new presentation short

BUILD WEALTH &

KEEP IT

Most people think that to get ahead they must:•Work harder•Stop spending•Take more risks

© 2012 Private Family Banking. All Rights Reserved.

THERE ARE 3 WAYS TO VIEW MONEY

1) As a Spender

2) As an Investor or

3) As a Banker

© 2012 Private Family Banking. All Rights Reserved.

Let's Look at Spending Money on Cars

© 2012 Private Family Banking. All Rights Reserved.

THERE ARE 3 WAYS TO BUY A CAR

• Borrow Cash• Pay Cash• Private Family Banking

© 2012 Private Family Banking. All Rights Reserved.

Go to Buying Cars Graph

© 2012 Private Family Banking. All Rights Reserved.

THE INVESTOR

● Views money as a way to buy investments (i.e., he trades his money for an investment that he hopes will go up in value)● Every investment exposes him to risk● Every gain costs him taxes

The Investment Risk Game

% Loss To Recover % Gain Required

10% 11%

20% 25%

30% 43%

40% 67%

50% 100%

60% 150%

70% 233%

80% 400%

90% 900%

100% You're Broke

THE EFFECT OF TAXES

Taxes destroy your money’s growth.

Go to Effect of Taxes Calculator

© 2012 Private Family Banking. All Rights Reserved.

THE BANKER

● Views money as a way to make money● Every purchase is an opportunity to gain● Always keeps his money working

COMPOUND INTEREST

The interest earned on accumulated interest.

© 2012 Private Family Banking. All Rights Reserved.

Einstein called it the most powerful force in the universe.

© 2012 Private Family Banking. All Rights Reserved.

THE WEALTH CURVE

MONEY WORKING OVERTIME

THE COST OF FALLING OFF THE WEALTH CURVE

© 2012 Private Family Banking. All Rights Reserved.

9220 30 40 50 60 70 80

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

Age

THE COST OF FALLING OFF THE WEALTH CURVE

THE COST OF FALLING OFF THE WEALTH CURVE

© 2012 Private Family Banking. All Rights Reserved.

THE COST OF FALLING OFF THE WEALTH CURVE

22 27 34 41 48 55 62 80$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

Age

EVERY PURCHASE COSTS US INTEREST

We either:

PAY UP orGIVE UP

What if we could use our own money without giving up the

interest it would earn?

© 2012 Private Family Banking. All Rights Reserved.

STARTING PRIVATE FAMILY BANKING

• Create a pool of money• Put the money to work earning compounding• Use the pool of money as collateral when you

need cash

© 2012 Private Family Banking. All Rights Reserved.

PRIVATE FAMILY BANKING

●We use the same financial instrument that banks use to park their money in a safe place and get guaranteed growth.

●BOLI or Bank Owned Life Insurance is held by most banks and recommended by the FDIC.

●Permanent Life Insurance is a safe, liquid way to hold and use capital.

© 2012 Private Family Banking. All Rights Reserved.

WE CUSTOMIZE YOUR LIFE INSURANCEPOLICY SO IT GIVES YOU:

• Liquidity• Safety• Guaranteed growth• Protection from taxes• Protection from judgments (lawsuits)

© 2012 Private Family Banking. All Rights Reserved.

4 YEARS PAYING $5k ANNUALLY

Cash Accumulation Comparison© 2012 Private Family Banking. All Rights Reserved.

0 Year 1 Year 2 Year 3 Year 4

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

Term

Typical Whole Life

PFB Optimized Whole Life

Cash V

alue

PRIVATE FAMILY BANKING

© 2012 Private Family Banking. All Rights Reserved.

If you control your own banking system,you can CAPTURE THE INTEREST that you’ve been paying (never to be seen again!) to someone else.

AVERAGE AMERICAN SPENDS $$

© 2012 Private Family Banking. All Rights Reserved.

Go to Income CalculatorAutos Housing Living Savings

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

Payments

34.5% IS SPENT ON INTEREST!

© 2012 Private Family Banking. All Rights Reserved.

Autos Housing Living Savings0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

PrincipalInterest

© 2012 Private Family Banking. All Rights Reserved.

Autos Housing Living Savings0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

SavingsMortgage InterestAuto InterestLiving Exp. Interest

CAPTURE THE INTERESTYou Have Been Paying to Others!

NOW YOU ARE THE BANKER

© 2012 Private Family Banking. All Rights Reserved.

Premiums or Payments

MoneyPool

MORTGAGES

CREDIT CARDS

CARS

RECAPTURE THE INTERESTBEING SPENT ON INTEREST

© 2012 Private Family Banking. All Rights Reserved.

Autos Housing Living Savings0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

SavingsMortgage InterestAuto InterestLiving Exp. Interest

PRIVATE FAMILY BANKING

© 2012 Private Family Banking. All Rights Reserved.

1 2 3 4 5 6 7 8 9 10111213141516171819202122232425262728293031323334353637383940

-2000000

-1500000

-1000000

-500000

0

500000

1000000

1500000

2000000

Savings Cars Credit Cards etc. Mortgage

Years

Dol

lars

PRIVATE FAMILY BANKING

© 2012 Private Family Banking. All Rights Reserved.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

-2000000

-1500000

-1000000

-500000

0

500000

1000000

1500000

2000000

Savings Cars Credit Cards etc. Mortgage

Years

Dol

lars

BENEFITS OF PRIVATE FAMILY BANKING• Life Insurance (Death Benefit)• Major Medical (compare to an HSA)• Disability Protection (using a Rider)• Guaranteed Access (Emergency Fund)• College Savings (compare to a 529 Plan)• Retirement (compare to IRA or 401(k))• Asset Protection in case of lawsuit• Tax Protected growth (compare to ROTH) • Estate Planning Tool (compare to a trust)

© 2012 Private Family Banking. All Rights Reserved.

© 2012 Private Family Banking. All Rights Reserved.

“Everyone should be in two businesses:What they do for a livingand the banking business.”– R. Nelson Nash

Our Thank You for attending this

presentation entitles you to a free financial

analysis. Appointment about an hour.