Infinite Banking Concepts Explained And Simplified

Infinite banking Concepts (IBC) has taken many names. Some of them are bank on yourself, becoming your own bank, perpetual wealth system, perpetual wealth strategy, circle of wealth and others.

As you start to read and listen to all the IBCs you just start to get more confused. You get more questions than answers. So lets keep it short and simple.

IBC is not a investment. Get it out of your mind. This is not an investment strategy.

IBC is a financing strategy.

It Is a way to growth and protect your capital. As you pay your premium and your capital growth, the interest that your policy earns keep yearly compounding. As time passed you capital gets bigger and bigger. Never touch the capital till you died.

For IBC to works, You should be drawing loans at the same time. The loans you take should be invested into assets that generate income. You use part of this income to pay the loans back. Because you are paying the loans, is like the interest is decreasing b/c you paying interest on a lower amount of money.

So instead of investing directly into assets, you just park your money with a high cash whole life insurance, then take a loan against your policy. Then use the loan to invest into the assets. The use the money that the asset generated to pay the policy loans.