How to Become Your Own Bank: Infinite Banking Concept Explained
Using Dividend-Paying Whole Life Insurance to Build Wealth
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Imagine financing life's big purchases while growing your wealth at the same time
What if you could pay interest to yourself instead of a bank?
Let's dig in and see how infinite banking (IBC) works and examine the math behind it.
This "system" or process has been around for nearly 200 years. Obviously I didn't invent this idea.
The introduction to these ideas and a firm foundation can be found in R. Nelson Nash's work - specifically his book:
Becoming Your Own Banker: Unlock the Infinite Banking Concept.
Greater details can be found here:
Likewise, I have learned a great deal from the following professionals:
Chris Kirkpatrick and the team at Life180.
Full disclosure - I hold my whole life insurance contracts with various carriers via Chris's Insurance agency called Life180.
Visit his site here:
Finally, I have consumed hours worth of podcasts, YouTube video's and have read books from the following parties.
Brent Kesler and Chris Naugle with The Money Multiplier Method.
https://themoneymultiplier.com/
Caleb Guilliams
Garrett Gunderson's book - What Would the Rockefellers Do?
Let's dig in.
The Problem with Traditional Financing
Traditional loans drain your wealth.
You lose control of your money.
Interest payments benefit the bank, not you.
Introducing the Infinite Banking Concept
The Infinite Banking Concept allows you to:
Use your money while it continues to grow.
Earn interest on every dollar, even when borrowing.
Pay yourself back with interest.
Deposit > Borrow > Repay Yourself > Repeat.
Example #1 - Financing a Car (at your local Bank)
Scenario 1: Traditional Car Loan
Loan Amount: $30,000
Interest Rate: 6%
Loan Term: 60 months
Monthly Payment: $580.54
Total Paid: $34,832.40
Interest Paid: $4,832.40 (to the bank)
Example #2 - Financing a Car (IBC Loan)
Scenario - using "your bank" to buy the same car
Loan Amount: $30,000
Interest Rate: 6% (to yourself)
Loan Term: 60 months
Monthly Payment: $580.54
Total Paid: $34,832.40
Interest Paid: $4,832.40 (to yourself)
More coming soon......