All Forum Posts by: Brandon Beaudoin

 Great question!  Good to see people exploring their options for leveraging their cash values.  Makes me truly happy to see people who understand some of the 'hidden' benefits of CVLI 👍💪👏

But, agree with @Thomas Rutkowski in that you'll be hard pressed to find CVLOC rates at present that beat policy loan rates.  If you find a great rate from a bank below, say 6%, let us know.

Best wishes!

@Hunter Purnell

If you're open to other options you could offload a handful of your properties, apply for a high cash value whole life policy, max fund it and then do a couple things:

1. Take a policy loan against the cash value (5-6% current loan rates) in advance of the auction so cash is on-hand, purchase real estate, execute business plan on home, repay policy loan, and repeat.  Your money is working for you in two places at once, you get insurance, and you can repeat the process with very competitive rates and flexibility (particularly for fix/flips).

2. Do same thing as number 1 above but get a Cash Value LOC (CVLOC) and do the same thing. Again, competitive rates (much more so than HM or HELOC) and still have your money working in two places at once.

We recommend #1 since we try to leave banks out of scenarios if they aren't absolutely needed but it is possible.

Just some thoughts if you decide to liquidate a couple properties and happen upon some cash.

Reach out if you have any questions.

Best wishes!

@Zachary Harr

Fellow Midwesterner (from Upper Peninsula of MI) and was also pretty low income.  Amazing how that can have an impact on our drive, passion for learning, and resolve to be financially secure, huh?

I read your post and everyone else's here and not one person knows how much protection you currently have in place.

As someone who was accustomed to thinking (mostly) "offense only" I can unequivocally say that the best offense means nothing without good defense.

Offensively, you seem to be well positioned offensively.

It's hard to say what to do next because we only know how your offense is set up.

What happens to you or your wife's plans if either of you lose your high paying W2?

What happens if your home or investments are underinsured and you get sued?

What happens if your primary residence burns down?

What happens if your HYSA bank holding $400k goes insolvent?

Cars are owned but how are they insured?

Are you insured?  Your wife?  Your kids?

Permanently or temporarily?

Statistics on people's insurance coverage amounts shows that they are VASTLY underinsured. Just facts, not FUD.

Things to think about.

I know personally, and not just because I sell life insurance (gasp!) but because I also practice IBC, that I would be max funding a whole life policy NOW so I would be storing my cash in a more beneficial location than a HYSA, can leverage the money no questions asked for any future investments you might decide on YET still earn interest and likely dividends on the cash value, flexibile repayment terms, and protections on the backend for you and your loved ones.

Not to mention tax deferred growth and a future tax free income stream of dividends up to your basis.

Could also serve as a 529 equivalent (didn't see it above) for your children if you didn't put policies on them.

Without knowing all the details it's hard to say.  Others bring up good points but my free cash goes towards my whole life policies FIRST because of all the present and future benefits it offers.

Happy to chat about it, get to know you and see if I can help you.  Shoot me a message.

Best wishes and be blessed.  Sounds like you're doing great, rooting for ya!

@Sam Ghi

The way to do infinite banking is with a mutual insurance company and securing max funded (ideally) whole life insurance policy(is). That is how the founder envisioned it and puts the lowest amount of risk on you and your capital.

If you understand the concept of using CDs and collateralizing them for low risk investments why would you not do the same thing (but far better) by leveraging whole life cash value that locks in a rate and earns dividends (highly likely) for life without all the risk of involving the banks....and getting all the other benefits whole life insurance provides, to boot?

The concept of infinite banking should, ideally, not be done with lending institutions. Doing so puts risks back onto you... unnecessarily.

Your head's kind of in the right place but your intentions could be much better served practicing IBC as it was intended to be practiced.

You're 10 months into this now and still haven't acted. What's stopping you?

I'm a licensed agent and practice IBC. If you'd like help let's jump on a call. Send me a message anytime.

Best wishes!

B

@Tony Ferreira

You have good options based on the limited amount I could gather based on your post.

Shot you a DM, please feel free to follow up if you'd like!

@Sage Weiss

Infinite Banking is a strategy and methodology that leverages the amazing benefits (see below list) of dividend paying whole life insurance. The late R. Nelson Nash developed the concept in the early 80s but the product the concept utilizes has been around for much, much longer.

Since you brought up term insurance (which is temporary w/ no cash value accumulation or dividends), oftentimes a policy will be supplemented by term insurance in the form of a rider that allows one to increase their death benefit such that they can store more cash in their policy without triggering IRS MEC limits and therefore be subject to tax hits.

The concept and its value proposition is incredibly misunderstood (and sadly often abused) but the reality is it works. Let no financial advisor or planner tell you otherwise. And it's worked for generations and the wealthy for a very long time because mutual insurance companies understand the human lifecycle quite well (law of large numbers), they're well regulated, make safe and sound investments and in several cases have paid out dividends consecutively for over 150 years (Mass Mutual, Lafayette Life, etc). That alone is incredible!

It works incredibly well for real estate because it offers flexibility, liquidity, and allows you to make your dollars (cash value) more efficient by allowing them to work in two places at once (in the policy itself in participating policies by earning contractually guaranteed interest and dividends as well as in the investment you leverage your cash value for). No other product can allow one to do this (HELOCs are similar in a sense but have drawbacks and limitations that whole life does not).

I can tell you misunderstand the underlying mechanics of IBC yourself in how you mention credit (you're not alone!) but once a policy is in place and there is sufficient cash value then credit is of no concern and it's yours to leverage how you see fit.

As for the $20k that can absolutely be sufficient to flip a property or help flip a property. I know of a guy who flips in the Midwest and he can do quite a bit with $20k in his flips (he also owns a couple STRs like myself).

Hope this helps and see below 👇 for the benefits I mentioned above. If you want to talk more I'm a licensed agent and have a fantastic team of NNI certified Authorized IBC Practitioners behind me to support. We can educate and get you straightened out.

Benefits of whole life insurance include:

* Income Protection (Disability/Illness)

* Flexible Access to Cash

* Tax Advantages

* Stable and Guaranteed Growth

* Asset Protection

* Legacy and Wealth Transfer

* Uninterrupted Compound Growth

* Ability to Earn in Two Places at Once

* Inflation Hedge

* Dividend Potential

* Non-Correlation to Market

* Life Death Benefit Coverage

* Tax-Free Retirement Income Potential

@Sage Weiss

Evening!

If you're maxed out on retirement accounts have you looked into cash value whole life insurance?

It's a great place to store your cash until you find the right opportunity that works for you plus all the other benefits it provides (not least of which is flexible terms and liquidity when you DO find somewhere to invest your money). And, of course, it doesn't stop compounding once you do deploy the capital for said deal/opportunity.

If you're not looking to buy real estate or do REITS (assuming LP syndications are a no-go?) then maybe you could do hard/private money lending? Or note investing? Those seem like avenues you could explore if you haven't already.

If you're interested in talking more about dividend paying whole life I'm happy to chat more with you on the topic.

Best wishes!

B

𝐃𝐨 𝐲𝐨𝐮 𝐥𝐨𝐯𝐞 𝐫𝐞𝐚𝐥 𝐞𝐬𝐭𝐚𝐭𝐞?⁣⁣
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I do and it's why I currently have a portfolio of over $5.25MM of it between a mix of single family Short Term Rentals and multifamily apartment syndications.⁣⁣
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It's what helped us amass a net worth that qualified us as accredited investors (https://www.sec.gov/education/capitalraising/building-blocks/accredited-investor).⁣⁣
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It provides us cash flow now that allows us to better enjoy the finite time we have here on earth.⁣⁣
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It is a tangible asset and tax-advantaged that I can pass on to my children one day to pick up where I leave off.⁣⁣
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It is my 𝐟𝐚𝐯𝐨𝐫𝐢𝐭𝐞 asset class, by far.⁣⁣
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If I could do it all over again I'd change only 𝘖𝘕𝘌 thing......𝐰𝐡𝐞𝐫𝐞 𝐈 𝐝𝐞𝐩𝐥𝐨𝐲𝐞𝐝 𝐦𝐲 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 𝐟𝐫𝐨𝐦!⁣⁣
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The money used to acquire about half of these properties over the years came from a mixture of savings and retirement accounts (which were 𝘱𝘦𝘯𝘢𝘭𝘪𝘻𝘦𝘥 and 𝘵𝘢𝘹𝘦𝘥).⁣⁣
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And because of 𝘞𝘏𝘌𝘙𝘌 we had cash stored we stopped our money's compounding the second we did so.⁣⁣
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𝗪𝐡𝐚𝐭 𝐢𝐟 𝐭𝐡𝐞𝐫𝐞 𝐰𝐚𝐬 𝐚 𝐰𝐚𝐲 𝐭𝐨 𝐝𝐨 𝐛𝐨𝐭𝐡??⁣⁣
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Buy real estate investments with our savings 𝐀𝐍𝐃 continue compounding interest while likely also earning dividends?⁣⁣
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Well, 𝐭𝐡𝐞𝐫𝐞 𝐈𝐒 𝐬𝐮𝐜𝐡 𝐚 𝐚𝐰𝐚𝐲 𝐚𝐧𝐝 𝐭𝐡𝐚𝐭'𝐬 𝐝𝐨𝐧𝐞 𝐮𝐬𝐢𝐧𝐠 𝐝𝐢𝐯𝐢𝐝𝐞𝐧𝐝 𝐩𝐚𝐲𝐢𝐧𝐠 𝐰𝐡𝐨𝐥𝐞 𝐥𝐢𝐟𝐞 𝐢𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 if we use it as a place to store and warehouse cash.⁣⁣
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In participating whole life policies, a policy owner is able to take a policy loan against (yet not taking from!) the cash value of their policy, no questions asked, and 𝐜𝐨𝐧𝐭𝐢𝐧𝐮𝐞 𝐭𝐨 𝐞𝐚𝐫𝐧 𝐜𝐨𝐧𝐭𝐫𝐚𝐜𝐭𝐮𝐚𝐥𝐥𝐲 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐝 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐚𝐧𝐝 𝐝𝐢𝐯𝐢𝐝𝐞𝐧𝐝𝐬 𝐚𝐬 𝐢𝐟 𝐧𝐨𝐭𝐡𝐢𝐧𝐠 𝐡𝐚𝐩𝐩𝐞𝐧𝐞𝐝 𝐭𝐨 𝐭𝐡𝐞 𝐜𝐚𝐬𝐡 𝐯𝐚𝐥𝐮𝐞 𝐛𝐚𝐥𝐚𝐧𝐜𝐞!⁣⁣
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Yes, that's 𝐘𝐎𝐔𝐑 𝐃𝐎𝐋𝐋𝐀𝐑𝐒 𝐰𝐨𝐫𝐤𝐢𝐧𝐠 𝐡𝐚𝐫𝐝 𝐟𝐨𝐫 𝐲𝐨𝐮 𝐢𝐧 𝐓𝗪𝐎 𝐏𝐋𝐀𝐂𝐄𝐒 𝐀𝐓 𝐎𝐍𝐂𝐄 . And that doesn't include any of the other incredible benefits of whole life insurance!⁣⁣
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Interest on these policies are guaranteed to age 120 and can never change.⁣⁣
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Dividends are 𝘯𝘰𝘵 𝘨𝘶𝘢𝘳𝘢𝘯𝘵𝘦𝘦𝘥 but because of the business model and regulated nature of life insurance you can see from the graphic below that many have been consistent and consecutively paid for well over 100 years and it stands the test of time.⁣⁣
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Funding our real estate portfolio using cash value life insurance is the 𝐎𝐍𝐄 thing we'd do differently.⁣⁣
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And I want you to be aware so you can make a conscious decision on how and where you want to fund YOUR real estate deals.⁣⁣
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𝐘𝐨𝐮 𝐜𝐚𝐧 𝐡𝐚𝐯𝐞 𝐲𝐨𝐮𝐫 𝐜𝐚𝐤𝐞 𝐀𝐍𝐃 𝐞𝐚𝐭 𝐢𝐭 𝐭𝐨𝐨!⁣⁣
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If you'd like to learn more, let's chat - I'd love to help!⁣⁣
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👉 https://calendar.app.google/fNsm3Ct8ePhDxPZM6⁣⁣
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Visit our website!⁣⁣
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👉 https://www.yourbankwithalps.com⁣
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Brandon W. Beaudoin
Founder - Abundant Life Products & Strategies, Inc
Licensed Life Insurance Agent
Infinite Banking Practitioner & Coach Website: www.yourownbankwithalps.com
Book a Call:

https://calendar.app.google/fNsm3Ct8ePhDxPZM6

Cell: 619.306.8823

Email: [email protected]

Proverbs 22:7: Just as the rich rule the poor, so the borrower is servant to the lender

@David Wilhite

That's right! Nice post!

Even though I personally don't (won't) use it to pay off my primary residence there's beauty in the fact that one (including myself) COULD if they wanted to yet never stop earning compound interest (and likely dividends) AND get a lifelong death benefit. That's incredibly powerful.

IBC is an amazing concept when properly understood and policies are properly designed. Not much to argue about....proof is in the pudding.

@Sherry Patterson

Missed it! When's the next one?