Taxes

Whole Life Insurance: Borrow vs. Withdraw – Which Option is Right for You? As a real estate investor, I prefer borrowing against my cash values. Let’s break down the pros and cons of each option (not exhaustive): Borrowing: Pros: Flexibility Skip underwriting Policy growth continues Avoid taxes or penalties Cons: Lower death benefit Compounding loan…

Why do people have such emotional responses to whole life insurance and the Infinite Banking Concept (IBC)? Here’s the #1 reason: A lack of understanding Whole Life Insurance: Misunderstanding the asset IBC: Misunderstanding what it truly is Isn’t it fascinating how a lack of understanding can lead to overly emotional responses? What’s informing my thoughts?…

30 Here are 5 essential ideas about storing money versus investing and why the distinction matters: Storing is different than investing.•Storing means keeping money in an asset that guarantees it will be there when needed. •Investing adds an element of risk compensated by higher expected returns.  You need to do both, but the order in…

If you’ve been paying attention, you’ll know that bonds aren’t what they used to be. Values are declining, risk is up, investors are selling, bond funds are underperforming, and municipal bonds are no longer the safe haven they once were. “With the demise of the bond insurance industry in the financial crisis, credit quality in…

One of the biggest fears people have is running out of money in retirement. And for many Americans, this is a very real risk, not an irrational phobia. If you are a reasonably healthy 65-year-old non-smoker, actuarial tables estimate you’re likely to live to age 86, as a man, and 89, as a woman. And…

The interest rate on an investment or financial product is important, but it’s not the only thing that matters.  It’s one principle of financial strategy among many that should be considered before committing to a financial course of action. There is more to financial strategy than searching for the highest rate of return on a…

What does the principle of certainty mean to you when it comes to your financial strategy and the investments and products you choose to purchase? Are you thinking about whether or not your money will be available when you want to use it 5, 10, 20 years down the road? When you are analyzing whether…

Whole life insurance is a terrible investment… They said with authority. First, whole life insurance isn’t an investment, unless of course you consider it an investment in securing the foundation of the rest of your entire financial strategy. Second, compared to what? That’s a great question to ask whenever somebody makes an assertion about how…

Avoid losses and keep more of your money. What has a greater impact on your ability to build wealth: higher rates of return or reducing costs? While seeking out investments with the highest rates of return seems more exciting than figuring out how to avoid losing what you already have, it is the latter that…

Let’s take a look at two different strategies for financing the down payment of a typical buy and hold real estate investment. One strategy uses a policy loan from whole life insurance, the other uses cash from a bank account. Investment opportunity assumptions: ● Single family rental ● Purchase price: $100,000 ● 25% down payment:…

A common question we get, whether it be from a client starting his or her first policy or from someone interested in learning more about dividend paying, high cash-value whole life insurance, is, “What do I do with a policy once I have it?” So that you will get maximum benefit and enjoyment from your…