10 Questions with Nelson Nash
This interview was conducted by ChooseFinancialFreedom.com
R. Nelson Nash discovered the formula to building wealth using the sound principles of an industry that has been deemed the foundation of the United States economy: Banking. He is the creator of the Infinite Banking Concept and renowned author of Becoming Your Own Banker. This concept uses dividend paying whole life insurance policies to create a personal bank.
1. Whole life insurance has been around for over 200 years. Yet, we still see strong hesitation to purchase this type of product. What do you feel are the biggest misconceptions of whole life insurance?.
The general public in America knows practically nothing about dividend-paying whole life insurance. It is all a matter of getting interested people educated about this wonderful idea.
2. In your book, you say that one’s infinite bank can take up to 7 years to capitalize. What do you suggest for individuals who are retiring today?
I suggest they attend one of my 10-hour seminars and get fully informed about what is possible. Please note that the “capitalization phase” in the equipment financing section of my book is only four years. Furthermore, I demonstrate that the policy can be used much earlier than that.
3. There are a lot of financial pundits out there that suggest buying term life insurance and investing the difference. What do you tell people when you hear this strategy?
I suggest they study the sixteen books that I recommend for people who are interested in the stock market. When they finish them, they are now qualified to talk about “Investments.”
4. There are numerous advantages to your Infinite Banking Concept such as the recapturing interest paid to other financial institutions, a growing death benefit, and the ability to leave behind a legacy. What, if any, are the disadvantages or drawbacks of this concept?
The disadvantages or drawbacks would be in not participating in the process!
5. Recently, we have seen many commercial banks shut down or acquired due to questionable financial decisions. This is causing a lot of people to be wary of where they keep their money. Can you speak to the stability of life insurance companies?
What is the most disastrous thing that has happened in the financial world in the last 100 years? Answer: The Great Depression. During that time life insurance companies were stronger than any other thing.
6. We enjoy the ability to access our cash value on a tax-free basis. Yet, I often see comments from naysayers like, “When the government finds out, they’ll change the tax laws.” Although tax laws are uncertain, are you confident that these tax advantages will stay in place for whole life insurance long term?
Life insurance is not a creature of the IRS Code (which has been around only since 1913). Life insurance has been around for about 200 years. Pension plans, IRA’s, HR-10 plans, 401-k plans, etc. are all a function of the IRS code. They are all “exceptions to the IRS code.” Please notice what is now happening to all those sort of plans. Yet, my life insurance policies continue to grow. (Please study the attachments.)
7. What would you say is most important in making one’s infinite bank successful and why?
Read my book. Do what it says. It is built on firm principles that have stood the test of time.
8. In your seminars and in your book, you show examples of financing cars and equipment. Are there any “out of the box” things you have done, or have seen people do, in utilizing an infinite bank?
It is limited only to one’s imagination. Again, attend one of my seminars and you will see any number of examples.
9. I’ve read your book and experienced your teaching in a live setting, so I can appreciate your humor. I think it would be entertaining to our readers if we play “word association”. I give a word, and you give your immediate response.
- Term insurance – Nonsense!
- 401k – Absurd!
- Social Security – Criminal idea!
- IRS – Equally criminal!
10. Today, a lot of people are fearful of the current economy. I believe a lot of it has to do with the media. Do you have any last words of advice you would like to give to our readers?
- Subscribe to Daily Reckoning (no cost) and read Bill Bonner every day.
- Read items on www.lewrockwell.com every day.
- Also, www.mises.org and www.fee.org.
- Read the 16 books for those interested in the stock market.