Seven ways you can help your clients beat the Behemoths at their own game
By Jeffrey Reeves MA
The financial system in America is set up to assure the success of Behemoths -- large businesses, large unions, lobbyists like AARP, shadow organizations like ACORN and the SEIU, and the biggest beast of all, large government bureaucracies, especially the IRS, which now is also the National Health Care Police.
In order for Behemoths to succeed, they need your money.
Therefore, the financial system in America is set up to transfer your money to the Behemoths. However, you and your clients can beat the Behemoths at their own game.
Seven ways to beat the Behemoth
1. Decide to keep your money for yourself and your family.
Is it any surprise that the businesses that are big enough to afford advertising in the national media are the same businesses that most want to gain control of your money? Of course, they do it in a way that makes you and your clients feel good about making the bad decision of giving up control, and mask that bad decision as a move in the right direction.
You can dodge this endemic disease of disinformation with a simple decision to maintain control of your -- and your clients' -- money by protecting, preserving, and managing it in participating whole life insurance policies.
2. Act as your own banker and control the money that flows through your life.
You will find many sources that describe the strategy of using participating whole life insurance as a "bank." The basic premise of these strategies is that every transaction requires several parties and each party needs to make a profit. When your clients use a participating whole life insurance policy as a bank, the commercial banks, the seller, the IRS, and the monetary system all take a hit. The cost of the transaction diminishes accordingly, and the value lost by the Behemoths accrues to the policy owner.
3. Take the mystery out of money.
Honestly evaluate your clients' personal economies and discover where the money leaks are. Then plug them.
The most devastating money leaks are taxes and interest. It takes nothing more than awareness and attention to a few details to save hundreds, thousands, tens of thousands, and more. Here are just a couple of ideas for your clients:
- Fill out your W4 so your employer deducts only about half the income tax you expect to owe at the end of the year. Then, make sure you deposit that amount into one of your participating whole life policies, where it will grow tax-free. When tax time comes around, you can borrow or surrender enough to pay your taxes.
- When you purchase items that have a zero interest for six or 12 months offer, negotiate a cash price from the retailer instead -- usually 5 percent to 10 percent -- borrow the money from your participating whole life policy, and repay yourself. Be sure to repay the non-discounted amount and the interest you would have paid the retailer if you had purchased the product using a credit card. This assures that your policy will grow more than originally projected.
Put the same amount of money into a participating whole life insurance policy, where it grows tax-free and creates tax-free income that you alone control.
If you had put $10,000.00 a year into the DJIA beginning in October 1998 through October 2008 -- $100,000 total -- you would have had $92,800 in your account at the end and it would all be taxable. The same $10,000 paid into a participating whole life policy would have a non-taxable cash value of over $128,000
5. Use your participating whole life insurance policy cash values to buy cars, appliances, furniture, etc. and redirect thousands of dollars in interest you would otherwise pay to moneylenders back to your mutual insurance company, thereby replenishing your borrowing power and helping assure healthy future dividends, as well.
6. Save for your vacations in advance and increase your vacation budget every year by doing so.
It's a pretty simple equation. If you paid for a $5,000 vacation with cash or credit and refunded the account over the ensuing 12 months, you could take a $5,000 vacation every year.
If, on the other hand, you structured a participating whole life policy properly to accumulate the first $5,000, you could execute and repay a policy loan each year and, because you continued to pay premium that increases cash value, you could take a policy loan for a higher amount every year, and give yourself a better vacation.
7. Increase health, auto, health, and homeowner insurance deductibles over time and in proportion to savings in your participating whole life policy. This strategy reduces property and casualty premiums and increases the cash value of the participating whole life policy.
Using this model, you can...
- eliminate all debt-to-others
- create tax-free income you cannot outlive
- grow a large ready-cash reserve
- create a legacy for those you care most about
*For further information, or to contact this author, please leave a comment and your e-mail address in the forum below.