E175 Bonus: Silicon Valley Bank vs. the Safety of Mutual Life Insurance Companies Now

In this episode, Nate discusses how Silicon Valley Bank collapsed, and he also answers the question, “Could something similar happen to mutual life insurance companies?” In addition, he’ll detail essential lessons for all of us to learn in light of the recent bank meltdowns.

Topics Discussed:

• Explanation of what caused Silicon Valley Bank and Signature Bank to fail, including the unique set of financial risks they faced
• How banks operate and how they invest deposits from customers
• Why banks and companies that stretch for yields are vulnerable to meltdowns, and the same can happen to individual investors
• How monitoring and regulation of banks and mutual life insurance companies contrast
• Comparison of mutual life insurance companies to other types of financial institutions, such as banks and credit unions.
• Understanding how Mutual life insurance companies are different and more resilient to economic upheavals
• Learn to evaluate the bank’s risk management strategies and policies
• Lessons on the liquidity of investments and financial positions and how to consider them as a power in financial planning
• Explanation of how becoming your own banker using dividend-paying whole life insurance policies with mutual life insurance companies is unlikely to face the same risks as traditional banks

Episode Resources:

• Gain access to our Beginner’s Course now FREE to listeners of the podcast here now
• What is Infinite Banking
• Who was Nelson Nash?
• CREDIT: Episode art background photo by Karsten Winegeart