Private Banking as a 401k Alternative
401k’s, and IRA’s, have become the traditional investment for most Americans. However, after comparing Infinite Banking to these government sponsored plans, it becomes clear why banking is such a strong substitute. Let’s take a look at these two vehicles side by side.
Tax Deferred Growth
Tax Deferred Contributions
Volatile Market Investment
No Liquidity without Penalties
Tax Free Growth (if handled properly)
Post Tax Contributions
No Contribution Limits
Guaranteed Floor Return
No Hidden Fees
Tax Free Transfer to Heirs
Tax Advantages for Business Use
As you can see, a 401k is going to have some attributes that the private banking system won’t have, such as an employer match and use of pre-tax dollars.
However, there are many qualities of private banking as well. Your money isn’t tied to the markets, so you have no risk of losing money.
Private banking puts you in control of your money. You are free to borrow out dollars and use them for the things you need, such as cars, home repairs, investments, etc.
Also, if treated properly and setup by a professional, your private banking system will never be taxed again. With a 401k, you are taking a chance on future tax regulations.
No matter what you choose, having all the information is the only way you can make an informed decision.