E152: How Family Banking Empowers You And Gives More Ways to Grow Financially

Nate: In this episode, we discuss how the Infinite Banking Concept empowers you to grow financially in many different ways. This is why we call IBC the financial gateway drug. It’s often the first step to take back control of your finances and spearheads your journey to financial independence. She’s Holly, and she helps people find financial freedom.

Holly: He’s Nate, he makes sense out of money. This is Dollars and Nonsense. If you follow the herd, you will be slaughtered.

Nate: All right, well, welcome back to the show. We appreciate everyone who listens. We appreciate that you take the time out of your day to spend it with us. And we really do hope you’re getting quality content from us every other week. Man, we’d really appreciate it if you’d take some time to review and rate the podcast, if it’s something you enjoy, that’s the best way to get the word out. If you’re a big fan of Infinite Banking and you can leave us a positive review, it’ll boost us up on the charts and more and more people will get to hear the news, but let’s go ahead and dive in today, Holly. We’ve got a fun episode. I don’t know how long we’ll be here for it, but I think it’s going to be exciting.

I thought I would start right off the bat and say this podcast, especially for those who are getting into infinite banking and maybe on the fence about it, and they’re trying to figure out if it’s something that they want to do or it’s too good to be true, or trying to investigate it, that a podcast like this at face value may seem like just two people, Nate and Holly, getting together who are big fans of it, who drank a whole bunch of Kool-Aid around the campfire and are just going to try to sell you on this idea.

I’m probably biased, but I really want you to take this content as being real to Holly and me. In other words, this is why we do what we do. This is why we enjoy this concept. This is why of all the financial concepts and strategies that exist, this is something that we gravitate to, and this is why I personally do it and have enjoyed every second of it for the last 10 years and why I have 10 policies and I’m opening an 11th policy this year. It’s why I pay a huge proportion of my income into policy premiums to practice this concept. And the real truth is that infinite banking is not meant to limit you in any way, it is meant to empower you to accomplish things financially. That’s the whole reason we’re doing it. And we’re going to talk about why we do it. Control, empowerment, all these different things are really what I was after financially, and it’s why I was drawn to this concept.

Holly: Well, and I think what we’re really going to share too, is Nate, how we use it, how it actually empowers us to be able to make financial decisions or investments and to use it in a way that it’s not just a life insurance policy. It is like drinking the Kool-Aid, it’s a lifestyle in my viewpoint. It’s a lot easier when you start to understand and use this banking system, this process than just waiting on the sidelines and watching everybody else do something.

Nate: Yes, you’re exactly right. I think one thing that everyone has to overcome when they start learning about it, and most of our listeners are probably already practicing IBC, they’re already working with Living Wealth and they’re just listening to our podcast, which is awesome. And I’m saying a lot of times, either you had to at one point, get over this, or you still need to get over this. And so when we talk about empowerment and certain things of that sort, that it’s supposed to offer more freedom for life. Many times people, when they get involved, they get worried about some of the scary words that exist in IBC. So the words like premium and the words like loan, policy loan, and they hear these words that, yeah, they’re scary. They don’t sound like the most freeing words in the world and they bring it, they assume that it must be somehow limiting because we’re using these types of words. I’m here to say that the truth is, the world is who wants to limit you financially.

So the whole reason to do IBC is to break free from the herd. In other words, when I say the world, I mean just the normal government sponsored, retirement program, Wall Street funded scenarios are actually designed to restrict you by nature. Maybe they think that they’re trying to do what’s best for you, because you can’t be trusted. You can put money in here, but you are penalized and taxed to take it out. And so it’s very discouraged because if you take it out, your retirement’s going to be ruined. But the whole thing is meant to limit you. The same thing when you work with banks and you borrow money from them, there’s all these rules first off, whether you can even qualify for the money and then there’s very strict rules on how it has to be repaid. And so you’re very limited in life under the normal ways.

What I’m encouraging you to do is don’t bring your previous limitations into the world of IBC. You will not do very well here. So, because the whole purpose of IBC is to take back control of your financial situation, hopefully spearheading your journey to financial independence. And it’s supposed to empower you to achieve things in life. That’s the whole point of doing it.

Holly: When you think of that scary word premium, there’s a word that goes after it even in life insurance, it’s premium deposit. As soon as I realize and change that mindset in my head that I’m making a deposit into my own bank account, I am paying myself, I’m depositing, I’m enriching my life. Deposits actually create income. When people make positive deposits into your life, they’re not taking something out and withdrawing, they’re putting it in. So I think that, that’s the way you have to look at the premium. And I’m just going to say on a loan, I just went through this with a client, but banks view loans as assets, that’s the same way you should view a loan. It is an asset, it is not a liability, it is an asset. And to take those scary words and make them the positive words in your life, assets empower you to do something, to make a change, to enjoy something, it’s not taking away from you, it’s not creating a liability, it’s creating an asset.

So I think that when you take those scary words and you actually say, oh, this is a premium deposit, I’m depositing into my life, my family’s life, I’m creating a better future for them, for ourselves. It changes the ideal of what you’re actually doing to make it that empowering like, look what I get to do now. And having that mindset of this is what it’s going to allow me to do. And I hope that, that’s what you guys get out of this podcast today, is how it can empower your life and your family’s life, and the people around you.

Nate: As you brought up, when you’re paying premiums, it may surprise some people to find out that I’m super excited every time a premium comes due. No, that’s not the case with my car insurance premium, that’s not the case with my home insurance premium and my term insurance premium and all these different things, because normally premiums are payments you have to make, you have to make payments or bad things happen. You got to get rid of that when you practice IBC. First off, because it’s not actually what’s happening, but we associate things with words that we’re familiar with. And that’s the biggest issue. The biggest hurdle is that there are words that exist in the infinite banking world that also exist in your previous world, but they just mean completely different things and they act completely different in every way. So I don’t really have time to go over all of that in this show right now, I’m just saying that, that’s a big hurdle.

We understand that’s a hurdle that you have to complete change your association and the feelings you feel about words and what they mean and how they act. So normally when you have a loan is very limiting. IBC loans are not limiting. Normally when you make loan payments, you lose money to a bank and they have the money. When you make loan payments back to the policy, you still keep all of the money. There’s a lot of different things that are happening here. So we have to retrain and rewire the brain under this new world. But the whole goal, by the way, if you would just take our word for it for at least right now and believe that the whole purpose of IBC is not to limit you in any way, it’s to empower you. That’s the whole purpose of the concept and practicing it. And I think you’ll be able to see some things maybe in a new light.

So I wanted to give an example, Holly, in my own life just very recently, I’m closing on an investment property this month. And essentially what I wanted to paint a picture of is I’m paying huge amounts of my income into premium. Probably 50, 60% or so or more by the end of this year, because I’m opening a new policy, a large one, but all that to say it’s very large proportion of my income in premiums, but I’m not an idiot for doing that nor do I feel limited by that. So the whole purpose of this is I’m stuffing as much money into my policy and I see it as the financial hub for everything else I’m doing. So as much money as I possibly can is funding policy premiums, which is producing cash value that I’m then leveraging to essentially achieve anything I want to in life. That’s the whole purpose.

So some people come into it, and what I love about IBC is that it’s not me trying to convince anybody to remove money from existing investments or that could be invested somewhere else because I have this awesome investment opportunity over here, and I think the rate of return is going to be great. I love how I don’t have to actually talk about that, because all I’m trying to show people to do is how they can change essentially the way they finance everything in life and make a lot more money. So in my own life, I bought a property that we were going to flip that I’m actually going to end up keeping a hold of the property, but it was in Tulsa, Oklahoma. We bought a home that needed a lot of work for 120,000. We put in about $50,000 in remodeling. I’m in a 170 grand and the home’s probably worth $250,000 at this point, I’m actually going to Airbnb it. So I’m going to probably put $15,000 in buying furniture and applying all the things that are going to need for that.

But all I’m saying is I was able to do all of this without a bank. I was able to do this all without needing to raise money from any source. I have all of the money built into my own system that I was able to pay cash for everything without even thinking about it. And what I’m saying is I felt empowered to do these types of things. So this is just one example, obviously of many, but I’m just saying, this is the one I’m closing on this month. IBC didn’t keep me from investing, it’s actually what empowered me to do it. The alternatives, if I hadn’t actually started IBC, I probably wouldn’t be doing things like this. What if I was just plowing money into stocks and bonds and mutual funds and brokerage accounts and retirement programs? What are the chances that I would’ve sold all of those out to do this deal without having ever heard of IBC? Probably pretty slim.

This is why we call it the gateway drug for many people. As soon as you start this, you start seeking opportunities to put your bank in action. The whole point of starting the bank is to empower you to put it in action. And one thing I wanted to get to, Holly, and I’ve been talking for a while, so you can cut me off if you have anything to say too, but the reason why it works so well, not only does it empower you to do it, but it also makes everything you do more profitable. That sounds salesy, but it’s just true. Argue with me if you want to, but it’s just how math works. If you can find another way to do what we’re doing, that mathematically produces better results. Please show me. I’m just saying that I can show you the math and how it makes more profit.

So not only do I have a real estate investment that’s going to be producing positive cash flow and hopefully appreciating over time, but what am I going to do, Holly, with the cash flow that’s being produced by the property?

Holly: Put it back into a policy.

Nate: I’m just going to put it back into a policy, and I’m going to churn it back out again whenever I find another opportunity, and that’s going to produce cash flow and it’s going to roll back into my policy, and then I’m going to turn it back out. And I’m actually going to make a lot more money over time with the hub being the policy than I would anywhere else. I built an example for a real estate group that asked me to speak to them, and I’m not going to go through the whole thing, but they wanted to know what it looked like if we were to make a $50,000 down payment on a home using a policy loan as compared to what if we just build up $50,000 in a bank account to make that same down payment to purchase an investment property. What would be the difference?

And so there were some parameters given, let’s assume that the property produces about 9% cash flow, and let’s say the down payment’s $50,000. So if you were to invest $50,000 in a down payment to purchase a property and you hear the term 9% cash flow, that really just means that after all costs of paying a mortgage and paying property management and setting money aside from maintenance and all sorts of things, that the property’s still going to produce a positive cash flow of about 9% per year, which is $4,500 on a $50,000 investment. So it’s $4,500 per year, which is 350 to $400 a month in that range of cash flow, positive cash flow.

And that’s what they felt that they could get. So I said, okay, I’ll build it based on these things. So I built up a policy over a few years, putting premiums in, saving money in order to make this down payment. Some of you have enough money where you could do that in year one. You could just write one premium check and pull 50 grand out and buy a property. But I was trying to say, hey, this isn’t a game just for rich people. So we just built it up over a few years and built up 50,000 of cash value. We stopped paying premium once we hit that. We just let the policy pay for itself after that. We took out one policy loan for 50,000 and we went out and invested in the property.

The cash flow that comes from the property, the $4,500 a year, normally would just go into the investor’s bank account and sit there waiting for another opportunity, waiting for enough money to accumulate so they could go buy another property, let’s say. All we’re going to do is take the $4,500 and put it back in the policy, which is the hub now, it’s not a bank account anymore, your hub is now your policy, which is your bank. It is your big bank. It’s supposed to encompass everything you’re doing. And we’re going to assume he held the property for 20 years. And if he got $4,500 a year for 20 years in cash flow, he would’ve received $90,000 in rental income over that 20 year timeframe. So if he had a regular bank account, that was his hub, he would’ve received $90,000 in deposits over those 20 years from the renter. And if he’d just let that money store up in the bank account, he would’ve had $90,000 at the end of 20 years, but inside the policy at the end of 20 years, he does not have 90,000, he actually has a $161,000.

So he made $71,000 of profit just from the policy, that’s on top of what he made from his investment. So the 90,000 of profit from the investment on cash flow profit turned into a $161,000 of actual cash tax free without taking any additional risk at all whatsoever. And honestly, he also would’ve received additional tax deductions for the interest he paid back to his policy, which we don’t even really want to get into today. The whole purpose of the policy is to empower you, not only to make investments, but to do many things in life, it’s not supposed to limit you. So while it empowers you, it’s also supposed to help you make more money being the financial hub, and you can’t escape it. So I hope that was helpful.

Announcer: Is the money in your bank account losing value instead of growing? Are inflation and taxes going to get better or worse? Conventional banking makes the bank rich using your money and pays you little to nothing in return. We believe in challenging the status quo. After all, most of those conventional tools only seem to make someone else rich. Let us show you how to beat the banks and inflation. Visit livingwealth.com/beatinflation. You’ll receive instant access to what we call the beginners’ course. This in depth and easy to follow course teaches people how to create and profit from infinite banking. You can become debt free in control and achieve financial security and significance. Stop letting the banks and Wall Street dictate your financial future. Go to livingwealth.com/beatinflation today to instantly receive free, no obligation access to this priceless course on infinite banking. Again, that’s livingwealth.com/beatinflation. Now back to Nate and Holly.

Holly: We’re not just talking about individuals that have a lot of money, we’re also talking about individuals that are middle class, even what some people would consider lower class. It works for every single individual. And whether it be a house that Nate is buying, or it be, I have some clients, new clients, they’re starting a business with modular homes that they are putting on land and they are creating it using their infinite banking system. They had to have a system in place though, in order to be able to use it, even with the prices of houses going up. Now, the interest rate’s gone up.

When we say empower, it allows you the ability not to be afraid to hold onto something. And I’ll say, for example, for me, I moved last year, but we still have one piece of property that I just have never felt like we were supposed to sell. And so we basically did the same thing you Nate decided to do, but we decided we’re going to start Airbnb-ing it. We had to do a little bit of renovation, if you want to say, we had to bring it up to code and this and that, but the money in the future of what it allows us to do, if we Airbnb it is amazing. And I don’t know about you Nate, but in Tulsa is the house that you actually are purchasing, is it something you would go and stay in?

Nate: Yeah, that was actually a good thing you said too, because we have a ton of family in Tulsa, which is why we were even looking in the area for investment opportunities, because we were like, hey, we’ll Airbnb and we’ll make money on it, and then we’ll come and stay, we’re already down there a few times a year as is. And Holly, your previous home was in the Carlsbad area, which is the prime Airbnb area. It’s where everyone wants to be Airbnb.

Holly: And where it is and what it can make, but it gave me the freedom not to be afraid to hold onto it, Nate, and we have the money in our policies that we can put it into it, make it what it should be and start air Airbnb-ing it, and generating extra income versus feeling like because the housing market was going soft, oh my… I need to sell right now. And I’m just going to say this piece of property took two and a half years to find.

Nate: I bet.

Holly: We couldn’t ask for a better location. It’s almost half an acre, which is unheard of, it just gave us the ability to have something. Now I’m going to say this. I don’t ever plan on moving back to California, ever. But do I like the fact that I have a place that if we want to go stay, we can? And Nate might know this, or some of you guys might not know this, but we’re very big into Comic-Con, and it’s in San Diego. So it’s ideally a location we can go and stay at and then go do our stuff that we want to as a family, which brings me to the next point of, it’s not just for investment properties or that, for vacations, things you want to do with your family. And you most of the time say, I’m going to penny pinch it to enjoy that vacation instead of being able to have the freedom to take it out of your policy and enjoy that vacation and make those memories.

So we’re not just talking about investments that you can use it for. It’s also those family memories, those times that you can’t put a price tag on to me.

Nate: There’s something about life, whenever you have these policies built up and you have lots of cash value and a lot of our client, maybe we should have some clients on. So then you don’t have to take our word for it. We drank too much Kool-Aid, our brain’s riddled with IBC, and I understand that. But what I am saying is I wouldn’t trade it for anything. Having done it for 10 years, I wouldn’t trade this life that IBC has empowered me to live, having all of this money that can never go backwards, that can only go forward growing for me all the time, that I’m in total control of without the government getting involved, without having to deal with banks. I like the life. It’s a simple life.

And as you said, it’s not just for investments, it’s like I love being able to go on vacation with my family, using a policy loan to fund it. And knowing that I have this gigantic pool of money that I’ll pay it back and I’ll reuse and I’ll pay it back and I’ll reuse it. But the whole while, the entire pool is getting bigger and bigger. It actually is supposed to simplify, improve life in many ways, but not only that too, Holly, for things like charitable giving, I give way more because of infinite banking. I know that’s hard to describe, but I’m saying it has empowered me to do it. I don’t feel worried about my financial future the way I think some people do, which means that I’m more free in how I can give, because I don’t have a fear that I would have by the way, if it wasn’t for IBC, which I feel like I probably shouldn’t have, because I need to trust in the Lord. But beside the point, I’m saying one less thing that would hinder me doing what I feel God’s called me to do.

So you could hear this as a sales pitch. We just wanted to be open truly and just say, hey, these are why we love it. We could teach anything on this show. We could teach any financial strategy we wanted to, we could do whatever financial strategy we want to, but there’s just something about infinite banking that once you catch it, once you catch what we’re trying to do and what IBC allows you to do, that is unique and very difficult, if not impossible to replicate with any other financial tools, then oftentimes you fall in love with it, which we have done and which we have many clients who have done.

Holly: And I’m going to say the empowering part name. I’m just going to maybe add this on there. But like Nate said, charitable giving, vacations, cars, the list can go on. And this probably for me now is more of a reality where I’m really not worried about it, and I have a lot of friends that are, but I have a daughter that is a junior in high school and she basically can go to college in two years, 2024.

And I am not even worried, Nate, where she wants to go. She can go wherever she wants to go, wherever she wants to go, because of infinite banking, because of the empowering of it, to know that we can send her wherever she wants to go. And we literally are going to recapture or get that money back, the empowering feeling of not feeling like you only have to go to a state school, or these are the only schools you can apply to, because that is all we can afford versus the ability to say, where do you want to go? What do you want to study? Maybe she doesn’t want to go to college right away. I’m okay with all of that, because I know that the money’s there, like we talked about, it’s this big pile of money, but you get to choose where and how you use it, and you never lose control of that wherever you’re putting it.

Nate: It does reduce stress in a lot of ways, because you actually are never scrambling really to figure out where the money’s going to come from. So in other words, Holly, if you had done something else and put all the same money and other things, and maybe you had, let’s say 529 plans to go to school, you think to yourself, I can really just send her wherever I have enough money in the 529 plan, which very well may not have been enough. But then if she wants to go to a school that is more expensive than the 529 plan would’ve allowed her to go to, suddenly you’re having to stress out about pulling money out of retirement programs from here and pulling money out of your income from here and pulling money out of maybe selling a property here. In other words, there are people who scramble if things don’t work out according to plan.

Whenever you are seasoned into this concept and you have policies and you’ve capitalized them for a period of time and you are well funded, the idea of scrambling to pull money together really goes out the window for the vast majority of us, or at least that’s the goal. And when you’re first starting out with IBC, you may not realize that obviously, because there’s just not a lot of money in. You’ve just got started, year one or year two. But talk to me and our other clients, talk to us who have been doing it heavily for 10 years and ask us, was it well worth it? What is life like whenever you’re actually got a fully capitalized operational system of policies that you’re banking with that are more than you could need. I’m like, wow, yeah. I wouldn’t trade it for anything. There’s nothing that I regret. There’s nothing I wish I would’ve done. I’m just super happy to be here doing what I’m doing. So, if we wrap up… Oh, go ahead, Holly.

Holly: And I just want to say, in case you didn’t catch what Nate was saying 10 years in, have been doing this for a while. It is very different than when you first start, but I’m just going to say you have to get started somewhere like Nate, you talked about your premium level. I will be very authentic and say, when my husband and I first started, we could only, and I mean it was a stretch afford $300 a month. That was a huge stretch for us as missionaries and stuff. But we did it because we believed in it. And the freedom that $300 a month starting at 15 years ago to this point today, if we’d never gotten started, I’m going to say, I’d be where a lot of people are, stressed out about where do I send my kid to college? How do I pay for that? We can’t even go on vacation. We can’t even go and do something we enjoy, because we’re so caught up in the circle of working really hard and everybody else getting all our money.

So I just want to say, you got to start somewhere, start where you’re at, Nate and I have drunk the Kool- Aid, but we had to start where we were at to get to where we are in the future. We couldn’t just do it overnight and snap our hands. We actually had to start the program and believe in the process and walk through it in order to get to where we are today.

Nate: There is some hype in the infinite banking community, but I want you to know there’s actually substance. So if you go look online and you read about it and you watch YouTube videos, there’s some people who, the way they describe it sounds too good to be true and magical. And what I’m saying is they’re trying to hype it up, they’re trying to get you excited about it so that you buy something from them. And I’m not trying to disparage them or anything of that sort. The truth is so good that it doesn’t even need hype. I’m just saying there’s substance to it, there’s math behind it. It’s real. It’s been working for hundreds of years. I’m very excited to be a part of it.So if we want to wrap this up, Holly, IBC, the Infinite Banking Concept, the entire idea behind it is meant to empower you to grow financially, to be better with money than you were before, and to unlock potential that you may have been bottled up the way the world treats you. So the world is trying to limit you financially. And I know that sounds, once again, maybe a little bit scary, but we know it’s true. There’s rules and regulations everywhere you go trying to limit your capability to actually manage your own money, that’s how they do it, because they would like to manage the money for you. That’s how they make money.

So I’m just simply saying that whenever you do IBC, it’s supposed to empower you to accomplish things financially. You have to see that going into it. Don’t get worried and don’t bring limitations with you because of the words that are used inside of this world, the words mean something different here than they do everywhere else. And that is just a fact. You’ll have to take my word for it as you get involved. Don’t be worried about the words. The words oftentimes will bring in preexisting notions. We have to change our paradigm when practicing IBC. It’s supposed to spearhead your journey to financial independence, that’s why we call it the gateway drug. Oftentimes it’s the first step someone takes on their journey to financial independence. And it’s not meant to limit you from a taking advantage of opportunities, it’s supposed to empower you to take advantage of opportunities. Not only that, it’s supposed to help you make more money while you do it. That’s why we love it. Holly, what do you say? Does that sound good?

Holly: That’s good. We can wrap it up.

Nate: All right. Let’s wrap it up. Thank you guys so much for being on the show once again. If you’re enjoying it, if you enjoy the content, we would really appreciate you rate and review it, especially. And that’s the best way for us to get the word out, best way to grow the reach of our show. This has been Dollars and Nonsense, if you follow the herd, you will be slaughtered.

Holly: For free transcripts and resources, please visit livingwealth.com/e152.

Announcer: Listeners, one last thing before you go, start your journey towards financial security and wealth today. Visit livingwealth.com/beatinflation. You’ll gain instant free access to the beginner’s course Ray, Nate and Holly made just for you. Again, that’s livingwealth.com/beatinflation.