What is Infinite Banking and why is it an Important Concept?
The way the average person saves in America is fundamentally broken. Even your typical person who could be classified as fiscally responsible spends approximately 30 percent of their income on interest on loans and debt, and saves approximately 10 percent of what they make.
What is important about infinite banking is the process and not the product. Your mind must break itself from the bondage of the banker using your money.
You must take control of the process. At Living Wealth, much of what we do is based on a principle known as infinite banking. It is an extremely effective and efficient way of using your money in your lifetime while also being able to pass down your wealth to your loved ones and charities of your choice. Anyone is able to implement this strategy in their own lives.
In this process, you use dividend paying whole life insurance as the primary means of banking your money. In this way, you are growing your savings while shielding them from tax liability while benefitting from the profits of the insurance company through a dividend. So not only are you able to let your money grow tax-free, but you also have access to much of it at any time, which cannot be said for many other types of savings vehicles like trusts, CD’s and annuities.
This is the real power of infinite banking. The power of good financial habits. Be a great steward of your money. Learning to use your money and not the banker’s money. You are essentially taking loans from yourself, against the monetary value accumulated by your life insurance policy. This maximizes the effectiveness of your money, as every time you take out a loan, the cash value grows and you continue to receive dividends.
This is a more sustainable and financially savvy choice than using traditional vehicles like CD’s and annuities, which take a lot of the control of your finances away from you. As you continue to pay back your policy (instead of a bank), you are recapturing that interest.
Remember: 30 percent of the average person’s income goes toward paying interest. When you’re able to pay that interest to yourself over the course of time, this gives you a significant amount of money that you can redirect for your own purposes. Instead of giving money to bank shareholders, you’re giving money back to yourself.
We would love to provide you with more information about how you can take the concept of infinite banking and use it in your own life. Contact us today at Living Wealth for more information about how you can get started.
Nate Scott, Client Development Coach
Nate Scott joined Living Wealth, Inc. with a desire to help families and small businesses become financially free. It was there, under the wise leadership of Ray Poteet, that he learned the power of “Becoming Your Own Banker” through Private Family Financing (PFF) and has made it his mission to tell others so that they can feel the same sense of freedom and control that he enjoys today.
Nate loves to teach people the benefits of becoming their own banker and to coach them on how to successfully implement the system in their constantly changing lives. He longs for everyone to hear the truth about how money really works and to understand the power and freedom that Private Family Financing can bring to their families.