Posts Tagged ‘Infinite Banking Concept’

06.26
14

Building Wealth Through double Duty

by como ·

Most everyone is in the wealth building business whether they know it or not. Everyone is working toward saving or investing for their future, the difference between saving and investing is the topic of another article but their is in fact a difference.

Most likely you’ve done some research regarding the best wealth building tools out there. Everyone seems to have a magic bullet. But when it comes right down to it most wealthy people have made their money through their business and/or proper management of their funds. There is a little known vehicle that is used by the majority of wealthy people to get their money to do “double duty.”

The vehicle’s technical name is an IRC7702, you’ve most likely heard of an IRC7702 being referred to as Infinite Banking or You Be the Bank. But what is it really and how does it allow for the most efficient wealth building?

An IRC7702 is an over-funded, maximized, dividend paying whole life insurance policy. I know it sounds strange that a life insurance policy could be used as a vehicle for building wealth but in almost all cases the wealthier someone is the more life insurance plays a role in their finances.

You Be the Bank and Infinite Banking is a way to use an overfunded life insurance policy to create your own private banking system and here’s where it gets really intriguing.

To explain the entire mechanics of how the system works would take hundreds of articles so I will simply explain how this special type of policy allows your money to work twice as hard as it usually can.

With You Be the Bank you are essentially drawing from your private banking system and giving loans to yourself and in turn paying them back plus interest just as if you had received the loan from a lending company. The difference is you will end up with all the principle and interest back in your own pocket instead of someone else’s.

This system could be implemented with any number of financial vehicles including a checking account, savings account, mutual fund, etc. The difference is this:

If you built your private banking system in a savings account, let’s say you had accumulated $40,000, and now you want to go out and purchase a car, lets say it costs $20,000. As soon as you took that $20,000 to go purchase your car your savings account would only be earning interest on $20,000, because you took $20,000 out to buy the car.

Now, if you had built your private banking system in a properly setup dividend paying whole life insurance policy and, just like the previous example, accumulated $40,000 you could take $20,000 out to go purchase your car and the account would continue to earn interest on $40,000.

Let me say that again, I’ve got a total balance of $40,000 in my private banking system, I proceed to take a $20,000 loan from that system, but my money will continue to grow as if I had not touched it.

An IRC7702 is the only vehicle available that offers this unique quality. Keep in mind this system is a very intricate and detailed process and you will need to speak with someone that has extensive knowledge of the Infinite Banking Concept, also known as You Be the Bank or Becoming Your Own Bank, in order to properly implement this system properly.