“I Own My Bank” has released a guide explaining how individuals may use whole life insurance policies as a vehicle to reduce their tax liabilities.
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The newly released guide outlines the infinite banking concept, which uses the accrued equity of whole life insurance policies as dividend-paying assets. Such policies can generate liquid cash value that can be used for making large purchases and reducing taxes.
More information can be found at https://www.iownmybank.com/blog/b/taxes
“I Own My Bank's” recently published report educates readers about a centuries-old strategy that has been used by famous entrepreneurs like Walt Disney, J.C. Penney, and Ray Kroc to grow and protect the wealth they created through their businesses by reducing their tax liability.
The infinite banking concept was established by the late economist R. Nelson Nash after studying the spending habits of American families. He found that 20 cents of every dollar spent went toward car purchases and maintenance. Realizing such costs add up over time, especially with traditional financing methods, Nash wanted to find a better financing option.
Nash called that better option infinite banking, which leverages the equity-accrual capabilities of whole life insurance policies. By making regular payments into these policies, policyholders can accumulate equity that they can borrow against for major expenses like tuition or buying a new car.
Because this equity accrues on a tax-free basis, the policyholder will not have to pay taxes on accumulated interest and dividends within the policy as long as the policy remains in effect. If the policyholder withdraws a loan from the whole life insurance policy’s cash value, it is not considered a taxable event because technically the policyholder is borrowing from the life insurance company.
However, other uses of the whole life insurance policy may be taxable, such as a withdrawal from, or distribution of, the policy’s cash value. For these uses, policyholders should work with an infinite banking practitioner or a tax professional to ensure they are using the policy in the most tax-efficient way, according to the guide.
The infinite banking practitioners at “I Own My Bank” can provide such assistance. “They’re an awesome company,” one satisfied client said. “Their infinite banking concept allows you to plan for financial freedom. They have an excellent staff that’s always willing to help answer any questions that may arise.”
Interested parties can learn more at https://www.iownmybank.com/blog/b/taxes
Contact Info:
Name: Will C Ellis
Email: Send Email
Organization: I Own My Bank®
Address: 3111 New Jersey 38 Ste 11 #233, Mount Laurel Township, NJ 08054, United States
Website: https://www.iownmybank.com/blog/b/car
Source: PressCable
Release ID: 89105456
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