Banking On Yourself

Self assessment for banking on yourself is a process of evaluating whether banking on yourself is a suitable strategy for your financial goals and situation. You can use the following questions to help you with your self assessment: - **What are your financial goals and dreams?** Banking on yourself can help you achieve various financial goals and dreams, such as saving for retirement, buying a car or a house, paying for college, starting a business, etc. However, you need to have a clear vision of what you want to accomplish and why, and how banking on yourself can help you get there. - **What is your risk tolerance and time horizon?** Banking on yourself is a low-risk and long-term strategy that requires patience and discipline. It is not suitable for people who are looking for quick returns or who are not comfortable with the idea of using life insurance as a savings and lending vehicle. You need to be willing to commit to a long-term plan and stick with it through ups and downs. - **What is your current financial situation and cash flow?** Banking on yourself requires you to have enough income and cash flow to pay regular premiums and extra money to fund the policy's cash value. It also requires you to have enough cash value in the policy to borrow from when you need money. You need to assess your income, expenses, assets, liabilities, and net worth, and determine how much you can afford to put into the policy and how much you can borrow from it. - **What is your tax situation and future expectations?** Banking on yourself can provide you with tax benefits, such as tax-free growth of cash value, tax-free access to money through withdrawals or loans, and tax-free death benefit for your beneficiaries. However, you also need to consider the tax implications of using the policy for different purposes, such as buying a house or paying for college. You also need to consider the future tax rates and regulations that may affect your policy or your retirement income. - **What are your alternatives and opportunity costs?** Banking on yourself is not the only way to achieve your financial goals and dreams. You need to compare it with other options, such as conventional investing and saving methods, and weigh the pros and cons of each. You also need to consider the opportunity costs of using banking on yourself, which is the potential return or benefit that you could have received from using your money in a different way.