An In-Depth Breakdown of Privatized Banking aka Build Banking - Replay

My name is Brian Scribonia and on this episode of the Common Sense Financial Podcast at my firm we have created a system called Build Banking that uses a specially designed whole life insurance policy that is built on the inherent tax favored nature and unique capabilities of these policies. What is different with Build Banking is the design that allows for rapid cash accumulation with uninterrupted tax free growth while having access to cash without relying on banks or Wall Street. To understand and appreciate how bill banking works, you really must take everything you know and understand about life insurance and set it aside because a specialty design whole life insurance policy is unlike the basic concept of insurance that many people are familiar.

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Opportunities are still there. The attempt at passing down wealth from generation to generation. Consider the outcome, not just popular opinion.

And the whole teaching there is about preparedness and being ready.

There's a difference between what's real and what's true. You're listening to the Common Sense Financial Podcast. I'm your host Brian Scribonia. Thanks for tuning in and let's get into today's topic. Most everybody knows that banks use other people's money to leverage profits for themselves by converting deposits into loans. But the real engine under the hood of this process is something called fractional reserve banking. At an elementary level, the banking system uses spreads between interest paid on deposits and interest charged on loans to make a profit. And when a deposit is made into a bank account, the bank pays the depositor interest as payment to access the money that is then lent out to the bank's clients. On the surface, this seems like common sense, but behind the curtain, there's some interesting math. When you file the money, imagine for a moment that a friend hands you $10,000 and then asks you to return the money back to them in 12 months with an additional $100. In this scenario, you are essentially renting the $10,000 for the next year for $100. At the same time, you coincidentally have another friend who asks you for a $10,000 loan and promises to repay that loan in 12 months with $400 in interest. So breaking this down, you see that you rented $10,000 from one friend for 100 bucks and turned around to lend the $10,000 to another friend charging them 400 bucks. You have no personal investment in this transaction other than the hundred dollars. And in 12 months you have $400 for a 400% profit. That is the front stage view of how banks work. But now let's go backstage on this. When a deposit is made, the money is loaned out to another who then deposits those dollars into other banks. And this makes for some interesting math. As money is deposited and lent out, those same dollars are deposited and lent out multiple times. Acting as a money printing machine, the money is multiplied with every deposit from one bank to another. Educating people about privatized banking and designing strategies helping clients take back some control of their savings by creating their own personal banking system. At my firm we have created a system called Build banking that uses a specially designed whole life insurance policy that is built on the inherent tax favored nature and unique capabilities of these policies. What is different with build banking is the design that allows for rapid cash accumulation with uninterrupted tax free growth while having access to cash without relying on banks or Wall street to understand and appreciate how bill banking works, you really must take everything you know and understand about life insurance and set it aside. Because a specially designed whole life insurance policy is unlike the basic concept of insurance that many people are familiar. As we already discussed, banks rent money from one person to lend to another person or business and it was that 400% profit that we were referring to. Using a build banking strategy, you have a similar capability to borrow money from the insurance company just as a bank borrows from their depositors to leverage growth outside of the policy. Consider the $10,000 example from earlier with a few tweaks as it applies to build banking, you receive a loan from the insurance company and let's say 5% and assume that growth inside of the life insurance policy is around 4%. On the let's assume the policy has a cash surrender value of $50,000 and when you apply the example of 4% of the growth, you have $2,000, the loan of 10 $10,000 to make an investment outside of the policy. So that way you have the internal rate of return of the policy and the opportunity for an External rate of return, doing something else. Now, there are many different types of contracts and there are strong opinions about how they work. But as you can see with my example, there is more to how life insurance works than what many people seem to realize, which makes the conversation around life insurance a bit tricky. A specially designed contract is engineered to rapidly accumulate cash, enabling the policy owner to access the cash values for banking purposes. Now, to be clear, the term banking as I'm referring does not suggest that a policy is an actual bank. The term simply represents a process of saving or borrowing money that most people associate with banking activities. People use banks every day, making deposits and paying bills from those accounts. It's a continuous process of earning, spending and replenishing the supply of money. It's like filling up a gas tank and driving. You must keep that tank full to have the ability to keep driving. And when you think about the process for making big ticket purchases, such as a new car, home improvements, or maybe a child's education, you find that you're either saving money over time to make these purchases, or you borrow money from a bank to fund these types of purchases. But regardless of how you approach these big ticket items, one thing is for certain. You will accumulate money and then you will spend it, or you'll borrow money, then pay the loan over time. Either way, it's a zero sum game, considering all arrows are leading to zero and requires a continuous need to earn, spend and replenish your money supply. It's a hamster wheel, and with every dollar spent, the opportunity cost become staggering. The idea of build banking replaces this traditional banking method with a specially designed life insurance contract to help create a system that could help recapture some control of this money you would otherwise spend. Now, inherent to a whole life policy, policy owners have access to money through policy loans. These loans are collateralized by the policy's cash surrender value and death benefit, allowing the cash value to remain inside the contract and continue earning dividends and interest. Accessing cash through a policy loan allows for uninterrupted compounding growth of your money inside the contract and allows for money to be moved in and out of the contract over time. It's important to note that not all policies are the same, and the loan features can vary greatly from one policy to the next. So be sure to work with somebody who is experienced with these designs. And don't just assume a contract you already own can function in this manner. Of course, loans are charged interest and insurance companies aren't charities. But the benefit of using a specially designed life insurance contract is the ability to have your money remain in the policy and continue to grow uninterrupted while simultaneously using a policy loan from the insurance company to access money for use. Now, a business owner has a greater advantage using billed banking because they can leverage the policy loan to invest in their business, creating both an internal and external return using the same money as described earlier. The other advantage is the ability to deduct interest charges while having the cost recaptured through the policy's growth. The management of a policy loan is very important considering since the insurance company doesn't force a repayment amortization. The insurance company charges interest annually and if you die or were to surrender the contract, they deducted a loan plus interest before proceeds are paid out. In other words, they know the loan will be repaid, so they're not necessarily concerned with whether you make an actual regular payment towards the loan, which is a huge advantage to the policy owner allowing control of how and when loans are repaid. The use of specially designed life insurance contracts, they do have limitations and there are cost involved. It's not a unicorn, and it's why it's important for someone considering the strategy to work with a seasoned financial professional who looks at their entire financial situation before making recommendations. You can learn more about Build Banking by visiting build banking.com that concludes today's podcast. I am Brian Scribonia. Thank you for listening to the Common Sense Financial Podcast.

Thanks for listening to today's show. If you liked what you heard, be sure to subscribe on YouTube and Spotify so that you can receive notifications when we release new episodes. I'm Brian Scribonia and this is the.