I like and respect that you two are students of Dave Ramsey and still trust a lot of what he says but you think for yourselves and aren’t afraid to say it how you see it - it’s so much better than when people follow people 100% blindly just because they like a lot of what they say - great job!
I get your point fully however I still stand by my statement that Dave is basically too abusive to anyone whom doesn't follow his program to the letter ! I think Jim Cramer would be better guy to follow as he's consistently wrong on his investment advice ...... so much so that you could reliably go 180 on his advice & make a fortune .........
@fireindahole but on another point I have come to realize that these two are not smart at all at the very least orworst case scenario they are intentionally deceiving people - whole life insurance is a TOTAL scam and ripoff and they are selling and benefiting from the ripoff
@@r.rodriguez4991 sadly I purchased two rent properties, I still regret not buying Google in 04..I had just received a 54k settlement check and listened to a CNBC analyst about Google was a terrible IPO and was not a good buy so I purchased investment real estate, that didn't appreciate like Google.
This makes no sense. People who listen to this advice should really seek a CFP vs Insurance agents who make substantial commission based on selling these policies and isnt a fiduciary.
Dave is great for helping or should I say motivating you to pay off debt after that completely ignore Dave and educate yourself and get other perspectives.
How much is all the fees, commissions, costs, and ALL PROS AND CONS related to infinite banking vs whole life insurance vs investing your money in a self-directed ROTH IRA, or a self-directed ROTH 401k Plan? WE NEED CLEAR TRANSPARENCY IN COMPARING EVERYTHING!
I drank the DR cool aid too and I still respect what Dave does but I agree with you guys. Another thing that is happening with Dave’s advice is the 60 and 70 year olds who outlived their term policies and never really invested and now can’t even get a term life policy.
To be fair, these people have their own version of Kool-Aid as well, and it's even worse than Ramsey's version of Kool-Aid. I don't agree with Ramsey about whole life, and I think he doesn't seem to realize that reality is a bit more complicated than simply investing all your money in index funds that broadly track the market. But I can see where he is coming from at the very least, and to be fair, whole life, often, is a bad idea under certain circumstances. On the other hand, Wealth Nation's advice is kind of ludicrous to be honest. So, you are going to put a ton of money into a whole life policy so that you can borrow YOUR money that YOU invested and then, essentially, pay a recurring penalty for using YOUR own money until you put back what you borrowed plus the interest accrued? Sure, you don't have to pay taxes the way you do when you withdraw money from the market, but the catch is that you can expect higher returns from the market even after taking the fees and taxes into account. They also promote this idea that you can borrow your cash value, invest it, and then put back the amount you borrowed plus the interest accrued and keep the difference. There is a big problem with that, though. You can expect the interest rate on your borrowed cash value to be 5% or so, which is about the return you can expect from the market after fees and taxes on average, so you aren't going to make any significant profit that way if you even do make a profit. Sure, I don't completely agree with Ramsey, but his advice isn't quite as ludicrous as this notion that you can get rich using whole life (don't be fooled by the fact that a lot of rich people take out already expensive whole life policies that they fund even further - they do that because they were already rich, not because doing that makes them rich). I would say the intelligent way to treat a whole life policy is to treat it as a backup and nothing more - one should get a whole life policy where the death benefit is no more than three times his/her income and not fund it beyond the required premiums.
...and with that being said, if that individual was not able to invest in a separate account, maybe they were strapped for cash. But, yes, not investing with a term policy is a risky move.
They don’t mention that in a bank you can borrow hundreds of thousands of dollars, example is when we bought a house, we borrowed 600k without collateral, with “infinite banking” you can only borrow 80-95% of your cash value. So you mean if I want to buy a house I have to somehow get 700k to give to a life insurance cash?
I am totally grateful for Dave Ramsey and FPU because I am a graduate and my dad was even an instructor. That being said if I followed exactly what Dave said to do I would have been left in a foreign country without any access to my own funds. I have traveled around the world 3 times yet he said there is no reason for a credit card.. I've had my bank shut down my debit card for 3 days without any way to contact them. Sorry Dave, I choose not to be homeless in Doha. Dave shouldn't have such a smug attitude about things he really hasn't researched. Dave 90% awesome thank God for him and 10% Insane and needs to zip it.
I have a similar outlook / story. I think Dave’s advice and his ideas are great for people who have NO FINANCIAL DISCIPLINE. It keeps people in line, keeps them high on the FEELING of not being debt (which is actually a financial tool to those who know how to use it), and keeps people in their tax bracket (not an inherently bad thing). The gazelle mentality is great for putting people like me to into a stage where we can now think more with an ABUNDANCE mentality, and prosper, without sucking down beans and rice every night.
I would not say Dave need to zip it because many people need to learn The Basic Financial Knowledge. Dave will not gave you an OUT of what he is teaching. Dave software (lessons) are taught in our schools to all of our children. No one is teaching the children at home, so the children starts financial education with Dave. Oh, by the way no one has taught their teachers either. As that child financial education grow the child will make changes along the way. Some changes will be good and some not so good, but good common sense and basic financial education will be a savings tool for a strong financial foundation. (small talk)....
@@vanessajackson2889 hey can you recommend for people that would like Basic Financial Knowledge a good UA-cam channel or website to start? Would appreciate it
Great information. I work in the death benefits industry and you are spot on. There is however, with most policies a time frame before you have access to the cash value option of these types of policies. Most times people take out the cash value amount to cover medical expenses, hospital stays, etc. It's more expensive but the benefits from using these policies vs. Term life are great. Make sure to do your due diligence in selecting the best company for this option. ALSO, if the loan isn't repaid at the time of death, it is deducted from the remaining balance of the policy unless you select riders that will provide additional coverage.
He did the exact same thing when he compared a HELOC to a traditional mortgage (to pay your home off faster). He explained an amateurized loan using simple interest. Two completely different things. His suggestion was to make extra payments, not replace one loan with another (No matter how financially beneficial).
I really struggle with these people because they do not do a great job of simplifying what infinite banking is. I understand the theory but the practicality is not well described in none of the the videos. Each is an hour long plus...
Traditionally we have two options when we buy anything : 1)Finance it 2)Pay Cash Dave Ramsey is the cash guy. Obviously that's better than financing and paying interest. But paying cash is self financing. You lose the ability to earn on your money when you pay cash. Infinite banking gives us a third option, pay cash while still earning on your money. 3) Infinite Banking
Great points. Paying cash is foregoing the ability to make an interest payment. If people understood how much interest they were paying lenders, they would be shocked. Best to pay it to yourself and keep it in the fam.
Insurance companies love it when you overfund your policy and increase your cash value. And you can believe all you want that you are "paying yourself" when you pay interest on your loans. Guess who gets to keep 100% of your cash value when you die - the insurance company! All your heirs get is the death benefit minus any outstanding loans. The little talked about commissions and fees sap the cash value and result in pathetic growth for WL policies. Great investment, right? Try comparing the net worth results after 10 years of two strategies: one with whole life and another with term insurance and the difference invested in a good mutual fund. The latter will come out far ahead. That is why Dave Ramsey is against WL policies and "infinite banking" - because there are much better alternatives. His point is: what would you rather have? $500,000 in a cash value that you can borrow against or $1000,000 in a fund that is all yours to spend as you like without having to borrow a dime.
Yeah. Dave hates debt/credit. He thinks it is evil. But long term, you are doing yourself a disservice to you and your money buying everything cash and paying debt as quickly as possible. You end up losing the ability to let your money compound and that is extremely important in wealth building. It is important to do the math when it comes to whether or not financing or cash is the best option in the long run. Cuz taking 30k to buy a car instead of leaving it to compound isn’t generally the best idea. Of course that doesn’t mean everything needs to be on credit, but we do need to prioritize letting our money compound. And Dave’s way does not really do that.
If you invest in your mindset , skill sets and network you wont have to cut back on expenses and live like a pauper . Your mind is your greatest asset there is no way you can invest in it coupled with taking action and not increase your income. I'm not sure my comments are relevant to this video , I was reading the comments.
Subscribed. YES. Someone who can speak intelligently to Dave. And why wouldn't you want a repayment of your own money and AVOID taxes!!? Yes, businesses are in the business to make money and I would much rather them "over charge" in order to ensure they cover their costs and then return that premium. Yes, that is what the IRS does (unless you know how to not overpay them and allow you to grow your own money). This is the type of education I want to bring forward as well. I got into World Financial Group (WFG)/TransAmerica and am ready for a change. Is there a way to just pick y'alls brain to see how you got into all this?
"And why wouldn't you want a repayment of your own money and AVOID taxes!!?" Well, why would you want to pay money to be able to use your own money? If you borrow $20,000 of your own money from your whole life policy at a 5% interest rate, you will owe $1,000 to your insurance company one year from today. If you put back the $20,000 into your account and pay the $1,000 to your insurance company, then yes, your whole life cash value balance specifically will be identical to what it would have been if you had never borrowed from your own policy, but then your total balance outside your whole life policy will be $1,000 less than what it would have been otherwise. So, that $1,000 was at your expense and wasn't something you just paid to yourself. The second part of your question is valid, but here is the catch. You can expect higher returns from investing in index funds that broadly track the market (S&P 500 funds, for example) even after taking the fees (which are much lower than the typical 5% interest rate that you pay to withdraw from your whole life policy and continue to pay if you don't put back the money your borrowed plus the interest accrued) and taxes into account. This is not to say that I oppose whole life in its entirety. Whole life can make sense as long as it's pursued intelligently, and the intelligent way to look at whole life is to see it as a backup plan. The majority of your investments should be in index funds that broadly track the market, but whole life can serve as a back up when the market is down. The majority of your life insurance coverage should be through a term policy, but whole life coverage can serve as a back up in case you live long enough to not only outlive your term policy but also exhaust most of your savings. That's why I recommend getting a whole life policy where the death benefit is no more than three times your income and not funding it beyond the required premiums. THAT is the sensible way to go about taking out a whole life policy. Trying to use a whole life policy to get rich as these two advocate, on the other hand, is just going to lead to heartache for you (don't be fooled by the fact that a lot of rich people take out already expensive whole life policies that they fund even further - they do that because they were already rich, not because doing that makes them rich).
IT’S ALL A SCAM UNTIL YOU NEED IT!!! 🤣🤣🤣🤣🤣. I love that because isn’t it crazy that it ain’t a scam when it’s working for the ppl it works for? Thank you both for your videos. New here 👋🏽
The problem is that you don't seem to understand what exactly it is that's working here. If you save and invest your money in the market and then withdraw $25,000 from your investments to buy a car, you would agree that you are simply taking money YOU saved and invested to purchase a car, right? Well, that's literally all you are doing when you borrow money from your whole life policy. What's "working for the people it works for" is that they are saving and investing, not infinite banking. And it is a scam in the sense that your whole life policy will provide lower returns than the market on average even after taking into account the taxes and fees associated with investing in the market, and then on top of that, you can expect to pay a 5% or so interest rate to borrow your own money out of your whole life policy. Using whole life as a backup plan (it can serve as a backup when the market is down or if you live long enough to not only outlive your term policy but also exhaust most of your savings) is certainly sensible, but using it to "be your own bank" is a great way to throw your hard earned money away. I will say this, though. If you don't have the discipline to save and properly invest in the market, then by all means, go the route of taking out an expensive whole life plan that forces you to put a lot of money in it and basically forces you to put back the money you borrow from it. After all, some savings are infinitely better than no savings.
Whats important, especially with finance, is to gather information and decide what's best for YOU. Thank you guys for putting out the information! Extremely helpful!
That is why it’s called “personal finance” What works for one person may not work for another. Dave (love some of his advice too) but he is one of MANY people in the financial arena. Due your own DUE DILIGENCE and do what works for you.
FPU was helpful for reinforcing discipline and removing roadblocks. I’m still working on how IBC can work for us and our goals. The thing that clicked for me is that term is about protection and a whole life policy and IBC is about leverage. Borrow against the whole life, purchase an asset, pay back the loan. Wash, rinse, repeat...the place where people get in trouble is, like with any credit, not having the discipline to manage the leverage. Am I picking up what you’re putting down? I still need to learn what a properly structured policy looks like for my wife and I to reach our goals, but your content is really helpful!!
I get why people feel the way they do about a whole life policy, but I think they fail to look at the whole picture. You guys actually did a good job of explaining this. My wife and I both bought whole life policies 40 years ago and glad we did. The banks pay me literally pennies every month in interest payment on my accounts. Much less than the interest on my cash value.
The key to Financial Advisor is Series 65, 7, 6. The appropriate certification is CHFC, CFP, CLU. So, Ramsey is correct he just needs to be educated on the qualifications. There is space for whole life in a sound, solid financial plan but not how it's presented. Your clients can maximize their savings with WL if they have maxed out their 401k, 403B, Pension, IRA, ROTH, or whatever. Then they can reallocate some funds to a well structured WL policy. The insurance company is a loan shark. They're charging you to borrow from yourself. Please stop, if your client has 10g and no emergency savings, why encourage them to put it in a WL policy and get charge an internal rate of return and deplete their principle, only to wait and take a loan out and get charged interest on the balance. It's not sound for a motivated saver to lose money.
You guys were extremely tactical, and merciful to Dave Ramsey. Very professional defending your position about the tool. I would remind you though (not saying you don't know this already) insurance is largely in part about those we leave behind...i did say in part...
I 100% understand and embrace the concept Infinite Banking. A Whole Life Insurance Policy is the TOOL/MECHANISM that is used to facilitate the process of Infinite Banking. Not Infinite Banking itself. I think once people are crystal clear about this, the Infinite Banking CONCEPT makes much more sense as an option and in my opinion becomes painfully obvious as your next step of quasi removing yourself from the "traditional " banking and financial system 👍🏾
At the end of the day - a cat is still a cat!! Whole life is still whole life!!! And at the end of the day, you will lose the first 2 to 5 years of your "savings" to the agent that signed u up for the policy! And the cash value will ALWAYS be a loan, unless you cancel the policy! Where's the win?!?! The couple here isn't talking about a traditional whole life policy! They are talking about lump sum policies!! Where you also lose and whatever is available is STILL a loan!
@@blessedb21 Exactly! Don't get me wrong. I am not opposed to whole life if it's pursued in a sensible manner. The proper way to view whole life is to view it as a back up plan. The majority of one's investments should be in index funds that broadly track the market (like an S&P 500 index fund, for example), but whole life can serve as a back up when the market is down. The majority of one's life insurance coverage should be through a term policy, but whole life coverage can serve as a back up in case one lives long enough to not only outlive his/her term policy but also exhaust most of his/her savings. But using whole life to "be your own bank" is certainly ludicrous. As you pointed out, it makes no sense to put a ton of money into a whole life policy so that you can borrow YOUR money that YOU invested and then, essentially, pay a recurring penalty for using YOUR own money until you put back what you borrowed plus the interest accrued.
@blessedb21 you might want to look at the video where they explain their process and how it works because the win comes in where you can actually borrow against the policy and use the money to invest in other assets to grow your capital the "loan" is not a traditional loan because you don't pay any interest on it until after 12 months also the money is still compounding as long as you don't withdraw money that's not yours so
Anybody thinking about buying a whole life policy to do the "infinite banking" should compare it to a "normal" bank to see if that really makes sense. Below, I list the benefits I get from my "normal" bank. How would your "infinite bank" compare? My bank (Ally) did not need a salesman to sell me my account. My bank, where I "store" my cash, does not charge any commissions. I "break even" on day one. My bank has no fees to sap the effective interest rate - currently 4.25% (2023). At my bank, if I want some of my money I just request it and they give it to me. No fees. If they send me money from my account, there is no need to pay it back to my account, but I can if I want to - interest free. If I don't pay it back, there are no compounding interest charges against my account. At my bank, if I want to close my account, they give me 100% of my funds. (No surrender fee.) At my bank, I earn taxable interest. That is because my account experiences real growth of money I can readily spend. At my bank, I will always have taxable interest income because I am able to pull out MORE than I put in. (The same could apply to "infinite banks," but you're unlikely to ever pull out more than you put in.) At my bank, if I want a loan, I don't have to self fund it first or wait 20 years to build up a cash value. At my bank, all loans are tax-free. (ALL loans everywhere are tax free!) At my bank, if I take out a loan, the maximum amount is not tied to some percentage of my savings account. At my bank, if I get a loan, my savings continue to earn interest unaffected by the loan. (WOW! Just like an "infinite bank.") At my bank, if I die, the bank does not keep the funds in my account. My designated heirs get ALL of it. My bank does not provide a death benefit. (OMG!) I don't want or need one, and they don't make me pay for it either. I'm ready to hear the benefits of an infinite bank as they compare to what I've listed above.
Just came across your , appreciate your temperament. What individuals need to hear are the facts about the numbers, the cost and expense, the process of getting the loans from the Mutual Company, and how we pay the loans and premiums when taking a loan for an investment... You two are lovely People.
No one is saying you should keep your money in the bank. You can keep it in the brokerage account and get the loan against it (“margin”)as well, to invest it. That way you are investing your principal plus margin in the stocks of your choice according to your risk tolerance vs in whole life your principal is growing at a very conservative slow rate with the multiple hidden fees. Plus in the brokerage you have an instant access to your own money without having to wait 7 years to just break even.
Also write cover calls (for every 100 shares of a stock you own).. When you buy call options, you're buying them fron a stock owner. Plus you still keep the dividends..
You've just earned by my subscription! Thank you for challenging Dave Ramsey, some of his followers are in a cult. It bothers me that some of his advice borders on unethical.
For sure! Dave has gotten rich off of telling people basic ordinary stuff...Who is scamming who? He knows nothing about leveraging, he should just admit that and stay in his lane. I never cared for him, with his smug ass! lol
I actually have "term life" written on my white board because the Ramsey team recommended it but I wanted to whole life so that i could borrow. I was so confused that i didn't buy anything! I'm so glad YT recommended your channel. .. I'm a new subscriber. Thank You!!
Dave is good for getting out of debt bad for investment advice.I graduated to finacial police and got out of debt including my home.I do use my own bank this last year to buy silver at spot price 17.00.I only use my bank for opportunities to buy undervalued assets and pay it back.
I am not getting a needs analysis approach to your presentation. I have four children pre college age , a mortgage and a monthly expense minus mortgage of $3500 . Do you think I try and fund a Whole Life policy portfolio for the protection of my family or should I have a mixed portfolio and drop coverage when kids have left the nest?
They just dropped a dime at the beginning of the video and just kept it moving. Uncle said "If you can share a bathroom and balance a cheque book then you are good to go." 😱
I love this reaction video because you guys were so detailed and explaining the difference between life insurance and investments which is very important for people to understand that it is very important to educate yourselves and that's exactly what you guys give us. You guys were honest even with your reactions to what Ramsey was saying... Lol sometime s I think shows just do things for ratings I guess with any platform it's possible but what's important here is that the information that was stated between the calling Ramsey was not not accurate and trying to taint infinite banking when really they weren't talking about infinite banking and you guys just broken down loved it
It's not what you know or don't know that will hurt you, it's what you know for certain that is just plain wrong! Dave Ramsey refuses to learn anything new because it doesn't benefit him.
Yes. And the world loves him and is aware about how ppl value his opinion so in that he believes he’s a God of finance. Not that he’s not good, but he is certainly closed off in some aspects.
People misunderstand what Dave is saying. People think "Infinite" banking is a way to create infinite loans. But what most people miss with the Whole life insurance is that you have to put the cash UP FRONT FIRST. So what Dave is saying is how can it be infinite banking if I have to Bankroll the loans first.
This was a spot on reaction to Dave Ramsey. He does not understand what is going on with infinite banking. Also, he doesn't understand that the cost are lower when you break even on your cash value. He never mentions the 4% you make automatically as well. Funny how he omits these points about Whole Life.
Definitely Dave Ramsey seems to me that he’s getting a cut by promoting term life insurance, Even knowing the term life insurance it doesn’t work properly. we have lots to lose if we go with term life insurance, and that’s a concern because he is missed informing the community.
You both did a great job of breaking this video down and really giving people a good education of IBC! Dave Ramsey is misinformed and wishes to misinform others as well. Michelle Obama has four policy's open with IBC! We obviously know through our own research IBC is not a scam.
I agree with a lot of what Dave Ramsey say's when it comes to saving and consumer debt.. BUT.. Dave Ramsey acts like a guru that is really a specialized expert. He's perfect for making the most out of scarcity mentality. That's not hate, it's just a fact. Holding on to every dollar you manage to earn is a practice of scarcity. Those with real wealth do not operate this way. When you truly understand currency and products like the whole life insurance policies, coupled with IBC, you will understand that money is abundant, meaning there is no reason to be afraid of your resources running out.
In south africa ,we can't access the fund for that purpose, because it is not called life insurance but life cover and only beneficiary access the money on one's death
I especially like what you say at 33:30 and 33:40. Infinite banking concept (IBC) is a concept. It can be done with any pool of money. Dave doesn't understand that. It can be practiced with a savings or money market account. I love Dave and, like you, owe him much because he taught me much on the "grammer school " level of finances. But, he's wrong about IBC. Even though IBC can be done with any pool of money, a properly structured, participating, non-direct, whole life policy with a mutual company will put wings under the IBC. Yes, banks treat us badly. In fact, Nelson Nash says banks are evil. They lend money that they don't have; it's called the fractional system. The can lend 10 times the deposits they get from us. That's wrong and evil. They're the ones who make tons of money off us, not the insurance companies. Why doesn't Dave talk about that? You're also right the cash value (CV) and death benefit are one and the same. The CV is just the net present value (NPV) of the death benefit. If you die, the CV immediately grows to the death benefit. If you live to age 120, you get the CV which equals the death benefit at that age. It's guaranteed by the contract you sign. Dave's concepts are based on the Bible. And I respect that. I'm a Christian. But, I've never seen a more Godly man than Nelson Nash. I think his principles of IBC are Biblical, too. I wish he and Dave could have met before he "graduated" as he called it. Based on Nelson's life and testimony Dave would have had to respect him. I wish someone that knew Dave would explain Nelson Nash and the real IBC to him. I love Dave, but I love Nelson, too. It makes me angry to see Dave put down Nelson's legacy. I wish it were different. Sorry this was so long. But I'm passionate about IBC and respect Nelson sooo much. If you can't tell, I'm an IBC policy owner. I may have been your customer, if I'd found you first, but i'm with one of your Nelson Nash Institute compadres. Please, y'all keep doing what you're doing; it's God's work.
@@WealthNation That is as an excellent question. I think the biggest misconception is that IBC, and by extension an IBC insurance policy, is an investment. It is NOT. It is exactly what you guys talk about... owning your own lifestyle. It is owning the banking function in your life. It can't really be compared to investing and you can't really calculate an ROI. It's all about getting and using your own pool of capital instead of using the banks' pool of capital. By having your own pool of capital you can use over and over again, you are capturing all the interest you would have paid the banks in your own banking system. That is complete genius, and my hat is off to Nelson for developing the concepts; and, more than that, loving people enough to spread the concept and principles. And you aren't a slave to the banks. You control your bank (capital) and your financial destiny. How much ROI is that worth?! A ton in my book. I was a bit angry when I was introduced to IBC about 3 years ago; I was 54 years old... why didn't I hear about this when I was 24? My life would have been totally different financially! Although IBC isn't an investment, you can use your pool of capital to invest. I use mine in rental real estate. So not only do I get my real estate ROI, but my business helps my IBC policy get bigger because I'm a responsible banker like Nelson talks about. And, I keep getting those IBC dividends even when I have policy loans out and no matter what the market is doing. It's awesome! If there is one small "catch" to IBC (and it's not really a catch), you have to have the wisdom and the discipline to build your banking policy by paying the premiums over a few years. But. It is soooooo worth it! Not only will it change your life, but it will change your children's life because you can pass on wealth to them. And, if you teach them the concepts they can "stand on your shoulders" and continue the wealth building process for all the generations of your family!
@@glennnicholson2545 I had never heard of Nash until this afternoon. I have been interested in the concept of “Infinite Banking” and I was JUST about to pull the trigger on a Nelson Nash book, “Becoming Your Own Banker” today. Is this a good place to start to find a deeper understanding of what you’ve laid out here?
I'm in my second 20 year term policy and I've always invested because I had the understanding that at some point a term policy could potentially be more than I would like to pay. I can say that most of the people who I know have actually tried to cash out their whole life policies after paying into them for years were very disappointed. I have 10 years left on my current term policy and my investments and saving are triple and growing daily what my term policy would payout. I'll check out your Infinite Banking videos. Thanks
IBC and invest the cash value. I can access my year 2 base premium dollar for dollar at about 97%, so the only "loss" is in year 1. It's permanent insurance with a tax free death benefit. Well worth the year 1 cost imo.
I love stumbling upon honest ppl & honest channels! When watching Dave he was too against "infinite banking" And now I see he didn't talk about it @ all🤔
I just want to say that you all have done the greatest job in countering Dave's video. Over the years he has done several videos on Whole Life and Infinite Banking and all he does is bash the concept without matching apples to apples, just like you all did in your video. Others have done counter videos to him, but what you all did with playing the video and talking about it, and explaining where he goes off the rails is great!! I loved the video and loved how you speak clearly that Whole Life is not an Investment Policy it is an overage dividend policy that benefits me, where Banks and the IRS give you nothing for the money you have more or less lent to them. Again, Great Job! You have a new fan.
I asked a question and I never got any reply: can the loan borrowed from the system be used to offset tax? And is it regarded as loan with the Credit agency?
Love the way you respectfully disagreed with your teacher/mentor.. you both are a class act. Me, not so much.. Dave got people ouy here pinching pennies & scared to invest a dollar. That caveman concept is played out. Keep educating.
If you can afford to pay for a whole life insurance policy, you can have enough sense and discipline to buy term and save and/or invest the difference. Selling whole life insurance as defacto forced savings that benefits the insurance company WAY more than the individual.
Yes!!! This makes the most sense. The whole point of investing and saving for retirement is to care for your spouse and children. If you lack discipline, this whole IBC thing doesn't make sense and seems complex for no reason.
As you know and experienced with Dave Ramsey is to help people get out of debt, Term allows you to use the difference to help get out of debt. I enjoyed listening and learning about infinite banking.
This is great content. I would add, that very few people even make the connection between term and whole life. Meaning, the reason they choose one or the other is not based upon what they can do with the savings on term life. I think most people buy term life because, first of all, it's the most common. Secondly, it's what MOST financial advisors advocate for. People know they need life insurance. It feels very complicated, so they pick what's easiest, term, because it's so available, and often don't realize that they could outlive the term of the policy, then have to start a new one, at an advanced age, which will cost them more and have less value. Also, if the money is invested, once you've paid the taxes on your dividends, how much does it really amount to? I'd rather be able to borrow from myself, for free, than have to pay interest and taxes on pretty much EVERY other source of Income....I'll be binging on these vids....
I must say, this is most entertaining and informative explanation that I’ve seen of infinite banking over the past few days of me learning about this. I have just one question that most videos don’t seem to address… how long does it take for someone to be able to access the loan or cash value benefits of their whole life policy before they can truly begin to implement the infinite banking process? From my very brief research it’s my understanding that it could take many years before being able to actually utilize your policy as a vehicle for infinite banking….? Can you only access the true benefits sooner if you heavily fund your policy with cash deposits? It would be awesome if you two could please address this gap of information? Thanks!
It depends on the insurance company and how the policy is setup. That's why most people complain about not being able to see the cash value benefits in the early years because the policy is setup in a certain way. I have a policy that I was able to access cash value within year 1.
It definitely depends on how the policy is structured. The one I'm working on will provide me access within 24hrs. Not all of it but most of it. Also, the less % access you have to your CV, the more the agent is getting in commissions. Just keep that in mind. 90%-95% access is a great policy.
if your life agent sets it up properly you can take it out as early as a couple days to a week later. Up to 85% right away and then more and more and more as each year goes by. The infinite banking is incredible awesome and the best financial tool I've found ever
Term Life when used as intended is the Best Coverage you can buy for it's intended Purpose. Each type of Whole Life Policy is the Best Coverage you can buy for it's policy's intended Purpose. Each Universal Life Insurance Policy is the Best Coverage you can buy for it's policy's intended Purpose. Each Index Universal Life Insurance Policy is the Best Coverage you can buy for it's policy's intended Purpose. Everyone one of these different types of Insurance Policies (Term/Whole/Universal/Index Universal) is an indication of the chassis that policy is built on not a definition of how the policy is designed to perform or it's intended Purposed Outcome. A Toyota Corolla and a Shelby Ford Mustang are both built on a car chassis but they ain't built the same, won't perform the same, and are purchased for different reasons.
New to the channel. I fully understand both you and Dave. Here's the thing. When I was originally searching this banking concept, I was led by the nose through words like: Dividends Investment Interest Rate Etc. No one ever explained it to me the way you two did. The concept is difficult to grasp when explained by someone trying to make the most commission possible per prospect. To put it blunt.... It's a sleazy process. 😒😒😒😒😒😒 I'm just glad it was explained properly for a change and now, I am fully prepared to give this idea a second look. 👀 Tha k you for your dedication and teamwork! I can't wait to show Letoya! 😁
It’s amazing to see Dave talk about a subject he knows nothing about. Fact is if you are not buying something from him he is going to bash it. Do your research and the fact is that IUL and Whole life can be great options to warehouse your money if the policy is designed correctly. Keep up the great work you two!💪🏾
I had to click on SUBSCRIBE. There is something here, and I am willing to see where the information leads me. My 1st takeaway is the idea of using my whole life policy as my own personal line of credit. Next stop is learning about Infinite Banking.
@Wealth Nation What does the request look like if you apply to use your policy as collateral for the insurance company to give you a loan "I request to use my policy as collatoral to get a loan?" thanks
If someone is borrowing from the Cash Value of a life insurance policy & paying a 6-8% interest rate what would the point be to do something like that when they can take out a mortgage on their own for the same rate? I'm having a disconnect & trying to see what I'm missing here
Thank you for addressing this! So true that buy term and invest the difference is more talk than action. Thanks so much for your education on Infinite Banking. So much more people need to know about this alternative!
what's wrong with buy term and invest the rest. i've accumulated enough to be put in the dirt and take care of the family by doing this. whole life is a good option, but clearly the sales folks want to promote the whole life route. That's why there are all these bells and whistles that come along with it.
What's crazy is the our grandmothers was trying to show us this long time ago. I remember it when the insurance man used to come to the house in the brown suit back in the day my grandmother never had a job but was a hustler selling dinners, candy, customized clothes and she would never miss a payment and if anybody needed something she had it.
Dave never gives people options. There's only one way. No mention of using business credit, a credit line, etc. So naturally Infinite banking won't be mentioned.
He explains why. It's a fake dividend. I agree his credit card stance is a little ridiculous, but he backs up his stance with data. You spend more if you use plastic, you physically feel it when you dish out your cash. We're moving to a cashless society, so it's outdated advice, and credit cards are much safer than using your debit card, but Dave never changes.
I'll put it this way. If you want to be lower-middle class (and there's nothing wrong with that) for the rest of your life, saving currency that losses purchasing power faster than any savings bank account could ever make you back, and you like having your hard earned currency tied up for YEARS without being able to pull it (such as in a 401k, for example), by all means listen to Dave Ramsey and Susy Orman. If you want to build lasting generational wealth, you have to think outside the box, and listen to these 2 👆👆 who know what's up and how to take charge of your financial destiny, one of those ways being the infinite banking concept, used by high net worth individuals. Thank y'all for doing what you do and for the great videos! 👍
I have my share of disagreements with Ramsey, but let's be clear here. If you want to stay lower middle class or worse for the rest of your life, then listen to Wealth Nation. In a nutshell, these two are telling you to put a ton of money into a whole life policy so that you can borrow YOUR money that YOU invested and then, essentially, pay a recurring penalty for using YOUR own money until you put back what you borrowed plus the interest accrued. And keep in mind that that penalty is going to be a higher rate than the rate at which your cash value will grow. You think that's the way to build a high net worth and lasting generational wealth? Don't be fooled by the fact that rich people use the infinite banking concept. They do that because they were already rich to begin with, not because doing that makes them rich. When you have the money to take out a whole life policy that's $6K or $7K a month and then fund it substantially even beyond that, then yes, that can have its perks. Even with the comparatively modest returns of a whole life policy, you will still have substantial cash value increases that are also stable. You will also, actually, have the funds to use infinite banking in a meaningful way. You, actually, would be able to borrow $500K from your policy to buy a house and pay the 5% or so interest rate to your insurance company (good luck with paying $25K to your insurance company every year until you put back the $500K you borrowed from your policy if you even had that much to borrow in the first place if you are middle class), and that could make more sense than selling off $500K from your other investments and paying taxes on that. But, if you only have the money to take out a whole life policy that's $6K or $7K a year, then none of the things in the previous paragraph will apply to you. I am not opposed to whole life if it's pursued in a sensible manner. The proper way to view whole life is to view it as a back up plan. The majority of one's investments should be in index funds that broadly track the market (like an S&P 500 index fund, for example), but whole life can serve as a back up when the market is down. The majority of one's life insurance coverage should be through a term policy, but whole life coverage can serve as a back up in case one lives long enough to not only outlive his/her term policy but also exhaust most of his/her savings. But using whole life to "be your own bank" is ludicrous and a great way to screw yourself financially if you are not already rich.
When you borrow money from insurance company, do you have to pay interest one time or multiple times? Or onetime fee? Instead of that could we take out the cash value that build up in years with no interest ? I have many doubts, how can I contact you to clear those doubts .
I'm really trying to understand this, could you clarify a point? Can you borrow from an insurance policy's cash value? Meaning, can you pull from the cash value (correct me on the term) from the insurance policy without paying an interest rate, similar to a savings account?
I want to challenge you statement that whole life is expensive. At first it is, but soon enough with IBC you break even. The CV then moves ahead of premiums so that you get back more that you contribute. So at that point there is no net cost. Yes when you contribute, cost a comes out but CV is still more than you contribute. And if you go reduced paid up, the CV continues to grow without premium. So it doesn't cost you anything. So then in retirement you don't need term insurance which would be extremely expensive. You have a paid up policy that continues to grow in CV and DB. You may not have paid into the policy for 20 years.
marriage counseling is very important, good to have someone to meet with prior to being married to find those common ground areas, especially when things get tough, and they will with any marriage
Good explanation guys! You always have to do your own research. Opinion is not a fact, opinion is a person's person view point. Dave Ramsey has a great program, but all his philosophy shouldn't be received as gold. For example he talks against credit cards. You have to be disciplined to use credit cards for your benefits.
You got debt, listen to Dave! You wanna do infinite banking, listen to Carmen and Darius! Dave is smart and valued and his ego has surpassed his knowledge in the “whole life insurance” policy. It’s ok Dave, you’re good just stick to what you know. 💪🏽💯
Great stuff. A couple of terms that have to be addressed: 1. Cash value earns a compounding dividend, not interest. It’s easy to confuse the two, but for clarity, it has to be stated. 2. Non-direct recognition/Direct recognition. These two are different & can affect the compounding dividend effect. Not all companies that IBC practitioners use will have these qualifications. Necessary research on would be adopters is paramount. Love, the breakdowns & content. Liked & subscribed.
Cash value is not the same as death benefit. Most cash values don’t reach death benefit level until year 121, if that. In order to get there one has to load up on PUA. Dave & other naysayers are spreading disinformation (unintentionally).
Hello, what is the best way to increase cash value especially for an older person considering this financial option. Open two policies? Or add to the deposits over and above the "Cash Value". In my case cash value is so small because of my age i guess. But the 2550 value will be immediately available. :)
@@1onaroll maximize the first policy by loading up the PUAs, if you can manage the overfunding, then take out a second policy. I’d recommend the second policy be on a younger close relation, this way you can utilize the lower premium at a 90/10 split. Note, with the recent 7702 changes, most of the top mutuals are guaranteeing 2 - 3.75% versus the previous 4%; therefore, it’ll take more CV IOT realize the same or better gains.
@@applechili2848 Thank you AC so much, as soon as I translate the "code" I will get full understanding :) :). I am actually changing careers (late in life) soon and want to secure a license to sell these thru the party that is introducing me to this wonderful product so I have to Decode and learn at the same time. But I so appreciate the details in your response. Thank you. Do you have a channel or platform so I can follow? It is all new to me (sadly decades later than I should have known of this vehicle) I will be learning and growing and helping my children. So your suggestion to do just that was a relief too. Please forward or message your undertakings or your channels if any. Many thanks and continued success to you. See my question to Wealth Nation, you touched on everything. Namaste
@@1onaroll Thank you so much. Also, belated congratulations on your newfound journey. As of right now, I do not have the appetite for content creation; however, maybe/possibly in the future, I may choose to endeavor. In a past life, I was a producer; however, I chose to relinquish my license IOT better focus on my wellbeing. If & when you decide to venture down this path, know that IBC is a concept that is caught, not taught. There are too many naysayers & people set in their ways, or chasing pie in the sky, too focused on chasing the fast alluding buck, to concentrate on old dusty CWL. It’s a niche market & you have a lot of player/practitioners operating in this sphere…mostly to make a buck. I’ve figured out a way to 5x without relying on the customer, without increasing my income & by working within the means of my IBC. It’s that powerful! How did you learn about IBC? After all of these years, what made you decide to acquire a policy? What were your reasons for not obtaining a policy? Define what does pay yourself mean? I find the aha moment the most exhilarating & shin kicking moment of the entire experience. The second mind blowing moment is when you find out what you believe to be it’s capability. Right now, that seems to be where you are, on the cusp of shattering another plateau. Believe, me, there will be plenty more! I’m excited for you & whoever you are able to bring into the fold, & I look forward to hearing/seeing your future progress!
it is a scam unless you have the exact type of whole life policy written to benefit YOU. Unfortunatley, most licensed whole life insurance agents don't write polices with your best interests in mind, they write them for THEIR best interests.
A lot of people want a good lifestyle , but the way they spend can't see them getting that lifestyle anytime soon , the rich invests more and spends less
Investing in the right things matters, I actually invested in the stock market and also the crypto market , trust me crypto trading is more profitable than stock investment
Buy silver, buy gold but don't forget to acquire as many crypto as you can. Mark these words , someday people will regret not having at least one satoshi in their wallet
Whole life insurance benefits those who do not want to hassle with investment in securities while they are young. After paying off the expenses associated with death, the ROI can be better with mutual funds (high risk) than a low interest bearing death benefit. The bottom line question seems to be on whether it is better to have hard or virtual collateral available for borrowing. Of course, Dave Ramsey's approach is to avoid borrowing and stay out of debt.
Awesome job. I am on my first year and started in at 30k with IBC. When you say you recycled the money a few times what does that mean exactly? Did you borrow money or?
Dave Ramsey is good for getting out of personal debt, but outside of that I don't really follow him. I LOVE how you guys used his video to break down each part that he down played and showed the public how he was wrong with using correct information. When you speak to really successful people most of them have whole life policies and use as infinite banking. I learn from the people who have the lifestyle that I desire and they use infinite banking. Thank you!!
Both you guys and Ramsey are saying essentially the same thing. You're giving the positive spin while he's giving the negative spin. 5+5=10 but so does 12-2. Dave is a believer in buying cheap term insurance to provide for your loved ones should you pass early. He's also a believer in doing your own investing rather than tying yourself into an expensive monthly insurance payment. I happen to agree with Dave on the issue of insurance and whole life is just a bad idea for ME. However whole life insurance is a great option for a lot of people. The truth is that insurance used to be the best way for average folks to gain interest on their money and beat CDs or savings accounts. With mutual funds, online banking, and ETFs it's not the only game in town. Depending on your goals it may be the absolute worse option or it may be the best. For the uninitiated it is one of the more simple ways develop some wealth.
Ramsey is not saying the same thing at all... Having an investing strategy is ENTIRELY different than strategic utilization of whole life insurance. To be clear, whole life insurance is not a market based financial product. The performance of these policies is based on interest rates - again, interest rates... not market returns - thus making whole life a non-correlating asset when compared to market based investments, and more appropriately comparable to other non-correlating assets which are also interest rate driven: bonds, CD's or fixed income securities for example. It is ignorant and/or intellectually bankrupt to conflate whole life insurance with investing, yet this misrepresentation is done time and time again. I do acknowledge instances where buying whole life was a bad idea, but the vast majority of such accounts that I read about can be attributed to insurance agents who either wittingly or unwittingly sold badly structured contracts that aren't aligned with people's goals. The truth is that insurance can still be the best way for average folks to gain interest on their money and beat CDs or savings accounts. However, due to historically low interest rates it may simply take longer to do so (all things being equal) when compared to decades past. Mutual funds and ETFs are equities... again, not comparable to life insurance... so any comparison with life insurance is obviously an invalid one.
✍🏾 Are you ready to Start a Policy? Complete our new client application.
bit.ly/WN-New-Client
I like and respect that you two are students of Dave Ramsey and still trust a lot of what he says but you think for yourselves and aren’t afraid to say it how you see it - it’s so much better than when people follow people 100% blindly just because they like a lot of what they say - great job!
I get your point fully however I still stand by my statement that Dave is basically too abusive to anyone whom doesn't follow his program to the letter ! I think Jim Cramer would be better guy to follow as he's consistently wrong on his investment advice ...... so much so that you could reliably go 180 on his advice & make a fortune .........
William Richard James Nicholson my comment was to the creators of the video
Dave Ramsey is a quack
@fireindahole my point had ABSOLUTELY NOTHING to do with saying anything positive about Dave Ramsey 😂
@fireindahole but on another point I have come to realize that these two are not smart at all at the very least orworst case scenario they are intentionally deceiving people - whole life insurance is a TOTAL scam and ripoff and they are selling and benefiting from the ripoff
Dave said don't buy gold in 2004 and I listened to Dave in 2004! I wish I would have ignored Dave and purchased gold in 2004.
@@r.rodriguez4991 sadly I purchased two rent properties, I still regret not buying Google in 04..I had just received a 54k settlement check and listened to a CNBC analyst about Google was a terrible IPO and was not a good buy so I purchased investment real estate, that didn't appreciate like Google.
@@r.rodriguez4991 very true I plan to live in the moment and enjoy each day.
I thought about buying Bitcoin when it was at $170. Instead, I got a fraction when it was around $9,000.
This makes no sense. People who listen to this advice should really seek a CFP vs Insurance agents who make substantial commission based on selling these policies and isnt a fiduciary.
Dave is great for helping or should I say motivating you to pay off debt after that completely ignore Dave and educate yourself and get other perspectives.
Yup, Dave, I love Dave Ramsey for the good he does, but he is dead wrong here,
@@DavidNellTheHarbingerI just have never heard of a millionaire or billionaire saying they got wealthy by infinite banking
How much is all the fees, commissions, costs, and ALL PROS AND CONS related to infinite banking vs whole life insurance vs investing your money in a self-directed ROTH IRA, or a self-directed ROTH 401k Plan? WE NEED CLEAR TRANSPARENCY IN COMPARING EVERYTHING!
Beware of high commissions and fees!
I drank the DR cool aid too and I still respect what Dave does but I agree with you guys. Another thing that is happening with Dave’s advice is the 60 and 70 year olds who outlived their term policies and never really invested and now can’t even get a term life policy.
To be fair, these people have their own version of Kool-Aid as well, and it's even worse than Ramsey's version of Kool-Aid. I don't agree with Ramsey about whole life, and I think he doesn't seem to realize that reality is a bit more complicated than simply investing all your money in index funds that broadly track the market. But I can see where he is coming from at the very least, and to be fair, whole life, often, is a bad idea under certain circumstances.
On the other hand, Wealth Nation's advice is kind of ludicrous to be honest. So, you are going to put a ton of money into a whole life policy so that you can borrow YOUR money that YOU invested and then, essentially, pay a recurring penalty for using YOUR own money until you put back what you borrowed plus the interest accrued? Sure, you don't have to pay taxes the way you do when you withdraw money from the market, but the catch is that you can expect higher returns from the market even after taking the fees and taxes into account. They also promote this idea that you can borrow your cash value, invest it, and then put back the amount you borrowed plus the interest accrued and keep the difference. There is a big problem with that, though. You can expect the interest rate on your borrowed cash value to be 5% or so, which is about the return you can expect from the market after fees and taxes on average, so you aren't going to make any significant profit that way if you even do make a profit.
Sure, I don't completely agree with Ramsey, but his advice isn't quite as ludicrous as this notion that you can get rich using whole life (don't be fooled by the fact that a lot of rich people take out already expensive whole life policies that they fund even further - they do that because they were already rich, not because doing that makes them rich). I would say the intelligent way to treat a whole life policy is to treat it as a backup and nothing more - one should get a whole life policy where the death benefit is no more than three times his/her income and not fund it beyond the required premiums.
...and with that being said, if that individual was not able to invest in a separate account, maybe they were strapped for cash. But, yes, not investing with a term policy is a risky move.
You're supposed to self insure at that point.
By the time you’re 60-70 you shouldn’t have any dependents so why would you need life insurance?
I would prefer to see some illustrations to show in money terms what happens in infinite banking vs other types of policies.
They don’t mention that in a bank you can borrow hundreds of thousands of dollars, example is when we bought a house, we borrowed 600k without collateral, with “infinite banking” you can only borrow 80-95% of your cash value. So you mean if I want to buy a house I have to somehow get 700k to give to a life insurance cash?
Total finesse 😅😅😅
I am totally grateful for Dave Ramsey and FPU because I am a graduate and my dad was even an instructor. That being said if I followed exactly what Dave said to do I would have been left in a foreign country without any access to my own funds. I have traveled around the world 3 times yet he said there is no reason for a credit card.. I've had my bank shut down my debit card for 3 days without any way to contact them. Sorry Dave, I choose not to be homeless in Doha. Dave shouldn't have such a smug attitude about things he really hasn't researched. Dave 90% awesome thank God for him and 10% Insane and needs to zip it.
I have a similar outlook / story. I think Dave’s advice and his ideas are great for people who have NO FINANCIAL DISCIPLINE. It keeps people in line, keeps them high on the FEELING of not being debt (which is actually a financial tool to those who know how to use it), and keeps people in their tax bracket (not an inherently bad thing).
The gazelle mentality is great for putting people like me to into a stage where we can now think more with an ABUNDANCE mentality, and prosper, without sucking down beans and rice every night.
I would not say Dave need to zip it because many people need to learn The Basic Financial Knowledge. Dave will not gave you an OUT of what he is teaching. Dave software (lessons) are taught in our schools to all of our children. No one is teaching the children at home, so the children starts financial education with Dave. Oh, by the way no one has taught their teachers either. As that child financial education grow the child will make changes along the way. Some changes will be good and some not so good, but good common sense and basic financial education will be a savings tool for a strong financial foundation. (small talk)....
@@vanessajackson2889 hey can you recommend for people that would like Basic Financial Knowledge a good UA-cam channel or website to start? Would appreciate it
It’s a different world now
Great information. I work in the death benefits industry and you are spot on. There is however, with most policies a time frame before you have access to the cash value option of these types of policies. Most times people take out the cash value amount to cover medical expenses, hospital stays, etc. It's more expensive but the benefits from using these policies vs. Term life are great. Make sure to do your due diligence in selecting the best company for this option. ALSO, if the loan isn't repaid at the time of death, it is deducted from the remaining balance of the policy unless you select riders that will provide additional coverage.
Down with Dave!!! Thank you guys for explaining his video. Having clarity on insurance from level headed people is what the people need!
Jus stumbled on your channel. Very informative and enjoyable. Thank you.
He did the exact same thing when he compared a HELOC to a traditional mortgage (to pay your home off faster). He explained an amateurized loan using simple interest. Two completely different things. His suggestion was to make extra payments, not replace one loan with another (No matter how financially beneficial).
I really struggle with these people because they do not do a great job of simplifying what infinite banking is. I understand the theory but the practicality is not well described in none of the the videos. Each is an hour long plus...
Thank you for simplifying your explanations… super helpful video!
Just found you folks...better late than never! You two are crystal clear and that is a godsend. Thank you.
Traditionally we have two options when we buy anything :
1)Finance it
2)Pay Cash
Dave Ramsey is the cash guy. Obviously that's better than financing and paying interest. But paying cash is self financing. You lose the ability to earn on your money when you pay cash. Infinite banking gives us a third option, pay cash while still earning on your money.
3) Infinite Banking
Great points. Paying cash is foregoing the ability to make an interest payment. If people understood how much interest they were paying lenders, they would be shocked. Best to pay it to yourself and keep it in the fam.
I totally agree !!
Thank you all so much
@@topgunbobby you’re paying interest to yourself and giving an insurance broker a commission. Why not cut them out and just save your money.
Insurance companies love it when you overfund your policy and increase your cash value. And you can believe all you want that you are "paying yourself" when you pay interest on your loans. Guess who gets to keep 100% of your cash value when you die - the insurance company! All your heirs get is the death benefit minus any outstanding loans. The little talked about commissions and fees sap the cash value and result in pathetic growth for WL policies. Great investment, right? Try comparing the net worth results after 10 years of two strategies: one with whole life and another with term insurance and the difference invested in a good mutual fund. The latter will come out far ahead. That is why Dave Ramsey is against WL policies and "infinite banking" - because there are much better alternatives. His point is: what would you rather have? $500,000 in a cash value that you can borrow against or $1000,000 in a fund that is all yours to spend as you like without having to borrow a dime.
Yeah. Dave hates debt/credit. He thinks it is evil. But long term, you are doing yourself a disservice to you and your money buying everything cash and paying debt as quickly as possible. You end up losing the ability to let your money compound and that is extremely important in wealth building. It is important to do the math when it comes to whether or not financing or cash is the best option in the long run. Cuz taking 30k to buy a car instead of leaving it to compound isn’t generally the best idea. Of course that doesn’t mean everything needs to be on credit, but we do need to prioritize letting our money compound. And Dave’s way does not really do that.
If you invest in your mindset , skill sets and network you wont have to cut back on expenses and live like a pauper . Your mind is your greatest asset there is no way you can invest in it coupled with taking action and not increase your income. I'm not sure my comments are relevant to this video , I was reading the comments.
This video was really good. Great explanations. Easy to follow. Thank you both.
Subscribed. YES. Someone who can speak intelligently to Dave. And why wouldn't you want a repayment of your own money and AVOID taxes!!? Yes, businesses are in the business to make money and I would much rather them "over charge" in order to ensure they cover their costs and then return that premium. Yes, that is what the IRS does (unless you know how to not overpay them and allow you to grow your own money). This is the type of education I want to bring forward as well. I got into World Financial Group (WFG)/TransAmerica and am ready for a change. Is there a way to just pick y'alls brain to see how you got into all this?
"And why wouldn't you want a repayment of your own money and AVOID taxes!!?"
Well, why would you want to pay money to be able to use your own money? If you borrow $20,000 of your own money from your whole life policy at a 5% interest rate, you will owe $1,000 to your insurance company one year from today. If you put back the $20,000 into your account and pay the $1,000 to your insurance company, then yes, your whole life cash value balance specifically will be identical to what it would have been if you had never borrowed from your own policy, but then your total balance outside your whole life policy will be $1,000 less than what it would have been otherwise. So, that $1,000 was at your expense and wasn't something you just paid to yourself.
The second part of your question is valid, but here is the catch. You can expect higher returns from investing in index funds that broadly track the market (S&P 500 funds, for example) even after taking the fees (which are much lower than the typical 5% interest rate that you pay to withdraw from your whole life policy and continue to pay if you don't put back the money your borrowed plus the interest accrued) and taxes into account.
This is not to say that I oppose whole life in its entirety. Whole life can make sense as long as it's pursued intelligently, and the intelligent way to look at whole life is to see it as a backup plan. The majority of your investments should be in index funds that broadly track the market, but whole life can serve as a back up when the market is down. The majority of your life insurance coverage should be through a term policy, but whole life coverage can serve as a back up in case you live long enough to not only outlive your term policy but also exhaust most of your savings. That's why I recommend getting a whole life policy where the death benefit is no more than three times your income and not funding it beyond the required premiums. THAT is the sensible way to go about taking out a whole life policy. Trying to use a whole life policy to get rich as these two advocate, on the other hand, is just going to lead to heartache for you (don't be fooled by the fact that a lot of rich people take out already expensive whole life policies that they fund even further - they do that because they were already rich, not because doing that makes them rich).
IT’S ALL A SCAM UNTIL YOU NEED IT!!! 🤣🤣🤣🤣🤣. I love that because isn’t it crazy that it ain’t a scam when it’s working for the ppl it works for? Thank you both for your videos. New here 👋🏽
Your borrowing money from yourself and paying an insurance broker to give you it… how is that not a shit product
@@keondakuhhh69 you're blind as a bat
Say it again sis..... scam until you see the truth
The problem is that you don't seem to understand what exactly it is that's working here. If you save and invest your money in the market and then withdraw $25,000 from your investments to buy a car, you would agree that you are simply taking money YOU saved and invested to purchase a car, right? Well, that's literally all you are doing when you borrow money from your whole life policy. What's "working for the people it works for" is that they are saving and investing, not infinite banking. And it is a scam in the sense that your whole life policy will provide lower returns than the market on average even after taking into account the taxes and fees associated with investing in the market, and then on top of that, you can expect to pay a 5% or so interest rate to borrow your own money out of your whole life policy. Using whole life as a backup plan (it can serve as a backup when the market is down or if you live long enough to not only outlive your term policy but also exhaust most of your savings) is certainly sensible, but using it to "be your own bank" is a great way to throw your hard earned money away.
I will say this, though. If you don't have the discipline to save and properly invest in the market, then by all means, go the route of taking out an expensive whole life plan that forces you to put a lot of money in it and basically forces you to put back the money you borrow from it. After all, some savings are infinitely better than no savings.
@@keondakuhhh69your not borrowing your own money! 😂😂
Whats important, especially with finance, is to gather information and decide what's best for YOU. Thank you guys for putting out the information! Extremely helpful!
That is why it’s called “personal finance” What works for one person may not work for another. Dave (love some of his advice too) but he is one of MANY people in the financial arena. Due your own DUE DILIGENCE and do what works for you.
FPU was helpful for reinforcing discipline and removing roadblocks. I’m still working on how IBC can work for us and our goals. The thing that clicked for me is that term is about protection and a whole life policy and IBC is about leverage. Borrow against the whole life, purchase an asset, pay back the loan. Wash, rinse, repeat...the place where people get in trouble is, like with any credit, not having the discipline to manage the leverage. Am I picking up what you’re putting down?
I still need to learn what a properly structured policy looks like for my wife and I to reach our goals, but your content is really helpful!!
You guys are awesome... the best info outhere. Keep it up . Great effort and content.
I get why people feel the way they do about a whole life policy, but I think they fail to look at the whole picture. You guys actually did a good job of explaining this. My wife and I both bought whole life policies 40 years ago and glad we did. The banks pay me literally pennies every month in interest payment on my accounts. Much less than the interest on my cash value.
You're bad at investing then, if you depend on bank account interest to build wealth.
@@paulmyers2912exactly, he got finessed
😅😅😅😅 you got finessed
"Dave Ramsey is rambling and deflecting" goes on to ramble and deflect 😂😂.
The key to Financial Advisor is Series 65, 7, 6. The appropriate certification is CHFC, CFP, CLU. So, Ramsey is correct he just needs to be educated on the qualifications. There is space for whole life in a sound, solid financial plan but not how it's presented. Your clients can maximize their savings with WL if they have maxed out their 401k, 403B, Pension, IRA, ROTH, or whatever. Then they can reallocate some funds to a well structured WL policy. The insurance company is a loan shark. They're charging you to borrow from yourself. Please stop, if your client has 10g and no emergency savings, why encourage them to put it in a WL policy and get charge an internal rate of return and deplete their principle, only to wait and take a loan out and get charged interest on the balance. It's not sound for a motivated saver to lose money.
You guys were extremely tactical, and merciful to Dave Ramsey. Very professional defending your position about the tool. I would remind you though (not saying you don't know this already) insurance is largely in part about those we leave behind...i did say in part...
I 100% understand and embrace the concept Infinite Banking. A Whole Life Insurance Policy is the TOOL/MECHANISM that is used to facilitate the process of Infinite Banking. Not Infinite Banking itself.
I think once people are crystal clear about this, the Infinite Banking CONCEPT makes much more sense as an option and in my opinion becomes painfully obvious as your next step of quasi removing yourself from the "traditional " banking and financial system 👍🏾
At the end of the day - a cat is still a cat!! Whole life is still whole life!!! And at the end of the day, you will lose the first 2 to 5 years of your "savings" to the agent that signed u up for the policy! And the cash value will ALWAYS be a loan, unless you cancel the policy!
Where's the win?!?!
The couple here isn't talking about a traditional whole life policy! They are talking about lump sum policies!! Where you also lose and whatever is available is STILL a loan!
@@blessedb21 Exactly! Don't get me wrong. I am not opposed to whole life if it's pursued in a sensible manner. The proper way to view whole life is to view it as a back up plan. The majority of one's investments should be in index funds that broadly track the market (like an S&P 500 index fund, for example), but whole life can serve as a back up when the market is down. The majority of one's life insurance coverage should be through a term policy, but whole life coverage can serve as a back up in case one lives long enough to not only outlive his/her term policy but also exhaust most of his/her savings.
But using whole life to "be your own bank" is certainly ludicrous. As you pointed out, it makes no sense to put a ton of money into a whole life policy so that you can borrow YOUR money that YOU invested and then, essentially, pay a recurring penalty for using YOUR own money until you put back what you borrowed plus the interest accrued.
@blessedb21 you might want to look at the video where they explain their process and how it works because the win comes in where you can actually borrow against the policy and use the money to invest in other assets to grow your capital the "loan" is not a traditional loan because you don't pay any interest on it until after 12 months also the money is still compounding as long as you don't withdraw money that's not yours so
Anybody thinking about buying a whole life policy to do the "infinite banking" should compare it to a "normal" bank to see if that really makes sense. Below, I list the benefits I get from my "normal" bank. How would your "infinite bank" compare?
My bank (Ally) did not need a salesman to sell me my account.
My bank, where I "store" my cash, does not charge any commissions. I "break even" on day one.
My bank has no fees to sap the effective interest rate - currently 4.25% (2023).
At my bank, if I want some of my money I just request it and they give it to me. No fees.
If they send me money from my account, there is no need to pay it back to my account, but I can if I want to - interest free.
If I don't pay it back, there are no compounding interest charges against my account.
At my bank, if I want to close my account, they give me 100% of my funds. (No surrender fee.)
At my bank, I earn taxable interest. That is because my account experiences real growth of money I can readily spend.
At my bank, I will always have taxable interest income because I am able to pull out MORE than I put in.
(The same could apply to "infinite banks," but you're unlikely to ever pull out more than you put in.)
At my bank, if I want a loan, I don't have to self fund it first or wait 20 years to build up a cash value.
At my bank, all loans are tax-free. (ALL loans everywhere are tax free!)
At my bank, if I take out a loan, the maximum amount is not tied to some percentage of my savings account.
At my bank, if I get a loan, my savings continue to earn interest unaffected by the loan. (WOW! Just like an "infinite bank.")
At my bank, if I die, the bank does not keep the funds in my account. My designated heirs get ALL of it.
My bank does not provide a death benefit. (OMG!) I don't want or need one, and they don't make me pay for it either.
I'm ready to hear the benefits of an infinite bank as they compare to what I've listed above.
@@kabaldalo6310you pay interest the whole time not just after 12 months 😅
Just came across your , appreciate your temperament. What individuals need to hear are the facts about the numbers, the cost and expense, the process of getting the loans from the Mutual Company, and how we pay the loans and premiums when taking a loan for an investment... You two are lovely People.
But can you only access (borrow) up to the amount you have in cash value? If you have any built up?
No one is saying you should keep your money in the bank. You can keep it in the brokerage account and get the loan against it (“margin”)as well, to invest it. That way you are investing your principal plus margin in the stocks of your choice according to your risk tolerance vs in whole life your principal is growing at a very conservative slow rate with the multiple hidden fees. Plus in the brokerage you have an instant access to your own money without having to wait 7 years to just break even.
Exactly what I said to an IBC guy. This stuff doesn't make any sense. Sounds like insurance salesman BS
Also write cover calls (for every 100 shares of a stock you own).. When you buy call options, you're buying them fron a stock owner. Plus you still keep the dividends..
There is no one size fits all. Who says you have to wait 7 years? cash avaiabilitydepends on how the policy is set up.
You've just earned by my subscription! Thank you for challenging Dave Ramsey, some of his followers are in a cult. It bothers me that some of his advice borders on unethical.
For sure! Dave has gotten rich off of telling people basic ordinary stuff...Who is scamming who? He knows nothing about leveraging, he should just admit that and stay in his lane. I never cared for him, with his smug ass! lol
I actually have "term life" written on my white board because the Ramsey team recommended it but I wanted to whole life so that i could borrow. I was so confused that i didn't buy anything! I'm so glad YT recommended your channel. .. I'm a new subscriber. Thank You!!
😅😅😅
Dave is good for getting out of debt bad for investment advice.I graduated to finacial police and got out of debt including my home.I do use my own bank this last year to buy silver at spot price 17.00.I only use my bank for opportunities to buy undervalued assets and pay it back.
I am not getting a needs analysis approach to your presentation. I have four children pre college age , a mortgage and a monthly expense minus mortgage of $3500 . Do you think I try and fund a Whole Life policy portfolio for the protection of my family or should I have a mixed portfolio and drop coverage when kids have left the nest?
They just dropped a dime at the beginning of the video and just kept it moving. Uncle said "If you can share a bathroom and balance a cheque book then you are good to go." 😱
@Kwesi!! I know right?!? Huge nugget. Are you going to practice that?
At the beginning of any relationship; everyone is willing to share a bathroom and balance a cheque book 😂😂😂
You are on it!!!!!
I love this reaction video because you guys were so detailed and explaining the difference between life insurance and investments which is very important for people to understand that it is very important to educate yourselves and that's exactly what you guys give us. You guys were honest even with your reactions to what Ramsey was saying... Lol sometime s I think shows just do things for ratings I guess with any platform it's possible but what's important here is that the information that was stated between the calling Ramsey was not not accurate and trying to taint infinite banking when really they weren't talking about infinite banking and you guys just broken down loved it
Y'all are awesome. Appreciate you guys making this video
I'm finally understanding this concept. Thank you for making the video.
Dave doesn't talk about infinite banking, because it's about taking out a loan w/interest! YOU KNOW DAVE IS ALL ABOUT PAYING CASH!👍🏽
It's not what you know or don't know that will hurt you, it's what you know for certain that is just plain wrong! Dave Ramsey refuses to learn anything new because it doesn't benefit him.
Absolute truth about Dave Ramsey.
Yes. And the world loves him and is aware about how ppl value his opinion so in that he believes he’s a God of finance. Not that he’s not good, but he is certainly closed off in some aspects.
This part!
People misunderstand what Dave is saying. People think "Infinite" banking is a way to create infinite loans. But what most people miss with the Whole life insurance is that you have to put the cash UP FRONT FIRST. So what Dave is saying is how can it be infinite banking if I have to Bankroll the loans first.
What life insurance company would you recommend to purchased a whole life policy?
Thank you for watching! What do you think about this reaction video?
New sub love the content. Black love ❤️ ✊🏾
This was a spot on reaction to Dave Ramsey. He does not understand what is going on with infinite banking. Also, he doesn't understand that the cost are lower when you break even on your cash value. He never mentions the 4% you make automatically as well. Funny how he omits these points about Whole Life.
I would love to see you guys on on his show and explain it to him. I believe it's just that he doesnt know what it really is.
Definitely Dave Ramsey seems to me that he’s getting a cut by promoting term life insurance,
Even knowing the term life insurance it doesn’t work properly.
we have lots to lose if we go with term life insurance,
and that’s a concern because he is missed informing the community.
You both did a great job of breaking this video down and really giving people a good education of IBC! Dave Ramsey is misinformed and wishes to misinform others as well. Michelle Obama has four policy's open with IBC! We obviously know through our own research IBC is not a scam.
I agree with a lot of what Dave Ramsey say's when it comes to saving and consumer debt.. BUT.. Dave Ramsey acts like a guru that is really a specialized expert. He's perfect for making the most out of scarcity mentality. That's not hate, it's just a fact. Holding on to every dollar you manage to earn is a practice of scarcity. Those with real wealth do not operate this way. When you truly understand currency and products like the whole life insurance policies, coupled with IBC, you will understand that money is abundant, meaning there is no reason to be afraid of your resources running out.
How much is a whole life insurance policy I want to sign up
@Rob WOW! Speak on it!! 👊🏾 What did you take away from the video?
@Don’s it depends on your age... join our community and watch our FREE masterclass to find out more information.
Rob well said!
Wow!! Thanks for your input. I agree with this💯
In south africa ,we can't access the fund for that purpose, because it is not called life insurance but life cover and only beneficiary access the money on one's death
Thanks your for this information and video. What kind of camera ya'll use?
I especially like what you say at 33:30 and 33:40. Infinite banking concept (IBC) is a concept. It can be done with any pool of money. Dave doesn't understand that. It can be practiced with a savings or money market account. I love Dave and, like you, owe him much because he taught me much on the "grammer school " level of finances. But, he's wrong about IBC. Even though IBC can be done with any pool of money, a properly structured, participating, non-direct, whole life policy with a mutual company will put wings under the IBC. Yes, banks treat us badly. In fact, Nelson Nash says banks are evil. They lend money that they don't have; it's called the fractional system. The can lend 10 times the deposits they get from us. That's wrong and evil. They're the ones who make tons of money off us, not the insurance companies. Why doesn't Dave talk about that? You're also right the cash value (CV) and death benefit are one and the same. The CV is just the net present value (NPV) of the death benefit. If you die, the CV immediately grows to the death benefit. If you live to age 120, you get the CV which equals the death benefit at that age. It's guaranteed by the contract you sign. Dave's concepts are based on the Bible. And I respect that. I'm a Christian. But, I've never seen a more Godly man than Nelson Nash. I think his principles of IBC are Biblical, too. I wish he and Dave could have met before he "graduated" as he called it. Based on Nelson's life and testimony Dave would have had to respect him. I wish someone that knew Dave would explain Nelson Nash and the real IBC to him. I love Dave, but I love Nelson, too. It makes me angry to see Dave put down Nelson's legacy. I wish it were different. Sorry this was so long. But I'm passionate about IBC and respect Nelson sooo much. If you can't tell, I'm an IBC policy owner. I may have been your customer, if I'd found you first, but i'm with one of your Nelson Nash Institute compadres. Please, y'all keep doing what you're doing; it's God's work.
Thank you for your genuine response! What do you feel is the most misunderstood part about infinite banking?
@@WealthNation That is as an excellent question. I think the biggest misconception is that IBC, and by extension an IBC insurance policy, is an investment. It is NOT. It is exactly what you guys talk about... owning your own lifestyle. It is owning the banking function in your life. It can't really be compared to investing and you can't really calculate an ROI. It's all about getting and using your own pool of capital instead of using the banks' pool of capital. By having your own pool of capital you can use over and over again, you are capturing all the interest you would have paid the banks in your own banking system. That is complete genius, and my hat is off to Nelson for developing the concepts; and, more than that, loving people enough to spread the concept and principles. And you aren't a slave to the banks. You control your bank (capital) and your financial destiny. How much ROI is that worth?! A ton in my book. I was a bit angry when I was introduced to IBC about 3 years ago; I was 54 years old... why didn't I hear about this when I was 24? My life would have been totally different financially! Although IBC isn't an investment, you can use your pool of capital to invest. I use mine in rental real estate. So not only do I get my real estate ROI, but my business helps my IBC policy get bigger because I'm a responsible banker like Nelson talks about. And, I keep getting those IBC dividends even when I have policy loans out and no matter what the market is doing. It's awesome! If there is one small "catch" to IBC (and it's not really a catch), you have to have the wisdom and the discipline to build your banking policy by paying the premiums over a few years. But. It is soooooo worth it! Not only will it change your life, but it will change your children's life because you can pass on wealth to them. And, if you teach them the concepts they can "stand on your shoulders" and continue the wealth building process for all the generations of your family!
Thank you for this!
You have explained it exactly how I understood it to be when I read Nelson's books.
@@glennnicholson2545 I had never heard of Nash until this afternoon. I have been interested in the concept of “Infinite Banking” and I was JUST about to pull the trigger on a Nelson Nash book, “Becoming Your Own Banker” today. Is this a good place to start to find a deeper understanding of what you’ve laid out here?
The "ole" evil bank.
I'm in my second 20 year term policy and I've always invested because I had the understanding that at some point a term policy could potentially be more than I would like to pay. I can say that most of the people who I know have actually tried to cash out their whole life policies after paying into them for years were very disappointed. I have 10 years left on my current term policy and my investments and saving are triple and growing daily what my term policy would payout. I'll check out your Infinite Banking videos. Thanks
IBC and invest the cash value. I can access my year 2 base premium dollar for dollar at about 97%, so the only "loss" is in year 1. It's permanent insurance with a tax free death benefit. Well worth the year 1 cost imo.
If it was properly designed then you should break even by the 3rd/4th year.
Much Appreciation for clearing that up.
Your Family Bank is one of the greatest proprietors of the infinite banking strategy. Great video guys! Keep it up
I love stumbling upon honest ppl & honest channels! When watching Dave he was too against "infinite banking" And now I see he didn't talk about it @ all🤔
I just want to say that you all have done the greatest job in countering Dave's video. Over the years he has done several videos on Whole Life and Infinite Banking and all he does is bash the concept without matching apples to apples, just like you all did in your video. Others have done counter videos to him, but what you all did with playing the video and talking about it, and explaining where he goes off the rails is great!! I loved the video and loved how you speak clearly that Whole Life is not an Investment Policy it is an overage dividend policy that benefits me, where Banks and the IRS give you nothing for the money you have more or less lent to them. Again, Great Job! You have a new fan.
Masterfully Rebutted & Explained Guys!!! Keep Standing on the "TRUTH & RESULTS!!!" "Ya"ll Ain't Lyin!!!
I asked a question and I never got any reply: can the loan borrowed from the system be used to offset tax? And is it regarded as loan with the Credit agency?
I don't think it has anything to do with the credit bureau.
Love the way you respectfully disagreed with your teacher/mentor.. you both are a class act. Me, not so much.. Dave got people ouy here pinching pennies & scared to invest a dollar. That caveman concept is played out. Keep educating.
If you can afford to pay for a whole life insurance policy, you can have enough sense and discipline to buy term and save and/or invest the difference. Selling whole life insurance as defacto forced savings that benefits the insurance company WAY more than the individual.
Yes!!! This makes the most sense. The whole point of investing and saving for retirement is to care for your spouse and children.
If you lack discipline, this whole IBC thing doesn't make sense and seems complex for no reason.
As you know and experienced with Dave Ramsey is to help people get out of debt, Term allows you to use the difference to help get out of debt. I enjoyed listening and learning about infinite banking.
Thank you for your balanced approach to responding to Dave Ramsey on this topic. You are gracious, respectful, thoughtful and informative.
This is great content. I would add, that very few people even make the connection between term and whole life. Meaning, the reason they choose one or the other is not based upon what they can do with the savings on term life. I think most people buy term life because, first of all, it's the most common. Secondly, it's what MOST financial advisors advocate for. People know they need life insurance. It feels very complicated, so they pick what's easiest, term, because it's so available, and often don't realize that they could outlive the term of the policy, then have to start a new one, at an advanced age, which will cost them more and have less value. Also, if the money is invested, once you've paid the taxes on your dividends, how much does it really amount to? I'd rather be able to borrow from myself, for free, than have to pay interest and taxes on pretty much EVERY other source of Income....I'll be binging on these vids....
Whole life is expensive. There are fees for withdrawals. How long will it taketo build up enough to "invest"?
I must say, this is most entertaining and informative explanation that I’ve seen of infinite banking over the past few days of me learning about this. I have just one question that most videos don’t seem to address… how long does it take for someone to be able to access the loan or cash value benefits of their whole life policy before they can truly begin to implement the infinite banking process?
From my very brief research it’s my understanding that it could take many years before being able to actually utilize your policy as a vehicle for infinite banking….? Can you only access the true benefits sooner if you heavily fund your policy with cash deposits? It would be awesome if you two could please address this gap of information? Thanks!
It depends on the insurance company and how the policy is setup. That's why most people complain about not being able to see the cash value benefits in the early years because the policy is setup in a certain way. I have a policy that I was able to access cash value within year 1.
It definitely depends on how the policy is structured. The one I'm working on will provide me access within 24hrs. Not all of it but most of it. Also, the less % access you have to your CV, the more the agent is getting in commissions. Just keep that in mind. 90%-95% access is a great policy.
@@corydigital606 which company?
if your life agent sets it up properly you can take it out as early as a couple days to a week later. Up to 85% right away and then more and more and more as each year goes by. The infinite banking is incredible awesome and the best financial tool I've found ever
@@corydigital606 what policy is that ?
Term Life when used as intended is the Best Coverage you can buy for it's intended Purpose. Each type of Whole Life Policy is the Best Coverage you can buy for it's policy's intended Purpose. Each Universal Life Insurance Policy is the Best Coverage you can buy for it's policy's intended Purpose. Each Index Universal Life Insurance Policy is the Best Coverage you can buy for it's policy's intended Purpose. Everyone one of these different types of Insurance Policies (Term/Whole/Universal/Index Universal) is an indication of the chassis that policy is built on not a definition of how the policy is designed to perform or it's intended Purposed Outcome.
A Toyota Corolla and a Shelby Ford Mustang are both built on a car chassis but they ain't built the same, won't perform the same, and are purchased for different reasons.
New to the channel.
I fully understand both you and Dave. Here's the thing.
When I was originally searching this banking concept, I was led by the nose through words like:
Dividends
Investment
Interest Rate
Etc.
No one ever explained it to me the way you two did. The concept is difficult to grasp when explained by someone trying to make the most commission possible per prospect.
To put it blunt....
It's a sleazy process.
😒😒😒😒😒😒
I'm just glad it was explained properly for a change and now, I am fully prepared to give this idea a second look. 👀
Tha k you for your dedication and teamwork!
I can't wait to show Letoya! 😁
It’s amazing to see Dave talk about a subject he knows nothing about. Fact is if you are not buying something from him he is going to bash it. Do your research and the fact is that IUL and Whole life can be great options to warehouse your money if the policy is designed correctly. Keep up the great work you two!💪🏾
I had to click on SUBSCRIBE. There is something here, and I am willing to see where the information leads me. My 1st takeaway is the idea of using my whole life policy as my own personal line of credit. Next stop is learning about Infinite Banking.
@Wealth Nation What does the request look like if you apply to use your policy as collateral for the insurance company to give you a loan "I request to use my policy as collatoral to get a loan?" thanks
If someone is borrowing from the Cash Value of a life insurance policy & paying a 6-8% interest rate what would the point be to do something like that when they can take out a mortgage on their own for the same rate? I'm having a disconnect & trying to see what I'm missing here
Thank you for addressing this! So true that buy term and invest the difference is more talk than action. Thanks so much for your education on Infinite Banking. So much more people need to know about this alternative!
We’re trying to get the word out
what's wrong with buy term and invest the rest. i've accumulated enough to be put in the dirt and take care of the family by doing this. whole life is a good option, but clearly the sales folks want to promote the whole life route. That's why there are all these bells and whistles that come along with it.
@@Kevinschart You mean, all these “options”.
What's crazy is the our grandmothers was trying to show us this long time ago. I remember it when the insurance man used to come to the house in the brown suit back in the day my grandmother never had a job but was a hustler selling dinners, candy, customized clothes and she would never miss a payment and if anybody needed something she had it.
Dave never gives people options. There's only one way. No mention of using business credit, a credit line, etc. So naturally Infinite banking won't be mentioned.
He explains why.
It's a fake dividend.
I agree his credit card stance is a little ridiculous, but he backs up his stance with data. You spend more if you use plastic, you physically feel it when you dish out your cash. We're moving to a cashless society, so it's outdated advice, and credit cards are much safer than using your debit card, but Dave never changes.
Dave wouldn't know leverage if he met it on the street.
So, Infinite Banking doesn't work outside of having a whole life insurance policy. Is this correct?
What interest rate does the insurance company charge to borrow their money?
That was the BEST explaination of cash value I've ever heard. Thank you.
I'll put it this way. If you want to be lower-middle class (and there's nothing wrong with that) for the rest of your life, saving currency that losses purchasing power faster than any savings bank account could ever make you back, and you like having your hard earned currency tied up for YEARS without being able to pull it (such as in a 401k, for example), by all means listen to Dave Ramsey and Susy Orman. If you want to build lasting generational wealth, you have to think outside the box, and listen to these 2 👆👆 who know what's up and how to take charge of your financial destiny, one of those ways being the infinite banking concept, used by high net worth individuals. Thank y'all for doing what you do and for the great videos! 👍
Thank you so much! What else are you doing to build wealth?
I have my share of disagreements with Ramsey, but let's be clear here. If you want to stay lower middle class or worse for the rest of your life, then listen to Wealth Nation. In a nutshell, these two are telling you to put a ton of money into a whole life policy so that you can borrow YOUR money that YOU invested and then, essentially, pay a recurring penalty for using YOUR own money until you put back what you borrowed plus the interest accrued. And keep in mind that that penalty is going to be a higher rate than the rate at which your cash value will grow. You think that's the way to build a high net worth and lasting generational wealth? Don't be fooled by the fact that rich people use the infinite banking concept. They do that because they were already rich to begin with, not because doing that makes them rich.
When you have the money to take out a whole life policy that's $6K or $7K a month and then fund it substantially even beyond that, then yes, that can have its perks. Even with the comparatively modest returns of a whole life policy, you will still have substantial cash value increases that are also stable. You will also, actually, have the funds to use infinite banking in a meaningful way. You, actually, would be able to borrow $500K from your policy to buy a house and pay the 5% or so interest rate to your insurance company (good luck with paying $25K to your insurance company every year until you put back the $500K you borrowed from your policy if you even had that much to borrow in the first place if you are middle class), and that could make more sense than selling off $500K from your other investments and paying taxes on that.
But, if you only have the money to take out a whole life policy that's $6K or $7K a year, then none of the things in the previous paragraph will apply to you. I am not opposed to whole life if it's pursued in a sensible manner. The proper way to view whole life is to view it as a back up plan. The majority of one's investments should be in index funds that broadly track the market (like an S&P 500 index fund, for example), but whole life can serve as a back up when the market is down. The majority of one's life insurance coverage should be through a term policy, but whole life coverage can serve as a back up in case one lives long enough to not only outlive his/her term policy but also exhaust most of his/her savings. But using whole life to "be your own bank" is ludicrous and a great way to screw yourself financially if you are not already rich.
When you borrow money from insurance company, do you have to pay interest one time or multiple times? Or onetime fee?
Instead of that could we take out the cash value that build up in years with no interest ?
I have many doubts, how can I contact you to clear those doubts .
I'm really trying to understand this, could you clarify a point? Can you borrow from an insurance policy's cash value? Meaning, can you pull from the cash value (correct me on the term) from the insurance policy without paying an interest rate, similar to a savings account?
I love that you two are so informed and financially intelligent, are you two millionaires? If not I'm sure you will be.
I want to challenge you statement that whole life is expensive. At first it is, but soon enough with IBC you break even. The CV then moves ahead of premiums so that you get back more that you contribute. So at that point there is no net cost. Yes when you contribute, cost a comes out but CV is still more than you contribute. And if you go reduced paid up, the CV continues to grow without premium. So it doesn't cost you anything. So then in retirement you don't need term insurance which would be extremely expensive. You have a paid up policy that continues to grow in CV and DB. You may not have paid into the policy for 20 years.
marriage counseling is very important, good to have someone to meet with prior to being married to find those common ground areas, especially when things get tough, and they will with any marriage
Good explanation guys! You always have to do your own research. Opinion is not a fact, opinion is a person's person view point. Dave Ramsey has a great program, but all his philosophy shouldn't be received as gold. For example he talks against credit cards. You have to be disciplined to use credit cards for your benefits.
Please please Dave is another generation! His ideas are not for this times. There is a season for anything; his, is not of this times!
Infinite banking has been around for way longer than Dave Ramsy.
There are many in the "one percent" his age who understands wealth generation much better than him. It's not a matter of age, it's a matter of ideas.
You got debt, listen to Dave! You wanna do infinite banking, listen to Carmen and Darius! Dave is smart and valued and his ego has surpassed his knowledge in the “whole life insurance” policy. It’s ok Dave, you’re good just stick to what you know. 💪🏽💯
Sorry but those guys don't know nothing
@@jeremycharles8744 must be a Dave Ramsey’s fan. PrimAmerica??
@@jeremycharles8744really? So what do they not know? Pray tell!
@@EshhhaBenjamiteCarmen and Darius are salespeople lol 😅😅😅
Exactly!!! That's the thing about "buy term invest the rest" most (i'm most) don't actually invest the rest.
Thanks for the informative video!
You two are the most beautiful and savvy couple I've even seen. Keep up the great work!
Great stuff.
A couple of terms that have to be addressed:
1. Cash value earns a compounding dividend, not interest.
It’s easy to confuse the two, but for clarity, it has to be stated.
2. Non-direct recognition/Direct recognition. These two are different & can affect the compounding dividend effect.
Not all companies that IBC practitioners use will have these qualifications. Necessary research on would be adopters is paramount.
Love, the breakdowns & content.
Liked & subscribed.
Cash value is not the same as death benefit. Most cash values don’t reach death benefit level until year 121, if that. In order to get there one has to load up on PUA.
Dave & other naysayers are spreading disinformation (unintentionally).
Hello, what is the best way to increase cash value especially for an older person considering this financial option. Open two policies? Or add to the deposits over and above the "Cash Value". In my case cash value is so small because of my age i guess. But the 2550 value will be immediately available. :)
@@1onaroll maximize the first policy by loading up the PUAs, if you can manage the overfunding, then take out a second policy.
I’d recommend the second policy be on a younger close relation, this way you can utilize the lower premium at a 90/10 split.
Note, with the recent 7702 changes, most of the top mutuals are guaranteeing 2 - 3.75% versus the previous 4%; therefore, it’ll take more CV IOT realize the same or better gains.
@@applechili2848 Thank you AC so much, as soon as I translate the "code" I will get full understanding :) :). I am actually changing careers (late in life) soon and want to secure a license to sell these thru the party that is introducing me to this wonderful product so I have to Decode and learn at the same time. But I so appreciate the details in your response. Thank you. Do you have a channel or platform so I can follow? It is all new to me (sadly decades later than I should have known of this vehicle) I will be learning and growing and helping my children. So your suggestion to do just that was a relief too. Please forward or message your undertakings or your channels if any. Many thanks and continued success to you. See my question to Wealth Nation, you touched on everything. Namaste
@@1onaroll Thank you so much. Also, belated congratulations on your newfound journey.
As of right now, I do not have the appetite for content creation; however, maybe/possibly in the future, I may choose to endeavor.
In a past life, I was a producer; however, I chose to relinquish my license IOT better focus on my wellbeing.
If & when you decide to venture down this path, know that IBC is a concept that is caught, not taught. There are too many naysayers & people set in their ways, or chasing pie in the sky, too focused on chasing the fast alluding buck, to concentrate on old dusty CWL.
It’s a niche market & you have a lot of player/practitioners operating in this sphere…mostly to make a buck. I’ve figured out a way to 5x without relying on the customer, without increasing my income & by working within the means of my IBC. It’s that powerful!
How did you learn about IBC?
After all of these years, what made you decide to acquire a policy?
What were your reasons for not obtaining a policy?
Define what does pay yourself mean?
I find the aha moment the most exhilarating & shin kicking moment of the entire experience.
The second mind blowing moment is when you find out what you believe to be it’s capability.
Right now, that seems to be where you are, on the cusp of shattering another plateau. Believe, me, there will be plenty more!
I’m excited for you & whoever you are able to bring into the fold, & I look forward to hearing/seeing your future progress!
You guys should call into Dave’s show and him about it directly.
I heard it has be a certain kind of policy. Can anyone tell me what type and where to find it
it is a scam unless you have the exact type of whole life policy written to benefit YOU. Unfortunatley, most licensed whole life insurance agents don't write polices with your best interests in mind, they write them for THEIR best interests.
What are the details to request IF i decide to get a while life policy? What are the details to avoid? Thank you
A lot of people want a good lifestyle , but the way they spend can't see them getting that lifestyle anytime soon , the rich invests more and spends less
wise words you have said, I totally agree with you
There are so many investment options out there , one has to be very careful in picking out a good one
Investing might be good but investing in the right thing is the actual key to success
Investing in the right things matters, I actually invested in the stock market and also the crypto market , trust me crypto trading is more profitable than stock investment
Buy silver, buy gold but don't forget to acquire as many crypto as you can. Mark these words , someday people will regret not having at least one satoshi in their wallet
I have been BINGE watching all your videos!!!
Whole life insurance benefits those who do not want to hassle with investment in securities while they are young. After paying off the expenses associated with death, the ROI can be better with mutual funds (high risk) than a low interest bearing death benefit. The bottom line question seems to be on whether it is better to have hard or virtual collateral available for borrowing. Of course, Dave Ramsey's approach is to avoid borrowing and stay out of debt.
Great video !!!!! Starting my second year and all doing good .. I have recycled the money a few times ,😎
Awesome job. I am on my first year and started in at 30k with IBC. When you say you recycled the money a few times what does that mean exactly? Did you borrow money or?
Ramsey: it’s a scam!!
Me: Hold my beer......
😂😂
😂😂
I just hollered 😂🤣😂🤣😂
There is no circumstance in which insurance other than term insurance to cover very specific needs when adversity ocvurs.
I came here to learn from a possible debate; I'll be leaving with a better understanding of
"diversifying my portfolio".
Good video.
Dave Ramsey is good for getting out of personal debt, but outside of that I don't really follow him. I LOVE how you guys used his video to break down each part that he down played and showed the public how he was wrong with using correct information. When you speak to really successful people most of them have whole life policies and use as infinite banking. I learn from the people who have the lifestyle that I desire and they use infinite banking. Thank you!!
“He was wrong using correct information”- BARRSSSS!! Love it. Did you have an breakthrough moment?
@@WealthNation super great!!
Both you guys and Ramsey are saying essentially the same thing. You're giving the positive spin while he's giving the negative spin. 5+5=10 but so does 12-2. Dave is a believer in buying cheap term insurance to provide for your loved ones should you pass early. He's also a believer in doing your own investing rather than tying yourself into an expensive monthly insurance payment. I happen to agree with Dave on the issue of insurance and whole life is just a bad idea for ME. However whole life insurance is a great option for a lot of people.
The truth is that insurance used to be the best way for average folks to gain interest on their money and beat CDs or savings accounts. With mutual funds, online banking, and ETFs it's not the only game in town. Depending on your goals it may be the absolute worse option or it may be the best. For the uninitiated it is one of the more simple ways develop some wealth.
Low to no risk, plenty of reward for people that understand how to use it. IMO
Ramsey is not saying the same thing at all...
Having an investing strategy is ENTIRELY different than strategic utilization of whole life insurance. To be clear, whole life insurance is not a market based financial product. The performance of these policies is based on interest rates - again, interest rates... not market returns - thus making whole life a non-correlating asset when compared to market based investments, and more appropriately comparable to other non-correlating assets which are also interest rate driven: bonds, CD's or fixed income securities for example. It is ignorant and/or intellectually bankrupt to conflate whole life insurance with investing, yet this misrepresentation is done time and time again. I do acknowledge instances where buying whole life was a bad idea, but the vast majority of such accounts that I read about can be attributed to insurance agents who either wittingly or unwittingly sold badly structured contracts that aren't aligned with people's goals.
The truth is that insurance can still be the best way for average folks to gain interest on their money and beat CDs or savings accounts. However, due to historically low interest rates it may simply take longer to do so (all things being equal) when compared to decades past. Mutual funds and ETFs are equities... again, not comparable to life insurance... so any comparison with life insurance is obviously an invalid one.
You're not taking risk into consideration at all. Putting everything into mutual funds and ETFs is next level YOLO thinking.
Not saying the same thing, at all.
Dave Ramsey has caused so much confusion in this topic for many individuals. Straying people away from protecting themselves while using cash value.
Great Video!! Thank you both. 🙏❤🤓