Understanding How Money Works
Our objective on this program is to highlight the key topics involved in money make money strategy:
Rule of 72 and interest rates
A simple formula popularized by Albert Einstein. It is a compounding rule to determine how fast your money grows.
72 / Annual Interest Rate = Years to Double
Example: try it yourself (pull out your calculator)
Now to your calculator
Borrowing debt as a source of income
Here in Canada, most people earn money through income which is taxable in ranges between 25% to 40%. Behold! We introduce to you: Cash Value Life Insurance as a source of income which has an interest rate of 3.9% (current rate) which is significantly lower than taxed income.
The Power of Overfunded Insurance Polices
“If you don’t find a way to earn money while you sleep, you will work hard for money until you die.” — Warren Buffet. Make your money work for you while you sleep instead of leaving it sitting in the bank. Overfunded insurance policy offers these benefits:
- Enhanced cash value
- Tax advantages
- Flexible access to funds
- Increased death benefit
- Faster progress to financial independence
2 Guaranteed Problems to Happen in Life
Problem 1: Event of Passing
Who is gonna pay the bills?
Answer: Life insurance
Problem 2: Growing old
Who is gonna take care of your income when you retire from a job?
Answer: Retirement investment
