Five Reasons To Borrow From a Whole Life Policy instead of a Bank

Here are 5 of the best reasons to borrow from the insurance company against your Whole Life policy versus borrowing from a bank: 

* No application process. I ask for the money and I get it. I don't have to qualify...ever! 

* Instant liquidity of repayments. Every dollar I repay on my policy loan is instantly available to be borrowed again without application or qualification, as opposed to a bank loan where payments simply reduce the unpaid principal balance. 

*  Another huge reason for borrowing against your life insurance policy is the flexibility of the repayment plan.   This is especially important if you are business owner with cash flows that fluctuate monthly.  Re-pay policy loans based on your schedule, not the banks.  

* Privacy.  If you have kids to put through college, consider that your bank assets, and even your kid's 529 account, will account against them when qualifying for finanical aid.  You can pay the retail cost of college but wouldn't you rather get a discount?  Strategically placing money in life insurance contracts shields this money from prying eyes.  It also helps you in retirement because policy loans used for income are tax-free and won't bump you into a higher tax bracket.  Retirees with 401k distributions have to report taxable income that potentially reduces Social Security benefits.  Ouch!

* Uninterrupted compounding growth of your cash values.  Simply put, you continue to grow your wealth even when you take a policy loan to use somewhere else.  I call this "Dual Compounding".

Albert Einstein is noted for saying:

"Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it."

In summary, total control is in the hands of the policy owner.  You decide how much and when you pay back the loan.  For best results, don't "steal" (borrow without setting up a payment schedule) from yourself.  Maintain discipline.  Paying back your loan re-capitalizes the policy for future use.  

Let me know what questions you have about Infinite Banking.  You can find me here:  www.IBC.guru

You can also hear me talk about Infinite Banking on my podcast here:  www.TheFifthEdition.com

Thank you,

John Montoya

Infinite Banking IUL

 If there ever were two things that don't go together it's "Infinite Banking" and "IUL".

I try to avoid Facebook like a plague but every now and then I do log in.  There are just too many ads and rants for my liking.  One of first ads I saw was for, you probably guessed it, "Infinite Banking IUL".

If you should see one of these ads, videos, or blogs posts from anyone touting the benefits of Infinite Banking, run in the other direction.

The Nelson Nash Institute is the only place on the internet where you can find an Infinite Banking Authorized Practitioner.  Here's the link:  

https://infinitebanking.org/finder/

One of the reasons the Nelson Nash Institute was created was to root out the imposters posing as Infinite Banking experts.  This was largely because advisors were liberally taking the Infinite Banking strategy and then selling IUL's (Indexed Universal Life insurance).

Only Dividend Paying Whole Life policies are to be used for Infinite Banking.  The reasons are multiple but the main one is that a Whole Life policy when structured for Infinite Banking avoids unnecessary risks embedded into the flawed design of an IUL policy that poses long-term risks on the performance of these policies.

No such performance risks exist with a Whole Life policy because the premium on a Whole Life is fixed from day 1 and there are no surrender penalties.  Cash values are readily available to be used as soon as 30 days.  IUL's doesn't have the same set up.  

And this is just the tip of the iceberg.  If you are being quoted an IUL, let me know.  I can walk you through the in's and out's of an IUL and show you what a true Infinite Banking plan looks like.

You'll find me here: 

www.IBC.guru

Thank you,

John Montoya

Discussing Financial Milestones as a Parent

 

Discussing Financial Milestones as a Parent

It can sometimes feel awkward or challenging to talk about money and the future, especially with your children.  But if you want to help minimize stress for everyone, you may want to prioritize certain conversations. Whether your kids are adults, teens or younger, here are a few big financial topics to keep in mind as you work to set the right expectations. Taxes Since parents can claim their children as dependents on their taxes, it’s important to discuss this tax credit as your children grow older and begin to earn their own money. Specifically, you can prepare your children for the date when they’ll no longer qualify as dependents.  Big Expenses  Education: Parents who want to help pay for college and offset the burden of student loans can talk to their kids about savings, budgeting and what schools make the most sense.  Weddings: Many parents pay for their children’s weddings in part or in full. Sooner rather than later, it may help to have a conversation about how much you’re willing to contribute, if any. Also: Are you planning to give money for a wedding specifically, or could your child use these funds for something else, such as a down payment on a house?  Many parents may also currently be helping their Gen Zers or millennials with day-to-day expenses and housing costs. Are you communicating with each other clearly about this assistance, and has it been factored into your long-term financial vision?  Your Retirement It’s important to talk about your retirement plans with your children, particularly as they become adults themselves. Consider being open about how much you have saved for retirement and how big expenses — expected or unexpected — could potentially affect your plans.  Setting a Strong Example  Building a secure financial future takes meticulous planning, budgeting and frequent communication. Taking a careful approach can help secure your own comfort and demonstrate fiscal responsibility to your children.  One the best ways to pass on your financial knowledge is to share what you have done successfully.  A great resource that is easily shareable is our podcast on Infinite Banking which you can find at www.TheFifthEdition.com. What I've also done recently is 3 way virtual meetings between parents, children and myself to help bridge the gap of knowledge. If I can help, let me know.  You can always reach me here:  www.IBC.guru Thank you, John Montoya Refer a Friend Schedule A Meeting Send Me a Question Reviews