by Rick Wagner (Legacybuilders)
The Self Banking Concept has to be the most brilliant financial concept to come out of this past century, but it has been a hidden jewel as well. You probably won’t hear about it from your advisor, bank or the insurance agent that you work with because it’s not a high commission plan like other things that they work with. But, it is commonly used by just about every bank in the country and thousands upon thousands of businesses across the country. There are virtually no “holes” in it, or “gotcha” problems that someone might be suspect it has.
The concept is about the re-arrangement of money –“to you” instead of “away from you”. This is done by using some of the most secure financial instruments available which allow your money to continue to grow… even while you are using it! It puts your money “in motion” and in essence…pays off debt and builds at the same time.
Well, what the heck does that mean??
It goes like this: It’s a financial strategy implemented to get results. Money is built up over time (but can be started with lump sums) and the owner can “lend” himself money to pay down debt immediately. In fact, within days, the owner has access to up to 92% of the money that was just put in. At the same time, the trained agent of the Self Banking concept will do a spending planner on the individual, family or business and shows PRINCIPLE based financial strategies to live by. It’s basically just a financial thermometer so you know how to structure your financial life.
The agent will usually find anywhere from $300-$600 per month by re-allocating, re-directing, re-prioritizing to “find” money to efficiently finance this concept. Taxation and Financing are two areas that are looked at in this process. With financing, people don’t realize that 34 ½ cents on every dollar are going out to banks or financing companies that is being lost and there is a way to capture that back to yourself with self banking (see http://www.selfbanking.info). In reality, the “found” money is something that the person is already spending anyway. There is NO lifestyle change! There are no big “fees” to start this. There should be, but usually not.
Agents actually take a big pay cut implementing this compared to the typical financial planner “suits” that are out there. Why? Because they are the kind of agents that are actually trying to do the best thing for their clients. Rare nobility in this day and age!
So, what’s the secret? What kind of vehicle is used to implement this? This is where the concept has been well thought out and strategized by the early creators to get the best results.
It has to pass 4 phases:1. A good rate of return , 2. Safe, 3. Liquid (access to it), 4. Tax favored (or tax-free).
By looking at many different products that were out there money markets, cd’s, stocks, bonds, real estate, etc. There’s only one product that works incredibly. A product that the government had to step in on back in the 1980’s and put a limit on it because they (the IRS), weren’t getting their share (imagine that?). It’s a high cash-value insurance grade product that the banks use. This is not your typical insurance product that can be bought by your typical insurance broker. There are only a handful of companies, out of a thousand or so, that will do this. They are mutual companies that are owned by the policyholders and not shareholders (stock owned companies).
So, in essence, “we make the rules for our own good”! And the companies have been around over 100 years and through the great depression. It really has been the backbone of our banking and financial system all along!
One of the best parts of this concept is that it is based out of “contract law” verses “tax law”. Which means that you don’t have the penalties that uncle sam puts on your retirement (age 59 ½, required minimum distribution, etc). This falls under “contract law” and is not under the same terms as your typical retirement accounts (401k, IRA, SEP, etc). So, what happens is that you can access your money by tax-free loans and when you do that, your money is loaned from the general account of the insurance company and not from your own savings!
Did you get that? When you loan to yourself, it’s as if the money never left, and your savings keeps growing like you never took out a loan!!! And it's accessed TAX FREE! What happens is that the death benefit lowers on the plan, and then goes back up when the loans get paid back.
It’s kind of like a “rich” uncle…isn’
There are many other things that make this such an incredible concept, but the top three bullet points are this:
1. Pay off all your debts, including your mortgage, within 10 years…without paying a dime more than you are right now!
2. Give yourself a $300/mo. raise…almost immediately!
3. Increase your savings and retirement by $300.000! (at least, and this is on the low end)
Just ask Mark & Joyce, who implemented the program for themselves. They now have a plan to pay off all their debt, including their home, in 7.75 years (instead of the 29.5 year current plan), and have a savings balance of 1.1 million dollars for retirement (with tax-free access). They will never have to take an outside loan ever again for cars, vacations, college loans (for kids and grandkids) or ever think they will lose it all in probate or taxes!
Businesses that utilize this can use the cash flow that they are already spending every month, and create a very large, tax-free (access), for their retirement. And they can take out equipment and business loans from themselves and keep their “financing”
This is a pretty easy process to get started, but one has to qualify to get it. A two page general questionnaire on your debts, savings, income, etc, gets you started. But, only with a trained Self Banking qualified agent to set it up correctly. Once set up, annual reviews and a life-long process of communication are done to insure that you are on your best course of action in your financial life.
To find out more on the Self Banking concept, you can go to 100yearconcept.com for a video or to the website at 123legacy.com for more information. Or call Rick Wagner (MN licensed agent #40009499) at (651) 327-0077