Private Banking is just the use of a trust and a whole life insurance policy together to create a private institution that acts as a lender. The lender (trust) holds the depositor’s money (yours) and invests it into a vehicle (whole life policy) guaranteed 4% to 5% annual dividends with the ability to lend up to 100% of the deposit back to you. You literally borrow from your own bank, while earning dividends that grow and diversify your financial portfolio.
Yes, we've heard the speech before: "Dave Ramsey says mutually
owned insurance gives a 4% to 5% dividend, but one must overpay their premiums and in reality the company is just giving that money back."
Yes, that is all correct! And none can deny that life insurance is a smart investment to have. And if we do this, why not hold money within this funding account just yielding 4-5% interest compared to a bank account's 0.01% interest. Given that these whole life dividends have been paid for 200+ years without cease (compare that to all our history's 'bank runs') and which would
any logical investor prefer?
And yes, we've heard: "Dave Ramsey says that ‘mutually owned’ means the policy holders own in a stake in the company."
Again, that is succinctly correct! That's why choosing the
right firm that has lasted for 200+ years, like the ones we recommend, that
have been paying out dividends during world wars and pandemics - makes one feel as safe as if banking with a trusted name.
It's not investment, it's 4% to 5% dividends on liquid funds with the ability to borrow against the policy up to 100%. People use this strategy when they have liquid money that needs to outpace inflation - guaranteed! When using these funds as a source of cash to leverage - a whole life policy is the best option.