Savings is the foundation of your financial Life, without it, you are like a shipwreck on the open sea, vulnerable to the winds of chance. I have been a saver at different times throughout my life, more off, than on. Although 4.5 years ago when I discover to my surprise the power of saving in a Whole Life product that is with a mutual Insurance company that pays interest daily and dividends annually our family had to get started as soon as possible because savings and consequently wealth accumulates over time, and the clock was ticking.
Now 4.5 years later I'm driving home thinking about sending money back to the loan we have taken with the insurance company to do the things we want to do. And it dawns on me in a whole new way that because it is 4.5 years later, nearly all the money we send back goes into the Cash Value (CV) columb, (we pay a small interest charge for the use of their money) growing the available cash we can borrow again later whenever we are ready to, for another investment or, if an emergency comes up. You may be asking yourself why should I pay to borrow my own money? Well technically you are borrowing from the general fund of the Mutual Insurance company and never touching the premium and PUA money you've sent them. It's all about being honest with yourself about the banking function in your financial Life.
Now you may say you can do the same thing with your savings in a typical bank which is true Although each time you remove money from your savings it immediately stops accumulating interest, which does not happen with your new policy. And that interest in your typical savings account is taxed, and again in your new insurance policy there is no tax consequence.
Now again in thinking about sending money back I get very excited, because I know, we as a family are on a carpet ride of uninterrupted compound interest, (this is key for growth) that grows for the rest of our lives. And the continued premium payments along with paying back the loans (which is what you would have to do with your neighborhood bank) got me a bit giddy in knowing I am excited and incentivised to store my savings with a Mutual and/or fraternal insurance company because of the certainty of growth over time that we cannot get anywhere else...
If you would like to talk or have any questions after listening to the video (please do listen) please reach out to us here a BlueSkyFinancialFlow.com We'd love to hear from you.
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