Why Infinite Banking
There are multiple reasons why Infinite Banking should be more seriously considered by Americans.
1. A recent Vanguard report shows Americans at all income levels are on track to fall short of what they need for retirement.
2. According to FINRA’s report on “The State of U.S. Financial Capability”, nearly 51% of Americans believe they will run out of money once they are no longer earning a paycheck.
3. As of January 2025, half of American adults have $500 or less in savings, and 39% have less than $250.
4. Bankrate reports that 1 in 5 Americans regret not saving for retirement earlier.
5. According to the Federals Reserve Bank of St. Louis, the average American household will pay $1,025,823 in interest over their lifetime.
6. Traditional IRAs and 401(k) plans are taxed as ordinary income in retirement making these plans less desirable than income derived from other plans which are not taxable.
7. Nearly 70% of millennials expect to receive an inheritance yet only 40% of their parents plan to leave anything for their children.
Infinite Banking is a simple process which, when followed, recovers the interest, and the cost of things purchased, over time. The process of Infinite Banking overcomes the financial glitches listed above, while providing a hedge against inflation and building financial stability, sustainability and generational wealth. For these reasons alone, Infinite Banking, needs more serious attention by Americans.
The cost of nearly everything continues to rise. Accordingly, The National Bureau of Economic Research has shown, using dynamic models of health, mortality and out-of-pocket spending, those over 70 years of age will spend at least $122,000 over the remainder of their life.
Infinite Banking solves this dilemma because the process itself recovers the cost of things purchased and reduces the probability of everything being spent leaving nothing for an inheritance.
Northwestern Mutual Planning and Progress Study 2024, showed that Boomers have, on average, only $120,300 saved for retirement yet believe they will need $870,000. Gen X has, on average, only $108,600 saved for retirement but believe they will need $1.45million, while Millennials and Gen Z believe they will need $1.6 million for retirement, yet only have between $22,800 and $62,600 saved for that purpose.
The process of Infinite Banking increases cash flow, both now and in retirement, and the sooner the process is adopted, the better this cash flow becomes.
Every dollar reserved in the Infinite Banking process, can be leveraged to recover the cost of things purchased even while those reserve dollars keep earning a compounding rate of return. The more money kept in Infinite Banking reserves, the more money which can be used to recover the cost of things purchased.
Why isn’t Infinite Banking used by more people and business owners?
1. Most people don’t think, or understand, how banks make large returns by lending money, which belongs to others, so they fail to appreciate how Infinite Banking could help them earn larger returns.
2. There is no incentive for financial planners, CPAs or investment advisers, to educate or promote Infinite Banking.
3. Banks, and other financial lending institutions, prefer to keep the profits for themselves rather than share those profit with others.
4. Too much emphasis on rates of return instead of managing cash flow.
5. Hoping large profits can be generated over short periods of time with little effort and/or minimal savings.
6. Procrastination.
7. Allowing doubt and confusion to displace the acquisition of knowledge and the work necessary to manage cash flow like a banker.
All of these, and more, are reasons why Infinite Banking is not more commonly used. Yet those who are actively using Infinite Banking continue to appreciate and praise the process which has allowed them to keep more of their money and generate higher profits while recovering the cost of things purchased.