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Dr. Jim Yohanan on colleague Mitch Yellen

Dear Fellow Professional,
There is a quote often attributed to Albert Einstein, by all accounts a very wise man; “The definition of insanity is doing the same thing over and over again and expecting different results.” This idea could appropriately be applied to the discipline of financial planning. Even with the flaws of standard concepts repeatedly being thrust upon us over the years, millions of us continue to embark on the journey toward prosperity that is promised by traditional financial planning formulas only to find out too late that the destination never arrives. Can you honestly say that you are pleased with where you are financially today, or where you are headed tomorrow? I feel that I can.
Although our backgrounds may vary somewhat, we as physicians have many shared experiences and values. We face similar challenges in our business, professional and personal lives. Since I have found something of great value in these aspects of my life, I wish to share my discovery with others who may benefit similarly. Please allow me to introduce you to a friend and colleague, Mr. Mitchell Yellen of Personal Equity Institute (PEI). Mitch assists his clients with the implementation of a powerful financial tool called the “Be the Bank” concept. He refers to his use of this strategic wealth building process as “Personal Financial Engineering”. In essence, one creates their own personal plan/bank as a strong and safe foundation for building their personal wealth. By using the “Be the Bank” process, one “owns” and controls their plan (“The Bank”) as a mechanism for savings, creating a pool of capital for countless self-tailored financial purposes. In essence, your bank functions as an infrastructure for all of the investing you currently do, with numerous advantages. The “Be the Bank” process has proven to be a tremendously powerful tool for wealth accumulation for my family, just as Mitch predicted. Although I am fortunate to have Mitch and his business based here in Colorado Springs, where I live, his clients are nationwide and include professional athletes and coaches, celebrities and entertainers. In fact, he recently welcomed NBA Hall of Famer Rick Barry as Vice President of PEI and recording artist Pat Boone as his national spokesperson. Mitch has a 25 year history of implementing and refining the “Be the Bank” process for both his clients and family.
Created in the proper format, the “Be the Bank” process has several key advantages for wealth accumulation. At a minimum, this concept provides tax free growth via dividends and guaranteed interest payments. The concept also serves as an ideal vehicle for self-financing of major personal purchases (i.e. automobile, mortgage, etc), and is even more suited for business and personal investment financing. Your bank becomes a major source of tax free withdrawals for retirement. From the inception of your bank, a tremendous benefit is provided to your heirs, well above and beyond what you have invested. Over time, this benefit becomes an almost exponential means of wealth accumulation and eventual tax advantaged transfer of that wealth to them. Additionally, Mitch will make sure that your bank has provisions that provide for a guaranteed, ongoing funding of the bank in the event of disability.
I recognize that personal finances are by definition, “personal”. That is why this letter has been more than seven years in the making. I wanted to be certain and feel comfortable in providing an unsolicited endorsement to others on this personal of a topic. I certainly could keep my experiences to myself and benefit quietly, but, having seen and benefited from the power of the “Be the Bank” process for my practice and family, I feel strongly about endorsing and assisting Mitch with introducing this truly unique concept to my fellow physician colleagues.
James M. Yohanan, M.D.
Head and Neck Surgery
My wife, Mary and I spent many hours with Mitch, having him explain this concept to us. In order to be certain that the “Be the Bank” process was the right choice for us, we read countless books and did independent research to investigate and analyze all aspects of the concept. Deciding to form our own bank still seemed like a small leap of faith, as this concept was quite different from the standard personal financial planning formula being promoted most everywhere else. However, after seven years of diligent implementation of my bank, combined with current market and financial situations starkly exposing the flaws and failures of standard financial planning techniques, I am witnessing the success of the model first hand. Reassuringly, the so-called “experts” are now discovering the methods Mitch teaches. I can now tell you that the “Be the Bank” process works in practice and works tremendously well.
As far as risk, you will see that the concept actually uses one of the oldest and safest financial vehicles available. For generations, the tax advantages of these plans have been continually reaffirmed and protected by the government. They have survived the Great Depression and are more than surviving in the current global economic downturn. In fact, the major banks themselves place upwards of 35% of their capital (representing in part your deposits in their banks), in these vehicles. Why not deposit your money in your own bank, and utilize the same vehicle major banks use to safely invest the deposit money that you currently entrust to them?
Even if you only used your bank as a savings method, given the guaranteed rates of return offered, you are likely to prosper. If you truly use your plan as your own bank, self-financing your major purchases, you can recapture and actually profit from the 34.5% of disposable income, on average, that we all spend on financing major purchases. So, without paying any more than you currently do for these purposes, you and your bank will profit from your finance charges, rather than someone else’s bank. You actually can turn those finance charges, which normally represent a continual head wind against your financial gain, into a tail wind for your financial future. However, if you also use your bank for funding personal investments or for financing business purchases, you will see Mitch’s “Velocity of Money” concept take off for you!
This is not a get-rich-quick concept. The “Be the Bank” process uses rather dull, conservative, proven techniques in an innovative way. But that is the beauty of it! However, the concept does require discipline to “capitalize” your bank before you can reap the rewards, just like what is required of a traditional bank. Again, you control and own this asset, your bank, and can use the funds as you see fit. The “Be the Bank” process truly represents the foundation of your financial plan. Where you take it from there is your decision and Mitch is more than willing to assist you.
There are four major erosions of wealth that the “Be the Bank” process can dramatically reduce or eliminate:
1. Taxes
2. Interest payments to others
3. Investment losses from unnecessary increased risk exposure (such as stock market volatility)
4. Recovery of lost opportunity costs
PEI focuses on those strategies that have benefited many in achieving, maintaining and transferring true wealth. I personally was very pleased and honored when they asked me, a long-term client, to share my experience with my fellow physicians throughout the area. I recognize that many of us feel lost in today’s world of finances and are looking for answers. I can only hope that my story sparks an interest in you to learn more by attending one of the meetings or webinars Mitch and Rick are hosting on our behalf. Besides introducing these powerful financial strategies in general, special attention will be paid to how these concepts can specifically benefit physicians in the business aspect of their practices. Unique profit opportunities of forming leasing companies for business purchases are just one of the interesting concepts that will be covered.

James M. Yohanan, M.D.

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