YOU can be in CONTROL of YOUR MONEY!
And to a greater degree, Be in Control of your FUTURE.
Every Adults is a Banker in one way or another.
We're all more or less a Business. Like it or not.
It is extremely rare for a person would not use a bank at all. For most of us we think of banking as the place where we hold our paychecks and then distribute from that account to pay bills. Same old, same old.
If there is anything left over, we may put some of that in an interest-bearing account like savings, a CD, or possibly put it to stocks, etc.
What we do not typically think about at all is that the banks make a ton of money on all people who bank in this manner. The typical American will pay over $600,000 in interest over the course of their lives. That is by design.
You see, from the very beginnings of a Piggy Bank, we are taught to think like consumers and not like bankers.
Banks only offer a low rate of interest on your deposits but then loan it out at much higher rates.
Maybe that is frustrating, but it is the norm. They're not bad people. They TELL what they're doing. YOU accept it.
I have a Client that - this year - had over $400K in their Bank.
They were getting paid .05% (half of one percent) return on that money. Took out their normal working capital loan.
They borrowed $250K, - after all the application forms - at a 'friendly, good customer rate' of 8% (eight percent). ????
The average bank will make around 1500% greater return than what they pay out in interest. Fact, not opinion.
That's how they do business. We all accept that. We are supposed to think that's normal......because it IS!
There's gotta be better way, right?
THERE IS.
Cut to the Chase.
The Infinite Banking Concept is a personal finance strategy that uses specialized whole life insurance policies
as a way to build a private banking-style system.
This idea was developed by R. Nelson Nash and made popular through his book Becoming Your Own Banker.
It teaches regular people how to:
(a) save and store money in insurance policies that have been
(b) designed properly for high cash value as well as providing
(c) annual dividends paid through long standing mutual companies. Some have been doing this for 150 years.
Owners of these policies learn how to borrow from them and how to then pay off the loans when THEY want.
As time and money allow, they pay themselves back at higher interest rates than they'd ever pay others! Legally.
This gives them both maximum control over their money while continuing to build more equity in their Policies.
You see? It compounds on itself and you control how much, how often and when you want to BYOBanker!
KISSI
Keep It Simple Smart Investor
New Day : New Rules : New Thinking
In simple terms the system works like this:
A. – Purchase a properly designed whole life insurance policy. - This means it is properly designed for high cash value and not just a death benefit. Make no mistake, an end of life cash benefit is a really smart idea on it's own.
B. – Build Cash Value. - The Owner of the Policy (not the Insured Person) has total access to borrow against the cash value of the policy at any time. The Owner is typically the Beneficiary as well.
Part of the owner’s premium goes into a savings-like component of the policy which:
(1) grows tax-deferred (or non-taxable) and
(2) earns dividends (typical, but not be *legally guaranteed).
*These Companies have been paying YEARLY Dividends consecutively, every year for some over 150 years!
No one can hard, cold guarantee you that will continue; says the government. But, what do YOU think?
The compounding of the cash value never stops during the life of the Policy, which is a huge part of the system.
see (3) below
C. – Borrow Against the Cash Value. – You can take policy loans for whatever you want. It's "YOUR MONEY" Most people use it for vehicles, college, or investments. Then, they pay back these loans (+ low interest rate to the insurance company) so that they can borrow from them again later. (3) The Owner of the Policy can also pay higher interest than the insurance company charges which will increase the death benefit and cash value if desired.
In some cases people charge 'themselves' (the Policy) crazy high interest rates. WHY WOULD YOU DO THAT?
The money goes BACK into the Policy TAX-FREE. Make Money, put it back into the Policy = make more Money!
D. - Recapture Interest. – This is a theory which is not necessarily true. The interest on the loan goes to the insurance company at around 5% currently. What this allows is that your total policy premiums over the years continue to grow at the guaranteed rate (around 4%) and full dividends (usually 1.5-2.0%) because you are borrowing from the insurance company and not your own policy. The cash value in your policy is really equity that the insurance company says is generated within the policy contract.
E. - Legacy Benefits. – When you die, the Beneficiary or Beneficiaries receive the death benefit minus any outstanding loans. MOST IMPORTANT = Typically, this is fully non-taxable.
Sound too good to be True?
I know. I understand.
In 2012 when my friend brought up what little he knew about all of this Infinite Banking Concept, Become Your Own Bank....
Sure. I thought he was nuts.
Now my family and I PERSONALLY have 16 (sixteen) Policies.
And, we'll continue to get more as the family size increases.
My GOAL is to teach YOU how your Non-Profit*, your For-Profit,
you personally, or your family, can develop this system and use it to the maximum potential to ENsure your future. Now.
*non-profit rules are different than personal/for profit
Positives
Negatives
There's always Pros & Cons
Pros:
Almost everything about building these policies is positive.
There are:
-tax advantages
-continued growth
-accessibility
-liquidity
-flexibility in borrowing and repaying a loan
-guaranteed returns without market volatility
-total privacy, and future access to retirement
-disability or terminal illness access to death benefits.
Cons:
The ONE and ONLY negative can be making sure this System is a "fit" for your plans & purposes.
This system requires discipline and long-term commitment.
It is certainly not a 'get rich quick scheme'.
In my mind, any such 'negative' is completely offset by the security and peace of mind the death benefit offers.
The reality is >> these policies cost far less than the fees of traditional investments over the course of a lifetime.
And........ there is virtually NO CHANCE of losing money 'on the deal'. Ever. No matter the Market Economy.
Try that where some say that it is too expensive and inefficient.
I know. I have personal experience in the 'traditional' methods: I lost 42% of my Retirement in 2 months.
STILL, This is important:
If a person is short-term in their thinking, or they lack self control and planning, this system is not for them.
This Infinite Banking Concept system allows a person or business to replace their banks and gain complete control over their money decisions.
It does take dedication and a good understanding of how banking works.
But, if done correctly and managed properly, this system is a POWERHOUSE!