Richard Canfield explains that there's no fixed minimum to start Infinite Banking. You need to spend less than you earn and feel comfortable with the amount, which ranges from $100 monthly for juvenile policies to over $1.5 million annually for wealthy clients. IBC works as a system covering multiple people you have a financial interest in.
Chapters
What is comfortable and what is affordable? It must check both of those boxes or you have to adjust one or the other.
Clarity can increase your comfortability very, very quickly.
Clarity is the primary ingredient of comfort.
You're making a decision about a lifestyle that you're going to embrace financially for you and your family. Take a couple of hours of energy and apply it to the effort of getting comfortable.
How much money do I need to get started? I don't think getting started involves first thinking about how much money do I need. In my humble opinion, it all begins with desire, much like what Nelson describes in his book titled Becoming Your Own Banker. And when a person develops the desire and says, "Yes, I definitely want to get started," there's two elements that answer the question, "How much money do I need to get started?" The first element is that you have to be spending less than what you earn. That is the financial posture that you need to be in. And the second element is that whatever amount you decide, the answer to the question is, "How much money do I need to get started?" The answer is what is comfortable and what is affordable. It must check both of those boxes, or you have to adjust one or the other. It could be comfortable, but you're not checking the affordable box. It could be entirely affordable, but you're not quite yet comfortable. Well, then the amount is off, even if it's affordable, you know. So you have to be able to check both of those boxes with the authorized infinite banking practitioner that you're working with. And that's where you start. And this is meant to be a system. It's not meant to be achieved through the device of a single policy. You should eventually insure everyone that you have a beneficial interest in.
And I want to expand on comfortable because I like the way you describe that, Jason. Comfortable when you're just starting this process and exploring, you just heard about this yesterday. You might have a very different context of what that comfortability feels like versus after you read the book, after you watched maybe a webinar or a couple of our client podcast episodes, or you've, you know, you've watched the Nelson documentary film. You've done a little bit of effort because you're making a decision about a lifestyle that you're going to embrace financially for you and your family. Take a couple of hours of energy and apply it to the effort of getting comfortable, right? Then you meet with an authorized practitioner, you have a good discussion, you find some questions that you have that you want to dive into, you get clear on those things, you see a couple of examples, and that person has most likely been trained to understand your different financial dynamics and how they might, you know, coalesce. And they can say, oh, I see this and I see this and I see this. I've seen these things before. I know there's a way we could put this together that would allow you to make, to create this type of an outcome. And then they can explain how that might work for you so that you can have clarity. Clarity can increase your comfortability very, very quickly. So that only happens when you can meet with someone so that you can get to that level of clarity. Hey, I like free stuff. I hope you like free stuff. In fact, we got something for free you can download right now. It's a copy of our book. Cash Follows the Leader. This book is all about how you can develop uninterrupted daily growth with high cash value life insurance. We explain a ton in there. We even have some fun images so you can follow along. Go ahead and go to cashfollows.com— that's cashfollows.com— and pick up a copy for yourself today.
Oh yeah, clarity is the primary ingredient of comfort. The next question: what is the minimum premium. We, we have clients that contribute as little as $100 per month on a juvenile policy. That would be a policy that they purchase on the lives of their children, their grandchildren. And we have clients that pay more than 7 figures a year in premium, including me. My premiums are $1.569 million a year. Soon to be a little higher. And so we always say that if you're somewhere in between those two numbers, we can help you. And it— what people develop a, a deep understanding of when they go through our process of being educated and resourced on this process, they develop a deep understanding that this all begins where you, the potential policy owner, determines is the best starting point for you. Does each insurance company have a minimum premium in terms of what is the smallest starting face amount or death benefit of an insurance policy, and what is the corresponding premium? What would that minimum threat be? Absolutely, every insurance company has that., but that's their minimum. And so what your minimum is, as we mentioned earlier, has to check both boxes of comfort and affordability.
And working with a coach, you'll help discover and understand that. And they've had experience figuring out, okay, well, what's actually happening with your cash flow in your life? Like, there's things that you don't necessarily always think about that are happening that they have an idea on how to see and show you a different way of looking at it because they have experience in doing that. And to take this one step further, you know, the minimum amount would also have some relevance to, to again, the age of the life insured person. So what is that output going to look like depending on who we're insuring? So there can be some relevance there. And like, as an example, I have a gentleman, he's in his, uh, late 40s, he's about to apply for a corporate policy That policy is going to be a little over $100,000 a year, but his minimum requirement on that one policy will be around $30,000 a year. So he has a minimum and he has a ceiling. But the total he's looking at, what he's wanting to contribute, is, is the $100,000 number. And he knows the dynamics between the minimum and the maximum. Similarly, I have a gentleman that I met with recently, nice man, exploring this for the first time. He's in his very early 60s. He doesn't have the same cash flow position. Had to hit the reset button back in 2008. Jason, we had some stuff that happened back in 2008, right? Sure. Do you know some people that had to hit the reset button? Quite a few. Yeah. So that happened at an age of life where they're, they're still plugging away at, you know, that rebuild process and, you know, good, good on them. Good for them. So starting at that point in time, coming into this equation, They, they're maybe looking at a budget of around $1,000 a month that they can work with presently. Well, in order to get that started, because he actually needs insurance, needs coverage to protect the family in the situation, we're probably looking at a $350 to $400 minimum just to get that done with the budget they have and how it all puts together, because there's a bunch of uniqueness in their scenario. Now, that will be different for every person because your life, your financial situation is different than the person next to you. That's why you need a coach to be able to assess that logically, look at it from a pragmatic standpoint, and help you understand your own circumstances. Go ahead, take a look at the next episode down below and make sure you get a copy of our book, Cash Follows the Leader. Go to CashFollows.com and get a free copy right to your inbox.
