Understanding Your Wealth Foundations at GenerationalTBS.com

Imagine you’re like most hardworking Americans—let’s call you Alex. Alex has spent years building a career, raising a family, and dreaming of a comfortable retirement. But here’s the problem: Traditional retirement plans like 401(k)s and IRAs are riddled with taxes that eat away at your savings. You pay taxes going in, taxes on growth, and taxes when you withdraw. It’s frustrating! Externally, your nest egg shrinks; internally, you feel anxious about outliving your money; and philosophically, it’s unfair that the government takes a big bite after you’ve worked so hard.

At GenerationalTBS.com, we help real estate investors and business owners build wealth that lasts for generations using simple, smart strategies. You might hear us talk about things like “infinite banking life insurance,” “trusts,” and “tax-advantaged LLCs.” Don’t worry if those sound complicated. We’re here to break it down in plain language so you can see how they protect and grow your money with tax benefits, security, and steady growth.

Why Life Insurance Is Our Starting Point

We use life insurance as one of the foundations of your wealth plan, and here’s why it’s so special. With the type of life insurance we recommend (called “whole life” or “indexed universal life”), your money can’t drop below zero, no matter what happens in the market. The growth is tied to indexes that are carefully set, so you’re protected from losing it all. This safety net makes it a reliable way to build wealth over time.

On top of that, life insurance comes with big tax advantages. The growth inside the policy isn’t taxed as it builds, and if you pass it on to your family, they usually won’t pay taxes on it either. Plus, you can borrow against it when you need cash—think of it like a personal bank account. The interest you pay on these loans is often lower than the dividends or premiums you put in, saving you money and adding an extra layer of protection. This liquidity (easy access to your money) helps you avoid high-interest loans and keeps your wealth growing.

Oh yea, and the death benefit protects your legacy no matter what.

Infinite Banking: Your Own Money Machine

“Infinite banking” is a way to use life insurance to control your finances. Instead of relying on banks for loans, you build cash value in your life insurance policy over time. Then, you can borrow from it to buy property, start a business, fund investments or handle emergencies—all while earning interest on that money. It’s like having your own money machine that grows tax-free and is always there when you need it. This gives you security and flexibility, letting you invest in opportunities without losing control of your wealth.

Fun Math:
– A healthy couple each at age 65 sell a storage unit facility and nets $2mil. In the traditional world, they would pay $400k in taxes, leaving $1.6mil. They plan to live to 85, 20 more years and put it into a secure market index that yields 5%. The $100k in dividends are taxable yielding $80k p/yr, assuming that they would like to pass the $1.6 mil to their heirs.

End result:
Made $80k
Estate $1,600,000

Not bad, but there is A BETTER WAY:

– Same scenario, but before the sale, they create a Deferred Sales Trust. Within this trust, they purchase $2mil in life insurance that will pay the $400k off after they both pass that allows them to borrow from the policy at prime rates, say 5% while yielding an 8% return. The 8% dividend will likely cover the interest on the note and the premium. They borrow $100k a year from the life insurance policy (tax free) for 20 year (or more). The longer they live, the more they are worth. The estate at age 85, after both spouses pass, is worth approximately $3,870,000, consisting of the remaining DST assets after accounting for life insurance premiums, policy loans, admin fees and the tax payment from the death benefit after the couple paid themselves and additional $20k a year for 20 years.

End result:
Make $100k
Estate $3,870,000

That’s the power of GenerationalTBS!

Annuities: A Steady Income Stream for Your Future

Annuities are another powerful tool we use to secure your financial future, especially when the cost of life insurance is too much or an individual doesn’t qualify.

Think of an annuity as a contract with an insurance company that turns your savings into a reliable income stream, often for the rest of your life or a set period. You put money in, and it grows tax-deferred—meaning you don’t pay taxes on the growth until you take it out. This is great for retirement planning, giving you peace of mind with steady payments that can’t be outlived.

Annuities also offer security because they’re backed by the insurance company’s guarantees, protecting your principal from market drops. For real estate investors or business owners looking to reduce risk as they step back from active work, annuities provide a cushion. The tax deferral can save you thousands over time, and when paired with life insurance, it creates a balanced approach to growth and income, ensuring your wealth supports you and your family for generations.

Trusts: Protecting Your Legacy

A trust is like a safety box for your money and assets. It lets you set rules for how your wealth is managed and passed down to your kids or grandkids, keeping it safe from taxes, lawsuits, or bad decisions. By putting your life insurance or other investments into a trust, you ensure your family benefits while reducing the tax burden. It’s a secure way to pass on your hard-earned money, giving you peace of mind that your generational wealth is protected.

Annuities: A Steady Income Stream for Your Future

Annuities are another powerful tool we use to secure your financial future. Think of an annuity as a contract with an insurance company that turns your savings into a reliable income stream, often for the rest of your life or a set period. You put money in, and it grows tax-deferred—meaning you don’t pay taxes on the growth until you take it out. This is great for retirement planning, giving you peace of mind with steady payments that can’t be outlived.

Annuities also offer security because they’re backed by the insurance company’s guarantees, protecting your principal from market drops. For real estate investors or business owners looking to reduce risk as they step back from active work, annuities provide a cushion. The tax deferral can save you thousands over time, and when paired with life insurance, it creates a balanced approach to growth and income, ensuring your wealth supports you and your family for generations.

Tax Planning

Effective tax planning is essential to optimize the flow of capital within your trust and maximize wealth preservation. Our primary strategies include leveraging tax credits, establishing trusts, and utilizing tax-advantaged Limited Liability Companies (LLCs). A tax-advantaged LLC is a business structure designed to minimize tax liabilities while protecting your personal assets. Our team collaborates with experts to create LLCs that capitalize on IRS provisions, such as deductions and specialized tax treatments, often integrating with charitable funds to enhance savings. When combined with life insurance, these structures can accelerate wealth growth by reducing tax obligations. This approach provides a strategic, compliant way to grow your wealth while safeguarding against business risks.

How These Foundations Work Together

Think of these as strong foundations for your financial future—they stand on their own or empower you to invest in whatever excites you, like mutual funds, crypto, real estate, commodities, businesses, and more. Designed to protect your assets from lawsuits and excessive taxes, they also expand the marketplace by keeping your wealth growing and secure.

• Life insurance is a solid base, providing growth that never dips below zero, tax benefits, and easy access to cash through low-cost borrowing—giving you flexibility to invest anywhere.
• Annuities offer a dependable income stream for retirement, with tax-deferred growth and security, letting you diversify into other opportunities with peace of mind.
• Trusts safeguard your wealth for your family, adding an extra layer of protection against legal risks and taxes while supporting your investment choices.
• Tax Planning is an essential ongoing strategy to maximize returen. Tax-advantaged LLCs enhance your growth by reducing tax burdens and shielding your assets, opening doors to invest in markets like real estate or businesses without worry. Tax credit are available on many levels.

Together, these foundations create a flexible plan that grows your money, defends it from risks, and passes it down with minimal tax impact—ideal for real estate investors and business owners like you who want less stress and a lasting legacy. We rely on IRS-approved strategies to reward your hard work and risk-taking, benefiting both you and the economy.

Ready to see how this can work for you? Schedule a free consultation today and let’s build your generational wealth together!sultation today and let’s build your generational wealth together!