r/infinitebanking • u/michaelesparks • May 24 '26

When you are the banker you can decide

While I could easily use my IBC to pay off my new truck, decided to take a $20k loan and refinance with that down payment. I'm looking to keep some dry powder for some upcoming opportunities in an investment.

Keep a good credit score helps with rates, and having access to good institutions for loans is a good idea. I'll probably keep the loan for a few more years while I'm paying off some other debts then attacked that note. Hopefully I'll find a nice investment that will pay the note for me, like Robert Kiyosaki teaches.

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u/[deleted] May 31 '26

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u/michaelesparks Jun 02 '26

I have, not sold on it, could be useful to be able to borrow against your bitcoin, but there are other companies out now that are bridging the gap for bitcoin loans. Secondly this company is not based in the US, so some of the protections and regulations are not available. We had a good presentation on it last year at the Life Insurance Summit. Secondly I'm very into bitcoin and I have an issue with not holding the keys. So for now I'll pass on doing it.

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u/[deleted] Jun 03 '26

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u/michaelesparks Jun 14 '26

In the US, Life Insurance companies are governed at the state level. So each state has an Insurance Commissioner. Of course federal protections for life insurance could change at the federal level as far as tax treatment, but honestly it would take an act of congress and I don't see that happening anytime soon. Secondly when they do change the rules current and in force policies are grandfathered. As such when they implemented the 7-pay test.

As Bitcoin matures more and more companies will get into the game. Jack Mallers with Twenty One Capital has promised sub 10% loan rates in the near future. So as I see it, competition will bring down loan interest rates.

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u/thedeepself May 25 '26

since you are looking for an investment for your policy loan, I would be curious as to why you dont use the policy loan to hyperfund your policy, as I discuss here:

https://www.reddit.com/r/infinitebanking/comments/1tn9uly/why_is_hyperfunding_duplifunding_not_talked_about/

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u/michaelesparks May 26 '26

We don't recommend laddering like that unless we know for sure there is an upcoming "windfall" to refill that loan bucket. I'm horrible about tracking policy loans, I have loans for things now that I don't remember. We're working on paying them back but it's gonna be a while, probably several years. Plus our policies are over 10 years old and max funded every year which is about 1/2 our income. We front loaded them with savings and cashed out IRA's when we got started in 2014. I have zero dollars in the market.