A YouTube video (Feb 14, 2021) by Jayson Lowe explaining how the Canadian Infinite Banking concept (using participating whole life insurance policies) can preserve and grow purchasing power versus inflation. Lowe argues that properly structured policies ‘increase in value’ even while policyholders access funds, avoiding erosion of the asset base that happens when withdrawals are taken from savings or tax-qualified plans.
What about inflation? Do your retirement income examples include inflation which reduces buying power? 40 years of inflation, 1.7. You know, he's talking about buying power. So Obviously you know, $3 million in 40 years from now is going to be worth a whole lot less. But you know it's still going to buy whatever it buys, right?
Absolutely, yeah. And you know, it's. When you think about inflation, think about what you paid for a chocolate bar in a can of pop or soda when you were just knee high to a grasshopper versus what you pay for it now.
If you have a policy that's increasing in value that is beating the pants off of inflation, how much capital do you want residing there? What's the alternative? You see my pool of financial value and all of our clients pools of financial value continue growing uninterrupted even when they're spending money. And so just by virtue of that, we're beating the pants off of inflation. When people are storing money inside of tax qualified plans or inside of savings accounts, the only way they can get to it is reducing the asset base. They have to reduce the asset base by withdrawing the money. So regardless of what's happening with inflation, you're already eroding the asset base because the next time you go back there, there's less money than there was the last time. Whereas inside of your system there's more money because it never stopped going up in value. So it becomes a choice. I know that my money must reside somewhere, so what better place to have it reside than here?
