Capital Funding

Easement proceeds will fund your captive bank

You can use the proceeds of an agricultural conservation easement over time to establish your captive bank – your own annual reservoir of cash that you own and control.  Your captive bank will protect you from the current economic one-two punch of limited credit during the recession and spiking higher interest rates during the following recovery.

For this purpose, “captive” means owned by you for your own purposes.  This concept has long been used by corporations to own and profit from their “captive” insurance companies to fund their own risks while saving the cost of dealing with commercial insurance companies.  In the same way, you will control and profit from your own bank without the cost of dealing with a commercial bank.

UNLIKE using a commercial bank, you will:

• Set your own pace of borrowings and returns
• Accumulate additional assets rather than costs. Capitalize equipment leases on favorable terms
• Avoid the boom-or-bust economic cycles and the one-two punch of limited credit or spiking higher interest rates.

LIKE a commercial bank, you will:

• Capitalize your bank but through tax-advantaged cash value contracts that are different from traditional life insurance policies providing you with maximum cash flow.
• Employ your accumulated capital as a constantly regenerating source of wealth through the principle of cash-flow velocity.
• Employ the “golden rule” principle to your benefit. If you are not familiar with the “golden rule”, then be sure to ask us.

FROM the capital generation phase, you will:

• Enjoy guaranteed safety of principle – unlike securities investments.
• Eliminate any up-front fees or sales charges.
• Protect against creditor or lawsuit claims on your assets.

WHEN your captive bank is fully funded and providing guaranteed cash-flow you will:

• Have the option to fire your commercial banker: become free of annual loan applications and costs forever
• Plan future expenditures all with tax-free passive income.
• Pass on an estate to your heirs that is worth far more than the value of your land.

We covered a lot of ground here. Contact us with questions and we’ll be happy to assist you.

Next Step: Capital Funding - About Banking