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Infinite Banking

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josht
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Infinite Banking  Reply with quote  

What do you know about the infinite banking concept? And what is your opinion of it as you see it now? Benefits? Disadvantages?
Post Thu Dec 23, 2010 9:13 pm
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oldguy
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quote:
Infinite Banking can be one of the greatest investment tools to create wealth. By using dividend paying whole life insurance as a vehicle


Life insurance companies have entire departments dedicated to arranging new products and catchy new names for them - it is a way to 'freshen' the old products that have worn thin. This has been going on for 60 years that I have witnessed personally - there is 'Return of Premiums', 'Whole Life', 'Variable Life', and dozens of variations. And then there is the endless line of annuity products (Congress has been looking at making the sale of inappropriate annuities to seniors illegal. Sometimes this 'infinite' banking scheme is wrapped around your home mortgage, that scam was popular in Australia 10 to 15 yrs ago.

Are you trying to get into insurance sales by selling this product? Or are you considering using it yourself? Or both?
Post Thu Dec 23, 2010 11:03 pm
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coaster
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Geez - talk about deceptive marketing.

He's here to sell it, of course. I probably would have sent the thread to the slammer, but since the topic has a reply, and a reply worthy of a discussion-starter, anybody who wants to weigh in on the topic, have at it!!
Post Fri Dec 24, 2010 6:05 am
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josht
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I don't think I would have much luck selling insurance over a forum... And yes I do sell infinite banking AND use it. But you could see that from my profile. I am just interested in seeing more responses of people and if they use it, don't use it, and what the overall feeling is...
Post Fri Dec 24, 2010 11:13 pm
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coaster
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quote:
Originally posted by josht
I don't think I would have much luck selling insurance over a forum..

There's no luck involved. It would be illegal, unless you were licensed everywhere.
Post Sat Dec 25, 2010 7:37 am
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josht
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Ya... true... Can't do anything outside the US.
Post Sat Dec 25, 2010 8:09 am
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oldguy
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quote:
And yes I do sell infinite banking AND use it. But you could see that from my profile. I am just interested in seeing more responses of people and if they use it, don't use it, and what the overall feeling is


Most people will recognize the scam, I doubt that you will get many takers outside of your own group of relatives and friends (ex-friends?). Crying or Very sad

I'm an engineer, math is my thing - I see two types of salesmen peddling these things, one type doesn't understand it, they buy into the marketing line, memorize the answers, and truly think that they are selling a good product, it's hard to fault them as scammers since they too are being scammed. The second type knows about the scam but they push it anyway, they enjoy the chase and the conquests.

IMO you should find a better product to sell before you dash your reputation and mess up your future in the business.
Post Sat Dec 25, 2010 4:57 pm
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josht
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If you are an engineer then you clearly haven't done your homework. Those who understand logic see the benefits of Infinite Banking and why it is heads and shoulders above any other option.

Read How It Works by Gary Vande Linde, He was a 12 year engineer. You are going to find that what you have heard or what you think you know isn't correct.

You can look it up online. There is a PDF in the middle of the search page that has it. From bank tutor .com or something like that.
Post Sat Dec 25, 2010 5:05 pm
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coaster
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My main problem with it is the label itself; words applied to paint a picture in the minds of your prospects; words taken associated with certain pictures and misapplied and therefore misrepresenting the product. In other words, a big lie. In my original words: deceptive marketing.

I held a life and health license at one time, years ago. I may not be up on the latest, but I do know what goes on inside that biz. As oldguy said, there are some who believe the line and are sincere; there are others who know it's BS and push it like P.T. Barnum on the suckers. I have no time for them or their BS.

I have to wonder whether the life insurance biz is in trouble when they keep coming up with more and more deceptive marketing concepts for their products. There are so many variations and so many ways to package life insurance products. Apparently the straightforward ways aren't working too well any more.

Life insurance is a necessity. Different products appeal to the needs of different lives. Find the need and apply the right product. Unfortunately, in too many cases, it's find the sucker who will buy into the product with the highest commission, whether it's right for that life or not.
Post Sat Dec 25, 2010 5:36 pm
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oldguy
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quote:
Those who understand logic see the benefits of Infinite Banking and why it is heads and shoulders above any other option.


Just so you know - I read your 'new car' example of borrowing from yourself in Infinite Banking. Not exactly a fresh idea, I've done that for 35 yrs.

I never pay cash for new cars, I leave our money in an SP500 Index Fund earning 11%/yr average. If I took the $30k out to pay cash for a car, I would also need to pay $3000 in capital gains tax on my profits, ie I would need to take out $33,000. Instead I finance the car 100% (leaving my own $33,000 in the SP500). Plus I sell the old car privately for maybe $4000 and put that into the SP500. The $37,000 in the SP500 @ 11% doubles to $74,000 in 6 yrs - and it grows tax deferred. And it is all done WITHOUT Infinite Banking.
Post Sat Dec 25, 2010 8:28 pm
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coaster
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... or maybe it's always been "infinite banking" but you never realized it ... Laughing

Josh, if oldguy had trademarked his technique, you'd have to pay royalties.
Post Sat Dec 25, 2010 8:35 pm
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nvrgivupevr
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Great forum ! I recently read a book ( well some of it ,jumped around a lot)called "Missed Fortune 101",and it had the same concept.Using insurance for tax reasons and to finance cars, houses, etc. Also talked about accumulating wealth this way, well, to start off , I'm a novice at finance,but trying to educate myself so I can make desicions about my money that are best for ME, not somone else. I always try to listen to people who know more than myself one, and two , people who have NOTHING to gain by giving me advice. Old Guy and Coaster as I see it have nothing to gain, and I love the car example Old guy gives for buying a car. ( wish I had the 33,000 to put in an index fund though) but my point I think is , it is very easy to read books like the one I have, and read posts like this one and believe them because they make them so inticing and believable. I do know one thing, there are no shortcuts to wealth. I'll keep watching and learning, thanks agin to old guy and coaster.

Merry Christmas and a safe and happy new year to all
Post Sun Dec 26, 2010 1:34 pm
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oldguy
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quote:
I do know one thing, there are no shortcuts to wealth.


An excellent truth to understand - it sounds simplistic, but people continually fall for the 'get rick quick' schemes - options, puts, calls, shorts, penny stocks, corn futures - those sell lots of 'how to' books and software packages. (BTW, I did everything on the above list during my formative yrs so I'm experienced how NOT to become wealthy as well as how to become wealthy). Very Happy
Post Sun Dec 26, 2010 4:47 pm
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coaster
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quote:
Originally posted by nvrgivupevr
....educate myself so I can make desicions about my money that are best for ME, not somone else. ....

This is a wise person. Smile
Post Sun Dec 26, 2010 5:40 pm
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josht
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@ Old Guy ...

Please then educate us. What index are you getting 11 percent a year average on?

And how are you getting this money to grow tax deferred? Roth IRA?

Also, just so you know. If you finance your cars 100 percent, which I assume you mean through the bank or another financial institution, and you are getting 11 percent on let's say $33,000, but you are paying 5 percent at the bank for a $33,000 car, then you are really only getting 6 percent on your money, minus taxes, you are getting 4 percent.
Post Mon Dec 27, 2010 7:07 am
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