We can do that as well, that isn't an issue we are transparent if that is what someone wanted to see. Guaranteed outlay is worst case scenario with no dividends being paid and the companies we use have never missed a dividend so the idea is great knowing what worst case is but doesn't give the full picture especially since that has never happened.
@@FactsFinancial You are 100% correct, but if these contract only paid the guaranteed I would not be in the industry nor even talking about the concept, what makes this strategy so powerful is the dividend that has been paid out constantly year after year.. Now I am not opposed to talking about it and even showing it on the channel, we usually go more in depth with the guaranteed numbers on a call with our team if someone wants to see them.
@@NIKKIMarie119 If you only look at the guarantee value and not the non guarantee values you will miss out on some of basic fundamental principals of how it works. IF you value the guarantee values amazing, looking at them both would be a good practice to have then.
shit is not worth it at all. like not at all. put your money in another other asset or service that appreciates more than .5% a year. Also all ur cash is at risk.worst investment anyone could ever make.
I understand where you are coming from, if we look at it from a view point that this is an investment, I agree with you. If we look at it as this isnt an investment and is a safe place to store money when you need it for an investment it becomes an incredible asset. And hey .5%/ year if we are going to talk bad about something can we at least be a little accurate lol
Hey brother, informative video I one to be able to cash value with limited funds I’ve 8K to 10 K in stocks and bitcoin trying to get cash value to fund a mortgage or even use my policy as collateral for a mortgage or my business. How would I go about that?
Great question I would click the link in the description to talk to someone on our team to see if this even makes sense for you. Right now where you are at in life it may not even be the right time for you.
@@annoyingtechfixes4702 When setting up the policy you choose what the limitations there are. If you set it to 10k/year then yes that is the most you can do but you can set the limitations at the beginning to 1 million per year if your income and cashflow allows for it. But once your limitation is set you are correct you can't put anymore than that amount you choose. So the there is no limit to how much you can put in before you start but once you start the limit is then set and if you put more in the policy can Mec for sure. So yes thank you for clarifying.
Have you done this? There’s a video out there that says someone did this to find $96 in hidden fees within a 90 page disclosure per $200 of payment! Nuts!
@@AndAssetI think this guy was buying hype into a fly by night company and not a mutually held specially engineered whole life that has paid dividends for over 100 years. Looked on a subreddit on infinite banking and someone saying who he went with and looked them up online and saw fees in their prospectus but it was very tiny. So I don’t think that $96 is the industry standard or anything but worth going into this eyes open.
@@manonthemountain 1)it’s not an “investment” it’s a concept from which to move your income before expenses through and borrow out to pay expenses. 2)it isn’t “whole life” it has to be engineered. 3)You can do the “infinite banking concept” with a number of insurance vehicles or bonds, stocks, a wells trade account with an SBLOC or a Robinhood account, or even a similar idea with “velocity banking” using a higher interest rate to pay off a lower one faster for less interest overall. The idea is rather than earn $50,000 and spend $35,000 and save $15,000 in cash and once you have enough savings then you invest, you invest $50,000 right away, borrow out $35,000 only as needed and use your next $50,000 to draw down the balance of the debt and invest and again borrow the next $35k as needed. This allows you to invest 100% of your income rather than 30% as in this example and 70% is earning a spread between the earning rate of the vehicle and the effective interest rate. The effective interest rate is a lot lower because you aren’t holding the full balance for a full year. So if you were borrowing $10,000 at 8% and held it for a year $800 would be 8% but if your balance is constantly approaching zero and then you’re investing more and only backing out the expenses later, you may only pay $200-$400. The 8% is not 8% since simple interest is calculated off the average daily balance. So if $800 is the full year a days worth of interest at $10,000 might be $2.00 interest. If you are expecting the market to underperform and then overperform or decline or remain stagnant a long time as it did from 1900-1935, 1958-1982, 1995-2013, an engineered whole life is fine if it doesn’t have egregious fees because you have capital tied up earning probably more than a CD or money market fund without locking that money up, and you have the flexibility to borrow at a low rate and invest it and make not only a spread of the difference of 7-8% and the interest rate of 5% in a more conservative asset allocation strategy along the way but also as the policy matures your initial money compounds at 4% or so and then you also reduce that 5% to a lower effective interest rate by having your capital move through this vehicle. You could just as easily invest directly into a Robinhood account and use robhinhood’s debit card or credit card directly to spend money if you think the market is going to outperform or use options strategy or MPI (leveraged IUL), or even if you don’t, it’s a little more straight forward and the advantages in terms of total performance (without the bennefits of insurance), aren’t that much better in whole life… even if the market underperforms and you have invested accordingly. You borrow at “8%” (which ends up being a lot less) as needed or you can just spend from your available “cash” while it earns over 5% most of the month. If you want to, you could transfer out cash or margin at the last 7 days or so into a checking account to then pay off the credit card statement and avoid interest. 100% of your income is making probably 8.5% minus probably close to 4% and the 30% or whatever that you would have invested or saved anyways also can make 8.5% and during periods where you are more aggressive and market is outperforming it might be 10% it might be 20% (minus around 4%). This is still the “infinite banking concept” in my opinion. Velocity banking does a similar thing where you have all your paycheck go into a debt vehicle like a HELOC to draw down the balance of the HeLOC then when it’s zero you use the HELOC to make a chunk payment into principal. Since in 5 years you could pay $120,000 into a $285k loan at 7.5% and only $15,000 would go into principal and $105,000 would go to interest, paying $15,000 in principal payment would save you $105,000 in interest and skip 5 years ahead of the loan. Borrowing at 9% and have all your excess cash reducing the balance plus the portion of paycheck normally earmarked for expenses sitting on the debt tool until it is needed will allow you to pay substantially less than $105,000 in interest and better yet you can take out small chunks of $5000 to keep the HELOC balance lower and still pay $15,000 in principal payment over a short time period. This may as well be the infinite banking concept only the “savings” go into the equity you create in the home. If you pay down a property on bankers schedule, $15,000 in equity gained, if you have an extra $30,000 you save over that time period that you insert into principal payments, you have $50,000 in equity gained. If you use “velocity banking” you have $70,000. If you amortize the loan yearly each year you have $80,000. That’s largely the power of investing your net income rather than your gross income in drawing down debt balance and not playing by the bankers schedule. Similar idea for having your money sit in an investment and/or drawing down margin debt or sitting on an insurance vehicle.
Let’s say someone age 30 wants to use the to pay of credit card debt about 60K of it. How soon would the be able to borrow money? What’s the average cost? The start up cost and monthly cost?
That is a great question! You could start borrowing usually within 15-30 days of starting your policy. The loan costs currently are between 5-6.2% depending on the company. And there are no mandatory monthly costs just your ongoing premium payment that will keep compounding over time. The start-up cost varies per person and company you can see in the example in the video you dont have dollar for dollar access which are the the start up costs as well! I hope this helps! Let me know if you have any other questions!
Why would you accumulate $60k in credit card debt at an incredibly high interest rate while paying large premiums into a whole life insurance policy? 🤷♂️
@@tayotabi That is a very fair question. In the best case, pay off the debt, redistribute that cash flow to the policy, and then use the policy funds for an investment.
@@tayotabithis is the answer to the original question. Best solution woukd be to pay off debt with that income rather than try to purchase new life insurance policy to take out a loan against. Handle debts first. They only get more and more troublesome as time passes on.
@@AndAsset I agree, I’m my argument is that your stuck in a fixed income security product with a product such as Whole Life, IUL, or UL where the insurance company dictates how your premiums are invested and can make changes at anytime which can hinder a client and policy performance. VUL gives the policy owner FULL control of where those premiums are invested and over the long term will yield positive results based upon historical data.
I also dont disagree. But I also wouldn't use the word WL and Security in the same context. And giving the policy holder full control over where those premiums are invested I also wouldn't say is always a good thing. I like a VUL with the right company and the right design, but having a safe asset with no market risk gives me as a business owner more peace of mind that if I want to use my dollars I don't have to worry about market fluctuations, a little higher fees and a little more higher insurance cost. Where as with something like WL I get higher early liquidity as I value the use of my dollar today, even if long term I may not have as much upside potential growth. @@danielleon5074
One of the reasons we believe whole life insurance is such a powerful asset is because it has numerous benefits other than just a permanent death benefit.
Once you use your Cash Value it keeps growing. So if there was 50k in CV and you used 30k. The full 50k is still getting compound interest. But you do fund it every year, the more money you put in the faster it compounds and grows.
@@03C_R You are never taking it out you are getting a loan against it. Just like you get a heloc against your home. So yes this does have a borowing rate but this is also how you are able to not pay taxes and have your dollars keep compounding even when using them, never interrupting the growth.
What will grow more? Dollar cost averaging into an investment with a 5% return for 25 years or a 4% return for 30 years? Answer: 4% for 30 years. I’m hesitant to agree the cash value of a life insurance policy is a better place to put one’s money then a conservative allocation for safe cash appreciation…even if it can grow 5% a year after a few years of negative returns.
Great conversation to be had! The answer in my opinion is it really depends. Two things to consider one is taxed another is not. One you take out and lower the principal the other you don't. Technically you could borrow against your brokerage account and get the same benefits it would just be more more volatile. I would say if you didnt plan on using either accounts for 30 years you would likely be better of putting it into an investment at 5%. If the goal is to use the funds to invest in other assets I could argue the 4% in life insurance would be better all day and twice on sunday. Also It isn't the sexiest but the 4% also has a death benefit to protect your loved ones or pass down to the next generation giving you permission to spend down other assets not worrying about what money to pass down to the next generation since you have the death benefit ear marked for it.
@@AndAsset Fair point...and I was more so making the point that because it takes 5 years to break even on the cash value of a WL policy (most don't, but I understand if you structure it 'well' that some can) that it's as if you invested for 25 years and not 30 compared to whatever your safer investment and cash asset alternative blend would be. The time value of money is a big issue in the beginning years of an investment and/or asset. And I'm not anti-commission or fees, it's just the nature of it being front loaded that seems to really hurt it...That and several other elements of perm life dissuade me from its use in general.
@@polibot1 Yah that makes perfect sense! Yah for me it would be compared to what? What's the alternative? What can get 5% that is a safe allocation year in and year out over a 25 year window especially with no taxes and potential of losses and that's liquid? When I hear DCA I instantly think roth or index funds which are all great options, but roth has limitations to how much you can use before 59.5 and limits the amount you can put in. An index fund still has fees it's very low but still does, it does have taxes on the growth, and likely with this strategy it limits liquidity when you need it most as most asset classes go up and down together. So if you wanted to use the funds for an opportunity it becomes challenging because your account balance in the index fund is away down when the asset you want to purchase is also down. But if you don't plan on using the funds in the index account and that is your main strategy then amazing you have time to let it recover and you can definitely be a millionaire. But nothing more than middle class likely. The wealthy are buying assets that cashflow, businesses, real estate, notes, ect. Usually things that cashflow and or have upside, that also have tax advantages. And that is really why a whole life policy could become super valuable for instances like that because when ALL assets are down on discount your whole life policy still grew the following year giving you more liquidity to invest into assets. Also you shared that the first 5 years of the whole life make it challenging for you to commit which I also understand but if you invest in the market at the wrong time that break even point will take way longer. From 2000-2013 it took some people that long to break even on their funds that were invested, that's 13 years.
Id rather put it into an IUL, 100k yr, age 30-65=3.6 million contributed, Cash value conservatively/depending on the S&P500, AT age 65= $10,511,018 cash value, death benefit $12,613,222. If its not touched, AT age 90 is $40,055,431 death benefit (if S&P500 does 5.94%) and cash value is $38,148,030. ($3.6 million still contributed) if I want insurance I would get a term for the coverage. Good knowledge though. Can't see the entire thing but overfunding is crucial especially if using it to use the cash, otherwise its just an expensive policy that someone sold to make a large commission. Sadly our agencies and agents come across it all the time and replace them with properly structured policies.
Whole life shouldn’t be treated as an investment. The cash value should act as a reserve for when the market is down if you’re in retirement and living off the interest you’re earning in the market.
@@TyeRn It isnt necessarilly good or bad it just depends on your goals. That could be good for some and bad for others. I would have to know more about you to answer that directly.
@@TyeRn$500 a month into a UIL is a horrible financial mistake. Do yourself a favor buy a good term insurance and invest the difference into a Roth IRA
"Scams" yet you have no proof its a scam. Here you are acting like you know insurance. Its like a fat dude telling you why working out doesn't help you lose weight.
Show the years ?? It doesn’t grow that much the first first or 3. Shit. It’s not till 5 years later and it’s definitely not that amount .. that iis why people get ripped off. teach them right !!! .. or else I will
I actually don't know what you are saying lol but here is the full video if it gives better context. ua-cam.com/video/Ye78EmUz9QY/v-deo.htmlsi=wNvbeL3blQCT7wK4 but from what it sounds like you are saying is you are saying "it doesnt grow much the first few years". That is correct that is how this works. This isnt meant to win any awards in growth. The use case for this is way greater than just the growth, if I wanted the highest growth rate on something I would put it in crypto.
This is an example of what many of our clients do but it's certainly not necessary to pay a 10k a month premium to have a well-structured whole life insurance plan. But it can be very effective for those who can afford this amount.
Someone making 120k a year. So a couple making $60k each. You can route your paycheck through so your income goes in and charge your expenses then borrow out as needed to pay expenses… but you better be extremely careful as there apparently are hidden fees in some policies.
@@funnyperson4016 I would never encourage any one to run their entire income through a policy if a 60k annually is what each person made then I would say 15k per year makes more sense. 25% of ones annual income is a good place to start.
@@NathanAtkinson590 That isn't what this would be used for, and it would be a terrible idea, the way you are probably thinking about it. You get to do them both at the same time. This money keeps growing and compounding for those 10 years while the same money is in a good investment. Your dollar is growing in both places simultaneously.
Must be a mutual/participating policy.
Correct.
ua-cam.com/video/DqxuxJcNKo0/v-deo.htmlsi=ZtE96uazjm_Wrscz
But what do you mean by putting into the 100k , is that in premium .
Yes, that is correct. That is, for example, purposes, you can do less if you want.
Curious, which carrier is this?
Great Question for this video this was Penn Mutual, this was done a little while back so things do change with insurance carries from time to time.
the debt benefit value as a whole will eat the cash value inside the policy if the debt benefit is a lot more than then cash value.
The more death benefit you have the less Cash value there will be correct. So if you want to have a cash focused policy it must be designed for it!
This is the nonguaranteed premium illustration. Show the guaranteed premium outlay.
We can do that as well, that isn't an issue we are transparent if that is what someone wanted to see. Guaranteed outlay is worst case scenario with no dividends being paid and the companies we use have never missed a dividend so the idea is great knowing what worst case is but doesn't give the full picture especially since that has never happened.
@@AndAsset pls show it because that’s what’s guaranteed to the client not the non guaranteed.
@@FactsFinancial You are 100% correct, but if these contract only paid the guaranteed I would not be in the industry nor even talking about the concept, what makes this strategy so powerful is the dividend that has been paid out constantly year after year.. Now I am not opposed to talking about it and even showing it on the channel, we usually go more in depth with the guaranteed numbers on a call with our team if someone wants to see them.
Exactly...People will mislead you .if you don't know how to break it down..always look at the guaranteed value not non guaranteed value..smh
@@NIKKIMarie119 If you only look at the guarantee value and not the non guarantee values you will miss out on some of basic fundamental principals of how it works. IF you value the guarantee values amazing, looking at them both would be a good practice to have then.
Interesting!
What do you find interesting?!
great info!
Thank you!! Appreciate the support!
shit is not worth it at all. like not at all. put your money in another other asset or service that appreciates more than .5% a year. Also all ur cash is at risk.worst investment anyone could ever make.
I understand where you are coming from, if we look at it from a view point that this is an investment, I agree with you. If we look at it as this isnt an investment and is a safe place to store money when you need it for an investment it becomes an incredible asset. And hey .5%/ year if we are going to talk bad about something can we at least be a little accurate lol
Nonsense!!
What is nonsense?
Hey brother, informative video I one to be able to cash value with limited funds I’ve 8K to 10 K in stocks and bitcoin trying to get cash value to fund a mortgage or even use my policy as collateral for a mortgage or my business. How would I go about that?
Great question I would click the link in the description to talk to someone on our team to see if this even makes sense for you. Right now where you are at in life it may not even be the right time for you.
Is there a limit to how much I can pay on a policy each year?
Not really, the limitations come down to income and Cashflow so if those are limitless than so are your contributions.
@@annoyingtechfixes4702 When setting up the policy you choose what the limitations there are. If you set it to 10k/year then yes that is the most you can do but you can set the limitations at the beginning to 1 million per year if your income and cashflow allows for it. But once your limitation is set you are correct you can't put anymore than that amount you choose. So the there is no limit to how much you can put in before you start but once you start the limit is then set and if you put more in the policy can Mec for sure. So yes thank you for clarifying.
Doesn't that create a MEC?
Not if you know how to design it in the software with out it Mecing!!
Insurance information not that information
Hmmmm am i missing something?
garbage
Amazing!
Have you done this? There’s a video out there that says someone did this to find $96 in hidden fees within a 90 page disclosure per $200 of payment! Nuts!
WOW!!! LOLOLOL
@@AndAssetI think this guy was buying hype into a fly by night company and not a mutually held specially engineered whole life that has paid dividends for over 100 years. Looked on a subreddit on infinite banking and someone saying who he went with and looked them up online and saw fees in their prospectus but it was very tiny. So I don’t think that $96 is the industry standard or anything but worth going into this eyes open.
@@funnyperson4016 I would be interested to know who he went with!
Whole life is a bad investment anyone will tell you
@@manonthemountain
1)it’s not an “investment” it’s a concept from which to move your income before expenses through and borrow out to pay expenses.
2)it isn’t “whole life” it has to be engineered.
3)You can do the “infinite banking concept” with a number of insurance vehicles or bonds, stocks, a wells trade account with an SBLOC or a Robinhood account, or even a similar idea with “velocity banking” using a higher interest rate to pay off a lower one faster for less interest overall.
The idea is rather than earn $50,000 and spend $35,000 and save $15,000 in cash and once you have enough savings then you invest, you invest $50,000 right away, borrow out $35,000 only as needed and use your next $50,000 to draw down the balance of the debt and invest and again borrow the next $35k as needed. This allows you to invest 100% of your income rather than 30% as in this example and 70% is earning a spread between the earning rate of the vehicle and the effective interest rate. The effective interest rate is a lot lower because you aren’t holding the full balance for a full year. So if you were borrowing $10,000 at 8% and held it for a year $800 would be 8% but if your balance is constantly approaching zero and then you’re investing more and only backing out the expenses later, you may only pay $200-$400.
The 8% is not 8% since simple interest is calculated off the average daily balance. So if $800 is the full year a days worth of interest at $10,000 might be $2.00 interest.
If you are expecting the market to underperform and then overperform or decline or remain stagnant a long time as it did from 1900-1935, 1958-1982, 1995-2013, an engineered whole life is fine if it doesn’t have egregious fees because you have capital tied up earning probably more than a CD or money market fund without locking that money up, and you have the flexibility to borrow at a low rate and invest it and make not only a spread of the difference of 7-8% and the interest rate of 5% in a more conservative asset allocation strategy along the way but also as the policy matures your initial money compounds at 4% or so and then you also reduce that 5% to a lower effective interest rate by having your capital move through this vehicle.
You could just as easily invest directly into a Robinhood account and use robhinhood’s debit card or credit card directly to spend money if you think the market is going to outperform or use options strategy or MPI (leveraged IUL), or even if you don’t, it’s a little more straight forward and the advantages in terms of total performance (without the bennefits of insurance), aren’t that much better in whole life… even if the market underperforms and you have invested accordingly. You borrow at “8%” (which ends up being a lot less) as needed or you can just spend from your available “cash” while it earns over 5% most of the month.
If you want to, you could transfer out cash or margin at the last 7 days or so into a checking account to then pay off the credit card statement and avoid interest. 100% of your income is making probably 8.5% minus probably close to 4% and the 30% or whatever that you would have invested or saved anyways also can make 8.5% and during periods where you are more aggressive and market is outperforming it might be 10% it might be 20% (minus around 4%).
This is still the “infinite banking concept” in my opinion.
Velocity banking does a similar thing where you have all your paycheck go into a debt vehicle like a HELOC to draw down the balance of the HeLOC then when it’s zero you use the HELOC to make a chunk payment into principal. Since in 5 years you could pay $120,000 into a $285k loan at 7.5% and only $15,000 would go into principal and $105,000 would go to interest, paying $15,000 in principal payment would save you $105,000 in interest and skip 5 years ahead of the loan. Borrowing at 9% and have all your excess cash reducing the balance plus the portion of paycheck normally earmarked for expenses sitting on the debt tool until it is needed will allow you to pay substantially less than $105,000 in interest and better yet you can take out small chunks of $5000 to keep the HELOC balance lower and still pay $15,000 in principal payment over a short time period. This may as well be the infinite banking concept only the “savings” go into the equity you create in the home.
If you pay down a property on bankers schedule, $15,000 in equity gained, if you have an extra $30,000 you save over that time period that you insert into principal payments, you have $50,000 in equity gained. If you use “velocity banking” you have $70,000. If you amortize the loan yearly each year you have $80,000. That’s largely the power of investing your net income rather than your gross income in drawing down debt balance and not playing by the bankers schedule.
Similar idea for having your money sit in an investment and/or drawing down margin debt or sitting on an insurance vehicle.
Let’s say someone age 30 wants to use the to pay of credit card debt about 60K of it. How soon would the be able to borrow money? What’s the average cost? The start up cost and monthly cost?
That is a great question! You could start borrowing usually within 15-30 days of starting your policy. The loan costs currently are between 5-6.2% depending on the company. And there are no mandatory monthly costs just your ongoing premium payment that will keep compounding over time. The start-up cost varies per person and company you can see in the example in the video you dont have dollar for dollar access which are the the start up costs as well! I hope this helps! Let me know if you have any other questions!
Why would you accumulate $60k in credit card debt at an incredibly high interest rate while paying large premiums into a whole life insurance policy? 🤷♂️
@@tayotabi That is a very fair question. In the best case, pay off the debt, redistribute that cash flow to the policy, and then use the policy funds for an investment.
@@tayotabithis is the answer to the original question. Best solution woukd be to pay off debt with that income rather than try to purchase new life insurance policy to take out a loan against.
Handle debts first.
They only get more and more troublesome as time passes on.
Is this an IUL?
We have in the title that this is a Whole Life Insurance policy haha
VUL > WHOLE LIFE.
Potentially you aren't wrong. I would never say one product is better for everyone 100% of the time.
@@AndAsset I agree, I’m my argument is that your stuck in a fixed income security product with a product such as Whole Life, IUL, or UL where the insurance company dictates how your premiums are invested and can make changes at anytime which can hinder a client and policy performance. VUL gives the policy owner FULL control of where those premiums are invested and over the long term will yield positive results based upon historical data.
I also dont disagree. But I also wouldn't use the word WL and Security in the same context. And giving the policy holder full control over where those premiums are invested I also wouldn't say is always a good thing.
I like a VUL with the right company and the right design, but having a safe asset with no market risk gives me as a business owner more peace of mind that if I want to use my dollars I don't have to worry about market fluctuations, a little higher fees and a little more higher insurance cost.
Where as with something like WL I get higher early liquidity as I value the use of my dollar today, even if long term I may not have as much upside potential growth. @@danielleon5074
But you still only get 1 benefit with a whole life policy
One of the reasons we believe whole life insurance is such a powerful asset is because it has numerous benefits other than just a permanent death benefit.
Thumbs up!
Always appreciate your support!
The question is once u use ur cash value do have to have to restart again to fund ur cash value for next year
Once you use your Cash Value it keeps growing. So if there was 50k in CV and you used 30k. The full 50k is still getting compound interest. But you do fund it every year, the more money you put in the faster it compounds and grows.
Whatever money you take out you will have to pay it back with 4% - 8% interest.
@@03C_R You are never taking it out you are getting a loan against it. Just like you get a heloc against your home. So yes this does have a borowing rate but this is also how you are able to not pay taxes and have your dollars keep compounding even when using them, never interrupting the growth.
@@03C_R it’s simple interest vs compound interest your moneys earning. You could pay 6%simple and earn 4%compounded and still make more money
@TheAndAsset
What will grow more? Dollar cost averaging into an investment with a 5% return for 25 years or a 4% return for 30 years? Answer: 4% for 30 years. I’m hesitant to agree the cash value of a life insurance policy is a better place to put one’s money then a conservative allocation for safe cash appreciation…even if it can grow 5% a year after a few years of negative returns.
Great conversation to be had! The answer in my opinion is it really depends. Two things to consider one is taxed another is not. One you take out and lower the principal the other you don't. Technically you could borrow against your brokerage account and get the same benefits it would just be more more volatile. I would say if you didnt plan on using either accounts for 30 years you would likely be better of putting it into an investment at 5%. If the goal is to use the funds to invest in other assets I could argue the 4% in life insurance would be better all day and twice on sunday. Also It isn't the sexiest but the 4% also has a death benefit to protect your loved ones or pass down to the next generation giving you permission to spend down other assets not worrying about what money to pass down to the next generation since you have the death benefit ear marked for it.
@@AndAsset Fair point...and I was more so making the point that because it takes 5 years to break even on the cash value of a WL policy (most don't, but I understand if you structure it 'well' that some can) that it's as if you invested for 25 years and not 30 compared to whatever your safer investment and cash asset alternative blend would be. The time value of money is a big issue in the beginning years of an investment and/or asset. And I'm not anti-commission or fees, it's just the nature of it being front loaded that seems to really hurt it...That and several other elements of perm life dissuade me from its use in general.
@@polibot1 Yah that makes perfect sense! Yah for me it would be compared to what? What's the alternative? What can get 5% that is a safe allocation year in and year out over a 25 year window especially with no taxes and potential of losses and that's liquid? When I hear DCA I instantly think roth or index funds which are all great options, but roth has limitations to how much you can use before 59.5 and limits the amount you can put in. An index fund still has fees it's very low but still does, it does have taxes on the growth, and likely with this strategy it limits liquidity when you need it most as most asset classes go up and down together. So if you wanted to use the funds for an opportunity it becomes challenging because your account balance in the index fund is away down when the asset you want to purchase is also down. But if you don't plan on using the funds in the index account and that is your main strategy then amazing you have time to let it recover and you can definitely be a millionaire. But nothing more than middle class likely. The wealthy are buying assets that cashflow, businesses, real estate, notes, ect. Usually things that cashflow and or have upside, that also have tax advantages. And that is really why a whole life policy could become super valuable for instances like that because when ALL assets are down on discount your whole life policy still grew the following year giving you more liquidity to invest into assets. Also you shared that the first 5 years of the whole life make it challenging for you to commit which I also understand but if you invest in the market at the wrong time that break even point will take way longer. From 2000-2013 it took some people that long to break even on their funds that were invested, that's 13 years.
your missing the point
Its the capital safety, the same reason your not all in on stocks. These things are basically superior CDs/money markets
Id rather put it into an IUL, 100k yr, age 30-65=3.6 million contributed, Cash value conservatively/depending on the S&P500, AT age 65= $10,511,018 cash value, death benefit $12,613,222. If its not touched, AT age 90 is $40,055,431 death benefit (if S&P500 does 5.94%) and cash value is $38,148,030. ($3.6 million still contributed) if I want insurance I would get a term for the coverage. Good knowledge though. Can't see the entire thing but overfunding is crucial especially if using it to use the cash, otherwise its just an expensive policy that someone sold to make a large commission. Sadly our agencies and agents come across it all the time and replace them with properly structured policies.
How long have you been in the industry for?
Woke life insurance is a bad investment unless your wealthy
The reason I’m agreeing with you is because Whole life insurance isn’t an investment.
Whole life shouldn’t be treated as an investment. The cash value should act as a reserve for when the market is down if you’re in retirement and living off the interest you’re earning in the market.
Agreed it’s not an investment.
So I’m investing $500 a month into a UIL is that good ? I was investing that into my ROTH IRA
@@TyeRn It isnt necessarilly good or bad it just depends on your goals. That could be good for some and bad for others. I would have to know more about you to answer that directly.
@@TyeRn$500 a month into a UIL is a horrible financial mistake. Do yourself a favor buy a good term insurance and invest the difference into a Roth IRA
@@03C_R may I ask why exactly? I have a ROTH IRA as well but stopped funding it because of my IUL. what do you think about mutual funds ?
Im so tied of these scams !!!
Me too!!!!
"Scams" yet you have no proof its a scam. Here you are acting like you know insurance. Its like a fat dude telling you why working out doesn't help you lose weight.
I teach families how to get out of life insurance and plan a wealth !!! Period. !!!
@@KARINAHERNANDEZ-b5c Amazing keep teaching people how to do so! lol
@@KARINAHERNANDEZ-b5c I was excited to see your content but I see you don't have any.
How does WL compares to IUL
Here you go!
ua-cam.com/video/Z2G0vTJJQ7w/v-deo.htmlsi=kdCNS5Q7WjncVKQv
Show the years ?? It doesn’t grow that much the first first or 3. Shit. It’s not till 5 years later and it’s definitely not that amount .. that iis why people get ripped off. teach them right !!! .. or else I will
I actually don't know what you are saying lol but here is the full video if it gives better context. ua-cam.com/video/Ye78EmUz9QY/v-deo.htmlsi=wNvbeL3blQCT7wK4 but from what it sounds like you are saying is you are saying "it doesnt grow much the first few years". That is correct that is how this works. This isnt meant to win any awards in growth. The use case for this is way greater than just the growth, if I wanted the highest growth rate on something I would put it in crypto.
How can you teach people when you can even communicate properly?
@@theforce5191 👏🏽👏🏽👏🏽👏🏽👏🏽
the question is....who can afford a premium of 10k/mo??
This is an example of what many of our clients do but it's certainly not necessary to pay a 10k a month premium to have a well-structured whole life insurance plan. But it can be very effective for those who can afford this amount.
Someone making 120k a year. So a couple making $60k each.
You can route your paycheck through so your income goes in and charge your expenses then borrow out as needed to pay expenses… but you better be extremely careful as there apparently are hidden fees in some policies.
@@funnyperson4016 I would never encourage any one to run their entire income through a policy if a 60k annually is what each person made then I would say 15k per year makes more sense. 25% of ones annual income is a good place to start.
However, you will not be able to borrow until you reach a certain threshold correct? you'd be at a 120K loss for a year???@@funnyperson4016
This seems like an awful investment based on the math…
It would be if this was the investment. This is where you put your money first before transferring it to your actual investment.
@@AndAssetso I waste 10 years with a terrible return before dumping it into the market with good returns. Make that make sense.
@@NathanAtkinson590 That isn't what this would be used for, and it would be a terrible idea, the way you are probably thinking about it.
You get to do them both at the same time. This money keeps growing and compounding for those 10 years while the same money is in a good investment. Your dollar is growing in both places simultaneously.