This is a process I wish I’d known about in my 20s when graduated from university and first started in the workforce. This process allows you to take more control of your cash flow away from the banks.
We finance everything we buy.
If we save for major purchase, such as an annual RRSP contribution or automobile purchase, we are normally earning interest at a very low rate. Because we want your money secure, we have given up the opportunity of earning a decent after-tax rate of interest.
If we instead borrow for a major purchase, we instead pay a high rate of interest. Maybe we take out an unsecured loan from the bank to pay for something we need, or we borrow money using a credit card for a few months to find a vacation. Either way the bank benefits by borrowing at a low interest rate from consumers, and lending to other consumers at a high interest rate. Fair enough, that is their business, but do you need that service? Maybe there is a better way?
What if you could save your money in a financial product that earns several percent more than a savings account with 100% tax deferral, has no investment risk, and keeps on growing when you decide to use the money to finance your expenses?Participating Whole Life insurance has those characteristics.
© 2016 Doug Ransom - Insurance Advisor