John and Nelson explain how the Infinite Banking Concept lets you borrow against life insurance policies instead of using banks. They compare it to traditional saving and show why it works whether you're young or older.
People have to change their thinking. My whole thing is there that if you want to save money, this is a way to do it if they are willing to learn how to handle their money properly. And certainly IBC is one way of doing it.
I'm curious, what would you say to someone half your age who thinks it's.
Too late to start the idea of saving money? You know, everybody likes to save money and, and they know that saving is for a purpose, you know, to buy something and then, you know, like, you, okay, finding your spend and it's gone. So how do you hang on to get, how do you hang on to that value, that, that money? That's. That's the thing. And so here you have an opportunity of where you, you don't really lose your money. It's. I don't want to. I don't like to use the word investment, and I don't like to use the words of buying insurance either. But it's, it's a, it's an, It's a concept. Right? Right. It's. It's a, It's a vehicle that you use to put your wealth in or put your money in. And it just keeps, it just keeps going. And so you borrow against what you have in there. So unlike stocks, because when you buy stocks, you buy part of a company and you hope that you get a profit here, you buy part of a company because that's basically what you're doing with the insurance. Here, you're buying a part of the company, but you're getting, you're getting your, your, Your dividends and you can. And your, your personal money that you have in there just keeps, Keeps growing. So as you borrow money against it, you're profiting, right? There's a profit all around. And that's what got, that's what really got me interested because I had some debts that I wanted to pay and I had the money in the account for it in my savings account.
If you were speaking to somebody watching this video or listening on their podcast app, and they were either just beginning to investigate this concept or maybe they've investigated it and they're sort of sitting on the fence, what would you say to that person? Heart to heart?
Well, for one thing, yeah, read the book. Get the book and read it. Because really, Nelson, you know, it might be a little hard to understand at first, but he was right on. And the examples that he uses and really makes a person think, like, you have to, you have to rethink your thinking, you know, and Nelson said that too. You have to rethink your thinking. Like young, young people today, they don't, they don't seem to really have much of a. An idea in, in regards to saving money.
Oh, ain't that the truth.
Yeah. You know, you got. I know from experience with my kids, they. And you give them a hundred dollars and they go blow it and they say, well, why didn't you save it? Oh, I got another check coming next week. Okay, but you haven't got it yet. But you've already spent it. Where's the. You know, so, yeah, people have, people have to change their thinking. But the, My whole, My whole thing is there that if you want to save money, this is a way to do it. The, the. The whole IBC concept there. The, the money. Because the money is always there and it keeps growing. You don't have to do anything. You don't have to run to the bank. And if you, if you need to take a loan from it, you request it. And my experience was that within three days I had the loan. And you pay it back as you go. It's nice if you could pay it monthly, but if you can't, you pay it back as you go. And if you don't pay it back, well, in this case, there, there's the life insurance part that kicks in. So there's money, always money. There is just the only thing is there that if you take all your money out and you borrow it or you make a loan on it, you're going to have to wait for a while to build up again. It's not going to be just. It's not going to be back automatically. You got to, you know, wait for it. So paying it back, like, like I already mentioned, I used to work in the grocery store, so I know all about the peas. I've seen the pews go out the back door. Yeah. So you got to replace the peas. Right. So keep that, keep that shelf stock and. Yeah, it only make. Only makes sense. My kids had a hard time explaining it to, to a couple of them. My oldest daughter, the one that got me looking at this there, she's got her policies. I explained it to my wife and I figured I was going to really have a hard time there. And she just says, why didn't you do that earlier? Okay.
Boy, that was. I bet you, you felt, you know, obviously great.
Yeah. But that big.
And you know, John, given that you've lived, you know, you've lived through a lot, right. You've seen, you've seen a lot of inflation. You've seen economic crashes, you've seen wars. You know, all of these things that you've lived through. How does, how does the infinite banking concept measure up to all the other financial advice that you've received over the years?
Well, when, when I, I believe you're the one that mentioned it, about how, in this case, the life insurance has never failed.
Right.
All these years, it's always been a positive. It's never been in the negative. And I checked that out, and you're right. Yeah. There's no doubt about that. So that was a plus on my scale.
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