Why Infinite Banking is a SCAM!

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[aaap]

Only 3 things are certain in life.
1) Death
2) Taxes
3) Dave is doing better than he deserves

[adrianchivas]

I bought your book "How to scam people on Internet"...
...and I still haven't received it.

[creepypastaanecdotes]

It sounds like the same exact thing the IRS does with federal income tax, minus the interest. "Refund of a deliberate overcharge."

[Mo-fusm]

Please don't ask Dave how he's doing cos He's doing better than he deserves.

[jeffmitchell]

Dave talkin like the IRS is tryin to help us lol

[blurisking]

I’d like to understand what you’re saying, but I don’t.

I feel like this might be something you’re speaking on that you don’t fully understand.
Here’s my question:
If what you’re saying is true, and all I would be getting back would be about 70% of the amount that I overpaid, then how after the seven-year mark is my cash value above the total amount I’ve paid into the policy?

[Frankdinerobritt]

Dave is wrong You aren’t borrowing your money but the money of the Company your money stays and grows over time you pay it back on your terms depending on you structure and if you don’t pay it back it comes out of your death benefit

[busyrand]

Fourth time listening to this... Now I finally understand, and I used to sell Insurance (mainly Health Insurance, and only sold Life Insurance based upon what they said they wanted... I'd explain one of these you rent the other you own after paying for a period of time, then I show them the premium amounts for the insurance pay outs).

[carlosgarcia-jzdq]

it's amazing how trickery and confusion is the prefered way to steal money, so in almost any business situation, if you don't understand or barely understand, that part you don't understand is exactly where they are robbing you.

[ClarkAve]

We need a Dave Ramsey Jame Neathery versus....

[danmar]

It doesn't seem to matter what anyone says, someone will come along and claim it's BS. It's up to us to figure it out.

[HandlesAreForTools]

“Jesus, you’re kidding me.” Taking the Lord’s name, publicly, but what people do in private, he fires them. Got it.

[fivefive]

Dave spends his entire time talking about whole life and still didn’t broach the subject of infinite banking.

[nagarajakotige]

He had not even read Becoming your own banker..

[SF-eoxf]

If the IRS doesn't even wanna tax you on your supposed divodend/profit then you should know something is fishy. Lol

[Bjohnson]

In 1970 I converted a $10, 000 military Life Insurance Policy to a Northwest Mutual $10, 000 Whole Life Policy. Since that time I have paid $15.16 per month... for 50--years now. So I have paid in cash $15.16 x 12 = 181.92 per year... for 50-years... or $9, 096 total. My policy Death Benefit is currently $75, 611 current cash value is $60, 005. Can someone please explain to me why this Whole Life Policy has been a bad deal? If I had $9000 in 1970 (which I did not) and I assume an average of 3.5% annual interest rate... compounded for 50-years... by my calculation I would now have about $40, 000 cash. But my current cash value in the Whole Life Policy is $60, 005.. and death benefit is $75, 611... so this Whole Life Policy seems to have benefitted me. Where am I going wrong in that belief?

[KTSpeedruns]

Ah. It’s like using a $50 bill to pay for a $39 item, getting $11 back, and calling the $11 a dividend.

[waaaaaaaaaaap]

Dave himself has whole life insurance but will never tell you that

[trisnics]

I was suggested this random youtube channel. I went down a rabbit hole and found that it was all about selling this infinite banking stuff.

There was video on there where the guy got really mad at people for putting 150k down on a mortgage and having a 15 year term because more money for the infinite banking and a 30 year would have been better, according to him.

Then the guy was going on about how he is going to help his family pay off 70k in debt by borrowing from this system. He talked his family members into getting policies and then borrowing against their own money to pay their debts. There was no comment about how the two leased cars were a bad call or about a massive spend on a wedding being what got them into debt in the first place. The end "episode" was about how his wife was the beneficiary of his brothers policy and how the insurance company said no and he was appealing that.

It was all so convoluted. It reminded me of a cross between an MLM website from the 2000s and a cult. They were all about how the banks are so bad yet these same people are selling insurance on a commission in a way that has people keeping these policies until they die. So how is that any better? Well, it's not. I definitely got the spidey sense off of that one and so I searched this out.

[christhompson]

My husband has a 40 year old whole life policy with Prudential. Every year he gets a dividend tax form, and always reports it as income on his IRS 1040 form. So Dave is saying he doesn't need to report it? I think the policy should be cashed in, but due to heart disease he could never get a term life policy for such a low price.