Unlocking the Infinite Banking Method: Building Generational Wealth

Unlocking the Infinite Banking Method

What if you could become your own banker—using your life insurance and retirement assets to fund your dreams, protect your family, and build a legacy that lasts for generations? At Dingle Agency, we help families and business owners in Houston and beyond do just that, using a faith-driven approach and proven financial tools.

Let’s break down the Infinite Banking Method and how it works with Index Universal Life (IUL) insurance, annuities, and smart retirement strategies.

Step 1: Start With Wise Stewardship—The Dingle Agency Financial Spending Formula

Before you can build wealth, it’s essential to live within your means and follow a purposeful financial plan. At Dingle Agency, we recommend our simple, faith-based spending formula:

• Live on 70% of your earned income
• Give 10% (“It’s better to give than to receive.” Giving opens doors and opportunities.)
• Save 20% (Saving with a purpose—to take advantage of opportunities, not just to save for saving’s sake.)

If you’re currently spending a bit more, start with 80% living, 10% giving, and 10% saving, and work your way toward the ideal. Ultimately, strive to live on 50% of your income, give away 10-20%, and save 30%.

Important:
Your savings should be purposeful—ready to take advantage of opportunities like new business ventures, annuities, or Index Universal Life policies. We recommend keeping 5–15% of your savings liquid (in a high-yield savings account), but the majority should be working for you in higher-growth vehicles like IULs and annuities.

Step 2: Maximize Your Retirement Savings with Annuities

If you’re age 40 or above and have saved at least $10,000 in your 401(k), now is the perfect time to consider an annuity. By rolling over your 401(k) into an annuity, you protect your savings from market downturns and set yourself up for guaranteed growth.

Example:
Let’s say you roll over $25,000 from your 401(k) into an annuity earning 7% compounded annually for 10 years.
Here’s how your investment could grow:

• Year 1: $25,000 × 1.07 = $26,750
• Year 2: $26,750 × 1.07 = $28,622.50
• Year 3: $28,622.50 × 1.07 = $30,626.08
• Year 4: $30,626.08 × 1.07 = $32,770.91
• Year 5: $32,770.91 × 1.07 = $35,066.87
• Year 6: $35,066.87 × 1.07 = $37,421.55
• Year 7: $37,421.55 × 1.07 = $40,040.06
• Year 8: $40,040.06 × 1.07 = $42,842.86
• Year 9: $42,842.86 × 1.07 = $45,842.86
• Year 10: $45,842.86 × 1.07 = $49,052.86

So, after 10 years, your $25,000 could nearly double to about $49,000—all while enjoying steady growth and peace of mind. With 7% annual compounding your money will double every 10 years. That's nearly $100,000 after 20 years, $200,000 after 30 years, and $400,000 after 40 years, all from a initial investment of $25,000.

Step 3: Build Wealth with Index Universal Life (IUL) Insurance

An IUL policy does more than just provide a death benefit. It can also:

• Build cash value, linked to the performance of a stock market index (without direct market risk)
• Offer flexibility in premium payments and death benefits
• Allow you to borrow against the cash value for opportunities, emergencies, or even to fund your own business—just like your own private bank

How Dingle Agency recommends using IULs:

• Allocate a portion of your retirement contributions toward an IUL policy (as part of your 20–30% savings)
• Use the policy’s cash value for major expenses or investments, instead of traditional loans
• Enjoy tax-advantaged growth and flexible access to your money

Step 4: Create a Generational Wealth Cycle

Here’s where true legacy planning comes in. When your IUL policy pays out, those funds can be directed (via your will or trust) to your children. The next generation then uses a portion of that inheritance to start their own IUL policies—repeating the cycle and building wealth for decades to come.

Key points:

• Make sure your wishes are clearly written in your will or trust
• Work closely with your trusted insurance agency (like Dingle Agency) to keep the family plan on track
• The agency, not just the insurance company, becomes your partner in managing and growing your family’s wealth over generations

Why Work with the Same Agency?

Having a consistent, trusted insurance agency—rather than bouncing between different companies—means your family’s unique goals, values, and history are always understood. Your agency acts as a guide and advocate, working hand-in-hand with your trust or will overseer to ensure your legacy plan is honored and carried out smoothly.

Ready to Start Your Infinite Banking Journey?

Building generational wealth doesn’t happen by accident. It takes faith, planning, and the right financial tools. At Dingle Agency, we’re here to help you:

• Roll over your 401(k) into a growth-focused annuity
• Set up IUL policies for you and your loved ones
• Create a family legacy plan that stands the test of time

Let’s work together to guard your future and empower the next generation—one wise decision at a time.

Want to learn more or schedule a free consultation? Book your session here.
Or call us at (346) 633-2888. We’re ready to help you start building your family’s financial legacy today!

Frequently Asked Questions: Infinite Banking with IULs & Annuities

Q: What exactly is an Indexed Universal Life (IUL) policy?
A: An IUL is a type of permanent life insurance that offers both a death benefit and a cash value account. The cash value grows based on the performance of a stock market index (like the S&P 500), but your money isn’t directly at risk in the market. You can access the cash value for emergencies, opportunities, or retirement—making it a flexible tool for building wealth.

Q: How does rolling over my 401(k) into an annuity work?
A: If you’re age 40 or older and have at least $10,000 saved in your 401(k), you can transfer those funds into an annuity. This move can protect your savings from market losses and provide steady, guaranteed growth for retirement.
For example: Rolling over $25,000 into an annuity earning 7% compounded annually would grow to about $49,000 after 10 years—almost doubling your money, with the benefit of steady, predictable growth.

Q: Why use an annuity instead of leaving my money in a 401(k)?
A: Annuities can offer guaranteed growth and income, which isn’t always the case with a 401(k), especially if the market drops. With an annuity, you can lock in a steady growth rate (like 7% compounded), giving you more security and predictability for retirement.

Q: How does the “infinite banking” concept benefit my family long-term?
A: Infinite banking lets you use your own money (from your IUL or annuity) for major expenses, investments, or emergencies—instead of borrowing from a bank. Plus, by setting up IUL policies for your children and using inheritance wisely, you create a cycle of wealth that can benefit your family for generations.

Q: Why should my family keep working with the same insurance agency?
A: When you stick with a trusted agency like Dingle Agency, we get to know your family’s needs and long-term plans. This makes it easier to manage policies, update beneficiaries, and ensure your legacy plan is carried out smoothly—especially when it’s time for the next generation to take over.

Q: Can I access the cash value in my IUL or annuity whenever I want?
A: Yes, you can usually access your IUL’s cash value through policy loans or withdrawals (with some limits and guidelines). Annuities may have withdrawal rules or penalties if you take out money too early, but we’ll help you understand all your options before you make any moves.

Q: How do I get started with infinite banking at Dingle Agency?
A: It’s easy! Just book a free consultation with us, and we’ll review your current situation, answer your questions, and help you design a custom plan using IULs, annuities, and other smart strategies.

Still have questions?
Call us at (346) 633-2888 or book your free consultation. We’re here to help you take the next step toward financial freedom and family legacy!

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