Want To Create Wealth?
The No.1 Strategy to Wealth Building
Most Americans consider saving to be the surest way to accumulate wealth. Due to this misinformation, they direct most of their savings into Wall Street and then wait hoping that their investment will blossom. In most cases, this strategy blows upon their face. The markets often collapse, and they take the hit. On the other hand, the uber-wealthy are constantly creating wealth and don’t seem to experience the same hiccups or risks. So what is their secret?
Unbeknownst to many, the wealthy do not follow the same path as the rest when creating wealth. They know that depending solely on Wall Street is too risky so they don’t do that. Instead, they have come up with ways that see them leverage their money and have it circulating in investment products. This is known as circular investing, and it’s what has the ultra-wealthy remain wealthy. Let’s take an in-depth look at circular investing and how it helps build wealth:
Money works for you
In the traditional investment strategy, you invest your money hoping you’ll get more money out. It is linear, and you sit passively with bated breath as a financial professional tries to find you a constant return-on-investment.
With circular investing, your money circulates through various investments, and this happens simultaneously. This cannot be achieved through financial products on Wall Street. Each of these investments is crucial for wealth creation if you want to create wealth fast.
Cash flow vs. Cash accumulation
With the usual investing, the spotlight is often on cash accumulation where you focus on growing the amount of money in the bank. To succeed at this, it means that one never spends the money. This is no way to grow wealthy. However, when you keep the money flowing through many investments you create a strong and highly leveraged cash flow.
Whole life insurance and circular investing
The wealthy have been known to use whole life insurance policies to support circular investing. How do they do this? They take advantage of the cash value in the policy. They borrow money for investment against their cash value to bankroll their investments. This means that the money one pumps into their policy is the same money coming out of your policy to fund their other investments.
Security and liquidity
For circular investing to be a success, there is a need for security and liquidity, and this is what whole life insurance provides. It offers security to be able to circulate the money through investment products. Additionally, borrowing against one’s whole life insurance policy cash value gives you access to complete, unrestricted liquidity.