Have you ever thought about becoming your own banker?
Managing your personal finances can be strenuous at times, but it is the best way to know what your earnings and expenses are. It’s also the best way to keep an eye on your cash flow and your investments.
Infinite Banking is a new concept that helps you create your own banking system. It is a way of creating your financial safety net. It helps you save money as well as build upon this wealth for creating a secure future for yourself and next of kin.
In this guide, we will outline the benefits of becoming your own banker using the Infinite Banking concept:
The Benefits of Becoming Your Own Banker
As Infinite Banking grows as a popular concept, we are sure that more people will partake in it. Becoming your own banker is a trend that we feel will skyrocket within the next few years.
We suggest you familiarize yourself completely with the concept before moving on. We recommend you read this to have a simple understanding of how Infinite Banking works.
Now, here are the benefits of utilizing the Infinite Banking concept.
- A Safety Net
One of the biggest advantages of Infinite Banking is that it allows you to create your own safety net.
It’s always crucial to have your money stored in a safe place. We often diversify where we place our income, be it in the stock market, in real estate, or through other commodities such as gold and silver.
But we always will have a need for steady cash flow. This is why we keep money in banks in the first place.
But we want to make sure that our bank does serve as a great safety net. With Infinite Banking, you put your money into whole life insurance. This life insurance exists for the duration of your life and can be passed on to your next of kin. As you age, it can also be sold for cash if you need immediate financial assistance to afford end of life care.
With the Infinite Banking system, your savings can grow through dividends and are untaxed. You can also withdraw these savings at any time.
It is crucial to create and maintain a steady cash flow. You can borrow a loan from your cash flow and when you pay it back you are the one who recaptures the interest!
- Cash Flow and Liquidity
As we mentioned, being your own banker means that you can create and maintain cash flow. And cash is the best asset that can be liquidated.
Cash remains king. If you own a property that is worth a lot of money, you cannot always be sure that you can liquidate it when you need to. There could be a natural disaster or a recession that hinders you from liquidating your asset.
Cash is much easier to liquidate. Imagine if on your property you had not entirely paid the mortgage and you owed $80,000. You may decide to sell the property (or another property or similar asset) to pay off this debt. But if you are unable to easily liquidate your asset, then you are stuck with the debt.
If you have $80,000 in cash that you can liquidate at any time, you can easily cancel your debt. This is another great benefit of Infinite Banking.
- Financing and Loans
It is imperative that we manage our finances wisely. We need to make sure we have our finances set aside for our goals: for what we wish to purchase, for what we need to save up for, and for emergencies.
When we give out loans we want to make sure we get paid back. When we take out a loan, we need to be responsible for paying the loan back. Infinite Banking helps us achieve these goals.
For example, if you are loaning out part of your finances to your company, to your family, to your friends, or even to yourself—you can charge interest. You will earn the interest from when the loan is paid back.
As you are your own banker, you are in charge of deciding whom the loan can go out to. You can also take out money for a particular expense (such as for purchasing a house) and then when you pay yourself back, you can earn interest on it.
- Tax Advantages
One of the best benefits of using Infinite Banking is tax advantages. It is no secret that taxes do hinder wealth building. The point of Infinite Banking is to save money, add to your funds, and build wealth over your lifetime. This wealth is something you should always be able to depend on and possibly that your next of kin can depend on.
So what are the tax advantages that come with Infinite Banking? You can accumulate your cash tax-free (through Infinite Banking) and by taking out life insurance loans you can potentially avoid paying any further tax.
Life insurance loans cannot be taxed. And as you earn gains from your cash it is like earning interest without having to fulfill any tax obligations for it.
Sounds pretty good, doesn’t it?
As we have discussed in this article, Infinite Banking helps you create a safety net. A safety net includes money that you can always depend on in an emergency.
But we know that the value of money changes, and as a result, it is crucial that you continue to grow your money. With the flexibility of Infinite Banking, you can continually put money into your account. And as we discussed in the previous point, your gains are tax-free.
As you have the option of withdrawing money as a life insurance policy to avoid any further tax. And any loan you give out—or take yourself—can be charged with interest.
We urge you to give importance to growing your cash flow. Just as you may want to grow in your stock market portfolio or on the number of properties you have, it will serve you well if your funds continually grow.
Infinite Banking is the best method for growth.
You Can Bank on It
Now that you know the advantages of becoming your own banker, why not go ahead and start with Infinite Banking today?
And be sure to keep up to date with the latest news on our website. You’ll learn how to increase your wealth and improve your financial education.