Posts by Tax Free Strategy

Infinite Banking Explained Simply The Infinite Banking Concept (IBC) is a cash flow management strategy that involves becoming your own “banker” by using a specially designed, overfunded dividend-paying whole life insurance policy to accumulate wealth and provide yourself with tax-free loans. How It Works for Beginners Fund a Policy: You purchase a permanent life insurance…

History of Investing in the Market since 1900 until Today If you invested in the US stock market from 1900 through today, your average annual rate of return would be approximately 9.466% (with dividends reinvested). Adjusted for inflation, the real average annual return would be around 7.031%. Don’t forget the tax you have to pay.…

How to Build Tax Free Wealth Without Market Risk The Bank On Yourself strategy uses a specially designed, high cash value, dividend-paying whole life insurance policy to build tax-free wealth with guarantees that your principal and gains are not lost to market downturns. It is presented as a method to create a secure financial foundation…

You can borrow from a permanent life insurance policy cash value to fund investments, but it involves specific steps and important risks to consider.The process involves taking a loan from the insurer, using your cash value as collateral. The Process Verify your policy type: This strategy only works with permanent life insurance policies (like whole…

Ted Benna, “Father of 401K” says 401K Plans are a MONSTER. It caused quite a stir when the man who is credited with being the “father of the 401(k),” Ted Benna, announced that he’d put a substantial portion of his own money – “probably the biggest part of my wealth” – into what is most…

Bank on Yourself 3 Myths The idea of “banking on yourself” (often known as the Infinite Banking concept) involves using a specific type of whole life insurance policy to create a personal banking system, allowing you to borrow against your own cash value rather than traditional banks. Misconceptions, or “myths,” often deter people from adopting…

How Much Should I Invest The decision between starting infinite banking with $500/month or $1,000/month depends on your current budget, long-term financial goals, and the amount you can commit to consistently over the next 20-30 years. There is no single “right” amount, but the key is to be consistent with your contributions. Key Considerations Affordability…

Why Investors Lose Money Overall in a 401K Plan Investors primarily lose money in 401(k) plans due to poor behavioral decisions, such as emotional investing and panic-selling during market downturns, and by making fundamental mistakes like not saving enough or paying high fees. Key reasons why investors may lose money in their 401(k) include: Emotional…

Retirement savings are one of the most important parts of financial security. When individuals contribute to their 401(k) or IRA, they often think all of their savings are completely theirs. This assumption can be misleading. Knowing the details of your retirement accounts is crucial for understanding your overall financial situation. Here are three major reasons…

Business owners can use several legal, IRS-approved strategies to minimize taxes and protect millions in wealth, primarily through maximizing deductions &, leveraging retirement accounts. Retirement Plan Maximization: You reduce your current taxable income by contributing large amounts to high-limit, tax-advantaged retirement accounts like Solo 401(k)s, and SEP IRAs. Qualified Business Income (QBI) Deduction: Eligible owners…