Conventional wisdom suggests the most savvy money manager never borrows money for the things he or she needs. It reminds us that the interest paid on a debt is nearly always greater than the interest paid on an investment.
In the 21st century, having a plan to avoid borrowing money from banks is still the best idea, but why start over with savings after you’ve paid for that thing you saved for?
Howard’s philosophy suggests:
- Instead of pouring money into savings with the plan to pull it back out to pay for something (a car, a dream vacation), use your whole life policy as collateral to borrow the money you need.
- Instead of taking a bank loan to make a major purchase, borrow from the insurance company, using your whole life policy as collateral.
Take the uncertainty out of your financial life. Use the value and benefits of a whole life insurance policy to provide the collateral necessary to borrow the money you need — keep the money you’ve saved — and pay back the loan to the insurance company. Call Howard Silvermintz and ask him to explain how he bought two cars using this approach.