Infinite Banking 101

Perspective Shifters

Truth Tellers

Game Changers

Our mission:

Love is our foundation for God is love. Wealth is for all because He says so.

"If you borrow money with interest, you’ll end up serving the interests of your creditors...."

Proverbs 22:7

What is Infinite Banking?

Infinite banking is a concept created by R. Nelson Nash. It brings you through a process using the cash value in a life insurance policy rather than traditional bank accounts. It teaches you how to be more effective and efficient with your dollars. You become a part owner in the underlying mutual insurance company, which are some of the highest rated and financially stable companies in the world.

Did you know that during the Great Depression it’s documented that these mutual insurance companies bailed out failing banks long before the FDIC even existed?

People have been pouring money into cash value life insurance for decades. The insurance industry and the products have changed, but this is not a new concept.  There are many people who come against this strategy, but they do so because they're coming to their conclusion based off of half-truths or handed down information that simply isn’t true.

There's a right way of structuring this concept, and a wrong way.

Most financial professionals don't possess the 'know-how' to structure it, or favor their way of doing things so they come against it. It takes an understanding of not just the process, but also in-depth understanding of the product itself. We will discuss the process and the product used in more detail in this section.

How do banks function?

Banks have a profit margin for every dollar that is deposited into their bank.

*For example, a bank may make 10 cents on each dollar deposited. They also make a profit on the money they lend out, which is a huge part in how they make money.

*For example, you need a new car so you contact your bank to get a loan, in which they charge you an interest rate to borrow against their funds.

So they make a profit on money coming in and going out.

The key is to think like a bank.

When you want to make a deposit in order to save a portion of money, deposit it somewhere where you make a profit. When you need money, you go to where you've been making deposits and borrow against your own money. By doing this, you have all the control of your money. When you need some of it for whatever reason, you take out a loan against yourself and the balance remains untouched and continues to earn compound interest.

Example:

You have $50,000 in cash in the infinite banking strategy and you would like to invest in tax deed property for $7,500 (real estate). You take out a loan against your $50,000 cash balance for $7,500 at a 5% loan rate. You acquire the property for $7,500 and sell it to a contractor that buys ugly homes for $39,000.

You then subtract the original cost of $7,500 plus 5% interest, closing cost of 10% ($3,900) and make a profit of approximately $27,000 over 30 days.

The $50,000 remains in the account and continues to earn compound interest at 5% (or more) while you made an additional $27,000 on the side.

Alternatively

You have $50,000 in cash in a traditional savings account and you would like to invest in tax deed property for $7,500 (real estate). You withdraw $7,500 from your savings account and are left with $42,500. The same transaction occurs and you make a profit of approximately $27,000 over 30 days.

The difference is when you withdrew the $7,500 it lowered your balance and you're now earning interest on a lower amount at a lower rate of 4% compound interest.

Since you made a withdraw and did not have the option to take a loan against yourself, that $7,500 lost it's ability to earn interest for you in the savings account for 30 days.

Let me ask you a question, do you want to be an owner or a consumer?

Owners take full responsibility for their money, decisions, and the outcomes that result from them. They have a clear vision for the future and strategies to get there. They have a willingness to take calculated risks and the ability to make informed decisions, and the flexibility to adapt to changing circumstances.

While being a consumer is a natural part of life, being just a consumer without saving can lead to financial ruin. Most consumers, we like to call them 'spenders', overconsume and end up finding themselves in a sea of debt and financial stress. There's no clear vision for future so spending comes easy. They've heard they need to save and invest, and know one day they'll stop working but take little to no action. They can't see they're on the way to financial disaster.

Okay, I choose to be an owner. Now what?

Begin to learn about money and how it flows in our systems. Learn the money game and play it well. Read books about money, find money influencers to follow (check them out first) and find a financial professional that is focused on making you money, not just managing your money. They should align with your goals and have a clear plan, that you understand, to get you there.

Re'nita has been an asset to my businesses and for my families future. She truly cares about my goals and needs. As an entrepreneur my biggest concern is retirement. She presented a few options that fit all my needs; with her expertise we decided on the financial plan that gave me the security I needed. She even included my disabled parent to my long term financial planning. She has an amazing team! Everything was presented to me in a timely manner with check ins along the way. Now I can focus on continuing to build my portfolio. Thank you Re’nita!

CASANDRA WILLIAMS

Re'nita is someone who automatically brings out the best in others. She has a disarming calm and real approach which made me - from the first time I met her - felt safe. I think the thing that is most fascinating about Re'nita is her purpose driven passion. It is infectious and I look forward to more collaborations with her in the near future!

If you are considering working with her - do it and hurry! Get her before someone else snatches her up.

JULIE BRAUN

Re'nita LaRae financial was a perfect fit for me and my investment portfolio needs. I have worked with multiple financial advisors and always felt that they didn’t have my best intention at heart. I started working with Re'nita LaRae and found myself feeling confident that she was looking at a product that completely fitted my needs and wants for the current needs and the future goals. As a woman it’s important to feel that you have been heard and respected with these kind of transactions. She did both. The product she set me up with is proven to be successful in the desire of what I was looking to accomplish. I highly recommend her as your financial advisor.

DEBORAH ORLANDINI