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What is the Infinite Banking concept? | Mike Butean

Updated: Apr 8


In this article, I will talk about what is The Infinite Banking concept


What is the relationship between Infinite Banking and Bank on Yourself concept?


The concepts are similar in the way that both use cash value life insurance as the main financial asset used to build a strong financial house. Infinite Banking concept was launched by Nelson Nash and Bank On Yourself was launched by Pamela Yellen who used to be a Nelson Nash follower


Since when was this strategy used?


Yes, it is a strategy and was used since 1900 in North America and most of the families were using it successfully but then it got kind of out of fashion with all the new financial instruments, like mutual funds, trading on the stock market, RRSP, TFSA, and others, came on board. But believe it or not the wealthy people and the banks are still using it. US banks have at least 30% of their assets invested using Infinite banking strategy. Canadian banks do not need to reveal this kind of information publicly, while it could be a similar case.


Do we have examples of famous people using it?


  • 1929, J.C. Penney – James Cash Penney used the Infinite banking concept to meet the payroll and day-to-day expenses of his department store, JCPenney. This allowed the company to ultimately rebound from the Great Depression.

  • 1939, Foster Farms – Max and Verda Foster borrowed $1,000 using the Infinite banking concept to invest in an 80-acre chicken farm. Today Foster Farms’ products are sold all over the world.

  • 1955, Disneyland – Unable to secure a large enough bank loan, Walt Disney borrowed using the Infinite banking concept to help finance the creation of his new theme park, Disneyland. Today, The Walt Disney Company has an annual revenue of nearly $70 billion.

  • 1961, McDonald's – When Ray Kroc bought out his partners (the McDonald brothers) he used the Infinite banking concept to cover the salaries of key employees. He also used the funds to pay for the marketing campaign for his new mascot, Ronald McDonald. The franchise has since grown to over 37,000 stores in over 100 countries.

  • 1980, Pampered Chef – Doris Christopher used the Infinite banking concept to start her new kitchenware company. The company was later purchased by Warren Buffet’s Berkshire Hathaway for $1.5 Billion.


What is Infinite banking?

  • Is a strategy used to structure a whole life insurance policy.

  • Is designed to supercharge growth and build wealth.

  • Is a plan that eliminates unnecessary risk and provides guaranteed returns

  • Uses dividend-paying whole life insurance as a savings vehicle.

  • Features a cash value that builds equity and is an asset you own & control.

  • Creates generational wealth building


If you are interested to find out more, please use:

http://findoutmorenow.ca/ and use the code MB10

Or contact me directly at

647-569-3799

mike@macdevfinancial.com

www.mikebutean.com


1-647-569-3799

1-800-289-8158

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