We call disposable income to the amount of your annual family income that you have left after you pay all your bills. Obviously, if you have nothing left, you need to increase your family income and/or reduce your expenses. You have to do this if you wish to be financially successful.
There is no better place to store your disposable income than in an Infinite Banking Concept (IBC) policy: a dividend-paying whole life insurance policy from a mutual life insurance company properly designed to generate high early cash values. This type of policy offers you fixed and guaranteed premiums, cash values that increase every year income tax free and without risk, and those cash values are available to you in the form of policy loans. Remember that when you take policy loans, the money comes from the general account of the insurance company also income tax free while the cash values collateralizing your loans remain in your policy earning interest and dividends. A great use of financial leverage! Don’t forget that the death benefit is paid income tax free to your beneficiaries. No other financial asset offers you the advantages of a properly designed IBC policy.
We recommend that if you start your IBC policy when you are relatively young, your total annual premiums should be approximately 10% of your gross annual family income and this amount should increase to 30% of your gross annual family income as you grow older. If you start your IBC policy at an age older than 60 years old, you may want to supplement your premiums with a lump sum larger than $200,000 to be able to enjoy the full benefits of your IBC policy.
You can compare the advantages of a properly designed IBC policy to any other alternative like tax-qualified plans, IRAs, 401(k)s, stocks, bonds, mutual funds, bank savings, or Certificates of Deposit.
Remember that you can use policy loans to invest in opportunities that come your way, and they can be in investing and expanding your business or professional practice, real estate, private lending, private equity investments, franchises, or new businesses that generate sustainable cashflows. Use these cashflows to repay your policy loans and reuse these cash values to obtain more businesses that generate increasing cashflows, and on and on. Be sure you have expertise and experience in the areas you are investing.
Some of you may prefer not to invest and only take policy loans to take care of emergencies, to assist in paying for your children’s college education, and to supplement your retirement income when you slow down. IBC provides you with peace of mind and a stress-free life.
If you would like to learn how you can grow a substantial amount of cash that you have access to at any time without penalties, is unrelated to the stock market, and will generate income that is not included in your tax return, visit our website at http://InfiniteBankingSimplified.com/ or feel free to email us your questions at ContactUs@InfiniteBankingSimplified.com or call us toll-free at 1-844-443-8422.
Isis B. Palicio, LUTCF, MBA
Pedro A. Palicio, MBA, Ph.D.
Infinite Banking Concepts® Authorized Practitioners
We are experts in designing high cash value dividend-paying whole life policies.
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