tag:blogger.com,1999:blog-8529580665294663953.post7464019197210301460..comments2023-10-27T04:26:57.609-07:00Comments on InvestorCentric: Is The Infinite Banking Concept A Scam?NuWire Investorhttp://www.blogger.com/profile/02512928198926080436noreply@blogger.comBlogger74125tag:blogger.com,1999:blog-8529580665294663953.post-3081075670326885092013-11-04T22:15:33.935-08:002013-11-04T22:15:33.935-08:00This system wasn't created for life insurance ...This system wasn't created for life insurance policies. I tell people all the time, if you can find a better place to do this then I'm all ears. <br /><br />Life insurance is just the best place to do this. There is no better place to put your money where you can have access to it, it's safe, it has tax advantages.<br /><br />Everyone keeps comparing this to investments which is ridiculous. This isn't an investment. This is only a vehicle. Most people that do this put their money in a life insurance policy and then turn around and invest that money into something else. Life insurance is a savings vehicle not an investment vehicle.<br /><br />When you start to look at it that way, you'll realize a few things. Compared to any other savings account life insurance wins... hands down. <br /><br />You can always access your money for investment purposes, and you will have a tax write off for it. In most cases you will make more money from an investment doing it through a life insurance policy than without... the tax advantages are unparalleled. Infinite Bankinghttp://www.infinite-banking-concept.orgnoreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-86332497519907857432013-10-20T20:18:37.768-07:002013-10-20T20:18:37.768-07:00This was a great discussion on IBC. Thanks to all ...This was a great discussion on IBC. Thanks to all who have commented it was very eye opening. <br /><br />We just started our IBC last month. I would like advice on how to get my daughter who is turning 21 on board. <br /><br />Thanks<br /><br />msparksMichael Sparkshttps://www.blogger.com/profile/05495439608293054040noreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-25203902926355009332012-04-19T10:06:35.490-07:002012-04-19T10:06:35.490-07:00@ Drexelbond
Each policy is different. Each carri...@ Drexelbond<br />Each policy is different. Each carrier has different interpretations of the MEC limits. Some are conservative and others more liberal. You will likely have to pay the base and term for 8 years to stay away from a MEC status. A lot of policies will make you keep the minimums up for the term of the policy. If you can get enough cash values built up then the policy can be self funding also. So if you don't want to pay your minimums for years 5-8 then make sure you have enough cash values to use for the minimum funding. If the policy allows you to make it reduced paid-up (without becoming a MEC)in the 9th year then you could stop paying completely and avoid a MEC status.<br /><br />Good Luck,<br /><br />www.bankoutsidethebox.comVeracity Financial Insurance Brokeragehttps://www.blogger.com/profile/11984080478500062975noreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-45402480544893900992012-04-18T12:43:52.522-07:002012-04-18T12:43:52.522-07:00I am in the process of structuring my IBC policy r...I am in the process of structuring my IBC policy right now. Its a $100k base policy with a $500k 20 yr term rider to expand the MEC limit to $22k. We plan to seed in $60k over the first 4 years. But my question is about the MEC limit after that. Since I'll be paying $3600 after that, won't I be wasting $18k in MEC limit? Could I just drop the 20-yr term rider to save the money for more PUA's? Thanks...drexelbondnoreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-61208757439598232232011-06-14T14:07:30.004-07:002011-06-14T14:07:30.004-07:00Pete, I believe your comment was meant for me “you...Pete, I believe your comment was meant for me “your resident expert.” It came to my email anyway, so I will assume it was meant for me. I put your comments in "Quotations"<br /><br />"why didn't you state that the commissions are approx. 60% less than normal"<br /><br />You are right in the fact that commissions on a banking policy are 60% less; in fact it can be as much as 80-90% less.<br /><br />"This may be why most agents don't want to sell them this way."<br /><br />In my experience it's not "want" but "can't" afford to do it. I have producers who contact me about the banking concept and the first thing I mention to them is their cut in pay to do it this way. Most of them bow out right then and tell me either (if they are newer to the biz and or an average producer) "My spouse is certainly going to make me get a real job now" or (if they are a successful veteran) Why would I take a cut in pay now when I have successfully doing it the other way for 30 years."<br /><br />The producers that I have seen give it a try usually don't stay with it long. The biggest reason is that their business model has too much overhead and can't be profitable with the huge cut in compensation. That doesn't even consider that they may not be good at explaining the concept and miss sales because of it. It is hard enough for the consumer to understand it and if you can't give clarity then it's a loss for both parties.<br /><br />"the IBC isn't for everyone and specifically if you do need a high death benefit available"<br /><br />You have been in line with your statements up to this point. There a multiple ways to design these policies. When someone designs a basic banking policy, it certainly lacks death benefit. There are ways to increase the death benefit to a desired amount for the client with very little increase in premium outlay. Most of the policies don't have this ability but a few do.<br /><br />I hope this helps Pete.<br /><br />"Your Resident Expert"<br /><br />Questions from consumers (who aren't going to waste my time by gathering info just to take back to another producer)and producers (who are honest and don't pretend to be consumers)are always welcome...<br />I can't believe I have to state this...it just seems like basic ethics and honesty:(<br /><br />veracityfinancial@gmail.comVeracity Financial Insurance Brokeragehttps://www.blogger.com/profile/11984080478500062975noreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-3659432908186828102011-05-19T13:30:49.070-07:002011-05-19T13:30:49.070-07:00As you seem to be the resident expert on the IBC, ...As you seem to be the resident expert on the IBC, why didn't you state that the commissions are approx. 60% less than normal, as we write the contract with the minimum allowed death benefit so we can overfund the policy maximizing the clients ability to have more of their cash readily available. This may be why most agents don't want to sell them this way. With that said, the IBC isn't for everyone and specifically if you do need a high death benefit available. ...pfPetehttps://www.blogger.com/profile/13632084166457877236noreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-30593416236439772942011-04-09T16:59:54.631-07:002011-04-09T16:59:54.631-07:00E:
My wife and I decided to go with an IB policy....E:<br /><br />My wife and I decided to go with an IB policy. To answer your question about the 6K for a 1M policy, I'll give you some #s from the sample of my illustration. It's described much better by an insurance agent, but I will do my best.<br /><br />There is a simple formula that insurance companies use to see the maximum amount of insurance you can have, be it term or WL. It's your salary x a factor as determined by your age. So if you made 100K/yr, with you in your early 30s, you can have a DB up to 25x your current salary, or $2.5 Million, in any form of term, UL, or WL. If you lie and want 4 million, the ins. cos will figure it out and then you will have no insurance.<br /><br />Part 2 is what you asked about. A proper IB policy will minimize the death benefit and the WL policy part and EMPHASIZE the paid up riders. Each company does it a little differently but using the example of a 2.5 M DB, an IB policy will look like:<br /><br />WL - 14K/yr for $1M base<br />10 year term rider: $700/yr<br />Paid Up riders: $45K/year which gets you another 1.5M in DB, but is really done to emphasize the CV<br /><br />So, the answer is I don't know how someone could have gotten a policy for 6K. To get the 1M # from this just divide everything by about 1/3, but that still puts you at about 20K per year. EVentually they could do just the 6K just so the initial PUA/CV they put in is not sucked out to continue to pay the premiums, but as far as I understand it, something is not right.<br /><br />Hope this helped.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-64504778220195868442011-02-02T06:47:39.385-08:002011-02-02T06:47:39.385-08:00Anyone? Just wondering why someone else is able to...Anyone? Just wondering why someone else is able to get a WL policy for 6k with 1 mil coverage and mine is 27k.<br /><br />Thanks in advance<br /><br />EAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-79384239404177992492011-02-02T05:56:15.708-08:002011-02-02T05:56:15.708-08:00@ E
Here is something your agent (or website) didn...@ E<br />Here is something your agent (or website) didn't tell you: A life agent will get paid based on a mathematical formula concerning your annual premium. Some companies simply pay 1 yr of annual premium plus renewals, some a percentage of annual with annual renewals, etc. and the renewals are typically not big payments. So a larger death benefit = larger paycheck for the agent.<br /><br />The way to get the most out of your plan is a little counter-intuitive at first. You want to dump as much money into your policy as you can, as quickly as you can, with the least amount of death benefit possible. Why? The amount of money you put into the plan will determine how much money you will be earning interest on. The faster you fund your plan, the quicker you can minimize the "cost" of the plan. The amount of death benefit will determine how much you pay in premiums, and the premiums you pay will affect the agent's commission check.<br /><br />If you simply are looking for a $ amount of insurance until you get your wl, ul, etc. policy up to $1M in db, perhaps look to a low cost term policy for ten years. You can add a Return of Premium rider (ROP) for a few bucks a month if you like and get your premiums back in a lump sum. Then you can reevaluate the need for coverage at that time. Let me add my disclaimer here, ask the agent if you get premiums only back or if you get premiums plus the rider cost back, because I've seen both.<br /><br />Okay, at my peril, here is my email: the.tim.k@gmail.com Feel free to ask questions on this page, but specifics differ from person to person. One "magic" policy could work for 99%, but the 1% may need something else entirely. PLEASE don't walk into this blindly. Read a book or two, go to a seminar in your area. Have a plan set out from the beginning and stick to it. We've all heard it before, "If you fail to plan, you plan to fail."<br /><br />Your family and your legacy are too important to go flippantly buy a whole life policy and hope that the agent treats you right, even if the agent is a relative or friend. <br /><br />PS In the third paragraph, I mentioned getting your wl policy's db up to $1M. Because the policy is a life insurance policy, the db has to be linked to the cv, so as your cv grows, your db will grow too.<br /><br />2nd PS In the second paragraph, I mentioned funding the policy quickly. If you put too much in too quickly, you can "MEC" the policy. MEC just means that you lose a lot of the investment side potential of the policy because it will work like an annuity, not a max-funded life policy. Ask your agent about the TAMRA 7-pay test. If the life insurance agent doesn't know what the TAMRA 7-pay test is, leave and find one that does. (The TAMRA test is for funding your policy.)Tim Khttps://www.blogger.com/profile/13859098984969932358noreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-89036121914227391572011-01-30T21:21:39.980-08:002011-01-30T21:21:39.980-08:00Christopher in the third comment:
"
I have a ...Christopher in the third comment:<br />"<br />I have a whole life policy that I use as my "Personal Bank" as described by Nelson Nash. My policy is 1 mill and costs me 5k a year. "<br /><br />I wanted a policy that pays 1 mil in death benefit for Whole Life, and the quoted premiums were 27000 a year. How did you get such a low premium? Do you actually mean UL? I am 33 and a non smoker.<br /><br />EAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-8586693812036989202011-01-30T21:19:37.675-08:002011-01-30T21:19:37.675-08:00Someone had posted in reply to someone stating tha...Someone had posted in reply to someone stating that WL tended to go off books at a high rate:<br /><br />"<br />I believe you are simply confused about the policy build. Most the stuff you have said holds true to an all base traditional wl policy. They take a long time to build cash and do go off the books at a high level."<br /><br />What is an all base wl policy? A quick google search states it is a 100% WL plan, which is what I thought this blog was about. <br /><br />Do all newer WL plans consist of a blend of term with WL?<br /><br />Thoroughly confused now.<br /><br />I was all for the WL my agent suggested except now it seems that the CASH value goes to the insurance company, and not the beneficiary. What good is that? Why not put it in some cash deposit, use infinite banking against the cash deposit, as that way at least your benficiaries will get the cash deposit as well.<br /><br />Thanks<br /><br />EAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-27489320243523121132011-01-24T11:37:33.115-08:002011-01-24T11:37:33.115-08:00@ eyetri2
"2) I take this at face value that ...@ eyetri2<br />"2) I take this at face value that it works and is a get rich slow program, but it is portrayed as "too good to be true." Why would any insurance company offer something where you can get more money back than you put in? Everyone is out to make a profit - I am not arguing that, but even if this is 1% of all policies written, why take an eventual loss on even 1 % of your volume? And after say, 10 years, you could really just walk away and extract the CV, which even on the guarantee only scale shown, will be higher than the premiums you paid?"<br /><br />The reason is a one word answer: arbitrage.<br />Why do banks have skyscrapers with marble walls and Bird's Eye maple desks, while you have vinyl siding ad 1/16" laminate covered cabinets? Same answer: arbitrage.<br />A bank will take your deposit of $25,000, and promise you a return of 2.25%. They will then put into reserve approximately $0.35 for every $100, and loan it out to some nice couples $5,000 each for a 18.99% Visa. That difference (arbitrage) is pure profit.<br />Insurance companies take a gamble on when you will die. There are many people that will buy term insurance and not die, or not pay into their whole life policies, allowing them to lapse. There will be no payout, no death benefit, so the insurance keeps that money, they put 1/2 of the premiums in reserve (laws dictate a 1:1 ratio for them) and invest the remainder. Now, the returns that you are shown before you sign on the dotted line are NOT etched in stone. They are predictions based on market performance, because the other 1/2 is invested. They will give you a portion in your cash value, which at some point in the future will also increase your death benefit. The portion that they keep is pure profit, their arbitrage. Because of the difference in the reserve amounts and the fact that lump sums for DB's are paid out (whether the DB's being paid are Term, Whole or Universal policies makes no difference); the reserves are always being adjusted. As a result, the investment plans are looking for small consistent gains rather than homeruns. <br />I hope that this answers you question.<br /><br />PS, if you are expecting to take the money and run in ten years, this isn't the plan for you. A carefully designed plan will outlive you and transfer to your heirs. Buying a car, boat or even a house is child's play. You should be able to do all of this and pocket the interest and tax savings that you would otherwise pay and have a fabulous retirement too.Tim Khttps://www.blogger.com/profile/13859098984969932358noreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-21800053668283975502011-01-23T20:37:23.212-08:002011-01-23T20:37:23.212-08:00Why does no one want to answer Part II of my quest...Why does no one want to answer Part II of my questions? Why would an insurance company have a product where you could actually get more money out than you put into it, even if it does take 10 years? It doesn't make good business sense to do that which is what these all show even at the guaranteed rates.<br /><br />Second, at year 10, is it as simple as saying, I am done with this and want my cash value that I can walk away with a check equal to the Cash Value at that time?<br /><br />eyetri2eyetri2noreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-83287362499576270292011-01-20T10:29:51.863-08:002011-01-20T10:29:51.863-08:00eyetri2
Hi, Nobody will convince you that IBC is t...eyetri2<br />Hi, Nobody will convince you that IBC is the best financial tool on the market, you have to do your homework. If you like to read, here is the book for you "A Path to Financial Peace of Mind" by Dwayne Burnell.<br />Car loan is a perfect example how you can grow your policy and a CV to your advantage. Read Dwayne's book,<br />it's easier read than Nelson's "Becoming your own banker", and you will have most of your questions answered. Building for retirement - Yes, college money -yes, car purchase -yes, growing business, emergency founds, and all others financial needs yes. <br />Just don't wait to long to start your policy, learn from the others mistakes, myself included.Ewa Allenhttps://www.blogger.com/profile/09753980514290467344noreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-13992038805957786872011-01-10T10:04:38.168-08:002011-01-10T10:04:38.168-08:00@ eyetri2
It is not a get rich quick scheme. And ...@ eyetri2 <br />It is not a get rich quick scheme. And in most cases 10-20 years to see full benefits, with longer terms come better results.<br />The car loan program works if your policy was set up and funded correctly.<br />The idea is that you can take the money from the cv , pay for your car, then make car payments to your self rather than to a bank. If you want to pay it back with interest, okay, but that is simply not required. Most policies that are set up with reputable Ins Co.'s and financial advisors/agents should have a very low rate on any loan, or a "zero balance" or "wash loan."<br />A reason for this, if you have a policy (choose your vehicle WL, UL, VUL, EIUL, etc.)then you can use it for a retirement income too. Withdraw loans against you policy or policies without the worry over fees or taxes. See, the loans are loans, not income, so you never trigger a taxable event. Then when you leave this earth, you can pass on the death benefit less your loans to your heirs income-tax free. <br />As a side note, some companies will separately tabulate your loan amounts, while letting your entire cv continue to grow, and only remove the loans at the time of death.<br />Again the Insurance Company and the agent/advisor you choose WILL make a difference. You might want to find a program you like and seek out an affiliate, or a person trained by that group, to ensure that you do not over- or under-fund your plan; or fund it too quickly turning it into a MEC or annuity-like vehicle. Then you will pay taxes, because you will only be able to withdraw, and it will be under LIFO last-in-first-out treatment. Simply put, you will pull out all of the interest first (which WILL be taxed) then your principle, which was already taxed.Tim Khttps://www.blogger.com/profile/13859098984969932358noreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-16904100552814614052011-01-08T05:09:03.262-08:002011-01-08T05:09:03.262-08:00So I've read Pam Yellen's Bank on Yourself...So I've read Pam Yellen's Bank on Yourself. Through the infomercial, I got the essence of what IB is. I have also heard Part 1 from an IB agent and it all sounds great, but there are 2 issues he didn't answer directly.<br /><br />1) Let's use a car loan. I can take the loan out from myself for 5.5% against the CV of my policy OR I can go to my credit union and get a new car loan for 3%. What is the advantage in this example of going through myself?<br /><br />2) I take this at face value that it works and is a get rich slow program, but it is portrayed as "too good to be true." Why would any insurance company offer something where you can get more money back than you put in? Everyone is out to make a profit - I am not arguing that, but even if this is 1% of all policies written, why take an eventual loss on even 1 % of your volume? And after say, 10 years, you could really just walk away and extract the CV, which even on the guarantee only scale shown, will be higher than the premiums you paid?<br /><br />Thanks in advance.eyetri2noreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-29113700197043352872010-12-27T13:04:09.147-08:002010-12-27T13:04:09.147-08:00@Eric from Cali
1.) You do not have to repay the ...@Eric from Cali<br /><br />1.) You do not have to repay the loans. Why? My understanding is that a policy loan is not actually against the cash value, but rather against the death benefit. So if you do not repay the loan, it will be deducted from the payout of the death benefit - ya know, should you get struck by lightning or hit by a bus. It is my recommendation that one does indeed pay back any loans taken against the policy.<br /><br />2.) I do not understand your second question. Sorry.<br /><br />3a) As far as I know, yes, loans are limited to a percentage of the cash value. But this may not always be the case. Contact an insurance broker to answer this question (one that understands the internal workings of such policies).<br /><br />3b) I know nothing about bank CDs. The Infinite Banking is not limited to any particular type of financial instrument. Some people absoulutely abhor whole life insurance, so perhaps they would use a CD...or a mutual fund...or a stack of cash stored between their mattresses.<br /><br />I've been using the IB concept for over a year now (implemented with a whole life policy). My 18 yo daughter is eager to start IB using a checking account.<br /><br />In any case, the IB conept is awesome!Rocknoreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-57684295393777820562010-12-23T21:13:02.864-08:002010-12-23T21:13:02.864-08:00Eric in Cali here.
All this talk, reminds me of t...Eric in Cali here. <br />All this talk, reminds me of the United 1st Heloc loans to pay off your mortgage in 8 to 11 years, without changing your lifestyle.<br><br />A revolutionary concept, which to me is like doing to the banks what they've been doing to us. <i>In that equation</i> you are using the power of compounding to reduce your principle, <b>now instead of later.</b> Thus avoid interest. The only scam was that the company charged you $3,000 for a program you could probably re-create with Excel. True, people who paid off their loans in 8 years, saving tens of thousands in the process, probably didn't care about the $3,000. <b>People just immediately thought too good to be true, must be a scam.</b> <i>Good luck getting a Heloc these days though...</i><br><br />Anyways, I have just found this Infinite Banking Concept, and know very little of insurance. Now I am wondering:<br />1.) Really Rock, you don't have to repay these loans? How does that play out?<br />2.) Is there a price point at which this becomes viable? Would have to do with income and tax savings yes?<br />3.) I imagine the loans would be limited to the Cash value I have built up in the Life Insurance policy right? So how is this better than Jeff's example of an interest compunding CD coupled with a loan secured by that CD? Just tax savings? Do tell, do tell.<br /> <br />Thanks in advance, and Happy Holidays to all.Erichttp://www.stanhopeinvestmentsllc.comnoreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-83666946216356422432010-12-20T06:56:49.841-08:002010-12-20T06:56:49.841-08:00To the advisor that wrote in on 12 Nov 2010.
Conta...To the advisor that wrote in on 12 Nov 2010.<br />Contact an Insurance company, perhaps Indianapolis Life or Old Mutual (both have working knowledge of this concept [great knowledge on the EIUL]), they can give you some help. Also, no one has had their money in the S&P (which formally started in 1956 or '57) for that long.<br />Consider, too, that your future(and current) clients can borrow money from one policy to fund their retirement without worrying about selling equities (stocks, mutual funds, etc.) during periods of decline.<br />The biggest problem is trying to determine which is better: Whole Life {WL}, Universal Life {UL}, Variable UL {VUL}, Equity Indexed UL {EIUL}, etc. Just remember not to "MEC" the plan (over fund or fund too quickly making it a modified endowment contract {basically an annuity}) and to follow the TAMRA 7 pay test- which actually allows you to fully fund the plan in 5 years not 7, if you do it properly. Then look at funding new plans about every 5 years, perhaps using a different type of whole or universal policy. But keep in mind that EIUL can be "diversified" by contributing more than once annually, earning differing rates based on the timing (but don't try to "time" the market).<br />To those who pick on people who buy term and invest the difference, maybe they have a Return on Premium (ROP) built into their plan.<br />-Tim<br /><br />PS The policies will continue to grow the cash value even while the clients are with drawing, just be wary that other than "zero-wash loans" are risky/tricky. And the death benefits have to go up as cash value climbs, per Federal Govt. guidelines. I think TEFRA and DEFRA cover that... I think.Tim Khttps://www.blogger.com/profile/13859098984969932358noreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-24931135468708051832010-11-12T12:30:53.437-08:002010-11-12T12:30:53.437-08:00I am a financial advisor and read Mr. Nash's B...I am a financial advisor and read Mr. Nash's Book about 6 months ago. Ever since then I have continued to read articles and blogs such as this one about the Infinite Banking Concept. I am now seriously questioning many of the investing principles I have learned and have been using with my clients over the years. Nonetheless, one question I still have is whether or not IBC ends up being better than investing in a tax qualified plan? For example, the real return (or CAGR)of the S&P 500 from 1900-2009 is 9.52%. I found this by using a CAGR calculator at http://www.moneychimp.com/features/market_cagr.htm. <br /><br />Anyway, if someone has a limited amount of income they can put into their IBC policy or 401k (let's say $1000 per month) can someone give me an example of how the two would compare after 10,20, 50 years? I know they are different concepts but at the end of the day we are all trying to maximize how much money we have in retirement and I would like to learn more about how they compare. Thank you in advance....Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-64116662190976561522010-10-12T13:42:03.458-07:002010-10-12T13:42:03.458-07:00Fellow Canadians, if you are looking for futher in...Fellow Canadians, if you are looking for futher insight on the challenges behind the IBC in the Canadian marketplace, including some number-crunching analysis, please visit my blog entry.<br /><br /><a href="http://www.essentialbenefits.ca/insurance-blog/index.php/2010/10/12/the-infinite-banking-system-scam-or-legitimate/" rel="nofollow">Click here for my Canadian Insurance Blog on the IBC</a><br /><br />Thanks,<br />VictorVictorhttp://www.essentialbenefits.ca/insurance-blog/index.php/2010/10/12/the-infinite-banking-system-scam-or-legitimate/noreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-91383264131005317432010-09-29T10:09:04.424-07:002010-09-29T10:09:04.424-07:00Hey Anonymous July 5, 2010 9:48 AM
Please put a na...Hey Anonymous July 5, 2010 9:48 AM<br />Please put a name in here so it's easier for us to respond.<br /><br />You haven't done much homework on IBC. Your statements show this. <br /><br />A properly designed policy will have cash value from day 1. You can borrow against the cv as soon as your first premium check clears your bank account. <br /><br />You keep calling IBC an investment. IBC is a financing process with customized whole life as the financial tool. <br /><br />As for policies coming off the books in 18 months...where did you get that info? I set up around 100 new policies a year and haven't had one come of the books in 5 years. I think you keep referring to traditional old school WL policies...they do take a while to build cv and I have seen those go off the books in 18 months. <br /><br />As for the company controlling your money, they can't just do whatever they want. You have obviously never looked at an actual contract. If you had, you would have read that every "charge" is clarified as to the minimum and maximum. <br /><br />As for you being an insurance agent, I would suggest you do your due-diligence before talking negatively about something you clearly don't understand. <br /><br />I believe you are simply confused about the policy build. Most the stuff you have said holds true to an all base traditional wl policy. They take a long time to build cash and do go off the books at a high level.<br /><br />I am hopeful that you see that I am just pointing out facts and not trying to be rude to you as an individual. Good Luck!Jeffhttp://veracityfinancial.comnoreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-91959710320665799422010-09-24T13:50:11.131-07:002010-09-24T13:50:11.131-07:00My insurance agent just brought up IBC to me today...My insurance agent just brought up IBC to me today. My husband and I are in our early 30's, own our own home, and bring in about $60,000 a year between the two of us. I think that I understand the basics of this system. My concern is that it would be difficult for my husband and I to pay out big premiums in the beginning and it seems as if this wouldn't work for us without the big payout ability. Also, my agent seemed to be trumpeting the big DB for our heirs. Frankly, I made the money and I want to spend it in my lifetime. I would be concerned about a big DB now if my husband or I (or both or us) were to pass but down the line, I'm more concerned that we'd have enough money to live our daily lives, have some fun, and afford medical care/nursing homes as we aged. So I guess my question is, is IBC for us if our goal is to have a large amount of money that we can spend at will in our retirement and we don't really have the ability to payout a large amount right now? Sorry if this is too basic for this blog. I also have to say that IBC seems too good to be true and I'm always leary of the next hot investment product. I mean, weren't mortgage backed securities sold as a 'sure thing' too? And who's to say that the insurance companies selling and backing the products wouldn't fail the same as WaMu, Bear Stearns et. al? Would anyone have predicted in 2006 the carnage that was to come? Anyway, just a person on the street point-of-view. Thanks to all if you're still reading.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-13861514697985414332010-07-29T11:37:43.417-07:002010-07-29T11:37:43.417-07:00@ rex, please share which mutual fund you are gett...@ rex, please share which mutual fund you are getting 10% with!! i think anyone here would be interested in that. The problem is you may get 10% here and there but a steady 10% is impossible. Great article by the way, I use the IBC myself and think it's a way better retirement savings vehicle than a 401k or IRA or any other government sponsored retirement plan.Nick D.https://www.blogger.com/profile/01902544463340218960noreply@blogger.comtag:blogger.com,1999:blog-8529580665294663953.post-71168861393171214932010-07-05T09:48:30.470-07:002010-07-05T09:48:30.470-07:00If you're borrowing money whether they call it...If you're borrowing money whether they call it yours or not, they get interest - they make money and they pay the tax. The cash value is only non-taxable as long as it is less than what you spent on the premiums. You put in more than you can get out. Again they made the money and paid the tax. You simply gave them the money to enable them to do this. No cash value the first year, because it went to the salesman's commission. No cash value the second year because the company had expenses too. Nothing you can "borrow" the first two years, so what kind of investment is that? And the third year, what an investment! Check the records for yourself. Most cash value policies have a life of about 18 months. Why do you suppose that is? They took the money and ran. Just remember when you write the check to the insurance company, it's ALL THEIR MONEY. You have no separate account - it's theirs. They can decide to do with it what they want. Charge you what they want - read the policy, all of it. They have been doing this for over a hundred years and they have many, many billions in assest. How do you think they got them? Been an insurance agent for a long time. Just another sales pitch by the insurance industry. These companies are relying on your inherent greed. If you really want to make money - stay away from insurance companies. All their products are aimed at making them money - not you! You use insurance for exactly what it was meant for - to replace a loss. If you are set on making money through insurance, buy an insurance company stock.Anonymousnoreply@blogger.com