Health Benefits time:How to Get Entirely Tax-Free Retirement Income?

This is scary to know, esp insurance companies playing with options !

First, what is rate of interest for this loan? No one will give such loan interest free for life until 60 !

This is not answered.

The above statement is not correct. With such face value, the insurance industry will be bankrupt in few years.

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I know, Jil, we have had people going “no way! That can’t be possible!” but it is. Once they understand they will use their expenses to earn them some income when they retire, they sign up and they bring us more and more referrals.

Other companies out there, make you be able to loan only 20% of your money, if you have paid premiums for 5-10 years. We see those policies sometimes too late. The insurance agent pocketed lots of $ hurting the individual who can’t touch that money for a very long time. That’s what makes us different.

So, whatever you see, is whatever you are going to get according to the stock market doing good. Numbers will change is there’s a return or 12% or less. But the excess premiums paid into these policies won’t lose a penny like in 2008-2009.

Yes, I know how he made the empire from GEICO.

Yes, no one will believe. Even Warren Buffet can not make it, that is the reason !

With $488/month, all they make it is $814021 at 7% rate in 34 years (60 minus 26)

With $3400/month, they will reach $5671460.52 at 7% in 34 years and they can pay every month $35395.17 (yearly $424742) for next 39 years (Age 99).

All they need to do is blindly buy SPY or VOO to reach 7%. There are plenty of tax advantaged avenues (Roth 401k, Roth IRA and HSA) which are not taxed.

The Risk what the 26 Female is paying 3400/month as premium - one way traffic to insurance company - and she does not own those. She has to wait 34 years to reap the benefit. Remember if something happens like AIG in 2008, she need to shoulder the issue.

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Wow, where to start. The second image is clearly from a different illustration. You go from policy year 26 age 51 to policy year 52 age 77. Then the third image is the continuation of the first image policy year 27 and age 52. Notice the planned annualized premium is $40,800? That’s NOT $488/mo. That’s $3,400/mo. Notice the loan value is zero until age 60? That’s how the policy accumulates so much cash value. The person is paying in $3,400/mo for 35 years without borrowing against it. Saying by year 10 $100 goes in and $100 goes out is flat out wrong. You’re either super ignorant or committing fraud.

Jil is right. If you borrow against the policy, they charge you interest. That lowers your returns. It’ll lower the cash value later, so you there will be less to borrow.

Also, it won’t pay $400K “for life”. You can see the cash balance declining each year. At some point, it will reach zero if you keep borrowing $400k/yr.

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Now, let me go and watch a soap opera with mi wife, I just came from issuing another life insurance policy. Cha-chin!:smile:

DISCLAIMER )My keyboard went crazy, I can use the keynotes correctly).

Dude…I don’t have time for teenager stuff, the pages are transposed, #3 should be #2 and so forth. :scream:

Do you understand English Marcus?

I am going to treat you as your age. The alleged premium of $3400 has 2 components. Cost of insurance COI and loans. COI is $600 or $488, whichever amount you like. Loan every month is $2800, so stop with your ignorant remarks, she is loaning $33,600 every year! She stops loaning at age 60 because she is not paying premiums anymore, she receives $400K as retirement income then. Did you understand that?

The loan is the $2800 every month x 12 x as many years. She can still contribute to her policy after age 60 is she likes, making the numbers so huge.

Are you good with math?
Year 10, she has paid premiums for $408,000 ( $58,640 or $72K of her own pocket) but the cash surrender value is $472,102. Thats the money she has been or will be able to loan up to this point. Which ones is larger? $408,000 or $472,102?

See? I just noticed something. She contributed $72K but has earned what? Thats right! $64K, its the difference between 10 years of contributions and the cash surrender value, which means she has contributed only $8K from her own pocket. It is then, an $800 a year policy, it is beginning to look so great! Not even $150 a month. Dang!

Darn it! I am so tired by just thinking how good this is.

Use your brain, try to beat that. :rofl:

No, that’s not what your illustration shows. You’re a dangerous fraud. She’s not borrowing every month. You can see the loan amount is zero until age 60.

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Marcus understanding is perfectly right.

Based on your screen shot, the person is paying $3400/month premium until the age of 60.
Insurance keeps that month, grow at the rate of 6.88% compounding.

At the age of 60, Insurance provides her annual loan of $424742 (and they state this 424742 as her income) every year. Since they declare as loan, IRS or state can not tax it. This is completely done in insurance books as loan.

At any time death happens to her, net death benefit is provided to the heirs as insurance internally adjusting her accumulated loan with accumulated value.

In short, Insurance company is owning her wealth, loan by taking a premium from her.

She lives using the loan and dies one day, IRS sits in sideline seeing her loan paid of my death, Insurance company survives for ever. Insurance company acts as Cayman Island Firm.

It is an insurance Gimmick ! Interesting way !!

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So much ignorance, where do I start?

I will reply with the same courtesy you treated me with.

I know, I dont think, I know you are an… No doubt about it.

You just dont get it even though I explained you what is a loan and what is an income.

Simple facts.
$3400 a month premium, or contribution, she loans $2,800. $600 is the cost of insurance. Those $2,800 are loaned and spent by this lady, the insurance company creates a collateral account where the spent $2800 are invested. And that account is what is earning the % according to the indexing in the S/P 500. It is as it is, I cant change anything you moron!

She is not borrowing every month. LOL…She is loaning $2,800 a month, didnt I explain that?

When she is 60, she gets an income of $400K plus! It is what it is, again, Mr smart, I cant change what the illustration says. Get it ignorant boy?

If I were you, I would go slightly when it comes to accuse anybody of being a fraud. Fraud as you know is a felony and the DOI is catching up to the perpetrators. I would suggest you to better start taking some comprehension vitamins before you open your uneducated mouth. Only an ignorant or dumb person would try to surpass the knowledge of somebody doing this for a living, or, as it is going on here, trying to beat a mathematical illustration approved, sanctioned and scrutinized by the state of CA.

I dont run a scheme, I dont hide anything, this is an illustration approved by the state of CA, the same state you cry baby are berating everyday by saying it is too much of a controlling freak government! :sweat_smile::sweat_smile::sweat_smile::sweat_smile::sweat_smile::sweat_smile::sweat_smile:

Gee! Do I need to tell you that you are a FILL THE BLANK guy one more time?:rofl::rofl::rofl::rofl::rofl::rofl:

:v:

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Maybe you can explain why planned annual loan is $0 until she’s 60. She’s paying the $3400/mo every month until she’s 60 without borrowing any of it. If you don’t see that, then you can’t read your own illustration.

This clearly explains my friend. She contributes premium 3400 out of which $2800 goes to investment account and $600 goes to insurance account. You said company makes it collateral. Can you explain more? Whether company maintains in her account or company;s account that $2800?

But your original statement was wrong (and that created all these discussions) ==> “So, where can you buy a property for $488 a month, or for a total of $199,104 (30 years, not lump sum) that is going to give you an annual income of $424,742 for the rest of your life after age 60?”

Same wealth as the banks living out of the mortgage of homeowners and investors? ==> Slight change, not regular loan but may be like reverse mortgage. Whatever owner gets monthly income from reverse mortgage is not taxed until his/her death.

Same as those opening 401Ks.==> Right. Now, I understand why you are targeting 401k ! The only difference is the entire wealth belongs to owner in 401k, but in insurance it belongs to company.

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Exactly. That statement of paying $199K to get a lifetime income of over $400K is false.

You know what?

I have explained the loan of $2800 out of $3400 every month.

After that explanation, I think I am dealing with an idiot. That simple.

Wow, I guess you really are a fraud. You’re sticking to the loan story even though the illustration clearly shows $0 in the planned annual income and planned annual loan columns until age 60. You’re sticking to she’ll only pay $199K total over her life to receive $424K/yr starting at age 60.

Dude!

Even Jil got it. You are really cry babying.

Planned annual income is different to loaning. Are you that dense?

We make a few illustrations, we play with certain tools we have within this policy and the owner decides to start “planned annualized income” when she is 60. Gee! You expect the IC to give you $100Ks of income next year when you only put a few $1Ks?
Do you know how the compound interest works?

I am going to repeat something I hope penetrates that dumb brain you have on top of your shoulders. Typical Trump supporter. This is an illustration that is contractual, I can’t change anything. Well, what I can change is yearly or monthly premiums, age, health, loans, strategies, and age for income to start kicking in. The illustration is something that nobody can change after the policy is signed, any agent hacking this-if he could- will go to prison for the rest of his life. Only the owner can do yearly or 3 times changes on strategies, it all depends on the IC. Gee!

Fraud? Do you know fraud is fraud when it happens? So much for knowing about law and constitution, don’t you? :crazy_face::sweat_smile::joy:

You are in denial, you are Mister “I brought this graphic, data, etc. and needs to be believed because I brought it to the forum”. Now that I bring you something validated by the state of CA and the IC, you go in a rant about fraud.

You are wishing to have something like this policy, but your prejudice or ignorance is bigger than your brain, isn’t it? :crazy_face::crazy_face::crazy_face::crazy_face::sweat_smile::sweat_smile::sweat_smile:

Thanks for playing!

Now, let me talk to people who want to be victims of my fraud, will ya? :smiley::smiley::smiley::smiley::joy::joy::joy::joy::rofl::rofl::rofl::rofl::sweat_smile::sweat_smile::laughing::laughing::laughing:

Lol, now you’re changing the story of the scenario. This is awesome. Now even you realize your statement that $199k of payments turning into annual income of over $400k/yr is false.

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Thanks buyinghouse. Some questions to better understand your illustration:

#1. Is the entire premium of $3400/mo tax-exempt? If not, how is this more favorable than term life plus Roth 401k combination?

#2. If I look at age 70 in the illustration, planned annual loan is 770,755 while planned annual income is 424,742. Is the difference of 346,013 cumulative interest charged by IC on the loan?

#3. Can the policy holder surrender the policy at any time and IC will give them the cash surrender value? If no, then what’s the significance of this amount? If yes, will cash surrender value be taxable?

#4. Is the entire net death benefit tax-exempt?

#5. Which index is growth rate for accumulated value linked to? If this index gives negative returns in a given year, will the cash value decline?

Note that premiun 3400 is after tax, but that goes to Insurance company. At the age of 60 onwards, they provide loans 424k/year every year until death. At death, the loan+interest is set aside with death benefit (of premium 3400). Since they are giving loan 60 to until death, IRS can not charge.

But, we need to pay $3400 every month and live at the mercy of Insurance company after 60th age.

If they file bankruptcy at the age of 59, we are doomed !

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Thanks for the questioning Jil. I know you’ve been grasping the idea, you are getting bits here and there, you are not familiar with this type of policies, but you are getting there, still lots to learn, you are not like some ignorant people who tend to throw false accusations without any proof.
It makes me remember many things and refreshes my knowledge, which is not that good, but still useful knowledge
:+1::heart_eyes::sunglasses::joy:

This is going to be exciting learning experience for me! I hope you learn something. Ready?

YOU SAID: Note that premiun 3400 is after tax, *but that goes to Insurance company. OK. This is what is called “non-qualified money”, you don’t get tax deductions and by the rules of the 26 U.S. Code 7702 & 7702A and so on, any money in life insurance policies, the loans and income are tax free.

Of course the money goes to the IC. Who gets your 401K contribution? Your uncle or your 401K management firm? They will play with your money at your own choosing and they will be holding it until you are of age to start required contributions, and still charge you while you have any amount there, or penalize you for withdrawing before age or not paying on time, right? Basically, it is not your money until you have it in your hands, meanwhile, many things can happen in favor of the management firm, or IC. While you keep any money there, they are earning $ by charging you fees, and there are lots and lots of hidden fees. Everybody called an investors knows that.

I thought you understood, please, stop, you are confusing and making your followers more confused than what they are now… Oh…who cares! They are gone beyond any help! :rofl::rofl::rofl:

Let me explain you and your followers for the 5th time, again and again, how it works, remember, I am not the sharpest tool in the shade with my English. Open your mind, it will be easier, I am not asking you to get a policy with me, you guys posting on this forum are burned, done by me, you are focused on something else, your own pick, not mine, live by the sword, die by the sword. I just do it as a way to instruct and make people think there are other ways to make better use of their money without being called in the middle of the night for repairs and, of course, to defend my honor since an ignorant boy here called me a fraud, like his traitor, kissing Putin’s rear end 4 times draft dodger, coward president disparaging the American security agencies by believing and siding with a Communist and murderer . Ad paid for by and supported by the DP, or Bernie. Hey! I am for sale at the best bidder! :sweat_smile:

This policy, jokingly, basically works with air. Yes, out of $3,400, $2,800, yes, two thousand and eight hundred dollars go back to the owner of the insurance policy in a form of a loan month after month. The rest is to pay for cost of insurance- $600 =COI.

I am not bashing 401K but that’s the program you like and understand.
I am going to give you a challenge:

You open a 401K policy for $3,400 a month, or any smaller amount. Can you ask your 401K manager to loan you 75%-80% out of it month after month and still keep the 80% there earning good returns and never pay back the loans? Can you?

YOU SAID: At the age of 60 onwards, they provide loans 424k/year every year until death. At death, the loan+interest is set aside with death benefit (of premium 3400). Since they are giving loan 60 to until death, IRS can not charge. You kinda hit the ball out of the ballpark here. Except it is income, and you stop paying the $3400 at age 60. I asked you to work your numbers, if we see it this way, you are getting $424K annually for the pity amount of $600 a month contributed during 34 years. I know, I have to mention the $2,800 monthly loan to wake up some people, but that is like playing with Monopoly money, in and out, burned, spent to pay your mortgage, your gambling addiction, second or third wife, whatever! Yes, the IRS is out of the game here. Don’t you like it? :laughing:

You said: But, we need to pay $3400 every month and live at the mercy of Insurance company after 60th age. I explained it over and over, you stop contributing at age 60, that’s the input I was asked to choose. You are not forced to pay more premiums at 61, the account has grown so large, you are punished by the IC when receiving an income of $424K. Isn’t that horrible?

Mercy? Oh boy! I would like to be at the mercy of any insurance company giving me $424K a year, dang! Bring it on, make me their victim!

So, I explained above what is a COI and what the loan is all about. And, I hope you didn’t miss where I said you stop contributing at age 60, no more $3,400 monthly premium at age 61,62, etc. Got it?

Well, I lied, you can still contribute, but…what for? You can stop the income of $424K, or any less amount if you want, the bad thing is that you will live a miserable life with no income, and that policy will be in the tens/hundreds of millions of $s when you die. Why? Enjoy life!

You said: If they file bankruptcy at the age of 59, we are doomed ! You are more exposed to lose your 401K than a life insurance policy/income by the actions of bad business decisions from an IC. Proven in 2008-2009!

SECOND CHALLENGE:
Google all you want, bring me 3, or at least the name of a bankrupt life insurance company in the US any years back or present time for educational purposes. I will give you one day. One day! Remember, I said, “LIFE INSURANCE COMPANY”. I will be waiting an eternity for you to bring me the names of 3 of them that went BK.**
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Just let me know when you find them…:wink: