Financial Literacy Group launches Hybrid Mortgage Arbitrage, a financial solution that turns debt into income and wealth

Turn your liabilities into income and wealth

This upsets Infinite Banking

How do banks, credit unions, and other financial industry organizations use tax-advantaged products to offset costs?

Bank-Owned Life Insurance (BOLI) is a great way for banks to save money on their employee benefit costs.

Banks are required to pay their employees an adequate benefits package. While being fiscally responsible and profitable in the long term. The rising cost of employee benefits is a problem faced by businesses of all sizes and BOLI is a viable solution for banks, credit unions and other community financial institutions.

A 2021 study of the location of U.S. banks reveals the amount of bank assets in life insurance. Here are the first 3:

$24,068,000,000 Bank of America

$19,483,000,000 Wells Fargo Bank

$12,139,000,000 JPMorgan Chase Bank

Regardless of the type of BOLI program used, the biggest benefit is that income earned on the cash value of policies is generally not considered an employee’s taxable income – unlike the benefits you would typically see in a 401(k) or profit sharing. plan.

“Through this BOLI study, we learned how it has already helped fund scholarships, construct community buildings and more. Now we can clearly see that life insurance to supplement income is a solution that could be used by middle-class people to turn their debt into income and generational wealth,” says Ron Harris, CEO of Financial Literacy Group.

“Through our research, we found that a similar solution under current tax law would work for individuals, families, business owners, and nonprofit organizations. via the Cares Act 2020, we were able to design a consumer version of BOLI,” said Harris.

Now, the cash value in an IUL could include the policy owner’s debt balance, which would provide a tax-free death benefit, living benefits, and tax-free, risk-free potential income.

This means that an individual, family or business owner could put the money needed to pay their debts into the policy and borrow that money while continuing to pay their debts.

“By using accelerated debt repayment and over-funding an IUL with the insured’s debt balance, the insured can fund their own bank in less than 10 years. Using a special endorsement that makes a policy liquid gives the insured access to growing cash value in the form of loans that never have to be repaid. This disrupts Infinite Banking”. Explain, Harris.

Because it is a loan from the insurance company, there are tax advantages and whatever the amount of the loan, it is secured by the policy owner’s cash value, which was at originally the balance of the debt, the loan is paid by the guarantee when the insured dies.

Financial Literacy Group is changing the discourse on financial wellness, our solutions level the financial playing field between middle-class Americans and financial institutions. We teach adults who live on Main Street how to manage their finances like working people on Wall Street, one individual, family or small business owner at a time.

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