Robert Kiyosaki LOVES Whole Life Insurance: The Secret Tool of the Wealthy

Hey, I’m Chris Kirkpatrick, “The Safe-Bet
Money Guy”, teaching secrets of the wealthy to the movers & shakers of the world so they
can avoid the Stock Market Casino and Gamble-Proof Their Lives(tm). For this video, I want to talk about Robert
Kiyosaki, and how exciting it is that he has come out and endorsed Cash Value Life Insurance!! Now, you may not see the excitement – you
may not understand why it’s so exciting yet (grins), but I promise you will! If you don’t know who Robert Kiyosaki is,
he is an International Bestselling Author, he’s a real estate investor, he’s a business
coach, and he’s personally mentored thousands of people to financial freedom throughout
the world. Kiyosaki has made a huge impact in my life
personally – I’ve spent a little time with him, I’ve read his books, and his book Rich
Dad Poor Dad made a profound impact at the beginning of my business career. One of the things that Robert (Kiyosaki) teaches
is that if you want to be wealthy, you need to learn to think and act like the wealthy. Now I know if you’re into self-development,
if you’re pushing yourself, if you’re an entrepreneur, you understand…you’ve heard that a thousand
times…the question is… HOW?! So what I want to do with you right now is
unpack FOUR of the THINGS I’VE LEARNED in talking with, studying and researching some
of the most successful people throughout history, and in current economic times! #1: LEARN TO CREATE WEALTH, NOT EARN IT
The first thing I want to share with you actually came from Robert Kiyosaki himself, and he
simply said, if you want to create wealth, if you want to be wealthy I should say, YOU
NEED TO LEARN how to CREATE WEALTH – NOT just go to work, punch a time clock, collect a
paycheck, and get benefits. Because the scary truth is that 92% of Americans
right now who are following that system cannot maintain their standard of living when they
retire! So I’m going to ask you a question: when you
retire, do you want to take a step backwards? Do you want to reduce your standard of living? Do you want to have to downsize your house?
Do you want to not be able to take as many trips, not be able to travel across the country
to see your grandkids…any of that? If the answer is “Yeah”, well then you can
keep on doing what you’re doing. If the answer is, “NO, I want more than that!”
then you really need to think about the results that most of the people who are following
contemporary financial strategies are getting. Wealthy people understand this, and that’s
why they don’t do it that way. #2: ONLY INVEST IN WHAT YOU KNOW
The second thing that I’ve learned was something that I actually learned from Warren Buffet,
i think was the first time I heard it. He (Warren Buffet) said “You should never
invest in anything you don’t understand”. Actually more importantly, he said you should
ONLY invest in things that you KNOW! I’m going to ask you a question right now:
How much do you understand about your 401k? How much do you understand about the mutual
funds that your money is sitting in? How much do you understand about PE Ratios
for the stocks that you have?….any of that stuff? If that answer is “not much”, I’m going challenge
you right now, that the next time we have a financial correction and you LOSE half the
value in your account…. it’s YOUR FAULT – NOT your financial advisor’s! I’ll tell you right now- wealthy people understand
that. That’s why they keep their money SAFE, they
keep it protected, safeguarded, and then they ONLY put their money into things they UNDERSTAND,
and when the time is right for THEM. #3: The Third thing I’ve learned is that you
never want to tie up your money unnecessarily. And this goes back to another problem, with
the retirement planning institution of this country and the system that everybody’s operating
inside of. And it goes to the point that, you know what…How
much sense does it make to put your money in an account that you don’t have access to
for the next 30 years, when you may need access to that money for either a Rainy Day or an
Opportunity in a couple years?! It doesn’t make much sense at ALL! But that’s what people are doing! Over 80%
off the money being saved for retirement right now is going into these retirement accounts
that are considered “Qualified Accounts”, meaning you can’t touch that money until you’re
59.5 without paying penalty and taxes on it! Now, taxes: You’re gonna have to pay taxes
on that money no matter what, but the reality is, taxes are going up, right?! At least I
think they are – there’s certainly not much room to go down. There’s a lot that goes into
that, but the third thing I’ve learned is to Never Tie Up Your Money Unnecessarily. Wealthy people understand that, so they don’t
put their money in accounts that they can’t touch for 30 years, when they may need that
money for either emergency or opportunity for business, for real estate investment property,
for whatever, for any kind of opportunity that comes their way, when they might need
IT MAY BE PROPERLY STRUCTURED WHOLE LIFE INSURANCE! The fourth thing I’ve learned, and this is
the overriding principle: Wealthy people understand that Money is Simply
a TOOL. They don’t become a slave to their money, money is a slave to them. Money is
a tool for them. Now, all the things I’ve said about 401k’s,
stocks…. mutual funds, bonds, all that stuff – whatever- they’re JUST TOOLS! All financial products are simply TOOLS, and
you need to start viewing financial products as tools. Not all tools are bad – you just
need to make sure you have the right tool for the job. How much sense does it make to bring a saw
when you need a hammer? Or to bring a drill when you need a saw? (smiles) Right?! It doesn’t make any sense at all.
You just need to make sure you have the RIGHT TOOL for the JOB, for your situation. The reality is, Robert Kiyosaki understands
that. The most successful, the wealthiest people
Insurance Contract – more specifically, a properly structured WHOLE LIFE INSURANCE Contract,
is the ONLY TOOL that will GUARANTEE: -what you want to happen,
– will happen, – When you want it to happen,
– whether you’re here to see it happen, – or not. Now that sounds like a bold statement I know,
but the reality is, it’s true. It’s absolutely true, and there’s a reason
that these people are using this (properly structured whole life insurance contracts). And…there’s a reason why YOU DON’T KNOW
ABOUT IT. That reason is, you know what, people in the
financial industry either A) Don’t know about it, or B) Don’t want YOU to know about it Because if you did (know about them), all
your money wouldn’t be going into all these other funds, and…. they wouldn’t be able
to make their annual commissions on your money being under their management. The wealthy understand this. The wealthy understand how to LEVERAGE their
money. So what I want to do right now is walk you
through and example of EXACTLY what I’m talking about. I’m going to show you an example RIGHT NOW
of how a 40-Year old can take and leverage $100,000 that he’s got sitting in a money
market account at a bank, earning 1/10% interest – literally losing purchasing power every
year, because remember, if inflation is going up by more than you’re earning, you’re losing
money, because that money will buy less and less and less for you on an annual basis. So right now, let’s go through a 40 year old
who has $100,000, and look at: WHAT ARE HIS OPTIONS TO DO WITH THAT MONEY? He can keep the money in that bank account
and Go Broke Slowly…..that is an option. OR, he can invest it and take risk – risk
losing a high percentage of it, and risk losing Access to that money. OR, he can take it and put it into a Properly
Structured Whole Life Insurance Contract. What are the benefits he gets for that?
Well, – If he takes $100k, after 2 years, he’s gonna
have Access to 94% of that money! Actually, in Year 1, when he puts the first
deposit of $50k in, because we’re going to put that $100k into his account/contract in
2 payments/deposits, he’ll have access to 90% after 30 days of putting the first $50k
in! He’ll have Liquidity of $45k, and then after
the 2nd year, he’ll have access to $94k, so literally over a 2 year period, he only gives
up 6% Liquidity (smiles)!! Yet, watch all the benefits he gets (and the
wealthy people of this world understand this): – He gets a $1.25Million DEATH BENEFIT, meaning
– we all have people – families, business partners – in our lives that we’re doing this
for, right? – We want to leave the world better than when
we found it. I’m telling you right now, if something happens to you – tomorrow, the next
day, whenever, if you’re a business owner or partner, you’re exposed , and your family
are going to be hurting, right, unless you have a great succession plan with your business. This is the only way to guarantee that if
something happens to you tomorrow, they’re protected. INSTANT WEALTH – created overnight. (clicks
fingers) – On the flip side, if you live a long time,
you still have access to the money to use for the business, to use as leverage to go
where you want to go. – On top of that, you get a 4% GUARANTEED
Rate of Return on the money you have left in the contract. 4 PERCENT!!! That’s 40 TIMES
If anything happens to you, disability coverage is simply Cash Flow Insurance. That’s it. Meaning, if anything happens to you and you
can’t perform 2 of 6 activities of daily living, you will make sure that a majority of your
income – a majority of the cash flow you have coming in right now – is covered, so you can: * keep your Dignity,
* you can keep your Lifestyle, and * you can move forward, and
* you’ll never put unnecessary stress on your family to take care of you. – We’re all gonna get older. (laughs) The
reality is, 70% of people are going to need some sort of assisted living – assisted care
– as we enter our aging, elderly years. LONG TERM CARE. What you can do with this (properly structured
whole life insurance) contract is you can use some of the money in there if you get
to that point in time and you haven’t had any catastrophe happen up to that point. You’ll
have access to this money to protect you in that environment. I’m telling you right now, these are MASSIVE,
MASSIVE benefits that most people in the world DON’T understand how to use and how to leverage….but
the wealthy people do. Reality is, this is how wealthy people think. They understand how to take money and use
it as a tool, leverage it up and get where they want to go. They know how to keep Liquidity, Use, and
Control of that money so they can have access to it in case of opportunity for their life.
So they can have access to it in case they have an emergency in their life. So they’re not going to have pay penalty or
taxes just to access their OWN money!! This money will grow on a tax-deferred basis
and they can have access to this money TAX-FREE! There’s no better tool on the face of the
earth that will do this for you. Rich people understand it – as Robert Kiyosaki
says, “That’s the Rich Dad Way.” This is something that every single entrepreneur
in the world, every single person that wants to GUARANTEE that you can set a SYSTEM up
where you can IMPROVE the status of – your life,
– your family’s life, – your business’ life, and present yourself with: – more SECURITY in your life
– more GUARANTEES in your money – more OPPORTUNITY as it presents itself as
you go through your working career and entrepreneurial ventures (adventure, I’ll call it) , and it
puts you in a situation so you’ll have – more CONTROL over decisions, so you’ll never
beholden to anyone telling you what you can or can’t do in your life. So, like I said, just to recap, you’re gonna
have more security, more guarantees, more opportunity, and more control with your money. Isn’t THAT what you’re looking for? I’m telling you, a properly structured whole
life insurance contract is the ONLY way to get there. I don’t care what anyone tells you… those
are the facts. The math backs it up. Anybody who wants to tell you otherwise is
crazy. I hope this information was helpful.There
has never been a time more important than right now with what’s coming down the pipeline
to gain hold, gain control, grab a foothold of your financial position. Make sure you are structured properly….because
in the next financial downturn, you’ll either be really STRESSED, OR you’re going to be
able to THRIVE and create a LOT of opportunity and a LOT of wealth for you and your family
and your business. So I encourage you, take the steps. Subscribe
to all of my social media outlets, our YouTube page, follow us on Facebook, follow me on
Periscope, and I look forward to seeing you guys there! I hope to be able to connect with you on a
personal basis. Please reach out if you have any questions. Until next time, Live abundantly, live efficiently, live LIFE180. ~ Chris Kirkpatrick “The Safe-Bet Money Guy”
Founder/CEO LIFE180 Financial Group: Leading Into Financial Excellence
Former Top100 International Poker Player Leading Financial Security Expert, Speaker,
Coach – Subscribe to me!
periscope: @Chris_Kirkpatrick


I was a guest speaker at a Rich Dad Poor Dad event. During an intermission, a few of us were chatting with Robert. At this event, they had "breakout sessions", where financial services vendors try to peddle their services. Someone asked Robert what the criteria was for these vendors to come peddle their services. I kid you not, Robert without saying a word basically used sign language… That gesture of rubbing your thumb against your fingers (money). Basically, anybody who pays gets to peddle their service.

Interestingly enough, one such financial service being offered was something called index universal life insurance – basically a variation of whole life insurance. Robert basically said that it is not his responsibility to manage the decisions of the masses… That they do their thinking for themselves. So, on that note, please take Robert's advice and think about why he would endorse whole life insurance. Is it in your best interest, or His?

If you have the money, Whole Life insurance with one of the strong mutually owned companies is a great way to diversify your portfolio by adding another conservative asset to it! Nothing wrong with including it as one of many assets you put money in. Me personally, I like the idea of having investments that are both in the stock market and not in the stock market. I think of it as a natural hedge versus market volatility, if you do it right it can't hurt you.

Buying term and investing the difference is statistically far superior to IUL, UL and WL. Term is superior because:
1) Premium cost is 10 to 20 times higher for IUL, UL, and WL

2) Commissions – Simple math. 10% commissions on $30 per month is much less than 10% of $450 per month. Not to mention that agents can often get 90% of the first years premium.

3) The “estimates” on cash value projections are seldom actually reach. They are not realistic.

4) Investing through an IRA or 401K provides a far far superior return on average than WL, UL, or IUL policy. The commissions on an IRA or typical 401K is usually less than 1% TOTAL (commission and fees) as long as you choose a no-load mutual fund. However, WL, UL and UIL have annual maintenance fees, commissions, and other charges. In additions, your IRA or 401K investments are PRE TAXED dollars, versus taxed dollars which another huge advantage.

5) Flexibility – WL, UL, and IUL have very high premiums? What happens if you can’t make payments due to illness, injury, or whatever? After a period of time, you will have to pay surrender charges and part of YOUR MONEY will not be paid to you for breaking the policy. With Term insurance, simply just stop paying the insurance or investment account. Your investment money is still your investment money. But Term Insurance is so cheap, you likely will be able to keep paying for it if you want to.

6) The ACiD TEST – Simply ask any friend and family member to let you know the cash value of their IUL, WL, or UL policy. You will need to know their monthly premium as well. Then simply calculate how much money your family or friend should have had if they bought Term Insurance and invested the difference in a NO LOAD IRA SP500 fund every month. Historical SP500 returns are about 9% on average. You will have to do a little bit of estimating on how much their premium would have been X years ago. Also factor in that your invested amount are PRE-TAXED dollars, assuming you use an IRA or 401K plan for your investments. All in all, you will likely find that buying term and investing the difference will yield you more than double the cash value over the other policies at the end of the terms. Furthermore, statistics show that 80% of those policies are terminated before the end of their term, making is a very poor investment for the average person. Buy Term and invest the difference.

A lot of comments on here are missing the point. The loan provision is why this is so great. Where else can you get money from a tax-advantaged account under the age of 59.5, utilize it (leverage it) and your compounding is uninterrupted? Name one…..

I'll save you the research…….

This would be the only place, my friends.

The real reason why Robert Kiyosaki loves Whole Life is not for the policy holder who bought this "investment" But for the sales people who sell whole life- they become wealthy (the sales person) by receiving 50% commission on a sale of whole life. As long as that policy is active they (salesperson) receive residual income month after month. Residual income is the key to success. Whole life is the tool for the salesperson to use to become wealthy and that's what Kiyosaki loves residual income!

I like how he talks about 100k in a savings account that doesn't grow who's going to let 100k sit in a savings account..
and lets not forget the average person dose not have 100k at 4 years old

Warren Buffet says "don't invest in anything you don't understand". How about the fee's and commissions that change every year on a whole life insurance policy. If it were so good why can't they just be transparent about the hole thing.

Hey Chris! I am a new life insurance agent and love the material you are sharing! Just out of curiosity are you a life insurance trainer or recruiter!? Would love to work with someone knowledgeable like you. email is [email protected]

Wealthy people are self insured therefore don't need insurance yet alone WHOLE LIFE, wealthy people also know the 3 hidden rules on cash value policies:
1) cash value from the 1st-4th year= 0
2) after the 4th year the cash value can be used as a loan with 6-8% interest (why would you borrow your own $)
3) insured dies, company keeps cash value and pay off only the death benefit, if they don't find an excuse why not to pay it.

Cash value is the largest and oldest legal scam. Term is cheaper and more coverage which is what we need temporarily while we save up for retirement once we have saved the amount we need to retire comfortably insurance is no longer needed we become self insured like the wealthy! Check out Dave Ramsey his an expert at exposing these scam artists that love to take advantage of the misinformed!!

I have a product that is a hybrid of whole life, variable life, and universal life.  You can access the death benefit, cash value and living benefit too!!! beats any qualified plan like 401k!!!

1) The Government is not your friend. You have to report your 401k
contributions on your taxes annually. Your 401k plan is tax deferred.
When you retire taxes will be due at much higher rate and your tax bracket
will be even higher at retirement. This will cause a major tax problem for
you when funds are needed the most, for retirement. Due to the fact that
you are in a Gov’t sponsored plan and the Gov’t is aware of your saving, they
will consider your 401k to be income and you will receive reduced social security
benefits for life. The govt get you from both ways. Strike One.

2) Your 401k guy is not your friend. Most 401k guys know 98% of employees
never check past fund history when choosing funds in the plan. So many fund choices
are low performance/high commission funds. Also, the higher your plan balance the
more you pay in high fees and commissions. These fees are killing your retirement
savings. Many fees are undisclosed due to this reason. Indexing your savings in the
S&P eliminates all these problems. Strike Two. 

3) Your money is not protected from stock market losses.  Your in a retirement saving
plan that is not protected from market crashes. A long term employee will incur 3-4
market crashes in his employment career. It’s not if, but when, you will lose a good
chunk of your retirement savings again. Then it’s recouping time. Wasted years on having
to get back to even. What if you had a retirement plan that guarantees no losses,
only gains in the stock market. Strike Three.In conclusion: How can anyone expect to
be secure heading into retirement with these three strikes against them. We all hope
there’s a better way to save for our retirement years without having the fear of unprotected
losses, running out of money, premature death, high taxes.We all have insurance for our homes,
cars, health, life and more. Why aren’t we protecting and ensuring our retirement savings from
Market losses, Gov’t taxes, and greedy 401k guys? It’s our life’s savings. Shouldn’t it be insured too?? Isn’t
it better to know that your retirement savings are also insured? To know you will
never run out of your retirement savings. It’s all guaranteed income for life. Your
own private pension plan. Sleep good, be stress-free with good health. You have
no more financial worries.The 401K is a 20th Century retirement plan with a 21st Century audience.We ensure and protect our home, cars, health, life and more.   Why aren’t we protecting and ensuring our future retirement savings from high deferred tax, major market losses, high commission fees?We upgrade our cell phones every two years.  How many times have we even looked at a better and upgraded retirement plan?  Your family is the ones losing out if you don’t take action.Complete the form below so we can send you more valuable information on this new retirement plan that is replacing the 401K.  It’s time to retire your 401K and stop paying taxes at retirement.IT’S TIME TO RETHINK RETIREMENT

email me [email protected]

What company are you using in your example where you get 1.25 million in whole life for 100,000 in single premium Insurance at age 40?

I call bs on Kiyo. I asked this very question about participating whole life through his podcast. He said it was a poor persons mentality. His advisors on the show didn't even know what it was. They said what I meant was variable universal life. Now he likes it?! Eff him

Life Insurance is all about numbers and contracts.

Most people can understand more about 401Ks than whole life insurance.

How Much Money Are You Losing if you have a "WHOLE LIFE OR UNIVERSAL LIFE POLICY”

STEP-1 Calculate how much do you pay TOTAL PER YEAR: (Monthly Payment x 12)

STEP-2 Calculate how much you have Paid until now: (Total per Year x Number of Years)

STEP-3 Call your Life Insurance Co. Customer Service Line listed on your policy (not the Agent/Agency) and ASK: “How much Money do I have available to withdraw RIGHT NOW to use for my Retirement or in case I have an emergency?”

STEP-4 Compare what you have PAID with what you have AVAILABLE.
You may find out that you have much LESS than you have paid and how much have you lost so far.


-Where Did My Money Go ?

-Out of each payment, how much goes to the Insurance cost and how much goes to the Savings part ?

-Does the Cost of Insurance increase every year ?

-If I access my money do I have to pay any interest?

-How much is the Interest ?

-Why do I have to Borrow and Pay Interest on my own money ?

-If I access my money, does my Death Benefit go down ?

-If I pass away, would my family receive both: the Savings and the Death benefit ?

-My Agent told me that after 10 years I dont have to pay anymore. How does that actually work, where would the money come from to pay for the policy ?


How many families do you know that just has $100,000 sitting around?? If they did, why not just put it into an annuity or fixed money market account that gets a higher rate of return than 4%??

insurance companies only pay out about 3% of term insurance. most term insurance policies expire when you need insurance.

There has never been anything easier than convincing fools that the cheapest is the best. This guy could look a lot more intelligent and trustworthy, but he could not be more correct. Maybe 90% of these cash value products are not good, but if you dismiss the other 10% you are missing a potentially great vehicle for yourself and your progeny.

Watching this video never gets old. The more I watch it the more I learn and understand the benefits of having a whole life policy

The thing i dont get about loosing to inflation is what about the money your putting into the account each month? Doesn't that help you beat inflation you usually put in way more than the interest you get.

This guy has gotta be a life insurance saleman, because he is only telling half truth, at best.
You "can have access to it"….what he means to say is you " have to BORROW, your own money."
Then pay it back, to them, with interest.
And if you die, they keep the cash!

What’s the benefit in getting railed in commissions and fees and insurance you might not need though? Like why would you want to invest your money in such a way you lose half up front and can only access 70% of what’s left?

This is the worst advice I have ever heard how are you giving this type of advice if you really care about your money never invest in a whole life insurance

For those that believe Dave Ramsey is against whole life, that's not entirely true. He and every other term insurance proponent agree that Indexed Universal Life can be a suitable tool, but only for the super, super wealthy–those who have already maxed out every other tax-advantage savings plan and have a lot of cash just sitting around. For the majority of Americans, whole life is not a suitable product.

I was sold a whole life insurance policy for 100k death benefit. It runs out at age 70 but I get all the premium back. yay 23k. If I die the cash value stays with the insurance co.Then I learned I could have bought regular term policy at fraction of my rate 63.00 then invest the difference. If I had done that I would not have an either or situation…and I would still have 100k until 70 in case of death and 68000. in a seperate investment account over the same amount of time. Buy Term. Invest the Difference.

EVERY single whole life policy that I have come across have 3 things in common. THESE ARE SO IMPORTANT!!!!!

1. No money is accumulated for the first 1-5 in the cash value savings account. (I've seen 1 that was 20 years) Would you put money in a bank and come back 4 years down the road with no money in it and be content?

2. If you decide you NEED to take money from your cash value account you have to pay it back to the company with a 5-8 percent interest rate. (On YOUR own money!) Does it make sense to borrow your own money!?

3. If you DIE you LOSE your cash value! The company gets to pocket all of that money! They will ONLY pay the death benefit! If you were paying for 2 things your entire life and you only got 1 at the end what would you call that?


1) You don't benefit from death benefit because you have to die to get it.
2) when you die, your loved ones DO NOT RECEIVE the CASH VALUE! The company keeps it! (who gets rich then?)
3) You mentioned money grows "4% tax deferred" — not all give that much and there can be stipulations…plus for first year or two, there is NO cash value at all.
4) when I called the the whole life company, they told me that if I access any money, I get charged 6% "loan" rate until it's paid back. Others were more. Universal policies can be as much as 8% loan rate!
5) this means I'd have to make 2 payments for the same coverage.
Oh wait…if I don't repay the "loan" then the amount "borrowed + interest" gets deducted from the death benefit for my family!!
6) Whole life is the MOST COSTLY on the market, Universal policies IMPLODE and FTC in 1973 called them for all intents and purposes, a scam.
7) If you can qualify for affordable LEVEL term (death benefit and the premium remains the same) and then INVEST the cost difference + rescue any cash in your WL policy, over the course of your term, you should have close to the death benefit amount in your investments, thus eliminating the need for insurance. (Renewable rates vary greatly between term companies, check those rates out before your commit, plus verify if you need to have health check or not at End of your term.)
8) Upon death, your loved ones get all the money, not just insurance.

There are a LOT of ignorant comments on this thread. Too many people are quick to say "whole life is a scam" without trying to understand how it works. If it was such a bad deal why would banks own over $160 BILLION in cash value life insurance? If someone has a serious question go ahead and post it otherwise you are just a bunch of sheep parroting some "guru"

Lmao what a joker… an annuity is a better way to put 100k into without risk, and that’s not even a priority option.
Never combine insurance with investments people; they are two separate things that should never mix like water and oil.

So I have 100k, and in two years, I have 94k? Making 4%, and when I borrow my own money, you charge me 6 to 8%. The only reason wealthy use this product is to protect themselves from taxes and they have exhausted all other investments. Ugh. Buy a term policy with guaranteed insurability and invst your dough somewhere else.

Guys …. This leveraging concept is not new to money what so ever. It is used in real estate everyday. It is used to acquire companies every single day. It is preached by financial experts every single day. If you are buying a company, do you use the banks money or your own? Even if you have the money in cash you use the bank. Why, because the interest owed on money borrowed is far less than earnings on a larger balance.

In other words. If i have a $500,000 asset (cash, house, retirement account) that earns market rates and want to pull out $40,000 annually, I am going to borrow against that account so the $500,000 keeps earning. Example over 10 years. $400,000 borrowed at 6% (max interest rates insurance companies can charge, currently) $400,000 borrowed with $24,000 in interest owed. That $500,000 never saw a withdrawal and at 7% earnings it doubled. My gross account is now a $1,000,000 with a net account of $576,000. The earnings on my gross account paid off all the debt and interest owed on my borrowed account.

Now if i took distributions on that principal, using the same $40,000 and still earning 7% i would have completely ran out of money in the 14th year. Sooner if the market took a dip. Again, not rocket science. This is used for leveraging stock portfolios, real estate, and now insurance. Successful people use concepts like this everyday, this is finance 101. Stop dismissing people and trolling if you don't know what your talking about.

How much sense does it make to put your money into something that gets a -100% rate of return 4 years in a row? Lol

Interesting comments. The negative comments are from the poor people. The man in the video never made one sales pitch btw. Thank you for attempting to educate the stupidest group of people since australopithecus robustus.

People, I have been in the whole life policy game for a while. Im not an agent. The only one worth buying is whole life, dividend paying, participating from a mutually exclusive company such as massmutual. Do not buy that bullshit variable, IUL, or term. They are NOT guaranteed policies. Term payout is like 2%. IUL and variable you need to OVERFUND and make sure index brings in 5-7% to survive after the 20th year. Whole life is LEGIT, it just takes longer to accumulate if do low amounts. Only very stupid people say BUY TERM and invest difference. The odds of you investing that difference properly is slim to none.

Well, first let me state that not all whole life policies are created equal. A high return policy typically pays north of 5%-7%
If you place your money in a savings account you are looking at an APY of less than 1%, sometimes as low as .5%. Inflation is generally accepted to be at 2% as of October of 2018. In reality, it's closer to 4% But if we come to a middle ground of 3% that means that even if your savings account pays a whopping 1% return, you are losing 2% of the purchasing power of your money every year. In a high yield whole life policy, you are beating inflation and then some. Also, if you take a loan out on your cash value, you are receiving a loan directly from the insurance company, not from your account. The insurance company uses your cash as collateral. Meaning that if you have $50,000 in cash value in your policy and you borrow say $15,000, you are borrowing that 15K from the insurance co. and not from your account. This means that the cash value of your account doesn't drop to $35K, it stays at $50K
The money that you borrow will usually have an interest rate of 4-5 percent. So, at the very least the loan is essentially free, and if you earn over 5%, then you are actually earning more in dividends and interest than what your loan is costing you.
Imagine you own a bank and you are the only customer. If you borrowed from the bank you owned you would have to pay your bank back, but when you pay your bank back, that money is basically flowing to you. Again, not all policies are equal. I have a Universal Life policy from State Farm that I got 17 years ago. I recently borrowed from it's cash value, but they pay so little and charge so much on interest I am not coming out ahead and in fact, am paying out 2.5% of penalty. That's an example of a poor policy. A good policy pays 7% interest and costs you 4 or 5 percent in interest. Plus a non-stock whole Life company is not tied to the stock market, so if the stock market crashed tomorrow, the value of your policy would not drop 1 penny. But a ROTH IRA or a mutual fund or an insurance company tied to the market would lose value instantly.
There are people that stash millions in cash into whole life policies and then loan out money to house flippers at 10 to 14% all the while earning money off the full cash amount of their policy. It's a beautiful system!

@life180, I'm just looking into this stuff now. Do you have any response to this video?

Whole life might be great for people who already have money. But why the hell would you advise a Damm life insurance policy as a means to invest and get wealthy. Especially your misleading people who don't have money, this is the most terrible way to "create wealth".

This wealthy people argument doesn't hold water. I doubt Warren Buffet or Bill Gates have any type of whole life insurance. Risk is relative. It all depends on your portfolio.

The biggest corporations in the world like Wallmart and others the frist investment is the whole life insurance. Whole life has great benefits financial and like he say tax free loans. You can build your own bank and still have death benefit. Whole life money in this policies can not touch for your debts that is one of the bisgest reasons to keep a wholelife in addition the compund interest. He is doing a hard work to explain how wholelife can be very beneficial to you!!! Listen insted to critizar.

if i put say for example 10 grand. i get that i will only be allowed a percentage. My question is what happens if i borrow 9500 and i pass away. do i still have a little life insurance

Do you not listen to this guy. If you want to know the truth buy term, listen to Dave Ramsey. If you want to be poor and make this guy rich buy whole life insurance.

Reading these negative comments remind me how I used to think before, not anymore. I heard bout "Infinite Banking Concept" along with "Bank on Yourself" and other names people used to rebrand Nelson Nash's concept and I did research on it. Took me months of reading books over and over and watching videos from Nelson Nash and others like this channel and now I get it. I have a whole life policy from 5 years ago and although it was good to meet my needs at the time, it would have been great if I had structured it for cash value. My new policy is structures for cash value by utilizing paid up insurance and I have a lot of cash available year 1. For those that follow Suze Orman/Dave Ramsey rant of but term and invest the difference, I suggest you take the time to lean about the concept before you just dismiss it. Comparing term and whole is comparing apples to oranges. Before anyone asks, NO I am not a life insurance agent, just someone that took the time to understand that whole life gives you both death benefits and life benefits.

I sell plenty of cash value insurance and make solid money doing so. I also own plenty of it and love having it. It’s a great product when structured well, but this guy is telling half truths and making vague statements that are supposed to support some conclusion.

First of all, there’s nothing less complicated about how CV insurance works compared to his example of a 401(k). I would submit that a lot of the time it is more complicated than investment accounts. And saying “it’s not your advisor’s fault when your account loses value” is hardly true at all. Advisors should ask good questions and understand your risk tolerance and explain how likely it is to see fluctuations. If you’re surprised by unexpected fluctuations, that is absolutely your advisor’s fault. If you were prepared for fluctuations, then so be it! As long as you don’t sell, you’re fine because it will almost always rebound.

When he talks about liquidity and having access, yes you do have access to cash value, but if it hasn’t grown much yet (which usually takes 10-20 years to be substantial), then even though you’re able to access the cash it’s not really a good idea. Because yes, loans bring interest charges and surrenders are inefficient and decrease value of the contract. By the way, interest on loans is not “your own money” like some of you are saying. You’re using money that the company holds to cover the risk of your death, so it’s the company’s money as long as you have insurance in force.

Also, basis does come out from the cash value first and that is tax-free, but gains above basis are taxed at ordinary income rates unless you use loans (in this case, loans are often extremely efficient and effective) so his insinuation that there’s no tax is kinda true, but it’s misleading.

If you want liquid money that’s also in the market, put your money in a non-qualified investment account that is consistent with your risk tolerance. It’s that simple.

Over 20, 30, or 40 years of aggressive investing vs the same amount of premiums pumped into CV insurance, the investment account wins on value 10 times out of 10. I always recommend doing a little bit of both because they complement each other nicely, and whole life never loses value, so it’s good to access in down markets so that your investments can rebound. But putting everything into CV insurance will leave a lot of money on the table, even in the long run.

Conclusion: When speaking with clients, after I determine their risk tolerance, I’ll recommend somewhere between 10% and 50% of their savings going into CV insurance (10% being a risky investor and 50% being a safe investor). CV insurance is an excellent tool, but it is absolutely not the only part of a good financial plan.

Let's see the math, that backs up you claim! I have seen no evidence of it, any client that I've sat with would have been further ahead buying term insurance and investing the difference in a properly balance, and diversified mutual fund.

You people need to stop using the crap savings interest rates, they have accounts that pay around 2% now, way better than the 1/10th a percent you mention. Still very low but good to keep a small amount of money in.

I have received a lot of questions about, "what is a properly structured whole life policy? What does that even mean and how do I do it?" So I recorded this video to explain it all:

Give it a watch and let me know if you have questions.

Whole life insurance for me is a hedge against taxes. You pay into it with after-tax dollars and the cash accumulates tax-free and you can take it out tax-free. You borrow against the policy, but the interest comes out of death benefit (NOT THE CASH VALUE). Having a tax free retirement vehicle is what will save your retirement such as a Roth. The issue with a Roth is you don't qualify for one once you start making serious money ($140,000 +).

There are no tax-free retirement vehicles besides a Roth and whole life. Buy term and invest the difference, I laugh about that because nobody realizes Uncle Sam is going to increase capital gains tax in the future, which you have no control of. Dave Ramseys of the world don't tell you what was to happen if capital gains increased from 15% to 30%, even 40%? Then what do you do?

Taxes are your biggest liability and expense. People watching Dave Ramsey who work 9 to 5 jobs don't even realize how much the government is ripping you off. Social security comes out of your paycheck (scam). Add social security you've paid in and see if you'll even receive it in 40 years.

Whole life is also about the riders as well. Disability and Long term care riders. Healthcare and taxes are the biggest expenses and liabilities when you get older.

I don't sell life insurance. I buy multi-family real estate also invest a ton in mutual funds & ETFs. Tax-free vehicles are what you want. Don't listen to people's nonsense on buy term and invest the difference. I strongly recommend you invest more money outside of whole life more, but don't dismiss the whole life. Otherwise, you don't understand how the government will come after your retirement through capital gains.

Wait wait… Robert Kiyosaki clearly explained this as you sell your policies to someone for a cash settlement (less than the value) the buyer then takes over the payments and becomes the beneficiary… is this not correct???

Only dummies "invest" into life insurance. I have things called businesses that generate recurring income for me. In my early years i bought low cost high value term. Once i no longer needed (beat the rat race) i got rid of life insurance immediately. Again only suckers buy and keep life insurances. Dont be a sheep -Rick Sanchez

He's not referring to the typical Whole Life Policies. This is a High Cash Value Whole Life Insurance Policy that generates immediate cash value. There must be a reason why banks, and high net worth individuals put their money in these policies.

The wealthy are the only people a whole life policy might make sense for, since they have the level of wealth to be able to reap the tax advantages of a whole life policy, which most people can't. Love the "financial downturn" scare tactic-there are a lot of investments that aren't risky that offer better return and fewer pitfalls than WL.


You are full of shit. It's clickbait to use Kiyosaki's name. We are all expecting to see Kiyosaki in the video educating us about whole life benefits but he's not part of this. You are a poor shill and a loser who believes everyone is dumber than you are.

I acquired my whole life 5 years ago when i was 35 … the contract is for 20 years. So far i have $6,000 in cash value. Right about what i have paid so far. So basically I’m even as long as i don’t surrender yet. I’ll be only 55 when my insurance is paid off with a guaranteed cash value of $60,000 and a whenever i die a benefit of $130,000 not bad. I know that with inflation it’ll be less… but still will be good money for my family.

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