This is a case study on someone who is practicing the Infinite Banking Concept revealed in the book Becoming Your Own Banker, by R. Nelson Nash.
A 45 year old male
He put $30,000 in the form of an annual premium into a mutual participating whole life insurance policy promising $567,000 to his family in the event of his death.
Within two weeks he borrowed $12,000 from the available $22,000 cash values inside his policy.
With this $12,000 he paid a tax bill he owed. Then he set up a repayment schedule to repay his policy loan.
Paying $390 per month, for 36 months, he accumulated $14,040 plus the $10,000 of original cash value left over from the first policy loan.
While he was paying back this loan he had also paid two more annual premiums of $30,000 each.
After he paid the second premium, $24,000 was added to his cash values.
After he paid the third premium, another $34,500 was added to his cash values.
At this point, he had $82,540 of cash value and over $801,000 of face value. Because he had only paid $90,000 in premiums up to this point, his comparative cost has only been $208 per month or a total of $7,460.
A term policy for $800,000 of face value, on the other hand, would have cost him $323 per month, or $11,628 during this same time frame.
But it gets even better because he put the $10,000 of cash value left in the policy after the first policy loan to work also.
That $10,000 added to $20,000 which he had on hand, he used to purchase a car. The monthly amortization schedule, for the car, outlined payments of $667.33 per month for 36 months. Therefore after the 36 month period outlined above, this man at age 48, has the $82,540 plus an additional $24,042 in cash values, added together that makes $106,564 this registers as $16,564 more than he has expended in premiums!
Summary:
This man has $16,564 more than he paid in premiums. This is money he would not have had if he had not followed The Infinite Banking Concept.
Besides he has more than $801,000 of death benefit that has cost nothing!
Now he has paid his tax bill of $12,000, plus he has a $30,000 car!
Just in two years, his accumulation will have swelled by an additional $16,016 as he continues to make the monthly payment on his car.
Finally, because he has been utilizing the Infinite Banking Concept and practiced Becoming Your Own Banker, his face value has gone up from $801,000 to $812,424.
Simply by controlling the banking equation, all the profits, which the banks and financial institutions would have made off this fellow, have returned to him tax free.
This case study demonstrates firsthand that the “return of your money is always more important than the rate of return on your money.”
The Infinite Banking Concept is obviously a fact not fiction.
Tom McFie of Life Benefits, Inc. Is a widley sought financial coach. He helps people and business owners recover 30-35% of the money they are currently spending through the practice of the Infinite Banking Concept as described in the book Becoming Your Own Banker
Leave a comment