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Bank on Yourself: Three Alternatives to Consider Instead of Taking a Loan on a Whole Life Policy



“The Bank on Yourself Revolution” is a book released in 2014. It was written by author Pam Yellen as a follow-up to her popular book released 5 years earlier simply called “Bank on Yourself.”

The new book has the same themes as the old one. She criticizes Wall Street and banks for their business practices while chastising them for stealing the wealth of the middle class. She slams “financial entertainers” for providing shoddy and generalized investment advice to the public and states this advice is over promising and under delivering. As solution, Yellen encourages her readers to seek the guidance of one of her specially trained “authorized advisor” in order to provide them with guidance on how to design a special type of financial tool that has the ability to allow a person to “spend their way to wealth.”

The concept the authorized advisor will show the reader who follows the advice revolves around a strategy that calls for an individual to store cash in a type of whole life cash value insurance policy created by a mutual life insurance company. The life insurance company who creates the policy will then give the policy owner the ability to take various loans against the equity they build up so that they can “spend their money” while the actual asset “continues to grow” faster than the interest charged against the loan.

The asset continues to grow because the insurance company will continue to pay dividends on the equity that has been borrowed against.

When someone can borrow against an asset at one rate but earn a higher rate of return than what the loan requires, there is the possibility of earning an arbitrage profit.

When a lender gives a loan against an asset with equity, the loan is known as a “collateralized loan” because the asset is held as collateral to pay the loan off if the event the borrower doesn’t pay it off in other ways.. If the owner and the asset/borrower can earn a better rate of return with their asset than the interest rate on that loan they take against it, then it could be argued that a person could spend their money but still be making money with it at the same time.

The uniqueness of a life insurance contract is that the money borrowed generally does not have to be paid back under a set schedule like most loans do from other lenders. Therefore, not paying the loan back “on time” won’t affect an individuals credit score or cause them to go bankrupt.

I am not an authorized representative of “Bank on Yourself” but understand the idea behind it. Since whole life has contractual minimum guaranteed rate of return, it will never lose money due to market losses. The type of whole life insurance policy she promotes is one that has what is known as a “non-direct participating dividend paying policy” that will allow the policy owner to receive a share of the life insurance company’s surplus earnings even against money that has been loaned against.

I think cash value life insurance in general is a financial product that more people should own to receive many of the rich features they offer that no other financial product has. However, I don’t believe that relying 100% on this product is a viable solution to finance every purchase a person will ever make again. After all, it is a loan and there is an interest expense charged against it. If money is available from other sources that is cheaper than borrowing from a life insurance policy, then these other sources should be considered. This way, money placed in a life insurance policy can continue to grow at a higher rate than the cost of acquiring the money from another source. Who cares if anyone or any company makes a profit off of a financial service that brings more value to them? You shouldn’t care if you want to accumulate wealth.

Where are other sources of capital that can provide an individual a lower their cost of financing than taking a loan against a life insurance policy? Here are three that I would consider:

1) A non collateralized loan from a bank or credit card company – When a person has good credit, there are a lot of banks and credit card companies that will be happy to give a person a loan so they can do anything they want to with. The interest rate on these loans can be extremely low. I have seen some that are less than 1%. It is OK to use these loans to make a purchase. When a lender makes a loan to a person in this way, they take the risk. The individual who owns the cash value life insurance policy can still have their money available for anything that may come up while it continues to grow at a higher rate than the interest being charged.

2) A collateralized loan against an investment portfolio – One of the best parts of a cash value life insurance policy is that it is contractually guaranteed not to go down in value. That isn’t the case for stocks, bonds and real estate investment trusts held in a brokerage account. These assets when held in non-retirement accounts can also be loaned against. This way, an individual can keep their investments invested and spend the equity they hold accomplishing the same “spend and grow wealthy” objective of “Bank on Yourself.” Loans against investment assets can be done in a margin account. As long as the investments stay above the margin account minimum, these loans do not need to be paid back just like a loan on a life insurance policy.

3) A home equity loan – For the people who have home equity, there is the possibility of that they can take a home equity loan. Home equity loans are also a type of collateralized loan. Unlike margin accounts or loans against a whole life insurance policy, home equity loans do require at least the interest payments to be made. Home equity loans may work better than life insurance loans because it uses an asset that typically isn’t liquid. When a borrower has the opportunity to turn a non liquid asset into cash without selling it while maintaining full control of a liquid asset like cash value life insurance, then the risk to the borrower is less than using the liquid asset as collateral. The reason being is that if anything were to happen in the future where banks would not lend money (like what happened in 2008-2009), the borrower would have more flexibility in their financial lives to handle change.

“Bank on Yourself” whole life insurance is a great asset to own but it isn’t always the best alternative to find the cheapest money to make purchases and “earn your way to wealth.” If an individual can borrow at a cheaper rate than the rate the insurance company will charge against the policy, it will allow the individual to accumulate wealth faster.

There are other considerations with “Bank on Yourself” whole life policies that need to be addressed as well.

This article is not intended to provide any specific advice. Specific recommendations will vary from person to person. Working with a financial planner can help you to determine which course is right for you.


Famous Futuristic George Gilder Weighs BSV Over BTC at Summit



Bitcoin (BTC) Prices Hold Steady After a Severe Turmoil
  • The Summit is held annually to help investors discover new market trends.
  • Gilder highlighted the advantages of BSV over BTC to the current issues.

As per renowned futuristic George Gilder, a “dynamic Bitcoin” that has “really created a miracle in recent months,” BSV is on the verge of becoming the de facto standard for all global currency in the next five to ten years. The Famous futurist gave an online “Six Predictions Summit” presentation to a group of financial experts, highlighting the advantages of BSV over BTC as the answer to the current economic and technical issues.

Framework for New World Order Required

According to Gilder, “immutable, unhackable” Bitcoin and the blockchain have produced freedom from political control currency. “Dual hacking crises” (technology hacking and economic hacking) affect today’s globe. Still, they may be addressed by establishing a new global economy and laying a framework for new world order.

The Six Predictions Summit is held annually to help investors discover new market trends. Due to current travel and other constraints, this year’s event was hosted online instead of in person. Renowned investing trend spotters Jim Rickards, James Altucher, Ray Blanco, Zach Scheidt, and Alan Knuckman joined hosts Doug Hill and Matt Insley on the show.

George Gilder has referenced Bitcoin’s “digital gold” myth at several points. Aside from noting that “the original Bitcoin, BTC” and Bitcoin Satoshi’s Vision or BSV are distinct, he reaffirmed gold’s usefulness as a long-term store of wealth.

Gilder said:

“Bitcoin Satoshi Vision has really created a miracle in recent months, rather than the static Bitcoin, which people hold on for dear life. It’s a dynamic Bitcoin that moves with the advance of technology.”

Despite the fact he called BTC “Bitcoin”, “the original Bitcoin” was not the answer he was talking about. The asset was regarded by him as being of no use to anybody except speculators, terming it as static.

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Is the Future of Real Estate in the Metaverse?



Is the Future of Real Estate in the Metaverse?

Although the metaverse is not a new concept, it has recently gained much more attention. Many are now becoming familiar with the idea, and are looking into what its future offers and how they can be a part of it. The metaverse will completely transform the current way of life for the average individual, affecting work, trade, entertainment, leisure, exercise, social interactions, and everything in between.

Apart from the retail players, big tech companies are also getting into the space. Facebook, the world’s most popular social media platform as of 2021, has recently rebranded to “Meta”, showing its commitment to this new space. According to an official announcement, rebranding was necessary because the company is shifting its focus to bring the metaverse to life. Footwear and apparel giant Nike is also preparing for the metaverse and has signified interest in creating its own space, as well as Adidas, another powerhouse brand.

The metaverse will transform many aspects of life by improving interpersonal interactions, establishing communities, and helping businesses grow. The climate required to create and operate a successful business will also change considerably. Firstly, the metaverse will allow businesses, regardless of size, to establish digital stores for their goods and services. A significant advantage of these capabilities for the average company is that opening a physical store is no longer necessary. This could significantly reduce overhead costs without having to sacrifice customer reach. In a virtual world, a company can tap into wider audiences beyond the physical boundaries imposed in a real-life setting.

There are also multiple metaverse use cases for the entertainment sector. For example, entertainment brands could use metaverse locations to preview music to excite virtual fans, holding mega concerts to listeners around the world. Furthermore, fans may also get the chance to meet and interact with their favorite celebrities, an opportunity rarely possible in the real world.

Additionally, people can gather for leisure activities in virtual parks to play or bond over shared interests and ideas. These locations could replicate attractions available in the real world, engaging all different types of users in the process. For instance, people can build teams based on varying activities, including everything from traveling, virtual combat, or playing chess. The metaverse will offer a slew of new opportunities for individuals and brands alike.

One of the less obvious but very promising advantages of the metaverse is the opportunity to capitalize on virtual real estate. Regardless of sector or industry, the shift to the metaverse still requires individuals and businesses to establish a presence on the metaverse; this is where virtual real estate comes in and plays its part.

All metaverse offerings, including commerce, healthcare, entertainment, and other sectors, must set up shop somewhere in the metaverse to reach their desired base. Individuals can also invest in virtual properties for various reasons, In parallel to the traditional real estate market, Investors can earn profit by purchasing properties and leasing them to businesses and other franchises. Investors can also simply buy virtual properties, hold them into the future, and later flip them for a potential profit. With 500 million dollars sold just in real estate in the metaverse, last year projections state that it will double this year!

The key to making the best out of a real estate investment is getting in early. As with everything else, early buyers catch on quicker and are in a better position to make a profit if and when the value increases. Investors are able to pick their property at floor price in a strategic approach that will allow the potential for a larger profit as well as an easier sale just as investors do in the traditional real estate setting. Users looking to get into digital real estate in the metaverse can start their virtual portfolio and begin with Ethereum Towers.

Ethereum Towers

Ethereum Towers is a community-centric vertical megastructure set in the Ethereum Worlds metaverse. Consisting of 4,388 separate apartments, Ethereum Worlds is a major player in the space available to investors interested in taking an early chunk of the metaverse real estate market as it grows. The apartments in the structure are in two identical towers, each with 101 stories. Each apartment is an NFT on the Ethereum network and is available as an ERC-721 token.

All owners in the Ethereum Towers can use their apartments however they please. Each owner can personalize their space how they wish, giving them full autonomy over their digital real estate asset. For this, the Ethereum Towers offers a marketplace with a wide range of accessories, furnishings, and ornaments that owners can purchase and set as preferred. Since each apartment is available on the Ethereum blockchain as an NFT, ownership is guaranteed and easily verifiable.

Due to the deliberate design, Ethereum Towers apartment owners and guests can explore the social benefits of a large community with similar interests. All residents partake in a virtual social experience supported by meaningful interpersonal interactions. Each tower possesses communal areas where owners can meet and interact, regardless of any preconceived boundaries that would limit interaction in the physical world. Through these interactions, users can build a strong sense of belonging and establish friendships along the way.

Perhaps the most significant advantage to Ethereum Towers is the investment opportunity it offers. In the metaverse, unlike in the real world, digital property assets usually have a much lower entry barrier, making it much easier for interested investors to get involved before the masses. The value of the apartments are projected to increase over time as meta living becomes more popular, providing early adopters a chance to capitalize on being first movers.

Getting In Early

Investors that have been able to identify ideas that dramatically impact the functionality of the future have always prospered. Those who understand the impact and utility around the metaverse too will have a major headstart within the benefits that this realm will offer. With Facebook being one of the largest and most successful companies taking action to rebrand itself as “Meta,” this should give investors a clear idea that a new significant era is on the horizon.


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Popular Analyst Predicts Major Breakout for Ethereum (ETH) on the Cards



Ethereum To Reach $20 Trillion by 2030 as per Ark Invest CEO Cathie Wood
  • Ethereum’s price has rebounded from a two-month decline in the last week.
  • Partisans are bullish on ETH 2.0 and are targeting a price of $8,000 shortly.

Since its January lows, the price of Ethereum has risen almost 50%. The Ethereum blockchains native token, Ether, has recently shown indications of resurgence. The altcoin is benefiting from several fundamental factors.

ETH/USDT: Source: TradingVIew

Ethereum’s price has rebounded from a two-month decline in the last week and has already reached the $3,000 mark. Cryptocurrency analyst Benjamin Cowen predicted a significant breakout for Ethereum (ETH) this week. According to him, the ETH price range between $2,000 and $4,000 represents a major re-accumulation zone for a medium-term runway of higher prices.

Upcoming ETH 2.0 Crucial

It’s also predicted that the network’s different offerings would show greener candles. Additionally, Partisans are bullish on ETH 2.0 and are targeting a price of $8,000 shortly. As the price of ETH continues to rise steadily, the fear and greed index for Ethereum weighs more heavily on the greed side of things.

Every obstacle on its path to the $3,200 mark on the daily chart has been overcome by Ethereum. Bulls are fully expecting the next price drop to be taken out by them. Aiming for the $3,600 level, investors have successfully crossed the 50 SMA and the bearish sloping line.

More than 45 percent of Ethereum’s value has been wiped off since its all-time high on November 10. Since its November high, Bitcoin, the world’s most valuable digital currency, has fallen by more than half. However, prices reversed their downward trend in February.

However, if pricing fails to hold above $2,800 in the next few trading days, we might witness a further decline below $2,400. According to CoinMarketCap, the Ethereum price today is $3,195.23 USD with a 24-hour trading volume of $13,485,593,739 USD. Ethereum has been up 3.84% in the last 24 hours.

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