Yo! NewHope! **UPDATE** Own Your Own Bank? YES!

DON'T DROP DEAD! MY FAULT.

I forgot to update the thread. I had some email back and forth and STILL forgot to update this.

This is what happened;
I had a conference call with the broker and attorney on 9/9. I asked lots of qustions.

1. The leveraged premium program where you get cash up fornt is done for folks around age 70.

2. As far as using policies for a source of capital - yes - that is done and is very 'tax effective'.

3. On 9/9 I scheduled a face-to-face meeting for 9/16. In view of the market developments this week of 9/15, I cancelled our meeting and tenatively re-scheduled for 9/26.

Again I apologize for not up-dating everyone.

Here are some helpful links about using life insurance as a tax effective, source of capital/cash flow

Borrowing against your life insurance
http://www.google.com/search?hl=en&rls=com.microsoft:en-us&q...
Monetizing Insurable Capacity
Lifeline Asset Program Overview
http://www.nstarmgt.com/pdf/lifeline.pdf
Premium Financing Done Right:
http://www.lifeinsuranceconcepts.com/premiumFinancing.php?gc...
How to Leverage Your Insurability? - Premium Finance & Life Settlement
http://ezinearticles.com/?How-to-Leverage-Your-Insurability?...
Private Survivorship Split Dollar
http://jh1.jhlifeinsurance.com/vgn/images/portal/cit_2074342...
New - For High-Net-Worth Seniors - Premium Financing is a method of funding the purchase of life insurance for those individuals who have significant assets, but do not want to use liquid capital, real estate or investments to pay the premium on a life insurance policy.
http://e-wealth.com/premiumfinance.html
Tip for Borrowing Against Your Life Insurance Policy
http://www.soundmoneytips.com/article/3880-tip-for-borrowing...

I couldn't find the link where I harvested this article, sorry.
Life Insurance
Profit From Your Insurability

Proper financial planning involves making sure you are taking advantage of every available asset and financial opportunity. However, there is one asset people often ignore that could potentially add hundreds of thousands of dollars to your net worth---your insurability.

Everyone in reasonable health could go to an insurance company and get life insurance, this is your insurability. Life insurance companies will base how much insurance to give you on your age, health, assets, income, etc. Often, people will buy insurance based on paying off a liability at death or replacing income.

However, they may not purchase the maximum amount the insurance company will allow. There is now a wa y to monetize this excess insurability and potentially increase your net worth by hundreds of thousands of dollars through an innovative program called Premium Financing. The market for this type of program is currently $10 billion dollars and expected to increase to over $100 billion over the next few years.

Background
During the AIDS crisis of the 80's many AIDS patients had life insurance policies and what they thought was a terminal illness. Often times they needed money to pay for astronomical medical bills. Investment companies sprung up that were willing to buy their policies for more than the cash value, pay the premiums, and then would get the death benefit when they died. It was a win-win situation---the AIDS patient got money that they needed and the investment company got the eventual death benefit of the life insurance policy.

Today, these investment companies focus on buying policies from seniors who no longer want or need them.
Premium Financing
Premium Financing is a new twist on this concept. Instead of buying life insurance policies from people who do not want them, Premium Financing focuses on getting people to buy life insurance with the ability to sell it back within a short time period. Here's how it works:

Step 1: A senior, usually age 70 or older, would buy a life insurance policy
Step 2: A finance company would lend the senior the money to pay the premiums. The loan would be backed by the life insurance policy and there would be no out of pocket expense to the senior.
Step 3: The senior would hold the policy for a period of time, generally 2 years. If he or she died during that period, their beneficiaries would get the death benefit of the policy minus the premiums the finance company paid plus interest.
Step 4: at the end of two years, the senior can choose to keep the policy by paying back the finance company or selling the policy to an investment company and getting the proceeds after the finance company is paid off. Here is an example of a typical transaction:
A senior buys a $5 million insurance policy on his life. Premiums of $250,000 per year are paid by the finance company. If he dies during the 2 year period his family gets $4.3 million after the lender is paid back. After 2 years, the senior sells the policy and nets $375,000. So in effect, the senior has no out of pocket cost, if he dies during the two years his family gets $4.3 million and if he lives the full 2 years, he gets $375,000.

Those who take the time to understand and take advantage of this new market may find a way to add hundreds of thousands or millions of dollars to their net worth and the net worth of their family.

"Committed To The Eradication Of Poverty Among Patriots"

"Those Who Strive For Excellence Refuse To Fear Mediocrity; They Eradicate It."

Zero Tolerance For Flamers

"Committed To The Eradication Of Poverty Among Patriots"

It's not tax evasion, it's tax avoidance. Avoiding taxes is when you reduce the amount the IRS can tax.

Like you said, it's not a new idea. Rich people have been doing this kind of thing for a very long time.

-jcr

money laundering, "anonymous banking" and identity fraud."

Right, try tax avoidance: as quoted and allowed from IRS code...
Money laundering? Buying life insurance is money laundering? anonymous banking? How is this anonymous?
Identity fraud? It's a frickin' insurance policy.

So glad you popped in to "debunk" the idea.

Thanks for the bump.

"Committed To The Eradication Of Poverty Among Patriots"

"Committed To The Eradication Of Poverty Among Patriots"

I've never seen these books. I'll check them out.

"Committed To The Eradication Of Poverty Among Patriots"

I haven't gone that way because I don't want to commit the time. And I haven't found anyone I trust to shepherd it through for me yet.

But it's the way to go. Independence, As it grows it will have more influence.

"Committed To The Eradication Of Poverty Among Patriots"

Not incremental payments. If I was 20 years old I'd consider that for long term with the tax and interest savings for later in life. But I'm just looking for a place to put cash tax free. Then borrow it back untaxed as loan proceeds. I just want to starve the IRS any way I can.
Making money is not an issue. Keeping it is.
And this is a small part of the whole investment plan.I just don't want money I use for personal purposes (income) being taxed.

Thanks for the other aspects.

I'm still learning. I just know there is some benefit going forward. There will be other discoveries.

"Committed To The Eradication Of Poverty Among Patriots"

The mental blocs can all be destroyed with a support group who meets weekly on a conference call. I've seen it done for far more complicated things like tax issues, banking issues and legal issues.

If people want help they can always get it. We all learn from each others situations and difficulties...if we want to.

"Committed To The Eradication Of Poverty Among Patriots"

I first looked into this with the idea of paying the policy 100% upfront to shelter profits. I was also looking for ways to lein my properties with friendly leins that I could profit from. Then I saw that there is a clause in the insurance contract that says I can control where the funds are invested. Who better than myself?

So the company is limited by my choice in terms of being able to use my asset to profit.

As far as the fractional banking system. That will go on wether I do this or not.

You also touch on another interest I have. That being, buying an existing IC and revolutionizing how we do business. Change the system from the inside. There's plenty of fat in banking and insurance. I learned in my days of management with Home Depot, that where there's fat there's opportunity.

I have more homework to do.

Thanks again.
"Committed To The Eradication Of Poverty Among Patriots"

That's why I got so fired-up over the up-front payout from First Credit Suisse Bank.

It gives the person who doesn't have a lump sum on hand the opportunity to fund another policy to work with for borrowing.

You really do become your own mortgage company.

"Committed To The Eradication Of Poverty Among Patriots"

, but they were taking out the life insurance without their employees knowledge.
----------------
Also, If someone has $2 mil on my head, is there not an incentive to have me knocked off.

But what employer or anyone for that matter will pay you just for being alive?
I got over it real quick as I began to see how many people, especially older folks on fixed incomes could benefit. And the investment of those up-front funds can produce a cash flow.

And the beauty of it is, the policy holder is on record as having a motive for your death. So they would be the first to be suspected.

I can think of far more unscrupulous dealings that people participate in without any consideration everyday.
1. Mortgages - you pay back 3 or 4 times what you borrow.
2. Car loans - last longer than the cars
3. Personal Income tax - = slavery

Think of it like this. With one up-front payout, an average person can begin to emancipate himself from the above financial systems of bondage.
Its not a loan so it's not debt bondage.

"Committed To The Eradication Of Poverty Among Patriots"

...
We are sad to report that there has been an unfortunate rise in random, violent crime in our area, and our customer base has been reduced. Several of our customers have been killed.
...
Moving on to better, and COMPLETELY UNRELATED news, we are happy to report that revenues have increased 35%, due to insurance payments coming in well ahead of schedule.

Take the funds from policy #1.
Then buy the house. Pay for it in cash or take a small mortgage.
Then buy another policy #2. Pay it up in full.
Borrow against the house from the paid up policy #2 and pay yourself (via the policy) principle and interest.
All tax free!

"Committed To The Eradication Of Poverty Among Patriots"

How soon can I get it?

______________________________________________________
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This is very interesting I just heard about this from my insurance agent yesterday. It is called infinity banking and its a product from New York Life. You can front load a policy through a business and then after 4 years of accruals your dividends will be larger than the interest you owe on the loan you take out, so you are effectively having another source of income from the dividends to pay for the loan and any income you can generate on the cash you take out of the policy. There are also some tax advantages in there as well. I am getting a packet in the mail to find out more, I will post an update if I can find this thread again.