Infinite Banking Software: Providing Personal Finance Mastery
Infinite Banking, a strategy grounded in using whole life insurance as your own banking system, has become a popular method for managing personal finance. The concept, rooted in leveraging the cash value of whole life insurance policies, offers a outside the box approach to maximizing your dollars. To effectively implement and manage this strategy, Infinite Banking Software plays a valuable role.
Role in Personal Finance
Infinite Banking Software helps in assessing the long-term growth of infinite banking, the feasibility of loans against the policy, and repayment plans. This comprehensive approach is great for developing tailored financial strategies to help you achieve your goals.
The foremost software available is the Infinite Banking Concept Calculator Software by Truth Concepts™, Beyond being just an Infinite Banking Concept calculator, the Truth Concepts software provides a comprehensive view of financial opportunities, aiding in making informed decisions. The software provides multiple financial calculators and tools. Below is a brief summary of some of the more notable calculators.
Max Potential Calculator:
The benefit of this calculator is it shows you your total cumulative earnings over your lifetime, minus taxes, debt, and lifestyle. You can adjust the numbers so that you get a better sense of what changes you can make in your finances to maximize the amount of money you keep.
Borrowing Strategy Calculator:
This tool helps you create a borrowing or “banking” strategy by illustrating the principles of the Infinite Banking Concept. It analyzes loan and payment options to show how alternative funding sources, such as a life insurance policy loan, can be more effective than commercial bank borrowing.
Automobile Purchases Calculator:
Demonstrates the true cost or opportunity cost of paying cash for big-ticket items like cars. It helps you understand how leveraging an IBC policy can improve your personal borrowing strategy and the cost of paying cash now in future dollars.
Additional Infinite Banking Calculator Ideas
Compound Interest Calculator
An Infinite Banking strategy combined with high cash value whole life provides an opportunity for true compound interest growth. Your cash value grows guaranteed and uninterrupted in your policy year after year.
Using a compound interest calculator, you can get a clearer picture of how much your policy can grow, earning a consistent and guaranteed return, with no losses. For more on this topic, check out our article on the best compound interest account.
Time Value of Money Calculator
A time value of money calculator demonstrates the importance of putting your money to work now versus in the future. Money+Time provides you with the best opportunity to maximize your dollars and make your dollars work for you.
Opportunity Cost Calculator
A great tool for using in conjunction with the Time Value of Money Calculator is the Opportunity Cost Calculator, because it shows you how much your present dollars would be worth in the future. Or to put it another way, it shows how much a present dollar would be worth in the future had you saved that dollar versus spending it.
Infinite Banking: Concept and Application
- Whole Life Insurance as a Tool: Whole life insurance is central to the Infinite Banking Concept, offering both death benefits and a cash value component. This financial instrument is not just for protection but also for wealth accumulation and liquidity.
- Steps in Infinite Banking:
- Purchase a Policy: Start by buying a whole life insurance policy from a mutual insurance company.
- Build Cash Value: Pay premiums, part of which contributes to the cash value, growing over time.
- Borrow Against Cash Value: Take loans against the policy’s cash value for various needs and opportunities, such as paying off debt or purchasing assets.
- Repay Loans: Ensuring the cycle of borrowing and repayment continues.
- Tax benefits, as policy loans are typically not taxable.
- Financial leverage, as cash value continues to grow even when a loan is outstanding.
- Financial control by reducing dependence on traditional banks.
- Creditor protection in most states.
- Asset protection and legacy planning through the death benefit.
Infinite Banking Software is an indispensable tool for planning your personal finances while practicing the Infinite Banking Concept. By providing detailed calculations and visualizations of financial strategies, these tools help in making informed decisions, managing cash flow, and optimizing the benefits of whole life insurance policies. Understanding and utilizing these software tools can lead to more effective and personalized financial growth.
If you are interested in seeing how your own numbers look using many of the software and calculators mentioned here, please reach out to our Pro Client Guide and Authorized Infinite Banking Practitioner, Barry Brooksby.