Wednesday, March 17, 2021

Underwriting Guide: Table for Height and Weight

This is one insurance companies table but all insurance companies are going to be within the ranges provided below.

Based on your height and weight alone, what rate class would you qualify for?

If you have questions about your health and are curious about whether you can get approved, schedule a consultation here:

Saturday, March 13, 2021

IBC Mailbag: How Does A Policy Loan Create Positive Arbitrage?

Question from a client:  I believe I saw that the current interest rate to borrow on our policies is 5%.  I also believe I saw or heard somewhere that the current rate of growth within our policies is 2-3%.  Are these numbers correct?

First, a correction.  The cash value growth on Infinite Banking whole policies funded with the Paid-Up Additions (PUA) rider are in the 4-5% growth range.  Maybe a just a tad higher depending on age and health rating.


Where you might hear 2-3% talked about on the internet is specifically on the guaranteed interest portion of the policy which does not include dividends.  That portion of the policy grows at 2-3% over the life of the policy, then add dividends and that’s where you get to the 4-5% range.


Interest rates are relative.  When borrowing rates are higher, so is the savings rate, vice versa.  Right now with interest rates being historically low, dividends are also historically low.  The reason why all life insurance companies tie the borrowing loan rate to the Corporate Moody Bond Index is the because they are attempting to match the yield they are receiving on the majority of their investments.  So if interest rates rise, so the will the dividend performance to maintain parity within the policies when borrowing.


Going just a bit further, if the growth is 5% and the borrowing rate is 5%, we would say it’s a wash.  In actuality it’s not because 5% is compounding on the full growth whereas 5% simple interest is being applied to only the portion of cash value borrowed.  There is a positive arbitrage there.  If fact, there’s even a positive arbitrage 4% compounded against 5% simple interest.  Plus as loans are repaid the positive arbitrage spread grows further still. 

Here's why:  100% of each loan repayment you make is applied to principal first, the loan interest is only calculated on your policy anniversary date.  Remember this is way more consumer friendly than any bank loan where the bank will always make sure they get paid their interest first!  


Appreciate all the questions.  Please let me know if you have any other!

Thank you,

John Montoya

Thursday, February 25, 2021

Retirement Planning 101: The Income Trap

What if the biggest risk to your 401k isn’t risk of loss or unknown fees dragging down your returns over time?

What if the biggest risk is you might have to live off of 3 to 4% withdrawals per year in retirement?

If you’re within 10-15 years of retirement and not familiar with the “Safe WIthdrawal Rate”, you should be.  This is the percentage amount Wall Street recommends you withdraw each year to avoid running out of money in retirement.

You’re being told to max out retirement contributions but it’s only half the story.  As you get closer and closer to retirement, the real story is how much income will you generate and how?

Let’s face it, if you’re not retiring with a pension, you need an income plan more than you need a savings plan.  The biggest 401k/IRA asset you accumulate still leaves you stuck surviving off a “safe” 4% withdrawal rate. 

Every $1,000,000 you save would only net you $40,000 a year, and this is before taxes! 

Do the math for your situation.

How much will you need saved to generate the income you need?

Here’s Wall Street’s retirement plan for you.

Save more, work longer, take more risk, or make sacrifices to retire sooner.

Or it's some combination of those options.

Which option do you choose?

None, right?

Hopefully, you’re starting to get the picture.

You see, if you’re within 10 to 15 years of retirement, every dollar you save for your retirement must now be allocated as efficiently as possible to produce as much income as possible.  

Instead of following mainstream financial advice and building the largest 401k or IRA possible in an all market based approach, you should be learning how to create the largest and most predictable income stream for your retirement with the least amount of risk and with as little money as possible.

This means having a retirement plan that is ruthlessly efficient in obtaining the highest and most desired retirement end goal:  Income and as much of it as possible!

Sadly, here’s the reality you'll face when you go to retire unless you get your retirement income conversation started now:  

All your retirement assets in the market is the riskiest retirement strategy you can take unless you know the answers to these 2 questions:

How long will you live?

How much income will you need?

If you don’t know the answers (and who does?), should you really be risking 100% of your retirement on the probability of lasting at least 30 years at a 4% withdrawal rate?

Risk of loss isn’t the biggest threat to your retirement plan.  

The risk of not having enough income each month should be your #1 concern but you’ve been led to believe having the biggest balance sheet is all you’ll need to have a worry free retirement. 


That’s why retirement income planning is on the verge of the biggest changes in over a generation.

Ask any retiree with a pension if they would trade their pension for a 401k.  It’ll never happen!

Fun fact:  people retiring with pensions live longer than those retiring without a pension.

The reason why is simple.  Financial stress and anxiety is eliminated when you know you have more money arriving next month no matter how long you live.

Have you ever noticed the mainstream narrative is to build the biggest asset possible instead of the largest income?  Who benefits from that?  The answer shouldn’t surprise you.

You’ve been told for the longest time to max out your 401k, take the employer match, and you’ll be able to retire with a lot of money.  It’s good advice but only until you realize you still have to figure out how to create the largest income possible which no one ever teaches you how.

Let’s face it, you can’t take your brokerage statements to the grocery store.  Those numbers don’t buy the groceries!  You have to turn it into income first!

So the question that you should be asking yourself is:  How can I generate the largest and most predictable income for ALL years of my life?

Imagine retiring with more income each month and never having to worry about running out of money or that you’ll leave your kids with little to pass on. 

If you’re looking for simplicity, efficiency, levels of guarantees, and leaving a legacy is important to you, we invite you to schedule a strategy session to learn how you can create what we call a “Pension 2.0”.  

We’ll show you how to maximize your retirement nest egg to generate income on average 50% greater than your current retirement plan while still staying invested in the market.

Use the link here to schedule your strategy session:

Thank you,

John Montoya

Monday, February 8, 2021

Bitcoin Newbies: The Best Way To Start Owning Bitcoin

If you are new to Bitcoin this is a quick start guide so you can get started OWNING Bitcoin. Make it your goal to own 1 Bitcoin. With only 21 million Bitcoins that will ever be created this is an asset class that you need to dip your toes into so you're not looking back in 5-10 years wishing you had. 

Follow me on Twitter for content to help you better understand what Bitcoin is all about but just like you don't need to understand how the internet works to shop on Amazon or do your online banking, you can start to own Bitcoin safely and in the case of my first recommendation, Lolli, you can begin to own Bitcoin without buying it directly on any exchange. 

Bitcoin is the internet of money. It's time to start building a position if you haven't already!

(FULL DISCLOSURE: the links below are referral codes.  You and I may both receive Bitcoin when you use the referral code to register.)

Earn Bitcoin When You Shop


Earn Bitcoin when shop at over 1,000+ partner stores like Ebay, Nike, Adidas, and Priceline.  See the pic below how I earned $20.52 in Bitcoin when I used Lolli to rent a car for my next vacation via Priceline.

Use my Referral Code and we'll be earn free Bitcoin:

Where to Buy and Hold Bitcoin


Buy, store, and earn interest on your Bitcoin (and other crypto) while you hold it. Easiest to use exchange that combines earning interest.  Only available on your mobile phone.

I'm inviting you to start investing in crypto with Voyager. Download the app and trade $100 to get $25 of free Bitcoin.

Use code 7JPYZM or this link to claim your BTC:


Store your Bitcoin and earn interest like a bank. You also have the ability to leverage your holdings via loans like you can with Infinite Banking Whole Life policies.

Join Celsius Network using my referral code 1698339749 when signing up and earn $30 in BTC with your first transfer of $200 or more! #UnbankYourself

To use Celsius you'll first need to own Bitcoin.  Use Voyager to buy Bitcoin and you can then send your Bitcoin from your Voyager wallet address to your Bitcoin wallet address (think of this as your account number) on Celsius.

Think of this as a 1-2 punch.  Buy on Voyager, store on Celsius.  Buy on Voyager, store on Celsius.  No need to get complicated as you do your own research and gain confidence.

Also, while you can earn interest on your Bitcoin on Celsius, Celsius will allow you to bank your Bitcoin holdings (take loans against it).  If you are an Infinite Banking client, you will understanad the importance of being your own bank. 

(Update March 17, 2021:  the interest rate offered by Celsius and Voyager on your crypto holdings fluctuate.  Currently, Voyager is paying 6.25% on Bitcoin and Celsius is at 4.06%.  Voyager currently has the higher yield so it would make sense to keep a majority of your Bitcoin on Voyager for the time being.  Remember this rule, never have all your eggs in one basket.  As you build a portfolio, allocate it across different accounts.)

Recommendations On How Much To Buy

Only invest what you can afford to lose.  Bitcoin shouldn't be more than 10% of your portfolio.  As you build a base, it is likely Bitcoin could become more than 10% of your net worth but only invest what you are willing to lose 100% of and you will sleep at knowing you aren't risking your life savings.  Let investing in crypto happen over time by dollar cost averaging.  As a Bitcoin Newbie, $10-$200 as your monthly budget can afford it will allow you to start building a position that you can confidently grow into as you learn more about Bitcoin.

Do you have time to unwind before going to sleep? Go down the Bitcoin rabbit hole with me on Twitter.  I link a lot great articles and videos about crypto... also Infinite Banking, Austrian economics, and free market principles but crypto dominates my Twitter feed.  It's a great resource because I'm already curating everything for you.  

Friday, January 29, 2021

Which Online Financial App Do You Recommend?

There seems to be a growing number of online apps in the marketplace that are being developed to help people get financially organized and see their assets in one place synced in real time.  Very helpful for debt management but based on what I've investigated for wealth building, there's a million dollar idea out there for software developers...  

This is because the mainstream retirement planning model is based on a flawed premise that goes like this:

Accumulate the largest balance sheet possible via market based investments and then in retirement sell off those assets to generate income.

For example, to reach your retirement goal you will need $1m in investable market based assets.  This forces you to play in the Wall Street casino as if no other retirement model exists.

We've all seen the commercials with people walking on top of a green arrow with a growing dollar amount.  These commercials focus your attention on trying to get to an imaginary retirement number.  We're literally being conditioned to think a certain way over and over again to the point this has now become "GroupThink".  If everyone else is doing it, I should be doing it, too.

This retirement model is flawed because it’s not the amount of assets that is important.  I repeat, 

It’s not the amount of assets that is most important

Certainly, you need to have a solid balance sheet heading into retirement but the most important number you need to know is the amount of income you'll have for all years in retirement.   

But none of these online financial software models available to the public can provide a guaranteed income number.  Instead these platforms leave you on your own or relying on your traditional Wall Street based advisor to figure out just how you're going create a retirement income.  At best, you're given a guess.


Let's quickly examine the idea and importance of a pension.  Pensions provide a guaranteed payout for as long as you live.  This is ultimately what people want even if they aren't willing to admit it.

Consider this scenario:  If you had two job offers from two identical companies (same role, income, etc) and the only difference between the two job offers was company A offered a 401k and company B offered a pension, which offer would you take?


Obviously, you'd want the security of a guaranteed income to enjoy your retirement with.  A 401k has no such income guarantees.  You have to figure it out on your own.


In order to get retirement guarantees you want you have to move money into life insurance policies or annuities.  This is becuase only life insurance companies are able to provide guaranteed withdrawals rates and lifetime income payouts greater than the “safe 4% withdrawal rate” Wall Street recommends on their all market-based approach to retirement planning.  

That "safe" golden rule for withdrawals is now 3.3% according to Vanguard.  Academic pundits like Wade Pfau, PhD. From The American College of Retirement now say the recommended withdrawal rate is actually 2.8% due to market volatility and historically low bond rates.  


Essentially, that means instead of $40,000 of annual income on $1,000,000 in assets now only produces between $28k-33K a year, and you STILL have the risk of running out of money at some point if you live too long!

In nealy all cases I'm able to create as much as 50% more income on a guaranteed basis by utilizing life insurance and annuity strategies compared to the default withdrawal plan Wall Street recommends.

Does this mean all money should move to life insurance companies?  Certainly not.  

But the reality is this.  There's needs to be a marriage between Wall Street and the Life Insurance industry if you want to have any degree of certainty in retirement.  


Here's your big takeaway:  

How much guaranteed income do I need and how can I get it with as much efficiency as possible?  

Knowing your income number will determine what steps need to be taken in building out a well thought out retirement plan.  Without knowing that number, chasing an imaginary number is illusive and perhaps that’s the point with all these financial platforms.  Wall Street wants people on that perpetual hamster wheel so the less you know about creating a pension like income for yourself, the better it is for them.

Do you need helping know your number?  If so, let's talk.  You can schedule time here:


Thank you,


John Montoya