When life insurance is set up and used properly, you can access your money through a collateralized loan while allowing your money to grow. Many prominent figures, like Walt Disney, have famously used life insurance policies to fund ventures like Disney World. But why do banks have billions of dollars in bank-owned life insurance as part of their tier one assets?
There's growing research about how life insurance can provide more options for retirement income. Today, we'll dive into understanding the power of life insurance as a wealth-building tool from a tax perspective. Let's welcome Caleb Yoves to enlighten us on this topic.
Before exploring life insurance, let's understand my thesis, which distills into two words: Wealth Efficiency. First, we must define what wealth means. If our goal is to be wealthy, we need clarity on this concept. Common answers include financial independence and freedom. We aim to make intentional living the new wealth metric, valuing more than just money.
Efficiency is about avoiding waste while achieving desired results. It's crucial to clearly define where you want to go and decrease friction to reach your goals. Being efficient requires knowing your desired results, which is often a missing piece for many people.
Sharing a personal story, I realized if I could have my money do more than one job like life insurance, it would be more valuable. Life insurance isn't just an investment; it's an asset that can serve multiple purposes:
The question isn't whether life insurance is an investment; it's about how efficiently it can be utilized alongside other financial tools.
There are misconceptions surrounding life insurance, often fueled by uninformed opinions. It's crucial to understand that not all life insurance is created equal. Our goal is to educate on the nuances, helping you make informed decisions about using life insurance to maximize the efficiency of your finances.
Prominent figures, banks, and corporations utilize life insurance strategically. Understanding why and how they use these policies can offer insights into their potential for personal finance efficiency.
The key takeaway is efficiency. By understanding how life insurance works and strategically incorporating it into your financial planning, you can achieve more significant results with a single resource. Life insurance, when used correctly, is more akin to a modern smartphone—it's efficient and multipurpose, not just an investment.