Mike and Chris work through the second half of this awesome chapter by going in to depth on Nelson’s vehicle purchase example. They drill down into the C/D method and the Infinite Banking method, since they are the only two ways to be ahead in the scenario. What might surprise you is the difference financially.
In this episode, Mike and Chris dive into Nelsons chapter titled ‘How to Start Building Your Own Banking System.’ Part of Nelson’s brilliance is how he can bring high level economics down to the you and me level. This chapter is no different. He compares five methods for purchasing a vehicle, something we’ve all done. Mike and Chris unpack these methods and give insight into what Nelson was truly trying to get across. Which, by now we certainly know, is that Whole Life Insurance is the most advantageous place to house your money. Listen for Mike and Chris to give personal stories in this one. You might be surprised!
In the wrap up of the Create the Entity section, Mike and Chris discuss Universal and Variable Life in relationship to Infinite Banking. They talk about how Nelson felt about those products and the reasons why he had those opinions. Enjoy!
In the third part of Creating the Entity, Mike and Chris expand upon Nelson’s idea of having multiple policies to accomplish the long term goals of Infinite Banking. They also reiterate how Whole Life Insurance is misclassified. Pay close attention to this one. The principles are integral into the success of Infinite Banking and center to Nelson’s teachings.
Mike and Chris pick up right where they left off and continue to the ins and outs of creating the entity. Nelson spends time explaining the classification of Whole Life, which he contends should have been called a ‘banking system with a death benefit thrown in for good measure’. Remember, we used to think that potatoes were poisonous because of misclassification… rethink your thinking.
This next section will be a multi-part podcast on the idea of Creating the Entity. Mike and Chris take a dive into the world of Life Insurance Actuaries… yeah, we know you’re riveted. However, this is critical to understand, if we are to understand Whole Life Insurance, and how it is the best tool for banking. Watch and learn, we promise it’s more exciting than it sounds!
Nelson wrapped up the Human Problems section with a one page chapter on the topic of Use It or Lose It. Mike and Chris venture down into the main principle, EVA, or Economic Value Added. Which is the “recognition of the fact that your own capital has a cost, as well as that which has been borrowed from banks.” Seems simple enough, but as Nelson wrapped the chapter up he states it perfectly, “Just like EVA, to be effective, IBC must become a way of life.”
Nelson states, “This phenomenon probable limited the achievements of mankind more than anything else. When this ‘thing’ infects us, we stop growing, stop learning. We turn off or tune out the ability to receive inspiration — because we ‘already know all there is to know.'” If that doesn’t make you stop and ponder for a moment…
Nelson was right, though. Our ability to learn and grow is almost always hindered by our human nature, or the arrival syndrome. Watch and listen as Mike and Chris go deeper into this incredibly short, but packed chapter about that ‘thing’ that is infecting us. You will certainly walk away glad you did!
In this episode Mike and Chris dive into Willie Sutton’s Law. Nelson had a lot of well thought out opinions on things. So why does he follow up the Human Problems with a chapter about a notorious bank robber? Well, I will steal from Nelson (via Willie), “Wherever wealth is accumulated someone will try to steal it.” Watch, listen and enjoy this first episode of 2021!