Q. What is the Infinite Banking Concept?
A. The idea of the Infinite Banking Concept is that you, the hard working American, trying to get ahead is giving away thousands of dollars through to financial institutions by paying them interest. The Infinite Banking Concept shows how you could get this money back into your own pocket by borrowing that money from yourself rather then the financial institutions. Also, teaching you why you should pay yourself interest on the monies you borrowed from yourself.
Q. Why would I pay myself interest on money I borrowed from myself?
A. Half the battle of how we use money is how we think about money and ourselves. The Infinite Banking Concept is saying, if you are so willing to borrow from a bank, for example, and pay them interest why aren’t you willing to do the same when you use your own money? Do you think more of the bank then you do yourself? Paying that same interest back to yourself is going to create a much bigger pool of money for you. Much like those financial institutions for charge interest to make money, you are now the one making that money and collecting it.
Q. How do I do this?
A. The Infinite Banking Concept teaches you to use cash value of dividend paying whole life insurance policy with added feature most agents don’t know about or some companies may not even offer.
Q. What is so great about these features?
A. They give you the ability to have earlier access to more of your cash value. Making the policy a financial tool along with the added bonus of death benefit. You now have something that is doing the job of two things rather then just one.
Q. Why would I use a life insurance policy rather then my savings account or my mattress?
A. When you take money from savings it decreases your account and you are left with nothing to earn interest on. When you take money from your mattress you are left with less money and a softer mattress. The key to the dividend paying whole life policy is that you get to borrow the life insurance companies money while they leave your money in your account as collateral leaving it to earn interest.
Q. Is this an Investment then like a 401(K) or IRA?
A. NO. The founder of the Infinite Banking Concept, R. Nelson Nash, is saying you aren’t “investing in life insurance, ” rather you are setting up a very conservative financing system.
Q. Why would I want this rather then and a/or a 401(K) or IRA?
A. Control. With a life insurance policy you have control of the cash value to use in anyway you like without penalty. Compared to any other readily-available option this is going to give you that kind of control and availability.
Q. What if i can make a better rate of return somewhere else?
A. If you can find an investment to make you 20%, then great. Go for it! Infinite Banking is saying, you have to get the money from somewhere to put into that investment, get it from your policy.
Q. So if it’s not an investment and it’s not about the rate or return what is it about?
A. Simply the Infinite Banking Concept shows a household where they can put (headquarter or house) their money (wealth). This is not a locked account the way a 401(k)or IRA is currently designed.
Financial institutions are in the business of making money. Think about how much money you would have if you never paid them interest.
Becoming your own banker, is something most people never think about. Doing what they do is key to making and keeping more of your own money.
Learn how the benefits of the Infinite Banking Concept can help you and your financial future and why whole life insurance is beneficial when used is this specific manner.
You can stay where you are or contact us today to look at moving forward. We are not sure you will fit our mold, but if you do it will be the best move you make.