Reasons Why Infinite Banking is the Best Option for You
When you do not have enough cash to handle some business or personal matters, you can consider getting a loan. During the repayment of the loans, they will need to pay back with the accumulated interest. Banks and other financial institutions make a profit from the interest that they get from the loans. With time, the borrower is the one who will lose. For you to avoid this, you need to consider infinite banking. With infinite banking, you will be able to borrow from yourself. Take an example of whole life insurance where you can borrow some amount from the premiums you have been paying. You thus will have many benefits that will be due to infinite banking, as given below.
It will necessary to consider infinite banking because it will mean the money that you borrow will not be taxed. You will borrow the money that is deducted from your income for the insurance policy. When you get your salary or wages, the taxes will have been deducted. Double taxation would occur if the amount that you borrow will be taxed.
You will benefit from infinite banking as it will have low interest rates that will not increase. The government decides the maximum interest rates that can be charged by money lenders. Many of these facilities will thus opt for the maximum. During the repayment of the loans, you will need to ensure that the amount will encompass the interest accrued. In infinite banking, the loans will be low because the insurance companies are not money lenders, and they thus will not change the rates.
The other thing that will be good about infinite banking is that you do not have to provide collateral. When you need to get a loan from the financial institutions, you should make sure that you have the security. The collateral is needed in case you default the payment of the loan. The benefit that is associated with infinite banking is that you do not require the collateral for the loan. It is because the money you borrow will be yours and thus no need for the security. It also does not require you to provide proof of employment.
When you consider infinite banking, you will be reinvesting in your money, which makes it a better investment. It is good to invest in an opportunity that will lead to better profits. You will have much that you earn for your money through infinite banking, which means that you will have much for your beneficiaries. The money that you give as interest will increase the dividends that you get.