Time to start thinking like a banker and Reclaim the Banking Function in Your Life

Retirement Planning

Time to start thinking like a banker and Reclaim the Banking Function in Your Life

In the world of personal finance, who controls most of the money? Who profits the most? Who always makes money, no matter what the economy or job market is doing? THE BANK OWNER!

Would you own a bank if you could? OF COURSE, YOU WOULD!

If banks kept hundreds of billions of dollars in a safe account that earned them 4-7% every year, would you want to know about it? If it is good enough for banks, shouldn’t it be good enough for you?

Bankers think differently than most people. They use other people’s money to multiply their wealth.

Bankers know that the real money opportunity comes from the interest people pay them on everything from cars to homes to student loans to credit cards.

We are taught to accumulate wealth and to give our money to Wall Street and the banks. Who teaches us that? BANKS AND WALL STREET. WHY?  So, they can create wealth for themselves with your money.

Bankers and Wall Street tell you to park your money with them, yet they deploy your money and keep your money in motion to create more wealth for themselves. Keeping money in motion is called the velocity of money—the more money that is kept in motion, the more money that is created.

They do not park your money, so why should you?

Most people think like “consumers,” and so they consume their wealth. But, if you look up the word “consume,” it means “to destroy.” Consumers are Wealth Destroyers. Do you want to continue destroying your wealth?

What if you could consume AND build wealth at the same time? Would you want to do it? OF COURSE! Why wouldn’t you?

If you could be your financing source for homes, cars, vacations, college tuition, and pay the interest back to YOUR private family bank and build YOUR wealth instead of someone else’s wealth, would you do it? OF COURSE! Why wouldn’t you?

What if you could collect a 4-6% return on your money every year instead of the .5% the banks pay you? Would you do it? What if you have access to that money and you never have to pay taxes on that money? Would you do it?  OF COURSE! Why wouldn’t you?

Would you like to self-finance a business start-up? If you already have a business, would you like to finance your cash flow and simultaneously build your wealth? OF COURSE! Why wouldn’t you?

We are in a time of low-interest rates, so you probably do not think about the interest you pay to the bank. But it is not about the interest rate you spend; it is about the VOLUME of interest you pay.

If you want to start living like a banker, building wealth like a banker, and retire like a banker, you must start thinking like a banker. We will help you create your private family bank using a tax-favored financial vehicle we are all familiar with, yet few people understand. It is a strategy the wealthy use and one you have probably never heard of.

The Myth of a Lower Tax Bracket in Retirement

Retirement Planning

The Myth of a Lower Tax Bracket in Retirement

If you let this myth guide you in any way in your financial planning, you are setting yourself up for failure. Unless you can predict the future, you have no idea how much money you will need in retirement, or how much you will be paying taxes in Retirement. 

Some people believe their taxes will be lower in Retirement because that’s what the financial industry has been telling us. Perhaps, for a short time, retirees may be in a lower tax bracket. But the reality is most people end up in the same tax bracket or a higher tax bracket in Retirement. 

Once Required Minimum Distributions kick in at age 72, you can quickly move into a higher tax bracket than you were in during your working years. You may also have an increase in taxes due to Medicare surcharge tax and other taxes the government decides to make you pay between now, then, and after you retire.

We have no idea what the economy, taxes, the stock market, or healthcare costs will be when we retire or how they will change throughout our Retirement. 

We are taught to base our Retirement on an assumption that has no factual base. Why are we being led to defer all our taxes until Retirement?  It becomes a trap. Once we are in Retirement, there are very few ways to reduce taxes. How do you plan on making up that money in Retirement? Remember, Retirement can easily last 20 years. 

Why are you making predictions on something you have no control over? Why are you trusting the government with taxes in your Retirement? 

FUTURE TAXES

Here is what we know: the current tax law is in effect until the end of 2025. Many people believe the difference in rates between the old and the new laws is just a few percentage points. This is another false assumption. 

The difference between the current rates and the future rates on January 1, 2026, is between 9.7% and 25%. In other words, there is an opportunity right now through proactive tax planning to reduce your taxes between 9.7% and 25%.

However, looking to the future, the tax landscape is likely to change. Our government continues to spend frivolously. At some point, our country must pay for that debt. Taxes and inflation are the most powerful tools our government can use to decrease their debt. 

Most people don’t realize how high taxes can go. Since 1913, we have only had a lower top marginal tax rate 16 years. In 1944 and 1945, the maximum marginal rate was 94%. It was 91% from 1954 to 1963, and it didn’t drop below 70% until 1981. To add to that, the tax bracket thresholds have changed dramatically. 

With the government’s current spending problems, how high do you think tax rates will go? 

THERE IS A SOLUTION

If you are unwilling to pay taxes in the future, you can pay your taxes now. A Roth IRA is a government-controlled retirement plan that is tax-exempt. But the GOVERNMENT restricts the amount you can contribute to a Roth, so you probably cannot build up a large enough account for a comfortable tax-free retirement. Luckily, there are some ways to supplement a Roth. Congress has also been flirting with the idea of changing the contributions rules to these accounts. 

A high cash value dividend-paying whole life insurance policy may be the best way to accumulate wealth and not pay taxes in Retirement. There are different choices as to how you design a policy for your retirement needs, but they all share the same features needed for a safer retirement; liquidity, tax-free cash-flow, and consistency in value.

For more information on Life Insurance Retirement Plans, please contact us.  

Why Single Parents Need Life Insurance

Retirement Planning

Andrew’s entrepreneurial career began as a young child, mowing lawns for the neighbors and doing other odd-ball jobs. His entrepreneurial spirit has continued to this day, as he always has multiple irons in the fire. 

He began investing in real estate at the age of 19. He owned a construction company, an insurance agency and graduated with a degree in economics and political science along the way. That education has since served him well and gives him a different perspective than most advisors.   

Throughout his real estate investing and ownership of multiple businesses, he was approached often by financial advisors to invest in the stock market. While in college, he discovered his love for the stock market and picking stocks, but as a business owner, he believed his resources should go into the business first. This love for picking stocks led him to his first job as a financial advisor. 

He began his career as a financial advisor at a top firm, but he was not satisfied with its clients’ approach. Their focus was accumulating assets and selling products, and he saw many flaws in this approach.  

Growing up, his father was a tax auditor, so he was awfully familiar with the impact taxes have on income. He understood that tax management and cash flow management are just as important or more important than the rate of return in a portfolio. There needs to be a balance that gives you safety, certainty, and confidence to live the life you desire without going into a never-ending debt hole. 

His desire to reduce his client’s tax burden was so strong, his financial planning practice paused, and he worked at a tax firm for a year to learn not only more about tax planning, but also how to do tax returns. This gives him the knowledge to recognize areas of concern others may not see.

He has taken many courses on taxes and has continued working towards his Enrolled Agent’s certification. (Similar to a CPA.) His next professional goal is to become a Certified Exit Planner Advisor and help business owners create plans to exit their business safely and securely on their terms. 

Andrew understands the financial needs and goals for business owners, retirees, young professionals, and real estate investors are quite different. To address these unique needs, he takes a different and unique approach to each client. He has established great relationships with lawyers, CPAs, Medicare experts, and other professionals to ensure his clients work with a team that all speaks the same language.

Cash flow planning, minimizing taxes, and minimizing other risks are at the foundation of his practice. His favorite part of his job is teaching people about Infinite Banking and creating their own family banking system.  

Andrew is an avid outdoorsman, with an eight-year-old son that loves wrestling. You will find them hunting or wrestling during the winter. Andrew trained in martial arts and wrestling most of his life and fought professionally for a while. He loves coaching his son in these areas.   

During the summer, you will find them on the lake, riding motorcycles, or out in the country every weekend. 

A word from Andrew

My goal is to vastly improve your life by providing you with the correct financial information needed to make the best financial decisions possible for you and your family. I hope I introduce you to new thoughts and spark new ideas that give way to a journey you never knew existed.

Being wealthy is much more than accumulating assets. It does no good to continue accumulating assets if those assets can disappear in a flash. With proper knowledge and planning, we will help you create AND keep the lifestyle you want to live.  

Taxes

Retirement Planning

Uses of a financial vehicle you have heard of, but you have never been taught about:

• Create Passive Income with No work, No Risk, and No Taxes
• Infinite Banking- Use it to create your Private Banking System
• Pay yourself when you borrow money, instead of paying the bank
• Earn 4-7% Compounding interest instead of .5% the bank pays you
• Access your money any time
• Safer than a traditional bank
• This strategy will increase your Return on every investment. It does not matter if you invest in real estate, the stock market, or your business.
• Use it to help with Long Term Care expenses, so you do not run your other assets dry.
• Less expensive than traditional Long-Term Care
• Use this financial tool if you are terminally ill, so you do not run your other assets dry
• 412(e)(3) retirement plan allows you to contribute up to $230,000 in 2021 
• LIRP- A retirement plan that will enable you to take advantage of the stock market indexes but never risk money in the stock market again. Invest with after-tax dollars. It allows you to Create Tax-Free cash Flow in Retirement and will never lose value from market losses
• Use this financial tool to create other tax deductions 
• Use to protect your business, your business partners, and your family
• Banks put $100’s of Billions of dollars into this financial vehicle because of the safety, the liquidity, and the tax advantages 

Do you have a key employee or business partner? What happens to your business when a key employee no longer works for you? What if your business partner dies, gets disabled, goes bankrupt, gets a divorce, or otherwise leaves the business? What happens to their share of the company, and how do you maintain control of the company? How do you afford a buy-out? This financial vehicle protects you, your family, their family, and your employees and their families. 

Whole Life Insurance

It serves many functions while you are living. It is what the wealthy have been utilizing for centuries—time to stop listening to all the nonsense out there. Banks, Wallstreet, and the Government teach you one way while they do something different. That is why they always win. Don’t you want to use the same strategies Banks and Wall Street use and start winning?

Whether you recognize it or not, you finance everything you buy. You either pay interest to finance companies, such as a bank, or you give up the interest/profit you would have otherwise earned on your money when you pay cash for your purchases.   

It does not have to be this way. There is a strategy in which you do not have to give up this profit. It is called Infinite Banking. Infinite Banking is a financial strategy that enables you to take control of your savings and debt obligations and, in essence, allows you to create your private bank.  

Time to start thinking like a banker and Reclaim the Banking Function in Your Life 

In the world of personal finance, who controls most of the money? Who profits the most? Who always makes money, no matter what the economy or job market is doing? THE BANK OWNER!  

 Would you own a bank if you could? OF COURSE, YOU WOULD! 

If banks kept hundreds of billions of dollars in a safe account that earned them 4-7% every year, would you want to know about it? If it is good enough for banks, shouldn’t it be good enough for you? 

Bankers think differently than most people. They use other people’s money to multiply their wealth. 

Bankers know that the real money opportunity comes from the interest people pay them on everything from cars to homes to student loans to credit cards. 

We are taught to accumulate wealth and to give our money to Wall Street and the banks. Who teaches us that? BANKS AND WALL STREET. WHY?  So, they can create wealth for themselves with your money.

Bankers and Wall Street tell you to park your money with them, yet they deploy your money and keep your money in motion to create more wealth for themselves. Keeping money in motion is called the velocity of money—the more money that is kept in motion, the more money that is created. 

They do not park your money, so why should you?  

Most people think like “consumers,” and so they consume their wealth. But, if you look up the word “consume,” it means “to destroy.” Consumers are Wealth Destroyers. Do you want to continue destroying your wealth? 

What if you could consume AND build wealth at the same time? Would you want to do it? OF COURSE! Why wouldn’t you?  

If you could be your financing source for homes, cars, vacations, college tuition, and pay the interest back to YOUR private family bank and build YOUR wealth instead of someone else’s wealth, would you do it? OF COURSE! Why wouldn’t you? 

What if you could collect a 4-6% return on your money every year instead of the .5% the banks pay you? Would you do it? What if you have access to that money and you never have to pay taxes on that money? Would you do it?  OF COURSE! Why wouldn’t you? 

Would you like to self-finance a business start-up? If you already have a business, would you like to finance your cash flow and simultaneously build your wealth? OF COURSE! Why wouldn’t you? 

We are in a time of low-interest rates, so you probably do not think about the interest you pay to the bank. But it is not about the interest rate you spend; it is about the VOLUME of interest you pay.  

If you want to start living like a banker, building wealth like a banker, and retire like a banker, you must start thinking like a banker. We will help you create your private family bank using a tax-favored financial vehicle we are all familiar with, yet few people understand. It is a strategy the wealthy use and one you have probably never heard of.

Create Your own Private Bank and Create Passive Income with No Work, No Risk, and No Taxes

Retirement Planning

Whether you recognize it or not, you finance EVERYTHING you buy. You either finance it through a lending institute and pay them interest or pay cash for the things you buy and lose all the future value that money could have made. 

There is a better way. The wealthy have been using the strategy for more than two centuries, but R. Nelson Nash popularized the term itself in his influential book “Becoming Your Own Banker®.” 

Unlike your current retirement plan, this financial strategy offers:

• No Market Risk- Will not lose money when the market declines
• Guarantees- A guaranteed minimum Return
• No Penalties- For using YOUR money
• Liquidity- Have access to your money any time you want it
• Protection from Creditors- in case you get sued
• Leverage- Use it to increase your wealth
• Tax-Deferred growth- Pay no taxes on the growth today
• Pay No taxes on the gains- Pay no taxes on the gains when you take money out
• Use as collateral- Use it to borrow money for other investments
• Use to Transfer Wealth- Give your family tax-free inheritance 
• Use in case of a disability- Use it in case you get cancer or other specific disabilities
• Ability to create a tax-Free Pension
• Use to pay for Long Term Care
• Use for Estate Planning Purposes

A Bank Performs a Function

• We all have something in our life that acts as a banking function. When we get paid, rather it is from a job, an investment, or a sale of something we own, our money must go somewhere. 
• Most of us have been taught to hold our money in a bank. But why? What good does it do you? It does you no good once you learn how a bank operates and how you can take control of the banking function in your life. 
• When you deposit money into a bank, the bank puts your money to work immediately. They do not leave your money sitting in your account to do nothing. They lend it out to other people and charge them to use YOUR money. By keeping YOUR money in motion, the bank is leveraging YOUR cash to create a profit. Keeping money in motion is called Velocity of Money.  
• Do you realize how big of return banks make on YOUR money? Banks can easily make a 1,000 to 2,000 % rate of return on YOUR money. Let that sink in for a moment. 
• Where can you get that rate of return? You sure cannot get that in your retirement plan, but you can get that rate of return through your Infinite Banking policy.   
• We are taught that paying cash from our bank account is a great thing. However, every time you use the cash from your bank account, you lose all future earnings that money would have made through compounding interest or another investment. By keeping your money in an Infinite Banking policy, you won’t lose profit.  

You either pay someone else’s bank interest, or you own a bank and pay yourself interest.

It is Time You Take Control of the Banking Function in Your Life 

Once you learn the advantages of using an Infinite Banking policy as a place to store money, you will decide using a bank as a place to store money does not make much, if any, financial sense. By utilizing an Infinite Banking policy as the basis for the banking system in your life, you can:

• Redirect traditional finance costs back to yourself
• Borrow money without your money stopping the compounding growth cycle
• Create an additional cash-flowing asset that is guaranteed to grow every year, without any risk
• Create a way to access capital more efficiently, allowing for additional tax advantages

 You pay your bills through cashflow, not  “asset” value on paper.

What is Infinite Banking? 

It is a strategy describing how to control your finances and use dividend-paying Whole life insurance as a financial vehicle to create tax-free wealth. 

Table everything you know, or think you know, about Life Insurance and read on. This is not your grandpa’s life insurance policy.

You either actively try to avoid paying taxes by planning, or you actively try to pay taxes by not planning.

Why Whole Life Insurance?

• Life insurance has characteristics no other financial vehicle has. It offers compounding interest, tax-free access to money, safety, and liquidity that allows us to create a system that operates more like a banking system than an insurance policy.
• No matter what the stock market or the economy is doing, it allows us to create an additional stream of passive income that will enhance our other investments’ overall growth. It does this through contractual guarantees. The companies we use have been doing this for upwards of 160 years. 
• Most assets are “either/or”. You can either buy a rental house OR put money into the stock market. You can pay off debt OR save money.  Life insurance is an “and/both” asset. It allows you to do multiple things simultaneously by leveraging the cash inside your policy. 
• Not only will you have access to every dollar you put into a policy at some point, but you will have access to tax-free cash flow, protection from creditors, and a death benefit above the cash value on day one. This becomes a self-completing savings strategy. Should anything happen to you, your policy will still pay to take care of your kids or supplement your spouse’s income.  

Misinformation

• There is a lot of misinformation and misunderstanding surrounding “infinite banking.”
• People often confuse the term “infinite banking” with life insurance. Generally, when people think about life insurance, they are completely focused on the death benefit. The death benefit is not the primary focus when implementing this concept. The primary focus is to Maximize the cash value of a policy on day one.  
• This is an important distinction and a big reason many people do not understand it. Those that are against it do not understand how it works. 
• The biggest argument against life insurance is that the person against it almost always compares the low guaranteed returns of whole life (currently at 4%) to a Roth IRA’s returns. 

This argument fails for several reasons

• It fails to address the actual concept of “infinite banking.” The idea of Infinite Banking and investing in the stock market serve different purposes. 
• When the financial industry talks about returns, they talk about the AVERAGE rate of returns. They do not look at the TOTAL returns. Infinite banking is centered around total returns and leveraging your money to create more cash flow, which leads to more wealth. 
• What other financial vehicle allows you to recapture all your lost interest while building wealth AND will enable you to invest your money elsewhere? NONE! And do not forget the death benefit. 
• We are taught to think of whole life insurance policy as expensive and pay a  premium. The truth is, we pay a deposit. A premium is money we will never get back, such as the money we pay for home insurance or auto insurance. A deposit is money we will get back at some point in the future. Eventually, you will get back every penny you put into a policy, plus the growth. 

You either understand compounding interest and earn it, or you do not understand compounding interest, and you pay it. If your money is in a traditional bank, you pay compounding interest. 

How it Works

• When you borrow against your death benefit, your cash stays in your account and continues to compound with no interruption.  You are borrowing money from the life insurance company and leveraging the life insurance company’s money to invest in real estate, to invest in the stock market, to pay off debt, or to finance your big-ticket items, such as cars or your home.
• In addition to the returns you are receiving from the invested money, the money inside your policy is earning dividends and interest at a compounding rate. If you used cash from your bank account, that money would quit earning compounding interest, and you would have no death benefit. 
• When you borrow against your policy, you can use the cash flow from the debt you were paying or cash flow from your investment to start paying back the loan immediately.  As you spend that down, you can use that same money again for another opportunity.
• This ends up functioning as a revolving line of credit and continues growing because the compounding interest is never interrupted.  
• There are other tax deduction advantages when using your Infinite Banking Strategy. 

Advantages over a bank Loan or a Line of Credit

• It is simple. There are no qualifications, such as credit scores, collateral, proof of employment, or income for a policy loan, like a bank loan. Borrowing against your policy does not impact your credit. You simply request a loan, sign one time, and you will have your money typically in 2-4 days. 
• When you borrow money against your policy, YOU decide on the repayment schedule, not the bank. You have flexibility. Flexibility gives you options. If you need to skip a payment, that is ok. Do you need to skip 12 payments? That is ok as well.
• You can use the cash value inside a policy to secure a bank loan
• Interest from a life insurance loan is charged in arrears. This means repayment of the loan goes towards the principle first, then to interest. When you borrow money from a bank, a large portion of those first payments is almost nothing but interest to the bank. Why do you want to continue giving that money to the bank? YOU DON’T
• By borrowing money AGAINST your death benefit, the compounding interest in your account never stops. When you pay cash out of your bank account, the compounding interest rate stops. Why do you ever want compounding interest to stop? YOU DON’T!!
• The loan rate from a life insurance policy is often LOWER than the return you receive from the guarantees and dividend you receive from the insurance company.
• For example, in 2020, a company we use paid a 5.85% dividend. The interest rate they charged on borrowed money was 4%.  This means you still net 1.85% when borrowing money against a policy.
• When was the last time your bank offered you a loan at a lower interest rate than what they are paying you on your savings account? NEVER!!
• In times of credit crunch, you may not be able to borrow money from the bank. 
• If you are a real estate investor, your LTV ratio on the property stays intact because your real estate’s equity is not being used to fund the loan. 
• There are additional ways to keep or to create tax deductions by using this strategy.
• A Home Equity Line of Credit may require you to build up much larger equity in your home to take a line of credit. 
• If you do not pay back your life insurance loan, you may or may not lose your life insurance policy. If you do not pay back your loan from a bank, you will lose the asset your loan is for. 
• A line of credit from the bank can be shut down or turned into a loan at the bank’s discretion. 
• When your policy is used to buy Real Estate, you can reduce fees, such as closing costs, appraisal fees, application fees, and points. 

To start a life-changing strategy and begin making the returns banks make, call us today at 785-430-3717 or Contact Us Here