Sunday, March 29, 2020

Infinite Banking for your Kids

How would you like to help prepare and secure your child’s financial future for all stages of their life including college and all the milestone that follow? 

Not ever having to worry about whether your child will be beholden to banks for massive student loans, crippling credit card debt, or any other type of bank debt?

Instead you could give your child the ultimate financial gift. 

Put them in driver’s seat so they can re-write the financial rules to escape the bank-controlled money system that plagues families from one generation to the next.

It’s the so-called “Rat Race” for a reason. 

But it doesn’t have to be your child’s financial destiny. 

The truth is our kids are destined to follow the same financial path we do. 

If you borrow money from a bank from one car purchase to the next, finance your home from mortgage to the next, contribute to a 401k plan praying the stock market can consistently perform so you can finally retire (March 2020 has seen the market crash 25% because of the Covid19 crisis!), I’m going to tell you something that deep down you probably already know. 

You’re saving money in the wrong place! 

Worse yet, your kids will adopt the same or similar money habits from you when they become adults.
Undoubtably, you're a proud parent who wants the best for your kids.  Why pass on a lifetime of financial insecurity?

The challenge Middle Class America has is not knowing what we can do differently for our kids instead of the traditional options… like bank savings accounts and 529 Accounts.  These savings options are mediocre at best.

The big question is: how can you give your child the best head start in life so they can avoid repeating the same financial blunders you've made?  Yes, you!  We all have to own our mistakes in life so let's keep it real.

What I’m going to share with you will help you give your child access to a tax-free reservoir of wealth they can use over and over and over again…at any point in life! 

Not only can it help pay for college but for ALL THE MILESTONES in their life. 

From buying their first car, their first home, start or buy a business, the opportunities they'll be able to take advantage of is unlimited.  That's the power of IBC.  It puts those who implement the strategy in the position to be "Master & Commander" (great movie by the way) of their financial ship!

And IBC will even be there to providing TAX-FREE income in retirement, too.

It’s been called “the Swiss Army Knife of Financial Planning” because of all its uses. 

I’ve even heard the Infinite Banking Concept® referred to as “the black box secret for the ultra-wealthy” because affluent families use it TO HAVE ACCESS to cash reserves WHENEVER NEEDED and FOR ANY PURPOSE.  Plus money kept in these accounts allow families to transfer wealth from one generation to the next.

It's the ultimate wealth building secret

And for kids, the power of time and uninterrupted compounding growth is the perfect recipe to help them navigate their entire financial life. 

I call it the “Junior Estate Builder” and this plan is so simple you’ll be surprised to learn it’s worked for over 150+ years secured by the safest financial industry in the world.

It’s where I put my kid’s savings because I know it will be there for every big event in their life and I invite you to do the same for your children.

In the next few minutes I’m going to share how you can give your child the best financial tool to navigate their life. 
This simple, proven financial strategy is so flexible it can be used for any purpose no questions asked. 

Imagine your child having a place to grow wealth without ever experiencing market losses and economic downturns, political uncertainty and social upheaval, or any global event that cut an asset in half without warning.  

With the Junior Estate Builder, every year is a good year

I know it sounds too good to be true but it does exist and it's even written into the IRS tax code.  It just happens to have the worse name ever which is why I choose to call it the "Junior Estate Builder".

With this strategy, your child will no longer be beholden to banks for loans.  No more worrying about getting dinged on their FICO scores, and having to verify income or employment will be a thing of the past.

I can tell you it’s such a peaceful existence to never having to deal with bank loans, high interest rates, and onerous fees. 

Then consider what your child will do for retirement.  401k plans were never meant to be the primary source for income in retirement.  They are fundamentally flawed plans.  Think about it.

Money in a 401k plan is tied up for decades.  Early access is penalized and taxed.  

The only option for growth comes with risky and complicated market-based options with many hidden fees.  In truth, these plans serve Wall Street and the government better than they will for your child. 

Wall Street locks in the revenue for decades with no performance guarantees in return, then the IRS takes a sizeable portion in taxes every year for life. 

Is this really a good plan?  Is it really the best you can do?

It only seems that way if it's all you know!

Well, most parents only know about 529 Accounts too, and like 401k plans, these are severely flawed as well.  

529 Accounts put money at risk like 401k plans, can be used for only college expenses, and once spent will never provide any additional value or benefit to your child... EVER!  

In short, 529 Accounts are a risky, single purpose strategy with no additional value past college. 

The greatest benefit to the Junior Estate Builder is how it can be used to help pay for college, but more importantly, it can be used as a private banking system to accumulate long-term wealth during your child's life.

Imagine a multi-use strategy where your kids can re-use the money over and over again to acquire assets like real estate, or start a business, or perhaps buy an existing business so they can be their own boss.

They can also use the money you save for them to finance all the cars they'll ever own, maybe even put their own kids (your grandkids!) thru college...

Ultimately, it will even provide tax-free income in retirement.

Remember when I mentioned that the Junior Estate Builder is the “Swiss Army Knife” of financial planning?  This is a versatile, flexible, and predictable money system unlike the traditional bank and Wall Street system that holds you captive with your own money.

The sad truth is that traditional financial planning amounts to life-long financial servitude to banks and Wall Street because those institutions control your largest assets.  Congress writes the laws and changes the rules all the time.

Does it make sense to be penalized for early access and eventually get taxed on every dollar withdrawn in 401k/IRA accounts?  These plans are designed more for our government's benefit (great source of annual revenue) and the average American accepts it blindly because “it’s what everybody does!”

And this bank/Wall Street monopolized money system keeps you from discovering the truth about this strategy which hides in plain sight waiting for you to discover it.

It's the secret traditional banks and Wall Street hope you never learn about.

And keeping you in the dark is the best way to ensure your child will learn the same money habits you have now which keep you and your kids tied to banks and Wall Street in perpuity.

This is the financial destiny your child will inherit from you but the strategy sessions I offer will help you and your child change the course of your financial future by getting your child started on a path that puts them in the financial driver’s seat during their lifetime.

As a parent I know you have the best intentions  

I have no doubt your intentions for your child are no different than my parents had for me.
They did what they thought was best for me as a child and most families still do something similar.

For me, it was one those passport savings account books that are now a relic of the past, especially with interest rates at 0% these days! 

Back when I was growing up interest rates were much higher than they are now, so it was pretty cool to see the money my savings account grow at 6-8% each year during the 80’s. 

My parents were dutiful savers and thankfully that discipline certainly rubbed off on me.

Problem is despite my parents work ethic and discipline to save as much as they could for me, they chose accounts that conditioned me at an early age to think of banks as trusted institutions.

The de facto place to always save money.  How was I to ever learn otherwise?  I have a feeling you can relate.

Unfortunately, I had no Rich Dad or wealthy uncle to help me learn about money.
For this reason I went to work in the financial services industry after college.  Fast forward 21 years and I’ve tried just about every financial vehicle that exists. 

And of the places I’ve put money, there has only been one strategy and asset class that has worked like clockwork each year.  

This strategy has given me access to money tax-free to deal with financial curve balls as well as financial opportunities (the ability to purchase multiple homes, rental properties, an apartment complex, precious metals, you name it), and do so without ever interrupting the foundational portion of my net worth.  

I stopped contributing after-tax money to mutual funds that left me susceptible to tax consequences each year, including years when I lost money in the market. 

No more maxing out my 401k’s/IRA’s where I was putting my money in financial prison for 3 to 4 decades. 

I even stopped directing money to my kids 529 Accounts.

The more I realized how beneficial this strategy was for me, the more I thought how I should be setting up my kids with the same strategy for when they come of age.

The traditional advice of using 529 Accounts just didn’t make much sense compared to the alternative I had discovered for myself back in 2007.

What really drove home the point for me was my experience as an advisor and seeing 529 College Savings Accounts take massive hits when the market corrected from 2007 to 2009.

It wasn’t just 401k retirement plans that suffered during the last big recession, kids with their 529 accounts, especially those about to go off to college suffered as well.  We are witnessing it now again with the Covid-19 pandemic.

My experience as an advisor also helped me learn the other downside to 529 Accounts which is that not every child goes on to college. 

Money in 529 accounts are taxed and penalized on the earnings if not used for educational purposes.  No such rules or restrictions on a Junior Estate Builder plan.

This was the icing on the cake for me.  No 529 Accounts.  Instead I would set my kids up what I now call the Junior Estate Builder.

I’d give my kids the freedom of choice and direction in life without ever being hamstrung by banks, Wall Street, or even Congress. 

The truth about money is this:

The only fix is taking matters into your hands  

You cannot continue to rely on banks, Wall Street and Congress created plans to create the future you desire.

You have to OWN AND CONTROL your future and you have to teach your kids how to OWN AND CONTROL their future as well.

The Junior Estate Builder gives you the ownership and control with your own “privatized banking system” and it's actually quite simple.

Through the use private dividend-paying Whole Life contracts structured for maximum cash values, I create and OWN the pool of money I use to finance my cars, homes, make investments, pay my taxes… and yes, even to supplement my future income in retirement TAX-FREE.   

All of it is accomplished without ever needing to finance (borrow money from a bank having to agree to their terms), relying on Wall Street roller coaster, or lock up money in lobster traps (401k/IRAs) Congress creates to capture tax revenue each year when I retire until the day I day.

Everything it does for me, it will also do for my kids who each have their own contracts.

Quite simply, the Junior Estate Builder will do for my kids more than any 529 Account could ever do AND do better than any 401k plan could do.

The freedom of this strategy is going to teach them how to be financially independent from banks and Wall Street so they can live the life they aspire to without the financial obstacles that handcuff Middle Class America.

Most importantly, with the power of compounding interest and youth, my kids and yours will have the benefit of time to make even small amounts today go an extraordinaryly long way tomorrow!

Each of my 3 kids have their own Junior Estate Builder.  It’s where I direct their savings and each year their accounts grow larger and larger, just like the adult versions I have for myself and my wife where between the two of us, we have 8 properly designed IBC® Whole Life contracts and counting.  Including my kids contracts, our family has 11 Infinite Banking designed Whole Life policies we direct money to each year.

Think of that for a moment.

Instead letting banks and Wall Street controlling our wealth, my family has total control of a growing pool of money every single year that we can use for any purpose.  

Two simple reasons why this works so well:

1. These are private placed contracts backed by mutually owned (shares are not traded publicly) life insurance institutions that have paid dividends for 150+ years consecutively, even thru the Great Depression. 

2.  These plans are an uncorrelated asset class meaning it has no connection whatsoever to the stock market so will never suffer a market drop.

In fact, unlike Wall Street,  these financial institutions put their own skin in the game by guaranteeing a minimum amount of growth each year no matter what happens in the economy. 

I have the ultimate peace of mind knowing the money I put away from my kids will always be there for them.

I especially love that my kids' financial plan is now all-inclusive for any direction they choose to go as adults. 

Imagine the financial freedom you could be giving your kids where they have the resources to own cars, buy a house, start or invest in a business without the need to ask a bank for financial assistance. 

Attending college is an important milestone but as a parent I really believe we need to look beyond transitioning our kids from high school to college. 

Let’s face it, these days it gets harder and harder to get ahead. 

One thing that often goes overlooked is that the better prepared our kids are to transition to adulthood, the less likely we will have to support them financially in their 20’s, even their 30’s.

You’ve probably heard college graduates are returning to live their parents more than ever these days.
Marriage, having kids, and buying their first homes are being delayed later and later these days.

The number one reason is because they don’t have the financial resources to step out on their own.   

And the results have been proven to work over and over and over again.

So you may be wondering, if this is so great, why haven’t I heard of the Junior Estate Builder?

Now in the financial services business you probably realize Wall Street and Banks will do anything to manage your money. 

They’ve monopolized  401k plans and 529 Accounts to the point all financial recommendations narrowly focus only on stock market-based portfolios. 

For Middle Class America, these are the choices talked about.

That’s the biggest reason why the Junior Estate Builder is the best financial secret hiding in plain sight.

It’s not a Bank and Wall Street created product or service.  Quite simply, they can’t, don’t, or won’t recommend it because it directs money outside of their control!  Remember, it's a very specific type of dividend-paying Whole Life policy.  Furthermore, it has to be structured just right to avoid becoming taxable later in life.

By now you should know when money is locked into 401k/IRA plans, that money becomes tied up for life! 

When the need for money arises, where must a family turn if they are prohibited from accessing their own the largest asset they own?

Middle Class America is forced to borrow money from banks, of course!  They refinance their home if possible or rack up sizeable credit card debt that will take years to pay off.

It’s a system designed with purpose to keep you on that Bank/Wall Street treadmill.

And unless you do something different for your kids, this treadmill is all your kids will likely ever know!

But it doesn’t have to be.

You now have a choice to take action.

You can take the next steps to help your kids avoid the same financial pitfalls.

I’ve made getting started so simple and easy for my clients, that way your kids don’t have to be another financial statistic who don’t have a rainy day fund or have enough to retire on when they are adults. 

The best part? 

You will know down to the dollar and year, how your child’s plan will perform, you will finally have the missing piece that moves your child’s financial life forward from one milestone to the next because they will have access to money tax-free when and where they need it. 

To setup the Junior Estate Builder system correctly, you must be able to do 3 things:

1.  You have to be able to think long-term.  This is not a get rich quick scheme.
Remember, saving for college is one milestone but your child will have many more milestones ahead of them.  Give them the resources to prosper at every stage of their life.

2.  You have to have the financial discipline to save money consistently.  $100 a month is the minimum.  If your budget allows for more, you can add more.

3.  Put the plan on auto-pilot.  It won’t require any luck, skill, or guesswork on your part to be successful because the contract is has guarantees, flexibility, and access to cash whenever it's needed.

If you can do these 3 simple things, you will ensure your child the ability to take advantage of any opportunity life presents them. can continue doing what you’re currently doing for your kids hoping the plan works and in the case of 529 Accounts, hope it’s utilized for college. 

I have no doubt your kids will be grateful for any amount put away for their future. 

I know I was grateful for what my parents saved for me, but if you’re the type of parent that really wants to give your kids an edge financially, you owe it to your child to see how this plan can work for them.

Here is the next step to take:

Visit my calendar and request a strategy session here:

Thank you,

John Montoya