The Infinite Banking Concept

nelson nash

Infinite Banking Concept - Being Your Own Bank is Part 2 of The Infinite Banking Concept Series. Go to the end of the article for the rest of the series.

This concept is a strategy coined by Nelson Nash. It allows individuals like you and me to function like a bank.

Banks come and go but this strategy is sound and has been in force for many years. Now, you are about to learn how you can bank on yourself and recapture all the interest that you pay to financial institutions.

What is it?

The Infinite Banking Concept is a process and not a product. It has nothing to do with investing but everything to do with financing. However, when this strategy is combined with a product that gives you control over your money, it will beat any investment system.

Consider this concept: You finance everything. This simply means that you either pay interest to someone else (bank or other financing institution) or you give up interest you could have earned otherwise.

This is why this process is so powerful. It helps you accelerate your wealth by you becoming your own banker and not giving up interest earning potential.

Your Infinite Bank Account

infinite banking concept Photo courtesy of mbrand

  • An Account - You open an account, and make monthly, quarterly, or annual deposits into your account.
  • Guaranteed Growth - The cash in your account grows at a guaranteed rate. You also earn dividends.
  • Borrowing Power - You also can borrow against the money in your account in the form of a policy loan to buy cars and homes, pay off college loan debt, or anything you desire! There is no credit check and no qualification procedures.
  • Continued Growth - Since loans can be taken against the cash value, the money in the account stays put and it continues to grow. It is acting as collateral. You pay back the loan with interest but you are paying your banking system back the interest and not to the credit cards or mortgage companies.
  • Tax Advantaged (a critical tax saving tip) - This account allows your money to grow tax advantaged, which is better than tax-deferred.
  • Shelter - The money in your account is sheltered from Uncle Sam. You use seed money (taxed money) rather than giving him your harvest money (pre-taxed contributions pay tax at the end).

The Infinite Banking Concept is a strategy that has been used by banks, wealthy individuals, and large corporations. There is one product that can implement this strategy most efficiently and effectively. You may be surprised.

But before we reveal what type of product you use for this strategy, be open-minded. The following product is something that most popular financial experts dislike. However, these so-called experts are not aware of this type of product, as well as many individuals in the financial services arena.

But there is more to the story than they know. Banks, large corporations, and the rich use it to grow their wealth. But, you do not have to be wealthy to take advantage of the strategy.

Refrain from your knee jerk reaction. Remember, financial products are neither good nor bad. The process, plan, or strategy is always more important than the product.

Dividend Paying Whole Life Insurance

  • Your whole life insurance policy is the account you own. You pay premiums into it every month, quarter, or yearly. It is structured in a way where the cash value can grow at a rate where you can access it quickly.
  • You contribute after tax money into the policy. It grows tax advantaged, one of the advantages of whole life insurance, with guaranteed cash value increases and dividends.

    PUA Rider

    The additional death benefit that a premium paid to the PUA rider is the only amount of death benefit that premium can buy. This makes it less risky for the insurance company. Thus, they allow the cash value in the PUA rider to grow quicker, turbo-charging your policy.



    The dividends can be paid out to you or redirected back into the policy to purchase additional life insurance. The Infinite Banking Concept takes advantage of the latter.
  • PUA Rider - The Paid-Up Additions Rider is a rider added to the policy that allows the owner to make additional contributions over base premiums. This money purchases additional life insurance. The cash value within this rider grows at a faster rate and actually turbo-charges the policy.
  • The policy gets better and better the more you borrow against the cash value. This is because you are paying back the banking policy with interest. If you are able to pay back the loan faster, which is highly recommended, you can accelerate the growth of your policy even faster.

Is it risky?

If you are searching for wealth without risk, then whole life insurance polices may be for you. The way they are designed make them more efficient over time. The reason is because as time progresses, the cash value within the policy will meet the death benefit, decreasing the risk for the insurance company.

As Nelson Nash will tell you, there is risk in NOT taking advantage of this process. You should be in at least two types of business: your current occupation and banking. The Infinite Banking Concept gives you the power to create exponential wealth in a guaranteed, safe, and secure manner.

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