What is the Perpetual Wealth Strategy?
The American Dream is your own version of success. Typically, it includes financial freedom, prosperity
and even upward social mobility, regardless of what class you were born in or where you live. Building
wealth isn’t easy when you don’t have much to invest. Instead of putting in more hours at work,
generate passive income with dividend paying whole life insurance, an asset often known as the
perpetual life strategy.
Whole Life Insurance Plus Dividends.
Whole life insurance is a policy that offers benefits for your “whole life.” It often has a cash value that
you can borrow against while you’re living. Some insurance companies offer participating whole life
insurance. This means that the policy pays dividends when the company makes a profit. Although
dividends aren’t guaranteed, you can find many insurance companies that paid out dividends for over
100 years on participating whole life insurance policies.
Benefits of Whole Life Insurance
Whole life insurance is often touted as a lousy place to put your money, but the financial experts who
say this are not talking about participating whole life insurance policies. Here are some of the benefits of
this type of policy:
- Guaranteed death benefits for your family.
- Premiums do not increase, which protects you against inflation.
- The ability to borrow against the cash value of the insurance policy.
- Tax-deferred cash value accumulation.
- Death benefits can be taken by the policy owner in retirement or when he or she has a chronic
condition.
Why Participating Whole Life Insurance Can Be an Investment
One of the key elements of a dividend paying whole life insurance policy is the ability to borrow against
the value of the policy. This financing option typically isn’t reported to the credit bureaus, nor is
dependent on your credit score or other assets. You can bypass banks and finance companies when you
need financing. Ray Croc used this feature to help him start McDonalds. Walt Disney also used this type
of account to begin his company.
Plan for Your Future Today
Real estate is considered one of the best investments in the world, but your financial portfolio should be
diversified instead of having all of your eggs in one basket. The perpetual wealth strategy is the brainchild of Patrick Donohoe, the author of “Heads I Win, Tails You Lose: A Financial Strategy to
Reignite the American Dream.” You can use his strategies to build a foundation for your family.