There was a farmer I met who was good at what he did. He knew how to farm. So, after he made his money he wasn't going to put it into some investment that he didn't understand, he wanted to put it somewhere where it could grow safely and he could access the capital when he wanted to.
As he made more money he started buying up more farmland and, as you can imagine, it was just compounding growth from there.
When I met him he had millions of dollars in permanent life insurance, or in what we call, cash value life insurance.
Most people ask right away, "Why? Why would he put a dime in something so horrible as life insurance?"
Well, that's because we have been improperly taught about the simple reality of the financial world.
This farmer recognized while he was younger that permanent, or whole, life insurance offered him everything he needed.
It offered him a place to put his money where it could grow without risk.
It offered a place where it could be taken out and used whenever he needed it--whether for his own needs or for investing in his business.
And it offered him a place where, when he died, his family would be able to collect not only the money he had invested, but most likely a substantial amount more, and it would be income tax free.
So, unknown to himself, he used a strategy called Infinite Banking*.