The Privatized Family Banking System Part IV of IV-Part Series
It is advised you go back and read Parts 1, 2 & 3 before continuing below, to get the full context of this article below. Previously we talked about the best vehicle for Infinite Banking – properly structured, dividend paying whole life insurance, from a mutual carrier. We also covered all the various benefits of utilizing it throughout your life. Next, we will expound on one approach to having this system last for multiple generations.
The intent behind what is outlined below is to help you see an alternative way to have your money flow, in contrast to what is generally taught in public circles, the traditional education system and the financial world as we see it from the publics side. It is also to help set up the next generation for greater financial success (or at least provide some financial relief), and to have the ability to utilize the Privatized Family Bank instead of traditional lenders.
This is the Infinite Banking Concept.
The Multi-Tasking Dollar. Bank now, retire later, leave a legacy. A policy will be used throughout your life for a wide variety of purposes ranging from car loans, to a family vacation, to business ventures, to down payments, college funding and so much more. While you’re using it throughout your life, it will continue to grow and compound. It will continue to build up cash value that far outpaces what you’ve paid in. Then, once the time comes, this same policy can then be used to supplement your retirement income. I have seen reasonably smaller policies being utilized to their fullest throughout ones life, and doing great things for them, then able to supplement their entire 20 years of retirement, tax free. And once they are done living life to the fullest, the money due to the insurance carrier at the time of this persons graduation, is simply reduced from the death benefit, and the difference, paid to the beneficiary.
Did you miss it? One single policy, benefited someone throughout their entire life, then on through retirement and it still paid out, leaving an even greater legacy.
Using it generationally. There will be no way to make the Private Family Bank sustainable and generational, this is, lasting for generations, if each generation in charge does not have (1) the final responsibility necessary to keep it going and (2) does not put forth the effort to teach the up-and-coming generation. What I’ve outlined below is just one idea, of the many, that can be taken for setting up a “system” of banks to utilize intergenerationally.
First, after the first generation (you), the Family Trust will have been set up with some of the proceeds from the death benefits from your life insurance policies. This death benefit will fund The Family Trust, from the get-go.
Second, each generation thereafter is insured, where the beneficiary is The Family Trust. This will help ensure the perpetuity of the family bank for ongoing generations.
The policy owner (in this case, the Trust) has the right to utilize the cash value of policies as it deems necessary. This, I believe, gives The Family Trust more clout to accomplish greater means of funding and loans for family. In this case, each newborn family member should have a policy taken out on them, owned by the Trust, so that throughout their life, the policy is growing exponentially. As the Trust is the policy owner, the Trust has the ability to utilize the cash value of the insured, for the good of the family bank.
As with any endeavor, this intent will not go on unless each generation takes charge and responsibility in raising up the next generation to understand all that this can do. It is the responsibility of parents to teach their children, the responsibility of those managing the Trust to enforce it, and the responsibility of the student to have ears to hear – and between you all, you can see this through, and bless the countless lives around you.
This concludes the 4-part series on Infinite Banking. You can download a complete pdf of 4 articles at www.1024wealth.com/ICOR.
Jason K Powers is a Multi-Business Owner, Real Estate Investor and an Authorized IBC Practitioner. Jason works with clients across the country showing them how to achieve their financial goals by taking control of the banking function in their life and creating financial velocity that can last for generations.
Read the book, Becoming Your Own Banker by R. Nelson Nash.
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Jason K Powers, 303.250.1755, email@example.com