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The Infinite BankerTRANSCRIPT
INFINITE BANKINGBECOME YOUR OWN BANK
The New 200 YEAR OLD Life Changing Secret to
Growing and Protecting Your Financial Future
YOU NEED TO KNOW…This presentation will discuss certain financial strategies. Any information
obtained during the course of this meeting may be used for the solicitation of life insurance and/or annuity products by a
properly licensed insurance professional.
Any discussion of the tax treatment of products and services discussed within this
presentation are based on our current understanding of tax laws and regulations,
which are subject to change. Such information is presented for educational purposes only, and should not be relied
upon as professional tax advice.
You should always consult your
personal tax advisor or attorney
CAN THIS HAPPEN TO YOU?
Suppose what you thought to
be true regarding paying off debt and saving for
retirement turned out not to
be true.
WHEN WOULD YOU WANT TO KNOW???
DISCOVER HOW YOU CAN...
• Have a rock-solid financial plan and a predictable retirement income.
• Turn your back on the stomach-churning twists and turns of the stock and real estate markets.
• Get back every penny you pay for your cars, vacations, a college education, and other major purchases, so you can enjoy more of your life.
• Become your own source of financing and recapture the interest and principal you pay to banks.
• Take advantage of current U.S. tax laws to earn money Tax Deferred and Tax Free.
“The problem in America isn’t so much what people don’t know; the problem is what people think they know that just ain’t so.”
-Will Rogers
THE ROAD WE ARE ON…
• The individual savings rate in the U.S. is less than zero percent. The average household now spends more money than they make.• Consumer debt now tops $3.5 Trillion.• Will future tax rates likely be:
LOWER
SAME
HIGHER
This is a Road to a Rocky Ending
TAX BRACKET HISTORYTOP MARGINAL RATE
IS YOUR 401(K) UNDER WATER?
“The ugly truth, is that the 401(k) is a
lousy product, a financial flop, a
rotten repository for our retirement
reserves. In what must seem like a
cruel joke to many, the accounts proved the most dangerous for those closest to
retirement. This isn’t how retirement was
supposed to be.” - October 19, 2009
STOMACH-CHURNING TWISTS & TURNS OF THE STOCK MARKET
$100,000 Invested in the S&P 500 1-1-2000 to 12-31-2009 (10 Years) Value $ 91,000 -0.99%
1-1-2002 to 12-31-2009 (7 Years) Value $ 113,000 +1.56%
1-1-2006 to 12-31-2009 (3 Years) Value $ 97,000 -0.66%
1-1-2008 to 12-31-2008 (1 Year) Value $ 63,000 -37.0%
1-1-2009 to 12-31-2009 (1 Year) Value $ 127,000 +27.0%
“I feel like I was closer to retirement at age 40
than I do now at age 50.” Major Brokerage Company Advertisement
October, 2009
*Figures from www.moneychimp.com
Stomach-Churning Twists &Turns of the Stock Market
YEAR RETURN
2000 -9.11
2001 -11.98
2002 -22.27
2003 +28.72
2004 +10.82
2005 +4.79
2006 +15.74
2007 +5.46
2008 -37.22
2009 +27.11*Figures from www.moneychimp.com
$100,000 Invested in the S&P 500 1-1-2000 to 12-31-2009 (10 Years) Value $ 91,000 -0.99%
1-1-2002 to 12-31-2009 (7 Years) Value $ 113,000 -1.56%
1-1-2006 to 12-31-2009 (3 Years) Value $ 97,000 -0.66%
1-1-2008 to 12-31-2008 (1 Year) Value $ 63,000 -37.0%Q1: With regard to your $100k invested in 2008, what return would you need to get back to even? 59%Q2: Do you think the next 10 years will
perform better or worse than the last 10 years?
1-1-2008 to 12-31-2009 (2 Years) Value $ 80,000 -10.7%
*Figures from www.moneychimp.com
SO…WHAT’S THE NUMBER ONE PROBLEM KEEPING US FROM
ATTAINING THE “GREAT AMERICAN DREAM?”
THE INTEREST VOLUME WE PAY ON OUR DEBT!
“You finance everything you buy. You either pay interest to someone else, or you give up interest you could have earned somewhere else. There are no exceptions.”
-Nelson Nash-
KEY CONCEPT1. Interest Volume: Finance a
purchase; you pay interest to a bank. That money is gone forever and will never earn you anything.
2. Lost Opportunity Cost: You give up interest or investment returns you have earned could somewhere else, even if you pay cash.
It’s Not the Annual Percentage Rate… It’s the VOLUME of Interest
Family Income$100,000 - $30,000 (income tax) = $70,000
after tax$70,000/12 months = $5,833/month
$2,046/$5,833 = 35%Example
Interest Rate
Amount
Payment
Principal
Interest
% of Payment
Mortgage
6% $350,000
$2,098 $348 $1,750
83% Interest Volume
Car 7% $25,000 $599 $453 $146 24% Interest Volume
Credit Cards
18% $10,000 $200 $50 $150 75% Interest Volume
TOTAL: $2,897 $851 $2,046
70% Interest Volume
The average family spends 34.5% of after tax dollars in Interest
payments!
INTEREST VOLUME HURTS
Interest Volume Savings Living Expenses
$70,000 After Tax Income
$30,500 Living
Expenses
$34,500 Interest Volume
$5,000 Savings
What rate of return does your $5,000 Savings have to earn to make up for the
$34,500 spent on Interest?
INTEREST VOLUME HURTS
Interest Volume Savings Living Expenses
$70,000 After Tax Income
$30,500 Living Expenses
$34,500 Interest Volume
$5,000 Savings
Most advisors focus on getting a higher Return on Money
Fixing the 34.5% Interest Volume Problem
Will Allow More Money For Retirement
690% Return needed on $5,000 Savings to make up for $34,500 Spent
on Interest!
THE UNIVERSAL PROBLEMCurrent Solution: Borrow money from a financial institution.
Result: Between Interest Volume and Lost Opportunity Cost, the average family is in a Modern Day Financial Prison.
BECOMING YOUR OWN FAMILY BANK!!!
Better Solution: Reduce Interest Volume and Recapture Lost Opportunity Cost by:
DO BANKS MAKE MONEY?
Local Regional National
Total Income $77,060,000
$1,354,390,000
$40,087,000,000
Interest Expense
$21,390,000
$527,890,000 $16,093,000,000
Gross Return 360% 257% 249%Local Regional National
Total Income $77,060,000
$1,354,390,000
$40,087,000,000
Interest Expense
$49,140,000
$1,067,390,000
$33,200,000,000
Gross Return 157% 127% 121%Local Regional National
Default Rate
1.39% 0.58% 1.02%
BANK GROSS PROFIT
:
DEFAULT RATE:
BANK NET
PROFIT:
Bauer Financial, Inc.
CREATING YOUR OWN BANK
MAKE YOUR MONEY WORK FOR YOU!
Get MoneyFlowing to
YOU… Not AWAY from you!
INFINITE BANKING… BANK FUNDING CHOICES?
WHICH FUNDING VEHICLE PERFORMS THE BEST?
• Savings Account/ Money Market/ CD’s
• 401(k) Government Plans/ 403B /IRA /ROTH
• Stock Portfolio / Mutual Funds• Home Equity Line of Credit
(HELOC)• A Properly Structured Whole Life
Insurance Contract
Why a properly structured whole life
insurance contract is the best vehicle to fund your
family bank We use a specially designed, very specific type of policy.
1. Cash
2. Treasury Bills
3. Precious Metals
4. Whole Life Insurance (BOLI)
Tier One Assets (Core Reserves)
DO WHAT THE BANKS D0
DO WHAT THE BANKS DO
Bank Amount % of Tier 1 Capital
Bank of America
$14.4 Billion 15%
Wachovia $12.87 Billion
39%
JP Morgan Chase
$7.87 Billion 10%
WaMu $4.28 Billion 20%Wells Fargo $3.69 Billion 12%
Bauer Financial, Inc.
HERE IS YOUR CHANCE TO BE ALL THREE
This triple play ELIMINATES
RISK and turns liabilities into
ASSETS.
Most importantly, it
puts YOU in control of YOUR
MONEY!
The BankerThe BorrowerThe Depositor
Ex. Interest
Rate
Amount Payment
Principal
Interest
% of Payment
Car 7% $25,000 $599 $453 $146 24%
THE INFINITE BANKINGWHOLE LIFE CONCEPT
Sound / Timeless Economic PrincipalsGuaranteed Earnings and
Predictable GrowthNon-Guaranteed Annual Dividends
Current U.S. Tax Laws Interest & Dividends Grow Tax Deferred
Earnings Can be Accessed Tax FreeBenefits
Creditor Proof; Liquidity of FundsDeath Benefit is Tax Free Can be Estate Tax Free
THE INFINITE BANKINGWHOLE LIFE CONCEPT
• Whole Life Insurance stays in force for your “whole life” Tax Free benefits require that the policy
must stay in force. Universal Life policies can lapse before death, losing this tax free feature.• Paid Up Additions – Turbo Charged Growth Accelerates Cash Value Growth Increases the Death Benefit Amount Provides Inflation Protection
THE INFINITE BANKINGWHOLE LIFE CONCEPT
When you borrow from your cash value, they credit you the exact same dividend regardless of taking a policy loan. They simply ‘don’t recognize’ that you’ve borrowed from your plan.
Ex: $50,000 - cash value $30,000 - loan $20,000 –balance
All the money you borrowed continues
earning for you in your plan at the exact
same pace, as though you never touched a
dime of it!
HOW TO GET BACK EVERY PENNY YOU PAY FOR MAJOR PURCHASESCARS BOATS
COLLEGE
VACATIONS
EVEN YOUR HOME
AUTOMOBILE PURCHASESLONG RANGE PICTURE (40 YEARS)$25,000 CAR, EVERY 4 YEARS4 ways to purchase the car:• Lease the Car• Buy / Finance the Car• Pay Cash (Capital)• The INFINITE BANKER WAY
Far more money will leave your home just to buy cars over your lifetime than most people ever
manage to save up for retirement!
OPTION 1: LEASE Monthly Payment $416.00 Interest $57.57 Loan Rate 7.5%
40 years, New Car, Every 4 years
Total Cash Paid $199,680Lost Opportunity Cost @6% $832,602TOTAL COST $1,032,282
-$1,032,282
$103,228 Ave. Cost Per Car Over 40 Years!
$0.00
($200,000)
($400,000)
($600,000)
($800,000)
($1,000,000)
($1,200,000)
($1,400,000)
($1,600,000)
($1,800,000)
Total Cash Paid
LostOpportuni
tyCost
OPTION 2: FINANCE Monthly Payment $604.00 Interest $84.00 Loan Rate 7.5%
40 years, New Car, Every 4 years
Total Cash Paid $289,920Lost Opportunity Cost @6% $1,208,874TOTAL COST $1,498,794
-$1,498,794$149,879 Ave. Cost Per Car Over
40 Years!
$0.00
($200,000)
($400,000)
($600,000)
($800,000)
($1,000,000)
($1,200,000)
($1,400,000)
($1,600,000)
($1,800,000)
Total Cash Paid
Lost Opportun
ityCost
OPTION 3: PAY CASH
YOUR CAPITAL
40 years, New Car, Every 4 years
Total Capital Paid $250,000Lost Opportunity Cost @6% $1,116,575TOTAL COST $1,366,575
-$1,366,575
$136,657 Ave. Cost Per Car Over 40 Years!
$0.00
($200,000)
($400,000)
($600,000)
($800,000)
($1,000,000)
($1,200,000)
($1,400,000)
($1,600,000)
($1,800,000)
Total Cash Paid
Lost Opportun
ityCost
THE POWER OF COMPOUND INTEREST
*From Dwayne Burnell’s “A Path to Financial Peace of Mind” pg. 9
PURCHASING YOUR CARS: SPEND MONEY AND GROW
WEALTHY• By borrowing from your Family Bank policy to pay cash for cars and other big-ticket items and making loan payments back to the policy, you can get back the money you pay for those items and recapture interest you now pay to banks.
• When the loan is paid off, you have the car and all the money you paid for it right back in your Family Bank plan, and then some, because your plan has been earning money for you the entire time on every single penny you borrowed from it!
LET’S CREATE OUR AUTOMOBILE POLICY
ASSUMPTIONS Male: Age 25, Non-Smoker / Paid Up Additions
Monthly Premium: $700 or $8,400 Annually
Lump Sum Contribution: $5,000
Car Loans: $25,000 / car, starting in year 5(10 cars over a 40 year period)
Retirement Income: Begins age 70 & continues for 21 years
Life Insurance Benefit: Paid at death at assumed age of 90
Age Year
Premium
Loan AmountCumulativeCash
Outlay
Net Cash Value
NetDeath Benefit
26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49
123456
98
101112
7
131415161718192021222324
13,400 0 13,400 8,723 528,5028,400 0 21,800 15,275 555,0698,400 0 30,200 22,361 582,6088,400 0 38,600 30,027 611,0418,400 25,000 54,500 19,837 621,8988,400 -7,500 70,400 35,651 658,9308,400 -7,500 86,300 52,500 696,99911,611 -4,289 102,200 70,200 748,9858,4008,4008,400
25,000 62,894 762,939-7,500-7,500-4,28911,611
134,000149,900165,800
81,683 802,695101,901 694,010123,086 746,822
8,4008,4008,40011,611
25,000-7,500-7,500-4,289
181,700197,600213,500229,400
119,413142,005165,939190,992
763,517806,023849,378902,327
25,000-7,5007,500-4,28925,000-7,500-7,500-4,289
8,4008,4008,40011,6118,4008,4008,40011,611
118,100
245,300261,200277,100293,000308,900324,800340,700356,600
191,347218,086246,283275,767280,502311,838344,899379,563
920,924965,171
1,010,1531,063,2531,083,6101,129,7931,176,7981,230,617
13,4008,400
30,02725,000
25,000
25,000
25,000
25,000
11,611
11,611
11,611
11,611
11,611
MALE, AGE 25, PREFERRED NON-SMOKER (FOR
ILLUSTRATIVE PURPOSES ONLY)
Age Year
Premium
Loan AmountCumulativeCash Outlay
Net Cash Value
NetDeath Benefit
50515253
25262728
54 29555657
303132
585960
333435
616263
363738
64656667
39404142
68 43 69
44 70 45 71 46 72 4773 48
8,4008,4008,40011,6118,4008,4008,40011,6118,4008,4008,40011,6118,4008,4008,40011,6118,4008,4008,40011,611
0000
25,000-7,500-7,500-4,28925,000-7,500-7,500-4,28925,000-7,500-7,500-4,28925,000-7,500-7,500-4,28925,000-7,500-7,500-4,28980,00080,00080,00080,000
372,500388,400404,300420,200436,100452,000467,900483,800499,700515,600531,500547,400563,300579,200595,100611,000626,900642,800658,700674,600
390,021427,414466,841508,125525,486570,031616,889665,932691,412744,545
858,943894,241957,463
1,023,782 1,093,0691,139,615
800,445
1,214,6611,293,4531,375,9231,365,2711,353,5601,340,5761,326,043
1,253,0101,301,3301,350,7331,406,1191,431,6171,483,4641,536,8001,595,5421,625,5881,682,1111,740,2561,803,2401,838,7721,901,4271,966,3242,035,8862,078,9992,149,3642,222,0472,298,9362,260,3972,238,0832,213,4982,186,579
25,000
25,000
25,000
25,000
25,000
11,611
11,611
11,611
11,611
11,611 1,375,923 2,298,9360 80,000
80,00080,00080,000
674,600
MALE, AGE 25, PREFERRED NON-SMOKER (FOR
ILLUSTRATIVE PURPOSES ONLY)
Age Year
Premium
Loan Amount
CumulativeCash
Outlay
Net Cash Value
NetDeath Benefit
7475
4950
76777879808182838485
90
100
51525354555657585960
65
75
000000000000
0
0
80,000
0
80,00080,000 80,00080,00080,00080,00080,00080,00080,00080,00080,00080,000
1,175,250
737,402
605,959
277,367
2,157,1112,124,8212,089,5032,050,9812,009,1971,964,0651,915,4681,863,1641,806,9081,746,2661,680,9521,610,669
1,309,8991,292,0231,272,2591,250,3541,226,0381,198,8781,168,5641,134,7371,097,0431,055,2351,008,977957,730674,600
674,600
674,600
674,6000 674,60080,00080,00080,00080,00080,00080,00080,00080,00080,00080,00080,00080,000
80,000 605,959 1,175,250674,60095 70 0 0 674,600 515,411 1,023,167
ALL INCOME TAX FREE!
MALE, AGE 25, PREFERRED NON-SMOKER (FOR
ILLUSTRATIVE PURPOSES ONLY) Total Premiums Paid: $374,600
Total Car Payments Paid:$300,000
Cumulative Cash Outlay:$674,600
Total Car Loans: $250,000
($25,000 x 10 Cars)
Cash Value at Age 70:$1,375,923
Retirement Income to Age 90:$1,680,000 ($80,000 x 21
Years)
Cash Value at Age 90:$605,959
Death Benefit at Age 90:$1,175,250
OPTION 4: BE YOUR OWN BANK 1. Lease -$1,032,2822. Finance -$1,498,7943. Pay Cash -$1,366,575
4. INFINITE BANKER Cash Outlay $674,600
Total Retirement: $1,680,000 Insurance Benefit: $1,175,250
Total Benefit: $2,855,250Plus the use of 10 cars for 40 years!
$3,250,000
$3,000,000
$2,750,000
$2,500,000
$2,250,000
$2,000,000
$1,750,000
$1,250,000
$1,000.000
$ 750,000
$ 500,000
$ 250,000
Retirement
IncomeFor 21 Years
Life InsuranceBenefit
At Age 90
IT’S YOUR CHOICE!
WE WILL HELP YOU FIND
THE MONEY!• IRAs/ 401(k)s / 403B / Government Plans• Lazy Money / Savings• Insurance Premiums / Deductibles• Tax- Refunds• Restructure Debt / Equity• Current Insurance Cash Value FUNDING YOUR FAMILY BANK
With After-Tax Dollars
PAY TAX ON THE SEED NOW…
AND GET ALL THE CORN TAX FREE!!!
QUESTIONS TO CONSIDER1.If you are age 50, on a scale
of 1 – 10 (10 being the highest) where are you now with your financial security?
2. What are you going to do in the next 15 years, that you haven’t done in the past 30 years, that is going to get you to a 10?
QUESTIONS TO CONSIDER
CAUTION:The Infinite Banking Concept is about building a solid financial foundation and a secure future. You’re not going to see those thrilling spikes, but you’re also not going to have those unpredictable, heart-stopping losses that inevitably follow.
It is not for everyone and is a long term strategy that requires discipline and patience, but it will…
SET YOU FREE!
TAKE THE NEXT STEP
1. Review your Personal Situation.
2. Create a Funding Strategy…we help with a Free Initial Analysis.
3. Create your Personal Strategy.
4. See if you Qualify.
5. Open your Family Bank.
HERE IS YOUR CHANCE TO FREE YOURSELF FROM
FINANCIAL PRISON!
FAMILY? or BANK?
FOR ADDITIONAL EDUCATION…
THANK YOU
ANY QUESTIONS?