What is the only financial vehicle that has never lost money year after year for the last 1400 years?
Here are some hints
- Walt Disney built Disneyland using it
- Ray Krok built McDonalds using it
- John McCain ran his presidential campaign using it
- Jimmy Patterson uses it
- Martha Stewart uses it
If you have never read the book Becoming Your Own Banker - Unlock the Infinite Banking Concept® by R. Nelson Nash, check this out this and then read the article.
Forbes Magazine published an article by John E. Girouard that had the following:
Forbes Magazine - A Financial Bunker for Scary Times - by John E. Girouard Feb. 10, 2009
"Suppose there was a financial instrument with a track record stretching back 1,400 years; that was so solid it could survive the Great Depression intact; that earned untaxed interest at a competitive rate; that could be borrowed against at will regardless of credit conditions; and that could be used by individuals as well as major corporations and banks as a safe harbor during economic turmoil?"
"You'd call it a financial bunker for scary times, and you'd be talking about mutual whole life insurance."
The article continues and says "Mutual or "participating" whole life insurance is the closest thing to owning your own bank.:
--You Own The Bank: Mutual insurance companies are owned by the people who buy the policies. These companies are the modern equivalent of mutual "societies" among European trade guilds of the 1600s. Guild members pooled their money to help each other and their families in times of sickness or death. Because mutual companies have no shareholders, they serve one constituency--the policyholders. Mutuals have no need to report good earnings every three months to justify a stock price, so there is no pressure for them to take on extra risk to make a profit.
--You Can Borrow Back Your Premium Payments: Because your premiums "belong" to you as a policyholder-owner of the company, you can borrow them back any time you want for any reason you need, regardless of your creditworthiness. The death benefit of the life insurance will be reduced by the amount you borrow, and you will lose the interest you would have earned. But you can choose to pay the interest as you would for any loan, except you are paying yourself instead of the stockholders of a bank. If you pay the loan back as well, the death benefit goes back up.
--Mutuals Offer Ironclad Guarantees: Few people realize that the insurance industry, dominated by mutuals, was the one sector that made it through the Great Depression without a disaster and with policyholders financially intact. The cash value and the death benefit are guaranteed and tightly regulated by the states. That means your cash value is there regardless of market conditions, and when you die your heirs will receive the full face value of the policy. While stockholder-owned insurance companies saw their values fall sharply last year (remember when we taxpayers bailed out AIG (nyse: AIG - news - people )?), the top mutually-owned insurers saw their book values remain stable or rise.
More Canadians and Americans will learn to embrace the Infinite Banking Concept® as they continue to seek out better and safer ways to protect and grow their wealth.