Jake Thompson - Money. Wealth. Life Insurance.: How the Wealthy Use Life Insurance as a Tax-Free Personal Bank to Supercharge Their Savings

Money. Wealth.

Life Insurance.

How the Wealthy Use Life Insurance as a Tax-Free Personal Bank to Supercharge Their Savings

Jake Thompson

Copyright 2013 Jake Thompson

Disclaimer: The material presented in this book is for informational purposes. While care has been taken to present the concepts in an accurate and updated fashion, the author makes no expressed or implied warranty of any kind and assumes no responsibility for errors or omissions. No liability is assumed for incidental or consequential damages in connection with or arising out of the use of the information contained here. The information in this book is intended to provide general information and does not constitute legal, financial, or tax advice.

All rights reserved. No part of this book may be reproduced, stored in a special system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior permission from the publisher.

ISBN: 1494896478

ISBN-13: 978-1494896478

DEDICATION

To Alissa and Adri.

Contact Information

Jake Thompson

Real Wealth Financial

Jake@RealWealthFinancial.com

(208) 639-0804

Table of CONTENTS

ACKNOWLEDGMENTS

This book is a compilation of years of learning from some of the greatest people I know. Mentors, partners, and family have played a huge role in the completion of this book.

Chapter 1

The Greatest Test of All

Please travel with me in history for just a moment. It's the latter half of the 18th century, America has just gained its freedom, and the birth of a great nation is underway. Some of the greatest minds in history are creating their footprint on the very land we stand on today.

Among many memorable events, one of the first financial tools of the western world is created. A tool with origins dating back to ancient Rome. And while no one knows it just yet, it will become a lifeline, a protection, and a champion of the greatest test of all

the test of time.

It will literally save thousands of individuals, families, and businesses from financial ruin and devastation. It will be a beacon of hope in the midst of chaos. And most importantly, it will be a source of stability and control in an industry full of crooks and criminals, willing to do anything to make an extra buck.

Over the next few centuries, it will be so ingrained in American culture that making changes to it will be near impossible. It will become the last place truly protected from the corruption of greedy investors, untamed government, and unforeseen financial turmoil.

I like to refer to this tool as a personal bank on steroids, an unparalleled place to stockpile cash, and a financial bunker for tough times

...but it is better known as cash value life insurance.

In this book Im going to show you why and how many wealthy Americans, banks, and businesses have used life insurance as a platform for wealth. Im going to help you see why Ive made it the foundation for every part of my finances, and how you can do the same.

Im also going to share with you how to create and use a specialized type of life insurance I call high cash value life insurance, and how you can use it to benefit yourself and your loved ones. Im going to teach you things only a small fraction of financial advisors and insurance agents have ever even heard of, much less understand. And finally, Im going to share with you the raw numbers, the proof, three case studies to illustrate exactly how it works.

Now lets be clear. Im not talking about that garbage peddled by most insurance agents.

Rather, Im talking about a highly efficient, supercharged savings vehicle designed for stockpiling wealth. A product so powerful its responsible for the success of Walt Disney, JC Penney, McDonalds, and thousands of others. Im talking about a vehicle designed by the wealthy to virtually guarantee financial success and amass wealth. More on that shortly

Now back to history. For the next century and a half America is booming. While we are young and ambitious, we are taking massive strides, firmly making our way into the pages of history.

Benjamin Franklin discovers electricity.

Thomas Edison invents the light bulb.

Alexander Graham Bell invents the telephone.

We hit the Roaring Twenties, the decade that followed World War I. It is a time of wealth and excess; a time when people believe in the markets, the economy, and the government. But what soon follows would disrupt the lifestyle of almost every American

a series of truly tragic events

a time known as The Great Depression.

The Great Depression

In October of 1929, the stock market suffered severe losses. It plunged over 22% in just a few short days, making headlines across the country. But this was only the beginning.

Over the next several years, the markets would have difficulty recovering. The Dow Jones Industrial Average would take a staggering 32-year setback, losing nearly 90% of its value.

From its peak of 381.17 in September 1929, it would close at a shocking 41.22 on July 8, 1932.

It would take another 22 years to surpass its all time high before the crash in 1929.

Nearly 25% of all Americans would be unemployed and unable to find work.

Over 40% of banks would shutdown.

Millions of savings accounts would simply disappear.

Heres where it gets interesting

While banks, businesses, and government sectors were closing their doors, one sector of the economy stood strong and steady, unaffected by these horrible circumstances. Life insurance companies.

Life insurance companies remained virtually unscathed. While the markets suffered severe losses, owners of cash value life insurance didnt lose a dime. They didnt lose any money in the Great Depression, and they havent lost money since.

In fact, it was such a stable place to have money that while many people lost everything, those who owned life insurance were paid profits in every single year of the Great Depression, and every single year after.

It was truly a beacon of hope amid fear and chaos. It was the only place that truly triumphed the devastation of that time.

This is extremely significant. Some believe our most difficult times are ahead of us. With difficult political issues at the door like the national debt, government spending, Social Security, Medicare, as well as economic issues like inflation, taxes, debt, and so on, knowing how and where to keep your money safe is becoming increasingly important.

As youll soon discover, life insurance companies played a big role in helping families and businesses stay afloat, and ultimately trump these difficult circumstances.

JCPenney

When the market crashed in 1929, JCPenney, then a dry goods store for mining and farm families, was severely affected.