How you save usually depends on where you are in life and what you are saving your money for. If you are putting aside money for everyday expenses or to grow your wealth, you might be building on your savings in a traditional account, putting some funds into a CD for a higher interest rate to create growth, or even investing into a mutual fund to garner dividends. You might even be playing the market to make those exponential gains. If you are nearing retirement or you are well established in your life and career, you are probably trying to grow your wealth through qualified protected plans that use the market for growth and don’t expose you to taxation at this point of your life.
If you aren’t practicing good savings habits or you aren’t taking advantage of alternative savings plans, there are a few things you can do to save a little more money here and there. However, none of them can give you the security and growth that Factum Financial can show you how to cultivate with Infinite Banking. Here are some suggestions that other financial experts might recommend along with the pros and cons of each option.
- Certified Deposit – A Certified Deposit is a type of savings account that has a determined interest rate and a fixed date at which you can access the money. Some experts recommend laddering CD accounts at variable rates in order to grow your savings. You will see some growth with this type of savings plan. However, the full growth on your savings over a 5 year period with a $20,000 savings ladder is exponentially lower than the growth you would see with a specifically designed dividend paying whole life insurance policy for the same amount. Not to mention the fact that your funds are locked into the deposit and cannot be accessed without hefty fees.
- Bond Mutual Funds – Bond mutual funds are similar to mutual funds where you essentially deposit your money into a pool with other investors to purchase stocks, but Bond mutual funds invest into debt securities and are considered a safer investment than mutual funds. People choose to put their money into bonds to “diversify” and earn a larger dividend. However, the reality is that there is still some risk in these investments and their yield isn’t as consistent as a mutually owned whole life insurance policy.
- Paying Down Debt – A lot of experts will suggest this obvious way that you can save money. Debt is a huge budget killer and millions of people can’t save adequately because they are paying down debt. You can apply the snowball method, where you pay off the debt carrying the lowest balance first and allow the money to grow that you free up to “snowball” until you roll over all of your debts, or you can pay off the high-interest debt first to get out from those largely compounding debts. Paying off debt is great, but there is a downside to paying off debt traditionally: you only have a zero balance to show for it when it’s paid off. However, with Infinite Banking, you can pay down debt and retain cash value that you continue grow!
- Brokerage Accounts – These accounts are touted as a blessing to people because it gives them the ability to put money in a multitude of different types of investment selections to grow their savings exponentially. This is like a less risky way to invest in the traditional manner. The problem: no tax deferral. You end up paying taxes early on an investment you are trying to use to save for retirement. However, a properly structured whole life insurance policy will protect your money from taxation, give you consistent growth, and will give you access to a cash value that you can use immediately.
- Relocate – Some experts recommend that if you are worried about your retirement savings stretching out far enough, you may need to look at living in a different locale. You can survive on a lot less in a smaller city outside of the cosmopolitan centers of the United States. If you structure a whole life insurance policy with the right benefits, imagine retaining the income level you need and not having to worry if your dollars can stretch.
- Real Estate Or Small Business Investment – You can make a decent amount of income from a real estate purchase or a contribution to a business as a silent partner. You have to make sure that these are sound investments and aren’t going to tank, losing all of the money you put forth. Another major issue is that there is a long turnaround time for profitability and every year there is potential for a downfall that could wipe out your capital. You can’t save for retirement without consistency and safety, something you can count on with Infinite Banking.
These are simple practices that anyone can put into place with their money and start to see some rewards. However, there are limitations on all of these options. They can only take you so far and do so much for you, but financial gurus are quick to point to these as your only alternative savings options. What if you had a different option? If there were a savings vehicle that would see guaranteed compounding growth every year and give you the ability to generate income, make purchases, pay debt and save money at the same time, what would stop you from taking advantage of it?
A Different Way Of Saving
At Factum Financial, we are big proponents of a smart savings plan for the future. No matter where you are along your financial journey, healthy savings habits are important for your goals. However, a lot of the modern solutions for savings and growth are unreliable, risky, low-reward, or simply a scam. We believe that the current financial system is broken and we want to give people access to a time-honored tradition of saving and growth through the Infinite Banking Concept.
All of the above methods for saving offer some reward, but many are not without significant risk and if they are, the return is low and inconsistent on a sum of money that could be earning you so much more in a specifically designed banking system that you control. With Infinite Banking through Factum Financial, you get to take back the banking function in your life from the banks that profit heavily off of your financial needs. You can protect and grow your savings with a dividend paying whole life insurance policy, giving you the keys to a retirement savings vehicle that is truly compounding without the massive tax bite that comes with a qualified plan like a 401K. Through Infinite Banking, you can pay for major purchases while recapturing the principal and interest you would lose on a typically financed purchase and you can pay down debt without draining your savings to a zero balance. You don’t have to put your money at risk to see real rewards. You just have to think about saving differently.
Basically, through the concepts we teach, you can experience true financial freedom. Life insurance is traditionally a product that focuses on death benefit and protections for your loved ones when you pass on. While that’s an obvious benefit, we like to focus on the living benefits that you can access through Infinite Banking.
If you’re ready to experience true financial freedom, you need to contact the team at Factum Financial today. You’ll learn new ways to save money, grow your wealth, and protect your legacy for the future. Call us today at (480) 425-8180 to set up a free 30 minute wealth strategy session with one of our Wealth Strategists.
If this topic interests you, read our previous blog post.