26
May
2014
Come to a “Night of Clarity” in Nashville on August 15
On August 15 my business partner Carlos Lara and I will have another “Night of Clarity” event in downtown Nashville. For those who are curious what this is, here is the memorial video from last year:
The lineup of speakers this year is the same, except the headliner is David Stockman rather than Ron Paul. Full details here.
Wow Bob! As part of my reading for the upcoming Mises University, I went through Rothbard’s book on “What Has Government Done to Our Money.” As a result, these past couple weeks I’ve struggled with the frustration of relying on a banking system I disagree with and just wishing I could realistically be in control of my own money.
You can imagine my surprise and excitement then when I pulled up your blog and see this posted. So, I’ve stated researching IBC and naturally, I’m approaching the idea skeptically and cautiously, but I’m definitely intrigued.
Realistically, is this something a newly married individual in their 20’s could pursue now?
Tim Miller wrote:
Realistically, is this something a newly married individual in their 20′s could pursue now?
Ironically, when a lot of people in their 50s hear about IBC, they say, “Well dang, I wish you’d told me about this 30 years ago. Does it make sense to start now when my premiums are so much higher?”
You would definitely want to be sure you have enough life insurance coverage in force for your wife / kids (if you have any), and you might need a term policy to do that for a while. But yes, I think it makes sense for you to open a small IBC-structured whole life policy. In case you haven’t seen it, check this out and then there is my book with Carlos Lara.
Bob, a lot of the skepticism about whole life policies comes from the fact that they require involved discussion with an insurance agent, and the insurance agent makes a large amount in commissions, compared to a term life policies which can be bought in the blink of an eye and don’t earn too much commissions. So a lot of people think it’s just a scam to make more money for insurance agents. Do you envision that if the infinite banking concept becomes more popular, then one day you could just buy the “right” kind of whole life policy online without much interaction with any agent, and/or do you envision the commissions bein competed down eventually to term-life-like levels eventually?
Keshav,
I am a financial advisor that uses whole life as a planning tool. I can assure that I am paid well by companies I write. But it’s not as painful a process as you make it to be. if the client is interested in higher cash performance, I will design the policy accordingly. Any insurance agent will tell you that this reduces their compensation. What the client gives up is death benefit in the short term. But you have to be careful because sometimes higher cash values up front can lead to slower growth in the long run or losing certain tax advantages.
As. It stands today no one buys permanent Insurance on the internet or over the phone. Nor would you want to. A plan should be tailored directly to an individual client and that requires consultation. Companies would love to bypass me and go straight to the client. It would save them money too. It just doesn’t happen today. Maybe one day this will change.
I hope this helps.
Andrew