The ABC&#x27;s of IBC

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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

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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

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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

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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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enJanuary 19, 2024

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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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enJanuary 05, 2024

Seeding Your Future

Join John & Doug as they delve further into a topic discussed earlier in the year- convertible term insurance. When whole life premiums aren't a good fit for your current situation, but may be in the future, a convertible term policy is the solution. Lock in your insurabilty and know that you have the contractual right to convert to a quality whole life policy when your finances allow.

"There is a provision that allows you to convert your term policy to a permanent life insurance policy without having your health rescreened for pricing and issuance purposes. This conversion can be done within a specified period of time for an amount equal to [or less than] the amount of the term policy. There is both economic and emotional value in the convertibility of a term life insurance policy. Principle # 5: I want to get as much life insurance coverage as I can get, because there is not a large enough sum of money that an insurance company will issue that can fund the future that my family and I have dreamt of.” - Bryan S. Bloom, CONFESSIONS OF A CPA, The Truth About Life Insurance.

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enDecember 29, 2023

How To Select An Agent

The Infinite Banking Concept is a lifelong process, so the insurance agent you choose for your next policy will be your agent for as long as you or they are alive. It's a decision that shouldn't be made lightly. That agent is there not only to design and implement your policy, but also to walk that journey with you over the years- to answer questions, guide you on how to best utilize the policy, etc..

Join John and Doug as they provide their insights and experience into what folks should be on the lookout for when taking this step.

"Somehow or another, it never dawns on most financial gurus that you can control the financial envirronment in which you operate. Perhaps it is caused by lack of imagination, but whatever the cause, learning to control it is the most profitable thing you can do over a lifetime." - R. Nelson Nash, Becoming Your Own Banker

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enDecember 22, 2023

Capitalize, Capitalize, Capitalize!

Often times newcomers to The Infinite Banking Concept look at the ability to pay into the policy for decades as burdensome. If they are perceiving it that way, it is crucial that they step back and reconsider why they even want to do the Infinite Banking Concept in the first place. If you do not embrace the ability to pay premiums as a highly desirable endeavor, you are missing the point!

"You must build the capitalization phase over a period of time, such as four years minimum. You may find it necessary (and desirable) to accumulate the capital over a longer period of time. Indeed, additional capital makes the system more profitable. Whoever heard of a grocer complaining about having to fill the shelves on five (levels) in his store instead of four? He knows full well the additional merchandise (capital) will improve his profitability. Neither should someone complain about additional capital (premiums) paid into a life insurance policy." - R. Nelson Nash, Becoming Your Own Banker

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enDecember 15, 2023

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The Gift Of A Lifetime

Due to several listener requests, we further breakdown the conditions and logistics of juvenile policies. Whether you are a parent or a grandparent, this gift may be the most significant one most children will ever receive. It may not look like it to them now, though their gratitude and appreciation for it will grow as it grows.

"If you owned a banking system, wouldn't you want to run all of your business through your bank? If this is so, then life insurance premiums paid each year should ultimately equal annual income. This can't be done immediately. It will take the average person about twenty years to reach this level. If this message is taught to succeeding generations, then a perpetual banking system can be acheived." -R. Nelson Nash, Becoming Your Own Banker, Unlock the Infinite Banking Concept.

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enDecember 08, 2023

Two Passive Incomes- One Policy

The traditional financial model espouses saving/investing for many years, and then depleting that nest egg for the last few decades of ones life. It's hardly a system of generational growing wealth, and often fails to last long enough for the first generation.

Join Doug & John as they discuss how even one policy can be used across multiple generations and provide true utility over many many decades.

"Please notice that I did not say ‘retirement income’—- I’m dropping that word from my vocabulary. Passive income is money that comes in every year and you don’t have to do anything to receive it. In fact, you can’t do anything about —- it just appears" -R. Nelson Nash, Becoming Your Own Banker, Unlock the Infinite Banking Concept.

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enDecember 01, 2023

Securing Your Family's Financial Future With Child Policies

Compound interest can work for anybody at any age, but the longer the time horizon, the better. There is no better time to get an insurance policy than when someone enters this world.

Premium payments required to acheive a large death benefit are low, passive income is assured, insurability is locked in, most underwriting requirements are avoided, and most importantly it allows a substantial tax free build up of cash that can be used for decades to come.

Join Doug & John as they discuss just how powerful child policies really are.

"As each generation becomes grandparents, they buy life insurance on their grandchildren. If the message is passed on to each child-bearing generation- as they become grandparents then you can create the same effect as the "even distribution of age classes" in the growing trees, but it is far more profitable and certain as to the results." -R. Nelson Nash, Becoming Your Own Banker, Unlock the Infinite Banking Concept.

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enNovember 24, 2023

The Beauty Of Unstructured Loans

Applications, justification, income verification, qualification, etc.... These are some of the many steps we have accepted we must take when getting a loan from someone else. It's a laborious process that's not within our control.

What if there was a better way to access capital? Come join Doug and John to find out how!

“What is an unstructured loan? It is basically an open ended loan arrangement. It is open ended because of the time and frequency of repayment is not defined. There is no set time of repayment. This means that you can pay it back whenever you want, and if you have enough collateral capacity to absorb the loan, you may never have to repay the loan or the interest. (Very) few people can obtain (an unstructured loan unless you have) access to loans from friends without terms, or available from your life insurance company if you own a permanent life, insurance contract.“ - Brian Bloom - Confessions of a CPA, The Truth About Life Insurance.

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enNovember 17, 2023

infinite banking concept

Is Now The Ideal Time To Buy Whole Life Insurance?

To repeat an old adage- the best time to buy life insurance was 20 years ago. The second best time is now. The time value of money coupled with the power of compounding means that age is always the most powerful predictor of policy performance over the long term. However, there are other factors at play at a Macro level that play a role.

Insurance companies rely on safe assets to generate yield on their capital, and therefore, are greatly affected by interest rates. The last few decades have seen historically low interest rates, and declining dividend rates by insurance companies.

We are now at a turning point in this environment, and are starting to see companies either hold, or slightly increase their annual dividend crediting rates.

While we certainly can't predict the future, we postulate that now is likely to be a very good time to own whole life insurance.

“At the end of the year, the Life Insurance company makes an accounting of the experience of that year of the death claims paid, the earnings on premiums collected, and the expenses of running the company. A dividend is declared which is actually a return to the policy owner of surplus premium that as collected. Hence, it is not an earning and, therefore, is not taxable. When that dividend is then used to buy additional paid-up insurance at cost, then the result is a continuous compounding of an ever-increasing base.”

-R. Nelson Nash, Becoming Your Own Banker- Unlock the Infinite Banking Concept.

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enNovember 10, 2023

Collateral Capacity- The Importance of Increasing your Leverage

If you've listened to any of our previous episodes, you'll know that one of the major aspects that makes IBC so powerful is leverage. Leverage is traditionally viewed as a scary thing that irresponsible risk taking investors use. We would argue that the contractual leverage provided by a dividend paying whole life insurance policy is one of the safest financial tools one can have at their disposal.

An life insurance policy is unique in that every year your leveragable capacity grows exponentially faster than the year before as you pay premiums and as policy dividends are paid out and reinvested as paid up additions. This is different from a HELOC or traditional line of credit.

Join Doug and John as they talk about the importance of growing you collateral capacity.

“Many of the people that I work with have a large amount of cash value, permanent life insurance on themselves, and on key family members, and they don’t know how to use it. There will be many times during your career or in your personal life that you will need a cash cushion, and the cash value of life insurance will serve that purpose! A qualified advisor will show you how to structure the policy and once you have the money in the policy, it will become the lifeblood of your financial portfolio, while eliminating the need for many of the other buckets you were told you needed in the past. This one bucket will do the work of several, and it will give you liquidity, use, and control of your money.”

-Bryan Bloom, Confessions of a CPA….Why what I was taught to be true has turned out not to be.

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enNovember 03, 2023

Willie Sutton's Law- Wherever Wealth is Accumulated Someone Will Try to Steal it

Do you like paying taxes? Neither do we.

Come listen as Doug and John discuss this chapter in the book "Becoming your own banker" and learn how they only pay taxes once. Learn how you can protect your hard earned money from unkown future tax burdens, changes, additions, etc...

"Economic problems are best solved by people freely contracting with one another and with government limited to the function of enforcing those contracts. And the best way to do so is through the magnificent idea of dividend paying whole life insurance! It has been around for over 200 years. It has stood the test of time. It is not compulsory. It is not a government sponsored idea. It preceded the income tax idea by a long time. It is private property!" -R. Nelson Nash, Becoming Your Own Banker, Unlock the Infinite Banking Concept.

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