Private Family Banking System

Tour Our Private Family Banking System

Do you want to build a private family banking system that will provide capital to you and future generations? Come see behind the scenes as we talk about our Marshall Family Bank in real-time. 

Today, we discuss why we added another whole life insurance policy, how our cash value is growing, and our vision for how we’ll use our family bank as the foundation to grow generational wealth.

So, if you want to see exactly how and why you can grow a family bank to secure capital reserves for your family for generations to come… tune in now!

Why We Use Life Insurance for Our Private Family Banking System

Whole life insurance has the benefit of being a protection asset, as well as a place to store wealth. Just like you would tuck money in the bank, so too can you store money in a specially designed whole life insurance policy. The added benefit is, as Bruce states: 

[4:45] “You’re storing [money] for a reason or purpose. And if you want to try to maximize your wealth, what you really are looking for is what to do to keep that money in motion.”

Whole life insurance does a few things for your savings. It keeps your money safe in a way that banks can’t. It allows you to grow your money with interest and dividends, and it provides you with the opportunity to leverage your money. The leverage piece is important because this gives you access to capital while being able to benefit from uninterrupted compound growth. 

Ultimately, we’ve chosen whole life insurance because it helps us align our money with our family’s purpose and mission.

Identify Your Priorities

In wealth and wealth building, there comes a time when you must identify what is most important to you. The “big three” options are generally safety, liquidity, and growth. While you may be able to have all three components working for you, you only get to maximize two of the three. Choosing the one or two of these components that you’re going to prioritize and maximize is critical. 


Safety refers to how secure your money is. How much are you putting at risk? Is a lot of your money tied up in risky or volatile assets? The safety of your money may also depend on what debt you have and how well-protected your money is from creditors. Likewise, you can make your money safer with things like umbrella and liability insurance, to protect yourself from lawsuits and other things that erode your wealth. 

For safety, there’s often a cost trade-off. Insurance, for example, can protect your money from prying eyes, lawsuits, and liabilities—but it costs money. Similarly, you may feel that by not investing in riskier assets that you’re not maximizing your dollars.


Liquidity is how easily you can access your money. If you tie your money up in long-term investments and projects, it’s probably not very liquid. While you may not need all of your cash to be liquid, it’s important for many families to have an easy-to-access pool of money for emergencies and opportunities. 


Growth is what most people think they want, which leads them to invest unwisely. Prioritizing growth has the potential to skyrocket your wealth. But depending on how you want to achieve your growth, it can be risky. And how much is growth worth if you lose it all? 

Similarly, you may think it’s a good idea to invest in or acquire lots of low-risk assets. But if they aren’t liquid, how much are they adding to your quality of life? 

While you may not maximize all three of the above components to wealth, you can have a pretty solid balance. Whole life insurance is one of those assets that scores pretty well in all three categories. Your insurance policy is protected from creditors and the IRS (as well as death), and the cash value is a liquid pool of money. And while the growth on a whole life insurance policy alone won’t make you rich, it does more to keep pace with inflation than the banks and can be leveraged for investments that grow. 

[14:24] “We are willing to sacrifice a high growth for the maximum amount of safety and liquidity. And the reason for that is we are confident… we can earn a return in two places simultaneously, and that we can earn a much better return externally, outside of our policy.”

The Evolution of Our Family Bank

We began implementing the Infinite Banking Concept in 2012 with a policy on Lucas. The policy was with a mutual, dividend-paying company, and had an annual premium of about $10k. This policy served us well for a long time. We took out many policy loans over the course of having it, which we repaid with the cash flow from our business. We had a strong history of paying premiums, though sometimes we only paid the base premium, sometimes the full premium with PUAs, and other times, it was somewhere in between.

After a while, we did a 1035 exchange to roll this policy into a new policy. This allowed us to work with a new company, and begin a policy with a $20k annual premium. You can learn more about our 1035 exchange in our post, “The Marshall Family Bank: Why We Started a New Life Insurance Policy.”

Adding a New Policy to the Private Family Banking System

More recently, we added another policy to our Family Bank portfolio. The purpose of our family bank is to increase our net investible income, safeguard our money, and create a legacy that supports future generations of our family. Starting a new policy to further increase our cash value (our investible dollars), made sense with that vision. So, we opened a policy on me with $30k of annual premium, as well as a full $2.1 million of term insurance to get up to my full Human Life Value. 

When designing this policy, we also decided that we wanted to be able to fund the policy for as long as possible, if we wanted to. It fits into our vision for our money and our Family Bank. For some people, it may be more important to fund it for a certain time period only. 

[33:03] “We said if we want to continue funding this, how do we guarantee that we have the ability to put in as much ongoing premium for as long as possible? And really that’s because we tremendously see the value of not only increasing a death benefit through this growth but also increasing our cash value and using this policy. The longer you have a policy in force, the more benefit you’re going to have from it.”

Why Get a Second Life Insurance Policy? 

There are many reasons that getting a second life insurance policy made sense for our family and our private family banking system. When we first bought the policy for Lucas, he was the primary income earner. It made sense to have something in place to replace his income if needed. As our income has increased over the years, we knew we wanted another policy, so it made sense to take a whole life policy out on me, as well. 

In addition to the protection aspect, this also allows us to save at least 30% of our income. As our income continues to increase, we intend to continue increasing our savings. This helps us create a bigger and bigger pool of wealth with which to invest, spend on our family, and ultimately help ensure the success of future generations. 

Take the Next Step

Looking back, we may not have done things much differently. However, we do wish we had gotten an earlier start. If we had started a policy just five years earlier than we did, we could be in a much different spot. Yet hindsight is 20/20, and we’re still grateful that we got started when we did. 

If you’re thinking about utilizing the family banking strategy, start as soon as you can. It’s an incredible journey, and one you’ll be glad you started sooner than later. While it’s important to figure out what you want from your policy and your system, don’t let the details weigh you down too much. Something is still better than nothing, and whole life insurance is a flexible asset. You will have plenty of opportunities to buy more insurance and refine your system, but you won’t get the time back you spend waiting.

Book A Strategy Call

Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!  Book an Introductory Call with our team today, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to to learn more.

Rachel Marshall

Rachel Marshall is the Co-Founder and Chief Financial Educator of The Money Advantage and President of Marshall's Insurance and Financial Services. She is known for making money simple, fun, and doable. Rachel has built a team of licensed professionals (investment advisors, insurance agents, attorneys, tax strategists) to help her clients create time and money freedom with cash flow strategies, Privatized Banking, and alternative investments. Rachel is the co-host of The Money Advantage podcast, the popular business and personal finance show. She teaches how to keep more of the money you make, protect it, and turn it into cash-flowing assets.
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