In the summer of 2009, I read a financial news story that I won’t soon forget. It was about a woman who lost $1 million overnight. The unforgettable part of the story is not so much that she lost the money, but rather how she lost it.
As a gesture of kindness, an Israeli woman decided to do something kind for her elderly mother and bought her a new mattress as a surprise gift. She threw the old one out. The next day, she remembered that she had hidden her life savings inside of that old mattress. “I woke up in the morning screaming, when it hit me what happened,” she said. When asked why she had stashed money inside of a mattress, she said that she had had “traumatic experiences with banks.”
Regardless of the validity of the story, it raises a valid question – What are people doing with their cash? A survey done by American Express found that 53% of all respondents are hiding cash in “a secret location.” Of the millennials that were surveyed, 67% admitted that they hide their cash outside of a bank account. If individuals are not keeping cash in the bank, where are they storing it? A separate survey conducted by Marist College found that the most popular places were the freezer, a sock drawer, the mattress, and a cookie jar.
The real point here, is that regardless of whether it was your grandparents, yourself or your children, a great deal of people clearly don’t trust banks and for good reason. People look for a way to keep their money safe and aren’t sure where to put it. What they may not realize is that there are ways to keep money and utilize it to grow guaranteed wealth.
Those familiar with the benefits of whole life insurance know that there is a much better solution to the challenge of what to do with cash. A properly structured whole life insurance policy provides the perfect repository for cash. There have been several books written about this unique cash management strategy. In their book, How Privatized Banking Really Works, authors L. Carlos Lara and Robert P. Murphy outline the dangers of traditional banking and how whole life insurance serves as a natural solution to those dangers.
Contact Paradigm Life today for a free e-copy of How Privatized Banking Really Works and to speak to our Wealth Strategists.
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