When we look to the ultra-wealthy, we see the embodiment of perpetual wealth. They seem to never worry about running out of money, and they don’t even seem to save, as they simply live off the huge returns they get on already accumulated wealth. This level of wealth seems so far out of reach for most Americans; we’re constantly scrambling just to be able to pay our mortgages, send our kids to college, and save for retirement. But the concept of living off our own wealth isn’t just for the ultra-rich. All it takes is a wholesale shift in how you think about wealth-building. Let’s walk through how you can learn to view perpetual wealth as more than just a pipe dream:
Breaking the Broken Income Cycle:
- Linear investing will never lead to perpetual wealth: All your life, you’ve been taught to view wealth-building in linear investment terms. You put your money into one investment and then sick back and hope it earns you a steady rate of return. But this strategy is no better than gambling; inevitably, you pick an investment that doesn’t pay off.
- You must think of investing in circular terms: When you adopt a circular investing strategy, you are not thinking of your money as something you use to invest once, but rather something you keep moving through multiple investments.
- Whole life insurance is your secret weapon: A whole life insurance policy is the ideal investment product because when you put your money into this incredibly stable, secure product, you can borrow against your policy’s cash value anytime you’d like. In this way, you can immediately reinvest what you borrow into another investment product – to truly keep your money moving through more than multiple investment products at the same time.
- Perpetual wealth means cash flow, not cash accumulation: Most Americans save money to accumulate a bigger total dollar figure. But that’s not what the ultra-wealthy do. They don’t need to inflate their net wealth to feel wealthy; they just need to keep money flowing to them. You can achieve this same cash flow with a whole life insurance policy.
Take a look at some of the basic principles of infinite banking here.
Too many Americans believe that perpetual wealth is not attainable because they think in traditional linear investing terms. When we learn to view investing in circular terms, use whole life insurance as the foundation of our circular investing strategy, and recognize that cash flow equates to financial security, then we too can enjoy the perpetual wealth that the ultra-wealthy seem to enjoy by birthright.
For more information about how to build perpetual wealth, visit Paradigm Life’s section on Infinite Wealth: A Different Kind of Retirement.