Marshall Family Banking System: The Capitalization Phase

Do you want to build your family bank that will provide capital to you and future generations? Come see behind the scenes as we talk about our Marshall Family Banking System in real-time.  https://www.youtube.com/watch?v=c4u4YRT5wIs Today, we’re updating you in real-time to show the impacts of paying another year of premium, how our cash value is growing, and our vision for how we’ll use our family bank as the foundation to grow generational wealth. So, if you want to see exactly how and why you can grow a family bank to secure capital reserves for your family for generations to come… tune in now! Table of contentsHow Do Life Insurance Illustrations WorkA Brief History of the Marshall Family BankMaximizing Human Life ValueThe Capitalization Phase of Infinite BankingWhere the Marshall Family Bank StandsOther Installments of the Marshall Family Bank SeriesBook A Strategy Call How Do Life Insurance Illustrations Work [3:45] “What I want you to understand is that the illustrations are simply snapshots in time. They are the insurance company’s best guess at what’s going to happen. In some periods of time—whether it’s 5 years, 10 years, 20 years, 30 years—[the policies do] better than what they projected. And then some periods of time they’re slightly worse than what they projected.”  Because of the nature of these projections, illustrations go out of date quickly. As soon as the floor of your cash value increases, your illustration is out of date. First, you’ve “locked in” your cash value floor, which will affect all future projections. And second, every year the companies declare new dividends, which will change the projections.  Ultimately, when you look at an illustration, it’s a snapshot in time. So although you can trust the general trajectory of your policy, thanks to the good work of the actuaries, it won’t be accurate to the dollar. Don’t get bogged down in the minor details of illustrations. What’s most important is that you find a mutual company with good business practices.  [9:13] “There are too many people selling on the basis of an illustration, which is a projection, which can look really good up front. But the real reason to have an infinite banking policy is that you’re looking for a place to store cash that is safe, it’s liquid, and that’s growing. And if you’re looking for as much safety [as possible], you want a stable, solid company.”  A Brief History of the Marshall Family Bank We’ve discussed how we got into Infinite Banking in other posts, but we’ll do a quick recap for you here. In December of 2012, we opened our first infinite banking policy on Lucas. At the time, we had a pretty sizeable store of gold and silver but found that we weren’t in a position of much liquidity that way. Because the market was down at the time, we ended up losing about half of what we put into those assets.  This was a major catalyst for us to change how we thought about our savings and capital. We realized how valuable it was to have quick and easy access to your money, as well as protection from market losses.  In November 2021, we did a 1035 exchange of that policy into a new policy with a higher annual premium of $20,000. Then, about 7 months ago, we opened a policy on me, as previously I had only had term life insurance. That policy has a $30,000 premium.  When we set up my policy, we backdated it by six months, before my birthday. This allowed us to get more bang for our buck because the cost of the insurance is less the younger you are. It also allowed us to put more capital in from day one of the policy. So our first premium was able to be retroactively applied to when we backdated the policy. Effectively, this allowed us to pay two years' worth of premiums in a year.  Maximizing Human Life Value In addition to our two whole life insurance policies, we also have term insurance that helps us reach our full Human Life Value.