How Much Can I Put Into A Policy?

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Recent Episodes from The ABC's of IBC

Getting Better No Matter What

“Not too many people are familiar with the concept of getting better no matter what, so let’s look at the airplane world for help. Imagine that we are going to make a very long flight on a Boeing 747, so we load it with all the fuel that it will hold. This makes it capable of flying about 10,000 miles. By the time we fly 8,000 miles, the plane will now be able to do things it would never attempt to at takeoff. This is because we have burned up an enormous quantity of fuel and the airplane weighs that much less, but the engines are capable of producing as much power as when we took off. Therefore, every mile that we fly, the airplane will get more efficient, and you can’t do a thing about it! It gets better no matter what! The policy is engineered to become more efficient every year, no matter what. There is an ever-decreasing net amount at risk for the insurance company.” Becoming Your Own Banker, page 22 - R. Nelson Nash

That bears repeating, so let's say it again - An ever-decreasing net amount of risk …which allows the insurance to share an ever-increasing share of the annual profits with their policyholders via dividend payouts and increases to the overall insurance coverage.

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wealth without wallstreet

enMarch 08, 2024

banking with life

Why Didn't You Sell Me More?!

When Nelson Nash ran into his “imperfect storm”, he always wished he’d put more coverage on himself as he would have had more cash value to access in that time of financial struggle. In perfect Nelson style he uses a comical story about his brother- which Doug and John expand upon in this week's episode.

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enMarch 01, 2024

wealth warehouse

What Is Your Cost of Acquiring Financing?

"If you were in command of the banking function, you do not have to go through all this (bloodletting). The Infinite Banking Concept does exactly that! You can make timely decisions. There is no cost of acquisition. You are in competition with others you must go through the (bloodletting) that has been outlined. Guess who wins?”

-R. Nelson Nash, Becoming Your Own Banker, page 68

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enFebruary 23, 2024

Take #2 - What Is The Infinite Banking Concept - Revisited

After over 40 episodes we figured it was time to return to our roots and spend some time talking about exactly what the Infinite Banking Concept is at its core!

“now you are finally in business as a bank. You must make your bank known by lots of advertising and inducing people to make profit deposits to your bank. Why do you think they would deposit the money with your bank when they could easily do business with establish banks that have been there for years? Right! You were going to have to pay them something better than they are getting at their current banking connection.”

Nelson Nash, from, becoming your own banker.

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enFebruary 17, 2024

wealth warehouse

To Dump Or Not To Dump - Is There Any Magic To A First Year Premium Dump?

As with many things in life, there are no hard and fast rules. We have options. We can design a road forward in many meandering ways. If we can see the consequences ahead of time we may choose to avoid certain paths in designing the policy that is right for you. On this episode we discuss the consequences of dumping in a lump sum of cash in the first year of a policy. There is no hard and fast rule as to whether it's a good idea- but we think that in most situations it is a long term detriment and it has been unnecessarily hyped up by certain people in the IBC world as a way to sell policies to those that don't truly understand the Infinite Banking Concept.

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enFebruary 09, 2024

strategic tax advantage

What Is This "PUA" All About?

The Paid Up Additional Insurance rider, or PUA, as it's generally referred to is a critical component of policy design that allows whole life users to begin implementing the infinite banking concept immediately. We've discussed this wonderful rider many times in previous episodes, but are still getting a lot of questions from our clients on this, so we figured it was time to devote some more air time to this one!

“When using this type of life insurance to solve your need for banking, we will de-emphasize the immediate death benefit, but accentuate the banking qualities. (the cash values).The base policy will pay dividends and the PUA rider will also pay dividends. They should be used to buy Additional Paid-Up Insurance, which gives more meaning to the infinite qualities of the system.”

R. Nelson Nash, Becoming Your Own Banker (page 38)

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enFebruary 02, 2024

The Uncommon

For our 40th episode, we're going to challenge our listeners to RE-THINK their thinking. Enough said!

“So what kind of financial strategies should you be using in your financial world? Should you be doing the same common things that everyone else is doing? Or should you maybe be doing
things differently? The good news is that some of what I ‘know that I know’ is currently sitting in your blind spot. So, by sharing what I know, I hope to help you to expand that which you know. “
-Bryan S. Bloom, Confessions of a CPA

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enJanuary 26, 2024

Let's Talk About Rates Of Return

It's incredibly difficult to assess a financial instrument without first looking at "what's the rate of return". We've been trained to do this our entire lives.

Nelson really pushed the idea that the Infinite Banking Concept is not about rates of return. It is NOT an investment. It is a tax advantaged savings account with a truly unsecured line of credit, and a growing death benefit.

However, just to have some fun, your hosts decided to delve into the discussion of rates of return!

"...but, hardly anyon takes this into consideration. They all tend to look at the early years of the two methods and conclude "life insurance is a poor place to accumulate wealth. They couldn't be more wrong!" - R. Nelson Nash, Becoming Your Own Banker

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the infinte banking concept

enJanuary 19, 2024

nelson nash

banking with life

How Long Is Long Term?

Anyone who has read the book "Becoming Your Own Banker" is familar with the adage "think long term". Whether stated explicitly or insinuated implicitly, this concept pervades the book and is one of the building blocks of succesfully implementing and adhering to a lifelong practice of infinite banking. The problem that we see (and that we ourselves sometimes experience) is that most are not actually thinking long term, even if they think they are.

Join your hosts as they attempt to redifine exactly how long is long term. We had fun with this one, and hope you will too.

"I was educated as a forester, graduating from the University of Georgia in 1952. A large portion of the root thought of this concept is coming from the study of forest finance- the fact that you are dealing with compound interest over a long period of time with no taxation on the build-up." - R. Nelson Nash, Becoming Your Own Banker

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enJanuary 12, 2024

Buying Annuities Vs. Annuitizing Your Whole Life Policy

We received a question from a listener that we felt was worth deliving into- "Why dont you talk more about annuities?". It's not that theres anything wrong with annuities, but we feel that a properly designed whole life policy can essentially accomplish everything an annuity can while also providing a whole host of other benefits. That being said, it's not a cut and dry answer, so come join us to find out more!

"There are times when purchasing an annuity product instead of a whole life product is the only viable option due to old age or poor health condition. If neither of these two items are obstacles, a permanent whole life contract is the superior option because it allows the holder to "seed" the policy (s) with post-tax premium producing a one-of-a-kind tax-free cashflow that is second to none” - John Fox Ward.”

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