How the Elite HIDE THEIR MONEY & pass down Generational Wealth

so you're a billionaire and you've run into a problem you've amassed all this wealth all this power but you're getting old and your kids your nieces your nephews they're all lining up to kiss your butt to make sure they get listed on the will but your family doesn't know anything about money they didn't have to grind it out like you did everything was given to them so if you leave any money to them they are gonna squander it no seriously a staggering 70 of wealthy families lose their wealth by the Next Generation with 90 losing it by the generation after that two generations that is all it takes for all your wealth all your hard work the Empire you've built to go circling down the drain you cannot let that happen but lucky for you ultra wealthy dynasties have already figured out how to solve this problem and at the center of it all are the Rockefellers who after 80 years since his death Seven Generations later John D rockefeller's family is still standing as one of the wealthiest families on Earth how wealthy well no one knows because they're just that good at hiding it and in this video we are gonna expose it all trusts Family Foundation family offices and a super clever tactic that not many people know about stay dangerous this is how the rich get richer and this is definitely not Financial advice foreign here's what you have to understand about the ultra wealthy versus the masses the masses want to get rich so they can own the lambo so they can own the yacht the Mansion the private jets they want to show it off they want to flaunt their wealth but owning stuff is for the peasants when you legally own something leeches wants to sue you every chance they get these want to steal from you the government wants to tax you into Oblivion ambitious prosecutors want to take you down and the plebs want to pillage you that is why the ultra wealthy do not want to own stuff because owning stuff sucks instead what you want to do is have control over your assets as if you owned it without actually owning it you want to live in the penthouse on billionaires row without it being tied to your name you want to sell your mega yacht without it being under your name just ask the Russian oligars if they agree the key is control not ownership you want to be able to do everything you can with the thing as if you owned it without having your name on the papers because when you have ownership taxes follow you and liability follows you and also sometimes Fame follows you and so those three things could be problematic and the people that are really wealthy want control but they don't necessarily want the liability that comes with ownership and they don't necessarily want the taxation that files title and ownership and so many many of the wealthiest people in the world we don't even know their names because they have a ton of control but they're not names they're not personally on a lot of assets and and wealth and that's really the name of the game this is my friend Caleb by the way with better wealth and he's dedicated his life to learning how the ultra wolfy do things to bring down that knowledge to Everyday People Like Us do you think there's richer people out there than you know the people that we see on the Forbes list like Bezos Yeah a hundred percent there's there's people that are way way wealthier and the people on the Forbes list because of entities and structures and other things that they control that they're not giving credit for and they do it intentionally but how do you control something without owning it simple the elite have created certain entities they've created certain tools that give you all the control you want while technically on paper you're as broke as the bigger on the streets and the first tool that family is like the Rockefellers use is called a trust [Music] thank you in 1934 John D Rockefeller Jr established trust for his daughter and five sons that consisted of oil company stocks and real estate holdings these trusts still hold the bulk of the fortune another set of trusts were set up in 1952 for his grandchildren the fourth generation of the family but why why trust think of a trust like a corporation but for your family you put your money and real estate and businesses into this trust and once the money is in the trust you can invest that money however you want you get to set the rules for what happens to your money when you die but most importantly just like a corporation once you put money in the trust you do not own it anymore the trust owns that money you win the trust or completely separate legal entities you give up all the ownership of that money but none of the control so on paper maybe you're worth a measly 10 million dollars but in reality you might be worth over a hundred billion dollars with all that money safely stashed in hundreds of different trusts and because these trusts don't directly belong to you your money is protected if you get sued or something they can't come after the money you have in your trust just like how if you sued a corporation in they don't have any money you're not going to get a cent out of the founders personal bank accounts also in America we have a death tax which means when you die and you pass on your money to your kids they're gonna get hit with a death tax of up to 40 one of the highest in the world and Trust help your kids avoid that pesky death tax that way when you die you're a kiss just take your place on the Board of Trustees and all the control that comes with it but trusts are just one part of the succession plan what really ties everything all together is this next tool that is very very sneaky thank you [Music] when you hear the word life insurance it conjures up images like this and for the average pleb life insurance is exactly nuts but for the ultra wealthy life insurance is this insanely powerful tool that they keep on their reps there's a reason why the Rockefeller family has their own life insurance company the Rockefeller insurance company that's because for the ultra wealthy they use life insurance as kind of like a bank account but not just any ordinary bank accounts they use life insurance as kind of like a super bank account that can be used to invest tax-free it sounds weird but this is because all Life Insurance is as a contract a contract that has some very nice tax benefits because politicians don't want to tax the poor Widow that just lost her husband the problem is the traditional life insurance policies that are sold to the masses absolutely suck they're made to enrich the insurance companies and not you you buy a life insurance plan you pay some money every month to your insurance company and in exchange when you die the company gives your family a couple million dollars nothing more and nothing less so what the ultra wolf we do is they take this basic contract and they just negotiate better terms and this allows the ultra wealthy to do something very very special they put as much money as they want into their life insurance policy where it grows tax-free and then they use that money that they put into the life insurance policy to invest in whatever they want so their Investments grow tax-free your money's safe it will grow the rest of your life it will grow tax deferred you can use your money tax-free it will get passed on tax free it has a lot of other benefits and so what the wealthy you use it is they don't use it as an investment they use it as like a safe asset I call it the and asset because they're able to give their dollars more than one job and so they're able to do that while it's protected while it's off the radar screen of the IRS because it's not considered income that's how a lot of wealthy people use it and then step number three is usually what they to take the money or to utilize the money you're not withdrawing your money what a lot of people do because that would be in a lot of cases taxable upon gain they're borrowing against it or using a third party Bank to borrow against their asset and as a result if you borrow against it it's not considered income so a lot of wealthy people like Elon Musk and all these people they're they're borrowing against the equity in their businesses insurance and when you Max Fund Insurance that's why a bunch of banks do this is over 3 000 Banks today have what's called Bank on life insurance some of their safest Assets in the bank is in bank owned life insurance why do they do that it's it's an asset that they can borrow against and key team members and employees and so many institutions use life insurance not as a death benefit but as an and as a place to store and use their money but not only that just like a trust the money that the rich put in their life insurance policies are also protected from creditors and legal penalties but where things get really crazy is when the rich start borrowing money against their own life insurance policy and then they use that money to invest in more assets so basically what rich people do is they put let's say a million bucks into their insurance policy and uh that money in their insurance policy they invest it into like the stock market or something and it returns seven percent and the whole game is borrowing like 100k from that million at like a lower or interest rate on your loan at like three percent so yes that's exactly it so in just very conservative numbers if you borrowed at five percent and you earn seven percent your money and your insurance is continuing to grow and you're getting all the benefits of insurance but on that borrowed at five earning seven that's a forty percent rate of return in the first year so you're getting a forty percent rate of return on on that side and people might say that doesn't make sense you're becoming the bank you're using Arbitrage your investment is the five percent not the full money because your money is in your policy continuing to compound so the same thing goes with making a greater rate of return is you the benefit of this is having a dollar doing more than one thing and the people that borrow against it they have to make sure that their activities get a greater return than what the cost of borrowing and if you can do that you can really have a dollar doing more than one job but how does taking a loan out on your own life insurance policy even work like where do you even go to Doula you could go right to the insurance company and they give you an unstructured loan no questions asked and you could Say Hey I want a 200 000 lien it's it's almost like a HELOC but it's an unstructured so when you go to a bank and get a loan you have to pay that money back an insurance company you don't have to pay that money back because they know that you're gonna die someday and they have that unilateral contract and they're paying upon your debt so the cool thing is Jake you have this outstanding loan a 200 000 loan you're doing things with it and you never pay that money back when you die the insurance company is going to pay out your beneficiary your family minus what you owe them so insurance is one of the only institutions that doesn't require you to have to pay back that loan because they're hedging both sides or hedging your mortality and they're also hedging interest rate and because they're a lifelong contract commitment they're going to last a lot longer than we live they can play the ultimate long game and so we call these loans but they're just a more efficient way to use money and you can decide if you want to pay them back because it's either going to come out of your legacy yeah it's either going to come out of your legacy or out of your pocket while you're alive makes sense so when you say unstructured that means that there's no like repayment terms like I don't know how you decide yeah unstructured means you decide when you pay them if you pay them how much interest you pay them and and you're really in control because you are the owner of that contract but where really ties everything back together is that when your kids die you said enough so that the money that gets paid from their life insurance policy goes right back into the Family Trust when kids are born into the Rockefeller family they buy a bunch of life insurance on them and obviously the kids are able to buy things and you know continue to spend but at the end of the day when they die they have a massive death benefit that goes back to the trust replenishing the Trust on what they spend during their life so the way that a lot of people can incorporate something like this in their own life is each generation has life insurance and they have what's called Max funded life insurance and so they're using it for like a bank and they're using it to buy other things and maybe some of them have outstanding loans well what happens when the next Generation dies and the death benefit gets paid those that death benefit could ultimately pay back your outstanding loan and you're getting all the benefits of compounding so we call this the waterfall effect because if every generation had life insurance you're almost guaranteeing every generation is going to be better off no matter what decisions they make during their life because they're ultimately upon their death will reset the the trust or the family fund all while giving you control and access to use and invest all while you're alive and when Caleb realized that the ultra wealthy were doing all this he knew that he had to share with the rest of us so you can think about this from a standpoint of from day one you have safety it's easily accessible you have great growth rate you're able to use it there's built-in guarantees and you're you're compounding your money tax-free that gives you options for the future and you have protections whether you die or you get really sick before all that time you have an asset that's continuing to compound for you no other asset no other paper asset gives you anywhere near those benefits all while giving you control to do what you want with your money that's that's what for me was like oh from day one I can control my money and invest it and use it for whatever I want and I get all the benefits that's that for me was like okay they're neat more people need to hear about this because we haven't been told the truth as it relates to the power of this asset which is why Caleb created better wealth to take the strategies that the ultra Wolfie uses and make them available to smaller fish like you and I and if you think that this overfunded life insurance strategy is something that you would want to do pause the video and go to betterwealth.com Jake with the link below to learn more that's better wealth.com Jake with the link below to learn more more information on this later but better wolf is the pace sponsor of this video and I am not a registered financial advisor so check with professionals before making any financial decisions and make sure you don't go anywhere yet because no family Dynasty is complete without the good old family Foundation at some point in building your Empire you're going to realize that you have literally too much money to spend at a certain point buying another Mansion Supercar private jet even another decent investment is not going to change anything for you and that is where the Family Foundation comes in ah yes good old charity you can create a foundation put some of your money there not get taxed on any of that money and you'll still have control over it wink wink and there are many benefits to having a foundation on one hand your foundation will make you look all Noble and generous it makes your wolf a little bit more palpable to the masses he is a billionaire but at least he's also a philanthropist it's a good PR move on the other hand legally you're only required to spend five percent of your foundation's money on charity every year only five percent the rest you can use to hire family members and pay them a generous full-time salary you can use it to get your name plastered on your University Building the big thing is there's a lot of wealthy people in the news that are praised for giving most their wealth away okay and it's it's amazing and I think it's awesome that they're doing that but they understand that if you donate or give your money away it's you know you get a deduction you don't have to pay taxes on that so what the wealthy families do instead of giving Monies to Charities that they don't have control of they create their own private family Foundation which is their own non-profit giving essentially and they're able to donate to that organization again they're not donating to themselves because it's the foundation it's its own entity but I wonder who controls that entity Jake they do their families do and so they control these massive amounts of wealth and they can ultimately decide where that money goes what they do with that money who the cost of running that foundation and on and on and on and so I'm not saying that wealthy families aren't charitable that's not true at all I'm just saying that they give strategically they get a bunch of deductions today and they maintain control of that money and they only have to to give away a fraction and part of the the fraction of what they need to give away can ultimately get paid for operating the the foundation and so there's stories across the board of people that are being super super generous with their foundations people that are setting up private family foundations and barely giving anything away but they're using it as another rapper to look charitable but to ultimately just control money and so a lot of families have a foundation at the bottom of their structure because at the end of the day all the money eventually will flow down to the foundation and the foundation is another example of control entities and it's another example when set up and used properly is an amazing Legacy tool to pass on money the Next Generation in rockefeller's case he didn't use foundations as just a way to control his money no he started the Rockefeller Foundation to mold Society into his vision he used the Rockefeller Foundation to create the modern day education system as we know it click the card on the top right corner to watch that video super good he used this Foundation to push modern Western medicine and vaccines and to suppress other alternative the forms of medicine video coming soon make sure you subscribe but what can you say when you're a man that has it all what is there left to do other than to change the world into whatever you believe it should be and in terms of where your foundation is in your web of Trust Insurance corporations Etc your family Foundation is going to be at the very bottom of everything well it's it's at the bottom because a lot of times foundations are not a for-profit it's not creating wealth and so a lot of times the money is created it's either created through ownership and Investments and so it usually when it talks about flowing down at the end of the day a lot of time the way that money gets into a private family Foundation it's either donated or flows from a trust and so by default foundations don't necessarily create a ton of income they usually are an entity that you would flow or donate an example of this is when Mark Zuckerberg donated a bunch of his wealth to his foundation it's like that's an example of he made all of his money by being an entrepreneur and then he donated and you have a ton of examples of this of people donating to private family foundations and there you have it at the top the patriarch makes all the money he then puts the money into trust the family members are a part of the trust and they each get their own life insurance policies any extra money can be put into the Family Foundation for other strategic goals and when the family members die their death benefit from the life insurance goes right back into the trust to keep the family pot growing and to manage all of this you have what's called a family office basically a group of the best of the best wealth management advisors to deal with this giant mess and there's a reason you probably haven't heard about most of this the wealthy have tried to keep trust foundations Insurance all of this on the down low mainly mainly because again they don't want to create a spotlight to how they're controlling and passing on money and so that it's the same people that will create confusion in the education system these are the same people that are saying life insurance is a horrible place to put your money they know it's not an investment but they love Financial pundit saying that it is and as a result many people are just buying term investing in the stock market doing their thing putting their head down and are getting broker and broker every generation because they're not controlling and using their money like the wealthy so one of the biggest reasons most people are not talking about this life insurance Even in our industry is majority of people are not incentivized to do the right thing so the reason why a majority of life insurance policies are not set up like what I've been sharing with you is it comes down to compensation and commission we get paid about one tenth of what a typical life insurance person would get paid for setting up a policy the reason for that is we're trying to keep the policy as flexible and as over funded as possible and we get paid on What's called the base premium and and really the secret behind this is getting the base as small as possible and using other ways to front load and finance the policy and so number one the ultra wealthy don't want you to know this because they they've been using these strategies for years upon years but then a lot of the people in our space don't necessarily want you to know about this because they're making a lot of money selling typical life insurance policies for Estate Planning and so the reason we're able to do this is we play the long game and we essentially are saying hey we're gonna play the volume game we're gonna do the right thing we're gonna make money helping people set this up but we know that we're just going to serve a lot more people and in the end it's it's a great business for us to be in but everyone that works with us gets an incredible policy that's super flexible that is almost feels illegal to have so again if you're interested in using life insurance in this manner scroll down and click the link below to go to betterwealth.com Jake to learn more his team will get clear about where you're at and where you want to be to see if you would actually benefit from the strategy and if this strategy would help you they'll walk you through all the stuffs and help you get set up with everything and keep in mind Caleb was telling me how this strategy really only makes sense if you're able to save at least ten thousand dollars a year because there are some fixed costs that wouldn't make it make sense if you're only able to put in a few hundred dollars a month but if that is you scroll down and click the link below to go to betterwealth.com Jake to learn more better wolf is the paid sponsor of this video and of course I am not a registered financial advisor you should always check where your professional Financial tax and legal advisors before making any financial decisions this video is for information purposes only and as always stay dangerous [Music] thank you

Channel: Jake Tran

Views: 688,851

Keywords: better weath, caleb guillams, life insurance, the and asset, infinite banking, stock market, passive income, personal finance, panama papers, how money works, offshore accounts, shell companies, tax avoidance, tax havens, tax havens documentary, taxes, lower taxes, generational wealth, how to create generational wealth, how to make generational wealth, ultra wealthy

Id: 1vZsxpqbngo

Length: 20min 43sec (1243 seconds)

Published: Tue May 02 2023