Roadmap to Applying Your Infinite Banking Policy: Using Tools To Reach Your Goals

Understanding Your Cash Flow Analysis (CFA) and Debt Map

In this blog, I'm going to guide you through the essential documents you receive from your implementation specialist: the Cash Flow Analysis (CFA) and Debt Map. Think of them as your personalized roadmaps, showing you how to leverage the Infinite Banking Concept to reach your financial goals to build, keep and create more wealth.

The Summary Page: Setting the Stage for Success

You'll receive your documents as a PDF. The first page, the summary page, offers an overview of your policy. Here’s what you'll find:

1. Insurance Carrier: The name of your insurance provider.
2. Policy Start Date: When your policy officially begins.
3. Policy Number: Useful for future reference.
4. Insured & Owner: The person covered by the policy and the policy owner (often the same person).
5. Payment Mode & Annual Premium: How often you pay your premium and the total annual amount.
6. Available Loans: How much you can currently borrow.
7. Outstanding Loan Balance: Any unpaid loans you've already taken.
8. Death Benefit: The total amount payable to your beneficiaries.

Your implementation specialist prepares this document based on available information, so the loan amount might not always be accurate in real-time. Verify the details through your insurance carrier's online portal or by contacting them directly.

Cash Flow Analysis (CFA): Uncovering the Numbers That Drive Your Wealth

Guaranteed vs. Non-Guaranteed Cash Value

Your CFA includes both guaranteed and non-guaranteed cash value figures. The guaranteed cash value shows what your policy guarantees at the end of each year, while the non-guaranteed cash value includes projected dividends.

Breaking Even and Achieving Efficiency

Dividends can significantly accelerate policy growth. However, in the early years, the cash-on-cash return may be negative due to the initial insurance costs. But don't worry; efficiency usually happens between years five and six. Every policy is unique, so check your document to identify your break-even point.

Debt Map: Where Your Strategy Comes to Life

If you've submitted an expense form or questionnaire to your implementation specialist, your liabilities will be listed on the Debt Map, typically prioritized from smallest to largest balance. This is called the snowball effect and we have found that this help people see progress the fastest which shows progress AND progress equals happiness. 

Debt Summary

1. Average Interest Rate: The average rate across all your debts.
2. Total Debt Balances: The sum of all your liabilities.
3. Monthly Debt Payments: The total you’re paying monthly.

The Map: Charting Your Path to Freedom

Now, let's talk about how your policy's premium payments and loans map onto your debt repayment strategy.

Year One

• Month 1: Pay your annual premium upfront, yielding a projected cash value. You can then borrow up to 90-95% of the value that is available (we don’t recommend utilizing more than 90-95% of your cash value available), depending on the insurer.
• Loan Interest: Accrued annually on policy loans at around 6%.
• Example: Take a loan of $5,340 to pay off credit cards, and use the remaining balance for student loans. Redirect previous credit card payments into a segregated account, reducing debt while recapturing cash flow.

Year Two

• Month 13: Pay premiums again for a higher cash value. Borrow 90% of your cash value, plus accumulated funds from your segregated account, to clear the remaining debt.

Two Years of Clear Guidance, Lifetime of Freedom

Your implementation specialist will map out two years for you. Beyond that, you'll need to update the map periodically. Take it one year at a time, and don't hesitate to ask your specialist for help. Our experienced Money Mentor team is here to guide you every step of the way.

Action Equals Destiny

Imagine feeling empowered and in control of your financial destiny. That's what Infinite Banking is all about. Here at the Money Multiplier our mission is to empower American families to find their financial freedom and build a guaranteed Legacy. As we’ve discussed in our videos, small shifts can lead to big changes, and by applying the principles of Infinite Banking that we teach, you can sail past financial icebergs and confidently build your wealth.

P.S.

If you want the kind of guidance that leads to financial independence and a secure legacy, book a free strategy session here with one of our mentors today. We're excited to show you how Infinite Banking can empower you to reach your goals.

Until next time, keep living wealthy and building your legacy.

Want to dive deeper into this topic? Check out our podcast on Mapping the Path to Financial Independence: Apple / YouTube