The common advice listed above is probably okay for the average American seeking an average life, but when you look at the elite in America, it’s not that they just do things differently than the average American, they do the exact opposite of what the average American does.
Today, saving and investing are often thought of as the same thing. In reality, they are two very different concepts. Understanding the difference between saving and investing is crucial to your personal financial development. I will walk through what exactly saving and investing are and what vehicles can be used for each concept.
The Infinite Banking Concept is a thought process that teaches one how to take control of the banking function in their life. Anyone who is an IBC authorized practitioner will show you how to implement this with dividend paying whole life insurance. You can perform the banking function with other financial vehicles though, so why don’t we use something else?
In an earlier blog, How Do I Access the Money in My Policy, we explained 3 ways of accessing the money in your policy. They included a sad way, a dumb way, and a smart way. The smart way involves taking policy loans, and we will explain in depth how these work here.
Each of these products have a place for clients. We will be comparing these two products just on a dollar cost basis over someone’s life.
What does buy term and invest the difference mean? When you hear this phrase, it refers to the difference between the cost of insurance for a whole life policy and a term life policy, for the same amount of death benefit protection. The idea is then to “invest the difference” in cost, to receive a higher Rate of Return than you can get with a whole life policy.