Learn to Think Like a Banker

Posted By: Olivia McGraw ICOR Blog & News,

Would you like to learn the best kept secret in finance? Did you know you can both save for retirement and use that same money for your current real estate investments without the clunky hassle of a self-directed IRA? Why have you never heard of this? Because what is popular and familiar isn’t always what the wealthy are doing with their finances. They invest time and brain power to understand one of the most powerful financial tools available- the Infinite Banking Concept.


Not only am I an educator in IBC, I’m also a practitioner. In the last five years my husband and I learned how to think like bankers. Bankers know that the way the bank makes money is if it is moving- not sitting in the vault behind the counter. Bankers know that to make money they must take dollars on deposit, and loan them out with interest to borrowers. Borrowers willingly accept the terms of the loan in hopes of making money from the money borrowed. But rather than make an external bank wealthy from the interest, we treat ourselves with the same respect we would any other financial institution… and pay our loans back with interest. This changes when we retire. At that point we can take out “loans” from our policy- without paying taxes on our retirement income because no one pays taxes on loan, then our loan will simply be reimbursed when one of us “graduates”… because that’s how life insurance works.


Five years ago we started our “bank” by launching a properly designed, dividend paying, permeant life insurance policy. Each of those italicized words are essential in making the entire concept function. A year later, we took out our first loan to purchase a car. Because this is a simple life necessity, we are decided to be responsible for car payments and make monthly payments- with interest, back into our “bank”. Before this loan was fully repaid, we took a second loan as a down payment on our first real estate investment. Our property is cash flowing beautifully- paying not only for itself, but also repaying our second policy loan. Then a year later we took out our third policy loan. The money is not simply pooling and earning .02% interest in a savings account. It is moving, and making compounding interest, dividends (profits), and serving a purpose inside our policy. But because this is the only vehicle on the planet that earns compounding interest on the gross amount accumulated in the policy, we are also borrowing out the net and making money outside the policy through purchases & investments.


Is your brain spinning? Excellent. We should talk. What is simple is not always easy, but there is always a beautiful moment when I meet with clients and the light bulb goes off. They understand the freedom, opportunities, security, and fun they can have when they learn how to appropriately apply the principles of banking to their own system.


This summer is the perfect season to invest in your own education. A consultation will only cost your time. But if you wait another year before we talk, that time could cost you compounding interest that you could have earned if you started today.

 We look forward to hearing from you!

Olivia McGraw- omcgraw@unbridledwealth.com   & Jason K. Powers- jpowers@unbridledwealth.com