Introduction & The Asset
What We Covered
Understanding Loan Repayments & Policy Instructions (starts at 00:00 mins)
- When sending funds, always include the policy number and specify clearly: loan repayment, premium, or PUA.
- Loan repayments go to principal first; interest is tracked daily but charged annually.
- Incorrect labeling (e.g., calling a loan repayment a “premium”) can lead to misapplied funds.
Using Other Assets to Start or Sustain a Policy (starts at 07:30 mins)
- You can use assets like RRSPs or investments, but must plan for long-term sustainability.
- Goal isn’t to stop paying premiums, but to maintain them with growing internal resources.
- Relying solely on policy cash values for future premiums may reduce growth and flexibility.
Why This Is Important (woven throughout; emphasized at 04:35 & 09:30 mins)
- Proper instructions protect your policy and avoid delays or errors.
- Strategic funding keeps your system sustainable even when your income changes.
- Building the right mindset is essential to fully benefit from Infinite Banking.
Practice Tips (starts at 10:47 mins)
- Revisit Wealth on Main Street – Episode 100 for clarity on loan taxation.
- Read or re-read page 85 of Nelson Nash’s book to reinforce key thinking.
- Have regular reviews with your coach to ensure alignment on contributions and strategy.