Infinite Banking, still a good idea? Evaluate my policy.

[Antuan C.]

Hey folks,

I started a Whole Life Insurance policy almost three years ago for the purpose of investing in real estate. Lately, I have been thinking on cancelling my policy and put that money towards maximizing my 401k and opening a Roth IRA. I have read most posts here about infinite banking, but I'm still not convinced it's a good investment vehicle. My agent is a big believer of the infinite banking concept, she introduced me to it and I read the book but when I compare it against ROI of the stock market, it's almost a no brainier that the stock market is a better investment. Also in my first real estate rental I was not able to use a cash value as a down payment, that's a big downside for me.

I put 30k a year towards the premium. Here's my tabular values (only showing the first 30 years). Should I keep it, if so, what's the ROI you are seeing, perhaps I'm running my numbers the wrong way, but I get 2% ROI, that's very little. If I should cancel it, what other investment vehicle do you recommend me to place these funds.

I would love to hear your input.

Thank you so much folks.

[Bill B.]

It was a semi-bad idea when interest rates were 6%. A bad idea when they got to 4% and a horrible idea today. Have any whole life insurance agent show you the vacation they took with the commission they made selling it to you. A classic example of “it’s never purchased by anyone, it’s sold to them…”