Dear FutureMoneyTrends.com Member,
Checking and savings accounts aren’t paying out anything. The minuscule interest rate is insulting. Everywhere you look, investors are looking for yield. Many baby boomers have chosen to chase some of the most popular dividend names on Wall Street, but this opens up your savings to extreme volatility.
So if you want a cash position, where do you go?
The affluent, the top banks, and the largest fortune 500 companies are hoarding their money in 7702 accounts, or what we have been calling our True Hedge strategy. It is a strategy that uses our cash savings to hedge against inflation and deflation.
However, for the purposes of this essay, let’s just focus on a straight cash position. One where you set up an insurance policy with cash value, and receive about a 5% internal rate of return. You can access the money anytime you want, and these types of companies have paid out dividends every year since the early 1800s.
A whole life policy, in my opinion, meets all the criteria you want for where to stash cash:
- Instant liquidity
- Grows faster than inflation
I know this is unconventional, but having a cash position is important for financial security and peace of mind. It also helps you during times of great opportunity. Having the cash provides you with the courage to take advantage of opportunities in a time of crisis.
Now, unlike a bank, where you can just swipe your debit card or transfer the money online, using an insurance vehicle forces you to pick up the phone and make a call for withdrawals. Now, the call only takes 5 minutes, but the act of picking up the phone and calling to make a withdrawal oftentimes creates the perfect barrier between you and your money. Let me expand… easy access is easily spent, but by just creating that 1 very small hurdle, a phone call, may help you think twice before using up your savings.
Insurance has been around for thousands of years, and one of the oldest American companies today is a mutual insurance company that started before the Revolutionary War. They’ve been through multiple wars and currency changes, but are still around today, paying out its profits to its whole life policy holders.
To learn more about the benefits of whole life accounts or our True Hedge strategy, visit http://www.futuremoneytrends.com/secrets-of-the-rich
Editor’s Note: Get extra income ideas and investment ideas that are completely outside of the banking sector in our premium membership letter. You can also find our Forever Stock portfolio. These are the best businesses in the world; ones that can help you create a dividend cash flow machine!
Weekly Wealth Digest Video Episode 60
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