The Brain-Child Of The Inquisitive Mind: Infinite Banking Concept

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The Brain-Child Of The Inquisitive Mind: Infinite Banking
Concept brain- child- of- the- inquisitive- mind- infinite- banking- concept/
April 2, 2013
Infinite banking concept is the most innovative way of making use of the
permanent life insurance policy which evens the highly intel igent brains
could not think of. This al ows the individuals to reduce their interest
payments to a considerable extent, manage their debts, design a tax free
retirement program and enjoy many more benefits. This is infact a simple
game which seems quite complicated at the outset. The concept works in
the same lines in which the banks operate and hence this is nothing but
creating your own personal bank. Through this, one can finance his or her
purchases without lending from the banks.
inf inite banking
Infinite banking concept was first brought into light by
R.Nelson Nash and he can rightly be stated as the
pioneer of this concept.

Infinite banking suggests a complete reliance on the life insurance policies. This concept
metamorphoses a policy holder into one's own personal banker. In other words, a person wil take
loans from themselves and pay interest to themselves in ties of need. When this happens, the
person wil be saving the interest that he pays on the amount loaned as he is paying it to himself
while simultaneously al owing the amount that is kept in the policy to grow.
There is no wonder in one getting confused at this juncture. Let us assume that a person spends
$20 as interest for the amount taken to finance his needs. If that person deposits the money into
a life insurance policy instead of spending it for a purchase, he wil earn the opportunity cost of not
going for the purchase i.e. he wil earn interest on the amount deposited. Now, he can borrow
money from his own insurance policy and the amount paid by him in the form of interest goes
nowhere but to his own policy. The logic is as simple as this. Hence, infinite banking concept
makes intel igent use of the wel -known concept "opportunity cost".
There are a number of advantages associated with the inf inite banking concept.
Growth is always guaranteed in this process and the loan wil be available at any time irrespective
of the reason for which the loan is needed. Another attribute of the concept is that the income
generated is tax free and also free from al kinds of market fluctuations. The policy holder-turned-
personal banker should however make sure that al the loans taken are repaid. If he fails to do so,
the system backfires and the policy value wil not grow.
On the whole, it can be said that in infinite banking concept everything remains the same except
that the banks remain absent from the picture. Instead the policy holder plays that role. This is a
smart way of financing purchases via whole life insurance policies that involve low risk and
guaranteed payments. Some of the critics of the system say that this is possible only after a long
period of time when the returns become equal to the premiums. However, by means of this
concept a dedicated policy holder can become independent of various sources of finance.
I am not an expert in this field, nor do I claim to be. The subject is too complex and requires too
much time to monitor.

But I firmly believe that everyone needs to take their financial matters into their own hands. Don't
rely on somewhat else to tel you what to do. Learn as much as you can and take action.
My goal is to share as much as I know with everyone I know.
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About The Author: DR Murray
DR Murray is a 30 year Fortune 500 financial executive and US Army Logistics
Management officer. He strongly believes in multiple income streams to reduce the
risk of relying on one income source. His personal mission is to empower other
individuals to take control of their own destiny and along the way maintain a sense of humor. It's
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