Multi-Task Your Money By Understanding Core Banking Principals and Tier One Assets.

Multi Task Your Money by Under­stand­ing Core Bank­ing Principals

and Tier One Assets

It seems to me that what we are con­stantly being taught to do with our money is exactly what is best for the finan­cial insti­tu­tions. They have their prof­its in the fore­front of their advice to their cus­tomers. You and only you have your own best inter­est at heart and so it is imper­a­tive for you to make the effort to under­stand bank­ing prin­ci­pals and con­cepts so you can do what the banks do, not what they tell you to do.

We seem to be con­stantly advised to put our money here and put our money there which is divid­ing up our money and hav­ing it per­form one action/advantage at a time. We are taught to UNI-TASK our money and are sold mul­ti­ple prod­ucts to ser­vice this the­ory instead of solutions.

Look at the fol­low­ing finan­cial vehi­cles with two ques­tions in your mind – Who has the most use and con­trol of my money and how liq­uid is my money to me in this vehicle?

1. Sav­ings Accounts for Liq­uid­ity and over­draft protection

We have money in a sav­ings account for liq­uid­ity for a rainy day. The entic­ing fac­tor here is FDIC insured and being attached to a chequing account to help pre­vent over­draft fees. But the inter­est rate offered is so min­i­mal it is hardly worth keep­ing our money there.

There are also restric­tions of the num­ber of trans­ac­tions you can per­form each month and a lot of sav­ings accounts must also keep a min­i­mum bal­ance in them for which you will be penal­ized if you go under that amount.

Who ben­e­fits most from our money sit­ting in a sav­ings account? Of course the banks profit greatly by hav­ing access to our sav­ings by lend­ing it over and over and over again.

The banks have turned their lia­bil­ity (owing the saver inter­est) into an asset, by lend­ing the saver’s money over and over again thereby veloc­i­t­iz­ing their profits.

2. CD’s (Cer­tifi­cates of Deposit) for higher inter­est return and FDIC insured

We have money in a cd for a future rainy day so it can earn a lit­tle more inter­est. We are rewarded for allow­ing the bank use of our money for a set period of time by them offer­ing higher inter­est rates than a nor­mal sav­ings account.

Who has con­trol of our money and once again ben­e­fits most from the money in CD’s? Here we have no access to the cd with­out penalty. Prob­lem here is that let’s say the bank is pay­ing you 3% on the money you have in this cd. Now you need to bor­row some money from the bank. What inter­est rate are they going to charge you? They are now lend­ing you back your money at a much higher inter­est rate. How can you ever expect to get ahead if you are never earn­ing as much as you are paying?

Once again the bank has con­trol  of your money and is veloc­i­t­iz­ing their prof­its by using your money to lend at a higher inter­est rate. Turn­ing a lia­bil­ity into an asset.

3. Retire­ment Vehi­cles – 401(k), IRA, Roth IRA, SEP

We have money in a 401(k) or an IRA for our retire­ment. We are enticed to put money into these accounts by our employer match­ing con­tri­bu­tions or at least con­tribut­ing some­thing to these accounts for us and also by the mis­taken belief that a tax-deferred account is a good thing for us.

Rarely has any­one thought about this ques­tion; Would you rather pay taxes on a bag of seed now, know­ing what your tax bracket is or would you rather pay taxes on the 20 bags of growth of that one bag of seed that will be har­vested at a time when you do not know what taxes will be charg­ing you?

His­tor­i­cally, taxes have never gone down.  Also, as we can see by the past, you do not know if the prin­ci­pal you are putting into your 401)k) will even be there when you need it. There is no guar­an­tee of any growth either. You are allow­ing oth­ers to gam­ble with your hard earned money.

Also, sta­tis­tics show that over 90% of 65 year olds are either broke and/or still work­ing. So the the­ory that you will be in a lower tax bracket when you retire (ha ha) at age 59 1/2 is no longer reality.

So once again, who is in con­trol of your money with absolutely no con­se­quences for poor invest­ment deci­sions. But plenty of penalty prof­its if you want or need to with­draw your money out­side of ages 59 1/2 and 70 1/2.

60 min­utes on 401(k)’s -

On CBS news – The cre­ator of the 401(k) stated the pro­gram just isn’t work­ing - In 1980 Ted Benna cre­ated the 401(k). He now says the strat­egy of diver­si­fy­ing just doesn’t work.

It is time to retire the 401(k)

4. Edu­ca­tional Needs, 529’s

We have money in a 529 for our kids edu­ca­tion. Once again, who is in con­trol and who is using your money to profit for them­selves while it is sit­ting in the 529 wait­ing till your child is 18.

But what if your kid decides to start a busi­ness instead of going to col­lege? Your money will be charged high penalties.

Also, money in a 529 is con­sid­ered an asset and is there­fore taken into con­sid­er­a­tion when col­leges divvy out the finan­cial aid.

There is a bet­ter way. Why not put this money to work so it can be used for what­ever the child wants to do. So it can be given as a gift when ever you want to give it. Is not con­sid­ered an asset by col­leges if that is what is decided to use the money for. Isn’t it a bet­ter alter­na­tive, to be cre­at­ing a retire­ment fund, a tax-free death ben­e­fit, earn­ing tax advan­taged income while your money is grow­ing with a guar­an­tee of no loss of prin­ci­pal along with hav­ing no penal­ties charged if not used for edu­ca­tion, all with the same money?

Sounds sen­si­ble to use the alter­na­tive to me.

5. HELOC– equity in properties

We have money avail­able in the equity of our home for emer­gency fund, or ren­o­va­tions and home upkeep. How much inter­est have we paid to accrue how much equity? Haven’t we paid enough and so that equity should be eas­ily avail­able now. Not so. How many hoops do you have jump through just to access this equity?

And, once again, the bank con­trols this line of credit and could shut it off when ever they feel like it, so that line of credit could;

a) have it’s limit reduced or

b) be turned in to a loan or

c) have it’s inter­est rate increased. Who has con­trol of your money here?

6. Debts

We use other money for pay­ing off our debts. What lit­tle money is left after pay­ing taxes and liv­ing we put towards pay­ing off our debts. And of course, our mort­gage inter­est, being front-loaded with an amor­tized inter­est cal­cu­la­tion turns out to be more like 80% instead of 6%, quite often with­out the home-buyer under­stand­ing this.

See my post explain­ing this. – Here is another post with expanded expla­na­tions.

7.  Gifts.

A Christ­mas club account for pay­ing for gifts dur­ing the hol­i­day sea­son. I don’t remem­ber ever receiv­ing any inter­est on this type of sav­ings account. Once again, free money for the banks to lend out.

8. Diver­sify with stocks and bonds – High risk = high return is the catch phrase.

We put some money in stocks and/or bonds hop­ing for a great return. We are taught high risk = high returns but this is not nec­es­sar­ily the case. There is a bet­ter way. What is lit­tle known to peo­ple is that by the time the gen­eral pop­u­la­tion gets to buy stock, the high income earn­ers, who form clubs and get first dibs, have already bought what is most valu­able and the watered down left­overs are what every­one gets to choose from. Some­times they win, but how much have you lost com­pared to have much you have gained over the past 10 or 20 years?

Why is it OK to have no predi­ci­bil­ity, no guar­an­tees, pos­si­ble, even prob­a­ble, loss of prin­ci­ple, no secu­rity and no account­abil­ity on the part of the finan­cial man­agers? Unless you love gam­bling and love giv­ing some­one else con­trol of your money, it isn’t OK.

9. Mutual Funds.

Any­one actu­ally con­sid­ered how rates of return are cal­cu­lated and that unless you actu­ally pull out your profit when you earn it, you can be sure you will loose it again when the rates plum­met. See my blog post on rates of return to see how a 25% return can be a deceiv­ing mis­rep­re­sen­ta­tion of the truth. And how come mutual fund man­agers get paid whether your money is per­form­ing well or not? Who is play­ing with your money and get­ting paid whether they do a good job or not?

You are smart enough and you have enough time to look after your own bot­tom line like no one else will. I can steer you in the right direc­tion to accom­plish that. Sim­plify, and mimic what banks are doing.

10. Busi­ness Owner for Tax Advantages.

We may also have a part or full-time home-based busi­ness in the hopes of earn­ing some tax advan­tages by being able to deduct a plethora of expenses before pay­ing our taxes rather than pay­ing taxes on our earn­ings before we even see our pay cheque and hav­ing two or three at most tax deduc­tion choices. And some of us also believe it is so great to receive a tax refund at the end of the year. This just means you have allowed the gov­ern­ment access and use of your money FOR FREE rather than you being able to make the best use of your money dur­ing that year.

11. Life Insur­ance so loved ones are taken care of.

And we have term life insur­ance just in case we pass away early in our life so our fam­ily will be taken care of. Term insur­ance is really rental insur­ance. Did you know 97% of term poli­cies are never paid out. And after your 10 or 20 or 30 year term is up you may not be able to afford to buy the next terms insur­ance when you actu­ally need it because you are so much older and so the price is that much higher.

Also, you may have become un-insurable within the term also, so you may not be able to re-insure for another term because of this also.

12. Check/Cheque Accounts.

Best of all is the trusty old cheque account that we must always have money in to make sure we don’t over­draw and get charged $35 for over­draw­ing $5 on the account. Banks love cheque accounts because it is free money for them to use to lend back to us or to others.

This is lia­bil­ity free money for them as they do not owe us any inter­est on the money sit­ting in the account.

Banks sweep these and most all accounts every night to make sure our money is work­ing for them 24/7/365

13. Hoops Required to Jump Through When Bor­row­ing Money.

What sort of hoops do you have to jump through to be able to bor­row money? What are you taught to focus on when bor­row­ing money? Inter­est rate and how much will your monthly pay­ment be, right? By ignor­ing other impor­tant fac­tors you are dig­ging your­self fur­ther into debt.

Why not bor­row from your­self. I’ll show you the ben­e­fits obtained by doing this next blog.

The cur­rent finan­cial sys­tem is ludi­crous and it is time to wake up and smell the roses. This sys­tem has no secu­rity, no pre­dictabil­ity and no guar­an­tees and it is play­ing with your money and your life style.

Surely it is obvi­ous to you that this sys­tem is stacked highly in favour of …..well…… NOT YOU. Let us get out of the loan­er­ship busi­ness and get into the own­er­ship busi­ness. And if you think you are not loan­ing your money for these lenders to use at their will you need to look again.

Instead of get­ting upset with the way banks func­tion why not mimic their strate­gies. Why not learn from them and do the same thing.

How would you like to own your own bank­ing sys­tem that allowed you to do all these things, with the same money, plus much more? So instead of uni-tasking, sep­a­rat­ing it out so it only per­forms one advan­tage at a time and that advan­tage comes along with many restric­tions, penal­ties, and pretty much a total lack of con­trol I’m talk­ing about MULTI-TASKING your money while hav­ing liq­uid­ity of funds, con­trol of your money, guar­an­teed growth and many tax advan­tages in a very low risk vehicle.

Now I am not sug­gest­ing you don’t gam­ble on the stock mar­ket if that is what you like to do, how­ever, why not take the money out of your own bank­ing sys­tem to play with rather than some­one else’s bank, before you invest. Although one of the 5,000 year old bank­ing prin­ci­ples is ‘Banks Lend They Do Not Invest‘. If you own your own bank­ing sys­tem I sug­gest you fol­low this rule. Here are the other rules, Banks Turn Lia­bil­i­ties into Assets (pay us 3% on a sav­ings account but lend that money at a much higher rate, not just once, but over and over again. And Banks Shift the Risk to Some­one Else (Last in and first out and con­trol all the deals)

Not many peo­ple real­ize that before one can set up a brick and mor­tar bank char­ter they are required to hold a cer­tain amount of core reserves which are called tier one assets. What are tier one assets? It may sur­prise you to know where banks are required to hold money in four dif­fer­ent places.

1. Cash

2. Gold / pre­cious metals

3. Trea­sury Bills

4. Bank Owned Life Insur­ance (BOLI).

Notice there are no stocks or secu­ri­ties allowed as tier one assets because they are too risky.

It is the fourth tier-one asset that has been com­pletely mis­un­der­stood by the insur­ance indus­try agents up till now, and most likely for good rea­son. Big play­ers never want lit­tle play­ers to know their game.

For­tu­nately for you and I, some not only very smart, but very lov­ing, gen­er­ous peo­ple full of integrity and a desire to change the finan­cial sys­tem of our coun­try are shar­ing this method with who ever is will­ing to think out-of-the-box, lis­ten, and learn.

Bill Gates didn’t invent the com­puter but he did monop­o­lize a sys­tem that every­one in every house­hold  and small busi­ness owner could man­age to use.

Div­i­dend pay­ing, mutual whole life insur­ance poli­cies have been around for over 150 years and core bank­ing prin­ci­ples have been around for over 5000 years but this patent pend­ing pol­icy has been designed so every­one in every house­hold and busi­ness in Amer­ica can have access to their own bank­ing sys­tem and begin to change the flow of their money from flow­ing away from them to flow­ing back towards them.

These peo­ple have cre­ated a patent-pending div­i­dend pay­ing mutual whole life insur­ance pol­icy like no-one has ever put together before. It is so unique it is the first time an insur­ance pol­icy has even been allowed to go through the process of being patented. But, because it is in this process you can be assured the top lawyers, accoun­tants and insur­ance pro­fes­sion­als in the coun­try have scru­ti­nized it and even helped put it together so it is very legal and it is more than awesome.

We can super­charge our money instead.

Cer­tain, and in par­tic­u­lar, one patent pend­ing pol­icy, allows every indi­vid­ual to own their own bank­ing sys­tem thereby recap­tur­ing prin­ci­pal, and inter­est on loans while at the same time

- Pro­vides a Death Benefit

- Pro­vides Cred­i­tor Protection

- Has a Dis­abil­ity rider

- Pro­vides an emer­gency fund

- Pro­vides avail­able funds to bor­rower for your liv­ing needs

- Is your retire­ment fund

- Pro­vides guar­an­teed growth

- Pro­vides a pos­si­ble dividend

- Pro­vides PUA that will increase your death benefit

- Pro­vides avail­able funds for your daugh­ters wed­ding or col­lege or car

All in ONE SYSTEM – Where else can you MULTI-TASK your money by per­form­ing all these advan­tages with the same money at the same time?

And this is just the tip of the iceberg.

There is so much more to this phe­nom­e­nal system.

I would be so happy to share this infor­ma­tion with you if you would like to con­tact me on 845 – 649-7487 or leave a com­ment on this blog post. If you would like to see what this sys­tem can do for your per­sonal sit­u­a­tion, (no charge for this ser­vice) fill out this form today and then either email or fax it to me.