Never over leverage your cash flow. Plan plan plan again. Try to clear out the debt every 4 to 6 months. Then make fresh chunk don't over chunk you access to cashflow.
Good info! Isn’t there typically a 25-30 day Grace period for interest to accrue on a CC purchase, so the immediate payment after a CC purchase wouldn’t be necessary?
No, these policies are simple interest. There is no scheduled term and due date. You can pay interest only and then pay the principal on a flexible schedule or all at once.
When making the payment you will need to specify how you want the payment allocated. Your goal should never be to not payback your loan. Though you are not required to pay any principal on any schedule, if you are practicing Infinite Banking then part of the banking cycle is repayment of debt. The death benefit can resolve any unpaid balance but keep in mind the portion can become taxable if paid by the death benefit.
Thank you @Jesus-kt5dc! I'll try to bring more energy. My channel is dragging because I create content on different topics versus just one topic and because I really need to create more videos more consistently. You comment is encouraging and a positive critique as well. Blessing to you!
Amazing content! 23 year old here trying to purchase my first home, the question i have is am i able to use a 1st lien heloc loan to make the purchase of a home? And also how would it work if i have a 742 credit score but only 5 years of credit history?
You should be ok to qualify as long as you have enough income. Please schedule us to speak privately for a complimentary 15 minute clarity call. calendly.com/sebastienboyer/infinitevelocity-support
A regular mortgage in most cases is based on a 30 year amortized schedule. A first lien HELOC is not amortized. In both cases if you default the reprocussion would be the same except in a first lien you could access your equity to help you cover payments until you recovered. In a mortgage you’re out of luck. I have several videos interviewing the banks that offer First Lien. I urge you to take a closer look. It’s not for everyone if you don’t have cashflow to make the most of it or any good use for the equity.
Heloc has no guaranteed rates for the life of the loan. Whether heloc or amort loan your payment is based on your balance. If you can't maintain a balance on a heloc that's lower than the amort balance would be them you are in trouble. Because heloc loans have higher interest rates. So you'd be paying higher monthly payments on the same balance. Generally this only works with high positive cashflow.
Hello. New viewer here. So If I’m understanding this correctly: If I had an outstanding loan against my policy, It would be most efficient to pay that loan back by using a PLOC/HELOC via chunking?
@@theapprovedguy Yes. I’m just confused on how to use them together- what that process would be to create “infinite velocity” to be as efficient as possible with my dollars when making purchases, etc
So if I have a 1 mil death benefit and I borrow $900k and die, my beneficiaries would be responsible for the tax on that $900k? I think I must be missing something.
There is conflicting information on this... According to an article on www.kitces.com/blog/life-insurance-loan-taxation-rules-at-death-or-lapse "From the tax perspective, though, the repayment of a life insurance policy loan from the death benefit of the policy is tax-free, because the payment of a death benefit itself (by reason of the death of the insured) is tax-free in the first place. In other words, to the extent that a life insurance loan is simply a personal loan with the insurance company that is repaid from the death benefit proceeds, the policy loan repayment is as “not taxable” as any loan repayment is, and the tax-free life insurance death benefit remains tax free."
Hi @chrisvolk106 I’m not clear on your question or statement. When you die you are leaving behind a death benefit, not cash value. If you have an open policy loan it is settled from the death benefit before disbursement.
Thanks for your comment @HazeltineLLC that's a great question. I think it's because of lack of knowledge, confusing messaging by agents and advisors more focused on making large commissions, and once you can get passed all of that; fear. Many people take no action out of fear.
Either method is generally too complicated and related to math for many people to get this concept. The combination of both methods is beyond comprehension for most people.
This was VERY insightful, I’d never heard of “infinite velocity”, bit it seems I’m using a hybrid version of that, I also utilize a hybrid version of infinite banking (knew what that was), unfortunately the life insurance part wasn’t viable for me or most working class people as you either have to wait years or decades to deploy it or have cash up front (opportunity costs being too high in this market) so I’ve been building up using my savings account and the same principals, which allows me to focus on getting as much as possible into the markets. Once the pool is up high enough the goal is to transition into the “real” infinite banking to get the added policy protection add tax haven. Thanks for this insightful video! -Reckless Ray Dinero 🐺
Hi @RecklessRayDinero I would love to talk through this with you. Please book us for a call…. calendly.com/sebastienboyer/whole-life-insurance-saving-strategy-clarity-call
Ahh I get it. This guy is selling whole life insurance products. That's why he wants us to call him directly. This comment will probably be deleted. I had one of those many years ago and sold it early, losing some money. I realized that the only way I would benefit from a whole life policy is by dying. I now have just been saving money and have a decent amount of savings now.
I'm sorry to hear that you purchased a policy that you aren't happy with, but assuming all life agents and whole insurance products are the same is like eating at an Italian restaurant and getting food poisoning and then saying you'll never eat at any Italian restaurant again. I am a licensed life insurance agent and I take pride in designing policies that benefit my clients and I take huge cuts in commissions compared to most agents that sell high premiums with very little cash value (probably what you were sold). Most agents selling life insurance either don't know what they don't know or they are intentionally trying to sell for max commissions and so are not providing the best solutions for their clients. If you setup a policy with a participating mutual company that pays dividends on the cash value and the agent does the right thing for you, not their pockets, the policy can literally provide you with a cash savings space called PUA where 75-90% of your premium can go into the savings space. With guarantee growth + dividends, your money will multiply and grow year over year. There is a guarantee on this as long as you fund it appropriately. You also have a death benefit with living benefits and you can leverage your cash value through policy loans to invest in whatever you want without interrupting the growth inside the policy. Please check out the books: What Would The Rockefeller's Do? by Garret B. Gunderson and Become Your Own Banker by R. Nelson Nash
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Great info thank u
Thanks, do appreciate taking your time to explain in detail. Very well explained.
God Bless🙏
Glad it was helpful.
Never over leverage your cash flow. Plan plan plan again. Try to clear out the debt every 4 to 6 months. Then make fresh chunk don't over chunk you access to cashflow.
I really appreciate your knowledge. This is real financial education!
Thank you for your video.. this really helped
Glad it helped
Thanks for the clear steps! How often do you audit your cash flow?
Could you do a video on the subject of currency standard protection .?
Yes - please explain how your whole life insurance cash value is protected from a change in the currency standard.
Good info! Isn’t there typically a 25-30 day Grace period for interest to accrue on a CC purchase, so the immediate payment after a CC purchase wouldn’t be necessary?
Yes you can pay once a month before the due date, but just to avoid any mishaps I like to knock it out the same day.
Using a whole life insurance policy loan, who sets the loan interest rate? Isn’t the loan on a amortized schedule?
No, these policies are simple interest. There is no scheduled term and due date. You can pay interest only and then pay the principal on a flexible schedule or all at once.
The loan interest rate is preset by the insurance carrier.
When making the payment you will need to specify how you want the payment allocated. Your goal should never be to not payback your loan. Though you are not required to pay any principal on any schedule, if you are practicing Infinite Banking then part of the banking cycle is repayment of debt. The death benefit can resolve any unpaid balance but keep in mind the portion can become taxable if paid by the death benefit.
You're welcome @Jesus-kt5dc! It's important to be aware of these details so you and you beneficiaries are not blind sided.
Thank you @Jesus-kt5dc! I'll try to bring more energy. My channel is dragging because I create content on different topics versus just one topic and because I really need to create more videos more consistently. You comment is encouraging and a positive critique as well. Blessing to you!
Amazing content! 23 year old here trying to purchase my first home, the question i have is am i able to use a 1st lien heloc loan to make the purchase of a home? And also how would it work if i have a 742 credit score but only 5 years of credit history?
You should be ok to qualify as long as you have enough income. Please schedule us to speak privately for a complimentary 15 minute clarity call. calendly.com/sebastienboyer/infinitevelocity-support
Why does a first lien heloc sound more dangerous than a mortgage and second lien heloc? Meaning what if there is an income loss, job loss, etc
A regular mortgage in most cases is based on a 30 year amortized schedule. A first lien HELOC is not amortized. In both cases if you default the reprocussion would be the same except in a first lien you could access your equity to help you cover payments until you recovered. In a mortgage you’re out of luck. I have several videos interviewing the banks that offer First Lien. I urge you to take a closer look. It’s not for everyone if you don’t have cashflow to make the most of it or any good use for the equity.
Heloc has no guaranteed rates for the life of the loan. Whether heloc or amort loan your payment is based on your balance. If you can't maintain a balance on a heloc that's lower than the amort balance would be them you are in trouble. Because heloc loans have higher interest rates. So you'd be paying higher monthly payments on the same balance. Generally this only works with high positive cashflow.
A first position could actually save your behind because as long as you cover the INTEREST you won’t default…
Hello. New viewer here. So If I’m understanding this correctly: If I had an outstanding loan against my policy, It would be most efficient to pay that loan back by using a PLOC/HELOC via chunking?
Hi @ptc3619 Thank you for commenting! Great question. The answer is maybe. I would have know a lot more info. Please schedule a call to discuss….
@@theapprovedguy Yes. I’m just confused on how to use them together- what that process would be to create “infinite velocity” to be as efficient as possible with my dollars when making purchases, etc
Hi @ptc3619 Schedule a free call here calendly.com/sebastienboyer/whole-life-insurance-saving-strategy-clarity-call
So if I have a 1 mil death benefit and I borrow $900k and die, my beneficiaries would be responsible for the tax on that $900k? I think I must be missing something.
There is conflicting information on this... According to an article on www.kitces.com/blog/life-insurance-loan-taxation-rules-at-death-or-lapse "From the tax perspective, though, the repayment of a life insurance policy loan from the death benefit of the policy is tax-free, because the payment of a death benefit itself (by reason of the death of the insured) is tax-free in the first place. In other words, to the extent that a life insurance loan is simply a personal loan with the insurance company that is repaid from the death benefit proceeds, the policy loan repayment is as “not taxable” as any loan repayment is, and the tax-free life insurance death benefit remains tax free."
Your beneficiaries get $100k.
Cash value when you die? No one covers this.
Hi @chrisvolk106 I’m not clear on your question or statement. When you die you are leaving behind a death benefit, not cash value. If you have an open policy loan it is settled from the death benefit before disbursement.
As always, my question is: why isn't everyone doing this?
Thanks for your comment @HazeltineLLC that's a great question. I think it's because of lack of knowledge, confusing messaging by agents and advisors more focused on making large commissions, and once you can get passed all of that; fear. Many people take no action out of fear.
Either method is generally too complicated and related to math for many people to get this concept. The combination of both methods is beyond comprehension for most people.
I agree. It takes discipline, knowing our numbers (where we are standing).
@@HazeltineLLC 23:00 seems pretty scary
This was VERY insightful, I’d never heard of “infinite velocity”, bit it seems I’m using a hybrid version of that, I also utilize a hybrid version of infinite banking (knew what that was), unfortunately the life insurance part wasn’t viable for me or most working class people as you either have to wait years or decades to deploy it or have cash up front (opportunity costs being too high in this market) so I’ve been building up using my savings account and the same principals, which allows me to focus on getting as much as possible into the markets. Once the pool is up high enough the goal is to transition into the “real” infinite banking to get the added policy protection add tax haven.
Thanks for this insightful video!
-Reckless Ray Dinero 🐺
Hi @RecklessRayDinero I would love to talk through this with you. Please book us for a call…. calendly.com/sebastienboyer/whole-life-insurance-saving-strategy-clarity-call
Ahh I get it. This guy is selling whole life insurance products. That's why he wants us to call him directly. This comment will probably be deleted.
I had one of those many years ago and sold it early, losing some money. I realized that the only way I would benefit from a whole life policy is by dying. I now have just been saving money and have a decent amount of savings now.
I'm sorry to hear that you purchased a policy that you aren't happy with, but assuming all life agents and whole insurance products are the same is like eating at an Italian restaurant and getting food poisoning and then saying you'll never eat at any Italian restaurant again. I am a licensed life insurance agent and I take pride in designing policies that benefit my clients and I take huge cuts in commissions compared to most agents that sell high premiums with very little cash value (probably what you were sold). Most agents selling life insurance either don't know what they don't know or they are intentionally trying to sell for max commissions and so are not providing the best solutions for their clients. If you setup a policy with a participating mutual company that pays dividends on the cash value and the agent does the right thing for you, not their pockets, the policy can literally provide you with a cash savings space called PUA where 75-90% of your premium can go into the savings space. With guarantee growth + dividends, your money will multiply and grow year over year. There is a guarantee on this as long as you fund it appropriately. You also have a death benefit with living benefits and you can leverage your cash value through policy loans to invest in whatever you want without interrupting the growth inside the policy. Please check out the books: What Would The Rockefeller's Do? by Garret B. Gunderson and Become Your Own Banker by R. Nelson Nash
Hey I would like to do the infinity banking w the whole life insurance. What r the best places to do this through? please contact me ty. Much 💙
Please schedule a free call to discuss… calendly.com/sebastienboyer/infinite-velocity-clarity-call