Creating Your Own Banking Solution Is Always Better!

The financial world today is full of many errors, and one that I hear often when speaking to other financial advisers is, “Well I can get a better rate of return here.” I could spend hours writing about the absurd claims I heard about rate of return, and how scary it is that some of these people actually control your money and your future, but I’ll spare you. Suffice it to say that you would be better of in Vegas than with them.

EVERYTHING gets better with my banking system.

If you’re familiar with my blog you know we speak of the concept of becoming your own banker, also known as the infinite banking concept, through the use of participating, dividend paying, whole life insurance. We over-fund and maximize a whole life insurance policy that leaves us with a self-funding pool of money that grows tax differed, and is drawn tax free, while maintaining liquidity, use, and control.

So the question becomes this, “what if I think I can get a better rate of return somewhere else, won’t that be better?” The answer is simple, you can have the best of both worlds. Interest paid on borrowed money for investment purposes is a write off, but by using your own banking system, or policy, you are able to keep the interest paid while writing it off aswell. What does this mean? becoming your own banker will always increase your overall gain because of the tax deduction…this is huge!

Do I still get dividends?

This is the best part. Because dividends are not paid based on cash values, I will always get the dividend whether I use my cash values or not. So not only do I get better returns because I get an interest write off, but I also get another “return” from money I was using elsewhere.

So the point I want to make is that whenever I use my banking system, I improve what I do. If I can write off the interest, I get better returns; if I borrow from my policy, I still get dividends.

The foundation for wealth is the banking process. Understanding these concepts will not only increase your actual net worth dollar for dollar, but you will increase safety, maintain control of your money, and stop worrying about losing money in markets like today’s.