STRATEGY
WHOLE LIFE
Be Your Own BankerWhile Creating Generational Wealth
PART ONE OF A SERIES ON THE MINDSET OF INFINITE BANKING
by Gary Pinkerton, a Think Realty Resident Expert
he need for financing in life is significant when it comes to
There is. It’s called Infinite Bank - ing, has been used by the wealthy for centuries and is just as simple. By using uniquely designed whole life insurance, infinite banking essentially allows you to become your own family bank. Your dollars earn uninterrupt - ed compound interest in a private, tax-advantaged account achieving several times current bank rates. You are able to use a life insur - ance company or a traditional bank’s money as a loan with terms and payback schedules you dictate—not dictated by the banker. There is no application process to manage and no credit score to evaluate. And since it is whole life insurance, you get the guaranteed added benefit of a tax-free death benefit to support your family and business in case of your untimely death. Infinite banking is simply storing cash in whole life insurance. It is a
mindset—a process and strategy to optimize how you finance every - thing in life. For most people, your need for financing in life is greater than a death benefit, so policies are uniquely designed to maximize cash value while still retaining substantial death benefit protection. Given the guarantees within this type of policy, your cash value only goes in one direction—up—while you have a built-in line of credit that collateralizes your cash value that is accessible whenever you need with terms that fit your situation. With the benefits of infinite or fam - ily banking as a backdrop, let’s see how savvy investors use the approach to finance all investments and capital expenses in their lives. Comparing Savers, Debtors and Wealth Maximizers. This system serves as your ultra-safe wealth foundation to fund all of life’s
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our purchases and investments, but the way in which you finance your purchases can have a serious impact on how you grow your wealth. Did you know there’s a tax-free way to finance your real estate investments without tying up your own cash? Everyone knows real estate is red hot right now. Whether you’re a buy-and-hold investor, a fix-and-flip professional or even a private lend- er, there are enormous real estate opportunities in this COVID-rebound economy. And using your own cash to fund the deals seems the easiest and obvious option, but it is not the best choice that sophisticated inves- tors make. What if there was a better way to access cash, with less risk, more liquidity and control, while creating generational wealth?
46 | think realty magazine :: august 2021
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