Do you want to build a family banking system that will provide capital to you and future generations? Come see behind the scenes as we talk about our Marshall Family Bank in real-time. https://www.youtube.com/watch?v=0buUbqGs5QQ Today, we discuss why we added another whole life insurance policy, how our cash value is growing, and our vision for using our family banking system as the foundation to grow generational wealth. So, if you want to see exactly how and why you can grow a family bank strategy to secure capital reserves for your family for generations to come… tune in now! Table of contentsWhy We Use Life Insurance for Our Private Family Banking SystemIdentify Your PrioritiesSafetyLiquidityGrowthThe Evolution of Our Family BankAdding a New Policy to the Private Family Banking SystemHow a Family Banking System Works in Real LifeWhy Get a Second Life Insurance Policy?Myths & Misconceptions About Private Family BankingTake the Next StepBook A Strategy Call Why We Use Life Insurance for Our Private Family Banking System Whole life insurance has the benefit of being a protection asset, as well as a place to store wealth. Just like you would tuck money in the bank, so too can you store money in a specially designed whole life insurance policy. The added benefit is, as Bruce states: [4:45] “You’re storing [money] for a reason or purpose. And if you want to try to maximize your wealth, what you really are looking for is what to do to keep that money in motion.” Whole life insurance does a few things for your savings. It keeps your money safe in a way that banks can’t. It allows you to grow your money with interest and dividends, and it provides you with the opportunity to leverage your money. The leverage piece is important because it gives you access to capital while being able to benefit from uninterrupted compound growth. Ultimately, we’ve chosen whole life insurance because it helps us align our money with our family’s purpose and mission. Identify Your Priorities With wealth-building and wealth preservation techniques, there comes a time when you must identify what is most important to you. The “big three” options are generally safety, liquidity, and growth. While you may be able to have all three components working for you, you only get to maximize two of the three. Choosing which one or two of these components you’re going to prioritize and maximize is critical. Safety Safety refers to how secure your money is. How much are you putting at risk? Is a lot of your money tied up in risky or volatile assets? The safety of your money may also depend on what debt you have and how well-protected your money is from creditors. Likewise, you can make your money safer with things like umbrella and liability insurance, to protect yourself from lawsuits and other things that erode your wealth. For safety, there’s often a cost trade-off. Insurance, for example, can protect your money from prying eyes, lawsuits, and liabilities—but it costs money. Similarly, you may feel that by not investing in riskier assets, you’re not maximizing your dollars. Liquidity Liquidity is how easily you can access your money. If you tie your money up in long-term investments and projects, it’s probably not very liquid. While you may not need all of your cash to be liquid, it’s important for many families to have an easy-to-access pool of money for emergencies and opportunities. Growth Growth is what most people think they want, which leads them to invest unwisely. Prioritizing growth has the potential to skyrocket your wealth. But depending on how you want to achieve your growth, it can be risky. And how much is growth worth if you lose it all? Similarly, you may think it’s a good idea to invest in or acquire lots of low-risk assets. But if they aren’t liquid, how much are they adding to your quality of life? While you may not maximize all three of the above components to wealth, you can have a pretty solid balance. Whole life insurance is one of those assets that scores pretty well in all three categories. Your insurance policy is protected from creditors and the IRS (as well as death), and the cash value is a liquid pool of money. And while the growth on a whole life insurance policy alone won’t make you rich, it does more to keep pace with inflation than the banks, and can be leveraged for investments that grow. [14:24] “We are willing to sacrifice a high growth for the maximum amount of safety and liquidity. And the reason for that is we are confident… we can earn a return in two places simultaneously, and that we can earn a much better return externally, outside of our policy.” The Evolution of Our Family Bank We began implementing the Infinite Banking Concept in 2012 with a policy on Lucas. The policy was with a mutual, dividend-paying company, and had an annual premium of about $10k. This policy served us well for a long time. We took out many policy loans over the course of having it, which we repaid with the cash flow from our b
