In the 1980s, Nelson Nash came up with the idea of infinite banking. Known for his expertise in finance, Nash was also an adherent of the Austrian school of economics, which argues that factors other than supply and demand affect the value of goods.
Infinite Banking Basic
Infinite banking is a way to manage your own money by using a permanent life insurance policy as a “personal bank” by borrowing against the policy and collecting additional dividends.
As the Fed tries to stop soaring inflation, borrowing money is getting more complex and expensive. So, people may be attracted to the “infinite banking” concept, which lets them build up cash value in a well-structured whole life insurance policy.
1. Life-long life insurance with a fixed monthly cost where, with careful planning, the death benefit and the cash value both rise annually
2. The capacity to borrow money affordably, regardless of age, thanks to good gains that offset interest costs and are repaid by the (increasing) death benefit amount.
Advantages of Infinite Banking
– Reroutes the money you would have spent on interest to a third party to an entity you manage instead.
– Creates your own source of funding for personal and business expenditures.
– Develops a secure financial base by setting aside money in a fixed, guaranteed account.