The Infinite Banking Concept (IBC) is a major paradigm shift for most people. You should start by reading several times Nelson Nash’s “Becoming Your Own Banker” with an open mind. Yes, indeed; since we started practicing and teaching the implementation of IBC in 2008, we have read that book 4 or 5 times every year, and every time we read it, we are able to find new applications for this concept. We recommend that you also read Nelson Nash’s “The Case For IBC”.
You should have patience, discipline and long-range planning since IBC is not a “get-rich-quick” scheme and it is not for the person who is always looking for instant gratification. By all means, you should spouse an “abundance” mindset and avoid a “scarcity” mindset.
If you find yourself that after paying all your bills you have no money left – disposable income – on a consistent basis, you may have to wait to implement IBC. You should seriously consider increasing your income and/or reducing your expenses before you start your IBC implementation. You should always be sure that you are paying yourself first.
We offer the following rule of thumb contributions to successfully implement IBC: if you start IBC when you are 20 years old or younger, you should contribute a minimum of $3,600 per year; if you start between the ages of 21 and 30, you should contribute the higher of $6,000 per year or 10% of your gross annual family income; if you start between the ages 31 and 40, you should contribute the higher of $12,000 per year or 10% to 15% of your gross annual family income; if you start between the ages of 41 and 50, you should contribute the higher of $18,000 per year or 20% to 25% of your gross annual family income; if you start between the ages of 51 and 60, you should contribute the higher of $24,000 per year or 25% to 30% of your gross annual family income; if you start at age 61 or older, you should contribute the higher of $30,000 per year or 30% of your gross annual family income. At any age, you may want to supplement your premiums with an initial lump sum to be able to enjoy the full benefits of your IBC policy.
There is no better place to store your disposable income than in an 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.
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.
You become wealthy when you annual sustainable cashflows exceed your annual expenditures by a substantial margin.
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.