"Can This Work with a Small Amount of Money?" - Case Study | IBC Global
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- Äas pĆidĂĄn 25. 08. 2024
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All advice and/or opinions expressed in our videos are the result of our experience in the insurance and financial industries. Any action taken based on the information expressed in our videos is the sole responsibility of the viewer. All content produced by Steve Parisi and IBC Global Inc is made for informational purposes only.
#Finance #WholeLife #Insurance
Thank you for making this. I'm trying to get my 20 yr old into IB & he only has about $200 extra per month. It's good to see IB content that doesn't require thousands of dollars to make it happen, which is what i see on so many other channels.
This is the only ibc guy ive seen do this with a small amout of money, this is gold
Iâm an agent myself and learn so much from you. Because most agent just want to drive up their commissions I want to work for my clients. Thank you for your great information
How do you become an agent
Great content! Me and my husband have been wondering about this very question and since you gave an example of how low you can start with, I know I can put more than that into my policy. You've got a new subscriber!
Sorry for the late reply on my end... But thank you for subscribing!!! :)
did you open your policy ?
have you been putting in the fullest amount ?
Seeing client as people as we want to be treated (golden rule) says volumes about you and your company. No wonder why you are successful
Thank you Thomas. I appreciate that comment
I definitely want to get a policy setup in the next few weeks. Let me check your links to see how I may acquire your services. This is another amazing delivery of invaluable information.
Very well arranged video, good details and information. Many people believe that insurance that builds an investment component doesn't do well, your attention to details explains more how a policy can be made to be helpful, and can accumulate return. Some agents show a typical policy and don't make it more to their client. I was pleased to watch when you showed paying into a policy for different years, as with many investments, consistency makes it work or not. If anyone thinks putting every dollar into an insurance policy is the best idea, my opinion is that it's not. Not because a policy won't necessarily do well, but there are other investment vehicles, a good portfolio will be a combination of different investment options and vehicles. A good policy is one that the premiums are manageable, and can be added to, a large paying policy benefits the agent. Making a money market fund as the designated deduction account for the premiums, will help a policy grow. If money for premiums is taken from equity accounts when they are lower, you have just bought high and sold low. Some consistency like that will make the company rich, as they are buying low from you. Try allocating enough money for your premium to money market, and continue investing in the equity options. Treat the insurance as one component, and the investment as one. The investments are where you add money, and gain value. The insurance is a benefit that is for people you care about. Look at more than one option, tax shelters, open accounts, UL policy, individual stocks. If you are able to put in the most to all of them, you are doing good. Let compounding do it's wonders. Invest early, invest often, stay invested.
Great job! I learn so much from your content. Thank you
Perfect illustration! Just exactly what i needed!
That is what I'm doing for great grand kids. Small but sometimes that added cash value may be a life saver.
Thank you for this video. This was very helpful! I love your videos and the very clear explanations you give. Please keep these videos coming. I've learned a great deal from you!!!
I love this. You answered my question in such detail. Gratitude
My first policy was $100 base, $251 PUA
These really helped me, I canât wait to work with you guys. Thanks
Great information as always!
Thanks for the information! Two questions: 1. Is this true when you die your beneficiary receives only the policy amount not the cash value? From my understanding the cash value is taken by the insurance company. 2. If the previous question is true what would happen if I took out a big chunk of the cash value then died sometime after before repaying the amount. Would my beneficiary only receive the remaining cash value or the policy amount? Thanks for the help!
Good questions. See below. When you die, the death benefit is paid out to your beneficiary. The death benefit growth will account for the cash value. I've included a video that may be helpful below.
- czcams.com/video/NaUVV5g9mmw/video.html
Regarding policy loans. See below.
- czcams.com/video/JG1Q2HKTMa0/video.html
Priceless content!â„ïžđ gtfo the matrix đȘđđ°âïž
I feel you one not being able to make the payments sometimes. There were times I thought about canceling mine but didn't want to lose all the money that I've already put in there. It's been a few years now and that cash value comes in handy.
Fully agree. There were times I struggled to make payments in the early years. Definiltey worth keeping it.
I thought that Mass had a 6 percent dividend and 4 percent interest. Why is it a negative internal rate of return? Where are the dividend and interest pay outs? Thanks so much. Love your content
Thanks for the comment Taylor. The Internal Rate of Return will typically be negative in the first 3-5 years of a policy due to the insurance expenses (Mainly base premium).
Regarding the 6% dividend and 4% loan rate, Mass made a number of changes to their whole life products with the 7702 change. I've included a few videos that may be helpful below.
- czcams.com/video/6RjpDYY_XHU/video.html
czcams.com/video/8TL0NEqg9Vw/video.html
Hi Thanks for the video, very clear and informative. I am wondering how the annual IRR is calculated? for example, the annual IRR of year2, is it =IRR(-3000,-3000, cash vaule of year2)? but the result does not match what shows in the video. Thanks a lot.
show me how, I am sold!
Can you point me in the direction of Uk insurance companies who provide this type of cover with Uk tax implications in mind? Thanks.
Unfortunately, we do not have experience in this area. We would not know where to start.
Excellent video and the break down is phenomenal, but I still don't understand the MEC because part of my goal in obtaining life insurance is to be able to borrow from the account for real estate and business ventures so I'd like to understand how to avoid penalties when taking cash out. If I' am understanding some-what correctly is that, you can avoid penalties when taking cash out with an MEC account but if I'm putting 10% into the Prem and 90% into the PUA, how much % would I need to put into the MEC to avoid penalties and how much could I take out to avoid penalties? Hopefully that make sense. I'm totally green to this, but I understand a whole lot better having watched your videos!! Thanks so much
You are not actually taking money from your policy but instead your policies death benefit is used as collateral for the loan from the insurance company.
I've been enjoying your videos. The thing is that I am a permanent resident in Canada. Can I still purchase a policy from those American companies?
Thank you!. In order to obtain a policy with a U.S. company, one must have the following:
- U.S. citizenship
- Social Security # or Taxpayer Identification #
- U.S. Address
- U.S. Bank account
We have a group in Canada that understands policy design and how to set them up for maximum cash value.
- ibcglobalinc.com/canada/
I'm interested in opening one for my 11 year old son. Who do I talk to?
Do you agree that a long term goal by IBCers is for premiums to match income? I get that capita growth in WL policy beats 0.01% in savings.
Good question. Yes and no. It is not for everyone when the numbers are reviewed. The strategy can work if our income is significantly higher than our spending. The cost to borrow can exceed the net growth rate of a policy, which does not make sense when looking at the numbers. Some have successfully implemented this strategy and put themselves in a healthy financial position.
If someone wants to see this strategy, we will show them the policy performance and net numbers before they dedicate money to the plan.
i wouldnt do this unless i have investments as a young person. this is not a cool way to get a car..it sucks actually..4% YOY is pretty shitty lol my recommendation would be to buy a share of the s&p or build out any sort of investment portfolio. learn real estate, stocks, crypto whatever ..spend that 200 bucks on education, research etc...before even considering this...stay on moms life insurance and invest the rest..once youve got a grasp on investing..now save the income/capital gains in a policy, use policy as collateral , buy real estate and finance your own deals charge YOURSELF interest.. Rinse, Repeat, DONE.
Thanks for the comment and for providing your recommendation! Appreciate it :)
You clearly donât understand how it works. Search Joseph Quijano Become The Banker webinar to get the big picture.
@@livinginla200 lmao...i have over 75k in policies...I own 2 fourplexes that im currently house hacking ,so not only do i "get this" ...im living it!!....The creator of become your own bank is Nelson Nash (everyone knows this) Ive read the book front to back and front to back again so i have no idea who Joseph Quijano is, so you clearly have no idea if you think its smart for a young man to use this vehicle as a way to save for a car..he literally can put that same cash in the S&P and do extremely well for himself..i said i wouldnt do this if i dont have or started an investment portfolio ...this isnt an investment..this is a savings account...so if your saving money instead of investing money and having money work for you,then your probably going to be saving for a very long time.. educate yourself on this...this isnt childs play.
Hey Reb MCMG, can you walk one through this? I agree. Angie!
What happens if you have a MEC of $15,-20,000 a year but you are not able to fund that amount? Do you suggest donât push that limit and keep it at $10K instead. ? Also letâs say I can do a lump sum of $20K and a $4200 a year premium with a MEC of $10K does that mean that I can still add the $5,800 ad the end of the year or can I add it in the monthly payment to make it the $10K each year and so on. Hope this makes sense Iâm just trying to make sure I completely understand because I want to pass this information to others.
See below.
What happens if you have a MEC of $15,-20,000 a year but you are not able to fund that amount?
*** Good question. The unused MEC space would continue to compound over time and you can make MEC catch up payments in the future if you'd like.
*** If you have not funded up to the MEC limit in any year, you can reduce the MEC limit. Example.
- If you start with a 20k MEC limit.
- The maximum you pay during any of the prior years is 10k.
- You may reduce the death benefit/MEC limit to 10k.
-- NOTE: If the maximum you paid in the first year was 20k (up to the MEC limit) and then 10k a year thereafter, you cannot reduce death benefit without triggering a MEC until policy year 8.
Do you suggest donât push that limit and keep it at $10K instead. ?
*** This is a matter of preference for most. Two options below.
- Option A: Start with a 10k MEC limit and fund up to the MEC limit each year. Advantage: Policy is max funded and generates a strong IRR. Disadvantage: If you would like to add more than 10k/yr, an additional policy would be needed. This results in new start-up costs.
- Option B: Start with a 10k MEC limit and fund @ 10k/yr. Advantage: Additional MEC space exists which allows for more money to be added without taking on a new policy. Disadvantage: If we never take advantage of the additional MEC space, the additional death benefit purchased to acquire the MEC space ends up hurting cash value performance.
Also letâs say I can do a lump sum of $20K and a $4200 a year premium with a MEC of $10K does that mean that I can still add the $5,800 ad the end of the year or can I add it in the monthly payment to make it the $10K each year and so on. Hope this makes sense Iâm just trying to make sure I completely understand because I want to pass this information to others.
*** A MEC limit of $24,200, or $25,800 would be needed in this case. The lump sum will count toward the MEC limit.
Thanks!
I would like to start a policy but I think Iâm too old,however I would like to start one for my 24 year old son.Can I call you?
Thank you for the comment. Yes, you can call us at our office. I've included contact information below.
- Phone: 800-805-3707 or 610-681-2655
- Email: info@ibcglobalinc.com
- Website: ibcglobalinc.com/
great video. i have a 3600 with all the pua, but my cash value is 1200 every year. is there a way to fix this?
Thanks for the comment! It sounds like the base premium is about $2,400. You can email us at info@ibcglobalinc.com, and we can review the policy if you'd like.
Great White Board to show the examples on !
Thanksđșđž
I prefer to hear about what the average person can do instead of someone with $2 million in a savings account. lol. In my dreams.
This is me. I started a Universal Index with $100K coverage at age 45 paying premiums at $180 monthly with no PUA Rider and a little over 2 years later Iâm barely at approximately $1,400 cash value.
Thanks for the comment Antonio. The design of the policy can likely be improved to allocate more of your money toward cash value.
@@IBCGlobalIncto reach my agent for a definitive answer if I am able to put more funds towards CV, I would definitely like to know if I am allowed to with American National?
@@antonioreyes2692 Good question. I'm not that familiar with American National products. Your agent should be able to provide info :)
@@IBCGlobalInc does your company have any affiliation or recommendations with MassMatual Puerto Rico?
@@antonioreyes2692 We are licensed in Puerto Rico and MassMutual is a company that offers insurance there. We recommend MassMutual as one of the 4 Major Mutual companies.
What state do you do business in?
We are licensed in 49 states. Can work across the country :)
@@IBCGlobalInc Thanks for the info!
@@IBCGlobalInc Hope that one state is not Ca.?
at what age does one of these policies no longer make sense because the person is probably not going to live that much longer ? 70?..75?âŠ
Good question! We've had success with high cash value policies with individuals starting under the age of 80.
Is it too late to start this my wife and i are 35-36?
Good question! No, not at all. Below are two videos that demonstrate policies on 35-year-old individuals.
- czcams.com/video/StbtizkzbKc/video.html
- czcams.com/video/sOxlULhco1A/video.html
I got mine at 36 back in 2015, I really didn't know what I was getting into then, lol. My husband died in a car accident 5 years earlier without any life insurance and we had four kids, I knew I had to do something for my kids in case something happened to me. A friend I made after my husband's passing was selling life insurance on the side. I ended up getting a UIL policy.
Hi Steve,
I would like to see an illustration for a 43 yr old. $250k 10/90 split High Max Cash Value Whole Life insurance policy. Non-Smoker. Thanks.
Thanks for the comment! We can put that together. I've included a link to our website below. This will get the process started and someone from our team will reach out to you.
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