YOUR MONEY is YOUR RESPONSIBILITY - no one else but YOU!
You work hard to EARN YOUR MONEY so why not work just as hard to LEARN HOW to keep it?
The following definitions from Wikipedia are crucial to understand WHY banks cause boom & bust cycles in our economy with fractional-reserve banking (COUNTERFEITING - loaning money a bank does not have) - YET - Life Insurance companies MUTUALLY owned by the policy holders (NOT stockholder companies) that are required to keep a FULL RESERVE actually minimize inflation in the economy!
Fractional-reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, but is required to hold reserves equal to only a fraction of its deposit liabilities. Reserves are held as currency in the bank, or as balances in the bank's accounts at the central bank.
Full-reserve banking (also known as 100% reserve banking) is a proposed alternative to fractional reserve banking in which banks would be required to keep the full amount of each depositor's funds in cash, ready for immediate withdrawal on demand. Funds deposited by customers in demand deposit accounts (such as checking accounts) would not be loaned out by the bank because it would be legally required to retain the full deposit to satisfy potential demand for payments.
The SOLUTION in this website is coming from one of the wisest men I know when it comes to money and the economy, Nelson Nash.
Below is the downloadable excerpt of the book "Becoming Your Own Banker (BYOB)" that was written by Nelson. This book is the platform for what you are going to learn below that is a grassroots method of avoiding FRACTIONAL-RESERVE BANKING. The short 90-page book should be a required course in high school & college! To purchase a copy of BYOB you can make a request on the PETITION page or call/text me at 904-254-6472 to purchase the book.
Before you go further on this page I would encourage you to watch 3 videos.
The first video is 5 Minutes with Nelson Nash.
The second video is a 1 hour lecture given by Nelson that provides an economic lesson that is NOT taught in many universities today!
The third video is presented by 2 Board of Directors of the Nelson Nash Institute, Carlos Lara & Robert Murphy - How to Weather the Coming Financial Storm!
Learn more about the impressive background of the Nelson Nash Institute Board of Directors by clicking HERE.
Some of the LARGEST BANKS in the USA have BILLIONS in CASH VALUE LIFE INSURANCE (CVLI) policies to use as operating budgets & working capital. The banks also use CVLI to HEDGEagainst the increasing costs of employee benefits. Click HERE to read the short article & see the actual number of BILLIONS in CVLI vs their fix assets! You cannot blame your broker, financial advisor or banker if YOU are not willing to understand HISTORY & HOW it affects your financial future & future generations!
If you thought 401(k), 403(b) & other tax-qualified plans were safe & provided growth you will want to watch the 3 Part Bloomberg series called The Truth Behind Hidden Fees in 401(k) Plans THINK about the following questions again: If the mainstream advice is doing such a great job then WHY do we have financial meltdowns throughout history – like 2001 & 2008?
Why didn't the financial mainstream advisors see the meltdowns of 2001 & 2008 coming and provide sound financial advice to their clients so they were protected from the meltdowns? Could it be they did not know so how could they give sound advice? Do you agree with Congress when they pass legislation to ALLOW OUR TAX DOLLARS TO BAILOUT banks & Wall Street (Example: General Motors & Goldman Sachs) when the executives mismanaged their organizations - like 2008? Do you feel that is needless & unnecessary TAXATION that we should pay for the incompetence of executives?
The following is an excerpt from an article written by Nelson Nash, IBC - What's it all About?, that will provide a paradigm shift in the way you THINK about your current financial strategy! "From my own perspective, money is the real common denominator in human action. The great Austrian economist, Ludwig von Mises, points out that the business cycle is caused by central banks. They inflate the money supply dramatically and people can’t tell the difference between “real money” and the “counterfeit money” (fiat money has no real basis). They feel that it is real wealth and so they do things that are totally irrational. This creates booms in the economy. In due course of time, reality rears its ugly head, and the bust follows.
This pattern has a long history, but it seems that every generation during the boom years feels that “yes, those things happened in the past – but, thistime it’s different!” This is nothing but hubris in its purest form. It is the “Arrival Syndrome” that I describe in my book, BECOMING YOUR OWN BANKER. It is the worst thing that can happen to the human mind!
Government debt all over the world is huge. Consumer debt in these nations is equally significant. Bankers have created a mind-set in people that “you don’t have to save money– just spend, spend, spend! We are going to take care of your financial needs.” A local Credit Union advertises “Get a Legacy Lifestyle Loan from us.” Translated: “If you don’t like your present lifestyle, then get a loan from us so you can live the way you want to today! Don’t worry about having to repay the loan.” We are bombarded with such stuff every day. If you listen to financial advertising very long then it becomes “hourly!”
Your local, commercial banks are the primary source of inflation. They lend money that doesn’t exist. If anyone else did that they would be put in jail! But, this chicanery has been going on so long that most everyone considers it normal.
In the video, Banking With Life, Dr. Paul Cleveland points out that people confuse money with wealth. Wealth is your productivity and things that you own. Money is just the medium of exchange that we use to acquire wealth. Creating a pool of money from which to buy wealth is a necessary function in an economy. This pool of money is known as banking! We could not live the way we do today without the concept of banking! It is sovereign! Some party in your life is going to be the banker whether you recognize it or not!
That party should be you! John Donne (1572-1631) gave us the thought, “No man is an island.” Therefore, this Infinite Banking Concept must involve other people in the form of a contractual relationship. The perfect financial instrument to accomplish this has been in existence for over 200 years. It is known as Dividend-paying Whole Life Insurance (preferably with a Mutual Company – one that is owned by the policy owners). Your medium of exchange must be warehoused somewhere! There are no exceptions! This is a place that cannot inflate the money supply. If you warehouse your money here, then you are notpart of the problem of inflation.
This Infinite Banking Concept has been taught through my book, Becoming Your Own Banker and the follow-up book, Building Your Warehouse ofWealth. Further explanation is provided by How Privatized Banking Really Works by Carlos Lara and Robert P. Murphy, PhD.
Through these books and seminars that are taught all over the USA and Canada, there are now thousands of people who will never have to take loans from an institution that inflates the money supply and creates “booms and busts.”
People have known for many years that an owner of a whole-life insurance policy could take a loan from the company’s pool of assets and collateralize the loan with a lien against the cash value. However, having been involved with the life insurance business for fifty years, it has been evident to me that the major emphasis of the industry has been to demonstrate “the need for death benefit” in one’s particular instance. The epitome of this thought was developed by Dr. Solomon S. Huebner (founder of the American College of Life Underwriters) in his concept of “human life value.” A sub-set might include, “Oh, by the way, this type of whole life insurance does build cash values, against which one might make a loan in case of an emergency.”
The uniqueness of the Infinite Banking Concept is demonstrated in Becoming Your Own Banker -- “your need of finance, during your lifetime is much greater than your need for death benefit.” Solve for this need through this type of whole life insurance and the need for death benefit is automatically solved. I challenge anyone to show where this fact has been demonstrated before the publishing of this book. If one fully grasps the implications of this concept, then the possibilities become limited only by the imagination. This is what the Infinite Banking Concept is all about!" SOURCE
Infinite Banking - Basic Concepts
1) The essence of the “Infinite Banking Concept” is to recover the interest that one normally pays to a banking institution through the use of dividend paying life insurance and then lending those funds to others so that the policy owner makes what a banking institution does. Funds may be lent to any party including your-self and earnings grow within the policy tax deferred. Thus you are both reducing your tax burden and capturing monies for yourself that a banking institution normally would receive.
2) A foundational principal of the concept is that anytime you can cut the payment of interest to others and direct that same market rate of interest to an entity you own and control, which are subject to minimal taxation then you will have improved your wealth generating potential significantly. (Insurance companies do pay taxes – it is just that dividends in an insurance policy are not taxed – we will talk about this later.)
3) A concept or principal that must be understood before we began is that we are not talking about investing here rather we are talking about financing. Financing is a process not a product. Financing involves both the creation of and maintenance of a pool of money and its use. However we will see that when a financing system is combined with an investment system the combination of the two will always out perform an investment system. When the system combines reduced tax liability with a financing engine and allows complete control over your investments there appears to be no system capable of generating wealth with as much consistency or speed. (Please see page 68 – “Becoming Your Own Banker”)
4) A second concept or principal we must all agree on is that you finance everything. You either finance by:
Paying interest to someone else – a bank, lender, etc
Or giving up interest you could have earned otherwise. (When you pay cash the interest the money could have earned is forfeited)
5) For these reasons when we are discussing investment alternatives we must not only weigh the return we will receive but we must also evaluate what we are forfeiting or giving up. This mind set will become more important as we evaluate the “Infinite Banking Concept”.
6) For all of the reasons mentioned above every person should be fully engaged in two businesses.
7) Of the two businesses mentioned above, banking appears to be the one that has the greatest potential for helping a person generate long term wealth.
8) If we look at the average American we will find that most Americans spend about $0.24 - $0.34 of every dollar on interest expense. (Home, Car, Boat, Credit Card, etc.) For example if you look at the purchase of a home, approximately 85 % of the monies paid during the first five years of your mortgage are interest payments.
9) Also looking at the average American we find that about $0.30 of every dollar is paid in taxes.
10) Summing these quantities we see that the Average American is paying from $0.54 to $0.64 of every dollar they earn on interest expense and taxes. If a legal, legitimate method could be developed to simply capture half of this loss the wealth creating ability of the average man would be significantly improved.
11) In short, if these two sources of revenue could be captured then you would be further along in generating wealth for yourself than if you made good investments in the market that were achieving high rates of return. (Source: "Infinite Banking - How it Works" download below)
CASH FLOW is the movement of money into or out of a business, project, or financial product.
WHERE you warehouse your money and HOW much control you have makes ALL the difference in your financial future!
Are you INVESTING or SAVING?
Would you agree?
INVESTING is money a person CAN afford to lose
SAVING is money a person CANNOT afford to lose
Here is the real dilemma - most people have their SAVINGS money in financial vehicles that are tied to the markets (RISK & NO GUARANTEES) such as 401-K plans or other tax-qualified plans that also have unknown future tax consequences not just for the person in the plan but also their heirs that could (more than likely will) create estate tax issues as well. When we have meltdowns like 2001 & 2008 tax-qualified programs were fleeced & businesses were over-leveraged & closed because they did not have capital!
Example for Individuals & Families: When 2008 happened most retirement money was in the stock market which is where the huge losses came. The stock market is the 3 areas - Credit Default Swaps, Collateralized Debt Obligations & Mortgaged Backed Securities – so WHY would anyone want their SAVING money in Wall Street???
We have the financial gurus say well DOLLAR COST AVERAGE - meaning buy more when the stock is low so you can recover when it goes back up BUT what happens if you don't have enough time in your life or what if it doesn't go up when you need the money?
When you lose money you NEVER recover & anyone that says different - LIES!
Example for businesses: the businesses was advised to borrow money to grow their business or by a large piece of equipment to get a tax deduction every year like a successful family farm or other business but when 2008 happened they struggled to stay in business & some closed.
You can have guaranteed growth by profiting from your own debt or being a bank for your children or grandchildren which will be passed on to them anyway – TAX-FREE – if using the strategy we teach!!!
Does your money have all of the benefits below?
By NOT having the benefits below will that have a negative or positive affect on your CASH FLOW & WEALTH?
Tax Deferred Use All Our Lives or The Life Of The Insured
Tax Free to Create Generational Wealth
Unlimited Investment Options
Liquidity, Use, and Control to solve your finance needs
Is compounding our money important to our financial future than taking losses in Wall Street? YES!!!
What we will share with you is how to keep the compounding working in your favor and PROFIT FROM YOUR DEBT instead of someone else!
What happens if you were to invest a penny into an investment that doubled every day?
Day 1: $.01 Day 2: $.02 Day 3: $.04 Day 4: $.08 Day 5: $.16 Day 6: $.32 Day 7: $.64 Day 8: $1.28 Day 9: $2.56 Day 10: $5.12 Day 11: $10.24 Day 12: $20.48 Day 13: $40.96 Day 14: $81.92 Day 15: $163.84 Day 16: $327.68 Day 17: $655.36 Day 18: $1,310.72 Day 19: $2,621.44 Day 20: $5,242.88 Day 21: $10,485.76 Day 22: $20,971.52 Day 23: $41,943.04 Day 24: $83,386.08 Day 25: $167,772.16 Day 26: $335,544.32 Day 27: $671,088.64 Day 28: $1,342,177.28 Day 29: $2,684,354.56 Day 30: $5,368,709.12 Day 31: $10,737,418.24
SO WE KNOW COMPOUNDING WORKS but do you understand the MONEY that is in your control & the MONEY that is out of your control & HOW it affects your compounding & financial future?
What SUCCESSFUL business practices JUST compounding in their operation?
Example: Does a car dealer buy her/his fleet of cars to sell and park them behind the building for 5 years hoping the value of the car will go up? NO – she/he knows the more cars she/he sells every year the more money she/he makes so as she/he makes more money she/he reinvests that money to buy more cars to sell!
We should be turning our inventory (money) just like the business owner is doing in our financial strategies as well!
One question I ask people to help better understand the concept we teach is & their current financial strategy - if you were to add up all the principle & interest that you have paid on loans such as cars, mortgages, etc. and/or the principle and interest lost when paying cash and then compare it to what you have saved or invested until now - which would be more more? Everybody always says what they have paid or lost in principle and interest - so you see it is not the INTEREST RATE that you are getting as a return on your investment BUT it is the VOLUME OF INTEREST you are paying to someone else or giving up when paying cash!
That is what the Infinite Banking Concept is all about. Building a system of policies to recapture what is being given to someone else or lost when paying cash.
Financial Resources & Videos for Individuals, Families & Businesses:
Truth Concept videos are presented by my colleague, Todd Langford. He will show you the cost of financing & WHY most financial plans will have less money in the future!
Nationally known CPA Ed Slott explains why Life Insurance is the missing piece in most financial plans!
To view Becoming Your Own Banker videos please go to the Click HERE.
Please visit Nelson's site at InfiniteBanking.org to purchase a copy of BYOB or the digital version OR contact me. I am confident you will be pleased to learn so much more as to WHY our goal is to reach as many people as we can to share this concept!
"What happened to the value of the $1" to understand HOW & WHY your financial future is doomed unless you change your PARADIGMS about MONEY!
"Infinite Banking – How it Works By Gary Vande Linde" as an engineer Gary needed to demonstrate that a particular piece of equipment or machinery or change in process would generate either increased revenues or decrease cost enough to pay for the modification in two years or less. Gary explains WHY & HOWInfinite Banking benefits personal & business strategies!
"HOW to control YOUR MONEY" & "Michigan & Jim Harbaugh compensation package" (download below) to understand HOW & WHY we structure policies a certain way!
"A Real Life Story of a Successful Dentist" that was provided by an accounting company that is a description of an actual dentist that used the concept I teach to redirect money that he was losing in the markets to improve his cash flow. This is JUST ONE OF MANY strategies that can be used for any business not just a dentist!
"How Privatized Banking Really Works" written by Carlos Lara & Robert Murphy to compliment Becoming Your Own Banker & provide more detail into the economic issues we face with our financial future plans! They are Board of Directors of the Nelson Nash Institute.
One last major point DO NOT mistake a Dividend Paying Whole Life for a Universal Life (UL), Variable Universal Life (VUL) or Equity Indexed Universal Life (EIUL) when an agent calls them a WHOLE LIFE POLICY because they do not perform AT ALL like a Dividend Paying Whole Life.
Nelson created the Nelson Nash Institute (NNI) to provide a solid education as to the Infinite Banking Concept (IBC). I have completed the course and I am certified as an IBC Practitioner to assist my clients how to apply the IBC to their financial future. Anyone is welcome to contact me with any questions or to implement the Infinite Banking Concept by completing the form below or you may call, text or email me.