Learn how we can strategically use the cash value of a whole life insurance policy to preserve and enhance our wealth.
In this episode, we discuss three strategies for using cash value stored in what we practically call our emergency/opportunity fund...
1 - Bond Replacement - While certainly less volatile, bonds can still lose value due to fluctuations in both the stock and interest rate markets. Additionally, most investors own bonds via professionally managed mutual fund portfolios wherein the fees will erode or sometimes eliminate the potential returns. Whole life cash value, on the other hand, is guaranteed to never decrease (unless you use it) and can grow comparatively, if not better than, bonds.
2 - Alternative Income Source - Cash values can be used as a supplemental or even primary income source in retirement. We also discuss how having access to non-volatile cash during market downturns can preserve substantial wealth… far more than the value of the cash itself.
3 - Investment Capital - I demonstrate how our money can essentially be used to do multiple jobs at once. In addition to purchasing our death benefit asset, we can then borrow from the life insurance company and use that money for investing and further wealth building.
We also discuss how the Disability Waiver of Premium rider can serve as an additional, and potentially substantial, form of savings protection in the event of a total disability.
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