When you put money in a CD or Money Market Account, you are essentially loaning or renting your money to the bank for them to loan or rent out to their customers. You loan your money to them for a meager 1/2 to 1% of annual interest, and they turn around and loan that money out to their customers for a whopping 5% – 7% annual interest in the form of consumer loans.
They are basically LOANING OR RENTING your cash that you OWN to their customers and giving you the short end of the stick.
If you’re loaning the money to them at 1% and they’re loaning it out at 5%, they are not making a 4% profit, it’s a 400% PROFIT!
5% annual interest is 400% greater than 1% annual interest.
That is what we mean by “maximizing your wealth” and building upon your financial education.
So why are people doing this?
Most people do not realize that the banks take your money in the form of CD’s and Money Market Deposits and loan that money out to their loan applicants, along with securing and protecting bank assets by investing in financially strong life insurance companies.
Major life insurance companies, who administer 401K and pension plans for large corporations offer a 4% guaranteed interest product to the general public and have done so for over 100 years, yet people neglect to take advantage of it just because it is a LIFE INSURANCE COMPANY providing this amount of interest and not a local bank.
That’s right, banks are the LARGEST investors of life insurance companies. Why are you giving your money to the banks at 1% or less and allowing them to invest that money with the life insurance companies when you could be doing the EXACT SAME THING. You could be earning 400% or more than what you are currently earning by depositing your money at the life insurance company instead of letting it deteriorate at a paltry 1% or less? And… with inflation at 2-3%, you’re losing far more value and money through decreased purchasing power than you will ever gain just by leaving your money with the banks.
At Maximum Wealth, we can show you how to stop being the provider of money for the banks, who turn around and RENT your money to their loan applicants or life insurance companies, and then make a huge profit while paying you PENNIES to use your money!
WAKE UP AND SMELL THE MONEY… BANKS ARE!