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Changes to IRC Section 7702
& What to Expect Going into 2021...

There is No Doubt That 2020 Was a Year of Change.

Despite the pandemic in the air- the world, politics, and businesses continued with their endeavors. Many worlds were
flipped including, the world of Vortex Banking with Infinite Wealth Strategist.

On December 27, Trump signed the Consolidated Appropriations Act of 2021, which Congress had previously passed in
late December. This act, in turn, signed in a new era for Infinite Wealth Strategist and their Comprehensive Vortex Bank-
ing Strategies.

However, the question that arises is that did this adjustment send the world of Vortex Banking' into a world of darkness
or enlightening brightness.

To understand this change, we'll have to navigate through all the in's and out's of 'Vortex Banking.

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Having the Right Team Makes
the Biggest Difference.

What Exactly Is Vortex Banking
and What Are the Benefits?

As the name implies- 'Vortex Banking' is a privatized banking strat-
egy that accelerates your ability to acquire wealth in a fraction of
the time. (and hold onto it) At the very center of these wealth
building strategies lies a highly sophisticated, unique form of Per-
manent Whole Life Insurance.

Now you may be confused as to HOW insurances and wealth are
inter-related. Let's just assume that these highly sophisticated pol-
icies are designed specifically to warehouse cash in an environ-
ment where each dollar deposited with go on to earn you addition-
al dollars the remainder of your life.

Why Not Create Your Own Banking System?

Hence, these policies are constructed in such a way that ordinary insurance is methodically converted into an extra-or-
dinary type of financial vehicle, which leads to an automatic generation of money. All of this is what adorns 'Vortex
Banking' with a plethora of additional benefits.

First: It is possible to grow your annual contributions by an annual guaranteed rate (Historically 2-4%, + Potential Divi-
dends of 5%).

Second: Capital Preservation can be done without the fear of risking principle. This means that any uncertainties in the
market will not affect your cash value- even if the economy goes into recession or completely crashes.

Third: With no questions or inquiries done- you can open a personal or family bank with quick-access loans for any
reason, while setting your own terms (if any terms at all).

This allows you a unique opportunity to recapture tens, if not hundreds of thousands of dollars in 3rd party interest that
you are currently just handing over to Greedy Wall Street Bankers!

Moreover, it is a tax-free incentive.

With all these bonus benefits, you can easily access your money whenever you want without fear of penalty or inter-
rupting the growth of your Vortex Bank!

What's most exciting about these Wealth Building Principles is that you don't have to be rich to take advantage of the
Vortex Banking Strategies, just lucky enough to have been introduced and properly taught how to apply these strategies
to your current financial profile.

'A Tax Shelter for The Rich' is
what it was deemed by- the
esteemed Wall Street Journal.

Let's rephrase that, for it was once called that before Whole
Life Insurance nearly went extinct after interest rates
consistently ran low. Which, in turn, would lead to a major
component of the Infinite Wealth Strategist, Vortex Banking
Strategies to become inefficient, outdated and flat
out obsolete.

Section 7702 of the Internal Revenue Code nearly destroyed
these Wealth Building Gems, that have historically been
used for generations over the last 120 years in American
Finance. In fact it was these type of highly sophisticated pol-
icies that have been credited for the rise of household
names such as Walt Disney, Ronald McDonald, Sears, and
countless others.

Look, our job at Infinite Wealth Strategist is to simply share
and educate and with doing so, it's our responsibility to
shed some light as to who exactly is using these type of
policies in their own wealth building strategies. For instance,
we could clearly see that Joe Biden owns multiple policies in
his financial disclosures to become the President of the
United States.

The truth is, most of our politicians along with the Countries
Wealthiest Inhabitants are all taking advantage of these
highly sophisticated secrets.

So, it was no surprise to us that during the final hours of the
Trump Administration, Congress overwhelmingly passed the
spending bill that saved the day! (Woohoo…)

To really understand why we are jumping for JOY and
Screaming "Wahoo" in the background, let's take a
trip down memory lane...

During the 1980s, a few "financial guru's" identified a way to leverage the tax perks associated with 'Permanent Life
Insurance' in order to better service their wealthy clients. Basically , they found a loophole hidden away within an insur-
ance product.

Here's how it would go- people would purchase permanent life insurance policies with a low death benefit and would
then proceed to 'overfund' and overly endow it with special policy riders. Advisors, quickly caught on that they could;
stuff a bunch of money into these policies, capitalize on the growth and then later access the money through policy
loans, effectively and deliberately sidestepping the burden of TAXATION.

What do Governments do when they realize that the
wealthy have side stepped taxation?

They introduce or update tax codes!

Congress introduced section 7702, specifically to discourage overly-prosperous clients from further avoiding taxation.

Section 7702 essentially put limitations as to how much money an individual could stuff into a permanent whole life
policy while maintaining the tax benefits of the insurance product itself.

If an individual overfunds the policy and surpasses this "imaginary" tax line than the policy would be deemed a Modi-
fied Endowment Contract (MEC) and all tax benefits would be forfeited.

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What's peculiar about 7702 is how they determined the
MEC limit in the first place.

The law used a test based on the policy to define a guaranteed interest rate to be paid out, which mysterious landed at
4% and has since been hard coded as the guaranteed rate on every policy written across the country.

This, of course, was not an issue back when high-interest rates were the norm the '80s, '90s, and even the early 2000s.

However, interest rates have fallen over the last couple of decades, rendering it difficult for insurance carriers to offer
competitive cash-value products to the consumer.

In order to really appreciate the good news we should
provide a little insight as to how the insurance carriers
make money in the first place…

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Obviously, insurance carriers are driven by profits, however let's
switch it up a bit. In this scenario let's flip the script and pretend
that you yourself own the company and are trying to figure out
ways to turn a profit and keep the doors open.

The first source of revenue would obviously come in the form of
premium from policyholders. When these premium dollars arrive,
the carrier holds on to them until they have to pay out a claim
(death benefit) to the beneficiaries when someone passes.

Do all premium dollars hold the same value to the carrier?

Let's take a closer look at the difference between premium dollars coming in from Term Insurance Vs. Permanent
Whole Life Insurance.

Statistically, it's reported that 90% of ALL Term Policies go on to expire or lapse with NO death benefit ever being paid
out to the policy holder. SO, though Term insurance is appetizing to the consumer and to the likes of Dave Ramsey,
statistically, it's nothing more than another expense to add to your families monthly budget. To the carrier,
these premiums turn out to be quite lucrative and go on to play a much larger role in the grand scheme of things.

Moving along...

When it comes to 'Whole Life Policy,' policy holders are guaranteed a payout, as long as they keep paying the premi-
ums. Hence, there is no expiry date of the policy. Since there is no way for insurance companies to avoid paying out the
death benefit at some point, they have no choice but to invest premiums over the lifetime of the policyholder, with
hopes that they can accumulate more money from the investments than what they will have to payout.

Over the course of the last century the most reliable and highly preferred way among these carriers is to invest in
high-grade bonds, such as the U.S treasuries. If you're thinking long term is there really anything else as safe and
secure? When you think about it, accumulating 8-9% payouts annually from these bonds while only paying out about
4% to whole life policy owners- is highly beneficial.

SO, where's the problem?

High paying Treasury bonds have come to be nearly non existent. In fact, as recently as a couple months ago 30 year
Treasury bonds dipped below 2%.

Let's break this down into Layman's terms to see if we can procure a bit of clarity.

1. Insurance carriers have historically purchased high paying 30 year Treasury Bonds. (8-9%)

2. These High paying Treasury bonds are now coming to the end of their term and expiring.

3. Current 30 year Treasury bonds are no longer high paying in the slightest (3-4%).

4. Insurance carriers are still required by law to grantee 4% to their policy holders.

The center of the problem is that interest rates have been on the decline for the last decade plus and as a result Insur-
ance carriers have had to replace high-paying Treasury bonds with lower paying Treasury bonds, while bound by law to
grantee 4% to their policy holders.

As you can guess - gaining only 2% while guaranteeing 4% is a sure fire way to go bankrupt.

How IRS Section 7702 Was Changed…

The Consolidated Appropriations Act, that Congress passed going into 2021 consisted of nearly 6,000 pages. Hidden
deep-within this massive piece of literature were historic changes to IRC Section 7702. Bear in mind that this particular
section of the code had not once been altered since its construct in the 1980s (A big deal indeed!)

All these jargons have probably clouded over your mind with no real picture in mind. Therefore let's rewind.

IRC section 7702 is the part of the code that determines the premium limits for life insurance policies before they con-
vert into a MEC (Modified Endowment Contract).

Now, in simple terms, what exactly is this change? Well, instead of guaranteeing a 4% MEC limit, the MEC test is now
determined by the floating rate relative to the Prime rate. Very similar to the calculation of interest rates.

How the Modified IRS Section 7702 Affects Whole
Life Insurance…

Change is a gradual process, and therefore we must be patient as insurance companies update their offered policies
and products. 2021 will be the year that these changes take their place in the 'Whole Life Insurance' era.

permanentLifeInsuranceImg

'A Boom for Permanent Life Insurance'
is what this change has been
interpreted as by the Wall Street Journal.

More cash being invested into the Whole Life Policy with less
death benefit is a plus when you are cast with lower interest
rates.

However, there is always an opportunity cost. Therefore, let's flip
the coin and look at both sides- the good and the bad.

Two Major Effects on Vortex Banking Explained…

The Good News:

These changes will allow us to assign more premium toward the banking portion of these permanent whole life poli-
cies. (the whole point in the first place)

This also paves the way for individuals that want to build up cash value fast, role dead assets into the mix and further-
more opens the door for individuals at every income level to take full advantage of the Vortex Banking Strategy.

What's the next step for you…

This is your time to take advantage of smaller policies to start 'Vortex Banking' by filling them with as much cash as
possible, without triggering a taxable event. (MEC) The not so Good but not entirely

The NOT so Good but NOT entirely Bad, Bad news:

The negative aspect of Whole Life Policies' future is that their cash value growth will be closely connected to their un-
predictable and fluctuating dividend scale.

This sequentially means that you will receive a lower guaranteed rate going into the future. With that being said, carri-
ers will do as they have done for centuries and adapt, leverage and deliver their own competitive policies in order to
stay relevant in the market.

Taking this whole scenario into consideration- there are two points of action you can take right here right now.

First, you can get started right away- before this change is implemented. This will ensure that you can lock in the higher
guaranteed rates.

Second, you could wait for this change to be implemented and could wait for the new product offers to see what is
most beneficial in the long term. This action route is advised if you are more interested in the lower premiums or want
to maximize how much you can fully front-load your policy.

The bottom line is still that the sooner you start Vortex Banking, the better!

And while you start that journey, I'm sure you'd appreciate all the advice and guidance on the 'Vortex Banking
Strategies' that you can get.

Therefore, if protecting and growing your wealth is of great interest to you, make sure you schedule a free one on one
strategy session with one of our Infinite Wealth Strategist. (they will never ask for your credit card or any form of
payment direct!)

We look forward to talking with you soon.
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