If you need money to invest, where will the money come from? It will almost always come from your savings account. So why can’t it come from your Banking Policy? It can! Let’s see how you can profit from it.

Assume that your brother, who doesn’t have a good credit score, asks you for a loan to buy a business. He needs $100,000 and promises to pay it back to you in 10 years (120 months) at an annual interest rate of 12%. So he’ll make 120 monthly payments of $1,435 each, totaling $172,200. A before-tax profit of $72,200; not bad! After you pay 20% capital gain taxes, you are left with an after-tax profit of $57,760. That is a 58% return on investment, which is pretty good!

But can you do better than that? Of course you can! By using your Banking Policy as a financing tool. If you take a loan using the cash value of your policy as collateral, the insurance company charges you 5%, or $1,061 a month for 120 months, while the investment is paying you 12%. The extra money that you receive – $1,435 minus $1,061, or $374 a month before taxes, becomes $299 a month after paying 20% capital gain taxes. When you contribute that extra $299 a month to your Banking Policy, your cash value at the end of 120 months is $211,130, an after-tax profit of $111,130 !! This is a 111% return on investment, or 91% better profits by using your Banking Policy as a financing tool.

To summarize, at the end of the 120 months, you have a total of $211,130 in your policy compounding at approximately 5% per year that you can reuse for future purchases or investments.Two important things are at play here: 1) Although you lend your brother the $100,000, the same $100,000 remain in your Banking Policy earning interest and dividends at an increasing rate, which means the increase in cash value each year is greater than the year before. Do you realize that your money is doing double duty for you? 2) If your brother would have borrowed the money from an outside bank, the interest and profits that you earned ($111,130) would have gone to the outside bank, not to you.

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 https://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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