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Wesley Smith - Why Infinite Banking

Why I Use Infinite Banking, with Wesley Smith

It’s time to showcase another client who’s building an Infinite Banking System for himself and his family.

Meet Wesley Smith, real estate investor, business owner in the digital marketing space, husband, and dad. To find out why he’s been using Infinite Banking for the past 7 years, and how it’s helping him in his business, investments, and his family… tune in now!

Wesley’s Entrepreneurial Journey

Wes’s career launched with his dad’s plumbing company, where he stayed for three or four years. After that, he realized he wanted to get out into the world. His friend had a door-to-door sales job in telecommunications, making a pretty good salary. Wes knew it was his next step. 

[4:00] “I think that first sales job really solidified the fact that I wanted to be an entrepreneur… Just learning to be in that sink or swim environment from month to month to month—every month is a new month, right—is kind of what helps you learn what you need to be a business owner, in general.”

Over time, he learned he could also build some residual income from this work. Ultimately, this helped him get closer to where he wanted to be financially. But the entrepreneurial piece was still missing. This led Wes to invest in real estate. In order to advertise and maintain relationships with clients, Wes became proficient in all things digital marketing. His proficiency led him to open an agency around 2014 that caters to the tree service industry. 

Intro to Infinite Banking

Wes stumbled into the world of infinite banking almost by accident. About seven years ago, whole life insurance came up in conversation between Wes and his younger brother. Wes was recently married, and his son was just born, so he knew life insurance was a good thing to look into. After getting set up with an agent, he bought his first whole life insurance policy. 

[8:20] “We’re all just like conditioned to not even think about life insurance one bit until we’re married and have kids, then all of a sudden everybody’s beating their door down talking about life insurance to you.”

After paying a few premiums, Wes kept wondering where his premiums were going and what he was paying for. Although his agent answered his questions, he was still having trouble wrapping his brain around insurance. So he decided to do some research and learn everything he could about whole life insurance. This search led him to The Money Advantage, as well as some other sites, where he stumbled on the infinite banking concept

Why Infinite Banking?

[9:50] “Once I found that [infinite banking concept], and I ordered Nelson [Nash]’s book, Becoming Your Own Banker… it was as clear as day what I needed to be doing for the rest of my life with all of my savings.”

Part of the reason infinite banking appealed to Wes is that it’s flexible and liquid. He had been in corporate settings, with a 401k, where his money was locked away and inaccessible.

[10:14] “This is nice to have this [retirement] account over here, but I can’t do anything with this money for the next 35-40 years. What am I going to do if I come across a real estate deal and I need access to 50 or 100 thousand, or whatever the case may be? You just really can’t do that with a retirement account like you can with infinite banking policies.”

Another benefit to infinite banking, as Wes sees it, is the ability to grow money even when you’re dormant or waiting for your next investment. The cash value of your policy puts you in a position of cash to jump on opportunities. But even when you’re waiting, your policy is growing and doing more than a typical savings account. 

[13:22] “… With infinite banking policies, you’re at least earning a good four or five percent tax-deferred every year without doing anything… Plus, you’re getting the death benefit, you’re getting everything else including the liquidity.”

Why Multiple Infinite Banking Policies?

[14:16] “As I kept reading and increasing my knowledge base on infinite banking concept, it’s really—it is infinite. You can’t really have too many policies. Like Nelson says, you can’t get too much insurance past the underwriters, they won’t let you get it, anyway. So you have to qualify and you can keep trying to get more and more.” 

A portfolio of infinite banking policies can continue to increase your liquid savings and provide you with more opportunities. In fact, as your income, your savings ability, or both increase, the amount of insurance you can buy increases. If you’re using an infinite banking strategy well, the case for buying more insurance as you grow is compelling. This also ensures that you pass your full Human Life Value on to your heirs. 

[15:14] “The way I’ve done it is, just every time that I have an additional cash flow, I just make sure I open up a new policy. Because of the policies that you opened up several years prior… if you continue to fund those with your base premium plus the paid-up additions, you’re really funding them max over the first several years. So if you get to a point where maybe you have reduced cash flow for a year or two, it’s not going to be a problem. You’ve already been funding those for several years.”

[15:48] “Once you wrap your head around how to use them… they’re very versatile.”

How Wes Uses His Infinite Banking Policies

Apart from investment opportunities, or opportunities for cash flow, Wes also uses his infinite banking policies in his everyday life. His family bought a new house a few years ago, and a policy loan helped them to remove 6-8 trees and lay sod down. His family can now pay back that loan in a way that works for them. 

To manage his policies, Wes ensures that he always has enough money in savings to pay his base premiums. Then, the cash value is available when they need it for home renovations, vacations, and other costs that benefit the family.

[16:50] “The greatest thing about the policy loan feature—and you guys have talked about this 100 times—there is no payback schedule. There is no fixed monthly payment that I’ve got to commit to like there would be with a home equity line of credit or a personal loan.”

Of course, infinite banking policies also give Wes the opportunity to invest in cash-flowing investments. He often uses a policy loan, when an opportunity arises, to make a down payment on the property. The cash flow on the property can then pay back the policy loan and the mortgage. Then, when the policy loan is paid off, he gets the full benefit of his cash value again, as well as cash flow he can enjoy. 

Infinite Banking and Family Dynamics

Another benefit of infinite banking, for Wes and his family, is that it can help involve each person. Multiple members of the family can use the cash value to learn financial principles and fund their own endeavors. Each family member can also potentially have a policy, as the insured, to contribute to the “family bank.”

[27:45] “When you look at these illustrations and how long they’re going to be in play you say, well I’m just not going to be afraid to put all of my money in these things… These also create individual accounts where—I’ve read a few books too, as well—you can kind of earmark one of these policies for your car loans when you go pay cash for a car… Another one may be college funding, another one may be home repairs, home renovations.”

This can help teens buy their first car, go to college, start a business, and more. As a cash warehouse, life insurance creates control, as well as the freedom to change your mind. You may decide that the policy you have earmarked for one purpose is no longer necessary—great! Now you can use it somewhere else. There are many financial vehicles that only serve one purpose and leave no room for you to change your mind.

Wes even has ideas for how he may use his policies decades in the future, and what he might do if the unexpected occurs. He’s a true long-game thinker and understands the benefits that life insurance can have on his life and family both now and later. 

[31:05] “It just gives you more control and flexibility for your future, honestly. So that’s why I do it, and I know why I’m doing it.”

Teaching the Next Generation

Wes asserts that teaching his children about infinite banking, and helping them develop a firm understanding of the financial principles of IBC, are important to him.

[39:30] “Yes, I want to teach my kids how to use this infinite banking strategy, and I do a lot of training videos, just screen share videos and things like that. So I’m going to probably do that as they get older, and show them how to look at an illustration, how to take a policy loan, how to pay that back, what it looks like over 50-70 years.”

By preparing them young, and helping them learn good financial habits early, he hopes he can inspire them to start their own policies sooner. 

[40:00] “You always wish you could have started this sooner once you kind of figure it out and you really start seeing it for what it is. It’s a whole life contract that’s beneficial to you the entire way, not just when you’re 59 and a half, not just when you’re 70 and you’ve got to take required minimum distributions.”

Wes’ Tips for Business Owners

As a business owner and digital marketer, Wes’ best advice for any service-oriented entrepreneur is to have an excellent website. The key is to make sure you highlight your business properly on the website—including who you are and what you do. Having your contact information or scheduling software where it’s easy to find is also helpful. 

You’ll also want to ensure that your site looks good on a mobile device, and is optimized for mobile searches. Most people are on their phones all day, so having a mobile-friendly site can make or break things. 

He also emphasizes the importance of “good old-fashioned customer service.” Wes believes that while automation is important, there’s a point at which you can automate too far. Many people today appreciate being able to work with a human being when possible. And good customer service can create real loyalty. 

Book A Strategy Call

Do you want 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 can help!  Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.

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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