A source
of liquid funds for the business through policy cash values when the employer owns the policy.
The main
feature of liquid funds is that they provide higher returns than bank accounts without compromising the safety.
The trick is to keep $ 20,000 or so in your TFSA invested in some
form of liquid funds (but not GICs as they're often locked in for a year or more).
When you buy a bond, you convert a given
amount of liquid funds into future cash flows, and when you sell a bond, you convert future cash flows into readily available capital.
Because the designated trustee must manage the trust for your benefit, ILIT strategy helps ensure the
availability of liquid funds when they are most needed.
It's a huge
reserve of liquid funds, and Berkowitz wants it for a couple of reasons, both of which suggest that he sees a rocky road ahead for the U.S. economy.
In the end, someone who wants to have a
lot of liquid funds can get pretty good interest rates if they are willing to juggle many accounts and requirements.
• Option to liquidate your insurance assets: In case you are in
need of liquid funds at any point during the term beyond a year of buying the policy, LIC offers you options for withdrawing funds as a loan, with the amount available to you depending on how many years the policy has run.
- a
store of liquid funds via «cash value,» which can be borrowed from with out bank guidelines for any reason within 3 - 5 business days up to 90 - 95 % of the current cash value however Its probably not recommended to borrow up to that high because you'd probably want the returns on your cash value to be «enough,» to cover atleast the admin and cost of life insurance aspects of the policy so that the policy is self sustaining and kept in force.
I do believe, however, that all investors should allocate
some of their liquid funds to precious metals (usually 5 — 10 %) as insurance against financial disaster.