The TRUTH About The Infinite Banking Concept!

What are we really dealing with when we include the

concept

of

infinite

banking

into our arsenal of tools and weapons? If you're welcome back to the VIP financial education YouTube channel, where we help you go further financially faster while staying safe in the process. So this is today's episode guys for my right emcee, lobster expert on the

concept

of

infinite

banking

and how to become your own bank, a super powerful tool, one of the most popular debt weapons that we show here on the channel, so I'm always looking for tools. that can help us achieve results in an accelerated period of time, but I don't want to risk it all and I'm not willing to risk all that and that's where these types of debt weapons are and every time we discover one I'll share it with you and there It's where MC has been willing to come and teach now that he's the founder and host of the Cash Flow Ninja podcast.

It is based in Pennsylvania. I really appreciate that they obviously made the trip. We're going to start diving into the meat potatoes of this kind of incredible idea that was really brought to light by this guy, our Nelson Nash, so I just want you to take the show today and just share it. What are we really facing when we contemplate including the concept of infinite banking within our arsenal of tools or weapons, so to speak? And that's a great way to start the conversation. It's the framework that we use correctly, so there are four pillars that I talked about. quite a bit and I'll start with that to show you exactly where it's going to fit in, so the first board is cash creation, we all have to make money, yes, using our intellectual and mental capital or a relationship capital that will translate into financial capital. or we do it through our jobs, we do it through our businesses, that's cash creation, the second part is cash capture, that's where we capture the value that we actually create, so there are a couple of ways in that we can do it, you know, this is this.

It's basically where the capital will reside, although there are a couple of places where we can put the capital. One of the places is the banks, we talk about the status of the brokerage accounts, the qualified plans and then we will discuss and get into the insurance companies and the life insurance companies, that is the second part, the third part, is cash flow creation, which is really taking advantage of where capital is placed and leveraging that to invest in assets that produce cash flow that we love, yes, absolutely, and then guess what flies the cash to go somewhere where we put the The cash flow that these assets create goes back to cash capture, the fourth pillar is cash control, which is a tax strategy, which is important, the right taxes or the biggest wealth destroyer , asset protection and then of course legacy planning is the type of state planning.

I just wanted to share that framework for us to be our bank, if we're going to build a bank, our cash flow management system, where does it fit, does it fit with cash capture, yes, the second pillar and we use a dividend that pays a total life insurance. policy with a mutual insurance company to store our cash now. I just wanted to share what is the difference between a stock and a mutual insurance company for your viewers, so stock insurance companies or companies like for example AIG are listed on the stock exchanges and the owners of that company Surely they are the shareholders, they are the shareholders, so they are still in the casino on Wall Street and they managed to generate profits for Wall Street, so there is still the mentality that they have to do things to generate profits for that more people buy their shares so that stock insurance companies now there is another type of insurance company which are mutual insurance companies mutual insurance companies are not listed on the stock exchanges, they are outside of Wall Street and the owners of a mutual insurance company are actually the policyholders, who are the shareholders, similar to the credit union versus a banking right.

Yes, so an insurance company manages the company on behalf of the shareholders, who are the owners of the policy, so I like the fact that the interests are aligned. As with policy owners and mutual insurance companies, then minimize any potential for abuse. I mean, your goal is to make a profit versus the benefit of exactly everyone trying to operate it, and these mutual insurance companies have been around for hundreds of years. Over fifty years, many of them have been very profitable, most of them have paid dividends which we'll get to in a second for over a hundred years in a row, which basically means they've been profitable every year, through the depressions. accidents, I mean, think about the 2008 loss, most of these companies didn't bat an eye, so they've been very well managed, very well managed and they've had a history of over a hundred years, so the mutual insurance companies insurance is where We created this specifically designed dividend paying whole life insurance policy, so when I mean specifically designed, this is not the standard retail whole life policy that you will buy in the market, these are the policies that are designed to get maximum cash value because the goal One of these policies, in addition to having a death benefit, is to find a place to store money to put it and there are several reasons why we would choose a whole life insurance product with a mutual insurance company. whole life insurance product that pays dividends and the first thing is the guarantees, there are guarantees according to the principle that you would put in the policy, there are also guarantees on growth, some of them have four percent over the life of the policy, so there is a guarantee on that guarantee on the principle, which means that you cannot lose your money, so the money that you have put there every year with the guarantee of its growth you will never see it, for example, you know that you have a hundred One thousand dollars. in the account right now and next year you open, you log into your client portal and you say, well, I'm only eighty now because something happened in the markets or outside of your control, so I can only make it grow. you can't lose it, yes, it grows, so the second and third part is because you are a shareholder of the Company, a policy holder, you can participate in the profitability through dividends that they pay annually at this time, that is not guaranteed, but just like you.

Although the first two are not, most of these companies have paid them for over 100 years in a row, so the other reason we like it is and this is one of the main reasons why a lot of people like it. love is the tax. free growth, money actually grows tax free in the sense that that policy, so it's not like a qualified plan where taxes are deferred, so our philosophy on taxes is that we try to pay legally just taxes on the seed so that we don't have to pay taxes on the harvest, then we pay taxes through differences where we limit the amount of taxes we pay through strategies that we employ now and then we put money in the policy so that this does not be one of those vehicles where the money you contribute to it will be tax deductible, for example, the other part that I really like is that it is a private contract between you and the insurance company, which means this is not something that is public information, which also leads to the next where There is asset protection for this vehicle, so life insurance and specifically whole life insurance in most of the United States and all 50 states have some type of asset protection, so check which state you live in and which one you own. on what the laws are, but in most states it's data, it has asset protection, which is very, very important, if you think about it, the world we live in today is very litigious, so if you have a car accident or something, and now Someone got seriously injured and now there are lawsuits about what they can access from your assets if you only have a bunch of money in your checking account and your personal account that is now open to two people, so That's the other part I like. and then I love the fact that it has the death benefit, so you could look at it in the sense that it pays a multiple of the value of the account compared to a 401k or an IRA, let's say if someone has a 401k, if that person If you die, not only will the beneficiaries have some tax liability on that, but that is the money that they receive, where in these policies you will have cash value in these life insurance policies, but you will also have the death benefits or when you If you pass away, let's say you have $500,000 in cash value and 2.5 million in death benefit, they get the 2.5, which is a good multiple of the account value because you don't lose the cash value when you die, right, you get the you get the death benefit, you get the death benefit, but what about the cash value?

Well, we look at it as a multiple of the cash value because you have 500,000 there, but you get 2.5 million because of the death. right profit so you won't get the 2.5 and then I mean it would be really nice if you double dip right so check out the cash value you're getting win the kill. Better, you'll get the death benefit, so you'll have a 2.4. In that example, 500,000 is included, but you get 2.5 of our benefit tax free. What is the most common death benefit one would request from an average health standpoint? What would I, as an average healthy 41 year old man, request with the death benefit?

Because my understanding of this as a debt tool is that the death benefit aspect is being as underfunded as possible so that the cash value can be as overfunded as possible, with the death benefit actually being kind of a cherry on top. . Also, if you want, am I looking for more types of supplemental insurance over the term to get to where I need to be with that gap or am I accepting the fact that you know if I have half a million dollars in my cash value I pass away, I have coverage of half a million or a million dollars, yes, it is at least as much as I entered.

I'm not really losing money similarly to some of my other retirement accounts, but there are also tax advantages too which would be one reason the most common rate, I mean, two and a half million sounds like a lot. I guess most people don't have that kind of coverage, it's that true, so years, years. We could look at it, so the first thing is that you are limited to the amount of money you can put into an insurance contract based on your income and your net worth, which is why every year you've heard people increase or add another policy.

Why would they do so well? You are limited to the amount of premiums you could put into a policy based on your income and the death benefit, so as your income increases and your net worth grows, you can add more coverage so that the other question is also: Do you know what I would like to do? What type of strategy exist? Other strategies exist and their strategies and one of them that I use personally. For example, let's say you are a thirty-year-old man and you earn a hundred. a thousand dollars a year, let's say you're even married, right?

You have a spouse, you have two small children, with that hundred thousand dollars you could put in twenty-five thousand dollars in premium, basically it's just a rule of thumb, I mean, it's just you know They're different providers, they look at these things differently, but that's just one way to measure it, there are potential gains that could be protected through this right, so let's take a hundred thousand, this guy who has a family of two. small children, the income potential over the next thirty to thirty-five years could be three million to 3.5 million, so how do you achieve two things, how do you build an efficient infinite banking policy, a banking policy and how you get the Basically, the protection of potential earnings so that if something happens right to them, the hundred thousand income doesn't go to waste.

You know you don't exactly lose earning potential, so you can use convertible term insurance to supplement that, so let's just and that example says these potential earnings are 3.5 million and let's just say that the bank policy has a profit death net of a million, there's still 2.5 million that are short, so if you pause at that point and it's your spouse with the two kids, you actually get a check, you know, for a million, they're not in a very good situation at all. They don't compare me to him being alive now exactly, so how do you overcome that?

A convertible term can be added for those 2.5 million, whose termobviously you have a from a cost point of view, it's much more affordable, so now you can combine the two to have an efficient bank policy and an efficient term policy to protect full insurability and if you think about it, that It's a good part of essentially buying your net worth. because if you think about the earning potential that that particular individual has his 3.5 million at that moment, then you know that those are his potential earnings that he can now buy and focus on producing and creating, you know that he knows that if something happens, be careful and I just think about myself too, you know, have the peace of mind knowing that I have things set up that way, that if something happens to me, my family will take care of it properly, that allows me to focus on producing and creating in the ability that I provide value to the world, so obviously God forbid something happens to you, so we see it as we go Suppose that all we still remain alive for many years, right, then how can we have our cake?

You need it too, how do we get the benefit in life from this? The term does not provide, but also the entire life policy. In comparison, the child and banking aspect can be considered or often criticized for being very expensive, so you are paying where you do not have access to the cash value immediately. It's almost a forced savings account, but we're forcing a savings account that's actually worth less than the money you invested, and so from a first impression standpoint, my first criticism would be that it seems like I'm paying the agent's commission cost first in the early stages.

A couple of years, obviously, I have to cover your expenses. I have to cover the other agents that you know do the work, yes, but after overtime it seems that this tool becomes much more valuable and that the overhead fees associated with your work or other agents' work is actually much higher in other investment vehicles out there, it's a fair interpretation because it appears that within five years, ten years down the road, the negative aspects of engaging in an infinite banking policy start to diminish. Yes, am I understanding that is correct? Yeah, that's when you look at infinite banking and that's how you'll know if it's a good option for you or not, so the first thing I talked about was the long-term view, the big picture, looking at things in a big way.

From a general planning point of view, what do I mean by that? If you focus on the next five years and that's all you can see, it probably won't be a good fit for you. I agree, but if We're focusing in terms of 10 20 25 and 30 years, it's extremely powerful and I know we'll talk about some case studies and some examples of that, but it's extremely powerful over the course of an extended period, I I would say they know. It's not that it can't already be powerful because these policies are structured correctly. You know, again, the cases are written completely differently, so there are different ages, different underwriting tables, etc., but what we try to do is have at least 70% coverage.

Premiums available in cash value earnings of 1/2 year, so you have access to substantially more money than you would have in other types of traditional retirement accounts before being penalized. I mean, go into a 401k, go into an IRA, often I don't have access to Santa - the liquidity either, which is also one of the advantages of this tool, is also correct. Yes, the liquidity of the money within these policies is available for you to use at your discretion for whatever you choose, whether to purchase. cars, whether it's investing in real estate, it's at your discretion, you have access to that liquidity, which is the big benefit and also the other thing that you mentioned to the agent, commissions and fees and that type of thing.

How I see it personally because like my own cooking is that there is a price, cost and value for everything you do, there is a difference, there is a price that something is a sticker price, there is a real cost of something and not doing something and then there's overall value and by the way, advisors, I talked about advisor performance, right? I look at people and most of the people in my network that I use, whether it's a tax strategist, an individual and an asset protection professional, there is a return to that advisor and many of them my returns are in order.

If you think about it from a tax point of view, I would look at price, cost and value, so if you can see the value that this has from a general perspective, for me personally it was a no-brainer, other people might think I'm not agree, and I'm happy to have conversations with anyone. Well, I think sitting back and looking at the math, I mean, it has to make sense in terms of return on investment, yeah, so let's talk about who this isn't for because I always have been. convinced that this is not a great tool for most people.

Yeah, we actually had a really interesting conversation about entrepreneurship and apparently we share a lot of the same views regarding the idea that most people really aren't good candidates for, you know, starting and building a business. and I think it's good to be ruled out, sometimes early, save me the time, why should I go down this rabbit hole trying to understand something if I can almost immediately understand that something is not good for me? Yeah, so let's back up. a minute and let's talk very quickly who would consider themselves excluded from this immediately, first of all internationally, for policies to be designed the way we're discussing it now, you have to reside in the United States or Canada, okay For most of the world, they don't necessarily have the mutual insurance company established and structured like in the United States and Canada, the principles that they can still use in other vehicles that we are discussing and perhaps this they could obtain.

Creative, try to find vehicles with the same type of benefits, yes, the concept of debt weapons in general and using different tools to advance financially is universally applicable. I would say yes, yes, and that's fine, US and Canada. age ranges against just from the limited knowledge I have it sounds like you know health is a major concern right yeah the older we get the less healthy we are I mean I realized that by the time I turned 40 and I fell walking down the street and broke a couple of ribs, right, okay, well, now I'm obviously fragile, so I want to understand if this is still good if you're north of 40 if you're north of 50 if you're north of 60 in what does this become too expensive for the insurance part?

It would be better if I invested my money in something else. There are basically three types of stages, I would say, that people are in, so the first stage is that there are young people who are starting out. They have a lot of time, but they don't necessarily have a lot of resources or money, and then the second part is the people who are now, let's say, in their 30s and 40s, maybe even early 50s, and are in their prime earning years. statistically they are between 45 and 55 years old, so they are in their best earning years, they still have a lot of time and now they have resources to implement, there are different strategies for the first phase, there are different strategies for the second phase and then the third phase It's people who are in their fifties, in their sixties and then also in their seventies, now they don't have a lot of time but they have a lot of resources, there are actually a lot of strategies that they can use and incorporate something like this into what they are already really good at, so there are a lot of money moving out of brokerage accounts, for example, for retirees, let's say you're 60 years old and most people, if you listen to the experts and the crystal ball business, would say: We're at the top of the market and there we could have rough weather or rough waters, instead in the future they would take money out of there to say a brokerage account in insurance policies and create a private pension for themselves through the policies on how they are well structured, so it's something worth considering, obviously it's a potential transition to protect against volatility and continue to recognize and ensure that there is growth because, as you said, you can't lose, you can only go up and they have been paying. for a hundred years, so it seems like a pretty short bet, what are the typical ranges of growth rates?

I mean, what do you see in terms of the returns of these policies? The life of the policy and then the dividends are typically between six and seven percent right now, historically quite low from where we are now. Well, that seems pretty favorable. So the US and Canada sound like there is a consideration in a pretty diverse age set. ranges yes, it's worth at least sending an email, yes, what about income levels? Because we know that this will generally require consistency based on cash flow. Many of our coaching members swear by this tool. We know it is important to us. participate to maximize cash flow, so that affordability is optimized and still have all the additional headroom needed to participate in all the goals we are working towards, i.e. what is the typical percentage of cash flow net minimum? numbers of a specific dollar amount, let's say every month so someone would really consider this, consider starting with that.

I mean, I find it hard to believe that you would say, oh, someone who has $500 and monthly cash flow left over should dive into a lifetime. policy where they consume most or all of what they have left, I mean it's too risky at that point because if you stop making payments on your policy I guess it will lapse and you will lose the cash value and the death benefit , I mean, yes, you throw everything away if you can't afford it, that's true, yes, there are certain people who are just starting out or maybe reorganizing their finances and building up savings, etc., what is this? suitable is for someone who could save basically ten thousand dollars comfortably in a policy like this and what we usually talk about also is that you know if you are saving, if your savings is twenty thousand over the course of the year, then you know. between 15 and 10 thousand dollars could be a good starting point and analyze part of this policy correctly: ten thousand annually, yes, divided into monthly installments, yes, not ten thousand in an initial payment, yes, yes, which, as You very well know, It's a tough number for a lot of people in this country right now.

We're fortunate to attract a smart audience that's doing well overall, but I'm sure there are members listening to this right now who are still trying to make it. stand up and it would not be the appropriate time to consider this tool. This tool requires that you be in a comfortable enough position to afford it. It's a little bit different than some of the other debt weapons that we talked about, obviously, a lot of them. Those debt weapons require an application to be approved, which obviously means you have to prove that your finances are strong enough for other, more traditional lending institutions to approve your application, so it's not like you can be bankrupt and get those other tools. although you don't have to put as much money up front as you do monthly into this, so it's almost like a forced savings plan with a much higher return each year, right, a tax advantage, it's there.

The inherited advantages of this, all of those features are tremendous, not to mention you have the liquidity factor where you have access to the money, but it continues to grow as if you didn't get it right, yes, and so it will pay you back. Basically, you keep the loans within your own family and that's the power behind it, but I think that helps a lot. Are there any other real black and white examples where you say if you fall into that category, it's better? wait or this just isn't the right tool for you, yeah I would say if like I said you restructure a lot of your finances, are building up your savings etc this wouldn't be something you would jump on This is more for someone who already It has built, I would say, restructured, it has an infrastructure basically for savings and money, and I have already saved a little money, so I would say it would be a good option.

I think you know some. Things like debt can be very powerful, same with life insurance, but used in the right capacity, with the right knowledge and in the right circumstances, this is exactly the same. Great, guys, if you want to get to a position where an infinite bench policy can fit your game plan. Be sure to book your one free coaching session through VIP in the free Coaching Calendar communication for those of you who are ready to take off and get your money under control with a very advanced and easy to follow roadmap. you can go ahead and sign up on that same website for an ongoing training plan with VIP and then we'll discuss further.Close your circumstances together to determine if you are a match and, if not, when we simply reverse the cost of tuition, we avoid membership for now we determine when it will be a better option, but at least we can put them on the right path so they can benefit of this now if you are already experts in ER, you have your planning order, it has been working for you.

If you have extra cash flow, this could be a great place to expand and start accumulating more tax-free wealth that will help not only you but also future generations and your family, so send an email. ninja at VIP Financial Education com again, you can email again Ninja at VIP Financial Education Comm, we will pass it directly to the MCS team, these guys will take good care of you and like I said, it's the same style we have here at VIP not solicitous, he always cares about you and your family's future first and before worrying about you, he knows that his own salary, as a result, he always values ​​first, so if you haven't watched Cash Flow Ninja, the podcast that could listen, the boys got over it. 500 episodes with some of the most well-known and popular experts and specialists in the financial world so that you too can generate wealth by learning from him and make sure that your subscriber to this channel we will go deeper into this and continue to unpack. himbecause I love this tool and it is one that for those of you is a good option.

I want you to get it and get as much knowledge as possible, so we'll see in the next episode guys, until then, have a great day. Take care of you