The Money Advantage Podcast

The Money Advantage Podcast


Becoming Your Own Banker, Part 14: Financing with Infinite Banking

November 06, 2023

Want to see firsthand how financing with Infinite Banking will help you come out ahead?

https://www.youtube.com/watch?v=E8vTK1dhZWU

Get ready for a mind-shift as we journey through the concept of infinite banking, as presented in Nelson Nash's groundbreaking book, Becoming Your Own Banker. We promise to challenge your conventional thinking about storing capital and show you a more profitable way of managing your money. This episode uncovers the benefits and nuances of this method, contrasting it with five different ways of purchasing items and revealing why the Infinite Banking Concept could be the game changer you need.

The heart of this episode is a detailed examination of infinite banking, where you play multiple roles, from the policyholder to the depositor, customer, and owner. We illuminate the advantages of this system, using the example of financing a car purchase over 44 years. By comparing this with leasing, bank financing, cash, CDs, and whole life insurance, we uncover the superior potential of the infinite banking system. We highlight not just the numbers but a fundamental, more profitable shift in thinking.

Lastly, we delve into the nitty-gritty of capitalizing life insurance policies. This method stands apart from other methods and requires discipline and long-term thinking to see uncommon results. We stress the power of capitalizing and how it can enable you to secure static payments for large ticket items and a robust future. This episode is all about unlocking the incredible potential of thinking like a business and understanding the key players in the game: the policy owner, the life insurance company, the dividends, and the death benefit. Tune in, and let's change your financial future together.

Join us for this discussion of life insurance, infinite banking, and building wealth!

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Rethink Your ThinkingNelson’s Car-Financing StrategyWhy is IBC So Effective for Car Financing?Other Methods of Financing:Book A Strategy Call

Rethink Your Thinking

[05:20] “IBC is a way of life. It’s not something that you’re just going to try.”

In order to execute an infinite banking strategy, you have to be willing to completely rethink your thinking. IBC is about storing capital—that’s something you’re already doing, regardless of your background. Whole life insurance is simply the vessel for storage, and by rethinking what capital storage means to you and what it can do for your life, you’ll be able to create life-changing financial strategies. 

IBC isn’t magic. It’s just strategy, and you can benefit from it by being receptive to learning new things and challenging your existing worldview about money. 

[07:40] “Remember, this is about the human condition and changing your human condition. That is more important than the numbers.”

Nelson’s Car-Financing Strategy

In this instance, we want you to rethink your thinking about what it means to finance purchases. In this case, we’ll talk about car financing. There are many opinions on how to do it—pay cash, do a short-term loan, etc. In Becoming Your Own Banker, Nelson Nash shares his strategy for financing a car every four years.

The basis for this strategy is, of course, whole life insurance, which provides your pool of capital. The advantage of financing via policy loan is that you can set your own amortization schedule, and you can buy a car without losing the ability to earn interest and dividends on the full amount of your capital pool.

This not only puts you in complete control of your payment circumstances, but it also makes your banking system more efficient. 

Why is IBC So Effective for Car Financing?

What makes whole life insurance so efficient? The answer is opportunity cost. Opportunity cost refers to the cost of one financial decision over another. When you pay for something in cash, you lose the ability to invest that cash somewhere else. So not only are you losing the initial capital,