With a UL, aren't you also paying the premium and fees throughout the length of the contract, at some point eating away at the CV? You may be making a return on your CV but you are also paying premiums.
Also, if you're only making $35k a year, where are you going to find a way to dump that kind of money into investments?
Posted: Thu May 01, 2008 10:18 pm Post subject: ul
If you are going to do infinite banking just buy WL. If you are going to just let the money sit and take your chances, then God bless you and I hope you have good luck. _________________ Register Now to have your Insurance queries solved.
Posted: Mon May 26, 2008 7:19 pm Post subject: Infinite Banking
One key is find a Life Co that continues to pay the dividends with an outstanding loan (not all companies do)
Absolutely right to look beyond cars when cash allows: I would use the money in the real estate purchase mentioned, or perhaps "self-mortgage".
One idea is to create an LLC as an equipment leasing company for a small business owner to self-lease/rent cars, equipment, etc. Enhances tax deductions, by allowing a higher interest rate to be charged and offers asset protection.
I use WL for I. Bank strategy to guarantee it will be around to use. EIUL only has guarantee if enough cash to cover costs which continually rise. Not as workable when you are constatntly borrowing and need to "chase a return" to keep it funded.
I use EIUL for other financial strategies (charitable giving, NQDC, WBTs, "Roth" type savings, etc.) _________________ Register Now to have your Insurance queries solved.
Posted: Mon Jun 09, 2008 4:06 am Post subject: Misunderstanding of how to use which
I am a licesened life insurance agent, among other things (LifeGroupLLC.comto see my resume). I preach using EIULs for equity management as Doug Andrew preaches. EIULs are the best investment around BUT are not appropriate for the infinite banking system idea.
The reason Whole Life is to be used with IBS is that it pays dividends based on the face value, not the cash value. EIULS (and any universal life) pays interest based on the cash value. As a result, your death benefit do not continue to grow even though you pull money out. With Whole life, which does have a lower return, your death benefits continue to grow because the dividends, based on the face value, fund more "paid up" insurance. As a result, you can put more in.
That said, I still have to run the numbers and see which one would end up working better - I encountered the IBS idea just few days ago and therefore didn't have a chance yet to do full analysis and run simulations. It could be that the superior return of the EIULs trumps the dividends efffect. _________________ Register Now to have your Insurance queries solved.
Posted: Sun Jun 22, 2008 12:18 am Post subject: IBC
In answer to the first question and to follow up on "Guest's" remarks, this is a great concept and what I've always liked is it promotes honesty and true help from financial planners. It can't be done if not done right. The only advice I would give is stick with the whole life. The concept is becoming your own banker and the policy is the tool. Use a safe place for your money that is going to grow almost guaranteed, increase your wealth by becoming your own banker and financing your cars, home, debt, etc. Good Luck! _________________ Register Now to have your Insurance queries solved.
Posted: Wed Aug 06, 2008 9:04 pm Post subject: IBC
The best thing to do is this. If you can afford a couple hundred dollars a month put it into a new whole life policy that is MAXIMIZED and OVERFUNDED, just under the MEC guidelines. If you really feel you need the coverage get a little term on the side to arrive at the death benefit you need. The policy, as you use it for banking, etc, and as the paid up additions are put in place, you will be able to increase that death benefit dramatically. Within 15-20 years you should have all the death benefit you'll ever need as long as you use the concept correctly.
I would stick with whole life in order to maintain guaranteed growth and safety. Its about banking more than the policy growth.
Jake
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