How to Get Back the Interest You Pay When You Become Your Own Financing Source and Bank On Yourself

What if there was a simple way to become your OWN source of financing? You'd be able to bank on yourself and pocket the interest you now pay to banks, credit cards and other financial institutions.

You'd make the same profits that banks are now making on you!

Now what if I told you that, by financing things yourself, rather than through an outside lender, you could ALSO get back the ENTIRE purchase price of your cars, vacations, a home theatre, business equipment, college educations and other big-ticket items?

Impossible, you say?

Oh, but it's not! In fact, America's bluebloods have been cashing in on this little-known wealth-building strategy for more than a century. But you DON'T have to be rich to do it, too!

It's not magic – although it may seem like it is – and it's easier to do than you might think. What I'm about to reveal to you has (until now!) been a well-kept secret I stumbled on, working since 1990 as a consultant to financial advisors.

Let me show you the power of this anyone-can-do-it strategy for turning the flow of money in your life from cash OUT to cash IN, using the cars you buy as an example…

Let's say you were to buy a new $25,000 car every 4 years from age 40-80 (10 cars total). To keep it simple, I'm not factoring in inflation or any trade-ins.

If you finance those 10 cars through a bank or car dealer, it will cost you $289,920, assuming a 7.5% interest rate. If you lease those cars, your cost will be $199,680.

And if you paid cash for the cars, your cost would be $250,000.

However, if you could bank on yourself and finance those 10 cars yourself, at the end of 40 years, you'd have $461,139 in your account! That means the difference between financing the cars through a bank, which would leave you $289,920 in the hole, and financing them yourself, the way I'm about to show you, which would leave you UP $461,139, is $751,059!

And, when you bank on yourself, instead of paying cash, you'd still come out $711,139 ahead! ($461,139 + $250,000 = $711,139)

Put another way, you have a choice: You can have the cars AND the money… or just the cars. Which would YOU rather have? (And this strategy can be used to get back the cost of ANY major purchase, not just cars!)

Do you have any idea what financial strategy or vehicle will let you do this?

Well, it's not a savings or money market account or CD. And it's not an investment account or retirement plan or IRA. None of them will work, for a number of reasons.

You can accomplish this by using a specially-designed type of life insurance policy. Now please DON'T stop reading if the words "life insurance" turn you off, because this is NOT the kind of life insurance most people know about!

To be able to bank on yourself, instead of lining the pockets of an outside lender, you must use a policy that has been specifically designed to turn a traditional life insurance policy upside down by going for maximum cash accumulation, while minimizing the death benefit.

It must also be a dividend-paying whole life "non-direct recognition" policy, that will pay you the SAME dividend, whether you've borrowed your equity in the policy or not.

Here's the 3-step process you use to become your own source of financing, and get back the full purchase price of big-ticket items:

1. Once your policy's cash value has grown enough to cover your planned purchase, you borrow your equity from the policy so you can pay cash for the purchase.

Of course, that means you won't be able to bank on yourself starting tomorrow. There's no such thing as a magic bullet. Becoming your own source of financing is like starting a business – and any business has a "start-up" phase. It's a one-time requirement that pays a lifetime of benefits.

2. You then begin paying your policy back, with interest, just as you'd be required to do if you had borrowed the money from an outside lender. But, in this case, the interest ultimately goes to increase the value of YOUR policy, just like the interest earnings from other investments the insurance company makes on behalf of all of its policy owners.

3. Because you're receiving interest and dividends, even on the funds you've borrowed (if it's a "non-direct recognition" policy), and your principal payments are going to the "You Finance Yourself Company," instead of an outside lender, you'll continuously recapture the full cost of your cars, and then some!

That means you'll be able to turn around and use those funds for your next car, and your next car after that, and for all the cars you buy for the rest of your life! And you'll no longer be a slave to a finance or lease company for your cars!

There are many other benefits of this powerful financial strategy, including…

* You can grow your wealth each and EVERY year, no matter what happens in the stock or real estate markets, and you CAN'T go backwards. Both your principal AND gains are guaranteed

* You'll create a tax-free income you can access when and how you want, according to current tax laws

* You can spend or invest your equity in your policy, and it will continue earning interest and dividends as though you never touched a dime of it. So your money literally works twice as hard for you!

Does this strategy really work?

My husband and I have used it to get back the full cost of our last 3 cars, and have laid the groundwork to get new cars for free for each of us, every 4 years, for the rest of our lives.

We've also used it to get back the full cost of 3 timeshare weeks at luxury resorts, 2 home remodeling projects, and $15,000 in medical expenses we incurred from my husband's quadruple bypass surgery, that weren't covered by our health insurance.

We've recently started 2 policies for our grandkids, so we'll get back the cost of their college educations and avoid the mistake most people make of funding an education with money that COULD have been used to enrich their retirement lifestyle instead.

Tip: Be sure to get the advice of a financial advisor with at least one year of advanced training in this strategy, or you could easily end up with a poorly designed policy (or the wrong kind of policy), and your cash value won't grow nearly as fast and/or you could lose the tax advantages.

This proven way to pocket the interest you pay to financial institutions and get back the purchase price of big-ticket items requires some discipline and patience. But it's well worth it to bank on yourself instead of outside lenders, and turn the flow of money in your life from cash out to cash in! [(c) 2007 Pamela Yellen]

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