A Simple Way To Build Generational Wealth For Your Family While Alive

[Field Marshall Bradley]

No one has yet to mention the elephant in the room which is the annual contribution it will take to reach these numbers?

 

[Hijo de luna]

I'll take being called negative or troll or agent.

But, if this is going to be sticky--basically a get rich scheme. Atleast know the reality of this advice.

We really in here talking about "just save $20,000" like it's nothing.

This...



...is how you fix black American wealth. Not "flipping" a life insurance policy.

There talking about giving Latinos reparations over ICE and we supposed to tighten our belts.



This pisses me off.

This is fed data.

Hey Tone

 

[ahomeplateslugger]

But breh you guys aren't telling me the deal. Would this do the same thing as in the OP? As in giving the beneficiary of your choice a stipend each year or whatever? You say "let it grow" but how much money and how many years does this involve?

for the first bolded: yes, you can include a beneficiary and hand the account over to them. they can do whatever they want with it. if they wanna take out x amount a month they can, if they wanna cash out then they can do that, if they wanna leave the money in the account to grow more then they can do that too.

for the second bolded: how much money and how many years is on you. let's say you get whole life insurance at age 30 and you pay $8,230 a year for $236,679. in 30 years that's 246,900 and the interest on life insurance is usually 3-5% (really low returns). you are better off putting that money into a roth ira and getting anywhere between 8-10% back. the math just adds up to not get whole life insurance.

life insurance isn't the best option to invest in and build wealth with.

-whole life insurance only makes sense for the rich who can afford the really high pay out and term insurance is for ppl who have new born kids.

 

[CASHAPP]

for the first bolded: yes, you can include a beneficiary and hand the account over to them. they can do whatever they want with it. if they wanna take out x amount a month they can, if they wanna cash out then they can do that, if they wanna leave the money in the account to grow more then they can do that too.

for the second bolded: how much money and how many years is on you. let's say you get whole life insurance at age 30 and you pay $8,230 a year for $236,679. in 30 years that's 246,900 and the interest on life insurance is usually 3-5% (really low returns). you are better off putting that money into a roth ira and getting anywhere between 8-10% back. the math just adds up to not get whole life insurance.

life insurance isn't the best option to invest in and build wealth with.

-whole life insurance only makes sense for the rich who can afford the really high pay out and term insurance is for ppl who have new born kids.

ok im 26 so say i get a term policy for $1 mil or $2 mill. I would open up a revocable trust account for my minor sister since its recommended not to actually put a minor as a beneficiary. So i would set up the trust and put the trust on the life insurance policy so she gets it that way and gets a payment at ages 18, 21 and 25

what would be the next step then? To add the investment account as a beneficiary in my mom's name so she gets the money right away that way? say if i were to set up a payment of say 10,000 dollars a month, wouldn't the insurance money be spent up say years from now before the term expires and there ends up being no death benefit?

also what would you recommend would be a good investment account to start with and also a good trust account to start with? is it good to set up either through a bank? i really do not want to deal with lawyers. also....are the annual fees really high for the trust and investment accounts ? or is it a cheap annual fee?

 

[Taadow]

OP is thinking on the right track, but Whole life is garbage. Can't believe people here are pushing that. Insurance agents are already shady as it is. Expensive as fukk, and should not be used as an "investment". Leave that to your 401k, Roth, IRAs, and real estate (flipping houses, or renting out). Those are the true ways to build wealth.

My neighbor is an insurance agent and even he thinks Whole Life is trash, but he doesn't mind selling them to cacs (since that's most of his customers), but he'll put everyone else on game.

Life insurance is not an investment, it should be only used to protect your family in case you die.

Article: The Truth About Life Insurance

The part of this I'll agree with is "Life Insurance is not an investment" - with the tone that you shouldn't be going to get Life Insurance with the idea that it will get you rich one day.

That said, I still maintain that Whole Life is the best of the Life Insurances.

In watching this video, the same drawbacks he said of Whole Life are the same drawbacks of the 401k - but everybody seems to love that...the idea of both of those products is that YOU'RE NOT SUPPOSED TO BE TAKING MONEY OUT OF THEM BEFORE THEY MATURE for them to be the most beneficial to you...

And again, Whole Life Insurance is only as expensive as the coverage you want to get. The rates for all insurance is based on a whole bunch of factors.

 

[CASHAPP]

The part of this I'll agree with is "Life Insurance is not an investment" - with the tone that you shouldn't be going to get Life Insurance with the idea that it will get you rich one day.

That said, I still maintain that Whole Life is the best of the Life Insurances.

In watching this video, the same drawbacks he said of Whole Life are the same drawbacks of the 401k - but everybody seems to love that...the idea of both of those products is that YOU'RE NOT SUPPOSED TO BE TAKING MONEY OUT OF THEM BEFORE THEY MATURE for them to be the most beneficial to you...

And again, Whole Life Insurance is only as expensive as the coverage you want to get. The rates for all insurance is based on a whole bunch of factors.

best company to get whole life insurance with nowadays?

is northwestern mutual good?

 

[Goat poster]

I'll take being called negative or troll or agent.

But, if this is going to be sticky--basically a get rich scheme. Atleast know the reality of this advice.

We really in here talking about "just save $20,000" like it's nothing.

This...



...is how you fix black American wealth. Not "flipping" a life insurance policy.

There talking about giving Latinos reparations over ICE and we supposed to tighten our belts.



This pisses me off.

This is fed data.

You should do a vlog about this on your wack ass channel

 

[Reign_Of_The_Most_High]

Just a little FYI when graphs and articles speak on "wealth" they aren't talking about wages but assets like the value of your Homes, land, etc and investments/savings which is what the OP is talking about so basically we are so behind in that category because we Aren't doing this type of stuff

I agree, although with a caveat. We are not doing ENOUGH of. Example, I was planning to invest in bitcoin at several points. When it was at $50,200,500 and i think like 1k. But ultimately didnt, because I wanted to do more research to fully educate myself and wound up forgetting about it, until I seen that shyt shoot through the roof. Even bought a hard crytpo wallet a few months ago to start after seeing that..still in the box brand new smh.

Im good with stacking bread, had no debt (until a couple months ago, got a new car because of the distance of my current job) but stacking doesnt get you very close to creating a wealth engine. I need avenues to increase my sources of income outside of my job. Because unless you make a crazy annual salary it aint shyt.

Any advice on that @dark_magic?

 

[Momentum]

I don’t have the time to breakdown why, but this isn’t a good plan.

 

[Momentum]

I'll take being called negative or troll or agent.

But, if this is going to be sticky--basically a get rich scheme. Atleast know the reality of this advice.

We really in here talking about "just save $20,000" like it's nothing.

This...



...is how you fix black American wealth. Not "flipping" a life insurance policy.

There talking about giving Latinos reparations over ICE and we supposed to tighten our belts.



This pisses me off.

This is fed data.

Why don’t any of you wealth gap people run for office? Or does that actually require more than bytching online?

 

[dark_magic]

Im good with stacking bread, had no debt (until a couple months ago, got a new car because of the distance of my current job) but stacking doesnt get you very close to creating a wealth engine. I need avenues to increase my sources of income outside of my job. Because unless you make a crazy annual salary it aint shyt.

Any advice on that @dark_magic?

You are correct in that you are seeking to create a wealth engine. I call it personal economy. You are seeking to maximize the inflows/outflows of the dollars that pass through your hands.

Keep yourself as close to debt free as personally possible. Learn the secrets of maximizing your credit score.

Taxes and interest are the two greatest expenses that anyone pays during their lifetime. Create a tax management strategy for the former as well as seek to redirect the latter into your personal bank.

Create a business to create income on the side.
You will want to work a job and your side business simultaneously for awhile.
Study (and implement) passive cash flow creation.

Real estate, an online business, private lending, and others are great side businesses. Sales (and marketing) is the name of the game.

An alternate path would be to study (and implement) portable skills such as photography, programming, copywriting, et al. These skills will allow you to work anywhere in the world as well as go freelance.

Practice being debt free personally while utilizing debt for your business. Businesses and many industries such as real estate and banking use debt heavy (leveraging) to create cash flow.

Debt is credit. Credit is finance. Banks create credit. The previous statement is straight from the horses mouth of the Bank of England, the second oldest central bank in the world.

Investing is form of spending (allocation).

You can accelerate your personal and business financing if you study banking and become the banker. Arguably, your need for finance is even greater than your need to invest throughout your life.

Study (and implement) economic philosophies that resonate with you. I, personally, practice full reserve banking, FI/RE (Financial Independence/Retire Early), and the Austrian School of Economics, although I will study Keynesian Economics and fractional reserve banking because these are the models that governments, banks, and academics use.

The two books I would recommend towards beginning to change how you think with regard to money (and economics) are Rich Dad, Poor Dad by Robert Kiyosaki and Becoming Your Own Banker by R. Nelson Nash. From there, you can branch out to what interests you as you specialize.

Any financial vehicle has its pros and cons as well as risk. Mitigating risk is extremely important with regard to financing, investing, and speculation.

There is the art (practice) and science (theory) of these topics. Do both.

Do your own studies. Formulate your own thoughts. Come to your own conclusions. Implement what you've learned. Note the results thereafter. Adjust.

 

[Amerikan Melanin]

Wouldnt this make more sense to be done in an older relatives name? Parent grand parent or great uncle? Anyone can be named beneficiary.

Get your grandparent to take out a policy and you just pay the premium for them in return you get the payout.

Not saying for you not to have your own policy but this way you can be alive to see the pay out.

???

 

[TLR Is Mental Poison]

There are people in this country who can spend $1 million a day for 300 years and you’re talking about generational wealth?

Has anyone ever thought that maybe the accumulation of that many resources is unnatural?

I'm starting to wonder if some people LIKE being powerless and broke. The prospect of a path to wealth clearly FRIGHTENS you

 

[Sunalmighty]

It doesn’t matter you could do it with term life too. Term life is always the better decision anyway. You would just renew the term life in 20 years or whatever if you are still young then do it again



What does inflation have to do with anything? Is $1 million in 100 years gonna be equal to $1 today?

that's bad advice

 

[Jhoon]

that's bad advice

Can you imagine the premium on a 50 year old trying to buy another 20 year policy?

That’s why these threads are the worst.