So, your capital must reside somewhere. The question is – where do you store it?
Our investment membership The Phoenician League held its monthly discussion call last week. IBC specialist Brian Moody joined us to talk about the magic of the Infinite Banking Concept (IBC).
Imagine, for a moment, the perfect financial system… one custom-tailored to your needs. Imagine a system that’s absolutely guaranteed to grow, year after year. A system that grants you total control and liquidity. No ticker symbols going up and down here.
Need to access funds? No problem. Your money is there, ready to be deployed at a moment’s notice. And guess what? You can access your funds any time, for any reason. There are no arbitrary restrictions and certainly no taxes or penalties.
With the financial system we’re imagining here, it’s your castle. No one can breach it. What we’re talking about is unique in the world of finance.
I’m sure we’re all familiar with the standard financial advice. It says we should pour our savings into tax-tomorrow accounts. These are 401ks, IRAs, SEP IRAs, and similar vehicles. They allow us to defer paying taxes on our savings until when we want to access our money.
The traditional financial plan also supplements these savings vehicles with tax-today accounts. These are savings accounts, money market accounts, and standard brokerage accounts. With these, we pay taxes on any money we make every year.
If we listen to the traditional advice, this is the main choice we have to make. Do we want to put our money in tax-tomorrow or tax-today accounts? Or some combination of both?
But the system we’re envisioning today falls outside that paradigm. It’s a tax-never account. It’s a place where our money is guaranteed to grow year after year, and we’ll never owe a dime in taxes on that growth. It doesn’t matter if we make millions inside this account, the tax man will never be able to touch it.
Sounds like a dream, right? But it’s not. What we’re imagining is the Infinite Banking Concept put into practice.
And as Moody informed us last week, this is the primary strategy banks and financial institutions use to shield and grow their wealth. They tell us to choose between tax-tomorrow and tax-today accounts… but the banks don’t make that choice themselves. They utilize the tax-never system that is IBC unleashed.
Here’s why that’s critical…
I presume we’re familiar with the principle of compounding interest. This is the idea that if we can earn a rate of return (interest) on our savings, that rate of return will grow exponentially over time. That’s because we earn the rate of return on a larger and larger nest egg as it grows.
Here’s how it works… Let’s say we invest $1,000 with an annual interest rate of 5%. After the first year, we earn $50 in interest. So now we have $1,050.
The magic happens in the second year. Instead of earning 5% on the initial $1,000, we’re now earning 5% on $1,050. So, our interest for the second year is $52.50, not just $50. This process continues every year, with the interest earning its own interest. It’s like a snowball rolling downhill.
Einstein famously said that compounding interest is the eighth wonder of the world. But that’s not exactly true…
Compounding interest is only a wonder when the compounding process is uninterrupted. That is to say, when nothing impedes our compounding. Let’s illustrate this using our example above.
If we invest $1,000 earning 5% a year, we’ll have $11,467.40 after fifty years. That means we’ve grown our money by over 1,000%.
Now let’s suppose we have to pay 20% in taxes on the interest we earn every year. If that’s the case, we would only have $7,106.86 after fifty years. Our gain is only 611%.
As we can see, taxes interrupt the compounding process. Over time, this eats into our rate of return substantially.
And here’s the thing – this example assumes constant 5% growth. If we were to have a negative year, that would interrupt the compounding process as well.
Using our same example from above, let’s suppose we invest $1,000 earning 5% a year, but every third year we lose 5%. If that happens, we’ll only have $7,593.42 after fifty years.
That’s assuming no taxes. If we have to pay 20% on our interest earned each year in this example, we would only have $5,228.36 after fifty years. That’s less than half of what we end up with when our compounding is uninterrupted.
That’s why it’s so important not to interrupt our growth.
But think about it… how many folks do you know who’ve retired with millions in their 401(k)s? Not many, right? That’s because typical financial advice doesn’t consider negative years in the market. They stunt your growth and interrupt your compounding.
That’s the magic of Infinite Banking. It provides us with contractually guaranteed growth, year after year. There cannot be any down years. And it ensures that our earnings are safe from taxes. The tax man can’t interrupt our system either.
The Infinite Banking Concept isn’t just a method. It’s a mindset shift. It’s about seeing the potential in your own money and letting it loose, unchained, to do the hard work for you. It’s about ensuring that you, your children, and your children’s children have a financial legacy… an impenetrable castle.
What if you could build a foolproof shield against inflation and financial downturns? What if you could structure a system that provides immediate access to your money yet creates a guaranteed pension plan and builds generational wealth? Who wouldn’t sign up for that?
Only Infinite Banking provides all of these features together. And that’s where our IBC course comes in. We’ve put together a guide that will walk you through the big picture and the small details of Infinite Banking… revealing its magic to you step-by-step.
Unlock your financial freedom. Don’t remain stuck in the same old hamster wheel of traditional banking. Learn how to implement the Infinite Banking Concept. Dive headfirst into a world where your money listens to you… where you’re the conductor of your financial symphony.
For those who are fiscally-minded, your journey towards unchained wealth begins here. Enroll in our Infinite Banking course today. You can do so right here: Infinite Banking Unleashed.
Welcome to a world where your money finally works for you!