Why Pay Back Sacred Account Loans Early?

Why Pay Back Sacred Account Loans Early? by Jerry Fetta

Someone asked me yesterday, why would I pay off my Sacred Account loans early?

So I’ll be answering that question in this article today!

First, let’s do a quick recap on what The Sacred Account is!

It is High-Early-Cash-Value-Dividend-Paying-Whole-Life-Insurance (this is one of the main reasons I just call it the Sacred Account).

This is basically a very specific type of life insurance that you can save money into and borrow against!

So if I deposit $1 into my Sacred Account, that $1 will grow at 3–5% per year on average, for the rest of my life and tax free!

It is guaranteed to grow and guaranteed against loss (and has done both of those things for 150+ years in a row).

It is protected from taxes, creditors, and lawsuits.

It is fully backed as well as insured.

And it gives me complete privacy.

But above and beyond that, my $1 that grows at 3–5% per year can be borrowed against.

I can borrow 70–90% of my funds, and my entire $1 will keep growing like it never left the account.

I do pay loan interest of about a 1–3% annual effective interest cost if I structure my loans correctly, which brings me to my point.

We’ve talked about why we borrow against assets before.

When I borrow against an asset, the asset still grows versus selling it.

I also don’t pay taxes on my gains because loans aren’t taxable.

But why pay the loan back early?

Well paying back a loan I took against my own asset is the same function as saving money in a savings account.

Let’s say I take a Sacred Account loan for $100,000 and invest it in a real estate deal that pays me $1,000/mo.

I now have $1,000/mo that needs to go somewhere, right?

Ideally I should not spend it. I should save it to reinvest later.

Where do I save it?

Well if I repay my Sacred Account loan, it reduces my interest cost and it is also available for me to pull out again immediately.

Isn’t that what a savings account is? A place I can deposit my $1,000 and then pull it right back out again once I need it?

The difference is, a savings account pays me less than 0.10% interest.

Paying back my Sacred Account loan can save me 1–3% in interest costs, which is like earning that much interest because I don’t have to pay it.

When I pay my loans back early, it is the same exact function as saving money and it also reduces my interest expenses.

I cannot lose the money I put toward loan repayment either so there is no downside.

Now you can see why this is such a smart financial move!

To learn more about how you can use the Sacred Account to become your own bank, I want to offer you a free copy of my book, Blueprint to Financial Freedom.

Click here to get your copy!

Blueprint to Financial Freedom by Jerry Fetta

This book will teach you the strategies, like the Sacred Account, that the wealthy have been using for centuries!

It also comes with a free Course Supervisor who will make sure you understand and finish the book, as well as a free coaching call so you can implement the strategies you will learn!

Don’t miss out!

Click here to get your free copy!

To Purpose, Wealth & Freedom,

Jerry Fetta

Jerry Fetta is the CEO and Founder of Wealth DynamX. He is a nationally recognized financial expert featured in Forbes, Yahoo Finance, Fox, Chicago Weekly News, New York Finance, interviewed on over 45 podcasts with world renowned experts, earning endorsements and affiliations throughout his career with names like Kevin O’Leary, Grant Cardone, Dave Ramsey, and Pamela Yellen.

Jerry’s mission in life is to help create millions of financially educated and solvent families achieving greater financial freedom and sharing the truth about money with those around them.

Learn more at www.WealthDynamX.com

(DISCLAIMER: The information in this content should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Wealth DynamX can and does not provide advice unless/until engaged by you.)



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Jerry Fetta

Jerry Fetta is the CEO and Founder of Wealth DynamX. Jerry’s mission in life is to help create millions of financially educated and wealthy families.