Growing up in South Africa, I have had many red pill moments in my life but one of the biggest red pill moments was when I read The Creature from Jekyll Island by Mr. G. Edward Griffin which lifted the veil on the Federal Reserve System and Global Banking Operations.
I became obsessed studying and researching everything I could find about money, finance, financial systems, investing and the individuals and families that created and controlled the financial chessboard on which everyone on the planet unknowingly participates.
My purpose was the understand and figure out how in a rigged game, one could rig the game in your favor just as the global elite have done for centuries.
How does one have complete control over your financial destiny and become self-reliant, independent and free in a predatory financial system that has its tentacles in every area of our lives.
How do we create a system that we can control with security and predictability in an ever changing, volatile world?
The amazing thing about the Information Age is that with a little research and study, we can find the blueprints of how to achieve this. Banking and Financial institutions and the wealthy elite have created a system which they control and also systems outside of the system which provides them control and predictability to grow and multiply their wealth.
Banking and Financial Institutions understand that there really is one pool of currency out there. Currency is created through the central banking system and distributed through fractional reserve banking mechanisms by commercial banks. Once money has circulated through the economy, it goes back into the pool and the banking system. It always ends up back into the banking system.
How do we as individuals and business owners create our own pool of money outside of Wall Street to capture the currency that flows through our personal economies daily?
Where do we warehouse our wealth that allows us to have full control over it and protect it from wealth destroyers such as taxes, inflation, fees and commissions, opportunity cost and more? How can we position our wealth to have our assets do more than one function simultaneously as part of an overall strategy?
The elite have utilized real estate, art and gold over centuries to warehouse wealth and utilized the banks they own for their cashflow management systems.
If we study banking and financial institutions and take a look inside of “Family Offices”, we will find that over the past 200 years, mutual insurance companies and insurance contracts have been an important part of wealth capture and cashflow management for the wealthy elite.
High Cash Value Life Insurance contracts which is a dividend paying permanent life insurance contract build on a whole life insurance vehicle are used in combination with specific strategies by banking and financial institutions, corporations, and political and wealthy elite.
Why would they use this an insurance vehicle for wealth capture and cashflow management?
The principal of the currency you deposit into the contract is guaranteed, a percentage of growth on the principal is guaranteed and you get access to dividends since as a policy holder you are a shareholder in a mutual insurance company and get to participate in the profitability of the company. Mutual insurance companies have a track record of paying dividends consecutively since the mid 1800’s through market crashes, recessions, depressions and financial crisis’s.
The wealth captured in this vehicle never takes a step back. It grows predictable every year providing security and certainty.
The growth is tax free inside the vehicle and dividends are also tax free.
There are no limits on contributions, access and withdrawals from this vehicle. The Wall Street Journal has referred to it as the “Rich Man’s Roth IRA” since you can essentially set up your own tax-free retirement through this vehicle.
The vehicle also enjoys asset protection in most states – so it protects you against lawsuits and creditors.
The vehicle also allows provides a multiple of the account cash value as a death benefit that can be passed on tax free to your family. It plays a major role estate planning of the wealthy elite and transferring wealth from one generation to the next.
One of the biggest advantages is that the vehicle is that it provides the liquidity part of your system since you can access the funds at any moment for emergencies, investments and business opportunities through a policy loan.
The policy loan does not come from your cash value in your policy. Your policy and death benefit simply provide collateral for the policy loan that is paid from the mutual insurance company’s general account.
This means that the value from your cash value never goes down as in the case with loans taken from qualified retirement accounts such as 401k’s and traditional and Roth IRA’s and you get to leverage your own funds to invest in other income producing assets.
The policy is also private. It is a private contract between you and the mutual insurance company. It’s not public record.
They only reason we know banking and financial institutions, corporations and political elite have these contracts is through the required reporting they have to do. Policy loans are not reported to credit agencies.
Insurance like any other asset class is simply a vehicle and it is through the investor and the strategies implemented and executed by the investor that determines whether the vehicle is an asset and or a liability.
The biggest epiphany I have had in my life studying the wealthy elite and banking and financial institutions is that they did not do the same thing everyone else was doing, but only better.
They do the complete opposite of what everyone is doing and play by the rules of the game they have created to build and multiply their wealth predictably.
In future articles we will look at how cashflow insurance fits into strategies that combine other asset classes utilized by individuals, families, business owners, entrepreneurs and investors to build their wealth outside of Wall Street.
Live a Life of Passion and Purpose on YOUR Terms
M.C. Laubscher
M.C. Laubscher is the President and Chief Executive Officer of Producers Wealth (formerly known as Valhalla Wealth Financial) and creator & host of the popular business, investing and financial podcast, the Cashflow Ninja podcast.
You can access all of his educational resources at www.producerswealth.com
