(Newswire.net — August 3, 2018) — When it comes to planning for retirement, the earlier you start the better. While there are many ways to save for retirement, many are unaware of the benefits that safe strategies like Infinite Banking and whole life insurance, as an investment vehicle, can provide.
While many celebrity radio hosts consider whole life insurance and Infinite Banking a waste, this is simply not true. This strategy can be extremely beneficial, especially for those who want to stop risking money with Wall-Street methods.
If you want to save money for retirement prudently, then Infinite Banking may be a smart alternative for you. Let’s look at what role the Infinite Banking Concept can play in this regard:
Benefits of Infinite Banking for Retirement
Infinite banking is a retirement plan, investment vehicle, and savings account all rolled into a high cash value whole life insurance policy. An Infinite Banking policy is one that utilizes this high cash value whole life insurance for the growth, liquidity, safety, and tax advantages it can offer. Why? Because, fundamentally, building safe, compound interest over time can have a massive impact on your retirement portfolio.
What sets Infinite Banking apart from various other funding options like IRAs, 401ks, or mutual funds is that you are own your in complete control. The core of Infinite Banking, high cash value whole life insurance, offers a safe way to grow wealth competitively, use your money whenever you want with complete liquidity, and find tax advantages that can’t be found anywhere else.
As a retirement plan, Infinite Banking can offer many advantages that other government sponsored plans cannot.
You Never Lose Money With Infinite Banking
A lot of people prefer to buy shares in the stock market to safeguard their future. However, this strategy has several risks involved. The stock market can be very volatile.
Many young investors say, “I am young enough to lose some money.” However, the inverse is also accurate. If you start saving, without losses, while you are younger, you don’t have to risk money to create a successful, long-term portfolio.
And, when you are older, moving money into a safe, no-loss financial investment offers protection from major downswings in the stock market.
Infinite Banking is tied to whole life insurance, which grows based around safe investments and dividends. It is not a market investment, therefore, Infinite Banking policies do not lose money due to market drops.
And Infinite Banking offers competitive growth over the long-term. The advantage being that it can compete with other investment alternatives.
However, that being said, Infinite Banking is a long-term strategy, and can take years to begin producing the necessary income to be used for retirement. Proper planning must be done to correctly use Infinite Banking for retirement planning.
No investment is perfect. Safe investment alternatives offer safety at the cost of potential profits. It is up to you as an individual to decide if safe investments are right for you. Infinite Banking is a safe investment, however, it offers more growth, in most cases, compared to many other safe investment alternatives.
Tax Advantages of Infinite Banking
What’s the biggest nightmare for those preparing to retire? Taxes. It doesn’t matter if you’re a high income earner or not, almost every retirement option postpones taxes for the future.
Tax percentages can make a massive difference in retirement. Tax percentages could go up due to government changes, new laws, or just personal income and lack of tax-deductions.
Many fail to calculate taxes when doing their retirement planning. If the tax percentage you pay is at 20%, then if you are earning $100,000 per year, $20,000 goes into taxes–and you receive $80,000.
A properly structured whole life insurance policy will be post tax, and then, if structured properly, it will never be taxed again with income tax.
By keeping the life insurance policy open while we are living, we avoid taxes, and, when we die, the death benefit transfers income tax-free to our heirs. This is how Infinite Banking remains tax-free indefinitely.
Whole life insurance is the best asset to die with, the reason so many of the richest 1% own massive amounts of whole life insurance.
This is one of the most important benefits that Infinite Banking can offer. It is able to create a family legacy that can be passed on from generation to generation.
Pre-Retirement Liquidity and Infinite Banking
Retirement options are not only about saving money but also about investing. Many that own 401ks, IRAs, or other retirement plans are often unable to get capital when real investment opportunities arise—like a person business or real estate deals.
Infinite Banking offers liquidity for those who need it. Other retirement options force an individual to be fully invested in the market as their only option. However, as many of us get older, we may decide we want to open a businesses or invest in other options besides the stock market.
Infinite Banking offers liquidity for investments when you need it. Although there are always options like a HELOC or other real estate loans, this does not solve the problem of a 401k that cannot be touched. With thousands, or even more invested, many find that not having access to these retirement plans becomes a burden at some point in our lives.
When Does Infinite Banking Make Sense?
Alternative investments don’t always make sense. For those with company 401ks, it can often be hard, if not irresponsible, to walk away from a company match. A company match offers a return on investment that cannot be found anywhere else.
However, for those contributing over the match, or funding these government sponsored plans without a match, Infinite Banking may offer an alternative investment option that makes sense.
Infinite Banking also comes with upfront fees inside the life insurance policy. However, as a long-term investment, these fees can become minimal when compared to yearly fees taken in fee based accounts. This can vary depending on how the life insurance policy is set up for Infinite Banking.
Conclusion
There is no perfect retirement option. Infinite Banking makes sense for those looking to get away from Wall-Street and stock market risk. Those who have self control and are looking for safer ways to grow their wealth may find that Infinite Banking offers them a smart alternative. Always speak to a professional before making major financial changes or decisions.