Before we can discuss Privatized Banking, also known as the Infinite Banking Concept, it’s first important that you have an understanding of banking. Banking is a process that involves four essential functions to be successful–(1) a bank owner who understands the primary function of his bank is to (2) lend money to (3) a borrower, using the money from (4) a depositor. In most cases, we are the saver and the borrower. We put money in the bank and borrow it back out. The banker is the intermediary who holds and uses the saver’s money in exchange for a given rate of return.

Many people agree that they would like to have their own bank but few are willing and able to go through the arduous, lengthy and expensive process of establishing their own federally chartered brick and mortar bank. That’s where the Infinite Banking Concept (IBC) can help.  This concept was developed by R. Nelson Nash.  We encourage the prospective banker to contact us for further explanation and how to begin your self-study on the IBC.

Where can you find a vehicle that eliminates wealth transfers by allowing you free access and use of your money without the burden of taxes, penalties or market risk? Where can you find a vehicle that allows your money to grow tax-deferred, with the ability of being withdrawn tax-free, provides guaranteed rates of return, tax-free dividends, a level of asset protection, virtually unlimited contributions… and the cherry on top… a legacy that will pass income-tax free to your heirs?

Well the answer isn’t simply a product, but a process.  It’s about learning the proper swing BEFORE you worry about the type of golf clubs you buy!  For that, you’ll have to contact us directly!

Banking can be done with any of the financial vehicles above. After all, we’re simply borrowing from ourselves and paying ourselves back. In this case you have to look through the shell to get the nut, we have analyzed each financial vehicle and weighed the pros and cons of each.

Deposit accounts like savings and money market accounts are tax nightmares. You deposit post-tax dollars and the growth within your account gets taxed every year. Rates of return are historically some of the lowest offered so it’s very hard for your money to go to work for you. Your money is safe and liquid but does not grow tax-deferred and cannot come out tax-free like it would in a Privatized Banking System . In addition, you do not get the tax-free legacy that will protect your family and heirs for generations to come.

Mutual funds can get a nice external rate of return but all growth is subject to capital gains tax. This means that your effective rate of return is much lower. However, the money within a mutual fund is at risk based on the markets and companies that you are invested with and your funds are not guaranteed to grow. Selling and buying mutual funds costs money and can trigger short-term capital gains taxes. Depending on the state of the economy it may not be wise or advantageous to access your funds. Liquidity then becomes a problem, which is vital for fulfilling a banking role.

With a Privatized Banking System, there are no transaction fees and your funds are guaranteed to grow on a tax-deferred basis. Your system is not invested in the stock market, so you have a guarantee that your principle balance will never decrease. When it does come time to access your money, you can draw it out tax-free!  And once again, mutual funds do not offer additional legacy protections for your family and heirs.

IRA’s can be very beneficial, but IRA’s are meant for retirement and only retirement. There are specific rules that surround IRA’s and if you break those rules then you don’t get the tax benefits that they offer. For instance, there are adjusted gross income rules and limits on the amounts you can deposit each year. If you need to access your IRA funds before you hit the current retirement age, you will be assessed a 10% penalty fee plus you will taxed at your ordinary income tax rate.

Many people like self-directed IRA’s and use them for managing their investments. This brings up an issue called self-dealing. The owner of an IRA account is not allowed to handle the IRA funds or directly benefit from or be involved in any of the investments that are made within the IRA. If your IRA buys a home, you can’t rent it to your sister and you can’t fix the plumbing. Any involvement in that investment and it can destroy the IRA tax benefits. Therefore, in order to self-direct your IRA you will need a custodian to handle those transactions. These custodians charge annual fees and/or transaction fees that can erode the gains on your investments. So, we do not find IRA’s to be a satisfactory vehicle for banking.

Many people like the tax benefits offered, but let’s be clear that these plans are designed for one purpose alone and that’s retirement. Privatized Banking Systems can be used for anything. They are extremely flexible and the ways we can use them are infinite! We want to enhance our retirement, and our savings by utilizing our banking system for every day financing purposes. We want to finance and use our own cars, homes and business equipment. We want full access, use and control of these funds at any time without triggering transaction fees or penalties. We want to be able to deposit as much money as possible without limits and with no adjusted gross income limits. With Privatized Banking, even high income earners can get the same tax benefits of traditional retirement plus much more. They are not shut out from growing their assets tax-deferred while still being able  to withdraw them tax-free.

So, by looking through the shell we can see that when it comes to banking, a Privatized Banking System is far superior to any other vehicle available today. It meets the banking functions while providing additional benefits that are second to none. For maximum financial efficiency, this is the BEST choice.

The first step is to meet with one of our advisors so that we can assess your desires and goals.  We have a systematic process known as the Circle of Wealth that we use to effectively address each client’s needs.  Included in our client analysis is a program called “Retirement:  Ready or Not?  With this program, we can answer the four most important questions facing everyone about their future retirememt:   

1)What rate of return will your investments need to earn for you to enjoy your present lifestyle at retirement?
2)How much should you be saving?
3)How long will you have to work to enjoy your present lifestyle during retirement?
4)How much will you be able to spend and have your money last to your life expectancy? We can give you a snap shot of where you are today in relation to where you want to be in just a few minutes and answer every one of those questions for you.  

We deal with this question in our first one-on-one meeting when we discuss exactly how we are compensated.  But just so you are at ease, there are no application fees, nor do you ever directly pay us for your personal consultation, sample illustration generation, or personalized review with an ERG Agent. You simply have to fill out an application and take an in-home medical exam. There’s no stress and no obligation.

No. Unlike a self-directed IRA, or even a cash-out refinance of a home, you are not asked any questions about how you intend to use the funds.  You do not even have to disclose your repayment schedule as you are not even required pay the funds back. While commercial lenders may place restrictions on what they will and will not finance YOU, the banker, can decide on a case by case basis what is in YOUR best interest to finance. YOU decide how much risk you are willing to take. Clearly this puts you in a position of control and responsibility. But with much freedom and control comes much responsibility! Discipline is required  to be a successful privatized banker!

No. You are not required to make a down payment for accessing your money. Also, unlike custodial accounts for self-directed IRA’s, you  do not have any transaction fees. There are no fees whatsoever for taking money out, making premium deposits or repaying an outstanding loan.

The short answer is that you don’t have monthly payments, if you don’t want to make them.

Your local bank will expect principal and interest payments to begin 30 days after the loan is funded. However, as an infinite banker, you did not borrow from the local bank. YOU ARE THE BANKER! You can decide when the payments are due, how often they are due, the amount, and the interest rate. All the terms are entirely up to YOU. While you do have extreme flexibility, it is highly recommended you give yourself the same kind of structure the corner bank would. Be an HONEST BANKER from the beginning. We will teach you how.

We believe you should never mix investing and savings.  First and foremost, your money is not invested on Wall Street and not at the risk of market losses.  Your money is placed in an account under your management that provides competitive rates of return and compounding growth.  Their is so much more to speak about regarding the safety of your money in this system, but we’ll leave it at this for now–the youngest company we work with is 107 years old and has NEVER failed to pay a dividend.  That client payment of tax free dividends every year including during 2 World Wars, 8 major recessions, and the Great Depression.  Upon meeting with us and fully discussing this particular topic, we believe you will be convinced as we are of the safety of this system.
 

Not in the traditional “roll-over” sense for deferring taxes.  Through our educational process, you will learn why someone would NOT want to keep “kicking the can” of their future tax burden down the road.  If you are looking to maximize control of your tax future, you must fully understand the concept of paying tax on the seed, not the harvest.  We work side-by-side with our clients to develop the most effective strategy with relation to asset transfers from IRAs 401k, etc.  We want to always ensure that our clients are putting their money to its highest and best use.

You bet! That’s why it’s called the “Infinite” Banking Concept. The choices and options are truly infinite. Think about your personal needs, your family’s needs and your business needs. Are they not infinite? Welcome to the world of the Infinite Banker! Remember, we finance EVERYTHING we buy, regardless of whether we pay cash and give up our principal and interest or whether we borrow from an outside source that consumes both principal and interest. You now have the ability to recapture everything you are financing today. Think about the possibilities!