Become Your Own Banker
Imagine getting in line to make a $100,000 deposit at your bank ...
The banker takes your deposit and places it in "your account".
Where does that money go from there? Does it really go into your account? Actually, no. It gets lent out about 7-10 times, but that's a story for a different day.
Let's continue this imaginary scenario...
You get back in line a few hours later and tell your banker you would like to take out $110,000 even though you only put $100,000 into "your account."
Your banker looks back at you with a blank stare as if you're crazy.
You reply, "I've been a loyal customer at this bank for 5 years now, never made a late payment, paid back any loans I've taken. I would like to take out $110,000 on the $100,000 I deposited earlier today."
Blank stare continues.
Your banker then directs you on the steps you can take to get a loan at the bank for that extra amount. You'll likely need a credit check, proof of income, dog's vaccination records, etc. Fun.
Say you come back the next day...
Today, you tell your banker you understand about the $110,000. It was all a simple misunderstanding. “I thought banks rewarded customer loyalty,” you say.
Your banker chuckles and laughs maniacally. You say you would at least like to take out the $100,000 you deposited the day before.
What happens next?
Do they give it to you right away, no questions asked? Or do they ask what you will be using the money for and a few more questions?
Whose money is this $100,000, really?
Yours? Or the bank's?
Now let's explore what happens when you Become Your Own Banker:
You deposit $100,000 into your “bank”, except this time it's actually your bank.
You've been a loyal customer to your bank for 5-6 years.
And every time you put in a dollar, you now get a $1.10 immediately available to you as a reward for your loyalty (AND! With each passing year that return increases).
So you turn around and tell your bank you'd like $110,000 sent to your account tomorrow.
No questions asked, no credit checked, no taxable event created, no dog vaccination records needed. All you have to do is answer two questions:
Where should we send the money?
Which company would you rather bank with?