NEVER Make These Infinite Banking Mistakes & GROW Your Wealth

If you don't understand the problem, the solution isn't going to matter to you. And if you do understand the problem, then the numbers in an illustration aren't going to matter. The value in the process is not in the illustration. It doesn't exist there. The value in the process is in the unseen of becoming your own banker. The infinite banking concept. All that money flowing back to your family. The peaceful, stress free existence, existence that you create for your life when the bankers are no longer a part of it.

Here is one of several infinite banking concept mistakes to avoid. The first one is thinking that this is a matter of interest rates. That's a fatal error. The process of becoming your own banker, the infinite banking concept is a matter of where the money is flowing to. So in other words, who's getting it, who that money is being put to work for and for how long? Rich.

Well, another one that I would say is a mistake to avoid is thinking that this is an investment or has anything to do with investments. The process of becoming your own banker, implementing the infinite banking concept in your life has zero to do with investing. They're not in the same realm. Okay, when you invest money, no reason not to do that, but you're placing money at risk. It's always at the risk of loss. That does not exist when you are dealing with the infinite banking concept, when it's designed properly and has nothing to do with investing money. It's all about money flowing through your life. How much of it can you contain and control and then reuse and repurpose as many times as possible?

All right, I think another mistake would be relying upon or being dependent upon and advisor. This is all about becoming your own banker. It's about putting the function in your hands. Not an advisor, not the banks, not the government, not some loan officer. So this is about you taking control of this function as it relates to your needs. Now of course it's important to work with an authorized infinite banking practitioner with the Nelson Nash Institute. Very important to do that because that advisor, that practitioner is going to mentor you through a process. But that person is responsible to you, not for you.

Another way of looking at that, at that is, you know, use a hockey analogy. Every hockey team's got a coach. Usually they have a whole bench full of coaches. They have coaches, they have a goalie coach, they have assistant coach, they have coaches for different things and skills. But the coach isn't the one out on the ice, stick handle in the puck and trying to put it in the back of the net. That's where the players live. And so you're the player in your own financial life. A coach is there to help give you coaching and guidance and recognize and see what's going on, to help give you some adjustments and tweaks to help optimize what you're doing already. Okay. That's what the coach's role is. You know, one of the mistakes, I would say that comes up for me, and this is something that I personally did. And, you know, we're always learning, we're always growing. So I personally have a policy that I set up and I did it myself, and it was early on and I didn't know about. At least in Canada, we have something called price bands. Price bands have to do with efficiency of a policy. And so when you go over a certain level or starting amount of initial death benefit, you can kind of get like a Costco discount. It's like a bulk discount kind of. And it just makes it a little bit more efficient, a little bit more efficient. And I personally have a policy that I put together myself that was just below one of those, because I didn't know that at that time. It wasn't something I was aware of, hadn't been described to me. No one had coached me through that properly. So that's still a great policy. That's not a mistake. The policy is good. Everything worked fine. Nelson would say, work with what you got. However, if I could rewind the tape and go back and do it over again, I would make some adjustments and changes. That's part of how we learn and how we grow. But that doesn't mean I'm not using that policy. I'm using that policy today. It works just fine. It just could have been a little. Just a little bit better. And so moving forward, those are some adjustments. And so that's part of what you do, is you learn.

In addition to what Rich just shared. I think another mistake is.

Not maintaining the distinction between the business that you're in that pays you, right? So this is what you do to earn an income, whatever your profession may be, and being in the business of banking. And so one of the biggest mistakes is treating your system, your policy, your system of policies in a way where you're stealing the piece. And so if you're accessing policy loans and you're not repaying them, or you are contemplating requesting a policy loan with no plan to repay it, that's just a polite description of theft. And so when you borrow capital from any other lender, any other third party outside lender that loan comes with a repayment schedule. And so when you recognize and you maintain that you are in the banking business, then you have to treat those transactions as a business and you have to be responsible with your system. Because if your system collapses as a result of not repaying loans or not paying premium or a number of other things that a person can do to adversely impact their system, a person's natural instinct is to look around to see, hey, who can I point the finger at? And you've make no mistake about it. You've got to look to yourself as the policy owner, because the late R. Nelson Nash used to say to us so often that the policy owner's behavior is far more critical than the behavior of the insurance company.

Yeah, that's a very good point. I'm really glad you said that. One of the other mistakes that comes up for me that I think about is.

The concept of the idea that people have often in their brain that they are either going to be, or they want to be in a position where they can, quote, unquote, stop paying, stop putting money in. We think about what the world has trained us to do, which is that, you know, we want to be in a position where we were not spending money on a bunch of things anymore, which is not right that you're going to be spending money throughout your entire lifespan. As long as you're taking care of your lungs, money's going to be walking out the door to someone. So instead we have to reframe our brain. And so what happens is people look or try to get policies where they have a shorter pay period and like it's a 20 pay or a 10 pay. Well, the problem is when you get past that 10 years or that 20 years, you can't put any more money into it. And the only thing that grows the policy and makes everything better and enhances everything that you achieve is premium. A premium has got to be paid to make that accomplished. Nelson says right in the back of the book on page 85. Point number two is if you knew at passive income time you would be getting back every single dollar that you put into a system potentially tax free, would you ever object to putting any more money into it?

It's a rhetorical question.

Of course you wouldn't do that. So you never want to kill the ability to put money into a policy. There's a lot of policy designs out there that we see that are happening where because of the way they're being set up, it's creating that restriction for people and they won't even know there's a problem until it's too late. That even happened to Nelson. Nelson had several policies where they were fully funded in 10 years. And he realized he created a problem. He didn't have more room to put money into deposits, he had to go get another policy. He would have been better off had he just got a policy where he had a longer pay period. He could have kept putting money into it. So these are things you learn over time. And I think that's one of the biggest mistakes that people make.

The right question that either a proposed policy owner or an existing policy owner needs to ask is how long can I deposit premium for if I own the bank? How much can I put in there? Not how soon can I stop? Who wants to own a bank that won't accept your deposits? And again, we're not talking about a bank in the traditional sense of the word. We're talking about a warehouse for your wealth where you're creating a policy or a system of policies which are dividend paying, participating, whole life contracts, that, that's the product. We're talking about the process of banking. And so would you ever want to own a business where you couldn't implement the very process that that business is supposed to be executing to? Well, the answer is of course not. And so these are some of the most common mistakes that are entirely avoidable. And we of course going back to the basics, making sure that you have an understanding of the problem, otherwise the solution won't matter. Because I think the final mistake that I'd love to point out is where people start with the solution without an understanding of the problem. So the question is not hey, what is the problem? The question is what life insurance companies do you deal with and can you run illustrations for me? And let's take a look at the product. Well, if you don't understand the problem, the solution isn't going to matter to you. And if you do understand the problem, then the numbers in an illustration aren't going to matter. The value in the process is not in the illustration, it doesn't exist there. The value in the process is in the unseen of becoming your own banker. The infinite banking concept, all that money flowing back to your family, the of value, the peaceful stress free existence that you create for your life when the bankers are no longer a part of it. And so focus on the problem, the solution will become clear and you'll know exactly what to do.

One more I'm going to add Jay, and that's the final mistake in my opinion is not reading Becoming your own Banker by R. And Elson Nash. If you're thinking about doing this process in your life at all or you've already started, if you're not reading from this book and you're not opening the pages of this book and reading something out of it at least several times a year, then you're not referring to the source material. This is the best guidebook and training manual for how to implement this in your life and it'll give you more gifts than you can possibly imagine by just reading it more than once. It is literally the gift that keeps on giving and everyone who wants to implement this process should a own this book and b be reading from it.

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