The Basics of Infinite Banking

The basics of infinite banking Hi, I am Sunny Mitra founder of Bright Horizon
Wealth. We teach entrepreneurs and go-getters like
you how to own their financial future with the concept of infinite banking. So, make sure you subscribe to our YouTube
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a Valuable tool today that will increase your savings easily and effortlessly. So, today’s topic is the basics of infinite
banking The secret of infinite banking can be summed
up in two simple words, recapture and reinvest. Even though the process of infinite banking
is pretty simple but sometimes people tend to over complicate it. When we say infinite banking, all it implies
is take your savings out from the bank and move it into a whole life policy. Now, you might ask why? Before answering that let me ask you a question,
how much interest is your bank CD paying you? 1% or maybe if you’re lucky 2%? If you look at infinite banking, it is basically
a whole life insurance policy. And this special kind of whole life policy
pays a guaranteed 4% compounded APR, I’ll repeat, it’s a guaranteed 4% compounded
rate of interest. As you all know when we say APR that means
annual percentage rate that an institution pays in the form of interest. By the way there are only two places where
you can earn compound interest: either a bank CD or a whole life policy. But wait there is more to it than just making
more interest. If you choose the right kind of whole life
policy then you also have a chance to get a dividend check at the end of each year,
on the top of that 4% interest. But it all depends which company you choose. There is another advantage for the cash that
grows within the policy, it grows at a tax-free rate. And not only it grows on a tax-free basis
but also you can take distributions from this account on a tax-free basis. You can take a loan out of it tax-free without
disturbing the principal. So, in other words, put your savings into
your whole life policy. And remember your goal should be to get in
as much money as you possibly can. Let it earn on a tax-free basis. Utilize the money tax-free in the form of
a loan whenever you need it. And the best part of it is, from day one you
will have the access to 60% to 90% of this money. Let me tell you a real-life story. A couple that I know had debt totaling to
$120,000. They had all kinds of debt. Credit card debt, mortgage payments, personal
debt you name it. When they heard about the infinite banking
concept, they immediately put $10,000 into a whole life insurance policy as their annual
premium, and then, they turned around the same month, withdrew $6,000 from their account
and paid off one of their credit cards that had the highest interest rate of 29%. And over the course of the next two years,
they pulled their debt down from $120,000 to $80,000. You might ask me, “But Sunny, my existing
life insurance policy does not allow me to do that right away. There I had to wait a long time to have access
to the money, why?” Here is the reason, these whole life policies
are designed as a cash value policy, in mind. Whereas, a traditional whole life insurance
is going to take about 3 to 4 years for you to start creating some cash value that you
can actually use. Are you with me so far? Now that you’ve taken out your savings and
moved it into a whole life policy which is making a guaranteed 4% compounded interest. This is the vehicle that you use. Now, in the next part, we are going to talk
about the process. But before that, let me ask you a question,
how do you use the banking system in your life? You might say I save money there, and also
borrow money from them and paying them back, principal and interest. And you are right. You must have thought from time to time, that
banks are profiting tremendously off of your needs. And you are right there too. So, how about reversing the process? Instead of borrowing money from a bank, what
if you start borrowing against your whole life insurance policy, and fund your lifestyle,
like whether it’s buying a car, home or as small as funding a mini-vacation. Now think for a moment, if I told you that
an average American pays to the tune of in between $280,000-$450,000 just in interest
alone to their creditors, in their lifetime, will you believe me? If not, just Google it. And that is exactly what the infinite banking
process dictates you to do: stop paying those interest to the bank. So now I think you have a rough idea of what
infinite banking is. In its simplest form instead of getting a
CD from the bank you buy a whole life insurance policy and deposit your money there, using
it as your own family bank. And by doing so, instead of giving all that
interest to the creditor (whether it’s credit card, auto, home or student loan), you take
out a loan from your own policy and pay it back to yourself with principal and interest
both, just like you’d pay it back to the bank. This thing alone, over the years, will make
a big difference. And that is the whole premise of the infinite
banking concept, or IBC for short. There are three legs to the stool of financial
freedom, savings, investment and insurance. 1. The rule of savings says, “Pay yourself
first.” 2. The rule of investment says, “Pay yourself
interest.” 3. The rule of insurance says, “Never lose
money.” And, you can find them all inside a whole
life policy. So, my question is, how do you get started
with it, especially if you do not have some funds available? Follow the fundamental rule. Remember the rule of saving says, pay yourself
first? So, this is the tip for the day: read this
book, “The Richest Man in Babylon by George Classen,” it will provide you a new compass
for your financial journey. So, that’s about it for today. Now, I have a question for you: What is the
one thing you got from this video today? Please let us know in the comment section,
it’ll help us improve our message. Thank you for watching our video today. If you want to learn more about it, check
out our Free On-Demand Master Class, which explains in a more in-depth setting. Please give us a like, subscribe and share
it with your family. Check out our next video named, the difference
among whole life, term life and universal life. It’s a very important tutorial. Those of you who are interested in working
with us in creating a policy for your specific situation, make sure you use the link below
to apply to become our clients. And don’t forget to own your financial future
or someone else will.

One Comment

  • cool content keep it up dude

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