The infinite banking concept is a solid approach to building wealth, but using Your Family Bank takes it a step further because it addresses indebtedness, a big first step in recovering financial health. But to get started you need to select a participating whole life insurance company with a good history of solid dividend performance and low policy loan costs. It’s important to stay away from expensive “direct recognition policy loans.” After you eliminate debt, you can use your money for a variety of ventures whether college education, retirement planning or investing. Keep in mind that the vast majority of a life insurance company’s portfolio is in investment grade bonds, so to avoid redundancy, you can consider minimizing or eliminating bond positions in your portfolio. If your investments out perform your insurance policy, you have successfully arbitraged or leveraged your money…again in a tax advantaged way. Money opportunities may present themselves from time to time, so you can harness the power of liquidity in the mid-term. Many consumers attempt to lock in fixed rates of return in certificates of deposit. The money is illiquid, and you have to pay taxes regardless of whether you took constructive receipt of the earnings   Read more…