The interest paid on these items can add up to hundreds of thousands of dollars, perhaps more, in the course of a lifetime. People often have to decide how much money to allocate for their retirement and how much to paying down current debt.

But what if it were possible for people to save for retirement in a vehicle that allowed them to finance their life in a way that provided advantages over borrowing from a bank or lender?

That is exactly what R. Nelson Nash had in mind when he pioneered the Infinite Banking Concept. In essence, Infinite Banking, and other similar systems adapted from Nash’s original idea, involves paying into your own BANK that allows  holders to take loans and then ay back.  In this system you fund your bank and use your own money to make money.  Now this needs to be done in a certain type of vehicle for it to have the best outcome.  You do not want to pay taxes on the money as it grow, or when you take it out.  You also do not want to pay penalties for using the money early. In many was you re staring your own finance company.

How it works

Infinite Banking and other individualized banking systems rely on participating whole life insurance policies, which build up equity and pay dividends. Policy holders pay premiums—which vary based on the amount of the death benefit chosen, along with other factors, such as the age and health of the policy holder—into a whole life insurance policy for a period of five to seven years and let the policy increase in value. This is known as the capitalization phase.

Generally, we try to fund most of the money into it in the first five years. The longer you can allow it to accumulate, obviously, the more you can pull out for retirement savings, the more you can pull out for larger items when set up right.  Not many people know how to set these up.  Go to a person that has been trained.

After the capitalization phase, the policy becomes self-supporting; the returns on the policy at that point will be enough to cover the premiums. The annual dividends are based on how well the insurance company did that year. Insurance companies must invest the premiums received “in order to produce the benefits that are promised,” Nash wrote.

Through the use of a paid-up additions rider, policy holders benefit from having their dividends reinvested into their policy, thus increasing the value of their policy and subsequent death benefit.

Policy holders are able to borrow up to 100 percent of the cash value of their whole life policy at any time with no tax penalties. A policy holder “outranks every potential borrower in access to the money that must be lent,” Nash wrote.  This I very powerful when done right.  It is not hard to do, you just need to know how to do it.

With this structure in place, policy holders are able to essentially act as their own personal bankers. They can loan themselves money from their own life insurance policies, and the interest payments go back to their own accounts.

  By depositing cash into a life insurance policy rather than using it for a major purchase, investors retain the ability to earn interest on that cash. Further, by borrowing from their own life insurance policy, they avoid having to spend that 34.5 cents per dollar on outside financing, and can instead pay that to their own policy. CHA CHING

The borrowed money can be used to finance any purchase, whether or not a lender would typically grant a loan for it. The policy holder, as banker, gets to set the loan requirements.

“You are in total control of your own funds.  You are the underwriter. 

Policy holders must make sure that they pay back any loans they take out. If they don’t, the system of growing the policy’s value will fail. And you never want your own company to fail.

People who follow through on utilizing the insurance policy as a bank are able to supercharge the returns guaranteed by the policy while financing things they would have financed anyway. The difference is that all the interest payments go back to the policy, not to a bank or other lender.  It is like the wind is pushing your car forward instead of against it.  What way does your car work best?

The Infinite Bank is really like a complete financial system. It will provide money for your lifestyle, for your retirement and for your heirs, and works well in all phases of wealth.

If you would like to learn more about this ask for the FREE report "How to pocket the interest you now pay to Banks, Credit Cards, and other Finance Companies, for tax free income for life."

Dave is trained in the Infinite banking system by Nelson Nash and has helped others implement the system into their own lives.  He not only talks about it; his family does it.