Bradley Millon
Active 1 year, 11 months agoForum Replies Created
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Posts
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Rafael,
I have universal life “infinite banking” policies for myself and my wife. The big advantage in my mind is that if you need to take out any money you can take a loan against the policy vs. taking a withdrawal so your account can theoretically grow faster and last longer than if you put the same amount of money into a 401(k), IRA or into Mutual Funds/Stocks. Plus since we use the direct deposit option we essentially are paying ourselves first since the money is just taken out every month.
Some disadvantages are that you need to qualify health wise since it is life insurance. Your advised to put $1,000 a month minimum which may or may not be a big deal for your situation. You are locked into the payments once it starts and there is about a 10 year period before your cash balance equals the amount of money that you put in due to all the fees and commissions. And there is no tax free/deferred advantage. So it is a long term play.
We opened them up partly because of all the restrictions on IRAs like Jackie discussed.
Brad
JP,
I have a Checkbook IRA but they can be dangerous if you aren’t educated on all the Prohibited Transactions and other rules like how you can’t pledge your IRA as collateral.
I have multiple IRAs (Traditional, Roth and CESAs) in my IRA LLC. I think if you have a 401k that is with an employer that you currently work with that there isn’t a way around the 50% loan restriction. Only once you are no longer working at the company can you do a Rollover IRA that could be apart of your Checkbook IRA LLC.
Like Jackie said the Checkbook IRA doesn’t get you around any IRS rules and the responsibility is on you to know them all.
Brad
Hey Jackie,
I am definitely interested in doing HBSs in North Carolina.
They are perfect for getting top dollar in our ultra-hot market here.
Brad Millon
[email protected]
