There’s nothing in the universe quite like the power of family. The power of such a tightly-knit, like-minded group of people. Sharing the same experiences, the same culture, and the same enduring love through decades and centuries and millennia. There’s simply nothing like it.

Families have the power to self-sustain… To support each other through hard times and persevere through generations… Families can even change the world.

One of the best examples of the lasting power of family are the Medicis. You’re probably already be familiar with their name.

Even though the family’s patriarch Cosimo de’ Medici passed away more than 650 years ago, the legacy he founded (and the family he revitalized) are still taught in history classes across the world today. And with good reason.

The Medici story begins in the Italian city of Florence near the end of the 14th century. Thanks to its location in central Italy, Florence had grown into a hub for merchants, traders and moneylenders from all over the country.

But it was still the Middle Ages. It was an era of constant conflict between Italy’s countless princes and other nobility. Bankers and financiers didn’t have the same kind of status they have today. Young men aspired to become knights or nobles … and many cultures still looked down on merchants as outsiders of lower standing.

So no one paid much attention when the Medici opened their own small bank in 1397, with Cosimo taking over and quietly growing the bank into an empire over the next few decades.

Looking back, the Medicis’ rise to power seems so obvious. Controlling the banks means controlling the flow of currency and lending. If a prince wanted to hire mercenaries to wage war, he needed the Medici family. If the Pope himself wanted to collect fees from a far-flung bishop, he’d need the Medici to issue a papal license.

In the words of a bishop who would later become Pope Pius II: “Political questions are settled in [Cosimo’s] house. The man chooses who holds office… He is who decides peace and war. He is king in all but name.”

This was a kind of power that no one had even conceived of … true financial power. But it was all part of Cosimo’s vision. He saw a world where peace, stability and prosperity all went hand-in-hand. The kind of world we live in today (to an extent, at least). And he also believed in empowering his community.

The Medici family were among the greatest patrons of art that history has ever known. Cosimo himself spent an inflation-adjusted $500 million on art and architecture— personally funding Donatello’s David. The family also financed the construction of Saint Peter’s Basilica, the Florence Cathedral, and countless more of Italy’s greatest cultural treasures.

The Medicis patronage was so massive that it helped kickstart the Italian Renaissance, which would eventually help to push Europe into the future and change the world forever.

All thanks to one family. One brilliant patriarch. And two key principles…

The first one is pretty obvious, and it’s called self-banking. Owning a bank is like having a cheat code for other business ventures. You can set your own terms, borrow from a massive pool of liquidity even (and especially) when times are looking tough … and you can have that money on-demand.

I’m not an economic historian, but I can imagine that most markets were probably pretty volatile back in the 1400s. It wasn’t just a matter of “losing your shirt” metaphorically but also literally (sorry, I had to make that joke). With their network of banks, the Medici would always have access to piles of cash for opportunities virtually anywhere in Italy or beyond.

So if a harvest came in bigger than expected, and the market price for olive oil crashed in Southern Italy … the Medicis could buy up the excess and ship it elsewhere. Or they could snatch up property in a rapidly-growing province.

Self-banking was a critical advantage for the Medici family back then, and it’s still a massive advantage today.

Just since 2000, we’ve seen 9 different occasions where the stock market pulled back 20% or more. We’ve seen real estate market crashes, crypto crashes, and countless short-term investing opportunities along the way as well.

The critical difference today is that you don’t actually need to own a bank to take advantage of the benefits of self-banking.

Instead, you can actually borrow against the cash value of a paid-up whole life insurance policy to pursue business opportunities, make large purchases, or really do anything you want. It’s your money.

There’s also another key advantage to whole life insurance that really defined the lasting success of the Medici family. And in technical terms, we refer to that practical advantage as a “volatility buffer” …

A volatility buffer is a portion of your portfolio that is not subject to the kind of volatility inherent in most investments. Stocks are a great way to grow your wealth over time, for example, but the market is prone to crashing. Real estate values are also subject to external factors like interest rates. Even your bonds are at risk of defaulting in a worst-case scenario.

By owning a network of banks, the Medici had built a medieval “volatility buffer” whether they realized it or not. They constantly had a ready supply of gold that wasn’t subject to the ups and downs of other markets.

The cash value of your whole life insurance provides the same security, peace of mind, and prosperity for modern families.

Because if there’s one thing all parents learn very early on, it’s to expect the unexpected.

You never know what life is going to throw your way. From unexpected health issues to job layoffs or market trouble, there are a million different potential problems life could throw at your family.

Having access to a volatility buffer means having access to much-needed cash without having to sell equities or liquidate other assets at a loss (which can completely derail years of hard-earned progress you’ve made towards compounding gains).

It’s critical to be proactive, preparing in advance to help your loved ones when they inevitably stumble, or to grow the family’s wealth when the opportunity presents itself. Sometimes it takes vision, but it’s also some of the most rewarding work you’ll ever do.

Key Takeaways

• The Medici family’s legacy exemplifies lasting wealth creation through strategic financial control and family continuity.
• Self-banking, or owning access to liquidity, was a core principle that allowed the Medicis to capitalize on market opportunities and safeguard wealth during volatile times.
• Modern whole life insurance policies offer a similar self-banking advantage by allowing borrowing against the cash value to fund opportunities or emergencies without liquidating investments.
• Building a “volatility buffer” through stable assets such as whole life insurance cash value protects family wealth from market crashes and unexpected financial challenges.
• Proactively preparing financial strategies focused on control, risk protection, and liquidity strengthens multigenerational wealth and empowers families to persevere through uncertainties.
• Life insurance serves as both a wealth-building and risk-mitigating tool, fostering intentional wealth growth and family legacy preservation.

Ready to see how this could apply to your wealth plan? Click the big yellow Clarity Call button and let’s map it out together.