Becoming Your Own Banker: The Infinite Banking Concept
October 19, 2008
Creating wealth is not about picking from a variety of products, as the traditional financial planner will have you think. Let me ask you something… if you could choose between Tiger Wood’s golf clubs or his swing, which would you take? Kind of obvious, but his swing. His clubs are useless without his swing. Financial planning is no different. Creating wealth is not a product, but a PROCESS. The process of becoming wealthy is enhanced by learning and implementing the concept of the infinite banking system. In essence, you become the bank for yourself, and your wealth will grow exponentially, without worrying about the loss of principle or interest.
Infinite Banking is a process that allows you to recapture the purchase price of any purchase you make and pay yourself the interest that normally would be paid to another financial institution. Many Americans are searching for safe ways to create wealth. At the same time these individuals search for products and investments with higher rates of return, they need money for things like cars, homes, medical/dental, vacations and so forth. The process of becoming your own banker is a way to utilize your capital as a bank would, but this time you are not only the banker, but the borrower.
By controlling your capital, loaning it out, paying it back diligently and honestly wealth is created almost by accident.
You need to understand that even using your own money and paying cash for an item has a cost to it. You either give up the interest that you could have earned by paying cash, often referred to as opportunity cost, or you pay someone else interest to use their money, there is no other way.
By becoming your own banker you pay yourself the interest, recapture the purchase price of the item, and keep complete control over your assets. Incidentally, use these banking concepts in a business structure and you gain additional tax benefits that make the concept even better.
By Becoming Your Own Banker you will dramatically enhance your wealth, just understanding how money can flow back to you, but by using the right vehicles, it will enhance the system and give advantages such as these:
Tax Deferred Growth
Tax Free Income
Income Tax Free Death Benefit
Collateral
Competitive Returns
Unlimited Options (Loans)
Unlimited Contributions
Creditor Proof
No Probate
Liquidity, Use, and Control
Passive income for Golden Years
These are very impressive, and by doing it right this can be accomplished.
