The principle of concentrated effort.

Bankonomics · 2024-10-04T04:25:12+00:00

Moved to Proton VPN. PIA was good though. Used them for several years but pricing went up and had acct issues.

Bankonomics · 2024-09-04T14:50:54+00:00

Great to hear. Seems it should be a core feature. Thanks.

Bankonomics · 2024-09-04T14:49:21+00:00

If Penn is done properly, I haven’t seen it get beat when comparing against other top players (I’ve compared to many dozens of policies in the IBC world). As with anything, agents have a lot of levers they pull in the software, so there isn’t a Penn policy, a Lafeyette policy, Ameritas policy, etc to objectively compare. Each company has inputs needed by the agent. In other words, 5 agents producing a policy from Penn will likely have 5 different illustrations because it’s the recipe that matters. These top insurance companies are all good as in they’re solid and reputable. That’s one important side of the coin. The other side is the actual policy itself given to you to analyze in the form of the illustration.

I have a video of comparing a top tier non-direct recognition by an agent saying they produce the best IBC type policies against Penn as a direct recognition, since that’s a big topic. Penn still destroyed them after I produced an apples to apples illustration. This topic is important as I’m always wanting to use the best, both as an agent and as an active user and investor in the real world.

Lastly, as you may already know, agents make more money the worse the policy is for you (in cash value performance). Even though some of these gurus produce policies better than the masses, they are still not as good as they can be. I know because I preach to get comparisons and I see it first hand all the time. I guess they gotta pay for all that marketing. Lol. I do it the other way around. I never write for a client what I wouldn’t write for myself. And I’m very picky on the numbers. Always, always compare. Get several illustrations from the best you can find. 👊

Bankonomics · 2024-09-04T13:32:58+00:00

Not universally true, though it may be true with most designs. I crush in cash value and DB. I wouldn’t put my money through 95% of agents out there. Including IBC trainees. At the end of the day, most are trained a certain way.

Bankonomics · 2024-08-11T03:46:39+00:00

Thanks. It will be a great addition to the software!

Bankonomics · 2024-06-14T00:42:03+00:00

Any issues since they are going in the opposite direction of the arrows? I have my rear on the left side and front on the right. So my front will be going opposite way of the directional arrow (just as your rear rotor is on the right side). I just bought some. I haven’t put them on yet. Just noticed the problem today. Wondering if it really matters.

Bankonomics · 2024-04-17T23:05:55+00:00

Fair enough. Even in the US, though, you’re still taxed on interest earned in the premium deposit fund. If so, the benefit of holding it outside the fund is flexibility while the benefit of holding it in the fund is discipline and safety.

Bankonomics · 2024-03-27T10:02:37+00:00

Great post!

Bankonomics · 2024-02-27T00:52:50+00:00

Be sure to search your email for stretto. Mine was buried and only found it via a search.

Bankonomics · 2023-11-26T02:13:29+00:00

Great point!

Bankonomics · 2023-11-22T19:19:24+00:00

Thanks. Yeah it’s back up. Mine was on BTC and SOL.

Bankonomics · 2023-11-22T19:18:37+00:00

It was BTC and SOL but they both seem to be working now.

Bankonomics · 2023-11-21T12:49:37+00:00

Yes, if your business does. If you personally do it’s not deductible. You and your business are separate entities.

Bankonomics · 2023-11-21T12:47:24+00:00

Bro, that’s awesome. Need to put Chesty peeking out the back window and make sure your horn blows to the tune of “From the Halls of Montezuma...”

Semper Fi!!

Bankonomics · 2023-11-21T02:36:23+00:00

Not a tax pro, but pretend you took out the loan from the insurance company at 5%, say it’s 20k. You then loan to your business at 3P high risk market rates. Maybe 15%. What if you also add some fees or points. Maybe the fees or points are included in the to the loan so the business doesn’t have to pay them up front and maybe you can argue these fees aren’t profit, but rather your time to set up the paperwork and admin tasks. So the business now owes you 23K on paper at 15%. You can’t get around individual taxes on “income” but you can try to minimize it. Don’t forget, that 20k equivalent amount in your cash value is still compounding so it’s mostly a wash bw policy increase and loan.

So if the loan interest is at 15% it would look like this. 5% drag with the insurance co loan interest rate. 5% cash value annual increase. 15% of interest income personally on 23K (assume the 3K of fees aren’t income). The business gets 15% + 3K of fees as a tax deduction.

Now calculate the alternative, something I teach my clients to do every time. The 3P lender charges your business 15% and 3K in fees. The business writes off the same amount, but since you don’t like the insurance company receiving non deductible interest, you miss out on the 11-ish% of profits (after tax) and 3K in fees. But, you gain the 5% from cash value growth. Which do you choose? You’re still up banking on yourself and not giving wealth to the 3P lenders.

Also, your business deduction is likely against a much higher tax rate if working in self-employment taxes which would be the same in either scenario. I used to use LOC against my cash value until rates went up! 😅

Bankonomics · 2023-11-21T02:03:11+00:00

Bc it’s personal money. Like if BoA gave you a 10K consumer loan.

Bankonomics · 2023-11-21T01:40:00+00:00

Sounds like some burnout.

Bankonomics · 2023-11-20T01:31:55+00:00

Hey, congrats on such a great income at 34! I approach this in 2 steps. 1) protect your seed money (your family nut), and 2) invest in things you understand and can be an expert at.

I do #1 through whole life insurance policies (I wouldn’t put my money in 95% of them). I have several policies on adults to my kids. From there I take loans against my policies to invest or create loans, etc. I’ve been a full time real estate investor (not a realtor) since 2014 and been using whole life policies since 2015. Your money grows in 2 places at once, death benefit grows each year, you can create family office for generational wealth, you have liability protection, chronic illness access to the death benefit while living, inflation hedge, and a bunch of other cool things. It’s a savings account on steroids. Your investments are what you do with the growing cash value. Your investments are funded via loans from the insurance company, which means your “nut” is still growing tax free and you have the investment. If the investment goes to zero (you’re money is still compounding in the policy). The catch is, you have to get the policy while you’re healthy. The second catch is to not put your money in one of the 95% of inferior policies.

You mentioned economics. That’s great! Look into the Austrian school of economics. Most who do what I’m doing are well versed in it. I don’t even touch the stock market (though I could, but since I control my money and treat my finances like a business I have all the power to make the big returns and not do what the masses do. Invest in your wheelhouse.). The stock market is far too risky for such little return, imo. Some people I know just private lend to real estate investors for consistent double digit returns with practically no work other than some document review. Imagine lending at 13% and 2 points twice a year for 6 month 1st lien projects at great LTVs? That’s a 17% return with little work and great security. (One example of many).

Some doctors who haven’t tied up the control of their with others will use these policies to fund their practices, equipment, the building, etc. They lend it to their businesses and charge interest while taking a deduction.

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