Infinite Banking

[infiniteassetadvisors]

Hello all. I'm starting a thread on infinite banking to explain the concept and answer any questions you may have. I consider myself a master on the subject and it is part of what I do for a living. I absolutely LOVE this concept and love to share.

So, first things first. What is infinite banking? It's a concept. It's a concept you can put to use to give your dollar more than one job, like a bank does...hence the coined phrase "infinite banking". By utilizing section 7702 of the IRS tax code, you can build cash value inside of a permanent life insurance insurance policy that will grow tax-free, can be utilized tax-free, and when you die - your death benefit and cash value is passed down to your beneficiaries tax-free. By doing so, you have the opportunity to LEVERAGE your dollar, to pay off debt, self-finance debt, grow tax-free retirement, increase cash flow, etc...all on the same dollar, giving each dollar multiple jobs.

P.S. Before someone says "but Dave Ramsey says it's a scam...Dave Ramsey is full of ****. I'm not sure if he is lying to people on purpose, or if he just doesn't understand life insurance. I know he is in the business accepting royalties for the company he represents and they only offer term life. We also offer term.

Ask away!

 

[LAY THE WOODY]

How can I get the attorney general off my ass for child support?

 

[davet61091]

Just my opinion here, life insurance is and should always be viewed as "break glass in case of emergency" and not as an "investment"

 

[22LR]

Ask away!

What is your favorite brand of baked beans?

 

[infiniteassetadvisors]

Just my opinion here, life insurance is and should always be viewed as "break glass in case of emergency" and not as an "investment"

Correct. It is not an investment vehicle, but it IS one of the greatest assets out there. I never sell it as an investment, but it can perform almost as well as an investment when you consider the fees and taxes you pay with investments.

 

[saba1418]

Correct. It is not an investment vehicle, but it IS one of the greatest assets out there. I never sell it as an investment, but it can perform almost as well as an investment when you consider the fees and taves you pay with investments.

Serious question. Could you make an informational video for us to watch to show how the process works?

 

[infiniteassetadvisors]

Serious question. Could you make an informational video for us to watch to show how the process works?

Yes! I already have some videos made on my YouTube channel. @infiniteassetadvisors

 

[LAY THE WOODY]

Serious question. Could you make an informational video for us to watch to show how the process works?

Ain't no lube like mammas right son? Dang almighty.

 

[BerkshireA]

Correct. It is not an investment vehicle, but it IS one of the greatest assets out there. I never sell it as an investment, but it can perform almost as well as an investment when you consider the fees and taxes you pay with investments.

Saying something is not an investment but in the same sentence saying it is an asset is everything that’s wrong with “financial advisors” who are truly insurance salesmen.
My questions to you:
- are you a fiduciary?
- have you run the analysis to see the difference between your whole life policy scenario, versus a beefed up term policy and using the savings in premium to invest in equities?
- what is the commission structure for you when you sell a whole life policy versus a term life policy?
- what is the general surrender fee amount if you were to cash out the policy in two years?

For the general forum: Barron’s released a study where they examined the general investment industry that holds themselves out to be called “financial advisors”. They categorized a true financial advisor as a company who can provide true holistic financial advice (portfolio advice, management, and oversight - comprised of stocks, bonds, and alternative assets. Insurance planning. Estate planning. Education planning. Debt management. Etc.). What Barron’s found in their study is that although the entire industry calls themself a financial advisor, but less than 6% actually fulfill the job role of a true financial advisor. The majority of the industry are just insurance and mutual fund salesmen.

 

[infiniteassetadvisors]

I don't know how saying something should be considered an asset vs calling it an investment makes "something wrong" when I'm just being honest here. If anyone sells the concept as an investment, you should run.
- are you a fiduciary? I'm not a fiduciary as there is no managing of anyone's money in this concept because it is 100% safe with no risk.
- have you run the analysis to see the difference between your whole life policy scenario, versus a beefed up term policy and using the savings in premium to invest in equities? Most term policies never pay a death benefit as most people out live the term. The average investor in the stock market earns 4.5% before any fees or taxes. Currently, one of the main companies we utilize pays a 5.2% dividend.
- what is the commission structure for you when you sell a whole life policy versus a term life policy? Depends on the structure. I structure mine where my commission is smaller to provide more client benefit.
- what is the general surrender fee amount if you were to cash out the policy in two years?

For the general forum, there have been tons of studies done by non-industry people with multiple financial degrees and the general consensus is that your retirement portfolio should be made up of investments (40%), indexed accounts (annuities) 30%, and PERMANENT life insurance (30%). Life insurance is the cheapest way of passing on money to beneficiaries.

 

[infiniteassetadvisors]

I meant to provide a link to a study so here is one for starters...https://www.ey.com/en_us/insurance/how-life-insurers-can-provide-differentiated-retirement-benefits

 

[BerkshireA]

Will you please address my questions?

Once you do, I’ll address the article you provided, which was authored by an independent writer at a tax and audit corporation.

 

[infiniteassetadvisors]

Will you please address my questions?

Once you do, I’ll address the article you provided, which was authored by an independent writer at a tax and audit corporation.

I did address your questions.

 

[infiniteassetadvisors]

Oh, and a question for you Berkshire, how much money did your clients lose last year?

 

[infiniteassetadvisors]

The one question I did miss earlier, there is no fee if you decide to terminate the contract after 2 years. I don't use IUL's.

 

[infiniteassetadvisors]

Once you do, I’ll address the article you provided, which was authored by an independent writer at a tax and audit corporation.

Thank you for making my point for me. An independent tax and audit corporation did a study to show how LIFE INSURANCE benefits your retirement portfolio. Again, Infinite Banking is completely separate from what you're talking about here Berkshire. It's a concept, that people can use to build cash in a vehicle that is risk free, that can be utilized tax-free, to pay off debt faster, stay out of debt , and help build more tax-free retirement.

This isn't rocket science.

 

[BerkshireA]

Oh, and a question for you Berkshire, how much money did your clients lose last year?

They didn’t lose because they didn’t sell. They’ve already made up any market declines from 2022 plus more

Also, average market returns are 4.5%? Not sure what benchmark you’re looking at. The S&P 500 has averaged about 9% per year for the last 50 years.

It’s honestly sad that clients are getting duped by these policies. 9 of 10 policies I see in the business are garbage and we spend our time trying to help clients unwind them.

The posters in here nailed it. Don’t mix insurance and investments. There’s a place for both, but down intertwine them. If you lack assets and need to insure your life, get a term policy.

Later dude

 

[infiniteassetadvisors]

They didn’t lose because they didn’t sell. They’ve already made up any market declines from 2022 plus more

Also, average market returns are 4.5%? Not sure what benchmark you’re looking at. The S&P 500 has averaged about 9% per year for the last 50 years.

It’s honestly sad that clients are getting duped by these policies. 9 of 10 policies I see in the business are garbage and we spend our time trying to help clients unwind them.

The posters in here nailed it. Don’t mix insurance and investments. There’s a place for both, but down intertwine them. If you lack assets and need to insure your life, get a term policy.

Later dude

Noooo..you don't get out this easy! Made up 20% market declines with 10%!!! Now which of us is being a little ridiculous here? A 20% market decline takes a 25% gain the following year to get your money back. Let me ask YOU some questions:
1) What fees do you charge?
2) Yes the S&P has, if you had money in it for 50 years...that's my point, most investors get scared and the AVERAGE investor only gets a 4.5% return.

You have ZERO clue about anything I do or any of these policies. All you can do is attack because that is the easy thing to do.

Yes, it is a MIXTURE of investments, lifetime income via annuities (I do these as well), and permanent life insurance that creates the ideal retirement portfolio. That is my point. You're the one that came in for no reason and started attacking.

 

[BerkshireA]

Noooo..you don't get out this easy! Made up 20% market declines with 10%!!! Now which of us is being a little ridiculous here? A 20% market decline takes a 25% gain the following year to get your money back. Let me ask YOU some questions:
1) What fees do you charge?
2) Yes the S&P has, if you had money in it for 50 years...that's my point, most investors get scared and the AVERAGE investor only gets a 4.5% return.

You have ZERO clue about anything I do or any of these policies. All you can do is attack because that is the easy thing to do.

Yes, it is a MIXTURE of investments, lifetime income via annuities (I do these as well), and permanent life insurance that creates the ideal retirement portfolio. That is my point. You're the one that came in for no reason and started attacking.

I am a fiduciary. The fee I charge is less than 1%, and it includes more than selling an insurance policy. It includes everything a true financial advisor should do: investment management and advisory, insurance planning, estate planning, tax planning, etc. My incentives are aligned with my clients. If clients make more money, then my less than 1% fee is more income.

Your incentives are aligned to sell whole life. The more whole life you sell the higher your commissions. Insurance salesmen make little money on term, even though that’s generally the most appropriate. Don’t think so? Well the CFP Board thinks so.

Few more things I suppose: market wasn’t down 20% from 1/1/22 - 12/31/22. My job is to manage clients investment and ensure that we don’t buy and sell at bad times.

Market isn’t up 10% YTD, it’s up 17%.

Do you have your CFP, series 7, and series 66? Or just the 65 and an insurance license?

Didn't want to go there but you asked for it. You are an insurance salesman hiding behind the financial planner camouflage. I’m sure Northwestern Mutual, MassMutual, or Ameriprise appreciate their policies you push.

Lastly, the friends and family business is spotted from a mile away. That’s how you burn bridges because everyone sees the motives behind that “let’s go grab coffee” conversation.

Later dude

 

[infiniteassetadvisors]

I help with estate planning, tax planning, life insurance, and safe money management. Ya, small commission but no annual fees. a 1% fee can do a lot of damage to a retirement portfolio.

Later dude!