How To Build Wealth for Middle Aged Adults
Middle-Aged Americans are often some of the most worrisome people, when it comes to finances. Many of them realize with retirement fast approaching that what they are doing isn’t working, yet, they have little idea how to properly prioritize and prepare themselves for what’s to come.
We all aim to enjoy our retirement years. But so few actually do. And as we see more and more Americans unable to live comfortably in retirement, it's natural to want to avoid making the same financial mistakes our elders made.
Fortunately, there is an answer for all you Middle-Aged Americans out there looking for a better way to handle your finances, and ultimately build wealth. And, if done right, it allows you to live out your life on your own terms.
Here are the top 7 wealth building strategies for middle-aged Americans:
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Start a private banking system
The first step in any sound financial strategy is to fortify your foundation. And the best way to do this is to speak to an Infinite Banking Concept specialist with knowledge and expertise on specially designed whole life insurance policies with mutually owned insurance companies that pay dividends. This is the ultimate “and” asset, allowing you to earn guaranteed uninterrupted compound interest on your money while still benefiting from using the cash value simultaneously.
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Maximize contributions to your private banking policy
Don’t be afraid to maximize the contributions to your policy to increase the cash value you can borrow from again and again. This will be your source of funding for everything else in life. Can you ever go wrong by “depositing” more money into your banking system, and thus building up your cash value? No, it’ll only benefit you more.
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Use policy loans to invest in what you know, like, and understand
Like we said before, your policy is the foundation to your finances, but it doesn’t stop there. Your Infinite Banking Strategy should go another step deeper. Using the cash value of the policy as collateral to borrow against and invest in other opportunities such as real estate, business ventures, or stocks, is where you see the most growth and really start to build wealth. As long as you pay yourself back with interest, like you would to a conventional bank.
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Diversify
The best way to minimize risk is to diversify your investments. When you find an investment you know, like, and understand, absolutely invest if you feel called to do so. But many people make the mistake of stopping there. A four-legged table that loses a leg is far sturdier than a two-legged table that loses a leg, wouldn’t you agree?
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Rethink the traditional retirement account strategy
Using and funding a qualified retirement account, such as a 401k, is only delaying the inevitable–taxation. We are taught to give up our stronger dollars today for weaker dollars in the future. And it’s no surprise that taxes go up, up, up, NOT down. Instead, utilize the tax-free growth environment inside these specially designed whole life insurance policies so you can access your money when you need it most, in your retirement years.
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Legacy planning
Not only are many middle-aged Americans concerned with their retirement, they are also concerned with what will happen to their family should (or, rather, when) they pass away. Your policy’s death benefit can be used to provide a financial legacy for your loved ones, allowing your wealth to continue on for generations.
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Monitor the policy performance
You should monitor your policy’s performance regularly and adjust contributions and investments as needed. Without this consistent monitoring, things could potentially get out of hand really fast. Educate yourself, know what to look for and who to call to get it done so you can make the necessary changes to keep your finances headed in the right direction.
The biggest takeaway is to remember that a strategy where you’re in control means you’re better off. Becoming your own banker means that you call the shots. Because no one cares more about your financial future, and your retirement, than you do.
Want to dive deeper into this topic? Check out our podcast on Unleashing Wealth-Building Strategies for Middle-Aged Individuals: Apple / YouTube
