The Infinite Banking Concept Explained

What is infinite banking? It is often misunderstood and not easily comprehended. We’ll break down exactly what infinite banking is and how it works.

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[hilarymcclure]

You guys need to redo this episode. You're awesome, and trying to accurately inform, but you missed the most obvious, central feature, which is what happens when you do the right thing with a policy loan. First, you get a policy set up properly with high, early cash value. Maximized paid-up additions, maybe a term rider. You borrow all of that CV immediately, within the first 30 days, and you invest it in a high-earning asset. At minimum, a 12% index fund or real estate investment. Maybe collateralized private lending, note investing, rental property, lots of possibilities. If your carrier is non-direct, all of your CV is still in the policy earning the dividends, because you borrowed out of the carriers general fund, collateralized by your death benefit. Your dividends should be slightly more than your policy loan interest. And whatever you could have done with your outside investment under the term-insurance scenario, you can do with your policy loan funds, but you're getting the tax-free CV growth and the life insurance coverage as well. The way you laid it out, you weren't doing anything with the policy loan. What were policy loans for? Jet-skis and Cessnas? Well, maybe... if you were doing charter flights or a jet-ski rental business, but you shouldn't take policy loans to purchase liabilities. You could be earning 15 to 40 percent on your policy loan while your CV and DB builds, if you do it right.

[matthewmaurin]

I really loved the part where they explained infinite banking.

[moreyouknowcrypto]

I understand the fees & low average rate of return but whats the value of being able to borrow from yourself?

[hisagisan]

I don’t know why these guys compare term to whole life. They’re different products. And yes being self insured sounds great but most people don’t have $1, 000 to they name and will be in a similar situation in 30 years.

[ericwiener]

I like the channel.

I'd love to see you guys have a conversation with somebody like the Better Wealth podcast guy. I don't feel that you are ever talking about the person who would/should use this kind of product.

[PW]

Some insurance companies sell term that has an option to convert to whole life if it is also one of their offerings. I would say buy those, and convert if you ever decide you need whole for whatever niche reason

[Colyers]

Never heard of it. Have no interest in it. But now I'm educated in it. Thanks ;)

[EstevanMontoya]

Tell you don't understand whole life without telling me you don't understand whole. A lot of ignorance in this video, and the comments.

[sidra_games]

My investment account at etrade is a margin Account. Same concept, no whole life required. I can basically borrow up to half my investment balance at any time. But the rates aren't the best. Worse than a mortgage would be but way better than a credit card.

[nagarajagaikwad]

Have you guys read Becoming Your Own Banker book by Nelson Nash?

[rustyelder]

"Buy term and invest the difference." - AL Williams - come on guys. It's rebranding and the market killed this idea a long, long time ago.

[Pjeski]

Sounds like a scheme an insurance sales person would come up with. Good for insurance salespeople and insurance companies, creative marketing. Thanks for exposing this scheme.

[larsdove]

Sorry guys you obviously don't understand IBC. You're way off talking about rates of return. It's about a pool of capital that you control and finance purchases from your own bank instead of the traditional banking system.

[fugerep]

Too many people are opining about subjects they know very little about, and people eat it up. This is unfortunate. We pay $151, 000 per year of dividend-paying the whole life insurance premium. I'll likely add to that amount this year. Why would I behave like this? If you haven't listened to the Wealth Warehouse podcast or read the best selling book: Becoming Your Own Banker by R. Nelson Nash, you should consider doing so.

[firecraig]

Hey Money Guys! Whole life insurance does more than just death benefit. 🤦‍♂️

[tricord]

“There are often a lot of very expensive commissions” Compared to what?

[a-borgia]

Bo says "half" of the policy.... First slide does not include "profits and commissions"... 100% of the premium does not go to death benefits and cash value.

[BradyPuryear]

You guys didn’t explain infinite banking. As someone who thinks it’s stupid AF we need folks with big channels to actually explain it showing how it’s pitched in extensive detail and then why it’s a bad idea.

[jonathangamble]

There are a lot of arguments for Universal Life, would like to hear the opinions on it as it is different than Whole Life.

[linnyh]

The consumer report 1.5% return figure does not include dividends, it is merely the guaranteed net interest return. Dividends from top mutuals push it up closer to 5% tax free even after 15 years of near zero interest rate environment. As rates have gone up, assuming it doesn't come back down to zero anytime soon, the dividends will go up as they have historically and should push it closer to corporate bond yields since the foundation of whole life dividends is long term corporate bonds that's supplemented by institutional business profits. Get your facts right.