The connection between volatile world events and a volatile market is easy to see, and as investors, we may not be surprised by it but we accept that it’s uncertain. Market volatility isn’t a new phenomenon, but ask yourself, “Is the next huge wave upon us?” And “is now the time to get off that ride?”
Realizing the current typical investment model is broken and that it is, indeed, time to get off that ride becomes your own Financial Independence Day—it’s when you shift your thinking away from traditional and popular trends and start taking advantage of other financial choices. Then every day after that, you have more control and freedom over your liquidity, growth, and stability.
Today’s blog is really a “back to basics” about recommended strategy and the fundamental mechanics of our recommended strategy—an incredible opportunity that can set you free financially. The concept of being your own bank that has been successfully used since about 1760 and has created wealth for centuries. The idea also inspired the Infinite Banking Concept, developed by Nelson Nash after 35 years of careful study. Permanent life insurance is the fuel to operate the Infinite Banking Concept. When you understand how insurance has evolved over time and partner with experts who know how to properly set up a policy, you’ll have more protection than you ever need and a huge amount of cash accumulation.
Here are the three reasons why we are so adamant about using these principles to structure your permanent insurance:
The key to your accumulation is in what we call cash value. Your cash value. It’s essential that you set your insurance up right. Here’s how:
• Split up your premium between a level whole life policy and a “paid-up addition” or single premium piece.
• Set 30 to 40 percent whole and 60 to 70 percent paid-up addition.
• Consistently assess the efficiency of your policy.
You will have a guaranteed amount of money paid to you over time. Tax benefits are also associated with the growth on the policy.
It’s the perfect private investment—you can have an internal rate of return much higher than in any market environment. It’s the closest you can get to owning a money tree. This structure is a similar strategy to the strategy used by banks and large companies for hundreds of years. Although the idea is similar, the setup and implementation of this strategy is slightly different for individuals. If you have questions or need help to get started, we created our free eCourse called Infinite 101, where you can find out more about how to specifically set this up.
2. Multidimensional Use
When we say multidimensional use that means that you have choices for how you use your money. Notice the emphasis on your money. Your policy is your bank, and your money is accumulating while you borrow against it for purchases. What? Yes. Income real estate, cars, vacations, building your business . . . you can use it for anything you want.
Here’s how—first, set up your life insurance the way we described above with a paid-up addition. Then, find something to purchase. You are cut a check with no questions asked—no paperwork, no credit check, and no possible way to default. Lastly, pay yourself back. In most circumstances your money is growing as if you never took it out. You call a Paradigm Life representative any time to learn more about this strategy.
What opportunities could you take advantage of if you weren’t obligated to the bank? For example, Tyler needs a car. He takes a $20,000 loan from his policy with no problem, because his collateral is the cash value of his policy. The secret sauce here is that the cash value is still “in” his policy and he’s still getting a return on his full policy value while he pays himself back.
Guarantees go a long way in providing an economic freedom that is hard to quantify. Most people are conditioned to think that 401(k), ROTH IRAs, and mutual funds are the only tools to invest and get a return. We’re here to tell you that there is a more stable alternative to Wall Street.
In a nutshell, Infinite Banking is a cash management strategy where you use your insurance policy as an investment vehicle that provides a return that offers inflation protection and future compounded interest, allows for financing, and also provides a death benefit. Can you put a price on not worrying if your money is going up, down, or sideways? Imagine using a method that has been around for centuries, paying out dividends on financial methodologies that have never failed. You’ll never empty your assets if you properly protect yourself. And the money inside your policy is completely protected from creditors.
We want to teach you how to take control over your finances, operate your gains, use your money, and redirect spending that would have gone to creditors and interest. Your ticket is educating yourself and aligning yourself with a partner who knows how to apply these principles. Those who understand the Infinite Banking school of thought as well as the intricacies of the concept understand fully the principle of FREEDOM.
In our commitment to helping you learn more about how this system of building wealth works we created a FREE eCourse called Infinite 101®. It only takes 2 minutes to sign up and receive access to a wealth of video tutorials, articles, podcasts, and webinars that quickly explain our Perpetual Wealth Strategy. Take advantage of this FREE resource by clicking below.