3/10/2024 0 Comments Ibc bank online![]() Build up and build up then sell to use the money. Unfortunately.ģ) stocks are an example of “accumulate and then distribute”. A red flag.Ģ) no one, warren buffet included, can predict what the stock market will do over the next ten years. If they are somehow no cost, then the policy isn’t properly structured. Subtracted 15% of capital gains tax to get the final in-hand $ amount.ġ) loans from your IBC policy are not “free” and should never be sold as such.Used the compound calculator on nerdwallet to calculate this.Investment of $6000 per year with an interest of 7% compounded annually.The Loan interest that this financial firm is offering is 0% after 10 years, so for all intents and purposes, I can take the money out from IBC for free after 10 years and so am mainly comparing that time horizon with the stock market.įrom the chart, I see that if I invested (Myself) in both growth conditions, I still end up with more money than the surrender value of the IBC. I compared the $ amount I could pull out from the IBC to the amount I would get if I just invested in stocks and after I paid taxes etc. He gave me the numbers which had surrender values for various growth estimates. I was approached by a financial agent to invest in IBC and decided to do a comparisonof their Surrender value to the money I would have got if I invested in the stock market for various number of years. If I just want to take out a chunk of the cash for another investment or vacation and not pay the loan back, would the growth still be based on the amount prior to my withdrawal? I understand that even though you take a loan against that, the dividend growth is still based on the original Cash value, but that is if you pay off the loan. By "accessing" you are taking a loan against your Cash Value. The replier mentioned minimizing the Base premium and maximize the PUA (Paid Up Additions) so that you can access liquid cash as soon as possible. The replies to one of the posts on here gave me a good insight into how IBC should be used. The death benefit is just a nice-to-have for me. However, in my case, I am not excited too much about the Death Benefit as I want to enjoy my money while I am alive. You want to provide for your family/loved ones after your death.You have significant surplus disposable cash and want it to grow tax-free without the Roth limitations.I'm new to IBC and while I know it's not a scam like how people like Dave ramsey tout it to be, I am struggling to understand how this is better than just investing in the stock market.įirst of I want to mention that I totally understand that this makes total sense if:
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