Privatized Banking Concepts Michael Krach President ACKK, Inc

Our Commitment to You New money is not necessary! Lower risk with higher rate of return!

Your Circle of Financing and Wealth Lifestyle: Food Clothing Entertainment Vacations Accumulated: Savings Investment Mutual Funds Retirement Plans Real Estate Transferred: Debt to Finance Institutions Interest to Those Institutions Taxes Unnecessarily Paid, Lost Opportunity Costs

Privatized Banking Concepts Improve Financial Position Minimize wealth transfers Accumulate pool of capital Providing accessibility & control Uninterrupted compounding

Here’s what happens when you... Here’s what happens when you... You earn Compound Interest 1 st you earn interest on the principal you paid into Own Your Own Bank Own Your Own Bank Triple YOUR BANK 2 nd you earn money on the interest you would have paid to other banks. 3 rd you earn interest on that interest. PBC

Here’s what happens when you... Here’s what happens when you... Remember what was involved when you needed to borrow money from … √ Fill out application Basically you had to that you didn’t need the money Own Your Own Bank Own Your Own Bank PBC the other bank √ Submit financials √ Commit collateral √ Wait and wish √ Submit tax records √ Wish and wonder √ Wonder and worry PROVE … before they’d loan it to you.

What’s involved when you need to borrow money from … YOUR BANK YOUR BANK √ You pick up the phone √ They cut you a check No qualifying, no lines, no worry – because … √ Tell how much you need

Here’s what happens when you... Here’s what happens when you... You can borrow your money WHENEVER and HOWEVER you want! Own Your Own Bank Own Your Own Bank It’s your money YOUR BANK PBC TAX FREE A) – Taxable How would you like your money? C) – PBC B) – Tax Deferred

NOT … NOT … TAX FREE ! tax deferred tax deferred

Growth with NO TAX Growth with NO TAX Growth taxed at 17% Growth taxed at 17% Growth taxed at 27% Growth taxed at 27% YEAR$ AMOUNT , , , , , , , , , , ,048, YEAR$ AMOUNT , , , , , , , , , $ 1,048,576 $ 177,428 $57,666 YEAR$ AMOUNT , , , , , , , ,666.30

Transfer of Wealth Examples Mortgages Financing of Truck & Car Credit Cards Protection Insurance Taxes Building Depreciation Anything purchased with cash

Problem with Debt Obligation on future earnings Lose capital to purchases AND financing cost forever Pay as debtor to the Creditor vs Your Bank Loss of Control

Conventional Vs. PBC Method Conventional SaverBank/Banker Borrower PRIVATE RESERVE YOU Your Business Loan % Loan % LOAN REPAYMENT LOAN REPAYMENT

Privatized Banking Concepts Alternative to traditional financing Benefits: Low risk wealth creation Access to capital Asset protection Tax advantages

Banks Earn Money by: Turning liabilities into assets Depositors get 0-2% CD’s, Savings, Checking Bank loans $ for 4-29% Auto loans, mortgages, credit cards, business loans Creating velocity (keep turning the money)

You Earn Money by: Minimizing wealth transfers Turning liabilities into assets Creating velocity Uninterrupted compound interest

+$60 +$100+$50+$150 $1000 $800 $600 $400 $200 $0 Private Reserve Financing Source Personal Finance System Borrower $1000 Loan at 5% $1000 Loan at 15%15% Interest Added $1150 Loan Repayment$60 Compound Interest $1000 Loan Loan Interest Compound Interest For tax purposes, consider the Interest deduction for a business loan. Income gains in the Policy Owner Finance System from business loan may be taxable. Collateral for lien Uninterrupted Growth 5% >>> 15% >>> Personal or Business use $1,000

Private Reserve Characteristics Sav/cd 401K Stocks RE LI Low Risk/Guar Return X X Asset Protection X S X Liquidity/Use/Control S S S S X Leverage X Collateral S X X Tax Deferred X X Wealth Transfers S X Penalties X X Tax Free Distribution S X

Lien Against Collateral Capacity

Using $50,000 in your control to make multiple purchases. 1 st year $50,000 SUV $926/ month 6 years $11,112 /year one 2 nd year $10, wheelers $448/mo 2 years $5376/year 3 rd year $10,000 Furniture $240/mo 4 years $2880/year Gross returns: SUV = $66,693 4 wheelers = $10,752 Furniture = $11,523 Total = $88,968 Your total increase = 78% Using the Same Money Over and Over

VEHICLE EXAMPLE VEHICLE EXAMPLE LEASE FINANCE PAY CASH PBC vs.

SIMPLE COMPARISON - No down payment - No trade-in - No inflation SIMPLE COMPARISON - No down payment - No trade-in - No inflation FINANCING CONSIDERATIONS -Between ages 23 to 67 you purchase a new vehicle -This happens every 4 years -The vehicles cost $10,500 each time

COMPARISON $$$$$$$$$$$$ $$$$$$$$$$$$ LEASE FINANCE PAY CASH PBC LOST $-175,000 $$$$$$ $$$$$$ $$$$ $$$$ LOST $-138,000 $ $ LOST $-116,000 GAIN $+552,000 Pg “ … create your own banking system so that you can control 100% of your needs.” Remember this example was for 1 CAR! After 4 years, you’d never have to go to a finance company to finance a car again. What if you did this with 2 CARS?

$120,000 Equipment Loan Breakdown * This scenario depicts 7 year IRS Depreciation Table, and interest ($37,060) and principal ($120,000) leaving your control.

The Results of Typical financing Principal paid out -$120,000 Interest paid out - $37,000 Total money transferred out of your Circle of Wealth - $157,000 Let’s compare

Opportunity Cost of the Loan If you figure the opportunity cost in your IRC 7702 banking system of just 6% for 32 years it really comes to $1,903,436!!!

Remember, Opportunity Cost is the money you could have gained from your money, if not spent elsewhere! -$725 vs. $1,903,436 Does the banker give your money back to you with interest, after you have borrowed it from him/her? You can….as your own banker!!

College for Kids them Retirement 34 Yr Old Father of 2 5 and 6 20K Premium College 5 yr old Cash $317, 532 Cash at 65yr old =$1,180,214 Ave over $75,000 Tax Free for 20 Yrs

46 Year Old Real Estate Agent $16,000 Premium Cash at 65 Yrs of Age $429,034 Age 70 another $250,000 Ave over $50,000 Tax Free for 15 years LI at 65 years of Age $812,033+

Conventional Vs. PRS Method Conventional SaverBank/Banker Borrower PRIVATE RESERVE YOU Your Business Loan % Loan % LOAN REPAYMENT LOAN REPAYMENT

PRIVATE RESERVE FAMILY S-CORP. or LLC $10,000 $5,000 $5,000 Interest Paid To Insurance Company Schedule B $ 10,000 Investment income Schedule A $5,000 interest expense Taxes Due $1,750 K–1 is reduced by $10,000 Taxes reduced by $3,500 $ 1, (Tax Recovery) $10, (Total from Bus) Net Tax Savings $1,750 $10,000 income $ 3,500 taxes $ 6,500 Net Overall Effect on 1040 $1,750 Tax Reduction Tax Reduction Strategy

Summary: Ask yourself How much interest have you paid in your lifetime? Where is it now? Unless you pay back into a reserve fund, when your equipment needs replacing where will you go to get the money? Remember, funds in conventional banks or security accounts are subject to taxes and are at risk to creditor demands, lawsuits or judgments. Would you like to have liquidity, plus the total use and control of your money?

Privatized Banking for Business Owners Build wealth Legacy Planning –children & grandchildren Legacy Planning for schools, non-profit organizations, etc. Key Man Buy/Sell Agreements Financing

Now imagine how you could impact future generations… Your children, grandchildren; capturing all those unnecessary wealth transfers, setting them up a program early in life. Have use of the funds until you turn over the control of the program to them. Help us teach them! Leaving Your Legacy: Community, schools, foundations or non-profit groups. All become the benefactors of the best known wealth building vehicle Uninterrupted Compound Interest.

Many of these concepts may be new to you and may seem complex … relax … You don’t need to understand every component in a car in order to …

Drive it ! Drive it !

Next Step Appointment with Privatized Banking professional Determine specific benefits for you

Privatized Banking Concepts Michael Krach President ACKK, Inc