Is Infinite Banking a Scheme?

A dividend paying whole life insurance policy has a platform to do this with. And one of the things he said, and I found this pretty interesting, is that people, those who understand it, do it and those that don't understand it, don't do it.

Hi. Today I thought I'd answer a question that I've heard and it was, is infinite banking a scheme? Well, that's a great question and today I'm just going to dig into that. I'm going to give you my thoughts based on my knowledge. If you don't know, I'm an infinite banking practitioner. So I've been utilizing it myself and my personal life for eight plus years now. So I have a really good understanding of it. Plus I've been trained and how to teach and educate other people on it. So I think I'm in a good position to speak about whether infinite banking is a scheme or not. So I thought today, just to start this off, let's talk about what is a scheme. So with that I just wanted to do a bit of a share and look at the definition. When we look at the definition of the word scheme, this is what you get out of the Merriam Webster definition dictionary. A plan or a program of action, specifically a crafty or secret one. So I think when I think of a scheme, one of those schemes that comes to mind for me is like a pyramid scheme. And you probably heard about it. I have. And how they work, Someone starts the scheme and they entice people to join in. And when you do, you join in. Usually it's money you send to someone else on the list, but it can be other things. And what you're focused on is eventually people will start sending you stuff just like you did originally. And that's a pyramid scheme because what happens is it's, you know, people at the top, they're the ones that get all the rewards, most of the rewards, because they're, it's always coming towards them and it's the people that start those that end up with the most benefit. So I think you probably heard about those. And there's other ones like multi level marketing schemes and just things like that. So it's something that's just a little bit crafty or secret and they're really, you know, hoping that people buy into it, don't really understand who's gaining, who's getting the most benefit out of this. And so that's more or less what a scheme is. So now when we talk about infinite banking, does it fit into that category? That would be the question, well, for me, it's called the infinite banking concept for a reason. And what's the difference between a scheme and a concept? So what I thought I'd do is I'd look up the word concept and we'd have a look at what that is. So again, same dictionary definition of the word concept. Something conceived in the mind, a thought or a notion. So.

That'S just a good eye opener. So let's just talk about that for a while. When the infinite banking concept got its birth was through a thought, a notion. Nelson Nash, who wrote the book becoming your own banker, get yourself a copy if you don't have one. He's the one that came up with this thought. He was thinking and he thought about some things that really resonated with him. And one of the first principles of the infinite banking concept is that, you know, Nelson discovered, and it's a truth, is that you finance everything you buy.

That's right. All of us do that. There's no exceptions. And so that was one of those thoughts that hit him. He said, okay, so if I'm financing things, everything I'm buying, every decision I make is a financing decision. Well, what's wrong with that? Well, what happens if, if, you know, instead of me sending money to someone else to use their money, because that's what happens when you borrow money from someone else's pile. You're paying interest. So what happens if, you know, I could build and had that pool of capital myself that I could borrow from when I needed. So we started to build this thought, this notion in his mind that he could do something differently. And it just came to him that, you know, he. He happened to have access.

To a way to do that where he could build capital. And then as he needed that capital, he could utilize the value of that capital without ever interrupting its growth. And that's what he started to figure out as he started to think about the infinite banking concept. And it is a concept because it's not about a product, it's about a process. And there's a lot of pieces to that process. Now, one of the key principles that we already talked about is the one that I really want you to understand because it's based on truth, and that's that you finance everything that you buy. So what would it look like if you could change the outcome for yourself? And just to share with you, the infinite banking concept is about privatized banking. That's right. It's about privatized banking at the you and me level. So ideally, we what you do is you take a contract with another private entity. In this case, it's a privately owned life insurance company. And yes, you can practice the infinite banking concept with stock companies, but just be aware some of the profits get shared with shareholders. But you can also practice this concept with mutual companies where all the profits of that company get shared with those who are participating in that pool. A dividend paying, participating pool. And so Nelson discovered this concept and he discovered that, you know, you could warehouse your money in that platform. And once you warehouse your money in that platform and you build it up over time, you get to access it and you're not taking it out, you're not interrupting the growth. That was the other part that he recognized with this product. It allowed him to have it somewhere where he could leverage it for the things that he needed in life. So he would borrow against his cash value, he wouldn't take his cash value out, he would borrow against it and his money would keep on growing. So it becomes uninterrupted, compounding over your lifetime. And if you think about that, so what's the difference? He borrowed, he pay it back. And he also taught us, as he thought about this whole notion is if you're paying it back, you got to treat that pool, that value that you control, even better than how you treat someone else's pool. So we already know that if we're using someone else's pool of money, we have to pay them interest to use that money. And rightfully so. Hey, they're the one that went to all the trouble to build up or have that pool of money that's available to you. So it's only rightfully so that you should pay to use it. And so when you do that, it works. Hey, most of us, if not all of us, have used that process. It works. And what's happening is as you pay that interest back and those and those payments back, your money flown away from you and someone else is building wealth. It's not you. Now, if you had a system that when you paid it back and paid yourself back, your value, you know, kept on growing all the time and you can access that money again. That's what he figured out, is if you could have a private banking system, because banking is the most important business in the world. If you don't believe me, we've got some other great videos on this site. This talks about why that is. Because money has to move. And in this world, if money stopped flowing, everything as we know it would come to a halt. So banking is the most business, you know, most key business in the world. And you and I bank every day. That's right, we bank every day. That's what Nelson all those thoughts and notions that come into mind. He started to form this concept that, hey, if I could end up with control and if I could have my money somewhere where it's going to keep on growing day in, day out, day in, without fail, this is going to put me in a better position. And when you think about what you do financially, it's all about compared to what? So compared to if you did the same thing outside of this system, you know, so your returns were this, and then you did it inside this system and your returns are the same because you did the same thing. Just access capital from a different place. Well, when you use your own system, your values are always going to turn out to be better than someone else who used either someone else's money to do it, like where they borrowed from it and, or where they paid cash. Now this whole notion of, you know, there's, you make a financing decision with every time you use money. Either pay interest to someone else or you give up the interest you could have otherwise earned. An important thing to know. And how would you, you know, how would you get around that? So what he discovered through this process is that you can, you know, still have access to money capital when you need it and spend it just like everybody else. But you're not spending your money. Your money stays in your contract and it keeps on growing day in, day out, day in, day out. It grows, it has to by contract and it's a unilateral contract with the life company. So it's all based on dividend paying whole life insurance. That happens to be the best platform that's been found to do this for people try it with other platforms, but that's the best one. Now if you find a better one, let me know. I'd love to know. But it's just a platform. The concept itself is about gaining control. Understanding that, hey, since every decision I make with money is a financing decision, how can I use that to my betterment? Well, if you can control, have that pile of capital, get that control, it's going to make a big difference for you over time. And what I'm going to encourage you to do, if you haven't heard about the infinite banking concept, is to, you know, go and watch watchibc.com that link's going to show up below here. It's watchibc.com and it's a 90 minute video that will give you a lot more background than I'm going to give you during this short video about whether or not infinite banking is a scheme or not. Now, infinite banking is definitely a concept. It should come from a thought. If you read Nelson's book, he talks about how it was born and you know, and it's a thought that came to him and he just started to think it through and utilize, you know, a tool that he had and realize this is a great tool to practice privatized banking. So it's a concept and it's based on privatized banking at the you and me level. And again, one of the things that I find is there's, you know, when I did my due diligence, looking at this whole concept and what's it mean and just wanted to hear from people who had come from different walks of life and you know, had different thoughts. And one of those people that I got introduced to was a cpa, a certified professional accountant. And this particular CPA had spent a lot of time studying dividend paying whole life insurance and this whole concept that we know as the infinite banking concept. And one of the interesting pieces that he shared, he's got a series of books now, this is one of his books and they're all that series, all based on the Confessions of a cpa and it's by Brian S. Bloom. And he's got about three books out and they're just a great series to read. And one of the things I remember from what he said, and if you really want to hear him speak, you've got a great opportunity. You can go to our podcast channel which is called Wealth Without Bay Street. That's right, Wealth Without Bay Street. And I'll just put a link in the bottom for that and you can just, you know, do a search for the broadcast that Brian was part of and he speaks about what he's learned through his profession and through his studying a dividend paying whole life insurance policy as a platform to do this with. And one of the things he said, and I found this pretty interesting, is the people, those who understand it do it and those that don't understand it, don't do it. So when you think about infinite banking and you've heard, you know, is it a scheme? Well, I'm going to tell you, it's a concept. It was founded on a thought that Nelson Nash had at one point about how he could control, how he could gain control of the banking function. And that's where it's got its foundation and it's not about dividend paying whole life insurance, even though that's the platform we use because it's the best platform we found. It's about the process of banking, how you can control your need for financing. And if you do that, everything you do financially will be enhanced. That I know. I've been practicing it and I started. I'm already seeing the results of that and you can too. So I just encourage you to do two things. If you haven't watched Watch I Beats C Com do that. If you don't know about the infinite banking concept, there's a great place to start and take in more videos on our channel. We've got lots and lots of different insights as to how you could use this to benefit you and your family.