Infinite Banking, Fiction Or Fact?
This is a case study on someone who is practicing the Infinite Banking Concept revealed in the book Becoming Your Own Banker, by R. Nelson Nash.
This man was 45 years old.
An annual premium consisting of $30,000 being paid into a dividend paying whole life insurance policy with a face value consisting of $567,000
Within two weeks he borrowed $12,000 from the available $22,000 cash values inside his policy.
He used this $12,000 to take care of a bill to the tax department. The man repaid this loan on a repayment schedule.
After 36 monthly payments of $390 per month the total accumulation of his payments amount to $14,040 besides this, he still has the $10,000 left over after the first policy loan was taken.
While he was paying back this loan he had also paid two more annual premiums of $30,000 each.
The second paid premium increased his cash values another $24,000
His third paid premium increased his cash values by yet another $34,500
Now he has $82,540 in cash values besides the $801,000 of face value. At this time, he has only paid $90,000 of premiums, so really his cost has simply been $208 per month or $7,460 in all.
So let us compare this to a term policy with $800,000 of face value. For this kind of face value he would have paid $323 every month for a total of $11,628 over this period of time.
This continues to improve because remember the $10,000 of cash value that this man left inside his policy when he took out the $12,000 loan?
He took this $10,000 and utilized it along with an extra $20,000 that he had in cash to buy a new automobile. The repayment schedule on this loan amounted to monthly payment of $667.33. So after this 36 month time frame when the guy is now 48 he owns an additional $24,024 along with the $82,540 which totals to $106,564. This means he has $16,564 more than in what he put into this process in premiums!
Summary:
This fellow now has $16,564 which he would not have had otherwise
Besides he has more than $801,000 of death benefit that has cost nothing!
Now he has paid his tax bill of $12,000, plus he has a $30,000 car!
And, in just two more years, he will have accumulated another $16,016 simply by maintaining the repayment schedule he has already set up on the automobile.
Finally, because he has been utilizing the Infinite Banking Concept and practiced Becoming Your Own Banker, his face value has gone up from $801,000 to $812,424.
Simply by controlling the banking equation, all the profits, which the banks and financial institutions would have made off this fellow, have returned to him tax free.
After reviewing this case study, it is quite evident that “The return of your money is more important than the rate of return on your money.”
The Infinite Banking Concept is indeed fact and not fiction.
Tomas McFie PhD. of Life Benefits, Inc. Is a widley sought financial coach. He helps people and business owners recover 30-35% of the money they are currently spending through the practice of the Infinite Banking Concept as described in the book Becoming Your Own Banker
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