(( IBC - Part II ))
Hello, and Welcome to this Web Page! My name is Peter Arnold.
Thanks for visiting this extension of our main site on
IBC (Infinite Banking System)!
Again, this Special Web Page is a continuation of the wisdom of PRIVATIZED BANKING - becoming your OWN family banker.
Up Front - As I mentioned on the other Web Page, I wish to disclose
that, although my own professional background and education has been in the field of counselling my clients
on business and financial matters - I am not personally marketing this outstanding
(IBC) financial vehicle (I am not "licensed" for that) - nor do I receive any
financial compensation whatsoever for recommending it, or referring the few top advisors who do specialize in
I believe therefore that, although I do very much applaud IBC, I am able to
provide you with a totally "independent" view on this, as I have "no ties" to any IBC financial
product, or company, or promoter. The many sources reviewed for this data are believed to be accurate and reliable,
but cannot be guaranteed.
Over the last two years, I have done enormous research on IBC, both in the US and
Canada - I have "tons" of information on IBC (both the pros & cons) - and I bought and studied 8+ excellent
books on IBC. As well, I've gotten to know (and comminicate with) some of the key IBC Special
Here in Canada, I have met the primary IBC Advisors (in BC) - who, in their
financial planning practices, also work with the only "mutual" life company in Canada who issues these
unique IBC contracts.
In the US, I've gotten to know some highly impressive professionals who are now totally
"specializing" with IBC - including a very successful Chiropractor, who actually gave up his lucrative holistic
wellness practice in order to concentrate strictly on IBC (in fact, his whole family is working
with him in his IBC business - and giving superb counsel & support regarding IBC to his IBC clients.
My Goal - As I've stated elsewhere, I have developed a passion for the
principles behind IBC. I believe that IBC is so important to your (our) financial health
that I felt compelled to put this Web Page together, to at least "expose" you to it - to give you some "basic"
information about it - to "guide" you, should you wish to explore the IBC further, with a fully trained IBC Special
Advisor. Let's continue...
What IS a Private Banking
What it is NOT - This (PBSystem) can help almost anyone (regardless of
age, income, or financial circumstances - and regardless of a broken economy) - reach their financial goals and
dreams, withour risk - without losing any sleep.
HOWEVER - if you spend more than you make, this is not for you. Or, if you're looking for a
silver bullet or a "get-rich-quick" scheme, you will surely be disappointed.
Ok first, a few personal comments about "money
No Cash Flow- Even in the present environment of "stable" interest rates,
we see one of the major problems that Nelson Nash (IBC's creator) identified
=> North American households pay their bills each month, only to
find there's "nothing left over!"
Another serious problem he saw was => the "average"
'Joe was no longer able to build real WEALTH for their future financial security, or to create a lasting
The truth is - most modern North Americans overspend, assume too much debt, and fail to invest
wisely for retirement. And sadly, most will not make a serious effort to learn HOW to (finally!) get out of that
Poor Advice - Adding to the problem - too many financial planners today are
dishing out the same 'commonplace' advice and investment recipes that were used decades ago - that steady diet of
stocks, bonds, gold, silver, real estate and mutual funds - with all of the usual risks and market
gyrations that may apply. This is not to say that "investing" is bad. No, only that there are always
"uncertainties" lurking. Such unknowns have caused a lot of "bleeding" over the past decade.
And even if a spouse takes a "second job" (if one can be found!), it seems there is no way to
really "get ahead". Many (most) households remain "one sickness, or accident, or layoff, away" from financial ruin.
Tragically, this creates extreme stress in the household.
There are many reasons for this, including punitive TAXES, as well as the economic 'boom-bust'
cycle itself. But Nash pointed out that much of the responsibility lies within households themselves - and
particularly in their attitudes to personal DEBT (especially in
Canada, where the current debt-to-income ratio is one of the world's highest)!
There is nothing "natural" about paying a huge fraction of disposable income to outside lenders
every month. The only reason it seems natural is that "everyone's doing it" - but our mothers supposedly refuted
that particular justification in our childhoods.
TAXES - a huge expenses for all of us. In fact, taxes can amount to
40%-60% of all the income we will earn during our lifetimes! It
single handedly is the largest "wealth transfer" we face - it certainly does not appear to be getting any
better, especially in the NEW global economy.
With the current deficit spending that is going on by our governments in the US, as well as Canada,
the DEBT our countries are racking up leaves very little doubt that TAX rates will need to
go UP. To see more on this => Click Here
INTEREST - Ask yourself - without looking - how much do you, or your
household, SPEND each month - purely on FINANCING charges (the interest paid). Write this 'guess' down. Then, the next time you pay the bills, try
to calculate the "actual" number - remembering that it includes not just "obvious" items (like the explicit finance
charges on credit cards), but also that component of "mortgage" and "vehicle" payments that does NOT go to
principal reduction (again, the interest paid).
The result will probably "shock" you. What this number means is - this is how much
extra income (cash flow) your household would have available each month - IF it's "debts"
magically disappeared (most of which is INTEREST)! It shows you how much "past"
decisions to accumulate debt (to spend beyond the household's means) at the time - are constricting the household's
"current" finances. To see more on this => Click Here
Nelson Nash also knew another "reality" of the NEW economy => that most traditional "investments" of the last two decades have not given the
results that were originally forecast - far from it.
In fact, he saw the ride as one of high RISK - leaving many (most) with horror stories of financial
LOSS - not accumulated WEALTH.
We are witnessing the greatest "wealth transfer" in the history of mankind, but if you are caught
on the wrong side of this transfer, you could end up losing all of your savings, your investments and your nest
However, if you are on the right side of the equation (post 2008), and you gain the correct
financial knowledge, you could increase your wealth exponentially - whether you are rich or poor - young or
THRIFT - The main theme that
Nelson Nash presents is quite simple: money management should be sound - private family bankers should be honest -
households should be frugal.
But somehow, the virtue of thrift (a penny
saved, is a penny earned) became yet another casualty of today's (so called) "modern" economics. Nelson
Nash advises that every North Americal household should go into the BANKING business - in addition to
utilizing whatever "other" sources of income it enjoys.
Confession! - Now, no one likes a pastor who claims to be sinless, and this
author freely admits to being just as suceptible to the (often perverted) vision of the so-called great "North
American dream" as anyone else! :>)
My point here is not to "wave my finger" at readers, nor to scold them for irresponsible
prodigality. On the contrary - my hope is to help them (you) by "diagnosing the problem". Once the PROBLEM is
identified - namely, taking on far too much external debt - the SOLUTION becomes blindingly
obvious - North American households need to begin "living within their means" - they need to start SAVING more -
they need to "postpone" big-ticket purchases - because they just don't have the money yet.
SOLUTION - It IS possible to salvage your household's financial situation,
despite the shackles put in place by powerful forces (media commercials bombarding us - the 'keeping up with the
Jones' pressures, etc, etc). But, you do not stand a chance if you allow these same forces to design your blueprint
for escape! When it comes to FINANCING decisions - North Americans should first, consult the (so called) lending
"experts" - then do the very opposite!
- But What IS a PBS?
PBS (Private Banking System) - To
understand the Private Banking System (PBS) - which stems from Nelson Nash's IBC
(Infinite Banking Concept) - you'll appreciate its "origin" better if you have an insight (just a very basic one)
to Austrian Economics => Click HereAlso, you'll need to get a grasp on some
financial concepts. In addition, you'll need to start wearing a different hat when it comes to how you
view your money. It’s time to put on the BANKER’s hat - to sit in their chair, and view
yourself from their eyes - to understand how they view YOUR money in their bank - how they
build assets on their own financial statements, and accumulate great wealth. By so doing, you will begin to lay
the foundation for YOUR financial future.
Note - Some refer to IBC (Infinite Banking Concept) as -
Bank On Yourself (BOY) - others, Private Banking System (PBS) - Capital Access Planning (CAP) - Private Family Bank
(PFB), Private Equity Banking (PEB), etc.
To see more on banking, and the IBC (Infinite Banking Concept)
=> Click Here => Here
Opportunity Cost - In BANKING, when you SPEND CASH to
purchase things - you'll need to understand exactly what that means to you in terms of COST (the
'opportunity cost'). You will need to get a sense of how important CAPITAL is, and how to use it wisely
(ALL capital has a cost - even yours)! You will soon discover some other "truths" that nobody has revealed to you
before now. To see more about the raw truth about "opportunity cost" => Click Here
Hidden Wealth Transfers - Excellent information on the REALITIES
=> Click Here + Here
Rate Of Return - You'll need to get an appreciation of the fact that it is
not the "rate of return" that is going to create wealth for you (yet most financial
planners and investment advisors usually talk about the "rate of return", as if that is what really matters). As
your knowledge of the IBC process grows, you'll learn different. See more on this
=> Click Here
Controlling the “banking equation” in your life will create wealth much faster than
investing ever will - and without the potential risks.
Managing the amount of money that you send to someone else (what you spend, on your
DEBT - particularly the INTEREST portion) - will be far more impactful to your own financial
situation than the "rate of return" will ever be.
And having a good understanding of, and appreciation for, the real power of compound
interest will help. See more on this => Click Here
Uncommon - BUT - the IBC process is a sharp paradigm
shift from where most of us are in our financial minds. It is different from what
we're used to. It goes "against the grain" of most traditional financial planning and 'financial
entertainment' gurus. It is a concept that has been around for at least 150 years, yet it is seldom ever discussed
by any Wall Street or Bay Street advisors as a means of generating wealth for their clients.
This is partly because most do not have "access" to the IBC process or financial
vehicle (and therefore, there's no financial incentive), but it's also because they stick to the "traditional"
means of building wealth (by "investing" in more risk prone financial vehicles) - and largely because, even
they do not know (or truly understand) the huge impact this (IBC) strategy can have on your
financial security, or more importantly, your future wealth. IBC is indeed "uncommon" to the vast majority in North
In a Nutshell - The concept is pretty simple. Rather than spend cash on a
'depreciating asset' and lose the opportunity cost as previously discussed, you save the capital
in a Private Banking System (through an IBC contract). When you need to make a purchase, you
"borrow" from it (your Private Family Bank). The important thing is that you must always treat the borrowing as a
bona fide LOAN - exactly as though the money had been borrowed from a lending institution,
such as the corner bank - and then repay it (back to your own Private Family Bank - into your IBC contract).
This process will build real wealth (safely) for you.
Establishing your (IBC) Private Family Bank - In order to make all this
work, you must first capitalize your private banking system. Similar to getting a regular
bank charter, a newly established Private Family Bank needs to have capital reserves in order to make
loans. Your Private Family Bank is no different. You need to have capital in order to make loans. So you'll have to
save, transfer in, or invest capital into our private banking system.
This funding can be rather quick, or may take a little time. It will
depend on your current income and your asset availability. But there are ways to do this without using any
"new" money too. To see more => Click Here
The simple truth is - if you use CASH, it should "always" have a firm COST associated with it. When
you "spend money" - whether you are buying a new vehicle, or a washer and dryer, cash/capital has a definite COST
attached with it. You would normally only have one of three (3) choices when making a purchase,
but I’m going to show you a fourth (4th) choice:
1) You can use "someone else’s" money (like the
corner bank's), by borrowing from them, and then PAY the interest to them + the original loan amount - for the use
of their money.
2) You can use "your own" cash/capital (savings)
and GIVE UP the interest that you 'could' have been earning, had you been able to keep your cash saved/invested.
This is called OPPORTUNITY COST - the cost of "lost income" (or return) due to disposing of your cash -
3) You can often "lease" your purchase, usually at
a lower monthly rate - but at the end of the lease, you have nothing.
4) This fourth option is "new" to most people. You can treat your cash
like businesses and corporations do - through the use of EVA (Economic Value Added) and
take LOANS on your own cash (capital injected into your Private Family Bank) and "pay the
loans back" - with both principal and interest. See more on this
=> Click Here
This way, your own capital is earning a rate of return, and you are paying YOURSELF (your bank) for
"the use of" that capital - rather than paying someone ELSE (corner bank) for the use of their capital.
In Options 1, 2 and 3, you will end up
with "nothing" to show for it, except the (now depreciated) item you purchased in 1 and 2. For instance, if you
bought a vehicle, you would end up with a vehicle, and whatever its depreciated value is.
In Option 4, you not only have your
(depreciated) vehicle, but you also have your "original capital" -AND- the "interest" you would have paid (either
to someone else, or lost, because you "used up" your savings/capital - the opportunity costs).
Note - By using your Private Family Bank, just to finance
your cars during your lifetime, you could accumulate all the money you need - to fund your
children's education - as well as your own retirement - and/or other
life goals! Yo
u can turn the financing of
your cars into an appreciating asset
Imagine the benefits of being
able to save for your retirement at the very same time that you are financing cars, financing a home, or financing
your children’s education. These are all things you're going to pay for anyway, but they would normally "take away"
from your retirement savings, instead of helping to build your retirement savings.
VEHICLE Purchasing - To see
more => Click Here => Here
Your net worth will start to increase substantially when making loans to "yourself" for the major
purchases (and expenditures) you make. There is no other choice. It is one of the four (4) above.
However, most people never know that there even IS an Option 4. And Option 4 will cost you absolutely
"no more" than the other Options - yet, look at the huge difference, and consider the enormous "potential"
available, when you use the principles of FINANCING (your current SPENDING) to build
wealth, safely - instead of INVESTING, to do it (with the possible risks).
Now consider this...
Building WEALTH -
Self-Financing -vs- Investing - The first way we mentioned
("self-financing") uses that much larger 30-35% of your income that you are "already" spending - whereas the second
way ("investing") uses that much smaller 5-10% of your "disposable" income (if you even have that much left!),
that most financial planners and investment advisors will try to play with (see Pie Chart above). See more
=> Click Here
Using the Right Financial TOOL
However, you will need the "right kind" of a Financial VEHICLE to make this happen (and thus,
IBC contracts) - to create your own Private Family Bank. See more => Click Here
For a morein depth look, for a better understanding of this
=> Click Here => Here
(( Click Above to
Private Family Bank - An IBC bank is very "special" - it
has only one DEPOSITOR - one BANKER - one
BORROWER - the one person who "owns" the (properly designed) IBC bank (and that's
In this way, the family (household) banking operation is NOT subjected to all the red tape and
regulations governing "commercial" banks - because the only person's WEALTH at issue is the one making the "premium
deposits" (YOU) into your own IBC contract (policy) - the financial vehicle used to "create" the Private
The KEY - Then, once this depositor has built up a significant amount of
CAPITAL in his or her BANK - he/she is ready to begin "making LOANS" to borrowers (to themselves) - by
SELF-financing what they're SPENDING money on - their major purchases, or expenditures.
Again, an IBC bank (Private Family Bank) is very different from a "conventional" bank - in that the
very first CUSTOMER (borrower) is going to be the "banker" himself (or herself). That is, the person practicing
IBC will begin "lending himself / herself" money whenever he/she needs to - buy that next vehicle
- pay for their daughter's wedding - go on vacation - purchase office equipment, etc.
Wealth Accumulation - As time pass, and the IBC process
yields an ever-growing stock-pile of available (tax free) CAPITAL, the household banker begins using IBC contract
Rare - This means that the IBC practitioner has "options"
available that are not available to the average North American. The IBC idea is sheer brilliance, in my opinion.
The genius of Nelson Nash's concept is that, many years ago, he identified a traditional (and proven) "financial
product" - sitting within everyone's grasp - and yet, escaping most everyone's notice.
Other Tools? - In principle, households could stockpile capital (savings)
by using "other" financial tools (GICs, TDs, CDs, Money Market Accounts, Annuities, etc) - and by so doing, still
establish their (IBC) Private Family Banks.
But as you will see, the most important thing we can do is protect the
capital. Your IBC bank needs to be guaranteed, completely safe, predictable, proven,
tax-advantaged, liquid, probate free - with no possibility of government interference, and more (this will become
extremely important for any Prvate Family Bank system).
So yes, "other" financial tools might be considered for establishing your bank - without using the
"chosen" financial vehicle - which are over-funded, high cash value, dividend paying, participating IBC contracts
((special life insurance policies, designed by experts,
available only from a few "mutual" life insurance companies, to conform to the strict IBC
specifications, with unique riders attached, etc)) - but the "other"
financial vehicles just don't measure up.
As mentioned elsewhere, these special IBC contracts are not well known by
the financial guru community - and/or they are very misunderstood. These are very different from what are
called traditional "whole life" policies. These (IBC contracts) will operate for you in a
way that a common WL contract cannot, once you understand them, and are guided by professionally trained IBC
experts. These special IBC contracts have extremely appealing criteria which, as mentioned, are simply not
available in the other possible contenders indicated above. To see more about the "mechanics" behind
IBC contracts => Click Here
Note - It should be clearly understood that the IBC process is not some
kind of "gimmick" - and it does not rely on some kind of "tax loophole". It is true that one of the
many unique advantages of IBC contracts (-vs- other possible approaches) is the highly "preferred tax
treatment" that these contracts enjoy.
Dividends - In particular, if policy DIVIDENDS are re-invested each year,
to purchase "additional (paid up) insurance", within the IBC contract - the extra capital growth that results
(accumulating cash values) are not subject to tax. And later on - if the owner elects to "withdraw" those dividend
payments, as "income" - these too, are completely TAX FREE - as are the RETIREMENT benefits - as well as the ESTATE
values (the death benefits).
Control- By gaining the correct financial knowledge - by having the right
mindset - by managing your money wisely - and by creating your own Private Family Bank (using the special
IBC contracts) - you can be "in full control" of your financial future.
In particular, with your own Private Family Bank, you will avoid "risk", and instead, you
will accumulate your capital far more "safely", by enjoying "contractually guaranteed" capital values - which
will increase your cash flow - strengthen your net worth - and build real WEALTH, in a totally different way
from what has been traditionally taught by most advisors (that of investing your "disposable" income,
incurring unnecessary high fees, and risk).
Using the IBC process, with your own Private Family Bank, you will be re-directing
that much larger 30-35% of your "current" SPENDING, towards building your eventual
financial freedom - not INVESTING that tiny 5-10% of (hard to find) "disposable" income! It doesn't get much better
than this - yet, this 'sleeping giant' concept is still one of the least known economic gems in today's
IBC - The PERFECT Financial Vehicle? - Check this out
=> Click Here
IBC Contracts -vs- Stocks & Mutual Funds - Important info on
=> Click Here
IBC - In Depth Look at the Financial TOOL 'Behind' IBC - Detailed
=> Click Here
IBC - for Small BUSINESS
The IBC strategy (a Privatized Banking System) is an outstanding way to create real wealth, safely,
for both families and businesses.
Businesses - However, "traditional" financial planning likely does not suit
your needs as a business owner today. Modern financial planning was not designed specifically for business owners.
For example, it can no longer be assumed that you will be in a "lower" tax bracket when you decide to sell your
business, retire, or reduce your working hours. In today's changing environment, business owners must maintain
access to capital, while still earning a good rate of return.
No matter what type of business you are in, there is always a need for more
capital. The same holds true for every sector and type of business, trade or profession
Think of the potential for attorneys, physicians, dentists, chiropractors, orthodontists,
naturopaths, acupuncturists, real estate investors, osteopaths, and every other business professional /
practitioner out there.
Private Banking Systems (through IBC - the Infinite Banking
Concept) are used for many different reasons, including: education, buying a practice, inventory, equipment,
payroll, remodeling, buying an office building, purchasing vehicles, etc, etc. Over a lifetime, most of these
business owners / practitioners will spend millions of dollars in purchases, and they will pay banks hundreds of
thousands of dollars for the "use" of their capital (the heavy
interest charges on their borrowings).
The IBC shows you how you can create your own private banking system, and put the
money you would otherwise lose - back into your own pocket.
As a business professional, you have spent lots of time & money learning your specialty, which
will serve you well. However, if you want to maximize your investment, you must spend more time & money, which
unfortunately, leaves no time to manage your finances.
This can lead to large "wealth transfers" (money leaving your pocket) such as: interest paid to
others, investment losses, and taxes. These common problems affect you as a business / practice owner, and as a
Now YOU can learn how to use the IBC to capitalize, expand your business - safeguard your family -
and create a predictable and substantial (tax free) retirement for yourself - not subject to the roller coaster
rides of the market!
Leasing - See this video on using IBC for leasing
=> Click Here
See more on using IBC for your business / practice => Click Here => Here
Lenders - Every year, business owners give billions of dollars in "interest charges, and
fees" to their commercial banks, finance companies, and credit cards. They do this, not out of ignorance, but out
of necessity - assuming that there is no other way to finance the needs of life - but, as you can see above - there
is. Now, you can reduce - or even eliminate - all LENDERS from your business /
As shown above, it has been estimated that the "average" North American pays between 30-35% of their income "servicing debts and interest payments". How can
financial success be achieved if roughly one-third of your cash flow is "given away" to outside institutions?
The simple answer is that it is exceptionally difficult to achieve success, if resources are being directed
away from the business (wealth transfers).
Example - IBC at Work for DENTISTS => Click Here => Here => Here
Private BUSINESS Bank - As with the Private FAMILY Bank system, the (IBC) process
can also enable you, as a business / practice owner, to inject previously lost dollars back into your business.
Business owners can re-direct capital back into their business, by making simple and effective changes to its
structure. This often means reassessing the commonly held beliefs that business owners have with regard to their
legal structures. For example, new and/or proposed tax law changes may force business owners to change how they
take income from their business.
Example - IBC at work for Dr. Tomas McFie (in OR, USA).
He actually "gave up" his lucrative 25-year career - 4 wellness practices (clinics in 3 states) - to
become an IBC Special Advisor, opening a full IBC practice, where his whole
family is engaged in helping people gain greater "financial" wellness!
I personally subscribe to Tom's outstanding Life-Benefits eNewsletter.
Also, I reviewed his new book ("Winning Your Financial G.A.M.E.") at
Amazon.com => Here
To learm more about this exceptional individual => Click Here => Here => Here
Change - If you run a business, the tax, lending, and banking environment
you once knew has changed drastically. Following the 2008 global economic meltdown, business owners now must deal
in the NEW economy. Reductions in bank lending alone, have drastically cut back on the amount of capital available
to business owners, and tax changes at federal, state or provincial levels require that business owners begin to
re-think their organizational structures, as their current business plans may no longer be sufficient to protect
your hard-earned wealth.
Note - Should you decide to establish a Private BUSINESS Bank, instead
of (or along with) a Private FAMILY Bank, be sure to check with your tax advisor, accountant and/or other
professional experts as well.
Special Training of IBC
IBC - Practitioner's CERTIFICATION Program- Some IBC
Practitioners will have gone through a rigorous educational program in order to serve you professionally. A new
IBC CERTIFICATION program was established for this. To learn the full details
=> Click Here
Here are a few "cautions" to be aware of with the IBC (infinite Banking
Loans - When you borrow money from your Private Family Bank, it
needs to be paid back. If you borrow, and invest in a “long shot” - and it doesn’t pan
out - guess what? You still need to pay the loan back - or your IBC bank will go “bankrupt” at
some point. Think about a restaurant. In the same way that you can’t “steal” from your bank - you can't eat the
profits of your restaurant.
In other words, it is extremely important that you are an “honest banker”
and that you don’t steal from your own bank.
Investing Your IBC Funds - So, be very careful about what you invest in
with YOUR borrowed funds. Be a prudent and wise steward of your funds, and make sure you have the wherewithal to
"pay back" those borrowed funds, with interest. It would be even more prudent to make sure you invest only in those
things that you are very comfortable will give you the full return OF your capital (not just
a return ON your capital)! :>)
There is NO FREE LUNCH - Do not “eat” the capital and/or the profits
of your banking system. Do not cheat yourself or your banking system. Pay at least as much - if not "more" than the
prevailing interest rates. Forget about 0% or 1% financing - this is your bank - you want it to make money - and
lots of it! :>)
It's a Process - To become a truly successful IBC practitioner, you do not
need to "slam on the brakes" and jam your financial throttle into "full reverse". NO.
You simply "begin where you ARE". Period. And a properly trained IBC Special
Advisor will patiently counsel you, if you seek his/her help. For starters, they will usually ask their IBC clients
to put their monthly budget under a microscope, with the goal of getting a much healthier picture for them, and
doing it as painlessly as possible. They will truly HELP you build wealth for your own future, and the futures of
your loved ones.
Loan Repayments - It is recommended that you set up "automatic withdrawal
payments" when repaying your loans (plus interest), so you never have to think about it. How much interest? If you
were the corner banker, how much interest would you like to charge? As much as you can 'stick' to this young couple
in front of you, right? Read on...
INTEREST On Your Loans - Actually it’s good to pay yourself MORE interest
than the "prevailing rate" (or what the insurance company charges you) - and then a bit MORE - just for good
measure. Several Private Banking owners use 12% as their normal
interest rate. In the end, this becomes a “forced” savings account, and it all comes back to you for YOUR use. So
don’t be afraid to charge yourself a "healthy" rate of interest!
It's YOUR Bank - The (mutual) insurance company who issued your IBC
contract does not care one bit about - nor does it get involved in - your payment schedule, or the interest you
charge yourself. That is up to YOU. You are the banker, and the more "often" you can use the same funds -
over, and over, and over again - the better it is for YOUR bank! Pay your loans back over a normal, or accelerated,
time frame - it does not matter - whatever is comfortable for you. Just be diligent in paying back the loan to your
OWN bank, and with (excess) INTEREST!
Poor Advice - Any amateur or uninformed IBC advisor can
get clients "excited" just by highlighting the many great features and benefits of IBC. That’s the easy part.
First, don’t over-commit. In fact, my own opinion is that you should always have an
"adequate cash reserve" built first - for "emergencies" - before commiting to an IBC contract. Ideally, this
includes a substantial reserve for an extended period of un/under-employment, as well as disability, emergency,
costly repairs, etc. Build your cash reserve now, and build it large enough to handle whatever comes your way!
First, Some TERM Coverage - Meanwhile, as you are building up your cash
reserve, you should look after your family's "life insurance" wants/needs - with only
convertible TERM insurance - FROM THE COMPANY WHOSE PERMANENT
PRODUCT YOU WISH TO OWN later (for your IBC contract).
If you can afford some portion of that IBC coverage in permanent insurance now, buy it now.
If not, buy only term protection, and "convert" it to an IBC contract - as you are confidently "able" to in the
I’m seeing more and more examples of people buying convertible term (fully convertible to the
permanent product they want to own later) - until they can get their economic house in order. Even more critical,
with young children, is that you are PROPERLY INSURED. This is often accomplished with some combination of term if
household income doesn’t cover an all-permanent plan.
Ideally, “extra” cash reserves can then be systematically moved into permanent
(IBC) contracts, picking up numerous benefits, with surprisingly little loss of overall
IBC - 'Maintaining' Premium Deposits - I would want IBC
Special Advisors to see their clients being able to "sustain on-going premium deposits" - without any fear of
interruption. Otherwise, problems could arise. Except for "single deposit" funding, if (on-going) policy premium
deposits must come from income - I would want any potential IBC client to be very
confident in the "sustainability" of that income stream.
Otherwise, I would want to see the premiums flowing in from "other
assets" - places that would give a high level of certainty that they’ll be there when
IUL -vs- WL? - People who I respect have had opportunities over the years
to play with the illustration software from the major carriers who offer Indexed Universal
Life (IUL) as the "financial tool" for their IBC contracts – at least from the ones
that offer the most competitive products, and have strong financial ratings.
Time and again, I have seen them reach this same conclusion - and that is that a good,
participating, high cash value Whole Life policy wins in almost all scenarios. When the
IUL contract is “stress tested” - by reducing annual returns below about 6-6.5% - the whole thing
seems to "crash" (policy failure). If premiums were reduced for a period of time, this could also result in a
crash. And yet another “moving part” is the mortality charges, which the company can
change at will.
These experts have tried hard to be completely objective, and justify these IUL
contracts, but they have always reached the same conclusion - it will always be a top-quality, dividend-paying
Whole Life policy that wins out.
Other options may "sound" appealing, but it seems that there are simply too many “moving parts”. I
for one, am not willing to trust any company with “moving parts”, because if they can be moved, they will be moved
- it’s only a matter of time. Too many IUL policies have 'imploded' over the years - and it
appears that it may still be going on.
More - To see a much deeper look at the financial tool "behind" IBC
=> Click Here => Here
Integrity - It takes a true ethical professional TO CARE ENOUGH ABOUT
HIS/HER CLIENT to present a balanced view, equally highlighting the good, and the potentially harmful, aspects -
the opportunities as well as the risks – BEFORE TAKING THE (IBC) APPLICATION.
Such professional experts are available in Canada and the US, and well trained in the
Note - The Infinite Banking Concept itself will not fail - but "people"
will fail - when they misunderstand it and/or misapply it, and they aren’t adequately prepared for a variety of
potentialities. There is no substitute for Infinite Banking (IBC) - and it can certainly bring
tremendous long-term value to a family, but - like a Ferrari - it must be handled with due care and respect.
Always remember - it is YOUR bank - it will create authentic WEALTH for you over
time - if you use it wisely.
Bottom Line - You'll need to - have an open mind - be 'in sync' with your
spouse or partner on this - be able to think 'outside the box' - maintain a long term view of your financial goals
- be patient - and be disciplined.
With IBC, you will be using time tested financial principles that cannot fail. In
return, YOU will be able to enjoy an abundant life, with financial rewards that very few can ever have.
Life truly is what you "perceive" it to be - and if you perceive lack, or scarcity, or limiting
beliefs around money or self worth, that’s what the universe will reinforce for you. But if you perceive abundance,
interconnection, confidence and purpose, then you will get that reality mirrored right back to you - you will
embrace fulfillment - and you will have real freedom in your life.
But recognizing the intimate connection between your own "perceptions" of life, and the
"circumstances" around your life, is one of the fundamental entry points into empowered and joyous
A Toast - I invite you to draw a line in the sand right now, and
commit to the mindset of a higher expression - of who you are - of what you’re worth, and
of the exciting goals that you'll accomplish in this lifetime - physically, mentally, spiritually and
OTHER Sites - Targeted to 'Health Care Professionals' =>
Here => Here => Here
IBC - Education - Become well informed (books on - endorsements of,
etc) => Click Here
IBC (Infinite Banking Concept) - For more information, check out main
site => Click Here
( the Primary IBC Site