When it comes to investing and retirement planning, many of us blindly accept the status quo of what the financial industry and its representatives tell us. After all, financial representatives are the experts we rely on to help us manage and grow our money, right? In this blog, we debunk 3 financial myths you should never fall for but have probably been led to believe.
That’s partly because we’ve been told the same advice for so long that’s it’s just become engrained in our “financial” collective consciousness as fact. So, you may want to rethink the traditional advice you’ve probably received.
An RRSP is the best way to save for your retirement.
An RESP is the best way to save for your child’s future post-secondary education.
Taking on unnecessary risk by investing in the volatile stock market is the only way you can grow your wealth.
A high-Interest Savings Account or TFSA is the best way to create an Emergency Fund.
Malarky! That’s not necessarily true!
There are other alternatives to building wealth, planning for retirement and paying for your child’s future education. You’re just not being told about them! Here are three of the biggest financial myths you should never fall for that financial representatives are telling you.
Myth #1: You Must Risk Your Money To Grow An Adequate Nest-Egg
When it comes to planning your retirement, one of the biggest fallacies financial representatives tell us is that you have to risk your money to build your retirement fund.
What they don’t tell you is that by doing so, you could be playing a game of Russian roulette with your finances and your future.
It’s happened before (the stock market crash of 2008 and again this year with the pandemic), and…it can happen again. What if the market were to tank close to your retirement years? What if you lost more than 50 percent of your retirement or life savings? What would you do if that happened? Were you told this risk is a possibility?
So what’s the alternative? There is another way to save for your retirement, an emergency fund or even an education fund. It’s a little-known but proven strategy that eliminates unnecessary risk and gives you a way to bypass the often-turbulent volatility of the stock market to grow your wealth safely and predictably year over year.
This strategy uses a supercharged structured dividend-paying whole life insurance as a secure savings vehicle to help you build sustainable, long-term wealth through contractually guaranteed growth and potential dividends. Options are added that can make your equity or cash value in the policy grow significantly faster than the standard kind of whole life policies—those kind are the ones that so many financial advisors love to trash talk because they don’t understand the power of dividend-paying whole life policies.
Myth #2: Whole Life Insurance Is A Lousy Investment
Another financial myth is “whole life insurance is a lousy investment.” Dividend-paying whole life insurance is not really an investment. In the financial world, an investment implies you’re willing to take on some level of financial risk: you may yield a return over time, but you could lose a substantial amount of money as well. There are no guarantees.
On the contrary, whole life insurance is an alternative asset class, a savings vehicle that comes with many guarantees:
- Your premium is guaranteed to never increase
- You receive a guaranteed pre-set annual cash value increase—and your gains don’t disappear when the markets crash
- Your costs are guaranteed to never increase
- You’re guaranteed to have access, to up to 90 percent, of your cash value in the policy—whenever and for whatever you need, no questions asked.
- Your policy has a guaranteed death benefit—and your cash value is guaranteed to be equal to your death benefit when the policy matures.
The only thing that is not guaranteed in a Bank On Yourself-type high-cash-value, dividend-paying whole life policy is the size of your annual dividend. You aren’t guaranteed to receive annual dividends, which are credits to policy owners in years when the mutual insurance company’s profits exceed their expenses.
In Canada however, mutual life insurance companies that specialize in dividend-paying whole life insurance policies are financially strong, with an established track record for paying dividends every single year for at least 100 years, including through the Great Depression, the 2008 recession and more recently during the 2020 pandemic.
Myth #3: You Don’t Need a Specially Trained Advisor
Not all Advisors are created equal.
Say you approach your advisor that isn’t authorized in an accredited dividend-paying whole life concept, like Bank On Yourself, but tell them you’d like such a policy. They then realize that you really don’t want to put all of your eggs in the “hope-and-pray-it-all-works-out” basket that they’re pushing.
The next thing you’re likely to hear is, “Well, I can help you set up that strategy.”
If you do hear that, then you might want to ask them, “If you could have done this for me before, why didn’t you?”
CAUTION! If a financial advisor doesn’t structure your policy properly or uses the wrong company or product, your policy could grow much more slowly, lose its phenomenal tax advantages, or both. *Please ask them if they are accredited in dividend-paying whole life concept accreditation.
Take Action Today to Bust These Myths: If you’re ready to speak with a highly trained and knowledgeable Bank On Yourself Professional who can help you with a variety of safe wealth-building and guaranteed lifetime income strategies, just request an Advisor referral and free Analysis here now, while it’s fresh on your mind!
*Note: MacDev Financial is the only company in Canada with advisors authorized in more than one dividend-paying whole life concept, Including Bank On Yourself (BOY), Bank On Whole Life (BOWL), The Infinite Banking Concept (IBC), and/or Cash Flow Banking. To request an appointment with a MacDev Financial Advisor or for more information, please visit https://macdevfinancial.com/contact/
Disclaimer: The material provided in this newsletter is for informational and/or educational purposes only. The information, opinions and/or views expressed in this newsletter are those of the authors and not necessarily those of the distributor. All financial endeavours should be vetted through a financial professional: life insurance broker, financial planner, accountant, lawyer, and/or other professional, as the reader, sees fit. MacDev Financial Group Corp., SET Financial Solutions Inc., including but not limited to its agents, staff, associates and/or partners will not assume any liability for any information printed in this article; indirectly, or assumed. The MacDev tagline, “Financial Control For Life” and “Bank On Whole Life” are trademarks of the MacDev Financial Group Corp. Click Legal for further information.