Interesting Facts About Christmas 2021
Since we had such a great response to our Thanksgiving blog where we talked about its beginnings and the reason to give thanks, we thought we would bring you interesting Christmas Facts. Let’s get started:
2021 December BankNotes
A common method of showing the public the power of Nelson Nash’s
Infinite Banking Concept” (IBC) is to stress its feature of “constant
compounding.” In contrast to many other asset classes, dividend-paying
Whole Life insurance always increases in value. Indeed, some proponents of
IBC enthusiastically declare: “There’s nothing else like it!”
Blog 82 – Wealth Through Infinite Banking
The Infinite Banking Concept is an excellent cash flow management strategy that is implemented through the design of a high cash value whole life insurance policy from a top-ranked mutual life insurance company.
To successfully implement Infinite Banking, it requires patience, discipline, and long-range planning. An Infinite Banking policy needs a capitalization period of four to seven years after which the policy becomes more efficient every year, where efficiency is measured by the ability to generate cash values.
2021 November BankNotes
The central message of Nelson Nash in BYOB is that everybody needs to rely (at least implicitly) on financing for life’s major purchases. Even if you buy a car
with cash, you are forfeiting the opportunity of investing that cash and earning a return on it. So even people who always “pay cash” still experience the same implicit tradeoffs between spending now versus later. Therefore, Nash argues, the real question is whether you are going to obtain your financing from a bank controlled by outsiders, versus a bank that you control.
Blog 80 – The Design Of Infinite Banking Policies
The design of high cash value, dividend paying whole life insurance policies, or Infinite Banking (IBC) policies, has two phases. The first phase consists of policy blending, heavy use of paid-up additions, and the typical 10/90 or 20/80 split between the premium going to the base whole life policy and the premium going to the paid-up additions rider. This first phase is quite consistent from case to case and the only variability might be in the premium split due to the total amount of premium (annually or monthly) to be paid, and design restrictions from the insurance company we are using.
2021 October BankNotes
I spend a lot of time motivating difficult financial topics by constructing “thought experiments.” In a thought experiment, you can only focus on one or maybe two moving parts, while holding everything else constant. This is the
way to isolate the impact of the factor you want to understand. However, it means the whole exercise is necessarily unrealistic
2021 September BankNotes
In his classic work Becoming Your Own Banker, Nelson Nash claims that the standard approach to life insurance has things backwards. Consumers have been taught to get their desired death benefit for as little outlay as possible.
2021 August BankNotes
Nowadays the average American has been taught to believe that a very responsible financial strategy is to plunk as much of his paycheck every month as possible into a “diversified” and “conservative” mix of stocks and, if he wants to really play it safe, to mix in some government bonds. Naturally the acme of savvy saving is supposed to be a tax-qualified vehicle such as a Roth IRA for the self-employed, a 401(k) for salaried employees, or a 403(b) for educators.
In the 20th century, households used actual savings accounts at the bank—which were distinct from checking accounts. Households also invested directly in bonds and life insurance.
2021 July BankNotes
PART III Lesson 3 To Start Building Your Own Banking System Content: Page 42-43, Becoming Your Own Banker Fifth Edition
Now, let’s look at Method E. We will call this twin “Insurance Sister.” She uses dividend-paying whole life insurance as a depositary of the necessary capital to create her banking system to finance her automobiles. She puts $5,000 per year into very high-premium life insurance with a mutual company. Recall the diagram back on page 41. (There are some exceptions to this requirement – there are some stock companies that have dividend-paying policies that perform very well).
Blog 79 – When To Pay Cash And When To Use A Policy Loan
One of the questions we more often have from our clients is: Should I pay for this expenditure with the cash I already have in my conventional bank account, or should I first deposit that cash as an unscheduled PUA contribution to my IBC policy and then use the cash from a policy loan to purchase the needed item? What they are really asking is if there are any special conditions or guidelines they should consider before deciding whether to use cash or a policy loan for their expenditure.