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Windfalls – I Wish I Had Started 20 Years Ago!

What This Episode Is About Reaping the benefits of money that’s been working for you for 10-30 years is like being handed the keys to a business that’s been successful for the same amount of time. What entrepreneur doesn’t dream of that situation? While we’re not diving into how to take over a profitable company…


  1. Jay on 03/02/2018 at 12:15 AM

    Russ, how do you contrast the advantage of using the insurance polices and their rate of return with what could be obtained if the same money was invested in the stock market (assume indiv stocks, mutual funds, etf’s etc)? Maybe another way to ask my question is, aren’t I giving up rate of return if I don’t have money in the stock market? Or is this strategy just one component of an overall plan? Or, if I assumed the rate of return might be higher in the stock market (or 401k etc) but I miss out contributing as much because of the timing component and paying bills as you mention, does the insurance policy average a higher more consistent return?

    • Jonathan Murner on 03/19/2018 at 4:47 PM

      Jay, Great questions and very similar to the ones I asked early on. When asking the compared to what we have to make sure we classify correctly. Product vs Process. The insurance policy is a product that substitutes using a savings account or money market account. It earns 3-5% (in today’s environment) compared to 0-1%. The process of borrowing against the cash in the life insurance policy to purchase investments (businesses, real estate, lending, etc.) is called Infinite Banking.

      Investing in the stock market whether directly or through a 401k is a product. While I don’t personally invest in publicly traded companies, there’s nothing that would prohibit me from doing so through using the process of Infinite Banking.

      In that example I would get the growth of my insurance contract plus the result of the investment.

      It’s not about either insurance or investment, it’s about insurance and investment. That’s the process. Traditional planning teaches OR, we teach AND.

      I hope this answers your question. Thanks for listening!

      If you haven’t already listened to our Becoming Your Own Banker episode I would encourage you to do so. It gives more content on this discussion.

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