5 Reasons Why Infinite Banking Makes More Sense Than You Realize

There's a reason our education system doesn't teach you about money.  There's a reason our education system doesn't teach how the banking system works.

Until you understand the reasons why, you are simply a pawn on the chessboard.  Limited in movement and the least important piece in the financial game we are living.

To help you grasp the bigger financial picture, you need to understand WHY Infinite Banking?

If you don't understand the reasons why, you're like a rudderless boat drifting whereever the current moves.  So here's 5 reasons to help you understand your financial WHY the Infinite Banking Concept (IBC) should be examined for your situation to determine how you can benefit:

1. IBC is a financial system that guarantees what you want to have happen, will happen, even if you're not around to see it happen.   An IBC Whole Life policy (designed with a Paid Up Addition's rider) comes with the strongest contractual guarantees that can be found anywhere.  Uncorrelated compounding asset growth materializes every year without any luck, skill, or guesswork (even when you leverage policy loans to buy more wealth producing assets!).   

Whole life policies are the only type of permanent cash value life insurance contracts that endows meaning the cash value will eventually equal the death benefit regardless of whether that happens next week or at age 121.  The financial success of a Whole Life plan is reverse-engineered to provide an annual blueprint of increasing value.  No other place for money does the same.   Think about it.

2. IBC is full reserve system.  Unlike a traditional banking fractional reserve system where your deposits are leveraged to make new money to lend at interest, the life insurance industry is afforded no such money printing luxury.  By law, all liabilities must be equaled by assets on the balance sheet of a life insurance company.  This is called solvency.  The life insurance industry has it and must maintain 100% solvency by law.  This means money held by a life insurance company is with the safest financial institution and industry in the world.  This alone is reason enough why banks place up to 25% of their reserves with life insurance companies in permanent cash value life insurance contracts called "Bank Owned Life Insurance."  No life insurance company would ever risk more than they possibly have to in a traditional bank account.  Think about it.

3.  You 100% control it.  A Whole Life policy is considered an asset because it appreciates in value every year and it is owned by the policyholder.  There is government or 3rd party custodian with overriding control of a Whole Life policy.  401k/IRA's are created by the government meaning you partner with an ever changing landscape of politicians in Congress who in most cases fail to represent your best financial interests.  A Whole Life policy in comparison is simple because it is a unilateral contract (grandfathered in place) between two like minded parties:  you the individual and a privately owned mutual-based life insurance company.  No rent seeking 3rd parties needed.  Think about it.

4.  It cannot be taken away from you.  Money in a banking system can be confiscated at any time.  While it is your money, you must follow the rules set by the banks.  Banks can censor any of your financial transactions and are required to report anything deemed suspicious no matter how inoccuous.  The IRS can put a lien on your bank accounts and restrict your access without warning.  

A properly designed and funded IBC Whole Life policy is a private contract existing outside the realm of bank and IRS reporting.  Considered private property, it cannot be seized from your grasp (unlike a house).  In short, you have to abide by bank rules and be on good terms with the IRS to have access to your own money.  Think about it.

5.  You can live life on your own terms.  Infinite Banking is a strategy that creates an alternative financial system that protects you, your family, and your labor (translated into money).  Whole Life policies have existed for nearly 200 years largely unchanged because the contract law that protects it as an asset along with the actuarial science that guarantees the financial performance have been proven to work since they were first created.  

Although Whole Life policies were not created to function as an alternative banking system, if one examines the banking function of a traditional bank (and the true reason why people bank... we all need access to large amounts of capital throughout our adult life) and compare it the banking function with a Whole Life policy, you will discover a far more robust system for money that not only puts individuals and families first, banking with Whole Life (the IBC strategy) also provides long-term benefits for the economy with less of government meddling or "aid" from your local and federal overseerers.  Ultimately, the Infinite Banking strategy is about regaining your freedom from a top down system that doesn't ever want to be fully in control of your own life.  Think about it.

Elevate your understanding of money and banking, you will elevate your financial status.  No need to be a financial pawn.

To learn more about Infinite Banking, schedule time in my calendar at www.IBC.guru.

Thank you,

John Montoya

3 Things To Consider When You Delay Getting Started With IBC

 

It's possible you’ve been looking into Infinite Banking for a few months or even a few years now and perhaps you've yet to get started.  Sometimes the hardest thing is taking a leap of faith when doing something for the first time.  A few things to go consider:

 

1. We don’t get any younger and our current health is never guaranteed.
2. This is a guaranteed contract.  It’ll grow every year without any luck, skill, or guess work… and it gives you tax-free access to cash values via policy loans for any reason without interrupting the growth.
3. If you have a family to protect, there is no better option for your “safe money”.

 

Check out my podcast if you’d like to continue to learn at your pace:  www.TheFifthEdition.com

 

Calendar:  I’ll be here when you are ready.  

Just keep in mind point #1 above and remember this:  

Time is the one thing we don't get back.  

Until this is taken care of, there are no guarantees except, of course, death and taxes. 

 

Cheers,

 

John

 

Five Reasons To Borrow From a Whole Life Policy instead of a Bank

Here are 5 of the best reasons to borrow from the insurance company against your Whole Life policy versus borrowing from a bank: 

* No application process. I ask for the money and I get it. I don't have to qualify...ever! 

* Instant liquidity of repayments. Every dollar I repay on my policy loan is instantly available to be borrowed again without application or qualification, as opposed to a bank loan where payments simply reduce the unpaid principal balance. 

*  Another huge reason for borrowing against your life insurance policy is the flexibility of the repayment plan.   This is especially important if you are business owner with cash flows that fluctuate monthly.  Re-pay policy loans based on your schedule, not the banks.  

* Privacy.  If you have kids to put through college, consider that your bank assets, and even your kid's 529 account, will account against them when qualifying for finanical aid.  You can pay the retail cost of college but wouldn't you rather get a discount?  Strategically placing money in life insurance contracts shields this money from prying eyes.  It also helps you in retirement because policy loans used for income are tax-free and won't bump you into a higher tax bracket.  Retirees with 401k distributions have to report taxable income that potentially reduces Social Security benefits.  Ouch!

* Uninterrupted compounding growth of your cash values.  Simply put, you continue to grow your wealth even when you take a policy loan to use somewhere else.  I call this "Dual Compounding".

Albert Einstein is noted for saying:

"Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it."

In summary, total control is in the hands of the policy owner.  You decide how much and when you pay back the loan.  For best results, don't "steal" (borrow without setting up a payment schedule) from yourself.  Maintain discipline.  Paying back your loan re-capitalizes the policy for future use.  

Let me know what questions you have about Infinite Banking.  You can find me here:  www.IBC.guru

You can also hear me talk about Infinite Banking on my podcast here:  www.TheFifthEdition.com

Thank you,

John Montoya

401k Employer Match - Food for Thought

"Any necessary change in your life will involve the way you think and your willingness to change the way you go about it." - Nelson Nash


I'm thinking about 401k's and the match some people receive from their employers and I wanted to share this thought with you.

If you stop to really think about it, the employer match to a 401k isn't "free".  It's certainly nice to think of it that way.

However, if you're thinking like a business owner, the truth is that is that match in a 401k plan is really part of the employee overall financial package.  It is part of your overall gross pay.

Some employers provide really great benefits and the trade-off is a lower salary.  It's no different with a 401k match.  The match is a benefit but ultimately it is part of your compensation package.

There is no free lunch.  Period.

Whether you choose to accept it is entirely up to you.

Think of it like a gift card.

Businesses love gift cards because many gift cards are never used.  Some get tossed without ever using the entire balance.  This is especially true with gift cards that may have an expiration date.  That's money the business can eventually re-purpose elsewhere.

When you don't opt to take advantage of the 401k match, that's part of your compensation package you're leaving on the table.

Just don't consider it free.  It's yours... if you want it.

The big question: is the match worth it?

Instinctively, yes....right?

If you understand and practice Infinite Banking, there's definitely more debate about the merit of the 401k match however.

After all, accepting the match means locking up your contributions until age 59.5.  That's money no longer in your control, prone to losses, 2-3% in 401k and mutual funds fees per year (smaller companies have the most excessive fees due to economies of scale), and ultimately a permanent tax lien upon withdrawal.

Also, that employer match potentially means you'll have more in your 401k account.

Great, you say but you will also have a higher probability of paying a larger % of taxes upon your withdrawal.  That match is essentially extra revenue for the IRS. 

(This is simply human nature to pursue self-interest, not conspiracy-- when Wall Street earns a guaranteed fee on every dollar you contribute for the life of the plan and the government is waiting to collect their portion, too, do you ever stop question their motive in recommending you be all-in on maxing out your 401k?)

Suddenly you begin to realize the match isn't really a 100% no brainer like conventional wisdom would want you to believe.

It's my experience that the prevailing convertional financial wisdom has a way of leading people into financial bondage instead.  This is what happens when society turns to government solutions instead of figuring things out on our own.

Government, banks, and Wall Street absolutely all have something to gain by your continued participation.  The wise consumer will look to protect their money from prying hands (fees and taxes) by looking at every dollar they save as their own personal property.

A 401k/IRA is bit of lobster trap if you ask me.  (Understatement of the year.)

If you decide there's no other choice than a 401k or IRA, it will be the best you can do.

But is it the only option?

Of course not.

IBC proves this because it is a private contract between two private entities, you and a mutual-based life insurance company (owned by you-the policyowner!).  When you capitalize your own pool of money within a dividend-paying Whole Life policy, you're actually choosing a tax-favored property that when used properly can help minimize taxation and grow wealth uninterrupted, even while you use the money elsewhere!

The more you learn about IBC the more you will actually be forced to think like a business owner.  Whether you run your own business or not, you must realize there are 2 businesses you should participate in.

The first business is currently what you do for income.  The other business should be the eternal business of banking.   You are already a bank consumer.  The difference is you shop at a bank you don't own or control.  Might as well understand how banking works so you can benefit from acquiring your own pool of money to build your wealth.

It's a pretty simple solution to life's biggest financial problem (the ability to save more than you spend) once you realize there is another option than a 401k.

Pop Quiz

1. How much money do you save each year?
2. How much do you spend on fixed expenses (car loans, rent/mortgages, taxes, vacations, tuition, etc) each year?

Are you saving more or spending more?

The average person spends 3.5x more than they save but they have been conditioned to focus on the smaller amount never realizing they have the ability to take control of the larger amount to create wealth.

Pick up a copy of Becoming Your Own Banker by Nelson Nash if you haven't already.  It is an essential starting point to guide you on a path of your own making, towards a financial lifestyle that you ultimately can control by eliminating the IRS, banks, and Wall Street from your life.


"Action is preceded by thinking.  Thinking is to deliberate beforehand over the future action and to reflect afterwards upon the past action.  Thinking and action are inseparable.  - Ludwig von Mises


Thank you,

John Montoya

IBC Mailbag: 3 Ways To Access Money from a Whole Life Policy

The following is an email reply to a new client requesting to access money for the first time.  This client emailed me requesting to "withdraw" money to pay off a car loan.

Hi ______,

So I’m going to be a bit of a nerd here because I want to be sure we are using the correct wording/terminology.

The best way to access funds is via policy loan because it doesn’t interrupt the compounding effect of the money in the policy and it is also a non-taxable event.

Withdrawing money physically removes your own money from the account and interrupts the compounding effect. 

I explain accessing money from a Whole Life policy this way to keep it simple:

There are 3 ways to access money

1. The Sad Way
2. The Dumb Way
3. The Smart Way

The sad way is you pass away and the beneficiary gets the death benefit.  Let’s avoid that for as long as possible!

The dumb way interrupts compounding growth. 

The smart way, as mentioned, doesn’t interrupt the compounding growth of the cash values and is tax-free.

Utilizing the "Smart Way" allows you to be your banker.  You are essentially replacing the car finance company from the equation.  All the payments you would send to the car finance company will now be returned to your banking system (the whole life policy) where it will earn a guaranteed tax-free rate of return for the rest of your life!

All of this is possible by becoming your own banker through a dividend paying whole life insurance policy.  Why pay other financial institutions when you don’t have to?

So all that shared, it will take 3-5 business days upon request of the loan to see it in your checking account.  You’ll need to provide the insurance company with a voided check if they don’t have a checking account on record for you.  Also, I strongly recommend setting up a monthly draft for the policy loan repayment for at the least same amount you were sending the car finance company.  It's important to be an honest banker with our own money.  Please refer to the Grocery Store analogy in the Nelson Nash's book Becoming Your Own Banker.  I can help explain the analogy further if you like.

If I can assist with anything I’ve explained here, please let me know.  You can reach me here: www.IBC.guru.

Thank you,

John

IBC Mailbag: How Safe Are Life Insurance Companies?

The following is an email I sent to a prospective client with nearly $500,000 in bank CD's who was requesting assurances on the safety of his money if he purchased a contract (life insurance or annuity).

I’ve attached an article I’d like you to read about the solvency of the Life Insurance industry.  (Here's the link:  https://bit.ly/LMR-Report-How_Safe_Our_Life_Insurance_Companies)

Regarding the FDIC, it has an interesting history if you study it.  It was created during the Great Depression to alleviate people’s fear for a “run on the bank”.  Banks don’t keep the money you deposit in a vault.  They lend it out right away to earn interest.  Furthermore, banks have the ability to create money out of thin air.  This is called Fractional Reserve Banking.  Banks basically keep no more than 10% of your money on deposit, lend the rest, and thru Fractional Reserve Banking can even create more money out of think based on your deposit.  (Sidenote: due to the pandemic the Federal Reserve has actually lowered bank reserves to 0% meaning they don’t have keep any of our deposits on reserve!)

Think of how mortgages are created.  Banks don’t actually have the money but a signature on a mortgage note creates that money out of thin air.  Then people pay interest to the banks on money that has never existed before.   This is the true definition of inflation (the creation of new money).  Most people confuse inflation with the price of things but that’s actually the end effect when there is too much money in the system which forces prices up over time. 

So FDIC is a government created agency to backstop banks in the event there is a run on the bank panic.  However, the FDIC is actually insolvent.  It has maybe only a $100 billion in assets and this amount insures over $10 trillion in bank accounts across the US.  That said, the government could have the Federal Reserve print more money for the FDIC to bailout people’s bank accounts so there is that.  But for assurances, think about a bankrupt government with an agency (FDIC) that does actually have enough assets to provide a full reserve (that is restore all your money in the event of a bank failure).

The point is that FDIC is sticker of confidence and FDIC doesn’t actually have the money.  The government could make a person’s account whole but if it actually came to that, the money would not be worth as much because of the mass inflation it would cause with all the money printing.  On the positive, people trust FDIC and government to back up a failed bank system and that’s a good thing.  Otherwise, everyone would be running to get their money out of the banks and that would be a very bad thing for the economy.  So it works but it’s built on a very flimsy premise of trust. 

You can read more about how Fractional Reserve Banking works by reading a book called The Creature From Jekyll Island.  Great book.  You can find a link to the book on my website here:  https://jlmwealthstrategies.com/recommended-books/

The life insurance industry in comparison puts the banking industry to shame because the life insurance industry operates as a Full Reserve system.

By law, all life insurance companies in the United States must maintain 100% solvency (more assets than liabilities) at all times.  Industry average per life insurance company is 105%.  That means if every life insurance company had to pay off what’s owed, it would still have money left over to continue business operations. 

Also, life insurance companies cannot create money out of thin air.  They are inherently a safer place for money because of this but because people don’t know how the life insurance industry is regulated by law to be a full reserve system, people don’t think of a life insurance industry as a place to park money when it absolutely should.

Since 100% solvency is required by law for life insurance companies to operate, there is no federal safety net like FDIC required for life insurance companies.  In fact, no one who has ever purchased an annuity has ever lost a dime.  That is a fact the life insurance industry goes to great lengths to ensure because the life insurance business is based on promises to pay claims and benefits.

All that said, each life insurance company has a state safety net of minimally $100,000 and as much as $300,000 that works just like FDIC does for banks.  Life insurance companies are regulated at the state level which is why the government safety net is determined by the state you live in.  When you purchase an annuity, you instantly have this safety net guarantee.

Hopefully this gives you some food for thought.  I’ve included an article from Forbes which discuss the safety of the life insurance industry here:  https://bit.ly/Life-Insurance-Safety

Please let me know if you have any questions about assurances or any other topic I can help answer.  You can reach me at www.IBC.guru.

Thank you,

John

Infinite Banking for your Kids

How would you like to help prepare and secure your child’s financial future for all stages of their life including college and all the milestone that follow? 

Not ever having to worry about whether your child will be beholden to banks for massive student loans, crippling credit card debt, or any other type of bank debt?

Instead you could give your child the ultimate financial gift. 

Put them in driver’s seat so they can re-write the financial rules to escape the bank-controlled money system that plagues families from one generation to the next.

It’s the so-called “Rat Race” for a reason. 

But it doesn’t have to be your child’s financial destiny. 

The truth is our kids are destined to follow the same financial path we do. 

If you borrow money from a bank from one car purchase to the next, finance your home from mortgage to the next, contribute to a 401k plan praying the stock market can consistently perform so you can finally retire (March 2020 has seen the market crash 25% because of the Covid19 crisis!), I’m going to tell you something that deep down you probably already know. 

You’re saving money in the wrong place! 

Worse yet, your kids will adopt the same or similar money habits from you when they become adults.

Undoubtably, you're a proud parent who wants the best for your kids.  Why pass on a lifetime of financial insecurity?

The challenge Middle Class America has is not knowing what we can do differently for our kids instead of the traditional options… like bank savings accounts and 529 Accounts.  These savings options are mediocre at best.

The big question is: how can you give your child the best head start in life so they can avoid repeating the same financial blunders you've made?  Yes, you!  We all have to own our mistakes in life so let's keep it real.

What I’m going to share with you will help you give your child access to a tax-free reservoir of wealth they can use over and over and over again…at any point in life! 

Not only can it help pay for college but for ALL THE MILESTONES in their life. 

From buying their first car, their first home, start or buy a business, the opportunities they'll be able to take advantage of is unlimited.  That's the power of IBC.  It puts those who implement the strategy in the position to be "Master & Commander" (great movie by the way) of their financial ship!

And IBC will even be there to providing TAX-FREE income in retirement, too.

It’s been called “the Swiss Army Knife of Financial Planning” because of all its uses. 

I’ve even heard the Infinite Banking Concept® referred to as “the black box secret for the ultra-wealthy” because affluent families use it TO HAVE ACCESS to cash reserves WHENEVER NEEDED and FOR ANY PURPOSE.  Plus money kept in these accounts allow families to transfer wealth from one generation to the next.

It's the ultimate wealth building secret

And for kids, the power of time and uninterrupted compounding growth is the perfect recipe to help them navigate their entire financial life. 

I call it the “Junior Estate Builder” and this plan is so simple you’ll be surprised to learn it’s worked for over 150+ years secured by the safest financial industry in the world.

It’s where I put my kid’s savings because I know it will be there for every big event in their life and I invite you to do the same for your children.

In the next few minutes I’m going to share how you can give your child the best financial tool to navigate their life. 

  

This simple, proven financial strategy is so flexible it can be used for any purpose no questions asked. 

Imagine your child having a place to grow wealth without ever experiencing market losses and economic downturns, political uncertainty and social upheaval, or any global event that cut an asset in half without warning.  

With the Junior Estate Builder, every year is a good year

I know it sounds too good to be true but it does exist and it's even written into the IRS tax code.  It just happens to have the worse name ever which is why I choose to call it the "Junior Estate Builder".

With this strategy, your child will no longer be beholden to banks for loans.  No more worrying about getting dinged on their FICO scores, and having to verify income or employment will be a thing of the past.

I can tell you it’s such a peaceful existence to never having to deal with bank loans, high interest rates, and onerous fees. 

Then consider what your child will do for retirement.  401k plans were never meant to be the primary source for income in retirement.  They are fundamentally flawed plans.  Think about it.

Money in a 401k plan is tied up for decades.  Early access is penalized and taxed.  

The only option for growth comes with risky and complicated market-based options with many hidden fees.  In truth, these plans serve Wall Street and the government better than they will for your child. 

Wall Street locks in the revenue for decades with no performance guarantees in return, then the IRS takes a sizeable portion in taxes every year for life. 

Is this really a good plan?  Is it really the best you can do?

It only seems that way if it's all you know!

Well, most parents only know about 529 Accounts too, and like 401k plans, these are severely flawed as well.  

529 Accounts put money at risk like 401k plans, can be used for only college expenses, and once spent will never provide any additional value or benefit to your child... EVER!  

In short, 529 Accounts are a risky, single purpose strategy with no additional value past college. 

The greatest benefit to the Junior Estate Builder is how it can be used to help pay for college, but more importantly, it can be used as a private banking system to accumulate long-term wealth during your child's life.

Imagine a multi-use strategy where your kids can re-use the money over and over again to acquire assets like real estate, or start a business, or perhaps buy an existing business so they can be their own boss.

They can also use the money you save for them to finance all the cars they'll ever own, maybe even put their own kids (your grandkids!) thru college...

Ultimately, it will even provide tax-free income in retirement.

Remember when I mentioned that the Junior Estate Builder is the “Swiss Army Knife” of financial planning?  This is a versatile, flexible, and predictable money system unlike the traditional bank and Wall Street system that holds you captive with your own money.

The sad truth is that traditional financial planning amounts to life-long financial servitude to banks and Wall Street because those institutions control your largest assets.  Congress writes the laws and changes the rules all the time.

Does it make sense to be penalized for early access and eventually get taxed on every dollar withdrawn in 401k/IRA accounts?  These plans are designed more for our government's benefit (great source of annual revenue) and the average American accepts it blindly because “it’s what everybody does!”

And this bank/Wall Street monopolized money system keeps you from discovering the truth about this strategy which hides in plain sight waiting for you to discover it.

It's the secret traditional banks and Wall Street hope you never learn about.

And keeping you in the dark is the best way to ensure your child will learn the same money habits you have now which keep you and your kids tied to banks and Wall Street in perpuity.

This is the financial destiny your child will inherit from you but the strategy sessions I offer will help you and your child change the course of your financial future by getting your child started on a path that puts them in the financial driver’s seat during their lifetime.

As a parent I know you have the best intentions  

I have no doubt your intentions for your child are no different than my parents had for me.

They did what they thought was best for me as a child and most families still do something similar.

For me, it was one those passport savings account books that are now a relic of the past, especially with interest rates at 0% these days! 

Back when I was growing up interest rates were much higher than they are now, so it was pretty cool to see the money my savings account grow at 6-8% each year during the 80’s. 

My parents were dutiful savers and thankfully that discipline certainly rubbed off on me.

Problem is despite my parents work ethic and discipline to save as much as they could for me, they chose accounts that conditioned me at an early age to think of banks as trusted institutions.

The de facto place to always save money.  How was I to ever learn otherwise?  I have a feeling you can relate.

Unfortunately, I had no Rich Dad or wealthy uncle to help me learn about money.
 

For this reason I went to work in the financial services industry after college.  Fast forward 21 years and I’ve tried just about every financial vehicle that exists. 

And of the places I’ve put money, there has only been one strategy and asset class that has worked like clockwork each year.  

This strategy has given me access to money tax-free to deal with financial curve balls as well as financial opportunities (the ability to purchase multiple homes, rental properties, an apartment complex, precious metals, you name it), and do so without ever interrupting the foundational portion of my net worth.  

I stopped contributing after-tax money to mutual funds that left me susceptible to tax consequences each year, including years when I lost money in the market. 

No more maxing out my 401k’s/IRA’s where I was putting my money in financial prison for 3 to 4 decades. 

I even stopped directing money to my kids 529 Accounts.

The more I realized how beneficial this strategy was for me, the more I thought how I should be setting up my kids with the same strategy for when they come of age.

The traditional advice of using 529 Accounts just didn’t make much sense compared to the alternative I had discovered for myself back in 2007.

What really drove home the point for me was my experience as an advisor and seeing 529 College Savings Accounts take massive hits when the market corrected from 2007 to 2009.

It wasn’t just 401k retirement plans that suffered during the last big recession, kids with their 529 accounts, especially those about to go off to college suffered as well.  We are witnessing it now again with the Covid-19 pandemic.

My experience as an advisor also helped me learn the other downside to 529 Accounts which is that not every child goes on to college. 

Money in 529 accounts are taxed and penalized on the earnings if not used for educational purposes.  No such rules or restrictions on a Junior Estate Builder plan.

This was the icing on the cake for me.  No 529 Accounts.  Instead I would set my kids up what I now call the Junior Estate Builder.

I’d give my kids the freedom of choice and direction in life without ever being hamstrung by banks, Wall Street, or even Congress. 

The truth about money is this:

The only fix is taking matters into your hands  

You cannot continue to rely on banks, Wall Street and Congress created plans to create the future you desire.

You have to OWN AND CONTROL your future and you have to teach your kids how to OWN AND CONTROL their future as well.

The Junior Estate Builder gives you the ownership and control with your own “privatized banking system” and it's actually quite simple.

Through the use private dividend-paying Whole Life contracts structured for maximum cash values, I create and OWN the pool of money I use to finance my cars, homes, make investments, pay my taxes… and yes, even to supplement my future income in retirement TAX-FREE.   

All of it is accomplished without ever needing to finance (borrow money from a bank having to agree to their terms), relying on Wall Street roller coaster, or lock up money in lobster traps (401k/IRAs) Congress creates to capture tax revenue each year when I retire until the day I day.

Everything it does for me, it will also do for my kids who each have their own contracts.

Quite simply, the Junior Estate Builder will do for my kids more than any 529 Account could ever do AND do better than any 401k plan could do.

The freedom of this strategy is going to teach them how to be financially independent from banks and Wall Street so they can live the life they aspire to without the financial obstacles that handcuff Middle Class America.

Most importantly, with the power of compounding interest and youth, my kids and yours will have the benefit of time to make even small amounts today go an extraordinaryly long way tomorrow!

Each of my 3 kids have their own Junior Estate Builder.  It’s where I direct their savings and each year their accounts grow larger and larger, just like the adult versions I have for myself and my wife where between the two of us, we have 8 properly designed IBC® Whole Life contracts and counting.  Including my kids contracts, our family has 11 Infinite Banking designed Whole Life policies we direct money to each year.

Think of that for a moment.

Instead letting banks and Wall Street controlling our wealth, my family has total control of a growing pool of money every single year that we can use for any purpose.  

Two simple reasons why this works so well:

1. These are private placed contracts backed by mutually owned (shares are not traded publicly) life insurance institutions that have paid dividends for 150+ years consecutively, even thru the Great Depression. 

2.  These plans are an uncorrelated asset class meaning it has no connection whatsoever to the stock market so will never suffer a market drop.

In fact, unlike Wall Street,  these financial institutions put their own skin in the game by guaranteeing a minimum amount of growth each year no matter what happens in the economy. 

I have the ultimate peace of mind knowing the money I put away from my kids will always be there for them.

I especially love that my kids' financial plan is now all-inclusive for any direction they choose to go as adults. 

Imagine the financial freedom you could be giving your kids where they have the resources to own cars, buy a house, start or invest in a business without the need to ask a bank for financial assistance. 

Attending college is an important milestone but as a parent I really believe we need to look beyond transitioning our kids from high school to college. 

Let’s face it, these days it gets harder and harder to get ahead. 

One thing that often goes overlooked is that the better prepared our kids are to transition to adulthood, the less likely we will have to support them financially in their 20’s, even their 30’s.

You’ve probably heard college graduates are returning to live their parents more than ever these days.

Marriage, having kids, and buying their first homes are being delayed later and later these days.

The number one reason is because they don’t have the financial resources to step out on their own.   

And the results have been proven to work over and over and over again.

So you may be wondering, if this is so great, why haven’t I heard of the Junior Estate Builder?

Now in the financial services business you probably realize Wall Street and Banks will do anything to manage your money. 

They’ve monopolized  401k plans and 529 Accounts to the point all financial recommendations narrowly focus only on stock market-based portfolios. 

For Middle Class America, these are the choices talked about.

That’s the biggest reason why the Junior Estate Builder is the best financial secret hiding in plain sight.

It’s not a Bank and Wall Street created product or service.  Quite simply, they can’t, don’t, or won’t recommend it because it directs money outside of their control!  Remember, it's a very specific type of dividend-paying Whole Life policy.  Furthermore, it has to be structured just right to avoid becoming taxable later in life.

By now you should know when money is locked into 401k/IRA plans, that money becomes tied up for life! 

When the need for money arises, where must a family turn if they are prohibited from accessing their own the largest asset they own?

Middle Class America is forced to borrow money from banks, of course!  They refinance their home if possible or rack up sizeable credit card debt that will take years to pay off.

It’s a system designed with purpose to keep you on that Bank/Wall Street treadmill.

And unless you do something different for your kids, this treadmill is all your kids will likely ever know!

But it doesn’t have to be.

You now have a choice to take action.

You can take the next steps to help your kids avoid the same financial pitfalls.

I’ve made getting started so simple and easy for my clients, that way your kids don’t have to be another financial statistic who don’t have a rainy day fund or have enough to retire on when they are adults. 

The best part? 

You will know down to the dollar and year, how your child’s plan will perform, you will finally have the missing piece that moves your child’s financial life forward from one milestone to the next because they will have access to money tax-free when and where they need it. 

To setup the Junior Estate Builder system correctly, you must be able to do 3 things:

1.  You have to be able to think long-term.  This is not a get rich quick scheme.

Remember, saving for college is one milestone but your child will have many more milestones ahead of them.  Give them the resources to prosper at every stage of their life.

2.  You have to have the financial discipline to save money consistently.  $100 a month is the minimum.  If your budget allows for more, you can add more.

3.  Put the plan on auto-pilot.  It won’t require any luck, skill, or guesswork on your part to be successful because the contract is has guarantees, flexibility, and access to cash whenever it's needed.

If you can do these 3 simple things, you will ensure your child the ability to take advantage of any opportunity life presents them.

OR...you can continue doing what you’re currently doing for your kids hoping the plan works and in the case of 529 Accounts, hope it’s utilized for college. 

I have no doubt your kids will be grateful for any amount put away for their future. 

I know I was grateful for what my parents saved for me, but if you’re the type of parent that really wants to give your kids an edge financially, you owe it to your child to see how this plan can work for them.

Here is the next step to take:

Visit my calendar and request a strategy session here:  www.IBC.guru

Thank you,

John Montoya

Here’s Why You Should Only Work with an Infinite Banking Authorized Practitioner

When you need to prepare your taxes, you go to your tax professional.

When you set up your living trust, you go to an estate planning attorney.

When you want to buy or sell a property, you go to a real estate professional.

Foot issues?  See a podiatrist.  Is your baby is sick?  Go to a pediatrician.  Kitchen remodel?  Hire a contractor that specializes in kitchens.  And on and on we can go.

If this sounds like common sense, it’s because it is.  The point is we seek out specialists in their field when we have specific goals we want to accomplish.  It’s the best way to assure that we get what want-- the best advice from experienced professionals.

When it comes to the Infinite Banking strategy, there are specialists across the United States who have completed the necessary training and been approved by the Nelson Nash Institute to teach and implement the Infinite Banking strategy properly.  You can find an authorized practitioner here:  https://infinitebanking.org/finder/

Here is why you should only speak to an IBC Authorized Advisor:

Whole Life insurance is a financial product.  Infinite Banking is a financial strategy.

There’s no end to the amount of incomplete information about life insurance on the internet.  

There are many life insurance options and no one size fits all.  Anybody who tells you should only buy a certain type of life insurance product probably isn’t qualified to be giving advice in the first place or have a professional agenda to steer you to something only they can offer.

The best life insurance product is the one that accomplishes an individual’s goals and everybody’s situation and priorities are different.  If obtaining life insurance protection is your goal, you should work with a professional who can educate on the pro’s and con’s of all the different life insurance products available. 

Pretty simple.

Taking it a step further, if you are interested in learning more about Infinite Banking, it’s important to know Infinite Banking can be accomplished with different financial products but none as well as a participating Whole Life policy from a mutual life insurance company. 

Definition of product:  an article or substance that is manufactured or refined for sale.

Definition of strategy:  a plan of action or policy designed to achieve a major or overall aim.

If you want to incorporate Infinite Banking into your personal financial picture, then you want a strategy, not a product.  To that end, you want a specialist who knows the field better than the rest.

In working with an IBC authorized practitioner, you’ll be working with someone who practices the strategy and can speak about their personal experiences.  They should be able to tell you exactly how they’ve used the strategy to build wealth.  If they can’t do that, they have not fully implemented IBC. 

Furthermore, any advisor can speak about a Whole Life policy but most advisors don’t even own a Whole Life policy let alone practice Infinite Banking.  Owning and practicing Infinite Banking with a properly designed IBC Whole Life policy is a world of difference!

In addition to the specific Infinite Banking training they receive, all IBC authorized advisors must own their IBC designed policies in order to be certified practitioners by the Nelson Nash Institute. 

   

It’s worth mentioning that not all Whole Life policies are the same and certainly not up to the criteria needed to be used for Infinite Banking.

Example, people who buy final expense whole life policies technically have a whole life policy but this is far different policy from the type of whole life policy an IBC authorized advisor would use for Infinite Banking.  Final expenses have little to no cash value growth and no flexibility or collateral capacity to use for banking purposes.

Another example are Gerber baby policies.  These are technically Whole Life policies but they are non-participating policies which means they pay no dividends.  They also cannot be used for banking purposes. 

Switching gears, it pains me to say that there are advisors who advocate and teach Infinite Banking but are not Infinite Banking authorized advisors.  They have not been interviewed by the Nelson Nash Institute, passed the necessary curriculum and gone thru the mentoring program to be approved as an IBC authorized advisor.   They contribute nothing to the community of advisors who have committed to upholding the highest levels of integrity to the public who are asking for the Infinite Banking strategy.

All IBC authorized advisors take very seriously a code of ethics to structure and implement only the correct type of Whole Life policies for the Infinite Banking strategy.  It’s because advisors were using the Infinite Banking name and peddling different recommendations that Nelson Nash created what was first called the Infinite Banking Institute, later changed to the Nelson Nash Institute by the board of directors to honor Nelson and his legacy.

My advice:  work with an IBC authorized advisor who is trained and vetted versus those who fail to meet the requirements and can potentially put you at risk by recommending policies that are not right for the IBC strategy. 

If an advisor is promoting IBC but is not a verified advisor on the Nelson Nash Institute website, you should ask him/her why that is.   

Action Plan:  3 Steps

1.      Connect with an IBC authorized advisor.  Get a high level overview and learn the basics of the strategy.  If it makes sense logically, request a customized plan.

2.      Complete a financial analysis with your IBC authorized advisor.

3.      Schedule an online or in-person appointment to review your IBC recommendations.  If the plan makes sense for you, start the underwriting process to implement. 

John A. Montoya

www.IBC.guru

JLM Wealth Strategies, Inc.

IBC® Authorized Practitioner

CA Life#0C42222

 

IBC - Which is Better? Direct vs. Non-Direct Dividends ("YOU'RE MAJORING IN THE MINORS!")

Let's start by getting a couple things out of the way when it comes to dividends on a participating Whole Life policy:

1.  You have growing cash value (guaranteed interest and non-guaranteed dividends that become guaranteed once declared) when loans are taken.

2.  One option is not necessarily better than the other.  That said, someone trying to sell you a policy might try to persuade you otherwise for their own purpose (they might only work with one type of company).  

3.  Infinite Banking Authorized Practitioners are (or at least should have been trained to be) completely agnostic.  They shouldn't favor one over the other for reasons explained below.

What follows below is a deeper dive into the world of Whole Life dividends to help further your Infinite Banking (aka IBC) knowledge.  

-----

There are two types of dividends you can get in the Whole Life world. 

1. Direct Recognition Dividend
2. Non-Direct Recognition Dividend

From a marketing point of view, advisors will “sell” non-direct as the best option because dividends are unaffected by loans. 

However, this is a half-truth. 

There is no free lunch which we all know to be true in life.  Same lesson applies here with direct vs non-direct.  If a life insurance is paying the same dividend regardless of whether a person requests a loan, that means there is something else going on. 

Here is the other half for the full picture on non-direct dividends.  Life insurance companies that pay a non-direct dividend pay out lower dividends to everybody to offset the cost of borrowing from the general fund of the life insurance company for those who do take loans.   

Essentially, those who do not take policy loans are subsidizing those that do.

So the question becomes would you rather have the potential for the highest dividend you can get every year?  Or would you be happy with a lower but level dividend for all years?  With a direct recognition dividend, you have the highest potential for dividends without having to subsidize other people who may or may not take policy loans.  You still get declared dividends when loans are outstanding.   They are not taken away from you because you have a loan.  However, you will get a reduced portion of the dividend if a loan is taken.

Back in 2007 I emailed Nelson Nash, author and creator of Becoming Your Own Banker (the pioneer of IBC) and he surprised me by calling me out of the blue.  He was already well into his 70’s at that time.  I wasn’t expecting an email back let alone a phone call.  I had emailed him about direct vs. non-direct because I wanted to know which was better for my own situation before I started recommending a particular choice to my clients.

The first thing he said to me after introducing himself was to thank me for reading his book and for  helping him to spread his message about IBC by being a professional in the industry.  Then in his thick and sage Alabama accent which I recognized as Nelson’s right away even though we’d never spoken before (no introduction needed!), he said something I have never forgotten.

He said in that kind, old man Alabama drawl, “Now son, you’re majoring in the minors!”

What a thing to say!  If he didn't already have my utmost attention, he surely had it then.

Now you have to know Nelson had a certain way of teaching fundamental truths.  If you’ve read Becoming Your Own Banker (it’s worth re-reading from time to time), you know he uses analogies and euphemisms quite a bit to explain important points that should not be taken for granted.  

That's exactly what he did with me over the phone at 7:53am PST while I was packing my little ones into the car for a ride to their pre-school.  It instantly hit me what he was saying and has stuck with me ever since.

Direct vs. Non-direct ultimately doesn’t matter in the big picture of IBC.  

The whole point of Infinite Banking is to own and control a system of money that you are constantly directing your flow of money into so you can eliminate the middle man (traditional banks).  The freedom of control and use of money for any purpose while enjoying all the perks of an ultra-safe and ultra-liquid cashflow management system where you are guaranteed to have uninterrupted (tax-free even!) growth and access for life is the main point.  

Banks become super wealthy because they rob of us this freedom by fooling us into believing we need them.  We don't!  They are the middle man in the money game that seeks to control the flow of your money for their profit.  

He went on to explain to me that all I need to do is have “a good administrator (life insurance company) to handle administration and paperwork.”  The dividends will be there as they have been for 150+ years and counting. 

So to return to the discussion of direct vs non-direction and understanding the difference… while it may be good to know (especially if the only thing learned is a half-truth), it ultimately isn’t the reason why you choose to go with one life insurance company or another. 

Getting back to Nelson’s bigger picture, if a person is really doing IBC correctly, they are going to have multiple policies (with different companies – direct and non-direct dividends) over time which will eventually incorporate their total cashflow.   

It’s not an either/or proposition on which is better because you are going to receive dividends whether you have a loan outstanding or not.  It essentially comes down to: 

Are you okay subsidizing yourself and others who take loans (non-direct) and therefore take a reduced dividend for all years or obtain the highest potential dividend based on your own loan borrowing and repayment schedule… 

But as Nelson reminded me years ago: don’t lose sight of the bigger picture ("don’t major in the minors!").

Nelson instructed everyone to do 4 things to achieve Becoming Your Own Banker:

1. Think long-term.
2. Don’t be afraid to capitalize (open a policy and max-fund a properly designed Whole Life policy).
3. Don’t steal the peas (repay your loans at a “higher interest rate” – another euphemism meaning re-capitalize quickly so have capital for your next opportunity).
4. Stop working with the middle man (i.e. traditional banks).

If you have more questions you'd like answered about Infinite Banking, let me know!  You can find me at www.IBC.guru.

Thank you,

John A. Montoya

JLM Wealth Strategies, Inc.

Bank On Yourself® Authorized Advisor

IBC® Authorized Practitioner

CA Life#0C42222

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