What is a personal bank?


The Your Personal Bank concept is virtually unknown by most people. The financial industry has focused almost exclusively on the ultra-wealthy for this powerful financial concept. Only a tiny percentage of advisors have ever been introduced to it. Yet, many wealthy families, professionals, and business owners routinely use it regularly. The Rothschild family is one of the first families to employ this concept and have consistently used it to grow and preserve their family wealth for over 200 years. Ben Bernanke, former Federal Reserve Chairman, has nearly 100% of his liquid net worth invested in this concept. John McCain borrowed against his Personal Bank to start his initial campaign financing for his presidential campaign. JC Penny did the same thing to keep Penny’s open thru the Great Depression. FDIC reports that 15-40% of the average bank’s assets are invested in the Personal Bank concept. If it is good enough for banks, JC Penny, John McCain, Ben Bernanke, the Rothschild’s, and many others, why not you?

After being introduced to the Your Personal Bank concept investors often ask “Would it be better to invest directly or fund a Your Personal Bank policy, access the funds through a policy loan, then invest the money into the other investment?” Using Your Personal Bank will enhance your returns versus investing alone! The insurance company pays interest on the total cash (gross cash value) regardless of policy loans. You earn interest on the borrowed and non-borrowed funds. The borrowed funds can be used for any purpose, including re-investing into any other investment; stocks, bonds, mutual funds, real estate, business, etc. You would receive the combined return of the Your Personal Bank policy and your other investment.

Caution: Before funding another investment, make sure you are comfortable with the risks. Have a back-up plan to continue funding Your Personal Bank in case the other investment goes wrong. You do not want to lose tax-free, compound interest for the rest of your life because another investment lost money!

Below is a chart showing investment only returns versus funding a Your Personal Bank policy, accessing the funds through a policy loan, then re-investing the money into another investment.

 1  7%  8.84%  12%  11.84%
 2  7%  9.33%  12%  13.00%
 3  7%  9.81%  12%  13.94%
 4  7%  10.99%  12%  16.03%
 5  7%  11.38%  12%  16.73%
 6  7%  11.69%  12%  17.28%
 7  7%  11.99%  12%  17.81%
 8  7%  12.21%  12%  18.21%
 9  7%  12.43%  12%  18.60%
 10  7%  12.58%  12%  18.86%
 11  7%  12.80%  12%  19.24%
 12  7%  13.01%  12%  19.61%
 13  7%  13.16%  12%  19.87%
 14  7%  13.37%  12%  20.24%
 15  7%  13.59%  12%  20.61%


Compound interest accumulation in the policy guarantees an increasing amount of funds available through a policy loan. Compound interest growth in the policy also guarantees an increasing account value every year. Cash grows within the policy on a tax-deferred basis. Therefore, no taxes are owed when the cash value within the policy increases each year. The funds from policy loans are an advance from the death benefit and are tax-free. The funds are loan proceeds, not income, therefore no 1099 or any other tax form is issued by the insurance company when you access funds thru a policy loan.

Your Personal Bank is one of the only financial tools available that will allow you to grow, access, and pass on your funds to your heirs, all on a tax-free basis! And without age or income restrictions or market risk! Key Point: Funds can be accessed in some policies by dividend distributions and/or cash withdrawals. These can trigger a taxable event. That is one of the reasons why it is always recommended to access funds from Your Personal Bank thru a policy loan. (Based on current tax law. Contact your tax professional for specific details.)