This is not about “finding a tax loophole.” Rather, we are pointing out one option that people with large cashflows — such as business owners who annually make a large payment to the IRS
Nothing in recent years has convinced me more of this fact than attempting to explain the Infinite Banking Concept (IBC) to others. When I consider the number of years it took me to finally understand it, I wonder if its simplicity is not perhaps the real source of its difficulty.
A Business Credit survey1 conducted and published in March 2016 by
the Federal Reserve Banks of New York, Atlanta, Boston, Cleveland,
Philadelphia, Richmond, and St. Louis reports that “cash flow” is
the number one problem facing small businesses with fewer than
Control of your money: When you contribute to a qualified plan, the government, the retirement plan administrator and/or the employer, determines what you can invest in, how much you can invest depending on your age and/or income, when you can withdraw it, and what taxes and fees you’ll pay for withdrawing earlier. Of course, the government can and does change the rules!
When you contribute to an IBC policy, you and only you, are in control of your money. You determine how much to contribute to your policy, limited only by its design, and you determine when and how much you can withdraw or borrow from your policy. The insurance company that issues your IBC policy cannot change these rules!
Most of the skepticism about life insurance is pointed towards the cash accumulation features of permanent life insurance policies.
NOISE: a loud or unpleasant sound;
Thoughts from R. Nelson Nash regarding the Infinite Banking Concept.
When you take a policy loan, the money does not come from the cash value of your Infinite Banking Concept (IBC) policy, but from the general account of the insurance company, and your cash value remains in your policy earning interest and dividends.
One of the greatest awakenings we can experience happens when we
recognize that our monetary systems rest entirely on our confidence.
Also relevant to this article is this perspective. According to the Tax Policy Center roughly 80 percent (of revenue for the federal government) comes from the individual income tax and the payroll taxes that fund the social insurance programs.
The first step in successfully implementing the Infinite Banking Concept is to read and reread Nelson Nash’s book “Becoming Your Own Banker” as many times as necessary until it becomes obvious to you that you should control 100% of your financing needs.