Banks are among the biggest buyers of permanent cash value life insurance. They buy so much cash value life insurance that the Comptroller of the Currency of the United States of America regulates how much they can buy and keeps track of how much they own. The cash value of the policies that the banks buy and hold is considered a part of their Tier 1 Capital – the money that regulators consider the safest and that regulators require banks to maintain to protect the bank’s depositors.
“Interesting,” you think, “but what’s that got to do with me?”
First, recognize that banking is at the core of the general economy. Keeping banks solvent is essential to that economy since banks contol the flow of money. Many banks rely on cash value life insurance to support their solvency and their role in the general economy. Banks do not rely on equity investing for their Tier 1 Capital, they rely on cash, cash equivalents, government securities and cash value life insurance.
Why don’t the Behemoths, who want you to give them control of your money, recommend that you behave the way the banks behave? Why don’t they recommend that you first establish a foundation of secure Tier 1 Capital for your personal economy, including substantial amounts of cash value life insurance?
You can ask them, but they probably won’t give you a straight answer. They’ll tell you that cash value life insurance doesn’t give you a great “rate of return” or that it’s a bad investment. They’ll suggest that you only need enough money in your Tier 1 Capital account to cover your financial needs for six months. They’ll show you preformance data on the “market” and subtley suggest that you will achieve similar results…but. But, there are no guarantees and, if the “investment” path they suggest for you leads to a financial swamp and you lose all of your money, they are truly sorry but it’s not their problem.
Now, here’s a caveat. I am not referring to independent financial advisors who are properly schooled in the way economies work. A Behemoth is a larger organization that makes its profits from “money under management” and that has no financial incentive to sell you any product that does not deliver your money into their account. Some of the Behemoths refer to you – their “client” – as a “wallet.” Most mutual funds are Behemoths.
There are advisors all over America, however, who will show you a path that leads to the top of the mountain instead of into the swamp. They know how to make sure that your Tier 1 Capital is safe and supports your personal economy – food, shelter, health care, education, financial security, family, community, growth, retirement, legacy…advisors who are concerned about you as a person – not as a “wallet.”
If you’d like to know more about how these advisors deal with money issues, read Money for Life…in good times and bad. Discover an entirely unique and holistic approach that helps you get to the top of the mountain. Then, give us a call and we’ll direct you to such an advisor. www.TheMoneyForLifeBook.com
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