How To Become Your Own Financier On The Interest & Finance Charges You Otherwise Pay To Banks & Finance Companies!

DISCLOSURE: This concept employs the use of dividend paying whole life cash value insurance as the funding mechanism to accomplish the goals of significant asset accumulation for the purposes of creating the funds to enable one to have their own "Bank" and/or be your own Financier. The funding product and the design configurations used are very efficient and effective in assisting in producing these results. We understand that you may not be familiar with all of the tax and other benefits of this funding vehicle, and ask that you reserve judgment until a detailed facts proposal is presented to you for your fullest consideration.

You Can Use This Little-Known
But Proven, and Time-Tested Strategy To...

ü       Recapture the interest and profits you now pay to banks and finance companies!

ü       Finance a car, house, credit card debt or college education—yourself!

ü       Wake up at the beginning of each and every year with more wealth than you had the year before!

ü       Create a tax-free stream of income for life!

ü       Eliminate banks and finance companies from your life and gain control over your money!

ü       Win the financial freedom game!

ü       You can benefit from this strategy even if you typically pay cash for major purchases!



When You Send A Payment To A Bank Or Finance Institution, Do You Ever See That Money Again?

Here's How To Recapture Those Dollars By Becoming Your Own Financier, Plus...

ü      Get triple compounded interest on the money you recapture

ü      Use it to grow wealth without risk

ü      Eliminate banks and finance companies from your life

ü      Gain control of your money

ü      Create a tax-free income stream for your retirement

The Easiest Place For Most People To Start Becoming Their Own Financier Is By Self-Financing Their Own Car...

ü       Unfortunately, there's no such thing as a "magic bullet"—I can't
          show you how to finance your own car starting tomorrow,
          because...

ü       If you want to become your own banker, there's going to be a
         "start-up" or "capitalization" phase, just as there is when you
          start up any new business

ü       However, you can become your own banker for your car in just
    a few years...and once you do, you'll never have to throw
    money away leasing or financing a car for the rest of your life!

To Understand How This Works, It Helps To Look At The Ways People Typically Purchase A Car...



The 3 Wrong Ways and 1 Right Way to Purchase A $25,000 Car...

To keep this illustration as simple as possible and to compare apples to apples, we are making these assumptions:

1.       We are not factoring in any down-payment

2.       We are not factoring in any trade-in value a car may have

3.       We are not factoring in inflation

4.       We are assuming you will buy a new $25,000 car every 4 years, from age
            40 until you turn 80. Of course, you may spend more on your car, or less,
            or you may be older or younger than 40. Just keep in mind that this
            example gives you a starting place to understand the power of becoming
            your own banker

5.       We assume a conservative historical interest rate on your car loan or lease of 7.5%. (Do you remember it wasn't long ago that car loan interest rates were higher? In 1997, it was 7.99%, in 1994, it was 8.5%¹, in 1991, it was 11%²)

6.       We calculated the "lost opportunity cost" (LOC)—which is what you would have earned by investing the interest you gave to the finance company, by assuming you could get a 5% return (long-term) on that money, had you put it into a savings account instead

7.       You pay taxes on the income you earn in a taxable savings account at a rate equal to your combined Federal and State income tax brackets

¹ USA Today² Kiplinger's Personal Finance Magazine

Option 1: Lease The Car

ü  Your monthly payment is $416, of which $57.56 is interest (current interest rate on leasing is about 7½%)—you do this for 40 years (leasing a new car every 4 years)

ü Total Cash Outlay = (-$199,680)

ü LOC [Lost Opportunity Cost]= (-$60,208)
(i.e. the lost earnings on the interest you paid
to the Finance Co. or Bank)

ü Your total cost = (-$259,888)

Other Drawbacks of Leasing:

1. You have no equity and you get nothing back at the end of each
     lease!

2. You typically pay a large down payment.

3. Lease company may make you pay extra for depreciation, wear
     and tear, or high mileage.

Option 2: Bank Loan

ü      Your monthly payment is $604, of which $84 is interest—you do
         this for 40 years (financing a new car every 4 years)

ü      Total Cash Outlay = (-$289,920)

ü      LOC = (-$87,489)

ü      Your total cost = (-$377,409)

ü      You get nothing back from the finance company at the end of the
         loan!



Option 3: Pay Cash For Your Car

ü      You take $25,000 out of your savings account every 4 years to pay cash for your car—and you do this for 40 years (10 cars total)

ü      Remember—you finance everything you buy—you either pay interest to a bank or finance company OR you give up the interest you could have earned on your money had you invested it, instead of paying cash for a depreciating asset

ü Total Cash Outlay = (-$250,000)

ü LOC = (-$544,797)

ü Your total Cost = (-$794,797)

ü If you are disciplined enough to make monthly payments into a savings account to accumulate $25,000 over 4 years to pay cash for your next car, your LOC will be less, however, you'll pay income taxes on the growth of that money in a taxable savings account or money market fund

Those Are The 3 Most Common Choices...But There's a Fourth, And Very Intriguing Option...

Harness The Incredible Power Of A Strategy That Has Been Around For Over 200 Years, But Which Very Few People Or Financial Advisors Know Or Understand...
AND ... Here's How It Works...

Option #4: The ONLY (Right) Way! - Become Your Own Financier

ü   Your monthly payment is $604/month for 40 years, the same as you would pay if you took out a bank loan.

ü   When you start a business, whether it be a finance company or any other kind of business, isn't there always a "start-up" or "capitalization" phase? Of course there is. And since you're building up your own "bank" or finance company, there's a capitalization phase necessary to do that. In this case, it's going to take a 5-year start-up period.

ü   After the fifth year, there's enough in your account to withdraw $25,000 and pay cash for your car. Then you start making your $604/month payment to your own "bank", instead of to the finance company.

ü   This is a commitment you must make to yourself—to make the same payment directly to your own "bank," just as any outside banker or lender would have required. Remember, there's no such thing as a "magic bullet"—this is what it takes... this is a strategy for practical people willing to make a change in how they manage their finances.

Here's What Happens When You Finance Your Own Car...


ü       Your Total Cash Outlay over 40 years is $289,920 (the same as if you financed your car through an outside finance company), however it's all going into your own "bank" instead of someone else's (which is why it's listed in the "positive" column) and...

ü       It grows to a Total Value of $461,139 in your Plan in 40* years and...

ü       It grows with triple compounded interest, the "Eighth Wonder of the World," because...

·     First, you earn money on the principal you pay in

·     Second, you're earning money on the interest you would have paid to a finance institution

·     Third, you're earning interest on that interest!

ü     Because you had a "capitalization phase" of 5 years to start your own "bank", you're getting the use of 9 cars over 40 years, instead of 10 cars in the previous examples .

* Based on current interest rates and assumptions and individual contracts and withdrawal features

Isn't This A Small Price To Pay For Recapturing All Of The Interest You Would Have Otherwise Given To A Finance Company, Never To See It Again?

Now think about this...how much did those 9 cars really cost you?



They really cost you NOTHING, since you recaptured every penny in your own "Bank" and then some!

A Chart On The Four Ways To Purchase A $25,000 Car

Option 1       Option 2      Option 3              Option 4

Option 1       Option 2      Option 3                Option 4

                                       Lease        Bank Loan     Cash             Become Your Own Financier

                                   (-$259,888)     (-$377,409) (-$794,797)

                                                                                                   +$461,139



The financial difference to you between financing a car through a bank and financing it yourself is: $838,548!

[i.e. from a negative -$377,409 cash outlay through a Bank loan, to a $461,139 POSITIVE GAIN to you when doing it through YOUR OWN BANK!]

And That's Just For One, Car!

After 5 Years, You'll Never Have To Go To A Finance Company Again To Finance Your Car, And...

ü       You'll be recapturing every cent you would have paid to them!

ü       The money you recapture will grow steadily in your Plan and you can borrow
       your equity in the Plan whenever and however you want, tax-free, and/or you
       can take it as a tax-free stream of income!

ü       If you purchase a car or other item through a bank or finance company, and an unforeseen event cuts off your income and you can't make your monthly payments, what happens? They'll come and repossess your car, foreclose on your home, send the collection agencies after you, ruin your credit rating... and in general make your life unpleasant.

ü       However, when you use your own "bank" to finance purchases, and your income stops for a few months, you can simply skip some payments or pay less for a while—it gives you flexibility and peace of mind and control over your own money.

There Are Still More & Additional Benefits of Becoming Your Own Financier...

1.       Even if finance companies are still offering low interest rate loans, you'll come out ahead by taking the rebate instead and financing your car yourself.

2.       Unlike a taxable savings account, you have access to the gains on your money anytime you want—tax-free!

3.       You can take it as a tax-free stream of income at retirement, and—unlike a pension plan—there are no government limits on how much or how little you can take each year and no early withdrawal penalties!

4.       You don't have to wait until you retire to get your hands on your money!

5.       You had the use of 9 cars over those 40 years and still increased your wealth by $461,139!

6.       Imagine what happens if you do this with 2 cars instead of one!

This Concept Can Also Be Used For...

ü       Your mortgage
ü       Credit card debt
ü       Funding college education for your kids or grandkids
ü       Other small or large purchases you would typically finance
ü        An equity line of credit you can use to finance things you want to buy, or for an emergency... with the interest you would normally pay to a finance institution going into your own pocket instead

ü    AND ... Business owners with C-Corporations—

-- Using this Concept, you can purchase the equipment yourself and then lease it to your corporation...and get the interest deduction and depreciation...and you'll recapture all the interest you were paying to the finance company!

You Have A Very Important Choice To Make...





             OR.....................................

Be honest now, and think about it ... which of the above options makes the most sense to you?

Interested to learn more?

Well, we have studied in this strategy, about which most advisors are not aware, with its creator Nelson Nash, who has done this now for well over 25 years, and who has written the book “The Infinite Banking Concept”. The book (approx. only 100 pages) is not available in bookstores, however, we have a limited supply of the latest edition and would be pleased to provide you one if you'd like to get together to find out more, or if you too want to start your own "Bank" now.

Please call us with your interests: 800.482.5347

While a great deal of care has been taken to provide accurate and current information, the ideas, suggestions, general principles and conclusions presented here are subject to local, state and federal laws and regulations and revisions of same, and are intended for informational purposes only. Always consult with a qualified legal or tax counsel regarding current laws and regulations and how they apply to your situation. Figures that are shown here are based on current interest rates and assumptions, which, of course, are subject to change. © 2003 PMI, Inc. Revised 09/23/03. Adapted by LFIS 1/15/04.

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