Welcome in everybody to the Magnify Wealth podcast. I'm here with Scott Gannon and Scott and I are what's called authorized infinite banking practitioners. So we help you guys with implementing the infinite banking concept. Scott, let's tell them about what is the infinite banking concept. That's a good question. If we're going to be the ones that are, that are going to talk about it, then we, I guess we should know what it is.
So the infinite banking concept, or becoming your own banker is a process. It's a process that by no means is it a product or an investment. It is a process where you accumulate a store of cash that can be turned around and be used in a leveraging style situation or essentially borrowing against.
So when you accumulate the cash, you use it for the things in your life, whether that be consumption or investment. Now we like to talk about investments and using it to your benefit to create cash flow. But don't get me wrong, it is available to use to finance all the things in your life that require financing. Such as major purchases, investments, and emergencies. And emergencies is a big one.
If you run into an emergency that causes you to have to go backwards in your investments, that's a long-term cost that is just not recoverable. And if you have the proper systems in place, you don't have to worry about that. So if we're creating a store for your cash with Infinite Banking, what are some key points that that storage needs? Well, I always say liquidity, use and control.
So, it has to be liquid. It has to be safe. It has to be tax efficient, and it should never go down in value. And ideally, it provides a good yield as well. Although this infinite banking is not about rates of return, it does produce a yield if you set it up.
But most importantly, it's the liquidity. So liquidity, use and control. So I guess we'll talk a little bit about what do we do with that cash? Then what? We talk about our emergencies or our opportunities, and we talk about our consumption. What do we do? We have our cash. Well, there's certain things like if you're practicing the infinite banking concept, you are accumulating cash on a continuous regular basis to be used.
in your financing needs, whether that be financing a vehicle or financing, you can finance a vacation for that matter. and obviously you can finance investments, you invest in yourself, you can invest in real estate, you invest in your own business. There's always things you can do with the cash that is, that is still growing when you're using it. That's the whole idea here. We're called magnify wealth. What we do is we magnify it. What do we do?
We have you accumulate money and use that money as collateral to use other people's money for whatever it is that you're going to do. So if you're using other people's money, what is the most important thing to focus on when you're following the infinite banking process? If you're, you know, say you're using it for finance and say you're using it for investing, what needs to happen so you can do it again tomorrow?
Well, interesting thing we call this called being an honest banker when you're creating your own bank You also want to treat your bank as good if not better than the banks that you've used in the past or that you continually use today for your daily transactions When you take a loan from a bank there's usually payment terms, right? So put those on yourself, although if we set it up correctly there really is no terms attached to it.
But what we try to do is get you to implement terms on yourself. Charge yourself an interest rate, charge yourself or plan yourself a payment, plan yourself an end date to have it paid down or paid off. And the great thing is, is when you are your own bank, if something does happen that you run into trouble, that you can't make a payment, well, you're the banker.
The idea here is you're the banker and the borrower. And when you read the book, becoming your own banker, you'll see Nelson compares that to, if you're a grocery store owner, don't steal the peas because you know, you're, what you're doing is you're causing your business to go backwards and you're stealing the peas. You need to pay your business. If you're using your business as product, if you're a consumer of the business you own or consumer of the bank you own, you need to make sure you follow the rule. Exactly, set rules upon yourself. Again, it's all we're talking about doing here is doing things no different than you're already doing today, it's just you need to be disciplined because you are the banker.
So, you know if we're setting up these banks for people to run, are they able to, you know, pass them onto their kids and allow their kids to also become their own bank? Yeah, of course. And I think I'll just jump right in here. We're going to talk first about the lifetime ability of this and how you can pass on this knowledge to your second generations. I mean, we are already, with generation one, generation two. And this is a lifetime commitment.
But what we do is, I don't think it's any big secret there, with our brand, we provide people with specifically designed, high cash value, dividend paying, whole life insurance. And that is your store of value. And it is by far the most efficient way to do the process of infinite banking. Really, with infinite banking, there's a number of ways you could do it. It's just high cash value, dividend paying, whole life insurance happens to be by far the one that follows the rules we laid out that it has to be liquid. You have to be able to use it. You have to be able to control it and it must be safe. And this type of high cash value, dividend paying, whole life insurance happens to fit all those criteria that we laid out. Yeah, you're in full control.
If you're, if you save in a bank, just to put it, put this into perspective, when you put your money into a bank, I mean, you could theoretically set up a line of credit against the savings account and, and perform infinite banking that way, but it wouldn't make any sense because number one, you have to apply for it. you're at the mercy of the bank and their rules, lack of control. And it's not tax efficient.
You put your money into a bank. If you're getting an interest rate at all, it's tax at your highest tax tax rate inside of the life insurance policy tax free. If this grows tax free and it never goes down. So it's the perfect vehicle for the, for the, for the process of it. And that's the key right there is to remember that infant banking, it is a process. We, you know, we, we got into the product here, but infinite banking itself. It's a process. It's not a product. It's not an investment. It is a process for saving. And there happens to be a product that is more efficient than others. It's just, you know, it doesn't, it doesn't have to be that product. It just, it just happens to be more efficient.
Yeah, exactly. It's the most efficient. Say it's not, it's not an investment. It is controlling the banking function in your life. If you can be the bank owner, I.E., the insurance policy owner, the banker, the lender, the, the borrower and you're, well, the bank, the bank, you're in control. Yeah. I think what you're trying to get to too is, you know, the, the bank ends up with a heck of a lot of money from all those parties. And if you're putting yourself in all of those roles, the money's not going to the bank. Nope. Staying in your own system. So that right there is what infinite banking is.
You need to get a little more immersed in it. Get yourself a copy becoming your own banker by R. Nelson Nash. It is in life changing read for you. You need to get on that today because as Nelson says in the book is the best time to plant a tree was 20 years ago. The second best time is today. Have a good day guys. One more thing, check, in the show notes. There's a link to purchase the book. And if you're so interested, it costs about 20 bucks. There you go. Thanks everybody for tuning into the Magnify Wealth podcast with Scott Gannon. Have a great week. See you later.
