Be your own banker

Have you ever considered being your own bank. You could have your own ATM and you don't have to go see the loan officer and attempt to convince them to give you a loan. Well you can, first I would like to say that I am not the first to develop this concept or use it. Actually the person that commercially published the idea was R. Nelson Nash, his book is called Becoming Your Own Banker: Unlock the Infinite Banking Concept. I recently read the book myself and now I am trying to improve upon it. Before we get started I want to advise you that I am licensed to sell basic insurance policies but not licensed for any variable or investment products. For professional purposes value my advice for what you payed for it.
The personal banking concept is build off of a permanent life insurance policy. Most of the time when you make a large purchase you have to decide between giving up interest that you earn, or paying interest on money that you financed. This happens because you either have to take money out of savings to pay for the item or pay the bank interest for the financing. What if you were able to continue earning interest after purchasing something and then pay interest back to your self. What ends up happening is that over time you develop a large pool of money that has multiple advantages that can be provided to you.

1. You can finance larger and larger purchases as your cash value accounts. While enjoying tax deferred growth inside the vehicle. If you were earning interest in just a plain old savings account you would be required to pay taxes on the interest.
2. Pass on wealth tax free to your decedents. I am pretty confident that if you can pass directly to your heirs that is a plus for anyone.
3. Provide retirement income, this retirement income often times far exceed your original cost of this policy and keep some sort of death benefit intact.

I would also like to point out that these policies take a little while to get started. Permanent life insurance products can be likened to an airplane. When a 70 ton airplane takes off it requires a lot of fuel, but as the plane reaches its cruising altitude and speed it becomes much more efficient. Actually the plane continues to become more and more efficient because it is consuming fuel and becoming lighter. A life insurance policy is the same way, the longer it is in force the more efficient it will become. An important thing to take away from this is to not let the policy lapse, if you do you will have been purchasing expensive term insurance. If you are truly interested in this idea I would start by reading Becoming Your Own Banker.

As I implement this infinite banking plan I will keep you updated on how it works for me.