BankNotes – December 2012

The team of Carlos Lara, Dr. Robert Murphy, David Stearns and I are well on the way to completing an innovative new training program for the financial services industry professional. We will unveil this program at this year’s annual Think Tank Symposium in February.

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BankNotes – November 2012

Divisible Surplus. What is it? Where does it come from? Why is it so relevant in the structure of a mutual life insurance company? Who determines when and how it is to be divided? Even more importantly, how do the insurer, the government regulator, the agent and the policy owner see, or how should they see, its importance from their particular points of view?

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BankNotes – October 2012

Sabina (Bina) West Miller (1867–1954) is proof that one person can change the world. She saw a social injustice and corrected it through hard work, entrepreneurship, and good will. In the process she broke through one of the strongest cultural barriers in history: bias against women.

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BankNotes – September 2012

In approaching this subject I need to admit right now that I am biased. But in order to be equitable with my stance, it is best to evaluate the facts about these institutions against the context of a broader sphere that takes into account historical evidence matched with our current economic, social and moral climate. In the end, it is the head of a household or an entrepreneur heading up a business enterprise who must ultimately make use of these institutions to navigate the uncertain future.

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BankNotes – August 2012

It is the strangest dysmorphic transformation of any holiday in history. The day that overthrew a government, July 4, 1776, now celebrates the power of a government that is far more vast, predatory and imperialist than the one overthrown. Not only is the real meaning of Independence Day forgotten; it has been turned on its head.

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BankNotes – July 2012

There are many by ways in which human beings have created means of exchange (currency, means of payment, money) that have worked successfully over long periods of time. There is the way that Menger explained, through discovery of a highly marketable commodity. This is the way in which precious metals gained ascendancy. Another way is through banks that have intermediated short-term (90-day) bills of exchange and provided bank notes.

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BankNotes – June 2012

One of the nicest features of whole life insurance is the ability of a policyholder to “get at his money” during the entire life of the policy, as opposed to taxqualified investment vehicles that typically assess severe penalties for early withdrawals. Specifically, the whole life owner can take out a policy loan, gaining the use of his cash value, at any time. It is through taking out (and paying back!) policy loans that a person can use a whole life policy for “banking” purposes.

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BankNotes – May 2012

Insurance companies have put numerous pages on the front of Equity Indexed Universal Life (EIUL) illustrations that describe the issues below, but most people (by design) will not take the time to read and understand what these pages are saying. I would encourage you to read those pages thoroughly before depending on an EIUL policy to increase your assets or protect your family. Similarly, Universal Life (UL) and its cousin Variable Universal Life (VUL) have some of the same problems so I’ve spelled out the issues below and placed an * next to the ones that are specific only to EIUL.

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BankNotes – April 2012

Hands down, the biggest stumbling block to spreading the “good news” of Nelson Nash’s Infinite Banking Concept (IBC) is that it relies on acquiring whole life insurance policies. As “everybody knows,” only a fool would take out such a policy—just ask Dave Ramsey! The financial gurus tell us with confidence that an individual does much better to “buy term and invest the difference.” In the present article I’ll point out some of the flaws with this standard objection to whole life (and by implication, IBC).

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