Dave Ramsey Right: Life Insurance is NOT a Good Investment

Life Insurance is not a good investment according to Dave Ramsey. When you think about it, life insurance is not an investment alternative but a banking alternative. Chris Kirkpatrick reveals how you can position life insurance in your life to give yourself more security, guarantees, opportunity, control, and abundance in life.
UPDATE: I recently filmed a video on HOW TO PROPERLY STRUCTURE A WHOLE LIFE POLICY. I have received a lot of questions about this concept. Here is the link for that video: • How To Properly Struct...
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0:00 - Introduction to why Dave Ramsey is Right about Life Insurance
2:10 - Life Insurance is NOT an Investment
3:22 - Life Insurance is a banking alternative, not an investment
4:15 - Where Dave Ramsey get's it wrong
5:10 - I no longer sell life insurance
5:50 - Life Insurance is a bank account on STEROIDS
7:20 - Life Insurance as a banking alternative example
9:28 - Living Benefits inside of your Life Insurance banking account
11:15 - How to use Life Insurance as an infinite banking policy, abundance bank, And Asset
15:50 - Real Estate Example Using A Banking Policy
21:00 - Additional Benefits of a properly structured whole life policy
23:15 - Banking Principles you need to implement in your life
24:00 - See link in description for Cash Flow Webinar Link
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🤔 ABOUT LIFE180 😃
Chris Kirkpatrick launched LIFE180 as a solution to a problem. As the director of business development for a Fortune 1000 life insurance / broker dealer, he became disenchanted with the financial industry because of the lack of education provided to clients and how "financial advisors" were really just glorified sales people.
So... LIFE180 was launched to help give relevant financial education for people to create wealth. Along the journey, LIFE180 has evolved. Chris quickly realized he was passionate about not just helping entrepreneurs on how to leverage their money, but how to build their businesses.
Over the past 5 years, Chris has spent thousands of hours mastering the art of online business development for himself and clients. In 2020, LIFE180 morphed into a full service online business launch and development agency. If you need any help creating more revenue or generating more leads online, LIFE180 can help.
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*All content in this video is for educational purposes only and is not to be interpreted as personal financial advice.
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[@LIFE180]

Text IBC to 26786 to learn more OR Visit kzbin.info/www/bejne/e3Oqdp6cebRkqNk

[@PHILosophy1025]

Show me the research the stock market averages less than 1% when accounting for inflation. I am curious to read that article

[@motoryzen]

Yeap...I too call bullshit here

[@monitca2bless]

Thanks so much, very informative.

[@KK-nk4uv]

It's sad that u r trying to help people use tax n debt to their advantage n still get an argument instead of learning how to... U r a good man brother

[@AndreaGarcia-en1nq]

Hi! Thank you for this video i am a newbie in terms of investing and all ecomonic things. Now i have a question, i see a very important difference between this two comparisons, i am not a dave fan i like to see every option and think for myself, and i would like someone to correct me if i am wrong but i see a very important difference between this two and is that if i save and put money on the bank, and then buy a property and then lets say on year number 3 i dont get to rent for the whole year or part of the year, what happen if i dont rent the property for a year? Or a couple of months? And then i can no longer pay the debt? Thank you i am very curious!

[@LIFE180]

If you take a loan against your policy to purchase a real estate property, that loan is unstructured. Meaning, you can make payments or not. It won’t hurt your credit. I would always advise paying the loan with cash flow from the property, but it is not going to be a killer if you have some months where the property is not cash flowing.

[@2009bowling]

good video thank you

[@telwingeorge]

thank you putting things into perspective. And I agree. Just a question though. 1> If someone isn't smart enough to make dynamic investments with cash values, would insurance still make sense? 2> Am not sure if I missed the part about tax benefits, I've heard it but how exactly does it work?

[@ItsTrainerMilt]

Amazed at so much negativity. Thanks for being clear & concise. I agree. This is a holding tool with garuntees to use against the banking system that borrows against your money but pays you nothing in return. Everyone wants to face this off against investments.

[@LIFE180]

Unreal that people who watch this video still come away thinking of it as an "investment" in the classical sense...

[@cleiagrubb]

3:07 "If you structure it properly". Can you expand on what that looks like?

[@LIFE180]

Cleia Grubb kzbin.info/www/bejne/mqmsiZaAg9F0jKs

[@Devin82m]

Thanks for the explaining, interesting. By the way, through is not spelled "threw" at 21:15 minutes. ;-)

[@LIFE180]

haha, thanks for noticing that. My V.A. must have missed it.

[@42dunbar]

So at year 20 the $400k in cash value is only returning $1595 a year in interest/dividend income? That’s a horrible rate of return when an FDIC insured high yield savings account yielding 2%-2.35% per year would be generating $8000-9400 per year in interest.

[@ckirkpatrick13]

Yes...when you look year 10 on, the account is making over $10k per year with no new money going in. That is on $276k (about 3.7% return that year, but it gets better and better year after year from there). In addition, you will notice the death benefit is increasing as well. You can't look at only the dividend, that does not account for the returns from the general account as well - look at the net surrender value year after year. For instance, year 20 to 21 goes from $386k to $399k - that's $13k (4.5% return). Plus that is TAX FREE - you would pay taxes on the 2.3% you earned in a savings account (which would only be $6500ish - taxes at 25% average = $4,933 or only 37% of the return in the life insurance policy). Not to mention, the taxes that would need to be paid on inheriting the saving account, the taxes paid on an annual basis moving forward and the opportunity cost on those taxes. In addition, you don't have the extra almost $500k in death benefit you have inside the policy. PLUS, there are accelerated benefit riders that can help with medical bills from the death benefit if you become critically, chronically, or terminally ill. Anyone who tries to compare a whole life policy to a bank account and is still left believing a bank account is better either needs their head examined or has not done complete research.

[@workout443]

My father passed when I was 6 years old, I wonder if she thought it wasn't a good idea (no matter what type she had)?

[@workout443]

*she being my mom

[@LIFE180]

Having coverage to take care of family is certainly a must.

[@JasonBuckman]

Term insurance is definitely a good idea if you have people depending on your income.

[@justinacase2623]

Yes, insurance is needed when children are under 18 or 21 , but to have a overpriced policy when the children are 40 ish, not wise

[@marthadiaz2095]

What happens to people who just don't have $65K to place into this policy? Can you break it down for an average lower class person. Say, annual income of $65k but trying to maximize that $10 or $15K sitting in the bank as "emergency fund". thanks

[@LIFE180]

Martha Diaz I will work on putting that together for you - great idea

[@alphateamfinancial]

Dave must have watched your video he just tweeted "Whole Life Insurnace is the payday lender of the middle class" 😁 Great stuff. New follower! :)

[@LIFE180]

Thx man! Sad how contradictory Ramsey is... I have more content coming out soon on that.

[@TornadoOfSouls777]

This sounds very similar to Doug Andrew of Live Abundant or Bank on Yourself with Pamela Yelon...what is the difference?

[@LIFE180]

It's very similar. It's more about execution and how you utilize it. Bank on Yourself, Live Abundant, I actually call it Abundance Banking, The And Asset, Better Wealth, Cash Flow Banking. It's all the same framework. It's more about the systems and coaching behind the process. I do a lot of work with entrepreneurs and Real Estate investors. Check out my video that launched today on how to buy real estate with your whole life policy.

[@LIFE180]

I would also add that people like Doug Andrew use Indexed Universal Life, so their focus is much more on getting an ROI out of the insurance policy (which I think is dangerous) and then focusing on tax free income at retirement. Our focus is on using the insurance policy as the foundation to your financial life, then leveraging the policy to accelerate your growth in your business or real estate. It may seem small in difference, but it is significant

[@QuyLe408]

i'm about to open a policy for my 1 year girl through f&g. my agent quoted me $90/ month. This will be my second policy with them, as i have one on my own with a 400k $252/month. what do you suggest?

[@LIFE180]

400k seems like a lot of life insurance for $252 / month if the policy is optimized for cash growth. Email [e-mail] if you want me to review policies for you.

[@JasonBuckman]

I agree with needing more than six months for an emergency fund. One to two years.

[@travis10466ny]

Why comparing insurance to a bank account? confuse

[@LIFE180]

I am comparing whole life insurance to the returns of a bank account because it is infinitely more relevant than comparing to a normal investment (like stocks or mutual funds) like most people do. If you look at the benefits and guarantees of a properly structured whole life policy and compare to keeping your money in a bank account, it is a no brainer.

[@OrangeVilla]

@@LIFE180 Is there a video on properly structured WL policy? You keep mentioning it but what exactly makes a WL a good one? How do you know an agent is not just pushing a policy for highest possible commission? I’ve been burned before like many others. Thanks!

[@LIFE180]

@@OrangeVilla I did a video, how to properly structure whole life insurance. Check it out on the channel page > popular videos. It's #1

[@mrkinla]

Thanks Chris, for your video. I'm a Dave disciple although his one-size fit's approach sometimes concerns me. I ran across this strategy last night and barely slept after watching multiple videos. I have thousands in a saving account for an emergency fund and am earning zilch, and was considering a mutual fund. However, I like the idea of having an account that I can treat like a personal bank. Speaking of eventual liquidity, how are withdrawals made and what affect does that have on the account? As a single guy with no debt, I'm less concerned about the death benefit, just looking for a good liquid retirement vehicle (other than 403b and Roth). Can withdrawals reduce the death benefit?

[@LIFE180]

Thanks for the comment. As far as liquid cash goes, there really is nothing that beats a properly structured whole life policy. That said, where people like to beat the strategy up is in year 1-3 or 1-4 depending on the persons age and costs of insurance. Year 1-3 or 4 will always have the bank account coming out slightly ahead... But a whole life policy is a long term strategy and when you look at it from that perspective as a banking alternative, it's probably the biggest no brainer in the world. There is a lot to your question, and while I don't sell, I would suggest getting on the phone to talk as it is hard to explain in text. Use this link if you wanna have a conversation: calendly.com/chriskirkpatrick/life180 Withdrawals and loans would reduce the death benefit, depending on how you take them. However, there is a lot of education around HOW to actually use your money in your policy most efficiently. And once again, it crushes ANYTHING a bank account would do for you over a 4+ year period. Happy to talk if you want.

[@syedimtiazabbashussain4913]

Let me clear over here that life insurance is not an investment. Life insurance is primarily a family financial protection in case of disease, disability or death, and secondary as an investment. So life insurance financially support a family during life time and after death...... a perfect financial planning.

[@LIFE180]

Agreed. The title was a bit click baity...lol. I would say that life insurance when properly structured is more of a savings alternative than an investment. Plus it gives all the benefits you mentioned

[@goldtouchhc8897]

is there a canadian life insurance company that's similar to mtl company? I think that's just american?

[@LIFE180]

GoldTouch HC I don’t know the details of Canadian Life Insurance opportunity. However, if you own property in the USA or have another insurance interest here (possibly own a business), this can apply to you.

[@luisabiera]

Who’s advice would you take - Dave Ramsey’s of Warren Buffet

[@LIFE180]

My thoughts exactly

[@DoveofHope2]

"An argument from authority, also called an appeal to authority, or argumentum ad verecundiam is a form of defeasible argument in which a claimed authority's support is used as evidence for an argument's conclusion. It is well known as a fallacy, though it is used in a cogent form when all sides of a discussion agree on the reliability of the authority in the given context."

[@fuNaN89]

Erm...Warren Buffet OWNS insurance companies

[@thomasvee329]

@@LIFE180 How about a professional response like: "Well, there's a lot to be learned from both of them!"

[@LIFE180]

fuNaN89 Dave Ramsey owns a company that benefits from term insurance sales....

[@marcellabarnes9025]

How about index products

[@vitech5631]

Great question, not all Whole Life Ins. are the same. For me the best is UNIVERSAL INDEX LIFE Ins. No taxes on your money growth either.. I will take this..

[@samsciascia4004]

Index products are great if you structure for a minimum death benefit max cash value. Increasing insurance and switch to a level around 65. I love the product but I don't like it for banking.

[@justinacase2623]

I bought a "paid up" policy. They lied. I filed suit, won. Cashed it out. Doubled it in two years, it is a scam. People get confused what life insurance is for. The object is to become self insured at some point in your future.

[@ledflaplin2001]

Name the company!! What product did you buy?

[@justinacase2623]

@@ledflaplin2001 it was a paid up whole life policy, they were the rage in the 90s. All the major companies sold them , Met Life , Prudential, I had the paperwork that showed in 7 years it would have enough in the policy to pay the premium. They called it vanishing premium. But they lied, sent me a letter saying I would owe like ten more years on it.

[@ledflaplin2001]

Azzo Squirrel ok, got it. What company did you sue?

[@justinacase2623]

@@ledflaplin2001 due to the settlement I cannot disclose that, sorry.

[@ledflaplin2001]

Azzo Squirrel you think a company is going to know who Azzo Squirrel is from the Internet? Sounds like bullshit man.

[@markf.2050]

What is the rate of return on your cash value when you "account for inflation?"

[@LIFE180]

What's the rate of return in your bank account or other safe money you need to have as an emergency fund when you "account for inflation" long term (IE: don't give me the BS answer that you are earning 4.5% right now in your savings. I'm talking LONG TERM expectations)

[@markf.2050]

@LIFE180 Dave Ramsey may have stated a possible return of 12%. I agree that may be optimistic, but your video "called BS" and stated that after inflation the return would be more like 1%. That same inflation also affects the rate of return on cash values so it is a fair question to ask what your rate of return is under the same circumstances. It is telling that you respond with a "what-aboutism".

[@LIFE180]

@markf.2050 🙄🙄 STOP comparing whole life to mutual funds. They don't have the same risk profile. If you're telling me you don't believe having an asset in your portfolio that gives... 1. Bond like returns 2. Muni bond like tax treatment 3. And money market liquidity ...is worth you while...then sure. Whole life isn't for you. Until then, STOP with these uneducated comments until you are willing to actually learn what you are talking about or I will block you because now you are just annoying me and wasting my time. And that is one thing I won't do.

[@seleneerazo4166]

But if I borrow from my Index Life Insurance policy, I get tax, don't I? If yes, how much would the interest rate be?

[@LIFE180]

You're not going to get taxed borrowing from either an IUL or Whole Life policy. The interest rates vary by company and with markets. Watch my video on IUL vs Whole Life Insurance. It will help explain.

[@seleneerazo4166]

@@LIFE180 thank you! So, according to what I understood the maximum rate of return I can get by saving on an IUL is 4% and not 12% like some agents are telling me. I have to take under consideration insurance fees, and other monetary obligations, correct?

[@billyleeho3]

I didn't hear anything about all the "fees" that Dave Ramsey hates in your example...?

[@ronniepayne100]

The fees he is talking about is when he says you lose some liquidity the first few years. After the few years all of your money basically goes straight to the cash value.

[@PepeSi7via]

What happens when I cancel a policy with a substantial cash value? Can my cash value exceed my death? What happens when I take a loan out on my cash value and can't make the payments back? Is this really just a high-interest banking account but you have to do the paper shuffle so you are protected from lawsuits because it's not technically your money anymore?

[@LIFE180]

First of all....why would you want to cancel a policy once it is mature and has a ton of money in it? First, most WL policies are structured horribly and designed to make the agent a ton of commission and not allow for efficient cash accumulation. That's not what I would suggest or coach. You need to make sure you are structuring the policy for max cash value. Second, stop comparing to an investment and start comparing to a bank account. I am a believer you need 2 years of income in a liquid, guaranteed, accessible account. This is NOT an investment because there is no risk when you do it properly. All funds are guaranteed. So stop comparing it to an investment. Third, it is a long term strategy. Yes, a savings account will marginally out perform a properly structured WL policy for the first couple of years. Marginally. But you get a lot of ancillary benefits with the WL policy, that in my opinion make it very worth it. Fourth, once the policy is past 5 years old, the year over year guaranteed ROR is better than any fixed product you will find. When you get past 10 years, it is better than almost any other asset you will be able to find. PERIOD. Remember, if you do it properly, you are never taking "a loan out of your account". It is a loan against your account. You are using your account as collateral. The strategy simply provides liquidity, guarantees, and options. That's why it is a great strategy for entrepreneurs. The rate you will pay is FAR lower than other non-secured debt so that will help greatly. The terms for repayment are flexible. There are no tax consequences unless you are talking about "withdrawing" money from the policy, which is the worst thing you could do anyways because you interrupt compounding. The money once in the policy is absolutely still your money. There is no paper shuffle to avoid lawsuits. I am not sure where you got that or what you are speaking to? Maybe if you elaborate I can speak to it a bit? Maybe I don't understand your question / statement?

[@travis10466ny]

You canceling your cash value insurance, the company pays out the cash value. If you don't pay back the "loan" the company takes it from your death benefits so your family will receive less

[@LIFE180]

@@travis10466ny Sure, if you don't pay back the loan, the insurance company takes it from your collateral. However if you were to simply spend that from your bank, you have nothing either. In addition, if you set the policy up, the death benefit should be increasing along with the cash value. So when you take a loan against the policy, even if you don't pay it back and you die, the spread will still be significant.

[@rscully5]

Still dont understand this concept. Is it legal? Can you borrow money just to live and then pay it back every month?

[@LIFE180]

It is completely legal. You can access the money for whatever you want. Business, investments, vacation, etc...

[@lomax742853]

if you have the right vehicle to work with, where it's yours and you don't have to pay it back.

[@jerryk3280]

There is nothing wrong with investing in stocks given the right guidance. Life insurance could even be a worse risk if you don't read the fine print.

[@AlabamaCreek33]

Very true. If one don't understand or the their financial guy or life insurance sales person don't properly explain to them how their policy work, don't do annual reviews, and don't keep in good contact with their client.... That is how policies get laps.

[@nwow9988]

It's such a ridiculous comparison! Of course when you are comparing any financial product to a savings account in a bank, it's always going to outperform the very low interest bank account. Dave Ramsey main goal is wealth building and I am sorry but permanent life insurance is not the best way to do that. If you need insurance protection than term insurance is the right way to go since you are only paying the morality cost for the insurance. Also, term insurance does have clauses for terminal or chronic illness as well. One of the best life insurance contracts you can get is through National Life Group since all their products have a 24 month terminal/chronic clause compared to a lot of other companies that offer 12 months. The money you save with term life insurance can be invested in a lot of different ways, but mutual funds is definitely one of the better options. I personally want to invest my money myself instead of giving it to a life insurance company that is going to offer you a very low rate of return. You need to remember that life insurance companies need to make money as well.

[@LIFE180]

Not a ridiculous comparison at all, actually. And if you are implying I am suggesting you create wealth through whole life insurance, you are missing the entire point. Whole life is an extremely effective storage vehicle for your cash. Use it to keep your money and wait for investments that fit what your needs / desires are. Personally, we like our businesses and real estate. It can be different for anyone... As for National Life Group & LSW, I am very familiar...I was the Director of Business Development for them for 3 years. Their term insurance is a very good product, yes.

[@Thisissalsa]

What is a "dump in?" From 7:13 to 7:40, your explanation is VERY CONFUSING. I'm taking it as this 38 year old male had to pay $50k for two years "dump in" before he could get benefits?

[@LIFE180]

The dump in is paying a higher amount for a short time. Yes, he put in $50k on top of the $15k premium for the first 2 years. However, he doesn't need to wait two years before getting the benefits. He can have access to the Net Surrender Cash Value starting year 1. Does that make sense?

[@travis10466ny]

borrowing my cash value the interest goes to the company not me. And if its my money why do I have to pay it back anyway?

[@LIFE180]

You are borrowing against your policy, using the cash value in your policy as collateral. If you use the right companies, you will pay an interest rate for the loan (say 5%), but you will also continue earning interest on your cash value (say 6.25% current dividend rate). Therefore you have a net gain of 1.25% on the money you are borrowing. That beats a bank any day. Plus if you watch my video on how to make major purchases ( kzbin.info/www/bejne/hZzHm3xtrdt5Zq8 ) you will see the power of what I am talking about.

[@travis10466ny]

@@LIFE180 still dont understand how you compare a bank account to insurance. A bank account is not an insurance. And we do not borrow from the policy we borrow our own cash. I can not take 10k from my face value. But i thought you tell the truth to us.

[@LIFE180]

@@travis10466ny First off....there are several ways you can use the cash in your policy. 1. You can withdraw from it (which I would never suggest). 2. You can take a loan against the value of your policy. The one thing you can NOT do which most people don't understand, is borrow your own money. If that is what you think is happening, which based on your comment is the case, I can see why you think it is stupid. You borrow from the insurance company up to the amount of cash value you have in your policy (collateral capacity). Travis, here is the difference between you and I. I have had all of my licenses. I began in the business selling mutual funds, equities, and with a large focus on qualified plans. Then I was exposed to this. I was skeptical. But when you get to the actual math of it, it blows everything else away. The problem is, you are too concerned about proving a point to me about something I understand more about than you do. There is nothing on your side of the equation that I haven't dealt with....I did it for 10 years... If people stop being emotional about this and look at the math, it'll open your eyes. The reason I compare to a bank account is because when you properly structure a whole life policy, the guarantees inside the policy resemble a savings account more than an investment. Yes you get insurance as well, but that essentially makes it a bank account on steroids. It's liquid, it's guaranteed, and you retain control of your money (not tied up in qualified accounts). I would encourage you to stop thinking why it doesn't make sense and asking how might it work....?

[@KK-nk4uv]

People simply don't understand these 3 things that make rich people rich... 1) Compound interest 2) Debt(but the smart people call it leverage) 3) Taxes Usually people pay for debt n taxes but smart people/the rich people earn from it

[@russellwinfree7587]

KK 47 I could not agree more, biggest key is making interest your friend not your enemy!

[@Mraguirregra]

is this a IUL?

[@ckirkpatrick13]

No, it is whole life insurance

[@CPAinc2011]

why not use a max funded IUL to do the same?

[@AlabamaCreek33]

With whole life after the insured dies the cash value goes back to the insurance company but the DB still goes to the beneficiary vs the IUL both the DB and cash value goes the beneficiary. Neither is good or bad, it just depends on what the client want their legacy to be.

[@AlabamaCreek33]

@Brent Dunn They are different IUL's like they are different MF. There are IUL's that have no caps and still comes with floor to prevent from losses. It's always great to have multiple options as far as when it comes IUL's with higher caps.

[@AlabamaCreek33]

@@basilcjames No, I just explained the difference between a whole life (cash value stays with the company when insured dies) Vs an Index Universal Life (the cash value goes to the insured beneficiary, not the life insurance company).

[@arieassouline7486]

Please explain how a so called "financial planner" aka life insurance salesmen, would ignore your individual goals and needs in order to sell you a $900 a month insurance policy (split btw 2 people) yet have you go into the red every month? And the solution to that problem is to change your tax deduction and to stop contributing to your 403b which at the end of this year has screwed you over in taxes. If you need liquid cash to purchase property within a couple of years how will this help you except to keep this money out of reach when you need it.

[@LIFE180]

Hi Arie, I cannot speak to why a life insurance sales person would do that to you. Make no mistake about anything I ever say or make videos about. Like everything, there are good people and there are unethical people. I don't care what you are involved with, there are people who will try to take advantage of you if there is money involved. There are plenty of financial advisors on both sides (mutual fund and life insurance) who would sell the wrong products to hit sales goals. It's the sad truth of the industry, which is why I left the industry and dedicate a lot of effort to educate people on financial strategy. As for the changing of tax deductions and stopping the contribution to the 403b, I don't have an answer for you - I was not in the room when the person was giving the advice, nor do I have any insight into your personal situation. I am sorry you were taken advantage of though. The only thing I would encourage you to consider about any type of qualified plan contribution is this: IF you are NOT getting a match, qualified plans don't make a ton of sense. People think they are getting a tax deduction when they contribute because we file annually and think very short term in regards to tax benefits. However, it is very important to think of your tax liability across the span of your working career. When you contribute to a qualified plan, you are not getting a deduction, you are getting a deferral - likely to a time when you will have less deductions, will be making more income, and your overall tax bracket will be higher, which will cost you more money... Once again, I know nothing of your situation,, but that principle is one that most planners miss because they are compensated by you buying mutual funds. To respond to your final sentence... If you properly structure a whole life policy, you will have significant liquidity immediately and especially within the first couple years. Then if you want to purchase an investment property, you can do so. I would suggest watching my video on how to properly structure a whole life policy. I cover 4 different ways (good and bad) that agents are selling and what to watch out for....and more importantly, how to set yourself up properly. kzbin.info/www/bejne/mqmsiZaAg9F0jKs I hope that helps. Best of luck with everything. It sounds like you had a bad experience and I hope things turn around for you.

[@christophergabba5431]

I appreciate the time put into this video, but any video starting with: "I'm an amazing person, I'm super successful, and you should trust everything that I say. Full disclaimer: I do sell life insurance." does not increase the credibility of what follows. Dave DOES like life insurance, he tells people to get term life because it isn't a scam. And I am getting >12% returns on my mutual funds. I don't know what mutual funds you are investing in, but a 1% average? Dang you didn't look hard enough.

[@AlabamaCreek33]

I'm a licensed financial agent as well and am too getting 12% returns and at times higher! It's always better to have multiple financial options when it comes to any account. I would even go as far to deal with a non-captive financial firms as well that doesn't own any or their financial products.

[@sidneyoutlaw39]

What mutual funds are y'all invested in? So I can invest into it too

[@butterfly-pf8lj]

Sidney Outlaw people are greddy they dont even want to show u

[@ledflaplin2001]

Sidney Outlaw American Funds

[@wennieseabrook8496]

very true

[@dylanames2992]

Could of sworn my 10 year average on my mutual funds was 11.67percent

[@LIFE180]

11.67%, but you need to take all sorts of variable into consideration. Taxes for starters. Plus the fact that it is the real rate of return that matters....not the average rate like the mutual fund companies have you focus on... Think of it like this: If you have $1000 and invest it in year 1. The market goes up 100%, what is your return? 100% Year 2 comes and you start the year with $2000. The market suffers a 50% loss. What do you have left? The $1000 you started with. So what was your average? You started with $1000 and at the end of 2 years, you have $1000 (not even taking fees into consideration here). Most people say 0% is the average. But, that is the real return. Not average. The average is simple: you have a 100% year minus a 50% year. That is 50% / 2 years = 25% average. See, the average is a way they try to get you to buy into their scam. You take the risk, they make the money and try to convince you that a properly structured whole life policy is bad... In fairness, they shouldn't be even talked about in the same conversation because they are designed with completely different goals...but most people have a hard time understanding all of this... But focus on REAL not AVERAGE returns. Or you will wind up broke...

[@coltengafford9869]

LIFE180: Leading Into Financial Excellence I am a licensed investment advisor & insurance agent. I 110% support this comment. Average return doesn’t mean a damn thing. America is just stupid. lol

[@LIFE180]

Thank you, Colten, for a little sanity in the crazed Dave Ramsey conversation :-)

[@butterfly-pf8lj]

LIFE180: Leading Into Financial Excellence your right. In the begining i started great with my 401 k and then i staeted lossing money. How do i get out of this 401k and put it where i will not lose face value

[@BigRed2]

LIFE180: Leading Into Financial Excellence Taxes lol? let’s talk about the ins cost and how if you want to use your own money you pay the ins company 5-10% in interest on your own money ! lol, plus you build no cash value for 2-5 years while the ins company banks a lot , you’re lucky to brake even after 10-15 years but then your ins cost which rises every year starts to be so high it eats away your principal lol🤣what a scam

[@LIFE180]

I have been getting a lot of questions about how to PROPERLY STRUCTURE A WHOLE LIFE INSURANCE POLICY, so I filmed this video to help: kzbin.info/www/bejne/mqmsiZaAg9F0jKs

[@victorbarton3039]

Many WL policies pay both the cash value and death benefit. Great video. This is exactly how LI should be used!

[@cookitketo3592]

I don't actually think this is how IBC works...

[@travis1240]

Nah not for me. Too much complexity and where there is complexity there are landmines. Why is it that the only people who suggest getting whole life and borrowing against it are insurance salesmen?

[@LIFE180]

Go to LIFE180.com I am not licensed anymore. I was but now I coach entrepreneurs to build their businesses. You can see my site LIFE180.com - the strategy is great for entrepreneurs and Real estate investors.

[@darrickharris5534]

If you utilize or invest in any financial tool it comes with complexity. Investing in the market is one of the most complex things there is which why there are money managers that handle investing for you. The major difference between a money manager and whole life insurance is that money managers cannot make any guarantees whereas whole life insurance can. Under the hood you are investing in some of the same securities. Question is do you want guarantees or not?

[@davidstinnett3889]

In a permanent {whole life) policy, you are not buying a level (much less an increasing) death benefit plus a cash value! For example, it is impossible for the same premium that covers a person at age 25, to cover the same person at age 55. This is because the risk of the claim occurring has obviously and significantly increased with every year's increase in age. The permanent policy has the same level premium every year, and does not increase because the cash value, partially created by those premiums, is guaranteed to increase each year offsetting the increasing risk. The cash value is calculated by people called actuaries (they have the calculations on what the risk of anybody dying at any given age are. Plus, they are backed up by each company's own experience with claims). The cash value is a calculated reserve created by premiums paid into the policies coupled with investment returns the insurance company makes in very conservative places like bonds and mortgages.

[@justinacase2623]

So how do these Life Insurance companies provide more income than one can make in Good Mutual Funds? Where are they investing all that money they rake in to build those huge buildings and pay commissions? Is there a secret investment vehicle that is not available to the public? Spill it brother!

[@brandonrudder1300]

Don't be so short sighted. Annuities are also part of life insurance and can be used to create deferred growth for the future which is very much needed in this economy for most of the middle class so people can actually retire comfortably and have something to show for the years of hard work.

[@giuseppemontesano7722]

If you think life insurance or accident benefits is not useful you are just plain ignorant.

[@truthexclusive9769]

Useful is not the topic , whether to use it as investment as focus

[@LIFE180]

What are some ways to create cash flow outside of wall street? Comment below! Watch this for more: kzbin.info/aero/PLrRnvQl4pMjj6V3ZJsl4DUiwP4YBAhR3u Let's discuss your finances or life insurance business - click on the scheduling link in the description.

[@zer05tar]

Money is a tool, like a gun in the war for retirement. A pistol doesn't win a war, although it has its place. $250,000 investment and everyone in your family never has to use a bank ever again. Lower tax rate, cut spending and BOOM, you and yours are financially ready for the upcoming days. Good stuff.

[@fuNaN89]

If life insurance beats the market. Tell me how does insurance make money in the first place?

[@LIFE180]

Through investments in fixed assets in corporate bonds. Most mutually held companies still have bonds from the late 80’s on their books paying 10+% guaranteed annually. This is not a place I can go into great detail about how general accounts for LI Companies work, but when you look at 30 year cycles, it’s pretty impressive. However, I would still argue that if you are thinking of LI as an investment and not the storage vehicle for the investment, you didn’t understand the video and you should watch again.

[@fuNaN89]

@@LIFE180 I watched, you try to compare it to a saving account. A saving account where I can draw money out from an ATM. Like instantly. If comparing LI to the market is unfair, so is comparing it to a saving account.

[@LIFE180]

fuNaN89 I would argue that you can access your money within 72 hours with a LI contract. So why would I keep an emergency fund inside an account making nothing with no extra benefits when I could do this??? A properly structured whole life policy is the best storage vehicle for your money. If you want to take from it to invest in whatever you want, go for it. Self finance a car instead of paying cash (Yes the math makes sense - don’t give the classic “why would I pay interest to borrow my own money” answer. If you do it shows me you haven’t done enough research). It’s the most flexible financial vehicle you will find that will help you in every environment

[@fuNaN89]

​@@LIFE180 A saving account is not just an emergency fund. It is a liquid asset. Not a 72 hours with forms filling and terms and conditions applied kind of liquid. Real liquidity. Even though, I would say that 72 hours is pretty reasonable. In terms of an emergency fund. LI is a no brainer, because that is what LI is. It is the only student in the class. The only elephant in the room is, are you willing to pay for the odds of actually needing the money in an emergency (or your loved ones needing it). I think this is what is all boils down to.

[@LIFE180]

fuNaN89 for most companies, it’s a simple one page form to request your money. They CAN NOT disallow you accessing your money. I would make a very strong argument that the benefits far outweigh the negative of a 72 hour waiting period to access your money. I’m not saying you don’t want several thousand dollars in a savings account, but anything significant would be much more efficient inside what I am talking about. Just run the numbers...it’s pretty simple.

[@rashidunbayev7253]

Dave Ramsey has is right and you comparing to bank account with 0.1 apy that tells me a lot which audience your focus is on. I disagree.

[@AsiaticWorldTv]

This is all based off opinion. Dave Ramsey is a Great Teacher for people who are not wanting to be wealthy! Dave Ramsey is a Man who has made money off the Middle Class and the Lower Class. If you are an employee you pay the most in taxes. The concept that is taught to get out of debt and don't use credit cards etc rumor (keyword rumor) has it that Dave Ramsey bought a House/Rental Property with his own Credit Card. In addition Real Investors and many wealthy people use debt to make them rich and build wealth. The USD is not what it used to be at all. 1971 Nixon took us off the Gold Standard and it used to be illegal to own gold in the US. Dave Ramsey needs to respectfully stay in his lane and make it clear it is his opinion not stating it as fact. In regards to whole life it is using the benefit while you live and getting a death benefit simple and effectively. Term Insurance is Death Insurance and it too is a very good thing to have. Donald Trump has over 48 Life Insurance Policies for a reason he isn't dumb. Pretty sure they are not all death insurance some are whole life. Dave Ramsey in closing did not become a Millionaire by only saving money. No one has ever built wealth or a business by saving. Why save money is a typically way when they keep printing money? Lastly I am grateful for Dave Ramsey s philosophy for those it is for. Like my Mother 250k in debt did what Financial University instructed and now she is well educated on his financial education program but my Mother is one who doesn't want to multi millionaire she wants to do the traditional which is fine. Go to school get a job and work 40+ years of your life and retire and get 1/3 etc. Not me. This mentality was brought into society by the Rockefeller Family via the Department of Education. Don't believe me study to show thyself approved.

[@AsiaticWorldTv]

You either you want to be wealthy or not. It is all a choice. Everbody has choices #E40 lol

[@hbrigful]

You are completely correct. Rather than comparing to the stock market - he compares to savings account.

[@jperkins1269]

@@hbrigful That is why he says it is not an investment. Your savings which Dave tells you to have gives is the proper comparison. Why not get more for your money and savings. Research the infinite banking concept....It works believe me.

[@YvesLaMarre]

So why is that banks and corporations are seeing life insurance as an investment. The numbers don't lie $150+ Billions dollars worth. Not knocking others strategies just feel that it's a conservative and probably the safest and underutilized instrument.

[@SharonJohnsonSmith]

Banks and corporations use life insurance assets (cash flow) to make investments... Life insurance itself is not an investment! Life insurance is a better alternative to banking products!!!

[@SharonJohnsonSmith]

Check out: www.worthunlimited.com/moneysaved

[@claytonloringnhti]

Sharon Johnson-Smith f

[@lomax742853]

because that's how they were trained to see it

[@thebestclassicalmusic]

I still struggle with this concept. Why not leave your money invested and just take a loan from somewhere if you need something. In the same way it would not impact the compounding of your money and you are paying interest either way. The cash value is basically a LOC or am I missing something? In your example, you are buying a home for cash. Why not invest that money in something and barrow with a mortgage to buy the home? Pr day I say, use that money in the first 15 years to buy 5 homes? i really want to understand this system, I just do not see the benefit yet.

[@samsciascia4004]

Remeber your using the same dollar twice. What else can you do this with a HELOC depending on the value of your home also they could call those loans due and depends what your financial situation is. Same thing with a LOC you still have to prove you qualify and this funny thing called life happens. I learned this concept from a couple Real Estate investors before I got involved.

[@lockyer0061]

The money you have invested is at risk? As well you have to pay tax on the growth. From what I see, the Life Insurance, protects you from the above?. So the main cost of life insurance is the requirements it takes to get ur money out for life emergency

[@dmustakasjr]

You've actually figured it out, IBC is not an investment alternative but a banking alternative. It can give you the freedom to invest. #SpotOn

[@LIFE180]

Kind of crazy how so many people still are not understanding where I am coming from. I am about to launch an entire new video series on all of this. Maybe that will help? 🤔🤔🤔

[@dmustakasjr]

@@LIFE180 The title is a little misleading and may make IBC adherents #Trigger

[@LIFE180]

@@dmustakasjr haha, that was kind of the objective ;-)

[@eugenegina2410]

Its not a good investment then why does he say Zander life insurance is a good buy.

[@kathrynmlampi]

He suggests TERM life insurance (not WHOLE) through Zander. He also says not to look at life insurance as an investment.

[@antoniostorcke]

Dave is involved with Zander. Their insurance is good for one thing.... Life Insurance.

[@JasonBuckman]

Because it's protection. Term life is protection for those who depend on your income. It's not meant to be an investment.

[@JasonBuckman]

@@antoniostorcke Zander does more than just "life" insurance.

[@JAJA0913]

Well, if you have 100k - 130k cash on hand, buy houses and rent them out, you will easily get 400k - 520k at the end of the 15th year--if return on your money is the focus. This is about 100% guaranteed, unlike the illustration in video which is "non-guaranteed". The cash outlay in the video illustration is 120k MORE than the 130k upfront investment. And yet the "non-guaranteed" result is only about 300k.

[@LIFE180]

Lucian, I think what you are missing is that is exactly what we teach... You can do both at the same time. You can use policy loans to purchase the RE, never interrupt the compounding, pay back the loan, reliquidate those funds, and have all the equity in the RE and the value of the policy.

[@foreveroldsmobile9874]

He does the two $50K bumps in the first two years to complicate the formula so it is difficult to calculated actual interest on this "investment." Plus there is semantics to not call it an investment. You are only earning about 1% average yearly compounded interest return in that first 10 years formula. If I was getting a true 5% after fees on my money put in a Roth, tax free, I would have nearly $600K vs the $386K in his policy he has at the end of 20 years. If inside a Roth 401k, I could loan the money to myself for 5% plus get the true pay back, yes I lose out on market increase, but even in his loan formula you notice he is not getting dividends from years 3-8 when he borrowed. Most life insurance interest does not come back to the policy holder, only the dividends . And the truth is that $386K is not really your money, it's money you can borrow from if you are to meet the IRS terms of not paying taxes and borrowing creates an IRS debt that has to be paid back, usually in most formulas to be made whole by a death and the death benefit.

[@LIFE180]

Simply put, I don't call it an investment because the risk profile is that of a savings vehicle, not an investment. IE: the funds are guaranteed. You don't have guarantees in an investment. I consider whole life (when properly structured) to be a storage vehicle to give you leverage. Then you can invest in other things (stocks, cash flow real estate, fix and flip houses, businesses, etc...). If you are looking at just the return on the policy, you are missing the point and the strategy altogether.

[@06Awake]

I've been trying to find videos to convince me to keep my Variable whole life policy. So far none out of the 5 30+minute videos I've watched, this one included, has convinced me. But rather shown me how bad of an idea it is.

[@LIFE180]

Daniel, first of all, if it is a variable whole life policy, I would agree with you, it is probably horrible... The other consideration is, what are the alternatives? My problem with Dave Ramsey's perspective is he is always comparing Whole Life insurance to a mutual fund (while I disagree with him on a lot of level with that, that's another conversation). He should be comparing whole life to your emergency savings account. If you saved the liquid cash you needed access to in a properly structured whole life policy, you would be way better off than storing it in a bank account. Better IRR, better additional benefits, and tax advantages. The mistake everyone makes is comparing whole life to mutual funds. It is not the same type of tool, therefore, shouldn't be utilized the same way...

[@LIFE180]

My other question is, what of this shows you what a bad idea it is? It is hard not knowing what your policy looks like....

[@06Awake]

Without getting into the details, I'm mid 20's with a large employer coverage that I'll be with for 7 more years. I can invest the amount of my variable myself then buy large 30yr term and invest the difference. By the end of the term, should I live, I'll have much more in investments with those same index funds. And if placed in a Roth IRA, also receive the tax benefit. My alternatives are much too great to stay with it.

[@danielkicksable]

Daniel Sanchez - 401k's, IRA's, Roth IRA's, Annuities, Mutual Funds & other Financial Vehicles: 💰💲💸📈📊👍🙌 As we Work; With time, through our labor we develop more, if not, Large & significant amounts of money through these types of financial accounts; My advice, from an unbiased objective tax break point of view is that, if you have large amounts of money that have accumulated in any of these accounts; you have HUGE TAX PROBLEMS! . (THESE ACCOUNTS ARE TAX DIFFERED!!!) Meaning, it's just a sitting duck, waiting there to be taxed! 🦆.. Either Use it, leverage it, or LOSE it to FUTURE TAXES! Do something now, while the best option still exists. Move your money from accounts that are FOREVER TAXED, into accounts that are NEVER TAXED! Life Insurance, brings a new meaning to the term "Death & Taxes!" ( Now, although we may not be able to escape death; Taxes on the other hand, may be a different story!) 😉 .

[@MikeCarolus]

Sorry to hear you have a variable policy. This example is a whole life policy from Mutual Trust Life Ins Co. They were recently purchased by Pan American but the 4% GUARANTEE is still in place and the loan provisions are among the best in the industry. No risk, guaranteed income even if you run out of money. Wall Street is the casino, Life Insurance is the safe room, the fortress!

[@staceybrown6891]

So save money. Don't worry about the money not being credited to me the first couple of years. Borrow my money and make a purchase. Use the gains from my purchase to repay my money that I saved (and borrowed) with my gains. Explain to me how that would not be paying 3 times for one purchase please and thank you.

[@LIFE180]

Hey Stacey. First of all, I am not sure about what you are talking about the money not being credited to you. In a high cash liquidity policy, yes you lose a little liquidity in the first couple of years, but the benefits you pick up are amazing. Plus the guarantees of growth will CRUSH that of a bank. I would also argue that your money is safer and liquid enough to have access to the same week if needed without penalty or interest. Next, anytime you are going to borrow money there is going to be a cost. Don't think of this through the policy, just think about that in life in general. One of the things that drives me nuts about Life Insurance agents is they are always beating the drum that you "should" take a loan against your policy (notice I did not say from). The reality is that's not true. It's simply flexibility to have access to it. If you are getting a new car and you can get 1.9% financing, you should never take a loan against your policy...it simply doesn't make sense. Just take the 1.9% deal, pay it, and allow your money to grow at the 5-6% it is likely growing in your policy (4%+ guaranteed in most cases with a good mutually held company). However, if you are looking to buy a property to flip...that's another story. Hard money is going to run you 9-12% in most cases. Plus it is pretty strict about making payments with a bubble payment at the end within a specific timeframe. If you could instead be your own hard money lender at 4-5% and gain more flexibility, it makes life not only easier, but I can tell you story after story of people who have made hundreds of thousands of dollars more because of the velocity of money in these scenarios. Here is the bottom line, if you are looking to simply use the policy to save and just invest in mutual funds and your 401k, this is not for you. But if you realize mutual funds and 401k's are a scam, as is managed money where you pay a flat percentage fee to your advisor, and you realize that the people who have true wealth (money and freedom) do it this way. They keep their money in an account that is guaranteed and grows at a higher rate than inflation. Nothing else will offer the benefits like a properly structured whole life policy. That's why I say whole life itself is not the investment. It is a storage vehicle alternate to a bank. The real estate would be the investment that you can access because you have saved capital for it. There is a lot more to this (like arbitrage) with certain companies that work in the policy holders favor. IE: if you can get a loan against your money at 5%, but still be earning 7% on that money, that is 2% working in your favor always. It may sound too good to be true, but it does exist. I hope that makes sense and helps.

[@craigt2003]

I'm no Dave Ramsey fan but to be fair he says he hates Whole life insurance but he seems to like Term life insurance.

[@LIFE180]

Right...he hates whole life. This video talks about the misconceptions of what whole life is.

[@JonO387]

I love it. Thanks for showing me Dave Ramsey is right and this is a scam.

[@LIFE180]

JonO387 curious what about this is a scam and what part doesn't make sense to you?

[@LIFE180]

Nick White PS - I don't personally sell life insurance. I 1000% believe in it, but my business is financial education and helping people structure their lives

[@coltengafford9869]

Max Carter =

[@LIFE180]

PS - I am not an insurance salesman. I am focused on financial education. Don't have an insurance license. Just dedicated to helping people with money... Thanks for the comment though....

[@amandakwong2647]

@@LIFE180 , thank you. I have many investments & didn't make money but I know my 3 life insurance policies will give my kids estate wealth. We all going to die soon or later

[@joro18d93]

I like this input, but you never actually say that Dave is wrong about not keeping your cash value if you die unexpectedly. I have a whole policy that I can't figure out what to do with because of all the controversy over this. I'm too old to surrender my policy due to cost at my age. I don't know who to trust. Dave has nothing to lose or gain. The insurance companies have something to lose and gain. Not convinced either way. Thanks for the video.

[@LIFE180]

Honestly, it all depends on structure of the policy. I’m happy to look at it and give you my opinion. Email me chris @ LIFE180 dot com PS - Dave does have something to gain...he owns part of a term life company...

[@darriusharris3020]

@@LIFE180 I’m a life insurance agent can you show me how to set people up doing this?

[@LIFE180]

@@darriusharris3020 email chris @ life180.com I'm happy to chat

[@arulkarthi6503]

Why don't you talk about the foot note on the illustration page? Those figures are not gurented. Why don't you tell the surrender charges? What is interst to borrow from the cash value? Please tell teh truth.

[@LIFE180]

Hi Arul, I can talk about the footnote. I will do another video. In fact, the surrender charges are based in the cash accessibility. That accounts for all those. When you are doing a high early cash value policy, surrender charges are greatly minimized. And while they are not "guaranteed", they will actually almost certainly OUT PERFORM the illustration because when the video was made we were in such a low rate environment. Now that fixed income rates are going up, policy holders will benefit. The fact that you said I have to borrow FROM the policy just tells me you are not aware of how these work as a tool and you are just regurgitating Dave Ramsey. In fact, you borrow against your policy. And in fact, your money keeps growing at a higher interest rate than what you actually pay if you structure it right and go with the right companies. Anything else?

[@arulkarthi6503]

@@LIFE180 Please don't combine investment and insurance. They are are two diffrent products. By combining the agent and company make money. You need money when you get older.

[@nitinjacob2919]

This is absolute B.S. There is another video wher ethis guy Chris Kirkpatrick supports Robert Kiyosaki, who is a big fan of the Whole LIfe Insurance as an investment concept. And here he's taking the complete opposite view. What is the meaning of this?

[@CPAinc2011]

Clearly, you are not following the video or what he is saying. He is showing us how great of a tool it is and HOW one can use it to propel them forward. The view is the same regardless of using the word or not use of "investment"

[@LIFE180]

The entire point of the title of this video is just perception of "what an investment is". Whole life is a great alternative to banking and can make every investment you make better. That's why RK loves it. There is no confusion here.

[@ronaldsneller1989]

I thought the exact same thing when I saw the title, that Chris flipped his view somewhere along the line. Watched the video, and then realized that it was just a headline to catch attention

[@travis10466ny]

are you a realtor, investment broker, or a life insurance agent? Th market suppose to crash. it goes up and down all the time. Looking at history since 1929 market been doing great just saying

[@LIFE180]

If you watch my videos, you will see that I agree with you on that sentiment. I am an entrepreneurial coach. I run a business development agency. I talk a lot about using money as a tool as an entrepreneur because most people get it wrong....especially Dave Ramsey. You should watch my video on the LIFE180 Pyramid and how to set yourself up for the market swings to prosper: kzbin.info/www/bejne/g5qZZpWtpZeae9k

[@Lanthaman3]

Life insurance is not an investment vehicle, it’s a protection vehicle, with safe growth…

[@LIFE180]

Right. Can't compare to an investment because it doesn't have the same risk profile as an investment

[@chriss4365]

They have savings accounts that are currently paying 2% stop only mentioning the garbage rates the big banks are paying they have high yield savings accounts.

[@JasonBuckman]

There are some that pay 5% or even more.

[@jimkieswetter250]

Whole life premiums do not change as long as you live. Term insurance is 1/20 the price until it renews ie 15yr 20yr 30yr. At that time term skyrockets in price and health issues arise on renewal and you may not qualify & your stuck no insurance or high renewal. So term is good when your 20yrs old but your screwed at renewal at 40 yrs old and up. So whole life floats you thru your 40s 50s 60s 70s 80s until you die. Term ain't cheap on renewal. Wow factor hits and no renewal happens . Dave Ramsey forgot renewal time for term plans....

[@LIFE180]

Yes...the problem is that Dave looks at life insurance as a need product, but it really isn't. It's a want product. His position is very confusing for me based on the fact he is a Christian. To me, my finances are all about efficiency. I may not "need" whole life insurance because I could deal with term and self insure the rest...but that would be inefficient from a legacy perspective. If you are on the fence, I would ask you, "what do you want your next generation to have". Would you like to implement a plan that can guarantee that what you want to happen, will happen, when you want it to happen, whether you are here to see it or not? That's the magic of what we teach.

[@travis10466ny]

are you a realtor?

[@LIFE180]

I am not a realtor. We do real estate investing though. My wife is a licensed realtor.

[@lindisantana8312]

Says a whole life agent seller 🙄

[@LIFE180]

What part of my video did you not agree with?

[@edcollier2526]

As I'm watching this, it reminds me of the nut and shell game I've seen on the streets of NY! He mentions fees for the life insurance but never shows the actual breakdown of a clients financials (personal info redacted). Instead, he shows the same illustration and non-guarantee form. Plus, when words are misspelled, you lose credibility.

[@LIFE180]

You actually expect me to put my clients names on KZbin without being blurred out??? For the comments about not showing the guaranteed column, I have a video on how to properly structure a whole life policy that shows the guaranteed column and goes much deeper on the issue. This was supposed to be an over-riding philosophical video. The other one is more technical and covers all of the moving parts.

[@edcollier2526]

@@LIFE180 No, I dont expect you to post their actual information. What I meant was, you didnt provide any information that was specific and so the fees and actual financial breakdowns are undisclosed. If you have another video, with these types of details, then post the link and maybe reference that video in this one.

[@LIFE180]

@@edcollier2526 I have posted the link to that video in this thread several times. Unfortunately, it gets lost in the comments when people continually comment.

[@edcollier2526]

@@LIFE180 maybe post it across some of the video screens? I've seen that done before and it's very helpful.

[@VIEWMARY001]

Dave is a banker hahaha

[@geary2]

90 percent of term policies never pay out, that's great for Insurance companies not you. If you can afford IUL then do it. Probably double the investment versus a term policy. The money you invest in Life Insurance will be worth it by taking tax free policy loans as needed from the policy once the cash value grows. The policy will pay for itself through tax free loans that you earn interest on. Plus you have death benefit for your entire life. Plus you have access to the death benefit through living benefits riders. If you haven't become self insured ( saved enough money) by age 65 then you still need life insurance to support loved ones. Statistics show that most people still have to work after age 65 in order to make ends meat. Most term policies are written for 30 yrs so if you are like most stunads and buy at 35 years old your policy is expiring at age 65. After 65 a term policy can continue but at exorbitant rates. Nothing wrong with having term, it does have a purpose. You just gotta die for it to be of value otherwise you will have spent all that money for nothing. Cash value life insurance is real life insurance, it will pay out in many ways. jgeary.freedomequitygroup.com CT and MA licensed

[@annielin2894]

John Geary, I am doing National Group Life as a broker.

[@utah20gflyer76]

Stock market returns 1 percent after inflation? Uhhh OK? I couldn't continue listening after that statement. I would agree it's not 12 percent but it's no where near 1 unless you are doing things completely wrong.

[@JasonBuckman]

Also, comparing Dave Ramsey's numbers to numbers after inflation is disingenuous.

[@travis10466ny]

😂🤣😂🤣😂😂 hes definitely a whole life agent

[@scottone6498]

Ok, this is funny. "Only $15,000 a year, with a "dump in" of an extra $100,000 in the firs two years"?? So you put in $250,000 over 10 years, and it's worth $276,570 after ten years?

[@kirkroyse7305]

Life insurance is what it is, a hedge protection for you're family

[@LIFE180]

Kirk, I would argue that if I listed all of the things (benefits) whole life could do for you aside from life insurance, you would be shocked. It's much more than hedge protection if you do it right....

[@JasonBuckman]

@@LIFE180 It's literally a hedge protection. Even you said it doesn't have as much upside in your video. Insurance is there to protect what you have.

[@LIFE180]

Jason Buckman If you structure it properly, it is a great storage vehicle that provides great liquidity. The upside in a policy is limited, but very predictable. However, using the policy as your own personal bank to invest in other investments like real estate or businesses is where you actually create wealth with the strategy we utilize.

[@kirkroyse7305]

@@LIFE180 or you could just invest in the stock market like a Roth IRA fully fund it save you're money stay out of debt and just simply delay gratification.. slow and steady can win the race without the pitfalls.. I happen to own a whole life policies I believe in as many buckets as possible.. I'm 39 years old going to hold onto my policy until I'm like 60 years old cash out my value and then I wont need life insurance kids grown and built my wealth for them

[@LIFE180]

​@@kirkroyse7305A couple responses to your comment. 1. If you are going to hold your whole life policy til you are 60, you would be a FOOL to simply "cash out". You will be hard pressed to find another asset that will give you the return and flexibility a good whole life will give (especially that far into the policy). 2. I find it funny that people believe saving in 401k's and IRA's are what should be done. Like it's a given and if you don't do it, you're a fool. 401k's and IRA's didn't even exist until the early 80's. Heck ROTH IRA's were the mid 90's. If you look at the results MOST people get with them (yes yes, I know there are people who do well, but I am talking predictable results) after fees, it's absurd. I can show you statistic after statistic about how horribly performing 401k's are as a whole. Outside of getting a match on what you contribute (which you should absolutely do), I personally feel it's a fools game. 3. If you compare a whole life policy as a savings vehicle and using that policy to purchase cash flow real estate to a 401k or IRA, there is no comparison. The difference is mindset. I believe in investing for cash flow. After all, the amount you need to have in your account changes with the fixed markets to have a secure retirement. IE: $1 million when the fixed market is at 8% compared to $1 million when it is at 3% is a huge difference. I will agree that in a higher interest rate environment, there are more options. However, when rates are low as they have been for a prolonged period of time, conventional methods simply won't work. The last thing I will ask is this... Why would you cash your policy out at 60? Do you plan on leaving nothing to your heirs? If you do, there is no more tax efficient way to pass that money along than with a life insurance policy using a trust. I suppose if you are looking to just spend everything you have before you die then it makes no difference, but if that's the case, we simply have different philosophies on how we want to help our next generations live a better life. However, you did say you built your wealth for them. At some point you need to pass it on. How do you plan to do that tax free?

[@menalikuk]

Sound like another pitch to buy whole life insurance. Love how you spent .02 seconds on how the cash portion doesn't get paid out when you die. No thanks. I'd rather just keep buying rental properties in trusts and buy term life insurance. My family would be just fine.

[@LIFE180]

Hey, it's your life. If you want to make inefficient decisions, knock yourself out. I'll go plan vs plan with you and win every time. You probably would have no control interest in that though, you would rather focus on talking points that Ramsey pushes.

[@AlabamaCreek33]

Be sure to look into term life insurance with living benefits and if you're worried about the cash value not going to your beneficiary in an whole life policy. The cash value in an IUL's goes to the insured beneficiary vs than going back to the company and only the DB being paid out to the insured beneficiary. But it really depends on what you want your legacy to be after your gone.

[@AlabamaCreek33]

@@basilcjames Yes correct, if it is whole life the cash value goes back to the company. With an Index Universal Life the cash value goes to the beneficiary.

[@LIFE180]

@@basilcjames tell me how it is screwed ? Especially compared to that money being in a bank account?

[@butterfly-pf8lj]

LIFE180: Leading Into Financial Excellence why he can never answer your questions

[@fredstone9016]

youre good with your words and factual numbers. Except, I like to educate people on those facts that you speak of, sad to say you'll win 90% of the time because the majority wont spend the time to learn the facts that you speak of. I'd love to sit down with you and you show me the very same plan you'd put on me at my age, put on someone you love and care about. One thing I know, is that I can guarantee 100% you wouldn't do that to someone you loved or cared about, unless you love money that much. Kudos on your deception sir.

[@LIFE180]

Fred, I am confused. I am not sure I understand what you are saying. There is no deception to anything I do. In fact, I would argue most financial advisors sell on deception. Whole life is the only product I know of that I would be able to show you the worst case scenario 10 years out. You can't do that with anything else because the markets are what they are. I don't know you or your age, but once again, if you are thinking I am comparing life insurance to most investments, you're missing the point. Compare the 6 months that Dave wants you to have in a rainy day fund (I think it should be 2 years personally). Where do you keep that money safe and secure? What's it doing for you? What will that look like 10 years out compared to a properly structured WL policy? I GUARANTEE the WL policy will be far better every time.

[@fredstone9016]

@@LIFE180 hey could you tell me how you get that money out of that wonderful Whole Life policy? Oh and hey, how bout if you were to keep that wonderful Whole Life policy til retirement and you had let's say a whopping 150k in Cash Value on that amazing 4% rate of return, what happens to that cash value if you were to pass away?

[@fredstone9016]

Rainy day fund, Bonds, in the last 2 years, better than 4%. 10 years out, average 4-6% track record, federally tax free on growth. Why 2 years? Seems like a lot of money to be tied up for that length of time. You speak of a properly structured whole life insurance policy yet you say if im comparing whole life insurance policies to most investments im missing the point. Life insurance is here for essentially 2 reasons, and only 2 reasons, to cover our debt, and to replace lost income. If im missing the point and we're speaking of investments INSIDE a whole life insurance policy what point am i missing? Insure and protect your family with life insurance and invest outside of that. Do you have an investment inside your auto insurance, home owners insurance, dental insurance? What point am i missing? You say you don't speak of deception, I disagree, you use the scare tactic of investing in the market and having to pay taxes on your growth, true in open accounts, but have you ever heard of a ROTH IRA? Seems you have not, so do some research for yourself, or just be honest and inform your clients that this is a vehicle you use personally, which Im about 100% sure you do unless youve scammed enough people in to purchasing your financial night mare that is whole life, life insurance policy and have made too much money to be able to invest in it, and share with them that the money you put in today is taxed but as it grows at an average of 9% (which is below market average) and over a course of lets say 40 years the money that you take is now tax free. Pretty important info your clients would like to know. One thing I agree with you 110% on in that you are correct, Whole Life insurance will show you, and prove to you, IT IS, the worse case scenario 10 years out. Im glad you weren't deceptive on that, you actually spoke the truth! Kudos sir!

[@fredstone9016]

@LIFE180:Leading Into Financial Excellence Hey buddy, still waiting for your reply???

[@LIFE180]

@@fredstone9016 Man, you are funny and obviously very emotional about this... First off, life insurance is a financial tool. When I say don't compare to an investment it's because there is no risk. Compare it to a bank account and the performance and benefits you get from that. If you think it doesn't exist to get benefits aside from the death benefit, you are short sighted and missing opportunity. Of course I have heard of a Roth... However, I simply have chosen to believe in a product with 150 years of history, not some account that is 21 years old (Roth's were not around until 1998). Even 401k's were not around until the early 80's. There is NO LONG TERM HISTORY OF SUCCESS FOR RETIREMENT IN EITHER OF THESE EXAMPLES. Yet people like you claim they are the end all be all....and look at the cumulative results of people who use them. The performance is worse than anticipated and fees are higher. That's a fact. Listen, I used to be licensed to do all of that (401k's, Roth's, Mutual Funds, Etc...). I am not saying they are bad. They are a tool. But for an entrepreneur, nothing will be the leverage of a whole life policy. PS - my 2 years comment of savings makes sense. Watch my video on the LIFE180 Pyramid if you want to understand why I feel that way.

[@justinacase2623]

Sorry, I quit listening to you when you said take out a loan.

[@matthewzupke5298]

That my friend is exactly where you SHOULD have paid the most attention.

[@mathiso01]

@@matthewzupke5298 yep

[@travis10466ny]

😂🤣😂🤣😂 you didnt miss a thing. why take a loan from your money lol

[@justinacase2623]

@@travis10466ny don't borrow money! Ever!

[@pressurebusspipesmakesdiam1366]

Poor peoples mindset

[@gabrielgiron2465]

Notice how the illustration is a non guaranteed😂😂😂now show them the guaranteed assumptions

[@LIFE180]

The "non guaranteed" simply means the dividends are not guaranteed. Funny thing though, no major participating mutually held company has EVER missed a dividend payment.

[@haisammubarik2908]

you should change the title of the video for people who see it at a surface level. change it to "Life insurance - asset vs investment." I understand why you did it the way you did.

[@rickymohindroo7457]

Life Insurance is not investment

[@AlabamaCreek33]

Correct, it is a benefit 😉

[@caros4279]

Bottom line: no all people can be rich, resources are limited.

[@LIFE180]

Do you seriously believe that?

[@kennethwers]

Wow, Compare life insurance to the lowest possible investment. Then show how you can pay interest on your own money and reduce your death benefit.

[@farismohammed2594]

Who are you? Lol

[@od4407]

You understand not all financial experts are famous? Is that what you look for to trust someone, their fame?

[@RedScareClair]

In the first minute you've already said it - insurance is complicated. No. WHOLE LIFE is complicated. Term is stupid simple. Pay an amount, get coverage. I don't need life insurance to be a money making product. I need it pay my family in the event of my untimely demise. That's it. Simple. It's defense. Not offense.

[@LIFE180]

Claire, that mindset is what keeps people in the middle class... Hey, if you don't agree with my philosophy on insurance, that's fine. I'm really not in the mood to argue about that today 🤣. However, the foundation of your statement is the "buy term and invest the difference". You see, I work exclusively with entrepreneurs. So admittedly, my strategies cater more to them. But the foundation of buy term and invest the difference is investing in mutual funds. There really is no worse investment out there.... I'm a big believer that if you want to be successful, go find people who are where you want to be and emulate what they did to get there. Look at the studies.... virtually nobody gets rich with mutual funds (and my rich I mean having $1m, which quite frankly is nowhere near rich). Go interview 1,000 multi-millionaires and ask what they did to get to that level of success. I promise you less than 1% will say they bought term and invested the difference in mutual funds or followed any of the advice Ramsey gives.... Your statement isn't based on real life, obviously. If you went out and talked with some of the top entrepreneurs, you would realize this is the strategy they implement.

[@mauricelyle62]

Whole life is not an investment... it’s a lot more than an investment it’s a tool than can be used to your advantage ...smart folks will understand that... I’m sure Dave Ramsey and Sussie have whole life Insurance if they’re smart lol

[@mr5timewcwchamp]

Well suzie sold single premium whole life policies before the MEC was a thing, theres nothing on Dave though

[@lomax742853]

i would bet my life on the fact that they dont

[@JasonBuckman]

Dave Ramsey does not have whole life insurance. He doesn't need life insurance at all. He only has term because SWI (Sharon wants it.).

[@samclemons9086]

Your first example is a terrible investment that’s only a 4 percent APR. That’s barely keeping up with inflation. You would be better off sticking it in a S&P 500 index fund.

[@LIFE180]

If you understand the purpose and strategy behind this, you could still put that money in the S&P. This is not a comparison to an investment, it's a comparison to a bank account. I don't see how you can compare a product that has virtually no risk, great guarantees, and living benefits to a product based on market performance. Whole life is a storage vehicle for your money to leverage and do more with it.

[@LIFE180]

Watch some of my newer videos to understand better if you are interested 😊

[@samclemons9086]

@@LIFE180 Actually it is about investments. You mentioned that most mutual funds make around 1 percent rate of return. Sure some mutual funds do suck. But do some homework and pick some mutual funds that have historically outperformed the market. Which would give much better rates of return than your crap whole life insurance.

[@LIFE180]

Sam Clemons ok, this is a pointless conversation. Whenever someone says “better than your crap” anything, it’s obvious they have an emotional issue that I have no interest trying to battle with. The logic behind mutual funds not working is not based on emotion, but fact. Sure you can do some homework and pick good ones, but that old disclaimer of “past performance is not indicative of future success” holds true in all mutual funds. The reality is, look at the over-riding results of people who invest in mutual funds. In addition, it is not about investments. I will stand by that comment. IF you are so good at picking AMAZING mutual funds, more power to you. Take a loan against your whole life policy and purchase them that way and you will be better off... We obviously have a different philosophical belief about life. My belief is, if you want to be successful, find someone who has what you want and emulate it until you achieve the same result. All of what I teach is about creating wealth. Not getting by and remaining middle class hoping to have enough to survive at retirement. Find me a multi-millionaire who became wealthy investing in mutual funds? It doesn’t exist. I am not saying they are bad if you are amazing at picking the right ones. The problem is, stats show 94% of money managers and mutual funds underperform the S&P 500 index after fees. These are not my opinions or emotion, just facts... Most people won’t pick correctly. I believe people should invest more in what they know and have more control of...

[@samclemons9086]

There is no need arguing with you. In order for me to win you would have to quit selling life insurance. To your point about there are no multi millionaires from investing in mutual funds holds no water. Both my parents and grandparents are multimillionaires from investing in mutual funds steadily over time. A good book for you to read is Everyday Millionaire. In that book the author surveyed 10,000 millionaires. Almost all the millionaires were created by investing in their 401K and IRA’s over time.

[@Bobventk]

The stock market casino? Really?

[@LIFE180]

Yes, the stock market is a casino. Especially the way most people invest in it. Most people are not investors, they are speculators.

[@Bobventk]

@@LIFE180 the stock market is not a casino bro. Straw manning isn’t going to being anyone to your side.

[@LIFE180]

@@Bobventk by definition it is gambling. What makes it investing isn't the index or stock you buy .... It's the financial structure in which you do so.... Listen man, I have no problem with it, I played poker for a living in my 20's. But it is what it is. Look at the S&P 500..... The companies in the index now are almost 100% different than 50 years ago. That means there is a lot of gambling and speculation. You may not like my wording....but the facts are the facts

[@Bobventk]

@@LIFE180 ah man. You don’t understand how the market works and that’s ok. Most don’t. You see the world thru real estate and whole life colored glasses and that’s and that’s ok, it will absolutely work. It’s a fine strategy. But proper stock market investing is not gambling. And it scales more effortlessly than anything else.

[@altraylor4449]

If an Insurance policy is a savings plan then tell me why a client would have to borrow their own money. This is a prime example of what agents do...They do a Good job of Confusing People. He never compared Apples to Apples...Compare the numbers and stop all that talk... I think he really believes his own garbage...Did he say borrow your own money and pay it back

[@LIFE180]

Al Traylor it isn’t confusing people, it is using a financial tool as leverage. If this is confusing, I would hate to see you looking over mutual funds. When taking a loan, it is taken AGAINST your policy, not from it. But because you have the cash in your policy it is guaranteed - and guaranteed at a low rate (sure, there are circumstances you can get lower interest rate loans - like 2% auto financing - and if so, do that) compared to current market standards. You make your money with arbitrage (the rate you pay is less than the rate you are earning). My apples to apples comparison is comparing a savings account to a whole life policy. Sorry, the title was a bit “click baitish”, but the idea is, if you are looking at whole life as an investment, it’s not. It’s a storage vehicle to be compared more to a savings account. I feel like that was pretty clear. Maybe you didn’t watch the entire video?

[@42dunbar]

If you borrow “your own money” from a whole life policy the insurer deducts the compounded interest that they aren’t making on investments from your death benefit.

[@LIFE180]

@@42dunbar if the policy is structured properly, the DB will increase as the cash value increases. Then, even if you access money, there is a substantial death benefit left even after loan provisions.

[@42dunbar]

If you borrow money from a whole life policy compounded interest that the plan misses out from while you are borrowing the funds will be deducted from your cash value and death benefit. This will leave you with less money than if you had not borrowed the money in the first place. Most plans also charge you interest to “borrow” your own money.

[@LIFE180]

@@42dunbar Absolutely, there is no denying that there is a cost. But when you compare apples to apples, there is a cost to borrowing money anyways. The point to this is access to cheaper money. If you use a non-direct recognition company, you can borrow around 4.5% right now and still earn around 7%. Sure, your net positive is only 2.5%, but the point is, the financial structure allowed you guaranteed access to 4.5% money. If you can get cheaper money outside the policy, DO IT. However, if you are running a business or doing anything outside of buying a car or a house, you will be hard pressed to beat that rate. It's a strategy that is not complex, but needs to be done in a disciplined manor like anything else. However, once again, this is NOT an investment, it is a savings alternative. I am a big believer that the market is cyclical. The idea of having a 6 month emergency fund is old thinking. I also run a career management agency, the average length of being out of a job if you make $100k+ is over 10 months. I am a big believer that you need 2 years of liquid cash in case of emergency AND opportunity. After all, access to cash during hard times is worth its weight in gold. That is where wealth is created. Bottom line, if you are someone who invests for accumulation and want to be traditional, this is not for you - I have not interest convincing anyone that it is. If you want to invest for cash flow and have strategies to more effectively accumulate CASH FLOW, nothing will beat this. EXAMPLE: my wife does fix and flips. Access to hard money is at a 12% rate. Why would you do that when you can access it for 4.5% out of your own policy? That's a 10% savings that you can't calculate in the rate of return. (12% - 4.5% you are paying insurance company + 2.5% you are still earning on that money). Show me something that will beat that? Especially when you account for arbitrage in that borrowing.

[@phonxayphonseya3670]

Bs

[@LIFE180]

phonxay phonseya how so?

[@ericslingerland5472]

The fact that you call the stock market a casino shows that you are nothing more than a life insurance salesmen. You can say you got into the financial industry but you are just a salesmen. Almost anything you do with those deposit amounts would be better than this and it is a ridiculous plan.

[@LIFE180]

Eric, in fact, I am not a salesman. I can not sell life insurance to you if I wanted to. I am just an entrepreneur who uses the tool and believes in what a properly structured whole life policy can do for people. I am passionate about helping people get good information. The stock market is a casino for most people. That's why I call it as such...

[@stephenpoll926]

Any man that makes guarantees in finance has no idea what he is talking about.

[@LIFE180]

Stephen Poll guarantees are part of certain financial products... was there something more specific you had an issue with?

[@manboy4679]

Basically, Dave Ramsey is right, but whole life is better than keeping your money under your mattress.

[@LIFE180]

Not the point. The real point is that people should stop comparing whole life insurance to mutual funds and other investments. It's apples and oranges. However, it is a much better savings vehicle than a bank account.

[@staceybrown6891]

Nope if your money is in whole life can you get or do you have to borrow it? Listen again

[@c.s.d6961]

You should not make ANY REFERENCE to financial advice as you lied and stated you sell life insurance then go off to type in your comments you don’t sell life insurance. So not only are you a terrible financial advisor but you obviously have a lying problem you need to work out amongst yourself. Please stop talking money as you make people like me look bad who actually knows money

[@LIFE180]

When I made the video, i was licensed and able to sell life insurance. However, I decided to park my license. I have nothing to hide and I am not lying about anything. I actually gave my license up because of the fact I didn't want people feeling like I was making these videos simply to make a commission because that's not what it is about. I truly believe Whole Life is an amazing tool for people and if people use it properly, it can change their lives. Thanks for making that point though so I could address it.

[@bigdog6214]

YOU LIE, mutual funds are the way the to go over time

[@dplancarte1983]

This is a horrible plan iul is 1000% better all the same benifits just 1.2 million more cash!

[@LIFE180]

on the illustration maybe....but not in real life. Check out the #IULchallenge - IUL doesn't perform as illustrated 95% of the time.

[@dplancarte1983]

@@LIFE180 most old illustrations don't show the increase in premium over the years. So if the agent is not doing the right thing and doing an annual review, the illustration is not gonna reflect that on old policies. It just shows the start premium but when you look at the actual account it's killing it!

[@txbill38]

This is so stupid

[@rodrigomontoya1145]

Because he is a fool talking BS.

[@LIFE180]

🤣

[@gen_lee_accepted5530]

I love it when people have no idea what Dave Ramsey teaches or says but they are sure that he is wrong. How foolish.

[@LIFE180]

GEN_Lee_Accepted please let me know what I don’t understand?