What CPAs Get Wrong About Infinite Banking (ft. Anthony J. Faso)

Anthony J. Faso (0:00)

Because he had access to the money, he was able to make different choices. He was able to focus on his goals, not focus on building some nest egg that hopefully will be there when he's in his 60s.

SPEAKER_2 (0:18)

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 Muret.

Joey Muré (0:50)

Wealth Without Wall Street Tribe, welcome back to the show, our good friend, Anthony Faso. Anthony, good to have you back, man.

Anthony J. Faso (0:57)

Great to be here.

Russ Morgan (0:58)

All right. We got a former CPA in the room, Travis, it'd only be right for me to ask him a really hardball question out of the gate, and it has nothing to do with taxes, but has everything to do with CPAs, right?

I'm not asking you to make fun of exact specific CPAs, but I do want to know. There's a lot of CPAs out there who hate Infinite Banking, and you talk about Infinite Banking a lot. I know that you've been doing this for a long time. So what is it that the CPA community is getting wrong in relationship to Infinite Banking that you're getting so right?

Anthony J. Faso (1:31)

What they're focused on is the product.

And what they're comparing is the product we use for Infinite Banking is a high cash value dividend paying whole life policy. That's where we're going to store our capital. And what CPAs get wrong, they're looking at rates of return. If I put the money or the cash value growth in my whole life policy versus another product, say a mutual fund. But this is bigger than just a product. Infinite Banking is a process.

Russ Morgan (2:05)

I want to jump in there real quick. Because, I mean, why wouldn't I want to hire a rate of return? So that seems to be a logical reason if I'm trying to defend the CPA community out there, which I'm not, but I'll pretend for a second.

And I'm like, well, why wouldn't I want to hire a rate of return? What is it that I'm missing here?

Anthony J. Faso (2:22)

Well, I didn't say you're not getting a higher return. You're just looking at the products.

This is where Infinite Banking comes into play. And it's how you use the cash inside the policies. So that I can get a higher rate of return, I hear that all the time. And that's one of my favorite questions when people come. Because this isn't an either or. We're not saying put the money in life insurance or whatever your asset of choice is, right? That this is an and asset.

We have to store our money somewhere between we buying that asset. The advantages of storing it in a whole life policy is not only is it safe and liquid, most states are asset protected, but we can leverage against it. Which means that we're never breaking the compound interest curve. That money is in your policy, continuing to grow, and it is in your cash flowing asset as well.

Joey Muré (3:19)

So really and truly, the CPA is only looking at kind of the tip of the iceberg if it is.

Like if you do this or this, then the math works out and you shouldn't do it. Right? I mean, what have they missed outside of that about Infinite Banking?

Anthony J. Faso (3:36)

Because I tell you, CPAs, they're very focused on the bottom line.

Right? And so they're looking at the investments. We're looking with Infinite Banking. It's bigger than just the bottom line of the policy. Now, we have that ability to leverage against it to buy cash flowing assets. So we have our money working in two places, which means we have returns in two places as well.

Russ Morgan (4:03)

Do you feel like maybe they're looking at this from like a year to year as compared to a longer period? Is that kind of what you're alluding to?

Anthony J. Faso (4:10)

Well, mainly, they're looking at that first year. And typically, with Infinite Banking, there is a little startup cost here where there is a little loss of liquidity the first couple of years.

And that's where we lose a lot of CPAs. But what I like to say, if you do any asset, if you invest in your 401k, which many CPAs will recommend, and let's say you need that money to do some other investment that's outside your 401k, if you take that money out, you don't have that dollar because you got to pay taxes and penalties. So we need to focus on more on just that return for one year. We need to focus on achieving and helping our clients achieve their goals.