Private Reserve Strategy

Private Reserve Strategy is a strategy designed to help develop or improve one’s financial position by avoiding or minimizing unnecessary wealth transfers where possible, and accumulate an increasing pool of capital providing accessibility and control.

A fundamental key to the Private Reserve account is that the money must be accessible through collateralization. Collateralization means you have money you can put up to allow you to use someone else’s money. This allows you ‘uninterrupted compounding’ of your money, which is critical to its growth.

You finance everything you buy. You either pay interest, or you give up the ability to earn interest. It is not just what you pay for an item but how you pay for it. See Paying Cash and Paying Cash Chart PDF’s below.

Three ways to handle major capital purchases

  • Debtor – No savings/earns no interest/pays interest
  • Saver – Saves/earns interest/pays cash (loses interest)
  • Wealth Creator – Saves/compounds interest/collateralizes purchases

Problem with Debtor

  • Obligation on future earning
  • Lose capital to purchases and financing costs forever
  • Debtor to the Creditor
  • Loss of Control

Problem with Paying Cash

  • Obligation on future earnings – must save the money
  • Must drain the tank to make purchase
  • Must pay annual tax (leakage)
  • Interrupt compounding of your money
  • Paying Cash PDF | Paying Cash Chart PDF

 How to be a wealth creator

  • What if you could make the purchase without ‘emptying the tank’?
    This would allow your private capital reserve account to continue to employ the benefits of compounding – minimizing the associated lost opportunity costs
  • If don’t use my capital, whose do I use?
  • You collateralize a loan from a financial institution. Securing the loan by pledging a portion of your Private Reserve.
Note: You can use any financial institution but some are better than others due the payment structure. The goal of this strategy is to increase long-term efficiency by leveraging the fundamental differences between amortized and compounding interest.

Ideal Characteristics of a Private Reserve Account


  • Tax deferred growth
  • Tax-free distribution
  • Competitive return
  • High contribution levels
  • Deductible contributions
  • Collateral opportunities
  • Safe harbor
  • No loss provision
  • Guaranteed loan option
  • Unstructured loan payments
  • Liquidity, use and control
  • Additional benefits

Choices include:

  • Certificate of Deposit (CD) – five (5) of above
  • 401(k) Qualified Plan – four (4) of above
  • Permanent Life Insurance – eleven (11) of above (all but deductible contributions)
  • Margin Account on Stock Portfolio – four (4) of above
  • Real Estate Equity (HELOC) – four (4) of above

It looks like a properly structured cash value permanent life insurance policy would work best as a Private Reserve account.

Private Reserve Strategy White Paper PDF

We can provide you with three short 10-minute videos for further edification

  • Private Reserve Strategy
  • Cash Flow Model
  • 10-Minute Lesson on Life Insurance

Here are eight ways to free up money for your private reserve account. This will allow you to create your account without spending one more dime than you are spending today.

Here is how another agent described it

Private Reserve
Shouldn’t Your Money Be Working As Hard As You Do?

prsWith the Private Reserve Strategy, it does. It’s a simple idea with very substantial benefits. You see, it lets you build wealth in your own Private Reserve account with a major, licensed, A+ rated U.S. financial institution.

Your money would then be working for you—365 days a year!

Paying cash or financing major purchases?
Now there’s a better way!

If you’re used to paying cash—or financing—major expenses like a new car, braces for the kids, a college education, a daughter’s wedding, kitchen or bathroom remodeling, a new deck, or any other major purchase, you shouldn’t. Because there’s a better way.

Introducing the Private Reserve Strategy.™

The Private Reserve Strategy is a time tested, proven wealth-creation strategy. It’s designed to strengthen your financial position by accumulating an increasing pool of capital that you can access and control.  It lets you leverage your cash flow to maximize return. When you need to make a major purchase, the Private Reserve Strategy is the solution—instead of using your cash or financing at high, variable interest rates.

It’s never too late to make a smart decision.

But the sooner you start, the better off you’ll be. The Private Reserve Strategy is primarily designed for individuals and families, investors, and independent business owners. Smart people like you, who want their money to work for them.

Your Private Reserve Account™ offers these advantages:

  • Tax- Deferred Growth
  • Safe Harbor
  • Tax-Free Distributions
  • No-Loss Provisions
  • Competitive Rate of Return
  • Liquidity and Availability