How to Become Your Own Bank?

How to become your own bank? For just a second... Imagine this... What if you can become your own bank - paying yourself the interest? Instead of paying interest to a corporation or other people, why not pay YOURSELF the interest? Introducing... The Infinite Banking Concept. This concept has different names such as the IBC, accelerated retirement, Be your own Bank, Be Your Own Banker, etc... We have a SPECIAL guest that will join us to explain this strategy in GREAT detail!
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Alright, so how does this concept or strategy work? How do you become your own bank, pay yourself interest? So let's break it down...
1. This concept involves creating a Life Insurance Policy. Traditionally, individuals have used Whole Life Policy to overfund their cash value. By overfunding your cash value, you also have the option to be able to borrow against your cash value while part of your cash value is still growing in compound interest. .
2. Borrowing Against the Cash Value means that you'd have to pay yourself back the interest. It works similarly to borrowing against a 401(k) but the cool part about a Universal Index Policy is that there aren't any structured payments or terms of the debt against your cash value. Meaning, you don't have monthly payments or you don't have a set deadline as to when the debt needs to be paid off in full.
3. You can borrow against the cash value to pay off your mortgage, debt, student loans, etc. You can also borrow against the cash value for future real estate deals or simply to buy a new home. There are many real estate investors using the infinite banking concept to fund their own fix and flip projects, paying themselves interest, all awhile the cash value is still growing in compounding interest. Or... If you want to keep it plain & simple, you can use it to retire faster by simply making contributions to the cash value while growing it on compounding interest.
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--DISCLAIMER-- The suggestions, advice, and/or opinions that are given by Sam Kwak (The Kwak Brothers) are simply opinions. There are no guarantees of set outcomes. Listeners, guests, and attendees are advised to always consult with attorneys, accountants, and other licensed professionals when doing a real estate investment transaction. Listeners, guests, and attendees are to hold Sam Kwak, Novo Elite, Inc. and the Kwak Brothers brand harmless from any liabilities and claims. Not all deals will guarantee any profit or benefits. Listeners, guests, and attendees are to view and listen to all materials and contents furnished by the Kwak Brothers as a perspective based upon experience.

[@TheKwakBrothers]

Get more information about this strategy: ibcjumpstart.com/

[@KarloSalgado]

As an agent I’ve been doing this for years, and yes, it’s a fantastic idea and it works well if and only if the policy is structured properly. The policy has to be “max funded.” Meaning you want the least amount of life insurance for the amount of cash you are contributing. This way more money is going towards the cash value account and less money is going towards the cost of insurance and fees associated with the policy. Also, you want to ensure you understand the loan rates and how they work since there are both fixed and variable options and it’s critical to know the difference. Good video and good luck!

[@FengV88]

What do you mean "structured properly"? Is it just the low life insurance, for max amount I am tossing in? Is there more to it? I'm thinking, like 25k life insurance and tossing in all my money into it asap (like my imaginary salary of 500k annually).

[@KarloSalgado]

@@FengV88 That's exactly right. Every policy has a minimum and maximum. You want your policy to be structured in where what you put into it is considered the maximum amount. i.e if the you are contributing $25K per year then the Guideline Annual Premium should be $25K per year that way you ensure a "Max Funded" policy based on IRS guidelines and the money is still accessible 100% tax-free.

[@married-wit-childrenadog9249]

Thanks for the info!

[@mattanderson6672]

Thanks guys!! Really great information!

[@paulstutsman]

This video helped lead me to the Nelson Nash Institute where I leaned, am learning, how to "become my own banker". Pretty great concept that I wish I would have found a LONG time ago.

[@derekfox2993]

1 year later...how is the journey to becoming your own banker? Did you find Nelson Nash is the best place to begin or are there any other resources you can point me to for a beginner?

[@paulstutsman]

@@derekfox2993 The Journey is outstanding so far. This is my opinion only. The Infinite Banking Concept starts and ends with the NNI. Anything else is what he would have called noise.

[@TheKwakBrothers]

How do you see yourself using this strategy??? Real estate investing?? Pay off your debt?? Share & Comment down below!

[@Army_Of_Juan]

The Kwak Brothers I already have checked with few different insurances before. And the one that work the best for me it’s New York Life. Why? New York Life, has the best options for my current age and my end goals. New York Life, when I get to borrow money from the cash available for me, that money will still grow interest (not all life insurance company’s do that) For that reason I would go with them. Plus that I already applied to work with them and already have my life insurance license. As soon as the background check get back to them I should be able to promote this concept to people around me.

[@lindamora7]

Where's his contact info

[@Army_Of_Juan]

Linda Mora what state are you located?

[@RedRider1600]

Is there a limit to the amount for this Whole Life Insurance or Universal Index Policy? $1 million? $100 million? $1 Billion?

[@RedRider1600]

What if I sell my house for $300,000 and buy this whole life insurance or Universal Index Policy, borrow back $100,000 to buy a condo or RV to live in, and use the remaining $100,000 or $150,000 to invest in real estate, flipping houses, or whatever? Would there be tax consequences after the sale of my house if I roll the money over into life insurance?

[@FengV88]

Wow! I love your creative thinking!!!! Thanks for asking them!

[@Zumbamom]

IBC is great! It is long term so don’t think get rich or rich fast. The concept is fantastic. I have 3 policies and borrow and pay myself interest. I am glad I don’t have to borrow from a bank.

[@lizbaker5227]

Marcia Jennings..if you pay yourself interest..how do you keep track of it all. ?

[@candicegallego4067]

Who do you have your policies with?

[@michelleharris8583]

Great video easy to understand.

[@allthingsindexed9868]

would you be open to a conversation. Let me know, -Steve

[@williamstanley4960]

Very creative idea... I would consult an attorney about how to do your disclaimer in a short burst at the beginning so you do not feel the need to belabor the point throughout the video. Makes the flow better, and much easier on you guys, also! Great Video, and thanks!

[@peraltag23]

Brilliant!

[@allthingsindexed9868]

would you be open to having a further conversation? -Steve

[@JamesBond-pm2lo]

Can you tell me what kind of fee involved here? Nothing is free for sure. Insurance company has to make profit out of this.

[@toldu21]

Here is how, you create your own trust, you open a bank account for the trust and then put your asset in the trust, funds are in the trust, you create your own terms and conditions for a loan, use your own loan T AND Cs contract (make sure your t and c have Accept for value and promissory notes so you can set it off before the tax year) then you tax exempt because its a loan whalla!

[@FunkyFaulc]

This is a few years old so you might have figured it out, but two big problems with putting that full $100K into a policy is that 1) If it's a new policy you'd MEC it and lose the tax free access to cash if you stopped putting in any sort of premium in future years (but hey .... if you can do this and can keep doing it every year do it because in like 3-4 years you'll be making a sweet cash on cash return with your premiums alone). 2) You won't get 100% access to the cash right away but you could easily get 90%. There are insurance costs to start the policy and that's why you don't get 100% access to cash in the first few years. But wih the right policy design you should be getting your full premium back within 3-4 years and then over 100% of premium in years after that!

[@onlychildren857]

In a low interest environment like we have had and will continue to have this is a good alternative to a savings account

[@allthingsindexed9868]

It really isn't about the interest rate environment asn much as the ability to keep your money growing versus leaving your bank acct and then getting nothing on it once it leaves the acct -Steve

[@azianjz]

Great video, what kinda insurance policy offer the benefits u mention, whatever you put into it gets full access liquidity immediately? I believe it takes time for the cash value to build up, usually after the first year. I know products like high early cash value but not full 100%, please advise!

[@allthingsindexed9868]

would you be open to a conversation where we can discuss the options. -Steve

[@ljuan5000]

I don't know if I missed it. I saw where Steve said the money in the insurance account earns 3-6% but what about the loan? Interest free?

[@anthonysued]

I've just recently come accross this infinite banking concept, but I have also been considering the HELOC strategy to pay off my mortgage. How can these two strategies co-exist with each other?

[@bobjohnson5308]

Can anyone see the downsides of getting a whole life policy with the premiums being paid by an employer? I was offered this but it was a bit confusing. The advisor was talking about it serving as a transfer of ownership after a certain amount of years but part of my policy would go to current owner? Any info would be greatly appreciated!

[@dsmith7969]

Blessings

[@theexit3248]

What Life Insurance company do that? I’m interested

[@dustindement553]

I just came into a decent amount of money. And shortly after I came across this video in my KZbin feed. Is there anyway you might be able to help me understand this better? Right now I have all my money sitting in a money market account with low interest. I want to get into real estate. Buying/selling/renting. Can you help me understand this better so I can become my own bank essentially and have a high interest rate?

[@jmoney6652]

There’s gotta be a catch somewhere...great video my friend

[@alphazebra01]

The catch is you have to pay yourself back. Otherwise is just a basic lower-interest loan. You can let the death benefit pay the loan but doing that only allows to take out a loan against your policy once (until you have enough money built back over the top of the original amount you had at the time of the loan...but that can be years). If you pay your policy back, just as you would a bank loan, you save interest and you gain interest. So you're doubling the speed at which you can save.

[@allthingsindexed9868]

Loans are Loans and eventually need to be paid back so there is not catch. What you gain is the ability for your money to continue to grow in your acct while you still pay off debts, make purchases etc. Where as if you did this from your bank acct the money would be gone never to give you any future benefit ever again. Does that make sense? -Steve

[@richardnajera4064]

@@alphazebra01 how do you make money off of this since we are going to you to create this?

[@alphazebra01]

@@richardnajera4064 Insurance agents get a commission from the policies they write but never get any of your money. The insurance company pays the agent for the act of selling and doing for them what they aren't actively doing. Going out there and talking to the people. The money you amass in your whole life policy is yours, my friend. No one else's.

[@ignacioflores4666]

@@alphazebra01 No it is not yours at all, when you die guess who gets to keep it? Yeah that's right the insurance not your loved ones.

[@kirilllesnykh2166]

Can I buy a house using this strategy? How soon would I be able to buy a house if I just started a life insurance policy? And how do I know which life insurance is the right one?

[@LiliansGardens]

Good idea but your explanation ...I got it in the first two sentences and got confused by further explanations. I'm a money expert . Thanks

[@larryjordan7331]

Would this work with service members who have SGLI, could you barrow against that?

[@allthingsindexed9868]

Unfortunately you cannot borrow against your SGLI. SGLI is what is considered Term and has no value that you can borrow. With this strategy the life insurance is not a line of credit but allows you to build up your own cash inside the policy and loan against it without having to withdraw, thus leaving the money in your acc to continue to grow, does that make sense? -Steve

[@lindamora7]

and when you say borrow your money are you referring to the actual amount of the life policy or the amount one has paid already monthly?

[@alphazebra01]

You can borrow up to 90% of the cash value of your policy. Varies according to company. A mutual whole life policy will pay you interest and dividends yearly. That, plus your policy premium grows and compounds over time. You can borrow against it since it is paid collateral. If you don't repay, it's already covered in your death benefit. The loan can never be greater than the cash value. This prevents you from creating a debt that can be passed on to children. It's not at all like co-signing a loan where you are responsible for the primary's default.

[@vinny7547]

What is a good insurance company for this?

[@alphazebra01]

There are many but they NEED to be a Mutual Insurance company. That means you profit from dividends. If it's not a mutual company, the stockholders profit from the dividends and you only earn interest.

[@VeteranJudy]

So how do you use this strategy with your heloc strategy. Can they be used together somehow?

[@steveross6301]

Simple answer is yes. But you have to be sure you understand the risk associated with borrowing to invest

[@pf2821]

What companies offer the best whole life insurance?

[@steveross6301]

That will depend on the client and what they are trying to accomplish

[@MonkeySpecs301]

How can the deposits at the bank be counted as liabilities twice? One to the depositors and second to the fed?

[@RG-mi2wj]

I have this but I have to pay my interest to the company that I’m insured with

[@coachsteelefinance]

His info isn't down below

[@pamelacupps5384]

What life insurance companies are best for this type of borrowing

[@steveross6301]

Depends on what your wanting to accomplish. If your open we could talk about it and see what one is best for you. -Steve Ross

[@AndreBurson]

I like the information and I'm local in the Chicago area. Can you send me more info or can we meet?

[@TheKwakBrothers]

You can reach out to Steve via [e-mail]

[@allthingsindexed9868]

I am just seeing these comments yes you can reach out to me at the info below -Steve

[@MisterJoyner]

Does it matter if the life insurance policy is provided by an employer?

[@allthingsindexed9868]

Yes it does. Most employer policies are what is considered term and has not cash value to borrow. -Steve

[@IGotTheHookup]

What are best insurance companies to do it with?

[@allthingsindexed9868]

If you would like to have a conversation I could help you with your options. Would you be open to that? -Steve Ross

[@alphazebra01]

There are many but they NEED to be a Mutual Insurance company. That means you profit from dividends. If it's not a mutual company, the stockholders profit from the dividends and you only earn interest.

[@susanmalbin3571]

Can you put in more money than the original face value of your insurance policy so that you can borrow against a larger amount in the future

[@allthingsindexed9868]

you can build it over time to do that but not initially. If you would like more info we could chat further. -Steve

[@enjoythedreamlife5658]

This idea sounds good, however when you borrow your own money, the insurance company still will charge you an Interest rate to borrow the funds. You are kind of borrowing your own money but you are not. The insurance company lends you money and uses the dividend account as collateral

[@allthingsindexed9868]

the idea is that your going to make more interest on your acct than be charged on the loan, and that is where the value of the strategy is. -Steve

[@AmericaTown]

@@allthingsindexed9868 so the interest earned from the policy could beat out the interest charged from the loan?

[@steveross6301]

@@AmericaTown yes the idea is that your account will out pace the loan and you end up making money on your own loan

[@andyb2494]

Which life insurance company offers this whole life policy. If you ever cancel the policy, what happens to the cash value, do you get it back.

[@allthingsindexed9868]

There are a handful of insurance companies that work well. As far as getting the money back it would depend on when you cancelled the policy, but yes you can get your money back. would you be open to a conversation? -Steve

[@savvymiles1481]

Where is Steves contact info???

[@gtsphotography3354]

Could a person with a $100k in this type of life insurance. Borrow money to become a hard money lender so other people can invest in real estate. So I charge interest on a 90 to 180 day and while I set up my 1st payment back to the insurance to be the same as the due date to my borrower?

[@allthingsindexed9868]

This is creative way but could definitely work. Lets get together and discuss options, fair enough? -Steve

[@jcg702]

Having lost a hammer I can tell you I've successfully hammered nails in with screwdrivers and rocks hahaha.

[@lindamora7]

we still pay the insurance company back?

[@onlychildren857]

Yes. But your money kept earning dividends and compounding uninterrupted while you had the loan. What they're talking about is a dividend-paying whole life insurance policy.

[@sergeantsunshineministries]

Where is Steve's contact information?

[@JasonJFlippingLife]

Do you use this concept to fund your own deals?

[@TheKwakBrothers]

Yes

[@lindamora7]

he said no tax, on taking out loan but if you're taking out loan to buy RE one still pays take?

[@alphazebra01]

You are not taxed on a loan since it is not earned money. One gotcha, however, is if your policy has MEC'd out. Talk to your agent about that scenario

[@susanmalbin3571]

I have a $100,000 life insurance policy last year I took out 75,000 and paid interest back at the end of the year of around five or six thousand dollars. Can I not only pay back the $75,000 but then add more to it so I have in the future a larger cash value to borrow against is that possible

[@allthingsindexed9868]

absolutely

[@patrickjoyner2176]

If I get a loc deposit it into a policy then take a loan to buy property and pay back the loc. Boom!! Am I close.

[@lindamora7]

Wreck it Ralph

[@Army_Of_Juan]

1st comment

[@TheKwakBrothers]

Nice!

[@lindamora7]

Where is his contact info?!

[@CrescentCityCollectibles]

Is this on whole or term insurance?

[@lovexoxo76]

No indexed universal life

[@onlychildren857]

Whole life. If you get one make sure to go with a mutual company.

[@allthingsindexed9868]

We can talk about options if you like -Steve

[@nosolar2023]

Be careful you need to be aware of the interest they use to illustrate the future paymebts..also be aware of the fees and cost of insurance ...some companies are very high😉

[@allthingsindexed9868]

We make sure the fees etc are and small as possible to reach your goals

[@paulgugger8987]

I don't understand. If I have an insurance pay off a loan now I owe them the money, it seems like your just trading one loan for another?

[@steveross6301]

In a sense you are. The difference is that the money you would have paid out of your loan with if you paid it the traditional way is gone never to earn you any interest ever again. Doing it this way your money is still growing and making interest. Also the loan with the insurance company doesn’t have a monthly payment your required to pay so it is more flexible. It is definitely something that makes more sense when seen visually. We can link up if your open to that.

[@youngnephtheism7537]

So this is for ppl with money?!

[@asinheaven]

Yes, it replaces your bank for saving money. It is uses a specific type of Whole Life Insurance as a savings account. You build up your savings in it, then when you have enough "saved" to make a big purchase, like a car, you "borrow" your own money from it. When you pay it back with interest, you are paying yourself back with interest. This is just my understanding of the concept after watching a few of these. It isn't a get-rich-quick scheme. Just a way to save and borrow money to your own benefit rather than to a bank's benefit. Look for "dividend-paying whole life insurance issued by mutual companies structured by cash."

[@allthingsindexed9868]

you don't have to have money to start but it does tale time to build up the money to utilize it like a bank. Would you be open to a conversation? -Steve

[@gardendwellerTX]

Whats the difference between putting money in an IRA and then borrowing against that?

[@gardendwellerTX]

Because the money that you put into premiums is essentially gone right?

[@steveross6301]

You Can’t borrow from an IRA is the difference.

[@gardendwellerTX]

@@steveross6301 You can borrow against your balance.

[@steveross6301]

@@gardendwellerTX A 401k you can borrow against (and there are some similarities) but not an IRA. There are also many other details that it is hard to get into through a text response as to why it is different. Namely interest and payback etc

[@jackwang660]

I don’t think your literally “borrowing“ money. You are using your own money from your cash value. If you all of a sudden die, the face amount of your insurance will be deducted from the loan you borrow. And can you borrow more than your cash value? If not, how would you be able to have a growth of full amount of cash value after you borrow some of the money from it?

[@steveross6301]

You are actually borrowing the money. Your loan is paid back with the cash in your account not your death benefit. Now if your using a whole life policy with paid up additions where you are literally buying more insurance and the loan is cashing out on that additional insurance you paid up. If that is what your doing then what you saying is correct. Otherwise the loan isn’t changing your death benefit and the loan only comes out of your cash

[@robertneal7189]

Can I get a loan for $22.7 Million and sure it with Income protection insurance with CD account sure account.

[@allthingsindexed9868]

This strategy wouldn't work like that unfortunately

[@poppilovice6827]

What's Steves contact info

[@vallang4832]

poppi lovice it’s above

[@robertneal7189]

do you have Steve infor need to call him

[@05nautilus]

How does the insurance company make money?

[@TheKwakBrothers]

That's a great question! From my brief conversation with Steve, I believe the insurance company makes money with the premiums and they invest in Options on the S&P 500

[@omark8012]

My understanding is that It charges interest on the loans you take out against your policy. This is nice to have but.... Some of the interests rates are as high as 8 percent. I think People can find cheaper money with a traditional personal loan assuming they have the credit.

[@omark8012]

The Kwak Brothers in the video you said you use this strategy...but you don’t know you are paying interest on the money you borrowed against your policy. ☝️ Subscriber less. I’m out.

[@allthingsindexed9868]

where they profit is the fact that you are paying a premium for life insurance. the loan and the interest etc is not their main source of profit like a bank would be. this is why they can be flexible on the pay back etc of those loans they give you, does that make sense? -Steve

[@allthingsindexed9868]

@@omark8012 the question asked how does the insurance company make money. The interest charged is not really where they make their money. So the Kwak Brothers reply is technically more correct. -Steve

[@lindamora7]

WHERE'S HIS CONTACT INFO

[@vallang4832]

Linda Mora it’s above

[@jaymcclanahan3697]

Insurance company charges way more fees.

[@steveross6301]

The fees are way more than what?

[@donnanavarro5944]

Sorry but when your quest is talking, give them the floor. It's not nice saying g yep, yep?

[@luisarmstrong8084]

So you telling me you can borrow money from the back and pay it back with the insurance money? Then make interest on it?😂

[@steveross6301]

What we are saying is you can use the insurance companies money to make a purchase, pay off debt, or invest. While your money stays in the acct continuing to grow. The key is your acct will grow at a much faster rate than any interest charged on the loan will accumulate…I could show you visually if you like, let me know, fair enough?

[@nosolar2023]

So if you tell the insurance company you did not borrow the money to buy the policy and you actually do..that would be insurance fraud...not a good idea!

[@TheKwakBrothers]

Like Steve Says, every policy and insurance company offers different features!

[@dgkman5310]

@@TheKwakBrothers What company do you use for insurance policy?

[@texastrustedoralsurgeon6830]

Wow...what a great way for an insurance agent to generate income. This is a insurance scam!!

[@tooltrader2009]

Pretty confusing.

[@steveross6301]

We can link up and I can clear some thing ups for you if you like?

[@sty723]

Well you know what they say? It takes money to make money. These guys have a few dollars initially, so it seems as if it's no problem. But Joe Blow off the street can't do that unless he has a sum to work with already!!!!!!!!!!!!!! Everybody can't be rich, but nobody will make a video telling you THAT.

[@TiberiusMaseus]

The Kwak brother in this video needs to stop with all his comments during the presentation. I had to restart the video multiple times so that I could pay attention to what the guest presenter was saying.

[@lcastill2013]

Oh wow is this channel promoting whole life insurance? See ya, you just lost all credibility in my opinion.. ✌🏻

[@allthingsindexed9868]

Whether you like whole life or not this his the only way to tale advantage of the strategy and I guess that is your choice not to, right? -Steve