The Lifetime Economic Acceleration Process: The Key to Financial Success.

10 months ago
2 Min Read
346 Words

Robert Castiglione’s founding of LEAP, Inc., and the publication of his book, LEAP — The Lifetime Economic Acceleration Process: The Key to Financial Success.

Castiglione’s book, written in 1980, attempts to make the case for using life insurance to create a savings account, where your paid compound interest tax free, and this account allows you to be your own bank. The underlying premise of this book is that over the course of their lives, most people pay lots of interest to creditors on all manner of loans, from mortgages to cars to credit cards to college loans. This interest and the interest on that interest is a lot of money drained from the pockets of consumers and reduces their ability to become wealthy.

The next major premise is that if, instead, you aggressively saved money within a certain type of life insurance policy, you could fund these purchases from loans on that policy and pay the interest to policy loans, rather than the bank. This is the functional equivalent of paying yourself for the loan, with interest. Therefore you are keeping the interest within the cash value of your own life insurance policy, rather than paying off the bank.

The claim is that rather than enriching the bank, your payments go back to enriching yourself or your heirs, when the policy pays off at your death.

The savings account is also made possible by its tax benefits; the other benefits of whole life insurance:

>•  A guaranteed tax-free death benefit for your beneficiaries (important!)
•   Cash value that grows at a guaranteed minimum crediting rate, with no risk of market loss.
•   Tax-free growth
•   Tax-free withdrawals
•   Tax-free loans
•   Annual dividend payments, provided your carrier is a mutual insurance company, owned by policyholders.

The IRS rules which support these statements are reviewed. Since then other books have been written on this subject, but they review the same facts, the same concepts, which were originally called infinite banking.

I think the book is a good read and I recommend it as part of your financial education.