If you’ve been doing any research on the Infinite Banking Concept you may have come across a blog, written by a financial blogger, that discusses some of his thoughts. He had apparently just heard about this concept, and decided to pass on some of his expertise. He had a list of questions, comments, and- as he writes it- “Red Flags,” written in red of course. So we disected it… in detail.
phil koreis March 15, 2012 at 7:19 am
An observation, the Infinite Banking Concept (IBC) is not investing, it is a guaranteed savings system using Participating Dividend Whole Life Insurance. A major focus, when used properly ( funded to the MEC limit), is to provide access to capital while simultaneously providing the end result of wealth accumulation via Death Benefit to replace lost income if the insured passes unexpectedly.
phil koreis March 15, 2012 at 7:31 am
we either pay interest or earn interest. accumulated money spent will no longer earn interest and benefit of compounding on “spent” accumulated money would be lost “forever” .
phil koreis March 15, 2012 at 7:37 am
borrowing funds is from, for the discussion, the Insurance Company with the policy Cash Value as Collateral. thereby not increasing the Net Amount At Risk.