Becoming Your Own Banker
Never finance, lease, borrow or even save money to purchase another car in your life. Unlike the vast majority of Canadians who pay interest to a financial institution for a loan, or the smaller group of people who will save and pay cash for their new vehicle (removing those funds from their interest-generating savings account, thus reducing the amount of interest they will earn) you can use the Infinite Banking Concept to personally finance your new vehicle.
First, create a ‘pool of money’ in a very stable account that is guaranteed to grow. The Infinite Banking Concept suggests using dividend-paying whole life insurance to create this pool of money. You will then use this growing pool to finance your car yourself and as you pay the money back, the principle and interest that you would have lost to a bank goes directly back into your money pool.
By using an appreciating asset as collateral, you can turn vehicle financing into a wealth accumulation technique.
Many Canadian businesses lease new equipment to increase production and expand their operations. There are certain tax advantages to leasing equipment, but one major disadvantage of this method is that the leasing of equipment includes finance charges, costing the business money.
By using the Infinite Banking Concept ®, you can lease equipment for your business and recapture all the finance charges that you were paying someone else.
Imagine funding your child’s college education in a way that not only guarantees a return on your investment but also helps teach them how to safely grow their own finances? When properly structured, a dividend paying whole life insurance policy becomes a college savings fund that can be used to pay all expenses, even in the event of the policyholder’s death.
Use the Infinite Banking Concept ® to create a college savings fund and you can teach your children how to take responsibility for the costs of a college education and at the same time become financially successful for the rest of their lives, regardless of their field of study.