Having $10,000 in the bank in case of an emergency or sudden job loss is great.
But having it sit in cash, earning almost no interest at all, and getting gobbled up by inflation isn’t so great.
I always knew having money to handle unexpected expenses is super important so that you can avoid dipping into your investments. But it always bothered me that I was missing out on potential growth. I don’t like leaving money on the table.
But these days, I no longer have that problem because I figured out a better place to put my emergency fund: a Whole Life Insurance policy that’s optimized for early cash value.
The magic of using a Whole Life policy is that you get the best of both worlds: you can access most of the cash at any time AND the money actually earns something every year.
Now, instead of having a big bank balance that just sits there, I have an account that grows every year and that will continue to grow until the day I die.
In the meantime, I’m able to take out loans against the cash value of the policy and use that money to cover unexpected expenses or to pay annual bills or to make new investments.
Over time, the account will become a valuable asset that I’ll use to make bigger and bigger purchases, like our next car, and eventually help fund my retirement.
Can your savings account do that?