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Nowlin & Associates Financial Planning
Hagler & Brocato, CPA's

Recommended Reading

How Privatized Banking Really Works
by By L. Carlos Lara and Robert P. Murphy, Ph.D.
A Path to Financial Peace of Mind 
by Dwayne Burnell, MBA

More Video Resources


Please select from our clients most frequently asked questions below.  If you have a question of your own please contact us!

How do I get started implementing this for my family or business?

The first step is to read our “textbook” Becoming Your Own Banker. After reading the book, set up a time with us to review the book and answer any questions that you might have. The final step is to see how the Infinite Banking Concept applies to you and if you qualify.


How does this compare to my 401(k)?

The Infinite Banking Concept

The Infinite Banking method gives you complete control over the money in your banking system. You can access your money when you want and you don't have to sell your assets to do so. You can even borrow against the money in your plan and allow your money to continue growing as though you never touched a dime of it. You receive the same guaranteed annual increase regardless of whether you have a loan. You determine your own loan repayment schedule. If you lose your job or an emergency arises and you have to reduce or skip a few payments, you won't have late fees, no collection agencies will harass you, and it won't affect your credit report. Loans that are never repaid will, of course, lower values. 

401(k) or Qualified Plan

If you need access to your money in a 401(k), you may be able to borrow money from it up to certain limits. This typically involves liquidating assets, and you'll stop earning interest and investment income on those funds. You are typically required to pay back your loans within 5 years, or the outstanding balance becomes taxable and you also have to pay a 10% penalty. 

ATTENTION: If you lose your job or leave your company for any reason (and you haven't reached age 591/2), in most cases you are required to pay any loans back - in full - with interest in 30 to 60 days, or you'll have to pay income taxes on it, plus a 10% penalty. 


What if I pay cash for everything, will this plan work for me?

Everything you buy you finance, either by paying interest to others or giving up interest by paying cash. The Infinite Banking Concept shows you how to avoid giving up interest while staying debt free. Read The Real Key to Creating Wealth for more information on this question. 


If this is so great why isn't everyone doing it?

This is a three part answer:

1.) The banks are doing it. It's called BOLI, Bank Owned Life Insurance. Banks lifeblood is its Tier One Capital, which is its core capital. The stronger the Tier One Capital the stronger the bank. It is the banks cushion in times of adversity and supports its balance sheet. Where banks are allowed to place this Tier One Capital is HIGHLY regulated. As of 2004, the General Accounting Office (GAO) found that the cash value of these BOLI's accounted for up to 40% of their Tier One Capital. This is a vital part of the bank’s investment strategy.

2.) Of the approximately 1,500 life insurance companies out there, only a handful offer a policy that has all the features required by The Infinite Banking Concept. Therefore, it's not even mentioned in most industry training programs.

3.) Another reason you may not have heard of The Infinite Banking Concept before could be the fact that an advisor who helps you implement this process will incur a 50-70% reduction in commission compared to traditional plans. 


How does this compare to stocks and mutual funds?

The Infinite Banking Concept 

1. Polices used in The Infinite Banking Concept receive a guaranteed increase every year. 

2. There is no loss of principal due to market downturn. 

3. You can know the minimum annual income you could take from your policy, and for how long you could take it. Your advisor will show you how much your financial picture could improve by adding this to your financial plan. 

4. Provides income tax-free death benefit, providing peace of mind for your family or heirs, if you were to pass away 

Stocks and Mutual Funds

1. There are no guarantees in the stock market. If you are like most people you have experienced the uncertainties associated with the recent market fluctuations. 

2. You can lose part your entire principal in a market downturn. 

3. There is no way to predict the value of your investment in 10 years, 20 years, or whenever you hope to retire, fund college, buy a car or start a business. The market can have a downturn at any time and undermine all your hard work and your best-laid plans. 

4. Only the current value of your investments would go to your loved ones. With the exception of Roth plan, taxes would be due and leave your loved ones with far less money. 

How does this compare to a Roth?

Some people have realized that, over a period of time, the tax-free compounding of your retirement savings could be far more than the up-front tax deduction Traditional IRA's and 401(k)’s receive. That's one reason for the popularity of Roth IRA's. Under the current tax law, Roth IRA's are taxed similarly to the policies used for The Infinite Banking Concept: The money that goes into the plan is taxed in the year in which it's contributed, and can then be accessed "along with the growth" without taxes due on it, if you follow certain guidelines. But that's pretty much where the similarities end. 

1.) Do you control the money in your plan? 

The Infinite Banking Concept Polices used in The Infinite Banking Concept give you complete control over the money in your plan. You can even borrow your equity whenever you want, and you don't have to sell your assets to do so. The money in your policy could continue to grow as though you never touched a dime of it. As a result, you have the ability to use your money and still have it working for you. You determine your own repayment schedule, and if you lose your job or an emergency arises and you have to reduce or skip a few payments, you won't have late fees, no collection agencies will harass you, and it won't affect your credit report. Loans that are never repaid will, of course, lower policy values. Roth Borrowing from your Roth IRA, or even using those funds as collateral for a loan, is considered a prohibited transaction and you'll owe taxes and penalties. Although you can withdraw the money you put in at any time without having to pay taxes, you will no longer be earning any interest or investment income on that money. 

2.) Can you take income from the plan when and how you want? 

The Infinite Banking Concept You can take income from your policy when and how you wish. There are no penalties for early, late or no withdrawals, and no minimum requirements. Roth Although you can withdraw the money you put in without having to pay any taxes or penalties, with a few exceptions there are penalties for withdrawing your earnings before you reach age 59 1/2. 

What are the risks involved when using the Infinite Banking process?

The biggest risk is you. This process requires discipline to pay yourself at least what you would have paid a third party when borrowing money to purchase cars, business equipment, homes, etc. If you aren't discipline or have a long range goal of being financially successful this plan is not for you.