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Your Guide to the Sacred Account – Jerry Fetta – Medium

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Did you know that most of the savings and investment plans that people use today have never even proven themselves throughout an entire generation of people yet? 401k’s and IRA’s have only been around since the 1970’s and 1980’s. The oldest Mutual Funds in the world have only been around since the 1920’s and 1930’s. Even most banks have only a few decades of history on average. Our entire financial system is based on unproven, relatively new ideas. New ideas are great, but not when it comes to creating wealth. You want proven, time tested ideas. Boring ones that work every single time.

As it turns out, the Sacred Account is one of the most time tested financial solutions available. It has a track record of over 150 years and has been a wealth building tool of the top 1% for that time period. Don’t use what works. Today, I am going to explain to you just how the Sacred Account works for creating wealth.

First, you’ll contribute money to a high early cash value, dividend paying whole life insurance policy. You need to set aside at least $500/mo to contribute. You can do this annually, quarterly, or monthly depending on how you want to set it up. I do monthly and then add more as I go. You will contribute the money to the Sacred Account and based on structure, 75–95% of what you put in will be available right away to be used. Why only 75–95%? Because the other 5–25% purchases the death benefit. But don’t worry, you’re not just buying life insurance. The death benefit actually represents shares of ownership in the insurance company. Every $1000 of death benefit that you own is counted as 1 share. By owning shares (death benefit) you receive dividends when the company’s profits exceed their projections and you are paid these dividends each year. So by sending 5–25% towards your death benefit costs, you are buying shares and these shares pay income in the form of a dividend. It’s a lot like real estate!

Secondly, you need to keep contributing and accumulate. Your first goal is to have $50,000 in your cash value. The quicker you can get there, the better. As you accumulate you will earn 6–8% gross annual dividends. These will get reinvested into your cash value to purchase more shares and give you the power of compounding interest. The dividends are guaranteed to be never less than 4% annually, but over the last 150+ years in a row, they’ve averaged 6–8%.

The third step is to borrow against your account once you’ve reached the $50,000 mark. The ONLY reason you would borrow is to pay off debt that is costing you interest and frees up a payment or to invest in an income producing asset that pays you cash flow. When you borrow, you will typically pay a 5–6% interest rate to borrow, so be aware of that. But why borrowing? Because when you borrow, you avoid taxes on any of your growth. The IRS cannot tax a loan. Also, by borrowing, you never actually remove your money from your account. You simply use it as collateral for your loan. This means that all the while, you are still earning dividends while you use your money to invest or pay off debt. So you’ll borrow at 5–6%, but you’ll be making 6–8% and you’ll invest to earn more than 6%. Plus there are ways to write off your loan interest on your taxes.

Fourth is to invest. You borrow the $50,000 to invest it. Like I mentioned you can use it to pay off debt (which is an investment) or you can actually put it into a income producing asset that pays you every month. Don’t over think this. You’re borrowing at 5–6% which means you need to earn more than that. If you don’t, it’s not really a good idea to borrow. So if you borrow to pay off debt, you’d pay off the entire balance of the debt, saving you interest and then take your old payment and use it to pay off your cash value loan. Or you can invest it into an income produce asset that makes 8% interest. You’d use the cash flow you receive to pay back your loan early as well. The reason why you’d pay back your loan early is that it reduces your principal balance on the loan and thereby also reduces your net interest dollars paid to about 3–4%.

Do the math on this. In a best case scenario you are earning an 8% dividend, plus an 8% return, and only paying 3% in net interest. That is a 13% annual return.

Plus, you will keep contributing, pay your loan off early, and do it again with your next $50,000!

This plan is simple, boring, fool proof, and effective. But best of all, even in a worst case scenario, the Sacred Account makes two guarantees.

#1. You will never lose money.

#2. You will always make money.

Ask yourself, can your current investments make those 2 simple promises?

This is the Sacred Account strategy and it is a strategy that I personally use and a strategy that my clients have put over $1 million into in the last 12 months.

If you’re reading this and you’d like to learn more about it, simply go to www.SacredAccount.com or just click here.

Own Your Potential,

Jerry Fetta

Grant Cardone Certified Coach

Jerry Fetta helps his clients gain more financial knowledge, make more money, keep more of it, and multiply what they keep.

If you feel like one or more of these areas is costing you money and opportunity right now, then get more information about Jerry Fetta and Wealth DynamX by going to www.WealthDynamX.com/contact

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