Infinite banking is a wealth creation concept that has been practiced for hundreds of years by the wealthiest people in our country.
So, why don’t we hear about it?
It’s quite simple really. For every dollar that a person places into a High Cash Value Life Insurance Contract, that means less dollars going to Wall Street, the Big Banks, and Traditional Retirement Plans.
The result?
Less Money Under Management.
Less Fees For the Wall Street Machine.
Less Interest Paid to the Banks.
Less Tax Revenue Generated for the IRS.
The “Powers That Be” have every incentive to not only hide this strategy from you, but they make a concerted effort to attack, confuse, and dissuade.
That’s why there is SO much misinformation—or fake news—coming from misinformed and uninformed sources.
Infinite banking uses a tried-and-true system to grow wealth while still providing access to liquid cash.
It’s what BANKS themselves do. They store much of their Tier One capital in cash value life insurance – where it’s liquid & unassailable.
How does it work? Start by storing your cash inside a properly structured, dividend-paying whole life insurance policy with a strong mutual company.
Over time, you build up equity in your policy (called “cash value” in the insurance industry) that you can leverage to make personal purchases or invest.
When you take the line of credit against the policy, there is no approval process. Getting the loan is contractually guaranteed – without any credit checks, credit reporting, tax returns or banks statements needed to qualify.
In addition, YOU control the repayment terms and decide how quickly or slowly you want to pay off the line of credit.
What’s more, your policy is credited dividends and interest based on the FULL BALANCE!
For example, if you had $100,000 of cash value in your policy, and you borrowed $75,000 to make a down payment on a rental property, the dividends and interest is credited based on the FULL $100,000 (not $25,000 as if we had made a “withdrawal” from a traditional account).
The interest you pay on the line of credit is calculated on a declining balance every year as you pay it back, and the interest you EARN is calculated on an every increasing amount every year as the policy compounds.
The net effect?
You end up recapturing the entire purchase price, plus the interest cost, plus profit on the purchase!
Whole life is a long-standing, tried-and-tested product designed to last your whole life. Whole life has existed for two hundred years; it has survived the Great Depression, it has survived the Great Financial Crisis, and it survived a global pandemic.
It’s not tied to the stock or bond market, and it has a contracted minimum interest rate.
Indeed, while the value of both stocks and bonds have cratered this year, the cash value on my whole life insurance has gone up – guaranteed!
It has given me a bond-like return – but without any of the risk of bonds!
As a non-correlated asset class, it is one of the few financial vehicles that has actually generated positive returns this year.
The presence of the insurance policy within your portfolio as a volatility buffer provides tremendous peace of mind, which can help you weather financial storms and can reduce the chance that you make emotional, harmful knee jerk decisions with the more volatile asset classes you hold in your portfolio.
Inside your whole life policy, not only can you not be harmed by any of the downturns that we may experience – but instead you position yourself where you can actually take advantage of those downturns.
How?
Because your cash values are safe and easily accessible! So when 99% of people are panicking and selling stocks and real estate in a fire sale during the next recession, you’re able to swoop in and scoop up those assets for cheap.
As Robert Kiyosaki says “Millionaires are made from recessions.”
Indeed, I know an investor who picked up 4 properties in 2010 – 2012 at “half price”, held the properties 4-5 years while renting them out, and then sold them for 3-4x what he paid for them!
Talk about timing the market!
Is another opportunity like this coming again?
Only time will tell, but it’s best to be prepared, and an infinite banking policy can help you to weather the economic storms AND take advantage of declining asset prices that accompany most recessions. Contact me today for a complimentary consultation to learn more about how you can “Become Your Own Banker” with an Infinite Banking policy.
Ron Sneller
Registered Financial Consultant
Ronald.sneller@snellerfinancial.com
Comments are closed