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Bank on yourself – Strategy facts for Canadians

Bank on Yourself is an investment strategy that is based on the process of Becoming Your Own Banker, The Infinite Banking Concept. The essence is to recapture that interest that one pays to Banks and to finance companies for all the things one needs over their lifetime, such as Cars, Homes, Investment Opportunities, Business Equipment, Business Expansion, and much more.

Bank on Yourself translates to capitalizing a participating dividend paying whole life insurance policy (or system of policies) by paying premiums, and taking advantage of the daily accumulating cash value as collateral for policy loans, a preferred retirement income, and anything else that you would otherwise pay cash, lease or finance throughout your lifetime.

By implementing the process properly, you can create a peaceful, stress free life and be in a position of absolute control financially.

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Advantages of the bank on yourself method


The tool used to implement the strategy is a participating dividend paying whole life policy (or system of policies).  Because it is a unilateral binding contract, there is no investment risk.  100% of the risk is with the Life Insurance Company and not the Policy Owner.  In Canada, the Life Insurance Company contractually guarantees that the total cash value and the total death benefit will be the same by age 100 of the life insured.  That means daily cash value accumulation.  In addition the policy is participating, which means that you become a part owner of the Life Insurance company and “participate” in the divisible surplus generated.  When dividends are used to purchase more paid up death benefit at no additional cost, there is no taxable event triggered.  Each year dividends are declared, they are contractually guaranteed to be paid, cannot be repossessed or lose value. 


We all know that we are supposed to have money saved for our retirement needs, but most people have little to no understanding where their money is accumulating and more important, the characteristics of the financial product(s) such as risk, volatility, access, tax consequences.  No financial product is perfect, and if it existed, it would take a lot of energy and time to discover it yourself.  But with the Bank on Yourself method, you are assured of a secure financial future with no uncertainty.  What we’re discussing is a process that is implemented using a uniquely designed financial tool.

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Ease of access to money when you need it.
Let’s presume that you own a home free and clear and it is valued at $1,000,000. If you needed to tap into the equity of your home, you’ve got to get past the gatekeeper at the bank by filling out a lengthy, nosey credit application, prove the value of the property, prove that you can make payments, and if you did get approved, the bank would lend a maximum of 65% (sixty-five) loan to value. Hardly convenient.
Let’s presume that you had $1,000,000 of cash value inside of a participating dividend paying whole life policy. If you visited the same bank and also qualified, the bank would lend you a MINIMUM of 90% (ninety) of the daily increasing value and expect no repayment until you die. That’s not only convenient, it’s total and absolute control.  And what does that say about the strength of each asset in the eyes of the bank?

Tax Advantages

There are two certainties in life … (1) death and (2) taxes. Death is the only one that doesn’t get worse each time Politicians meet.
Your money must reside somewhere. When the government creates a problem (too much taxation), and then turns around and grants you an exception to the problem they created by allowing you to put money into a tax qualified plan like a RRSP, aren’t you just a little bit suspicious that you’re being manipulated? These programs were created under the guise of giving you a break. If the government really wanted to give you a break, all they need to do is cut the taxes.

Here’s a contrast.

When you put money into plans like RRSP’s, it is a creature of the tax code and involves handing your money over to someone else who thinks they can do better with it than you can. There are no guarantees. And you’re not only deferring the tax, you’re deferring the tax calculation, meaning you or anyone else for that matter do not know what tax rates will be in the future. Albeit, if you take into account all the government spending, where do you think the money will come from to pay the bill? TAXABLE ACCOUNTS and INCOME.

When you put money into a participating dividend paying whole life policy (or system of policies), it is not a creature of the tax code. Your policy is contractually guaranteed to grow daily and cannot lose value … EVER. There is no stock market manipulation or government intervention that can take any of the growth away. There is no taxation on the daily accrual of cash value. There is no taxation on the death benefit proceeds. You can access a preferred stream of retirement income and pay no tax.

Which option would you prefer?

The conventional retirement “hope and pray” strategy has simply been unable to provide financial security, comfort, and calmness to the majority of the people. Do you need more evidence? Look no further than stock market manipulation. Even after the occurrence of the most extended bull market alongside an economic boom… The typical 65 year-old Canadian will live beyond their investments by nearly ten years, according to a recent study conducted by World Economic Forum (keeping in mind that the research was conducted long before one of the worst pandemics of all time, the Covid-19 pandemic.)

According to an analysis of Survey of Consumer Finances Federal Reserve, the average household almost reaching retirement boasts approximately $135000 in all their retirement accounts-sufficient to give them a maximum of $600 each month. Most people have very minimal or even zero retirement savings besides these schemes and the home equity they have.

If you are one of the folks who’ve depended on RRSP’s, Mutual Funds, and similar schemes for retirement savings, you don’t have any idea what the value of your retirement accounts will be when you finally decide to utilize them. Add that to the prospect of losing 30%-50% of your hard-earned money in a market crash yet again.

Predictable and Guaranteed Growth

Nobody know what the withholding tax or income tax rates will be when tapping retirement savings. Withholding taxes occur regardless of your level of income. With the government’s largest stimulus initiatives ever plus the national debt hitting record levels, it’s obvious that the tax rates can only increase over time. According to the Centre for Retirement Research, around 25 to 33 percent of your hard-earned cash will also be lost to taxes even at the existing rates.

Then there’s the absence of control when your money is in the markets. The only assurance WallStreet or Bay Street provides when the market crashes is they receive their money whether you earn yours or lose it all. No matter the circumstances, they don’t lose. What more evidence is needed to show that traditional investments and retirement tactics are no longer effective?

Fortunately, there are some effective ways of saving for retirement that can last much longer and cost much less that than you expect. However, money-lending companies, banks, and Wall Street want to keep it a top secret from you. Why? Because they can’t make money from it.

Flexibility and Liquidity

People who employ the Bank On Yourself strategy want financial stability and to secede from a system in which odds are piled against you, the Banking system.

Bank on Yourself opens the door to a genuine retirement planning option, to bypass the risk, the uncertainty, and to finally secure your financial freedom. It can work for anyone, irrespective of age, earnings, or financial position, to meet their lifelong financial goals without taking unacceptable risks.

Bank on Yourself relies on a process combined with a unique and supercharged model of a lesser-known asset that appreciates in value everyday for more than 173 years: a dividend-paying type of life insurance.

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