We believe that Participating Whole Life Insurance is the best place to save your money for retirement. But before I get into the why, I want to say that we actually don’t like using the word retirement. When you retire something, like an old shoe, it implies that it is worn out and useless to the wearer now. I don’t ever want to be worn out and useless. Yes as I age, many things that are easy to do today will become harder with time. But that doesn’t mean I can’t be productive and useful still.

We want to be able to gradually transfer our method of earning an income from hard work, to passively generated. Meaning that I will start spending less and less time physically working to earn my money, and start using my money to make more money. That way eventually all of my living expenses will be covered by my money making more money (passive income). This means that I can continue spending my time doing whatever I want to do. Whether it is spending more time with my family, going on vacation, continuing to be productive, or pursuing other things that I am passionate about.

With that said, moving forward, instead of saying retirement, I am going to be calling it passive income years. So back to the topic. Participating Whole Life Insurance gives you much freedom on what you do with your money, all while growing it consistently and constantly, compounding for the rest of your life, and leaving a legacy behind for your loved ones, GUARANTEED! I explain all about how Whole Life works in my page that you can read about here.

The main points are this. Unlike the traditional government approved retirement plans, Participating Whole Life Insurance has very little restrictions on the growth of your money and none when it comes to how and when you want to use it. Whole life is not tied to the market like everything else is, so you have nothing getting in the way of your money achieving those really large gains in the later years of compounding growth. You are always guaranteed a specific amount of growth, which the other plans can only give you speculations. Plus you can earn dividends, which when you get your policy with a trusted mutually held life insurance company that has been in operation for a very long time, they consistently give out dividends with a high potential for growing your money a lot more, even during times of an economic down turn.

Another great benefit of using Whole Life Insurance is that you can use your money however and whenever you want, without questions. You don’t have to wait until you are in your 60’s to use your money and your are not forced to take it out in your 70’s. You can use your money almost immediately after your first premium payment and you can keep your money growing in your policy until you are no longer alive. Plus if you choose to borrow money from your Cash Values (which is what we recommend) instead of withdrawing it, then your money continues to grow as if you never touched it, while you still get to use it. Then, as you pay the interest on the loan, it contributes in the profits of the insurance company and will end up coming back to you in the form of dividends, because you are part owner in the company as a policy holder.

Other retirement plans talk about the tax advantages you get with them, but when used responsibly, Participating Whole Life Insurance Policies can completely avoid any taxes at all! Your money in your policy grows completely tax free. If you choose to borrow money from you Cash Values, then you will never have to pay taxes on the money that you are using because money loaned out is non taxable. So you can use your Cash Values whenever you want through out your lifetime. Then when you do pass on from this world, all the money that is left to your loved ones from the death benefit is 100% tax free as well!

As I have mentioned before, we do not look at our Whole Life insurance policies as another bill that we have to pay. We see it as an opportunity to put our savings in a place where it will have guaranteed growth and where we will be able to use it, however we want through out our lifetime, while it continues to grow. So we want to be able to put as much money into our policies as we possible can, because we know it is only going to benefit us. Everybody that uses this method of saving and growing their money for their passive income years, says “We wish we would have started sooner!” Take a look at our page on how much of your income you should be saving, the 70-20-10 rule, by clicking here.