The tragedy of myths is that they perpetuate themselves. Instead of figuring out that they are false we all get caught up in things that feel or sound good at the time and then we seek information that supports that perspective. We are following the feelings not discerning the truth of them.
If I said the world is made of cake, you would laugh at how ludicrous it sounds. If I said the world is flat however you might agree if you are part of the flat earth group, most would also agree that’s ludicrous. If I said I feel like a banana today.. you would laugh and say.. what.. that makes no sense.
That last part also applies when you have learned the truth of something and then listen to others that have no idea what they are talking about. Imagine what Warren Buffet, Bill Gates, Jeff Bezos, and many other wealthy individuals think when they hear the vast majority of people talk about money.
We’ve been told for so long things like it takes money to make money, high risk equals high return, etc. Yet where is the risk for a business when they go public? They create a stock and just about make money out of thin air(ya there’s a process but that’s just nit-picking which isn’t important).
The purpose of this example is to show that while the vast majority of us go around believing risk creates wealth, that’s not what is actually being done by the wealthy. Where is the risk for a bank making loans? The default you say? They didn’t loan their own money in the first place so how are they losing?
As you are reading this are you here more to read what is being said or are you in the mindset of trying to show me how I’m wrong and you are right? To what end? How does that improve your life and make you more prosperous? How many years have you been in that habit and where did you learn it from?
- How does this relate to whole life insurance?
Most of us have no real idea what whole life insurance really is or how it works. If you are a fan of some popular financial celebrity then they probably tell you never to get whole life insurance, which is in their best interest because they want you to get insurance from them knowing they won’t pay out on 98% of it.
Instead of listening to others, you think to have your best interest in mind, go out and study on your own. Study all viewpoints on the topic, finances, so you have a full view of the topic and then make decisions that are in YOUR best interest from a viewpoint of knowledge and not just feeling.
- Is your financial perspective debt focused?
Whole life insurance has great utility with its living benefits that make it a great way to grow your money tremendously over time. This is what many businesses and wealthy individuals have used for over many decades if not centuries. I recall being very focused on getting out of debt and that perspective was quite opposite of how I view money now.
This is important because if you are debt focused, generally from those I speak to and my own experience, you worry a lot about not having enough, lack, uncertainty, doubt, etc. This scarcity mindset will cause you to make decisions that put your true prosperity out of reach and keep you in a perpetual state of scarcity. Is that what you want? How long have you been doing and thinking about what you think about money? How many do you know that think the same way? Most important. when out of debt are they actually worry-free about money or still struggling? If so why are you still listening and doing what someone else told you to do?
- Do you look up to financial advisors that teach what you already believe?
Think of this for a moment. Many wealthy people don’t talk to anyone about what they do and are still wealthy, usually, they do the opposite of what the traditional financial viewpoint would suggest. Instead of looking for risk, they mitigate it to near 0. Instead of paying all their debts off, they use credit to build wealth taking one dollar and making it do the work of many.
They continue to get wealthy and remain anonymous, while on the other hand those that tell us all about getting out of debt, saving, working for retirement, term, and investing the difference.. are only wealthy because a huge population ALREADY believed what they had to say. So do you really want to listen to those that wouldn’t be wealthy unless they were also popular or do you want to look for real financial truths that the wealthy follow?
- Why is needs vs wants misleading?
First of all, we are all guaranteed to die. So the “need” is also guaranteed to be BENEFICIAL to whoever cares for our affairs after we pass.
Aside from that, if you got in an accident would you want more or less insurance? Be it health, auto, life, or whatever, I have never heard anyone say less. The traditional financial perspective we have been sold creates a perspective of scarcity and the word need fits into that making it more desirable to consider. That doesn’t mean it actually matters or discusses what you want to do or is in your best interests. Its a good sales tactic more than anything.
- If the majority of the wealthy use whole life insurance then shouldn’t you?
The answer here really comes down to: do you want to? Why wouldn’t you? The biggest answer I get here is because it “costs” too much. Which is another point of our general financial perspectives being focused more on price than on utility. What’s the cost of NOT having permanent life insurance? (answer: you’ll live 80+ years hopefully like all those you know, never out of debt always trying to do so, never fully happy about your finances, and constantly struggling)
How many friends and family members do you have that strive for the same outcome financially? Have any of them actually achieved financial freedom? If you consider being debt-free to be financially free then you still haven’t made it because you always have to pay property taxes so you are never out of debt.
In addition, as we age our expenses keep increasing and the power of the dollar keeps going down, so what happens if we have hyperinflation? What happens if you have tremendous medical expenses how do you pay for those?
The reason I bring this up is simply to give a good visual image of the difference between what most of us are doing financially vs how the wealthy view finances. Their focus is on constantly increasing their cash flow or residual income. If you gained more annual income from investments then the above worries are not worries, or at least far less.
- How can you use whole life insurance like the wealthy?
Whole life insurance builds cash value which is the big draw for companies and individuals. As you build cash value and take loans against the policy and then pay those loans back you balloon the cash value growth.
You can do this to start with by paying off debts so you free up cash flow and get your expenses under control. Or you can use the money to buy cash-flowing investments like real estate and then do it over and over again.
Getting a policy that is focused on max cash value growth is important especially if you want to start the loaning process in the first or 2nd year instead of 3 or higher.
Summary
In short, check your financial viewpoint and verify the truth for yourself instead of just accepting what you hear from others as truth because it feels good. Adding whole life insurance to your financial plans can only help.
Contact us today for a max cash value illustration at no cost.