Infinite Banking concept

[DHK]

@Allen Trent

I had to take a break from this thread for a few days because I was getting frustrated - and it's my fault for being unable to communicate clearly - or being baited in the first place.

First, thank you because I know you're trying to help me be as accurate as possible. We are all trained to make sure that all our numbers are accurate in order to make a proper recommendation.

I'm not making a recommendation. It's SO different of a way of working than what we are taught to do by our industry!

Here's the reality: The accuracy of the numbers is completely secondary for this strategy.

Here's the question: "Do you want your retirement subject to the tax code or not?"

Do you want to pay taxes... or not - using the tax code?

If you DO... keep doing what you're doing.

If you DON'T... life insurance, properly funded with a quality company can help you do that.

My job is to simply teach people how the tax code works in retirement. Show them how traditional planning works... and how the tax code will treat life insurance in retirement.

Which one do you want?

No recommendation. Only education. And the client will sign a disclosure statement that they are making these financial moves for THEIR reasons, not as a "recommendation".

If they want it... great! Let's do it!
If they don't... great! DON'T do it!

I'll also say that the accuracy of TODAY'S numbers... isn't nearly as important as what is coming down the line.

Did you know there's a US Senator proposing an IMMEDIATE INCREASE OF 15% TO THE TOP TAX RATE TO 52% TO COVER THE "STIMULUS"???

Do you or your clients want to be on the hook for that... or not?

Those are the only questions that matters. Everything else... is minutiae.

By the way: attorneys don't give advice. They only tell you the ramifications of the choices you are considering... but they don't give you advice on which way to go - only lets you know of the consequences.

But our industry teaches you to give advice and to be on the hook for that advice.

We in The Breakaway League... don't do that. We simply educate and let people make their own decisions.

 

[Allen Trent]

@Allen Trent

I had to take a break from this thread for a few days because I was getting frustrated - and it's my fault for being unable to communicate clearly - or being baited in the first place.

First, thank you because I know you're trying to help me be as accurate as possible. We are all trained to make sure that all our numbers are accurate in order to make a proper recommendation.

I'm not making a recommendation. It's SO different of a way of working than what we are taught to do by our industry!

Here's the reality: The accuracy of the numbers is completely secondary for this strategy.

Here's the question: "Do you want your retirement subject to the tax code or not?"

Do you want to pay taxes... or not - using the tax code?

If you DO... keep doing what you're doing.

If you DON'T... life insurance, properly funded with a quality company can help you do that.

My job is to simply teach people how the tax code works in retirement. Show them how traditional planning works... and how the tax code will treat life insurance in retirement.

Which one do you want?

No recommendation. Only education. And the client will sign a disclosure statement that they are making these financial moves for THEIR reasons, not as a "recommendation".

If they want it... great! Let's do it!
If they don't... great! DON'T do it!

I'll also say that the accuracy of TODAY'S numbers... isn't nearly as important as what is coming down the line.

Did you know there's a US Senator proposing an IMMEDIATE INCREASE OF 15% TO THE TOP TAX RATE TO 52% TO COVER THE "STIMULUS"???

Do you or your clients want to be on the hook for that... or not?

Those are the only questions that matters. Everything else... is minutiae.

By the way: attorneys don't give advice. They only tell you the ramifications of the choices you are considering... but they don't give you advice on which way to go - only lets you know of the consequences.

But our industry teaches you to give advice and to be on the hook for that advice.

We in The Breakaway League... don't do that. We simply educate and let people make their own decisions.

Sorry about that. I do get deep in minutiae on a regular basis.

But I was following you down that rabbit trail because you had inserted the minutiae of math & %s earlier when stating equivalent returns & specific withdrawal rates, taxes, investment costs.

I just didn't see the aspect coming about you saying the math you used was not important in the concept. if it wasn't important, you wouldn't have brought it up nor utilize it in your examples or spreadsheet.

I would agree that we, as idea & concept people, are not fully responsible for the current or future math, but I believe we shouldn't bring those same numbers into the sales pitch if we cant rely on their accuracy. only reason to state you have CPAs involved is to give credence & support to the concept

Again, I believe in it for the proper target market. 3 cases that I helped agents place this week alone: $38k yr max funded IUL, $350k single premium case & $5M 2nd to die term that will be converted to IUL in August when the carrier IUL is filed. All 3 caes were based upon tax efficiency of the clients current tax return situation & how the product improved that current known situation. So, I am definitely not fighting you from lack of belief or support of concepts, just mostly in regard to the facts & math as my understanding is of those items

Good conversation & all good. still think you are one of, if not the best, on this forum

 

[Lloyds of Lubbock]

I have heard it said, If you understand the concept the numbers aren't important.
If you dont understand the concept the numbers aren't important.

As far as tax rates extremely wealthy people have done a very good job of shielding their income.
If someone is actually paying taxes at the top rate, he probably needs a new CPA.