The Infinite Banking Concept (IBC), was the original Decentralized Finance (DeFi). Long before the word DeFi became popular, Nelson Nash had already written the book Becoming Your Own Banker and created IBC.
Decentralizing Your Finances (DeFi)
While newer proponents of DeFi may relate the process to block chain or digital currency, the premise is to move away from traditional banking and take control of one’s finances. This notion has been around at least as long as the central bank or the Federal Reserve which was created in 1913.
In today’s world, there’s never been a stronger argument to decentralize and remove the middleman in the banking process. Infinite Banking does just that, allowing the policyowner to control the banking function, eliminate traditional credit scoring, and dictate the terms.
Taking control usually means risks, and with digital currencies, the risks could actually be much greater. Certainly the element of control and reduced costs are appealing, but the uncertainty and the risk of loss may outweigh the benefits.
Protecting Yourself from Risks
Having all of your money in the market or blockchain is a risk that you shouldn’t, and don’t have to take. Most agree the markets and tax laws will remain volatile, so it’s hard to predict your future with an uncertain plan.
What happens when these plans fail because of market crashes? Could you wait for the markets to recover? Most people don’t realize that the Japanese market still hasn’t recovered after 30 years! And the European market has been down for 20 years!
There’s nothing wrong with diversity, and this should include risk diversity and tax diversity. And, there’s certainly nothing wrong with cash-flow diversity.
As 2022 moves forward, it’s a good time to review your financial strategy and ensure that you’re ready for the future ahead.
Understanding How Your Money Flows and Recovering Lost Costs
Where do you store your money? When your paycheck is deposited into your local bank it provides convenience, but the bank is in control of the capital. There has to be a change in your thinking to realize this is a financial prison. Once you recognize the problem, you will know what to do.
“This is going to require a change in priorities in life and recognizing that controlling the banking function personally is the most important thing that can be done in your financial world.”
~Nelson Nash
Learning how your cash flows, and redirecting your spending into your own private banking system takes time and patience. But, once you do, you can rest well knowing that you are in charge of your financial future.
Optimizing Your Banking System with Paid Up Additional Insurance
To optimize your family banking strategy and practice IBC, use the inherent feature of Dividend Paying Whole Life Insurance for financing. Loans and repayment schedules are flexible and don’t require credit reporting.
New policies can be optimized for banking purposes by purchasing Paid Up Additional Insurance (PUA). In recent years, because of interest rates being held low, the limits on funding PUA riders have been held low.
MEC – Modified Endowment Contract or Maximum Efficient Contract
In 1984 the MEC Rule, better known as Section 7702 of the IRS Code, was established to limit policyholders from overfunding life insurance policies to avoid paying onerous taxes. Also known as the 7 year rule, the law requires a testing of funding on policies to determine whether savings and death-benefit are balanced. it was intended to limit policies that were mostly savings vehicles with a thin layer of insurance.
Updates to the 7702 IRS ruling may allow for additional funding of certain permanent life insurance policies. Depending on your situation, you can purchase paid up additional insurance with dividends or with a rider on your policy. This provides for earlier access to capital, financing options, cash-flow and tax-free benefits in the future. This option may improve efficiency and allows flexibility for capitalization.
In some circumstances, the new ruling may allow policyowners to overfund the PUA rider more without triggering a taxable event. One should have a clear understanding of how the rider works and realize that every policy and every company are different before before attempting to use this rider.
Life Insurance is a Private Contract
Having an account that you own and control can help you better protect your future and capitalize on opportunities. There aren’t too many accounts that can provide all of that. Permanent Life Insurance offers these benefits.
• Protection
• Savings
• Growth
• Liquidity
• Use
• Control
• Tax Advantages
Get started with the Infinite Banking Concept (IBC) the Original Decentralized Finance (DeFi)
Becoming Your Own Banker 5th Edition is available again after some supply chain hiccups. Read and reread this book to solidify your understanding of The Infinite Banking Concept®. Think long range and share this wealth of knowledge with your family and the ones you love.
The economic problems we face are real. If we want to survive in the new world of finance, we may have to change our thinking. The best alternative is to take control of your finances, and quit the bank and government plans.
Happy Banking,
Barry Page, IBC Authorized Practitioner and Coach
Thanks for reading! To get started with infinite banking and grow your family’s wealth, take action!