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What is Banking on Yourself? | Mike Butean

Updated: Feb 23


In this article, I will talk about what is Banking on Yourself


Let’s clear first what is not Banking on Yourself?


This is not the meaning that I need to open a bank myself or that I bet on myself.


Since when was this strategy used?


Yes, it is a strategy and was used since 1900 in North America and most of the families were using it successfully but then it got kind of out of fashion with all the new financial instruments, like mutual funds, trading on the stock market, RRSP, TFSA, and others, came on board. But believe it or not the wealthy people and the banks are still using it. US banks have at least 30% of their assets invested using BOY strategy. Canadian banks do not need to reveal this kind of information publicly, while it could be a similar case.


Do we have examples of famous people using it?

1929, J.C. Penney – James Cash Penney used the BOY policies to meet the payroll and day-to-day expenses of his department store, JCPenney. This allowed the company to ultimately rebound from the Great Depression.

1939, Foster Farms – Max and Verda Foster borrowed $1,000 against the BOY policy to invest in an 80-acre chicken farm. Today Foster Farms’ products are sold all over the world.

1955, Disneyland – Unable to secure a large enough bank loan, Walt Disney borrowed against the BOY policy to help finance the creation of his new theme park, Disneyland. Today, The Walt Disney Company has an annual revenue of nearly $70 billion.

1961, McDonald's – When Ray Kroc bought out his partners (the McDonald brothers) he used the BOY policies to cover the salaries of key employees. He also used the funds to pay for the marketing campaign for his new mascot, Ronald McDonald. The franchise has since grown to over 37,000 stores in over 100 countries.

1980, Pampered Chef – Doris Christopher used a policy loan of $3,000 to start her new kitchenware company. The company was later purchased by Warren Buffet’s Berkshire Hathaway for $1.5 Billion


What is Banking on Yourself?


  • Is a strategy used to structure a whole life insurance policy.

  • Is designed to supercharge growth and build wealth.

  • Is a plan that eliminates unnecessary risk and provides guaranteed returns

  • Uses dividend-paying whole life insurance as a savings vehicle.

  • Features a cash value that builds equity and is an asset you own & control.

  • Creates generational wealth building


If you are interested to find out more, please use:

http://findoutmorenow.ca/ and use the code MB10

Or contact me directly at

647-569-3799

mike@macdevfinancial.com

www.mikebutean.com


1-647-569-3799

1-800-289-8158

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