I call it the Insurance-based Investment Strategy. There are plenty of resources out there that talk about this strategy in detail. To read more about it, you can start with these books:

  • Heads I Win, Tails You Lose – by Patrick Donohue
  • Money. Wealth. Life Insurance – by Jake Thompson
  • Live Your Life Insurance – by Kim D. H. Butler

These books mentioned above promote the idea that instead of borrowing money from the bank for whether you want to buy a new car, for a vacation, or even for an emergency, you borrow from your own money, which has been invested in life insurance.

To be as succinct as possible about this concept, IBIS promotes life insurance investment as a vehicle for a stable, reliable, and even guaranteed growth as opposed to the unpredictable nature of the stock market. Instead of keeping your emergency fund in a savings account that gives you dismal annual percentage yield (APY), or having a 529 plan for a college fund, or even just to save money for investing, your foundation, you open a life insurance account that accumulates cash value. Patrick Donohue calls it the Wealth Maximization Account, some of the benefits which are:

  • competitive growth of investment
  • tax favorability
  • and insured or guaranteed from loss.

Depending on which type of life insurance you choose to invest in, and depending on which insurance company you buy your life insurance from, your money either grows at a fixed, guaranteed rate, or grows as the market grows but does not drop when the market drops, or even continue to grow even as the market drops.

If Warren Buffet advises one to never lose money, these types of insurance-based investment strategy is probably the only type of investment where zero loss is a certainty.

If you want to know more about this type of investment strategy, don’t hesitate to email us at sales@ascend99.com or call (312)469-0016.

Published by ascend99inc

Hello! I've served clients for about 20 years now. Recently, I've focused my mission to help families ensure their financial future. Please don't hesitate to contact me so I may be able to help you and your family.

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