Turn a depreciating asset into an appreciating asset.

Turn a depreciating asset into an appreciating asset.

A simple and common car purchase example:

Car cost $25,000 – term 4 years – interest 7.87%

1) Finance car through bank or other lending institution;

After 4 years you have paid the bank $25,000 + $4,222 = $29,222.00 principal and interest.

Suppose depreciated value of car, at year 4, is now $9,000, subtract that from total cost and that means this transaction cost you $20,222.

2) Finance car using your own private reserve financing strategy.

Borrow, tax and penalty free,  the money from the general fund of the mutual insurance company that holds your specially designed for private reserve banking life insurance policy.

As owner of your policy you have first rights to the equivalent of the cash value, so simply make the same payments you would have paid a regular corner bank, only you pay back the insurance company general fund from where the money was borrowed.

After 4 years you have replaced the $25,000 principal back plus the additional $4,222 interest as well, for a total of $29,222.00.

The $9,000 depreciated value of the car added to the $29,222 means we now have a total asset value of $38,222.

However, this is just the beginning. Without giving away the ingredients to our secret sauce of how our private reserve banking strategy works, there are guaranteed growth and non-guaranteed dividends that could potentially put the total asset value at $78,738; over triple the purchase price of the depreciating asset.

After subtracting the premiums and interest paid over the four years the actual asset gain from this transaction is $51,729.00.

What would this look like with an appreciating asset?

How many times do you go to a bank or a credit card to borrow money?

Replace the car with equipment purchases, capital improvements, real estate, vacations, higher education costs, weddings.

It is your private reserve financing system. You can decide when you want to borrow and what you want to buy.

Simply by using the cash value equivalent in your policy as the meter for the amount you can borrow from the insurance companies general fund using the death benefit as collateral, a supplemental retirement income is being created through one’s lifetime.

This is just the tip of the iceberg. Now you can see why I am so happy, or should I say ecstatic.

I am licensed to set up your private reserve banking system. If you are interested in a free-of-charge consultation, give me a hollar. As I said, that is just one example. There are many other benefits as well.

By the way – below is a graph showing the benefits of buying 10 cars over a 40 year period using your own private reserve banking system instead of someone else’s.




Purpose of Loan- Must be for a specific item like car, appliance, home, etc.

Approval- Must be approved for the loan

Credit Check- Approved credit history as well as reliable income source(s)

Terms & Conditions- Interest Rate, Amortization Schedule, Pre-Payment Penalty if any

Collateral Security- Usually the item financed and/or some other cash deposits

Inability to Meet Terms & Conditions- Repossession of item and credit score takes a hit

Recovery or Offset of Financing Costs- Interest, fees or charges cannot be recovered. It’s gone forever


Purpose of Loan- For anything you want. No questions asked.

Approval- Guaranteed access to cash

Credit Check- Absolutely no credit check

Terms & Conditions- Ability to set loan repayment schedule or delay repayment if needed

Collateral Security- Policy values (Cash Value & Death Benefit) secure the loan

Inability to Meet Terms & Conditions- No effect on credit history nor credit score

Recovery or Offset of Financing Costs- Ability of offset financing costs as well as build additional wealth along the way

September 21, 2009 · Jennifer · 3 Comments
Tags: , , , , , , , , ,  · Posted in: Turn Depreciating into Appreciating Asset

3 Responses

  1. ofigennoe.ru - October 9, 2009

    Thank you very much for that great article

  2. Me - February 24, 2013

    Paying ones self (ie borrowing from ones self, or paying interest to yourself instead of others) in any manner or form is great, sure. But borrowing is still borrowing. You don’t add the cost of something to your assets even if you pay yourself it, without still factoring in the amount owed. Buying a new but depreciating car in any way shape or form, even if not from a bank will not replace the fact that it has depreciated compared to what has been paid. A beat up car, paid in cash, or driven long through a personal self-loan would beat the math above every time because it is not factoring in that even if you fund through a pri­vate reserve bank­ing strat­egy, you did not factor that most of the money is still replacing the loan; not just adding to assets from the get go.

  3. Jennifer - February 25, 2013

    Watch these short videos to help you grasp this concept. – Thanks for your comment. – video 1 http://ezwp.tv/VRIhJ3O video 2 http://ezwp.tv/VWfHId7 video 3 http://ezwp.tv/VSoIJxo

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