Do you want perpetual wealth that continues growing in future generations?

https://www.youtube.com/watch?v=aqCY1qB8Lys

Today, we're continuing this power-packed series through Nelson Nash's famed book, Becoming Your Own Banker, as we discuss the benefits of buying life insurance for your grandchildren.

So if you want to see how thinking generationally is a long-term target on wealth that gives you the advantage so you can build more, how to transfer a wealth mindset to your kids and grandkids, and how to ensure wealth grows continuously ... tune in now!

Forestry Management and Infinite BankingBuilding a Long-Term System for Perpetual WealthGood Stewardship and Perpetual WealthBook A Strategy Call

Forestry Management and Infinite Banking

In Becoming Your Own Banker, Nelson Nash compares the banking function of whole life insurance to forestry management. Both are long-term processes that bear fruit for generations to come when you manage them properly. 

He expands on this by explaining how forestry works. If you want trees on a 40-year growth cycle, you have to divide your land into 40 even plots of 100 acres each. Every year, you’ll harvest whatever is on one 100-acre parcel of land, and replant it. That way, in 40 years, when you’ve harvested every parcel of land, you’ll be ready to harvest the very first plot all over again. You’re creating a sustainable, perpetual source of lumber, and therefore income. There are also some intermediate cuttings over the years to allow the strong trees better growth.

This can be likened to whole life insurance, where you’re “planting” an annual premium while you’re also growing your cash value each year. Every year it’s able to grow uninterrupted, and you can pass it on for generations. And the more it grows, the more you can use it to purchase new investments, assets, and other quality-of-life improvements. It’s a long-term, lifelong process with major benefits if you’re willing to see it through and be diligent about it. 

Building a Long-Term System for Perpetual Wealth

Whole life insurance is the preferred asset to execute the banking function because it’s long-term and has many guarantees. The policy loan function allows you to replenish your wealth, much like replanting your forest, while the death benefit provides the seed to the next generation. 

The reason term insurance can’t work is twofold: first, it isn’t permanent. Term insurance only stays in place for a set term of your life. Because of this, there is no cash value component, which is the second reason you cannot use term for the banking function. The cash value component of whole life insurance is like the equity of the death benefit. It’s a benefit to policyholders for placing so much money (and trust) with the insurance company. Since the death benefit is not guaranteed if you have term insurance, you can’t really build equity in it. 

This doesn’t mean that there’s no place for term insurance in your banking system. Many people choose to have convertible term insurance to supplement their whole life insurance policy. This guarantees that over some time, you can convert some of your temporary insurance into permanent insurance, without having to re-qualify. Even those who do not choose to convert the insurance may feel a sense of peace at having a little extra death benefit during certain periods of their life, like when their children are young. 

All of these decisions hinge on one thing: long-term planning and your ability to act for your future self. You cannot predict what will happen to you or your loved ones, however, you can prepare to be capable of overcoming whatever life throws at you. Customizing your banking system allows you to prepare for many outcomes. 

Good Stewardship and Perpetual Wealth

Just like with forestry, Infinite Banking requires good stewardship. If you don’t take measures to protect and maintain your forest plots, you run the risk of fires,