DEVALUATION OF MONEY
THE VALUE OF MONEY IS IN YOUR HANDS
This is an arena that everyone participates in. It is about the value of money and specifically how we all contribute to the devaluation of the money in our own pocket. I see this as an incident of everyone jumping off a bridge because the person in front of them did so.
We are followers. If the leader does the wrong thing, we often will simply follow in their footsteps and do exactly as they did. After awhile, the wrong action becomes the norm and we discount the negative effects we encounter.
This has become the factor with our monetary system. We all know that inflation has been a major factor in the erosion of our buying power but is this the only negative effect on our money? Before I get into two other aspects, let’s put inflation off to the side. The reason for this is because this is bigger than something we can attack on a personal level.
2 FACTORS DEVALUING OUR MONEY
Here is something we can effect an outcome. These 2 factors are Taxes and Interest. These 2 expenses can account for up to 70% of our income in some cases. There are quite a number of ways I can approach this conversation. I spend anywhere from an hour to 6 hours a day studying information regarding business related strategies and methods.
I will not be discussing business structuring which is one of the obvious necessities. Instead, I will do an introduction to a concept that we were reintroduced to several years ago. When we sat down with the agent, I told her I had read several articles about this 30 years prior but could not find any information recently. (I just didn’t know where to look.)
As I stated, there are 2 factors we can regulate (somewhat). Those are Taxes and Interest. The method to regulate this in is INSURANCE. The concept is called BE YOUR OWN BANKER.
Savings are down and Debt is up. With this, payment on Interest is high. Keeping pace with credit is at times difficult for many and therefore, credit scores drop causing servicing debt to increase payment on Interest.
The concept of BE YOUR OWN BANKER is a method of restructuring your expenses and your savings. Notice I mention “Savings”. This has become a lost concept in most people’s portfolios. There has been an outcry in the Banking industry that “People Don’t Save Anymore”! When Inflation is higher than the Savings rates, you are losing money when you leave it in The Bank!
We can review other options but for brevity, let’s just say we eliminated them for the purpose of this writing.
Now, we return to the Concept of BE YOUR OWN BANKER as the option of choice. With this concept, we are using the Whole Life Insurance policy as a tool for implementing a Savings plan as well as a means to decrease the costs of Taxes and Interest.
What is your impression of the purpose of buying Life Insurance? Of course to leave money for your love ones when you pass on, right? Of course! But, what if you had an insurance product that you could leave a death benefit for love ones AND YOU CAN BORROW FROM IT WHEN YOU NEED?
This is the basis of the BE YOUR OWN BANKER Concept. The Insured purchases a Whole Life Insurance product that they can borrow from the Cash Value when they choose. They make loans to themselves then pay back the loan to their own policy.
When this product is correctly structured, the possibilities are almost endless. With this method, you can reduce Taxes and eliminate Interest. Not only these components but the biggest factor is the SAVINGS!
If you are interested in more information, contact me and I will make introductions with the person I have worked with. We have owned this product now for just over 5 years.
We have something like this here in Brazil. Not all the Banks have it, but it's real. All my money is in there, and I can take any amount I need for the month and send it to the checking account every 60 days. That's why I have 2. Taxes are withheld at source and when I pass, the money will go to those I chose in life, immediately, Inventory free.
In fact, the money goes into a savings account, attached to my checking account... So at the end of the year, my checking account's amount is zeroed, for taxes purposes.
Is something like this you are talking about?
Guess this has nothing to do with a Life Insurance, huh?!
I love that concept! We would love to eliminate banks altogether!
"BE YOUR OWN BANKER"...
I don't know where my head was when I replied yesterday.