I am 27 and i just started my ROTH IRA and deposited the max for 2024! I feel stupid for how long it took to get my life straight. The problem here is, what is the best way to invest the money to grow to $1 million for retirement?
I believe every Investor should start with ETFs for a solid foundation, then diversify across asset classes and maintain disciplined, regular investing to minimize risks and maximize growth.
You don't need to find the next NVDA to succeed in investing. Just choose top-notch ETFs and partner with a financial advisor like I did. I turned $100k into $20,000 in annual dividends-a significant milestone for me today.
Impressive! I admit I'm scared about retirement as I turn 60 on my next birthday. I need to ensure I have enough money to survive on. How can I consult your advisor? My retirement account isn't performing well.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
People are facing a harsh retirement. and it's even harder for workers to save due to low-paying jobs, inflation, and high rents. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire in.
The increasing prices have affected my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
It's recommended to save at least 20% of your income in a 401k. Sonya Lee Mitchell taught me to estimate how much you should save based on your age and income. I've been with her for years now and her decades of experience in the markets translate to chunks of value in so may ways! She has upscaled my portffolio and even got me reading self help books.
I'm working with Sonya Lee Mitchell as my fiduciary advisor. Simply look up the name. You would discover the information you needed to schedule an appointment.
I work with Sonya Lee Mitchell as my fiduciary advisor. Simply look up the name. You would discover the information you needed to schedule an appointment.
The problem we have is because Most people always taught that " you only need a good job to become rich " . These billionaires are operating on a whole other playbook that many don't even know exists.
" It is remarkable how much long term advantage people like us have gotten by trying to be consistently not stupid , instead of trying to be very intelligent."
The wisest thing that should be on everyone mind currently should be to invest in different streams of income that doesn't depend on government paycheck, especially with the current economic crisis around the world. This is still a time to invest in Stocks, Forex and Digital currencies.
Even with the right technique and assets some investors would still make more than others. As an investor, you should've known that by now that nothing beats experience and that's final. Personally I had to reach out to a stock expert for guidance which is how I was able to grow my account close to $35k, withdraw my profit right before the correction and now I'm buying again.
I have 35% of my capital investments in an IRA, 25% in index funds, and the balance spread across other investment accts totalling over $250k. I took a big hit in Q2, 2023. Right now i am just looking for ways to recover in 2024.
There are a lot of strategies to make tongue-wetting profit especially in this down market, but such sophisticated trades can only be carried out by proper market experts
I agree with you. I started out with investing on my own, but I lost a lot of money. I was able to pull out about $200k after the 2020 crash. I invested the money using an analyst, and in seven months, I raked in almost $673,000
Rachel Sarah Parrish is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market.
Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are alot of wealth transfer in this downtime if you know where to look.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
I'm very cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like "Tracy Annette Webb" I've worked with her for some years and highly recommend her. Check if she meets your criteria.
I am going to look her up, I have about $81k i want to start with, might be small but it's better than nothing though. Since the 08 crash is playing out again.
I just 30 this year and have just under $40k in my own 401k and another $10k between my other retirement accounts. My wife has about $41k in her retirement accounts (she is not currently working). I currently make close to $63k a year. I only do 5% though to my 401k for the company match and another 10% of my income is split between an HSA and a ROTH IRA
51 years old. I have $295,588.25 in my Fidelity retirement account. I cranked my contributions up to 35% and I do all the investing on my own. Fidelity just holds my ETFs/stocks. I made that change earlier this year. I'm hoping to end the rat race by 60 but it's looking more like 63-ish. I want to have $1.5M and bring in about $60k in dividends each year. Pedal to the floor! Thanks for the video. Great content.
I completely agree; I am 60 years old, recently retired, and have approximately $1,250,000 in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, having a portfolio-advisor for investing is genius!
As a new investor it's always great to hear from a person who has gone through all the difficult times and come ahead of it. What are some strategies i can employ to be successful?
Thanks, I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a call.
@@lawerencemiller9720what advice would you give a 22 year old on the investing side, i started up my fidelity through my job last year, still in the 4 Digits.. I do Real Estate investing but soon to be flipping houses. Would you say continue the path I am currently on for a great life at an older age?
Getting a head start by beginning to invest early is the most effective way to build wealth, with investment taking precedence. I've learned from last year's experience that starting early allowed me to create a better life through early investments this time around.
Indeed, currently I'm managing my finances wisely and being frugal. In the last 19 months, my investments grew by 43%, adding over $650K in profits. However, I've had losses in the past month, making me anxious. I'm unsure whether to sell everything or wait.
I'm intrigued by the idea of investing with an analyst, it seems like a wise choice in today's market. Could you provide me with some guidance on how to get in touch with her?
The rich are money minded. That is one thing I learnt from the start. I have always wanted to build wealth. I have set out $80k that I had been saving since 2020, and I want to put it in the stock market so I can grow my wealth. Any recommendations?
It is really good that you do. I know a lot of people who have made a lot from the stock market. But you need to spend a lot of time studying the market if you want to be a pro, or you use a stock advisor who really knows what they are doing.
For real, people underestimate how much they can rake in from the stock market. Started with $120k just before the pandemic hit. Many people's portfolios tanked, but I rode through with my financial advisor, and even made more than $86k within just five months of starting, and it's been an awesome ride since then.
@@sommersalt88 This is something I've heard of severally, but I just don't know how to find an advisor. If you'll be kind enough, can I ask who your financial advisor is?
The thing is that I really don't like making such recommendations. But there are many freelance wealth managers you could check out. I have been working with ''Jill Marie Carroll'' for about four years now, and she's made decent returns. If she meets your discretion, then you could go ahead.
I used to think every investor went broke during recessions, meanwhile some make millions. I also thought everybody went out of business during the Great Depression, but some went into business. Bottom line, there's always depression for some, and profit for others, it all starts from having the right mindset. That said, I've set asides $250k to invest for future, unfortunately l'm a complete noob.
True, A lot of folks downplay the role of professionals until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
Can't divulge much, it's only right you do your due diligence. I'm been guided by Olivia Maria Lucas and most likely, the internet is where to find her deets.
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
Like Warren Buffet said, dividends are only good if the business you’re investing into can’t make good use of that capital. So if you’re trying to invest into businesses with actual growth, looking at dividends is a waste of time. Why are you investing into a company if they’re returning capital to you because they think you can make better use if it than they can. It’s not much different from bond investing. The way I see it if you have a $1 million at some point, that’d be enough to create a portfolio that would pay you between 50k-70k in dividend income...
Nobody knows anything you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.
@@322dawgg I actually subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your coach?
@@322dawgg She appears to be a true authority in her profession. I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. She owes me a fiduciary duty to act in my best interests. I set up an appointment to use her services.
I think you got switched up. Warren Buffet absolutely adores dividend stocks. Coca Cola is one of his most legendary stock picks. Now what he refuses to do is give a dividend for BRK. iirc, they gave a dividend on a single occasion and Buffett claims he must've fallen asleep at that meeting.
I checked the whole life insurance chart that my agent provided. I will have to pay 15 years of insurance money, just to break even with the original principle, because the fees eat away the growth.
Which is why you put more of your discretionary money into your policy to force growth. The policy also has to be structured correctly, all whole life policies aren’t structured the same.
When someone wants to become their own bank using a life insurance policy, they typically pay a monthly premium. In this example thr premium is $100 per month, which adds up to $1,200 per year. In the first year, the cash value of the policy is projected to be $833 GUARANTEED To calculate the portion of the premium going towards insurance costs, we subtract the cash value from the total premium paid. In this case, $1,200 - $833 equals $367. Therefore, $367 is the amount that goes towards the insurance coverage in the first year. To break it down further, if we divide the $367 by 12 (months), we find that approximately $30.58 is allocated towards the insurance cost each month. The remaining amount, $69.42 per month, goes towards building the cash value component of the policy. It's important to note that the cash value can be accessed by the policyholder, either by withdrawing it or borrowing against it. However, the available amount is limited to what has accumulated in the cash value over time.Overall the policy have a significant portion of the premium going towards the cash value component, providing potential savings or investment growth within the policy.
I recently inherited almost $500k. I REALLY need to make this money work for me, and not just disappear over time. I've been scrambling for somewhere to put the money, where I can make an effort to use the gains to pay bills so I can quit my job . All roads have pointed to the financial market of some sort which is a good idea buh where else should I put money besides the financial market? We have a 13% RPI rate so cash is tough.
I agree Yep great question and that’s always the one - where would you rather be if you have an option. Personally I’m always invested aside from a small emergency fund. Financial-market for me seem the only way forward with my long time horizon (accrued almost $1.4m in gains since 2020 ) but if you don’t have that fortune of time it’s a tough market out there almost nowhere feels safe! . Just know the risk you're comfortable with . Mistake is expensive
Great info really but if Im to ask, if you had the opportunity to invest a set or buy the whole share in a Etf and the remainder goes into a index for which would allow you eventually purchase the fractional shares, Would you give that an option?
@@jeffery_Automotive well a million in profit is a nice milestone, how did you achieve that? I guess you have a proven trading strategy that you've spent a lot on please share more info !! and YES i dont want to make
Lol, I began with an Advisor by name Julie Anne Hoover. She’s sec verified and an ISDA member. Her approach is transparent allowing total ownership and control over my portfolio and fees are very reasonable in comparison with my ROI.
@@jeffery_Automotive Thank you for this tip. It was easy to find your Advisor. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
If you wanna be successful, you most take responsibility for your emotions, not place the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life.
The first step to successful investing is figuring out your goals and risk tolerance either on your own or with the help of a financial professional but is very advisable you make use of a professional like I did. If you get the facts about saving and investing and follow through with an intelligent plan, you should be able to gain financial security over the years and enjoy the benefits of managing your money.
The stock market rally run is gone, but I'm not sure if equities will swiftly recover, keep falling, or fluctuate in a narrow range for a few weeks, or if things will quickly get worse. I'm under pressure to increase my $300k reserve.
Making touch with financial advisors like Kimberly Kent who can assist you restructure your portfolio, would be a very creative option. Personal financial management will be crucial to navigating the next difficult times.
I'm a certified private wealth advisor (CPWA). The problem with whole life is that for starters, there's a death benefit and as such, you'll pay dearly, for that death benefit. The agent who sells you the policy gets a commission, how do you think that gets paid? There's a surrender schedule and most often times, the surrender schedule is longer than the average marriage in the US. You can literally purchase dollar cost average into a basket of stocks and bonds and use those as collateral, and use a line of credit against it to accomplish a similar outcome. You can also borrow up to 50K from your 401K. As the professionals say, buy term and invest the rest. Whole life is using an insurance policy to accomplish two things; life insurance and investment return. At its core, it makes no sense.
Thanks for the feedback; it is true that there is a contingent of financial advisors who don’t life whole life; that’s what’s great about the investment universe, we can view all options on offer and make decisions. With regard to the agent getting a fee, that is true, but not a reason in itself to not get a whole life policy. Financial planners and advisors also collect fees. For our part, we definitely suggest investing in low cost index funds in addition to any life insurance plan.
@@whiteboardwealth A friend of mine actually does this i.e. "bank on yourself" method. While I agree, one can diversify their "bucket" approach to wealth accumulation and debt reduction, I typically see insurance agents that hail themselves out as "financial experts" which they are not. I have a Series 7, 65, 63, 3, 9, and 10 as well as life and disability insurance license. When someone has just an insurance license, guess what they're going to suggest for your financial solutions? You guessed it, insurance. My point being, when you're a hammer, everything is a nail.
Cj B can you explain the second paragraph of your comment further. I am not sure about the equity line as collateral for your bonds and stocks ( I don't know) but if you can do so that would be a good option but I think the equity line might be high in interest, Subject to credit approval. On the other hand a loan against your policy sound great no credit check, low interest rate, interest pay back you ect but most policy do not have any loan value. Most RU-vidr talk about building cash value for most policy you can't do nothing with ur cash value. Even if you decide to drop cash in the policy I feel like the many fees out perform your return. I wish the expect will make it make more sense specially for those who understand the literature and have the product but can't see it @Whiteboard Wealth
@@johannemonfiston7484 yes, so basically just building a collateral account of stocks and bonds, mutual funds, ETFs and other liquid instruments. At some point, most broker dealers will allow you to place a “pledged collateral” trait on your taxable investments by which you can advance a line of credit against the securities. The loans are usually LIBOR based and float monthly. They are generally a LOT cheaper than a traditional bank loan, don’t require a closing or origination costs etc and can be paid off or allowed to just sit idle, you have total control in the debt/leverage. Many of my clients that have this arrangement will open the line to buy a car, house, investment property etc and we use the dividends and bond coupons to pay the line of credit off. Hope this helps
@@Celticsfan10134 The money going in was never taxed nor were any of the gains and dividends over all that time. Money you put into life insurace is after tax dollars to begin with.
Warren Buffett has mastered what patience looks like. He has stuck to the markets, having a long term view on the markets. This is what I'm struggling to do, trying to learn how to not react to market news about inflation and all. I have currently set aside about $553k to put in the market now that prices are down. Any ideas?
I agree. I have pulled in more than $435k since 2020 through my advisor. It pays off more in the long run to just pick quality stocks and ride with those stocks.
@@shannonsally455 My Financial adviser is ‘’JULIE ANNE HOOVER’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
@@Justinmeyer1000 Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
VTI vanguard total stock market EFT VOO vanguards Fortune 500 EFT SCHD U.S. dividend equity. I like them all. The Three ETFs will give you enough exposure to the markets also they will generate dividends that can be compounded over time, With super low fees and takes away all the headaches of trading specific stocks.
Productivity never happens by chance; it is always the result of careful preparation, dedication, and consistency. I thank God for my advisor, Mr Yuval Eric Brokman; with his assistance, I am now financially solid, earning between $10,000 and $25,000 every week.
I recently inherited almost $500k. I REALLY need to make this money work for me, and not just disappear over time. All roads have pointed to the equity market of some sort which is a good idea buh where else should I put money besides the equity/stock market?
Just because there are opportunities in the market does not mean you should dive in headfirst. Always look out for proper market analysis or pointers or alternatively seek guidance from market strategists
A lot of folks downplay the role of advisors until being burnt by their own emotions. I needed a good boost to stay afloat, hence I engaged the services of a true market strategist to help rejuvenate my $800k portfolio and boost performance and returns by 90% in a little over four years.
this is huge! mind if I look up the advisor that guides you please? i only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future
Nicole Desiree Simon is her name. She is regarded as a genius in her area and works for Empower Financial Services. By looking her up online, you can quickly verify her level of experience. She is well knowledgeable about financial markets.>
Thank you for this tip, I must say, Nicole appears to be quite knowledgeable. After coming across her web page, I went through her resume and I must say, it was quite impressive. I reached out and scheduled a call
As someone who WAS ACTUALLY LICENSED for Life, Accident and Health Insurance, I can tell you that Whole Life is a TERRIBLE idea. It is FAR BETTER to get a straight 10 or 20 year term life policy, and invest SEPERATELY in an IRA for the same 10-20 year period.
@@HoneySuckle123 pay off your debt, invest in your 401k, and build wealth so that you don't need life insurance. Or you can get guaranteed renewable policies.
Used a loan from my whole life policy to help me put together the down payment for my home and then paid it all back well before the repayment schedule. Cheapest loan I have ever taken out. This is an essential part of a healthy portfolio
@@joonmoy3122 Princess, if I borrow against my house (HELOC) I still get to KEEP my home. If I borrow against my cash value, I still LOSE my cash value. See the difference? Trash value insurance is a scam. Try harder
Insurance cash value is not taxable by the IRS because it is merely a return of overcharged premium funds. Not a legit investment. Not actual stock dividends which are company profits paid to investors, publicly reported and regulated by the SEC.
Don’t let him mislead you😂 A Roth IRA and a 401k w/ company match are the two best retirement tools available. As a life insurance agent myself, there’s a reason we get big commissions for selling you a policy
I sell a lot of life insurance and I can say, these guys are on point. I've actually sent a bunch of my clients who are trying to understand what we do in the simplest terms., Feel free to use these chapters to bounce around to various sections of this powerful video: 0:00 - Introduction: Becoming Your Own Bank with Life Insurance 0:19 - Understanding the Power of Life Insurance Beyond Death Benefits 1:03 - Life Insurance vs. Traditional Retirement Plans: A Financial Comparison 2:18 - How to Use Life Insurance for Wealth Building: Buying Assets 3:14 - The Big Five Benefits of Whole Life Insurance Policies 4:33 - Exploring Guaranteed Returns and Dividend Accumulation 5:14 - Tax-Free Growth and Policy Loans: Leveraging Your Policy 6:48 - The Importance of the Death Benefit and Long-Term Security 7:25 - Using Your Policy for Investments: Real Estate and Business Ventures 10:24 - Conclusion: Maximizing Financial Flexibility and Control
Yes, and the commissions the sales agents makes are the best. If you're disciplined enough with your money to make this work, then you'll be exponentially better off with term policy and a portfolio of mutual funds and dividend paying stocks. No numbers in this video. Shocker.
We’re not sure what you mean by “no numbers in this video’. We can’t have a video go on for 20-30 minutes; viewers don’t want us to go on and on; it’s a starter video for people to run with and do their own research. Commissions? Guess what, you’re paying fees for those etfs and mutual funds, too. You comment about by term and invest the rest…this is certainly the mainstream, consensus view, found on page 1 of every finance blog. If you want to run with that herd, then get after it, and we wish you the best.
@@whiteboardwealth I sell life and other insurance products for a living. I can and don't sell whole unless the client is blindly adamant about it. The commissions both as new business and at each renewal are very high. Much higher than any load fees etc you might experience if you're constantly pulling money out of your investment. There is a reason that a wealth vehicle back by hard numbers is Page 1 - because it works. My guess is your a life agent and somewhere down this sales funnel you call an intro video you'll push a sale on those that don't know any better. Pitch this to an accountant or CFP, with a life insurance agent disclosing his commissions. Run the numbers and you'll see why this just doesn't work.
Great content, really enjoyed that. As somebody who was about to buy a fixed term policy for me and my wife, I’m now going to explore some other options that might benefit us better. Cheers for the advice, new subscriber here.
We face brand-new obstacles every day that have become the norm. We now recognize it as the new normal and must adjust even if we once saw it as a catastrophe. How can we increase our income during this period of adjustment given the present economic challenges the nation faces in 2023? I worked hard to earn my $680,000 in savings, and I cannot let them disappear.
@@richardhudson1243 true, A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
@@maiadazz I've shuffled through a few advisors but “Laurel Dell Sroufe” remains the most resourceful thus far. Her strategy proves profitable, and sustainable both in a bull & bear market. Most likely, her deets can be found on the net, so you can confirm yourself..
The video is generally correct though oversimplified. Most people don't borrow from a permanent life policy to buy other assets, they borrow to cover emergency expenses (borrowing from a life policy can also avoid predatory lending situations and/or a bunch of overdraft or other fees). The insurance company will limit the loan based on policy language and it is generally not a good idea to plan to never pay the loan back. Usually people will at least pay the interest on top of the regular premium payment. Also, the loan almost always directly reduces the death benefit, which was not mentioned (this is because the insurer recovers the loan balance including accrued interest out of the death benefit first and pays the rest as a death benefit). If someone does this as a strategy keep track on a spreadsheet the death benefit, cash value, loan balance, interest, amount made with the alternative asset purchased (if any) and other relevant factors. Some life policies are more set up for loans than others. It pays to shop if this is a strategy someone is considering to find the right product. It is possible to "over-loan" a life policy and it will lapse in an over-loan situation, so spend some effort to understand the loan limits and avoid that kind of complication and any taxes and potential tax penalties due after an over-loan lapse. Also, this strategy doesn't work if the life policy is a modified endowment contract (MEC)), so be careful if it is a single premium life policy or other situations that can make it a MEC. I would tell anyone to only do with a life policy actions/strategies they completely understand. Exotic strategies are for professionals, though I don't consider borrowing from a life policy with understanding to be an exotic strategy. If it is a participating whole life policy, then seriously consider using the entire dividend to purchase paid-up additions. Setting it up this way will grow a death benefit and cash value faster. It may be less or more than the inflation rate at any given time, however, many very modest sized participating whole life policies grow through time to be much larger face amounts and cash value compared to the original base policy alone. The dividend rate of 2-3% mentioned in the video is on top of the guarantee built into the policy, which may be 3-4%, so the net amount of current interest is really the guaranteed rate plus the dividend rate (highest in industry recently is about 6%). Except in periods of extreme inflation this will almost always exceed certificate rates and high-yield account interest rates. Premium for a participating (dividends available) whole life policy may be slightly higher than for a non-participating (no dividend) whole life policy, but over the long haul the participating whole life policy will generally perform much better. Overall, this strategy will work if a person understands what they are doing and pays attention to the life policy over time to avoid surprises.
Generally speaking, we are making video less than 10 minutes long; only so much can be covered. When we made longer form videos, viewers did not have the appetite for them.
@@whiteboardwealth Understandable, just realize RU-vid is full of explanations about things that ultimately don't turn out to work anywhere near how they were described in the video. I've watched more than my share of "passive income/side hustle" videos where, if you truly check out what someone is saying, it is either unworkable or the amount of gain is far lower than a video indicated. Some "investment" videos are also terribly inaccurate. The concept described in the video is valid, just have to take care to avoid some pitfalls. I commented not because it was far off base, but because it was very close to a full and proper explanation of policy loans.
@@johnblocher8431 You brought up good info. The main issue with these policies is how they are structured. You need an agent that knows how to set these up.
Keep hearing "Bank of you" over and over. Let's call it what it is, this "strategy" is using your cash value (that takes time to build unless you put a large initial deposit to establish a cash value amount) as collateral so you can get a loan from the insurance company. They charge you a lower rate because of the collateral, because if something happens where you fail to pay back, they will simply take from your cash value, hence lowering your "forced" savings account. Secondly, the tax free benefit is because it's a insurance product. Just like if I had a term policy for $1M and I die, the $1M payout is tax free to my heirs. Lastly, tax free growth is also not unique, invest using Roth IRA or Roth 401k, all growth or revenue from those investments are tax free.
I bought a whole life 15 years ago. I have a nice cash value that I can use in an emergency, and still have a nice benefit ready if I pass. It's a win win. People who claim its a bad deal don't really understand the true benefits. It's a savings account with insurance.
lol. your insurance pays out only the original stated value of the policy. all the money you sank into it over the years is absorbed by the insurance company. the cash value that you have will have you paying back in interest. why can't you just "borrow from yourself" in your own savings account or in a taxable brokerage?
whole life is a segment of wealth preservation which usually doesn't apply for most people/estates. Most consumers can't afford the product. The value is generational, not just (you) so there's a bigger picture to understand its main purpose. It isn't for everyone, but it is definitely a great option for our personal estate and tax implications. Depending on your Net worth and tax liabilities, it wouldn't make sense for 85% of consumers. @@DocMagoos
I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $450k gains with months, I'm really just confused at this point.
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
Carol Pasol Lewis is the advisor that oversees my portfolio. She's been able to gain some reputation and online recognition with over 3 decades in service, so it shouldn't be a hassle to find basic info.
Down trend? Indexes are at record highs! Never put your eggs in one basket, however Apple has out performed the Market for the last 5 years. If you're going to invest in the stock market, throw 50% into the big seven, and spread the rest in products you have around your home (Sony, Nike, WalMart, etc)
This video ignores the fact that you could just invest your own money in simple indexes and not get ripped off by huge commissions and high fees and then borrow against your own money without the horseshit
This is very misleading I purchased a whole life policy in the 80 s At this point the dividends pay for the premium, I never get any additional cash and the interest on a cash value loan is like 8% and at the end of the year they send me a tax form 1099 to give to my accountant So, as far as I see it, what you say, does not apply to me
Life is weird, beautiful experience when you step back and look at it. Grateful to be here with you all, working with a financial advisor could truly set you up in life. I’m delighted to contact a financial coach Courtney Heath Williams, earlier this year because while others were busy whining about the downturn I was busy cashing out from my investment, finally making over 7 figured for the first quarter of the year.
I understand that tomorrow isn't promised to anyone, but investing today is hard for me now because I have no idea of how and where to invest in. I would be happy if you could share more info on how to connect with your financial coach, as i am ready to go the passive income path?
Courtney Heath Williams. Has transformed my life, he is amazing, and ever since I met him, my life has taken a positive turn because of the passive income through his knowledge. He’s ideas is essential for succeeding against all odds in this area of online commerce. I’m free from debts and am able to save up for retirement.
Having the requisite strategy to pull off profits in this market is one thing and having access to the exclusive market information that isn’t disclosed to the public is another, that’s why the pros are killing it this period..
Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.
As someone considering becoming an insurance agent, I would appreciate sage, kind and candid input on the following: - So where does one go to take the best Ins courses? - Once certified, is there a list of best companies to work for that charge the least per leads? - And offer the best/ reputable return for my clients? - And why does an agent want to know if you have taken out other insurance policies elsewhere?
First, do your own research. A good place to start is to look for the top 20 insurance companies and see when they were founded. For example, Northwestern Mutual was founded in 1857. The company is solid and isn't going anywhere. Second, find out if you will be a captive agent. What that means is if you work for a comaony you have to follow their marketing plan. What that means is you can only sell specific plans to your clients and can't search the market for the cheapest prices. In line with that, see what packages that company makes available to potential clients and ask yourself if you want someone selling this to you. Insurance can be very lucrative. Remember, the insurance companies are as big as the banks if not bigger. They actually insure the banks; look up BAnk Owned Life Insurance (BOLI). My last advice to you is to work on being a saleman and your delivery. Learn the art of conversation. Good luck on this endeavor.
If I'm not too late, - I recommend finding an agency or brokerage hiring new agents that you find yourself most connected to and build a relationship through the company. Most of them offer huge discounts on the course. - Due diligence - Some agents may have accounts with particular clients, limiting them from getting policies from another agent from the same agency. However, there may be the ability to provide an additional supplemental plan to the same existing client not written off on their existing agent
The money you’re taking out is money you put into the cash value… and then they loan YOURE money back to you. Absolutely terrible idea. Buy Term and invest the difference
I admire the financial independence of people, But you can live better if you work a little more. After watching this I think there are people out there, on the extreme, who plan to die early just to be able to retire early. To each their own but to me retirement isn't just about not having to work, it's about having the freedom to do whatever you might reasonably want, such as travel, buying things, enjoying life, etc. I don't think I could retire with less than $3m in income generating investments, maybe $2m at the very minimum. I plan to work until I'm at least 45.
Nobody knows anything, you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving
@@biankabrodeur01 I agree, , I totally agree, I'm 52 and just retired with about 1.2 million in outside retirement funds, no debt and very small dollars in retirement funds compared to my balance of portfolio over the past 3 years to date. tbh, the role of the Fin-advisor can only be overlooked, not denied. just do your research to find a reputable one.
@@geraldantonio3160 Is there any chance you could recommend who you work with? I've wanted to make this switch for a very long time now, but I've been very hesitant about. I'll appreciate any recommendation.
@@marcorocci-ct7kw I absolutely dislike giving such advice because every person's situation is different. However, there are a lot of independent advisors you might look into. "STACIE KRISTAL WEBER" and I have been working together for nearly four years, and she is excellent. You could proceed with her if she satisfies your discretion. I support her.
I completely disagree. Life insurance is not designed as an investment vessel. Just like stocks aren't designed as a life insurance policy. Whole Life being the most expensive form of life insurance is probably the worst for a return on investment, other than the death benefit. Universal life with a guaranteed death benefit is the better option.
Universal Life policies are ticking time bombs where the cost of the insurance go up every year and eventually start eating into the equity of the policy
I think they all have a role to play. Not one is bette than the other. Just the risk appetites of the client. But I would disagree with marketing insurance as a investment vehicle because it definitely is not. Just like Cheetos should not be a meal replacement. Neither should nutritional supplements It has its role in our diet but saying how it can replace our meals is unethical and harmful.
@tunit8946 I can assure you that you either haven’t fully thought this through or you have an incentivized bias. True that it is not an investment vehicle, but is a collateral finance vehicle which most people don’t realize is preferable to investment. Solving for variables is the objective: inflation, finance cost, taxes and creditor protection in particular while compiling capital to position ourselves for any prospective opportunity. These things completely overshadow the need to chase investment return by accepting higher risk. Investment returns exceeding inflation and taxes has become a high hurdle unnecessary to take on risk to overcome; I’d rather instead control those variables rather than the “maybe” of average return or sequence of returns. And NOT with additional variables that universal life introduces: rising cost of insurance as mortality risk increases and interrupted sequence of growth. I see zero purpose for universal life as a capital store and foundation for investment. However, whole life is our family org’s largest capital position followed by real estate and precious metals. Guaranteed growth and liquidity with no future risk of policies going upside down. Can not say that with universal.
You can but you can also be limited as to what you can borrow from your 401k for. And when you borrow from your 401k you pretty much stop the growth aspect until your loan is repaid. When you borrow “against” your cash value in your policy your death benefit is still untouched and everything is still intact unless of course death occurs during the process then things will be adjusted.
Really enjoyed your video, especially as a life insurance professional. However, I had a couple of questions and points. 1) At 4:36 you mention interest-free loans from the carrier. I am not aware of any carriers that offer these could you elaborate more? 2) At 5:26 you talk about tax-free growth. Policies do not have tax-free growth. They have tax-deferred growth and potentially tax-free withdrawals. It is important to be precise in these things. 3) At 6:34 you say that interest rates are lower than you can get at a bank. Could you please provide examples because on a whole life, this is probably not the case? A HELOC would most likely be cheaper and potentially better tax-advantaged. Once again I am a big fan of permanent life insurance, whole life included. But we need to speak about it and use it properly.
Okay: 1.) At 4:36, we could have said "The interest rate for a loan taken out against the cash value of a whole life insurance policy is stated in the policy documents. Additionally, it is possible that the insurance company may pay some or all of the interest on the loan into the cash value of the policy. This means that the policyholder may be reimbursed, indirectly, for the cost of borrowing through the addition of interest to the cash value of the policy."...but we feel good about how things were worded, as is. This video is not meant to read like a policy document. 2.) At 5:36: you are playing with semantics. To say the cash value grows tax-free is completely acceptable within the finance "universe". Everyone knows what is meant here and we don't need to "speak about it and use it properly", as you say...we are using it properly. It is 100% fine to say it grows tax-free, then, it is passed onto beneficiaries without being subject to income tax. 3.) At 6:34, we say "typically much lower", which is true in many cases with many types of loans one can get from a bank, such as personal loans, etc. Can a HELOC be better? Maybe, but with a HELOC the bank can still turn you down and not approve the loan. Or, the appraisal may come in low and you do not have as much equity as you think. Currently, HELOC rates are usually over 4%, and many 4.5% and above. Thanks for watching.
@@whiteboardwealth thanks for your response. I do believe that you need to be more precise in your language. I am still interested in your comment "Additionally, it is possible that the insurance company may pay some or all of the interest on the loan into the cash value of the policy." Please share with me a carrier that does this.
@@keithfriedman8541 We were precise in our language, as we established in our response. And if you are in the insurance business, you can answer your question for yourself, respectfully, of course.
Sir you can get loans against your 401k as well. The interest you pay to yourself. You don't have to do a straight up withdrawal. I agree, you don't have to reduce the value of your future retirement account with WL but the lending option is there. The WL insurance has more flexibility but again the lending options is there. It's definitely better than a pet rock. Also you do get dividends as well. I have gotten 2 and 300 dollar dividends in my 401k. Just saying.
@GrahamStephan would love to see a video 'review' on this concept. Would be after maxing out 401k, Roth's, and having individual brokerages, and utilized as a fixed income, market-agnostic wealth builder. I think the tax free withdrawals (especially before age 59.5) and lower interest rate borrowing (not sure on how much lower than bank interest rates this would be) seems like an interesting benefit (similar to company execs that receive compensation in stock shares and ultimately are able to borrow utilizing collateral as a tax free 'income' driver).
Good info thank you. But you can withdraw money from your Ira any time and have cash in under a week and never get hit with a penalty as long as you only pull money invested. It’s when you withdraw the interest accrued that you get penalized.
Please explain the COI (Cost of Insurance) component of Whole Life policies. If I understand correctly, in insurance, the principal "invested" is less than other investment vehicles due to the COI factor (not including other admin and management fees + commissions). You would need to put alot more free-cash/forced savings into a policy (disregarding insurance coverage, since we are only taking about investment) to generate the same kind of nominal return per dollar invested as a 401k or other similar investment/planning vehicles, is that not so? Please correct me if I'm wrong. Just focusing on the guaranteed percentage return is quite misleading. Eg. 401k @ 2.5%pa for 10k = $250 Insurance @ 3%pa for 10k = (10k - fees - COI) X 3% = 7.5k X 3% = $225 Something like that? Not even factoring initial commission payout. I am from a different country so there might be vast differences I am not aware of but I am assuming the foundational structures are the same in my country as well.
There’s a lot there to comment on, but what we’d point out is this; with a 401k, or any exposure to the stock market, you are exposing yourself to left-tail risk; that’s just the reality. You should check out our “Barbell Investment Strategy” video.
You are correct. If you put in 1000 a month and the COI + everything else is $300 then then only $700 is earning interest. However, If you buy term invest the difference, 1 % annual fee cost is greater over time because that 1% is eating into your compounding money. Not to mention taxes.
@@Youth_Centered_Leadership buying term and investing the difference is basically investment linked policies. I don't agree with traders asking their clients to buy term and invest the difference because most of us don't have the knowledge and/or skillset to effectively invest our money. Better off leaving it to the professionals. Insurance policies can then become a good way to regularly accumulate wealth without having to worry too much about market volatilities. Either way, there is a way to sell/needs to be met. My issue is not with the product but the offering as an investment or a way to get "rich". Insurance is just not a tool for that. In any case, nobody gets rich from investing unless they have a big starting capital (ie. they are already rich). Being able to provide highly sought after services/skills or to capitalise on market shortages is how one becomes rich. Taking risks and providing avenues that bolster economic activities of as many lives as possible makes you rich.
@@chiangweytan5937 that makes sense. The only part I don’t agree with is leaving it to the professionals. I’m sure there are good ones but majority are trash. The last “professional” I trusted costed me around $200,000. I’m better off investing my own money.
You are very correct. These agents are very misleading ,they never tell you that almost half of your monthly premiums goes towards cost of insurance and other administrative costs. Insurance companies are not charity organizations. They are there to make huge profits
This should motivate people to get healthy, but you are not going to get a $100k life insurance policy to borrow from to purchase a house or buy a car. Keep in mind this is a loan, if you don't pay it back, it will just eat up your life insurance policy. Also, the insurance on these policies to borrow is very costly.
Who gets the cash value after you died, your family or the insurance company? Sounds like the cash value is only available when you are a life to use it. I could be wrong.
The cash value goes to your beneficiary, that is the whole entire point of life insurance... the guy that replied is a moron. I would like to add that life insurance is typically not needed after age 65.
your crazy! i mean you can do this with your house hell your credit card but you bring in a ton of volatility plus the IRS is only geared in your favor with a ins. contract ...stop trying to find alt solutions when there is no need to plus you cant anyway
You'll be exposed to losses, tax and unexpected death or disability. Keep an open mind. You can use the cash value to buy stock when the market drops, and your cash-value is guaranteed here so can grow even when the market drops, which it will!
you can get the loan, but the payments are structured...meaning that you have to make monthly payments as determined by the lending institution. With a policy loan they are unstructured. You can decide when and how much to pay off, if at all. Interest will accrue, but can be offset by the interest your cash value earns. You are not taking money out of your account: you are collateralizing it. For example my fixed account dividend interest is 2%. the cost to borrow is 2.9%. my net cost of borrowing is .9%. and if I held my policy for 10 years my net cost to borrow goes down to 2%, essentially net zero.
We bought a whole life policy wrapping in an investment over 20 years ago. Initially, i was paying a low monthly fee $47 because of my age. $15 goes into the policy and $32 goes into the investment. After a few years we met our surrounder value of $15k, what we paid into it. I then took some of my surrender value out as cash and left about 5k in the policy. Now my $5k surrender value, that is also invested, pays for my life insurance, and i haven't paid a dime for the policy for over 10 years. I monitor the value to make sure the investment is still working for me and so far its maintained ita value.
When you die, they keep the cash value when it exceeds the death benefit face value. The money you invest here does not go to your heirs. The insurance company gets the interest payments when borrowing from the "bank of you." If you experience hardship and cannot pay the monthly premium, your policy is canceled. This product severely limits cash flow if you put a large percentage of income in it. Sounds like a great deal to me if you're a whole life agent. For long term investing, stick with the stock market. Look at any 20-30 year period of return.
We r not saying to completely stay uninvested in the stock market. When anyone borrowers money they have to pay interest, so what’s your point there? When commercial banks lend to you, they also borrower themselves and make interest payments, they lend long and borrow short…so we fail to see your point here.
@@whiteboardwealth there are many financial vehicles with better ROI, less risk, and more flexible cash flow. The growth is comparable to a high yield savings account. The death benefit costs 15X more than term life. Then they keep your cash value upon death. A 401k or IRA pays out to a beneficiary upon death. As long as clients understand those points, they are free to do as they wish with their money. It's rarely sold using that plain and simple language though.
yeah like total bullshit from the start! how you going to borrow money from yourself like that and keep earning more money from the bank or loaner? that is the dumbest thing ever! your stupid to think that the money you borrow isn't really coming from you instead of the bank! yes that is your money that your putting in already just to take it out as a loan! that is not the banks money your using! that's why you pay more for that policy! your paying more and taking out your own money and paying back with interest to the bank! you see this is a scam! and only a fool would fall for it! all 100% banks by nature are greedy as fuk! so think for a sec that there making you any real money out of the goodness of there hearts you must be the dumbest of people on the planet! this why when you go to one of these places they want to make sure your in good health! so they know that they would make back all there money with a mountain of interest from you! you that's right your spend the next 40 to 70 years of your life feeding that policy! you think the price is small but it adds especially for that long time! this why they don't tax you because your pretty much just getting a refund there you didn't really earn any extra income! even this guy who made this video is getting paid commissions from you idiots! so do your homework or die an idiot! Life insurance is a Hack and money machine milking you for all your money even beyond your own grave! if your folks need money than tell them to get a job or show them how to make that money! this is pure scam and garbage sht to get into when you may not know the full story or what they don't tell you!
how you going to borrow money from yourself like that and keep earning more money from the bank or loaner? that is the dumbest thing ever! your stupid to think that the money you borrow isn't really coming from you instead of the bank! yes that is your money that your putting in already just to take it out as a loan! that is not the banks money your using! that's why you pay more for that policy! your paying more and taking out your own money and paying back with interest to the bank! you see this is a scam! and only a fool would fall for it! all 100% banks by nature are greedy as fuk! so think for a sec that there making you any real money out of the goodness of there hearts you must be the dumbest of people on the planet! this why when you go to one of these places they want to make sure your in good health! so they know that they would make back all there money with a mountain of interest from you! you that's right your spend the next 40 to 70 years of your life feeding that policy! you think the price is small but it adds especially for that long time! this why they don't tax you because your pretty much just getting a refund there you didn't really earn any extra income! even this guy who made this video is getting paid commissions from you idiots! so do your homework or die an idiot!
Deceive insurance. Insurance companies are not investment companies. Look for a term insurance and buy the difference. You borrow your own money and pay interest for it while your coverage decrease. People get educated .
The 4o1k is the same thing, you can borrow from it and there is no penalty to borrow your own money. Yea you py interest on it but the interest goes back to you when you paying back the loan. So you borrow the money and you pay back the loan with interest to your self.
When you take money out of the 401K you interrupt the compounding. The clock only STARTS up when you pay back the loan. You are paying interest but the money you borrowed is not participating in the growth of your account. It's sitting on the sidelines.
"... contractually guaranteed returns... , around 3%...". The returns of investing in, for example, an S&P 500 index fund on the stock market are over 10% per annum averaged out over the last 40 years. The only people who really make a good living out of Whole Life Insurance are the insurance companies, and those they are paying comminssion to. Not the person paying the premiums, who might not realize they are actually beng fleeced.
I am a private insurance broker in the state of Florida. Specifically the Tampa bay area. If you are still interested in purchasing and IUL I can get you one by the end of the week.
Let’s add the missing disclaimer for the Big Five. (1) Guaranteed returns- you must wait many years for this to take effect. (2) Dividend Accumulation. This is a plus, but doesn’t differentiate WL from investing. (3) Tax free growth. Also takes years. I have a 7 year WL policy. I asked about the surrender fee. ZERO taxable gain in 7 years. (4) Policy loans. You can borrow from yourself at 8% rate. Compare that to withdrawal of principal (NOT earnings) from a Roth.
100% hopefully we didn’t present this as a “get rich quick” opportunity. And hopefully we were clear that one must pay interest; we said as much in the video. It’s just those interest rates tend to be lower when compared to many bank load products.
@@whiteboardwealth It's certainly not. Also, it takes forever to even build cash value in the first place. Why would someone do this and not simply an annuity? Esp w/ a lump sum of cash. A paid-up annuity pays you like farmland--over and over in perpetuity.
@@wizzopchannel I think Nathan 's point is that he didn't do a thorough enough job on the cons of doing this. Technically both an annuity and any kind life insurance are all annuities. But I know what Nathan means here.
@@Nathan-is7lp The main thing is how they are structured. That's the big issue with trying to set up a CV policy. You need an agent that knows how to do this. Thankfully, I had CV available from the very first month.
Im so confused. If it doesnt cost anything why do i have to make a month payment? Im loosing money in that payment? Yes some of it goes to my cash value but why cant i just put a lump sum of the policy value and not pay anything? I kind of dont get it plus after payments is my rate of return and divident payments gonna be greater than what im paying the insurance company every month? I also dont like the fact its a rate im force to pay could i freeze payments when i like say i dont have the money to pay a certain month. I have SO many questions. This sounds like a good idea but you kind of lost me when you said i had to PAY something when its suppose to be "the bank of me".
Taking out a loan against your life insurance would mean you incur interest expense so you need to compare that with the charges in an IRA if you dont return the money to the IRA. Also is there any sort of match to a Life Insurance plan like employers do with 401ks that can add instant additional value to your dollars? You should also compare adding the same dollars to a bank account and just taking it back out for a fair comparison and not use the unrealistic 8% return that financial advisor scam artists use when markets are actually much more volatile
Whole life is the most expensive insurance you can buy...also what is the loan rate? Most banks have pretty good loan rates when insurance cos charge 5 to 7 percent ...
OK your interest is 5%, but your still making unbroken dividends off that money you're using, say at 3-4% and its not taxed you still make out over the person that doubles up the payment
@@illwill8541 "Dividends" in a whole life policy, as defined by the IRS, are direct overpayments by consumer resulting in a refund. Hence, it's not really a dividend.
You can take a loan on your 401k instead of withdrawing. I'm confused why you only said withdraw from it. If you only "make payments on what you use" aren't you using that money when you buy an investment? So why would you borrow more than the cost of the investment? More questions coming. This video is much more informative than others I've seen.
how you going to borrow money from yourself like that and keep earning more money from the bank or loaner? that is the dumbest thing ever! your stupid to think that the money you borrow isn't really coming from you instead of the bank! yes that is your money that your putting in already just to take it out as a loan! that is not the banks money your using! that's why you pay more for that policy! your paying more and taking out your own money and paying back with interest to the bank! you see this is a scam! and only a fool would fall for it! all 100% banks by nature are greedy as fuk! so think for a sec that there making you any real money out of the goodness of there hearts you must be the dumbest of people on the planet! this why when you go to one of these places they want to make sure your in good health! so they know that they would make back all there money with a mountain of interest from you! you that's right your spend the next 40 to 70 years of your life feeding that policy! you think the price is small but it adds especially for that long time! this why they don't tax you because your pretty much just getting a refund there you didn't really earn any extra income! even this guy who made this video is getting paid commissions from you idiots! so do your homework or die an idiot!
If you don’t pay back that loan from a 401k in a prescribed time period there are fines and penalties for doing so. That doesn’t happen with whole life insurance policies.
Whole Life enables you to leave an estate even if you haven’t accumulated any wealth to speak of. It forces you to save money. If your policy is paid up, or even close to paid up, you can convert it to an income stream and or make a needed major purchase.
@@Dan16673 he meant in terms of return on investment generally and to be careful on the policy you pick if you utilize the policy right and do your due diligence, it is definitely not a scam. It just tales alot of time of putting in money and even better if you have a large amount to start with when you open it. If you are looking for high returns in the near future than whole life insurance is not what you should be looking at.
Perm life insurance is almost always a rip off. Don't buy it except in very limited circumstances. This idea sounds good in abstract. If you try to do this in real life, you will pay massive fees just to have the policy, if you take out a loan you will pay interest to use your own money, and if you don't pay back the loan, the loan becomes taxable income. Which unless you have very little income is probably much higher than capital gains tax rate. Life insurance exists to protect your family from your premature death. That's it. It is not an investment vehicle. Using it as such is a great way to give a ton of money to the insurance company for very little if any benefit.
We appreciate the thoughtful reply. Certainly, the point of view that you are expressing here is definitely within the mainstream when you consider what most financial advisors recommend it to their clients. Whether or not it is objectively true or being within the mainstream is a good idea, it’s up to each individual
Dividends in a life insurance policy is usually an overpayment The company has charged you too much for the policy and now they're giving you your money back unlike in a stock purchase with a dividend is exactly where the company made money and they're paying you profit.
Completely incorrect way to frame it: “has charged you too much”; you are charged the going market rate at the time. The fact that the dividends are classified as a return of excess premium is a feature and not a bug, because of the favorable tax treatment. First, you should understand mutual life insurance companies are owned by their policyholders. Policyholder premiums are calculated to cover operating expenses, claims, and unforeseen costs. If there are surplus profits at the end of the fiscal year, a dividend is declared and is split between policyholders with participating whole life insurance policies. So you are not “charged too much”. That is simply misleading.
@@whiteboardwealth The only reason the IRS (fed gov) doesn't tax something is because they could not classify it as income or an actual dividend. If they could define it that way, the would have. This isn't the way it is to give life insurance policy holders a tax break. They just can't define it as actual income.
I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Mrs Katherine Flores.
Loved the simplicity of this and would like to know if you're working with agents and the way you get leads. I gained a bunch of clients using this with YFB a while back, and I think you're leaving out one crucial thing that would perk up ears even more, esp now that the holiday debt is looming - I wud definitely include paying off higher interest debt with a lower int loan from your WL policy. IMO, more people will find that more credible and immediate than another "Get Rich" approach. Wud love to chat further.
Yep I just reviewed one guys portfolio An agent got him to use the loan facility on one plan for home repairs and the following month he got him to open another Whole of life insurance Dumber and dumber - there’s still a huge market for insurance salesman 😂
This video did not talk about investment options or management fees. I can’t help but wonder why. The rest of the “perks” can be found in other products.
This advice makes absolutely no sense. Why aren't you explaining all the pitfalls of buying this type of policy. Such as 1. A 3% interest rate is very low compared to historical tax free bonds. 2. Dividends only accumulate because the insurance company overcharged you in premium anyway and is simply a refund. 3. The reason it's tax free growth is because you already paid taxes on the money going into the premiums. And, by the way, if by chance (Extremely Unlikely) you cash out the policy and receive more money than paid in premiums the overage IS taxable. 4. Taking out a policy loan and paying a company to use your own money at 8% is rediculous!!! Also, how long does it take to build up any substancial amount of cash value? 5. Death benefit IS the reason for buying life insurance. 3 reasons not to do this: 1. Low rate of return. 2. You must borrow your own money at a much higher interest rate than being paid on the cash value. 3. You lose ALL of the cash value upon death and if there's an outstanding loan it is SUBTRACTED from the death benefit. The only winner in this is the life insurance company and the agent selling this type of policy. When you pass away, cash value typically reverts to the life insurance company. Your beneficiaries receive the policy's death benefit amount, minus any loans and withdrawals of cash value you made.Dec 20, 2022 Take out a loan against the cash value You can borrow against the cash value of a permanent life insurance policy. Your loan amount accrues interest until it’s paid back in full. The interest on a policy loan may be fixed or a variable rate that’s calculated by the insurer based on current market rates. State law often dictates the maximum policy loan interest rate. For example: California lets insurance companies charge a maximum fixed rate of up to 8% a year. Florida allows up to 8% for a maximum fixed rate. New York allows insurers to charge up to 7.4% interest on a fixed loan and up to 8% on policies with adjustable rates. Texas law says the maximum fixed rate can’t exceed 10% a year. Texas allows up to 15% for policies with an adjustable maximum interest rate. If you don’t repay the loan amount and you pass away, the insurance company subtracts the outstanding loan balance (including interest) from the life insurance payout to your beneficiaries. Some policyholders choose to use their cash value this way and intend for their beneficiaries to get a reduced payout. Withdraw funds from cash value It’s also possible to take withdrawals from your policy. If the amount you withdraw includes investment gains, often referred to as the part “above basis,” that portion is taxable. As with taking a policy loan, making a withdrawal reduces the life insurance payout to your beneficiaries later. Surrender the policy for cash Surrendering an insurance policy means you’re canceling the coverage. When you surrender a policy, you can get back the cash value minus any surrender charge. The insurance company also subtracts any unpaid premiums or outstanding loan balance. Still, getting some money back is better than simply walking away from the policy empty-handed if you no longer want it. If you withdraw cash value or take the surrender value and terminate the policy, you can be taxed on the portion of the money that came from interest or investment gains
The “advice” you speak about is not “advice”, this is a RU-vid video intended to present information for people to ponder and consider. While we really appreciate all the feedback we get, and we never delete comments, there is just too much there in your comments to respond to here-much of what you said has been said already in this comment thread and responded too. And again, the only winner from these policy’s is NOT just the agent or insurance companies…and we are not an insurance agent selling anything here, so we have no dog in the fight.
Please don't listen to that guy. You should never use life insurance as an investment options and there's a better way to do that without having to borrow the keyword is borrowed your own money.
@@snake8473 Listen man, we appreciate any feedback, and we don't delete any comments or criticism, but this is the 3rd comment you are making on this video, and you are starting to sound like a troll. We encourage any of our viewers to fact check all of our work and do their own research; we stand by every second of this video.
@@whiteboardwealth did you tell your viewers in this video that interest rate on life insurance policy is as twice more higher than from any other bank, and did you tell your viewers how many years you need to keep paying your premiums, just to be even on the policy?? You have no idea what’re you talking about.
@@NellyMiha05 "...twice more higher than from any other bank." Come on now; "...tell your viewers how many years you need to keep paying your premiums, just to be even on the policy"...huh? If you mean you need to spend time to build up a cash value, that is true...hopefully our viewers understand that this is not the place for a "get rich quick" solution.
Does the interest you pay just go back to you and your life insurance value? Also, does that interest you pay add to the cash value of the life insurance plan?
Hi! I'm curious about the taking a loan against your policy terms; do you pay interest on those loans and if so, how do rates compare vs a mortage for example, Thank you
This can depend on the life insurance company, but generally they are lower than a personal loan or credit card, but can exceed a mortgage, depending on where mortgage rates happen to be at the time.
It's best to buy a life insurance policy designed for this type of strategy...for example..when your policy reaches year 10 the interest rate to borrow is 1.9% fixed and the fixed rate return is 2% on the borrowed funds. The interest is returned essentially. There's also arbitrage strategies in some policies where you have a higher loan interest rate and potential for index linked returns that could be higher than the borrow rate. Essentially profiting in a return on the money borrowed while deploying it to other assets.
Keep in mine, you are loaning your own money. If you put in $1000, you can only loan up to a $1000. Its not like the insurance company is loaning you their money or other people's money. In other words, you are paying interest on your own money. lol Good deal right?...No its not.
1:52 when you invest in a 401k or IRa you are investing for the future … so your future self will have something that grows overtime … the stock market out performs whole life insurance scams …
No monthly payments on a loan from the cash value of the policy? Does the balance that earns interest decrease the amount of the loan pulled out of the policy or remain the same?
LONG STANDING ADVISOR: This is horribly misleading advice (sales pitch) to sell high commission products. There are only a few applications in which whole life makes sense. In my forty years I've only sold a handful for people need to transfer wealth to pay estate planning taxes, and that was years ago when far more people were subject to estate planning taxes. 1) The best insurance is the type you never use - only buy life insurance if you need it, like a young family starting out and children and stay at home spouses. This of life insurance as an "instant estate" of tax free wealth that can replace the income that the income earner would have earned over a certain period. 2) Then only buy as much as need, starting with from your employer plan, then supplement it with your own privately held term life policy for the period you think you'll need it, 10-20 years. 3) As your assets increase, consider scaling back the death benefit that you may not need (but are paying for). 4) Forget any ideas that "life insurance is an investment" (or a wealth building tool) - because if you analyze how an expensive policy works, esp with the low rates of today on a policy that does not have investment options, there is just no way it's going to perform equal to or better than the numerous completing wealth building methods that are available, (like ROTH IRA's). 5) Do your homework and understand how the various insurance products work.
It’s not a sales pitch because we’re not selling anything. We are not an insurance company or agent. Also, whenever anyone introduces themselves as an expert, that is a red flag. Let your opinions stand in their own. Your comments are thoughtful, outside of that stuff…anyone watching this video or any video should research for themselves.
What route would anyone go if they have $100,000 cash in a high yield savings account, to invest it in to grow at a higher rate or have significant cash flow? Real estate? Index Funds? Life Insurance? Putting a business in an LLC or S Corp ?
So if my bank offered me a 100k life ins. Policy @ $60/month ..is that still a smart investment and then for how long do you need to have the policy before you can borrow off it to help with the purchase of a bussiness?
Skipped over a couple of important points (1) If you surrender the policy for the cash value, you pay tax on the gain in the policy. (2)The cost of the death benefit is determined by your age in most policy's. As you get older, as in over 60. 70 or 80, the cost of the insurance could likely be more than the earnings from the cash value and the amount of premium could be higher than you could afford to pay.
@@whiteboardwealth Including some of the negative with the positive would be beneficial instead of making it out to be completely better than the IRA or other investment options.
We do a special design insurance contract known as ‘debt free for life’ and it’s got early access to cash value and earns interest compounded between 4 and 5 percent the idea is to pay the debts and snowball back the money from the paid off debts back into the policy but at the end of debts paid, you end up with a nest to not have to borrow money from a bank.
