The Gas Station Story That Reveals a Common Money Mistake

Let me paint a picture for you.

https://www.youtube.com/live/uqGN5Sz9tJg

You’re driving down the highway and see gas at $3.00 a gallon. Three miles later, you spot it for $2.97. You think, "Yes! A deal!" So you turn around, drive the extra six miles, and save... 30 cents.

Except you used 40 cents of gas to get there.

This is the kind of logic many people use when comparing Infinite Banking vs Index Funds. It’s a hyper-focus on rate of return, while missing the bigger picture of financial control, access, and long-term strategy.

So let’s talk about it.

The Gas Station Story That Reveals a Common Money MistakeRate of Return Isn’t the Whole StoryInfinite Banking vs Index Funds: What Are We Actually Comparing?Why Rate of Return Isn’t the Only FactorUnderstanding the Purpose of Your DollarsInfinite Banking Is About Ownership and LeverageInterrupting Compounding Is the Real CostControl vs Performance: What Matters Most?Infinite Banking vs Index Funds Is the Wrong ComparisonListen to the Full Podcast EpisodeBook A Strategy CallFAQ: Infinite Banking vs Index FundsQ: Are index funds better than Infinite Banking?Q: Can I use both Infinite Banking and index funds?Q: Does Infinite Banking have a good rate of return?Q: Is Infinite Banking risky?

Rate of Return Isn’t the Whole Story

There’s a conversation happening everywhere in the financial world: Should I use Infinite Banking or just invest in an index fund?

Maybe you've asked this question yourself. You’ve heard someone say, "Wouldn’t I make more money if I just put it in an S&P 500 index fund?"

This comparison sounds reasonable — until you realize it’s like comparing a hammer to a screwdriver and asking, "Which one builds a better house?"

The truth? You're asking the wrong question.

In this article, you’ll learn:

Why comparing Infinite Banking to index funds is fundamentally flawed

The purpose and role of each strategy

How to think like a wealth creator, not just a rate chaser

Why long-term control beats short-term returns

Let’s flip the script and empower you to take control of your financial life—with clarity, confidence, and a legacy mindset.

Infinite Banking vs Index Funds: What Are We Actually Comparing?

Here’s where we start: Infinite Banking is not an investment.

It’s a cash flow system, a capital control strategy, a way to reclaim the banking function in your life. It uses a specially designed, dividend-paying whole life insurance policy as the tool—but Infinite Banking is the process.

Index funds, on the other hand, are investments. They're baskets of stocks that mirror the market—the S&P 500, the Russell 2000, etc. The goal of an index fund is growth through market performance.

So when someone says, "But the market earns more than whole life insurance," they’re missing the point. We’re not solving the same problem.

Infinite Banking solves for control of capital. Index funds solve for growth.

Why Rate of Return Isn’t the Only Factor

We get it. Everyone wants to know their ROI. But when that becomes your only filter, you lose sight of what really matters.

Consider this: When you access money from an index fund, you sell shares. You interrupt compounding. You lose growth potential.

With Infinite Banking, you borrow against your cash value—without interrupting growth. That means your money continues to earn even while you're using it.

"You’re always paying interest. Either to someone else, or by giving up what you could have earned on your own capital." — Bruce Wehner

When you control the banking function, you stop giving away the opportunity to earn. And that’s where legacy wealth starts.

Understanding the Purpose of Your Dollars

All money has a job. We teach our clients to classify money into three roles:

Safety

Liquidity

Growth

Most people try to make every dollar do all three. That never works.