"You got to know when to hold 'em, know when to fold 'em, know when to walk away, know when to run ..." -Lyrics from the "The Gambler"
Ah, Kenny Rogers. Who knew when you sang those famous words of wisdom way back in 1978 they'd apply to banking nearly 30 years down the tracks?
But they do.
Banks are essentially casinos, except less scrupulous. They play with house money, which is your money, rarely pay out, and yet have a way of keeping you coming back for more.
Think about it: When banks loan someone money, they're using other people's money – and getting paid for doing so in the form of interest. And even if you don't take out a bank loan, even if you're only using the bank as a place to save money, the bank is only paying you about 1.2 percent interest – and that's on the high end of the spectrum.
But most people think that banks are the only game in town, so they keep coming back time and time again for mortgages, car loans and lines of credit.
Banks are like casinos because you might get an immediate fix (a quick influx of money), but doing business with them will always wind up costing you more in the long run.
So why hold your money, fold up your savings account and run – don't walk – away from banks? Why not bank on yourself instead by practicing infinite banking?
Being Your Own Banker
Infinite banking, which is also known as being your own banker, is the process of leveraging the power of a dividend paying whole life insurance policy to finance your major purchases.
By saving money in a whole life insurance policy rather than a savings account (or even a money market account), you are putting your money in a place where it is guaranteed to grow.
You'll be making monthly premium payments and then some if you really want to maximize the effectiveness of the infinite banking concept. You'll be earning interest. You just might be earning dividends.
And in a relatively short period of time, you will have built up a significant cash surrender value, which is the amount of money your insurance company will pay you in the event that you voluntarily terminate the policy before it matures.
Infinite banking is a great way to relatively and quickly cut banks out of your life, take control of your financial future and build wealth.
The Benefits of Infinite Banking
There are many reasons why banking on yourself makes a lot of sense. Here are a few:
- Savings are guaranteed to grow tax free.
- Whole life insurance policies typically earn interest well beyond what standard savings accounts pay.
- You may be eligible for a share of the insurance company's profits in the form of dividends.
- You have the freedom to access your cash value whenever you want it, for any reason.
- When you take out a "loan" against the cash value of your policy, you'll still be earning interest (and quite possibly dividends) on the whole amount of the policy – the remaining principal plus the amount of the "loan."
- You don't ever have to repay the loan (after all, it's your money).
How to Become Your Own Banker
Sound too good to be true? Understandable. After all, banks have been holding all the aces for as long as you've been saving money.
If you are ready to go all-in by banking on yourself, connect with us today. The process is relatively easy, and for the first time in your life, you'll hold all the chips.