Most people don't have control of their money.
This is a fact that is likely to startle the average American, but it's true, according to information released by the Federal Reserve.
While most Americans believe that they are "living comfortably," "doing fine" and have bright financial futures, the vast majority are not. According to the most recent Survey of Consumer Finances:
- Americans aren't saving enough money, with only about 46 percent of survey participants saying they could cover an emergency expense of $400 without selling property or borrowing money.
- Many Americans can't cover unexpected healthcare costs. The survey found many people skip medical procedures ranging from dental care to mental health counseling to purchasing prescription medication because they could not afford it.
- Nearly one-third of all Americans have no retirement savings. Of non-retired adults, 31 percent have no retirement savings or pension.
- Americans like to make big purchases--and are going into debt to do so. Nearly a quarter of the people surveyed said they or their spouse had purchased or leased a new car within the past 12 months, and about two-thirds took out loans to do so.
In short, millions of Americans aren't saving money, can't pay for health care, have no retirement funds and continue to go into debt. This is clearly a county full of people that don't have control of their money.
It doesn't have to be this way
Most Americans have been raised on the concept of spending, borrowing and living life in debt. You take out loans to go to college. You find a job and take on a mortgage to purchase a house. You finance braces for your children and borrow to buy new vehicles.
And every two weeks, you sock a little money away into your 401(k) or pay into your pension. Then you pray that nothing bad happens, so you don't have to put a significant amount of money on your credit cards.
It's a white-knuckle, out-of-financial-control way of living--and one that can be done away with if you practice infinite banking.
Infinite banking is a concept that puts you in control of your money. It's an efficient and effective way for you to save, build a retirement nest egg and have easy access to money--your money.
Here's how it works:
- You invest in a whole life insurance policy and pay your premium each month.
- As the value of your policy grows--thanks to your payments and compounding interest--you accumulate a cash value that can be borrowed against.
- After you have invested in your policy and built up a significant cash value, you borrow that money (your money) when you need to make a major purchase.
- You can use the money for anything you want.
- The loan is tax free, although you will have to pay interest on it (but that interest is likely to be less than what you would pay to a bank.
- The value of your policy continues to grow--even when you borrow against the cash value--because you are still paying your premiums, earning interest and perhaps even receiving dividends.
Infinite banking puts you in control of your money. You can access it whenever you want. You can do with it what you want. And when you pay it back, you are paying it back to yourself--no bank, no broker, no penalties.
Most people don't have control of their money. But maybe that's because most people don't know about infinite banking. If they did, the data collected by the Federal Reserve Bank would look a whole lot different--and the country's financial future would look a whole lot brighter.