The banks biggest financial secret revealed
Today’s blog post might make you very angry. At least, that was my initial reaction. When I came across the Infinite Banking Concept, and while researching everything I possibly could on the subject, I came across something pretty revealing.
Banking and financial institutions and corporations are telling the public to max out their contributions to qualified plans (401Ks, 403bs, I.R.As), and invest for the long haul in mutual funds, while they do something completely different with their own money.
According to a Morningstar study, out of 2,257 equity managers investigated, 51% owned ZERO stakes in the funds they managed.
“Amazingly, many portfolio managers don’t invest in the funds they’re running. According to Chicago-based fund research firm Morningstar, 45 percent of stock funds and 66 percent of bond funds that are considered ‘core’ – basic building blocks of a portfolio, like an S&P 500 index – have a grand total of zero manager investment.” – Reuters October, 2011
Banks have a portion of their money that they have to put in the safest investments available: Tier 1 capital. If you take a peak on the FDIC’s website, which is available to the public, you will see that they put the maximum allowable amount by law in Life Insurance. The banks own these policies on their employees, and use them to fund executive compensation and bonuses.
The Bank of America has over $18.5 billion, which is 20 times more than the amount they invested into their 2.1 million square foot headquarters in New York.
From 2009 – 2011, Wells Fargo increased their holdings in cash value, whole life insurance from $5 billion to $20 billion: 30% of their total liquid assets
J.P Morgan Chase has $9.8 billion, and Citibank has $4.5 billion.
According to the FDIC*, 4,000 Banks have over $140 billion in Cash Value Life Insurance.It is known as “BOLI”, bank owned life insurance.
That is why, within the banking industry, high cash-value, permanent life insurance is known as the “bank’s bank.”
It gets even better. Corporations like Walmart (they have over 300,000 policies on employees), General Electric, Comcast, Disney, CBS Corporation, The New York Times, Time Warner Inc., Viacom, Johnson & Johnson, Harley-Davidson, Gannet, Verizon, and close to 700 other Fortune 1000 companies, fund executive compensation and pensions with life insurance products, due to these products being guaranteed money to be available when they need it.Corporate owned life insurance is known as “COLI”.
How much of your savings and investments is guaranteed to be there when you need it? What would happen to your savings and investments if we have another market collapse?
The Wall Street Journal believed that this financial strategy “gives the affluent tax advantages far beyond those available to middle-income people through a 401(k) or IRA.”
The game is rigged, but by increasing your financial education and proper application of powerful concepts and strategies, you can have the game rigged in your favor and beat powerful banks, financial institutions and corporations at their own game.
Yours in purpose and prosperity,
*To look up the amount of Cash Value Life Insurance banks, go to www.fdic.gov. Then, hover over industry analysis, click on bank data and statistics, click on the second bullet point down, institution directory, and finally click find institutions. There, you can enter the institution name and click find. It will bring up certificate numbers of the biggest locations. Click on generate report. You can then look at the institution assets; scroll down to around line 40 and below, and that is where you will find life insurance assets, which lists the cash value life insurance assets the institutions have.
The information, opinions, and financial data presented are for educational purposes only and are not intended as investment advice. No guarantees are made as to the accuracy of the information provided herein. Situations can change from day to day. Every investor should do their own due-diligence to determine which investments are best for them.
You must assume the responsibility and liability for all decisions that you make on the basis of the information herein contained. Valhalla Wealth Financial, makes no warranties, expressed or implied, as to the fitness and accuracy of the information provided or for the results obtained by using the information. Those making investment decisions based on any of the information presented should do so in the knowledge that they could experience significant losses. In no event shall Valhalla Wealth Financial/Laubscher Wealth Management LLC be liable for direct, indirect, or incidental damages resulting from the use of the information.