Highly profitable companies can run into financial trouble if they don’t have the liquidity to react to unforeseen events. Even companies with a stockpile of assets on their balance sheets will struggle with cash flow issues when markets crash if those assets are illiquid. In a moment of crisis, assets are of no value if they cannot easily be converted to cash in order to save the company.
In his classic work Becoming Your Own Banker, Nelson Nash claims that the standard approach to life insurance has things backwards. Consumers have been taught to get their desired death benefit for as little outlay as possible. Yet Nash argues that people’s need for finance while alive is more urgent than their need for a benefit check when dead.
The following article is based on the remarks Carlos Lara made at the February 2017 Infinite Banking Concept (IBC) “Think Tank” in Birmingham, Alabama. Lara’s remarks concerned the vision of The Nelson Nash Institute, its definitive difference, and overarching goals.
It’s been said that people would rather die than think. But I am going to see if I can incentivize you do just that by showing you a way to fund a large Infinite Banking Concept (IBC)-type life insurance policy while using cashflows that are dedicated to paying your taxes.