Although it may sound like something with a high amount of risk, the technique known as Capital Avalanche is the safest way to gain higher wealth.
By leveraging some assets in a different way and with a different flow, you can increase your wealth in a way that is also tax-free. With the avalanche, you can grow your capital while earning more and surpassing your interest’s accrual rate.
Here’s a quick look at how the Capital Avalanche works, as well as the key advantages to building wealth with this method
Working the system in a different way
The first thing you need to start the avalanche method is a lump sum in a side account. You will then need to move that money into a life insurance policy. Yes, we know that premiums can be high for this, but with how the system works, those will be paid for within a year.
Why life insurance? Simply put, money in that type of policy grows much faster than others. It makes it easy to build more interest in a shorter amount of time, adding to your wealth at a high rate of return that is also not taxable.
Once you get that insurance set up, you next need to open a line of credit for collateral for the policy. This means you will have about 75% liquidity of that original amount of money. This is what helps you cover those premiums.
What can you expect to happen
Here are some of the critical benefits of the capital avalanche:
Predictable returns
You can safely forecast consistent and long-term double-digit returns using the math that leads to the avalanche.
The most tax-free income
Levering the tax benefits at the highest rate possible will give you a unique return to this method.
Putting inactive money to work
Instead of financial resources sitting in a specific spot collecting low or no interest, you can take that money instead and truly put it to work for you.
Better access
By accessing this money easier from your checkbook, you can provide for emergencies and quick opportunities you can take to your advantage.
Providing liquidity for your estate
A powerful part of the avalanche, this is a way that high-net-worth or high-income earners can also provide for loved ones’ future needs.
Optimal leverage
With no outside collateral, you can be active with outside investing with a more liquid cash flow alternative to traditional premium financing.
Use different methods to build wealth
Techniques such as the Capital Avalanche are best for a journey from high-income earning to establishing high net worth. If you are an accredited investor, dentist or physician, this can be just one of several ways to increase your wealth with a customized solution that works for how you lead your lifestyle.
