Financial Freedom with Your Own Private Banking System
You can learn how to take control of your finances and own your own private, banking system.
Having your own bank sounds great, but starting a traditional brick and mortar type bank is not what this is all about.
By Becoming Your Own Banker™, as outlined in the bestselling book by R. Nelson Nash, you can take control of the banking function in your life and enjoy financial freedom.
Family Banking versus Traditional Banking
Considerations for Family Banking
You finance everything that you buy. We all finance purchases from time to time, and even paying cash can create lost opportunity costs.
Simply, we either earn interest or pay interest. When you pay cash, you give up the interest that your money could be earning. When you finance with others, the interest you pay is gone… Forever!
It takes time in the beginning with your self-education of how it all works, and it takes time to capitalize your system.
Your behavior in managing the banking function is the major factor. Being in control requires commitment and discipline.
Experience Financial Freedom
With freedom comes responsibility. When you control the banking function, you literally become the banker, meaning you set the repayment schedule for loans. The amount you are eligible to borrow depends on the collateral or amount you have available as cash value. There is no credit scoring or tradional lending qualification.
Your bank is actually a private contract that you own and control. Whole life insurance from a mutual company provides the mechanism that is needed, we just have to understand how to use it for financing and follow the process.
The Family Banking Process
Start Thinking Like a Banker
Once you start thinking like a banker, it’s easy to recognize the benefits inheritlently built into participating, whole life insurance.
Thinking like a banker, means you’ll want to treat loans as you would treat them if you were borrowing from a traditional bank. The difference is, you have the freedom to change the repayment schedule as you determine. You can increase, decrease or delay principal payments, and you can borrow to pay the interest.
As a policyowner, you have access to this pool of capital based on your contributions and available cash value. Cash values grow over time and are guaranteed to increase. Dividends are not guaranteed to be paid, but they can not be lost once they are inside the policy. Dividends typically buy paid-u-addtional insurance, but can be used in many ways.
Imaging Owning a Banking Business
Would you rather be a customer, or the banker? Nelson Nash relates practicing the Infinite Banking Concept™ to running a business. In the grocery store example, he reminds us, don’t steal the peas!
With a business, you have to capitalize the business. You have to buy inventory or create a system for selling services. You have profits and expenses, and you have to manage how it all works.
A major advantage to family banking (practicing IBC) is… The life insurance company manages most everything. You control the capitalization and the banking function, that’s about all you’re responsible for business wise.
Once in place there’s not a lot of maintenance, paperwork or dealing with the traditional headaches of running a business.
Banking is Not Investing
Private, family banking is not investing. You may use the loans to invest, but that is your decision and responsibility. Investing in a business or any number of assets may provide you with profits or returns on top of the growth of the policy. Banking is simply a process, and controlling the banking function can be very profitable.
There are many types of assets and accounts that can be used for financing, but none offer the security and benefits that come along with dividend paying, whole life insurance.How
Though banks and insurance companies work very similarly, by loaning money, insurance companies can not inflate the money they lend. Strict requirements, regulated by state law, force them to hold reserves. These reserves are shared by policyowners in a pool of capital. This allows the borrower to make a loan without stunting the growth of their policy.
Unlock The Infinite Banking Concept™ (IBC) and Become The Banker
Infinite Banking is a predictable way to create financial freedom by controlling the banking process. Your system is funded with your own personal capital.
While this may sound different, it is when compared to other financial products. Once you recognize how much money passes through your hands, taking control with IBC becomes apparent.
When practicing the Infinite Banking Concept™ (IBC) you can grow your family’s wealth safely and predictably. You can utilize IBC for financing major expenditures without having to depend on traditional banking institutions for lending.
You can control the terms of the loan, how to repay and how the loan is used. Other than the amount available for loan, which is dependent on your available cash valuen, no further questions or qualifying are required once your policy is in-force.
Imagine Being the Banker
Just imagine financing all of your major purchases without having to apply for loans that are dependent on your credit score. Think about doing this over your lifetime, and recovering the interest and fees that you would normally pay to others with traditional financing.
Having access to capital is what private banking is all about. You can have cash-flow on demand, via loans, surrenders and other features.
If you’d like to learn how Family Banking can work for you or your business, schedule a discovery meeting.
Until next time, I’m your advocate,
Barry Page, RFC
Family Banker and IBC Practitioner