3 – Passive Tax Free Cash Flows
What We Covered
How the ADO Multiplies Legacy Value (00:01)
- Serena example: $7,101 in → $4.23x more left in trust.
- The ADO (Accelerated Deposit Option) always creates a larger benefit than what was deposited.
- Key message: Commercial banks don’t multiply money for your family, your system can.
Visual Breakdown of Premium Impact (01:43)
- $100K premium → $3.2M permanent death benefit (set immediately).
- $78K ADO → $330K paid-up additions + increased share of dividends.
- Emphasis: Preserve capital for next year’s premium to trigger guaranteed increases in benefits and dividends.
Interest: Harmful in Banks, Helpful in Your System (04:43)
- Interest from commercial loans drains your wealth; within your system, it enhances benefits.
- Example: $80K policy loan → $5.2K interest → still leaves family $250K+ tax-free if death occurs, due to ADO.
- Commercial banks are inflexible; your system lets you decide how and when to repay.
Detach from Fear of Interest (08:10)
- Interest in commercial banks punishes you within your system, it works in your favor.
- Key takeaway: Emotional fear around loans and interest comes from bank conditioning, not from how your system works.
Compounding Power of Consistent ADOs (10:35)
- Funding the ADO every year supercharges your family bank.
- Use capital strategically, don’t park it. Like banks, you make money by moving money.
- Work with a coach to unlock opportunities and stop being disadvantaged by traditional banking.
Build Generational Wealth, Not Just Assets (13:27)
- Example: $1M in over 10 years → $10.6M death benefit (no market risk).
- ADO turns cents on the dollar into millions in trust.
- Unlike investments, this is contractually guaranteed.
Final Message: Control Your System Intentionally (19:25–23:16)
- Fund your ADO every year.
- Pay for everything through your system; vacations, investments, renovations.
- Don’t let banks profit off you. Let your family bank finance your life.
- Best practices: Always give clear instructions to Equitable when sending money (e.g., Premiums, ADO, Loans).
- Meet with your coach regularly to stay aligned and maximize your system’s potential.