FoA 384: Infinite Banking and Farming Without the Bank With Mary Jo Irmen

Put AI to work on your farm: https://farmwave.io/

Farming Without The Bank: https://www.farmingwithoutthebank.com/

"Becoming Your Own Banker" by R. Nelson Nash

Farming Without The Bank Podcast

Mary Jo Irmen is the author of the book Farming Without the Bank and a Infinite Banking Concept Practitioner who has set out to change how the farming industry is financed. She has helped farmers for 13 yrs see that there are financial solutions for them and the next generations. Mary Jo's mission is to take a 100 year old financial process and turn it around by making the bank plan B rather than plan A, give farmers back control, and allowing the next generation to take over without having to buy the farm from the bank with each generation.

It’s important for me to note here, that I’m coming to this interview with a personal interest in this infinite banking concept. I’m not a farmer, but I see where it might be a good addition to my personal wealth-building strategy, and I also see where people who rely on banking even more than I do, like farmers, would benefit even more. That said, I’m not a financial or insurance expert. This is not advice. Please talk to an expert before making any financial decisions. This podcast is to try to better understand the infinite banking concept and the tools that go into building your own infinite bank. 

Let’s start with the 101 version. Here’s how I understand it: We all use banks - well most of us. We all have a general sense of how they make money - and we know they make that money from us. So let’s say for a minute that we see all the money that banks siphon from us through the course of our normal financial lives and we think,  “wouldn’t it be nice if we could be our own bank and keep more of that money for ourselves?” 

You might think “sure that’s possible if you’re sitting on a big chunk of money that you can just borrow from and lend to, but what about the rest of us?”

In the process of accumulating wealth maybe you have a 401k, maybe some real estate, but those aren’t assets designed to be used as a bank to borrow cash from whenever you need it and pay that money back whenever you can. 

However, there’s another type of asset that is better designed to be used as both a wealth-building tool and a bank. That asset is a certain type of whole life insurance through a dividend paying mutually owned life insurance company. If you’re first hearing about this, it may sound weird. It definitely has taken me a long time to try to get my head around this. But there are aspects of these policies that give you just the flexibility you need to become your own bank: making loans to yourself, repaying yourself, and still accumulating wealth over time. Our guest here has spent 13 years not only doing this, but helping others do the same. She even wrote the book about it, called Farming Without The Bank. 

This may be an episode you want to listen to multiple times to try to absorb. Or maybe you’re a lot quicker than me and you’ll get it the first time. There are other resources that we mention in the show and I link to in the show notes, most notably the book “Becoming Your Own Banker” by Nelson Nash, who created this concept.