The Five Rules of IBC (Infinite Banking Concept) – Nelson Nash's Practical Guidelines

Host: Michael DuryeaEpisode Focus: An in-depth exploration of R. Nelson Nash's five core rules for successfully implementing the Infinite Banking Concept (IBC), drawn from his book Becoming Your Own Banker. Michael shares personal insights, real-world analogies, and a bonus rule Nelson added later in life.

Key Theme: Infinite Banking isn't just about life insurance policies—it's a mindset shift toward long-term thinking, and becoming your own banker. Good ideas without action are meaningless; these rules provide the practical framework to put IBC into practice.

1. Think Long RangeSuccess in any area—business, parenting, health, finances—comes from long-term thinking, not short-term fixes.
2. Don't Be Afraid to CapitalizeThe biggest barrier to IBC is "fear of premium."
3. Don't Steal the PeasReference to the "Grocery Store Chapter" in Nash's book.
4. Don't Do Business with BanksMichael's nuanced take: He's not 100% opposed but prioritizes building your own banking system so banks aren't your only option.
5. Rethink Your ThinkingMost people don't change their mind about anything in 10 years—tragic in a world of vast unknown knowledge.

Bonus Rule #6: Be Prepared for Windfalls(Added by Nelson later in life, per David Stearns/Nelson Nash Institute references)

• Life brings unexpected capital (inheritance, bonus, business sale).
• Prepare "holes" in policies: Carry strategic policy loan balances (e.g., Michael's ~$285k outstanding) to repay with windfalls, or design policies for large/long-term Paid-Up Additions (PUAs).
• Avoid tiny base premiums (short-term thinking)—larger base premiums allow bigger PUAs for longer.
• Maturity in IBC: People grow comfortable with bigger premiums, larger loans, and long-term courage.

Additional Insights from Michael

• Community matters: "Content is common, community is rare."
• Evolution: Beginners fear big premiums/loans (short-term); experienced practitioners embrace them (long-term growth).
• Parallels: Long-term thinking applies to parenting, faith, and life—quick fixes rarely win.
• Recommended: Re-read the Grocery Store Chapter; listen to Michael's episode #43 ("How Interest Really Works in IBC").

Nelson Nash's Five Rules of Infinite Banking (Plus Bonus Rule)