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:

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“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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Fake Dan Brown
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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
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 Β»

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Ron Waldron
Guest

“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
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 Β»

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dee
Guest

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 Β»

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

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Terry Carey
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Terry Carey

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

tomtom73
Member
πŸ‘32
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
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Josie

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

rusty_h
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πŸ‘7
rusty_h

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

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Conn Huskies
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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.

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Laurencio
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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 Β»

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dee
Guest

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 Β»

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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.

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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!

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Allan
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Allan

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

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Denny
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πŸ‘74

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 Β»

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rusty_h
Member
πŸ‘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
πŸ‘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
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cpains01

Great reply, does Edgar ever hear about Judas?

Jeff
Guest
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 Β»

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dee
Guest

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 Β»

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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

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Edgar Arceo
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Edgar Arceo

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 Β»

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Nano
Guest

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,

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Sandy Shore
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Sandy Shore

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

sagenot
Guest
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.

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ggswift
Member
πŸ‘171

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
quincy adams

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

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