Wut?
PUA and infinite banking, bank on yourself etc...
- Thread starter SamIam
- Start date
- 11,299
I think he's looking at the total payouts to the agent, general agent, up-line, etc.
However, I don't know if WL is that high? I'm sure IUL is - which is why so many IMOs promote it, but I don't think WL does - which is why it's usually limited to career agencies.
Just my thoughts - nothing to back it up though.
However, I don't know if WL is that high? I'm sure IUL is - which is why so many IMOs promote it, but I don't think WL does - which is why it's usually limited to career agencies.
Just my thoughts - nothing to back it up though.
I don't use any carriers that are near 8% interest rate on loans. Most I use are 5% or less. Had a client 2 weeks ago request $100k from his policy, it was wired in 1 day. He was able to put a bid on something for his business... and win it. The turnaround will probably be 3 months, so only small amount of interest paid on $100k.... and his long term ROR will be tremendous on that.
That's the power of infinite banking.... access to capital. If he had to apply for a loan, he'd have never had the opportunity to win the bid, because he wouldn't have even been in the game. They'd still be killing him for documents in loan underwriting.
That's the power of infinite banking.... access to capital. If he had to apply for a loan, he'd have never had the opportunity to win the bid, because he wouldn't have even been in the game. They'd still be killing him for documents in loan underwriting.
Yes the full compensation line. My numbers may be old. Based on NWML and NYL from the old days. Don't think it has changed much. Why do you think there is very little cash value in the first year on just a traditional basic WL policy
I'm sure IUL is - which is why so many IMOs promote it,
Actually no. IUL is 135% of target premium and target is much lower than the base WL premium in most cases.
5% much better but still a lot more than 0 to 4% .
Access to cash vs a loan is also comparing apples to dogs. If you take the same premium and invest that over the same number of years I would wager the client would have more cash available in his investment account than the cash value available for a loan from his life insurance policy and no interest to pay .
Everyone seems to forget a policy dividend is not an interest rate the policy earns it is a % of the company profits that is paid to policy holders. The interest rate equivalent is more in the 2% to 3% zone. That is why even in a WL policy with max PUA break even, the amount your paid in vs the amount you get back if your surrender the policy, falls in the 8 to 12 year range. You have to make up the premium load and other policy costs .That takes long time at the low rate of return the policy earns.
Before you go into investment risk The client could just invest in government securities or short term Muni's and get an interest rate higher then what the WL provides and not pay the 8% premium load so he would still be better off than infinite banking concept
You need life insurance buy life insurance you want a long term alternative to a Roth or you can't do a Roth Life insurance is the way to go.
- 11,299
- 11,299
Depends on DB option A or DB option B.
- 4,608
while I agree with most all your points, would you at least concede that some business clients saved their businesses in March & April of this year by accessing the cash value of their policies? no bank was looking to loan them anything, many had the bulk of their money tied up in their business & had they had the money invested in the market, it had dropped by 30% in March. they would have had to sell while down & still owe taxes on some gains they had made over the last 5-10 years. I know of several businesses that took money from their WL & UL (i didnt sell them). I believe in moderation in all, so I own qualified plans, after tax brokerage accounts & have sizeable amounts in permanent life for both tax efficiency & ease of access.
Please direct me to the short term Munis & government securities that will generate 3-4% currently. Other than old ones, I cant locate anything paying near that doesnt come with some added risk of being a lower rated bond.
- 11,299
- 11,299
Where your money lives is far more important than what it earns... at least according to the tax code.
I don't chase rates of return. I show people how to use the tax code to legally divorce their wealth from the IRS and double or triple their retirement cash flow.
That has nothing to do with rate of return, but I do know the equivalent rate of return I'd need to get every year in an IRS regulated retirement plan to do the same thing. (It's high.)
Allen, I am not saying I think Life Insurance is bad. I think it can be wonderful as a long term cash accumulation vehicle and a great supplemental tax free retirement income plan. I know having a big bucket of cash in an insurance policy comes in handy when a business is in a pinch. It is the specific concept of Infinite banking that is BS.
Here is an article from Barrons on some CEF muni funds to take a look at as a starting place
Where to Find the Best Municipal-Bond Fund Buys
By
Randall W. Forsyth
June 10, 2020 11:28 am ET
Sorry I could not figure out how to link it but at least you can search it.
Here is an article from Barrons on some CEF muni funds to take a look at as a starting place
Where to Find the Best Municipal-Bond Fund Buys
By
Randall W. Forsyth
June 10, 2020 11:28 am ET
Sorry I could not figure out how to link it but at least you can search it.
