The Infinite Banking Concept EXPLAINED! And How To Get Started | Chris Naugle
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- Опубликовано: 11 окт 2024
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DISCLAIMER. The information presented in this video is for educational purposes only and should not be taken as investment advice. Investing involves risk and any decisions made based on the information presented in this video are solely your own responsibility. We encourage you to do your own research and consult with a financial professional before making any investment decisions. We do not endorse any particular investment or investment strategy, nor do we guarantee any specific outcome or profit. Past performance is not indicative of future results and investing involves the risk of loss. Thank you for watching and we hope you find this video informative and educational.
Hands down your best video for those just starting out. I've watched a few and I appreciated the simplicity and clarity of this 🙏🏽
I love the IBC Concept, the only issue i can’t seem to get around is Daily/Weekly/Monthly living expenses to create extra money to fund the policy. Great breakdown.
If you have $10-$100k laying around to invest in the whole life policy why on earth would you have high interest credit card debt??
It’s not for everyone!
It's not an investment it's a vehicle
Exactly. I don't understand. Does this work only when a person has more bads debts than the have saved?
Would you have cash flow after your intrest is dropped to 4-5%?
There many reason actually.
Can you share some info graphics we can download to show potential clients? Love your channel and have shared this with many already! 😀
Great video Chris! One question: can you roll over money from
An IRA to the whole life policy and avoid paying taxes?
No
I understand the IBC. Its genius and the concept is simple at the same time. My only question is this: Is there ever a point when the policy owner can extract money free and clear?
Do you continue paying the premium in addition to any loan repayment?
Yes, I pay in this order: 1) Base 2) PUA 3) Intrest
@@Burds_Builds Thank you!
Literally subscribed within the first 2 minutes of this video. Loved the way you broke this down!
Invest your money with low rate of return just to borrow it back?? Scam dude. Do your homework before giving your money to commission paid insurance salesman. Good luck 🍻
@@shawnriese4374 Understanding the concept even if you don't decide to use it is important too. The benefit of this is not only do you get a rate of return when borrowed it's tax free and received within a couple of days and still continues to grow. Can't do that in the stock market I'm afraid...
So can I only borrow against what money I start with or is the money borrowed from the money given by the insurance company? If I add a zero to my age , I would be at $450 a month. That $450 is the initial deposit to the policy when I first open it also or do you need a good chunk to open the policy first?
To my knowledge it would be $450 to start the policy. You would then be able to borrow say 80% or $360 to start using towards paying down other higher interest loans
Sounds like the dump in is the "best" way to start... but also, if you can afford it, that initial premium payment will grow out the account you can start to borrow from
No $450 is the monthly premium
The cash value normally lags about one year behind the money you contributed but will catch up around 8-10 years into the policy if designed correctly
OMG! This is the BEST info about money EVER!! Mind blowing! Why is this not taught in school or when were young?? If you get this comment, hypothetical question - what would it take as far as monthly payments to start IBC at 40 years old and how long would it take to reach a $1mill. policy to use?
The premium deposits really depend on your specific situation and goals and the associated timing. My guy craig@themoneymultiplier.com can help you get a more specific answer.
IBC is a scam. That's why they don't teach it. You're about to be taken on a ride if you do this.
Question, if i get one of those whole life policies, say for 100 k and my premium payment is 100 a month, i could withdraw 50 to 60 % on that.
No you can only with draw 60-90% of your Cash Value, I sell life insurance*
Awesome videos, but you guys need to cut the music down it's more distracting than beneficial. Keep it up
You explained this so simply . This makes a lot of sense👌🏾
We don’t have any debt, but after our monthly basics (food, gas, utilities), we don’t have much left over for other monthly payments. Are we supposed to take a loan to pay for the monthly basics and then pay the amounts budgeted for those items back to the policy instead?
When you take a loan, how do you actually get the money? Do they send you a check, or load a debit card, or something else?
Thank you for all the info. I am totally new to this concept and haven’t fully wrapped my head around it yet.
If this is so great, why only recommend 10% of income, what are the cons?
Awesome video. 2 questions for you -1.Do you work with folks in Canada ? 2. If I keep taking policy loans, at what stage am I going to use the actual cash that has been compounding over time?
You don’t, it’s to be paid on death. However you can borrow against it at will and you can’t be sued for the worth that’s in the policy.
I don’t have much debt besides a mortgage. The debt I have I don’t pay interest on- it’s either no interest CC or I pay the monthly balance every month. My only worry is, I’m not sure I can pay my $1400 month mortgage (escrow is half of this for taxes and homeowners- homeowners is a PITA in Florida) in addition to the loan repayment from the policy. I have 20k I could “dump” into the policy- I’m 38 years old. That would be all my liquid cash for emergencies too btw. So the $1400 and the policy loan repayment might be too much for me. I max out my Roth IRA and HSA every year and probably wouldn’t be able to that any longer if I did this. Anyone have some advice? Something I’m missing? Thanks!
Sounds like you answered your own question.
I love this but how do u get started?
The money multiplier method. Type in search thumbnail has his face and his wife and him on a snowboard
Melinda I can help! I do personal and business planning, we could set up a zoom call and talk. If you’re interested in Whole life remember you have to apply and get an application submitted. Underwriters have to give you a rating and that play into how much your premium will be
Why would i not just invest in the stockindex and get 10 percent return on my money instead and i could borrow money against that also ? Thank You
Borrowing against the margin is not the smartest
Approximately a few seconds after the 19 min mark:
Chris are you saying that if my IBC account has 100k and I borrow 40k and make a 1k payment that reduces my loan to 39k, I now have 61k for use right after that? If this is correct, then paying a loan back would put a smile on my face and a song in my heart.
Correct - As you pay back the loan (on which you set the terms for), part of that payment goes toward paying down the outstanding balance (which then free's up the current cash value that is, or was, in use), and the remaining payment goes toward your policy's PUA (Paid-Up Addition) Rider - This part will incrementally increase the death benefit of the policy, allowing for more available cash value (aka more accelerated death benefit access) and compounding growth.
Note - these policy's are built specifically for you, so your initial policy structure will determine the amount of base premium and PUA that you'll be working with. This structure is dictated by your current income, your ability to consistently continue to earn that income, your health screening, and your future goals. I say all of this to say that when you make straight-up PUA payments or make them as part of a loan repayment, you must be mindful of the policy MEC (Modified Endowment Contract) limit so that you don't destroy all of the beneficial reasons this was all setup in the first place. Once a MEC, always a MEC - it's no bueno. So, work with your insurance company to be mindful of the limit - they'll tell you what it is, to the penny.
Does IBC still work if the insurance company charges a higher rate to borrow than the interest you earn on it? In that case, I feel this becomes a liability to borrow.
I work with a agency affiliated with Guardian our loan repayment is fixed at 5%
Great video Chris. Sharing it with some friends and family. Keep killing it.
Is it available in Australia?
Can one use this concept with their small business?
yes brother!
@@khongcolong okay thanks brother 🤲🏽
Can you do a video on rolling out of a 401k into a Whole Life before 59 years old? I know there are a lot of factors, but just something that gives us an idea of the options. Let's say I'm 50, make about 150K/yr, have a 401k with 250K, house paid, no kids. Also, a video on taking equity out of house to fund would be cool. A lot of us have houses that have equity that is at risk. How could we facilitate a move that would protect value?
Usually you cannot take money directly from a 401k and put it into whole life. That's taking pre-tax money and suddenly putting it into post-tax money. You can roll 401ks into annuities however, but you can't do IBC with annuities. You can fund a policy dump in from home equity, but you'll have to disclose that the premium is being financed in the application.
It actually depends on the 401k. A Roth 401k is post tax.
This is a terrible idea. Don't do it!
You can totally roll 401k into a SPIA (annuity) and that annuity funds a whole life. I can help do that through any major carrier
How to find a policy?
I can help.
We design it for you depending on how much you can save a year Whole life is good but you shouldn’t put all your money into it still need non qualified accounts
how long does it take to grab money out of the policy.
Do you get a check book
Usually 5 days in the beginning but if you Insurance company is automated, it may take a day to two.
Hello I want to do this but I have nothing to put down just 450 a month to start how can I go about this I have one cc I am paying down and my house that’s it
I can help you but we should look at your whole financial picture don’t just jump into whole life, we can set up a zoom call if you would like!
I wonder why they rebranded whole life insurance into infinite banking?
Scam lol
Scam
@@astroman30 how so ?
@@efforthwata5614 Whole Life insurance uses a system (cash value) where you build up a savings, pay the insurance company 8% interest to BORROW against your own savings of which the insurance company KEEPS your savings. Scam.
How soon do I have to starting the money back
What is the maximum that can be dumped on an initial policy?
Basically as much as you want, so long as the continuing premiums match the IRS guidelines.
It is based on your total death benefit, but for a 2 million dollar policy you would be looking at 120k to 150k as initial maximum dump-in.
Remember it's all tax free.
The music is too loud ah
Ok, so I start with an injection of $100k and immediately borrow $90k to wipe out $90k worth of credit card debt. That would wipe out $3,300 per month of payments. Why do I have to keep paying the $3,300 per month back to this policy? I thought the $90k “loan” came from the death benefit??
You end up paying yourself the interest and the account keeps growing so you could take more Money while its working
@@isaacperez3997except you’re also buying an expensive whole life policy in the process lmao
@MrGiggity890 yea but its cheaper then a 3k a month Credit card payment..
If you have $100K and $90K in debt, just pay off the debt.
@@crossfire8021 nah, depends on what the debt is
My question is once the policy is started and you want to pay next your " own bank" aren't you restricted by how much you can increase your add in on top of your normal monthly premium amount. Ex 500 per month premium. I want to pay back the 10k loan I took last month. I can't just put a lump of 10k back in with my normal premium payment and can't just double my premium to repay my bank?
Great question, so the premium and loan are two different things. But you are asking two different questions, so you can only increase your premium payments yearly. So if you pay 500 a month you can’t increase that monthly payment until next year. As far as putting more money into your policy you can, 1st your able to call your insurance company and ask them for let’s say October how much of a payment dump “this has nothing to do with the loan of 10k” can I do for Oct. they will email you back with amount so you don’t go over your MEC limit (Modify Endowment Contract). Only the insurance will know the max MEC limit is. So paying back the 10k loan doesn’t have anything to do with the policy premium. You will state that this money is for repaying back the loan of 10k
Kind of. If you're moving large chunks of money in and out of the policy, it'll be important to make sure that you and the insurance company are on the same page about which amounts are base premium, loan repayments, and PUA (Paid-Up Addition), so that you make sure to avoid MEC status.
If you're in a position where you can put more PUA (above and beyond your base premium) into the policy - on an annual basis - then you're talking about convertible term, which is setup in combination with your WL from the beginning (because you're anticipating on expansion over the 5 - 20 years ahead). You'll be underwritten on both types from the start, and the new conversion(s) will have the same characteristics as the vault / bank that was opened before it. *This* is how your banking system really grows over the long haul.
What if your only depth is your mortgage? How would this work?
The infinite banking concept can work for so much more than debt, it can be used for opportunities, and investments and so on, stick around the campfire to learn more ways to leverage!
On the surface, without a lot of research, IBC appears to be a clever way that insurance companies & their salespeople devised to sell more Whole Life policies. After all, A.L. Williams (now Primerica) transformed the financial services landscape in the eighties with his "Buy Term & Invest the Difference" slogan. By now, that idea has likely assisted in significantly reducing the highly profitable income to insurance companies & their salespeople from Whole Life insurance sales, which William's said were sold by playing on the ignorance of unwitting clients.
This could be the same situation here...
Unless you can leverage the Wole Life policy in the same way that you're leveraging your credit score by borrowing (ex. buy a Whole Life policy with the first month's payment & borrowing $50,000), it sounds like you still don't have the hard cash you needed when you originally borrowed the money. If you actually have $50,000, it seems far fetched to buy a Whole Life policy with it & borrow it from yourself.
At 73 can I start this?
Would you sell this policy to your mother?
Yes I would.
Thanks, these videos are super helpful as reading, Nelson Nash’s book feels something like between a revival, a Milton Friedman talk (big Milton Friedman fan no knock there, but just not quite sure how his comments about the government being bad help his book), And sound economic advice.
This is great if you have good or better than most health. Buy term, invest the difference 🎯💯
now how does buy term and invest the difference help at all with what this video is about. Plus term is underwriten the same way so health matters for both.
Sounds to simple, what insurance companies write these policies? Can you barrow as soon as you dump your money in?
Guardian is a good company
FIRST!
I think if you just took your extra money and put it in the S&P 500 and wait 20-30 years starting at like age 25 you’ll have way more money
You’re right, but that’s thinking of the money as an investment, this is a savings vehicle to finance areas of your life. You should still put the majority of your retirement money into the stock market and other higher return categories, but this is a better alternative to just saving up cash in a savings account then pouring it all out when you need to make a large purchase, then having to replenish it and not scoring a rate of return.
What if you place your money in a policy to be your own bank, then borrow it to invest in the S&P? Arbitrage?
Actually ... there is a book called Money. Wealth. Life Insurance. It actually compares the S&P 500 to infinite banking over a 20 year period, and S&P loses by a mile.
@eddieaguilar9455 why would you pay fees to some unknown salesman, earn less than 3% and thrn borrow some of the money you put in? IBC is designed for idiots by insurance salesman.
@@networkempowerment6367 nobody can cure idiot, read that book.
It’s not the same as paying debt out of your bank account since the insurance company charges interest it’s the same as borrowing money from bank as a loan not using your money in your bank account…. You could still keep your money and just take a loan out at lower interest rate to pay high interest debt… borrowing money from a bank or insurance company is the exact same thing
Yeah ... but you're missing some details.
1. Borrow from the life insurance company and there's no credit check .. it's automatic. Also, approval is guaranteed. They loan you the money without knowing whether or not "you're good for it", because if you don't pay it back, they just subtract it from the death benefit they would pay. If you have $100K in the bank, the bank still does a credit check, and it is possible they still don't give you the loan, since you could spend all your money in your checking account and still now pay them back.
I can’t understand how this thing work
No true,You said we can get 60 to 90 % immediately after funding your policy, but does not true, for example Prudential (Certera) only allows 10% per year, what company let you do what you say?
He lied, snake oil sales man
Wait at first you said 10x your age. Then you said so that’s 15x your age.
Did I miss something?
I caught that too. Not sure how in the world that happened. lol
He said if you’re between 30 and 60, then 10x. If you’re younger than 30 or older than 60, then 15x
At least on the basic level this makes sense. Specially if you're right and it keeps building interest
LMMFAO. Run.
It's scary because i dont have the funds to start...
I have started with one of your videos about the naysayers of infinite banking. Neither you nor a couple others have made sense of how whole life is an infinite banking product. I have concluded that it is not. I won't call it a scam, but it is definitely a misleading sales pitch.
WL good, infinite banking good, but they have nothing to do with each other. The fact that your policy gains interest as you borrow money from the company doesn’t make it fit the definition of being your own bank. These scenarios are no different than opening a money market savings with a bank, then asking that same bank for a loan. The fact that you don't use the money in the savings account and continue to earn interest doesn't make it infinite banking.
It would seem that a loan from a retirement account would be the only product that could classify as a personal bank. When paying the money back, it actually goes back into your account with the interest you were charged.
But a money market doesn't pay dividends ... only interest gain.
Infinite banking for the insurance companies 😂 how do ppl fall for these scams. Imagine having to borrow against your own money and pay interest to an insurance company. Buy term, invest in index funds and become filthy rich
This person is giving multiple wrong information in this video. He is selling a poor product to make huge commissions from. The dishonest way of selling poorly written wl through social media should be banned, and this guy be prosecuted.
This is a scam - Do not do this, ever. Ever.
This is a scam product sold by a scam artist.
so state farm is a scam?
@@ChicoDaUno whole life life insurance is a scam. If they sell whole life, it’s a scam.
@@iitalianiiyou should definitely expand upon that if you want to help anyone
Definitely not a scam. It's working great for me.
@@shawngates953 I promise you - you’re being scammed. There’s zero chance you can even explain to me how it’s working great for you.
Jokes
Trash advice
SCAM. Pay someone to put your money in to a glass jar and when you want the money you also pay them to take your money out. Throw in a few other charges for additional bs fees. Put more money into that glass jar than you said you would. The reason why whole life infinite banking isn’t taxed is the same reason that jar isn’t taxed. You’re not making money.
Good explanation. The insurance salesman take a big chunk from the class jar.
This feels like a scam
It is.
None of the add in photos and pictures match anything no quick explanation .
You are not good at explaining this concept simply.
Who has savings with this inflation? We were just finally starting to save money when Covid 19 came around. Now we are proud to be part of the living paycheck to paycheck people. Not really! If inflation ever comes down or god forbid my wife ever actually gets a raise again, then maybe this will be useful. This is obviously of no use if you can’t afford to save any money.
Pls don’t ever get involved in this product it’s a terrible deal. Just buy term life insurance and put the remainder in the S&P.
term life insurance pays out approximately 1% of the time...
@@theWholeTipThat's a good thing they didn't die with dependants
Mortgage is a scam
U have no idea what your talking about This works!!!!
Thanks