2020 July Lara-Murphy Report
Why do the defenders of capitalism feel like they’re under coordinated attack? Because they are.
Blog 70 – Key Questions About The Infinite Banking Concept
1)What is the Infinite Banking Concept?
The Infinite Banking Concept (IBC) is an exceptional cash management tool for your personal economy or for your business that gives you financial independence by recapturing interest payments that otherwise would flow to outsiders.
2020 August BankNotes
IBC and Whole Life: Process versus Platform: By Robert P. Murphy
At this year’s Think Tank, I noticed that the various speakers seemed to fall
into two camps. In the first camp, the practitioners stressed their understanding
of the “banking” aspect of Nelson’s ideas. People in this camp explained how
they helped their clients redirect cash flows to allow their clients to “become
their own bankers.” Not surprisingly, people in this camp relied very heavily
on Nelson’s best-selling book, Becoming Your Own Banker, since their
approach with clients followed very closely the approach Nelson uses in his
book to address the reader. Typically the people in this camp would reject
the conventional framework and terminology of the professional financial
industry, saying that only by changing one’s mindset and thought process
could one escape from the bondage of the bankers.
On the other hand, there was a different camp of speakers at the Think Tank. In
their presentations, they explained how they showed their clients that dividendpaying
Whole Life insurance was a perfectly respectable asset class, which
had its own pros and cons. They then explained quite convincingly that in our
current economic and political environment, it made a lot of sense for many
clients to shift their portfolio more heavily in favor of this conservative asset,
because it was superior to the more popular selections (stocks, bonds, real
estate, etc.) on many dimensions. The practitioners in this camp did not shy
from taking on the Dave Ramseys and Suze Ormans of the world on their own
terms. You want to talk about rates of return? Sure thing, let’s just make sure
we’re analyzing the assets correctly, including tax considerations and liquidity.
The more we study it with an open mind, the more amazing it is that somehow
Whole Life insurance has gotten a reputation as an awful financialproduct.
Blog 69 – Is Social Security Income Taxable?
Blog 69 – Is Social Security Income Taxable?
According to the Social Security website, some of you have to pay federal income taxes on your Social Security benefits.
2020 June Lara-Murphy Report
One of the ironies in our current situation is that Carlos and I have been warning our subscribers for years that the various rounds of quantitative easing (QE) had blown up a giant asset bubble that would eventually burst, and that the fallout would be even worse than what happened in the fall of 2008. Well, that did happen, but there was the whole global pandemic thrown into the mix. Consequently, it’s hard to know how Austrian business cycle theory interacts with the coronavirus itself and the associated lockdowns.
Blog 68 – The Term Rider Of An IBC Policy
One of the key pieces of information that a prospective client shares with us is the monthly or annual contribution that he/she would like to make to his/her Infinite Banking Concept (IBC) policy.
Once we know the original contribution to the policy, including the modal premium, (annually or monthly), and the age, gender, and the underwriting rating of the insured, we determine the minimum amount of death benefit necessary to make sure that the policy does not violate the Modified Endowment Contract (MEC) regulations.
Blog 67 – The Capitalization Phase Of An IBC Policy
Prospective clients need to realize that the cumulative break-even may take a few years due to the initial cost of setting up the death benefit of the policy and the compensation to the financial professional who designs, sells and will service the policy for years to come. That is what Nelson Nash calls the capitalization phase of the policy.
2020 May BankNotes
The latest report on new unemployment claims was abysmal, coming in at 4.4
million last week, some 100,000 more than surveyed economists had expected.
The continuous claims came in at just under 16 million, an all-time record.
Mainstream labor economists estimate that, all things considered, the actual
unemployment rate now (which is only officially reported with a lag) is above
20 percent—a rate not seen since the darkest days of the Great Depression.
Indeed, all of the job gains since the Great Recession have been wiped out in
just a matter of weeks.
Blog 65 – Everything You Ever Wanted To Know About Paid-Up Additions – Part 4
The most common dividend options for dividend-paying whole life policies are paid-up additions, paid in cash, reduce premium, and accumulate at interest.
Of the four options, paid-up additions will produce the most amount of cash value and will also increase the amount of death benefit. The reason is that you purchase paid-up additions which earn dividends which then purchase more paid-up additions resulting in a compounding effect or exponential growth in the amount of cash value as well as in the amount of death benefit.
2020 April BankNotes
“This is R. Nelson Nash” in His Own Words
The following was put together in January 2018 by R. Nelson Nash for the
2018 IBC Think Tank Conference. I thought it appropriate to share on the
anniversary of Nelson’s passing (27 March, 2019). — David Stearns
A person’s thoughts over a period of time ultimately results in a set of core
beliefs—a mindset—some call it a worldview—that controls human action
and gives life meaning and purpose.