https://www.youtube.com/watch?v=Nd1Q31lCczw Are you a wealth creator with a need to have access to cash in the safest way that puts you in control? Velocity Banking shows up again and again as a solution to pay off your home faster and save interest. It even appears as the ideal way to store up equity in your house to use for investing. And, to add confusion, it sounds a lot like Infinite Banking, with a similar objective of taking the banking function into your own hands, so you achieve independence from the bank profiting on your money and requiring their permission for you to use it. To further muddy the waters, Nelson Nash’s book, Becoming Your Own Banker, is often cited as the foundation for both strategies. (However, Nelson wrote the book as the foundation for the Infinite Banking Concept, which he promoted through the Nelson Nash Institute.) But what is the Velocity Banking strategy, and what are the risks? How does it compare to Infinite Banking? And which approach gives you more control? This episode is for every wealth creator who wants to have access to cash in the safest way that puts you in control, so you’ll never get caught in a cash crunch. Today, we’ll reveal the three reasons Velocity Banking is a poor alternative to Infinite Banking for building investible capital. * Velocity Banking doesn’t provide safety* Velocity Banking doesn’t guarantee access to your cash* Velocity Banking doesn’t give you a rate of return First, What Is Infinite Banking? Infinite Banking (also known as Privatized Banking) is a strategy of using a specially designed, dividend-paying, high cash value whole life insurance policy with a mutual company as a place to store cash. As you build up cash value, you have access to use it through withdrawals or policy loans. The result of Infinite Banking is that your cash flow, or surplus, goes into a life insurance policy, where it is stored in cash value. Here’s how you can find out more about Infinite Banking, the kind of life insurance policy that works for this strategy, and how to get high cash value and long-term growth. And What Is Velocity Banking? In short, Velocity Banking is a strategy of using a line of credit to pay off your house faster, while saving interest. The strategy includes variations such as opening a 0% interest credit card and moving balances of debt from other liabilities to the credit card and then paying off the credit card fast, using a home equity line of credit (HELOC) or even replacing your mortgage with a 1st lien HELOC. Depending on how you use this strategy, proponents demonstrate how you can fully pay off your home quickly, usually between 5 – 10 years. However, the debt reduction isn't simply a result of the HELOC product itself.
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