Podcasts about iul

You went looking for Infinite Banking, or maybe "be your own bank," and a max funded IUL came back as the answer: market-linked growth, tax-free access, no downside. On paper, it sounds like whole life, only better. https://youtu.be/UMTiXDmYNok A max funded IUL is an indexed universal life policy funded at or near the maximum premium the IRS allows before the contract becomes a modified endowment contract. It's not a separate product, but a funding decision applied to an ordinary IUL that pushes cash value growth harder while offsetting internal costs. Max funding gets invoked to explain why an IUL didn't work: you just didn't fund it hard enough. But a product that needs funding to its legal ceiling to perform as illustrated says something about the product, not just the strategy. Max funding improves the odds. It doesn't remove the fragility underneath. What Is a Max Funded IUL?Why Max Funded IULs Are Marketed So AggressivelyThe IUL Fees the Illustration Doesn't Show YouWhy Your Credited Return Is Not the Index's ReturnThe Rising Cost of Insurance Inside an IULCan a Max Funded IUL Still Lapse?Max Funding a Whole Life Policy InsteadWhen Max Funding an IUL Makes SenseWhat to Ask Before You Fund OneBook a Strategy CallFrequently Asked QuestionsWhat is a max funded IUL?What does max funding an IUL actually mean?How does a max funded IUL work?Is a max funded IUL better than a 401(k) or Roth IRA?Can a max funded IUL still lapse?Can you max fund a whole life policy instead? Key takeaways: Max funding is a funding strategy, not a distinct product. There's no "max funded IUL" you buy off the shelf. A zero-crediting year isn't a flat year: fees still come out, and growth compounds off a permanently lower base. The insurer can change your cap, participation rate, and spread once a year, without asking first. Max funding defers lapse risk. It doesn't eliminate it. Apply the same instinct to whole life, and you get the guarantees an IUL was never built to offer. What Is a Max Funded IUL? A max funded IUL, sometimes called a maximum funded indexed universal life policy, is an indexed universal life policy funded at or near the highest premium level the IRS permits before crossing into modified endowment contract status. There's no separate product line behind the term, just this definition. A few people write it as "max funded indexed universal life" or shorthand it to "max fund IUL"; all of it points to the same funding decision. Every universal life policy quotes two premium figures: a minimum, the least you could pay and still have a shot at sustaining the death benefit if the index cooperates, and a maximum, the most the IRS allows before the tax treatment changes. Max funding means paying near the top of that range. More dollars in means more dollars exposed to crediting: 10% on $100,000 of premium is $10,000; the same 10% on $10,000 is $1,000. One term worth pinning down: a modified endowment contract, or MEC. The IRS caps how much premium can go into a permanent policy while preserving tax-free access. Cross that limit and the policy still grows tax-deferred, but access gets taxed, including policy loans, tax-free in every other context. (Consult a licensed tax professional on how §7702 and §7702A apply to your contract.) The distinction everything else here rests on: this isn't a different kind of policy, just a decision about how much premium goes into an IUL. You'll sometimes see it called an overfunded IUL, which is just another name for the same funding choice, not a separate product to shop for. And it's worth flagging now: you can max fund a whole life policy the same way. For a full breakdown of how an indexed universal life policy works, see what an indexed universal life policy is. Why Max Funded IULs Are Marketed So Aggressively Before picking apart max funding, it's worth saying plainly: the appeal is real. A max funded IUL has genuine features that draw in smart, financially literate people, and pretending otherwise would make the rest of this article dishonest. It offers tax-deferred growth with tax-free access through policy loans, no annual contribution ceiling like a 401(k) or Roth IRA imposes since capacity is governed by the death benefit purchased, a 0% floor marketed as downside protection, an included death benefit, and in strong index years, the possibility of double-digit credited growth. The most effective version shows up as a retirement play: a tax-free income vehicle for people phased out of Roth eligibility or maxed on contribution room elsewhere. We won't unpack that comparison; we cover IUL-for-retirement here. Bruce and I both make this concession without hesitation: the instinct behind max funding is correct. It flips the usual "buy the most death benefit for the least premium" logic on its head and treats a permanent policy as a place to store and access capital instead. The open question isn't whether to max fund, but which product deserves it. The IUL Fees the Illustration Doesn't Show You IUL fees are disclosed, sitting in the contract right now, but rarely walked through in the illustration or the sales conversation, so buyers routinely agree to a fee structure they've never once seen quantified. Give the product its due: disclosure is a genuine point in its favor. Whole life keeps most costs internal, priced against guarantees, so an actuary can tell you exactly what those costs do to cash value over time. An IUL has no such floor, so the same load fee taken from a smaller balance next year does more damage, and the shortfall compounds forward. One misconception worth correcting: indexed crediting doesn't mean your premium is invested in the index. The insurer manages the underlying assets and hedges its own exposure as it sees fit. Surrender charges also tend to run larger on an IUL than on whole life, relevant only if you actually surrender; whole life's rough equivalent is simply lower cash value in the early years. This is where max funding earns its name: it exists to outrun these fees through sheer volume, which means the strategy's own proponents are conceding the drag is real. The illustration never asks what happens if the funding doesn't outrun it. For the full risk picture beyond fees, see dangerous truths about IUL risks. Why Your Credited Return Is Not the Index's Return The 0% floor isn't free. It's purchased with three mechanisms the insurer can adjust annually: a cap ceilings the credited rate, a participation rate credits only a percentage of the gain, and a spread is a hurdle the index must clear before anything credits. The worked numbers are below. One "uncapped" strategy runs a three-year point-to-point at 60% participation: the index gains 30% over three years, but the policyholder is credited 18%, roughly 6% annualized. "Unlimited" is doing marketing work the mechanics don't back up. MechanismWhat it doesWorked exampleCapCeilings the credited rate15% cap, index gains 25%, credited 15%Participation rateCredits a percentage of the gain80% of a 15% cap, credited 12%SpreadDeducts a hurdle before crediting3% spread, index gains 8%, credited 5%0% floorPrevents index-driven loss, fees still deductedIndex falls 15%, credited 0%, fees still come out The insurer can change the cap, participation rate, and spread once a year, without your consent. It's disclosed, not misconduct, just a term rarely explained. With fifteen indexes and multiple crediting strategies on offer, a policyholder can face well over a hundred permutations, which reads as control and functions as confusion. Now the zero-year mechanics, the single most important thing to understand here. A zero-crediting year is not a flat year: fees still come out, pulled from a smaller cash value, and the next year's crediting compounds off that lower base. A zero in year eight of a $3-million, thirty-year projection doesn't just mean missing that year's interest , it resets the compounding base permanently, and when the index drops, the insurer's hedging costs rise too, so you lose nothing to the index and still lose money. Agents say zero is your hero, then illustrate 30 years at a flat assumed rate, often 6.45% or 6.85%, sometimes a more conservative 5.25% column, without a single zero year anywhere in the projection. Both claims can't be true at once. Average isn't actual either: $100,000 down 20% is $80,000, and up 20% from there is $96,000, not $100,000. For an independent take on these mechanics, see Todd Langford's analysis of indexed universal life. The Rising Cost of Insurance Inside an IUL IUL insurance charges are priced as annually renewable term. The cost re-prices every year based on age, and it climbs. Max funding puts more premium in to help absorb it, but doesn't change the fact it keeps rising. The climb accelerates: something like $10 more from age 55 to 56, then $14, then $22, then $35. Whole life prices base-policy mortality cost across the entire life of the contract with a defined endowment point built in, so early years cost more relative to a small cash value and later years cost less relative to one grown large enough to absorb them. Bruce has personally seen carrier illustrations where mortality cost inside an IUL becomes severe around age 77, with the in-force death benefit graph turning sharply downward within a couple of years, even under continued maximum contributions. That's his observation from specific illustrations, not a universal threshold. That leaves the policyholder in a rough spot decades in: pay materially more than illustrated, or give up a policy funded faithfully for thirty years. This is the cost max funding is supposed to outrun, and the one cost that climbs on a schedule funding can't influence. Can a Max Funded IUL Still Lapse? Max funding reduces lapse risk. It does not remove it,...

Should every dollar go into a Roth 401(k) if taxes will be higher? David McKnight reveals why that instinct could actually be one of the most expensive tax decisions a high-income earner can make when it comes to retirement planning. In this episode, David McKnight addresses two frequently asked questions: "If tax rates are going to be higher in the future, should I be putting every dollar into a Roth 401(k)?" and "Should I be converting as much of my IRA to Roth as quickly as possible?". David believes that the current tax rates are as low as we're likely to see in your lifetime. The national fiscal trajectory is apocalyptic: there is over $39 trillion in debt that's going to increase by $2 trillion per year over the next 10 years, and over $200 trillion in unfunded obligations for Social Security, Medicare, and Medicaid. Despite all of this, politicians on both sides of the aisle seem unwilling to make the tough decisions necessary to address the crisis. Many people hear that taxes will be higher in the future and conclude that every retirement planning contribution should be immediately redirected into Roth accounts. However, if you're a high-income earner contributing heavily into a Roth 401(k) today as part of your retirement planning may actually be one of the most expensive tax decisions you can make. When evaluating whether to contribute to a traditional 401(k) or a Roth 401(k), the question isn't whether taxes will be higher in the future. Rather, it's "Will my effective tax rate in retirement be higher than the tax rates I'm currently paying on the marginal dollar today?". David discusses the so-called Retirement Income Valley, the period of time after your paycheck stops but before social security and RMDs fully kick in. An Ernst & Young study examining what happens when retirees allocate a portion of their retirement savings to a maximum-funded index universal life policy produced striking results. Researchers found that if you could divert 30% of your retirement contributions to an IUL with the goal of saving 3-5 years of living expenses by day one of retirement, it helps shield you from stock market volatility. David stresses that an IUL isn't designed to replace the investment portion of your portfolio, rather to protect it. Mentioned in this episode: David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track The Power of Zero: How to Get to the 0% Tax Bracket and Transform Your Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Ernst & Young

Keith breaks down why global crises, geopolitical shocks, and nonstop "doom" headlines haven't stopped stocks and real estate from reaching near all-time highs, and what that means for investors focused on inflation-resistant assets.  He also discusses Memphis as a surprising cash-flow market poised to benefit from the AI boom, sharing details on an upcoming webinar with Mid South Homebuyers.  Keith is joined by real estate investor and educator Jared Garfield to unpack the "Seven-Figure Solution," a strategy that combines cash-flowing rentals with tax-advantaged life insurance to create liquidity, reduce risk, and support long-term retirement income.  Together, they explore how disciplined portfolio growth, smart leverage, and coordinated tax planning can help real estate investors better align their assets with their long-term financial goals. Episode Page: GetRichEducation.com/619 For access to properties or free help with a GRE Investment Coach, start here: GREmarketplace.com GRE Free Investment Coaching: GREinvestmentcoach.com Get mortgage loans for investment property: RidgeLendingGroup.com or call 855-74-RIDGE  or e-mail: info@RidgeLendingGroup.com Invest with Freedom Family Investments.  For predictable 10-12% quarterly returns, visit FreedomFamilyInvestments.com/GRE or text  FAMILY to 66866  Join Mid South Home Buyers' one-time, free live webinar featuring Keith Weinhold on September 30 at GetRichEducation.com/MidSouth to learn how Memphis' economic expansion could create new real estate investment opportunities, and have your questions answered in real time. Will you please leave a review for the show? I'd be grateful. Search "how to leave an Apple Podcasts review"  For advertising inquiries, visit: GetRichEducation.com/ad Best Financial Education: GetRichEducation.com Get our wealth-building newsletter free— GREletter.com  Our YouTube Channel: www.youtube.com/c/GetRichEducation Follow us on Instagram: @getricheducation Complete episode transcript: Keith Weinhold  0:02   Welcome to GRE. I'm your host Keith Weinhold. The world is about to end again. It's the economic disaster that never arrives. I'll break it down. Then you've been earning money and investing well all these years. How does it all go together? It can culminate in the seven-figure solution, it's about seeing your future today on Get Rich Education. What if I told you that one of America's strongest cash flow real estate markets is also becoming the new brains and brawn behind AI? That city is Memphis, believe it or not. And September 30th, we're going to show you why the smart money is paying attention now, along with an investing opportunity you won't want to miss. Join me, Terry Kerr and Matthew Van Horn of Mid South Homebuyers, the largest turnkey company in Memphis with more than 6,000 homes under management, for a free live webinar, the likes of which I've never done before, we're going to look at what billions in new investment could mean for jobs, housing demand, neighborhood appreciation, and your portfolio. Everyone who attends live will also get exclusive access to the best deal terms Mid South has ever offered. Reserve your free seat at getricheducation.com/midsouth again that september 30. Don't say we didn't tell you. Save your spot at getricheducation.com/midsouth.   Speaker 1  1:39   You're listening to the show that has created more financial freedom than nearly any show in the world. This is Get Rich Education.   Keith Weinhold  1:55   Welcome to GRE from Kankakee, Illinois, to Cherokee, Iowa, and across 188 nations worldwide. I'm Keith Weinhold. This is Get Recid Education, and the world is about to end. Even if you survive, your portfolio surely won't. Oh, jeez. At least that's the impression you get from mass media and what I'll call the Doom Scroll Industrial Complex. Fear creates urgency. Urgency attracts eyeballs. Eyeballs attract ad dollars. And I guess that using a slogan like "everything will probably be fine" well, that's never been a great ratings strategy. Now, can what has happened since 2020. Just this cheery little sequence: COVID, then Ukraine, Israel, Gaza, tariffs, and then the war in Iran. All that just since 2020. I mean, that right there sounds less like an economic timeline and more like a movie plot, or that the world is repeatedly spinning the wheel of misfortune. Yet after all of that, what is the result? Both stocks and residential real estate are near all-time highs. Apparently, the apocalypse has been postponed yet again-at least economically speaking. Now let's zoom out and break down these threats and a few more, all just since 2020, because 2020 is the year where, of course, you had the COVID-19 pandemic, economic shutdowns, the fastest major stock bear market in history, supply chain breakdown. You saw empty shelves, and there was unprecedented government intervention from the Paycheck Protection Program to stimulus checks to mortgage loan forbearance. Then, in 2021 and 2022, you had post-COVID inflation and supply shortages. Now, this was more of a result, not strictly geopolitical, but a major investment threat, and that led to aggressive interest rate hikes. From 2022 to the present, you have Russia's invasion of Ukraine, energy and food shocks came from that, sanctions, instability over in Europe, and really a heightened nuclear risk in 2023. You had the U.S. regional banking crisis. Remember SVB, yes, Silicon Valley Bank, Signature Bank, First Republic. They raised fears of a financial contagion that would spread like fat. Than a secret in a small town, it actually made me buy some gold. From 2023 to the present, you had the Israel-Hamas war and this broad Middle East instability, Hezbollah attacks, Houthi attacks, Red Sea shipping disruptions. It's almost like a geopolitical group project. And then from 2025 to the present, you have renewed U.S. tariffs and a global trade war, and this year you have the U.S.-Israeli war with Iran and the Strait of Hormuz disruption. That is the biggest current geopolitical investment threat because it combines all of these things: war, oil disruption, inflation, higher interest rates, and a recession risk. So it's a lot like this particularly unpleasant smoothie that's been blended together.   Keith Weinhold  5:55   All right. Well, all of that-that is just an absurd amount of uncertainty and disruption only since 2020, and though major markets are at all-time highs in the face of this, let's acknowledge that some were hurt here, like apartment building owners vulnerable to interest rate resets, and certain commercial sectors like office. Even worse, let's be sensitive to the fact that COVID in wars have resulted in a real loss of life. GRE's enduring strategy of primarily owning long-term residential rentals with fixed-rate debt has been comparatively really resilient. In fact, these calamities-they probably made you better off from the inflation that it has spurred. More people work from home. Well, that means that they're consuming our product while higher inflation debased our debt and jacked up our property values and our rents. And you know somehow every. single generation thinks that their collection of crises is uniquely terrifying, and it is not. And what do I mean by this? Well, in the 1980s, people feared war with the Soviet Union, the Cold War. A global population explosion so bad that millions or billions of people would surely die from hunger. You had the AIDS crisis. You had a hole in the ozone layer. Well, all those things. Virtually zero investors make decisions based on that stuff: an imminent Soviet attack or mass starvation from overpopulation. There is one thing that is 100% certain here, and that is that more shocks are coming. In case you don't want to sleep well, you can get worked up over the certainty of future calamities, artificial intelligence is making cyber attacks faster and more scalable. AI has even created entirely novel viruses. A confrontation between China and Taiwan that could create risk in the semiconductor space.   Keith Weinhold  8:18   A blockade that might disrupt the world's advanced chip supply, creating more inflation and more uncertainty. Here is what's changed, though, for what investors care about. You know what has changed with today's set of calamities versus those of the 1980s and earlier, because there is something, and it's a big deal for investors. Here's what's changed: recent history shows that the government does more to intervene during disasters, stimulus checks, liquidity programs where they're printing trillions, bailouts, pushing interest rates down to almost zero, quantitative easing. How about a foreclosure moratorium? Anything you know during COVID, it was a lot of these things, and it was the CARES Act, and it was a student loan payment pause. I mean, the Federal Reserve even set up emergency credit facilities. We now know that when the economic building catches fire, policymakers they rarely stand around admiring the flames. They just flood the place with currency. So the best investors they keep prudently building real estate portfolios in the face of risk, not the absence of risk, because the latter does not exist. This incessant government intervention, whether you agree with it or not, it gives you more safety cushions the next time that things fall apart. That's why what appears risk. Is still risky, but less so. So there is more incentive to take on prudent risk than I've ever seen. You know, no politician wants America to fall apart under their watch. So increasingly, they'll just paper over the problem by printing, printing, printing, and then, therefore, the resultant inflation, the consequence of this, that can be dealt with under the next president's watch, not theirs. In fact, future calamities they almost make you want to own scarce real assets that benefit from inflation, not a hedge, a benefit. Trying to time every war, election, banking crisis, tariff announcement, virus, and Fed decision. Trying to time all of those things-that is usually ineffective. You either own more assets, or you get left behind in everything that's happened since 2020. That just underscores this. In fact, Berkshire Hathaway, the closely watched company that Warren Buffett ran for a long time, but he still has influence in.   Keith Weinhold  11:16   You know, they recently began moving out of cash and into assets, they ended their long net selling stretch. In fact, in the latest quarter ended, they've now done the most buying that they've done since early 2022. They have jumped back in the game. It appears that Berkshire Hathaway got tired of sitting on the sidelines and seeing others make gains, and they're pretty bullish on housing too. They bought a home builder. The bottom line here is that shocks are going to keep arriving, and yet productive assets and well-financed residential real estate has repeatedly survived them and just continued appreciating. Don't wait for a risk-free world because you'll wait forever. When you evaluate all these calamities, just since 2020, again, COVID, Ukraine, Israel, Gaza, tariffs, and war in Iran, and then you realize that both real estate and stocks are near all-time highs anyway, and the government keeps backstopping asset owners like never before. This is just a fresh angle on how much better off you are when you prudently own more inflation-benefiting assets sooner. I want to tell you about something called the seven-figure solution. You've been here listening to me weekly since 2014. You've been earning money. You've been investing well, and now you're going to see how it all goes together. It's about making sure that your real estate and your other assets appropriately fund your retirement in a way that gives you protection against market downturns, a tax advantage pool of liquidity, the death benefit of a life insurance policy, and actually introduces you to a new form of leverage all at the same time. Now the liquidity here is key because this is where a 401(k) or IRA limit you, they have taxes and penalties if you want to use those funds early. This doesn't, but the seven-figure solution-it's not just for retirees. In fact, our own in-house investment coach Narayish uses something like this, and he is in his 30s. Let's discuss it, and then you'll see where I have an invitation for you, where you can get involved. I'd like to welcome in a guest we last had on the show a few years ago.   Keith Weinhold  13:54   He's a frequent guest on popular shows, including our friends over at the Real Estate Guys Radio Show, and this guest has also been a terrestrial radio show host himself. He's a long-time real estate educator and an active investor, just like you and I. So he speaks from experience and not a textbook. He's the creator of what we'll discuss today, called the Seven Figure Solution. Welcome back to the show, Jared Garfield.   Jared Garfield  14:21   Hey, it's great to be with you again. Thanks for having me.   Keith Weinhold  14:25   It's so good. Now you're with the Haven Bridge Group, and you help people, especially real estate investors, with what's called the seven-figure solution. Tell us about it.   Jared Garfield  14:37   it. Well, Haven Bridge, we get the name for that because people are really looking for a haven of safety, and the bridge is kind of what crosses the gaps that could kind of destroy your wealth, and it's the path to get there. So we want to take people on a path to safety, and the seven-figure solution is the idea that if you're going to be drawing out even 4% per year to not outlive your money, because people are living now. To 8590, 95 years old, and so that means you could have 35 years in retirement. And with inflation and different things like that, you really have to have a lot bigger nest egg than what most people realize. So a seven-figure solution is how to get to more than a million dollars liquid that you can draw on in a tax advantaged manner for the rest of your life, while also having living benefits. And we pull real estate in with it because we want people to have 10 or 15 or 20 rental properties by the time they retired. That they 1031 exchange regularly, so that they're always keeping tax advantages. So that even in retirement you have strong tax advantages, and ultimately we think that when you're 65 or 70, you might want to go from 30 single-family houses to 1031 exchange into one institutional asset that's a little bit less management intensive.   Keith Weinhold  15:57   Okay, so this is a tax advantage vehicle that real estate investors can use during their investing career, and those tax advantages then really convert into something that you can use in retirement as well.   Jared Garfield  16:11   Yes, what it does is it's a vehicle that instead of saving the money from your cash flow from your rental properties in the bank, we say, well, why wouldn't you rather invest in something where it grows tax-free, number one, and then number two, you don't have the penalties like you would with a 401k, where you get taxed and you get penalized 10% if you pull it out. It's liquid, usually about 80 to 90% liquid, so you can pull from it whenever you like, and you can use it for down payments to grow your real estate portfolio. But you can earn sometimes between five and even seven or 8% in a tax advantaged manner where you're not taxed on it, but you're earning a much higher return than if you put the cash flow into a bank.   Keith Weinhold  16:51   All right, so you're building this tax advantage pool of capital that grows over time, and this is important to have some liquidity. You know, Jared, I've often talked to our audience, about three to 5% of your portfolio value ought to be kept liquid. Maybe with a vehicle like this, you would want to put in more of that because real estate investors we have expenses, so you have this liquidity to cover things like vacancies and major repairs, or perhaps you could even use this account for future down payments on additional investment properties. Is that how it's utilized?   Jared Garfield  17:27   Yeah, absolutely. And I get it partially this way because in my early 20s, I got up to where I had about six rentals, and at the time, I also owned a real estate brokerage, and I was doing very well. I was making a six-figure income and things. And what happened is, I back when a   Keith Weinhold  17:41   six-figure income was a big deal.   Jared Garfield  17:43   Yeah, back in the early 2000s, it was a little bit better money. But the funny thing was, I had four rental properties that all went vacant at the same exact time, and so now all of a sudden, I was paying like 4500 bucks a month in mortgages, not counting the house I lived in, but I had to cover four mortgages on four of my rental properties all at the same time, and I hadn't saved the cash flow, so I didn't have a huge emergency fund. All my liquid capital went into down payments and into renovation money to rehab the properties. Okay, and so it put me in a real bind, and I was out driving a Volvo S80 around throwing two paper routes in the mornings, and then going to my real estate brokerage after my paper routes to cover those rental properties. And so this was basically meant as a way to say, okay, this is a way that I have the liquidity. I'm getting a higher return, but now my tenants are not only buying me the houses, but they're also giving me a couple million dollars in life insurance, and they're wrapping my investment component or the cash value of that, the cash value part of the policy. They're wrapping that in a way that it grows tax-free, so it just accomplishes a lot of things. But the other thing that's a beautiful thing about it is there's a lot of things that we call living benefits.   Keith Weinhold  19:02   All right, so you have the living benefits and the tax advantages, and I know how you have pointed out that this can save an investor 10s of 1000s of dollars in taxes per year and hundreds of 1000s or more over time. Can you tell us more about that?   Jared Garfield  19:20   Yeah, because what happens is the money that goes in is growing tax-free, so you don't get taxed on any of the growth. But what we really like about it is, let's say that you're cash-flowing $2,000 a month off your rental properties, and you're putting 2000 a month into this policy. Usually, after the first year, if you're max funding, 80 to 90% of that's liquid. So if you've got 24,000 sitting in there, you've got access to 89 to 90% of the money. So it's pretty liquid. But what happens is over a 20 or 30 year period, that money could turn into three or 400,000 a year that you can pull out in the form of policy loans. And by doing that, it's not taxed. And you can pull that out throughout your retirement tax-free. So if you were paying 25% in taxes and you're pulling out 200 grand a year, that's $50,000 a year in retirement that you're saving in taxes. But that could be over a 20 or 30-year period. So over 20 years, that 50,000 could end up being a lot of money. I mean, 500,000 over 10 years, a million over 20, and so that means you don't have to accumulate as much. But a lot of our investors love it because they'll save it up with discipline, and then that way it's there if the furnace blows. So it makes your real estate safer, but it also becomes your down payment funds to expand your portfolio.   Keith Weinhold  20:40   Okay, the seven-figure solution is the vehicle that we're talking about here, and what part of the IRS code, just briefly, is it that gives this tax advantage?   Jared Garfield  20:51   It's Internal Revenue Code Section 79 that allows it to grow tax-free. In the 1980 s, doctors and a lot of very wealthy people were using this to the point that IRS changed the laws. They went and sued the insurance companies because doctors would go in and dump $2 million in, and they would buy a $2 million life insurance policy. So they were self-insured, which meant that they didn't have any cost of mortality on it. So they basically got all the benefits of the tax-free growth and the tax-free pullout. And the IRS said, "Wait a minute! We think you're doing tax evasion. So what they did is they came around and they said, "We're not going to let you use this loophole anymore for the very wealthiest people to have this. So they came to a compromise, and the compromise was that if you wanted to put in 2 million, you had to maintain a corridor where there had to be a little bit higher amount of life insurance. So you might have to buy a $2.3 million policy, but then you could still dump, say, $2 million in and have all the tax advantages. It's a strategy that's been used for over 100 years by families like the Rockefellers and the Hunts and J.P. Morgan. The very wealthiest families have always used these strategies to grow and protect their wealth.   Keith Weinhold  21:59   Okay, so it's a part of the tax code that allows cash value to accumulate within and be withdrawn from a life insurance policy tax-free.   Jared Garfield  22:11   Correct, and it gives you living benefits, which I alluded to a minute ago. And the living benefits are if if you end up having to go through things like long-term care, disability, if you can't perform, you know certain functions for a certain period of time, chronic illness, critical illness, terminal illness. If any of those things happen to you, you can borrow against the policy and have access to money during those things that would normally decimate your wealth, because you can actually access the death benefit in advance.   Keith Weinhold  22:42   Now I know a little about the six risks. Tell us about that.   Jared Garfield  22:47   Well, Keith, there are six risks that all investors face regularly. The first one is inflation erosion, and that means that your purchasing power often ends up leaking out of your balance. And the balance might look fine, but inflation can eat away at it. So even if you've raised a lot of money, if inflation means that you can buy half as much five or 10 years from now, then you know your wealth isn't as big as you thought. The second is the volatility setback, and that's sequence of return risk. That means that if you retire on a bad year where things really bad, stock market drops, you could end up using your money at a time where it really weakens your wealth because it may have dropped by 50% So if you had a million, now you have a half a million, and you're spending 100,000 a year. At the end of year one, you might only have 400,000 left. So sequence of of return risks from volatility setback, tax drain. That's just the compounding cost of an uncoordinated tax picture can really be a problem, and then the next one is liquidity. If you don't have liquidity and you've locked up all your money and you can't access it until you're 59 and a half without significant taxation and 10% penalties, the liquidity lock is a problem. There's the longevity paradox. What happens if you outlive your money, you know. So living longer is a benefit, but it exposes you to where you might not have enough money to live on in your latter years. The last two are care avalanche, and that is if an unexpected health event happens at the wrong time, it could really destroy your wealth because medical costs have spiraled out of control, and then the last one is the line to land, and that's only one of the six that's really about growth.   Keith Weinhold  24:28   Right, only one of the six of those was about growth. I can't stand the longevity paradox. Yeah, we think we all want to live a long time, but then it's more difficult to fund living a long time, and if you outlive everybody, nobody shows up at your funeral either. The longevity paradox-one of the six risks that the seven-figure solution can really help you with. Now, tell us more about funding it, so you can get a good cash value balance in. There, I know that one way you do it is actually with short-term rentals instead of a paycheck.   Jared Garfield  25:06   We love short-term rentals, especially for our highest net worth clients, because the reason is is the bonus depreciation of the big beautiful bill. Oh, right! You could take up to like 150 or even $200,000 in year one, they take that depreciation that they used to spread out over a whole lot of years, and they make it to where if you get with your CPA and you analyze your short-term rental, you could potentially take all of the furnishings, all of the artwork, all of the dishes and things that are in the property. Sometimes they'll let you take components like the appliances, the air conditioning unit, the furnace, and they'll let you take it all in year one instead of having to line item it and spread it out over you know 27 and a half years. So what this means is, if you have a short term rental, then you you might get like 150 to 200,000 tax break in the first year on the right property, but it's better than that because instead of having to have like 750 hours to hit full-time real estate professional status, it cuts the hours that you have to have significantly down. I think it's more like 150 hours or something like that, or 300. It's like half the hours, and so you can hit the benefits of taking unlimited passive loss much easier if you have a couple of short-term rentals.   Keith Weinhold  26:24   You're listening to Get Rich Education. We're talking with Jared Garfield about the seven-figure solution, something that takes some time to understand, but it can give you a tax-advantaged pool of capital that grows over time, and it also creates this overall tailwind, not just during your investor life, but then it provides tax advantaged retirement income at the same time. More on this when we come back. You're listening to Get Rich Education. I'm your host Keith Weinhold. What if you got your mortgage loans the same place I get mine? You sure can at Ridge Lending Group and MLS 42056. They provided GRE listeners with more loans than anyone because Ridge specializes in investment property. They'll help you build a long-term plan for growing your real estate empire with leverage. Start your prequal and even chat directly with President Caeli Ridge while it's on your mind. Start at ridgelendinggroup.com, that's ridgelendinggroup.com.   Keith Weinhold  27:25   Let me ask you something: If you've worked hard to build wealth, is your money positioned to actually support your goals? A lot of accredited investors leave capital sitting in cash because it feels safe, but inflation and missed income opportunities can quietly erode its value. Freedom Family Investments offers freedom notes for investors seeking structured income backed by real estate. It's a straightforward approach built on real assets, not speculation. And full disclosure, I'm an investor myself. What I like is that their team walks you through how it all works, so you can decide if it aligns with your portfolio and income goals. Every investment carries risk, and nothing is guaranteed. But with a track record of consistent, on-time investor payouts, they built real credibility. Go to freedomfamilyinvestments.com to book a clarity call, or text family to 66866. That's family 266866. This is the   Speaker 2  28:28   Real Wealth Network's Kathy Betke, and you are listening to the Always Valuable Get Rich Education with Keith Weinhold.   Keith Weinhold  28:46   Welcome back to Get Rich Education. I'm your host Keith Weinhold. We're talking about the seven-figure solution with Jared Garfield. Something that can be a particular benefit to real estate investors both during your investing career and then once you're in retirement as well, and this can take the form of either an indexed universal life policy or a whole life policy. There are a lot of wrong ways to do this and wrong things to get into. We're talking about the right way. Part of that is funding it as best you can. Can you tell us more about that?   Jared Garfield  29:20   Well, there's a lot of different ways to fund it. A lot of our clients will come in. We have some people who will use rollovers if they're nearing the end of retirement. Some people will roll over a 401k into a cash value life insurance policy because they can do it over a five or seven year period, and they pay the taxes when they roll it over, so their taxes go up a little bit for five or seven years of retirement, but then what happens is that means that during their retirement they're not taxed on the income all the way through retirement, so that can save really significantly. But a lot of our clients will do a flip and dump 40 or 50,000 a year in by just saying I'm going to do one flip a year and use that to. Fund the whole thing, or they'll take the cash flow and dump the cash flow into here instead of the bank, just so that they get the living benefits and they get the much higher return with still 80 to 90% liquidity. So could be cash flow from rentals, could be money from a flip, or sometimes some of these short-term rentals can make 20 to $30,000 a year, and if you get $100,000 tax break, you have more money that's not going to Uncle Sam, and then because that's your discretionary income now, because of the tax break, you could use that money to for down payments to grow your portfolio or to do a flip.   Keith Weinhold  30:35   Now, Jared, I sort of think of the cash value that you're accumulating in this policy as safe money that grows at a slow to moderate steady rate, but if it rarely or ever loses value, can you tell us more about that and the rate of return expected in the policy?   Jared Garfield  30:52   Yeah, absolutely. With the IULs, it's going to depend a little bit upon the carriers and stuff like that, and whether you go with a mutual company and stuff like that. It can vary, but a lot of times people are going with things that are what we call indexed. So you can actually index it to the S and p5 100 if you think that we're going to have a bull market and the market's going to really go up strongly. You can index it to the market, and sometimes they'll have a participation rate where they'll say, "Okay, you can participate up to 12% So if the stock market does 17% the most you can make is 12% So you're giving up a little bit of upside, but that's still not nothing. I mean, that's not three or 4% You can still make you know 10 or 12% that year, but you're giving up the part above the participation rate. And the reason that you do that is if the market tanks and drops by 30 or 40% The worst you can do is 0% return. Zero is my hero because you didn't lose anything. So if you had a half a million sitting there, you don't go down to 250 and then wait eight years to get back to break even. Instead, you're still at half a million. And if the market goes up next year by 20% and you had a 10% cap. Then your half a million, you know, is now at 550,000. When everybody else, if it went up by 10% they're at half the amount that they had.   Keith Weinhold  32:13   You have a story or example of how you've helped somebody with this, because I know a lot of investors that are passionate about utilizing the cash value inside an insurance policy tell us.   Jared Garfield  32:28   Well, I've got one friend who's a developer, and he did like a $5 million policy. And every time he flip a subdivision or flip a house, and let's back   Keith Weinhold  32:36   up. Does a $5 million policy mean that's the death benefit?   Jared Garfield  32:40   Yeah, that's the death benefit. Thanks for catching that. That's the death benefit, but that also has a correlation to how much money you can dump into it. So if you have a $5 million policy, you can dump a lot more money in for the tax free growth. And the quicker you hit that death benefit amount, at that point you're self-insured, and so at that point you really don't have cost of insurance on administering the policy hardly at all, and so at that point, when you're what we call self-insured, the return on the investment becomes a lot better. But this particular developer was able to use this policy because he had so much cash value in, and if he sold a house, he'd take 40,000. If he sold 10 a year, he might take you know 400,000 and dump it into this policy, and so it made him bankable. And he was able to use the money to go out and do new subdivision developments because the bank would actually use the policy as the collateral to be able to give him loans at much lower interest rates.   Keith Weinhold  33:38   That's valuable. Tell us about that. I don't want to use the wrong words here, but then effectively with this example, are you borrowing against the funds in the policy? So therefore, you can get those dollars working for you somewhere else, all while simultaneously the cash value continues to compound and grow. Sort of another form of leverage.   Jared Garfield  34:01   Correct. What they basically do is they basically freeze part of the amount and say, okay, we're using this as the collateral and stuff like that to be able to do the loan. But if it grows and and makes 7% you're still making the money off of the money that's sitting in there. It's just collateralized as part of the loan. And some people will even use it to like go buy a car, like instead of buying a car and going getting a bank loan and paying 7% to the bank, they might borrow money out, go pay cash for the car from the life insurance policy loan, and pay 2% instead of 7% But they're paying it to themselves, and as long as they're paying the interest to themselves, if the money that they borrow out could potentially still earn the same money and earn 7% even though you had borrowed out. So it's doing two things for you at the same time, as long as you're paying that loan interest. But and that depends on the option that you take when you do your loan.   Keith Weinhold  34:54   We love leverage around here. Leverage trumps compound interest. In so many ways. Oh, I'm really glad that you told us some more about that using the funds in more than one way at the same time. Tell us more about what it costs for the investor, the costs of setting this up, and then what some of those trade-offs are, Jared.   Jared Garfield  35:18   Well, that really depends on the individual. I mean, everybody has to sit down and be able to decide what is acceptable for them. You know, a lot of times people will want to max fund the 401k that they're doing at least just to the amount that's matched. But then after that, this could be a great place instead of putting a whole bunch more money into a 401k. Some people will elect to say, "I'm going to put the matching portion into my 401k, but then I'm going to take my cash flow from my real estate and money that I could have contributed to other alternatives and put it into this because I want the liquidity. I want to be able to leverage this money and pull it out without any restrictions. That as long as I can pull out 80 to 90 percent, I could go buy a car wash, or I could invest in a business, or I could, you know, do whatever I wanted to. I could loan it to my kids for their college and make them pay me loans back to my policy. There gives you a lot of flexibility to do it. But the thing that we love about it is we'll do what's called an illustration, and it may end up if you start at the right time, it could be a six-figure passive income stream at retirement, and then if you have the real estate, because this helped you grow your portfolio, where without doing the strategy, you might have ended up with say 10 properties. We might be able to get you to 20 or 30 properties working together as a team with your real estate coaches and stuff like that. Then we can potentially grow your real estate portfolio, and what we want to do is 1031 exchange every seven to eight years. I don't believe in holding properties for 30 years.   Jared Garfield  36:47   I believe in exchanging them every seven to eight years because when the tax benefits have been used up, if you exchange to twice the size portfolio, you have better appreciation on a portfolio worth twice as much. But that new value, you still get the depreciation advantages, where the old value that was half, you know, the depreciation is used up. So you're you're getting new depreciation on the higher value assets, and then our goal would be that by the time you don't want to be involved in managing the property managers, that at some point you're going to have a 200 unit apartment complex with on-site management, and at that point you don't have any financial worries really because you're 1031 exchanging into those apartment complexes, but you have so much equity that you're still maintaining depreciation during your retirement years. When most people who have lesser plans don't have the tax advantages,   Keith Weinhold  37:41   I love that you said so much of that, and to you, the listener, Jared is licensed to do this, and our own in-house investment coach. You mentioned coaching. Naresh has the proper licensing as well to holistically help integrate this into your investor life. And for example, yes, we are rarely of the mindset that you would hold a property for all 30 years because after seven to 10 years, your leverage ratio gets worn down, and then additionally, if you're buying turnkey properties, oftentimes that's when capex expenditures start to enter into the picture. So yes, oftentimes we do these seven to 10 year holds.    Jared Garfield  38:23   I love that. Yeah, that's a really really good strategy, and and it always makes it to where you can grow so much bigger portfolio by not being taxed through that exchange. And you know, believe it or not, there's actually even ways when you have extra cash boot, they do allow if you notify them in advance. Sometimes you can take some of the cash boot on the exchange and roll it into some of the products that we utilize.   Keith Weinhold  38:47   For more specifics, I know you said it's based on one's individual situation, but how much does it cost to set up a policy? And then, are there any ongoing maintenance fees? Can you give us more specifics there?   Jared Garfield  38:59   So, there's small fees to administer the policy because you have people who are trading and doing different things and working within the policy for the funds. But usually, you can set policies up as low as 100 or even $200 a month. We don't usually recommend that because you want to max fund it. Usually, when you're doing these strategies, if you're just doing $100 or $200 a month, you're basically buying life insurance, but you're missing a lot of the benefits because what you want to do is to be able to max fund it. So what we like people to do is get as minimum life insurance. That's not in our advantage because we get paid based on the premium of the amount of life insurance you get. But you get the smallest amount of life insurance for the amount that you can max fund. I would much rather have somebody get a $500 a month policy that, let's say, they could put you know a thousanmd a month in or something like that, than to have somebody get $1,000 a month policy where they're paying a thousand a month but they can't max fund it because by max funding it you're maximizing the growth component of the cash. Value, and so it depends on how much you want. But you can go anywhere from $100 or $200 a month to we have clients that will dump $20,000 a month in because they really want to shield as much money as they can from tax growth.   Keith Weinhold  40:15   Tell us more about who the seven-figure solution is for and who it's not for.   Jared Garfield  40:20   Well, if you're living month to month and you don't have discretionary income, it's probably not a good solution. In that situation, you probably want to get term insurance and just make sure that you cover catastrophic things. But if you've got discretionary income and you've got an extra four to $500 a month that you could use to max fund, we figure most people need life insurance anyway, and the way that we teach it, when you mix it with real estate, rather than pulling it from your monthly budget, doesn't it make a lot more sense to let your tenants buy the houses for you, but also pay for a half a million or a million dollar life insurance policy for you, where the tenants are covering the savings for anything that happens at the property with capex or vacancy or damage, and at the same time covering life insurance and potentially a six-figure passive income that's tax advantaged at retirement. So I pull the money out from other assets and let the assets cover this asset.   Keith Weinhold  41:18   Oh well, Jared, this has been great. Before I ask you if you have any last things to tell the audience about the seven-figure solution, I invite you, the audience, to join us. It's going to be Jared and our own in-house investment coach, Nareesh, bringing you a live online event that you can join from the comfort of your own home next Thursday, the 27th at 8 PM Eastern. You can register now; it's free at grewebinars.com because there are a lot of moving parts, and it does take some time to wrap your head around this, benefiting from the cash value of an insurance policy. And this way you can have a Q and A, and you can get answers in real time at this event. It's called the Seven Figure Solution: Build wealth, reduce risk, and create tax advantage retirement income through real estate. Again, it is next Thursday, the 27th at 8p.m. Eastern, you probably have generated some questions inside your head while you're listening to this, and you can sure have them answered there as you're going to learn a whole lot more about it next Thursday. This could help a lot of people. Jared, do you have any last thoughts?    Jared Garfield  42:38   I think the only thing is that we like to work with the team. We like to work with your CPA. We like to work with your real estate investment coach. I used to be a coach and trainer for Robert Kiyosaki, who wrote Rich Dad Poor Dad, and he always talked about power teams. And so we want to be able to be a part of your power team and work with your other advisors to help you implement something. We're not here to give you tax advice. We want you to be able to work with your investment advisors and your CPAs, and just be a part of the team. But I would point out that over my career, I've owned hundreds and hundreds of single-family cash flow rentals, duplexes, fourplexes, apartment complexes. I've done some land development, and I implement these strategies myself. I had 17 Airbnbs, and so these are the strategies that I implemented as a full-time real estate professional. I felt like that this strategy of having a seven-figure solution could help you to avoid some of the pitfalls that I experienced in my 20s.   Keith Weinhold  43:32   So much all comes together for one pretty comprehensive solution. It's the intersection of growing your portfolio, getting tax advantages and having the death benefits of insurance and more all coming together next Thursday, so that you can learn more. Jared, it's been great having you back on the show.   Jared Garfield  43:52   Thanks, Keith. Always glad to join you.   Keith Weinhold  44:00   Integrate the seven-figure solution the GRE way, where we have this conscientiousness about leverage and cash flow. In this case, it's how to prudently leverage a life insurance policy. When it's time to tap your cash value, you take what is a policy loan, not a withdrawal, because you're borrowing against your cash value, hence using the funds in more than one place, and the IRS does not tax loan proceeds. This reminds me of a billionaire and how they borrow against the value of their stock. That way, they don't have to sell their assets. This is similar to what you can do with this. Another thing is that you know real estate investors are not used to a volatile ride because our asset values stay stable. You heard Jared mention the acronym IUL there. That's an indexed universal life policy. It's a real benefit. That says you tie yours to the S and P five hundred. Well, that index was down 18% in 2022, and that your cash value can have an upside ceiling and loss protection on the downside-an option that you'll care more about as you get toward retirement. In 2008, the S&P was down 37% so the math is cruel on value losses. In fact, it's even worse than it sounds because if you're down 30%, then you need a 43% gain just to get back to even. That is just math.   Keith Weinhold  45:39   There are some mistakes to avoid here, and you don't just want to set up your seven-figure solution off of a website. And it is based on products that you might have heard of from companies like Nationwide and Mass Mutual. I strongly encourage you learn more, see how it all goes together, learn how the seven-figure solution compares to other vehicles like a Roth IRA, 401k, 721 exchange, and 1031 exchange. This is very much about seeing your future. You've been listening to me here every week for almost 12 years, earning money from your day job, building your real estate portfolio, either from our investment coaching or on your own. This is how it all goes together. Next week with Jared and GRE investment coach Naresh. By attending live, you can have your questions answered in real time. One last time, you can sign up for the event for next Thursday, the 27th at 8 PM. Eastern, 5 PM. Pacific. Learn about something that's potentially really valuable to you: the seven-figure solution at grewebinars.com. Until next week, I'm your host Keith Weinhold. Don't quit your daydream.   Speaker 2  46:59   Nothing on this show should be considered specific, personal, or professional advice. Please consult an appropriate tax, legal, real estate, financial, or business professional for individualized advice. Opinions of guests are their own. Information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Get Rich Education LLC exclusively.   Keith Weinhold  47:26   The preceding program was brought to you by your home for wealth building, getricheducation.com  

Is indexed universal life (IUL) or variable universal life (VUL) really better than whole life insurance for the Infinite Banking Concept? In this episode, Paul Fugere and David Befort break down a real policy illustration — including a letter recommending a premium increase from $55 to $829 — and explain why "not guaranteed" appears on nearly every page.This breakdown examines the specific mechanics of indexed universal life insurance and variable universal life policies. If you are currently considering these options for your financial portfolio, it is essential to understand the structural concerns raised by industry critics. We analyze why these products often fail to meet the projections presented during initial sales pitches.By comparing the reality of IUL vs VUL, we highlight the potential risks that policyholders frequently overlook. This discussion is designed for anyone evaluating complex life insurance products and seeking clarity on whether they truly serve your long-term financial goals. We strip away the sales terminology to focus on the actual performance expectations versus the marketing promises.JOIN OUR FREE SKOOL COMMUNITY - https://www.skool.com/ibc-community-7282VISIT OUR WEBSITE FOR MORE RESOURCES - https://thewealthwarehousepodcast.com/AND - https://cospark.us/Chapters00:00 Introduction and episode overview01:57 Personal updates and health insurance alternatives04:00 Deep dive into universal life, VUL, and IUL policies09:56 Risks and costs of universal and indexed universal life insurance15:08 Non-forfeiture options and policy flexibility20:06 Comparing returns and performance of different policies25:00 Market caps, fees, and risk factors in IUL and VUL29:58 The importance of guarantees and the banking function35:02 Nelson Nash's perspective on insurance and banking40:08 Tax implications and policy surrender risks45:00 Questions to ask your insurance advisor50:13 Summary and final advice on life insurance choicesMusic provided by SoundStripe code: 60CKVUXW2ZLFRX4LDISCLAIMER: Licensed Authorized Infinite Banking Practitioners. Educational purposes only. Schedule consultation for personalized advice

If you've spent any time reading about indexed universal life insurance online, you already know the greatest hits. The insurance company will slash your cap whenever it feels like it. The illustration is a work of fiction. The policy will quietly implode under the rising cost of insurance. The "tax-free" retirement income strategy ends with a surprise tax bill on money you never actually saw. And the big one — eight out of ten IUL policies get thrown out within twenty years. We've been at this for a couple of decades now, which means we've watched most of these predictions get made in real time. So on this episode we did something the critics rarely bother to do: we went looking for the evidence. Not the mechanism — yes, every one of these things can happen — but the incidence. How often does it actually happen? What we found is an asymmetry worth talking about. A couple of these worries are legitimate and well documented. The gap between what a back-tested index promises and what it delivers once real money is on the line is real and measured. And the industry genuinely has spent more than a decade rewriting illustration rules to keep pace with product design. But most of the scarier claims come with no data to back them up at all. The "8 out of 10 fail" number isn't in any published study we could find, and it doesn't even hold up under basic arithmetic. The exploding-cost-of-insurance horror stories are real for the handful of people they happened to — and completely unmeasured for everybody else. We walk through all five worries, name who's making each argument, and separate what the evidence supports from what it merely lets you imagine. We're honest about the spots where the critics land a punch. And we get into the Kyle Busch–Pacific Life lawsuit, because you've probably seen the headline and almost certainly drawn the wrong conclusion from it. Here's the through-line: almost every one of these worries describes something that can go wrong, and almost none of them tells you how often it does. That's not the same as saying nothing goes wrong. It means the real risks live in how a policy is designed, funded, and monitored — not in some conspiracy baked into the product itself. _________________________________________ If you're trying to figure out whether an IUL policy fits your situation — or whether the one you already own was built the right way — we'd genuinely like to help. Send us a message with your questions, or book a call and let's talk it through.

Caleb Guilliams sits down with Revan Vega ( @LIFE180 ) Tyler Wille, and Jonathan Bell to settle the question around the policy that sparked a heated debate across the life insurance industry. Together, they examine the original illustration, challenge each other, discuss IUL performance, policy design, regulations, and whether this policy truly lived up to the promises often made about Index Universal Life insurance. Watch the Interview on Youtube for Visuals - https://youtu.be/SMfIaa_PjNIWant to See If Whole Life Insurance Can Improve Your Financial Plan? Schedule Your Clarity Call Here: https://bttr.ly/bw-yt-aa-clarity Want Us To Review Your Permanent Life Insurance Policy? Click Here: https://bttr.ly/yt-policy-review Want Free Whole Life Insurance Resources & Education? Go Here: https://bttr.ly/yt-bw-vault Learn More About BetterWealth: https://betterwealth.com Chapters: DISCLAIMER: https://bttr.ly/aapolicy *This video is for entertainment purposes only and is not financial or legal advice. Financial Advice Disclaimer: All content on this channel is for education, discussion, and illustrative purposes only and should not be construed as professional financial advice or recommendation. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of the information on this channel. Neither host nor guests can be held responsible for any direct or incidental loss incurred by applying any of the information offered.

David McKnight addresses one of the biggest fears people have as they approach retirement: "What if I retire right into a market crash?". Not only this represents one of the biggest challenges in retirement planning but it's also one of the reasons why David advocates for protecting yourself from sequence of returns risk.  When it comes to long-term stock market investing, it's important to understand the difference between retirement years and accumulation years. Sequence of returns is the order in which market returns occur in your portfolio.  That order, David stresses, can make or break your retirement unless you've taken steps to prepare your portfolio ahead of time. The danger isn't simply that the market goes down, as markets always recover eventually. The danger is being forced to sell investments while they're down in order to fund your lifestyle.  David touches upon the dot-com collapse and 2008 mortgage meltdown as extraordinarily difficult periods for retirees who only relied on investment portfolios for income. There are two approaches David recommends adopting.  The first one is to build a guaranteed income floor before retirement – ideally 5-10 years before retiring. The role of the guaranteed lifetime income is for it to cover essential expenses so that your lifestyle is no longer entirely dependent on the performance of your stock portfolio. Remember: by living off your guaranteed streams of income you give your portfolio a chance to recover from down years in the stock market. The second approach is the so-called Volatility Shield strategy, which sees a properly funded cash value life insurance – in the form of Indexed Universal Life (IUL) – play a critical role. The first step of the Volatility Shield way is to begin funding an IUL well before retirement with 3-5 years of living expenses covered by day one of retirement. David breaks down the process that can increase the sustainable withdrawal rate on your stock portfolio from 4% to as high as 8% with a 95% success rate. The Volatility Shield is a strategy that you can begin implementing much earlier than the guaranteed lifetime income one. You can use guaranteed lifetime income to help cover essential expenses, and an IUL volatility shield to get tax-free liquidity to cover discretionary needs during periods of market downturn. When people ask David "When is the ideal time to reposition money to avoid retiring into a market crash?", he always suggests not to wait for the crash, or to try to predict one, rather to build protection intentionally. Mentioned in this episode: David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track The Power of Zero: How to Get to the 0% Tax Bracket and Transform Your Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube

An Iowa widow is suing her financial advisor and two life insurance companies after a premium-financed IUL strategy left her family farm buried in $38 million of debt. Mary Jo has been warning about this exact scheme for years — now there's a real lawsuit to prove it. In Episode 363 of Farming Without the Bank, Mary Jo Irmen breaks down the November 2024 lawsuit involving a debt-free Iowa farm family who was sold $23 million in IUL coverage — with $2.5 million in annual premiums financed through bank loans secured by their paid-off farmland. The strategy was sold as a way to protect the farm from estate taxes. Instead, it put the entire farm at risk. In this episode: The full story behind the Iowa widow's lawsuit (agent Davis, Emeritus, and PacLife) How premium financing works — and why it's especially dangerous for farm families How unethical agents exploit estate tax fears to target debt-free farmers The difference between "churning" and "twisting" — and why neither costs agents their license Why the original $5 million policy would have been enough all along Red flags to watch for if someone is pitching this strategy to you or your family The original $5 million policy would have covered everything. Instead, the debt hit $38 million. Don't let this happen to your farm. If you've been presented with a premium-financed IUL strategy — or know someone who has — reach out before signing anything. Mary Jo and John will review it at no charge.

In this episode, we ask: Why do indexed universal life (IUL) policies so often fail? How about a high profile example? What about a straight-forward, guaranteed approach? Why are IUL policies structured to shift massive risk onto you, the policy holder? What is the real culprit here? What gets more expensive as you age? What...

In this episode, Tom Hegna challenges advisors with the questions that matter most right now: Are you using AI, or avoiding it? Tom uses AI every day — building presentations in minutes, sharpening social posts, and coaching himself on strategy. His warning: advisors who say "I'm not AI" will get left behind. Would AI approve your plan? When a client runs your illustration through AI, does it endorse your work? Tom argues the fix is to feed it yourself and ask, "Is this the optimal solution for this client?" Are you still stuck on accumulation? Tom explains why retirement is about income and risk management, not rate of return — and why he had to make income "sexy" through mortality credits and the academic research behind them. Is your client's retirement riding on luck? Sequence-of-returns risk is "nothing more than good luck or bad luck." Tom explains why the solution is guaranteed lifetime income covering basic living expenses. Are you building a protection plan or just an investment plan? Tom breaks down the roles of income annuities, cash value life insurance, hybrid and traditional long-term care, and asset protection. Do you know what the big institutions are actually saying? BlackRock, Ernst & Young, Barclays, Goldman Sachs and the Wall Street Journal — none of them sell annuities, and all point toward guaranteed income. What should you stop doing? Sketchy IUL claims, underfunded UL policies sold on fantasy, and fixed index annuities built on manufactured or back-tested performance. **This is the Optimized Advisor Podcast, where we focus on optimizing the wellbeing and best practices of insurance and financial professionals. Our objective is to help you optimize your life, optimize your profession, and learn from other optimized advisors. If you have questions or would like to be a featured guest, email us at optimizedadvisor@optimizedins.com Optimized Insurance Planning

National Life Group Training: Living Benefits, IUL Options, Easy Underwriting & Foreign National Guidelines Yumi Jacquez, Sam Keenan, and Isaac Wood from National Life Group introduce their team support for the Alliance, highlight NLG's 1848 founding, current #7 U.S. life insurer ranking, and mutual company structure, and outline their living benefits suite. They explain opportunities for non‑U.S. citizens living in the U.S. (8+ months residency with SSN or ITIN, including undocumented tax filers) and foreign national guidelines (living outside the U.S. 4+ months with qualifying U.S. nexus), using case studies. The session reviews term products with no-cost living benefits and convertibility, NLG's IUL lineup (Rapid Protect, FlexLife, Summit Life), a mortgage-protection comparison using a "return of premium" IUL solve, rolling target premium commissions, easy underwriting limits, marketing resources/QR codes, advanced sales support, and new tools like pin-to-sign, client intelligence, and the customer app, ending with a living benefits claim video example.

David McKnight addresses one of the most common questions he gets: "If tax rates are going to be dramatically higher in the future, shouldn't I be putting every dollar into a Roth 401(k)?". Moreover, people often wonder whether they should be converting as much of their IRA to Roth as quickly as possible. David is a firm believer that the current tax rates are as low as we're likely to see in our lifetime. The U.S. has over $39 trillion in debt and it's going to increase by two trillion per year over the next 10 years and over $200 trillion in unfunded obligations for Social Security, Medicare, and Medicaid. Many people make the critical mistake of thinking that every retirement plan contribution should be immediately redirected into Roth accounts. However, David stresses, if you're a high-income earner contributing heavily to a Roth 401(k) today may actually be one of the most expensive tax decisions you can make. David explains why he has long argued that 24% is the sweet spot. The so-called Retirement Income Valley is the window of opportunity that opens up immediately after retirement and before social security required minimum distributions kick in. David touches upon IUL and why he doesn't suggest that it should replace your 401(k) or serve as a stock market alternative… Remember: your 401(k) should remain the primary engine driving your retirement plan.  Once you've maximized that tax deduction, an IUL can serve a very important supporting role, though. An Ernst & Young study examined what happens when retirees allocate a portion of their retirement savings to a maximum-funded index universal life policy. Researchers found that if you could divert 30% of your retirement contributions to an IUL with the goal of saving 3-5 years of living expenses by day one of retirement, it helps shield you from stock market volatility. "The IUL isn't designed to replace the investment portion of your portfolio, it's there to protect it", clarifies David. The best retirement strategy isn't the one that sounds the most compelling, it's the one that maximizes the likelihood that your money lasts as long as you do. Mentioned in this episode: David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Ernst & Young   

Nate explains a critical, often overlooked retirement risk: sequence of returns risk—the danger of encountering poor market performance right when you begin taking withdrawals. Even when two retirees earn the same average annual return, the order in which those returns arrive can significantly change outcomes. Nate discusses how to plan for adverse early-retirement markets and presents indexed universal life insurance (IUL) as a flexible, non-market-loss-exposed income source to help mitigate this risk. Key Discussion Points: Sequence of returns risk: It's not a concern until withdrawals begin, typically in retirement. Losses during downturns are compounded when assets are sold to generate income at depressed prices. Even if markets recover, reduced asset bases mean less participation in the rebound, potentially shortening portfolio longevity. Same average return, different outcomes: Two retirees with identical portfolios and a 7% average annual return over 20 years can have dramatically different results depending on whether negative years occur early vs. late in retirement. Early losses paired with withdrawals can rapidly erode principal, demonstrating that the sequence of returns can matter as much as the returns themselves. Planning with Monte Carlo simulations: Nate emphasizes modeling scenarios where the first years of retirement are poor. Objective: Ensure contingency plans exist for adverse sequences, because "we get one chance to get retirement income right." Diversification beyond traditional assets: Historical non-correlation can break down: in 2022, both stocks and bonds fell, undercutting the classic diversification benefits. Relying solely on investment accounts for income in down markets may be suboptimal; alternative funds can allow portfolios time to recover. Role of Indexed Universal Life (IUL): Properly designed and funded IULs can provide cash values protected from market loss. Interest credits are linked to market indices (e.g., S&P 500) without direct exposure to downside. Offers tax-advantaged access to cash values during retirement. Strategy: Draw income from IUL during market volatility instead of selling investments at depressed prices, reducing sequence risk and preserving portfolio recovery potential. Practical insight: Avoiding withdrawals during one or two severe downturn years over the past 25 years could materially improve a retiree's experience and peace of mind. Portfolio construction idea: Consider replacing some or all of a bond allocation with an IUL to add downside protection and tax advantages. Nate's backtest: A Midland National IUL paired with 60% U.S. stocks vs. a traditional 60/40 (stocks/BND bonds) over 25 years. Result: 60% U.S. stock + 40% IUL outperformed 60% U.S. stock + 40% intermediate bonds (Vanguard Total Bond Market, ticker BND). Additional benefits: IUL provides a death benefit and tax-free cash value growth; bond income can be taxable (outside an IRA) or subject to ordinary income tax upon IRA distribution. Major Takeaways: The timing of returns can be as consequential as the returns themselves once withdrawals start. Traditional stock-bond diversification may not always protect against simultaneous market declines. Building an "off-market" income reserve—such as an IUL—can help retirees pause withdrawals from investment portfolios during downturns, improving longevity and stability of retirement income. Integrating IULs as part of or in place of bonds may enhance total outcomes while adding tax and estate benefits, subject to proper design, funding, and suitability. Disclaimers and Professional Guidance: The podcast is informational and not direct investment advice. Not all investments are suitable for all individuals. Investing involves risk; fees and risks should be carefully considered. Crosby Advisory Group LLC is a registered investment entity; consult directly for personalized advice.

Indexed Universal Life (IUL) insurance is often marketed as a "tax-free retirement income" solution, but how do these policies really work over time? To cut through the noise, financial planner Andy Panko, CFP®, RICP®, EA, decided to run his own real-time experiment. He bought an IUL, fully documented the structure, costs, and performance, and is openly sharing the results year after year. In this episode, Andy joins us to explain what IULs are, why he launched The IUL Experiment, and what every financial planner should know before considering them in retirement planning conversations. We talk about: The structure of IULs and why they're so often misunderstood The gap between marketing promises and actual performance The potential benefits—tax deferral and downside protection—and their trade-offs Why transparency and ongoing tracking matter for evaluating these products How planners can approach IUL conversations with clarity and objectivity Whether you've advised clients on IULs, been pitched on them, or just want to better understand how they fit (or don't fit) into real financial planning, this episode gives you a front-row seat to an experiment playing out in real time. AICPA Resources: Tools: Life insurance policy evaluation Podcast: Life insurance planning strategies for individuals Webcast: Advanced strategies for life insurance policies Checklist: Life insurance policy checkup This episode is brought to you by the AICPA's Personal Financial Planning Section, the premier provider of information, tools, advocacy, and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice. Also, by the CPA/PFS credential program, which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online to join our community, gain access to valuable member-only benefits or learn about our PFP certificate program. Subscribe to the PFP Podcast channel at Libsyn to find all the latest episodes or search "AICPA Personal Financial Planning" on your favorite podcast app.

Someone put an IUL illustration in front of you. Maybe it was pitched as "market upside with no downside." Maybe as a "Roth IRA on steroids." Maybe as a way to "be your own bank." And now you're trying to figure out whether any of that holds up, or whether whole life, term, or a Roth IRA actually makes more sense. There's one question that organizes all of it: who carries the risk? With whole life, the insurance company carries it. With an IUL, the risk shifts to you. Everything else in this comparison follows from that single distinction: cost structure, cash value reliability, policy loans, and retirement income. https://youtu.be/JxJqweiyXwU This article covers IUL vs. whole life, IUL vs. term life, IUL vs. a Roth IRA, and the narrow case where an IUL is actually the right call. The goal isn't to tell you IUL is bad. It's to help you see clearly what you're choosing and what job you're asking it to do. Key TakeawaysWhere Does the Risk Live?What's guaranteed vs. what's projectedIUL vs. Whole Life: The Core ComparisonThe cost-of-insurance problemThe 0% floor misunderstandingCaps, participation rates, and spreadsEndowmentLapse ratesIUL vs. Term Life: Two Very Different JobsIUL vs. Roth IRA: The "Tax-Free Income" Pitch, ExaminedWhy IUL Falls Short for Infinite BankingThe double-dip problemLoans on an unstable baseSimplicity vs. active managementWhen an IUL Actually Makes SenseThe Right Tool for the Job You Actually HaveFrequently Asked QuestionsWhat is the main difference between IUL and whole life insurance?Is IUL better than whole life for Infinite Banking?Is an IUL better than term life insurance?Is an IUL a good alternative to a Roth IRA?Can you lose money in an IUL even with the 0% floor? Key Takeaways Whole life offers three contractual guarantees: guaranteed death benefit, guaranteed cash value, and guaranteed premiums that will never increase. An IUL uses flexible premiums, a variable cost of insurance, and index-linked crediting subject to caps, participation rates, and spreads the insurer can adjust annually. The "zero is your hero" floor only protects against negative index crediting. It doesn't protect against cash value declining due to rising internal costs. IUL is structurally incompatible with Infinite Banking, which requires guarantees. The risk you're trying to move off your shoulders needs to land somewhere solid. IUL can make sense for a narrow, specific purpose, but that purpose is not banking. Where Does the Risk Live? Both products are permanent life insurance. Both build cash value. Both offer tax advantages. That's exactly why people assume they're interchangeable, and exactly why the distinction matters so much. With whole life insurance, the risk of delivering on the policy's promises sits inside the insurance company. You pay your premium. They handle everything else. With an IUL, that risk shifts to you, through index performance, variable costs, and a contract the insurer can adjust every year. Here's a quick test: look at the contract length. A whole life contract is often 50 to 80 percent shorter than a universal life contract. The extra pages are disclosures explaining all the ways the insurer is not responsible, because that responsibility has moved to the index and to you.  On whole life, only you can make changes within the contract's provisions. The insurer can't touch your maximum premium, your guaranteed death benefit, or your guaranteed cash value.  On an IUL, the insurer can change cap rates, participation rates, spreads, and required premiums at each anniversary date. That's not a loophole. It's in the contract. What's guaranteed vs. what's projected Whole LifeIULDeath benefitGuaranteedConditional on continued fundingCash valueGuaranteed minimum dollar amountProjected, not guaranteedPremiumsFixed, will never increaseFlexible; insurer can require moreGrowthGuaranteed rate + non-guaranteed dividendsIndex-linked crediting, subject to caps and adjustable annuallyWho manages itThe insurerYouWho carries the riskThe insurance companyMore risk shifted to the policyholder Nelson Nash, the founder of the Infinite Banking Concept, was direct about this: never use a universal life product to take the banking function into your life. A bank runs on guarantees. The insurance product acting as your bank should too. IUL vs. Whole Life: The Core Comparison Whole life is built on guarantees. An IUL is built on a projection. That's the practical difference between knowing your cash value five years from now and running an illustration that depends on index performance, rising costs, and terms the insurer can revise annually. The cost-of-insurance problem Whole life spreads the mortality cost evenly across the life of the policy. It endows at age 120 or 121, so the math is known, the premium is level, and it's fixed from day one. An IUL uses annual renewable term costs that increase every year. Cheap early, expensive later. As you age, that rising cost eats into cash value faster. If the index underperforms, the insurer can require more premium to keep the policy alive, or it lapses. The 0% floor misunderstanding "Zero is your hero" implies you can't lose money. What it actually means is that index crediting won't go negative. But the policy's internal costs still come out: rising cost of insurance, fees, and charges. In a flat year, your cash value can decline even though the index "didn't lose." A floor on crediting is not a floor on cash value. Caps, participation rates, and spreads When the index performs well, you don't capture all of it. A cap sets a ceiling on credited gains. A participation rate credits only a percentage of the gain. A spread withholds credit on the first portion. Some contracts use one mechanism, some use all three. All of them can change every anniversary date. The upside story in the illustration isn't what you're guaranteed to keep. Endowment Whole life endows at age 120 or 121, meaning cash value and death benefit meet at that point, and a living insured is paid the full value out. The policy has a known end point, so the company can calculate and guarantee your cash value at every step. An IUL doesn't endow. There's no guaranteed future cash value figure at all. That's the number a banking strategy depends on knowing. Lapse rates Research from 2021 by Gottlieb and Smetters, published in the American Economic Review, found that 88% of all universal life policies never pay a death benefit. LIMRA's extrapolated data suggests whole life lapses at roughly 60% (Research published in the American Economic Review). The data involves extrapolation, but the direction is consistent: universal life lapses significantly more often, and rising costs over time are a major reason why. For a real-world example of what can go wrong, see our post on the Kyle Busch IUL lawsuit. IUL vs. Term Life: Two Very Different Jobs Term life is pure death-benefit protection. No cash value, lower cost, and it expires. For many families covering a defined window, a mortgage, kids at home, and years to retirement, that simplicity is a feature. Term does exactly what it says it does. An IUL is permanent insurance with a cash value component. But the cost of insurance inside an IUL behaves like an annual renewable term that increases every year. You're paying rising-cost term coverage embedded inside a more expensive, more complex wrapper. That reframes a common pitch: the IUL sold as "term you can get back." Once you understand the internal cost engine, that framing looks very different. When a term policy lapses, it usually means the coverage window was intentional. That's a plan working as designed. When an IUL lapses, something failed. The thing that promised to be permanent didn't make it, and it usually happens at exactly the wrong time. If the job is affordable protection for a defined period, term does it more honestly and more cheaply. Don't buy an IUL believing it's simply a better version of term. IUL vs. Roth IRA: The "Tax-Free Income" Pitch, Examined IULs are frequently sold as a Roth alternative: "tax-free retirement income with no contribution limits." It's worth looking at that honestly. A Roth IRA offers genuinely tax-free growth and qualified withdrawals. Full market participation, no cost-of-insurance drag, no lapse risk. The tradeoff is annual contribution limits and income phase-outs that exclude higher earners. An IUL offers fewerIRS contribution limits, tax-advantaged access through policy loans, and a death benefit. In exchange, you take on capped and adjustable upside, layered fees, a rising cost of insurance, lapse risk, and ongoing management requirements. The mechanism that matters most: the "tax-free income" from an IUL comes from borrowing against non-guaranteed cash value. If the policy lapses while loans are outstanding, the gain can become taxable at the worst possible moment, in retirement, when income options are most constrained. An IUL might add value for a high earner who wants an additional tax-advantaged bucket and a death benefit, and can fund it aggressively for 15 or more years. Even then, it's a complement, not a replacement. Roth IRAIULContribution limitsYes (IRS limits)NoUpsideFull market participationCapped and annually adjustableFeesLower FeesLayered (COI, admin, charges)AccessQualified withdrawals tax-freePolicy loans against non-guaranteed valueRiskMarket riskMarket-linked + COI + lapse riskComplexityModerateHighDeath benefitNoYes Why IUL Falls Short for Infinite Banking To use a policy for banking, you need to know what your future cash value will be. That's the whole point of the Wealth Creator's Cash Flow System: deploy capital, borrow against a foundation you can plan around, repay, and repeat. That only works if the numbers are certain. Infinite Banking isn't about maximizing return inside

Scott Grode from Transamerica shares key updates and resources for agents, including critical contact numbers, his email/cell, and added support from virtual wholesaler Jason Zachary, who can deliver team trainings on planning, product focus, recruiting, and new agent onboarding. He announces FE Express enhancements launching July 23: a new preferred risk class (Premier) alongside Select, plus juvenile availability down to 15 days old. He clarifies FE Express funeral planning concierge is switching from Everest to Empathy effective July 1, while prior policies keep Everest. Term and IUL non-med limits were improved: ages 18–55 up to $2M and ages 56–65 up to $1M with no exam. He reviews FE Express instant-decision flow, true Social Security billing, commission rules, underwriting strengths, face amount limits, draft-date limitations, policy promise, portal access, quoting, and tracking policies in Life Access.

Life Insurance agent, Jonathan Bell claims he has beaten @LIFE180 $25K IUL challenge but his policy was rejected by Chris Kirkpatrick (Now Revan Vega) for not meeting the fine print. In this interview, Jonathan gives his side of the story in why he believes a properly structured IUL policy can outperform it's projected illustration.DISCLAIMER: Indexed universal life insurance is a complex product with costs, fees, and risks. Policy performance is based on non-guaranteed crediting rates and assumptions; actual results may be lower than illustrated. Any examples discussed are hypothetical and for illustrative purposes only and are not guarantees of future performance. Loans and withdrawals will reduce the policy's cash value and death benefit and may increase the risk of policy lapse.Watch the Interview on Youtube for Visuals - https://youtu.be/oFOe5hgI-2oWant to See If Whole Life Insurance Can Improve Your Financial Plan? Schedule Your Clarity Call Here: https://bttr.ly/bw-yt-aa-clarityWant Us To Review Your Permanent Life Insurance Policy? Click Here: https://bttr.ly/yt-policy-reviewWant Free Whole Life Insurance Resources & Education? Go Here: https://bttr.ly/yt-bw-vaultLearn More About BetterWealth: https://betterwealth.comDISCLAIMER: https://bttr.ly/aapolicy*This video is for entertainment purposes only and is not financial or legal advice. Financial Advice Disclaimer: All content on this channel is for education, discussion, and illustrative purposes only and should not be construed as professional financial advice or recommendation. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of the information on this channel. Neither host nor guests can be held responsible for any direct or incidental loss incurred by applying any of the information offered.

In this episode we go over some of the problems with Infinite Banking. Some of these problems are with the Infinite Banking Concept directly. Some are false teachings/marketing about the infinite banking concept. Other problems we address in this episode are personal problems that must be taken care in order to have success with practicing the Infinite Banking Concept. Watch Steven's video on IUL here: https://www.youtube.com/watch?v=cDrQ7OIYKQE&t=1019s

Achieving financial peace of mind is less about your salary and more about your mental approach. Wes Howard switched His financial mindset and started thinking like a banker by practicing The Infinite Banking Concept.Join our FREE Skool -- https://www.skool.com/ibc-community-7282Visit our Website -- https://thewealthwarehousepodcast.com/Chapters00:00 Introduction and Wes Howard's background01:13 Realization of the flaws in IUL and switch to whole life02:05 Early years of implementing IBC and lessons learned12:30 Handling objections and community support20:48 The importance of mindset and continuous education28:37 Legacy, family, and future plansAt Wealth Warehouse, we challenge you to transform your financial future through the principles of the most profitable business in the world: banking.We believe everybody should be involved in two businesses: the business that you're in, and the banking business. Everyday people can replicate what bankers have been doing for centuries to leverage capital and build wealth through private lending. Join us as we uncover the truths about money, expose lies and myths, and flip conventional financial advice on its head.

Infinite Banking has grown fast. Really fast. And with that growth has come a flood of practitioners, coaches, agents, and advisors all claiming they can help families become their own banker.  Some of them are exceptional, some are undertrained, and some are simply using the Infinite Banking label to sell products they were already selling, with a new coat of paint. From the outside, it's genuinely difficult to tell the difference. Their Marketing is polished, and their credentials sound similar.  And yet the person you choose to guide you through this process will shape a financial strategy that isn't meant to last a few years. It's meant to last generations. A policy designed today may still be growing in your children's lifetime. That deserves care. https://youtu.be/0jcJDFXixhY What follows is a set of questions every Infinite Banking practitioner should be able to answer before you trust them to design your system.  These aren't adversarial questions. A well-trained, experienced practitioner should answer every one of them with enthusiasm, because they demonstrate exactly the kind of long-range, client-centered thinking that separates someone guiding a philosophy from someone selling a product. Table of ContentsKey TakeawaysAre You Practicing Infinite Banking Yourself?Are You an Authorized Nelson Nash Institute Practitioner?Are They Asking the Right Questions About You?Can They Explain the Policy Design and Why?Mutual participating companyDirect vs. non-direct recognitionBase premium vs. PUA ratioThe first five years, honestlyWhich Companies Do They Work With and Why?Can They See Your Whole Financial Life?What Happens After the Policy Is Issued?The Questions to Bring to Your First ConversationThe Right Practitioner Will Welcome Every One of TheseBook a Strategy CallFrequently Asked QuestionsWhat is an authorized Infinite Banking practitioner?How do I know if an Infinite Banking advisor is qualified?What questions should I ask before buying a whole life insurance policy for IBC?Why does it matter if my advisor practices Infinite Banking themselves?What should I expect from an Infinite Banking advisor after my policy is issued?Is Infinite Banking the same regardless of which advisor I use? Key Takeaways Whether a practitioner is actively practicing Infinite Banking themselves is the single most revealing question you can ask. Authorized Nelson Nash Institute practitioners have completed formal training in the philosophy as originally taught; using the IBC label without authorization is worth questioning. Behavior matters more than policy design. A good practitioner asks as many questions about your financial life as you ask them. Policy design fluency, company selection knowledge, and honest discussion of the first five years are all marks of a practitioner who knows what they're doing. Infinite Banking is one piece of a full financial picture. A practitioner who only sees the insurance piece is missing the rest. The relationship doesn't end when the policy is issued. It's just beginning. Are You Practicing Infinite Banking Yourself? This is the most important question on the list. Not "do you have a whole life policy." Most insurance agents do. The question is whether they actively practice Infinite Banking in their own financial lives. There's a meaningful difference between the two. An agent who holds a whole life policy primarily for death benefit coverage is still thinking in product terms.  A practitioner who is intentionally capitalizing policies, taking policy loans to fund investments or opportunities, repaying those loans, and systematically growing a network of policies over time is living the philosophy. You can follow what someone's life demonstrates. Believing what they say is a different thing entirely. Bruce has been capitalizing since his father opened a policy on him as an infant. That's not a credential. It's evidence of a practitioner who thinks about capital the way the Infinite Banking Concept requires.  When I talk about our family banking system, I'm not speaking in theory. I'm reporting what's actually happening in our financial life. A practitioner who truly owns this will go further than confirming they have a policy. They'll be able to tell you which policy loan they most recently funded, how many policies they are running, and how they think about repayment.  The follow-up question to ask: How are you using your cash value right now? What did you most recently capitalize? If those questions produce vague answers, that tells you something. Are You an Authorized Nelson Nash Institute Practitioner? Nelson Nash developed the Infinite Banking Concept and wrote Becoming Your Own Banker. The Nelson Nash Institute trains and authorizes practitioners in the philosophy as he originally taught it.  Authorization means completing the Institute's training program. It's not a license in the regulatory sense, but it sets a minimum floor of both knowledge and philosophical alignment. The IBC term carries a copyright. And yet many agents use "Infinite Banking Concept" or "IBC" in their marketing without the Institute's authorization. That raises a fair question: why wouldn't they simply get authorized? Nelson said that the only limit to Infinite Banking is imagination, but he also gave guidelines.  The flexibility he intended has led some practitioners to strip away those guidelines entirely and declare that any whole life policy you can borrow against constitutes IBC.  Bruce calls this oversimplification. It produces policies that look like Infinite Banking on the surface but don't function like it in practice. The design is there; the philosophy isn't. Authorization is a meaningful bar. It's not the only bar, and there are levels of competency even among authorized practitioners. But a practitioner who markets themselves using intellectual property they've chosen not to be authorized in is worth questioning before you go further. Are They Asking the Right Questions About You? Nelson Nash said it himself: behavior is more important than policy design. A practitioner who truly understands this will spend as much time asking about your financial life as you spend asking about theirs. If the first question you're asked is "how much do you want to put in each year," and then they produce an illustration based on that number, that's not due diligence. That's taking an order. Think about what you'd expect from a commercial bank. If you walked in asking for a $50,000 loan and the banker just transferred the money without asking about your income, your assets, or your ability to repay, you'd be alarmed.  And yet that's what some practitioners do for people who are trying to become their own banker. The institution they're helping you replace operates with far more rigor than they're applying to the process. Or consider what you'd expect from a physician. A doctor who hands you a prescription the moment you name a medication, without examining you or understanding your history, isn't practicing medicine. They're taking orders. A practitioner who quotes you an illustration before understanding your full financial picture is doing the same thing. A practitioner asking the right questions will want to understand your income and how it flows, where your money currently sits, your existing insurance and protection picture, any anticipated income changes or windfalls, your tax situation, and your estate and legacy goals.  And that's not a one-time conversation. A good practitioner commits to reviewing all of it at a minimum once a year, because life changes, and the policy needs to change with it. Can They Explain the Policy Design and Why? This section covers the technical fluency a practitioner should demonstrate. You don't need to become a policy design expert. But you should know what depth of answer to expect. Mutual participating company This is the non-negotiable starting point. Universal life policies, including indexed universal life, carry no guarantees. Whole life from a mutual, participating company is the foundation.  Participating means you share in the profits through a dividend. A practitioner who is unclear on why that matters, or who offers IUL as an alternative vehicle for Infinite Banking, is not operating from Nelson's philosophy. Direct vs. non-direct recognition Non-direct recognition companies credit the same dividend regardless of outstanding loans. Direct recognition companies reduce the dividend on the loaned portion.  For active Infinite Banking practitioners who borrow regularly, this distinction is important, especially when a loan carries over from one year to the next and compounds against a smaller dividend.  Non-direct recognition is our preference, and it's one of the clearer signs that a practitioner is thinking about how the policy will actually function in use. Base premium vs. PUA ratio Paid-up additions, or PUAs, allow you to pour additional capital into the policy and build cash value faster in the early years. A lower base with heavy PUAs can look attractive on a short illustration. But a higher base creates a larger permanent death benefit and a higher dividend over decades.  You can read more about how whole life dividends work and what affects them. That dividend compounds into more cash value over a lifetime. The deeper principle: a practitioner who designs defensively, minimizing the base "in case you can't pay," is building behavioral uncertainty into the structure from day one.  A practitioner who helps you think about how much you can capitalize, rather than the least you need to commit, is operating from the philosophy. Over 40 years of consistent funding, the lower base policy can outperform. But the moment funding falters, and it will because life is not a spreadsheet,...

Paul opens the show by talking about his experience in insurance sales at the beginning of his career. In these companies, advisors are taught to “smile and dial” and move products that make them and the company the most money. Listen along as Paul shares a video in which an insurance salesperson talks about LIRP and IUL plans and how he tries to sell them. Paul and Evan push back and teach you why these products are not recommended as accumulation vehicles and how to avoid getting sold one.    Want to cut through the myths about retirement income and learn evidence-based strategies backed by over a century of data? Download our free Retirement Income Guide now at paulwinkler.com/relax and take the stress out of planning your retirement.   This material is for general educational purposes only and is not personalized investment, financial, tax, or legal advice. Past performance does not guarantee future results. Nothing here is an offer, solicitation, or recommendation for any security or strategy. All financial decisions involve risk, and you should consult qualified professionals before acting on this information. Advisory services offered through Paul Winkler, Inc., an SEC-registered investment adviser. 

Is Infinite Banking too good to be true? We're answering the hardest IBC questions every entrepreneur asks. In this episode of Without the Bank, Tarisa takes over the mic to tackle the most common (and controversial) questions about the Infinite Banking Concept. From "What's the rate of return?" to "Why is whole life so expensive?" and "Is my money actually safe?" — she breaks down what every business owner needs to know before starting IBC. If you've ever wondered whether whole life insurance is worth it, how quickly you can access your cash value, or how IBC compares to keeping money in a bank, this episode has your answers. ⏱️ Chapters: 0:00 — Intro & A Word from 80-Year-Old Tarisa 1:12 — What's the Rate of Return? It's a Formula, Not a Number 3:13 — Death Benefit vs. Cash Value Explained 4:08 — Why Is Whole Life So "Expensive"? (Term vs. Whole Life vs. IUL) 7:49 — How Long Do I Have to Pay Premiums? 8:45 — How Soon Can I Access My Cash Value? 9:43 — Is My Money Safe? Banks vs. Life Insurance Companies 13:51 — Mary Jo's Historic Milestone & Final Thoughts

In this episode, David McKnight addresses one of the biggest myths in retirement planning: once you retire, you need to dramatically reduce your exposure to stocks. The reason why most financial advisors recommend reducing stock exposure in retirement has very little to do with stocks and everything to do with sequence of returns risk. Sequence of returns risk is what happens when you're forced to withdraw money from your investment portfolio during a market downturn. If the market falls 30% and you're simultaneously taking withdrawals to pay for your living expenses, you're locking in losses and permanently impairing your portfolio's ability to recover. According to David, the way to solve this problem is by ensuring that your essential expenses are covered before you ever retire. When you're at least five years out from retirement, David believes that one of the most important decisions you can make is to create the so-called income floor. An income floor is a guaranteed stream of income that covers your basic living expenses regardless of what the stock market is doing. The volatility shield adds a second layer of protection that has to do with discretionary expenses (e.g., a trip around the world, taking the grandchildren to Disney World, etc.). Suze Orman has controversially recommended that retirees keep 3-5 years' worth of living expenses in a savings account, so they don't have to sell investments during a market downturn. While David agrees with the concept, he doesn't see savings accounts as the most efficient place to put that money in. Instead, he'd rather have retirees accumulate that money in a completely separate account (a volatility shield) – which, unlike a savings account, has the potential to grow 5-7% net fees over time. Looking for an alternative volatility shield? Look at cash value life insurance in the form of indexed universal life (IUL), says David. An Ernst & Young study found that retirees who included the volatility shield strategy and a guaranteed lifetime income annuity in the retirement plan were able to dramatically increase the sustainable withdrawal rate on their investment portfolio. Since the early 1990s, the gold standard on sustainable withdrawal rates has been 4%. The 4% Rule says that if you withdraw approximately 4% of your portfolio each year, there's a reasonably high chance that your money will last a full 30-year retirement. However, when retirees had access to a volatility buffer and could avoid taking distributions following market downturns, sustainable withdrawal rates increased dramatically (in some scenarios, up to 8%). David is a believer of the fact that the portfolio that got you into retirement can also take you through retirement – with a recommended 70% in U.S. stock market index funds and 30% in international stock market index funds. For David, the reason why this approach works well is that, with it, you solve the two biggest issues in retirement: income and volatility. Moreover, if you can position these assets inside tax-free accounts through strategic Roth contributions and Roth conversions, you gain protection against yet another threat, tax rate risk. David concludes by stressing that it is not that the buy-and-hold strategy doesn't work, it's that most retirees don't have the protection tools necessary to stay committed to the strategy when markets become turbulent.     Mentioned in this episode: David's new book: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Suze Orman Ernst & Young

Join our free Skool - https://www.skool.com/ibc-community-7282 A Lineman's Infinite Banking Concept journey to wealth creation. Wes's journey started out with anything BUT financial peace of mind, as his search for creating financial legacy for his family brought him to products and businesses that just didn't deliver what they said they would. Until he found The Infinite Banking Concept (IBC) and truly started the path of family banking. Listen in to learn where He came from and where He's going. Visit - https://thewealthwarehousepodcast.com/ Chapters 00:00 Introduction and Wes Howard's background 01:13 The turning point: discovering Nelson Nash's IBC 09:30 Wes's experience with IUL and misconceptions 16:50 Realization of the flaws in IUL and switch to whole life 21:02 Early years of implementing IBC and lessons learned 29:21 Handling objections and community support At Wealth Warehouse, we challenge you to transform your financial future through the principles of the most profitable business in the world: banking. We believe everybody should be involved in two businesses: the business that you're in, and the banking business. Everyday people can replicate what bankers have been doing for centuries to leverage capital and build wealth through private lending. Join us as we uncover the truths about money, expose lies and myths, and flip conventional financial advice on its head.

Life insurance is one of the most important financial tools available... and one of the most misunderstood. In this episode of the Working Wealth Podcast, Patrick Rogers and Trevor Rasmussen break down the major types of life insurance, including term life, whole life, universal life, indexed universal life (IUL), and variable life insurance. They discuss what life insurance is actually designed to do, why so many families are underinsured, and how different policy structures work in the real world. The conversation also explores the strengths and weaknesses of cash value policies, how life insurance pricing works, what makes someone uninsurable, and why many financial professionals recommend starting with term coverage before considering more complex strategies.

David McKnight kicks this episode off by explaining how, for decades, conventional financial wisdom has been saying that, as you approach retirement, you should begin dialing down your stock exposure and increasing your bond allocation. A 60-year-old, for example, would have 40% of their portfolio in stocks and 60% in bonds.  Historically, bonds served three primary functions: They provided income, they reduced portfolio volatility, and they protected retirees from so-called sequence of returns risk. David touches upon how the sequence of returns risk works. Retirees who get hit early often run out of money earlier – in some cases, even 15 years prior to life expectancy. The old approach to retirement planning assumes that bonds could provide meaningful returns while still acting as a stabilizer. However, recent years have shown that bonds are not risk-free. Back in 2022, for instance, the Bloomberg U.S. Aggregate Bond Index lost 13%. Long-term treasuries did even worse, as many lost between 25 to 30% due to rapidly rising interest rates. David stresses that an annuity can do something bonds cannot do: It can guarantee income that you cannot outlive. It's important to realize that whenever your basic living expenses are covered, something profound happens psychologically: You stop depending on your investment portfolio to solve every problem. Furthermore, you feel as if you now have permission to spend. Studies show that those who have guaranteed lifetime income spend 22% more than those who rely strictly on a stock bond portfolio. A properly funded IUL can create a pool of tax-free money that's insulated from stock market loss and available during downturns. David unpacks a strategy that can increase the sustainable withdrawal rate on your stock portfolio from 4% to as high as 8% with a 95% success rate. When you combine guaranteed lifetime income from annuities with a volatility shield in the form of IUL, you are no longer reliant on bonds, says David. He also touches upon why retirees who adopt the no-bond power of zero approach begin to take a lot more risk in their stock market allocations. David wraps things up by sharing insights on what retirees should think about and do to increase the likelihood that, in retirement, their money will last as long as they do.     Mentioned in this episode: David's new book: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Bloomberg U.S. Aggregate Bond Index

Learn how you can turn your life insurance policy into a super Roth for retirement. Tom Love is a CEO and financial wealth expert with over 40 years of experience. He walks through the multiplicity of benefits life insurance can unlock not just for the top 1% but for business owners, entrepreneurs, W2, and retirees. We cover the tax advantages, risk mitigation, non-recourse loan benefits, as well as debunking some of the most common talking points against life insurance.Watch the Interview on Youtube for Visuals - https://youtu.be/NABjYZ3BggoConnect with Tom Love: https://www.linkedin.com/in/tom-love/The Breakaway League: https://www.linkedin.com/company/thebreakawayleague/Want to See If Whole Life Insurance Can Improve Your Financial Plan? Schedule Your Clarity Call Here: https://bttr.ly/bw-yt-aa-clarityWant Us To Review Your Permanent Life Insurance Policy? Click Here: https://bttr.ly/yt-policy-reviewWant Free Whole Life Insurance Resources & Education? Go Here: https://bttr.ly/yt-bw-vaultLearn More About BetterWealth: https://betterwealth.comChapters:00:00 - Interview Teaser and Introduction to "Super Roths" and Life Insurance 01:54 - Communicating the "Why" and Selective Clientele 02:35 - Wealth Strategies Within the Tax Code 04:18 - Tax-Free Income vs. Tax-Exempt Cash Flow 06:05 - Hidden Debt of Retirement Accounts 09:55 - Mechanics of Non-Recourse Loans 11:40 - The 1990 GAO Report and Tax Exemption 15:52 - Breakaway League and Better Communication 21:11 - Problem with Collateralizing Retirement Plans 25:23 - Case Study: A Billionaire's Insurance Strategy 28:55 - Real-World IRS Audit Story 30:53 - Permanence of the Tax Code and Section 7702 33:13 - The Mount Everest Analogy for Financial Planning 38:43 - Practicality: Taking Loans in Real Life 41:40 - Whole Life vs. IUL and Mutual Companies 44:46 - Warren Buffett and the Life Settlement Market 47:35 - The Conflict of the Fiduciary Registration 50:39 - Debating PUA Riders and Policy Design 54:44 - The Cons and Risks of Life Insurance 57:22 - Collateral Capacity in Real EstateDISCLAIMER: https://bttr.ly/aapolicy*This video is for entertainment purposes only and is not financial or legal advice. Financial Advice Disclaimer: All content on this channel is for education, discussion, and illustrative purposes only and should not be construed as professional financial advice or recommendation. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of the information on this channel. Neither host nor guests can be held responsible for any direct or incidental loss incurred by applying any of the information offered.

IUL gets pitched to young professionals, families, business owners, retirees, and pretty much everyone in between. The message is always consistent: this product can solve your financial problems, provide market upside with downside protection, and generate tax-free retirement income. One product, all things to all people. For most people, IUL is the wrong tool entirely. Not because it's fraudulent. Not because it can't work for anyone. But because there's a fundamental mismatch between how it's sold and who it actually serves. And that mismatch shows up in the data.  https://youtu.be/fZS1uPmsCS0 According to a 2021 study by Gottlieb and Smetters, published in the American Economic Review (1) and drawing on SOA and LIMRA persistency data, nearly 88% of universal life policies never pay a death benefit. That figure covers all universal life products, including IUL.  And IUL was built specifically to fix the lapse problems of earlier UL products. It hasn't. The chassis is the problem. This article is a profile-by-profile look at the people who should not buy an IUL, the data that supports why, and a fair look at the narrow group for whom it might make sense. We're not taking sides. We're giving you the information you need to make a decision that actually fits your life. Key Takeaways:What IUL Actually Is, and Why the Chassis MattersThe One-Year Renewable Term ProblemWho Should Not Buy an IUL PolicyAnyone who hasn't mastered the financial basicsAnyone who needs guarantees and predictabilityAnyone practicing or planning Infinite BankingAnyone without a high, stable, long-term incomeAnyone who cannot handle the lapse riskAnyone who misunderstands what market risk means in an IULAnyone building a multi-generational legacyThe Data Nobody Shows You Before You SignThe Headline NumbersA Pattern That Keeps RepeatingTo Be Fair: Who IUL Actually ServesThe Right Buyer ProfileThe Alternative Built for the Rest of UsWhy Endowment MattersThe Reduced Paid-Up Safety NetBehavioral FitThe Decision Is Yours: Make It With the Full PictureBook a Strategy CallFrequently Asked QuestionsWho should not buy an IUL policy?Is IUL worth it for most people?What is the lapse rate for IUL policies?Who is IUL actually designed for?What is the difference between IUL and whole life for banking purposes?Can I use IUL for Infinite Banking? Key Takeaways: IUL is built on a one-year renewable term chassis, meaning internal insurance costs rise every single year as the policyholder ages Nearly 88% of universal life policies (including IUL) never pay a death benefit, with 57% of permanent policies (particularly universal life) lapsing in the first 10 years IUL cannot endow and cannot be converted to reduced paid-up status, meaning premiums are required indefinitely The product demands a level of behavioral consistency over 30 to 40 years that most people, including the most disciplined, cannot sustain IUL is not compatible with Infinite Banking because it lacks the guaranteed, predictable cash value growth the strategy requires The narrow group IUL actually serves is sophisticated, high-net-worth individuals using it specifically for estate planning leverage What IUL Actually Is, and Why the Chassis Matters Indexed universal life insurance is a form of permanent life insurance where cash value growth is linked to a market index, typically the S&P 500.  The policyholder isn't actually invested in the market. The insurance company credits growth based on index performance, subject to a cap (the maximum you can earn) and a floor (usually 0%). You participate in some of the upside. You're protected from direct index losses. That's the pitch. The One-Year Renewable Term Problem The structural reality is different from the marketing version. Unlike whole life insurance, which spreads insurance costs evenly across a lifetime so the premium never changes, IUL is built on a one-year renewable term chassis. That means the cost of insurance increases every single year as the insured ages. In the early years, you barely notice. Over decades, and especially in retirement, it becomes a serious structural pressure on the policy's cash value. The flexible premium feature, often marketed as a benefit, is part of the same structural reality. Flexibility sounds good. But it means the policy requires ongoing management and can deteriorate if premiums are reduced or skipped.  The policy doesn't just sit there working for you. It demands attention, funding, and active monitoring year after year. For a deeper look at the structural risks, internal charges, and illustration problems with IUL, see our posts on the dangerous truths about IUL risks and Todd Langford's analysis of IUL math. Who Should Not Buy an IUL Policy This is the core question. Not "is IUL good or bad?" but "is the person buying it actually a match for what the product demands?" Seven profiles. If you recognize yourself in any of them, that's information worth taking seriously. Anyone who hasn't mastered the financial basics IUL is an advanced financial product. It should not be anyone's first or second financial move. Before using a structure that combines insurance, investing, and tax planning, a person needs the basics in place: spending less than they earn, building consistent positive cash flow, and saving habitually. Parkinson's Law, the tendency for expenses to rise to meet income at every level, is real. IUL does not fix a cash flow problem. It adds complexity on top of one. If you haven't overcome the basic discipline of keeping your income above your expenses and putting the gap into savings, a complex product isn't a solution. It's a distraction from the actual problem. Anyone who needs guarantees and predictability If you need to know with certainty what your policy will be worth in 10, 20, or 30 years, IUL cannot give you that. There is no guaranteed cash value dollar amount in an IUL. The crediting depends on index performance, caps that can change annually, and internal costs that increase over time. If your financial planning requires a predictable future asset base for retirement, a major capital need, or a legacy strategy, a product built on variables is the wrong foundation. The middle class, upper middle class, and anyone with fluctuating income fall into this category. And that's most people. Anyone practicing or planning Infinite Banking IUL is actively marketed as a vehicle for Infinite Banking. It is not.  Infinite Banking requires a pool of capital that is predictable, guaranteed, and always growing. The arbitrage that makes policy loans powerful, earning in two places at once, only works when the policy's growth is reliable. In a year where the index earns zero, a policy loan doesn't just cost the loan interest. It costs the loan interest with no offsetting policy growth.  The banking system breaks down exactly when it should be working hardest. For a full breakdown, see our post on why IUL is incompatible with Infinite Banking. Anyone without a high, stable, long-term income IUL requires consistent, maximum funding over a very long time horizon to have any chance of performing as illustrated. Life disruptions like job changes, business downturns, family expenses, and medical costs interrupt premium payments. And because the policy relies on the index to help fund its own rising costs, any gap in funding creates a cascade effect that's very difficult to reverse. Even Nelson Nash, the creator of Infinite Banking, once missed funding PUAs on one of his own policies, causing the rider to close. If the creator of the strategy had trouble keeping up with premiums, the expectation that ordinary policyholders will fund an IUL perfectly for 30 to 40 years is unrealistic. Anyone who cannot handle the lapse risk Nearly 88% of universal life policies never pay a death benefit, and IUL is part of that picture. That number should stop anyone from considering this product and make them ask: why?  The answer is structural. Rising internal costs, non-guaranteed crediting, and the behavioral reality of managing a complex financial product over decades. And lapsing isn't just losing the policy. When a policy lapses with outstanding loans and cash value above the cost basis (the total premiums paid), the gain is treated as taxable ordinary income in the year of lapse. That tax bill arrives at the worst possible time, often in retirement, when income is fixed and absorbing it is most painful. Anyone who misunderstands what market risk means in an IUL Many buyers hear "zero is your floor" and believe their money is protected from losses. This is technically true and practically misleading. The 0% floor only protects against index-linked losses. It does not protect against the internal drag of rising mortality costs, administrative fees, and hedging strategy expenses, all of which continue to come out of the cash value regardless of what the index does. A zero-credit year is effectively a negative year once internal charges are factored in. And when markets perform poorly over multiple years, the insurance company's cost of maintaining those hedges rises. They respond by lowering caps. Lower caps mean less upside potential. This cycle of poor performance, higher hedge costs, and lower caps compounds over time. Anyone building a multi-generational legacy Legacy planning requires certainty across decades and generations. A policy that cannot endow, cannot be converted to reduced paid-up status, and requires active management indefinitely is not a reliable foundation for generational wealth transfer. Whole life policies endow at age 120 or 121. The cash value and death benefit converge, and the policy is contractually complete. IUL policies do not endow. Premiums are required for as long as the insured lives. There is no actuarial endpoint.  ...

The bond market worldwide is in crisis.   The US 30 Year Bond recently rose to 5.2%, the highest since 2007. The UK 30 Year Bond is the highest since 1998. The Japanese 30 Year Bond is the highest level ever recorded.   The primary reason is debt in the western world is at the highest levels ever recorded. Due to the government spending, inflation is increasing in 27 of the 29 largest economies in the world.   Central Banks can impact short-term interest rates but have little affect on long-term interest rates. Expect higher interest rates until the western world gets debt under control.   Stocks and real estate tend to struggle with higher interest rates. Savings, CD's, dividend paying insurance policies, index annuities, and index universal life tend to thrive with higher interest rates.   Insurance companies heavily invest in bonds. When bonds pay higher interest rates, they are more profitable. Annuities and cash value insurance become more profitable.   This is the "Golden Era of Fixed Assets". Index annuities and IUL's are paying historic returns. This is likely to continue and even increase for the foreseeable future.   The best index annuity I have seen in my 27 year career was released recently by one of the largest, A+ rated companies. This annuity product has no fee options, no cap (unlimited upside), and industry leading participation rates. There is no downside market risk. Principle is guaranteed. Once gains are locked in, the gains become the new principle.   Historical average annual returns have been 10-14% for the past 10-20 years!   Contact Ferenc at ferenc@yourpersonalbank.com or 866-268-4422 for more info.

David McKnight addresses one of the biggest threats to your retirement plan: sequence of returns risk. Are you retired or within 10 years of retirement? Sequence of returns risk may be the single most important concept you need to understand if you want to ensure your money lasts as long as you do. Sequence of returns risk refers to the danger of experiencing a market downturn early in retirement while you're simultaneously taking withdrawals from your portfolio. David explains why this risk is most dangerous during your first 10 years of retirement. Early in retirement, your money still needs to last 20 to 30 years – an early blow to your portfolio can significantly impact its ability to do so. To defend yourself in the most dangerous decade of retirement, you need an account that allows you to avoid touching your stock portfolio until the market has recovered. The reason for that is that, historically, most market downturns take 3-5 years to recover back to their previous peak. David discusses the 4% Rule and the "catch" that comes along with it. Some experts, like Suze Orman, recommend having 3-5 years' worth of expenses accumulated in an emergency fund. David goes over why it may not be a good idea.  David brings Indexed Universal Life insurance (IUL) and the concept of volatility buffer into the conversation. Remember: if you're within 10 years of retirement, now is the time to start thinking seriously about how you'll create a volatility buffer.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Suze Orman

The conversation delves into the importance of life insurance education and the impact of avoidance and misconceptions about life insurance costs. It also explores the lack of insurance education in schools and the wealth gap's influence on insurance understanding in black and brown communities. Additionally, it addresses the role of agents in insurance mistrust and the impact of captive agents on policy options. The discussion also covers the basics of health insurance, including ACA marketplace coverage and private health insurance, with considerations for self-employed individuals. Furthermore, it provides insights into term insurance and mortgage protection as part of life insurance basics. The conversation covers the topics of mortgage protection, term life insurance, living benefits, return of premium, and indexed universal life insurance (IUL). It delves into the importance of mortgage protection and term life insurance, the process of shopping for mortgage protection, and the detailed understanding of indexed universal life insurance (IUL) and its benefits. The conversation covers a range of topics related to insurance, including the analogy of Ramen noodles, the impact of pre-existing conditions, the importance of understanding debt and expenses, generational wealth and insurance, affordability, and the importance of starting early. The key takeaways emphasize the role of insurance in protecting both the living and the deceased, as well as the importance of education and understanding before making insurance decisions.TakeawaysInsurance educationImportance of life insurance Term life insurance for mortgage protectionLiving benefits of life insuranceReturn of premium optionIndexed Universal Life Insurance (IUL) Insurance is not just for when you die, it's also for protecting what you're building while you're alive and the people you love.Education and understanding are crucial before making decisions about insurance.Chapters00:00 The Cost of Life Insurance08:35 Insurance Company Mistrust20:40 Life Insurance Basics34:09 Shopping for Mortgage Protection42:38 The Ramen Noodles Analogy48:09 Generational Wealth and Insurance59:25 Affordability and the Importance of Starting Early

Indexed universal life insurance, commonly called by it's acronym IUL, is one of the most complex types of life insurance, and its complexity often makes it difficult to understand. In this episode we break Indexed Universal Life Insurance down into simple plain english, making it easy to understand. You'll learn the history of IUL, what it its, how it works and if its right for you.  Download Binder on Understanding IUL Here: https://pages.mcfieinsurance.com/iul-made-simple/   Follow the Wealth Talks Podcast on: Instagram: https://www.instagram.com/wealthtalkspodcast/?utm_source=ig_web_button_share_sheet&igshid=OGQ5ZDc2ODk2ZA== Facebook: https://www.facebook.com/profile.php?id=61554798231074 Listen to the Wealth Talks Podcast on: YouTube: https://www.youtube.com/@wealth-talks-podcast Apple Podcasts: https://podcasts.apple.com/gb/podcast/wealth-talks/id978187163 Spotify: https://open.spotify.com/show/7MOugefeGkTl5jdkhYdjvQ?si=80ce9359d8e54cc8

Description: In this episode, listen to Bill Levinson as he hosts Arnold "Tre" Tarpley, live from the Levinson Headquarters! Trey is the owner and founder of Lead Lab, one of the fastest-growing Life & Annuity lead programs in the industry! Trey and his team have developed unique marketing strategies & AI-powered verification processes to help Agents around the USA increase the quantity and quality of their leads. As a result, this has led to agents seeing their Life & Annuity sales increase by 4-8X on average! The results speak for themselves! *Active Levinson & Associates agents can purchase discounted & exclusive SMS-Verified leads for IUL, Annuity, Final Expense, Mortgage Protection & Aged Leads! Arnold's Biography: Arnold (Tre) is the Founder of Lead Lab, where he and his team help life insurance agencies scale using proven systems and market development strategies. His focus is on building real infrastructure, stronger relationships, and sustainable growth. Arnold has thousands of recurring clients every month. Their results are built on trust, execution, and putting agents first. Trey was born in Pittsburgh and played professional Football in the NFL. He was drafted by the Atlanta Falcons in 2024. Check us out online: Agent Back Office Site: LevinsonAndAssociates.com Facebook: @levinsonandassociates X: @levinsonassoc Instagram: @levinsonandassociates Threads: @levinsonandassociates LinkedIn: @bilevinson  Podcast: levinson.libsyn.com YouTube Library: @thelevinson1

You've probably seen the pitch. Maybe you sat across from an advisor, or watched a video, or had a friend forward you something. The illustration was impressive: tax-free income in retirement, market upside without the downside, a number at the end that made your eyes widen a little. An Indexed Universal Life policy, they said, could be the retirement vehicle you've been missing. https://www.youtube.com/live/c9mJzNr029w?si=u2Tt1t2K2eyqKkRc Parts of it sound great. Who wouldn't want growth linked to the S&P 500 with a floor that stops your cash value from going negative? Who wouldn't want retirement income that doesn't show up on a tax return? But what if the real risk isn't what the illustration shows? What if it's what the illustration doesn't show? That's the question this article is here to answer. Not to label IUL as good or bad. Not to tell you it's a scam. But to walk through what an IUL is actually designed to do, where its structural assumptions start to break down, and why so many people discover the problems far too late, often right as they're approaching retirement. By the end, you'll understand the specific retirement risks that rarely come up in the sales conversation, when IUL might genuinely make sense, and what a stronger alternative looks like as part of a broader retirement plan. Key TakeawaysWhat Is an IUL, and How Does It Actually Work?The Index Crediting StructurePoint-to-Point CreditingThe Flexible PremiumThe Retirement Risk No One Warns You AboutThe Cost That Keeps ClimbingWhy the Illustration Is Not the ContractWhen "Flexibility" Becomes a LiabilityWhat Happens When the Policy Can't Sustain ItselfThe Added Risk of Premium FinancingTo Be Fair: When IUL Might Be AppropriateThe Right Buyer for IULThe Non-Negotiable ConditionWhat Actually Works: Whole Life as Part of a Retirement PlanThe Volatility BufferTax-Neutral AccessThe Death Benefit as Permission to SpendHow to Use ItThe Questions Worth Asking Before You CommitWhat a Plan Built on Certainty Looks LikeBook a Strategy CallFAQsIs IUL good for retirement income?What is the biggest risk of using IUL in retirement?Can IUL replace a 401(k) or IRA for retirement?What is the difference between IUL and whole life for retirement planning?What happens if my IUL policy lapses in retirement? Key Takeaways IUL is built on a one-year renewable term chassis, meaning mortality costs are contractually guaranteed to rise each year, peaking exactly when you need the policy to perform most reliably. The zero floor on crediting does not mean your cash value can't decline. Fees, mortality costs, and loan interest still come out regardless of how the index performs. The "flexibility" of IUL premiums is often a behavioral trap. Missed payments don't announce themselves. Policies deteriorate quietly. Using policy loans for retirement income adds a third layer of cost on top of already-rising mortality charges and fees, compounding the risk of lapse. If a policy lapses with outstanding loans and cash value above your cost basis, a taxable event is triggered. In retirement, that's one of the worst times to absorb an unexpected tax bill. IUL has a legitimate, narrow use case. For most people, whole life serves as the certainty layer within a diversified retirement system. What Is an IUL, and How Does It Actually Work? An Indexed Universal Life policy is a form of permanent life insurance with three components: a death benefit, a cash value account, and a premium. On the surface, that's similar to whole life. The distinction is in how the cash value grows, and what's guaranteed. The Index Crediting Structure With an IUL, your cash value is credited based on the performance of a market index, most commonly the S&P 500. Two limits govern that crediting. A floor (usually 0%) means that if the index goes negative, your credited amount doesn't go below zero. A cap limits how much you receive in a strong year, typically anywhere from 6% to 15%, depending on the contract. The important thing to understand: you're not actually invested in the index. The insurance company contractually agrees to credit your cash value according to how the index performs, up to the cap, and no lower than the floor. You don't receive stock dividends. You don't get the full return. You get the index's price movement, constrained at both ends. Point-to-Point Crediting The crediting is measured from your policy anniversary date to the next. The index could surge dramatically mid-year and then pull back before your anniversary, and you'd receive little or no credit for any of that movement. Some contracts offer two-year or three-year point-to-point options with higher caps or participation rates. But those extended windows also mean extended periods with no crediting at all. The Flexible Premium IUL premiums are marketed as flexible. You can pay more or less within certain limits. That sounds like a generous feature. What it actually means for your retirement plan is something we'll come back to shortly. It's not as generous as it sounds. The Retirement Risk No One Warns You About Here's where the pitch and the reality start to diverge. Individually, most of what's in an IUL illustration is technically accurate. Together, the assumptions stack up in ways that don't show up in the numbers, and the consequences tend to land at the worst possible time. The Cost That Keeps Climbing IUL is built on a one-year renewable term chassis. The cost of insurance increases every single year as you age. That's not a possibility. It's contractually guaranteed. In the early years, that cost is low and relatively painless. But as you approach retirement, the exact period you plan to draw income, those mortality charges accelerate sharply. They don't plateau. They keep climbing through your 70s and 80s. For anyone planning retirement with IUL as a central piece, this trajectory is a serious structural problem. Compare that to whole life. A properly structured whole life policy has level premiums and level costs, guaranteed for life. The insurance company bears that cost certainty. With an IUL, you do. And the policy has to absorb rising costs whether or not the index cooperates. Why the Illustration Is Not the Contract An IUL illustration is a lengthy document, often around 60 pages. Whole life illustrations run closer to 20. That's not a coincidence. Financial educator Todd Langford on IUL has explored in depth why the math behind these illustrations so often breaks down in practice. The IUL document is full of disclosures: the company is not responsible for future performance, caps and participation rates can change, and projections are not guarantees. Understanding the full picture of IUL risks before committing is essential. The whole life illustration is shorter because the guaranteed column is real. The company stands behind those numbers by contract. IUL illustrations often show impressive projections: millions of dollars in 30 years, tax-free income throughout retirement. They also reassure you that a 0% crediting floor means you can't lose money. But both can't be true at the same time. Any year that credits 0% interrupts compounding. While the index credits nothing, mortality costs and administrative fees still come out of your cash value. A zero-credit year is a negative year for your actual cash value. You're just not losing it through index crediting. The phrase says "zero is your hero." But if you're also being shown $5 million at the end of 30 years, some of those years will credit zero. Factor in flat years, rising mortality costs, and fees. The projected number starts to look very different from what the contract actually guarantees. When "Flexibility" Becomes a Liability Flexible premium sounds like a feature. In retirement planning, where discipline and predictability matter most, it often functions as a liability. The pattern plays out like this: a policyholder funds consistently for years. A financial pressure point arrives, a family emergency, a period of lower income, or an unexpected expense. They miss a payment, intend to make it up, then miss another. The agent isn't servicing the policy, so there's no annual review to flag it. The automatic draft stops when they change bank accounts and never gets restarted. Months become years. The cash value has to cover mortality costs and fees on its own. It depletes faster. The policyholder is further from the illustrated outcome every quarter, and they don't know it. To be fair, disciplined policyholders who fund consistently and review annually don't fall into this trap. But the product's flexibility makes discipline optional, and optional discipline is a risk in any long-term financial plan. Whole life's level premium creates discipline precisely because it removes the choice. If you can't pay, the contract has a built-in mechanism: reduced paid-up, which converts the policy to a smaller paid-up policy rather than letting it lapse. Nothing equivalent exists in an IUL.  That's also why IUL for Infinite Banking doesn't work. Banking requires certainty, and IUL can't provide it. What Happens When the Policy Can't Sustain Itself This is the scenario that doesn't make it into the sales presentation. And it's exactly the scenario that can materialize in retirement. Index crediting comes in lower than projected for a few years. Mortality costs keep climbing. Policy loans taken to fund retirement income carry their own interest charges. At some point, the policy can't sustain itself. The owner faces a stark choice: inject a lot more premium, potentially many times what was originally being paid, or let the policy lapse. For someone on fixed retirement income, coming up with a large unexpected premium often simply isn't possible. If the policy lapses with outstanding loans and cash value above your co

There's a persistent claim that indexed universal life insurance is doomed to fail because rising costs of insurance will eventually eat the policy alive. The story usually goes something like this: someone bought a universal life policy decades ago, paid faithfully, and one day got a notice that the policy was about to lapse unless they wrote a big check. That story has a grain of truth behind it, but the magnitude of the claim is wildly overstated. The original problem traces back to universal life policies sold in the 1980s as cheap alternatives to whole life. Those sales relied on interest rate assumptions above 8 percent that never materialized, which meant the premiums being paid were never enough to keep the policies functioning long term. The question worth asking today is different. If you set out to deliberately design an indexed universal life policy badly — to actually make it collapse — how badly would you have to screw it up? To find out, we ran the test. Starting with a properly structured policy on a 35-year-old male, $30,000 annual premium, and the minimum non-MEC death benefit of about $637,000, we then doubled, tripled, quadrupled, and kept going to see when the policy would actually fail. Doubling the death benefit didn't break it. Tripling didn't break it. Quadrupling didn't break it. Even five times the appropriate death benefit kept the policy alive through age 121. It took six times the correct death benefit — a $3.8 million death benefit on a premium meant to support $637,000 — before the policy finally collapsed in the client's early 90s. The lesson is straightforward: when an IUL fails, the product isn't the problem. The design is. And a properly designed policy carries lifetime fees averaging around 0.2 to 0.25 percent of cash value, which is a remarkable deal for managed money. _______________________________________________________ If you're holding an IUL illustration and want to know whether it's structured correctly — or if you're trying to figure out whether what you already own is built to last — schedule a call or send us a message and we'll take a look at it with you.

In this Interview with wealth expert Kuldeep Madan, we break down how whole life insurance premium financing works for ultra-wealthy family's and when it's actually a viable strategy. We then compare using whole life insurance and IUL's for premium financing and which one wins in the end.Watch the Interview on Youtube for Visuals - https://youtu.be/ljkaP_J7ZAkWant a Whole Life Insurance Policy? Go Here: https://bttr.ly/bw-yt-aa-clarityBuy Your Tickets to the Life Insurance Summit! Click Here: https://betterwealth.com/summitConnect with Kuldeep's Team: https://madanplus.com/team/kuldeep-madan/Learn More About BetterWealth: https://betterwealth.comChapters:00:00 - Introduction to Whole Life Premium Finance 01:08 - When Whole Life Premium Financing Works 02:30 - Risks and Failures in Indexed Universal Life (IUL) 04:17 - Solving Liquidity Problems for Ultra-Wealthy Families 06:44 - Estate Planning and Opportunity Cost 08:30 - Using External Leverage 09:03 - Client Profiles and Estate Freezing 10:13 - Educating Family Offices 12:00 - Whole Life vs. IUL and GUL 15:31 - Challenges of Financing GUL 16:03 - Closing Remarks and Event AnnouncementDISCLAIMER: https://bttr.ly/aapolicy*This video is for entertainment purposes only and is not financial or legal advice. Financial Advice Disclaimer: All content on this channel is for education, discussion, and illustrative purposes only and should not be construed as professional financial advice or recommendation. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of the information on this channel. Neither host nor guests can be held responsible for any direct or incidental loss incurred by applying any of the information offered.

Few financial products generate as much excitement (or possibly as much confusion) as indexed universal life insurance.  IUL insurance has become one of the most aggressively marketed policy types in the industry, pitched with language that sounds almost too good to overlook, including terms such as market-linked upside, downside protection, tax-advantaged growth, and flexible premiums. https://www.youtube.com/live/fZS1uPmsCS0 Some of that is real, but we feel strongly that context and nuance should be applied when procuring any IUL policy, as it can obscure risks that don't become apparent until years after you have signed. This article is an honest guide to what an IUL policy actually is, how it works under the surface, what it promises versus what it delivers, and why, for those building a financial strategy around Infinite Banking, we consistently and strenuously recommend a different path. Key TakeawaysWhat Does Indexed Universal Life Insurance Mean?How Does an IUL Policy Work?The Floor, Cap, and Participation Rate ExplainedThe FloorThe CapThe Participation RateFlexible Premiums – Feature or Risk?IUL vs. Whole Life Insurance: Key DifferencesCan You Use an IUL for Infinite Banking?Why The Money Advantage® Recommends Whole Life for IBCWho Is IUL Best Suited For?IUL Pros and Cons: An Honest AssessmentWant Help Evaluating Your Policy Options? Key Takeaways An indexed universal life insurance policy is a form of permanent life insurance that ties cash value growth to the performance of a stock market index, subject to caps, floors, and participation rates. IUL offers flexible premiums and the potential for market-linked returns without direct market exposure. That flexibility, however, comes with complexity and risk that most sales presentations understate. The 0% floor protects against index-driven losses, but it does not protect against policy fees and rising cost of insurance charges, which can erode cash value even in flat or positive market years. For those practicing Infinite Banking, IUL introduces variables that conflict with the certainty and control the strategy requires. Whole life insurance remains the preferred vehicle. IUL is not inherently a scam or a bad product. It is, however, a complex one, and complexity without understanding is where financial damage happens. What Does Indexed Universal Life Insurance Mean? An indexed universal life insurance policy is a type of permanent life insurance with two distinguishing features: flexible premiums and a cash value component that earns interest based on the performance of a stock market index, most commonly the S&P 500. You don't own shares or invest directly in the market. Instead, the insurance company credits interest to your cash value based on how the chosen index performs over a given period, within defined parameters, including a floor (usually 0%), a cap (often 10-12%), and a participation rate (the percentage of index gains you actually receive). The core appeal of an indexed universal life insurance policy is quite understandable, as you get some exposure to market growth without the risk of direct market loss. Your cash value won't decline because of a bad year in the S&P 500, and that's exactly what the floor is for.  But with that comes a caveat: your gains are limited in strong years by the cap and the participation rate. Now, on the face of it, that may sound like a reasonable tradeoff. And for some people, in some situations, it certainly can be. But the full picture is far more complicated than the pitch suggests, and, once again, the complications tend to show up years down the road. How Does an IUL Policy Work? The mechanics of an IUL policy involve more moving parts than wholelife insurance, and understanding those parts is essential before committing to one. When you pay a premium, that money is allocated across three buckets: the cost of insurance (COI) – the actual price of maintaining your death benefit – policy fees and administrative charges, and whatever remains flows into your cash value account. The cash value is then credited with interest according to the index strategy you've selected. This is where the structure differs most from whole life insurance. With a whole life contract, your cash value growth is guaranteed by the contract, and dividends from a mutual company add to that growth. With IUL insurance, your credited interest depends on external index performance, constrained by the carrier's rules, which the carrier can change. That glaring distinction is far more telling than it might seem at first glance. The Floor, Cap, and Participation Rate Explained These three mechanics define the boundaries of your IUL's cash value growth, and they deserve a close look. The Floor The floor is the minimum interest credited to your cash value in any given period, usually 0%. If the S&P 500 drops 15% in a year, you are credited 0% rather than absorbing that loss.  That sounds protective - and it is, in a narrow sense.  But a 0% credit year doesn't mean your cash value holds steady. Policy fees and cost of insurance charges are still deducted regardless, which means your cash value can shrink even when the floor is doing its job. The Cap The cap is the maximum interest credited, regardless of how well the index performs. If your policy has a 10% cap and the S&P 500 returns 25% in a given year, you receive 10%. The other 15% stays with the insurance company. In a strong bull market, the cap quietly siphons off the upside that made the product appealing in the first place. The Participation Rate Finally, we have the participation rate, which determines what percentage of the index gain (up to the cap) you actually receive. An 80% participation rate on a 10% index return means you are credited 8%. However, caps and participation rates are not permanently fixed. Insurance carriers can adjust them. The concern here is that what may be illustrated at the point of sale may not be what you experience five, ten, or twenty years into the policy. Flexible Premiums – Feature or Risk? One of the most marketed features of indexed universal life insurance is premium flexibility. Unlike traditional whole life, where the base premium is fixed and contractually guaranteed, IUL allows you to vary premiums within certain limits. You can pay more in strong years and less in lean ones. While whole life with paid-up additions riders can also offer flexibility for adding extra premium, those additional contributions are optional. Traditional whole life does not depend on extra rider premiums to keep the policy in force. That sounds like freedom. In reality, it could be viewed as a trap, of sorts. The issue is that underfunding an IUL policy (paying less than the amount needed to cover insurance charges and fees) doesn't trigger an immediate consequence. The policy stays in force, but the shortfall compounds over time.  Alarmingly, because the cost of insurance in a universal life chassis increases as you age, the gap between what you're paying and what the policy requires can widen dramatically in your 60s, 70s, and beyond. This is one of the most commonly realized negatives of IUL insurance. Policyholders who reduced premiums during their working years discover decades later that their policy is on the verge of lapsing, and the cost to keep it alive has absolutely skyrocketed. By the same token, flexible premiums can work for disciplined, well-informed owners who understand the risks. But the flexibility itself is not the safety net it is frequently marketed as - it's an anxiety-inducing variable that requires active management for the life of the policy. IUL vs. Whole Life Insurance: Key Differences A huge number of people researching IUL are comparing it to whole life. But while the two products are both permanent life insurance, their internal architecture is fundamentally different. IULWhole LifeCash value growthTied to index performance, subject to caps, floors, and participation rates. Not guaranteed.Contractually guaranteed growth, plus highly anticipated dividends from a mutual company.PremiumsFlexible - can vary year to year.Fixed and level - guaranteed never to increase.Cost of insuranceIncreases annually with age. Deducted from cash value.Built into the level premium structure. No separate increasing charge.Death benefitCan fluctuate depending on funding and policy performance.Guaranteed for life.ComplexityHigh - multiple moving parts, carrier-adjustable terms.Low - contractually defined.Policy loan behaviorLoan interest plus uneven crediting can create negative arbitrage.Predictable. Cash value continues to earn while loans are outstanding. Either way, neither product is universally or objectively better. They serve different purposes, and the differences in guarantees, predictability, and internal cost structures are significant, especially for anyone planning to use their policy as a long-term financial tool. Can You Use an IUL for Infinite Banking? Some advisors market indexed universal life for “banking” strategies, making the case that IUL's potential for higher returns makes it a superior vehicle for building a personal banking system. That is not the same thing as the Infinite Banking Concept as taught by Nelson Nash. As Authorized Infinite Banking Practitioners, we believe Infinite Banking is properly implemented with dividend-paying whole life insurance because the concept is about becoming your own banker by taking the banking function into your own life. And our position is not arbitrary. The Infinite Banking Concept is built on predictability, certainty, and control. You need confidence in how your cash value system will function over time.  You need guaranteed access to policy loans. You need a death benefit that doesn't fluctuate....

Caleb and Revin ( @LIFE180 ) cover the new IUL strategy making rounds on the internet called, Kaizen. The conversation gets tense as Revin calls out Caleb for interviewing Matt Sapaula and shares his perspective on network marketing, and industry debates. Want a Whole Life Insurance Policy? Go Here: https://bttr.ly/bw-yt-aa-clarity Buy Your Tickets to the Life Insurance Summit! Click Here: https://betterwealth.com/summit Want More Free Whole Life Insurance Resources & Education? Go Here: https://bttr.ly/yt-bw-vault Learn More About BetterWealth: https://betterwealth.comChapters: DISCLAIMER: https://bttr.ly/aapolicy *This video is for entertainment purposes only and is not financial or legal advice. Financial Advice Disclaimer: All content on this channel is for education, discussion, and illustrative purposes only and should not be construed as professional financial advice or recommendation. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of the information on this channel. Neither host nor guests can be held responsible for any direct or incidental loss incurred by applying any of the information offered.

Is whole life insurance the right choice for your financial future? In this episode, Russ and Joey break down why whole life insurance is the ideal choice for infinite banking compared to Indexed Universal Life (IUL) or Variable Universal Life (VUL), both of which have gained attention in recent years.Nelson Nash, the founder of IBC, believed that whole life insurance provides the most reliable and predictable returns, as opposed to the volatility and limitations of IUL and VUL policies.Tune in to understand the differences and why whole life could be essential in your financial freedom journey.Top three things you will learn:-Why whole life insurance is the best choice for infinite banking-The risks of using IUL and VUL for infinite banking-How to build long-term wealth with whole life insuranceDisclaimer: The opinions expressed on this podcast are solely those of the hosts and guests and do not constitute financial advice. Always consult a licensed professional for financial decisions.This episode is sponsored by a podcast show partner. We may receive compensation if you use links or services mentioned in this episode.The hosts may have a financial interest in the programs or services mentioned in this episode.

In this episode, James explains the key differences between whole life insurance and IUL within the Infinite Banking Concept®, focusing on control, guarantees, and long-term capital formation. He breaks down how policy structure impacts performance and addresses common misconceptions around “market-like returns.” As always, we hope you enjoy the episode, and thank you for listening!Infinite Banking Foundations Series: ➫ www.youtube.com/playlist?list=PLx…H91ORIHB5nwNpQSMEMake sure to like and subscribe to join us weekly on the Banking With Life Podcast!━━━Become a client! ➫ www.bankingwithlife.com/how-to-fast-t…ur-own-bankerBuy Nelson Nash's 6.5 hour Seminar on DVD here: ➫ www.bankingwithlife.com/product/the-5…ecorded-live/ (Call us at (817) 790-0405 or email us at myteam@bankingwithlife.com for a DISCOUNT CODE)Register for our free webinar to learn more about Infinite Banking... ➫ www.bankingwithlife.com/getting-started-webinar━━━Implement the Infinite Banking Concept® with the Infinite Banking Starter Kit...The Starter Kit includes Becoming Your Own Banker by R. Nelson Nash and the Banking With Life DVD by James Neathery.It's the perfect primer for everyone interested in becoming their own banker.Buy your starter kit here: ➫ www.bankingwithlife.com/product/becom…pecial-offer/━━━Learn more about James Neathery here: ➫ bankingwithlife.com━━━Listen on your iPhone with Apple Podcasts: ➫ podcasts.apple.com/us/podcast/bank…st/id1451730017Listen on your Android through Stitcher: ➫ www.stitcher.com/podcast/bank...Listen on Soundcloud: ➫ @banking-with-life-podcast━━━Follow us on Facebook: ➳ www.facebook.com/jamescneathery/━━━Disclaimer:All content on this site is for informational purposes only. The content shared is not intended to be a substitute for consultation with the appropriate professional. Opinions expressed herein are solely those of James C. Neathery & Associates, Inc., unless otherwise specifically cited. The data that is presented is believed to be from reliable sources and no representations are made by James C. Neathery & Associates, Inc. as to another party's informational accuracy or completeness. All information or ideas provided should be discussed in detail with your Adviser, Financial Planner, Tax Consultant, Attorney, Investment Adviser or the appropriate professional prior to taking any action.

In this episode of the Power of Zero Show David McKnight gives you a blueprint with the key steps to follow for a successful and stress-free retirement if you're about five years away. The first step is figuring out your retirement income shortfall, the income you'll need every month in retirement, as well as how much of that will be covered by sources like Social Security and pensions. The retirement income shortfall represents the amount of income your retirement assets need to produce in order to fund your lifestyle. One strategy many retirees rely on is taking a portion of their liquid retirement savings, often from a traditional IRA or 401(k), and rolling it into an annuity designed to produce inflation-adjusted lifetime income. The second pillar of the blueprint discussed by David are investments: Roughly 70% to a total U.S. stock market index fund, and 30% to a total international stock market index fund. While things like paying the electric bill or putting food on the table are covered by your guaranteed income sources, this portfolio is designed to fund discretionary expenses (e.g. taking the grandkids to Disneyland, traveling, etc.) and unexpected shock expenses. David emphasizes that, by investing this discretionary bucket entirely in stocks rather than bonds, you increase the likelihood that the portfolio will last through your actuarial life expectancy. "When properly structured and funded, an index universal life policy or IUL can serve as a volatility buffer within your retirement plan", says David. Furthermore, a IUL policy can also provide a death benefit that can be accessed in advance of your death for the purpose of paying for long-term care… Remember: Retirement planning isn't about guessing what the market will do, it's about building a system where your basic needs are guaranteed, your growth assets continue compounding and you have the tools in place to manage volatility and unexpected risks.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com

Indexed universal life insurance should outperform whole life insurance over the long run — that's the expectation. But how far do cap rates, participation rates, and spreads need to fall before that advantage disappears? We ran 30-year rolling scenarios using S&P 500 data from 1980 through 2025 to find out. The analysis accounts for policy expenses and strips out bonuses and minimum floors to keep the comparison conservative. The short answer: IUL has to get a lot worse before it just matches whole life expectations. A cap rate below 8%, a participation rate around 40%, or a spread near 12% — sustained from day one — is what it takes. And those thresholds sit well below what most properly designed policies offer today. Age and accumulation timeline also play a role. Whole life tends to reward younger buyers with stronger compounding, while IUL returns stay more consistent regardless of when you start. That distinction matters when you're deciding which product fits your situation. _____________________________ If you're weighing IUL against whole life and want to see how the numbers shake out for your specific circumstances, schedule a call and we'll walk through it with you.  

The bank refused the loan — but 40 years of whole life insurance quietly said yes. In this episode, Mary Jo shares one of the most powerful real-life examples she's ever seen of what traditional whole life insurance can become over time — even when it's not structured for Infinite Banking. This client started buying whole life policies at age 20 and simply stayed consistent for over 40 years. No fancy strategy. No Infinite Banking design. Just patience, discipline, and a commitment to paying premiums no matter what. When the bank refused to help him rebuild after a major loss, his life insurance stepped in — providing liquidity, flexibility, and control the bank never could. What followed was a complete shift in leverage, power, and perspective. This episode breaks down: Why canceling whole life is often a massive mistake How base-only policies quietly build serious strength over decades What banks don't understand about policy loans And why this client didn't even realize he already owned a bank If you have whole life insurance — or have ever been told to cancel it — you need to hear this.

David McKnight discusses the allocation of $1M if he had it to invest in 2026.  David sees a taxable brokerage account as the least efficient investment account you could possibly own – since it's taxed every year and it's exposed to both short- and long-term capital gains. While this type of account is liquid and can serve as an excellent emergency fund, it's the most tax-unfriendly of all the investment alternatives. The goal, says David, isn't to grow wealth within this type of account, rather to use it as a funding source to systematically build multiple tax-free income streams for retirement. Roth IRAs, which can be funded for a combined $17,200 per year (for your and your spouse's Roth IRA) is the first place David believes the money should go. Next, you should aim at maxing out your Roth 401(k)s – which is $24,500 a person for people under 50 and $32,500 per person. David explains how you can convert taxable money into tax-free money without triggering a massive taxable event and without disrupting your lifestyle. 70% total U.S. stock market index fund, 30% total international stock market index fund is the only allocation you'll ever need, says David. Having to properly structure and fully fund an indexed universal life policy (IUL) is the most misunderstood piece of the strategy discussed by David. The idea is to see an IUL as a way to grow a portion of the $1M portfolio safely and productively, and not to use it as an investment replacement or stock alternative… Historically, IULs have grown 5-7% in net fees over time – with zero stock market risks. The goal of day one of retirement is to have 3-5 years of living expenses sitting in your IUL's cash value, tax-free. This is your volatility buffer. According to a recent Ernst & Young study, the strategy discussed in this episode provides far more income, a far greater likelihood that your money will last through life expectancy and far more money to the next generation compared to the investment-only approach. Suze Orman recommends the exact same strategy but with a difference: Instead of using an IUL she suggests using a savings account that has rock bottom taxable rates of return. However, an IUL is a more effective tool, as it grows far more productively as tax-free, protects your principal, and the death benefit can double as long-term care protection. David's strategy doesn't include bonds as an IUL is safer: No sequence of returns risk early in retirement, not being forced to sell stocks in a down market. "I generally don't ever recommend bonds. There are far better instruments that are safer, more productive, and more tax-efficient tools, with IUL being one of them", illustrates David.  Many experts expect tax rates to rise dramatically by 2035 to pay interest on the national debt, bail out Social Security, and bail out Medicare and Medicaid. When that happens, you just don't want to be sitting on a massive taxable account..! The goal is to shift as much as possible from the $1M portfolio into tax-free accounts before 2035 – you want to have them in your Roth IRAs, Roth 401(k)s, and IUL cash value. Conversely, you only want about six months' worth of living expenses sitting in your taxable account.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Dave Ramsey Ernst & Young Suze Orman

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David McKnight discusses the three assets he believes you really need for a stable, predictable tax-efficient retirement.  Getting them right will dramatically reduce the risks that derail most retirements: Market risks, sequence of returns risks, longevity risks, tax risks, and long-term care risks. Stock market investments, with a 70% total US stock market index and a 30% total international stock market index, are the first thing David recommends. He defines them as "Your growth engine, the one that pays for your discretionary expenses in retirement."  David goes over aspirational and shock expenses. A Fixed Index Annuity (or FIA) is the second asset you'll need in retirement. A FIA is the one asset that eliminates the longevity risk, the risk of living so long that you deplete all your other assets.  Then there's Index Universal Life Policy (or IUL). A recent Ernst & Young study found that retirement plans that included IULs, as well as FIAs, provided more income in retirement, a higher likelihood of money lasting through life expectancy, and more money to heirs over the investment-only approach to retirement." Remember: If you withdraw money from your stock portfolio in a down market, you lock in losses and your portfolio has a much harder time recovering.  In other words, the IUL acts as your retirement shock absorber. Did you know that, because of its safe and productive growth, the IUL can serve as what we call a "volatility buffer" in retirement?  And there's more! In fact, an IUL can also serve as a bond alternative during the accumulation years – but without the interest rate risk or bond price volatility. David sees IULs as the most dynamic asset of them all – it's your volatility buffer, your bond alternative, and your long-term care safety net.     Mentioned in this episode: David's new book, available now for pre-order: The Secret Order of Millionaires David's national bestselling book: The Guru Gap: How America's Financial Gurus Are Leading You Astray, and How to Get Back on Track Tax-Free Income for Life: A Step-by-Step Plan for a Secure Retirement by David McKnight DavidMcKnight.com DavidMcKnightBooks.com PowerOfZero.com (free video series) @mcknightandco on Twitter  @davidcmcknight on Instagram David McKnight on YouTube Get David's Tax-free Tool Kit at taxfreetoolkit.com Ken Fisher Ernst & Young

In this interview, Matt Sapuala (Patrick Bet-David's protégé and a long-time insurance leader) sits down to address the biggest flashpoints in the life insurance world, IUL vs. whole life, MLM controversies, Kyle Busch's “scam” headline, and what actually matters for how policies are designed. They go deep into living benefits, and the importance of protecting income from future disasters. Want a Life Insurance Policy? Go Here: https://bttr.ly/bw-yt-aa-clarity Want FREE Whole Life Insurance Resources & Education? Go Here: https://bttr.ly/yt-bw-vault Want Us To Review Your Permanent Life Insurance Policy? Click Here: https://bttr.ly/yt-policy-review ______________________________________________ Learn More About BetterWealth: https://betterwealth.com ==================== DISCLAIMER: https://bttr.ly/aapolicy *This video is for entertainment purposes only and is not financial or legal advice. Financial Advice Disclaimer: All content on this channel is for education, discussion, and illustrative purposes only and should not be construed as professional financial advice or recommendation. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of the information on this channel. Neither host nor guests can be held responsible for any direct or incidental loss incurred by applying any of the information offered.

In this episode of the Smart Real Estate Coach Podcast, I'm bringing back a good friend of the community, Jim Oliver, one of the world's foremost authorities on Infinite Banking and the founder of CreateTailwind. Jim has 38 years in the financial trenches, 12 of those under the late R. Nelson Nash, the pioneer of the Infinite Banking Concept®. Together, we break down how to take back control from traditional banks, keep more of the interest you're giving away, and use properly structured whole life policies to fund cash-flowing real estate and businesses instead of Wall Street.     We talk about the big problems with indexed universal life (IUL) being sold as "infinite banking," why guarantees and design matter, and how to vet a real Infinite Banking coach. Jim then gives a simple, clear explanation of how banks actually make money off your deposits, how Infinite Banking makes you the depositor, bank owner, and borrower, and the three biggest mistakes people make when they start.    We finish with a powerful conversation about escaping the 9–5, changing your identity to "investor," and designing a 2026 vision where you stop exchanging time for money and your assets pay you instead.   Key Talking Points of the Episode   00:00 Introduction 01:49 What's new in the Infinite Banking world? 02:06 The IUL problem: when "infinite banking" gets bastardized 03:48 Whole life vs. universal life for Infinite Banking 04:12 Chasing short-term optics with low base / high PUAs 05:26 How to vet a real Infinite Banking mentor 08:22 How Infinite Banking really works 10:47 The problem with traditional banking 11:48 Why use a whole life policy as your "bank"? 12:50 How to reach Jim & what working with CreateTailwind looks like 13:58 3 biggest mistakes people make with Infinite Banking 16:17 Entrepreneurship and escaping the 9-5 grind 18:07 Identity & environment: two levers to pull for 2026 19:37 Observe, assist, lead, then teach 20:34 Media, markets & the danger of the herd   Quotables   "The problem is that we finance every single thing that we buy. We either pay interest to someone else or we give up interest that we could have earned somewhere else."   "Any time you have a nine to five, I don't care if you're making millions of dollars a year, you're in captivity."   "If you're in the herd, you're in the majority. You're wrong."   Links   CreateTailwind https://createtailwind.com   Breakaway Wealth https://youtube.com/playlist?list=PL-nWVcVpkLqnDXSdqejEqDxR20TpKfe7z&si=fCMS-e95ckyrQQGw   Jim Oliver jimoliver@createtailwind.com   NREIG https://smartrealestatecoach.com/nreig   QLS 4.0 - Use coupon code for 50% off https://smartrealestatecoach.com/qls Coupon code: pod   Apprentice Program https://3paydaysapprentice.com Coupon code: Podcast   Masterclass https://smartrealestatecoach.com/masterspodcast   3 Paydays Books https://3paydaysbooks.com/podcast   Strategy Session https://smartrealestatecoach.com/actionpodcast   Partners https://smartrealestatecoach.com/podcastresources