Does Infinite Banking offer liquidity and accessibility for my investments?
Liquidity and accessibility are often overlooked traits when it comes to investment options.
The reality is, Infinite Banking can operate as an investment tool or a savings tool.
The difference between these two is that an investment is used for growth, and a savings is used to store safe money.
But Infinite Banking does both of these rather well. For some, they put money into their Infinite Banking policy with no intentions to touch their money until retirement or in case of emergency.
This makes cash value whole life insurance a great savings tool.
However, having options is what makes Infinite Banking so valuable.
Do What You Want, When You Want
Some of us may already know that we want to invest in our own business, real estate, or some other investment option in the future.
Some of us may say right now that we don’t want to do these things. However, there is always the possibility that we will change.
This is where liquidity and accessibility come into play.
With a 401k or IRA we do not have these options. And, unless we are willing to pay the penalty, we cannot access our money until we retire.
On the investment side, this is a huge disadvantage. What makes a smart investor is the ability to make investment decision when they arise.
Even for those who say they don’t want to be investors there may be opportunity to help a friend or family member start a business, or other investment opportunities that may not be clear right now.
But they may come up.
And you may need the money to be accessible.
But it’s this option that makes Infinite Banking so powerful. You have complete and total access to your money–called liquidity.
This means you can access money when you want, and invest in what you want for as long as you want.
So, Infinite Banking can be your holding account when you don’t have investment options that make sense.
And, with cash value life insurance already earning you a likely 4-6 percent, you aren’t rushed into making bad investment decisions just to earn interest on your money.
This is why having liquidity can give you a powerful position where you are able to make the best financial decision for yourself regardless of what they are.