{"id":135,"date":"2021-12-31T17:21:30","date_gmt":"2021-12-31T17:21:30","guid":{"rendered":"http:\/\/fitness3.mythemecloud.io\/?p=135"},"modified":"2023-02-18T04:56:40","modified_gmt":"2023-02-18T04:56:40","slug":"wealthy-people-stay-rich-using-life-insurance","status":"publish","type":"post","link":"https:\/\/texaslifegroup.com\/2021\/12\/31\/wealthy-people-stay-rich-using-life-insurance\/","title":{"rendered":"How Wealthy People Stay Rich Using Life Insurance"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"135\" class=\"elementor elementor-135\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2e37ae34 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2e37ae34\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5ed5d7ae\" data-id=\"5ed5d7ae\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3e4f79ed elementor-widget elementor-widget-text-editor\" data-id=\"3e4f79ed\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>What are the three marvels of wealth\u2013and how do millionaires use those marvels under a tax-free umbrella? Read on for insights into opportunities you may not have known existed. Soon, you too will know how millionaires build wealth using life insurance.<\/p><p>You may have heard me talk about millionaires like Walt Disney, James Cash Penney (founder of J.C. Penney), and Ray Kroc (who started McDonald\u2019s)\u2013all wealthy, savvy people who turned to their life insurance to build wealth and rescue their enterprises in times of need.\u00a0<\/p><p>What do people like these millionaires know, and how do the three marvels of wealth play into it all?<\/p><p>Let\u2019s start with some of the key elements of prudent investing. These are crucial to learn if you want to know how millionaires build wealth using life insurance. Millionaires know that they want to utilize financial vehicles in their portfolio that can pass what I call the LASER Test (which stands for Liquid Assets Safety Earning Returns, meaning the financial vehicle offers sufficient liquidity, safety, and predictable rates of return\u2014with tax advantages as icing on the cake).<\/p><h2>THE THREE MARVELS<\/h2><p>They also want to leverage financial vehicles that can deliver the three marvels of wealth accumulation:<\/p><ol><li aria-level=\"1\">Compound interest<\/li><li aria-level=\"1\">Tax-favored accumulation<\/li><li aria-level=\"1\">Safe, positive leverage\u00a0<\/li><\/ol><p>The first two are pretty self-explanatory, but let\u2019s talk a little more about leverage, or the ability to own and control assets with very little or none of your money tied up or at risk in the asset.\u00a0<\/p><p>Personal financial disasters usually occur when one is highly leveraged with very little liquidity. The principle of leverage isn\u2019t bad in and of itself\u2014actually it is the very essence of how money works.\u00a0<\/p><p>Safe leverage has created untold amounts of wealth in the world where a \u201cwin-win\u201d is created again and again. When institutions like banks or credit unions borrow OPM (Other People\u2019s Money) and pay a low interest rate to people who \u201clend\u201d it to them (when they deposit their money into the bank for savings), the banking institution then turns around and loans that money at higher interest rates to earn a net spread.<\/p><p>Earning interest is a win for the saver, while paying interest to the saver is a win for the bank, because they then loan out the same money at a higher rate. If a bank pays 1%, 2% or 3% interest on savings accounts, they turn around and loan that money at 5%, 6%, or higher. On just $1 million they may pay only $10,000 to $20,000 of annual interest (at 1% or 2%), but they are earning $50,000, $60,000 or more of interest (at 5%, 6% or more).<\/p><p>Just like banks and millionaires, you can put the three marvels to work for you.<\/p><h2>LASER FUNDS \u2013 THE ANSWER TO THE THREE MARVELS<\/h2><p>So where do savvy millionaires and even billionaires keep their serious cash and continue to build wealth? Many of them use properly structured, maximum-funded indexed universal life insurance policies, or what I call LASER Funds.\u00a0<\/p><p>Now what is that? In short, under IRS tax codes, a LASER Fund allows you to put the most money into a life insurance policy with the least death benefit; allows you to fund it as fast as the tax codes allow (typically four to seven years); your money can grow tax-advantaged; you can borrow money from your policy income-tax-free; and when you pass away, your death benefit can transfer to your heirs income-tax-free. (For more on LASER Funds, see<a href=\"https:\/\/3dimensionalwealth.com\/what-is-indexed-universal-life-and-how-does-it-work\/\">\u00a0this blog article<\/a>.)<\/p><p>We work with millionaires who have as much as $1 million, $5 million, and $10 million inside their LASER Funds. They can utilize leverage to borrow money from their policies for just about anything they need. They may pay, say 5% interest, to the insurance company with an Alternate Loan on their LASER Fund, while their money is still earning as much as 10% historically.\u00a0<\/p><h2>Connecting the Dots: How Millionaires Build Wealth Using Life Insurance<br \/><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-medium wp-image-699\" src=\"https:\/\/texaslifegroup.com\/wp-content\/uploads\/2023\/02\/stacks-coins-arranged-bar-graph-300x191.jpg\" alt=\"\" width=\"300\" height=\"191\" srcset=\"https:\/\/texaslifegroup.com\/wp-content\/uploads\/2023\/02\/stacks-coins-arranged-bar-graph-300x191.jpg 300w, https:\/\/texaslifegroup.com\/wp-content\/uploads\/2023\/02\/stacks-coins-arranged-bar-graph-1024x652.jpg 1024w, https:\/\/texaslifegroup.com\/wp-content\/uploads\/2023\/02\/stacks-coins-arranged-bar-graph-768x489.jpg 768w, https:\/\/texaslifegroup.com\/wp-content\/uploads\/2023\/02\/stacks-coins-arranged-bar-graph-1536x978.jpg 1536w, https:\/\/texaslifegroup.com\/wp-content\/uploads\/2023\/02\/stacks-coins-arranged-bar-graph.jpg 2000w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/h2><p>So let\u2019s connect the dots here. Want to know how millionaires build wealth using life insurance? They understand how money really works. They are their own banker, so to speak. So as they accumulate money inside of a tax-free umbrella, their LASER Fund.\u00a0<\/p><p>If they ever want or need to access money, do they withdraw it and give up earning tax-free interest on their money? No. They leave their principal inside their LASER Funds as collateral for their loans, and they borrow money to grab a piece of real estate they want, or start a business venture, or pay for a grandchild\u2019s college education.\u00a0<\/p><p>Millionaires build wealth using life insurance by taking advantage of the three marvels of wealth accumulation that a LASER Fund can provide when structured properly. They can do so with the peace of mind that comes from a LASER Fund:<\/p><ul><li aria-level=\"1\">Liquidity \u2013 The ability to access their money whenever needed<\/li><li aria-level=\"1\">Safety \u2013 The historic safety of insurance companies as proven financial institutions, as well as the safety of principal with a guaranteed 0% floor during economic downturns<\/li><li aria-level=\"1\">Predictable rates of return \u2013 Historically 5% to 10% returns, again with that 0% floor in volatile markets<\/li><li aria-level=\"1\">Tax advantages \u2013 The ability to borrow money income-tax-free for retirement income, business ventures, real estate purchases, etc., as well as the ability to transfer the death benefit income-tax-free to heirs upon your passing<\/li><\/ul><p>The good news is you do not have to be wealthy to afford a life insurance policy that will help you accumulate wealth. Contact the Texas Life Group today and one of our specialists will walk you through your options.\u00a0<\/p><p>Andrew, D., 2021. 3 Dimensional Wealth: &#8220;How Millionaires Build Wealth Using Life Insurance&#8221;, Ref: <a href=\"https:\/\/3dimensionalwealth.com\/build-wealth-using-life-insurance\/\">Link<\/a><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>What are the three marvels of wealth\u2013and how do millionaires use those marvels under a tax-free umbrella? Read on for insights into opportunities you may not have known existed. Soon, you too will know how millionaires build wealth using life insurance. You may have heard me talk about millionaires like Walt Disney, James Cash Penney 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