June 17, 2023 • 24 mins
Charles DeLadurantey has provided consulting services to several verticals including manufacturing, healthcare and supply chain firms. In 2019, he became a Partner with Private Family Banking. His mission is to help individuals and businesses understand the options for wealth building, retirement pension systems and private financing available through uniquely designed products with an underlying base of life insurance and annuities. Chuck and Michelle, his wife of 48 years, live on his ranch in Luling Texas where they raise beef cattle and enjoy hosting fun family events for their children and grandchildren.
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Episode Transcript
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(00:00):
This week on the Art of Improvement, I'll be speaking with Charles de Latarante.
He is a partner with Private FamilyBanking. How is your money doing?
Charles is a consultant that works withclients to facilitate breakthrough change and they're
thinking about their cash flow and bankinghabits. My conversation with Charles is coming
up next on the Art of Improvement. Thank you so much for joining the
(00:27):
Art of Improvement today. I feellike I'm talking to a dentist. I
know I have to go, Iknow I have, you know, to
make sure everything's okay, but Istill fear it. I'm sorry to introduce
you that way, Charles, butCharles de Latarante is a partner with Private
Family Banking. Hi, Charles,Hey, good morning, Karen. Was
(00:49):
a creating chill. Do you knowwhat I mean? I mean I when
it comes to money, whether you'retwenty or whether you're sixty, if you
have been prepared, it's always somethingthat's a little bit scary. And then
on top of that, what's goingon in the world today, it seems
even more difficult to understand. AmI all by myself? And that right
(01:12):
now you're not and you're not.In fact, many people are a little
a little shaky, a little afraid, and you know, we don't make
good decisions when we make them withfear. So I'm kind of here to
bring some balance perhaps today, Iknow, I hope so and so.
At Private Family Banking Partners, wesort of an alternative way to addressing what's
(01:34):
right before us. And this isanother banking crisis, you know, and
to put a little bit maybe toframe that calm into it a little bit.
This is really nothing new. Imean, think about it. You
and I have lived long enough tosee several of these cycles. Well if
you look at history, you know, starting back with the central bank efforts
in the late eighteen hundreds with AndrewJackson and all the history behind that,
(01:57):
which is great history, by theway, great drama, absolutely leading up
until nineteen thirteen when the Federal Reservewas created and so forth. The whole
idea of a central bank and fractionalreserve banking, all these complicated terms.
That's what sort of makes that it'sso much noise right to understand it.
And so currently what we do haveto deal with is there is talk about
(02:19):
making a little more difficult to getto your cash. So you know,
though we have the federal old FDIC, they call it the Federal Deposit Insurance
Corporation. Well, you know,most of us don't have one hundred or
two hundred thousand in cash in thebank. But they're really talking about restricting
withdrawals and so that could affect theaverage person too, Charles, it makes
me I don't want to seem likethe person with the tinfoil hat on,
(02:44):
but it does make me afraid whenI hear about the government. I know
FDIC is the government, right,right, but it makes me afraid when
I start seeing banks joined together andthen FDIC see coming in and saying,
you know, this is the wayit's going to be, We're going to
(03:05):
change to no cash, where itmakes me feel like, um, there's
a push to have the government overlookevery penny that we make. Well,
and again, that is an overarchingconcern for most people. You know,
what about a digital currency, youknow what if this it does seem psychologically
that they're using intimidation, fear uncertainty. You know what's it called fear uncertainty
(03:29):
and doubt. You know FUD.You know, FUD can be a big
factor in people's life. We've hearda fomo, but I would just learned
fud yesterday. Yeah, I'm goingto use it today, right, But
anyway, it sounds like a funnyterm. But you know, whether we
go to a cryptocurrency or an electroniccurrency, digital currency, I still think
there has to be a medium ofexchange, right, Every economy needs a
mechanism if it's regulated and oversaw.I mean, we're gonna have to tolerate
(03:53):
that. A few will. There'scameras everywhere today. I don't know that
this this does introduce a level ofintrusion, but I don't know that they're
per se a way out of thatonce we hit an ultimate digital currency universally.
But in the meantime, we canthink differently, you know, to
your theme of the art and improvement, you know, stress, concern,
crisis, change points in our life, they require an improvement mentality. If
(04:16):
we just run from it and webury our heads, we think it'll all
go away, that's probably not agreat idea. So I think that my
encouragement would be to find a wayto think differently, and we kind of
bring that and when we get maybeto the next steps in this little discussion
and go through some of those steps. But what people really want when it
comes to their cash, when itcomes to their money, is they want
(04:38):
certainty, they want safety, Sowe call this a safe money system.
They want access, right, youwant access to your money. You don't
want to be locked out. Andthen you want to be able to leverage
your money properly when you want tomake investments or you want to make you
buy real estate, investing or whateveryou might do. And so with our
system, we provide all of that. And we work with individuals, families,
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and we work with small business aswell. Okay, so the name
you said, you're a partner withPrivate Family Banking and you do help families
and small businesses. But what isit that you do? Right, So
this comes from a fellow named NelsonR. Nash. Nelson was from Birmingham,
Alabama. He passed away about threeyears ago, and he had an
(05:19):
epiphany, I would tell I woulddefinitely call it epiphany. He was in
the real estate market. If youand I remember, back in the eighties,
when the interest rates went to fifteensixteen, I closed out a house
at sixteen and a half percent andthat was okay, yeah, I know,
and you know, and you know, when the money supply inflates,
prices go up, and it's justthe way, so you know, it's
all about relative difference. But atthat sent my monthly payment like amazing for
(05:43):
the house always, you know,compared to what we were looking at two
point seven five and three point twofive interest rates unheard of, right,
So younger people today don't realize thatwe've been through these cycles and things do
change. While he went through thatchange like I did back in the eighties,
and found himself with some twomberland.He was a forester, but he
was over extended in his loans.He had some other real estate, and
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he just really dropped to his kneesand prayed and said, I need a
way out of this. Lord,I don't know, so lo and behold
he had been in life insurance fora long time and it hadn't occurred to
him. He had all this cashvalue which is called cash value whole life
insurance, and he had ready accessto that money. And so out of
that he created enough cash to payoff the loans, get away from the
(06:27):
twenty percent interest that was going on. Then if you remember money markets were
paying seventeen I had money in themoney markets back then, and so lo
and behold. The epiphany was,wow, wait a minute, if I
could do this with these policies Ihave. What if we redesign these and
supercharged them with a front end cashaccumulation called cash value. And so what
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we do is we work with twoor three insurance companies. We sell a
very unique custom design for the individualeffect, have clients all over the country.
We sell in all fifty states,and we try to set find out
what they want to do. It'sall about their goals. It's not about
selling them life insurance per se,though that's an add on. We all
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need some life insurance, especially ifyou're raising a family. However, what
they really want to do is puttheir cash in a safe place and have
access to it and protection from creditorsstock stock market volatility gets out of the
way because there's a guaranteed portion,and then there's a dividend portion. So
it's a dividend paying a policy witha mutual insurance company. As a policyholder,
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you're an owner of that mutual insurancecompany enjoy the dividends. So kind
of that's the basic framework. Butwhere the banking comes in. What people
don't realize, is we all dobanking right. Money comes in, money
flows out. A lot of usdon't write checks anymore more, but we're
clicking away and we're automatic paying,and money's flowing in and out of our
lives. So you think of aninvestor. He or she may take ten
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or twenty percent of your money,put it away and use that as your
investment account. Maybe you could dothirty percent. I don't know to how
good you're doing on your cash flow, so you may put it in the
market, and then you're subjecting yourselfto these big market swings. Think about
what if you could put all ofyour cash through a system, a banking
system that you own, you havea contract with, and over your lifetime
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you have an opportunity to earn unended, uninterrupted compound interest on all the money
that flows through your life. That'sa big idea that sounds dreamy. It
does, and it's possible. Wehave thousands and thousands of people doing this.
You know it's banking. Initially,your thought is it's not sexy,
right, but it's really sexy whenyou're forty years old and you're already a
(08:39):
millionaire because of decisions you've made rightand so the dumbest question I can ask,
but one that I have to ishow early can you start? How
young can you be? And thedumbest question of all, and the one
that applies to me is it toolate? Is never too late? Oh
that's a great question. I startedat age sixty six, believe it or
(09:00):
not. I love you. Iturned seventy in August. So here we
are may so that'll be soon.So I'll be a septogenarian soon. But
I saw this concept twenty years ago. I was a consultant. I was
a road warrior. I was generatinga lot of cash. A guy came
to me and said, hey,you need to look at this. You
know what I did in two thousandand two thousand and one, I bought
(09:22):
investment real estate. I bought avacation home. Yeah. Yeah, I
end up having to do a VRBOjust to keep it afloat, and I
almost lost it in the O eightcrash. Instead of doing what we're talking
about today. I have goosebumps becauseI did lose my house in two thousand
and eight. Yeah, I meanit was I was like shot. I
know, so I no, it'snot too late. We have seventy some
year old people doing this. Igot in in sixty six. I've capitalized
(09:46):
my I have three different accounts,if you will, three different policies,
one on me, one of mywife. I have a twenty year daughter.
Your old daughter still at home.You said you have kids in twenty
years old. I have twins,got it? Oh? Perfect? Yeah,
And so I bought one on hertoo. So I so I could
put a lot of so in fouryears. I started this four years ago,
having seen it twenty years ago.I have almost two hundred thousand in
there myself, and I use thatto do investing. Now. I love
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that. I'm not in the market. I'll do real estate. I'll do
some rental. Really, I thinkthe market right now. And I'm not
a prophet or the son of aprofit. I'm also a realtor. You
don't need to explain. I meanyou can understand totally. So I've done
well there, and I got atthe upswaying and we did some leveraging,
but I didn't get ahead of myself. So we're doing well there. But
in the meantime, my money,this two hundred thousand for example, or
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more for a lot of people issitting there growing every day. It's uninterrupted.
You have a guaranteed growth rate notsubject to market volatility, and that's
by a contract you have through thisWhole Life insurance Charles, Before I go
any one second further, can youtell people how to get in touch with
you? Right? So, thebest way you can email me at Chuck
(10:52):
at Private Family Banking dot com.That's huc K Chuck at Private Family Banking
dot com. Or you can textthe keyword banking to three two one four
two one five two one three andyou'll immediately get a text. You'll get
on my digital business card and therewill be a short video there and all
(11:13):
my contact and my calendar booking calendars. So but if you email me at
Chuck at Private Family Banking dot com, I'll send you a calendar invite.
I sent up a thirty thirty minuteintroductory call. I'll send you a free
book. In fact, my book'sjust coming out. I'm working on a
working title and it's already to theeditor and it's going to expand on these
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concepts and bring them up to date. This has been around for a while,
utilized by a lot of people.But that's how people can't get a
hold of me. So, um, peep, small businesses, families,
everybody's hurting right now because the economyhas changed. And it sometimes confuses me
when I hear about the unemployment ratebeing so low, and then the more
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I talk to people, I thinkit may be because as people have taken
on a second job or a sidehustle. Yeah, so how does it
fit if you're like a regular personthat had a job that suddenly has to
get another one just to make endsmeet? How does that person fit into
your plan? Oh? Is iteven possible? Oh yeah, that's a
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perfect question. So this is wideranging. So let's start with that.
Joe Joe, Joe regular, Joeregular. Yeah, and so, and
I'm not Joe regular too. Imean, I'm still I'm still whacking away
at it every day. I'm tryingto do great things. So, um,
really, to begin to store upsome capital, as long as you
have some W two or a businessincome ten ninety nine income, a way
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to show that you can pay apremium. Basically, as long as you
have some income. We like tostart people out to really get the cash
going about five hundred a month.So if you can't find that for no
charge at all, I provide budgetingcounseling to get you set up for success.
So if you're just getting art,your young person, you need to
get control, you know, sortof the not necessarily a debt free mentality,
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but a debt reduction mentality where wego through and we'll do a debt
snowball reduction with you no charge atall, to get you ready to get
into this. If you're ready now, I've got twenty four year old couple
out of California. They just startedout. They have two jobs. They're
teaching school, and they were ableto get started a thousand dollars a month
and put quite a bit of moneyin upfront and they're doing great because they
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saw this. And the young manhe just came alive with us. I
sent him a book. He readit and he said, where's this been
all my life? And you thinkabout it back to that one statement.
Would you rather have your money inthe market ten percent or twenty percent of
what you are making subject all thatvolatility, or do you want to have
all of your money eventually as weset this up, because maybe you started
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five hundred a month, then wework you up and we figure out how
to get your budget adjusted so youcan flow more through there because you can
always borrow back against it. It'slike any other asset. This is a
horrible question, but I need toask. Okay, So here is a
you know, Joe Regular in hissixties and everything's going great. His wife
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is on the plan, his daughteris on the plan. But Joe Regular
dies. What happens then? Doesthat? Do you have to have something
set up to where this goes toyour family? That also, yes,
so we do so within the policyyou have to name a beneficiary and so
it flows tax free. So manyof our policyholders are one to two three
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million dollars in death benefits. Sothere's also inside the policy there's a long
term care policy included. There's acritical illness and there's also life threatening illness.
That are all writers that we includein that package of goods, if
you will, And so there arelots of good features, including the lending
and the ultimate death benefit like anylife insurance policy. So you know,
any person raising a family or someonewho wants to pass on a legacy.
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We have a lot of people intheir sixties that they're thinking about the next
generation and they're grand children, sothey'll buy policies on their children and grandchildren,
not necessarily themselves, because the olderwe get, you know, maybe
the more expensive it is, andsometimes we have health issues. I didn't.
I was able to go in fullforce at sixty six, but some
people that, well, if youare not quote unquote affordably ensurable, you
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have other people any a business partner, a wife, you know, kids
that are still in your home,kids that you help support, and especially
grandchildren and then set them up forthat next generation. It's so funny because
it sounds so simple and it soundsit makes so much sense. But in
our every day lives sometimes that's thelast thing we think about. It's the
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last thing that we take care ofwhen it comes to life insurance or our
finances. I mean, I'm nottalking about everybody, but there are those
like myself that you know, lifehappened and it's gotten a way for me.
And so going back to understanding bankingand family banking, it's not like
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you need to know a lot ifyou're going to contact you Charles to say
you're going to help me along theway. Is that right? Right?
So part of that is not onlythe entry point and getting you set up
to get started. It's I'm therefor you. So I have calls some
some people more often than others.Other people kind of get this and go
off on their own. But likeanything, and so yeah, I'm available.
There's no consulting fees, there's noother than you know, we make
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our commissions on the life insurance becauseI'm a licensed life insurance agent in chronic
country in several states. So um, yes, that's all included. And
you do need that, you almostneed it, just emotionally, right,
because money, Like you say,two things, people don't you know,
three things politics, money and whatever. The third thing is all right,
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don't talk about it a Thanksgiving dinner. But you know who wants to talk
about dying? But the reality isninety nine or I think one hundred percent
out of everybody else that are born. Yeah, yeah, all the people
that are born, Yes, they'regonna die. Yeah. And so it's
a reality and it does seem abit morbid. But this is really about
planning. So this is about livingbenefit for the cash flow we talked about,
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and it also is about extending tothe next generation. So again I
want to stop here to allow people, allow you to give people information about
how they can contact you. Yeah, so again, best way is email
me at Chuck at Private Family Bankingdot com. Or I have this handy
dandy app where if you text thekeyword banking to the number A three two
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one four two one five two onethree, you will get an automatic business
card electronic business digital business card thatI have and on there will be my
calendar link. Or you can callme. The phone number will beyond there
and you can also email me therefrom there. So and my website's also
there and anyone can do that.Yeah, anyone can do that. In
(17:56):
my website would be Private Family Bankingdot com, slap chuck C h U
c K hyphen and then my lastname, which is d E l A
d U r A n t ey. That's a long name to spell
out. I know it's best totax just chext me or give me that
email. So. I have toomany questions, but one that I would
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believe would be a common question thatpeople would want to know about us the
four oh one K. A lotof companies have stopped. I guess what
do you call it? Matching?Because of the situation that we're in today.
But should people be aware of anythingfor their four oh one case.
Yeah, very pertinent questions, Sowe don't I should just say we're not
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hyper about encouraging people to jump outof their four oh one ks, especially
if they're under fifty nine and ahalf. If they're over fifty nine and
a half, you're going to paysome income tax, but you're going to
eventually have to pay that anyway.So for us maybe past fifty nine and
a half, really it's a questionof taxation. Should I take the hit
now or should I wait till I'min my seventies and who knows where the
tax rate might be right, soyou can redeploy those moneys out of a
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four oh one K when you're overfifty nine and a half. Under fifty
nine and a half, there's goingto be an extra penalty. But we
do have some people doing that.They're saying, you know what, I'm
going to get taxed on this anyway. Most four oh one ks not only
have they stopped matching, but youcan only access about half of the money
for loans, and then you haveto pay it back, and your money
while you're borrowing it is not intheir earning money. So that's the difference
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in our pool of money. Allof your money is earning money all the
time, even if you lean againstit. There are some that don't even
believe in putting money into the fouroh one K. What do you think
about that? Well, you know, if you're don't want to participate in
a you know, the sort ofthe government controlled benefit system which is called
a qualified plan, and if youthink, you know, some of the
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four one ks require you to putin certain funds, so you're limited.
So if you want to, youknow, maybe you're more aggressive and you
want to play in the market byyourself. So there's all kinds of reasons
people don't do that and let alone, you know, I mean, the
matching thing is great. Some companiesare better than others. So I'm not,
you know, totally against it,and I wouldn't advocate to rapidly,
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you know, demolish your four ohone K. But if you're looking to
really start a whole different philosophical wayto your money and your cash flow in
your life, this might be somethingyou want to look at. So,
in other words, instead of puttingmoney and this is just an idea,
this is not anybody, you know, you're giving directions to anybody. But
instead of putting the money in thefour oh one k, you put it
into you can divert it, right, So that's what we like to see.
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So we like to say, you'reyou're you're basically using your same money
more than once and you can.It's directing that cash flow, that one
interim step that you don't do todaybecause you already do it. You direct
it to the bank right or toyour four oh one k preemptively as a
pretext take off of your your Wtwo wage. Just put this step in
there and do that first, becauseyou can always get back at your money.
(20:56):
You can always get your cash.So um, this is back to
the beginning of the conversation that westarted. And I keep I laugh to
myself because even though you read inthe news that everything's going to be okay,
even though banks are failing or banksare joining together to save each other,
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the term banking crisis and itself issomething that we hear. And so
if it's a banking crisis, buteverybody's not everybody but government officials are saying
it's okay, We're going to takecare of it. Why are they calling
it a banking crisis? You know? You know, you could surmise any
number of reasons. Again back tothat idea, are they trying to get
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us all ready for something else?You know, because you know, if
you feel like you're going to beattacked and you know the enemy of your
enemy as your friend or something likethat, right, you're going to go
to the smoothest path. So maybewe're being handled for that. But you
know that reality is even the FDICis not very solid right now, if
you get into the detail, ifthere was a mass of like what happened
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with the SVB bank, you knowthere was a mass for big investors.
You have a lot of cash ina bank that doesn't have a lot of
resiliencies, so there are some realconcerns for the average person. Okay,
so yeah, thank you, Charles. No, it goes back to if
you know this information, you canmake decisions to prepare one way or another.
(22:29):
Because it's not like you're going toget out with a mattress full of
cant right, right, not agood idea to put it under the mattress.
It's your money working. So let'sjust real close. Maybe with the
idea retirement used to be build uptwo million dollars of cash and then live
off your nest egg. That's reallynumber one, not possible. You and
I know that it used to becalled the four percent rule. Well it's
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really not. It's about the twopercent two point six percent rule now,
meaning you can take two point sixpercent of your nest egg per year and
use it to live off of well, depending on the size of your nest
egg. That's not a lot ofmoney. So that's why you're seeing people
take second jobs and keep working.I'm still working, you're still working.
We'd probably work anyway, doing somethinghelping somebody else. But but anyway,
the reality is it's a different world, is a tougher world. And for
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propsially and again we've been addressing allage groups here, twenty to thirty group,
they're just getting started. Now's thetime. Now is the cheapest time
to buy life insurance if you're inyour twenties or your thirties and you're healthy,
you're young, although those factors workto your benefit. If you're in
your thirties or forties and you havea family, buy now. You got
to think forward, What am Igoing to do with all this? How
am I going to get through usbeyond fifty. You know, now's the
(23:37):
time still to prepare. You usethe keyword preparation is key. And so
as we wrap it up here,help people how they can get in touch
with you. Yeah, please giveme an email Chuck Chu c K at
Private Family Banking dot com. Youcan also text me at keyword banking b
A n K I n G twoone four two one five two one three
(24:03):
And if all else fails, whenyou get that text back, get on
that app and you can log inon my calendar and get an appointment.
If you email me Chuck at PrivateFamily Banking dot com, I'll get right
back to you and we'll get together. Charles, thank you so much for
all this great information. It's beena blessing. Has been a good time here
This week on the Art of Improvement, I'll be speaking with Charles de Latarante.
He is a partner with Private FamilyBanking. How is your money doing?
Charles is a consultant that works withclients to facilitate breakthrough change and they're
thinking about their cash flow and bankinghabits. My conversation with Charles is coming
up next on the Art of Improvement. Thank you so much for joining the
(00:27):
Art of Improvement today. I feellike I'm talking to a dentist. I
know I have to go, Iknow I have, you know, to
make sure everything's okay, but Istill fear it. I'm sorry to introduce
you that way, Charles, butCharles de Latarante is a partner with Private
Family Banking. Hi, Charles,Hey, good morning, Karen. Was
(00:49):
a creating chill. Do you knowwhat I mean? I mean I when
it comes to money, whether you'retwenty or whether you're sixty, if you
have been prepared, it's always somethingthat's a little bit scary. And then
on top of that, what's goingon in the world today, it seems
even more difficult to understand. AmI all by myself? And that right
(01:12):
now you're not and you're not.In fact, many people are a little
a little shaky, a little afraid, and you know, we don't make
good decisions when we make them withfear. So I'm kind of here to
bring some balance perhaps today, Iknow, I hope so and so.
At Private Family Banking Partners, wesort of an alternative way to addressing what's
(01:34):
right before us. And this isanother banking crisis, you know, and
to put a little bit maybe toframe that calm into it a little bit.
This is really nothing new. Imean, think about it. You
and I have lived long enough tosee several of these cycles. Well if
you look at history, you know, starting back with the central bank efforts
in the late eighteen hundreds with AndrewJackson and all the history behind that,
(01:57):
which is great history, by theway, great drama, absolutely leading up
until nineteen thirteen when the Federal Reservewas created and so forth. The whole
idea of a central bank and fractionalreserve banking, all these complicated terms.
That's what sort of makes that it'sso much noise right to understand it.
And so currently what we do haveto deal with is there is talk about
(02:19):
making a little more difficult to getto your cash. So you know,
though we have the federal old FDIC, they call it the Federal Deposit Insurance
Corporation. Well, you know,most of us don't have one hundred or
two hundred thousand in cash in thebank. But they're really talking about restricting
withdrawals and so that could affect theaverage person too, Charles, it makes
me I don't want to seem likethe person with the tinfoil hat on,
(02:44):
but it does make me afraid whenI hear about the government. I know
FDIC is the government, right,right, but it makes me afraid when
I start seeing banks joined together andthen FDIC see coming in and saying,
you know, this is the wayit's going to be, We're going to
(03:05):
change to no cash, where itmakes me feel like, um, there's
a push to have the government overlookevery penny that we make. Well,
and again, that is an overarchingconcern for most people. You know,
what about a digital currency, youknow what if this it does seem psychologically
that they're using intimidation, fear uncertainty. You know what's it called fear uncertainty
(03:29):
and doubt. You know FUD.You know, FUD can be a big
factor in people's life. We've hearda fomo, but I would just learned
fud yesterday. Yeah, I'm goingto use it today, right, But
anyway, it sounds like a funnyterm. But you know, whether we
go to a cryptocurrency or an electroniccurrency, digital currency, I still think
there has to be a medium ofexchange, right, Every economy needs a
mechanism if it's regulated and oversaw.I mean, we're gonna have to tolerate
(03:53):
that. A few will. There'scameras everywhere today. I don't know that
this this does introduce a level ofintrusion, but I don't know that they're
per se a way out of thatonce we hit an ultimate digital currency universally.
But in the meantime, we canthink differently, you know, to
your theme of the art and improvement, you know, stress, concern,
crisis, change points in our life, they require an improvement mentality. If
(04:16):
we just run from it and webury our heads, we think it'll all
go away, that's probably not agreat idea. So I think that my
encouragement would be to find a wayto think differently, and we kind of
bring that and when we get maybeto the next steps in this little discussion
and go through some of those steps. But what people really want when it
comes to their cash, when itcomes to their money, is they want
(04:38):
certainty, they want safety, Sowe call this a safe money system.
They want access, right, youwant access to your money. You don't
want to be locked out. Andthen you want to be able to leverage
your money properly when you want tomake investments or you want to make you
buy real estate, investing or whateveryou might do. And so with our
system, we provide all of that. And we work with individuals, families,
(04:58):
and we work with small business aswell. Okay, so the name
you said, you're a partner withPrivate Family Banking and you do help families
and small businesses. But what isit that you do? Right, So
this comes from a fellow named NelsonR. Nash. Nelson was from Birmingham,
Alabama. He passed away about threeyears ago, and he had an
(05:19):
epiphany, I would tell I woulddefinitely call it epiphany. He was in
the real estate market. If youand I remember, back in the eighties,
when the interest rates went to fifteensixteen, I closed out a house
at sixteen and a half percent andthat was okay, yeah, I know,
and you know, and you know, when the money supply inflates,
prices go up, and it's justthe way, so you know, it's
all about relative difference. But atthat sent my monthly payment like amazing for
(05:43):
the house always, you know,compared to what we were looking at two
point seven five and three point twofive interest rates unheard of, right,
So younger people today don't realize thatwe've been through these cycles and things do
change. While he went through thatchange like I did back in the eighties,
and found himself with some twomberland.He was a forester, but he
was over extended in his loans.He had some other real estate, and
(06:04):
he just really dropped to his kneesand prayed and said, I need a
way out of this. Lord,I don't know, so lo and behold
he had been in life insurance fora long time and it hadn't occurred to
him. He had all this cashvalue which is called cash value whole life
insurance, and he had ready accessto that money. And so out of
that he created enough cash to payoff the loans, get away from the
(06:27):
twenty percent interest that was going on. Then if you remember money markets were
paying seventeen I had money in themoney markets back then, and so lo
and behold. The epiphany was,wow, wait a minute, if I
could do this with these policies Ihave. What if we redesign these and
supercharged them with a front end cashaccumulation called cash value. And so what
(06:48):
we do is we work with twoor three insurance companies. We sell a
very unique custom design for the individualeffect, have clients all over the country.
We sell in all fifty states,and we try to set find out
what they want to do. It'sall about their goals. It's not about
selling them life insurance per se,though that's an add on. We all
(07:10):
need some life insurance, especially ifyou're raising a family. However, what
they really want to do is puttheir cash in a safe place and have
access to it and protection from creditorsstock stock market volatility gets out of the
way because there's a guaranteed portion,and then there's a dividend portion. So
it's a dividend paying a policy witha mutual insurance company. As a policyholder,
(07:31):
you're an owner of that mutual insurancecompany enjoy the dividends. So kind
of that's the basic framework. Butwhere the banking comes in. What people
don't realize, is we all dobanking right. Money comes in, money
flows out. A lot of usdon't write checks anymore more, but we're
clicking away and we're automatic paying,and money's flowing in and out of our
lives. So you think of aninvestor. He or she may take ten
(07:54):
or twenty percent of your money,put it away and use that as your
investment account. Maybe you could dothirty percent. I don't know to how
good you're doing on your cash flow, so you may put it in the
market, and then you're subjecting yourselfto these big market swings. Think about
what if you could put all ofyour cash through a system, a banking
system that you own, you havea contract with, and over your lifetime
(08:16):
you have an opportunity to earn unended, uninterrupted compound interest on all the money
that flows through your life. That'sa big idea that sounds dreamy. It
does, and it's possible. Wehave thousands and thousands of people doing this.
You know it's banking. Initially,your thought is it's not sexy,
right, but it's really sexy whenyou're forty years old and you're already a
(08:39):
millionaire because of decisions you've made rightand so the dumbest question I can ask,
but one that I have to ishow early can you start? How
young can you be? And thedumbest question of all, and the one
that applies to me is it toolate? Is never too late? Oh
that's a great question. I startedat age sixty six, believe it or
(09:00):
not. I love you. Iturned seventy in August. So here we
are may so that'll be soon.So I'll be a septogenarian soon. But
I saw this concept twenty years ago. I was a consultant. I was
a road warrior. I was generatinga lot of cash. A guy came
to me and said, hey,you need to look at this. You
know what I did in two thousandand two thousand and one, I bought
(09:22):
investment real estate. I bought avacation home. Yeah. Yeah, I
end up having to do a VRBOjust to keep it afloat, and I
almost lost it in the O eightcrash. Instead of doing what we're talking
about today. I have goosebumps becauseI did lose my house in two thousand
and eight. Yeah, I meanit was I was like shot. I
know, so I no, it'snot too late. We have seventy some
year old people doing this. Igot in in sixty six. I've capitalized
(09:46):
my I have three different accounts,if you will, three different policies,
one on me, one of mywife. I have a twenty year daughter.
Your old daughter still at home.You said you have kids in twenty
years old. I have twins,got it? Oh? Perfect? Yeah,
And so I bought one on hertoo. So I so I could
put a lot of so in fouryears. I started this four years ago,
having seen it twenty years ago.I have almost two hundred thousand in
there myself, and I use thatto do investing. Now. I love
(10:09):
that. I'm not in the market. I'll do real estate. I'll do
some rental. Really, I thinkthe market right now. And I'm not
a prophet or the son of aprofit. I'm also a realtor. You
don't need to explain. I meanyou can understand totally. So I've done
well there, and I got atthe upswaying and we did some leveraging,
but I didn't get ahead of myself. So we're doing well there. But
in the meantime, my money,this two hundred thousand for example, or
(10:31):
more for a lot of people issitting there growing every day. It's uninterrupted.
You have a guaranteed growth rate notsubject to market volatility, and that's
by a contract you have through thisWhole Life insurance Charles, Before I go
any one second further, can youtell people how to get in touch with
you? Right? So, thebest way you can email me at Chuck
(10:52):
at Private Family Banking dot com.That's huc K Chuck at Private Family Banking
dot com. Or you can textthe keyword banking to three two one four
two one five two one three andyou'll immediately get a text. You'll get
on my digital business card and therewill be a short video there and all
(11:13):
my contact and my calendar booking calendars. So but if you email me at
Chuck at Private Family Banking dot com, I'll send you a calendar invite.
I sent up a thirty thirty minuteintroductory call. I'll send you a free
book. In fact, my book'sjust coming out. I'm working on a
working title and it's already to theeditor and it's going to expand on these
(11:33):
concepts and bring them up to date. This has been around for a while,
utilized by a lot of people.But that's how people can't get a
hold of me. So, um, peep, small businesses, families,
everybody's hurting right now because the economyhas changed. And it sometimes confuses me
when I hear about the unemployment ratebeing so low, and then the more
(11:56):
I talk to people, I thinkit may be because as people have taken
on a second job or a sidehustle. Yeah, so how does it
fit if you're like a regular personthat had a job that suddenly has to
get another one just to make endsmeet? How does that person fit into
your plan? Oh? Is iteven possible? Oh yeah, that's a
(12:18):
perfect question. So this is wideranging. So let's start with that.
Joe Joe, Joe regular, Joeregular. Yeah, and so, and
I'm not Joe regular too. Imean, I'm still I'm still whacking away
at it every day. I'm tryingto do great things. So, um,
really, to begin to store upsome capital, as long as you
have some W two or a businessincome ten ninety nine income, a way
(12:43):
to show that you can pay apremium. Basically, as long as you
have some income. We like tostart people out to really get the cash
going about five hundred a month.So if you can't find that for no
charge at all, I provide budgetingcounseling to get you set up for success.
So if you're just getting art,your young person, you need to
get control, you know, sortof the not necessarily a debt free mentality,
(13:05):
but a debt reduction mentality where wego through and we'll do a debt
snowball reduction with you no charge atall, to get you ready to get
into this. If you're ready now, I've got twenty four year old couple
out of California. They just startedout. They have two jobs. They're
teaching school, and they were ableto get started a thousand dollars a month
and put quite a bit of moneyin upfront and they're doing great because they
(13:28):
saw this. And the young manhe just came alive with us. I
sent him a book. He readit and he said, where's this been
all my life? And you thinkabout it back to that one statement.
Would you rather have your money inthe market ten percent or twenty percent of
what you are making subject all thatvolatility, or do you want to have
all of your money eventually as weset this up, because maybe you started
(13:48):
five hundred a month, then wework you up and we figure out how
to get your budget adjusted so youcan flow more through there because you can
always borrow back against it. It'slike any other asset. This is a
horrible question, but I need toask. Okay, So here is a
you know, Joe Regular in hissixties and everything's going great. His wife
(14:09):
is on the plan, his daughteris on the plan. But Joe Regular
dies. What happens then? Doesthat? Do you have to have something
set up to where this goes toyour family? That also, yes,
so we do so within the policyyou have to name a beneficiary and so
it flows tax free. So manyof our policyholders are one to two three
(14:31):
million dollars in death benefits. Sothere's also inside the policy there's a long
term care policy included. There's acritical illness and there's also life threatening illness.
That are all writers that we includein that package of goods, if
you will, And so there arelots of good features, including the lending
and the ultimate death benefit like anylife insurance policy. So you know,
any person raising a family or someonewho wants to pass on a legacy.
(14:54):
We have a lot of people intheir sixties that they're thinking about the next
generation and they're grand children, sothey'll buy policies on their children and grandchildren,
not necessarily themselves, because the olderwe get, you know, maybe
the more expensive it is, andsometimes we have health issues. I didn't.
I was able to go in fullforce at sixty six, but some
people that, well, if youare not quote unquote affordably ensurable, you
(15:18):
have other people any a business partner, a wife, you know, kids
that are still in your home,kids that you help support, and especially
grandchildren and then set them up forthat next generation. It's so funny because
it sounds so simple and it soundsit makes so much sense. But in
our every day lives sometimes that's thelast thing we think about. It's the
(15:41):
last thing that we take care ofwhen it comes to life insurance or our
finances. I mean, I'm nottalking about everybody, but there are those
like myself that you know, lifehappened and it's gotten a way for me.
And so going back to understanding bankingand family banking, it's not like
(16:02):
you need to know a lot ifyou're going to contact you Charles to say
you're going to help me along theway. Is that right? Right?
So part of that is not onlythe entry point and getting you set up
to get started. It's I'm therefor you. So I have calls some
some people more often than others.Other people kind of get this and go
off on their own. But likeanything, and so yeah, I'm available.
There's no consulting fees, there's noother than you know, we make
(16:26):
our commissions on the life insurance becauseI'm a licensed life insurance agent in chronic
country in several states. So um, yes, that's all included. And
you do need that, you almostneed it, just emotionally, right,
because money, Like you say,two things, people don't you know,
three things politics, money and whatever. The third thing is all right,
(16:47):
don't talk about it a Thanksgiving dinner. But you know who wants to talk
about dying? But the reality isninety nine or I think one hundred percent
out of everybody else that are born. Yeah, yeah, all the people
that are born, Yes, they'regonna die. Yeah. And so it's
a reality and it does seem abit morbid. But this is really about
planning. So this is about livingbenefit for the cash flow we talked about,
(17:11):
and it also is about extending tothe next generation. So again I
want to stop here to allow people, allow you to give people information about
how they can contact you. Yeah, so again, best way is email
me at Chuck at Private Family Bankingdot com. Or I have this handy
dandy app where if you text thekeyword banking to the number A three two
(17:36):
one four two one five two onethree, you will get an automatic business
card electronic business digital business card thatI have and on there will be my
calendar link. Or you can callme. The phone number will beyond there
and you can also email me therefrom there. So and my website's also
there and anyone can do that.Yeah, anyone can do that. In
(17:56):
my website would be Private Family Bankingdot com, slap chuck C h U
c K hyphen and then my lastname, which is d E l A
d U r A n t ey. That's a long name to spell
out. I know it's best totax just chext me or give me that
email. So. I have toomany questions, but one that I would
(18:18):
believe would be a common question thatpeople would want to know about us the
four oh one K. A lotof companies have stopped. I guess what
do you call it? Matching?Because of the situation that we're in today.
But should people be aware of anythingfor their four oh one case.
Yeah, very pertinent questions, Sowe don't I should just say we're not
(18:41):
hyper about encouraging people to jump outof their four oh one ks, especially
if they're under fifty nine and ahalf. If they're over fifty nine and
a half, you're going to paysome income tax, but you're going to
eventually have to pay that anyway.So for us maybe past fifty nine and
a half, really it's a questionof taxation. Should I take the hit
now or should I wait till I'min my seventies and who knows where the
tax rate might be right, soyou can redeploy those moneys out of a
(19:04):
four oh one K when you're overfifty nine and a half. Under fifty
nine and a half, there's goingto be an extra penalty. But we
do have some people doing that.They're saying, you know what, I'm
going to get taxed on this anyway. Most four oh one ks not only
have they stopped matching, but youcan only access about half of the money
for loans, and then you haveto pay it back, and your money
while you're borrowing it is not intheir earning money. So that's the difference
(19:27):
in our pool of money. Allof your money is earning money all the
time, even if you lean againstit. There are some that don't even
believe in putting money into the fouroh one K. What do you think
about that? Well, you know, if you're don't want to participate in
a you know, the sort ofthe government controlled benefit system which is called
a qualified plan, and if youthink, you know, some of the
(19:49):
four one ks require you to putin certain funds, so you're limited.
So if you want to, youknow, maybe you're more aggressive and you
want to play in the market byyourself. So there's all kinds of reasons
people don't do that and let alone, you know, I mean, the
matching thing is great. Some companiesare better than others. So I'm not,
you know, totally against it,and I wouldn't advocate to rapidly,
(20:11):
you know, demolish your four ohone K. But if you're looking to
really start a whole different philosophical wayto your money and your cash flow in
your life, this might be somethingyou want to look at. So,
in other words, instead of puttingmoney and this is just an idea,
this is not anybody, you know, you're giving directions to anybody. But
instead of putting the money in thefour oh one k, you put it
into you can divert it, right, So that's what we like to see.
(20:33):
So we like to say, you'reyou're you're basically using your same money
more than once and you can.It's directing that cash flow, that one
interim step that you don't do todaybecause you already do it. You direct
it to the bank right or toyour four oh one k preemptively as a
pretext take off of your your Wtwo wage. Just put this step in
there and do that first, becauseyou can always get back at your money.
(20:56):
You can always get your cash.So um, this is back to
the beginning of the conversation that westarted. And I keep I laugh to
myself because even though you read inthe news that everything's going to be okay,
even though banks are failing or banksare joining together to save each other,
(21:18):
the term banking crisis and itself issomething that we hear. And so
if it's a banking crisis, buteverybody's not everybody but government officials are saying
it's okay, We're going to takecare of it. Why are they calling
it a banking crisis? You know? You know, you could surmise any
number of reasons. Again back tothat idea, are they trying to get
(21:41):
us all ready for something else?You know, because you know, if
you feel like you're going to beattacked and you know the enemy of your
enemy as your friend or something likethat, right, you're going to go
to the smoothest path. So maybewe're being handled for that. But you
know that reality is even the FDICis not very solid right now, if
you get into the detail, ifthere was a mass of like what happened
(22:03):
with the SVB bank, you knowthere was a mass for big investors.
You have a lot of cash ina bank that doesn't have a lot of
resiliencies, so there are some realconcerns for the average person. Okay,
so yeah, thank you, Charles. No, it goes back to if
you know this information, you canmake decisions to prepare one way or another.
(22:29):
Because it's not like you're going toget out with a mattress full of
cant right, right, not agood idea to put it under the mattress.
It's your money working. So let'sjust real close. Maybe with the
idea retirement used to be build uptwo million dollars of cash and then live
off your nest egg. That's reallynumber one, not possible. You and
I know that it used to becalled the four percent rule. Well it's
(22:51):
really not. It's about the twopercent two point six percent rule now,
meaning you can take two point sixpercent of your nest egg per year and
use it to live off of well, depending on the size of your nest
egg. That's not a lot ofmoney. So that's why you're seeing people
take second jobs and keep working.I'm still working, you're still working.
We'd probably work anyway, doing somethinghelping somebody else. But but anyway,
the reality is it's a different world, is a tougher world. And for
(23:15):
propsially and again we've been addressing allage groups here, twenty to thirty group,
they're just getting started. Now's thetime. Now is the cheapest time
to buy life insurance if you're inyour twenties or your thirties and you're healthy,
you're young, although those factors workto your benefit. If you're in
your thirties or forties and you havea family, buy now. You got
to think forward, What am Igoing to do with all this? How
am I going to get through usbeyond fifty. You know, now's the
(23:37):
time still to prepare. You usethe keyword preparation is key. And so
as we wrap it up here,help people how they can get in touch
with you. Yeah, please giveme an email Chuck Chu c K at
Private Family Banking dot com. Youcan also text me at keyword banking b
A n K I n G twoone four two one five two one three
(24:03):
And if all else fails, whenyou get that text back, get on
that app and you can log inon my calendar and get an appointment.
If you email me Chuck at PrivateFamily Banking dot com, I'll get right
back to you and we'll get together. Charles, thank you so much for
all this great information. It's beena blessing. Has been a good time here
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