What are you losing out on because of ignorance?

Dollars and Sense

By JULIUS?BOTELHO, Alpha Omega Wealth

What do John McCain’s launch of his presidential campaign, Doris Christopher’s launch of her fledging business Pampered Chef and J.C. Penney’s relaunch of his stores after the Depression all have in common? Each had built a reserve fund within specialized life insurance policies and used that fund as collateral for a loan from the insurance company that they then used for their business and political pursuits.

What do Dave Ramsey, Susie Ormond and various other entertainers have in common? They all claim that such a thing can’t be done and Susie goes so far as to say that if your, “best friend tries to sell you a whole-life insurance policy, find a new best friend.”

“The worst type of economic ignorance is the type that is the worst in all fields: being ignorant of your own ignorance.” — Steven Horwitz

According to a 2014 Federal Reserve System report, commercial banks owned $137,000,000,000 (that’s billion if you lost count of the zeros) dollars’ worth of life insurance on their own employees. Do they know something that Dave and Susie don’t? Do they know something that you don’t? Consider these facts that you might have never heard before. 1.Whole-life insurance gains are generally not taxable. 2. Whole-life insurance is the cheapest way to own life insurance that will last until you die. 3. Using the cash inside an insurance policy as collateral for a loan does not interrupt the compounding of interest on that cash. 4. Many whole-life Insurance companies have no stockholders, so all their profits are paid out to their own policy holders. 5. Many whole-life insurance policies offer buaranteed rates of return inside their policies.

Are these facts ones that you are ignorant of? Are things like “uninterrupted compounding,” “gax-free growth” and “guaranteed growth” attractive to you? I encourage you to consider that you might have something you could benefit from by learning more about. These financial vehicles and the active use of them are the core of the Infinite Banking Concept that I introduced you to last month in by recommending Nelson Nash’s book, “Becoming Your Own Banker.” This month, I’ll encourage you to let me review your existing life insurance, and let’s explore together whether you have some economic ignorance that we can replace with wisdom. Nancy’s chocolate chip cookies that I offered last month are long gone, but if you let me know you’re coming, she’ll probably make more.

Julius Botelho is a financial educator whose passion is sharing the truth about money and how it really works, helping people identify opportunities they might never have seen before to achieve financial freedom. He is the first in his industry to ever open an office in Inyokern. Reach him at 760-377-3267 or Julius@alphaomegawealth.com.

Story First Published: 2018-08-24