@30 so refreshing...the uninterrupted growth cannot be emphasized enough....thx for informative style of real life IBC practice applications 😎 keep it up!
Who cares about the uninterrupted growth of a fund that you don't own or control? You can only take out loans against it and then pay it back with interest. Can't emphasize enough how silly that concept is. What you should be looking at more closely at a very simple level is how much money leaves your pocket and how much money comes back.
hi Anthony. questions. how much does it c cost to open 5 policies for my spouse kids and I and maximum $$$ I can start therm with? also how can I buy real state if I'm only allow to get a loan up to the mount I have in the insurance account? and one last one, are the rules different here in California the rest of the union? thank you and sorry for soo many questions.
The way we design policies YOU decide the premiums. I am a huge fan of getting policies on your kids. Not only to teach about money but also to lock in their insurability. I have one child that has medical issues and cannot get another policy. You can buy RE through your policy. I do. You do need to have the money inside the policy first. We have ways to design the policy so you can buy a property in the first year. I can explain better over the phone. If you want to chat about it, you can schedule a call with this link. calendly.com/anthonyfaso/15-min-phone-call Wish you the best. IBC works in Cali too 😊
@@AnthonyJFasoCPA That's pretty powerful. Although it's certainly possible, it would be hard to find a better paying investment to take out a loan for, if the IBC is that good (and I think it might be). Tax-free, protected from creditors, passed tax-free to heirs.
QUESTION: It seems like in the saver and spender example, they make one payment. Either they are financing or saving to pay cash. However, in this example, you are showing two payments. One to pay back the loan and another to continue to fund the policy. If we were to use two payments in the saver and spender example--would the curve not look similar to this one ( 19:37 ) ? They make their payment to the car loan (the same as if it was in IBC or a different lender) and another payment to an investment account. Or they simply do not take the money out of their investment account which would never interrupt the compounding. It seems like a little bit of an apples and oranges comparison--am I wrong?
When you talk about the 5% simple interest on the policy loan, is that an annual rate? The 4% was annual and compounded over those 5 years. How does 5 years effect the 5%?
Marshall, thanks for the questions. Yes, the 5% loan and the 4% growth are both an annual. On any loan that you pay at least the interest, it will not compound. After 5 yrs you would have paid $6,614 in interest and earned interest of $10,833. In this case I used the purchase of a car because it is easy to relate. It is something that everyone buys and needs to be replaced. It gets exciting when you use your policy to buy an asset like a rental property. In this case you use the insurance company’s money for the purchase, or the down payment and the tenant pays the policy loan back. Once the loan is paid off, not only do you have a cash flowing asset, but you have all of the money back into your policy. You never broke the compound interest curve. If you are interested in real estate, check out my videos on Real Estate with Whole Life, the Great And 1 czcams.com/play/PL5m7zLOoa22z_lQcF6xW05b-A_p67PvE4.html You can also check out our podcast For Itunes bit.ly/IWCpodcast For Google bit.ly/IWCpodcastGoogle Let me know if you have any other questions.
Because it assumes that you are making payments of $943.56/month that consists of both interest and principal. As you make each payment, the principal amount decreases, which reduces the amount of interest that is paid in the following month. You can clearly see this in an amortization schedule, like when you take out a mortgage. My question is what happens if you choose not to make the payments? I would assume then that your calculation of $12,500 would be accurate.
Nice work!
@30 so refreshing...the uninterrupted growth cannot be emphasized enough....thx for informative style of real life IBC practice applications 😎 keep it up!
Glad you found value. You can find my new content at my Infinite Wealth channel czcams.com/channels/btEcy_8F_ad7LPSXXAuBEw.html
Who cares about the uninterrupted growth of a fund that you don't own or control? You can only take out loans against it and then pay it back with interest. Can't emphasize enough how silly that concept is. What you should be looking at more closely at a very simple level is how much money leaves your pocket and how much money comes back.
Is it safe to assume all billionaires do this and this is how they pay no taxes?
I cannot say that ALL billionaires do this but this one way they pay less in tax. I would say that most billionaires are buying term insurance
hi Anthony.
questions.
how much does it c cost to open 5 policies for my spouse kids and I and maximum $$$ I can start therm with?
also how can I buy real state if I'm only allow to get a loan up to the mount I have in the insurance account?
and one last one, are the rules different here in California the rest of the union?
thank you and sorry for soo many questions.
The way we design policies YOU decide the premiums. I am a huge fan of getting policies on your kids. Not only to teach about money but also to lock in their insurability. I have one child that has medical issues and cannot get another policy. You can buy RE through your policy. I do. You do need to have the money inside the policy first. We have ways to design the policy so you can buy a property in the first year. I can explain better over the phone. If you want to chat about it, you can schedule a call with this link. calendly.com/anthonyfaso/15-min-phone-call Wish you the best. IBC works in Cali too 😊
Bb
So the loan is against death benefit not your cash value?
Its both. The max loan you can have is up to your cash value.
So, would it make sense to take out a policy loan from your cash value each year to maximize your PUA?
It depends on the situation, but in most, that is what I would recommend. As long as we have a plan to eventually repay that loan.
@@AnthonyJFasoCPA That's pretty powerful. Although it's certainly possible, it would be hard to find a better paying investment to take out a loan for, if the IBC is that good (and I think it might be). Tax-free, protected from creditors, passed tax-free to heirs.
@@WMichaelDeJonge If you can find something better, I would love to know.
QUESTION: It seems like in the saver and spender example, they make one payment. Either they are financing or saving to pay cash. However, in this example, you are showing two payments. One to pay back the loan and another to continue to fund the policy. If we were to use two payments in the saver and spender example--would the curve not look similar to this one ( 19:37 ) ? They make their payment to the car loan (the same as if it was in IBC or a different lender) and another payment to an investment account. Or they simply do not take the money out of their investment account which would never interrupt the compounding. It seems like a little bit of an apples and oranges comparison--am I wrong?
When you talk about the 5% simple interest on the policy loan, is that an annual rate? The 4% was annual and compounded over those 5 years. How does 5 years effect the 5%?
Marshall, thanks for the questions. Yes, the 5% loan and the 4% growth are both an annual. On any loan that you pay at least the interest, it will not compound. After 5 yrs you would have paid $6,614 in interest and earned interest of $10,833.
In this case I used the purchase of a car because it is easy to relate. It is something that everyone buys and needs to be replaced. It gets exciting when you use your policy to buy an asset like a rental property. In this case you use the insurance company’s money for the purchase, or the down payment and the tenant pays the policy loan back. Once the loan is paid off, not only do you have a cash flowing asset, but you have all of the money back into your policy. You never broke the compound interest curve.
If you are interested in real estate, check out my videos on Real Estate with Whole Life, the Great And 1 czcams.com/play/PL5m7zLOoa22z_lQcF6xW05b-A_p67PvE4.html
You can also check out our podcast For Itunes
bit.ly/IWCpodcast
For Google
bit.ly/IWCpodcastGoogle
Let me know if you have any other questions.
How did you get $6,614 on simple interest? When I use Principal x Interest x Time (50,000 x 5% x 5 years) I get $12,500?
Because it assumes that you are making payments of $943.56/month that consists of both interest and principal. As you make each payment, the principal amount decreases, which reduces the amount of interest that is paid in the following month. You can clearly see this in an amortization schedule, like when you take out a mortgage. My question is what happens if you choose not to make the payments? I would assume then that your calculation of $12,500 would be accurate.