Infinite Banking a.k.a. Be your own Bank a.k.a. Bank of You

jcpb72

jcpb72

New Member
Hi Guys,

I came across a concept called "Infinite Banking", which was invited by R. Nelson Nash of http://infinitebanking.org/

In a nutshell, you use a Dividend Paying Permanent Life Insurance (not Term Insurance ) as the Cash Storage Vehicle, not sure if it's the same as a SMSF or is an Alternative to Super

Off the top of my head...below is a rough outline of some the Benefits:

1) Cash Accumilation Vehicle
2) Tax-Deferred Growth (Pays a Dividend)
3) Tax-Free Withdraws
4) Can be used as Collateral for a Loan
5) Fund an Estate (Death Benifit)
6) Money is Protected from Creditors (Asset Protection)
7) Is Liquid
8) No Constrainants on the Liquidity (As long is the $ Amount is in there)
9) Safety

There is heaps of info and brokers/advisors in the USA, but nothing in Australia.....

So my question.......

Is there anybody in Australia that provides this service, or can point me in the right direction?

Below are some Links on the Subject:

http://www.youtube.com/user/ParadigmLife?feature=watch

http://www.youtube.com/playlist?list=PLF74DAFE19B55103F&feature=plcp

http://itunes.apple.com/au/podcast/infinite-banking-concept-becoming/id404013119

[youtube]http://www.youtube.com/watch?v=M6l1pFnaCkE[/youtube]

[youtube]http://www.youtube.com/watch?v=13bAUnVX1H8[/youtube]

EDIT:

I think i may have just found the answer to my own question???

Types of Permanent Insurance to go for are either the Whole Life Insurance, Variable Life Insurance or Universal Life Insurance, depending on your needs and Level of Risk.

http://www.lifeinsurancequotes.com.au/types-of-permanent-life-insurance.html

http://www.lifeinsurancefinder.com....ation/life-insurance-cover-–-what’s-included/

http://www.lifeinsurance.net.au/what-type-of-insurance-is-best-for-me/
 
Interesting. The idea has some merits.

One problem, this 'Infinite Banking' system completely ignores the counterparty risk of the insurance issuer. Remember AIG circa late 2008?

If you built your 'infinite banking' system into an overexposed insurance company, it'd be like a cockroach motel. "Your money checks in, but it doesn't check out."

Even if you know your insurance counter-party is going to suffer liquidity problems, you can't just write a transfer and send it somewhere safe(r). Your capital is potentially trapped on a sinking ship.

Granted, you're exposed to the same counterparty risk with a vanilla bank account.
 
Roswell Crash Survivor said:
Interesting. The idea has some merits.

One problem, this 'Infinite Banking' system completely ignores the counterparty risk of the insurance issuer. Remember AIG circa late 2008?

If you built your 'infinite banking' system into an overexposed insurance company, it'd be like a cockroach motel. "Your money checks in, but it doesn't

check out."

Even if you know your insurance counter-party is going to suffer liquidity problems, you can't just write a transfer and send it somewhere safe(r). Your

capital is potentially trapped on a sinking ship.

Granted, you're exposed to the same counterparty risk with a vanilla bank account.
Click to expand...



I hear you, but how would you minimize that Risk? as you say the Banks are in the same boat, you don't have to go far....the events 2008 to see that.

I guess as with all things of this nature, you need to do your own due diligence....

As for me that's what I'm doing now, and thought there might be other Aussies who were asking the same questions....



As for the Links been a "security threat" they worked fine for me and didn't generate any alerts at home or at work, it could be that your software is generated a False Positive...

But in saying that, if you're still in doubt, you can scan the site links with VirusTotal, they have a URL Scanner that scans a site's address / links with 29 Anti-Virus scanners, which should cover it.

I use the File Scanner to scan all my files (files upto 32MB) that i get off the Net......that one has 42 A-V Scanners

The URL Scanner - https://www.virustotal.com/#url The File Scanner - https://www.virustotal.com/#file



Hopefully I have answered your questions.......So I found out that R. Nelson Nash is into the Austrian School of Economics....Explains alot

Anyway found some PDFs for download for those that are keen for more info:



1 - "How Privatized Banking Really Works" 394 Pages

Skip to Part 3 - Page 281 - The Earlier chapters most Stackers should already know....E.g. Sound Money, Inflation, The Fed

http://consultingbyrpm.com/uploads/HPBRW.pdf



2 - "Infinite Banking How it Works" 6 Pages

http://www.choose-financial-freedom.com/support-files/infinite-banking-how-it-works-linde.pdf



I'm thinking of buying the "Becoming Your Own Banker" eBook from the http://infinitebanking.org site, will let you know what i think about it.

Hope This Helps
 
Hi Guys just a Quick Update....

I contacted all the Insurance Brokers that i Posted Earlier.......only got through to one of them .......no Joy

No local Aussie Insurance companies are Offering "Dividend Paying Whole Life Insurance" anymore

Because the broker got so many inquires......he mentioned, he'll try to find something that would cater....




Someone made the suggestion of contacting David from Infinite Banking, about contacts in Oz who trained in the Infinite Banking Concept, which i did earlier today, just waiting for response......For anybody interested his contact is:

http://infinitebanking.org/contact/


Also contacted Jim Ostler from Paradigm Life Insurance from the States, just trying to organize a Skype Session with him.
Jim's Contact details are:

Jim F. Ostler
Ph 1-800-870-8670 Ext. 200
Direct 801-335-9409
Fax 801-303-6892
jostler@paradigmlife.net
www.ParadigmLife.net




Also here is a list of Recommended Reading that I'm currently going thru that you might find helpful:

"Becoming Your Own Banker" R. Nelson Nash - Kindle Edition
http://www.amazon.com/Becoming-Your...9663&sr=8-2&keywords=Becoming+Your+Own+Banker


"How Privatized Banking Really Works" Carlos Lara, Robert Muphy, Ph.D.
http://www.amazon.com/How-Privatize...=sr_1_1?s=books&ie=UTF8&qid=1286381323&sr=1-1

Hope this helps.

J-C
 
I know this thread is old but was wondering if there is any update regarding implementing this concept here in Australia?

Thanks
 
Does anybody know any insurance companies selling "Whole Life Insurance" nowadays in Australia?
 
jcpb72 said:
Does anybody know any insurance companies selling "Whole Life Insurance" nowadays in Australia?
Click to expand...
never heard of insurance being sold for people above 70 to 100, that is 30 years without insurance
 
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