https://www.youtube.com/watch?v=Nd1Q31lCczw
Are you a wealth creator with a need to have access to cash in the safest way that puts you in control? Velocity Banking shows up again and again as a solution to pay off your home faster and save interest. It even appears as the ideal way to store up equity in your house to use for investing. And, to add confusion, it sounds a lot like Infinite Banking, with a similar objective of taking the banking function into your own hands, so you achieve independence from the bank profiting on your money and requiring their permission for you to use it.
To further muddy the waters, Nelson Nash’s book, Becoming Your Own Banker, is often cited as the foundation for both strategies. (However, Nelson wrote the book as the foundation for the Infinite Banking Concept, which he promoted through the Nelson Nash Institute.)
But what is the Velocity Banking strategy, and what are the risks? How does it compare to Infinite Banking? And which approach gives you more control?
This episode is for every wealth creator who wants to have access to cash in the safest way that puts you in control, so you’ll never get caught in a cash crunch.
Today, we’ll reveal the three reasons Velocity Banking is a poor alternative to Infinite Banking for building investible capital.
Velocity Banking doesn’t provide safety
Velocity Banking doesn’t guarantee access to your cash
Velocity Banking doesn’t give you a rate of return
Table of contentsWhere The Infinite Banking Concept Fits into Your Cash Flow SystemFirst, What Is Infinite Banking?And What Is Velocity Banking?Velocity Banking vs Infinite Banking: The Single Clarifying Question You NeedSTOP. Before you read further, you have to know this:Here’s Your Quick Glance Comparison Between Velocity Banking and Infinite BankingThe Underlying Assumptions of Velocity BankingFinancial Principles and Truths That Put You in ControlLiability ≠ DebtDebt Payoff Should Be StrategicSaving Interest ≠ ControlHome Equity ≠ SavingsVelocity Banking Doesn’t Provide SafetyVelocity Banking Doesn’t Guarantee Access to Your CashYou Can Only Access Equity During the Draw PeriodThe Bank Can Freeze or Reduce Your Credit LineInfinite Banking Gives the First Right of Access to PolicyholdersVelocity Banking Doesn’t Give You A Rate of ReturnInfinite Banking Allows You to Earn A Returns on the Same Money In 2 Places at the Same TimeHow Infinite Banking Puts You in ControlFind Out More
Where The Infinite Banking Concept Fits into Your Cash Flow System
The Infinite Banking Concept (also known as Privatized Banking) is just one step in the greater Cash Flow System.
It’s the peanut butter to your cash flow sandwich.
While it’s nestled into Stage 2, Protection, it also improves everything else around it. Infinite Banking helps you keep more of the money you make in Stage 1, amplify your cash-flowing asset strategy in Stage 3, and accelerate your Time and Money Freedom.
First, What Is Infinite Banking?
Infinite Banking is a strategy of using a specially designed, dividend-paying, high cash value whole life insurance policy with a mutual company as a place to store cash. As you build up cash value, you have access to use it through withdrawals or policy loans.
The result of Infinite Banking is that your cash flow, or surplus, goes into a life insurance policy, where it is stored in cash value.
Here’s how you can find out more about Infinite Banking, the kind of life insurance policy that works for this strategy, and how to get high cash value and long-term growth.
And What Is Velocity Banking?
In short, Velocity Banking is a strategy of using a line of credit to pay off your house faster, while saving interest.
The strategy includes variations such as opening a 0% interest credit card and moving balances of debt from other liabilities to the credit card and then paying off the credit card fast,
