Infinite Banking, Explained on One Whiteboard (No Pitch)

Joey Muré (0:00)

In this video, I'm going to explain Infinite Banking on a single whiteboard. By the end of this video, you will understand exactly how it works, what it's not, whether it's right for your situation. And I want to say this up front, because I've been doing this for more than a decade. The number one reason that entrepreneurs and business owners get confused or burned with Infinite Banking is that nobody ever drew it out for them properly. They heard it maybe on a term on a podcast, they saw it pitched on Instagram, they walked away skeptical, or worse, they bought the wrong version of it. And if you've been skeptical, that's good. You should be. There's a lot of bad information out there. I'm gonna give you the version that holds up even when you draw it on a whiteboard. Because here's what I want every business owner watching this to know. This isn't a hack. This isn't a tax loophole. The wealthy have been using this very structure for over 100 years.

The reason you've never heard about it from your traditional advisors, frankly, they don't get paid for it. I'm gonna walk you through five things of the order. What the vehicle actually is, how the dollar enters the system, what's the second job that that dollar does, how the loan mechanic works, and what years 1, 5, and 10 actually look like.

So stay with me through this diagram, and the whole thing is gonna click.

SPEAKER_2 (1:20)

Welcome to The Wealth Without Wall Street Podcast, your guide to understanding how to get out of the Wall Street Rat Race and start your own mailbox money lifestyle.

Now, don't let these handsome southern draws fool you. These financial minds are teaching our country to enhance savings, increase cash flow, and create passive income, all without the help of Wall Street. Are you ready to break through? Now here are your hosts, Russ Morgan and Joey Mure.

Joey Muré (1:52)

Before we get started, I want to tell you what this video is not. Because there's a version of this conversation that turns into a sales pitch very quickly. This isn't a product pitch. I'm not going to tell you which insurance company to use. I'm not going to compare policies. I'm not going to sell you anything in the next 12 minutes. The promise is full understanding of how the strategy works by the end of the video. That's it. Now the people watching this are mostly entrepreneurs and business owners. So why does this strategy specifically fit that person? Three reasons. One, business owners have surplus capital that they need to deploy or want to deploy. Two, they understand cash flow because they live by it every day. They live or die by it every day. Three, they hate having their money locked up where they can't get to it. Infinite banking solves all three of these problems at once. Alright, let's get to the board. So step one, what the vehicle actually is. The vehicle is a specifically structured whole life insurance policy. Now I want to stop you right there. Because for most business owners watching this, the moment they hear whole life insurance, they immediately think of one of three things. Either Dave Ramsey told them this was bad.

Two, their dad bought one of these in 1985 and it just hasn't performed well. Or three, they got pinched one at a bad steakhouse dinner.

All three of those reactions are fair. Because none of these scenarios were about infinite banking. They are about whole life policies designed for the wrong purpose. Let me explain what I mean. So there's three main components that go into designing a life insurance policy. The first is cash. How much cash do you want to put in? The second is what is your goal?

It's a lot of times around death benefit. And the last is how much time do you have? Let's break this down now based on the way Dave Ramsey would teach you versus the way IBC is set up. Dave Ramsey would say you want the most death benefit with the least amount of cash. This is why he talks about term life insurance. There's literally no cash value that grows in that policy, but you're solving for death benefit over a specific period of time. The way in which infinite banking works is we take the same vehicle, but we totally do the polar opposite. We want the least amount of death benefit with the most amount of cash. This is how banks solve for buying life insurance. When I was at Wells Fargo, they had $19.3 billion in cash value life insurance structured exactly the way that I'm pointing out. At the end of the day, they're both life insurance, but they behave completely differently. Now let me clarify one thing.