Insurance Archives - The Nash CashFlow Group

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Securing Your Family’s Financial Future With Child Policies

November 24, 2023/in Blog, Insurance/by The Nash CashFlow Group

Compound interest can work for anybody at any age, but the longer the time horizon, the better. There is no better time to get an insurance policy than when someone enters this world.

Premium payments required to acheive a large death benefit are low, passive income is assured, insurability is locked in, most underwriting requirements are avoided, and most importantly it allows a substantial tax free build up of cash that can be used for decades to come.

Join Doug & John as they discuss just how powerful child policies really are.

“As each generation becomes grandparents, they buy life insurance on their grandchildren. If the message is passed on to each child-bearing generation- as they become grandparents then you can create the same effect as the “even distribution of age classes” in the growing trees, but it is far more profitable and certain as to the results.” –R. Nelson Nash, Becoming Your Own Banker, Unlock the Infinite Banking Concept.

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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.

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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.

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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.

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Willie Sutton’s Law- Wherever Wealth is Accumulated Someone Will Try to Steal it

October 27, 2023/in Insurance/by The Nash CashFlow Group

Do you like paying taxes? Neither do we.

Come listen as Doug and John discuss this chapter in the book “Becoming your own banker” and learn how they only pay taxes once. Learn how you can protect your hard earned money from unkown future tax burdens, changes, additions, etc…

“Economic problems are best solved by people freely contracting with one another and with government limited to the function of enforcing those contracts. And the best way to do so is through the magnificent idea of dividend paying whole life insurance! It has been around for over 200 years. It has stood the test of time. It is not compulsory. It is not a government sponsored idea. It preceded the income tax idea by a long time. It is private property!” –R. Nelson Nash, Becoming Your Own Banker, Unlock the Infinite Banking Concept.

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Susie Q. Gets An Education

October 20, 2023/in Insurance/by The Nash CashFlow Group

“Get a 4 year degree and you’re set for life!” This the advice that has permeated America for the better part of the last 60 years. We find that many people are getting degrees for the sake of getting a degree, or for getting the “college experience” rather than actually going to learn a meaningful skillset.

In this episode we examine the chapter “A different look at the monetary value of a college degree” from the book “Becoming your own Banker”. We think our listeners will be interested in this unique perspective on the true opportunity cost of a college degree for those that don’t have a specific calling.

“So, in evaluating just the financial benefits of the college degree at a cost of $80,000 vs putting that same $80,000 into a high premium whole lifeinsurance, I dont believe the degree is as valuable. As a matter of fact, the probability of the college educated person ever learning the benefits of “banking though the use of whole life insurance is not very good. He will be exposed to some professor teaching him that “whole life insurance is a very poorr place to put money.” It will take a lot of effort to get this notion out of his head, because “unlearning” is more difficult than learning. I think that Professor Rotfield might explain it, “He has been trained instead of having learned to think. please remember that I am not against higher education. To the contrary, I believe it should be a life-long activity. But observation leads me to conclude that we have a lof of people in America with degrees- but not many of them are educated?” –R. Nelson Nash, Becoming Your Own Banker, Unlock the Infinite Banking Concept.

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Sequence of Returns – Friend or Foe?

October 13, 2023/in Insurance/by The Nash CashFlow Group

Save via sponsored retirement plans until you’re 65 and then take out 4% a year! That is the standard advice we see everywhere these days. In theory, if the base of capital were static (i.e. not volatile), that work. However, the “savings” instruments used in these plans are actually investment vehicles such as stocks and bonds, and as such, they are not static, and can be quite volatile.

As it turns out, the amount that can be taken out each year is drastically affected by the movement of those underlying investments, and the order in which those returns is sequenced, can drastically alter the outcome of a financial plan.

“When government creates a problem (read onerous taxation) and then turns around and creates an exception to the problem they created (read tax sheltered retirement plans, etc.) aren’t you just a little bit suspicious that you are being manipulated?“ –R. Nelson Nash, Becoming Your Own Banker, Unlock the Infinite Banking Concept.

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What Is the Value of the Premium Deposit Fund Rider?

October 5, 2023/in Insurance/by The Nash CashFlow Group

The premium deposit fund rider is not commonly discussed, but is an excellent (free) rider with most insurance companies. Discover how you can store money for excess premiums with the insurance company & earn a return!

“Banking is a process, not a product!” –R. Nelson Nash, Becoming Your Own Banker, Unlock the Infinite Banking Concept.

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Everyone Should Be In Two Businesses….

September 28, 2023/in Insurance/by The Nash CashFlow Group

At this point our listeneres should be well aware of the advantages of using whole life insurance as the medium to practice the Infinite Banking Concept. These benefits can be supercharged for the business owner. All businesses require financing to be succesful. Would you rather rely on the bank, or control that banking aspect yourself?

Join Doug and John to discover the innumerable benefits of implementing IBC for business owners!

“Everyone should be in two businesses- the one in which you make your living and the other should be the banking business that finances whatever you do for a living. Of the two businesses, banking is the most important. Businesses come and go, but banking is eternal.” –R. Nelson Nash, Becoming Your Own Banker, Unlock the Infinite Banking Concept.

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