Isis PalicioCash flow really is king. It’s business 101. You can have a profitable enterprise, but if you have poor cash flow you can get yourself into financial trouble pretty quickly and even go broke. Liquidity is highly important,
especially in a recessionary environment, and must be watched constantly by the money manager at the steering wheel of a business.
Ramsey’s First Problem: 12% Returns on
Mutual Funds?!
Regarding the first problem, Ramsey’s figure of 12%
returns on a mutual fund is an unfair benchmark to hold
against a whole life policy. Ramsey doesn’t specify
exactly what kind of mutual fund he is considering,
but for returns that high they must be heavily equitybased
sis and Pedro Palicio are Infinite Banking Concepts® Authorized Practitioners in all 50 states. We have over 28 years of experience in designing high cash value Infinite Banking policies from top mutual companies. Contact us at 1-844-443-8422 or at ContactUs@InfiniteBankingSimplified.com – https://infinitebankingsimplified.com
We must never forget that beyond all of
the outstanding attributes of a properly designed dividend-paying Whole Life
insurance contract and how it works, policy loans are a completely separate
undertaking and are a central feature of the Infinite Banking Concept.
We are specifically discussing a tax strategy that calls for taking the cash flows that are already earmarked for paying your taxes and re-routing them through a correctly designed IBC policy that has the capacity to adjust to your particular situation and provide the freedom to not be dependent on outside bankers. As before, I want to emphasize that this idea does NOT reduce your tax liability—I am simply presenting options for people to redirect cash flows that would occur anyway.
I can incentivize you do just that by showing you a way to fund a large
Infinite Banking Concept (IBC)-type life insurance policy, while using cashflows that are dedicated to paying your taxes.
Since we had such a great response to our Thanksgiving blog where we talked about its beginnings and the reason to give thanks, we thought we would bring you interesting Christmas Facts. Let’s get started:
A common method of showing the public the power of Nelson Nash’s
Infinite Banking Concept” (IBC) is to stress its feature of “constant
compounding.” In contrast to many other asset classes, dividend-paying
Whole Life insurance always increases in value. Indeed, some proponents of
IBC enthusiastically declare: “There’s nothing else like it!”
Nowadays the average American has been taught to believe that a very responsible financial strategy is to plunk as much of his paycheck every month as possible into a “diversified” and “conservative” mix of stocks and, if he wants to really play it safe, to mix in some government bonds. Naturally the acme of savvy saving is supposed to be a tax-qualified vehicle such as a Roth IRA for the self-employed, a 401(k) for salaried employees, or a 403(b) for educators.
In the 20th century, households used actual savings accounts at the bank—which were distinct from checking accounts. Households also invested directly in bonds and life insurance.
PART III Lesson 3 To Start Building Your Own Banking System Content: Page 42-43, Becoming Your Own Banker Fifth Edition
Now, let’s look at Method E. We will call this twin “Insurance Sister.” She uses dividend-paying whole life insurance as a depositary of the necessary capital to create her banking system to finance her automobiles. She puts $5,000 per year into very high-premium life insurance with a mutual company. Recall the diagram back on page 41. (There are some exceptions to this requirement – there are some stock companies that have dividend-paying policies that perform very well).
