Infinite Banking for the Individual

Infinite banking allows individuals and families to grow rich and eliminate risk in their financial lives. By understanding the infinite banking concept, individuals can create a safe, predictable financial plan wherein real wealth will be created, both for themselves and for future generations.

Sound Principles of Money
There are a couple ways to create wealth: You can increase the amount of money you make, or you can increase the amount of money you keep. The most damaging part of our personal finances is not the small rate of return that we are receiving on our investments, but it is the amount of money we spend every month on debt (car loan, mortgage, credit cards), interest, taxes, and opportunity cost (the growth your money could have earned had you not payed cash for your purchases). The basis of the banking concept is that by becoming your own bank and financing your own purchases, you minimize the amount of money you consistently lose, paying it back to yourself, and increasing your overall wealth. Redirecting the money that would otherwise go to debt, interest, and opportunity cost, will have a significantly more powerful effect on your finances than the rate of return on your investments ever will.

Whole Life Insurance
Though the principles of banking are important, the vehicle in which the banking system is implemented is equally important. Whole life insurance has proven to be more useful as a banking system, than for the simple purpose of life insurance. Its qualities allow it to be the best suited vehicle for the purposes of the infinite banking concept. Whole life insurance has multiple advantages, including: Liquidity, Use, Control, Guarantees, Tax Free Growth, No IRS involvement, No Probate, Creditor Protection, Unlimited Funding, No 59 1/2 or 70 1/2 rules, and Ownership. These advantages allow policy cash values to grow quicker and more efficiently than any other liquid fund available today (please read the 47 year case study to your right for a specific example). Additionally, its safety and guaranteed growth allow it to be an exceptional product for the use of the banking concept.

Start Small
Creating a physical bank would cost hundreds of thousands of dollars to start, your own private banking system, however, can be effective whether you are saving $100 or $10,000 dollars each month.

Lump Sums
Many individuals come into large lump sums of money whether its through an inheritance, work bonus, etc. The question often arises, what do I do with this extra capital? Using lump sums to fund your banking system can be one of the quickest ways to begin benefiting from you banking system. This money will have guaranteed growth when you’re not using it, and it will grow tax free. This money is liquid, and ready to be used for your next big purchase.

High Net Worth
The majority of those that have acquired a significant amount of wealth have worked hard to do so. The infinite banking system helps these individuals in a couple ways: It creates a place for wealth to reside, with guaranteed growth and tax advantages. The money is liquid in case an opportunity arises to utilize that money elsewhere. Additionally, the money that is used within the system passes on the heirs income tax free. This allows for large sums of money to be easily transferred, avoiding probate, and increasing, substantially, the amount of money passed on.