Infinite Banking? Do or Don’t

[Darrell Bazemore]

Hey there,

I’ve recently come across this concept and after doing light research I cant seem to find anything wrong with this personal finance system thus far. I got a quote to see what the cash value is year 1 and it looks good too (guaranteed $6500 & $13.3k end of year 1 and 2 respectively). Even though I understand that I would need to put $500 minimum per month to make it work, but if I break even on payments vs cash value in like early YR 3, would it not be worth it? Couple of details: guaranteed growth rate 4% insurance company has been paying out dividends at 6% and policy loan interest rate is at 5%. Payments around $600/mo which I can build around that. What do you think? Am I crazy or would this be a good idea?

[Kyle Mans]

Don't get caught up with rates of return when implementing IBC. The IBC is a thought process that uses properly structured whole life insurance as a place to warehouse wealth that gives you control, liquidity, and guarantees. It is NOT an investment. You can still invest in stocks, real estate, or whatever you want, but running it through your policy first adds velocity to your money and allows you to recapture lost opportunity cost. Do some more research and you will find your answers. I did 7 months of research before starting my first policy.