What is Infinite Banking?

Posted by on Sep 25, 2013 in Infinity Banking | 0 comments

What is Infinite Banking?

What Is Infinity Banking ? in The Words of a Financial Advisor:

Here’s the problem – Whenever you borrow money to buy a car or purchase anything with a credit card, you pay more interest to the bank or finance company than you earn on your own savings or investments. For example, you probably pay interest rates from 7% to 15% on car loans and credit cards, and then you earn as little as 3% to 4% on a savings account or hope to average 8% to 9% a year in the stock market. All of which is taxable so you pay much more to borrow money than you earn on the money you save or invest.

So, what’s the solution? Pay yourself to borrow money, become your own banker, and profit from your own borrowing. It’s called Private Equity Banking, and it can help you become financially independent and fund your retirement too. So, because the more you borrow from your own bank, the more you save and earn for yourself. Private Equity Banking is made possible by Internal Revenue Code section 7702, which enables you to deposit money into a privately insured savings account, also known as a cash value insurance contract. Earn interest or dividends on the money you deposited as well as the money you borrow all without any taxation are reporting to the IRS. Here’s how it works. To qualify under the tax code, you must first capitalize your bank over a period of 4 to 5 years.

Some of the sources of equity capital might include; a gift or inheritance from relatives, bonus checks from your employer, tax refunds from the government, a certificate of deposit, or mutual funds that pay you a lower rate of interest than the rate you pay to borrow money.

Now once your bank is capitalized, you are contractually guaranteed to borrow money at any time without delay or qualification. You get to set the terms of repayment including the interest rate you choose to pay yourself because it’s your bank, and you are in control. The money you borrow can be used for any purpose and will continue to earn interest or dividends in addition to the interest you pay on your own loans. What’s more, your bank is legally protected from creditors and lawsuits and is contractually guaranteed by a legal reserve insurance company. However, you must pay back all the money you take out plus interest or your banking system will ultimately fail.

Private Equity Banking is a lifetime financial strategy that can even be passed on from one generation to another. It can provide the money to finance anything you want and at the same time fund your retirement before passing on to your heir’s tax free. For example, Greg’s father taught him the Private Equity Banking concept right out of college in the early 70s. And he began funding his “bank” with a $5,000 graduation gift from his grandmother, and 10% of his monthly income earned as an accountant, Greg bought his first new can in 1975 for $3100. With a loan from his own bank, which he paid back to himself over three years at an interest rate of 10%. Since then, he has purchased 14 more cars; 6 for himself, 5 for his wife, and one for each of his 3 children. Greg has paid himself more than $300,000 of interest on his own loans and has continued to fund his bank with 5% of his monthly income. So, he now has more than $1,000,000 in his Private Equity Bank from which he will draw a tax free monthly income when he’s ready to retire.

Private Equity Banking is not a new concept. It’s been around for more than 50 years, and thousands of people have done it successfully. You can open your own private “bank” at any stage of your life, or open a bank for your children or grandchildren too. It’s a smart, safe, and sensible approach to a lifetime of financial security and independence.

If this post has described a problem that concerns you, and you think the solution might be of interest to you. You probably have some specific questions or require additional information. So, let us know the information you want and we will get it out to you right away.

 

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