Dynasty Wealth Partners
Our TSP Business Directory featured mention of the week is Dynasty Wealth Partners. They are an authorized Infinite Banking Practitioner. Dynasty Wealth can help create multi-generational wealth. Their strategies show you how to keep more of your money, have more control over your finances, pay less taxes and build more wealth for now and for the future.
Dynasty Wealth has three websites to advise you on specific needs. They are Dynasty Banking, College Savings Plus and Business without Banks. Each of these areas of expertise will appeal to those that are interested in learning more about those topics. They have an excellent blog that features posts to enlighten you to wealth preservation and debt elimination.
The Definition of Banking
Michael has a wealth or resources on his site about the Infinite Banking Concept, if you are interested in learning more. You can check out his blog here, but I wanted to share a particularly interesting section from his site:
“Banking, banks, savings and loans, credit union etc. Do the commercial banks own these words? Think about the word – Bank. What does that mean? You see we have blood banks, memory banks, snow banks etc. A bank can also mean a slope that goes to a body of water, like a river bank.
Commercial bankers do not own the word bank. What we would like for you to understand today that banking is a function. Banking in the sense of money is an action where someone deposits money into a pool, that which can then be loaned out to generate revenue.
In modern times customers of a bank or credit union deposit their money (which is actually a liability on the banks balance sheet). Then through the use of fractional reserve lending the bank can create loans based off of the allowable fraction determined by the central bank. This is approximately around 3% of deposits to the commercial bank.
Reserve requirements are the amount of funds that a depository institution must hold in reserve against specified deposit liabilities. Within limits specified by law, the Board of Governors has sole authority over changes in reserve requirements. Depository institutions must hold reserves in the form of vault cash or deposits with Federal Reserve Banks. (source: www.federalreserve.gov/monetarypolicy/reservereq.htm )
In the United States, a reserve requirement(or liquidity ratio) is a minimum value, set by the Board of Governors of the Federal Reserve System, of the ratio of required reserves to some category of deposits held at depository institutions (e.g., commercial bank including US branch of a foreign bank, savings and loan association, savings bank, credit union). The only deposit categories currently subject to reserve requirements are net transactions accounts, mainly checking accounts. (source: Wikipedia )
Your deposits into your current bank account go on to become loans for your friends, neighbors, and even yourself. Most people think that banks earn the difference of what they pay you in interest and what they charge in interest on loans. This is only partially true. Because of the fractional reserve system banks can earn hundreds of percent based off one deposit.
I explained all this so that you will know that banking is a function and not a place downtown with a large nice building where people in suits go to work everyday called a Bank.
Once you understand the Banking function you can then go on to learn how you can take advantage of “Becoming Your Own Banker”. Meaning, you create a pool of money that builds over time, then when you need access to money you can get said money. When created properly you will have more control, you will be able to capture the interest that is normally going to the commercial banks as profits which in turns gives you even more money in the future.”
Thanks to Dynasty Wealth and all the TSP Directory Businesses
Be sure to check out Dynasty Wealth Partners and the other outstanding businesses right here in the TSP community. Remember to support small business when you can. Shop local and shop within our online community here at TSP. Next week, I will be writing on Fluid Depiction LLC. They are an IT contract and Web Development company right out of the TSP audience. Be sure to check it out.
If you haven’t already listed your business here on the TSP site, you can get started today for less than $1 a month. Build resiliency into your life by becoming your own boss. As we approach the end of 2016, think about opportunities around you, and seriously consider the entrepreneurial path. The only thing stopping you is yourself!