The following transcript is from our webinar Dividend Paying Whole Life Insurance as an Alternative to FDIC Banking. You can view the webinar in full below.
| Steve Gibbs: | All right. Well, thank you guys for joining us. I’m excited to jump in, and Barry and I have done a good number of webinars over the years, and we’ve been talking a little bit in some of our other videos about FDIC, the best place to store cash. And with some of the things that we’re going to talk about today regarding traditional banks and the issues, I wanted to have this good discussion with Barry and get into some details about maybe having a better place to store cash than a traditional bank. And so with that, Barry, let’s dive in. What’s your take on today’s topic?
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| Barry Brooksby: | Thanks, Steve. We’re talking today about infinite banking, high cash value, whole life. This is a person’s guaranteed asset and the best alternative to FDIC. We’ve seen bank failures. We’re going to be talking about that today. We’ve seen issues with people being concerned about their money, the safety of their money. We believe there’s a better alternative, and we’ll get into some of those numbers. So once again, I’m grateful we’re doing a webinar that we can share with everyone to learn more. Education is key. If you’re listening to the webinar, there are many, many webinars Steve and I have done regarding high cash value, whole life, infinite banking, using cash value as your own bank now, and also tax-free retirement income. Looking forward to diving in.
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| Steve Gibbs: | And Barry, let me just add too, I mean, you and I have done a few things that are lifestyle oriented. We really encourage people to have a safe base of wealth that they’re building. And when you’re out doing things, like I’m in our California studio today, so when you’re doing things like surfing or camping or hanging out with your loved ones, do you really want to be thinking about your nest egg there? So I just wanted to make that point because it really relates to today’s topic and peace of mind as we are pursuing that lifestyle and taking care of friends and loved ones.
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| Barry Brooksby: | Everyone’s going to agree with that, Steve. We’ve got to be balanced in all areas of our life, and the financial component of our life affects everything else, right? Emotional, spiritual, physical relationships. We want to be safe. We want to be secure when it comes to our financial wellbeing so that we’re healthy in all those other areas of our life as well.
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| Steve Gibbs: | Yep. Well said.
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| Barry Brooksby: | FDIC and DIF concerns. The DIF is the deposit insurance fund that’s controlled by the FDIC. Depositors are insured up to $250,000. But what if you have more money than that in an account, or what if the DIF dries up? What if there isn’t money there? So we’ve seen three bank failures, Silicon Valley Bank, Signature Bank, First Republic Bank. What do you want to say about that, Steve?
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| Steve Gibbs: | Well, okay, so framing the issue, FDIC, you made a statement that a lot of people would say, “Oh yeah, I’m insured up to 250,000.” Well, the reality is that we hope that people are insured. I think this part of our discussion really, people should consider how secure is the FDIC when it comes to insuring up to that 250,000? So you have these three bank failures. These are regional banks. They all went under recently, as most people watching would have remembered. And the DIF had to come in and bail them out. It was over 30 billion in bailouts for these three banks alone. The DIF, I’ll just speak to the fact that there’s like 4,700 member banks right now. The DIF had to shell out over 30 billion with a B, and that was just three banks.
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| Barry Brooksby: | Steve, how much is in that deposit insurance fund?
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| Steve Gibbs: | It’s over a little over 130 billion total, and I’m approximating there. So if you consider three banks over 30 billion, that’s about a third of the account with three banks. And the reality of it is it looks like they have a requirement of 1.35% reserve in the account. And it has gone negative in the past. In 2010, before Dodd-Frank passed, in the middle of all that chaos, it did go negative and stayed negative for a little while. So this isn’t a rock solid setup where everyone can automatically just feel protected. In fact, with these three banks, there were people that tried to get their money out and couldn’t get their money, so the FDIC had to come in. It’s a little bit of a chilling proposition, I think.
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| Barry Brooksby: | And Steve, that 30 billion that you mentioned, we really want to emphasize that’s three banks, everybody. There’s over 4,000 banks under control or authority of FDIC. So the question is, are more bank failures coming and will taxpayers be on the hook for the bill? Because 30 billion out of 130 billion, and that’s only three banks, that money, although it seems like a lot of money, could be drained very rapidly. You mentioned in 2010, it went negative.
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| Steve Gibbs: | Mm-hmm, yep. And it was the taxpayers. If you think of some of the legislation and the bailouts, there’s always some debate. If you look in the information that’s out there, they’ll suggest that it’s not going to fall upon the taxpayers.
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| Barry Brooksby: | At the end of the day, most of these things do fall on the shoulders of taxpayers somehow. We may not see it directly, but we see it indirectly.
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| Steve Gibbs: | And there is something else about regional banks too. First Republic, I believe it was JP Morgan had to come in and rescue that as well. So it was like these regional banks are, especially a lot of people love the regional banks. A lot of the small businesses, they like the relationship. But that’s also a concern, I think.
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| Barry Brooksby: | It was NPR that reported it cost 22 billion to rescue just two of those failed banks. We’ve talked about over 30 billion for all three. And the questions again are how much more will it cost and who will pay? Steve, we want to talk about an alternative. So we recognize in real life that banks are failing. Everyone sees it on the news. We know it’s happening. So as you’re listening to the webinar today, you want to ask the question, is my money safe? We’re not saying pull all the money out of your bank, but think of it like this. If you walked into the car dealership and you were ready to pick up your new car and the car dealership said to you, “We know you purchased this car. But we’ve sold your car 10 times so we can’t give it to you today, but we can give it to you later because nine other people own the same car.”
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| And you’re like, “Well, wait a second. I bought a car.” And they said, “No, we do what’s called fractional reserve banking.”, which this is what the banks do. They loan out dollars that they don’t have. So you would be very disappointed if you walked into the dealership and they don’t have the car that you paid for, and you find that nine other people paid the same price for the exact same car. Fractional reserve banking allows banks to loan out money they don’t have. And we think, “Wait a sec, how is that even possible?” What we saw was people were making a run for the cash they had in their accounts. The banks didn’t have the funds.
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| Steve Gibbs: | Your car example’s kind of fun and tangible, right? They’re able to do it because they’re going to say, “Oh, well your car’s guaranteed.”
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| Barry Brooksby: | Yeah, you’ll have it someday in the future.
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| Steve Gibbs: | Of course we’re not talking about cars, but I think it’s a solid analogy to something that you want to protect. Barry, another quick point is just that we want to remind everybody that with the Silicon Valley Bank, that most of those deposits according to Time Magazine were actually uninsured. So there’s a huge disparity even with this 250,000 thing,
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| Barry Brooksby: | And they were uninsured because those balances were much, much larger than the $250,000.
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| Steve Gibbs: | A lot of big accounts there that were all completely vulnerable. Question being could people using that resource have had a better place to store the bulk of their wealth?
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| Barry Brooksby: | Great segue, Steve, to what we’re going to be talking about here with high cash value whole life insurance. What’s great about high cash value whole life is that it’s a fully guaranteed product. And the insurance companies that we use, the mutual companies that we use, they’ve been in business for 120, 150, 175 years, and people can put millions and millions of dollars into these policies and have it fully guaranteed.
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| Steve Gibbs: | You and I are on the front lines of talking about and educating folks on this asset. It’s such a powerful asset. And you get the financial entertainers and people that will say, “I’ve actually heard this statement that these products are horrendous.” And it’s amazing. It’s amazing. I just want to unpack it. Here we are with failed banks and the fractional reserve and the insanity that’s going on with that. And then people actually have the, I guess audacity to say something like this, a high cash value asset that offers huge guarantees for cash is horrendous. You want to unpack that, Barry for a second as to why that’s a complete misnomer or really just total misinformation when you think about it?
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| Barry Brooksby: | It is misinformation, such a naive comment. What we want to share is that these policies, because of the guarantee you’re making money every year. The money’s not tied to the stock market. The guarantees come from the mutual insurance companies that are A-plus rated, AA rated. They’ve paid dividends for over 100 years. So when someone makes a comment that whole life insurance should never be used as an investment strategy, it should never be used in anyone’s portfolio, it’s a naive comment. And what’s so interesting is if you look at what wealthy people do, corporations and even some banks, they own these policies, Steve, because they want the guarantees. They want the liquidity.
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| Steve Gibbs: | Right. So Barry, for people maybe that are starting to understand this asset or looking into it, when you’re talking about guarantees, what are you really talking about? Are you talking about what the insurance company has to keep in reserve? Are you talking about the guaranteed return on the cash that’s in there? Maybe you can unpack that for folks that are just getting some new education here.
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| Barry Brooksby: | Yeah, both. Mutual insurance companies, they have to hold cash in reserves or assets in reserves. They cannot practice fractional reserve banking. They’re not allowed to. When you go to a bank and they’re showing we’ve got 30 billion or 100 billion of assets, they don’t have all that money available for their depositors to get. On the flip side, an insurance company does. They can’t loan out money that they don’t have. Not only is their portfolio guaranteed from that perspective, but they’re also providing a guaranteed rate of return on the actual cash value growth.
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| Steve Gibbs: | So those are huge, huge points for folks that want to protect wealth. Number one, that the cash is actually required to be maintained by the insurance company. And number two, that if you put extra cash in there, you have cash value that you’re getting a guaranteed return on that cash, which you don’t have any either with a traditional bank.
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| Barry Brooksby: | Let’s look at some real life numbers.
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| Steve Gibbs: | Sounds good.
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| Barry Brooksby: | Steve, we’re going to start with a 30-year-old male. He’s putting in $50,000 a year into the policy, and we’re going to look at a few columns of cash. Number one is the guaranteed cash value. There is a death benefit tied to this because it is a permanent whole life policy, and what we find is the guaranteed cash value in year one of the 50 is 38,810. And you say, “Well, where’s the remaining 12,000 that I put in?” A portion of that is purchasing a 1.6 million permanent death benefit, but only 735,000 is true whole life insurance. We’re trying to keep the cost down, but notice what happens. The guaranteed cash value is growing every single year. There’s never a year where the guaranteed goes down. Why? Because it’s guaranteed. You’re always guaranteed to make money from one year to the next.
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| The non-guaranteed cash value includes the dividend. And this is more accurate. These insurance companies we use, they’ve paid dividends, as I mentioned earlier, for 100, 120, this company over 175 years. Once a dividend is paid, it’s now locked in and it becomes guaranteed. So the column of cash that says non-guaranteed total cash value would be more accurate. We find that this person puts funds in, and I’m going to go to another screen here because I’m going to show you that it’s a flexible premium. We’re showing 20 years of funding. In year 21, no more premium going in, but what happens to the cash value? It’s still growing, Steve by $96,000, $101,000, $106,000 and more every year, and he’s not putting any more money in. So his total contribution over that 20-year timeframe was $1 million. And even in his 50s, 60s and 70s˚, look at this cash value continuing to grow with no more premiums.
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| Steve Gibbs: | And I’m also eyeballing the death benefit over there, Barry, as we’re talking because there’s just a bunch of things. If you guys are just getting into this, you’re going to hear entertainers with different theories about this stuff. And again, naive because some will suggest that the insurance company will keep your cash value, but you can see that growing death benefit over there so that’s not accurate. These two numbers sort of correspond. Correct, Barry?
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| Barry Brooksby: | Yeah. So let’s say that misnomer that is put out there that hey, never get a whole life policy because the life insurance company keeps your cash value. Remember in this example, this person purchased about $700,000 to $800,000 of actual whole life insurance. Well, if we add 800,000 to the 2.7 million and they pass away, the family in that instance would get what? 3.3 million, 3.4 million, if that were true. But because this is a properly structured high cash value whole life policy, his family would actually get 5.1 million. So we’ve completely destroyed that myth that the life insurance company keeps your cash value. No, your family would get more than you actually paid for.
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| Steve Gibbs: | Yeah, that’s an awesome point. And the other point is that some people may notice there’s more death benefit upfront. This is why, Barry, I’ll just speak to people that are needing to understand this, that this has to be properly designed in order to meet the cash goals that the person has, and you have to have that death benefit a certain way because of what we call the MEC limits. And we have other webinars on all this stuff, guys, but I want to point out that the reason there’s more death benefit early on is to kind of meet the standards that are set out by the IRS to make sure those tax advantages are going be available with the policy for the cash value growth and everything else. Correct, Barry? Is that a fair statement?
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| Barry Brooksby: | Very fair. When people come to us and we design illustrations for them, they can be assured that they’re going to get the best policy and the best design out there. We don’t want people paying for more life insurance than is necessary. So we’re going to go right up to the MEC limit to maximize cash value growth, which means you purchase the least amount of life insurance and you get the maximum amount of cash value,
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| Steve Gibbs: | Which turns the sort of traditional whole life model on its head a little bit. And that’s another thing that’s often confused by many.
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| Barry Brooksby: | Yep, exactly right. These are again, uniquely designed high cash value whole life policies, and all this cash is liquid. If this person wants to take policy loans earlier, years 10 or 15 or whatever, they can. But if they also want to now use this cash for retirement income, let’s say at the age of 65, Steve, I teach my clients how to turn this 3.5 million into about 4.4 million tax-free as a stream of retirement income. And you might say, “Well, if there’s 3.5 million there, how do you get 4.4 out of it?” That’s why you want to meet with me to learn more. So if you can take $1 million and turn it into 4.4 million tax-free and you have a permanent death benefit that you can also leave your family, it’s remarkable. I say this over and over again. It’s absolutely remarkable when you see the guarantees in this particular product.
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| Steve Gibbs: | Yeah, and for someone listening, you may have different goals. You mentioned retirement planning, which is a huge topic that we’ve talked about. Talk about college funding. You can talk about even things like long-term care planning, which relates to the living benefits and using the cash value for that. So many different applications, real estate investing, storing cash for business uses. All these different people are using banks for the most part, and yet, is that a favorable option? This is really making a case that it isn’t, that you have much better options. And so this is exciting to see on paper, Barry.
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| Barry Brooksby: | Yeah, what we want to show with people is consider having a policy in your portfolio. Don’t store all your cash in the bank. Don’t have all your cash in your 401(k) or your IRA. By adding this asset to your portfolio, it’s going to enhance things overall. Some people might be asking, “Well, what is my rate of return?” So let’s show this. Steve, this particular policy we’re looking at is earning just over a 5% return every year. Now, some people will say, “Well, I was down 12,000 in year one. How can you say I earned a 5% return?” We have to look at the policy over the course of someone’s life, but it’s as if this policy would have earned 5% or just over 5% tax-free every year. So what I’ve done is I’ve put the 20 years of funding, the 50,000 that we did in the policy. Starting year 21, there’s no more money going in. So here’s our million that went into the policy.
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| In 50 years at the age of 80, we’re showing 7.53 million, 7.5 right there at 5% return. Well, when we look at the illustration and go back to the numbers, age 80, here’s our cash value column right here. Age 80, there’s our 7.5 million. So it’s as if this person would have earned every single year a 5% rate of return. Now, how would that compare to a savings account or a mutual fund? Because remember, those other types of investments are taxable. So the first thing we want to do is let’s look at the tax, and I’m just going to use a fair 22% overall marginal bracket.
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| Steve Gibbs: | Pretty low tax rate actually.
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| Barry Brooksby: | Yeah, pretty low. I mean, we could use 30, we could use 35. I want to be fair. And let’s say this money was managed and they were paying a 1% management fee to their broker. So what we’ve got to do is we’ve got to get the actual return to equal 5% to find out what would they have to earn in their other account. So let’s go to 6.5, too low. Let’s go to 6.7. Let’s go to 7. Let’s go to 7.3. 7.6, 7.5. There we go.
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| Steve, think about this, and I want everyone to listen very carefully. If you had a mutual fund or a savings account for that matter, you would have to earn 7.5% every year without ever having a losing year in your stock portfolio, your ETFs, your mutual funds, your 401(k), your IRA, no losing year ever to net 5% tax-free in a policy. So I say over and over again, 5% tax-free in a high cash value whole life policy, Steve is remarkable.
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| Steve Gibbs: | Yeah, and that’s certainly something that is tossed around a lot, the returns. And you’ve also done this analysis, Barry, by looking at the actual 20-year S&P. So that’s an interesting one as well.
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| Barry Brooksby: | Yeah, same thing. There’s so much volatility there. The S&P just last year, I think lost 22%. There are some years that’s earned 20 and 30, but because of that sequence of returns,˚ losing years combined with gain years, we don’t know what someone’s going to earn from one year to the next. But that sequence of return lowers the average rate of return to a smaller actual return. And people don’t understand the sequence of returns. We want people to be very clear. If you have a 20% loss in your portfolio, it takes about a 25% to 27% gain just to get back to even. You can’t lose 20 and then gain 20 and think you get all your money back. It doesn’t work that way. The math doesn’t work that way.
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| Steve Gibbs: | Even wealthier people, sometimes they seem to have this idea that they can do better than 5% every year, which is really incredible. And I think what you’re doing is you’re stacking up all these benefits for people to consider, right? So you’ve got the guaranteed growth. You’ve got dividends. You’ve got the tax advantage, which is made available under 7702, different webinar. But a lot of people don’t even know that provision. They know 401(k) very well, but they don’t seem to know 7702. Well, Barry, what would you tell people that are convinced though by a lot of the talking that’s out there, that they can get an average S&P return of 8% to 10% or something? Some of these numbers are just thrown around. What’s your thought on that?
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| Barry Brooksby: | This is the last 25 years of the S&P 500, and the average rate of return is 7.28%. So it seems appealing. And even some of these years, I mean look at this, 1998, 26% return. Again in 2003, a 26% return, 2009 a 23% return, 2013, 29. I mean, very, very high returns. Well, why is it averaging only 7.28%? It’s because you have to factor in these losing years and what it takes for an increased return just to get your money back. But Steve, what I’ve done is I’ve taken those returns of the S&P 500 and put it into the cash flow calculator. It’s our rate of return, 7.28%. But why is the actual return zero? It’s because right now, this is only math. We haven’t put real money into this. So let’s do that. Let’s put in $100,000 a year and watch what happens to the actual return.
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| It reduces to 6.7. You might say, “Well, wait a sec, my average return was 7.28. Why am I really earning 6.7?” Because when you put money into the math, this is what we call sequence of returns. You have to factor in the losing years, take a higher return to get your money back. But we also want to look at taxes. Let’s use that same 22%. It’s going to erode the return down to 5.57. And if this is managed money, we’ll put a percent in here. So when people hear, “Oh, I’m going to average 7% or 8% or 10% in my S&P 500 index, an average rate of return is meaningless. It’s a gross number. You have to look at your actual returns.
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| And what about someone that went through this 25-year experience? They lost money three years in a row or here, they lost 38%. What about the emotion? What about the feelings they have going through life? Are they content? Are they, “Oh, everything’s fine.”? No, most people buy and sell emotionally. And when you lose 38% or 23%, most people don’t stay in the index. Most people are doing something else.
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| Steve Gibbs: | Right, that’s very common. And if they do stay in, they’re going to be losing sleep. We talk about this. One term we use is the intentional wealth effect. Huge difference in peace of mind, not to mention all the other advantages that we’re talking about.
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| Barry Brooksby: | And what if someone were in a higher bracket of tax, which pays for a lot of people? What if I move this to 30%? Or what if your money manager is charging you one and a quarter? All these things play a role. What I want people to walk away from here is an average return does not equal an actual return. And if your actual return is 4.2%, but you can do better in a high cash value whole life policy, without all the worry, without all the sleepless nights, without all the volatility, trust me, you’re going to have a much more peaceful life. You’re going to be more fulfilled. Your money’s going to grow no matter what’s happening in the market or the economy. That’s powerful. That’s certainty. That’s predictability.
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| Steve Gibbs: | That’s the intentional wealth effect kicking into gear for people too. Good stuff, Barry. Really good illustration. And the interesting thing is, Barry, that we’re not always even trying to compare apples to apples with somebody’s investment account, but when we put these numbers out, it really smacks you in the face. We could ask people to consider this just as a safe bucket in and of itself. It has so many different qualities to it, asset protection, guaranteed growth, these kinds of things that a trading account or a bank account or whatever doesn’t have. When you add the actual numbers, it just gets very compelling.
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| Barry Brooksby: | Yeah, I agree. Let’s look at our final illustration, and I’ve run this on a 40-year-old female. What she’s doing, Steve, is she’s adding a lump sum because a lot of my clients ask, “Can I put in a lump sum to really turbocharge my cash value growth?” So her infinite banking, high cash value whole life design is set up at 25,000 a year, plus an initial lump sum of 75,000. So in year one, her contract premium, 100,000 goes in. And Steve, if this were traditional whole life, she would have $0 of cash value. That’s just how traditional whole life works. This is a uniquely designed, properly structured high cash value whole life policy. So when the 100 goes in, what does she have available in net cash value? Over $95,000. That’s 95% of her premium available in first year cash value.
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| Steve Gibbs: | Right, and I see that little PUA over there, paid up additions. That’s a part of this that you will get to know if you don’t already. And we’ve done some other videos and webinars on that topic, which is a powerful aspect. Barry, if you had $0 of cash value, that could rightfully be deemed horrendous if you were looking for a place to put your cash. And maybe that’s where people are just completely confused when they’re being negative about this stuff.
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| Barry Brooksby: | Yeah, and that’s what we want to emphasize over and over again. These are properly structured high cash value policies.
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| Steve Gibbs: | Well, yeah, and Barry, you’re bringing up lump sums because that thought crossed my mind. If people have a large sum in a bank account, this kind of thing can become powerful for them when they realize they can put a lump sum in and have a lot of it, the majority available in year one to utilize.
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| Barry Brooksby: | And that’s a suggestion we want to make. Because of the bank failures, seriously consider moving some of your cash out of your bank and putting it into a policy. And as you can see, the lump sum really does turbocharge the cash value overall. Matter of fact, Steve, this policy just about breaks even in year three.
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| Steve Gibbs: | Look at that death benefit too. So Barry, what about buy term and invest the difference? Somebody that’s watching is thinking, “Well, but somebody told me buy term and invest the difference.” This looks pretty darn good as opposed to term. I have a pretty long estate planning career behind me. Permanent death benefit’s real good actually. What do you say to people that are thinking, “Oh, well, I should just buy term life.”?
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| Barry Brooksby: | Two things. Number one, less than 2% of term insurance ever pays out a death benefit. So most people that have it are never going to use it. Now, I’m not saying don’t ever have term insurance because I believe there’s a place for it. I even have some term insurance because I still have children at home. But to buy term and invest the difference, most people aren’t investing the difference. And what happens when your term insurance goes away in your 60s, and now you have all of this pressure on your other assets? But the second point I want to make is these properly structured high cash value policies have a term rider added to them. So this particular policy is only $120,000 of whole life death benefit. The remaining death benefit we see here is coming from a term insurance rider, and we do that to lower the cost to raise the MEC limit and allow more cash to go into the policy.
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| Steve Gibbs: | Well, that’s why you see a drop off there in year eight it looks like, because that term is actually dropping off. That’s part of the whole properly designed approach that we’re taking here.
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| Barry Brooksby: | And check this out. Even though it dropped and there’s $712,000 of death benefit, this person only paid for 120,000 of whole life.
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| Steve Gibbs: | The other piece of this, when you have a business, you have real estate investments, is the liquidity piece. This death benefit is not taxable for folks. It’s all liquid upon death. It’s so different than if you have other kinds of assets, retirement accounts and these kinds of things, so just something to be aware of, very powerful advantages there as well.
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| Barry Brooksby: | Yep, tax-free money. This cash is liquid as you mentioned. Clients can borrow up to 95% of total cash value. They can use it for retirement income and what a legacy. So let’s talk about 10 reasons why people would want this in their portfolio. Number one, guaranteed growth of your money. No fractional banking with life insurance companies. Security and control, you’ve got guarantees so you don’t have to worry about things. Tax-free and tax advantage growth, asset allocation. You add this asset to your portfolio. Overall, you’ll have a more robust portfolio. Cash reserves for investing and emergencies. No required minimum distributions. Asset protection. Steve, you love this one as an estate attorney. You love legacy and estate planning, right?
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| Steve Gibbs: | Yeah. The asset protection piece is, I mean, if you end up in a lawsuit of some kind, you got protected cash. If you think your bank account’s protected from lawsuits, you’d be sorely mistaken. Those are vulnerable accounts. Again, you just have layers of advantages. I talk about this stuff a lot in my education approach with people. And when I came upon this asset years ago, Barry, and we’ve talked about it, I saw the layers of benefit as an estate planner and it really drew me into this area. Lots of different aspects of this that people can consider on multiple levels of benefit.
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| Barry Brooksby: | And we would never advise anyone to use term insurance for legacy or estate planning because those policies eventually are going to expire and most people will outlive their term insurance policies.
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| Steve Gibbs: | Right. I mean, it’s happened to people that I’ve known pretty well that ended up having no life insurance whatsoever in their older years. And there’s also a huge bit of wrong advice on that issue, Barry, right? People should self insure. It’s just amazing the stuff that I’ve heard as a planner. There’s no self-insuring your estate. What happens is that you have a fire sale upon your death where all of your assets need to be dumped because you don’t have enough liquidity in the estate unless you’re one of those rare people with just huge piles of cash upon death. Just something additional to think about.
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| Barry Brooksby: | Love it. And number 10, no pre-age, 59 1/2, 10% tax penalty. These are non-qualified plans, not subject to the IRA or 401(k) or 403(b) laws when done correctly. So there’s more than 10 reasons, but these are 10 reasons for having high cash value your whole life in your portfolio. We want everyone listening to feel the incredible opportunity here, having a product that does multiple things at the same time.
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| Steve Gibbs: | Just to comment as to that last point. Our government officials keep chipping away at the IRA, 401(k) death beneficiary rules. So those aren’t even as good as they used to be. If your beneficiary gets your IRA or 401(k), they actually have to have all those distributions made within 10 years now unless they’re a spouse. So that’s another thing where if you give somebody a lump sum, they’ve got total control and flexibility with that in a life insurance policy.
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| Barry Brooksby: | That’s right. Steve. Control, predictability, guarantees, the benefits go on and on. We encourage you to add this to your portfolio. Steve, we want people to take the next step. Look at your own numbers. That’s what we recommend. Look at your own numbers. Let me design a plan for you, a properly structured high cash value whole life policy. When you see your own numbers, the light bulb goes on because now we’re talking about your goals, your premium amounts. So you can click the website link or the button to take the next steps or you can visit insuranceandestates.com.
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| Steve Gibbs: | Great stuff, Barry. I encourage you guys, connect with Barry. We’ll have a link to his calendar wherever you’re seeing this. You can also email him at barry@insuranceandestates.com or visit the website and check out resources, team bios and all that kind of stuff. Thank you guys for joining us. A lot of other webinars on all these topics if you want to get more in depth on anything that we talked about.
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