Archive for month: November, 2023

Connect with john Fox Ward:

The Beauty Of Unstructured Loans

November 17, 2023/in Blog, Insurance/by The Nash CashFlow Group

Applications, justification, income verification, qualification, etc…. These are some of the many steps we have accepted we must take when getting a loan from someone else. It’s a laborious process that’s not within our control.

What if there was a better way to access capital? Come join Doug and John to find out how!

“What is an unstructured loan? It is basically an open ended loan arrangement. It is open ended because of the time and frequency of repayment is not defined. There is no set time of repayment. This means that you can pay it back whenever you want, and if you have enough collateral capacity to absorb the loan, you may never have to repay the loan or the interest. (Very) few people can obtain (an unstructured loan unless you have) access to loans from friends without terms, or available from your life insurance company if you own a permanent life, insurance contract.” – Brian Bloom – Confessions of a CPA, The Truth About Life Insurance.

Connect with Doug MacKenze:

Connect with john Fox Ward:

Is Now The Ideal Time To Buy Whole Life Insurance?

November 10, 2023/in Blog, Insurance/by The Nash CashFlow Group

To repeat an old adage- the best time to buy life insurance was 20 years ago. The second best time is now. The time value of money coupled with the power of compounding means that age is always the most powerful predictor of policy performance over the long term. However, there are other factors at play at a Macro level that play a role.

Insurance companies rely on safe assets to generate yield on their capital, and therefore, are greatly affected by interest rates. The last few decades have seen historically low interest rates, and declining dividend rates by insurance companies.

We are now at a turning point in this environment, and are starting to see companies either hold, or slightly increase their annual dividend crediting rates.

While we certainly can’t predict the future, we postulate that now is likely to be a very good time to own whole life insurance.

“At the end of the year, the Life Insurance company makes an accounting of the experience of that year of the death claims paid, the earnings on premiums collected, and the expenses of running the company. A dividend is declared which is actually a return to the policy owner of surplus premium that as collected. Hence, it is not an earning and, therefore, is not taxable. When that dividend is then used to buy additional paid-up insurance at cost, then the result is a continuous compounding of an ever-increasing base.”

–R. Nelson Nash, Becoming Your Own Banker- Unlock the Infinite Banking Concept.

Connect with Doug MacKenze:

Connect with john Fox Ward:

Collateral Capacity- The Importance of Increasing your Leverage

November 3, 2023/in Insurance/by The Nash CashFlow Group

If you’ve listened to any of our previous episodes, you’ll know that one of the major aspects that makes IBC so powerful is leverage. Leverage is traditionally viewed as a scary thing that irresponsible risk taking investors use. We would argue that the contractual leverage provided by a dividend paying whole life insurance policy is one of the safest financial tools one can have at their disposal.

An life insurance policy is unique in that every year your leveragable capacity grows exponentially faster than the year before as you pay premiums and as policy dividends are paid out and reinvested as paid up additions. This is different from a HELOC or traditional line of credit.

Join Doug and John as they talk about the importance of growing you collateral capacity.

“Many of the people that I work with have a large amount of cash value, permanent life insurance on themselves, and on key family members, and they don’t know how to use it. There will be many times during your career or in your personal life that you will need a cash cushion, and the cash value of life insurance will serve that purpose! A qualified advisor will show you how to structure the policy and once you have the money in the policy, it will become the lifeblood of your financial portfolio, while eliminating the need for many of the other buckets you were told you needed in the past. This one bucket will do the work of several, and it will give you liquidity, use, and control of your money.”

–Bryan Bloom, Confessions of a CPA….Why what I was taught to be true has turned out not to be.

Connect with Doug MacKenze:

Connect with john Fox Ward: