Business_Presentation_CEO_version

© 2014 Private Family Banking. All Rights Reserved.

Finance Your BusinessAnd Grow Rich


Three Question to ConsiderThree Question to Consider1. Do you borrow money to finance your

business?➔ If so someone else is making profits off

your business that could be yours.


Three Question to ConsiderThree Question to Consider2. Do you have a retirement plan that you are putting money into?

➔ If so you are giving money to someone else that your business cannot use.


Three Question to ConsiderThree Question to Consider3. Do you have capital tied up in your

business?➔ If so are you paying yourself interest on

your capital?✔ How would you like to make the interest

paid back to you tax deductible?


Creating a Private Family BankCreating a Private Family Bank● We need a financial instrument which allows

us to accumulate a pool of money, which:● Is guaranteed to grow,● Guarantees us access to our money,● Ensures that the profits from the use of the

pool come back to us.


● We use the same financial instrument that banks use to park their money in a safe place and get guaranteed growth.

● BOLI or Bank Owned Life Insurance is held by most banks and recommended by the FDIC.

● Permanent life insurance is a safe, liquid way to hold and use capital.


● To create a Private Family Bank, we build a customized Life Insurance policy that gives you:

– Liquidity– Safety– Guaranteed growth– Protection from taxes– Protection from judgments (lawsuits)


How Does Private Family Banking Work?● Business owner capitalizes a Whole Life

policy, as the policy's owner.● Policy owner takes out a loan from the

Life Insurance Co. (using the policy as collateral).

● Policy owner then loans that money to his business.



Business repays principal and interest to the policy owner.

Business can write off the interest on its taxes. Policy owner receives the interest as unearned

income. Policy owner repays Life Insurance Co. and

deducts the interest paid because the loan was used for business purposes.



Benefits:– Business owner has easy access to financing

without loan applications– Pulls money from business as unearned

income– Cash value of life insurance policy continues to

grow tax-free as if no loan was taken– It's like using the money twice


You Can't Make a Higher Return!

Consider the following example -


Investment$1,000,000 120 8.76% $12,538 $1,504,567 $403,653 $1,403,653 40% 20%

Number of Monthly

PaymentsLoan Interest

RateMonthly

PaymentsTotal Re-Payment

Gain After

TaxesTotal After

TaxesPercent

GainTax Rate


Investment$1,000,000 120 8.76% $12,538 $1,504,567 $403,653 $1,403,653 40% 20%

Using Policy $1,000,000 120 5.00% $10,607 $1,272,786

Extra Interest 3.76% $1,932 $231,781

$1,000,000 120 4.50% $1,545 $800,625 $1,800,625 80% 98%

Number of Monthly

PaymentsLoan Interest

RateMonthly

PaymentsTotal Re-Payment

Gain After Taxes

Total After Taxes

Percent Gain

Tax Rate

Policy Loan Rate

Monthly Re-Payments

Total Re-Paid to Policy

Monthly Taxable

GainReduced

Taxable Gain

Starting Cash Value

of Policy

Number of Months

Invested

Earnings Rate of Policy

After Tax Gain Added

MonthlyGain In Policy

Value

Future Value of Policy

Percent Gain

Advantage of Policy


Private Family Banking is a powerful strategy for financing businesses.

The owner borrows money from his policy and loans it to his business (or leasing company).

The business can deduct the interest spent on equipment purchases.

Owner's policy grows as if loan was never taken. This effectively shifts income from his business to

his policy, tax free.


Additional Benefits of a Private Family Bank● Life Insurance (Death Benefit)● Major Medical (compare to an HSA)● Disability Protection (using a Rider)● Guaranteed Access (Emergency Fund)● College Savings (compare to a 529 Plan)● Retirement (compare to IRA or 401(k))● Asset Protection in case of lawsuit● Tax Protected growth (compare to ROTH) ● Estate Planning Tool (compare to a trust)


“Everyone should be in two businesses:Their business and the banking business.”

– R. Nelson Nash

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