Are you looking for a safe way to leverage your way to wealth? If so, the Capital Avalanche strategy is for you. With this method, you can unlock predictable and replicable double-digit returns while enjoying the benefits of maximum tax-free income and maximum possible flexibility and liquidity. Using the Capital Avalanche strategy, you can enjoy the leverage that you need to continue growing your capital while earning enough to surpass the interest accrual rate. Below, we explore how you can start using the strategy, and offer you insights for your personal financial success.
How to take advantage of the Capital Avalanche financial strategy
If you’re a high earner, it’s likely that you have your money stored up for emergencies, a rainy day, or because it’s the “right thing to do.” That sum is going to continue to grow in your savings account…but are you maximizing your potential to make your money work for you? If the answer is no, or if you aren’t sure, it may be time to consider using the Capital Avalanche financial strategy. All that you need to begin using this method of wealth growth is a lump sum in any side account. Read on to learn how to employ this simple, two-step strategy.
1. Move your lump sum to a life insurance policy
While this can feel overwhelming due to the premiums you’ll have to pay, bear with us. This system is designed to automatically cover the cost of the premiums of the following year, and the year(s) after that. By putting your liquid sum of assets into a life insurance policy, such as a whole life policy, you’ll allow the value to grow at a faster rate. Eventually, the speed of growth that you can get from this type of strategy can outpace the interest that will accrue — leaving you in a positive loop.
2. Open a line of credit through your bank for liquidity and accessibility
Now that step one is complete, you’ll open a line of credit to use as collateral for your life insurance policy. Generally, this will give you 70-80% liquidity of your original sum. You’ll use this for additional financial leverage that will help you to cover the annual premium cost without putting your checking account at risk.
Money Insights is here to support your financial strategy
If you’re looking to move from high income to high net worth, the team at Money Insights wants to help. Our team has been working in the industry for years. We’re ready to come alongside you in your transition and support your success in any way that we can. For more information, please visit our website or give us a call at (801) 642-4924.