Originally Posted by Rain Man:
I had to look it up, so no for me. But I'm in the stage of life where I'm paid off and avoiding debt, so it's kind of irrelevant for me.
Well it wouldn't put you in debt. Actually quite the opposite. Your cash flow would remain exactly as it is now, but you would be leveraging your cash so that it continues to earn uninterrupted compound interest for life instead of constantly draining your account every time you buy something (ie. cars, vacations, weddings, business expenses, everyday personal expenses, etc.)
It guarantees that you'll reach the end of the "hockey stick" where those huge compounded returns come into play. Most people never make it there because you either spend or lose your money, which resets your compound curve on your timeline/graph, and can never be recaptured.
I've become very passionate about it since I began doing it have seen and felt it working. [Reply]
Originally Posted by DRU:
Any Infinite Banking Concept practitioners in here?
Looks like its based on whole life insurance. Uhh, no thanks. Whole (or permanent) life insurance is pretty expensive as an investment vehicle, with a comparatively lousy rate of return. If you're a higher income earner and have maxed out your 401(k), IRAs, etc., and/or have some unique reason to have whole life, then sure, whatever, but for the vast majority of people, I wouldn't bother with it. Term insurance is substantially cheaper.
All that said, I do have a modest amount of whole life, which I got back in like 2000. Now, about 18 years later, the cash value of the policy equals the amount I have paid in premiums. Now, there was the peace of mind of having life insurance in case something happened to me years ago as well, of course, but still, that's a lousy return where the stock market since 2000 is up about a bazillion percent.
I would have been MUCH better if I took like X% of that whole life premium and put it into term insurance, fixed for 20 years, so I would have the same death benefit as with the whole life, and put the rest of it into index mutual funds or something. [Reply]
Originally Posted by R8RFAN:
I was just sitting on the toilet counting my stash and thought I would take a pic for all you broke dicks who frequent this site
Originally Posted by R8RFAN:
I was just sitting on the toilet counting my stash and thought I would take a pic for all you broke dicks who frequent this site
Sitting in that much cash is pretty dumb.
Absolutely no reason to do that. Have your money make more money. [Reply]
Originally Posted by displacedinMN:
We do not get to pick how the funds in our retirement account. But it pays better than the IRA. time to make a call
I probably don't fully understand your options, but if you've got money in an IRA earning 1.5 percent, presumably it's some sort of CD or something. If that's true, don't put any more money into that and pick pretty much any other option rather than sitting on your toilet holding it in cash. [Reply]