Unleash the Power of Compound Interest

Dear Reader,

Everywhere you look, investors are looking for yield.

It’s all going according to plan for central planners, forcing tens of millions of investors into chasing popular dividend names on Wall Street and opening up savers to gut-wrenching volatility.

But it doesn’t have to be this way. I save money every day, and it’s considered the safest place in the world to keep cash.

In fact, it’s so safe that the biggest account holders are the large banks themselves.

The affluent, the top banks, and the largest fortune 500 companies are hoarding their money in 7702 accounts.

We’ve all heard of these – it’s essentially a place to keep cash, wrapped in an insurance vehicle.

The retail name for these accounts is whole life insurance. 

Now, 99% of regular insurance agents don’t have a clue about how to set these up properly. And to be perfectly honest, they probably don’t care, either, because if done the conventional way, it makes them a hefty commission.

In order to set one up correctly, you’ll want to seek out a specialist, so that you’ll receive a 5% internal rate of return. And you will even have full access to your cash while it continues to compound and generate dividends from the insurance company.

The key here is you aren’t buying the whole life insurance for the life insurance part.

If you want life insurance, buy term insurance.

When done right, whole life is a wealth-building strategy for the rich.

I personally have 15 policies, which include my wife and three children.

Here are the important advantages of setting up a whole life policy correctly.

1. Principal protection is guaranteed
2. You have full access to your cash
3. It’s lawsuit-proof (even from the IRS)
4. It’s private, not a bank or Wall Street
5. As a whole life owner, you receive dividends from the insurance company
6. Internal rate of return is compounded at 5%+
7. It’s tax-deferred

If this is your first time hearing about this, then it really is a journey. I spent months researching this prior to setting up my first policy.

The book Bank on Yourself is probably the simplest instruction guide, and I also like Paradigm Life for their education. Jennie Steed is my personal agent at Paradigm Life, so I know these people well.

I receive zero compensation from her (no referral), although she has sent me a few Ruth’s Chris gift cards (which, by disclosing this, I’ll now have to share with my partners, except for the one in Israel – I can just FaceTime him the next time I’m at Ruth’s).

My mentioning of Paradigm Life is because they really are the go-to experts for this industry and they can really deliver the education you’ll want prior to committing to this savings strategy of the rich.

The biggest benefit to whole life is perhaps the most confusing, so I am hesitant to even bring it up, but I think this letter would be incomplete if I skipped it.

With a whole life policy done correctly, you can dual compound your savings.

The cash value you have in your policy can be used as collateral, meaning the insurance company will loan you money with essentially zero questions asked.

No credit check is needed, because if you default, they have your cash. So you are a zero-risk borrower.

To be clear, you are NOT borrowing from yourself – the loan is from the insurance company, usually at a very competitive rate. Today, it’s around 5%.

No payments are even required. As long as you keep your policy current, the terms to pay it back are whatever you decide.

These policy loans offer you a chance to supercharge your compounding strategy.

Once the loan request is sent via a check, you can use that money for whatever you want.

My recommendation is to use it to buy more income.

Use the income generated from your new investment to pay your policy loan off on your own schedule and benefit from using the same $1 twice!

For example, I could deposit $10,000 into a whole life policy and enjoy the safety of principal protection and guaranteed growth, while at the same time, I can use that $10,000 as collateral with the insurance company for a loan of $10,000.

I can then take the $10,000 loan I’ve received and use it in my PeerStreet.comor account, where I receive an 8 to 12% yield.

Using the income to pay down your loan, while at the same time benefiting from having this additional yielding investment is a solid strategy.

Dual compounding is a beautiful thing, and it is equivalent to adding steroids to your savings.

Which is why cash value whole life insurance is something we highly recommend to all of our readers.

Next week, for our Weekly Wealth Digest, I’ll be introducing a new 7% yielding investment idea.

It has nothing to do with Wall Street, and everything to do with enjoying income that, for a long time, was exclusive only to ultra-high net worth investors.

Have a great weekend!

Best Regards,

Daniel Ameduri

Legal Notice: This work is based on SEC filings, current events, interviews, corporate press releases and what we’ve learned as financial journalists. It may contain errors and you shouldn’t make any investment decision based solely on what you read here. It’s your money and your responsibility. The information herein is not intended to be personal legal or investment advice and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought.