The Misinformation Around the Infinite Banking Concept

By Olivia McGraw | Unbridled Wealth

In this age of information, we’re all too aware that it’s also an age of misinformation. Discerning truth becomes a test of both our knowledge and instincts. Even then, most of us have to admit we’ve been the victims of lies that were more believable than the truth. When it comes to learning about the Infinite Banking Concept (IBC), we often spend at least one meeting addressing misinformation and explaining why it is incorrect. Let’s look briefly at some of those myths we are keen to break.

It’s too expensive. If that were true, I wouldn’t be here. The most important part of my job is making sure this strategy fits with each person’s financial situation, is affordable, and will be in place for the rest of your life. If it is currently unaffordable, there is always a backup plan that can set you up for success in the future. Our job is to let the math tell us where there is a good place to start.

It's better to start later with more than now with less. When is the best time to plant a tree? 30 years ago. The second-best time? Today. Thanks to compounding interest, this concept is more about time than amounts. Waiting for a windfall or big payout isn’t necessarily the most advantageous strategy. Starting today with a conservative plan and becoming acquainted with the principles that make the system work will equip you with the tools needed to steward a larger sum in the future. 

I can take out more than I put in right away. That would be magical and amazing! Unfortunately, what you put into the machine determines what you can take back out. You’re learning how to bank, and thanks to compounding interest, there will be a time in the future, generally at retirement, when you can take out more than you’ve put in. But not right away. 

IBC is a bad investment. I can make more in the S&P 500. I would be extra wealthy if I had a dollar for every time I heard this one! Let’s look at the first part. The infinite banking concept is creating an asset, not an investment. And fair enough… go make money in the S&P. But you’re subject to market turns, negative years, etc. However, your money will only ever be in either the S&P or some other investment. With IBC you can actually do both- which in reality allows you to have a safety net for those other investments. Yes, IBC is slow to start… but that’s the nature of compounding interest. It’s always slow in the beginning. But we’re playing the long game. There is no comparison when we look 30 years down the road. You will have built a REI empire and have access to tax-free income for life if you’ve learned how to bank properly. This is the beauty and the magic of infinite banking. Once you understand the mechanics of the banking process, which doesn’t take long, you will see how math and flexibility work. No other vehicle on the planet works this way. 

If you have questions or other points to discuss regarding IBC, let’s talk! We love addressing questions- and prefer to do this before anyone starts down the road of starting their own bank. That way no one has buyer’s remorse, and you can confidently change the financial trajectory for both you and your family. 

Reach out to us today for a friendly discussion!

Olivia McGraw | [email protected]

Jason K. Powers | [email protected]

Jack Carlson | [email protected]