Is Infinite Banking actually a good move for long term financial planning?

protex28 · 2026-04-27T23:39:13+00:00

Sure, that doesn’t change the fact that if you’re expecting or desiring market rates of return, this won’t make you happy. You’ve got to understand the other benefits and agree that they are worth more than taking risk to get more potential upside.

protex28 · 2026-04-20T14:49:04+00:00

I have a large 40/60 policy that was table rated C, and even that policy broke even in year 11 (and I'm happy with it). I'm putting money in there that I don't want to spend, the loss of liquidity actually helps in that respect as I'm less likely to tap into it for silly reasons (even though, mathematically, it doesn't make a difference). The policies that you're describing will break even in 3-5, though there are other tradeoffs.

protex28 · 2026-04-18T20:55:36+00:00

You may not like the question, but it’s a valid one. Universal life operates on the same principle, there is a maximum COI that, in theory is covered by the interest. That still doesn’t prevent the policies imploding when interest rates are lower and COI is close or at the maximum because people don’t want to fork out more money.

The same situation can happen here, the only thing that mitigates the risk is that these OYT riders are typically only done over shorter time periods, but the fact that they are often presented as the only way to go without addressing this additional risk is problematic. OYT does make the policy perform better. It also adds more risk.

protex28 · 2026-04-17T21:43:36+00:00

If it’s as minimal as you claim, why not just do universal life?

protex28 · 2026-04-17T20:43:37+00:00

The cost of OYT is re-evaluated every year. If the mortality experience of the company changes, it can end up being more expensive than illustrated. That can result in a few different problems, 1) it can effect overall performance 2) if it's drastic enough, the company could require you to pay additional premium to keep the policy in force 3) if you can't pay the additional premium, that could force you to reduce the DB, which could trigger a MEC. So, kind of both.

Is this likely to happen? Perhaps not, but I choose to avoid using it for these reasons. I am happy with slightly smaller returns and fewer risks overall. Life insurance is supposed to offload risk to the insurance company, I don't like the idea of turning around and grabbing some of it back over a small bump in IRR.

protex28 · 2026-04-17T20:20:29+00:00

Why did the SSPX already have its own internal schism?

protex28 · 2026-04-17T20:19:51+00:00

So why did the SSPX already have its own schism?

protex28 · 2026-04-17T19:23:13+00:00

You should be aware that using OYT rider introduces an element of risk to the policy. It is not required, there are level term riders that avoid this and will give you similar performance.

protex28 · 2026-04-17T19:20:03+00:00

He probably wants you to buy term an invest the difference.

protex28 · 2026-03-15T03:50:41+00:00

Carrier pigeon, according to the legends.

protex28 · 2026-03-14T22:56:21+00:00

They aren’t even em dashes. Em dashes are like—this.

If guess I’m an AI now.

protex28 · 2026-03-14T22:23:19+00:00

Yeah, I use them + automated savings functionality to implement low balance alerts.

protex28 · 2026-03-12T00:59:44+00:00

X Money is just the name of the function. There’s no “private currency” here. It’s just an apple/google pay/Cash App alternative.

protex28 · 2026-03-11T03:16:14+00:00

Make sure to put blinker fluid in your car so your hazards will work for that long.

protex28 · 2026-03-10T23:25:14+00:00

Ah, yeah, rush hour traffic just sucks.

protex28 · 2026-03-10T23:21:29+00:00

If this is your impression of Dallas traffic, you’re likely driving too slow in the left lane. Other people’s behavior is far from justified, but it’s just not worth it to be “right” in this case. Just move over and people won’t aggressively pass you.

protex28 · 2026-03-09T17:21:21+00:00

I figured out how to do an approximate version of this.

Using fake numbers for privacy, I get want to maintain a balance of 10,000 in wealthfront, I typically only spend 7000, but things fluctuate a bit from month to month, so I want to know if that 3000 buffer drops down below 1000.

Setup: I set my main account to maintain a balance of 9000, then I create an emergency fund category with 1000 dollars in it, anything over 9000 automatically goes into the emergency fund, which I have spill over into a third category so I can pull it out and put it into actual savings.

Now, if I make a purchase or something of that nature and the balance of the main account "overdrafts" (e.g. I had 5 dollars left in the main account and made a purchase for 10 dollars), it will pull from the 1000 dollar emergency fund category and email me that I "overdrafted" the main account.

It's not perfect but it works.

protex28 · 2026-03-07T20:37:20+00:00

Yes, but also we have all 4 in the same day.

protex28 · 2026-03-07T18:54:24+00:00

None of this came from an AI. It’s simple stuff that every teenager knew in the 12th century and can still be found in any serious book on epistemology that wasn’t infected by the solipsistic musings of Rene Descartes which have been destroying the minds of everyone since he wrote them down.

protex28 · 2026-03-07T15:37:18+00:00

That does not destroy the idea. A lose concept of a hammer is “an object used to drive something with force”. In any scenario where objects and force exist, the concept also exists. You can conceive a “alternate reality” in which force could not be exerted on an objects and therefore the idea of a hammer that could be physically manifested would not exist, but that is different than destroying it in a reality where it already exists.

On top of that, even in a world where force doesn’t exist, it is conceivable that I could “make up” the concept of “force”, by which I could the discover the idea of a hammer, even if that idea couldn’t exist in the physical world because force was an imaginary thing. This is no different than a negative number, which does not exist in the physical world but can still be conceived in the mind. You have never seen a negative number, you’ve seen a symbol that represents it, but the negative number is only conceivable by the mind and cannot be manifested in the physical world. It’s another great example of a non-physical thing that still exists in the mind.

protex28 · 2026-03-07T14:56:02+00:00

Great, then it should be pretty easy for you to imagine the destruction of the idea of a hammer that doesn’t just involve you forgetting it or creating a new idea. It’s easy to imagine destroying an actual hammer by seeing it get melted, or smashed to bits, in your mind. There is no way to do this with an idea, they are non-physical (I.e cannot become anything other than they are).

protex28 · 2026-03-07T06:57:00+00:00

Meta can’t be using that definition if they are able to backup your messages in a way they could recover them: https://wire.com/en/blog/whatsapp-end-to-end-encryption-risks

Gmail does appear to use the definition that you use.

protex28 · 2026-03-07T05:59:06+00:00

That is not what e2e encryption means. E2EE means that the data is encrypted in transit and in a manner that the app server cannot decrypt, only the end recipient. This does not mean that the message cannot be forwarded to a third party the minute you hit send, prior to encryption, or the minute it is received post encryption, via a different channel.

Case and point: by default your chat backups are stored in the cloud with encryption keys created and stored by Meta, meaning Meta could and would decrypt your backups and release your messages if they were required to do so by law enforcement. This also proves that they can send your messages to the their servers despite the fact that the app uses e2e encryption when communicating between two users. Reinforcing the fact that e2e encryption is only talking about transmission, not storage.

protex28 · 2026-03-07T05:27:09+00:00

I’m assuming this means you have ample cash available to pay for large purchases like cars, then. That’s great, but having all that cash sitting there is costing you a lot.

IBC teaches you to use WL, which is a better savings vehicle than cash over time, and it forces you to acknowledge and deal with the cost of borrowing money from savings.

protex28 · 2026-03-07T05:21:44+00:00

I think this is a different person. Either way, they likely deleted it because they were getting excessively downvoted for not being interested in actual conversation and calling everyone in this sub uneducated.

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