If you didn’t already know, You Tube is one of the best places to find lessons on Infinite Banking Concepts. Actually, Paradigm Life has an entire channel on You Tube dedicated to understanding anywhere from the basic concepts of Infinite Banking to the advanced.
Any wealth strategist at Paradigm Life first recommends registering for our FREE eLearning course, Infinite 101 – that is where you will find in-depth information on retirement, tax-savings, investing and more. However, in regards to Infinite Banking You Tube can be the next best thing.
Before you get started with Infinite banking on You Tube or in Infinite 101, here is some introductory information that will help give you a good idea of what to expect:
Infinite Banking Basics
Infinite Banking was first coined by Austrian economist, Nelson Nash, in the 1970s. The concept has to do with being in control of your personal economy by eliminating banks from the equation.
Banks make a huge profit by being able to lend out your dollar with the fractional banking system. This means that for every dollar you deposit into your bank account, the bank can legally lend out 90 % of it. By law, they are required to keep just 10% in their reserves at any given time. If anything ‘happens’ (like another market crash) every depositor is insured by the FDIC up to $250k.
In theory, fractional lending is not bad. It keeps money moving through the economy and allows average individuals the opportunity to buy the necessities in life, like cars and homes. However, our current banking system is imbalanced. Its banks that make incredible, unimaginable amounts of profit because they do so with money that was never theirs to begin with – it’s with depositor’s money.
What makes infinite banking so financially empowering is the fact that an average individual can utilize the same lending concepts that banks use to earn themselves a profit. Permanent Whole Life Insurance is the vehicle that supports the Infinite Banking Concept.
Banking with Permanent Life Insurance
Whole Life Insurance comes with an inherent cash value, which means that a policy owner can borrow against the insurance company while being able to still earn interest on their policy.
In addition to earning a steady rate of return, a policy owner can receive dividends. Though dividends are not guaranteed, mutually owned insurance companies have over a hundred year history of dividend payout – even during the Great Depression.
The Infinite Banking System allows for you to build lasting wealth. With dividends and cash value, you can invest in other performing assets, not to mention that whole life insurance comes with a death benefit.
Benefits of Infinite Banking:
Market Protection – The growth potential on a Whole Life Policy is not dependent on the Stock Market
Tax Benefits – Your policy grows tax-free
Guaranteed Growth – Consistent return on investment
Wealth Building – Inside of a Whole Life policy your money is not eroded by taxes or inflation
Retirement – You can receive income disbursements without restrictions
Liquidity – With the Cash Value you can invest in other performing assets
To learn more about Infinite Banking talk to a Wealth Strategist at Paradigm Life and in the meantime, watch our You Tube videos:
You Tube: The Wealth Standard Series