Do you ever ask, Why do we use money or Why is Bank Owned Life Insurance on the Rise? The Lara Murphy Financial Reports detail and answer these questions and others like How do Mutual Funding companies really Work?
Time is Money and Money is Time? The Infinite Banking Concept was born to society with scholar evidence and research. Much of this evidence is based on research detailed in the Lara Murphy Reports
Do you want more Lara Murphy Reports? The LMR Greatest Hits are articles selected from past Lara-Murphy-Reports financial news letters that are still relevant and popular today.
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Why Do We Use Money? FROM MAY 2016 Although it’s a pretty basic question, it’s worth asking: Why do we use money? Once we think through the answer, it becomes clear just how awful our current monetary system is. For those wanting a comprehensive treatment, I refer you to our book (co-authored with Carlos), How Privatized Banking Really Works. I also refer you to our new podcast, the Lara-Murphy Show, and in particular episodes 15 and 16 where we discuss how governments historically have used inflation to cover their budget shortfalls. read more
Bank Owned Life Insurance Is On The Rise FROM MARCH 2016 First quarter 2016 numbers are just now closing, but analysts everywhere are still analyzing 2015 year-end results across all sectors of the global economy. The numbers don’t look too good. In fact they are downright anemic. However, there is one area that is remarkably robust. Bank owned life insurance (BOLI) assets and new purchases reached a new high of $156.2 billion in 2015, compared to $149.6 billion in 2014. Over 90% of this 4.4% increase in BOLI assets on the books held by commercial banks, savings banks and savings associations are in permanent cash value life insurance policies. For those unfamiliar with this terminology, that’s the kind of life insurance policy that covers you for the entirety of your life. read more
The Liquidity of the Life Insurance Industry FROM MAY 2016 Highly profitable companies can run into financial trouble if they don’t have the liquidity to react to unforeseen events. Even companies with a stockpile of assets on their balance sheets will struggle with cash flow issues when markets crash if those assets are illiquid. In a moment of crisis, assets are of no value if they cannot easily be converted to cash in order to save the company. read more
The Importance of Sound Thinking – an Interview with Nelson Nash FROM FEBRUARY 2016 R. Nelson Nash was born in Greensboro, GA in 1931, and married Mary Edwards Williams in 1952. Nash received a BS Degree in Forestry from the University of Georgia in 1952, and spent 30 years with the Army National Guard, where he earned Master Aviator Wings. In addition to being a Consulting Forester for 9 years in eastern North Carolina, Nash was a life insurance agent with Equitable of New York for 23 years (Hall of Fame member), and The Guardian Life for 12 years. Nash describes himself as the “discoverer and developer” of The Infinite Banking Concept (IBC). He explains his revelation and how IBC works in his classic book, Becoming Your Own Banker, of which more than 300,000 copies have sold. Nash is also the publisher of BANK NOTES, a quarterly newsletter. He lectures all over the United States and Canada teaching his book in ten-hour seminars, averaging 30 seminars per year. Nash is a passionate student of Austrian Economics, having started this pursuit 59 years ago. read more
In April of 1987 a newspaper ad ran in the Wall Street Journal with the following almost unbelievable bold headlines: “All Life Insurance Lets You Provide For Your Children—Ours Lets You Buy Toys Of Your Own.” This ad was so ostentatious in its message that it became Exhibit-A in a Senate Hearing before the Subcommittee on Taxation and Debt Management on March 25th, 1988. The final outcome of these proceedings led to a dramatic change in the Internal Revenue Code treatment of life insurance unmatched by any other since the industry’s inception. Now, it’s true that even our common sense tells us this advertisement is definitely talking about special benefits for the living, not the dead. So the ad does beg the question, “Is this really life insurance?” Furthermore, who can dispute that the ad itself is shameless, especially since Congress had just enacted the 1986 Tax Reform Act the year prior seemingly closing all of the tax “loopholes” of the wealthy. But it seemed that by overlooking this remaining favorable tax treatment enjoyed by traditional whole-life insurance, Congress had somehow “inadvertently made a generous gift to a small privileged segment of society.” read more
How Mutual Holding Companies Really Work A mutual insurance company is an insurer that is owned 100% by its policyholders. Policyholders in a mutual are “contractual creditors” of the assets of the company. This means that a policyholder has ownership, membership, and contractual rights vested to them by state law. When a mutual insurance company demutualizes it converts completely to a stock company owned by shareholders. When this happens it loses its mutuality. A mutual insurance holding company (MIHC) is something altogether different— it’s a hybrid of sorts. It is not fully a mutual because the insurance company actually becomes a stock company too, but because of the holding company feature, it is able to retain its mutuality. the policyholder’s ownership, membership, and contractual rights are all still there in the MIHC structure, but they are now separated within the new “split” company. read more
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