If you are working with a financial planner, asking some of the following tax questions may assist you in locating a truly innovative person to work with. By discussing some of the following questions, you will be demonstrating that you are on top of one of the newest strategies being use to save money spent on borrowing and taxes.
First, ask your financial advisor if he knows who R. Nelson Nash was, and if so has he read Mr. Nash’s book, Infinite Banking Concept. This book was written about 25 years ago and formed the basis of creating the innovative Infinite Banking system. Hopefully your advisor has been introduced to this book.
Next, ask if he or she knows what structure is used to set up one of these “personal banks.” If they are informed, the answer will be that a special whole life insurance policy is sold by a mutual life insurance company. The policy has been altered to reduce the cost by lowering the life insurance amount offered, increasing the policy’s ability to create cash value quickly.
After that, see if your professional knows what the purpose of this system is. Again, the informed counselor will be able to tell you that the goal is to create a special place you can safely invest your money, be in control of it, and also borrow money yourself. This is where Mr. Nash came up with the term “infinite banking.” You are creating both an investing and borrowing system that benefits from your activity.
Lastly ask how the system might help with lowering your tax bill. The answer in this case is that when the policy investment returns come back to you, they can pay in dividends, which have a special status tax-wise.
So, as you can see if you ask these tax questions you may find out if you are dealing with a very well informed financial professional, or not.
For more details: www.thepersonalbanker.com
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