Archive for the ‘be your own bank’ Category

Business Testimonial for the “770 Account”/Infinite Banking

Saturday, August 30th, 2014
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JLM Wealth Strategies Testimonial


It’s quite amazing how our financial lives can change so quickly. After recently receiving a significant promotion and closing more new contracts in one month than my entire career, I was suddenly let go from my consulting job on a Friday afternoon in February. California is an ‘at-will’ employment state and anyone could have a day that ended like mine.

As I paused to assess the situation, I checked my cash flow, liquidity of investments, and nice-to-have expenses. First stop, where is my money and how quick can I access it? I was mid-way through a bathroom remodel, planning my wedding, and now my paycheck had stopped.


401K Hijacking


I had opted not to contribute to the company 401k, learning from previous corporate downsizing experience in 2006, when I had needed to access my reserves.  I learned the hard way that a 401k was not liquid when I needed it to be and it came with additional penalties for accessing it. By the time I got access to my own money, I had far less than I had contributed to begin with.

Government wins this one.


ESOP to IRA Barricade


Fast forward to the 2014 where my new former employer had provided a vested ESOP (employee stock option plan). But looking at these reserves, I was not allowed to touch it for two years following the end of our relationship. Even after two years, I can only roll it to an IRA and all the penalties that come with accessing an IRA early.

Employer and the government win this one.


Infinite Banking/770 Account Life Line


Just two years ago I met with John Montoya at JLM Wealth Strategies where I opened a 770 account to build my own banking system using the Infinite Banking Concept (IBC). I continued to fully fund this financial vehicle over the course of two years with a vision for funding retirement on my own terms.

Coincidentally, I had just hit my two-year anniversary the same week as my last day on the job. There I was holding in my hand my annual statement with dividend contributions, cash balance, and life insurance coverage. I realized quickly that I could take a policy loan, no questions asked, and take a breath to decide what the next best step for me would be without shutting down my lifestyle.

This liquidity, access to cash, allowed me to manage my fears, concerns, what-ifs, and give me the space to see all the possibilities in front of me, not just the unemployment line.

I win!


Infinite Banking/770 Account Power


With my IBC/770 Account plan, I had access to my money without penalties or taxes, stacks of paperwork, or an interrogation from a bank wanting to know every detail of my financial life. I discovered the proverbial pot of gold that I had created for myself with rules or restrictions limiting access to my own money. What a novel thought! So it got me thinking further: “What if I build my own business?”

No traditional bank in their right mind would give me a business loan while unemployed, but by “banking on myself”, I had immediate access to my capital to take time off, enjoy a long holiday, or best of all, the opportunity to build my own consulting practice.

At this moment, I realized the choice I had made two years ago to start my own privatized banking system had been the best financial decision I could have ever made.

No more reliance on banks, Wall Street, or government qualified plans to secure my future. The IBC/770 Plan provided me the opportunity to make decisions that put me in the driver’s seat.

I win!

By funding my IBC/770 contracts, I have funded my future. My bathroom remodel is on track. My wedding plans are in full force. My consulting business has a pipeline of $3M year-to-date. No fees, penalties, annoying bank questions or the dreaded unemployment line.  And the best part is that my money is continuing to grow even while I borrow against it for my business and other purposes.

I am now part of the success stories I had heard previously about JCPenny and Walt Disney utilizing their Whole Life contracts to successfully start or maintain their businesses when times got tough. This plan allowed me to take control of my financial future and I am hopeful my experience will resonate with others who are considering the Infinite Banking concept for themselves.

Thank you JLM Wealth Strategies for helping me design an Infinite Banking/770 Account plan that fit my budget and my vision of financial freedom. You’ve made sure my rainy day included a rainbow.


Kelly J. Vail
OTS Practices Management
Organizational Transformation Solutions, LLC

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FAQ’s For The Infinite Banking Concept AKA 770 Account

Sunday, January 19th, 2014
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F.A.Q.’s For The Infinite Banking Concept

 AKA 770 Account


1. How Much Income Do I Need To Have To Get Started?


The Infinite Banking Concept/”770 Account” can be utilized for individuals and families of nearly all income ranges.  That said, the more discretionary income you have (money left over all expenses have been paid), the more successful you will be with this strategy. Remember, it’s not how much you make, it’s how much of it you keep.


Traditionally, the Infinite Banking Concept (IBC) has been a strategy for the wealthy because there are no rules or restrictions limiting the amount of contributions like with a 401k/IRA.


 2. What is the purpose of the Infinite Banking Concept/770 Account?


At the end of the day, the Infinite Banking/770 Account strategy is about re-directing money that you would otherwise send to banks and instead put that cash flow back into your own private banking system. All families would benefit from putting their savings where it could grow uninterrupted for life instead of having to stop and start when life throws a curve ball.   (In more simpler terms, this strategy is tax-favored savings account with a death benefit attached to it.  I encourage you to think far beyond opening a 770 Account if you going to use just as a better savings account. Money in motion has far greater value than idle money. Hint: Think like a banker!)


Taking back the banking function you have given to your bank is a novel concept for everyone.  Why?  A lack of financial education has lead us to believe that banks are not only a safe place for money, but the source of financing to get us through life.  Outside of a checking account, there is no reason you should ever deal with a bank!


One of the best long-term benefits of the 770 Account/IBC is the tax-free death benefit which can help improve a families wealth class from one generation to the next. Without this generational transfer, most families are left no better off than their previous generation. The short-term benefits are tax-favored contractual growth and liquidity. Everyone can and should have access to such benefits.

3. How much does it cost to get started?


There is no upfront out-of-pocket fee to work with the 770 Account/IBC Authorized Advisor unless an advisor charges a fee. My company, JLM Wealth Strategies, does not charge a fee for design or implementation and instead is paid a commission by the financial institution the advisor chooses for the strategy.


The commission is based on the annual base premium which for a 770 Account/IBC policy is typically a 50-70% reduction in commission compared to financial professionals who offer a Whole Life contract without the proper design.  The correct design will allow you to accelerate the cash values from day 1 by reducing the commission of the advisor and re-directing that money back to your account.


It pays to work with an advisor who can not only teach you how Infinite Banking works to protect, grow and transfer wealth, but also who is not concerned about fattening their wallet at your expense.

4. What is the minimum needed to open a 770 Account/IBC contract? What is the maximum?


The minimum is approximately $250 per month.  We have clients who are putting well over $100,000 a year into their contracts.


These answers varies depending on the savings, cash flow, and assets of each person. It can be customized to fit your individual needs and wants.


5. Can the policy be canceled without penalty?


Yes, if you have the correct type of contract.  The only type of cash value life insurance policy that does not carry a surrender charge period is a Whole Life policy. Universal policies typically have a surrender period of 10 years or longer resulting in a surrender penalty if the contract is canceled before the surrender period ends.



6. Isn’t Whole Life more expensive than Term and Universal Life?

A 770 Account/IBC policy compared to a traditional Whole Life policy sold to the public has a much lower annual base premium.  This design minimizes the death benefit and, therefore, the cost of insurance inside the contract.  Not only is the death benefit minimized but the premium is guaranteed to never increase for the life of the contract.


(It is worth noting that since the death benefit is minimized, you are able to take dollars that would have otherwise supported a much higher death benefit and instead re-direct that excess money into a Paid Up Additions Rider which supercharges the cash value growth inside the contract.  This design creates the most efficient way to accumulate capital within the contract while also providing you with a lot funding flexibility.)


Term life insurance policies offer only death benefit protection for a set period of time.  There is no cash value to be accessed.  Ultimately, the lowest cost policy over the long run are not term policies. Less than 2% of all term policies pay a death benefit.


All universal contracts contain a term “chassis”.  Essentially, you are buying renewable 1 year term insurance coverage for the rest of your life.  The cost increases with age getting exponentially more expensive as you enter your traditional retirement years.  This is increasing cost component is one of the reasons why no type of universal policy is endorsed for the 770 Account/Infinite Banking strategy.


7. What if premium payments cannot be made because of job loss? 

In the event of a job loss, premiums still need to be paid. However, since the monthly required base premium is typically 50-70% less than with a typical Whole Life contract the public buys, cash value is building from day 1.  Instead of the being the slow growth contracts financial entertainers like Dave Ramsey and Suze Orman lambast on a regular basis, a 770 Account/IBC contract has substantial cash values available to offset the inability to pay premiums in the event of a job loss for many years.


In the event of a job loss, the owner of a 770 Account/IBC contract will have 3 options to pay premiums: borrow from the available cash value, surrender death benefit, or utilize the dividend to offset payment.


Whole Life locks in the premium and guarantees that it will not rise for the life of the contract. Each year, the cash value is guaranteed to grow. With use of a Paid Up Addition’s rider, the cash values will increase at an exponential rate allowing the contract to have a cash value equal to premium outlay sooner than with a traditionally designed Whole Life policy.


8. Is a health exam required to open a 770 Account/Infinite Banking contract?


Yes. A paramedical exam must be completed for the insurance company to fully underwrite your policy.


The exam is usually takes 20 minutes and can be scheduled at the comfort of your home.

9. I have poor health. Do I have to be insured to be the owner of a policy?



You can be the owner of a life insurance policy and not be the insured. For example, a family member like a mother, father, child, grandchild, sister, and brother.

10. Is there an age limit to start a policy?


Yes, it varies on the insurance company. Typically, life insurance stops being offered by the 80th year of life. In rare cases, age 85 is the final year it can be purchased.

11. Can a 770 Account/Infinite Banking contract be owned by a trust?


Yes. We can refer estate planning attorneys who specialize in living trusts and advanced estate planning scenarios.


12. Can the 770 Account/Infinite Banking contract be split between different beneficiaries?


Yes. Also, beneficiaries can be changed in writing by the owner after the policy has been issued.


13.  Can other assets/investments be re-positioned into a 770 Account/Infinite Banking contract?


Yes.  Careful consideration must be given before the sale of any assets and investments. 770 Account/IBC policies can be designed to incorporate large inflows of premium.


14. When you pay yourself back, are you paying yourself interest?


No because you are not actually borrowing your own money when you take a policy loan.  You are borrowing against the cash value you’ve built up in your 770 Account/Infinite Banking contract from the portfolio of the life insurance company.  Therefore, your money stays with the life insurance company where it continues to compound for you.  (Also, it’s important to note taking a policy loan with your cash value acting as collateral is also a non-taxable event.  Plus as a policy owner, you have the ability to set your own repayment schedule.  You are the banker.)


I would also add that “paying yourself back” or “paying yourself extra interest” are simply euphemisms to help explain the benefit of paying your policy loans back quicker.  Additional “interest” you charge yourself on loan repayments will simply accelerate the pay back of the loan allowing you to re-capitalize your contract quicker.  This allows you to take additional loans concurrently or again in the future as needed.


Once your policy loan is re-paid, your entire monthly loan payment can now be directed towards the Paid Up Addition Rider of the contract.  This strategy of “charging yourself more interest” is essentially a forced savings strategy meant to harness and reinforce the habit of saving money by capturing your newly created cash-flow from the paid back loan before it can be diverted and lost forever to newly created expenses.  This is referred to by Authorized IBC Practitioners as overcoming Parkinson’s Law.



15. What is the difference between a mutual based and stock based life insurance company?


A mutual-based life insurance company is owned by its policyholders. A stock-based life insurance company is owned by shareholders and makes decisions that can benefit shareholders before policyholders.


Only a mutual based life insurance company is recommended for the 770 Account/Infinite Banking Concept.




16. What is the difference between a non-direct recognition vs. direct recognition dividends?


A non-direct recognition dividend is unaffected by an outstanding loan. A direct recognition dividend is can be reduced if a policyholder has an outstanding loan.


The amount of the reduced dividend reduction varies by insurance company and can be different each year.


17. Does your money grow faster with one large policy or multiple policies?

The compounding effect of large numbers favors larger numbers. That being said multiple policies create a pool of money. When all aggregated together this pool of money will compound annually in the same manner as one large policy.


Start funding your banking system by what you can afford to save comfortably. You can add more policies later health permitting. Should health be an issue, you can look at being the owner of a policy on someone you have an insurable interest in.


18. I am considering a 529 college savings vehicle for my child. Are there any advantages to starting a 770 Account/Infinite Banking contract instead?


Absolutely, yes!


First, giving your child the gift of life insurance locks in their insurability for life. With more children being diagnosed with autism, Children’s Diabetes, and other heartbreaking illnesses, you have the ability to lock in a child’s policy while healthy giving them more financial options later in life.


Second, the money saved in a 770 Account/Infinite Banking contract is protected from stock market loss. An IBC policy provides contractual guarantees and predictable growth every year. 529 accounts will fluctuate based on the performance of mutual funds offering no such guarantees.


Third, if your child decides to use the money for something other than higher education, the money in a 529 account will be taxed AND penalized. The cash value in a life insurance policy can be used tax-free no matter what the funds are used for. Never underestimate flexibility.


Fourth, unlike a 529 account, a life insurance policy is not considered an asset under the financial aid formula colleges use thereby allowing your student to potentially qualify for more grants or aid offered by universities.


Finally, giving your child the gift of controlling their financial future by the time they are a young adult will be absolutely priceless.  Imagine if you could have had the benefit eliminating banks from your life at an early age?


19. Why didn’t I start this sooner?


Learn the answer to the most frequently asked question about the 770 Account/IBCClick here.

20.  How Do I Get Started or Open A 770 Account?


You can get started in four easy steps.  Please click here to learn how.


770 Account



Watch our new video at


John A. Montoya
JLM Wealth Strategies, Inc.
(925) 386-6639 Office
Bank On Yourself™ Authorized Advisor
770 Account



Request the free Bank on Yourself Report by clicking here

Be sure to mention “Free Report”.



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How Much Does It Cost To Get Started?

Wednesday, June 16th, 2010
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How Much Does It Cost To Get Started?

By John Montoya

June 15, 2010

This is probably the most common question I get asked after sharing with people how they can bypass the traditional banking system and create a banking system they can own and control, and therefore generate profits from a lifetime of financing. The answer is really simple. However, in order from someone to really understand the concept of Infinite Banking, I answer their question with a question so they can begin to wrap their mind around the concept. Here’s what I ask:

“How much does it cost you to save money now?”

It’s a pretty straight forward question but I never get the most obvious answer. The cost is really $0. For example, if you save $250 every month, there is nothing spent there. It certainly requires discipline to save money, but there’s no cost involved. According today’s article in the L.A. Times, there is $5.06 trillion dollars sitting in passport savings and money market accounts earning closing to 0%. That’s really quite astonishing on many levels.

The reason why our savings rate is increasing is because people are scared about losing money. I think a certain level of paranoia or call it caution, is a good thing considering the amount of risk people were willing to stomach in the past decade in order to chase rate of return. Being weary of losing money means people are being more rational about the risk/rewards of investing. If people start to take a greater interest on the return OF their money versus the return ON their money, I think this “lost” decade won’t have been for nothing. However, some could argue, and perhaps rightly so, that having so much money currently sitting on the sidelines is an extreme over reaction to the volatility the stock market has been experiencing since late 2008.

Whatever the case may be, people are saving money and I mean really saving money the old fashioned way. I don’t mean “investing to save” which is what most people do with their 401k/IRA contributions. True investing means that money is at risk of loss or has the potential for gain. Saving is simply socking away money which you know will be there when you need it. So many of us have been hypnotized into believing that money we put into our 401k/IRA’s is our savings, but there’s a reason why government statistics do not include qualified retirement contributions as part of their savings statistics. I believe it’s because this 401k/IRA money could be here today and gone tomorrow which we all know can happen with stock market investments no matter how savvy an investor one may be. Here today and gone tomorrow hardly implies savings you can count on when you need it.

So what has it cost the American public to save $5.06 trillion dollars; money deposited into accounts with the confidence it will be liquid should it be needed? The answer is nothing. Every dollar of that $5.06 trillion dollars is liquid and available for withdrawal.

It works the same way when you own and control your own banking system. It costs you nothing because ultimately what you will have funded the banking system with will include every dollar you saved. Furthermore, the longer you have the banking system, the more profitable it will become.

So what are the next most frequently asked questions?

“It sounds too good to be true. There has to be a negative or more people would be doing it. Why aren’t more people doing this and what are the downfalls, if any, to implementing this strategy?”

Stay tuned as I will answer this for you as well.

For more information about Becoming Your Own Banker or to attend a workshop, please contact us (925) 386-6639.

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The Truth About The Federal Reserve

Wednesday, May 26th, 2010
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By John Montoya

May 23, 2010

This will probably surprise you to learn, but the Federal Reserve is not actually “Federal” and it has no reserves. The existence of a central bank has occurred 3 times previous to our current one and has failed each time. The accepted opinion of the Federal Reserve is that it resides to stabilize our economy.  Unfortunately, this what most of us think.  In reality, the creation for our Federal Reserve was intended to protect the largest and most leveraged financial institutions in America and do so under the guise of protecting the American public.  Are you confused or intrigued yet?  Hopefully both.  Though the Federal Reserve has failed the public miserably, it has accomplished it’s intended goal of protecting commercial banking interests.  The results since 1913, when the Federal Reserve was created, painfully demonstrates the destruction to our economy and the erosion of the value of the U.S. dollar.

Since the Federal Reserve was created, it has presided over the market crashes of 1921 & 1929, the Great Depression of 1929-39, the recessions in 1953, 1957, 1969, 1975, and 1981, “Black Monday in 1987, the dotcom bubble in 2000 and recession of 2001, and the real estate bubble and Great Recession we are currently experiencing. And don’t forget …the 1000% inflation which has destroyed 90% of the dollars purchasing power since 1913. If that is not failure, I’m not sure what is. So don’t believe the mainstream press and politicians who will have you believe the Federal Reserve’s role is to stabilize our economy. Sure, it is one of the goals. However, it’s primary objective is to serve commercial interests. If you look up the definition of a cartel, then learn who was behind the creation of the Federal Reserve and how it operates, you’ll understand the Fed’s true objective. It sounds crazy. But it’s all been written about, but just totally ignored.

The “Fed” has the ability to stabilize the economy but it’s not its primary objective. The Fed in its current form was created to serve the interests of major commercial interests by allowing the money supply to become more elastic which creates the need for financing and ultimately, a reliance on large commercial interests.

There is no free …market discipline when the banking system is allowed to create money out of nothing versus having to make wagers against its actual capital. If banks were forced to take responsibility for it’s actions, it would mean bankruptcy for not managing money properly and not bailout by taxpayer money. Having the endorsement of the government under the guise of protecting the American public allows banks to take risks no other business is allowed to make and have those risks ultimately secured by taxpayers. The Federal Reserve was created to do just this. It ensures the stabilization of the banking industry and allows big banks to become even bigger (which of course means “too big too fail”. The reason why the economy is what it is right now is largely due to the market manipulation of the Federal Reserve and its ability to set interest rates and create fiat money that is no longer tied to gold.

FDIC is ultimately a hoax, too. The guise is to protect depositors, but all one has to do is deposit a $100k in multiple accounts in order to get around the system. Furthermore, the FDIC operates on it’s own fractional reserve system meaning it doesn’t have the money to secure all deposits. If banks, like life insurance companies, were regulated the same way, there would be no need for the “insurance”. FDIC ultimately protects the banks from taking large risks with the imaginary money. The loans created by banks from the money created out of nothing (fractional reserve system) ultimately is repackaged and repackaged (also called a “rollover”) allowing the banks to continue to earn interest (the life blood of it’s business) in order to avoid using the banks own capital to cover the losses, which by the way are losses on money that didn’t exist before! If the bank had to actually to use it’s own capital, it couldn’t possibly take on as much risk as it does. Eventually, though, the scheme ends and borrowers finally realize they’ll never pay off the loan. If this happens among too many borrowers, eventually the bank cannot be saved (the fraud is exposed!) and it leads to a bailout and the help of “the lender of last resort” which is the Fed and again the reason why it was created…To ensure that commercial interests can take these risks and if they don’t work out, pass it onto the American public.

The history of the creation of the Federal Reserve is an incredible read.

Allow banks to stand on their own two feet. No market manipulation and government backing. Eventually, money will be created from capital instead of debt. Banks would obviously prefer money created from debt since greater elasticity of money lowers competition for the banking industry and creates more opportunity to earn interest.

And know this, when business comes together in order control profits and drive out competition, it is called a cartel. The Federal Reserve is a formal organization, a union of banks, that agree to coordinate prices, marketing, and production of our currency and set rates. It is a cartel but cleverly disguised and the American public is none the wiser.

The more I learn about the Federal Reserve and the banking industry the more I come to think that there is reason why money isn’t taught in school. Ignorance is a very powerful weapon.

For more information or to attend a workshop, please contact JLM Wealth Strategies at 800-208-6141.

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Use the Infinite Banking Concept® To Grow Wealthy and Eliminate Uncertainty & Usury Forever

Thursday, September 10th, 2009
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Learn more about the Infinite Banking Concept® by watching the videos below!

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Infinite Banking Concept®



IBC (Infinite Banking Concept) also known as Bank On Yourself® under a different trademark has been one of the best financial secrets for decades.


It’s a fundamentally sound philosophy that frees you from the Wall Street/Banking system that holds everyone captive for life.  Best of all, it’s surprisingly simple to implement.


The Infinite Banking Concept® has numerous benefits, including the fact that it’s a private non-qualified plan, it’s tax-favored under IRS tax code 7702, it’s protected from lawsuits, and it safely grows your money even when you decide to deploy it somewhere else!


In short, the Infinite Banking Concept® is like having your own bank. You can access money from it anytime you want. You can spend your money however you like and you can pay yourself back whenever you want.


You’ll never have to pay interest to another financial institution again.

No more credit checks.

No more loan applications.

No more sleepless nights wondering if your retirement plan is on the right track.


When you consider how much money the average person “throws away” by paying interest and fees to banks, credit card companies, and other finance companies, you can see that the ability to use your IBC policy as your own financial system is a benefit that could easily be worth several hundred thousand dollars over the course of a lifetime.


Kelly’s Infinite Banking Success Story directed by Doug Orchard

Watch the videos on on our site and then contact JLM Wealth Strategies to request more information.

NBA Hall of Famer, Rick Barry from Plugged In Productions on Be Your Own Banker.

John A Montoya, Founder of JLM Wealth Strategies began his career in financial services in 1998, and is one of only 200 financial advisors in the country who have successfully completed the training program required to become a Bank On Yourself® Authorized Advisor.  John also is an IBC Practitioner with the Infinite Banking Institute and holds a B.A. from the University of San Diego. In 2013, John co-authored the best-seller The Secret to Lifetime Financial Security.  For more information about the Infinite Banking Concept®/Bank on Yourself®, please visit and enter John’s advisor code: JM66.

To request a no cost analysis:

(925) 386-6639
CA Life Lic.#0C42222
DRE #01390017


Click here to read FAQ’s

Infinite Banking Concept/770 Account





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