Saving and Cash Accumulation

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Is saving and cash accumulation the same thing?

When it comes to saving, the most common method that people use to save money is simply by putting away money in a savings account at the bank (or under the mattress). Essentially, you should at least save enough money to cover about 3 to 6 months of expenses. Saving money in the bank is safe and easily accessible, and you will earn some fixed interest.

Another method to saving and growing your money is cash accumulation. The cash that you accumulate should be treated as a long term goal – not really similar to an emergency fund that is meant to cover at least 3 to 6 months of expenses.

One thing I’ve learned since establishing my business is that there is a safe way to accumulate cash while earning moderate gains and minimizing risk. This strategy should be a part of your portfolio, it is another way to diversify your funds, and is called an IUL. The reason why an IUL can offer gains and minimal risk is because of floor and cap rates – a cap rate prevents losses.

If you don’t know how an IUL works, you need to sit down with a licensed financial professional.

Contact me today to set up an appointment! Learn more how an IUL can be used to accumulate cash and all the great features it offers!