Are you financially self-reliant? If not, decide to develop your own financial stability through taking control of your earning power, developing multiple streams of income, saving all you can, and concentrating on reliable investments with known or guaranteed returns. That way, even in times of stormy economic weather, you will find yourself on solid ground.read more
You should start by withdrawing funds from your investment accounts. In any year in which your investment account loses market value, the following year you don’t withdraw funds from that account but instead you withdraw funds from your IBC policy.read more
There is a lot of confusion in internet blogs about borrowing or taking a loan from your IBC/Banking policy. Let us make it absolutely clear that when you take a loan from your IBC policy what you are receiving is money from the general account of the insurance company that issued your policy, collateralized by the cash value of your policy.read more
Those of you familiar with Nelson Nash’s “Becoming Your Own Banker” know that to obtain efficiency in the generation of maximum cash values in your IBC policy, you should design it as close as possible to the MEC line.
On the other hand, if you follow Nelson’s teachings, you also know that when you take a policy loan against the cash value of your IBC policy, you should repay your loan at an interest rate comparable to the one that an alternative source, let’s say a credit card, would charge you. The dollar difference between this rate and what the insurance company is charging you, should be deposited in your policy as an additional contribution to your PUA rider. This means that you should have enough capacity in your PUA rider to accept this additional contribution. But wait a minute, if you have built this additional capacity in your policy, it means that it is not as close as possible to the MEC line for maximum efficiency. How do you solve this dilemma?read more
When we meet with clients and potential clients via phone, Zoom meetings, or in person, we always ask how they plan to use their IBC policies and most times they ask for recommendations based on their specific situation.
We always recommend that the cash value be divided into two funds: the emergency fund and the opportunity fund.read more