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Missed Fortune – Cash Returns, But Prudent Debt Still Good

Posted on | April 6, 2010

Since the economic crisis hit, we’ve all seen America go on a credit diet.

Commercial and industrial lending has declined 19 percent since fall of 2008, according to a recent Newsweek article.

Consumer lending has likewise decreased, with banks and credit cards diminishing or cutting off lending nationwide.

For the first time in a long time, America is remembering what it’s like to deal in cash.

Newsweek reported,

“Just as families are paying down credit-card debt and building up cash reserves, businesses large and small are learning to operate in an environment where cash once again is king….

“The real discipline of cash may be that it causes executives, consumers, and investors to think twice—and to think about the long-term consequences—before spending. The need for instant gratification is part of what created the current mess.”

But even in this era of better self-control and smarter spending that cash has helped restore, it’s important to realize that there is still indeed “good debt.”

If we borrow to conserve, not consume, we are doing what banks have always done (and continue to do even now)—using Other People’s Money to make money.

We can continue to use that same principle of arbitrage to prudently save for our own retirement.

By optimizing your assets, you can borrow at one rate to earn at a slightly higher rate, and benefit not only yourself, but also your family, your community, your favorite charities, and ultimately, your heirs.

And by investing your serious money in safe retirement savings vehicles, it’s possible to maintain liquidity—which is what today’s cash-conscious are focused on.

What’s more, by properly structuring these vehicles, you get the added benefit of tax-advantaged saving.

Find out how to use maximum-funded tax-advantaged insurance contracts to protect your financial future. Borrow wisely to conserve, not consume.

And live in a world where better spending decisions can create a better life, for everyone.

Isn’t It Time You Became Wealthy?

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*Life insurance policies are not investments and, accordingly, should not be purchased as an investment

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