The Infinite Banking Concept will teach you how to become your own banker by:
- Creating your own banking system using dividend-paying, permanent life insurance.
- Using available savings and cash flow to build your own “bank.”
- Capitalizing and establishing your plan.
- Using the method to finance your automobile purchases and even to finance your home.
- Expanding your system to accommodate all income through a system of banks to increase your personal wealth.
- How a business can use the concept for equipment financing.
Becoming Your Own Banker, the Infinite Banking Concept also reveals the truth behind the most important business in the world - banking. It provides you with foundational financial wisdom that will help you understand personal finance like never before.
The Synopsis below is from
Infinite Banking - How It works by Gary Vande Linde
The essence of the Infinite Banking Concept is how to recover the interest that you normally pay to a banking institution through the use of dividend paying life insurance, so that the policy owner makes what a banking institution does. Earnings grow within the policy tax deferred. You are both reducing your tax burden and capturing monies for yourself that a banking institution normally would receive. And by the way, you have a death benefit thrown in on the side!
Anytime you can cut your payment of interest to others and direct that same market rate of interest to an entity you own and control, which are subject to minimal taxation then you will have improved your wealth generating potential significantly.
The Infinite Banking Concept is not about investing, it is about financing, and financing is a process not a product. Financing involves both the creation of and maintenance of a pool of money and its use. However, when a financing system is combined with an investment system the combination of the two will always out perform an investment system. When the system combines reduced tax liability with a financing engine and allows complete control over your investments there appears to be no system capable of generating wealth with as much consistency or speed.
A primary concept or principal is that you finance everything. You either finance by: Paying interest to someone else - a bank, lender, etc. Or giving up interest you could have earned otherwise. (When you pay cash the interest the money could have earned is forfeited).For these reasons when we are discussing investment alternatives we must not only weigh the return we will receive but we must also evaluate what we are forfeiting or giving up. This mind set will become more important as we evaluate the "Infinite Banking Concept.” For all of the reasons mentioned above every person should be fully engaged in two businesses - Your occupation and Banking.