- 11,512
Infinite Banking concept
- Thread starter HoosierLife
- Start date
- 5,049
agree completely & that has been my concern. I have always & tell agents to discuss that money can be used, but don't show the best case scenario like I see being done today in the industry, most IUL I see show the client putting money in until 65, then taking max projected distributions from 65-80 & then stopping distributions. the justification is that 80-100 wont need the money as much as 65-80. but that merely makes the software project way more distributions from 65-80. but if the client relies on that concept(not including it was merely an interest projection) then they will never remember they only planned to take money out for 15 years & then stop. just taking 1 extra year will decimate the policy.
on a positive note, most of the worst case taxable lapses I mentioned earlier are avoided with todays products as most have an overloan agreement to keep the tax bomb from happening...………….if the client stays with the same carrier. If I am 75 & see my policy shrinking, I am sure I would call to cancel or 1035 out of fear or losses in that year. I see most over 75 age people already do that with any of their market investments when there is losses. I don't think they will act differently some day merely because an IUL or WL policy shrinks & they remember that was the plan. they will likely opt out.
I honestly believe the really low pricing of some of these products, especially the no lapse protection, know that few, if any, will stay in force in those later years.
I own the products & plan to use them in this fashion to a lesser extent, but who knows if I will be mentally stable enough not to make a stupid mistake out of fear in 30-40 years & unravel the design I had of the products
- 5,049
Always loved this. Have watched the full video at least 50 times & sent it to others many times.
I still believe he is mostly talking about using it as play for tax efficiently at death & a extra cushion for "if you need" it retirement money. he is almost always talking about those that are in retirement or near retirement. I have not heard him talk about planning it as a primary source of retirement income nor talk about a target audience in age brackets of 30-45 where it needs to be to allow time for the life plan to build up & develop.
Love his videos for the main strategy of the age 60-75 clients who have saved too much in different plans or don't need their RMD income to use those to leverage in life insurance plans for the tax free death benefit & CIA benefits
- 11,512
Fair enough. I'm not going to change your mind - and that's not my job. I certainly heard it differently than you are hearing it - taking money from "forever taxable" to "never taxable" by using IRA distributions to purchase a life insurance policy and funding it to the maximum levels. I don't necessarily see how you could interpret it any differently, but it's right there.
As John Savage essentially said - we all have a compass within us to help guide us to what is comfortable for us or not. I never want anyone to do anything they aren't comfortable in doing - agent or consumer. It doesn't necessarily make it wrong... it just makes it uncomfortable.
As John Savage essentially said - we all have a compass within us to help guide us to what is comfortable for us or not. I never want anyone to do anything they aren't comfortable in doing - agent or consumer. It doesn't necessarily make it wrong... it just makes it uncomfortable.
I agree completely! This is why I prefer Penn Mutual.... they have an overloan protection rider. Client can't overloan the policy and lapse it. (One America has one also).
This is a huge reason to look at using these companies for this type of planning, the protection this rider offers is huge....not to mention better div's & ratings, more cv growth, & higher income stream payout.
I wish all WL policies had this.
- 5,049
agree. more WL should have it.
Also wish these "LIRP" plans promoted came with a "Keep me from being stupid when I am old & cancelling it when I see ugly looking annual statements when it is shrinking" rider.
Worried the call center servicing them some day or rare chance an actual agent will be servicing will even attempt to analyze & beg them to not surrender & explain the big 1099 coming with a surrender
- 2,386
I am a spreadsheet guy. Show me the numbers on a document where the "assumptions, estimates, etc" can be discussed and debated.
What I have found with infinite banking often is that some of the salespeople (not you DHK) are using slight of hand to provide juiced up numbers. Examples of this could be assuming consumers are paying Load fees on their mutual funds or a total expense ratio of 2% or assuming a consumer is spending 40% of their gains on income taxes or ignoring other tax free methods of generating returns.
What I have found with infinite banking often is that some of the salespeople (not you DHK) are using slight of hand to provide juiced up numbers. Examples of this could be assuming consumers are paying Load fees on their mutual funds or a total expense ratio of 2% or assuming a consumer is spending 40% of their gains on income taxes or ignoring other tax free methods of generating returns.
- 477
- 477
I'm a numbers guy. Just show me how one million in cash value is better than three million in a Roth IRA or 401k for retirement income. If you can I will contract with that company Monday morning.
- 11,512
I created my own spreadsheet analysis and I've written about it myself. Here's my short article:
https://davidkinderfinancial.wixsit...d-to-equal-the-tax-and-economic-contract-bene
I've already posted podcasts with Bryan Bloom, CPA - the author of the books in question. But I'm not going to show my analysis. There are certain things that I have that I consider 'proprietary'.
I've posted the book links on Amazon for $10 for each of the kindle versions.
And I've posted the link to register for the next free webinar on May 12th.
I'm not proving it to anyone here after *I* had to pay the price to learn it. And you want me to just give it away? Nope.
One HUGE lesson I learned from Simon Sinek is that the objective of selling is NOT to sell to people who need what I have to sell. It's to sell to people who believe what I believe.
If you want to understand and believe it... put a little skin in the game as I already have: listen to a Bryan Bloom interview, buy his books, and/or join the webinar on May 15th.
But if you don't believe that taxes are a big deal in retirement... you won't believe it anyway.
https://davidkinderfinancial.wixsit...d-to-equal-the-tax-and-economic-contract-bene
I've already posted podcasts with Bryan Bloom, CPA - the author of the books in question. But I'm not going to show my analysis. There are certain things that I have that I consider 'proprietary'.
I've posted the book links on Amazon for $10 for each of the kindle versions.
And I've posted the link to register for the next free webinar on May 12th.
I'm not proving it to anyone here after *I* had to pay the price to learn it. And you want me to just give it away? Nope.
One HUGE lesson I learned from Simon Sinek is that the objective of selling is NOT to sell to people who need what I have to sell. It's to sell to people who believe what I believe.
If you want to understand and believe it... put a little skin in the game as I already have: listen to a Bryan Bloom interview, buy his books, and/or join the webinar on May 15th.
But if you don't believe that taxes are a big deal in retirement... you won't believe it anyway.
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