In this nine part series, Tom is joined by fellow IBC Practitioner Chris Tormey to provide their perspective on Foundations of IBC. Today, in part one, they elaborate on the ...Infinite Banking Concept itself. They further discuss the characteristics of a good investment and how a well-structured whole life policy can provide benefits such as accessibility to cash, minimal market volatility, protection against inflation, and ultimate control of your wealth and finances. During this series, they will share the common misconceptions about IBC and shed more light on the many benefits of this way of thinking. Tune in over the next few weeks to learn more!
Highlights
01:49 - Who is Chris Tormey and how he has been interested and involved in the concept of infinite banking for almost a decade
02:55 - The complex concept of IBC and make it applicable to life, beyond just finances
04:36 - Brief background of Nelson Nash's journey to creating the IBC
07:14 - The two major functions that banks serve in the economy and how IBC can serve as an alternative for one of them
13:- 40 Characteristics of the ideal investment
16:50 - Misunderstandings about the product providing the IBC platform and clarification about its characteristics
27:13 - Exploration of the mutual benefits between the insurance company and the policyholder in IBC
In this nine part series, Tom is joined by fellow IBC ...
In this nine part series, Tom is joined by fellow IBC Practitioner Chris Tormey to provide their perspective on Foundations of IBC. Today, in part one, they elaborate on the ...Infinite Banking Concept itself. They further discuss the characteristics of a good investment and how a well-structured whole life policy can provide benefits such as accessibility to cash, minimal market volatility, protection against inflation, and ultimate control of your wealth and finances. During this series, they will share the common misconceptions about IBC and shed more light on the many benefits of this way of thinking. Tune in over the next few weeks to learn more!
Highlights
01:49 - Who is Chris Tormey and how he has been interested and involved in the concept of infinite banking for almost a decade
02:55 - The complex concept of IBC and make it applicable to life, beyond just finances
04:36 - Brief background of Nelson Nash's journey to creating the IBC
07:14 - The two major functions that banks serve in the economy and how IBC can serve as an alternative for one of them
13:- 40 Characteristics of the ideal investment
16:50 - Misunderstandings about the product providing the IBC platform and clarification about its characteristics
27:13 - Exploration of the mutual benefits between the insurance company and the policyholder in IBC
Perspectives on IBC with Chris Tormey - Part 2: How IBC Works
Today, in part two of Tom’s series with Chris Tormey, they dive ...
Today, in part two of Tom’s series with Chris Tormey, they dive into how IBC actually works and the benefit it has for managing finances. They explain how IBC gives ...people the opportunity to take control of the banking function in their lives and that whole life isn’t just for income replacement but also serves as a means of building equity and legacy. Take a listen to learn more about how to leverage cash value during your lifetime.
Highlights
01:27 - The misunderstandings around life insurance
02:08 - Varieties of whole life versus term insurance
07:08 - Benefits of whole life insurance
15:39 - Difference between cash value and death benefit
20:41 - Why life insurance companies allow policyholders to borrow against their policy
23:44 - How loan repayments for a life insurance policy can be flexible
25:55 - The downsides of withdrawal
31:49 - The interest rates of loans from life insurance companies
33:49 - How policyholders can borrow up to 95% of their cash value with life insurance loans
Perspectives on IBC with Chris Tormey - Part 3: How Does a Whole Life Policy Work - Episode 77
In today’s episode, Tom and Chris talk about delayed ...
In today’s episode, Tom and Chris talk about delayed gratification and its impact on life and wealth in a world of instant gratification. They discuss the need for finding a ...balance between immediate gains and future-oriented actions. Embracing failure as a part of growth and building good money habits through consistent savings, risk mitigation, and a balanced approach to wealth building are keys to success. Identifying foundational elements of wealth that withstand various conditions is essential. Tune in to hear Tom and Chris discuss strategies to impact both wealth and life success.
Highlights
02:16 - How customers are often confused by the complexity of insurance illustrations
06:07 - Various factors that could affect dividends
11:00 - How low interest rates have led to lower dividends in the past 15-20 years
20:02 - Using the key components of the policy's design
21:38 - The differences between the base premium and the paid-up additions
22:54 - The combination of PUA (paid up additions) and base premium in the Infinite Banking Concept (IBC)
23:56 - The importance of understanding how the policies work and the benefit of partnership with a powerful institution like a mutual life insurance company
Perspectives on IBC with Chris Tormey - Part 4: Why Is It Called IBC - Episode 78
In part four of this series with Chris Tormey, they talk about ...
In part four of this series with Chris Tormey, they talk about the five simple rules for IBC and the human problems that stop people from having success and wealth. ...It is crucial to adopt a long-range mindset and carefully consider future implications of financial choices. By consistently paying premiums, embracing opportunities to capitalize on cash value, and minimizing reliance on traditional banks, you can maximize your wealth. Listen in to hear more about these and the behavioral problems that can impact financial decisions.
Highlights
03:43 - Addressing the foundational rules of the Infinite Banking Concept
08:31 - The third rule: Don’t steal from the system
11:14 - Rule five: Rethink your thinking
17:09 - Final thoughts on the Infinite Banking Concept rules
23:33 - Addressing the third human issue, the gold rule for infinite banking
25:06 - Fourth human issue: Arrival Syndrome
26:29 - Addressing the fifth human issue: Use it or Lose it
29:13 - Real-life application of Infinite Banking Concept
Perspectives on IBC with Chris Tormey - Part 5: The Life Insurance Industry - Episode 79
For today’s episode of the series, Tom and Chris discuss various ...
For today’s episode of the series, Tom and Chris discuss various aspects of the life insurance industry and its relation to the Infinite Banking Concept. They highlight the difference between ...life insurance companies and stock companies, emphasizing that life insurance companies are owned by their policyholders while stock companies are owned by the public and more focused on short-term returns. This episode also touches on the role of life insurance as a wealth storage tool. Tune in to hear a better understanding of how a life insurance policy can benefit you in more ways than you thought possible!
Highlights
01:49 - Understanding different varieties of how insurance companies are structured
04:50 - Differences between public and mutual companies
09:09 - Potential risks and implications of choosing different types of life insurance products
13:53 - Designs that are shifting the risks to the policy owners
16:24 - Changes in death benefit charges in different types of life insurance
20:45 - The modified endowment contracts and the tax implications when utilized for the IBC
25:07 - Importance of long-term thinking when considering moving money into life insurance policies
Perspectives on IBC with Chris Tormey - Part 6: Isn't It Better To Buy Term?
Tom and Chris discuss the “buy term and invest the difference” ...
Tom and Chris discuss the “buy term and invest the difference” strategy, which advises purchasing term insurance for temporary coverage while investing the cost difference in the stock market. They ...emphasize the benefits of diversification in investment portfolios and suggest considering various risk assets. They also discuss the advantages of whole life insurance as a risk management tool, providing stability and liquidity during financial hardships. Take a listen to her more about this and how it can benefit you!
Highlights
01:01 - One of the rules around IBC: To rethink your thinking.
03:56 - Migration out of pensions and into self-managed investments
10:30 - Importance of diversifying your investment portfolio, not just stocks
17:58 - The concept of "self-insurance" and the importance of building large assets
22:02 - Life insurance transitioning from income protection to asset protection
24:15 - Impact on Social Security income when a spouse dies and how life insurance can alleviate the financial loss
29:59 - Diminishing popularity of whole life insurance amidst a culture of riskier investments
31:16 - Importance of designing a financial foundation that allows your dollars to perform multiple jobs
32:04 - Borrowing concept as part of a whole life insurance policy
Perspectives on IBC with Chris Tormey - Part 7: Using IBC to Pass Wealth
Today, Tom and Chris discuss the importance of transferring ...
Today, Tom and Chris discuss the importance of transferring wealth across generations and how that can be accomplished using IBC. Chris shares his personal story about his father’s whole life ...policy and how it grew over the years giving him the ability to set up policies for his own children. They talk about the value of having conversations about finances, death, and wealth growth within the family, and the emotional aspects that come with it. Tom also explains how he has structured the policies for his own children. Tune in to hear how affordable life insurance actually is and whether there is an age limit for implementing the infinite banking concept (HINT: there isn’t)!
Highlights
03:43 - The concept of initiating IBC plans within generations and how it typically starts with grandparents or great-grandparents
06:25 - Implementation of IBC within families and the benefits it brings
12:28 - Age considerations with IBC and how the rates compare for young and older individuals
19:54 - The establishment and consequences of the MEC rule
23:53 - The consequences of violating the seven-pay rule
29:38 - How the insurance company and the IRS each decide the minimum and maximum premium for a life insurance policy
Perspectives on IBC with Chris Tormey - Part 8: IBC for the Business Owner
In today’s episode of the series, Tom and Chris talk about cash ...
In today’s episode of the series, Tom and Chris talk about cash flow management being a crucial aspect of business and IBC offers an alternative method to traditional banking. A ...business owner who creates their own private bank has the ability to take advantage of tax benefits, dividends, and greater control of loan terms without any liens on business assets. With the immediate availability to cash, life insurance can play a huge role in land and real estate investment as well. Thinking about becoming a business owner? Take a listen to hear more about the benefits available through an IBC policy.
Highlights
01:39 - Business owners' main concerns are taxes and finding ways to establish a savings process that isn't 100% tied into the business' value or productivity
02:46 - The biggest asset for most business owners
06:09 - The importance of using an IBC policy to cover the cost of business operations and maintain cash flow over time
10:30 - How business owners are protecting themselves
13:10 - How IBC brings in the long-term thinking that's crucial for business owners
18:27 - The importance of business owners being prepared for all eventualities
20:00 - Although IBC can't offer free money, it puts business owners in control because the rules can't be changed without their agreement
Perspectives on IBC with Chris Tormey - Part 9: Using your IBC Policy
In the final episode of this series, Tom and Chris talk about how ...
In the final episode of this series, Tom and Chris talk about how to use your IBC policy. One of the ways to use your policy is access to loans ...where you get to determine the terms, repayment schedule, and interest rate. Another opportunity is tax-free income and accrued interest. These are just a couple of the ways to use your policy. Tune in to hear more about these benefits and other opportunities to use your policy!
Highlights
02:33 - How to start using the IBC policy
05:21 - The experience of buying a policy and its impact over time
12:50 - Starting an IBC policy at different ages
19:47 - Importance of balancing different aspects of financial planning
23:07 - Having plans A, B, and C to pay back your policy loan
24:49 - The flexibility of IBC policies and their ability to adapt to life's inevitable changes
28:22 - Various uses for whole life policy
35:14 - The IBC policy as a whole faceted asset