If the phrase “infinite wealth strategies” conjures up images of a magical genie granting three wishes or money literally growing on trees, it might surprise you to learn that there really are strategies that exponentially increase your retirement income and cash flow. And not just for the 1%. With the right tools and education, anyone can grow perpetual wealth.
Sure, you might be thinking, what’s the catch?
There is no catch. But you might have to change what you think you know about earning, saving and borrowing money. Getting a college degree, working hard and contributing to a 401(k) aren’t guaranteed to make you rich. Few people find lasting financial success subscribing to typical financial advice. That’s not to say that investing and saving for retirement are bad practices, but when it comes to infinite wealth, there’s more your financial advisor probably hasn’t told you—because they don’t know about infinite wealth strategies that work either.
Infinite Wealth Strategies: What To Look for In a Policy and Death Benefit
If you had all the money you could possibly need or want, what would you do with it? Ask someone who is hurting financially, and they can tell you exactly what they would spend money on if they had it. But ask someone who has money to spare and the answer doesn’t come so easily.
Wealth doesn’t mean much if you don’t have financial goals. It may seem speculative to think about what you would do with money you don’t have, but formulating a clear vision of what you want your money to do for you is one of the best ways to track whether or not your wealth-building strategy is working.
Most people want to own a home, send their kids to college and have sufficient savings for a comfortable retirement, but the right infinite wealth strategy can do even more. What if you want to retire early and not have to worry about penalties and other costs associated with dipping into your 401(k) before age 59 ½? What if you want to start your own business? What if you want to expand your real estate portfolio?
Infinite wealth strategies can also address needs that often go overlooked, like the financial stability to take care of an aging parent, ensuring your business has a succession plan, and offering protection in the event of a market downturn.
Regardless of your financial wish list and your financial security needs, successful wealth accumulation strategies share these common features:
- Liquidity: Access to your wealth when you need it, regardless of age, without penalty.
- Certainty: A financial guarantee that takes the guesswork out of budgeting and building a portfolio.
- Control: The ability to keep more of your hard earned money.
- Protection: Structures to keep your wealth safe from market volatility, creditors and judgements.
- Cash Flow: Supplemental income and/or revenue for personal or business expenses in perpetuity.
- Legacy: A way to pass down wealth in a family or business.
Infinite Wealth Strategies: Which is Right for Me?
You might have heard the tax benefits of infinite banking, private family banking, or the Perpetual Wealth Strategy™ combined with a permanent life insurance policy. All are strategies designed to help grow and protect liquid wealth, offer a guaranteed rate of return, put you in control of your financial future, offer financial protection, increase cash flow and provide a legacy. So which should you choose?
It might surprise you to learn that all three of the other benefits of these infinite banking strategies are the same, and they use the same financial tool to help you accomplish your wealth goals: dividend-paying whole life insurance or permanent life insurance from a mutual insurance company.
Also called cash value life insurance, a 770 or 7702 Account, or a Wealth Maximization Account™, dividend-paying whole life insurance has been around for hundreds of years and has heped build wealth for the most influential financial moguls throughout American history. It was relied upon by the majority of American families as a primary financial tool up until the 1980s. When employers began to default on pensions, it became the responsibility of the employee to save for their own retirement, and the 401(k) was introduced. And while many individuals now funnel extra income into a qualified retirement plan instead of dividend-paying whole life insurance, banks and big corporations still hold billions of dollars in life insurance policies on their books.
Why? Because dividend-paying whole life insurance is an infinite wealth tool that is proven to work.
Structured for growth, these policies are designed to offer living benefits first and pay out a death benefit second. They offer lucrative tax advantages, allow you to recapture loan interest and are considered liquid assets during your lifetime. When you pass away, the death benefit acts as a conveyor of generational wealth or can further the continuation of a business.
How Millionaires Build Wealth Using Life Insurance
An infinite wealth strategy with whole life insurance serves two primary purposes: Grow more wealth and protect the wealth you already have by helping you keep more of your hard-earned money.
A properly structured whole life insurance policy grows and protects wealth in six key ways:
- It earns a guaranteed rate of return that isn’t subject to market volatility.
- It pays out non-guaranteed dividends, usually tax-free. (The mutual insurance companies we work with at Paradigm Life have historically paid dividends for over 100 years.)
- The cash value of the policy, including earned interest, can be borrowed tax-free and used to fund outside investment opportunities or purchases without high interest from banks or third-party lenders.
- Even when you borrow against your policy, it still earns a guaranteed rate of return, often resulting in net positive interest. In other words, you can borrow a dollar and earn a return on it at the same time.
- As a private contract between you and your insurer, your policy is a protected asset and typically not subject to judgements or creditors.
- It pays out a guaranteed, tax-free death benefit.
Most individuals who utilize whole life insurance for infinite wealth structure their policy to include a paid-up additions rider (PUAR) as well. This allows the policyholder to funnel additional money into their policy in its early years, supercharging growth and exponentially increasing returns over the life of the policy.
Infinite Wealth Strategy Success Stores Using a Permanent Life Insurance Policy
If the idea of wealthy people using life insurance to build an infinite wealth strategy that works seems like a stretch—it isn’t. Check out these case studies to see how individuals of all ages and backgrounds customized whole life insurance policies to help meet their financial goals.
- Wyatt, a 34-year old working in sales, and his wife each set up a dividend-paying whole life insurance policy with paid-up additions. In 30 years, when he plans to retire, they will have a combined guaranteed cash value of $3.9 million and a guaranteed death benefit of $8.5 million.
- Mike, a 46-year-old CEO, purchased a policy to help insure his business and guarantee government bonds. He can use the policy’s cash flow to generate tax-advantaged business capital during his lifetime and the death benefit—roughly $30 million—protects the family business for generations to come.
- Richard, a semi-retired business consultant in his mid-50s, was worried about recent market downturns. By redistributing a large portion of his equities into a tax-advantaged whole life policy, he can protect his wealth from market volatility. Richard customized his policy with a 7-year paid-up additions rider, which should supercharge his policy’s growth so much that he earns enough dividends starting in year 8 to pay the majority of his policy’s future premiums.
Read More: Infinite Wealth Strategy Case Studies
NOW IT’S YOUR TURN
Ready to see how an infinite wealth strategy could work for you?
At Paradigm Life, we know that millions of people follow out-of-date financial advice that prohibits the future they deserve. Perpetual Wealth 101 consists of a series of free videos that teach you The Perpetual Wealth Strategy™ and guide you to a secure financial future.
We also offer free consultations with our expert Wealth Strategists. Each utilizes the Perpetual Wealth Strategy with dividend-paying whole life insurance as part of their own financial portfolio, and has first-hand insight into how this strategy can benefit you, no matter your financial goals.
and start your journey to infinite wealth.
