Articles

Infinite Banking Concept Debt Weapon Exposed Free Training

July 26, 2019



greetings thank you very much for joining me again today my name is Matthew pill Moore I'm president of VIP financial education and this is another free training of our installment curriculum based on cashflow maximization and this truly is secrets that your bank won't teach you this class is known as our infinite banking concept it's probably our most anticipated out of all of the classes that we've created for your benefit it is a debt weapons exposed curriculum where we're going to talk specifically about the infinite banking concept and really just pull back the curtain on it so that you can understand what it means when people are out there trying to use this as a marketing tool the objectives here today include exposing the truth behind this concept secondly we want to teach you how to think not what to think we want to show you how to gradually eliminate the need for banks over time this doesn't mean that you will stop using banks entirely but if you can stack the odds more in your favor and creating more mutually beneficial relationship with the banks this program and this particular debt weapon can contribute greatly to that and finally we want to show you steps to prevent tens of thousands of dollars on future loans how would you like to save tens of thousands of dollars without adjusting or sacrificing inside your lifestyle sounds good right now we're going to show you all of the steps necessary to do that and in exchange for your time and feedback we're also going to be giving you some gifts at the end so please stay all the way until the end and take a few moments in order to complete the feedback form that will electronically appear on your computer screen once this class is over now we've done a background check for you on our guest expert for today's training first and foremost the paradigm group which Eric kromm is a partner of they currently have an A rating with the Better Business Bureau and you may ask yourself why did I pick Eric to help me teach today's class first and foremost they are consumer advocate approved which is important to me the infinite banking concept requires an expertise that very few people I've encountered actually have Eric being one of those people he's been a participant in the infinite banking concept think tank and he's educated thousands on today's concept he's an active educator in the real estate community which a lot of people are partnering this particular debt weapon with their other investment strategies and he's a retirement planner slash expert and investment adviser and the thing about this is that we're not here today to try and promote Eric his services or using him inside your planning process we're here today to help open your eyes expose you to again a way to think where you can actually kind of start questioning things and and and create a paradigm shift for yourself which is kind of how their company name paradigm group came to be so we've brought Eric in to help you with that and allow you to work with your financial planner in a more successful way uh Eric was in the lending industry for many many years so he understands what VIP is doing how we're helping you understand how the bank generally makes money and again stack more of the odds in your favor than you may otherwise be doing he's very active as an educator and an expert he's hosted comprehensive talk radio shows on KOAT okay how Colorado Public Radio and many many other things that just quite frankly wouldn't even fit on this list so I'm going to introduce Eric here in a moment but before I do let's go over just a couple housekeeping details as usual this presentation is for educational purposes only numbers will be estimated we do so an attempt to be conservative with them to help simplify the training for both you and us the educators but you will love this class just like you do all of our other trainings it is extremely content rich we're not here to provide you a bunch of fluff and dangle the carrot or tell you half the story we really do want you to get all of your questions answered and then provide you the ability to get questions we're unable to answer during this training on a one-on-one basis the training however is not a substitute for financial investment legal or tax advice and it's also not a promotion for Eric or my products or services so we're not here to try and sell you anything makes sense at some point for us to work together then we can certainly talk about that however I will say this you need to do your due diligence I have selected Eric out of a number of different potential people to help provide you this training here today but it is not me suggesting you work with him in any way shape or form you need to work with the person that you feel comfortable with them if somebody has referred you to this class who is a an expert in investing and investment tools I would suggest you start with that person for guidance pertaining to your specific situation or the governing laws in your state please consult with specialists in your area as many of them as you see is necessary in order to get you the answers you need to make intelligent decisions there will be a free counseling session that is included as a second part to today's online class to help you safely understand how the infinite banking concept applies to your goals should that be something that you choose to take advantage of in order to get the most out of today's class just like all of our online trainings your undivided attention is needed which means turn off your phone try and remain distraction free it's not easy when you're watching something online take notes and write down your questions as you go because the second part will give you the opportunity to get those questions answered which is that individual personal counseling session there will be additional bonuses provided at the end if you have the endurance to make it that far now before a solution comes a problem right there's nothing to solve if you don't have a problem so let's address that problem the VIP money bank Pig wonders this if it's actually true that if all the money in the world was distributed equally among all the people within 10 years some say that 97% of the money would be controlled by 3% of the people so who are those 3% with that introduction I'd like to go ahead and bring Eric kromm into the conversation Eric how are you today I'm doing well Matt thanks for having me this is a concept as you mentioned that you hear a lot about and it's one of those concepts that you really need to be careful time stand I love it and I love teaching people about it so I'm certainly glad to be here today okay great so let's continue talking a little bit about the problem that demands a solution and I believe that you can't do that with without one of the key players the bank right dun dun dun you got it the of course nobody is ever going to be able to test this theory but the reason that we talk about ninety seven percent of the wealth being back in the hands of three percent of the population is because of the idea that there's only one pool of money in the world and that unless you prevent it it will end up back in the banks now most of you are fully aware and if you aren't by now you've probably been under a rock because 2008 taught us once again of the importance of the Bank and power of the banks in our lives they are the single most important entity that we have in fact the government is willing to put us in trillions of dollars in debt just to save the banks and the key here is banks are not just the most important business in the world banking is not just the most important and the most powerful business in the world but more importantly it is the most profitable business in the world in fact 36 percent of every dollar spent by the average American in this country is spent on interest okay that's through a variety of non mortgage related debts including housing I take it housing cars living expenses and we're going to go into this in more detail but you really benefit from understanding this concept 36 percent of every dollar now some of you may be thinking there's no way that this could be true because I've never had an interest rate even close to 36 percent and I used to think that way too let me stop you there because I actually had created a slide to help us I understand this a little bit more clearly in an example that we've gone through in great detail through a current coaching membership student of Dan and Megan Albright now you may remember in the 100% debt free for life class which hopefully you've attended by now that the subjects of case study dan and megan had a variety of current outstanding balances now when we first started working with them they did not have a mortgage but what we went ahead and did here on this graph Eric was include the mortgage that they acquired after they paid off their non mortgage related debts so I just wanted to point this out in order to help substantiate the statement that you made where at least 36 percent of the average consumers payments are going towards interest and that's a that's a statement relating to the volume being the significance versus the actual rate itself and we talked a lot about that in our debt free class right yeah that's right the fact first of all if this is not what you look like maybe you buy everything in cash maybe you don't have this kind of debt maybe you have more let's go through this real quick in order to help the listener understand what we're looking at here okay so we've got automobiles here $35,000 total automobiles you may remember there was a cash flow cruncher that was provided to Dan and Megan that they completed in advance of starting their work with VIP to help them accelerate the elimination of their debt designing a plan and sticking with it and so forth so this is a an image of that that spreadsheet and now everybody here who is listening today if you don't yet have a copy of your cash flow cruncher spreadsheet then we're here to give you one and we're going to do that at no charge that'll be a bonus that is provided towards the end of today's training we'll talk a little bit about that but you can see down here at the bottom there's a number of different pages that are included with this cash flow cruncher spreadsheet one of them being revenue and assets you've got a debts page living expenses tab if you're in business maybe you're an independent business owner you have a small company you can include business expenses and then action steps so with that being said I just wanted to give you a reminder of exactly what we're talking about as we are looking at this here because when we first saw their cash flow cruncher they had $35,000 in approximate automobile balances and a total of approximately fourteen thousand nine hundred in credit card balances and as you can see here these were the minimum payments that were due now even with the interest rates what they were which is slightly irrelevant in my opinion you can see that the interest cost each month total 291 and 142 and the principle being 452 and 242 left the total volume of interest percentage at 38 percent 37 percent so this falls right in line with what you're talking about right here yeah the interest rates on these debts that you're looking at are nowhere near 38 and 37 percent in fact on that mortgage I believe the interest rate is 5.2 percent so we're talking about the importance being what was the first thing that you said in your head or that you thought about when I said 36 percent of every dollar was spent on interest and the answer is most people go directly to interest rate they think about the interest rate that they are paying or that they've paid over their lifetime and I'm here to tell you that banks don't work that way they want you to focus on interest rate because if you focus on the rate of interest that you're paying you neglect the main issue which is what you're seeing at the top here and in this in the red circle which is the volume of interest that you pay this is one of the ways that the banks in my opinion have the rule stacked against you because you think about interest rate and you don't think about volume but at the end of the day what if you added up all the interest that you paid over your lifetime what would it look like in volume how much money would that add back to your life if you could avoid paying those levels of interest out and we're able to recapture some and that is largely what the infinite banking concept is all about so here's the thing we've talked so far about the power and the importance of the bank but we've also talked about the profitability of the bank I don't think any of you doubt that banks are extremely powerful extremely important and very profitable can I ask you one question of course how many people out of a hundred who might see this class if asks the question do the banks design their rules in favor of you and me the consumers would say that they are well I think I think most 100 percent probably are aware that the banks stacked the rules against them the interesting thing is I don't think most people understand how or what to do about it maybe well that's definitely true and that's really again the uniqueness of the infinite banking solution this is not the only place that you should put money this is not the only retirement account on and on and on well how are bank's profitable the banks need three things to happen to be profitable and the first is that they need folks to save money they need savers to acquire the resources to be able to become a bank and so what they need to do is they need to incentivize you and I to save money now we can all argue to what blue in the face about whether or not you're really incentivized to use a bank but at this point we're looking for the convenience and the safety and the protection that's provided by a bank and right now that's incentive enough for most of us to use a bank but the key thing here is the bank needs a saver and all of you have to save so the bank benefits not only from needing someone to save but from the idea that all of you need a place to save money as well in addition to savers the banks also need to make loans banks don't make money in large part unless they're not loaning their money unless that money is not moving through their hands and so they also benefit from the fact that in addition to all of you needing a place to save all of you need to buy things to take care of lifetimes needs and wants so you are a consumer and the bank is very clear about what they give you in that regard they give you capital they give you money to be able to buy things okay so the two first parts that a bank needs is savers to put their money in and they need to incentivize you as the saver consumers who want to buy things and they need to provide you with that capital here's what they need to be successful the bank needs most importantly the loans that they make to be paid back we saw in 2008 what happens to a bank when loans are not performing when they don't get paid back and what the bank must have is they not only need the loans to be paid back but they must charge an accurate rate or enough rate of interest to be able to profit okay so again here's the idea banks are extremely important they're also very profitable banks need to have savers consumers and loans to be paid back and all of you have to save and you all want to buy things you're saying they they have the opportunity than to reinvest the profits right and we talked about this in some of our other classes but the way that you've designed your slide here just looks a little different so it's a different way of looking at the exact same thing which I like about it because we discuss the benefits of being a so-called saver which includes checking and savings and we talk about money being unemployed now you've seen our class you remember when I say that approximately 3/4 of your lifetime if your money is sitting in a checking in a savings account because you you got paid for the hard work that you've been putting forth for the last two weeks and you deposit that money it sits in there unemployed until you use it right yeah and the bank needs that because they then take that money and they reinvest it right absolutely there if you think about what the banking equation is doing it and remember this is about the banking equation in your life the saver is not getting a great deal here even though we get the convenience because as you said their money is unemployed because they're really not earning anything right we know the bank for these reasons right but the little interest is almost an insulting amount for me personally right well it's certainly not incentive enough for me to want to use a bank because can I get liquidity can I get safety and convenience in another place now again this is not your checking account this is your savings account yes you can in a lot of ways I believe you can duplicate the safety and the access to money but you can do better when it comes to making money on your money so this reinvestment of profits and reinvestment of deposits provides a substantial return on that investment to the bank correct the reality is the bank is the big winner here in this equation but from both the saver and the consumer and interestingly enough you you're both that's right Mehta and I'm both so basically you are lending me your money and I'm paying the middle person being the bank the interest returned right that's exactly right because the reality is that a bank doesn't sell a product they don't ship a product it's a simple business based on transactions and this is extremely important when we think about the infinite banking concept there's going to be three parts to today and the first part that we're covering is how a bank works and again if we think about what we've covered so far if banks are extremely profitable and that's proven out by the fact that the volume of interest that nearly every one of you has paid over your lifetime is large and a bank needs three things to happen to be profitable there's a saver which all of you are there's a purchaser a consumer which all of you are the bank simply controls the money it's just a business based on transactions and here's the beauty about that if the bank doesn't sell anything and they don't ship anything and it's a business based on transactions all they really do is control money and now what you need to ask yourself is do I really want to let the bank control the money or could I benefit could I reap some of the benefits that I give away to the bank by controlling those dollars and that my friends is the most important part about what the infinite banking concept provides so being able to understand our options is important here one option obviously I think would be work by cash only right yeah not realistic well a lot of you certainly a lot of my clients buy things in cash but here's the issue if you save in a bank and you put your money into the bank and receive virtually nothing as by way of interest from the bank you two are losing money to the bank so even though you may not be paying out thirty six percent of every dollar and interest you're over your lifetime you're giving up thousands of dollars by not earning on your money and we're going to talk a little bit more about that in just a few slides right that's absolutely correct okay so the another option might be to utilize traditional banking methods and just kind of stay the course which as we're starting to realize may not be the least expensive approach yeah you know you saw in the interests lie how much money you'll pay to the banking institution if you stick with the traditional methods but here's the thing whether you work by cash only or whether you finance and borrow a bunch from the banks at ultimate ly what you're doing is you're giving up thousands of dollars by way of paying interest out or by way of not earning interest and if you look over a 20 30 40 year life span of what you've lost there are major impacts positive impacts that you can be making in your life right now if you have the discipline and the wherewithal to be able to to redirect some of this money and recapture that for you and your family which leads me to utilizing debt weapons properly on for example the infinite banking concept so before we dive into the specifics behind the infinite banking concept because I can probably assume that your curiosity is starting to grow let's refresh your memory about debt weapons which was originally taught to you in the 100% debt free for life training that we provided to you at no charge as you may remember debt weapons ultimately are here to create safety and by virtue of their name it can be a little confusing for people because you may automatically attach the term debt weapon to your liabilities but in reality debt weapons for the most part are designed to help you maximize cash flow now VIP defines cash flow as the difference between what you earn on a monthly basis and what you spend on a monthly basis and we use averages to calculate that number because if you're an independent business owner and you're paid inconsistently then obviously your cash flow is going to be a variable number but it's a variable for everybody even people who are W tuned and paid consistently you know those folks still have unpredictable expenses every single month so maximizing cash flow is the first purpose of a debt weapon and it is not by coincidence that that's at the top of the list we're just going to go over all six purposes right now and I'm going to spend a little more time describing these slides than I did in the 100% debt free for life class because a lot of people crave more detail about this we just don't have time in each class to spend focused on every topic next compress amortization schedule so what we're allowing our selves to do with debt weapons and proper execution of using them is shorten the lifespan of the leverage that we're using and a lot of times that leverage is provided by the banks for example a mortgage you know a mortgages for many people a three hundred and sixty month term thirty years but in reality you don't have to borrow that money for a thirty-year timeline if you could shorten it and pay it off in let's say twenty five percent of the time would that not be something you'd want to explore it should be so that's what we allow ourselves the opportunity to consider when we use debt weapons properly third you get to create better bank accounts to refresh your memory as I mentioned just a few moments ago when you use your banking accounts checking and savings the way that the bank requests your money is sitting unemployed for as much as three quarters of your lifetime so three quarters of the month anywhere between 20 to 28 days of the month your money just sits in the bank waiting to be used and when that happens you're not earning anything or you're earning very little if you could actually put that money to work for as much as 100 percent of the year would that not be something that you'd like to consider it should be so we're going to look at replacing the inadequacy of our bank accounts and the infinite banking concept becomes one opportunity to do that fourth you get to invest your your money more quickly and safely the bottom line about cash flow is that it gives you choices so again cash flow being defined is the difference between what you learn and what you spend so that's either a positive number or a negative number if you spend more than you earn then obviously negative cash flow is a reality of your life but when you have more money left over at the end of each month than you do now you have more choices those choices could include accelerating the elimination of debt which we consider an investment by the way it could include stocks bonds annuities insurance real estate it could include traveling the world investing in your lifestyle so investment choices are yours but ultimately require cash flow fifth they minimize the volume of interest that you pay again Eric brought up a great point that we've alluded to many times in the past which is concentrate on the amount of interest that you paid throughout your lifetime yeah again the banks have conditioned everyone to think about interest rate and if you can just simply change one part of the way you view your money which is to focus on the volume I think it adds a tremendous potential to the things that you can do to positively impact your financial situation good the final purpose of a debt weapon when used properly is to enhance your FICO scores and preserve a 760 or better we're going to talk about that now you have to have a minimum credit score of a 700 or better in most cases to access debt weapons and we can help you with that process identifying the key answers you need to actually go out and acquire debt weapons and you can get between two thousand to a hundred and fifty thousand dollars per debt weapon with a seven hundred or better FICO score now if you don't have that score that's okay we can help drive that score higher with the correct education so again you need a 700 or better and there are score maximization solutions that are far more effective than credit repair so don't despair if you don't have the score you need if you've gone through some challenges in life and you were thrown a couple curveballs that's okay we can actually provide you the education you need to drive those upwards at no cost again the target score though is a seven sixty or better so if you don't have a high credit score of a 760 which is your fair Isaac credit score and that score can be located at my FICO com or just go to our website and you'll find the credit scoring options there on the right menu a less-than-perfect credit score can end up costing you as much as sixty four thousand dollars over just a five year period of time you know five years is only 60 months so that's over a thousand dollars a month in cash flow and when you see all of our classes combined you start to realize the significance of that kind of monthly cash flow and what it can do for you over a period of time just so you know credit scoring requirements are subject to change over time we can't control the rules of the bank's unfortunately but we are aware of what those rules are doing at any given moment in time here's what it looks like if you do enroll as a VIP cash flow cashflow maximization or accelerated debt elimination student we do help you maximize your credit scores and and educate you on the steps needed to do that this is just a screenshot of one of the accounts an example account of what the accounts do look like when we're driving credit scores higher this is a bonus it's free to all VIP students and it does generally cost fifteen hundred dollars per participant so that is individualized if you're married you and your spouse would have to have that but again it's completely free to our students there's a slide of the results that are possible in your credit scoring again credit scores are such a significant piece to acquiring debt weapons and one thing I love about the infinite banking concept is that it doesn't actually require a minimum credit score is that right Erick yeah you're not financing anything from a bank there's nothing that any part of the infinite banking concept has in it that involves the traditional banking institution or relationship but you do have to qualify for it correct you do have to qualify for it we're gonna cut on what that means and how that works here in a little bit but it's not through credit or traditional banking methods okay now one thing I want to remind you about that I've said over and over and over again it's that at no point time are you ever done looking for new debt weapons so we always want more so you should never be satisfied with the number of debt weapons that you have and contrary to many of the educators that are teaching about credit there's no such thing as having too much credit no such thing as having too much credit the only time that you potentially could have access to too much credit is if you just don't have enough fiscal responsibility to manage the availability of that credit well enough but you can see the potential of some of the education provided about credit scoring maximization techniques and you can see this particular student we took a screenshot of this individual when we first met them and you can see their score was down here by the 550 mark it was at a 549 and just over an 11 month period you can see the score climbed with 696 this is actually a screenshot from my FICO so with just a few basic techniques and methodologies explain this individual was able to drive their scores much much higher very quickly now the answers that you're going to need to seek in order to acquire the right types of debt weapons for yourself over time include which debt weapon should I get where do I go to get it when should I apply for it and what purpose will it serve once I have it now again we're focusing on one specific debt weapon here today known as the infinite banking concept and it's our goal to dispel a lot of the myths that come with that debt weapon but it's very important for you to understand the answers to these questions before you go out and attempt to acquire any debt weapon including the one we're going to talk about in detail today we do research on these debt weapons and spend anywhere between five to fifteen hours every single week in order to understand the answers to these four questions ourselves so anytime somebody engages in our cash flow coaching we do actually help provide the answers to these questions to those individuals so if you don't want to spend that kind of time yourself that's okay we can help you do that provided that you're qualified for that service you get the key to a debt weapon is really understanding what the dangers are okay there are a number of different dangers we're going to talk about the dangers of the infinite banking concept here today but there are dangerous to every type of debt weapon and unless you understand those dangers you can certainly put yourself in harm's way one final warning to debt weapons before we move forward includes minimizing credit available to yourself if you are not financially responsible so if you have absolutely no control over yourself you should not have access to capital but let me warn you that if that sounds like you boy all I can do is wish you luck because you then wouldn't be able to manage even money in the bank okay availability of credit is no different than having availability in a liquid form of any sort so you if you had $10,000 in the bank just like you had $10,000 on a credit card theoretically you would spend through that the same way that you would spend on your credit card and frankly I'm not quite sure how your financial goals will come true if that sounds like you so discipline is the key to your success but in the end debt weapons will help create safety for you your family and future generations so let's fresh on the debt weapons that we use every single day we're going to go through this list quickly and then any type of any further definitions that you may need just reference back to your cash flow cruncher as you can see here when you go all the way to the left there's a tab down here a glossary of terms that will include further definitions of each one of these acronyms okay so this one is mortgages we do have a free class about mortgages personal lines of credit is the second business lines of credit is the third helix stands for home equity lines of credit which is a secured form of a debt weapon s locks which also stands for secured lines of credit CDs business credit cards and consumer credit cards the top section here our debt weapons that are currently offered by the banks and there are a number more but these are the ones that we find most popular and most useful for the goals that our students are attempting to achieve the lower level here includes debt weapons that are offered outside of the banking institutions okay anything you see in gold includes a free class where you can actually see us expound on the details behind that specific subject and the one here in blue is the one that you're attending here today okay so make sure you attend all those classes and those will be provided to you in the form of a bonus through email so I would encourage you to take advantage of those invitations the key to a debt weapon Eric that we've seen really benefit people in their ability to achieve their longer-term goals over time includes the power behind what we call cash flow stacking which includes a very specific three-step technique where they can use these debt weapons in order to acquire income producing assets those income producing assets are then used where we apply a technique called paycheck or revenue parking back into the debt weapon which is then again used to acquire more income producing assets and this cycle continues where the momentum begins to accelerate faster and faster and faster and in some of our classes you can even see people who have not only purchased income producing assets for example real estate but have also been able to pay the leverage that they used to acquire that asset in an unbelievably short period of time because the cash flow stacking gives them that type of speed or momentum with which they can do that where most of us are convinced from an investment standpoint to give money to some other institution and wait for the interest to acquire or accumulate with the infinite banking concept and and the banking process in general the idea is that you don't necessarily need to leave money sitting the idea is to have money move and that movement of money can increase the volume of interest that you earn over your lifetime so there's definitely some synergy on that aspect so let's dive right into the infinite banking concept start to pull this curtain back because frankly I'm a little bit annoyed by the way this debt weapon is being sold to to us as consumers and I really want the listener to understand some somewhat of the origin behind this so can you tell us a little bit about the infinite banking concept yeah I guess here's the first thing what you've heard so far is obviously pretty compelling when it comes to the idea that infinite banking is about solving the banking equation in your life how do you profit to some extent like the banks and the fact that you have to save and you have to buy things means that it's already happening in your life so if you could control the money what benefit would that bring to the table anytime there is a concept that at face value seems so good there's a there's an opportunity for things to be misleading when it comes to how the consumer learns about this concept and so in my opinion there's only one clear-cut way to learn this concept and it's through the founder R Nelson nasty looking at the cover of his book becoming your own banker Nelson spent 40 years in Austrian economics and this is really really important because he has a very clear economic approach to this thing this is not a get-rich-quick scheme this is not a way to make $100 quickly either this is a long term monetary system as Nelson would say which is a way for you and your family to create a family bang and solve what we call the banking equation in your lifetime Nelsons also wasn't he was also an active real estate investor for forty five years and this is really important because how Nelson came about discovering the infinite banking concept was that he owned a large number of properties back in the early 1980s when interest rates went skyrocketing he has as he tells in his book about a half a million dollar line of credit which had moved up to a twenty three percent rate of interest and so he was looking for ways to solve this problem in his life which is how he came upon the infinite banking concept and then lastly we're gonna talk a little bit about the vehicle that you that you must use if you want to execute this concept the way Nelson created it and that is a life insurance policy and again we're going to cover that in a lot of detail but Nelson spent thirty years as an agent for two major life insurance companies which speaks to his expertise in the area well let's talk about that now what are the characters that are involved in order to successfully use this concept so we're going to talk about three characters they're actors in the play so to speak number one is the banking process we've talked about what the banking process is the transactional nature and the profitability that it brings to the table so that's what you need to know if you don't believe that banks are profitable you probably don't need to listen any further if you don't believe that you would like to benefit from that profitability and understand that all it takes is controlling your money and a level of discipline then you're also not right as well and that is the second piece which is overcoming human elements as you said earlier mat discipline is the key it's the key to what you teach and it's the key to the infinite banking concept there are several human elements that we must overcome every single day if we want to be successful with the infinite banking concept and lastly is if I understand how profitable banking is and I want to put it in my life and I can overcome the human factors that are important for me to do it what vehicle is best to to use to provide me with the benefits of infinite banking and the answer is dividend paying life insurance and so we're going to cover we've already covered the profitability of the banks but we're going to spend some time on the human elements and the vehicle of life insurance as we move a little farther well that's good because I've already got one foot out the door the second I hear life insurance buddy I you know I got to tell you my my red flag start going off and I start getting a little bit concerned and I really like to act on behalf of today's listener because you know they're not here to ask you the tough question so are you ready to dive in and start answering some of those for us and helping us understand why what everything I've potentially heard about life insurance should be second-guessed yeah absolutely you know again this is just like what you teach we're not talking about things that you most of you have never heard before we're talking about a lot of things that you've already been exposed to but it's a different way of viewing and life insurance in my experience in this industry and I work on on all sides of this of the financial planning industry but in my experience life insurance is the most misunderstood vehicle when it comes to how to plan for your financial future let's talk about the confusing nature behind this specific vehicle because to me it leads to some illusory marketing tactics I mean do you find that that's true as well yeah without a doubt like I said anytime that the concepts are very attractive it opens the door for people to be taken advantage of I'm not saying that any of these names here are are specifically places where you'll be taken advantage of but again I believe personally that the infinite banking concept that top one because certainly other people have tried to duplicate what Nelson's done I believe that the true pure infinite banking philosophy concept and process is best suited by learning through the infinite banking concept and there certainly are individuals whether it be salespeople whether it be people writing books whether it be people who have websites there's a lot of people who I think pick out the few really attractive benefits of the infinite banking concept and don't spend enough time on some of those human elements some of those banking principles that really are the key to making this thing work well the most authentic version of any of these titles here right which is really all the same thing just a different name different rapper the same exact thing so so the origin or the authenticity of this concept was conceived by Nelson so why wouldn't we be listening to the so-called creator of this idea right absolutely I mean I again I've looked at all the other ones and I continue to come back to Nelson Nash because I believe that the purity and the depth that he that he looks at what this concept is far in a way the like I said the most authentic version so in order for us to understand the vehicle that's necessary that you're describing we must then understand insurance and the way I understand it as a real beginner on the subject includes both a combination of term and permanent life insurance correct yeah most young people have been exposed to one type of insurance and that's term insurance and what term does is provide protection for your family so it's more of a traditional life insurance in my opinion which means that there's no cash buildup well what a CV stamp or does that stand for cash that's part of the cash buildup okay cash value approaches the cash buildup there's no cash buildup inside of a term insurance policy as you can see here at the bottom it provides short term protection so that's really the idea is that there's a death benefit in the unlikely event that as a young person you die sooner than you had hoped you have protection for your family and it although it initially costs less Penn State did a study that shows 99% of term insurance policies lapse which means that there are greater long-term costs which means at some point term insurance no longer becomes cost effective your kids are gone houses are paid off you don't necessarily need the income protection anymore and so it goes away okay so what you're saying is it lapses because it becomes difficult to afford it it just doesn't make sense from an economic standpoint for me to continue to fund this policy due to the policy premium yep at some point as you can imagine you get closer to death expenses are gonna rise in a policy like this and it's going to be too expensive for most people compared to the permanent life insurance side what do we have here well permanent life really at particularly when you use it for the infinite banking concept it's all about the live benefits not the death benefits now we can talk a little bit more about what that means right because to me that doesn't mean a lot and to the listener the living benefits compared to the death benefit stuff tell us a little bit more when you know the the traditional sense of life insurance is that when you die your families get paid because you had a policy but most people are unaware that with a permanent life insurance policy there's cash value which acts as a saving component and although the masses don't use it that way you're going to see here that there's some pretty powerful places where cash value has been used and is used it's been around for hundreds of years it's a really powerful concept to understand the cash benefits the living benefits and in fact nelson's concept the infinite banking concept is really built upon reverse engineering for lack of a better term a life insurance policy and so rather than focusing on the cash benefits that could be accumulate or excuse me the death benefits that can be built in it's really focused entirely on the cash value or the living benefits that you can use that you can benefit from in your life you don't need to die to realize these benefits so even what if I'm if I'm understanding you correctly here Eric even though this type of policy may initially cost more than a term policy a percentage and perhaps even a significant percentage depending on how this policy is designed is going into this cash value so the cost is acting as the saving slash investment yeah here's the thing again you offered this up at the beginning if you already have an agent in your life I'll be happy to talk to them about how to build this policy the way that you need to for infinite banking but the reality is that because of the growth of cash because of the cash value growth you'll end up with more money than you put in into a policy over time whereas with term insurance it's all cost there's no cash so you're never going to get any cash value or any living benefits from it so key difference here is that over time as you begin to earn more and more interest on the cash value of your permanent life insurance policy the cost becomes less and less and less over time as opposed to the opposite which term is very inexpensive when you're young but can be very expensive when you get older there is two two things that I'll tell you to kind of prove what is unknown about this number one infinite banking concept it's called infinite because a in part because life insurance can be designed an infinite number of ways and unfortunately the life insurance industry in my opinion has done a poor job of educating the consumer about the fact that there are tremendous living benefits associated with this the second thing I'll say to prove the value of the cash benefits inside of a life insurance policy is you don't need to look much further than the amount of money that these major banks have in this particular strategy or product and folks that's in billions of dollars so again just ask yourself the question what do they know that you don't why on earth would Bank of America have upwards of 18 billion dollars stored in the cash value of permanent life insurance Wow if it was not a valuable tool to use where did you get this this is right out of Nelson's books oh and and the other book that we use for a lot of our information is Pirates of Manhattan which is written by Barry Dyke a great book which explains how the banks have stacked a lot of the rules against us so if you don't mind I'd like to take a slightly closer look at exactly what you're explaining here okay so we've got this IBC which we now know means dividend-paying life insurance and it's starting to become more and more attractive as you explain it so this is a whole life policy with Mutual companies huh yeah so first first thing again let's get back to this idea that you're a saver and you're also a consumer so the idea is that if the bank just controls the money where could I save money that wouldn't be in the control of a bank that I could gain you that I could then use those dollars to borrow and buy the things that I want and the answer from Nelson's perspective of the infinite banking concept is a whole life insurance policy and it's reverse engineered for high cash value now the key here is it needs to be done with a mutual company I'm not go into too much detail about this if you need me to help you with that or to talk with your professional about that I'd be happy to but the key is a mutual life insurance company is kind of like a credit union in that you're the owner and so for a lot of reasons there's a huge value financially and from a safety perspective using a mutual company the second thing is we over fund the cash value so the idea here is that we are going to minimize the insurance benefits and maximize the cash value and then those cash values are going to earn interest and dividends so here's what you're asking yourself if I have to be a saver and I know what the bank's giving me to save do I think there's more benefits to save inside of a whole life insurance policy that's over funded then I get in putting my money in a bank and I can answer that question by saying over time I certainly believe so because not only does it earn interest but it receives dividends it also accumulates this money on a tax favorable basis what that means is that it's tax deferred so every year that it grows unlike your CD or your savings account you do not have to pay tax on the growth assuming it's built correctly I want to say that again because if it's policy can is not built right some of these benefits are not there so not only does it accumulate tax deferred but if it's built correctly you can actually reinvest your profits access your money and use the money without income tax I'll say that again if it's built correctly and you use it correctly you can utilize the money that you build inside of these policies without income tax so again let's think about that I'm a saver I get interest dividends and tax benefits and I compare that to the benefits that I get in the CD savings account type vehicles that a bank provides now not unlike any of our other classes where we're specifically emphasizing or highlighting a topic we've designed this into a seven step roadmap to help you better understand exactly what to expect through this process so step one is to understand the pros and cons of the banking process which we've discussed step two is to establish and evaluate your long term goals so that you can reverse-engineer those into your plan basing all of your decisions and abilities around your cash flow and that's done through your cash flow cruncher spreadsheet which we referenced earlier the third step is to then contact your trusted insurance professional the fourth step of this roadmap and hopefully you're writing these down is to design your plan then purchase your whole life policy the fifth step is to consistently fund the premiums of that policy which is a five to seven year funding term typically however if it's working well for you why would you ever want to stop would be my question now keep in mind that consistency and discipline are part of the keys to your success through this process which is why if you're not a cashflow maximization accelerated debt elimination student where you've subscribed to a two year coaching membership through VIP the one and only reason that that should be the case is because you are disqualified by VIP otherwise make sure you're a member because we will help you with that discipline number six exploit the banking opportunities which we're going to talk about and finally overcome human nature we're also going to talk about that as well so we've already covered number one and number two we then want you to contact your trusted insurance professional and there are a few must ask questions I would recommend that you either pause and write these down or rewind this and watch it again because the bottom line is we don't have enough time to sit and pause too long on these questions but a few questions that eric has recommended that you ask your trusted professional is how long have you been in business that's an important question to know second what is the name of the insurance company that you would be using third how soon can you borrow the cash value and what percentage would be available to you fourth what is the dividend credit history five how flexible are your premiums and if you change your premium what underwriting etc must you go through and six is a direct or indirect recognition and how does that affect you write these questions down when you have some extra time and just make sure that you approach your trusted professional asking for some of the answers to these going back to step four you then need to design and purchase your policy and then consistently fund the premiums let's go through the timeline just so the listener better understands exactly how this process unfolds Eric because not being experienced with this myself I would certainly wonder what should I expect if I were to approach you and decide to move forward with the policy what's step one yeah well you know here's a couple things I guess that are worth mentioning this is a concept that can seem very complex so we really want to work hard to try to simplify the concept and if you believe that you can profit like a bank and you believe that you have the personal discipline which we'll go over sooner or later and when I show you the case study in a minute you'll understand why the dividend-paying whole life insurance policy is the vehicle that's optimal for creating your own banking system I want you to be aware of what it takes to to achieve or to purchase a policy number one you want to work with somebody or discuss the options of how to create and design a policy as I said this needs to be something that is built specifically with high cash values minimal insurance amounts and overfunded the second thing is you'll fill out an application which is not unlike most applications you've filled out in your life just a few pieces of information that you need to provide and then the ball gets rolling the third is underwriting and as you might have mentioned as you might have wondered about or thought previously if it's a life insurance policy do I have to go through underwriting and take a physical and the answer is yes now Nelson has a whole chapter in his book about what happens if you're not insurable so if you have health issues but you'd still like to do this there are a lot of options which your insurance professional or I could explain to you number four the insurance company based on that health is going to give you an offer which you can then accept or decline if you choose to accept it you need to pay an issue and the policy will be issued so let's get back to this idea of creating and designing your plan again we touched on this a little bit earlier but the idea here is the least amount of money for the largest death benefit is typically how people buy life insurance and again that's term right you've heard the ads on TV that for 12 cents a month you can buy 40 million dollars of life insurance if you're 40 that's not the idea here this is how to solve the banking equation in your life so in fact what we're going to do is we're going to do the opposite technique which is specially design a policy to fund the least amount of death benefit to accumulate the largest cash value and the beauty here is that the IRS tells us exactly how we do this if we need to maximize the tax benefits of this policy not only does that help make it easy but it also tells you the importance of working with someone who understands insurance to make sure that this is done correctly okay so once that's done that we basically can use that policy to go out and exploit the banking opportunities right that's correct again you need to buy things in your life so exploiting the banking opportunities is asking yourself the question what do we buy in our lives what are we purchasing that we might be able to get those dollars back to our family as opposed to transferring them to the bank so once we do we're able to start eliminating the need for the dependency on the banks that's right your your number one idea is to gradually eliminate the need for dependency on banks to recapture some of that interest to is create a pool of money to give you the ability to control 100% of your needs beside the financial part being at the mercy of the bank's decision-making process can sometimes cause problems to some of the things that you want to do financially recapturing principal and interest there's the ability to recapture some of the principal and interest that you previously paid to banks and other institutions and then again we've touched on this begin to profit and avoid taxes being paid on those profits again assuming you've built the policy correctly this too is a simple business based on transactions the process doesn't change whether you use a bank or you use your own infinite banking concept family bank the only thing that changes is the way that you choose to implement the process and that is what we call creating the Bank of you so let's give this idea here that financing why would I want to why would I want to solve the banking equation in my life and we've talked about this but because you are going to do two things if you use a bank one you're either going to pay someone else interest to borrow money or two you're going to put your money in an institution where you're passing up interest that you could earn elsewhere and this is a key concept this along with the volume of interest being the main issue you get those two things and you're on your way to solving the banking equation in your life because most of the world from a financial perspective focuses their energy on saving five percent and how to create interest on those savings while taxes interest and expenses are eroding sixty percent of their life and we want you to understand that there's tremendous opportunity in that sixty percent so let's look at this in a more fundamental example when we talk about an insurance policy the idea here is you have to save so saving an insurance policy save consistently just like you have to do in any other part of your life and the insurance policy has attached to it three benefits the insurance benefit which is the death benefit which we know how that works when you die your heirs get a lump sum of money but the two other places that you have our cash value and a loan department the cash value is where you save your money and where you hope to get better benefits than you receive in a bank interest dividends and tax benefits the loan department is where you get money when you need to access it the insurance company will lend you money and collateralize your cash value so if you have a hundred thousand dollars built up in the cash value of your life insurance policy you can borrow up to a hundred thousand dollars or maybe just short of that from the loan department from the insurance company here's what's really important about this and why using a life insurance policy provides a unique benefit as opposed to you might be saying well I could just borrow money from my cash in the checking account but again you're looking for interest credit dividends and tax benefits as incentive for saving and then you're looking for benefits when you borrow when you borrow from the insurance company your cash value continues to grow and you pay back the loan to the insurance company so let's look at how this works this is one of the places where if you're researching this or you're working with somebody you need to make sure there's integrity about this okay you need to make sure that they teach you how this really works and I'm going to give you an example from a particular company this is a hypothetical example but I want you to understand the general concept of this okay what this particular example shows is a person who has elected to save fifteen thousand dollars a year okay so we get back to that you have to save somewhere you've got to work with your budget figure out how much you can save save that consistently this is obviously where having discipline having help with that discipline may be a big positive for you and and designing that budget having that consistent amount that you feel good putting in in this case this person selected $15,000 okay it's an annual contribution to this policy correct that's the premium that's the premium we call it the premium okay now what is that about $1,250 a month you gals yep okay so this person has a pretty good amount of positive cash flow and wants to put this money in for as long as they can but what we want to show you here is let's look at buying a car and let's explore the three options okay you could buy a car with cash we know how that works you're never going to earn much on your money and you're not going to owe anybody any interest very self-explanatory over a lifetime you'll lose thousands of dollars of interest potentially by not earning on your money you could also go to the banks and finance it which would cost you thousands of dollars of interest presumably paying that loan back so hold on let me just see what I'm looking at here we've got a net cash surrender value is this the cash value that's how much you can borrow against every year that's correct okay so this individual hypothetically has contributed approximately $15,000 in year one of which approximately only $9,700 is available or $9,800 is available that's how much you can borrow against that's correct and then right there to the right you see the death benefit that is associated with this policy again that that is a minimum death benefit determined by the IRS to get these benefits so if this person passed away their family would get those figures on the right hand side that death benefit paid to their to their loved what's jumping out at me here Eric is that after five years hypothetically if this individual had contributed seventy five thousand dollars approximately that same amount would be available to them that's right and this is where we talked a little bit about how permanent life insurance can seem more expensive up front but then it starts to cover itself so this is why it's a five to seven year funding term as we talked about earlier in the conversation that's right so if you think about term insurance you pay that out every year you're not going to get anything back if you look in the sixth year and these results are are based on an illustration so I want to be clear that this is not a guarantee that anybody gets this exact result but in this particular example you have you would put in seventy five thousand and in the sixth year you'd already have more than you put in so what you're telling me here is that after seventy five thousand dollars being contributed in just five years twenty years later this person would hypothetically have more than twice that available to them that's correct now dividends are based on the profitability of the company and so they could be more or less than what you're seeing here but again the idea is is that more incentive to save in a vehicle like this versus what you're getting at the bank and remember that accumulation if this policy is built correctly which this particular one is that would happen with no tax being paid every year and you would be able to withdraw that money as long as it's done correctly without income tax okay so what's a possibility number two none so the possibility number two is let's look at this from a banking perspective let's just say this person in the fifth year wanted to borrow $50,000 and was going to decide to pay themselves back at 6% now remember the insurance company collateralize –is your caste this part can seem complex but it's really not the insurance company will give you the loan for $50,000 and your money is going to grow largely like you never touched it then the insurance company is going to charge you a rate of interest to borrow your money but think about this the idea here is not to pay the least amount of interest possible the idea here is if you're thinking about this in terms of your own bank and paying yourself would you want to pay yourself the least amount of interest or the most amount of interest and so for this particular individual they've decided that they're going to pay their loan back at for five years at 6% and I'm going to show you how this all unfolds okay okay by borrowing that money they've paid themselves back and you can see right here in this column they've paid themselves back thirty-eight thousand they borrow 50 pay themselves back eleven thousand five ninety nine per year until it pays off just before the end of the fifth year the second column that you see here this is how much interest they paid the insurance company so you might be thinking this is where you might be thinking well why would I want to do that because I've just paid the insurance company interest and if I put this money in my savings account I would not pay anybody any interest and you would be right to this point you've paid interest to borrow your money but remember what I said your money continues to grow as all you didn't touch it right that's right your money would continue to grow and so you can see here on these cast surrender values that although you paid six thousand two hundred and seventy four dollars of interest to the insurance company you were credited thirteen thousand six hundred and sixty eight dollars through the interest and the dividends on this policy over that same time frame this my friends is the unique benefits that it's built into a life insurance policy I don't know of anything else that you could do any other place you could put your money where you could borrow put in 75 borrow 50 buy a car and over that time for you would end up positive cash of six thousand three hundred and ninety-four dollars so this is a great example then of how you could use the infinite banking policy to exploit the banks but this doesn't even touch on the possibility of income-producing asset acquisition through the infinite banking policy so let's say just hypothetically somebody wanted to use the $50,000 to put twenty five thousand dollars down on a real estate property and use the other twenty five thousand to fix the place up and then it's renting and cash flowing at five hundred dollars per month let's say now all of a sudden that momentum continues to grow and the ability to repay that the vehicle of this particular debt weapon is through the revenue of the of the rent right so this is a great opportunity for people who have a variety of investment goals to reach those goals on an accelerated basis through the use of this specific debt weapon right yeah there you're not number one you're not restricted about what to use this money for I think that's very important number to remember that banking example what's important with this process what's the most important thing with that middle player the bank must have the loans paid back so again the idea here is you've got to pay this loan back if you want it to look like that this is by the way where most people fail this is where you must uncut overcome step number seven which is the elements of human nature this is where the most illusory marketing can come from this is where all the problems happen so two things that are important here number one the loan must be paid back and number two if you are paying yourself back would you rather pay yourself back over five years seven years ten years would you rather pay yourself back at six percent eight percent and this is where having trusted advisors who really understand how to help you manage your cash flow well I think is a very important part of the plan so whether you already have that in your life or you need to put that in play if you don't have the discipline if you can overcome the human eight nature then this concept will fall apart just like anything else that you put in play in your financial life and if you want to use it for real estate and you want to use it for investing in widgets that's entirely up to you the key is do it with something that you can pay back no don't put this don't I would HIGHLY advise against don't take this money and go buy a Google IPO that's not how this concept is designed and again if you get back to that example that I showed you what would that policy look like potentially if that person bought five cars what would that policy look back like if they finance their child's education what would that look like if they bought 15 properties and paid it back one property what if they did nothing all those are options they're all dependent upon how you treat this this entity and how you really want it to perform I want to say here and I know we're you know we're pressed on time but I want to say this is what I alluded to earlier which is why a lot of you won't be able to do this you may not be positive cash flow you may not have the discipline to save consistently or you may not have the discipline to pay yourselves back and this is not a commentary on retirement planning this is a commentary on if you're interested in reversing or solving the banking equation in your life I don't think you can do it with just one of these three you have to be able to understand banking you have to be able to understand how to use life insurance correctly and you have to be able to understand how to get over your human elements we're gonna talk quickly about these things I think these are a lot of fun I talk about these with my wife I talk about these with my clients but let's talk about five nature parts of human nature number one is Parkinson's law okay Parkinson was a human behaviorist and he studied what's called the time envelope of money and the way it goes is if you get and some of you may have teenagers and you may really understand this you give someone a job and you give them three days to do the job they're gonna finish that job in three days give 10 days for the same job and they're gonna fit they're going to take all 10 days to finish it and and that manifests itself with your money and it does so with expenses rising to equal income a luxury once enjoyed becomes a necessity look at the phone there I mean all of us who thought you'd ever be spending $100 a month on cellphone bills not when you have that rotary phone but now no one could imagine life without it it cars without air-conditioning I mean there's a lot of these things if you cannot lick this if you can't avoid expenses always rising the equal income not only do I not think you'll get ahead financially but I certainly don't think you're a good candidate for the infinite banking concept to Willy Sutton's law if any of you listen to Peter boils in the morning he talks about Willy Sutton quite a bit Willy Sutton was a bank robber and he always got caught and as the story goes the journalist asked Willy why'd he keep robbing banks and his answer was because that's where the money is and so the idea here is wherever wealth is accumulated someone will try to steal it there's two key components here number one if you can avoid losing taxes on your money then you're increasing your chances of creating positive momentum taxes are a major headwind and if you can avoid or minimize the impact to taxes that's extremely important and the second thing here is you better not steal from yourself you better pay yourself back when you borrow you better understand that if loans don't perform your bet and you can't do that then there's no reason to be in the banking business the golden rule again these are right out of Nelson's book pay taxes on the seed or the harvest would you rather pay taxes today and avoid tax on your profits or would you rather avoid taxes today and pay tax on all your profits this is a major difference between where most of you save for retirement and 401ks and IRAs so this is a little bit different and if you look at why this is potentially important again this is not a substitute for those vehicles but it certainly is a compelling reason to have some tax diversification in your life if you take a dollar and you double that dollar every day for twenty day or every year for 20 years that dollar would be worth a million forty eight if you tax it at seventeen percent that's what the figure looks like and at twenty seven even more compelling so the need to avoid taxes or minimize taxes as much as possible on your profits is certainly compelling one if you're listening today if you've made it this far if you're willing to go and try to solve these areas in your life and take further steps you've already overcome this one but this is called the arrival syndrome there are probably things about banks you that you don't understand there are probably things about insurance companies that you're not aware of and if you don't have an open mind and you're not willing to look at things differently than then again I think you're you're doomed to failure and you're certainly not a good candidate for the infinite banking you're a superhero dum-dum yeah that's a lot what you want to be that's right that's not that you got a cool mask and a cool cape so you might feel good about yourself so yeah you've heard Malcolm Forbes the devas people I know are those who know it all so we really want to have an open mind and the last one which again I think is really important with infinite banking in general is that it's not always about where you can get the best rate of return it's not always about what your annual percentage rate is it's about using your money and using it to redirect or or recapture interest that you've potentially lost to other institutions and that's what banks do and that's what you need to be willing to do if you believe that you want to solve the banking equation and use infinite banking in your life and again it's if we think about what that does it's about eliminating payments of interest to others paying back the same rate of interest to something that you own in control and minimizing taxation to create a tailwind for wealth accumulation so at this particular point of the of the discussion I like to insert or include a segment called off-the-cuff where I just throw some questions and Eric that you may be wondering and he's going to do its best to give you an answer just keep in mind that these answers can change over time it really does depend on you your individual circumstances which is why we include that free consultation not only does VIP include a personal implementation coaching session at no charge but we're going to ask Eric and his team at the paradigm group to do the same for you so that you can get as much information as possible in order to make the right decision for your future so the first question that I would like to ask you Eric is how much money do I need to pull the trigger on an IBC policy and is there a policy that's too big or too small I'll answer the second one first I don't think there's a policy that's too big or too small you can't put in a hundred dollars a month and expect to buy a Ferrari out of the thing so there's a relativity there and I put in a hundred dollars a month yeah absolutely we have people who put in less so yeah there's no limit on that I think the bigger question is how much money do I need to pull the trigger you need to be able to analyze your positive cash flow to be able to come up with that number so it's more product to cash flow than it is a minimum number I don't know if you guys are noticing the pattern of cash flow management that continually comes back into this discussion but if you have not involved yourself with a discussion with VIP yet about your management plan of your cash flow then I would highly encourage that to become your first step next our major insurance companies selling this and what do they say about this concept you know that's different from different insurance companies some really supported some I think you know it may be an accounting nightmare for them a little bit but some companies are totally dedicated to it so that really that really runs the gamut they some say really positive things I don't think anybody would say negative I think if there is a concern from the insurance company it's that the person is not going to have the discipline to pay it back and that it won't perform the way they wanted it to because they stole from themselves okay so what what circumstances would lead a smart person to buy one of these policies well I mean here's the thing you can use life insurance as a way to create retirement benefits and a lot of people do that but specifically to the infinite banking concept I think if you have a desire to solve the banking equation in your life you understand why it can be profitable and you're committed to overcoming your human elements then it's worth looking at it so exactly what happens if I'm unable to keep up with my payments or I'm unable to pay it back on time the word exactly is tough because it depends on how long you've done it and where you are in your policy and so forth but there's a there's a pretty significant amount of flex to these things to be able to accommodate changes in your lifestyle and changes that come up we know one thing and that is nothing ever happens exactly like we planned it and so there is I'm not going to say there's no consequences but if you understand it correctly you should be able to minimize any negative consequences that come up by life-changing so is that something that I would work with my my trusted professional on if that need happens whether they're exposed to infinite banking as a concept in general or just a life insurance expert if they understand life insurance they should understand how flexible it is and what you might want to be aware of in terms of flexibility are the rules able to change well you know I'll never say never but this when you when you buy a life insurance policy there's a contract nature to it so precedent has been that they don't change and that if there are changes it would be on new policies not old ones so I think you probabilities are pretty good that they want can I own more than one policy absolutely Nelson and I have never asked him personally this question but I believe he's owned upwards of 40 or 50 policies at any given time so how does annual growth work and what is the rate based upon so every company has what they call their guaranteed interest rate which is an internal rate that they guarantee on your policy I'm not going to go into the numbers because they're different for different companies that is based on how the insurance company wants to attract people to their company and but most of the growth comes from the dividend which is a product of how profitable the company is and then they pay a portion of that profits back the process of the dividend when you learn more about it is one of the key components it's one of the reasons why the tax benefits can be so great so what point if ever does it make sense to pay up my policy with equity from my home I would say never now there are some people who probably differ but if you're my client you're not taking equity out of your home to fund a life insurance policy if you're a VIP student the same would be true so what are the most common reasons that this concept would fail I'd say twofold number one is not adequately understanding it upfront which could be either your lack of desire to know enough or it could be you know even in some cases deceptive marketing techniques and then two is the inability to discipline yourself from a cash flow standpoint over time so please explain for me if you could the Comdex rating and is that something that I need to be considering well I mean I think if you have a good agent representing you probably don't need to consider it because it should be something they're doing on your behalf but essentially it's a ranking of the quality of insurance companies I wouldn't say that a high Comdex means that it's a perfect policy for infinite banking and I also wouldn't say that a lower concept Kombat's means that it's a company that you should shy away from because there are a lot of elements to it so that's why probably something that you should make sure your insurance professional can help you with so how does an agent you know let's face it a salesperson of these types of policies get paid how is it that you're paid if I buy a policy from you or the paradigm group and isn't that money that I could just say yeah that's a ton you know that's the question that all salespeople need to answer of course I think of myself much more as an advisor and you need to be the one who makes the decision if this is right for you you need to just look at things for the way they are that being said typically insurance agents are going to be paid a commission and you know I think the savings isn't that money I could save I mean to me you're looking for benefits and someone's going to get paid no matter where you put your money in and if you put your money into the bank the bank's going to get those profits and if you put your money into insurance company the agents and the insurance companies are going to make money so that everybody there's going to be profits somewhere the idea is after profits for everybody else are you getting better benefits and that's where I think this policy or this idea has a lot of strength because again we're not trying to compare this to a stock we're not trying to compare this to real estate we're trying to compare this to where you can solve the banking equation in your so how do the insurance companies make their money the reality is this every financial product every financial tool the institution selling you that product is trying to convince you to give up your money for a certain period of time they want control of that money as well and so at at the end of the day it's about having the ability to invest your money with their money in what's called a pooled investment and so they've done that for a hundred and fifty years and they know how to do it very well and fortunately they know how to do that well enough at least they have in the past to be able to make money for themselves and also pass through some pretty significant benefits to you so they're not just investing my money to earn enough to pay me and the other policyholders you know that you might be able to say that they are I think really all investments come down mean look you buy a stock you're lending your money to the to the company in exchange for some ownership you buy a bond and you're lending your money through a dead instrument you know you buy a house and you're you know you're lending money to the equity and sitting it in the home or your lender or you're using a banks money so no matter where you go there's some element of that it's it's impossible to get around I think the key is for any investor is look at your options what are your alternatives and where do you think you're getting the most bang for your buck and again if we compare this to a benek I think that the savings benefits the consuming benefits and the profitability benefits if used correctly built correctly and managed correctly can be pretty compelling alright well I really appreciate all the time you've taken with me on my behalf and the listeners as well do you have any final things that you'd like to say to the person listening here today yeah I mean first of all thank you very much for taking some time I know this can be a little bit long and confusing the work is not done you really need to continue the due diligence that you're doing now so you can if number one you choose that you this is something you want and number two you really believe that this is something that you can do the right way you know you've got some work to do to make sure that this gets done right in your life if you'd like to have a free consultation from us we're certainly willing to do that but if you also if you have a professional that you're already working with and you'd like us to talk to them to help you make sure you get this right that's one of the value adds it will allow you know allow you to do based on this class you know it really is about banking personal discipline and and using the right vehicle so I never want that to be to be lost and then lastly what again you set this up from but it's really important whether it be investing legal or tax advice make sure you go to the full extent to be sure that what you're doing not only is built right but that you use it right over time and I think Matt's going to help cover some of those steps if that's something you need from us how you can go about contacting us alright great so a little bit about VIP financial education to refresh your memory first and foremost we were founded in 2002 and built by a team of 44 experts we became national leaders on cash flow debt and credit and we provide all of our online and on-site classes for free in order to give you that fundamental foundation of Education needed to make the right decisions to reach your long-term goals more quickly than you may otherwise implementation and accountability or how we make our money so if the coaching services that we sell are of value and the return on that investment makes sense then we'll suggest you before it otherwise we do disqualify about four out of ten people that we speak with based on our coaching that we provide we do have a perfect reputation with guaranteed results which is why we're so strict about who we allow into our program that's not designed to offend or insult you if you are disqualified but rather to protect you we have countless testimonials from people who are achieving extraordinary results some of which you can see at about VIP financial education com we've provided our training to many companies over the years which include NASA Kerry Remax your castle the paradigm group which was featured here today several nonprofits including the largest in the United States the Society for financial wellness Metro brokers the police department the list goes on and on and on and as you can see here here's a test from the chief of police Jim may when I first saw this I thought holy smokes it was very informative and a great process we love having the classes at the station and we are really making great progress with our coach and can't wait until the next class that's from Jim May also you can see we have an A+ rating with the Better Business Bureau you can even search NASA debt free class and see that we've provided this to both Johnson and Kennedy Space Center's here's a testimonial from the director I am the program director that has been offering the VIP education to the employees of NASA we have received wonderful feedback and plan to increase the availability of the curriculum in one word awesome I would strongly recommend this information to anyone and I certainly recommend and encourage you to share these classes with the people you care about because it is going to require each and every person in this country one household at a time to choose to do something better with their own individual household and personal economic circumstances to change the social economics of this country so what do you do now in order to take the next step and implement what you're learning the first is to complete the feedback form that will pop up at the end of this class so when the class ends here in the next minute or two you will see a feedback form that will appear on your screen please complete that which will qualify you for the second part which is a consultation it's totally free you will also receive an additional free coaching session with VIP so even if you've already had a free coaching session it will be time for you to get another one so you'll complete your cash flow cruncher spreadsheet which we showed you when you schedule your free coaching session with us you will then be sent a confirmation email with that spreadsheet attached the second step is to design your short-term plan by reverse engineering your long term goals and we're going to cover that with you and give you the guidance you need the bottom line is the process regardless of how complicated it may or may not seem can be easy when it's broken into small simple steps and it will also never require you to disclose confidential financial information when you're taking advantage of these free gifts here's a look at that cash flow cruncher spreadsheet again the feedback form is all we're looking for so do please complete that form now you'll receive the free no sales no pressure counseling session from both Eric and his team at the paradigm group as well as another free session from VIP you'll also be qualified for a free 3d affiliate referral partnership with VIP where you can earn up to six figures per year to help people understand this information and just simply share the free classes that we provide you can be paid significantly for that as a token of our appreciation you'll also be sent other invitations to all of our free classes so you're now qualified to attend all of our free classes and those invitations are sent by email so I strongly encourage you to take advantage of all of those this is your chance to determine if and how the infinite banking concept can improve your life if you'd like to expedite your process you can always call us at eight six six nine six nine two seven three eight otherwise please complete the feedback form and we'll be in touch with you shortly we really appreciate your time and thank you very much for allowing us to be your friends in financial know-how and this is to your continued success thank you and make it a great day

31 Comments

  • Reply Tim Kihiko July 26, 2019 at 3:24 pm

    In simple terms it's like you buy everything cash only that you have chance to get dividends!

  • Reply KT S July 26, 2019 at 3:24 pm

    I am 74 years old, would this benefit me?

  • Reply Magic DeVeil Dolby[HD]Sound July 26, 2019 at 3:24 pm

    Thanks for the Video !!!!

  • Reply Dee Balch July 26, 2019 at 3:24 pm

    Great video. I was sold a whole life policy over 12 years ago and surrendered after 4-5 years after listening to Suze Orman and bought a term policy instead. After watching this, I regret cancelling the whole life policy but I didn’t really understand how the policy worked then. I am looking at the options to convert some of the term to permanent now.

  • Reply Singleness of Purpose July 26, 2019 at 3:24 pm

    Still confuse on the part between 1:03:30 to 1:04:00 How is the $ 6,274 in interest benefiting me? Is this $ 6,274 interest money helping me add cash value thus increase interest to myself even though is going to the insurance. or is it all literally going to myself?

  • Reply zmk666666 July 26, 2019 at 3:24 pm

    You literally could have summed up all your repetitive information in 10-15 minutes!

  • Reply matt S July 26, 2019 at 3:24 pm

    Read "Becoming Your Own Banker" by Nelson Nash. I read it in 4 hours. It explains everything very well.

  • Reply Average Consumer July 26, 2019 at 3:24 pm

    Dude I can wait to try to do this
    I learn with you guys how to manage my money and no buy more liabilities until I can afford them, your help with how to bank and how to follow my spends (Mint), help me every single day. Look forward to having a session with you guys. I am currently working on getting my 800 USD (500 cash flow + 300 VIP membership) cash flow and 750 credit score.

  • Reply Janette Valenzuela July 26, 2019 at 3:24 pm

    What about an IUL policy? That’s what I have.

  • Reply Keyonn July 26, 2019 at 3:24 pm

    Glad there's more awareness of this strategy. I've just recently acquired a policy from a very large insurance company for this purpose. Comment if you'd like me to connect you to my advisor.

  • Reply King Neil July 26, 2019 at 3:24 pm

    No need for a policy

  • Reply Wes Akers July 26, 2019 at 3:24 pm

    Are there tax implications for taking that loan from your policy? For instance, does that count as taxable income I have to report?

  • Reply Jonathan Tayag July 26, 2019 at 3:24 pm

    Will that loan from insurance show up in my credit history?

  • Reply kundan singh July 26, 2019 at 3:24 pm

    Nice video. Thanks for sharing the knowledge.

  • Reply Dennis Mazzabufi July 26, 2019 at 3:24 pm

    ugh, I am kicking myself because ive read topics on this stuff years ago but never fully understood it or implemented any of it and wish I did.

  • Reply iamOAKland July 26, 2019 at 3:24 pm

    Whole life insurance not life insurance

  • Reply Pantzz gobbler July 26, 2019 at 3:24 pm

    I am 14 right now and am dying to implement these strategies the second I turn 18 thank you very easy to understand course.

  • Reply Kenyon Wilson July 26, 2019 at 3:24 pm

    This guy's answers at the end were so fukn smooth and spot on…👍👍👍

  • Reply Angelica Velez July 26, 2019 at 3:24 pm

    So it really doesn't have much to do with death benefits at all?

  • Reply Melissa Wright July 26, 2019 at 3:24 pm

    Alot of good info for free thank you.

  • Reply Helen Martinez July 26, 2019 at 3:24 pm

    INTERESTING!!!!

  • Reply Paula Shortridge July 26, 2019 at 3:24 pm

    Just started my policies and are already looking at ways this can be a 'debt weapon' for my family. Great training.

  • Reply Patrick Rodgers July 26, 2019 at 3:24 pm

    thanks for showing the truth behind this concept so many people are only giving half the story.

  • Reply Leo Zanna July 26, 2019 at 3:24 pm

    Do you use this sistem yourself?

  • Reply original cosmic being July 26, 2019 at 3:24 pm

    you're spot on, great works..lots of help and easily relate to what your saying..

  • Reply Pascal Chandonnet July 26, 2019 at 3:24 pm

    Thanks VIP.

  • Reply Vicki Hill July 26, 2019 at 3:24 pm

    How do i get the feedback form?

  • Reply William Sleiman July 26, 2019 at 3:24 pm

    Is this US citizens only?

  • Reply Santana Binacci July 26, 2019 at 3:24 pm

    so is the paycheck parking basically your check gets deposited into a bank account but you write a check to your policy and work it from there? Also I have read that Life insurers are struggling right now because of the low interest rate environment, so getting 6% used to be pretty easy and conservative, now speculators would kill for 6%, how are they generating 6% in this environment that is safe? this has never happened, I have looked into this and seems in the great depression Life Ins. came out fine, but this is a whole different world now and nothing is really safe anymore

  • Reply James W July 26, 2019 at 3:24 pm

    There's pros and cons to consider, also comparison to other options with taxes, write-offs, etc.

  • Reply Cesar Lopez July 26, 2019 at 3:24 pm

    Very good video my question will be can I use a line of credit to buy my policy then borrow the money from my policy to pay my line of credit back ?

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