EP169: What is "Infinite Banking" and is it a Scam?


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On the show today is America's #1 Money Mentor, Chris Naugle.

I'll be honest — I brought Chris to have a conversation on a topic we don't agree on...infinite banking.

If you haven't heard of infinite banking before, you're perfectly normal. It's not a very popular term in the financial world and most financial gurus like Dave Ramsey and Suze Orman are completely against it.

But, what I've learned over the years in this world of personal finance is not every guru is always right.

Therefore, I decided to say "yes" to my guest today so I can ask him the hard questions about...

  • how infinite banking works
  • why it is (or is not) a scheme
  • the risks
  • do you have to wealthy to utilize infite banking
  • are there better alternatives

Now, we will dive into infinite banking in depth, but here is the sceanrio/example he used inside the episode:

👉 You deposit $1,000 into a whole life cash value life insurance plan (yes, you read that correctly...and I was cringing when he said it).

👉 The life insurance plan pays out 4% guaranteed return plus non-guaranteed dividends. The dividends in this scenario were 2%. Therefore, your return is 6%.

👉 Then you immediately borrow from the life insurance plan $900, while your $1,000 remains inside the plan earning 6%. You borrow the $900 at 5%, earning a 1% spread.

👉 Next you take the $900 that you are paying 5% while earning 6% on your $1,000 and you use it to pay off high interest debt, to save, or to invest.

In theory, this looks great on paper. But, I had a lot of questions and concerns with this strategy and kudos to Chris Naugle (my guest) for answering every question I throw at him.

Mentioned in the Show

Learn more about Chris Naugle and Infinite Banking Here.

Watch the Free 90-minute webinar with Chris

Free Book: Mapping Out the Millionaire Mystery by Chris Naugle

[Watch] Dave Ramsey on Infinite Banking

Follow Chris on all social channels @thechrisnaugle


Thanks so much for listening to the show and if you feel the content of this podcast was helpful, please subscribe and leave a review!


Today's show was brought to you by OneAZ Credit Union — my very own credit union I have been proud a member of since 2011.

If you live in Arizona and are looking for a large credit union with a local, customer-focused feel for your personal or business banking needs, look no further than OneAZ Credit Union.

All the show notes, links and anything I mentioned can be found at https://www.moneypeach.com/session169

174 episodes