The Infinite Banking Concept (IBC) is a significant paradigm shift for most people. You should start by reading Nelson Nash’s “Becoming Your Own Banker” several times 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 each year, and each time we read it, we 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 is not for someone who is always looking for instant gratification. Adopt an “abundance” mindset and avoid a “scarcity” one.
If you find yourself in a situation where, after paying all your bills, you consistently have no disposable income left, you may have to wait to implement IBC. Consider increasing your income and/or reducing your expenses before you start your IBC implementation. You should always make sure you pay yourself first.
We offer the following rule of thumb contributions to implement IBC successfully: 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 can 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 insurance company’s general account, which is also income tax-free. In contrast, 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 cash flows. Use these cash flows to repay your policy loans, reuse these cash values to acquire more businesses that generate increasing cash flows, and on and on. Be sure you have expertise and experience in the areas you are investing in.
You become wealthy when your annual sustainable cash flows exceed your annual expenditures by a substantial margin.
Some of you may prefer not to invest and only take policy loans to cover emergencies, assist with your children’s college education, and supplement your retirement income when you slow down. IBC provides you with peace of mind and a stress-free life.
If you’re interested in learning how to grow a significant amount of accessible cash that is not subject to penalties, is independent of the stock market, and generates income that does not need to be reported on your tax return, please visit our website at http://InfiniteBankingSimplified.com/. You can also email your questions to 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.