Understanding
The Benefits Of...
‘Creating Your Own
Bank’
Imagine, if every time you needed money,
instead of borrowing from a bank, or using a credit card you had
your own private bank (of your money) that you could get a loan
from, for whatever you need. Then whenever you take a loan,
you would be paying yourself the principal and interest the bank
would have received. Instead of the bank using your money to
make money, you would be making all of those profits.
How much better off would you be?
That’s the basic premise behind the
‘Infinite Banking Concept’, written by Nelson Nash,
and 'Money For Life' written by Jeffery Reeves.
How Their Concept
Works
The main idea is to sock away as
much money as you possibly can, as quickly as you can, into a good
participating whole life policy (Dividend paying), for five to seven years
to create your own private bank. You over-fund the
policy up to just below the MEC guidelines, (Modified Endowment
Contract guidelines) using a Paid-Up Additions Rider. Then
whenever you need to make a big purchase, you can borrow the money
from your bank. (Your Life Insurance Policy) Now you pay
the loan principal and interest back to yourself. You're now
making the big profits on your money that the bank would have made.
This Concept Isn’t
New
It’s a great concept. However,
the concept isn’t exactly new. Variations of this 'safe
money' concept have
been used for more than 30 years.
Thirty plus years ago, some of the very best financial advisors were
showing their
clients that the safe money they put into their participating whole life
policy could be used for emergencies, to take advantage of business
opportunities, to fund a college education, to buy a car, to buy
property and much
more. However, if you take money out prior to age 65
(retirement) you’ll want to pay the loan back, plus the interest, so
you will have the tax-free retirement income you planned on.
It Works Better
Today
As well as this 'safe money' concept worked 30 years
ago, it works much better today because of the 'paid-up
additions rider' that was introduced in the late 1980’s.
Today, using a paid-up additions rider, you can dramatically
over-fund a participating whole life policy up to the MEC
guidelines, making it an exceptional wealth accumulation vehicle,
while still keeping the unique benefits and safety of cash value
life insurance.
Why
Participating Whole Life
The reason you use a
participating whole life policy is that it offers several unique
benefits, that the other investment vehicles don’t offer…
-
You can put in as much money as you
want... limited only based on the size of the policy, which you
can make as large as you need. (Not so, with qualified plans)
-
All of the money you put into a
cash value life insurance policy builds tax deferred. You
avoid paying income taxes every year, so your money builds
faster.
-
You can borrow the money from the
policy tax-free, without contractual withdrawal penalties.
And, there are no early withdrawal penalties from the Federal
Government. (Not so, with qualified plans or annuities)
-
You have complete control.
You can take loans from the policy without
going through any pre-qualifying process as you would with a
bank or credit cards.
-
Guarantees: Only life
insurance and annuities guarantee your investment principal and
offers you minimum growth guarantees for the life of the
contract.
-
Safety: All 50 states have something similar
to FDIC for life insurance policies and annuities. Plus,
insurance companies must, by law, cover at least 100 percent of
their liabilities with reserves, hence the term "100 percent
legal reserve life insurance company." There are also
regulations as to the percentage that can be held in certain
forms of assets. This system has produced a remarkable
overall record of solvency and safety.
-
Cash-value life insurance is generally not
attachable by creditors.
-
You have a disability waiver of
premium rider that will continue to deposit money into your
account if you ever become disabled. This makes the plan
self-completing. (Only life insurance offers this unique
benefit)
-
Life insurance provides a death
benefit that gives your family the money you intended to save;
in the event you can’t be there.
-
Life insurance cash values don’t
count as an asset when applying for college financial
aid. And, loans from life insurance aren't a taxable
event, so they are not reportable when applying for college
financial aid.
-
Life insurance can provide a
tax-free income during retirement, that you cannot outlive.
-
You'll have the protection of life insurance
in your retirement years to replace a lost pension and Social
Security income at your death, for your spouse and heirs.
-
Unlike qualified plans and annuities, the
death benefits and cash values are transferred income tax-free
to your beneficiaries.
-
Cash value life insurance generally
bypasses probate (and it is private, so
there are no public records).
-
And best of all, in most
participating whole life policies, you will be making money on
the money you borrow. You are NOT borrowing your
money directly from the life insurance policy, so you'll
continue to earn interest and dividends on ALL of your
accumulated cash values.
Two Concerns
There are two concerns with how they
present the concept...
-
They'll tell you the concept only
works with a good participating whole life policy! While there
are more guarantees in a participating whole life policy,
this concept works exceptionally well with a good Universal
Life Policy. And, in some situations a Universal Life
Policy can work much better and is more appropriate than a Whole Life Policy.
-
They believe you should pay off
your mortgage, as soon as possible. The fact is, in many
cases, this is giving up one of the best ways to get started
using this concept... and one of the best ways to accumulate a
fortune. (The ‘Missed Fortune’ concept)
Making The Concept
Work
The real beauty of ‘Creating Your
Own Bank’ is that with some small modifications to their ideas,
almost everyone can use this concept...
to take back control of their money and be on the road leading
to true financial independence.
As stated earlier, to make this concept
really work means putting all the money you possibly can, into a
good cash value life insurance policy, over-funding it up to the MEC
guidelines. (Participating Whole Life or Universal Life)
Now, if you want to maximize the exceptional benefits of using these
concepts, you must ‘FIND THE
MONEY’!
-
Can you increase your deductibles and delete any unnecessary
riders on your existing insurance policies? Do you have
any unneeded insurance policies? Can you use their
dividends to pay up your existing policies and/or funnel those
dividends into the new policy?
-
Can you temporarily stop the
contributions to your qualified plans, except for any
amounts that are being matched by your employer?
-
Can you stop payments into prepaid
college plans, 529 plans, etc.?
-
Can you refinance your home for as
long as you can, and take out as much equity as they can, to
fund the policy? (The ‘Missed Fortune’ concept) Or, can
you use equity to pay-off all your debts, to
free up those payments to funnel into the life insurance policy?
-
Finally, can you look for
other ways to cut your current expenses? Can you get a better
long distance carrier for your phone service, etc.?
You Be
the "Bank"? Why?
When you are the "bank", you can take back the control of your money...
and your life!
Summary
The main problem for agents, advisors
and planners is that this is a
sales concept... it is not a marketing and sales system. They do
not have a effective marketing program to find and attract the
people who have the money to sock into savings. Remember,
prospects must be willing and able to put away large sums of
money. Unfortunately, this severely limits the amount
of prospects available to you. And, it puts you in direct
competition with all the companies and advisors who are working
the more affluent markets. (That's why Jeffery Reeves,
the author of Money For Life endorses and recommends using
our Found Money Management™ marketing and sales
system).
The 'Money For Life',
‘Infinite Banking’ and ‘Missed Fortune’
concepts aren’t new. We’ve been using variations of the same
concepts for 27 years to help our clients qualify for college
financial aid, reduce debt and accumulate great wealth. And,
we've helped hundreds of agents, advisor and planners to go from
earning $30,000 -$50,000 per year, to earning $30,000 - $50,000 per month!
And, you can do it too...
We highly recommend you read
'Money For Life', ‘Infinite Banking’ and
‘Missed Fortune’. And, then take a look at
our Found Money Management™ Advanced Life Insurance Sales
System. Within a few weeks, you can have more prospects
than you can possibly handle! You'll truly be helping
your prospects to build a secure financial future. And, you’ll
be selling more large cash value life insurance policies.
(Participating whole life and/or universal life)
Learn about the exceptional benefits of
creating your own private bank. Do it for yourself! Then
help your prospects to ‘Find The Money’ to implement these
concepts. They’ll be your clients for life... And, you’ll get
tons of referrals!
Lew and Jeremy Nason
'The 9 Out Of 10 Guys'
Marketing and Sales Coaches
Message to
Financial Advisors…
What have you done in the last sixty
days to increase your sales? Is there any question that during
the year, you're going to spend thousands of dollars in time, money
and effort bringing in new clients to your business? Then wouldn't
it make sense to do it the most cost effective, money-making ways?
Why not learn the marketing, prospecting, appointment setting and
sales strategies that most of the leading agents, advisors and
planners on the planet use? Jeremy and Lew Nason
Early
Bird Special - 30% Off
Learn
a Much Simpler and More Effective Way, to Properly (and ethically)
market and use the same powerful 'Cutting Edge' concepts found in
the 'Money for Life', 'LEAP', 'Missed Fortune',
'Infinite Banking', 'Circle of Wealth', plus the
various 'Retirement Supplement' and 'College Funding'
systems... in spite of the economy
