Over the next 80 years, if all goes well, I’m going to turn a $60,000 investment into $4 million for my future grandchildren.
How?
I took out two whole life insurance policies on my twins. I’ll pay $3k each year ($1.5k each) for the next twenty years for a total investment of $60k.
By the time they’re in their early twenties, and the policy premiums are all paid, they’ll already each have a cash value of $60k (that can be borrowed against) and a death benefit over $350k.
If they both go on to lead long, full lives, by their 80s the death benefit will be close to $2 million each (which can then be passed to their kids, my grandkids, tax free).
Along the way, they’ll be able to use the cash value in their policies to take out loans to purchase cars, or pay for tuition, or put down payments on homes. They’ll be much less reliant on banks for credit of any kind and will be able to make purchases in the most efficient way possible.
If they manage the policy correctly and regularly pay back those loans, by age 65 they’ll each have a cash value of $600k that can be borrowed against to help fund their retirement in a tax-advantaged way.
Even better, they’ll even be able to use it to help fund the next generation of policies, which will be used to continue to build and pass down wealth through the family.
People think you need to be super rich to grow intergenerational wealth.
You don’t.
You just need a long-term mindset, patience, and to know how to use whole life insurance. It’s a powerful, powerful tool for building intergenerational wealth in a tax-efficient way.
If you’d like to talk about how you can set up a similar system for your own family, shoot me a message.