What would it look like if you could both grow and maintain wealth within your family?
Unfortunately, as we discussed in episode013 (listen here) Wall Street has separated us from our wealth and encourages us to take the easy way out by leaning on banks for lines of credit and loans.
They have created a “silo effect” and it is stunting the growth of our wealth.
Alternatively, we are taking a stand against this by utilizing the resources right under our nose within our family.
It makes all the sense in the world if you take a step back and look at the whole picture.
The Baby Boomer generation needs passive income to fulfill their largest worry of running out of money and being unable to work for money. Unfortunately, they are putting their money at great risk to enable access to decent returns.
On the contrary, generation X and the millennial generation need access to cash and financing. Unfortunately, they’re giving up large amounts of interest to enable access to cash and financing through traditional banks.
The secret to avoiding this lies within family banking.
So, you have one generation with a mass amount of money looking for a safe, competitive return to make their money last longer. Next, you have their kids seeking capital and accepting the fact they will have to give up interest in exchange for it…
Why are we not putting the two together to allow them to profit off of one another?
Here’s a quick, hypothetical example of what family banking looks like.
I am 27 years old and have a current outstanding car loan of $20k at 6% interest. My mother is 64 years old and currently seeking safe alternatives to the market.
She lends me the $20k (with the car as collateral) at 6% interest. I pay off the note and begin redirecting my monthly payment to her. She then continues to grow her wealth (and her legacy that will eventually be left to me).
In the example above, the 27 year olds cash flow never changed and the 64 year olds risk to earn 6% was never raised (in fact, it was likely lowered).
We understand doing business within the family is uncommon and, to be frank, strange.
However, no one can take care of your family like you can.
No bank. No credit union. No financial institution.
Someone should benefit from the banking function in your family. It might as well be you.
We personally have set up specifically designed policies on our kids and parents while implementing family banking strategies for land, school, businesses, and more.
We have also assisted many families with implementing these strategies.
By implementing a strategy such as this, our goal is for your entire family unit to gain more control of their wealth, create a richer legacy, increase safe passive income opportunities, build closer relationships and even implement a proactive estate plan.
By doing so, this will avoid limiting the potential of your family by avoiding unnecessary risk and added stress.
At its root, the process is simple. It works like this:
- Setup a Brainstorming Session with us HERE
- Review a Customized Plan
- Apply for Insurance
- Implement the Customized Plan
- Host an Annual Family Banking Summit with ALL Members Involved
When we work with families on plans like this, we have a set of expectations that we promise to meet. They are to meet with all family members to discuss this, assist with all documentation / paperwork needed to implement and provide ongoing educational resources for each member of your family.