Infinite Banking

vs.

Real Estate and Other Investments

Real estate and other investments can be a good piece of a diversified portfolio.  You can get some tax advantages and produce a cash flow.

1.  Are you in control of your equity?

Infinite Banking

You have full control of the equity in your policy.  If at any point in time you want to access the equity, you can with no questions asked except…how do you want us to send you the money?

If you use the right policy, you can access your money and have never even touched the equity.  The Insurance company gives you the money in the form of a policy loan, in the meanwhile your equity still grows.

A very unique feature of this kind of policy is that when you borrow your equity, it will continue growing as though you never touched a dime of it.  The equity stays in your policy and continues to receive its guaranteed return and any dividend you would have normally received.

You can also determine your pay back schedule.  You can decide how much, how fast and at what interest rate to pay it back.

Real Estate

Because of the financial crisis and credit freeze, people have realized how hard it is to access their equity.  Banks have used their power and closed HELOCs as they please.  People with good credit have even had a hard time getting access to their equity. 

As Mark Twain noted, “A banker is a fellow who lends you his umbrella when the sun is out shining, but wants it back the minute it begins to rain.“

What about trying to sell your house?  Can you imagine trying to sell your house in this market?  Let’s hope you don’t need to!

2.  Is your growth predictable and guaranteed?

Infinite Banking

The growth in a banking policy has a guarantee component.  It will always grow at the gaurantee and possibly a dividend on top of that.  The dividends are not guaranteed but the top companies for banking have always paid a dividend for 100 years plus.  Our clients love the fact that no matter what happens with other investments they are involved in, they have a guaranteed nest-egg at the end of the day.

Real Estate

Thanks to Robert Kiyosaki and The “DON”, Many people were counting on the equity in their home and cash flow from income properties to help fund their retirement.  What they didn’t understand was the fact that the long-term average increase in home values has been less than 1% a year, adjusted for inflation, even after taking several periods of rapid appreciation into account.  (This has been well documented by Robert Shiller, the co-creator of the Case-Shiller Index for measuring home prices, and author of the must-read book, Irrational Exuberance, published in 2005.)

Can you predict real estate values, whether residential or commercial?  Can you predict how much you’ll be able to charge to rent or lease your real estate, or how long it will take to find a tenant?

How Do Other Investments Like Gold, Commodities, and Currency Compare with Infinite Banking?

Every once in a while there is a run up with these type of investments. The excitement and hype is what gets people interested.

Here are a few facts: gold hit a high in 1980, then plunged and did not return to that level until 2006 – a full 26 years later! (Look for yourself on the web, such as MeasuringWorth.com.)

That doesn’t even take into account inflation of over 100% over those 26 years (according to the U.S. governments own data).

In 2008, many people, convinced commodities could only continue to skyrocket, were surprised by one of the worst commodity crashes in history.

We know that most of the time, today’s hot investment is often tomorrow’s loser. 

Sadly people think and say things like this… “but this time is different,” or “this investment can’t go down,” or “I’ll know when to get out”. This mentality is a sure path to financial insecurity.

With Infinite Banking, you could be able to predict the minimum value, and the minimum amount you’ll be able to take from your policy and for how long you could take it.  Any dividends paid will increase those amounts.

Using the Infinite Banking Concept will give you the best of both worlds.  When there aren’t any good investment opportunities,  there is no better place too let your money sit.  It sits and earns a guaranteed return plus a potential dividend in a tax deffered (tax free if you take it out right) enviroment.  When it’s time to take advantage of an investment opportunity, you can access the equit quickly with no questions asked and you don’t have to pay it back until you are ready.