Tuesday, May 27, 2014

Another Wall Street Newsletter Endorses The Infinite Banking Concept

The idea is catching on.
Look at the suggestions that insurance contracts are one of the ways to ease the tax burden.
Insurance Contracts: While many people scorn whole-life insurance policies, great strides have been made in bringing down the fees on such products and making them work for the client.
The ba! sic structure, as outlined by Nelson Nash (The Infinite Banking Concept) and by others since, is to invest in a high, immediate cash value policy wherein dividends are earned even when money is borrowed out of the policy. This allows you to put money to work and then borrow it out as and when needed. The dividends paid to the policy are based on earnings that the insurance company declares, and monies borrowed are not taxable.
When you die, the policy pays out to your heirs whatever money is left after covering any loans outstanding. This arrangement has the added benefit of transferring money, tax free, to your family because, as an insurance policy, the proceeds bypass probate as long as you’ve specifically named your heirs in the policy!
I’m a fan of this type of holding, but I’m not an expert in the field, which is why we’ve invited a guest speaker to our Irrational Economics Summit this November to discuss the to! pic. Keep your eyes peeled for more information on this in the next few weeks.
Given the enormity of the retirement funding issues we face in the years ahead, every single person with assets or income should be thinking about the best way to protect what they have. If you don’t, then I have no doubt the taxman is going to come looking for it!
By Rodney Johnson

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