Dave says: Should you borrow your own money? – The Advocate-Messenger

Dear Dave,

I have a question about auto-banking with term life insurance. From what I understand, you can build up a cash balance, borrow on it, and then pay yourself interest. Is it worth it, or do I have to stay away and continue to use a bank?


Dear Kunal,

In fact, it is a whole life insurance policy, not a term insurance policy. And this is an absolute scam.

Basically, with a whole life you pay about 20 times more for the same amount of insurance than with a term policy. The extra money goes into a savings account, and you earn next to nothing, even after you finally start building it. One of the ways they are presenting it now is the concept of auto-banking, where you can use your own money. It’s nothing magical or anything, because with a regular checking account you are using your own money.

My advice is to stay away from the company offering it and anything else they have. It’s a really bad product, and it’s a terrible way to sell whole life insurance – which is a horrible product to begin with. No one, except the people in this company, believes or talks about it more positively.

Being able to borrow your own money? Is that so? Why the hell would anyone borrow their own money? It’s ridiculous!


Should I Tithe on My Business?

Dear Dave,

My wife and I are Christians and we have a successful small business in our town. Do companies have to tithe?


Dear Barker,

It’s a good question. Giving is never a bad idea, unless you do so irresponsibly and to the point of putting your family in financial jeopardy. As far as I know, the Bible only addresses the subject of tithing by individuals – not businesses.

Personally, I don’t give a tenth of my gross or net sales until I receive my paycheck. When this happens, that is, on the profits that I will pay taxes on or the wage income of my business, I tithe on the profits.

So, I can’t really tell you that I found Bible instructions for giving a tenth of your stuff. Hope this helps you!


* Dave Ramsey is a seven-time national bestselling author, personal finance expert and host of The Ramsey Show, heard by over 18 million listeners every week. He has appeared on Good Morning America, CBS This Morning, Today Show, Fox News, CNN, Fox Business, and many more. Since 1992 Dave has been helping people take back control of their money, build wealth and improve their lives. He is also CEO of Ramsey Solutions.

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