How to Bank On Yourself and Get Back the Interest You Pay to Lease or Finance Business Equipment

Published: 20th March 2007
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What if there was a simple way to bank on yourself and become your OWN source of financing for the business equipment you buy or lease?

You'd make the same profits that banks and leasing companies 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 cost of the vehicles, equipment, machinery, electronics and buildings you buy or lease for your business?

Impossible, you say?

Oh, but it's not! In fact, over the last five years, I've gotten the last three cars I use for my business for free. PLUS I've put all the interest charges I previously paid to finance and leasing companies for cars into my OWN pocket, instead!

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 strategy which almost any business owner or professional can use to turn the flow of money in your business and personal life from cash OUT to cash IN. I'll use the cars (or trucks) you buy or lease for your business 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 ' business or personal ' 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 bank on yourself and become your own source of financing for your business equipment, 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. You want to own the policy as an individual and buy the car as an individual, and then lease it to your business. (Consult a qualified tax and accounting professional first.)

Of course, this 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, as you know, any business has a "start-up" phase. It's a one-time requirement that pays a lifetime of benefits.

2. Your business then begins making lease payments to you, with interest, just as the business would be required to do if it had borrowed the money from an outside lender. You then repay the loan, plus interest, to your policy.

Key Concept: The interest you pay 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. And your business continues to get tax deductions for interest and depreciation.

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!

And remember, you can use this strategy for ANY business equipment, not just cars, as well as for big-ticket personal items, such as vacations, a home theatre, home remodeling, college educations, etc.

In addition to the three cars we've already gotten for free, my husband and I 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.

There are many additional 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 locked in!

* You'll create a tax-free income you can access when and how you want, according to current tax laws (with NO government limits on how much you can put in or take out each year)

* 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!

Tip #1: You'll report the lease payments you receive from your business on your tax return, but a good CPA can show you how to structure this properly (and make sure your business entity qualifies), so it could potentially be a wash transaction.

Tip #2: Be sure to also 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! (' 2007 Pamela Yellen)


As a consultant to financial advisors since 1990, Pamela Yellen investigated 450 financial strategies searching for the most consistent, risk-free ways to grow wealth. She is the author of the Report, "Bank On Yourself: How to Pocket the Interest You Pay to Financial Institutions and Get Back the ENTIRE Purchase Price of Big-Ticket Items." Get a FREE copy of the Report by using the passcode BOY4 at:

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