In my last post I introduced you to the concept of the Living Wealthy Account, and the use of a special whole life insurance vehicle to enable this. It’s easier to draw a loan from this account – to borrow money – than with a traditional bank.
For example, suppose you find a great real estate deal that can make you a lot of money in short period but requires $20,000 down. If you don’t have that in cash, you can borrow it from your Cash Flow Insurance policy with no credit check, extremely low interest rates, and no timetable for repayment. Then, you can use the cash flow from rent to pay back the loan. (This is a hypothetical example only and you need to be aware of all the rules before leveraging your Cash Flow Insurance policy to invest. For example, if you don’t repay the loan during your lifetime, your death benefit will be reduced. Furthermore, if you don’t do it right, you could lose your policy. Consult with a certified Rockefeller Formula specialist. Visit www.RockefellerFormula.com to learn more.)
My 5 Day Weekend collaborator Garrett Gunderson, as a business owner, is constantly looking at opportunities, and having a Cash Flow Insurance system allows him to take advantage of those opportunities. Garrett has used his Cash Flow Bank many times since 1998. He’s used it to buy into businesses, pay off real estate and credit cards, and to invest in a video recording studio for his business. Using it to invest is how he has recaptured all the insurance costs.
Deposits you make into your personal “Cash Flow Bank” never lose value, providing you capital preservation without risking principle. Your cash value is not affected by market volatility if the economy “crashes” again. It protects you against litigation, so you never have to worry about losing your money due to a lawsuit or bankruptcy (protection varies by state). Your account is a contract, so you know exactly what your guaranteed returns are. And since this is a private contract, it is not regulated like government-sponsored retirement plans.
Your wealth grows automatically as your account enjoys tax-favored growth and takes full advantage of compounding interest. The steady, guaranteed return historically averages around 4%, while non-guaranteed dividends can add an additional boost to your cash value by 1% or more.
It is important that you properly fund and commit to your Cash Flow Insurance. If you were to abandon this early on, you could lose money due to the up-front costs of the life insurance policy. Or, if this is designed improperly, it could have too high of insurance costs and take too long before you have access to your money.
In my next post, I continue to explore the concept of whole life insurance as a vehicle for building wealth, and I compare it with other forms of savings vehicles.
In the meantime, I’d love to hear your thoughts on a Cash Flow Insurance account. How would you use it to build wealth? Thank you for sharing.
Secure your copy of the “5 Day Weekend” book. 5 Day Weekend: Freedom to Make Your Life and Work Rich with Purpose [Nik Halik & Garrett Gunderson]
Leave a Comment