Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Compound Your Money Through Policy

23 Apr 2024 · 1 min

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Richard Canfield explains how compounding interest accelerates over time and that true compounding requires money to "sit still" in an environment such as an insurance policy. He argues that by using other people's money (OPM)—specifically the insurance company's capital—investors can continue to put "motion on capital" while preserving their own capital, enabling indefinite growth.

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So that accumulation of interest that's happening, if it was just at that simple 3% amount, well, that's just now picking up steam. So for the next 13 years, what's going to be even greater? It's going to start to curve its growth rate even further because of that hour of time. So compounding can only really happen inside of an environment where money can sit still. And in a policy, it's essentially sitting still. But we're able to utilize opm, the insurance company's money, to be able to continue putting motion on capital. It's just not our capital we're using motion on, it's theirs, so that ours can maintain the ability to continue to grow indefinitely, and that's really, really powerful.