Common Sense Economics

COMMON SENSE ECONOMICS for the Family & Business

Tommy L. Ruff ChFC® • MCEP™ • CLU® • RFC® Master Certified Estate Planner Over 40 Years of Experience

Endorsements “After reading your book, we had to meet with you, which turned out to be the best decision of our financial life. You have taught us how to eliminate market losses, fees and commissions, and unnecessary taxes. Your estate planning strategy not only protected our family from the agony of probate, but you have helped us regain total control of our estate. We thank God for your amazing book and for giving you the wisdom and knowledge to help folks like us.” Jim and Beverly Ghan “We would recommend Tommy Ruff to anyone who has a retirement program and who is concerned with losing money or paying fees. We have found him to be trustworthy and conscientious. He does what he says and says what he does. He stays current and up to date in the challenging field of estate planning. He is always concerned about what works for the best interest of his clients. He is an outstanding planner. He is not the world we live in today. You can trust Tommy. We have never disappointed us in any way. He is a godly man. We really appreciate how he services our account. When we have questions, he has answers or can get them quickly. Tommy is very honest, very black and white with his thinking, and no nonsense. We appreciate all he has done for us in the past. We have never lost a penny or paid a fee. His process eliminates our worry over our finances. Call him, you will not be disappointed.” Dr. Joel & Jonell Chaney Springfield, MO “Tommy, I want to thank you for introducing my family to Privatized Banking or Infinite banking as some would call it. Our dividends have outperformed their projections, and you have shown us the magic of creating family wealth with pennies on the dollar. No wonder so many banks and corporations use cash value life insurance for their safe money reserves. I also want to thank you for showing us how to eliminate fees, commissions, and unnecessary taxes with our retirement accounts. The premiums bonus was the cream on top of the cake. I have researched your products on how safe our money is with an insurance company as compared to having it with the financial vehicles offered by Wall Street. By moving our money to really gives me a strong sense of security when it comes to our life savings. I would recommend everyone read your book, but more important than reading your book, they should have a conversation with you. You have so many years of experience and that comes wisdom which you shared with folks like me. I will say this, that you have proven to my family that you are a man of your word, you give great service, and you are a man of integrity. Again, thank you and may the good Lord continue to bless you.” Kent Hanson, Battlefield, MO Kent has gone home to be with the Lord, and I miss him. “I cannot believe how much I learned from your “Common Sense Economics” financial class. Everything I learned in accounting for my BSBA in Finance, Accounting MBA and working thirty years as a CPA just flew out the window! I have worked in banks, S&Ls, Lending and Leasing, insurance underwriting, as a Controller, an Auditor, and a Treasurer. I’ve never seen anything such as you taught today for personal financial planning. It is revolutionary!” Diane Hartsfield, CPA Rogers, AR

“Tommy has been like a father to me for 38 years. He is truthful to a fault, but you never have to worry about being misled. Tommy is a very special person as being a great grandparent, has taken on the responsibility of adopting his great grandson Greyson, and providing him with a wonderful home filled with lots of love and wisdom. I don’t know how will read this comment, but I do know that you can trust Tommy is teaching you how to overcome the school of hard knocks with integrity and honor, and it is my honor to be writing this evaluation of a good man.” Mike Moore, Retired State Capitol, Little Rock, AR “Thank you so much Tommy for making me feel as though I have finally found a financial advisor who really cares about me as an individual. As I told you after everything had settled, I feel as though I am home. I appreciate your knowledge and your wisdom, but mostly your honesty. With my previous advisor I had invested $50k in gold as that is what they recommended at the time and within just a few months my account was down to $13k. Thank you for your solid financial advice. With your process, which I believe is a no-brainer, if followed, everyone should be calling you after they have read your book. Again, thank you for teaching me how to never lose money or pay fees. I would recommend your book to anyone who is serious about protecting their retirement money.” John Tinkle, Mtn. View, AR “Tommy is my financial coach, and he has helped my grandfather with his financial and estate planning for many years. I didn't realize the importance of having a personal financial coach until the events that brought me to him. After my grandfather passed away, that the way Tommy help secure my grandfather's estate to keep out the unwanted relatives and the Probate court was what I needed for my family. Tommy helped me set up my own financial coaching plan, and now, with my kids' future in mind, I know my family will be taken care of. I know from experience. His knowledge is superior. My grandfather told me one time that when the time comes for him to pass away he rely on Tommy and his wisdom. He said that by following Tommy's direction on having the right type of insurance policy, he would be able to pass over $400k to his heirs tax-free. He said he made him a lot of money without risk or fees. I really don't have the words to truly express my faith and trust and gratitude for how he helped my family. Tommy Ruff is a man of his word. His faith in God drives him to help people in every area of their lives. His wisdom, and his always there for me. Read his book, listen to his personal story, and follow his recommendations. You won't be disappointed. His is a true blessing.” Sabrina Ellis, Baton, AR “Tommy Ruff, CLU ChFC RFC MCEP, It is a tremendous relief not to worry about losing our retirement and paying massive retirement fees. Your knowledge for our subject is excellent and is only surpassed by your love and concern for your clients and what is best for them.”

Dr. Chuck & Ramona McNeal, Berryville, AR

“Tommy, I want to thank you from the bottom of my heart for what you did for my mom and dad and ultimately myself and my daughter. Working with you was a pleasure, even though it took over a year to get the mess cleaned up that their previous financial advisor, insurance agent and attorney had made for our family. Dad is such a trusting individual, and he allowed, without knowing, the insurance agent and the attorney to get a stranglehold on his and mom’s entire estate. They (the predators) had placed the attorney in complete control of my parents’ estate.

In addition, the financial advisor had my parents’ retirement money investments that were completely unsuitable for them, and they lost over $200,000 because of him. The insurance agent had the attorney set up irrevocable life insurance trusts using unsuitable variable life insurance to fund the trusts, which also lost them a lot of money. I am so thankful that you read your book and then made the wise decision to involve you and your qualified estate attorney to unravel the mess they found themselves in with their estate and their assets. Their previous attorney had written them a couple of living trusts over the years and yet had never funded their trusts with any of their assets, meaning their estate would have had to be probated, which, again, would have cost thousands of unnecessary dollars. Again, thank you for taking care of my parents. They, myself, and my daughter are now well protected from the Probate courts, losing money, or paying any more fees, and your planning process, you have saved us from paying a lot of unnecessary taxes. God bless you!”

Regina Ghan, Warsaw, MO

“Tommy, we want to thank you for your educational teaching how to protect your retirement money from ever losing value through market corrections or by paying fees and commissions. Also, we are so thankful that we established a Privatized Banking years ago before wealth anyone ever thought. Amazing program. Getting old is not fun, but we are wise and at peace planning. We now have confidence in our estate planning. Avoid the Probate process. We can give all that we have to those we love without any outside interference. Keep up the great work that you do. Our only message to anyone who will read this letter is: ‘What are you waiting on?’ Tommy is the real deal, and he can be trusted to do what is the best for your family. Tommy, God bless you!” Randy and Marlene Aylor, Springfield, MO “Your estate planning techniques are without question, amazing. I am now 85 years young and because of your education as an estate planner you helped me make a very wise decision back in 2006 by establishing a Charitable Trust which saved me thousands of dollars in capital gains taxes and the annuity, we used to fund my trust has been unbelievable. Since 2006 my annualized increase in value over my premium less withdrawals including my sign-up bonus has been over 8.21%. I have never paid a fee or had to worry about market losses.” Joe Bill Dearing, Harrison, AR. “Tommy, we love the relaxing atmosphere of your home. Your ability to help us create wealth without taking risk or paying management fees is a blessing. Knowing you are a man of faith really gave us confidence while allowing you to help us protect and grow our life savings. Larry is an architect and the way you explained your financial strategies in such a simple and common- sense way was easy for him to understand and gave us both confidence in your process. I have been sales and customer service for most of my career and I can appreciate how you patiently teach your common-sense economics to eliminate any confusion about the challenge of creating wealth. We thank the good Lord that He has brought us together.” Larry & Mary Moore, Forsyth, MO “I cannot believe how much I learned from your ‘Common Sense Economics’ financial class. Everything I learned in achieving my BSBA in Finance, Accounting, MBA and working thirty years as a CPA just flew out the window. I have worked in banks, S&L’s, Lending and Leasing, insurance

underwriting, as a Controller, an Auditor, and a Treasurer. I’ve never seen anything such as you taught today for personal financial planning. It is revolutionary!” Diane Hartsfield, CPA, Rogers, AR “My wife and I retired from West Texas where we owned several businesses. Tommy recommended highly to us one of our friends. We had been with Merrill Lynch for many years. When Tommy explained the fees, we were paying $14 million and how he could help us eliminate the worry of what happens when the market drops, we came on board and it has been one of the best decisions we have ever made. Tommy is honest, caring and can promise you that you will never pay a fee or lose a penny if you follow his leadership. I could recommend Tommy without fear of misinforming anyone. He is a true professional and a man of integrity and he is a man that loves God, and we really appreciate that.” Bob & Marva Cox, Ridgedale, MO “Tommy, thank you for taking care of me with my financial decisions. Your experience and knowledge is a treasure to me since I lost my Roy a couple of years ago. I thank God that He sent you to us. Because of you I never have to worry about losing any money as I watch my Privatize Family Bank and my annuities continue to grow each year. Your philosophy should be a beacon of hope for anyone seeking to protect their money. With your estate planning process, I will never have to worry about my assets going through the Probate process. I truly thank God for you and the security you have brought to me.” S. Nelson, Mtn. Home, AR “Tommy, over the past 36 years that I have known you, I have been impressed with your constant desire to provide your clients, including myself and my family, honest and accurate information. I would encourage anyone who is serious about creating wealth to following your planning process. Your estate planning process is second to none. It is simple to understand, and it works. I appreciate you being my friend and someone my inner circle that I truly trust.”

Jerry "Cub" Scott, Banker, Harrison, AR

There once were two young men who held different philosophies when it came to money. One was a saver; the other was an investor. The saver was slightly more conservative, while his friend always wanted the best and he wanted now. Over the years, when they reached retirement age, the saver had security. He owned, paid for, and had a guaranteed income for his and his wife’s life. They had decided years ago to incorporate the Privatized Family Banking strategy as part of their retirement planning and have a well-designed, high-grade dividend-paying whole life insurance policy, to ensure they had enough tax-free retirement income. Because of their dedication to consistent savings, they had the funds to take care of a long-term stay in a nursing facility if that situation should ever arise. Plus, they had planned to leave a wonderful legacy for their family. Not so with the investor friend. He was deep in debt due to several market corrections, management fees, and taxes. He had little cash and planned on working for as long as possible. The question is, are you a creator of wealth and a saver, or do you love living only for the present, not really thinking about how the cost of longevity can and will affect your life as you grow older? MOST FINANCIAL ADVISORS CLAIM TO HAVE THE ANSWERS, YET THEY DON’T EVEN KNOW THE QUESTIONS!

Tommy L. Ruff

Table of Contents

Foreword by Jeff Mendenhall ........................................................................ 8 Introduction ..................................................................................................... 10 Why I wrote this book, and what you’ll gain. Chapter 1: The Origin of Money .................................................................... 15 Discover how our money system came into being, the forces that shaped it, and why understanding this history is key to protecting your future. Chapter 2: Protecting Retirement Accounts .............................................37 Learn how to shield your retirement savings from market losses, hidden fees, taxes, and government risks. A must-read for anyone with a 401(k), IRA, SEP or employer-sponsored plan. Chapter 3: The Necessity of Estate Planning.............................................79 Your family is last in line when it comes to your estate. This chapter exposes the dangers of procrastination and shows how to avoid the costly trap of probate. Chapter 4: The Challenge of Longevity ..................................................... 96 Your family is last in line when it comes to your estate. This chapter exposes the dangers of procrastination and shows how to avoid the costly trap of probate. Chapter 5: Privatized Family Banking ...................................................... 103 Unlock the powerful strategy of Privatized Family Banking using dividend-paying whole life insurance. Build wealth, tax-free income, liquidity, and family protection—without relying on government- controlled plans. This chapter also will lead you to a link teaching you how to use the government’s tax code to provide tax-free income while eliminating market losses, reducing management fees which can eat up as much as a third of your retirement income. Most financial advisors have not a clue how this strategy works.

Chapter 6: Business Owners and Wealth Protection.............................153 If you own a business, this chapter is vital. Learn how to avoid hidden risks in contracts, protect against tax traps, and build your own retirement plan—free from employees and government interference. Chapter 7: God’s Economic System .......................................................... 169 Discover timeless biblical truths about creating, growing, and keeping wealth in the family—principles that outlast markets, taxes, and government programs.

References ..................................................................................................... 178 About the Author .......................................................................................... 187

Foreword

Tommy’s book could easily have been titled “Confessions of a Financial Professional”. Yet after more than a casual “test drive” and “kick-the- tires” review, I found myself compelled to go back and re-read this time with a deeper view toward understanding the author’s true purpose. And in doing so, I discovered that Tommy L. Ruff, CLU®, ChFC®, Master Certified Estate Planner™ and Registered Financial Consultant®, had written with a much weightier intention than simply sharing financial insights. As an author myself, I am always curious about what drives individuals to set aside precious time to write a book. When I ask fellow authors what inspired them, I look for three words in their response: conviction, concern, and truth. Over the years, I have come to believe that the greatest literary works—those that stand the test of time—are born from a heart of conviction, shaped by concern for others, and fueled by a relentless desire to tell the truth. Such is the book you now hold in your hands. When a writer combines painstaking research with the honesty of personal testimony, the result is rarely for self-promotion or gain. Rather, it becomes a message that is selfless, practical, and transformative. That is exactly what you will find in the pages ahead—a clear, compelling guide to principles that shaped Tommy’s own financial life and, if embraced, can impact yours as well. Read with intention, this book could influence not only individuals, but the financial legacy of an entire generation. There are very few books—outside of the Bible—that offer truly life- transforming knowledge on the subject of money and stewardship. I believe this is one of them. You do have an economic destiny. It doesn’t happen by accident; it happens by choice. The truths Tommy presents here will equip you to make better economic choices, protect your family’s estate, and preserve the legacy you’ve worked so hard to build. When you understand the real rules of the money game—and when you see what is truly happening with the wealth you’ve accumulated—only

then can you make the decisions that secure both your future and the future of generations to come. Jeff Mendenhall, Author of Your Economic Destiny

Introduction

I have read many, many books on finance and financial planning, however this book written by Tommy L. Ruff, CLU ChFC MCEP RFC, is the most informative, educational book I have read when it comes to common sense economics. This book is a game changer.

— Andie Edwards, SW MO

Why I Wrote This Book I wrote this book for you, my fellow American. My prayer is that as you read my story, you will understand that I know firsthand the devastation one dying too soon—or living too long—can have on a family. Having served in the financial services industry for more than 40 years, I’ve uncovered important truths I want to share with you, your family, and your business should you be an owner. Chief among them is: how to create wealth and then protect it so it remains in your family or your possession. The reality is, many predators are eager for your assets—finance companies, opportunistic relatives, the government, inflation, and the fees buried in retirement accounts. Since the advent of the 401(k) and other qualified plans in the late 1970s, the financial services industry has done little to truly help people build and preserve wealth. Instead, they’ve shifted risks onto families. Today, we are entering new and uncertain territory—not only in taxes and inflation, but also with technology and artificial intelligence (AI). While today’s historically low tax brackets remain in place, the greatest threats to retirement savings are inflation and the disruptive impact of AI. Consider this: inflation has averaged about 3% annually over the past 25 years. At that rate, if a family’s monthly expenses are $4,600 today, in just ten years those expenses will rise to $6,182. Add to that the wave of Baby

Boomers retiring, rising healthcare costs, and longer life expectancies, and we face serious economic challenges. In this new world of artificial intelligence, there will be three types of people:

Those displaced by robots. Those controlled by robots. Those enhanced by robots.

To survive and thrive, we must choose the third category. We need to master the things only humans can do—building trust, creating relationships, and communicating effectively—while using AI as a tool to strengthen our human advantage. When I began my career in 1984, I could not have foreseen the impact that government policy, Wall Street, the Federal Reserve, and financial institutions would have on families—or how rapidly technology and demographics would reshape the American household. The financial noise from media pundits and uninformed advisors has created confusion, and far too many families are paying the price. I know this because I once believed that with the right knowledge and technology, an advisor could time the stock market. I was trained by some of the brightest minds in the industry to use cycles and strategies to enter and exit the market at the “right time.” It didn’t work. Since 2002, I’ve completely changed how I protect my clients’ retirement savings. The strategies I use today look nothing like the ones I once depended on. But this book is not only about money. It is about life—and the valleys that most of us have, or will, walk through. My Personal Story On October 6, 2014, tragedy struck my family. My granddaughter, whom we had helped raise, was murdered by her suicidal husband, leaving behind a three-month-old baby boy. My wife and I endured fifteen long months of legal battles, spending over $21,000 to adopt our great-

grandson. In the middle of that storm, I also underwent open-heart surgery. In 2019, after 55 years of marriage, she passed away with cancer. I became a single dad. Later that same year, I lost my left foot to amputation. During my recovery, I nearly lost my life from internal bleeding. And in 2023, I endured another amputation, losing part of my right leg. I spent three months in hospitals, nursing homes, and assisted living before finally returning home. At 79 years old, I am still studying every day to better serve my clients and learning to walk again. Through it all, God has been faithful. In His grace, He brought Marcela into my life from Colombia, South America. We met online in 2020, and after three and a half years of long-distance conversations and six trips to Cancun, she joined me in Arkansas in 2023 as my wife. She has been an incredible blessing to both me and my son, Greyson. Yet life’s trials continued. In October of last year, another granddaughter was killed in a car crash. The past decade has been marked by loss and pain. Yet I can confidently say: God is so faithful. He has walked with me through every valley. And I know this—without foresight, planning, life insurance, health insurance, and financial preparation, I would not have made it through. That is why I wrote this book: to equip you with knowledge, prepare you for life’s uncertainties, and remind you that education and action are your best weapons against financial and economic challenges. My hope is to help you and your family prepare for the two most important financial realities we all face: dying too soon or living too long. My own mother-in-law spent her last 39 months in a nursing home at a cost of over $8,000 per month. Catastrophic events like these can devastate a family. Here is one guarantee in your financial world; your family will need every dollar you didn’t leave them. I encourage you to begin this book by skimming through the table of contents and reading the chapters that speak most directly to where you

are today. Then take the next step. Your future—and your family’s future— depend on it. Why This Book Matters Since the early 2000s, I have recommended financial strategies that deal with certainties, not guesses. I simply do not believe in the way most financial planning is presented in America today. Too often, financial advisors base their strategies on projections and assumptions that rarely come to fruition. I know this because I once believed in the same conventional wisdom—only to discover it was mostly thinking without logic. That’s why I wrote this book. To challenge the myths, expose the risks, and show you a clear path forward. The following eight questions are very important to secure successful retirement life. The Nine Questions That Determine Your Financial Survival 1. Do you know the rate of return you must earn on your current investments to sustain your lifestyle after you retire? 2. Do you know how much you need to save right now to fund your retirement years? 3. Do you know your true risk exposure in your retirement accounts? 4. Are your retirement accounts insulated from market losses, fees, and commissions? 5. How many more years will you have to continue working after your ideal retirement date? 6. Have you factored inflation into your retirement calculations? 7. Are your assets protected from probate, the government, unwanted relatives and other outside predators? 8. Do you know how to become tax-free instead of the government’s “perfect taxpayer”? 9. Do you have your estate in good order to eliminate those predators of your assets?

If your account value falls short of retirement, what lifestyle pleasures will you be forced to surrender to avoid running out of money during your lifetime? If you cannot answer these questions with confidence, this book will help you. I’ve designed it to be clear, simple, and practical. And should you have questions, I invite you to call me directly so we can talk. 870-715-9007, 24/7. What You’ll Gain Since stepping away from the role of investment advisor back in 2000, I’ve dedicated myself to helping clients create wealth and keep it safe— shielding them from unnecessary taxes, market losses, management fees, commissions, the probate courts, the wrong mortgage, and the silent drain of lost opportunity dollars (LODs) that quietly shrink their circle of wealth. The truth is simple: the government, Wall Street, and financial institutions hope you never discover the strategies in this book. Once you do, you will separate yourself from the uninformed crowd. The principles you uncover here are proven, practical, and powerful—capable of making a lasting difference in your and your family’s financial life.

CHAPTER ONE The Origin of Money

Big, Big Debt! The problem is that most Americans do not truly understand how taxes and inflation will be such a burden on future generations. Our aging population continues to put pressure on today’s workforce, which must provide the tax dollars to support benefits already promised. Consider this: there are approximately 78 million Baby Boomers moving into retirement. Each year, this puts even greater strain on the younger workforce to fund Social Security, Medicare, and other government programs. At the time of this writing, the U.S. National Debt is over $27 trillion. In 2008, it was only $10.6 trillion. By 2033, it is projected to exceed $57 trillion. Meanwhile, our national deficit is already more than $3.9 trillion, and the total U.S. debt—including state and local obligations—is over $97 trillion. Ask yourself this question: Do you believe your taxes will be higher or lower in the future? The reality is clear: personal taxes will increase. Unfunded Promises When you include Social Security, Medicare (Parts A, B, and D), federal debt held by the public, and federal employee and veteran benefits, the government’s unfunded liabilities exceed $430 trillion. That is money already promised—but not yet funded. Consider this comparison: In 1959, the total National Debt was $285 billion, and the annual interest cost was $7.5 billion. By 2008, the annual interest alone had skyrocketed to $383 billion.

In eight years it is projected to be increased to be over $57.2 trillion. (Source: U.S. Treasury; see usdebtclock.org) If our Founding Fathers could see this today, they would be shouting: “Get back to the basics!” The truth is unavoidable: our government will require massive new sums of money to sustain its programs. I am thankful that President Trump was able to keep the current tax structure in place for many years to come. The Retirement Trap Today, roughly 83% of the American workforce has their retirement savings tied up in government-sponsored plans such as 401(k)s,

403(b)s, or IRAs—all managed by Wall Street. Here’s what most people don’t realize:

Over a lifetime, workers may pay as much in fees to silent managers as they will in taxes. These accounts offer little to no liquidity when you might need money the most. By joining, workers have unknowingly entered the government’s tax trap, where the rules—and tax rates—are set and controlled in Washington, D.C. On top of that, America’s unfunded pension liability exceeds $22.5 trillion. That means state and corporate pension plans are already short

billions they have promised to pay out. The Illusion of “Tax Savings”

Employers and accountants have been convinced that qualified plans are a tax savings tool. But in reality, they are not. These plans only postpone and compound the tax bill—along with the calculation of your tax bracket, which will almost certainly be higher in the future. The Government’s Eyes on Your Money There is an estimated $19+ trillion sitting in retirement accounts across America. Do you think Washington hasn’t noticed? Search online for: “Federal Government Eyes Confiscating Individual Retirement Accounts and 401(k)s” You’ll see the truth: Washington views your savings as a convenient pool of money to tap into when their spending addiction

requires more fuel. Bottom Line: If your retirement savings strategy is based only on government-sponsored accounts, you may already be on the wrong side of history. Financial Bondage and Freedom Many Americans today are in financial bondage because of consumer debt. Most families are simply trying to make ends meet. My hope is that this book will give you financial strategies that can help break that cycle and bring lasting freedom. At 79 years old, I am blessed with an amazing wife in her 50s, an eleven- year-old son, and two great-granddaughters. And yet I often wonder: What kind of world will they grow up in? How will they survive and overcome the economic and social challenges of tomorrow? What freedoms will be restricted? What lifestyle will be possible? In other words, how will they cope with our changing world? Let me ask you a question: Is your money worth more today than it will be tomorrow? Being informed about basic economics is one of the keys to financial freedom. A Personal Note Growing up in what I call the “golden years” of America, I have always believed in the American Dream—the idea that anyone could become anything simply because they were American. I have lived that dream myself, working my way through the University of Arkansas and graduating with a bachelor’s degree in marketing and a minor in sociology. Looking back, I can only imagine how much more difficult it would be to accomplish the same thing in today’s world. It will take determination, grit, discipline and hard work with focus on your dreams. That’s why I wrote this book. It represents more than 41 years in the financial services industry and nearly 80 years of living through a rapidly changing world. My goal is simple: to share the strategies that can change your economic destiny and prepare your family for the future.

I encourage you to revisit the chapters that speak to you most and read them more than once. The truths within these pages are timeless, and each time you return to them, you’ll find new clarity and confidence. My purpose is clear: to help you build liquidity, eliminate market risk and brokerage fees, and protect your assets from predators, whether that’s long-term care costs, unnecessary taxes, interest paid to others, or the probate system. When you finish this book, I encourage you to share it with your family. Give them my website address: Add a little bit of body text. It is safe. The Foundation of My Philosophy I have drawn wisdom from some of the greatest minds in Austrian economics and financial strategy: R. Nelson Nash, Robert Murphy, Ludwig von Mises, Murray Rothbard, F.A. Hayek, Friedrich Bastiat, G. Edward Griffin, and many others. I’ve also benefited from practical insights from thought leaders like John Maxwell, Malcolm Gladwell, Ken Fisher, and Robert S. Compton. David M. Walker and God’s Holy Word, the Bible. From the school of hard knocks, I’ve learned this: the most productive financial strategy is never to put your money at risk. My holistic planning process is simple. It’s discipline, minimizing losses, putting lazy money to work, and reducing lost opportunity dollars. With a written plan of action, you’ll be far ahead of those chasing higher returns while paying fees to Wall Street. Warnings and Lessons The Honorable David M. Walker, CPA has warned repeatedly that the U.S. government will need to double taxes soon. Are you prepared? Are you fearful of losing money in your retirement account? My clients learn how to grow wealth without market losses or brokerage fees, avoid the Probate system, and reposition assets so they never have lazy money, and they have secured lifetime income while staying in control even after death.

Years ago, I also learned firsthand the fallacy of “buy term and invest the difference.” On paper it looks appealing—but in reality: Term insurance builds no equity and no certainty, and it is over at

the end of the term’s time limit. Few policies ever pay a claim. Costs skyrocket as you age.

The stock market can erase decades of savings in one correction. I believed in this strategy for a time in my life until it bit me personally. That experience forever changed how I have guided others with this

limited financial strategy. Personal Experience

In 1989, I purchased a Universal Life policy for just $50 per month. Like many, I believed I was making a wise, long-term investment. Over time, I increased my premiums, eventually paying $400 a month simply to keep the policy from collapsing. Then, in 2012, I received a letter that stunned me: unless I increased my payments to $1,000 a month, my policy would expire in two years. By 2016, the same company told me I’d need to pay over $2,100 monthly to maintain coverage until age 85. And because I was now uninsurable, I couldn’t even switch policies. My only option was to reduce the death benefit. This is the trap so many people fall into with “buy term and invest the difference” strategies. It is a “bull shift” philosophy. Chapter Five will explain the “Why.” Challenge to Conventional Wisdom Traditional thinking has failed countless families and will do so for many, many more. Much of what is taught in the financial services industry is based on projections, assumptions, and outdated models. Advisors often use “wisdom,” but I discovered it was simply groupthink. When I began questioning these ideas, I realized I was swimming against the current. Yet, as I studied further, the truth became clear—and liberating. There is a saver, a proven, and tax-advantaged way to build wealth that most of the 950,000 financial advisors in North America—and even the largest

insurance carriers—do not understand. They rarely listen to the talking heads above them. Chapter Five reveals the secret to becoming a true wealth creator through Privatized Family Banking (PFB) Infinite Banking, using properly designed, high-grade dividend-paying life insurance policy (from A+ Superior carriers), you can create tax-free income, liquidity, and generational wealth. Unlike government- sponsored retirement plans, the stock market, or CDs, this strategy gives you both living benefits and a legacy for your family. In the end of the chapter, you will know more about the real power of life insurance than most professionals in the industry—and you’ll see why Congress passed TERA, DEFRA, and TAMRA in the 1980s to restrict its use. Knowledge applied is wisdom, and this knowledge can change your financial future forever. Breaking Through Traditional Thinking For decades, financial “experts” have told us that permanent life insurance is a terrible investment. They encourage the “buy term and invest the difference” approach, while ignoring the reality of what the tax codes actually say. Regulators even frown on calling permanent life insurance an investment at all. But here’s the truth: when structured correctly, permanent cash value life insurance under IRC 7702 offers tax advantages that no other financial product can replicate. And for those saving in qualified retirement plans, few advisors are taking advantage of using the IRC 7702 and IRC 69D strategies alongside permanent life insurance. If your advisor isn’t taking advantage of these sections of the IRS code for your retirement planning, then you may be leaving one of the most powerful tools on the table. Knowledge, when applied, is wisdom. Why the Life Insurance Professional Is Different Let’s consider a sobering reality. A family’s financial future often hangs in the balance at one of life’s most painful moments—the death of a spouse, parent, or income provider.

Picture the scene: the pastor has finished the eulogy, and family and friends file past the casket. The CPA is there. So is their attorney. The investment broker and the property & casualty agent express their sympathy. Yet none of them can put money into the hands of the surviving spouse to keep the mortgage paid, cover tuition, or replace the lost income. Only the life insurance professional can do that. Only the life insurance professional can guarantee that the spouse and children remain in their home and that college dreams are not shattered, and that monthly bills continue to be paid. Only a life insurance professional can provide a survivor with the tax-advantaged income that prevents them from having to seek extra employment at the very moment when their world has already been turned upside down. In short, only a life insurance professional can guarantee that the surviving family can remain in the same world they knew before their loss. The Hidden Weight of Taxes Now let’s look at the other great threat to American families: taxes. Over a lifetime, most Americans will give up nearly 40% of their total earnings to taxes. Not just income taxes, but a steady stream of levies on nearly everything: Property taxes Gasoline and fuel taxes Sales taxes on food and clothing Utility taxes on electricity and heating Cell phone and internet taxes City and county taxes Marriage, penalties and more We pay taxes when we earn, when we spend, and when we save. In today’s world, you can even pay taxes when you die, through estate taxes and probate fees.

So, the real question becomes this: Where can a family find financial relief, protection, and tax advantages all in one place? The Answer: You should consider using the government’s Tax Codes: TEFRA, DEFRA, and TAMRA, 7702. A professional life insurance consultant can help you properly design a permanent life insurance policy that is not just about death benefits. It’s about providing these living benefits to a family: Tax-free income when it’s needed most Liquidity and access to cash value without penalties or fees Financial certainty in a world of constant taxes and economic uncertainty Legacy protection for children and grandchildren That is why life insurance professionals stand apart from all other financial advisors. While others can only calculate, plan, or give condolences, the life insurance professional can deliver actual financial

certainty—when it matters most. The Battle for Our Money Money! Money! Money!

Money is a routine part of everyday life. We use it, spend it, and save it— often without thinking about where it comes from or why it seems to lose value year after year. As the Federal Reserve Bank of Chicago once stated: “Money is a routine part of everyday living, and its existence and acceptance ordinarily are taken for granted. As our money sense that money must come into being either automatically because of economic activity or as an outgrowth of some government operation. But just how this happens all too often remains a mystery.” For most Americans, it is a mystery. Many watch helplessly as their purchasing power dwindles, while others hope the government will step in to provide security for them and their families. But relying on Washington to solve our personal financial struggles is a dangerous bet.

The Intellectual Battle Ludwig von Mises, the great Austrian economist, warned us: “No one can find a safe way out for himself if society is sweeping towards destruction. Therefore, everyone in his own interests must thrust himself vigorously into the intellectual battle. No one can stand aside with unconcern; the interests of everyone hang on the results.” We are in such a battle today—not with bullets or bombs, but with ideas, education, and financial understanding. The destiny of our children, grandchildren, and even great-grandchildren is at stake. I believe education must be our weapon of choice when it comes to the economic challenges of tomorrow. Ignorance is not bliss, nor is it an excuse. Education has no finish line—it is a lifelong pursuit. I know as I am continuing to learn and plan. The Tipping Point of Change Malcolm Gladwell, in his book The Tipping Point, observed that it takes only 10% of the population to alter the course of a nation. History shows this is true. Minority voices and movements have dramatically reshaped the landscape of America over the past fifty years. The question is: will the next wave of change come from those who understand the truth about money, banking, and government—or from those content to remain in the dark? The Problem with Our Money Few people truly grasp how the Federal Reserve Bank and its cartel of private banks control our money supply. A Short History of Banking Through the system known as Fractional Reserve Banking, they create credit and debt far beyond the reserves they actually hold. This process fuels growth in the short term but erodes stability, inflates debt, and destroys purchasing power over time.

But what exactly is Fractional Reserve Banking, and why should it matter to you? To answer that, we must first journey back in time to see how banking began. Banking as we know it started not on Wall Street, but in the shops of medieval goldsmiths. These craftsmen stored gold for others in secure vaults. Over time, they realized people preferred paper receipts—claims on their gold—rather than carrying heavy coins. Eventually, the goldsmiths discovered they could issue more receipts than the gold they held in reserve, betting that not everyone would demand their gold back at the same time. Thus began the practice of lending “money” that didn’t fully exist—a practice that became the foundation of modern banking. From those humble beginnings came the concept of fractional reserves and, eventually, the introduction of fiat money: currency backed not by gold or silver, but by government decree. “Too many people spend the money they haven’t earned… to buy things they don’t want… to impress people they don’t like.” — Will Rogers A Call to Awareness Today, we live in a financial system built on these foundations. Most people never question it. Yet, as history shows, systems built on illusion eventually collapse. If we are to safeguard our families and future generations, we must confront the truth about money and banking. And as Gladwell noted, it does not take everyone—only a determined few. If just 10% of Americans choose knowledge over ignorance, action over apathy, and freedom over dependency, we could change the financial destiny of our nation. This is where our journey begins. STOP! Slow down and really study this material. You owe it to yourself and to your family. I have clients who have read through the entire book several times and with each journey they have found additional golden nuggets of financial strategies to help them add to their circle of wealth. I encourage you to never stop learning! Once this material begins making sense to you, you should call me and let me take you to an even higher level of understanding concerning the secrets of creating wealth without taking risks or paying management fees.

Who Controls Our Money? Since the 18th century, Americans have debated who should control the nation’s money. Thomas Jefferson and Alexander Hamilton argued fiercely on this issue, and ultimately, President George Washington sided with Hamilton. Jefferson’s Position: Congress should issue free money, allowing the people and the free market to determine its value. Jefferson feared centralized banking power, stating that “I believe that banking institutions are more dangerous to our liberties than standing armies.” Already they have raised up a monied aristocracy that has set the government at defiance. The issuing power of money should be taken away from the banks and restored to the people to whom it properly belongs. Hamilton’s Position: The federal government should control the nation’s money supply. His vision led to the creation of the First Bank of the United States, which still stands today in Philadelphia. Later, President Andrew Jackson closed the central bank in Philadelphia in 1835, warning against concentrated financial power. But in 1913, things changed permanently when President Woodrow Wilson and Congress— under the influence of powerful bankers and his wife—created the Federal Reserve System. The Federal Reserve and Income Tax In 1913, two historic and controversial moves reshaped America’s financial future. Congress established the Federal Reserve Bank (“The Fed”) to issue fiat paper money. Congress passed the 16th Amendment, allowing the government to collect income tax. It’s important to understand: The Federal Reserve is not federal, not a bank, and has no true reserves. It operates as a cartel of private banks with massive influence over America’s money supply. This system benefits those who create crises, manipulate outcomes, and profit from the chaos.

The Reality of Banking Today – A Banker’s Warning A chilling statement from the U.S. Banker’s Association Magazine, 1924 reveals the mindset of financial elites: “Capital must protect itself in every way… We through the process of law, the common people lose their homes; they will become more docile and more easily governed… By dividing the people, we can get them to see themselves fighting over questions of no importance to us… It is thus by discreet action we can secure for ourselves that has been so well planned and so successfully accomplished.” Could this still be their game plan? Most Americans trust banks without fully understanding their structure. For example: Ask a bank employee about the FDIC reserve ratio, and you’ll learn how little actual cash exists in case of a crisis. Try to withdraw a large amount and see what happens. In a financial meltdown, your deposits legally become assets of the bank. Frozen assets mean you cannot access your money. You are only a creditor of the bank. So, in this reality, many people choose to keep emergency reserves in a safe place or in precious metals rather than relying entirely on banks. Warning Signs of Economic Apocalypse According to Dr. Nouriel Roubini (NYU Stern School of Business), America faces grave risks: Skyrocketing national and personal debt

Mass unemployment An aging population Decline of the dollar and runaway inflation A new cold war with China

Combine these with shifting demographics—such as rising single-parent households, cultural decline in absolute truth, and socialism creeping

into the minds of our youth—and you see why President Trump warned, “America is at war.” The real question is: Are you prepared? Understanding Fiat Money “Fiat” money is paper currency backed only by government decree, not precious metals. The U.S. has used fiat money three times in history: the Federal Reserve Note you may have one in your pocket; during the Revolutionary War (Continental Dollar); during the Civil War (Confederate Notes & Greenbacks). Since 1913, under the Federal Reserve by law, fiat currency is legal tender for all debts. Refusing to accept it cancels a debt in the eyes of the law. Yet if you tried to print it yourself, you’d be jailed for counterfeiting. This system leads to Gresham’s Law: “Bad money drives out good money.” It explains why Franklin D. Roosevelt confiscated gold in 1933 and banned citizens from using precious metals as money. However, today silver coins are considered legal tender. Today, the U.S. government is the largest employer in the country. As more citizens depend on government assistance, taxes rise on those who work and save—making it harder to build true wealth. Consider this sobering fact: of every high school graduating class, only 5% will retire financially independent without relying on Social Security or government programs. Do you see the difference between the 1957 one-dollar bill and the 1974 one-dollar bill? #1 is a Silver Certificate backed by a silver dollar. #2 is a Federal Reserve Note backed by thin air! What’s Backing the Money in Your Wallet? At the end of World War II, the United States emerged as the world’s economic superpower. With that influence, the U.S. pushed through a

new global monetary system at the Bretton Woods Conference in 1944, held in New Hampshire. Under this system, the U.S. dollar became the anchor for all other fiat currencies. Instead of stockpiling gold bars in their vaults, foreign central banks were encouraged—some would say compelled—to hold U.S. dollars as their reserve currency. At the time, those dollars were backed by gold, with an official exchange rate of $35 per ounce. That gold backing gave the global money supply a firm foundation. But as the Vietnam War drained U.S. resources, the dollar weakened. Foreign governments, doubting America’s ability to keep its promises, began cashing in their dollars for gold. By 1971, President Nixon and Congress ended the gold standard, making the Bretton Woods agreement null and void. From that point forward, the dollar was backed not by gold—but by faith in the U.S. government. Now consider this: Before the 2008 financial crisis, the Federal Reserve’s balance sheet stood at $871.9 billion. Today, it has exploded to more than $3.6 trillion—and continues to grow. What happens when banks begin pushing this flood of money into the economy? The answer is simple: the dollar loses value, and the cost of everything you buy goes up.

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