Can i industry sign banking oregon contract
hey folks I've been working on a big project which has generated a ton of video and I'm still working on getting all of those videos compiled in a relatively good viewable format when I get that finished I'm gonna link to that right up here quick preview of that project a complete remodel of our bathroom and I've got video from start to finish I'll show you how I did it including pouring the countertops you're not gonna want to miss this but in the meantime I have specific requests earlier this week to get out a video on dynamic banking and infinite banking and how we can use those together specifically what I'm gonna go over is how I do it with my findings so what we're gonna go over today is dynamic banking and infinite banking and how those work together to maximize your income there's different ways to approach it also based on whether you're infinite banking policy is smaller or larger than your line of credit that you have access to and it's really neat to see the best ways to make this work and I'm gonna go over that in numbers right after this so stick around welcome to organ cash flow Pro where we're here to help you take control of your finances maximize your cash flow and reach financial freedom okay I'm back got my haircut ready to go let's get into this so the topic is using dynamic banking with your line of credit in order to fund your infinite banking policy this is a great way to maximize your income and increase your cash flow but there's slightly different ways to do it depending on if your policy premium is greater than or less than your line of credit okay so first of all if none of this is making sense to you maybe you haven't seen what dynamic banking is all about yet you can check out this video right here and [Music] I will also link to a video on infinite banking so that you can be all caught up so I'm not gonna get into much on dynamic banking and infinite banking outside of the design of the policies here so be sure to watch those videos and they'll get you all caught up and you'll understand what we're talking about here so here's the basics of it if your policy premium is less than your credit limit or the same as your credit limit on your line of credit then you'll want to make the full annual payment using your line of credit and it will look like this line of credit you're gonna pull money out of that you're gonna put it into your infinite bank paying the premium and then you're gonna borrow from the infinite bank and pay back that line of credit freeing up that full line of credit so the only place you're gonna end up with a loan is right here in your infinite bank policy and the reason we want to do that is because typically the loan interest is lower and you are not obligated to pay it back on any specific time period so there's no minimum payments or anything like that which you do have in your line of credit now we all know with dynamic banking the way we utilize our line of credit the minimum payments don't matter anyways so really the the difference here between whether we are borrowing from the infinite Bank policy or whether we've continued to just borrow from the line of credit has to do with where's the lowest interest rate that we're going to be charged so if your premium is greater than your credit limit then you you want to make as large a premium payment as possible using your line of credit then borrow from your policy as soon as you have cash value available which is usually within three to ten days pay back your line of credit with as much cash value as you just generated and then immediately make another chunk from your line of credit on to your policy borrow again and you're gonna repeat this until your policy is maxover funded for the year and at that point you're gonna proceed to practice dynamic banking with your line of credit to pay off the line of credit and then you want to start working on your policy loan so to reiterate you have your line of credit you're gonna borrow from that put that money into paying your premium on your infinite bank borrow to pay down the line of credit you're not gonna be able to pay it 100% to help me you're gonna free up enough that you're gonna be able to then borrow from your line of credit again to put into your infinite bank and borrow from your infinite bank back to pay down your line of credit and what we end up with is at the end of this your full policy premium is paid for you have loans in your infinite bank and your line of credit is mostly paid off now you're going to practice dynamic banking until it is paid off and you're ready to do it again the next year when your premium comes due you're gonna repeat this every policy period when your premiums are due knowing that with that line of credit you're always going to be able to make that full policy premium the thing that I like about this is that doing it in this manner when you have a line of credit that you can pull from to make those policy premiums it makes it a heck of a lot easier to sign up for the really big annual premiums that the infinite banking system requires and you can take advantage of all the cash flow that ends up running through your accounts all of the income that comes in this is the way to make it so that you get the highest death benefit and you have that ability to funnel as much of your income through it none of this is probably new to a lot of you folks so let's go into the actual numbers because I think that's what you came here for so let's look at what we have here this column is the balance for the line of credit as we utilize it to fund an infinite banking policy this column is where we monitor which direction our transfers are going and how much as we go in and out of the infinite banking in the line of credit this column is your infinite banking policy we're gonna figure a $40,000 a year mech limit that means you can deposit up to $40,000 a year without turning this into a modified endowment contract and all the tax consequences that come with that notice the line of credit is quite a bit smaller than your annual premiums in this column we have approximate cash value after each deposit and as we move our money we track the loan values in this column and in this column we talk about the loan interest that gets paid interesting thing to note is when you do borrow from your infinite Bank policies when you borrow against your life insurance you prepay the interest so we know exactly what the interest is going to be for the next year on whatever amount of money that you just borrowed so we total all this up okay what you'll see is in the first year of this prepaid interest and then when we get to the second year we've got annual interest on the prior balance so that takes this total from the prior year figures out how much interest the company would charge you and for everything we borrowed during that year we're gonna have the prepaid interest just like we did in the first year so you're gonna see that repeat in year one we start off we have a zero balances all over the place okay our goal is to put forty thousand dollars into the infinite banking policy as quickly as we can in order to have the illustration match performance as close as possible you need to get all of your paid up additions in within the first 60 days of these policies so right here we've got a fifteen thousand dollar line of credit we're gonna use all fifteen thousand of that line of credit some of you may have been working with someone who may suggest that you don't max out your line of credit but the reason in this case that we're going to use all of it is because we're going to get it back almost right away within three to ten days you can usually get access to the funds that you just put into it so if an emergency comes up you just have a few days and you'll have money back to your line of credit and your balance will be available so in this case we got fifteen thousand dollars we're gonna put all fifteen thousand into your infinite banking policy so now you can see here these are premium payments we're tracking we paid fifteen thousand towards our premium our cash value is going to end up being probably somewhere around eleven thousand reason being this first payment is going to make all of the cost of insurance payments for the year so you're gonna take the biggest hit so you're gonna take the biggest hit on this first payment you'll see it reduces drastically when we get to the payments after them so here we have your loan value is currently zero but we put 11,000 in there we want to pull out as much as we can since we have to prepay our interest we're gonna prepay about five hundred bucks an interest which means we can pull out about ten thousand five hundred so our loan value we're going to have a loan value of eleven thousand which includes that interest our cash value drops down to zero and you get ten and a half thousand back into your line of credit bringing the line of credit balance down to four thousand five hundred we have a four thousand five hundred dollar balance on our line of credit we are going to then bring it back up to fifteen thousand by taking ten thousand five hundred out and putting it right back into our premium payments so now our premium payments we've got twenty five thousand five hundred into it our cash value is gonna drop down a bit less this time because we paid for most all of the insurance costs here there is a little bit of an insurance cost with each deposit that you make because you are buying paid up additions at this point so our cash value is going to be lower than what we put into it typically by about five percent depends on which company you're using some companies charge more but we have our loan value of eleven thousand and immediately when we see that that cash value is available we're gonna pull it out and pay back that line of credit so in this case we've got another about $500 worth of prepaid interest so we're gonna put nine thousand back into the line of credit our loan value goes up to twenty thousand five hundred and our line of credit is now paid down to six thousand dollars we're going to go up again max it out pull out as much as we can put that 9,000 back into your premium payments which brings us up to thirty four thousand five hundred and premium payments or almost to our MEC limit but we're gonna have to do this one more time cash value ends up around 80 100 we're gonna borrow that again clearly the prepaid interest is not still going to be 500 it will probably be lower but we're just using hypotheticals for illustration purposes so 28,500 is our new loan balance we're gonna pay 7,500 into the line of credit now our line of credit balances 7,500 now we can't deposit more into this account than our MEC limit so instead of going back up to 15,000 we only have fifty five hundred left until we make out so we're going to borrow from the line of credit five thousand five hundred so it brings our balance to 13,000 make our premium payment and our MEC limit is reached our cash value is going to be about 5,200 and we're going to be able to borrow about five thousand of that back out bringing us at the end of this probably it'll probably take about thirty days to do all this transferring back and forth I would guess depends on how quick your insurance company is allows you to make these transactions but let's figure thirty to forty days to do all this your balance is now eight thousand dollars on your line of credit your balance in your policy three thousand thirty three thousand two hundred and that includes all of the prepaid interest that we've made for the year at this point you have not put any of your own money into this life insurance policy into setting up this infinite bank you put any of your own money into it except for a little bit of interest that you've had to pay now you've likely been practicing dynamic banking so these numbers aren't gonna be exactly that the same you you probably are able to pay this a little bit quicker because this balance is gonna be dropping as you're doing your paycheck parking but for illustrative purposes I wanted to show you how this would work assuming no extra payments go in no none of your own money except for in the first two years you have balance left over on your line of credit the rest of this illustration that I'm showing you here is going to be just using the line of credit and the infinite banking policy so eight thousand dollars left on your line of credit you're going to need to practice your dynamic banking get that paid down before your two comes along now you don't have to get it paid down but it makes it easier if you can start fresh and start putting in the full line of credit limit again starting in your to balance on year two or at zero fifteen thousand into your infinite banking concept 12800 coming out 12800 going back into your infinite banking policy 11400 coming out 11400 going back in and okay ten thousand two hundred going into the line of credit 800 going back out into the infinite bank policy this gets us to our MEC limit and six hundred and eighty will be able to pull back out into the line of credit leaving us with a balance this year of four thousand nine hundred and twenty approximately you're gonna see a big difference from the first two years as we get into the policy now because our policy is going to be growing and because of that growth that happens in the background despite all the borrowing we've done against that we're going to get dividends that at the end of each policy year we'll build our cash value so what you see in year three and Beyond we're going to be able to use that same line of credit of 15,000 and it's only gonna take three transfers first transfer for 15,000 and because of the dividend payments and the cash value growth that we that our policy experiences we're going to have about six thousand dollars in there so when we put our fifteen thousand in there remember this is the first deposit of the year that's where all insurance costs come out of so it reduces but when we add that six thousand to it we end up about nineteen thousand five hundred and we're able to borrow all fifteen thousand back out to pay back that line of credit which means we've got fifteen thousand to put back into the policy and again we still have enough cash value we can borrow all fifteen thousand back out to the line of credit and then we have ten thousand available to put into and max out our premium payments for this year mekka limit reached with three deposits okay now over here we've got our interest charges this is our interest charge from all this year that previous year and remember we're paying the prepaid interest on all these loans that we're pulling out and as we go along so you're gonna see the same thing happen in years four five six and seven 15,000 going in fifteen thousand coming out 15 going in 15 going out ten going in ten going out okay so in this scenario the reason I wanted to illustrate this scenario for you is so that you can see without using much of your own money at the beginning you're gonna have to use some of your own money because the line of credit has to get paid down in years 1 & 2 so 13,000 dollars of your own money that you paid back using your dynamic banking method throughout the year before your next premium is due without putting any more of your own money than that 13,000 by the end of the seventh year you're gonna have about a forty-one thousand dollar balance in cash value that's available you put 13,000 of your own money in everything else was borrowed there's still a big loan out here in your policy but you do have cash value in here that's available for you however you need to use it remember you didn't do anything to help this along except in those first two years now if you have a higher line of credit than 15,000 and you do a $40,000 annual premium you're gonna be able to get away without doing any cash out of pocket in those first two years you just need a higher line of credit balance compared to your premium payment so these are definitely things to take into consideration if you want to do something set up like this but you guys are smarter than that you don't want the debt you practice dynamic banking in your life and you just
ant to use something like this in order to maximize your cash flow so let's look at what happens if we do a little bit of dynamic banking each year in between policy premium food everything else is going to be considered to be the same except we're just gonna do some dynamic banking after those first 30 or 40 days so that we can throw a chunk at this loan value okay and we're gonna do that on this sheet so if we take a look here on this sheet we still have the same line of credit we're gonna go through the funds transfers and you're gonna see a big difference after the first year okay everything's gonna look really similar in the first year except right here that $6,000 chunk goes into your infinite bank policies the pays down your loan by $6,000 and that money turns into cash value and so that's what happens when we pay back our loans it works just like your checking account or a savings account okay every dollar you put in there to pay back your loans is going to be available to pull back out again should you it works just like a line of credit in this regard except you're working on the positive side of the balance sheet now the advantage of paying that $6,000 off is we're not gonna have that annual loan interest on this side but we're still going to qualify for the dividend payments that the policy is generating so we're basically just sloughing off this interest cost which is a drag on the policy performance now you'll see in year two because we paid that six thousand back we now have a higher balance available so when we put our fifteen thousand in we can actually pull 15,000 out right away this allows us to pay into this just like we did in years three through seven in the previous example now take a look here we got another chunk the end of year two going into the infinite bank that's gonna pay our loan back by six thousand cash value goes up and we're gonna do the same thing in year three at the end of the year - hitting of your three end of year 3 and of your for end of your 5 and end of year 6 and end of year 7 so by going through this method what we see is a substantially lower loan balance at the end at the end of year 7 and about 88,000 almost eighty nine thousand in cash value now that's a pretty big difference from what we did in the first scenario in the first scenario we paid 13,000 out and we had about forty thousand dollars in cash value available and in this scenario we've been making we've been throwing chunks at it using our normal dynamic banking method to free up some cash so that you can do a chunky chair it only paid eight thousand at first year for the line of credit and then we managed to do chunks of six thousand dollars once a year for the next seven years and we end up with about eighty nine thousand in cash value and you can see this is not a type of get-rich-quick scheme we're kind of creating a little bit of money out of nothing okay but the best way to utilize these policies is as an infinite bank to get the commercial bank out of your pocket right so if we can't get rich quick on this why are we doing this where is the advantages of going through this method this is about cash flow this is how we maximize our cash flow that doesn't mean we're going to see two hundred percent returns what you see in an infinite banking policy as you see a four to six percent return on your money over the long term now the more we go through this the better the numbers get but if you're only gonna do it for two or three years skip it and this isn't gonna be for you this is long term it's just like starting a business and each business is going to run more and more efficiently and it's going to be able to generate more and more returns for you but let's quickly go over the advantages of this number one when you use when you switch to the infinite banking method you get freedom from the banks you don't have to ask to borrow money you don't need to provide credit you don't you don't need their permission you know for small business owners like myself you don't have to bring in all of your financials every time you want to get a loan for something which as you know is a pain in the ass when you can just call up and say hey let me have some money like you do with your lines of credit when you can just ask for the money and it comes to you such a freedom to be able to do that that's what the infinite Bank policy provides you it also provides you guaranteed long-term growth like I said we can expect a four to six percent return four percent is guaranteed by contract so when the rest of the country ends up in negative interest rate territory like we're seeing overseas right now there's other countries outside of the US who now have negative interest rates that means when you put money into the bank you have to pay them to hold your money in this case you're guaranteed four percent every single year now what else do we get with that it's life insurance so we get a death benefit and oftentimes we get living benefits with that in this case for $40,000 a year policy you're probably gonna get a million three million five million eight somewhere around there worth of death benefit on day one that's huge where else are you going to be able to start creating money pop nothing and if a tragic accident were to happen you're able to leave your heirs with a nice chunk of change to remember you or a terminal illness you have access to that right away so that's what living benefits are if you have a million-five living benefit if you have a terminal illness that says you're going to pass away within the next two years you have access to that full death benefit without actually having to die so your family doesn't have to go bankrupt trying to pay hospital bills and you trying to do everything you can to survive they're not going to be broke at the end of it you'll be able to tap in and use some of those funds while you're still alive it's awesome it is a great benefit to have and that's one of the advantages of funneling your money through your infinite banking policy because the side benefit of that is every time you put money into your policy your death benefit goes up to other benefits for doing it this way you've maximized your cash flow just like when you use your lines of credit for dynamic banking getting every single dollar that flows through your hands into your policy gives you all those other benefits but it also gives you compounding growth on everything that you put into that policy and of course flexibility these policies have tons of flexibility built into them in this case and went out seven years on this example because at seven years you no longer have to make any premium payments if you don't want to you can but you don't have to what we do is we have the option to turn this into a reduced paid up policy which means no more premiums do but you still have all the death benefit you bought to date and you can still utilize that policy as your infinite banking policy borrowing from it and repay in those loans you just can't put any new premiums back into that policy make sense that's the flexibility of these policies they're really great and if done correctly designed correctly and funded correctly at the beginning you can't blow these policies up so all the guarantees that come along with it along with the ability to turn off those premiums means that you have the ultimate flexibility in utilizing these policy so I hope that made sense to you folks one thing I didn't get a chance to do is a spreadsheet showing what it looks like when your policy is smaller than the premium payments that are due but I think you can see how that works right here it would basically be just like the first payment you put 15,000 in if you're a premium payment is $15,000 for the year you could put pay it all in one shot and then you got 11,000 paid back into your line of credit you got 4500 that's left over to pay down that line of credit it ends up being a really easy way to increase what you can do comfortably with an infinite banking policy when setting it up so that you can absorb more of your income now the ultimate goal if you've been digging into infinite banking at all the ultimate goal is to get all of your income every year flowing through your policy and then you pull it out as you need it that's really hard to do because one the insurance companies don't really like you to be able to do that they limit how much death benefit you qualify for and your death benefit limits how much you can put in is premium feature so the challenge is is you have to build that up over time and this is one way to do that if you can get your first policy started as soon as possible preferably and be younger but if you're just getting around to it the next best time is now so you get your policy started you get comfortable with as much as you can get into it and then if you have the ability to start putting more into it we can open up another policy or you can reapply with this policy to get it increase but it's typically easier to just get a new policy you can do that with the same carrier you can do it with a different carrier it just depends on your situation and we can look at all that and figure out what's going to work out best for you now my personal policy the most recent one I got is with mass mutual it's got a thirteen thousand dollar annual premium and I have a lot more than that available in my home equity line of credit that I use so what I do is I pull out the thirteen thousand from my line of credit I make my premium payment and I was able to pull out immediately about ten thousand five hundred put it back into the line of credit and then I just have twenty five hundred to pay down using dynamic banking and because I use dynamic banking for a lot of other things as well I just leave that ten thousand sitting in my infinite bank and I'm gonna continue to use the dynamic banking and when I end up with some extra funds after I pay down my home equity line of credit then I will transfer that over and start paying down my policy loan so for me having that line of credit available means I don't have to worry any time of the year when one of my four policy premiums comes due I can just pull from the line of credit make that payment and not have to worry about it if I need the cash I can just pull it right back out of those policies so that's how it works for me so if you have any questions that's it for this one the whole goal of this again is to be able to maximize your income by utilizing the dynamic banking method with the line of credit and paying those infinite banking premiums efficiently I hope this helps you out when I finish that project I may do it before then the project has really taken me a while to get all that video done well I'm gonna talk about in my next video how you can use your 401k or your IRA or basically any of your retirement accounts and fund your policy using your retirement accounts without actually withdrawing money from your retirement accounts so stay tuned if you have any questions about any of this leave them in the comments section below happy to help you out if you want to chat about any of this you can click the link up here get to my phone call video and sign up on my calendar link so we can have a chat I'm willing to give twenty minutes of my time to any of you folks on the phone you just gotta sign up at that calendly link and i'm happy to help you out any way that I can be sure if you found value in this video hit the like button subscribe to the channel I really appreciate you guys spending time with me today have a good one now go maximize your cash flow you [Music]
