- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Whole Life, Infinite Banking (IBC), Cash Flow
Posted on 6/8/18 at 8:29 am to iknowmorethanyou
Posted on 6/8/18 at 8:29 am to iknowmorethanyou
quote:
AG49 has pretty much homogenized illustrations to remove "sales rep tinkering"
This is a great point. Don't want it to get lost
quote:
As an actuary,
Just to be clear, I am talking exclusively in my capacity as GenesChin, upper echelon SEC rant / TD poster and sheriff of the Ole Miss board.
quote:
For cost of life insurance? It would be pretty ignorant of a company to use two different mortality tables.
First, traditional level WL has fixed COI charges while UL are variable. While there is a contract max guaranteed COI charge for UL, the actual charged will likely fluctuate based on company experience
To your point on tables, it depends on the company, but larger, more sophisticated pricing operations will frequently use assumptions that reflect the underlying product demographic distribution. UL is different than WL so different types of people buy it for different reasons
quote:
Genes, just to clarify, what are you arguing for or against?
Not advocating anything. Just trying to make sure people aren't spreading incorrect information
The only thing I'd argue for is that before proceeding do a great job researching products, understanidng what you are buying and ensuring what you are buying is the right fit for your needs.
This post was edited on 6/8/18 at 9:57 am
1
Posted on 6/8/18 at 9:53 am to jrobic4
quote:
While I would agree that a well-run stock company is a better option than a poorly-run mutual one, I can't see any reason I wouldn't buy a policy from one of the best mutual companies if all underwritings factors or equal
This is significantly more complex, harder question to answer on a message board. I wouldn't contest it as a rule of thumb.
I'll just say that a sophisticated buyer who understands what they are looking at shouldn't rule out non participating (i.e stock) products.
quote:
. For this guys need
I don't have an opinion on what this guy should do, so I wasn't trying to argue with what you were saying specific to this guy
Just that an "only mutual non direct recog" has the potential to filter out a superior option
Posted on 6/8/18 at 10:19 am to GenesChin
Infinite banking
I have 18 years experience placing these kind of strategies into my clients overall wealth building strategies. You may give me your email address and I will personally reach out to you but I can’t and won’t give blind advice on a message board. The article is for your own use to give you information so you can ask whatever advisor you use better questions on all the pros and cons to options available to you.
Good luck
I have 18 years experience placing these kind of strategies into my clients overall wealth building strategies. You may give me your email address and I will personally reach out to you but I can’t and won’t give blind advice on a message board. The article is for your own use to give you information so you can ask whatever advisor you use better questions on all the pros and cons to options available to you.
Good luck
Posted on 6/8/18 at 10:56 am to jrobic4
quote:
Vul can bea good product, but you want to talk about the devil being in the details! In my opinion, not appropriate for OP needs. What if he needs to access cash during a downturn? That's when attractive buying are to be had, but if the value of the portfolio is down there is less cash available.
a lot of ppl don't consider this or have an agent to educate them. If your looking at accessing funds, look at moving funds into the fixed acct built in the policy. that way you are not taking a huge hit with accessing funds during market down turn. then move out when ready to be in market
This post was edited on 6/8/18 at 10:59 am
Posted on 6/8/18 at 2:24 pm to bstew3006
quote:
that way you are not taking a huge hit with accessing funds during market down turn
Your separate account assets have already taken a hit before you transfer to a fixed account is the problem
Posted on 6/9/18 at 10:57 pm to IglooTiger
I think it’s a great strategy if the policy is structured that way. Every other person who says differently, doesn’t know this strategy. This may be the best financial strategy out there. Now, you can earn a higher return doing something else, but the whole premise (as you mentioned) goes back to control of the money.
I think it’s a great strategy. I do think a mutual life insurance company is the best for it. I do this as well.
I think it’s a great strategy. I do think a mutual life insurance company is the best for it. I do this as well.
Posted on 6/9/18 at 10:58 pm to meansonny
Not true at all!
Posted on 6/10/18 at 4:06 pm to IglooTiger
quote:
Yes, I’m absolutely looking for leverage. This is not an investment vehicle for me. I don’t give a hoot about the difference of 5% muni or 7% mutual fund. I want the ability get credit without question and payback without question, all while leaving the underlying compounding premium untouched.
So why not invest it and secure a portfolio line of credit or a margin loan against it?
Posted on 6/11/18 at 1:15 pm to IglooTiger
I don't subscribe to IBC.
When you overfund the life policy you are prepaying for the paid-up addition of the future death benefit. The paid-up addition on the base amount is what is creating the higher dividend accumulation, not the paid-up addition cash purchase.
It has never computed to be to my advantage to pre-pay for the paid-up addition, but it is to my advantage to purchase the policy base benefit as large as possible and leave cash elsewhere for liquidity.
The eventual cash in the base policy increases substantially to be utilized for investment moves and the income tax free dividend will be useful at my retirement.
The income tax free death benefit will cover my eventual spending of assets as the "leverage". This is part of my plan.
Bring on the downvotes for knowing what I'm doing.
When you overfund the life policy you are prepaying for the paid-up addition of the future death benefit. The paid-up addition on the base amount is what is creating the higher dividend accumulation, not the paid-up addition cash purchase.
It has never computed to be to my advantage to pre-pay for the paid-up addition, but it is to my advantage to purchase the policy base benefit as large as possible and leave cash elsewhere for liquidity.
The eventual cash in the base policy increases substantially to be utilized for investment moves and the income tax free dividend will be useful at my retirement.
The income tax free death benefit will cover my eventual spending of assets as the "leverage". This is part of my plan.
Bring on the downvotes for knowing what I'm doing.
Posted on 6/11/18 at 7:55 pm to Volvagia
quote:Well, that is what I typically do - however, the scrutiny and time taken to get the cash can take forever... and payback is on their terms.
So why not invest it and secure a portfolio line of credit or a margin loan against it?
What I'm being told is that with this I can request a check and have it the next day no questions asked. And I can payback when I want without answering to a banker or risk renegotiation or even default as a result of non-payment.
Posted on 6/11/18 at 8:04 pm to BestBanker
quote:No, that's good perspective but it's going to take a while to research your feedback. I don't have any reason to doubt what you are saying, not sure why someone would downvote.
Bring on the downvotes for knowing what I'm doing.
I feel good about their proposal and now have discussed with some other folks using the same application (referred from the broker) as well as considered everyone's input here. I appreciate all the feedback.
Page 3 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News