James Cunningham
RFC, CEP, MCEP
Creator of the Family Bank
Imagine Placing your Finances in a Huge Vault that is Three Feet Thick and that is Impenetrable by all Liabilities, Risk and Market Volatility.
This is the concept of the Family Bank
Reduce your taxable income while providing a legacy for your family. The Family Bank is the cornerstone of the CFG Consulting LLC strategy for Financial Independence
No other account or financial structure allows you the POWER of Liquidation than the structure of the Family Bank.
The Family Bank is custom built for our clients based upon the following structure:
- Protect what you have.
- Learn how to take control of your cash flow.
- Investing wisely and learning that there are ways that you can invest money earning great rate return without any risk.
- Manage taxes, most people work and tell mid-May to pay all the taxes that they have to pay to the government without realizing that there are legitimate and easy steps, especially for business owners, to minimize the tax burden.
- Save for retirement
- Leaving a legacy for your Loved Ones. Leaving a legacy includes getting the proper amount of insurances as well as establishing a family trust and will.
What is wrong with most traditional savings, bank or investment accounts?
If you take any account, a bank account, an IRA. A 401(k) etc. it doesn't matter the obvious downside of most traditional accounts is taxation. The vast majority of accounts are taxed when the money comes out or like a mutual fund is taxed each year on the gains.
With the concept of the family bank, when you have $20,000 of cash value in the policy. You can then leverage or borrow $20,000 from the insurance company. That way you get to keep the $20,000 earning what ever the S&P 500 is going to earn that you never ever liquidate the $20,000 nor eliminate the potential compounding interest from the growth of the $20,000.
If you could keep all or most of the money you now pay in taxes and interest charges, the compounded effect of the savings would literally change your life; financial independence would become a foreseeable reality; and a myriad of options would open up for you and your family that today are only fantasies.
Most insurance companies do not offer this particular product because, as opposed to the usual life insurance policy, it is designed primarily to accumulate significant cash values that can be accessed tax free during your lifetime and only secondarily designed to pay tax free benefits following your death.
Does the Family Bank use a Whole Life Policy?
No, we find there is obvious downsides to the Whole Life Policy that you may be aware of. When people take a loan from a whole life policy it literally drains the policy by that loan amount. The second problem with whole life policies is they have a fixed interest rate, typically 8%, that is always being charged against the loan.
Our equity index policies eliminates both of these problems. First, the loan is literally collateralized against the death benefit of the insurance policy and the cash value still is wholly intact.
This is a very powerful concept that makes it very difficult because it seems too good to be true for most people to understand.
Another benefit to the family bank fixed equity indexed policies is that the interest rate has a crediting to it. Meaning that if the policies are 10 years or older there is no interest charged against the loan.
Let's take a look at the expense of buying a new car.
Let's say that you have $20,000 in the bank account. And you decide that you need to buy a new car. Let's say the car would cost you $20,000.
For the most part there are two ways to purchase the car. First, you can get a loan for $20,000 from the bank or you can get a loan from the auto dealership. If you do that they will make you pay it back over, say five years, at a specific interest rate, that say that happens to be 7%. That would be a monthly payment of $393.73 for 60 months, or five years.
At 7% interest that would mean that this individual would pay a total of $23,623.63. But that is not the real cost because most people will pay that payment with after-tax dollars so if they're in a 10% tax bracket well in order to buy the car, they had to pay 10% tax on that $23,623 purchase. Now the $20,000 that was sitting in the bank account also accrued interest the say that the bank paid a whopping 1%. At the end of that five-year period the $20,000 in the bank account earning 1%, had grown to be worth $21,024.98.
This obviously seen that it was not a good deal. The second way is that you could buy the car is you could take the $20,000 out of the bank account. Completely drain the bank account so that you have nothing left and the car is free and clear. Five years later the car still paid off but the bank account is still zero now this option would be a better option than the first one because as you could see there was an upside down factor between the bank account and the purchase of the vehicle.
And again keep in mind it doesn't matter what type of account it was if you drain money or liquidate money that money is gone forever and the potential interest could have earned is also gone forever.
With the concept of the family bank, when you have $20,000 of cash value in the policy. You can then leverage or borrow $20,000 from the insurance company. That way you get to keep the $20,000 earning what ever the S&P 500 is going to earn that you never ever liquidate the $20,000 nor eliminate the potential compounding interest from the growth of the $20,000.
If you are thinking you can benefit from all of this.
Just imagine anybody that has any assets, a job, pays taxes, or is subject to mortality needs to have their assets protected. The family bank includes a will and the family trust. Anybody that has any beneficiaries, dependence, is married, has children, has grandchildren, or does not want to have the court's decide their medical fate in case of incontinence, incapacity, or hospitalization, needs to have the family trust.
Placing your personal and business finances in the Vault.
If you are a business owner you need to have the correct structure to protect yourself from lawsuits, creditors, and to eliminate unnecessary taxes to the government.
Once you have taken the proper steps and appreciate those steps, there's tremendous peace of mind, security, of knowing that your retirement nest egg is safe and free from market volatility, that if anything happens to you, your business and your family. Your beneficiaries your loved ones are taken care of.
One of the biggest advantages and feelings that one would have is a tremendous self sustaining worth that their financial independence or at least a promulgated revenue stream is inside their fixed equity indexed life insurance policy.
Enjoy peace of mind, security, and what is important to note is that peace of mind safety, security etc. has no price tag even though were talking about money.
It is absolutely priceless to know that your financial security and your family's financial security is guaranteed and intact for the rest of your life?
Let's get started today. Give us a call or contact us and receive your free no obligation personalized financial review on DVD. We look forward to working with you and assisting you in a prosperous future.
