Speaking to families all over the country about private family banking, I’m always shocked to learn how little they understand about the eroding effects of Federal Reserve banking, and it’s impact on their personal economy.
Everyone is always concerned about the interest rate they are paying, yet they continue to pay the banks interest and fees for access to capital. And, rarely do they question the fees and the costs associated with financing.
Many will research the topic of the Federal Reserve and discover that the system is corrupt, but they feel trapped and frustrated. Fortunately, once people understand how they can take control of the banking function in their lives, their mood changes and they start to get excited.
If there were only one thing to learn about banking it would be easy, but it can get complicated, and the wealthy bankers like it when we’re confused.
So, if you could simplify everything, which is better? Federal Reserve Banking or Private Family Banking? First you have to understand these major differences.
Federal Reserve Banking – Tyranny, Inflation and Bondage
Federal Reserve Banking
Federal Reserve System
Fractional Reserves
Financial Tyranny
Serfdom
Private Family Banking – Liberty and Freedom
Private Family Banking
Private Family System
Capital Reserves
Financial Freedom
Truth
Imagination
Imaginenever having to depend on banks for money. Meaning that you have freedom from bank qualifying and government red tape.
What if you had access to capital at any time for opportunities? Have you ever considered starting a business? Investing in real estate?
What if you could give more to your church or causes you care about?
What’s the difference in banking?
Control
Reserves
Liberty
The banking function is the key component when discussing control. Most people think because they maintain the account they have control. However because of increasing regulation like the Dodd-Frank Act, disquised as consumer protection, the financial institutions control the capital and the bankng function.
During a Brookings webinar, Former Federal Reserve Chair Janet Yellen, said “I personally think we need a new Dodd-Frank.” and “We need to change the structure of FSOC and beef up its powers…”
Controlling it is the most important thing you can do over your lifetime.
~Nelson Nash (Bestselling Author of Becoming Your Own Banker)
What are reserves?
Federal Reserve banks work on the fractional reserve system. Banks are required to only hold 10% of their deposits on reserve, meaning they can gamble with the other 90%. And, if they lose… Well that’s what bailouts are for right?
Ironically, banks store their 10% (Tier 1 Capital) in specific life insurance contracts called BOLI or Bank Owned Life Insurance.
On the other hand, Family Bankers can also own and utilize specific types of life insurance contracts as a place to store their capital reserves. This means they can control the contract and can set the terms for financing.
At the end of the day, if all of your money is in the the federal system, you will pay more, have less available, and keep less for your family.
We typically pay for the major purchases we make with credit through other banking institutions. While debt is the outcome for the individual, credit expansion is the much deeper problem with banking.
This creates a problem for everyone because of fractional reserve banking. Traditional banks lend more than what is on deposit with them, and in doing so expand the supply of money via credit.
The problem is so widespread that a solution seems impossible, but there is a solution. This solution’s only requirement is the action of a single person or family acting in a way to not only help themselves, but in doing so also helps society.
Fractional reserve banking leads to obligations that can not be fulfilled from the outset. The borrower and the depositor actually become owners of the same money.
Financing
When it comes to financing, consumers today face many problems when making major purchases. Questions arise that often lead to confusion.
Pay cash?
Lease?
Finance?
What about the terms and the interest rate?
THE VOLUME OF INTEREST IS THE REAL ISSUE, NOT THE ANNUAL PERCENTAGE RATE.
R. Nelson Nash, Becoming Your Own Banker
If you were offered a loan for an unlimited amount, but the terms were unknown, would you take that loan? That is the loan most Americans are subject to with their Qualified Retirement Plans (i.e. 401k, IRA, SEP, etc).
These plans are dictated by the Internal Revenue Service (IRS), and managed by the financial institutions (traditional banks). They make the rules and they control the assets.
The account balances in these government qualified plans have a tax liability. This tax debt must be paid within a structured time window or be subject to an additional tax penalty.
Meanwhile the average family finances their major purchases on credit, while their money is locked up inside these government plans. Thus creating additional problems of stress and lost opportunities.
Bank Incentives and Wealth Transfers
Financial institutions and banks are forever creating incentives to coax consumers into financing with them. They offer initial low rates, gifts and convenience. But sadly, many times consumers have no idea what they are really signing up for.
Financing will be one of the largest transfers of our wealth over our lifetime, so understanding how to pay for the items we purchase should be of prime importance.
THE PROBLEM IS ALL THESE ITEMS ARE FINANCED THROUGH OTHER BANKING ORGANIZATIONS.
R. Nelson Nash, Becoming Your Own Banker
Privatized Family Banking is the Solution
Privatized Family Banking is a valid solution and alternative to traditional financing. Also known as Infinite Banking or IBC, this private method for financing, provides the ability to create generational wealth without bank rules or qualifying.
What if you discovered that interest rates were not the problem, and that the volume of interest we pay was the real issue we should be concerned with?
In his bestselling book, Becoming Your Own Banker, Nelson Nash explains why the volume of interest we pay is much more important than the annual percentage rates.
Use available savings and cash-flow to fund your “family bank”
Use only dividend-paying, permanent life insurance
Capitalize and establish your plan over time
Use the method to finance your major purchases
Expand your system through a system of banks to increase wealth
Business can use the concept for cash-flow and equipment financing
To learn even more about banking and how you can utilize it in your life, follow this link and sign up for this free IBC video training.
Like our blog? Leave a comment to let us know. Have a question? Ask in the comment section, and we’ll do our best to answer it for you.
Until next time, Barry Page Family Banker and IBC Authorized Practitioner
Barry Page is a Registered Financial Consultant and the Managing General Agent and Founder of Legacy Insurance Agency, PLLC. His specialty is life insurance and educating others on how Infinite Banking works.
How To Become Your Own Banker Using the Power of Whole Life Insurance
In this post I’m going to share with you the secrets of private family banking and how to become your own banker using the power of whole life insurance. Keep reading to learn the secrets for creating generational wealth for your family.
What if you and your family never had to depend on a bank or finance company ever again? If that sounds interesting to you, then keep reading, because I’m going to explain in simple terms, Private Family Banking, and how you can become your own banker.
What is Family Banking?
When discussing Family Banking, we are referring to the method of using permanent, dividend paying, cash value life insurance policies to create a multi-generational banking system.
This Family Bank is private, and grows automatically while shielding your dollars from predators. It also provides opportunities for family members to participate in growing the family’s wealth by financing their major purchases, and possibly investments, without traditional credit reporting.
How To Practice Private Family Banking
You use available savings and cash-flow to build your own ‘bank’
You finance major purchases through your ‘bank’ with loans
You repay your ‘bank’ interest the same way as a traditional bank
You can build a system of ‘banks’ to increase your family’s wealth
Private family banking is not a physical bank. it is a thought process that involves the functions of a bank using custom designed life insurance.
Family Bankers Secrets
The elite and wealthy have understood the secrets of banking for years. Think of the Rockefellors, Vanderbilts, Kennedys, Morgans and Rothschilds.
In more modern times, there’s another famous family you may have heard of that used private life insurance to finance their empire, Walt Disney.
Walt Disney used funds from his life insurance policy, after the banks refused to lend him money to start a theme park, the now famous Disneyland.
Walt Disney
To understand family banking, it’s imperative to first understand how your money flows. Our money flows through our lives and throughout the world, just as water flows through our bodies and the oceans.
Your ability to control your cash-flow is the keyto understanding how to become your own banker.
The very first principle that must be understood is that you FINANCEeverything that you buy – you either pay interest to someone else or you give up interest you could have earned otherwise.” ~R. Nelson Nash
The Problem…
The problem is that all these items are financed by other banking institutions. This means that the interest portion of every dollar spent is perpetual. The volume of interest is the real issue, not the annual percent rates.
The average American family spends about 30% of their income on interest and fees. Compare that to the savings rate of most Americans of about 5% and you can see the discrepancy.
There’s a huge headwind overpowering our ability to create wealth. So, if we could change those ratios to where we were saving 20% or more of our income, while reducing our interest payments, then we could create a perpetual tailwind.
Some of you may be thinking that you pay cash for all of your major purchases and have no need for finance. That’s fine, but the problem is when you pay cash, you lose the ability for that money to ever work for you again. Once it’s out of your system, it can’t earn a return for you or your family, it’s gone forever.
The Solution
Private Family Banking can be the solution to your financial problems. You can have your money work harder by providing you with protection, savings and financing options.
You can create your own system for financing all of your purchases over your lifetime, where you recapture payments that you would normally make to others.
Learning how to redirect those payments into your own financial system is what makes the difference. This can be achieved over time with practice and help from a professional.
How Family Banking Works
Family banking works best through a custom designed, dividend paying, participating whole life insurance policy from a mutual life insurance company. You can not purchase these products direct from the company and they should be custom tailored by an experienced banking agent to fit your financial goals.
Because you have to qualify for life insurance health wise and financially, the companies underwrite each policy. If you are in poor health, you still have alternatives. Contact an agent to learn more.
By utilizing time tested and proven whole-life insurance , you can in essence create a private family bank, never having to depend on traditional banks or the government for money or loans again.
These custom designed Whole Life policies are designed to accentuate cash-value growth, especially in the early policy years. Depending on your state, these policies can also provide other benefits including creditor protection, disability, long term care and tax benefits.
These custom designed policies function like a bank…
By you making deposits and loans
By giving you access to capital
By allowing liquidity, use, and control of your money
By earning a predictable return over time
Saving versus Investing
For the most part, all of the large banks and financial institutions are trying to lure you in to their latest investments, so they buy advertising to convince you that you need to invest with them.
But, we’re not talking about investing here, because that involves risk. And, I’m assuming you don’t want to risk your hard earned money. What I’m going to share with you is the safest place to save money and have it work harder for you.
And… there’s hard evidence that goes back over a century. So, this is not a hypothetical projection of what could happen, it is a predictable illustration of what will happen.
Back to saving… When you think about how you should save, you have to consider many factors. These factors may span a lifetime or they may be for a short period of time. But, even if your reason for saving is short term, eventually you’ll have a need to save again. So, why not use a savings vehicle that allows for uninterrupted compounding?
Most people are familiar with compound interest, but the term uninterrupted compounding often causes some questions.
About Life Insurance
Life insurance companies are some of the safest institutions in the world. For centuries, life insurance policies have provided protection and savings to families and businesses.
Actuaries design and build policies with mortality tables that are based on actuarial data from 10 million selected lives. Lives are selected based on even more data from underwriting statistics, in other words lives that have been underwritten.
How Do Dividends Work?
Mutual life insurance companies use data to calculate annual dividends based on the company’s current mortality experience and their operating expenses.
Dividends are not guaranteed, however they have been paid consistently for well over 100 years by most mutual companies. Dividends have actually increased due to significant increases in longevity.
Why park money in life insurance?
Wherever you park your money, ultimately the reason for doing so is usually for someone to someday be able to spend it. The hard part is figuring out how you can get the most benefits while your money is parked.
It really doesn’t matter where you are in life, the one financial tool that covers all life spans is whole life insurance. That’s because it’s not correlated to the markets and it’s predictable. It protects from loss and solves financial problems.
If you’re just getting started in life, you may look at it as a forced savings plan. The beauty is that it gets better with age. So, as your needs change you’ll find that you can get multiple uses of your same dollars and create generational wealth.
Stewardship
Instead of just handing over your money to your children and grandchildren, a Family Bank can lend them money to teach them financial responsibility. This will in turn increase their success and aid in their independence.
Adult children can also take on the role of stewards and become producers of family wealth, rather than consumers, this distinction is crucial.
So, let’s review Private Family Banking…
Protects your family and business from wealth transfers
Allows tax free access to capital for any reason
Provides a pool of capital for financing
Hedges your dollars against inflation
Can reduce your tax liabilities
Creates a financial legacy
Teaches stewardship
Now that you know this, why would you want to turn your hard earned money over to someone else’s bank? And then have to qualify for a loan, and pay them interest to borrow money???
The Dirty Little Secret
Here’s the dirty little secret about banking and life insurance… The Big Banks own more life insurance than anyone, it’s called BOLI or Bank Owned Life Insurance. The FDIC even recommends they do.
FDIC Recommends BOLI
When you learn how to become your own banker, you can escape the enticement of the banking monopoly and build your own wealth privately.
“The way to get started is to quit talking and begin doing.”
~Walt Disney
Just follow the steps below and get started with “family banking”.
Get Started with Private Family Banking in 5 Easy Steps
Contact an approved family banking agent in your area
Until next time, start banking! Barry Page Infinite Banking Practitioner
Barry Page is a Registered Financial Consultant and the Managing General Agent and Founder of Legacy Insurance Agency, PLLC. His specialty is life insurance and educating others on how Infinite Banking works.
Starting your own private family bank, one that you own, control and can use personally and for business.
When you start an Infinite Banking designed plan, you have essentially created a new business that you own and control. The advantage is, all of the heavy lifting has already been done.
Consider the costs, time and administration of opening and operating a traditional bank. They have to do market research to determine the need, locate property to rent, buy or build, hire and train staff, apply and purchase appropriate charters, and consistently manage the banking operations.
Private Bank
How Private Family Banking Works
With a private family bank the owner controls the business, chooses the terms and has the centuries old administrator manage the affairs. Because the mutual financial system is dedicated to serving you and your family’s interests, it’s essentially your own private family reserve.
The Infinite Banking Concept is not a bank; it is a thought process that represents a major paradigm shift.
Nelson Nash
If you only used the private family business for personal reasons you are creating financial independence. But, if you utilize your “private bank” to enhance your business or start a new one, the profits can be infinite.
To truly understand how private banking works, you have to do some homework. The best way to do that is to read the classic bestselling book, Becoming Your Own Banker by the late Nelson Nash.
Henry Ford said… It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.
When I meet with families for the first time, rarely do they understand anything about fractional reserve lending or the Federal Reserve. Once you do, it’s hard to imagine that anyone would not want to take control of the banking function in their life.
Rothschild family bank dynasty. An illustrative montage of the Rothschild family tree and banking empire.
The Rothschild family bank is probably the most famous and recognizeable example of family banking.
Nathan Mayer von Rothschild established a family banking system throughout Europe during the 18th century. The Rothschilds were pioneers in providing capital for business and financing projects.
Mayer Rothschild wanted to keep the banking fortune within their family and left rules for his descendants on how to handle the family’s finances.
The Rothschild’s family banking empire originated in Germany and established their wealth and influence all over the world. This family banking system established the Rothschild’s family banking dynasty and their wealth has been preserved for generations.
Banking is the most important business in the world.
R. Nelson Nash
Starting Your Own Private Family Bank
Starting your own private family bank is much simpler than starting most businesses let alone a traditional bank.
Private family banking is a predictable way to create financial freedom from the traditional banking system using your own personal capital.
By financing your major purchases through your own “family bank” you bypass normal bank rules and credit reporting. Controlling the banking mechanism in your life can help grow your family’s wealth while creating perpetual banking system.
To learn more about private family banking and how to use the Infinite Banking Concept™ to become your own private banker, schedule a financial review with an IBC Practitioner.
Barry Page is a Registered Financial Consultant, Managing General Agent and Founder of Legacy Insurance Agency, PLLC. He specializes in helping his clients create private family banks using IBC .
This chart from the Federal Reserve website shows that there have been no bank failures in 2018. Now on the surface that seems like a good thing, but when you consider history it’s scary.
It’s our business to teach others how to think like bankers, and follow those same rules in their own financial lives. However, the big banks have a “slight” advantage when it comes to following rules and taking risks, they pass them on to the taxpayers.
Looking back on American history, the longest time we have gone without a single bank failure, was from 2004 to 2007. For a consecutive 32 months, not a single one of the over 7,000 banks in America failed.
In the past 85 years there have only been 6 times over any twelve consecutive month period without a bank failure. The stretch leading up the 2008-2009 crisis was more than twice as long as any other stretch since the end of WWII.
When there is not a single bank failure over an extended period of time, it should be a strong warning sign of major problems. No marketplace that institutes competitiveness can avoid some failure.
Banks are supposed to be in the business of competing with one another to give consumers the best value and most options with their money. In an environment such as this, some will fail, however that doesn’t seem to be the case.
A bank’s failure or success should be based on their business practices for allocating risk, making prudent loans and providing value to their customers. But, that’s not where we are. Instead, financial regulators charged with protecting the safety and soundness of the banking system that is veering toward collapse are applauding them.
Banks again are experimenting with derivatives and other elaborate means to generate profits, while taxpayers are on the hook. The derivatives market has been estimated to be more than a QUADRILLION dollars.
The Fed, FDIC and OCC
In fact, according to the Office of the Comptroller of the Currency’s (OCC) quarterly report on bank trading and derivatives, “derivative contracts remained concentrated in interest rate products, which represented 76.0 percent of total derivative notional amounts”. https://www.occ.gov/topics/capital-markets/financial-markets/derivatives/dq218.pdf
And the FDIC, which is supposed to protect depositors with insurance, is in reality funded by the people. The FDIC loves to tout, “No depositor has lost a single cent of insured funds as a result of a failure.” Yet, the FDIC is backed by the full faith and credit of the United States government…
“My friends, there is good news and bad news. The good news is that the full faith and credit of the FDIC and the U.S. Government stand behind your money in your bank. The bad news for you, my fellow taxpayers, is you stand behind the U.S. Government.” –L. William Seidman, former head of the Federal Deposit Insurance Corp. (FDIC)
Much like other businesses include the costs of doing business into the sale price of their products, banks incorporate these special fees and insurance premiums into the interest rates they offer on their deposit accounts.
And unlike most businesses, banks are given charters by the government, as opposed to licenses. For the most part, you have to pay to play.
Additional approvals are required from the Federal Reserve if, at formation, a company would control the new bank and/or a state-chartered bank would become a member of the Federal Reserve.
Are banks really too big to fail?
Many feel that another financial crisis is inevitable. Would you be willing to support another taxpayer funded bailout of the banks?
“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would a revolution before tomorrow morning.” ~Henry Ford
It really boils down to this, are you comfortable having the banks and the government in complete control of your money? If you’re not, and you want to discover a better way, then request a meeting.
The Mega Banks don’t want you to know their dirty little secrets. They disregard regulations meant to curb risk, blaming such for hurting capital markets and discouraging lending. Meanwhile they lobby for regulations to give them even more power.
Henry Ford – Banking and Money
“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would a revolution before tomorrow morning.” ~Henry Ford
It’s important to understand that the rules are fixed in favor of the big banks, those apart of the Federal Reserve. And, once you understand this, you can make smart financial decisions with your money.
Here are 5 Secrets the Mega Banks don’t want you to know
1. The Money Banks Loan Is Not There… Or Theirs! Banks loan MULTIPLES of depositor’s money. The money that banks lend is created out of “thin air” with virtually NO RESERVES.
2. Traditional Bank Lending Creates Inflation. Banks operate on Fractional Reserve Lending. FRL allows banks to loan out $10 for every $1 on deposit. When money is put into circulation with no reserve, this causes inflation.
Diagram of how Inflation is created by The Federal Reserve.
3. Banks Make Nearly As Much On Fees As They Do On Interest. According to BankRate.com and the FDIC, banking and service fees have escalated. Check your recent statement for “service”, “ATM” and “FDIC” fees.
4. Banks Are Failing At An Alarming Rate. According to the FDIC, in 2012 there were 51 bank failures. Like most federal agencies, the FDIC is broke.
5. Banks Own A LOT Of Permanent Life Insurance, Called BOLI. The FDIC recommends that banks own BOLI (Bank Owned Life Insurance). All major banks own BILLION$ in BOLI.
The FDIC Recommends BOLI
So, why would you want to turn your hard earned money over to someone else’s bank? When you learn how to become your own banker, you can escape the enticement of the banking monopoly and build your own wealth.
To learn more about banking and how you can utilize it in your life, download a free report:
Family banking is a way for families to use their own capital to create their own family banking system.
