The Smart Way To Buy Cars (Bank on Yourself) (Infinite Banking)
Summary
TLDRThe video script advocates a smarter approach to purchasing cars and preparing for retirement, challenging traditional banking advice. It suggests using a cash value life insurance plan to finance major purchases, thereby avoiding bank interest and taxes while leveraging compound interest. The example given illustrates how instead of losing money on a car's depreciation, one can actually gain by using their own funds, ultimately increasing financial control and retirement savings.
Takeaways
- 🚗 The speaker proposes a smarter way to purchase cars that challenges traditional banking advice on wealth growth and major purchases.
- 💼 The concept is based on using a cash value life insurance plan to finance a car for a client's son, with the aim of financial empowerment.
- 📊 The average American spends more on cars than they save for retirement, indicating a need for a more strategic approach to car purchases.
- 💡 The idea is to use a properly structured cash value life insurance plan for guaranteed no-loss, tax avoidance, and uninterrupted compound interest growth.
- 🔢 The example given is a $30,000 car financed at 4.99% interest over 7 years, resulting in a total cost of $35,616 when paid in cash or through a bank loan.
- 📉 The depreciation of the car is highlighted, with the car being worth only $10,000 after 5 years, leading to a loss of $25,616.
- 🏦 The traditional method of financing through a bank is criticized for being expensive and for not allowing the use of one's own money.
- 💰 The alternative is to 'be your own bank' by borrowing from the cash value life insurance plan, keeping the money within one's financial control.
- 📈 The speaker emphasizes the ability to earn interest on the same money in two places with a properly built plan.
- 🔄 At the end of the 7-year period, instead of losing money, one can have access to $45,616, including the car's resale value.
- 📚 The speaker's book, 'Taming Wall Street,' covers this strategy in detail and offers mentorship for implementing it in one's financial life.
Q & A
What is the main argument presented in the video script against traditional bank loans for purchasing cars?
-The main argument is that traditional bank loans for purchasing cars result in significant interest payments and loss of money due to depreciation, ultimately leading to a net loss rather than building wealth.
What alternative method for purchasing cars is suggested in the script?
-The script suggests using a properly structured cash value life insurance plan as an alternative method for purchasing cars, which allows individuals to use their own money and potentially avoid the losses associated with bank loans and cash purchases.
Why is buying cars with cash considered a 'terrible way' according to the script?
-Buying cars with cash is considered a 'terrible way' because it involves spending a large amount of money upfront without the potential for any return or investment growth, and it does not leverage any financial instruments for potential benefits.
What are the benefits of using a cash value life insurance plan for purchasing a car as mentioned in the script?
-The benefits include never losing any money on the investment, legally avoiding taxes, and the ability to grow money every year without interrupting the compounding interest calculation.
How does the script define the 'smart way' of purchasing a car?
-The 'smart way' of purchasing a car, as defined in the script, involves borrowing from a cash value life insurance plan, making payments over time, and ultimately having access to the original amount plus any gains, while also owning a depreciated but still valuable vehicle.
What is the potential downside of trading in cars with car dealers when one is upside down in their loan?
-The potential downside is that being upside down in a loan means owing more on the car than it is worth, which negatively impacts one's financial situation and compounds against them, leading to further losses.
What is the significance of the number '84 months' mentioned in the script?
-The number '84 months' refers to the seven-year time frame over which the car loan payments are made, highlighting the long-term financial commitment involved in purchasing a car through traditional means.
How does the script suggest one can recoup the money lost on a car purchase?
-The script suggests recouping the money by using the cash value life insurance plan to borrow against the money, allowing the original investment to continue earning interest as if it were never borrowed, and by selling the depreciated car to contribute towards the next purchase.
What is the potential financial outcome after seven years if one follows the script's advice on purchasing a car?
-Following the script's advice, after seven years, one could potentially have access to the original car purchase amount plus any gains, plus the value of the car sold, resulting in a significantly better financial outcome than traditional methods.
What is the author's goal in presenting this alternative method for purchasing cars?
-The author's goal is to educate viewers on a smarter way to manage finances, particularly for major purchases like cars, with the aim of strengthening their financial situation and preparing for retirement more effectively.
How does the script address the issue of car depreciation?
-The script acknowledges that car depreciation is inevitable but suggests that by using a cash value life insurance plan, one can mitigate the financial impact of depreciation by leveraging their own money rather than losing it to bank interest.
Outlines
🚗 Smarter Car Purchasing with Cash Value Life Insurance
The speaker introduces a strategy for purchasing cars and preparing for retirement that challenges traditional banking advice. They discuss using a cash value life insurance plan to finance a car purchase for a doctor's client, emphasizing the benefits of using one's own money instead of borrowing from a bank. The speaker illustrates the financial loss incurred by traditional car loans due to interest payments and depreciation, and contrasts this with the potential savings and benefits of using insurance policy funds, including tax advantages and uninterrupted compound interest growth. The example provided involves a $30,000 car purchase, with calculations showing the total cost over seven years and the depreciation value of the car at the end of that period.
💡 Becoming Your Own Bank with Cash Value Life Insurance
In this paragraph, the speaker explains the concept of 'being your own bank' by using a properly structured cash value life insurance plan. They detail how borrowing from the insurance plan allows the policyholder to earn interest on the same money in two places at once. The speaker provides a hypothetical scenario of borrowing $30,000 for a car purchase, showing that while interest is paid on the borrowed amount, the policy continues to earn interest as if the money was never withdrawn. This approach results in the policyholder retaining possession of their money and potentially using the car's resale value to further invest in the insurance plan. The speaker invites viewers to share their experiences with such plans and promotes their book, 'Taming Wall Street,' which covers this strategy in depth. They also extend an invitation to doctors and business owners to learn more about leveraging these financial tools for various investments and purchases.
Mindmap
Keywords
💡Cash Value Life Insurance
💡Compound Interest
💡Depreciation
💡Interest
💡Retirement
💡Tax-Efficient
💡Banks
💡Major Purchases
💡Control
💡Asset
💡Taming Wall Street
Highlights
The speaker proposes a smarter way to purchase cars and prepare for retirement, contrary to traditional banking advice.
A doctor client's idea to use cash value life insurance to purchase a car is used as a case study.
The average American spends more on cars in their lifetime than they save for retirement.
The conventional method of buying cars with loans is critiqued for its high cost and depreciation.
A properly structured cash value life insurance plan offers guarantees, tax avoidance, and uninterrupted compounding interest.
The traditional car loan results in a significant loss after accounting for interest and depreciation.
The concept of 'owning your own bank' through life insurance is introduced as a way to access and use personal funds without losing them.
The speaker explains how to use personal funds for purchases without the traditional bank interest costs.
The comparison of traditional car buying versus the proposed method shows minimal difference in payments but significant difference in financial control.
The potential to recoup and reinvest the money used for purchasing a car is highlighted.
The speaker shares personal experience using this method for various purchases over a decade.
The benefits for doctors and business owners are emphasized, including tax avoidance and guaranteed returns.
The speaker invites viewers to learn more about this method and offers mentorship.
The choice between traditional and smart buying is presented, with a clear preference for the latter.
The speaker's book 'Taming Wall Street' is mentioned as a resource for further understanding.
An invitation to subscribe and engage with the content for more financial insights is extended.
Transcripts
I want to show you what I believe is a
smarter way to purchase cars and prepare
for retirement and it's going to fly in
the face of everything that banks teach
us as far as growing our wealth and
making major purchases I miss for a
doctor client of mine who wanted to use
the money inside of his cash value life
insurance plan to purchase a car for his
son
and so I've diagrammed out the numbers
and want to go through those with you
because at the end of the day I want to
help more Americans strengthen their
financial situation and be ready for
retirement and right now we believe that
banks are on our side and they're just
not they're out for themselves they're
making a killing and marginal spread and
now it's time to take back control of
our money and the use of our money no
more locking it up did you know that the
average American will spend more on cars
in their lifetime than they will ever
save for themselves now you've probably
bought cars if you are watching this and
you've probably lost money on every car
and today I want to change that I want
to show you a better way so this does
require being patient and setting up a
properly structured cash value life
insurance plan but with that comes
guarantees you'll never lose any money
the ability to legally avoid taxes and
the ability to grow your money every
single year that means you're never
interrupting the compounding interest
calculation on your money and so I want
to go through these numbers so the car
is a thirty thousand dollar car at four
point nine nine percent interest for
seven years and when we go through this
you're probably going to say yeah this
is how I've bought every one of my cars
if you've never bought a car in cash
which is a terrible way to buy cars by
the way but let's go through this so
when we run the calculation the pain
is going to be 424 dollars a month for
seven years that's 84 months so at the
end we're going to pay the bank thirty
five thousand six hundred and sixteen
dollars what that is is every month you
take money out of your pocket and you
hand it over to the bank two things
happen
number one you no longer have possession
of that money and number two you won't
see that money again okay so we want to
take back control we want possession of
the money and we want to be able to use
that money again okay and not just
because we sold the car because you're
gonna see right now that because of
interest but even more because of
depreciation
you're gonna lose money on cars it's
just the way it goes
but it doesn't have to be that way so
pay attention okay
so thirty five thousand six hundred and
sixteen is what you've given over to the
bank right so it was originally thirty
thousand dollars so the five thousand
six hundred and sixteen that's the
interest for the right to borrow
somebody else's money it's expensive to
use somebody else's money so I'm gonna
show you how to use your own but after
five years you've got a hundred thousand
miles on that car you've got wear and
tear it's gonna be worth about ten
thousand dollars so that means two
things that means unfortunately you lost
twenty five thousand six hundred and
sixteen dollars on this car purchase but
the good news is you've got ten thousand
dollars to go towards the purchase of
your next car and right now the majority
of people trading in cars with car
dealers are upside down in their loan so
that's that's a bad thing that's that's
negatively compounding against you right
so this is the way that nearly a hundred
percent of financed cars are purchased
there are people that buy in cash and
again in another video I'll show you why
buying your cars and cash is the worst
thing that you can do it's even worse
than using a bank but this is the way
that most people buy their car now
imagine that you have set up your own
bank through a properly structured cash
life insurance plan and you've now got
money that you can deploy that's right
you've got access to your own money and
you can go out and you can use it in the
real world for investments recouping the
lost money on major purchases like cars
or a washer and dryer or whatever it
might be it's your money
if it's in an IRA or a 401k it's locked
up you can't have access to your money
if you don't believe me go try to get
some but with this we can borrow against
that money and have it continue to earn
interest as if the money were never gone
now when I first heard that almost 12
years ago my mind was what was exploding
I was like wait a minute I how do I earn
interest in two places at the same time
with the properly built plan you can so
let's run through the numbers if you
were to be your own bank okay we borrow
the $30,000 and yes we are going to pay
interest on that but this is going to
continue to earn as if the money were
never gone okay so now instead of doing
it the traditional way we're gonna do it
the smart way but you're gonna notice
something the numbers are about the same
the payment is four hundred and twenty
four dollars the time frame eighty four
months is the same the difference is who
has possession of the money right so
instead of taking money out of your
pocket and giving it to the bank
you're gonna take money out of your
pocket and you're gonna stick it in your
other pocket okay so at the end of the
seven years you've recoup you've put
that thirty-five thousand six hundred
and sixteen back in your own account
okay plus in the real world you still
have a vehicle worth ten thousand
dollars you sell that and if you have
the capacity you dump that back into
your insurance contract if not you just
haven't to go towards your next car
purchase but either way at the end of
the seven years you have forty five
thousand six hundred and sixteen dollars
now answer in the comments below have
you ever seen this before
has anyone ever shown us too
and if you already have one of these
properly built cash value insurance
plans have you used it for real estate
or for a major purchase in your own life
I'd love to hear your story I've been
doing this now for over a decade with my
own money we've done our minivan
purchase my truck my Jeep we've done
some some rental properties it's just
incredible what you can do when you have
control and access to your own money so
let me ask you this this is kind of a
dumb question but at the end of seven
years would you rather have lost twenty
five thousand six hundred and sixteen
dollars or would you rather have access
to forty five thousand six hundred and
sixteen dollars I already know the
answer now for most people this is new
and this is what my best-selling book
taming Wall Street covers and I want to
mentor you to having more money in your
life I want to show you how the average
American could take one of the biggest
expenses in their life and turn it into
an asset that will give them more money
than the average person during their
retirement years and for my doctor
clients and my business owner clients
you can do so many things with this
equipment purchasing car leasing all
kinds of things owning your own building
owning your own mortgage there's so many
neat things that you can do and so
doctors business owners those of you
watching this video I invite you to
learn more about this who wouldn't want
to legally avoid taxes who wouldn't want
to be guaranteed that you'll never lose
on your money and who wouldn't want to
compound their money every single year
even when the money is outside of the
plan hey if I can help you reach out to
me and Stephen with a pH at your bridge
plan calm otherwise please subscribe to
this video and hit that Bell so that
you're notified of other great videos
and content that I'm putting out so do
you want to buy the traditional way or
the smart way I leave it up to you but
I'm here to help if I can
thanks for checking out today
is video
浏览更多相关视频
How To Use Infinite Banking to Buy a Car | Infinite Banking with Chris Naugle
"How To Turn $500 Into $400,000 With COMPOUND INTEREST"
Roth IRA vs Traditional IRA | Which is BEST for you?
10 Worst Money Mistakes of My 20s (so far…)
Principles of Macroeconomics- Personal Finance and Compound Interest
Put Your MONEY in These 6 Assets Instead of BANKS
5.0 / 5 (0 votes)