How can you get started creating mailbox money? As in, what assets can you buy that spin off cash into your pocket each and every month without you having to work to produce it.
That is called passive income and it is one part of the formula to financial freedom.
The formula to financial freedom (as we covered in episode03) is:
Passive Income > Monthly Expenses = Financial Freedom
Today’s passive income source may be of a surprise to you…
In this episode, we are discussion whole life insurance in a different light. As in, this is not your typical “worst investment ever” whole life insurance.
Instead, this new age whole life insurance is a tax-advantaged warehouse for wealth that can produce passive income for you in multiple ways.
Not surprisingly, most American’s follow the Wall Street Mindset when deciding where to park their savings. The majority of people (you included) park much of their savings at a low-interest bearing, highly taxed savings account at a local bank.
In 2008, Russ Morgan pursued an alternative to these savings accounts. He studied for hundreds of hours, flew to conferences across the country and began implementing a new strategy within his personal savings plan.
From there, he saw results; and so did Joey. Joey saw a very large uptick in savings, and, discovered that there were many more benefits to saving in properly structured whole life insurance policies.
- Guaranteed growth (not backed by the market)
- Tax-free access
- Tax-advantaged growth
- Competitive growth (2-5%)
- Compounding interest
- Creditor proof (in many states)
- Tax-free death benefit
The Wall Street Mindset has taught you to think “death insurance” when you hear “life insurance”. However, in this episode we are going to challenge you to see whole life insurance for what it really is.
Now, we will warn you, an everyday life insurance agent should not set these policies up for you. It is absolutely vital you work with someone who works exclusively with these policies, is certified to do so and only works with people like you.
With that being said, if you already own a whole life insurance policy, you may be underutilizing it! Depending on how it was structured when created and/or the age of the policy you may have opportunity on your hands.
Disagree about whole life as a savings vehicle? Tell us why below! We enjoy opposing perspective 🙂