Success or regret often comes down to one thing: guidance. In this episode, Richard Canfield and Jayson Lowe reveal how to combine crypto and the Infinite Banking Concept (IBC) to keep control, minimize risk, and protect your wealth through every market swing.
Learn the basics of Infinite Banking
- The Big Mistake Most Crypto Investors Make
- Process vs. Product (Why This Distinction Matters)
- Why Policy Loans Beat Cashing Out (or Margin)
- Real-Life Risk You Might Be Ignoring
- The Discipline Part (Behaviour Makes or Breaks It)
- The Practical Playbook (Step-by-Step)
- When Not to Use a Policy Loan
- FAQs
- Internal & Helpful Links
- Ready to Stop Guessing and Start Controlling?
The Big Mistake Most Crypto Investors Make
Everywhere you look, it’s “buy XRP,” “stake this,” “ride the bull run.” Yes, gains can be huge. However, without a plan to control the flow of money, you’re still at the mercy of banks, taxes, and volatility. Most people are told to buy, hold, and pray or worse, to cash out at the wrong time and hand a big slice to the taxman.
Process vs. Product (Why This Distinction Matters)
Infinite Banking is a process, not a product. The product, dividend-paying whole life insurance from a reputable mutual company, is simply the tool.
- Process: You control how you finance everything in life.
- Tool: A contract that grows daily, lets you borrow on demand, and doesn’t go backward in value.
Crypto is a separate asset. You decide how to acquire it: cash, margin, or policy loan. When you choose a policy loan, you’re using OPM (Other People’s Money), in this case, the insurer’s, while your policy keeps compounding.
Why Policy Loans Beat Cashing Out (or Margin)
- No taxable event: Borrowing against cash value doesn’t trigger capital gains.
- Unstructured repayment: You set the schedule. Therefore, you keep flexibility.
- No asset haircut: Your policy’s cash value keeps growing daily.
- Behaviour guardrails: You still must repay. Yet the terms are under your control.
If you’re going to borrow, would you rather borrow against an asset that can’t go backward (your policy cash value) or an asset that swings wildly (your crypto)? Exactly.
Real-Life Risk You Might Be Ignoring
Cold-storage keys. Exchanges that blow up. A partner who isn’t hands-on with wallets. Meanwhile, life happens. If you pass away, policy death benefits are liquid, tax-free, and show up when needed most. That removes stress in a stressful moment. Your heirs aren’t forced to liquidate crypto at a bad time.
The Discipline Part (Behaviour Makes or Breaks It)
Charlie Munger warned about the dangers of liquor and leverage. Leverage can ruin smart people if it’s reckless. The same is true here. Don’t drain 90% of your available policy loan balance to make a one-time payment into a spike. Do keep buffers, repay steadily, and avoid “Vegas on black” decisions. If you borrow with no plan to repay, that’s not an IBC problem; it’s a behaviour problem.
The Practical Playbook (Step-by-Step)
- Build your warehouse of capital
Start or expand a properly designed dividend-paying whole life policy (mutual company). Your money must reside somewhere. Choose a place that grows daily and gives you control. - Acquire crypto with a policy loan.
When opportunity knocks, consider borrowing against your cash value. Do not cash out the policy. Keep compounding intact. - Set a repayment rhythm.
Treat it like a line of credit you own. Repay regularly. When possible, repay a little extra to expand your system. - Protect the household
Document wallet locations and recovery steps. Keep a simple “when I’m gone” guide with your estate docs. Meanwhile, your policy’s death benefit covers immediate needs. - Rinse and repeat prudently.
As cash value rises, you’ll have more optionality. Use it wisely, not wildly.
When Not to Use a Policy Loan
- You’re chasing a rumour or a pump.
- You can’t explain your repayment plan in one paragraph.
- You’re already maxed and stressed.
- Your household doesn’t understand where the keys, files, or policies are.
If any of these are true, pause. Then regroup with a coach.
FAQs
Does borrowing against my policy pause compounding?
No. Your cash value keeps growing. You’re borrowing against the asset, not liquidating it.
Is this only for significant policies?
No. Start where you are. Grow. Over time, your system becomes a reliable source of opportunity capital.
What about taxes?
Policy loans don’t create a taxable event. Selling crypto can. Structure matters. Get guidance.
Isn’t silver or cash simpler than crypto?
Maybe. However, the financing decision is the same. Cash, silver, or Bitcoin you still either use your dollars or OPM from your policy.
Internal & Helpful Links
- Start here: Becoming Your Own Banker (overview)
- Family Banking System®: Keep more money cycling inside your household
- Related episode: 290: Infinite Banking Risks, What They Are & How to Avoid
External resources (optional):
- dontspreadwealth.com — Family banking meetings guide
- www.cashfollows.com — 91-year case study (Cash Follows the Leader)
Ready to Stop Guessing and Start Controlling?
One wrong move and the taxman wins. One misstep and volatility turns into a headache, not a win. Instead, get clarity and a plan tailored to you.
→ Book a no-pressure Clarity Call
We’ll show you how to use Infinite Banking to fund (not chase) your crypto strategy without draining savings or triggering taxes.