Today’s Generational Wealth Solution

If you were to invest in an older member of your family and he/she allowed you to do so to create the ultimate family legacy, what investment would be used?

Life insurance.

Life insurance is the perfect solution for family generational wealth creation. It is a contract the family CONTROLS. The cash value and the death benefit grow tax-deferred and tax-free. It is protected from creditors and passes outside of probate. Any number of family members can contribute to the premiums.

While once visiting the zoo with his grand kids, Leonard Renier notice every animal display had something in common. Each one of them had a plaque that said it was sponsored by a family or family foundation, a.k.a. generational family wealth. What did these families do? The revelation hit him like a freight train! These families leverage the least amount of wealth by investing in their families!

On the way home from the zoo, one thought kept echoing in his head: rich people think like rich people; poor people think like poor people. He asked himself one question. Would someone want to create wealth for their family if they knew they didn’t have to spend one more dime than they were spending now? The key, he thought, to all of this is to consider the family, the whole family, as a financial tool.


Financial success is about having CONTROL of how you are using your money to create wealth.


In the old days, Renier reasons, the family had control of the family farm. The family could affect the growth and future production of the farm they owned and controlled. Investing in stocks and mutual funds do not provide the ownership and control needed to pass on wealth successfully. You are affected by too many elements out of your control, such as tax, investment risks, creditors, and luck. Yet, traditional advice has reinforced this as the only way to create wealth.


Using Leverage


In his book, The Family Legacy – The Generational Solution, Renier, in his 60s, says for the generational solution to work, your family must be aware that this opportunity exists. He gathered his family together for a family dinner. After dinner he told them he wanted to seek out every opportunity they had as a family to create real wealth.


The goal was to create the most amount of tax-free wealth without any additional money being spent.


He paused a second and told them: “In the old days, all of the family members would work together and invest all their time and money to increase the wealth of the family farm, knowing they would someday own it. It would be theirs. They did not do this out of greed, but out of love for the family. This was the generational solution back then. It wasn’t perfect but it was more than what most people will ever have available to them in the world we live in today.”

Renier pressed on, “Rich people think like rich people; and poor people think like poor people. The difference between the two is that rich people insure and guarantee that their wealth will be passed on to their families tax-free. Well, the truth is most of us are not rich. I would like to pass on as much wealth to you as I possibly can offer you.”

It was quiet at the table, and he said, “The opportunity to accomplish this is standing right in front of you. I want to offer you the opportunity to invest in me. I want to do this out of love, as a family legacy for you and my grandchildren. This is the last gift of love I can offer you.”

He told them they could do this without spending any more money than they were already currently putting away for their retirements. This would be their investment in the family. A family needed a vehicle that would pass the money, in the most efficient way, to the members of the family tax-free. So, his 3 children, who were in their 30s, funded a life insurance contract on his life with the highest paying death benefit, using the least amount of premium to fund it. If he lives another 10 years, and the death benefit was paid (ie., he died), the compounded annual growth rate (CAGR) on their investment would be 36% tax-free! If he lives another 20 years, the CAGR would be 18% tax-free! Even at the age of 80, his family legacy would create about $1.7 million for them tax-free, upon his death. His children would continue to fund the policy and have access to the values in it while he was alive.


Today’s Generational Solution


The value of life insurance cannot be overstated. The generational solution is simple in nature, yet dramatic in results. Life insurance is the best way in a family setting to create and fund a family legacy, and at the same time reduce future taxation down to zero. Life insurance also addresses the issues of a financial future that is filled with the uncertainty that younger people are facing today and will continue to face in the future. This is not a trendy solution that fades as markets change; rather it is a solid foundation for creating wealth in the future. It dramatically reduces the amount of risk and eliminates future taxation that you would typically be exposed to. It is also possible that all of this can be achieved without spending a nickel more than what you are spending now.

With so many changes simultaneously affecting the markets today, not to mention higher taxes, and along with the age wave of boomers retiring and thus, withdrawing funds from the market, it is not the same for this generation, as what their parents relied upon for their future.

Now, imagine Renier’s idea of creating future wealth in a family and having it pass tax-free.

Imagine, Renier himself, taking his last breath knowing his family would know their future was financially secure.



The Wise Banker is devoted to bringing awareness and understanding to Infinite Banking and helping you unlock your financial potential.

© 2020 The Wise Banker. All rights reserved.


The Wise Banker is devoted to bringing awareness and understanding to Infinite Banking and helping you unlock your financial potential.

© 2020 The Wise Banker. All rights reserved.