While assets like IRAs and 401(k)s are typically bankruptcy exempt, they also have restrictions on the way the money they store can be used. Enter the Bank on Yourself whole life policy which we had Sarry Ibrahim on the show to tell listeners all about. Sarry is a licensed Bank on Yourself adviser who helps his clients build a healthier financial future through the asset protection, growth, and liquidity his policy provides.
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In today’s conversation, Sarry lets us in on the scope and benefits of the Bank on Yourself plan. The policy provides a way to protect the money that a policyholder wants to keep liquid so that it can be accessed and used at any given time. Usually, money of this kind would go into a checking, savings, money market, or brokerage account, thus being accessible but unprotected. The Bank on Yourself plan in contrast offers a place to earn interest on money and keep it protected but also accessible at any time. Sarry gets into the nuts and bolts of how this is possible today. Our conversation also covers some of the fine print and potential downsides of going the Bank on Yourself route and Sarry transparently shares any information you might need before opting into it. Tune in to find out how you can keep your assets liquid but also safe from creditors and predators today!
Key Points From This Episode:
- What the Bank on Yourself plan does to protect bankruptcy nonexempt assets.
- Reasons for people to sue whether you did something illegal or not.
- How to approach and vet an insurance plan to tell if it is a Bank on Yourself one.
- Borrowing money from the insurance company using your stash as collateral.
- Earning interest on the cash value from day one of the Bank on Yourself plan.
- Looking out for the non-direct recognition loan feature allowing you to borrow from a plan.
- How Sarry helps clients fund their plan based on their goals using a questionnaire.
- Six reasons to protect your cash in a Bank on Yourself policy: no fees, volatility, tax, etc.
- The fine print relating to guarantees and non-guaranteed payment of dividends.
- How to work around converting to a MEC while adding to the fund and paying a loan back.
- Downsides: the life policy fee, and paying back the loan to avoid the policy from lapsing.
- Common questions Sarry gets asked about liquidity and missed payments.
- The value of taking out a Bank on Yourself policy even with a small savings.
- Limits to the number of policies one person can have.
- Typical timeframes for when a policy’s yields outpace its costs.
- A breakdown of fixed vs growth mindset responses to losing $50,000.
[bctt tweet=”You don’t have to necessarily break the law to get sued. You can just be a target based on the amount of money you make publicly. That can be enough for creditors and predators to reach out to you to try to sue you. — Sarry Ibrahim” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Sarry Ibrahim
Sarry Ibrahim graduated from Keller Graduate School of Management in Chicago, IL with a Masters Degree in Business Administration and a concentration in project management. He started his career at Allstate Insurance Company as a licensed advisor helping business owners protect their assets from various risks. He then became an independent Medicare broker and consultant representing large health insurance companies like Blue Cross Blue Shield, Humana, and Cigna Healthspring, where he helped retirees transition from their retirement plans to their own individual Medicare plans. During this time, Sarry noticed how many retirees were actually not in a good situation financially. He began helping his Medicare clients with post-retirement planning and estate planning. Since then, Sarry has grown his practice to help not only retirees but anyone looking to build a healthier financial future. While researching these financial products, Sarry noticed that many of these financial solutions have a unique and powerful benefit; asset protection. These financial solutions are protected from creditors and predators. Sarry wants to show real estate investors how they can protect their assets from creditors and predators using these powerful financial strategies.
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