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.

• Become your own source of financing and learn how to recover interest you have been paying 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 http://www.moneychimp.com/features/market_cagr.htm

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 http://www.moneychimp.com/features/market_cagr.htm

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?

$100K (2008) -37% = $63K

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

$63K at +59% = $ 37K

$63K + $37K = $100K

$ 63K (2009) +27%= $80K

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 could have earned 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

Living ExpensesSavingsInterest Volume

$70,000 After Tax Income

$30,500 Living Expenses

Interest Volume

$34,500

Savings

$5,000

What rate of return does $5,000 Savings have to earn to make up for the

$34,500 spent on Interest?

Living ExpensesSavingsInterest Volume

$30,500 Living Expenses

Interest Volume

$34,500

Savings

$5,000

Most advisors focus on getting a higher Return on Money

Fixing the 34.5% Interest Volume ProblemWill Allow More Money For Retirement

690% Return needed on $5,000 Savings to make up for $34,500 Spent on Interest!

INTEREST VOLUME HURTS

“THE UNIVERSAL PROBLEM”Current 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

HOW TO GET BACK THE INTERESTYOU PAY FOR MAJOR PURCHASES

CARS 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

Cash ValueWith

No Loan$ 116,571

#’s stay the same

#’s stay the same

See How Policy Loans Do Not Affect Cash Value

Cash ValueWith Loan

$ 116,571

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?