"Function Like a Bank, Profit Like a Bank" is a powerful guide that shows readers how to take control of their finances by creating a Family Banking System.
This book challenges that status quo, teaching readers how to reverse the flow of money by leveraging High Cash Value Life Insurance to build a self-sustaining, tax-advantaged Family Banking System. By applying the principles of banking used by financial institutions, readers can eliminate debt, fund major purchases, and grow wealth — all while keeping the profits within their own family.
We don't think about this, but everyone has something that functions as a banking system in their life, yet few people profit from it. Instead, outside entities like banks, credit card companies, and other financial institutions reap the rewards. We give away about a third of our income to other entities in the form of interest.
When you buy a house, 70- 80% of the payments in the first 7 years go directly to the bank in the form of interest. In the end, your house will cost you 180-200% of what the original price was due to the interest you pay the bank.
When you pay cash, you may not have an interest payment, but you still have an interest cost because you give up the interest you can earn on that money.
Of course, you have to spend money to live, but you don't have to give up the growth of your money. Your Family Banking System allows you to keep your money growing and working for you every day of your life, even when you're using it elsewhere.
The author highlights the three biggest expenses that silently drain wealth from most individuals and families:
- Taxes
- Opportunity cost
- The interest paid to others
By understanding and addressing these expenses, you can reclaim control of your money, redirect the profits back into your life, and build lasting generational wealth.
This book provides a step-by-step guide to:
- Create a Family Banking System using High Cash Value Life Insurance
- Generate tax-free passive cash-flow
- Eliminate debt while financing life's most significant expenses through your own system
- Recover Lost Opportunities
He concludes the book by:
- Showing how your 401(k) steals your wealth and prevents you from growing wealth
- Why the Average Rate of Return of Your Portfolio isn't what your focus should be on
- Other financial lies you're told, so you keep giving your money away to others.