What is “The Babylonian Money Code: The 3,800-Year Proven Secret to a Tax-Free Fortune?”

Checking in on the Palm Beach Letter's favorite pitch idea -- now also called the asset "stolen by Hitler" and "banned by Caesar", this is still what Palm Beach used to call the "770 Account"

By Travis Johnson, Stock Gumshoe, February 24, 2015

This was originally published on January 21, 2015.

Man, I’m starting to have trouble keeping up with all this. The folks at the Palm Beach Letter are so enamored of their “outside the stock market” investment idea that they change the name of it every few months. Whether they’re just testing out which term most appeals to potential subscribers, or because they’re ardently trying to keep their “secret” I don’t know.

But we can, at least, keep telling you what it is they’re actually talking about — whether it’s the “Babylonian Money Code” or the “President’s Private Account” or the “Invisible Retirement Fund” or the “770 Account.”

Yes, those are all the same thing. This is how the latest ad from Palm Beach describes the “Babylonian Money Code”:

“Outlawed by Caesar before the birth of Christ…

“Banned in France in 1681…

“Stolen by Hitler during World War II

“What you are about to discover is the tale of an asset so controversial… so coveted… that it is still cloaked in mystery today.

“Modern pundits scorn it… the rich love it… government all but censors it….”

Sound familiar? It’s a great story — Mark Ford hasn’t lost his ability to teach the next generation of copywriters how to pitch an idea and make it sound fantastic. Here’s a bit more, just to give you a taste:

“The individuals who possess it-even those who have stumbled onto it-see their wealth and their fortunes flourish.

“But it’s not a tale of gold, silver, stocks, bonds, or real estate…

“And its roots go much deeper than bitcoin or any of the latest financial inventions.

“No… The secret we’re going to uncover today traces its roots all the way back to the dawn of recorded history. To an ancient code written more than 3,800 years ago…

“And even though this asset appears 500 years before the Ten Commandments, it’s been scorned throughout much of history….

“In the 19th century, the Church called it ‘a speculation repugnant to the law of God and man’…

“But despite these obstacles, many of the world’s elite have long sworn by its power.”

So there’s plenty of intrigue — and the implication that this asset class has its roots in the Code of Hammurabi and the “first Wall Street” of ancient Babylon. More…

“In fact, scholars today believe this code unlocks a secret that’s made people wealthy for nearly 4,000 years…

“It’s the source of an investment formula rooted in the twin pillars of safety and prosperity-which made the Babylonians so wealthy.

“Some researchers refer to this method as the Babylonian Money Code-in honor of Hammurabi’s own text.

“For the past four millennia, it has quietly protected and grown personal fortunes.”

And yes, “some researchers” likely means “the people at Palm Beach Letter.” Though yes, it is true that scholars credit either the ancient Babylonians or Chinese traders with the invention of what we would call insurance (depending on who you ask)… and this is a kind of insurance that Tom Dyson and the Palm Beach folks are talking about. Though it’s not the kind of insurance Hammurabi would have been interested in — which was mostly insuring trade and shipborne goods — it’s life insurance.

Have we lost you yet?

Yes, the “Babylonian Money Code” is Tom Dyson and the Palm Beach Letter‘s most recent made-up phrase to describe the “Bank on Yourself” or “Infinite Banking” system — which is essentially a system that has individuals buy up participating whole life insurance through mutual insurance companies, maximizing the cash value through “paid up additions” or other means and maximizing the potential dividends from the insurance company, and borrowing against that cash value for life’s needs in the future while finally, in the end, passing the assets along to their beneficiaries in the form of the tax-free death benefit.

We’ve had many discussions of this system over the last year or two that Dyson has been touting it, so I won’t rehash the chatter for you — here’s my quick take on the many back-and-forth discussions that readers have had:

The arguments in favor are that (once the cash value has built up) you can create your own “bank” and borrow from your insurance policy to buy a car or start a business or send a kid through college; that mutual insurance companies have historically paid nice dividends to participating policyholders that can build up the cash value substantially over decades; and that the gains in the end are tax-free and eventually create a steady mid-single-digit “safe” return on savings that compounds the ultimate value of the policy.

The arguments against are that it takes ten years or so (that’s an average number I’ve heard, not a promise) before the cash value of whole life insurance starts to work for you (and not for the insurance agent), since commissions are front-loaded; that it requires discipline because you can lose the asset or the tax benefits if you don’t keep up your payments or repay your loans; and that the whole system is complex and opaque and non-standardized, so it can be very hard for consumers to set it up properly or to compare whole life plans across companies or providers, let alone the more complex riders that maximize the value of “bank on yourself” (or “770 account” or “Babylonian Money Code”) plans.

So if you’d like to chat about all of this again, feel free — or you can revisit our past articles on the subject, you can find our look at the 770 Account / President’s Account here from about 18 months ago, and our more recent piece about the Invisible Retirement Fund here.


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63 Comments on "What is “The Babylonian Money Code: The 3,800-Year Proven Secret to a Tax-Free Fortune?”"

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Fake Dan Brown
Guest
0
Fake Dan Brown

I think I can write at least two novels with the premise promised in the teaser. Robert Langdon, I’m gonna need you once again.

Real Truth Seeker
Guest
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Real Truth Seeker
Well I can tell you right now who benefits from this short term. 1. The seller of the newsletter. 2. The insurance companies. 10-15 years to start making money seriously! Imagine what you could do if you took the news letter payments and put them into a solid investment and then reinvested the profits over and over for 10-15 years! You would have a huge account on your own without paying a guy to get rich selling you the information, or the insurance companies. I can almost guarantee the insurance industry came up with this having done the math showing… Read more »
Ron Waldron
Guest
0

“The liar clubs always get sold out by the hierarchy when their done using them for the dirty work.”
You might consider using the contraction ‘they’re instead of the possessive ‘their’ in your above quoted sentence….. But thanks for the critical review, it is informative.
Saved me $49.00.

fred
Guest
0
fred
“Real Truth” makes plenty of sense and instead of picking apart the grammar/spelling you should be directing the readers to the main fact regarding whole life insurance. ie: “anybody who desires to purchase a “whole life policy” requires an unbroken stream of income to finance the policy if they ever hope to benefit.” That means monthly premiums must be paid when due! If not, the cash value of the policy dwindles faster than a stalk of corn/wheat in a prairie drought. The average Babylonian (meaning not part of the rich entitled governing class who were guaranteed an income and pension)… Read more »
dee
Guest
0
You omitted mentioning the Real Estate Sales person – who is a major beneficiary from the sale of this bogus investment to uneducated consumers. The reason it takes 10 to 20 years before it starts to break even is that is how long it takes to compensate the insured for the heavy commission paid out in the early years to the Agents – which can often be 67% to 120% of the first 2 years premiums. Some Sales Agents have gone to jail for selling 20 year pay off policies as 10 year – and a major Australian Life Office… Read more »
Patrick
Guest
0

will this give details l ,on how to get started in a #770 Account. I have inquired to mutual ins co ,and nothing

Terry Carey
Guest
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Terry Carey

I certainly can help you fund one of these plans Patrick through a variety of companies.

tomtom73
Member
1
tomtom73

What a dead horse flogging idea. No one buys whole life anymore, at least the friends & family I know. Term life is the way to go when you have marriage & family responsibilities to cover should you die. Drop it when the kids are grown, you are older and have saved enough to retire. Some term plans via your job even switch to a paid up lifetime plan at age 65, but have no cash value to borrow against.

Josie
Guest
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Josie

Yes. I am a member and they give you the information you need to get started.

rusty_h
Member
7
rusty_h

Do you mean you’re a Palm Beach member? How much have you banked so far?

Conn Huskies
Guest
0
Conn Huskies

I have been in the insurance bus. over 25 years, and dispute you statement.
Term insurance is only good if you have whole life with it. Whole life is good for your whole life. You can sell your policy when you don’t want it or don’t need it. With term ins. , the term policy usually dies before you do. Most common term is 20 year term. You will have paid premium for 20 years, and you get nothing beyond that.
You are looking at a cheap way out for protection, not the logical choice.

Laurencio
Guest
0
Laurencio
Term life insurance is a product for people who want protection at an affordable price, it has nothing to do with investing, the whole thing about buying term at an affordable price and invest money in something like stocks, well, its all design to keep you chasing a carrot, dangled in front of you. Truth is, if you have money to invest, and understand how “Whole life” works, why buy something cheap, and then invest in an unsafe product like Stocks? Whole life is a good way to invest, if you have the money to invest, and don’t want do… Read more »
dee
Guest
0
Term is straight life cover at the lowest cost – If you want Insurance it is the best way to go. WOL is not an investment – it is overpriced life cover with a pittance of a return that make it a pseudo investment. If you want an investment that pays – which you do not have to wait for 10 to 20 years before breaking even do not buy WOL or Endowment Plans – You can buy a vary of alternative real investments – starting with Real Estate, Stocks or if you want to invest via a Life Office… Read more »
Gary
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Gary

Cash value can be built up in the first year if the plan is written the right way. it involves cutting the agent commission and putting money toward cash value through paid up additions. It is actually cheaper than term in the long run because the longer you have the policy the more cash you accumulate. The cash value can be more than the premium you pay.

Big Dan
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Big Dan

Are you kidding!!! I was an agent for over 5 yrs. I left the industry because I was expected to sell whole life. It cost 10 -20 times term when it is really needed (young families) for protection of those you might leave behind. Can you imagine buying any other insurance, such as homeowners, that way? Pay 10 times as much and your premiums will never go up. Rubbish!

Allan
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Allan

David Chilton: The Wealthy Barber: Pay yourself. Same thing.

Denny
Irregular
40

Ditto what tomtom73 stated.

Edgar Arceo
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Edgar Arceo
Good review in general, but there a few things that are not 100% right. Arguments against getting this account: First argument: “it takes ten years or so (that’s an average number I’ve heard, not a promise) before the cash value of whole life insurance starts to work for you (and not for the insurance agent).” – if it is structured correctly, it should take from 4 to 8 years; that is depending on your age/health and contribution amount per year. After that, the rate of return will be around 5-6% tax-free. Second Argument: “that it requires discipline because you can… Read more »
rusty_h
Member
7
rusty_h

Is there no spam button on this website? I’m new.

Also: is 7. vivian accurate in her description of Arceo’s website? Troublesome implications.

rusty_h
Member
7
rusty_h

Been to the website (main page only) I found no glaring disrespectful content.
In our ‘phobic’ society it’s easy to jump.

I’m retired, not meeting the criteria to benefit, so have no standing to + or – the website.

cpains01
Irregular
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cpains01

Great reply, does Edgar ever hear about Judas?

Jeff
Guest
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Jeff
Yes, These plans are very hard to compare. A case in point my son’s grandfather paid into one of these plans soon after he was born. When he passed on my wife and I maintained the plan. Except for recession years where we had to add to the seed the plan earnings maintain the plans and grow, a little bit better than inflation. When my son began working (about 16-yr later) I started funding a little bit into IRAs for him about $500 based on his wages. When he went into the military and did Iraq and Afghanistan ( no… Read more »
dee
Guest
0

Lol – Edgar Arceo you are a load of crap pushing your own wheel barrow – openly attempting to mislead and defraud the public. You should go to jail for your comments!!

vivian lewis
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vivian lewis
Edgar Arceo sells mutual life insurance. Is he cheaper or fairer to policy holders than others? No way to know. I am not sure if he is a real reader of stockgumshoe or merely someone who spotted that his business is being discussed. I visited the site and all I can say is that it is full of New Testament quotations, presumably to make up for the odor of sulphur about the whole whole life business as cited by Travis in his current write-up. If you are Jewish or Muslim or atheist you might feel unwelcome with all those bits… Read more »
har
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har

Vivian, exactly, brilliant. If you want to invoke religion to justify being greedy, mysogynistic and somewhat likely to kill innocent people to get the 72 virgins and everlasting orgasm, you’re not an insurance agent I’d deal with.
It’s my first post, and I need to learn about investing (I have none), but the site has no equal, as far as I can tell, and the cumulative brilliance, insight of people that comment is outrageous.
Next, i’ll look for a primer on what this ‘stock’ thing’s about…….buying puts?
Thank you everyone/longer days/we exist Har

Edgar Arceo
Guest
0
Yes, I consider my business a Christian Ministry – that doesn’t mean I will just help Christians, but I help people with a christian perspective. Now, If I said something wrong, then tell everyone here what was wrong; but if the things I said are right, why do you judge me as a greedier or a scam artist? I posted this in another feed, and I want to post it again: If you are thinking about doing this, make sure you are getting the best policy for you. It is a big commitment – be wise! Here are some pointers:… Read more »
Nano
Guest
0

With so many insurance salespeople going for the maximum commission, this is why whole life was pushed almost exclusives for decades, so the advice given is spot on, so perhaps some insurance people are ethical to the maximum allowed by the companies they work for, but like many, they do not do their due diligence when choosing a proper plan. The tips provided are good ones, so thank you,

Sandy Shore
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Sandy Shore

It’s true…whole life is like a religion!

sagenot
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sagenot

Travis doesn’t have life insurance Vivian, where does he say that? Convertible term or Universal life automatically lowers the agents commission, I was both a customer & vendor later on. Sulphur odor is a bit dramatic, even for you my dear.

ggswift
Irregular
33
ggswift

Perhaps best to place your money into one of the BEST Dividend stocks of all time MO , and just let it ride. No complicated nonsense!

quincy adams
Guest
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quincy adams

I think “Babylon” might be a typo…for Mr. Dyson, it seems to be the “Babble-on” code.

FREE
Guest
0

Funny, took the words right out of my mouth as I had listened to this babble on. lol

alice
Guest
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alice
I applied for this 770 account, “bank on yourself” plan last year. I went through a medical exam, blood test, urinalysis and went thru all my medical histories. The insurance company stopped evaluating my application since my medical records seem to be incomplete. I have a heart murmur since I was a child. This probably bothered the underwriters. They want me to go thru an ultra sound testing of the heart, with me footing the bill. So I told my agent, never mind. I am just going to invest in my ROTH. Withdrawals are tax free after 701/2 and could… Read more »
Ron Waldron
Guest
0

Agreed Alice,
And if you use a self-directed ROTH investment fund, you can invest in stocks, bonds, etc. A few years back I converted a 401K to a self-directed ROTH at TD Ameritrade and its given me a steady 78% return invested in only 4 solid stocks.

Michelle Bye
Guest
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Michelle Bye

Ron please share! What are your 4 solid stocks??

C.K.
Guest
0

Hey Travis, great job on an old idea. I know this strays off of this subject, but any new info on another oldie…hopto? Thanks…

C.K.
Guest
0

Hopto has just had a run up these last few days. Any news as to why?

Fred
Guest
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Fred
For the most part ,as I see it, Life Insurance is for protection not an investment vehicle. You buy insurance to provide the funds in early years to provide what you haven’t yet been able to save to provide for family in case of your death. It can also be used to protect what you have saved later in life from estate tax issues if you don’t want the tax man dipping into inheritance you leave. Iam a former Life Insurance Agent and believe in buying term life and investing the rest. Whole life premium are much larger than Term… Read more »
saybrook5
Member
1
saybrook5
Whole Life is an old product. There are much better products out there today, such as universal life. FYI if you go to an agent and he submits an application walk out. In full disclosure I am an underwriter working for an agent. It takes 3-6 months to place a policy. We do not subject clients to an insurance exam until we have multiple offers from insurance companies. We do this for a $500,000 twenty year term policy or a $10,000,000 universal life policy. Make sure YOU get the best rate no matter where you shop. Don’t accept that you… Read more »
Lee Larson
Guest
0
Lee Larson

Listen to the spiel until you’re bored. Try to exit from the site. A window will appear asking you to stay on that same page. Tap on that and see the text of what you’ve listening to. Scroll down to the bottom and you’ll see that this is another ‘subscribe with me and get rich’ plan. Thanks anyway.

Moffated
Guest
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Moffated
Travis, have you taken a crack at “Income Extermination”? The Palm Beach folks also touted Teeka Tiwari’s “Income Extermination”, which was to happen on June 17, 2014. That date came and went without the occurrence of the predicted event, so the date changed to September 17, 2014. Again, the predicted event didn’t occur so it’s been rescheduled to March 17, 2015. The Palm Beach stuff is so tiresome that I’ve unsubscribed to it. Mark Ford sits on his high horse with his plus $50 million wealth that gives him all the answers to any issue you face, such as whether… Read more »
Mike
Guest
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Mike

Palm Beach Letter? Hey where’s my little umbrella in that ‘Lie’…bation? Should be called the B.S. Chute Sheet. Every man knows the value of his own fertilizer? When you can’t get a license to sell stocks and bonds and the Fed Things dreams are made of, sell subscriptions. These people should get a reservation on the first flight of the ‘X’ rocket to Mars. BOL

Mike
Guest
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Mike

Moderation of what, Palm Beach nonsense?

Leslie Delahay
Guest
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Leslie Delahay

In 1949 I purchased a $25000 whole life policy. Today the dividend accumulation is
about $275,000.00. This dividend accumulation has grown in large measure because of the compounding of the 6% interest that I receive on the dividends. The policy is now “paid-up” so that total value upon my death is about $300.000. I continue to receive 6% interest on my accumulated dividends.

Edgar Arceo
Guest
0

Thank you Leslie for your comment. That is a nice testimony that this works – more because you get an “uninterrupted” compound interest in your policy – something you don’t get with mutual funds, etc. And by the way – with a better policy structure, your policy would have received a lot more dividends and death benefit – but a 6% interest (tax-free) on your accumulated dividends is phenomenal! Congratulations!

martin
Guest
0
martin

That’s not a great return. It’s about 10:1.
You barely managed to stay ahead of inflation if at all.
Some may argue that you lost purchasing power.
Look at the price of gold in 1949 and look at it now..
I’d prefer to buy gold and real estate.

morebroker
Guest
0
morebroker
So I understand, are you saying that the payout on your death is $300,000, or that you could cash out now with $300,000 ? And I guess how much did you invest all those years? At a glance I don’t think we have enough information to determine if this was a wonderful investment. For example, last night I saw a presentation regarding the Templeton Growth Fund, where a $10,000 investment in 1954 is worth over $8,000,000 today – this may be in Canadian funds, not sure – but the fact remains that we need more information as there is more… Read more »
Laura L. Smith
Guest
0

I got the Palm Beach Research Groups “Babylonian Money Secret” email and I am glad I read this article. I don’t waste my money on buying that type of money method hype stuff anyway. Myself, I believe in offering a useful upfront product that people can use right away instead of stringing them alone with fancy long direct copy.

jsav419
Member
6
As a wholesaler of Indexed Universal Life, I can attest that the claims and “theory” about the tax-free retirement are correct. I personally own an IUL policy and have seen double digit returns the past few years. The key to success is having a positive arbitrage between the loan rate and the interest credited. Edgar is correct in that there are SEVERAL ways to structure these policies. I did mine so that I built cash value starting day 1, but this required commission being spread out over a 5 year period instead of traditional lump sum. Also, you need to… Read more »
Socrates
Guest
0
Socrates
Leslie, If you had taken the monthly or annual premiums you were paying for your $25,000 whole life policy from 1949 to present and put it into Coca Cola or Pepsi stock, You would probably have over 5, 10, 20 million dollars…pick your number, not $275,000. The Insurance company has taken your premiums and invested it at higher returns and given you a pittance….over 66 years ( 2015-1949). Buy term insurance and invest the difference in stocks, gold/silver, real estate, diamonds, art, scotch etc. than investing in a life insurance policy. Life insurance companies win because most people will cancel… Read more »
arch1
Irregular
7406

All too true.

Jeffrey M
Irregular
636
Jeffrey M

I think there is some merit to the product if you tend to use loans to purchase cars or other big ticket items. The argument is that you make yourself a loan from the policy rather than from a bank and pay the policy back with interest. If you are fortunate enough to be able to pay cash for big ticket items, then it wouldn’t make sense.

Danskane
Guest
0
Danskane
Being a subscriber to a few investment advisory publishers for a few years has done alot to increase my knowledge of the investment alternatives . My father bought me a 10K whole life policy when I was 17 which his wealthy insurance broker and “friend” said would end up “paying for itself” after I reached a certain age which I cannot recall now (55 years later) as well as accruing a substantial cash value which I would be perfect to use for investment in a businessor a home. Well, because I respected my father, I paid the recommended premiums for… Read more »
Paul T
Guest
0
Paul T
The root of all evil is the the love of money and not money, because in and of itself, money can do absolutely nothing. The good book also says, store up treasures in heaven and not here on earth, where it decays and thieves steal it, which includes unscrupulous insurance agents and companies. They are in business to make money and have found ways to do it beyond all belief. Stock and financial services planners are not much better, if left to their worldly vices. The balancing act is to store up, but not hoard up treasures here on earth,… Read more »
Paul Jorg
Guest
0
I agree with you 100%, Paul T. The Bible says to lay up treasures in heaven, where no moth or rust can corrupt. God has promised to take care of His children (those who have been redeemed by the saving blood of Christ) and to work out all things together for good for those who love the Lord. How’s that for an insurance policy? If you think that God does not keep His promises, take a look at what God promised Abraham, Isaac, and Jacob, and where Israel is today. We are witnessing prophecy being fulfilled today, and modern miracles… Read more »
Haha
Guest
0
Haha

Omg so this highly praised shit is just create a life insurance and then burrow money in the bank, on the life insurance? I sure hope these banks never get their own paramilitary hit squad 😀

jeh
Guest
0
jeh

thank you for telling the truth.

saved me $49.00

Jerry D Young
Guest
0

If it is done as suggested, does it work as advertised?

What is the difference between waiting 10-15 years to accumulate enough to be a real asset and investing in things like a 401(k) or IRA plan for 35 years to have enough for retirement?

Without the hype and hate, does whole life insurance, with reinvested dividends actually pay off in the end?

Jerry D Young

burningsuntech
Guest
0
burningsuntech

Thanks for the info, Gumshoe. I have been going through these “presentations” with a skeptical eye and so far they have all promised one thing… to make the presenters rich off of subscriptions. There seems to be no end to the ways these guys reword, represent, and generally hash over the same stuff just to get you to bite the bait. I’m now $49 richer. Thanks!

kenny
Guest
0
kenny

Respect everything in life.
Design your heaven or hell in the after life….

wpDiscuz