Life Insurance

Robert Kiyosaki LOVES Whole Life Insurance: The Secret Tool of the Wealthy



Robert Kiyosaki Loves Whole Life Insurance

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Robert Kiyosaki has not too long ago come out and endorsed entire life insurance coverage as a financial savings car various to your common checking account. Why? Because the rich perceive the inquiries to ask with regard to what they need their cash to do for them.

Learn the 4 key cash habits that separate folks like Robert Kiyosaki, Warren Buffett, and among the most profitable folks on the earth from the remainder of the pack.

Learn learn how to leverage Whole Life Insurance as an asset that may change the best way you take care of your private funds.

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Chris Kirkpatrick
“The Safe-Bet Money Guy”
www.LIFE180.com
Facebook: Facebook.com/life180llc
Follow our LIFE180 Roadmap to Financial Success Course and learn to construction your life like the rich: 3videos.life180.com

https://youtu.be/Um5gv3ZZY2M

Robert Kiyosaki LOVES Life Insurance: The Secret Tool of the Wealthy

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46 Comments

  1. The wealthy are the only people a whole life policy might make sense for, since they have the level of wealth to be able to reap the tax advantages of a whole life policy, which most people can't. Love the "financial downturn" scare tactic-there are a lot of investments that aren't risky that offer better return and fewer pitfalls than WL.

  2. He's not referring to the typical Whole Life Policies. This is a High Cash Value Whole Life Insurance Policy that generates immediate cash value. There must be a reason why banks, and high net worth individuals put their money in these policies.

  3. Only dummies "invest" into life insurance. I have things called businesses that generate recurring income for me. In my early years i bought low cost high value term. Once i no longer needed (beat the rat race) i got rid of life insurance immediately. Again only suckers buy and keep life insurances. Dont be a sheep -Rick Sanchez

  4. Wait wait… Robert Kiyosaki clearly explained this as you sell your policies to someone for a cash settlement (less than the value) the buyer then takes over the payments and becomes the beneficiary… is this not correct???

  5. Whole life insurance for me is a hedge against taxes. You pay into it with after-tax dollars and the cash accumulates tax-free and you can take it out tax-free. You borrow against the policy, but the interest comes out of death benefit (NOT THE CASH VALUE). Having a tax free retirement vehicle is what will save your retirement such as a Roth. The issue with a Roth is you don't qualify for one once you start making serious money ($140,000 +).

    There are no tax-free retirement vehicles besides a Roth and whole life. Buy term and invest the difference, I laugh about that because nobody realizes Uncle Sam is going to increase capital gains tax in the future, which you have no control of. Dave Ramseys of the world don't tell you what was to happen if capital gains increased from 15% to 30%, even 40%? Then what do you do?

    Taxes are your biggest liability and expense. People watching Dave Ramsey who work 9 to 5 jobs don't even realize how much the government is ripping you off. Social security comes out of your paycheck (scam). Add social security you've paid in and see if you'll even receive it in 40 years.

    Whole life is also about the riders as well. Disability and Long term care riders. Healthcare and taxes are the biggest expenses and liabilities when you get older.

    I don't sell life insurance. I buy multi-family real estate also invest a ton in mutual funds & ETFs. Tax-free vehicles are what you want. Don't listen to people's nonsense on buy term and invest the difference. I strongly recommend you invest more money outside of whole life more, but don't dismiss the whole life. Otherwise, you don't understand how the government will come after your retirement through capital gains.

  6. You people need to stop using the crap savings interest rates, they have accounts that pay around 2% now, way better than the 1/10th a percent you mention. Still very low but good to keep a small amount of money in.

  7. Let's see the math, that backs up you claim! I have seen no evidence of it, any client that I've sat with would have been further ahead buying term insurance and investing the difference in a properly balance, and diversified mutual fund.

  8. I sell plenty of cash value insurance and make solid money doing so. I also own plenty of it and love having it. It’s a great product when structured well, but this guy is telling half truths and making vague statements that are supposed to support some conclusion.

    First of all, there’s nothing less complicated about how CV insurance works compared to his example of a 401(k). I would submit that a lot of the time it is more complicated than investment accounts. And saying “it’s not your advisor’s fault when your account loses value” is hardly true at all. Advisors should ask good questions and understand your risk tolerance and explain how likely it is to see fluctuations. If you’re surprised by unexpected fluctuations, that is absolutely your advisor’s fault. If you were prepared for fluctuations, then so be it! As long as you don’t sell, you’re fine because it will almost always rebound.

    When he talks about liquidity and having access, yes you do have access to cash value, but if it hasn’t grown much yet (which usually takes 10-20 years to be substantial), then even though you’re able to access the cash it’s not really a good idea. Because yes, loans bring interest charges and surrenders are inefficient and decrease value of the contract. By the way, interest on loans is not “your own money” like some of you are saying. You’re using money that the company holds to cover the risk of your death, so it’s the company’s money as long as you have insurance in force.

    Also, basis does come out from the cash value first and that is tax-free, but gains above basis are taxed at ordinary income rates unless you use loans (in this case, loans are often extremely efficient and effective) so his insinuation that there’s no tax is kinda true, but it’s misleading.

    If you want liquid money that’s also in the market, put your money in a non-qualified investment account that is consistent with your risk tolerance. It’s that simple.

    Over 20, 30, or 40 years of aggressive investing vs the same amount of premiums pumped into CV insurance, the investment account wins on value 10 times out of 10. I always recommend doing a little bit of both because they complement each other nicely, and whole life never loses value, so it’s good to access in down markets so that your investments can rebound. But putting everything into CV insurance will leave a lot of money on the table, even in the long run.

    Conclusion: When speaking with clients, after I determine their risk tolerance, I’ll recommend somewhere between 10% and 50% of their savings going into CV insurance (10% being a risky investor and 50% being a safe investor). CV insurance is an excellent tool, but it is absolutely not the only part of a good financial plan.

  9. Reading these negative comments remind me how I used to think before, not anymore. I heard bout "Infinite Banking Concept" along with "Bank on Yourself" and other names people used to rebrand Nelson Nash's concept and I did research on it. Took me months of reading books over and over and watching videos from Nelson Nash and others like this channel and now I get it. I have a whole life policy from 5 years ago and although it was good to meet my needs at the time, it would have been great if I had structured it for cash value. My new policy is structures for cash value by utilizing paid up insurance and I have a lot of cash available year 1. For those that follow Suze Orman/Dave Ramsey rant of but term and invest the difference, I suggest you take the time to lean about the concept before you just dismiss it. Comparing term and whole is comparing apples to oranges. Before anyone asks, NO I am not a life insurance agent, just someone that took the time to understand that whole life gives you both death benefits and life benefits.

  10. if i put say for example 10 grand. i get that i will only be allowed a percentage. My question is what happens if i borrow 9500 and i pass away. do i still have a little life insurance

  11. The biggest corporations in the world like Wallmart and others the frist investment is the whole life insurance. Whole life has great benefits financial and like he say tax free loans. You can build your own bank and still have death benefit. Whole life money in this policies can not touch for your debts that is one of the bisgest reasons to keep a wholelife in addition the compund interest. He is doing a hard work to explain how wholelife can be very beneficial to you!!! Listen insted to critizar.

  12. This wealthy people argument doesn't hold water. I doubt Warren Buffet or Bill Gates have any type of whole life insurance. Risk is relative. It all depends on your portfolio.

  13. Whole life might be great for people who already have money. But why the hell would you advise a Damm life insurance policy as a means to invest and get wealthy. Especially your misleading people who don't have money, this is the most terrible way to "create wealth".

  14. Well, first let me state that not all whole life policies are created equal. A high return policy typically pays north of 5%-7%
    If you place your money in a savings account you are looking at an APY of less than 1%, sometimes as low as .5%. Inflation is generally accepted to be at 2% as of October of 2018. In reality, it's closer to 4% But if we come to a middle ground of 3% that means that even if your savings account pays a whopping 1% return, you are losing 2% of the purchasing power of your money every year. In a high yield whole life policy, you are beating inflation and then some. Also, if you take a loan out on your cash value, you are receiving a loan directly from the insurance company, not from your account. The insurance company uses your cash as collateral. Meaning that if you have $50,000 in cash value in your policy and you borrow say $15,000, you are borrowing that 15K from the insurance co. and not from your account. This means that the cash value of your account doesn't drop to $35K, it stays at $50K
    The money that you borrow will usually have an interest rate of 4-5 percent. So, at the very least the loan is essentially free, and if you earn over 5%, then you are actually earning more in dividends and interest than what your loan is costing you.
    Imagine you own a bank and you are the only customer. If you borrowed from the bank you owned you would have to pay your bank back, but when you pay your bank back, that money is basically flowing to you. Again, not all policies are equal. I have a Universal Life policy from State Farm that I got 17 years ago. I recently borrowed from it's cash value, but they pay so little and charge so much on interest I am not coming out ahead and in fact, am paying out 2.5% of penalty. That's an example of a poor policy. A good policy pays 7% interest and costs you 4 or 5 percent in interest. Plus a non-stock whole Life company is not tied to the stock market, so if the stock market crashed tomorrow, the value of your policy would not drop 1 penny. But a ROTH IRA or a mutual fund or an insurance company tied to the market would lose value instantly.
    There are people that stash millions in cash into whole life policies and then loan out money to house flippers at 10 to 14% all the while earning money off the full cash amount of their policy. It's a beautiful system!

  15. People, I have been in the whole life policy game for a while. Im not an agent. The only one worth buying is whole life, dividend paying, participating from a mutually exclusive company such as massmutual. Do not buy that bullshit variable, IUL, or term. They are NOT guaranteed policies. Term payout is like 2%. IUL and variable you need to OVERFUND and make sure index brings in 5-7% to survive after the 20th year. Whole life is LEGIT, it just takes longer to accumulate if do low amounts. Only very stupid people say BUY TERM and invest difference. The odds of you investing that difference properly is slim to none.

  16. Interesting comments. The negative comments are from the poor people. The man in the video never made one sales pitch btw. Thank you for attempting to educate the stupidest group of people since australopithecus robustus.

  17. Guys …. This leveraging concept is not new to money what so ever. It is used in real estate everyday. It is used to acquire companies every single day. It is preached by financial experts every single day. If you are buying a company, do you use the banks money or your own? Even if you have the money in cash you use the bank. Why, because the interest owed on money borrowed is far less than earnings on a larger balance.

    In other words. If i have a $500,000 asset (cash, house, retirement account) that earns market rates and want to pull out $40,000 annually, I am going to borrow against that account so the $500,000 keeps earning. Example over 10 years. $400,000 borrowed at 6% (max interest rates insurance companies can charge, currently) $400,000 borrowed with $24,000 in interest owed. That $500,000 never saw a withdrawal and at 7% earnings it doubled. My gross account is now a $1,000,000 with a net account of $576,000. The earnings on my gross account paid off all the debt and interest owed on my borrowed account.

    Now if i took distributions on that principal, using the same $40,000 and still earning 7% i would have completely ran out of money in the 14th year. Sooner if the market took a dip. Again, not rocket science. This is used for leveraging stock portfolios, real estate, and now insurance. Successful people use concepts like this everyday, this is finance 101. Stop dismissing people and trolling if you don't know what your talking about.

  18. So I have 100k, and in two years, I have 94k? Making 4%, and when I borrow my own money, you charge me 6 to 8%. The only reason wealthy use this product is to protect themselves from taxes and they have exhausted all other investments. Ugh. Buy a term policy with guaranteed insurability and invst your dough somewhere else.

  19. Lmao what a joker… an annuity is a better way to put 100k into without risk, and that’s not even a priority option.
    Never combine insurance with investments people; they are two separate things that should never mix like water and oil.

  20. There are a LOT of ignorant comments on this thread. Too many people are quick to say "whole life is a scam" without trying to understand how it works. If it was such a bad deal why would banks own over $160 BILLION in cash value life insurance? If someone has a serious question go ahead and post it otherwise you are just a bunch of sheep parroting some "guru" https://www.youtube.com/watch?v=5FqBLNBsi50

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