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Infinite Banking
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The Problem
The average American is paying out 34.5% of every disposable dollar toward interest. If they are saving 10% of their
income (the average saving rate in America is negative) they are in a 3.45/1 ratio of interest to saving. Rather than
fighting to get a higher rate of return on their savings and investments it might make more sense to change the environment
in which their money operates and capture all of that lost interest by creating their on bank. For this reason every person
should be fully engaged in two businesses - Their occupation and banking.
How Our Money System Works
There is only one source of money in our banking system. It circulates from banks to lenders to borrowers to banks and so on.
We finance everything we buy. You either pay interest to someone else or you give up interest you could have earned.
(When you pay cash the interest the money could have earned is forfeited).
For these reasons when we are discussing investment alternatives we must not only weigh the return we will receive but we must
also evaluate what we are forfeiting or giving up. This mind set will become more important as we evaluate the Infinite Banking Concept.
The essence of the Infinite Banking Concept is how to recover the interest that you normally pay to a banking institution
through the use of dividend paying life insurance, so that the policy owner (you) makes what a banking institution does. Earnings
grow within the policy tax deferred. You are both reducing your tax burden and capturing monies for yourself that a banking
institution normally would receive. And by the way, you have a death benefit thrown in on the side!
Anytime you can cut your payment of interest to others and direct that same market rate of interest to an entity you own and
control, which are subject to minimal taxation then you will have improved your wealth generating potential significantly.
What if You Could Create Your Own Bank?
First you would need to have a funding vehicle (the dividend paying life insurance policy). Then you would need to fund it. This might
take 4 to 7 years depending on how fast you could build the equity, however we have some strategies to show you how to do this in a fraction
of the time.
Once your bank was funded you could begin to make loans to yourself (or others) and you would need to pay the bank back.
By borrowing and repaying at current or better interest rates you will be building a banking machine that will eventually
be able to handle all of the banking needs a family might have; cars, education, homes, whatever. You would be able to
create an asset pool that would take the place of Social Security, retirement plans and other market driven assets. It would be
a tax-free growth vehicle and it would be a source of tax-free retirement funds.
This is not a new concept, but one that has been available for over 200 years yet most people arenot aware of how to implement it.
Please let me know if you want to know more about this concept as it does deserve your attention.
This information comes from R. Nelson Nash and you can get his book, Becoming Your Own Banker, at
www.infinitebanking.org. or I will provide you with a
free copy after our first meeting.
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