Considering Infinite Banking, got questions? We love your questions because we know that gaining clarity and getting answers frees you up to make decisions about your financial life. And chances are if you’re asking, someone else is too! Today, we're tackling audience questions on inflation, pensions, and infinite banking.

https://www.youtube.com/watch?v=9Hsoxa0Q3Pg

To get more clarity on common questions we get from our tribe, tune in now!

Table of contentsHow Do You Weather the Current Economy?How Do You Track Borrowed Funds?What Are the MEC Guidelines on Single Premium Life Insurance?Think Long-TermAre IBC Policies Inflation-Proof?How Do You Maximize Your Pension Plan?When Can You Borrow from Your Policy?Why Do You Lose Control When You Pay Back Your Mortgage?Do the Cash Value and Death Benefit Both Get Paid at Death?Does Infinite Banking Work Internationally?Do I Have to Take a Policy Loan if I Have Other Options?Book A Strategy Call

How do you weather the current economy?This is a good time to be in a position of cash and wait for the right opportunity. This means raising your standards and only choosing high-caliber deals that align with your values. This is also a good time to innovate in your field.

How Do You Weather the Current Economy?

To be more specific, this listener asked how they can navigate the current economy and also create passive income within a year. Is this possible? 

Getting capital within a year may be difficult because the Fed is tightening up on capital. This is part of the reason we’re looking at a recession now. Remember that “opportunity seeks liquidity,” as Nelson Nash would say. Don’t feel like you need to deploy capital right now. Since the cost of capital is increasing, you want to wait for the right deal, not just any deal. It’s good to be smart and hang onto your capital until you find something that meets all your standards. 

This is also a good time to network and connect with other professionals that you can learn from. Be sure you’re connecting with high-caliber people that have good advice that aligns with your values.

You can also look at your current career path or income stream and seek ways to increase that revenue now. That doesn’t necessarily mean investing. It can also mean expanding your offerings, pivoting to fit the market, and improving your services. A recession is a long game, so you need to think about the bigger picture as you navigate this time. Short-term decision-making won’t serve you in this economic climate.

How Do You Track Borrowed Funds?

Whether you have a large portfolio of policies or just one policy, you might have some loans you want to track. Staying organized can help you with your due diligence, however, don’t get too bogged down with the minute details.

One way you can keep track of things is by opening a separate bank account. When you take a loan, put the money into that one account, separate from your other money. Then pay for the investment or whatever you’re doing from the new account. Then send the cash flow from the investment back into that checking account. You can then use this as the fund with which to pay back the policy loan. This way, everything is organized, yet you don’t have to get into the weeds to track it all. 

If you’re really picky about it, you can have multiple accounts, one for every loan or investment. Whatever you do, make sure it works for you and makes things easier, not harder. 

What Are the MEC Guidelines on Single Premium Life Insurance?

This viewer asked about the guidelines for Modified Endowment Contracts (MECs), and whether there is some benefit for churches or non-profit organizations. 

A MEC policy is a policy that has been overfunded in the early years and loses its designation as life insurance. This is an IRS guideline to prevent people from laundering money or using life insurance as a tax shelter. When a policy becomes a MEC,