The Case for IBC

The Case for IBC, with Dr. Robert P. Murphy

Considering Infinite Banking, or IBC, but still a little skeptical?

In this episode, we’re talking with Dr. Robert P. Murphy, a free-market economist, who has testified before Congress on energy markets and monetary policy and has given many interviews on TV and radio. He is the author of hundreds of articles and several books on economic topics created for the layperson, including one of his most recent: The Case for IBC.

So if you want to hear from a highly respected economist perspective just why Infinite Banking works … tune in below!

In this episode on The Case for IBC, you’ll hear:

  • How the Nelson Nash Institute came to be
  • Common misconceptions about whole life insurance
  • What Dave Ramsey gets wrong about “buy term, invest the difference”
  • Why IBC is about more than just the rate of return
  • The future of dividend rates
  • And more!

The Nelson Nash Institute

[7:00] “Carlos and I wrote a book called, How Privatized Banking Really Works…. That phrase [Privatized Banking] was actually Carlos, his idea.”

[8:23] “If you’re doing IBC, you’re not contributing to the problem, because the Austrian view is commercial banking that expands and contracts the credit supply. So if you’re…financing your purchases via policy loans, then you’re not contributing to the boom/bust cycle in the Austrian view.” 

[8:58] “…Carlos and I were going around, giving presentations to the public and life insurance agents would hire us often to come do that, you know, presumably knowing that they were going to be able to sell more if we came and talked to a crowd about…the big picture here… And so over time we just realized this isn’t going to work. We need a more formal way of both, you know, training agents to make sure they know what Nelson’s principles are and how to design these policies correctly, but also so we feel comfortable… [putting] the public into the hands of certain life insurance professionals… So that was the birth of the IBC practitioners program.”

You can find out more about Nelson Nash here: Nelson Nash: The Father of Infinite Banking (IBC)

The Case for IBC

[13:30] “… often this concept clicks with [business owners] sooner than with other people, is [because of] the importance of cash flow. So for like a salaried employee, you know, they kind of know every month how much money is coming in the door, and then they have their bills. And they’ve just got to make sure… [they] spend less each month than what’s coming in.”

[15:20] “I came across a pretty sophisticated critique of IBC a while ago, from another economist, and he said, ‘You know, this concept actually makes sense. What they’re really doing here is using an asset as collateral to then borrow money from some other institution to finance their cash flow. And they happen to be using life insurance or using…the cash surrender value, and a dividend paying whole life insurance is the collateral… When in principle you could take your house, as long as you have a bunch of equity, and go to a commercial bank and take out either a home equity loan or a HELOC.'”

“And so… the concept the economist was arguing was, ‘It has nothing to do with life insurance, and the only reason they’re doing it with life insurance is to get the commission.'”

“So I go through and explain why, actually, that’s a perfect illustration of why Nelson was right to pick this vehicle or platform of a dividend paying whole life policy.”

Other Common Objections of IBC

[19:54] “So another common one is… ‘Oh everyone knows a whole life policy is a terrible place to put your money, you should buy term and invest the difference.’”

[20:47] “The way we put it is that the whole life insurance policies are the platform upon which IBC is implemented. So yeah, if people don’t want their foundation, then they’re going to be hesitant to step onto it.”

[22:06] “It’s going to be clear, we’re not arguing that you should never get a term policy… but virtually, you know, they are trying to make the other case saying that you should never get a whole life policy, it is always advantageous to buy term invest the difference…So the big issue is, it’s an apples to oranges comparison.”

The Future of Dividend Rates

[29:40] “My prediction is that the Feds are going to keep the interest rates low until the point at which the dollar starts significantly slipping against other currencies. And/or domestically, prices start rising such that…it’s too painful and they have to start ratcheting up rates to stem that.”

[30:20] “They can’t just keep interest rates at one percent, if price inflation is running at eight percent. They’d have to raise rates just like they did in the late 70s, early 80s.”

Closing Remarks

[38:00] “It’s not a get rich quick scheme, it’s a get rich slowly scheme… Like it’s amazing how much the thing grows. That’s basically just the power of compound interest.”

[38:30] “There are plenty of people who were up to their eyeballs in credit card or student loans or other types of debt. And they talked to somebody who knows how IBC works…[and they see] with the same cash flow, you can just rearrange what you’re doing and dig out of this much more quickly, and be on a better foundation. So I would just say to people, don’t think this is something that only pertains to wealthy people.”

Organize Your Finances or Get Life Insurance Today

Do you want to use Privatized Banking, alternative investments, or cash flow strategies to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We would love to help you.  

Book an Introductory Call with our team today

By the way, do you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth  … plus gives you the ability to have your money do 2 things at the same time, boosting your investment returns? 

Go to to learn more.

Thanks for Tuning In!

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Rachel Marshall

Rachel Marshall is the Co-Founder and Chief Financial Educator of The Money Advantage and President of Marshall's Insurance and Financial Services. She is known for making money simple, fun, and doable. Rachel has built a team of licensed professionals (investment advisors, insurance agents, attorneys, tax strategists) to help her clients create time and money freedom with cash flow strategies, Privatized Banking, and alternative investments. Rachel is the co-host of The Money Advantage podcast, the popular business and personal finance show. She teaches how to keep more of the money you make, protect it, and turn it into cash-flowing assets.
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