If you purchase an Infinite Banking policy to create sustainable wealth, you must think and act all the time as a banker to obtain optimal results. The best way to reach that state is to read and reread Nelson Nash’s “Becoming Your Own Banker”.
Cash flow really is king. It’s business 101. You can have a profitable enterprise, but if you have poor cash flow you can get yourself into financial trouble pretty quickly and even go broke. Liquidity is highly important,
especially in a recessionary environment, and must be watched constantly by the money manager at the steering wheel of a business.
The Infinite Banking Concept is an excellent cash flow management strategy, and this strategy is implemented through the design of a high cash value whole life insurance policy from a top-ranked mutual life insurance company. Why is it an excellent cash flow management strategy? Well, it provides you with a safe and secure place to store your money, while keeping maximum liquidity, access, and control.
Ramsey’s First Problem: 12% Returns on
Regarding the first problem, Ramsey’s figure of 12%
returns on a mutual fund is an unfair benchmark to hold
against a whole life policy. Ramsey doesn’t specify
exactly what kind of mutual fund he is considering,
but for returns that high they must be heavily equitybased
We must never forget that beyond all of
the outstanding attributes of a properly designed dividend-paying Whole Life
insurance contract and how it works, policy loans are a completely separate
undertaking and are a central feature of the Infinite Banking Concept.
The new whole life insurance products have lower guaranteed interest rates, which makes the spread between the guaranteed interest and the dividend rate much larger and since in most cases dividends are reinvested into the polices to buy more PUAs, the policies, long term have more cash value and give the client more money in retirement. The life insurance industry is in good financial strength, and we have now seen evidence that it continues to innovate and deliver excellent whole life products.
We are specifically discussing a tax strategy that calls for taking the cash flows that are already earmarked for paying your taxes and re-routing them through a correctly designed IBC policy that has the capacity to adjust to your particular situation and provide the freedom to not be dependent on outside bankers. As before, I want to emphasize that this idea does NOT reduce your tax liability—I am simply presenting options for people to redirect cash flows that would occur anyway.
In 2020, life insurance companies had a huge expense that far exceeded their expectations. It was a sharp increase of 15.4% in death benefit claims. This was the largest annual increase the industry has experienced over the last 100 years when we were affected by another pandemic.
I can incentivize you do just that by showing you a way to fund a large
Infinite Banking Concept (IBC)-type life insurance policy, while using cashflows that are dedicated to paying your taxes.
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: