Multi-Task Your Money By Understanding Core Banking Principals and Tier One Assets.

Multi Task Your Money by Understanding Core Banking Principals

and Tier One Assets

It seems to me that what we are constantly being taught to do with our money is exactly what is best for the financial institutions. They have their profits in the forefront of their advice to their customers. You and only you have your own best interest at heart and so it is imperative for you to make the effort to understand banking principals and concepts so you can do what the banks do, not what they tell you to do. We seem to be constantly advised to put our money here and put our money there which is dividing up our money and having it perform one action/advantage at a time. We are taught to UNI-TASK our money and are sold multiple products to service this theory instead of solutions.

Look at the following financial vehicles with two questions in your mind – Who has the most use and control of my money and how liquid is my money to me in this vehicle?

1. Savings Accounts for Liquidity and overdraft protection

We have money in a savings account for liquidity for a rainy day. The enticing factor here is FDIC insured and being attached to a chequing account to help prevent overdraft fees. But the interest rate offered is so minimal it is hardly worth keeping our money there. There are also restrictions of the number of transactions you can perform each month and a lot of savings accounts must also keep a minimum balance in them for which you will be penalized if you go under that amount. Who benefits most from our money sitting in a savings account? Of course the banks profit greatly by having access to our savings by lending it over and over and over again. The banks have turned their liability (owing the saver interest) into an asset, by lending the saver’s money over and over again thereby velocitizing their profits.

2. CD’s (Certificates of Deposit) for higher interest return and FDIC insured

We have money in a cd for a future rainy day so it can earn a little more interest. We are rewarded for allowing the bank use of our money for a set period of time by them offering higher interest rates than a normal savings account. Who has control of our money and once again benefits most from the money in CD’s? Here we have no access to the cd without penalty. Problem here is that let’s say the bank is paying you 3% on the money you have in this cd. Now you need to borrow some money from the bank. What interest rate are they going to charge you? They are now lending you back your money at a much higher interest rate. How can you ever expect to get ahead if you are never earning as much as you are paying? Once again the bank has control  of your money and is velocitizing their profits by using your money to lend at a higher interest rate. Turning a liability into an asset.

3. Retirement Vehicles – 401(k), IRA, Roth IRA, SEP

We have money in a 401(k) or an IRA for our retirement. We are enticed to put money into these accounts by our employer matching contributions or at least contributing something to these accounts for us and also by the mistaken belief that a tax-deferred account is a good thing for us.

Rarely has anyone thought about this question; Would you rather pay taxes on a bag of seed now, knowing what your tax bracket is or would you rather pay taxes on the 20 bags of growth of that one bag of seed that will be harvested at a time when you do not know what taxes will be charging you? Historically, taxes have never gone down.  Also, as we can see by the past, you do not know if the principal you are putting into your 401)k) will even be there when you need it. There is no guarantee of any growth either. You are allowing others to gamble with your hard earned money. Also, statistics show that over 90% of 65 year olds are either broke and/or still working. So the theory that you will be in a lower tax bracket when you retire (ha ha) at age 59 1/2 is no longer reality. So once again, who is in control of your money with absolutely no consequences for poor investment decisions. But plenty of penalty profits if you want or need to withdraw your money outside of ages 59 1/2 and 70 1/2.

60 minutes on 401(k)’s

On CBS news – The creator of the 401(k) stated the program just isn’t working – In 1980 Ted Benna created the 401(k). He now says the strategy of diversifying just doesn’t work.

It is time to retire the 401(k)

4. Educational Needs, 529’s

We have money in a 529 for our kids education. Once again, who is in control and who is using your money to profit for themselves while it is sitting in the 529 waiting till your child is 18. But what if your kid decides to start a business instead of going to college? Your money will be charged high penalties. Also, money in a 529 is considered an asset and is therefore taken into consideration when colleges divvy out the financial aid. There is a better way. Why not put this money to work so it can be used for whatever the child wants to do. So it can be given as a gift when ever you want to give it. Is not considered an asset by colleges if that is what is decided to use the money for. Isn’t it a better alternative, to be creating a retirement fund, a tax-free death benefit, earning tax advantaged income while your money is growing with a guarantee of no loss of principal along with having no penalties charged if not used for education, all with the same money? Sounds sensible to use the alternative to me.

5. HELOC- equity in properties

We have money available in the equity of our home for emergency fund, or renovations and home upkeep. How much interest have we paid to accrue how much equity? Haven’t we paid enough and so that equity should be easily available now. Not so. How many hoops do you have jump through just to access this equity? And, once again, the bank controls this line of credit and could shut it off when ever they feel like it, so that line of credit could; a) have it’s limit reduced or b) be turned in to a loan or c) have it’s interest rate increased. Who has control of your money here?

6. Debts

We use other money for paying off our debts. What little money is left after paying taxes and living we put towards paying off our debts. And of course, our mortgage interest, being front-loaded with an amortized interest calculation turns out to be more like 80% instead of 6%, quite often without the home-buyer understanding this. See my post explaining this. – Here is another post with expanded explanations.

7.  Gifts.

A Christmas club account for paying for gifts during the holiday season. I don’t remember ever receiving any interest on this type of savings account. Once again, free money for the banks to lend out.

8. Diversify with stocks and bonds – High risk = high return is the catch phrase.

We put some money in stocks and/or bonds hoping for a great return. We are taught high risk = high returns but this is not necessarily the case. There is a better way. What is little known to people is that by the time the general population gets to buy stock, the high income earners, who form clubs and get first dibs, have already bought what is most valuable and the watered down leftovers are what everyone gets to choose from. Sometimes they win, but how much have you lost compared to have much you have gained over the past 10 or 20 years? Why is it OK to have no predicibility, no guarantees, possible, even probable, loss of principle, no security and no accountability on the part of the financial managers? Unless you love gambling and love giving someone else control of your money, it isn’t OK.

9. Mutual Funds.

We rely on someone else’s opinion and put our trust in a risk based market. Why? Anyone actually considered how rates of return are calculated and that unless you actually pull out your profit when you earn it, you can be sure you will loose it again when the rates plummet. See my blog post on rates of return to see how a 25% return can be a deceiving misrepresentation of the truth. And how come mutual fund managers get paid whether your money is performing well or not? Who is playing with your money and getting paid whether they do a good job or not? You are smart enough and you have enough time to look after your own bottom line like no one else will. I can steer you in the right direction to accomplish that. Simplify, and mimic what banks are doing.

10. Business Owner for Tax Advantages.

We may also have a part or full-time home-based business in the hopes of earning some tax advantages by being able to deduct a plethora of expenses before paying our taxes rather than paying taxes on our earnings before we even see our pay cheque and having two or three at most tax deduction choices. And some of us also believe it is so great to receive a tax refund at the end of the year. This just means you have allowed the government access and use of your money FOR FREE rather than you being able to make the best use of your money during that year.

11. Life Insurance so loved ones are taken care of.

And we have term life insurance just in case we pass away early in our life so our family will be taken care of. Term insurance is really rental insurance. Did you know 97% of term policies are never paid out as a death claim. And after your 10 or 20 or 30 year term is up you may not be able to afford to buy the next terms insurance when you actually need it because you are so much older and so the price is that much higher. Also, you may have become un-insurable within the term also, so you may not be able to re-insure for another term because of this also.

12. Check/Cheque Accounts.

Best of all is the trusty old cheque account that we must always have money in to make sure we don’t overdraw and get charged $35 for overdrawing $5 on the account. Banks love cheque accounts because it is free money for them to use to lend back to us or to others. This is liability free money for them as they do not owe us any interest on the money sitting in the account. Banks sweep these and most all accounts every night to make sure our money is working for them 24/7/365

13. Hoops Required to Jump Through When Borrowing Money.

What sort of hoops do you have to jump through to be able to borrow money? What are you taught to focus on when borrowing money? Interest rate and how much will your monthly payment be, right? By ignoring other important factors you are digging yourself further into debt. Why not borrow from yourself. I’ll show you the benefits obtained by doing this next blog. The current financial system is ludicrous and it is time to wake up and smell the roses. This system has no security, no predictability and no guarantees and it is playing with your money and your life style. Surely it is obvious to you that this system is stacked highly in favour of …..well…… NOT YOU. Let us get out of the loanership business and get into the ownership business. And if you think you are not loaning your money for these lenders to use at their will you need to look again.


Instead of getting upset with the way banks function why not mimic their strategies. Why not learn from them and do the same thing.

How would you like to own your own banking system that allowed you to do all these things, with the same money, plus much more?

So instead of uni-tasking, separating it out so it only performs one advantage at a time and that advantage comes along with many restrictions, penalties, and pretty much a total lack of control I’m talking about MULTI-TASKING your money while having liquidity of funds, control of your money, guaranteed growth and many tax advantages in a very low risk vehicle.

Now I am not suggesting you don’t gamble on the stock market if that is what you like to do, however, why not take the money out of your own banking system to play with rather than someone else’s bank, before you invest.

Although one of the 5,000 year old banking principles is ‘Banks Lend They Do Not Invest‘. If you own your own banking system I suggest you follow this rule.

Here are the other rules, Banks Turn Liabilities into Assets (pay us 3% on a savings account but lend that money at a much higher rate, not just once, but over and over again.

And Banks Shift the Risk to Someone Else (Last in and first out and control all the deals)

Not many people realize that before one can set up a brick and mortar bank charter they are required to hold a certain amount of core reserves which are called tier one assets. What are tier one assets? It may surprise you to know where banks are required to hold money in four different places.

1. Cash

2. Gold / precious metals

3. Treasury Bills

4. Bank Owned Life Insurance (BOLI).


Notice there are no stocks or securities allowed as tier one assets because they are too risky. It is the fourth tier-one asset that has been completely misunderstood by the insurance industry agents up till now, and most likely for good reason.

Big players never want little players to know their game. Fortunately for you and I, some not only very smart, but very loving, generous people full of integrity and a desire to change the financial system of our country are sharing this method with who ever is willing to think out-of-the-box, listen, and learn. Bill Gates didn’t invent the computer but he did monopolize a system that everyone in every household  and small business owner could manage to use.

Dividend paying, mutual whole life insurance policies have been around for over 150 years and core banking principles have been around for over 5000 years but there is one insurance company with a patented policy design that everyone in every household and business in America can have access to as the chassis for their own private reserve system and begin to change the flow of their money from flowing away from them to flowing back towards them.

Permanent Life Insurance, provides every individual the ability to own their own private reserve banking system whereby they can capture principal, and interest on loans while at the same time – Provides a Death Benefit – Provides Creditor Protection – Has a Disability rider (if you chose to add this) – Provides an emergency fund – Provides available funds to borrower for your living needs – Is your retirement fund – Provides guaranteed growth – Provides a possible dividend – Provides PUA that will increase your death benefit – Provides available funds for your daughters wedding or college or car All in ONE SYSTEM – Where else can you MULTI-TASK your money by performing all these advantages with the same money at the same time? And this is just the tip of the iceberg. There is so much more to this phenomenal system. I would be so happy to share this information with you if you would like to contact me on 845-649-7487 or leave a comment on this blog post. If you would like to see what this system can do for your personal situation, (no charge for this service) call me today, Jennifer 845-649-7487

September 10, 2009 · Jennifer · 5 Comments
Tags: , , , , , , , , , , , , , , ,  · Posted in: 401(k), Multi-Task Your Money

5 Responses

  1. Joe Fox - September 15, 2009

    As always, you have provided a detailed comparison about the pro’s and con’s of the various forms of investment available to the consumer in a clear and concise way. Thanks for this outstanding outline!

  2. admin - September 21, 2009

    Thanks for visiting Joe and for your positive comment. I hope it helps people understand a change needs to be made and this is the best way to go.

  3. uberVU - social comments - November 21, 2009

    Social comments and analytics for this post…

    This post was mentioned on Twitter by jenniferbhala:

  4. Shiva - November 16, 2014

    Thanks for this detailed analysis! I’ve done some analysis on a few permanent insurance policies but I’d be very much interested in knowing the insurance company and policy design that you trust and recommend. It would be very helpful if you can email me further information! Appreciate your public service!

  5. Jennifer - December 7, 2014

    Sorry I just found your comment Shiva. Will reply via email shortly.

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