Join financial planner Alex Savage, a CPA and CFP with a rich background in insurance, as he unravels the truth behind infinite banking. He dives into what whole life insurance truly entails, dispelling myths about policy loans and their costs. Alex explains how infinite banking stacks up against traditional investments like real estate and ETFs. He emphasizes the importance of consulting unbiased financial advice tailored to personal goals, ensuring that listeners make informed decisions about their financial strategies.
46:35
forum Ask episode
web_stories AI Snips
view_agenda Chapters
auto_awesome Transcript
info_circle Episode notes
insights INSIGHT
Basics of Infinite Banking
Whole life insurance builds cash value over time that can be borrowed against via policy loans.
Infinite banking uses this cash value borrowing to self-finance investments instead of going to a bank.
insights INSIGHT
Policy Loans Aren't Free Money
Policy loans charge interest typically around 6.2% compounding, paid back to the insurer.
The cash value is collateral, but loans reduce the death benefit and risk policy lapse if unpaid.
insights INSIGHT
High Costs and Slow Break-Even
Whole life insurance policies have high upfront commissions and fees, causing slow break-even periods.
It often takes 3-5 years or more before meaningful loans can be taken from cash value.
Get the Snipd Podcast app to discover more snips from this episode
Before you commit to a whole life insurance policy, you need to understand what it really is and what it isn’t. This week on the Tax Smart REI Podcast, we sit down with financial planner Alex Savage, CPA and CFP, to break down the infinite banking concept and whether it truly makes sense for real estate investors and high-income earners.
You'll learn:
- What whole life insurance and infinite banking actually are (beyond the sales pitch)
- Why policy loans aren't “free money” and how they really work
- What hidden costs, commissions, and risks most people overlook
- How this strategy compares to simply investing in real estate or ETFs
- Who this approach might actually work for and who should avoid it
If you've been pitched on infinite banking or are wondering whether to use life insurance as an investment vehicle, this episode gives you the full picture so you can make an informed decision.
To become a client, request a consultation from Hall CPA, PLLC at go.therealestatecpa.com/3KSEev6
Subscribe to REI Daily & Enter to Win a FREE Strategy Call:
go.therealestatecpa.com/41JuQBX
The Tax Smart Real Estate Investors podcast is for general information purposes only and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. Information on the podcast may not constitute the most up-to-date legal or other information. No reader, user, or listener of this podcast should act or refrain from acting on the basis of information on this podcast without first seeking legal and tax advice from counsel in the relevant jurisdiction. Only your individual attorney and tax advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this podcast or any of the links or resources contained or mentioned within the podcast show and show notes do not create a relationship between the reader, user, or listener and podcast hosts, contributors, or guests.
Tax Smart Real Estate Investors Podcast 