How Banks Really Make Money

In this video from a public presentation, Todd Langford tells some fascinating stories about banking! Learn about the triple-digit profits banks rake in from leveraging “other people’s money.” (And we don’t even get into fractional banking, which really drives home how much risk banks took on to create the Financial Crisis!)

As Todd demonstrates with rate calculators, people tend to think that borrowing at 5% and lending at 10% is only 5%. Yet it is actually a 100% gain!

Now consider… do YOU have money that you can leverage and put to work? (Hint: you must be able to borrow against the asset!)

What we like about borrowing money against a life insurance policy or other assets is that your cash value will still grow (guaranteed), and the other asset used for collateral may still appreciate (depending on the asset or the market… never rely on appreciation, only guaranteed growth).

For more on this concept, read “The Power of Leverage.”

Note: Risk must be considered in such strategies. Never borrow against an asset to invest in the stock market or anything else with an undetermined rate of return or a reasonable risk of losing principle.

How might you benefit from leverage?

Contact us for recommendations for your situation, or to start saving in an asset you can easily borrow against if desired.