Author Topic: "Infinite Banking" Sample Numbers to Run Analysis  (Read 359 times)

BiCu

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"Infinite Banking" Sample Numbers to Run Analysis
« on: June 05, 2019, 03:04:25 AM »
Loose acquaintances keep trying to bullshit me about Infinite Banking.

Does anyone have access to any actual decent numbers so that I can run an analysis/case study and actually show that it does not make sense? Or does anyone know of any math-based analyses that are already available?

I am not interested in blanket responses that just tell me to avoid it or in reading analyses about theory; I am a numbers person and want to be able to think this through for myself with the facts.

acepedro45

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Re: "Infinite Banking" Sample Numbers to Run Analysis
« Reply #1 on: June 05, 2019, 08:18:09 AM »
https://www.whitecoatinvestor.com/a-twist-on-whole-life-insurance/

It's not exactly what you're looking for but the comments have a few numerical examples. Downside: you have to wade through the comments.

ketchup

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Re: "Infinite Banking" Sample Numbers to Run Analysis
« Reply #2 on: June 05, 2019, 09:29:55 AM »
It feels kind of dumb.

Even if you're borrowing money from "yourself" at say 5% and paying that interest to yourself ("free loan"), it's like a 401k loan.  The real cost is the opportunity cost of your money being out of the market.  Most reasonable loans (while keeping your money invested) would be a better option than not investing.