tag:blogger.com,1999:blog-71583467985733633802024-02-06T20:07:02.096-08:00JLM Wealth StrategiesIBC (Infinite Banking Concept) and Bank On Yourself authorized advisor educating people about safe money strategies.JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.comBlogger223125tag:blogger.com,1999:blog-7158346798573363380.post-31221745624190105242023-02-25T10:25:00.004-08:002023-02-25T10:56:29.817-08:00How Much, In Dollars, Do You Love Yourself (and Your Family)?<p>On Valentine’s Day we typically express our love for our significant other with a gift. The idea of gifting the person you love with a life insurance policy is a bit morbid though. Nonetheless, it does certainly say something about how much you value your relationship more than any other gift you can give. One of the great advantages of life insurance is that it allows you to create an estate of substantial size before you’ve actually saved to create it.</p><p>But what if you’re single? What if there is no need for you to replace your income or have your mortgage paid in the event of an untimely death? Is there no need for life insurance?</p><p>I’ll argue you despite not having a person depending on you to carry on with the life you’ve built together, there is still need for life insurance and specifically a Whole Life policy which I’ll simply refer to as a Cash Value policy. In fact, I’ll give you two reasons.</p><p><br /></p><h2 style="text-align: center;"><b>#1: Tax-Free Source of Funds During Your Working Years</b></h2><p>There’s only two realistic places to park cash where it is allowed to grow tax-free: Roth IRA and Cash Value policy. </p><p><br /></p><p>Roth IRA’s are great for retirement but there are too many restrictions to limit its utility during your pre-retirement years. Limits to annual contributions and if your income is too high, then you can’t contribute at all. There’s also the issue of access to your account balance being restricted to only your contributions, and if you would like to restore the withdrawal, you have only 60 days to do so. </p><p><br /></p><p>Cash Value policies do not limit you with regards to annual contributions (called premium) or limit access to available cash values for any reason. Higher income earners are not excluded. However, not everyone can have a Cash Value Life Insurance policy. The reason being you must qualify for life insurance. If you are in poor or marginal health, it’s possible to get declined. </p><p><br /></p><p>Ideally, you have both types of vehicles at your disposal. If you’re thinking a Roth IRA is more important, here are some things to consider. </p><p><br /></p><p>Don’t discount your need to have a safe place to have available source of money always growing regardless of market conditions. People keep a traditional checking account to pay bills but also to maintain an emergency savings account. A traditional bank is crucial and a necessity for bill paying but not for emergencies when a Cash Value policy provides so much more value:</p><p>- better long-term growth</p><p>- no 1099’s to report interest</p><p>- ability to take policy loans against cash value balance without interrupting growth</p><p>- ability to repay the loans with any amount and with any frequency of your choosing</p><p>- additional death benefit </p><p>- moral reasons: fractional reserve banking contributes to inflation whereas full reserve life insurance companies do not. Society decays when money decays. There is something to be said about not contributing to the problem by leaving only the minimum on deposit at traditional banks to pay monthly bills (plus 2-3 months cushion). </p><p><br /></p><p>90 days is plenty of time move money from a cash value policy to a bank account when funds can be delivered via Electronic Fund Transfer (EFT) from life insurance companies in 3-5 days.</p><p><br /></p><p>Your ability to be safe and liquid without an over reliance on a traditional bank during (and after) your working years is as much of a necessity as saving for retirement with a Roth IRA. After all, you have need to finance your lifestyle for ALL YEARS of your life. If you fail to capitalize properly in the best place, traditional banks are all too happy to extend you money via credit cards at 18-25+%. This is a debt trap best avoided.</p><p><br /></p><p>Remember Mark Twain said: <span face="Roboto, "Helvetica Neue", Arial, sans-serif" style="-webkit-tap-highlight-color: rgba(255, 255, 255, 0); background-color: #202124; caret-color: rgb(189, 193, 198); color: #bdc1c6; font-size: 18px;">“</span><b style="-webkit-tap-highlight-color: rgba(255, 255, 255, 0); caret-color: rgb(189, 193, 198); color: #bdc1c6; font-family: Roboto, "Helvetica Neue", Arial, sans-serif; font-size: 18px;">A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.</b><span face="Roboto, "Helvetica Neue", Arial, sans-serif" style="-webkit-tap-highlight-color: rgba(255, 255, 255, 0); background-color: #202124; caret-color: rgb(189, 193, 198); color: #bdc1c6; font-size: 18px;">”</span></p><p><br /></p><p>Cash Value policies allow you to be your own banker instead! Learn more by listening to the podcast I co-host:<a href="http://Www.thefifthedition.com" target="_blank"> The Fifth Edition</a>.</p><p><br /></p><h2 style="text-align: center;"><b>#2: Tax-Free Source of Funds During Your Non-Working Years</b></h2><p> </p><p>I’ll wager you’ve never considered Cash Value Life Insurance for retirement purposes. It’s not part of conventional thinking when we’re conditioned to save for retirement via government controlled (qualified) vehicles like 401k/403b/457 and IRA accounts. And consider that these qualified retirement accounts offer only one option for income: withdrawals without any hedge for outliving your account balance (<b>no lifetime guarantee options</b>).</p><p><br /></p><p>Nonetheless, there are numerous additional benefits and advantages to having a Cash Value policy in your overall financial portfolio:</p><p>- non-correlated asset</p><p>- guaranteed cash value increases each year</p><p>- ability to customize withdrawals or take policy loans for tax-free income</p><p>- ability to annuitize cash value for guaranteed lifetime income</p><p>- availability to have access to the death benefit as an additional source of funds due to terminal or chronic illness</p><p>- ability to combine with other assets like 401k/IRA’s to create additional retirement income strategies that produce more income than 401k/IRA’s will provide on their own: </p><p></p><ol style="text-align: left;"><li>Covered Asset Strategy</li><li>Volatility Buffer Strategy</li></ol><p></p><p><br /></p><h2 style="text-align: center;"><b>Summary</b></h2><div><b><br /></b></div><div>Single people: Look past the death benefit as a reason to own permanent life insurance. Cash Value Life Insurance is an incredible gift you can give yourself that carry benefits and advantages which are too important to overlook. I give you 2 reasons own a cash value policy: tax-free use and control of your money during working and non-working years, in one place no less.</div><div><br /></div><div><br /></div><div>The best time to start is always yesterday. Remember, your health is never guaranteed and this is the one financial account that must be medically qualified for. </div><div><br /></div><div>Though Valentine’s Day comes around once a year, this is a gift you can give yourself any day of the year. My advice is to get started sooner rather than later. Your future self will appreciate you had the foresight to think both long-term and unconventionally.</div><div><br /></div><div><br /></div><div>Here’s the best way to connect with me: <a href="http://www.IBC.guru">www.IBC.guru</a></div><div><br /></div><div><br /></div><p>Thank you,</p><p><br /></p><p>John Montoya</p>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-6017560477313173382023-02-01T11:22:00.000-08:002023-02-01T11:22:04.463-08:00There is No Secret Ingredient<p>One of my favorite movies is Kung Fu Panda and the lesson about the secret ingredient applies to Whole Life.</p><p><br /></p><p>When people learn about Infinite Banking, they feel like they discovered something that wonderfully new and magical. The truth is though there is nothing magical about Infinite Banking or Whole Life policies other than the perceived newness of it.</p><p><br /></p><p>There’s a mystical feeling about making a discovery, traveling some place new, and the a-ha moment with Infinite Banking and Whole Life is like that, too. But there is no magic about it, no sleight of hand. This is a good thing because if there was something magical or some sort of con involved to distract your attention, Whole Life insurance would be, well, Universal Life insurance.</p><p><br /></p><p>Same thing with Infinite Banking. It’s perhaps a novel idea at first until you realize banking has been around for thousands of years. People who have saved will lend to those who need capital and the cost to the borrower is interest. </p><p><br /></p><p>If you’ve ever loaned a friend or family member money, you’ve banked at the individual level. It’s that simple. At a larger level, that’s the role traditional banks have filled for people who haven’t saved enough capital for what they want or need. But the banking function of lending is not exclusive to banks. We are just conditioned to think it is.</p><p><br /></p><p>Enter Infinite Banking at the individual level. The “you and me” level as Nelson Nash used to say. He would also tell people the banking function doesn’t have to be done with Whole Life. It can be accomplished with a Bank Line of Credit (Home, business, or personal). It can be done with a checking/savings account. However, his conclusion was Whole Life was the best financial vehicle to harness the banking function. Infinite Banking was born and his book Becoming Your Own Banker was written to help people understand a different way of solving for our greatest financial need: financing.</p><p><br /></p><p>To be clear, Infinite Banking and Whole Life are two separate things. The former is a strategy, the latter is a financial product. IBC requires a financial product. Whole Life doesn’t require Infinite Banking. </p><p><br /></p><p>What Whole Life accomplishes through its guarantees and predictability is make it the best choice to practice the banking function in your own life. Rather than relying on traditional banks for all the major capital you’ll require in your life, you can instead Become Your Own Banker. </p><p><br /></p><p>And Whole Life works so well because there is no magic to it. Or as say, “no luck, skill, or guesswork.”</p><p>Premiums paid result in guaranteed cash value. Only in a Whole Life policy does the cash value represent the equity you own in the death benefit. Consider a 30 year fixed mortgage as an analogy: level payments for all years where each mortgage payment results in an increasing equity position for the home owner. Same thing for Whole Life where each premium results in a growing equity position of the death benefit until the cash value ultimately must equal the death benefit. This never happens with Universal Life policies.</p><p><br /></p><p>I’ll explain Universal Life this way: you lease the death benefit, you never own it. </p><p><br /></p><p>The reason why is because the cost of insurance in Universal policies in designed to increase every year and any additional amount paid above the cost of insurance is unbundled into an interest bearing account which is the cash value in a Universal policy. Since the cash value floats based on whatever interest crediting option available in the product in Universal policies, performance requires “luck, skill, and guesswork”. The cash values must also stay above the increasing cost of insurance or the policy will begin to eat itself. There is nothing certain about Universal policies unlike a Whole Life policy. </p><p><br /></p><p>To sum up, there’s nothing magical about Infinite Banking and Whole Life. No secret ingredient. Whole Life is based on guaranteed numbers (math). As a result, its performance is guaranteed by the life insurance companies that offer it. Infinite Banking is the idea and strategy eliminating the middle man banking institutions. </p><p><br /></p><p><br /></p>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-58788067677301112282023-01-09T12:33:00.009-08:002023-01-09T22:03:39.553-08:00The Biggest Lie About Whole Life Insurance<p> </p><p><i>Text from a potential client: I was reading that for many whole life policies you don’t get the cash value upon death, is that true?</i></p><p><i><br /></i></p><p>Thankfully, this is 100% NOT TRUE! But it is true that this lie is perpetuated around the internet as gospel and people hear or read this so often that they believe it to be true. </p><p><br /></p><p>So here’s quick explanation to put this lie to rest and this will help you understand how a Whole Life policy works.</p><p><br /></p><p>Lets first understand a Whole Life policy operates on a contractual guaranteed basis to accomplish what you want to have happen. I’ll come back to this.</p><p><br /></p><p>Second, let’s have a thought exercise to help in learning.</p><p><br /></p><p>Imagine if you will that you have a retirement goal to accumulate $1,000,000. How would you do it?</p><p><br /></p><h2 style="text-align: center;">Option #1: Invest</h2><p>At one end of the spectrum, the riskiest way is to invest because investments entail risk of loss. While we all no doubt would like to accumulate $1,000,000 using the fewest dollars possible, investing offers no straight line to the end goal. Look at any valuation chart of your favorite index. Returns will zig zag and ride the market roller coaster. There are no guarantees of arriving at $1,000,000. Past performance be damned (if we’re being honest).</p><h2 style="text-align: center;">Option #2: Save</h2><p>At the other end of the spectrum is the least volatile way to create a straight line to $1,000,000 and that is to simply save. To keep things simple, assume no yield on savings and no inflation. Just save and you will get there but it will require the full $1,000,000 saved on your part in order to equal the $1,000,000 target end goal. While this is the least efficient way to accumulate $1m, it is also the only “guaranteed” method.</p><p><br /></p><p>How long it takes to reach $1 million is up to your capacity ($100 a month, $1000 a month, $10,000 a month, etc.) and your discipline level as the saver but with enough time, money, and discipline the $1,000,000 savings goal will be achieved.</p><p><br /></p><p>There's one problem with both options though. One unknown variable with both the investing and savings option is mortality which is why I wrote “guaranteed” a couple paragraphs above. You might die prematurely before you ever reach $1,000,000. There’s no guarantee you’ll live long enough to save (or invest) enough to equal $1,000,000.</p><p><br /></p><p>This is where Whole Life insurance comes in. In order to make certain what you want to have happen, will happen, you require insurance on your life as a hedge. Only a Whole Life can guarantee you reach your investing/savings goal, even if you’re not alive to realize it. <i>(The main problem with Term and Universal is that you likely will outlive both because of the fatal design flaw built into those policies... increasing future premiums.)</i></p><p><br /></p><p>Whole Life accomplishes an inevitable outcome at the most basic level. Think of it as a guaranteed savings vehicle with a death benefit attached. As you pay premiums (save money), you get closer to your end goal. If you pass away before reaching the end goal, the insurance company is on the hook for the difference between the cash value and the death benefit, called Net Amount At Risk. This is the insurance part of the policy.</p><p><br /></p><p>Only with a Whole Life policy are you contractually guaranteed the premiums will equal the death benefit at your time of death, or if you live long enough, at the end of the contract (up to age 121). In layman's terms, if you save the money, you'll reach your goal no matter what. </p><p><br /></p><p>Each year as you age you get closer to the cash value equaling the death benefit. This is called Endowment. Only a Whole Life policy is guaranteed to endow (cash value equaling the death benefit). </p><p><br /></p><p>Here’s the major takeaway:</p><p><br /></p><p>What people don’t realize about how Whole Life policies work is that <b>the</b> <b>cash value is the present value of the future death benefit. </b>Read that again please. Let it sink in.</p><p><br /></p><p>For proof, look at the death benefit in the final year of any Whole Life illustration. At the bottom on the left side is the Guaranteed Ledger. Each year the Total Cash Value is increasing and getting closer to the guaranteed Total Death Benefit. Scroll down to age 121. You'll find the Cash Value now equals the Death Benefit. This is contractually guaranteed with Whole Life and every Whole Life policy operates the same way or it's not a Whole Life policy. I've lost count of how many people have a Universal policy thinking it's Whole life... (<i>The Non-Guaranteed Ledger below on the right includes Dividends. Dividends are icing on the cake, if you will.</i>)</p><p><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5c1dZihMqZBiUvxmT-VO7qEa3_IDTeBN5e8UYggwHBaEISoNEKlNWQifJTpeeikB-O6IOyckzhE0Tk5KPk2jbUBuGJXYmDN0cy6TbxdHqB5oq7nJ-e3QazVZykJjK1C-PIMrJRoyTBrhCo36b5jRZmz0EPudTDe0gwY_pmbyoM4XG3j4ax9MLtnS0LQ/s2010/Screen%20Shot%202023-01-09%20at%209.10.33%20PM.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1484" data-original-width="2010" height="472" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj5c1dZihMqZBiUvxmT-VO7qEa3_IDTeBN5e8UYggwHBaEISoNEKlNWQifJTpeeikB-O6IOyckzhE0Tk5KPk2jbUBuGJXYmDN0cy6TbxdHqB5oq7nJ-e3QazVZykJjK1C-PIMrJRoyTBrhCo36b5jRZmz0EPudTDe0gwY_pmbyoM4XG3j4ax9MLtnS0LQ/w640-h472/Screen%20Shot%202023-01-09%20at%209.10.33%20PM.png" width="640" /></a></div><br /><p><br /></p><p><br /></p><p>When you understand that the Whole Life premiums you are paying are creating cash value and that the increasing cash values represents the present value of the death benefit, you’ll realize the insurance company <b>can’t keep the cash value</b> because<b> the cash value is 100% entwined and part of the death benefit</b> payout. Actuarial science and contract law makes this a mathematical certainty that the premium paid into the policy will accumulate internally to equal the death benefit.</p><p><br /></p><p>What you’ve accomplished with your deliciously boring Whole Life policy is to guarantee that you will save your way to $1,000,000 via premiums (some call it “forced savings”) and if you aren’t alive to reach the goal, your beneficiary will be recipient of the $1,000,000 tax-free death benefit. It’s boring because you know with certainty this will happen. No luck, skill, or guess work required. And I'll add a Whole Life policy has been an extremely peaceful and stress-free way to organize my life.</p><p><br /></p><p>In a nutshell, it’s a guaranteed savings vehicle with a death benefit attached.</p><p><br /></p><p>Now repeat after me: </p><p><br /></p><p>The life insurance company can’t keep your cash value because the cash value is part of the death benefit.</p><p>The life insurance company can’t keep your cash value because the cash value is part of the death benefit.</p><p>The life insurance company can’t keep your cash value because the cash value is part of the death benefit.</p><p>The life insurance company can’t keep your cash value because the cash value is part of the death benefit.</p><p>The life insurance company can’t keep your cash value because the cash value is part of the death benefit.</p><p>The life insurance company can’t keep your cash value because the cash value is part of the death benefit.</p><p>The life insurance company can’t keep your cash value because the cash value is part of the death benefit.</p><p>The life insurance company can’t keep your cash value because the cash value is part of the death benefit.</p><p>The life insurance company can’t keep your cash value because the cash value is part of the death benefit.</p><p><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguaKUi4GzL3xUQbg1vy9-Hu3jl1QGDh74uPHF2lfPnu6hRTEuormeoch0tLbzn6xk67AAt6C-GZV_kovgfj8Oic_2-vEwIoL2V5rjtoVVekQ8kECTI86jSTFyzO0-67wyzfGR8sTRaNjePKNvsszSSvvem4Qnx7Pbw2FmRw6SM7janUvU98rifWZaM7Q/s856/8ECFE0CA-3296-4C90-B31F-E58025A29642.jpeg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="466" data-original-width="856" height="254" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguaKUi4GzL3xUQbg1vy9-Hu3jl1QGDh74uPHF2lfPnu6hRTEuormeoch0tLbzn6xk67AAt6C-GZV_kovgfj8Oic_2-vEwIoL2V5rjtoVVekQ8kECTI86jSTFyzO0-67wyzfGR8sTRaNjePKNvsszSSvvem4Qnx7Pbw2FmRw6SM7janUvU98rifWZaM7Q/w468-h254/8ECFE0CA-3296-4C90-B31F-E58025A29642.jpeg" width="468" /></a></div><br /><p><br /></p><p>Cheers,</p><p><br /></p><p>John Montoya</p><p><br /></p><div class="separator" style="clear: both; text-align: center;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjrmzCxu_IwzSR4dn8ks3Pisv0IeTMyHs4PYBYde4XY3-1Vx_RCJwNkk97I-uN93ya3LPQJW3Ez7i_edXMkM1qzmSgBrGX9zFpH89PfBOkGp-m3KpFpNcq-FyyI4uLIEpDwetmxu1CGSYbVfTrcFNlWFE_PdIKVbeissGf8uYPVnxl444-7D36Un2KU1Q/s1000/IBC%20Horiz-Med.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="226" data-original-width="1000" height="72" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjrmzCxu_IwzSR4dn8ks3Pisv0IeTMyHs4PYBYde4XY3-1Vx_RCJwNkk97I-uN93ya3LPQJW3Ez7i_edXMkM1qzmSgBrGX9zFpH89PfBOkGp-m3KpFpNcq-FyyI4uLIEpDwetmxu1CGSYbVfTrcFNlWFE_PdIKVbeissGf8uYPVnxl444-7D36Un2KU1Q/s320/IBC%20Horiz-Med.png" width="320" /></a></div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7WvCgYQpGJ55rpc0-lMto9tqvomltoWvJCexHTfzcgg8utIFcOMjcCRwOvJl6nl3xjzA9A_DkK7CIj-NWLf4X7ZreHLxW2wUXssEog7P_-5sBBq71Qv3dPhFQaoCdoHryiFgT045UKEOYL-LhUjGwZItPXSWg9-VPYBgk90WQZRsLEMBOnmpa65T4QQ/s2048/The%20Secret%20To%20Lifetime%20Financial%20Security%20cover.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7WvCgYQpGJ55rpc0-lMto9tqvomltoWvJCexHTfzcgg8utIFcOMjcCRwOvJl6nl3xjzA9A_DkK7CIj-NWLf4X7ZreHLxW2wUXssEog7P_-5sBBq71Qv3dPhFQaoCdoHryiFgT045UKEOYL-LhUjGwZItPXSWg9-VPYBgk90WQZRsLEMBOnmpa65T4QQ/s320/The%20Secret%20To%20Lifetime%20Financial%20Security%20cover.jpg" width="213" /></a></div><br />JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-51236009023117815542023-01-03T17:04:00.001-08:002023-01-03T17:04:21.916-08:00Term, Universal and Whole Life Insurance: Price is What You Pay, Value is What You Get<p><span style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt;">Here’s a simple explanation of life insurance in order of product history with some anecdotes sprinkled in from my life experience.</span></p><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;">1. Term is the oldest. No cash value. Death benefit has a level cost (premium) for a “term” period. After the term period (common example: 10, 20, or 30 years), the premium increases annually at an ever-increasing cost. Hypothetically, one could pay the rising annual premiums to age 95 or 100 (per the contract) but effectively no one ever does because premiums become too outrageous. Benefit is the temporary cheap death benefit.<o:p></o:p></span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;">2. Whole Life was introduced after Term around 150 years ago because customers wanted a permanent death benefit. Whole life covers the “whole” or entirety of one’s life up to age 121, if you live that long. There is cash value. Premiums are guaranteed level for the life of the contract. Overage of premium is returned to the policy holder as a dividend. Cash values guaranteed to increase because cash values must eventually equal the death benefit on the last day of the contract in year 121. This is called endowment. Only a Whole Life policy can guarantee endowment. Benefits (short list): level premiums for life, guaranteed cash values which can be accessed while living for any reason, guaranteed death benefit for life.<o:p></o:p></span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;">3. Universal was introduced about 40 years ago. It separates the cost of insurance from the interest component so that the cost of insurance adjusts once a year for the life of the contract. This is known as Annual Renewable Term. Universal policies has the illusion of being cheaper than Whole Life because the cost of insurance at time of policy issue is very inexpensive. But as the insured ages, the cost of insurance increases annually to better price the mortality risk (closer to dying). What was once very cheap becomes extremely expensive by late 60’s getting exponentially more expensive into 70s, 80’s and beyond if there is still enough cash value to support the rising costs internally without the policy owner having to come out of pocket to offset the cost of rising premium. Benefit: cheap at first, “permanent” death benefit.<o:p></o:p></span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;">Universal is “Permanent” much like how a term policy could be considered permanent. Technically, if a person were willing to pay the increasing cost of premium every year to age 95 (or the end of the contract), both a term and universal policy would be permanent, indeed. <o:p></o:p></span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;">The reality is altogether different. Because only a Whole Life policy locks in a guaranteed level premium, it is the only life insurance contract that is in effect permanent.<o:p></o:p></span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;">Hucksters (Dave Ramsey) and life insurance salesman with limited training will recommend Universal making the common mistake of thinking it is cheaper than the Whole Life but the reality is, like term insurance, being cheap is temporary. Eventually, the price of the insurance policy will catch up to its true cost.<o:p></o:p></span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;">Having worked at Nordstrom in my college years selling expensive but high quality men’s dress shoes I learned a valuable lesson: Price is what you pay, value is what you get.<o:p></o:p></span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;">I learned it was easy to buy the $80 dress shoes that would hold up for maybe 6 months but it was smarter to spend $220 on shoes that would last 4-5 years or longer. <o:p></o:p></span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;">I approach life insurance the same way. Term insurance certainly has a place. For my money, I want a guaranteed convertible term policy so I always have the option to covert to a Whole Life policy. But when purchasing permanent life insurance, I want the best value I can get. That only applies with Whole Life because I know the guarantees with Whole Life make sure the premiums are locked in. I’m transferring the risk of ever being unable to afford the policy as I age and I have cash values that won’t be cannabalized by rising mortality costs like with Universal policies.<o:p></o:p></span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;">I think of Whole Life as similar to a 30 year fixed mortgage. When I’m shopping for a home, I’m going to choose the financing option that will provide a level payment until the home is paid for. It’s common sense if you’re going to live in the home for a longer time. Sort of like shopping for a life insurance plan and planning to be alive for as long as possible… I’d never choose a 1 year adjustable mortgage when buying my home. In mortgage terms, that’s essentially a Universal Life policy.<o:p></o:p></span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;">We all know what happened in the Great Financial Crisis from 2007-09. The movie The Big Short chronicles it extremely well. A few individuals saw the writing on the wall with all gimmicky artificially low interest rates that were set to adjust much higher after the initial term expired and they bet against the housing market making millions, even billions, in the process.<o:p></o:p></span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;">Why do you think life insurance companies love to sell term and Universal policies? They know they are going to be let off the hook of paying a death benefit because people will either outlive the term policy and won’t be able to keep up with the rising cost of insurance. Like a home going into foreclosure where the bank repossesses all equity and the house, the life insurance company will keep all the premium (term) paid or in the case of Universal, surrender what’s left of the cash value. The death benefit is temporary is both cases.<o:p></o:p></span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;">Takeaway: a death benefit can only be guaranteed if the policy owner can afford to pay the premiums or there is enough cash value and/or built up death benefit to pay up the remaining policy premiums to achieve endowment. Only Whole Life makes this possible because the premium is calculated and guaranteed by the underwriters to cover a level cost of insurance for the life of the policy. <o:p></o:p></span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;">Price is what you pay. Value is what you get.<o:p></o:p></span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;">Additional note:<o:p></o:p></span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;">Since Universal policies subject the interest credited to either money market like rates (Universal), or mutual fund like securities (Variable Universal), or even ETF like funds with caps and participation rates (Indexed Universal), there does exist for the possibility for the excess premium (cash values) above the rising cost of insurance premium to accumulate and stay ahead of future mortality expenses. However, as noted, because the rising cost of insurance is never locked in beyond a year at a time with Universal policies, the risk of the policy performing as one hopes for when making the purchase always resides with the policy owner, never the life insurance company. The insurance company bears no risk for non-performance because the interest component is unbundled from the cost of insurance. The risk of the universal life policy performing, because cash values aren’t guaranteed to increase to eventually equal the death benefit like with Whole Life, is left to uncertainty.<o:p></o:p></span></p><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> Thank you,</span></p><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"><br /></span></p><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><br /></p><p class="MsoNormal" style="font-family: Calibri, sans-serif; margin: 0in;"><span style="font-size: 14.6667px;">John Montoya</span></p><p class="MsoNormal" style="font-family: Calibri, sans-serif; margin: 0in;"><span style="font-size: 14.6667px;"><br /><a href="http://www.ibc.guru" target="_blank">Connect With Me Here</a></span></p><p class="MsoNormal" style="font-family: Calibri, sans-serif; margin: 0in;"><span style="font-size: 14.6667px;"><br /></span></p><p class="MsoNormal" style="font-family: Calibri, sans-serif; margin: 0in;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZyWDAX-dfndKqf5OGSOtCntnuCD7TpQMIQiU9g5n5e7uPV4_pU03-ijb095sEZwM7t-tGxgtEggti5yiah8Gv4RFXc2rgGyshCWMnzu2yEWSByporaxY0CF4xzvu3eKKFOeOI0b05tdOpoSjvVzmJxV0AnxMw0gTEm1VPntoZJndd2KRhP8jsXFn3Bg/s1000/IBC%20Horiz-Med.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="226" data-original-width="1000" height="72" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiZyWDAX-dfndKqf5OGSOtCntnuCD7TpQMIQiU9g5n5e7uPV4_pU03-ijb095sEZwM7t-tGxgtEggti5yiah8Gv4RFXc2rgGyshCWMnzu2yEWSByporaxY0CF4xzvu3eKKFOeOI0b05tdOpoSjvVzmJxV0AnxMw0gTEm1VPntoZJndd2KRhP8jsXFn3Bg/s320/IBC%20Horiz-Med.png" width="320" /></a></div><br /><span style="font-size: 14.6667px;"><br /></span><p></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-size: 11pt;"> </span></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsTMh5s45Tb7n9Q0y67CUUDfcL66wHFC-LLs0lmA8A8pffIDI4b1Za83QrsO9AGpnVj-0e76mwYZDvhQVS7o9uT8fdAd96m0bm8Q33Fda--0Uc1YRAh9j4y97QcvKWwjE11ZN5SOr4w4iSXWI_bFkz_cqwSwIJy34nuaKsfBe4aRhnDMRUky79S7xfeg/s2048/The%20Secret%20To%20Lifetime%20Financial%20Security%20cover.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhsTMh5s45Tb7n9Q0y67CUUDfcL66wHFC-LLs0lmA8A8pffIDI4b1Za83QrsO9AGpnVj-0e76mwYZDvhQVS7o9uT8fdAd96m0bm8Q33Fda--0Uc1YRAh9j4y97QcvKWwjE11ZN5SOr4w4iSXWI_bFkz_cqwSwIJy34nuaKsfBe4aRhnDMRUky79S7xfeg/s320/The%20Secret%20To%20Lifetime%20Financial%20Security%20cover.jpg" width="213" /></a></div><br /><p></p></div>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-47300726165652846562022-11-22T17:40:00.002-08:002022-11-22T17:40:34.139-08:00Trust But Verify<p>Trust but verify. This ethos is heard often in the Bitcoin world but the same adage could easily be assigned to Whole Life.</p><p><br /></p><p>So many people dismiss Whole Life at first mention because of what they think they know. Most people’s understanding of Whole Life, in my experience, is based on someone’s misunderstanding. </p><p><br /></p><p>But there’s a very easy way to determine if Whole Life is what portends to be from those who claim to really know it and those who dismiss it so easily. Verify.</p><p><br /></p><p>How? </p><p><br /></p><p>Easy. Talk to an experienced and qualified expert in Whole Life. Connect with someone like myself who has 20+ years in the life insurance industry, co-hosts a podcast, licensed in 45+ states, and happens to walk their own talk. </p><p><br /></p><p>I can answer all the elusive questions. I can also go a step further to show you how a Whole Life policy can be structured to guarantee a future outcome: </p><p>Retirement income</p><p>Rainy day fund</p><p>Capital for investing in real estate and business ventures</p><p>College funding for the kids</p><p>Excess pool of money to cover a long-term care health event</p><p>Tax-free transfer of wealth</p><p><br /></p><p>And all within a budget you can work with. All verifiable. No need to trust me or whoever might be in your ear leading you astray. See for yourself. As it’s said: The proof is in the pudding.</p><p><br /></p><p>You can reach me here:</p><p><br /></p><p>CALENDAR: <a href="http://Www.IBC.guru">Www.IBC.guru</a></p><p><br /></p><p>Thank you,</p><p><br /></p><p>John Montoya</p><p><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiBHSVbJO4X_oCmndqnrVq7KC5Kx-Emb8IHt3M8CiU-2nQ-fkS-7EkPvbDdGZl7rHYMCZsGKSs2yW7bIfEs9GaXXWGJM4pqZYnon6UUckBEqyqpMmLEoqHrmQiCbV9bm8gLNUJP4OyK2hR_fDdp1qOZE4yeCl5z1szh-QCnv9ZI1t3a-fu0ADjfuVAqkQ/s1024/SealVert_DIscnFlame-1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="726" data-original-width="1024" height="227" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiBHSVbJO4X_oCmndqnrVq7KC5Kx-Emb8IHt3M8CiU-2nQ-fkS-7EkPvbDdGZl7rHYMCZsGKSs2yW7bIfEs9GaXXWGJM4pqZYnon6UUckBEqyqpMmLEoqHrmQiCbV9bm8gLNUJP4OyK2hR_fDdp1qOZE4yeCl5z1szh-QCnv9ZI1t3a-fu0ADjfuVAqkQ/s320/SealVert_DIscnFlame-1.jpg" width="320" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhTjd6fYA3G52Tvgpf4ugcLQnekz3KIBeucuVC6Dt5ciABsZr5fbLlCxS8zvvslucQdWdA1NYFHrQh8iweqgtTsn8YE12bPeP7GVregfDg-isr337Hp_BduFa__eFjvK_EAaeEQ9MEMcCp48d-RiGe0zzPObO-rBdtE9F87xR8np75zpeOqk5SnjoXfMg/s2048/The%20Secret%20To%20Lifetime%20Financial%20Security%20cover.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhTjd6fYA3G52Tvgpf4ugcLQnekz3KIBeucuVC6Dt5ciABsZr5fbLlCxS8zvvslucQdWdA1NYFHrQh8iweqgtTsn8YE12bPeP7GVregfDg-isr337Hp_BduFa__eFjvK_EAaeEQ9MEMcCp48d-RiGe0zzPObO-rBdtE9F87xR8np75zpeOqk5SnjoXfMg/s320/The%20Secret%20To%20Lifetime%20Financial%20Security%20cover.jpg" width="213" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><p><br /></p>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-21099905660529068592022-11-04T11:48:00.008-07:002022-11-29T22:06:45.753-08:00The Two Ways To Thrive & Prosper in the Current Debt-Based Financial System<p><span style="font-family: verdana;">What will be the best way to thrive and prosper in a fiat (debt-based) monetary system?</span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">Answer: Through the use of honest, sound money systems to preserve, grow, and transfer wealth.</span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">Does this actually exist?</span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">Yes, in two places:</span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">Whole Life insurance policies and the Bitcoin protocol.</span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">Whole Life exists within the current legacy financial system and is engineered on a full reserve basis. This is extremely important. Life insurance companies by law cannot print or create money (credit or IOU’s). Unlike the banking system that can loan beyond what they hold in reserves, the life insurance industry is restricted from doing so. As a result, life insurance companies are financially solvent which is a requirement enforced by the legal system.</span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">This is important because what happens when the music (free money printer) stops? The world enters a liquidity crisis because the credit system must eventually unwind at the end of each “business cycle”. Banks stop lending, asset prices drop, companies start laying off, people are worse off… except for those people who value honest, sound money systems and warehouse a portion of their assets with mutual based life insurance companies via Whole Life policies. </span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">With a Whole Life policy, there is no liquidity crisis for the policy owner. Policy owners have access to their cash value at any time for any reason, either as withdrawal or using the cash value as collateral for a guaranteed loan. Life insurance companies must make the cash value available to the policyholder because policyholders have the first priority to the money within the life company. Compare to a bank where a depositor is a creditor to the bank and do not have first priority. </span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">There is a long history of bank runs and credit bubbles bursting. People unfortunately learn the hard way and/or lessons are quickly forgotten or never learned in the first place. The history of money is not taught in schools and the majority of adults won't ever read another book after graduating high school. Throw in what think they know about life insurance which isn't so, and well, Infinite Banking through Whole Life policies is beyond the comprehension of many. </span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">Be that as it may, Whole Life policies bridge the present monetary system with guarantees of future performance based on actuarial math. Imagine if you will that Whole Life creates both present and future values; two time lines working together to guarantee a financial result based on the value of your life. No other financial product does with a Whole Life does with safety, liquidity, and guarantees.</span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">I've found only one drawback to Whole Life that it does not address on its own because Whole Life policies exist within the current legacy financial system that is likely on it's last legs. I don't believe the dollar is going away anytime soon.</span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">Consider the former reserve currency of the world: the pound sterling. Called so because the currency in England literally was a pound of silver sterling. It still exists today but like the dollar, it's no longer redeemable for silver. Like all political money today, it is debt-based fiat created from nothing. </span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">The demise of the dollar is inevitable. Study the history of money. The question is how much longer will the United States government maintain its "exorbitant privilege"? It could be 10, 20, 30 more years. No one actually knows but you should be planning for a move back to sound money.</span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">Gold existed as sound money for over 5000 years before bankers replaced gold holdings with IOU's. We are likely to go back to a monetary system that is backed by a commodity like a gold but gold has proven to be corruptible by the banking elites. This is because at the international level, huge amounts of gold is too expensive to protect, audit, and move. </span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">Enter Bitcoin. The world’s first and only <b><i>working</i></b> answer to a trustless monetary system with no rulers. As Jeff Booth eloquently points out in his book The Price of Tomorrow and I’m going to paraphrase: the solution to a broken system cannot be created within the same broken system. The solution must be created outside of the existing system.</span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">Bitcoin exists outside of the current legacy financial system. Bitcoin solves the problem created by debt-based money but in a different way than Whole Life. While Whole Life policies create a system of money with guaranteed access and guaranteed results in the form of a unilateral contract backed by the full reserves of the life insurance company, the value of our IBC banking systems via Whole Life is denominated in fiat dollars which means the value of those dollars is trusted to the decisions of the Federal Reserve and its board of governors. Though dollar denominated Whole Life policies can and have kept pace with a 2-4% inflation per year through the use of the Paid Up Addition’s rider and dividends reinvested back into the policy, there is the issue of store of value of maintaining generational value when the fiat monetary system erodes faster than 2-4% for a sustained period of time which is why I believe Bitcoin should supplement Whole Life cash values to further insulate against the continued planned debasement of the dollar. </span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">Historically all fiat currency values go to zero. Bitcoin changes this because it introduces a rules based system with no rulers (no central bank, politicians, or CEO's) and Bitcoin has a finite supply that is always verifiable. The value of all bitcoins cannot be devalued through dilution. 21 million is all there will ever be. How many fiat dollars were created last year? How many fiat dollars will be created next year? 5 years from now, 20 years from now and so on? Nobody knows.</span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">We can answer these questions with Bitcoin. Bitcoin accomplishes the goal of sound money because the value of how much you own will be the same today as it will be at any point in the future. A dollar from 1971 is not worth the same dollar in 2022. One bitcoin will be one bitcoin 2052 or even 2152. </span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">Bitcoin offers a solution to credit based money that completely eliminates the government’s power to issue and therefore debase money over time. Americans have the hardest time understanding this because we live in a world where the Dollar is currently king but citizens of other countries like Argentina, Venezuela, Nigeria, and Lebanon (to name just a few) know firsthand the debauchery of government issued money because they experience higher inflation rates (rapid debasement) with more regularity than we do in America. It’s no wonder the adoption rate of Bitcoin is faster in those countries because it offers them a life raft to preserve their wealth.</span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">Bitcoin is digital gold but so much more. In world where we are conditioned to accept the prices must inflate in order for the system to work, we now have a technological breakthough that will be as important as the printing press was to breaking the monopoly the Catholic Church had over society 500 years ago. Bitcoin is freedom mone and it has the power to break the government monopoly on money that exists today which has financed endless hot wars, cold wars, to the "wars" on poverty, drugs, terror, and coming soon... the war on information and free speech. </span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">To thrive and prosper as a sovereign individual, I invite to go down the rabbit hole with me on Whole Life and Bitcoin. Follow me on Twitter <a href="https://twitter.com/JLMws_com" target="_blank">here</a>. </span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">Be mentally prepared that you will have to put in the work to eduate yourself about money. There is a serious learning curve so those who cannot make the time to study and those who are unwilling to learn will see the value of their labor devalued by the current fiat monetary system purposely designed to steal their time (in the form of fiat money) and will be unable to do anything about it.</span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;"><span style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0.2); background-color: white; caret-color: rgb(32, 33, 34); color: #202122; font-size: 16px;">The terms "</span><b style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0.2); background-image: none; border: 0px; caret-color: rgb(32, 33, 34); color: #202122; font-size: 16px; font-stretch: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">red pill</b><span style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0.2); background-color: white; caret-color: rgb(32, 33, 34); color: #202122; font-size: 16px;">" and "</span><b style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0.2); background-image: none; border: 0px; caret-color: rgb(32, 33, 34); color: #202122; font-size: 16px; font-stretch: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">blue pill</b><span style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0.2); background-color: white; caret-color: rgb(32, 33, 34); color: #202122; font-size: 16px;">" refer to a choice between the willingness to learn a potentially unsettling or life-changing truth by taking the red pill or remaining in contented ignorance with the blue pill.</span></span></p><p><span><span style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0.2); background-color: white; caret-color: rgb(32, 33, 34); color: #202122; font-family: verdana; font-size: 16px;"><br /></span></span></p><p><span style="font-family: verdana;"></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-family: verdana;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiABuL-7CpAuLsQN2CdocDiDpqWGFuu-78heNa1tNZVcHjM-9Tb2rj4quRalbOlHnhfAcptRD8uHHI1gxl1XKviNefrjLNn99-tLOv1sAcyO4gbZioiDbaxK6AodUoqOup1trp49YTS0_h-kO2RAlzC3mI-7GPewy7AYDeZXsQXa2xOk1LzDOEsl42Qww/s1030/Screen%20Shot%202022-11-29%20at%209.33.53%20PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="590" data-original-width="1030" height="229" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiABuL-7CpAuLsQN2CdocDiDpqWGFuu-78heNa1tNZVcHjM-9Tb2rj4quRalbOlHnhfAcptRD8uHHI1gxl1XKviNefrjLNn99-tLOv1sAcyO4gbZioiDbaxK6AodUoqOup1trp49YTS0_h-kO2RAlzC3mI-7GPewy7AYDeZXsQXa2xOk1LzDOEsl42Qww/w400-h229/Screen%20Shot%202022-11-29%20at%209.33.53%20PM.png" width="400" /></a></span></div><span style="font-family: verdana;"><br /><span style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0.2); background-color: white; caret-color: rgb(32, 33, 34); color: #202122; font-size: 16px;"><br /></span></span><p></p><p><span style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0.2); background-color: white; caret-color: rgb(32, 33, 34); font-size: 16px;"><span style="font-family: verdana;"><br /></span></span></p><p style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0.2); background-image: none; border: 0px; caret-color: rgb(32, 33, 34); font-size: 16px; font-stretch: inherit; line-height: inherit; margin: 0.5em 0px 1em; padding: 0px; vertical-align: baseline;"><span style="font-family: verdana;">In <span style="background-image: none; border: 0px; font-stretch: inherit; font-style: italic; font-variant-caps: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">The Matrix</span>, the main character Neo is offered the choice between a red pill and a blue pill by rebel leader Morpheus. Morpheus says "You take the blue pill... the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill... you stay in Wonderland, and I show you how deep the rabbit hole goes." The red pill represents an uncertain future and, unknown to Neo at the time he takes it, the pill frees him from the enslaving control of the machine-generated dream world. The pill allows Neo to escape into the real world, where he lives in a pod and is being used as a battery - and finds that living the "truth of reality" is harsher and more difficult than living in the ignorance which the blue pill offers: continuing his life within the confined comfort, without want or fear, of the Matrix's <a href="http://bit.ly/Matrix-red-pill" style="background-image: none; border: 0px; font-stretch: inherit; font-style: inherit; font-variant-caps: inherit; line-height: inherit; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" title="Simulated reality">simulated reality</a>.</span></p><p style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0.2); background-image: none; border: 0px; caret-color: rgb(32, 33, 34); color: #202122; font-size: 16px; font-stretch: inherit; line-height: inherit; margin: 0.5em 0px 1em; padding: 0px; vertical-align: baseline;"><span style="font-family: verdana;"><br /></span></p><p style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0.2); background-image: none; border: 0px; caret-color: rgb(32, 33, 34); color: #202122; font-size: 16px; font-stretch: inherit; line-height: inherit; margin: 0.5em 0px 1em; padding: 0px; vertical-align: baseline;"><span style="font-family: verdana;">Neo chooses the red pill and joins the rebellion.</span></p><p><span style="-webkit-tap-highlight-color: rgba(0, 0, 0, 0.2); background-color: white; caret-color: rgb(32, 33, 34); color: #202122; font-family: verdana; font-size: 16px;"><br /></span></p><p><span style="font-family: verdana;">The choice is now yours.</span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;"><span>To connect and get your questions answered, I invite you to book time with me here: </span><a href="http://www.IBC.guru">www.IBC.guru</a></span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">Thank you,</span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;">John Montoya</span></p><p><span style="font-family: verdana;"><br /></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-family: verdana;"><br /></span></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6aXq3gj1-_AQQ9Lm4L6aT-RCJvUdAXSxJVy73OVIQ6mb6BA6fLs2prNHhhVx-YUn7t0Er31kHKDGsxULTa-sT0u929uCw9ovzW-o7pMuJj9k0kFnJjg_6Awg3_yt1SwHyZfDLNFlSx5FNKd_I9yarDTYnD4uojw_uWl4jBRfcV9_051XEEtvFV7FH6w/s2048/The%20Secret%20To%20Lifetime%20Financial%20Security%20cover.jpg" style="margin-left: 1em; margin-right: 1em;"><span style="font-family: verdana;"><img border="0" data-original-height="2048" data-original-width="1365" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6aXq3gj1-_AQQ9Lm4L6aT-RCJvUdAXSxJVy73OVIQ6mb6BA6fLs2prNHhhVx-YUn7t0Er31kHKDGsxULTa-sT0u929uCw9ovzW-o7pMuJj9k0kFnJjg_6Awg3_yt1SwHyZfDLNFlSx5FNKd_I9yarDTYnD4uojw_uWl4jBRfcV9_051XEEtvFV7FH6w/w266-h400/The%20Secret%20To%20Lifetime%20Financial%20Security%20cover.jpg" width="266" /></span></a></div><span style="font-family: verdana;"><br /></span><div class="separator" style="clear: both; text-align: center;"><span style="font-family: verdana;"><br /></span></div><span style="font-family: verdana;"><br /></span><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;"><br /></span></p><p><span style="font-family: verdana;"><br /></span></p><p><br /></p><p><br /></p><p><br /></p>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-35413617082131018292022-03-04T10:37:00.001-08:002022-03-04T10:37:40.597-08:00Different Ideas On How To Use IBC (Including Retirement Income Options)<p> </p><p><i>(From the IBC Mailbag - below is an email exchange from an existing client with policies on every member of the family. I've consolidated my answers into a more readable format.)</i></p><p><i><br /></i></p><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; font-size: 14px; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-family: "Helvetica Neue";">Hi John, we have reached the seventh year of funding our original policies. Now I would like to explore the various ways to use the policies as we go forward. I have been re-reading R. Nelson Nash's book "Becoming Your Own Banker". Many of his examples feature much longer time frames than we are currently at, and we have no current cash needs. </span></p><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-family: "Helvetica Neue";"><br /></span></p></div><div style="caret-color: rgb(0, 0, 0); font-family: Calibri; font-size: 14px; text-size-adjust: auto;"><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-family: "Helvetica Neue";">The main options I see are:</span></p><p class="MsoNormal" style="font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in;"><span style="font-family: "Helvetica Neue";"><br /></span></p></div><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><b><span style="font-family: "Helvetica Neue"; font-size: 12pt;">Use dividends to pay premiums (although I have said we do not want to do this, I want to understand the math)<o:p></o:p></span></b></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: "Helvetica Neue";"> </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: "Helvetica Neue";">This is called an offset of premium. First the dividends would be used to offset the premium. If dividends do not completely cover the premium, then you could cover the difference or the death benefit could also be reduced to cover the shortfall.<o:p></o:p></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: "Helvetica Neue";"> </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><b><span style="font-family: "Helvetica Neue"; font-size: 12pt;">Borrow cash for expenses we would normally finance, such as cars etc.<o:p></o:p></span></b></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: "Helvetica Neue";"> </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: "Helvetica Neue";">My rule of thumb: Always shop for the money first. If you can obtain lower financing and the monthly payments fit in your cashflow, choose the lower traditional financing and keep cash value in the policy available for investment purposes. Always shop for the money first. <span class="Apple-converted-space"> </span><o:p></o:p></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: "Helvetica Neue";"> </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><b><span style="font-family: "Helvetica Neue"; font-size: 12pt;">Borrow cash for investment purposes, like the equipment leasing example.<o:p></o:p></span></b></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: "Helvetica Neue";"> </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: "Helvetica Neue";">This is the best use for cash values (assuming a person doesn’t have any high interest debt). IBC Whole Life policies are what I call money multipliers because they allow the safest form leverage a person can get anywhere. Policy owners can’t be turned down for a loan or have their cash reserves frozen, repayments are unscheduled. Safe leverage allows for money to work in two places instead of one hence money multiplier.<o:p></o:p></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: "Helvetica Neue";"> </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><b><span style="font-family: "Helvetica Neue"; font-size: 12pt;">Borrow cash to pay off our mortgage.<o:p></o:p></span></b></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: "Helvetica Neue";"> </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: "Helvetica Neue";">This is my least favorite option because mortgages at today’s rates are ridiculously cheap and locked for up to 30 years. The dollar is purposely designed to devalue over time so if there is one benefit to inflation, this is it. That said, everybody’s situation is different and if paying off the remainder of mortgage frees up additional cash flow to use in retirement, then that makes sense. I’m just in favorite of it if the mortgage is relatively newer and there is strong cash flow and a very healthy balance sheet of assets.<o:p></o:p></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: "Helvetica Neue";"> </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><b><span style="font-family: "Helvetica Neue"; font-size: 12pt;">Common Income Options With Whole Life.</span></b></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><br /></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: "Helvetica Neue";"> </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 10pt; margin: 0in; text-size-adjust: auto;"></p><ul style="text-align: left;"><li><span style="font-family: "Helvetica Neue"; font-size: 10pt;">Withdraw dividends for income: Nelson used to tell the story of how withdrew dividends from his first whole life policy while he was working and then later regretted it. This is because those dividends when re-invested helped compound both the cash value and the death benefit. In retirement, however, different story. Withdrawing dividends IS an option to consider to supplement income.</span></li></ul><div><span style="font-family: Helvetica Neue;"><br /></span></div><ul style="text-align: left;"><li><span style="font-family: "Helvetica Neue"; font-size: 10pt;">Another option is to withdraw cash values up to your contribution basis in the policy (non-taxable), and then take loans (also non-taxable) to continue supplementing income in retirement.</span></li></ul><p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: "Helvetica Neue";"> </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><b><span style="font-family: "Helvetica Neue"; font-size: 12pt;">Other Income Options (especially if you have 401k/IRA retirement accounts)<o:p></o:p></span></b></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><b><span style="font-family: "Helvetica Neue"; font-size: 12pt;"> </span></b></p><ul style="text-align: left;"><li><span style="caret-color: rgb(0, 0, 0); font-family: "Helvetica Neue"; font-size: 10pt;">Leverage the death benefit of a whole life policy to buy an income producing annuity from a 401k/IRA account. 401k/IRA’s are supposed to provide income via withdrawals in retirement but the problem is risk and longevity. Pull out too much too soon and/or the market has a major correction, there will be little left to withdraw in later years. The right type of annuities can provide up to a 50% increase in income over a 3-4% 401k/IRA withdrawal strategy and the annuity income is also guaranteed for life. The permanent death benefit of the Whole Life policy provides the replacement of any funds put into the annuity from the 401k/IRA.</span></li></ul><div><span style="font-family: Helvetica Neue;"><span style="font-size: 13.3333px;"><br /></span></span></div><ul style="text-align: left;"><li><span style="caret-color: rgb(0, 0, 0); font-family: "Helvetica Neue"; font-size: 10pt;">Volatility Buffer Strategy: Don’t buy the annuity, keep money in the 401k/IRA invested in the market. When the market loses money, do not withdraw from 401k/IRA retirement accounts. Instead withdraw/policy loan from Whole Life policy. This allows the market based money to recover from the prior year losses without depleting the accounts further during a down year. In this strategy, 401k/IRA (market based assets) will last longer.</span></li></ul><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><b><span style="font-family: "Helvetica Neue"; font-size: 12pt;"> </span></b></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><b><span style="font-family: "Helvetica Neue"; font-size: 12pt;">Use cash value to backstop self-insuring for collision & comprehensive coverage on our vehicles.<o:p></o:p></span></b></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><b><span style="font-family: "Helvetica Neue"; font-size: 12pt;"> </span></b></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: "Helvetica Neue";">I’ve been doing this for a long time. I only pay for liability insurance because I have the cash values to replace my car if it was totaled. The excess savings increases my cash flow and that positive cash flow feeds more premium.<o:p></o:p></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: "Helvetica Neue";"> </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-size: 11pt;"> </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-size: 11pt;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-size: 11pt;">If you have an interest in learning how Infinite Banking could benefit you and your family, please reach out to me here: <a href="http://www.IBC.guru">www.IBC.guru</a></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-size: 11pt;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-size: 11pt;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-size: 11pt;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-size: 11pt;">Thank you,</span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-size: 11pt;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-size: 11pt;"><br />John Montoya</span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><span style="font-size: 11pt;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"></p><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjbDlvTDjAaz9qqaH0uFq6t3vpBVYWaVGYwxbYSpv6VZQEl44fUa0viS5ruRg5l9iYDs6mOePBBp7pHIbo3svv7RqL4lUoHtOVb4BnIFKA0hwzU2AGA00wmFpzNQgsojJaDJpsUOczpSee8r7hcxDkfGfpvNA6hMvOC0P6GNw6Af7uigHbVAqvfqwnKPQ=s2048" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/a/AVvXsEjbDlvTDjAaz9qqaH0uFq6t3vpBVYWaVGYwxbYSpv6VZQEl44fUa0viS5ruRg5l9iYDs6mOePBBp7pHIbo3svv7RqL4lUoHtOVb4BnIFKA0hwzU2AGA00wmFpzNQgsojJaDJpsUOczpSee8r7hcxDkfGfpvNA6hMvOC0P6GNw6Af7uigHbVAqvfqwnKPQ=s320" width="213" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEgfWfz6nhKf5qZzIo-Y1Tq8yrLmtymmGITa99I0Yzj1BJH1LYcY5IA_ljelCi0dFWggdwfduTyXv4h4jDZcoE9xLRbff6oOOw-ha-_wCSrCfQ6NuJe0llIXNoR1GRw_ldzC0SaqSrV6baHR-wcFIQ_LCA9RVicQyO51LmaKnInQwHww1ofa5G4LYNi0dg=s1000" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="226" data-original-width="1000" height="72" src="https://blogger.googleusercontent.com/img/a/AVvXsEgfWfz6nhKf5qZzIo-Y1Tq8yrLmtymmGITa99I0Yzj1BJH1LYcY5IA_ljelCi0dFWggdwfduTyXv4h4jDZcoE9xLRbff6oOOw-ha-_wCSrCfQ6NuJe0llIXNoR1GRw_ldzC0SaqSrV6baHR-wcFIQ_LCA9RVicQyO51LmaKnInQwHww1ofa5G4LYNi0dg=s320" width="320" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><span style="font-size: 11pt;"><br /></span><p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 10pt; margin: 0in; text-size-adjust: auto;"><br /></p>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-605518926017157782022-01-31T14:41:00.015-08:002022-01-31T21:05:48.678-08:00The Easiest Way Own Bitcoin Without Having To Buy Bitcoin<p> </p><p><br /></p><p>I've been including some information in my monthly newsletter in recent months about Bitcoin to help introduce this new burgeoning asset class to wider audience. This month I'd like to go a step further to help those who maybe still aren't ready to exchange some of their fiat dollars to own Bitcoin for the first time. Or if you already own Bitcoin, perhaps this will be an introduction on how to stack additional "sats" (fractions of bitcoin called satososhi's) without even thinking about it and with no money out of pocket.</p><p><br /></p><p>First, it's important to understand what is Bitcoin so I'm including this fantastic <a href="https://open.spotify.com/episode/2dttyOlUItV7VO0UzoGIDh?si=CqKZAlvOTSqXDB2RuXJRaw&context=spotify%3Ashow%3A0YOEwxAR1uIx1a15QpqE0l&nd=1" target="_blank">Audio Glossary on Bitcoin by Natalie Brunell</a>. It's only 8 minutes and she covers a lot of ground in a short amount of time.</p><p><br /></p><p>Next I'd like to help you develop your WHY for owning even a small amount makes absolute sense. I'll do that by sharing my why.</p><p><br /></p><p>I bought my first bitcoin for $356 in 2016 and though I've purchased more since initially I bought it because I loved the idea of an alternative peer to peer financial system that could operate outside of government influence (manipulation/corruption) and without 3rd party (banks and Wall Street) permission. Does this sound familiar to Infinite Bankers and Austrian economists?</p><p><br /></p><p>And it offered one additional, very unique characteristic compared to fiat money (government controlled dollars): a fixed and predetermined supply of 21 million Bitcoins ever. Finally, an honest and sound money system with no counterparty risk that actually works regardless of how you or I or any government feels about it. Anyone with access to the internet can own a piece of this pristine digital asset.</p><p><br /></p><p>Compare this to centrally controlled fiat currencies which requires the creation of debt to issue new units of fiat. More buying units equals less purchasing power. Think of this next time you go to the grocery store and try to recall, depending on your age, what a gallon of milk cost last year versus 20 or even 40 years ago. </p><p><br /></p><p>This is the government stealing your labor through inflation and it is centrally planned to work this way. No conspiracy there except that "the powers that be" would you really prefer you not understand their capability to manipulate the money for as long as conceivably possible.</p><p><br /></p><p></p><table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto;"><tbody><tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEjks4V0xMCS-oDWQTXj4a6w8G4k52rt2P-Wr92TWXS7u-0OsDji2sJc3DwVv5aMmU53VTrX6hYctZno7j2SKNOpnF664SSZVOcDvyVL6JiND07YLG4BFeL0-lw7dlSj8fHWXK9I8O36bZuOED12Zm0cn3tWLFfqSM-Jxih6hxroA2a4Rl8bF23p_7kONA=s1386" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="772" data-original-width="1386" height="223" src="https://blogger.googleusercontent.com/img/a/AVvXsEjks4V0xMCS-oDWQTXj4a6w8G4k52rt2P-Wr92TWXS7u-0OsDji2sJc3DwVv5aMmU53VTrX6hYctZno7j2SKNOpnF664SSZVOcDvyVL6JiND07YLG4BFeL0-lw7dlSj8fHWXK9I8O36bZuOED12Zm0cn3tWLFfqSM-Jxih6hxroA2a4Rl8bF23p_7kONA=w400-h223" width="400" /></a></td></tr><tr><td class="tr-caption" style="text-align: center;"><span face="IBMPlexSans, Arial, sans-serif" style="background-color: white; color: #1a1a1b; font-size: 20px; text-align: left;">Since January 2020 the US has printed nearly 80% of all US dollars in existence. $4.0192 Trillion at the start of 2020, October 2021 $20.0831 Trillion</span></td></tr></tbody></table><br /><p></p><p><br /></p><p>The existing monetary system is the root cause for a century of endless wars, expanding government, and neverending political disfunction. Until Bitcoin, there was no free market alternative that could provide a solution to preserve the value of our labor.</p><p><br /></p><p>Think about what money is? It's a medium of exchange. We exchange our time and energy (work/labor) for money. But a lifetime of savings can be wiped out with a push of button because we are forced through Legal Tender laws to use politically controlled money that is purposely debased for the benefit of the entities in control of the money (government and banks). </p><p><br /></p><p>This debasement forfeits our labor ie savings gradually over time. In a lot of countries around the world though, it's gradually and then suddenly. Think Zimbabwe, Venezuela, Cuba, Turkey... Argentina, Mexico, Germany in the 1920's.</p><p><br /></p><p>If you think a default on money can't and won't happen in the United States, here is your wake up call. It happen in August of 1971. That's when President Nixon "temporarily" closed the international exchange window for countries to redeem dollars for gold. Simply put, there was an international run on the dollar because countries realized the United States government had more liabilities (created by the Vietnam war/new social welfare benefit programs) than gold to back to the supply of newly created money so they called in their gold reserves the US government had been safeguarding since World War 2. The "Nixon Shock", still in effect to this day, was effectively a dollar default and it made all curriencies pegged to the dollar with the dollar effectively pegged to the "faith and credit" of the United States government. For 50+ years we've been operating in this fiat world and generations of us have never experienced anything else. It's truly remarkable we've made it this far but there is a reckoning and we are now seeing it with highest inflations numbers in 4 decades.</p><p><br /></p><p>For example, government manipulated Consumer Price Index reported recently 7% inflation year over year. To rephrase this, the government stole 7% of the value of dollar demoninated assets you own. And the inflation number was probably twice that. </p><p><br /></p><p>How does any of this make you feel? Any type of theft should absolutely upset all of us but first we have to be aware of how it happens, who's behind it, and ultimately there has to be a working solution.</p><p><br /></p><p>As an Infinite Banking policy holder (12 policies and counting) and licensed practitioner, the idealism behind Bitcoin immediately resonated back in 2016. Bitcoin IS freedom and like Infinite Banking, it provides me the ability to take ownership, responsibility, and accountability for my financial life. </p><p><br /></p><p>So I bought Bitcoin initially on idealism. And I set up monthly drafts of $50 and then $100 month to see what would happen and I more or less forgot about it for a couple of years. I'll admit I didn't fully understand how Bitcoin worked. I mean, how exactly is the network secured? How does Proof of Work technology compare to Proof of Stake? Why can't governments ban it or shut it down?</p><p><br /></p><p>Though my faith has been rewarded in terms of long-term value since 2016, it wasn't until 2021 that I finally started reading about the technology behind Bitcoin with books like <a href="https://amzn.to/3AKllo2" target="_blank">The Bullish Case For Bitcoin</a> and December's newsletter book recommendation <a href="https://amzn.to/3GeYqm8">The Fiat Standard</a> that I really found my conviction for Bitcoin. Amazing what a bit of actual research will do.</p><p><br /></p><p>Now I know in talking to many of you, there is concern about the price volatility of Bitcoin or regret that you didn't buy it a few years back. Here's what I say to those people. You have to stop thinking of Bitcoin like an investment. This is very similar to how people confuse Infinite Banking Whole Life policies as an investment. Neither are truly investments. Reminder, IBC Whole Life is based on a contract and without extrapolating here, it is like a Swiss Army Knife in all benefits and functionality it provides. </p><p><br /></p><h1 style="text-align: left;">Bitcoin is a technology. Bitcoin is a protocol. Bitcoin is anti-Fiat. Bitcoin is a life raft. </h1><p><br /></p><p>After digging deeper into my research, this is my belief. I believe Bitcoin ranks up there as one of the most important inventions in history alongside the printing press, the internet, and electricity. </p><p><br /></p><p>At the most basic level, I think it's vital to understand Bitcoin as a unit of account. 21 million Bitcoins finite. That's it. Never any more than 21 million and each Bitcoin can be divided into fractions as mentioned above. This is important for Bitcoin to operate as a form of money. Bitcoin is more than money, but if people are going to adopt it as money, it first needs be measurable as a unit of account. </p><p><br /></p><p>In comparison, how many US dollars is there in circulation? Nobody truly knows but with Bitcoin you absolutely do know. It is 100% transparent at all times and 100% verifiable. Can't say that about any government controlled fiat currency.</p><p><br /></p><p>Now let's tackle store of value. If we know there will only be 21 million Bitcoin, we know if we began to hold Bitcoin instead of fiat currency, over the long term horizon Bitcoin will maintain its value better than an infinite supply of fiat currencies. This preserves our labor instead of being forced to spend our money (or take on risky investments) to stay ahead of the devaluation of our dollar denominated fiat. </p><p><br /></p><p>Bitcoin is able to maintain a store of value because it has the most transparent ledger ever created. Its transparency is also what makes it impossible to shut down, ban, or manipulate. Unlike fiat, Bitcoin is immutable. No government or large entity can change it. There's a Bitcoin saying which is one of my favorites: "You can't change Bitcoin. Bitcoin changes you."</p><p><br /></p><p>This might be difficult to understand right now, but keep this in mind. Bitcoin is simultaneously everywhere and nowhere at the same time. All the time. This is because Bitcoin is a ledger of account that tracks every single Bitcoin in existence through its code which every node and miner that operates the bitcoin software possesses. Nodes/Miners work together to confirm the existence of bitcoin and every transaction is then added to a blockchain ledger in a process that happens on average every 10 minutes forever. </p><p><br /></p><p>You can travel anywhere in the world and take your Bitcoin with you. It truly is a remarkable feat.</p><p><br /></p><p>I say this after being reminded during my trip to Costa Rica when I was asked upon leaving and returning if I had more than $10,000 cash or property in my possession. Of course not. I'm not going to carry on me that match cash to declare in order for it to be seized, but what about my Bitcoin? I find it fascinating that Bitcoin is simultaneously everywhere and nowhere at the same time. All the time. It exists on a public blockchain so it goes where I go but only I have the private keys (cryptographic permission) to unlock control of the Bitcoin I own regardless of where I am in the world. </p><p><br /></p><p>Because the network is so effectively decentralized (no center point of failure to shut down) it remains the most secure network that has ever existed. No other network competes with Bitcoin on security, reliability, and predictability.</p><p><br /></p><p>Think about this from a government perspective who might choose to be hostile (China has tried to ban it maybe 17 times now?) towards Bitcoin rather than embrace it (El Salvador). There is no Bitcoin company, no CEO, no board of directors, no on/off kill switch that any government can flip. That's why Bitcoin exists everywhere and nowhere at the same time. It is quite literally the internet of money.</p><p><br /></p><p>Think of why the internet was created. It was created as a messaging system in the event of a nuclear holocaust. We no longer think of the internet in terms of the TCP/IP protocol which is the agreed upon language of the internet but the purpose of the internet is to communicate effectively and efficiently through the worst man-created nightmare we could imagine. The internet cannot be shutdown. The same with Bitcoin because it operates on the rails provided by the TCP/IP protocol which connects to nearly everything these days. </p><p><br /></p><p>So Bitcoin is a technology that secures allows each individual with access to the internet to send and receive messages through the internet with the use of electricity. What type of technology? It is software that provides a base level messaging protocol via a peer to peer network (through the use of nodes and mining equipment using a copy of the Bitcoin software) to communicate a message ("is this Bitcoin transaction good or bad?") from one end of the earth to the other at the speed of light. The value of the message is inconsequential. In fact for the first couple of years of its existance Bitcoin had no value until 10,000 Bitcoins were famously used to buy 2 pizzas giving a single Bitcoin its first price in fiat terms. </p><p><br /></p><p>What makes the Bitcoin network secure? The very short answer: Proof of Work. Please read the recommended books for a detailed answer but I'll add this.: The current government fiat monetary system is based on something like Proof of Stake technology. How well does this Proof of Stake technology work for you and I? Social inequality grows unabated. Ironically, so does the federal government.</p><p><br /></p><p>The Keysian solution is always to "print" more money... and I think we're all starting to understand what's really happening.</p><p><br /></p><p>Check the annual inflation figures and think about how the <u>federal</u> government has expanded beyond anything the Founding Fathers of this country ever intended or possibly could of imagined. Money is truly the most powerful weapon against freedom that exists but it can also be the solution.</p><p><br /></p><p>This is why the <a href="https://coinshares.com/research/institutional-crypto-adoption-three-factors-watch#:~:text=Bitcoin%20has%20been%20growing%20at,at%20that%20time%20of%2063%25." target="_blank">Bitcoin Adoption Rate</a> exceeds even the adoption rate of the internet. Think about that for a moment. As great and transforming as the internet has been in so many countless ways in our life, more people around the world have adopted Bitcoin at a faster pace than use of the internet!</p><p><br /></p><p>Why? We are spoiled here in the United States because we currently hold status as the world's reserve currency. Every other currency is pegged to our dollar but for how much longer? As Voltaire said: Paper money eventually returns to its intrinsic value - zero.</p><p><br /></p><p>In other counties where weaker fiat currencies exist, the adoption of Bitcoin is the highest. This makes sense. Bitcoin is a life raft for these people who are experiencing debilitating inflation that make the value of their money worthless at rate Americans can't possibly fathom. We are truly blessed here in comparison but we have to realize that for us, it's just a slower bloodletting. </p><p><br /></p><p>As we learned from Nelson Nash and Infinite Banking, to be successful long-term we must think long-term. And long-term should be your horizon for holding Bitcoin. Anything less than 10 years and I would argue you are thinking in terms of price speculation and miscalculating the true value of Bitcoin. It is a life raft. It is the insurance against the evitable failure of government created fiat. </p><p><br /></p><p>Some of you may be thinking: If Bitcoin is such an amazing technological invention that preserves the value of our capital long-term, then how does Infinite Banking still make sense? Great question and I'll be answering it next month.</p><p><br /></p><p>For now though, if you don't own any Bitcoin, I would like you to "get off of zero". Here's the easiest way you can start "stacking sats" with no money out of pocket. </p><p><br /></p><h2 style="text-align: center;">GET OFF ZERO!</h2><p><span face="Arial, Helvetica, sans-serif" style="background-color: white; color: #222222; font-size: small;"><br /></span></p><p>If you are like most people, you have a credit card and that credit likely has a rewards program that gives you points that you can redeem towards something. That's all good and dandy but here's my truth now. I don't want reward points I can redeem on Amazon or travel points I can redeem on Southwest Airlines or points I can redeem to offset the price of my Costco membership.</p><p><br /></p><p>I want reward points that automatically pay me in Bitcoin that will be worth more to me and my family in future years as all fiat currencies continue to debase like they are created to do.</p><p><br /></p><p>Since September I've made the Blockfi credit card my primary credit card earning bitcoin every single month since. It is one of the easiest ways to "stack sats" I have found because all I have to do is remember to pay with BlockFi credit card.</p><p><br /></p><p>If you use this link <a href="https://blockfi.com/referred/?ref=9bbdfb2a" target="_blank">to register for your own BlockFi credit card</a>, the current offer is we'll both receive $40 of Bitcoin. Pretty nice!</p><p><br /></p><p>No annual fees and no international charges when you travel abroad. I used it everywhere I went in Costa Rica.</p><p><br /></p><p>Also, be sure to register your card with Visa to be notified each time your credit card is used. I do this with all my credit cards for security purposes. I like to get text messages to my phone/Apple Watch each time there's a transaction. The BlockFi card doesn't have this feature directly but it can be set up thru Visa using this link: <a href="https://purchasealerts.visa.com/vca-web/login">https://purchasealerts.visa.com/vca-web/login</a></p><p><br /></p><p><br /></p><p>Thank you for reading this far. I hope you are now willing to take the Bitcoin plunge with me. If you have questions for me regarding Bitcoin, please don't hesitate to reach out to me here: <a href="http://www.ibc.guru/">www.IBC.guru </a> </p><p><br /></p><p>Dollar cost averaging into Bitcoin is a topic I'll be covering in the near future and I'll be sharing the platform I use. If you want the answer sooner, just reach out. And yes, I'll be covering how to use IBC and Bitcoin together so stay tuned.</p><p><br /></p><p>Thank you,</p><p><br /></p><p>John Montoya</p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEh-8VtDMvc7R1-drDQgqZeL3zftiD0mU0HaRKJ6BnxcY-ug16oQLdxy4V0oxWGyFCxtxUNIBntnfvovCazSVJvOAYwesgF_AQ7Rr8iyJBI4An-YY_SRJJoaDXDdlweg5SZ35Ga4jrY_CJa12ZMpV707O0ZI1aVURCP-CpyBr0hWASzCIHWivOAEhXmqiA=s1000" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="226" data-original-width="1000" height="72" src="https://blogger.googleusercontent.com/img/a/AVvXsEh-8VtDMvc7R1-drDQgqZeL3zftiD0mU0HaRKJ6BnxcY-ug16oQLdxy4V0oxWGyFCxtxUNIBntnfvovCazSVJvOAYwesgF_AQ7Rr8iyJBI4An-YY_SRJJoaDXDdlweg5SZ35Ga4jrY_CJa12ZMpV707O0ZI1aVURCP-CpyBr0hWASzCIHWivOAEhXmqiA=s320" width="320" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/a/AVvXsEhBoJKsWLIJLTfZaxoAZOcZEKcaIizFHTKuzNrbNcnOMiDJYp6kATtgOkmtuAwv0_VSwhd0fdEaC8XUzIqSxfP4RHhCZv2lUcSqTew3dxCNDH6KF9TEHLXpvSUwbKNFdwhRGxQQ3dHWJ8G7Gh04di4spiDBB3GP683ecul0Zp9yAUaIHiCPDG4PfOCNEQ=s2048" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/a/AVvXsEhBoJKsWLIJLTfZaxoAZOcZEKcaIizFHTKuzNrbNcnOMiDJYp6kATtgOkmtuAwv0_VSwhd0fdEaC8XUzIqSxfP4RHhCZv2lUcSqTew3dxCNDH6KF9TEHLXpvSUwbKNFdwhRGxQQ3dHWJ8G7Gh04di4spiDBB3GP683ecul0Zp9yAUaIHiCPDG4PfOCNEQ=s320" width="213" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><p><br /></p><p><br /></p><div class="separator" style="clear: both; text-align: center;"><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><br /></div><br /><p><br /></p>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-49255243839497730332021-10-24T12:16:00.011-07:002021-10-24T12:26:32.884-07:00MYTH: Whole Life Premiums Are Due Forever<p><span style="font-family: arial;"><span style="background-color: white;">I'd like </span><span style="background-color: white; color: #222222;">to clarify one detail about Whole Life policies and it’s that the death benefit in a Whole Life policy (and ONLY a Whole Life policy) has a cash value component associated with it. In doing so I’m going to squash the common myth a person is stuck paying premiums every year for life or they lose their Whole life policy.</span></span></p><p><span style="font-family: arial;"><span style="background-color: white; color: #222222;"><br /></span></span></p><p><span style="color: #222222; font-family: arial;"><span style="background-color: white; caret-color: rgb(34, 34, 34);">Since what the majority of what people think they know about life insurance is based on someone else’s misunderstanding, let’s start with this critical error in thinking:</span></span></p><p><span style="color: #222222; font-family: arial;"><span style="background-color: white; caret-color: rgb(34, 34, 34);"><br /></span></span></p><p><span style="font-family: arial;"><span style="background-color: white; color: #222222;">99.9% people (including nearly all people licensed to sell life insurance) believe the death benefit is just that… a death benefit that only has value to the beneficiary. People have no idea that the death benefit in a Whole Life policy has additional benefits while you are alive! MAJOR MISUNDERSTANDING.</span></span></p><p><span style="font-family: arial;"><span style="background-color: white; color: #222222;"><br /></span></span></p><p><span style="font-family: arial;"></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-family: arial;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiegueY6f0ivvxC1Fa_YIUw075gvErpugNVJKj4XGLAzfK8ZlAS_fd8P44VBSdxTT6M0rJqE2AV-m_gCsZeRJ7dGEmgxSFiUc8tsCit_FkhNSgKV1kSsNzwJe1J0InK3O8YR-2d-2_CYjGm/s1851/E5A0F9B4-5CFB-4861-8A49-0F4D4495BDDD.jpeg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1215" data-original-width="1851" height="210" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiegueY6f0ivvxC1Fa_YIUw075gvErpugNVJKj4XGLAzfK8ZlAS_fd8P44VBSdxTT6M0rJqE2AV-m_gCsZeRJ7dGEmgxSFiUc8tsCit_FkhNSgKV1kSsNzwJe1J0InK3O8YR-2d-2_CYjGm/s320/E5A0F9B4-5CFB-4861-8A49-0F4D4495BDDD.jpeg" width="320" /></a></span></div><span style="font-family: arial;"><br /><span style="background-color: white; color: #222222;"><br /></span></span><p></p><p><span style="color: #222222; font-family: arial;"><span style="background-color: white; caret-color: rgb(34, 34, 34);">Let’s take a look at a 5 pay policy design funded for a client from existing banks assets into a Non-MEC IBC Whole Life policy to quickly illustrate the point:</span></span></p><p><span style="color: #222222; font-family: arial;"><span style="background-color: white; caret-color: rgb(34, 34, 34);"><br /></span></span></p><p><span style="color: #222222; font-family: arial;"><span style="background-color: white; caret-color: rgb(34, 34, 34);"><i>(Note: a 5-pay design should only be used if a person already has existing assets to fund a policy. It is not an ideal long-term funding strategy for IBC because one of the important concepts about IBC is that money needs to reside somewhere. Paying up a policy after 5 years means you will need to find a home for additional dollars elsewhere and you’ll need to open a new policy, if you medically qualify, to fund contribute additional premiums.)</i></span></span></p><p><span style="font-family: arial;"><span style="background-color: white; color: #222222;"><br /></span></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-family: arial;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi2KSyY4Lz2QgSn8Y_HWGoZRhxnCtFWyqFTUC_k37_Bdg9bebgqDBk_Q5OaRJ_jjNvnPZal-8wa7o6-ePTixqN66Be0qGPfGf-lacUeupSw19BsY1GG4BoJF6JTV0hHDRFKVNVskfuHNY9f/s2788/Screen+Shot+2021-09-10+at+12.26.04+PM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="886" data-original-width="2788" height="244" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi2KSyY4Lz2QgSn8Y_HWGoZRhxnCtFWyqFTUC_k37_Bdg9bebgqDBk_Q5OaRJ_jjNvnPZal-8wa7o6-ePTixqN66Be0qGPfGf-lacUeupSw19BsY1GG4BoJF6JTV0hHDRFKVNVskfuHNY9f/w631-h244/Screen+Shot+2021-09-10+at+12.26.04+PM.png" width="631" /></a></span></div><span style="font-family: arial;"><br /><span style="background-color: white; color: #222222;"><br /></span></span><p></p><p><span style="font-family: arial;"><span style="color: #222222;"><span style="background-color: white; caret-color: rgb(34, 34, 34);">Please first look at the Total Premium column (third from the left). </span></span></span></p><p><span style="font-family: arial;"><br /></span></p><p><span style="font-family: arial;">You will notice that in years 6 and 7 there is premium due in the policy of $26,148 and $25,398 respectively. This is because of the 7 Year Pay Rule which is an IRS test to help determine if a life insurance policy design meets the minimum requirements at policy issue to be classified as Non-MEC (tax-free access to cash values via policy loans) like the illustration above, or as MEC which </span><span style="font-family: arial;">will be treated as an investment (gains taxed as ordinary income) which we want to avoid.</span></p><p><span style="font-family: arial;"><br /></span></p><p><span style="font-family: arial;">So to bypass too much premium going into a life insurance too soon, premiums are needed to be spread out for for at least 7 years to support a minimum amount of death benefit and achieve Non-MEC status. </span></p><p><span style="font-family: arial;"><br /></span></p><p><span style="font-family: arial;">However, if you scan to the Premium Outlay column (fifth from the left), you’ll notice $0 is needed to satisfy the Total Premium owed in both years 6 and 7.</span></p><p><span style="font-family: arial;"><br /></span></p><p><span style="background-color: white; caret-color: rgb(34, 34, 34); color: #222222; font-family: arial;">How can the death benefit be used to offset the policyowner paying premium dollars out of pocket?</span></p><p><span style="font-family: arial;"><br /></span></p><p><span style="font-family: arial;">The answer lies in the true value of the death benefit. You should now notice that the death benefit has decreased in both years 6 and 7 to offset the Total Premium due in the policy.</span></p><p><span style="font-family: arial;"><br /></span></p><p><span style="font-family: arial;">By offsetting the premium (or reducing the death benefit), the policy owner is able to satisfy the minimum premium required in years 6 and 7 with no money out of pocket (premium outlay). </span></p><p><span style="font-family: arial;"><br /></span></p><h2 style="text-align: center;"><span style="font-family: arial;"><span style="background-color: white; color: #222222;">The Big Takeaway</span></span></h2><p><span style="font-family: arial;"><span style="background-color: white; color: #222222;"><br /></span></span></p><p><span style="font-family: arial;"><span style="background-color: white; color: #222222;"><u>This is possible because the FUTURE death benefit in a Whole Life policy has a PRESENT cash value component.</u></span></span></p><p><span style="font-family: arial;"><span style="background-color: white; color: #222222;"><u><br /></u></span></span></p><p><span style="background-color: white; color: #222222; font-family: arial;">The point bears repeating but in a different way: the death benefit is the future value of the present cash value.</span></p><p><span style="background-color: white; color: #222222; font-family: arial;"><br /></span></p><p><span style="background-color: white; caret-color: rgb(34, 34, 34); color: #222222; font-family: arial;">In the ledger above, this future death benefit is paying the premium. I</span><span style="background-color: white; color: #222222; font-family: arial;">n year 6 and 7 is an annual reduction in the death benefit to offset the minimum annual premium. Then beginning year 8 (7 Year Pay Rule has ended) the policy owner can make the election for a permanent reduction in the death benefit. </span></p><p><span style="font-family: arial;"><span style="background-color: white; color: #222222;"><br /></span></span></p><p><span style="font-family: arial;"><span style="background-color: white; color: #222222;">This rarely discussed policy election, known as “RPU” (Reduced Paid-Up), permanently offsets the minimum annual premium needed for the remaining contract years. No more premium due for the life of the contract.</span></span></p><p><br /></p><span style="font-family: arial;"><span style="background-color: white; color: #222222;">One of the biggest myths and misconceptions about Whole Life policies is that you have to pay the premium forever. Not true because the death benefit has a cash component and it’s this cash component that can be used to offset future premium.</span></span><div><span style="color: #222222; font-family: arial;"><span style="background-color: white; caret-color: rgb(34, 34, 34);"><br /></span></span></div><div><span style="color: #222222; font-family: arial;"><span style="background-color: white; caret-color: rgb(34, 34, 34);"><br /></span></span></div><div><span style="font-family: arial;">Do you still believe the myth that when you buy a Whole Life policy that you must pay the premiums forever?</span></div><div><span style="font-family: arial;"><span style="background-color: white;"><br /></span></span></div><div><span style="font-family: arial;"><span style="background-color: white;"><br /></span></span></div><div><span style="font-family: arial;"><span style="background-color: white;"><p style="font-family: -webkit-standard;"><span style="font-family: arial;"><span style="color: #222222;">Let’s quickly review the additional benefits of a Whole Life policy death benefit:</span><br style="color: #222222;" /><span style="color: #222222;"><br /></span></span></p><p style="font-family: -webkit-standard;"></p><ul style="font-family: -webkit-standard;"><li><span style="font-family: arial;"><span style="color: #222222;"><b><u>The obvious benefit</u></b>: tax-free inheritance</span></span></li><li><span style="font-family: arial;"><span style="color: #222222;"><b><u>The little known benefit</u></b>: cash value can be accessed tax-free via policy loans when policies are designed and funded properly</span></span></li><li><span style="font-family: arial;"><span style="color: #222222;"><b><u>The not-so-obvious benefit</u></b>: the death benefit in a Whole Life policy can provide premium payment flexibility to offset premium due either temporarily (one year at a time) or permanently. </span></span></li></ul></span></span><p></p><p><span style="font-family: arial;"><br style="background-color: white; color: #222222;" /><br style="background-color: white; color: #222222;" /><span style="background-color: white; color: #222222;">To learn more about Infinite Banking, message me or book a consultation here:</span></span></p><p><br /></p><p><a href="http://Www.IBC.guru" style="background-color: white; font-family: arial;">www.IBC.guru</a></p><p><span style="font-family: arial;"><br /></span></p><p><span style="font-family: arial;">Thank you,</span></p><p><span style="font-family: arial;"><br style="background-color: white;" /><br style="background-color: white; color: #222222;" /><span style="background-color: white; color: #222222;">John Montoya</span></span></p><p><span style="font-family: arial;"><span style="background-color: white; color: #222222;"><br /></span></span></p><p><span style="font-family: arial;"></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-family: arial;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhLX_B-A2nAUA7k5w0xzR__WWtHVJIfBekcwBt2f6NlAqzY_NJgWocmT4ywAxuwqahOqfH96SInMswpMfqgTJ2xes-ohhyjr3Kz91-U1bRNe1ZeOzBI_kXtWEhbjDEynliQsczHZwwquKQj/s1000/IBC+Horiz-Med.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="226" data-original-width="1000" height="72" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhLX_B-A2nAUA7k5w0xzR__WWtHVJIfBekcwBt2f6NlAqzY_NJgWocmT4ywAxuwqahOqfH96SInMswpMfqgTJ2xes-ohhyjr3Kz91-U1bRNe1ZeOzBI_kXtWEhbjDEynliQsczHZwwquKQj/s320/IBC+Horiz-Med.png" width="320" /></a></span></div><div class="separator" style="clear: both; text-align: center;"><span style="font-family: arial;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimoKnCPSHdlNtDk58SB751FhCOecZt0rYB9jW8VFI3ydvEfcT7hf7Zb_ODolpnc9za5Emy_lk8dyzPZfhXiNDmZHRbzajlL1gvibOpxM_pa7j1PAps5Yu0W5Bet15Yr_naKE6w4L7vJI6T/s2048/The+Secret+To+Lifetime+Financial+Security+cover.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimoKnCPSHdlNtDk58SB751FhCOecZt0rYB9jW8VFI3ydvEfcT7hf7Zb_ODolpnc9za5Emy_lk8dyzPZfhXiNDmZHRbzajlL1gvibOpxM_pa7j1PAps5Yu0W5Bet15Yr_naKE6w4L7vJI6T/s320/The+Secret+To+Lifetime+Financial+Security+cover.jpg" width="213" /></a></span></div><span style="font-family: arial;"><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><span style="background-color: white; color: #222222;"><br /></span></span><p></p></div>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-24926753758842911052021-09-10T11:24:00.002-07:002021-09-10T11:24:38.275-07:00What's the Difference Between Guaranteed vs Non-Guaranteed Cash Values?<p style="text-align: center;"> </p><p style="text-align: center;"><span style="font-family: Arial; font-size: 11pt; white-space: pre-wrap;"><br /></span></p><p style="text-align: center;"><span style="font-family: Arial; font-size: 11pt; white-space: pre-wrap;">Guaranteed Vs. Non-Guaranteed: Understanding Whole Life Values</span></p><span id="docs-internal-guid-9d00f941-7fff-eeaa-46ec-411d69475a0f"><div><br /></div><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">I'm to going to discuss the difference between guaranteed vs non-guaranteed values within a Whole Life policy, why having a foundation of guarantees is arguably the most important detail in setting up a “family banking system”, and revisit what distinguishes a contract from an investment.</span></p><br /><br /><h2 style="text-align: center;"><span style="font-family: Arial; white-space: pre-wrap;"><span style="font-size: medium;">Guaranteed vs Non Guaranteed</span></span></h2><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Guaranteed Values: this is the year by year performance guarantee in detail out to endowment (typically age 121). It’s based on math and actuarial science. Life insurance companies provide a blueprint based on worst case projections should a dividend never be paid during your lifetime. Something to keep in mind: All the life insurance companies we use for IBC have been around for at least 100 years, are A rated, and most importantly to me, they have never missed paying a dividend… ever! So the guaranteed values reflect a scenario of no dividends for the life of the contract yet it’s a scenario that’s failed to material even for one year. Let that sink in for a moment.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">You essentially have a fool proof system that is guaranteed to increase in value without any luck, skill, or guesswork during your lifetime. No other place for money exists with the same level of guarantees that what you want to have happen, will happen, even if you’re not around to see it. The last part of course speaks to the tax-free death benefit bestowed on your beneficiaries when you graduate to the next level.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Non-guaranteed values: Take the guaranteed values and now add non-guaranteed dividends from the surplus profit of a mutual based life insurance company. That’s it. Life insurance companies are highly profitable but legally they cannot guarantee the dividends they will pay out next year or, 5 years from now, or ever. By law, they have to project future values based on the current dividend scale. They can’t assume interest rates will increase in the future and project higher dividends. So the non-guaranteed projections are IMO conservative estimates of future performance.</span></p><br /><br /><h2 style="text-align: center;"><span style="font-family: Arial; white-space: pre-wrap;"><span style="font-size: medium;">The most important detail in setting up a “family banking system”</span></span></h2><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">For banking purposes, this is a one of a kind “turn-key”, ready made financial system that is created with the purchase of a Whole Life policy. IBC practitioners who have been around will recall that Nelson Nash was fond of saying: “Every time a person buys a life insurance policy they are starting a business from scratch.” That business of course is a private family banking business between you and the life insurance company at what Nelson would call the “you and me” level. </span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Of course, you do have to read between the lines of the contract to fully grasp the idea of Infinite Banking. This is where the majority of people who first stubble upon IBC get stuck in the weeds. They see a life insurance policy and get stuck.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">I once heard Nelson say that calling this financial system a Whole Life insurance policy is one of the worst things the life insurance industry has ever done. Right from the start, the life insurance industry provided a label that continues to confuse the masses to this day. The smallest minds see life insurance policy and that’s all it will ever will be. </span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Those of you who take the time to read Nelson’s book “Becoming Your Own Banker”, listen to our 30+ episodes now all related to Infinite Banking, and speak to an Authorized IBC practitioner, will realize what Nelson said from the beginning. The Infinite Banking Concept is an idea. It is not about life insurance. It’s about controlling the banking function at the you and me level to root out rent seeking traditional banking system that will have you believing their “lies, lies, lies”. </span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">And what is the biggest lie of all?</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">That you need Traditional banks to finance all the major capital expenditures in your lifetime. Simply not true but this of course is not what we are taught. 12 years of government schooling, 100’s of higher education degrees, and none of it teaches you the history of money and the importance of banking?</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Why? It’s about control. Control the flow of money, create debt, and traditional banks have a client for life. It’s parasitic relationship that need not to exist.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">To bring it back to Guaranteed Values, a whole life contract provides the legal framework for a financial entity that is guaranteed to increase in value every year of your life. The contract also provides you with guaranteed access to the cash values. You can never be turned away. </span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Imagine the peace of mind knowing you have posited your labor into a system protected by contract law, is considered an asset available for your use with no questions asked, and it is only solely by you. Nothing else in the financial world like it. No 401k/IRA or asset class can replicate the guarantees of a Whole Life contract.</span></p><br /></span><h2 style="text-align: left;"></h2><h2 style="text-align: center;"><span style="font-family: Arial; white-space: pre-wrap;"><span style="font-size: medium;">Contracts vs. Investments</span></span></h2><span><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">We'll refer to this as "Contractual" Wealth vs “Statement” wealth.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Statement wealth is when a client gives their money to an institution or organization in the hopes that they can get their money to grow. In this arrangement, the giver of the money assumes all the risk for the growth of the money. The organization sends a statement 1-4 times per year, telling them how they are doing at that time. </span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Contractual wealth is when a client gives money to someone else as part of a contract. The recipient of the money assumes the risk.</span></p><br /><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Reminders:</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><br /><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">IBC working is NOT predicated on dividend performance and chasing rate of return like you would with an investment. It is a financial system, period. </span></span><div><span><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></span></div><div><span><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></span></div><div><span><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">I</span></span><span style="font-family: Arial; font-size: 11pt; white-space: pre-wrap;">n order for a financial system to work, there must be a framework for money to move through it. That’s what we are establishing with IBC Whole Life policies. These contracts provide a framework for a financial system that allows you to control the flow of your money back to you where it can grow uninterrupted and so that we may continue to use that money repeatedly in our lifetime to build generational wealth. </span></div><div><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;"><br /></span></span><div><div><span><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;"><br /></span></span></div><div><span><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">Think of it this way: Instead of building beautiful fountains for the traditional banks, we can build our own. </span></span></div></div></div><div><span><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;"><br /></span></span></div><div><span><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;"><br /></span></span></div><div><span><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;"><br /></span></span></div><div><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;">If you have questions and would like to schedule a consultation with an Authorized Infinite Banking Practitioner, please visit the calendar here: <a href="http://www.IBC.guru">www.IBC.guru</a></span></span></div><div><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;"><br /></span></span></div><div><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;"><br /></span></span></div><div><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;">Thank you,</span></span></div><div><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;"><br /></span></span></div><div><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;"><br /></span></span></div><div><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;">John Montoya</span></span></div><div><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;"><br /></span></span></div><div><span style="font-family: Arial;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhLX_B-A2nAUA7k5w0xzR__WWtHVJIfBekcwBt2f6NlAqzY_NJgWocmT4ywAxuwqahOqfH96SInMswpMfqgTJ2xes-ohhyjr3Kz91-U1bRNe1ZeOzBI_kXtWEhbjDEynliQsczHZwwquKQj/s1000/IBC+Horiz-Med.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="226" data-original-width="1000" height="72" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhLX_B-A2nAUA7k5w0xzR__WWtHVJIfBekcwBt2f6NlAqzY_NJgWocmT4ywAxuwqahOqfH96SInMswpMfqgTJ2xes-ohhyjr3Kz91-U1bRNe1ZeOzBI_kXtWEhbjDEynliQsczHZwwquKQj/s320/IBC+Horiz-Med.png" width="320" /></a></div><br /><span style="font-size: 14.6667px; white-space: pre-wrap;"><br /></span></span><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimoKnCPSHdlNtDk58SB751FhCOecZt0rYB9jW8VFI3ydvEfcT7hf7Zb_ODolpnc9za5Emy_lk8dyzPZfhXiNDmZHRbzajlL1gvibOpxM_pa7j1PAps5Yu0W5Bet15Yr_naKE6w4L7vJI6T/s2048/The+Secret+To+Lifetime+Financial+Security+cover.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimoKnCPSHdlNtDk58SB751FhCOecZt0rYB9jW8VFI3ydvEfcT7hf7Zb_ODolpnc9za5Emy_lk8dyzPZfhXiNDmZHRbzajlL1gvibOpxM_pa7j1PAps5Yu0W5Bet15Yr_naKE6w4L7vJI6T/s320/The+Secret+To+Lifetime+Financial+Security+cover.jpg" width="213" /></a></div><br /></div><div><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;"><br /></span></span></div>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-4317061812138762312021-08-25T12:17:00.003-07:002021-10-02T04:29:11.897-07:005 Reasons Why Infinite Banking Makes More Sense Than You Realize<p>There's a reason our education system doesn't teach you about money. There's a reason our education system doesn't teach how the banking system works.</p><p><br /></p><p>Until you understand the reasons why, you are simply a pawn on the chessboard. Limited in movement and the least important piece in the financial game we are living.</p><p><br /></p><p>To help you grasp the bigger financial picture, you need to understand WHY Infinite Banking?</p><p><br /></p><p>If you don't understand the reasons why, you're like a rudderless boat drifting whereever the current moves. So here's 5 reasons to help you understand your financial WHY the Infinite Banking Concept (IBC) should be examined for your situation to determine how you can benefit:</p><p><br /></p><p>1. <b>IBC is a financial system that guarantees what you want to have happen, will happen, even if you're not around to see it happen. </b> An IBC Whole Life policy (designed with a Paid Up Addition's rider) comes with the strongest contractual guarantees that can be found anywhere. Uncorrelated compounding asset growth materializes every year without any luck, skill, or guesswork (even when you leverage policy loans to buy more wealth producing assets!). </p><p><br /></p><p>Whole life policies are the only type of permanent cash value life insurance contracts that endows meaning the cash value will eventually equal the death benefit regardless of whether that happens next week or at age 121. The financial success of a Whole Life plan is reverse-engineered to provide an annual blueprint of increasing value. No other place for money does the same. <i>Think about it.</i></p><p><br /></p><p>2. <b>IBC is full reserve system.</b> Unlike a traditional banking fractional reserve system where your deposits are leveraged to make new money to lend at interest, the life insurance industry is afforded no such money printing luxury. By law, all liabilities must be equaled by assets on the balance sheet of a life insurance company. This is called solvency. The life insurance industry has it and must maintain 100% solvency by law. This means money held by a life insurance company is with the safest financial institution and industry in the world. This alone is reason enough why banks place up to 25% of their reserves with life insurance companies in permanent cash value life insurance contracts called "Bank Owned Life Insurance." No life insurance company would ever risk more than they possibly have to in a traditional bank account. <i>Think about it.</i></p><p><br /></p><p>3. <b>You 100% control it.</b> A Whole Life policy is considered an asset because it appreciates in value every year and it is owned by the policyholder. There is government or 3rd party custodian with overriding control of a Whole Life policy. 401k/IRA's are created by the government meaning you partner with an ever changing landscape of politicians in Congress who in most cases fail to represent your best financial interests. A Whole Life policy in comparison is simple because it is a unilateral contract (grandfathered in place) between two like minded parties: you the individual and a privately owned mutual-based life insurance company. No rent seeking 3rd parties needed. <i>Think about it.</i></p><p><br /></p><p>4. <b>It cannot be taken away from you.</b> Money in a banking system can be confiscated at any time. While it is your money, you must follow the rules set by the banks. Banks can censor any of your financial transactions and are required to report anything deemed suspicious no matter how inoccuous. The IRS can put a lien on your bank accounts and restrict your access without warning. </p><p><br /></p><p>A properly designed and funded IBC Whole Life policy is a private contract existing outside the realm of bank and IRS reporting. Considered private property, it cannot be seized from your grasp (unlike a house). In short, you have to abide by bank rules and be on good terms with the IRS to have access to your own money. <i>Think about it.</i></p><p><br /></p><p>5. <b>You can live life on your own terms.</b> Infinite Banking is a strategy that creates an alternative financial system that protects you, your family, and your labor (translated into money). Whole Life policies have existed for nearly 200 years largely unchanged because the contract law that protects it as an asset along with the actuarial science that guarantees the financial performance have been proven to work since they were first created. </p><p><br /></p><p>Although Whole Life policies were not created to function as an alternative banking system, if one examines the banking function of a traditional bank (and the true reason why people bank... we all need access to large amounts of capital throughout our adult life) and compare it the banking function with a Whole Life policy, you will discover a far more robust system for money that not only puts individuals and families first, banking with Whole Life (the IBC strategy) also provides long-term benefits for the economy with less of government meddling or "aid" from your local and federal overseerers. Ultimately, the Infinite Banking strategy is about regaining your freedom from a top down system that doesn't ever want to be fully in control of your own life. <i>Think about it.</i></p><p><br /></p><p><br /></p><p>Elevate your understanding of money and banking, you will elevate your financial status. No need to be a financial pawn.</p><p><br /></p><p>To learn more about Infinite Banking, schedule time in my calendar at <a href="http://www.IBC.guru">www.IBC.guru</a>.</p><p><br /></p><p>Thank you,</p><p><br /></p><p>John Montoya</p><p><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg42TeTjBIL3Jdf-4977BKZOls8klUuXWvNfHXlMyA0uuS9weD4LBGHe1QR4rTSizTZUmEJMSF6mAoFbRGob-eguR3jjwm_FC3fL5WtjhdmU25VtT9h42bbvpZk94uCFfsGnB1ZGKwKII27/s1000/IBC+Horiz-Med.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="226" data-original-width="1000" height="72" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg42TeTjBIL3Jdf-4977BKZOls8klUuXWvNfHXlMyA0uuS9weD4LBGHe1QR4rTSizTZUmEJMSF6mAoFbRGob-eguR3jjwm_FC3fL5WtjhdmU25VtT9h42bbvpZk94uCFfsGnB1ZGKwKII27/s320/IBC+Horiz-Med.png" width="320" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimoKnCPSHdlNtDk58SB751FhCOecZt0rYB9jW8VFI3ydvEfcT7hf7Zb_ODolpnc9za5Emy_lk8dyzPZfhXiNDmZHRbzajlL1gvibOpxM_pa7j1PAps5Yu0W5Bet15Yr_naKE6w4L7vJI6T/s2048/The+Secret+To+Lifetime+Financial+Security+cover.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimoKnCPSHdlNtDk58SB751FhCOecZt0rYB9jW8VFI3ydvEfcT7hf7Zb_ODolpnc9za5Emy_lk8dyzPZfhXiNDmZHRbzajlL1gvibOpxM_pa7j1PAps5Yu0W5Bet15Yr_naKE6w4L7vJI6T/s320/The+Secret+To+Lifetime+Financial+Security+cover.jpg" width="213" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p><br /></p>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-61982424343503535962021-05-31T10:45:00.006-07:002021-05-31T11:24:36.338-07:00Comparison: Whole Life Policies and Tenet<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjQ8_XLwD_w7jPfzcIiWAizyzGeFIVfR699hbLhvQrx-aZe-7x2nbuuhKOewFnpq3Nm-XQwmE-PgFlw6Sbp9cxzbEeJxCR8Ri_pUX8_anp4hfSIAshJYWImwVigLKsu_3m47ZRN-YOXFVQs/s2000/Tenet.jpeg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2000" data-original-width="1350" height="409" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjQ8_XLwD_w7jPfzcIiWAizyzGeFIVfR699hbLhvQrx-aZe-7x2nbuuhKOewFnpq3Nm-XQwmE-PgFlw6Sbp9cxzbEeJxCR8Ri_pUX8_anp4hfSIAshJYWImwVigLKsu_3m47ZRN-YOXFVQs/w276-h409/Tenet.jpeg" width="276" /></a></div><p><br /></p><p><span style="-webkit-text-size-adjust: auto; font-family: Arial; font-size: 11pt; text-size-adjust: auto; white-space: pre-wrap;">Whether you care or not for the movie Tenet directed Christopher Nolan, it is for certain a unique film.</span></p><b><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /></b><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><b>(SPOILER ALERT)</b></span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">If you’ve heard somewhere that the movie is about time travel, it’s not. At least not in the sense of jumping to points in time in the future, past, or even sideways (thank you Lost). </span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Nope, this story offers something different. In a word: entropy.</span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Generations into the future a scientist has invented a machine capable of reversing the flow of time. It’s this machine that the future of mankind and the world hangs in the balance and it’s up to the protagonist to stop a doomsday event from happening.</span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">The strategy chosen to combat the antagonist is a called Temporal Pincer Movement.</span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Essentially, there is a (RED) team in the present moving forward and a (BLUE) team in the future working backward to and from, respectfully, the same point in time. </span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">This gives the distinct advantage of knowing what will happen and how to achieve the outcome desired.</span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">What’s the popular saying? </span></p><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><h2 style="text-align: center;"><span style="font-family: Arial; font-size: small; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">“Hindsight is 20-20”</span></h2><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">A temporal pincer movement gives the advantage of hindsight which is what makes the strategy so compelling and a juggernaut to overcome.</span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">If that sounds a bit confusing, watch the movie. As a fan of Inception, another film by Christopher Nolan, Tenet ranks up there with movies that are meant to be enjoyed multiple times. </span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Here’s where Tenet is similar to a Whole Life insurance policy.</span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">A Whole Life insurance policy is the </span><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">ONLY</span><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> financial product that gives you the hindsight of 20-20. It works moving forward and backward at the same time.</span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">I call this a “Financial Temporal Pincer Movement”.</span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Quite literally, the cash value in a Whole Life policy is </span><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">INCREASING</span><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"> every year at the same time that guaranteed death benefit has been solved for at age 121, the last official day of the policy contract. Once the policy is issued, the death benefit at the future age of 121 starts to unwind, or work backwards (entropy) to the original face amount from the policy issue date, or day 1 of the policy. </span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Each year in a Whole Life policy is a reference point when looking at your own illustration. The cash value each year gives the present value of the future death death benefit. </span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">The unknown variable is the year of your eventual passing. The end of your life is the point the cash value then blossoms in value to equal the death benefit. If you live all the way to age 121, the cash value has now become equal to the death benefit on the final day of the contract. We call this Endowment. </span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Essentially, what you desire to happen financially is set in a blueprint (fate, if you will) and the outcome is certain. No other financial vehicle offers this.</span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">What advantages would you have if you knew your financial fate 10, 25, or even 50+ years into the future?</span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">How much of peace of mind would you have knowing that everything you wanted to accomplish (nest egg for retirement, guaranteed income options, a proverbial tax-free mountain of cash to use for any purpose) will be available to you no matter how the stock or real estate markets perform?</span></p><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;">Do you have questions about Whole Life policies and Infinite Banking? <a href="http://Www.ibc.guru" target="_blank">Schedule time here</a>.</span></span></p><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;"><br /></span></span></p><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;"><br /></span></span></p><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;">Cheers,</span></span></p><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;"><br /></span></span></p><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;"><br /></span></span></p><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;">John Montoya</span></span></p><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial;"><span style="font-size: 14.6667px; white-space: pre-wrap;"><br /></span></span></p><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial;"></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-family: Arial;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwn9RVgY1LkwgVuanfraAUJql0KcGvNNZXwMBsQhotpEFMBAUf8SUyLIV3cPhXaBHqHvW_MSiKUS0yaAtCoDFg_w-yZeYYhKqZfbHoSTt_tyLrMpnZ-mVvKrde-8DTlksEYyG7RYu32UAg/s2048/The+Secret+To+Lifetime+Financial+Security+cover.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwn9RVgY1LkwgVuanfraAUJql0KcGvNNZXwMBsQhotpEFMBAUf8SUyLIV3cPhXaBHqHvW_MSiKUS0yaAtCoDFg_w-yZeYYhKqZfbHoSTt_tyLrMpnZ-mVvKrde-8DTlksEYyG7RYu32UAg/s320/The+Secret+To+Lifetime+Financial+Security+cover.jpg" /></a></span></div><div class="separator" style="clear: both; text-align: center;"><span style="font-family: Arial;"><br /></span></div><div class="separator" style="clear: both; text-align: center;"><span style="font-family: Arial;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhLX_B-A2nAUA7k5w0xzR__WWtHVJIfBekcwBt2f6NlAqzY_NJgWocmT4ywAxuwqahOqfH96SInMswpMfqgTJ2xes-ohhyjr3Kz91-U1bRNe1ZeOzBI_kXtWEhbjDEynliQsczHZwwquKQj/s1000/IBC+Horiz-Med.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="226" data-original-width="1000" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhLX_B-A2nAUA7k5w0xzR__WWtHVJIfBekcwBt2f6NlAqzY_NJgWocmT4ywAxuwqahOqfH96SInMswpMfqgTJ2xes-ohhyjr3Kz91-U1bRNe1ZeOzBI_kXtWEhbjDEynliQsczHZwwquKQj/s320/IBC+Horiz-Med.png" width="320" /></a></span></div><span style="font-family: Arial;"><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><span style="font-size: 14.6667px; white-space: pre-wrap;"><br /></span></span><p></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><p dir="ltr" style="-webkit-text-size-adjust: auto; line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-size-adjust: auto;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-ligatures: normal; font-variant-position: normal; vertical-align: baseline; white-space: pre-wrap;">Note, you may want to put on captions because there were points in the movie where you will attempt to read lips and rather than guess at what’s said and ruin the flow of the movie, captions will eliminate the need to wonder what was mumbled. </span></p><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" /><br style="-webkit-text-size-adjust: auto; text-size-adjust: auto;" />JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-60450489635754651812021-04-21T09:44:00.005-07:002021-04-22T09:59:45.529-07:00How Do Life Insurance Companies Invest?<p> </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhAasfXKXuxPJGuMCQ0cvobbiRTZylBMweUrhu20qibb3LICJhjMDvU2I2ojJYfoJ18RoSFjmNxgsgXL5W3AofSbUvsMeIi78i_q-1TJRcilOyP2XFmkSBi36FFVex4o_VTGiwJfxp7LF4T/s2048/LIfe+insurance+portfolio+1.jpeg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1527" data-original-width="2048" height="425" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhAasfXKXuxPJGuMCQ0cvobbiRTZylBMweUrhu20qibb3LICJhjMDvU2I2ojJYfoJ18RoSFjmNxgsgXL5W3AofSbUvsMeIi78i_q-1TJRcilOyP2XFmkSBi36FFVex4o_VTGiwJfxp7LF4T/w569-h425/LIfe+insurance+portfolio+1.jpeg" width="569" /></a></div><br /><p></p><p><br /></p><p><span style="font-family: arial;">Every so often I'm asked how life insurance companies invest their assets. The concern centers around the safety of life insurance companies relative to what the typical consumer knows about banks and investment firms.</span></p><p><span style="font-family: arial;"><br /></span></p><h3 style="text-align: left;"><span style="font-family: arial; font-size: small;">Can life insurance companies actually be trusted with your hard earned savings? </span></h3><p><span style="font-family: arial;"><br /></span></p><p><span style="font-family: arial;"><i>Banks have FDIC insurance. What do life insurance companies in comparison have to protect the assets and benefits promised to policy owners?</i></span></p><p><span style="font-family: arial;"><br /></span></p><p><span style="font-family: arial;">Let's start with the headline question: </span></p><p><span style="font-family: arial;"><br /></span></p><p><span style="font-family: arial;"><i>How do life insurance companies invest?</i></span></p><p><span style="font-family: arial;"><br /></span></p><p><span style="font-family: arial;">You can see from the graph above from the annual report of an A rated life insurance company that 76.9% of this company's portfolio of assets is held in Cash, Short-Term and Investment Grade Bonds. Less than 1% is dedicated to Common Stock. </span></p><p><span style="font-family: arial;"><br /></span></p><p><span style="font-family: arial;">In other words, life insurance companies do not bet the farm on speculative assets and once they invest in debt maturities like corporate bonds, they do not buy and sell. Life insurance companies collect interest and then recoup the original principal. Rinse and repeat. Boring but safe. </span></p><p><span style="font-family: arial;"><br /></span></p><p><span style="font-family: arial;">Also, quite effective given the performance history of life insurance companies in the United States through the Great Depression and too many to count economic crisis that have imperiled the savings of Americans held with bank and investment firms in comparison.</span></p><p><span style="font-family: arial;"><br /></span></p><p><span style="font-family: arial;">Furthermore, there are additional levels of safety<span style="white-space: pre-wrap;"> to know and appreciate about the life insurance industry.</span></span></p><p><span style="white-space: pre-wrap;"><span style="font-family: arial;"><br /></span></span></p><p><span style="white-space: pre-wrap;"><span style="font-family: arial;">First, all life insurance companies are regulated at the state level (sometimes by multiple states) and audited by independent credit agencies to ensure they maintain 100% solvency at all times. Industry average is 105% solvency meaning life insurance companies maintain more assets than liabilities at all times.</span></span></p><span id="docs-internal-guid-f054c829-7fff-e218-16b5-b4c5ad755472"><span style="font-family: arial;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;">In comparison, the fractional reserve banking industry can lend the money you keep on deposit 10x over. This is the reason traditional banks have FDIC to “insure” customer deposits and no such government entity exists for the life insurance industry. Simply put, each life insurance company is 100% solvent at all times.</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;"><br /></span></span></p><span style="font-family: arial;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;">By the way, did you know FDIC insures over $10 trillion dollars in bank deposits with barely $100 billion dollars in assets? It doesn’t inspire confidence but that’s government planning for you...</span></span></p><span style="font-family: arial;"><br /><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;">Additional levels of safety exist. Since all life insurance companies are regulated at the state level, if a life insurance company falls below 100% solvency, the state can take over and run the company until 100% solvency returns. </span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;"><br /></span></span></p><span style="font-family: arial;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;">In the rare case where a life insurance company cannot return to 100% solvency, other life insurance companies have historically taken over trouble companies by buying the book of business to ensure policy holders remain whole and contracts are honored. This is done to ensure promises to policyholders are kept. The life insurance industry operates based on trust and the industry knows there would be no reason to buy a life insurance policy if the public did not have trust in the system.</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;"><br /></span></span></p><span style="font-family: arial;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;">Finally, there is a last safety net. If no insurance company steps in to buy the book of business of a troubled life insurance company, there does exist a safety net provided by each state varying between $100,000 to $300,000 per policy. </span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;"><br /></span></span></p><span style="font-family: arial;"><br /></span><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;">In summary, due to the strict solvency regulation imposed on the industry and safety nets provided by the industry. policy owners have the peace of mind knowing their hard earned savings held in an annuity or permanent cash value life insurance policy is safe in the hands of the most disciplined and trusted industry in the world. </span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;"><br /></span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;"><br /></span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;">How do I know this? Even banks park up to 25% of their reserves with life insurance companies. </span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;"><br /></span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;"><br /></span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;">My advice: Do as the banks do, not what they advise you to do.</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;"><br /></span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><span style="font-family: arial;"><br /></span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="white-space: pre-wrap;"><span style="font-family: arial;">Sincerely,</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="white-space: pre-wrap;"><span style="font-family: arial;"><br /></span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="white-space: pre-wrap;"><span style="font-family: arial;"><br /></span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="white-space: pre-wrap;"><span style="font-family: arial;">John Montoya</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="white-space: pre-wrap;"><span style="font-family: arial;"><br /></span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="white-space: pre-wrap;"><span style="font-family: arial;">P.S.</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="white-space: pre-wrap;"><span style="font-family: arial;"><br /></span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="white-space: pre-wrap;"><span style="font-family: arial;"><br /></span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="white-space: pre-wrap;"><span style="font-family: arial;">Are you interested in learning more about Infinite Banking?</span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="white-space: pre-wrap;"><span style="font-family: arial;"><br /></span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: arial;"><span style="white-space: pre-wrap;">Subscribe to my <a href="https://johnmontoya.myhomehq.biz/subscribe" target="_blank"><b>Monthly Newsletter</b></a></span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: arial;"><a href="http://www.thefifthedition.com" target="_blank"><b>IBC Podcast</b></a></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><a href="http://www.ibc.guru" target="_blank"><b>Calendar</b></a></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: arial;"><span style="white-space: pre-wrap;"><br /></span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial;"><span style="white-space: pre-wrap;"><br /></span></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial;"></span></p><div class="separator" style="clear: both; text-align: center;"><span style="font-family: Arial;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwn9RVgY1LkwgVuanfraAUJql0KcGvNNZXwMBsQhotpEFMBAUf8SUyLIV3cPhXaBHqHvW_MSiKUS0yaAtCoDFg_w-yZeYYhKqZfbHoSTt_tyLrMpnZ-mVvKrde-8DTlksEYyG7RYu32UAg/s2048/The+Secret+To+Lifetime+Financial+Security+cover.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwn9RVgY1LkwgVuanfraAUJql0KcGvNNZXwMBsQhotpEFMBAUf8SUyLIV3cPhXaBHqHvW_MSiKUS0yaAtCoDFg_w-yZeYYhKqZfbHoSTt_tyLrMpnZ-mVvKrde-8DTlksEYyG7RYu32UAg/s320/The+Secret+To+Lifetime+Financial+Security+cover.jpg" /></a></span></div><span style="font-family: Arial;"><br /><span style="font-size: 14.6667px; white-space: pre-wrap;"><br /></span></span><p></p><br /><br /></span><div><span><br /></span></div>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-1732206391386003552021-03-17T11:24:00.002-07:002021-03-17T11:24:34.036-07:00Underwriting Guide: Table for Height and Weight<div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: left;">This is one insurance companies table but all insurance companies are going to be within the ranges provided below.</div><div class="separator" style="clear: both; text-align: left;"><br /></div><div class="separator" style="clear: both; text-align: left;">Based on your height and weight alone, what rate class would you qualify for?</div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgofpAPsplxSU5xSAwRlHaOZI9Ihpp9C-zywM8lA5ZtP__TwNMD46PZS0E2jPL5zUw2Mb_dY9JpUKEnUrEgUPNyNY_fgp4cx4EXQ0UFmfMNEPi3uPflOoeGCR16ak1aMxbUmBvrY_S5TrQo/s2020/Screen+Shot+2021-03-13+at+11.08.52+AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2020" data-original-width="1734" height="661" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgofpAPsplxSU5xSAwRlHaOZI9Ihpp9C-zywM8lA5ZtP__TwNMD46PZS0E2jPL5zUw2Mb_dY9JpUKEnUrEgUPNyNY_fgp4cx4EXQ0UFmfMNEPi3uPflOoeGCR16ak1aMxbUmBvrY_S5TrQo/w568-h661/Screen+Shot+2021-03-13+at+11.08.52+AM.png" width="568" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div>If you have questions about your health and are curious about whether you can get approved, schedule a consultation here: <a href="http://www.IBC.guru">www.IBC.guru</a>.<div><br /></div><div><br /><div class="separator" style="clear: both; text-align: center;"><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoFJ0bwRIlDQSnprU9B4vvZu4TUOlsD-CFkvqrl4LdsQq487GX8gyXEirSZHarjm8IbZ-hjo0ZLczGSdioMXpeu2TOsQc0KPlYz4M4uwmFcvph1OG5kZ6_yvZ-ho8cY6Eh3U02NEkk95En/s1000/IBC+Horiz-Med.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="226" data-original-width="1000" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoFJ0bwRIlDQSnprU9B4vvZu4TUOlsD-CFkvqrl4LdsQq487GX8gyXEirSZHarjm8IbZ-hjo0ZLczGSdioMXpeu2TOsQc0KPlYz4M4uwmFcvph1OG5kZ6_yvZ-ho8cY6Eh3U02NEkk95En/s320/IBC+Horiz-Med.png" width="320" /></a></div><br /><p></p><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><p></p></div>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-26771082996014152492021-03-13T10:42:00.003-08:002021-03-13T11:07:47.003-08:00IBC Mailbag: How Does A Policy Loan Create Positive Arbitrage?<p></p><div class="separator" style="clear: both; text-align: left;"><i>Question from a client: <span style="caret-color: rgb(0, 0, 0); font-family: "Helvetica Neue"; font-size: 13.3333px;">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?</span></i></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;">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.<o:p></o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><br /></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><o:p> </o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;">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.<o:p></o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><br /></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><o:p> </o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;">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.<o:p></o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><br /></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><o:p> </o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;">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 <span style="font-size: 14.6667px;">the positive arbitrage spread grows further still.</span><span class="Apple-converted-space" style="font-size: 14.6667px;"> </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span class="Apple-converted-space" style="font-size: 14.6667px;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-size: 11pt;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-size: 11pt;">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! </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><o:p></o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span class="Apple-converted-space"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><o:p> </o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;">Appreciate all the questions. Please let me know if you have any other!</p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><br /></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><br /></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;">Thank you,</p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><br /></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><br /></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><br /></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;">John Montoya</p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><br /></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmLd6XNkSo56XKntebn_VKIo_aFtLutMrQORSmI2fgR2SWX9ybuVQfdyKryKAO2bHccC51WrA4FwQh2sqgAQl4RgEn11sAp-XJPWE0a39KcvHHn49l45Q-LLxcsFvE5jlhBT7P_8zFI_fP/s1024/SealVert_DIscnFlame-1.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="726" data-original-width="1024" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmLd6XNkSo56XKntebn_VKIo_aFtLutMrQORSmI2fgR2SWX9ybuVQfdyKryKAO2bHccC51WrA4FwQh2sqgAQl4RgEn11sAp-XJPWE0a39KcvHHn49l45Q-LLxcsFvE5jlhBT7P_8zFI_fP/s320/SealVert_DIscnFlame-1.jpg" width="320" /></a></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimoKnCPSHdlNtDk58SB751FhCOecZt0rYB9jW8VFI3ydvEfcT7hf7Zb_ODolpnc9za5Emy_lk8dyzPZfhXiNDmZHRbzajlL1gvibOpxM_pa7j1PAps5Yu0W5Bet15Yr_naKE6w4L7vJI6T/s2048/The+Secret+To+Lifetime+Financial+Security+cover.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimoKnCPSHdlNtDk58SB751FhCOecZt0rYB9jW8VFI3ydvEfcT7hf7Zb_ODolpnc9za5Emy_lk8dyzPZfhXiNDmZHRbzajlL1gvibOpxM_pa7j1PAps5Yu0W5Bet15Yr_naKE6w4L7vJI6T/s320/The+Secret+To+Lifetime+Financial+Security+cover.jpg" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><br /></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><br /></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><br /></p><p></p>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-43931480293146153582021-02-25T06:06:00.006-08:002021-02-25T06:06:49.114-08:00Retirement Planning 101: The Income Trap<p><br /></p><span id="docs-internal-guid-338fd976-7fff-0935-73a9-ed6600520508"><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><b>What if the biggest risk to your 401k isn’t risk of loss or unknown fees dragging down your returns over time?</b></span></p><b><br /></b><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><b>What if the biggest risk is you might have to live off of 3 to 4% withdrawals per year in retirement?</b></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">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.</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">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?</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">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. </span></p><br /><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Every $1,000,000 you save would only net you $40,000 a year, and this is before taxes! </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Do the math for your situation.</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">How much will you need saved to generate the income you need?</span></p><br /><h2 style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-align: left;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: normal; vertical-align: baseline; white-space: pre-wrap;">Here’s Wall Street’s retirement plan for you.</span></h2><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Save more, work longer, take more risk, or make sacrifices to retire sooner.</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Or it's some combination of those options.</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><i><b>Which option do you choose?</b></i></span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">None, right?</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Hopefully, you’re starting to get the picture.</span></p><br /><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">You see, if you’re within 10 to 15 years of retirement, every dollar you save for your retirement must now be allocated as <b>efficiently</b> as possible to produce </span><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; font-weight: 700; vertical-align: baseline; white-space: pre-wrap;">as much income</span><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"> as possible. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">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 <b>as little money as possible</b>.</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">This means having a retirement plan that is <b>ruthlessly efficient</b> in obtaining the highest and most desired retirement end goal: Income and as much of it as possible!</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Sadly, here’s the reality you'll face when you go to retire unless you get your retirement income conversation started now: </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">All your retirement assets in the market is the riskiest retirement strategy you can take unless you know the answers to these 2 questions:</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">How long will you live?</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">How much income will you need?</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">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?</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Risk of loss isn’t the biggest threat to your retirement plan. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">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. </span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><b><br /></b></span></p><h2 style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt; text-align: center;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><b>THE BIGGEST ASSET THEORY IS A LIE</b></span></h2><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">That’s why retirement income planning is on the verge of the biggest changes in over a generation.</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Ask any retiree with a pension if they would trade their pension for a 401k. It’ll never happen!</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Fun fact: people retiring with pensions live longer than those retiring without a pension.</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">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.</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">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.</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">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.</span></p><br /><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">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!</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">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?</span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;"><br /></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 14.6667px; white-space: pre-wrap;">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. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">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”. </span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">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.</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; vertical-align: baseline; white-space: pre-wrap;">Use the link here to schedule your strategy session:</span></p><br /><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><span style="color: #1155cc; font-family: Arial; font-size: 11pt; font-variant-east-asian: normal; font-variant-numeric: normal; text-decoration-line: underline; text-decoration-skip-ink: none; vertical-align: baseline; white-space: pre-wrap;"><a href="http://bit.ly/retirement-income-strategy" style="text-decoration-line: none;">http://bit.ly/retirement-income-strategy</a></span></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><br /></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">Thank you,</p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;"><br /></p><p dir="ltr" style="line-height: 1.38; margin-bottom: 0pt; margin-top: 0pt;">John Montoya</p><div><br /></div><div><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwn9RVgY1LkwgVuanfraAUJql0KcGvNNZXwMBsQhotpEFMBAUf8SUyLIV3cPhXaBHqHvW_MSiKUS0yaAtCoDFg_w-yZeYYhKqZfbHoSTt_tyLrMpnZ-mVvKrde-8DTlksEYyG7RYu32UAg/s2048/The+Secret+To+Lifetime+Financial+Security+cover.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwn9RVgY1LkwgVuanfraAUJql0KcGvNNZXwMBsQhotpEFMBAUf8SUyLIV3cPhXaBHqHvW_MSiKUS0yaAtCoDFg_w-yZeYYhKqZfbHoSTt_tyLrMpnZ-mVvKrde-8DTlksEYyG7RYu32UAg/s320/The+Secret+To+Lifetime+Financial+Security+cover.jpg" /></a></div><br /><div><br /></div></span>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-77971835747280002822021-02-08T09:57:00.025-08:002022-06-20T13:01:07.219-07:00Bitcoin Newbies: The Best Way To Start Owning Bitcoin<p><br /></p><div style="text-align: center;"><b><span style="font-size: 36px;"><span data-markholder="true"></span></span></b></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPawNS5sLNCMRL9qE25JMfE-xqAy6iUDLnJqR4B2gyu9AepNpo2qNUGpMqAs8Rt0CY8jqW2jpF6cqyvwyy6vOAvCvLmGWoKCnnF-x9SlWvlhHemBtwDUTky0U_YnCkeKiFxUKRtEzMuwdI/s1834/Screen+Shot+2021-02-08+at+10.56.20+AM.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1230" data-original-width="1834" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPawNS5sLNCMRL9qE25JMfE-xqAy6iUDLnJqR4B2gyu9AepNpo2qNUGpMqAs8Rt0CY8jqW2jpF6cqyvwyy6vOAvCvLmGWoKCnnF-x9SlWvlhHemBtwDUTky0U_YnCkeKiFxUKRtEzMuwdI/s320/Screen+Shot+2021-02-08+at+10.56.20+AM.png" width="320" /></a></div><br /><i><br /></i></div><div><span style="font-family: helvetica;"><i>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. </i></span></div><div><span style="font-family: helvetica;"><i><br /></i></span></div><div><span style="font-family: helvetica;"><i>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. </i></span></div><div><span style="font-family: helvetica;"><i><br /></i></span></div><div><span style="font-family: helvetica;"><i><b>Bitcoin is the internet of money.</b> It's time to start building a position if you haven't already! </i></span></div><div><span style="font-family: helvetica;"><i><br /></i></span></div><div><span style="font-family: helvetica;"><i>(FULL DISCLOSURE: the links below are referral codes. You and I may both receive Bitcoin when you use the referral code to register.)</i></span></div><div><br /></div><div><br /></div><h2 style="text-align: center;"><b><span style="font-size: 48px;">Earn Bitcoin When You Shop</span></b></h2><div style="text-align: left;"><br /></div><div><br /></div><div><b><span style="font-size: 30px;"><span style="color: #674ea7;">Lolli</span></span></b></div><div><br /></div><div><span style="font-family: helvetica;">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.</span></div><div><span style="font-family: helvetica;"><br /></span></div><div><span style="font-family: helvetica;">Use my Referral Code and we'll be earn free Bitcoin: <a href="https://www.lolli.com/share/qZRTsDN5PU">https://www.lolli.com/share/qZRTsDN5PU</a></span></div><div><br /></div><div><br /></div><div><br /><br /></div><div class="separator" style="clear: both; text-align: center;"><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguQCUFC5eoKWtP5dj2oTepfPtZy0eMARqzhis1zUX4FmlDnafJQGY-6dyOA50rutU3ubE2pKNkoEsJVWCD5sCr6t5IeD5BlrTTH9gJ-Td5BW3_-uD4sX7fFhNP3jC07oVpjjFzpcpneXO7/s1246/Lolli+Priceline.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="674" data-original-width="1246" height="306" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguQCUFC5eoKWtP5dj2oTepfPtZy0eMARqzhis1zUX4FmlDnafJQGY-6dyOA50rutU3ubE2pKNkoEsJVWCD5sCr6t5IeD5BlrTTH9gJ-Td5BW3_-uD4sX7fFhNP3jC07oVpjjFzpcpneXO7/w566-h306/Lolli+Priceline.jpg" width="566" /></a></div><br /><br /></div><br /><h2 style="text-align: center;"><b><span style="font-size: 48px;">Where to Buy and Hold Bitcoin</span></b></h2><h2 style="text-align: center;"><b style="text-align: left;"><span style="font-size: 30px;"><span style="color: #1885e2;"><br /></span></span></b></h2><p><span style="font-family: helvetica;"><span style="font-size: small;">From my user experience Strike is the best way to buy Bitcoin. However, you do not want to keep you Bitcoin on exchanges. </span></span></p><p><span style="font-family: helvetica;"><span style="font-size: small;"> </span></span></p><p><span style="font-family: helvetica;"><span style="font-size: small;"><span style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; display: inline !important; float: none; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;">Join Strike and earn $10 when you sign up and verify your account using my referral code OGPYR7:</span><br style="-webkit-text-stroke-width: 0px; background-color: white; color: #222222; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; text-align: start; text-decoration-color: initial; text-decoration-style: initial; text-decoration-thickness: initial; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;" /><a data-saferedirecturl="https://www.google.com/url?q=https://invite.strike.me/OGPYR7&source=gmail&ust=1655841539362000&usg=AOvVaw1rVQeK88QfDbe1vg52rm9G" href="https://invite.strike.me/OGPYR7" style="-webkit-text-stroke-width: 0px; background-color: white; color: #1155cc; font-style: normal; font-variant-caps: normal; font-variant-ligatures: normal; font-weight: 400; letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px;" target="_blank">https://invite.strike.me/<wbr></wbr>OGPYR7</a> <br /></span></span></p><p><span style="font-family: helvetica;"><span style="font-size: small;"><br /></span></span></p><p><span style="font-family: helvetica;"><span style="font-size: small;">"Not your keys, not your Bitcoin."</span></span></p><p><span style="font-family: helvetica;"><span style="font-size: small;"><br /></span></span></p><p><span style="font-family: helvetica;"><span style="font-size: small;">This should be your mantra. Buy a cold wallet like a Trezor or Nano Ledger. Move your Bitcoin off exchanges.<br /></span></span></p><div><b><span style="font-size: 30px;"><span style="font-family: helvetica;"><span style="color: #1155cc;"><br /></span></span><br /></span></b></div><br /><div><br /></div><div><br /></div><h2 style="text-align: center;"><b><span style="font-size: x-large;">Recommendations On How Much To Buy</span></b></h2><div><br /></div><div><br /></div><div><span style="font-family: helvetica;">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.</span></div><div><span style="font-family: helvetica;"><br /></span></div><div><span style="font-family: helvetica;"><br /></span></div><div><span style="font-family: helvetica;">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. </span></div><div><br /></div><div><a href="https://twitter.com/JLMws_com"></a><div class="separator" style="clear: both; text-align: left;"><a href="https://twitter.com/JLMws_com"></a><a href="https://twitter.com/JLMws_com" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="92" data-original-width="128" height="38" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjaRwN7eSgCAcgjyDnGPRe-tFXw5uGiHsRvFkRibKxjFmOTwhc1cK4SsFZ7S9G4k_L5MHIHoxtx1i10WOGe92D5hmOZRySpp6njAKjTRRiuj73TC9aSptnE0PqVTKNJ35SgqT-UCweqGik/w53-h38/Screen+Shot+2021-02-08+at+10.18.35+AM.png" width="53" /></a><a href="https://twitter.com/JLMws_com">Follow me on Twitter</a></div></div><div><br /></div><div><br /></div><div><br /></div>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-12543374602962827932021-01-29T11:30:00.005-08:002021-01-29T13:11:53.438-08:00Which Online Financial App Do You Recommend?<p><br /></p><p><span style="background-color: white; caret-color: rgb(0, 0, 0); color: #333333; font-size: 14.85px;"><span style="font-family: arial;">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... </span></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;">This is because the mainstream retirement planning model is based on a flawed premise that goes like this:</span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><i><br /></i></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><i>Accumulate the largest balance sheet possible via market based investments and then in retirement sell off those assets to generate income.</i></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;">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.</span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 14.6667px;">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.</span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 11pt;">This retirement model is flawed because it’s not the amount of assets that is important. I repeat, </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: medium;"><b><br /></b></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: medium;"><b><br /></b></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); margin: 0in; text-align: center; text-size-adjust: auto;"><span style="font-family: arial; font-size: medium;"><b>It’s not the amount of assets that is most important</b></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 11pt;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 11pt;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 11pt;">Certainly, you need to have a solid balance sheet heading into retirement but the most important number you need to know is the <u><b>amount of income</b></u> you'll have for <b><u>all</u></b> years in retirement. </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 11pt;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 11pt;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 11pt;">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.</span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><o:p></o:p></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><o:p><span style="font-family: arial;"> </span></o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;">Let's quickly examine the idea and importance of a pension. Pensions provide a guaranteed payout for as long as you live. <span style="font-size: 11pt;">This is ultimately what people want even if they aren't willing to admit it.</span></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 11pt;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 11pt;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 11pt;">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?</span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 11pt;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><o:p></o:p></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><o:p><span style="font-family: arial;"> </span></o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;">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.<o:p></o:p></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><o:p><span style="font-family: arial;"> </span></o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;">In order to get retirement guarantees you want you have to move money into life insurance policies or annuities. <span class="Apple-converted-space"> This is becuase only life</span><span style="font-size: 11pt;"> 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. </span></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><span style="font-size: 14.6667px;">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. </span><span class="Apple-converted-space" style="font-size: 14.6667px;"> </span></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span class="Apple-converted-space" style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><o:p><span style="font-family: arial;"> </span></o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;">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!<o:p></o:p></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><span style="font-size: 14.6667px;">In nealy all cases I'm able to</span><b style="font-size: 14.6667px;"> create as much as 50% more income on a guaranteed basis</b><span style="font-size: 14.6667px;"> by utilizing life insurance and annuity strategies compared to the default withdrawal plan Wall Street recommends.</span></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 14.6667px;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 14.6667px;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 14.6667px;">Does this mean all money should move to life insurance companies? Certainly not. </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 14.6667px;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 14.6667px;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial; font-size: 14.6667px;">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. </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><o:p><span style="font-family: arial;"> </span></o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;">Here's your big takeaway: </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><h3 style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-align: left; text-size-adjust: auto;"><b><span style="font-family: arial;">How much guaranteed income do I need and how can I get it with as much efficiency as possible? </span></b></h3><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;">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.<o:p></o:p></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span class="Apple-converted-space" style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span class="Apple-converted-space" style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span class="Apple-converted-space" style="font-family: arial;">Do you need helping know your number? If so, let's talk. You can schedule time here: </span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span class="Apple-converted-space" style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span class="Apple-converted-space" style="font-family: arial;"><a href="http://www.IBC.guru">www.IBC.guru</a></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;"><br /></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><o:p><span style="font-family: arial;"> </span></o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><span style="font-family: arial;">Thank you,<o:p></o:p></span></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><o:p><span style="font-family: arial;"> </span></o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><o:p><span style="font-family: arial;"><br /></span></o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><o:p><span style="font-family: arial;">John Montoya</span></o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"><o:p><span style="font-family: arial;"><br /></span></o:p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-size: 11pt; margin: 0in; text-size-adjust: auto;"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiW67WWqrR0yAlMwr5sTnRUqjF7OUoJE3uohMb9oBbDif53txgWGuwzCqNh-8HpdZ-vLDmYpN3cxq5Es8C3RizHGFCLRZhLQsh3u6ZGbRT0VGIT7RSlvcUrzhvUnAGI3hSHCsAmUUshmR9u/s1024/SealVert_DIscnFlame-1.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="726" data-original-width="1024" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiW67WWqrR0yAlMwr5sTnRUqjF7OUoJE3uohMb9oBbDif53txgWGuwzCqNh-8HpdZ-vLDmYpN3cxq5Es8C3RizHGFCLRZhLQsh3u6ZGbRT0VGIT7RSlvcUrzhvUnAGI3hSHCsAmUUshmR9u/s320/SealVert_DIscnFlame-1.jpg" width="320" /></a></div><br /><o:p><br /></o:p><p></p><p class="MsoNormal" style="caret-color: rgb(0, 0, 0); font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in; text-size-adjust: auto;"><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimoKnCPSHdlNtDk58SB751FhCOecZt0rYB9jW8VFI3ydvEfcT7hf7Zb_ODolpnc9za5Emy_lk8dyzPZfhXiNDmZHRbzajlL1gvibOpxM_pa7j1PAps5Yu0W5Bet15Yr_naKE6w4L7vJI6T/s2048/The+Secret+To+Lifetime+Financial+Security+cover.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimoKnCPSHdlNtDk58SB751FhCOecZt0rYB9jW8VFI3ydvEfcT7hf7Zb_ODolpnc9za5Emy_lk8dyzPZfhXiNDmZHRbzajlL1gvibOpxM_pa7j1PAps5Yu0W5Bet15Yr_naKE6w4L7vJI6T/s320/The+Secret+To+Lifetime+Financial+Security+cover.jpg" /></a></div><br />JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-23092299488082772992020-12-13T13:35:00.001-08:002020-12-13T13:35:12.774-08:00IBC Dilemma: Pay Additional Premium or Re-Pay Loan<p><i> </i></p><div class="separator" style="clear: both; text-align: center;"><i><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjq6wrGa_SQDIUgIv7mKrft2Hnnv_l6O4mnZORff2AmlUiv4m3_rd-amkDXIJxABzgs7TeskgzrGz_cagHsCiJ4qsXxDqMcGYUgMcUoY0rTvIyyT6aoTX5-NiYfQXpvmKo-1glOWcMZeBsl/s1920/unicorn.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1080" data-original-width="1920" height="204" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjq6wrGa_SQDIUgIv7mKrft2Hnnv_l6O4mnZORff2AmlUiv4m3_rd-amkDXIJxABzgs7TeskgzrGz_cagHsCiJ4qsXxDqMcGYUgMcUoY0rTvIyyT6aoTX5-NiYfQXpvmKo-1glOWcMZeBsl/w475-h204/unicorn.jpg" width="475" /></a></i></div><i><br />IBC Mailbag: "John, I have a policy premium due and I'm wondering should I pay the total annual premium as scheduled or use the excess premium for the PUA rider to instead repay the loan on the policy? Please advise."</i><p></p><p><br /></p><p>Here's a fork in the road for IBC policyowners eventually arrive at whether they have one or multiple IBC policies. While there's no wrong answer here, I think creating a list of priorities helps answer the question best for your situation. Here's my take on this IBC dilemma.</p><p><br /></p><h2 style="text-align: center;">First Priority: Premium Contributions</h2><div><br /></div><p>My rule of thumb has always been to contribute the premium (Base and Paid Up Additions) first. Here's why. </p><p><br /></p><p>First and foremost, the ability to contribute premium is closed ended meaning there is a finite time to make these contributions. <i>(Note: base premium contributions - AKA the minimum premium due - must be made each year unless exercising a 12 month "premium offset" option. There is no carry-over or "catch-up" provision for the base premium. Paid Up Addition's or PUA's are optional excess premiums that may have a limited carry-over provision depending on the life insurance company. Only a few life insurance companies offer a carry-over provision from the previous years unused PUA's.)</i></p><p><br /></p><p>Also, the sooner one makes a premium payment, the better the policy is going to perform in all facets. Keep in mind that once money goes into a Whole Life policy as premium, it is guaranteed to grow from that point on. </p><p><br /></p><p>And the benefits to making premium payments go well beyond the obvious: more access cash values, more death benefit protection. </p><p><br /></p><p>Where else can you save money and then use that money elsewhere without interrupting the compounding growth? Infinite Banking Whole Life policies are a financial unicorn!</p><p><br /></p><p>If an IBC policy owner prioritizes repaying a loan before contributing premium, they are going to interrupt the compounding effect of future cash values. Money can only compound if it's first saved and considering a Whole Life contract will be held for the entirety of one's life, the lost opportunity cost of compounding cash values and future death benefit could be absolutely huge.</p><p><br /></p><p>Bill Lenderman, the late IBC practitioner and mentor to many current IBC professionals summed it up best: "You'll never be in a worse position by having access to cash." ...so pay those premiums for as long as you can!</p><p><br /></p><p><br /></p><h2 style="text-align: center;">Second Priority: Repaying Policy Loans</h2><p><br /></p><p>Loans on the otherhand are open-ended and unscheduled. I've grown fond of saying over the years: "You can repay a policy loan in 2 month, 10 years, or never at all (if using loans for income)."</p><p><br /></p><p>Policy loans, unlike bank loans, allow you to manage your cash flow to determine the best use of your cash flow. </p><p><br /></p><p>Here's another reason why you will want to prioritise repaying loans second.</p><p><br /></p><p>I remember Nelson Nash talking about unexpected windfalls. This windfall could be the result of an inheritance from a family member. A windfall could also come from a work place bonus, or the sale of an investment. The point is windfalls do happen, especially when you advance to using IBC policies loans to invest in real estate and business ventures. </p><p><br /></p><p>After receiving the windfall, then the question becomes: where do you park this windfall?</p><p><br /></p><p>If you have policy loans that are outstanding, you now have the perfect place to warehouse that money without necessarily having to start a new IBC policy. </p><p><br /></p><p>Last reason why you should prioritise repaying policy loans second and it's simple, yet crucial. </p><p><br /></p><p>Before you ever take a policy loan, you should have a plan to repay that loan. As Nelson would say: "Be an honest banker."</p><p><br /></p><p>For answers to more questions like these, please contact me at www.IBC.guru</p><p><br /></p><p>Best,</p><p><br /></p><p>John Montoya</p><p><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj4wbLUaJRe4Wkx2iuAb3-wXpn2R5lJ2MaQhiYBuLzBdLMZgX-toftjusZJgIVI7vr2OP-Q6eu2Letb56iPMW2MaUZot5DiIOTGutu9-boTMGSiWf0dnhTCGFFHyQh0R06WF0wZbG4UVNMx/s1000/IBC+Horiz-Med.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="226" data-original-width="1000" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj4wbLUaJRe4Wkx2iuAb3-wXpn2R5lJ2MaQhiYBuLzBdLMZgX-toftjusZJgIVI7vr2OP-Q6eu2Letb56iPMW2MaUZot5DiIOTGutu9-boTMGSiWf0dnhTCGFFHyQh0R06WF0wZbG4UVNMx/s320/IBC+Horiz-Med.png" width="320" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimoKnCPSHdlNtDk58SB751FhCOecZt0rYB9jW8VFI3ydvEfcT7hf7Zb_ODolpnc9za5Emy_lk8dyzPZfhXiNDmZHRbzajlL1gvibOpxM_pa7j1PAps5Yu0W5Bet15Yr_naKE6w4L7vJI6T/s2048/The+Secret+To+Lifetime+Financial+Security+cover.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimoKnCPSHdlNtDk58SB751FhCOecZt0rYB9jW8VFI3ydvEfcT7hf7Zb_ODolpnc9za5Emy_lk8dyzPZfhXiNDmZHRbzajlL1gvibOpxM_pa7j1PAps5Yu0W5Bet15Yr_naKE6w4L7vJI6T/s320/The+Secret+To+Lifetime+Financial+Security+cover.jpg" /></a></div><br /><p><br /></p><p><br /></p><p><br /></p><p><br /></p><p><br /></p>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-81125808136389022772020-11-25T13:41:00.007-08:002020-11-25T13:51:24.816-08:00Lafayette Life Rolls Out Online Payments<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEio-luov0dkKTSjP8toC-qXsrZdBiAwRat6STJur4jTA12WKFMCZMoSesuWReNs1CbMbfZvkbbE1SMCqvYwY3iEhkUNooqD3-0px2Un0pBFG_Lj9pIGuYqU49jCUfGIi2bwO7cqFHOAClhM/s583/LLIC.PNG" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="166" data-original-width="583" height="150" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEio-luov0dkKTSjP8toC-qXsrZdBiAwRat6STJur4jTA12WKFMCZMoSesuWReNs1CbMbfZvkbbE1SMCqvYwY3iEhkUNooqD3-0px2Un0pBFG_Lj9pIGuYqU49jCUfGIi2bwO7cqFHOAClhM/w525-h150/LLIC.PNG" width="525" /></a></div><br /><p><br /></p><p>Infinite Banking clients who have policies with Lafayette Life will be pleased to find out they can now make premium and loan payments online at www.LLIC.com when they login to their accounts.</p><p><br /></p><p>If you have multiple policies, you'll be able to navigate online between all Lafayette policies. This added convenience makes "becoming your own banker" aka the Infinite Banking Concept even more user-friendly. </p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-sVvS_YoesxMzfMOT-cgV49Z1sdYSZG-eucTQ-YZUsu8WcTKwmZnQwt7swPwZ7MpHFKE-lyHM0OAY8VvC2ZLkyXzE9opK5dk51-h1zOsyIIc67HhZmPakY-POT1VYHRDkMXAHCt0HgeFK/s1500/BYOBCover.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1500" data-original-width="1167" height="205" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-sVvS_YoesxMzfMOT-cgV49Z1sdYSZG-eucTQ-YZUsu8WcTKwmZnQwt7swPwZ7MpHFKE-lyHM0OAY8VvC2ZLkyXzE9opK5dk51-h1zOsyIIc67HhZmPakY-POT1VYHRDkMXAHCt0HgeFK/w160-h205/BYOBCover.jpg" width="160" /></a></div><br /><p>For those of you not yet familiar with Lafayette Life (they only work with experienced advisors so you likely won't ever see any fancy commercials), they have been a quiet leader in the IBC world since the early 2000's when Nelson Nash introduced the concept with his best selling book: <a href="https://infinitebanking.org/product/becoming-your-own-banker/" target="_blank">"Becoming Your Own Banker"</a>. They were the first mutual life insurance company that really embraced the strategy whereas other mutual companies initially shied away from advocating IBC.</p><p><br /></p><p>The reasons were simple. </p><p><br /></p><p>There was unknown risk with encouraging policy holders to actively take loans with unscheduled loan payments. Would policy holders be "honest bankers" as Nelson preached in his book? Life insurance companies don't like taking risks but almost 20 years later, experience has shown policy holders to be both diligent and forthright borrowers to their policy loans.</p><p><br /></p><p>Life insurance companies were also concerned about promoting a strategy "with the lowest death benefit" to their advisor/agent salesforce that encouraged them to take 60-80% reduction in pay with every policy sold. Imagine your boss coming to you with a plan that would cut your pay in half and see how well that would go over...</p><p><br /></p><p>Lafayette embraced both concerns head on and the results have seen their once tiny life insurance division outgrow their former headquarters in Lafayette, Indiana to where they reside now in downtown Cincinnati, Ohio. </p><p><br /></p><p>I had the pleasure of touring their HQ almost 5 years ago and was amazed by the efficiency of their operations. You'd never guess the size of the company when you walk into their high rise building down by the Cincinnati riverfront. </p><p><br /></p><p>Lafayette Life has remained one of my top choices for Infinite Banking for a number of reasons. Their Whole Life products are amongst the most innovative and flexible in the industry. In fact, their competition has borrowed quite a bit from their product design over the years.</p><p><br /></p><p>My favorite reason though for working with Lafayette Life is their accessability to friendly and helpful associates all the way up to executive management. If I ask for anything, they are always willing to get on the phone and make my life as an advisor easier. Of all the companies I've ever done business with, I have to give them the highest marks in the industry for customer service. </p><p><br /></p><p>And now with online payments life gets even easier for me and my clients who practice Infinite Banking.</p><p><br /></p><p>If you have questions about Infinite Banking or would like more information about Lafayette Life as a choice for your next IBC policy, let me know. You can always find time to connect with me here: </p><p><a href="http://www.IBC.guru" target="_blank">www.IBC.guru</a></p><p><br /></p><p>Thank you,</p><p><br /></p><p>John Montoya</p><p><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhLX_B-A2nAUA7k5w0xzR__WWtHVJIfBekcwBt2f6NlAqzY_NJgWocmT4ywAxuwqahOqfH96SInMswpMfqgTJ2xes-ohhyjr3Kz91-U1bRNe1ZeOzBI_kXtWEhbjDEynliQsczHZwwquKQj/s1000/IBC+Horiz-Med.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="226" data-original-width="1000" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhLX_B-A2nAUA7k5w0xzR__WWtHVJIfBekcwBt2f6NlAqzY_NJgWocmT4ywAxuwqahOqfH96SInMswpMfqgTJ2xes-ohhyjr3Kz91-U1bRNe1ZeOzBI_kXtWEhbjDEynliQsczHZwwquKQj/s320/IBC+Horiz-Med.png" width="320" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwn9RVgY1LkwgVuanfraAUJql0KcGvNNZXwMBsQhotpEFMBAUf8SUyLIV3cPhXaBHqHvW_MSiKUS0yaAtCoDFg_w-yZeYYhKqZfbHoSTt_tyLrMpnZ-mVvKrde-8DTlksEYyG7RYu32UAg/s2048/The+Secret+To+Lifetime+Financial+Security+cover.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwn9RVgY1LkwgVuanfraAUJql0KcGvNNZXwMBsQhotpEFMBAUf8SUyLIV3cPhXaBHqHvW_MSiKUS0yaAtCoDFg_w-yZeYYhKqZfbHoSTt_tyLrMpnZ-mVvKrde-8DTlksEYyG7RYu32UAg/s320/The+Secret+To+Lifetime+Financial+Security+cover.jpg" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><p><br /></p><p><br /></p>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-45431166180425287512020-10-17T09:08:00.058-07:002020-10-17T09:08:00.168-07:004 Places For Money and Their Tax Consequences<p> </p>
<p class="MsoNormal"></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8g8tWY0DIxiHfwT4x6Lu4LpdFPSTraf0102teFDq9zY_auHaBwxHUvpDVyayhzA5PTSkHVVUr2zmzAEhq9Pd0kVfZ-3VQELGYylbAAXMdRTnfrTfnT0aX-boOgRxE9YW4oB5ZjbdCUapA/s1308/4+Places+For+Money-Tax+Consequences.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="433" data-original-width="1308" height="216" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8g8tWY0DIxiHfwT4x6Lu4LpdFPSTraf0102teFDq9zY_auHaBwxHUvpDVyayhzA5PTSkHVVUr2zmzAEhq9Pd0kVfZ-3VQELGYylbAAXMdRTnfrTfnT0aX-boOgRxE9YW4oB5ZjbdCUapA/w654-h216/4+Places+For+Money-Tax+Consequences.PNG" width="654" /></a></div><p class="MsoNormal"><br /></p><p class="MsoNormal">In general, there are 4 places where money (assets) can be kept. I'm going to leave out precious metals and cryptocurrency since the majority of people don't hold these assets, or if they do, it's an extremely small part of their net worth.</p><p class="MsoNormal"><br /></p><p class="MsoNormal">The most popular places people build wealth are:</p><p class="MsoNormal"><br /></p><p class="MsoNormal">Banks, Wall Street, Government (401k, IRA's), Life Insurance companies, and Real Estate so let's stick with these for the purposes of this discussion.</p><p class="MsoNormal"><br /></p>The 401k is under Uncle Sam’s control even when rolled over
into an IRA. Both are considered Qualified Retirement Accounts (QRP) --- that is, qualified with the government. Rollovers (401k to IRA or IRA to IRA) don’t create a taxable event but
eventually the government forces liquidations of these accounts thru Required
Minimum Distributions at age 72. <p></p><p class="MsoNormal"><br /></p><p class="MsoNormal">At the time of death,
beneficiaries of 401k/IRA must withdraw all assets from an inherited IRA within
10 years following the death of the account holder according to the SECURE Act in December 2019.</p><p class="MsoNormal"><br /></p><p class="MsoNormal"><i>Note: I recommend looking at solutions that will help transition the account balance in an IRA
rollover account to life insurance policies on your kids – or perhaps yourself if you might still
be insurable - in order lower their future tax bill and also to create a multigenerational
transfer of wealth.</i><o:p></o:p></p><p class="MsoNormal"><i><br /></i></p><p class="MsoNormal">Here's something to considering if you plan on doing a rollover from a 401k to an IRA (or IRA to IRA) to purchase an annuity:</p><p class="MsoNormal"><br /></p><p class="MsoNormal">With an annuity, the account balance equals the death benefit. I mention this because the term death benefit in an annuity sometimes creates confusion for the public. Since an annuity is a contract with a life insurance company, the account balance upon on death is technically called a death benefit but there is no increase in the account value upon on passing like with a life insurance policy where cash values mushrooms and instantly becomes a much larger death benefit at the time of passing. (For example, a Whole Life policy pays a death benefit substantially larger than the cash value.) </p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">The life insurance death benefit does get included in your
overall estate unless it’s in an Irrevocable Life Insurance Trust (ILIT) but the death benefit is income tax-free which makes it a superior distribution and transfer vehicle for beneficiaries.
A discussion on ILIT's will be important if your overall estate will in time exceed estate tax exemption. In 2020, the estate tax exemption is $11.58 million for a single person. Multiple this exemption by 2 for married couples.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><i>Note: If you've had a spouse that has passed, it's important for your advisor to know if you file IRS Form 706 at the
time of his death to make an election to add his unused estate tax exemption to
yours.</i><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Let me know if this helps or if you have questions about your situation. Here's my calendar to request a consultation: <a href="http://www.IBC.guru">www.IBC.guru</a></p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thank you,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">John Montoya<o:p></o:p></p><p class="MsoNormal"><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj4wbLUaJRe4Wkx2iuAb3-wXpn2R5lJ2MaQhiYBuLzBdLMZgX-toftjusZJgIVI7vr2OP-Q6eu2Letb56iPMW2MaUZot5DiIOTGutu9-boTMGSiWf0dnhTCGFFHyQh0R06WF0wZbG4UVNMx/s1000/IBC+Horiz-Med.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="226" data-original-width="1000" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj4wbLUaJRe4Wkx2iuAb3-wXpn2R5lJ2MaQhiYBuLzBdLMZgX-toftjusZJgIVI7vr2OP-Q6eu2Letb56iPMW2MaUZot5DiIOTGutu9-boTMGSiWf0dnhTCGFFHyQh0R06WF0wZbG4UVNMx/s320/IBC+Horiz-Med.png" width="320" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwn9RVgY1LkwgVuanfraAUJql0KcGvNNZXwMBsQhotpEFMBAUf8SUyLIV3cPhXaBHqHvW_MSiKUS0yaAtCoDFg_w-yZeYYhKqZfbHoSTt_tyLrMpnZ-mVvKrde-8DTlksEYyG7RYu32UAg/s2048/The+Secret+To+Lifetime+Financial+Security+cover.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwn9RVgY1LkwgVuanfraAUJql0KcGvNNZXwMBsQhotpEFMBAUf8SUyLIV3cPhXaBHqHvW_MSiKUS0yaAtCoDFg_w-yZeYYhKqZfbHoSTt_tyLrMpnZ-mVvKrde-8DTlksEYyG7RYu32UAg/s320/The+Secret+To+Lifetime+Financial+Security+cover.jpg" /></a></div><br /><p class="MsoNormal"><br /></p><br />JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-31266714849853505832020-10-13T11:37:00.003-07:002020-10-13T11:44:26.632-07:00IBC Q&A Mailbag: The Power of Zero (Review)<p><i>The following is an email exchange with an existing client:</i></p><p><i><br /></i></p><p class="MsoNormal">Hi John,</p><p class="MsoNormal"><br /></p><p class="MsoNormal">I have read the Power of Zero book by Dave McKnight, along with listening to many of his podcasts. I seem to resonate with his approach to matters. Have you read, and are you a fan of his approach to things also?</p><p class="MsoNormal"><o:p></o:p></p><p class="MsoNormal"><o:p> </o:p></p><p class="MsoNormal">Thanks. </p><p class="MsoNormal"><br /></p><p class="MsoNormal"><i>My reply:</i></p><p class="MsoNormal">I am familiar the book and movie. The director, Doug
Orchard, actually produced and directed two of the videos on my website. </p><p class="MsoNormal">(The 2 videos are at top of the page here: <a href="https://jlmwealthstrategies.com/videos/">https://jlmwealthstrategies.com/videos/</a>)<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I like the Power of Zero strategy with regards to how it
applies to indexed annuities. I do have a difference of opinion as it
applies to IUL’s because of the increasing cost of insurance within
those policies. I don’t believe the industry does a very good job of
disclosing the risks with IUL’s. The only mention of risk to a prospective buyer seems to be
that money can’t be lost if the market goes down. This is a half-truth at best.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">There are actual risk esposures IUL's have but they are usually never mentioned. The cost of insurance in an IUL increases every year by a larger amount which poses a major problem
during retirement years. IUL are sold on the idea that the returns will be there, and while it is
possible they could be, but it’s also possible they won’t. Then what?<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">For this reason, I would only recommend an IUL for two sets of people:</p><p class="MsoNormal"><br /></p><p class="MsoNormal">1) High net
worth clients who can commit a minimum $20k a year while still maintaining
diversified portfolio of other assets AND life insurance policies. </p><p class="MsoNormal">2) Parents living with diabetes who cannot otherwise qualify for a permanent cash value policy. There is an IUL only program specifically designed for those with diabetes, currently unavailable with Whole Life.</p><p class="MsoNormal"><br /></p><p class="MsoNormal">Outside of these two demographics of people, I wouldn't recommend an IUL because I see too many
buyers of IUL putting the majority of resources into one IUL plan and
little elsewhere. It’s a recipe for disaster because here's what I know as an experienced advisor what go wrong with an IUL:</p><p class="MsoNormal"><br /></p><h2 style="text-align: left;">Here are 5 Perils of an IUL</h2><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">1. The IUL cost of insurance is based on annual increasing one
year renewable term. Cheap when young, cost prohibitive once a person
hits retirement.<o:p></o:p></p><p class="MsoNormal"><br /></p>
<p class="MsoNormal">2. Returns could be below illustrated. The increasing cost of
insurance will only erode returns further. <o:p></o:p></p><p class="MsoNormal"><br /></p>
<p class="MsoNormal">3. Planned premium funding falls off because life happens. Examples include layoffs, an extra kid (or two!), unplanned college expenses, failing health, divorce, lack of financial discipline... even pandemics! Life does happen and failing to maximize the policy contributions of an IUL has an adverse effect
on the returns of the policy because less premium means less cash value potentially earning interest to offset internal increasing costs of the life insurance. </p><p class="MsoNormal"><br /></p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal">4. IUL’s never endow. </p><p class="MsoNormal"><br /></p><p class="MsoNormal">Only Whole Life policies can endow----
this means the cash value is guaranteed to equal the death benefit by age
121. The current cash value in a Whole Life policy is actually the present value of the future
death benefit. This is hard to grasp at first but it’s very
powerful. </p><p class="MsoNormal"><br /></p><p class="MsoNormal">Essentially, a Whole Life policy is reverse-engineered from age
121 with fixed premiums and a minimum guaranteed growth rate completely uncorrelated to the market or economy. What this means is that <b><i>what you want to happen,</i></b> <b><i>will happen. </i></b>A Whole Life policy provides a blueprint guaranteeing policy owners that
their policies will eventually grow to equal the death benefit—even if their not
around to see it. </p><p class="MsoNormal"><br /></p><p class="MsoNormal">Furthermore, the PUA rider in an Infinite Banking designed Whole Life policies speed up the
process by turbo-charging the cash values AND death benefit at no future cost. In comparison, IUL is a side savings account based on positive market returns
combined with the rising cost of a one year term policy. While it’s nice IUL’s have the potential for 1-2% higher average returns than Whole Life, returns are dragged down by the rising cost of insurance over time, the unpredictability nature of market returns, and lack of discipline to stick to the planned premium when life events invariably happen.)<o:p></o:p></p><p class="MsoNormal"><br /></p><p class="MsoNormal">Underfunded and/or poor performing IUL policies should not be the foundational basis of a financial plan because IUL's have no guarantee of performance. Just a guarantee of zero AND a guarantee of increasing life insurance costs. As you can guess, I like building a financial plan with growth guaranteed each year and guaranteed fixed premiums that combined create financial certainties... hence Infinite Banking designed Whole Life.</p><p class="MsoNormal"><br /></p>
<p class="MsoNormal">5. Taking income from an IUL during years of low and no return makes the
cash value disappear even faster, especially so when the cost of insurance is
rising exponentially after age 65. It's the triple whammy that can't be avoided: no return, loans coming out, exponentially rising cost of insurance. (This perfect storm of risk is even more pronounced in Variable Universal Life (VUL) policies). </p><p class="MsoNormal"><br /></p><p class="MsoNormal">For this reason, I mention an IUL is not suituable for middle class income earners because they won't have a fallback plan if the majority of their eggs are in this one basket. There’s just too many perils for middle class clientele to
navigate to make it their main strategy. </p><p class="MsoNormal"><br /></p><p class="MsoNormal">Unfortunately, there is an army of inexperienced life agents and advisors touting an IUL as the best thing since slice bread, and worse yet, people show me their IUL plans that have been designed the wrong way because there is too much death benefit (which means higher commissions for the advisor and an increased likelihood of that IUL to fall short of expectations).</p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">All this said, The Power of Zero with Indexed Annuities is an excellent way
to go because there is no life insurance mortality costs to eat away at the
returns and many indexed annuities can be purchased with no annual fees or if choosing an indexed annuity for income purposes, a guaranteed lifetime income rider that averages 1% per year which is an extremely low cost for the peace of mind knowing you'll always have an income.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">My thoughts are if people really want "The Power of Zero" without any true downside risk (no market risk AND no rising mortality costs), then combine IBC designed Whole Life policies with
uncapped Indexed Annuities. You get the best of both worlds (upside growth and the IBC banking strategy) without
taking any unnecessary risk.<o:p></o:p></p><p class="MsoNormal"><br /></p><p class="MsoNormal">And one more thing, remember that if you're doing Infinite Banking right, you will have more than one IBC designed Whole Life policy. </p><p class="MsoNormal"><br /></p>
<p class="MsoNormal">We can discuss further if you like by scheduling time on my calendar here:<o:p></o:p></p><p class="MsoNormal"><br /></p><p class="MsoNormal"><a href="http://www.IBC.guru">www.IBC.guru</a></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Thank you,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">John Montoya</p><p class="MsoNormal"><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj4wbLUaJRe4Wkx2iuAb3-wXpn2R5lJ2MaQhiYBuLzBdLMZgX-toftjusZJgIVI7vr2OP-Q6eu2Letb56iPMW2MaUZot5DiIOTGutu9-boTMGSiWf0dnhTCGFFHyQh0R06WF0wZbG4UVNMx/s1000/IBC+Horiz-Med.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="226" data-original-width="1000" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj4wbLUaJRe4Wkx2iuAb3-wXpn2R5lJ2MaQhiYBuLzBdLMZgX-toftjusZJgIVI7vr2OP-Q6eu2Letb56iPMW2MaUZot5DiIOTGutu9-boTMGSiWf0dnhTCGFFHyQh0R06WF0wZbG4UVNMx/s320/IBC+Horiz-Med.png" width="320" /></a></div><div class="separator" style="clear: both; text-align: center;"><br /></div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwn9RVgY1LkwgVuanfraAUJql0KcGvNNZXwMBsQhotpEFMBAUf8SUyLIV3cPhXaBHqHvW_MSiKUS0yaAtCoDFg_w-yZeYYhKqZfbHoSTt_tyLrMpnZ-mVvKrde-8DTlksEYyG7RYu32UAg/s2048/The+Secret+To+Lifetime+Financial+Security+cover.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwn9RVgY1LkwgVuanfraAUJql0KcGvNNZXwMBsQhotpEFMBAUf8SUyLIV3cPhXaBHqHvW_MSiKUS0yaAtCoDFg_w-yZeYYhKqZfbHoSTt_tyLrMpnZ-mVvKrde-8DTlksEYyG7RYu32UAg/s320/The+Secret+To+Lifetime+Financial+Security+cover.jpg" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><br /></div><br /><p class="MsoNormal"><br /></p>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-25329878378801736782020-10-06T09:09:00.000-07:002020-10-06T09:09:23.587-07:003 Things To Consider When You Delay Getting Started With IBC<p> </p><p class="MsoNormal">It's possible you’ve been looking into Infinite
Banking for a few months or even a few years now and perhaps you've yet to get started. Sometimes the hardest thing is taking a leap
of faith when doing something for the first time. A few things to go
consider:<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<ol start="1" style="margin-top: 0in;" type="1">
<li class="MsoListParagraph" style="margin-left: 0in; mso-list: l0 level1 lfo1;"><span style="mso-fareast-font-family: "Times New Roman";">We don’t get any younger
and our current health is never guaranteed.<o:p></o:p></span></li>
<li class="MsoListParagraph" style="margin-left: 0in; mso-list: l0 level1 lfo1;"><span style="mso-fareast-font-family: "Times New Roman";">This is a guaranteed
contract. It’ll grow every year without any luck, skill, or guess
work… and it gives you tax-free access to cash values via policy loans for
any reason without interrupting the growth.<o:p></o:p></span></li>
<li class="MsoListParagraph" style="margin-left: 0in; mso-list: l0 level1 lfo1;"><span style="mso-fareast-font-family: "Times New Roman";">If you have a family to
protect, there is no better option for your “safe money”.<o:p></o:p></span></li>
</ol>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Check out my podcast if you’d like to continue to learn at
your pace: <a href="http://www.TheFifthEdition.com" target="_blank">www.TheFifthEdition.com</a><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Calendar: <a href="www.IBC.guru" target="_blank">I’ll be here when you are ready</a>. </p><p class="MsoNormal"><br /></p><p class="MsoNormal">Just keep in mind
point #1 above and remember this: </p><p class="MsoNormal"><br /></p><h2 style="text-align: left;"><b>Time is the one thing we don't get back. </b> </h2><p class="MsoNormal"><br /></p><p class="MsoNormal">Until this is taken care of, there are no guarantees
except, of course, death and taxes. </p><p class="MsoNormal"><o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Cheers,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">John<o:p></o:p></p><p class="MsoNormal"><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmLd6XNkSo56XKntebn_VKIo_aFtLutMrQORSmI2fgR2SWX9ybuVQfdyKryKAO2bHccC51WrA4FwQh2sqgAQl4RgEn11sAp-XJPWE0a39KcvHHn49l45Q-LLxcsFvE5jlhBT7P_8zFI_fP/s1024/SealVert_DIscnFlame-1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="726" data-original-width="1024" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjmLd6XNkSo56XKntebn_VKIo_aFtLutMrQORSmI2fgR2SWX9ybuVQfdyKryKAO2bHccC51WrA4FwQh2sqgAQl4RgEn11sAp-XJPWE0a39KcvHHn49l45Q-LLxcsFvE5jlhBT7P_8zFI_fP/s320/SealVert_DIscnFlame-1.jpg" width="320" /></a></div><br /><p class="MsoNormal"><br /></p>
<p class="MsoNormal"><o:p> </o:p></p>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0tag:blogger.com,1999:blog-7158346798573363380.post-57173132116753134712020-09-25T12:00:00.004-07:002020-09-25T12:27:45.057-07:00Five Reasons To Borrow From a Whole Life Policy instead of a Bank<div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEid55FJ4CIaUZJY0Cls4S4tFIpdQ5lW-g6SMw6-WjjPbb9nE7Xiw8xmqhF2MJA7RPjFPGJGtdoQOAc-FebEuxKXs6XrwgW24lDJrD_nC4QBIUOEyp3q_GWIPKQ1qGjCQJpOTXS-lkqURzOC/s2048/Using+Life+Insurance+As+A+Line+Of+Credit-Capture.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="1154" data-original-width="2048" height="246" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEid55FJ4CIaUZJY0Cls4S4tFIpdQ5lW-g6SMw6-WjjPbb9nE7Xiw8xmqhF2MJA7RPjFPGJGtdoQOAc-FebEuxKXs6XrwgW24lDJrD_nC4QBIUOEyp3q_GWIPKQ1qGjCQJpOTXS-lkqURzOC/w436-h246/Using+Life+Insurance+As+A+Line+Of+Credit-Capture.PNG" width="436" /></a></div><br /><span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;"><br /></span></div><span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;"><div><span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;"><br /></span></div><div><span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;"><br /></span></div>Here are 5 of the best reasons to borrow from the insurance company against your Whole Life policy versus borrowing from a bank: </span><div><br />
<span face="Verdana, sans-serif"><br style="background-color: white; line-height: 15px;" /></span>
<span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;">* No application process. I ask for the money and I get it. I don't have to qualify...ever! </span></div><div><br />
<span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;"><br /></span>
<span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;">* 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. </span></div><div><br />
<span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;"><br /></span><span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;">* Another huge</span><span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;"> reason for borrowing against your life insurance policy is the flexibility of the repayment plan.</span><span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;"> 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. </span></div><div><br />
<span face="Verdana, sans-serif"><br style="background-color: white; line-height: 15px;" /></span></div><div>
<span style="background-color: white; line-height: 15px;"><span face="Verdana, sans-serif"><br /></span></span>
<span style="background-color: white; line-height: 15px;"><span face="Verdana, sans-serif">* 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!</span></span></div><div><br /><div><br /></div><div>* 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".</div><div><br /></div><div><br /></div><div>Albert Einstein is noted for saying:</div><div><br /></div><div><span face="GMsanC-Regular, Helvetica, Arial, Verdana, sans-serif" style="background-color: white; color: #595959; letter-spacing: 0.3px;"><i>"Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it."</i></span><br />
<br />
<span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;"><br /></span></div><div><span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;">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. </span></div><div><br /><div><br /></div><div>Let me know what questions you have about Infinite Banking. You can find me here: <a href="http://www.IBC.guru">www.IBC.guru</a></div><div><br /></div><div>You can also hear me talk about Infinite Banking on my podcast here: <a href="http://www.TheFifthEdition.com">www.TheFifthEdition.com</a><br />
<span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;"><br /></span>
<span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;"><br /></span></div><div><span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;">Thank you,</span></div><div><span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;"><br /></span></div><div><span face="Verdana, sans-serif" style="background-color: white; font-size: 13px; line-height: 15px;"><br /></span></div><div><span face="Verdana, sans-serif" style="background-color: white; line-height: 15px;">John Montoya</span></div><div><span face="Verdana, sans-serif" style="background-color: white; font-size: 13px; line-height: 15px;"><br /></span></div><div><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoFJ0bwRIlDQSnprU9B4vvZu4TUOlsD-CFkvqrl4LdsQq487GX8gyXEirSZHarjm8IbZ-hjo0ZLczGSdioMXpeu2TOsQc0KPlYz4M4uwmFcvph1OG5kZ6_yvZ-ho8cY6Eh3U02NEkk95En/s1000/IBC+Horiz-Med.png" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="226" data-original-width="1000" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgoFJ0bwRIlDQSnprU9B4vvZu4TUOlsD-CFkvqrl4LdsQq487GX8gyXEirSZHarjm8IbZ-hjo0ZLczGSdioMXpeu2TOsQc0KPlYz4M4uwmFcvph1OG5kZ6_yvZ-ho8cY6Eh3U02NEkk95En/s320/IBC+Horiz-Med.png" width="320" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimoKnCPSHdlNtDk58SB751FhCOecZt0rYB9jW8VFI3ydvEfcT7hf7Zb_ODolpnc9za5Emy_lk8dyzPZfhXiNDmZHRbzajlL1gvibOpxM_pa7j1PAps5Yu0W5Bet15Yr_naKE6w4L7vJI6T/s2048/The+Secret+To+Lifetime+Financial+Security+cover.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="2048" data-original-width="1365" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEimoKnCPSHdlNtDk58SB751FhCOecZt0rYB9jW8VFI3ydvEfcT7hf7Zb_ODolpnc9za5Emy_lk8dyzPZfhXiNDmZHRbzajlL1gvibOpxM_pa7j1PAps5Yu0W5Bet15Yr_naKE6w4L7vJI6T/s320/The+Secret+To+Lifetime+Financial+Security+cover.jpg" /></a></div><br /><span face="Verdana, sans-serif" style="background-color: white; font-size: 13px; line-height: 15px;"><br /></span></div></div></div>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com1tag:blogger.com,1999:blog-7158346798573363380.post-88585158530874164722020-09-22T16:45:00.004-07:002020-09-22T16:45:35.382-07:00Infinite Banking IUL<p> If there ever were two things that don't go together it's "Infinite Banking" and "IUL".</p><p><br /></p><p>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".</p><p><br /></p><p>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.</p><p><br /></p><p>The Nelson Nash Institute is the only place on the internet where you can find an Infinite Banking Authorized Practitioner. Here's the link: </p><p><br /></p><p><a href="https://infinitebanking.org/finder/">https://infinitebanking.org/finder/</a></p><p><br /></p><p>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).</p><p><br /></p><p>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.</p><p><br /></p><p>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. </p><p><br /></p><p>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.</p><p><br /></p><p>You'll find me here: <a href="http://www.IBC.guru"></a></p><div class="separator" style="clear: both; text-align: center;"><a href="http://www.IBC.guru"><br /></a></div><a href="http://www.IBC.guru"><br />www.IBC.guru</a><p></p><p><br /></p><p>Thank you,</p><p><br /></p><p>John Montoya</p><p><br /></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiW67WWqrR0yAlMwr5sTnRUqjF7OUoJE3uohMb9oBbDif53txgWGuwzCqNh-8HpdZ-vLDmYpN3cxq5Es8C3RizHGFCLRZhLQsh3u6ZGbRT0VGIT7RSlvcUrzhvUnAGI3hSHCsAmUUshmR9u/s1024/SealVert_DIscnFlame-1.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="726" data-original-width="1024" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiW67WWqrR0yAlMwr5sTnRUqjF7OUoJE3uohMb9oBbDif53txgWGuwzCqNh-8HpdZ-vLDmYpN3cxq5Es8C3RizHGFCLRZhLQsh3u6ZGbRT0VGIT7RSlvcUrzhvUnAGI3hSHCsAmUUshmR9u/s320/SealVert_DIscnFlame-1.jpg" width="320" /></a></div><br /><p><br /></p><p><br /></p><p><br /></p><p><br /></p>JLM Wealth Strategieshttp://www.blogger.com/profile/16657045744106853250noreply@blogger.com0