The four pillars of every successful personal economy

By Jeffrey Reeves MA


Every successful personal economy rests on a foundation of money that your client controls:
  • If your client's money is in a tax-qualified retirement account, not only do they not control it, that money is in double-jeopardy. As we have seen recently, the market can decimate that account and, as your client will discover in the future, the IRS can capriciously increase its share of what earnings are left.

  • If your client's money is in mutual funds, the fund managers are in control; your clients are at their mercy.

  • If you allow money managers to decide your client's financial future... Well, just think of Bernard Madoff.

  • Insurance companies gain control of your client's money if you put their money into annuities.
However, when you put your client's money in cash-value life insurance under terms of a century-old contract, your client is in control.

The success of your client's personal economy demands that they control the money that flows through their lives by employing a proven system that assures control. That means your client's money must be in a cash-accumulating vehicle -- I prefer cash-value life insurance and call it a personal "bank" for simplicity's sake -- that minimizes risk, allows control and supports the four pillars of every successful personal economy:
  • First pillar: Freedom from debt. Your clients capture the interest and principal they would otherwise pay to others in their own "banks." They stop living as the indentured servant to lenders, credit card companies, tax collectors and behemoths whose only goal is to consume your clients' money and enhance the behemoths' own wealth.

  • Second pillar: Secure income. Your clients may still work after their planned retirement, but it will be because they want to; not because their portfolio crashed, they ran out of money due to the risks inherent to investing, the IRS visited once too often, or they were simply unprepared.

  • Third pillar: Plenty of accessible cash. Whether your client faces a disability, employment concerns, a family crisis, uninsured medical or long term care costs, or any other financial challenge or life-enhancing opportunity, your client needs money in their "bank" to handle it.

  • Fourth pillar: A legacy of wisdom and wealth. Your clients can "pay forward" the gifts of their money and their financial wisdom as a tax-free inheritance to future generations so their heirs, too, experience financial independence and freedom.
Here are 12 more good reasons for teaching your clients how to use cash-value life insurance to gain control of the money that flows through their lives by creating their own banks:
  • They can access the money in their banks whenever they want or need it -- no penalties, no waiting and no taxes.

  • The government, employers, or any other outsiders have nothing to say about how they operate their banks.

  • Their banks are protected from creditors and lawsuits.

  • They can borrow against their banks for any reason and they do not have to qualify in any way.

  • When they borrow against their banks, their money keeps growing as if they had not borrowed a cent.

  • Their banks allow them to restore the money they pay to purchase cars, household furnishings, vacations and other big-ticket items, or to fund education, business start-ups or any other costly expense by depositing both principal and interest right back into their banks.

  • Their banks allow them to put all of the interest they would normally pay to credit card companies, banks and other credit grantors into their banks, where it compounds for their benefit.

  • Their banks allow them to prepay the cost of future health and long term care so the money they need as they age is in their banks when they need it most.

  • Their banks can fund an inflation-protected income they do not have to work for and they cannot outlive.

  • They can use the money in their banks when an unforeseen life event throws them off track (and that happens to everyone at some time or another).

  • Their banks let them grow their wealth income tax free every year... no sliding backward, no worries about stock market crashes or real estate market bubbles -- just peace of mind about their money.

  • Their banks serve them without compromise while they are alive and allow them to pay forward -- tax-free and to anyone they choose -- their legacy of wealth and wisdom.
Over the last half century, America misplaced some of its greatest treasures. These are not physical items or artifacts. They are the economic principles, practices and tools that built the most enviable economy in history. Media-driven drivel that seduces Americans into serving the best interest of others have replaced these rock-solid fundamentals. Remember, only you, America's independent insurance and financial advisors, can free Americans from the tyranny of a failed financial model and unearth the treasures that have been lost over the past 30 years.

*For further information, or to contact this author, please leave a comment and your e-mail address in the forum below.