Infinite Banking as an Investment When you create an infinite banking scenario with a life insurance policy, you not only are setting up a personal banking system with a lot of perks for yourself. You also are setting up an investment.
Infinite Banking 101 When using infinite banking, money that you earn is put back into the policy itself, which then increases the amount of investment that can grow. Life insurance policies use funds on the market like any other investment, and just like any other investment, money begets money when done correctly. When you put money into the stock market, the more money that you put into the stocks, the greater the return. That is why investing is the process of simultaneously growing wealth, keeping ahead of inflation, and branching out. With the market under normal conditions, there are definite risks involved with the process, and there are also restrictions in play which affect things as well. For example, the opportunities for lucrative growth of wealth are much riskier, and have the potential for people to lose all of their funds entered. With the more conservative options, a different set of conditions is in place. When a conservative approach is taken with reliable stock options, growth is going to be much more assured, but in smaller amounts overall.
The Benefits of Life Insurance The great thing about using a life insurance policy for your infinite banking is that the funds you put in are able to grow like stocks would over time, allowing you to grow your wealth. Life insurance funds have special protections in place which assure that they will not drop below a certain point, making them a safe investment to make overall. The other unique thing about life insurance policies as an investment is that they have a higher rate of return that conservative options. Essentially, this makes the funds a financial entity which is protected from dropping to a certain point, and gets better returns than strict conservative options. As such, infinite banking creates a situation where your money is going to be able to grow at a decent rate while not being subject to the whims of the market as much. The more money that you put in from your earned income, the more it will be able to grow and expand in this framework.
Controlling and Improving Your Situation When it all comes down to it, infinite banking is all about being able to control your situation and improve on it. Should you need to withdraw funds, you have that option.
The accrued earnings from your investment should be enough to help with finances, or you can easily put those earnings right back into the fund itself. It is a self-propagating cycle which grows and sustains the longer you are willing to put money into it. Such an opportunity is one that can change up your financial situation for the better. Infinite banking has many perks, and the safeguards in place are defiantly one of the major perks which make this method of financial control one which is defiantly worth investigating further.