Where Should You Store Your Wealth?
In Brief:
Your Wealth has to reside somewhere. Where you store it determines how its value changes, how you can access that value and what happens when you use it. The ideal place to store your capital is safe, it is liquid, it grows, you control it, and you can access it without liquidating and interrupting the growth.
Where you store your wealth affects everything that follows
Before you can use capital and repay it, that capital must reside somewhere. Its location determines when you can access it, whose approval you need, and what happens when you use it
In addition to the needs of life, your banking system can finance a vehicle, a business, real estate or other investments. The storage vehicle is the starting point.
Five Questions to Ask About Storage
Safety
Will the wealth stored there be there when you need it?
Liquidity
Will you be able to access the wealth when it is needed?
Control
Who sets the terms of use and conditions for access and repayment?
Growth
Is the purchasing power of the stored wealth preserved and does it grow?
Access
How is the wealth accessed? Do you sell or withdraw or do you collateralize?
Common Vehicles
Households also collect, store, and distribute something valuable. They earn income, accumulate savings, and use that money to meet needs or pursue opportunities.
| Storage Option | Safety | Liquidity | Control | Growth | Access |
|---|---|---|---|---|---|
| Checking/Savings | High | High | High | Low | Withdraw |
| CD, Treasury | High | Low | Moderate | Low-Mod | Sell |
| Money Market | High | High | High | Low-Mod | Withdraw |
| Stocks, Bonds, Funds, ETFs | Low | High | Moderate | Varies | Sell |
| Qualified Plans | Varies | Low-Mod | Low | Varies | Sell |
Less Common Vehicles: Assets
| Storage Option | Safety | Liquidity | Control | Growth | Access |
|---|---|---|---|---|---|
| Gold | Moderate | Moderate | Low | Moderate | Sell |
| Real Estate | Moderate | Low-Mod | Low | Variable | Sell or HELOC |
| Whole Life Insurance | High | High | High | Moderate, tax deferred | Policy Loan |
Access Your Wealth Without Liquidating
A home equity line of credit (HELOC) lets you borrow against your house without selling it. In this you access your stored wealth without liquidating. The loan does not itself change the home’s market value. You retain ownership and participate in future appreciation—or depreciation. The loan reduces your net equity.
Borrowing preserves the asset while making the financing cost visible. Paying off the loan ends the interest expense.
Keep the asset. Understand the cost. Examine the terms.
But Who Controls Your Access?
A HELOC illustrates the principal of collateralized access, but it is not the best solution.
You must first apply and qualify.
You generally can only access up to 80% of your equity.
Available credit can be frozen or reduced.
Owning wealth does not automatically mean you control access to it.
Why Participating Whole Life?
Where you store wealth shapes how you can use it. We use properly designed participating whole life because it brings safety, liquidity, control, and growth together with the ability to access capital without selling the underlying asset. Here is how it answers the five storage questions.
Safe
Cash values are guaranteed by contract and do not fluctuate with the stock market. Those guarantees are backed by the insurer.
Liquid
As cash value builds, it creates borrowing capacity available for needs & opportunities—without withdrawing, selling an asset, or waiting for a buyer.
Control
Access policy loans without new credit qualification or explaining your purchase. You determine the repayment schedule within the contract’s terms.
Growth
Guaranteed cash values grow according to the contract. Non-guaranteed dividends can purchase paid-up additions, increasing cash value and death benefit.
Access
Use your policy as collateral instead of liquidating it. Guaranteed values continue under the contract, while the loan carries interest and reduces net available value.
Next: The Movement of Money
Putting the Capital to use
Now that your capital has a home, the next step is putting it to use. In the Infinite Banking Concept® this doesn’t happen through selling or withdrawing, but through collateralization – policy loans.
Build a Capital Base That Can Serve Repeatedly
The Infinite Banking Concept® provides a process for storing capital, accessing it for use, and restoring financing capacity through disciplined repayment.