You can grow your cash value and then use it to pay off debt,
purchase other income producing assets, finance your friends and family, and pretty much anything else under the sun.
We typically prefer non direct recognition companies for those who plan on using their policy as a «safe bucket», borrowing funds to
purchase other income producing assets.
This is a huge advantage for anyone who uses a policy loan and wants to maximize the potential arbitrage available to
purchase other income producing assets.
Further, when using whole life for infinite banking the returns on your money can be astronomical, as you use your policy's cash value to
purchase other income producing assets or to recapture interest that would otherwise go to a financial institution.
That means your cash value is continuing to grow via compound interest, even though you are using it as collateral to
purchase other income producing assets!
The business interest or assets are then sold by the charitable trust with NO capital gains AND the proceeds may be used to
purchase other income producing assets.
This is a huge advantage for anyone who uses a policy loan and wants to maximize the potential arbitrage available to
purchase other income producing assets.
Rather, the policy acts as a forced savings plan that accumulates money in a tax deferred account that you can THEN use to invest with, as
you purchase other income producing assets, at the same time as earning interest and dividends on the cash value in your policy!
We typically prefer non direct recognition companies for those who plan on using their policy as a «safe bucket», borrowing funds to
purchase other income producing assets.
Not exact matches
One of the ways we encourage our clients to maximize their whole life insurance policy is to use the cash value as collateral for a life insurance loan to
purchase other income producing cash flow
assets, such as real estate and
other investment opportunities.