IBC Memory Jogger: Nov 8th 2014
1. (Wikipedia) The first income tax was assessed in 1862 to raise funds for the American Civil War, with a rate
of 3%. Today the IRS collects over $2.4 trillion each tax year from around 234 million tax returns. (P 30) IRS
1913 as we know it today. Life Insurance has been around for over 200 years.
2. (P 85) You finance everything you buy. You either pay interest to someone else or you give up interest you
could have earned elsewhere. There are no exceptions. (COW) Debtor, Saver, Wealth Creator.
Debtor spends his future
Saver postpones gratification then drains his tank and loses opportunity to earn interest
Wealth Creator collateralizes his savings so compounding effect is not interrupted
(COW) If I could show you a way of making a purchase without emptying your savings account/wealth
storehouse, which would allow your private capital reserve to continue to employ the benefits of guaranteed
growth — minimizing the associated lost opportunity costs, when would you want to know that?
4. (Kiyosaki 4 things that make you poor) One fundamental problem is that in 1903 John D. Rockefeller took
over the financial education system by creating the General Education Board and since then the rich have
controlled what is taught in schools.
5. There are three Economic Schools of Thought, The Keyensian, the Chicago and the Austrian. Our
govt. has adopted and schools teach the Keyensian method which is based on debt. We can see where that has
landed us. It was Milton Freeman of the Chicago school that encouraged Nixon to take us off the gold standard
so we now have a fiat money system that was created and is controlled by the Federal Reserve Bank, which by
the way, is Not Federal, is not a Reserve of money for the American people and is not a Bank. It is a privately
owned and run banking cartel that answers to no-one except themselves and controls our government because
he who has the gold makes the rules. (Learn more in How Privatized Banking Really Works By L. Carlos Lara
and Robert P. Murphy, PhD. And G Edward Griffin The creature from Jekkyl Island ) It is only the Austrian
Economic School’s philosophy that provides the way out of this mess. And this is what we teach and practice
under the name of Infinite Banking or Privatized Banking Systems. It is also spoken about in terms of the 770
account or 7702 account, which is just the tax code for it, just like 401 k or 403 b is the tax code for certain
retirement plans.
6. (HPBRW) What if there was a solution to government intervention and our current money madness?
Would you hesitate one minute in wanting to know what it is? Of course not! No one would. The problem is so
pervasive that a solution seems impossible and yet, there is a solution. This solution’s only requirement is the
action of a single person acting in a manner to help only himself, but in so acting ultimately he helps all of
society. Integrating Austrian Economics with the Infinite Banking Concept is our solution.
7. When people ask me, what do I do, I tell them I can show you how to create wealth withOUT investing
and withOUT risk.
8. I am a non-traditional Life Insurance Agent and Privatized Banking Strategist.
9. Every financial transaction involves banking; you cannot take banking out of the equation.
10. Someone is going to control the banking function in your life so it might as well be you.
11. You can either own your own bank or you will be the customer of someone else’s bank.
12. (Nelson – Minnich radio) When you get the banks out of your life, it becomes such a stress free and
peaceful way of life.
13. There are many things that are thought to be true about money that turn out not to be as true as they
should be. We reveal many of these misconceptions/misinterpretations/misunderstandings to our clients.
14. We teach how money really works and how to create a family banking system utilizing certainty rather than risk.
15. (P 85) Looking at the facts, where would you prefer to have your wealth reside?
1. Real Estate? Take a look around and see what happens when one needs liquidity. Real Estate is very
much a frozen asset.
2. The Stock Market? Until you have read the books listed on page 91 in BYOB you are not really
qualified to make an intelligent decision about such an action. When you buy into the stock market, you
are buying an opinion, and that is all.
3. Or, Free contract with other free persons. From this base of financial operation you can do any of the
other things in life that you desire. (Specially designed Life Insurance, used as a living benefit. A pool of
financing capital)?
We say this, if you like risk, assumptions and opinions then at least house your money or move your money
through a storehouse, you control, and that you can access at your own will that provides guaranteed growth,
even while you are utilizing those same dollars in real estate or stock market or where ever. At least if a great
deal comes along you have easy access to cash and if the deal goes bad, you have a back-up plan so you haven’t
lost everything.
16. (P 85) There are only two sources of income – people at work and money at work. Could it be that the
modern family, that needs two incomes to make ends meet, has NO money at work?
17. (P 65) Everyone is already spending all financial resources, on what he thinks is best. There has got to
be some honest introspection at this point and a commitment to ‘get out of financial prison’. There must be a
burning passion. This is going to require a change in priorities in life and recognizing that controlling the
banking function personally is the most important thing that can be done in your financial world.
18. Pay close attention to this point – it is vital that you understand that he must set up a loan repayment plan
that equals or exceeds what he would have had to pay the finance company that he was using in the past.
19. (YL) Don’t expect the majority to do what the minority already has.
20. (P 31) Those who have the Gold make the rules.
21. (P28) A luxury once enjoyed becomes a necessity.
22. (P 28) Expenses rise to equal income.
23. (P 29) Who is the biggest thief in the world? (Willie Sutton Bank Thief) – IRS Story (Legal Plunder) – Go
to mall hold gun to your head and ask you to give me. Called Theft. Go to mall early, tell crowd I am going to
divide up the contents of wallet between them all; now they will call the act democracy.
24. (P 23) Why do they call stocks securities when it is possible to lose their entire value?
25. (P 11) Banking is THE MOST important business in the world! Without it, all business comes to a
screeching halt, yet most folks know next to nothing about the process of banking and its importance to their
lives and their well- being. Someone or some organization has control of a pool of money that can (and must)
flow, at a cost, to meet some need.
26. Benefits: (Jim Kindred)
(COW) Permanent Life Insurance (PLI) when designed and utilized properly, can provide stable growth, cash
value collateralization, guaranteed loan access, no annual tax on growth and death benefits. Additional benefits
are available with additional policy riders.
27. (P 55) You, as policy owner have first dibs (outranks all other possible borrowers) on that money (that
must be lent to someone for the plan to work) also without having to prove you do not need that money.
Structured and unstructured loan repayments. If you miss a payment there is no default, no penalties, no
hurting of your credit score, no foreclosure etc., While you have protection from loss of job, illness, missing or
late payments over an extended period of time. You are in control of when you pay it back.
28. Average vs Actual Returns – Math is math. Money is money. Math is not money.
29. CLOSING LINES:
“Just one more thing”
“Level with me”
"You can put a price on anything, except a good night's sleep"
"Could this be a benefit to your family?"
“How much would you be willing to spend to make sure your family is taken care of?”
30. (COW) The Private Reserve Strategy is designed to help develop or improve one's financial position by
helping them avoid or minimize unnecessary wealth transfers where possible, and accumulate an increasing
pool of capital that provides accessibility, control and uninterrupted compounding.
A fundamental key to the Private Reserve account is that the money in the account must be accessible through
collateralization.
31. (Todd Langford) Eliminate the word ‘Government’ from our vocabulary and change it to be Tax
Payers. Do you think if every time we had to say the word govt. we changed it and said taxpayer people in this
country might catch on to where that money is coming from? Maybe we would all stand up and change things.
Our founding fathers couldn’t decide whether to charge a 1 or 2% tax. What have we allowed to happen since
then? Why, because the word Government is some body that doesn’t mean anything. Say taxpayer and all of a
sudden that might have some real meaning.
The Central Bank tried to get started in United States but they couldn’t get through congress until they changed
the name to be Federal Reserve. Was there any difference? It was the same thing, they just changed the name
and all of a sudden Congress said hey, that works, it’s got the word federal in it.
31. (Todd Langford) SEC largest governing body in our industry - Securities and Exchange Commission.
The SEC dictates what it is we are allowed to say. They correct the wording of the things we use, and yet they
call what they sell a security. How is that possible? What can they guarantee? Zero is what most people think in
their mind. Understand this, they cannot guarantee that high! They cannot guarantee even zero. They can only
guarantee a loss of 100%.
32. (Todd Langford) Some will say you are not showing the guaranteed numbers. Well I will. Let’s go
guarantees to guarantees. I’ll put my guarantees up against any bodies any day of the week. Because nobody has
any. And yet that’s what many people expect and want us to use when doing a comparison. They want us to use
the guaranteed numbers of Life Insurance while they use the fantasy about what the market might do
somewhere in the future for comparison. It doesn’t make much sense.
33. (Todd Langford, TT'13) Let’s eliminate the word insurance company when talking about mutual
insurance companies. Who are the owners? The policy holders. Would people think about their life insurance
company differently if they could internalize the idea that they are an owner of that company? If we can get
clients to take ownership in that company, it makes a big difference.
If I own stock in coca cola, I receive a dividend, because I’m an owner in coca cola in some fractional
percentage, correct? People can understand that when I look at the papers and see coke made big profits, if I
own coca cola stock that's what I want to see, why?, because that is going to mean more dividends to me.
Is there any difference in that and the way my mutual life insurance company works?. They think of them like
car insurance etc. so they want to get to them. They don’t want the evil insurance companies making money.
But if that’s my company, I want it to make decisions that are profitable. When they see it in that light it starts
to make sense about the way it works.
34. (Todd Langford) Do we borrow our cash values? No. Why do we get questions from our clients asking
why do I have to borrow my own money? Because that is what they are being told. You borrow from the
insurance company. You put up your cash value as collateral or borrow against your cash value from the
insurance company. When our clients say they are borrowing their cash value it is a problem. We need to
correct our clients and ourselves.
35. Life Insurance is, when designed properly, is to be used as a liquid asset, you control and utilize during
your entire life.
36. Famous People who utilized their life insurance policies by borrowing against their Cash Value a/ Walt Disney, Theme Park, Disneyland.
b/ Doris Christopher In 2002, she sold the Pampered Chef to Warren Buffett.
c/ J.C. Penney used a loan against his $3 million life insurance policy to resuscitate his retail stores after the
1929 crash.
d/ Wiffle-Ball Creator, David N Mullany in 1953, helps tide him over
e/ Leland Stanford Jr. University in Palo Alto in 1891 - 1897, Jane L. Stanford used her husband’s life insurance policy proceeds to help fund operations and pay faculty, allowing Stanford University to weather a dangerous six-year period of financial distress.
f/ Dick and Mac McDonalds - Ray Kroc did not take a salary during his first 8 years, and to overcome constant cash-flow problems, Kroc borrowed money from two cash value life insurance policies (and also his bank)
to help cover the salaries of key employees. He also used some of the money to create an advertising campaign
around emerging mascot Ronald McDonald.
g/ In 1939, a young couple named Max and Verda Foster started Foster Farms by borrowing $1,000 against a
life insurance policy.
38. (Kim Butler - Live Your Life Insurance)) How one dollar can do lots of jobs. When you buy whole life
insurance you get a lot of things that go with it. You get the death benefit, you can get waiver of premium, you
get the cash value, you get the dividend, you get the ability to borrow etc. so that's what I mean by lots of jobs.
One dollar inside life insurance does all those jobs.
With whole life insurance you can borrow against the cash value and get the dollars to do additional jobs as
well. Maybe it is educating children, maybe it is helping you out with a real estate opportunity, maybe it is
taking care of premiums for you for a while, maybe it is helping you get into another investment. These are all
jobs that our dollars can do.
So much of our society is predicated on one dollar doing one job. I'm going to put my dollar here and it is going
to educate my kid. I'm going to put my dollar here for retirement. I'm going to put my dollar here for my life
insurance, and I'm going to put my dollar over here for my mortgage.
It's really not how our economy works. Our personal economies work because all our dollars are interconnected.
Many clients say I treat my insurance dollars different than I treat my investment dollars. They might try to
separate them but our dollars are all interconnected. If we limit our dollars ability to do only one job like putting
it in a retirement plan; not that that's bad, but we just have to understand that's the only job that dollar is going
to do. If we put it in a 529 plan, that's the only thing that dollar is going to do, is educate a child. Nothing wrong
with that but we expand our potential so much better if we get one dollar to do lots of jobs. Or an HSA plan, it
is doing one job, supporting certain health issues.
So by using life insurance a dollar immediately does 4 or 5 jobs, again, death benefit, waiver of premium, cash
value, dividends, ability to borrow against it. And if we do borrow against it then additionally can educate
children, supplement retirement etc. as well.
39. (Kim Butler - Live Your Life Insurance) The first beneficiary of the life insurance should be the insured.
Take a single guy, never going to have children, the life insurance death benefit can play a role in helping
him spend his other assets more effectively. The guy 70 or 80 years old and has lots of different assets and it
boils down to a cd and life insurance benefit.
He may have some charitable desires and that is an obvious use of the death benefit but we are human beings,
we are selfish and so we want to use that death benefit for ourselves. So this gentlemen could take that CD and
do what is called a pay down or a spend down of that asset.
Now the typical retiree is going to take interest-only off that asset. But this gentleman could do a pay down or a
reduction of that asset, that CD, down to zero, on purpose, because that life insurance is there. So that is an
example of using or spending your death benefit, while you are living.
Now a pay-down is going to lessen his tax, it's going to increase his income, and there is even a numerical
example of how much more a person in that situation can get while they are living because of the presence of
that death benefit. It's almost like the death benefit becomes a permission slip, if you will; or the key to unlock
the future in that, since death is a guaranteed event, the key to unlock other assets.
Another example is something called a life settlement. This is a little more commonplace these days but what it
means is selling the death benefit. So they can sell it to a third party and receiving a lump sum or an income
stream depending on how the deal is structured. So there are two examples of a single person using their death
benefit, while they are living, unconnected to any charity or any other family member purely for selfish reasons
to increase income and reduce taxes.