All Forum Posts by: Jeffrey Evans

How long would  I have to be moved out and renting my primary residence in order to be able to sell it and do a 1031 exchange?  

thanks in advance.  

Quote from @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.

 I'm not an agent, but looking at that policy it is designed backwards for IBC use.  Yours has a large death benefit and small paid up additions.  If want to use it for IBC you want the smallest death benefit, usually 10 x your age, and the rest as paid up additions.   The paid up additions are what build the cash value up to access for other investments ect.   

I use it and I like it.  Has been discussed many times on the forums here.  Many haters, many like it.   I wish I had done it sooner.  

my policy is with mass.  

@Joe Garretson it has to be designed correctly for IBC use or  it will take many years before it has enough cash value to use.  Like @Ethan G. said I was able to borrow and use money they day after it funded.  

@Kerry Noble Jr I have also.  I agree the main goal should be to use it for investments.  I had the $ to pay off some debt but then the $ is gone.  I instead dumped the $ into a policy and then pulled it out to pay the debt off.  It has been way easier for me to repay and dump the money back into the policy since I know I have access to it if and when I need it.  If just paid the loan off the money is just gone forever.  

@Colin Higgins I have one and have been using it.  So far works great.  I agree I wish I would have known about it and got a policy a long time ago.  

Man these post are like copy and paste.  People either hate them or love them.  Kinda like politics these days I guess. 

Everyone is different and has different goals and situations.  I have one and I like it.  It has exceeded my expectations from when I got it.  I am able to move money back and forth within a day so its pretty liquid.  yet all the money continues compounding as if I didn't remove it, where else can you do that other then perhaps a heloc.  With a heloc you have to pay the minimal monthly payment back.  With IBC policy its up to you to pay as fast as slow or never if you can't (although I recommend paying at least the interest)  

I pretty much use it similar to a savings account.  It allows me to have liquid funds for deals.  It allowed me to give my wife some piece of mind knowing if I get hit by a bus she can pay off the properties ect, it allows me to pass on tax free money to my kids, and it motivates me to save money I otherwise may not have. 

The policy only gets better the longer you have it.  Once you pass the tipping point of having a higher cash value then you have paid into it then any money you put into it you get an instant return on it and can draw out more then you put in that yr.   

There are no fees to borrow.  I think most IUL policy's have a surrender fee.  You would never want to set a policy up that had surrender fees if wanting to use it for investing purposes.  

I am not a life insurance agent or a financial advisor.  Just a normal guy.  to each there own. 

I have never done a project with @Aaron Manship but I can vouch for his willingness to take time to answer my phone calls and answer any questions regarding an area or a rehab estimate ect.  If your like me and want hands off work done and don't want to be picking out tile paint or cabinets ect he is willing to do it all.  I wouldn't hesitate to have him rehab a place.  

Maybe @Rob Bergeron or @Kevin Hart have more details ?