What do 3,800 Banks do with their money and why should you be doing it too!
Bank Owned Life insurance (BOLI)
What does the Bank do with your money once you deposit it?
One thing we know they do is that they buy bank-owned life insurance, earning between 6-15% average and you don’t have to take my word for it.
FDIC website: https://www.fdic.gov/about/
A few of the well-known banks that hold BONI
- US bank $5 billion
- Chase bank $11 billion
- Wells Fargo $18 billion
- Bank of America $22 billion
In total, 3800 Banks own about $190 billion in bank-owned life insurance
What do they do after they invest? They loan it back to you and me!
One of the reasons they do this is because life insurance is a very safe place to put your money. You don’t lose money when the market crashes; however, you get the benefits of the gains up to a cap.
So now they’re loaning it back to you for credit cards, boat loans, car loans, mortgages, lines of credit, and if you add all that up, they’re making double-digit interest back from us by loaning us our own money at much higher rates than they’re paying us!?
So can we become our own bank?
Yes! You can take some of your own money whether it’s in a lump sum or a monthly deposit or a combination of both and set up your own system using either Indexed Universal Life (IUL) or Cash Value Whole Life (CVWL) insurance policy(s).
The policies I’m particularly fond of right now are earning between 4% and 8% on average. You don’t have to worry that you’re going to lose money in the market because they have floor which is typically 0%, so when there is down year in the market there is a built in safety net.
Additionally there is no 59 ½ age rule on when you can take the money out without a penalty so you can get your money out at any age for any reason without a tax penalty! Because it is Life Insurance, it has an Income Tax Free death benefit for your family and includes many additional Living Benefits like Critical Illness, Chronic Illness and even Terminal Illness protection so you can get money out from the life insurance death benefit prior to dying!!
And here’s a big kicker when you structure these policies correctly, you can set up so the money you are eventually taking back out of the policy, which includes your own principle that you put in and the interest that you’ve earned can be 100% tax free!
That’s another brick in the financial wall you’re building around your family!
Let do this!!!
Start Your Free Wealth Coaching: Text me at 508-905-5561 with a couple dates and times and let’s begin building a financial wall around your family.
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