What if we could show you how to be out of debt in 9 years or less including your mortgage without spending any additional dollars than you are spending right now?
Many Americans are on a treadmill, with goals to be further ahead but just can't seem to get there with tax, tuition, inflation, the rising cost of health care, and countless other factors.
Enter the Infinite Banking concept.
The Infinite Banking Concept (or IBC) is the process by which one becomes their own banker, as taught by the late Nelson Nash. In his definitive book on the subject, Becoming Your Own Banker, Nash explains how whole life insurance policies uniquely function as dividend paying assets through accrued equity; And the many creative ways one can utilize this liquid cash value, such as:
- Creating one’s own tax free lending system to finance large purchases (i.e. a car or a home), independently of commercial banks and lenders
- Generating personal wealth (as with stocks or cryptocurrencies, but without volatility and with the added utility of protection for one’s beneficiaries)
- Using these practices for business financing
A unique way to get off the treadmill. It's rather simple actually... stop paying banks and lenders. Take every dollar and make it go to work for you. Avoid risk and secure your future with guaranteed growth you can count on.
To learn about how this concept can work for you, select the contact tab on the bottom of this page!
The misinformation surrounding infinite banking is legion. Many people wonder if infinite banking is a scam.
The short answer is no, it is not a scam. Rather it is an idea.
All too often we see people confuse infinite banking with life insurance, specifically dividend paying whole life insurance.
However, infinite banking is not a product, but a concept that USES life insurance.
We cannot stress enough the importance of having your money stored in a safe environment, free from the ups and downs of the stock market or real estate market. Whole life insurance is an asset that is not correlated to the stock or housing market.
What does “non correlated” mean?
In a world obsessed with the stock market, it is important to have assets that are non correlated, i.e. not tied directly to the stock market, that do not move in lock step with the fluctuations of the market. Whole life insurance is not tied to the stock market.
Safe Bucket
And with its guaranteed cash value growth year over year, it provides an excellent “safe bucket” of assets that can help insulate you from the ebbs and flows of the stock market. And consider this, we are in the midst of one of the biggest bull markets in history. One day it will come to an end. The past two stock market crashes (2000 and 2008) led to at least 50% losses.
Whole life insurance is a great way to create some stability in an otherwise unstable world. In addition, if you are looking to truly diversify into different asset classes, instead of having your entire nest egg in the stock market, a participating whole life policy is a great option.
Improves cash flow and liquidity
If you had a $500,000 home with 100% equity (i.e. you owed zero), most people would tell you, “Great job, you are debt free!” However, what if you owed $500,000 on that same property (a liability), but you also had $500,000 in a bank account (an asset), or better yet, a life insurance policy earning tax deferred compound interest)? Would you still be debt free?
In reality, you would have a $500,000 debt, but you would also have $500,000 LIQUID CASH available for you whenever you needed it. Your balance sheet would reflect ZERO overall debt, with a growing asset (your cash value).
However, if all that equity was in your home and trouble hit, how difficult would it be to take all or even some of that equity out? The answer, pretty difficult if not impossible.
Personal Family Financing
Another pro of IBC is that you are in control (i.e. the owner and operator) of your own personal or family financing company. You are using life insurance as your own bank as you become your own banker.
Becoming your own banker means you can:
- loan money out to your own company,
- charge your company interest,
- then your company pays you for the use of your money,
- your company can write off the interest,
- you recoup the interest, which
- you use to pay back your policy loan, and
- you then repeat the process ad infinitum.
Each time you loan your money out to either yourself, your family, your business, or whoever, you are charging interest.
As you recoup the money with interest, you are adding more money into your bank (policy) than you started with.
The result is that over your lifetime you have amassed wealth beyond what you ever believed was possible. When you engage in the strategic use of whole life insurance applying the infinite banking concept you improve your cash flow and liquidity.
Equity storehouse
When you employ an infinite banking strategy you are placing your equity into a tax-advantaged storehouse for later use. The cash in your storehouse (your policy) is growing due to “true” compound interest. It is true compound interest because you are never touching your actual principle, but instead are borrowing from the carrier’s general fund. That way your money in your policy is continually compounding, even while you are paying simple interest on a policy loan, which currently can be variable or fixed.
You are allowed to continually add to your policy in addition to your normal premium through vehicles known as life insurance supplement riders, additional life insurance riders, or paid up additions. Paid up additions allow you to take cash profits from your various assets (real estate, oil, dividend stocks, you name it), re-invest that cash into your “bank” and convert those cash profits into tax free dollars via policy loans, to use for additional cash flow asset purchases, large ticket purchases (vehicles, office equipment), retirement income, etc.
Tax advantaged policy growthYour policy’s cash value accumulates tax free. And you can completely avoid ever paying taxes on your policy gains by choosing to take out life insurance loans........Taxes are the number one killer of wealth and your number one expense. A properly structured cash value policy designed for infinite banking can help you avoid taxes altogether versus having your money grow tax deferred in an IRA or 401K, only to be at the mercy of the government when it comes time to take your money out.
How does your policy grow?One way your policy grows is through the use of life insurance dividends.
DividendsParticipating life insurance provides an annual dividend payment, considered a return of premium for tax purposes, to its eligible policyholders. Although not guaranteed, most top mutual insurance companies have paid a dividend every year for over 100 years.
Life insurance dividends can be used for many different things but ideally you want to use the dividends to purchase additional paid up life insurance. As you do this, your policy’s cash value will continue to grow exponentially, as well as your death benefit.
Overtime, thanks to an increasing death benefit, your policy’s value will increase as you age.
Tax free loansAlthough you may be tempted to withdraw cash from your policy, it is important to understand that life insurance policy loans are not taxable. You are using money that has grown at around a guaranteed rate of 3.5-4% a year, plus dividends that add another potential 2-3% a year. That is a potential 5-6% yield that compounds year after year that you can use tax free via loans.
(Note: potential returns vary but when interest rates rise, your whole life returns will most likely increase as well. At one time, dividends from whole life companies were double digits.) And if you are not being taxed on your gains, it is similar to earning another 2-3% interest, depending on the tax bracket you fall into. On a side note. Consider that normal stock market returns are taxed around 20% or more. That means if you earn $10,000, you will pay around $2,000 in taxes that year (maybe higher). If you earn $10,000 in your policy you will pay ZERO taxes, even though you have access to that money via collaterally assigned policy loans. Think about what the long term implications of not being taxed on your entire cash value accumulation will be.
It is truly amazing compound interest growth over the long haul, and why whole life insurance is the best vehicle to use when practicing infinite banking.
GuaranteesNow we just mentioned above one reason whole life is the best vehicle for infinite banking. In addition, a properly structured participating whole life policy provides a few incredible guarantees.
Whole life insurance guarantees:
- Guaranteed cash value accumulation
- Guaranteed death benefit
- Guaranteed fixed premiums
- Guaranteed compounding interest rate growth
PrivateFor many asset classes, the public can simply do a search and find out what you are up to. For example, running a credit report or title search will tell you a great deal about an individual’s financial holdings. However, with life insurance your policy’s information is private. Your life insurance holdings does not show up on any reports or searches.
Further, when you take out a policy loan for infinite banking, your loan does not show up on a credit report, which comes in handy when you are applying for financing. And there is another reason why this privacy is beneficial – creditor protection.
Creditor Protection for Cash Value Life InsuranceThere are many states that provide creditor protection for life insurance.
So, if you are faced with some financial strife, your cash value may be sheltered from creditors.
Additionally, if you are sued, your money in your policy may be protected from a judgment.
As we mentioned above, whole life insurance is a non correlated asset. Further, it offers guarantees and is backed by some of the most financially sound companies in the world. So since you don’t have to worry about volatility, you also don’t have to concern yourself with diversification. There are two reasons I say this:
Reason one: With an infinite banking policy you have certain guarantees, such as guaranteed cash value growth, guaranteed death benefit, and guaranteed fixed premiums. It is this certainty that removes the need for diversity in your portfolio.
Reason two: If you are practicing infinite banking you are using your whole life insurance as an asset to borrow against for the purchase of other assets. As you are doing this you are engaging in diversification by purchasing cash flowing assets.
So the bottom line is this, by implementing infinite banking into your wealth building strategy you will automatically diversify in order to maximize your policy, your wealth and your legacy.
The average individual pays 34% of the money they earn in a lifetime out to interest. This interest goes to cars, credit cards, student loans, mortgages, all the things we finance is interest going out …and we pay taxes!
About $.40 of every dollar the average American earns goes out to taxes. Everything from income tax, to sales tax, capital gains tax, gas tax, estate tax etc. This leaves approximately 26% to pay for everything else like vehicles, clothes, insurance, gas etc. We call this Lifestyle money. Of this amount only 3% goes towards savings... |
Most financial advisors concentrate on that 3% savings. You know what they say... “You’ve got to save more money” but most people are unable.
With Infinite Banking, we focus on the problem, 34% going to interest and 40% to taxes. What if we could reduce that 34% going to interest and also reduce taxes? That would allow for more lifestyle money and would also free up cash to contribute towards savings! Using the Your Family Bank 7 steps of Money Management, we can do just that. |
Let's look at how banks leverage cash flow
You put a $10,000 in the bank, and the bank may give you 1% interest on those funds.
Walk in the next day and try to get a $10,000 loan, what would your interest rate be? ...24%, 12%, 5%, 29% it all depends on variables like credit score, what your getting a loan for etc. You make 1%. The bank makes whatever percent they choose because banks are a business! How would you like to be the bank?
|
How Infinite Banking Can Help You
Get Out of Debt
It's a simple phrase. More than that, it's a simple idea, yet the concept eludes tens of millions of American families each year.
The Infinite Banking concept provides a solution for paying off debt, reducing taxes and increasing retirement savings using a safe, predictable product that provides guarantees. Infinite Banking concept can show you how to be free from lenders in 10 years or less, including your mortgage, without spending any additional dollars.
It's a simple phrase. More than that, it's a simple idea, yet the concept eludes tens of millions of American families each year.
The Infinite Banking concept provides a solution for paying off debt, reducing taxes and increasing retirement savings using a safe, predictable product that provides guarantees. Infinite Banking concept can show you how to be free from lenders in 10 years or less, including your mortgage, without spending any additional dollars.
- Reduce the volume of interest you are paying to lenders.
- Get out of debt in half the time as your current schedule.
- Increase your cash-flow.
- Decrease your taxes.
- Save for college.
- Retire with tax-favored income.
|
What Exactly Is The Infinite Banking Concept: A Complete Explanation.
Infinite Banking 101with Brandi Jo Newman |
"I was reviewing our bills and was frustrated that no matter how hard I tried, I couldn't seem to lower our debt. I couldn't figure out what I was doing wrong. After listening to (my YFB producer) and seeing the numbers on paper, I have to admit, the program intrigued me. I told them that at this point there had to be a better way than what I was doing and was willing to try anything.
Come to find out, this way was better. We have now been on the plan for almost two years now and have paid off over $50,000.00 in debt. I should also mention that we have not had to change our lifestyle either. Our personalized financial plan shows that we could be completely debt free within 10 years, including our mortgage, and still be able to send our 2 children to college and retire without financial hardship. Thank you for being patient with a skeptic and providing the tools to obtain a debt free future." - Jessica - TX |
Disclaimer: The Infinite Banking Concept® is a registered trademark of Infinite Banking Concepts, LLC. Veterans Trust Financial Group is independent of and is not affiliated with, sponsored by, or endorsed by Infinite Banking Concepts, LLC. This information is for informational purposes only! Please consult with us for more detailed and personalized information