James Cunningham
RFC, CEP, MCEP
Creator of the Family Bank
Looking for investment opportunities that allows you to profit like a commercial bank does?
Start your own bank but with none of the regulatory red tape and expense that a commercial bank has to comply with and pay for.
The Family Bank - Investment Opportunities You won't find Elsewhere
The latest published statistics from the federal government tell us that the average American family is paying about 35% of its annual gross income to banks and finance companies in interest expense.
That same average American family is also in a 28% tax bracket.
That being the case, the average American family is working either for the banks and credit card companies or the federal government 241 days out of a 365 day year. When you add state income taxes and local sales taxes to the equation that number approaches 280 days!
If these numbers have any relevance to you, wouldn’t you like to work for yourself a lot more days of the year and work for the banks, the credit card companies and the federal, state and local governments a lot less days of the year?
Another way to ask the same question is to ask if you wouldn’t like to keep more of the money you work hard for and have it work for you and your family rather than pay it out to a bunch of strangers and let them use it or give it away?
Well, guess what?
You can, and it’s not that hard or difficult to do.
Without question if you could somehow maximize your tax deductions, and learn to stifle all or most of those interest expenses you currently pay out, things would be different…probably radically different.
That is to say, 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.
This is the core concept and investment opportunities we have been teaching and implementing here at CFG Consulting LLC for years for literally thousands of clients.
In implementing this concept we are not suggesting that you reinvent the wheel. We are not suggesting that you take your money off shore, engage in something that is untested or unproven; or otherwise do anything that thousands of Americans are not doing right now and benefiting from.
Using sections of the tax code that have been in effect since early in the last century you can accomplish this goal of working more days of the year for yourself and your family and paying less of your hard won dollars to strangers by simply setting up your own Family Bank.
A Family Bank?
It sounds expensive and complicated but the reality is that it’s not that hard to do and the cost is but a fraction of what you might imagine.
As a bonus, if it’s set up and administered right, along with your Family Bank, you’ll find that you’ll be able to reduce or altogether avoid estate taxes and create a bullet proof asset protection plan not just for you and your immediate family but, for future generations as well!
So, you ask, what’s the catch?
Answer: All it takes, at bottom, is a specially designed, value protected, interest crediting, equity index life insurance policy issued by one of the strongest lie insurance companies in America that is structured and custom tailored to fit your special needs, wants, desires and goals by us here at CFG Consulting LLC.
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.
As a consequence, although the death benefits paid out can still be significant, the commissions you have to pay to acquire this particular policy are significantly lower than you have come to expect.
Cash value based life insurance in not a new concept. Cash value based life insurance has been around helping people for more than 100 years.
This type of insurance policy, if structured correctly to take advantage of existing long standing laws to incorporate your specific goals, can work for you just as hard and benefit you just as much as it can be of help to your heirs and beneficiaries following your death.
Using this particular type of policy allows you to rapidly acquire the capital needed to own and operate a fully functioning Family Bank with all the investment opportunities for profit and options open to it that a commercial bank has but with none of the regulatory red tape and expense that a commercial bank has to comply with and pay for.
It is interesting to note that commercial banks themselves have long participated in the benefits offered by cash value life insurance. Wachovia Bank, a large, commercial, capital stock, multi state, national bank owns over $12 Billion in life insurance cash values.
General Electric Company, the most heavily capitalized company in the world, and Wal-Mart Stores, the largest retailer in the world, are two additional examples of big corporations who have learned how to skillfully use the internal financing system offered with cash value life insurance to accelerate their growth and profits.
And, take this to the bank: Just as easily as the concept of a Family Bank can work for a Fortune 500 company so it can work for you.
Here is the 30,000 foot overview of how it works: You establish your bank and regularly buy stock in it by paying monthly premiums for your cash value life insurance policy. You will be amazed how quickly the cash value grows.
After your bank, like any bank, has matured and got its feet on the ground, so to speak, you’re then in a position to borrow money from your accumulated cash values. Again, it will happen quicker than you think.
You can then use those borrowed funds to invest in high yielding hybrid investments, or you can buy a car, remodel your home, buy capital equipment for you business or professional practice, or invest in real estate, a private placement or anything that you might take out a line of credit for with a commercial bank.
You are the banker, so you make the rules.
And as the owner of your Family Bank, you pay back the money with interest just as you would if you were doing business with a commercial bank. Only this time, you can are the one benefiting from the so-called “spread” – the difference between what a bank pays you on your CD and what it charges you when it loans you money. The spread is the gravy and this time the gravy is yours.
More importantly, and quite unlike a bank, you can do all this 100% tax free because you are essentially borrowing from yourself.
Using a cash value – custom tailored - life insurance policy to establish your tax advantaged Family Bank your money will grown tax free and you will borrow the money tax free but, get this:
Even after you have borrowed money from your Family Bank the entire pool of money in the Family Bank will continue to grow and compound interest tax free just as if you had never borrowed any money from it in the first place because what you borrowed is a true loan – not a cash withdrawal.
Think of that. You just filled your glass to the brim, you took a heavy drink from the glass, and yet the glass is still just as full as when you first filled it.
Could it get better than that?
Once you understand the LAW of INTEREST, which says, “Those who understand it earn it, those who don’t pay it,” you will want to use this concept of a Family Bank for the rest of your life, and you will want to teach it to your posterity.
As a business consultant, one of the sad facts I recurringly see is the many people refuse to open their eyes and learn, understand and apply the simple financial strategies that can protect them, save them money and secure them and their posterity from the threat of financial hardship.
Believe me, the concept of the Family Bank is not just for the Big Guys. Most any small businessman or professional is in a position to keep the interest he is paying to commercial banks and begin using that interest as well as other funds to capitalize his own bank.
You may not have thought about it until now, but with a Family Bank you have the potential to self-finance everything you have been financing though commercial banks. Furthermore, once your Family Bank is up and running, you will have the potential to use that Bank to finance not only your own needs but the needs of others and, in doing so, to generate a major source of consistent outside revenue.
For a fact, isn’t this want a commercial bank does?
I hope you are starting to get a glimpse of the world of possibilities available to you if you simply open and operate your own Family Bank. Most of my clients, before I met them, had only one source of income. That one source was income realized from their business or professional practice. That sort of income is what is sometimes called “active income” meaning that each and every day, those who earn it have to actively go to work.
“Passive income” on the other hand is income earned from investments…you do not have to go to work to earn it.
I strongly suggest that it should be one of your most important goals to increase your stream of passive income. Being financially independent means you are making more money from passive income sources than from active income sources.
It is amazing to me that we live in country that thrives on credit but our educational system fails to teach our citizens the basic concepts that lay on both sides of the coin; i.e. the importance of credit vs. the overriding importance of capital. We live in a world that is driven by buying on credit but most of us fail to appreciate the fact that the credit we get is derived from someone else’s capital.
We here at CFG Consulting LLC specialize in showing professionals and small business owners how to accumulate a pool of capital. And once that pool of capital is accumulated we show our clients how to borrow against it in such a fashion that they rather than a commercial bank profit by the spread between what is paid for the capital and what is received on the loan.
We have all heard story told that if all the money in the world was distributed equally within ten years or so, 97% of all the money would end right back into the hands of the top 3% of the population who understand the rules of the game.
That, of course, will never happen but from my experience I believe there is a lot of truth in the idea.
In the world of finance and financial independence…banking rules. So, if you can’t lick ‘em, why not join ‘em?
Participate in the investment opportunities of a lifetime. Become a bank…more exactly set up and capitalize your own Family Bank.
We here at CFG Consulting LLC can help you win the money game. We can help you learn, understand and incorporate these ideas into your business and personal life. And if you do, what then? Well, if you do we can assure you that your life will dramatically change and you will shortly find yourself in a position to live the life of your dreams.
Remember the Golden Rule - He who has the gold makes the rules!
- Lyndon Forman
This quote by Lyndon Forman can, at least in one context, can be taken negatively to mean that that if you have the necessary capital you control other people and manipulate them.
However, in a positive sense, this quote can be taken to mean that if you have the necessary capital, you can truly control your own destiny and you can have a positive influence on the destiny of those you love and care for.
Just like a commercial bank, the concept of a Family Bank is a concept of perpetual pool of money that never runs out and that is used to promote the good of the community it serves. Just like a commercial bank, the strength of any Family Bank depends upon the size of its capital, the time it has been allowed to compound and the management’s understanding of the rules of the game.
I know a number of people who have 10, 20 or more Family Banks working for them. The question is, how many Family Banks do you want to have working for you?
The leverage power of insurance has been around literally hundreds of years. Again, it is something that should have been taught to us while we still we were still in grade school. To be sure, if we came to appreciate the concept of leverage using insurance at an early age the more positively it could have impacted on our future.
The good news is that it is never too late to open your own Family Bank. The limits of your Family Bank for good are defined only by the limits you chose to impose.
This strategy is far from a get-rich-quick scheme; it pays out great rewards only to those who are money smart and patient. However, the long term results are incredible.
If it makes sense, and we can help you make that decision, you can easily have multiple Family Banks set up. Even if you only have but one Family Bank, if it is successful, and there is no reason why it should not be successful, you can almost be assured that in the future it will spawn additional Family Banks.
In each case the spun off new Family Bank will be run by an heir or loved one named as the beneficiary of a cash value insurance policy taken out by a predecessor relative such as a father, mother, uncle, aunt or older brother or older sister who had a Family Bank.
Keep in mind that this concept is not primarily about insurance; rather this concept is about the power of an accumulated pool of capital and the inescapable fact that the best way to go about quickly creating that pool of capital in today’s regulatory and legal climate is with cash value life insurance.
This concept is about self empowerment achieved by changing the way you do your financing that is implemented by the proper use of a specially designed, custom tailored, value protected, interest crediting, tax advantaged, equity index life insurance policy. This is the best investment opportunities .
Simply stated, once you have your own Family Bank, you can continue earning compound interest when you borrow from your own bank to invest elsewhere, or to spend on whatever, you need as though you never borrowed it from you cash value at all. This is total empowerment we are teaching! This is leverage you can have!
There aren’t any other financial vehicles that allow this kind of investment opportunities, flexibility and control.
With this concept, you can use assets you may already have to capitalize your bank, you can start from scratch or you can use a combination of both existing assets and regular periodic contributions to acquire the necessary capital to get your bank off and running on a firm footing.
When I was in eighth grades, my science teacher, Mr. Bradshaw, taught me the concept of compound interest and how it works when taxes are figured in and how it works even better when there are no taxes to pay.
He showed me that if you took a dollar and doubled it 20 times Tax Free verses Taxed as Earned in a 27% tax bracket the difference in the bottom line is astounding.
Period 1 has $1.00 in each of the two columns. After doubling the dollar amount in each column for 20 periods we have $57,666.30 in the taxed as Earned column vs. $1,048,576 in the Tax Free Colum.
You too can take advantage of the astounding difference between the accumulated value of taxed vs. tax free money by setting up and capitalizing your own Family Bank.
When you are evaluating the choices available to you to put your money safety, historical return, control, flexibility and liquidity are, or should be, among your major concerns.
As compared to virtually any choice available to you today the safety, historical return, control, flexibility and liquidity available to you within a cash value life insurance policy crafted for you by CFG Consulting LLC are nonpareil.
If you have the discipline and vision to allow you Family Bank to maximize its power and work for you, you will be able to be safer financially and get out of debt more quickly than any other route you may chose.
Let me give you but one example:
Consider this:
- Let’s assume that a 33% tax bracket 35 year old Taxpayer in reasonably good health contributes $5,000 a year for 30 years to his 401(k), pension, profit sharing IRA or defined benefit plan and then he retires at age 65.
- That being the case he will have deferred $1,650 in taxes every year and, altogether, over 30 years he will have deferred $49,500 in taxes.
- Let’s further assume this same Taxpayer earns an average annual return of 10% on his contributions so that at the end of 30 years this Taxpayer has accumulated $706,633 in pre tax dollars
- Now, let’s assume this 33% tax bracket Taxpayer having reached the age of 65 wants to start taking distributions from his retirement plan at the rate of $68,000 every year.
- That being the case, starting at age 65, this Taxpayer will pay taxes each year of $22,440 and will have $45,560 to spend.
- And that being the case, in just 10 years this Taxpayer will have exhausted his retirement savings.
- During the 30 years this Taxpayer saved for his retirement he deferred $49,500 in taxes but, once he retired, it only took 2.2 years before this Taxpayer paid the tax savings back to Uncle Sam. Over the next 7.8 years this Taxpayer will pay Uncle Sam an additional $174,900 in taxes.
- Another way of saying the same thing is to say that in just 10 years following retirement this Taxpayer, who saved for 30 years for his retirement, would have paid back 3.5Xs the taxes he “saved” during his contribution years; he would have totally exhausted his retirement nest egg, he would have run out of money and be forced to live on his Social Security payments for the rest of his remaining years; and he would have no life insurance in force.
- So two questions:
- Whose retirement has this Taxpayer really been saving up for…his or Uncle’s Sam’s?...and;
- What’s so great about the tax deferred government sponsored retirement programs?
- Assuming the Taxpayer died at age 85, here would be his financial picture at death:
- Money to live on each year since reaching age 65:
- $68,000 in tax free loans taken each year for 10 years + monthly Social Security payments
- For the last 10 years of his life the Taxpayer would only have monthly Social Security payments to live on
- Life Insurance accumulated cash value at age 85: $0
- Life insurance surrender value: $0
- Life insurance in force:$0
- Taxes saved: $0.
- On the other hand if this same Taxpayer had taken his $5,000 annual dollars earmarked for contribution to his retirement plan, paid the taxes on this earmarked contribution each year, ($1,650) and put that contribution ($3,350) each year into a cash value equity indexed life insurance policy, and (let’s continue to assume the Taxpayer) earned a 10% annual return …here would be a snapshot of this same Taxpayer’s financial condition at age 65:
- Accumulated cash value: $452,575.
- Life Insurance in force: $567,954
- Taxes saved…$0…(i.e. he paid the taxes on his contributions ever year)
- Maximum amount of annual withdrawals as tax free loans that could be taken without paying down the principal: $68,000
- Assuming the Taxpayer died at age 85, here would be his financial picture at death:
- Money to live on each year since reaching age 65:
- $68,000 in tax free loans taken each year for 20 years +
- Monthly Social Security Payments
- Life Insurance accumulated cash value at age 85: $2,732,376
- Life insurance surrender value: $111,673
- Life insurance in force:$248,291
- Taxes saved: $297,000 (i.e. no taxes are required to be paid on loans).
(NOTE: The conclusions reached in this example are valid with any like scenario.)
Meanwhile, if this same Taxpayer had opted for a cash value equity indexed life insurance plan structured and put together for him by Cunningham Financial Group, rather than a government sponsored tax deferred retirement plan, he would not only have realized the results stated immediately above but:
- He could have put as much into his policy each year as he wanted to (so long as the contributions did not cause the policy did not become a modified endowment policy);
- If he was a professional or small business owner he would not have been under any obligation to make contributions for his employees;
- He could have retired at any age or not retired at all and, in all events, he would never have been concerned about minimum required distribution penalties or failure to comply with a law that changes (at least) every 5 years;
- He would never have been required to read and understand unintelligible reports from the plan trustee;
- He would never have been required to pay trustee fees, brokerage fees, securities commissions or the hidden charges customarily associated with any securities account;
- Assuming the Taxpayer did not borrow against the policy for the first 10 years, no matter what the market did he would never have lost any money on his contributions;
- His contributions would have grown at a rate that, historically, has exceed the performance of 95% of mutual funds
- All the money contributed together with all realized returns would be free from the claims of most creditors no matter what state he may have lived in;
- After a minimum of 10 years the cash value could have been accessed for any reason, tax free, even for reasons not related to retirement including payment of medical bills and payment of educational expenses of children, with no risk of a penalty; and,
- If structured correctly, the life insurance payment could be used to establish a legacy for the Taxpayer that would pay benefits to designated beneficiaries in perpetuity,
So what are you waiting for? Experience Investment Opportunities of a Lifetime.
Let's get your Family Bank Started today. Contact Us at CFG Consulting LLC today.
