The Banking Effect

Acquiring Wealth Through Your Own Private Banking System

by Dan Thompson

Thompson does a first-rate job of detailing the reasons why the self-financing system using participating whole life insurance works.  He also explains how the life insurance companies work and why a company would allow a policy owner to leverage their policy to borrow money.

Beyond this the author deliberates about the cliché, buy term invest the difference, effectively resolving that such planning is a strategy for those counting on a short life rather than a long life.

The Banking Effect is an easy and concise read that makes insurance trade words palatable so that anyone can understand what things like opportunity cost, economic value added, velocity of money, volume of interest, actual versus average rate of return, etc. really mean.  But even more importantly the book explains why those words are important to you for your long term planning.

Thompson’s work is a great resource to tuck away in your library if you plan on self-financing with participating whole life insurance.

Review by Tomas McFie

Go to:
All Book Reviews                 Next Book Review »

Subscribe for Future Book Reviews