The Capital Warehouse Story:

The term “Capital Warehouse” was developed as a description for the strategy of using a permanent life insurance policy to earn additional returns without changing the way you invest in alternatives. In the process of our routinely working with High Net Worth Clientele, we further refined the offering through the extensive due diligence and market research by top legal, tax, and insurance professionals. When you get a Capital Warehouse, it isn’t just a life insurance policy. It isn’t a “Be the bank”, “Never-Ending Banking”, or “Money-Flow Banking”. (The names have been changed to generic terms to protect the integrity of the trademarks.)  What it is, is a very intentionally crafted strategy, that meets very specific and necessary benchmarks, to give you, the client, the absolute highest likelihood of succeeding.

 

Some of the key metrics that a “Capital Warehouse” meets are: (Note: Many policies appear similar on the outside, but what matters is the design under the hood.)

  • A-Rated Life Insurance Carriers

    • Important because the best rates come when lenders can lend against A-rated paper.

  • Carriers with a strong presence in the type of life insurance used for the strategy.

    • Be it Whole Life or Indexed Life, you want a carrier backing your policy that has a strong incentive to maintain the block of business surrounding your type of policy.

  • Carriers that allow for high early cash value (With riders or design features)

    • The more cash you have EARLY, the lower your opportunity cost.

  • Insurance policies with low expense ratios (Watch how those agents design the policy!)

    • This is extremely important. Every .5% of expense ratio that is added to the policy, can lower your likelihood of beating a savings account by close to 10%.

  • Attractive lending terms (Efficient lending is a necessity to the long-term success of your plan)

    • Just like expense inside the policy, extra expense to borrow against the policy also reduces your likelihood of success.

  • Insurance policies that capture upside and limit downside.

    • This can be done with both Whole Life and Indexed Life policies.

  • The entire strategy works when you stress test it. (I can’t stress this enough.)

    • You should be able to see the strategy work if you borrow all your money out of it, if we go through the great depression, or if we go through a 1980’s type interest rate environment. Any Capital Warehouse imitation policy set up without doing so, is doing you a severe disservice.

Remember: You should see a clear path to how any money play will have a high likelihood of making YOU more money in the future. If you don’t, you shouldn’t invest money in it. Plain and Simple.

 

Any plan that bears the Capital Warehouse stamp of approval has been extensively stress tested to ensure you have the absolute highest likelihood of succeeding. (Ask Sam for how you can get the CW stamp on a policy you already own or are buying from another group. We love the strategy (and this community) so much, we don’t care where or how you get involved with it, we just want you to do it right! Seriously, quit buying crap, and let us help you. We offer a paid

service where we design the policy and let someone else get paid. If we don’t save you more money than you pay us, we will return every penny to you. There is no excuse for a Capcon community member to ever buy a crappy policy again.)

Why do we care so much?

We love the strategy and the industry. The challenge is separating the quality designs from the garbage. We have seen firsthand the difference proper design makes when it comes to how well things perform. That is why we are doing our dead-level best to shine a light behind the curtain of the entire industry.  We’ve been in the Capitalism community here for 3 years now and love the people. We feel that this is our mission to contribute this information to this group of innovators who have come together so selflessly to edify one another.

How to apply the Capital Warehouse strategy today:

Here is the summary of how Capital Warehousing fits into the architecture of what we believe you should be doing to prepare for the economy of the next 5 years.

 

If you agree that we are due for a correction in the economy in the next 3 years, then you need to start preparing for it. We don’t mean to simply prepare to weather the storm, rather, we want you to prepare to use the downturn to grow your wealth rapidly with significantly less risk.

Here is the basic blueprint we think you should follow:

Step 1: Acquire a Capital Warehouse

 

     The Capital Warehouse is a base asset that grows at an average rate of 6-7%. This makes sure that you have a portion of your                 balance sheet growing 24/7/365. The funds inside your CW are 100% yours and can be accessed at any time

 

Step 2: Identify and acquire cash flowing assets

 

     If you must buy assets in today’s economy when they are not on sale after a downturn, buy assets that have cashflow components           you are comfortable holding on your balance sheet for 5-10 years. If you do this, you have time to wait for the equity value to                   recover from a downturn while you continue to receive cashflow. You can leverage your Capital Warehouse to buy these cash                   flowing assets. This lets you earn two returns on the same dollar.

Step 3: Expand your base, cash flow, or branch into speculation. (Based on the current economic environment)

 

     Right now, we think that clients would be best served to have 30-50% counter-cyclical assets. The purpose of this, is that during a           downturn in the cycle, you can trade or leverage NON-cyclical assets for cyclical assets. This means you can trade a premium priced       asset for 1 or more value priced assets. This is the simplest and most effective way of growing wealth with the highest likelihood of         success.