Question: Whole Life and PUA Policies

[confusedxx]

Hi All,

I am looking seriously at the infinite banking concept as a vehicle for (1) growing wealth and enabling me to currently keep investing (I invest in turn key buy and hold real estate) and (2) providing the family with a insurance for when I do pass away.

Is anyone familiar with Whole Life insurance policies and Paid Up Additions as a means for generating income after retirement and also for funding further investments? If you are doing this, please share your view? Has it been worth it?

Cheers,

ConfusedXX

 

[brewer12345]

Its a terrible idea. Run, you are about to be fleeced.

 

[confusedxx]

Hi Brewer,

Thanks for the prompt feedback. Please do explain how I am about to be fleeced. From what I can see, it looks like a strong policy and is well structured. To further assure me, I know a person who I respect. He now is financially independent, owns lots of property and has been advising colleagues and friends via his mastermind that this is something that helped him to make it.

While there are still lots of things I am not totally understanding about it, I am curious. Do you have experience with this?

 

[euro]

I don't have any useful info on your specific question, but I'm interested in your turnkey rentals: are those in Switzerland or back in the USA?
Just wondering because Switzerland has always seemed like an extremely tenant-friendly place to me, so being a landlord there must be tough?

 

[confusedxx]

Hi Euro,

I investing in rentals in the USA - Midwest markets. I love this investment vehicle. I wasted years and lost a lot in stock markets, fx markets and wish I found real estate earlier

 

[brewer12345]

Confused, I spent the bulk of my career dealing with life insurance management teams and actuaries (the people who run the insurance companies). I am painfully familiar with how these policies work and what they cost. You would be far better off simply investing in index funds due to the very high costs and lack of transparency inherent in these policies.

 

[REWahoo]

I wasted years and lost a lot in stock markets, fx markets and wish I found real estate earlier

Stick with real estate or you'll be adding "infinite banking" to your wasted list.

Paying high fees (insurance costs) to get market returns is a strategy to enrich the insurance industry and their sales force, not you.

 

[mickeyd]

Whole Life insurance policies and Paid Up Additions as a means for generating income after retirement

Seems like a good way for the insurance agent to fund his/her retirement.

 

[braumeister]

While there are still lots of things I am not totally understanding about it, I am curious. Do you have experience with this?

That kind of statement bothers me. Seems like instead of digging in and trying to understand the fine print, you're asking strangers for opinions. No offense, but my guess is that you're smart enough to figure it out for yourself, but these kinds of things are deliberately made opaque for a reason. That alone is a warning bell.