So you’ve been looking into the infinite thinking concept and you’re wondering when is the best time to get started? Well, age is an important factor and today we’re going to do a deep dive on what the best age to start a policy is.
First and foremost, why is the infinite banking concept a great thing? Well, the reason is we use a specially designed whole life insurance policy to get and keep you on the compound interest curve. We start that compound interest curve for you and your family and never let you fall off. You have complete liquidity, use, and control of your money along the way. Also to accomplish your short-term, long-term, and intermediate financial goals. The infinite banking concept is literally a method of making purchases. We always say:
“It’s not what you buy, it’s how you pay for it that really makes the difference.”
With this concept, you’re literally able to turn liabilities into assets and leave you and your family, or your business, in a more secure financial position than when you started.
As we noted, the infinite banking concept is a method of making a purchase. So let’s look at the other ways that you could make a purchase.
- You could finance, in which case you’re giving up control of your money to the bank for the privilege of using their money.
- You could pay cash, in which case you’re draining down the tank and no longer earning interest on the money you used for the purchase.
- You could lease, which is even worse than financing because you don’t even own the product that you purchased.
- Or you can use the infinite banking concept, in which case you’re borrowing against your own money, continuing to earn uninterrupted compound interest, and being in control of the terms and conditions of the loan.
So let’s get back to the question of when is the best time to get started with a policy for infinite banking? The answer is as soon as possible. A lot of times younger people will come to us and they’ll get hung up on the fact that we use whole life insurance for this concept because they are either single or they are a young family and don’t have children yet. What happens is they don’t move forward and that could be a huge mistake.
When’s the best time to start saving? Really, that’s the question. The answer again is as soon as possible. The trick is to always pay yourself first. A lot of times people get in the habit of paying for a million subscriptions or paying a lot for a car payment or their rent, and they forget the importance of starting that compound interest curve as soon as possible. With the compound interest curve, it needs time and it needs money. These policies allow us to save as a matter of course and still have access to that money to achieve our financial goals. You don’t have to start by putting a lot of money into a policy. You could start out at $50 a month or $100 a month. The key is to get started.
On the other end of the spectrum, are people in their fifties or sixties or even in their seventies, who say, “Gee, I wish I’d started a policy 20 years ago. I wish I knew about this”. Well, if you’re not done making purchases, you’re not too old to start an infinite banking concept policy. Whether you’re young or whether you’re old, it’s important to get started before your health is compromised. If you find out about this method after your health is compromised and you can’t get insurance, you may be able to purchase insurance on someone else’s life and still use this method and you just won’t be the insured. Keep this in mind. I have a gentleman who was 83 years old when he started his first IBC policy. So you’re probably not too old.
Here’s something to consider, when you purchase a whole life insurance policy, the insurance company is making two promises. The first promise is to pay the death benefit when you die anywhere along the way throughout your whole life. The second promise is to have a cash value equal to the death benefit at the age of maturity, which is usually at age 121. So the difference between a young person purchasing life insurance and an old person purchasing life insurance is the cost of insurance because, with an older person, the insurance company has less time to reach that same death benefit cash value equilibrium. Another way to look at this, though, is the fact that with older people, the insurance company has to put more money away sooner, which means you’ll have more access to cash sooner for an older person versus a younger person. This is very important when it comes to the infinite banking concept because with this concept, typically the insured isn’t looking at the death benefit. They’re looking more so at the cash value.
Another thing to consider for younger people is the policy design. There are riders that allow us to stuff more cash into the policy sooner to make that policy for a younger person much more efficient than the traditional way of purchasing insurance.
So here’s the point, whether you’re young without a family or old with a family or anywhere in between, the best time to get started with the infinite banking concept is yesterday. If you’re ready to get started with an infinite banking concept policy designed for you to meet your cash flow and your needs, visit our website at tier1capital.com. We have a free web course there which you’re welcome to watch. It goes into a deep dive into how our method works. If you’re ready to get started, feel free to schedule your free strategy session today.
Remember, it’s not how much money you make, it’s how much money you keep that really matters.