"The Wealth-Building, Wealth-Preservation Strategy Banks and the Super Wealthy Don't Want You To Know"

Earn Interest in Two Places at Once: Become a Dual Interest Banker!

This strategy has been one of the secrets behind the vast wealth accumulated by families like the Rockefellers, the Disneys, and many others. The best way for us to explain this strategy to you—their strategy—is to tell you a tale of two banks.



The first bank, we’ll call it Bank A. Think of it as your neighborhood fiat bank. You are a customer of Bank A and have $100,000 in savings parked there. Today, you decide to make an investment out on the street, so you withdraw $50,000. Your savings balance is now $50,000.

Unlocking Dual Interest Banking: Maximizing Returns Beyond Tradition Models

Question: will the bank pay interest on the $100,000 you had before the withdrawal or on the $50,000 remaining balance? Correct: the $50,000 balance.

Also, will Bank A pay more or less than 1 percent interest on that $50,000? If you answered less than 1 percent, you’re right again. That’s a paltry sum. And for a neighborhood bank, it’s a sum that doesn’t sound very neighborly. Yet, it’s the kind of banking to which we’ve all grown accustomed.

Now let me tell you about the second bank—Bank B, which is different from Bank A because Bank B is a Dual Interest Bank. Let’s say you again have $100,000 in savings and withdraw $50,000 for the same purpose as in the previous example. But here’s where things get interesting.

Bank B credits you on the full $100,000 AND lets you earn money in your outside $50,000 investment. What’s more, Bank B lets you take returns on average of 7 percent on the full $100,000. This is why Bank B is called a Dual Interest Bank. It allows you to make money in two places at once.

Thanks to Bank B, your entire $100,000 deposit is earning a far better rate than Bank A offered and your $50,000 investment is earning its return out on the street.

Impossible, you say? Watch the video and/or keep reading.

Consider the example of Tom, a 35-year-old crypto investor and trader. It’s his practice to buy small cap tokens with his cash down-payment and trade on leverage. On average, Tom’s crypto portfolio yields a 50% return. 


Thanks to a recent crypto bull market, Tom’s gains now stand at $200,000. Tom decides to smartly transfer out his profits from the crypto exchange and that sum now sits in a conventional bank savings account. It’s not there for the interest (under 1 percent) but for the safety—parking his profits in this traditional account lets Tom not get tempted to trade with his profits which he could lose in a sudden bear market.


Of course, Tom’s not in the least happy about having his capital stagnate in the savings account. However, were he to place his funds within a Dual Interest Bank, he could be having his cake and eating it too. Switching to the Dual Interest Bank, Tom would retain his liquidity, but his money would start really working for him.

Maximizing Your Financial Autonomy: The Dual Interest Bank Strategy

Let me show you how he would do it.


Tom starts his Dual Interest Bank with a deposit of $200,000. A few days later, he finds a crypto token with great 10x upside potential, and he wants to buy it immediately. He needs $100,000 for his position size. So, Tom requests $100,000 from his Dual Interest Bank. Within 24 hours, that amount is deposited into his checking account and Tom proceeds with the purchase. But here’s the thing: the $100,000 Tom receives is not a withdrawal of funds. It’s a loan. As the owner of this Dual Interest Bank, Tom has the power to lend to himself in a flash the money he needs for his investments.



Moreover, as the Dual Interest Bank owner, Tom is also able to set the lending rules. If he wants, he can make a rule that there will be no terms of repayment. As well, he needs no one’s approval to obtain the loan. It’s his money and he can use it as he pleases. This is what it means to “be your own banker,” for Tom’s loan is in actuality a loan to himself. And because of this, Tom is able to open up the possibility of putting his money to work in two places at once.



Naturally, Tom understands that—just like at any bank—he will pay an annualized loan interest rate of 4 percent (4%) on that $100,000. But he also understands that his full $200,000 “inside investment” (the Dual Interest Bank) is making an 8-percent (8%) tax-free return on the “outside investment” (the crypto token acquisition). Net win for Tom.


This new fund-flow process allows Tom to earn extra money on the full $200,000 in addition to the sum generated by his crypto investment—a net 54-percent (54%) return.


So, to put it all together, the crypto investment is producing say Tom’s average crypto returns of 50-percent (50%). This is return on the outside $100,000 loan he took from his Dual Interest Bank (DIB). The $200,000 on the inside which he deposited in his Dual Interest Bank is yielding an 8-percent (8%) return, and the cost of loaning the money for the outside crypto investment is 4 percent (4%) —meaning, his total combined ROI is (50% + 8% – 4%) = 54%.


Now let’s say Tom is lazy and doesn’t want to do any crypto investment, trading or any other business. Then, he could simply take the $100,000 he loaned himself from his Dual Interest Bank and loan it to BananaCrystal where he would earn 8% for doing nothing.


So in this scenario, Tom’s return on the outside $100,000 loan he took from his Dual Interest Bank and loaned to BananaCrystal is 8%. The $200,000 on the inside which he deposited in his Dual Interest Bank is yielding an 8-percent (8%) return, and the cost of loaning the money for the outside crypto investment is 4 percent (4%) —meaning, his total combined ROI is (8% + 8% – 4%) = 12%.


Wow! Yes, we know. This is the secret the wealthy use to make money without all the hassles. This is what they don’t want you to know but now you Know.


Note: This is a hypothetical illustration and not investment advice or a solicitation to you or anyone.

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Maximizing Your Financial Autonomy: The Dual Interest Bank Strategy

(your icing on the cake!)


  • Tax Free Income


  • Speedy Access to Cash for Investing, Funds-on-Demand for Running your Business, or even Cost of Living Needs


  • Protection of Wealth During Personal Health Crises


  • Tax Free Transfer of Wealth to Estate/Beneficiaries – Creating a Family Bank


  • No Cap on Loan Size or Frequency


  • Market Like Gains without the Market Risk


  • Minimum Guaranteed Returns that Hedge Against Inflation


  • Exclusive Tax Benefits for US Citizens, Resident Aliens, Foreign Citizens and Non-Resident Aliens


  • Anonymity from the IRS and Creditors and Predators!


  • A College Savings Vehicle for the Children of Today

Tax Free Income

About Tax Free Income


  • The biggest ‘Unknown’ in a retirement planning strategy is what will my tax burden look like? How do I know that we’ve saved enough if we don’t know how much will go to taxes? Not to mention most of us in the United States save money in pre-tax vehicles such as IRA’s and 401(k)’s that will be taxable upon distribution. Meaning that pulling from these pre-tax accounts could mean an additional 20-40% savings needed just to plan for that eventuality. So how does someone take control of that ‘Unknown’ factor, seeing as we are not in control of what taxes will be in the future? Quite simply by not putting ‘All of our Eggs’ in one tax basket. The Dual Interest Bank is an account that you put post-tax dollars into and the money will grow tax-deferred and eventually distribute ‘tax-free’ similar to a Roth IRA, but without any of the Internal Revenue Services (IRS) tax restrictions. So essentially, by doing so you have now created a tax-free bucket of money that can dilute down your taxable income in retirement years. Thus depending on the tax environment at the time whether taxes are higher or lower, any given year you can take control of your tax rate by pulling money from either your tax-free or taxable bucket or a combination of both!


  • Arguably the IRS is one of the biggest most profitable businesses in the United States. So, why is it that they encourage Americans to save so fervently on a pre-tax basis. Fundamentally, they know that if they forgive the tax on the ‘Seed’, your contributions, they will be able to reap the ‘Harvest’, your contributions plus decades of growth! Let’s put some numbers to the logic and see! Mary has a 401(k) at work and she contributions 10% of her salary to that plan every year. Her employer matches at 5% so between the tax savings and the matching feels she is doing all of the right things to be prepared to retire. Over a 35 year career Mary has contributed approximately $311,380 and her employer has matched approximately $155,690, her 401(k) grew on average at a 7.00% return year over year for a total balance of $1,529,580. So now, at retirement when she takes money out of her plan over the next 20 years she will pay tax on a ‘Harvest’ of approximately $1.5M for a savings on taxes during her working years on $311,380, the ‘Seed’. No wonder the IRS encourages American’s to save pre-tax!

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Speedy Access to Cash for Investing, Funds-on-Demand for Running your Business, or even Cost of Living Needs

About Speedy Access to Cash with Dual Interest Banking



  • A common objection to using Life Insurance as a savings vehicle is the lack of liquidity in the early years of the plan. Most examples of cash value life insurance that you’ve seen likely show a ‘break even point’ at years 12-15. Where a savvy investor might say that’s too much wasted opportunity cost to tie up money for that long. Well as a fiduciary in this industry, I’m here to tell you a secret that most Agents wouldn’t want you to know. If a plan has very little liquidity up front, that means there is a heavy surrender charge on that plan, putting you in ‘Golden Handcuffs’, in turn that surrender schedule is used to pay a heavy commission to the Agent. It’s important to remember there are three parties in an insurance transaction, the Insurance Company, the Agent, and the Client and the Agent can most certainly get in the way of the Client making money if the plan isn’t designed in their favor!


  • The Dual Interest Bank (DIB) is designed with the Client’s benefit in mind 100%, which is why users of the DIB strategy enjoy the benefits of immediate liquidity. Let’s take a look at Allen, a 37-year-old business owner. Allen has a successful commercial lawn care business, where he can have new equipment needs literally overnight. Currently, Allen keeps $50k in a Bank savings account expressly for that need. Allen loves the idea of the DIB because he’s not the least bit happy about having his capital stagnate in the savings account earning less than a paltry 1%. Allen starts his Dual Interest Bank with a deposit of $50,000. A few days later, a new employee doesn’t secure a piece of equipment properly and one of his mower’s falls off the trailer and has to be replaced. He needs $10,000 to replace the critical piece of equipment. So, Tom requests $10,000 from his Dual Interest Bank. Within 24 hours, that amount is deposited into his checking account and Allen proceeds with the purchase! Now, not only has Allen avoided a wasted opportunity with stagnant capital on the books, he’s also earning money in two places at once supporting his business with critical equipment needs!

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Protection of Wealth During Personal Health Crises

About Protection of Wealth During Personal Health Crises


  • In a recent poll, 45% of US adults are concerned that a major health event could lead to bankruptcy. Moreover, an estimated $126 billion was pulled from long term savings to pay for health care related expenses in the last 12 months. Portfolio protection from a medical event is more important than ever with the rising costs of healthcare related expenses. Since the Dual Interest Bank (DIB) uses permanent cash value Life Insurance as its investment vehicle there are intrinsic benefits that add a significant layer of protection. Specifically, not only in the form of a Death Benefit, but also in the form of Living Benefits that protect families from terminal illness, critical illness and injury, as well as chronic illness. These riders come at no additional cost to the plan thus avoiding a use it or lose it insurance situation. Let’s take a moment to define what that looks like:
  • Beth is a 48 year old Dentist. She owns her own dental practice and was recently diagnosed with breast cancer. Fortunately, due to advancements in treatment Beth has an 87% chance of survival but the treatment will be extensive and require 12 months away from her practice. Beth fortunately has a DIB she put in place 8 months ago as a cash flow tool for her business. She reported the medical event to the insurance company and will be advanced $768k tax free to use not only for medical expenses but also for any needs for her personal finances and business as well. Specifically, the insurance company doesn’t monitor the dollar for dollar use of the money, they just advance a lump sum to Beth to use the money for what she needs. Due to the protection of her DIB, Beth was able to pay a Dentist to run her practice for her for a year while she recovered, avoid taking on any medical debt, and take care of all her personal expenses. After 12 months Beth returned to a thriving Dental practice and avoided having to dismantle what she worked so hard to build due to a personal health crisis.

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Tax Free Transfer of Wealth to Estate/Beneficiaries – Creating a Family Bank

About Tax Free Transfer of Wealth to Estate/Beneficiaries – Creating a Family Bank


    • In today’s climate there is a lot of uncertainty about passing on wealth to the next generation and how that money will be taxed. Realistically, we know every four to eight years in this country that could likely be subject to a change. So, how do we take control of the volatility around this tax code to protect money from taxation to successive generations. Let’s take a look at how the Rockefellers did it and many other estate conscious families do today. John D Rockefeller understood the danger of passing on his wealth to successive generations without intention. Likely not a term in his day, but to avoid creating ‘trust fund babies’ that could quickly squander wealth without living a life of purpose. Mr. Rockefeller envisioned a way to give successive generations a leg up for educational pursuits, entrepreneurial endeavors and freedom from the financial bondage the IRS and big Banks can impose. Specifically, by marrying up two of the oldest financial constructs in this country the Rockefeller’s fortune still thrives today, a well-designed Family Trust and cash value insurance (i.e. a Dual Interest Bank). Since the inception of Life Insurance which predates the creation of the IRS and is likely the reason the rules that protect how Life Insurance is governed stand undisturbed today is it’s tax free nature. The ability for money to grow tax deferred and distribute tax free as well as the tax-free nature of the death benefit. So if the Trust is the component that governs how the money can be used by successive generations the cash value Life Insurance is the vehicle that protects the transfer of wealth from Uncle Sam.


  • Regardless of the size of a Family Estate, we’ve found that most families share similar core principles about leaving wealth to successive generations.


I. How to help without enabling, and in turn empowering the pursuit of education, entrepreneurship, and philanthropy.
II. Can my legacy be preserved from the risk of changes in the political environment from Uncle Sam?
II. Remove the burdens that Banks and the IRS impose and teach successive generations how to Bank on themselves.
IV. The Dual Interest Bank will be a critical component of showing successive generations how to eliminate reliance on Banks that pay atrocious returns, have restrictive and rigid lending practices, and high interest lending rates.
The Dual Interest Bank will be a critical component of showing successive generations  how to eliminate reliance on Banks that pay atrocious returns, have restrictive and rigid lending practices, and high interest lending rates.


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No Cap on Loan Size or Frequency

No Cap on Loan Size or Frequency


    • One of the biggest unintended consequences of you saving a majority of your money in 401(k)’s and IRA’s is the lack of liquidity, high risk of penalty, and forfeiture of the ability to invest in anything but marketable securities. How many of us can honestly say that we have at times had to consider taking money out of a 401(k) or IRA to make ends meet or pay for an unintended expense. I think most of us can agree we have been in that position before, so maybe instead we turn to a credit card, short term high interest payday loan, or end up paying the high penalty and taxes to access our own savings. With the Dual Interest Bank, the fear of needing to access your own savings without having to accept the penalty that comes along with that decision will be eliminated. With a Dual Interest Bank comes the empowerment to use your money on your terms. There is no cap on loan size or frequency, nor will you need to qualify for the loan in any way. Why should you? It is your own savings after all
  • Mark is a 57 year old union worker at a steel fabrication company, he has been a technical services engineer there for 25 years. His goal is to retire at Age 64 when all of his benefits will be fully vested. Mark has been a diligent saver in his 401(k) and has about $397k saved, he is in a conservative target retirement fund mostly vested in bonds returning about 5.00% annually. Mark went through 2008 and being within a few years of retirement doesn’t like the idea of exposing his money to market risk, but also knows being in cash has its own risks as well. Recently his wife Joy has become a student of Real Estate, she has taken several classes tailored to teach new investors, obtained her real estate license, and joined up with a mentor to help her on her first deal, a fix and flip! Mark wants to diversify away from his 401(k) at work to help Joy fund her first project that has a projected ROI of 27%. So, he takes a maximum loan on his 401(k) of $50k (the IRS allowable limit since the $50k doesn’t exceed 50% of his account balance) but will have to pay the loan back per the guidelines of his company through his bi-weekly paychecks, won’t be able to take another loan of that size for a year, and of course stop earning the 5% on the underlying investment. Joy’s first fix and flip is a success, they earn a 32% return on their investment and are able to repay Mark’s 401(k) loan and pocket the difference! However, now Mark and Joy, regardless of any new opportunities that come up, are paralyzed on funding for a year and on the size of the deal they can do. Whereas, with the Dual Interest Bank, Mark and Joy using the same scenario could be:
I. Taking loans as frequently and at any size needed for Real Estate opportunities that arise.
II. Still earn a steady risk free rate of return on the account balance, even the portion loaned against the plan for the external real estate investment! The sweet spot of the Dual Interest Bank!
II. Dictate their own repayment terms on the principal and interest.
IV. Have access to invest in any type of assets, not just those that are market based such as real estate, precious metals, etc.
One of the most neglected factors of personal finance in my experience is opportunity cost. The Dual Interest Bank is by far the best savings strategy to avoid the mistake of missed opportunities.

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Market Like Gains without the Market Risk

About Market Like Gains without the Market Risk


  • For many, investing in the stock market can be very intimidating and not something they feel comfortable managing on their own. Furthermore, trusting Advisors that just say to ride the highs and lows of Market, doesn’t seem quite right either. So where can we turn to if it seems the only options are marketable securities with uncertainty and risk or Bank’s that have egregious rates of return that are clearly not outpacing inflation. That is where many have turned to the predictability in the returns of Life Insurance companies that operate as mutual companies versus stock companies. A mutual company has an obligation to act in the best interest of its policyholders in how they are regulated at a state and national level. Most advantageously in the way a mutual Life Insurance company will share in the returns of their general funds with the policy holders versus the stockholders. Needless to say Banks are pro stockholder companies that do not share in their profits with account holders. For years they have invested account holders capital without even sharing in their returns at a nominal rate.


  • So how exactly do Life Insurance companies credit policy holders’ returns? How does my Dual Interest Bank make money? Life Insurance companies are strictly regulated at the national and state level on how they can invest their general funds. A very small percentage will be invested in the stock market (typically less than 5% overall) as it is too cyclical and unpredictable for insurance companies. A majority of their investing is in investment grade bonds, government securities, and real estate equity and debt that have far more predictable returns. Insurance companies will either pass on their earnings to their policyholders via a dividend rate or interest rate return depending on the type of plan that is most suitable for you. In today’s interest rate environment dividends are paying roughly a 5-6% return and interest rates are paying around 7-10%. Most importantly these rates will move with inflation as that increases over time and an insurance company will never pass on a negative credit to a policyholder. Thus a policyholder’s ability to participate in market-like gains without the market like risk. A Dual Interest Bank can play a stable role in your overall portfolio with steady performance sensitive to inflation and void of risk.

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Minimum Guaranteed Returns that Hedge Against Inflation

About Minimum Guaranteed Returns that Hedge Against Inflation


  • Inflation, inflation, inflation, it seems to be the looming thought on everyone’s mind as we are likely at the end of a several year run of some of the lowest lending rates we’ve seen in this country’s history. However, with inflation also comes added opportunity with coordinated and intentional planning in place. Many likely have heard Parents or GrandParents say, I miss the days when the Bank was paying me 10% returns on my savings account. That being said, they also recall those were the days of 15% mortgage interest rates as well. Albeit, not to imply that we will see that level of inflation likely again, nor will we see Banks who are too controlled by stockholders in today’s economy create that type of scenario again. It does illustrate a point that when lending rates rise so do the returns of the fixed instruments that Insurance Companies are strictly regulated to invest in almost exclusively (i.e. investment grade bonds, government securities, and real estate equity and debt). Thus the benefit of a Dual Interest Bank is that of its ability to be highly sensitive to inflation and create a pillar within your overall portfolio that can stand the test of cyclical inflation..


  • A properly designed Dual Interest Bank can offer a fixed interest rate account or a minimum guaranteed dividend return. Which essentially acts as a ‘minimum floor’ to your annual returns. Fortunately, these fixed accounts will be sensitive to inflation as that will always be a moving target in any plan. Philip, a 36 year old business owner, opened a hair salon with his Fiancé. He started to explore putting stagnant business capital into a cash value insurance plan. Philip has a friend that sells life insurance, although his friend was new to the industry, decided to start there. Philip, was pleasantly surprised, when he was presented with a plan that would have a 4% return guaranteed for a lifetime, never more never less. Thankfully, Philip did not stop there and started reading about the fundamentals of a Dual Interest Bank. He quickly realized that although a 4% return is certainly more attractive today than the nominal interest rate he makes with his local credit union, it may not be attractive for a lifetime of cyclical interest. In any plan but especially with a Dual Interest Bank it is important to consult an advisor that understands to plan for the long term growth of the account to hedge against unpredictability in inflation.

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Exclusive Tax Benefits for US Citizens, Resident Aliens, Foreign Citizens and Non-Resident Aliens

About Exclusive Tax Benefits for US Citizens, Resident Aliens, Foreign Citizens and Non-Resident Aliens


  • Clearly the tax benefits of using Life Insurance for United States Citizens is evident and has been used dating back to the year 1759 when the first life insurance company was formed.


  • However, many are unaware of how those benefits can extend as well to Resident and Non-Resident Aliens. More so than ever with access to international student visas, an interest to own assets globally, or own a residence in more than one country comes the need to understand how to mitigate the complexity of an international tax picture. More times than not that can include a diversification to the United States. For those seeking diversification in US currency, the US political climate, and asset diversification into US based real estate and businesses. Let’s take a moment to compare current Non Resident Alien and Resident Alien tax benefits and the major reason either of these populations that own assets in the US need to consider life insurance. For Non Resident Aliens and Citizens of other countries even though taxes are limited to US based assets only a very small exemption of $60k is available any estate value above $60k will be taxed at very high rates. Also, depending on tax treaties a potential for double taxation could exist. For Resident Aliens, US transfer tax exemptions are the same as US citizens. However, global assets are considered taxable and there is no portability or unlimited marital deductions to spouses who are not US citizens. Clearly leaving estates open to significant tax that the implementation of a Dual Interest Bank can solve.


  • William Chen a Non-Resident Alien, age 48, is a Chinese citizen whose Son is studying at Cornell university with the likelihood of staying in the states permanently as he nears graduation and receives a great job offer. Mr. Chen decides to expand his business to the US as well as purchase a business property and a personal home. In order to be close to his Son and future Grandchildren when he desires to visit. In doing so Mr. Chen’s now has an estate value in the US of $1.23M and with only a $60k exemption upon Mr. Chen’s passing would create a tax liability for the estate of $468,000! At a 40% estate tax rate. However, with the implementation of a Dual Interest Bank, Mr. Chen can implement protection in the form of an equivalent Death Benefit which will also be excluded from his taxable estate.


  • Sonia Martinez, a Resident-Alien, age 49 is a Mexican citizen. She owns a ranch outside El Paso TX in the US worth $3.2M. Her global assets are worth an estimated $27M. Thus when she passes away, even though only $3.2M of her global net worth is in the US because she is a Resident Alien the global estate will be considered taxable. Sonia, will qualify for the $11.7M exemption but even at that with a 40% estate tax rate her family would be left with a $6.12M tax bill! Fortunately, after consulting with an experienced professional, Sonia implements a Dual Interest Bank to protect her global estate with an equivalent Death Benefit, but also to cover her liquidity needs as they arise and generate some tax free income for her Estate.

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Anonymity from the IRS and Creditors and Predators!

About Anonymity from the IRS and Creditors and Predators!


  • Most of the politicians on Capitol Hill in D.C. have Dual Interest Banks. That’s why you rarely hear the topic brought up. They know it as one of the best ways to transfer wealth and keep it tax-free—and they’re not about to call attention to it, otherwise political pressure might mount for them to alter the status quo. And that’s a good thing because all of the earnings that go into a Dual Interest Bank grow tax-free into a cash-value balance which you can use for whatever you want, tax-free. The cash-value balance is an asset for you and your beneficiary; there is no step-up basis or red-tape around this money earmarked for transfer to the next generation. With a properly planned and set up Dual Interest Bank, you can seamlessly transition money from Generation 1 to Generation 2 to Generation 3 and, possibly, to Generation 4 all within your lifetime. Imagine the legacy that you could leave for your family, having beaten the IRS at its own game.


  • Often an overlooked benefit of cash value life insurance is the asset protection it provides against creditor claims and debtors in a bankruptcy. For business owners this can be especially important, to protect one from the financial loss of the business, economic downturn, lawsuits from customers or clients, employee fraud, or default of customer accounts. However, realistically for any family the idea of having a portion of the Estate protected from the unknown can bring peace of mind by being a good steward of asset protection. These protections vary state by state but do offer protection in nearly every state in the US. Which is why not only is a Dual Interest Bank a way to make your money work smarter and in a tax efficient manner, but also a great diversification for asset protection.

A College Savings Vehicle for the Children of Today


  • One of the most dramatic shifts of sentiment in today’s young adults is their sentiment towards the importance of attending college. In recent years, where 73% of young adults saw college as a very important step to take, now only about 41% see college in the same light. However, parents are saving money in tax advantaged college savings vehicles more than ever before. So where is the disconnect? Many Americans may believe that a plan such as a 529 is the only way to save money for their Children’s future in a tax advantaged way. Combined with the fact that young adults are paving new ways to financial freedom away from the traditional construct of college. So how would a Dual Interest Bank create a more functional, tax advantaged savings vehicle for today’s youth? Without the risk of penalty and tax for their parents if that money doesn’t end up being used for higher education. Well first and foremost, the money in a Dual Interest Bank can be used for any expense not just that of education. In addition, life insurance is not included as a reportable asset to FAFSA whereas vehicles such as a 529 plan are. So, if your Child does decide to go to college, you won’t be penalized by limiting your family’s access to student loans for saving money in a reportable asset.


  • Say hello to Dean and Linda Robinson. They have four children—teens and young adults—and operate a family business. The Robinsons taught their kids about business by having them participate in the family enterprise beginning at an early age. Dean wants to create a safe savings vehicle for the children to compensate them for their contributions to the success of the business but doesn’t want the money to only be accessible for school expenses or potentially not at all until they reach retirement age. One possible solution would be to put the money in a conventional bank savings account. But with so little return, Dean is right to want to explore how Dual Interest Banking could provide a better solution. He likes what he learns, enough so that he starts a Dual Interest Bank. Going forward, he pays each of his children $12,000 annually. So that they avoid owing income tax on this yearly sum, he doesn’t pay them directly but instead deposits their earnings into the Dual Interest Bank. Dean does this for 10 consecutive years, at the end of which he has a fully funded Dual Interest Bank—fully funded for a lifetime, no less. How does that benefit his kids? Throughout their lifetime, they can rely on the Dual Interest Bank to fund college expenses, start a business, pay for the purchase of a vehicle, or provide a down payment on a new home. The children can do this and, as they do, they will learn the value of loaning from their own bank and paying themselves back on their own terms. All the while, nothing the children do will disturb the underlying growth of the plan. It’s growing over time to create a tax-free retirement income for them. Specifically, for Dean’s youngest son—15-year-old Sam—at age 60 he’ll be able to start taking a $103,000 tax-free income! Not only has Dean set his kids up for success, but he’s also positioning his future grandchildren for the same. So when Sam grows up, grows old, and eventually passes away, Sam’s kids—Dean’s grand babies—will receive a significant, tax-free death benefit.

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