Why You Want to Be Your Own Bank?

I always want to be the “bank”…not in Monopoly… in real life.


You know how everyone thinks banks are safe places to park their savings?

That’s exactly what the banks want you to think. So you’ll put your life savings with them.

What’s your interest rate in your bank savings account?

Inflation is 3.3% each year…are you making or losing money in savings account?



The bank borrow money for almost free and lend YOUR MONEY out at 5%, 7%, 10% interest.

Related article: Is Your Money in Your Savings Account Working Hard for You? Or for the Bank?


How Be Your Own Bank Works

The cash value life insurance is a little known secret tool for wealth building and investing.

If is actually 2 products in one vehicle – life insurance and a savings account.

The difference between this “savings account” and your bank’s savings account is that the “cash value” savings account grows tax-free and is distributed to your beneficiary as tax-free death benefit.

Let me clarify this a little. Every cash value life insurance policy is different. Most charge interest rate for borrowing…some charge more and some charges less.

The Transamerica Financial Freedom Indexed Universal Life Insurance that I own and represent, charges a net interest rate of 0.75% for first 1-9 years, then 0% after 10 years.

Also a very important point to remember is when you borrow money from your cash value, you are not taking money out from your cash savings account, you’re borrowing money against your cash savings account, which is being used as a collateral for your loan. This is an added bonus, because your cash savings account continues to grow money tax-free while you’re enjoying your extra cash interest-free.

Another bonus with borrowing from a cash value life insurance is that you don’t have to repay your loan it you don’t want to.

How? Good questions!

Remember it is a life insurance policy. So it also has a face value. When you die, the insurance company will pay off your loan from the proceed of the death benefit.

If this is the first time you’ve heard of this life insurance feature, don’t be alarmed. Life insurance has come a long way just like mobile phone has evolved into smart phones.

Related article: Do You Have the Best Life Insurance?

Consolidate high interest debts

Long term care

Critical or terminal illnesses

Invest in real estate

Pay for college tuition

Pay for private school tuition

Start a business (like Walt Disney)

Supplement retirement income

College Planning Timeline

S.M.A.R.T. College Planning for a Debt Free Future

Are you concern about not able to provide for your child’s college education? Are you worry that you may have to take out home equity or personal loan to pay for your child’s college education? Are you worry that your child have to work during college to help pay for college tuition?

Cost of college is certainly a big concern nowadays. Most families do not have proper college planning. Most people focuses on saving for retirement and paying off debts, and only few plan for their children’s future.

College tuition, like everything else, has increased significantly over the years. In fact, cost of college goes up 6-7% every year. Currently in-state public school average $20,000 per year and private college average $40,000 – $60,000 for an undergraduate degree.

Did you know the average student takes 8 years to complete an undergraduate degree, which is usually a 4-year degree? That’s an additional 4 years of college tuition and 4 less years of potential earnings.

Most students change major about 3 times during their college years.


The son of a friend of a friend. I hope we had help this family with college planning. The son of a friend of my friend went to college and graduated from medical school with a medical doctor degree. After all the years and money spent acquiring the medical degree, the son decided he did not want to be a doctor.

You would never figure out what he became…

…a Catholic priest.

The parents did not know if they should feel blessed or angry with their son’s decision.


Because of the indecisiveness, many students graduate from college with enormous student loans.

Did you know the average student loan today is $37,172 for an undergraduate degree. Student with a professional degree can easily end up with a $150,000-$200,000 student loan after graduation.

And many college graduates end up in jobs that’s not even related to their course of study because they NEED a job to pay for their living expenses and start repaying their student loans.

That’s what happened to my friend’s daughter who graduated with a fancy but obscure science degree that she cannot find a job for, so she’s now working for some insurance company getting $10 an hour pay, the same pay as my teenager.

Do you want that for your son or daughter? Is that how you want your son or daughter to start their adult life?

In fact, student loans have now surpassed consumer debts in US.

Related article: Student Loan Debt In 2017: A $1.3 Trillion Crisis


help you maximize tax-free college savings & minimize cost of attending college

Tax-free money…

529 college savings plan

Coverdell education savings plan

Be your own bank (life insurance)

Free money…


Last resort money…

How do you plan to pay for college expenses?


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Are there better ways to navigate the higher education without incurring debts?

The answer is YES!

How about matching your child with a career path that matches your child’s talent and personality? How about matching your child with a college that he or she will excel, which in turn improving his/her job outlook? How about someone to help you navigate through the complicated financial aid application process and matching your child with little-known scholarships available?

These are all possible…

There are expensive ways to get a college degree…and there are also S.M.A.R.T. ways.

Does the idea of your child graduating from college on time with minimal debt appeal to you?

Related article: The High Price of Not Completing College in Four Years

  • help you create a financial plan to maximize growth and tax benefits to maximize reward when applying for financial aid,
  • maximize tax-free college savings accounts, such as 529 plans, Coverdell and cash value life insurance,
  • help your student graduate on-time in a field that he/she enjoys with great job outlook and minimal debts
  • find the right major so your student does not have to change major multiple times to find his or her calling,
  • find the right college that offers degrees in your student’s chosen major, so your student does not have to transfer college later, wasting more time,
  • locate free money in form of scholarships and grants opportunities to minimize out-of-pocket expenses,
  • help navigate the financial aid application process.


Smart College Planning Workshop

College Planning Made Simple…

College Planning Made Simple...

It's never too early to starting college planning. In fact the earlier the better. Just like everything else, college tuition has increased significantly...

There are many choices of financial vehicles for saving for college, but which one is the best for your child and your family.

Early and proper financial and college planning can help you decide what's the best college for your son or daughter, and how to qualify for the most financial aid.

Completing the FAFSA is not enough...

Little known facts: income from small businesses (less than 100 employees) and cash in life insurance do not count against financial need.