Great example James always exciting to see a real life example. The 48 month loan example at 5% Paid back in 43 month due to 10% I understand Nelson’s rules Don’t be afraid to Capitalize Think Long Term Don’t steal the peas Don’t do business with banks You have said in a previous video, “ how much do you value your capital? Because to you it’s worth at least 10%” So I’m concluding your paying additional interest because 1) by paying additional interest your loan balance is paid off sooner which month over month would have given you more access to capital when opportunity presents itself to you vs if you only paid the policy loan interest rate, and it also allows you to practice the functions of the banker and the bank owner in the financial play?
Less we See James and more of the board would be GREAT. Also, a yardstick and not a lazier light as we don't see his light on the screen when viewing the youtube video. Hope this helps!
For something intended for CZcams in the future, absolutely. This footage was not originally meant to be released to the public, but ended up being released as a bonus video on our channel.
James , why did you waited to put the 30k into the policy to buy the truck why was those 30k in your policy a long time before gaining interest and dividend ? Thanks
Early on in a persons life, it has to be hard to use IBC to purchase say your first family home. Its often just too much money not to have to leverage against a lender.
Or (like myself) to utilize your existing policies to pay down, but can't quite, buy your family home from your lender. And even if you could, all of your "lend to yourself" ability from the policy is locked up in the large loan.
Anonymous Trucker yes, you can take out your cash value whenever you’d like. In the first one - five years the cash value builds up slowly, but after year five things will compound quickly and the fees go down significantly.
This is interesting but I am already maxing out my policy premiums. If I were to put anymore in it would convert to a MEC. In my case, do I still make a loan to myself?
Use the practicioner finder on the ibc website to find an agent/producer who is certified as knowing how to create one of these policies infinitebanking.org/finder/
In your audience, a business owner wanted to know how to use a policy loan to pay his taxes. You said he can buy a policy and take a policy loan to pay the tax. He asked where the money would come from to pay the loan back and you said that he would get it from the same place he would have got the money to pay the tax. What I'm wondering is, if he's using that money to pay back the loan, where does he get the money to pay the next year's premium? The money that would have gone to pay the premium is paying back the loan. This is the money that he used to save to pay the tax. So where does the extra money come from to pay the next year's premium? I am thinking of using this strategy for my husband's business because he has the same issue with taxes, but because of the need to pay back the loan and also pay the premium, I was thinking that maybe he should use half of the money he saved up to pay the tax and make the premium that much. Then he can take out a policy loan and use the other half of the money he saved up to pay back the loan. Please let me know if I am missing something.
Why does your husband "have" to pay back the loan? In the book Becoming Your Own Banker by Nelson Nash, Nelson talks about creating hole or deficit. Those holes would/should/could be filled later by a "windfall" of money. An example of a windfall would be an inheritance, sale of property, sale of business, an increase in income, etc. So for your husband, he can set up a policy (make sure it is done by someone who understands what the "right" type is) and then start using the policy as you are proposing. The only difference from your strategy, would change to take a loan, and realize you will pay it off in 5, 10, 15 years with a "windfall ". Do you have any windfalls on your horizon? Another option would be to create loans, pay the interest, then let the death benefit pay the loan balance upon his passing. What I am sharing is pretty basic for an agent like James and myself because we have already mapped it out. I strongly recommend that you contact James. There are many details that would be reviewed in the first few meetings that are specific to your situation. I like your thinking! Why not use that tax dollars more efficiently....?
@matt S I have the same question as you. The suggestion of perpetual interest does not appear to be ideal. After doing this one year you have $50 a month interest only payments. Do it for 5 years and you have $250 interest only payments. And $60k debt. The question is if this debt is helping the policy grow sufficiently for the perma interest you are paying... or am I wrong? If this is a good idea, why not take the cash money and deposit it into the insurance each year? And compound it that way?
@@thebestclassicalmusic The policy loan debt can only exist because the outside idle cash was first put to work in the policy. That principal injection earns interest and dividends permanently, whether the loan exists or not. By repaying the loans, you're always climbing ahead, because the loan balance is declining, while your full cash injection into the policy is earning its full amount (regardless of the loan balance.) Paying interest only for a few years to get some breathing room financially is one useful technique.
The Cash Value is the measurement of your equity *today* in the contract based on the *future uncertain* death benefit payout. If you died today, today's cash value is included in the death benefit payout. It doesn't disappear.
Your cash value is a representation of the equity built up in your policy, no different than the equity built up in your home, you sell your home what happens to the equity? No difference, you sell your home you get the value of the home... What happens to the equity?
James, this is ingenious. My wife and I are enthralled by this.
Great example James always exciting to see a real life example.
The 48 month loan example at 5%
Paid back in 43 month due to 10%
I understand Nelson’s rules
Don’t be afraid to Capitalize
Think Long Term
Don’t steal the peas
Don’t do business with banks
You have said in a previous video, “ how much do you value your capital? Because to you it’s worth at least 10%”
So I’m concluding your paying additional interest because
1) by paying additional interest your loan balance is paid off sooner which month over month would have given you more access to capital when opportunity presents itself to you vs if you only paid the policy loan interest rate, and it also allows you to practice the functions of the banker and the bank owner in the financial play?
Thank you James.
James - I sincerely appreciate this video. It's been very helpful and instructional.
Who has control? Love it!!!
Thank you for sharing this with the world, it has changed my life for the better
Thank you for educating the public sir. 🙏
A microphone for the people asking questions would be Great as well. THANKS
Thanks for the info
Less we See James and more of the board would be GREAT. Also, a yardstick and not a lazier light as we don't see his light on the screen when viewing the youtube video. Hope this helps!
For something intended for CZcams in the future, absolutely. This footage was not originally meant to be released to the public, but ended up being released as a bonus video on our channel.
James , why did you waited to put the 30k into the policy to buy the truck why was those 30k in your policy a long time before gaining interest and dividend ?
Thanks
35:11 got us scratching our heads
Early on in a persons life, it has to be hard to use IBC to purchase say your first family home. Its often just too much money not to have to leverage against a lender.
Or (like myself) to utilize your existing policies to pay down, but can't quite, buy your family home from your lender. And even if you could, all of your "lend to yourself" ability from the policy is locked up in the large loan.
whats the max amount could i put into a policy every year? and if i reach that limit would i have to open up a new account?
He paid $10000 to insurance he gt loan he paid irs. He repaid his insurance company he now has $20000 cash value policy.
What the top 3 insurance companies to go with that have policies that allow you to practice “IBC”??
@@cess308 so you can take out money as you please??
Anonymous Trucker yes, you can take out your cash value whenever you’d like. In the first one - five years the cash value builds up slowly, but after year five things will compound quickly and the fees go down significantly.
Be sure to understand which companies allow flexible paid-up additions. It's important in how one uses IBC.
This is interesting but I am already maxing out my policy premiums. If I were to put anymore in it would convert to a MEC. In my case, do I still make a loan to myself?
Hello WKE,
AV Ninja Justin here. James addresses your question in Q&A #39!
Question #5.
czcams.com/video/i-xkWGpkS40/video.html
Who are the 5 Wl companies you use James?
Your question is generally answered in Q&A #10 question #1. czcams.com/video/9U0ly4FbuQE/video.html
How would I know if my agent creates the right structure policy for my Wife?? What are the things I need to Look for?
Use the practicioner finder on the ibc website to find an agent/producer who is certified as knowing how to create one of these policies
infinitebanking.org/finder/
In your audience, a business owner wanted to know how to use a policy loan to pay his taxes. You said he can buy a policy and take a policy loan to pay the tax. He asked where the money would come from to pay the loan back and you said that he would get it from the same place he would have got the money to pay the tax. What I'm wondering is, if he's using that money to pay back the loan, where does he get the money to pay the next year's premium? The money that would have gone to pay the premium is paying back the loan. This is the money that he used to save to pay the tax. So where does the extra money come from to pay the next year's premium? I am thinking of using this strategy for my husband's business because he has the same issue with taxes, but because of the need to pay back the loan and also pay the premium, I was thinking that maybe he should use half of the money he saved up to pay the tax and make the premium that much. Then he can take out a policy loan and use the other half of the money he saved up to pay back the loan. Please let me know if I am missing something.
Why does your husband "have" to pay back the loan? In the book Becoming Your Own Banker by Nelson Nash, Nelson talks about creating hole or deficit. Those holes would/should/could be filled later by a "windfall" of money. An example of a windfall would be an inheritance, sale of property, sale of business, an increase in income, etc.
So for your husband, he can set up a policy (make sure it is done by someone who understands what the "right" type is) and then start using the policy as you are proposing. The only difference from your strategy, would change to take a loan, and realize you will pay it off in 5, 10, 15 years with a "windfall ".
Do you have any windfalls on your horizon?
Another option would be to create loans, pay the interest, then let the death benefit pay the loan balance upon his passing.
What I am sharing is pretty basic for an agent like James and myself because we have already mapped it out. I strongly recommend that you contact James. There are many details that would be reviewed in the first few meetings that are specific to your situation.
I like your thinking! Why not use that tax dollars more efficiently....?
Thanks Matt. Great advice.
@A B Wow. I didn't know you could do that. Thanks.
@matt S I have the same question as you. The suggestion of perpetual interest does not appear to be ideal. After doing this one year you have $50 a month interest only payments. Do it for 5 years and you have $250 interest only payments. And $60k debt. The question is if this debt is helping the policy grow sufficiently for the perma interest you are paying... or am I wrong?
If this is a good idea, why not take the cash money and deposit it into the insurance each year? And compound it that way?
@@thebestclassicalmusic The policy loan debt can only exist because the outside idle cash was first put to work in the policy. That principal injection earns interest and dividends permanently, whether the loan exists or not.
By repaying the loans, you're always climbing ahead, because the loan balance is declining, while your full cash injection into the policy is earning its full amount (regardless of the loan balance.)
Paying interest only for a few years to get some breathing room financially is one useful technique.
if I die suddenly, what happens to the cash value that I created?
Cash value disappears on death, your heirs receive the available death benefit.
The Cash Value is the measurement of your equity *today* in the contract based on the *future uncertain* death benefit payout.
If you died today, today's cash value is included in the death benefit payout. It doesn't disappear.
Your cash value is a representation of the equity built up in your policy, no different than the equity built up in your home, you sell your home what happens to the equity? No difference, you sell your home you get the value of the home... What happens to the equity?
@@heyerstandards If you mean that ...cash value is added on top of the Death Benefit , you are wrong. Only the Death Benefit is paid out nothing else.