Artificial intelligence (AI) has come a long way. Many large financial businesses use AI to help improve things like loan underwriting, reduce financial risk and reduce operational expenses. AI definition is the simulation of human intelligence processes by machines, especially computer systems.

By the end of this article you will learn about robo-advisors, chat bots, and how businesses are using them to reduce expenses on staffing. You will also learn what AI is omitting. 


AI is used in the development of robo-advisors. Robo-advisors are intended to serve the basic needs of the masses like investing. Just like human advisors, AI is not perfect. As such, robo-advisors will never replace the relationships and value of live advisors who can provide advice for more complex planning needs.

Cost Savings

Artificial intelligence is also an attempt to reduce staffing expenses by creating answers to popular questions.  But, if your question is not among them you will be force-fed an answer  regardless.  More and more of these chat bots don’t even give you the ability to request a live person to answer your question. And because of the increase in number of chat bots, even if you’re given the opportunity to speak to a live person your hold time can be as long as 45-minutes, or longer. The cost to their customers is value.  Remember, price is only an issue in the absence of value.

Chat Bots

Another AI evolvement are chat bots.  One is ChatGPT, a tool, from a power player in artificial intelligence called OpenAI, lets you type natural-language prompts. ChatGPT offers conversational, if somewhat stilted, responses. The bot remembers the thread of your dialogue, using previous questions and answers to inform its next responses.

I was curious what answers it would provide so I asked it three questions.

Question #1 – How can I get decent returns with no risk?

Below is its AI generated response. While it’s not wrong, it appears to be limited to what the information someone programmed it to consider in its response.

There is no investment that offers decent returns with no risk. Every investment comes with some level of risk, and the potential returns are usually related to the level of risk involved.

If you are looking for an investment with low risk, you may consider investing in bonds or certificates of deposit (CDs) which are generally less risky than stocks but typically offer lower returns. These investments can provide a fixed return over a set period of time, and the risk of losing your principal is generally lower than with stocks or other riskier investments. However, the returns on bonds and CDs are typically lower than those of riskier investments.

Another option is to invest in a money market fund. Money market funds are low-risk investments that invest in short-term debt securities, such as U.S. Treasury bills and commercial paper. The returns on money market funds are typically higher than those of savings accounts, but they are still relatively low.

It’s important to note that while these investments are generally considered low-risk, there is still some level of risk involved. It’s always a good idea to do your research, assess your risk tolerance, and consult with a financial professional before making any investment decisions.


What ChatGPT omitted is  there is an option to get decent returns with no risk.

That option is dividend-paying whole life insurance (WL) which can be teamed up with the Infinite Banking Concept. AI may have missed it is because WL is not an investment. It shows you results based on what you ask, influenced by how it is programed. This means, AI may be omitting some of the info you were expecting. 

Question #2 – How to Become Your Own Banker

I then asked the AI how to become your own banker it generated the response below.

Becoming your own banker is a financial strategy that involves utilizing cash value life insurance as a way to create a personal banking system. Here are the steps to become your own banker:

    1. Understand the concept: The first step is to understand how the concept of becoming your own banker works. This involves understanding the mechanics of cash value life insurance and how it can be used to create a personal banking system.
    2. Purchase a specially designed dividend-paying whole life cash value life insurance policy: The next step is to purchase a cash value life insurance policy from a reputable insurance company. This type of policy will have both a death benefit and a cash value component.
    3. Fund the policy: Once you have purchased the policy, you will need to fund it by making regular premium payments. The more money you put into the policy, the more cash value it will accumulate.
    4. Use the cash value as a personal bank: As the cash value in the policy grows, you can use it as a personal bank to finance your purchases and investments. You can borrow money from the policy at a low interest rate and pay it back over time.
    5. Continue to grow the policy: To continue to benefit from the personal banking system, you will need to continue to fund the policy and allow the cash value to grow. This will require ongoing discipline and commitment.

It’s important to note that becoming your own banker is not a one-size-fits-all financial strategy, and it may not be the best option for everyone. It’s recommended that you consult with an Authorized IBC Practitioner to determine whether this strategy is right for you based on your specific financial situation and goals.

Question #3 – Infinite Banking Concept

Since I view becoming your own banker the same as Infinite Banking, I asked ChatGPT  about it.  See its response below:

The Infinite Banking Concept (IBC) is a financial strategy that uses a specially designed whole life insurance policy as a savings vehicle. The concept was developed by Nelson Nash, who argued that individuals could use whole life insurance policies as a way to create their own personal banking system.

Under IBC, individuals purchase a participating whole life insurance policy from a mutually owned life insurance company. The policy is designed to provide both a death benefit and a cash value component that accumulates over time. The policy owner can borrow against the cash value of the policy, using it as collateral for a loan.

The borrowed funds can be used for any purpose, and the policy owner pays interest on the loan to the insurance company. The interest paid on the loan is credited back to the policy owner’s cash value, effectively allowing the policy owner to recapture the interest they paid on the loan.

The idea behind IBC is that by using the whole life insurance policy as a savings vehicle, the policy owner can build up a pool of cash that can be used for investments or other purposes. Additionally, because the policy owner is borrowing from themselves, they can avoid the fees and interest charges that come with traditional loans from banks or other financial institutions.

However, it’s important to note that IBC has been subject to some criticism and controversy. Critics argue that the fees associated with whole life insurance policies can be high, and that the returns on investment may not be as high as other investment options. Additionally, there are concerns that the complexity of IBC may make it difficult for some individuals to fully understand and implement the strategy.


In case you’ve thought what I’ve been sharing for the last couple years was a stretch, here’s proof – its all over the internet.

For clarity, Whole Life (WL) and IBC are separate pieces. WL is an asset. IBC is a process that shows you how to use WL as your working capital to be your own banker.

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Since ChatGPT mentioned critics, let me respond: 

  • Many critics are not considered experts on what they attempt to critique.

  • Whole Life fees are are lower than the fees for term life insurance over the lifetime of each type of policy. In fact, life insurance companies earn more profit from term life insurance policies.

  • No one fully understands any new concept initially, especially concepts that require you to think differently.

  • Whole Life (WL) is not an investment. WL is savings and can be used to create a much more efficient banking system.

  • Price is only an issue in the absence of value. WL is an increasing asset – increasing assets have value. Term life insurance is an increasing expense.

  • WL insurance remains the world’s most sound, stable, and versatile asset class in history.

More on Whole Life Insurance (WL)

  • WL insurance carries a “cash surrender value” that is guaranteed to grow over time, granting the policy owner an ever-present liquidity option that keeps getting better with age.
  • For decades, annualized dividends on cash value WL policies have been substantial, often much higher than the returns of traditional savings accounts. Policyowners have broad access to these returns.
  • These policies have survived even the harshest of market conditions. As thousands of banks failed during the Great Depression, countless people tapped their Whole Life policies in their hour of need
  • Warren Buffett once said, “The first rule of an investment is don’t lose money. And the second rule of an investment is don’t forget the first rule.” WL fits this rule extremely well!
WL and IBC give people the following things they want – better than conventional financial planning:
  • Decent rate of return,
  • Consistent rate of return,
  • Safety, Liquid, Guaranteed,
  • Tax benefits,
  • No market volatility,
  • No hidden fees or penalties,
  • Preferred creditor protection,
  • Inflation protection,
  • Control,
  • Easy to manage,
  • Low fees & low risk,
  • Easily transferable,
  • Reputable, Privacy,
  • Life insurance,
  • Easier guaranteed borrowing with no credit checks,
  • Recapture hundreds of thousands of dollars of lost money (debt servicing) over their lifetime – not available with conventional financial planning,
  • Which means more net worth, and more retirement income.
World’s most sound, stable, and versatile asset class

As a Certified Financial Planner, I must uphold a fiduciary oath and standard of client care of  always put clients best interests first. This includes recommending sound money strategies, like WL, even when the conventional financial planning industry wrongly considers it non-conventional.

Given WL remains the world’s most sound, stable, and versatile asset class in history, most everyone should be having a conversion about WL and how it can fit into their portfolio. Please book a conversation here.

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Did You Know This?

Let’s assume when you deposit money at the bank you earn 1%. When you deposit your money at the bank you allow them to loan it out at say 4%.…

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