Maybe you are someone who has been extremely disciplined with your finances and you’re thinking that implementing the Infinite Banking strategy won’t better your situation. Most likely you are absolutely right. In fact infinite banking could be the furthest thing from a solution for you and your situation. But since you’re already here let me explain why many people tend to like it. I want to explain why running investment opportunities you have through your private banking system will only make things better.
Lets say you’ve accumulated $100,000. Now you want to go out and buy some gold or a piece of real estate. Normally you would have saved that money in something like a mutual fund or a savings account but by having that money in your banking system you create a tax advantage that normally you would miss out on.
Here’s how an infinite banker would buy that gold or real estate.
1. Accumulate the required amount of money inside their banking system. (Again this strategy is not for you if you have no desire in a long term approach)
2. take a loan from their banking system in order to purchase the investment.
3. Using the return on investment they repay the loan plus interest.
4. Have the ability to write off the interest they are paying back.
So not only will they be able to replenish their banking system but they will be able to save on taxes by writing off the interest they are paying on the loan. If you’re like me you want to get as much information as you can about something without talking to anyone, because you think you’re going to have to sit through a sales pitch of some sort. Well I hate to break it to you but you will need some help from a living, breathing human to know for sure if the concept fits your situation.