Roughly 30 years ago, a very bright financial specialist by the name of R. Nelson Nash wrote a book called the “Infinite Banking Concept”. This book can truly help you improve your personal finances because at the core of it, Mr. Nash noted that people are paying out around 34 cents of each dollar they earn and pay taxes on for servicing various debts they have to run their homes and lives.
He also noted that most people only saved around 5 cent of each after-tax dollar. To Mr. Nash’s way of thinking this was creating a fairly bleak picture for most families. And, he set about to find a way to counter it.
His Infinite Banking Concept is really not all that complicated, but it required some specialized knowledge. The idea he had required some sort of financial instrument that the average person could acquire and then use as an investment device that would safely invest their savings at higher than normal rates of return.
But this was just half the story. He also wanted a way to use those funds for loans that could be used by the investor in lieu of creating new outside debt. In other words, by having one’s money work both as an investing mechanism and as a working source of funds to avoid borrowing, he would have created an infinite banking system…something of a personal bank.
He found the perfect way to do this in the insurance industry. By creating a whole life policy that was made less expensive by removing some of the life insurance benefits, and making the cash value feature more lucrative, one could create this system of infinite banking.
Additionally there was a bonus of having some favorable tax ramifications. Dividends could be paid back to the owner of the policy. And the policy owner was in complete control of where the cash value was invested, creating the pool of funds that would allow someone to discontinue borrowing 34 cents on every dollar they earned.
You should check out Mr. Nash’s Infinite Banking Concept and keep more of your money in your pocket!
For more details: www.thepersonalbanker.com
