Blog 56 – Efficiency Versus Flexibility In The Design Of IBC Policies
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?
Blog 55 – Infinite Ways To Use Infinite Banking Policies
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.
Blog 54 – Designing Your Banking Policy
Everybody wants to know what makes the banking policy or Infinite Banking policy different from other types of life insurance policies and how do they go about designing the right policy for them. Now, here is the secret: the policy designer should take into consideration all the observations indicated below.
The designer first starts with a dividend-paying whole life insurance policy from a mutual insurance company. When designing a banking policy or Infinite Banking policy, you don’t specify the desired death benefit, but the annual or monthly contributions that the owner will be comfortable making to such policy.
Blog 53 – The Impact Of Financial Mistakes
Have you ever made a big financial mistake? You’re not alone. According to a Consumer Federation of America report, 67% of middle class American consumers (those with annual incomes of $30-100,000) owned up to a “really bad financial decision”, resulting in an average loss of $23,000.
Blog 52 – The Long Road To IBC: Sheer Persistence Guarantees Success
Presentation given at the 2019 Infinite Banking Concepts Think Tank Symposium Pedro explains how he fled Communist Cuba as a young man, earned several degrees including a Ph.D. and an MBA from Columbia University in New York City, worked for a Think Tank of the U.S. Department of Defense in Washington, D.C., and later, The … Read more
Blog 51 – Presentation To The 2019 Nelson Nash Institute Think Tank – February 7, 2019
On February 7, 2019, I was invited to speak at this years Nelson Nash Institute’s Annual Think Tank. It was my pleasure and my honor to be given this opportunity. Below is my presentation.
The Long Road To IBC: Sheer Persistence Guarantees Success
Blog 50 – Use The Same Money For Both College Education And Retirement
After many years of designing Infinite Banking policies, the number one concern of most of our clients is how they can assist their children with their college education without affecting the retirement plans for themselves. As you already know, the advantage of Infinite Banking policies is the fact that you can reuse the cash value … Read more
Blog #49 – Questions to Ask AFTER You Apply For Life Insurance
Now we continue the conversation to discuss the questions and decisions that come into play during the application process. These questions are relevant to whole life insurance and may not apply to other types of life insurance, especially types with little or no cash value, or life insurance that does not guarantee the death benefit permanently. How will you know? Ask the questions!
Blog #48 – Questions To Ask BEFORE You Apply For Life Insurance
Questions To Ask BEFORE You Apply For Life Insurance
Nobody wants “buyer’s remorse” when it comes to something as important as life insurance! And yet, we hear it all the time… policy owners who wish they knew what they know now before they bought their policy!
Today we’ll give you some questions to consider early in the process. (There are also questions to consider later, such as specific riders, amount of insurance, beneficiaries, but first things first.) There are important questions you may not know to ask, and additionally, there are the questions that everyone asks that may be less important than you think!
Blog #47 – The Myth of Direct vs Non-Direct Recognition
Although you might be disappointed, the truth is that one method is not necessarily superior to the other. Direct recognition versus non-direct recognition is more a game of smoke and mirrors used by the insurance companies themselves to keep your focus away from what is really important. In fact, there are good and bad insurance contracts in both direct and non-direct recognition insurance companies.