Magnify Wealth Podcast with Scott Gannon
Please take a moment to see if this resonates with you. For 20+ years, I put mine and my client's money into mutual funds. The risk and uncertainty were a constant stress. In 2002, then again in 2008, markets lost about half their value. Were you or someone you know stressed out and frustrated? I was! More than a decade ago, I committed to find a more certain, predictable, and safe way to build wealth before another drop happened again. I found it in the risk management part of my business. This is where our proprietary process, The Asset Multiplier Method, was created. Now we concentrate on protecting capital and teaching business owners how to control the liquidity and flow of their money. We structure your capital to be in position to multiply its uses...never leaving your dollars to only a single purpose. Structured properly, you get liquidity, use, control, and certainty.
Magnify Wealth Podcast with Scott Gannon
Policy Loans Explained! | How They Work and What You Need to Know
Cameron and Scott discuss how policy loans, particularly in the context of life insurance policies with cash value, can enhance financial strategies. The main concept they explain is that with these policies, you can borrow against your cash value (rather than from it) and still allow the original amount to grow tax-free.
Key highlights include:
- Double-Dip Effect: By borrowing against your cash value, your funds continue to grow within the insurance policy while you use the borrowed money to invest in other income-generating assets.
- Flexibility: These loans offer flexible repayment terms, no credit checks, and no application process.
- Leverage: The discussion emphasizes how policy loans allow you to expand both current and future cash flows
- Risks: If interest on the loan compounds beyond the policy’s cash value, it could cause the policy to lapse.