Video Transcript: Become Your Own Bank Now!

Okay, well, welcome back to this is Alex Barron with wealth heritage and financial freedom and Success Institute, sharing with you the conclusion of the financial security seminar How to Become your own bank. So, I'd like to show you some examples, some ideas of how you might be able to implement this in your real life. 

The guy who started this concept, Nelson Nash called the Infinite Banking concept, and he calls it infinite because in reality, it's up to your imagination, the many uses that you can have for it. But I thought I might be able to show you a few examples of how this might work for you. 

A lot of people say I don't have any money to save, right? Well, you should really take some time to look at the financial freedom series, seminar, seminar series that we recorded separately, which might be able to help you take control of your finances by getting rid of some of the debts and therefore create some cash flow. 

Typically, the become your own bank program may not be for everybody right away, until you develop a little bit of cash flow. But once you have enough to cover the basic cost of the insurance, people then ask. Well, how am I going to find the additional cash I need for the paid up additions. And what I've seen is that most people typically are driving around in a brand new car, which typically cost them anywhere from $250 to $1,000 a month. And for those people, I do think that this concept could work if they were to restructure their thought process in their payments a little bit. 

So how do you do this, you need to think of it in terms of five steps. 

First of all, you need to start your insurance plan and have in that plan, at least three to four payments. In the event, you can't do that if you have some money sitting around in a in a savings plan, in a savings account. Typically, that might be what helps you out, then, once you do that, you can deposit part of that savings into the paid up additions. And after that money has been there for a month, the insurance company will then be able to start lending some of that back to you. What you do from that point on is that when you receive your paycheck, you immediately send the portion that you would have sent to your car payment to the insurance company in the way of a monthly withdrawal. Once they get it, they're gonna basically sit on that money for typically three to four weeks, but they'll be able to lend you the money that you have sent in earlier from your savings account. 

So in a sense, you start a little cycle where each paycheck you're sending in some money, but you're simultaneously borrowing money from money that you have already deposited the month before. When you do this, use the money that you're borrowing, you can use it to pay off your car. 

So think of it this way every month, you're putting money in every month, you're taking money out. And in the meantime, your insurance is going to start to climb steadily every month. And this way, and by the time that you finish paying off your car, you will have more insurance to show for it. And once you finish paying off your car, then you spend the next few months paying back the policy loan that you have with your insurance plan. 

The next time when you need to borrow from, for the next car, you're not going to borrow from a bank, this time you're going to borrow from yourself from your own bank become your own bank plan. So one of the benefits of doing this, the benefit is essentially that the death benefit is going to go up, the amount that you contribute to the paid up additions is going to be maximized. And before you know it when you're going to be no longer needing a bank to fund your next car purchase. When you eventually finish paying off bank loan as I said, you then are going to have to pay back your policy loan. 

But by this point when you've gained as financial independence because you no longer need a bank for the next purchase. So that's basically how to how to do this. Right. So the trick is stopped in for many people. A lot of times people say I don't have money. Well sometimes Do you need to do an analysis like we showed in the financial freedom seminar, analyze where your money's going carefully, also stopped funding some of your other retirement plans, for example, your 401 K, your IRA, as we said, If you disperse your money everywhere, you're not going to be able to accomplish too much. If you concentrated and focus and focus your efforts, you're going to be able to make this work. 

So let's look at an example. For example, for funding kids college education. A lot of people feel responsible for funding their kids college education. Yep, sadly, when they turn 60, or 65, they have no money for themselves for their retirement. Why? Because they gave it all to the kids, what I started to recommend to people is to maybe consider a slightly different plan. If you had one of these accounts become your own bank account. 

You could lend your children money to go to college, with the arrangement or with the understanding that once they get a job, they're going to repay the money back into your life insurance plan. Why, so that you can lend it to either the next child or so that you could have it back for when you retire. At the end of the day, when you pass away, who's going to get your death benefit anyway, most likely your children or your grandchildren. 

So this can really become a way where the older generations help the younger generations, but where the younger generations pay back the money to the older generations, until they pass away, and then the money gets basically sent from generation to generation. That's why I was saying earlier that you can really set your family up for life. And for the rest of the life where you basically they won't need banks, if you set this up correctly. So let's look at an example here. Let's say we have a mom, who maybe had an IRA or 401 K, she decided, you know, I'm not gonna do that plan anymore. So I'm gonna go ahead and sell it off, or maybe she gets an inheritance. Or maybe she's gonna sell the home or something. 

But let's just pretend that she's able to fund this policy with $35,000 a year, for the first five years just to get it going. Right? Simultaneously, while she's funding it, she's also going to borrow $15,000 for four years to lend it to her daughter, who's going to go to college. The arrangement is that once the daughter go to the college, she's going to pay it back, repay the loan, with the interest back into her mom's plan. 

So the way this would work is the mom makes the payments, then she drops down to some lower amount of money that she can afford to pay into her plan. The daughter borrows the money, right. And then after a few years, once the daughter is stable and has a job, she repays the money back into her mom's life insurance plan. Once she does that process, what's going to happen is the cash value might go down temporarily. But eventually it's going to go back once the money's coming back into the plant. And all along, this person was covered and had death benefits in case something were to happen to her. Eventually, something does happen to her. Right, she would leave this money back to her to her daughter. 

So this case, let's just say that by the time this mom reaches 61, she wants to supplement her income. So she wants to take out a $30,000 loan per year to start living off of that money. Right over here, maybe she increases it to 50,000 for these years. Okay? How much money would she have in the plan at the age of 60, she'd have approximately $643,000. And if she's taking out $30,000, and then here $50,000. The plan is going to start to go down initially in terms of cash value, but because the plan is also making interest, it's not going to go down as fast as you would think. 

So what does this do this allows the mom to live off the money that she put into the plan and have a retirement income that she can live off of. So when she passes away, this money would then be inherited to her daughter. So this is both a way how you can fund your kids college education as well as take care of your own retirement. 

Let's look at a second example. This is an example where a man is going to take money for example out of his IRA to say he's getting close to retirement age. Maybe he decides that's no longer a strategy. He wants to pursue. Or maybe when he reaches the age of 59, he decides to start taking out minimum required distributions. And the whole idea is to turn a taxable account into a non taxable retirement account. 

So let's say he starts funding this with $50,000 premiums. For some of you might say, I don't have $15,000. That's okay. Like I said, just follow the concept, you can always adjust this to something that's more suitable to your income and your asset levels. But let's look here, this guy, he has a business that he needs to find. So he starts funding this initially with money from his IRA. And for example, let's say he has an opportunity to buy a property and remodel it and fix it and flip it. So he puts in, he borrows $75,000. How much cash value did he have at that point? He had $80,000, the year before. 

So he borrows $75,000. And he's gonna pay it back over the next two years with interest back to himself. Right. So he borrows 75. Essentially, he paid back $80,000. So that's the interest. So what happens to the cash value? It's $244. Now once he puts the money back, because he's still putting in premiums, and he's putting the money back from the loan repayments. 

Next time around, he borrows $150,000. Where did he get that money from? He's got $244 right here. So he borrows $150,000. Maybe he buys another house, he fixes it, and he flips it. And he paid some money back over the next two years. Now the money is back in this fund. How much has he contributed up to this point? $283. How much cash added to the house $312? Where did the difference come from? Well, it comes from the interest that he put in, plus the interest that the plan is paying. How much death benefit does he have? He's got 1.4 million, he started off with only $900,000. He's already grown his death benefits through the use of depositing extra money into the fetal position. 

And from returning the money back from his plan. He continues his process regimes funding the policy. He keeps taking loans out, he keeps paying them back with interest. He takes the money out and he pays it back with interest. He takes the money out, let's say right here, he gets some money from his own parents who passed away left them an inheritance or something. He's able to basically repay the money right here, right? That he had been borrowing before. 

Let's see right here. He starts taking out of distribution. He's 66. He says, Okay, I want to live on $75,000 a year. How much money does he earn this plan. He's got $520. So he starts taking out $7575 75 in the form of a loan, if you notice his loan column is increasing right here. He repeat part of it, maybe from an inheritance he received but the rest of the time he's taking money out to live. Let's say by the time he gets to $77, he doesn't need $75 He only needs $40,000. To live on at that point. Maybe he's sold some properties or something to bless others and require it if you notice his cash value starting to go down. 

But it's not going down any faster than his ability to withdraw. At some point, let's say he passes away. By the time he's 80. He still had $391,000 in cash left. And $945,000 of death benefit that he would pass on to his family. How much did he contribute in terms of premiums over her life, his lifespan? Only $600,000. And yet, he's still able to leave 50% More than that, in terms of a death benefit. 

So what I'm trying to show you some ideas and some examples of how you might be able to use a plan like this for your own benefit to fund your kids college education to fund business or investment opportunities and eventually to withdraw that money to live on during your retirement age. 

Let's look at this last opportunity that say that this or this last example. Let's say that this person basically well to think of the same example. So let's talk now about how wise is this conventional wisdom? Most people when it comes to retirement, where is it that they have their money? Most people have their money in an IRA 401 K which is a government sponsored retirement plan, right? What this means is that they set the rules up for when you can take the money out typically you can't withdraw the money unless you pay a 10% penalty before, you're 59 and a half, and you have to withdraw the money by the time you're 70 and a half, otherwise, you face a 50% penalty. 

Now, a lot of the gurus on TV, the entertainers, they're gonna tell you, Oh, you know, you should put your money into mutual funds and 401 K and IRA, because over the long term, the stock market is going to go up 10 to 12%. As we already showed earlier, that's not true, the stock market at best goes up maybe 5% a year over the long term. And when you consider fees to manage your money plus taxes, you're gonna get at best, maybe 3%. So why not put it into a safe retirement vehicle, like one of these types of policies that can grow tax free at a rate of three to 4%? Right? 

So basically, the idea is, why would you want to take a gamble. With the money that's supposed to be there for you, when you retire? You really need to think twice about new strategy with your retirement money. It's one thing to put aside some money into a safe plan, like one of these whole life dividend payments policies that we show that we call become your own bank policies, versus putting your money at risk in something that's going up and down in a Wall Street Mutual Funds. Now, other people are so scared that they leave their money in the CD in a bank, we already showed you, that's not a good idea.

 If you have money that's in a CD, one to give us a call, we have a strategy where we can show you how you can make a 6% rate of return on your money cash return, year after year after year. If that's of interest, give us a call and go to wealth heritage.com or call our office 915-637-5040. And we can help you explain how you can make a better return on your money. 

Now, some people would say, Well, what's better getting out of debt, or investing? Typically, I would say for most people, it's a safer and more guaranteed thing to do is to paying get your get out of debt. Especially if you have credit cards, as we discussed yesterday, when you have credit cards, you typically pay interest rates that can be anywhere from 12% to 20%. I've even seen credit cards that offer 40% Charge 40% interest, why would you want to do that, and put your money at risk and stock market or mutual funds or for one carrier when you can't even access it. And when your money is going up and down when over here, it's a for sure thing that that debt is going to be sucking the money out of your life. 

You know, don't do that. Set yourself up for success. Pay off your debts. start becoming your own bank, use the money you put in to create a death benefit. And then use that money to borrow and pay off your debts. Once you're rid of all those bank debts, pay yourself back the money that you borrowed. And then start to watch your money grow and then decide which risks are suitable for you to start investing in if you find good opportunities. 

Now how much should you be putting into these plans, I would say at a minimum you should be putting in 10%. Ideally, if you can do more than 10%, comfortably, maybe 20% 30% of your income, that's great. Go ahead and do that. But definitely start your plan with at least 10% of your income. And when I say 10% I mean 10% split between the base the term and the fate of petitions, usually I think a good idea is to put in about 20%  to 25% of your budget for your become your bank account into the base and the term and the rest of it 75 to 80% going into your paid up additions.

So as I said, you know, try not to chase big rates of return, it's better to have a safe return. That's gone growing consistently than to be going after a 10 to 12% return that may not be even realistic in the stock market. 

So how do you get started, if you if I've convinced you that this is something that you should look into, like I said, give us a call. We can explore this on a one on one setting. But the main thing is if you have the desire, you're almost there. The next thing you have to do fit into your research is make a decision. If this is something that you want to do to set yourself up to protect your family, make a decision today and give us a call we can help you. 

You know we might I'd be able to do it ourselves. And we can refer you to one of our other partners who know how to do this. Select an agent, it's very important to find an agent that you like, that you trust that you feel understands you. Somebody made me who even lives in the area where you live in today, you can have agents that do remote thing, but some people might prefer somebody who lives next to them, whatever, which makes you more comfortable. That's the way you want to go. But look for somebody who's a coach, somebody who wants to walk with you step by step and explain to you how to best do things. 

You know, one of our things that makes us really happy is to be able to sit down with people one on one, and walk them through a financial plan so that they know step by step what they have to do month after month to get out of debt, and to set their family up. 

Hopefully, by now you've concluded that becoming your own bank, is really the best thing that you can do for yourself and stop depending on commercial banks. I hope that you've taken advantage of a lot of the things that we've taught you in terms of how you can prosper. As I said, prosperity is something that you can that can be taught and something that you can learn. It's not a question of luck. It's not a question of a hope. It's a strategy. If you sit down to review these principles, over and over and over again, until it makes sense, you'll be able to start taking control of your life, you'll be able to start taking control of a banking function in your life. Rather than leaving that control up to some bank, who frankly doesn't care. What happens to you personally, this is not a get rich, quick scheme. 

This is not a scam. This is simply a different way of thinking about life, in a different process for managing your money. So we appreciate the time that you spent with us watching these videos. We appreciate the time that you've taken to look at this concept. But definitely read up on it. There's a few books out there, the Infinite Banking concept how to become your own banker, we have our own book, financial security, if you want to reach out to us for a copy. There's another book that I recommend to people called the bank on yourself revolution, which explains to this we're one of the authorized consultants with bank and yourself that it can implement this, this process with you. 

So if we've been of help, and if you'd like to reach out to us, here's our contact info. Financial Freedom and Success Institute, 13 Diamond Crest Ln, EI Iaso TX 79902, seminarsfinancial@freedom.org (915) 637- 5040, You know, give us a call, send us an email. We'd love to explore if there's any way that we can be of help to you. 

But whether we help you out or you reach out to somebody else, my goal is to simply hear from you. Here, find out that this program was helpful to your financial well being. And I really encourage you to learn how to dare to prosper. Because financial freedom is something that your family deserves. It's something that you deserve. And it's something that if you make it a priority in your life, I'm convinced we'll make it all worthwhile. And when you look back, you gonna say thank God for these videos, which really set me up on a path to success. Thank you very much. Appreciate your time. This is Alex Barron signing off with wealth heritage and the financial freedom and Success Institute. Thank you so much and God bless you dare to prosper