Paradigm Life » Blog

Special Guest – Tom Dyson, Publisher of Common Sense Publishing

dtorsak — Tue, 14 Feb 2012 01:40:58 +0000

Special guest Tom Dyson of Common Sense Publishing and The Palm Beach Letter discusses with host Patrick Donohoe the current economic environment, the financial newsletter and publishing industry and what’s next for the financial markets.

Bio:

Tom Dyson, Publisher of Common Sense Publishing

Tom bought his first stock when he was 11 years old. He has been studying the art of investing and speculating ever since.

Tom graduated from the University of Nottingham in the United Kingdom. He’s a member of the Chartered Institute of Management Accountants, one of Britain’s top accounting bodies. He has also worked for bond trading desks at Salomon Brothers and Citigroup.

For the past six years, Tom has spent his time researching and writing about conservative income investments. His income-focused newsletter, The 12% Letter, was one of the most popular advisories in America. Tom currently lives in Palm Beach County, FL with his wife and two sons.

To learn more about about Tom Dyson and The Palm Beach Letter, visit their website:

www.palmbeachletter.com

For more information about Paradigm Life and Infinite Banking, download our article or contact us at info@paradigmlife.net or by phone at 1-800-870-8670.

Infinite Banking – The Broken Banking System and What You Can Do About It

admin — Fri, 23 Dec 2011 19:03:59 +0000

Recently our friends at The Real Estate Guys interviewed on their radio program economists Robert Murphy and Carlos Lara, authors of the book How Privatized Banking Really Works. They discussed the current state of the banking system and how it has changed.

“Today’s banking system is a far cry from George Bailey’s Bailey Building and Loan in the classic film “It’s a Wonderful Life”.

Back then, savers put money in local institutions where local bankers lent it out to local borrowers. It was very community focused.

Today, everything funnels through Wall Street and the Federal Reserve, and the last few years have shown that when deals get made too far away from Main Street, weird stuff happens - like meltdowns and bailouts.”

“But before you just park all that cash in a broken banking system, listen to Robert Murphy and Carlos Lara explain an alternative which provides direct current benefits to you, while circumventing the fractional reserve system that they say contributes to the problems the current system causes. VERY interesting stuff!”

You can read the blog post on their website www.realestateguysradio.com/blog or listen to the show: Infinite Banking – The Broken Banking System and What You Can Do About It

You can find out more information about Robert Murphy and Carlos Lara and their book How Privatized Banking Really Works by visiting their website – www.usatrustonline.com.

To learn more about the Real Estate Guys Radio and the insight they provide regarding real estate markets, the economy, and much more, visit their website www.realestateguysradio.com.

Every year The Real Estate Guys put on a great event called: Investor Summit at Sea. This year they are having their 10th annual event which includes Robert and Kim Kiyosaki from the Rich Dad organization. To learn more about this great educational event visit their Investor Summit at Sea page.

For more information about Paradigm Life and Infinite Banking, download our article or contact us at info@paradigmlife.net or by phone at 1-800-870-8670.

Special Guest – Ken McElroy, Principal of MC Companies and Rich Dad Advisor

admin — Thu, 15 Dec 2011 16:53:01 +0000

Special guest Ken McElory joins Patrick Donohoe to discuss real estate, entrepreneurship and being a Rich Dad Advisor with Robert Kiyosaki’s Rich Dad organization.

Bio:

Ken McElroy, Principal MC Companies

Ken McElroy, Principal and Co-Partner of MC Companies, has over 20 years of senior level experience in multifamily asset/property management, development, project/construction management, investment analysis, acquisitions and dispositions, business development and client relations. Having purchased over $300 million in real estate in the past two years, Ken offers a unique perspective into property management and entrepreneurship.

Ken is also is the best-selling author of “The ABC’s of Real Estate Investing”, “The Advanced Guide to Real Estate”, “The ABC’s of Property Management” and his latest book “The Sleeping Giant” which helps inspire people to believe that they can be part of solving the world’s economic problems by creating business. ”The Sleeping Giant” brings together twenty self-employed entrepreneurs who share their powerful and inspiring stories of how they found success through self-employment.

This spring Ken will continue his role as Real Estate Guys Radio Investors Summit Faculty member for the Investors Summit at Sea in which Patrick Donohoe will also be a faculity member for the 2nd year.

To learn more about Ken McElroy please follow the links below:

KenMcElroy.com

MCCompanies.com

Find Ken McElroy’s Books on Amazon

For more information about Paradigm Life and Infinite Banking download our article or contact us at info@paradigmlife.net or by phone at 1-800-870-8670.

Money, money, money… What is it really?

admin — Tue, 22 Nov 2011 18:41:38 +0000

Money has become a very popular topic, especially as of late. Considering we as an international community are trying to pull out of a global recession, there is nonstop news about struggling economies, the Euro-zone crisis and the US fiscal situation. 24 hour news stations, newspapers, podcasts, radio shows, you name it…we are being bombarding with anything and everything that has to do with money.

Often it seems that money – what it represents, how it is created and why we even use it – is enigmatic. Examples of this can be seen every day in the news media and public opinion. There seems to be a very wide range of thought and belief about what money is and how it should be controlled, created, handled and used. Patrick Donohoe of Paradigm Life and Brad Gibb, MAcc discuss many of these topics when discussing: What is money, Really?

Useful Links:

- International Monetary Fund

- Federal Reserve

- Foundation for Economic Education (FEE)

For more information about Paradigm Life and Infinite Banking download our article or contact us at info@paradigmlife.net or by phone at 1-800-870-8670.

Cash Value and Whole Life Insurance

admin — Wed, 26 Oct 2011 17:33:38 +0000

Cash value of a whole life insurance policy is the contractual dollar amount the insurance company will exchange with a policy owner in the event the insurance policy is cancelled. This same cash value is the basis by which the insurance company will loan to the policy owner. The loan is collateralized by the cash value. The insurance company will not lend the policy owner more than the total cash value.

Cash value is also accessible by the policy owner through a partial surrender which is a physical withdrawal of the cash value.It is important to understand what cash value is, how it grows and how it can be utilized.

Cash Value Growth

Whole life insurance is a unilateral contract between the insurance company and the policy owner. In this contract there are guarantees and benefits to the policy holder(s), one of which is guaranteed cash value growth. Cash value grows tax free. When the cash value is withdrawn for income or otherwise, it is also tax free until the withdrawals exceed the basis of the policy. The basis is the amount of premiums that have been paid over time by the policy owner. At this point the withdrawals are taxed at ordinary income tax rates.

Cash value also grows if the policy owner elects to have his dividends buy paid up additions. Dividends are declared every year by the Mutual Insurance Company. In the subsequent year they are divided amongst policy owners on the anniversary date of their policy. The anniversary date is the month and day the policy was originated. Although dividends are not guaranteed mutual insurance companies have a long track record of paying dividends. Some companies have paid for over 100 years.

Loans against Cash Value

Through the policy loan provision, a policy holder can access the value of his cash value without incurring taxes. This is because policy loans are treated as debt, which is not a taxable distribution. A similar financial transaction is a Real Estate cash out refinance. No taxes are paid on the refinance proceeds. Although policy loans are not required to be paid back, it is recommended. The Insurance company charges interest on the outstanding policy loan but do not require payments to be made. However, an outstanding policy loan will reduce the overall available cash value and if death were to occur with an outstanding policy loan, the loan would be paid back via the death benefit proceeds.

Whole life insurance is a unique financial product because of the guarantees, tax benefits and historical positive performance. For more information about how whole life insurance can play a part in your financial situation contact us at 1-800-870-8670 or by email at info@paradigmlife.net

To learn more about Infinite Banking and the guaranteed benefits found within permanent life insurance download our free article.

Analyzing the Real Estate Market and Economy with Special Guest Jonathan Day

admin — Wed, 12 Oct 2011 21:24:41 +0000

We live in a unique time. We have seen unprecedented uncertainty in the economy and the real estate market over the past years. Housing and real estate is an integral part of life and the economy in the United States and it can be difficult to understand what is going on and why. Jonathan Day, Owner and CEO of Turn Key Real Estate Partners, joined Patrick Donohoe to discuss what is happening in the housing and real estate market, how it has effected the economy and where we are headed.

To learn more about Turn Key Real Estate Partners visit their website – www.TurnKeyRealEstatePartners.com

For more information about Paradigm Life and Infinite Banking download our article or contact us at info@paradigmlife.net or by phone at 1-800-870-8670.

Deciding Whether Infinite Banking is for You

admin — Fri, 23 Sep 2011 17:26:14 +0000

When deciding whether or not Infinite Banking is for you, it is important to understand exactly what Infinite Banking is and how it can be applied to your specific situation. “Infinite Banking” is the popularized system that utilizes whole life insurance structured in a way that it maximizes its living benefits in conjunction with the death benefit.

Keeping it Simple

Fundamentally, Infinite banking is a very basic concept based on banking principles so as to reduce costs associated with financing and borrowing (don’t forget the added benefits Infinite Banking can have – Liquidity, Safety, Growth and Tax Benefits). With Infinite Banking the policy owner can take the position of lender and borrower (or just lender) and in essence remove the added expense of 3rd party lenders or potentially be the 3rd party lender. The result is potentially more money in your pocket. Although the concept is basic on the surface, there is much to understand when learning about and considering Infinite Banking. Structuring an Infinite Banking policy takes expertise and understanding of how to appropriately set up the policy to meet your individual needs, wants and goals.

Things to consider:

Why Infinite Banking?
Utilization
Immediate needs
How can it fit into other activities (IE Real Estate, etc)?
Long-term contributions and growth
Death Benefit
Future tax implications

In structuring a policy there is no cookie cutter way to accomplish and meet the goals of every client. There are many tools and techniques that are put into practice when building a policy for the specific needs of a client. When considering a professional for Infinite Banking seek out one that will explain how and why the properly structured policy will meet your goals. You should also consider this relationship to be long-term. When considering Infinite Banking you will want to seek out someone you can rely on and who has the experience and expertise to offer Infinite Banking advice and an open ear.

Lastly, do your research. A great starting point is to read the book Nelson Nash wrote that coined the term “Infinite Banking” and popularized the concept – Becoming Your Own Banker. At Paradigm Life we will be the first to admit that Infinite Banking isn’t for everyone, but it is something that everyone should learn about and consider.

For more Information about Infinite Banking download our free article. You can also contact us at 1-800-870-8670 or by e-mail at info@paradigmlife.net.

The “Infinite” in Infinite Banking

admin — Mon, 12 Sep 2011 16:40:48 +0000

Flexibility and the ability to use money as you best determine is priceless; our current economic situation has shown us this. For the last three to four years we have experienced a very difficult environment with regards to lending, spending and saving. But where there is bad there is good, and the economic upheaval has created opportunities we can take advantage of.

Infinite Banking got its name because of the limitless possibilities in which you can use a properly structured life insurance policy. A properly structured policy is one that is built on a whole life chassis and with the appropriate paid-up additions rider(s). These elements allow for the least amount of risk and the most guarantees, which is the best foundation in which to structure and utilize the Infinite Banking system.

“Infinite” Banking

As the name implies, “Infinite” Banking is a system which can be used for anything. Many of our clients utilize the system for personal and business uses. In utilizing the Infinite Banking system they are practicing the basic principles found within the banking industry and can hold the positions of the “lender” and “borrower” simultaneously, but they could also just be the “lender” while someone else is the “borrower”.

Businesses and Infinite Banking

These same benefits and utilization of Infinite Banking can be brought into the business realm. In fact the Infinite Banking concept has been used by large banks and corporations for quite some time now, but it goes by a different name: COLI – Corporate-Owned Life Insurance and BOLI – Bank-Owned Life Insurance. Below you will find a portion of the most recent ledger from Wells Fargo (notice the figures are in Thousands) which is the cash value of the life insurance (BOLI) they own – $19,334,000,000.

Why do they have this and what are the uses? They own the life insurance because it helps protect them from the loss of key employees (Death Benefit) , but allows them to utilize the dollars for multiple things such as tier 1 capital requirements and employee benefits (Living Benefits), just to name a few.

Click to Enlarge: Wells Fargo FDIC Ledger with Cash Value Totals Shown - In Thousands

Infinite Uses

The power of Infinite Banking is found within the four main attributes that it can carry – Liquidity, Safety, Rate of Return and Tax Benefits not to mention the death benefit. Infinite Banking is a system that allows the owner to participate in these attributes, creating infinite possibilities (your dollar doing multiple things – death benefit and utilization). See if Infinite Banking is right for you – do some research on how these policies are structured and how it would benefit you. Don’t pass up on the opportunity of taking advantage of one of the most powerful financial tools today.

If you would like to learn more about Infinite Banking call us at 1-800-870-8670 or e-mail us at info@paradigmlife.net.

Paid-Up Additions Riders (PUAR)

admin — Thu, 25 Aug 2011 18:19:25 +0000

The Paid-Up Additions Rider is an important component to maximizing cash-value within whole life insurance and is a vital component when structuring an Infinite Banking policy. As a result of its importance, the PUA Rider must be properly added to a policy as well as explained by an experienced professional that fully understands its benefits and limitations. Let’s first define what the Paid-Up Addition Rider is and the variations that exist within this insurance rider family.

Paid-Up Additions Rider

The Paid-Up Additions Rider is added to a whole life insurance policy that purchases “Paid-Up Insurance”. Paid-up insurance is insurance that is fully paid and requires no new premiums. The PUA Rider creates immediate cash value in the policy.

Annual Paid-Up Additions Rider (APUAR)

The Annual Paid-Up Additions Rider allows for annual payments into the PUA rider. It is often referred to as a scheduled PUA.

Single Paid-Up Additions Rider (SPUAR)

The Single Paid-Up Additions Rider allows for a one-time payment into a PUA rider and is often referred to as an unscheduled PUA. This traditionally occurs when a policy is initiated but can also occur while the policy is in force.

Vital Piece of the Puzzle

The utilization of the Paid-Up Additions Rider with traditional whole life insurance creates more flexible terms and immediate cash value. It also accentuates whole life insurance’s century-long track record of guaranteed growth and living benefits.

The PUA Rider is a vital component of a properly designed Infinite Banking policy. The understanding of this rider is paramount. Due to the effect the PUA Rider has on the death and living benefits of a whole life policy, it is vital the insurance professional understand how PUA Riders work and how to properly use them.

In large part to Nelson Nash’s book “Becoming Your Own Banker” and many others written thereafter, Infinite Banking is becoming well known. As our economy continues to exude uncertainty, alternative ways to save money is on the mind of many, as traditional vehicles have become too risky.

If you are contemplating the use of the Infinite Banking Concept in your personal finances and are searching for a competent advisor and company to educate and support you, keep in mind that in order for the Infinite Banking Concept to work properly, the insurance policy must be set up with the proper use of the PUA Rider.

To learn more about Infinite Banking and PUA Riders contact us at 1-800-870-8670 or by e-mail at info@paradigmlife.net.

Searching for Clarity

admin — Thu, 11 Aug 2011 21:54:52 +0000

Patrick Donohoe and Brad Gibb MAcc made the trip to Nashville to attend the “Night of Clarity” event hosted by the authors of “How Privatized Banking Really Works” Robert P. Murphy and Carlos Lara.

Brad and Patrick discuss many of the topics and speakers from the Night of Clarity event and how the current economic situation effects you, your family, community and businesses. Key to the discussion is the continued willingness to gain understanding and knowledge, and be a part of the larger overall discussion with regards to your finances and the economy.

Below you will find valuable links to information and resources that can help provide more clarity and understanding of the current economic environment.

Resources:

Foundation For Economic Education: www.Fee.org
Ludwig von Mises Institute: www.Mises.org
MyMoney.gov: www.MyMoney.gov
National Endowment for Financial Education: www.Nefe.org
Becoming Your Own Banker: www.InfiniteBanking.org

To learn more about Paradigm Life and Infinite Banking visit – www.ParadigmLife.net or contact us at 1-800-870-8670 or by e-mail at info@paradigmlife.net.