What is the Private Reserve Strategy?

What are the Debtor, Saver,and Wealth Creator differences for BORROWING?

A Debtor: works to spend, Borrows from a lender at the highest market rates, using future earning potential as collateral. A Saver: saves to avoid paying interest-Borrows from self, reducing current collateral position and resets compounding. Human Nature. A Weath Creator: Saves and uses OPM to maximize efficency- Borrows from lender at negotiated rates, using own money as collateral and continues to earn uninteruted componding.

What are the Debtor, Saver,and Wealth Creator differences for PAYING?

A Debtor: works to spend, Makes Payments to the lender at the highest market rates. A Saver: saves to avoid paying interest-Makes payments to self to get back to where they were before the purchase, giving up interest their money would have earned. A Weath Creator: Saves and uses OPM to maximize efficency- Makes payments to chosen lender, allowing own money to earn uninterupted compound interest, maximizing the benefits of their Private Reserve Account.

What are the Debtor, Saver, and Wealth Creator differences for BUYING

A Debtor: works to spend, No savings/ Earns no interest/Pays interest. A Saver: saves to avoid paying interest-Saves/Earns interest/Pays cash. A Weath Creator: Saves and uses OPM to maximize efficency- Saves/Compound interest/ Collateralizes purchases

What are the three types of wealth transfers?

Protection, Expenses and Taxes...

Which accounts can be used best for the Private Reserve Stategy?

Savings accounts Money Market CD's 401K's Margin accounts HELOC Credit Unions Car Maufactuer Government Loans Signature Loans I.O.U's Perminent Life Insurance

What other key advantage does the Private Reserve Account have?

Tax deferred and tax free use of the money through collaterrilized loans with no scheduled pay backs

What are some of the Characteristics and Benefits of the Private Reserve Account?

Tax deferred growth-Tax free distribution-Competitive return-High contributions-Deductible contributions-Collateral opportunities-Safe harbor-No loss provisions-Guaranteed loan option- Unstructure loan payments- Liquity Use and Control

What key point makes this account different than most accounts?

The account is accessible through collaterilization at all times.

What is Collateral Capacity?

The amount you have in your Private Reserve account that can be collateralized.

What is the primary focus for using the Private Reserve Strategy ?

To help avoid or minimize unnecessary wealth transfers where possible and accumulate an increasing pool of capital.

Why should you consider not paying cash?

What if you could make the purchase without "emptying the tank?" This would allow your private reserve to continue to emply the benefits of compounding.

What are the problems with paying cash?

When paying cash you need to first save cash. You have annual tax leakage. Then you have to drain the tank to make your purchase.

If you don't use your capital then who's do you use?

You collateralize a loan from a financial institution, securing a loan by pledging a portion of your private reserve.

What are wealth transfers?

You finance everything you buy. You either pay interest, or you give up the ability to earn interest. Every dollar not saved is consumed by transfers and lifestyle.

What must you consider before any capital outlay?

You must consider the cost and the opportunity cost. It's not just what you pay its how you pay for it.