Be the Bank by starting a Family Bank


Be the Bank by starting a Family Bank

A successful executive reached out to me recently for some guidance about his financial plan. By most measures he earned a VERY healthy income, had a generous health plan, a well-funded 401(k) and a burgeoning investment portfolio. But he wasn’t feeling all that wealthy because most of this money was tied up in risky assets for which he didn’t have much control.

Yes, his volatile assets seemed to be performing well when measured over the course of his lifetime. But, every time he was thinking of accessing his money for major purchases or investments, a market correction or other sudden drop in the value of his assets made it too hard to justify “cashing in some of his chips.”

By the way, this executive’s situation was not that unusual. In today’s extremely low interest rate environment, when so-called “safe dollars” are earning next to nothing, many people feel they have no other place to earn a decent return other than in risky assets.

Just know there are better options.

Wouldn’t it be nice to know you have some control over your financial outcome regardless of what the financial markets and economy are doing? As shown below in the Hierarchy of Wealth model, the more control you have over your assets and investments, the less risky your financial plan needs to be. This is where the concept of the Family Bank comes into play. It’s a proven strategy for maximizing control over your wealth.

By committing a sizeable portion of your wealth to a Wealth Maximization Account™ (WMA) your money grows moderately tax-free AND can be accessible any time for making investments. Since the WMA is essentially money you cannot lose, it is one of the best ways I know for successful people to boost their wealth and income substantially.

After I mentioned the Family Bank model to the executive I mentioned above, he immediately saw a better way to protect his wealth and allow it to grow income in assets that he (not outside forces) could control.

You don’t have to be an elite executive to utilize a Family Bank to take back control of your wealth while protecting your most precious assets. Take this free, confidential self-assessment test to see if a Family Bank is right for you.

Additionally, you can download a free guide, “The Family Bank: A Foundation for Taking Control of Your Financial Future” by clicking HERE.