Wealth Creation and Growth

​Wealth is any economic value people create through work or acquire through exchange. Money is merely a general medium of exchange used to buy assets like houses, businesses, or land, whose values may rise or fall over time. As such, money itself is an asset as a claim on real wealth. When wealthy people need spending money, they usually do not sell appreciating assets or make bank account withdrawals to acquire the money because selling or withdrawing would end their asset’s or bank account’s future growth and income potential. 

Instead, they borrow money using their assets as collateral to secure the loan, which gives them spending money (functionally untaxed income) while they keep ownership and potential growth of the asset against which they borrowed. Most people cannot do this because they do not yet own large assets. Whole life banking solves that by immediately creating a non-tangible financial asset called “cash value” whose primary purpose is to serve as collateral for contractually defined loans. This allows everyday people to borrow against their cash value (their owned asset) instead of withdrawing (selling) it and creating a taxable event. They use untaxed money without giving up ownership or stopping the growth of what cash they’ve already accumulated.

Wealthy people don’t have to sell their growing assets. They borrow against them so growth never stops. Whole Life Banking™ enables virtually anybody to do the exact same thing using a guaranteed, always-growing cash asset instead of tangible real estate or stocks subject to unpredictable losses.

Although the wealthy often borrow against speculative assets that are subject to losses during economic downturns, Whole Life Banking™ enables virtually anybody of wealthy or modest means to borrow against a contractually guaranteed asset called “cash value” that is not subject to losses during economic downturns.