Capital WarehouseTM implements a proven and little-known Dual Compounding system. Our clients see consistent positive returns that provide for a lifetime of passive, tax-free cash flow when properly executed. They recognize that creating a rich lifestyle today and for their future, takes the same commitment to financial education and execution, as building a successful business.
Business owners, investors, entrepreneurs, and anyone who would like to earn larger and safer tax-free returns on their funds.
A Capital WarehouseTM essentially a smart way of parking your money or investment capital with an "A" rated financial institution instead of your bank. There are no contribution limits to your Capital WarehouseTM .
Your funds earn returns while in your warehouse. The 20-year industry average interest credit in these "A" rated financial institutions using the Capital Warehouse strategy is a conservative 6% on your basis. Today the average interest rate offered by most banks is less than .06%. The process is simple and basically consists of two steps.
Set up and properly structure your Capital Warehouse. This is a highly specialized process that can only safely be structured by experienced professionals who understand this concept, the complexity of the tax code and its requirements.
Our program uses the most beneficial tax advantaged option in our tax code today. In fact, The Wall Street Journal said; "This program has become a tax shelter for the rich… it gives the affluent tax advantages far beyond those available to middle-income people through a 401(k) or IRA."
Initiate the dual compounding component of the Capital Warehouse Plan. Once your funds are in your Capital Warehouse you can access them at any time. However, unlike your bank, the Capital Warehouse allows you to actually earn two different returns on the exact same dollar.
You can use the funds in your warehouse to invest in anything you wish. You may choose to invest in income producing real estate, equities, precious metals, oil & gas, etc. You can also use the funds to grow your business by investing in business expansion, equipment, acquisitions, hiring new employees, etc.
To meet the tax code requirements of this plan it's important to access your funds in the proper way. We help and show you exactly how to do this. When you have an investment you would like to make, you simply loan yourself 85% of your own money from your Capital Warehouse at a 3% interest rate.
The money loaned is then invested in your business or any other investments you wish. For example, let's say we are targeting a 10% return on the funds you borrow. Do you recognize the dual compounding yet? 6% returns from the Capital Warehouse on the basis and 10% returns in the secondary asset or investment, both using the same dollar!
Let's compare the traditional way of holding your money in the bank vs using the Capital Warehouse strategy.
You invest 1 million dollars of capital in your choice of assets and earn a 10% return or $100,000 per annum. Pretty good.
You place a million dollars into your own Capital Warehouse and earn a 6% return or $60,000.00. You then loan yourself $850,000 to invest in the same choice of assets, which earns the same 10% return, or $85,000.
These two returns total $145,000 on your 1 million dollars. We then take out the cost of the 3% loan which is $25,500. So on the exact same investment, the Capital Warehouse method earned $119,500. The traditional way only earned $100,000. The Capital Warehouse method produced almost a 20% higher net return. Let's see what kind of impact The Capital Warehouse strategy produces over time.
|Time||Using Capital Warehouse||Using Traditional Bank|
|1 Year||$ 119,500||$ 100,000|
|5 Year||$ 1,758,411||$ 1,610,510|
|10 Year||$ 3,092,011||$ 2,593,742|
|20 Year||$ 9,560,530||$ 6,727,500|
Additional Capital Warehouse Benefits
These are features a bank account just cannot touch. Leveraging one dollar for two returns is simple and just plain brilliant.
Many business owners need to keep their capital liquid so it can be used at any time for cash flow needs. Thus they are often unable to contribute meaningful amounts of funds to a dedicated retirement account where those funds are tied up. Plus you're hit with stiff penalties if you pull your money out early.
The Capital Warehouse is the perfect solution for a business owner's retirement plan. Your funds grow completely tax-free. You can take funds out, and put them back in, at any time, and you pay no taxes, penalties or fees. Your funds will not lose a penny due to market down turns, thus you sleep better. Your funds can be accessed at retirement completely tax-free, just like a ROTH! Remaining funds pass to your heirs completely tax-free (4).
Some businesses offer plans like this to attract and retain key employees or partners. It's also great for estate planning and partnership buy/sell agreements. This plan can help you bridge the gap between traditional retirement plans and the unique needs of a small business owner.
The Capital Warehouse is the perfect cash-flow tool. All businesses need ready access to funds to meet cash-flow needs. This plan enables you to access your funds at any time, for any reason, without having to pay any taxes, fees nor penalties. When you pull your funds out correctly, as we show you, your total basis amount will still earn an average return of 6% even though you have borrowed 85% of it out to fund your business.