| There is a trend that was started by Nelson Nash | | | | this process of the Infinite Banking for the average Joe |
| about four decades ago and it is becoming very | | | | to Bank and finance his needs and projects as the |
| popular now a days thanks to the great marketing | | | | owner of his own bank. |
| work of Pamela Yellen and in lesser extent by many | | | | If you have applied the 4 points to come up with the |
| others like myself. Even though, we have not created | | | | right platform to set your own personal banking |
| near the storm she has, still we are very passionate | | | | system, I am pretty sure you did not come up with |
| and focused, we are telling anybody who wants to | | | | many. |
| listen about the Infinite Banking Concept. This concept | | | | Before I tell you about this unique platform to use for |
| is also referred to as the process to "Becoming your | | | | banking and finance, I have to say and repeat that the |
| own Banker", "Bank on Yourself", "Bank on your cash | | | | purpose of this process is the banking and financing of |
| value", "Be the Bank", etc. | | | | personal needs and projects. |
| A big part of this trend is also due to the present | | | | So if you were to set up a conventional bank, it would |
| economic situation the United States of America and | | | | take a lot of work, huge amounts of money, |
| most of the world is in. Millions of people have lost their | | | | government approval and a lot of patience. Setting up |
| wealth represented in stocks, mutual funds, 401k, IRA, | | | | a bank is a business endeavor; it takes time, money, |
| real estate and many other investments. People are | | | | work, effort, lobbying... Did I mention time, money, work, |
| confused, scared, paralyzed and looking for an answer | | | | effort, and lobbying? And you will not expect to be |
| to their predicament that the strategies which used to | | | | profitable in the first two, three, or five years. |
| work before are not working now and people do not | | | | It is a business, a very good business though, but any |
| trust that they will work in the future. | | | | business has an initial phase where the acquisition |
| People are hearing that the new norm is saving, that | | | | costs, the investment capital has to be absorbed in the |
| they have to go back to basics to find the way to | | | | operation of the business before there is any profit. |
| financial security. The truth is, if we would have stayed | | | | With that said, the platform that Nelson Nash and all his |
| within sound economics, without abusing of leverage, | | | | followers/students like me recommend, is a whole life |
| price to earnings ratios, price to cost of replacement | | | | insurance contract engineered to perform according to |
| ratio, common sense, and in many cases manipulation | | | | the Infinite Banking Concept, a contract with a mutual |
| and lack of honesty, we would be looking at a | | | | life insurance company. |
| different scenario. | | | | Why do we recommend this platform? It complies with |
| So let us get back to basics, sound economics and | | | | the four points named above and on top of that, it |
| savings to build our financial security; but let us use an | | | | provides us with life insurance. |
| efficient process to do that, and proceed to implement | | | | Let me tell you an example that might help you accept |
| our own personal banking system. | | | | the insurance component in this platform: French fries |
| What is banking? Wikipedia has a definition that | | | | are made from potatoes, and potatoes come with |
| involves government approval, capturing deposits from | | | | skin; a restaurant owner selling French fries will peel |
| other people, and very expensive start up cost. But | | | | the skin off of the potatoes and most likely discard the |
| banking, in its core, is the capitalization and creation of | | | | potato skins as garbage. The restaurant owner can |
| a pool of money, and the use of this money to finance | | | | turn the wasted potato skins into a benefit by finding a |
| a borrower's needs or projects at an interest, creating | | | | farmer to buy the potato skins to use as food for |
| a profit to keep and grow the pool of money. | | | | some of his animals. |
| Based on that core definition of banking, we could | | | | The purpose of the restaurant owner is to sell French |
| bank with many platforms, so to find the most efficient | | | | fries, and he cannot avoid the fact that the potatoes |
| one we should look for a minimum of 4 requirements: | | | | for his French fries come with skin. This is an added |
| Liquidity- It is important because we want easy and | | | | benefit for the restaurant owner that he cannot get rid |
| anytime access to the money. | | | | of; the potatoes come with the skin. |
| Security- We want to know that several years in the | | | | The fact that the most efficient platform to implement |
| future, the money we are working so hard to | | | | our own personal banking system comes with life |
| accumulate will not disappear. | | | | insurance, is a benefit we cannot get rid of. |
| Efficiency- We want the host of our money to pay us | | | | To set up your own personal banking system |
| a healthy interest so the value of our money can keep | | | | engineered to perform according to the Infinite Banking |
| up with inflation. | | | | Concept, contact an experienced Infinite Banking |
| Tax Friendly- We want to pay little or no tax at all in | | | | Adviser. There are many proponents out there using |
| the growth of our money. | | | | similar but not quite the right platform and the right set |
| As I mentioned at the beginning, Nelson Nash designed | | | | up for a successful personal banking system. |