In part 8 of the "Becoming Your Own Banker" series, we dive deep into how to save taxes by implementing the Infinite Banking Concept in your financial life.
https://www.youtube.com/watch?v=SNusw15mzyM
During our discussion, we dig into the concepts of legal plunder, taxation, and the triple tax advantage of whole life insurance. We also share an enlightening live Q&A session on financial concerns, emphasizing the importance of asking questions and modeling successful behaviors. Nelson Nash was a master at getting people to think and develop a growth mindset; we invite you to join us as we unpack his wisdom and learn together.
Don't miss this episode, as we share valuable insights on money, human nature, and the world around us, inspired by Nelson Nash's incredible book, Becoming Your Own Banker.
Join us as we show you how you can use dividend-paying whole life insurance to keep more of your money working for you and continue the conversation about the Infinite Banking Concept through Nelson Nash's book, "Becoming Your Own Banker," today!
Parkinson’s LawWillie Sutton’s LawTax Confusion and ManipulationHow to Save Taxes?Whole Life Insurance is Tax-AdvantagedBook A Strategy Call
Parkinson’s Law
Parkinson’s Law, which Nelson mentions in his book, suggests that it’s in our human nature to spend everything we make. It’s something that every single person struggles with—even our team. And it takes a daily, conscious effort not to spend.
But one of the great benefits of IBC is that you have a place to store your savings that feels like a bill–your premiums. This mechanic alone can help you to overcome Parkinson’s law and save more money, though you’ll still have to work on it in your daily life.
Willie Sutton’s Law
In Nelson’s book, Becoming Your Own Banker, he also mentions Willie Sutton’s Law. This is the law that whenever you have capital, someone is going to want to steal it. This could be a person in your life, but it also pertains to institutions: the IRS, creditors, fees, and much more.
There’s an Aesop fable that describes this beautifully. A colony of ants worked hard all summer to build up their food stores, while the grasshopper scoffed at any hard work. But when winter rolled around, the ants were happy, and the grasshopper was not—he didn’t have anything to eat. So he sought to steal from the ants.
The government isn’t labor-producing, and so they steal from working people by way of taxation. This may be controversial, but Nelson even says that the biggest thief in the world is the IRS.
[20:43] “If the law takes from some people what belongs to them and gives it to other people to whom it doesn’t belong, the definition of that is theft or legal plunder.”
Tax Confusion and Manipulation
Over the years, plans and products have popped up as a proposed solution to taxation. A 401k and Roth IRA are examples of this. The problem is that the government is responsible for that taxation in the first place. And it seems to be that they’re setting things up so that they always benefit.
[30:20] “If you have a problem of government taxation, and the government is creating the solution to the problem that we have, how can we trust that the… entity that is creating the problem is also creating a solution that really is in our best interest?”
The answer is, you can’t fully trust the solution provided by the government, because they created the problem. And in the end, you still pay taxes when you opt into a qualified plan. The question just becomes when, and qualified plans ensure that you just pay them later.
How to Save Taxes?
So if taxation is inevitable in some ways, how do you come out on top? The solution is to take control whenever possible. And one way to do that is to stop storing your cash in banks and government-run products. Infinite Banking helps you preserve as much wealth as possible.
[32:13] “This whole idea of Infinite Banking is a powerful solut...
