Infinite Banking: Secrets to Becoming Your Own Banker
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- Äas pĆidĂĄn 15. 07. 2024
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The infinite banking concept is how you can become your own banker using a properly designed dividend paying whole life insurance policy from a mutual insurance company. The main engine of an infinite banking life insurance policy is dividend paying whole life insurance from a mutual insurance company, which offers several unique benefits, including guaranteed cash value growth, guaranteed fixed premiums, and a guaranteed death benefit.
Additionally, to create a high cash value infinite banking policy you will need to add a paid up additions rider and a term insurance rider to the policy. These infinite banking policies are designed for high cash value accumulation and growth, with the majority of the life insurance premiums going towards the paid up additions rider. As the policy's cash value grows, so does the life insurance death benefit.
There are also some other names for the infinite banking concept, such as Bank on
yourself, the 770 account or 702 J account, cash flow banking or cash flow insurance, family banking, private family banking or the family banking system, cash value plans, wealth accumulation account, and many more names but it's all the infinite banking concept.
This webinar serves as a comprehensive overview of the infinite banking concept originated by Nelson Nash. Barry Brooksby is an infinite banking practitioner and shares his insight into the infinite banking concept, brought to you in collaboration with Steve Gibbs and Insurance and Estates. You can visit our infinite banking strategy page where you can access other resources on this subject. www.insuranceandestates.com/i...
đ Chapter Timestamps Here â°
00:00 Start
01:15 Housekeeping
02:57 Debt Clock
06:08 Pension Gamble
10:09 Uncertainty
11:26 What is the Infinite Banking Concept?
14:03 How do you capitalize on the infinite banking concept?
19:39 Infinite banking example
23:10 Whole life insurance myths
25:10 Life insurance policy loans
26:15 life insurance loan example
34:39 Implement an Infinite Banking Strategy
43:56 Why would you want an infinite banking policy?
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DISCLAIMER: All content in this video is for educational purposes only and is not to be interpreted as personal financial advice. Always do your own due diligence.
#infinitebankingconcept #infinitebanking #becomeyourownbank #bankonyourself
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Webinar Overview:
00:00 Start
01:15 Housekeeping
02:57 Debt Clock
06:08 Pension Gamble
10:09 Uncertainty
11:26 What is the Infinite Banking Concept?
14:03 How do you capitalize on the infinite banking concept?
19:39 Infinite banking example
23:10 Whole life insurance myths
25:10 Life insurance policy loans
26:15 life insurance loan example
34:39 Implement an Infinite Banking Strategy
43:56 Why would you want an infinite banking policy?
Need a contact number.
"Pay yourself first" is from an old book called the the richest man in babylon.
Yes, you are correct!
I need assistance, please đ
I have watched tons of video on CZcams about infinite banking and i can tell you that this is the best video about this topic on CZcams. Well explained with a lot of examples and he cover all the escenarios. Keep up the good work đ
Iâm 18 and I will definitely set up my estate plan!
Be more then happy to help. We are also aggressively expanding. DM me your phone number and email my office will follow up with you soon.
The first time I have thoroughly innerstand overstand and understand âŸâ„ïž
Amazing information. I wish I would have watched this twenty years ago. Thank you Barry!
Glad it was helpful! Thanks for the comment.
Wow thank you. Great video.
Barry. I'm so glad I found you. You are the first I found after looking for a while that goes in to fine comb detail about how this strategy works. I greatly appreciate your time! Are these policies IUL's? If not what carriers can I find that offer these policies? I am a licensed agent and have recently discovered this concept of infinite banking. No one that I work with has ever spoken of this and I would like to start myself on this journey as well as my 4 kids. Once again thank you for a great video! I will definitely continue to follow you!
Absolutely not IUL. They are exclusively dividend paying mutual whole life insurance policies.
This was uploaded a year ago. America will become the next Zimbabwe, if things do not turn around immediately.
@@libraryoneatl may be true. However in an environment of rising interest rates I like a fixed guaranteed return and dividends.
@HavingFun I personally own 2 policies, have âusedâ and love them, just saying.
Amazing info...thank you
Glad it was helpful!
Extreme expertise of a very high-level play. The Corps that are executing this play is soooo high level, c'mon! Much, much appreciated Mr. Brooksby!
Thank you for your kind comment. All the best.
More like extreme smoke and mirrors at play here. Unless you are a whole life insurance salesman, you are going to lose a lot of money pretending to "be your own bank." You'd be better off playing "be your own bank" with your own savings account at a high yield online bank or investment account. With that you can truly be in control of the banking process. You control where and how the capital fund is invested. You control how much interest to charge yourself for loans. You can decide if you want to pay yourself back with no adverse effects to your account either way. And, if you pay yourself back the same as if you were paying back the insurance company you will come out ahead. The talking point about your cash value continuing to to grow unaffected by your loan is true but misleading. The math shows that you come out financially ahead with REAL cash compared to cash value if you spend cash from savings and pay yourself back.
@markf.2050 weâve demonstrated the math that youâre referring to many times using sophisticated calculators and it shows that the continuous compounding of a cv account generates cash accumulation in excess of loan costs even if the loan rate is higher than the policy IRR. So these are actual facts and numbers. Iâm searching for facts in your objection and canât find any - youâre checking all the boxes though. Step 1 - attack evil life insurance salesmen Step 2 - tout âreal cashâ and push âinvestment accountsâ. Even more bizarre is your wild idea to be your own banker with your high yield savings account? Because you cannot borrow from your savings while also having the money working elsewhere, this simply wouldnât work. So, itâs obvious you donât understand even the idea of being your own banker which focuses on thinking and operating like a bank by keeping your money moving with velocity. How would you act like your own banker with your investment account? Maybe taking a private loan using it as collateral? And what if it drops in value? Weâre all listening. These arenât just talking points, we demonstrate them regularly. The point is that the guaranteed tax advantaged growth, leverage and liquidity make becoming your own banker possible and none of these attributes are available with the other assets you mentioned, period.
@InsuranceandEstates Bravo, I concur. Mr. Markf.2050 needs to do more research. He's in luck, though. He's already aware of the best actionable content anywhere!
@markf.2050 Banks are fraudsters. Go read 12 usc 1431 of the United State Codes, and explain to me why the Congress appointed Borrower is convincing the Creditor that they are the borrower. The banking industry is a sham of the highest degree! And I'm not even scratching the surface! D.Y.O.R, sir.
Iâm definitely going to look into this Iâm a little bit older now in my life but maybe you can start now and then bring in my grandkids and set them up for the rest of their lives and my daughter son-in-law and my son but I will definitely be checking into this
Thanks for commenting George, it's great to hear about your enthusiasm. If you'd like to connect with Barry Brooksby, our IBC guru, you can email him directly at barry@insuranceandestates.com to request a call. Best, Steve
Great Info đŻđ
Thanks for sharing
thank you :)
You're welcome!
I am an agent and we are setting up these plans. Absolutely amazing how they work.
Because your dollar is buying more death benefit than that dollar, so if you remove dollar, the same thing happens in reverse.
Very interested
absolutely awesome, very clear and on-point.
Nice
THANKS FOR THIS VIDEO EXPLAINER. I
am wondering if you would be open to a phone call (happy to pay for your time) to understand how to approach an insurance agent in Canada who likely doesn't think or direct their clients this way. Also, I would be grateful to have you review the policy before signing. I'm not sure if this is something you do, but I don't want to leave the detail to chance.
Of course, interesting request. Trying to steer an agent toward this is probably not advisable, because even if he or she agrees, it takes time to be able to design these policies properly. I do invite you to connect with Barry about this at barry@insuranceandestates.com and ask about options for your policy. If you and he decide youâd like to arrange a call and have me involved he can circle back with me for that. Thanks for connecting. Steve
Hey J, wondering if you were able to find a company that provides this
@@bennybullet4671 not exactly, I did go down the rabbit hole and the first instinct for every agent was to say things like "you shoukd max out your TFSA and RRSP first" which immediately indicsted they have no idea what I am talking about. I did fine 1 guy in Ontario, but I live in BC and couldn't go direct through him. That's when I backed off it
@@iamjbrand thanks for the reply. I'm in Alberta
crazy how this video was posted on the same day the economy crashed. I definitely want to set my self right im 21. I spoke to a mutual fund life insurance agent but he tried selling index universal but i could do that myself by opening an index fund account. I want set it up right with whole life I just can't find someone that I can trust.
Hello Richard, thanks for your comment. Interesting point about the posting date, wasnât intentional:). Anyway Iâve youâd like trustworthy advice on this, connect with Barry Brooksby and request a call at barry@insuranceandestates.com. Best, Steve
Does it matter which companies you go with for IBC? Iâm in Canada and thereâs a few like ascended financial and also manu life insurance any recommendations? Btw love the video very good stuff thanks
Hey Brian, the short answer is that your company choice absolutely matters. You want a mutual dividend paying whole life company or something similar. In Canada, Foresters is a fraternal company that is similarly structured though I can speak to what is offered for Canadians. Best to you.
I would like to know which company do I use I canât find any online I trust and I need more explanation on how to create or get an account there are tons of video of what whole life insurance is. Thank you
Attorney assisted web based trust planning is an area that weâre exploring as a future service possibility. For now I recommend you locate a local estate planning attorney in your geographic area. Best. Steve
So we have to open many insurance accounts with different companies or just new policies with the same company?
Itâs would depend on how companies are performing at the time of the new policy. I think the best route is to get 1 policy to get started learning and then perhaps consider another policy if your income increases or situation changes. The multiple policy idea is sometimes oversold or misunderstood.
One of the best way to know the integrity of an individual is how he treats others. By saying 95% of agent donât know this you are undermining your fellow hard working insurance agents. It is not good to do that, there are many out there taking good care of their clients.
I hope đ€đœyou stop it.
Thanks for your comment. I appreciate your sensitivity and yet I cannot agree with you. Yes, treating others with respect matters, however one of the problems with the decline of western societies is the dumbing down that is occurring. This is like hoping a for a nice airline pilot who isnât competent, not good right? I actually care more about clients than agent competition, who unfortunately are often undereducated and unmotivated to truly learn what is needed to serve clients. Of course âtaking good careâ depends on what the client needs. If itâs term life, the average agent is ok. Every professional has the opportunity to learn and grow and we actually mentor agents! I hope you can embrace this idea. We shouldnât be crossing our fingers with our clientsâ welfare. Best.
It's sad to say, these sort of companies do not exist in my country anymore. Mutuals/Building Societies/Co-op all now have slick persons in charge who convinced the partners to become shareholders and thereafter convert these institutions into commercial banks, list on the stock market etc. The fact that commercial banks are the most profitable sparked the long time old school clients interest. No they are on the edge with no products they can afford. The institutions now cater to the big new clients. None of these insurance products exists anymore...
Sad, hope we stay the course here. Thanks for mentioning đđ»
Which insurance businesses should I do this with? State Farm?
Hi Mark, as we often say, you really need an expert to help you design a policy and select the right company. State Farm isnât a preferred mutual whole life company. To get more details you can request a call from our expert Barry Brooksby at barry@insuranceandestates.com.
I already started a life insurance policy, Base Premium death benefit. So, since there is really no cash flow, do I start another policy or tell them to change from base premium to PUA?
In order to offer an answer, one of our experts would need to review your policy. Feel free to schedule a call with Denise by emailing denise@insuranceandestates.com.
i dont understand why the 50,000 wasnt removed from the policy.
Doesn't taking a loan of 50,000 reduce the death benefit as well as cash value? If yes, how can it be still "sitting" in the Policy?
Great observation. The policy loan does NOT reduce the cash value which keeps on growing AND earning dividends generally. The death benefit would be reduced if the insured died with an outstanding policy loan.
Could I rollover my pension which I have from a former employer into this type of Life Insurance policy?
Hello, this product/strategy is not available for rolling over qualified accounts. However, qualified annuities can be used in this manner.
Can you tell me who offers cash value life insurance with infinite banking policy
Iâm very interested
Hello John, a great next step is to request a call with our IBC pro Barry Brooksby by emailing him at barry@insuranceandestates.com.
Hi I'm interested with this. Can this be done even though I'm from the Philippines?
Thanks for commenting! In general, all aspects of the sale: solicitation, application, UW, policy delivery must be completed in the US and these transactions are scrutinized due to regulations.
Can this be accomplished today in this market
absolutely
Yes it certainly can. Actually it's a good time to illustrate high cash value policies because it is very conservative due to low rates. These companies have paid dividends through hundreds of years through all kinds of economies.
I was wondering the same thing because there was a guy that's been trying to sell me annuities for the past 8 months, and of course, the market keeps changing, and to my benefit, I bought a lot in April so now infinite banking looks a lot better than an annuity.
Make sure you're aware that insurance "dividends" are NOT the same as investment "dividends". The IRS does NOT consider them the same thing, which is one of the pros AND the cons.
Well said, the pro is that the different definition applied to whole life dividends = favorable tax treatment. I would contend that that âconâ would only be semantics because similar mechanics are at work with both types of dividends. Company does well = dividend.
@@InsuranceandEstates It depends on the investor. The con can be opportunity cost on the rate of return. If I'm looking at it as an investment vehicle, im essentially paying a "fee" for reduced (depending on one's metrics non-existent) volatility(as well as tax portections). That "fee" can be overall rate of return as compared to other investment vehicles. But that's where the goal of the IBC policy becomes important. It's not designed to be a pure investment vehicle and I think it's important that people understand their goals and the goals of an IBC policy in general.
What happens if you are not as healthy. I was diagnosed with MS. I am fit and not disabled but would this apply if someone that has a diagnose
This could impact your outcome, medical information and application would be required to know the actual impact.
How can we reach you for more information?
Go ahead and connect with Barry at barry@insuranceandestates.com for next steps. Thanks:)
No lost opportunity but you did lower your total return by the loan cost. Really paying more interest (principal) has nothing to do with the loan other than a mental thought. You are adding 1:1 more principal into the policy. Yep, the capital growth applies to it, too. Great. The withdrawals are loan proceeds that she deposited into the policy by premium payments. Once withdrawal hits basis, it's taxed as ordinary income. Policy design is key. The DB, PUA and uninterrupted capital growth are the cash differentiators, other perks - no credit check, no set repayment schedule, are nice, too. Still can't get my mind around stealing peas during retirement, though. Feels like I'm looting the policy.
Good comment, I think the peas concern depends on the goals. Often, policies are designed to start loan withdrawals at a certain age and not having to pay back the loan is key. Loans deducted from DB.
What if a client wants to deposit 2.5 million a month. Is that possible?
Thanks for your question Willona. That would obviously be a massive premium and whether it would be allowed would be a function of determining the proposed insuredâs human life value, and the calculating the MEC limit based upon it, and using PUA and a likely a term blend, to maximize the cash value. Depending upon the goals folks will sometimes do a MEC intentionally. These are sophisticated strategies that need to be analyzed with extreme detail and calling for sophisticated expertise. Hope this offers some direction. Best. Steve
How much wholelife insurance should be purchased and the cost per month?
This will be based on your goals, income, budget, etc. See our other reply about connecting with Pro Team IBC Coach.
13:11
Absolutely!
Hi is this possible in the UK
I don't know if it is possible in the UK.
Are your payments taxed. You don't pay taxes on borrowed money.
Correct, most of the time, policy loans are preferred to withdrawals for this reason.
Can this be done in New Zealand
Hey Ross, am not sure if you've found information on this question. I'm not sure what New Zealand offers. Canada has some options yet many countries do not.
I got an American national you think that one will work
Hey Ruben, thanks for reaching out. Our Pros donât currently work with American National and so I canât comment other than to say that it looks like they have both whole life and IUL products. Whether your policy works is largely a function of your goals for the policy as well as the design that the agent prepared. You may want to have comparison done to get a better idea of what you have. If youâd like I can have either Barry or Denise reach out to you. Just email a request to me at steve@insuranceandestates.com. Best, Steve
Can I Pay my expenses from the IBC?
Thanks for reaching out! With those kinds of detailed questions we recommend you connect with an IBC pro team coach to look at your own options, numbers etc. Both Denise and Barry are fantastic and you can access their calendars here to request a 1-1 zoom or call: www.insuranceandestates.com/proclientguide/introduction/
Too bad i was almost 50 when i found out about this.
Thanks for commenting. Almost 50 is not too late and yet this is why weâre passionate about getting this message out.
Is our way money maestro Smith from Chicago my main source social income is that I'm a Barber..
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Im so confused. So I can just take a loan on my cash value? Dump it back into the policy, and since my police APY is higher than my loan rate i can just keep running the money around in circles?
The clarification is that you arenât running your money in circles. Thinking differently about money is key. All capital has a cost including cash in the bank. Using a high cash value policy in the ways discussed gives you predictable positive momentum through both a guaranteed return and dividends which are not guaranteed but have a 150 year track record for top companies. Policy loans offer a way to utilize cash, yes paying a modest APR and yet allowing the cash value (full amount) to keep earning (positive momentum). Thus, utilizing policy loan funds offers true financial leverage and affords continuous compounding growth with tax advantages to boot. The banks already adopt a similar approach to utilizing your money on deposit, leveraging it many times over. The other aspect of this is that frankly your money is in a safer place than a bank account. Hope this helps clarify.
@@InsuranceandEstates what exactly is the best policy co with the highest intest rates and dividens. I ran one thru state farm today but the guy said they only pay 2.4% yield. Their loan rate was 2 so I'm still running a .4% positive carry. But that interest rate is still super low.
To be clear I can't adjust my whole life policy premium up or down as my income fluctuates? That's what the guy said idk just want to clarify before I go with something
@@InsuranceandEstates also how long does it take to access funds once I need a loan on my cash value. Thanks
@@toddmichael8694 it would depend on how you choose to fund your policy. Would need to connect with an expert and run some illustrations. Email barry@insuranceandestates.com to request a call.
@@toddmichael8694 State Farm is not geared toward this type of mutual whole life policy. Your preferred company may vary depending on your scenario and goals and Barry can show you a few top companies and returns, both guaranteed and non guaranteed.
What carrier is this?
Hey Chad, we continually research top carriers and thus donât tend to feature them in webinars because they can change and this âdatesâ the webinar. Best way to learn about carriers is to schedule a video conference with one of our experts. You can email Barry Brooksby at barry@insuranceandestates.com to start that process.
Why would a person take an income when they can borrow any needed money.
True! And you keep your cash value working this way.
I'm 52 and I just found out about this type of policy is it too late for me to jump in and purchase this? I'm in good health so I don't see that being an issue.
Hello Michael, thanks for checking in. Yes if youâre in good health there are great options to start one of these policies. As a first step go ahead and connect with Barry Brooksby at barry@insuranceandestates.com to set up a phone call. Best. Steve
Is it too late for me, I am 67?
Itâs not too late based on your age. See other comment about connecting with an IBC Pro Team Coach.
It costs a person 25% that goes into your death Benefit?
đ€
So where's a step by step on how to get started?
Best opportunity for a step by step is to connect with barry@insuranceandestates.com to request a call.
Step one. Buy gold.
Step two. Buy more gold.
Step 3. wait.
You could buy something like gold with a policy loan vs your cash, thereby potentially increasing your ROI substantially.
There are times in history where gov has taken away all the gold. Making it illegal to own.
@@613pics I have news for you absolutely nothing illegal about gold. You better check your history, it's when government confiscates gold is when it's illegal to own.
@@michaelb.8953 exactly right! when the gov confiscates gold which they have done in the past. They threated you with jail time for owning it, and huge fines. Making it illegal.
Problem is getting medical exam đ€
There no exam options to check out depending on health, product and other factors.
The thing is, you didn't zero the guarantee side, while you zeroed the non-guarantee side.
Right! With a proper illustration you would zero the non-guaranteed side ( in the interest of being conservative) because it is based upon dividends (notwithstanding a 100 yr+ history of payment. The guaranteed side wouldn't be zeroed out, as this is what it sounds like, a guaranteed return. I hope this helps and thanks for commenting.
@@InsuranceandEstates are you saying this is a cautionary tale?
DS Domination Dad, not at all and Iâm not following your thinking. These policies are illustrated very conservatively using the guaranteed returns only. There is nothing mysterious about it unlike other kinds of policies or other financial products.
@@InsuranceandEstates That's what I was thinking, ride with the guaranteed, and let the non-guaranteed be the easter egg.
Good evening, I am Anna, a 65y.o. How can I start at this late stage in my life.
I have a few questions I'm 43 years old and I want to start my own truck accompanied by the very interested and put my money into something where it can compound so do I set up a number so I can reach you guys so We can talk and Then I can decide
Hello Charles, thanks for commenting, a great first step is to email Barry at barry@insuranceandestates.com to request an initial call. Best, Steve
Sound like a gimmic
Because someone else told you that. I encourage you to do some research into high cash value life insurance. If youâre inclined you could check out the actual balance sheets of major US banks and corporations and find massive portfolios of life insurance used in this manner. This is a concept and a strategy involving section 7702 of the IRS code, adding extra cash to a whole life policy.
I learned about high cash value life insurance as a practicing estate attorney. This is not a gimmick. Itâs simply adding extra cash to a whole life policy due to the tax advantages and compounding. Too bad we live in a time where people canât apply themselves and research difficult concepts. Aim higher.
Hello do you have an email address
We do, you can email us at info@insuranceandestates.com