by Jason K. Powers

To understand the unique approach of the Infinite Banking Concept (IBC), it’s essential to first delve into the foundational practices of the modern U.S. banking system – particularly, fractional reserve banking. This system, where banks are required to keep only a fraction of their total deposits in reserve and are free to lend out the remainder, is a cornerstone of contemporary finance. While the theory is that it fosters economic growth through increased lending (and most certainly enables banks to generate significant profits), it also introduces significant risks such as bank runs, asset bubbles and destabilization of the financial system at large, as we’ve seen time and time again.

Fractional reserve banking effectively creates money out of thin air. For every dollar deposited, only a fraction is kept on hand, and the rest can be used for loans. Before 1992, banks were required to keep 12% of deposited amounts on reserve. This meant they could loan out the remaining 88%. In 1992, that reserve was lowered to 10%.  This now meant that 90% could be loaned out. In March of 2020, following the shockwave of COVID-19, the Federal Reserve lowered that requirement to an unprecedented 0% (Zero Percent), where it has remained to date. We all know what this means.

This can lead to a multiplicative effect in money supply creation, potentially leading to inflation if not carefully managed. Through the lens of Austrian Economic theory, we would argue that it leads to unsustainable credit expansion that can cause economic bubbles and crashes. Austrian economists advocate for a banking system based on sound money principles – where money supply expansion is tightly controlled and closely tied to real assets like gold, thereby promoting economic stability and reducing inflation risks.

Transitioning to Infinite Banking Concept

Against the backdrop of these potential instabilities inherent in fractional reserve banking, R. Nelson Nash introduced the Infinite Banking Concept. Nash proposed that individuals could become their own bankers, thus sidestepping some of the systemic risks posed by traditional banking practices. By utilizing dividend-paying whole life insurance policies as financial tools, individuals can build a personal banking system. This system allows policyholders to borrow against the cash values of their policies rather than depending on commercial banks for loans.

Here’s how it works: a policyholder pays into a properly structured whole life insurance policy designed specifically for the purposes of Infinite Banking, which over time accumulates a cash value. This cash value grows at a guaranteed rate and also earns dividends. Policyholders can then borrow against this cash value for personal (or business) financing needs – whether for buying a car, investing in real estate, or funding a child’s education – without having to go through a traditional bank. Now you, the policy holder, is in control of the banking function in your life.  Imagine a life without the bank.

The beauty of this system lies in its simplicity and control. Loans taken against a life insurance policy come with no mandatory repayment schedule, and the interest rates are typically lower than those of bank loans. Moreover, since the policyholder is borrowing against their own savings, they are essentially paying themselves back, thus keeping the money within their personal economy.

Infinite Banking as a Sound Money Solution

From an Austrian Economic perspective, the Infinite Banking Concept resonates strongly with the theory’s core principles. Austrian Economics favors systems that minimize the risk of inflation and promote fiscal conservatism. By encouraging individuals to save and build their wealth within a life insurance policy – a historically stable and non-volatile asset – IBC promotes financial self-reliance and stability.

Moreover, by reducing reliance on traditional banks and their loan products, individuals using the Infinite Banking Concept mitigate the risk of being adversely affected by broader economic downturns or banking crises. They create a buffer against economic uncertainty by leveraging their life insurance policies to fund their borrowing needs.

In conclusion, while fractional reserve banking has facilitated economic expansion and prosperity on a massive scale, it is not without significant risks – risks that are amplified by the very nature of the banking practice as critiqued by Austrian Economics. The Infinite Banking Concept offers a compelling alternative that not only aligns with Austrian principles of sound money but also empowers individuals by making them their own financial managers. By building wealth in a controlled, self-sustained banking system, individuals can achieve greater financial security and independence, making the Infinite Banking Concept a prudent choice in an uncertain economic landscape.

Jason K Powers is a Multi-Business Owner, Real Estate Investor and an Authorized IBC Practitioner. In an exclusive partnership with the National Real Estate Investor Association, Jason is the go-to expert for all aspects of Infinite Banking and Life Insurance. Connect with Jason today to explore how life insurance can empower you to reach your financial goals. Visit www.1024wealth.com/NREIA for more information.

By Jason K. Powers

In the tapestry of life’s responsibilities, there’s one thread that’s often overlooked until it’s keenly needed: life insurance. It’s not just a policy tucked away in a drawer or a line item on our list of grown-up concerns—it’s a profound expression of love and foresight. Imagine it as a silent guardian of your family’s future, a promise that whispers, “I’ve got you,” even when you’re no longer there to say it yourself.

Think of life insurance as the ultimate act of planning—a way to outsmart the unpredictability of life itself. It’s about ensuring that your loved ones can maintain their lifestyle, chase their dreams, and maybe, just maybe, not feel the financial gravity of their loss as heavily. It’s a unique blend of hope and pragmatism, woven into a safety net that catches your family when fate takes an unexpected leap.

Why do we strap on seatbelts every time we get into a car? It’s not because we plan to crash; it’s because we acknowledge the possibility, however slim, and choose to mitigate it. Life insurance echoes this sentiment. It’s not a morbid fixation on the end but a strategic move to ensure that the story goes on, even if we’re no longer around to see it unfold.

For families, the absence of a loved one often brings a dual burden: the weight of grief and the potential collapse of financial stability. Here, life insurance steps in, quietly taking care of college funds, mortgages, or even just the daily expenses that pile up, unnoticed until they’re not. It’s the unseen hand that keeps the ship steady, ensuring that dreams, those of your children or spouse, don’t drift away with the tides of change.

And let’s not forget about debts. They’re loyal companions to many of us, sticking around far longer than we’d like. Life insurance ensures that these unwelcome guests don’t overstay their welcome, becoming burdens for those we love. From mortgages to personal loans and student loans, it clears the slate, offering a breath of fresh air to those figuring out their next steps without you.

But life insurance isn’t just a financial parachute; it’s a versatile tool. For some, it’s a stepping stone to future dreams—a fund for education, a down payment on a home, or a seed for a business venture, and even a supplement to retirement. For others, it’s a way to leave a legacy, supporting causes close to their heart or ensuring their family’s prosperity for generations. And amid the complexities of tax laws, it often emerges as a beacon of efficiency, navigating through to provide benefits without the usual fiscal headache.

In essence, life insurance isn’t merely about mitigating loss; it’s about amplifying love, foresight, and responsibility. It’s a testament to the fact that while we can’t predict every twist and turn of life, we can certainly prepare for it. So, as we weave the narrative of our lives, let’s not forget this crucial thread. It might just be the one that holds everything together, ensuring that the story—our family’s story—goes on.

Jason K Powers is a Multi-Business Owner, Real Estate Investor and an Authorized IBC Practitioner. In an exclusive partnership with the National Real Estate Investor Association, Jason is the go-to expert for all aspects of Infinite Banking and Life Insurance. Connect with Jason today to explore how life insurance can empower you to reach your financial goals. Visit www.1024wealth.com/NREIA for more information.

By Jason K. Powers

For real estate investors, the balance of risk and reward is a daily consideration. While tangible assets like properties can seem like solid pillars in one’s investment portfolio, unforeseen circumstances can threaten the stability of even the most carefully laid plans. This is where “Instant Term Life Insurance” becomes an invaluable asset.

Why Instant Term Life Insurance is Critical for Real Estate Investors:

Real estate investing is inherently linked with long-term planning. Whether you’re a seasoned investor with a diverse portfolio or just starting to dip your toes into the property market, the importance of securing your investments cannot be overstated. Instant Term Life Insurance is designed to provide rapid coverage for real estate investors, ensuring that their fiscal responsibilities are met, and their legacies are protected, even in the event of an unexpected tragedy.

Features of Instant Term Life Insurance:

National REIA has partnered with Unbridled Wealth & Jason K Powers to bring member their new Instant Term Life Insurance! This product stands out with its quick and hassle-free application process. Here’s what real estate investors can expect:

• Speedy Enrollment: Say goodbye to lengthy applications and underwriting processes. Our instant policy is designed to get you covered swiftly so that you can focus on what you do best – investing.
• Flexible Terms: We understand that each investor’s needs are unique. That’s why we offer flexible coverage options that cater to different investment scales and horizons.
• Competitive Rates: Tailored specifically for real estate investors, our rates are competitive, providing you with the financial protection you need without undermining your investment returns.
• Nationwide Coverage: No matter where your investments are in the 50 States, our coverage travels with you, offering a nationwide safety net.

Benefits for Real Estate Investors:

• Asset Protection: Ensures that your investment properties are protected, avoiding forced sales or foreclosure in the event of your death, by having appropriate life insurance coverage for outstanding mortgage debts.
• Estate Planning: Provides funds to pay estate taxes or settle debts, keeping your real estate holdings intact for your heirs.
• Business Continuity: Offers the means to maintain business operations for your partners or successors, ensuring that your real estate ventures continue without financial interruption.
• Debt Coverage: Can be used to pay off outstanding mortgages or loans tied to real estate investments, shielding your portfolio from debt liabilities.
• Liquidity at Death: Delivers immediate cash to your estate, which can be crucial for handling maintenance costs, property taxes, or supporting ongoing development projects.
• Buy-Sell Agreements: In the event of a death of one partner, funds from the policy can be used to purchase the deceased partner’s share of investment properties, which is essential for real estate partnerships.
• Tax Benefits: The death benefit from a term life insurance policy is generally income tax-free, providing your beneficiaries with maximum financial benefits.
• Collateral for Loans: Some investors may use their life insurance policy as collateral for loans, which can be used to further invest in real estate opportunities.
• Flexible Investment Capital: The payout from a term life insurance can serve as a financial springboard for your beneficiaries to invest in new opportunities or expand existing holdings.
• Peace of Mind: Knowing that your investments and your loved ones are protected in case of any unforeseen events can give you the confidence to take on new ventures and grow your real estate portfolio.

Conclusion:

Our Instant Term Life Insurance isn’t just a policy; it’s a strategic tool for real estate investors across the United States. It’s about securing your hard work and ensuring your investments stand the test of time, no matter what life throws your way.  Real estate investors understand the value of protection and planning. With our Instant Term Life Insurance, you can make sure that your assets, and your legacy, are always in good hands.  To learn more about how our product can be tailored to suit your investment strategy, visit www.1024wealth.com/NREIA.

Jason K Powers is a Multi-Business Owner, Real Estate Investor and an Authorized IBC Practitioner. Jason works with clients across the country showing them how to achieve their financial goals by taking control of the banking function in their life and creating financial velocity that can last for generations.

By Jason K. Powers

The Recent Banking Crisis

The recent banking crisis, marked by the collapse of several major financial institutions, has been a wake-up call for investors worldwide. This crisis has unveiled a hard truth: the traditional banking system, often perceived as a bedrock of financial stability, can be incredibly fragile. Banks, even those with longstanding reputations and seemingly robust structures, have been unable to withstand the economic pressures, leading to sudden collapses. These failures have left countless customers in the lurch, struggling to regain control of their financial futures.

For real estate investors, this crisis has posed significant challenges. The property market, inextricably linked with the financial sector, has felt the shockwaves of these banking collapses. Investors have had to grapple with issues such as frozen assets, interrupted cash flows, and declining property values, and even not being able to get checks written or cashed, casting shadows of uncertainty over their investments.

“In such a volatile environment, the question arises: is it prudent for investors to continue trusting all of their hard-earned money to these unstable institutions?  Or is there a safer, more reliable alternative?”

Enter the Infinite Banking Concept (IBC)

This financial strategy, grounded in the principles of self-reliance and financial autonomy, empowers you to become your own banker. Instead of depositing money into traditional banks that may falter or fail, IBC encourages individuals to utilize properly structured whole life insurance policies with cash values. These cash values can be borrowed against, ensuring that your money remains within your control, and providing a safety net in the face of banking crises. With IBC, your financial security is no longer at the mercy of external institutions, but rests firmly in your own hands.

The U.S. Inflation Crisis and Infinite Banking Concept as a Hedge

The U.S. is also currently grappling with a significant inflation crisis, the likes of which hasn’t been seen in decades. Consumer prices are soaring, the cost of living is on the rise, and the dollar’s purchasing power is rapidly eroding. This economic climate can be particularly detrimental for real estate investors. As inflation increases, the real value of rental income can decrease, and the cost of property maintenance can escalate, both factors potentially eating into your profit margins.

Furthermore, inflation can also affect the value of money sitting in traditional banking accounts. When inflation rates surpass the interest rates offered by these accounts, the real value of your savings diminishes over time. In essence, your money is losing value while it sits idle in the bank.

This inflation crisis underscores the need for a solid, reliable hedge—a way to protect and potentially grow your wealth despite escalating prices. Here, the Infinite Banking Concept (IBC) presents a compelling solution. The cash values in properly structured whole life insurance policies, the cornerstone of IBC, grow on a tax-advantaged basis. These policies provide a guaranteed, contractually ensured rate of return that often outpaces inflation rates due to its compounding nature. Unlike traditional banking, the value of your ‘bank’ under the IBC is not directly tied to the economy’s performance. This financial insulation offers a level of protection against inflation, helping to preserve your purchasing power and safeguard your wealth.

The Infinite Banking Concept in Real Estate Investment

The beauty of the Infinite Banking Concept (IBC) is its universality. This strategic financial approach isn’t the exclusive domain of the wealthy or financially elite—it’s accessible and beneficial to anyone, regardless of their current financial standing or investment portfolio size.

In the realm of real estate investment, many potential investors are daunted by the significant capital often required to enter the market. Properties, especially in popular or high-demand areas, can carry hefty price tags. Add to that the potential costs of renovation, maintenance, and property management, and it can feel like a financial mountain too steep to climb.

However, the IBC presents a potential solution to this hurdle. When you adopt the Infinite Banking Concept, you are essentially establishing a personal banking system. This properly structured whole life insurance policy accumulates a cash value over time, against which you can borrow to fund your investments. This mechanism allows you to tap into a source of capital that grows over time and remains under your control.

So, whether you’re a seasoned real estate investor looking to expand your portfolio or a newcomer eager to make your first property purchase, the Infinite Banking Concept can provide the financial foundation and flexibility you need. It is a strategy that transforms the intimidating financial mountain into a manageable, even scalable, hill throughout one’s lifetime.

Moreover, the death benefit associated with the insurance policy provides a financial safety net for your loved ones, adding an extra layer of security to your investments. And as your policy’s cash value grows over time, so does your ability to invest and generate wealth.

Conclusion

In today’s uncertain economic environment, the Infinite Banking Concept can provide real estate investors with a stable and secure financial strategy. It offers protection against banking crises and hedges against inflation, all while providing a powerful tool for real estate investment. Regardless of your financial status, the Infinite Banking Concept is an accessible and practical tool to harness.

Not only does it safeguard your wealth, but it also provides a continuous flow of capital for your real estate investments. By leveraging the IBC, you’re not just saving for the future; you’re actively investing in it.

The banking crisis and inflation serve as reminders of the inherent risks in traditional financial systems. By contrast, the IBC allows you to take control of your finances, mitigating risk and promoting growth. For real estate investors, it is a pathway to greater financial freedom and security.

In a world of financial uncertainty, the Infinite Banking Concept is more than just a strategy—it’s a revolution in personal finance that empowers each individual to become their own bank. It is time to explore this opportunity and witness the potential it holds for your real estate investment journey.

Jason K Powers is a Multi-Business Owner, Real Estate Investor and an Authorized IBC Practitioner. Jason works with clients across the country showing them how to achieve their financial goals by taking control of the banking function in their life and creating financial velocity that can last for generations. Reach out to Jason today to see how the Infinite Banking Concept can work for you. Learn more at: www.1024wealth.com/NREIA

By Jason K. Powers

 In the book, “How Privatized Banking Really Works” by L. Carlos Lara & Robert P. Murphy, it says  “It is possible to salvage your household’s financial situation, despite the shackles put in place by powerful forces. But you don’t stand a chance if you allow these same forces to design your blueprint for escape…”

We are in strange times, financially speaking.  Any given day, we can turn on the television and hear someone talking about the inflation rate, consumer debt, a boom or bust cycle, investment decline and more.  At the time of this writing, the U.S. national debt is up over $30 trillion, student loan debt is up past $1.7 trillion and credit card debt has surpassed $1.1 trillion. Just ten years ago, the U.S. national debt was at $15 trillion with credit card debt hovering around $852 billion.  Let those numbers sink in.

Let’s take a minute and visualize what one trillion dollars looks like.  If you spent $1 per second you will have spent $86,400 in one day or $31.5 million in a year. It would take you nearly 32,000 years to spend 1 trillion dollars.  Again, our country is $30 trillion in debt.  You can draw your own conclusions on the impact of this kind of spending.

Personal finances for thousands are in shambles or at best traumatized. Savings accounts are being depleted, retirement accounts are taking a beating, interest rates are rising, and the list goes on.

How do we protect our hard-earned money? Where do we store money besides our bank accounts & qualified employer or government-controlled environments?

In our financial world, most of us prefer to have our money in something that is safe, liquid, has a high rate of return, is tax advantaged, can provide a (future) source of income, isn’t correlated with the stock market if it can be helped, acts as a hedge against inflation, and is creditor protected. It is ok to dream, right?

Change the way you think about your finances, and it will change your future.

One little known strategy used by the wealthy is putting money through a properly structured whole life insurance policy and utilizing the cash value access to create financial velocity.  We call this the Infinite Banking Concept. It is an avenue where you can warehouse your wealth allowing it to compound year over year (internally) even while you’re using it (externally) to make even more money.  It is a place to warehouse your wealth while at the same time borrow against it to use for real estate investing, private money lending, financing your own car, a down payment on a house, buy a house outright, and even retire on.

One may wonder why the wealthy use this strategy. One has to wonder if simply changing the way we think about money can change our financial trajectory, while still allowing us to do the things we love.

What would your life be like if you never had to pay high interest to an outside bank again. Imagine financing your own deals. Imaging what it would be like if you could be your own bank.

The time to start is now.

Jason K Powers is a Multi-Business Owner, Real Estate Investor, Life Insurance Agent and an Authorized IBC Practitioner. Jason works with clients across the country showing them how to achieve their financial goals by taking control of the banking function in their life and creating financial velocity that can last for generations.  Learn more by visiting https://1024wealth.com.