By Jack Carlson | Unbridled Wealth
At the April AZREIA meeting in Phoenix, I heard these two very different comments within 5 minutes.
“I’ve been learning about IBC for the past month. Definitely want to implement this strategy and use it right away for funding syndication opportunities.”
“Is this that thing that uses whole life insurance? This is a scam. I don’t want to hear about it.”
Why such a crazy spectrum of thought on this strategy?
Most people, including myself (until 3.5 years ago), have primarily heard that whole life insurance is:
- A terrible place to store money because of the high fees and the cheaper death benefit available through term life insurance.
- Has a low rate of return compared to the stock market.
The problem is that Infinite Banking isn’t related to either of those statements.
The strategy does utilize whole life insurance. But most insurance agents are not trained to structure policies for Infinite Banking properly. Properly structured policies happen to reduce agent commissions by ~5x compared to a standard structure Whole Life policy, as it were. The goal of an Infinite Banking style policy, in general, is to create as little death benefit as possible for the greatest amount of premium possible—a totally different and foreign idea for the majority of Americans.
And though the rate of return feels like the most important thing when building wealth, especially in the stock market, it’s actually insignificant in this conversation because IBC is about controlling the banking function in your life. Meaning it’s about creating a system that allows your dollars to grow positively your whole life with no interruption while remaining accessible to fund real estate investments or major purchases when they come your way.
The growth of your original dollars never gets interrupted because we’re never using your own dollars for these other investments. We’re borrowing against them and utilizing the life insurance carriers’ dollars, which enables your one dollar to do multiple jobs.
And the power of a multi-tasking dollar is huge.
Have you ever heard of the Infinite Banking Concept?
If you have, where do you land on the spectrum of thought around it?
Please shoot us an email or grab a time to chat. We’d love to unpack this strategy more with you.