Mechanics of The Millennial Banking System


Ever noticed how you can make money from almost anything? Standing in line for someone, buying someone’s groceries and delivering it to them, driving Pokemon Go players around. People will find anything to profit from.

Do you know anyone who is profiting from their bills? I would guess that you don’t.

If you take a look at how the banking system works you’ll see that we can easily do what they’re doing, but in a safer way.

In the following diagram, notice how the bank takes your money, lends it and charges the borrower 9%(1)while only giving you 0.2%(2), allowing them to profit 8.8% from YOUR money.
What happens is we only use the bank to store our money, to keep it “safe”, when in reality, our money is being put at risk in the stock market by the bank.


They obviously don’t have us in mind; their only concern is to profit for themselves. So what if we tried a different approach? With this strategy, the bank will remain in the picture but only to store our money while it goes elsewhere, not to keep it there.

In the following diagram, you will be able to see that instead of keeping your money in the bank, you will move it to the Accumulated Value account(Shifted Account) in your life policy where it will grow by either a fixed interest rate, or rates based on the changes in a major market index like the S&P 500(historical average of 9.7%(3)). Regardless of which option you choose, your money will not be affected by drops in the market. You will then borrow out the amount of money you need for monthly expenses(~75%) from the pockets of the insurance company at 5% simple interest, not from your own money.

Foy example, youbhave a $2,000 monthly income. You divert that into the Accumulative Value account and If you pay $1,500 in monthly expenses, that’s 75% of your monthly income.


Remember, the percentage you can borrow out is determined by the amount of money in the Shifted account, but not withdrawn. I went a little conservative on the gained interest at 8% and withdrawal amount at 75%, which can be higher in some cases. A payee is the company you pay each month for services or debt like rent, insurance, student loan, or netflix.

This kind of interest crediting strategy allows you to take advantage of changes in the market index without the risk of market losses(4).

Once you know you’re not losing money by paying bills directly, you may not feel too bad about having expenses. Whether you want to pay rent, buy a car, pay for a vacation, enroll in college, or even pay for Netflix, you’ll know that those expenses will be earning compound interest, working for YOU and your future needs.


-Consult with a licensed agent for evaluation on your personal or business finances.

-This article contains general information about financial preparation. This information is for educational purposes only.

  1. For example, if you receive a $6,000 36-month loan at an interest rate of 6.97% with a 3.5% origination fee of $210.00, you’ll receive a loan amount of $5,790.00 and will make 36 monthly payments of approximately $185.18 at an 9.39% APR.

In the case of a $20,000 60-month loan at an interest rate of 7.39% with a 5% origination fee of $1000.00, you’ll receive a loan amount of $19,000.00 and will make 60 monthly payments of approximately $399.71 at an 9.57% APR.

  1. According to a GOBankingRates analysis of checking account rates from thousands of banks and credit unions throughout the U.S., the average checking account earned 0.17 percent APY last year(2014).

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