Infinite Banking vs Stock Market Investing [Average Returns vs Actual Returns]

Join Barry and Steve as they take a deep dive into the numbers and compare infinite banking to stock market investing, taking an in depth look at the actual returns versus the average returns touted by many financial gurus. You will be surprised at what you find out.

Infinite Banking is a strategy of growing wealth outside of Wall Street by using a dividend paying whole life insurance policy as an uncorrelated asset, not connected to the stock market, to provide a guaranteed safe haven for your overall portfolio, which offers peace of mind and certainty in uncertain times.

Certain financial entertainers will tell you that you can earn up to 12% returns in the stock market. However, that number has been shown to be unreachable. More often, financial gurus will promote a high stock market average return of 10% or more, when in reality the actual return is much lower, particularly when you factor in taxes, fees, and volatility (sequence of returns risk) which lower your actual return.

A popular mantra among these so called "gurus" is the phrase, "buy term and invest the difference," which all too often is never executed as the person who buys term usually finds something else to spend the extra savings on. Ironically, a properly structured whole life insurance policy designed for infinite banking typically uses a term insurance rider to allow the policy to be overfunded and avoid becoming a MEC. So with a dividend paying whole life insurance policy designed for infinite banking, you get both whole life insurance and a term insurance rider, providing a leveraged death benefit in the early years in the event of your untimely demise.

In addition to guaranteed returns plus dividends that can be used to purchase additional cash value and death benefit, your cash value can be borrowed against income tax free. You can use the loan to purchase other income producing assets, such as investing in your business, buying dividend paying stocks, or investing in real estate. The cash flow from these assets can then be used to pay back your loan and refill your "Bank." You can view our video on an infinite banking strategy with real estate investing here. https://youtu.be/pYxaNGAPyIQ

At the 25:00 mark we see a 20 year average of the S&P 500, which is not 12%, but rather 5.6%. However, the sequence of returns is an actual return of 4.7%. Contrast this with the 5% net return with cash value whole life insurance, an asset that has creditor protection in most states, offers guarantees, and has a death benefit.

And none of this takes into account how much your policy's cash value and net worth will grow when using your whole life insurance to practice an infinite banking strategy, wherein you borrow against your cash value, still making your returns on your policy's total cash value account, and purchasing cash flowing assets with the money you borrowed, earning returns on both assets simultaneously. See our article on using life insurance as your own bank here: https://www.insuranceandestates.com/using-life-insurance-as-your-own-personal-bank/

📖 Chapter Timestamps Here ⏰
0:00 Intro
0:46 Goals
1:44 Barry's Financial Advisor Story
3:00 Stock Market vs Infinite Banking
7:20 Infinite Banking Illustration
11:40 Truth Concepts Calculator: Funding Illustration
15:00 Tax-Free Growth Return Factoring 30% Tax Bracket
20:38 Death Benefit Comparison
22:11 Infinite Banking Policy Drawback?
24:34 Sequence of Returns
27:25 Sequence of Returns with Fees and Taxes
28:52 Final Thoughts

🔎About Steve and Barry

✅Steve Gibbs
*24+ years Trust and Estate Planning Attorney
*Co-Founder of Insurance and Estates
*Infinite Banking Advocate and Coach

✅Barry Brooksby
*24+ years in Financial Services
*Founder of Focus Wealth Group
*Infinite Banking Practitioner
*17 Year Real Estate Investor

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🔎Books and Resources: https://www.insuranceandestates.com/resources/ 🔎
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DISCLAIMER: All content in this video is for educational purposes only and is not to be interpreted as personal financial advice. Always do your own due diligence.