Tag: IBC

Employing the Infinite Banking Concept

submitted by jwithrow.infinite banking concept

Yesterday we examined the merits of the Infinite Banking Concept. Today let’s look at some IBC strategies to build capital and mitigate inflation.

If you combine the Infinite Banking Concept with a fundamental asset allocation model you have the makings of your own personal central bank. If one were so inclined, just like a central bank, one could establish tangible reserve requirements and use the policy’s ever-growing capital base to purchase tangible assets. Your job as Chairman would be to continuously acquire assets based on your allocation model as your central bank’s capital base grew in size to maintain your specified reserve ratios.

The possibilities with this strategy are endless!

The hardest part of employing the Infinite Banking Concept is being patient enough to capitalize your policy over the first several years until the policy becomes self-sustaining.

Imagine a world in which more people take control over their financial destiny by using the Infinite Banking Concept as an integral part of their financial plan. This strategy has the power to mitigate the boom-bust cycles created by the Federal Reserve and the fractional-reserve banks because people employing the IBC strategy would not have much need for traditional bank financing.

The power of the Infinite Banking Concept can truly be unlocked if families were to implement this strategy generationally. For example: what if parents were to set up IBC policies for their children as soon as they were born?

The IBC policy would have the opportunity to grow for twenty years or more, and the next generation would automatically have a large pool of capital available to them upon their maturation into adult-hood. This pool of capital could be used to finance specialized education or to start a business with no student or bank loan necessary.

The child would also receive a substantial death benefit payment down the road when the parents were to pass on from this world. That death benefit could then be used to set up larger IBC policies for future generations so the family’s pool of capital would continuously grow over subsequent generations. Every single one of your children and grandchildren would have access to a significant pool of capital to help them build self-sufficiency and resiliency.

Talk about an individual revolution!

A generational implementation of IBC in this way could gradually transfer the power of the purse away from governments, central banks, and Wall Street and back into the hands of individuals where it belongs. This would cause the financial sector to shrink tremendously, which would free up capital for more productive purposes across the board.

You see, the financial sector doesn’t really produce much of anything. It is more like the money changers of old in that the financial sector does little more than temporarily warehouse capital and then move it around, siphoning off small fees at every stop along the way. The financial sector certainly plays a very important role in a developed economy, but that role should be much smaller than what it is today.

So how do we know that the IBC strategy will survive the Great Reset? The answer is that we don’t know anything for sure.

But life insurance companies have a built-in inflation hedge as they can charge higher premiums to new customers on an ongoing basis as the currency loses value. Additionally, if the currency were to completely collapse, it is highly likely that life insurance companies would re-value their policies in terms of a new currency or maybe gold (we should be so lucky). Also, if you operate your personal central bank wisely and use your capital to purchase precious metals and other real assets, then you have a currency hedging strategy already in place.

Hopefully this chapter has done the Infinite Banking Concept justice, and you can see why we think it is a powerful tool for individuals disciplined enough to devote the time and resources necessary to capitalize a policy.

The Infinite Banking Concept

submitted by jwithrow.infinite banking concept

Before you can see why we believe so strongly in the Infinite Banking Concept (IBC) you must change the way you think about life insurance. The purpose of structuring an IBC participating whole life insurance policy actually has nothing to do with life insurance itself. Whole life insurance policies, when structured correctly according to the Infinite Banking Concept principles, are powerful vehicles for warehousing capital. This is what we are primarily interested in.

Typical IBC policies are structured such that 40% of the premium paid supports the base policy and 60% of the premium buys additional paid-up insurance. The large amount of premium going to purchase additional paid-up insurance serves to both grow your insurance policy (add to the death benefit) and it builds cash value much more quickly than standard whole life policies.

Your life insurance cash value is simply equity in the policy; it is not physical funds in an account. This gives life insurance cash value advantageous tax and legal treatment and it largely shields the cash value from creditors, plaintiffs, and corrupt government departments.

To illustrate this legal advantage think about what would happen if someone were to win a civil suit against you. The first thing that they would come for would be your bank accounts. The court could then force you to liquidate any investments in a standard brokerage account to pay the plaintiff’s claim and your capital base could be wiped out very quickly.

The court could not make you liquidate your life insurance cash value, however, because it is just equity in the policy. The primary way to access the cash value is to borrow against it and the court cannot force you to do this in the same way the court cannot force you to borrow against your home (domestic cases between spouses may be different as the court may determine one party to have an ownership claim already).

Now the court could enable the plaintiff to take an assignment of the life insurance in the amount necessary to satisfy the claim, but this would only pay out in the event of your death. Meanwhile, your cash value would continue to grow uninhibited and you would still have access to that capital at any time for any reason.

In addition to legal shelter, it would be much more difficult for the government to change the tax laws regarding life insurance cash value than for qualified retirement accounts. Qualified retirement plans (401k, IRA, etc.) are creatures of the tax code – these plans were specifically created within the IRS legal structure.

Life insurance, on the other hand, has been in existence for centuries in some capacity. The first American life insurance company was founded in 1787 and many life insurance companies that are prominent today were founded in the early-to-mid-1800’s. Contrast this with the IRS which was not unleashed on America until 1913.

While it is impossible to eliminate risk in this world, building capital in whole life insurance policies based on the Infinite Banking Concept is a way to mitigate legal risk and IRS risk, especially when compared to qualified retirement plans.

So now that we know our cash value is relatively safe from those who would steal it from us, let us examine the capital building merits of the IBC strategy.

Your cash value grows in two ways: when you pay the premium, and when the life insurance company pays a dividend. Paying premium into the policy guarantees that you will have a specific cash value at specific intervals in time.

Your life insurance agent can run illustrations for you depicting the cash value at the end of each year and this value is contractually guaranteed as long as premiums are paid. The guaranteed cash value illustration enables you to know, to the exact dollar amount, what your minimum cash value will be in a given year. This illustration depicts the cash value established by your premium payments (base+paid-up additions) and the figures assume that a dividend will never be paid.

Your agent can also run non-guaranteed cash value illustrations that estimate cash value based on the assumption that the company will continue to pay dividends at the current schedule. The non-guaranteed cash value illustration depicts the same contractual figures as the guaranteed illustration with the addition of annual dividends based on the current dividend rate. Dividends can add substantially to the cash value of the policy over time.

Whether or not dividends are actually paid out depends upon the company’s annual death benefit costs and investment performance. Mutual life insurance companies pay a dividend every single year unless they are in serious financial trouble and every single policy holder will receive a dividend if one is issued. Dividends are small in the policy’s early years, but can become quite substantial in the policy’s later years.

For example: we have an IBC policy illustration that estimates a dividend in the amount of $1,659 in year 5 of the policy and it estimates a dividend of $21,076 in year 25 of the policy. And just for fun: the dividend estimate is $69,951 in year 40 of the policy.

This same illustration depicts a guaranteed cash value of $17,288 and a non-guaranteed cash value on $17,667 after year one. After year five the guaranteed cash value is $95,936 and the estimated non-guaranteed cash value is $101,192. Year 25 depicts a guaranteed cash value of $804,112 and a non-guaranteed cash value of $1,048,247. And just for fun again: the guaranteed cash value after year 40 is $1,511,993 and the non-guaranteed cash value estimate is $2,662,316.

This illustration is based on an annual premium of $24,000 with 40% of that supporting the base policy and 60% buying additional paid-up insurance.

The point is you can generate an internal rate of return within the policy itself. This rate of return will be conservative and it will not wow you, but guess what? There is absolutely no risk to principal
whatsoever. This is huge!

This strategy allows you to know exactly how much capital you will have available to you at any particular point in the future so long as you keep making the premium payments. Once the policy is big enough you can also take policy loans to make the premium payments if need be. In fact, capitalizing a policy for as little as five or six years could be enough for policy loans to perpetually support the premium going forward.

The primary risk with this strategy is that the life insurance company could fail at some point in the future. This rarely happens, however, because mutual life insurance companies are very conservative organizations, unlike the Wall Street firms. The prominent mutual life insurance companies in operation today have survived the Great Depression as well as the crash of 2008. And they didn’t need any bail-outs or subsidies, either.

One reason for their strong financial history is that mutual whole life companies do not have shareholders. Accordingly, these companies do not need to resort to excessive risk taking to try to constantly pump up their stock price. Instead, the policy holders own the company and they are quite happy with a conservative risk appetite.

Additionally, the stronger life insurance companies in the industry have historically done a good job of taking over a failing company on the rare occasion when this has happened. In this scenario, the stronger life insurance company assumes all outstanding contracts of the failed company so as to maintain the conservative reputation of the industry.

Hopefully the power of the Infinite Banking Concept is starting to become apparent to you. Tomorrow we will look at some ideas on how to employ the IBC strategy as well as how you can mitigate the inflation risk inherent in standard life insurance products.

Shedding the Institutional Mindset

submitted by jwithrow.empowerment-e

Journal of a Wayward Philosopher
Shedding the Institutional Mindset

November 19, 2014
Hot Springs, VA

The S&P opened the day at $2,047. Gold is up to $1,197. Oil bounced back above $75. Bitcoin is still hanging around $379, and the 10-year Treasury rate is 2.36% today.

Yesterday we examined some of the prominent macroeconomic trends and we reasoned that, from the American perspective, the world will be a much different place eighteen years from now. We pondered: how can we help prepare a child growing up today for adulthood in a world that will not resemble the one that currently exists?

To answer this question we must first examine the script as it exists for the average American child coming up today. For this I will defer to one of my favorite analysts, Paul Rosenberg over at Casey Research, who summed it up rather succinctly:

Do well in school (an institution).

Rebel with music from the entertainment corps (institutions).

Wear the new shoes/jeans/etc. with the best corporate logos (institutions).

Get a university degree (from an institution).

Take student loans to do so (from an institution).

Take a job at a big firm with great benefits (interacting institutions).

Get a home loan (from an institution).

Build a 401(k) (more institutions).

Believe in democracy (a multilayered institution).

Be a good citizen and vote (same as above).

Send your children to daycare, then school (institutions).

Buy brand-named goods (from other mega-corp institutions).

Watch the best in entertainment (corporate institutions).

Conduct your relationships on Facebook (a vampire institution).

Trust in Social Security and Medicare (Ponzi institutions).

I read this list and have to nod my head in agreement – this is pretty much the script that has been sold to every individual in American society for quite some time now. The script has worked out fairly well for people over the past seventy years but I must ask the question: is it still viable? After all, past success is not indicative of future results.

I am skeptical. To be frank, I am not so sure this script will even work out well for the Baby Boomer generation (though it has up to this point). Time will tell.

So, getting back to the original question from yesterday, how best to prepare Madison for a changing world? Logically the first step would be to change the script. Maybe even set fire to it.

But to change the script first requires a change in mindset.

The current script represents the institutional model which operates under the assumption that individuals are inferior, weak, and ignorant; that they are objects to be molded and formed in the institutionalized image. The institutional model suggests that each individual should spend most of their time working as a “productive” member of the institution. While rarely stated explicitly, the institutional model implies that each individual is subordinate to the institution. Those who subscribe to the institutional model tend to develop the mindset that everyone must participate. Everyone must play.

To walk away from this institutional mindset requires courage but a beautiful thing happens when you do – the world opens up and becomes more free. Then you discover your boundless potential and begin to trust yourself implicitly. And then you can start to envision a better way to prepare little Maddie for adulthood.

Instead of treating birth as an emergency and rushing off to the hospital you can do a homebirth. Instead of rushing her off to school to have indoctrination forced on her by the collectivists and bureaucrats you can develop a comprehensive, practical, and liberating homeschool curriculum. Instead of exposing her to mindless entertainment you can find wholesome hobbies that the entire family can do together. Instead of pushing her to mindlessly rush off to college you can capitalize an IBC insurance policy for her and, when the time comes, tell her to follow her passion. Instead of telling her she must get a corporate job with good benefits to be successful you can help her devise a plan to build a career pursuing her own interests. Instead of telling her she must be a good citizen and vote within a corrupt system you can tell her to “be the change you would like to see”. Instead of ignoring financial education and hoping Social Security will be there for her in the year 2079 you can teach her the merits of asset allocation so she will be financially independent forever. Instead of instilling within her the institutional mindset you can help her remember that she is a sacred individual and nothing less than an eternal spirit of humanity.

The possibilities are endless!

Then it doesn’t matter what the world looks like in the future because she will be prepared to thrive physically, financially, emotionally, and spiritually no matter what.

More to come,
Signature

 

 

 

 

 

Joe Withrow
Wayward Philosopher

For more of Joe’s thoughts on the “Great Reset” and regaining individual sovereignty please read “The Individual is Rising” which is available at http://www.theindividualisrising.com/. The book is also available on Amazon in both paperback and Kindle editions.

Asset Allocation

submitted by jwithrow.asset-allocation

Asset allocation is a necessary tool for saving money and building capital within a fiat monetary system. Within a fiat system, the purchasing power of your currency is gradually inflated away and the value of various asset classes can fluctuate rapidly based on central bank monetary policy. Thus, it is important to have a principled yet flexible asset allocation model in place.

The concept of asset allocation is to allot a percentage of your capital to various asset classes and to maintain each allocation ratio until you deem it necessary to adjust your model. For example, a basic asset allocation model could consist of 25% cash, 25% precious metals, 25% real estate, and 25% stocks. You would then allocate your income to each asset class accordingly.

The beauty of this strategy is that you cannot be wiped out by any wild swings in the market and you will always have cash on hand with which to purchase assets when they go on sale (when the market tanks). Of course you can always add additional asset classes into your model such as bonds or bitcoin or cattle depending upon your outlook and you may need to adjust your percentages based on new analysis from time to time as well.

The Infinite Banking insurance strategy that we talk so much about here at Zenconomics and in our book works perfectly to house much of your cash allocation. An IBC policy serves to compound returns on your cash while it sits idle waiting to be put to use without sacrificing any liquidity whatsoever.

As for your precious metals allocation, you can purchase gold and silver bullion from any local coin shop or from reputable dealers online or you can purchase through companies like Hard Assets Alliance which will facilitate fully allocated domestic or international storage for you.

Of course to follow an asset allocation model you will need to save a large percentage of your income. I think 50% is a good benchmark. 75% savings is preferred. Very few people have the discipline to pull this off but those who do never have to worry about financial problems again.

If maintaining such an asset allocation model for your household sounds extremely tedious and time-consuming that’s because it is. This is the price we must pay for living under a fiat monetary regime. In a sound monetary system we would be able to build capital simply by saving money in a bank account because our money would maintain its purchasing power over time. Instead, saving money in a bank account is a losing strategy so we are all forced to become financial analysts or have our wealth systematically transferred away from us.

IBC – What’s it all about?

by R. Nelson Nash
Author of Becoming Your Own Banker
Article originally published in the October issue of BankNotes

It should be evident to most people that the last 100 years have been very violent in the financial world. Why? What happened to cause all this turbulence?

During this period we have witnessed the bloodiest century of all time. Two World Wars. Endless smaller wars all over the earth. An influenza epidemic after WWI. Nations formed and then self-destructed. New diseases coming into existence. Endless turmoil in the Mid-East. Empires coming apart. Financial euphoria followed by inevitable busts. Unbelievably powerful weapons and weapon systems. Propaganda perpetrated on an unsuspecting public such as man-made global warming. The list could take several pages to itemize them.

So, what’s going on? All of these actions are preceded by thoughts of the people involved at any time and place. Or, maybe it could be best described as lack of thought! It appears to me that people have forgotten how to live. It could be that they never learned how to live in the first place. Maybe it could be because of the way people feel. We seem to have a generation of “touchy-feely” folks that are in places of leadership and they influence the actions of every-day people.

Wars make absolutely no sense, but it is evident that this behavior is a common denominator throughout this time frame. Nothing good came from them. Yet, wars are glorified in the minds of many people. Things like Tom Brokaw’s book, The Greatest Generation. In reality it was a disaster — because of what it did to the minds of the people. They heard lies and came to believe them. Our country had already adopted Socialist ideas a number of years earlier, but this head-long plunge gained tremendous momentum during this period. I was there to witness it as a teenager and have seen it unfold to become the monster that we have today.

The historian, Dr. Clarence B. Carson wrote a masterful book entitled, The World In The Grip Of An Idea back in the 1970’s. He did a great job of explaining how we got into this abominable situation. The book needs to be re-published and Dr. Paul Cleveland and Dr. L. Dwayne Barney are in the process of re-writing it at this time. The world needs this book very much and so I encourage you to get a copy when it becomes available.

From my own perspective, money is the real common denominator in human action. The great Austrian Economist, Ludwig von Mises points out that the business cycle is caused by central banks. They inflate the money supply dramatically and people can’t tell the difference between “real money” and the “counterfeit money” (fiat money has no real basis). They feel that it is real wealth and so they do things that are totally irrational. This creates booms in the economy. In due course of time, reality rears its ugly head, and the bust follows.

This pattern has a long history, but it seems that every generation during the boom years feels that “Yes, those things happened in the past – but, this time it’s different!” This is nothing but hubris in its purest form. It is the “Arrival Syndrome” that I describe in my book, BECOMING YOUR OWN BANKER. It is the worst thing that can happen to the human mind!

Government debt all over the world is huge. But, consumer debt in these nations is approximately equal in volume. Bankers have created a mind-set in people that “you don’t have to save money– just spend, spend, spend! We are going to take care of your financial needs.” A local Credit Union advertises “Get a Legacy Lifestyle Loan from us.” Translated: “If you don’t like your present lifestyle, then get a loan from us so you can live the way you want to today! Don’t worry about having to repay the loan.”
We are bombarded with such stuff every day. If you listen to financial advertising very long then it becomes “hourly!”

Your local, commercial banks are the primary source of inflation. They lend money that doesn’t exist. If anyone else did that they would be put in jail! But, this chicanery has been going on so long that most everyone considers it normal.

In the video, Banking With Life, Dr. Paul Cleveland points out that people confuse money with wealth. Wealth is your productivity, and things that you own. Money is just the medium of exchange that we use to acquire wealth. Creating a pool of money from which to buy wealth is a necessary function in an economy. This pool of money is known as banking! We could not live the way we do today without the concept of banking! It is sovereign! Some party in your life is going to be the banker whether you recognize it or not!

That party should be you! John Donne (1572-1631) gave us the thought, “No man is an island.” Therefore, this Infinite Banking Concept must involve other people in the form of a contractual relationship. The perfect financial instrument to accomplish this has been in existence for over 200 years. It is known as Dividend-paying Whole Life Insurance (Preferably with a Mutual Company – one that is owned by the policy owners). Your medium of exchange must be warehoused somewhere! There are no exceptions!

This is a place that cannot inflate the money supply. This Infinite Banking Concept has been taught through my book, Becoming Your Own Banker and the follow-up book, Building Your Warehouse of Wealth. Further explanation is provided by How Privatized Banking Really Works by Carlos Lara and Robert P. Murphy, PhD.

Through these books and seminars that are taught all over the USA and Canada, there are now thousands of people who will never have to make loans from an institution that inflates the money supply and creates “booms and busts.” You, too, can become your own banker!

Please see the October issue of BankNotes for the original article and others like it.

Maddie Coming Soon

submitted by jwithrow.Maddie

Journal of a Wayward Philosopher
Maddie Coming Soon

October 6, 2014
Hot Springs, VA

The S&P opened at $1,975, gold is down to $1,190, oil is hanging around $88, bitcoin back up slightly to $327, and the 10-year is checking in at 2.44%.  While this wouldn’t be a bad time to pick up an ounce or two of the yellow metal, the 10-year Treasury rate is what’s really worth keeping an eye on.  How long can the Fed keep rates suppressed?  Some say forever; some say until December.  I say “I don’t know”.  Assuming the folks who say forever are wrong, what then happens when rates go up? Some say the Fed can manage the increase in a gradual fashion; some say the poor 10-year Treasury has been cooped up for so long that it will blow through the roof once free of its chains.  I say “I don’t know” again but I tend to think the latter is probably more likely.  And then…

Shifting gears from economic future to family future, wife Rachel is 39.5 weeks pregnant as of today!  Coming soon: a little girl. How exciting!  We shall call her “Maddie”.  With Rachel busy working on her nesting list, I close my eyes and try to catch a glimpse of the future that awaits little Madison.

Look at all those traps.

Heavy metal toxins in infant vaccines? Round-up ready GMO fruits and vegetables?  Ouch.

Government-run public school system designed to feed the administrators and instill collectivist ideals in the children?  Probably best to steer clear.

Skyrocketing college tuition?  Will there even be jobs left in this economy in twenty-some years?

Opening my eyes, I am confident that we have a pretty good plan to help Maddie tackle the college problem: an infinite banking insurance policy paired with a “hands-off” approach.  We can fund a life insurance policy for Madison as soon as she turns two weeks old.  With an annual premium of $3,000 per year, the policy will have a cash value of at least $60,000 by the time Madison reaches adult-hood.  Then we sign the policy over to her and say follow your passion.  Want to travel the world?  Go for it.  Want to start a business?  Here’s your working capital.  Want to go to college?  No need for student loans.

Of course that $60,000 cash value figure is based on today’s purchasing power.  I am confident the insurance company will be able to keep up with inflation via long-term investments and sound actuarial pricing on new policies such that Madison’s policy dividends will keep up with inflation also.  Or maybe the dollar crashes and the insurance industry has to denominate their policies in gold in order to survive.  Wouldn’t that be something!  Then we wouldn’t need to worry about inflation because we would be using REAL money again!

Or maybe this strategy blows up in our face… who knows.  We examine the Infinite Banking Concept (IBC) in more detail in our book “The Individual is Rising” – you can get it here.

So what is college for anyway?  As best I can tell, people go to college to receive a degree that says they went to college.  Then they try to get a job where they can sit behind a desk all day.  That’s pretty much it.  I suspect there was a little more to it years ago (early-to-mid 20th century?) and of course there are some exceptions – especially in the specialized fields like engineering.

Think about it.  What is the first thing people say when they go to a job interview?  “I have a degree in such and such”.  This is supposed to be a strong selling point for the potential employee… but is it really?  What does having a degree actually tell you about someone?  You can probably safely assume that this person has spent a fair amount of time drinking cheap beer.  I don’t know that you can really deduce much else.  Doesn’t everybody have a degree these days?  Doesn’t the government finance ninety-some percent of those degrees?

Doesn’t sound like much of a selling point to me.

We live in a ‘have’ oriented society – we place a premium on ‘having’ things.  A degree, a nice car, a big house, a fancy wardrobe, you name it.  We tend to link our own self-worth to what we ‘have’.  We shouldn’t do that.  Much more important than ‘having’ is ‘doing’.  What are you doing to make your life better?  What are you doing to make your family’s life better?  But wait, there’s something even more important: ‘being’.  What is the nature of your character?  Are you a kind and strong-willed person?  Can others count on you to be honest?  Do you understand that your self-worth is derived from what’s within?  Do you recognize how powerful and wise you truly are?

Having is nice.  Doing is great.  Being is essential.  Focus on the being and everything else will fall into place.  This is the one lesson I hope my daughter learns from me; any other lessons imparted from me to her will be of lesser importance.  I also firmly believe it is a two-way street… I can’t wait to find out what she has to teach me also!

Back to the present: looks like I have some tasks assigned to me on wife’s nesting list.  It is best not to keep her waiting.

Until the morrow,

Signature

 

 

 

 

 

Joe Withrow
Wayward Philosopher

 

For more of Joe’s thoughts on the Great Reset and regaining individual sovereignty please read “The Individual is Rising” which is available at http://www.theindividualisrising.com.  The book is also available on Amazon in both paperback and Kindle editions.

Forget the Interest Rate – It’s the Quantity of Interest That Matters

submitted by jwithrow.Mastering Interest

Financial success is all about understanding and mastering interest. You see, there are only three choices when it comes to financial matters:

  • Pay interest
  • Receive interest
  • Forego interest

That’s it.

All you must do to get ahead financially is to arrange your financial affairs such that more interest is coming in than going out.

It is the quantity of interest that’s important. This concept is not often discussed so most folks focus exclusively on the rate of interest instead.

3.5% for a mortgage? This is a great rate!

2.87% for a vehicle loan? We’ll take two!

.05% on a savings account? Well, we suppose something is better than nothing.

So the average person pays interest for their house and their cars and they forego interest when they buy their groceries and pursue entertainment. The interest that they do receive is negligible in comparison because they offer whatever capital they have leftover after expenses for a pittance.

So what’s the common man to do?

CNBC will say that the stock market is the only way to go.

What they will not tell you is that the stock market is ripe with risk. Getting into the stock market requires you to give up control of your capital and place it 100% at risk. All the while you have the hedge fund high frequency trading machines and the Wall Street insiders chomping at the bit to take your capital from you.

These forces are focused on the stock market every minute of every day, not just during business hours.
If you have the same amount of time and energy as well as access to the same amount of information as the insiders then you may be able to play the stock market and come out ahead in real terms.

We think that it is much more likely that you will only come out ahead in nominal terms at best if you come out ahead at all.

We think it a far better strategy to capitalize an IBC policy and then focus on employing that capital to develop sustainable sources of income.

The IBC policy ensures that your capital is generating a little bit of interest no matter what happens and your employment of that capital can be used to significantly increase the amount of interest coming in.

After all, what good is a 3.5% mortgage if you are not generating at least 3.6% in interest income consistently?

You see, interest rates are not terribly important – it is mastering the control of interest in vs. interest out that is truly the name of the game.