Just finished my second go around with BYOB. Having a hard time wrapping my mind around the figures Nash is utilizing in purchasing your own equipment/financing the needs of life. Don’t get me wrong here. I get that my policy grows uninterrupted in the background. That’s not my hang up. In ‘Equipment Financing, Illustrations 1-5’, I’m not getting his math the second time around. Hypothetical, take out a $40,000 car loan. Just for the sake here, we will say I can get 7% at my credit union for 60 months. A policy loan would be roughly the same for arguement here. My basic understanding would be that from the credit union my payment would be $792/mo. To not steal the peas, I take a policy loan, and pay at least $792 back to my policy. Let’s call it $800. My hang up is this: How does Nash get to these tables (p 54, 59-64?) I’m paying back 7% to the life insurance company on the policy loan. Does this only work if I’m putting MORE than I would pay to my credit union into paying back my policy loan? (Say, $1,000/mo?) What did I miss in my two readings to make the numbers work the way he demonstrates?

Been listening for the better part of a year, and there have been a couple of conflicting points regarding mortgages as I have heard, and been since pondering, so thought I would throw it up here for discussion and see what sticks: - first point, is instead of paying down mortgage, resequence the money into a policy and build uninterrupted compounding there. Do not put a dime more into the mortgage. - The conflict would then be the 30 year mortgage, early on, the amortization schedule the first 5 years pays mostly interest. If you can pay more early on directly to principal, it takes off months on the length of the mortgage. So I think, a rule of thumb I kind of ended up with was this: on a 30 year, take your interest rate, and for that many years, double your principal. (Ie, a 6% mortgage, double your principal the first 6 years. A 2.5% mortgage, double your principal for the first 2 1/2 years of the mortgage.) After that term, divert the extra principal into your IBC policy. I have to run the numbers on this to see how it would play out, but it would seem to make both sides of the advice work. Curtail some of the interest later on, but then make your money work elsewhere as your mortgage gets more ‘efficient.’ Thoughts?

https://www.realtor.com/news/real-estate-news/senate-bill-merkley-down-payment-assistance-homeownership-promise-act/

Coming up on my first year with my first two policies open. Currently rereading BYOB, and trying to get a bit better about checking in here. Been listening to the podcast, trying to get educated. Now, I’m at the point in my process where I want to have discussions, and this looks like a great spot to start. To start with, I have considered myself an Austrian minded Libertarian for a while now. With my new job, received several cold calls from life insurance companies. (Lots of wasted time with one hour meetings…) As they say, the math just wasn’t mathing with what these young agents were saying. Stumbled upon IBC through a social media investing group at work…. Read Nash and the piece I was missing fell into place. Working on capitalizing my systems now, looking into how to slowly start utilizing how I’m resequencing my capital. Looking forward to the discussions here. ( @Paul Fugere and @David Befort really enjoy listening to your weekly podcast!)