An Alternative Banking Option - Encore
Common Sense Financial Podcast
The Concept Behind a Specially Designed Life Insurance Contract
The idea is for this to be used as a cash alternative or bank alternative. We're talking about fulfilling the need for capital on an ongoing basis using the cash value of the insurance policy. A specially designed life insurance contract has a special feature that allows the policy owner access to money through what we call non recognition loans from the insurance company. This design allows for uninterrupted compounding growth.
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Speaker 3
So we'll be, we'll be talking about both of them in a few weeks. Yeah. And then real quick, lastly, we have a message here from Adam
Speaker 2
Oh, who, who has been our, uh, you know, he's been monitoring our magnificent Anderson, by our, I mean, my, my, magnificent images.
Speaker 3
And he says, I just saw this article and I couldn't not share it with you.
Speaker 2
Apparently the magnificent Amberson isn't even the man.
Speaker 1
I saw this article too, by the way.
Speaker 3
Yeah. Well, and this is, we talked about it before about how, you know,
Speaker 2
the original cut of, of, of Amberson's has been lost to the ages. And so it's kind of this, this mythical thing. And I've said before, I'm
Speaker 3
like, it's a testament to how good what Orson Well is made is that even kind of this,
Speaker 2
this bold, lorized version of what, what, you know, what was released at the time is
Speaker 3
still pretty darn good. Yeah.
Speaker 1
It's funny. In my head, I was like, yeah, the reader's digest version somehow still ends up being yes revered. Exactly. Yeah.
Speaker 3
So this is an article at NPR. It says, a well super fan named Brian Rose, himself
Speaker 2
an accomplished filmmaker, has used animation and countless hours of painstaking research to recreate missing footage from the magnificent Amberson's.
Speaker 3
And it's this whole, I mean, it, it, it, the, the original cut that Orson Well is made,
Speaker 2
131 minutes, which is not that long, by the way.
Speaker 3
But RK, it was like, no, no, no, it's too long. So they cut it down to 88 minutes. And then they just, they
Speaker 2
just like flushed the, you know, the, the cut footage down the toilet or something. Yeah.
Speaker 1
Devastating.
Speaker 2
It's just gone, you
Speaker 1
know? Yeah. Yeah. Um, and, and
Speaker 3
so this right here, this is my release the Snyder cut, you know what
Speaker 8
I mean?
Speaker 1
You're right, right, right.
Speaker 3
I'm like, I want to see this. So it's fascinating. I think it's kind of,
Speaker 2
uh, this combination of, of CG and animation, all this other stuff, to try to approximate what, what was actually intended by Orson Welles.
Speaker 3
And I'm like, man, I want to find a way
Speaker 2
to see this. I
Speaker 3
love, I love the quote
Speaker 2
from, from the guy. He's like, uh, there's, there's, you know, the, it's unclear who owns the rights and, and whether this thing is even legal. He says, well,
Speaker 3
uh, the thought was to beg forgiveness later.
Speaker 2
Like just do it and then figure it out later. I, I'd love to see this.
Speaker 1
Yeah. I mean, I, to me, I've not seen the original. I want to watch the original first, but I think this is sort of like that Donnercut thing where you're like, look, this is an approximation, right? Like you can't say that this is exactly finally the version you always wanted to see, but like how cool that someone brought you as close as possible. Right.
Speaker 4
Exactly. Right.
Speaker 1
Yeah. Did you see the animated footage?
Speaker 2
I, I, I glanced at it. Yeah. Yeah.
Speaker 4
It's kind of cool.
Speaker 2
I'm, I'm again, I'm all
Speaker 3
about it. I'm all about,
Speaker 2
uh, uh, as many people seeing the magnus and amber sense as possible. That's, that's, that's not the comment.
Speaker 3
I would love to hear your thoughts on that. Yeah. Yeah. Yeah. Well, and I, I
Speaker 1
got a, I hate to give RKO this, but hearing that it's 88 minutes, I'm like, well, I can do that.
Speaker 3
Well, speaking of lost cuts, I mean, I thought this was interesting. You and I were texting about this earlier, how
Speaker 2
there's the, the, the original Joel Schumacher edit of forever, which Kevin
Speaker 3
Smith got his hands on and he's been screening at, at his, uh, Smod Castle Theater in, uh, in New
Speaker 2
Jersey.
Speaker 1
Fascinated by this, because this is one of those things where you hear that, yeah, there's a Schumacher cut and you're like, yeah, probably in a locker somewhere. We'll never see it, but then when, you know, it's, it's no, like, no, I have it. And, uh, I'm going to show it. Right. You know, then it becomes like, oh, well, can
Speaker 9
I see it?
Speaker 4
You know.
Speaker 3
And I mean, just from the description, it, it, it sounds like something because, you know, you and I, we, we talked through Batman forever a couple of years ago. And I'm, my sense, correct me if I'm wrong, we're both kind of
Speaker 2
like, no, we, we like it.
Speaker 1
You know,
Speaker 8
I
Speaker 2
don't mind it,
Speaker 3
you
Speaker 2
know, but there's definitely stuff in there that separates it from, from the next one, you know, Batman, Robin, which was more,
Speaker 4
it was
Speaker 3
just more.
Speaker 8
Yes.
Speaker 4
Yes.
Speaker 3
Whereas Batman forever, there, there's the DNA of the previous films is much more present.
Speaker 2
And so I, a little bit darker and sort of, uh, you know, letting Val Kilmer be more broody and whatnot in the context of a bit
Speaker 3
more of an arc. And I'm like, well,
Speaker 2
that sounds interesting to me. Like I, I don't, I
Speaker 3
don't imagine my opinion of the movie is going to change that drastically.
Speaker 4
No, but
Speaker 1
if there is a slightly different version of it, just to, to observe that as sort of like a curiosity, like I am curious. I would, I would happily watch that. I can't believe that we were saying this that Smith can even screen it. Like that feels weird to me that it's not being shut down, which I almost take to mean maybe Warner Brothers is like testing the waters a little bit. Like maybe we could make money off of this, you know, like let them show it once or twice. And if people say they want to see it, maybe we could, it could be content for our streaming service.
Speaker 3
Well, we'll see about that.
Speaker 1
Before we watch it quickly before they yank it. Before they pull it for tax reasons. Yeah. Yeah. Right.
Speaker 2
I agree with that. I feel like this might be closer to happening than not. You know, I keep a Goldsman who wrote, who wrote the movie has said that the cut that exists is basically done with the exception of one or two inserts.
Speaker 3
And I think they have like temp music from the Elfman movies. Right. For the Elfman scores.
Speaker 2
And yeah, I mean, I can't imagine that there's a ton of effects work or whatever that would need to be done because it sounds like most of the stuff they cut
Speaker 4
is the character moments. Right. Right. And I certainly am like, well, that's the stuff I'm interested in. Same.
Speaker 1
Same. Yeah. And I think,
Speaker 4
you know, we're also in a
Speaker 1
moment in time where people are really savvy with stuff, like filmmaking more than ever. And I think especially the audience for this type of thing
Speaker 4
would forgive,
Speaker 1
you know, stuff, you know, like cables in the background or whatever that they haven't cleaned up. Yeah.
Speaker 3
I love that the
Speaker 2
opportunity exists for stuff like this to potentially be released. You know what I mean? I mean, because of the multiple streams, literal streaming and just the ways in which they can monetize the stuff, I mean, like, why not make it make it accessible, you know? Yeah.
Speaker 1
Same.
Speaker 3
So that should be interesting. But and if
Speaker 2
there is news for that, I mean, I'm sure we'll talk about it in future episodes of something actually happening. Oh, definitely. Definitely.
Speaker 3
Yeah.
Brian Skrobonja breaks down the myths and the mechanics of Infinite Banking and how this strategy allows you to take control of your cash flow and finance larger purchases while still allowing your money to earn dividends and interest. Learn how Infinite Banking works, why you need to forget what you think you know about whole life insurance, and whether this strategy is right for you.
- In order to understand the concept of Infinite Banking, you have to set aside the common understanding of how life insurance works. You also have to realize that there are pros and cons with every financial strategy and there isn’t any silver bullet that everyone should adopt.
- Infinite Banking, also known as Privatized Banking, Cash Flow Banking, or Bank On Yourself, utilizes a specially designed whole life insurance contract. If you search for those terms you’re likely to find a huge number of articles on how the process works (or doesn’t work) because the strategy has been around for years.
- When you look at the course of someone’s life, you might be surprised at how much money is actually earned and spent. Capturing and maintaining control of this money as it comes in and goes out is the core of this strategy.
- Many of us use banks on a day-to-day basis. Aside from the recurring expenses that we all need to spend money on, there are also semi-frequent large transactions that you may want to save for.
- Big ticket items may require borrowing money from a bank, but no matter how you go about funding those purchases, the end result is a zero-sum game which requires a continuous need to earn money.
- In the example of purchasing a $30,000 automobile every five years, you save money each month and then write a check at the five-year mark, bringing your account to zero with the whole process starting off again.
- Using a specially designed life insurance contract can create long-term wealth from money that you would have otherwise spent. It requires using the life insurance contract that is very different from the traditional approach.
- Make sure you are working with a financial advisor that understands the concept.
- Many people dismiss whole life insurance as too expensive with rates of return that are too low, and in some ways that’s true. Term life is usually a better option for life insurance, but we are not talking about simply buying life insurance.
- The idea is using a whole life insurance contract as a cash alternative, not an investment alternative or life insurance solution.
- A specially designed whole life insurance contract has a specific feature to allow the policy owner access to money through non-recognition loans from the insurance company. This allows for your entire cash value to stay within the policy earning interest and dividends, and allows for uninterrupted growth.
- Compared to a savings account where you are withdrawing money and the interest earning balance declines each time, borrowing money against your policy allows that money to continue to earn interest and grow. There are ways to structure the contract that can also offset the cost of the loan.
- This kind of strategy is the best for business owners and habitual savers who don’t require every dollar they make.
- The loan on the contract comes with flexibility because it doesn’t come with the usual repayment schedule. From the insurance company’s perspective, the loan is covered by the collateral in the policy.
- You’re likely to want to repay the loan so that you have access to the money later. This strategy is all about cash flow and how the design creates a conduit to creating more money than simply paying cash or financing purchases through a bank.
- There are also tax considerations for life insurance. The earnings within a policy are tax-free, same with the money growing within the policy, the death benefit, and the loans.
- If you are a good saver, this strategy could work for you. Infinite Banking will lock up your money for up to five to seven years. The lack of liquidity covers the cost of the life insurance and to disregard that could be careless.
- Don’t beat yourself up about financial decisions you’ve made in the past. There is a lot of misinformation about financial topics out there.
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