Program Benefits
Get Back The Interest AND Principal You Normally Pay to Banks!
The Infinite Banking Concept is built around the concept of finding and recapturing transferred money. So, what is transferred money? It is simply the money in the form of principal, interest and fees that you send to others in the form of repayments on loans.
Every time we make a loan payment, we are transferring money from our account to someone else’s. To make matters worse, loans are generally structured so that we pay back the interest first. If we take a loan out for a car or a mortgage on a house, the first payment is almost entirely interest and the last scheduled payment is almost entirely principle. To add insult to injury, most of use don’t keep our cars until our loans are paid off, and we are also more likely to move from our homes or refinance them before we even get close to making our last scheduled mortgage payment. When we trade in our cars before the current loan is paid off or when we refinance our homes to get a lower rate, we start the interest cycle all over again…from the beginning. This perpetuates the transfer of money from our account into someone else’s pocket:
The Infinite Banking Concept provides us with a way to finance our own loans and make those loan payments (principal and interest) back to ourselves in a tax favored environment.
Eliminate the Devastating Consequences of Interest Rates and Taxation
It seems that “making ends meet” is an ever increasing challenge. We have just come out of a historic decade that has given us the lowest interest rates we have ever seen, combined with the highest returns in the stock market and unprecedented growth in the home equity….and everyone is broke!
While some people got caught unexpectedly in the downturn, the prevailing reason that “making ends meet” is so difficult is because the volume of interest that is transferred to lenders coupled with the tax consequences of today’s investments tie up our money in ways we don’t even see. Thirty-five cents (35%) of every dollar people spend is in the form of interest rates and fees. Add another seventeen to twenty-eight (17% – 28%) in taxes and you have a whopping fifty two to sixty three percent (52% – 63%) of your income leaving your pocket! That means that someone with a $65,000 income in a 17% tax bracket only has $33,800 of useable income after they pay their taxes and the interest on their loans. Effectively half of their hard earned income has disappeared and they haven’t even paid down the principal on their loans, bought food, or enjoyed a night out.
To counter taxes, we often invest in our 401(k), IRA, or SEP accounts. That does give us a tax break today, but in reality, we are creating a potentially much larger tax liability on the back end. If you were a farmer, would you rather pay taxes on the initial seeds you buy in the spring, or the vast harvest you have in the fall? In contrast, the Infinite Banking Concept eliminates the devastating consequences of interest rates and taxation by giving us a tax advantaged environment to operate in while allowing us full control and liquidity of these funds for today’s needs and wants. This allows us to recoup the interest we pay to others while providing us with tax-free access to our money when we retire!
Liquidity, Use, and Control of Our Money
We have been conditioned and trained to utilize qualified plans such as the 401(k), the IRA, the SEP, 529 plans, and others to plan for retirement and college. We have always been told that the best way to plan for retirement is to set up one of these options. In reality, when we rely on these plans as our sole source of retirement we become distracted from major pitfalls of these plans and bec
ome enticed by the benefits of tax deductions on current income and tax deferred on compounding growth. So where is the danger?
Qualified Plans (401(k), SEP, IRA) lock away our money and impose penalties and tax implications for early withdrawals. When we put a significant portion of our income into these options, we lose the liquidity use and control of that money and reduce the amount of expendable income we have to live on. This creates a financing need. We may have $100,000 in our 401(k), but we are forced to finance a $20,000 car because we don’t have access to the cash to pay for it. When we apply for the car loan, we are at the mercy of the lender and we are forced to pay the rate that they determine we qualify for. This continues the transfer of our wealth to others and ends up erasing the advantage of the tax deduction we received. This is a contributing factor that keeps us on the financial treadmill. In contrast, the Infinite Banking Concept gives us full liquidity, use and control of our money from day one!
Contractually Guaranteed Growth Every Year
In addition to the restrictions that qualified plans place on us, they also can subject us to fluctuations in the market. The risk associated with stocks, and mutual funds within these qualified plans have been synonymous with double digit losses for many. The unpredictability of when these fluctuations in the market take place increase the risk and security of our retirement the closer were get to needing our money the most. Warren Buffets number one rule of investing is “Don’t lose money!” Rule number two is “Don’t forget rule number one!”
Recovering from losses is harder than most people realize. Take this example… You have $100,000 invested and you lose 25% or $25,000 in one year. How long and at what rate of return does it take to recover from those losses? The answer is one that surprises many. It would actually take a 33% return over a one year period to recover from a 25% loss. How can that be! The answer is simple. When you lose 25% of $100,000, you end up with $75,000. Because you have a smaller principal amount to earn interest on you have to earn 33% on the $75,000 to get back to $100,000.
The Infinite Banking Concept not only operates in a tax favored environment, it also gives you principal protection andsafe money growth with guarantees. When was the last time your retirement plan offered that? You never have to worry about market fluctuations again because it is not tied to the market!
Operate In A Tax Favored Environment
The opportunity to operate in a tax deferred environment while our money compounds is the biggest key to growth in our retirement accounts. If you took a dollar and doubled it every year for twenty years and were able to avoid taxation on the gains each and every year, you would have an account worth $1,048,576! Tax the growth at 17% and that same account would only be worth $177,428. Tax the growth at 27% and you end up with an appalling $51,353.
Be Your Own Banker…Retire Tax Free!
In order to enjoy the success of growth, deferring and stopping the consequences of taxation is crucial. This is what makes a qualified retirement plan attractive. But, what if there was a better way? What if there as a way to still enjoy tax deferred and compounding growth while maintaining the liquidity, use and control of your money? As an added bonus, what if we could enjoy tax –free access to that money at retirement! Well, there is. The Infinite Banking Concept gives us this capability. If you think this is probably too good to be true and not worth your time to investigate, then we thank you for checking out our site. If you have an open mind and wish to investigate further, then we invite you to proceed…
Before you know what this is, you need to know what this is not….
· A get rich quick scheme.
· Multi-level marketing.
· A risky proposition – there is no risk; it’s contractually guaranteed.
· Purely an investment. It’s a financing vehicle, which, combined with an investment can get you to
your goals much quicker than an investment vehicle alone.
· A set-it-and-forget-it plan; the more you use it, the better it gets!
· About a rate of return; it’s about your flow of money
How Does It Work?
Infinite Banking allows you to create your own bank and never be at the whim of the government and banks again. NEVER AGAIN will you have to worry about qualifying for a loan or wondering how you will pay for a major purchase. We have regular seminars and guarantee you will walk away wondering why you have not heard about it sooner (while, actually, it’s been around for over 200 years).
We are very passionate about this system. The amount of wealth you could accumulate over the years simply by utilizing the capital within your own bank instead of an outside bank is substantial and real! The effect interest rates have on the amount you pay for large ticket items such as real estate creates a huge headwind for most people and makes it harder to achieve their financial goals. This system turns that headwind into a tailwind and helps people meet their financial goals faster than they ever imagined. The interest you pay comes back to you in a tax free retirement income, and when you “borrow” from your own bank, you do not give up the right to earn interest on your money. This makes this system better than even using cash to pay for purchases and you will never have to worry what your FICA score is ever again.