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

[dark_magic]

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.

???

It makes more sense to create a policy on a younger person. There will be more time to fund the policy as well as time to grow.
The policy owner will control the policy gaining access to its living benefits.

 

[CASHAPP]

best company to get whole life insurance with nowadays?

is northwestern mutual good?

 

[Jhoon]

It makes more sense to create a policy on a younger person. There will be more time to fund the policy as well as time to grow.
The policy owner will control the policy gaining access to its living benefits.

The younger you are the healthier you are. The healthier you are the lower your premiums.

But we are asking folks who have only $500 in their checking account and love kicking out their children at 18 because they’re acting grown to have the foresight to plan their children’s future. Those people don’t even have enough cash for their casket.

 

[Reign_Of_The_Most_High]

I

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.

I appreciate the help. Thanks alot

 

[CASHAPP]

The younger you are the healthier you are. The healthier you are the lower your premiums.

But we are asking folks who have only $500 in their checking account and love kicking out their children at 18 because they’re acting grown to have the foresight to plan their children’s future. Those people don’t even have enough cash for their casket.

I was on another site and saw comments from these people saying with a straight face that they have a 25 K or 75K for their kids or grandkids. What kind of retarded cheap shyt is that? The scary shyt is that they actually think that is sufficient

Then one fool mentioned how people who get 500 K and up are trying to be killed because that is white people shyt and too much. Why do we have so much idiotic elders in the community?

 

[Cobalt Sire]

nevermind

 

[ViShawn]

My neighbor keeps talking to me about life insurance myself for similar reasons.

 

[TNOT]

I need more insurance. Right now through VGLI and employee sponsored insurance my family would receive 650k.

Ill be sitting down with an insurance rep to check all my options.


The bank yourself concept was introduced to me 15 yrs ago. I was pulling money out a credit union account in order to put a down payment on a vehicle.
The lady told me to do a safety secured loan. Borrow what you need from your own money and pay yourself with back with interest.


IMO borrowing from a whole life insurance policy is not the best idea. Use it for what it’s worth ntended for a way to past wealth down to your dependants

 

[Originalman]

You can do this in your parents names also or grandparents and be named as a beneficiary.

Yep yep

 

[CASHAPP]

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

is it because it would risk taking away all the death benefit funds?

 

[dark_magic]

For those who want it ...

The Lara-Murphy Show Podcast

This podcast covers the Infinite Banking Concept, Austrian Economics, banking, and other subjects on economics and finance.

 

[PhillyzFinest]

This is EXACTLY what I just did for my two daughters.

Get a cash value life insurance policy.

I’m currently paying $72 a month so it’s a bit pricey but in 20 years I’ll have $500,000 face value.

We need to have a full discussion on this.

Open a million dollar life insurance policy in your child or spouse's name.

Leave explicit instructions for them to put the death benefit funds into a low/medium risk equity account.

This will provide returns of 5-10% annually, or $50,000 to $100,000 interest income every single year.

So long as they have a normal job, an extra 50-100k additional income will provide them a comfortable life.

They can then leave the million in the investment account, will it to the next generation, and the cycle will continue.

May also work with trust accounts.

is

 

[dark_magic]

don't ever get whole life insurance. the monthly cost is ridiculously high and the payout is very low. you're better off getting universal if you're gonna get insurance.

A whole life insurance policy can be structured for low premium, high cash value.

The internal rate of return for a whole life policy is between 4% - 7%. The accumulations in the policy grows tax free.
Compare and contrast that rate of return with a bank checking account between 0.01% and 2.00%. Plus, you'll pay taxes on the gain in a checking account.

Universal life policies I would recommend against. The cost risk in the policy shifts from the insurance company to premium payer. You could even lose cash value depending on the performance of the insurance company. The reason for this is that a UL chassis is built on a 1 year renewable term policy. Its cheap in the beginning, but insurance cost increases as you age.

a bigger payout would be to deposit that money in an ira and let it grow. you'll get a bigger return for sure.

Depositing money in an IRA causes you to lose control over that dollar and its cash flow. You lose in opportunity cost.
An IRA limits how much money you can contribute per year.
The IRA also has fees that eat into the yield and growth of the qualified retirement account.
The average rate of return for the markets is 7%. Subtract fees and taxes, and that knocks 2 points or more off your yield down to 5%.

Most average investors yield about 3% in the markets. Subtract fees and taxes, and that lowers your yield even more.