The Money Advantage Podcast: Recent Episodes
Bruce Wehner & Rachel Marshall
questions reveal more about how a policy will perform for you than any projected number ever could, and notice how much of this still comes back to your own behavior.Why Working With an Infinite Banking Practitioner Changes the DecisionEverything above is something you can evaluate on your own. That is the point. But there is real value in working alongside someone who knows this terrain well.A knowledgeable practitioner typically works with a modest number of carriers, often four to six, understanding a handful deeply rather than spreading thin. That depth matters because the nuances between carriers are hard to master at scale. A good practitioner also tends to have real relationships within these companies, which can occasionally open doors that would otherwise stay closed.The goal is not just picking a company. It is matching the right company, policy design, and professional guidance to your situation.Choosing the Right Company Is About Fit, Not Rankings...
Legacy Formula® walks families through.This is where the stewardship reframe comes in. A family guidance system helps heirs see themselves as stewards,...
If you've researched whole life insurance for Infinite Banking, you've probably seen whole life insurance dividend rates advertised. 5.76%. 6.5%. And you've probably wondered: is higher better, and how do I compare policies using this number?Here's the answer, stated plainly: a higher dividend rate does not mean a better policy. Chasing it, without understanding the bigger picture, leads people to make poor decisions about which policy to choose.That instinct to find one comparable number isn't foolish. But the dividend rate is one of the most misunderstood figures in whole life insurance, and treating it as the answer skips past everything that actually determines how a policy performs.https://youtu.be/JSVn8bnHy1gThis isn't an argument that dividends don't matter. They do, and you want them. It's an argument that the rate by itself is one data point in a much bigger picture, and using it as your primary basis for comparison will mislead you. Time to peel back the layers and look at what's really going on underneath that number.The core ideas:Base Premium Versus Paid-Up AdditionsParticipating Versus Non-ParticipatingDirect Recognition Versus Non-Direct RecognitionDoes a higher dividend rate mean a better whole life insurance policy?What does a whole life insurance dividend rate actually tell you?Are whole life insurance dividends guaranteed?Are whole life insurance dividends taxable?Why doesn't a 6% dividend rate mean my cash value grows 6%?What is a participating whole life insurance policy?How should I actually compare whole life insurance companies?The core ideas:A 6% dividend rate does not mean your cash value grows 6% that yearThere's no industry standard for how dividends are calculated or reported, so comparing rates across companies isn't apples-to-applesPolicy design (how much goes to base premium versus paid-up additions) affects dividend crediting more than the rate itselfA 10 to 15-year dividend history tells you more than this year's numberDirect recognition versus non-direct recognition makes illustrated comparisons unreliableThe real comparison criteria: financial strength, dividend history, company friendliness toward policy loans, and your own funding behaviorWhat a Whole Life Insurance Dividend Actually IsA stock dividend is a board of directors deciding to distribute company profit per share. A whole life insurance dividend from a mutual company is classified as a return of premium instead, which is also why it isn't taxable.Mutual companies price policies conservatively, especially around mortality cost, the biggest expense they can't fully control. When actual experience comes in better than projected, the surplus gets returned to policyholders as a dividend.The "they're just giving your money back" objection misses something. If you paid a million in cumulative premiums over forty years and end up with two million in cash value, that's growth that was conservatively deferred, not a refund. In some years, the dividend paid can exceed that year's entire premium.For a fuller breakdown of how dividends are calculated, taxed, and what your options are for using them, we have a dedicated dividends article worth reading, along with a closer look at what dividends are and aren't. The rest of this piece focuses specifically on the rate itself and why it's so often misread.Why a 6% Dividend Rate Doesn't Mean Your Cash Value Grows 6%Here's the single most damaging misconception in this conversation. Social media commentary loves the math of "6% dividend minus your loan rate equals your spread." That math is wrong, because the declared rate and your actual crediting aren't the same thing.The declared rate is largely a gross figure applied across the whole pool of policyholders. What reaches your individual contract is net of mortality costs and other expenses, and depends heavily on your age and where you sit in the life of the policy.You can think of it this way: the cash value is chasing the death benefit. Actuarially, a policy's cash value has to rise enough to equal the death benefit by around age 121. A 70-year-old has far less time left to compound toward that than a 10-year-old, so their cash value has to climb proportionally more, even under the exact same declared rate.That's also why two people holding the same company's policy, with the same declared rate, see different increases in their own cash value. The rate is an input into a calculation, not the outcome of one.Erase "dividend rate equals my growth rate" from how you think about this. The better question is: what's actually driving my policy's performance?The Two Sides of Your Illustration: Guaranteed and Non-GuaranteedEvery whole life policy grows through two combined mechanisms: guaranteed interest and non-guaranteed dividends. An illustration shows both sides separately.The guaranteed side shows zero dividends, the contractual minimum the company is obligated to deliver regardless of performance. The non-guaranteed side shows what happens if today's declared dividend rate continues unchanged every year, reinvested into paid-up additions. That's a big assumption stacked on another. A projection showing a large cash value at age 92 isn't a prediction; it's what today's number would produce if nothing about it ever changed, which it will.Dividend rates move in line with the company's actual performance over time. The number on page one of an illustration is a snapshot, not a forecast.There's a meaningful upside, though. Once a dividend is actually declared and paid, it locks in. It becomes part of the guaranteed side of your contract and is never removed, even if future rates decline.This is exactly why comparing two illustrations on dividend rate alone falls apart. Two different companies can show the identical declared rate and still project completely different cash values twenty or thirty years out, because the rate gets applied differently depending on contract design, your age, and the specific year. The rate isn't the variable that explains the gap. Design is.Why Policy Design Drives Performance More Than the Dividend RateThis is the part that surprises most people, and it's worth slowing down for.Base Premium Versus Paid-Up AdditionsDividend crediting isn't applied evenly across every dollar in your policy. The base policy receives a noticeably larger proportion of dividend crediting than paid-up additions, or PUAs, do, and there's a clear mechanical reason why.The company knows your base premium will be funded for the life of the contract, one way or another. Because of that certainty, they spread the base policy's mortality cost across the entire contract term and attach a proportionally larger death benefit to it. A bigger death benefit means more cash value has to "chase" it, which translates into a bigger dividend on that portion of the policy.PUAs work differently. They're optional, purchased year by year, priced at one-year-renewable-term cost in the year you buy them. A PUA purchased at 40 buys substantially more death benefit than the same dollar amount purchased at 60, sometimes around 10 times the premium early on, versus closer to 1.5 times later in the contract. Less death benefit to chase means a smaller dividend.Some carriers make this visible. Lafayette Life, mentioned here only as an illustrative example, breaks out the base-versus-PUA dividend split on annual statements. Early in a policy, around 90% of the total dividend commonly flows to the base.The practical takeaway: if dividend capture is what you're optimizing for, the proportion of base premium in your policy design predicts performance far better than the headline rate ever will.One caution, though. It's not as simple as "always maximize base." Higher PUA funding lowers a policy's overall mortality cost too, which also lifts crediting elsewhere. Design involves real trade-offs, not a single lever to max out.And beyond design entirely, the biggest variable left is you. How consistently you fund the policy and how you use it over decades shapes performance more than any number on an illustration.What Actually Drives Whole Life Insurance Dividend RatesThe real engine behind a dividend rate is company performance: actual mortality experience and expenses compared against what the company projected. Beat the projections, and there's more surplus to return.That's why a ten to fifteen-year look-back at a company's dividend history tells you more than this year's headline figure. A company whose dividends trended steadily or upward through real downturns is showing fiscal discipline likely to continue. A company judged on a single year's number gives you very little to go on.Recent history offers a case study here. The COVID years were a real-world blip: some carriers had loosened underwriting standards to bring in more premium volume, leaving them exposed to higher mortality costs when conditions shifted. Others held tight, conservative underwriting the whole way through. That frustrates some applicants in the short term, but it lets those companies forecast their future dividend capacity with far more confidence.The next time two companies are separated by a tenth of a percentage point this year, recognize that comparison for what it is: short-range thinking applied to a long-range product.Participating Policies and the Recognition QuestionTwo structural distinctions decide whether dividends exist at all for a given policy, and whether comparing rates across companies even makes sense in the first place.Participating Versus Non-ParticipatingOnly participating policies are eligible for dividends. The company's charter spells out that policyholders share in profits. A non-participating policy still carries guaranteed interest,...
The standard understanding of life insurance goes like this: you buy a policy, pay the premiums, file it away, and hope it never gets used. Protection for your family if you die. That's it.But that's not what wealthy families are doing.American dynasties, high-profile entrepreneurs, and the country's biggest banks have been using life insurance as an active wealth-building tool for generations. Not as a replacement for investing. Alongside it. Valued specifically for what it gives them that a brokerage account never can: liquidity, access to capital, and control.https://youtu.be/773_NczfBwwWhat follows unpacks the actual mechanics and why none of it is reserved for people with a Rockefeller-sized net worth.Table of ContentsThe core ideas:How do the wealthy use life insurance?The Trust and Insurance CombinationThe Cascading EffectThe Problem: Sequence of Return RiskThe Buffer in PracticeDo rich people have life insurance?How do the wealthy use life insurance?What is the Rockefeller strategy with life insurance?Why do banks own so much life insurance?Is using life insurance to build wealth instead of investing?What is the volatility buffer strategy?What is a family bank, and how does it work?Do I have to be wealthy to use this strategy?The core ideas:Wealthy families treat life insurance as a managed asset, not a forgotten productThe Rockefeller blueprint combines trusts and whole life to create a cascading, multi-generational capital systemBanks hold roughly $250 billion in life insurance for the same reasons: liquidity and stabilityWalt Disney, Ray Kroc, and others borrowed against policy cash value to fund businesses banks wouldn't touchDr. Wade Pfau's research shows that whole life as a volatility buffer outperforms the "just invest the premium" alternativeA family bank isn't a metaphor. It's a functioning system anyone can build.How do the wealthy use life insurance?Wealthy families use whole life insurance as the foundational “before asset” — a private, liquid capital base that comes before investing and supports every other financial move. They value it for tax-advantaged cash value growth, accessible liquidity that isn't tied to market cycles, asset protection from creditors in most states, and above all, control over their capital. Through a combination of policy loans and trusts, they fund businesses, protect assets across generations, and create a cascading system in which each death benefit replenishes the capital pool for the next generation. The same mechanics are available at any level of wealth with a properly designed policy.How the Wealthy Use Life Insurance Differently Than Everyone ElseWealthy families could absorb financial mistakes more easily than almost anyone. A bad investment, a failed business, a lawsuit. They'd survive. Yet they still put guardrails in place, specifically through whole life insurance.If the people who can most afford mistakes still protect themselves this way, what does that say for everyone else? For someone for whom a serious financial mistake isn't just painful but potentially devastating, the case is even stronger.The mindset shift is this: wealthy families don't see a life insurance policy as a product they bought and filed away. They see it as an asset they manage and deploy. The attributes they value aren't what most people focus on. They care about accessible liquidity that isn't tied to market cycles, so a bad year in equities doesn't force their hand. They care about asset protection from creditors and lawsuits, which whole life provides in most states (not all). And above everything: privacy, flexibility, and access to capital.Life insurance is private. The only way to know someone owns a policy is if they tell you. That's part of why this strategy stays largely out of view. Some of the U.S. presidents who have publicly disclosed their assets have shown whole life among them. That's notable, not because presidents are financial geniuses, but because they're disclosing what they actually have.The wealthy don't open with "what return does this get?" They open with control, access, and certainty. That order of questions matters.The Rockefeller Blueprint: Trusts, Policy Loans, and the Cascading Death BenefitThe Rockefeller name comes up constantly in Infinite Banking conversations. Almost nobody explains what they're actually doing.The Trust and Insurance CombinationHere's the mechanism. The Rockefeller family combines legal structure and whole life insurance. A family bank can be structured in many ways, depending on the family’s goals, need for asset protection, and desired level of complexity. It may be as simple as outright policy ownership, or it may involve a trust, an LLC, a holding company, or a layered structure where a trust owns a holding company that owns an LLC designed to manage family capital.The structure can vary, but the purpose is the same: to create a private, liquid capital base using whole life insurance. That capital can then be accessed and directed toward productive uses, such as buying businesses, investing, funding education, or building assets that strengthen the next generation.The Cascading EffectWhen a family member dies, the death benefit doesn't just get handed out. It's held in trust and distributed according to the family's stated intentions, then refills the capital pool for the next generation, who repeat the same cycle.This is simultaneously a legacy strategy, a banking strategy, a liquidity strategy, and a values-transfer strategy. The trust and the insurance connected together are what make it continuous. Neither piece alone does what both pieces do together.One nuance worth flagging: trusts are not income-tax magic. In most cases, a trust does not eliminate income tax; it simply determines who reports and pays it, whether that is the trust, the grantor, or the beneficiaries. What trusts can do well is provide structure, accountability, estate-tax planning when properly designed, and a measure of asset protection depending on the type of trust, state law, and how much control is retained. That is real value, but it is a different kind of value than people sometimes imagine. This isn't a strategy reserved for famous dynasties. It works at a personal level too, one generation funding policies for the next, death benefits flowing down to nieces, nephews, grandchildren. Generation One is the hardest. The message isn't that you need to do this at scale immediately. It's about thinking long-term and taking small, high-quality steps.How a Death Benefit Becomes the Next Generation's FoundationThe generational laddering concept, developed by Nelson Nash, sits at the heart of any family banking formula.A life insurance policy pays a death benefit. That death benefit funds the premiums on the next generation's policy. That policy pays its own death benefit, which funds the generation after. You can even skip a generation, grandparents to grandchildren. Each cycle creates a larger pool of capital. It's a growing family bank, not a one-time inheritance.The contrast between the two paths is concrete. A $1 million death benefit split four ways gives each child $250,000 outright. No strings. No direction. That's cutting the cord of accountability. The money is gone from the system. Whatever you hoped they'd do with it is just a hope.Hold that same death benefit in a trust, with clear intentions that it continues purchasing life insurance, and you have something different. Accountability with guardrails. Clarity and protective measures built into the structure. Not mandating, not controlling from the grave, but providing guidance and continuity.The goal isn't to control what your children do. It's to give wealth a structure that keeps it circulating in the family rather than dissipating in a single generation.Why Banks Hold Hundreds of Billions in Life InsuranceThis is the part many have never heard.Banks need somewhere to park their Tier 1 capital. Tier 1 capital is the core equity capital that absorbs losses and prevents insolvency. Regulators require banks to hold it and demonstrate they can access it quickly. What banks have consistently chosen as one of those safe places is life insurance.Bank-Owned Life Insurance, or BOLI, is how it works. Banks take out policies on highly compensated employees and hold the cash value as a capital asset. They use whole life, universal life, and a product designed specifically for banks. As employees age out, they cycle policies onto new people. Regulators cap life insurance at roughly 25% of Tier 1 capital.The numbers, as of June 30, 2025, are not small:Bank of America: ~$25 billionJPMorgan Chase: ~$12 billionPNC Bank: ~$11 billionTruist Bank: ~$7 billionU.S. banks total: ~$250 billionThese figures are publicly available via bank rankings at usbanklocations.com, presented here as illustration, not endorsement.The institutions whose entire job is managing capital and risk at the highest level have parked a quarter-trillion dollars here for liquidity and stability. That's worth paying attention to. Not because banks are infallible, but because the reason they use it is exactly the same reason the wealthy use it, and the same reason it's worth considering in a personal financial plan.How Famous Entrepreneurs Funded Their Dreams With Policy LoansWalt Disney wanted to build Disneyland, but the banks said no, so he borrowed against his life insurance cash value. Capital he controlled, on his own timeline, repaid on his own terms. No restrictive bank covenants, no lost equity stake, no waiting for approval. He used it to help build what became a multi-billion-dollar empire.The key point: he borrowed from his own capital base while the policy kept doing its job....
Someone put an IUL illustration in front of you. Maybe it was pitched as "market upside with no downside." Maybe as a "Roth IRA on steroids." Maybe as a way to "be your own bank." And now you're trying to figure out whether any of that holds up, or whether whole life, term, or a Roth IRA actually makes more sense.There's one question that organizes all of it: who carries the risk?With whole life, the insurance company carries it. With an IUL, the risk shifts to you. Everything else in this comparison follows from that single distinction: cost structure, cash value reliability, policy loans, and retirement income.https://youtu.be/JxJqweiyXwUThis article covers IUL vs. whole life, IUL vs. term life, IUL vs. a Roth IRA, and the narrow case where an IUL is actually the right call. The goal isn't to tell you IUL is bad. It's to help you see clearly what you're choosing and what job you're asking it to do.Key TakeawaysWhere Does the Risk Live?What's guaranteed vs. what's projectedIUL vs. Whole Life: The Core ComparisonThe cost-of-insurance problemThe 0% floor misunderstandingCaps, participation rates, and spreadsEndowmentLapse ratesIUL vs. Term Life: Two Very Different JobsIUL vs. Roth IRA: The "Tax-Free Income" Pitch, ExaminedWhy IUL Falls Short for Infinite BankingThe double-dip problemLoans on an unstable baseSimplicity vs. active managementWhen an IUL Actually Makes SenseThe Right Tool for the Job You Actually HaveFrequently Asked QuestionsWhat is the main difference between IUL and whole life insurance?Is IUL better than whole life for Infinite Banking?Is an IUL better than term life insurance?Is an IUL a good alternative to a Roth IRA?Can you lose money in an IUL even with the 0% floor?Key TakeawaysWhole life offers three contractual guarantees: guaranteed death benefit, guaranteed cash value, and guaranteed premiums that will never increase.An IUL uses flexible premiums, a variable cost of insurance, and index-linked crediting subject to caps, participation rates, and spreads the insurer can adjust annually.The "zero is your hero" floor only protects against negative index crediting. It doesn't protect against cash value declining due to rising internal costs.IUL is structurally incompatible with Infinite Banking, which requires guarantees. The risk you're trying to move off your shoulders needs to land somewhere solid.IUL can make sense for a narrow, specific purpose, but that purpose is not banking.Where Does the Risk Live?Both products are permanent life insurance. Both build cash value. Both offer tax advantages. That's exactly why people assume they're interchangeable, and exactly why the distinction matters so much.With whole life insurance, the risk of delivering on the policy's promises sits inside the insurance company. You pay your premium. They handle everything else. With an IUL, that risk shifts to you, through index performance, variable costs, and a contract the insurer can adjust every year.Here's a quick test: look at the contract length. A whole life contract is often 50 to 80 percent shorter than a universal life contract. The extra pages are disclosures explaining all the ways the insurer is not responsible, because that responsibility has moved to the index and to you. On whole life, only you can make changes within the contract's provisions. The insurer can't touch your maximum premium, your guaranteed death benefit, or your guaranteed cash value. On an IUL, the insurer can change cap rates, participation rates, spreads, and required premiums at each anniversary date. That's not a loophole. It's in the contract.What's guaranteed vs. what's projectedWhole LifeIULDeath benefitGuaranteedConditional on continued fundingCash valueGuaranteed minimum dollar amountProjected, not guaranteedPremiumsFixed, will never increaseFlexible; insurer can require moreGrowthGuaranteed rate + non-guaranteed dividendsIndex-linked crediting, subject to caps and adjustable annuallyWho manages itThe insurerYouWho carries the riskThe insurance companyMore risk shifted to the policyholderNelson Nash, the founder of the Infinite Banking Concept, was direct about this: never use a universal life product to take the banking function into your life. A bank runs on guarantees. The insurance product acting as your bank should too.IUL vs. Whole Life: The Core ComparisonWhole life is built on guarantees. An IUL is built on a projection.That's the practical difference between knowing your cash value five years from now and running an illustration that depends on index performance, rising costs, and terms the insurer can revise annually.The cost-of-insurance problemWhole life spreads the mortality cost evenly across the life of the policy. It endows at age 120 or 121, so the math is known, the premium is level, and it's fixed from day one. An IUL uses annual renewable term costs that increase every year. Cheap early, expensive later. As you age, that rising cost eats into cash value faster. If the index underperforms, the insurer can require more premium to keep the policy alive, or it lapses.The 0% floor misunderstanding"Zero is your hero" implies you can't lose money. What it actually means is that index crediting won't go negative. But the policy's internal costs still come out: rising cost of insurance, fees, and charges. In a flat year, your cash value can decline even though the index "didn't lose." A floor on crediting is not a floor on cash value.Caps, participation rates, and spreadsWhen the index performs well, you don't capture all of it. A cap sets a ceiling on credited gains. A participation rate credits only a percentage of the gain. A spread withholds credit on the first portion. Some contracts use one mechanism, some use all three. All of them can change every anniversary date. The upside story in the illustration isn't what you're guaranteed to keep.EndowmentWhole life endows at age 120 or 121, meaning cash value and death benefit meet at that point, and a living insured is paid the full value out. The policy has a known end point, so the company can calculate and guarantee your cash value at every step. An IUL doesn't endow. There's no guaranteed future cash value figure at all. That's the number a banking strategy depends on knowing.Lapse ratesResearch from 2021 by Gottlieb and Smetters, published in the American Economic Review, found that 88% of all universal life policies never pay a death benefit. LIMRA's extrapolated data suggests whole life lapses at roughly 60% (Research published in the American Economic Review). The data involves extrapolation, but the direction is consistent: universal life lapses significantly more often, and rising costs over time are a major reason why.For a real-world example of what can go wrong, see our post on the Kyle Busch IUL lawsuit.IUL vs. Term Life: Two Very Different JobsTerm life is pure death-benefit protection. No cash value, lower cost, and it expires. For many families covering a defined window, a mortgage, kids at home, and years to retirement, that simplicity is a feature. Term does exactly what it says it does.An IUL is permanent insurance with a cash value component. But the cost of insurance inside an IUL behaves like an annual renewable term that increases every year. You're paying rising-cost term coverage embedded inside a more expensive, more complex wrapper. That reframes a common pitch: the IUL sold as "term you can get back." Once you understand the internal cost engine, that framing looks very different.When a term policy lapses, it usually means the coverage window was intentional. That's a plan working as designed. When an IUL lapses, something failed. The thing that promised to be permanent didn't make it, and it usually happens at exactly the wrong time.If the job is affordable protection for a defined period, term does it more honestly and more cheaply. Don't buy an IUL believing it's simply a better version of term.IUL vs. Roth IRA: The "Tax-Free Income" Pitch, ExaminedIULs are frequently sold as a Roth alternative: "tax-free retirement income with no contribution limits." It's worth looking at that honestly.A Roth IRA offers genuinely tax-free growth and qualified withdrawals. Full market participation, no cost-of-insurance drag, no lapse risk. The tradeoff is annual contribution limits and income phase-outs that exclude higher earners.An IUL offers fewerIRS contribution limits, tax-advantaged access through policy loans, and a death benefit. In exchange, you take on capped and adjustable upside, layered fees, a rising cost of insurance, lapse risk, and ongoing management requirements.The mechanism that matters most: the "tax-free income" from an IUL comes from borrowing against non-guaranteed cash value. If the policy lapses while loans are outstanding, the gain can become taxable at the worst possible moment, in retirement, when income options are most constrained.An IUL might add value for a high earner who wants an additional tax-advantaged bucket and a death benefit, and can fund it aggressively for 15 or more years. Even then, it's a complement, not a replacement.Roth IRAIULContribution limitsYes (IRS limits)NoUpsideFull market participationCapped and annually adjustableFeesLower FeesLayered (COI, admin, charges)AccessQualified withdrawals tax-freePolicy loans against non-guaranteed valueRiskMarket riskMarket-linked + COI + lapse riskComplexityModerateHighDeath benefitNoYesWhy IUL Falls Short for Infinite BankingTo use a policy for banking, you need to know what your future cash value will be. That's the whole point of the Wealth Creator's Cash Flow System: deploy capital, borrow against a foundation you can plan around, repay, and repeat. That only works if the numbers are certain.Infinite Banking isn't about maximizing return inside
The default wealth-building playbook goes like this: buy something low, hope it's worth more someday, then sell to capture the gain. That's the appreciation model, and it can work. But it's not the only path, and for a lot of business owners and high-income professionals, it's not the most reliable one either.The Money Advantage is built around a different philosophy. Cash flow today is a stepping stone to cash flow tomorrow. Income you receive now compounds, funds the next asset, and stacks on top of what you're already earning, whether or not the underlying value ever moves.https://youtu.be/_ktX62qtXCEThis article covers which assets actually produce reliable income, the honest tradeoffs of each, and the sequence in which to build them. That last part is where people most often go wrong.Table of ContentsKey TakeawaysCash Flow vs. Capital Gains: Two Very Different Ways to Build WealthThe Net Investable Income LoopWhat Makes an Asset Worth Owning for Cash FlowKnow Yourself Before You Know the AssetThe Best Cash-Flowing Assets and the Tradeoffs of EachRental Real EstateBusiness OwnershipPrivate Lending and NotesDividend-Paying Stocks and Traded REITsNon-Traded REITsWhy the Order You Build In Is More Important Than the Assets ThemselvesStage 1: FoundationStage 2: ProtectionStage 3: IncreaseThe Hidden Cost of Funding Your InvestmentsWe're Taught Capital Gains. It's Time to Learn Cash Flow.Frequently Asked QuestionsWhat is the difference between cash flow and capital gains?What are the best cash-flowing assets to start with?Is rental real estate really passive income?What does it mean to own a business versus operate one?What is the difference between traded and non-traded REITs?In what order should I build a cash-flowing portfolio?Do I have to be an accredited investor to invest for cash flow?How does Infinite Banking help fund cash-flowing assets?Key TakeawaysCash flow and capital gains are fundamentally different strategies, with different rules and different timelinesThe best cash-flowing assets offer predictable income, some ability to liquidate, and ideally some underlying growthThere are no perfect assets, only tradeoffsRental real estate, business ownership, private lending, dividend stocks, and REITs each have a place in an income-producing portfolioThe order you build in is as important as the assets themselvesCash Flow vs. Capital Gains: Two Very Different Ways to Build WealthCapital gain: you buy an asset at a cost basis, it appreciates in value, and you sell it. The difference between what you paid and what you sold it for is your gain. To access that money, you have to time the market and sell part or all of the asset.Cash flow: the asset pays you income on a regular schedule, regardless of what the underlying value does. You never have to sell to get the return.That's the core distinction. One requires a sale. The other just keeps paying.Bruce puts it simply: put $100,000 into something generating 12% a year, and you receive $12,000 while keeping the original $100,000. Net worth is now $112,000, and it repeats. With a capital gain, realizing that same $12,000 means selling a portion of the asset and redeploying it somewhere else.The Net Investable Income LoopRachel frames cash flow in terms of what it does to your total income picture. When an asset produces income, it stacks on top of your earned income. A greater share of your total income can then flow into savings, which buys more assets. That process repeats, capital building incrementally, month after month.A salary arrives monthly, a cash-flowing portfolio can too. You're not waiting for a sale to realize value; you're receiving it continuously, and your liquidity is building the whole time.And the usual end goal of an appreciating asset is eventually to convert it into cash flow, to liquidate it someday and live off the proceeds. Starting the cash flow earlier just gives you the predictability sooner.What Makes an Asset Worth Owning for Cash FlowThree qualities define an ideal cash-flowing asset:Steady, predictable incomeThe ability to liquidate if necessaryUnderlying growth, so if you do sell, you sell at a gainYou rarely get all three at once. As Bruce puts it, drawing on economist Thomas Sowell, there are no solutions, only tradeoffs. Wanting instant liquidity means accepting weaker cash flow, because liquid money can't be committed to a long-term position.This is why we talk about liquidity diversification alongside asset diversification and tax diversification. Some capital should be reachable quickly. Some is committed long-term. Spreading across both means a business (which has very little liquidity) isn't your only holding.Know Yourself Before You Know the AssetInvestor DNA, or unique ability investing, is the other half of the equation. Before evaluating any asset, the right questions are: does this match your value system? Does the knowledge required match your expertise, or are you willing to build it?Investing deliberately inside your sphere of knowledge gives you more control, a better read on the risks, and a cleaner exit strategy if you ever need one. "Where do you put your money?" is a question that only makes sense in the context of your goals, your timeline, and your risk tolerance. What works for one person doesn't automatically work for another.The Best Cash-Flowing Assets and the Tradeoffs of EachRental Real EstateReal estate has more entry points than people often expect: single-family rentals, duplexes, multifamily, commercial space, self-storage, mobile home parks, short-term rentals, and syndications. Each has its own risk profile, capital requirement, and management burden.The goal in any of these is to be cash-flow positive: rent covers the mortgage, and insurance, and taxes, and every operating cost, with a surplus left over. That surplus is your monthly income. Add the tax depreciation side, and rental real estate stacks up as one of the more tax-efficient income-producing assets.The honest tradeoff: there's no truly passive income in rental real estate. Tenants, toilets, and termites are real. Even with a property manager, you're managing a person, and that takes time and attention. Bruce has owned close to a dozen properties and eventually moved away from direct ownership for exactly this reason.DIY versus turnkey is a cost-and-return decision. Doing everything yourself preserves margin. Paying for management reduces your burden but eats into cash flow. Neither is wrong; it depends on how much of your time the asset is worth.Real estate pairs well with Infinite Banking. A policy loan funds the down payment. Rental income repays the loan. The cash value in the policy keeps compounding uninterrupted the entire time, so you're building in two places at once.Business OwnershipOperating a business is not the same as owning one.A cash-flowing business pays income without requiring all your time. If every dollar you earn is directly tied to the hour you spent working, that's self-employment, not an asset. The distinction is real, because only one of those is something you can eventually step back from.To move from self-employed to business owner, you need systems, processes, and team. Robert Kiyosaki's cash-flow quadrant makes the point clearly: the right side of the quadrant only works when the business can run without you as the bottleneck.What makes a business valuable is that it's hard. Businesses solve problems people don't want to solve for themselves. Jeff Bezos built Amazon around one insight: people don't want to leave the house for every item they need. The service was obvious in hindsight, painful to build, and enormously valuable precisely because it was. That's the pattern.Treat the business as a business, not a hobby. That means watching expenses, marketing, sustainability, succession planning, taxes, and accounting. Revenue without profitability isn't cash flow.Infinite Banking connects here in several ways: storing liquidity reserves and buffer capital, funding key-man insurance, deferred compensation,, and quarterly tax payments. The policy becomes the business's financial backbone.Private Lending and NotesPrivate lending means providing capital to a borrower, secured against collateral, at a stated interest rate, paid back as monthly income. Often structured as interest-only, which maximizes the cash flow to the lender. The principal is secured by the underlying asset.Terms vary: a fixed payoff date, a refinance trigger, or a short-term arrangement like a fix-and-flip hard money loan. A short-term flip might carry a 12% annualized rate, but since the loan only runs for four to six months, the actual dollar return is less than the rate suggests.IBC practitioners often use policy cash value for private lending. The borrower's repayments come back, pays down the policy loan, and then the cycle repeats, predictable monthly income from a controlled capital reservoir.The tradeoff: this is the debt side of real estate. Some investors prefer equity, owning a piece of something rather than lending against it. Both are valid; the preference depends on your risk tolerance and how you want to be positioned.Dividend-Paying Stocks and Traded REITsDividend-paying stocks, like Coca-Cola and UPS, are common examples that pay a stated yield per share, typically quarterly, semi-annually, or annually. You can take the income as cash or reinvest it through a dividend reinvestment program (DRIP), which automatically buys additional fractional shares.Traded real estate investment trusts (REITs) work similarly: a trust holds a portfolio of real estate, rents are collected, and the yield is distributed to shareholders.The tradeoff is real: both carry market correlation....
Infinite Banking has grown fast. Really fast. And with that growth has come a flood of practitioners, coaches, agents, and advisors all claiming they can help families become their own banker. Some of them are exceptional, some are undertrained, and some are simply using the Infinite Banking label to sell products they were already selling, with a new coat of paint.From the outside, it's genuinely difficult to tell the difference. Their Marketing is polished, and their credentials sound similar. And yet the person you choose to guide you through this process will shape a financial strategy that isn't meant to last a few years. It's meant to last generations. A policy designed today may still be growing in your children's lifetime.That deserves care.https://youtu.be/0jcJDFXixhYWhat follows is a set of questions every Infinite Banking practitioner should be able to answer before you trust them to design your system. These aren't adversarial questions. A well-trained, experienced practitioner should answer every one of them with enthusiasm, because they demonstrate exactly the kind of long-range, client-centered thinking that separates someone guiding a philosophy from someone selling a product.Table of ContentsKey TakeawaysAre You Practicing Infinite Banking Yourself?Are You an Authorized Nelson Nash Institute Practitioner?Are They Asking the Right Questions About You?Can They Explain the Policy Design and Why?Mutual participating companyDirect vs. non-direct recognitionBase premium vs. PUA ratioThe first five years, honestlyWhich Companies Do They Work With and Why?Can They See Your Whole Financial Life?What Happens After the Policy Is Issued?The Questions to Bring to Your First ConversationThe Right Practitioner Will Welcome Every One of TheseBook a Strategy CallFrequently Asked QuestionsWhat is an authorized Infinite Banking practitioner?How do I know if an Infinite Banking advisor is qualified?What questions should I ask before buying a whole life insurance policy for IBC?Why does it matter if my advisor practices Infinite Banking themselves?What should I expect from an Infinite Banking advisor after my policy is issued?Is Infinite Banking the same regardless of which advisor I use?Key TakeawaysWhether a practitioner is actively practicing Infinite Banking themselves is the single most revealing question you can ask.Authorized Nelson Nash Institute practitioners have completed formal training in the philosophy as originally taught; using the IBC label without authorization is worth questioning.Behavior matters more than policy design. A good practitioner asks as many questions about your financial life as you ask them.Policy design fluency, company selection knowledge, and honest discussion of the first five years are all marks of a practitioner who knows what they're doing.Infinite Banking is one piece of a full financial picture. A practitioner who only sees the insurance piece is missing the rest.The relationship doesn't end when the policy is issued. It's just beginning.Are You Practicing Infinite Banking Yourself?This is the most important question on the list. Not "do you have a whole life policy." Most insurance agents do. The question is whether they actively practice Infinite Banking in their own financial lives.There's a meaningful difference between the two. An agent who holds a whole life policy primarily for death benefit coverage is still thinking in product terms. A practitioner who is intentionally capitalizing policies, taking policy loans to fund investments or opportunities, repaying those loans, and systematically growing a network of policies over time is living the philosophy.You can follow what someone's life demonstrates. Believing what they say is a different thing entirely.Bruce has been capitalizing since his father opened a policy on him as an infant. That's not a credential. It's evidence of a practitioner who thinks about capital the way the Infinite Banking Concept requires. When I talk about our family banking system, I'm not speaking in theory. I'm reporting what's actually happening in our financial life.A practitioner who truly owns this will go further than confirming they have a policy. They'll be able to tell you which policy loan they most recently funded, how many policies they are running, and how they think about repayment. The follow-up question to ask: How are you using your cash value right now? What did you most recently capitalize? If those questions produce vague answers, that tells you something.Are You an Authorized Nelson Nash Institute Practitioner?Nelson Nash developed the Infinite Banking Concept and wrote Becoming Your Own Banker. The Nelson Nash Institute trains and authorizes practitioners in the philosophy as he originally taught it. Authorization means completing the Institute's training program. It's not a license in the regulatory sense, but it sets a minimum floor of both knowledge and philosophical alignment.The IBC term carries a copyright. And yet many agents use "Infinite Banking Concept" or "IBC" in their marketing without the Institute's authorization. That raises a fair question: why wouldn't they simply get authorized?Nelson said that the only limit to Infinite Banking is imagination, but he also gave guidelines. The flexibility he intended has led some practitioners to strip away those guidelines entirely and declare that any whole life policy you can borrow against constitutes IBC. Bruce calls this oversimplification. It produces policies that look like Infinite Banking on the surface but don't function like it in practice. The design is there; the philosophy isn't.Authorization is a meaningful bar. It's not the only bar, and there are levels of competency even among authorized practitioners. But a practitioner who markets themselves using intellectual property they've chosen not to be authorized in is worth questioning before you go further.Are They Asking the Right Questions About You?Nelson Nash said it himself: behavior is more important than policy design. A practitioner who truly understands this will spend as much time asking about your financial life as you spend asking about theirs.If the first question you're asked is "how much do you want to put in each year," and then they produce an illustration based on that number, that's not due diligence. That's taking an order.Think about what you'd expect from a commercial bank. If you walked in asking for a $50,000 loan and the banker just transferred the money without asking about your income, your assets, or your ability to repay, you'd be alarmed. And yet that's what some practitioners do for people who are trying to become their own banker. The institution they're helping you replace operates with far more rigor than they're applying to the process.Or consider what you'd expect from a physician. A doctor who hands you a prescription the moment you name a medication, without examining you or understanding your history, isn't practicing medicine. They're taking orders. A practitioner who quotes you an illustration before understanding your full financial picture is doing the same thing.A practitioner asking the right questions will want to understand your income and how it flows, where your money currently sits, your existing insurance and protection picture, any anticipated income changes or windfalls, your tax situation, and your estate and legacy goals. And that's not a one-time conversation. A good practitioner commits to reviewing all of it at a minimum once a year, because life changes, and the policy needs to change with it.Can They Explain the Policy Design and Why?This section covers the technical fluency a practitioner should demonstrate. You don't need to become a policy design expert. But you should know what depth of answer to expect.Mutual participating companyThis is the non-negotiable starting point. Universal life policies, including indexed universal life, carry no guarantees. Whole life from a mutual, participating company is the foundation. Participating means you share in the profits through a dividend. A practitioner who is unclear on why that matters, or who offers IUL as an alternative vehicle for Infinite Banking, is not operating from Nelson's philosophy.Direct vs. non-direct recognitionNon-direct recognition companies credit the same dividend regardless of outstanding loans.Direct recognition companies reduce the dividend on the loaned portion. For active Infinite Banking practitioners who borrow regularly, this distinction is important, especially when a loan carries over from one year to the next and compounds against a smaller dividend. Non-direct recognition is our preference, and it's one of the clearer signs that a practitioner is thinking about how the policy will actually function in use.Base premium vs. PUA ratioPaid-up additions, or PUAs, allow you to pour additional capital into the policy and build cash value faster in the early years. A lower base with heavy PUAs can look attractive on a short illustration. But a higher base creates a larger permanent death benefit and a higher dividend over decades. You can read more about how whole life dividends work and what affects them. That dividend compounds into more cash value over a lifetime.The deeper principle: a practitioner who designs defensively, minimizing the base "in case you can't pay," is building behavioral uncertainty into the structure from day one. A practitioner who helps you think about how much you can capitalize, rather than the least you need to commit, is operating from the philosophy. Over 40 years of consistent funding, the lower base policy can outperform. But the moment funding falters, and it will because life is not a spreadsheet,...
The most expensive financial advisor many people will ever have doesn't send an invoice. It doesn't show up on a fee disclosure. It never introduces itself. But it has shaped more financial decisions, and quietly eroded more wealth, than almost any market downturn, bad product, or conflicted advisor ever could.That advisor is fear. Fear is the most expensive financial advisor you’ll ever have because it rarely looks like panic in the moment. It often feels like wisdom, caution, urgency, or responsible planning. And it tends to show up in two forms.There's the fear of losing what you have, driving over-protection, paralysis, and a growing pile of products you can barely explain. And there's the fear of missing out, driving premature decisions, underestimated risk, and the nagging sense that you need to move before the window closes. Neither version is obviously destructive from the inside. Both feel like good judgment at the time. https://youtu.be/OY4kzrZGsYUThis article isn't an argument against caution, protection, or careful planning. It's an argument for knowing the difference between a decision made from purpose and one made from panic. Because that difference, compounded over years, is enormous.Key takeaways:Fear Is Subjective, and That's Why It's So Hard to AddressHow Financial Fear Gets ManufacturedThe Two Faces of Financial FearWhat Fear-Based Decisions Actually CostThe Opportunity Cost of Displaced CapitalThe Coordination Cost of FragmentationThe Advisory Cost of Fear ManagementThe Confidence Cost Nobody Talks AboutSigns Your Financial Life Is Running on FearThe Antidote Is Clarity of Purpose, Not FearlessnessSafety, Liquidity, and GrowthThe LIFE FrameworkThe Wealth Creator's Cash Flow SystemProtection Is Not Fear, When It's Done RightStart With Clarity, Not FearBook a Strategy CallFrequently Asked QuestionsWhat is fear-based financial decision-making?How does financial fear affect long-term wealth?What is the difference between fear-based planning and prudent planning?What does "clarity of purpose" mean in financial planning?How do I know if my financial advisor is managing through fear?What is the LIFE framework for financial planning?Key takeaways:Fear operates as a financial advisor that most people never identify or fireIt appears at both ends of the risk spectrum: loss aversion and fear of missing outMuch of the financial marketing ecosystem is designed to manufacture and amplify fearThe hidden costs of fear-driven decisions don't appear on any statementClarity of purpose, not fearlessness, is what replaces reactive decision-makingFrameworks like safety/liquidity/growth and the LIFE model transform fear into strategyFear Is Subjective, and That's Why It's So Hard to AddressFinancial fear is not a character flaw. I want to be clear about that from the start. It's a real emotional experience, and throwing a spreadsheet at someone who is genuinely afraid does not help them. That approach respects the numbers, not the person. Behavioral finance research has spent decades documenting this: logic alone doesn't move people out of fear. Education does, but only when the emotion is acknowledged first.Fear is also deeply subjective, which makes it especially difficult to work with. Ask two people how much risk they want to take, use a word like "moderate," and you'll get two completely different answers. And that's before anything has actually happened. Real risk tolerance isn't revealed on a questionnaire. It's revealed when the market moves, when the headline is bad, when the number on the screen is lower than it was last month.There's a question worth sitting with: if your portfolio could go up $50,000, but you had it positioned too conservatively to capture it, versus if your portfolio simply dropped $50,000, which one would keep you up at night? Neither answer is wrong. But your answer tells you something real about which form of fear has more influence over how you make decisions. Loss aversion and the fear of missing out are both fear. They just feel different from the inside.The goal here isn't to eliminate that fear. That's not possible, and it wouldn't be useful even if it were. The goal is to help you recognize when fear is driving your financial decisions rather than informing them. That recognition, small as it might seem, is where things start to change.How Financial Fear Gets ManufacturedSome of the fear you carry is yours. You developed it through experience: a job loss, a market crash, a parent who ran out of money before they ran out of life. That fear is real, and it deserves to be understood on its own terms.But some of the fear in your financial life was handed to you. And it's worth knowing the difference.Much of the financial media and marketing ecosystem runs on fear. Headlines about market crashes, dollar collapse, sequence-of-returns risk, and outliving your retirement savings: these are real concerns, but they're frequently presented in ways designed to provoke a reactive emotional response rather than a considered decision. Fear sells because it works. Money psychology is clear on this: emotions drive financial action more reliably than information. A financial professional who leads with a terrifying scenario creates urgency. A product that promises to solve that scenario feels essential.Before acting on a financial fear, ask yourself whether it was yours before the conversation. Did you have this concern before you saw the headline, heard the pitch, or sat through the seminar? Or did someone hand it to you?None of this means every financial professional who raises difficult scenarios is acting in bad faith. Many of those scenarios are genuinely worth planning for. But there's a meaningful difference between naming a risk so it can be addressed deliberately and naming a risk to generate anxiety that only one specific product can relieve.The result of a financial life assembled from responses to manufactured fear tends to look the same: a collection of individual products that each solved a specific scary problem, with no one asking whether those products coordinate, complement each other, or serve a single unified strategy. A friend of mine once described the advice her sister gave every customer at the furniture store where she worked: start with a vision, know what you want the room to feel like, and choose everything together. Because buying one piece at a time and hoping it comes together almost never produces something coherent. You can furnish a room that way. You just can't furnish a room that works. A financial life built on fear works the same way.The Two Faces of Financial FearMost people think of financial fear as loss aversion, the fear of markets dropping, money disappearing, and security evaporating. And that version is real. It drives people toward over-protection, toward keeping too much in cash, toward accumulating overlapping insurance products because each one addressed a specific nightmare scenario that someone painted vividly enough.But there's an equally destructive form of fear sitting on the other end of the spectrum - the fear of missing out (FOMO).This is the fear that drives people to retire before their plan can genuinely support it, not because the numbers work, but because they're afraid of missing the active, healthy years of their life. It's the fear that pushes people toward high-return investments they don't fully understand because everyone else seems to be participating. It's why some people avoid protection strategies entirely: buying life insurance or long-term care coverage feels like an admission of vulnerability they're not ready to make.Imagine it as a bell curve, with loss aversion on one end and FOMO on the other. Neither extreme produces good decisions. The healthy middle is what I'd call abundance thinking: recognizing that money is a replenishable resource, created through relationships, knowledge, and purposeful action. It doesn't ignore risk. It addresses risk from a position of intention rather than anxiety.What Fear-Based Decisions Actually CostThe real expense of fear-driven financial decisions is that almost none of it shows up anywhere you'd look for it. There's no line item. No statement entry. No advisor who sends you an invoice for the cost of reactive decision-making. The costs are real, they compound, and they're almost entirely invisible.The Opportunity Cost of Displaced CapitalEvery dollar invested in a product purchased out of fear is a dollar that can't be deployed into a more coordinated strategy. If that product carries surrender charges, penalty periods, or reduced liquidity, the cost compounds further. What that capital could have produced in a more purposeful position never appears on any statement. It simply doesn't exist.The Coordination Cost of FragmentationFear-driven purchasing happens one product at a time, in response to one scary scenario at a time. The result is strategies that contradict each other: a product purchased to address a tax concern working against an investment approach, a protection strategy drawing capital away from the foundational work that would amplify everything else. Nobody is watching the whole picture. Nobody has an incentive to. Financial fragmentation is expensive, not because any individual product is wrong, but because nothing is coordinated.The Advisory Cost of Fear ManagementAn advisor who manages primarily through fear has a structural incentive to keep that fear alive. This isn't necessarily malicious, but it's worth recognizing. Fees aren't inherently bad. What matters is whether the fee is buying clarity and coordination, or just temporary relief from anxiety.The Confidence Cost Nobody Talks AboutThis is the most invisible cost of all....
SEC Chairman Paul Atkins and his wife reportedly own 54 life insurance policies. Yes, fifty-four!Most people see that headline and think it's extreme. Maybe even a little absurd. Why would anyone hold that many policies? Who does that?But there’s a more interesting question worth asking - what does someone who owns 54 policies understand about life insurance that most people were never taught?https://youtu.be/DdGxt2346C8Because there are two completely different ways to think about life insurance. One is the way most of us were introduced to it: a product you buy, file away, and hope you never need.The other is what someone like Atkins seems to be doing. Building a financial architecture. A system. An infrastructure designed to do real financial work across an entire family and portfolio.That gap is what this article is about. Not Paul Atkins specifically. But what his disclosure reveals about how financially sophisticated people think about control, liquidity, and the capabilities of permanent life insurance that most of us were simply never shown.Key TakeawaysFrom Checkbox to Capital SystemThe Problem With Only Having One StrategyWhy Wealthy Families Think About Control FirstThe Priority Order That Changes EverythingOpportunities Find CashWhat 54 Policies Might Actually Be SolvingEstate EqualizationBusiness Succession and Deferred CompensationLiquidity Without LiquidationTax-Advantaged Access During Your LifetimeGovernment Service and Conflict-of-Interest DisclosuresWhy the Contract Distinction Changes EverythingWhat Family Banking Looks LikeA Real ExampleThe Internal CycleThinking About Family Members as Key PeopleThe Generational DimensionNot All Life Insurance Is the Same ToolWhy Whole Life With a Mutual CompanyThe Question Isn't Why, It's What.Book a Strategy CallFrequently Asked QuestionsWhat is family banking with life insurance?Why would someone own 54 life insurance policies?How does whole life insurance provide liquidity?What is the difference between a life insurance contract and a financial account?Can life insurance really be used as a tax strategy?What type of life insurance works for family banking?Key TakeawaysWealthy families treat life insurance as a capital system, not a product purchaseWhole life insurance provides a kind of liquidity and control that no other asset class replicatesA life insurance policy is a contract; most other financial assets are accounts, and that distinction mattersMultiple policies signal a coordinated financial architecture, not a single coverage decisionFamily banking uses whole life policy cash value to fund needs within the family without relying on outside lendersNot all life insurance is built for this purpose. A specially designed dividend-paying whole life with a mutual company is the right foundationFrom Checkbox to Capital SystemMost people's first exposure to life insurance comes through a W-2 job. You fill out your benefits enrollment paperwork, someone offers you a multiple of your salary, and the pitch is pretty simple: if something happens to you, this replaces what you would have earned.That's not wrong. But it's a very small part of what permanent life insurance can actually do.The consumer mindset asks one question: how little do I need? What's the minimum that takes care of my family, pays off the mortgage, and maybe funds college? That's a reasonable starting point. But it's also a ceiling. Once you've bought enough to replace income, the logic of that framework says you're done.The business owner mindset asks something completely different. Not how little I can have, but how much I can invest in this to get the most out of it? That question leads somewhere very different, potentially, to 54 policies.The Problem With Only Having One StrategyThere's a Thomas Sowell line worth sitting with here: there are no solutions in life, only compromises. Bruce Wehner brought this up at the top of our conversation, and it's the philosophical foundation for everything else we talked about.Anyone absolutely committed to one financial strategy and dismissing everything else isn't being disciplined. They're playing an incomplete game.Think of it like football. You wouldn't go into the championship using only your running back and offensive linemen. Every position exists because every position has a job. Wide receivers do something the offensive line can't. The quarterback does something neither of them can.Financial tools work the same way. A securities-only investor isn't maximizing anything. They're just leaving part of the field empty.Why Wealthy Families Think About Control FirstMost of us are taught to optimize for rate of return. Net worth is the scoreboard. The fastest-growing asset wins.That framework isn't useless. But it's incomplete, because it ignores the conditions that make returns actually usable.Wealthy families add a different dimension to the scorecard: control. How much autonomy do you have over your capital? Can you access it when you want to? Can you deploy it on your own terms without a bank's approval or an institution's timeline?The Priority Order That Changes EverythingHere's the order I've come to think about for financially sophisticated decision-making. Control first. Then access, meaning liquidity and tax treatment. Then guarantees and long-term certainty. Then, growth on top of all of that.That's the opposite of how most people are wired to think. We go straight to growth. We ask about rate of return before we've even asked whether we can get to the money on our terms.The safety, liquidity, and growth triangle is real. You can't maximize all three in a single financial product. A five-year CD gives you safety and predictability but doesn't grow much. A non-traded REIT might project 18 to 22% IRR, but there's zero liquidity and elevated risk.If you want to hold illiquid, higher-growth positions, you need a guaranteed liquidity cushion somewhere else. Life insurance is often that cushion. Not because it produces the highest returns, but because it's always available and never tied to market conditions.Opportunities Find CashNelson Nash used to say, "Opportunities find cash." If you don't have accessible capital, you don't see the opportunity even when it's right in front of you.But if you're sitting on a pool of liquid capital, you can act. That's not just a defensive position; it's an offensive one. And it's one of the things I've found our clients experience firsthand once they have a working cash flow system in place.What 54 Policies Might Actually Be SolvingWe don't know Paul Atkins' specific financial picture. We're not claiming to. But we can talk through the kinds of financial problems that a sophisticated investor, with a complex estate and a long-term view, might be solving with permanent life insurance. Because each policy is probably doing a job.Estate EqualizationImagine a family business. Two adult children. One wants to run the company; the other doesn't. At death, the default outcomes aren't great. Force both into a partnership and you breed resentment. Have the operating child buy out the other with a loan and you create a cash flow burden from day one. Give one the business and one nothing, and that's obviously not equitable either.A life insurance death benefit can solve this cleanly. One heir receives the business. The other receives a cash equivalent from the policy. No forced partnership. No buyout debt. No hard feelings baked into the inheritance.This is a problem that real estate, retirement accounts, and securities simply cannot solve with the same precision.Business Succession and Deferred CompensationKey man insurance protects a business against the financial impact of losing a critical person, whether that's a top salesperson or a founding partner. The liquidity event from the policy buys time to adapt without being forced to act under pressure.Deferred compensation funded through life insurance is a different use case, but just as valuable. Under ERISA rules, you can't legally contribute more to one employee's 401 (k) than another's. You can't discriminate.But with life insurance, you can. A business owner can set up a policy on a key employee, fund it for five years, and transfer ownership at the end of the term as a form of deferred compensation. It's targeted, legal, and not available through any investment account structure.Liquidity Without LiquidationHighly appreciated assets present a specific problem. Real estate, private equity stakes, business interests: these often aren't liquid. Selling them to cover an opportunity or an emergency usually means a taxable event, often at an inopportune time.Policy cash value doesn't work that way. It's accessible at any time, with no credit approval, no income verification, and no market timing required. You borrow against it for any purpose and repay on your own terms.If your equities are down and you need capital, you don't touch them. You go to the policy.Tax-Advantaged Access During Your LifetimeThe death benefit's tax-free treatment is well known. Less talked about is what you can do with cash value while you're still alive.Policy loans let you access accumulated value without triggering income tax. So instead of selling an appreciated position and incurring capital gains, you borrow from the policy. Whether it's funding an investment, a home renovation, or bringing the whole family together for a vacation, the access doesn't create a tax event.The alternative, pulling from a qualified account, hits you with ordinary income tax plus potential penalties. That's a genuinely different category of financial flexibility.Government Service and Conflict-of-Interest DisclosuresWhen officials step into government roles,...
IUL gets pitched to young professionals, families, business owners, retirees, and pretty much everyone in between. The message is always consistent: this product can solve your financial problems, provide market upside with downside protection, and generate tax-free retirement income. One product, all things to all people.For most people, IUL is the wrong tool entirely.Not because it's fraudulent. Not because it can't work for anyone. But because there's a fundamental mismatch between how it's sold and who it actually serves. And that mismatch shows up in the data. https://youtu.be/fZS1uPmsCS0According to a 2021 study by Gottlieb and Smetters, published in the American Economic Review (1) and drawing on SOA and LIMRA persistency data, nearly 88% of universal life policies never pay a death benefit. That figure covers all universal life products, including IUL. And IUL was built specifically to fix the lapse problems of earlier UL products. It hasn't. The chassis is the problem.This article is a profile-by-profile look at the people who should not buy an IUL, the data that supports why, and a fair look at the narrow group for whom it might make sense. We're not taking sides. We're giving you the information you need to make a decision that actually fits your life.Key Takeaways:What IUL Actually Is, and Why the Chassis MattersThe One-Year Renewable Term ProblemWho Should Not Buy an IUL PolicyAnyone who hasn't mastered the financial basicsAnyone who needs guarantees and predictabilityAnyone practicing or planning Infinite BankingAnyone without a high, stable, long-term incomeAnyone who cannot handle the lapse riskAnyone who misunderstands what market risk means in an IULAnyone building a multi-generational legacyThe Data Nobody Shows You Before You SignThe Headline NumbersA Pattern That Keeps RepeatingTo Be Fair: Who IUL Actually ServesThe Right Buyer ProfileThe Alternative Built for the Rest of UsWhy Endowment MattersThe Reduced Paid-Up Safety NetBehavioral FitThe Decision Is Yours: Make It With the Full PictureBook a Strategy CallFrequently Asked QuestionsWho should not buy an IUL policy?Is IUL worth it for most people?What is the lapse rate for IUL policies?Who is IUL actually designed for?What is the difference between IUL and whole life for banking purposes?Can I use IUL for Infinite Banking?Key Takeaways:IUL is built on a one-year renewable term chassis, meaning internal insurance costs rise every single year as the policyholder agesNearly 88% of universal life policies (including IUL) never pay a death benefit, with 57% of permanent policies (particularly universal life) lapsing in the first 10 yearsIUL cannot endow and cannot be converted to reduced paid-up status, meaning premiums are required indefinitelyThe product demands a level of behavioral consistency over 30 to 40 years that most people, including the most disciplined, cannot sustainIUL is not compatible with Infinite Banking because it lacks the guaranteed, predictable cash value growth the strategy requiresThe narrow group IUL actually serves is sophisticated, high-net-worth individuals using it specifically for estate planning leverageWhat IUL Actually Is, and Why the Chassis MattersIndexed universal life insurance is a form of permanent life insurance where cash value growth is linked to a market index, typically the S&P 500. The policyholder isn't actually invested in the market. The insurance company credits growth based on index performance, subject to a cap (the maximum you can earn) and a floor (usually 0%). You participate in some of the upside. You're protected from direct index losses. That's the pitch.The One-Year Renewable Term ProblemThe structural reality is different from the marketing version. Unlike whole life insurance, which spreads insurance costs evenly across a lifetime so the premium never changes, IUL is built on a one-year renewable term chassis. That means the cost of insurance increases every single year as the insured ages. In the early years, you barely notice. Over decades, and especially in retirement, it becomes a serious structural pressure on the policy's cash value.The flexible premium feature, often marketed as a benefit, is part of the same structural reality. Flexibility sounds good. But it means the policy requires ongoing management and can deteriorate if premiums are reduced or skipped. The policy doesn't just sit there working for you. It demands attention, funding, and active monitoring year after year.For a deeper look at the structural risks, internal charges, and illustration problems with IUL, see our posts on the dangerous truths about IUL risks and Todd Langford's analysis of IUL math.Who Should Not Buy an IUL PolicyThis is the core question. Not "is IUL good or bad?" but "is the person buying it actually a match for what the product demands?" Seven profiles. If you recognize yourself in any of them, that's information worth taking seriously.Anyone who hasn't mastered the financial basicsIUL is an advanced financial product. It should not be anyone's first or second financial move. Before using a structure that combines insurance, investing, and tax planning, a person needs the basics in place: spending less than they earn, building consistent positive cash flow, and saving habitually.Parkinson's Law, the tendency for expenses to rise to meet income at every level, is real. IUL does not fix a cash flow problem. It adds complexity on top of one. If you haven't overcome the basic discipline of keeping your income above your expenses and putting the gap into savings, a complex product isn't a solution. It's a distraction from the actual problem.Anyone who needs guarantees and predictabilityIf you need to know with certainty what your policy will be worth in 10, 20, or 30 years, IUL cannot give you that. There is no guaranteed cash value dollar amount in an IUL. The crediting depends on index performance, caps that can change annually, and internal costs that increase over time.If your financial planning requires a predictable future asset base for retirement, a major capital need, or a legacy strategy, a product built on variables is the wrong foundation. The middle class, upper middle class, and anyone with fluctuating income fall into this category. And that's most people.Anyone practicing or planning Infinite BankingIUL is actively marketed as a vehicle for Infinite Banking. It is not. Infinite Banking requires a pool of capital that is predictable, guaranteed, and always growing. The arbitrage that makes policy loans powerful, earning in two places at once, only works when the policy's growth is reliable.In a year where the index earns zero, a policy loan doesn't just cost the loan interest. It costs the loan interest with no offsetting policy growth. The banking system breaks down exactly when it should be working hardest. For a full breakdown, see our post on why IUL is incompatible with Infinite Banking.Anyone without a high, stable, long-term incomeIUL requires consistent, maximum funding over a very long time horizon to have any chance of performing as illustrated. Life disruptions like job changes, business downturns, family expenses, and medical costs interrupt premium payments. And because the policy relies on the index to help fund its own rising costs, any gap in funding creates a cascade effect that's very difficult to reverse.Even Nelson Nash, the creator of Infinite Banking, once missed funding PUAs on one of his own policies, causing the rider to close. If the creator of the strategy had trouble keeping up with premiums, the expectation that ordinary policyholders will fund an IUL perfectly for 30 to 40 years is unrealistic.Anyone who cannot handle the lapse riskNearly 88% of universal life policies never pay a death benefit, and IUL is part of that picture. That number should stop anyone from considering this product and make them ask: why? The answer is structural. Rising internal costs, non-guaranteed crediting, and the behavioral reality of managing a complex financial product over decades.And lapsing isn't just losing the policy. When a policy lapses with outstanding loans and cash value above the cost basis (the total premiums paid), the gain is treated as taxable ordinary income in the year of lapse. That tax bill arrives at the worst possible time, often in retirement, when income is fixed and absorbing it is most painful.Anyone who misunderstands what market risk means in an IULMany buyers hear "zero is your floor" and believe their money is protected from losses. This is technically true and practically misleading. The 0% floor only protects against index-linked losses. It does not protect against the internal drag of rising mortality costs, administrative fees, and hedging strategy expenses, all of which continue to come out of the cash value regardless of what the index does.A zero-credit year is effectively a negative year once internal charges are factored in. And when markets perform poorly over multiple years, the insurance company's cost of maintaining those hedges rises. They respond by lowering caps. Lower caps mean less upside potential. This cycle of poor performance, higher hedge costs, and lower caps compounds over time.Anyone building a multi-generational legacyLegacy planning requires certainty across decades and generations. A policy that cannot endow, cannot be converted to reduced paid-up status, and requires active management indefinitely is not a reliable foundation for generational wealth transfer.Whole life policies endow at age 120 or 121. The cash value and death benefit converge, and the policy is contractually complete. IUL policies do not endow. Premiums are required for as long as the insured lives. There is no actuarial endpoint. ...
There's a belief in the financial world that complexity equals sophistication. The more moving parts a strategy has, the smarter it must be. The harder it is to understand, the more impressive the advisor must be. And if you can't quite follow what's happening with your own money, well, that's just the price of having a "real" plan.What if that's exactly backwards?https://youtu.be/fI41Ex3OrjQWhat if the complexity in your financial life isn't protecting your wealth but quietly eroding it? What if those layers of products, advisors, and strategies you've accumulated over the years have hidden costs that compound silently, year after year, in ways you've never been able to see?That's what we're talking about today. How complexity often shows up as fragmentation. How it creates blind spots and missed opportunities. And why it can lead to something far more dangerous: disengagement from your own financial life.This isn't an argument against all complexity. Some financial situations genuinely require sophisticated strategies, and we'll get into when that's the case. The real question is whether the complexity in your plan is serving you or serving someone else.Key takeaways:How Complexity Gets Sold as IntelligenceThe HVAC TestThe Incentive Structure Behind ItThe Real Cost of Financial FragmentationTerritory ProtectionThe Hidden Costs That Quietly CompoundFees You Can't Account ForMissed Opportunities From Blind SpotsDisengagement: The Most Dangerous CostA Framework That Actually Cuts Through the NoiseSafety, Liquidity, and GrowthThe LIFE FrameworkThe Wealth Creator's Cash Flow SystemWhen Complexity Is Legitimate and How to Tell the DifferenceThe Estate Tax ExampleThe TestPractical Signs Your Financial Plan Is Working Against YouThe Most Sophisticated Thing You Can DoBook a Strategy CallFinancial Strategy CallFrequently Asked QuestionsWhy is financial complexity a problem for high earners?What is financial fragmentation, and why does it hurt your plan?How do I know if my financial plan is too complex?What is the safety, liquidity, and growth framework?When does financial complexity make sense?What does a simple but sophisticated financial plan look like?Key takeaways:Complexity in financial planning is often a feature that benefits the advisor, not youFragmentation across siloed advisors is the most common and costly form of unnecessary complexityEvery dollar you have can be evaluated through three lenses: safety, liquidity, and growthThe LIFE framework (Liquidity, Income, Flexible, Estate) turns thousands of decisions into four clear questionsLegitimate complexity exists, but it should always solve a specific, identifiable problemIf you can't summarize your financial strategy in two or three sentences, something needs to changeHow Complexity Gets Sold as IntelligenceThere's a problem-solving principle called Occam's Razor. When two competing explanations exist for the same thing, the simpler one is usually correct. The same principle applies to financial planning. The simplest solution that achieves the objective is almost always the best one.But that's not how the financial services world typically operates.The HVAC TestThink about it like calling an HVAC technician. If they explain the repair using so much jargon that you can't even formulate a question, you're stuck. You can't evaluate what they're telling you. You can't push back. You just nod and write the check. But the underlying principle of how an HVAC system works is actually simple. When matter changes state, it absorbs or releases energy. You don't need to build the system yourself. You just need to understand the basic principle well enough to ask the right questions.Financial planning works the same way. When an advisor uses terminology you can't challenge or restate in your own words, you've effectively outsourced your judgment to them. That's not empowerment. That's blind trust dressed up as expertise.The Incentive Structure Behind ItAdvisors who make their area of work seem uniquely complex position themselves as irreplaceable. This isn't always intentional, but the result is the same: a client who needs them rather than a client who understands. The more complex they make it sound, the harder it is for you to redirect your capital or question their recommendations.The goal of financial education isn't to replace advisors. It's to make you your own best financial advocate. When you understand the basic principles, you ask better questions, make more confident decisions, and you're far less vulnerable to complexity that doesn't serve you.The Real Cost of Financial FragmentationThe typical high-income financial picture looks like this. You've got an estate attorney (if you've gotten around to it). A banker for loans. A tax preparer, and maybe a separate tax strategist. A property casualty insurance agent. A life insurance agent. A wealth advisor. And a 401(k) administrator. Each one doing their best within their own slice of the picture.None of them see the whole thing.When advisors don't coordinate, strategies contradict each other. A wealth advisor pushing maximum investment contributions may be working directly against a tax strategist's plan. A life insurance agent focused on maximizing the death benefit might be ignoring cash flow implications that the banking relationship depends on. Not because anyone is incompetent. Because nobody is holding the full picture together.Territory ProtectionEach advisor has an incentive to protect their domain. The complexity they bring demonstrates their value. A wealth planner managing your investments doesn't want to hear that some of that capital should go into life insurance or back into your business. They're going to make their case for why it needs to stay with them, even if that's not what your overall situation calls for.This is fragmentation dressed up as sophistication. A plan with six siloed advisors and no coordination isn't sophisticated. It's fragmented. And the difference matters enormously in outcomes.The ultra-wealthy don't have this problem because they use a coordinated team. One hub that ensures every spoke of the wheel turns together. At The Money Advantage, that's exactly the model we bring to business owners and high-income professionals who aren't managing an eight-figure estate but can't afford the costs of fragmentation either.The Hidden Costs That Quietly CompoundThe costs of financial complexity aren't always obvious. They accumulate in layers, and most people never add them all up.Fees You Can't Account ForComplexity creates layers of fees that are individually defensible but collectively significant. Advisory fees, product fees, transaction costs, and tax drag from uncoordinated strategies. Each one seems reasonable in isolation. Together, they represent a meaningful drag on your returns that you've probably never calculated.The important nuance: fees aren't inherently bad. If a fee-bearing strategy delivers what you need, the fee isn't the issue. Just like tax aversion shouldn't prevent you from making more money, fee aversion shouldn't prevent you from accessing strategies that genuinely serve your goals. The problem is paying fees for complexity that doesn't serve you, and not being able to tell the difference.Missed Opportunities From Blind SpotsWhen advisors don't coordinate, opportunities fall through the gaps. A tax-efficient structure that one advisor could have implemented conflicts with a position another advisor already set up. Capital that could have been deployed into a higher-returning strategy sat in a low-yield holding because nobody was looking at the full picture. You never see the return you didn't get. But the opportunity cost compounds over time just as relentlessly as the fees do.Disengagement: The Most Dangerous CostThis is the one that compounds most destructively. When a financial plan is too complex to understand, people disengage. They stop reviewing statements. They stop asking questions. They say yes to recommendations they don't fully understand because pushing back feels like exposing their own ignorance.Financial disengagement isn't a character flaw. It's a rational response to overwhelm. But it leaves your wealth in the hands of people whose incentives may not align with your long-term interest. And once you've disengaged, you're deferring everything. That's not a plan. That's abdication.A Framework That Actually Cuts Through the NoiseSo what does a clearer approach look like? It starts with frameworks that can simplify virtually any financial decision you'll face.Safety, Liquidity, and GrowthEvery dollar you have needs to be evaluated through three lenses. Is it safe? Is it liquid? Does it grow? You can't get all three from one instrument.Put your money under the mattress. Is it safe? Relatively.Is it liquid? Yes. Does it grow? No. Put it in a bank. It's safe up to $250,000 per account, it's liquid (mostly), but it doesn't grow in any way that outpaces inflation. Put it into a business. It can grow, but it's neither safe nor liquid. The stock market? Liquid and historically grows over long enough time periods, but it's certainly not safe. And "long enough" matters. Tell me your time period, and I'll tell you whether growth is realistic.When you stop asking "which product is best?" and start asking "what does this dollar need to do?" the decision-making process becomes dramatically clearer.The LIFE FrameworkOnce you understand safety, liquidity, and growth, the next step is knowing how to allocate your capital across four purposes:L = Liquidity. How much money do you need immediately accessible? This comes first. Not last.I = Income. How much should generate consistent income?...
You set up your 401(k) contributions years ago. They go out of your paycheck automatically, before you even see the money. You've been doing this for years. And you've been telling yourself you're saving for retirement.You're not saving. You're investing. Automatically, often without much thought, into a market-linked account where the value can drop without you withdrawing a single dollar.https://www.youtube.com/live/ISSLntYMpigThat distinction isn't just semantic. It explains why so many high-earning, responsible people feel like they're not making real financial traction even when they're doing everything they were told to do.I've worked with clients across this exact transition for years. And what Bruce Wehner and I talked through on the podcast this week gets to the root of it. Not which products to use. The order.Save automatically. Invest intentionally. Get that order right and everything changes.Key TakeawaysThe Difference Between Saving and Investing (And Why Most People Get It Wrong)What About Inflation?The Language ProblemWhy the Default Financial Playbook Works Against YouThe Automatic Investing TrapThe Syndication Cautionary TaleThe Savings VoidHow the Wealthy Reverse the SequenceThe Personal Economic ModelThe Client Who Saved His Way to RetirementLifestyle Creep: The Silent UnderminerWhy You Save Automatically, and What That Frees You to DoThe Counterintuitive LogicWhat Gets Freed UpWhy Interrupting the Compounding Curve Costs More Than You ThinkWhat Interruption Actually CostsWhat It Means to Invest Intentionally, and How to Know If You AreInvestor DNAReal Due Diligence in the Current EnvironmentSafety, Liquidity, and GrowthThe Savings Vehicle That Bridges Both StagesHow It Works in PracticeThe Death Benefit BackstopWhere Saving and Investing Fit in the Wealth Creator's Cash Flow SystemChange the Order, Change the OutcomeBook A Strategy CallFrequently Asked QuestionsWhat is the difference between saving and investing?Why is automatic 401(k) investing not the same as saving for retirement?How do I start saving automatically?What does intentional investing actually mean?How does whole life insurance fit into saving automatically?Why do wealthy people save before they invest?Key TakeawaysSaving and investing are not the same thing. Saving has a dollar-value floor - your $100 stays $100. Investing doesn't - the value can drop without you touching a cent. Most people have been calling one thing the other.The order you do them in determines your financial outcome. The default playbook is: invest automatically first, spend second, save whatever's left. The wealthy do it in reverse: save automatically first, spend from what remains, invest intentionally from the surplus.Automatic 401(k) contributions are investing, not saving - and doing them without due diligence, in a market-linked account you don't control, is a bet most people don't realize they're making.Automating saving is a cognitive strategy, not a cop-out. It removes a high-stakes decision from your mental queue, so your best thinking goes toward evaluating actual investments, where discernment genuinely matters.Interrupting the compounding curve is more costly than it looks. The exponential gains happen late in the cycle. Most people never get there because they restart the clock repeatedly by spending, redirecting, or skipping months.Intentional investing means deploying capital into things you understand, with control, sized to what you actually have, not automatically following historical performance into deals you don't fully understand.The Difference Between Saving and Investing (And Why Most People Get It Wrong)Let’s start with a precise definition, because the confusion between these two things is where most of the problem lives.Saving is placing money somewhere it cannot lose dollar value. If you put $100 into a savings vehicle, those $100 will be there when you come back. The amount won't become $60 or $80 because of market conditions. You haven't taken the money out. No one stole it. It's just there, in full, because you put it there.Investing is different. When you invest, you're placing capital somewhere it has the potential to grow, but also to lose value. Not because you withdrew anything. Because the asset itself dropped. You can wake up to an account statement showing your $100 is worth $50, and that's investing.What About Inflation?This is where people push back, and it's a fair point. Inflation erodes the purchasing power of savings over time. That's real.But what often gets missed is that inflation erodes investments too. The same monetary forces that reduce what your saved dollars can buy are working on your invested dollars simultaneously. And an investment loss on top of inflation doesn't solve the inflation problem. It doubles it.Losing hundreds of thousands of dollars in a badly-timed deal isn't an inflation hedge. It's your money going backward at speed.The distinction we're drawing is about the dollar-value floor. Savings has one. Investing doesn't. That's it.The Language ProblemThe reason this gets so muddled is that the phrase "saving for retirement" has become the universal shorthand for 401(k) contributions, which are, by this definition, investing.Money in market-linked funds can drop. It has dropped. For many people, it's dropped dramatically at exactly the wrong moment. Calling that saving doesn't make it safer. It just makes it harder to think clearly about what you're actually doing.Why the Default Financial Playbook Works Against YouHere's how most working Americans handle their money, in order:First, a payroll deduction flows automatically into a 401(k) or similar vehicle before the money arrives in their account. Then spending happens. Then, if anything is left at the end of the month, it might get saved. Maybe.The sequence is: invest first, spend second, save whatever remains.The problem isn't the investing. It's what that order produces in practice.The Automatic Investing TrapThat first move, the automatic 401(k) contribution, is made without active due diligence, without specific knowledge of the underlying assets, and without meaningful control over timing or allocation. For most people, the decision is: pick a fund from a list, or accept the target date fund default. That's it.Target date funds are a genuine improvement over doing nothing. They diversify automatically and grow more conservative as you approach retirement. Financial advisors help take emotion out of the process, which matters more than most people realize. These are real improvements.But they don't solve the core problem. You've still lost control of that capital. You face future tax liability. And if you need access to it before retirement, the options are limited, costly, or both.The Syndication Cautionary TaleBruce has been in over 6,000 client meetings. And one thing he's seen play out repeatedly in recent years is what happens when the "must always be invested" mindset runs into a changing economic environment.A lot of people deployed capital into real estate syndications because the historical performance looked strong and the tax benefits were real. What they didn't fully evaluate was what happens when interest rates rise sharply, and when deals structured around balloon-payment loans need to be refinanced.Rates went up. Sponsors couldn't refinance. Distributions stopped. In many cases, that capital is effectively gone. Not because real estate is a bad investment category. Because people committed capital without evaluating the current monetary environment, and instead relied almost entirely on historical performance as their due diligence.The people who pushed that money in because they felt they couldn't afford to leave it sitting somewhere safe are the ones who lost. Their money didn't just fail to outrun inflation. It evaporated.The Savings VoidBecause saving is residual in the default sequence, it often doesn't happen at all. By the time spending is done, there's nothing left to put aside.And that's the trap. When a genuinely good investment opportunity appears, there's no capital ready to move on it. The people who can act are the ones who built up savings first - liquid, available, usable cash that's safe and in their control. The others watch the opportunity pass.How the Wealthy Reverse the SequenceThe pattern Bruce sees consistently across his wealthiest clients is the opposite of the default.They save automatically first. They determine spending second. They invest intentionally from what remains. The order of priority is reversed, and everything that follows is different because of it.The Personal Economic ModelThink of your money as moving through a system. Income arrives. Taxes come out. Then every dollar faces a decision.The first and most important decision isn't to save or invest. It's: how much of this am I going to spend?Spending less than 100% of what you earn is the prerequisite for everything else. It sounds basic, but it's the step most people skip conceptually, even when they think they're doing it. The Richest Man in Babylon put it plainly: set thy purse to fattening. A part of all that you earn is yours to keep. Mike Michalowicz made the same argument for businesses in Profit First. If you wait to see what's left after spending, there won't be anything left. There never is.Once you've decided what you're keeping, the next question is the order. Save first, spend from what remains, then invest intentionally from the surplus you've built.The Client Who Saved His Way to RetirementBruce shared a story that most financial commentators would dismiss as a cautionary tale, but it's actually the opposite.One of his clients kept his 401(k) in a money market account for his entire c
When most people hear "dividend," their brain goes straight to stocks. That's understandable. And completely wrong when applied to whole life insurance.https://www.youtube.com/live/HPXaTnOOU4UThat one assumption causes real problems. People chase companies with the highest declared dividend rate. They compare illustrations side by side and pick the bigger number. They make decisions based on a metric that, on its own, tells them almost nothing about how their policy will actually perform.This article gives you a clear picture of what whole life dividends actually are, what they're not, and what really determines whether your policy works for you over the long run. The conclusion is probably not what you'd expect: the most important factor isn't the dividend rate, the company, or even the policy design.It's your own behavior.For a deep dive into how dividends are calculated and the four biggest myths about dividend rates, see our earlier conversation with Perry Miller here.Table of ContentsKey TakeawaysWhat Whole Life Dividends Actually AreHow the Money Actually MovesNot Guaranteed, but Highly ProbableThe Coca-Cola AnalogyWhat Whole Life Dividends Are NotNot Stock DividendsNot a Simple Interest Rate on Your Cash ValueNot in Addition to the Guaranteed Interest RateHow Dividends Are Actually Allocated to Your PolicyThe Endowment RequirementWhy Younger Policyholders Get a Smaller ShareWhy Base Premium Gets Higher Crediting Than PUAsThe Direct vs. Non-Direct Recognition DistinctionWhy the Dividend Rate Is the Wrong Thing to CompareThe Factor That Matters More Than Any of This: Your Own BehaviorWhy Premium Consistency MattersWhy Loan Repayment Matters Just as MuchThe Bottom Line on BehaviorHow to Use Your Dividends StrategicallyStop Chasing the Rate. Start Building the SystemBook a Strategy CallFrequently Asked QuestionsWhat are whole life insurance dividends?Are whole life dividends guaranteed?How are whole life dividends different from stock dividends?Does a higher dividend rate mean a better whole life policy?What is the best way to use whole life dividends?What is direct vs. non-direct recognition in whole life insurance?Key TakeawaysDividends are return of excess premium. What happens between your payment and your dividend is capital management, not a refund.A 6% declared rate does not mean 6% cash value growth. Actual growth depends on Age, base-to-PUA ratio, and other policy design options. Loan activity can also affect results with direct recognition companies.The guaranteed interest rate is not separate but makes up part of the declared dividend. 2% guarantee plus 6% dividend does not equal 8%.Younger policyholders get less of the dividend pool. Older policyholders get more. Endowment math.Base premium gets higher crediting than PUAs because the company can count on it.Never compare direct and non-direct recognition illustrations without modeling loan activity in both.Your behavior matters more than the rate, the company, or the design.What Whole Life Dividends Actually AreFor tax purposes, the IRS classifies whole life dividends as a return of excess premium. That label gets used against whole life all the time. "See? They're just giving your money back."It's not. If you paid $500,000 into a policy over twenty years and now you have $1.7 million in cash value, nobody just gave your money back. You have far more than you paid in.How the Money Actually MovesInsurance companies are extremely conservative in their projections. They overestimate mortality costs, overestimate expenses, and lowball what their investment portfolio will return. That's deliberate. It protects your money for the long run.The CIO deploys premiums into a portfolio that's roughly 75 to 85 percent fixed income: bonds, mortgage-backed securities, and some real estate. A small sliver sits in equities. The company pays death benefit claims, pays operating expenses, and sets aside money into reserves. Then the board declares how much of the remaining surplus goes back to policyholders.Three factors drive that surplus: investment performance against projections, operating expenses against budget, and actual mortality experience against actuarial estimates. Beat expectations on any of those, and policyholders share in it.Not Guaranteed, but Highly ProbableDividends sit outside the contractual promises; unlike the death benefit, the cash value growth, and the level premium, they're not guaranteed. But mutual companies have paid them consistently for over 100 years. Through recessions. World wars. The 2008 crisis. A decade of near-zero rates. They adjusted downward. They didn't vanish.The Coca-Cola AnalogyCoca-Cola has excess profits because they charge more per can than they need to. That's how they fund dividends to shareholders. A mutual insurance company works the same way. It prices conservatively, manages capital, and returns the surplus.But here's the difference. As a policyholder of a mutual company, you're not just a customer. You're a part-owner. You participate in your company's profits.What Whole Life Dividends Are NotNot Stock DividendsStock dividends are volatile, taxable in the year received, and are subject to cuts or elimination in a bad year based on economic factors that swing wildly. Whole life dividends from mutual companies are non-taxable (classified as return of premium), built on actuarial science rather than market speculation, and backed by a stability track record that equity dividends simply can't match.Even during the financial crisis of 2008, when bond rates dropped and stayed down for over a decade, mutual companies adjusted their dividend rates. They didn't collapse. They didn't plummet to near zero. They adjusted.Not a Simple Interest Rate on Your Cash ValueThis is the misconception that causes the most confusion. If a company declares a 6% dividend, that does not mean your cash value grows by 6% that year.You can't just take 6% and apply it to your current cash value. There's a list of reasons why. That declared rate is gross, before administrative fees, before mortality costs, and before the actuarial mechanics that make your policy endow at age 120 or 121. The actual impact on any individual policy depends on the policyholder's age, the ratio of base premium to PUAs, other policy design options. Additionally, if with a direct recongnition company, whether there are outstanding loans.Same rate but very different outcome depending on who you are and what you're doing with the policy.Not in Addition to the Guaranteed Interest RateThis trips people up constantly. They see a guaranteed interest rate of 2% and a declared dividend of 6% and assume they're getting 8% growth.That's not how it works. The guaranteed rate is already inside the dividend. The company guarantees it can make at least 2%. If it earns enough to support a 6% crediting rate, the additional performance above the 2% floor is what generates the dividend. So the real outperformance is 4 percentage points and not 6 stacked on top of two.How Dividends Are Actually Allocated to Your PolicyThis is the part that goes beyond what most dividend conversations cover. And it matters if you want to understand what your dividend actually means for your specific policy.The Endowment RequirementEvery whole life policy is contractually engineered to endow at age 120 or 121. That means your cash value and your death benefit will be equal at that point. This isn't a footnote buried in the contract. It's the mathematical engine driving how dividends get allocated. The company has to make sure every policy's cash value reaches the death benefit by that endowment date, regardless of what the markets do along the way.Why Younger Policyholders Get a Smaller ShareContrast a 20-year-old and a 60-year-old. Both paying $10,000 per year into a whole life policy. The same premium and the same declared dividend rate.They receive very different dividend credits.The 20-year-old has 100 years until endowment. That cash value has an enormous runway to compound. Less dividend is needed today because time does the heavy lifting. The 60-year-old has only 60 years. Their cash value needs a bigger share of the dividend pool to close the gap between cash value and death benefit faster.Same rate but a very different allocation. And it's not unfair. It's contractual. The policy promises to endow at a specific age, and the actuarial math allocates accordingly.Why Base Premium Gets Higher Crediting Than PUAsBase premium is the portion you're contractually obligated to pay every year. The company knows it's coming. The CIO can plan investment decisions around that certainty and deploy capital with confidence.Paid-up additions are optional. You don't have to pay them. The Chief Investment Officer can't rely on PUA contributions the same way when making long-term decisions.There's a second factor too, with base premium, the death benefit relative to the premium amount is much higher. A policyholder paying $100,000 in base premium might carry a death benefit of $800,000 or $1 million. That cash value has to close a gap of $700,000 to $900,000 by endowment. But $100,000 of PUA premium might only buy $200,000 of death benefit, because it's already paid up. It only needs to grow by $100,000 over the same period.So the dividend has to work harder on the base side. More crediting goes there, especially in the first 20 to 30 years. If someone funds PUAs religiously for three decades and the PUA's death benefit grows to exceed the base death benefit, the crediting can equalize. But until then, base drives the dividend engine.The Direct vs. Non-Direct Recognition DistinctionA non-direct recognition company credits the same dividend whether you've borrowe
Every investor faces the same quiet trade-off. The moment you move capital from savings into a deal, the money stops growing where it was. It is now in the deal,or it is in the bank, but it is not doing both. That is the either/or trap of conventional investing, and almost nobody questions it.There is a way out of it.https://www.youtube.com/watch?v=TErbvj7rheI&list=PLPvxD-a8qNrkdcvfxh4dG52MGGqHkS3TX&index=2&t=6sDone correctly, the Infinite Banking Concept breaks that either/or equation. Your cash keeps compounding inside a properly structured whole life insurance policy while you deploy borrowed capital into investments. The same dollars work in two places at once.This article walks through the mechanics, including the policy loan structure, the hidden cost of paying cash, the structural leverage of the death benefit, and what the system requires in practice. Rachel and Bruce both use this strategy in their own financial lives. It isn't theory.Key TakeawaysResetting the CurveThe Honest Math An Important Caveat The Mutual Difference How does Infinite Banking boost investment returns?What does "earning in two places at once" mean in whole life insurance?Is a policy loan free money?Why is paying cash for investments not always the best strategy?How is a policy loan different from a HELOC?What kind of whole life policy works for Infinite Banking?Key TakeawaysConventional investing forces an either/or choice. Your capital is in savings, or it is in the deal, never both.A policy loan doesn't drain your cash value; it places a lien against it. The full balance keeps compounding while the borrowed capital goes to work.This is how a properly structured whole life policy can boost investment returns. You earn from two assets at once.The math is honest, not magical. Loan interest is real, and the policy needs years to capitalize before it pulls ahead.Behavior matters more than design. You have to act like a banker, because in this system, you are one.Where Infinite Banking Fits in Your Cash Flow SystemThe Wealth Creator's Cash Flow System divides personal finance into three stages. Stage 1 (Foundation) keeps more of what you earn. Stage 2 (Protection) insures and structures against risk. Stage 3 (Increase) makes your money work harder.Most Stage 2 tools do one job. IBC stands out: it's built on a whole life policy in Stage 2, but boosts Stages 1 and 3 too.Stage 1 link comes from Nelson Nash: 34.5 cents per dollar leaks to financing costs like mortgages, car loans, cards, and bank spreads. Swap a commercial loan for a policy loan, and those profits stay in your system, not with distant bank shareholders.Stage 3 is direct too. Policy loans fund investments without interrupting the policy's compounding. Cash value grows as your capital works elsewhere—Stage 3 power baked into Stage 2.Rachel calls it the cash flow sandwich: Foundation and Increase as bread, IBC as the filling that completes it.Why Paying Cash Isn't Actually FreePlenty of investors believe they have no financing costs because they pay cash for everything. They are correct that they aren't paying a bank. They are wrong that the cost is zero.When you pull $100,000 out of a savings account to fund a real estate deal, that $100,000 stops earning whatever it was earning. In today's environment, that is something close to 1%, which doesn't keep pace with inflation. You're paying with purchasing power that is quietly losing ground every year.But the rate is the smaller half of the problem. The deeper issue is the reset.Resetting the CurvePull up an exponential growth curve. Slow at the bottom. Then steeper. Then steeper still. The hockey stick portion (the place where compounding actually does what people imagine compounding does) only shows up after years of uninterrupted growth. Most investors never get there. They put money in, then pull it out for a deal. The curve resets to zero. The deal closes, then the money goes back in. The curve resets again. In, out, reset, repeat.The compounding never actually happens. At least, not really. They are stuck on the flat part of the curve, dragging money back to the start every time an opportunity comes along.There is a parallel cost on the bank side. When you deposit money into a commercial bank, you are effectively lending that capital to shareholders you have never met. They deploy it. They keep the spread. You receive whatever rate they feel like offering, which is typically less than inflation. You take all the risk, and they keep the profits. Paying cash doesn't escape that system; it just hides the cost inside it.How Your Money Earns in Two Places at OnceImagine your cash value as a full cup. For illustrative purposes, say after 10 years it holds $1 million. The cup is growing, with guaranteed interest from the policy, plus non-guaranteed whole life insurance dividends from the mutual company's performance. That is the policy doing its protective job and accumulating value at the same time.Now you take a policy loan. $500,000.Watch carefully, the cup does not drain; it stays full. What changes is that the top half turns a different color. You might think of it as a lien. The insurance company has extended you $500,000 from their general fund, secured by the top half of your cash value. The full million is still inside the policy. The full million still earns interest and dividends.The borrowed $500,000 goes somewhere it can produce a return. A rental property, a business acquisition, a private lending deal, or equipment for an existing operation. That capital is now generating its own income or appreciation.You are now earning in two places at once. The investment is producing a return on the deployed capital. The policy is producing a return on the full cash value, exactly as if you'd never touched it. That is the mechanism that lets a properly used whole life policy boost investment returns far beyond what either piece could produce alone.The Honest Math A note on the math, because this is where some IBC explanations get sloppy.The loan is not free. The policy can continue growing on the full cash value, but the insurance company still charges interest on the policy loan.For example, if the policy has $1,000,000 of cash value and you borrow $500,000 at 6.5%, the loan would create $32,500 of annual interest if no payments are made. If the policy grows by $40,000 that year, the policy growth is still $40,000. It is not reduced by the loan.But your net position is not simply, “I earned $40,000 and got $500,000 to invest.” You also have to account for the loan interest. And if you are being a good banker by making loan payments, the actual interest cost would be lower because the outstanding balance is being reduced over time.So the honest math is this: the policy keeps growing, the loan creates a lien and an interest cost, and the deployed capital has the opportunity to produce its own return outside the policy.That outside return is where the real upside lives. The power is not that the loan is free. The power is that the same dollar can remain at work inside the policy while also being redeployed into productive assets, as long as you manage the loan responsibly.The strategy is net positive when the policy is well capitalized, the loan is managed responsibly, and the investment return exceeds the loan cost. None of those conditions are guaranteed. All of them are achievable.Then comes the recycling. As cash flow from the investment repays the loan, the lien lifts. The colored portion of the cup returns to its original color. Once the loan is paid back, that capital is fully available again, ready for the next opportunity. Capitalize, borrow, invest, earn, repay, repeat. Same dollars. Multiple deployments. The compounding never resets.The Structural Leverage Most People MissHere is a comparison most investors haven't worked through.Scenario A: $100,000 in a bank account. You die tomorrow. Your heirs receive $100,000.Scenario B: $100,000 in premiums paid into a properly structured whole life policy starting around age 50. You die tomorrow. Your heirs might receive $500,000. Five times the leverage, built directly into the contract.Now add the loan. You take a $100,000 policy loan and put it into an investment. The death benefit drops from $500,000 to $400,000 because the loan is collateralized against it. But the $100,000 is now working in a deal. Even if the investment breaks even (no gain, no loss), your family's net worth is $400,000 ahead of where the bank account would have left it.That is structural leverage. The advantage exists regardless of the investment's performance. Every dollar deployed through a policy loan carries a death benefit backstop that a bank balance simply doesn't have.An Important Caveat This leveraged net worth advantage is most meaningful in the earlier years of a policy, when the death benefit is far greater than the premiums paid in. That gap is the source of the immediate leverage.Over time, as premiums are paid, the gap between total premiums paid and the death benefit begins to shrink. It does not disappear, but the leverage ratio compresses as the policy matures.Even so, the structural advantage can be significant. You are building accessible cash value that will exceed your contributions over time, while also maintaining a death benefit that remains above what you have personally paid into the policy and protects the family legacy.Why Policy Loans Beat HELOCs and Credit Lines for InvestorsThe natural question: couldn't I do this with a HELOC, a personal line of credit, a margin account, or a 401(k) loan? It comes up almost every time the strategy is explained.The short answer: the underlying mechanics are different in ways that matter....
You've probably seen the pitch. Maybe you sat across from an advisor, or watched a video, or had a friend forward you something.The illustration was impressive: tax-free income in retirement, market upside without the downside, a number at the end that made your eyes widen a little. An Indexed Universal Life policy, they said, could be the retirement vehicle you've been missing.https://www.youtube.com/live/c9mJzNr029w?si=u2Tt1t2K2eyqKkRcParts of it sound great. Who wouldn't want growth linked to the S&P 500 with a floor that stops your cash value from going negative? Who wouldn't want retirement income that doesn't show up on a tax return?But what if the real risk isn't what the illustration shows? What if it's what the illustration doesn't show?That's the question this article is here to answer. Not to label IUL as good or bad. Not to tell you it's a scam. But to walk through what an IUL is actually designed to do, where its structural assumptions start to break down, and why so many people discover the problems far too late, often right as they're approaching retirement.By the end, you'll understand the specific retirement risks that rarely come up in the sales conversation, when IUL might genuinely make sense, and what a stronger alternative looks like as part of a broader retirement plan.Key TakeawaysWhat Is an IUL, and How Does It Actually Work?The Index Crediting StructurePoint-to-Point CreditingThe Flexible PremiumThe Retirement Risk No One Warns You AboutThe Cost That Keeps ClimbingWhy the Illustration Is Not the ContractWhen "Flexibility" Becomes a LiabilityWhat Happens When the Policy Can't Sustain ItselfThe Added Risk of Premium FinancingTo Be Fair: When IUL Might Be AppropriateThe Right Buyer for IULThe Non-Negotiable ConditionWhat Actually Works: Whole Life as Part of a Retirement PlanThe Volatility BufferTax-Neutral AccessThe Death Benefit as Permission to SpendHow to Use ItThe Questions Worth Asking Before You CommitWhat a Plan Built on Certainty Looks LikeBook a Strategy CallFAQsIs IUL good for retirement income?What is the biggest risk of using IUL in retirement?Can IUL replace a 401(k) or IRA for retirement?What is the difference between IUL and whole life for retirement planning?What happens if my IUL policy lapses in retirement?Key TakeawaysIUL is built on a one-year renewable term chassis, meaning mortality costs are contractually guaranteed to rise each year, peaking exactly when you need the policy to perform most reliably.The zero floor on crediting does not mean your cash value can't decline. Fees, mortality costs, and loan interest still come out regardless of how the index performs.The "flexibility" of IUL premiums is often a behavioral trap. Missed payments don't announce themselves. Policies deteriorate quietly.Using policy loans for retirement income adds a third layer of cost on top of already-rising mortality charges and fees, compounding the risk of lapse.If a policy lapses with outstanding loans and cash value above your cost basis, a taxable event is triggered. In retirement, that's one of the worst times to absorb an unexpected tax bill.IUL has a legitimate, narrow use case. For most people, whole life serves as the certainty layer within a diversified retirement system.What Is an IUL, and How Does It Actually Work?An Indexed Universal Life policy is a form of permanent life insurance with three components: a death benefit, a cash value account, and a premium. On the surface, that's similar to whole life. The distinction is in how the cash value grows, and what's guaranteed.The Index Crediting StructureWith an IUL, your cash value is credited based on the performance of a market index, most commonly the S&P 500. Two limits govern that crediting. A floor (usually 0%) means that if the index goes negative, your credited amount doesn't go below zero. A cap limits how much you receive in a strong year, typically anywhere from 6% to 15%, depending on the contract.The important thing to understand: you're not actually invested in the index. The insurance company contractually agrees to credit your cash value according to how the index performs, up to the cap, and no lower than the floor. You don't receive stock dividends. You don't get the full return. You get the index's price movement, constrained at both ends.Point-to-Point CreditingThe crediting is measured from your policy anniversary date to the next. The index could surge dramatically mid-year and then pull back before your anniversary, and you'd receive little or no credit for any of that movement.Some contracts offer two-year or three-year point-to-point options with higher caps or participation rates. But those extended windows also mean extended periods with no crediting at all.The Flexible PremiumIUL premiums are marketed as flexible. You can pay more or less within certain limits. That sounds like a generous feature. What it actually means for your retirement plan is something we'll come back to shortly. It's not as generous as it sounds.The Retirement Risk No One Warns You AboutHere's where the pitch and the reality start to diverge. Individually, most of what's in an IUL illustration is technically accurate. Together, the assumptions stack up in ways that don't show up in the numbers, and the consequences tend to land at the worst possible time.The Cost That Keeps ClimbingIUL is built on a one-year renewable term chassis. The cost of insurance increases every single year as you age. That's not a possibility. It's contractually guaranteed.In the early years, that cost is low and relatively painless. But as you approach retirement, the exact period you plan to draw income, those mortality charges accelerate sharply. They don't plateau. They keep climbing through your 70s and 80s. For anyone planning retirement with IUL as a central piece, this trajectory is a serious structural problem.Compare that to whole life. A properly structured whole life policy has level premiums and level costs, guaranteed for life. The insurance company bears that cost certainty. With an IUL, you do. And the policy has to absorb rising costs whether or not the index cooperates.Why the Illustration Is Not the ContractAn IUL illustration is a lengthy document, often around 60 pages. Whole life illustrations run closer to 20. That's not a coincidence. Financial educator Todd Langford on IUL has explored in depth why the math behind these illustrations so often breaks down in practice.The IUL document is full of disclosures: the company is not responsible for future performance, caps and participation rates can change, and projections are not guarantees. Understanding the full picture of IUL risks before committing is essential. The whole life illustration is shorter because the guaranteed column is real. The company stands behind those numbers by contract.IUL illustrations often show impressive projections: millions of dollars in 30 years, tax-free income throughout retirement. They also reassure you that a 0% crediting floor means you can't lose money. But both can't be true at the same time.Any year that credits 0% interrupts compounding. While the index credits nothing, mortality costs and administrative fees still come out of your cash value. A zero-credit year is a negative year for your actual cash value. You're just not losing it through index crediting.The phrase says "zero is your hero." But if you're also being shown $5 million at the end of 30 years, some of those years will credit zero. Factor in flat years, rising mortality costs, and fees. The projected number starts to look very different from what the contract actually guarantees.When "Flexibility" Becomes a LiabilityFlexible premium sounds like a feature. In retirement planning, where discipline and predictability matter most, it often functions as a liability.The pattern plays out like this: a policyholder funds consistently for years. A financial pressure point arrives, a family emergency, a period of lower income, or an unexpected expense. They miss a payment, intend to make it up, then miss another. The agent isn't servicing the policy, so there's no annual review to flag it. The automatic draft stops when they change bank accounts and never gets restarted.Months become years. The cash value has to cover mortality costs and fees on its own. It depletes faster. The policyholder is further from the illustrated outcome every quarter, and they don't know it.To be fair, disciplined policyholders who fund consistently and review annually don't fall into this trap. But the product's flexibility makes discipline optional, and optional discipline is a risk in any long-term financial plan.Whole life's level premium creates discipline precisely because it removes the choice. If you can't pay, the contract has a built-in mechanism: reduced paid-up, which converts the policy to a smaller paid-up policy rather than letting it lapse. Nothing equivalent exists in an IUL. That's also why IUL for Infinite Banking doesn't work. Banking requires certainty, and IUL can't provide it.What Happens When the Policy Can't Sustain ItselfThis is the scenario that doesn't make it into the sales presentation. And it's exactly the scenario that can materialize in retirement.Index crediting comes in lower than projected for a few years. Mortality costs keep climbing. Policy loans taken to fund retirement income carry their own interest charges. At some point, the policy can't sustain itself.The owner faces a stark choice: inject a lot more premium, potentially many times what was originally being paid, or let the policy lapse. For someone on fixed retirement income, coming up with a large unexpected premium often simply isn't possible.If the policy lapses with outstanding loans and cash value above your co
What Is Limited Pay Life Insurance?Most people assume that owning a whole life insurance policy means writing premium checks for the rest of their lives. It's one of those assumptions that gets repeated so often it starts to feel like a rule. But it isn't.https://www.youtube.com/live/8BE2ScEDZhQA limited pay life insurance policy lets you fully fund a permanent whole life policy within a compressed time frame, which is usually 10, 15, or 20 years. Once that payment window closes, you're done - no more premiums, ever. But your coverage stays in force for life, your death benefit remains intact, and your cash value continues to compound.For wealth creators who want to build a financial foundation that doesn't come with a lifelong bill, limited pay is worth a close look. And for those using whole life insurance as the backbone of a personal banking system, limited pay may be worth considering, depending on how much flexibility they want to preserve.. This article will show you why.What Is Limited Pay Life Insurance?Key TakeawaysThe Short Answer: What Is a Limited Pay Life Insurance Policy?How Does a Limited Pay Life Policy Work?Common Limited Pay StructuresWhat Happens After the Payment Period Ends?Limited Pay Life Insurance vs. Whole Life Insurance: What Is the Difference?Who Is Limited Pay Life Insurance Best Suited For?Limited Pay Whole Life Insurance and the Infinite Banking ConceptWhy Limited Pay May Appeal to Some Infinite Banking PractitionersThe Role of Paid-Up Additions (PUAs)Pros and Cons of Limited Pay Life InsuranceBook a Call to Find Out Your Next Step to Time and Money FreedomKey TakeawaysA limited pay life insurance policy is permanent whole life coverage where premiums are compressed into a shorter payment period, after which the policy is fully paid up with no further premiums owed.Annual premiums are higher than standard whole life, but premiums end sooner, and the policy becomes fully paid up on a defined timeline.Limited pay is not term insurance. This is a common point of confusion. Your coverage doesn't expire when payments stop; it continues for your entire life.Limited pay can work within an Infinite Banking strategy, but policy design matters more than the limited pay label itself, and if you think about it, banking will go on your entire life, so you really need to look closely at the consequences of if you are trying to control the banking function in your life. The right payment structure depends on your cash flow, your goals, and your timeline. There's no universal answer, only the answer that fits your situation.The Short Answer: What Is a Limited Pay Life Insurance Policy?A limited pay life insurance policy is a form of permanent whole life insurance in which you pay premiums for a set number of years (rather than for your entire life) after which the policy becomes fully paid up. Your death benefit and cash value growth continue for as long as you live, even though no further premium payments are required. Technically, all whole life policies are limited pay because you can always do a “Reduced Paid Up Option.”The distinction that trips many people up is between the payment period and the coverage period. With limited pay, those two things are deliberately different. You pay for a defined stretch (say, 20 years), and the policy covers you permanently.You might think of it like paying off a mortgage early. You could spread payments over 30 years, or you could pay the house off in 15. Either way, the house is yours. But in the second scenario, you own it free and clear much sooner, and every year after that, the money that used to go toward the mortgage is yours to deploy elsewhere.That's the core appeal of limited pay whole life. The premiums are higher during the payment window, but once that window closes, your policy is a fully funded, self-sustaining asset that continues to grow without any further input from you.How Does a Limited Pay Life Policy Work?The mechanics are straightforward once you see the logic behind them.During the payment period, you pay higher annual premiums than you would on a standard whole life policy. That compresses the required funding into a shorter window and leads the policy to become fully paid up sooner. The tradeoff is that you shorten the period during which premium can be contributed, which can limit long-term funding flexibility. Once the final premium is paid, the policy is considered paid-up. It's now self-sustaining. The death benefit stays in place, and the cash value continues to grow. What's more, if your policy is with a mutual insurance company (which most specially designed whole life policies are), you continue receiving annual dividends, which can be used to purchase Paid-Up Additions (PUAs), further increasing both your cash value and your death benefit.The policy doesn't change character when the payments stop. It's the same contract, the same guarantees, the same participating whole life policy. The only difference is that you are no longer funding it out of pocket.Common Limited Pay StructuresLimited pay policies come in several standard configurations, each with a different payment window:StructurePayment PeriodAnnual PremiumBest Fit10-Pay10 yearsHighestThose who want to be paid up quickly15-Pay15 yearsHighThose balancing speed and affordability20-Pay20 yearsModerate-to-highThose wanting a longer funding runwayPay to 65Varies by age at purchaseVariesThose aligning premiums with working yearsThe general rule is simple: the shorter the payment window, the higher the required annual premium and the sooner the policy reaches paid-up status. A 10-pay policy front-loads more capital into the policy early on, which means a larger base for compounding over the decades that follow. However, it limits the total amount of capital you can put into the system. Which structure makes sense depends on your current cash flow, your income horizon, and what you're trying to accomplish with the policy. In essence, there is no single right answer.What Happens After the Payment Period Ends?Nothing changes about your coverage. That's the part that often surprises people, but it shouldn't, because the whole point of limited pay is to reach this stage.Again, your policy continues to earn dividends, and your cash value continues to compound. Your death benefit stays in force (and may continue to grow as dividends are applied). You still have access to policy loans against your cash value, just as you did during the payment years.The only thing that stops is the premium bill. For people approaching retirement (or anyone whose income is structured around a finite earning window), that's a huge, notable feature. Your coverage persists even when your active income doesn't. Essentially, you have front-loaded the work, and the policy carries itself from here.In many ways, this differs from electing the reduced paid-up option, in which a policyholder stops paying premiums before the scheduled premium payments are complete and accepts a lower death benefit in exchange. With limited pay, the full death benefit is preserved because the policy was designed from the start to be funded within that window.Limited Pay Life Insurance vs. Whole Life Insurance: What Is the Difference?This is where the confusion usually resides, so it's worth being more precise.Limited pay life insurance is whole life insurance. It's not a separate product category, but a payment structure applied to a whole life policy. The underlying contract - guaranteed death benefit, guaranteed cash value growth, potential dividends, permanent coverage - is the same.The difference is how long you pay premiums.With standard whole life insurance, premiums are typically due annually for the insured's life (or until age 100/121, depending on the contract). With limited pay, those premiums are compressed into a shorter window. You're paying for the same lifetime of coverage, just on a faster schedule.Standard Whole LifeLimited Pay Whole LifePremium durationLifetime (or to age 100/121)Common Fixed periods (10, 15, 20 years, or to age 65)Annual premiumLowerHigherTotal premium commitment Spread over a longer periodCompleted over a shorter periodCash value funding patternMore spread out over timeMore compressed into a shorter periodPolicy after premiums endN/A — premiums continueFully paid-up, self-sustainingThe natural follow-up question worth pondering: Is a limited pay life insurance policy more expensive? Year to year, yes, the annual premium is higher. But because you stop paying sooner, the total amount you pay over your lifetime may actually be less than what you would pay on a standard whole life policy. While the shorter payment window is attractive upfront, we've often found that later on, clients wish they still had the option to keep funding the policy and growing a larger pool of capital.Who Is Limited Pay Life Insurance Best Suited For?To be frank, limited pay is not for everyone. While it offers the appeal of becoming fully paid up within a defined period, that does not automatically make it the best structure for every wealth builder.Limited pay may be a fit for people who place a high value on knowing the policy will be fully paid up by a specific date and who are comfortable committing to the higher required premiums that come with that design.That can be attractive for:Entrepreneurs and business owners with strong income today. If you want to complete your premium obligation during your peak earning years, limited pay can provide a clear path to doing that.Professionals preparing for retirement. If your priority is to have permanent coverage in force without scheduled premiums later in life, limited pay may align well with that goal.People who highly value the certainty of a paid-up contract. For some,...
Few financial products generate as much excitement (or possibly as much confusion) as indexed universal life insurance. IUL insurance has become one of the most aggressively marketed policy types in the industry, pitched with language that sounds almost too good to overlook, including terms such as market-linked upside, downside protection, tax-advantaged growth, and flexible premiums.https://www.youtube.com/live/fZS1uPmsCS0Some of that is real, but we feel strongly that context and nuance should be applied when procuring any IUL policy, as it can obscure risks that don't become apparent until years after you have signed.This article is an honest guide to what an IUL policy actually is, how it works under the surface, what it promises versus what it delivers, and why, for those building a financial strategy around Infinite Banking, we consistently and strenuously recommend a different path.Key TakeawaysWhat Does Indexed Universal Life Insurance Mean?How Does an IUL Policy Work?The Floor, Cap, and Participation Rate ExplainedThe FloorThe CapThe Participation RateFlexible Premiums – Feature or Risk?IUL vs. Whole Life Insurance: Key DifferencesCan You Use an IUL for Infinite Banking?Why The Money Advantage® Recommends Whole Life for IBCWho Is IUL Best Suited For?IUL Pros and Cons: An Honest AssessmentWant Help Evaluating Your Policy Options?Key TakeawaysAn indexed universal life insurance policy is a form of permanent life insurance that ties cash value growth to the performance of a stock market index, subject to caps, floors, and participation rates.IUL offers flexible premiums and the potential for market-linked returns without direct market exposure. That flexibility, however, comes with complexity and risk that most sales presentations understate.The 0% floor protects against index-driven losses, but it does not protect against policy fees and rising cost of insurance charges, which can erode cash value even in flat or positive market years.For those practicing Infinite Banking, IUL introduces variables that conflict with the certainty and control the strategy requires. Whole life insurance remains the preferred vehicle.IUL is not inherently a scam or a bad product. It is, however, a complex one, and complexity without understanding is where financial damage happens.What Does Indexed Universal Life Insurance Mean?An indexed universal life insurance policy is a type of permanent life insurance with two distinguishing features: flexible premiums and a cash value component that earns interest based on the performance of a stock market index, most commonly the S&P 500.You don't own shares or invest directly in the market. Instead, the insurance company credits interest to your cash value based on how the chosen index performs over a given period, within defined parameters, including a floor (usually 0%), a cap (often 10-12%), and a participation rate (the percentage of index gains you actually receive).The core appeal of an indexed universal life insurance policy is quite understandable, as you get some exposure to market growth without the risk of direct market loss. Your cash value won't decline because of a bad year in the S&P 500, and that's exactly what the floor is for. But with that comes a caveat: your gains are limited in strong years by the cap and the participation rate.Now, on the face of it, that may sound like a reasonable tradeoff. And for some people, in some situations, it certainly can be. But the full picture is far more complicated than the pitch suggests, and, once again, the complications tend to show up years down the road.How Does an IUL Policy Work?The mechanics of an IUL policy involve more moving parts than wholelife insurance, and understanding those parts is essential before committing to one.When you pay a premium, that money is allocated across three buckets: the cost of insurance (COI) – the actual price of maintaining your death benefit – policy fees and administrative charges, and whatever remains flows into your cash value account. The cash value is then credited with interest according to the index strategy you've selected.This is where the structure differs most from whole life insurance. With a whole life contract, your cash value growth is guaranteed by the contract, and dividends from a mutual company add to that growth. With IUL insurance, your credited interest depends on external index performance, constrained by the carrier's rules, which the carrier can change.That glaring distinction is far more telling than it might seem at first glance.The Floor, Cap, and Participation Rate ExplainedThese three mechanics define the boundaries of your IUL's cash value growth, and they deserve a close look.The FloorThe floor is the minimum interest credited to your cash value in any given period, usually 0%. If the S&P 500 drops 15% in a year, you are credited 0% rather than absorbing that loss. That sounds protective - and it is, in a narrow sense. But a 0% credit year doesn't mean your cash value holds steady. Policy fees and cost of insurance charges are still deducted regardless, which means your cash value can shrink even when the floor is doing its job.The CapThe cap is the maximum interest credited, regardless of how well the index performs. If your policy has a 10% cap and the S&P 500 returns 25% in a given year, you receive 10%. The other 15% stays with the insurance company. In a strong bull market, the cap quietly siphons off the upside that made the product appealing in the first place.The Participation RateFinally, we have the participation rate, which determines what percentage of the index gain (up to the cap) you actually receive. An 80% participation rate on a 10% index return means you are credited 8%.However, caps and participation rates are not permanently fixed. Insurance carriers can adjust them. The concern here is that what may be illustrated at the point of sale may not be what you experience five, ten, or twenty years into the policy.Flexible Premiums – Feature or Risk?One of the most marketed features of indexed universal life insurance is premium flexibility. Unlike traditional whole life, where the base premium is fixed and contractually guaranteed, IUL allows you to vary premiums within certain limits. You can pay more in strong years and less in lean ones. While whole life with paid-up additions riders can also offer flexibility for adding extra premium, those additional contributions are optional. Traditional whole life does not depend on extra rider premiums to keep the policy in force.That sounds like freedom. In reality, it could be viewed as a trap, of sorts.The issue is that underfunding an IUL policy (paying less than the amount needed to cover insurance charges and fees) doesn't trigger an immediate consequence. The policy stays in force, but the shortfall compounds over time. Alarmingly, because the cost of insurance in a universal life chassis increases as you age, the gap between what you're paying and what the policy requires can widen dramatically in your 60s, 70s, and beyond.This is one of the most commonly realized negatives of IUL insurance. Policyholders who reduced premiums during their working years discover decades later that their policy is on the verge of lapsing, and the cost to keep it alive has absolutely skyrocketed.By the same token, flexible premiums can work for disciplined, well-informed owners who understand the risks. But the flexibility itself is not the safety net it is frequently marketed as - it's an anxiety-inducing variable that requires active management for the life of the policy.IUL vs. Whole Life Insurance: Key DifferencesA huge number of people researching IUL are comparing it to whole life. But while the two products are both permanent life insurance, their internal architecture is fundamentally different.IULWhole LifeCash value growthTied to index performance, subject to caps, floors, and participation rates. Not guaranteed.Contractually guaranteed growth, plus highly anticipated dividends from a mutual company.PremiumsFlexible - can vary year to year.Fixed and level - guaranteed never to increase.Cost of insuranceIncreases annually with age. Deducted from cash value.Built into the level premium structure. No separate increasing charge.Death benefitCan fluctuate depending on funding and policy performance.Guaranteed for life.ComplexityHigh - multiple moving parts, carrier-adjustable terms.Low - contractually defined.Policy loan behaviorLoan interest plus uneven crediting can create negative arbitrage.Predictable. Cash value continues to earn while loans are outstanding.Either way, neither product is universally or objectively better. They serve different purposes, and the differences in guarantees, predictability, and internal cost structures are significant, especially for anyone planning to use their policy as a long-term financial tool.Can You Use an IUL for Infinite Banking?Some advisors market indexed universal life for “banking” strategies, making the case that IUL's potential for higher returns makes it a superior vehicle for building a personal banking system. That is not the same thing as the Infinite Banking Concept as taught by Nelson Nash. As Authorized Infinite Banking Practitioners, we believe Infinite Banking is properly implemented with dividend-paying whole life insurance because the concept is about becoming your own banker by taking the banking function into your own life.And our position is not arbitrary.The Infinite Banking Concept is built on predictability, certainty, and control. You need confidence in how your cash value system will function over time. You need guaranteed access to policy loans. You need a death benefit that doesn't fluctuate....
What an Old Game Revealed About Real Money DecisionsOne of the most interesting moments in our conversation with Lucy Taylor had nothing to do with spreadsheets, calculators, or even investing.It was a game.https://www.youtube.com/live/hpyIChXQy5UBruce brought up Oregon Trail—an old-school game where every decision mattered. How many supplies would you take? How much risk would you accept? Would you move too fast and lose everything, or play so cautiously that you never made meaningful progress?That simple example opened the door to a much bigger truth: money works the same way.Whether someone realizes it or not, personal finance is full of decisions, tradeoffs, consequences, and delayed outcomes. The difference is that in real life, there is no reset button. There is no easy restart after a poor decision. And that is exactly why financial literacy for Gen Z matters so much right now.Young adults are entering a world with rising costs, easy access to debt, nonstop financial noise on social media, and more pressure than ever to make smart money decisions early. Yet many are still being taught money the same old way: through lectures, formulas, compliance-based education, and disconnected advice that rarely sticks.That is a problem.And it is why this conversation stood out. It offered a fresh, practical, and deeply needed perspective on how to make financial education more real, more useful, and more transformative.What an Old Game Revealed About Real Money DecisionsWhat Financial Literacy for Gen Z Really RequiresWhy Financial Literacy for Gen Z Cannot Be an AfterthoughtThe Problem With Traditional Personal Finance Education for TeensFinancial Literacy Games May Succeed Where Lectures FailHow to Teach Teens Financial Literacy Through EntrepreneurshipWhy a Financial Literacy App for Teens Needs Real-World ApplicationWhy Gen Z Needs Financial Literacy Before They Face Major Money DecisionsFinancial Literacy for Gen Z Is About More Than MoneyThe Real Goal of Financial Literacy for Gen ZListen to the Full Episode on Financial Literacy for Gen ZBook A Strategy CallFAQWhat is the best way to teach teens financial literacy?How do financial literacy games help teens learn money?How can entrepreneurship teach kids about money?Why do college students need financial education?What Financial Literacy for Gen Z Really RequiresWhen Bruce and I sat down with Lucy Taylor, we quickly realized we were not just discussing another financial app or another theory about teaching money. We were exploring a new model for financial literacy for Gen Z—one rooted in application, behavior, entrepreneurship, and real-world decision-making.Lucy is the founder of Aurum, a platform designed to teach personal finance through gaming, systems thinking, and mastery-based learning. What caught our attention was not only her creativity, but also her clarity. She understands something many people miss: knowing financial facts is not the same as knowing how to live financially well.In this blog, we want to unpack the biggest ideas from that conversation and show why they matter to you, your children, and the next generation. You will learn why traditional financial education often falls short, why financial literacy games and gamified learning may be more effective, how entrepreneurship trains better money habits, and why this matters so much for young adults facing real financial pressure.If you have ever wondered about the best way to teach teens financial literacy, or how to help young people develop wisdom and confidence around money, this conversation offers an important framework.Why Financial Literacy for Gen Z Cannot Be an AfterthoughtGen Z is stepping into adulthood in a very different financial environment than prior generations. The cost of living is high. Credit is easy to access. Student loans can become overwhelming. Social media is flooded with flashy advice, hot takes, and financial personalities pushing strong opinions that may not be grounded in sound thinking.That makes financial literacy for Gen Z more than a nice idea. It is a necessity.One of the concerns Lucy raised in our discussion is that many young adults are encountering real financial decisions for the first time when the stakes are already high. They go off to college, open their first credit card, start managing expenses independently, and suddenly face an adult financial world without much preparation. A few meals out, a few rideshares, a few casual purchases, and debt begins to build. Quietly. Repeatedly. Often without a clear understanding of what is happening underneath the surface.This is why Gen Z personal finance education must go beyond abstract concepts. Young people do not simply need information. They need formation. They need the ability to think through the consequences of decisions before they feel trapped by them.And that kind of learning does not happen well through passive exposure alone.The Problem With Traditional Personal Finance Education for TeensMuch of what passes for money education today is built around compliance. Sit through the lesson. Memorize the terms. Pass the quiz. Move on.But that model does not create real mastery.Bruce made this point clearly in the episode by talking about continuing education requirements in the financial world. Too often, the goal is not true understanding. It is simply completion. You click through material, take a test, and move on, whether or not anything meaningful was learned or applied.The same issue shows up in schools. Too much personal finance education for teens is delivered as information transfer rather than transformation. Students may hear about compound interest, budgeting, debt, or saving, but without a meaningful framework for application, that knowledge often stays stuck at the surface.That is not enough.If we want financial literacy for teens and young adults to actually shape behavior, we have to teach in a way that makes money feel connected to life. It has to matter. It has to feel immediate. It has to build skill, judgment, and confidence—not just familiarity with terms.That is where Lucy’s emphasis on mastery learning is so helpful. Instead of just asking, “Did the student hear this?” the better question is, “Can they use it? Can they apply it? Can they make decisions with it?”That is a very different standard.Financial Literacy Games May Succeed Where Lectures FailOne of the most compelling parts of the conversation was Lucy’s explanation of why financial literacy games may work better than traditional methods.Her insight was simple and powerful: money is already a game in the sense that it has rules, strategies, tradeoffs, and outcomes. The problem is that many people are thrown into the game of money without ever being taught how to play it well.Games create a lower-risk environment for learning. They allow someone to practice decisions, see outcomes, and develop intuition. That matters because behavior is shaped through repeated action, not just through explanation.This is why gamified financial literacy is such an intriguing model. It taps into how people actually learn. Instead of lecturing students about delayed gratification, systems thinking, and resource allocation, it allows them to experience those ideas in motion.That matters especially for younger learners.If a child or teen can begin to understand earning, saving, risk, tradeoffs, and long-term thinking through interactive experience, those lessons have a much better chance of sticking. A game can make invisible financial principles visible. It can show cause and effect. It can help someone feel the difference between impulsive decisions and disciplined ones.That is one reason game-based learning may be the best way to teach teens financial literacy. It is not because games are trendy. It is because good games are structured around action, feedback, and consequence.How to Teach Teens Financial Literacy Through EntrepreneurshipAnother major takeaway from the episode was the role of entrepreneurship.Lucy shared that her own money journey began early, selling eggs from her family’s land and later building small businesses. That mattered because entrepreneurship teaches financial principles in a very real and practical way. It helps someone connect effort, value creation, revenue, expenses, profit, and decision-making.In other words, entrepreneurship turns money from something abstract into something lived.That is why teaching kids financial literacy through entrepreneurship is such a powerful idea. Even simple ventures can teach real principles. A lemonade stand, a lawn care service, selling handmade items, tutoring, or reselling books can all become training grounds for financial wisdom.Entrepreneurship teaches:Financial literacy for teens starts with earningWhen young people earn money themselves, they begin to understand effort, tradeoffs, and ownership in a new way.Financial literacy through games can reinforce delayed gratificationInstead of spending immediately, they can learn to wait, reinvest, and build.Game-based financial education for kids and teens builds systems thinkingThey start seeing how small decisions connect to larger outcomes over time.Financial literacy and entrepreneurship for teens create confidenceYoung people begin to see that money is not just something that happens to them. It is something they can learn to manage wisely.This mindset shift is significant. Even if a young adult works a traditional job, entrepreneurial thinking still matters. As Lucy said, someone can be a W-2 employee and still manage money like a business owner. That means thinking intentionally, allocating resources wisely, and making decisions based on long-term outcomes rather than short-term emotion....
If You’re Chasing Early Cash Value, Read This FirstBruce and I were recording across three time zones, and that detail matters more than you might think because it mirrors what most families are trying to do with their money - coordinate a life that spans seasons, responsibilities, and decades, while the financial world keeps shouting “faster” like everything that matters can be microwaved.https://www.youtube.com/live/eDo8JKDV1zIThat’s why this episode landed with such urgency.Bruce had just attended the Nelson Nash Institute Think Tank and listened to John (our guest) unpack something we’ve been watching for years: people discovering the Infinite Banking Concept and immediately asking the wrong first question, which is usually some version of, “How fast can I get cash value?”I understand why that question shows up, especially if you’re a high-capacity person who moves quickly, solves problems, and expects systems to perform, but I also need to tell you the truth as clearly as I can.If You’re Chasing Early Cash Value, Read This FirstShort-term thinking plus Infinite Banking are incongruent. They cannot work together.What Proper Policy Design Protects You FromInfinite Banking Policy Design for Long-Term Results starts with long-range thinkingInfinite Banking Strategy: Control Over Rate of ReturnHow to design a whole life policy for Infinite Banking without chasing early cash valuePaid-up additions (PUA) rider explained in a long-range frameworkTerm riders in Infinite Banking: what you must know about long-range riskAvoid MEC risk in Infinite Banking policy designWhy premium duration matters more than early cash valueThe Big Takeaway: Premium Duration Beats Early Cash ValueListen to the Full Episode: Build This the Right WayBook A Strategy CallShort-term thinking plus Infinite Banking are incongruent. They cannot work together.If you overlay a quick-fix mindset onto a long-range asset like properly designed whole life insurance for Infinite Banking, you may feel like you’re winning in year one while silently planting problems that show up in year seven, year twelve, or year twenty, right when you need your system to be the most dependable.This is not about fear. This is about building a process that can carry your family for generations.What Proper Policy Design Protects You FromIn this blog, Bruce and I are going to translate the core ideas from our conversation into a clear, practical guide you can actually use, because Infinite Banking policy design is one of those topics where the internet can confuse you fast, and confusion always creates hesitation, and hesitation is how families drift.By the end of this, you’ll understand:Why the Infinite Banking strategy is built on control over rate of return, and why that ordering matters if you want to minimize regret later.The real tradeoffs behind “max funded” whole life policies, especially when the focus becomes maximizing cash value whole life insurance in the early years at the expense of long-range flexibility.How a paid-up additions (PUA) rider explained clearly can help you understand what’s actually happening inside the policy, and why the PUA conversation is often oversimplified online.What a term rider on whole life insurance can do to policy performance and long-term options, including what happens when term riders drop off.How modified endowment contract (MEC) risk can appear through design choices and policy behavior, and how to avoid a MEC in Infinite Banking policy design.Why premium duration matters more than early cash value, especially if you want a policy you can keep funding as your income and capacity expand.This is not theory, and it’s not marketing fluff.This is how you build a family banking system that stays strong when life gets real.Infinite Banking Policy Design for Long-Term Results starts with long-range thinkingIf you’re new to Infinite Banking, I want you to take a deep breath and hear this with the right lens: the purpose of this conversation is not to make you distrust the concept, but to help you avoid the traps that happen when people treat Infinite Banking like a short-term investment instead of a long-term capitalization strategy.Bruce opened the episode with a blunt observation that I agree with: some people are turning Infinite Banking into a sales script, and the problem is that it can sell well upfront and even “work” for a few years, but then the long-range consequences appear at the exact moment you’re counting on the policy to deliver more flexibility, not less.In the episode, Bruce described scenarios we’ve witnessed in real client reviews, where policies are designed for short-term optics and later run into constraints that can’t be ignored. Sometimes the policy becomes “stuck” because the design doesn’t allow meaningful ongoing funding. Other times, the policy can run into serious tax consequences because the underlying structure and behavior collide with IRS rules, especially if someone is heavily borrowing and a rider structure changes or falls off.If that sounds technical, here’s the simple heart of it:When you design your policy for quick early wins, you often sacrifice long-term control.And Infinite Banking, at its core, is about control.Control over capital. Control over access. Control over timing.Control over your family’s trajectory.Infinite Banking Strategy: Control Over Rate of ReturnJohn’s background gave this conversation a powerful angle because he spent decades in Silicon Valley tech and data center real estate finance, and he watched how institutional investors - the people with real money and real accountability - make decisions.His key point was simple and disruptive to the consumer mindset: institutional investors prioritize control and risk first, and they treat rate of return as a close third.That matters because most families have been trained to believe that a higher return is the primary “win,” so they chase exposure, speculation, and upside, and then they wonder why the ride feels unstable, why sleep disappears, and why the plan keeps changing every time the market or headlines change.If you want a different outcome, you need a different order of operations.Control first. Risk management second. Return as a result of good process.That is why whole life insurance designed for Infinite Banking is not meant to be your “highest return” asset. It’s meant to be a cash-equivalent foundation that stays liquid, predictable, and usable, so you can deploy capital into other assets and opportunities without losing the base.This is the part most people miss: you don’t build wealth by finding one perfect asset that does everything. You build wealth by designing a system where each asset has a job, and the jobs complement each other.A properly designed whole life policy is a place to store capital, grow it steadily, and keep access to it through policy loans.The “return” happens when you use that access to create velocity in your personal economy, not when you obsess over the internal rate of return inside the policy itself.How to design a whole life policy for Infinite Banking without chasing early cash valueHere’s the tension John described that shows up constantly in the online conversation: people assume that high early cash value automatically means high long-term value, because that’s how a normal account works, where more money earlier compounds longer.But whole life is not a normal account.John said something that is worth repeating: whole life insurance is a math equation, an actuarial calculation with tradeoffs, and there are no deals in the insurance business. When you optimize one area aggressively, you create a cost somewhere else, because cost and risk are always being balanced.So when someone tells you a “10/90,” “max funded,” or “overfunded” design is automatically “best,” what you should hear is: “This design is optimized for early cash value.”That might be useful in some cases, but it is not automatically best, and in many cases it can be limiting.John highlighted three common ways people chase high early cash value:Short-pay designs (like a 5-7 pay) where premiums stop after a short period.Short-duration PUA riders that allow heavy paid-up additions early but then drop to a much smaller base premium later.Long-duration term riders that allow larger early funding but introduce drag and risk later as the term coverage becomes costly or changes.All three approaches can create an early “pop” in cash value, but they can also create a long-range problem: you may not be able to keep funding the policy meaningfully right when the policy becomes most efficient at converting premium into cash value.This is where Bruce and I want you to slow down and catch the principle:Whole life policies get better every year.Somewhere around year 4-6, the policy often reaches the point where each premium dollar can create more than a dollar of new cash value, and that’s when the system starts to feel like an asset that’s firing on all cylinders.If your design stops you from funding heavily at that stage, you’ve built a system that peaks early and then plateaus, which is the opposite of what a family banking system should do.Paid-up additions (PUA) rider explained in a long-range frameworkPUA is not “bad,” and base premium is not “bad.”The problem is not the existence of PUA.The problem is when PUA becomes the goal instead of the tool.John made a point that surprises people: in many policies, base premium can perform just as well or sometimes slightly better in later years than PUA-heavy funding, because the policy’s long-run mechanics are built around the actuarial structure, not the internet buzzwords.PUA is especially helpful in the early years because it i
“I’m Not Paying for Oil—I’m Protecting the Engine”There’s a moment in our house where Lucas will look at me—calm as can be—and say, “Rachel… I’m not paying for oil. I’m protecting the engine.”And every time he says it, it reminds me of how people think about taxes.https://www.youtube.com/live/1bgZWYxu3joBecause an oil change feels annoying. It’s inconvenient. It’s not “fun money.” It’s something you can easily delay—especially when life is full.But what Lucas understands is what most families don’t realize until it’s painful: small, responsible decisions today protect what you’ve built tomorrow.That’s exactly what a Roth conversion strategy is. Not a trendy tactic. Not clickbait. Not “always do this” or “never do this.”It’s stewardship.And it’s one of the most misunderstood decisions families make—because it’s not just about your tax bracket this year. It’s about your lifetime taxes… and in many cases, your kids’ taxes too.“I’m Not Paying for Oil—I’m Protecting the Engine”A Long-Range Roth Conversion StrategyRoth Conversion Strategy: Start With the Right Lens (Not a Hot Take)What Is a Roth Conversion?Why Roth Conversions Are Everywhere Right NowRoth Conversion and Future Tax Rates: The Real Issue Is ControlShould I Do a Roth Conversion? When It Makes Sense1) You’re trying to reduce lifetime taxes (not just this year’s taxes)2) You have high tax-deferred balances and don’t expect to spend them down3) You have a window of lower-income years4) Your goal is tax diversification and retirement flexibilityRoth Conversion Mistakes to AvoidMistake #1: Ignoring IRMAA (Medicare Premium Surcharges)Mistake #2: Treating Roth conversions as staticMistake #3: Trying to time the market perfectlyHow Does a Roth Conversion Affect Your Heirs?Roth Conversion Estate Planning Strategy: When Roth Isn’t the End GameReframe the Goal: Not “Highest Return,” but “Best Outcome After Taxes”What This Roth Conversion Strategy Changes for Your FamilyListen to the Full Roth Conversion Strategy EpisodeBook A Strategy CallFAQWhat is a Roth conversion strategy?When does a Roth conversion make sense?What are the downsides of a Roth conversion?Is it better to do Roth conversions when the market is down?How do I avoid Roth conversion mistakes?A Long-Range Roth Conversion StrategyIn this blog (and podcast), Bruce Wehner and I unpack Roth conversions the way we believe every financial decision should be unpacked: with a long-range view, a clear understanding of tradeoffs, and a focus on control.If you’re asking questions like:Should I do a Roth conversion?When does a Roth conversion make sense?What are the downsides of a Roth conversion?How does a Roth conversion affect my Medicare premiums (IRMAA)?How does the SECURE Act change inherited IRA taxes for my heirs?…this article is for you.You’ll learn what a Roth conversion is, why people are talking about it more right now, and the biggest blind spots that can cost families real money—especially under the SECURE Act’s inheritance rules.We’ll also show you why this isn’t a one-variable decision. The best Roth conversion planning is dynamic and integrated—because taxes, Medicare premiums, market timing, and estate planning all collide here.Roth Conversion Strategy: Start With the Right Lens (Not a Hot Take)Bruce opened our conversation with something that matters:There is no such thing as universal Roth conversion advice.If someone on social media tells you, “Always do a Roth conversion,” they’re selling certainty—not stewardship. And if someone tells you, “Never do a Roth conversion,” they’re doing the same thing in reverse.A real Roth conversion strategy requires your full financial picture.And not just your picture.It often requires understanding your heirs’ tax picture, too. Because what happens after you’re gone is part of the strategy—not an afterthought.If your goal is to pay the least amount of taxes over your lifetime and your family’s lifetime, then this is a conversation worth slowing down for.What Is a Roth Conversion?A Roth conversion is when you move money from a tax-deferred account (like a Traditional IRA) into a Roth IRA.Here’s the simple trade:With a Traditional IRA, you get a tax break today, but you pay taxes later when you withdraw.With a Roth IRA, you pay taxes now, and then your money can grow tax-free, and you can access qualified withdrawals tax-free.So the core question isn’t “Do I like Roths?”The core question is:Do I want to pay the tax now or later—and what does that choice do to my lifetime tax bill and my heirs’ tax burden?This is why we call it Roth conversion planning—because the conversion itself is just a move. The strategy is the plan around it.Why Roth Conversions Are Everywhere Right NowIf you’ve noticed the sudden spike in Roth conversion content, you’re not imagining it.Yes, people are thinking about inflation and national debt. But the bigger driver is a policy change that quietly shifted the math for families:The SECURE Act and the 10-Year RuleThe SECURE Act changed how inherited IRAs work for most non-spouse beneficiaries.Before the SECURE Act, many beneficiaries could “stretch” distributions over their lifetime. That often meant smaller annual distributions and a more manageable tax impact.Now, in many cases, heirs must empty an inherited IRA within 10 years.That means more money forced out over a shorter time window, often during your child’s peak earning years—when they’re already in higher tax brackets.This is why the question “How does a Roth conversion affect your heirs?” is not a niche question. It’s central.Roth Conversion and Future Tax Rates: The Real Issue Is ControlOne of Bruce’s strongest points was this:You can try to predict future tax rates… but the bigger issue is control.Tax policy changes. Brackets change. Deductions change. Rules change. And governments are always solving for revenue.So instead of pretending we can forecast everything perfectly, we ask:How do we increase your control over when and how taxes are paid?That’s what a tax diversification retirement strategy is about: having money in different “tax buckets” so you can choose how you pull income in retirement.Because a family with options has leverage.A family with only tax-deferred money has constraints.Should I Do a Roth Conversion? When It Makes SenseLet’s bring it down to practical guidance.A Roth conversion can make sense when:1) You’re trying to reduce lifetime taxes (not just this year’s taxes)If you’re doing a Roth conversion to reduce lifetime taxes, you’re looking at:your expected retirement incomeyour required minimum distributions (RMDs)your spouse’s situationyour heirs’ likely income levelsfuture tax law uncertaintyThis is not a “this year only” decision. It’s long-range strategy.2) You have high tax-deferred balances and don’t expect to spend them downBruce sees this often with high net worth families.They have significant IRA/401(k) balances, but they live on cash flow from businesses, real estate, or other income sources. So the tax-deferred accounts are likely to be inherited—not consumed.That’s when the SECURE Act 10-year rule becomes a real problem for adult children.3) You have a window of lower income yearsMany families have lower income years:early retirement before Social Securitya gap between selling a business and reinvesting proceedsyears with unusually high deductionsThese windows can be ideal for Roth conversion planning, because you can “fill up” lower tax brackets strategically.4) Your goal is tax diversification and retirement flexibilityA Roth IRA can be a powerful tool for controlling adjusted gross income in retirement—especially when it comes to Medicare premiums and other phaseouts.But that leads to a major pitfall…Roth Conversion Mistakes to AvoidMistake #1: Ignoring IRMAA (Medicare Premium Surcharges)If you’re near Medicare age, this is huge.A Roth conversion increases your adjusted gross income (AGI). Higher AGI can trigger IRMAA—Income Related Monthly Adjustment Amount.In plain language:the more income you show, the more you can pay for Medicare Part B and Part D premiums.Bruce shared how common it is for people (and even many advisors) to miss this entirely.And here’s the kicker:IRMAA is based on a two-year lookbackso a conversion today can impact Medicare premiums two years from nowThis doesn’t mean “don’t convert.”It means: run the math.Because sometimes the tax savings over your lifetime is still worth it. But you should know what you’re trading.Mistake #2: Treating Roth conversions as staticBruce said it well: this can’t be a static strategy. It must be dynamic.He gave an example of a client who retired, started a multi-year Roth conversion plan, and then unexpectedly received a consulting contract paying several hundred thousand dollars.That income changed everything.Their conversion strategy had to be adjusted immediately—because the tax brackets, Medicare implications, and intended “conversion window” shifted.The point is simple:A Roth conversion strategy needs ongoing review.Mistake #3: Trying to time the market perfectlyYes, it can be advantageous to convert when markets are down.But most families wait for the perfect moment… and miss years of opportunity.Bruce’s guidance is the steady kind of wisdom we live by:Control what you can control. Don’t pretend you have a crystal ball.A good strategy often beats “perfect timing.”And in some cases, converting a depressed holding into a Roth can be a smart move—because future growth happens inside the Roth structure.How Does a Roth Conversion Affect Your Heirs?...
What Is Reduced Paid-Up (RPU) Insurance?Somewhere buried in your whole life insurance policy, there's a provision called the reduced paid-up option. Most people never think about it until they need to. And by then, they're usually Googling it in a mild panic. So let's get ahead of that. Reduced paid-up insurance is a nonforfeiture option written into every whole life policy. It gives you the right to stop paying premiums and keep a smaller, permanent death benefit, fully paid up, no strings attached, no further payments required. Your cash value funds the whole thing.https://www.youtube.com/live/ypC6twnNlsAWhat Is Reduced Paid-Up (RPU) Insurance?Key TakeawaysThe Short Answer: What Does "Reduced Paid-Up" Mean?How Does the Reduced Paid-Up Option Work?A Simple ExampleWhat Happens to the Cash Value?Reduced Paid-Up vs. Other Nonforfeiture OptionsWhen Might Someone Use the Reduced Paid-Up Option?Financial HardshipRetirementInherited policiesIntentional simplificationReduced Paid-Up Insurance and the Infinite Banking ConceptWhy IBC Policyholders Rarely Elect RPURPU as a Safety Net Within Your Banking SystemWhy Proper Policy Design MattersBook a Call to Find Out Your Next Step to Time and Money FreedomWhy Should You Understand RPU Insurance?It's one of the most important safety nets your policy offers. But if you're building a financial strategy around your whole life policy (especially if you're using it as part of an Infinite Banking system), RPU insurance is something you should understand thoroughly, even if you never plan to use it.This guide covers what the reduced paid-up option is, how it works, how it compares to your other nonforfeiture options, and why it occupies a very specific place in the broader picture of wealth building with whole life insurance.Key TakeawaysReduced paid-up insurance lets you stop paying premiums on a whole life policy while retaining a smaller, permanent death benefit. No further payments are owed, ever.Your cash value isn't lost. It's applied as a single premium to purchase the new, reduced policy, which may continue earning dividends.RPU is one of three standard nonforfeiture options. The other two, cash surrender and extended term, serve different purposes depending on your goals.For policyholders practicing Infinite Banking, electing RPU means stepping off the accelerator. The policy still exists, but the compounding engine that makes IBC powerful slows significantly.Knowing your options is a form of control. You don't have to use RPU to benefit from it being there.The Short Answer: What Does "Reduced Paid-Up" Mean?Reduced paid-up life insurance is a contractual right baked into your whole life policy. If you reach a point where you can't (or don't want to) continue paying premiums, you can elect RPU instead of surrendering the policy entirely.When you do, your insurance company uses the cash value you've accumulated as a one-time net premium to purchase a new whole life policy. Same type of coverage. Same insured person. But with a lower death benefit that reflects the smaller amount of money funding it.No cash comes to you, and no cash leaves your pocket: the whole transaction happens inside the whole life insurance policy.An analogy that might help: imagine you have been renting a large warehouse for your business, paying monthly rent to use the full space. Your needs change, and you can't justify the rent anymore. Instead of walking away and losing the space entirely, you are offered a smaller unit in the same building, fully owned, rent-free, and yours permanently. While you might have less room, you still have a foothold. That's RPU.The critical thing to understand is that "reduced" refers to the death benefit, not the quality of coverage. You still hold a permanent, participating whole life policy. It just covers a smaller amount.How Does the Reduced Paid-Up Option Work?The mechanics are less complicated than the policy document makes them look.Your policy has been accumulating cash value with every premium payment you've made. When you elect RPU, that accumulated cash value gets applied as a single lump-sum premium. The insurance company then calculates how much fully paid-up whole life coverage that lump sum can buy at your current age and health classification.The result: a new permanent policy with a reduced face amount. No premiums due going forward. The policy stays in force for your entire life.Depending on your carrier (particularly if you are with a mutual company), the paid-up policy may still be eligible for annual dividends. That means your cash value can continue to grow, and in some cases, the death benefit can edge upward over time. The growth won't be dramatic. Without fresh premium dollars feeding the policy, the compounding effect slows down considerably. But it doesn't stop entirely.A Simple ExampleSay a policyholder has been paying into a whole life policy for twelve years. The original death benefit is $500,000, and the policy has accumulated $80,000 in cash value. Premiums are $8,000 annually.Circumstances shift, maybe a business transition, maybe a pivot in priorities, and continuing those premium payments no longer makes sense. Rather than surrendering the policy and walking away with the $80,000 (minus any fees or outstanding loans), the policyholder elects RPU.The $80,000 cash value purchases a fully paid-up whole life policy with a death benefit of approximately $200,000. Ultimately, that means no more premiums, and your permanent coverage stays intact. The policy may continue to participate in dividends.(These figures are illustrative. Actual RPU amounts vary by age, insurer, policy type, and contract terms.)What Happens to the Cash Value?Your cash value doesn't disappear, it's not surrendered, and it's not paid out to you. It becomes the funding mechanism for your new, smaller policy.Once RPU is elected, the paid-up policy functions like any other whole life contract. If your insurer is a mutual company that distributes dividends, your reduced policy may still receive them. Cash value can continue to accumulate. In some cases, the death benefit gradually increases over time as dividends are applied.The difference is pace. A fully funded whole life policy with regular premium payments and Paid-Up Additions is a compounding machine. A reduced paid-up policy is more like that same machine idling; still running, still producing, but at a fraction of the output.Reduced Paid-Up vs. Other Nonforfeiture OptionsRPU isn't your only route if you need to stop paying premiums. Whole life contracts include three standard nonforfeiture options, each designed for a different set of circumstances.Cash SurrenderExtended TermReduced Paid-UpWhat happensPolicy terminated. You receive the accumulated cash value (minus fees and loans).Cash value buys a term policy at the original death benefit for a limited period.Cash value buys a smaller permanent whole life policy.Death benefitNone - coverage ends.Same as the original, but only for a fixed term.Reduced, but permanent and lifelong.Future premiumsNone - policy is cancelled.None during the term period.None - policy is fully paid up.Cash value after electionPaid out to you.No further accumulation.May continue to grow via dividends.Best suited forYou need immediate liquidity and are willing to give up coverage entirely.You want the full death benefit maintained for a specific window of time.You want to keep permanent coverage without any future premium obligation.RPU sits in the middle ground. You lose some death benefit, but you keep permanent coverage and a policy that can still participate in dividends. It's the option that preserves the most long-term value if you don't need immediate cash and don't want to gamble on a term expiration date.Which option fits best depends on what the policy is doing in your financial life. If it's just a death benefit, the calculus is one thing. If it's a cornerstone of a broader wealth strategy, the calculus shifts considerably.When Might Someone Use the Reduced Paid-Up Option?People elect RPU for all sorts of reasons, and none of them are failures. After all, life changes, and priorities shift. Either way, a good policy is designed to give you flexibility when that happens.Financial HardshipJob loss, health setbacks, a business downturn, if your income drops and premiums become unsustainable, RPU protects what you've already built without forcing you to surrender everything.RetirementAs you move from accumulation years to distribution years, your relationship with premium payments naturally changes. Some retirees elect RPU because the reduced death benefit still covers their estate planning needs, or their income can no longer support the premium payments.Inherited policiesIf you've inherited a whole life policy from a family member, you may not have the budget or the desire to continue paying premiums on a policy you didn't choose. Electing RPU keeps the coverage in force at no ongoing cost.Intentional simplificationMultiple policies, shifting coverage needs, and a desire to streamline. Sometimes RPU is just the cleanest way to right-size your insurance without losing the permanent coverage you've built over years of payments.Every one of these situations is legitimate, and the reduced paid-up option exists precisely to serve them. It's a built-in exit ramp, of sorts, not a sign that something went wrong, but proof that the policy was designed to handle real life.Reduced Paid-Up Insurance and the Infinite Banking ConceptMost content about RPU insurance treats it as an isolated insurance term. Define it, compare it to the other nonforfeiture options, and move on. But if you are using your whole life policy as part of an Infinite Banking strategy,...
The $15 Lunch That Quietly Steals the FutureBruce and I were talking recently about something that looks harmless on the surface—and yet it explains why so many people feel stuck.Bruce went to lunch and noticed groups of high school kids spending $15–$20 a day at a sit-down restaurant. Every day. And it hit him: we hear the same families say, “My kids will never be able to afford a home.”https://www.youtube.com/live/pIMRNKh4wuQThis isn’t about shaming anyone. It’s about seeing what’s really happening.Because wealth isn’t built by one big heroic moment. It’s built by the quiet decisions that happen over and over, especially when nobody’s watching.That’s why this matters: if you’re saving, you’re already doing something most people don’t. But saving alone isn’t the end goal. The goal is learning how to turn savings into wealth—so your savings stops sitting idle, stops losing ground to inflation, and becomes part of a system that builds long-term financial strength.How to Turn Savings Into Wealth (Without Chasing the Next “Hot” Thing)If you’ve been saving money, I want you to hear me clearly: you’re winning. Saving is the admission ticket. It’s the foundation. It’s the habit that makes everything else possible.But here’s the tension we see all the time:You save… and it feels like it’s just sitting there.You save… and inflation makes you wonder if you’re falling behind.You save… but you don’t feel confident about what to do next.So in this article, Bruce and I are going to walk you through a simple but powerful shift:Stop thinking of savings as “parked money.” Start thinking of it as net investable income.And then we’ll show you how to build a wealth building system that helps you:develop the financial habits of wealthy peopleavoid lifestyle creepposition capital for opportunitybuild wealth without high riskand create liquidity and control in investingYou’ll also learn why the cultural mantra “get your money moving” can be dangerous—and what to do instead.The Core System for Turning Savings Into Wealth1) How to Turn Savings Into Wealth Starts With One Habit: Delayed GratificationBruce said it plainly: without the habit of saving, you don’t have capital to deploy.And here’s what’s important: delayed gratification is not a scarcity mindset.It’s a decision to value your future self.Bruce shared the story of when he and his wife got married in 1986. They didn’t have much. They chose to live simply—walking in the park, baking a peach pie from peaches they picked themselves—instead of spending money trying to keep up appearances.And in less than a year, they saved enough not only for a down payment, but to furnish a home and cover all the startup costs of moving into it.People love to say, “It was different back then.” And yes—some things were different. But here’s the point Bruce was making:Even when you adjust for the price changes, the principle still holds: wealth is built when you consistently spend less than you make—and you do it long enough for capital to stack.This is the beginning of a savings strategy for wealth building.The real cultural battle todayI added something here because we see it everywhere: the pressure to “live now.”If you want to enjoy life now, that’s a choice. But you can’t also expect to retire early, build financial freedom, and create multi-decade stability without adopting the disciplines that make it possible.You don’t need perfection.You need a consistent system.2) Savings vs Investing for Wealth Building: Don’t Confuse “Movement” With ProgressThis is one of the most important distinctions in the entire conversation.There’s a lot of content online telling people:“Don’t let money sit.”“Get your money moving.”“Make your money work.”But movement is not the same thing as progress.Bruce told a story that makes this painfully clear: a very successful person had access to a $1 million line of credit, and someone convinced him to trade options with it.In one year, he lost $795,000.Let that sink in.Whatever inflation is doing to your savings, it is not cutting it down by 79% in a year.That’s why the question isn’t, “How do I move money faster?”The question is:How do I deploy capital wisely—without gambling?That’s what separates families who build real wealth from families who stay stuck on a boom-and-bust cycle.This is exactly why we talk about positioning capital.3) Positioning Capital: How to Position Capital for Investment OpportunitiesBruce brought up Warren Buffett, and I love this example because it resets people’s thinking.Buffett has held enormous amounts of cash at Berkshire Hathaway—because he wants to be ready when opportunity shows up.He’d rather lose a small amount to inflation for a season than put money into something he doesn’t understand and lose it permanently.His first rule is simple: don’t lose money.When you have positioned capital, you gain something most people don’t have:Control.And control creates:negotiating powerspeed when the right deal appearscalm decision-makingthe ability to say “no” to bad opportunitiesThis is the heart of a cash position strategy.Because the truth is: the best opportunities often show up during uncertainty. If you’re fully deployed and illiquid, you watch them pass. If you’re positioned, you can act.4) Net Investable Income: How to Turn Cash Savings Into Investable IncomeHere’s the mental upgrade that changes everything:Most people treat savings like this:“I’m saving up for a vacation.”“I’m saving up for a car.”“I’m saving up for the next expense.”That’s not wrong—it’s just limited.If you want to turn savings into wealth, you need another category:Savings that is designated as net investable income.This is money you’re intentionally allocating for the future—not to spend, but to deploy when the right opportunity appears.That shift turns savings into a strategic tool.And once you do that, you can build what I call a system.5) A Wealth Building System: The “Marble Machine” That Never StopsI shared a picture from my own mind that I come back to all the time.We once built a wooden 3D puzzle—one of those machines where you crank a handle and marbles run through a track, loop around, and come back to the beginning.That’s what a system is.A system is not sporadic. It’s not random. It’s not emotional.It’s rules and flow.Here’s the basic wealth system we discussed:A portion of your income automatically goes into a “wealth accumulation” bucketThat bucket holds capital safely until you’re ready to deployYou deploy into an opportunity designed to produce cash flow or equity growthThat returns cash flow back into your system (not lifestyle creep)The increased income allows you to allocate even more capital going forwardThat’s how wealth compounds in real life.This is how to build wealth with savings—because your savings becomes the engine that feeds the next level.6) Liquidity and Control in Investing: Why We Like Specially Designed Whole Life InsuranceNow let’s talk about the tool we referenced—because this is where people start to realize there are levels to this.If your wealth accumulation bucket is a standard savings account, here’s what happens:you put money inyou deploy itthe money leaves the bucketBut when we use specially designed whole life insurance (built for cash value), something different becomes possible:You can access capital without removing it.You can borrow against the cash value, deploy into an opportunity, and still have your capital continuing to grow inside the policy (depending on carrier design).That’s what we mean when we say this can amplify the system:your money can be working in more than one place at a time.And you still have benefits like a death benefit, plus the ability to use the same pool of capital over and over.This is why people search terms like:whole life insurance cash value strategycash value life insurance for liquidity and controlborrow against life insurance policy for investingInfinite Banking Conceptlife insurance as a wealth accumulation toolIs it for everyone? No. It needs to fit your cash flow, goals, and timeline. But it is one of the most powerful tools we’ve seen for people who want liquidity, control, and long-term stability without relying on banks.7) Create Guardrails: The Most Practical Way to Avoid Bad DecisionsBruce shared something I love because it’s so honest.He keeps his accumulation account at a separate credit union:not linked to his main bankno ATM cardharder to access quicklyWhy? Because systems work best when you plan for your humanity.I added this in the episode: we often act like we’re above temptation. But the truth is, most of us make worse decisions when it’s easy.Guardrails help you stay aligned with what you said you want.This is also how you avoid lifestyle creep: you don’t let investment returns drift back into everyday spending. You route them back into the system.8) Teaching the Next Generation: Give, Save, SpendWe also talked about building this into your children early.In our home, we keep it simple:Give (often 10%)Save (often 40%)Spend (often 50%)The “save” portion goes somewhere they can’t casually pull from. It’s meant to build strength and future options.Because turning savings into wealth is not just a financial technique—it’s a way of thinking and living.The Point of Turning Savings Into WealthIf you remember nothing else, remember this:Savings is not the enemy.Savings is the foundation.But to build wealth, you need to turn savings into a system:...
Investing” Is Not the Same as “Owning”A client said something to Bruce recently that stuck with me: “I despise the idea of a 401(k)… but I also know I’ll spend the money if it hits my checking account.”That single sentence captures the tension so many families feel.https://www.youtube.com/live/1d8Ln6EsBxkOn one hand, you want control. You want options. You want the ability to pivot when life changes or opportunity shows up. On the other hand, you’ve been trained to believe the “responsible” path is to lock money away, chase a rate of return, and hope the future works out.That’s why Bruce and I recorded this episode—because most people think wealth is built by finding the right investments.But the families who build long-term, sustainable wealth usually share something deeper:They’ve learned the difference between investing vs owning assets—and they prioritize control of capital.In the first 100 words, let’s say it plainly: if you’re only “investing,” you may be building a net worth number, but still living with limited access, limited flexibility, and limited decision-making. Owning assets is different. Ownership changes your options—today, not just someday.Investing” Is Not the Same as “Owning”What You’ll Learn About Investing vs Owning AssetsInvesting vs Owning Assets: What’s the Difference, Really?Taxable vs Tax-Deferred vs Tax-Free Accounts: Don’t Confuse the Account With the InvestmentWhy Too Much Money in Qualified Plans Can Limit Your OptionsTraded vs Non-Traded Investments ExplainedPrivate Real Estate Investing vs REIT: What You’re Actually ChoosingWhat Is an Accredited Investor Definition—and Why It MattersHow to Buy a Small Business to Build Wealth (Even If You’re a W-2 Earner)“Who Not How”: Build Ownership With the Right TeamInvesting vs Owning Assets in Everyday Life: A Simple Self-AssessmentInfinite Banking as a Wealth Strategy: Where Ownership and Control Show UpInvesting vs Owning Assets: Ownership Changes Your OptionsListen to the Full Episode on Investing vs Owning AssetsBook A Strategy CallFAQWhat is the difference between investing vs owning assets?What does traded vs non-traded investments explained mean?Is a REIT the same as owning real estate?Why do qualified plans like 401(k)s reduce control of capital?How do I build wealth outside the stock market?What You’ll Learn About Investing vs Owning AssetsIn this blog (and podcast), Bruce Wehner and I unpack what we called the “unseen wealth gap”—the gap between families who primarily invest and families who intentionally own assets.Here’s what you’ll gain by reading:Clear definitions: taxable vs tax-deferred vs tax-free accounts (and why most people confuse the account with the investment)The real difference between traded vs non-traded investmentsWhy so many families feel trapped inside qualified plans (401(k)s, IRAs, SEP IRAs, SIMPLE IRAs, 403(b)s, 457s)Practical ways to build wealth outside the stock market—even if you’re a W-2 earnerHow liquidity and access to capital can matter more than a projected rate of returnWhere Infinite Banking and cash value life insurance can fit into an ownership strategyAnd just to be clear: this is education and perspective—not individualized financial advice. Our goal is to help you think better, ask better questions, and make decisions with more clarity through Comprehensive Financial Planning.Investing vs Owning Assets: What’s the Difference, Really?People hear “ownership” and say, “But I own stock. Isn’t that ownership?”Technically, yes—you own shares. But for most everyday investors, that “ownership” often comes with very little control.Here’s the simplest way we can say it:Investing often means you participate in an asset’s performance, but you don’t control decisions, timing, access, or outcomes.Owning assets means you have more influence over the decisions, the structure, the cash flow, and the information—especially when you own businesses, real estate, or private assets where you can ask questions and understand what’s actually happening.Bruce made a point that’s worth repeating: with public companies, you cannot call the CEO, ask hard questions, or influence strategy. With many private ownership structures (like certain partnerships), you can talk to the sponsor, review details, ask “what happens if…,” and understand the philosophy and vision—not just the numbers.That difference—access to information and decision-making—is part of the wealth gap.Taxable vs Tax-Deferred vs Tax-Free Accounts: Don’t Confuse the Account With the InvestmentOne of the biggest misunderstandings we see is this: people treat the account type as the investment.They’ll say, “I’m investing in a Roth,” or “I’m investing in my 401(k).”But your 401(k) is not the investment. It’s a tax bucket.Taxable accountsThese are accounts where you typically pay taxes as you earn interest/dividends or realize gains (like selling a stock for a capital gain). Think brokerage accounts, bank interest, and many dividend-producing holdings.Tax-deferred accounts (qualified plans)These include 401(k)s, traditional IRAs, SEP IRAs, SIMPLE IRAs, 403(b)s, 457s, and some annuities. Tax-deferred means you generally postpone taxes now and pay later—plus you follow IRS rules for access and distribution timing.This is where many families have the majority of their money… and also where many families feel stuck.Tax-free strategies (or tax-advantaged)This category can include Roth IRAs, certain municipal bond interest, some forms of home equity, and properly structured life insurance strategies (depending on your situation and compliance). The point isn’t that everything is “tax-free.” The point is: many families never even explore this category beyond “Roth or not.”When you only see two options—pay tax now or pay tax later—you miss the strategies that create flexibility.Why Too Much Money in Qualified Plans Can Limit Your OptionsBruce said something that we see all the time:Some families have 95%—sometimes close to 100%—of their money inside qualified plans.Then life happens:A business opportunity shows upA real estate purchase requires speedA family emergency requires liquidityA market downturn makes you hesitate to sell assetsA capital call comes dueAnd suddenly the real problem isn’t “returns.”It’s access.If you want to understand how to build wealth outside the stock market, start with this question:Do I have enough capital outside qualified plans to act when opportunity (or adversity) arrives?This is why we talk so much about liquidity strategy and access to capital. Control isn’t a philosophy. It’s practical.Traded vs Non-Traded Investments ExplainedThis is one of the most important distinctions in the whole conversation.Traded assetsTraded assets are priced and exchanged in public markets—stocks, many ETFs, and other exchange-traded products. You get liquidity, but you also get the “whims” of market psychology.Bruce gave a powerful example: an apartment portfolio could be collecting rent just fine, but if investors panic, the traded price can drop anyway because people sell.So the asset can be stable—while the price swings.Non-traded assetsNon-traded assets are not priced minute-by-minute on an exchange. That usually means less liquidity, but potentially more stability in valuation and often different risk/return expectations.Bruce used the example of non-traded real estate structures where the sponsor purchases assets, manages operations, and the investors participate based on the structure.This is where the key phrase comes in: liquidity and access to capital.Non-traded can mean you can’t exit quickly. That can be a feature or a risk—depending on whether you planned for it.Private Real Estate Investing vs REIT: What You’re Actually ChoosingReal estate is a perfect example because people can “invest” in real estate in multiple ways.REITsA REIT (Real Estate Investment Trust) can be traded or non-traded. The big difference you experience as an investor is usually liquidity and market pricing behavior.Private real estate ownershipThis includes owning rental properties directly, participating in partnerships, or investing in private deals like syndications (depending on eligibility and suitability).If you’re asking, “Is this investing or owning?” here’s a helpful lens:If you’re buying a ticker symbol, you’re mostly buying market exposure.If you’re buying an interest in a specific asset and can ask questions about operations, assumptions, and scenarios, you’re closer to ownership behavior—even if you’re not the operator.And of course, none of this is “good” or “bad” by default. The question is: what fits your goals and your risk tolerance?What Is an Accredited Investor Definition—and Why It MattersBruce explained the reality that certain private investments require accredited investor status.At a high level, that status can involve income thresholds or net worth thresholds (with certain exclusions, like primary residence equity). The reason it matters is simple: access.But let’s not miss the bigger point:You don’t need to be accredited to start shifting from “only investing” to “increasing ownership.”Business ownership, skill-based service businesses, local cash-flowing acquisitions, and many forms of direct real estate ownership do not require that label.So if you’re not accredited, don’t let that become a mental dead end. There are still practical ownership paths.How to Buy a Small Business to Build Wealth (Even If You’re a W-2 Earner)Rachel here—this part matters because people assume business ownership has to mean:Starting a tech companyBuying a major franchiseQuitting their job overnight...
The “Real Show” Reminder (and why that matters)We kicked off this episode the way we often do—by being real. A quick tech hiccup, a laugh, and the reminder that this is not a polished production pretending to be perfect. It’s a real show, with real people, talking about real money decisions.https://www.youtube.com/live/JDkaHi_66d8And that imperfect start is a perfect picture of what’s happening in the Infinite Banking world right now.As Infinite Banking becomes more popular, the internet makes it look clean and effortless: slick graphics, big promises, “hacks,” and fast results. But families don’t need more hype. They need clarity.That’s why this Nelson Nash Think Tank 2026 recap matters. It’s one of the few environments where serious practitioners gather—not to sell—but to refine thinking, challenge assumptions, and protect the integrity of Nelson Nash’s original message.If you’re a family leader who wants to use the Infinite Banking Concept as a long-term strategy—not a short-term trend—this is for you.The “Real Show” Reminder (and why that matters)What you’ll gain from this Nelson Nash Think Tank 2026 recapWhat is the Nelson Nash Think Tank (and why it’s different)?Nelson Nash’s first rule and the 2026 themeInternal rate of return vs volume in Infinite Banking: what families are hearing onlineWhy “maximum early cash value” can backfire in Infinite Banking policy designModified Endowment Contract (MEC) and the 7-pay test: what to knowHow to choose an Infinite Banking practitioner (and avoid bad advice)“Insurance companies are not banks”: understanding the banking processThink long range as a way of life, not a quick tacticWhere Infinite Banking is headed: young people, AI, and fintechWhat this Nelson Nash Think Tank 2026 recap means for your familyListen to the full episode (Nelson Nash Think Tank 2026 recap)Book A Strategy CallWhat you’ll gain from this Nelson Nash Think Tank 2026 recapIn this article, we’re pulling back the curtain on what was shared at the Nelson Nash Think Tank 2026—a practitioner-focused environment where the emphasis was think long range, improve policy design conversations, and address the growing confusion created by clickbait marketing and “shortcut” policy claims.Here’s what you’ll walk away with:What the Think Tank is (and why it’s not a sales event)Why “think long range” was the theme—and why families should pay attentionThe real issue behind “maximum early cash value” and skinny-based designsHow to spot Infinite Banking misconceptions and marketing tacticsWhat’s coming with AI and fintech in life insurance—and what isn’t changingPractical guidance for families who want to take control of the banking functionWhat is the Nelson Nash Think Tank (and why it’s different)?The Think Tank isn’t built for the general public. It’s designed to sharpen the people who teach and implement the concept. You typically attend as a practitioner, someone in the practitioner program, or as a guest of a practitioner (which can include clients or people considering becoming practitioners).It’s also intentionally immersive. The days start early with breakfast, run through sessions into late afternoon, and then continue with dinners, vendor conversations, and deep discussions with fellow practitioners late into the night. You don’t go to be entertained. You go to be challenged, stretched, and sharpened.And that matters right now because Infinite Banking has become more searchable, more popular, and—unfortunately—more misrepresented. When something powerful spreads quickly, stewardship matters more.Nelson Nash’s first rule and the 2026 themeThe theme this year was think long range, and that’s not a catchy slogan. It’s foundational to the Infinite Banking Concept as Nelson Nash taught it.Short-term thinking is the default posture of our culture. Social media rewards it. Marketing rewards it. Even many financial products are sold with it: “What can you get fast?” “What can you access now?” “How can you win this year?”But Infinite Banking was never meant to be a short-term move. It’s meant to be a lifetime strategy.Thinking long range means you’re making decisions from the perspective of:building stability, not excitementcreating options, not dependenceprotecting your family’s future, not chasing quick winsdesigning a system that can bless generations, not just solve this monthThat mindset shift is what separates families who use Infinite Banking wisely from families who get caught in the noise.Internal rate of return vs volume in Infinite Banking: what families are hearing onlineOne of the biggest recurring themes was the temptation to judge policies primarily by internal rate of return (IRR)—especially in the early years.If you’ve spent any time online looking at Infinite Banking, you’ve likely seen people argue about illustrations, early cash value, and “best” design strategies. Many of those arguments are framed as if the only goal is maximizing the numbers as quickly as possible.But here’s the problem: you can “win” an early IRR argument while losing the long-range strategy.A powerful presentation at the Think Tank used a visual approach—backed by math—to show something families need to hear clearly: focusing on early cash value often creates tradeoffs that reduce your future capacity.There are no solutions—only compromises.And a compromise isn’t bad when you understand it. The danger is when someone sells a compromise like it’s a guaranteed solution.The heart of the point was this: in Infinite Banking, the rate is not nearly as important as the volume of dollars you can control over your lifetime. That’s how commercial banks and major financial institutions think. A small return on a massive volume becomes a large outcome.For families, that translates into a different question entirely:How much of what flows through your hands will you capture and control?That question changes everything.Why “maximum early cash value” can backfire in Infinite Banking policy designOne of the most popular marketing angles today is the push for “maximum early cash value,” often achieved through skinny-based policies with high PUAs.The pitch usually sounds like this: get as much cash value as possible early so you can “put your money to work somewhere else.”Here’s what often doesn’t get explained.Some aggressive designs rely on structures that only allow maximum funding for a limited period (for example, seven years). After that funding window ends—often due to IRS rules tied to MEC limits—the rider or structure may drop off, and you can no longer fund in the same way.The common comeback is: “Just start another policy.”But real life isn’t a spreadsheet.Starting over can reset efficiency. Health and insurability can change. Income changes. Goals change. Markets change. And a strategy that depends on you repeatedly starting new policies assumes a stability most families simply can’t guarantee.The bigger concern is the mindset that this trains: a series of short sprints instead of building a lifelong system.Thinking long range means designing for durability, flexibility, and sustainability—not just speed.Modified Endowment Contract (MEC) and the 7-pay test: what to knowYou don’t need to be a tax expert to understand why MEC rules matter, but you do need to know that they exist—because many “max fund fast” strategies bump up against them.A Modified Endowment Contract (MEC) is a policy that fails IRS funding limits (often related to the 7-pay test). When a policy becomes a MEC, the tax treatment of distributions changes, and it can reduce some of the advantages families expect when they hear “tax favored.”That’s why certain policy designs are built around managing those limits—sometimes by using structures that give you a short window of maximum funding.The key takeaway is simple: if someone is promising “perfect” early cash value without explaining tradeoffs, funding limits, and long-term implications, you’re not being educated. You’re being marketed to.And marketing can be expensive.How to choose an Infinite Banking practitioner (and avoid bad advice)As Infinite Banking grows, a disappointing trend has emerged: clickbait content designed to stir controversy or attract attention. Some marketers now lead with “what’s wrong with IBC” as a hook—even while selling it—because negativity generates clicks.That kind of infighting confuses families and erodes trust.So what should you watch for?Red flags to take seriouslyBe cautious if someone says or implies:“You don’t have to make premium payments.”“These aren’t premiums, they’re deposits” (without clear explanation that it’s life insurance).“You’ll get cars for free if you do this long enough.”“This is the only policy design that works.”“You’re borrowing at X and earning Y so you’re losing money” using simplistic one-year comparisons.Another red flag: when someone makes you feel urgency—like you must act now without fully understanding what you’re buying.If it feels too good to be true, your intuition is likely picking up on something real.A healthier question to askInstead of asking, “How fast can I get cash value?” ask:“How will this policy design serve my family over decades?”“How long can I realistically fund this?”“What compromises are being made to get early access?”“How does this fit into my long-term cash flow strategy?”That’s how you protect yourself—and how you start thinking like the kind of leader this strategy requires.“Insurance companies are not banks”: understanding the banking processInsurance companies have been emphasizing that they are not banks. That’s true.Infinite Banking isn’t about turning a life insurance company into a literal b
The moment we realized “liquidity” isn’t a theoryThirteen years ago, Lucas and I thought we were being responsible by storing a lot of our capital in gold and silver. It felt safe. It felt timeless. It felt like the kind of move people make when they’re thinking long-term.And then we needed cash.https://www.youtube.com/watch?v=M3go-H641ZUNot someday. Not “in retirement.” We needed liquidity for real life—building a business, making decisions, moving when opportunities showed up. And in that moment, we learned something the hard way: an asset can be valuable and still be a terrible place to store accessible capital.The spot price was down. We had to sell at the wrong time, and that’s when the question got painfully simple:Where do you store capital so you can access it when you want it—without losing control, without begging permission, and without being at the mercy of timing?That question is what led us to build what we now call our family banking system—and in this Part 6 case study, we’re pulling back the curtain again.In this Marshall Family Banking System Case Study: In-Force vs Original Illustration (Part 6), Bruce Wehner and I walk you through the real mechanics: premium paid, cash value, loan availability, in-force illustrations, original projections, and what actually changed over time.The moment we realized “liquidity” isn’t a theoryWhat you’ll learn from this Marshall Family Banking System case studyWhat is a family banking system?Why we started: liquidity, then legacyFamily banking system case study: our “13-year” system with a reset (1035 exchange)Premium paid vs cash value: the real numbers (round terms)Cash value vs loan value in a family banking system“Do you still earn dividends with a policy loan?”How a family banking system works year-to-year: the numbers keep risingIn-force illustration vs original illustration: why our numbers changedWhy illustrations change (dividends change)The compounding effect: what changed by age 75Break-even in a family banking system: what it means and what it doesn’tWhat’s inside an annual statement: dividends, PUAs, and how death benefit risesPaid-up additions rider (PUA) and compoundingDirect vs non-direct recognition: what to knowAnnual premium payment and “premium refund”: a detail most people missThe core mindset shift: this is about control of capitalWhat this Part 6 case study provesListen to the full episodeBook A Strategy CallFAQWhat is a family banking system?Is a family banking system the same as Infinite Banking?Why pay whole life premiums annually in a family banking system?When does a family banking system using whole life insurance break even?What is a whole life insurance policy in-force illustration?Why does a whole life insurance policy's in-force illustration differ from the original illustration?What you’ll learn from this Marshall Family Banking System case studyIf you’ve ever looked at a whole life insurance illustration and wondered, “Can I trust these numbers?” you’re not alone.And if you’ve ever asked:“What happens to cash value when you take a policy loan?”“Do you still earn dividends with a policy loan?”“How do I compare an in-force illustration vs original illustration?”“When does a family banking system break even?”…then this article is for you.This is Part 6 in our series, and it’s designed to help you understand how a family banking system works using real policy performance—not theory, not hype, and not marketing claims.Here’s what you’ll gain by reading:A clear picture of family banking system with whole life insurance and why we use itWhat our numbers look like (in round terms) after years of fundingThe difference between cash value vs loan value (and why that matters)Why in-force results can differ from the original illustrationHow dividends changing over time can materially impact long-range projectionsWhy we’re still committed—and why this is about control, not “rate of return”What is a family banking system?A family banking system is a capital control system—built to give your family a dependable place to store cash, grow it steadily, and access it on demand.Bruce and I both see this with families every day: the biggest stress isn’t usually “investment performance.” It’s capital access. It’s the ability to make a decision when life happens—without panic, without selling assets at the wrong time, and without losing future opportunity because you couldn’t move quickly.For us, our family bank is built on whole life insurance cash value from a mutual company, structured intentionally for:Liquidity and accessPredictable growth (guarantees + non-guaranteed dividends)A growing death benefit for multi-generational wealthThe ability to borrow against the policy while the cash value continues to compoundAnd I want to say this plainly: this is not an investment.This is savings. This is capitalization. This is a financial foundation from which you can invest with confidence.That distinction matters.Why we started: liquidity, then legacyWe started this journey because we needed liquidity. Later, we realized something deeper: a family banking system is not just about “having cash.” It’s about building a structure that can last.After my near-death experience, our perspective on money and estate planning shifted permanently. We began asking a different question:What would it look like to leave our children more than money—while also leaving them a financial system that works?That’s where the multi-generational aspect of this became central. Lucas said it simply in the episode: it’s for now and for the future.Family banking system case study: our “13-year” system with a reset (1035 exchange)One important clarification: when we say “13-year update,” it’s because the concept has been in our family for 13+ years.But the specific policies we’re showing in this case study are newer because we did a 1035 exchange—moving cash value from one policy to new policies. That move effectively hit a reset button in terms of what you’ll see on the current policy timeline.So while the family banking system is 13+ years in, these particular contracts are five policy years into the current structure.That matters, because a lot of people look at year 1–5 and get discouraged. In early years, policies have costs, and break-even in whole life insurance doesn’t happen immediately.But “break-even” isn’t the only goal—and really it’s not even the most important measurement.Premium paid vs cash value: the real numbers (round terms)Let’s make this tangible.At the time we pulled these figures (Watch the YouTube video to see all the numbers):We had paid a little over $300,000 in total premium into the two policiesOur total cash value (if we paid off the outstanding loan) was roughly $282,000The amount we could access as a loan (if we paid off the outstanding loan) was roughly $260,000We currently had a policy loan of about $48,000With that loan in place:Cash value showed lower (because of mechanics like premium refund timing and reporting)The available loan value was lower (because part of the cash value is collateralized by the loan)Here’s the key takeaway for your own family banking system with whole life insurance:Cash value vs loan value in a family banking systemCash value is the pool. Loan value is how much the company will allow you to borrow against that pool.When you take a policy loan, you are not “withdrawing” your cash value. You’re using the insurance company’s money and collateralizing your cash value.That means:Your cash value can keep compoundingYou can repay the loan and free up borrowing capacity againYou are not interrupting the internal growth the same way you would if you pulled money out of a bank accountBruce made this point clearly: banks stop paying you interest on money you remove. With policy loans, the system behaves differently because you’re borrowing against the reserve, not pulling your capital out.“Do you still earn dividends with a policy loan?”In our case, yes—because our company is non-direct recognition.That means the company does not reduce the dividend crediting due to the presence of a loan. (Some companies do recognize the loan and adjust dividends; those are direct recognition companies.)Bruce’s point was balanced, and I agree: it’s not that one is “good” and the other is “bad.” There are tradeoffs. There are no solutions—only compromises.But you need to understand which kind you have, because it affects how policy loans show up in performance over time.How a family banking system works year-to-year: the numbers keep risingOne of the most encouraging things we’ve seen is simple: The amount we can borrow has continued to increase year after year.A family banking system is not built for bragging rights. It’s built for usability.The question isn’t “What’s the highest theoretical projection?”The question is “How much capital can I access when I need it—without breaking my plan?”When you consistently fund a system, you build a growing reservoir of capital that you control. This is why we call it an “emergency/opportunity fund.” It’s there for emergencies and opportunities.In-force illustration vs original illustration: why our numbers changedNow let’s get to the core of this Part 6 case study:Marshall Family Banking System Case Study: In-Force vs Original Illustration (Part 6) is about comparing the illustration you get when you start… versus the illustration you get after real years of performance.Here’s what we showed:The original illustration used the dividend crediting rate at the time the policy was issued and projected it out to age 121.The in-force illustration used the current dividend cr
The “Clean Slate” That Changes Your DecisionsEvery January, Bruce and I have this running joke: as a society, we collectively decide that January 1 magically flips a switch—life will be calmer, more organized, more intentional.Bruce thinks it’s strange. (He’s not wrong.)I love it. I love a clean slate. A fresh start. A targeted window that says, “This is the beginning.”https://www.youtube.com/live/_cgm7sJ6SDcAnd here’s why that matters for your money: when you feel like you have a beginning, you’re more willing to think differently. You stop drifting on autopilot and start asking better questions—especially the one Bruce kept coming back to in our conversation:Why do you do what you do financially?That one question is the doorway to confidence. Not “confidence that you’ll always be right,” but confidence that you’re making the best decision with the information you have—while staying flexible enough to adjust when new information shows up.That’s the heart of this post: the financial strategy for families in 2026 isn’t a single product or prediction. It’s a way of thinking—a framework—that helps you build control, cash flow, and peace of mind in uncertain markets.The “Clean Slate” That Changes Your DecisionsWhat You’ll Gain from This Financial Strategy for Families in 2026Financial strategy for families starts with one skill: thinking about your thinkingWhat fundamentally changed—and why “uncertain markets” feel louder than ever1) Information moves instantly—and it affects how you use your money2) The 24-hour news cycle magnifies fear—and shrinks your time horizon3) AI disruption adds both opportunity and anxiety4) Cryptocurrency continues to create both opportunity and harm5) Debt levels are enormous—and debt quietly reduces control of capitalWhy the typical accumulation model fails families in uncertain marketsSequence of returns risk: why averages don’t protect your retirementFinancial strategy for families in uncertain markets: control of capital is the core principleCash flow planning and the liquidity strategy every family needs in 2026 and beyondHow to build liquidity for market volatilityDebt management strategy: why debt steals optionality for familiesWhy families need professional guidance more than ever in 2026Optionality: how to create a family wealth plan that lasts generationsYour most valuable asset isn’t your portfolio—it’s your family’s capacityThe Financial Strategy Every Family Needs in 2026 and BeyondListen to the Full Episode on Financial Strategy for Families in 2026 and BeyondBook A Strategy CallFAQ: Financial Strategy for Families in 2026 and BeyondWhat is the best financial strategy for families?How do you build liquidity for market volatility?How much cash reserve should a family keep in 2026 and beyond?What’s the difference between cash flow and net worth for families?How can families protect wealth from volatility without going to all cash?How does debt reduce control of capital?How can AI impact jobs and investing decisions in 2026 and beyond?What does “control of capital” mean in personal finance?What You’ll Gain from This Financial Strategy for Families in 2026If you’ve felt the financial landscape shifting—tax uncertainty, persistent inflation, volatile markets, conflicting advice, AI disruption, crypto hype, growing debt, and nonstop headlines—you’re not imagining it. The pace of change is faster.But here’s the good news: you don’t need a crystal ball to win financially in 2026. You need a system grounded in principles that hold up in any environment.In this article, we’ll walk you through a financial framework for uncertain markets that’s built on:control of capitalcash flow planningliquidity strategy (liquidity buffer)optionality (having choices even when the “rules” change)decision-making confidence under uncertaintymulti-generational planning that prepares your family for the future you can’t predictAnd we’ll also show you why the typical accumulation-based model leaves many families exposed—especially when volatility and sequence of returns risk collide.Financial strategy for families starts with one skill: thinking about your thinkingBruce said something that I think every family needs right now:Think about your thinking.Most people don’t actually have a money strategy. They have inherited assumptions.They’re doing what coworkers do. What parents did. What the internet said. What the “guru” recommended. What the algorithm fed them.In 2026, the families who thrive won’t be the best guessers. They’ll be the best designers.And the first step in design is awareness:Why am I saving this way?Why am I investing this way?Why am I in debt?Why does this feel “safe” to me?What am I assuming about the next 10–20 years?This isn’t about obsessing. It’s about choosing on purpose—so you can move forward with confidence, not second-guessing.What fundamentally changed—and why “uncertain markets” feel louder than everWhen we talked about what’s changed heading into 2026, Bruce laid out the big forces that are shaping the environment families are making decisions inside of:1) Information moves instantly—and it affects how you use your moneyThe world feels smaller because it is smaller. A person in the Caribbean can follow the same investing narrative as someone in Texas. Advice travels fast.That can be helpful. It can also be harmful—because it creates noise, urgency, and “trend pressure.” If you’re constantly being told the newest move, the newest hack, the newest asset class… your financial decisions can become reactive instead of strategic.2) The 24-hour news cycle magnifies fear—and shrinks your time horizonHere’s a hard truth: fear makes people short-term.When headlines feel nonstop, people assume they need to do something right now. But families build wealth through disciplined, long-range thinking—especially when markets are volatile.3) AI disruption adds both opportunity and anxietyAI is not the first major innovation wave (we’ve seen this with cars, the internet, tech booms). But it’s moving faster. Some companies will soar. Some will crash. Some industries will be disrupted. New industries will emerge.That uncertainty pushes people toward emotional decision-making.4) Cryptocurrency continues to create both opportunity and harmCrypto is still sorting itself out. Some parts thrive, others die. Governments are still deciding how they’ll regulate and respond. That uncertainty can create both speculation and fear—and those are not the foundations of a stable family wealth plan.5) Debt levels are enormous—and debt quietly reduces control of capitalDebt is more than a number. It changes who controls your future cash flow.Bruce said it plainly: when you’re in debt, you’re not controlling capital—capital is flowing away from you.And when you combine high debt with volatility, it can create pressure-cooker decision-making.Why the typical accumulation model fails families in uncertain marketsMost modern financial planning is built on a familiar script:Work and accumulate assetsGrow net worthRetireLive on portfolio growth without touching principalThat model depends on one assumption: that your assets will grow smoothly enough, at the right time, to support your lifestyle.But in uncertain markets, families don’t just face market risk.They face timing risk.Sequence of returns risk: why averages don’t protect your retirementBruce explained this in a way that cuts through the noise: averages don’t matter if timing is wrong.Two portfolios can have the same “average return” over 20 years—but if one experiences losses early (when you’re withdrawing income), the outcome can be dramatically worse.That’s why “the market averages 10%” is not a strategy. It’s a soundbite.A real strategy considers:when you need incomehow much liquidity you havewhat happens if markets drop earlywhether your plan depends on selling assets in a down yearIf your plan requires everything to go “mostly right” in the early years of retirement, you don’t have a plan—you have a hope.Financial strategy for families in uncertain markets: control of capital is the core principleWhen we stripped the conversation down to the essentials, we kept coming back to one word:Control.Control doesn’t mean you can control the market. It means you can control your position.And your position is what determines your options.When you control capital, you have money you can access and direct:for emergenciesfor opportunityfor strategic investingfor business pivotsfor family needsfor tax planning decisionsfor downturns without panicThis is why we talk so much about control of capital. It’s not a buzzword. It’s a survival advantage—and a growth advantage.Cash flow planning and the liquidity strategy every family needs in 2026 and beyondLet’s make this practical.When volatility increases, you need a plan that doesn’t force you to liquidate investments at the wrong time.That requires a liquidity buffer.How to build liquidity for market volatilityLiquidity isn’t just “cash in a checking account.” Liquidity is access. It’s the ability to move without penalties, delays, or begging for approval.A strong liquidity strategy (liquidity buffer) does two things:It keeps you stable in crisisIt keeps you ready in opportunityBruce said it perfectly: opportunities find cash.And here’s the funny thing—when you have liquidity, you start noticing opportunities you would’ve missed before.We talked about the “Beetle effect” (your brain notices what it’s primed to notice). When you have capital available, your radar changes. You see deals, investments, partnerships,...
The Questions No One Can Answer After Dad DiesA man spends his life building a sophisticated estate plan—brilliant strategies, impeccable legal work, a network of trusted advisors, and layers upon layers of entities. His son is a lawyer. He even gets 18 months to prepare before his father passes.https://www.youtube.com/live/hCA_R52ZyrQAnd yet, within days of his death, people start asking questions he can’t answer.That story belongs to Josh Kanter, founder of Leaf Planner—and it’s exactly why Bruce and I wanted to bring him to The Money Advantage Podcast. Because if a prepared, trained, deeply involved son can still feel “in the dark,” what does that mean for the rest of the family?That’s where preserving generational wealth gets real.The Questions No One Can Answer After Dad DiesWhy Preserving Generational Wealth Requires More Than PaperworkPreserving generational wealth starts with the real erosion riskPreserving generational wealth means planning is dynamic, not a “final destination”Family governance and family wealth communication are the foundationHow to prevent generational wealth erosion with a “transparency continuum”How to talk to your kids about family wealth without creating entitlementWhat is a family office and do I need oneLeaf Planner: a family office portal built for real life, not just deathHow to organize estate planning documents for heirs without losing the storyPreserving generational wealth requires planning for advisor transitions tooA practical checklist for wealth transfer communicationPreserving generational wealth begins hereThe Real Way to Preserve Generational WealthListen to the Full Episode With Josh Kanter (Leaf Planner)Book A Strategy CallFAQ How do you prevent generational wealth erosion?When should you tell your kids your net worth?What is a family office and do I need one?How do you organize estate planning documents for heirs?How do you talk to your kids about family wealth?What is Leaf Planner?Why Preserving Generational Wealth Requires More Than PaperworkIn this blog (and podcast), we’re talking about preserving generational wealth in a way most families never hear about. Not just the legal structures. Not just the investments. Not just the “where are the documents?”We’re talking about the part that causes the most damage when it’s missing: communication, context, and continuity.You’ll walk away with:A practical view of why family wealth communication matters as much as financial strategyA healthier way to think about transparency with kids (hint: it’s not “tell them everything” or “tell them nothing”)A simple framework for preventing generational wealth erosionA clear explanation of what Leaf Planner is and why it’s different from a spreadsheet or document vaultAnd yes—if preserving generational wealth is your goal, you’ll see why the “why” behind your plan may be the most valuable asset you pass down.Preserving generational wealth starts with the real erosion riskBruce said something on the show that cuts straight to the heart of the issue:If you’re going to have generational wealth, you have to make sure there’s no erosion to that wealth.Most people assume erosion is mainly taxes, market losses, or poor returns. Those matter. But what surprises families is how often the real erosion comes from people—especially family members—who don’t have shared understanding, shared language, and shared purpose.You can have the best legal instruments in the world and still lose your family unity.Josh’s experience in the family office world (and inside his own multi-branch family) reinforced this: documents alone don’t preserve families. And if the family fractures, the wealth typically follows.That’s why preserving generational wealth is never only financial—it’s relational.Preserving generational wealth means planning is dynamic, not a “final destination”Bruce also brought up another critical point: families often treat planning like you “arrive.”But wealth planning isn’t a one-and-done event. It’s a living system.Your assets change.Your family changes.Your kids grow up.Advisors retire.Health shifts.Life happens.Preserving generational wealth requires ongoing communication—especially before crisis hits—so your family has the muscle memory to navigate pressure without panic.Josh shared a line that stuck with me: don’t make decisions at dusk—when you think you can see, but you can’t. That’s what crisis does. It blurs judgment.So the goal is to practice communication in times of calm—so your family can function in times of stress.Family governance and family wealth communication are the foundationWhen Bruce asked Josh to boil it down—what’s the one thing families must cover to avoid erosion—Josh answered with something many people don’t expect:Communication.And not just “let’s have a meeting.”He was talking about family wealth communication that includes:ValuesShared purposeDecision-making normsConflict navigationRole clarity (who is speaking as parent vs co-owner vs trustee vs sibling)He told a story from Jay Hughes about “switching hats.” In one moment, you might be the boss. In another, you’re dad. Families get in trouble when they don’t know which role is driving the conversation.That’s family governance in practice—how a family makes decisions together, especially when money and relationships overlap.If you want to preserve wealth across generations, you can’t ignore how your family communicates. Because the biggest “risk” isn’t the market.It’s misunderstanding that turns into resentment.It’s silence that turns into assumptions.It’s a lack of clarity that turns into conflict.How to prevent generational wealth erosion with a “transparency continuum”One of the most helpful concepts Josh shared was what he called a transparency continuum.Most parents ask, “When should we tell the kids what the balance sheet is?”As if transparency is a binary choice:Show everythingShow nothingJosh pushed back: transparency isn’t binary. It’s a continuum.Here’s what that means in real life:You can teach values before numbers.You can teach decision-making before net worth.You can teach stewardship before statements.And when families do that, the “numbers conversation” becomes far less emotionally charged—because the kids already understand the principles.I loved this because it connects so closely with what we teach: you don’t start with a trust. You start with meaning.If your kids don’t know why your family does what it does, a pile of assets will never feel like a blessing. It will feel like confusion—or worse, a weapon.How to talk to your kids about family wealth without creating entitlementThis is where preserving generational wealth becomes deeply practical.Josh shared a personal example: he and his wife make significant annual gifts to their kids (in their 20s), and he has zero hesitation that they’ll handle it wisely.Why?Because they’ve been having these conversations for years.That’s the entire point of the transparency continuum: you prepare long before you transfer.If you want your kids to steward wealth well, start by inviting them into responsibility early:household contributionwork ethicsavinggenerositydelayed gratificationclear expectationsThen, over time, you build their capacity for larger stewardship.What is a family office and do I need oneJosh offered a definition that’s refreshing and accessible: if you have wealth that could become multi-generational, you’re functioning like a family office—at some level—because coordination matters.Most families don’t need a traditional single-family office.But many families do need a family office model:Someone coordinating the moving piecesA system to organize documents, accounts, entities, advisors, and responsibilitiesA way to reduce dependency on “the hub” person who knows everythingBecause here’s what Josh saw after his father died:Information was either everywhere or nowhere.That’s what happens when everything lives in one person’s brain, one email inbox, one file cabinet, one assistant, one advisor relationship.And that’s exactly where preserving generational wealth becomes fragile.Leaf Planner: a family office portal built for real life, not just deathAt this point in the conversation, I asked Josh to explain Leaf Planner—because many families have heard of tools that store documents or list accounts.He acknowledged those tools and even named examples like spreadsheets, Box/Dropbox/Drive, and other organizers.But he explained what Leaf Planner aims to do differently:Not just store information—map it.Leaf Planner is designed like a living “mind map” of a family’s world:entitiestrustsassetsadvisorsinsurancepropertiesresponsibilitiestasksstoriesthe “why” behind decisionsIt answers questions families don’t realize they’ll have until they’re in the moment:Why did mom pick Bruce as trustee?Why is Rachel the trust protector?Where is the fine art insurance?Which auction house relationship matters if we sell?Which advisor touches which decision?What happens if the 80-year-old lawyer retires?This is the difference between a document vault and a family office portal.A vault says, “Here are the documents.”A portal says, “Here is how the whole system connects—and why.”How to organize estate planning documents for heirs without losing the storyJosh shared something that matters deeply: it’s not only about preserving wealth.It’s about preserving family.He said families don’t end up in the news because they missed 10 basis points of performance....
The Moment “Confident” Sounds Like “Certain”A few weeks ago, we found ourselves talking about how quickly AI is moving. It’s not just that it can answer questions fast—it’s that it can sound certain while doing it.https://www.youtube.com/live/mWd2QqPzFWAAnd when you’re staring at a big money decision—debt, investing, taxes, retirement—certainty feels like relief. It feels like clarity.But after thousands of conversations with real families, we’ve learned something that never changes: people don’t just need answers. They need judgment. They need wisdom. They need someone who can hear what’s not being said and help them make decisions they can live with.So we’re tackling the question head-on: Will AI replace financial advisors?The Moment “Confident” Sounds Like “Certain”The Promise and the Limits of an AI Financial AdvisorWill AI Replace Financial Advisors? Start With the Real Problem: Information Overload, Wisdom ShortageAI Financial Planning Tools Can Help You Find Information Fast—but Speed Isn’t the Same as StewardshipAI Financial Advisor vs Human Financial Advisor: What AI Does Well (And Why That’s a Gift)What AI Can and Can’t Do in Financial Advice: AI Excels at Technical Speed and StructureHow to Use AI With a Financial Advisor: Let AI Raise Your Questions, Not Replace Your CounselChatGPT Financial Advice and the Biggest Risk: It Doesn’t Know What’s True—It Knows What’s RepeatedCan You Trust AI for Financial Advice? A Simple FrameworkRobo-advisor vs Financial Advisor: Why Optimization Isn’t the Same as GuidanceAI and Behavioral Finance Coaching: The Moment Emotion Enters, the Math Isn’t EnoughRoth Conversions and the Problem With “Perfect Math”: You Have to Know the Future (And You Don’t)AI in Wealth Management Helps With Modeling—but It Can’t Carry the Weight of Your MortalityPrivacy Risks Sharing Financial Data With AI: A Practical BoundaryThe Bottom Line: AI Can Enhance Wisdom, But It Cannot Replace ItWill AI Replace Financial Advisors? The Better Question Is: Who’s Leading?Use the Tool, Don’t Hand Over the WheelListen to the Full Episode on “Will AI Replace Financial Advisors?”Book A Strategy CallFAQWill AI replace financial advisors?Is an AI financial advisor trustworthy?What is the difference between a robo-advisor vs financial advisor?Can you trust ChatGPT financial advice?What are the biggest privacy risks sharing financial data with AI?How do I use AI in financial planning without making mistakes?What AI can and can’t do in financial advice?How to use AI with a financial advisor?The Promise and the Limits of an AI Financial AdvisorIf you’ve been asking, “Will AI replace financial advisors?” you’re not alone. With ChatGPT and other tools now in everyone’s pocket, it’s natural to wonder if you can depend on technology to do what an advisor does—maybe even better than a human.In this blog, you’ll walk away with:A clear view of what an AI financial advisor can do well todayThe limits of ChatGPT financial advice (and why it matters)The real difference in AI vs human financial advisor—and why it isn’t mostly about mathHow to use AI in financial planning without outsourcing your responsibilityA simple framework for letting AI serve your decisions—not lead themWe’re not here to hype AI or fear it. We’re here to help you use it wisely—so you stay in control of your financial life.Will AI Replace Financial Advisors? Start With the Real Problem: Information Overload, Wisdom ShortageWe live in a world drowning in information. You can Google anything. You can ask ChatGPT anything. You can get 1,500 opinions in five minutes—especially about money.But access to information isn’t the same as knowing what to do.That’s why this conversation matters: we don’t just have an information problem. We have a wisdom problem. You can search “how to invest” or “how to pay off debt” and get answers that sound smart—but those answers don’t actually understand your life, your goals, your emotions, your discipline level, your blind spots, your family responsibilities, or your values.People don’t get stuck because they can’t find an answer. They get stuck because they can’t tell which answer is true, which answer is opinion, and which answer applies to their reality.This is the first reason the “AI will replace advisors” narrative falls short. AI can multiply information. But it cannot automatically create wisdom inside you.AI Financial Planning Tools Can Help You Find Information Fast—but Speed Isn’t the Same as StewardshipAI in the financial world isn’t brand new. The industry has used advanced modeling tools for years—Monte Carlo simulations, tax planning software, retirement projections, portfolio analytics. What’s changed is how accessible and conversational it’s become.Now you can ask an AI tool a question like you’d ask a person. That’s powerful.But it also creates a temptation: treating the tool like a decision-maker instead of a tool.And that’s where people can get harmed—not because AI is “evil,” but because it’s easy to transfer your trust to something that sounds confident.AI Financial Advisor vs Human Financial Advisor: What AI Does Well (And Why That’s a Gift)Let’s say this plainly: AI can be a good tool. Used well, it can help you become more prepared, more organized, and more proactive.Here are practical ways AI in financial planning is already genuinely helpful.What AI Can and Can’t Do in Financial Advice: AI Excels at Technical Speed and StructureAI is excellent at gathering technical information quickly and helping you manipulate scenarios. Instead of building spreadsheets, calculators, and formulas from scratch, you can get a structured outline in minutes.It can help you:Summarize concepts in plain languageCompare strategies side-by-sideGenerate checklists and planning questionsTurn notes into a presentationCreate “what if” scenario promptsThat can help you see possibilities faster. But seeing possibilities is not the same as choosing wisely.How to Use AI With a Financial Advisor: Let AI Raise Your Questions, Not Replace Your CounselOne of the best uses of AI is preparation. You can ask it:“What questions should I ask my advisor about retirement?”“What are common blind spots in tax planning?”“What are the tradeoffs of paying off debt versus investing?”“What does it mean to reduce drawdown?”Then you bring those questions to a real conversation with a professional who understands context.Used this way, AI can help you show up better. That’s very different than AI taking over.ChatGPT Financial Advice and the Biggest Risk: It Doesn’t Know What’s True—It Knows What’s RepeatedOne thing we’ve noticed quickly: AI tools learn from what’s out there on the internet, and they don’t always know what is true versus what is simply popular.Sometimes things look like “truth” because they’re repeated endlessly.That matters in money decisions, because repetition isn’t accuracy—and it’s definitely not wisdom.So if you’re asking, “Can you trust AI for financial advice?” the answer depends on how you use it.Can You Trust AI for Financial Advice? A Simple FrameworkHere’s a practical way to think about trust:Trust AI to organize information.Trust AI to help you generate questions.Don’t trust AI to carry your responsibility.Don’t trust AI to know your full story—your fears, habits, values, and family dynamics.AI can be a strong assistant. It’s not a wise authority.Robo-advisor vs Financial Advisor: Why Optimization Isn’t the Same as GuidanceRobo-advisors have been around for years. They can be helpful for automating portfolio allocation and rebalancing.But the question isn’t whether robo-advisor vs financial advisor is better in theory. The question is: what do you actually need?Most people don’t struggle because they lack a portfolio. They struggle because when real life hits—fear, uncertainty, loss, family conflict—they stop making consistent decisions.Money decisions are never just math decisions. They’re human decisions.And real guidance isn’t just optimization. It’s interpretation, coaching, and sometimes even protection from your own impulse.AI and Behavioral Finance Coaching: The Moment Emotion Enters, the Math Isn’t EnoughA perfect example came up in our conversation.Someone left an advisor because they felt dismissed emotionally. The message they kept hearing was, “Don’t worry.” But they were worried.So the plan was adjusted to minimize drawdown—the goal was reducing the size of losses during downturns. That created more peace.Then the market rose strongly, and the question became: “Why am I not up as much as the S&P 500?”That’s a human moment. It’s normal. It also reveals the deeper truth: we often want safety and maximum upside at the same time.An AI tool can explain that tradeoff intellectually. But the real work is helping a person reconnect their decisions to their values and expectations—and then stay consistent under stress.That’s where AI vs human financial advisor becomes obvious. The issue isn’t intelligence. The issue is integration.Roth Conversions and the Problem With “Perfect Math”: You Have to Know the Future (And You Don’t)Roth conversions are a great example of why financial decisions can’t be reduced to formulas.Whether a Roth conversion is “best” depends on factors like:Future tax ratesYour income pathYour withdrawal timingAnd how long you’ll liveMany financial models require assumptions about the future that cannot be known. AI can run scenarios. It cannot remove uncertainty.It also cannot decide which risks you’re willing to carry, which outcomes matter most to you, and how your family should prepare if life doesn’t go as modeled....
The “Billion-Dollar Asset” That Still Had to Be SoldA story Bruce shares in our retirement class teaching always stops people in their tracks.A family inherited an NFL team worth just under a billion dollars. The asset was valuable. The legacy was real. But the planning wasn’t there. When estate taxes came due, the heirs didn’t have the liquidity to pay the bill. And because the wealth was tied up in an illiquid asset, they had to sell the team.https://www.youtube.com/live/6lCgo4y3LYsMost families will never own an NFL franchise. But plenty of families do own a business, a portfolio of real estate, land that’s been in the family for generations, or investments that look substantial on paper but aren’t easy to convert into cash quickly.And that’s where this topic becomes personal: if you don’t plan ahead, your family may be forced into decisions you never intended—simply to satisfy a tax obligation.This is why we’re talking about how to avoid estate tax legally—so your wealth can serve your heirs and your purpose, not become a burden or a fire sale.The “Billion-Dollar Asset” That Still Had to Be SoldWhat You’ll Learn About How to Avoid Estate Tax LegallyThe Practical Building Blocks of Estate Tax PlanningEstate Tax vs Inheritance Tax Difference: Start With the Right DefinitionsFederal Estate Tax Exemption 2026 and Why the Rules Don’t Stay PutEstate Tax Exemption 2025 vs 2026: Timing MattersEstate Tax Rate 40 Percent: The “One-Time Loss” That Creates Long-Term DamageWhy Do Estate Tax Planning Strategies Matter Even If You’re Under the Exemption Today?Estate Planning for Married Couples vs Surviving Spouse: The Quiet ShiftHow to Avoid Estate Tax Legally With Annual GiftingDo I Have to Report Gifts Under 19,000?When Do You Have to File Form 709 Gift Tax Return?Lifetime Gift Tax Exemption 2026: Larger Gifts and Long-Term TrackingGiving With Warm Hands: Why Legacy Planning Is Bigger Than Tax PlanningEstate Liquidity Planning: What Happens if an Estate Is Mostly Real Estate and Taxes Are Due?How Can Life Insurance Provide Liquidity for Estate Taxes?Irrevocable Trust Estate Planning StrategiesHow to Avoid Estate Tax Legally: Life Insurance for Banking vs Life Insurance for Estate Tax529 Plan Superfunding: Gifting to Reduce Estate Size (and the Control Question)The Most Important Takeaway on How to Avoid Estate Tax LegallyListen to the Full Episode on How to Avoid Estate Tax LegallyBook A Strategy CallFAQWhat is the difference between estate tax and inheritance tax?How does the estate tax exemption work?Should I do estate tax planning if I’m under the exemption today?What is the annual gift tax exclusion?Do I have to report gifts under the gift tax exclusion?When do you have to file Form 709?What happens if an estate is mostly real estate and taxes are due?How can life insurance provide liquidity for estate taxes?Which states have estate or inheritance taxes?What You’ll Learn About How to Avoid Estate Tax LegallyIf you’ve ever wondered, “Will my legacy go to my family…or to the IRS?” you’re asking the right question.In this blog, we’re going to walk you through the core ideas from our podcast episode on estate and inheritance taxes—what they are, how exemptions work, why the rules change, and what families can do now to protect generational wealth.You’ll learn:The estate tax vs inheritance tax difference (and why it matters)How the federal estate tax exemption 2026 conversation impacts planning todayWhy a married couple’s plan can change dramatically when one spouse diesHow annual gifting works (and why people confuse it)When Form 709 may come into playWhy estate liquidity planning can be the difference between preserving an asset and losing itHow life insurance and trusts are commonly used to create options and controlQuick note: we’re not attorneys. We sit in these meetings with attorneys. We collaborate with estate planning professionals constantly. Our goal is to give you a clear framework so you can make wise decisions and ask better questions with your CPA and attorney.The Practical Building Blocks of Estate Tax PlanningEstate Tax vs Inheritance Tax Difference: Start With the Right DefinitionsOne of the biggest sources of confusion we see is people using “estate tax” and “inheritance tax” like they’re interchangeable. They’re not.Here’s the simple distinction:Estate taxes are settled by the estate. The money comes out of the estate before everything is fully distributed.Inheritance taxes are settled by the beneficiaries. The tax bill is tied to what they receive.There’s also the state-level reality: not every state has inheritance tax, and state estate taxes can be entirely different from federal rules. That’s why one of the first questions we encourage families to answer is: “Which taxes apply in my state, and which apply federally?”When you get the definitions right, you avoid planning in the wrong direction.Federal Estate Tax Exemption 2026 and Why the Rules Don’t Stay PutWhen we recorded this episode, we were in December 2025, and Congress had just changed a tax bill that was expected to sunset at the start of 2026. That shift is a perfect example of why families can’t build a legacy plan on the assumption that today’s rules will remain tomorrow’s rules.Here’s what matters more than any single number: tax law can change quickly, and thresholds can move.That’s why planning is less about guessing the future and more about building a structure that is resilient no matter what Congress does next.Estate Tax Exemption 2025 vs 2026: Timing MattersA detail that surprises many families is that timing can change what exemption applies. If someone passes away in one year, that year’s rules apply. If they pass away the next year, the next year’s exemption applies.We don’t control the timing of life. But we can control the readiness of our plan.Estate Tax Rate 40 Percent: The “One-Time Loss” That Creates Long-Term DamageA federal estate tax hit can be significant. In our conversation, we referenced how quickly the dollars add up when large estates exceed the exemption threshold.But the bigger point we want you to see is this:It’s not just the dollars paid in tax once.It’s the generational opportunity cost of losing that capital.When your family loses money to unnecessary taxes, your family also loses what that money could have produced across decades:businesses that could have been startedreal estate acquisitions that could have created cash floweducation and training that could have expanded a child’s capacityfamily philanthropy that could have multiplied impacteconomic stability that could have protected future generationsBruce tells clients: when the money is gone, you can’t make money on that money anymore. That’s not just a financial statement. It’s a legacy statement.Why Do Estate Tax Planning Strategies Matter Even If You’re Under the Exemption Today?This is where most families get lulled to sleep. They see a high exemption and think, “We don’t need to worry about estate taxes.”Two realities can make that assumption dangerous:Exemptions can changeYour plan changes when one spouse diesEstate Planning for Married Couples vs Surviving Spouse: The Quiet ShiftEven if you don’t consider yourself “ultra-wealthy,” your planning needs to account for the fact that most couples will not pass away at the same time.A couple may look comfortably under a combined exemption threshold—then one spouse dies and the surviving spouse’s position changes. Planning that felt safe becomes exposed.We see this across many areas of tax planning, not just estate taxes. The financial world often treats “married” and “single” very differently. That’s why it’s so important to build your plan while you still have options, flexibility, and time.How to Avoid Estate Tax Legally With Annual GiftingOne of the simplest tools families can use is consistent, intentional gifting.In our episode, we talked about an annual gifting amount of $19,000 per person, per recipient, per year. The specific number can change over time, so always confirm the current annual exclusion with your CPA. But the concept is what matters.Here’s why annual gifting is so powerful:It reduces the size of your estate over timeIt can move assets into the next generation in a planned wayIt can be used to build capability, not entitlement—if you pair it with purpose and guidanceDo I Have to Report Gifts Under 19,000?In many situations, gifts under the annual exclusion amount don’t require filing a gift tax return. That’s why families like it: it’s simple and consistent.Where it gets complicated is when you go above the annual threshold.When Do You Have to File Form 709 Gift Tax Return?If you exceed the annual exclusion amount, you may need to file a gift tax return (often IRS Form 709). Filing doesn’t necessarily mean you owe tax immediately. It can mean the gift is tracked against lifetime gifting limits. Your CPA is the right person to guide you on the reporting mechanics for your situation.The takeaway: gifting can be one of the cleanest ways to reduce your estate—especially when you do it proactively and consistently.Lifetime Gift Tax Exemption 2026: Larger Gifts and Long-Term TrackingBeyond annual gifting, there is typically a lifetime gifting framework that tracks larger transfers.This is where families often say, “I’m confused,” and they’re not alone.The important part isn’t memorizing every detail—it’s understanding the two-tier structure:annual gifting can be simple and repeatablelarger gifts may require reporting and coordination with lifetime limitsAgain, this is why we encourage families to coordinate with their CPA and estate planning attorney....
Bruce said something on the show that stuck with me because it’s so honest:Everyone thinks they’re an aggressive investor… until they lose money.And it’s true. Most people don’t even realize the biggest financial planning mistakes they’re making until the moment something “unexpected” happens: a market drop, a job change, a medical curveball, an opportunity they can’t jump on because their money is locked away.https://www.youtube.com/live/wp4PzmsvzFQBruce also joked that when people go to casinos, nobody ever admits they lost. They either “won” or “broke even.” But those crystal chandeliers weren’t paid for by winners.That’s exactly what happens in real life with money. In the good years, we feel smart. In the up markets, we feel confident. And when everyone around us is sharing their “wins,” it’s easy to believe the biggest risk is simply not being invested enough.But then the market drops. A business hits a slow season. A medical issue shows up. Interest rates shift. Taxes rise. Or the opportunity you’ve been praying for appears—and your cash is locked up, waiting on someone else’s permission.That’s what today’s conversation is about: the sneaky, everyday financial planning mistakes that create real risk—often more than the stock market ever will.What Most Financial Planning Mistakes Really Look LikeFinancial Planning Mistakes Start With Misunderstanding “Risk”Risk tolerance vs risk capacity (and why it matters)Financial Planning Mistakes: Chasing Returns vs Long-Term Financial SecurityThe hidden cost of FOMOThe Safety, Liquidity, and Growth FrameworkHow to balance safety, liquidity, and growth in a portfolioLiquidity Risk in Financial Planning: Locking Money Away Without Realizing ItFinancial Planning Mistakes: Outsourcing Control and Financial Thinking1) Relying on assumptions instead of strategy2) Giving up access and permissionRetirement Planning Mistakes: Why the “Way Down the Mountain” Is HarderWhat is sequence of returns risk in retirement?How to reduce sequence of returns riskTax Risk: Required Minimum Distributions and the Inherited IRA 10-Year RuleRequired minimum distributions tax planningInherited IRA 10-year rule taxes (SECURE Act)How to Minimize Risk: Whole Life Insurance Cash Value - Liquidityand Legacy ProtectionWhole life insurance as a volatility bufferA personal note on why this mattersWhat to Remember and What to Do NextListen to the Full Episode on Financial Planning MistakesBook A Strategy CallFAQWhat are the most common financial planning mistakes?What is sequence of returns risk in retirement?How do you define risk tolerance vs risk capacity?Why is liquidity important in financial planning?How do required minimum distributions create tax risk?How does the inherited IRA 10-year rule affect heirs?Can whole life insurance reduce portfolio risk?What Most Financial Planning Mistakes Really Look LikeWhen most people hear the word “risk,” they immediately think of market volatility. The stock market goes up and down. Inflation eats purchasing power. Taxes change. Interest rates rise.Those are real risks. But they’re not the only risks—and for many families, they’re not even the biggest ones.Some of the most risky moves in financial planning are the ones that feel “normal”:Chasing returns because you don’t want to miss outLocking money away without liquidityRelying on assumptions instead of strategyOutsourcing too much control and decision-makingIgnoring tax risk until required minimum distributions force your handBuilding retirement plans without accounting for sequence of returns riskThis post is designed to help you identify the financial planning mistakes that quietly erode your financial strength. You’ll also learn a simple framework—safety, liquidity, and growth—that makes decisions clearer, and helps you reduce risk in ways most financial conversations never touch.If you want more control, more flexibility, and more confidence in your future, this is for you.Financial Planning Mistakes Start With Misunderstanding “Risk”Risk is a subjective word. What feels risky to you might feel normal to your friend, your neighbor, or even your spouse. People in the same family can interpret “risk” in completely different ways.That’s why generic risk questionnaires often miss the point. They may score your “risk tolerance,” but they can’t fully capture how you’ll actually respond when real money is on the line and emotions show up.One of the clearest ways to surface what risk truly means to you is to compare two types of risk most people don’t realize they carry:The risk of losing money (or seeing your account value drop)The risk of missing upside (watching the market rise while your portfolio lags)Here’s a simple question that cuts through the noise:If the stock market goes up 20% and you only go up 5%, does that make you feel worse than if the market goes down 20% and you go down 20%—but you could have only gone down 5%?Both matter. Both affect behavior. Both can lead to costly decisions—especially if your plan was built without understanding which kind of risk you actually can live with.Risk tolerance vs risk capacity (and why it matters)Another layer that’s often overlooked is the difference between risk tolerance and risk capacity.Risk tolerance is emotional. It’s how you feel.Risk capacity is structural. It’s whether you can absorb a financial hit without changing your life, your timeline, or your goals.Someone might feel “aggressive” in theory—but if they can’t open their investment statements during a downturn, that’s a signal. If a portfolio drop would force them to delay retirement, sell assets at the wrong time, or sacrifice lifestyle essentials, that’s a signal too.Many financial planning mistakes happen when confidence is treated as a plan.Financial Planning Mistakes: Chasing Returns vs Long-Term Financial SecurityOne of the most common risky financial planning moves is chasing returns without thinking through the cost of the downside.It’s easy to get pulled into what looks like success—especially when you’re only seeing the highlight reel.People talk about the big win:The stock that explodedThe crypto runThe rental property that doubledThe syndication that paid great returns for a few yearsWhat you don’t hear as often is the full story: the losses, the near-misses, the stress, the deals that didn’t work, the years where returns were negative, or the moment one major downturn wiped out a decade of progress.There’s also a common belief that causes people to justify risky moves:“More risk means higher returns.”That’s not what higher risk means. Higher risk means higher potential for loss. Sometimes you win big. Sometimes you lose big. And it only takes one major loss to erase years of steady gains.This is why chasing returns vs long-term financial security is such an important conversation. The goal isn’t to catch every upside. The goal is to build a system that lets you keep moving forward—regardless of what the economy does.The hidden cost of FOMOFear of missing out isn’t just emotional—it changes behavior.It can push you to:Abandon a sound plan for a trendy oneOverconcentrate in one asset classTake on leverage you wouldn’t normally takeMove money too quickly without understanding what you’re buyingFOMO convinces you that the risk is “not being in.” But sometimes the real risk is being in something you don’t understand, can’t control, and can’t exit cleanly.The Safety, Liquidity, and Growth FrameworkThere are three primary attributes that matter in every financial decision:SafetyLiquidityGrowthMost people have been taught to focus almost exclusively on growth. That’s why financial planning mistakes are so common—because growth is only one part of the equation.You generally can’t maximize all three attributes in one place. Each asset carries trade-offs.That doesn’t mean you avoid growth. It means you assign each bucket of money a purpose—and then choose the asset that does that job best.How to balance safety, liquidity, and growth in a portfolioA better question than “What’s the best investment?” is:What is this money supposed to do?Different dollars have different jobs.Some dollars are meant to be stable and accessible (emergency reserves, opportunity funds, tax buffers).Some dollars can take on long-term growth risk (true long-term capital).Some dollars are meant to create income, serve as a legacy tool, or act as a stability anchor.When every dollar is forced into a growth-only mindset, families create unnecessary vulnerability.Liquidity Risk in Financial Planning: Locking Money Away Without Realizing ItLiquidity risk is one of the most underestimated financial planning mistakes.It shows up when you can’t access your money without:penaltiesapprovalsdelaysforced timingmarket lossesgatekeepersIt might be your money, but it isn’t in your control.This can happen in many places:retirement accounts with early withdrawal penaltiesstrategies that require “qualifying” to access cashequity trapped in assets that can’t be sold quicklyproducts that take months (or longer) to unwindinvestments that require perfect conditions to exitA real example: someone retiring from a school system is offered a pension decision—take a higher monthly payment, or reduce it to take a lump sum. The lump sum sounds like “freedom,” but if it must be rolled to an IRA and the person is under 59½, access is restricted without penalty.That’s a liquidity problem. And it’s a control problem.“Locking money away without liquidity” is often disguised as “being responsible”Many people make decisions that look responsible on paper—max out a
A Hospital Room Reminder About What Really MattersWhen Bruce recorded this episode, I was in the hospital.He carried the podcast solo while I was headed into yet another surgery connected to pregnancy complications—a storyline some of you know has been part of our family’s journey for years.https://www.youtube.com/live/Fbq412_k_mUThat day was a harsh reminder: life is fragile, the future is never guaranteed, and your family’s financial stability cannot depend on “hoping it all works out.”It has to be built on purpose.And that’s exactly what cash flow vs accumulation is really about: not numbers on a statement, but whether the people you love will be equipped, protected, and provided for—no matter what happens to you.A Hospital Room Reminder About What Really MattersWhy Cash Flow vs Accumulation Matters More Than a NumberWhy Cash Flow vs Accumulation: How to Build Multigenerational Wealth Matters NowWhat Is the Difference Between Cash Flow and Accumulation Investing?How to Shift from Accumulation to Cash Flow in Personal FinanceHow to Manage Cash Flow Like a Business in Your Personal FinancesHow to Create a Personal Cash Flow Strategy That Supports Your LifeCash Flow vs Accumulation: How to Build Multigenerational Wealth in PracticeBest Cash Flowing Assets for Families and Business OwnersShould You Use a HELOC to Fund Life Insurance Premiums and Cash Flow Investments?From a Pile of Money to a Living Financial SystemGo Deeper With the Full Cash Flow vs Accumulation EpisodeBook A Strategy CallFAQ – Cash Flow vs Accumulation and Multigenerational WealthWhat is the difference between cash flow and accumulation investing?How can I shift from accumulation to cash flow in my personal finances?How do I create a personal cash flow strategy that supports my lifestyle?What are the best cash flowing assets for families and business owners?How can focusing on cash flow vs accumulation help build multigenerational wealth?Why Cash Flow vs Accumulation Matters More Than a NumberMost financial conversations revolve around a number.“How much do I need to retire?”“What should my net worth be at this age?”“What’s my freedom number?”Those questions all assume one thing: that a bigger pile of assets automatically equals security. But it doesn’t. A big balance that doesn’t produce reliable cash flow can disappear quickly. You start selling assets, paying taxes, and hoping the market cooperates. That’s not peace of mind. That’s pressure.In this article, I want to walk you through a different way of thinking: cash flow vs accumulation and how to build multigenerational wealth with a system instead of a guess.You’ll see:What is the difference between cash flow and accumulation investing in real lifeHow to shift from accumulation to cash flow in your personal financesHow to manage cash flow like a business in your personal economyThe role of cash flowing assets, Infinite Banking, and trusts in building multigenerational wealthHow Secure Act 2.0 and current tax rules affect inherited accounts and cash flowMy goal is not to make you feel behind, but to help you feel equipped. You can design a personal cash flow strategy that supports your lifestyle now and continues to bless your family long after you’re gone.Why Cash Flow vs Accumulation: How to Build Multigenerational Wealth Matters NowAt the simplest level, accumulation is about growing a balance; cash flow is about growing an income stream.Most people are taught the accumulation mindset from day one. Work hard, spend less than you make, and stash the difference in a 401(k), IRA, or brokerage account. You watch the balance grow over time and hope it’s enough.Cash flow asks a different set of questions. Instead of “How much do I have?” it asks, “What is this money doing? How much sustainable income does it produce? How easily can my family access it? And how long will it last?”Accumulation is about mass; cash flow is about motion. Mass can look impressive on paper. Motion is what pays the bills, funds opportunities, and supports your heirs without forcing them to sell assets at the worst possible time.When you start thinking this way, your focus shifts from chasing the biggest number to designing the strongest system.What Is the Difference Between Cash Flow and Accumulation Investing?Let’s make this practical.Accumulation investing looks like this: your paycheck comes in, your bills go out, and whatever is left—if anything—gets swept into a savings account, retirement plan, or investment account. You might reinvest dividends automatically, but you’re mostly watching the line go up and down on a graph and hoping the long-term trend is favorable.Cash flow investing is more intentional. You still earn income, still pay expenses, but you do one crucial thing differently: you give that surplus a job. Instead of leaving it to drift, you send it into assets that are designed to pay you on a regular basis.That might be a rental property, a share in a business, a private lending fund, a dividend-paying stock portfolio, or a policy loan strategy built on whole life insurance. The key is that these assets put money back into your personal economy as a dependable stream, not just a fluctuating account value.Accumulation is “I hope this is enough someday.”Cash flow is “I know what this produces every month, and I can plan around it.”How to Shift from Accumulation to Cash Flow in Personal FinanceThe shift doesn’t happen with one dramatic move; it happens through a series of decisions.The first step is awareness. You need to see your personal economy the way a CFO sees a business. That means tracking not just your balance, but your flow. How much truly comes in? Where exactly does it go? What is the consistent surplus?Once you know the surplus, you can stop letting it evaporate. This is where Bruce’s idea of a Wealth Coordination Account becomes powerful. Instead of leaving extra money in the same checking account that pays your groceries and subscriptions, you move it to a separate, dedicated account.That account becomes the home base for your cash flow strategy. It’s where you hold cash temporarily while you decide: do we pay down a debt that’s draining us? Do we fund a life insurance premium that will expand our long-term options? Do we step into a strategic rental, a business partnership, or a dividend-focused portfolio?Shifting from accumulation to cash flow is less about wild new investments and more about refusing to let surplus be accidental. You become intentional about directing it toward assets that feed you back.How to Manage Cash Flow Like a Business in Your Personal FinancesBruce shared a simple but powerful idea:Run your personal economy the way a healthy business runs its economy.A good business watches:Revenue inExpenses outProfit (cash flow)How quickly profit is redeployed to either increase revenue or decrease expensesYou can do the same at home.Track your cash flow clearlyDon’t just “check your balance.” Know exactly what’s coming in, what’s going out, and what’s left.Increase income where you canSide business, consulting, a raise, better pricing in your current business—anything that adds more revenue to your personal economy.Decrease unnecessary expensesLook at both:Discretionary spending (the “nice to haves”)Non-discretionary spending (insurance, utilities, groceries) where you can shop, renegotiate, or restructure.Capture the surplus in a separate “Wealth Coordination Account”This is something Bruce and I teach often:Create a separate account for excess cash flowDon’t let it disappear into your normal spendingUse this account to fund your cash flow strategy, pay premiums, and invest in new opportunitiesThis is the heart of cash flow planning—directing every dollar on purpose.How to Create a Personal Cash Flow Strategy That Supports Your LifeA personal cash flow strategy isn’t just a budget. It’s a design for how money moves through your life:Income sourcesW-2 incomeBusiness incomeRental incomeDividends and distributionsCore expensesLifestyle (home, food, transportation, education)TaxesDebt paymentsSurplus (profit)This is what flows into your Wealth Coordination AccountRedeployment planYou decide in advance:What percentage goes to debt reductionWhat percentage goes to cash flowing assetsWhat percentage goes to premiums on your whole life policiesWhat percentage stays liquid for opportunitiesThis is how you manage your cash flow instead of reacting to it. Over time, this system builds stability for you and creates a foundation for multigenerational wealth planning.Cash Flow vs Accumulation: How to Build Multigenerational Wealth in PracticeSo how do we make cash flow vs accumulation truly multigenerational?Bruce and his wife use a simple repeatable framework:Cash flowing assets (businesses, rentals, funds) send income into a Wealth Coordination Account.That account pays premiums for permanent life insurance policies.As cash value grows, they borrow against policies to purchase more cash flowing investments.The new cash flow goes back to:Repay policy loansRebuild the Wealth Coordination AccountFund additional opportunitiesRinse and repeat.On the legacy side:Trusts are structured so that death benefits and cash flowing assets pass in an organized, tax-aware way to nieces, nephews, and charities.The trust language gives guidance and guardrails for how the next generation should use policy loans, pay them back, and take out new policies on their own lives and their children’s lives.This is how building generational wealth with cash flow becomes a repeatable family system, not just a one-time event....
The Couple With $8.5 Million… and One Salad“Bruce, I’m afraid we’re going to run out of money.”He had over $8.5 million across different accounts. They were in their early 70s. On paper, they were far ahead of where most people ever get.https://www.youtube.com/live/L4phmdaJydwBut his fear was so real that when they went out to dinner, his wife shared a salad instead of ordering her own—because he was afraid they “couldn’t afford” it.This is what we see over and over again.People obsess over the question “how much do I need to retire?”They chase a number.They hit that number—or get close to it.And still feel anxious, fragile, and uncertain.The problem isn’t just the money.The problem is the model.The Couple With $8.5 Million… and One SaladWhy “How Much Do I Need to Retire?” Is the Wrong First QuestionHow Much Do I Need to Retire? Why That Question Is MisleadingRetirement Cash Flow vs Nest Egg: What You Really NeedSequence of Return Risk in Retirement: Why Timing Matters More Than AveragesBuilding a Retirement Buffer Account to Protect Your PortfolioHow a buffer account protects your retirement portfolio:The LIFE Acronym for Retirement Planning: Liquid, Income, Flexible, EstateProblems With Traditional Retirement Planning and the 4 Percent RuleRedefining Retirement: Gradual Retirement vs Traditional “Out of Service”Cash-Flowing Assets and Alternative Investments for Retirement Cash FlowUsing Whole Life Insurance in Retirement for Guarantees and FlexibilityHow Much Do I Need to Retire? Rethinking the Real QuestionListen to the Full Episode on How Much Do I Need to RetireBook A Strategy CallFAQ: How Much Do I Need to Retire?How much do I need to retire comfortably?How do I know if I have enough to retire?What is sequence of return risk in retirement?What is a retirement buffer account?Is whole life insurance good for retirement income?How can I create guaranteed income in retirement without a pension?How much income do I need in retirement each month?How can my retirement plan serve future generations?Why “How Much Do I Need to Retire?” Is the Wrong First QuestionIf you’ve ever typed how much do I need to retire or how much money do I need to retire into Google, you’re not alone. The financial industry has trained us to believe that the right “number” equals security.But that question is incomplete.It ignores:How long you’ll liveHow much you’ll actually spendHow many emergencies will show upWhat taxes and inflation will doWhat sequence of returns your investments will experienceIn this article, Bruce and I will help you:Understand why “how much do I need to retire” is the wrong question to start withSee the difference between retirement cash flow vs nest eggGrasp sequence of return risk in retirement with simple examplesLearn how a retirement buffer account can protect youUse the LIFE acronym for retirement planning (Liquid, Income, Flexible, Estate)Explore cash flowing assets, alternative investments, and whole life insurance in retirementRethink retirement itself—from an “out of service” event to a purposeful, gradual transitionMy goal is to empower you to take control of your financial life with clarity, not fear.How Much Do I Need to Retire? Why That Question Is MisleadingThe classic commercial asked, “What’s your number?” People walked around carrying a big orange figure that supposedly represented what they needed to retire.Here’s the problem:That number assumes:A set rate of returnA set withdrawal rateNo major disruptionsAnd that you won’t touch your principalBut real life is not a straight-line projection.When you ask how much do I need to retire, you’re usually really asking:“How can I have enough cash flow for as long as I’m alive, without living in fear?”The issue is not just how much you have—it’s how that wealth behaves under stress and how it converts into dependable income.Retirement Cash Flow vs Nest Egg: What You Really NeedTraditional planning focuses on accumulation: “If I can just get to $X million, I’ll be fine.”But what you actually live on is cash flow, not the size of your account statement.You need to know:How much income do I need in retirement each month?Which part of that income is guaranteed and which part is variableHow that income will behave if markets drop or inflation spikesIf you have $2 million but no idea how to turn that into reliable, sustainable cash flow, you will feel fragile. If you have a mix of guaranteed income in retirement plus flexible cash flowing assets, even a smaller nest egg can feel much more secure.The question isn’t just how much money do I need to retire, but how do I design cash flow that will last?Sequence of Return Risk in Retirement: Why Timing Matters More Than AveragesThe industry loves to tell you that “the market averages 10% over time.” That’s nice trivia—but it’s not how your life works.If you’re accumulating, you can ride out the ups and downs.If you’re retired and pulling money out, the sequence of returns can make or break you.Here’s a simple illustration:Start with $100,000Year 1: -20% → now you have $80,000Year 2: +20% → now you have $96,000The average return is 0% (-20 + 20 / 2).But your actual money is down $4,000.Now imagine that on top of the losses, you’re pulling out 4–6% per year to live. Suddenly, the portfolio has to recover the market loss and everything you withdrew. That’s sequence of return risk explained with examples—and why relying solely on averages is dangerous.Building a Retirement Buffer Account to Protect Your PortfolioOne of the most powerful ways to address sequence of return risk in retirement is using a retirement buffer account.The idea is simple:When markets are down, you do not take distributions from your volatile assets.Instead, you live off a separate, safe buffer of liquid capital.This buffer could be:Cash in the bankCDs or other stable vehiclesCash value in a well-designed whole life insurance policyHow a buffer account protects your retirement portfolio:It gives your market-based assets time to recoverIt reduces the risk of selling low during downturnsIt lowers emotional stress when headlines scream “market crash”You’re no longer forced to sell when everything is on sale.The LIFE Acronym for Retirement Planning: Liquid, Income, Flexible, EstateTo make this practical, we often walk clients through the LIFE acronym for retirement planning:L – LiquidHow much “15-minute money” do you need to feel comfortable? This is money you can access quickly for emergencies or peace of mind—not dependent on your cash flow plan.I – IncomeHow much income do you need each month? How much of that would you like guaranteed? This is where retirement income planning really happens.F – FlexibleThis is liquid money that’s not earmarked for emergencies or core living expenses. It’s for things like trips, special projects, and helping kids or grandkids. It’s the “I can do this without stress” bucket.E – EstateHow much do you want to leave behind, and in what form? This is where how to make your retirement plan serve future generations becomes part of the design.A well-designed mix of cash, whole life insurance, and other assets can touch every part of LIFE: Liquid, Income, Flexible, and Estate.Problems With Traditional Retirement Planning and the 4 Percent RuleTraditional planning often rests on:A withdrawal rule (4% or 5%)Market-based portfoliosHistorical averages and Monte Carlo simulationsBut as Bruce mentioned:A 100-year average doesn’t matter if you’re retired for 20 yearsInflation erodes real purchasing powerMarket volatility plus withdrawals increase fragilityFocusing only on accumulation creates emotional anxietyThis is why cash flow vs accumulation in retirement planning is such an important shift. When you’re not dependent on markets going up every year just so you can eat, your whole experience of retirement changes.Redefining Retirement: Gradual Retirement vs Traditional “Out of Service”Nelson Nash used to remind us:Retirement, by definition, means “taken out of service.”Most of us don’t want to be taken out of service; we want to stay useful, engaged, and purposeful.Instead of a hard stop at 65, consider redefining retirement as a gradual retirement vs traditional retirement:Negotiating part-time work or consultingReducing hours instead of walking away completelyStaying in the game mentally, physically, and relationallyWe’ve seen engineers move to 10 hours a week, seasoned professionals mentor younger staff, and business owners step back from daily operations while still contributing.Purposeful work, even part-time, can:Supplement your retirement incomeReduce pressure on your portfolioKeep you sharp and connectedRetirement doesn’t have to mean being benched.Cash-Flowing Assets and Alternative Investments for Retirement Cash FlowAnother powerful way to support retirement is shifting some focus from growth-only assets to cash flowing assets for retirement.Examples include:Dividend-paying stocksReal estate (direct ownership or funds)Private lendingCertain alternative investments for retirementFor accredited investors, there are a variety of alternative investments for retirement cash flow:Multifamily apartment fundsIndustrial and distribution center fundsCertain energy or infrastructure programsTechnology and telecom infrastructure (like tower or data assets)These are not guaranteed and require careful due diligence, but they’re often backed by real underlying assets and designed with yield in mind....
The Day a Cookie Business Changed How My Daughter Saw MoneyAfter watching a kid biz launch challenge our eight-year-old decided she wanted to start a cookie business.She figured out recipes, canvased the neighborhood, and delivered her first batch of cookie dough. By the end of the day, she had a stack of cash in her hand and stars in her eyes.https://www.youtube.com/live/yzjkVUl38HMThen we sat down at the table.“Okay,” I said, “you didn’t just make $100 you made $100 of income. Now we’re going to give, save, and spend.”Suddenly, that pile of money shrank. Ten dollars to giving. Forty to saving. Fifty left to spend.And right there, without a textbook or a classroom, she began to understand what real money management feels like: choices, trade-offs, and the realization that dollars follow value.That’s a picture of how to teach kids about money in real life—not as an abstract idea, but as something they can see, touch, and live.Table of ContentsThe Day a Cookie Business Changed How My Daughter Saw MoneyWhy Learning How to Teach Kids About Money Matters More Than EverHow to Teach Your Kids About Money From a Young AgeHow Early Money Experiences Shape Your Child’s Financial MindsetTeaching Kids Delayed Gratification With Money: Saving First, Spending LaterTeaching Kids About Saving and Spending: The Pain of a Bad PurchaseHow Chores and Earning Money Teach Kids ResponsibilityHelping Kids Develop a Wealth Mindset, Not a Consumer MindsetTeaching Teens About Debit Cards and Digital MoneyHow to Talk to Adult Children About Money and Financial HabitsTeaching Children Financial Literacy Is Your Job, Not the School’sHow to Teach Kids About Money in a Way That Actually SticksGo Deeper on How to Teach Kids About MoneyBook A Strategy CallFAQ: How to Teach Kids About Money (For Parents, Teens, and Adult Children)What is the best way to teach kids about money from a young age?How can I teach kids to save money and not spend it all?How do chores and earning money teach kids responsibility?How can I help my child develop a wealthy mindset, not a consumer mindset?How should I talk to my teen about debit cards and digital money?How do I talk to adult children about money habits without starting a fight?What is the three jar system for kids?Why Learning How to Teach Kids About Money Matters More Than EverWhen parents ask us how to teach kids about money, they’re not really asking about dollars and cents.They’re asking:How do I raise financially responsible kids?How do I help them avoid the money mistakes I made?How do I give my child a wealthy mindset, not a consumer mindset shaped by social media and advertising?In this article, we are going to walk with you through:How to teach your kids about money from a young ageSimple money lessons for kids that start before they earn their first dollarHow chores, jobs, and entrepreneurship help kids understand that dollars follow valueHow to teach kids about saving and spending, delayed gratification, and lifestyle choicesHow early money experiences shape your child’s financial mindset, from little kids to teens to adult childrenBy the end, you’ll have practical scripts, examples, and frameworks you can start using today—whether your kids are 6, 16, or already out of the house.How to Teach Your Kids About Money From a Young AgeIf you ask us, there is no such thing as “too early” when it comes to teaching children financial literacy.From the moment they see you tap a card at the store, they’re forming beliefs about money:Is money scarce or abundant?Is it something we talk about, or something we avoid?Does it control us, or do we steward it?We live in a world that constantly pushes kids toward consumption—commercials, YouTube, TikTok, billboards. A child who has never seen a Barbie Dream House commercial would be perfectly happy playing with pots and pans in the kitchen. The ad didn’t just sell a toy; it told them what “ happiness” should look like.If we’re not intentionally teaching kids good money habits, the culture is.That’s why the earlier you start, the more “normal” healthy money habits feel. It’s not a lecture—it’s just how our family does life.How Early Money Experiences Shape Your Child’s Financial MindsetBruce often shares how his grandparents saved ration tickets from World War II on the windowsill for decades. They washed plastic forks and cups after every big holiday meal.Those early experiences created a deep, almost subconscious scarcity mindset. Later, his parents went through the inflation of the 1970s and the loss of a family business. All of that shaped how he views risk, saving, and spending even today.Your kids are also absorbing your story right now:How you react when an unexpected bill comes inWhether you complain constantly about moneyWhether you live in chronic anxiety or quiet confidenceYou don’t have to be perfect. But you do need to be honest, consistent, and intentional. That’s how parents can model healthy money habits for their children—far more powerfully than any lecture.Teaching Kids Delayed Gratification With Money: Saving First, Spending LaterOne of the most important money habits for kids that starts before they earn their first dollar is simply this:Save first, then spend what’s left—a foundational principle of strong Cash Flow Strategies.It’s the marshmallow test with dollars. Do I eat the one marshmallow now, or wait and get two later?With our kids, we use a simple three jar system for kids: give, save, spend.10% to giving40% to saving50% to spendingWe started this when they were very young with transparent jars, so they could see money growing in each category. Anytime they earned money—from chores, business, or gifts we chose to include—we walked through the same process:Give first (generosity as a default, not an afterthought)Save second (for long-term wealth building and investing)Spend last (on wants and short-term goals)Over time, this shifted their thinking:“If I want $50 to spend, I have to earn $100.”“My savings isn’t just future spending; it’s capital for making more money.”That’s teaching kids the difference between saving and spending in a way they can feel—not just understand intellectually.Teaching Kids About Saving and Spending: The Pain of a Bad PurchaseFor one of our daughters, the biggest teacher has been buyer’s remorse.She’s our spender.She’ll get $25 and want to spend it immediately. Then, the next day, she sees something else she wants more, or realizes Christmas is coming and she wants to buy gifts for family—and that same $25 is gone.We don’t shield her from that discomfort. We want her to feel:“Every dollar I spend here is a dollar I cannot spend there.”“My choices today affect my options tomorrow.”That’s how to help your child avoid lifestyle creep and overspending later in life. It starts with small, low-stakes decisions that train their decision-making muscles long before those decisions involve cars, houses, and credit cards.How Chores and Earning Money Teach Kids ResponsibilityWe don’t pay our kids for basic chores.Chores—like cleaning your room, helping with dishes, cleaning up toys—are simply part of contributing to the family. That’s how to raise financially responsible kids and emotionally responsible kids.But we do pay for above-and-beyond work that creates extra value:Vacuuming the whole houseCleaning all the bathroomsLarger projects we’d otherwise pay someone else to doThat’s when we start teaching kids that dollars follow value. Money is the result, not the cause.Bruce grew up mowing lawns, returning baseballs at the ball field, and collecting bottles for deposit money. No one handed him an allowance; he learned that if he wanted something, he had to figure out what value he could create in the world to earn it.That’s also how chores and earning money teach kids responsibility:They recognize needs around themThey see the connection between effort, value, and incomeThey start to think entrepreneuriallyYou’re not just teaching kids about money management. You’re teaching them how to think like producers, not just consumers.Helping Kids Develop a Wealth Mindset, Not a Consumer MindsetOne of the biggest tensions today is balancing scarcity and abundance.On one side, there’s fear-based scarcity:“We can’t spend anything.”“We can never enjoy life.”“We must hoard every dollar.”On the other side, there’s consumption-based scarcity:“If I don’t buy the trip, the car, the concert, I’m missing out.”“I’m not enough unless I have more, do more, go more.”Both are fear-based.A wealth mindset says:I can enjoy life within wise limits.I choose meaningful experiences, not constant upgrades.I build a cash-flowing asset base that funds my lifestyle.This is where using Robert Kiyosaki’s Cashflow game to teach kids about money can be powerful. It shows them:Income vs ExpensesAssets vs LiabilitiesThe goal of building cash-flowing assets until passive income exceeds expensesIn other words, how to give your child a wealthy mindset not a consumer mindset—by showing them a bigger vision for money than just “get paid, then spend it.”Teaching Teens About Debit Cards and Digital MoneyToday, money is more invisible than ever.Tap your phone. Click a button. Apple Pay, Google Pay, one-click checkout—no pain, no pause, no counting cash.For teens, that can be dangerous. Teaching teens about debit cards and digital money means pulling back the curtain:Show them their bank statement regularly.Connect each purchase to the actual hours of work it took to earn it.Talk about overdrafts, fraud,...
The Day the “Emergency Fund” Met Real LifeRachel here. Many tell us the same story: “I saved the emergency fund, but I’m worried I’m losing ground to inflation and missed opportunities.”https://www.youtube.com/live/T7O8abZDKw8Because for most people, the “emergency fund” is a lonely pile of cash—stuck in a corner doing next to nothing. It feels safe, until inflation and opportunity cost quietly erode it. Today Bruce and I want to reframe that pile into something far better: emergency fund alternatives that give you liquidity and momentum.What You’ll Get From This GuideIf you’ve ever wondered how to stay liquid for the unknown without parking money in low-yield accounts, this is for you. We’ll show you how to:Design liquidity that protects your family and keeps compounding intactThink “emergency and opportunity,” not either/orDecide how much liquidity you actually needCompare storage options (banks, brokerage, HELOCs, and emergency fund alternatives like cash value life insurance)Understand policy loans, interest, IRR, and why control and flexibility often beat chasing the “best rate”By the end, you’ll have a practical blueprint to keep cash ready for life’s surprises—without stalling your long-term growth.The Day the “Emergency Fund” Met Real LifeWhat You’ll Get From This Guide1) Why Most People Misunderstand “Emergency Funds”Emergency Fund Alternatives vs. Cash-in-the-Bank2) How Much Liquidity Do You Actually Need?Emergency Fund Alternatives for Real Estate Investors3) Liquidity from Cash-Flowing Assets4) Where to Store Liquidity: A Practical Comparison5) Cash Value as an Emergency–Opportunity FundEmergency Fund Alternatives Using Whole Life Insurance6) “But What About Loan Rates vs. Policy IRR?”7) Real Estate, HELOCs, and Policy Loans—How They Compare8) Early-Year Liquidity & Design Reality9) The Two Big Mindset ShiftsEmergency Fund Alternatives That Keep You in Control10) Implementation Steps You Can Start This WeekWhy This MattersListen In and Go DeeperFAQWhat’s the best place to keep an emergency fund?Are whole life policies good emergency fund alternatives?How much liquidity should real estate investors keep?Do whole life policy loans hurt compounding?Policy loan rate vs. policy IRR—what matters most?HELOC or whole life policy loan for emergencies?Book A Strategy Call1) Why Most People Misunderstand “Emergency Funds”Most picture a rainy-day stash: a fixed dollar amount “just in case.” The problem? That mindset narrows your field of vision to only bad events. You end up over-saving in idle cash, under-preparing for real opportunities, and missing compound growth. The better frame is liquidity for emergencies and opportunities—capital that can pivot quickly, without losing momentum.Emergency Fund Alternatives vs. Cash-in-the-BankSavings accounts provide easy access but pay little, expose you to inflation, and interrupt compounding when you withdraw. Emergency fund alternatives aim to keep liquidity and let your money continue working.2) How Much Liquidity Do You Actually Need?Rules of thumb (3–6 months) don't account for your real situation: expenses, income volatility, business ownership, real estate cycles, and your emotional comfort. Bruce and I coach clients to answer three questions:Cash flow cushion: If your income paused, how long until you’re back on track?Asset mix & access: Where is your capital now, and how liquid is it (including taxes/penalties)?Personal margin: What amount helps you sleep at night without freezing progress?The right number blends math and emotion. Peace of mind matters because you’ll only stick with a plan you believe in.Emergency Fund Alternatives for Real Estate InvestorsGreat operators earmark a percent of rents for vacancies, repairs, and cap-ex—plus a broader, flexible reserve. Emergency fund alternatives make that reserve productive while keeping it accessible.3) Liquidity from Cash-Flowing AssetsOne overlooked “emergency fund” is consistent cash flow. If assets deposit $5K–$20K/mo. into your checking account regardless of your job, you may need less static cash. Let the monthly stream cover life’s bumps—while your capital base keeps compounding.Cash flow accumulates → periodically deploy to premium (more on that next)Short-term bank buffer exists, but money doesn’t linger thereYou stay positioned for both emergencies and deals4) Where to Store Liquidity: A Practical ComparisonVehicleLiquidityGrowth/DragTaxes on AccessProsConsBank savings/HYSAInstantLow; inflation dragNo capital gains on principalSimplicity, FDICOpportunity cost; interrupts compoundingBrokerage (cash/short-term)High–moderateVariesPossible gains taxesOptional yieldMarket risk; sale can trigger taxesHELOCOn-demand (if open)House appreciates regardlessLoan (not income)Flexible; common for investorsBank approval; can be frozenCash Value Whole Life3–5 days via policy loansUninterrupted compoundingLoan (not income)Control, guarantees, death benefitMust qualify; early-year liquidity is lowerBottom line: Banks are fine for swipe-ready cash. But for meaningful reserves, emergency fund alternatives that preserve compounding and add optionality often fit better.5) Cash Value as an Emergency–Opportunity FundThis is where Infinite Banking principles shine. Premium dollars build cash value (guaranteed growth + potential dividends) and a rising death benefit. When you need liquidity, you borrow against cash value. Your cash value keeps compounding uninterrupted while the insurer’s general fund provides the loan.Result: Capital keeps working; you gain flexibilityMindset: Be both the producer and the banker in your lifeGovernance: Treat loans like a bank would—repay with intention to restore capacityEmergency Fund Alternatives Using Whole Life InsuranceLiquidity in days (not months)Access via loan documents—not a bank underwriterIf you pass away with a loan outstanding, it’s simply deducted from the death benefit; your heirs still receive the net6) “But What About Loan Rates vs. Policy IRR?”Bruce said it well: I care less about a single rate and more about the system—control, flexibility, and volume of interest over time.IRR reflects long-term, policywide performance.Loan rate is what you pay while capital continues compounding inside the policy.Volume matters: The faster you repay, the less interest volume you pay—at the same rate.Meanwhile, rising death benefits and dividends work in your favor.Chasing the perfect spread can stop you from using a system designed to keep your compounding intact and your options open.7) Real Estate, HELOCs, and Policy Loans—How They CompareA helpful analogy: a policy loan works like a HELOC on your house—the property can keep appreciating whether a lien exists or not. With cash value, your “property” is the policy: growth continues by contract, and you place a lien to access cash. Differences:Access: Policy loans are paperwork-simple; HELOCs require bank re-approval and can be frozen.Speed: Policies often fund in 3–5 business days; HELOC timing varies.Control: With a policy, you set repayment terms; with banks, they do.For investors, combining a small bank buffer, a HELOC, and cash value creates layers of redundancy—plus uninterrupted compounding.8) Early-Year Liquidity & Design RealityHonest trade-off: in the first year(s), you won’t have access to 100% of premium dollars. That early drag buys you guarantees, long-term compounding, and a growing death benefit. Design matters (base + paid-up additions) and expectations matter. Ask: Do I really need every dollar back in 30 days? Most don’t. By years 3–4, well-designed policies are commonly close to dollar-for-dollar access on new premium—and rising.9) The Two Big Mindset ShiftsFrom Emergency to Emergency–OpportunityStop saving only for the worst. Start storing capital that can respond to anything—repairs, vacancies, investments, giving, tuition, tithing, trips.From Saver to BankerDon’t just hold capital; govern it. Design rules. Repay loans. Value your capital at least as much as a bank would. This shifts you from scarcity to stewardship.Emergency Fund Alternatives That Keep You in ControlThe aim isn’t a magic product; it’s a governed system that preserves compounding, widens options, and serves your family for decades.10) Implementation Steps You Can Start This WeekClarify your true liquidity need. Calculate 90–180 days of net cash flow needs, not just expenses.Segment reserves: Keep a thin swipe-ready bank buffer; move the rest to emergency fund alternatives (e.g., cash value).Document loan rules: When you borrow, how will you repay? From what cash flow? On what rhythm?Automate funding: Set recurring transfers to build capital consistently.Review quarterly: Check buffer size, upcoming premiums/PUAs, deal pipeline, and family needs.Think generationally: Policies on multiple family members expand access, diversify insurability, and strengthen your long-term plan.Why This MattersYour “emergency fund” shouldn’t be a deadweight expense. With emergency fund alternatives, you can keep liquidity, protect your family, and maintain uninterrupted compounding. Cash-flowing assets provide monthly cushion. Cash value provides controlled access, contractual growth, and a rising death benefit. Together, they create a resilient system that handles storms and seizes sunshine.Listen In and Go DeeperWant the full conversation—including examples, loan mechanics, and our candid takes on rates, IRR, and real-world trade-offs? Listen to the podcast episode on Emergency Fund Alternatives to hear how we actually apply this with clients and in our own families. You’ll walk away with a tangible plan to design liquidity that protects your family withou
Many people make more money and somehow feel more afraid. Afraid to decide. Afraid to lose. Afraid to look foolish. Afraid to miss out.https://www.youtube.com/live/00ErZ7MiuEMThis isn’t a fringe problem. It’s everywhere.And it’s solvable.Bruce and I recorded this episode to hand you a simple tool you can use to reframe fear and build the kind of financial life that runs on clarity, certainty, and stewardship.Overcoming financial fear starts hereWhat Financial Fear Really IsMake Financial Fear Work For YouScarcity vs Abundance With MoneyWhy Typical Financial Planning Fuels AnxietyTraditional Planning Builds CertaintyPut Money Back In Its PlaceHow Media and Culture Feed FearThe Practical System To Overcome Financial FearTypical Planning vs Traditional PlanningTypical PlanningTraditional PlanningOvercoming Financial Fear: From scarcity to abundance – your next stepBuild certainty, not anxiety – listen in and take your next stepBook A Strategy CallFAQ – Overcoming Financial FearWhat causes financial fear?How do I overcome financial fear fast?What is the abundance mindset with money?Is money good or evil?Why does typical retirement planning increase anxiety?How do cash flowing assets reduce financial fear?How does whole life insurance help with financial fear?What is traditional financial planning?Overcoming financial fear starts hereIf you’ve ever hesitated before a money decision, second guessed yourself after signing the paperwork, or stayed stuck because the “what ifs” grew louder than your purpose, you’ve met financial fear.This article will help you:Understand what financial fear really is, and why even high net worth families feel it.Swap a scarcity mindset for an abundance mindset without pretending fear disappears.See why typical planning fuels anxiety and how traditional planning builds certainty.Put money back in its place as a neutral tool and elevate stewardship.Take practical steps today to move from reaction to intentional design.If fear has been in the driver’s seat, it’s time to move it to the passenger side and make it serve your mission.What Financial Fear Really IsLet’s start at the root.Fear is not your enemy. It’s a God-given alarm for imminent danger.As Bruce says, fear can save your life when a car barrels toward you. You don’t want to pause and philosophize. You jump.The problem is when that same survival response starts running your money decisions. You either freeze and hoard, or you sprint from shiny object to shiny object because you’re afraid to miss out. Different behaviors. Same scarcity.I’ve watched fear show up in two common ways:Fear of running outThe miser mindset. White knuckles. No generosity. No strategic investment. Just “hold on or else.”Fear of missing outThe constant upgrader. Bigger house, better boat, newer thing. Always chasing, never satisfied.Both are scarcity. Neither is abundance.Abundance isn’t reckless. It’s not denial. It’s a settled conviction that value creation is limitless, and that you can make wise, long range decisions because you are a producer, not just a consumer.Make Financial Fear Work For YouThe most successful people don’t lack fear.They refuse to let fear set the agenda.They put emotions under the leadership of a renewed mind. They use fear as a prompt to prepare, to do the work, to practice courage, and to move anyway.Here’s a quick loop Bruce and I use:Name the fear. Say it out loud.Interrogate it. What’s the real risk, the real timeline, the real magnitude?Reframe it. What productive action can this fear fuel today?Act. Small, specific steps beat ruminating every time.Review. Talk to yourself like you talk to a friend. Record wins. Build evidence.Courage is a muscle.Train it.Scarcity vs Abundance With MoneyI like to picture a continuum with scarcity at the bottom and abundance at the top. On both ends of the bell curve, scarcity looks different but feels the same.On one end, scarcity hoards and hides.On the other, scarcity spends to soothe and signal.Abundance sits at the top and does something else entirely. It designs a system where money can be saved, used, enjoyed, replenished, and directed toward a bigger mission. It recognizes that money follows value, and value flows from serving people well.Abundance knows this truth:Money is neutral.It’s a magnifier of the soul.Put money in the hands of a wise steward and it multiplies blessing. Put money in the hands of a fool and it multiplies damage. Money did not change the heart. It revealed it.This is why character formation, family culture, and clear guidance are not side notes in finance. They are the engine.Why Typical Financial Planning Fuels AnxietyTypical planning was built to end your productivity.Work until X. Stop. Spend down the pile. Hope you don’t outlive it.Because the goal is “stop,” the math has to guess a thousand variables.Guess your lifespan.Guess returns.Guess inflation.Guess taxes.Run a Monte Carlo and call it “certainty.”It’s not certainty. It’s a string of guesses.When your entire strategy rests on projections you can’t control, you feed fear. You start managing to the simulation instead of managing to your mission.You also fragment your financial life into compartments that don’t talk to each other. Save a little here, speculate a little there, and pray it nets out.No wonder so many feel anxious.Traditional Planning Builds CertaintyTraditional planning doesn’t ask, “When can I stop being productive?”It asks, “How do I keep producing, stewarding, and compounding value for generations?”That one shift changes everything.Traditional planning prioritizes:Cash flowing assets over pure appreciationThink businesses and investments that spin off usable cash today and tomorrow.Liquidity and control so you can seize opportunitiesDry powder matters. Optionality reduces fear.Properly designed whole life insurance as a foundational assetGuaranteed cash value, contractual certainty, and a death benefit that refills the family bucket. This is family banking and a reliable backstop that turns risk setbacks into recoverable chapters.Integrated estate design that includes guidanceA will and trust are the shell. A string family culture, Memorandum of Trust, clear roles, and love letters are the substance. Don’t just transfer assets. Transfer wisdom and intent.A producer mindsetWe don’t retire from purpose. We refine it. We build the family enterprise and train the next generation to steward it.Traditional planning removes guesswork where you can and embraces guarantees where they exist. That is how you replace fear with confidence.Put Money Back In Its PlaceMany people carry a hidden belief that money is bad. Movies preach it. Social feeds imply it. And if you’ve absorbed “money is evil,” you will sabotage your own success and feel guilty about every win.I love the picture Bruce learned on the football field. Football didn’t build character. It revealed it. Money is the same. It shows what is already true in your heart and in your habits.When money is your god, it runs your life and ruins your relationships. When God is first and people are second and you include yourself in the command to love your neighbor as yourself, money becomes a powerful means to bless, build, and multiply good.Order brings peace. Peace calms fear.How Media and Culture Feed FearFear sells. Whether it’s the markets, politics, or the latest doom headline, your attention is the product.If you feed fear 24 hours a day, fear will set your financial thermostat. We do something very simple in our family. We curate inputs. We stay informed without bathing in anxiety.Perspective is your most valuable asset. Guard it.The Practical System To Overcome Financial FearLet’s translate this into steps you can take this week.Audit your mindset.Write down three places fear is currently driving your decisions. Name whether it’s fear of running out or fear of missing out.Clarify your long-range vision.Lift your eyes. Where do you want your family to be in 25, 50, 200 years? What values do you want embedded in your lineage? Your vision pulls you forward better than fear pushes you around.Strengthen liquidity and cash flow.Increase savings. Build or acquire cash flowing assets. Stop relying solely on appreciation and projections.Add guarantees where they belong.Evaluate properly structured whole life insurance as part of your base. Use it to store capital, access liquidity, and provide a guaranteed death benefit that refills the bucket and de-risks the plan.Integrate your estate design with guidance.Build or update your will and trust. Write your Memorandum of Trust. Clarify roles. Draft love letters to your heirs. Do not leave interpretation to chance.Build producer habits.Study. Create. Serve. Keep solving real problems. Producers attract opportunities. Opportunities expand options. Options reduce fear.Practice the self-talk you’d give a friend.Review wins. Document what worked. Speak to yourself with the same encouragement you offer others. This widens your capacity to choose faith over fear.Typical Planning vs Traditional PlanningUse this quick contrast to evaluate your current path.Typical PlanningEnd date focusSpend down a pileReliant on projectionsFragmented accountsRate of return obsessionHigh anxiety, low controlTraditional PlanningOngoing productionCash flow focusGuarantees where possibleIntegrated systemValue creation obsessionHigh certainty, higher controlChoose your operating system. Choose your outcomes.Overcoming Financial Fear: From scarcity to abundance – your next step...
A few weeks ago our 14-year-old daughter ordered a $30 item online with her own hard-earned cash. She was proud of herself—until a notice popped up: the product was coming from overseas and a tariff of roughly $30 would be due at delivery. She looked at me, stunned. “Wait… I have to pay double to get it?” She paused, thought, and said, “I still want it.”https://www.youtube.com/live/gV_EvvpiXwwThat tiny moment shows a big reality: taxes aren’t just something you deal with in April. They show up everywhere, often without warning, and every one of them is a leak in your wealth bucket. It’s also a simple picture of why taxes and wealth creation are tied together in ways most families never see.The Real Link Between Taxes and Wealth CreationTaxes and wealth creation: Why taxes are the biggest wealth leakThe compounding cost of taxesTaxes and wealth creation: 95% of the tax code is about how not to pay taxes“Is this deductible?” vs “How do I make this deductible?”Taxes and wealth creation: Tax planning is not tax preparationTaxes and wealth creation: The SECURE Act and a silent inheritance taxThe 10-year inherited IRA ruleTaxes and wealth creation: Roth conversions as a legacy moveTaxes and wealth creation: Positioning money where compounding can keep workingReal estate incentivesCharitable givingWhole life insurance for tax-efficient legacyTaxes and wealth creation: Thinking past your lifetimeHere’s the point: taxes and wealth creation rise and fall together.Book A Strategy CallFAQWhat is the connection between taxes and wealth creation?Why do taxes feel invisible to most families?What did the SECURE Act change for inherited retirement accounts?Are Roth conversions a good strategy for generational wealth?How does real estate help with tax-efficient wealth building?Why is tax planning different from tax preparation?How does whole life insurance fit into tax-efficient legacy planning?The Real Link Between Taxes and Wealth CreationThis topic matters because taxes quietly take more from most families than any other expense. Not your mortgage. Not your lifestyle. Taxes.In this article we’re going to pull taxes out of the “yearly chore” box and put them where they belong—in the center of your wealth plan. You’ll see why taxes are such a drag on compounding, how the tax code rewards certain behaviors, what the SECURE Act changed for retirement accounts and heirs, and why Roth conversions and other strategies can protect wealth for your lifetime and beyond. The goal is simple: help you keep more dollars in your control so they can grow and bless your family for generations.Taxes and wealth creation: Why taxes are the biggest wealth leakMost people think about taxes as a single event: file your return, see if you owe or get a refund, and move on. But Bruce made a point that changes everything: we pay taxes on almost every transaction. Federal and state income taxes are just the obvious ones. Add sales tax, gasoline taxes, property taxes, and the taxes baked into your phone and internet bill—and the true cost is enormous.Even when you don’t see it, you pay it. And the dollars you lose to taxes don’t just disappear today. You lose what those dollars could have become after decades of compounding. Once money leaves your control, the future of that money is gone forever.The compounding cost of taxesI love pictures, so here’s one we used. Imagine your money as water in a five-gallon bucket. If there are leaks in the bottom, you don’t arrive anywhere with a full bucket. Taxes are one of the biggest leaks. You can earn more and work harder, but if you don’t seal the leaks, your progress is always slower than it should be.Think about the penny-doubling example. A penny doubled daily for 30 days becomes millions, but for the first week it still feels tiny. That’s why people underestimate compounding. Taxes interrupt that curve. They pull dollars out before they ever reach the steep part of growth.Wealth isn’t only about what you earn. It’s about what you keep and control long enough for compounding to do its job. That’s why taxes and wealth creation are inseparable.Taxes and wealth creation: 95% of the tax code is about how not to pay taxesBruce shared something that shaped his whole view. A former IRS auditor once told him: only about 5% of the tax code explains how you pay taxes. The other 95% explains how you don’t have to pay taxes.That surprised me at first, but it’s true. Congress uses the tax code to steer behavior. If they want more housing, they reward people who provide housing. If they want investment in certain industries, they create incentives there. The incentives exist on purpose. If lawmakers didn’t want people to use them, they wouldn’t be written into law.“Is this deductible?” vs “How do I make this deductible?”Tax strategist Tom Wheelwright says the wrong question is, “Is this deductible?” The right question is, “How do I make this deductible?”Example: if you travel to evaluate real estate deals and your primary purpose is legitimate business, documented properly, the tax code may allow deductions. The key isn’t being clever. The key is following the rules clearly. We never recommend gray areas. Good tax strategies are black-and-white and well documented.Taxes and wealth creation: Tax planning is not tax preparationThe tax code is thousands of pages long and changes constantly. Many CPAs are overloaded with compliance work—paperwork, deadlines, filing logistics. So a lot of families get tax preparation, not tax planning.Preparation reports what happened and tells you what you owe. Planning helps you shape what you owe before the year ends. If you want to build wealth, you can’t treat planning like an afterthought.You may need a professional whose mindset is: “My job is to help your family pay the least amount of tax legally possible.” Not because taxes are bad, but because every dollar saved is a dollar that can compound, be invested, or be given with purpose.Taxes and wealth creation: The SECURE Act and a silent inheritance taxIf you have tax-deferred retirement accounts—401(k)s, IRAs, 403(b)s, SEP IRAs, deferred annuities—you need to understand what changed.Older rules required minimum distributions (RMDs) at age 70½. The SECURE Act pushed that age to 75. That sounds like a gift, but it has a catch: more years of growth means a larger account, which often leads to larger taxable withdrawals later.But the bigger change hits your heirs.The 10-year inherited IRA ruleIf a tax-deferred account passes to a spouse, they can keep deferring. If it passes to your kids or grandkids, most beneficiaries must empty the account within 10 years.Picture a 45-year-old inheriting a $1 million IRA. Under old stretch rules, they could take small withdrawals over a lifetime. Now many will take around 10% per year—about $100,000 annually—stacked on top of their working income, often in their highest-earning years. That pushes those inherited dollars into their top tax bracket.So the SECURE Act didn’t remove taxes. It concentrated them. If you do nothing, your children may pay far more tax on your retirement savings than you ever expected.Taxes and wealth creation: Roth conversions as a legacy moveThis is where Roth conversions come in. We’re not giving advice here—your personal facts matter—but the principle is powerful.A Roth conversion means paying tax on some tax-deferred dollars now so they move into a Roth account. Later withdrawals are tax-free. When the Roth passes to heirs, they still follow the 10-year rule, but distributions are generally income-tax-free.When we run numbers with families, we often find that paying some tax earlier can reduce the total tax bite over two lifetimes—yours and your kids’. For families who care about legacy, that’s a big deal.Taxes and wealth creation: Positioning money where compounding can keep workingBruce listed several straightforward ways families can keep more dollars compounding without needing complex structures.Real estate incentivesReal estate is a clear example of Congress rewarding behavior. The U.S. needs more housing, so the tax code offers depreciation and, in some cases, bonus depreciation for certain investments. Those deductions can offset taxable income and free up cash flow for more investment. The rules are specific, so strategy and documentation matter.Charitable givingIf generosity is already part of your family culture, don’t ignore how charitable strategies can lower taxes while letting you support what matters most.Whole life insurance for tax-efficient legacyThis is a place where our work often connects the dots. Properly designed whole life insurance has a unique tax profile: cash value grows tax-deferred, you can access it through policy loans without triggering income tax, and the death benefit passes to heirs income-tax-free.We like to say that every tax dollar you save is another dollar you can reposition into assets that serve generations. Whole life often becomes a family gold reserve—liquid in your lifetime, leveraged at death, and protected from future tax surprises.Taxes and wealth creation: Thinking past your lifetimeDuring the episode I shared a golf analogy. Your wealth plan is like a golf swing. Most people only focus on the backswing—everything that happens until you hit the ball. In life, that’s “my lifetime.”But legacy is the follow-through. Where does the ball go after contact? What trajectory does your wealth take after you’re gone?When you plan only for your life, you miss the biggest multiplier in tax planning: time across generations. When you plan with follow-through, you make different choices today—like paying some taxes sooner—because you see how that can protect your children from a heavier burden later....
We went live, the chat exploded, and a listener voiced what so many feel but rarely say out loud: “I’ve followed the rules—so why doesn’t my Retirement Plan feel safe?”https://www.youtube.com/live/gFQYEJWlWpIBruce gave me the look that says, “Let’s tell the truth.” Because we’ve seen it over and over: neat projections, tidy averages, and a plan that works—until the world doesn’t. Markets don’t ask permission. Inflation doesn’t use a calendar. Life throws curveballs, blessings, and bills.If your Retirement Plan only survives in a spreadsheet, it’s not a plan—it’s a hope. Today, let’s trade hope for structure and anxiety for action.What You’ll Gain From This GuideYour Retirement Plan Isn’t Just Math—It’s LifeRetirement Planning Risks You Can’t IgnoreSequence of Returns RiskInflation and the Cost-of-Living SqueezeTaxes (The Leak You Don’t See)Is the 4% Rule Still Useful? The 4% Rule Is a Guide, Not a GuaranteeThe Cash-Flow ToolkitFoundations — Guaranteed Income in RetirementFlexibility — Cash Value Life InsuranceDiversifiers — Alternative Income InvestmentsRetirement Plan Buckets Liquidity / “Free” Bucket (safety net)Income Bucket (essentials)Growth / Equity Bucket (long-term engine)Estate / Legacy Layer (optional)Taxes: Design for Control, Not SurpriseBehavior, Purpose, and Work You LoveInfinite Banking—Where It Fits in a Retirement PlanWhat Makes a Strong Retirement Plan?Take the Next StepBook A Strategy CallFAQWhat makes a strong retirement plan?Is the 4% rule safe for my retirement plan?How do taxes impact my retirement plan?Can whole life fit into a retirement plan?What are retirement income buckets?How can I protect my retirement from inflation?What’s the role of annuities vs bonds in a retirement plan?Who qualifies as an accredited investor?What You’ll Gain From This GuideIn this article, Bruce and I break down what actually makes a strong Retirement Plan for real families:Why accumulation-only thinking creates a false sense of security—and how to pivot toward reliable income.The big retirement planning risks to plan for: sequence of returns risk, inflation and retirement, and taxes.Why the 4% rule retirement guideline is a starting point, not a promise.How to use retirement income buckets—in the same language we used on the show—to avoid selling at the worst time.Where guaranteed income in retirement, cash value life insurance, and (when appropriate) alternative income fit.How Roth conversions, withdrawal sequencing, and structure put you back in control.You’ll walk away with a practical framework to move from “big balance” thinking to a Retirement Plan you can live on—calmly.Your Retirement Plan Isn’t Just Math—It’s LifeStatic models vs dynamic lives.As Bruce said, no family is static. Monte Carlo averages over 50–100 years don’t describe your next 20. Averages hide timing risk. If poor returns arrive early while you’re withdrawing, “average” performance won’t save the plan—cash flow will.From accumulation to income.Most of us were trained to chase a number. But the goal of a Retirement Plan isn’t a pile—it’s predictable cash flow you can spend without gutting your future. That shift—from “How big?” to “How dependable?”—changes the tools you choose and the peace you feel.Use the LIFE purpose filter.We run every dollar through a purpose lens: Liquid, Income, Flexible, Estate. When each bucket has a job, decisions get simpler and outcomes get sturdier.Retirement Planning Risks You Can’t IgnoreSequence of Returns RiskHow Your Retirement Plan Avoids Selling LowSequence risk is the danger of bad returns showing up early in retirement. If your portfolio drops while you’re taking income, you must sell more shares to fund the same lifestyle. That shrinks the engine that’s supposed to recover—and can cut years off a plan.Your protection: hold dedicated reserves and reliable income so market dips don’t force sales. (We’ll detail our buckets in a moment—exactly as we discussed on the show.)Inflation and the Cost-of-Living SqueezeBuild Inflation Awareness Into Your Retirement PlanPrices don’t rise politely. Even modest inflation, compounded, squeezes fixed withdrawals. Bond yields, dividend cuts, and rising living costs can collide.Your protection: blend growth and income that can adjust, avoid locking everything into fixed payouts that lose purchasing power, and review spending annually so your Retirement Plan keeps pace with reality.Taxes (The Leak You Don’t See)Retirement Plan Tax Strategy & Withdrawal SequencingWithdrawals from tax-deferred accounts are ordinary income. That can:Push you into higher bracketsTrigger IRMAA Medicare surchargesIncrease the taxation of Social SecurityComplicate capital gains planningYour protection: design taxable, tax-deferred, and tax-free buckets; use Roth conversions in favorable years; and sequence withdrawals to manage brackets and RMDs—not the other way around.Is the 4% Rule Still Useful? The 4% Rule Is a Guide, Not a GuaranteeStress-Test Withdrawal Rates You Can Actually Live WithWe don’t hate the 4% rule; we just refuse to outsource your life to it. Yields, inflation, fees, and timing change the math. When low-yield years pushed chatter toward “2.8%,” it proved the point.A better approach:Stress-test 3%–5% withdrawal rates.Add non-market income (pensions, annuities vs bonds, business/real-asset cash flow).Keep dedicated reserves so you don’t sell at the bottom.Turn a rule of thumb into a plan.The Cash-Flow ToolkitFoundations — Guaranteed Income in RetirementCover Essentials, Then Take Prudent RiskA predictable floor is priceless. Pensions, Social Security, and income annuities can cover core expenses so volatility doesn’t dictate your grocery list. You trade some upside for contractual certainty—and many families prefer sleeping well to chasing every basis point.Flexibility — Cash Value Life InsuranceDownturn Buffer, Tax-Advantaged Access, and Legacy BackfillDone properly, this can strengthen a plan:Downturn buffer: use cash value to fund spending during market slides—avoid selling equities at a loss.Tax-advantaged access: policy loans/distributions (managed correctly) can supplement income without spiking taxable income.Legacy backfill: the death benefit protects a spouse and replenishes assets for heirs, letting you spend with confidence.This is one reason infinite banking retirement thinking resonates: control and optionality matter when life isn’t linear.Diversifiers — Alternative Income InvestmentsAccredited Investor Rules, Liquidity, and Position SizeFor those who qualify under accredited investor rules, private credit, income-oriented real estate, or operating businesses can provide alternative income investments with lower correlation to public markets. They’re not risk-free and often lack daily liquidity—so size positions prudently. The draw is simple: steadier cash flow vs accumulation.Retirement Plan Buckets We didn’t frame them by time horizons on the episode; we framed them by purpose. Here’s the exact structure we discussed and use with families:Liquidity / “Free” Bucket (safety net)Cash, money market, CDs, cash value life insurance.Purpose: fund spending and surprises without touching equities during a downturn; bridge timing gaps so sequence risk doesn’t bite.Income Bucket (essentials)Social Security, pensions, annuity income, bond ladders, durable dividend payers.Purpose: dependable monthly cash flow for core lifestyle needs so markets don’t control your paycheck.Growth / Equity Bucket (long-term engine)Broad equity exposure and other long-term growth assets.Purpose: outpace inflation and periodically refill income/liquidity buckets.Estate / Legacy Layer (optional)Life insurance death benefit, beneficiary designations, trusts.Purpose: protect a spouse and pass values + capital with clarity.Taxes: Design for Control, Not SurpriseRoth conversions:Convert slices of tax-deferred money when brackets are favorable to grow your tax-free bucket.Withdrawal sequencing:Blend taxable/Roth/tax-deferred withdrawals to target bracket thresholds, manage IRMAA, and soften RMDs later.Give with intention:If charitable, consider appreciated assets or bunching strategies; align with your estate plan.We also coordinate tax buckets—taxable, tax-deferred, and tax-free (Roth/cash value)—so your Retirement Plan controls brackets, IRMAA, and RMDs rather than the other way around.A tax-smart Retirement Plan can add years of sustainability without asking for more market risk.Behavior, Purpose, and Work You LoveClarity about why the money matters anchors behavior when markets wobble. Travel with grandkids? Fund ministry? Launch a family venture? Purpose steadies the hand.And one more lever: if you enjoy your work, consider delaying full retirement. Each extra year can improve the math dramatically—more contributions, fewer withdrawal years, and potentially higher Social Security benefits.Infinite Banking—Where It Fits in a Retirement PlanLenders profit from your lifetime financing. Strengthening your family’s “bank” can keep more control in your hands:Finance major purchases through your system rather than outside lenders—recapture more interest.Maintain cash value as a volatility buffer.Use the death benefit to protect a spouse and fund legacy goals.It’s not magic. It’s discipline and design—complementary to the rest of your Retirement Plan.What Makes a Strong Retirement Plan?Built for dynamic lives, not static spreadsheets.Prioritizes cash flow you can spend, not just a big balance.Plans around sequence risk, inflation, and taxes—on purpose.
Why the Indexed Universal Life lawsuit is a wake-up callThe headlines about the Kyle Busch vs Pacific Life indexed universal life lawsuit sparked the same question I hear from thoughtful families: is my policy designed to serve me, or to serve a sales incentive? This isn’t tabloid noise. It’s a real-world reminder that choices around products, product design, and behavior determine outcomes. When insurance gets framed like an investment, confusion wins—and families pay for the confusion later.https://www.youtube.com/live/3aLnzmv2dlcBehind the headlines is a deeper issue many families face: when insurance starts getting pitched as an investment, people get hurt. This indexed universal life lawsuit isn’t just celebrity drama. It’s a cautionary tale about design choices, incentives, and behavior—three ingredients that make or break outcomes.Why the Indexed Universal Life lawsuit is a wake-up callWhy this Indexed Universal Life lawsuit matters to you1) What actually happened in the Kyle Busch vs Pacific Life case2) What Indexed Universal Life is designed to do (and why the moving parts matter)3) Why Indexed Universal Life is usually a poor fit for Infinite Banking4) The commission conversation: what really matters5) Red flags to spot in any IUL illustration6) The behavior factor: decisions drive outcomes7) Where IUL can make sense—and where it doesn’t8) How to review your current policy or a proposal in 20 minutesWhat this Indexed Universal Life lawsuit teaches usListen to the full episode on the Indexed Universal Life lawsuitBook A Strategy CallFAQWhat is the Kyle Busch vs Pacific Life indexed universal life lawsuit about?Is an indexed universal life policy a good fit for Infinite Banking?Are whole life policies safer than IUL for building cash value?How do agent commissions affect IUL performance?What red flags should I look for in an IUL illustration?Can IUL still make sense for estate planning?What’s the simplest way to protect myself before buying?Is life insurance an investment?What should I do if I already own an IUL?Why this Indexed Universal Life lawsuit matters to youHere’s the premise: The Kyle Busch vs Pacific Life indexed universal life lawsuit is shining a bright light on how certain policy designs and sales incentives can set people up for disappointment. Our goal in this article is to unpack what happened at a practical level, explain why it happened, and give you a simple framework to evaluate your own policy or a policy you’re considering.What you’ll get:A clear understanding of indexed universal life (IUL) mechanics—caps, participation rates, floors, and chargesWhy IUL is often a poor fit for Infinite Banking, and where it can make senseHow agent compensation and death benefit decisions impact performanceThe difference between marketing hype and durable guaranteesA short checklist of questions to ask before you sign anythingWe’ll speak plainly. We’ll respect your intelligence. And we’ll give you steps to protect your family and your capital.1) What actually happened in the Kyle Busch vs Pacific Life caseBruce here. Based on the widely discussed analysis from respected product designer Bobby Samuelson, the policy at the center of this story was a complex indexed universal life contract. The pitch focused on future “income.” The design featured a very high death benefit, which increases internal charges and agent compensation. It also appears the early-year cash value was constrained by both high expenses and allocation choices, and that funding didn’t match the schedule the clients initially expected. The result: heavy costs, lower-than-expected performance, and ultimately a policy lapse after substantial premiums were paid.Rachel again. Two principles jump out. First, when life insurance is positioned as an investment promising tax-free income, the conversation gets blurry fast. Second, the higher the initial death benefit, the higher the internal costs—especially for a client with added risk factors. Costs matter most in the early years. If they consume the lion’s share of premiums, policy cash value will suffer, and a lapse risk can rise.Takeaway: A policy can look good on a spreadsheet and still be fragile in real life if the design incentives and assumptions don’t align with your actual goals.2) What Indexed Universal Life is designed to do (and why the moving parts matter)Bruce here. IUL ties crediting to an index such as the S&P 500 with caps and participation rates. You don’t get the full index return. You get a portion, limited by the carrier’s rules. You also don’t take index losses; there’s usually a 0% floor for crediting. But there’s a critical nuance: while the index credit can’t go below zero, charges—cost of insurance, policy expenses, riders—still come out. A zero-crediting year can still set you back if expenses outpace gains.That’s why illustrations are tricky. They show a hypothetical average crediting rate over time. Real markets don’t move in averages, and caps, participation rates, and expenses can change. If early-year charges are high, the policy needs time, consistent funding, and sufficiently strong credited returns to catch up.Rachel here. I love simplicity and transparency. That’s why, for Infinite Banking, I prefer whole life. You get contractual guarantees on cash value and death benefit, plus the long history of dividends. Is it flashy? No. Is it dependable? Yes.3) Why Indexed Universal Life is usually a poor fit for Infinite BankingThe Infinite Banking Concept relies on stable, accessible cash value, simple mechanics, and predictable loan behavior. Here’s where IUL struggles for banking use:Volatility in crediting. Caps and participation rates can shift.Policy loans can stress the design. Loan interest plus uneven crediting can turn small missteps into big problems.Moving parts multiply complexity. If you want banking simplicity, fewer moving parts beat more every time.Could IUL fit some estate-planning use cases? Sure, for certain objectives where the focus is death benefit and there’s no plan to rely on policy loans or income. But for banking—using policy cash value as your family’s capital base—whole life’s guarantees create the clarity and control most people actually want.4) The commission conversation: what really mattersBruce here. Let’s talk compensation without the drama. In any life insurance policy, there are upfront costs. Over long horizons, those upfront costs spread out and matter less if the policy is designed and funded well. But design still matters a lot in the early years. A very high base death benefit can push up the target premium and the commission. It can also raise internal charges precisely when you need cash value efficiency.Rachel again. Ask this one question: How does this design minimize commissions and early-year drag while keeping the policy MEC-safe? In and IUL, like the one mentioned in the lawsuit, that means using a blend structure and, when appropriate, term riders like ART to support premium without bloating long-term costs. If an agent can’t explain—in plain English—how they’re minimizing commissions and internal drag, press pause.5) Red flags to spot in any IUL illustrationA few practical signals you can use immediately:The illustration calls life insurance an “investment” or implies market-like returns with no meaningful discussion of costs and moving parts.Year-1 cash value is tiny relative to premium with no clear rationale.The design amps the death benefit far above what’s needed to keep the contract non-MEC, without using low-cost term blending when available.Income projections look aggressive while early-year charges eat most premiums.Allocations default to a fixed account for years while the pitch centers on index crediting.The plan depends on perfect behavior—no missed funding, no changes, no down years—for it to work.6) The behavior factor: decisions drive outcomesBruce here. Nelson Nash reminded us: your behavior matters more than the policy. If the plan assumes consistent premium funding, or specific timing for loan repayment, those behaviors must be realistic for your family. A design that only works in a perfect world isn’t a plan; it’s a hope.Rachel again. Behavior plus guarantees is where confidence grows. I want you to be able to look at your numbers, understand them, and know what to do next—especially when life happens.7) Where IUL can make sense—and where it doesn’tWe’re not absolutists. IUL can be used intentionally in estate planning when:The primary goal is death benefit, not banking or policy loansFunding is reliable and stress-testedYou’re comfortable with moving parts and the absence of whole life guaranteesYou’ve pressure-tested outcomes under lower caps and participation ratesFor Infinite Banking—where the priority is guaranteed, steadily compounding cash value with simple loan mechanics—whole life wins on clarity, control, and durability.8) How to review your current policy or a proposal in 20 minutesUse this mini-checklist:Purpose: Is this for death benefit, banking, income, or estate planning?Guarantees: What’s guaranteed vs projected? Look at guaranteed cash value and death benefit.Early cash value: What percentage of the premium shows as cash value in years 1–3? Does it make sense?MEC safety: How is MEC testing handled? Is an ART or blend used to control costs?Commission drag: How is the design minimizing commission and internal charges while meeting your goal?IUL Allocation: Where is the premium allocated in years 1–3? Fixed vs indexed? Why?IUL Stress tests: What happens if caps/participation rates fall or a funding year is missed?Loan modeling: If banking or income is the goal, are loan assumptions conservative and clearly explained?
“It’s not the math. It’s the mindset.”When Bruce recorded this episode solo, he opened with something we’ve learned after thousands of client conversations: the biggest Infinite Banking mistakes aren’t about policy illustrations or carrier choice. They’re about us—our habits, our thinking, and the quiet patterns we bring to money.https://www.youtube.com/live/tvSGb9GkRG4I remember Nelson Nash repeating, “Rethink your thinking.” That line annoys the part of us that wants a clean spreadsheet answer. But it’s also the doorway to everything you actually want—control, peace, and a reservoir of capital that serves your family for decades.In today’s article, I’m going to unpack those human problems—Parkinson’s Law, Willie Sutton’s Law, the Golden Rule, the Arrival Syndrome, and Use-It-or-Lose-It—and connect them to the most common Infinite Banking mistakes we see. Most importantly, I’ll show you the behaviors that fix them. “It’s not the math. It’s the mindset.”What you’ll gain (and why it matters)Infinite Banking Mistakes #1 — Treating IBC like a sales system, not a lifelong conceptInfinite Banking Mistakes #2 — Short-term policy design (and base vs. PUA confusion)Infinite Banking Mistakes #3 — Misunderstanding uninterrupted compoundingInfinite Banking Mistakes #4 — Ignoring the five human problems Nelson taughtParkinson’s Law: “Expenses rise to equal income”Willie Sutton’s Law: “Money attracts seekers”The Golden Rule: “Those who have the gold make the rules”The Arrival Syndrome: “I already know this”Use It or Lose It: “Habits decay without practice”Infinite Banking Mistakes #5 — Forgetting that illustrations aren’t contractsInfinite Banking Mistakes #6 — Not paying policy loans back (on purpose)Infinite Banking Mistakes #7 — No written strategy or scorecardListen To the Full EpisodeBook A Strategy CallFAQsWhat are the most common Infinite Banking mistakes?Should I prioritize PUAs or base premium to avoid Infinite Banking mistakes?Do I have to repay policy loans in Infinite Banking?How does Parkinson’s Law cause Infinite Banking mistakes?Are policy illustrations reliable for Infinite Banking decisions?What did Nelson Nash mean by “think long range”?How do taxes relate to Infinite Banking mistakes?What you’ll gain (and why it matters)If you’re new here, I’m Rachel Marshall, co-host of The Money Advantage and a fierce believer that families can build multigenerational wealth with wisdom, not stress. The primary keyword for this piece is “Infinite Banking Mistakes,” and we’re going to name them, explain why they happen, and give you practical steps to get back on track.You’ll learn:Why behavior beats policy design over the long termHow short-term thinking shows up in base/PUA decisionsThe right way to think about uninterrupted compoundingHow to use loans and repay them without sabotaging growthThe five “human problems” Nelson warned us about—and how to overcome themIf you can absorb the mindset, the math becomes simple. If you skip the mindset, no design hack will save you. Let’s go there.Infinite Banking Mistakes #1 — Treating IBC like a sales system, not a lifelong conceptThe mistake: Looking for a quick fix—“set up a policy, borrow immediately, invest, done”—and calling it Infinite Banking.Why it happens: Our culture loves shortcuts. We’re used to products, not principles. But IBC isn’t a product; it’s a way of life. Nelson was explicit: it’s not a sales system. When we treat it like a gadget, we ignore the behaviors that made debt a problem in the first place.What to do instead:Adopt a long-range view. Commit to capitalization for years, not months.Build rhythms. Premium drafting, policy reviews, loan repayment schedules.Measure behavior. Not just cash value growth; also repayment habits, added PUAs, and opportunity filters.Infinite Banking Mistakes #2 — Short-term policy design (and base vs. PUA confusion)The mistake: Designing a very small base with heavy PUAs purely to juice early cash value, or, conversely, insisting on an all-base design without considering your funding capacity and behavior.Why it happens: Short-term thinking. People want maximum day-one access or fear they “won’t be able to fund later,” so they underbuild the foundation. On the other side, some rigidly push all-base as a rule rather than a fit.Bruce says that behavior is more important than design. He’s seen small-base policies work when owners think long range, repay loans, and continue capitalization. He’s also seen all-base work beautifully when owners behave like bankers—disciplined repayments and consistent additions.What to do instead:Design for you, not a trend. Balance base and PUAs to match your cash-flow reliability, target capitalization, and intended uses.Think in decades. Will this design still serve you when the economy changes?Stress-test with loans. Don’t just stare at year-by-year illustrations. Model loans, repayments, and changing rates. Illustrations aren’t contracts; they’re snapshots.Infinite Banking Mistakes #3 — Misunderstanding uninterrupted compoundingThe mistake: “I’ll borrow against my cash value, toss it into an investment, and because it’s ‘my money,’ I don’t need to pay it back.”Why it happens: People grasp the idea that dollars can continue compounding inside the policy while you borrow against them—but miss the second half: policy loans have a cost, and not repaying them has a bigger cost.Fix the thinking:Opportunity cost cuts both ways. Spending cash has a cost; taking a loan has a cost; not repaying has a compounding drag.Repay like a banker. Principal + interest. Treat added PUAs as “extra interest to yourself.”Match loan terms to asset behavior. Shorter paybacks for consumptive uses; structured, documented paybacks for productive investments.Infinite Banking Mistakes #4 — Ignoring the five human problems Nelson taughtNelson’s “human problems” aren’t theory; they show up in daily decisions. Let’s link each one to your IBC habits.Parkinson’s Law: “Expenses rise to equal income”Three expressions Bruce highlighted:Work expands to the time allowed.A luxury enjoyed once becomes a necessity.Expenses rise to equal income.How it breaks IBC:You design a policy to capitalize, then lifestyle creep absorbs the margin that was supposed to repay loans and fund PUAs. Loan repayments “can wait,” and soon the policy feels like a burden instead of a bank.Actions:Ring-fence capital. Automate premiums/PUAs the day income lands.Name the luxuries. Write them down. Decide which remain luxuries.Give raises a job. Allocate a percentage of every raise to capitalization before you see it.Willie Sutton’s Law: “Money attracts seekers”Willie Sutton robbed banks “because that’s where the money is.” Today, the biggest “robber” is taxes—completely legal and entirely predictable. The more efficient you become, the more attention your dollars attract—from marketers, litigators, and the tax code.IBC response:Be tax-intentional. Coordinate with your CPA before year-end. Where can after-tax dollars be channeled into assets that grow efficiently and can be accessed strategically?Protect liquidity. Keep capital where it is visible to you and less vulnerable to others.Say “no” more. High-income earners are targeted with “shiny” offers. Your bank gives you patience to wait for the right opportunities.The Golden Rule: “Those who have the gold make the rules”With cash, you negotiate better, move faster, and sleep deeper. Bruce calls this the awareness effect: once you hold capital, you see opportunities others miss—and you’re not forced to take them.IBC response:Accumulate patiently. Opportunities find cash.Price from strength. Ask for discounts, better terms, or favorable contingencies.Use cash as a filter. If the deal doesn’t clear your bar, keep compounding.The Arrival Syndrome: “I already know this”This one is rampant. When you think you’ve “arrived,” you stop learning, stop imagining, and start defending yesterday’s views. In IBC, Arrival Syndrome shows up as rigid design rules (“only this company,” “only this base/PUA ratio”), or dismissing Nelson’s “think long range” as old-fashioned.IBC response:Be a student, always. Re-read Becoming Your Own Banker. Review your policy annually. Ask better questions each year.Invite challenge. If a practitioner says “only X works,” ask why and request proofs across cycles.Protect imagination. IBC is an exercise in imagination—fund it.Use It or Lose It: “Habits decay without practice”People fund policies for a few years, never borrow, compare to a market chart, and conclude “this isn’t working.” They forget the purpose: to control the banking function—store cash, deploy it, repay it, repeat—without external permission.IBC response:Create usage plans. What will you fund? What will you finance? How will you repay?Build cadence. Quarterly loan reviews, monthly repayments, annual PUA targets.Measure the right thing. Compare to your prior debt/interest outflows, not a naked index.Infinite Banking Mistakes #5 — Forgetting that illustrations aren’t contractsThe mistake: Treating the illustration as a guarantee, especially in loan scenarios.Fix it:Pre-commit behaviors. If X happens, I’ll reduce PUAs by Y, increase repayment by Z, or pause deployments for N months.Document the banking policy. Yes—write a one-page “family banking policy” with usage rules, repayment schedules, and review dates.Infinite Banking Mistakes #6 — Not paying policy loans back (on purpose)The mistake: “It’s my money; I’ll let the interest ride.” Or, using loans for consumptive items without a repayment plan.Why it matters: Banking is a system—inflows, outflows, and disciplined loan cycles.
If you want to increase your savings, don’t start with your budget—start with your lifestyle.Your lifestyle isn’t about how much you spend.It’s about what you prioritize.It’s the visible result of invisible decisions—what you say yes to, what you say no to, and what you're building quietly behind the scenes.https://www.youtube.com/live/wZIJnteQW-gToo many people let lifestyle be the engine of their money—chasing comfort, appearances, or upgrades without ever asking:Does this reflect the values I want to pass on?Does this build up my family or just maintain an image?You don’t need a bigger house or fancier car.You need a bigger vision.You need a coordinated plan that reflects your values in how you live today—and what you leave behind tomorrow.The quiet thief of financial progress: lifestyle creep.We don’t see it coming. It’s the subtle shift that happens every time our income rises. We eat out a little more, upgrade our phone, take an extra trip, and before we know it, our expenses grow in lockstep with our income.We think we’ve moved forward—but our savings tell a different story.And that’s why Bruce and I recorded an entire podcast about this topic: how to increase your savings without reducing your lifestyle. Because true wealth isn’t about deprivation—it’s about design.Why You Can’t Save Your Way to Wealth—Without a PlanWhat Is Lifestyle Creep—And Why Is It So Dangerous?Why We Overspend—And How the Mind Tricks UsThe Savings Crisis—And What It Means for YouThe Secret Weapon—Your Wealth Coordination AccountHow to Increase Your Savings Without Reducing Your LifestyleThe Compounding Effect of Intentional SavingWhy Simplicity Beats ComplexityMargin Is the Measure of StewardshipBook A Strategy CallFAQWhat is lifestyle creep?How can I increase my savings without reducing my lifestyle?What is a Wealth Coordination Account?Why is lifestyle creep harmful?What savings rate should I aim for?Why You Can’t Save Your Way to Wealth—Without a PlanMost people try to willpower their way to saving more money. They cut lattes, cancel subscriptions, and create color-coded budgets that last about two weeks.But here’s the truth: you can’t build lasting wealth on discipline alone.You need a system—one that helps you automatically grow your savings while maintaining the lifestyle you love.In this article, Bruce and I will show you:What lifestyle creep really is and why it sabotages your wealthHow Parkinson’s Law explains your struggle to saveThe practical tool we use with clients called a Wealth Coordination AccountHow to rewire your habits to save more—without cutting joy out of your lifeWhen you finish this article, you’ll see that increasing your savings doesn’t mean living smaller. It means living smarter.What Is Lifestyle Creep—And Why Is It So Dangerous?We live in a consumption-driven world. Everywhere we look, there’s an ad convincing us we need something new.Apple doesn’t ask what we want—they tell us what we didn’t know we needed. The next iPhone, the next upgrade, the next experience.That’s lifestyle creep. It’s the pattern of spending more simply because we earn more.Bruce calls it “the hidden drain on your future.” Because when every new dollar gets consumed by an upgraded lifestyle, none of it turns into wealth.And here’s the sneaky part: it doesn’t feel reckless. It feels normal. Everyone around us does the same thing. We raise our standard of living instead of our standard of saving—and we end up with more stuff but no margin.Lifestyle creep makes you rich on the outside but broke on the inside.Why We Overspend—And How the Mind Tricks UsOur culture makes spending effortless. Credit cards, one-click shopping, social media retargeting—these are all designed to bypass logic and hit emotion.As I said on the show, “It’s the sea we swim in.”Most people don’t realize how much marketing is shaping their sense of “need.” A simple scroll through Instagram can make you feel behind—like you’re missing something everyone else has.That emotional gap drives impulsive spending. But here’s the truth: spending more rarely fills what’s missing.Bruce said it best: “Stores are designed to make your brain react. That’s why milk and eggs are at the back of the store—you walk past temptation twice.”To overcome this, you need something external to your willpower—a structure that makes intentional spending the easy choice.The Savings Crisis—And What It Means for YouLet’s look at the numbers. The U.S. personal savings rate has hovered between 4–5% for years. During COVID, it spiked, but as soon as the economy reopened, savings plummeted again.The average American spends nearly everything they earn.That means if you save 5% of your income, you’re already ahead of the national average. But if you want to build real wealth, 5% won’t cut it.In our experience, families who save 25–30% of their cash flow are the ones who move from financial stress to financial freedom.And the good news? You don’t have to cut your lifestyle to get there. You just need a plan that directs your dollars intentionally.The Secret Weapon—Your Wealth Coordination AccountHere’s the system we use and teach: The Wealth Coordination Account (WCA).Think of it as a savings autopilot—a separate account designed to catch your money before you can spend it.When your income hits your main account, a set percentage automatically flows into your WCA. You don’t see it, you don’t touch it, and you don’t rely on willpower.This isn’t about deprivation—it’s about direction.Bruce shared his personal setup: he uses a separate bank for this account, no debit card, no online transfer, and he even keeps the checks locked away. That friction creates intention.In our household, Lucas and I treat our life insurance cash value the same way—it’s our long-term wealth coordination system. Money flows there automatically, ready to fund investments, opportunities, and family goals.The point isn’t where you store it. The point is that it’s untouchable for spending. This is not your “rainy day fund.” This is your future wealth account.How to Increase Your Savings Without Reducing Your LifestyleHere’s the part most people get wrong: they think saving more means cutting back. But that’s a scarcity mindset.Instead, focus on widening the gap between what you earn and what you spend—intentionally.Here’s how to do it:Track where your money is flowing.Awareness is the first step. Use a simple spreadsheet or even a notebook to see where every dollar goes.Decide your “enough.”Be honest about what truly adds value to your life—and what’s just noise.Automate your savings.Set up a recurring transfer into your Wealth Coordination Account right after every paycheck.Increase your savings rate gradually.Every time your income rises, increase your savings by at least 1% more than your spending.Protect your progress.Avoid raiding your savings for convenience or impulse. Money in your WCA should serve one purpose: to grow your family’s wealth and stability.You’ll be amazed at how much freedom comes from structure.The Compounding Effect of Intentional SavingBruce said something in the episode that stuck with me:“Every dollar you spend is a dollar that will never earn another dollar for you.”Think about that. When you spend $500 on a television, you don’t just lose the $500—you lose what that $500 could have earned over time.If you had saved that same amount monthly and earned even 3% annually, you could have built over $1.6 million in 20 years.That’s the cost of lifestyle creep. It’s not just today’s purchase—it’s tomorrow’s potential.Saving isn’t about restriction. It’s about redemption—redeeming the future you’re called to build.Why Simplicity Beats ComplexityYou don’t need fancy software or complex budgets.Simple works.Your Wealth Coordination Account can be:A savings account at a separate bankA money market account at a brokerageThe cash value of a whole life insurance policyThe form doesn’t matter. What matters is the discipline of separation—keeping your wealth creation money apart from your spending money.When you make saving invisible and automatic, you build wealth without effort.That’s how you increase your savings without reducing your lifestyle.Margin Is the Measure of StewardshipYou don’t have to cut joy to build wealth.You don’t have to live smaller to create more impact.By designing a system that honors your values and automates your savings, you’ll create margin—and margin is the measure of true financial stewardship.Because lifestyle is not about what you own.It’s about what you prioritize.And when you prioritize increasing your savings first, you don’t just build wealth. You build freedom—for yourself, your family, and generations to come.Book A Strategy CallThis article has given you a framework for how to choose the right life insurance agent—one who will guide you, educate you, and help you build a financial legacy. If you’re ready to explore working with an advisor who understands Infinite Banking and multigenerational planning, I invite you to book a call with our team at The Money Advantage.We offer two powerful ways to help you create lasting impact:Legacy Strategy Call – If you want to uncover your family values, mission, and vision, and create a legacy that’s about more than just money, we can guide you through the process of financial stewardship and family leadership. Save time coordinating your family’s finances while building a legacy that lasts for generations. Book a Legacy Strategy Call to learn more about how we can help.Financial Strategy Call – Discover how Privatized Banking, alternative investments, tax-mitigation,
Premium financing life insurance for estate planning is one of those strategies that sounds impressive—and sometimes is. But for most families, it introduces more complexity and risk than benefit.https://www.youtube.com/live/8Dav7pQVOrcAt The Money Advantage, we don’t lead with premium financing, and we rarely recommend it. But in a recent conversation with a client facing an eight-figure estate tax liability, the question came up: “Is there a way to fund a large life insurance policy without disrupting my investment portfolio or using my own capital?”That opened the door to a serious conversation about premium financing—what it is, who it’s for, and where it can go wrong.If you’ve ever wondered about this strategy—or had it pitched to you without the full picture—this breakdown is for you.Let’s take an honest look.When Premium Financing Life Insurance Might Make SenseWhat Is Premium Financing Life Insurance?When Does Premium Financing Make Sense?1. You Have Estate Tax Exposure2. You Want to Preserve Liquidity3. You Have the Right Collateral4. You Have the Cash Flow or Exit StrategyWhy Some Premium Financing Strategies FailThe Right Way to Structure Premium FinancingOur Perspective: Leverage Is a Gift—If You Steward It WellRe-Summarizing the Big PictureWant to Learn More? Listen to the Full Podcast EpisodeBook A Strategy CallFAQ: What to Know About Premium Financing Life Insurance for Estate PlanningWhat is premium financing life insurance?Who is premium financing best for?Is premium financing life insurance risky?What types of life insurance are used in premium financing?How is the loan repaid in premium financing?Can premium financing be used with Infinite Banking?Does premium financing impact estate planning?When Premium Financing Life Insurance Might Make SenseWhile it’s not our go-to recommendation, premium financing can be useful for a small subset of high-net-worth individuals—if it's thoughtfully structured, clearly understood, and fully aligned with legacy goals.In rare cases, it allows a bank to fund large insurance premiums while the client preserves liquidity and keeps other investments in play.Here’s when it may be worth considering:You have a $10M+ net worthYou face substantial estate tax exposureYou want to avoid liquidating investments or business assetsYou can post strong collateralAnd you have a clear, realistic repayment strategyUsed responsibly, premium financing can provide leveraged protection without draining capital.Still, this isn’t about chasing leverage. It’s about stewardship. And for 99% of families, we’d guide them to simpler, more stable solutions.What Is Premium Financing Life Insurance?At its core, premium financing is when you use a third-party loan (usually from a bank) to pay the premiums on a permanent life insurance policy—typically a large whole life or indexed universal life (IUL) policy.Here’s the simplified flow:You apply for a large life insurance policy.A lender agrees to loan you the premiums (often millions of dollars).You pledge collateral—often the policy’s cash value and/or outside assets.The policy grows, the lender is repaid over time or at death, and your heirs receive the net death benefit.It’s using leverage—other people’s money—to fund a necessary part of your estate planning strategy.But here’s the key: You have to be strategic. We’ve seen it done well… and we’ve seen it go terribly wrong.When Does Premium Financing Make Sense?Let’s be crystal clear: Premium financing is NOT for everyone. This is a strategy for high-net-worth individuals, often with $5M, $10M, $25M+ in net worth.Here are the key indicators that premium financing might be a fit:1. You Have Estate Tax ExposureThe estate tax exemption is in flux—and could be cut in half. If you’re planning to leave more than $6–12 million in assets per individual, your heirs could owe 40% or more in federal estate taxes. Life insurance is a smart way to fund that liability.2. You Want to Preserve LiquidityYou don’t want to liquidate real estate, businesses, or long-term investments to fund life insurance premiums. Premium financing allows you to keep your capital working while still covering your bases.3. You Have the Right CollateralTo get approved, you’ll need to pledge assets—usually the policy’s cash value plus other marketable securities, real estate, or savings. Lenders want to minimize their risk.4. You Have the Cash Flow or Exit StrategyEventually, the loan needs to be repaid. You need a solid strategy to:Pay interest annually, orRepay the principal via asset sale, policy cash value, or death benefit.Why Some Premium Financing Strategies FailHere’s the truth: Premium financing is a powerful tool—but it can backfire without proper planning.We’ve seen cases where clients didn’t understand the loan terms, interest rates ballooned, or they weren’t prepared to post additional collateral. That’s why we don’t recommend you do this alone.Some common pitfalls:Interest-only loans with rising ratesPoorly structured IUL policies with unrealistic assumptionsNo exit strategyNot understanding the impact of collateral callsRelying solely on the policy’s projected performanceThis isn’t just about a clever financial tactic—it’s about protecting your legacy with wisdom and clarity.The Right Way to Structure Premium FinancingAt The Money Advantage, we coach families to use premium financing as a stewardship tool, not just a tax strategy. That means starting with these core questions:What’s the purpose of the life insurance?Is it for estate taxes, liquidity, wealth replacement, or legacy?What’s your repayment strategy?Do you plan to pay off the loan during life or allow it to be repaid at death?What’s your collateral position?Are you comfortable posting outside assets if needed?Do you have proper modeling and sensitivity analysis?What happens if interest rates rise? If the policy underperforms?Are you working with a team who understands the nuances?Premium financing is not DIY. You need trusted advisors—insurance, legal, tax, and financing—working together.When it’s done right, the strategy can be an elegant solution. A recent client needed $15M of life insurance but didn’t want to disrupt their business. We helped them finance the premiums, structure a repayment plan using a future liquidity event, and lock in long-term value for their heirs—without writing a seven-figure check today.Our Perspective: Leverage Is a Gift—If You Steward It WellBruce often says, “Leverage is like fire—it can cook your food or burn down your house.” And he’s right.Premium financing isn’t free money. It’s a tool—and tools require wisdom, discipline, and understanding.We’re passionate about helping families not just accumulate wealth—but design it, direct it, and transfer it with purpose. Premium financing is just one strategy in a full legacy blueprint.If you want to explore this, don’t start with the product—start with your purpose.Re-Summarizing the Big PictureWhen it comes to premium financing life insurance, we believe legacy starts with clarity, not complexity.Premium financing life insurance for estate planning is a rare and specific strategy—not our go-to approach, but a tool we evaluate for the few families it may serve well.It allows some high-net-worth individuals to:Protect their heirs from massive estate taxesAvoid liquidating key assetsUse leverage to keep capital at workBut for most families, simpler solutions like specially designed whole life insurance and Infinite Banking provide more control, clarity, and peace of mind.As always—start with your values, not the product.Want to Learn More? Listen to the Full Podcast EpisodeThis blog just scratched the surface of premium financing life insurance.🎧 In our full conversation, we go deeper into:Real-life case studies of premium financing done rightThe math behind policy performance and loan repaymentThe risks no one talks about—and how to avoid themHow to integrate premium financing into your Infinite Banking and estate planning strategy▶️ Listen now to “Premium Financing Life Insurance: Rarely Right, Sometimes Smart”:You’ll leave with the confidence to ask the right questions, avoid costly mistakes, and steward your legacy with clarity and conviction.Book A Strategy CallAnd if you’re ready to make a move, our advisor team is ready to help you walk this out—without pressure, without overwhelm, and with full clarity.Because your legacy matters.And while the future might feel uncertain, the ability to take action today? That’s fully in your hands.Start the conversation today.We offer two powerful ways to help you create lasting impact:Financial Strategy Call – Discover how Privatized Banking, alternative investments, tax-mitigation, and cash flow strategies can accelerate your time and money freedom while improving your life today. Let us show you how to align your financial resources for maximum growth and efficiency. Book a Strategy Call with our team today.Legacy Strategy Call – If you want to uncover your family values, mission, and vision, and create a legacy that’s about more than just money, we can guide you through the process of financial stewardship and family leadership. Save time coordinating your family’s finances while building a legacy that lasts for generations. Book a Legacy Strategy Call to learn more about how we can help.We specialize in working with wealth creators and their families to unlock their potential and build a meaningful, multigenerational legacy.FAQ: What to Know About Premium Financing Life Insurance for Estate PlanningWhat is premium financing life insurance?
The Corvette and the $80,000 LessonHave you ever made a money decision that felt right in the moment… only to realize later it pulled you further from your goals?You’re not alone—and you’re likely facing one of the hidden money traps that quietly sabotage even the most well-intentioned wealth-builders.https://www.youtube.com/live/I-1F6u7Z8BkImagine this: You’ve worked hard, saved diligently, and finally have $80,000 sitting in your bank account. Then, one emotional moment later, it’s gone.Bruce shared this story in a recent episode of our podcast. A client had just finalized a long, draining divorce. She felt raw, exhausted, and ready to reclaim a sense of control. So, she did what many of us have been tempted to do—she bought a brand-new Corvette. The price tag? Almost exactly $80,000. The money she had painstakingly saved evaporated in one moment of emotional relief.It wasn’t about the car—it was about a deep emotional need. And it revealed something profound about our financial lives: most of us don’t lose wealth because of external threats. We lose it because of hidden money traps—the internal patterns, habits, and blind spots that sabotage us from the inside out.And the good news? Once you can see these traps, you can avoid them.The Corvette and the $80,000 LessonWhat Are Hidden Money Traps?Parkinson’s Law: You’ll Always Find a Way to Spend ItWillie Sutton’s Law: Where There’s Money, There Are TakersThe Arrival Syndrome: “I’ve Got This Figured Out”Use It or Lose It: Information Without Application Is WorthlessThe Golden Rule: Those Who Have the Gold Make the RulesWealth Starts With AwarenessListen to the Full Episode on Hidden Money Traps🎧 Money Traps That Keep You From Building Wealth (Podcast Episode)Book A Strategy CallFAQ: Hidden Money TrapsWhat are hidden money traps?How do hidden money traps affect wealth building?What are the most common hidden money traps?Can I overcome these money traps on my own?How does Infinite Banking help avoid money traps?What Are Hidden Money Traps?If you’re here, chances are you’re trying to build real, lasting wealth. Not just money in the bank, but a legacy. Something that can bless your future self, your children, and even generations to come.But if you feel like you’re doing everything "right"—saving, investing, budgeting—and still not getting ahead, you may be dealing with hidden money traps.In this article, I’m going to walk you through the five key traps that Bruce and I discussed on our podcast—traps that even the most disciplined people fall into. Inspired by Nelson Nash’s "human conditions," these traps explain why smart people make poor financial choices, why we sabotage long-term goals for short-term pleasure, and why our mindset matters more than any market movement.This is more than a list of financial tips. It’s a mirror—and a roadmap. When you understand and overcome these traps, you unlock the power to build wealth with intention, clarity, and confidence.Let’s dive in.Parkinson’s Law: You’ll Always Find a Way to Spend ItParkinson’s Law teaches that expenses rise to match income—and sometimes even exceed it. This law is a hidden money trap that sneaks up quietly. As soon as we get a raise, a bonus, or a windfall, we convince ourselves we "deserve" an upgrade.Luxury enjoyed once becomes necessity. You buy the car, take the vacation, upgrade your phone. And before you know it, there’s no margin left for building wealth.The solution? Intentionally save before you spend. Reverse the cultural narrative. Make wealth-building your dopamine hit—not retail therapy. Celebrate a growing savings account. Find pride in discipline, not just desire.Willie Sutton’s Law: Where There’s Money, There Are TakersWillie Sutton, a famous bank robber, was once asked why he robbed banks. His answer? “Because that’s where the money is.”This principle still applies today—but not just to criminals. The more capital you accumulate, the more attractive you become to others who want a piece of it. That includes marketers, the IRS, advisors, and yes—even friends or family.The biggest taker? Often the government. If you’re accumulating wealth in traditional retirement vehicles without understanding tax strategy, you’re leaving the door open.The solution? Learn the rules of the game. Don’t just defer taxes—control them. Work with professionals who can help you legally minimize tax exposure and retain control of your capital.The Arrival Syndrome: “I’ve Got This Figured Out”One of the most dangerous financial mindsets is thinking you’ve “arrived.” That you’ve learned enough. That you know better. That you’ve outgrown the need to learn, reflect, and evolve.This trap kills curiosity. It makes us defensive. It shuts us off from the very wisdom that could take us to the next level.The solution? Stay humble. Be open. Recognize that growth never ends—and that even financial principles need to be reexamined as your life changes. As Nelson Nash said, "You have to rethink your thinking."Use It or Lose It: Information Without Application Is WorthlessWe live in a world that’s full of knowledge but short on action. Podcasts, blogs, videos, seminars—we’re swimming in advice. But what do we do with it?Learning without application is another hidden money trap. We convince ourselves that understanding a strategy is enough. But real change only happens when you implement.The solution? Take the next step. If you learn something valuable, act on it. Even small steps—opening a savings account, booking a call, starting a life insurance policy—create momentum.The Golden Rule: Those Who Have the Gold Make the RulesThis is about control. When you don’t control your capital, someone else does. And that someone else is writing your rules.Banks. Governments. Corporations. They benefit when you follow their systems—credit cards, 401(k)s, taxes. But when you have access to your own capital, you become the rule-maker.The solution? Become your own banker. Control your capital. That’s why we advocate for the Infinite Banking Concept—not just as a tactic, but as a mindset. It’s about ownership and autonomy.If you’ve ever wondered why you’re not building wealth faster, even though you’re trying to do all the right things—this is your answer. These hidden money traps are the silent saboteurs. They’re not flashy. They’re not external. They’re internal patterns, rooted in human behavior and mindset.Wealth Starts With AwarenessBut once you recognize them, you have power. You can change the script. You can override the emotional impulses. You can align your decisions with your long-term goals.Remember: wealth isn’t just about money. It’s about control. Peace. Confidence. Legacy.And it starts here.Listen to the Full Episode on Hidden Money TrapsWant to dive deeper into these powerful insights? Hear the full story, the real-time reactions, and the behind-the-scenes moments from this conversation in the original podcast episode:🎧 Money Traps That Keep You From Building Wealth (Podcast Episode)In this episode, Bruce and I explore:The emotional drivers behind poor financial choicesThe true meaning behind Nelson Nash’s “human conditions”Why even smart people lose control of their wealthAnd how YOU can build wealth that lasts generationsBook A Strategy CallAre you ready to take control of your finances and legacy? We offer two powerful ways to help you create lasting impact:Financial Strategy Call – Discover how Privatized Banking, alternative investments, tax-mitigation, and cash flow strategies can accelerate your time and money freedom while improving your life today. Let us show you how to align your financial resources for maximum growth and efficiency. Book a Strategy Call with our team today.Legacy Strategy Call – If you want to uncover your family values, mission, and vision, and create a legacy that’s about more than just money, we can guide you through the process of financial stewardship and family leadership. Save time coordinating your family’s finances while building a legacy that lasts for generations. Book a Legacy Strategy Call to learn more about how we can help.FAQ: Hidden Money TrapsWhat are hidden money traps?Hidden money traps are unconscious behaviors, mindsets, and patterns that sabotage your financial success. These traps often manifest as emotional spending, lifestyle inflation, or lack of financial control.How do hidden money traps affect wealth building?They cause you to lose control of your capital, make impulsive decisions, and sacrifice long-term gains for short-term pleasure. Recognizing them is the first step to overcoming them.What are the most common hidden money traps?Parkinson’s Law, Willie Sutton’s Law, The Arrival Syndrome, Use It or Lose It, and The Golden Rule (those who have the gold make the rules).Can I overcome these money traps on my own?Yes, but support helps. Awareness is the first step, followed by intentional action. Partnering with a financial coach or using a strategy like Infinite Banking can provide long-term solutions.How does Infinite Banking help avoid money traps?Infinite Banking gives you control over your capital, teaches long-term financial discipline, and helps you rethink your thinking around wealth.
The Gas Station Story That Reveals a Common Money MistakeLet me paint a picture for you.https://www.youtube.com/live/uqGN5Sz9tJgYou’re driving down the highway and see gas at $3.00 a gallon. Three miles later, you spot it for $2.97. You think, "Yes! A deal!" So you turn around, drive the extra six miles, and save... 30 cents.Except you used 40 cents of gas to get there.This is the kind of logic many people use when comparing Infinite Banking vs Index Funds. It’s a hyper-focus on rate of return, while missing the bigger picture of financial control, access, and long-term strategy.So let’s talk about it.The Gas Station Story That Reveals a Common Money MistakeRate of Return Isn’t the Whole StoryInfinite Banking vs Index Funds: What Are We Actually Comparing?Why Rate of Return Isn’t the Only FactorUnderstanding the Purpose of Your DollarsInfinite Banking Is About Ownership and LeverageInterrupting Compounding Is the Real CostControl vs Performance: What Matters Most?Infinite Banking vs Index Funds Is the Wrong ComparisonListen to the Full Podcast EpisodeBook A Strategy CallFAQ: Infinite Banking vs Index FundsQ: Are index funds better than Infinite Banking?Q: Can I use both Infinite Banking and index funds?Q: Does Infinite Banking have a good rate of return?Q: Is Infinite Banking risky?Rate of Return Isn’t the Whole StoryThere’s a conversation happening everywhere in the financial world: Should I use Infinite Banking or just invest in an index fund?Maybe you've asked this question yourself. You’ve heard someone say, "Wouldn’t I make more money if I just put it in an S&P 500 index fund?"This comparison sounds reasonable — until you realize it’s like comparing a hammer to a screwdriver and asking, "Which one builds a better house?"The truth? You're asking the wrong question.In this article, you’ll learn:Why comparing Infinite Banking to index funds is fundamentally flawedThe purpose and role of each strategyHow to think like a wealth creator, not just a rate chaserWhy long-term control beats short-term returnsLet’s flip the script and empower you to take control of your financial life—with clarity, confidence, and a legacy mindset.Infinite Banking vs Index Funds: What Are We Actually Comparing?Here’s where we start: Infinite Banking is not an investment.It’s a cash flow system, a capital control strategy, a way to reclaim the banking function in your life. It uses a specially designed, dividend-paying whole life insurance policy as the tool—but Infinite Banking is the process.Index funds, on the other hand, are investments. They're baskets of stocks that mirror the market—the S&P 500, the Russell 2000, etc. The goal of an index fund is growth through market performance.So when someone says, "But the market earns more than whole life insurance," they’re missing the point. We’re not solving the same problem.Infinite Banking solves for control of capital. Index funds solve for growth.Why Rate of Return Isn’t the Only FactorWe get it. Everyone wants to know their ROI. But when that becomes your only filter, you lose sight of what really matters.Consider this: When you access money from an index fund, you sell shares. You interrupt compounding. You lose growth potential.With Infinite Banking, you borrow against your cash value—without interrupting growth. That means your money continues to earn even while you're using it."You’re always paying interest. Either to someone else, or by giving up what you could have earned on your own capital." — Bruce WehnerWhen you control the banking function, you stop giving away the opportunity to earn. And that’s where legacy wealth starts.Understanding the Purpose of Your DollarsAll money has a job. We teach our clients to classify money into three roles:SafetyLiquidityGrowthMost people try to make every dollar do all three. That never works.
When Bruce came back from recording this episode of The Money Advantage podcast, he told me something that hit hard:https://www.youtube.com/live/r5oyEytzj1wHe shared how frustrated he feels every time he hears about a family who loses a loved one without proper life insurance. Suddenly, their friends and community are scrambling to create a GoFundMe page just to cover funeral expenses and basic needs.Life insurance is more than numbers—it’s a financial hug that wraps around your family when they need it most. And the person who helps you design and implement it—your insurance agent—has an enormous impact on whether your family experiences peace of mind or financial devastation.Why the Right Life Insurance Agent MattersWhy Learning How to Choose the Right Life Insurance Agent MattersNeeds vs. Wants: A Modern Approach to InsuranceTop Qualities To Look For When Choosing the Right Insurance Agent1. Integrity and Trust2. Longevity and Commitment3. Education4. Process and Personalization5. A Network and Legacy MindsetRed Flags When Deciding How to Choose the Right Life Insurance AgentWhy Infinite Banking Requires the Right Insurance AgentQuestions to Ask Before Hiring an Insurance AgentWhy This MattersBook A Strategy CallFAQ SectionQ1: Why is choosing the right insurance agent so important?Q2: What qualities should I look for in an insurance agent?Q3: What are the red flags of a bad insurance agent?Q4: Do I need a special agent for Infinite Banking?Q5: Should I replace my existing whole life insurance policy?Why the Right Life Insurance Agent MattersMost people don’t realize how choosing the right insurance agent can impact their family’s entire financial future. The right agent will walk with you for decades, guiding you through life insurance decisions and strategies like Infinite Banking. The wrong one? They may sell you a policy you don’t understand, disappear within a year, and leave your family unprotected. In this article, I’ll share insights from Bruce Wehner and his guests Rob Brayton and Jesse Durham on what to look for, red flags to avoid, and exactly how to choose the right life insurance agent for your needs.In this article, I want to share the insights Bruce and his guests, Rob Brayton and Jesse Durham, discussed on the podcast. Together, their combined decades of experience in life insurance highlight exactly what you should look for in an insurance agent—and the red flags to avoid.By the end of this article, you’ll know:Why your choice of insurance agent matters so much.The difference between traditional “needs analysis” and a modern, values-based approach.The top qualities that separate a great insurance agent from a mediocre one.Red flags that should make you pause before signing on the dotted line.Why Infinite Banking requires a very specific kind of agent.The key questions you should ask before choosing your advisor.This isn’t just about buying a product—it’s about choosing the right partner for your family’s financial future and legacy.Why Learning How to Choose the Right Life Insurance Agent MattersToo often, people see life insurance as a commodity. They Google “cheapest life insurance” and buy the lowest-priced option, thinking they’ve checked the box. But life insurance is not about buying the cheapest product.As Bruce said, that would be like asking, “What’s the lowest price I can get cancer removed from my body?” No one in their right mind would ask that! You’d ask, “Who’s the best doctor? Who will walk with me through treatment? Who will actually care for my life?”That’s the role of a great insurance agent. They’re not just selling coverage. They’re protecting your family’s future, guiding you through complex financial decisions, and ensuring your strategy works not just today, but decades from now.Needs vs. Wants: A Modern Approach to InsuranceIn the old days, insurance was sold through a “needs analysis.
Have you ever heard someone say you can use an IUL for Infinite Banking?Maybe you’ve seen a slick video online, or a persuasive advisor with charts and projections that promise you higher returns, flexible premiums, and “upside potential.” It sounds convincing—especially when you compare the numbers on an illustration. Who wouldn’t want more cash value and lower premiums?But here’s the sobering reality: when it comes to Infinite Banking, an Indexed Universal Life policy (IUL) doesn’t deliver what matters most.https://www.youtube.com/live/beR3FnHLAG4And that’s a big problem, because Infinite Banking is not about chasing the highest return—it’s about creating a system of certainty and control. If you build your family’s financial foundation on a shifting product with no guarantees, the consequences don’t show up immediately—but when they do, they can devastate your future.I don’t say this lightly. My co-host, Bruce Wehner, has seen it firsthand. For decades, he has worked with clients who were told their Universal Life or Variable Universal Life would “never fail.” And yet, over time, those policies collapsed under rising costs, vanishing crediting, or shifting assumptions. I’ll weave some of his stories in throughout this article, because you deserve to see not just the theory, but the real-world results.Today, I want to give you clarity. I want to cut through the confusion and soundbites and show you exactly why IULs cannot serve as the foundation for Infinite Banking, and what you should do instead.What Infinite Banking Really Is (and Isn’t)Can You Use IUL for Infinite Banking?Whole Life vs. IUL: The Key Differences1. Guarantees2. Premiums3. Cash Value Growth4. Loan Provisions5. EndowmentWhy Guarantees Matter for Infinite BankingCommon Misconceptions About IUL for Infinite Banking“IULs never lose money.”“IULs have more upside.”“IULs are more flexible.”Lessons from Real PeopleThe Bigger Picture: Stewardship and LegacyThe Answer to the IUL MythBook A Strategy CallFAQ: IUL for Infinite BankingCan you use IUL for Infinite Banking?Why does Infinite Banking require Whole Life insurance?Do IULs really offer more upside?What happens if I underfund an IUL?What’s the safest way to start Infinite Banking?By the end of this article, you’ll understand:Why Infinite Banking requires certainty, control, and guarantees.How Whole Life and IUL compare—and why IUL falls short.The most common misconceptions about IUL for Infinite Banking.Real lessons from history and clients who have lived through these products.How to take the next step if you’re serious about building your own banking system.Let’s dive in.What Infinite Banking Really Is (and Isn’t)When people first hear about Infinite Banking, they often confuse it with “just buying life insurance.”Here’s the truth: Infinite Banking is not about the product. It’s about the process.At its heart, Infinite Banking is about taking control of your cash flows—those dollars that normally flow out of your life to banks, credit card companies, finance companies, and investment firms—and capturing them inside your own financial system.It’s about becoming your own banker. And that requires certainty.Infinite Banking utilizing life insurance only works if you can rely on three things:Guaranteed cash value growth – You need to know your pool of capital will increase every single year, no matter what.Guaranteed level premiums – You need to know exactly what you’ll owe, so you can plan and build discipline.Guaranteed death benefit – You need the confidence that your legacy will be secure for your family, no matter what happens.If any of those guarantees are missing, you’re not in control. You’re gambling.This is why Whole Life insurance from a mutual company has always been the proper tool for Infinite Banking. And it’s also why IUL fails the test.Can You Use IUL for Infinite Banking?
When most people first hear about Infinite Banking, one of the first questions that comes up is: “But what are the risks of Infinite Banking?”It’s a fair question. We live in a financial world where we’ve been conditioned to look for the fine print, the hidden traps, and the potential downsides of anything that sounds “too good to be true.”https://www.youtube.com/live/7JHmm5jEfQ0I get it. When you first hear the concept of becoming your own banker through whole life insurance, the mind immediately goes to skepticism: Are the premiums too high? Is whole life a bad investment? What if I can’t afford it later?Here’s the truth: most of what people call the risks of Infinite Banking aren’t really risks at all. They’re misconceptions, misunderstandings, or simply the result of looking at Infinite Banking through the wrong lens.In this blog, we'll pull back the curtain and unpack the myths, expose the real risks, and help you see why Infinite Banking—when understood and implemented correctly—is not risky, but rather one of the most powerful financial strategies you can use to take control of your wealth.Common Misconceptions About Infinite BankingMyth #1: Whole Life Insurance is a Bad InvestmentMyth #2: The Premiums are Too HighMyth #3: Infinite Banking = Life InsuranceThe Real Risks of Infinite BankingRisk #1: Not Understanding the Problem You’re SolvingRisk #2: Poorly Designed PoliciesRisk #3: Dipping Your Toe InRisk #4: Wrong Perspective (Consumer vs. Owner)Why Infinite Banking Works When Done RightControl vs. DependencyRecapturing Opportunity CostMutual Companies Align With OwnersShould You Be Worried About the Risks?The Bottom Line on Infinite Banking RisksBook A Strategy CallFAQ: What Are the Risks of Infinite Banking?Is Infinite Banking risky?What are the downsides of Infinite Banking?Is Infinite Banking a scam?Can I lose money with Infinite Banking?Common Misconceptions About Infinite BankingMyth #1: Whole Life Insurance is a Bad InvestmentThis is the first thing most people say when they hear about Infinite Banking. They’ve been told for years by financial gurus that whole life insurance has a low rate of return and is therefore “a bad investment.”But here’s the problem: Infinite Banking is not an investment. It’s a system. It’s about controlling the flow of your money, not chasing the next hot stock. Whole life insurance is simply the tool that makes Infinite Banking possible—it provides the guarantees, safety, and contractual structure you need to run your own banking system.So when someone says Infinite Banking is risky because life insurance is a “bad investment,” they’re comparing apples to oranges.Myth #2: The Premiums are Too HighAnother common objection: “What if I can’t afford the premiums long term?”Here’s what most people miss. Premiums are not a bill—they are a way of paying yourself first. Every premium dollar you pay is a contribution to your own financial system. Unlike money you pay to a bank, that premium isn’t lost—it builds guaranteed cash value that you can use for opportunities, emergencies, or expenses.The real risk isn’t paying premiums. The real risk is not valuing your own capital and continuing to let someone else profit from your money.Myth #3: Infinite Banking = Life InsuranceThis is one of the biggest misconceptions. People hear Infinite Banking and immediately equate it with whole life insurance. But Infinite Banking is bigger. It’s about a process—the flow of money, storing it, using it, replenishing it. Life insurance is just the storage tank that makes the process efficient.Confusing the two is like saying “banking equals a vault.” The vault is just the tool. The banking process is much bigger.The Real Risks of Infinite BankingNow let’s get into the real question: What are the actual risks of Infinite Banking?Risk #1: Not Understanding the Problem You’re Solving
“Is Infinite Banking a sales tactic?”It’s one of the first questions we hear—and it’s a valid one.When I first encountered Infinite Banking, I wasn’t looking for a new strategy. I was simply trying to find a better place to store cash.https://www.youtube.com/live/K00YrFJtIQELike many families, Lucas and I were putting our savings into gold and silver. It felt like a smart move—until we needed liquidity. The value dropped. Selling took time. We lost money. That painful experience pushed us to rethink everything.We didn’t just need a safe place to grow money. We needed control.Later, in a conversation with Becca, she described the same thing. Money flowing in and right back out—like a stream running through a field. Helpful, yes, but gone.Then she shared the image of a beaver building a dam—not to trap water, but to create an environment where it could thrive. Safe, sustainable, and self-reliant.That’s exactly what Infinite Banking became for us. Not a product. Not a pitch. A system to store capital in a place we own, control, and can use.But the question remains:Is Infinite Banking just a life insurance sales tactic—or is it a tool to transform the way you use money for the rest of your life?Let’s unpack the truth.Is Infinite Banking a Sales Tactic… or Something Deeper?The Truth Behind the Question: Is Infinite Banking a Sales Tactic?Infinite Banking Is Not About Life Insurance—It's About Solving a ProblemBehavior Over Products: Control Over ReturnsWhole Life Insurance Isn’t the Point—It’s Just the Best ToolWhy It Looks Like a Sales Pitch—and How to Spot the Real DealWhy This Matters to YouWant the Full Story? Listen to the PodcastBook A Strategy CallIs Infinite Banking a Sales Tactic… or Something Deeper?You may have heard that Infinite Banking is just a slick way to sell life insurance.On the surface, it might even look that way. There are illustrations, charts, and policies being pitched. And when the conversation starts with numbers on a page instead of the problem it solves, skepticism is healthy.But we’re here to clear the fog.In this article, Bruce and I are going to unpack the truth behind this common misconception. You’ll learn:What Infinite Banking really is (and isn’t)Why life insurance is the best tool—but not the pointHow to recognize the difference between strategy and sales pitchAnd how to regain control of your financial life—starting nowLet’s dive in.The Truth Behind the Question: Is Infinite Banking a Sales Tactic?Infinite Banking Is Not About Life Insurance—It's About Solving a ProblemThe biggest myth we bust every week? That Infinite Banking is life insurance.It’s not.It’s a financial strategy—an operating system for your cash flow. One designed to solve a problem most people don’t even realize they have: money flowing out of their control.You earn, you spend, and the dollars disappear—off to banks, lenders, and third parties. That’s the problem.Nelson Nash, who founded the Infinite Banking Concept, said it best: "This is not a sales tool for life insurance agents." He knew the real goal was bigger—reclaiming the banking function in your life.If someone’s only showing you a pile of cash value in a policy illustration without helping you understand the problem being solved—they’re selling. But Infinite Banking, when properly understood, isn’t about selling. It’s about solving.Behavior Over Products: Control Over ReturnsMost financial conversations focus on numbers—rate of return, annual yield, projections.But Infinite Banking asks a different question:Who controls the capital?Because control changes everything.It’s not about finding the highest return. It’s about having the ability to access capital when you need it—without bank approval, without penalties, and without interrupting compound growth.That’s why we say: don’t be fooled by the visible.
A Story That Changes the Way You See WealthWhen Bruce and I sat down with Michael Cole for The Money Advantage Podcast, the conversation didn’t just scratch the surface of wealth management—it went straight to the heart of what wealth really means. Here’s a man who has advised families with an average net worth of more than $500 million, co-founded the largest network of centimillionaires in the U.S., and written the bestselling book More Than Money.https://www.youtube.com/live/DTWacmQHhSUAnd yet, when we asked him about retirement, he smiled and said, “I don’t plan on retiring. I’m finally doing the work that’s closest to my life purpose.”That one statement reframed everything. Because if someone with Michael Cole’s track record and access to the ultra-wealthy believes that life purpose—not just money—is the real destination, then we all have something to learn.A Story That Changes the Way You See WealthWhy This Matters to YouMichael Cole’s Journey to the Top of Wealth ManagementWealth Is More Than Money – The Six Forms of CapitalThe Impact of Wealth – Purpose Over PossessionsBuilding a Culture That Outlasts YouWhat the Ultra-Wealthy Invest in Right NowOvercoming Cultural Narratives About WealthWhat Michael Cole Teaches Us About WealthBook A Strategy CallWhy This Matters to YouWhether you’re just starting to build wealth, sitting on a successful business, or thinking about how to transfer assets to the next generation, the insights from Michael Cole matter to you.Here’s why: Michael has spent decades inside family offices, helping entrepreneurs, centimillionaires, and billionaires not only grow their capital but also grow their impact. He’s seen firsthand what works—and what fails—when it comes to preserving wealth and legacy.In this article, Bruce and I want to unpack the conversation we had with Michael Cole so you can walk away with:A clear understanding of why wealth is more than moneyHow to think about the impact of wealth on your family and communityPractical insights into what the ultra-wealthy are investing in right nowHow to create a family culture that outlives youMost importantly, you’ll see how Michael Cole’s perspective can empower you to stop chasing money as the end goal and start building a legacy that truly matters.Michael Cole’s Journey to the Top of Wealth ManagementMichael’s resume reads like a roadmap of the private wealth industry: Merrill Interest Trust Company, Wells Fargo’s Abbott Downing, Ascent Private Capital Management, and Crescent Capital Management. At each stage, he wasn’t just managing billions in assets—he was rethinking what it means to be a steward of wealth.And eventually, he co-founded R360, a peer-to-peer community of centimillionaires and billionaires built on one core belief: Wealth is more than money.That perspective didn’t just come from financial spreadsheets. It came from listening. Michael Cole is the kind of leader who pauses before he answers, considers both sides, and responds with wisdom. That’s why Bruce said during the episode, “Talking with you is like talking to my little brother. You think deeply, you listen, and you answer with both intellect and empathy.”Wealth Is More Than Money – The Six Forms of CapitalMichael Cole teaches that wealth stewardship requires diversification beyond just financial assets. His model highlights six forms of capital:Financial capital – the money itselfIntellectual capital – the knowledge and learning culture of a familySocial capital – networks, relationships, and giving backHuman capital – the character, skills, and wellbeing of family membersEmotional capital – resilience, connection, and healthy communicationSpiritual capital – purpose, values, and meaningJust as investors diversify portfolios, families must diversify their approach to legacy. As Michael told us, “If you’re only focused on the money,
How a Campfire Call Sparked a Financial MovementIt started with a campfire.Lucas and I were out camping when I made a phone call that would unknowingly change the course of our lives and the lives of thousands of families:“Bruce, want to start a podcast?”https://www.youtube.com/live/GKrk_LOMwI4As we looked back over the years, a theme emerged. The conversations that mattered most weren’t about rates of return, product comparisons, or clever tax tricks.That single conversation planted the seed for what is now 400 episodes of The Money Advantage Podcast—a platform that’s helped people understand how to take control of their financial lives through Infinite Banking and smart stewardship. We had no idea what it would become, but we knew we were called to do more than just manage money. We were building a mission.And here we are today, looking back on eight years of podcasting, thousands of conversations, and one shared belief: You are your greatest financial asset.How a Campfire Call Sparked a Financial MovementA Look Back: Why 400 Episodes MatterThe Power of Podcasting: Why We Started and What It’s DoneFinancial Influence Starts with CharacterJeff’s Story: It’s Not About Life Insurance—It’s About BankingWhy You’re Always Borrowing—Whether You Realize It or NotSimplicity Over Complexity: Becca’s InsightLucas’s Principle: Save Before You InvestBruce’s Wisdom: Behavior Beats DesignRachel’s Realization: It’s Not Just About the MoneyWhat This Episode Really Taught UsReady to Learn the Top Lessons About Wealth, Legacy, and Serving Families?Book A Strategy CallA Look Back: Why 400 Episodes MatterYou’re constantly being sold financial products—mutual funds, IRAs, 401(k)s, high-yield savings accounts. But what if the real question isn’t “What should I invest in?” but “How do I control my money?”That’s where Infinite Banking comes in.In this blog (and podcast), Bruce and I are reflecting on the top lessons about wealth, legacy, and serving families that we’ve learned after 400 episodes. We’ll cover:Why saving before investing matters more than flashy returnsWhat really makes Infinite Banking work (hint: it’s not just the policy)The difference between debt and liabilityHow to build a family-centered financial system that creates freedom for generationsThis isn’t just about strategies—it’s about empowering you to think differently, behave differently, and lead your family with clarity.The Power of Podcasting: Why We Started and What It’s DoneWe didn’t start podcasting to build a platform. We started to create a space for truth in finance—real conversations without the fluff. From day one, we set out to talk to you like a friend who’s learned the hard lessons, found a better way, and wants you to have access to it too.Podcasting gave us the ability to educate, build trust, and invite people into the deeper work of financial stewardship—not just financial performance.Financial Influence Starts with CharacterBruce hit the nail on the head: “High competence without high character is dangerous.”It’s not enough to be an expert. You’ve got to care more about helping people than making a sale. That’s the standard we’ve held ourselves to—and what we believe every financial guide should strive for.If you’re listening to someone online or in your life, ask yourself:Do they have both competence and character? Are they searching for truth or just selling a tactic?Jeff’s Story: It’s Not About Life Insurance—It’s About BankingWhen Jeff Jessee joined our team, we got more than a brilliant mind—we got someone who sees money like a game. And he’s right: life is a financial game, and banking is the rulebook.Jeff was already successful in the traditional financial world. But after reading Becoming Your Own Banker—twice in one night—he saw the problem: most people focus on products instead of systems.He said it best:
A friend called and said four words that changed the trajectory of a young family’s finances: Becoming Your Own Banker.At that moment, Jesse Durham was a former cop turned Spanish teacher in North Carolina. New baby. Second on the way. About $50,000 of debt. A man raised to do what most of us were taught to do: get the degree, get the job, ride the hamster wheel, and hope the math works out.https://www.youtube.com/live/kgT_7O5YHecHe walked into a live presentation with an open mind and a hungry heart. He walked out with a new paradigm.Not a gimmick. Not a hack. A structure.That day marked what Jesse now calls his “renaissance year”. And it’s why we invited him onto The Money Advantage podcast. Because the Infinite Banking Concept isn’t just a strategy on paper. It’s a lifestyle of stewardship in practice.And your family deserves that.Jesse Durham’s Journey: From Debt to Becoming Your Own BankerFrom Hamster Wheel to Stewardship: The Jesse Durham PivotWhat We Learned From Jesse Durham: Infinite Banking Is a Lifestyle, Not a Line ItemCapitalization Is the Missing MiddleThe Four-Part Filter Jesse Durham UsesNelson Nash’s Principles In Plain SightFamily Culture and Modeling: Build the Bankers You Hope To BecomeStart With Yourself, Then Include ThemWeekly Executive Meetings Turn Values Into RhythmsDebt, Discipline, and DignityReal Life First, Then Cash-Flowing AssetsThe Right Person, The Right TimeHow Jesse Durham Onboards New LearnersFaith, Purpose, and The Big PictureStay Humble. Keep Learning.Book A Strategy CallJesse Durham’s Journey: From Debt to Becoming Your Own BankerIf you’re new here, I’m Rachel Marshall, co-hosting with my friend and colleague, Bruce Wehner. Our mission is simple and weighty all at once: help high-capacity families build a legacy of more than money. Today’s conversation with Jesse Durham is a clear window into how ordinary families step off the earn-and-spend treadmill and design a private banking system that funds real life, fuels investments, and forms character across generations.Here’s what you’ll gain as you read:How Jesse went from debt and drift to intention and design.Why Infinite Banking is a lifestyle, not a line item.The simple four-part filter Jesse uses to make clear decisions.How to capitalize first, then spend with control.Practical ways policies pay for property taxes, appliances, vehicles, and opportunities.Why modeling matters for your kids, and why you must start with yourself.How weekly family meetings turn values into rhythms.The difference between credentials and character in long-term wealth stewardship.What Nelson Nash’s principles look like in real life.A first step you can take today to begin becoming your own banker.If you’re ready to move from accidental inheritance to intentional design, keep reading.From Hamster Wheel to Stewardship: The Jesse Durham PivotJesse’s story isn’t sterile or airbrushed. It’s family, career change, and financial pressure in real time.He did what most of us were modeled to do. School. Degree. Career. Debt. He and his wife started from scratch, not from a family banking system or a multi-generational enterprise. In 2015, he opened his mind to personal growth, marriage, fatherhood, and money. Not in theory. In action.First exposure to Infinite Banking. Then Nelson Nash’s book. Then the decision to implement, imperfectly and persistently. Policies were started. Debts were repaid. And something else happened under the surface.Identity shifted from consumer to steward.That’s the engine.What We Learned From Jesse Durham: Infinite Banking Is a Lifestyle, Not a Line ItemMost people have two moves with money: earn and spend. That’s not a system. That’s survival.Jesse Durham saw Infinite Banking as a third, critical move wedged between those two: capitalize.You earn.You capitalize.Then you spend.
What Most Families Miss About Whole Life Insurance Tax StrategiesMost people miss the hidden power of whole life insurance tax strategies—and in doing so, they overpay in taxes and underfund their legacy. In today’s podcast episode, Bruce Wehner dives deep into how the tax code is designed to reward strategic behavior—and how you can align your actions to reduce your tax burden and redirect that capital into wealth-building vehicles like whole life insurance.https://www.youtube.com/live/Z4BEoTli--kIn this blog, I’m going to walk you through the real, practical ways to lower your taxes, use the savings wisely, and fund your policy in a way that supports your family’s future. Whether you're a W-2 employee, small business owner, or investor, this episode breaks down how to build wealth with intention.What Most Families Miss About Whole Life Insurance Tax StrategiesWhole Life Insurance Tax Strategies Start with Tax Code IncentivesW-2 vs. Business Owner: Two Different Tax SystemsEmploying Your Kids: A Hidden GemS-Corp Strategy: Split Income, Save TaxesReal Estate Depreciation & Cost SegregationQualified Plan Repositioning: Turn Tax-Deferred Dollars into Tax-Free WealthRoth Conversions: A Strategic ShiftFunding Policies Through Parents and ChildrenThe Opportunity in Plain SightRepositioning Money Isn’t Just Smart—It’s Biblical StewardshipWant to Go Deeper into Whole Life Insurance Tax Strategies?Book A Strategy CallWhole Life Insurance Tax Strategies Start with Tax Code IncentivesCongress doesn’t just collect taxes—they guide behavior through tax incentives. The tax code is filled with legal ways to reduce what you owe, especially if you understand its design. The goal is not to avoid taxes but to steward your resources wisely.Tom Wheelwright, CPA for Robert Kiyosaki, frames it this way: the tax code is a roadmap filled with incentives. It’s designed to encourage investments in real estate, energy, and business—moves that ultimately strengthen the economy.When you understand these incentives, you begin to ask a better question: “How can I reposition my taxable income into long-term wealth?”That’s where properly structured whole life insurance comes in.W-2 vs. Business Owner: Two Different Tax SystemsThere are two tax codes in America: one for employees, and one for business owners. If you're a W-2 earner, your options are limited. But if you own a business — even a small one — the deductions available to you multiply.Start with something simple. You don’t need an LLC to begin. A sole proprietorship qualifies you for deductions like:Home office expensesBusiness mileageCell phone usageMeals and entertainmentAll of those deductions lower your taxable income and free up cash flow that can be redirected to fund a properly designed whole life policy.Employing Your Kids: A Hidden GemOne of the most overlooked strategies is hiring your children in your business. If they earn a legitimate wage (think: cleaning the office, organizing paperwork, or appearing in marketing photos), you can pay them up to $12,000/year tax-free.For you, it’s a deductible business expense.For them, it’s tax-free income under the standard deduction.That $12,000 could go directly into a whole life insurance policy for your child. You've just shifted taxable income into a tax-free legacy asset.S-Corp Strategy: Split Income, Save TaxesAnother powerful tax strategy is the S-Corporation. If you operate your business as an S-Corp, you can split your income into a salary (subject to payroll taxes) and a distribution (not subject to self-employment tax).Example:Salary: $100,000 (pays payroll taxes)Distribution: $200,000 (saves 15.3% self-employment tax)That tax savings could be reallocated directly into premium payments for a life insurance policy. It’s a way to use the structure of your income to fund wealth transfer.
What’s Really at StakeWhen it comes to short-pay vs long-pay life insurance, the question isn’t just about convenience—it’s about control, options, and legacy.https://www.youtube.com/live/dPxt8Nui4g4In this article, you’ll learn:The difference between short-pay and long-pay policiesWhy a long-pay design gives you more flexibility and cash valueHow reduced-paid-up life insurance contracts really workWhat to consider if you want to use your policy as a family bankHow to align your design with your legacy goals and future selfLet’s pull back the curtain on what really creates a robust, long-term infinite banking system.The Iceberg We’ve All MissedWhat Does “Short-Pay vs Long-Pay Life Insurance” Actually Mean?Infinite Banking System Explained—Why Long-Pay Is Often BetterReduced-Paid-Up Life Insurance Contracts—Built-In FlexibilityShort-Pay vs Long-Pay Life Insurance Policy—What’s the Real Tradeoff?7-Pay or 10-PayLong-Pay Whole LifeDesigning Life Insurance as a Family BankPolicy Design for Tax-Efficient Wealth GrowthFuture Self Planning with Life InsuranceBalancing Liquidity and Premium CommitmentWhat You Need to RememberLearn MoreBook A Strategy CallThe Iceberg We’ve All MissedWe’ve heard it so many times—"I want a 7-pay," "Just show me a 10-pay option." It sounds appealing, right? Pay for a short time, and then you’re off the hook. But here’s what we’ve found in real conversations with clients over decades:No one ever says 20 years later, “I wish I could’ve stopped paying sooner.”In fact, they say the opposite. They wish they could keep paying.Why? Because they’ve seen what a well-designed long-pay policy does for their capital, liquidity, and long-term options.What Does “Short-Pay vs Long-Pay Life Insurance” Actually Mean?This isn’t just semantics. It’s strategy.A short-pay policy is designed to have all premiums fully paid within a set period—typically 7 or 10 years. Think "7-pay" or "10-pay." After that, no further payments are required to keep the policy in force.A long-pay policy is structured to allow for premium payments for as long as possible—often up to age 100 or even 121. But here’s the kicker: you’re not required to pay that long. You just can. And that difference opens the door to flexibility, scalability, and legacy.Infinite Banking System Explained—Why Long-Pay Is Often BetterShort-pay might look sleek on paper. But infinite banking isn’t about what looks good—it’s about building long-term capital access and control.Here’s what we’ve seen:Short-pay designs limit your contribution windowYou hit a ceiling on how much capital you can injectYour banking system stagnates when you stop fundingLong-pay designs allow you to keep capitalizing your system for decades. That means:More compound growthMore tax-efficient access to capitalMore opportunities to use your policy for real estate, business, or retirementIf you think long range and don’t fear capitalization, you set yourself up to win.Reduced-Paid-Up Life Insurance Contracts—Built-In FlexibilityHere’s a secret most people don’t realize:Every life insurance policy is a short-pay policy if you want it to be.Thanks to the reduced-paid-up (RPU) provision, you can stop paying premiums at any time after the MEC window (typically 5–7 years), and your policy will remain in force with a reduced death benefit.So why design short from the start?When you structure your policy as a long-pay, you maintain the ability to:Stop paying when you wantShift to paid-up status on your termsKeep your options openShort-Pay vs Long-Pay Life Insurance Policy—What’s the Real Tradeoff?Let’s compare:7-Pay or 10-PayForces early fundingGood for clients needing a limited-time premium windowRestrictive if you want to contribute more laterLong-Pay Whole LifeSpreads premiums over time
SLAT vs ILIT for High Net Worth Estate Planning isn't just a legal distinction—it's a strategic decision that could determine how well your wealth serves your family, both now and for generations to come.https://www.youtube.com/live/CzyssnZbzD0We were deep into a conversation with Andrew Howell, one of the foremost estate planning attorneys in the country, when he casually dropped a statement that made us pause: "I haven’t drafted a new ILIT in over a decade."Wait… what?For those of us in the world of estate strategy, that kind of remark is the equivalent of a mic drop.And that’s when we knew: the conversation around trusts and legacy planning has shifted in a fundamental way.He wasn’t saying ILITs are obsolete—but that SLATs have become the preferred vehicle for families who want more than just a tax shelter. They want flexibility, values-based guidance, and multigenerational control. That one sentence reframed everything we thought we knew about irrevocable trust structures—and gave us a deeper commitment to educating families about their options.Why This MattersWhat Is a SLAT (Spousal Lifetime Access Trust)?What Is an ILIT (Irrevocable Life Insurance Trust)?SLAT vs ILIT for High Net Worth Estate PlanningAccess to FundsEstate Tax EfficiencyControl and FlexibilityLong-Term Legacy PotentialHow Dynasty Trusts Multiply the ImpactWhat This Means for YouBook A Strategy CallWhy This MattersIf you’re a high net worth individual navigating the estate planning world, you already know: it’s not just about minimizing taxes. It’s about maximizing impact.You want your wealth to do more than sit in a trust. You want it to:Empower your family.Pass on your values.Stay protected from taxes, lawsuits, and family fragmentation.Serve as a guiding structure for generational growth.That’s what today’s article is about. We’re unpacking SLAT vs ILIT for high net worth estate planning so you can:Understand the pros and cons of each structure.Learn how each trust operates in real-life scenarios.Discover which strategy aligns with your long-term legacy goals and family dynamics.And if you missed our previous post, The Pros and Cons of an ILIT, that’s a must-read companion to this piece. It sets the stage for why SLATs are now stealing the spotlight.The stakes are too high to leave this decision to a boilerplate legal plan or a one-size-fits-all document. You deserve a legacy plan as unique and dynamic as the family you’re building it for.Let’s get into it.What Is a SLAT (Spousal Lifetime Access Trust)?Bruce and I have seen this firsthand: a SLAT is one of the most powerful tools for families who want access, flexibility, and control—while also removing assets from their estate.With a SLAT, you gift assets into an irrevocable trust for your spouse’s benefit. This removes those assets (and any future growth) from your estate, reducing estate taxes and creating protection from creditors.But here’s the real magic:Your spouse can access the trust assets during their lifetime.You (the grantor) can indirectly benefit from those assets.You can build in trust protectors, distribution trustees, and managers for increased control and long-term accountability.And here’s where it gets even more powerful—many families are using SLATs as the foundation for their Family Bank strategy.That means the trust isn’t just a vault—it’s a lending institution. Your children or grandchildren can borrow from the trust to:Start a businessPurchase a first homeFund their educationBut unlike a handout, these loans come with terms, accountability, and stewardship expectations. It’s not entitlement—it’s training. It’s a way to extend trust and responsibility.Andrew emphasized that in states like Nevada, South Dakota, and Delaware, the flexibility of SLATs increases even more. These jurisdictions allow for:
The Power of a Love LetterWhen Shannon sat down to write her love letters to her children, she didn’t expect just how meaningful the process would be.What began as a simple act of putting words on paper quickly became one of the most profound steps in her family’s legacy journey. The letters reflected a lifetime of love, intention, and values that now had a permanent home.https://www.youtube.com/live/VzJGf5fD2JkFor Shannon and her husband, legacy planning for families wasn’t about cold documents or rigid legal structures. It was about love, clarity, and making sure their kids were taken care of—not just financially but emotionally and relationally.Not because of the words alone—though they were beautiful and heartfelt—but because those words captured something far deeper: a lifetime of intention, care, and values that now had a permanent home. For Shannon and her husband, legacy planning for families wasn’t about cold documents or rigid legal structures. It was about love, clarity, and making sure their kids were taken care of—not just financially but emotionally and relationally.This is the heart of legacy planning for families: making sure the people you love feel your guidance, presence, and blessing long after you’re gone. It’s not just about transferring assets—it’s about transferring identity, vision, and faith. And when done well, legacy planning becomes a source of peace, not pressure.Their journey through the Seven Generations Legacy process turned what they feared would be an overwhelming task into one of the most empowering experiences of their life.And they didn’t do it alone.They did it with guidance, structure, support—and a shared commitment to doing legacy differently.The Power of a Love LetterLegacy Planning for Families is More Than PaperworkStarting the Journey: A Shared Dream, Two Different PrioritiesBringing the Kids Into the ConversationWriting Love Letters: The Emotional Heart of the LegacyCreating a Structure That Feels Like Coming HomeWhy This Matters for Your FamilyLearn More in the Podcast EpisodeBook A Strategy CallLegacy Planning for Families is More Than PaperworkWhen most people hear "legacy planning for families," their minds jump straight to legal documents, trusts, and spreadsheets. But the truth is, your legacy isn’t built by lawyers alone. It’s not just about asset protection or tax strategy. As we learned from our client Shannon on the Money Advantage Podcast, the real work of legacy planning is deeply human.It’s about putting into words what matters most. It’s about facing the hard questions that too often get avoided. And it’s about making decisions now that reflect not just your net worth, but your heart.In this blog, we’re sharing the real-life story of Shannon and her family. You’ll walk through their experience of legacy planning with the Seven Generations Legacy coaching program, and come away with:A clear definition of what legacy planning for families actually involvesA step-by-step account of how to design a plan that aligns money with missionA framework for engaging adult children in meaningful, productive waysInsight into why emotional clarity is just as important as financial clarityAnd encouragement to start your own journey before it’s too lateBecause this kind of work doesn’t just benefit your kids when you’re gone. It changes the way your family lives together today.Starting the Journey: A Shared Dream, Two Different PrioritiesWhen Shannon and David began this journey, they were on the same team but holding different blueprints. David’s background, having grown up with limited financial resources, made it important for him to build a financial legacy. For him, the goal was protection and provision. He wanted to pass along what he had worked so hard to build.Shannon’s focus was more relational. She wanted to ensure their kids had emotional security and that nothing about th...
I’ll never forget Bruce’s story about his car—check engine light on, a mechanic insisted it needed a $1,500 catalytic converter. Bruce knew better and fixed it by simply tightening the gas cap. That story isn't just about auto repair; it perfectly illustrates why questions a good financial advisor should ask matter. Without probing, you might be sold something you don't need. Competency—not just good intentions—matters.https://www.youtube.com/live/oyEbgdU1MGIIt’s not about distrust—it’s about asking the right questions so you're not blindly following advice. And that principle applies fully when choosing a financial advisor, especially when your spouse might need to take over the reins someday.Why “Questions a Good Financial Advisor Should Ask” Are Essential1. The Big Picture: Comprehensive Financial Planning2. Spouse Financial Preparedness: Including Both of You3. Risk and Protection: Insurance, Deductibles, and Peace of Mind4. Tax Strategy and Social Security Planning5. Legacy Planning: Aligning Values and Wealth Transfer6. Financial Alignment Between SpousesWhy You Need These QuestionsReady to Empower Yourself With Questions a Good Financial Advisor Should Ask?Book A Strategy CallWhy “Questions a Good Financial Advisor Should Ask” Are EssentialBruce makes a powerful point: finance isn’t limited to investment products. Just like a mechanic or doctor examines the whole system, a skilled advisor should ask questions that uncover your entire financial ecosystem. Without comprehensive inquiry, blind spots linger—insurance gaps, overlooked risks, or hidden fees can derail your legacy.Are you unknowingly trusting a financial advisor without knowing enough about your overall financial picture? In today’s complex financial world—from taxes and Social Security to estate planning, insurance, and cash flow—a narrow focus on one product is risky.Questions a good financial advisor should ask aren’t optional—they're essential. They give you clarity, align planning with your goals, and ensure your spouse is equipped to manage your shared financial future.1. The Big Picture: Comprehensive Financial PlanningBruce sums it up: “You cannot make financial decisions in a vacuum.” Advisors who focus only on investments or insurance miss how those decisions affect cash flow, taxes, estate planning, and more.Ask:What are your current net worth and cash flow statements?How do your investments, insurance, and debts interrelate?Why it matters:Like a doctor who reviews your medical history before prescribing treatment, a competent advisor will want to see your full financial picture before making recommendations.2. Spouse Financial Preparedness: Including Both of YouToo often, one spouse is left out of discussions and can feel lost if the other dies.Key questions include:Who are your trusted advisors (financial, legal, tax)?Does your spouse know how to access online accounts, passwords, and digital assets?What’s your “Alternative Income Plan” for the surviving spouse?How comfortable is your spouse with the household financial framework?Bruce and Rachel discuss this as part of the LIFE framework:Liquid assets—money accessible within 15 minutesIncome plan—monthly income goalsFlexible investments—capital that can be reallocatedEstate plan—how wealth transfers to future generationsBoth spouses should discuss and agree on how these pieces look today and tomorrow.3. Risk and Protection: Insurance, Deductibles, and Peace of MindBruce shared his own experience with PNC: they asked about deductible choices and emotional tolerance for risk during the house fire recovery process.Essential questions a good financial advisor should ask include:What insurance do you have—life, disability, health, auto, home?Are deductibles appropriate to your cash reserves and risk tolerance?Are beneficiary designations updated and aligned with estate go...
I’ll never forget the moment my co‑host Bruce Wehner shared a powerful story: Nelson told his wife, Mary, “I need to teach you how to be a widow.” That striking phrase stopped us in our tracks. It wasn’t morbid—it was strategic. Nelson recognized that spouse financial preparedness is the cornerstone of true legacy planning. If your partner isn’t prepared to manage finances when the unthinkable happens, your careful planning unravels—and unintentional burdens form.https://www.youtube.com/live/bVBMnWHGp1YIn today’s fast-paced world, talking about money can be uncomfortable. But taking the time to ensure spouse financial preparedness isn’t just responsible—it’s transformative. As Rachel Marshall and Bruce Wehner, co-hosts of The Money Advantage Podcast, we’re here to walk you through why preparing your spouse is crucial, and how to do it effectively.By reading this article, you’ll discover:What “financial preparedness” truly meansThe critical pieces every spouse should knowPractical tools we use with clientsHow to handle emotional differences in money habitsA step-by-step framework to empower your spouse todayWhy Spouse Financial Preparedness MattersKey Areas for Spouse PreparednessIncome Plans—Now & ContingencyTaxes, Medicare & Social SecurityInsurance & ProtectionDigital Access & Password SharingEngaging Trusted AdvisorsThe LIFE Financial FrameworkManaging Emotional DifferencesTools & Rituals for PreparednessEquip Your Spouse. Protect Your Legacy.Book A Strategy CallWhy Spouse Financial Preparedness MattersBruce and I often see one partner “in the dark.” The hardworking spouse makes decisions—but the other may trust blindly, unaware of details. That puts them at risk—be it missing advisors’ phone numbers, not understanding insurance coverage, or worse: being blindsided by critical decisions.One case Bruce shared involved a wife who thought their net worth was minor—only to discover $30 million after her spouse had passed. Imagine the emotional shock—and legal busyness. That’s why spouse financial preparedness is a legacy necessity, not an optional extra.Key Areas for Spouse PreparednessTo be truly ready, your spouse needs awareness and access across five areas:Income Plans—Now & ContingencyYour spouse should understand both your current income strategy and what happens financially if one partner isn’t there. Bruce calls it having a “backup income plan.” Ask: what if I retire early? What if one income stops?Taxes, Medicare & Social SecurityOne spouse passing makes tax filing switch to “single,” which can raise Medicare Part B and D costs by up to $500/month. Understanding IRMA brackets and how Social Security survivor benefits work is vital. A spouse who knows the rules won’t fall prey to unexpected costs.Insurance & ProtectionLife is unpredictable. Couples need clarity on life, health, disability, home, auto, liability—and how they work together. A clear policy keeps your spouse empowered and protected.Digital Access & Password SharingIn today’s digital age, locked-out accounts are a nightmare. Did you know iPhone allows a “Legacy Contact”? A shared password vault ensures your partner can access bank, utilities, email—and even that mysterious password for your favorite travel site.Engaging Trusted AdvisorsMake sure your spouse knows and trusts your financial, legal, insurance, and tax advisors. Ideally, they attend meetings together or at least meet face-to-face. That ensures seamless transition—and peace of mind—should something happen.The LIFE Financial FrameworkBruce and I use a powerful acronym—L.I.F.E.—to frame preparedness:Liquid: How much cash is needed within minutes for emergencies?Income: Do you want fixed guaranteed income to cover essentials, plus variable funds for lifestyle?Flexible: Which assets can be repositioned for other goals—travel, education, emergencies?
How Much Life Insurance Do I Need? Why That’s the Wrong QuestionIf you’ve ever asked, “How much life insurance do I need?”—you’re not alone. It’s a common starting point. But in this article, Bruce and I (Rachel) want to challenge that question and offer something better. Because "need" is often based on a survival mentality—what’s the bare minimum? But the real question isn’t about scraping by. It’s about what you want your life insurance to do—for you, for your spouse, for your children, and for future generations.https://www.youtube.com/live/xhGublGpz7wIn this article, you'll learn:Why a needs-based approach might be leaving your family unprotectedHow to calculate a more empowering life insurance amountWhat insurance companies actually look for (and why you can't be "overinsured")The role of Infinite Banking in maximizing death benefit and legacyHow to think long-term, strategically, and legacy-minded when it comes to life insuranceHow Much Life Insurance Do I Need? Why That’s the Wrong QuestionWhy My Husband’s First Thought Was Our Life InsuranceNeeds-Based Life Insurance Leaves You ShortThe Real Question: How Much Life Insurance Do I Want?Income Replacement + Future Value = What You’re Really ProtectingDeath Benefit Grows with Infinite BankingInsurability: Use It or Lose ItCost vs. Value: What Wealthy People UnderstandBuild a Life Insurance Strategy That EmpowersLearn More in the PodcastBook A Strategy CallWhy My Husband’s First Thought Was Our Life InsuranceSix years ago, I was in the ICU. My husband, Lucas, held our newborn baby girl as the doctors delivered updates that swung between hope and despair. One moment, it was "we stopped the bleeding," the next, "this is still serious." As he prayed through the fear and the unknown, one practical thought anchored him: We have life insurance. Not just any policy—we had as much life insurance as we could get. And in that moment, he knew he wouldn't have to make rushed decisions or shoulder financial pressure on top of emotional trauma. That policy was our safety net, our peace of mind.That’s why this conversation matters. It’s not just about numbers on paper. It’s about preparing for the moments you hope never come—and giving your family the ability to respond from a place of strength.Needs-Based Life Insurance Leaves You ShortMost people approach life insurance with a checklist:Mortgage? Check.College for kids? Check.Debts? Check.Burial expenses? Check.And that’s how traditional advisors calculate the "amount you need." They total up obligations and say, “That’s your number.” But this method reduces life insurance to a bill-pay strategy. It doesn’t account for who you are, the value of your work, or the future your family deserves to continue building.In the Infinite Banking world, we don’t view life insurance as just a financial parachute. We see it as a tool for opportunity, a storehouse of value, and a means to start your family ahead, not just keep them from falling behind.The Real Question: How Much Life Insurance Do I Want?"Need" is survival. "Want" is vision.If your life insurance policy could fund your family’s future, preserve your estate, and launch the next generation into opportunity—how much would you want?Bruce and I often see families with grossly underfunded policies simply because they didn’t know what was possible. Insurance companies assess what’s called your human life value—a calculation of your income, age, and potential future earnings. Based on that, they allow you to apply for a corresponding death benefit. If you qualify for $4 million in coverage, it's because they believe your life’s economic value warrants it.You can’t be overinsured. The carriers won’t let you.So the real question becomes: If they’ll insure me for this amount… why wouldn’t I take it?Income Replacement + Future Value = What You’re Really Protecting
Lately, we’ve seen a troubling trend online.People—some well-meaning, some not—are sharing misinformation about mutual holding companies, claiming these companies are no longer mutually owned or that they’ve quietly abandoned their policyholders.That couldn’t be further from the truth.So Joe, Bruce, and I decided it was time to clear the air. Because when it comes to protecting your family’s legacy, clarity matters more than opinion. You deserve to understand the facts—not fear-based interpretations.And as we’ve seen too often, when confusion spreads unchecked, people start making financial decisions on the wrong foundation.That’s not stewardship. That’s reaction.Why We Had to Talk About Mutual Holding CompaniesWhat Is a Mutual Holding Company?Do Policyholders Still Have Ownership and Voting Rights?Why Would a Company Make This Change?Are Mutual Holding Companies Dangerous?What Does This Mean for Your Infinite Banking Strategy?What This Means for YouBook A Strategy CallWhy We Had to Talk About Mutual Holding CompaniesWhen you use whole life insurance as a long-term asset—and especially when you're building a Privatized Banking System—you want to know the company you’ve partnered with is stable, aligned with your values, and built to honor policyholders for the long haul.That's why we recorded this episode:To define what a mutual holding company really isTo contrast it with traditional mutual companiesTo explore how it affects voting rights, ownership, and trustAnd to provide clarity amid a cloud of online confusionOur goal is not to push any specific company, nor to attack those raising questions. But we do want to make sure the conversation is grounded in accuracy—because your stewardship depends on it.What Is a Mutual Holding Company?At its core, a mutual holding company (MHC) is a specific kind of corporate structure that allows a life insurance company to retain mutual ownership while gaining the flexibility to create stock subsidiaries. This means the parent company is still owned by policyholders, while the subsidiary has the ability to raise capital through stock offerings.Bruce broke it down this way:“A mutual company is owned by the policyholders... When it becomes a mutual holding company, it’s still owned by the policyholders, but they insert a stock company below that for reasons like expanding or raising capital.”This structural change is about flexibility—especially for future growth, acquisitions, or increased reserve requirements. It’s not inherently negative. It’s a strategic business decision, and it's one we should understand, not fear.Do Policyholders Still Have Ownership and Voting Rights?Yes—and this is where the misinformation gets loudest and most misleading.In a mutual holding company, policyholders still own the mutual holding company itself. That hasn’t changed. What has changed is that the operational insurance company underneath the holding company is now a stock entity—one that may have shareholders in addition to the parent company.Rachel explained:“There’s this perception that if a company becomes a mutual holding company, they’re no longer mutually owned... But that’s not true. The policyholders still own the mutual holding company. They still elect the board.”So yes, the structure is layered. But no, policyholders haven’t been stripped of ownership or voting rights.Joe added that this structure can even be a way for companies to avoid full demutualization, which would entirely sever mutual ownership.Why Would a Company Make This Change?There are many reasons an insurer might transition to an MHC:To raise capital for growthTo meet solvency or reserve requirementsTo create a defensive structure to avoid hostile takeovers or future demutualizationTo diversify business offerings or form subsidiariesBruce emphasized that mutual companies must act in the poli...
A few weeks ago, something special happened as we kicked off a podcast recording—Joe DeFazio held up a first edition copy of Becoming Your Own Banker by Nelson Nash. It had just arrived in his hands, passed down like a sacred trust.https://www.youtube.com/live/4MpwxirBpGAWe weren’t in the same room, so Bruce and I couldn’t flip through the pages or feel its weight for ourselves—but even through the screen, we felt the gravity.Because legacy isn’t just a word. It’s a responsibility. A principle to be protected. A baton handed from one generation to the next.That moment with Joe sparked a powerful conversation—one that led us straight into one of the most debated and misunderstood topics in the Infinite Banking world: Single Premium Paid-Up Additions (SPUA).So we hit record.What This Article Will Help You UnderstandWhat Are Single Premium Paid-Up Additions (SPUA)?Why Single Premium Paid-Up Additions Sound So AttractiveThe Hidden Risks of SPUA-Focused Policy DesignWhat Nelson Nash Actually TaughtWhen Might Single Premium Paid-Up Additions Make Sense?Designing Policies with Stability, Not Just SpeedWhy This Matters to Your LegacyLearn More in the Full EpisodeBook A Strategy CallWhat This Article Will Help You UnderstandWhether you're new to Infinite Banking or already several policies in, the way your policy is designed will either set you up for long-term success or put you on shaky ground.In this article, you’ll learn:What a Single Premium Paid-Up Addition (SPUA) actually isWhy it’s used and how it can be beneficial in certain scenariosThe hidden risks of designing your policy with a large SPUAThe difference between short-term cash value and long-term capital buildingWhat Nelson Nash really taught—and why his principles are more relevant than everHow to make smart, future-focused decisions about your family’s financial systemThis is for anyone who wants clarity, not confusion. Stewardship, not hype. And legacy, not just liquidity.What Are Single Premium Paid-Up Additions (SPUA)?Let’s define this clearly.A Single Premium Paid-Up Addition, or SPUA, is a one-time lump sum payment you make into your whole life insurance policy. This premium increases your death benefit and creates immediate cash value—without any future obligation to continue funding that specific rider.It’s often marketed as a fast way to “supercharge” your cash value in the first year of your policy.But here’s what we want you to know: while that may be true in the short term, SPUAs come with trade-offs that must be understood before you jump in.Why Single Premium Paid-Up Additions Sound So AttractiveIn theory, Single Premium Paid-Up Additions are incredibly appealing:You get immediate access to a large chunk of cash valueYou avoid the need to commit to an ongoing paymentYou increase the policy's death benefit right awayYou can “jumpstart” the banking process soonerIf you just received a windfall—or you want liquidity right now—this can sound like the perfect fit. And that’s why it’s being marketed so heavily.But we urge you: don’t just ask what sounds good today. Ask what still works 30 years from now.Because when you dig into the details, you realize it’s not about how fast your policy can go. It’s about how well it can hold up when the storms come.The Hidden Risks of SPUA-Focused Policy DesignHere’s where we need to slow down and talk about the bigger picture.When a policy is designed to accept a large SPUA, a few things must happen under the hood:The policy’s base premium is minimizedA significant term rider is added to prevent MEC (Modified Endowment Contract) statusThe design often pushes the illustration right up to the IRS limits for tax-advantaged treatmentThis creates a fragile foundation.Think of it like this: if your policy is a sailboat, the base is the hull. The PUA is the sail.
In today’s post, Bruce and I (Rachel Marshall) want to bring you behind the scenes of a candid and educational conversation we had with Matt Ewald, Vice President of Life Insurance at Advisors Excel. If you’ve ever wondered when and why to use guaranteed universal life insurance (GUL) —especially in the context of estate planning—this one is for you.We’ve been having more and more conversations with families who aren’t just thinking about how to grow their wealth—but how to keep it intact for the next generation. And when estate taxes enter the picture, the stakes change. It’s not just about protecting income anymore—it’s about protecting impact. About making sure what you’ve built doesn’t get lost in fees, confusion, or government claims.Because when it comes to life insurance in the context of wealth transfer, you’re not just planning for protection—you’re planning for legacy.Let’s get into it.Why This Conversation MattersFrom Infinite Banking to Estate Strategy: A Shift in FocusGuaranteed Universal Life insurance 101: What It Is (and Isn’t)Estate Planning and the Tax ConversationThe Myth of “Set It and Forget It”What About Accessing Capital?Roth Conversions, IRA Taxes, and Legislative RiskThe Real Value: Peace of Mind, Not Just Rate of ReturnWhat We CoveredBook A Strategy CallWhy This Conversation MattersIf you’re like most of our clients, you’re already successful. You’ve created wealth, you’ve stewarded well—and now you’re asking deeper questions.Questions like:How do I pass on what I’ve built with intention?How do I shield my estate from unnecessary taxation?Is whole life the only tool for this? Or is there something else I should consider?In this blog, we’re breaking down exactly what guaranteed universal life insurance is, how it’s different from traditional IULs and whole life, and why it could be a strategic piece in your legacy plan.From Infinite Banking to Estate Strategy: A Shift in FocusWe spend a lot of time on this podcast talking about whole life and its power as a privatized banking system—a way to store capital, access liquidity, and fund your life on your own terms.But not every financial goal calls for cash accumulation.Sometimes, the goal isn’t to use the money during your lifetime at all. It’s to transfer wealth efficiently, minimize estate taxes, and ensure your heirs receive more—without the friction and loss.And that’s where guaranteed universal life enters the scene.Guaranteed Universal Life insurance 101: What It Is (and Isn’t)Matt Ewald described guaranteed universal life insurance as a permanent term contract. That phrase stuck with me.Here’s what it means:GUL is designed to give you the most death benefit for the least premium.Unlike cash-rich whole life or traditional IULs used for banking or income, GUL is a protection-first strategy.The focus is not on growing cash inside the policy. The focus is on locking in a death benefit that will be there guaranteed—no matter what the market does.And what makes it guaranteed?The no-lapse guarantee rider.This rider is the linchpin. It says, “As long as you pay the premium exactly as illustrated, this policy will not lapse—no matter how the underlying market indexes perform, no matter what cap rates change, no matter what happens behind the scenes.”It’s simple. It’s predictable. And it’s ideal for estate planning when death benefit certainty is the priority.Estate Planning and the Tax ConversationHere’s the reality we’re facing:The estate tax exemption today is high—around $13 million per person. But it won’t stay there forever.Just 20 years ago, it was $1 million. And the political winds are already shifting toward reducing the exemption again.That means more families will face estate tax exposure in the future—even those who don’t consider themselves “ultra-wealthy.”And taxes at death are not just a theoretical prob...
There’s a story Buffy Ruthardt shared that still gives me chills.She and her husband Darren were on a drive, just processing life and legacy—wondering aloud what it might look like for their children to live in their inheritance while they were still alive. Not just financially, but spiritually, relationally, and generationally.https://www.youtube.com/live/dMMgfxEohsIIt was a bold idea.But they didn’t know how to do it. No roadmap. No clarity. No strategy to get there. And then… they heard a Facebook ad for Seven Generations Legacy®.That was the nudge.They followed that moment of divine appointment to begin faith-based legacy planning, and today, their family is operating with a whole new level of clarity, unity, and purpose.“We were doing our best… but we had no tracks to run on.”Faith-Based Legacy Planning in ActionFrom Disconnected Assets to a Unified Legacy VisionThe Meaning: Writing Down the Culture That Was Already ThereThe Mechanism: Getting the Legal and Structural House in OrderThe Money: From Siloed Accounts to Stewardship StrategyThe Fruit of Faith-Based Legacy Planning: Family Meetings, Health Goals, and a Future PodcastWhat It Really Means to Align Wealth with ValuesWant to Build Your Own Legacy?Book A Strategy Call“We were doing our best… but we had no tracks to run on.”I’ll never forget this moment.Buffy and Darren sat across from me on Zoom, eyes bright with conviction, reflecting on their journey. They’d built a beautiful life—decades of hard work, provision, blessing. But as they looked at their children, now adults, they knew something deeper was stirring.“We had direction,” Buffy said, “but no map.”That’s when they found the Seven Generations Legacy® Coaching Program. And everything changed.They weren’t just searching for a way to preserve wealth. They were on a mission to steward something sacred: their faith, their values, and the legacy they knew God had placed in their hands for generations to come.Faith-Based Legacy Planning in ActionWhen we talk about faith-based legacy planning, we’re not just talking about trust documents or estate strategies. We’re talking about shaping the kind of family culture that lasts beyond your lifetime.That’s what Darren and Buffy came looking for—and that’s what they built.They had wealth. They had faith. They had a vision.What they needed was a mechanism.At The Money Advantage™, we don’t talk about inheritance the way the world does. This isn’t about how much you leave—it’s about what you leave in the people you love.If you’ve ever thought…“I’ve built something valuable—but how do I pass it on with meaning?”“Our kids aren’t quite ready… but I want to guide them.”“We have the assets, but not the structure. Where do we start?”…then you’re not alone. And this story is for you.In this episode of The Money Advantage™ Podcast, we unpack their full journey—from feeling stuck with disjointed entities and unspoken hopes… to confidently stewarding their family’s meaning, mechanism, and money with purpose.We’ll walk you through Darren and Buffy’s real-life experience using the Seven Generations Legacy® process, including:Why they felt stuck, even after decades of successHow they aligned their faith, finances, and familyThe power of creating meaning and mechanism—not just moneyWhat happened after they hosted their first Family Legacy SummitThis isn’t theory. This is transformation.If you’ve ever wondered how to truly align your values with your wealth—or how to pass on something deeper than money—this story is for you.From Disconnected Assets to a Unified Legacy VisionDarren and Buffy didn’t come to Seven Generations Legacy empty-handed.They had two decades of successful business ownership, investments, and assets. But what they didn’t have was an integrated plan—or a way to ensure it wouldn’t all unravel when passed to the next generat...
Let me tell you a quick story.Imagine walking into your local grocery store, grabbing a can of peas, and sneaking out the back door without paying. It sounds ridiculous—maybe even unethical, right? Now, imagine the opposite: You pick up the same can, go to the register, pay for it, and walk out the front door with a receipt in hand. https://www.youtube.com/live/GZ7wNDb-ugYThat simple act—paying at the register instead of sneaking out the back—perfectly illustrates one of the most misunderstood aspects of how to design a whole life policy for Infinite Banking.In the world of Infinite Banking, how you design your policy—how you pay into it, structure it, and use it—determines whether you’re building a self-sustaining system or just draining your wealth through the back door.Why Policy Design Isn’t Just Technical—It’s TransformationalWhy Most People Start Too Small—or Too FastHow to Design a Whole Life Policy for Infinite Banking That Lasts a LifetimeUnderstand the Balance: Base Premium vs. PUAYou’re Plugging Into a 200-Year-Old Business ModelCompound Interest Only Works If You Stop Interrupting ItLegacy Isn’t a Caboose—It’s the EngineWhat Happens When You Design It RightBook A Strategy CallWhy Policy Design Isn’t Just Technical—It’s TransformationalMost people hear about infinite banking and jump to the mechanics: “Just get a whole life policy, borrow against the cash value, and repeat.” But here’s what they don’t realize—the policy design is the difference between building a thriving family banking system and being stuck in financial frustration.It’s not just about having a policy. It’s about knowing how to design a whole life policy for infinite banking that supports liquidity, growth, leverage, and generational transfer.In this blog, we’re going to walk you through:Why policy design matters more than people thinkThe difference between base premium and paid-up additions (PUAs)The hidden costs of “high cash value” quick startsHow to build a system of policies, not just oneWhy thinking generationally changes everythingBy the end, you’ll understand exactly how to create a design that serves your financial life now and becomes a blessing to future generations.Why Most People Start Too Small—or Too FastWe see it all the time. Someone discovers infinite banking and gets excited. They want a policy with the most cash value right now. And that’s not wrong—it’s just shortsighted.Here’s the truth: Policies that prioritize high early cash value often sacrifice long-term performance.The reason? To make those numbers work, designers load up the policy with PUAs (paid-up additions) and sometimes minimal base premium. That means you get very high liquidity early, yes—but you may cap out your insurability and miss the long-term efficiency that comes from a well-balanced policy.As Joe put it: "The only truly bad policy is the one that uses up all your capacity and then handicaps you from fixing it later."The real win is designing a policy you can grow with—and expand into a system over time.How to Design a Whole Life Policy for Infinite Banking That Lasts a LifetimeNelson Nash, the father of infinite banking, made it crystal clear: You’re not solving your entire banking need with a single policy. You’re building a system—a privatized family banking system that scales with your life.If you view your first policy as the only policy, you’ll over-optimize for short-term performance and miss the compounding tailwinds available when you structure for longevity.Instead, when you're considering how to design a whole life policy for infinite banking, think in terms of scalability. Start with one. Make sure it’s structured well. Then expand.Think of it like building a fleet of airplanes, not just one solo jet. Each new policy adds to your system's speed, altitude, and carrying capacity. Over time,
It started with a bold question that showed up in a public comment: "If infinite banking is so powerful, why wouldn't I just put all my income into a whole life policy?" That single comment sparked a deeply layered, thoughtful conversation that we knew needed more attention.It wasn't criticism. It was curiosity.And curiosity, when channeled with wisdom and humility, can be a catalyst for generational transformation.So today, we’re opening up that conversation—and giving you the full picture of what it really means to go "all in" with infinite banking.What You’re Really Asking When You Consider Putting All Your Income into a Whole Life PolicyShould You Really Put All Your Income into a Whole Life Policy? (The Real Answer May Surprise You)The Spirit Behind the Question Think Long Range: The Power of Time Don’t Be Afraid to Capitalize—But Be Strategic Policy Design: Base vs. PUA, and Why It Matters Understand Insurability and Premium Affordability Sustainability Is Freedom The Danger of Over-Leveraging and Poor RepaymentWhy All Your Income into a Whole Life Policy Shouldn’t Be Your Only StrategyBook A Strategy CallWhat You’re Really Asking When You Consider Putting All Your Income into a Whole Life PolicyThe idea of putting all your income into a whole life policy sounds bold—even radical. And in the context of the infinite banking concept (IBC), it’s a question worth exploring.As someone who's lived and breathed this philosophy, I (Rachel Marshall) have heard this question before. And in this conversation with my colleague Joe DeFazio, we wanted to approach it with both clarity and candor. Because here’s the truth:Yes, whole life insurance and infinite banking can be incredibly powerful tools for financial freedom, stewardship, and legacy-building. But like any strategy, the design and implementation matter.In this article, we're going to unpack the principles behind the idea of putting all your income into a whole life policy, the risks, the benefits, and most importantly—the mindset that helps you use this tool to its fullest, most sustainable potential.You’ll learn:- Why infinite banking isn't just about the numbers—it's about long-term thinking- The role of policy design and insurability- How to balance capitalization with sustainability- Why freedom comes through commitmentLet’s dive in.Should You Really Put All Your Income into a Whole Life Policy? (The Real Answer May Surprise You)If you're asking whether to put all your income into a whole life policy, you’re not alone. It’s a question we hear often—and for good reason.The Infinite Banking Concept is compelling. It gives you control, liquidity, privacy, and long-term access to capital. It feels like the financial tool we’ve all been waiting for—and in many ways, it is.But let’s be clear: Infinite Banking is a system. Not a silver bullet.Going "all in" on a whole life policy without the right structure is like planting seeds without soil. Yes, premium matters. But without a clear understanding of how that premium fits into your broader wealth strategy, you could easily find yourself over-leveraged and cash-strapped.Nelson Nash taught us that capitalization is essential, but he never said to abandon wisdom in the process.That’s why our answer is almost always: no, don’t put all your income into a policy.Instead, fund it based on your long-term strategy, your liquidity needs, your investing rhythm, and your ability to keep the policy active through every season of life. Think marathon, not sprint.When clients ask this question, we gently guide them back to the deeper one: What are you really trying to build?Because when you understand the real vision, your policy becomes a tool—not a trap.The Spirit Behind the QuestionWe weren’t offended by the question. Quite the opposite.It takes courage to ask, "Why not go all in?" But before we can even answer that,
Recently, Bruce shared a story that perfectly illustrates unexpected life challenges—his basement flooded, turning a peaceful Easter weekend into an emergency cleanup session. Just as unexpected problems can flood your home, unanswered financial questions can flood your business strategy, especially questions like: "Can you deduct life insurance premiums?"https://www.youtube.com/live/crKKtLvZ44kTax questions, much like sudden home repairs, can disrupt your carefully planned financial landscape. Whether it's water damage or unclear tax regulations, not addressing the problem can lead to costly mistakes down the road. Today, Bruce and I aim to clear up one of these significant financial uncertainties for business owners.Why Understanding Life Insurance Deductions MattersUnderstanding the Deductibility of Life Insurance PremiumsCan You Deduct Life Insurance PremiumsThe Supreme Court’s Stance and Its ImplicationsStrategic Ways to Indirectly Deduct PremiumsAvoiding Short-Term Tax MistakesContracts vs. Accounts: Ensuring Long-Term CertaintyNavigating Complexity with Professional HelpThe Strategic Power of Life Insurance PremiumsBook A Strategy CallWhy Understanding Life Insurance Deductions MattersThe question "Can you deduct life insurance premiums?" isn't just a minor tax issue—it's central to building an efficient, effective, and robust financial strategy. Life insurance policies are powerful financial tools that, when used correctly, can significantly enhance your financial well-being. However, misunderstandings about their tax implications can lead to missed opportunities or even costly errors.In this detailed article, you'll gain clarity regarding the question "Can you deduct life insurance premiums?", the rationale behind IRS rulings, practical and legitimate strategies to indirectly achieve similar benefits, and the pitfalls to avoid in your quest for tax efficiency. By mastering these concepts, you'll be well-equipped to incorporate life insurance intelligently into your broader financial planning strategy.Understanding the Deductibility of Life Insurance PremiumsCan You Deduct Life Insurance PremiumsBruce frequently encounters confusion among business owners about deducting life insurance premiums. Let’s clear this up immediately: in most cases, you cannot directly deduct life insurance premiums from your taxes if the business owner benefits directly from the policy. The IRS views this scenario as lacking genuine "economic substance," as the policyholder ultimately recoups these premiums through a tax-free death benefit, meaning there's no real economic loss to justify a deduction.The Supreme Court’s Stance and Its ImplicationsBruce highlighted a crucial Supreme Court ruling that set clear boundaries for tax deductions related to life insurance. This landmark decision explicitly stated that deducting premiums or interest on life insurance loans is generally not permissible when the insured party directly benefits. The reasoning is straightforward: since you or your estate will eventually receive these premiums back in the form of a tax-free death benefit, the premiums do not represent an actual financial loss or expense that justifies a tax deduction.Understanding this ruling can save you from potentially costly mistakes and help you align your tax strategies with IRS expectations.Strategic Ways to Indirectly Deduct PremiumsDespite the restrictions, Bruce and I discussed legitimate and strategic methods to effectively reduce taxable income and indirectly finance life insurance premiums:Employing Family Members: Bruce pays his father for legitimate business-related marketing tasks. As his father falls into a lower tax bracket, this transaction reduces Bruce’s taxable income and generates additional cash flow, indirectly supporting life insurance premium payments.Paying Your Children: Another powerful strategy is employing your children within your bus...
Securing generational wealth has never been more critical in today's rapidly evolving financial landscape. It’s not just about safeguarding our financial future; it's about leaving behind a legacy that can provide security and opportunity for generations to come. In this episode, we dive into the Family Banking Formula concept on The Money Advantage podcast. The insights are empowering and transformative, and I’m excited to share them with you.https://www.youtube.com/live/FZTDxocCGwYWe will guide you through the key strategies discussed in the podcast, from the concept of the family banking formula to the strategic use of whole life insurance. My goal is to equip you with the knowledge and motivation to take control of your financial future, ensuring that you not only secure wealth for yourself but also create a lasting legacy for your family.The Power of the Family Banking Formula: Building a Financial LegacyGenerational Wealth Through Whole Life Insurance: A Strategic AssetPersonal Banking Within the Family: Creating a Private Financial EcosystemThe Mechanics of the Family Banking Formula: How It WorksLeveraging Life Insurance for High-Net-Worth Wealth BuildingStability and Risk Management: The Strength of Insurance CompaniesTake Control of Your Financial Future with the Family Banking FormulaThe Power of the Family Banking Formula: Building a Financial LegacyThe core idea behind the family banking formula is to take control of the banking function in your life instead of relying on traditional banks. We use specially designed whole life insurance policies to manage our family bank. At the heart of how we have personally implemented this concept is the Infinite Banking Concept (IBC), which is a strategy that allows individuals to become their own bankers.One of the key benefits of family banking is the ability to pool resources within the family. Imagine a system where you and your family members can borrow money from the family bank to fund various endeavors, whether it’s starting a business, paying for education, or purchasing a home. By doing this, you keep the wealth within the family, allowing it to grow through uninterrupted compound interest. This approach not only benefits you and your immediate family but also sets up future generations for financial success. Successful family banking isn't just about having the right financial structures in place—it's about adopting the right mindset, teaching future generations financial literacy, and providing accountability and mentorship, which are crucial for making the most of family banking.Family banking offers unparalleled access to liquidity, better returns, and reduced taxes. But more importantly, it fosters a mindset that views the family as a cohesive financial unit and promotes long-term financial independence.Imagine your family as a corporation, where each member plays a crucial role in building and maintaining financial health. By pooling resources and making strategic decisions together, your family can achieve financial goals that might seem out of reach if tackled individually. This approach strengthens family ties and lays the groundwork for a legacy of wealth, value creation, and financial literacy that can be passed down through generations.This fits well with the definition of legacy in my book Seven Generations Legacy: Design a Multigenerational Legacy of More Than Money. The definition is: “The character, values, and financial means to live life on your terms that are modeled, taught, stewarded, and given from one generation to the next.” To take it one step further, a perpetual legacy is family wealth and flourishing that grows with each successive generation.Generational Wealth Through Whole Life Insurance: A Strategic AssetOne of the podcast's most impactful revelations is the strategic use of whole life insurance to build and preserve generational wealth. Unlike term life insurance,
Is the age of short-term rentals over? If you ask Marilynn Taylor, who coaches investors on successful short-term rental investments, the answer is a resounding no. All it takes is a true understanding of the market and the customer who is seeking a short-term rental. https://www.youtube.com/watch?v=oM80zjphe60In this insightful conversation with Marilynn, we learn how her investing paths all led back to short-term rentals over and over, thanks to her unique ability for interior design and hospitality. She was in the game long before the rise of Airbnb, and she has stayed successful in the marketplace because she knows what the upstarts in the market forgot---quality matters. Marilynn walks us through the ups and downs of short-term rentals, what it takes to be successful, and how to get involved in the space in a way that works for your life's vision. For an inside look at the world of short-term rentals, tune in now!Airbnb and the Rise of Short-Term RentalsShort-Term Co-HostingHeed RegulationsInfinite Banking and Short-Term RentalsAbout Marilynn TaylorConnect with Marilynn TaylorBook A Strategy Call[05:45] “For some people, the world of finances, real estate investing, and all of that is because they just want to get rich. But if we really back that down for a minute and ask ourselves why we want that, I think that the answer, for the majority of people, is they want security. They want to live a nice life. They want to not feel stressed about going out and buying groceries or giving their kids a ballet lesson.”Marilynn was heavily motivated by her external circumstances, and she knew that she wanted to break the cycle of financial troubles and challenge her family’s mindset that being rich meant you were greedy. While Marilynn began her career as a professional dancer and later a makeup artist, her path eventually led her into real estate investing, which eventually evolved into interior design. One of her early properties was in Cape Cod, and the thing to do was turn it into a short-term rental. After doing some research, she furnished and decorated that property, as well as a second one, and discovered she had a knack for interior design.Her path also led her to being featured on HGTV, and at one point Marilynn believed she would be a house flipper. The lifestyle, however, didn’t suit her, and so she returned to the short-term rental space. Now, many years later, Marilynn coaches other investors on the short-term rental game.Airbnb and the Rise of Short-Term RentalsMarilynn got into short-term rentals before Airbnb was on the scene, and that company certainly transformed the market in many ways. Marilynn even resisted Airbnb for a long time because it took the personal touch out of short-term rentals. All communication happens online or in-app, and it creates barriers between you and your host.[12:53] “Now, what I think a lot of people see when they see social media content about short-term rentals—especially since Covid—it was a gold rush during that time. And so many people rushed into short-term rental as a get-rich-quick scheme. It was just a cash cow, and it didn’t matter where they bought, where they invested, how they invested, what they even put out into the market—they were just going to bring money in. And for a year and a half or two, that was true. But the harsh reality of the actual industry has slapped a whole lot of investors in the face at this point.”The reality? You have to put quality out there, and you have to provide value. Now that the market is saturated, it’s not enough to have just any old room with a bed. People care about their location, the amenities, and more. The market is saturated with places that are filled with cheap accommodations and little to no care, and people are waking up to that. That’s not what they want anymore. [15:30] “What I recommend to people when you’re searching for what is the right type of real estate investme...
What happens when you balance rigorous research with actionable steps in financial education? Drawing inspiration from Nelson Nash’s teachings and Becca Wilhite's book "Beaver Bankers," we explore how building your own financial dam can help you navigate the overwhelming flood of social media content. We’ll highlight the importance of wisdom over information and how to create a solid understanding of the Infinite Banking Concept (IBC).https://www.youtube.com/live/TXRrkhh-yXYDiscover Becca Wilhite's introduction to whole life insurance in 2020, which challenged her previous beliefs shaped by Dave Ramsey and led her to embrace the principles of the Nelson Nash Institute. This pivotal moment not only transformed her financial strategy but also inspired her to write a children's book, Beaver Bankers, that cleverly uses the analogy of beavers building dams to teach financial stability and security.We also tackle the hotly debated topic of Dave Ramsey’s financial advice versus the Infinite Banking Concept. While Ramsey’s methods have undoubtedly helped many escape debt, our discussion highlights the limitations of his narrow focus on mutual funds. Becca’s dedication to mastering and teaching IBC emphasizes the importance of mentorship in making complex financial concepts accessible. We wrap up with a fascinating look at how life insurance can be strategically used for generational wealth. Tune in for a thought-provoking episode that promises to reshape your perspective on financial strategies.Dave Ramsey and IBCBeaver Bankers Book Reveals the Secrets of IBCBringing Kids on Board with BankingBook A Strategy CallDave Ramsey and IBCDepending on who you ask in the IBC community, Dave Ramsey is a hot topic. After all, he’s staunchly against whole life insurance and IBC strategies. However, our take is a little less extreme. He can’t be a total scam, or else he wouldn’t still be doing what he’s doing. What Dave is good at is helping people get out of debt and build the discipline necessary to be good candidates for IBC. He’s just not a great wealth builder. But when you realize that, you realize he’s not a bad guy. Becca’s views were shaped early on by Dave Ramsey until she realized that there was a lot of merit to the Infinite Banking space. To get there, it required an open mind. [14:21] “If you would be curious enough to maybe spend a few hours reading a book, I think you might discover—if we could all have a little bit of humility—hey, I might not be right. And these things that I’ve thought and been taught my whole life, there may be a better way.”Don’t be afraid to learn new things, adopt a beginner’s mindset, and stretch the boundaries of what you know. Knowledge cannot harm you, it can only make you a deeper and more critical thinker. This is how Becca grew in her understanding, and what led her to becoming an IBC Practitioner in her own right.Beaver Bankers Book Reveals the Secrets of IBCSome people are good verbal communicators, others are good written communicators. Becca happens to be great at communicating concepts and ideas with the written word, as evidenced by her children’s book. This endeavor was not something Becca predicted for herself, and yet one day she found herself wondering if there were ways that nature could tell the story and principles of IBC. It was this line of thought, and her faith, that led her to researching beavers. It was just a little inkling in the back of her mind that she knew was divinely planted, so she followed through. At the beginning of her research, all she really knew was that beavers built dams. Interestingly, the reason that they build the dams is to create a more favorable environment for themselves. Beavers aren’t that great on land, and they can’t really thrive in rushing water, so they build dams. The dam turns fast-flowing water into a pond that’s ideal to live in. It provides protection, security, food, shelter,
What sets apart the people who are wealthy and successful from those who struggle with money their whole lives? What are the Key Habits of Rich People?It’s not luck. Some people were familiar with wealthy habits, and some learned them.Today, we’re talking about the fundamental habits and disciplines of an ordered life.https://www.youtube.com/live/B8sUIodCLusWhat if the key to your financial and relational success lay not in luck but in your daily habits? Join us as we challenge the notion that success is merely a result of favorable circumstances. We uncover the transformative power of self-discipline, self-awareness, and deliberate choices. Through insights from "Atomic Habits," we delve into how significant, transformative habits can set the foundation for broader success and why surrounding yourself with success-oriented individuals can be the game-changer you need.In a touching conversation with my 13-year-old daughter, we debunk the myth that self-improvement means inadequacy. Bruce shares his wisdom on the ongoing nature of growth and learning, stressing the importance of new experiences. Drawing from Rabbi Daniel Lapin's holistic approach, we discuss how progress in finances, faith, fitness, friendships, and family are intricately linked, contributing to a balanced and successful life. This holistic model underscores that improvement in one area can create positive ripples across all facets of your life.Discover why an abundance mindset is crucial for growth and wealth in our discussion on intentional living. We'll share how gratitude and viewing tasks as privileges can shift your career and personal growth trajectories. Learn from the financial habits of rich people, such as cash flow awareness and strategic investments, and see why building a self-sustaining business through teamwork is essential for long-term success. With practical steps for setting a long-term vision and focusing on significant goals, this episode is packed with actionable insights to help you achieve true financial independence and personal fulfillment.So if you want to discover the thinking, action, and strategies that separate the top 1%, tune in now!Take Responsibility and Work on YourselfHabits of Rich PeopleAbundance MindsetGet Your Priorities StraightWealth Takes TimeCash Flow AwarenessPay Yourself FirstFocus on What You Can ControlBook A Strategy CallTake Responsibility and Work on YourselfFor better or for worse, you are responsible for the outcomes of your life. Taking responsibility of that is the first step toward a “wealth” mindset. So what does it mean to take responsibility? That can look like making different choices, forming new habits, doing research and due diligence, and so much more. I think, often, people conceptualize taking responsibility in a negative context. Many people view it as owning up to your actions when taking responsibility can also be a positive thing. It’s about taking ownership of everything you do so that you’re living life consciously and intentionally. When you’re responsible with your actions, you’re informed and empowered, which yields excellent results. If you want to go the way of the wealthy, everything starts with responsibility. Assume responsibility for how you think and what you do, and you’ll start seeing positive results.[06:00] “Taking responsibility means recognizing that you can’t blame others, you can’t have excuses. It’s taking ownership of your life.”Habits of Rich PeopleSo what is it that sets the wealthy apart from your average person? It's the habits that they've collected over time that help them live life more abundantly. These habits of rich people are all small pieces that contribute to a larger picture of hard work, innovation, a desire to create value, and strong principles.[08:46] “It’s not that you need to change to become valuable; it’s that when you recognize your worth and your value,
Infinite Banking has the potential to transform your family's financial life. However, as this powerful financial concept has risen in popularity, so have the messages that deviate from the original design and intent. Understanding infinite banking as Nelson Nash intended becomes all the more important, as it allows you to recognize the worst infinite banking mistakes.https://www.youtube.com/live/T_2v5vubeLYIn order for you to reap the greatest benefits of Infinite Banking, you have to identify these attractive half-truths about Infinite Banking, so you can steer clear of problems and instead build your financial house on sound fundamentals.Discover how to sidestep common pitfalls, from misinterpreting policy illustrations to mismanaging premium payments. This episode provides a detailed examination of Nelson Nash's foundational principles, illuminating how deviating from his original design can undermine your financial strategy. Navigate the complexities of selecting the right life insurance policies and managing cash flows with confidence. We debunk myths about early cash value and illustrate the importance of balancing safety, liquidity, and growth for optimal wealth management. Learn practical strategies for planning ahead, so you never miss a premium payment and maintain the integrity of your policy.This episode is all about proactive action and long-term thinking, giving you the tools to confidently implement the infinite banking concept and maximize your wealth. Join us and transform your financial approach today!What is Infinite Banking?Worst Infinite Banking Mistakes1. Comparing Illustrations2. Not Planning Ahead to Pay Premium3. Trying to Guarantee the Future Before Starting4. Not Using Whole Life Insurance5. Focusing Only on Cash Value6. Using It to Pay Off Debt7. Using All Available Cash Value8. Viewing It as a One-time Event9. Not Getting StartedBook A Strategy CallWhat is Infinite Banking?The Infinite Banking Concept, coined by Nelson Nash, is the idea of taking control of the banking function in your life via whole life insurance with a mutual insurance company. The banking function primarily refers to financing, because we all have a need for capital, and how you obtain that capital can make a major difference in your bottom line. By accumulating your capital outside of the banks, you can finance your own purchases and investments. Whole life insurance is simply the ideal vehicle or “warehouse” for storing said capital. So why is this better than working with a bank? The answer is control. When you work with banks, you have very little control and often have to jump through hoops to get access to cash. In fact, there are many reasons a bank might deny you a loan, regardless of your ability to repay the loan. Bank terms are also rigid and inflexible. So what if you could call the shots, right down to your amortization schedule? That’s what Infinite Banking allows you to do. It puts you back in the driver's seat.Worst Infinite Banking MistakesOne of the major issues is that there’s a lot of Infinite Banking misinformation out there. In part, this comes from detractors, and yet it can also come from well-meaning people who don’t have a fundamental understanding of IBC the way Nelson taught it. That’s why it’s really important to vet your information sources. Ask yourself:What’s their skin in the game, what do they get from discrediting IBC?How do they know about IBC and what’s their relationship to it?How long has this person been practicing IBC, and who are their mentors?Are they an IBC Practitioner, certified through the Nelson Nash Institute?In an effort to combat some of the misinformation out there, we’ve compiled a list of the 9 worst Infinite Banking mistakes we see people make, so that you can learn from them.1. Comparing IllustrationsOne of the worst Infinite Banking mistakes we see people make is that they’re comparing ill...
Do you want to give your kids the best possible chance at life, but you’re afraid of spoiling them, or worse? Are you concerned that leaving an inheritance will only end in disaster? Learn why "leaving an inheritance to my great-grandchildren" is a good thing and how to do it.Many parents are undecided about whether they want to leave an inheritance to their children. They fear raising ungrateful “trust fund babies” or leaving their kids with money they cannot possibly be good stewards of. Some parents didn’t receive an inheritance at all, so they don’t think their own children could possibly need it.https://www.youtube.com/live/x-tY0oVUqcUBut what if you could leave an inheritance not only to your children but your grandchildren, and even your great-grandchildren? It’s not about how much money you have, it’s about how you prepare your children to take good care of that money and become value creators in their own right. Today, we’re talking about how the Marshall family approaches money and inheritance, and how you can begin preparing your kids to be great stewards of your legacy now and later. Learn how and why I am leaving an inheritance to my great-grandchildren, and you can too. Tune in now!The Inheritance SpectrumThe Marshall Family ValuesHave Your Kids Create ValueLeaving an Inheritance to My Great-GrandchildrenFinancial Wisdom for KidsBook A Strategy CallThe Inheritance SpectrumLeaving an inheritance to your children or grandchildren can be a tricky subject to navigate. There are many pros and cons to both leaving or not leaving an inheritance that has a lot to do with HOW you go about it. In our case, we think inheritance is a spectrum of sorts. On one end, you’ve got those who are just dumping money on the next generation without much preparation or care. On the other side of the spectrum, you have people who are intentionally withholding an inheritance for various reasons. Then, you have everything in between. The side that is against leaving an inheritance generally comes from two schools of thought. Some people believe that they weren’t left anything, and so their children don’t need it either. They want to be selfish with their money, and they want their kids to figure it out on their own. The other camp is the parents who don’t wish to ruin their kids by spoiling them or leaving them with a cushy life without developing the work ethic or business savvy to keep it.Both sides of this spectrum are pretty extreme and can be damaging. There’s a middle ground that we advocate for that can actually ensure that your legacy lasts for generations, and that’s by building something to leave your children while also raising them to be good stewards of it. This could include involving your kids in the family business, teaching them good money principles, and making sure that they know how to continue growing their assets. By doing this, you create a generation that can do the same with their children so that many generations down the line your family is still prospering. [09:50] “It’s not the money that causes the problems. The challenge is money brings up all of this emotion… we attach it to our identity, our sense of self-worth.”The Marshall Family ValuesOne of my family’s values is freedom. Most people conjure up the same mental image of freedom, but there are actually two major meanings of the word freedom when we go back to Hebrews in scripture. There’s a good form of freedom and a bad form of freedom. The way that most people conceptualize freedom is to be free FROM something—for example, freedom from obligations. This is why many people think of retirement as one of the ultimate freedoms because they won’t be tied down or expected to do anything. The other kind of freedom is the freedom to choose—not to be free of obligations, but to pick the obligations that matter to you and develop accordingly. This choice is about service,
Unlock the secrets of mastering the tax benefits of whole life insurance with our latest Money Advantage podcast episode. We promise you’ll gain an in-depth understanding of tax laws related to life insurance strategies, like the pivotal 1988 government decision to limit cash value life insurance investments due to their tax perks. By diving into the historical context of the Tax Reform Act of 1986 and the Revenue Act of 1987, we uncover the intricate relationship between these laws and the economic climate of the time, helping you make smarter financial decisions today.https://www.youtube.com/live/0XcaTFWcOhMTravel back in time with us to explore how Nixon’s 1974 move away from the gold standard set the stage for inflation and the creation of IRAs and 401(k)s. These financial products shifted funds from whole life insurance, leading to the popularity of universal life policies. Our discussion reveals how high interest rates and regulatory responses like the 1988 Tamra Act reshaped the life insurance landscape, ensuring it remained a protection tool rather than a tax haven. The 1979 FTC report’s critique of whole life insurance also played a significant role, challenging traditional perceptions and influencing market dynamics.We round off the episode by dissecting the Modified Endowment Contract (MEC) and the Tamra Act’s regulatory impacts on life insurance policies. Discover the nuances of the one-year and seven-year rules, the scenarios leading to a policy becoming a MEC, and the resulting tax implications. We delve into circumstances where intentionally MEC'ing a policy could be beneficial, such as for estate planning or achieving better returns than traditional banking options. This rich historical insight equips you with the knowledge to navigate today’s complex financial landscape with confidence.Tax Loopholes vs. Tax IncentivesWhole Life Insurance and TaxesThe History of Whole Life Insurance and TaxationWhat Does it Mean to Be a MEC?Applying Whole Life Insurance tax Benefits TodayBook A Strategy CallTax Loopholes vs. Tax IncentivesTo kick off this conversation, let’s get something clear: tax loopholes are not actually loopholes. The word “loophole” has a negative connotation, and if often used to suggest that people who use tax incentives to reduce their taxes are doing something sneaky or unethical. The reality is that the IRS writes tax law to be as specific and intentional as possible, and those “loopholes” are actually intentional incentives from the government.Tax incentives work to provide tax credits or breaks for investors who can do things that the government does not want to spend their own money on. For example, there are many tax incentives in real estate because housing is a constant and prevalent need. If housing cannot be provided by landlords, the government may have to provide more housing, and so the government creates tax incentives to have investors take the lead. Tax breaks don’t exist by accident. They are purposeful and are designed to get investors to take specific actions. Whole Life Insurance and TaxesWhole life insurance is a popular “tax-advantaged” asset because you can technically access your cash in a tax-free way. You can do this through a policy loan, which must still be paid back, or by withdrawing only up to your base premium. Otherwise, you can still have a taxable event.That being said, whole life insurance has long been a popular strategy for tax purposes, and in fact used to be even more beneficial from a tax standpoint, until the IRS got involved. And while there are some limitations, now, whole life insurance is still extremely advantageous from a tax standpoint.The History of Whole Life Insurance and TaxationUntil the 1960s, whole life insurance was the premier savings vehicle for American families. It provided great flexibility and protection and was a powerful tax advantage.
Do you want to grow and scale a family business, but family business dynamics are getting in the way? https://www.youtube.com/live/vZkpINzoFtsUnlock the secrets to harmonizing family business dynamics and business operations with Savannah Suttle from Schema Consulting to reveal the powerful impact of psychotherapy and marriage and family therapy techniques on family-run businesses. You'll learn how to navigate the complex interplay between evolving family roles and business practices, ensuring a cohesive approach to tackling both personal and professional challenges, especially during generational transitions.Discover the keys to balancing business needs with employee well-being as we tackle the intricacies of role reassessment and transparent communication. Savannah shares her wisdom on creating win-win scenarios where individual growth and business success go hand in hand. We discuss the critical importance of addressing difficult decisions head-on, fostering a culture of open dialogue that prevents fear and conflict avoidance, and underscoring the necessity of placing the right people in the right positions for maximum team morale and efficiency.Finally, we explore the essential strategies for scaling family businesses, emphasizing radical transparency and effective communication. Savannah guides us through the pitfalls of over-relying on long-standing employees without proper succession planning and highlights the importance of nurturing the next generation's authenticity and innovation. From strategic leadership transitions to fostering a shared vision, this episode equips you with the tools to ensure your family business remains vibrant and appealing for future generations, creating a lasting legacy of wealth and collaboration.So, if you want to discover how your family businesses can navigate complex dynamics and turn challenges into opportunities to grow your reach, impact, and team ... tune in now!How Behavior Therapy Leads to Family Business DynamicsNavigating Family Business GrowthMaking Tough DecisionsPassing Businesses from Generation to GenerationBook A Strategy CallHow Behavior Therapy Leads to Family Business DynamicsWhile now Savannah works with family businesses, she got her start in behavior therapy, specifically marriage and family therapy. What’s unique about this field is that it’s a structural form of psychotherapy—if you can change the structure of the family, you can change the dynamic of the family. So changing one piece of the system will change the whole system. This structure is very close to, and even overlapping, with business structures. And if you have a family business, the dynamics are even more entwined. What Savannah found is that some of her clients who had family businesses had cemented some of their family dysfunction into their business operations. The problem is that at one point the dysfunction was actually functional, and served a positive purpose at one point. But then, over time, the business/family outgrew those roles or procedures, and yet they left them baked into the process. Those dysfunctions are then difficult to remove because the family has not come to terms with who they have become and what they need. [04:53] “Who you were when you started the business is probably not who you are now. And what you needed then is probably not what you need now.”Navigating Family Business GrowthOne of the ways in which family businesses may fail to adapt is how they scale. It’s one thing to manage a team of 10 people—especially when you know and love them—and another thing to manage a team of 150 people. The challenges of a team of 150 are different even from a team of thousands. [09:32] “The problem is when you start scaling and you’ve got a lot of people now, it’s usually a matter of headcount. Then all of a sudden you only have 24 hours in a day and you can’t talk to everybody and build relationships with everybody.”
Do you have a life insurance policy and want to access your cash reserves?Today, we're discussing the science of whole life insurance loans. We'll show you why a whole life insurance loan is the safest investment imaginable for the life insurance company and why a whole life insurance policy loan is not a debt to the policy owner. https://www.youtube.com/live/jpoMCZrpCXIThis is an in-depth exploration of Infinite Banking and whole life insurance policy loans. Understand how leveraging your whole life insurance policy can offer superior benefits over traditional bank loans, while allowing your savings to grow uninterrupted. We'll break down the step-by-step process of requesting and repaying loans against your policy, debunking the myth that taking such loans equates to being in debt.Discover the power of participating in mutual insurance companies, where you can benefit from dividends as part owners. Learn how using your cash value as collateral for non-recourse loans presents a low-risk, high-reward strategy, and compare the straightforward underwriting process of insurance loans to the more cumbersome bank loans. We'll also discuss the safeguards mutual companies put in place to ensure financial stability and how they effectively manage loan requests.Finally, we delve into the principles of Nelson Nash's Infinite Banking Concept, emphasizing long-term thinking and strategic loan repayment to optimize your policy benefits. We'll clarify the nuances of borrowing against whole life insurance policies, explain the importance of maintaining your contract's integrity, and share best practices for utilizing these loans effectively. Whether you're new to Infinite Banking or looking to refine your approach, this episode is packed with actionable insights to help you take control of your financial future.So, if you want to understand whole life insurance policy loans, how to take a loan against whole life insurance policy, why the life insurance company is willing to offer them, how to repay them, what happens to your policy with outstanding loans, and when you should reconsider, tune in now!What is a Whole Life Insurance Loan?Loan Safety in InsuranceReading a Policy IllustrationTaking a Whole Life Insurance LoanWhere Does the Interest Go?Book A Strategy CallWhat is a Whole Life Insurance Loan?A whole life insurance loan, also called a policy loan, is a loan FROM the insurance company with your cash value acting as collateral. The reason this type of loan is powerful is because it allows you to use the sum of your cash value without actually using it. Since you’re using the life insurance company’s money, your cash value is free to keep compounding with interest and dividends. This can make a major difference on the growth of your account.While you do have to pay the loan back, you have much more flexibility than with any other loan type. You can make your own payment schedule, and you do not have to apply or meet any requirements, and as soon as you free up your cash value again (releasing the collateral by paying the loan balance) you can take another loan. Loan Safety in InsuranceBecause of the flexibility of whole life insurance loans, they’re incredibly “safe” loans to have. Your loan is always fully collateralized, which means that if you cannot pay the loan, the insurance company simply won’t release that collateral. And while that will of course reduce the cash value that you can access, your account still grows with new premiums, interest, and dividends. And one day, if you do repay the loan, that collateral does get released. This means that if you experience hardship or need to pause your loan payments, you can do so without worrying about defaulting, running your credit score, or otherwise facing financial obstacles. If you happen to die with an unpaid policy loan, the death benefit is simply paid to your beneficiaries minus any loan balance and interest.
Today, we're talking with Anna Kelley, impact real estate investor, multifamily operator, and real estate mentor and coach, about the state of real estate investing.https://www.youtube.com/live/7AneSvWF6tQWith today's federal debt and high inflation environment, Anna cautions that it's time to be in capital preservation mode, not focused on cash flow and appreciation. So if you want to see how to invest during times of uncertainty, and understand the signs of the times to determine when to use value add vs. buy and hold strategies in different economic cycles, tune in now!With a wealth of experience spanning multiple economic downturns, Anna offers invaluable advice on understanding macroeconomic trends and adapting investment strategies. We also tackle the realities of working from home, the normalization of disruptions, and how the professional landscape has evolved post-COVID-19.Join us as we dissect the intricate dynamics of today's real estate market. Anna Kelly shares her journey from humble beginnings to becoming a prominent real estate expert. We delve into the risks and rewards of various investment strategies, from syndications and non-traded REITs to distressed commercial properties, emphasizing the importance of informed decision-making amidst rising interest rates and economic uncertainty. Through real-world examples, we explore the impact of social media on investment behaviors and the necessity of a cautious, well-researched approach.Understanding Real Estate Investment CyclesWhere Are We Now?Tips for Commercial and Residential Real EstateAbout Anna KelleyConnect with Anna KelleyBook A Strategy CallUnderstanding Real Estate Investment Cycles[14:22] “It doesn’t matter how smart you are, it doesn’t matter how good your job is [or] how much you know about investing, and how much you know in real estate. If you’re not really paying attention to the macro signs that things are shifting, you can make some really bad decisions about debt and go into it at the wrong time. And you can make some really bad decisions about the stock market and anything you invest in.”In 2009, Anna Kelley decided she would never be blindsided by the marketplace again. She took the initiative to learn about market cycles and how to pay attention to major shifts in the market. Now that she understands the market cycles, she finds that Warren Buffett’s advice is timeless and true: “Be greedy when everyone’s fearful, and be fearful when everyone’s greedy.”At a very high level, investment cycles begin at a “trough,” or a recession—basically when things have not been going well economically. This is the point at which interest rates drop in an effort to get people spending again. This recession period can generally last anywhere from 10-18 months, and then the following 2-3 years are often when the economy wakes back up again and people start to feel comfortable. It's not an overnight process, Kelly shares, but one that takes time. People have trouble trusting the economy at first, so it takes a while to build that trust back up.Then, you get to the expansion period. This is the peak of the investment cycle, and while it can seem like a great thing, it also signals that the next recession is on the way. It might take a few years, but you’ve got to be aware of what is going on around you to take advantage of the cycles.[21:11] “At the moment that there is absolute panic and everybody’s afraid, that is the maximum point of opportunity.” The reason this part of the cycle is rife with opportunity is that there’s less competition, and lots of people aren’t thinking about opportunity. If you can buy when things are at a low point and just hang on to them, you’ve got a leg up on the market. In Anna’s personal opinion, we haven’t seen the end of the recession yet, we’re still at the top of it, and it will likely take some years to recover from that. Despite that,
Inflation causes everything to feel more expensive, so what do you do to protect your money from inflation? Today, we'll explore the link between inflation and fractional reserve banking, and how Infinite Banking is the sound money solution.https://www.youtube.com/live/ay4aDG2phBgA thought-provoking journey through inflation, fractional reserve banking, and the revolutionary concept of infinite banking. This episode promises to demystify how the traditional banking system and increased currency supply fuel inflation, challenging widespread misconceptions. You'll gain a deeper understanding of inflation's root causes by contrasting liberal views with Austrian economic theories, and learn how your everyday choices can influence market prices.Next, we shift gears to tackle the often-overlooked topic of healthcare pricing elasticity. Hear real-life stories about how informed consumer decisions can lead to significant savings on prescriptions and medical procedures. Discover practical strategies for price negotiation without confrontation, and understand the ripple effects of increased money circulation on the economy. We'll also discuss the impact of government policies like minimum wage hikes on business expenses and overall market pricing.Finally, explore a smarter financial strategy that sidesteps the pitfalls of fractional reserve banking. By leveraging whole life insurance policies, you can protect your assets from inflation and achieve greater financial security. Rachel and Bruce explain the benefits of mutual insurance companies, which maintain robust reserves, and how these practices can create a more stable personal economy. This episode is packed with insights and actionable advice to help you take control of your financial destiny and build a prosperous future.So, if you want to learn how to ensure more economic stability and prosperity, tune in today!What is Inflation?The Nature of BankingResources: Book A Strategy CallWhat is Inflation?We all feel the effects of inflation, but what is it really? Inflation is when a dollar becomes less and less valuable. Inflation is why bread used to cost a couple of nickels and now costs more than a couple of dollars. And one of the major reasons for inflation is that our banks continue to pump more dollars into the banking system, decreasing the overall value of a single dollar. Fractional reserve banking—our current banking system—allows banks to keep only a fraction of their customer’s money in reserves. This means that banks can do more business than what they actually have available. While this can stimulate the economy on some level, this also means that money is being created out of thin air. And when this happens en masse, it can create major instability. After all, the more money in circulation, the more prices begin to creep up to match.The Nature of BankingLet’s look more closely at how banking, as most people know it, works. If you deposit $1,000 in the bank, your institution is not required to have that exact amount in a vault somewhere just for you. In fact, they’re not even required to have that $1,000 at all. They’re only required to have a fraction of that on hand, right now it’s somewhere in the ballpark of a 1 to 10 ratio. So of the $1,000 you’ve deposited, the banks only have to keep $100 on hand. When you take a loan from the bank, they’re “creating” that loan out of dollars that do not exist in their reserves. And then you’re paying it back with dollars that do exist. Just the actions of taking loans with our banking institutions are inflating the money supply. Then what happens if you want to liquidate your account, if the banks only have 10% on hand at a given time? These are all things that can make banking tenuous. And yet, by taking control of the banking function with whole life insurance, you can mitigate a lot of this harm. When you take policy loans, for example,
Are you trying to decide which type of life insurance to buy? You want to protect your family in case something happens, so how do you do it best? Whole life insurance is often rejected as expensive and a poor "investment," while mainstream opinion leans in favor of the "buy term and invest the difference" strategy, which involves opting for cheap insurance coverage and investing the dollars you save.https://www.youtube.com/live/QDyfZjPaMgcWe'll guide you through the compelling story behind the "Buy Term and Invest the Difference" strategy, a concept born from Art Williams' personal experiences in the late 1960s. By examining the benefits and pitfalls of this popular approach, we empower you to make informed decisions tailored to your unique financial goals and risk tolerance.Explore the vital distinctions between whole life and term life insurance, and learn why a one-size-fits-all solution may not serve your best interests. Through relatable analogies and real-life examples, we break down the often misunderstood aspects of life insurance, helping you see the bigger picture. We also address the psychological and financial barriers that many face when considering life insurance, sharing insights from LIMRA and Dr. Wade Pfau on how whole life insurance can provide a stable safety net during economic downturns.Finally, we delve into the concept of becoming your own banker, illustrating how this alternative perspective can offer unparalleled financial flexibility and security. By understanding the sequence of returns risk and leveraging whole life insurance loans during market downturns, you can protect your investment portfolio and ensure long-term financial stability. Join us for an episode packed with actionable insights and strategies to enhance your financial planning journey.The Myth of “Buy Term and Invest the Difference”Breaking Down Insurance, Investments, and MoreCommon Pitfalls of Investing the DifferenceIs Term Insurance Actually Cheaper?Who is Buy Term and Invest the Difference For?Book A Strategy CallThe Myth of “Buy Term and Invest the Difference”The idea of “buy term and invest the difference” is really common in the financial sphere, because on the surface it seems to make a lot of practical sense. After all, you’re being told “buy cheap insurance to get the protection, then build your wealth in investments.” The problem is that this strategy doesn't work with certain goals. There isn't a singular, perfect insurance strategy to trump all else. There are myriad ways to get coverage, depending on what you want out of your dollars. Many people believe that Art Williams is the origin of this phrase; after his father passed, the whole life insurance death benefit didn’t seem as large as what a term insurance policy could have been, and for less money. He felt strongly that his father had been sold the “wrong” policy, and so his life’s mission became to get rid of whole life insurance. Curiously, he partnered with a mutual company, and the phrase “buy term, invest the difference” was born. Breaking Down Insurance, Investments, and MoreSo what are the elements of “buy term and invest the difference”? It may sound like there are two things at play here, but really there are many factors to consider. While of course there’s term insurance and stocks (or other investments, technically), you have to ask what that strategy is being compared to. And what that’s being compared to is whole life insurance. Whole life insurance is insurance that is with you for your whole life, and if done with IBC in mind, can also be used as a warehouse for your wealth. Whole life insurance is guaranteed to pay out no matter what age you die, and if you live to the “end” of the policy (called endowment), the death benefit gets paid directly to you. This is permanent insurance in the truest sense. Comparatively, term insurance is insurance that you only have for a portion of your life.
Do you want to make a difference that lasts for generations? If you have children or grandchildren that you want to benefit, bless, and uplift, you can make plans now to accomplish that priority.Before you start planning, though, there are two essentials you'll need. These two components will help you get started and follow through so that you complete your plans. https://www.youtube.com/live/KxXNLrJJwz0Rachel Marshall's near-death experience during childbirth was more than just a life-changing event; it was a wake-up call that transformed her perspective on the fragility of life and the urgency of planning for the future. This episode urges us to rethink our priorities and embrace a mindset that transcends personal gain to create a ripple effect of positive impact. Rachel's poignant story serves as a powerful reminder that our current mindset shapes our behaviors and results, urging us to seize our resources to make a meaningful, lasting difference for future generations.Join us as we explore how shifting from self-centered thinking to an impact-driven approach can revolutionize both our personal lives and professional endeavors. Rachel emphasizes the importance of building generational wealth and fostering family enterprises that serve not just ourselves but our descendants. We delve into the concept of creating multi-faceted wealth—encompassing financial, human, social, intellectual, and spiritual capital—using the ancient Iroquois' seven-generation perspective as inspiration. This episode is a compelling call to action to adopt long-term thinking and commit to creating value for others, laying the groundwork for a legacy that promotes human flourishing across generations.Tune in today to get equipped with the right mindset so you can ensure your efforts to provide for your children, protect your family, leave an inheritance, complete your estate planning, pass on family wealth, and train your children will leave a lasting impact.Personal Crisis to LegacyTwo Essentials for Lasting ImpactThe Decision to Create WealthThe 7-Generation LensBook A Strategy CallPersonal Crisis to LegacyIf you want to leave a legacy, make a difference, and leave the world a better place, you will have to think differently and become a different person to do it. Legacy wasn’t always on my mind; there was a time when I took my life and health for granted. It wasn’t until a personal crisis that I came face to face with reality: life is not guaranteed. After an already difficult birth, my situation took a turn when I began losing an overwhelming amount of blood, and I ended up needing a full blood transfusion. Our family was faced with the very real possibility that I would not make it. I'm grateful to be here today, but I'm also profoundly grateful for the complete shift that experience was for how Lucas and I approach life and legacy. Tomorrow is not guaranteed, do not wait to make positive change and prepare your legacy.[05:10] “The fact that our lives are not guaranteed makes us realize that we have power today while we have our mental faculties and our breath to be able to do so much that will impact the lives of our children and grandchildren beyond us.”Two Essentials for Lasting ImpactIf you’re ready to create lasting impact for your children, grandchildren, and many generations beyond that, you’ve got to change your mindset. It’s not as simple as it sounds, however. Our actions follow our thinking, so it’s critical that you’re not just changing your behaviors to try and achieve results. You’ve also got to change your mind. That way, you’re living and embodying the transformation you’re trying to achieve, rather than paying it mere lip service. [06:15] “If you just try to do the right tactics and strategies and figure out what the successful people are doing, and you just try to implement behavior… the challenge is you can exhaust yourself… when your mindset is still over...
Today, we're answering a listener question on maximizing financial windfalls:Can you do a future episode on what to do with a windfall? Specifically, the use of a premium deposit fund over many years and dumping it into a 7-pay or 10-pay policy. I would love to hear how this could be an option for inheritance or selling a business or property.https://www.youtube.com/live/cRRw5Hi_B90What should you do when a financial windfall lands in your lap? Whether it's from selling a business, a property, or receiving an inheritance, knowing how to manage and maximize a large influx of cash can be daunting. On this episode of the Money Advantage podcast, we tackle this critical question by breaking down strategic approaches tailored to individual financial goals and circumstances. Using the analogy of a sailboat, we explore how to incorporate additional funds into a well-balanced policy without risking instability or running afoul of modified endowment contract laws.Our discussion touches on the considerations for managing windfalls through life insurance policies. We look at the sustainability of funding new policies beyond the initial windfall and the implications of different funding durations, like 10-pay versus 30-pay options. The potential benefits of convertible term life insurance and practical steps for integrating significant windfalls into your policy are highlighted. You’ll gain insights into cash flow strategies and premium deposit funds, all aligned with long-term financial goals.Finally, we examine the benefits and pitfalls of various policy designs. From the "skinny base policy" with large Paid-Up Additions (PUAs) to the risks of prematurely hitting human life value limits, we cover it all. Our conversation also dives into the actuarial decisions that impact policy performance, emphasizing the importance of flexible policy designs to adapt to future changes.Can You Design a Policy to Store a Windfall?Policy Design for Maximizing Financial WindfallsUsing a Windfall to Pay Policy LoansFund an Investment FirstBook A Strategy CallCan You Design a Policy to Store a Windfall?One of the most common questions we get pertaining to windfalls—i.e. Unpredictable sums of money like an inheritance—is can you design a life insurance policy to plunk that money into? It’s a smart question, especially if you are currently implementing an Infinite Banking strategy. After all, if you already know that life insurance is your preferred asset for warehousing wealth, why wouldn’t you do so? So what’s the answer? Well, you certainly can design a whole life insurance policy to house a windfall, but you might not want to. At least, you might not want to put that money in via a lump sum. Otherwise, you run the risk of your policy turning into a MEC, or modified endowment contract. A whole life insurance policy can become a MEC by over-funding it and doing so means that it loses its designation as an insurance asset in the eyes of the IRS and it loses its tax advantages. Think of your life insurance premiums as a sailboat. The base premium is the boat itself, the hull. To put additional funds into the policy, you would add term riders, which would be like the mast of the sailboat. Then, the PUAs are like the sails. If the mast or the sails get too big relative to the base of the boat, it’s going to tip over. It won’t be efficient—becoming a MEC. If you're trying to design a policy now for a potential windfall later, you would be designing a policy with a "skinny base" in order to have room for PUAs later. But doing this creates an unstable policy. All of this is to say, you definitely want to add sufficient term insurance riders and PUAs in a policy, but be careful to keep it balanced for your personal goals. Some people may want to have a MEC, but it’s better to do so when you’re choosing to, rather than by accident or carelessness. Policy Design for Maximizing Financial Windfalls
When searching for an Infinite Banking policy, a common question is, which company will give me the best dividend rate? Today we dive into answering why dividend rates don't matter. The perception is that the highest dividend rate will turn out to be the best policy performance over time, ending up with the highest growth in your policy, and giving you the greatest financial benefits. https://www.youtube.com/live/kKpzquetov4But this is the wrong approach to building capital and becoming your own banker by using Infinite Banking to build growing, accessible capital you can use.Today we bust common misconceptions and highlight the various factors that influence your policy's dividends—from the guaranteed interest rate to the financial strategies of insurance companies—arming you with the knowledge to make savvy, long-term financial decisions.We also break down the all-important task of selecting the right insurance company for infinite banking. With a keen eye on the practices of various insurance companies, we emphasize the role of long-term stability and customer-focused service. Understand why the initial illustrations aren't the be-all and end-all, and learn the importance of a company’s conservative financial practices in sustaining your policy’s performance over time.Finally, we tackle the dynamic nature of dividend rates and how infinite banking principles can help you maximize the compounding growth of your cash value, even when borrowing against your policy. This episode is packed with practical advice on implementing infinite banking now to ensure your financial assets are secure and growing for future generations. Don’t miss out on these invaluable insights that go beyond the numbers to profoundly impact your financial future.To find out why dividend rates don't matter, and see how to avoid the dividend rate comparison trap that prevents you from having the greatest success with Infinite Banking... tune in today!Planning for Long-Term SuccessWhat Are Dividends?What Does the Declared Dividend Mean?Dividends and Contractual IncreasesWhy Dividend Rates Don't MatterBook A Strategy CallPlanning for Long-Term SuccessWhen you engage in the Infinite Banking Concept, it’s important to remember that you’re seeking long-term success—over your lifetime, but also for generations to come. Dividends can be a major part of that, but not in the same way you’ve been trained to think about them in the stock market. Dividends in the life insurance realm work a bit differently, and they may seem low to you if you’re used to chasing high rates of return. [4:32] “[The ‘Seven Generations Legacy’ is] this idea and this concept of being able to create something that you can benefit seven generations ahead. And the thinking required to do something of that proportion means that you have to put systems in place that you yourself cannot fully control. You’re putting them in motion, you’re being the impetus, the starting point, the spark that starts something.”What Are Dividends?The technical definition of a whole life insurance dividend is a refund of excess premium. This is often used to detract from the value of dividends because it’s “just money that you overpaid.” However, this is just a definition for IRS classification and is not the reality of dividends if you actually examine a life insurance policy. Because once you examine a life insurance policy, you’ll see that those designed for cash value growth will eventually have a cash value that exceeds all premiums ever paid to the policy. So how could you be overpaying?Dividends are a portion of the company's profits that you receive as a partial owner of the mutual company you have a policy with. The company uses income from your premium payments to make investments into assets like bonds. When the company profits, they must share those profits with policy owners, and that comes in the form of a dividend.
Family businesses have a shrinking lifespan. Families in business together face conflicts and challenges that have made it increasingly difficult to build a business that lasts generations.Yet Rob Ferguson, founder of Ferguson Alliance, says that family businesses can live to infinity with the right systems and tools. Today, we're discussing how the key components of communication, shared vision, and financials drive family business health. https://www.youtube.com/live/HZ1pR-ixHVYSo, whether your family business goals are solving family conflict and disruption, 10X growth, or acquisitions, tune in today to learn how to increase the strength and longevity of your family business.This episode peels back the layers on how to foster generational wealth and maintain harmony within family-run companies. The conversation homes in on the essential strategies for early and intentional planning for business succession, highlighting the common pitfalls and conflicts that can derail even the strongest family enterprises. With a wealth of experience, Rob guides us through the complexities of steering companies toward sustainable growth, ensuring they can withstand the test of time and the changing tides of business culture.Join us as we reflect on the shifts in family dynamics and their influence on the longevity of family businesses from the 1950s to our current global market. We weigh the tough decisions family businesses confront when choosing to prioritize the business or the family unit. Rob's expert perspective shines a light on how those who focus on the business side often enjoy greater longevity. Yet, he also emphasizes the unique strength that comes from integrating core family values into the business ethos, which can be a potent strategy for success across generations.The crescendo of our discussion centers on the art of succession planning. It's a delicate balance that requires giving the next generation both guidance and the freedom to choose their path while ensuring a clear separation of wealth transition, ownership transition, and leadership transition. We explore the profound impact of involving multiple generations in business conversations and the establishment of family constitutions and mission statements. With the wisdom shared by Rob, families are empowered to craft legacies that not only survive but flourish for generations to come.The Beginning of a PassionCreating Family Business LongevityFamily ValuesNavigating Conflict When Transitioning the BusinessAbout Rob FergusonConnect with Rob FergusonBook A Strategy CallThe Beginning of a PassionFifteen to sixteen years ago, Rob Ferguson was the CEO of a 5th generation industrial packaging company, with about 17 cousins involved in the business. Rob was brought in as the first non-family executive to get the business back into shape and sell it. While that was all in the works, Rob recognized that there had to be a way to prevent family businesses from getting to that point of “destruction,” in order to help more families keep their legacy alive and in the family.[08:20] “Family businesses in America as we know generate—I think it was right after the pandemic—they generated 78% of all the new jobs. 60% of GDP comes from family business. Almost all of our philanthropy donations come from family businesses. And then if you think about all of the innovation that we’ve seen and experienced, again, they started off as family businesses.”Ferguson Alliance was built from Rob’s passion for helping family businesses stay in business and keep the legacy alive. Creating Family Business LongevitySo what’s changing, and why is it important to keep fighting for family businesses in 2024 and beyond? So what is the major obstacle for family businesses? It’s getting families oriented around their “north star.” When Ferguson Alliance works with a new family business, the first thing they do is ask a very simple question wit...
Join the wealth revolution and see how understanding banks and banking allows you to create financial freedom by becoming your own banker.We're wrapping up our series on Nelson Nash's pivotal work on Infinite Banking, his book Becoming Your Own Banker.Unlock the secrets to becoming the master of your own financial destiny with our eye-opening discussion on 'Becoming Your Own Banker.' https://www.youtube.com/live/K2xm9EKp67QSay goodbye to the days of simply being a cog in the banking machine and hello to wielding Infinite Banking to your advantage. We wrap up our enlightening series by emphasizing the shift from passive consumer to proactive controller of your capital. Diving straight into the heart of financial empowerment, we unravel the misconceptions sold by social media 'experts' and emphasize the importance of understanding and solving the core issues, rather than getting lost in product illustrations. It's all about prioritizing saving over borrowing to secure your financial freedom.Bruce joins us to offer his insights into Nelson's critique of the banking and insurance sectors, and their reluctance to embrace practices that put you in the driver's seat of your financial journey. Discover the commitment required to build discipline and generational wealth, and the subtle art of respecting your own money as you would a traditional bank's. We also explore investment strategies for long-term growth, drawing inspiration from Warren Buffett, and delve into the importance of economic literacy for sustaining wealth. By the end of this episode, you'll have an arsenal of tools and resources to lay the foundation for a legacy of prosperity.The Arrival SyndromeWhat Does it Mean to Become Your Own Banker?Book A Strategy CallThe Arrival SyndromeOver the course of our year and a half spent dissecting Becoming Your Own Banker, one of the most stand-out lessons is to avoid “arrival syndrome.” Arrival Syndrome was Nelson’s term for thinking that you have everything figured out. And the problem with this mindset is that you become unwilling to learn, and often unwilling to revisit old ideas. And yet, there isn’t a single person who has everything all figured out. Arrival Syndrome is something to avoid whether you’re brand new, or you’ve been in an industry for decades. It is simply not a mindset that will serve you well. Even as Bruce and I dug into the book, we found ourselves seeing the same information in a new light, and we have both studied Infinite Banking for many years. Bruce himself studied with Nelson while he was alive. And so it really goes to show that you can always put yourself in a beginner’s shoes and learn something.What Does it Mean to Become Your Own Banker?A common misunderstanding about Infinite Banking is that you’re building your own bank. However, what you’re really doing is becoming a banker. By building cash value in a life insurance policy, you’re creating a pool of money that you have complete control over, that way you can be the one to assume the banking function, cutting out the middleman. Then, when you need access to capital, you don’t have to beg for it and convince an institution that you’re worth it. This means that you also get complete control over the financing terms, like when you pay it back, how frequently, and even how much. By assuming this kind of control in your life, you have a lot more power over your assets and their growth. When you have to rely on external forces for your banking, you can lose out on opportunities or otherwise find yourself limited. So remember—Infinite Banking is about taking on the role of the banker in your life.It’s also important to note that Infinite Banking is for those who have already established good money habits. This is not a strategy you can implement if you’re trying to get out of debt or fix your financial problems. Good habits mean that you don’t have massive consumer debt,
Are you an ultra-high achiever, but feeling the cost of that success?https://www.youtube.com/live/AZ3FxdpPULYChristine Jewell, author, keynote speaker, faith-based executive coach, and host of the Breaking Chains podcast, joins us today to provide a fresh solution. In her new book, Drop the Armor, Christine teaches you a transformational approach that allows you to stop the hustle and cultivate a life of total alignment and lead from abundance and flow.We've all felt the weight of the world on our shoulders, chasing success at the expense of our peace. That's where Christine Jewell steps in, a faith-based executive coach who is redefining what it means to achieve. In our conversation, she shares her wisdom on living authentically, urging us to shed the armor of relentless hard work and embrace a life aligned with our true purpose. Unpack the journey of finding fulfillment that isn't tied to the next promotion or paycheck, especially resonant for those in high-stress fields like finance and tech. Christine's personal stories are not only insightful but also a testament to the impact of her strategies, which she has applied in her own life with remarkable success.You might expect a discussion with an executive coach to focus solely on climbing the corporate ladder, but Christine's approach is anything but conventional. This episode takes us on a deep exploration of balancing masculine and feminine energies, navigating an identity crisis, and unraveling societal pressures. Christine's reflections on growing up with a high-achieving father paint a vivid picture of the toll that relentless ambition can take, guiding us through her transformative experiences. Learn how hitting rock bottom can be the beginning of true transformation, realigning life with core beliefs for a more peaceful existence. For anyone who's ever felt lost in the hustle, Christine's insights offer a beacon of hope.Christine invites us into a profound dialogue about time, purpose, and fulfillment. She contrasts the chronological with the spiritual, inviting us to ponder life's mysteries and the human quest for understanding. Her book "The Perfect Storm" emerges as a centerpiece of the conversation, promising to guide readers toward true peace and alignment with divine will. We wrap up with a reminder that adopting the habits of successful individuals can enrich our lives beyond measure. It's not just about financial success; it's about crafting a life brimming with fulfillment and joy. Join us for this episode, where Christine Jewell illuminates the path to a more balanced, purpose-driven existence.From Stressed to ThrivingThe Masculine/Feminine DynamicThe World’s Identity CrisisThe Journey to PublishingGet a Copy of Christine’s BookBook A Strategy CallFrom Stressed to ThrivingIf you’re a high-achiever who seemingly runs on stress, then you’ll understand exactly where Christine Jewell comes from. A world-class athlete and a dedicated worker who had been building businesses since her early 20s, Christine appeared to have it all. As she puts it, she was “always working it,” always seeking the next big break, and striving for accolades. Her motto was that second place is the first loser. This pressure fueled her, but not in a sustainable way.By her 30s, Christine found herself going through a divorce and hitting the grind even harder. But underneath that tough exterior, there were cracks in the armor. Anxiety and fear were creeping in, and Christine found that peace and relaxation were impossible, even when that was her goal. Family trips, which were meant to restore, didn't even help this state.[7:00] “I hit that breaking point where I was just like, I am done. My body was burnt out, my soul was dried up… my relationships were unfulfilling.”This breaking point launched Christine into a real heart-to-heart with God about her faith and relationship with Him, wondering if the “hustle” was really part of the design....
If you want to build wealth, reach your financial goals for retirement income, and be able to take care of everything from college for your kids to paying for cars, your home, and a lifestyle you enjoy, the most common first question is, “How to invest?”https://www.youtube.com/watch?v=hExdqtiuhtoIn his signature book, Becoming Your Own Banker, Nelson Nash reveals that changing your financial environment is the lynchpin to financial freedom. For today’s discussion, we’re returning to the text to talk about financial philosophy - the typical philosophy vs. the successful philosophy, and how to finally get results by changing your thinking.We’ll discuss why rates of return are a red herring, touch on the importance of dividend rates, and explain why you should understand your finances as a system rather than a process.Prepare to redefine success beyond the allure of high investment returns, and instead, learn to master the art of personal finance by controlling your financial destiny. This episode unpacks the necessity of substantial liquid savings and the strategic management of capital, which together forge a path to superior financial control and efficiency. We shine a light on the often-overlooked reality that a substantial part of our income dissipates through financing charges, and underscore the essential nature of a robust emergency fund before taking investment leaps.Venture with us through the evolving financial paradigms, reflecting on how Bitcoin, the expanding US balance sheet, and a worrisome debt-to-GDP ratio are sculpting our economic landscape. Bruce and I explore how American consumerism shapes our spending and the significance of developing a financial acumen that evolves from unconscious incompetence to unconscious competence. With Nash's financial philosophy as our guide, we dissect the drawbacks of conventional financing and celebrate the empowerment that comes from holding the reins of one's financial affairs.Finally, we address the surge in inquiries about judicious fund allocation, proffering not a prescriptive investment playbook, but a transformative perspective on money management. I share effective banking strategies that foster automatic savings and the wealth accumulation snowball effect. As we guide you through the intricacies of financial control, we to equip you with the insights necessary to recalibrate your financial habits for a future rich in prosperity. Join us for a conversation that promises to elevate your financial literacy and position you for long-term success.Philosophy and InvestmentsWhat’s Your Philosophy?How to Invest and Rethink Your ThinkingSavings is ValuableAverage Doesn’t Mean MuchSystem vs. ProcessBook A Strategy CallPhilosophy and InvestmentsInvestments are one of the keys to wealth-building, because they can help you break out of the “trading time for money” rut, which can, in turn, improve your financial life significantly. By having capital that’s not reliant on how many hours you put in, you can increase your pool of money faster, have capital to use for scaling your business, and so many other uses besides. However, your investing philosophy matters a great deal here. Not all investments work the same, or have the same results. And whole life insurance is NOT an investment, it’s an asset that can help you if you intend to invest, however. In the Glossary of Becoming Your Own Banker, Nelson shares the Webster International definition of philosophy as “a search for the underlying causes and principles of reality; a quest for truth through logical reasoning rather than factual observation; a critical examining of the grounds for fundamental beliefs, and an analysis of the basic concepts employed in the expression of such beliefs.”Commonly, we see people with an investment philosophy that chasing the highest rate of return makes the most sense. And the reason they think this way is because they want to do the most with t...
Is compound interest magic or discipline? A stroke of luck or the product of sound fundamentals? Fantasy or reality?https://www.youtube.com/watch?v=l3Wyh618yjIIf you want to reap the reward of compound interest, you need to understand the game, the roles, and get on the right side of the board.Today, we'll answer:Why you are always paying interest?What is compound interest?How do you earn compound interest?When it comes to interest, what's in your best interest?Unlock the secrets of your finances and take control like never before as we dissect the fascinating world of interest and compound interest. This podcast promises to transform your understanding of wealth as we delve into the teachings of Nelson Nash, discussing the power shift that occurs when you transition from a mere interest-payer to a savvy individual wielding the banking function in your life. We bring to light how this shift can drastically alter your financial trajectory, using the potent combination of whole life insurance and the principles of Becoming Your Own Banker.Imagine harnessing a tool that empowers you to borrow with ease, ensures your money's uninterrupted growth, and offers historical reliability. That's what we reveal through the lens of a whole life insurance policy in this episode. Discover how this method can serve as a disciplined savings vehicle and a means to build and transfer wealth through generations while respecting the might of compound interest. The conversation also uncovers the strategic moves used by the affluent to maintain financial control and how you can emulate these practices for long-term gain.In our final exploration, we dissect financial contracts and ownership within the realm of whole life insurance, clarifying the various roles such as policy owner and beneficiary. The episode goes a step further by illustrating how the Infinite Banking Concept can be practically applied in your life. By modeling successful behaviors and understanding the nature of these financial tools, you're invited to embark on a journey that could redefine your approach to personal wealth and set you on a path to becoming your own banker.The Concept of Compound InterestAverage vs. Actual Rate of Return and InterestThe Compounding CurveWebster's Definition of InterestOther Glossary Definitions in Becoming Your Own BankerDefinition of Lease/Lessee/LessorDefinition of a MortgageDefinition of OwnerBook A Strategy CallThe Concept of Compound InterestThere are several ways to think about interest, and one is the cost of money or the cost of banking. When most people think about banking, they think about the banking industry. However, we want to talk about the banking function, by which we mean HOW money is handled. The banking function includes making deposits and withdrawals, buying financial products, and moneylending. While banks typically perform this function, there are ways to perform this function outside of banks, like with the Infinite Banking Concept, which allows you to perform the banking function with your own capital (as well as your insurance company’s capital).Interest is the cost of using that banking function. You can pay interest to institutions for the ability to use their money, or they can pay you for storing your money with them or buying one of their products. You can also pass up interest earnings by paying for things in cash, rather than financing them and continuing to benefit from compounding interest earnings on your pool of capital. So interest, essentially, is the cost of money. It can flow toward you or away from you, yet it’s a factor in every financial transaction you make, even if you’re just passing it up. Average vs. Actual Rate of Return and InterestMany people equate interest with a rate of return. And while both involve percentages, they’re not quite the same. First, let’s take a look at what people think about rates of return.
Why is enough never enough? How do I know when you've made enough money, or when making money becomes too much of a concern, and you should be satisfied with what you've got?https://www.youtube.com/watch?v=B3zBDjmeNTAJoining us to discuss this abundance paradox is a long-time friend of The Money Advantage, Rabbi Daniel Lapin. Author of Thou Shall Prosper, Business Secrets from the Bible, and The Holistic You, among other works, Rabbi Lapin is an international speaker and TV host who shares the relevancy of ancient Jewish wisdom for helping us navigate modern times and answer life's most pressing questions.Join us for a captivating discussion with Rabbi Daniel Lappin, who returns for an eighth appearance to unravel the perennial dilemma of why is enough never enough in terms of wealth and work. Listen in as we tackle the intricate balance of ambition and contentment, drawing upon Rabbi Lappin's wisdom and personal anecdotes. This dialogue is designed to guide you through the challenges of defining success and deciding when it's time to refocus your energy away from financial gain and toward the other facets of life that matter most.Discover the art of harmonizing the conflicting truths that shape our lives, as we ponder balancing professional aspirations with personal well-being. Our conversation with Rabbi Lappin illuminates the importance of relationships, health, and embracing a philosophy of service over retirement. The notion that our careers can be a calling rather than just a job is an empowering theme we delve into, exploring how finding fulfillment in service to others can enrich both our professional paths and personal growth.In this episode, we also tackle the scarcity versus abundance mindset, sharing insights on how our beliefs influence our business outcomes and life choices. Rabbi Lappin provides thought-provoking perspectives on retirement norms, the role of marketing in success, and the impact of social circles on our decisions. To round out our expansive conversation, we discuss the importance of balance across the five Fs: family, finances, friendships, faith, and fitness, and we emphasize the crucial role of effective communication in our lives. Tune in for these transformative ideas and more, as we aim to equip you with the tools to lead a more fulfilling, purpose-driven life.Why is Enough Never Enough?Where Are You Investing?Why Do We Do What We Do?Rethinking Retirement ExpectationsThe Holistic YouOther Conversations with Rabbi Lapin:Book A Strategy CallWhy is Enough Never Enough?When asked about how much money is “enough,” Rabbi Lapin told us an interesting story about his daughter instead. He and his wife homeschooled their daughter for much of her life, until she decided to go into the school system. His daughter found school to be fairly easy, and getting As were no issue for her in her first semester. In her next semester, however, she started to get some Bs, and the semester after that some Cs sprinkled in. While the Rabbi and his wife were not overly concerned with grades, they did ask her about it. And his daughter answered that when she got As, she was spending too much time focused only on homework. When she got Bs, she had time for other interests and pursuits. And Cs reminded her that she wasn’t putting enough time into school. So she used her grades as a gauge in a very interesting way, outside of the typical way of thinking. For her, it was all about balancing priorities. He likens this story to the question of “enough money,” because it’s something everyone will grapple with. Is there a point at which you can say you’re doing well enough with money that you stop pursuing it?[06:07] “This is actually a very difficult question. It’s not a difficult question to answer, but it’s a difficult question to answer in a way that doesn’t indict me.”Where Are You Investing?Money is of course important.
Why does Infinite Banking work?https://www.youtube.com/watch?v=iKdgq2KDw_sWe'll look at the flow of money through the economy, where it is pooling, who owns it, who controls it, and who gets access. This is the Infinite Banking Process explained; and this clarity will tell you everything you need to know about how money works.Unlock the secrets to financial sovereignty as we journey through the empowering strategy of infinite banking, inspired by Nelson Nash's celebrated philosophy. We unravel the often misunderstood world of controlling your own financial destiny. Imagine breaking free from traditional banking, navigating the complexities of money management with ease, and placing the power firmly in your own hands. Through our illuminating discussion, you'll discover a straightforward approach to building your pool of wealth, gaining insights that promise to transform your relationship with money.In today's episode, we delve into the mechanics of how money circulates within personal and economic systems, drawing insightful parallels with natural cycles and Warren Buffett's investment principles. You'll learn about the inner workings of life insurance companies, unveiling how you can tap into their capital reservoirs to your advantage. By embracing the simplicity of taking control of the banking function, we champion the mantra of modeling the successful few. Don't miss the opportunity to explore how infinite banking can reshape your future, offering you the keys to constructing a life and business that reflect your true aspirations.Building Cash Value Through InsuranceInfinite Banking Process Explained: The Value of Cash ValueMoney and the Water CycleBook A Strategy CallBuilding Cash Value Through InsuranceYou may have heard that Infinite Banking is “more caught than taught,” which is Nelson’s way of saying that the concept is more important to understand than the minute details. If you understand from a macro perspective how things work, you can do great things with IBC—the rest comes with time and study. For example, most people get hung up on the idea of rate of return when reviewing financial strategies and products. But if you place too much value on rates of return, you may lose out on other valuable benefits like liquidity, protection, tax advantages, and more. Or, if you’re too focused on getting a good rate of return, your average growth could be worse than a slow but steady rate of return. By understanding the principles of IBC—like building cash value with as much flexibility as possible—the rate of return and other concerns are minimized. We’re asking you to reframe how you think about your wealth.Infinite Banking Process Explained: The Value of Cash Value[03:12] “Really it’s about developing a pool of money that you can then access to take the finance charge out of your life, and when you come upon opportunities in your life to then use that for investments. It’s really that simple.”Cash has tremendous value in our lives, and we all have a need for financing while we’re on this earth. The place where you store your cash can have a major impact on how you use it when you use it, and why you use it. By storing your cash in whole life insurance, you guarantee that you remain in control of those functions, so you can use your money when you want to, and you can finance what you want to. That’s the value of cash value. Money and the Water CycleThe reality of money is that it flows. It flows from one reservoir to another, like water, so we’re going to explain Infinite Banking through the analogy of water. Like the water cycle, money in your “pool” can evaporate, it can condense, and fill your pool more, or it can flow to/from other sources. The important part is that you have the pool to work with!Money enters your insurance company’s pool by paying premiums and repaying loans (which translates to increasing your own pool of money).
Ever felt like financial jargon was designed to confuse rather than clarify? Join us as we navigate the labyrinth of financial terminology, particularly within the infinite banking sphere. It's not just about learning by rote; it's about cementing a rock-solid financial strategy based on clear, precise language. By dissecting common misconceptions, we aim to transform your understanding from hazy to laser-focused, providing you with the tools to discern financial facts from fiction and proving that words matter.https://www.youtube.com/watch?v=ziAj2-Se8fIJourney with us as we illuminate the enigmatic world of life insurance company ratings, Comdex scores, and the lifeline that is the reserve fund. Grasping these concepts is not just about knowledge—it's about safeguarding your future dividends. Our personal stories bring these ideas to life, showing how life insurance company policies can influence your financial trajectory. We'll also equip you with a broader vision of the infinite banking concept, one that goes beyond dividends to a holistic view of accessible capital, cash value growth, and the profound benefits of a well-designed system.Finally, become the architect of your own prosperity by mastering the finance tools at your disposal. As we explore the principles of disciplined savings and strategic capital use, you'll learn to cultivate a mindset that prioritizes wealth creation over mere accumulation. We invite your questions and curiosity, as they fuel our mission to empower you to make informed, confident financial decisions. So, let's transform your understanding of finance and pave the way to a thriving financial legacy.And clarity in the fundamentals leads to clarity in your use of the whole strategy.Join us as we continue the series through Becoming Your Own Banker with Part 2 on the Glossary of Terms.IBC Glossary of Terms, ContinuedDefinition of Co-GenerationDefinition of ClassificationDefinition of Contingency FundDefinition of EarningsThe Fundamentals of Infinite BankingBook A Strategy CallIBC Glossary of Terms, ContinuedDefinition of Co-GenerationThis is a term used in conversations on electrical power that acknowledges that there are many sources from which to generate power within the distribution system, many of which are both producers and consumers of power. In other words, to generate the end product (electricity/power) there isn’t just one component, and it isn’t just producing. Many components within the system produce AND consume power before the final product is complete. Applied to banking, you can understand that in a properly working system, there are going to be times for capitalization (“producing”) and times for leverage (“consuming”). The process of banking is not just stockpiling, it is ALL functions of money. Definition of ClassificationWebster’s Dictionary defines classification as “the act of grouping into classes that have systematic relations, usually founded on common properties.” In other words, we all classify things based on their major characteristics. Classification is a great tool because it can help us compartmentalize new information and fit it into what we already know. But when it comes to life insurance, there is a great challenge, which is laid out in Becoming Your Own Banker, to rethink your thinking. After all, it would be tempting to classify life insurance as any other insurance product and move on. But when we do this, we miss out on the chance to form a proper mental construct of what whole life insurance is and can do. Though life insurance is certainly insurance, whole life insurance with a dividend-paying mutual insurance company shares characteristics with banking, and should be classified as such. It just requires that you see things a little bit differently and dig a bit deeper.Definition of Contingency FundThis is the amount of money an insurance company retains as surplus after paying deat...
Have you ever felt like you're on a financial hamster wheel, constantly spinning but never gaining traction? Join us as we unpack the epilogue and glossary of Nelson Nash's "Becoming Your Own Banker." It's a journey through the intricate philosophy of IBC, as we cover Infinite Banking definitions that shows how effective money management can reduce your reliance on financial institutions—empowering you to take charge of your financial destiny.https://www.youtube.com/watch?v=_87p12KasusAs we comb through the fine print of Nash's teachings, we illuminate the idea that banking extends well beyond the brick-and-mortar institutions we're accustomed to. It's a profound discussion that traverses the importance of adhering to principles and contract terms, the influence of family values on Nash's strategies, and the critical role of capital in both your personal finances and the broader economy. Imagine building a financial foundation so robust that you negotiate life's transactions from a position of strength. We reveal how this can be your reality through the strategic use of whole life insurance as a personal banking system.Wrapping up with a profound understanding of policy ownership in mutual life insurance companies, we explore how this positions you uniquely to reap dividends and control the banking process. It's not just about being on the receiving end of profits; it's about ownership and the control that comes with it. Tune in as we guide you through the mechanics of life insurance policies, the growth of cash value, and how paying interest on policy loans can play into the success of your financial strategy. Our conversation is more than a lesson; it's a revelation on how to unlock the full potential of Infinite Banking and claim autonomy over your financial future.Want to be successful with Infinite Banking? Make sure you understand your Infinite Banking policy by knowing these terms and definitions.The Truth About Infinite BankingInfinite Banking DefinitionsDefinition of BankingDefinition of CapitalDefinition of Capitalization PeriodDefinition of Cash ValueBook A Strategy CallThe Truth About Infinite Banking[7:50] “When you think about Infinite Banking, it is not a product. I think so many times people think this is a product. ‘I can buy this life insurance that does a protective job in my financial life.’” Whole life insurance is a product. This much is true. However, Infinite Banking is a concept and a process that you apply to the product. It’s entirely possible to have whole life insurance without ever employing the Infinite Banking concept. And so you have to be careful that you don’t simply buy the product and stop there. You’ve also got to implement good strategies and habits so that you actually execute the banking function in your life. This takes work, education, and guidance.[13:19] “You put a tool in the hand of somebody that doesn’t know how to use it, they’re going to break the tool. So Infinite Banking is a tool. If you do not follow the basic tenets, it could fail on you. And what does fail mean [in this case]? It means the life insurance doesn’t stay in place. But not because the concept was bad, [but] because you did not follow through with what the contract said it was going to be.”Infinite Banking DefinitionsAs we reach the end of our series on Becoming Your Own Banker, we reach the Glossary, in which Nelson defines the major terms and words used throughout the book. This can help you can a deeper understanding and appreciation for what's happening within the Infinite Banking "Concept," so that you can apply it with greater understanding.Definition of BankingIf you’re going to implement Infinite Banking, first you want to identify regular banking. The Webster definition of banking is “the business of a bank; originally restricted to money changing and now devoted to taking money on deposit subject to check or draft, loaning money,
Embark on a transformative financial odyssey with us as we reflect on our profound experiences at the Nelson Nash Think Tank for 2024. Unlock the doors to personal economic empowerment with the Infinite Banking Concept (IBC), a brainchild of the late Nelson Nash that revolutionizes the use of dividend-paying whole life insurance. We shed light on the historical roots and celebrate Nelson Nash's legacy, dissecting how 'banking' transcends traditional institutions to become a powerful financial tool. As we honor Nash's vision, we invite you to join us in forging a path toward reclaiming financial control and crafting a resilient legacy for generations to come.https://www.youtube.com/watch?v=0G72iWOShEkTune in to hear about the most important work the Nelson Nash Institute is doing to advance the message of the Infinite Banking Concept, preserve Nelson Nash's Legacy, and help more families build sustainable wealth.Your Need for FinanceNelson Nash's Legacy: IBC Principles1. Think Long-Range2. Don’t Be Afraid to Capitalize3. Don’t Steal the Peas4. Don’t Do Business with Banks5. Rethink Your ThinkingThe Biggest Takeaway from the 2024 IBC Think TankThe Economic Value of CertaintyDoes the Insurance Matter?Links Mentioned:Book A Strategy CallYour Need for FinanceAt the beginning of Becoming Your Own Banker, Nelson Nash states that it demonstrates that your need for financing over your lifetime will be greater than your need for protection. And this is the foundation of Infinite Banking, which helps families create their own financing resources first, in a way that also offers some protection. The second thing he says, right at the beginning of the book, is that finance is not about investments. It’s about how people finance their lives, which can certainly include investments. This is because ultimately, interest rates will always go up and down, making investments a variable risk. And yet, there will be a constant need over your lifetime to finance or fund things. Therefore, the banking function should be a priority. The Nelson Nash Institute, which hosts the annual Think Tank for IBC practitioners, is geared towards education for advisors. It helps boost camaraderie within the field, as well as ensure that IBC practitioners are on the same page about what Infinite Banking is and is not. This ensures that when you are speaking with an IBC practitioner, you’re speaking with someone who knows how to help you create a banking function for YOUR needs, without becoming unbalanced or ineffective. [37:10] “[Nelson] said that we have to have a program [so] that if a person’s going to call this Infinite Banking, that they actually understand Austrian economics, they understand whole life insurance in general, and why it is a rock solid institution that’s been around longer than any of these other types of insurance.”Nelson Nash's Legacy: IBC PrinciplesThink Tank is a fantastic time for IBC practitioners to get together and reaffirm the basics, as well as build advanced skills. From Bruce’s perspective, here are some of the key takeaways about whole life insurance and IBC from the event. 1. Think Long-RangeMany people think about their finances from a short-range perspective, especially when chasing rates of return. They think about what’s good for them now, without considering the implications a few decades out. This is actually how we’ve been trained to think by society. So instead of making choices that delay gratification for greater success and stability later, people are stuck thinking only a few years ahead. Whole life insurance helps people conduct long-range strategies because it’s an asset you can use over your whole life. While there’s a capitalization phase, you have the opportunity to make shorter-range decisions while knowing that in the long term, you’ve got your bases covered. After all, you’ve got replenishing capital, as well as a legacy to leave to your heirs for a ...
Is what you think about money actually true? Is it helping or hurting you? Moving you forward and expanding your influence, or limiting you and your potential?https://www.youtube.com/watch?v=YerQ46AgjZEIf you joined us last week, you know that in true Bruce and Rachel fashion, we only covered half of our intended conversation, so we're back to reveal more money myths in Part 2.Here, you'll get a detox from harmful thinking about money, so you can gain back financial health and control.Tune in as we continue our series through Nelson Nash's book, Becoming Your Own Banker, where we discuss retirement plans, the stock market, paying cash, and life insurance needs analysis. And this is one place that the final points to consider might just be the most important part of the book.If you want to keep more money, have more future income, and live with more peace of mind along the way, join us for down-to-earth real talk about money that you'll wish you already knew.Money Myths that are Costing You Money, Continued4. Tax-Qualified Plans are Best5. You Should Only Do One Thing6. You Should Always Pay Cash7. Life Insurance is About NeedsBook A Strategy CallMoney Myths that are Costing You Money, Continued4. Tax-Qualified Plans are BestThe most popular qualified plan, of course, is the 401k. The 401k is an account that allows people to contribute some of their paycheck to be invested on their behalf. Once locked away, that money cannot be accessed without penalty until age 59 and a half. Then, once you do access it, it’s time to pay major taxes. So why does the 401k have such a grasp on the financial world? Because it’s specifically designed for retirement savings, and it gives people a way to feel like they’re investing and doing something big with their money. And don’t get us wrong—it’s better to save money somewhere than to do nothing at all. The problem is in thinking that a 401k or an IRA are your only options. After all, these are government-designed products that benefit the government, too. While that alone doesn’t discredit qualified plans, it should stop and make you think. [12:53] “When a government creates a problem… and then turns around and grants you the exception to the problem they created, aren’t you a little bit suspicious that you’re being manipulated?” So, if qualified plans are not the best assets to save for retirement, what are the best? The short answer is anything within your control. The longer answer is that you want an asset like whole life insurance where your dollars are preserved, growing, and accessible whenever you want them to be. [22:50] “Investing is a fabulous idea, but not for the purpose of having safe money. Not for the purpose of having money that you can depend on in the future.”5. You Should Only Do One ThingAnother common financial myth is that there’s only one right thing to do. This couldn’t be further from the truth. What matters far more is your order of operations. If you invest first, without having savings to support you, it's going to be unpleasant when you need to dip into your capital and you cannot. So, savings have to come first. Then, once you have a good foundation, and you have capital that isn’t just secure but is also growing, you can start employing some of those dollars in investments. Those investments can grow, and even if something goes wrong, you’ll still have a solid foundation. Whole life insurance is an important asset for many reasons, but we aren’t suggesting it’s the only thing you do. We simply recommend it as a starting place that will make all of your future financial decisions that much stronger. And if you are being told that you should only do one thing with your money, question why that is.[45:30] “When you are putting money into a situation that is deferring tax, you just don’t have control over how much you will end up getting off that account balance in the end.”6.
If you're reading this, chances are you've already taken the first step towards securing your financial future. But what about the financial futures of your children, grandchildren, or even your great-grandchildren? The journey towards financial stability isn't a one-generation game; it's about creating a lasting legacy that will provide for your loved ones long after you're gone. Today, we discuss the power of trusts for generational wealth.https://www.youtube.com/watch?v=rb44Ad7Eg1kI recently had the pleasure of sitting down with Joel Nagel, an international business attorney who has spent over three decades specializing in asset protection and estate planning. Joel generously shared some incredible insights and strategies for building and protecting a generational wealth dynasty, and I'm thrilled to share these insights with you.The Power of Trusts for Generational Wealth with Joel NagelTrusts and Insurance: A Harmonious Wealth Transfer StrategyUsing Trusts to Protect and Grow Your WealthDiversifying Assets for Long-Term StabilityEducating the Next GenerationNavigating Offshore InvestmentsConclusion: Your Journey Towards a Financial LegacyBook A Strategy CallThe Power of Trusts for Generational Wealth with Joel NagelFirst things first, Joel highlighted the importance of structuring wealth in a way that transcends personal estate planning. This isn't just about making a will or setting up a basic trust; it's about taking strategic steps to minimize estate taxes and preserve wealth for multiple generations.Joel recommends considering the establishment of international trusts. These legal structures provide a level of protection that domestic trusts may not, safeguarding your wealth from litigation and political policy changes. It's a forward-thinking approach that requires a deeper understanding of the global financial landscape, but the potential benefits for your financial legacy are substantial.Trusts and Insurance: A Harmonious Wealth Transfer StrategyWhat struck me during our discussion was Joel's emphasis on the relationship between trusts and life insurance. He described this synergy as a "legacy-building machine," and it's not hard to see why.When you set up a trust, you're protecting your assets from estate taxes upon your death. Add life insurance into the mix, and you've got a mechanism to transfer wealth to the next generation tax-free. This strategy ensures that the assets in the trust continue to benefit your heirs, creating a financial legacy that spans generations.Using Trusts to Protect and Grow Your WealthTo illustrate the power of trusts for generational wealth, Joel shared a case where a trust with offshore funds successfully defended in court. This story serves as a testament to the robust legal strategies available to protect trust assets.He also emphasized the benefits of using lending within trusts for generational wealth, as opposed to outright gifting. This approach, employed by prominent families like the DuPonts and Kennedys, can motivate beneficiaries to focus on wealth accumulation and responsible financial management. It's a fascinating way to foster financial growth while also encouraging good money habits.Diversifying Assets for Long-Term StabilityIn addition to strategic trust management, Joel also highlighted the importance of diversifying your assets. He specifically recommended investments in gold and real estate, noting that these tangible assets have historically demonstrated resilience against inflation and economic shifts.Additionally, understanding and utilizing legal structures like onshore and offshore trusts, limited partnerships, and corporations can further fortify your family's financial standing. It's all about spreading your wealth across different asset classes to ensure long-term stability.Educating the Next GenerationOne of the most critical aspects of generational wealth, according to Joel,
What if what you think about money turned out not to be true? Even worse, what if you're believing lies that are costing you money?https://www.youtube.com/watch?v=AuThVweoNlUEmbark on a journey as we unravel the twisted web of money myths holding you back from true wealth. Inspired by Nelson Nash and flavored with insights from David Stearns, our discussion breaks down seven misconceptions that have snaked their way into your financial beliefs. From the debated need for dual incomes to the complex dance around tax deferral, we're here to challenge the status quo and guide your finances out of the fog and into the clear.Tune in as we continue our series through Nelson Nash's book, Becoming Your Own Banker, where we discuss increasing income, future taxes, banking, retirement plans, the stock market, paying cash, and life insurance needs analysis. And this is one place that the final points to consider might just be the most important part of the book.If you want to keep more money, have more future income, and live with more peace of mind along the way, join us to for down-to-earth real talk about money that you'll wish you already knew.Rethink Your ThinkingThe Top Money Myths1. You Need Two IncomesThe Economic Value of Homemaking It’s Better to Take the Tax DeferralMarginal Tax Brackets2. You Should Be the Customer of the BankCome Back for Part 2Book A Strategy CallRethink Your ThinkingIf you want the same results you’ve been getting, you’ve got to keep doing what you’ve been doing. But if you want different results in life, you have to do something different. If the run-of-the-mill financial advice worked for people, we’d see proof of that. And yet many people who stay stuck in this way of thinking are only just keeping their heads above the water.For massive, powerful financial transformation, you have got to rethink your thinking. Stop clinging to what doesn’t work (or only marginally works) because it’s what you hear most often. Instead, look to the successful few and follow their cues. To help, we’ve compiled a list of money myths people commonly believe, and how to rethink your thinking around these topics. The Top Money MythsThe dangerous thing about money myths is that they’re so prominent in our society. These are not just individual beliefs that are myths, but widely accepted cultural beliefs about money that are holding people back from true wealth.So let’s explore what these myths are, and how you can rethink your thinking about them. Below, you'll find the first three of seven money myths discussed in Becoming Your Own Banker. 1. You Need Two IncomesThis is one of the trickier myths to combat because there are plenty of good reasons for families to have two incomes. Especially now, with high inflation, many families are feeling that pinch. However, thanks to Parkinson’s Law, we know that what we THINK we need and what we actually need are not the same. This means that the more money people make, the more their spending rises to meet that income. Unless, of course, that person gets a handle on that spending and turns it into a habit of saving instead.Another reason the “two-income” mindset holds us back is because it’s a limited perspective. While more money is more money, viewing income as a product of labor means that you’re always stuck trading time and work for money. If, instead, you shift your understanding of money and income as something that can be scaled and is based on your value, then it doesn’t matter whether you have one or two incomes. You may have ten sources of income! And even that may give you more time in your week to spend time raising your household, making family memories, and more.[08:10] “There’s a different way to think about it, and it’s not going to be perfectly black and white. It’s not like there’s one right way to do things. But [Nelson] just encourages us to think about [how] there are two different sources ...
Can you confidently say your family's financial future is protected? Staring down the barrel of a life-altering moment, I was forced to confront the fragility of existence and the critical importance of having one's affairs in order. That harrowing experience became a catalyst for today's soul-searching episode of the Money Advantage podcast, where we navigate the often-neglected waters of estate planning. This isn't your typical run-of-the-mill chat; it's a deep dive into preparing for the unforeseeable, ensuring that your family and cherished assets are shielded when you're no longer here. Estate planning transcends mere financial arrangements—it's about crafting a legacy that encapsulates your values and survives through the ages.https://www.youtube.com/watch?v=aQGy19s4OU8As I walk you through this with the wisdom I have learned from estate planning attorneys who share our philosophy, we touch on themes beyond the balance sheet. A personal close call serves as a stark reminder of life's unpredictability, prompting the critical need to act now. But it's not all somber reflections; this episode is imbued with hope, offering a powerful free tool to help you sculpt a robust plan tailored to your life's blueprint. By the end, you'll be equipped with the insights and resources to take decisive control of your estate planning, crafting a legacy that ensures your loved ones thrive for generations.Do you know you need to do estate planning, but you're struggling with the motivation to get started because it seems time-consuming, complicated, and hard?When it comes to estate planning, procrastination is so common that it seems normal. And that's simply because most people are missing the one key thing they need to be able to move forward.So, if you'd like to make progress in just a few minutes, tune in today to find out the one question you need to ask yourself so you can get started?Estate Planning 101Getting Started with Estate PlanningThe Number One Question to StartA Personal StoryHow Prepared Are You to Protect Loved Ones?Book A Strategy CallEstate Planning 101Estate Planning is such an integral part of financial preparation, and yet it seems like something so complicated and so encompassing that it has the potential to consume all of your focus. However, estate planning does not have to be as scary as all that. Estate planning is the process of legally planning to take care of your loved ones and take care of your financial assets ahead of time so that when you die, your affairs are sorted. While death isn’t fun to think about, having these plans is so crucial. Otherwise, you risk leaving your family and financial affairs to the whims of the probate courts. So, while you’re alive, it’s so powerful to use the financial wisdom that you have now to ensure that your wishes are carried out when you’re gone. By taking care of this essential step, you can live your life with a greater peace of mind that what you care most about will be taken care of, no matter what. While life insurance is a piece of that puzzle, there are some other considerations to take care of, and hopefully, this post can make the process just a bit easier for you. Getting Started with Estate PlanningAs you ready yourself to get your affairs in order, know that you must do this work with a licensed estate attorney who is licensed in the state where you live. What we’re sharing with you today is a preliminary conversation, so that you can feel confident going into the process. However, the actual planning must be carried out with the correct professional. The benefit to working with a professional is that they can look at your family, your assets, and your goals and turn that into something customized that works for you. We have some estate planning attorneys on our team who create plans for families in a way that is congruent with the Infinite Banking strategies we employ.
Do you want to use Infinite Banking, but you're uninsurable? Today we are discussing uninsurability hacks!Don't worry, uninsurability ISN'T a game-stopper for using Infinite Banking to build your own banking system. https://www.youtube.com/watch?v=iklRiFBTZRoThat means you can still reap the exponential reward of dividends and interest that grow with uninterrupted compounding, store liquid cash reserves that can serve as guaranteed collateral throughout your lifetime, even while it continues growing, and provide a death benefit that is the most efficient estate transfer tool ...... even if you're not personally eligible for a life insurance policy due to health concerns.Today, we're nearing the end of our tour through Nelson Nash's book, Becoming Your Own Banker to show why Infinite Banking is, in fact, an opportunity available to just about everyone.Unlock the secrets to financial empowerment, even when the odds seem stacked against you due to uninsurability, with our latest Money Advantage Podcast episode. Rachel Marshall and Bruce Wehner delve into the heart of infinite banking for those carrying the weight of health conditions or lifestyles that insurance companies typically shy away from. We tear down the barriers and bust the myths that may have left you feeling excluded from the world of life insurance, revealing a silver lining for anyone eager to take control of their financial destiny.Join us as we navigate the often misunderstood landscape of life insurance ratings, breaking down how your personal health and lifestyle choices don't have to deter you from securing a policy that benefits your financial plans. From understanding the nuances of mortality rates during unprecedented times, such as the COVID-19 pandemic, to the ins and outs of insurance contracts, this episode is packed with expert insights that will reshape your perception of life insurance's role in your financial strategy.Whether you're facing personal insurability hurdles or you're searching for ways to cement a legacy for future generations, we provide actionable strategies and a dose of inspiration. Explore how insuring a family member can open the doors to the infinite banking concept, and how even those with health concerns can potentially find viable paths to insurability. We also touch on the potential of life insurance in generating passive income and serving as capital for investment opportunities.How to Be Insurable Should You Apply with a Health Condition?Life Insurance RatingsWhat Does it Mean to Increase the Cost of Insurance?Uninsurability Hacks and Insurable InterestBook A Strategy CallHow to Be Insurable If you want whole life insurance, you’ve got to qualify for a policy first. This means that the insurance company views you as an acceptable risk to take on. Since whole life insurance is permanent, companies must do their due diligence to guarantee that they can pay the claims they are responsible for. In other words, they can’t insure everybody, or they wouldn’t have the money to pay death benefits. So, to gauge your personal insurance risk, companies require an application. Part of this application is a health exam. Life insurance companies employ people called actuaries, who are capable of extremely precise life expectancy math, based on certain health variables. A health exam helps to tell these actuaries whether you fall within an acceptable risk margin, and how much it would then cost to insure you if you do. For example, someone with good health who smokes cigarettes may qualify for insurance, however their cost of insurance will increase slightly, since smoking creates a higher risk for certain issues later in life. It may all sound a bit morbid, however, this practice allows insurance companies to be extremely capable financially (which is something you want in an insurance company). By insuring people who are likely to live long lives,
https://www.youtube.com/watch?v=2zMyR7l2elgInsurance may often seem like an enigma, a complex puzzle that's challenging to decipher. You're not alone in feeling this way. However, understanding insurance isn't just a necessity; it's the foundation for securing your financial future. Learn how to protect your lifestyle with insurance.In our most recent podcast episode, we were delighted to have Meaghan Dowd as our guest. Meaghan is an expert in property and casualty insurance, and her knowledge about asset protection is truly transformative. She unraveled the intricacies of insurance policies and offered strategies to ensure that your coverage is as robust as your ambitions.How to Protect Your Lifestyle with InsuranceWhy Insurance is More Than Just a Legal RequirementUnderstanding Your Insurance PolicyUmbrella Coverage: Not an Option, But a NecessityThe Choice Between Captive Agents and Independent BrokersInsights from Meaghan Dowd's Book: "Protect Your Lifestyle"The Road to Financial SecurityConclusion: Secure Your WealthHow to Protect Your Lifestyle with InsuranceIf you've ever found yourself navigating the intricate labyrinth of insurance policies, you'll understand how daunting it can be. Whether you're trying to comprehend the difference between captive agents and independent brokers or attempting to decipher the meaning behind the terms in your homeowner's insurance policy, it's easy to feel overwhelmed. But, have you ever considered that understanding these details could be your ticket to securing your financial future? We've decided to share some key takeaways from our chat and hopefully illuminate the path to financial security through insurance.Why Insurance is More Than Just a Legal RequirementInsurance is often viewed as a legal requirement, something you must have to avoid penalties or lawsuits. However, this is just scratching the surface of what insurance truly represents. Property and casualty insurance, as Meaghan pointed out, are not just legal requirements but cornerstones of a resilient financial foundation.Understanding Your Insurance PolicyMeaghan Dowd emphasized the importance of understanding the intricate details of your insurance policies. From homeowner's coverage to umbrella policies, comprehending what each one covers ensures you're fully equipped to face life's unexpected turns. She also shared her transformational journey in the insurance industry and emphasized how education and proper coverage can make a profound difference in safeguarding your wealth.Umbrella Coverage: Not an Option, But a NecessityOne of the standout points from our conversation was the importance of umbrella coverage. This type of insurance isn't just an option; it's a necessity for both personal and business liabilities. Meaghan explained how understanding the details of your policy could prevent the financial fallout of an uncovered claim.The Choice Between Captive Agents and Independent BrokersChoosing the right insurance representation for your specific needs is a crucial decision that shouldn't be taken lightly. Meaghan highlighted the strategic differences between working with captive agents versus independent brokers. Understanding these differences can lead to more tailored coverage for your unique needs.Insights from Meaghan Dowd's Book: "Protect Your Lifestyle"Our conversation also delved into Meaghan's book, "Protect Your Lifestyle," where she empowers readers to make informed insurance decisions. The insights from her book provide invaluable resources for anyone from recent graduates to seasoned professionals. She shared the importance of being proactive with property and casualty insurance, understanding umbrella coverage, and choosing the right insurance representation.The Road to Financial SecurityDon't miss the opportunity to empower your financial future with smart insurance choices. The insights Meaghan Dowd shared in our conversati...
Should you go to college? Should you send your kids to college? Will they earn more with a college degree? Will the degree provide a better financial future? What is the rate of return on a college degree?https://www.youtube.com/watch?v=sPZM49y8hisUnlock the secrets to a financially savvy future as we dissect the age-old belief that college is the golden ticket to success. Prepare to have your perspective shifted with eye-opening discussions on the financial value of higher education, examining the return on investment through the lens of Nelson Nash's "Becoming Your Own Banker." From the societal push towards university halls to the sobering reality of student debt, we navigate the complexities of college funding strategies and the potential of alternative education paths that could lead to prosperity without a diploma in hand.Challenge the status quo with us as we scrutinize the necessity of degrees in today's career landscape, where sometimes certifications can trump years spent in academic pursuit. We share personal tales and data-driven insights that question whether the conventional college experience truly measures up against the backdrop of rising tuition costs and the changing demands of the workforce. Our discussion extends beyond the classroom, highlighting the intrinsic value of continuous learning and the mastery of financial principles that can shape your life's trajectory.Concluding our series, we pivot to practical financial wisdom, contrasting traditional college savings plans with the innovative approach of investing in dividend-paying whole life insurance policies. Through the Infinite Banking Concept, we reveal how this strategy could offer a more advantageous financial outcome, potentially outpacing the gains of a college-funded future. If you're contemplating educational paths or seeking ways to maximize your financial legacy, this episode is an essential guide to charting a course toward true financial enlightenment and independence.So if you want to be able to get real college advice so you can better navigate the college decision and set your kids up for lifetime success, tune in today!Is College Worth It?The Cost of EducationThe Power of Understanding BusinessReal College Advice: Whole Life Insurance or Tuition?Further Resources: Book A Strategy CallIs College Worth It?[05:42] “Nelson believed that people need to think. He thinks that’s one of the biggest problems Americans have, [that they] have changed into, almost like lemmings, where they have just been taught not to think.”Due to Nelson’s skepticism about the education system, he questions whether college is necessary for young people to be productive, successful, and wealthy. After all, if school isn’t teaching people to think, what is it teaching?Of course, there are naturally exceptions to this. You don’t want a doctor who hasn’t trained extensively, nor do you want a lawyer who doesn’t know the law, or a scientist who doesn’t understand the scientific process. In these cases, school is integral. However, the world is becoming increasingly entrepreneurial, which doesn’t take a degree, as much as it takes critical thinking and people skills. Even jobs like coding and programming can be learned in short-term courses, as opposed to a college environment. This isn’t to say that college isn’t a worthwhile endeavor. However, it is an expensive one and a decision that shouldn’t be taken lightly. There is truth to the statement that your earning power is statistically higher if you have a college degree. However, there is also tremendous debt, that may not be necessary depending on what you want to accomplish in this life. The Cost of EducationIn the 80s, when Bruce went to Truman State University, the total cost of room, board, and tuition was $1995. And when he graduated and went into teaching, he was making about $19,000. That’s essentially a 10:1 ratio. On the other hand,
https://www.youtube.com/watch?v=o6GUHRsyCEEIt is time to discover wealth across borders. Have you ever wondered what it's like to invest internationally, live as an expat, or find a balance between work and play while enjoying life abroad? In a fascinating episode of our podcast, we sat down with Michael Cobb, a renowned figure in residential resort development and global finance, to dive into these very topics. His unique insights and personal experiences offer listeners a roadmap to a richer life experience that transcends geographic and financial boundaries.Discover Wealth Across Borders - International DiversificationA Legacy of Sustainable ImpactThe Time Machine of Emerging MarketsA Haven for Health-Conscious ExpatsLifestyle Choices and Legacy InvestmentsFinding Balance and Embracing JoyBook A Strategy CallDiscover Wealth Across Borders - International DiversificationThe concept of international diversification isn't new, but few have mastered the art quite like Michael Cobb. In our conversation, Michael shares his wisdom on why considering a small portion of one's portfolio for international investment is not only a financial strategy but also a pathway to expansive thinking and adventure. With his extensive background in creating communities across Central America and living the expat life, Michael embodies the spirit of exploration and risk-taking that is crucial for global investors.A Legacy of Sustainable ImpactDuring the episode, Michael delves into the significance of purpose-driven work. His passion for building sustainable businesses that support economic growth in Central America is both inspiring and thought-provoking. The moving narrative about the transformative power of education he shared illustrates how individual upliftment can lead to generational change. It is a powerful reminder that our professional pursuits should aim for a positive and enduring impact.The Time Machine of Emerging MarketsInvesting in emerging markets is likened to a time machine, allowing savvy investors to capitalize on growth trajectories reminiscent of past opportunities in now-developed economies. Michael's expertise in distinguishing lifestyle choices from investment decisions shines a light on the critical nature of separating emotions from analytics. The nuances of investing in areas like Nicaragua and Belize offer a buffet of options for those looking to step into the investment landscape with an informed perspective.A Haven for Health-Conscious ExpatsOne of the most innovative aspects discussed in the episode is the creation of a low electromagnetic frequency (EMF) community in Nicaragua. As concerns about the health impacts of 5G and other EMF sources grow, Michael's work in developing ISLA, a planned community with exceptionally low EMF levels, offers a unique living solution. The thoughtful design of the homes and the communal values shared among residents make this a standout investment and lifestyle opportunity.Lifestyle Choices and Legacy InvestmentsLatin America presents a diverse array of living environments that cater to different expat and investor preferences. Michael touches on the cost-of-living reductions achievable in these regions and the allure of various settings, from vibrant cities to tranquil colonial towns. Additionally, the concept of legacy investments, such as teak plantations, offers listeners insight into how they can secure long-term financial returns and create generational wealth.Finding Balance and Embracing JoyAs the episode concludes, we reflect on the joy Michael finds in slacklining and the importance of hobbies that rekindle our zest for life. It is a beautiful illustration of the balance we all strive for – to lead a passionate and profitable life wherever we may choose to call home. To discover wealth across borders go to https://ecidevelopment.com/Book A Strategy CallDo you want to coordinate your finances so that...
Do you want perpetual wealth that continues growing in future generations?https://www.youtube.com/watch?v=aqCY1qB8LysToday, we're continuing this power-packed series through Nelson Nash's famed book, Becoming Your Own Banker, as we discuss the benefits of buying life insurance for your grandchildren.So if you want to see how thinking generationally is a long-term target on wealth that gives you the advantage so you can build more, how to transfer a wealth mindset to your kids and grandkids, and how to ensure wealth grows continuously ... tune in now!Forestry Management and Infinite BankingBuilding a Long-Term System for Perpetual WealthGood Stewardship and Perpetual WealthBook A Strategy CallForestry Management and Infinite BankingIn Becoming Your Own Banker, Nelson Nash compares the banking function of whole life insurance to forestry management. Both are long-term processes that bear fruit for generations to come when you manage them properly. He expands on this by explaining how forestry works. If you want trees on a 40-year growth cycle, you have to divide your land into 40 even plots of 100 acres each. Every year, you’ll harvest whatever is on one 100-acre parcel of land, and replant it. That way, in 40 years, when you’ve harvested every parcel of land, you’ll be ready to harvest the very first plot all over again. You’re creating a sustainable, perpetual source of lumber, and therefore income. There are also some intermediate cuttings over the years to allow the strong trees better growth.This can be likened to whole life insurance, where you’re “planting” an annual premium while you’re also growing your cash value each year. Every year it’s able to grow uninterrupted, and you can pass it on for generations. And the more it grows, the more you can use it to purchase new investments, assets, and other quality-of-life improvements. It’s a long-term, lifelong process with major benefits if you’re willing to see it through and be diligent about it. Building a Long-Term System for Perpetual WealthWhole life insurance is the preferred asset to execute the banking function because it’s long-term and has many guarantees. The policy loan function allows you to replenish your wealth, much like replanting your forest, while the death benefit provides the seed to the next generation. The reason term insurance can’t work is twofold: first, it isn’t permanent. Term insurance only stays in place for a set term of your life. Because of this, there is no cash value component, which is the second reason you cannot use term for the banking function. The cash value component of whole life insurance is like the equity of the death benefit. It’s a benefit to policyholders for placing so much money (and trust) with the insurance company. Since the death benefit is not guaranteed if you have term insurance, you can’t really build equity in it. This doesn’t mean that there’s no place for term insurance in your banking system. Many people choose to have convertible term insurance to supplement their whole life insurance policy. This guarantees that over some time, you can convert some of your temporary insurance into permanent insurance, without having to re-qualify. Even those who do not choose to convert the insurance may feel a sense of peace at having a little extra death benefit during certain periods of their life, like when their children are young. All of these decisions hinge on one thing: long-term planning and your ability to act for your future self. You cannot predict what will happen to you or your loved ones, however, you can prepare to be capable of overcoming whatever life throws at you. Customizing your banking system allows you to prepare for many outcomes. Good Stewardship and Perpetual WealthJust like with forestry, Infinite Banking requires good stewardship. If you don’t take measures to protect and maintain your forest plots, you run the risk of fires,
Are you looking for a higher rate of return? If so, your quest may point you to an important secret as you make financial decisions. Most people want to get the highest rate of return on their investment dollars .... which is why whole life insurance can be such a turn-off. It seems like a wimpy competitor in the rate of return game.https://www.youtube.com/live/Hu1qEPn9Wc8But in his groundbreaking book, Becoming Your Own Banker, Nelson Nash addresses this question head-on, which is why we will too. In today's discussion, Bruce and I will take an honest look at the rate of return, why it's not as simple as comparing dividend rates or interest rates, and how Infinite Banking actually increases your rate of return.Today, we challenge the conventional wisdom that focuses solely on the rate of return. We delve into the often-overlooked elements of personal finance, such as taxes, volatility, cash flow, and the unique benefits of a life insurance policy. This episode isn't just a numbers game; it's a revelation of the multifaceted advantages of incorporating whole life insurance into your personal economy.It's time to zoom out and consider the entire financial landscape. We're guided by Nelson Nash's philosophy, which teaches us that every financial action – from spending to saving – is interconnected. Bruce and I explore how leveraging cash value can serve as a buffer against market volatility, enhancing your financial resilience. If you've been fixated on isolated investment returns, let this be the wake-up call that steers you towards a more holistic and strategic approach to building wealth.Understanding the fine print of life insurance policies can be akin to learning a new language, but we're here to translate. We unravel the intricacies of policy loans, PUA payments, and the latest regulatory changes impacting your Infinite Banking policy. This crucial conversation is tailored for those yearning to fine-tune their financial strategies and those curious about how behavior significantly influences financial growth. Tune in for a masterclass on optimizing your financial trajectory, and remember, if you're seeking personal guidance, a deeper conversation is just a consultation away.”Interest Rates Don’t Matter”Everyone is Seeking a Higher Rate of ReturnHow Are You Financing?Life Insurance Allows You to Do MoreBook A Strategy Call”Interest Rates Don’t Matter”Interest rates don’t matter. Or, at least, they don’t matter in the ways that most people seem to think. The reality is that not all rates are created equal because they have their own sets of circumstances. Think of how many people choose to buy a more expensive car simply to get the 0% financing. Yet, what’s more important? The interest rate that you pay, or the total monthly payment? When people prioritize interest rates, they often end up paying more per month for a more costly car. Reducing the monthly payment, even at the expense of a higher interest rate, can give you more monthly cash flow that could potentially be put to better use elsewhere, such as paying an insurance premium.Consider, too, how this impacts rates of return. If you had to choose between a 7% rate of return on your 401k or a 7% rate of return on your Roth IRA, which would you choose? Or does it even matter? You might be tempted to say that it doesn’t matter, and yet, when it comes time to distribute your funds, you’ll have to pay taxes on the 401k, but not on the Roth IRA. With that in mind, does it matter what you choose? In this case, interest rates don’t really matter. In fact, knowing what you know, you might even choose to take a lower rate of return in the Roth IRA simply because you’ll fare better in the long run when it’s time to distribute. When we say interest rates don't matter, what we really mean is that they are not the beginning and end of a good financial decision. There’s information in between that lends context to the interest rates....
When war across the world could mean war close to home or a whole world war … when conflicts thousands of years old can’t be solved overnight … when truth seems defined by who’s in power … when totalitarianism seems stronger than freedom and free markets … when open borders looked like compassion but instead weaken us from the inside … when economic prosperity and security look like myths … how do you thrive anyway?https://www.youtube.com/watch?v=KD__jKjby4oBack by popular demand and having just returned from Jerusalem during the October 7th terrorist attack, Rabbi Daniel Lapin joins us to confront today’s challenges with ancient wisdom tirelessly relevant to the turmoil of today.Gaining Perspective and Questioning MisinformationWhat this Conflict is NotHow Do We Thrive Amid Crisis and Chaos?Book A Strategy CallGaining Perspective and Questioning MisinformationIt’s always a pleasure to have Rabbi Lapin join us in conversation and this time he’s lending his personal experience on a particularly timely topic: the Israel-Palestine conflict. While Rabbi Lapin is back stateside, he was in Jerusalem at the time of the attacks and has particular insights on how to thrive in times of turmoil. Typically, the Rabbi goes to Jerusalem while working on a new book or writing project. He and his wife typically spend between 4 and 6 weeks in Jerusalem each year, which they’ve been doing for many years. [05:01] “I just find that writing is very, it’s very inspirational. It’s the only place I know where you can go and open your laptop in a coffee shop and before very long you’re going to be embroiled in deep philosophical discussions with people at the adjoining tables… It’s like a family.”It was at a Tabernacle retreat that Lapin was hosting when they heard sirens go off, and his group made their way to the air-raid shelters. Rabbi Lapin himself found it difficult to make sense of the situation until a missile hit the iron dome, which he describes as “earth-shaking.” The next day, he experienced a Jerusalem he had never seen.[09:10] “This sort of takes me back to Jerusalem pre ‘67 when I was a kid at Bible school in Jerusalem. Back in those days, before the ‘67 war, [the city] was very small, dark-ish, dismal.”In the wake of the attack, Rabbi Lapin and his wife decided that staying in Israel was the best thing they could do at the time. While they never had concerns about getting home, they felt that by staying they could better contribute to the good. What this Conflict is NotWhile the conflict is a complicated one to unpack, Rabbi Lapin makes something clear—it is not a conflict over land disputes. If it were simply a land conflict, that could be resolved by bureaucracy. He emphasizes that a two-state solution has been offered many times and declined. What is happening is that, unlike Christianity and Judaism, Islam does not have room in its doctrine for other religions to exist.[14:44] “Starting in the 7th century, Mohammed started spreading the faith, and he used the sword. The choice was simple: become a Muslim or die. Now, you know, there was obviously a period where Catholicism was spread [by] the Crusades, [and] the desire was to free the Holy Land from the Infidel… but in general, certainly you could say that for the last 700 years, nobody ever pointed a gun at your head and said, ‘Become a Christian or become a Jew.’ But that’s not true for Islam.”[15:32] “One of the casualties of secularism, one of the casualties of abolishing a God-centric worldview, is a contracting of your window of time until you reach the ultimate of secular hedonism, which is: ‘Only today matters.’”How Do We Thrive Amid Crisis and Chaos?4 This is what the Lord Almighty, the God of Israel, says to all those I carried into exile from Jerusalem to Babylon: 5 “Build houses and settle down; plant gardens and eat what they produce. 6 Marry and have sons and daughters; find wives for your sons ...
Financing costs are much more than just interest rates. First, there is the time required to obtain the financing, and then, often numerous steps to qualify and negotiate. This financing is very expensive when you account for the number of executives whose time is required for the endeavor.https://www.youtube.com/watch?v=-MmWlkTQsWEInfinite Banking overcomes this cost of acquisition, allowing you to obtain financing quickly and make timely decisions.In this episode, you'll recognize that time is more expensive than money as we dissect the true cost of acquisition in both personal and corporate finances. We'll help you understand that every minute and mental whack we spend on acquiring capital has a significant cost, which often goes unnoticed. Together, we'll draw wisdom from Nelson Nash's "Becoming Your Own Banker," reminding us of the importance of seeking reliable information and being confident in understanding financial concepts. In a world that's always changing, waiting too long can cost you. That's why we're bringing you the Infinite Banking Concept, freeing you from the shackles of loan qualification and liberating your mind to focus on life's bigger decisions. We'll show you how to align your actions with your values and run your life like a small business, emphasizing the fundamental role of finance and whole life insurance policies.Tune in today as we continue our journey through Nelson Nash‘s book, Becoming Your Own Banker, to reveal yet another often invisible, yet powerful advantage of Infinite Banking.Cost of Capital vs. Cost of AcquisitionFinancing Takes TimeWhat Can You Do with Your Time? Book A Strategy CallCost of Capital vs. Cost of AcquisitionWe often talk about the cost of capital in discussions of Infinite Banking. After all, there’s an interest cost to all of your financial decisions, simply because if you’re not paying interest, you’re passing up the ability to earn interest. The cost of acquisition is just a little bit different, yet it’s just as important in discussions of wealth-building. Simply put, the cost of acquisition is the cost of your time, expertise, and skills. What is it costing you in non-tangible assets to acquire/do something? If you’re jeopardizing your non-material assets in pursuit of savings or a deal, is it really worth that cost? This is an especially prudent question when you consider how much time you’re going to spend doing something, versus how else that time could be spent. You can also apply this idea to spending. Say you’re committed to finding the cheapest gas to fill your car with. In doing so, you’re successful, but you spend 30 minutes or more driving around to find it, and deplete your tank further than if you had just stopped at one of the first places you saw. This takes time and mental energy, and what do you really save? There is a cost of time and energy here that doesn’t necessarily make the savings worth it. When it comes to wealth, you have to think about the big picture. Time is money, and you just consider this in your financial decisions, too. Financing Takes TimeFinancing takes time, but time is money. That’s the lesson here.Consider you’re seeking to finance a major purchase, like a car. You have an Infinite Banking policy, but you hear that the bank can do half a point better. So, you decide to speak with a lender and jump through their hoops. This can take days and time and effort, which keeps you away from your regular routine. You’ve got to prove that you can repay the loan, supply paperwork, and more. In the end, your payment isn’t much different than if you had simply financed through your whole life insurance policy, with no hoops to jump through, and maybe you could have put that additional time towards a more lucrative business decision. In some cases, maybe the bank financing would still be worth the time. The loan may be several points better,
Want to see the real-time historical performance of the Infinite Banking Concept? Usually, when you hear about policy performance, it's from looking at illustrations. But illustrations aren't "performance," they are projections of future growth, based on current dividends and interest. That's why we love getting the opportunity to share the actual historical performance of Infinite Banking policies, and our philosophy and vision for building our family banking system with multiple policies. https://www.youtube.com/watch?v=C39wi4O3838Today, we're discussing the actual capitalization, growth, dividends, cash values, and death benefit of our Family Bank. Our conversation shifts to the personal legacy we're crafting through our family banking system, a journey that began 11 years ago with our first whole life insurance policy. We recount the pivotal decisions that shaped our financial foundation, such as transitioning our assets from precious metals to a more liquid form. We delve into the significance of long-term planning and how our present actions are intended to bless generations to come. Engage with us and consider how you might shape your own infinite banking story.Lastly, we explore the strategic intricacies of life insurance policies, emphasizing the importance of designing a policy to allow for as large of premiums for as long as possible.Prior Episodes In This SeriesStructure of the Family Banking SystemDividends on the Annual StatementNew IllustrationsThe Difference in a YearBook A Strategy CallPrior Episodes In This SeriesPart 1 Mar 2022: Why We Started a New Life Insurance Policy Part 2 Oct 2022: Adding a Second Whole Life PolicyPart 3 Feb 2023: Capitalization Phase - End Of Year UpdateStructure of the Family Banking SystemIn this episode, we take a look at the annual statements for our family banking policies, and the components to be aware of. It’s important to us that we share what we’re doing with our family so that you can see proof of the Infinite Banking Concept in action. In the first policy (listen or watch the full episode to get the details on our 2nd policy as well) we examine, our total premium is $20,000. However, you can break down that premium and see that there are several components at “work” in our premium. The base premium is the minimum amount of premium that must be paid every year to keep the policy current. This is actually only a little more than $7,000. The rest of the 20k premium is composed of Paid Up Additions (PUA) and other riders. One such rider is called “waiver of premium.” This rider can only be applied to the base premium, and it protects the policy owner from paying premiums in the event of a disability that prevents working. There is also a term insurance rider on the policy, with its own waiver of premium rider. The term insurance rider lasts for 30 years, and the corresponding death benefit will drop off after that term unless it’s converted to additional life insurance. This conversion option allows us to keep that death benefit if we wish, and build additional cash value after it’s converted to whole life insurance. This is a great way to maximize your death benefit when you’re starting out. Dividends on the Annual StatementOn our annual summary, you can also see the total accumulated dividend we earned for the year and how it was applied. The line items can get a bit confusing, as it moves between dividends and additional death benefit, but for the year our total dividend was $4,233.15. A large portion of this came from the base policy, while a more significant portion of this came from various PUAs. Our “lifetime” total for dividends earned since 2021 is $7,800.48. So in one year, we earned more dividends than the previous year. This is a testament to the power of compounding interest. In this section, you can see that the PUAs are also adding about $2 of death benefit for every dollar of premium...
https://www.youtube.com/watch?v=LdKhSP9HubEThere's a saying that "family isn't just important, it's everything." This rings true for my family, the Marshalls, who are committed to creating an enduring legacy that will reach beyond our generation. On a recent episode of our podcast, we gave listeners an intimate look into our yearly tradition - the Marshall Family Summit. Joined by our special guest and daughter, Avalynn, we shared how reflection, goal-setting, and intentionality play crucial roles in shaping our multigenerational legacy. Table of ContentsThe Art of Reflection and Planning for the Future - A Family SummitOur Celebration of Family Milestones and Personal GrowthStriking a Balance Between Meticulous Planning and Nurturing RelationshipsReflecting on Key Experiences That Shaped Our YearAn Invitation to You: Cultivate Your Family's LegacyImplement Your Family Summit: Take Inspiration from Our ApproachWant Help Creating a Multigenerational Legacy Of More Than Money?The Art of Reflection and Planning for the Future - A Family SummitOur family summit isn't just a retrospective on the past year but also a strategic planning session for the year ahead. We took inspiration from Dan Sullivan's Strategic Coach and stressed the importance of reflecting on past successes to fuel future aspirations. We revealed how this practice has evolved into a powerful tool for setting clear, achievable goals for the future.Digging deeper into the details of the summit, you'll find that it's a well-thought-out process. It begins with us coming together as a family to review the past year. Each of us shares our achievements, challenges, and personal growth. These reflections lay the groundwork for our future plans. We then collaboratively set goals for the next year, ensuring everyone is on the same page and committed to their realization. This balance of reflection and proactive planning is critical to the success of our annual summit and the continuous growth of our legacy.Our Celebration of Family Milestones and Personal GrowthReviewing the past year, we highlight moments that have strengthened our family bonds, both losses and wins. From the joyous event of welcoming our newest family member, our first son Eli, to personal victories like publishing our book Seven Generations Legacy, we discuss our individual and collective growth. Our conversation then transitions to our travel plans, financial decisions, and financial planning for the year ahead. We then review our family guidance system, encompassing our ideals, shared values, and mission and vision statement. This system, we explain, forms the basis of our daily, weekly, and annual routines. It ensures that our actions and decisions align with our long-term vision for our family. From the smallest daily choices to significant life events, the guidance system provides a roadmap to guide our journey. This system and our annual reflection and planning summit are powerful strategies for sustained family growth and legacy building.Striking a Balance Between Meticulous Planning and Nurturing RelationshipsOne critical insight from the episode is the delicate balance between detailed planning and maintaining healthy relationships. Rather than being a trade-off, we found that our in-depth planning enhanced our relationships with others. We shared our experience hosting a weekly community group in our home and how these moments are intertwined with our larger goals. This approach shows that structure and meaningful interactions can not only coexist but also strengthen each other, leading to more prosperous relationships and a stronger sense of community.Reflecting on Key Experiences That Shaped Our YearLooking back at the past year, we reflected on six experiences that made a significant impact. These range from the birth of our son to our intentional approach to home decor, each echoing our family's values and spiritual growth.
Are you unhappy with your job because you want more fulfillment and meaning out of life? Most people think retirement is the answer. But rather than delivering on its promises, retirement is a trap. Instead, you must learn to live on purpose.https://www.youtube.com/watch?v=c1IxQgBIPn8Prepare to unearth the secrets of living a life of purpose and financial independence with insights from Nelson Nash's Infinite Banking Concept detailed in his trailblazing book 'Becoming Your Own Banker'. This episode promises a powerful discourse on how taxation, government programs, and exceptions are sculpting a potential financial crisis for Americans. Brace yourself as we expose the ramifications of the government's soaring borrowing and spending, pointing towards a possible great reset, and how deferring taxes could be your road to financial doom.Post World War II, the landscape of unions, benefits, and pensions drastically transformed, but did it serve or undermine the individual worker? Let's journey together through this significant period, shedding light on how governmental control and the taxation system have eroded individual autonomy. Discover how liberating decision-making from the clutches of the government can propel societal growth and well-being.Finally, let's delve into the work of Edward Deming on the 'constancy of purpose' and the adoption of a new philosophy. We'll stir your thought process by discussing the necessity of demolishing barriers, ousting fear, and nurturing a culture of innovation. We'll also touch upon Nash's 14 points of quality and his seven deadly sins. So gear up to seize control of your life, money, and future - the journey might be arduous, but the reward is an empowered life, filled with purpose and growth. In the end, the choice to shape your financial life is in your hands - will you emulate the successful few or follow the multitude? Listen in to find out how.Join us to get a fresh perspective on living with purpose and succeeding in improving the quality of your finances.Relinquishing ControlHow Do Taxes Work?Control Your Livelihood and PurposeLeadership and OwnershipLearn from OthersTake ActionLive on PurposeBook A Strategy CallRelinquishing Control[02:08] “[Nelson] says when government creates a problem—onerous taxation—and then turns around and creates an exception to the problem they created—tax shelter retirement plans—aren’t you just a little bit suspicious that you’re being manipulated?”This is the crux of the problem when the government asks you to relinquish control of your dollars to them. They make promises that it’ll be good for you, but it’s even better for them. One promise, for example, is that you get to defer taxes or take a tax credit. And while you get to do that now, that doesn’t exempt you from paying taxes later. And the unfortunate truth is that not only are you paying taxes on the harvest (i.e. the larger sum), but taxes are also much likelier to increase over time than to decrease. In the end, you can’t guarantee future tax rates, but you can plan for them now. Wouldn’t you rather pay taxes now to be exempt later? It’s important to stop and think WHY you’re being told to take certain actions and figure out who benefits most. This is especially true if you’re being asked to relinquish control of your dollars to someone else. How Do Taxes Work?When we talk about taxes, it’s important to note exactly what that means. United States income taxes are marginal, which means that everybody’s dollars are taxed the same from the bottom up. So the first $11,000 of every person’s income is taxed at the same percentage. Then everyone’s dollars from $11,001 to $44,705 are taxed at the same percentage. So when we say that someone is in a 24% tax bracket, that doesn’t mean all of their income is being taxed at 24%. Their income is just high enough to have a portion of their income taxed at that percentage. So,
Prepare to see retirement in a new light as we dissect the traditional financial paradigm and question the perceived desirability of retirement. We promise to challenge your current beliefs and open your eyes to the pitfalls of relying solely on government plans for a secure financial future, and why we call it the retirement trap. Join us as we scrutinize Nelson Nash's Infinite Banking Concept as we continue reviewing Becoming Your Own Banker, a game-changing perspective on personal finance control.https://www.youtube.com/watch?v=EeYJuNTZBuUWe'll unpack Nash's audacious prediction - the demise of social security, and its potential propping up using reserves like private pension plans. Exploring the history and evolution of social security since 1935, we'll reveal how this system has been a crutch for failing social programs. Uncover the importance of being in charge of your own finances, countering the fear of running out of money. Embrace a fresh perspective on retirement, replacing it with the concept of ownership. Listen in as we encourage continuous work and service to others, all while honing your skills. Learn how to break free from the government's influence on your income and escape the retirement trap it creates. We'll show you how to transform your life and business into something you love, by seizing control of your finances. Tune in, and let's together model successful people, reflecting on the difference between being controlled and being in control.Join us as we continue the series through Nelson Nash's work, Becoming Your Own Banker, to discuss the pitfalls of social security, pensions, retirement, and why you are better off without them.Rethinking Retirement as a Financial GoalWhat is the Retirement Trap?Government-Sponsored Retirement Traps AccountsHow Can You Avoid the Retirement Trap?The Value of OwnershipBook a Strategy CallRethinking Retirement as a Financial Goal[06:50] “[Nelson] talks about how the American people are programmed both willingly and unwillingly.”What we mean by this is that we are constantly being bombarded with information, advertisements, and opinions that influence our worldview, both intentionally and unintentionally. We absorb so much about every conceivable topic, and the way most people view retirement is no different. Narratives are being fed to us about the “right” way to retire. The question is, are these ideas really helpful? And do they actually serve your personal goals for your money? We want to urge you to rethink your worldview, even if your ultimate conclusion stays the same. Because without that examination, how can you know that you have all the information you need to make the best possible decision for you? So today, we’re looking at the typical worldview of retirement, and asking the question: Is retirement what you should be striving for? What is the Retirement Trap?Retirement, and the concept of Social Security, is a socialist idea. It requires you to give up some financial control now by paying into the system so that in the future the government can supply what you need. This is the very zoomed-out perspective of the situation, but it begs the question: How much can you rely on the government to take care of me, and why should you?The earliest and simplest form of retirement was created as a way to take care of people who lived well beyond the life expectancy of the time because people generally worked their entire lives. In essence, this system was only meant to take care of those outliers that lived beyond life expectancy and perhaps couldn’t work. Now, life expectancy far exceeds age 65 or 70, and it’s a system we still implement. The problem is that when you relinquish control of your future earnings to the government, you have to trust them to provide. They’re in control, and your income is at their mercy unless you can otherwise supplement it. It’s not a reliable or sustainable way to live....
Change isn't easy. It's almost always more comfortable to stay the same than it is to do something new. https://www.youtube.com/watch?v=ENHUPQ6oblQWhat if the secret to financial freedom was already within your grasp, waiting for you to seize it? That's exactly what this episode of our podcast is about: the Infinite Banking Concept and the important role that desire and mindset play in it. We'll guide you on the journey to being your own banker, starting with battling negative thoughts and stepping into a positive mindset, as well as the 3 things you need to get started with Infinite Banking. We also share nuggets of wisdom from Nelson Nash on the importance of capitalizing on your system and the critical need to understand Infinite Banking fully. Embrace Change3 Things You Need to Get Started with Infinite Banking1. Desire2. Patience3. EnvironmentBook A Strategy CallEmbrace ChangeChange is difficult and uncomfortable, however, you must have the desire to change in order to prepare yourself for Infinite Banking. Otherwise, you cannot go through the paradigm shift necessary to benefit from IBC. It's a completely different way of thinking than most people have been taught, and that can bring up some uncomfortable thoughts. The power of stepping outside of your comfort zone is that the catalyst for this action is often discomfort, too. So when your current discomfort becomes more unbearable than going through change, you're ready to grow. There's almost nothing you can do but go "up," so to speak. No matter how you're feeling, remember that the discomfort is temporary, and it serves to move you to the next phase of your life. It moves you to seek comfort, and you'll find it. If you’re ready for this journey, there are three things that Nelson Nash shares in his book that are essential for you to implement in your life, or otherwise embrace, to begin using the Infinite Banking Concept. 3 Things You Need to Get Started with Infinite Banking1. DesireTo become a person who uses the Infinite Banking Concept, you have to have a strong desire. It's easy enough to say you want to use Infinite Banking. However, sometimes wanting to do something isn't enough. After all, there are dozens of other things you might want even more. And if your habits don't support your desire, it's going to be an even harder battle. Humans are complicated, and we have a lot of very human forces working against us. Parkinson’s law, for example, reflects our very human desire to spend the money that we have. Yet this law is the antithesis of Infinite Banking, which is about saving the money that we have in order to make better use of it later. Unfortunately, because most people are compelled to spend, they build habits that are hard to break. Your desire to implement IBC and use it to better your financial life has to be stronger than your human nature. It has to be stronger than your desire for other things. Each of us has to find our own compelling reasons to buy a life insurance policy—family, a dream career, security. Without those reasons guiding us, overcoming bad financial habits can be hard. More than that, your desire can’t simply be to outrun your bad habits. Doing so starts your journey on a negative foot, and brings other baggage with it, like shame and fear. You have to find reasons to use IBC that are rooted in the positive impacts it can have on your life. Again, what's most important to you in this world, and how can IBC help you support and protect those desires?2. PatienceOnce you’ve established a desire for growth that is stronger than your desire to stay where you’re at, you’ll need patience. Whole life insurance, the preferred vehicle for executing the concept of Infinite Banking, is a long-term product. You’ll be funding this policy, ideally, for as long as possible over the course of your life. [29:57] “Without patience,
Infinite Banking gives you the advantages of cash value, dividends, and a death benefit that all grow over time, making a policy more and more attractive the longer you have it. And the methods to fund your policy are as unique as you are. Because you have a need to pay for things during your lifetime, the IBC capitalization of whole life insurance addresses this need head-on. https://www.youtube.com/watch?v=kwWoL_l3x-sRather than thinking of your life insurance and your large ticket purchases as two separate things, Infinite Banking demonstrates a system to do both. By financing large purchases like cars, equipment, and rental properties with your Infinite Banking policy, using it to control the banking function, you can add dollars into the policy that make it perform better over time.Unlock the secrets to controlling your own finances with an in-depth exploration of Nelson Nash's "Becoming Your Own Banker." Experience the power of capitalizing a policy that provides greater acceleration, increased cash value, and dividend returns, and learn how this process allows you to reap the benefits of the Infinite Banking Concept. We'll also tackle the human condition's impact on understanding and utilizing this concept, and how personal growth and mindset shifts are necessary to maximize these benefits.Discover how to finance equipment using infinite banking, focusing on maximizing your policy's value. Listen as we break down Nash's method: financing a policy for just four years, then using dividends and a slice of the death benefit to pay the base policy. We'll also delve into the potential of combining a policy with equipment financing, forming a powerful financial tool that helps you purchase assets without traditional financing.What If You Don’t Want to Capitalize As Long As Possible?Using Your Money After IBC CapitalizationCan You Pay Additional Interest?Book A Strategy CallWhat If You Don’t Want to Capitalize As Long As Possible?Last week, in our conversation on capitalization, we concluded that if you want the maximum amount of cash value growth, you’ve got to maximize your capitalization. That means paying all of your base premiums and all of your PUAs for as long as you possibly can. However, there may be reasons that you can’t do this, or don’t want to do this. After all, life happens unexpectedly, and sometimes we have to pivot our plans. That’s why Nelson offers an alternate option in his book. What if you only maximized your capitalization for 4 years? Then, after that, you started to use the policy, and you found other ways to fund the premium? While his example may feel extreme, it highlights just how flexible whole life insurance can be—that even in four years, your policy can basically pay its own premiums. He does this by surrendering the dividend and using it to fund the base premium only—no PUAs. However, in four years, the dividend isn’t quite high enough to do this fully, so he also surrenders some death benefit. This reduces his base premium, making it possible for the dividend to fully cover the base premium if he chooses. Using Your Money After IBC CapitalizationSo let’s examine Nelson’s method in this chapter. After he pays premiums with the dividend, he recommends using the banking function. In other words, it’s time to finance a purchase. In his particular example, he has a little over $159,000 of cash value. And in order for the insurance company to make money off of that, they have to lend an equivalent sum to someone. So, of course, they’re going to lend it to you. When the insurance company lends you money, they’re giving you their money, not yours. Instead, they put a lien against your cash value. That way, if you don’t pay, you can consume your cash value to reduce the loan (however, you don’t want to do this if your goal is to have a large pool of capital). What you want to do is diligently pay your loan back, at the very least,
In this episode, we discuss how our new book, "Seven Generations Legacy," serves as a guide to creating a lasting legacy for future generations. The discussion emphasized the significance of leaving behind more than just material wealth. https://www.youtube.com/watch?v=lRTFIUmxw20In the world of wealth management and estate planning, the term "legacy" is often used to refer to the financial inheritance we leave behind for our loved ones. However, legacy extends beyond monetary value and encompasses our values, traditions, and life lessons that are passed down to future generations. (0:01:00) - Design a Multi-Generational Legacy (10 Minutes)(0:10:45) - Near-Death Experience and Reflection on Family (14 Minutes)(0:24:33) - Book Pre-Order Special Offers (11 Minutes)(0:35:18) - Seven Generations Legacy Planning and Meaningful Inheritance (13 Minutes)(0:48:40) - Passing on Generational Wealth and Legacy (15 Minutes)Book a Strategy Call(0:01:00) - Seven Generations Legacy: Design a Multi-Generational Legacy (10 Minutes)This segment explores the importance of legacy planning and creating a multi-generational legacy beyond just money. We discuss the questions and concerns many people have about what will happen to their children and their values after they pass away. Introducing our new book, "Seven Generations Legacy: Design a Multigenerational Legacy of More than Money" we explain how it can help readers create a lasting legacy for their families. Gain insight into the importance of legacy planning and how this book can guide you in creating a meaningful and impactful legacy for future generations.(0:10:45) - Near-Death Experience and Reflection on Family (14 Minutes)This segment explores the personal experience of the host, Rachel, who faced severe health complications after delivering her second daughter. Rachel shares her near-death experience and the miraculous recovery that followed, highlighting the emotions and realizations that came with this life-threatening event. The conversation delves into the understanding that life is a precious gift and emphasizes the significance of each individual's purpose within their family. (0:24:33) - Book Pre-Order Special Offers (11 Minutes)This segment explores the topic of legacy planning and how to leave a financial inheritance for your children without negatively impacting their character and stewardship. We discuss the power of money and how it can magnify one's soul, emphasizing that it is neither inherently good nor bad. Building strong relationships within the family, especially between spouses, is crucial for creating a cohesive and unified legacy. We also offer a special pre-order bonus for our listeners, including the audiobook and e-book, as well as tools for building resilient relationships and getting started with estate planning. Additionally, we reveal a special bonus on how to train children for financial stewardship. Overall, this chapter provides valuable insights and practical tools for creating a lasting legacy for your family.So, when you pre-order your copy (BY DECEMBER 9TH), just email a screenshot of your purchase to hello@themoneyadvantage.com, and we’ll send you your AUDIOBOOK + E-BOOK you can read right away, PLUS the Financial Literacy Lessons ABSOLUTELY FREE!https://www.amazon.com/Seven-Generations.../dp/B0CN1RX8H8(0:35:18) - Seven Generations Legacy Planning and Meaningful Inheritance (13 Minutes)This chapter explores the main problem with typical legacy and estate planning, which often overlooks the deeper meaning behind the legacy. Instead of solely focusing on money and legal structures, we discuss the importance of considering the values and intentions behind leaving an inheritance. We also touch on the "shirt sleeves to shirt sleeves" proverb, which highlights the common downfall of generational wealth. To break this curse, we emphasize the need to develop not only financial capital,
The glitz and glamour of the affluent world may seem highly appealing with its endless opportunities and vast resources. However, successful parenting within this context can present unique and sometimes complex challenges. This complexity stems from the need to balance comfort and indulgence with long-term development and well-being. https://www.youtube.com/watch?v=Ob4I7dL6whkIn this episode, renowned expert Dr. Lee Hausner shared her invaluable insights into navigating these dynamics successfully, providing a roadmap for parents in affluent families. Exploring the Key Challenges of Successful ParentingPractical Strategies for Successful Parenting in Wealthy HouseholdsThe Role of Parenting in Developing Human CapitalAddressing Discipline and Social Media ImpactIn ConclusionAbout Dr. Lee HausnerBook a Strategy CallExploring the Key Challenges of Successful ParentingThe abundance of resources in affluent families can bring about unique challenges in parenting. The primary concern, as identified by Dr. Hausner, is the struggle to balance comfort and long-term well-being. Wealthy parents, driven by their desire to provide the best for their children, often unintentionally create a chaotic environment. The crux of the problem lies in overindulgence. Excessive pampering and providing for every whim and fancy of the child can inhibit their development. This hinders the child's ability to grow into competent, confident, and resilient individuals who can navigate life's ups and downs successfully.Practical Strategies for Successful Parenting in Wealthy HouseholdsTo counter these challenges, Dr. Hausner outlines several practical strategies that parents can adopt for successful parenting within wealthy households. She strongly advocates for the fostering of resilience and competency in children. By exposing children to situations where they can overcome obstacles and bounce back from failures, parents can build their resilience and equip them with the skills to handle life's challenges. Additionally, teaching children values like delayed gratification can help counter the immediate gratification culture that is prevalent in today's society. This skill is particularly important in affluent families where children can have access to whatever they want instantly. Dr. Hausner also stresses the need for parents to be intentional in their parenting. Rather than succumbing to the pressures of providing everything, parents should be purposeful in their decisions and actions. This includes instilling a sense of responsibility and independence in children, teaching them to take ownership of their actions and decisions.The Role of Parenting in Developing Human CapitalIn the podcast, Dr. Hausner introduces the concept of 'true wealth' that extends beyond material possessions. She elaborates on the crucial role parenting plays in developing human capital, which is about preparing the next generation not just for the inheritance of passive wealth, but for actively managing and growing it. The role of a trustee in wealth distribution also becomes significant in this context. Dr. Hausner introduces the four capitals of wealth: human, intellectual, financial, and social. Each of these aspects needs to be developed to create a balanced, well-rounded individual. The focus is on building a comprehensive set of skills and abilities in children, equipping them to handle the wealth they inherit and use it responsibly and effectively.Addressing Discipline and Social Media ImpactThe podcast also delves into the importance of effective discipline and the impact of social media on children's well-being. Dr. Hausner emphasizes the need for setting clear rules and consequences for children. These need to be communicated effectively and implemented consistently to ensure discipline. Changes in parenting approaches, if required, should be done in a positive and constructive manner.
Prepare to elevate your financial game as we unravel the infinite secrets in Nelson Nash's Infinite Banking concept. Promise yourself a brighter financial future armed with the knowledge of how you can start controlling the banking function in your life, maximizing your cash value, and creating a lasting legacy. https://www.youtube.com/watch?v=xBWRAq4WcNsWe’ll reveal how to strategically capitalize your banking system so that you can experience the power of Infinite Banking in your life and legacy. Dividend-paying life insurance makes everything you’re already doing in your financial life better—financing, income, saving, investing, and leaving a legacy. That’s because you gain a banking system that produces compounding interest and dividends that you can use in various ways. As we navigate through Nash's infinite banking concept, we shed light on taxable income and financing in banking. We break down how this concept can be used to finance significant purchases, using a logging truck as a case study. We also offer valuable tips for success in business, reminding you that understanding the perspective behind the words is pivotal to applying the Infinite Banking concept in various financial scenarios. We're excited to share these insights and encourage you to consider booking a session with an advisor to fully leverage this concept. Let's together create an empowering financial future!The bottom line is that capitalization drives your ability to reap the benefits. The more you capitalize, the greater your advantages. How you capitalize and the methods you use are a matter that requires looking at your personal situation and playing your cards best, whatever hand you are dealt.Controlling the Banking FunctionCapitalization is Key Other Ways to Capitalize an IBC PolicyHow Long Should You Capitalize? Book A Strategy CallControlling the Banking FunctionWhen we talk about the Infinite Banking Concept, it's critical to understand that IBC refers to the banking function, not the asset you use (whole life insurance). So what does it mean to control the banking function? Controlling the banking function is about replacing the bankers in your life and, as the title of Nelson Nash's book suggests, becoming your own. You're NOT becoming the bank, however. What it means to be the banker is to be in control of how you save, store, and invest your capital. You're in control of moving money and approving major financing, rather than relying on someone else to do it for you. And in order to control the banking function in your life, you have to have capital. That's where whole life insurance comes in. Whole life insurance is an ideal place to store and grow your capital for many reasons, namely that you get to partake in safety, liquidity, and growth. Many assets only offer two of the three components, maximum. Controlling the banking function doesn't stop there, though. You've got to fund the asset, which Nelson also calls the capitalization phase. This is central to the Infinite Banking strategy.Capitalization is Key [10:30] “The end conclusion of this chapter is that the most cash value and the most death benefit at the end of the policy–the way you get that–is to capitalize the most. And what you can do to capitalize the most is to pay all of your base premium and all of your paid-up additions stacked together…all the way out [for] as long as possible in the policy.”Capitalization is how you build your capital, and you only do that through contributions. This is a big reason that cash value acts like a savings vehicle—because those premiums and PUAs contribute directly to cash value growth. The more you maximize your payments each year, the more capital you’ll build–now and later. So if you plan to use the living benefits of your whole life insurance, you’ve got to capitalize. You should want to pay as much money as possible because that’s going to create the foundation for your...
Unlock the secrets to infinite banking in this power-packed episode. We guide you through the intricate steps of using whole life insurance as a tool to gain financial freedom, inspired by Nelson Nash's groundbreaking book, "Becoming Your Own Banker". Learn the advantages and drawbacks of this system, and pick up practical tips on finding more money to capitalize a policy and pay more premiums. This episode is designed not just for the financially savvy, but for anyone who dreams of a more secure financial future.https://www.youtube.com/watch?v=HdpC6ZiIyEMOne of the greatest barriers to achieving financial success is a lack of education and understanding. Let's break down these walls together as we discuss the stigmas and misconceptions surrounding the Infinite Banking Concept. We delve into Nelson Nash Institute's ambitious mission to broaden awareness and comprehension of infinite banking. Relying on the right people and the right knowledge will guide you towards a more solid financial standing.Imagine being able to finance multiple items like cars or even a mortgage through infinite banking. In this episode, we shed light on the infinite possibilities of using your income and assets to fund more policies. We explain how whole life insurance can be your stepping stone to accumulate wealth and how you can make your financial dreams come true. We also stress the importance of consulting with experienced advisors to get the most value out of your policies. So come on board and take control of your financial future with us. It's time to break free from financial constraints and build a plan tailored to your unique needs.Your Income Should Match Your PremiumHow Policy Design Affects PremiumMEC LimitsThe Value of Long-Term Thinking to Pay More PremiumsBook A Strategy CallYour Income Should Match Your PremiumThis is what Nelson Nash believes is the ultimate goal for someone practicing IBC. And yet, no one starts out at this level—it’s not possible. You’ve got to start where you’re able and slowly build your way up, increasing your premiums by increasing your portfolio of insurance policies over time. The first reason you can’t get all of your income running through a policy is because the insurance companies place factors on your income that limit how much insurance you can buy. This is because your death benefit acts as income replacement, and is therefore a factor of your income. If you’re aged 18-35, you can get a death benefit of 35 times your income. To give you a snapshot, from age 46-50, you can get 20 times your income, and from 66 and up you can get 5 times your income. This factor decreases because your number of remaining working years (at least by typical standards) is decreasing. And since insurance covers your income, the insurance companies are only looking at how much income you would earn in these assumed working years. All of this is a part of the Human Life Value calculation, which is essentially your economic replacement value. How Policy Design Affects PremiumThe way your agent designs a life insurance policy will also impact your premium. Of course, some factors you cannot change—your age, health, and other income will contribute to the amount of premium you pay relative to your death benefit. However, an agent can design your policy to be structured with a blend of base premium and PUAs that can allow you to contribute even more premium to your policy. [27:35] “One reason for why you’d want to put more premium dollars into a life insurance policy is if you realize that if I put a hundred dollars a month into a policy and that will earn me dividends and interest, and when those dividends are paid back into the policy I will earn dividends on those dividends. That’s going to allow me to have that compound growth over time that is going to be a tremendous wealth builder over decades and over generations. And I want that kind of generational wealth-building too...
Join us on an enlightening journey with our guest, Becca Wilhite, a certified IBC practitioner, as we explore her personal path into the world of the Infinite Banking Concept and the IBC Practitioners Program. From a basketball player to a worship leader, Becca's eclectic background is fascinating, and her initial skepticism towards life insurance is something many of us can relate to. We share how she overcame her doubts and discovered the power and potential of life insurance through extensive research and experience.https://www.youtube.com/watch?v=HU5uSEWjflAIn our enlightening conversation, we get down to the very basics of the Infinite Banking Concept, debunking myths and misconceptions about life insurance. We shed light on the importance of capitalizing and the surprising flexibility of premium payments. Not to mention, our examination of the Dave Ramsey approach and how it has influenced people's beliefs about money and insurance. And trust us, there's more to this journey than meets the eye. What's more? We also discuss how Infinite Banking can be used practically in everyday life, from paying off debts to buying homes and cars, and even saving for your children's future education. Becca and our co-host Cole share their insights and experiences, showing us that Infinite Banking is not just a financial strategy, but a way to reclaim financial freedom. So, get ready to challenge your beliefs about money and discover a new perspective with us. Let's take this enlightening financial journey together!Introducing Becca WilhiteThe Problem with the Dave Ramsey ApproachWhy Whole Life Insurance for the Infinite Banking Concept?What is the Hardest Part About Life Insurance Education?Paying InterestThe Infinite Banking Concept is a Way of LifeBook A Strategy CallIntroducing Becca WilhiteBecca didn’t always want to be an insurance agent. Before that was even an option to her, she was a basketball player, an avid traveler, a teacher, and even a worship leader. Insurance wasn’t on her radar. When some friends got into whole life insurance, she couldn’t be LESS interested. After all, she was also a huge Dave Ramsey fan. Finally, she decided to go to one of the presentations, if only to protect her friend from making a bad financial decision. And that’s where Becca’s path changed drastically. [04:35] “I went with my guard completely up, ready to just pick this thing apart. But what I found instead was [that] I never knew that life insurance could do that… So it made me curious.”Armed with a dose of skeptical curiosity, Becca started to read books, like Becoming Your Own Banker, that would help her understand. It wasn’t because she was totally on board yet—she was still determined to “expose” the truth, certain that Dave Ramsey couldn’t be wrong. [05:46] “The more I read, the more I studied, the more interested I got. [I was thinking], this is so different from the status quo, this is so different from what we’ve been taught. I don’t think it’s wrong anymore.”This led to Becca opening her first life insurance policy and working with an IBC life insurance agent. However, Becca was still pretty “green,” as she puts it. She didn’t just want to have whole life insurance, she wanted to know how it works and learn more. So Becca reached out to The Money Advantage about mentorship opportunities and found her way onto Bruce’s calendar. The Problem with the Dave Ramsey ApproachDave Ramsey is certainly a person with conviction, and we don’t want to downplay the good that he’s done for people. Many people struggle with debt, and his approach is helpful. However, Dave also tends to parrot a lot of things that simply aren’t true—about mutual funds, which is what he recommends, and about whole life insurance. And this can be detrimental to people who could really benefit from capitalization more than anything. One of Dave’s common talking points is that mutual funds can offer an uninterrup...
Want to see firsthand how financing with Infinite Banking will help you come out ahead?https://www.youtube.com/watch?v=E8vTK1dhZWUGet ready for a mind-shift as we journey through the concept of infinite banking, as presented in Nelson Nash's groundbreaking book, Becoming Your Own Banker. We promise to challenge your conventional thinking about storing capital and show you a more profitable way of managing your money. This episode uncovers the benefits and nuances of this method, contrasting it with five different ways of purchasing items and revealing why the Infinite Banking Concept could be the game changer you need.The heart of this episode is a detailed examination of infinite banking, where you play multiple roles, from the policyholder to the depositor, customer, and owner. We illuminate the advantages of this system, using the example of financing a car purchase over 44 years. By comparing this with leasing, bank financing, cash, CDs, and whole life insurance, we uncover the superior potential of the infinite banking system. We highlight not just the numbers but a fundamental, more profitable shift in thinking.Lastly, we delve into the nitty-gritty of capitalizing life insurance policies. This method stands apart from other methods and requires discipline and long-term thinking to see uncommon results. We stress the power of capitalizing and how it can enable you to secure static payments for large ticket items and a robust future. This episode is all about unlocking the incredible potential of thinking like a business and understanding the key players in the game: the policy owner, the life insurance company, the dividends, and the death benefit. Tune in, and let's change your financial future together.Join us for this discussion of life insurance, infinite banking, and building wealth!powerpress]Rethink Your ThinkingNelson’s Car-Financing StrategyWhy is IBC So Effective for Car Financing?Other Methods of Financing:Book A Strategy CallRethink Your Thinking[05:20] “IBC is a way of life. It’s not something that you’re just going to try.”In order to execute an infinite banking strategy, you have to be willing to completely rethink your thinking. IBC is about storing capital—that’s something you’re already doing, regardless of your background. Whole life insurance is simply the vessel for storage, and by rethinking what capital storage means to you and what it can do for your life, you’ll be able to create life-changing financial strategies. IBC isn’t magic. It’s just strategy, and you can benefit from it by being receptive to learning new things and challenging your existing worldview about money. [07:40] “Remember, this is about the human condition and changing your human condition. That is more important than the numbers.”Nelson’s Car-Financing StrategyIn this instance, we want you to rethink your thinking about what it means to finance purchases. In this case, we’ll talk about car financing. There are many opinions on how to do it—pay cash, do a short-term loan, etc. In Becoming Your Own Banker, Nelson Nash shares his strategy for financing a car every four years.The basis for this strategy is, of course, whole life insurance, which provides your pool of capital. The advantage of financing via policy loan is that you can set your own amortization schedule, and you can buy a car without losing the ability to earn interest and dividends on the full amount of your capital pool.This not only puts you in complete control of your payment circumstances, but it also makes your banking system more efficient. Why is IBC So Effective for Car Financing?What makes whole life insurance so efficient? The answer is opportunity cost. Opportunity cost refers to the cost of one financial decision over another. When you pay for something in cash, you lose the ability to invest that cash somewhere else. So not only are you losing the initial capital,
Have you ever paused to ponder the legacy you're creating, the inheritance you're accumulating, or the lasting impression you're leaving behind? The thought can be heavy, even daunting - but it's a conversation worth having. With a focus on infinite banking and the inevitable death benefit that will be left to your heirs, we venture into the complex terrain of legacy and inheritance. For some, this is a familiar landscape, for others, it's a concept that's met with conflict. Either way, this episode aims to shed light on the obstacles that accompany the journey of leaving an inheritance.https://www.youtube.com/watch?v=z4jwxj6lMEQLooking beyond the immediate, we explore the significance of long-term thinking when it comes to your finances. Drawing wisdom from Proverbs 13:22, we discuss the idea that a good person leaves an inheritance to their children. This principle, when applied to financial decisions, fosters informed choices that benefit not only you but future generations as well. With the help of Nelson Nash's five principles for creating a robust banking system, we delve deeper into the impact of long-term thinking on the process of wealth accumulation and how money, neither good nor bad, is merely a tool that magnifies one's character.If you’re using Infinite Banking, you’re automatically building an inheritance as well. But inheritance is an emotional word. Maybe you’re opposed because it creates problems, feels like it’s too difficult, impractical, or overwhelmed by how to do it well.Tune in as we talk about long-term thinking, generational wealth, and what’s really best for your kids.How Infinite Banking Leads to Legacy3 Reasons to Leave an Inheritance1. The Bible Directs Us to Leave an Inheritance2. Long-Term Thinking Helps Us Make Better Decisions3. An Inheritance is Actually Good for Your KidsBook A Strategy CallHow Infinite Banking Leads to LegacyLegacy: it’s the impact you leave behind. For many people, legacy is about what mark they make on the larger world. It’s what people remember them for; their memory. However, legacy can also be financial–and inheritance–and can impact your family not just for a generation, but for many generations when done properly. The wonderful thing about Infinite Banking is that with it, you’re actually creating your legacy in the background with little effort. While you’re building cash value, you have the death benefit waiting in the wings to be paid to your heirs. This financial legacy is the most efficient way to pass wealth from one generation to the next because you lose as little as possible to taxes, fees, and creditors. Meaning that you can keep your money in the family and provide a basis for the next generation to grow their wealth beyond what you accomplish in your lifetime.Life insurance isn’t just for leaving a legacy to your family, though. It’s also possible to use it to leave a legacy to your favorite charities and institutions as well. Regardless of where your money goes, we all need a really powerful reason to motivate us to leave an inheritance. There can be a lot of feelings and emotions tied up in the idea of an inheritance, and some people choose not to leave one at all. If you’re on the fence about leaving a legacy, tune into our conversation as we talk about three reasons to leave an inheritance. 3 Reasons to Leave an Inheritance1. The Bible Directs Us to Leave an InheritanceIn Proverbs 13:22, the Bible states that a good person leaves an inheritance to his or her grandchildren. The interesting thing about Proverbs is that it’s all about principles to live by, rather than promises from God. It comes directly from the wisdom that God gave to Solomon, so it’s a great source of inspiration when you’re seeking clarity on principles to guide your own life and understand the world by. If you look at the rest of scripture, it becomes clear that generational lines are of paramount importance.
Prepare to unravel the mystique behind funding and overfunding life insurance, and the empowering concept of becoming your own banker. This episode holds the key to understanding how to fund a life insurance policy, maximize its cash value, and reap the benefits. Our human-centric approach puts you, the listener, at the forefront as we examine how to expand your contract and build additional ones to create your own holistic financial system.https://www.youtube.com/watch?v=0vyR5l4w3WoWe dive right into the heart of constructing a life insurance contract that prioritizes both cash value and death benefit maximization. Intricacies of balancing ordinary life, term, and single premium by contract components are laid bare, aiming to achieve the optimal cash value to death benefit ratio. We also confront the challenges of adding a single premium paid-up addition to a contract and the complications that arise when human life value is exceeded—all in the pursuit of financial freedom and security.Lastly, we venture into the evolution of universal life insurance over the past quarter-century, with a special focus on its transformation following the 2001 stock market crash. The allure of universal life, index universal life, and variable universal life are scrutinized, revealing their potential pitfalls and unpredictability. Before we sign off, we arm you with a list of recommended readings to further your understanding. Included is Nelson Nash's enlightening book, Becoming Your Own Banker, as we champion the importance of financial literacy and independence. Tune in and embark on this enlightening financial journey with us.Join us for this insightful look at life insurance, infinite banking, and gaining financial control!Overfunding Life InsuranceThe Importance of Policy DesignHow Long Should You Fund a Policy?What if You Want to Shorten Your Payment Window?What is Reduced-Paid-Up?Book A Strategy CallOverfunding Life InsuranceWhen you fund a life insurance contract, there’s only so much you can add into a policy—relative to the death benefit—before it becomes something else entirely. When you overfund, or add too much PUA into a policy, it actually changes from a life insurance policy to what’s called a modified endowment contract, or MEC. The precedent for this is written into the tax code, and is the IRS’s way of making sure that people are not funneling al their money into life insurance to avoid taxes. After all, cash value grows in a tax-advantaged way, and you can actually experience it tax-free over your entire life if used correctly. When a policy becomes a MEC, it loses the tax benefits, and becomes an ordinary taxable account. Meaning that you’ll have to pay taxes on the growth of the policy, when you access the funds. While this does make a policy less efficient, some people may be okay with a policy becoming a MEC under certain circumstances. The Importance of Policy DesignWhen you’re designing a policy, it’s easy to think that the best possible design is to have the lowest premiums relative to your death benefit. However, that’s not strictly true with life insurance. The more you put into an insurance policy, the more early cash value growth you can have. And so in most cases, you want to cozy up as close to the MEC limit as possible. At the very least, you want to aim for that.However, you also have to consider your priorities. Do you want to prioritize a higher death benefit in the early years, or higher cash value? This is going to depend on what assets you already have, most likely. But once you know the answer, you’ll know whether you want to maximize PUAs or not, and toe that MEC limit. The reason “base” premium doesn’t toe that MEC line is simply because it’s pure equity in the death benefit. Actuaries do a great job of calculating exactly how much you need to pay for your cash value to equal your death benefit at endowment. PUAs, on the other hand,
Are you a new agent or looking to join the insurance industry, and wondering exactly just how and where to get started?https://www.youtube.com/watch?v=R9HQ313aNS0In today's podcast, Bruce and Rachel will help you know how to set up your business, how to get licensed, and what you need to know about joining an insurance IMO or a life insurance FMO, or better yet why you should not join an IMO.This episode promises to help you unravel the multiple layers of the insurance industry—especially useful if you're an agent kick-starting your career or a business owner considering your options in the field. We tackle the complex question of whether to join a general agency, an independent marketing organization (IMO), or a field marketing organization (FMO). Get ready to absorb invaluable insights that will help you make your mark in the insurance landscape. So, let's embark on this enlightening journey together!What Happens After New Agent Licensing?What is a General Agency?What is an IMO?First StepsResourcesBook A Strategy CallWhat Happens After New Agent Licensing?After you get licensed to sell life insurance, you have to get appointed with a life insurance company to write contracts. You can do this through a general agency, or you can choose a more independent route. The problem is that most newly licensed agents can’t just call up an insurance company and get appointed. The insurance companies won’t agree, because they don’t want someone with no experience selling the product. After all, they don’t know whether this person can write good business, or how they’ll represent the product to clients. It’s safer for insurance companies to appoint new agents through an agency or an organization that can provide training and support. What is a General Agency?[05:50] “A general agency is a person or entity that has already had the experience. They get appointed with an insurance company to sell their products, and then you can get appointed under them. And they, supposedly, are going to help you along in the business.”Often, this general agent or agency is only appointed with one insurance company, although it’s possible for them to be appointed with several companies.This can be one of the best ways to get into the industry because the agent already has a direct relationship with the insurance company and with you as well. This means they have a more vested interest in your growth and can be a real mentor to you.What is an IMO?IMO stands for independent marketing organization and is one kind of organization that you can get appointed to as a new life insurance agent. These are also called field marketing agencies, or FMOs.These organizations do a lot of marketing in order to get agents, and you often don’t have a direct relationship with the agent at the top. These organizations are less concerned with how you fit into the company culture and may value quantity over quality. This can be an incredibly frustrating way to start your journey if you don’t yet know the ropes.On the other hand, you might have a lot more freedom to run your business the way you desire. You may also get some training and marketing solutions that can help you get off your feet. However, it’s known that marketing companies may keep bonuses from the insurance company, and offer less-than-favorable compensation structures for agents. In other words, it’s possible you might get less money per contract through a marketing agency. First StepsAfter you figure out how you want to get appointed with a life insurance company, you want to think about setting up your business. You don’t necessarily need to set up a business entity, however you do want to set up a different bank account to collect your revenue. It doesn’t have to be a business bank account, it can be a personal account. You want to keep it separate. This will help you in the long run, especially in tax season. Then,
Get ready to rethink your thinking about the cost of life insurance and, more importantly, the process of Infinite Banking. Our journey leads us to insights from Nelson Nash's book, giving us a fresh look at how to balance life insurance and the Infinite Banking Concept. We'll tackle the life insurance company's pricing strategy and discuss how the process of creating an entity for Infinite Banking works.https://www.youtube.com/watch?v=x-hjCfhC_ewOur exploration doesn't stop there! We delve deeper into the Commissioner Standard Ordinary Mortality Table and its role in life insurance pricing. By examining the thrilling world of actuarial science, we'll understand how mortality tables are updated using data collected from millions of lives. We'll discuss how aspects like age, gender, health, and lifestyle habits are considered when setting the price of life insurance.Furthermore, we'll delve into why having life insurance beyond the traditional retirement age is crucial and how part-time work can be a significant advantage in this context. Join us for this in-depth discussion and learn more about life insurance, Infinite Banking, and their financial implications!Creating Your Banking EntityLife Insurance UnderwritingLongevity and Life InsuranceBuy, Don’t Rent: The Cost of Life InsuranceBook A Strategy CallCreating Your Banking EntityAt the crux of Becoming Your Own Banker, as the title suggests, is that you are going to become your own banker. Not your own bank. Therefore, you need to establish a banking entity outside of yourself. And what Nelson believed to be the ultimate place to do this was whole life insurance. Primarily because the policy loan provision makes it perfectly structured to leverage your capital as bankers do. So if you want to establish your banking entity, you need to buy life insurance.Life Insurance UnderwritingFirst and foremost, life insurance, like all insurance, is about mitigating risk. For you, the person buying the insurance, you’re mitigating the risk of not living long enough. If you don’t, the life insurance company will pay money to your loved ones so that they are cared for financially in your absence. This means that insurance companies need to be cognizant of their customers’ mortality so that they don’t overextend themselves. If companies insured anyone and everyone, they’d quickly go bankrupt paying death claims on people who died too soon. Since death is guaranteed, the insurance company is insuring people who are unlikely to die too soon. That way death claims become manageable because they’re more likely to be accidents or surprises in the early years. To ensure that policyholders are likely to have a long life ahead of them, insurance companies require underwriting. This includes a health exam and lifestyle questionnaire that companies can use very accurately to predict longevity. You’ll get a rating, which determines your eligibility. The better the rating, the better the premium you can get for your death benefit. [19:50] “They know how many people of certain health will pass away at certain ages. They do not know who. So [your rating] is in no way the insurance company saying ‘I’m God and I know exactly when your days are numbered and here’s the day that you’re going to pass away.’ They do not know about your life.”Longevity and Life InsuranceMany people think of retirement and life insurance as related. If you stop working and earning an income at age 65, then you don’t need insurance to protect your income anymore. While this may satisfy some people, the truth is that your need for insurance doesn’t stop at retirement, nor should the retirement benchmark really be 65.If you live to age 60, your life is likely going to be much longer than you think. That’s because the longer you live, the longer you can expect to live, thanks to actuarial science. And because you can expect to live many more years,
Ready to gain a new perspective on how interest rates affect the economy? What about how interest rates and whole life insurance relate to each other? Let us illuminate Nelson Nash's wisdom on adopting a lifestyle that resonates with the Infinite Banking Concept without stretching yourself too thin. We also stress the need to take a panoramic view of your financial situation and the significance of long-term thinking.https://www.youtube.com/watch?v=LLz8bJJh4iAFinally, we will be your sherpa as we climb the mountain of financial control and self-education. We'll explore why people often settle for financial misery and resist investing time to learn wealth-building techniques or modify their habits. We'll also highlight the value of understanding the concept of Whole Life Insurance to maximize its benefits. Prepped for this journey? Join us and be prepared to expand your financial knowledge and planning prowess.How Does Whole Life Compare to Other Assets?What Nelson Says About Whole LifeAre You Afraid to Capitalize?Dividends, Interest Rates, and Whole Life InsuranceLife Insurance IllustrationsBook A Strategy CallHow Does Whole Life Compare to Other Assets?[02:02] “The thing that people don’t realize is that as you devalue currency, interest rates tend to go up. And when interest rates tend to go up, then dividends follow. Historically, they’ve always followed.”So, while people expect their assets to be devalued in such an inflationary environment, life insurance does the opposite. This is mostly because insurance company’s investments are heavily driven by bonds, so their profits follow the Federal interest rates. And even if insurance policies are slow to adopt these high interest rates, you can rest assured that the mutual insurance companies will get your money to you. And in the meantime, you’re not losing money. It’s important to remember that the value of whole life insurance is going to unfold over your whole life. In other words, it’s not an asset you buy today and get rich from. It’s an asset you buy today that allows you to have more peace of mind, and make more strategic choices over the course of your life, all while building your cash reserves. Twenty years from now, you’ll be glad you started as soon as possible, and may even wish you started twenty years sooner. The best time to get started was years ago, but the second best time is today. We don’t have time machines to change the past, but by starting the process today, you’re going to get the maximum benefits possible from this point forward. So don’t be afraid to just make the choice. Your future self will thank you.What Nelson Says About Whole LifeInfinite banking is simply a concept or a strategy that you can apply to your usage of whole life insurance, in order to be a more efficient steward of the asset. That being said, Nelson Nash knows what it takes to be a good steward and a good IBC practitioner, so it’s important to look to his guidance when in doubt. One of the most important things Nelson says is to think long-term. If you apply short-term strategies to a long-term product, you are not going to get the results that you desire. Instead, you’ll end up burning through your money and you won’t have it when you really need or want it. That being said, Nelson also says not to be afraid to capitalize, or use, your cash value. It’s there for you to use. The balance is in making decisions based on long-term benefits, like having a repayment strategy in place and/or capitalizing on cash-flowing investments that will create more wealth for your family. Are You Afraid to Capitalize?If you’re going to capitalize on your policy, you’ve got to have capital. You build capital by funding your policy. And while PUAs are a part of that, you don’t want your ratio of base premium to PUAs to be too low. This can often be an excuse for people NOT to fund their policy each month,
Ever wondered how the Infinite Banking Concept (IBC) can protect your family and boost your business? That's exactly what our client, Marcus, shares in this enlightening episode about using IBC for business. Since 2017, Marcus has leveraged the IBC to support his ventures, from real estate and flipping properties to running two unique franchises - HOTWORX and Destination Athlete. Get inspired as he lays bare his journey from the Navy to becoming a successful entrepreneur.https://www.youtube.com/watch?v=gCU8diqIspUWhile we navigate Marcus's intriguing IBC journey, we'll also dive headfirst into the world of franchise ownership. Marcus gives us a front-row seat to the realities of owning two franchises, the challenges he faced, and how IBC has been an invaluable tool in his business arsenal. He shares insights about thinking long-term when using IBC and the significance of Key Performance Indicators (KPIs) in pinpointing growth areas. An intriguing highlight is how he cleverly utilized the death benefit as collateral for an SBA loan!Wrapping up our conversation, we explore the nitty-gritty of insurance policies. Marcus weighs in on the age-old debate between whole life and term policies, stressing the importance of understanding the risks and benefits of each. He also shares his experience with buying additional PUAs and how these steps have maximized his benefits. Listening to this episode will equip you with a wealth of knowledge, not just about the IBC and its potential, but also about the ins and outs of entrepreneurship, business growth, and smart financial planning.Tune in to find out how IBC for business works!Getting Started Using IBC for BusinessMaking Your Own Terms with IBCThe Death Benefit is CriticalWhole Life vs. Term InsuranceOne Multi-Purpose AssetBook A Strategy CallGetting Started Using IBC for BusinessMany roads lead Marcus to where he is today, though most notably, his IBC journey began when he decided to look beyond the insurance offered to him through the Navy. He wanted something more than term, and maybe even something that would be advantageous on his wealth-building journey as a real estate investor as well. He stumbled across IBC and some podcasts on the matter, and began to research what a whole life insurance policy could do for his family. In 2017, he began his first policy and has used it many times since then. So even in the early accumulation phase, his policy has created value for his family. While he hasn’t yet used his policy for long-term rentals, the first two moves he made were fix-and-flips. He’s also used the cash value as collateral for an SBA loan to franchise a HOTWORX, a vehicle for his wife, and even funds for a Destination Athlete franchise, demonstrating the breadth of options cash value can provide. [05:37] “I’ve always paid it back as soon as that equity comes back in. So pay it back, then reuse it again. But if any bit is deployed, I like to pay it back down to zero before I use it for anything else again.” Making Your Own Terms with IBCWhat makes IBC function well, and what Marcus demonstrates so avidly, is being an “honest banker.” In the same vein, you might hear us say, “Don’t steal the peas.” The sentiment behind both phrases is that you’ve got to be responsible with your money. And when you take a policy loan, you want to repay it. This is the best way to replenish your capital and use it again. While you certainly don’t have to, it’s this mindset of good stewardship that prevents problems down the road and ensures that your policy keeps running smoothly. Marcus’ own family uses their cash flow from the assets that they purchase in order to replenish their capital first, then they experience the benefits of that cash flow second. This allows them to accelerate their asset base early on because they’ve got the cash value free to re-invest. [08:33] “That’s one of the things I love: you can make your own terms.
Bruce Wehner discusses the primary components of infinite banking policy design: base premium, paid-up additions riders, and term riders. Following the principles laid out by Nelson Nash in Becoming Your Own Banker, we review the concepts for designing a whole life insurance policy for the Infinite Banking Concept.https://www.youtube.com/watch?v=S54uejv8g-QWhen my father took out a whole life insurance policy on me as a newborn, little did he know that it would be the cornerstone of my financial planning in the future. From leveraging that policy for a home down payment to understanding the value of banking, I've followed the policy design guidelines of the Nelson Nash Institute to navigate the complex world of finance. Join us in our exploration of whole life insurance and the myriad of benefits it offers not just from a security standpoint, but also as a tool for capital growth and liquidity.In this episode, we touch upon the long-term thinking involved in whole life insurance policy design. The focus is on the trade-offs we make, highlighting the potential benefits of reduced liquidity in the early years. We also delve into the nitty-gritty of policy design, discussing why a convertible term policy can be a boon for your financial portfolio. Moreover, we illuminate the often misunderstood relationship between banking and insurance, demonstrating how the former can be a profitable venture to exploit.Lastly, we examine the financial intricacies of policy design, emphasizing the importance of understanding the connection between a policy's base death benefit and premium. We share insights into how dividends are calculated and how factors such as a low-interest-rate environment can impact these projections. Wrapping up, we stress on the importance of affording the premiums and how it affects the potential dividends one can receive. So, tune in, and let's debunk the myths surrounding whole life insurance policy design while learning how to make the most of it.Whole Life Insurance is Not an InvestmentThe 3 Components of Infinite Banking Policy DesignWhat is Base?What are PUAs? Infinite Banking Policy Design and Base/PUA SplitThe Role of Term InsuranceThe Balance of Infinite Banking Policy DesignLiquidity and Thinking Long-TermOther Facets of Infinite Banking Policy DesignBook A Strategy CallWhole Life Insurance is Not an InvestmentWhole life insurance is a unique place to store cash because it’s safe and it grows. This growth, however, cannot be compared to investments because it’s not an investment. Instead, it should be compared to a bank, which is meant to be “safe” growth. This comparison reveals that cash value in a policy grows at a more substantial rate and is also tax-advantaged. Cash value is also fairly liquid, though it takes some time for your cash value to catch up to the contributions you make. In other words, there are some limitations on the liquidity early on. However, this is temporary and is more than worth the trade-off of safe growth—safe from the IRS, creditors, taxation, loss, theft, and death. It’s an iron-clad way to store your cash that you can’t get anywhere else.The 3 Components of Infinite Banking Policy DesignIn order to get the best results from your whole life insurance policy, you want one that is specifically designed for IBC. This means that you want to work with an insurance agent who is familiar with your financial objectives, and can help you choose the ideal policy design. Policy design can be complex, yet the three main components of a policy are base premium, PUA riders, and term riders. What is Base?Base refers to the part of your premium that goes to the main (or base) portion of the death benefit you’re buying. This is the foundation you build the rest of your policy upon, such as PUAs and riders. When you have a high base, you’re buying more death benefit upfront, and paying for it over the course of your premiums.
By popular demand, we will be continuing our conversations from last week on annuity strategies! This time, we are joined by special guest Joseph DeFazio! Joe is a seasoned financial educator and will bring a fresh perspective on lifetime annuity income and how annuities can benefit your financial life! https://www.youtube.com/watch?v=YtZbQx8qVXcIf you're interested in guaranteed lifetime income, then this video is for you! We'll discuss the different types of annuities and explain the basics of lifetime annuity income.Annuities: Risk TransferHow to Structure Your AnnuityWhat is a SPIA? Who Should Consider Annuities?Lifetime Annuity IncomeBook A Strategy CallAnnuities: Risk Transfer[11:10] “An annuity is a private contract that completely transfers the risk of outliving your money to the insurance company in exchange for a premium payment. The insurance company uses bonds and [then] layers on actuarial calculations, actuarial science, that pools the risk so they can guarantee an income stream for as long as your contract specifies.”In other words, an annuity is the inverse of whole life insurance, which transfers the risk of not living long enough to the insurance company (in exchange for a premium). Because insurance companies manage the risk of living too long AND not long enough, they’ve created balance. How to Structure Your AnnuityThere are two phases to an annuity: the accumulation phase and the annuitization phase. During the accumulation phase, you’re funding the annuity, and you can choose either a fixed rate or variable rate, both of which have their pros and cons.In the annuitization phase, one of the choices you must make is whether you want your benefit now or later. If you choose to start receiving your benefit within 13 months, that’s called an immediate annuity. Any time after that is considered a deferred annuity. Then, you choose how you want to receive your benefit. You can get a level payment, and increasing payment, or even a variable payment stream that would be tied to an index. The choice will likely depend on how long you expect to take income, compared to how large your annuity is.And finally, you can choose what types of guarantees you want on that benefit. If you choose to have no guarantees, then the income benefit stops as soon as you pass on. You can also tie an annuity to someone else with a survivorship rider, which would continue to pay the income to a spouse or partner for the remainder of the annuity term. Another way to structure it is placing a guarantee on the term, like 10 years, where it pays to someone for that term no matter what. You can also choose to simply guarantee a return of premium, so if you pass on before you’ve earned back your initial premium, it will pay a beneficiary until that benchmark. What is a SPIA? [15:01] “A person’s idea of an annuity is often tied to a SPIA because this is the description that most people have of an annuity.”SPIA stands for a single premium immediate annuity. In other words, you pay for the annuity in one lump sum and begin receiving an income within the first 13 months. Since it has its own acronym, it’s what many people are familiar with when the topic of annuities comes up. That being said, a SPIA isn’t for everyone. As you can see above, there are many ways to structure an annuity to work for your particular set of needs and goals. While the immediate nature of the SPIA may be beneficial to some, there are some things to consider. One of the major benefits of the SPIA is that you’re going to get a much higher rate of return on this than any other annuity. However, these annuities are designed to be more short-term, and any remainder goes to the life insurance company, not a beneficiary. Generally, the best candidate is someone who is running out of money, is over 85, and wants to create the best possible end-of-life income. It’s certainly not right for everyone,
Are you interested in knowing the truth about generating guaranteed cash flow with annuity strategies? Learn about the benefits and drawbacks of annuities, as well as some annuity strategies that will help you create guaranteed cash flow. Are annuities the unsung heroes of guaranteed retirement income flow, or are they just another intricate financial product that's more trouble than it's worth? https://www.youtube.com/watch?v=gvmideJqIdQJoin us as we crack open the world of annuities. We'll be discussing how these financial tools, often misconstrued as a bad choice, can actually work in your favor to provide a stable income stream during your retirement. Hold on to your hats as we dissect the differences between variable, fixed, and fixed index annuities, revealing the various fees that come with each type. Annuities can be a great way to secure your financial future – but make sure you understand the pros and cons of annuities (fixed annuities, deferred income annuities, single premium immediate annuities, and variable annuities) before signing up. Tune in, whether you're an annuity advocate or skeptic, and let's debunk the myths together. What is an Annuity?Immediate Annuities vs. Deferred AnnuitiesAnnuity Strategies for Guaranteed Cash FlowCons of Annuity StrategiesWhy Buy an Annuity?What is an Annuity?Annuities are a lesser-known insurance product that can provide cash flow in a way that’s guaranteed. These are typically intended for income later in life. To buy an annuity, you can pay a lump sum or in monthly premiums. That sum then earns interest and distributes an amount of monthly or annual income either for a specific term or for the rest of your life. This is why it’s generally a product for retirees. In other words, you can give the insurance company money, which is guaranteed to grow as outlined in the contract. After that accumulation phase, the company then distributes your account as income to you over your specified time period. This can be beneficial in a volatile market when you don’t want to lose money in your portfolio. Immediate Annuities vs. Deferred AnnuitiesWhen you purchase an annuity, you an either choose to receive income immediately, or you can defer that income to a later time. If you’re 75 and want an income stream now, you might choose an immediate annuity. However, a deferred annuity might be beneficial if you come into a windfall and don’t yet need an income. You can then specify at hat age you’d like to start receiving payouts.If you choose to go with a deferred annuity, the insurance company may incentivize you to keep your account with them by offering step-up credits. If your annuity is tied to an index and doesn’t increase that year, you may get a step-up credit if you don’t take any income that year. This is meant to encourage you to keep your annuity in place, rather than liquidating it and taking it elsewhere. Annuity Strategies for Guaranteed Cash Flow[05:16] “Not only [can] having annuities enhance your equity portfolio, your investment portfolio, but it can also enhance the happiness of how a person spends their retirement.” The advantage of an annuity is that you can sleep at night, knowing that you have a guaranteed income in retirement. There are, of course, many types of annuities with their own advantages and disadvantages. If you do choose to purchase an annuity, it’s important to have a grasp on what’s available that fits with your existing portfolio and income needs. Below are just a few examples of annuities.Fixed AnnuitiesThe first type of annuity is a fixed annuity, which means it has a fixed interest rate upon purchase. It lasts for a designated time period, but it can be renewed. For example, if you buy a fixed annuity for $100,000 at a rate of 5.4%, you’re guaranteed to earn that rate for the stated period of time in your contract. This does compound,
Is it possible that you have areas of inefficiency in your business or cash flow that could be better used to fund IBC? It's time to discover some of the top inefficiencies in your business where you can recover excess money flowing out of your control.
https://www.youtube.com/watch?v=58Ol_6iTLbc
Many people have money paying for expenses that could instead build capital reserves, a warehouse of wealth, solvency and stability, access to cash, and even the funding for a buy-out or to weather an uncertain economic future ... and also still be used for the same expense.
In other words, you can be more efficient with your money if you think differently.
Discover the secrets to finding and freeing up money in your life and business to fund infinite banking premiums in today's insightful episode. We're sharing concrete examples, strategies, and tips that will help you save money, optimize your loans, and maximize the benefits of the Infinite Banking Concept. It's time to unlock your financial potential and run your life like a successful business!
The Basics to Fund IBCHow Do You Find Money in Your Business?Structuring Loans for Increased CapitalWhat Should You Finance with a Policy?For Further Reading:Book A Strategy Call
The Basics to Fund IBC
If you’re a business owner and investor, you may have several streams of revenue and questions on how to use them. In this case, is there an ideal way to fund IBC policies? And how can you creatively manage your cash flows for maximum efficiency? These are important questions to be asking as you work to build your pool of capital and use it, too.
Foremost, building capital takes capital. In this case, your capital is your premiums and PUAs. When you pay them, you’re contributing directly to your cash value. If you don’t have the cash flow to fund your policy without taking on debt, you’re not in a position to start a policy.
For example, if you wanted to use business assets to pay premiums, then use the cash value to pay back those assets, you’re actually doing things backward. What will happen is that you have to take a policy loan, so you’ll just be creating more and more debt that can get out of control, and adding interest on top. If you want to leverage your cash value, you want to leverage it for new assets that bring in cash value, not old assets. Otherwise, you’re just taking from yourself and reducing your reserves.
How Do You Find Money in Your Business?
But what if you do have assets in your business that you can use and won’t require you to replenish those assets? That way, you can still use those first years as a growth phase, which will give you a stronger capitalization phase later on.
One way to find money in your business is to save money on taxes. You can do this, depending on the advice of your CPA, by choosing to have an S-Corp instead of an LLC, for example. This may help you to reduce your taxes, thereby giving you some extra capital to funnel into a policy. Of course, there are other tax reduction strategies that you can look into with your CPA with similar results.
[17:00] “You do need to pay the IRS what’s fair and square, but you don’t need to tip them. You don’t need to pay what’s more than necessary. So it’s about being strategic—it’s not finding loopholes, it’s using the tax code.”
Another way to find money is to reduce expenses elsewhere. Many of your bills are likely negotiable, and it doesn’t hurt to try. If you have a brick-and-mortar business, many of your overhead expenses can likely be negotiated. In addition, you can raise your insurance deductibles to lower your monthly cost. You can then use the difference to accelerate your IBC savings. If an accident does occur, you’ve got capital in reserves.
You can also increase your cash flow in ways that don’t have a significant cash investment, so you can use all additional cash flow for your life insurance policy.
If you want to adopt a new financial mindset, you need new financial habits. As Nelson would say, "use it or lose it." Today, we're continuing the journey through Nelson Nash's catalytic book, "Becoming Your Own Banker," and discussing the role of habit, the power of habit, and what financial habits you need to implement if you want to gain the full advantage of the Infinite Banking Concept.
https://www.youtube.com/watch?v=8DLuniN2TjQ
Join this conversation to find out how to make Infinite Banking more automatic, and how to best manage your Infinite Banking system for maximum financial control.
Use It Or Lose ItSimplify Your Decision-Making ProcessIBC is a Personal Monetary SystemThe Power of CapitalizationBook A Strategy Call
Use It Or Lose It
“Use it or lose it” is a principle that applies to many things, including finance. For example, if you have vacation time, typically you’re required to use it within a specific timeframe or you lose it. If you learn a new skill, you’ve got to keep practicing it or you’ll regress. And as many people come to find out as they age, if you stop using your brain and your body, you start to lose some functionality, too. This is a part of the human condition, and to be aware of it and overcome it is imperative.
This applies to the infinite banking process because IBC isn’t a “set and forget” strategy. You’ve always got to be thinking about how your money is flowing, so much so that it’s a habit… NOT a background player. You’ve got to use your knowledge and skills to achieve the outcomes you want, or you’ll lose the control that IBC affords you.
On the flip side, your money is not affected by this human condition. You don’t have to “use or lose” your money. This is why many families struggle to save—because they’re always spending. IBC gives you capital and solves your need for financing through your carefully cultivated habits. However, that does not mean you need to finance every deal that comes your way. Having cash allows you to wait for the right deals to come your way, and the habits you create free up your mental energy to recognize those deals.
Simplify Your Decision-Making Process
One of the benefits of making habits (rather than automation), is that you get to simplify your decision-making process and conserve your mental energy. A great example of this is being a vegan or having some other dietary restriction. It usually comes from a place of principle, and it removes heavy lifting from your choices. When you’re a vegan, you know you’re not going to eat beef or drink milk–it’s a habit and lifestyle. It doesn’t matter who’s watching you or where you are, or even how you’re feeling that day.
There aren’t always equivalents to this in other areas of life. However, IBC can be the foundation of your financial principles so that your choices become a habit. With IBC, saving money becomes a habit. Then, with the mental energy you conserve by adopting this habit, you can spend a bit more energy and thought determining how to use your capital to your best advantage based on IBC principles.
[18:09] “Your habits ultimately determine the direction of your life, and they free you up to be able to have mental energy in other areas.”
IBC is a Personal Monetary System
What we’re getting at, ultimately, is that the Infinite Banking Concept is not simply a product. It’s not just life insurance. It’s a personal monetary system that will completely change the way you think about and use your money for the rest of your life—and hopefully for your future generations, too.
IBC gives you capital, which gives you control. And just like you want to use your knowledge and skills so you don’t lose them, remember, you also want to hold your money for the right moment. The habits you create—saving money instead of spending—give you the cognitive space to ask the important questions.
[34:45] “If you want a new idea to work for you,
Dividends are a crucial part of why whole life insurance is such an ideal asset for conducting an Infinite Banking Concept (IBC) strategy. But because dividends are not guaranteed is the life insurance contract, it raises the question: can we rely on life insurance dividends in a bad economy? Join us as we explore the inner workings of life insurance dividends, how it relates to the current economy, and why we don't think you have to be afraid.
https://www.youtube.com/watch?v=6ONu2ZroHeQ
Tune in as Bruce explores the factors at play, and find out how to navigate uncertainty while maximizing returns.
How Are Life Insurance Dividends Calculated?Understanding the Dividend RateThe Dividend is Chasing the Death BenefitAre Life Insurance Dividends a Return of Premium?The Relationship Between the Treasury and Life Insurance DividendsCan You Still Get Life Insurance Dividends in a Bad Economy?Book A Strategy Call
How Are Life Insurance Dividends Calculated?
While all mutual companies calculate their dividends in different ways, and the calculations are proprietary, the components of those calculations are all the same. Essentially, life insurance companies have income and expenses.
Expenses for a life insurance company include payroll, death claims (the most significant expense), and other overhead costs.
The income is all based on products sold. The companies then invest that income. Mutual companies have a reputation for investing very conservatively, as well as having significant liquid reserves. A significant portion of the investments are made up of bonds and real estate. Insurance companies also make a profit on policy loans to their policyholders.
When there is a profit, those profits are then distributed to policyholders. The insurance companies typically declare the rate for the coming year in December, based on all this information: expenses, profits, etc.
Understanding the Dividend Rate
Here’s where things can get confusing. Just because a company declares a 5% dividend rate does not mean that each and every policyholder is getting a 5% increase in their cash value. The dividend rate is a gross number and is actually applied differently across policies.
Factors that may contribute to your actual dividend include:
Any fees from your policy
Policy costs and expenses
Existing policy loans
Age of your policy
In some cases, policies may even earn more than the declared dividend. There are many factors that contribute to this because the “goal” of every policy is endowment, which causes the dividend to “chase” the death benefit.
The Dividend is Chasing the Death Benefit
[9:10] “The dividend is actually chasing the death benefit, and the cash value is always chasing the death benefit. What do we mean by chasing? Whenever you take out a policy, let’s say you put $50,000 in the first year… it’s going toward the base policy. And the base policy is the foundation or the rock of the policy. It’s the true insurance portion of the policy. Some of it goes to a term rider, and the term rider is there so we do not MEC the policy. And the last part is the paid-up additions rider. And those three cause a relatively high death benefit versus the $50,000.”
The policy is set to endow at age 121. This is the point when the cash value is equal to the death benefit, and you will receive the full death benefit if you’re still living. Over the course of your lifetime, you’re watching your cash value chase this endowment. Meanwhile, the death benefit is also increasing because of PUAs.
What this means is that your cash value and the death benefit of your policy are going to grow differently. Your policy has to have the growth momentum to actually reach this endowment. A 5-year-old has 116 years to accumulate enough money to reach endowment, while a 50-year-old only has 71 years. They might even get more than the declared dividend in order for the policy to keep up.
Are you ready to transform your financial growth mindset? In today's enlightening episode, we dive deep into Nelson Nash's book, Becoming Your Own Banker, and explore the concept of the arrival syndrome - a dangerous belief that we've reached the pinnacle of knowledge and understanding. We'll discuss the fixed mindset versus the growth mindset, and how these mindsets play a crucial role in the world of Infinite Banking.
https://www.youtube.com/watch?v=h1TuPm4voX0
Hear our recommendations on defeating the Arrival Syndrome, embracing continuous learning, and making the most of our services at The Money Advantage to create a tailored financial plan. This episode will challenge your beliefs and reveal new strategies to keep and control more of your hard-earned money. Don't miss out!
The Arrival SyndromeCarol Dweck and the Fixed MindsetArrival Syndrome and IBCBook A Strategy Call
The Arrival Syndrome
Arrival Syndrome, which Nelson Nash discusses in his book, Becoming Your Own Banker, is detrimental to wealth building.
[7:15] “If we think we’ve arrived, if we think we know everything, then we have this arrival syndrome, which is the illusion of knowledge that shortcuts us and makes us stop growing.”
If you believe you have arrived—at success, at financial freedom, at peace—you give yourself permission to stop trying. Doing so prevents any future growth, and that’s a dangerous place to be. For example, people who experience large windfalls often see a large sum and believe that they’ve made it. They think they’ll be set for life because it’s the most money they’ve ever seen. So they stop working and squander money, only to realize that money was finite after all.
You can also think of it this way—what if Steve Jobs had stopped at the Macintosh? What if Henry Ford stopped after building his first gasoline engine? These were valuable inventions, and neither of them could guess just how far their work would go, and yet they kept inventing and growing. Their growth mindsets and curiosity allowed them to keep pushing the envelope, keep inventing, and do the unthinkable.
[7:55] “Arrival syndrome is equal to arrogance, and arrogant people breed ignorance. Ignorance is about not even knowing something. It’s not that you can’t know it, [it’s that you haven’t been exposed to it].”
Carol Dweck and the Fixed Mindset
A similar idea comes from Carol Dweck, author of “Mindset: The New Psychology of Success.” Rather than arrival syndrome, she talks about having a “fixed mindset.” Those with a fixed mindset believe that intelligence is static, desire to look smart, and may even avoid things that seem challenging. By having a fixed mindset, you’re destined to plateau and have your worldview confirmed.
If you look at the world through a fixed mindset, you’re experiencing arrival syndrome. You don’t feel like you have anything left to learn or do; you don’t have to exert yourself or expend effort, and you’re locked in. While you may be perfectly fine in this state, you'll never strive for anything greater. The possible becomes impossible because there is no room or desire for growth.
[12:55] “Whereas a growth mindset recognizes that we all have the capacity to continue growing. There’s always more growth potential beyond what we already know, and we have to be humble… in order to have a growth mindset.”
If you can switch your thinking around, the impossible becomes possible with effort, intention, and practice. There's no guarantee that things will be easy, however, you create new possibilities for yourself and your family every day. Making more money is possible, getting out of a bad spot is possible, generational wealth is possible—and an infinite number of things you can't even imagine yet. IBC is a part of this world of possibility because it requires a growth mindset to unlock its true value.
Arrival Syndrome and IBC
The common pitfall we see is when someone discovers IBC there's a cha...
You've decided that you want an Infinite Banking (IBC) policy. You've done the research, and you want a better place to store cash that has the benefits of safety, liquidity, and growth on cash storage.
https://www.youtube.com/watch?v=1qJ8xIj5W4A
What's next? What should you expect as you go through the purchase process?
In this episode, we take a deep dive into the Infinite Banking Concept (IBC) and explore the intricacies of illustrations, underwriting, and loans. Join us as we navigate the complexities of IBC and help you make informed decisions about your financial future.
Insurance is a ContractDirect Recognition vs. Non-Direct Recognition Life InsuranceYour Finances Impact Your ChoicesThe IBC Underwriting ProcessPossible Insurance Rating ClassesAccelerated UnderwritingIBC Death BenefitBook A Strategy Call
Insurance is a Contract
[4:28] “Contracts are the backbone of any society.”
Nelson Nash said this and furthermore believed that if contracts were breached, that would mean the collapse of society. This is why you can rely on your whole life insurance policy–anything that is in your contract and part of your policy design will remain true for the entire length of your policy.
Even as tax law changes and the IRS modifies what’s possible with a life insurance contract, this only affects future contracts. For example, in 1988 the IRS introduced something called a MEC limit. MEC stands for a modified endowment contract and is what a life insurance policy becomes if it’s over-funded. When you have a MEC, your policy loses all tax advantages.
This happened because people were putting so much money into their insurance and accessing that money tax-free, and the IRS wanted a slice of the action. However, thanks to contract law, MEC limits (the maximum premium you can contribute without turning your policy into a MEC) only applied to new policies. To this day, Bruce has policies from the 80s that were never subject to MEC limits.
This is an incentive to start a policy as soon as possible. You don’t know what the future holds, or how the IRS might modify the rules. You do know that you have a need for capital and a need for insurance. By locking it in today, you have more time to build capital, and you lock in all the current benefits of a life insurance contract. Those benefits cannot and will not be changed once the contract is signed.
Direct Recognition vs. Non-Direct Recognition Life Insurance
If you’re ready to buy a policy, it’s worth considering whether you want to work with a direct recognition or non-direct recognition company. This determines how dividends are applied to your cash value when you have an outstanding loan.
Direct recognition companies “directly recognize” when you have an outstanding loan, and apply the dividend differently to any cash value with a lien on it. Non-direct recognition companies apply the dividend equally across your cash value, even if you have a lien on some of it. While this may make non-direct recognition seem better, there are no deals in the life insurance industry.
In other words, everything is a trade-off. Direct recognition doesn’t automatically mean that cash value with a lien on it will earn less. It really means that it will be applied proportionately to the loan interest rate. And if the interest rate is much higher than the declared dividend, that portion of your cash value may actually earn a bit more. But if you intend to use your cash value often, non-direct recognition may be your best bet.
The important takeaway here is that one is not leagues better than the other. After all, interest rates and dividends are unpredictable. Companies will ebb and flow. So don’t get too hung up on the little things, especially if it holds you back from making a choice. Go with your instinct, and don’t sweat the decision too much. You can always have multiple policies with different constructions.
Do you want to be in control, have excellent opportunities, and automatically gain the upper hand in negotiations? In part 9 of the "Becoming Your Own Banker" series, we discuss the path to financial freedom and control with this truism we call The Golden Rule: "Those who have the Gold make the rules."
https://www.youtube.com/watch?v=TTvP69_9wVI
In today's episode, we'll discuss the benefits of capitalism, the lost art of saving, the proper role of the Constitution, Ayn Rand, Shakespeare, personal responsibility, the requirement of an alert, informed, and jealous citizenry... and how it all ties back to the Infinite Banking Concept. Don't miss this episode as we continue on our journey through Nelson Nash's incredible book, "Becoming Your Own Banker."
Ethical Capitalism and the Golden RuleWhy You Want to Be in ControlBeing in a Position of Capital with Infinite BankingThe Benefits of Non-Liquid InvestmentsResponsibility in a Capitalistic SocietyBook a Strategy Call
Ethical Capitalism and the Golden Rule
Social media is rife with people who live for today, who make promises to help people get rich quickly. Ultimately, these are people who get rich on promises rather than service, while the people they’re supposed to help do not. This is shortsighted and unfortunate, and is not exemplary of ethical capitalism. Unfortunately, this is what the “Golden Rule” has turned into.
You’ve probably grown up hearing about the biblical Golden Rule: “Do unto others as you would have them do unto you.” In Becoming Your Own Banker, Nelson says that financially, the Golden Rule is that “those who have the gold make the rules.”
While this can be easily twisted, like with the hundreds of social media entrepreneurs, it can also unlock a path of personal wealth for you and others. When implemented from the standpoint of ethical capitalism, this Golden Rule is actually our greatest gift.
Why You Want to Be in Control
[15:00] “Those who are in control, who have capital, are in power. They make the rules that benefit themselves best and make the rules that everyone else follows. We don’t have to be suckered into following these rules. It’s just a natural thing that happens. And the reason that it happens is because when you have control of the capital, everyone else needs that capital.”
The remedy to this is to appreciate the value of future thinking and to seek your own capital. So many of us are “living for today,” in Nelson’s words, and not thinking about what it takes in the long term to be successful. And so we give up control of capital to banks and other institutions. When you remove your capital from these systems, you take back your control, and therefore your own power. This is the long term value of saving money.
[16:19] “We don’t appreciate, in our culture, having capital. We don’t appreciate the act of saving and setting capital aside so that we have access to that capital. And because we have absolved that responsibility of controlling capital, who controls it? Somebody besides us.”
Being in a Position of Capital with Infinite Banking
If you don’t want to have people control you, you must use the golden rule to take control. If you don’t want the banks to control you, then get your money out of the banks and into a whole life insurance policy.
By doing this, you can accumulate money that benefits you and not the banks, which profit from leveraging your money. After all, banks are notorious for using customer deposits to make loans and investments, then paying a sliver of that back in interest.
Whole life insurance with a mutual company allows you to grow your wealth at a more favorable earnings rate, while also providing the ability for you to leverage your own money to make investments. You get to have complete control over when and why you use the money, and the banks have no reach or power over your personal capital.
The Benefits of Non-Liquid Investments
In this episode of the Money Advantage podcast, we explore how to avoid the pitfalls of leaving an inheritance and ensure you leave a positive impact on future generations through intentional wealth management and legacy planning.
https://www.youtube.com/watch?v=ZXFUVVoT_6s
Inheritance, a transfer of wealth from one generation to another, can be a double-edged sword. On one hand, it can provide financial security and opportunities for the next generation. On the other hand, if mishandled, it can lead to family conflicts, spoiled children, and the squandering of hard-earned fortune. We explore the insights of Dr. Lee Hausner, a renowned consultant to high-net-worth families, family businesses, and family offices, on how to avoid the pitfalls of leaving an inheritance and ensuring a positive impact on future generations. We delve into the importance of understanding the power of money, the various types of wealth present in society, and the significance of instilling the right values in the next generation of wealth holders.
Avoiding the Pitfalls of Leaving an InheritanceWealth Transfer and Legacy PlanningStrategic Planning for Family LegacyCreating Successful and Prosperous FamiliesSibling Competition and Social CompetencyAbout Dr. Lee HausnerBook a Strategy Call
Avoiding the Pitfalls of Leaving an Inheritance
Dr. Lee Hausner's background as a psychologist in the Beverly Hills school district exposed her to the effects of different types of wealth on families. She observed first-generation entrepreneurial wealth, trust fund wealth, and industry wealth, each with its unique set of challenges and expectations. This experience, coupled with her expertise as a consultant to high-net-worth families, has given her valuable insight into the potential pitfalls of leaving an inheritance.
One of the key challenges in wealth transfer is finding the right balance between providing financial security and ensuring that the next generation does not become complacent or entitled. Overindulgence and a lack of understanding of the value of money can lead to destructive behaviors and a squandering of family wealth. Dr. Hausner emphasizes the importance of raising children who are competent and self-confident, regardless of their financial situation. This foundation will help them navigate the complexities of wealth management and inheritance, ultimately leading to more successful and prosperous families.
Wealth Transfer and Legacy Planning
A successful wealth transfer and legacy plan requires intentional and strategic planning. Dr. Hausner suggests that families think of themselves as a business, applying the same strategic planning techniques to their family life as they would to their professional endeavors. This includes setting goals and strategies, holding family meetings, and fostering a culture of open communication and collaboration.
In addition to teaching children about the fundamentals of money management, it is crucial to instill the right values and work ethic in them. This can be achieved through a combination of education, experience, and mentorship. Dr. Hausner also highlights the importance of being strategic about when and how much to pass on to the next generation. A well-planned wealth transfer will take into consideration the needs and abilities of each family member, ensuring that the resources are used productively and effectively.
Strategic Planning for Family Legacy
Creating a successful family legacy requires a clear vision and a strategic approach to wealth management. Dr. Hausner recommends reverse-engineering the desired family outcome and breaking it down into achievable goals and milestones. This process should involve open and collaborative discussions among family members, ensuring that everyone's needs and aspirations are considered.
One of the perennial concerns in wealth distribution is the issue of equality. Dr. Hausner suggests that families should focus on giving...
In part 8 of the "Becoming Your Own Banker" series, we dive deep into how to save taxes by implementing the Infinite Banking Concept in your financial life.
https://www.youtube.com/watch?v=SNusw15mzyM
During our discussion, we dig into the concepts of legal plunder, taxation, and the triple tax advantage of whole life insurance. We also share an enlightening live Q&A session on financial concerns, emphasizing the importance of asking questions and modeling successful behaviors. Nelson Nash was a master at getting people to think and develop a growth mindset; we invite you to join us as we unpack his wisdom and learn together.
Don't miss this episode, as we share valuable insights on money, human nature, and the world around us, inspired by Nelson Nash's incredible book, Becoming Your Own Banker.
Join us as we show you how you can use dividend-paying whole life insurance to keep more of your money working for you and continue the conversation about the Infinite Banking Concept through Nelson Nash's book, "Becoming Your Own Banker," today!
Parkinson’s LawWillie Sutton’s LawTax Confusion and ManipulationHow to Save Taxes?Whole Life Insurance is Tax-AdvantagedBook A Strategy Call
Parkinson’s Law
Parkinson’s Law, which Nelson mentions in his book, suggests that it’s in our human nature to spend everything we make. It’s something that every single person struggles with—even our team. And it takes a daily, conscious effort not to spend.
But one of the great benefits of IBC is that you have a place to store your savings that feels like a bill–your premiums. This mechanic alone can help you to overcome Parkinson’s law and save more money, though you’ll still have to work on it in your daily life.
Willie Sutton’s Law
In Nelson’s book, Becoming Your Own Banker, he also mentions Willie Sutton’s Law. This is the law that whenever you have capital, someone is going to want to steal it. This could be a person in your life, but it also pertains to institutions: the IRS, creditors, fees, and much more.
There’s an Aesop fable that describes this beautifully. A colony of ants worked hard all summer to build up their food stores, while the grasshopper scoffed at any hard work. But when winter rolled around, the ants were happy, and the grasshopper was not—he didn’t have anything to eat. So he sought to steal from the ants.
The government isn’t labor-producing, and so they steal from working people by way of taxation. This may be controversial, but Nelson even says that the biggest thief in the world is the IRS.
[20:43] “If the law takes from some people what belongs to them and gives it to other people to whom it doesn’t belong, the definition of that is theft or legal plunder.”
Tax Confusion and Manipulation
Over the years, plans and products have popped up as a proposed solution to taxation. A 401k and Roth IRA are examples of this. The problem is that the government is responsible for that taxation in the first place. And it seems to be that they’re setting things up so that they always benefit.
[30:20] “If you have a problem of government taxation, and the government is creating the solution to the problem that we have, how can we trust that the… entity that is creating the problem is also creating a solution that really is in our best interest?”
The answer is, you can’t fully trust the solution provided by the government, because they created the problem. And in the end, you still pay taxes when you opt into a qualified plan. The question just becomes when, and qualified plans ensure that you just pay them later.
How to Save Taxes?
So if taxation is inevitable in some ways, how do you come out on top? The solution is to take control whenever possible. And one way to do that is to stop storing your cash in banks and government-run products. Infinite Banking helps you preserve as much wealth as possible.
[32:13] “This whole idea of Infinite Banking is a powerful solut...
Are you shopping for an Infinite Banking policy, but want to first make sure you have the correct policy design with the right life insurance company and a team you can trust? In this episode, we dive deep into the Infinite Banking concept and discuss the importance of choosing the right mutual insurance company and working with a like-minded advisor or agent team.
https://www.youtube.com/watch?v=aUwFuc7NCec
Join us as we share our insights and experiences to help you better understand and implement this powerful financial strategy in your own life. If you want to say goodbye to second-guessing and regret, and make Infinite Banking decisions with certainty and confidence, tune in today!
Building Confidence Through EducationHow to Choose the Best Insurance Company1. Choose a Mutual Company2. Look at Financial Ratings3. Do They Have a History of Dividends?4. Customer ServiceHow to Choose the Best Producer/TeamThe Five Tenets of IBCHow Does Your Advisor Support You? How to Buy the Best Infinite Banking Policy1. Choose Whole Life Insurance2. Paid-Up Additions3. Apply Dividends to Cash ValueBook A Strategy Call
Building Confidence Through Education
Finances can be a tough space to navigate because money is deeply personal, and everyone has different opinions. That’s why we value providing education–because we want to give people the tools they need to build confidence and make their own decisions about money.
Confidence allows you to take action and build trust, and create a positive cycle. You learn more, become more confident, take more action, and build more trust. This simple, small shift allows you to be at the helm of your financial choices, rather than shifting responsibility off your plate completely.
How to Choose the Best Insurance Company
If you’re interested in Infinite Banking, based on our material or something you’ve heard elsewhere, you may have questions on how to do it “right.” While this can vary depending on your personal money goals, there are some general rules of thumb to follow when you buy a life insurance policy for IBC purposes. Let’s go over them together.
- Choose a Mutual Company
A mutual company means that the insurance company is owned by the policyholders. In order to benefit from dividends, this is the type of company you want to work with. As a partial owner, you get to participate in all profits. While not guaranteed, mutual companies tend to run a tight ship and make very conservative long-term decisions. You can expect them to profit.
The other option is to choose a stock company, which is beholden to shareholders. These shareholders may not even have a policy with the insurance company. This can drive stock companies to make riskier, short-term decisions that aren’t always in the best interest of policyholders. You also don’t get those dividends if they do turn out okay.
- Look at Financial Ratings
In addition to being a mutual company, you also want to work with a company that has a solid financial history. A good track record suggests that they know how to manage risks long-term, and can continue to do so for 30+ more years.
You can check a company’s financial rating in any of the major rating services: Standard & Poor, AM Best, Fitch, and Moody’s. A company with at least a 90% rating is a good company to work with.
- Do They Have a History of Dividends?
Another benchmark of a good mutual insurance company to work with is its history of paying dividends. This indicates that they have good long-term vision, and are capable of turning a profit even in dire economic landscapes. Many mutual companies have paid dividends every year for the last hundred years, which means they turned a profit during major wars, recessions, depressions, and the housing crisis.
This is a great indication of good stewardship and consideration for policyholders. So be sure to choose a company that has a solid record of profit.
Even if you make lots of money, there's a central flaw in human nature that prevents most people from handling, managing, and keeping it. If you conquer that, there are forces against you. In part 6 of the "Becoming Your Own Banker" series, we'll deep dive into the inner conflict of Parkinson's Law, and the outer battle of taxation ... and show you how to conquer both.
https://www.youtube.com/watch?v=v1HtuqTI-vA
Join us as we continue the conversation about whole life insurance and the Infinite Banking Concept through Nelson Nash's book, "Becoming Your Own Banker," today!
[power press]
Re-Think Your ThinkingWhat is Parkinson’s Law? Why Your Income Doesn’t MatterHow Does Parkinson’s Law Affect Infinite Banking?Book A Strategy Call
Re-Think Your Thinking
When you think you know it all, you close yourself off to learning. This can be a dangerous path, because there’s a wealth of knowledge in the world, and you might miss out on major, powerful changes.
This is especially applicable to the financial advice you see and hear out in the world. Don’t take it at face value. It’s important to take responsibility for your thoughts and question everything. Examine it, educate yourself, and get to the truth. This is how you find what works, and make progress.
[6:00] “I think if [people are] really trying to be successful with their families and whatever that means to them… you really need to start by looking inside yourself and taking personal responsibility.”
No one is going to take responsibility for you. It’s up to you to decide how you’re going to process and apply the information you hear, including separating facts from fiction. Your knowledge and your mindset are your human capital, and it’s how you apply that capital to your actions that drives success.
[7:57] “When anything is seen as not as measurable, not as concrete, not as data-driven, not as analytical, not as rational… not as objective, it seems like it can’t be as important. But the truth is [that] what’s inside of us is really what drives our success or lack of success.”
What is Parkinson’s Law?
[16:38] “Parkinson’s Law, at its core, states that work expands to meet the time envelope allowed.”
In other words, whatever time you have available, you will naturally fill with work. So if you give someone a 3-day deadline or a 30-day deadline, that person will use the full time to accomplish that objective. Humans can be more efficient or more innovative because they’ll either expand or shrink the scope of a project based on the time allotted.
What Nelson did is recognize how this law applies to money. When we have money, our expenses rise to meet that. So the more you earn, the more you spend. If you’ve ever gotten a raise and felt like it disappeared, you can thank Parkinson’s law. It’s human to want to spend money.
Yet, we cannot keep chasing higher incomes in order to buy more things. It’s impossible to get ahead that way, because of Parkinson’s law–you will always find ways to consume if you have that mindset. If you really want to get ahead, you must learn to delay gratification and resist the temptation to spend everything you have. You must live below your means.
Why Your Income Doesn’t Matter
The thing about Parkinson’s Law is that we are all capable of succumbing to it, regardless of income. Whether you make $20,000 or $200,000, or even beyond that. If you think you can out-earn Parkinson’s Law, then you’ve already adopted that mindset.
The problem is that when you believe you can just earn more money to make our spending issues disappear, that mindset sticks with you. So if you get a $50,000 raise, your benchmark just changes. Suddenly you find yourself with an extra car payment or a new subscription. It’s human to want to spend, but you've got to overcome that to get ahead.
As Nelson would often say, a luxury once enjoyed feels like a necessity. It’s hard to give up luxuries once you experience th...
What do the 25,000 self-made $100M families in the US have in common? Discover the secrets to skyrocketing your career and achieving wealth and happiness with our special guest Emmy Sobieski, a CFA, Amazon #1 bestselling author of $100M Careers, and an expert in investing and entrepreneurship.
https://www.youtube.com/live/5nmGpa0LKk8
Emmy's journey from humble beginnings recycling aluminum cans to running the top fund in the world is a testament to the power of embracing a growth mindset and celebrating milestones along the way. Transitioning from a corporate job to a startup isn't an easy feat, and Emmy shares her insights on how to navigate this change with strategy and balance.
We also delve into the world of investing, as Emmy recounts her rapid success and the importance of staying humble in the face of market volatility.
Join us as we explore the concept of positive serendipity and how to create a growth and open mindset to invite opportunities your way. We discuss the importance of taking big risks early in your career and how to "moonshot" your career and life. So if you want to learn the best path to $100M, the biggest mistakes, how long it takes to get to $100M, and how to be happy and wealthy... tune in today!
What’s the Secret to Wealth?Emmy Sobieski’s Path to WealthPivoting from Investor to MentorThe 3 Cs of EntrepreneurshipThe Biggest Career MistakesConnect with Emmy SobieskiAbout Emmy SobieskiBook A Strategy Call
What’s the Secret to Wealth?
Most people would love a secret solution to wealth and abundance. If there was just one thing you could do that made it so simple. However, life rarely works that way. There’s no get-rich-quick scheme. There is, however, a secret. It’s probably not what you’d expect, and it’s that creating the best version of yourself is how you build wealth.
You are your own secret weapon. By investing in your own skills, knowledge, health, and more, you can create wealth for your family for generations. This requires constant growth because you’ll never know everything. When you recognize this fact and commit to lifelong learning, your life can bloom in many ways.
[4:16] “I talk about it often, where I say you’ve got to moonshot your career. Too many people underestimate their own potential, myself included.”
By committing to yourself and the continued progress of your career, you can maintain and even build energy for what you do. Once you deplete your energy and excitement for something, it’s incredibly difficult to find that energy again. Emmy shares that she sees people take years or decades to get out of this low-energy funk. So you’ve got to follow your energy and nurture it wherever it takes you. Don’t make the mistake of thinking that once you “arrive” at your goal, there’s nothing left for you.
Emmy Sobieski’s Path to Wealth
For Emmy, there was no decision about her career trajectory–things seemed to fall into place naturally. When she was a teenager, she collected aluminum soda cans to recycle them for money. By 16, she had saved up $1,800, and her dad helped her to open her first investment account.
Her dad gave her four companies to choose from, so Emmy chose to invest in United Artists, which was a movie theatre that sold more than just popcorn. This decision helped her to quadruple her money. So her dad gave her four more companies to choose from, and Emmy put her money into a company owned by her dad’s friend. This quadrupled her money again. Emmy’s investments were so successful that she ended up with half a million dollars in her 20s.
In her mid-20s, she lost this money and had to build it back up from scratch. Fortunately, she was successful in that endeavor, too. In 6 months she went from -$30k to $90k, while in grad school. Her friend suggested that people would pay her for that, and in 5 years, Emmy was running the number-one fund in the world.
Pivoting from Investor to Mentor
There are 25,
In this episode, we dive deep into Nelson Nash's book Becoming Your Own Banker, and the power of whole life insurance dividends. Many people are unaware of how they contribute to the growth of cash value and overall efficiency. We also explore the importance of thinking long-term when it comes to Infinite Banking and building a legacy through whole life insurance policies. By understanding the mechanics of whole life insurance dividends and focusing on long-term growth, we can create a powerful financial tool to pass on to future generations.
https://www.youtube.com/watch?v=nKfnZU7mkSg
This process may take time, but it is essential to build a solid financial foundation and leaving a lasting legacy. Join us as we uncover the secrets of the infinite banking concept and how it can help you take control of your finances and create lasting effects on your life.
The Benefits of Infinite BankingThe Power of Whole Life Insurance DividendsOver-Engineering Life Insurance PoliciesAre You Getting Overcharged?Is Life Insurance Safe? Book A Strategy Call
The Benefits of Infinite Banking
People have a need for financing over their lifetime. Access to capital can help you partake in opportunities, grow your wealth, and also enjoy your wealth. Life insurance can also help you protect your family from unexpected death. Infinite Banking combines these two needs into an asset that is ultra-efficient and fulfills both.
When you pay premiums, you are contributing to an ever-increasing (and never-decreasing) supply of money. This is money that you can use whenever you want to, for whatever you want to. So you can be confident that the money you pay each month or year is doing something meaningful, in more ways than one. You’re not throwing money into the void.
The powerful thing about Infinite Banking is that you are in control of your capital. Many people believe that if they really need money, they can simply go to a bank. However, it can be incredibly difficult to secure financing from the bank, unless you can prove yourself or provide collateral. It’s not a reliable system, because the bank can easily deny you funds. By creating your own pool of capital, you can ensure that you always have money available to you when you need or want it.
The Power of Whole Life Insurance Dividends
When you have whole life insurance, your policy is always growing. This growth is a combination of three things: your premiums, guaranteed interest, and non-guaranteed dividends. These dividends may be non-guaranteed, however, they’re more likely than not. When you work with a mutual company, you get to partake in all company profits via dividends. Since they can’t guarantee profit, they can’t guarantee dividends, however, most major mutual companies have been profitable for over a hundred years.
Because you can count on these things, your policy becomes more efficient over time. The uninterrupted compounding growth, plus using your policy's dividends to purchase more PUAs, make your policy better at growing each subsequent year. This is by design, and you can think of it as a reward for holding up your end of the insurance contract, which is to pay premiums and loans on time.
[24:56] “Nelson is saying if you fulfill your end of the contract… then the company is going to be more profitable than they’re projecting on the illustration with the dividends.”
Over-Engineering Life Insurance Policies
In Becoming Your Own Banker, Nelson shares that life insurance policies are “over-engineered.” He compares this to the fuel light in your car. When that light comes on, telling you that you need to put gas in the tank, it creates an immediate need. However, cars are actually over-engineered to have some space in the tank even when the fuel light comes on. The light creates urgency, yet the reality is that you should have plenty of gas to get to a gas station, and then some.
Actuaries,
If inflation is on your mind, you’re not alone. With three years of high inflation figures and your pocketbook saying it’s even higher every time you buy groceries, how will your money keep up? Can Infinite Banking overcome inflation and provide a long-term solution?
https://www.youtube.com/watch?v=-6wZtPKGOHI
Today, we discuss a listener question about how Infinite Banking can be used to combat inflation. We also discuss the five tenants of infinite banking, such as 'don't do business with banks,' how it can help in an inflationary environment, and how life insurance policies are interest rate driven. Finally, we explore stewardship and generational wealth, discussing the concept of 'human life value' and how clever insurance strategies can be leveraged to benefit future generations.
How Does Inflation Happen?Can Infinite Banking Overcome Inflation?Inflation vs. Death BenefitOvercoming Inflation in a Tax-Free EnvironmentPremium Improves with InflationFamily Banking - The Next GenerationsBook A Strategy Call
How Does Inflation Happen?
[1:47] “Inflation is simply the increase of the money supply. And people argue about this all the time, but Milton Freeman said that only the government can increase the money supply, so the government is solely responsible for inflation.”
When the money supply increases too quickly, there’s an oversaturation of money compared to goods on the market. This raises demand for goods, while supply is low, and prices increase to account for that. When prices for certain products or goods increase, this tends to affect the prices of other correlated goods.
Can Infinite Banking Overcome Inflation?
We recently had a very thoughtful question from a podcast listener that we wanted to address. It’s such a powerful question that we think you’ll benefit from reading it in his own words, as follows:
“Thanks for the content. I'm of the belief that inflation is not transitory (I'm 44 yrs old and I remember when a candy bar was $.50). I am a student of the Austrian School of Economics and only think that inflation will be exponentially worse as the U.S. monetary policy continues to stay the same (increasing the money supply) as that is their only option unless politicians want to be responsible which we know they won't be.
A method that has worked in the inflationary environment since 1971 when gold was dropped completely is to borrow money and pay it back in cheaper dollars (think 30-year mortgage on a house).
I love the thought of IBC in normal monetary times but I just can't wrap my head around how a death benefit (30 years from now (ideally)) will be worth much as prices continue to increase. And I think I would rather borrow from the bank and pay them back with the cheap dollars instead of doing that disservice to myself.....
I just think that the dollar will only devalue more and more and I'm not understanding how IBC has any defense against that. Everything else is great about it in my mind.”
As you can see, he’s put a lot of thought into this topic, and we’re excited to unpack it with you now.
Inflation vs. Death Benefit
There are several reasons that your whole life insurance Death Benefit is still a powerful tool even with inflation. First and foremost, the whole life insurance dividend is interest-driven. This means that as the Federal interest rate rises and falls, so does the dividend. This also affects the guaranteed interest portion, too. This means that you tend to do better than in a savings account alone. Add this to the compounding effect of your cash value, and that slow and steady growth is going to be powerful.
Remember, too, that with PUAs as your Cash Value grows, so does your Death Benefit. The two are intrinsically linked since the Cash Value represents the equity of your Death Benefit. You could start with a DB of $1 million and end up with several million by the time you pass, or your policy endows.
Remember, too,
https://www.youtube.com/watch?v=OWptb6M-_RMIn this fifth installment of the "Becoming Your Own Banker" series, uncover the hidden cost of capital that can make or break your financial future. Find out the benefits of having control over your debt. Get insider information on the cost of capital and become your own banker.The Cost of Capital: You’re Always Paying InterestInfinite Banking is Like a BusinessBuild a Sustainable PolicyWhere Do Policy Costs Go?The Cost of Capital and Company ResponsibilityThe Cost of Policy LoansBook A Strategy CallThe Cost of Capital: You’re Always Paying InterestWhether you realize it or not, there’s always an interest cost. As Nelson Nash says, you either pay it, or you pass it up. What this means is that any time you spend money, even if you’re not financing it at a cost, you’re losing the ability to earn interest on it, too. So, at the end of the day, there is always a cost of capital to your financial decisions.Another way of thinking about this is opportunity cost: What is the cost of making one decision over another? And this has a bigger impact on your life than you think. The Infinite Banking Concept can help with this because it reduces the cost of capital. When you leverage your policy with a policy loan, you can finance something while still earning compounding interest on the full capacity of your Cash Value. This is a powerful shift that allows you to optimize your financial decisions.Infinite Banking is Like a Business[08:35] “I think we mentioned this before; Infinite Banking isn’t something you just try… It does work the way you think it works if you think about it as building your own business. You don’t just open your doors the very first day and all of a sudden people just come into your business and you’re profitable right away. You have all this cost of startup. It’s the same way with the Infinite Banking Concept.”If you want to start an IBC policy, you’ve got to give it a fair shot. It takes some time to build up your cash value and hit that “break-even” point. Part of the reason your policy isn’t immediately “profitable” is because the insurance company front-loads the policy costs in the first decade or so. They’re taking a risk on insuring you, and if you die tomorrow, they have to pay whatever they agreed to without receiving a single additional cent. To mitigate some of this risk, the ratio of premium that goes to policy costs vs. equity is skewed. As that risk falls off, those costs become less and less.Build a Sustainable PolicyDoes this mean that IBC isn’t good? Of course not. It should actually comfort you, as a partial owner, that the insurance companies are running their business sustainably. You want your insurance company to be successful so that your policy can be successful. And that takes time. Life insurance is a contract. When you agree to pay premiums, the insurance company agrees to take care of everything else. If it’s in the contract, you can count on it. And on top of that, your contract cannot change. If there’s anything you can trust, it’s your life insurance contract. More importantly, you are the owner of the contract, not the insurance company. This positions you as the most important player. No two cars perform the same, even if every single thing about them is the same. We can also say this about whole life insurance—even if all variables at the start of the policy are the same as another, the choices you make will change it. All you can do is be a good steward of your policy–-make interest payments on loans (or greater), maximize your PUAs whenever possible, and stay in good standing with your premiums. These decisions will optimize your “mileage” on your policy. Where Do Policy Costs Go?We touched on some of the internal costs of life insurance, so let’s dive a bit deeper. What are the costs that you’re paying, and where does it go? Just like your IBC policy is like a business,
Simon Severino, a strategy advisor for F500 Boards from NY to Beijing, helps companies scale by discovering how to run their company more efficiently. From digital agencies to service and SaaS businesses, Simon's work results in sales that soar. He is the CEO and Founder of consulting agency Strategy Sprints, and Creator of the Strategy Sprints® Method that doubles revenue in 90 days by getting owners out of the weeds. His insights are sure to help you scale your business and stay at the forefront of your industry, whatever that may be. https://www.youtube.com/watch?v=mR35UW3Jwz4Tune in as we interview Simon Severino to discuss how to double your revenue, so you can create more freedom, impact, and revenue every month.The Beginning of Strategy Sprints®Scale Your Business with the 9 Stages of a SaleFalling in Love with the Problem, Not the SolutionConnect with Simon SeverinoAbout Simon SeverinoBook A Strategy CallThe Beginning of Strategy Sprints®Simon began his career in market strategy, and what inspired him most were the entrepreneurs and business owners that were truly passionate about that work. These are the people who, if Simon identified an area for improvement, would happily stay at work longer to solve the problem. Still, Simon saw that there was room for improvement, so he put his head down for a year to create a methodology that would make sales much more efficient. [6:19] “We focus on the B2B sales problems. So the length of the sales cycle, the complexity of the sales cycle. So that’s why our method is really for the high ticket B2B offers, that is. Consulting agencies, marketing agencies, PR agencies, recruiting agencies, financial advisors, attorneys–everybody who has a high ticket offer and needs just a few big deals, a few good clients per quarter.”Scale Your Business with the 9 Stages of a SaleIn Simon’s Strategy Sprint® Method, there are 9 stages of a sale that you have to go through with your client to complete a transaction. These stages are: VisualizationPainsImportanceCOIBudgetConcernsDecisionStart DateSOWThe first step, visualization, is what Simon describes as “closing the loop” between what you say and what’s landing with the client. This could mean providing a visual while you’re speaking to a client so you can bridge that communication gap. Doing this builds rapport with clients and helps them to trust you. The second step is about finding out your client’s pain points. What is frustrating them? Only then can you identify how to help them.[10:39] “It’s so interesting how so many people want to go straight to a product or a solution, when if you don’t have a problem you’re trying to solve, then there’s no solution that matches.”The next steps are to figure out how important this is to your client in the grand scheme of things. Then, determine the “Cost of Inaction” or COI. What will happen if your client doesn’t do anything? (We would call this opportunity cost.) After that, determine your client’s budget, address any concerns they have, and have them make a decision. You may have multiple decision-makers, so this can take time and coordination. Finally, you determine your start date and create a statement of work (i.e. a contract). [13:25] “The number one enemy of sales is the status quo–’I can just do nothing.’”Falling in Love with the Problem, Not the Solution[28:55] “Whatever your offer is, if you fall in love with the solution, there will be a much better solution soon. Technical solutions always, always innovate.”In other words, by falling in love with solutions, you run the risk of being slow to adapt to new technology and advancements. By falling in love with the “problem,” you ensure that you’re always seeking new and even better solutions. This helps you to stay flexible and innovative. As a business owner, you want to be seeking innovation.
If you're going to "Become Your Own Banker" and use the Infinite Banking Concept, you need to understand the laws of IBC. In other words, you need to know how to capitalize a bank and how to manage a sustainable bank. https://www.youtube.com/watch?v=FWgW2T8_WD8Nelson Nash uncovers the fundamental laws of IBC that must be upheld for any bank, including your own banking system, to last. Join us as we continue the conversation through Nelson Nash's book, "Becoming Your Own Banker," today.What is Banking?The History of BankingThe Laws of IBC: Building Up Your Banking SystemPersonal Responsibility and the Laws of IBCExpanding Your Banking FunctionFamily Banking and the Laws of IBCBook A Strategy CallWhat is Banking?[3:12] “Really it’s a process of saving and lending. That’s what banks do. They take in people’s deposits and then they lend out for interest.”This is a simplified overview of banking, though, at its core, that's all banking really is. And if you want to control the function of banking for yourself, that's what it's all about—saving and lending. In your own system, though, you raise your own capital to use, and the insurance company lends it to you, rather than the bank. This is advantageous, though, because you don't have to appeal to banks to get funds. Insurance companies are happy to lend you money if you've got the collateral in your Cash Value. By learning how to control your own banking function, you create a lot more freedom in your financial life, and reduce your dependence on bank institutions. The History of BankingBanks haven’t always existed, but the earliest concept of banking came to be when the currency began to include gold, silver, and other precious metals. Because these metals were scarce and precious, they were highly desired, and robbery was common. Banks offered a solution: put the resources in one place that was heavily guarded, and it would be more secure than your home. After some time, early bankers noticed that people were depositing, but they weren’t really withdrawing. So they wondered if maybe they could use some of that money to make more money, rather than letting it sit idle. So they started offering loans to people seeking a little capital. Then, at some point, banking stagnated again, because not everyone was depositing their gold and silver. So they added an incentive: an interest rate on their savings. Over time, this became what we know today as our banking system, and this function is the same thing that you can do in your personal banking system. Your life insurance policy is not an actual bank, but you can make it function like the above by financing opportunities through your own pool of capital. The Laws of IBC: Building Up Your Banking SystemIf you’re building a banking system, what do you need? Capital. So in the early stages, you want to really focus on accumulating capital. Eventually, when you feel like your pool of capital is hardy enough, you can start capitalizing your cash. When you do this, you can create cash-flowing investments that make paying your policy loan and your premiums simple. Over time, what you’ll be able to do is accelerate this process. For example, once you pay off a policy loan with the cash flow from a property, you can redirect that cash flow to your premiums or even to funding a new policy. Meanwhile, the capital you’ve freed up inside of your policy can be used to buy another property, and you can repeat the process. This takes some research and know-how, but you can create a whole system of wealth by capitalizing on your banking system. While there’s time for accumulation-only phases, don’t be afraid to actually use your policy when a good opportunity arises. So let’s recap:Open a policy.Continue to make deposits by paying premiums.Don’t be afraid to capitalize.Be an honest banker and pay back your loans.
Every year, IBC practitioners and advisors convene at the Nelson Nash Think Tank. Here, some of the best advisors in the Infinite Banking space remember the core truths of Infinite Banking, improve their understanding and ability to serve you, and "sharpen iron." https://www.youtube.com/watch?v=-lRc64JVi0EBruce attended the 2023 event earlier this year, and today, we'll share the highlights with you.So if you wished you could have attended and would like to be in the know about what matters most for you as an Infinite Banker ... tune in now!What is the Nelson Nash Think Tank?Preserving the Purity of Infinite Banking with the Nelson Nash Think TankOvercoming the Human Condition in FinancesThe Conversations and Speakers of Think Tank 2023Book A Strategy CallWhat is the Nelson Nash Think Tank?The Think Tank is an annual event hosted by the Nelson Nash Institute to talk about IBC and connect with like minds. Prior to 2009, which is when Bruce became involved with Think Tank, the event was your typical Mastermind type of event. People in the insurance industry with an interest in IBC would get together and share best practices for running a business. In 2013, the IBC practitioners program came to be, and the event reached its “next level,” as Bruce recalls. The practitioners’ program is a way for advisors who are interested in the Infinite Banking Concept to become certified. This ensures that advisors who use IBC strategies (and advertise such) can be held to a higher standard. That way, clients who want IBC can work with a highly qualified IBC professional. [6:21] “[Bruce] has attended what I would call probably the most elite… conglomeration of minds that are coming together and discussing Infinite Banking.”Preserving the Purity of Infinite Banking with the Nelson Nash Think TankThe IBC Practitioner program was designed by Nelson to ensure that advisors who were sharing IBC with their clients were upholding it to the highest standard. Otherwise, what Nelson noticed was that people would say they promoted it, only to have incorrect ideas about how IBC worked, which was damaging the perception of IBC. In order to be a certified IBC practitioner, you have to go through a rigorous process that ensures you have a good understanding of the concept. So if you want to implement IBC specifically, you can actually work with a certified practitioner to be confident you’re getting what you want. The process starts with an interview, where the NNI makes sure that applicants have the right mindset for IBC. This means you understand Austrian economics, you want to solve people’s need for capital, you understand that you finance everything you buy, and you see the benefits of life insurance on a large scale. The next step to becoming a practitioner is to take a proctored exam. Once you pass, you then go through a mentorship program where you work with a current, certified IBC practitioner. Finally, you get to become a fully certified member, which culminates in receiving your certificate at the Think Tank. As you can see, it’s an incredibly thorough process.[15:43] “This, hopefully, enables people to find a person that was either trained directly by Nelson like I was, or by people that were trained by Nelson, to actually uphold the integrity of the actual Infinite Banking Concept, and not some of the things that are marketed as the Infinite Banking concept.”Overcoming the Human Condition in Finances[24:15] “Nelson actually is helping people overcome the human condition of how they handle money.”As human beings, there is a huge emotional aspect of finance that is hard to overcome. We’re only human, and we all have to face these deep-seated emotions we have about our money. What Nelson Nash has done with IBC and his institute is to help people overcome these emotions and find a sense of control and freedom.A good IBC practitioner will help you see the long-term eff...
Your need for financing is greater than your need for saving. Most people try to make more money or get a better return on their investments to get further ahead. But these strategies fail because they focus on the wrong problem. In Becoming Your Own Banker, Nelson Nash identifies the most prevalent problem with most Americans' financial lives is that they are spending 34.5 cents of every dollar on interest, turning the wheels of the banking industry, yet hardly saving even 10 cents of every dollar. https://www.youtube.com/watch?v=9GFF2wRjiAAThe answer isn't to stop spending but to spend differently. To learn how to control your financial environment, and turn a financial drag into financial fuel... tune in now!The Need for FinancingBecoming Your Own Banker: Start with Good HabitsFinancing and Interest CostThe Cost of FinancingHow to Solve Your Need for FinancingBook A Strategy CallThe Need for Financing[2:30] “What Nelson is saying is that the need for finance is much greater than the need for savings. And that sounds weird, but what he’s saying is if you really calculate how much money goes out the door for financing things, then you’re going to see that that’s a lot greater amount than how much people actually put away for savings. So if you can eliminate the need for finance, then that money can obviously be shifted into savings.”Nelson believed that if everyone got control of their own need for financing, it would also be great for the economy. It’s also just a great way to live your life. When you control the need for financing, you have much more safety, certainty, and security. And that’s priceless. Becoming Your Own Banker: Start with Good HabitsThe thing about Infinite Banking is that you’ve got to go into it with good money habits already. You can’t start a policy with the intention of financing your life if you have bad money habits. Or, you can, but you won’t have the results you want. If you're becoming your own banker, that requires a certain level of personal and financial responsibility. You've got to start with good habits.For example, let’s imagine you have out-of-control spending habits and have racked up some credit card debt. If you buy a policy, you’re now responsible for those credit card payments and your insurance premium. If you then take a policy loan to buy something new, You’re going to have an additional payment. This can quickly get out of hand if you don’t already have good habits of paying down debt and living within your means. IBC isn’t going to magically cure your financial woes. It’s a system and a concept that has to be built on a firm foundation. This doesn’t mean you can’t have an Infinite Banking policy if you have credit card debt. However, you might need to be honest with yourself about where you’re at and where you need to be in order for IBC to be right for you. (And there are still other insurance options for you in the meantime.)[08:10] “I tell people all the time [that] Nelson’s book is more about the human condition and the mindset than it is about the numbers. And yet everybody tries to make it about the numbers.”Financing and Interest CostWhat we often see is that the catalyst for someone to transform their money habits is to be so fed up with paying interest that they’ll do whatever it takes to stop. Whether that’s credit card interest, or interest to the banks, everyone has a threshold. And while interest is always going to be a factor of money, there are ways to reduce your interest cost and increase your interest earned. The problem is that many people are often focused on the wrong thing. For example, you may want to pay off your highest interest rate card first, but you also have to consider volume: You may have a high interest rate on a card with a low balance, and a high balance on a card with a moderate interest rate. At that point, you might save more actual dollars by paying down a high balance first....
If you’ve paid any attention to the news recently, then you’ve probably heard about what’s happening with the Silicon Valley Bank. The news isn't good, and it's probably raising some questions. We’re here to unpack what you might be thinking about. Like, are we entering a banking crisis, and what does this mean for the greater economy? How does Infinite Banking compare?https://www.youtube.com/watch?v=kqOWPOdD8eYIn this podcast, we'll examine the factors that led to the Silicon Valley Bank collapse, and how Infinite Banking can be a solution. Join us for a discussion of the state of banking, and how you can best prepare to weather any economic storm.Is This Normal?The Timeline of the Silicon Valley BankHow Do Banks Get Behind? Reserve Requirements for Banks and Insurance CompaniesInsurance Product vs. CashCould Life Insurance Companies Be Safer Than Banks? Bank-Owned Life InsuranceResources for Bank Failure InformationIs There a Banking Crisis? Book A Strategy CallIs This Normal?We want to start this conversation by sharing that boom and bust cycles are a natural part of any market when the free marketplace is working. This means there will be inevitable highs and lows for everything. Those who are savvy can learn to time the markets by paying attention, although no one does this perfectly 100 percent of the time. What sets people apart is the assets they can control with certainty. And one of the many positives of Infinite Banking is that life insurance is not correlated to the stock market. So despite what’s happening in the economy, your cash value is safe and certain. This is the kind of protection that is not even guaranteed when all of your money is in the bank. It’s critical to build your foundation on something strong and within your control. The Timeline of the Silicon Valley BankTo get a good understanding of what’s happening with the Silicon Valley Bank, it’s worth examining the timeline. At the time of this crash, Silicon Valley Bank was the 16th largest bank in the country and had been just 40 years old. The crash occurred because of large withdrawal attempts and is the largest crash since 2008. On January 1st of this year, the bank had $91 billion of held fixed income securities or held maturities. They also had $200 billion in assets, mostly Venture Capital and tech assets.Out of the $91 billion, the bank’s unrealized loss was going to $15 billion if people pulled out of their maturities due to a need for increased liquidity. They knew they’d be in trouble for the reserve requirements. On March 8th, the bank announced that they needed to shore up their balance sheet and raise $2 billion in capital. They proposed a sale of their bond portfolio at a $1.8 billion loss, but there were no interested buyers. On March 9th, customers began to withdraw due to impending trouble, and the bank’s stock fell 60%.On March 10th, the Silicon Valley Bank failed to meet its reserve requirements, so the FDIC stepped in and seized control.The fear, it seems, stems from the reality that this was a huge bank that seemed like it could never fail. No one expected it to, so when it did, people got extremely nervous about their banks and their ability to meet their needs as well. The problem is that when people are fearful and lose faith in the banks all at once; it creates a vicious cycle. Because the more people that pull their money out at once, the harder it is for banks to meet their reserve requirements and other obligations. As Bruce points out in the show, this is also the first time such a large bank failure has occurred in the age of social media, and so the information is more readily accessible. While it’s good to be informed, this can also lead to a lot of fear because things spread like wildfire on social media. How Do Banks Get Behind? [8:50] “What happens here is we’ve been going from a very low interest rate, almost no interest rate,
Infinite Banking is an exercise in imagination. And in an act of imagination, Nelson Nash introduced a powerful example of how to capitalize on a whole life insurance policy and be an honest banker. He often referred to this concept as "don't steal the peas,” which he explains in his book, Becoming Your Own Banker. https://www.youtube.com/watch?v=baPGoTOZ_H4Today, we’re going back to this book, the “source” of IBC, and unpacking this idea of “don’t steal the peas.” That means examining the principles that make the Infinite Banking Concept work, and how understanding the fundamentals allows you to change your financial life. If you’re ready to jump into the conversation, learn from the original text, and gain understanding and wisdom… tune in now. Table of contentsAn Exercise in ImaginationBeing a Good Business OwnerDon’t Steal the PeasWhat Does "Don't Steal the Peas" Have to Do With Life Insurance?Book A Strategy CallAn Exercise in ImaginationNelson Nash said it often: Infinite Banking is an exercise in imagination. So what does this mean, exactly? The way Nelson saw it, if you understand how to think about problems, the solutions will become clear. Imagination is simply a method of thinking about things—it’s how we re-envision what we experience. That can be used to see problems in a new light, one that yields new results. [9:57] “Imagination is all about a thought process, and getting your mindset in a position to be able to see the capability and the possibility of what you can do in your financial life. And to recognize strategies and tools that will help you do that even better.”Imagination is how humans achieve innovation. Our ability to see problems in new ways is the reason we have advancements in math, science, technology, and any other field conceivable. We can say the same for finance. And Nelson Nash’s idea of “don’t steal the peas” is a perfect act of imagination that explains the foundation of IBC and why it works so well.Being a Good Business OwnerLet’s imagine, together, that you are a business owner with a thriving grocery store. As a human being, you also have a need for groceries. So you are both owner and customer. That is assuming you’re not shopping with your competitor. Keep in mind that as the owner of this store, you need a lot of capital to get started. You want a prime location, a pleasant building for your patrons to be in, and furniture to display your wares. Then, of course, you have the costs of keeping up the store like paying employees, buying stock, maintaining the building, and other overhead costs. Since you own the store, you might think it’s no big deal to grab something off the shelves every once in a while. A can of peas, so to speak. You can simply write it off as a loss, right? The truth, though, is that it’s not a wash. You’re actually reducing your future value. The thing about a business is that eventually, you want to sell it. Maybe not this generation, but it’s a possibility. And when you do, that buyer is going to look at your Profit and Loss statements. To get as much value as possible in the sale, you want to have proof of a profitable business. Yet if you spent your entire life taking groceries from the back room, you were actually stealing from your future self. In fact, you’re even reducing your present cash flow by taking what you want instead of paying for it. Don’t let your business eat the cost. Instead, be an "honest grocer" by buying what you want. This will flow back to you now in your income, and later if you sell the business. Don’t Steal the PeasIf you're having trouble imagining how detrimental it can be to steal the peas, let's keep this thought going. Let’s talk about the peas, specifically. Let’s say a can of peas comes to your business through the “back door” when you buy it. And every can of peas that comes in through the back door costs you about 57 cents.
Are you looking for good investment opportunities to put your capital to work? Have you considered franchising as an opportunity for business ownership without starting a company from scratch? Today, we're talking with Jon Ostenson, a top 1% Franchise Consultant, former Inc. 500 Franchise President and Multi-Brand Franchisee, and author of "Non-Food Franchising." So if you want to learn about the non-food franchising business model, the pros and cons, and why this might be a good fit if you're already in real estate...tune in now!https://www.youtube.com/watch?v=WEMh7BSNPl0Finding Your Non-Food NicheIs Franchising Right for You?Franchise Ownership StylesHow to Work with Jon OstensonAbout Jon OstensonBook A Strategy CallFinding Your Non-Food NicheOwning a business franchise has been a time-tested way to get into business ownership with a tried-and-true business model. Many entrepreneurs like it for the relatively low barrier to entry. You don’t have to pioneer a new idea, you just have to invest in an existing one. It’s also a way to bring much-needed business to your community. While many people think of restaurant chains when they think of franchises, there’s so much more to franchising than food. And that’s where Jon Ostenson comes in. He has ample experience in the franchising-industry and sees non-food franchises as a particularly shrewd investment because they’re often necessities. Pet supply stores, auto shops, and pharmacies are just a few examples of essential businesses with franchising potential. If you think you want to break into franchising, Jon’s advice is to think about the gaps in your community and what people need—not just what they want. Because if a recession hits, businesses that are “non-negotiable” are going to weather the storm.[7:59] “What I go back to is, what are you personally going to continue to spend on regardless of the economy? It’s the things you care about—your kids, your pets, your aging parents, your home, and your health. And so businesses that operate in these types of industries—again they’re more needs-based in a lot of cases, maybe a little less discretionary—those are the ones that are getting a lot of attention.”Is Franchising Right for You?One benefit of franchising that Jon shares is that it’s a way to increase your Net Worth through income rather than appreciation. If you’ve got the capital to invest and you want something that’s already got a blueprint, franchising can be great for you. Especially once your location is up and running, you don’t have to have constant involvement. In other words, franchising can be great for the investor who’s “been there, done that,” and is ready to take a step back from full-time business operations. On the other hand, if you’re wanting a business that you can leave your mark on, franchising might not be the way to start. Despite owning your particular location, you’ve got to operate your business within company parameters. You might have a say in some factors of the business, but you won’t be able to dictate anything that messes with the franchise's “brand.” After all, one of the major benefits of franchising is that you get to capitalize on brand recognition immediately. You’ve got a built-in customer base, and those customers have certain expectations of the brand. If you really want to have a hand in the business down to the last detail, you might find more fulfillment in starting your own business. That way, you have complete creative control over the operations. Franchise Ownership StylesWhile owning a franchise business can be a bit more hands-off than starting your own, it’s not a completely passive endeavor. There’s absolutely some time trade-off when you own any business, including an existing one. However, this obligation can be greater or lesser depending on your own personal management style. Let’s go over the three ownership styles Jon has personally witnessed.
Want to get the nuts and bolts on Infinite Banking? What is the infinite banking concept? Why does it work? How does it benefit your life? In this new series, we're returning to the source: the original text on Infinite Banking: Becoming Your Own Banker, by R Nelson Nash, the father of Infinite Banking. https://www.youtube.com/watch?v=eTrdnOSPjWQTo start, we'll dive into how banking impacts you, and why this macro view of the flow of money is just the perspective you need to take control of your finances. Jump into the conversation on the Infinite Banking Concept, learn from the original text, and gain understanding and wisdom to make decisions.Table of contentsWhat is Infinite Banking?Why the Banking Concept MattersBeing a Responsible BankerThe Power of Thinking DifferentlyThe Flow of MoneyBook A Strategy CallWhat is Infinite Banking?Infinite Banking stems from Nelson Nash’s book, Becoming Your Own Banker. In his book, Nelson Nash shares how individuals can use banking principles to make better decisions about their wealth. It stems from the idea that we all finance everything we buy, even when we aren’t financing it by "typical" financial standards. In most cases, when we think of financing, we think of getting a loan to pay for something. So how does paying in cash mean we’re financing? Simply put, it’s about opportunity cost, and the ability to either pay or earn interest. Whether or not you see it, there is interest attached to every transaction. When you pay cash, you lose the ability to earn interest on that cash. This is opportunity cost, or the cost of making one decision over another.[7:15] “Nelson’s definition of financing means that if you pay for things in cash, you’re also financing that [purchase] because you’re giving up the ability to earn interest on that money. So you’re either paying interest by paying it to an institution, or you’re giving up the ability to earn interest, which is the same thing as paying interest.”Infinite Banking allows you to recoup as much opportunity cost as possible, via the policy loan provision on your cash value life insurance. When you take a loan, you’re not actually using your money, which means it continues to earn interest uninterrupted. This compounding effect is powerful. And even though you will pay interest on the policy loan, that compounding effect is incredibly valuable. Why the Banking Concept MattersNow, we know that the average person probably isn’t walking around wishing they could be their own banker. So what’s the value in doing this? Part of what Nelson acknowledges in his book is that 3% of people control 97% of the world’s wealth. In order to do this, this 3% operates their finances a bit differently than the average person. The basic idea is that the 3% have control of their money because of where they store it and how they use it. They recognize the power of financing and leverage, rather than paying cash for transactions, and can use that to create wealth that flows. Essentially, through this system of control, you can eliminate the need to seek outside financing for many things. And the cherry on top is that you can do this with a renewable, growing pool of money by taking policy loans and paying them back. Whole life insurance itself is not the bank. It’s life insurance. But IBC allows you to use your policy so that it performs the same functions as the bank. What do banks do? They allow you to store cash, earn interest, and pursue financing. The Case for IBC is: IBC simply allows you to take the control instead of keeping it with the bank. Being a Responsible BankerPart of being your own banker and using life insurance to fulfill the banking function is being a responsible banker yourself. You are the “manager” of your funds, so it’s a good idea to hold yourself accountable for your choices. IBC isn’t just about capitalizing and using your cash. First,
Concerned about taxes in the future? Taxes are a huge eroder of wealth. While you do not have control over tax rates, you can strategically position yourself to maintain control of as much of your money as possible. Taxes are at a historic low, so it is time to learn how to pay less tax legally.https://www.youtube.com/watch?v=SB4IoCq9Y-8So, if you want to find out how to protect your wealth from likely tax rate hikes and minimize your tax rate ... tune in now! *Disclaimer: This is not tax advice.Table of contentsTaxes Are Paid on the MarginReducing Your Taxable IncomeActive Tax PlanningWhat is Tax Deferral?Are There Tax “Loopholes”? Book A Strategy CallTaxes Are Paid on the MarginA common misconception about taxation is that your tax bracket is the percentage of tax you pay for your entire ordinary income. In reality, everyone is taxed the same way, on the same dollars. Income is taxed on the margin. So for married couples, everyone’s first $20,550 is taxed the same exact way, at 10%. The next margin is taxed at 12%. So everyone’s income from $20,551 to $83,000 is taxed at 12%. Any income you make past $83k is taxed at the next bracket, which is 22%. The highest bracket is 37%. You may be able to reduce your taxable income through deductions, and that comes off the top. So if you make $100,000 in a year, only 10,550 of those dollars are being taxed at 22%. If you can reduce your taxable income by $10,000 then only $550 gets taxed at 22%. In other words, just because you’re in the 22% tax bracket does not mean that 22% of your income is going to taxes. It represents which margin you’re in. This also means that everyone is being taxed the same on the same dollars. If you reduce your taxable income, you’re not being taxed unfairly because you’re still being taxed in the same way as everyone else. Source: Truth ConceptsIt’s also important to note that the above pertains to ordinary income, which is W-2 income and many investments. Capital gains—income from the sale of investments—have a different tax structure.Reducing Your Taxable Income[7:13] “Your taxable income is all your [ordinary income], minus your deductions, which is either because you itemize… or the standard deduction. And then if you own a business, you also get what’s called a qualified business deduction. And then you come up with the taxable income after that.” The standard deduction is $12,950 if you’re single, and $25,900 if you’re married and filing jointly. If your own a business it is worth itemizing your expenses and seeing if they exceed the standard deduction, to get the most benefit with your taxable income.It’s also wise to be mindful of how you access different accounts that you own. Many people love their tax-deferred 401k because they can defer paying taxes on their contributions. They see this as a tax credit when really it just means you don’t have to pay taxes yet. But if you need access to those dollars, you can bet you’ll be paying income tax. That’s why it’s powerful to have other sources of liquid cash that won’t increase your taxable income. A policy loan from your whole life insurance or a Roth IRA, for example.Active Tax PlanningBy 2026, the tax brackets will shift in a way that may necessitate some active tax planning. This means working with your trusted tax advisor to come up with a plan. The reason is that in 2026, the 22% margin will return to 25%. The top threshold of the margin is also decreasing from $178,000 to $153,000.What this means is that if your income is around $153,000 to $178,000, you could make less money in 2026 and still be in a higher tax bracket. This also means that any money you make from $83,550 to $153,000 will be taxed at 25% instead of 22%. If you are close to that upper threshold, work with a trusted tax advisor to reduce your taxable income. And if you have tax-deferred assets, you think you’ll want to access or liquidate; doing i...
Want to hear from a business owner like you who is using Infinite Banking in their personal and business financial strategy? Today, we’re talking with Mich Hancock, a social media marketing professional familiar with LinkedIn, TEDx, and CEO of the digital marketing agency 100th Monkey.https://www.youtube.com/watch?v=o9soHCbc6SESo, if you would like to hear about a client’s experience getting started with Infinite Banking and working with our team, and hear some tips to improve your social media strategy… tune in now to join the conversation!Table of contentsWhat Brought Mich to Infinite Banking?The “Hundredth Monkey” PhenomenonTechnology Ages UpHow Should Business Owners Think About Social Media?Scheduling Your PostsHow Do You Create Relevant Content?How to Get Involved in TEDxConnect with Mich HancockAbout Mich HancockBook A Strategy CallWhat Brought Mich to Infinite Banking?Mich found infinite banking through Bruce when they met through a mutual connection. Since then, she has relied on Bruce’s expertise with whole life insurance to help her make decisions, so she can focus on her zone of genius: marketing. [6:41] “I’m not the person you would ever want to do accounting for you. I’m the person you want doing marketing for you. And [working with Bruce is] just like a way of feeling like I’ve got this covered. Like this is all good, it’s going in the right direction, I understand what’s happening enough to where I feel good and safe around all of it.”After a series of personal experiences, including a divorce, Mich had a moment where she realized she needed to figure out her money. She had things to pay for in the future and saving would not happen on its own. When she met Bruce and learned about IBC, it felt “like there was a path.”[9:40] “It just made me feel like I can sleep at night and I’m going to be fine and figure all of this out… So mentally, emotionally, financially, spiritually, it was like [relief].”The “Hundredth Monkey” PhenomenonMich’s marketing company is called 100th Monkey and is based on an actual phenomenon. It stems from an experiment where monkeys were placed on an island under observation. The scientists would throw sweet potatoes to them, which would get sandy, and the monkeys would eat them, regardless. That is, until one day, one monkey decided the sandy sweet potatoes weren’t all that appetizing. So he took the sweet potato to the river and washed it. Little by little, the other monkeys adopted this habit too. And by the time the 100th monkey adopted this habit, it became the new normal. [13:54] “That’s how I viewed social media. When I started in social media, at least in the Midwest… people were like ‘Don’t make me think about another thing about marketing.’ And I kept thinking, it’s going to catch on; it’s going to become the habit. And it did. I mean now social media is pervasive, it’s a part of everything we do.” [14:32] “You want to be ahead of that digital game so that you can make the most of it for your clients.”Technology Ages UpMich shares that TikTok, despite some opinions people hold, may be the next up-and-coming social media site for everyone. Right now, the majority of TikTok users are young. However, the longer the app persists, the more the user base and audience age up. Those who can adopt early can make the most of this before it’s over-saturated (or before the next best platform happens). [15:30] “The earlier you can get there and develop your audience, the better.”100th Monkey also has their eye on Web 3, which is only conceptual for now and is considered to be where the future of the web is heading. It’s all about decentralization. Included in this new wave is NFT technology, which is finding its footing. How Should Business Owners Think About Social Media?Mich’s first piece of advice for business owners looking to improve their social media game is simple: be authentic.
Are you concerned about rising interest rates? How will they affect your Infinite Banking policies? What about inflation and infinite banking? What do interest rates mean for infinite banking? https://www.youtube.com/watch?v=CbHu0HqwCWAToday, we'll be discussing the infinite banking concept, and how it relates to interest rates. We'll also explore the implications of this concept for infinite banking customers and whole life insurance customers. We want you to have a better understanding of what interest rates mean for infinite banking. This includes the implications for you and your financial situation.So, if you want to know what to expect ... tune in now!Table of contentsThe Basic MechanicsInterest Rates Don’t Matter Interest Rates and Policy DesignShould You Have a High-Base Policy?Book A Strategy CallThe Basic MechanicsWhen you work with a non-direct recognition company, there’s usually only one borrowing rate. The rate is based on the Moody Bond Index. At the time we recorded our podcast, most non-direct recognition companies were sitting at about 5 percent for their borrowing rate. Direct recognition companies generally have a variable borrowing rate. At the time of recording, it ranged from 3.25 percent up to 5 percent. (Note: At the end of the day, the long-term cash value outcomes are incredibly similar, whether you choose direct recognition or non-direct recognition. Don’t get too hung up on the distinction.)The Moody Bond Index is a conglomerate of bonds that indicates the general trend of bonds. [11:37] “So what the insurance companies do is they base their borrowing on that because they want to be competitive.”Life insurance companies don’t mind lending money to policy owners, because they actually make a pretty good return. If they can make 5 percent on fully collateralized cash with their policyholders, they don’t have to risk that money in the market, even if the market in question is fairly safe. They raise rates as appropriate in order to remain competitive with the bond market.While it can be frustrating to see interest rates being raised, there are still benefits for you, the policyholder. After all, mutual companies must share profits with all owners—AKA policyholders. By keeping borrowing rates competitive with bond rates, they can benefit policyholders in two ways—by providing access to cash AND by making a profit. That way, companies don’t lend at the expense of profits in the bond market. When the company pays dividends, you and all other policyholders benefit. Interest Rates Don’t Matter Nelson Nash has said time and time again, “Interest rates don’t matter.” So what does that mean, exactly? [18:08] “If you have more and more money in the form of premiums go into the insurance company, those insurance companies are going to deploy that to make money for the policyholders. And that money is going to get paid back in the form of dividends. Seventy-five percent of that is in the form of bonds. So as interest rates go up—bonds are interest-rate sensitive—they will then pay out greater dividends. And throughout the history of these mutual companies, the dividend rate has always stayed above the lending rate.”The life insurance companies are not interested in making less money than what they’re lending out, because they have to consider their policyholders. Life insurance companies are great at making a profit, and it’s to the benefit of everyone. [19:10] “It’s really important to recognize the rising interest rate does not only affect the borrowing component of infinite banking. It also impacts your growth rate on the dividend side.” Translation: don’t sweat it too much when loan rates increase, because that means everything else is increasing too. And with dividends, that means good things for you and all other policyholders. Interest Rates and Policy DesignIf you want to see for yourself how the interest rates and dividend ...
Money is often confused, misunderstood, and classified as part of our basic, natural, carnal human nature. But money is spiritual. Understanding, earning, using, managing, and growing money is a part of our lives that is deeply spiritual. Rabbi Lapin knows this, and shares his wisdom about money far and wide. https://www.youtube.com/watch?v=kdDMBgWHwkgToday, Rabbi Daniel Lapin explains why, and how you can improve your finances with this one simple mindset shift. Tune in now to join the conversation!Table of contentsOn Redistributing WealthMoney Is Spiritual: The Spiritual Attributes of MoneyThe Exception, Not the RuleWhen Should You Teach Children About Money?How Do You Price Your Services?About Rabbi LapinConnect with Rabbi LapinBook A Strategy Call[3:45] “You’re only a slave to money when you don’t have the money.” On Redistributing Wealth[6:48] “The one problem is that we don’t have a successful model anywhere in history to go on. You know, when has this approach to economics actually worked? When and where? Oh, nowhere at no time? Well then, I recommend you be extremely cautious about applying something to the lives of three hundred million people that hasn’t been successfully done anywhere. That’s one huge problem. The other huge problem is that redistribution or equality is just a really nice word for a really ugly idea, which is taking money away from people who own it. And that’s really a fundamental value of all morality. We really have to decide: Do you or do you not agree with the statement that nobody else has a right to any money that you have made?”[8:00] “Something that’s really worthwhile [for people to understand] is that the government can only get money by taking it from the people who have made it. The government has no way to create wealth. The government can print money, but that’s just another way of taking it away from productive people, it’s called inflation. And so, no, there is no way for the government to give you money other than taking it away from other people.”Money Is Spiritual: The Spiritual Attributes of MoneyWhen something is physical, as Rabbi Lapin shares, you can measure it in a lab. It’s real and tangible. When something is spiritual, it’s felt. You cannot measure it in any scientific way. And yet, the affects of spirituality can be observed. While money may have physical uses, it also has spiritual significance, because it can transcend physical results. [16:44] “Each and every one of us can benefit financially by understanding the spiritual implications of what money really is.”When you give someone cash, there’s a physical connection between the value of the money and the work that went into earning that money. It helps others, like children, understand the true significance of what they have, and its spiritual value. Credit cards and digital payments separate us from the value and work that went into those dollars and can make it difficult for kids to understand and appreciate them. [20:09] “I always made a point of walking around with more cash than I ordinarily would, simply because I wanted to make sure that if I needed to give money to a child for any legitimate purpose, it was always in cash.”[22:57] “Money is brought into being when one human being serves another. There is no other way of money being created. And people must really understand that if the government prints money, that’s really not the creation of money at all.” The Exception, Not the RuleOf course, one of the arguments against the "money is spiritual" idea is that bad people have money too. To this, Rabbi Lapin shares a story about the time he met the actor George Burns. The actor smoked a few cigars a day and was in good health. The conclusion that some people might draw is that you can be perfectly healthy by smoking cigars. However, George was clearly the exception, not the rule. There’s plenty of evidence that it’s not good for you.
Considering Infinite Banking, got questions? We love your questions because we know that gaining clarity and getting answers frees you up to make decisions about your financial life. And chances are if you’re asking, someone else is too! Today, we're tackling audience questions on inflation, pensions, and infinite banking.https://www.youtube.com/watch?v=9Hsoxa0Q3PgTo get more clarity on common questions we get from our tribe, tune in now! Table of contentsHow Do You Weather the Current Economy?How Do You Track Borrowed Funds?What Are the MEC Guidelines on Single Premium Life Insurance?Think Long-TermAre IBC Policies Inflation-Proof?How Do You Maximize Your Pension Plan?When Can You Borrow from Your Policy?Why Do You Lose Control When You Pay Back Your Mortgage?Do the Cash Value and Death Benefit Both Get Paid at Death?Does Infinite Banking Work Internationally?Do I Have to Take a Policy Loan if I Have Other Options?Book A Strategy CallHow do you weather the current economy? This is a good time to be in a position of cash and wait for the right opportunity. This means raising your standards and only choosing high-caliber deals that align with your values. This is also a good time to innovate in your field. How Do You Weather the Current Economy?To be more specific, this listener asked how they can navigate the current economy and also create passive income within a year. Is this possible? Getting capital within a year may be difficult because the Fed is tightening up on capital. This is part of the reason we’re looking at a recession now. Remember that “opportunity seeks liquidity,” as Nelson Nash would say. Don’t feel like you need to deploy capital right now. Since the cost of capital is increasing, you want to wait for the right deal, not just any deal. It’s good to be smart and hang onto your capital until you find something that meets all your standards. This is also a good time to network and connect with other professionals that you can learn from. Be sure you’re connecting with high-caliber people that have good advice that aligns with your values.You can also look at your current career path or income stream and seek ways to increase that revenue now. That doesn’t necessarily mean investing. It can also mean expanding your offerings, pivoting to fit the market, and improving your services. A recession is a long game, so you need to think about the bigger picture as you navigate this time. Short-term decision-making won’t serve you in this economic climate.How Do You Track Borrowed Funds?Whether you have a large portfolio of policies or just one policy, you might have some loans you want to track. Staying organized can help you with your due diligence, however, don’t get too bogged down with the minute details.One way you can keep track of things is by opening a separate bank account. When you take a loan, put the money into that one account, separate from your other money. Then pay for the investment or whatever you’re doing from the new account. Then send the cash flow from the investment back into that checking account. You can then use this as the fund with which to pay back the policy loan. This way, everything is organized, yet you don’t have to get into the weeds to track it all. If you’re really picky about it, you can have multiple accounts, one for every loan or investment. Whatever you do, make sure it works for you and makes things easier, not harder. What Are the MEC Guidelines on Single Premium Life Insurance?This viewer asked about the guidelines for Modified Endowment Contracts (MECs), and whether there is some benefit for churches or non-profit organizations. A MEC policy is a policy that has been overfunded in the early years and loses its designation as life insurance. This is an IRS guideline to prevent people from laundering money or using life insurance as a tax shelter. When a policy becomes a MEC,
You only have 18 summers with your kids. How will you make them count? Today, we’re talking with Jim Sheils of 18 Summers and author of The Family Boardroom. We're digging into how you—the entrepreneur, business owner, and busy parent—can deepen your relationship with your child.https://www.youtube.com/watch?v=7Mg58L5y8J8So, if you want to create lifelong connections, trust, bonding, respect, and experiences in your family… tune in now!Table of contentsThe Origins of 18 SummersThe Power of 18 SummersThe One-to-One PrincipleYou Must Be PresentSay the UnspokenAbout Jim Sheils Book A Strategy CallThe Origins of 18 Summers[1:00] “Basically, there was a study done that the average person will spend… almost 85 percent of all the quality time they have with their children by the end of the 18th summer. Which starts to make sense, you know, because the time minimizes when they’re moving out and becoming adults and possibly not living near you. So it’s saying try to make the most of those 18, because [then] they’ll want to come back for more.”This flies in the face of common entrepreneurial advice that you should put your head down and focus solely on your business for 5 years. Supposedly, after that, you should have all the time in the world. However, Jim feels that this is the wrong way to approach business and family culture. Because if you don’t make the most of those first 18 summers of your children’s lives, you’ll lose out on future opportunities to be with them. [13:35] “When you think about it, they turn 18 [and] they can go off to college, join the military, go out on their own. They’re out of high school. I don’t know about you, but my 19-year-old doesn’t hang out as much with me. Although we hang out, he doesn’t hang out with me as much as my 5-year-old.”The Power of 18 Summers[14:20] “It causes a positive urgency.”This is the power of the “18 summers” mindset. Of course, you’re going to have more time with your kids than that. However, those first 18 years are pivotal to your relationship with your children. Those years are formative for them and are the foundation of your relationship. Despite the time you have after they turn 18, you’ll never have more time than you do while they’re still in the school system. Spending time with your children and making memories while they’re young will lay the groundwork for how the future goes. [14:38] “Here’s what I know [from] working in this over a decade: you do those first 18 years right… the odds of your child [wanting] you to be a part of their life as an adult go up dramatically. [If] you’re missing, you’re not there, you’ve just been kind of a distant, disciplinarian, ATM machine that wasn’t part of the family life, the odds go down.”The One-to-One Principle[17:05] “If you want to have a really strong family and those dynamics of deeper relationships, you have to separate the parts to strengthen the whole. And that is what we call the one-to-one principle. One-on-one time. One-on-one time puts the magnifying glass on that individual relationship, takes away sibling rivalry, gives full attention. It is an absolute potent, potent relationship builder that’s rarely practiced.”This, Jim shares, is the secret to building strong relationships. Yet when you build a family, having one-on-one time can seem inefficient—you’ve got so many people to bond with and seemingly little time. But it doesn’t take much, it just has to be intentional. This is something you should do with your spouse, your siblings, your kids, and your in-laws. Your kids should have one-on-one time with each other. This can take work, and it is so worth it in the grand scheme of things. You have to schedule and plan this time and prioritize it to ensure that it happens. And there should be balance so that all children feel like there is equal attention and care. If you feel like things are disconnected, stale, or fraught in your household,
Despite the fact that many know they need life insurance, nearly half of consumers do not have insurance, according to a 2021 LIMRA study. The most common reasons are that they think it is too expensive, they have other financial priorities, or they aren’t aware of what they need and what type to purchase. To help you overcome the hurdles and make decisions to shrink your life insurance coverage gaps, we’re sharing the top 10 reasons you need life insurance.https://www.youtube.com/watch?v=vuKJznszXbESo, if you have life insurance needs, doubts, interests, questions, or even fears, and you want straight-talk, no-nonsense answers… tune in now!Table of contentsWhy Do People Need Insurance?How Much Life Insurance Do You Need?10 Reasons People Buy Life InsuranceThe Benefits Outweigh the CostsIncome ProtectionPeace of MindTax Advantages to Grow Wealth FasterAdditional Retirement Income StrategiesAutomatic SavingsExcellent, Efficient Cash StorageAbility to Capitalize on OpportunitiesVelocity of MoneyGenerational WealthLinks for Further ReadingBook A Strategy CallWhy Do People Need Insurance?[1:50] “I really just think it comes down to [the fact that] people do not want to face their own mortality. I think I said this once before on a podcast—we all know we’re going to die, we just don’t believe we’re going to die.”It’s almost an evolutionary development because if we were constantly obsessing over our mortality, the world would be a much different place. Even so, people think about their deaths the more they have to protect: families, estates, etc. Life insurance is the product that protects your family and estate if you die. Knowing that that protection is in place, you can sleep easier at night knowing that what matters to you will be taken care of no matter what. How Much Life Insurance Do You Need?Unfortunately, many families in the US are underinsured. Life insurance is perhaps one of the only insurance categories where this can happen. You can’t underinsure your car or your house, nor would you want to. Yet people underinsure themselves all the time. One way this happens is because many people calculate their insurance by using a “needs analysis.” In other words they count out how much money they’d need to pay off their home, car, and other debt if they passed away. Sometimes they include the cost of their children’s education. However, this doesn’t account for any income. While this is of course a better approach than having no insurance, there’s an even more effective way.It’s called the human life value approach, or HLV. This is a way of calculating all the income you’d earn over your working years so that your insurance can act as a full income replacement. So if you’re 30, you may multiply your annual income by 30 to get your HLV. If you’re 50, you’d multiply it by about 10 or 20, depending. While this number seems shocking to many people, it’s realistic. Insurance companies won’t overinsure you, and they calculate HLV to determine the maximum amount of insurance you are entitled to. Many people don’t start out with enough liquidity to pay the premiums for their full HLV. However, just by knowing what that number is, you can feel more confident in the amount of insurance you do choose to purchase. 10 Reasons People Buy Life InsuranceWe don’t want to tell you what you “need,” because everyone has different circumstances. However, what we can do is share with you why people buy life insurance, and why they keep it. Hopefully, these can help you decide for yourself whether life insurance will be a benefit to you.The Benefits Outweigh the Costs[17:10] “Instead of painting in your mind ‘It’s too expensive, I can’t do it,’ just check it out first. And then figure out if it’s too expensive.”The problem with “too expensive” is that it means something different to different people. For some, it may mean that they can’t fit it into their monthly expenses.
Do you want to build your family bank that will provide capital to you and future generations? Come see behind the scenes as we talk about our Marshall Family Banking System in real-time. https://www.youtube.com/watch?v=c4u4YRT5wIsToday, we’re updating you in real-time to show the impacts of paying another year of premium, how our cash value is growing, and our vision for how we’ll use our family bank as the foundation to grow generational wealth.So, if you want to see exactly how and why you can grow a family bank to secure capital reserves for your family for generations to come… tune in now!Table of contentsHow Do Life Insurance Illustrations WorkA Brief History of the Marshall Family BankMaximizing Human Life ValueThe Capitalization Phase of Infinite BankingWhere the Marshall Family Bank StandsOther Installments of the Marshall Family Bank SeriesBook A Strategy CallHow Do Life Insurance Illustrations Work[3:45] “What I want you to understand is that the illustrations are simply snapshots in time. They are the insurance company’s best guess at what’s going to happen. In some periods of time—whether it’s 5 years, 10 years, 20 years, 30 years—[the policies do] better than what they projected. And then some periods of time they’re slightly worse than what they projected.” Because of the nature of these projections, illustrations go out of date quickly. As soon as the floor of your cash value increases, your illustration is out of date. First, you’ve “locked in” your cash value floor, which will affect all future projections. And second, every year the companies declare new dividends, which will change the projections. Ultimately, when you look at an illustration, it’s a snapshot in time. So although you can trust the general trajectory of your policy, thanks to the good work of the actuaries, it won’t be accurate to the dollar. Don’t get bogged down in the minor details of illustrations. What’s most important is that you find a mutual company with good business practices. [9:13] “There are too many people selling on the basis of an illustration, which is a projection, which can look really good up front. But the real reason to have an infinite banking policy is that you’re looking for a place to store cash that is safe, it’s liquid, and that’s growing. And if you’re looking for as much safety [as possible], you want a stable, solid company.” A Brief History of the Marshall Family BankWe’ve discussed how we got into Infinite Banking in other posts, but we’ll do a quick recap for you here. In December of 2012, we opened our first infinite banking policy on Lucas. At the time, we had a pretty sizeable store of gold and silver but found that we weren’t in a position of much liquidity that way. Because the market was down at the time, we ended up losing about half of what we put into those assets. This was a major catalyst for us to change how we thought about our savings and capital. We realized how valuable it was to have quick and easy access to your money, as well as protection from market losses. In November 2021, we did a 1035 exchange of that policy into a new policy with a higher annual premium of $20,000. Then, about 7 months ago, we opened a policy on me, as previously I had only had term life insurance. That policy has a $30,000 premium. When we set up my policy, we backdated it by six months, before my birthday. This allowed us to get more bang for our buck because the cost of the insurance is less the younger you are. It also allowed us to put more capital in from day one of the policy. So our first premium was able to be retroactively applied to when we backdated the policy. Effectively, this allowed us to pay two years' worth of premiums in a year. Maximizing Human Life ValueIn addition to our two whole life insurance policies, we also have term insurance that helps us reach our full Human Life Value.
Mass Mutual, a top life insurance company and heavily relied upon insurance carrier in the Infinite Banking space, recently came out with a memo to their agents against the Infinite Banking Concept.https://www.youtube.com/watch?v=IFhcV4Kp1ygThey shared that the company doesn’t support concepts that promote or present whole life insurance as a personal banking policy that prioritizes maximizing policy cash values and immediate and regular access via policy loans. [paraphrased]Today, we’ll talk about why an insurance provider may choose to take this position, why this doesn’t impact the Infinite Banking Concept, and how you, as a wise financial steward and wealth creator, can ensure you’re making the best decisions.So, if you’re considering Infinite Banking, and you want to see exactly what you should watch out for … tune in now!Table of contentsWhy Would Mass Mutual Denounce Infinite Banking?Combating MisinformationWhat Does This Mean for the Future of Infinite Banking?What Should You Be Aware of About Infinite Banking?Sales Tactics vs. Education and DisclosureBeware of Transactional Relationships Recognize that Illustrations are Projections, Not PredictionsKnow You’re Buying Life InsuranceBook A Strategy CallWhy Would Mass Mutual Denounce Infinite Banking?When a company shoots down the infinite banking concept, what they’re really doing is denouncing the use of oversimplified sales tactics in the sale of whole life insurance. In other words, Mass Mutual and other companies have an interest and a duty to make sure that life insurance remains life insurance. That means that the death benefit remains the purpose of a life insurance policy. This doesn’t mean people can’t use whole life insurance to save money and take policy loans. In fact, life insurance companies legally must allow policy loans as a contractual provision—they’re not going anywhere. Insurance companies like Mass Mutual are simply taking a stance against practices that may indicate that life insurance is not performing first and foremost, as life insurance should. This statement is about the integrity of the industry, not about IBC in general.Combating MisinformationThere’s a lot of misinformation about infinite banking policies, both within the IBC community and without. And one of the major problems within the industry is that advisors are trying to make whole life insurance look better than it is. And to be clear: whole life insurance is a very good product. But it’s not magic. The problem arises when people attempt to spread information that makes it seem magical. It’s unfortunate when clients purchase a whole life insurance policy only to be blindsided about how life insurance actually works. We’ve heard many a horror story about how clients didn’t know their policy loans counted against their death benefit if they didn’t pay it back. Or they believed that the cash value was unrelated to the death benefit. Many clients are also misled about how life insurance is taxed.It’s critical that companies like Mass Mutual take a stand against this misinformation in order to protect consumers. This is, first and foremost, the priority of the life insurance companies, as it should be. Hopefully, this encourages more agents to take IBC seriously so as not to spread misinformation.[21:30] “The problem is [that] this muddies the water. It makes it difficult for consumers to figure out well who do I actually listen to. Who is telling me the right information? How am I going to get a policy that lasts? How am I going to make sure this is set up properly, [and] how do I make sure it’s not just a flash-in-the-pan policy? So the insurance company is looking at all of this happening and recognizing if people are putting in too much premium dollars because they don’t know what they’re really doing, it’s not sustainable.”What Does This Mean for the Future of Infinite Banking?As far as you are concerned,
You have heard of the Seven Deadly Sins: pride, greed, lust, envy, gluttony, wrath, and sloth. Each is a natural human weakness that impedes happiness. In addition to these vices, however, there are economic sins as well. And they, too, wreak havoc on our lives and in society. They can seem intuitively compelling, yet they lead to waste, loss, and forgone prosperity. James Otteson, the John T. Ryan Professor of Business Ethics at the University of Notre Dame, is the author of Seven Deadly Economic Sins.https://www.youtube.com/watch?v=FxZ8_rxEbyIIn this thoughtful and compelling book, James Otteson tells the story of seven central economic fallacies. He explains why believing in these fallacies leads to mistakes and loss, and how to avoid costly errors. This, ultimately, enables us to live in peace and prosperity.Today, on the podcast, we discuss:What economists agree aboutWhy wealth creation is positive-sum, not zero-sumHow market economies have enabled more prosperity than any other system of economicsWhy business can be moral and honorableIf you want a conversation about economics, philosophy, and how nations prosper… tune in now!Table of contentsFrom Philosophy to EconomicsTeaching Business EthicsWho is James Otteson’s Seven Deadly Economic Sins For? Is Wealth a Zero Sum?The Morality of BusinessAbout James OttesonOtteson at Notre DameBook A Strategy CallFrom Philosophy to EconomicsIn the blink of an eye, James Otteson found his path changed from medicine to philosophy, thanks to a required college course.[7:40] “I thought if you went to college, you should either become a medical doctor or a lawyer. I thought those were the two things you became. So I was going to be a medical doctor, and I just happened to take a course that I was required to take, that was taught by a Classics professor… It led me into the great books program at Notre Dame.”He notes that when he was in grad school in Chicago, one of his philosophical heroes was David Hume. In particular, he wanted to write his thesis on Hume’s moral theory. His research eventually led him to Adam Smith and his book, The Theory of Moral Sentiments, which was a pivotal moment in Otteson’s career and became the new subject of his dissertation. What he discovered was that very few people had really written on or responded to Smith’s book, and Otteson viewed it as an untapped well. It was Smith's ideology on morals that sparked Otteson's initial interest in the economy and politics.Teaching Business EthicsAfter teaching courses on the history of economic thought for some time, Otteson was asked to teach a course on business ethics. When working on the course and how he would approach it, Otteson learned there was very little consensus on how a business ethics course ought to go. [11:41] “I thought it might be more interesting and maybe more productive, if instead of just looking at all the ways that business could go wrong, instead turning it around a little bit and asking: “Is there some kind of moral purpose that a life in business could actually serve?” By reframing the class slightly, he could have students think through whether it is possible to be fully engaged in a business and also be a virtuous person. Who is James Otteson’s Seven Deadly Economic Sins For? James Otteson’s research heavily influenced his latest book, Seven Deadly Economic Sins. The book was written with an intelligent audience in mind, specifically, those who are not economists yet are interested in working well within the existing economy. [14:10] “We all have our opinions about politics. But we also, many of us, have very strong opinions about economic matters even though, curiously, many of us have not studied economics.”So while everyone may have an opinion about something like minimum wage, not everyone has read the academic literature on the topic. And in fairness, as Otteson shares,
Why do top banks own billions of dollars of cash-value life insurance, if Dave Ramsey and Suze Orman say it's such a bad idea? Today, we're looking into bank financials at a little-known, highly desirable asset banks use as a Tier 1 Capital Asset to increase their financial strength. We're talking about bank-owned life insurance, or BOLI.https://www.youtube.com/watch?v=7gqAiiHQLXISo, if you want to fortify your finances and increase your stability through economic turbulence ... tune in now to find out about becoming your own banker with the Infinite Banking Concept!Table of contentsWhat is BOLI?What About COLI?Tier 1 CapitalHow Much Life Insurance Do Banks Own?What Can We Learn From BOLI?Resources for Learning About BOLIBook A Strategy CallWhat is BOLI?BOLI stands for Bank Owned Life Insurance, and while it’s widely available knowledge, it’s not widely understood. So why would banks want to own life insurance, and what does it do for those institutions? Banks really didn’t own life insurance until about 1994. In large part, banks take life insurance policies out on their key employees. This doesn’t just give the banks an additional place to store and grow capital securely. The death benefit also provides the banks with a means to train a replacement in the event of that employee’s death. In fact, even the cash value is useful in allowing the banks to prepare for a key employee to retire. This is how banks have “insurable interest” in their employees. But banks don’t just take out these policies on their employees, either. Banks have actually started group policies on the bank's customers who have loans with the bank. This means that if a customer died, the death benefit would pay for any outstanding loans. Banks are great at protecting their money. They see the value in having their money over-collateralized in order to protect it. [12:15] “If that is something that this institution is doing, why shouldn’t you be doing it in your own life?” What About COLI?Like bank-owned life insurance, there is also corporate-owned life insurance or COLI. The idea and usage of this type life insurance is the same. Companies benefit from having growth and liquidity in a life insurance policy, as well as the death benefit. Corporations like Walmart, Disney, Procter & Gamble, and many more rely on life insurance strategies. So if life insurance is such a “bad investment” as some financial talking heads would suggest, then why are banks and major corporations relying so heavily on life insurance in their financial strategies? Clearly, there must be some merit to it.Tier 1 Capital[14:37] “Banks have to have what’s called tier 1 capital… and up to 25 percent of their tier 1 capital, which has to be safe capital… is saved in the cash values of permanent life insurance. And that then is used to also insure the employees of the bank.”Tier 1 capital is the core of a bank’s capital that is held in reserves. It is also used to fund some of the bank’s business. This kind of capital must be safe and liquid. In fact, regulators require that banks have a certain amount of tier 1 capital available. This determines the strength of a bank, and that capital is useful for funding any losses the bank might have. In other words, tier 1 capital, like bank-owned life insurance, is directly related to the strength and stability of a bank. So if banks are using such a large portion of life insurance to provide a foundation for their institution, that same logic can apply on an individual level. It’s capital that is safe, liquid, and has growth that’s not correlated to the stock market, after all. How Much Life Insurance Do Banks Own?It might surprise you to know just how much life insurance banks have in their financial portfolios. The following are some statistics and numbers from some of the major banks. The numbers below represent how much cash value the banks have from their life ins...
So you’ve decided to buy a specially designed whole life insurance policy. You’re working with the right advisor, you have an excellently designed policy. But one day you think: How do I become the best banker I can and use my policy to its fullest potential? To get the most out of your IBC policies, you must follow Nelson Nash’s 5 Rules of IBC. Here to unpack these 5 principles for IBC is David Stearns. https://www.youtube.com/watch?v=v177xxW5c4MDavid Stearns is Nelson’s son-in-law and president of Infinite Banking Concepts, LLC. He is carrying on Nelson’s legacy both professionally and personally.If you want to learn from the best, this is as close to the source as you can get… so tune in now!Table of contentsContinuing Nelson Nash’s LegacyThe Evolution of the Nelson Nash InstituteHow to Find an IBC PractitionerDavid Stearns Shares The 5 Rules of IBCThink Long-RangeDon’t Be Afraid to CapitalizeDon’t Steal the PeasDon’t Do Business with BanksRe-think Your ThinkingBonus: Be Prepared for WindfallsAbout David StearnsBook A Strategy CallContinuing Nelson Nash’s LegacyNelson Nash was the innovative creator of the Infinite Banking Concept and the Author of Becoming Your Own Banker. Now, IBC and the Nelson Nash Institute continue to educate people about IBC and how life insurance can play an instrumental role in personal finance. The company is now headed by David Stearns, Nelson’s son-in-law, who we have the pleasure of speaking with today. David joins us today to share the 5 Rules of IBC that Nelson shared, and how he interprets them today.[22:30] “Whole life insurance is not glamorous–okay, number one. Number two, it’s hard work because you’ve got to make the effort to build your portfolio over the years.”The Evolution of the Nelson Nash InstituteNelson Nash saw IBC as a way for people to get their money out of Wall Street, and have greater safety, liquidity, and leverage. Nelson was so passionate about IBC that even at the age of 85 he was doing dozens of seminars a year, teaching people about IBC. These seminars were hosted by insurance agents and other financial professionals all over the country. They’d hire Nelson and fly him out, and he’d share his wealth of knowledge with whoever was in the room. But, according to David, no one ever really asked the question: what are people doing with this information? Because the reality was, people were applying the information to the wrong life insurance products. Or, agents were sending non-selling associates to listen to the information. There were just too many instances of the IBC message being watered down or twisted into something it wasn’t. But, they were still using Nelson’s name.That’s when David Stearns and a few others got together and decided that it would be critical to the future of IBC to implement a standard. That standard would become what is the Nelson Nash Institute and the IBC Practitioner Program, which was meant to hold advisors accountable to the information Nelson offered. This would ensure that advisors couldn’t co-opt Nelson’s message, nor morph it into something that it isn’t meant to be. How to Find an IBC PractitionerIf you are ever interested to know whether or not you’re working with or connecting with an IBC practitioner, there’s a database you can check. The IBC Practitioner database is extremely useful in verifying who has been through the training and whether they are adhering to the rules and standards of IBC. The benefit of working with someone who is in the program or completed it is that you can be sure of their character. An IBC Practitioner will have all the values that Nelson Nash and IBC have shared and cultivated. Those in the program also get the benefit of working with other Practitioners to boost their knowledge and skills. This ensures that the training is solid and standardized. The fundamentals of IBC are critical to the success of an agent and their client...
Want tax-free retirement income? Tax-free money in retirement sounds amazing… at first glance.https://www.youtube.com/watch?v=mylXCXThFl0But before you dive into this strategy, there are three things you need to know about why “Tax-Free Retirement” is a really bad idea.To find out exactly why you shouldn’t set up your financial game plan for tax-free retirement… tune in now!Table of contentsSetting FrameworksWhat is Tax-Free Retirement?“Don’t Let the Tax Tail Wag the Dog”Retirement is a Concept that Needs FixingHow to Change RetirementSo Why Shouldn’t You Do Tax-Free Retirement?Why Tax-Free Income is Not the Best First SolutionLife Insurance is InsuranceBook A Strategy CallSetting FrameworksWhen you’re presented with a certain lens or framework, it’s important to step back and consider: Where is the information coming from?Who does this benefit? What are the other options?These questions can go a long way in helping you determine whether a strategy is a good fit for you, whether it has merit, and how you should approach it. The idea of tax-free retirement using whole life insurance is popular. Just the name alone makes it sound amazing. So why wouldn’t someone want to implement it? Keeping the above questions in mind, we’re going to unpack the nuances of this approach so that you can use that information to better your strategy.What is Tax-Free Retirement?The general idea of tax-free retirement is that you have set up a whole life insurance policy for maximum cash value growth that you can use for retirement income. The strategy suggests that after maximally funding a policy, you can choose to retire and use that cash value for retirement income. You use a certain formula to determine how much you can withdraw each year over a certain timeframe (instead of borrowing against it) without creating a taxable event. The premise is that by saving into a whole life insurance policy, you can pull an income from your policy without paying taxes. And while this is true, there are certain disadvantages that people don’t often consider or discuss. “Don’t Let the Tax Tail Wag the Dog”This concept comes from Garrett Gunderson, author of Killing Sacred Cows. [14:10] “He talks about how you cannot ever make all of your financial decisions on the basis of, ‘How do I pay the least amount of tax?’ If you’re just looking at taxes, that’s a lens being put in front of your eye [saying], ‘Here’s the most important thing.’ Really, there’s not one most important thing; there’s a lot of factors that you need to consider.”When you only make financial decisions out of the fear of paying taxes, you’re acting from a place of scarcity. The scarcity mindset doesn’t serve you, because it prevents you from seeing other options or strategies that may be even better for you, depending on the purpose of your dollars.If you want to leave a large legacy to your children, but you choose a “tax-free retirement” strategy out of fear, you run the risk of disinheriting your children. This, of course, is not the outcome you want if you’re aiming for a legacy. So it’s important not to let fear dictate the lens through which you take financial action.Retirement is a Concept that Needs FixingLet’s consider the typical retirement paradigm. Generally, you work from about age 20 or so until you’re somewhere between 60 and 70. In all of those working years, you work as hard as possible to make as much as possible. And hopefully, you save as much as possible. Then, when you’re ready to retire, you stop working completely and live off of what you’ve saved. You probably intend to continue living life at the same level of comfort and quality, so you take about the same income that you made when you had a job. Unfortunately, many people only save about 10-20% of their income. But, they still want to live at 100% of what they’re used to. This means retirees are going through their money...
How does whole life insurance work out over the years? Today, we're looking at a real-world case study of someone with basic whole life insurance policies that have become very productive and efficient assets when held and used long-term. https://www.youtube.com/watch?v=D0tsSgckpTYWe'll discuss how policies for self, spouse, young kids, and future grandchildren work together. In particular, we'll see how the newest policies in Tom's family banking system have turned a corner. Now, they're accumulating more cash value than the cost of annual premiums. He then used these dollars to invest in cash-flowing assets that help fund the policies. We'll explore how you can establish policies for future grandkids to begin legacy planning. You'll learn how to use life insurance as a foundational piece of your kid's and grandkids' financial lives.If you want to see how Infinite Banking can work for your family ... tune in now!Table of contentsHow Tom Found Infinite BankingFirst Thoughts On Opening a Life Insurance PolicyHow Tom Feels About His Life Insurance Policy NowThe Power of Having Policies on Your ChildrenSelf-Sustaining PoliciesTom’s Family Banking SystemConnect with Tom SuvansriAbout Tom SuvansriBook A Strategy CallHow Tom Found Infinite Banking[5:45] “The concept of infinite banking wasn’t talked about [when I started my whole life policy]...it was just a long-term savings vehicle that protects you from these bad things that could happen.”Tom shares that when he started his policy, he didn't even know about leveraging cash value. No one was talking about it. He was just aware that it was a suitable tool for saving money and protecting income. The knowledge about infinite banking came later. Fortunately, Tom had the experience of those before him to draw on. His father had some universal life insurance that imploded, so they both knew to stay away from that structure of life insurance in the future.[6:48] “It’s just one of those sad stories, but you know, that was something that stuck with me. And so we got into talking around just a permanent whole life policy, right? From a mutual insurance company. Which, I didn’t understand what that meant at the time.”First Thoughts On Opening a Life Insurance Policy[12:46] “I think things through pretty deeply, and it took me a while to even get to there—to accept and get a policy. And I did initially, as I got into the first year or two when there was no cash, [feel skeptical]. I saw that, and it did sort of strike me as, ‘Did I do the right thing?’ I was a little concerned.”Tom opened this policy in 2003 and on top of still having his policy and benefitting from it, he now helps other people to implement Infinite Banking strategies. What helped him through these early years was to remind himself that it was a long-term product and that his results would not be overnight. There’s a major mental hurdle to overcome because so many life decisions are short-term. We have to think and decide quickly, and expect to see quick results. But life insurance is a different beast. It’s something that takes time, and while you’re in the early stages it can be difficult to be patient. However, five to ten years down the line, you’ll be thanking your past self. How Tom Feels About His Life Insurance Policy Now[14:25] “It’s so funny, I was kind of joking with my wife about [our policies]. Because every time I get an annual statement come through saying your premium is due, some people think of it like a bill. I’ll tell you, I give it a hug because I know what it’s done for us and our families. It’s secured so much for us over these years, and what it will do in the future—like I cannot wait to contribute to it.”Another added benefit of having a policy for 19 years is that as inflation impacts the value of a dollar, premiums actually feel like less. Premium payments are fixed payments, so inflation actually has the reverse effect on...
Are you learning all you can about Infinite Banking ... and wondering if you're ready for Infinite Banking?https://www.youtube.com/watch?v=3pygSVCXpYIToday, we'll talk about what's probably going on for you as you make this decision. We'll discuss:The problems you're looking to solveThe mindset you needHow to know if you're not ready yetHow to go from interested to securing your first policySo if you want to know if you're ready for Infinite Banking... tune in now!Table of contentsIs Buying Life Insurance a Big Life Decision?Is Life Insurance a Good Investment?How to Make Good DecisionsThe Advantages of Infinite BankingThe Right Mindset to Be Ready for Infinite BankingYou’re Not Ready for Infinite Banking If…Book A Strategy CallIs Buying Life Insurance a Big Life Decision?[4:05] “I would say this is a medium life decision. And the reason I say that is, obviously, there’s nothing more important than your family.”By this, Bruce means that choices that affect your family and your income are probably “bigger” life decisions. However, buying life insurance isn’t a small decision by any means. Having a death benefit in place gives you the freedom to live your life a little bit differently. It’s like car insurance. You’re going to drive much differently if you don’t have car insurance. So, it’s generally a good idea to have it. Life insurance helps you to live life without reservations. It also acts as a great place to store and build your cash reserves so you can enjoy your money. [4:45] “You’re not living your life to the maximum unless you know that your lifetime income is protected for your family.”Is Life Insurance a Good Investment?[7:20] “If you’re looking at this as an investment, it’s not a good investment. Because the internal rate of return on [whole life insurance] is not going to be great when you consider external rates of return on [actual investments].”The thing is, life insurance isn’t an investment, and we encourage you not to think of it like one. On top of being an insurance product, it’s also an efficient savings tool—that’s it. And when you apply the principles of the Infinite Banking Concept, you create a pool of capital that works harder than a typical bank account. Cash value of life insurance is not an investment. It’s not going to make you a high rate of return. However, it can protect your wealth, your family, and make it easier for you to invest in cash-flowing investments down the line. How to Make Good DecisionsLife insurance can be a big decision. You must consider the costs of having insurance, the costs of not having insurance, and a dozen other small decisions in between to find the right fit for you and your family. It’s not a simple decision to be made overnight. To make the best decision possible, it’s wise to consider the logical aspect AND the emotional aspect. The logistics are all about what type of policy, how much you’re going to fund the policy, if it’s a good fit for your family, how you’re going to make payments, etc. You also want to compare it to other places you can store your cash, and ask: is this the best place to store it? Thinking from a logical standpoint is going to help you decide if whole life insurance is something you can commit to fully. On the other hand, the emotional side is determining how it’s going to help or hinder your peace of mind, whether it will make you feel more secure, etc. You want to feel good about the decision you’re making emotionally too. Once you’ve weighed these details, you should come to a decision with full commitment. This is a lifelong decision if you choose to buy whole life insurance. And while you might not pay on it for your whole life, depending on how it’s structured, it’s something you’re going to keep using forever. Don’t go into the decision with a contingency plan, or you’re not truly making a full commitment.
Want to be more successful in your life and business, gain more recognition and respect, create more impact, accomplish your goals, reach financial targets, increase your income, and raise happy kids? Then it’s time you found a secret hidden in the timeless Jewish practice of Mussar, as shared by Ruchi Koval.https://www.youtube.com/watch?v=BQcMsQdidDQIt’s not where we usually start. We look for strategies, scripts, tools, and tricks to beat the odds and get there faster. But today, motivational speaker, coach, and author of Soul Construction, Ruchi Koval shares the real keys to success that are found much deeper... by developing character. So, if you want to become financially successful, then be prepared for a challenging, growing conversation that will help you have the right relationship with money… tune in now!Table of contentsWhat is Mussar?Why Does Character Development Matter?Money Doesn’t Define YouCharacter Development is a Lifelong ProcessConnect with Ruchi Koval About Ruchi KovalBook A Strategy CallWhat is Mussar?[5:12] “I was basically raised on the precepts of Mussar, from the time I was little enough to speak. So Musar is a concept of ethical character development… Throughout the generations, people have been asking themselves, ‘How can we make faith relevant to the next generation?’ One of the answers that came forth in the 1800s was this concept of Mussar, which had been in existence, but kind of latent—that a primary path to spirituality could be focusing on our character traits.”Before this, there were other popular schools of thought about how to achieve spirituality in the Jewish faith. It was Rabbi Yisroel Salanter who really brought this thinking to the forefront and inspired the Mussar movement. The Rabbi who founded the school that Ruchi attended was the son of a Mussar master.The character traits in question include things such as patience, kindness, joy, and humility. Ruchi also highlights that it’s also important to work on controlling your anger or allowing people to have their way. [6:38] “That was as Jewish as charity and traveling to Israel and, you know, observing the Sabbath.”Why Does Character Development Matter?[8:43] “I believe that ancient Jewish wisdom is universal. That means that it can apply to anyone. That’s why this book that I wrote—Soul Construction—is not just targeted for Jews. It’s targeted for anybody, because I do believe that it’s universal wisdom. The point of Mussar is really self-transformation, but it definitely affects everybody around us.”Part of Mussar that Ruchi shares is to have your character traits in balance. Anything to an extreme, on either end of the spectrum, is unhealthy. For example, you must have generosity in balance. You want to tithe and be generous, but you also want to keep some of that money so you can do more with it and better your family. Ambition, too, can be a good thing, unless taken too far. Then, it becomes greed. Keeping your character traits in balance not only allows you to be more spiritual, but it can also help you in your pursuit of certain things, like abundance.[11:55] “If I can get my character traits in balance, then my pursuit of money could be something that is fulfilling for me and my family, and will create harmony and not discord. Money Doesn’t Define You[17:10] “So ancient Jewish wisdom actually teaches that money doesn’t define you… How much you have of it doesn’t define you at all.”In fact, Judaism recognizes wealth as a blessing from God. So earning a certain dollar amount cannot define you. It’s your attitude toward what you have and what you choose to do with it that defines you. If you’re generous, humble, and grateful, that speaks volumes no matter your income. It also speaks volumes if you’re miserly, snobbish, and conceited. If you’re concerned about having entitled children because you’re leaving an inheritance,
Have you heard about Infinite Banking, and you want to learn more? Or maybe you’re already using Infinite Banking, but would like to explain it better to your family and friends. In past installments of the series, we've discussed how IBC works, and what it is. Today, we're unpacking what makes infinite banking "infinite". https://youtu.be/VgA7PaXvvF0So if you're ready to learn how to increase your opportunities and create wealth that lasts beyond your lifetime... tune in now.Table of contentsThe Multigenerational Benefit of Infinite BankingHow to Create a Succession Plan for Infinite BankingWhat Makes Infinite Banking Infinite?Examples of the Infinite PossibilitiesVelocity of MoneyInternal and External ReturnsBook A Strategy CallThe Multigenerational Benefit of Infinite BankingThere are many ways one might consider the Infinite Banking Concept to be “infinite.” One of these ways is the multigenerational capacity of infinite banking. By establishing a liquid savings vehicle like whole life insurance, you’re creating a system of wealth that not only can be leveraged for investments and opportunities but can be passed on to the next generation via the death benefit. That money can then be reinserted into a new life insurance policy that creates new opportunities for your children. And by extension, it creates opportunities for their children. As long as each generation is properly prepared to receive your legacy, and has the required knowledge to be a good steward of that wealth, it can last for generations. This is a key reason that having a succession plan is critical. That way, your heirs are prepared to continue the family legacy that you’ve established. There should be some guidelines and procedures for how the wealth transfer is handled, and how the family can best maintain the wealth. How to Create a Succession Plan for Infinite Banking[9:08] “The first thing is, you have to communicate within your family. The second thing is you need to work with an organization that has a succession plan that’s going to continue these thoughts within the agency itself so that it can become infinite along the way.”The goal of a truly infinite IBC strategy is to involve your family. This means starting young: educating your children, involving them in your family culture, creating family values, and more can help your children get a sense of your family mission. By involving your children each step of the way, you’re including them in creating this legacy. Inclusion can inspire your children to take responsibility for their role in the family banking system. It also enables them to be good stewards of wealth in the future. This is further aided by having a support system of financial experts who can be your strategic partners. That way, you can create more wealth and freedom. This is how you keep a family banking system alive. What Makes Infinite Banking Infinite?To understand the full scope of this conversation, it’s important to get clarity on why infinite banking has its name. And, why infinite banking is such an excellent strategy for multigenerational wealth. One key is certainty, as Les McGuire discusses in his article, The Economic Value of Certainty. Whole life insurance is a product that creates certainty because it protects your wealth even in death. This certainty gives you the security and peace of mind to make decisions you might not make in scarcity mode. And being able to operate from this mindset makes the possibilities quite literally infinite. Examples of the Infinite PossibilitiesUsing an IBC strategy with whole life insurance allows you to create a pool of liquid cash with certainty. That certainty is locked in by a few different variables:The death benefit gives you the certainty that your family is protected, your legacy can continue, and the family bank can be replenishedThe cash value is not correlated to the stock market,
For an intended multigenerational family business to last past the first generation, the family must become a successful team.https://www.youtube.com/watch?v=CuQR8NBc2JYProfessor, organizational consultant, family therapist, and family business consultant Dr. Dennis Jaffe joins us today. He has helped families overcome challenges that impede successfully transferring businesses, wealth, value, commitments, and legacies across generations.So, if you want to create a multigenerational family enterprise… tune in now!Table of contentsWhy Should Families Think Multi-Generationally?What Can History Teach Us About the Multigenerational Family Business?When Do You Bring Kids Into the Family Business?The Challenge of First-Generation WealthWhat is the Best Way to Create a Multigenerational Family Business?About Dr. Dennis JaffeBook A Strategy CallWhy Should Families Think Multi-Generationally?[3:40] “There’s no ‘should’ about it. This is what families are concerned about—they’ve created wealth, been successful, they’ve providing for their family, they’re creating more wealth than they can use on a day-to-day basis, and they have young people growing up. And they begin to say, ‘Well, what’s going to be my legacy?’ And they begin to ask the question—not how do I get more wealth—-but what is the purpose of our wealth? What do we want to do with it?”Dr. Jaffe has noticed that as families build wealth, they think more seriously about what that wealth will do beyond them. And this consideration is critical because it’s how wealth lasts for generations. You can’t simply build up wealth, you also have to create systems, educate your kids and grandkids, and pass on your values so that the generations beyond you will know how to be good stewards of your money. What Can History Teach Us About the Multigenerational Family Business?Dr. Dennis Jaffe has been in the field of family business and wealth since the early 80s. And over time, this industry has really evolved to include family meetings, family constitutions, and much more beyond just getting advice from a financial advisor. What Dr. Jaffe has done is interview and compile information from wealthy and successful families. A successful family, as Dr. Jaffe defines it, is a family that has kept and maintained its wealth for at least three generations. After all, these are the families who have done a good job of educating the next generation on how to build and keep wealth. Successful families are also families who spend time together and have a sense of connection. [12:10] “What I found is that these hundred-year families had a great sense of their legacy and history. They could look back for the fifth generation and say, ‘Well, you know, grandpa did this.’ Or, ‘One of the things that grandpa did that really made a difference for us is this…’”This research proves helpful because it doesn’t suggest a singular path to wealth. Instead, it illustrates many paths and options for building and sustaining wealth. And behind it all is a sense of family history—that each generation can learn from the ones before.When Do You Bring Kids Into the Family Business?As important as it is to look to the past for guidance on sustaining wealth, it’s just as important to keep tabs on the future. After all, your children and your children’s children are the future of your legacy. They’re the ones who will carry the torch, so it’s important to prepare them to inherit the family’s wealth and continue that legacy. [19:11] “So, one of the first things that I learned is that the older generation has to really listen to the next generation because they have a very unclear and unrealistic idea about the future. Because they see it from their own eyes and their own experience. They don't really understand the experience of their kids, the people that their kids marry, and their kid’s kids. And all those people have to have a voice,
Have you heard about Nelson Nash, Infinite Banking, and Becoming Your Own Banker ... and want to learn more? Or maybe you’re already using Infinite Banking but would like to be able to explain it better to your spouse, parents, children, business partner, or friends.
https://www.youtube.com/watch?v=ZoKCkrLgSMs
Today, we're unpacking the fundamentals of the Infinite Banking Concept and discussing what Infinite Banking ISN'T.
Table of contentsInfinite Banking is NOT: MagicInfinite Banking IS: A Long-Term Habit, Skill, and SystemThe Importance of Long-Term ThinkingInfinite Banking is NOT: A Get Rich Quick SchemeHow Should You Split Your Premium?Can You Pay Premiums with Cash Value?Book A Strategy Call
Infinite Banking is NOT: Magic
Sometimes, what gets lost in translation when talking about IBC is HOW it works. While it is a powerful tool when structured properly, it is definitely not magic. Unfortunately, the way some people talk about IBC can make it seem that way, which is a disservice to how well it works from a logical and contractual standpoint.
Life insurance is a contract. Whole life insurance, in particular, tends to be a very beneficial contract. Since it’s permanent insurance, it offers a lot of living benefits. The loan provision, for example, is one such benefit. However, the loan provision is valuable because of the financial principles you can apply, NOT because you’re getting “free money,” nor even necessarily “tax-free” money.
In reality, the loan provision works like any other loan. It just has the added advantage of flexibility, because it’s 100% collateralized by your cash value. Every other seemingly “magic” or “too good to be true” feature of life insurance has a similar explanation. It’s a product that is highly efficient and works well, but it has checks and balances like any other financial product.
[6:50] “This is what Nelson [Nash] knew: that human conditions get in the way… If you don’t have good money habits to begin with… you’re not going to be a good saver either. And that is what the Infinite Banking system is. It’s a place to store or save money. It’s not an investment.”
Infinite Banking IS: A Long-Term Habit, Skill, and System
In reality, Infinite Banking is a long-term strategy to employ by way of whole life insurance. To put that in different terms, whole life insurance is a savings vehicle. Infinite Banking is the strategy for saving and using your money.
The reason IBC works so well is that it rewards good habits. The first habit is one of saving: by paying premiums, you increase your equity in your insurance policy. This equity is called cash value.
The next good habit is paying down your debt. When you leverage your policy to make a purchase, you benefit by making regular loan payments. You free up capital to use, and you can even apply some of that loan payment as PUAs that increase your cash value. All the while, you continue earning interest and dividends because you’re using a system that puts you in control.
Your whole life insurance policy is the place you put your cash until you have somewhere to deploy it. It’s a system that makes your savings more efficient, but you have to have those good habits already. That way, you can access and use your capital.
The Importance of Long-Term Thinking
The tether that ties the entire system together is long-term thinking. To truly reap the benefits of an IBC policy, you have to set your sites on the long game. That means considering how your actions today can affect your future self in 30 to 40 years or more. Saving, paying loans, and creating a wealth system can all have positive impacts. Not doing those things can leave major holes in your personal economy. And more importantly, if you don’t adopt long-term thinking in your use of an IBC policy, you may struggle to see the results you want.
The policy you have can only work as well as you are able to manage it.
Do you want answers from the Bible about making more money and prospering financially? The Bible has a lot to teach us about money.
https://www.youtube.com/watch?v=Nc1ZUD7_VCA
Today, Rabbi Daniel Lapin is back to discuss Biblical principles. For example, he'll discuss principles that you can apply to increase your revenue. He also shares how the Bible guides you to prosperity.
So, if you want to deepen your faith, improve your finances, and build your financial life on a solid foundation… tune in now!
Table of contentsWhy is Biblical Financial Success a Passion for Rabbi Lapin? The Bible and MoneyAncient Jewish Wisdom: The Bible and MoneyIs it Bad to Make Money?What Ancient Jewish Wisdom Reveals About HumanityBiblical Wisdom to Increase RevenueConnect with Rabbi LapinAbout Rabbi Daniel LapinView Our Other Conversations with Rabbi LapinBook A Strategy Call
Why is Biblical Financial Success a Passion for Rabbi Lapin?
[3:16] “First of all, it’s satisfying because it’s complex. And what I mean by that is, life is complex. Any attempt to solve the problems of life with a slogan or keyword or simple solution is doomed to failure. And people regularly ask me, you know, what is the secret to money?”
In most cases, when people ask this question of Rabbi Lapin, they’re looking for a simple solution. Yet, as he points out, it’s not a simple subject and cannot be reduced to a simple answer. This led the Rabbi to dig deeper and become more interested in the ancient financial wisdom within the Bible.
[5:47] “I’m afraid the Bible is just like that. If you’re going to try to solve this in a simplistic way and find a verse here or a verse there that helps you with finances, you’re going to be doomed. Because anybody who knows his way around the Bible will find a verse that says one thing and then another verse that apparently says the opposite.”
To unlock wisdom from the Bible requires deep study to understand the context. A verse here or there is no good without the knowledge of why it exists in the first place.
The Bible and Money
[6:35] “When you got right down to it, the question I was always asked was, ‘Why are Jews so disproportionately good with money?’ And it turned out to be a very worthwhile field of study that no one had really done.”
Since there was little accessible information on this topic, Rabbi Lapin embraced the subject. Over the course of his work, he’s studied and identified the connections between the holy texts and cultural behaviors. Additionally, he's studied the history surrounding Judaism, and how that applies to money.
Through his books, he’s helped to make this information more accessible to people in and outside the faith.
Ancient Jewish Wisdom: The Bible and Money
[17:00] “Heaven and Earth are two separate categories of information. One is information that is earthly, it’s materialistic. Another form of information is ephemeral…You can’t touch it… It’s something, again, that Jewish people have always understood, to their credit and to their benefit. Which is that there is a form of knowledge which is earthly. And this you can roughly call science, technology, discovery, and medicine. In all of these things, every successive generation knows more than the one before it… However, when we come to the things that never change, well, on those, we actually seem to know less as time goes by.”
Those things that never change, as they would happen, can be sourced from the Bible just as readily as anywhere else. One of Rabbi Lapin’s examples is the relationship of parent to child, and how teenage children ignore their parent’s wisdom, only for adult children to understand and appreciate their parent’s wisdom. This has never changed, yet the Rabbi asserts there’s more value in studying something like this from ancient texts than modern ones. Because that ancient wisdom gets it right.
[22:30 “The beauty of ancient Jewish wisdom, in my experience,
Have you heard about Nelson Nash Infinite Banking, and Becoming Your Own Banker and you want to learn more? Or maybe you’re already using the Infinite Banking concept, but would like to explain it better to your spouse, your parents, your children, your business partner, or friends.
https://www.youtube.com/watch?v=0czmA6OBAcw
Today, we're unpacking the fundamentals of the Infinite Banking Concept and the way it benefits you NOW and LATER. In this episode, you'll learn some of the options you have by creating an Infinite Banking policy... tune in now!
Table of contentsWhat is the Danger of Considering Only Immediate Cash Value and Ignoring the Future Death Benefit, Dividends, and Cash Value?What Kinds of Large Ticket Expenses Can I Use Infinite Banking For?Should I Put My Whole Paycheck into Whole Life Insurance?What Are the Advantages of Using the Infinite Banking Concept to Pay for College?What Are the Pros and Cons of Insuring Your Kids?How Does Infinite Banking Save Me Taxes?How Can I Use the Infinite Banking Concept to Invest in Real Estate and Earn Better Returns?How Can I Use Infinite Banking to Increase My Retirement Income?How Can I Use Infinite Banking for Generational Wealth?What Can I Do Now to Get a Policy My Future Self Will Thank Me For?Book A Strategy Call
What is the danger of considering only immediate cash value and ignoring the future death benefit, dividends, and cash value? Infinite banking concept life insurance policies are great for warehousing wealth, but it’s important to find a balance between early cash value, long-term potential, and death benefit. While early cash value is going to be of use in the short term, the death benefit is the backbone of the insurance policy. It acts as income protection for your family and helps you build a generational legacy if you’re playing the long game.
What is the Danger of Considering Only Immediate Cash Value and Ignoring the Future Death Benefit, Dividends, and Cash Value?
Working with an experienced IBC (Infinite Banking Concept) practitioner to not just create good liquidity in the early cash value, but also balance that with the long-term benefits for the most efficient policy possible is wise. This may even mean filling in your insurance “gaps” with term insurance (usually convertible) to reach your full Human Life Value. That way, you always have the right protection in place.
It’s sometimes difficult to think about what you’re going to value thirty years or more in the future, but the more you can anticipate those desires now, the better position you put yourself in for the future. You may not care about having your full Human Life Value in your early 20s, but what about when your family grows?
[8:47] “You have to step back and look at your own life and see the balance not only now as a younger person or a middle-aged person or an old person.”
[12:52] “The people who make the best decisions are the ones who can delay gratification, who can say no, I’m not going to eat the one marshmallow today because I get two tomorrow.”
What Kinds of Large Ticket Expenses Can I Use Infinite Banking For?
The benefit of an infinite banking policy is that you have the freedom to use your cash value on anything you wish. So the simple answer is anything. However, we often recommend using your cash value to finance things you wouldn’t normally use your checking account for. A car, a major vacation, an investment, or some other “big ticket” purchase is more suited to a loan.
There’s no cut-and-dry answer because it’s going to depend entirely on your personal situation. For example, if you can make a big-ticket purchase in cash, but doing so would prevent you from paying your PUAs, you might be better off borrowing against your policy. That way, you can continue to fund your PUAs at a maximum.
The reason is that paying those PUAs will buy you additional death benefit, and therefore increase your available cash value.
Reverse mortgages are becoming more mainstream. But to benefit from using one, you need to understand how to incorporate it into a responsible retirement income plan. So exactly what is a reverse mortgage? What role should it fill in your retirement planning? And should you open a reverse mortgage early or as a last resort?
https://www.youtube.com/watch?v=fph0k20tHXc
To answer your questions, we’ve invited back a special guest, Dr. Wade Pfau. Dr. Pfau is the author of Reverse Mortgages: How to Use Reverse Mortgages to Secure Your Retirement, and host of Retirement Researcher. He shares his significant work on retirement income planning to shed some light on reverse mortgages.
To learn how to get the most retirement income with reverse mortgages, so you can enjoy your money and your life the most… tune in now!
Table of contentsWhy Retirement Income?What is a Reverse Mortgage?Different Strategies for Borrowing When Should You Use a Reverse Mortgage?The Right MindsetAre Reverse Mortgages Expensive?Connect with Dr. Wade PfauAbout Dr. Wade PfauBook A Strategy Call
Why Retirement Income?
[4:50] “I was interested in retirement income planning, it really just evolved from research I did in grad school… There was a proposal in the early 2000s to privatize part of Social Security, and I was investigating how that might work out in practice, and that's really translated into what I do today in terms of personal retirement planning. But then, in that regard, I really built a career around this insight that is not fully understood yet in the general population, which is when you're retired, investment risk changes. When you're spending from assets, you're more exposed to investment volatility.”
This volatility in retirement means opens retirees up to a wide variety of income strategies that can increase the longevity of assets and income. However, many typical financial talking heads consider these strategies unconventional, and many people don’t know how to use them properly.
One of those misunderstood assets is home equity, and subsequently, reverse mortgages. However, when used strategically, these elements can really make your retirement income far more efficient.
What is a Reverse Mortgage?
A reverse mortgage, as Dr. Pfau shares, is when you borrow money from the home and don’t have to pay it back until the end of the loan. About 90 percent of reverse mortgages are represented by the Federal program of Home Equity Conversion Mortgages (HECM). They issued the first HECMs in the late 80s, and the government is consistently working to ensure that the program is operating as well as it can.
The amount you can borrow from your home depends on your age and the current interest rates, and reverse mortgages actually benefit from low interest rates. A HECM gives you access to a percentage of your appraised home value.
What the reverse mortgage actually does is give you a line of credit to tap into. This line of credit increases over time. And unlike a regular home equity line of credit, a HECM cannot be frozen or canceled. You have access to it for as long as you choose to remain living in the home. Once you move out of the home, the loan balance becomes due.
The benefit of a reverse mortgage is that it gives you more options for spending. That way, you don’t have to draw from certain assets during bad times. For example, if most of your retirement income is coming from equities, you don’t want to pull that income out while the market is down. A reverse mortgage is just one way to create that flexibility.
Different Strategies for Borrowing
The strategy Dr. Pfau proposes acts more like a volatility buffer by giving you discretionary power to pull out income as you see fit. However, there are other reverse mortgage strategies. For example, there are reverse mortgage options to pull out a fixed monthly income.
While this monthly income doesn’t help with a specific sequence of return...
Are you wondering what is a life insurance policy loan, and how can it help you? Or maybe you’re already using Infinite Banking, but would like to explain it better to your spouse, your parents, your children, business partner, or friends.
https://www.youtube.com/watch?v=FrjVeMXW8is
Today, we're unpacking the truth about the Infinite Banking Concept and the power of policy loans. Policy loans are part of what makes the infinite banking strategy work so well. We're answering the most common questions we hear about policy loans, so you can be clear on exactly what they are and how they work. If you're ready to learn more about policy loans and how you can implement them in your own life... tune in now!
Table of contentsWhat is Financing?How Does Infinite Banking Provide a Solution for Financing?How Does Infinite Banking Give You Better Growth and Accessibility?How Does Infinite Banking Compare to Other Strategies for Storing Cash?What is a Life Insurance Policy Loan?How Easy is it to Get a Policy Loan?Do I Have to Qualify for a Policy Loan?What Does a Policy Loan Use as Collateral?How Does a Policy Loan Impact My Cash Value and Death Benefit?Whose Money Am I Using in a Policy Loan?Why is it a Good Deal for the Life Insurance Company to Give You a Policy Loan?How Does My Money Continue to Compound Uninterrupted with a Policy Loan?How Do Policy Loans Give Me More Control and Flexibility?Book A Strategy Call
What is a Life Insurance Policy Loan? A policy loan is money that you are borrowing from the life insurance company, using your cash value as collateral. The life insurance company is contractually obligated to allow you access without qualification to a policy loan. Then, they offer you a loan with an interest rate, which you can pay back at your own discretion (on your own timeline).
What is Financing?
While people typically think of financing as the process of borrowing money to fund something, we know that you finance everything you buy. The reason is that you’re either paying interest through a loan or line of credit, or you’re passing it up because you’re paying in cash (and losing the money you could have earned elsewhere).
[2:50] “We finance everything in our lives, and people don’t get that because people say, ‘I don’t have any debt, I just pay for everything in cash.’ Well, Nelson Nash made me realize that paying cash is still financing because you’re giving up the opportunity to make money on your cash that you actually pay. So you’re always financing. You’re either paying interest, or you’re giving up the ability to earn interest”
How Does Infinite Banking Provide a Solution for Financing?
Infinite banking provides the solution to the financing problem by allowing you to create a pool of money that allows you to finance anything you want without passing up interest. So while you may pay interest on a policy loan, you can also earn interest, while also potentially earning cash flow through your investments. Even without investments, though, infinite banking gives you a way to finance your life as efficiently as possible.
The reason infinite banking is so efficient is that, with a dividend-paying whole life insurance policy, you can save money, grow money, and use that money without interrupting your compounding interest. And you can do this thanks to the policy loan provision.
How Does Infinite Banking Give You Better Growth and Accessibility?
Infinite banking puts you in a position where you’re not only storing and growing capital in the policy, but you also have a contractual guarantee to access and use that cash through a policy loan. The policy loan may seem like an unnecessary hurdle to jump through, but by using other people's money (the insurance company's money), you can keep your account earning interest and dividends at its full potential. Not only is this incredibly efficient, but it also provides more certainty and stability than either a bank or the stock...
This week, we had the pleasure of joining our Canadian friends on the Wealth Without Bay Street podcast. In this episode we talk about our business, and how we can apply the principles of infinite banking in Canada.
If you've ever wondered how The Money Advantage got its start, how our perspective has shifted on life insurance, and the importance of implementing what you learn... tune in now!
Table of contentsHow The Money Advantage StartedTransformational LearningHow the Message Gains TractionGetting Back to the FundamentalsDealing with NegativityHow a Near-Death Experience Elevated Our Understanding of the Death BenefitRe-Thinking the Value of a LegacyBook A Strategy Call
How The Money Advantage Started
The Money Advantage Podcast began after Lucas and I met Bruce and his team at an event they put on many years ago. Bruce’s team had been weary of the industry, which seemed only to be interested in pushing products over personal solutions. Yet, Bruce and the team knew there were so many good, well-meaning advisors in the industry.
[3:05] Bruce: “We decided we were going to start something called the Freedom Advisor event, and we were going to open this up to people across the nation who wanted to do things in a collaborative way to help make the industry better.”
Lucas and I met Bruce through this event after becoming familiar with Nelson Nash and the Infinite Banking Concept. The event put us with many like-minded people and was an incredible opportunity. Months later, after putting out our own content, the idea came to us to reach out to Bruce and create video content with him. Now, over four years later, we continue to produce educational content and love every moment.
Transformational Learning
[9:26] Rachel: "I was thinking the other day how much more transformational it is to engage with material rather than just hear someone else talk about it. And I think that this is really important, even for listeners to the show.”
Engaging with information and stories helps you to relate it to your real life. You can choose to read or listen to something, and then set it aside, and that’s a fine thing to do. But when you take that information and attempt to make sense of it in the context of your world, you have the opportunity for transformational learning.
If you want to create a real transformation in your life and your finances, you have to take watching, listening, and reading into thinking, doing, and applying. With the infinite banking concept, application is key. After all, the title of Nelson’s book is “Becoming Your Own Banker,” which hints at a lifelong dedication to learning and implementing these strategies.
[24:50] Rachel: “I’m just so amazed that [Nelson Nash] did say [infinite banking is] a concept. It’s a way of thinking. It’s a framework, if you will, to be able to fit in so many of the challenges that people face financially and find a way to put control in someone’s hands. For the person who is willing to say, ‘I am responsible for my own financial future, yes, that’s me. I will choose to become educated, I’ll choose to make the right choices, and I’m going to choose not to just rely on someone else to tell me what to do.’”
How the Message Gains Traction
[30:45] Rachel: “I think the challenge is that because information is so easy to come by, the people who are best at presenting that little piece of information, in the most compelling way, and seeming the most confident about it, and putting the most money behind the advertising dollars to make that more visible to others get heard. And then the consumer sees that and thinks it’s the most popular so it must be the truth.”
[33:04] Bruce: “What happens is, people comment more on what they’ve heard than what they experience.”
If you’ve followed our content, you’ll see that we frequently get comments from viewers who have heard that whole life insurance is bad. Yet,
Do you want to build a private family banking system that will provide capital to you and future generations? Come see behind the scenes as we talk about our Marshall Family Bank in real-time.
https://www.youtube.com/watch?v=0buUbqGs5QQ
Today, we discuss why we added another whole life insurance policy, how our cash value is growing, and our vision for how we’ll use our family bank as the foundation to grow generational wealth.
So, if you want to see exactly how and why you can grow a family bank to secure capital reserves for your family for generations to come… tune in now!
Table of contentsWhy We Use Life Insurance for Our Private Family Banking SystemIdentify Your PrioritiesSafety LiquidityGrowthThe Evolution of Our Family BankAdding a New Policy to the Private Family Banking SystemWhy Get a Second Life Insurance Policy? Take the Next StepBook A Strategy Call
Why We Use Life Insurance for Our Private Family Banking System
Whole life insurance has the benefit of being a protection asset, as well as a place to store wealth. Just like you would tuck money in the bank, so too can you store money in a specially designed whole life insurance policy. The added benefit is, as Bruce states:
[4:45] “You’re storing [money] for a reason or purpose. And if you want to try to maximize your wealth, what you really are looking for is what to do to keep that money in motion.”
Whole life insurance does a few things for your savings. It keeps your money safe in a way that banks can’t. It allows you to grow your money with interest and dividends, and it provides you with the opportunity to leverage your money. The leverage piece is important because this gives you access to capital while being able to benefit from uninterrupted compound growth.
Ultimately, we’ve chosen whole life insurance because it helps us align our money with our family’s purpose and mission.
Identify Your Priorities
In wealth and wealth building, there comes a time when you must identify what is most important to you. The “big three” options are generally safety, liquidity, and growth. While you may be able to have all three components working for you, you only get to maximize two of the three. Choosing the one or two of these components that you’re going to prioritize and maximize is critical.
Safety
Safety refers to how secure your money is. How much are you putting at risk? Is a lot of your money tied up in risky or volatile assets? The safety of your money may also depend on what debt you have and how well-protected your money is from creditors. Likewise, you can make your money safer with things like umbrella and liability insurance, to protect yourself from lawsuits and other things that erode your wealth.
For safety, there’s often a cost trade-off. Insurance, for example, can protect your money from prying eyes, lawsuits, and liabilities—but it costs money. Similarly, you may feel that by not investing in riskier assets that you’re not maximizing your dollars.
Liquidity
Liquidity is how easily you can access your money. If you tie your money up in long-term investments and projects, it’s probably not very liquid. While you may not need all of your cash to be liquid, it’s important for many families to have an easy-to-access pool of money for emergencies and opportunities.
Growth
Growth is what most people think they want, which leads them to invest unwisely. Prioritizing growth has the potential to skyrocket your wealth. But depending on how you want to achieve your growth, it can be risky. And how much is growth worth if you lose it all?
Similarly, you may think it’s a good idea to invest in or acquire lots of low-risk assets. But if they aren’t liquid, how much are they adding to your quality of life?
While you may not maximize all three of the above components to wealth, you can have a pretty solid balance. Whole life insurance is one of those assets that scores pretty well in all thr...
Culture matters in the corporate world. It drives profitability and retention, reduces turnover, and leads to higher job satisfaction. But the family is an arena where the stakes are even higher. Without a strong family culture, all your plans, strategy, and even your legacy will fall apart.
https://www.youtube.com/watch?v=YrN5LyEtcpE
That’s why it’s time to dedicate yourself to building and living the family culture today. But what can you do to redeem your family and infuse your everyday life with meaningful connections?
Jeremy Pryor, Partner and Co-Founder of Family Teams is helping families build a multigenerational team on mission.
Today, we’re having Jeremy back to talk about the definition of family, why you want to build and keep improving your family culture, and the practical steps you can take now to lay the foundation for children who opt into your multigenerational family team.
If you’re looking for practical tools to strengthen your family culture today, so you have more connection, stronger bonds, more time together, and kids who choose to stay committed even after they grow up… tune in now!
Table of contentsWhat is Strong Family Culture, and Why Does it Matter?The Importance of FamilyWhat Are the Components of a Strong Family Culture?Challenges for Modern FamiliesBeing Intentional with Your FamilyNegative Family Experiences Important Elements of a Thriving Strong Family CultureConnect with JeremyAbout Jeremy PryorBook A Strategy Call
What is Strong Family Culture, and Why Does it Matter?
[4:06] “When you’re starting a family, this is one of the great privileges that you get to design the kind of family that you want to have.”
When you are developing a company, you have the power to develop the mission and culture of that company. You do this by identifying the goals of the business, as well as a way of “being” within the company. And just like you can formulate this cohesive work team, you can also form a cohesive family team.
It starts with your relationship with your spouse. By identifying your shared values and beliefs, and how you wish to exist in your household, you lay the foundation for your family culture.
[5:05] “It’s a wonderful experience to grow up in a household, as a child, that has a particular culture that brings the family together. And it can be based on things that you really feel called to, that you really enjoy. There’s not a blueprint for family that is so rigid that you can’t bring a lot of distinctives into the family, and make it something that’s truly unique.”
The Importance of Family
[7:10] “I come at this as somebody who was very confused about the topic of family; not very excited, it just didn’t seem like something that…really was working well. I grew up in the Seattle area. There was just a lot of divorce, and I just noticed a lot of brokenness.”
Family wasn’t something Jeremy believed he could choose to build. His experience with family units as a kid was less-than-ideal. This made him believe that you either lucked out or you didn’t. But over time he learned that there were families with an incredibly deep and intricate root system. The multi-generational families he met had a strong sense of identity and culture, and they supported one another. Their systems don’t implode when the kids grow up and have their own kids.
Team Pryor’s work is all about proving that family culture can be cultivated by calling in your family members to be a part of something bigger. This helps family members find a sense of pride and belonging within the family unit, as well as a purpose. A family with strengthened bonds can work together for the good of all involved, and foster a system of support.
What Are the Components of a Strong Family Culture?
[12:48] “One of the most basic ways to think about culture [is] the repeated actions that are distinctive to that group.”
Oftentimes, companies come up with “aspirational values,
Have you heard about Nelson Nash Infinite Banking, and Becoming Your Own Banker and you want to learn more? Or maybe you’re already using Infinite Banking, but would like to explain it better. Today, we're unpacking the truth about the Infinite Banking Concept and the strategy of using life insurance policy loans. If you're ready to learn more about the IBC strategy, and how to use your life insurance more effectively... tune in now!
https://www.youtube.com/watch?v=V8y-QLv01jI
Table of contentsWhat is the Strategy of Infinite Banking with Whole Life Insurance Policy Loans?How Does Infinite Banking Allow You to Become Your Own Banker?How Does Your Money Keep Growing, Even While You Use Policy Loans?How Does Infinite Banking Help Minimize the Cost of Capital? Why Do You NOT Pay Interest to Yourself When You Repay a Policy Loan?What Did Nelson Nash Mean When He Said to Be a Good Banker?What is the Benefit of Cash Values Being Listed as After Tax, or Net of All Taxes and Fees?Book A Strategy Call
What is the Strategy of Infinite Banking with Whole Life Insurance? It’s a process of borrowing against the cash value of your whole life insurance, where you’re placing a lien against your cash value. This allows your cash value to grow with uninterrupted compound interest, and you can put dollars to work in another asset at the same time.
What is the Strategy of Infinite Banking with Whole Life Insurance Policy Loans?
It’s a process of borrowing against the cash value of your whole life insurance. To do this, you place a lien against your cash value. This allows your cash value to grow with uninterrupted compound interest. And you can put dollars to work in another asset at the same time.
Your money has to go somewhere. Typically, people choose to put their money in the bank. However, this gives the bank the opportunity to reap all the rewards of your cash while you’re not using it. They can loan out your dollars to other bank members and earn interest on that money exponentially. So while it may not be bad to store your money in the bank (and inevitably, you’ll always have some money in the banks), you can create your own leverageable pool of money with whole life insurance. Then, you can reap the rewards that banks can.
How Does Infinite Banking Allow You to Become Your Own Banker?
Many people are curious: what does it mean to be your own banker? Since you’re not working with other people’s money, what’s the advantage of having a banking system? And how can you use it? The answer is leverage.
When you pay premiums, your cash value (equity in the policy) increases. This is your pool of money, or banking system. When you want to access your cash the IBC way, you do this as a policy loan. This means you’re using the insurance company’s money, instead of your own—just like the banks use their customer’s money.
A few things happen when you leverage other people’s money. First, you get to access capital without losing the compounding effect of interest on YOUR cash. So instead of withdrawing money and only earning interest on what’s left, you’re earning interest on everything you have. And while you're using it, you still get to use that money.
Second, you get to use that money to do anything you want. Many people choose to invest in cash-flowing assets, which help pay back the life insurance loans and create income. Third, because mutual companies are owned by the policyholders, you receive dividends when the company profits. The interest that you pay to the company for your loan is part of that profit, which means anything you pay directly correlates to the strength of the company and your own “profits.”
Lastly, you have all the control when it comes to how and when you use your money (unlike banks, which can choose not to lend you money).
How Does Your Money Keep Growing, Even While You Use Policy Loans?
When you borrow against your cash value,
Could a reverse mortgage help you reach your income goals? How do reverse mortgages work? Is a reverse mortgage good or bad?
https://www.youtube.com/watch?v=820qDZ5CkFE
Today, we’re talking with Mike Stanley, Regional Senior Lending Sale Manager for Thrive Mortgage. He shares everything you need to know about reverse mortgages explained.
So, if you want to understand just how reverse mortgages work, their pros and cons, and the costs, and get answers to your questions so you can make decisions… tune in now!
Table of contentsHow Mike Got Into Reverse MortgagesThe Baby Boomer GenerationBorrowing Qualifications for a Reverse MortgageWhat is a Reverse Mortgage? Numbers on a Reverse MortgageWhat if You’re Not Old Enough?Get in Touch with Mike StanleyBook A Strategy Call
How Mike Got Into Reverse Mortgages
[9:40] “Most people don’t know what a reverse mortgage is other than a myth or a rumor that they’ve heard.”
Mike Stanley got into the world of reverse mortgages in 2008, yet not without hesitation. He didn’t want to be taking advantage of people, and most information about reverse mortgages is a little hazy. In reality, there are quite a few reverse mortgage strategies that can help people in different ways.
10:25] “It’s not been called, technically, a reverse mortgage since 1988. That’s when congress, in 1988, passed a law called home equity conversion mortgage. You may hear it called a HECM. At that point in time, it stopped being a reverse mortgage, but it was such slang for the terminology. People still call it a reverse mortgage even though it’s a federally insured FHA loan that has all the protections of FHA.”
The Baby Boomer Generation
[13:10] “48 percent of Baby Boomers are retiring while carrying a mortgage into their retirement years… Another interesting fact, 50 percent of those 65 or older have their houses paid for, and 27 percent of those will downsize or right-size into a home that better meets their retirement needs.”
If you’re in the Baby Boomer generation, considering a reverse mortgage strategy can help you downsize. It can also help you find more retirement income by leveraging home equity. If not, those with Baby Boomer parents should be considering how they’re going to care for their parents.
Borrowing Qualifications for a Reverse Mortgage
[19:25] “Right now, to be a borrower, the borrower has to be 62 years of age minimum. It is a mortality or equity-based loan… We take four things into consideration. We take in their age… we take in the value of the home, and we take in the interest rate on the loan—and how much equity we’re going to have to leave in the house.”
What is a Reverse Mortgage?
The short and sweet answer is that you give up the equity in your home in exchange for regular payments. This can provide an income to homeowners over the age of 62, or help you keep your home in retirement. There are even options for those who have children who wish to inherit the home.
[24:18] “There’s a unique feature in the reverse mortgage… it’s called a non-recourse feature, which means and states that no one is ever responsible for paying their home back personally. Only the equity in the house can ever be used at the time the loan is due. The time the loan is due is when the last of the two borrowers… no longer live in a property as their primary residence, or one of them passes away, or they sell the house, or they refinance the house.”
[28:14] “There are four ways of taking money out. If you take a lump sum, there are two options. There’s a fixed rate option. And whatever you take out on a fixed rate is the maximum you get; there are no more funds available. On the… adjustable rate, there is a line of credit.”
[30:30] “Now they do have two other options. They could take what we call a tenure option, which a tenure is a life expectancy payout. Let’s assume that we run our numbers and based off their life expectancy and the pool of money that the...
If you're using Infinite Banking with a life insurance policy, you have multiple options to access your cash value. But which one is the best? Should you always use policy loans? What if you can get a lower interest rate by borrowing against your cash value with a third-party loan?
https://www.youtube.com/watch?v=pbQdVbQ1_q0
Let's discuss all of your options for accessing capital. This includes policy loans, withdrawals, cash value loans from a third party, and even capital from separate sources.
If you want to find out the reasons you might use each, the pros and cons, why interest rates are NOT the best way to make your decision, and the #1 most important thing you need to make sure you're in the position of maximum control ... tune in now!
Table of contentsWhy Pay a Finance Charge? How Does a Policy Loan Work?What is a Withdrawal from Your Cash Value?How is the Interest on a Policy Loan Calculated? Are Interest-Only Payments Better?The Benefit of Unstructured PaymentsBook A Strategy Call
Why Pay a Finance Charge?
One of the major objections to the Infinite Banking Concept is, essentially: Why should I pay to access my own money? Generally, with an IBC strategy, the way to access your capital is by leveraging it via a policy loan. This means that you offer your cash value as collateral for a loan from the insurance company. Because it's a loan, you pay interest on that loan.
This isn’t an unreasonable question. In fact, it’s a good question to ask of any financing method you use. The right solution will depend on how much capital you need, how much you have, what you want to do, and more.
But in general, accessing your cash value through a loan is a good option because you have control. Some of the benefits of a policy loan include:
The flexibility to use that money on anything you want.Tax-free use of your money (* as long as the policy stays in force and does not become a Modified Endowment Contract).Full compounding interest on your cash value because you aren’t withdrawing.Control over when and how you pay the loan back.No application process. This means you can leverage a policy loan in ways you might not do with a bank loan.No credit check, and no impact on your credit report when you take a policy loan.
How Does a Policy Loan Work?
If you want to access your cash value without a withdrawal, you can get a loan from the insurance company’s general fund. The company then puts a lien against the policy value, or the amount that you want to borrow against your policy. When you pay back the loan, you’re paying interest to the company. As you pay back the loan, the lien against your policy is reduced, which frees up your cash value to be used again, if you so wish.
When you take a loan, the company only collateralizes your policy for the amount of that loan. So if you have $200,000 of cash value and you just want a $10,000 loan, the company only uses $10,000 as collateral. This means that if you take that $10k and a few months later have a $100k opportunity, you still have that available to take another loan.
What is a Withdrawal from Your Cash Value?
Instead of taking a loan from the insurance company, you can actually remove money straight from the policy values. If you withdraw less than your cost basis (the equivalent of what you’ve paid in premiums), you can access the money tax-free. However, when you take out more than what you’ve paid into the policy, you cause a taxable event. The IRS sees this as growth on the policy, and is, therefore, taxable income when you take it “no strings attached.” Unlike loans, withdrawals cannot be paid back and thus permanently reduce your policy values.
How is the Interest on a Policy Loan Calculated?
If you’re wanting access to capital and thinking about a loan, you’re likely to compare interest rates between lenders and companies. Insurance companies often have competitive rates,
Most people don’t see the need for life insurance in their later years, let alone the benefit of whole life insurance in their retirement plan. By retirement, you may expect to have your home paid off, and not have the same income needs as before. You may even decide you're not retiring at all if you can help it.
https://www.youtube.com/watch?v=1kq9rC5nw6I
Even still, there are tremendous advantages to having whole life insurance that lasts for your whole life. This includes having insurance beyond what most consider their life insurance needs. Tune in today for this eye-opening conversation with Dr. Wade Pfau about the three key benefits of whole life insurance in your retirement plan.
Table of contentsThe Nature of Retirement IncomeThe Benefits of Whole Life Insurance in Your Retirement PlanHow Does the Volatility Buffer Work?Inflation RisksBuilding a Retirement Income PlanThe Reality of Stock Market ReturnsWhole Life Insurance In Your RetirementLinks ReferencedAbout Dr. Wade PfauBook A Strategy Call
The Nature of Retirement Income
[5:19] “What makes retirement income different is that the nature of risk changes… just in looking at how the investment world approached retirement income, I developed concerns.”
Those concerns led to Dr. Pfau looking into assets that are traditionally not considered retirement assets, like life insurance. Life insurance isn't common in retirement plans because many people don't believe they need it anymore. However, life insurance has benefits that many people don’t consider, and aren’t taught to consider.
[5:56] “In the risk management context of retirement… potentially looking at different tools, not just using only an investment portfolio to fund retirement expenses, can help lay that foundation for a better retirement outcome.”
When you only have investment assets for retirement, you have a sequence of returns risk. This means that you risk significant losses because you can’t time the market in retirement. After all, you’ve got to take your income to eat and pay bills.
The Benefits of Whole Life Insurance in Your Retirement Plan
The value of whole life insurance is that “the cash value is not exposed to the risk of loss,” as Wade says. The cash value is a non-correlated asset and grows no matter what is going on in the stock market.
[7:25] “It can provide a resource to cover spending on a temporary basis during this kind of bad market environment so that you don’t have to sell from the portfolio to fund spending... Well, then that gives the portfolio an opportunity to recover and to make up those losses again before we have to go back to selling from it.”
[8:01] “Ultimately the benefits [of whole life insurance] to the portfolio exceed the cost of the insurance to give a better net outcome, especially when we consider the tax advantages and so forth of life insurance.”
How Does the Volatility Buffer Work?
A "volatility buffer," as Wade Pfau calls it, is an asset that can help your investments during market downturns. The idea is that after the market dips, you can pull income from your volatility buffer to minimize your losses and give the account time to recover. When you give your investments some breathing room, you can extend the life of your investment account by years.
An ideal asset for a volatility buffer is whole life insurance because it's flexible and liquid. Not to mention, the death benefit provides some protection for your estate and assets. Whole life insurance gives you some freedom to spend without disinheriting heirs, too.
Inflation Risks
In conversations about retirement, people often ignore the impact of inflation. The harsh truth is that due to inflation, you will need more money in the future to have the same financial impact today. The equivalent of $100k salary now is going to be much more in the future.
[22:25] “Inflation has this permanent impact. Because if prices are up at eight percent this yea...
Have you heard about the Infinite Banking Concept and want to learn more? Or maybe you’re already using Infinite Banking but would like to be able to explain it better. Today we’re unpacking the question: What is the dividend?
https://www.youtube.com/watch?v=5yL_jW4q48E
If you’ve ever wondered how the cash value grows through dividends and how life insurance dividends differ from other types of dividends… tune in now!
Table of contentsWhat is the Dividend?Why Do I Need a Mutual Company for Infinite Banking?How Does the Dividend Grow My Policy?How Does the Dividend Relate to the Guaranteed and Non-Guaranteed Policy Cash Value?What Income and Expenses at the Life Insurance Company Determine the Dividend Rate?Why Shouldn’t I Compare Companies?How is the Dividend Applied to My Policy?Can Dividends Change in the Future?When Do I Receive Dividends?Why Are Dividends Applied Differently Amongst Policyholders?What is the Best Option for Infinite Banking?
What is the dividend? Dividends are the distribution of a mutual life insurance company's profits to its whole life insurance policyholders. Mutual companies declare their dividend rates annually.
What is the Dividend?
Dividends are the distribution of a mutual life insurance company's profits to its whole life insurance policyholders. Mutual companies declare dividends annually.
The IRS defines it as a "return of premium." This, however, is how the IRS can classify why dividends distribute tax-free.
Why Do I Need a Mutual Company for Infinite Banking?
When you’re with a mutual company, you’re participating in the company's profitability via dividends. When the company profits, it’s going to benefit you because you're a policy owner. This means you want the company to be as profitable as possible.
To recap an earlier episode of our infinite banking series, policyholders are partial owners of mutual companies. Stock companies, on the other hand, are owned by stockholders. In the latter scenario, companies will act in the best interest of the stockholders, even if it’s not in the interest of policyholders. Choose a mutual company to get dividends and work with a company that acts in your interests.
How Does the Dividend Grow My Policy?
Dividends are one of the major drivers of growth in a policy. The cash value increases in three ways: natural equity by paying premiums, the guaranteed interest portion, and dividends. While the latter is not guaranteed, they are highly anticipated.
How Does the Dividend Relate to the Guaranteed and Non-Guaranteed Policy Cash Value?
On a life insurance illustration, there are columns representing your guaranteed interest growth and the non-guaranteed growth they project you will receive. So while the former is what you can expect no matter what (since it’s guaranteed), the latter is the growth you can anticipate.
Additionally, the non-guaranteed column on an illustration will not show any dividends applied at all. Therefore, it’s a highly inaccurate way of looking at a policy illustration. Most mutual companies have paid dividends every year for the last 100 years or more. Another benefit is that once companies pay it out, it becomes guaranteed. In other words, once the floor of your policy increases, it cannot decrease.
What this means is that life insurance illustrations become inaccurate every year. Since both the guaranteed and non-guaranteed columns adjust to represent what actually occurs, and the declared dividend changes each year, the projections inevitably shift. Yet they never decrease from the “floor” of your policy.
What Income and Expenses at the Life Insurance Company Determine the Dividend Rate?
Dividends are profits paid to policyholders. However, they are declared and applied after other income and costs are accounted for.
So, for example, a life insurance company has to account for payroll expenses, agent commissions, and mortality costs (how many people died).
Want to get billionaire investing strategies and learn how to model the successful few? If you want to know how to invest like a billionaire, you'll want to pay attention to our guest Richard Wilson.
https://www.youtube.com/watch?v=P4792l4CVsU
Today, we’re talking with Richard Wilson, CEO and Founder of the Family Office Club. Richard has helped create and formalize 100+ family offices. He counts a shark from Shark Tank, several billionaires, many REITS, and 500+ high Net Worth investors as clients. He works with clients through InvestorClub.com and Doctor’s Investor Club where he helps them access top screened direct investments. Richard’s 18-person team operates multiple media platforms including Dentist Investors, LLC, InvestorResidences.com, Billionaires.com, and CommercialRealEstate.com.
If you’re looking for insights, strategies, tips, and secrets for how to invest like a billionaire… tune in now!
Table of contentsLifelong LearningFind Your Target and LearnHow Learning Leads You to Invest Like a BillionaireMental Models that WorkWhy Deal Structure is Critical to Invest Like a BillionaireContact Richard WilsonAbout Richard WilsonBook A Strategy Call
Lifelong Learning
[6:20] Bruce: I’ve noticed that really high net people—not just billionaires, but hundreds-of-millions millionaires—are lifelong learners, and they’re not the brash type of flamboyant people with a lot of energy. They are actually very pensive, and they actually listen, and they choose who they listen to very carefully. They’re always learning; lifelong learners. And I think that is probably why they’re able to amass the kind of wealth they are.”
[7:45] Richard: “[Charles Munger] talks about how over your life to be successful you need to collect a hundred plus mental models of things that work for your industry. And you might try on an idea from someone and maybe it doesn’t work well for you and your business, or not right now, and you may use that model later. And several times in my business I’ve seen a model that I want to use sometime, and I might use it three to five or seven years later. But when I see a really smart model, I’ll take note of that. Then I’m collecting these models and stacking them on top of each other. And that’s really how I grow my business.”
Find Your Target and Learn
[8:25] “Who would [business students] like to learn from? Well, it would be from somebody that has a successful business with millions of dollars of revenue, or tens of millions of dollars of revenue. It’s a very logical thing. Even if they never get to tens of millions of dollars of revenue, it might help them get to millions of revenue because there are so many best practices that people learn along the way. They don’t stop doing those smart things once they become successful… they keep the strategies that work and discard the things that don’t. And so the same is true with billionaires… seeing how billionaires work and seeing what they do leave you clues to how to become worth ten million dollars, perhaps.”
You’ll often hear us close podcasts and articles with a very similar send-off: “success leaves clues.” We believe this is paramount to learning about wealth because common advice is catered to the masses. Yet the successful follow the lead of the successful people before them. Part of what Richard does to further this mission is to post interviews with billionaires on Billionaires.com. This way, more people can benefit from the knowledge and skill sets of those who have walked the path already. If you want to invest like a billionaire, listen to the billionaires.
How Learning Leads You to Invest Like a Billionaire
Most of the billionaire clients that Richard works with are calling themselves to a certain standard of excellence. Beyond that, they all seem to have an intense passion and love for what they do. Ultimately, it’s these values of passion and excellence that unite these billionaires.
Have you heard about Nelson Nash, Infinite Banking, Becoming Your Own Banker, Bank on Yourself, and want to learn more? Or maybe you’re already using Infinite Banking, but would like to explain it better. We're continuing our series on the basics of the Infinite Banking Concept and answering your "what" questions. Today, we'll unpack, What is the death benefit?
https://www.youtube.com/watch?v=HbpNX3c35bo
So if you want to see the power of the death benefit… tune in now!
Table of contentsWhat Makes Up the Guarantees of the Death Benefit?What Are the Differences Between the Death Benefit Guarantees of Whole Life Insurance and Universal Life Insurance?What Are the Chronic Illness and Terminal Illness Riders, and How Do They Compare to Long-Term Care Insurance?What Effect Do Outstanding Loans, Reduced-Paying Up, or Chronic/Terminal Illness Riders Have On the Death Benefit?What is Human Life Value?What Does Life Insurance Do for Your Estate?Book A Strategy Call
What makes up the guarantees of the life insurance death benefit? The life insurance death benefit is the amount that is guaranteed to be paid out to your listed beneficiary at your death.
What Makes Up the Guarantees of the Death Benefit?
The death benefit is the amount that is guaranteed to be paid out to your listed beneficiary at your death.
The key to guaranteed death benefit is having whole life insurance, which is permanent. When you have whole life insurance, you’re in a position where you know that the death benefit will pay out at whatever point you die, between now and the end of that policy. And at the end of the policy, if you are still living, the insurance company still guarantees the death benefit to pay out to you. This is not the case with term or even universal life insurance (which claims to be permanent).
This also means that when you pay premiums, you’re paying into your policy with the certainty that you’ll get a “return.” Whereas with term insurance, you can pay into it for 20 years and never see a dime back.
What Are the Differences Between the Death Benefit Guarantees of Whole Life Insurance and Universal Life Insurance?
While both whole life insurance and universal life insurance are technically permanent insurance, universal life insurance has several variables that can cause a policy to implode or lapse. In other words, universal policies are typically not permanent in practice.
One of the major factors that makes universal life difficult to maintain is because it has flexible premiums. While many people assume that this gives them the flexibility to pay whatever they want, that’s not the case. So if you choose to pay less, you can underpay for your insurance coverage. This then eats into your cash value account, which may implode the policy if you continue to under-fund it.
With whole life insurance, premiums are guaranteed as well. This means that they cannot increase, so your base premium will always be enough to cover the costs of insurance. You won’t risk underfunding your policy, and you have the freedom to pay more in the form of PUAs if you wish.
What Are the Chronic Illness and Terminal Illness Riders, and How Do They Compare to Long-Term Care Insurance?
The chronic illness and terminal illness riders allow you to use your death benefit while you’re still living. If a physician certifies that you have an illness that will cause your death, many insurance companies now grant access to the death benefit while living at no additional cost.
Long-term care insurance is an additional cost, as well as some additional stipulations about when you can use it. Plus, the insurance company can increase premiums over time because of the costs when you have Long-Term Care. While we want companies to be able to offer the coverage, they do have to stay in business.
What Effect Do Outstanding Loans, Reduced-Paying Up, or Chronic/Terminal Illness Riders Have On the Death Benefit?
What is the difference between those who achieve financial prosperity and those who do not? How do you build sustainable wealth? Rabbi Daniel Lapin is back to talk about the mindset of abundance rather than shortage, the financial power of reading over watching, and why giving comes before getting.
https://www.youtube.com/watch?v=Ur0KWvfH7p4
So, if you want to increase your income while becoming a better person … tune in now!
Table of contentsWhy is Financial Prosperity Difficult to Grasp?Overcoming Your Spiritual SchematicsThe Five FsWhy You Should Read for Financial ProsperityConnect with Rabbi LapinAbout Rabbi LapinBook A Strategy Call
[6:15] “Honesty compels me to concede that what I am is an exceptionally good transmitter. I like to think of myself as a clean window: you can see through me into the scintillating and incandescent brilliance of ancient Jewish wisdom.”
Why is Financial Prosperity Difficult to Grasp?
In many ways, our culture makes money a sin and poverty a virtue. However, this gives money far too much credit in either direction. Money itself is a tool with no morality. Money simply represents value, and money goes where people find value–in products, things, people, and communities.
[9:48] “One of our greatest joys is to do a seminar for that church [with a poverty mindset] and then come back six months or a year later, and see the change.”
[10:13] “Mindset is very important. I mean, at an Olympic level, what separates athletes is not bodily perfection—they are all at the peak of physical perfection—what distinguishes them is simply psychological and spiritual; the will to win and the ability to endure pain.”
[12:15] “In the United States, people’s negative attitudes towards finances and prosperity happen to correspond with America’s deterioration from basically a Judeo-Christian, bible-based worldview to a secular worldview."
As Rabbi Lapin explains, those with a secular worldview are uncomfortable with the idea of “making” money over “taking” money.
Overcoming Your Spiritual Schematics
Your spiritual schematics, as Rabbi Lapin shares, are the formative experiences that you have that shape your worldview. For many people, their upbringing can be a major catalyst for their adult beliefs that to make money is immoral and that they’re taking something from another.
[36:20] “Making money is, at its heart, one of the most moral and dignified things you can possibly do. Because the only way you can get it is by pleasing other people.”
Money represents value, and people use money to prove that they value a service or product you provide. Therefore, it stands to reason that money cannot be evil or immoral. If we can change the cultural outlook on money, more people can thrive.
The Five Fs
One of Rabbi Lapin’s programs is about developing the Five Fs: family, faith, finances, friendships, and fitness. This helps people rewrite their spiritual schematics and strengthen these important areas in life.
[43:19] “The secret of the Five F, what makes it counterintuitive and difficult and challenging, is that you have to develop all five simultaneously and in balance. Anyone who focuses on one to the detriment of the other four is going to find themselves in trouble.”
When you focus on all Five Fs, you create a pretty amazing life for yourself. And what happens in this instance, as the Rabbi shares, is that you create a community of people who are walking in step with each other. Your family and your friends have the same values, so of course, they’re people you can trust with the other Fs, like your finances.
Why You Should Read for Financial Prosperity
[51:50] “Watching destroys the imagination. With no imagination, there’s no way you’re ever going to dream up a business plan. You won’t. It’s as simple as that. Imagination is an incredibly powerful business tool. I’ve got to imagine how life could be better; not only for me but for my potential cust...
Have you heard about Nelson Nash, Infinite Banking, Becoming Your Own Banker, Bank on Yourself, and want to learn more? Or maybe you’re already using Infinite Banking, but would like to be able to explain it better to your spouse, your parents, your children, business partner, or friends. We're continuing our series on the basics of the Infinite Banking Concept and answering your "what" questions. Today, we're unpacking: What is the Cash Value of Life Insurance?
https://www.youtube.com/watch?v=YVAk0pT7kgY
So if you want to see how cash value works as a living benefit that enhances your life today … tune in now!
Table of contentsWhat is the Cash Value of Life Insurance?How is Cash Value Related to Death Benefit?What is the Net Present Value of a Future Death Benefit?What Makes My Cash Value Grow?What is the Effect of Guaranteed Interest on My Policy?What is the Benefit of Having Cash Value?What Part of the Policy Can I Borrow Against?What Happens to My Death Benefit When I Take a Policy Loan?What Happens to My Principal and Interest on a Policy Loan When the Loan is Repaid?What If There Is An Interest Balance Leftover?What Can I Do With My Dividends?Book A Strategy Call
What is the Cash Value of Life Insurance?
What is the Cash Value of Life Insurance? Cash value is the equity portion of your whole life insurance policy that you can access and use. It is a part of your death benefit, not separate, and you can access and use it during your lifetime.
Cash value accumulates in a few ways: premium payments, guaranteed interest, and non-guaranteed dividends.
How is Cash Value Related to Death Benefit?
Because cash value is like the equity of your death benefit, the value represents the accessible portion of your death benefit. As your policy matures, it rises to meet your death benefit. So your cash value is designed to equal your death benefit by the time it endows. The current endowment age is 120. Since endowment represents your ability to access the full value of your death benefit, the policy pays out to you and the contract is complete.
However, you’re still guaranteed to receive the full death benefit if you pass away at any point before endowment. That’s the power of a whole life insurance contract. But because the cash value is equity, not a separate account, the payout is not cash value + death benefit. You receive the full death benefit.
What is the Net Present Value of a Future Death Benefit?
The Net Present Value of your future death benefit is another way of describing the equity in your policy. The “net present value” is the current present amount of your cash value account, which is a portion of your future death benefit.
What Makes My Cash Value Grow?
Over time, your cash value grows as a product of your premiums, interest, and dividends. Your premium–the payment you make to keep your insurance in place–is the main source of cash value growth. However, insurance companies also guarantee that they will pay a certain amount of annual interest, as well as any company profits in the form of dividends.
The cost of the insurance itself affects the growth. For example, premium payments must first cover the cost of insurance. When you pay a premium, that money contributes to payroll, investments, and commissions. The remainder is what you have available in your cash value. Since the cash value is the net present value of a future death benefit and the risk to the company lessens with time. Think about it: the risk to the insurance company is greatest when you open a policy. There’s a chance, however small, that you only make one premium payment before you pass away. But because the policy is in force, the company must pay the full death benefit. Over time, you pay more and more into the policy, so the actual costs are decreasing and instead contribute more heavily to your cash value.
Another way to grow your cash value is through guaranteed interest.
Every family has a culture, but those that leave their culture to accident rarely end up lasting across the generations.
https://www.youtube.com/watch?v=LuDIvGkkrVE
Mitzi Perdue shares the wisdom of successful multi-generational families, as she connects two business titan families with a collective 276 years of staying together as a family. She’s a businesswoman, speaker, and anti-trafficking advocate. Mitzi is also the author of How to Make Your Family Business Last, How to Communicate Values to Children So They’ll Love It, and How to Keep Your Family Connected.
So, if you want to create a family culture and traditions that solidify, strengthen, and “glue” your family together over the generations... tune in now!
Table of contentsHow Mitzi Became Interested in Family CultureWhat is Different About Families that Last for Generations?The Henderson Family DinnerWhat Can Families Do to Build a Functional Family Culture?How to Avoid Airing Dirty LaundryThe Family ConstitutionThe Henderson ApproachBuild Family Culture with a Family NewsletterConnect with Mitzi PerdueAbout Mitzi PerdueBook A Strategy Call
How Mitzi Became Interested in Family Culture
Some time ago, Mitzi lived in New York and belonged to the “Famous Last Names Club.” As you might imagine, members of this club were from high-profile families in the US. One of the conditions of belonging to the club was that you never mentioned the names of the members. So while Mitzi doesn’t share names, she does share the fascinating story of how she first became interested in what makes a high-functioning family.
As it turns out, Mitzi was at a lunch with about 16 of these club members, when someone asked the question: How well do you get along with your siblings? And unfortunately, as people around the table shared, it was one catastrophe story after another. One woman shared that her brothers were freezing her out of the family business by “forgetting” to tell her about meetings. Another person shared that their family members were suing each other, and the inheritance was going to legal fees.
The list of disaster stories just continues.
Cultivating Family Culture
[6:33] “That’s telling me that there are a lot of very famous families that haven’t figured out the basic of how to get along.”
Of course, Mitzi was the last to share, but she didn’t have any horror stories about her siblings. Things were good in her family, and continue to be. So she didn’t say much at all, to avoid sounding insincere or as though she was gloating.
[7:10] “As I left that meeting, you know, I’m thinking that the two families I’m a part of are the biggest source of joy in my life. What do we do that not everybody else does? And what enabled us to last so long? Because the statistics on families lasting—every generation only about a third of family businesses make it to the next generation. And by the time you’re at a hundred years, only one in a thousand makes it that long…I spent the next fourteen years reading everything I could, interviewing people, even writing blog posts.”
What is Different About Families that Last for Generations?
[11:14] “High-functioning [families] means you enjoy being together. You probably have above average mental health [and] physical health. Kids stay in school and finish school. If it’s their temperament, they go on to college. They form good marriages; they don’t get pregnant before it’s time to be pregnant… They don’t get in trouble with the law. The [kids are] less subject to obesity, they’re less subject to substance abuse. That’s high-functioning.
Mitzi shares that families that spend time with each other and know their family stories are the ones that are the highest functioning. When they're high-functioning, they tend to meet the criteria above. One correlation experts have noticed is the more meals a family has together each week, the higher functioning they are.
Have you heard about the Infinite Banking Concept, and you want to learn more? Or maybe you’re already using Infinite Banking, but would like to explain it better to your spouse, your parents, your children, business partner, or friends.
https://www.youtube.com/watch?v=JD3NvQBiqaI
In part 1 of our series on Infinite Banking, we're unpacking the basics of policy design and what that means. You can view the first part of the series here: What is the Infinite Banking Concept? Part 1.
Here’s your cue to see what the fuss is all about… tune in now!
Table of contentsWhat is Specially Designed Whole Life InsuranceWhat Makes it Different from Ordinary Whole Life Insurance?What is Base Premium?What Are Paid-Up Additions?What is a Mutual Company?What is a Dividend?What is the Difference Between the Policy Owner and the Insured?Roles Are FlexibleShould You Buy a Specially Designed Policy or an Ordinary Policy?Book A Strategy Call
What is Specially Designed Whole Life Insurance
What is Specially Designed Whole Life Insurance? The “special design” is dividend-paying, high cash value whole life insurance with a mutual company. This is the simplest definition, and we’ll break down the pieces and parts over the next few questions. This answer gives you something to come back to and ground yourself.
What Makes it Different from Ordinary Whole Life Insurance?
Essentially, ordinary whole life insurance is a basic policy that has a simple, non-optimized cash value component, and death benefit. With this type of policy, you only pay the base premium. A Whole life insurance product is a permanent, guaranteed insurance policy that lasts your whole life. However, if you are interested in using an Infinite Banking strategy, you’ll want to ask for a more customized policy. For example, you can either buy a policy with a stock company or a mutual company, which can affect your cash value growth. Similarly, you can also customize what you pay in premiums vs. paid-up additions, which affects your cash value growth. An “ordinary” whole life insurance policy may not grow cash efficiently, yet for Infinite Banking having a specially designed policy is important.
What is Base Premium?
The base premium is the minimum premium that you must pay in order to keep your policy in good standing. This premium is calculated by the underwriters who use actuarial science to determine your premium based on age, health, and death benefit amount.
Your base premium contributes to your cash value over time, just like mortgage payments contribute to your home equity. If you want to speed up your early cash value growth, you can add PUAs to your premium payments.
What Are Paid-Up Additions?
Paid-Up Additions, or PUAs, are additional portions of insurance that you can buy fully paid up each year. This means that on top of the premiums you pay toward your base policy, you can buy a certain amount of additional coverage each year. This gives you additional death benefit, and it also gives you additional cash value.
When understanding PUAs, it’s important to grasp how cash value works. Your cash value is the equity of your death benefit, just like you build equity on your home. That means that as you pay your premium, you build equity on your insurance policy. Cash value is the accessible portion of your death benefit.
Additionally, your early premiums have a slow build-up. This is because the costs of your policy are front-loaded. So, at the beginning of your policy, your cash value won’t increase at a rate equal to what you pay. Though, over time, more of your premium will contribute directly to the cash value.
PUAs are like micro policies that you can tack onto your premiums each year, up to a limit. Your PUAs are a fully paid-up portion of insurance. This means that when you pay it, you’re directly increasing your death benefit and cash value. By adding PUAs to your base premium,
We often talk about multigenerational legacy and multigenerational wealth, but beneath it, you need a multigenerational family team. Not just in name, but a strong team deeply committed to flourishing for generations.
https://www.youtube.com/watch?v=VCWRk1N_Bdw
Jeremy Pryor, Partner and Co-Founder of Family Teams, is helping families build a multigenerational team on a mission. They help parents think of families as a team, and coach the team to work together toward a common mission. They also give practical guidance for developing family rhythms, training, traditions, business, and home life.
If you’re looking for practical tools to strengthen your family, work together in business, and flourish for generations… tune in now!
Table of contentsJeremy's Introduction to Multigenerational Family TeamsIndividualism is the Default TodayIndividualism vs. the Multigenerational Family TeamCreating a Balanced Multigenerational Family TeamThe Hundred-Year HorizonThe “Intangible” Family UnitAre There Dysfunctional Family Teams?About Jeremy PryorBook A Strategy Call
Jeremy's Introduction to Multigenerational Family Teams
Jeremy grew up in Seattle, and he describes it as a place that had very few flourishing families. It wasn’t until Jeremy studied abroad in Jerusalem that he became immersed in a culture that valued family foremost. Fatherhood, particularly, was a critical piece of the family culture in Jerusalem. To the people he met, the family was about legacy, and people viewed their family as a team or unit. It was at this point that Jeremy’s interest in creating his own multigenerational family sprouted.
What he found in his research was that multigenerational family teams or structures tended to occur when people were in survival mode. During periods of war, recession, or other hardship, families would rely more closely on each other. This helped to ensure the well being of everyone. Yet as things adapt to become "safe" again, the world becomes more individualistic.
The problem is that when people are individualistic, they lack stability, and can ultimately become isolated. Not only does this mean people are spending their final years alone, but there is little to no sense of generational security. Creating a family culture that centers around the whole unit's ability to thrive fosters connection, confidence, and security.
Individualism is the Default Today
[11:58] “You actually have to ask people to make a choice, and it is a choice. Like you could just raise… your kids to be a group of individuals, and to reset every generation, and to have that 80-year memory that the typical western family has. Or, you could choose to be a multi-generational team and take on some things together, and have that long legacy memory. But you get to choose.”
[12:24] “In our culture, the vast majority of people… will choose to live out that individual life… because that’s the default, unfortunately. And that’s the reason why they’re doing it. That’s the reason why more and more people are living and dying alone. Because we don’t realize that we’re making a thousand small decisions to isolate ourselves from other relationships.”
Individualism vs. the Multigenerational Family Team
Because of an assumed sense of stability, as Jeremy shares, the multigenerational family team has all but disappeared in the US. People now rely on their own devices, rather than working with their families to create wealth and support each other. After all, in times of survival, it makes sense for families to rely more closely on each other. And when the nation prospers and life is good, people tend to branch out and forget the power of a family who works as a team.
[15:23] “You will, if you go on default, build an individualistic family; a springboard for individual success. That’s okay, you can do that…[but] there is another option. You can instead build a multigenerational family.”
What Is Infinite Banking?
Have you heard about Nelson Nash, Infinite Banking, Becoming Your Own Banker, bank on yourself, or be your own banker and want to learn more? Maybe you’re already using Infinite Banking but would like to explain it better to your spouse, parents, children, business partner, or friends.
https://www.youtube.com/watch?v=dSCWZD5Hpbo
Today, we're starting a new series on Infinite Banking Basics. We'll be unpacking all of your "what" questions about Infinite Banking. In this conversation, we answer:
What Is Infinite Banking?What Is Whole Life Insurance?What Is the Purpose of Life Insurance?
So if you want to see how Infinite Banking gives you control and options, why you don't want only term life insurance, and why insurance is still for you, even in your latest decades… tune in now!
Table of contentsWhat is Infinite Banking?What is Whole Life Insurance?Term Insurance vs. Whole Life InsuranceWhat is the Purpose of Life Insurance?Book A Strategy Call
Infinite Banking Explained
The infinite banking concept is complicated, and something that most people learn over time. Even seasoned users of infinite banking have “ah-ha” moments as they grow in their understanding. The purpose of this conversation is to accelerate some of those “ah-ha” moments so that you can have the tools to get started.
[5:44] “Let’s be honest. Do you really, really, really need to know how something works? Or do you want to know what it does for you, and what it allows you to do in your own life? So we’re going to play that balance delicately today.”
What is Infinite Banking?
The simplest answer to this question is that infinite banking is a strategy of using specially designed whole life insurance. However this may call up many other questions, such as what is whole life insurance, and what does it mean to be specially designed?
To take the topic in a broader direction, let’s say that infinite banking is about creating financing opportunities. We all finance things: mortgage payments, car payments, bills, groceries, credit cards–-all of these are financing scenarios. An infinite banking system creates an additional, efficient pool of money for financing your life.
[8:22] “Nelson [Nash] said your need for finance is greater than your need for saving.”
The beauty of infinite banking is that you get to do both–save money, and finance purchases. This is because you’re creating a financial system for yourself that mimics the banks.
[10:58] “What infinite banking puts in your lap, or in your hands, is this ability to model the bank and act like the bank and control capital. And that’s at the core of why it allows you to finance well and save well, because you’re in a position of controlling capital like the bank does.”
The preferred vehicle for infinite banking is whole life insurance, which helps you create a pool of money that is safe and growth-oriented.
What is Whole Life Insurance?
Life insurance is insurance that you pay a premium for, and if you die while the policy is active, your family receives a payout of money. The simplest definition of whole life insurance is life insurance that lasts for your whole life and provides a cash value account.
The reason it lasts your whole life, as opposed to term insurance, is because of the structured agreement. You agree to pay a certain amount of premium over your lifetime, in exchange for coverage over your lifetime.
[14:54] “Whole life… takes the insurance cost and it spreads it out through your entire life.”
This model guarantees that you will have coverage in place if you die, so long as you hold up your side of the deal: paying premiums. Fortunately, these premiums don't just vanish. You actually get to access your cash, through the policy's cash value component.
Cash value works like home equity. The more premiums you pay, the more access you have to your cash value while you’re living.
Why would a commercial real estate investor, author, and syndicator move away from apartments and become a self-storage investor?
https://www.youtube.com/watch?v=0y_47Zr3F6g
Paul Moore, real estate investor and author of Storing Up Profits, demonstrates how to capitalize on America's obsession with stuff by investing in self-storage.
So, if you want to find out what's to love about self-storage, learn the risks and downsides of self-storage, and get the scoop on how it performed during the pandemic ... tune in now!
Table of contentsPrior Interviews with Paul MoorePaul's Introduction to Self-StorageBigger PocketsWhy Self Storage?What is Value-Add in Self Storage?The Risks of Self StorageHow to Get Started in Self-StorageConnect with Paul Book A Strategy Call
Prior Interviews with Paul Moore
Lessons from a Commercial Multifamily Investor, with Paul MooreWellings Capital: Opportunities in Commercial Real Estate, with Paul Moore
Paul's Introduction to Self-Storage
After selling his company to a public firm in his 30s, Paul thought he was going to get out of the game and focus on his family. However, he quickly realized that he wasn’t fulfilling his calling, and therefore was not being the husband or father he wanted to be. On top of that, he was bored.
This spurred him to seek a way to fill his time in a purposeful way that could also help him protect his family’s wealth. What occurred to him was real estate, so he started flipping houses and lots, and finally building houses.
[4:28] “I found out something really important that everybody needs to know. If you don’t know how to tighten the doorknob on your own house, you probably shouldn’t build a house.”
Eventually, he found his place in multi-family real estate. But after a while, he felt like what he thought was the “perfect investment” was no longer perfect because he had to overpay to get it. After research and time, his team discovered self-storage investments and created a fund to invest in that space.
Bigger Pockets
Paul started his work with Bigger Pockets as a blogger, sharing his wisdom on real estate. And every six months, he would ask, “Is there anything else I can do to serve you?” Because Paul was invested in their success, and helping Bigger Pockets succeed, they’d let him do videos, live shows, and write books through them.
[7:17] “Bill Gates, he did three things to become the wealthiest person in the world. Number one, he decided at a young age what he wanted to do and he stayed in that lane… Second, he… found the biggest, most influential platform in the world that would be willing to let him partner with them. And then the third step is… not obvious. He did everything in his power to make them successful. Not himself, but them.”
Why Self Storage?
One of the benefits to self-storage, as Paul shares, is the short time frame the asset operates on. When you lease commercial property to someone, those leases are often a decade or two long, which means that rent is locked in. With self-storage, leases occur on a month-to-month basis, so you can raise prices as you see fit each month.
[10:58] “The thing I like best, though, is the fragmented industry. Now self-storage has about 53,000 facilities in the US. That’s about the same as McDonald’s, Starbucks, and Subway combined.”
About 75% of these facilities are run by independent operators, and two out of every three independents own one facility. This means they’re classified as a mom and pop, and they don’t have to have a lot of knowledge to make a good profit. However, this creates opportunities for experienced investors to come in and acquire the property, and capitalize on any oversights to drive further profits.
What is Value-Add in Self Storage?
[18:06] “The first time I heard value-add and self-storage, I think I laughed out loud. I mean, where are the countertops and cabinets and flooring and bark park and lighting and, you know,
Here’s a listener question about personal finance for beginners: "What is the foundation or the starting point of wealth building? What are the core things I would want in place to start building wealth?"
https://www.youtube.com/watch?v=l0T2gjJvaAg
You might be asking the same question. Do you have savings you want to do something with? Are you wondering if you are making the best personal finance decisions? Is it time to talk with a financial advisor? What do you need to know to figure out if the plan you create is going to be best for you?
Many people with great money habits realize that it’s time to do some planning when they have a stash of savings. Should you invest? In the stock market? Which stocks? With which company? How much risk should you take? How do you track your performance? Will your plan get you closer to financial freedom?
Let's talk about the 10 things you want to have in place in your personal finance, to make sure you’re headed in the right direction with a plan you feel good about. Tune in now!
Table of contentsWhat is Wealth?Ways to Define WealthOther Ways to Think About WealthWhat is Financial Planning?How Do You Optimize Your Financial Life?Optimize Your Personal Finances: 8 Habits to Have in PlaceConsistent SavingsIncrease Your SavingsSave with Safety, Liquidity, and Growth in Mind15-Minute Money6-12 Months of ReserveThink of Savings as Emergency and Opportunity FundNever Stop SavingLook Into Infinite BankingInvest with Knowledge and Control Start Your Personal Finance JourneyBook A Strategy Call
What is Wealth?
[8:58] Bruce: “The first thing I would say is that you really have to decide what your definition of wealth is for you.”
Bruce elaborates by sharing how, when asked about his Net Worth, he had to unpack the statement. Because typically, Net Worth is someone’s “pile of money.” It’s the culmination of their assets against their liabilities. To some, this may be the most important financial marker. However, Bruce and his wife decided that they valued cash flow more than a pile of money. So for them, Net Worth doesn’t necessarily scratch the surface of what they can do with their money.
Ways to Define Wealth
There are three fundamental ways people define wealth, which may help you get clearer on your own personal definition of wealth. Net Worth is the first definition, which is viewing your finances like a balance sheet.
Another way to define wealth is to consider not just your cash flow, but how that cash flow represents your wealth potential. This is more abstract, but consider it for a moment. Say you have $400,000 of cash flow. This is a fraction, or percentage, of your total wealth potential. That total wealth potential represents what your cash flow would be if you saved that money in an account earning, say, 4%. That would make your wealth potential $10 million. If you reverse engineer this, you could theoretically live off of 4% of that same $10 million, which would be the $400,000.
Finally, many people today consider their time to be their wealth. So this may not be represented by a certain dollar figure, but by how much control you have over your time. Many people today choose to be entrepreneurs for this reason or work in the “gig economy,” so that they have more time.
The point is not that there is one ideal of wealth, but that you can reach a point on your journey where you feel as though you are wealthy. So, you must define wealth for yourself. Your definition of wealth may include some combination of these aspects or other ones entirely.
Other Ways to Think About Wealth
In the book “Complete Family Wealth,” the authors define wealth as a family flourishing. They pose the idea that if you’re not happy, healthy, well-connected, and in control (among other things) then you are not truly wealthy. Wealth is not simply about money, but about whether you are living the life you wish to live.
Are you working too many hours? Chances are, you don’t have the right people on your team. And if you don’t, chances are, your hiring practices are causing more problems than they are solving. Ryan Englin created Core Matters to fix your recruiting and staffing headaches. He coaches and trains business owners to hire better people, faster.
https://www.youtube.com/watch?v=D8N47KLdPH4
So, if you want to hire and retain rock star employees… tune in now!
How Ryan Got Started
Ryan's father worked in manufacturing, and his early memories are of spending time with his dad at the plant. He often spent nights and weekends there. It wasn’t until much later that he realized that he was inexpensive labor. And while Ryan’s dad had lots of people working for him, he still struggled to find the right people.
[4:15] “One rock star employee will replace two or three mediocre employees all the time.”
It’s really hard to fathom this, though, as a business owner. Most people think they want three sets of hands instead of one. However, as Ryan points out, there’s massive value in having one person that doesn’t make mistakes or create drama.
When Ryan was older, he saw the same issue with his clients. They were struggling to find the right employees, and it was eating into their personal lives. He experienced the problem himself when he became a father, and wanted to spend time with his family. So he began to solve the problem for himself, and later his other clients.
The Hiring Bottleneck
Hiring is one of the most common problems for entrepreneurs, and Ryan attributes this to a lack of information. There are so many books and resources on practically every other facet of entrepreneurship that most business owners can easily access answers. There simply seems to be a lack of accessible information about hiring the right people.
In fact, when it comes to hiring, most of the information is about getting bodies in the door and retaining them. It’s about creating the “Silicon Valley” environment of game rooms and food bars, and other attractions. But this has very little to do with finding people who are a good fit, beyond just their resume.
[8:35] “When it really comes down to people–and understanding their hopes, their dreams, their goals, the things that they want to accomplish—there are not a lot of books about that as it relates to business. And so what I think a lot of people do is they look at efficiency as a way to improve their business.”
But there’s only so much efficiency that you can accomplish. For example, you can cut expenses as much as possible to make more efficient use of your dollars, but you’ll never get to zero. There are always going to be expenses. When you focus on people, however, you can look toward increasing revenue, and you can increase revenue infinitely. The right people are going to improve your business.
The Importance of a Good Process
[9:35] “What I believe is—this is probably no secret—humans aren’t perfect, we all make mistakes. And what I believe is, if you have an employee that’s a good employee, and you give them a great process, you’re going to have great results. If you have a great employee and you give them a mediocre process, you’re gonna have mediocre results.”
Good people are the first step to good results, but people can only be as good as the process you give them. As a business owner, it’s critical to have a good process.
The Jim Collins Bus Analogy
Jim Collins, a prolific business researcher and author, has a bus theory that explains the importance of the “right people.” In essence, it’s about having 5 or 6 leaders on your bus, or team. Ryan takes this analogy a bit further, and considers who else might be on that bus. In other words, what other team members are going to be involved?
Ryan asserts that this is a huge opportunity to hire people with a similar vision. Because while the rest of the people may not have a say on where the...
Nelson Nash, Father of Infinite Banking, left quite a legacy. One of the things that he poured his life into was teaching and training advisors to serve clients with excellence. Every year, IBC practitioners, clients, or anyone searching for a deeper understanding of Infinite Banking gather at the Nelson Nash Think Tank. There, they share ideas and recommit to the fundamentals of Infinite Banking the way Nelson taught.
https://www.youtube.com/watch?v=lMjYKI95DI8
Bruce traveled to the 2022 Nelson Nash Think Tank, and I'm looking forward to discussing his observations and thoughts.
So if you would like to hear some of the most important topics, issues, and trends in Infinite Banking ... tune in now!
Table of contentsWho is Nelson Nash and What is the Think Tank?The Importance of the FundamentalsPerfect Practice Makes PerfectWhat Are the IBC Fundamentals?Banking is a ProcessIBC Creates “Forced Savings”Human Nature“Don’t Steal the Peas” You Finance Everything You BuyBook A Strategy Call
Who is Nelson Nash and What is the Think Tank?
There’s an incredible amount of knowledge at the root of the Infinite Banking Concept, which was created by Nelson Nash the author of Becoming Your Own Banker. Whole life insurance itself was not a new product or discovery. However, Nelson Nash realized that there could be a greater purpose and use for specially-designed whole life insurance. He used this strategy himself and later coined the term “Infinite Banking Concept.”
He created his books and the IBC practitioner program to help more insurance producers understand IBC. And subsequently, he created the program so that IBC could help more people. The Nelson Nash Think Tank is an annual conference for dedicated IBC practitioners to keep their knowledge sharp. It also helps IBC practitioners to identify and solve problems in the industry.
The Importance of the Fundamentals
One benefit of the Nelson Nash Think Tank, for IBC practitioners, is that it is a return to the fundamentals. In other words, the basic essentials of the Infinite Banking Concept.
In any industry, it’s easy to look forward to fresh ideas and new ways to approach business. However, the fundamentals are the basic principles that hold everything together and guide your actions. Returning to the fundamentals ensures that you continue to stay on the path, and remain true to the most basic ideas. The same is true for IBC.
[5:25] “Everything you do in life, whether it’s learning a new skill or your own family, there should be some things that should be consistent and repeatable… Kind of like we talk about with money principles.”
Not only can refreshing your understanding of the fundamentals help you approach new challenges, but it can also help you retain a “beginner’s mindset.” When you’re an expert in a field, it’s all too easy to forget that others don’t necessarily have the same background or understanding. But if you attempt to teach someone as if they DO, things get lost in translation.
Returning to the basics in your own practice can help you more effectively teach or help someone with a beginner’s understanding of a topic.
Perfect Practice Makes Perfect
Studying the fundamentals also ensures that you understand all the intricacies and nuance of your craft. True mastery takes time, effort, and dedication. It may seem boring to rehearse the basics, when there may be more interesting or complex things to study. However, it’s critical to know the fundamentals so well that you can recall them at the drop of a hat.
For example, as a basketball player, the fundamentals may be to take proper care of your feet. It seems simple, trivial even. But if you buy the wrong socks, or don’t lace your shoes correctly, you can get blisters that cause more issues down the road.
The more you return to and practice the basics of your craft, profession, or industry, the more you prepare yourself to operate at the best of your ability a...
Do you want to write the perfect letter to your kids, but don’t know exactly where to start, what to say, or how to share your heart best?
https://www.youtube.com/watch?v=Nes6G6sX8bk
Legacy Letters solve this problem.
Blake Brewer is on a mission to help 1 million dads write at least one well-written, meaningful, lasting Legacy Letter to their children.
Today, we’re digging into the importance of our parent’s words, how to prepare your heart and mind to write this letter, the three things that everyone needs to hear from their Dad and Mom, and how to ask forgiveness as a parent.
So if you want to share the words that best communicate your heart… tune in now!
Table of contentsWhy Write Down Your LegacyThe Legacy Letter that Started it AllHelping 1 Million DadsCrafting Your Legacy LetterThe Parent “Wound”Asking ForgivenessThe Most Important Components of Your Legacy LetterBook A Strategy Call
Why Write Down Your Legacy
Writing a legacy letter, as we’ll explore, is an opportunity to create a tremendous impact in the lives of your children. It’s actually important for the same reason life insurance is important on a security level–because one day, you won’t be around. And like life insurance, a legacy letter can help your children move forward with as few obstacles as possible.
Lucas and I wrote legacy letters for our children after my near-death experience a few years ago. At the time, we wondered: What if we don’t have all the decades ahead that we hope for? How would we be able to communicate all the most important thoughts and lessons to our daughters?
A legacy letter is your opportunity to leave a tangible piece of yourself and your wisdom with your children and loved ones. That way, no matter what the future brings, you can be confident that all of your most important thoughts will make it into your children’s hands. It’s a powerful tool for families, especially for families looking to build a robust, multi-generational structure for the future.
The Legacy Letter that Started it All
[5:44] Our guest, Blake Brewer, shares his own experience of loss, and how that led to his role in helping families create their legacy letters. After his father’s passing, which was incredibly sudden, Blake’s mother gave him the letter his father had written for him.
[10:43] “Even before I finished the letter, I felt so loved, that my dad would take the time to write this letter. I don’t know what he gave up, what he sacrificed, what TV show he didn’t watch; but my dad took the time to write down his thoughts and feelings about us, and gave some great life advice. The last line of this letter, only God could have allowed my dad to write it. My dad wrote, ‘As you follow Christ, you’ll often find yourself in the minority here on Earth, but I can assure you in Heaven, you’ll be in the majority…’”
The words were the exact comfort that Blake needed at that moment and helped him to begin processing his grief. In fact, it helped him to process his grief in a healthy way, thanks to his father’s words. He says it was that letter that changed his life.
[12:05] “My dad had life insurance, so I’m grateful for that as well. My mom didn’t have to go to work, our life stayed the same, and I’m thankful for that. But this letter is worth just as much as the money that my dad provided for us.”
Helping 1 Million Dads
A few years ago, Blake decided to write his own letter to his children, so that they would have something of him when they needed it most. But when he sat down to start writing, he saw how difficult it was. He had plenty of ideas to put onto the page, but organizing them into the right words was hard. Other fathers he had talked to over the years, who resonated with Blake’s story, had also found the process difficult.
At the same time, God brought several other men into his life that received letters from their fathers. And these letters also changed their trajectory.
Are you feeling the rise in prices and wondering what the long-term effects will be on your financial goals? When inflation eats away at the value of your dollars, how do you protect from inflation? What are your options for a level-headed approach to getting your money to do the most today and in the future?
https://www.youtube.com/watch?v=UE5jjK89nRg
Today, we're talking about your options to protect your money against inflation...so if you want to keep your money growing, tune in now!
Table of contentsShow NotesCommon Advice for Protecting from InflationSeeking Growth in All ThingsArticles ReferencedBook A Strategy Call
Show Notes
[0:00] Introduction: How should you prepare financially to protect your money from inflation?[2:40] Your goals, principles, and personal economy change what strategies might work for you.[4:15] Not every facet of our lives is foreseeable; so we must prepare for unknowns.[5:05] How the financial entertainment industry affects our perspective.[7:40] The value of truth over opinions.[8:55] The financial philosophy “advance and protect.”[9:55] “I think you need to stick with your fundamentals, even when the information around you is telling you, ‘Do this! Do that!’ Because it can be very attractive and it can pull you towards wanting to do something, or telling you that your fundamentals are wrong.”[10:52] Do not take education as advice. Education should provide you with information to make better decisions, yet it cannot replace personalized advice based on your unique personal economy.[11:55] Financial advice and wisdom don’t exist in a vacuum.[13:51] The importance of questioning everything, and the information you’re given.
Common Advice for Protecting from Inflation
[14:20] Evaluating the Investopedia article “9 Asset Classes for Protection Against Inflation.”[20:15] How to evaluate the integrity of an information source.[21:00] How different economic philosophies approach inflation.[21:20] The number one question to guide your financial decisions.[23:20] Is gold a good asset to protect against inflation?[27:05] Gold is liquid, the problem is that it’s not always easy to sell. [28:40] What is inflation? Why does inflation occur?[29:23] Are commodities good a good hedge against inflation?[30:05] Why a 60/40 stock and bond split doesn’t work.[35:55] Historic average rates of return don’t guarantee that’s what you will earn.[36:30] What are REITs, and are they a wise investment during an inflationary period?[37:35] Investing in the S&P 500 during an inflationary time may not work out, and it wouldn’t be responsible to recommend. [39:46] Why real estate is a good investment when made under the right circumstances at the right time.[40:30] What are leveraged loans?[40:50] What are TIPS?[41:10] Does the Bloomberg Aggregate Bond Index work as a hedge against inflation?
Seeking Growth in All Things
[43:10] In order to make better financial decisions, you must seek more education.[43:28] Les McGuire and the Economic Value of Certainty[43:55] The importance of principles in your financial decision-making, and the principles that guide us. [47:10] “Is it going to keep up with inflation? Probably not. But is it going to do better than any other place that I have to store my capital where it’s still accessible? It’s better than anything we’ve found yet.”[48:16] The power of an entrepreneurial mindset to protect from inflation.[50:58 How to hedge against inflation if you’re not entrepreneurially minded. [52:35] Closing thoughts on inflation.[52:58] “You can be more in control of your financial destiny than just having to make decisions based on the sway and the whim of interest rates and inflation and all of the boogeymen on the financial horizon.”
Articles Referenced
https://www.investopedia.com/articles/investing/081315/9-top-assets-protection-against-inflation.asphttps://www.ssga.com/library-content/products/factsheets/etfs/emea/factsheet-emea-en_gb-sybu-gy.
Are you fascinated by the success stories of other entrepreneurs? Today, learn from Dave Menz, the Laundromat Millionaire, Dave Menz's inspirational story, learn the secrets of his success, and find out how you can overcome your own obstacles while building wealth.
https://www.youtube.com/watch?v=trhxZsJ0cdc
Tune in now!
Table of contentsLearning the Laundromat RopesCraigslist BusinessThe Beginning of the Laundromat MillionaireOn Rejection and PerseveranceBuying the Next LaundromatDelayed GratificationServing a CommunityRaising the Bar for All BusinessesA Better Family FutureGet The Laundromat MillionaireAbout Dave Menz, Laundromat MillionaireBook A Strategy Call
Learning the Laundromat Ropes
When you’re running a business, there’s textbook knowledge and boots-on-the-ground knowledge. Dave Menz is the kind of entrepreneur with real boots on the ground experience running a successful business.
[3:11] “I grew up really poor as a young kid, in Flint, Michigan. And I was never very good at school, and I didn’t see a traditional corporate path for me. It just wasn’t in my DNA… I didn’t know anyone that was an entrepreneur or a business owner. But I was always just, from afar, admiring people that were without knowing them.”
[3:40] “I don’t like limitations, I don’t like people or organizations or things telling me that I can’t accomplish x. I like to believe that if I spend enough time and gain the knowledge, and have the right mentors, and the right opportunities—good ol’ fashioned grit plays a part in that, for sure—that I can accomplish almost anything that I want to. Or at least I’m going to die trying.”
This mindset, Dave shares, is what he thinks called him to entrepreneurship. While he didn’t start his path as a business owner right away, he always had a keen interest in how businesses were operated. This prepared him for one day taking over his own. When Dave knew he was ready to own his own business, he and his wife began saving and spent 3 or 4 years preparing for what would be their first laundromat.
Craigslist Business
Dave actually found his first laundromat on Craigslist, after time spent researching the kind of business he wanted to own.
[11:45] “I just started down the path of due diligence with every business that I found on Craigslist or anywhere else. And every time… I came to a point where there was either a red flag or multiple red flags, that just said ‘this isn’t for you.’”
Dave views himself as being somewhere in the middle of analysis paralysis and reckless—he’s a great, detail-oriented researcher, but he doesn’t get too hung up on choices. He can recognize when it’s time to move on from an idea. With the laundromat, there were no red flags he could find, so he just went for the deal.
The Beginning of the Laundromat Millionaire
When Dave bought the laundromat for $85,000, it was losing money. But he also saw an opportunity in the business, and he knew he could do something great with it. All the nearby laundromats were in similar or worse condition.
[13:57] “I thought, well, I don’t know a lot about business, but I do understand the laws of supply and demand. And I know my community. I’ve lived here for a long time. It’s a thriving, growing suburb in Cincinnati. It doesn’t appear that any of these laundromats are serving this community well, and so if I fix it up and make it a nice place, seems to me like it should grow and should become profitable.”
Over the 4 years Dave and his wife had saved, they had $35,000. They used $20,000 as a down payment. However, they had trouble getting a bank to back them. In fact, they had 25 rejections. This prompted them to look for funding elsewhere, and they ended up getting an SBA loan through a local credit union.
After about 11 months, the first laundromat began making 3-4,000 a month.
On Rejection and Perseverance
The rejections Dave faced are almost a story of their own—one of resilience.
It’s time to showcase another client who’s building an Infinite Banking System for himself and his family.
https://www.youtube.com/watch?v=G6l1gkv09fg
Meet Wesley Smith, real estate investor, business owner in the digital marketing space, husband, and dad. To find out why he’s been using Infinite Banking for the past 7 years, and how it’s helping him in his business, investments, and his family… tune in now!
Table of contentsWesley's Entrepreneurial JourneyIntro to Infinite BankingWhy Infinite Banking?Why Multiple Infinite Banking Policies?How Wes Uses His Infinite Banking PoliciesInfinite Banking and Family DynamicsTeaching the Next GenerationWes’ Tips for Business OwnersBook A Strategy Call
Wesley's Entrepreneurial Journey
Wes’s career launched with his dad’s plumbing company, where he stayed for three or four years. After that, he realized he wanted to get out into the world. His friend had a door-to-door sales job in telecommunications, making a pretty good salary. Wes knew it was his next step.
[4:00] “I think that first sales job really solidified the fact that I wanted to be an entrepreneur… Just learning to be in that sink or swim environment from month to month to month—every month is a new month, right—is kind of what helps you learn what you need to be a business owner, in general.”
Over time, he learned he could also build some residual income from this work. Ultimately, this helped him get closer to where he wanted to be financially. But the entrepreneurial piece was still missing. This led Wes to invest in real estate. In order to advertise and maintain relationships with clients, Wes became proficient in all things digital marketing. His proficiency led him to open an agency around 2014 that caters to the tree service industry.
Intro to Infinite Banking
Wes stumbled into the world of infinite banking almost by accident. About seven years ago, whole life insurance came up in conversation between Wes and his younger brother. Wes was recently married, and his son was just born, so he knew life insurance was a good thing to look into. After getting set up with an agent, he bought his first whole life insurance policy.
[8:20] “We’re all just like conditioned to not even think about life insurance one bit until we’re married and have kids, then all of a sudden everybody’s beating their door down talking about life insurance to you.”
After paying a few premiums, Wes kept wondering where his premiums were going and what he was paying for. Although his agent answered his questions, he was still having trouble wrapping his brain around insurance. So he decided to do some research and learn everything he could about whole life insurance. This search led him to The Money Advantage, as well as some other sites, where he stumbled on the infinite banking concept.
Why Infinite Banking?
[9:50] “Once I found that [infinite banking concept], and I ordered Nelson [Nash]’s book, Becoming Your Own Banker… it was as clear as day what I needed to be doing for the rest of my life with all of my savings.”
Part of the reason infinite banking appealed to Wes is that it’s flexible and liquid. He had been in corporate settings, with a 401k, where his money was locked away and inaccessible.
[10:14] “This is nice to have this [retirement] account over here, but I can’t do anything with this money for the next 35-40 years. What am I going to do if I come across a real estate deal and I need access to 50 or 100 thousand, or whatever the case may be? You just really can’t do that with a retirement account like you can with infinite banking policies.”
Another benefit to infinite banking, as Wes sees it, is the ability to grow money even when you’re dormant or waiting for your next investment. The cash value of your policy puts you in a position of cash to jump on opportunities. But even when you’re waiting, your policy is growing and doing more than a typical savings account.
Want to get more done, quicker, easier, and more profitably? Then, it’s time to do less. Today, we’re talking with Ari Meisel, author of The Replaceable Founder, The Art of Less Doing, On Productivity, Idea to Execution about how to build a business that can run and grow without you.
https://www.youtube.com/watch?v=i3dQcZTuKtg
So, if you want 2022 to be the year you opt-out of the hustle and make consistent progress… tune in now!
Table of contentsThe Art of Less DoingAsynchronous ToolsHow to Get StartedMacGyver Style InnovationThe Ultimate KPIBeing a Better Decision-MakerThe 20-Minute Work DayConnect with Ari MeiselBook A Strategy Call
The Art of Less Doing
When Ari Meisel graduated college, he went into real estate development and construction in Upstate New York. His hours were grueling, and he was beginning to feel the effects of stress. At 23, Ari was diagnosed with Crohn’s disease, which is an inflammatory condition that is considered incurable. And in his journey to overcome this illness, he went from working 18-hour days to working one-hour days.
And while there were dozens of books on productivity at the time, there weren’t any on the market that addressed people who truly had little time in their day. The Art of Less Doing, Ari’s first book, was born out of the extreme restriction Ari had from his Crohn’s.
Essentially, the framework of “less doing” is to optimize, automate, and outsource. This made framework made it possible for Ari to continue to work and be productive. This idea has since grown into many other things, like The Replaceable Founder.
[5:48] “If you ask somebody… who works like a 9 to 5, what would happen if you had to leave the office by 4? You couldn’t work until 5. Most would just say they’d skip lunch, that’s usually the answer that comes back. But if you ask that same person, what if you only had an hour? It’s perplexing. It requires such a different way of thinking because those things still have to get done. But if you can’t possibly get them done in that hour, then who or what is going to do them for you? It’s that restriction that breeds innovation.”
Asynchronous Tools
Interestingly, Ari shares an interesting part of his strategy that has helped him put significant time back in his day. That is, the power of using more “asynchronous” tools and communication. It allows people to create more work-life balance and affords individuals control over their workday. However, many jobs are formed around synchronous communication. For example, in a typically 9 to 5 job, everyone is expected to come in at the same time, and communicate immediately, in real time. However, people are not synchronous, and have different rhythms.
Asynchronous communication, on the other hand, is like email. It allows each participant to take the information and control when they read and respond to it. This gives each person more autonomy, and the ability to construct their own work boundaries.
[8:30] “The technical requirements are not really what’s important. It’s really about a mindset, in terms of what you do.”
Ari shares that most people try to use texting synchronously. They type a message, send it, and can watch the three dots that signify the other person is typing. Of course, some messages are urgent, and require an immediate response. However, this can often prevent us from simply shooting off quick thoughts, which is what texting was designed to do.
Ari's Favorite Way to Communicate
Voxer, which is a voice app, is Ari’s tool of choice. He allows his clients to have unlimited access to him through Voxer, but each person communicates at their own pace. It’s like communicating through voice memos or messages, rather than a phone call. This makes it possible for short, quick conversations that may take place over a day, but ultimately don’t distract or take much time.
The problem with providing coaching is that often the times people need contact with thei...
Have you heard about Infinite Banking, but somehow feel left with a bad taste in your mouth and you’re not sure why? We are airing some of the biggest Infinite Banking objections most people have in regards to whole life insurance.
https://www.youtube.com/watch?v=imRoHqAgunk
So, whether you’ve heard that it’s trash value insurance, it’s more expensive than term, it takes years to grow your cash value, the returns are garbage, or that the insurance company keeps your cash value when you die … and these dangers you’ve heard about whole life insurance may have also sounded believable, we’ll talk about each.
Today, we’re walking through a specific listener question that outlines probably every one-liner objection you’ve ever heard about whole life insurance.
So, if you want to understand the facts, find out the truth, and make educated decisions about life insurance and your finances … tune in now!
Table of contentsWhy We’re Answering Infinite Banking ObjectionsClaim #1: IBC is a Gimmick Whole Life InsuranceClaim #2: Whole Life Insurance is Too ExpensiveOwning vs. RentingClaim #3: Whole Life Insurance is Built on Empty PromisesClaim #4: The First Few Premiums Are Agent CommissionsClaim #5: The ROI is GarbageClaim #6: The Cash Value Isn’t Included in the Death ClaimClaim #7: You Have to Borrow Against Your Own MoneyRecycling MoneyClaim #8: Just Because It’s an Established Product, Doesn’t Mean It’s a Good OneClaim #9: Only Those Who Don’t Sell Insurance Can Be TrustedClaim #10: Dividends Are a Return of OverpaymentClaim #11: Cash Value is a Scam“Paying Yourself Interest”Additional Resource:Book A Strategy Call
Why We’re Answering Infinite Banking Objections
Frequently on our podcast, we receive comments from people who have infinite banking objections. Either they don’t understand whole life insurance, or they have misconceptions of what it can and cannot do. Sometimes, these comments can be downright argumentative.
We get it, we do. There’s a lot of financial advice out there, and much of it is conflicting. We’re not in the business of convincing people who simply want to argue, however, we do hope that by answering some of these Infinite Banking objections, we can truly connect with people who are open-minded and want to understand.
Claim #1: IBC is a Gimmick
A common Infinite Banking objection is that it’s a tactic or gimmick to “sucker” people into buying whole life insurance. Typically, people who make this objection believe whole life insurance to be a scam. This, however, stems from a fundamental misunderstanding of life insurance, and why people can and do want life insurance. This idea also highlights a particular misunderstanding about what IBC can and cannot do.
We address many of these claims in our blog post, “Is Infinite Banking a Scam?” However, we wanted to touch on the idea here, too. IBC is not just a gimmick, it’s a concept that can be applied to how you use whole life insurance. Infinite banking, essentially, is a concept that guides the design of a whole life insurance policy, as well as the usage of leverage.
It is not a get-rich-quick scheme, a magic solution, or an infinite pool of money. It is a school of thought that one can apply to your money. Some of the primary principles of IBC are liquidity, leverage, and uninterrupted compounding interest. Whole life insurance happens to be an ideal asset for applying these principles and more.
[11:35] “Gimmicks don’t last.”
IBC, however, has lasted.
Whole Life Insurance
On its own, whole life insurance is an incredibly valuable asset. It’s permanent insurance that helps families create a legacy and leave an inheritance, while also protecting income and assets. Having a death benefit, for many people, is priceless. It provides for your loved ones when you're gone, by not only providing a financial cushion but actually giving families the freedom and time to grieve without worrying about finances immedi...
What does ancient Jewish wisdom reveal about successful family enterprise and leaving a legacy?
https://www.youtube.com/watch?v=YrX7GpP4__E
Today, we’re talking with Rabbi Daniel Lapin. He is the author of Thou Shalt Prosper—Ten Commandments for Making Money, and Business Secrets from the Bible. In this conversation, we’re digging into ancient Jewish wisdom for successful families, and how to navigate inheritance and family giving.
So if you want to do the most for your kids, get more people to listen, and do the most with your money… tune in now!
Table of contentsLife is like a Power StationThe Importance of GivingCreating a Financially Responsible FamilyHow to Have More ControlSteering Your Family UnitPrevious Discussions with Rabbi LapinAbout Rabbi Daniel LapinBook A Strategy Call
Scrolling Through the Scripture
Since we last spoke with Rabbi Daniel Lapin, he’s been further developing his Scrolling Through Scripture program. He designed this program to help people unpack the Hebrew text. The technology allows people with no background in Hebrew to start understanding the scripture, and understand it better.
[4:39] “In reality, it’s rather extraordinary that we live right now, in the very first time of human history where people who see themselves, and are viewed by their contemporaries, as educated and influential and knowledgeable, are completely ignorant about the Bible.”
The Hebrew text reveals answers to questions about the English translations of the Bible and provides necessary context. Because many people seem to have a sort of “amnesia,” as Rabbi Lapin puts it, about the cultural relevance of the Bible.
[9:53] “We’re not necessarily dealing with people who literally have had amnesia, but if you think of people who have come of age in the last 30 years, they’ve got the equivalent of amnesia, in the sense that the cultural bricks that have been put in place to build their personality and their relationships to the world in many ways are distorted and ineffective.”
Life is like a Power Station
In previous discussions with Rabbi Lapin, we’ve talked about several of his books, which share financial wisdom from the Bible. On one hand, we’ve discussed how making money is a natural progression of doing something of value in the world. On the other hand, we’ve also talked about the importance of giving first, before you even make a profit. Today, we want to talk about this more deeply with the Rabbi.
To this, Rabbi Lapin shares a comparison between operating a car versus a nuclear power plant. A car is typically very straightforward to operate. There’s some learning curve, but it’s not overly complex. So, if something goes wrong while you’re driving, like a crash, it’s instantaneous. On the other hand, there are dozens upon dozens of things to know to operate a power plant. And the system is so complex, you may not understand you’ve done something wrong until much later down the road.
[15:39] “Life is like the nuclear power station, not like driving the car. Which is to say, that many of the things you need to know about the safe and proper operation of your life do not show up immediately.”
It may be years before you realize that some of the decisions you’ve made aren’t the right decisions. Sometimes, it takes some time to figure out you’ve done the right thing, too. For example, if you decide to follow the “giving route” and your friend decides to follow the “taking route,” it’s possible that the taking route might seem like the more attractive option at the start.
The Importance of Giving
[18:40] “We are made, we are created, to operate. We are lubricated by being givers, not takers—we are corroded by being takers. It’s like running that engine without an oil change. We thrive by being givers.”
Rabbi Lapin raises an interesting point about the role of children in families. He acknowledges that as infants and toddlers, children can be very demanding.
Do you want to be rich, or do you want to be wealthy? There’s a huge distinction between being rich vs. wealthy. Understanding the difference is the missing ingredient you need to truly enjoy your money.
https://www.youtube.com/watch?v=y2X6mPMi9Q0
So, if you want to be wealthy, find out the one thing you need to create wealth that makes a real difference, not only in your life but also in generations to come… tune in now!
Table of contentsRich vs. Wealthy: What's the Difference?Make Your Money Do The MostWhat is Your Money’s Purpose?The True Freedom of Cash FlowSpending Your Time on Things That MatterGenerational LegacyRich vs. Wealthy: Which One Are You?My Upcoming Book
Rich vs. Wealthy: What's the Difference?
You might be wondering why I’m stressing this distinction, but there’s a good reason. If you’re rich, you can have a high standard of living. You can probably buy things that you want without thinking too deeply about the implications. Begin rich means you can do all the things that you wanted to do when you sought to be rich in the first place.
But there comes a time when you may realize that, as an entrepreneur, you have limitless earning potential. It’s well within your control to increase your income and put new business on the books, create new products and so much more. It’s at this stage that you may have a revelation of sorts.
[1:45] “If you make this money and you spend the money, there’s still something more. There’s something missing. There’s this part of you that realizes, well, you can buy all the things, but what then? What next? How do you make it really matter?”
The truth of the matter is that being rich simply means you have a high standard of living. That’s it. And that’s okay. But being wealthy means your money does the most for you.
Make Your Money Do The Most
When your money is doing the most for you, it’s actually operating within its own purpose and contributing back to your life. Wealth does more than increase your standard of living. It also creates cash flow and allows you to help other people besides you.
[2:45] “Just consuming leaves us feeling empty. I mean, there’s really only so much we can purchase.”
There’s only so much that money can do when you are consuming. The deeper, underlying desire of a “consumer” mentality is connection and purpose. That’s what people want. And it requires you to give a higher purpose to your money, rather than the act of consuming alone.
What is Your Money’s Purpose?
[5:00] “Really, what I think about when I think about money doing more for me is really, I have to conceptualize where can I put my money? What are the options for the things I can do with my money?”
Ultimately, there are only three things you can do with your money. You can spend it, you can save it, or you can invest it. Making more money seems like a good solution to many problems, but ultimately it’s only one piece of the puzzle. The missing component to many wealth-building journeys is a fulfilling plan for saving and investing that gives your money purpose.
So you must identify the purpose of your money. If you just want to have a bigger pile of money, you’re still going to run up against the feeling of frustration and emptiness that you might be feeling. Instead, you have to look a bit deeper to find your money’s purpose.
If you’re building time and money freedom, then you have the capability to have all of your needs met through cash flow from your assets. Then you can spend your time on what you choose to be doing. You can cultivate this through investing in businesses and assets that are sustainable and create cash flow.
The True Freedom of Cash Flow
This differs from having a high salary or earning a paycheck from the work that you do. Because the foundation of cash flow that you build from your savings and investments will actually allow you to choose how you spend your time.
Did you know that it’s possible to compress your annual goals and accomplish them in a day? With virtual events, all things are possible. Here’s your permission to blow the lid off your expectations for your income! Eileen Wilder, known as “The Queen of Stages,” is a master communicator, trainer, teacher, and advocate for growing (and monetizing) your personal influence for more impact, more income, and most of all—more fun!
https://www.youtube.com/watch?v=jQIaviWgBjA
So today, find out how you can accelerate your revenue, leverage your time, and scale your business in 2022… tune in now!
Table of contentsThe Beginnings of Accelerate My Revenue Combatting InsecurityStop Seeing Money as LimitedHow to Find Your ConfidenceThe Power of Virtual EventsKnow Your AudienceGetting “Big Numbers” with a NicheAbout Eileen WilderConnect With Eileen WilderBook A Strategy Call
The Beginnings of Accelerate My Revenue
Eileen Wilder began her journey as a pastor, and together with her husband decided to explore the online space. This entrepreneurial journey eventually led to Eileen’s first six-figure day. In a single day, she earned $108,000. This occurred about three months into her entrepreneurial journey and sparked her understanding of the power of speaking.
It wasn’t just an incremental journey; it was a quantum leap for Eileen and her family. Immediately, this spurred them to pause everything and try to figure out exactly what they did so they could replicate it. This led to them passing the million-dollar mark of revenue well within a year, and even exceeding that.
[5:38] “I just want to encourage you. 2021 was not great for many, many reasons, on so many fronts. I have disastrous things that happened in my [life]; you know health reasons, loss of [a] family member. However, the opportunity to impact more lives has never been greater, as a result of what happened in 2021. As a result of covid. shutting things down, the online virtual space is exploding, and virtual events are repeatedly, systematically, day-by-day are doing six and seven-figure days.”
If you have a message, or what Eileen calls a stirring in your heart, there has never been a better time to get that out into the world.
Combatting Insecurity
Finding exponential growth is possible, no matter who you are. However, it requires transformational thinking. Insecurity, self-doubt, and low confidence can all get in the way of the message you have to share with the world.
[7:45] “Brendon Burchard said, ‘Your internal insecurity is not market reality.’ And oftentimes what’s happening internally in our mental mind drama, the mind movies we have, and the stories we’re telling ourselves…is actually not the market reality. The market is trading billions of dollars every day–products, programs, services. And get this: they’re inferior to what you offer.”
The first step to your journey of success is to stop allowing your internal insecurity to sabotage your potential impact on the world.
[8:44] “There’s more than enough for all of us to have more than enough, with more than enough left over.”
Stop Seeing Money as Limited
The next hurdle to combat is just as Eileen says above. It’s easy to believe that money is finite, however, the world simply does not work that way. Money is an exchange of value, and if you can provide value, abundance will follow. If you improve someone’s life, their life grows and so does yours.
Don’t fall into the mental trap of limitation. If someone gets more money, that does not mean there’s less of the pie available to you. It can actually raise the bar for everyone, and what someone earns is simply a fun fact. Another person’s earnings do not have a bearing on your own earnings.
You also likely won’t serve everyone with the message you have to offer the world, as Eileen points out. That doesn’t mean your income is limited, and in fact, it can even create more freedom for you to be yourself a...
Do you want to accumulate reserves and investible capital where it’s safe and liquid, so you have the cash to invest in the widest range of circumstances? Come behind the scenes as we talk about our Marshall Family Bank in real-time.
https://www.youtube.com/watch?v=wmDrsECWJ8Y
Today, we’re talking about our recent whole life insurance policy conversion with a 1035 exchange. We’ll discuss the original policy and what prompted the conversion. We also cover how we structured the new policy, what riders we added and why, and our updated cash value, dividend, and death benefit performance.
So, if you want to see exactly how we’re growing our family bank to continue today… tune in now!
Table of contentsHow We Started the Marshall Family BankThe First PolicyWhy the 1035 Exchange?What is Demutualization?How Does a 1035 Work?The Old vs. New Marshall PolicySo Why a 1035? Execute TodayBook A Strategy Call
How We Started the Marshall Family Bank
The Marshall Family bank had to start somewhere, so we want to start by sharing our beginnings with you. Originally, we gravitated toward whole life insurance because we were between opportunities. We were also seeking a safe place to store our cash. This was about 9 years ago.
Liquidity was one of our top priorities because we were saving almost 50% of our W-2 income in precious metals, which lacked the liquidity we needed. We still have precious metals in our portfolio today. However, after saving such a significant portion of our income, it was clear that better liquidity would be beneficial. This compounded with the realization that we needed some diversity in our assets since precious metals rise and fall in value.
It was about this time when infinite banking crossed our radar. We were searching for more liquidity and safety. The idea was appealing because we recognized the long-term benefits of a cash flow system.
[2:55] “This was when we really sunk in our teeth to the idea that whole life insurance can be a place to store cash, it can be specially designed as infinite banking to have the capital reserves, grow cash value, pay dividends because it’s a mutual policy, and also have a death benefit that transfers your legacy. And we’ve had an evolution, over the course of our life, of recognizing we also need to have human life value, which means having as much death benefit as we can have.”
The First Policy
With our first policy, we didn’t yet have the long-term vision we have now. Sometimes we didn’t pay the full premiums, and we added PUAs where we could. However, we are thankful we got started at all, rather than waiting. It still helped us to be in a better position than we would be without it. In fact, we used the policy frequently while we had it.
This policy was a $10,000 annual premium, insuring Lucas. We used it for several loans over the years, including our business and real estate investing. We’ve paid these loans back, and it’s been a great storage tank for the capital we have.
In the time since we started this policy, we’ve learned a significant amount about policy design and structure. It’s because of our knowledge that we decided to do a 1035 exchange of our first policy into a new life insurance policy.
Why the 1035 Exchange?
One reason that whole life insurance can be a great tool for wealth storage and building is that it’s flexible. If your income increases, you can get another life insurance policy and keep your others intact, effectively building a portfolio of policies. This is one reason we thought it would be interesting to have this conversation since we did a 1035 exchange instead of simply starting a new policy.
[8:40] Bruce: “Very rarely should a person 1035 a whole life policy to another whole life policy—unless they have specific reasons for doing it.”
Some of the reasons people 1035 whole life insurance into other whole life insurance are:
To receive better service from a new life insurance c...
How do you get life-changing transformation and master the game of business? Joe Evangelisti has built an 8-figure empire and has helped hundreds of entrepreneurs and business owners to cross the 7, 8, and 9-figure mark. Interested in being the next 7-figure business? Don't miss this opportunity to learn from one of the greats.
https://www.youtube.com/watch?v=_d_IsQBXhtM
To find out how to pivot to unlock your true potential, put aces in their places, and develop a winning culture… tune in now!
Table of contentsLife-Changing TransformationMindset TransformationHow to Build ConfidenceCreate a 7-Figure Business by Getting a LifeDon't Be the ArsonistHow to Get Started Building a TeamHow to Be a Team LeaderWhat Does it Mean to Pivot?The Power of Aces in Their PlacesFostering Company CultureStrong Leaders Create Strong LeadersHow to Live Life NowConnect with Joe EvangelistiAbout Joe EvangelistiBook A Strategy Call
Life-Changing Transformation
Joe Evangelisti is a master of transformation and doesn't let the circumstances drag him down. In fact, his early business experiences have primed him to find opportunities in what others might consider dire circumstances.
[4:00] “I was lucky I got into real estate in 2007, which a lot of people were in real estate back then. It was kind of a weird year to get involved in it, but it taught me a lot. Because we thought we were going to hit the ground and flip dozens of houses and make tons of money, and it couldn’t have happened any differently, right?”
Joe got into the real estate market with his own cash and was already two or three properties deep when the market crashed. Yet, he credits this time as teaching him valuable lessons in how to pivot and course-correct his investments in order to make lemonade out of lemons.
[5:00] “I think early on in my career, the first five or six years, it was just a matter of putting all of my time and effort into hustling, grinding, and figuring out until I nearly had a burnout in my early 30s and realized hey, this isn’t the way to do it.”
Mindset Transformation
It was this shift in mindset that Joe credits with helping him build the multiple successful businesses he has today. It's the same mindset he's helped others adopt to build their own 7-figure businesses and beyond. First, he recognized that there doesn’t have to be an endless grind with no satisfaction. Secondly, he learned that you must also be the kind of motivated person that can find and create solutions no matter the odds. Some of the most successful entrepreneurs Joe can identify have been through some of the most terrifying financial scenarios, and come out on top because they’re able to see it through and course correct.
[7:20] “The characteristic that I see in real winners is the fact that they just don’t ever stop. Right? They don’t ever give up, they just keep pushing no matter how bad things are.”
How to Build Confidence
[8:10] “One of my strong unique abilities is the ability to get people to recognize not only their authenticity but the value they bring, right? I think that the challenge that so many entrepreneurs have is they’re trying to be somebody else. They’re trying to be somebody they’re not. When you can recognize your own brand, your own authenticity, what your own value is, what you can bring to the table, what is the byproduct of that? The byproduct of that is confidence. When people give up, what they’re lacking is confidence.”
Joe asserts you maintain your confidence by maintaining your identity because confidence comes from authenticity. And all people have an innate ability to recognize authenticity. It shows when you're donning a facade, or being someone you're not. Joe even goes so far as to say that vulnerability can help you be more authentic. The problem is that so many people are afraid of being open and vulnerable. If you want to create real, human connections with clients, business partners,
This week we have the pleasure of joining James Neathery on his podcast, Banking with Life.
https://www.youtube.com/watch?v=VTr7vMxoyQU
If you want to better understand the importance of life insurance as a foundational tool, and how it integrates into a family banking system...tune in now!
Show Notes:
0:00 James Neathery introduces The Money Advantage team: Rachel Marshall, Lucas Marshall, and Bruce Wehner.
3:00 The more quality information about infinite banking and finance out there, the better. Separating the noise from the truth.
5:40 Rachel shares how The Money Advantage team met Nelson Nash, author of Becoming Your Own Banker.
8:15 Lucas touches on the importance of the IBC and life insurance industry sticking together and applying the principles of legacy to create a broader sense of community.
11:30 James says. “Every business has a ferocious need for capital and cash flows.”
12:15 What is family and heritage, and how does money impact that? How does it contribute to generational wealth?
12:55 How the Marshall family implements a family banking system, and how this system has adapted over time.
14:30 How do you ensure that your legacy and money are used in accordance with your family values?
16:30 The benefits of a family banking system over time.
19:30 The benefit of being surrounded by like-minded, entrepreneurial people.
20:20 Where to store your capital for safety and liquidity.
21:25 What is a leveraged-up death benefit, and why is it so profound?
24:15 Bruce shares why he decided to open a life insurance policy on his father.
28:25 What does it mean to have a family enterprise, and how can you be successful?
29:15 What is the “rugged individualist” in the financial industry? How do you move toward a family-focused financial system?
33:15 IBC in theory versus in practice.
35:00 Infinite banking starts at the idea level: you have to reconcile the idea with your finances first.
38:15 The reason you want to step into the role of the banker is that it gives you control. Control gives you options.
40:15 The power of how Nelson Nash taught IBC.
41:50 How people form their opinions on whole life insurance.
45:10 How do you handle people who challenge your understanding or beliefs?
48:30 “Most people’s understanding of life insurance is based on someone else’s misconception.”
49:45 The importance of a solid financial foundation.
53:00 Being available versus being on demand.
54:00 Working with ideal clients.
55:45 The Fed doesn’t understand banking.
1:03:20 Closing thoughts.
Book A Strategy Call
Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help! Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.
Where do you start in navigating a clear path to impact and income? How do you make money online?
https://www.youtube.com/watch?v=ipnicQQZvkk
Brian Dixon says to start with your people. He’s the marketing mentor and business coach who helps you get the clarity to grow your business.
So if you want to create a sustainable business, market with confidence, and make money authentically … tune in now!
Table of contentsStarting Your Entrepreneurial JourneyStart with Value to Make Money OnlineYour Past Can Direct Your FutureBrian’s 3 Steps to Finding PurposeThe Power of a Growth MindsetConnect with BrianAbout Brian DixonBook A Strategy Call
Starting Your Entrepreneurial Journey
One of the great things about entrepreneurship is that you can start anywhere, with anything. The world has need of many types of people. Brian Dixon's journey began with music. Aside from writing and performing music, Brian learned how to cold-call venues… and he enjoyed it.
[4:41] “That for me was like my first entrepreneurial journey; [it] was just being the guy that went and got the gigs for the bands. And then I’m like, ‘Wow, people come to the show, so let’s sell them something.’”
Brian’s music journey helped him become a better entrepreneur and taught him the skills needed to provide value to his people. For example, playing gigs helped him learn what kind of merchandise people wanted. This is how you grow a business: find something you love, and learn how to market and grow that into something that creates value for the audience that loves and wants what you offer.
Start with Value to Make Money Online
The key to creating a valuable online business is to do or create something that people want. It’s the secret to all businesses. Money follows value because money represents value. One of Brian’s early businesses began as a way to help the people close to him. In fact, it wasn’t even designed to be a business. He just saw a need for something in the world and made it.
[10:32] “My wife and I took spring break that year and instead of going on vacation, which was well earned working with middle school kids, we decided to stay for a week, for all of spring break, pull ourselves up into the video studio at the school, and we filmed a DVD. And it was called ‘The Internet and Your Kids: Healthy Habits for a Safe Online Home…’ I didn’t even think it was a product yet…I just want[ed] to help these families.”
Brian and his wife simply made the DVDs because they saw that it would help relatives, parents of students, and the students themselves. They sent the files to a print-on-demand company, ordered a few for the classroom, and next thing they knew they had made their first $800.
Your Past Can Direct Your Future
[16:06] “I just fell in love with the idea that I have a message that matters, but you have a message that matters. And I can make a bigger dent in the universe, right, I can make a bigger impact in my lifetime when I help other people figure out how to take the message out of their heart and out of their head and get it onto the web.”
The answer to your purpose, Brian believes, is to look to the very things you or your loved ones have overcome, because chances are there are other people with those same struggles who need to get where you are.
[18:56] “I’d say you have to mine your past for diamonds. You look back and you go, what is it that I have overcome? What is it that I have struggled with, or somebody that I love and know has struggled with, and I helped them?”
Brian’s 3 Steps to Finding Purpose
When Brian helps clients find their own voice and business, he uses a three step process to unearth their message. The first step is to identify the pain points that you have experience solving. Then, you find the promise, or the promised land. You might be there right now. As Brian puts it, the ‘you’ who was experiencing the pain in the past wants to be where you are now,
Why is financing with Infinite Banking better than paying cash?
https://www.youtube.com/watch?v=ZzQ73xBl2TE
Today, we’re answering a listener question about the Infinite Banking Concept. And we're going back to Nelson Nash's book, Becoming Your Own Banker to explain the concept.
So, if you want to better understand the Infinite Banking Concept and how it helps you make more effective financial choices that put you in control… tune in now!
Table of contentsAnswering a Listener QuestionHere’s Dave’s original question:The Short Answer to Financing with Infinite BankingWhat Are the Options for Financing a Car?Why Use a CD?Why You Wouldn't Want to Buy a Car With Cash?The Math of CompoundingIs Financing with Infinite Banking "Paying Yourself Interest"?How is This Method Not a Wash?What Insurance Has that Cash Alone Does NotBook A Strategy Call
Answering a Listener Question
We love to see what our community is saying, and answer any questions. Recently, we had an insightful question from a listener named Dave. Dave's done the homework and read up on Infinite Banking. His question gets to the heart of the concept, so we wanted to dedicate some serious time to answering it.
Here’s Dave’s original question:
"...I do have a question regarding the chart and explanations on page 41 where Nelson Nash discusses the different ways to purchase a car. Methods A, B and C are very familiar to me, but method D and E are new concepts to me. It never occurred to me that I could purchase a car using the Bank C/D method, which shows to be superior to paying cash. Since this is the banking "concept,” but just using someone else's bank I think it is important that I understand how this works and I am just not quite grasping it. I think it would be helpful to me if you could explain and provide examples of how the Bank C/D method works and why is it more effective than paying cash. I can see from the chart that it is obviously better, but I just don't totally understand why. Somewhere I am missing something in my understanding of this concept and I'm not learning it very well from the book. Maybe I am just not seeing the math the same way and it doesn't seem to be explained very well in the book, at least to me. If I store money in a bank and earn interest, but take out a loan from the bank to make a purchase isn't it a wash? Where is the leverage and how does that benefit me? Is it because the interest rate on the C/D is higher than the borrowed interest rate? I know that you have recently been answering questions on your podcast and I hope you will find it worth your time to address this one. It seems to be at the center of how this concept works and once I understand that I think I may have a breakthrough in my understanding. Thanks for your time and effort.”
The Short Answer to Financing with Infinite Banking
Dave’s question is a great one that really addresses why someone would use infinite banking. We think, first of all, that what Nelson Nash did with his book is create options. There are different reasons, both personal and economic, to finance a car with each of his examples. However, leveraging a life insurance policy is often not considered among all the options. Primarily for the reasons that Dave brings up in his question–people aren’t familiar with it, and it can seem complicated.
The short answer is that using life insurance to fund a car allows you to take advantage of uninterrupted compounding. Because while you may pay interest on a loan, you’re also earning interest on the full value of your cash value. This means that you can both take advantage of capital without losing the momentum of your accumulation account's ability to earn interest and grow.
[8:52] “Nelson used to always talk about this: It’s not about the rates of return… it’s about who’s controlling the banking function.”
The person who controls the banking function has the flexibility.
How do you raise confident, successful, happy children who use their uniqueness to contribute the most in the world? What kind of family leadership do you need, so that you build strong families? And what is the secret to generational family wealth, really?
https://www.youtube.com/watch?v=YUGCz2R830g
Parenting is one of the most complex tasks we will ever face. It can feel like a mountain of skills our kids need to gain—everything from arithmetic to writing essays to public speaking to driving to finding their passion, choosing a college, a career, and a mate, to making and managing money, and eventually raising their own family.
Families with money have compounded challenges. That’s because, often, the rising generation is overlooked, falling into the shadow of silence.
We’re talking with Keith Whitaker, an educator who consults with leaders and rising generation members of enterprising families. The last time we had him on the show we discussed his book Complete Family Wealth.
Today we’re exploring the question: how do I parent well and teach my children to become wise stewards of wealth, so that money doesn’t corrupt them?
So, if you want to help your children to make good decisions as they decide on a college major, choose a career path, find a partner, parent their own children, use and make money, and ultimately serve as the bridge to connect families across generations, you need to hear this one thing. Tune in now!
Table of contentsGenerational Family Wealth: Qualitative WealthThe Three Stages of LifeUnderstanding Your ChildrenExamining Your Ideas About MoneyGenerational Family Wealth: The Voice of the Rising GenerationBook A Strategy Call
Generational Family Wealth: Qualitative Wealth
There's quantitative wealth, and then there's qualitative. The former is money—what most people think of as wealth. However, when looking at a unit, in the context of generational family wealth, it's critical to examine qualitative wealth. In other words, we must consider "human capital" as a part of the family's wealth.
Human capital is comprised of personal strengths, passions, and skills that every human possesses. Knowing and fostering human capital as a part of the family wealth system is crucial. This is what helps our children to become well-rounded, capable, and confident people. People who can thrive and carry on the family legacy, for true generational family wealth.
So how do parents help their children grow their human capital?
Human Capital
[5:28] “Even though the context is family, the focus is on individuals, and that goes back to another principle we have. Our own thinking about family wealth is that really great families or healthy families are made up of great or healthy individuals. So sometimes, especially in the context of large financial wealth, people have a tendency to focus on the family. Having a hundred-year family plan, having a hundred-year constitution, talking about family values–-all of those things are important, but they really pale in comparison to the importance of helping each individual in that family grow and be as healthy as strong, as confident in him or herself as can be.”
Without fostering individual confidence and capability, you can have all of the documents and mission statements in the world, and they will simply be words. You must raise children who feel heard, and can develop their own unique abilities in a way that serves the family's greater purpose.
Keith suggests you ask yourself what good parenting is? This question is important regardless of wealth because every family involves parenting. Only then can you layer on the aspects of parenting with wealth involved.
The foundation of this conversation is good parenting, and what that looks like to you. Then you can introduce special considerations that come with significant wealth. These components combined allow you to raise children who are confident and capable. And,
Many people believe that money is the root of all evil. But is money really evil? Is the love of money evil?
https://www.youtube.com/watch?v=a1zVsI6Inpg
Today, we’re taking on a topic that creates so much confusion, tension, and challenge for people. We’re talking about money, the love of money, and the real root of all evil.
And we’re revealing how this one huge mistake in our thinking literally causes all the money problems we see in our own life and the world.
So if you want to dig deep into what the love of money is—and what it isn’t—so that you can flourish in the right relationship with people, yourself, and with God… tune in now!
Table of contentsWhat Does the Bible Say About the Love of Money?Understanding the Context of Money in the BibleIs This “Prosperity Gospel”?Reconciling What We Know with What We DoIs Money the Root of All Evil?New Living TranslationThe MessageThe Amplified TranslationThe Love of MoneyWhy “Loving Money” is EasyMoney is a ToolParting Thoughts About the Love of MoneyBook A Strategy Call
What Does the Bible Say About the Love of Money?
Earlier this year, we had special guest Rabbi Daniel Lapin join us to talk about his book Thou Shall Prosper. We thought his biblical wisdom about money was so profound, and we actually had him join our show two more times this year. However, we also received many comments about biblical interpretation. We thought it would be a good idea to break down what we interpret in the Bible.
As we lay the groundwork for this discussion, we think it’s important to point out that English-speakers are reading a translation. We don’t have the benefit of reading the text in its original language. As such, there are many modern translations we can seek, with different interpretations. Then, on top of that, we have our own human interpretation of the texts we read.
The Money Advantage is not a ministry, but a business. As entrepreneurs, and particularly as ones in the financial, we talk about money. Wealth can be a taboo topic in many religious circles, and in an effort to talk about money from all angles, we want to touch on biblical wealth. Whatever you believe, we think this topic can help to assuage shame or guilt around money.
Understanding the Context of Money in the Bible
Many people draw their feelings and philosophy on money directly from the Bible. When you’re building and protecting your wealth, it’s important to have a solid understanding of things so that you can make the best decisions possible. Without it, you’re financially coasting.
We think this same logic can apply to your understanding of money in a biblical sense. If your entire philosophy of money is Biblically centered, it makes sense to dig deeper. The more you can understand the cultural context and original meaning of the text, the more concrete your understanding can be.
Is This “Prosperity Gospel”?
Prosperity Gospel is a term that often comes with negative connotations. Wikipedia defines this as:
A religious belief among some Protestant Christians that financial blessing and physical well-being are always the will of God for them, and that faith, positive speech, and donations to religious causes will increase one's material wealth.https://en.wikipedia.org/wiki/Prosperity_theology
This, however, is not the reason that we find value in looking at the Biblical context of money. We believe that wealth is something accessible to all and is directly proportional to the amount of value you provide others, and the number of people you provide value to. However, we live in a society that often vilifies wealth, which can cause negative feelings to fester within us all.
However, based on our own understanding of the Bible, we see that wealth is not “evil,” or something to be despised. This does not, however, mean that we advocate that the wealthy are favored by God more than others.
We are proponents of obtaining wealth through peaceful trade,
How do you build wealth that lasts? Today, we’re talking with Jack Gibson, an international, serial entrepreneur who’s built multi-million dollar enterprises, twice. So, if you want to utilize the secrets of the wealthy to build indestructible wealth with multiple streams of income, and instill the entrepreneurial spirit in your children… tune in now!
Last time we had Jack on the show we discussed The Beginner’s Guide to Buying Your First Property.
https://www.youtube.com/watch?v=fBLo8vgNHbE
Table of contentsSuccess and FulfillmentFixing Your Money Mindset for Indestructible WealthThe Stages of Building Indestructible WealthInvesting in a Cash Flowing BusinessInvest in Non-Speculative AssetsSave and Invest in Speculative Assets
Success and Fulfillment
Wealth is not a guarantee, and even those who have money may not be truly wealthy. The thing about wealth—true wealth—is that it has more to do with the lasting quality of your money than the amount of money you have. Can your wealth weather tough economies? Can you rebuild your wealth, if lost? How long will your wealth last? These are all questions that can help you determine whether or not your wealth is indestructible.
Jack Gibson, helps entrepreneurs to build meaningful wealth with staying power. In other words, he helps people to understand that in order to have true wealth, one must protect and insure that wealth.
[6:25] “We have to be totally present to the fact that our money, our wealth, could be taken from us. Or it could be lost, or it could be stolen, or it could get eroded. All of those things are entirely possible.”
Having a sum of money can go a long way in protecting your livelihood, but your mindset and ability to create money and wealth are far more valuable.
Indestructible wealth, truly, begins with your mindset. A resourceful and entrepreneurial mind are key, because they can help you replenish your stores when the unexpected happens.
[7:55] “You could take everything away from Jack Gibson right now. And although I really hope that doesn’t happen… I feel you could drop me off at any town with a hundred bucks in America, and eventually, a decade later, I’ll be coming out a multi-millionaire again.
Fixing Your Money Mindset for Indestructible Wealth
[10:29] “Whatever you believe that you can or you can’t do, you’re right… What are some of the beliefs that you’ve been given, that maybe you’re not even aware of, that could be preventing you from creating wealth…?"
Take popular media–how many movies have you seen where the villain is rich and evil? In our conversation, Jack cites Titanic as being one of the more insidious examples. While it may be a great movie, it does almost too good a job of painting the rich as careless, calculating villains.
This mindset can keep so many people not just from amassing wealth but from creating indestructible wealth. After all, who wants to become the villain?
[12:10] “I think that for my platform, the more people–good people–that I can teach how to make great money, then I know that they’re going to do really great things for other humans with that.”
Money Isn't Evil
While we may be steeped in a culture that loathes the rich, money itself isn’t evil. Money is an idea, and simply amplifies who you are as a person. And you can't ignore that money can do a lot of good, too. This is why it's important to be charitable, for example. But if you don't do acts of service now, is money going to change anything?
Jack shares his own story about why, regardless of your wealth or status, it's important to practice and live the habits you wish to cultivate now.
[15:00] “What I teach is just start exercising that muscle, because as you continue to grow and flourish in your businesses and your investments, and growing your money, then that’s just going to amplify who you already are and the way that you’re being.”
Jack shares that he was able to give $40,
What is a Modified Endowment Contract, and what does it have to do with life insurance?
https://www.youtube.com/watch?v=qXI-iOZylhU
If you're using Infinite Banking as a savings tool, you want to avoid having your policy become a MEC. But what exactly are Modified Endowment Contracts? How does it change the taxation on your life insurance policy? Why does it exist? And when might you want to use a MEC?
If you want to know more about how to use Infinite Banking to accomplish your financial goals… tune in now!
Table of contentsDefining the Modified Endowment ContractHow MECs WorkThe Tax Consequences of a MECThe 7-Pay TestIs There An Upside to Having a MEC?Book A Strategy Call
Defining the Modified Endowment Contract
There are a lot of great reasons to have a whole life insurance policy. This includes tax advantages, uninterrupted compounding growth, and income protection. It’s the ideal vehicle for an infinite banking strategy–however, you can lose these benefits if you over-fund your policy.
When you put too much money into a whole life insurance policy, it becomes something called a Modified Endowment Contract. When a policy becomes a MEC, it loses its tax advantages. The IRS created this legislation to cut down on what they deemed taking advantage of life insurance.
The original purpose of life insurance's tax advantages was to incentivize people to buy insurance. That’s because life insurance can protect families financially from a loss of income during a difficult time. This also prevents the government from having to commit tax dollars toward supporting these families. The government first implemented these benefits with a specific purpose in mind: to be a win for families. They didn't create the advantages as a loophole.
In order to protect the original intent of life insurance—to provide a death benefit—the IRS decided that if policyholders didn’t follow certain guidelines, it would functionally be classified as an investment, rather than an insurance policy.
How MECs Work
Let’s consider an example. Say you want to buy a life insurance policy with a $1 million death benefit. The least you can pay, or the “floor," is going to be term insurance. This is the cheapest premium you can have, however, you only have the temporary death benefit and nothing more.
What you can pay on a million-dollar policy, however, is a sliding scale. You can have different life insurance products or structures that change the premium. For example, you can have whole life insurance, structured in a few different ways. Typically, the higher your premium, the more benefits you get, including living benefits like a cash value account.
A whole life insurance policy structured for infinite banking is at the top of this scale. Largely because of all the living benefits. Tax favorable growth, uninterrupted compounding interest, tax-free access via policy loans—these are just a few benefits, on top of your permanent insurance.
The MEC rule creates an official “cap” to the sliding scale, preventing people from paying beyond the maximum, as they were prior to the late 80s. Now, if you go through the pay ceiling, you still have life insurance, but it will no longer have the same tax treatment.
The Tax Consequences of a MEC
With a MEC, your death benefit still passes to your heirs tax free, however, your living benefits no longer receive the same tax advantages. If you take a policy loan with a MEC contract, you will have to pay income taxes on that money. Additionally, if you withdraw money from your cash value before age 59 ½ you will be subject to penalties.
A MEC policy gets similar treatment as a 401(k) or an IRA. If you are choosing to use whole life insurance primarily as a savings tool, or as an infinite banking policy, it’s important that you don’t MEC your policy.
The 7-Pay Test
In order to determine what policies are a MEC, the IRS uses something called the 7-pay test.
Want to build a work from home business, and scale to create the life you dream of for your family? Would you like to do so without being a salesy weirdo? Today, we’re talking with Martha Krejci, who made her first million in 6 months in business by working from home.
https://www.youtube.com/watch?v=roEwVrkfHlg
Now, she’s a business growth strategist who helps other work-from-home moms make millions.
If you’re looking for the secret sauce to scale your business today, want to learn a sustainable and repeatable system, convert people into raving fans, and make simple social media posts that create leads… tune in now!
Table of contentsHow Martha Started to Work from HomePrepare Yourself for SuccessHow to Pivot Your BusinessProtecting Your Energy and Building CommunityThe Problem with AdsReverse-Engineering the Sales FunnelThe Secret to Live VideosWork from Home and Do What You LoveWhat is the Ultimate Scaling Tool?Links MentionedAbout Martha KrejciBook A Strategy Call
How Martha Started to Work from Home
[6:00] “On paper, I was the only breadwinner of my family.”
Yet Martha took the entrepreneurial leap anyway. She describes herself as always having felt the pull to be an entrepreneur. However, it wasn’t until she had an epiphany while raising her daughter that she followed the entrepreneurial call. One day at work, she received a video of her daughter taking her first steps. Her first reaction was joy. Then her next thought was that her daughter was walking toward a phone, instead of her mother.
This inspired her to take the leap to work from home virtually overnight. Despite supporting her husband, her child, and her in-laws who had recently moved in. Within the first month, she was matching her income at her previous job and continued to grow from there.
Prepare Yourself for Success
[11:40 “My favorite thing is the struggle. Is that weird? A lot of people like to illuminate the success, my favorite thing is illuminating the struggle...Let’s normalize it. Let’s normalize that that’s what’s necessary…[Success is] not a promise, you have to do the work, right? You have to make sure that you’re ready for this success.”
The reason you have to be prepared for success, as Martha shares, is because quickly after you find success, all of the negative stories you told yourself about yourself are going to start popping up. Your success is going to dredge up your internal baggage, and can derail you if you’re not prepared to handle it.
How to Pivot Your Business
Martha’s first agency was an SEO agency, and she joined the chamber of commerce at about $200 a year and began attending events. Soon enough, she was leading training sessions for business owners. Yet business owners often don’t have the time to implement these things. So if you show authority when you’re training, it’s likely that those businesses will want to hire you.
[13:45] “Since then, what we’ve done is we’ve just bobbed and weaved. So we’ve seen where needs were. I guess our formula—and I’ve never really shared this before—our formula is: What do people need, and what do we enjoy doing for them?”
Once Martha’s agency identifies what her clients need and what she enjoys doing for them, she’s able to merge those things. This way, she’s not ever pigeon-holing herself and her agency is positioned to pivot.
[15:40] “I think that’s where a lot of the business death comes from, is just simply being afraid to pivot. Because pivot is growth.”
Protecting Your Energy and Building Community
[20:50] “I don’t ever think we should be doing everything anyway. So what I teach is, you know, you essentially work 5-10 hours a week once all your stuff is set up. So the ‘doing everything’ is a lot of wheel spinning in my opinion. And some would say that it’s strategic and that you’re throwing spaghetti at the wall and you’re gonna see what sticks, and that sort of thing... That’s fine if you are a masochist.
“But for me,
Like a business, churches and other non-profits have a need for financing. Today, we’re discussing options to keep the church financing in-house.
https://www.youtube.com/watch?v=cSnti9l_C40
So, if you want a strategic financing strategy that guarantees your church or other 501(c)3 would never lack the funding to accomplish the most important mission of all… tune in now!
Table of contentsFunding Not-For-ProfitsInfinite Banking Concept for ChurchesWill Infinite Banking Work For Every Not-For-Profit?You Don’t Need to Operate on a Razor-Thin BudgetWho Should Be Insured for Church Financing?Book A Strategy Call
Funding Not-For-Profits
If you’re running a church or other not-for-profit business, chances are you need funding. Funds allow you to create more good for your community and accomplish what is likely a big mission. Without the proper funding, especially consistent funding, those goals can seem out of reach.
Donations are a common source of funding for churches, as well as bank financing, yet relying solely on these methods of financing can be unreliable. If you’re seeking to achieve big goals and take care of a broader community, control of financing is crucial.
Fortunately, you can use Infinite Banking for church financing. However, in a church or other not-for-profit sector, it’s likely that much of what you do must include collaboration. In other words, there has to be some consensus. This can mean educating your peers and other church leaders, as well as discussing how privatized banking can benefit your church or not-for-profit. (Note: We recommend having your board or administration speak with a financial professional, as the conversation can be complicated.)
Infinite Banking Concept for Churches
Why might a church want to use infinite banking? If you’re considering the Infinite Banking Concept for your organization, this is a great question to ask. For many institutions, we believe the answer might be that funding a life insurance policy allows you to save money and finance projects without a third party, such as a bank. This can add more stability to your organization’s financing, beyond the tithe, donations, and banks.
“If you have large reserves, and you’re trying to store that cash as effectively and efficiently as possible so it can do the most good for you, then infinite banking would be an ideal storage place.”
That’s because the cash value of a life insurance policy allows your cash to work as hard as possible while you’re waiting to use it. Not only this, but the death benefit of the policy will help you plan in the long-term for your church or organization. When that benefit is paid out, it can be used for ongoing financing for the church or organization.
Will Infinite Banking Work For Every Not-For-Profit?
If, however, your organization does not have a lot of cash reserves or has a lot of debt, you may not want to start a policy right away. That’s because you must still have a way to fund the policy, which is often with cash reserves. The first step to building a policy for your organization is to figure out how you will finance the policy.
Similarly, if your church has significant debt and you are struggling to pay off that debt, it might not be the best decision to open a new policy. An Infinite Banking policy requires debt management, and it’s not advisable to use a policy loan to pay off another loan. Working with an advisor can help you determine the best strategy for managing your organization’s finances and debt.
You Don’t Need to Operate on a Razor-Thin Budget
“Just because you’re non-profit doesn’t mean that you should not be financially responsible and that you shouldn’t be profitable.”
There’s a myth that not-for-profit companies should operate on a razor-thin budget because they’re a public service. However, in our conversation with Kris Putnam-Walkerly, we broke that myth wide open.
The reality is,
Want to raise children with responsibility and teach them how to become contributors? Looking for ways to make your capital work harder? Today, we’re talking with Gary Boomershine, CEO of RealEstateInvestor.com about creating a family economy and private lending for real estate.
https://www.youtube.com/watch?v=MOm6ZYP_4xg
If you’re an investor or business owner who wants to create the life you envision… tune in now!
Table of contentsWhat is Private Lending?Real Estate Professionals Need CapitalThe Basics of Private LendingThe One Requirement for Private Lending for Real EstateThe Importance of the Down PaymentHow Do You Get Into Private Lending for Real Estate?Rule 1: Think Like a BankerRule 2: Have Your Own CriteriaRule 3: Leave the Paperwork to the ProfessionalsPrivate Lending and the Family EconomyLeveraging You Family’s Skills Connect with GaryAbout Gary BoomershineBook A Strategy Call
What is Private Lending?
[2:31] “If we look at...the biggest buildings on every street corner in the world, they’re not rehabbers or real estate companies. Okay, you’ve got a few of them. But you’re not going to see a flipper or a rehabber. The biggest buildings on every street corner, in every part of the world, are banks. Why? Because their business model works.”
Gary points out that many people see a bank, and only really view it as a natural part of their money cycle. They don’t fully understand the concept of banking, and how it is one of the most profitable business models. He points out that the population has been trained to be a cog in the banking system, without questioning it.
Yet, he also says this:
[3:25] “It’s really easy to vilify the banks. But...you know what? The business model works. How can we look at things and act like a banker?”
This is the foundation of private lending.
Real Estate Professionals Need Capital
No matter which way you slice it, capital is necessary for real estate investors. They can come up with the cash themselves, or they can leverage other people’s money to make the sale. Typically, this is when investors visit the banker for a loan.
[5:50] “Who writes the rules for finance? Is it the hard-working real estate investor? No, it’s always the lender.”
If the bank is the lender, they want to see your credit and tie up all your assets in collateral. They also likely want a down payment. Then, once the investor secures the property, who gets paid first? The bank. Banks almost view investors as employees—they’re doing all the heavy lifting and bringing business deals straight to the bank.
And there is tremendous opportunity in becoming like a bank and loaning your capital to other investors if you have the right vehicle to do so. In other words, you also want to leverage other people’s money, like that of a life insurance company.
The Basics of Private Lending
Gary’s first lesson of private lending is that he doesn’t go directly to borrowers. Instead, he goes to a hard money broker or private money broker. That way they can bring him the deal flows. The brokers talk to borrowers and handle the paperwork, as well as vetting properties. These are licensed brokers. Then, all Gary needs to do is wire the money and he gets a deed of trust (rather than a deed).
[8:25] “Private money lenders typically don’t use their own money. They’re using people like us. So if you have an infinite banking system, or if you have cash sitting in a bank account, [you] can go put that to work.”
In such deals, Gary prefers to be lending in the first position (as opposed to the second position), because there is less risk. This way, the loan is secured by a piece of real estate, and he gets a fixed interest rate.
[9:05] “I’m usually getting anywhere between eight and a half percent, and sometimes as high as ten percent. Some people can get higher than that.”
He also requests a 30% down payment, which mitigates much of the risk in the event that the housing mark...
Want maximum immediate liquidity with an IBC policy? Planning to fund a 10/90 infinite banking policy and then take max loans to fund real estate? Are these double-dipping returns too good to be true?
https://www.youtube.com/watch?v=YAwhBlF3XVs
STOP. Listen to this first.
The allure of making an IBC policy better than even the creator of the term IBC has many people shopping for “Skinny Base” whole life policies with maximum early cash value.
But there are problems on the horizon. And we’re scared of what 10/90 infinite banking policies mean for many who want guarantees.
Today, we’re talking with James Neathery, fellow IBC thought leader, Nelson Nash Institute certified IBC practitioner, and executive producer of the best-selling documentary on the Infinite Banking Concept, Banking with Life. In this rare panel discussion, we’re collaborating to give you the truth about policy design and what you need to understand that most financial advisors will never tell you.
So, if you want to make sure you build your IBC policy on solid rock and not shifting sand… tune in now!
Table of contentsIllustrations Aren't Always HelpfulThinking Big-PictureDon’t Steal the PeasGiving Up Guarantees with 10/90 Infinite Banking PoliciesAbout James NeatheryBook A Strategy Call
Illustrations Aren't Always Helpful
[5:45] “Specifically speaking about equipment financing in his first book, Becoming Your Own Banker... [Nelson Nash] said... if he were to rewrite the book, he would not put illustrations in the book. Because they serve, really, as a point of confusion. You know, you cannot look at a life insurance illustration—the tabular detail where all the numbers are—and make a coherent decision.”
We think this is a significant point because looking at the numbers seems like a logical step. Yet the illustration is a projection of what we expect to happen, not a guarantee of the policy. And looking at all of the numbers can be overwhelming and muddy the concept as a whole. Not to mention, if you're looking for early cash value and comparing illustrations, you may even overlook the big picture.
[8:15] “In the agent’s heart of hearts, they think that this is right, squeezing the base down...so you can have a high PUA or high cash value, or a high immediate loan value. But then they don’t realize what they’re sacrificing in the future on those policies. And there is absolutely a trade-off.”
Thinking Big-Picture
While the goal of infinite banking is to create a system of wealth for yourself that is liquid, reliable, and certain, it is often viewed as a magic pill. People want a quick solution, with quick cash value build-up. They want a magical pool of money to dip into. Unfortunately, this short-term thinking can prevent you from seeing and fully appreciating the long-term benefits of whole life insurance.
Early cash value build-up isn’t inherently good or bad—it depends on the purpose of your money. However, it isn’t magic. It still takes time and diligence to maintain a policy. Life insurance is meant to be a generational tool—well beyond even your own life.
[11:05] “You are afraid to capitalize, you are afraid to pay a premium if you have to have access to 100% of it.”
James Neathery isn’t disparaging access to capital, however, he is pointing out a system of flawed thinking here. While a 10/90 split may give you access to more of your premium immediately, it also tends to be a slippery slope. In James’ experience, he has seen people take out an early policy loan and feel overconfident in the early cash value, and repay the loan irresponsibly. This, and other factors, can actually limit the long-term benefits.
Don’t Steal the Peas
In Nelson Nash’s book, Becoming Your Own Banker, he equates owning a life insurance policy to being a grocery store owner. And as the owner, you’ve got canned goods like peas out on the shelf. As the store owner, you could argue that it’s cheaper for you to take ...
Shaahin Cheyene built a billion-dollar business by the time he was 18 by creating a thrill pill cult. He’s an award-winning business mogul, author, and filmmaker. He is also the inventor of Herbal Ecstacy, the nootropic that sparked the (100% legal) Smart Drug Movement.
https://www.youtube.com/watch?v=xYNnni4kKsw
He’s been called the “Willy Wonka of Generation X.” Now, he’s the world’s leading Amazon industry expert.
If you’re looking to accelerate your business, and learn from Shaahin Cheyene… tune in now!
Table of contentsGrit and ResilienceMaking Entrepreneurs Out of CriminalsGoing to Brick and Mortar ShopsThe Amazon EmergenceLinksAbout Shaahin CheyeneBook A Strategy Call
Grit and Resilience
[2:16] “Third world, Bruce. It brings grit and resilience. When you are not expectant of everything being handed to you, and in fact, you have to fight for everything you’ve got, it creates a certain kind of stick-to-itiveness. It creates a certain type of resilience in human nature.”
When Shaahin came to the United States from Iran, he didn’t speak English. His family was poor after their immigration, despite having been middle class in Iran. Shaahin learned from a young age that he had to be able to hold his own.
From his family’s perspective, his goal should have been to become a doctor. From Shaahin’s own perspective, his neighbor the doctor had mountains of student debt, kept crazy hours, and didn’t have the time to look after himself and his interests. So Shaahin knew there had to be a better way to “make it.”
Making Entrepreneurs Out of Criminals
Shaahin shares his own story about how he helped dozens of petty drug dealers become legitimate business owners through his product. While living in LA, he saw the power that drugs had over people and the incredible profit that could be made... if there was a way to create an entirely safe and legal alternative.
Without the money or means to have a full-scale operation, Shaahin leveraged the use of his girlfriend’s kitchen to experiment with herbal remedies. Eventually, he was able to develop something that worked—it gave people energy and made them happier, minus some of the negative side effects of drugs.
Then, he took that product to a well-known drug dealer. Out of desperation, the guy agreed to sell his product, and it slowly helped dozens of drug dealers legitimize their business and actually back out of the illegal drug trade.
Going to Brick and Mortar Shops
After helping these dealers, Shaahin took his business to brick and mortar shops and actually sold it across the world. Six months prior to this, he was sleeping in abandoned buildings. He built something from the ground up and was creating massive jobs. As he puts it, he hired “anyone who could fog a window.”
In that first year, he broke a billion dollars in revenue. Anyone who was anyone wanted him on their show.
After that, Shaahin has developed two new nootropics or brain-enhancing drugs.
The Amazon Emergence
Somewhere around 2008 or 2009, Shaahin reached out to Jeff Bezos, who had recently opened Amazon to third-party sellers. He listed some of his new products on Amazon and made thousands of sales overnight. So Shaahin knew that Amazon was going to be something huge.
[30:28] “I decided that I was going to master this platform. I put all my chips in on Amazon, and we learned.”
He had so many people coming to him for advice, at one point, that he decided to develop a course to help people become sellers on Amazon.
The course is on FBAsellercourse.com for $200, but if you mention The Money Advantage you can get it for free.
Links
Billion by Shaahin CheyeneAmazon Mastery Course (mention us to get the course free)Shaahin’s YouTube channelHack and Grow Rich PodcastEmail Shaahin: darkzess@gmail.com (Write: The Money Advantage, Send Me the Free Course
About Shaahin Cheyene
RANKED #1 Amazon Accelerator. I help you CRUSH IT on Amazon.
We’re so thankful for the opportunity to answer your money questions and clear up your confusion. If you’re stuck, we want to help you make sense of the situation so you can move forward.
https://www.youtube.com/watch?v=zeWqkGwSBq4
Today, we’re continuing the conversation to answer questions from you—our audience. We want to help you on your quest to control your financial future.
There are some great ones here that might be on your mind too. So maybe you’ll get the answer you’ve been needing, and get one step closer to your goals… OR maybe it will prompt you to ask a question of your own… tune in now!
Table of contentsWhy is Whole Life Insurance “Better” Than Indexed Universal Life Insurance?Can You Explain “Other People’s Money”?Can You Explain the Difference Between Dividends and Interest?Is it Wise to Run Expenses Through an Infinite Banking Policy?Book A Strategy Call
Why is Whole Life Insurance “Better” Than Indexed Universal Life Insurance?
The answer boils down to the contractual guarantees of whole life insurance versus IULs.
An IUL contract is roughly twice the size of a whole life insurance contract. The reason it is so lengthy is that the insurance company has to include explanations of all the risks involved. An IUL carries much more risk because of its correlation to the stock market. And because it’s risky, taking policy loans from an IUL shifts even more risk off of the company's plate and onto yours.
Agents often sell IULs as the best of the stock market’s upside, and you can’t lose money. However, that isn’t actually true. To begin with, you don’t get the best of the market, because IULs often have a maximum rate, or a participation rate, or some other provision that limits how well you can do. And while you cannot lose money from a downturn in the stock market, your policy cash value can decrease. Unfortunately, people don’t understand that if the policy doesn’t perform as well as the “hypothetical examples” given by the insurance company, the companies can increase the cost of insurance, which reduces your account balance.
Whole life insurance guarantees that the money credited to your cash value will not decrease. So although dividends are not guaranteed in whole life insurance, they have a great track record. That, and the only way your policy will decrease is through withdrawals. In fact, your whole life contract guarantees that your cash values floor will increase every year.
The bottom line is that we do not endorse using an IUL as an infinite banking policy. You can learn more about this in Privatized Banking: What Kind of Policy Do You Use?
Can You Explain “Other People’s Money”?
One viewer asked:
Can you explain OPM further? In real estate, when you use OPM as a loan, your cash in the bank is readily accessible. For example, let's say I have $100k in the bank & I borrow $100k to buy a property instead of paying cash. I've borrowed $100k and still have access to $100k to buy another identical property for cash (access to $200k total). But with a policy loan, if my cash value is $100k, let's say the insurance company collateralizes my $100k cash value and they lend me $100k, I can not go back to my policy and cash out my $100k cash value since it's collateralized. This means I only have access to $100k, not $200k, like in the first scenario. Am I mistaken?
We love that this question is so thoughtful and detailed. To answer the first part of your question, we agree! If you have $100k in the bank as cash, and you get an unsecured loan of $100k, you are leveraging OPM (other people’s money) to have greater access to capital. If you’re using infinite banking, and you have $100k of cash value and you collateralize it, you are tying it up so that you can no longer use it. However, you’re getting access to $100k of the insurance company’s money and leaving your cash value to sit and continue accumulation. Essentially, you’re trading your access,
Are you repeating the same day over and over again, or building momentum and springing forward by leaps and bounds? Are there opportunities buried in your own business? Today, we’re talking with Adam Hommey, author of Groundhog Day Is an Event, Not a Business Strategy.
https://www.youtube.com/watch?v=Ubie5ZpV45o
If you want to find out how to connect your brilliance and your passion to WIN in business and marketing… tune in now!
Table of contentsAdam Hommey’s BeginningsGroundhog DayHave You Instituted “Permanent Reactions”?What Could You Have Someone Else Do?What is the SPRING Formula?Transaction Partners vs. CustomersMinimalism vs. Essentialism in BusinessShould You Nix the Business Phone?Availability vs. AccessibilityConnect with Adam HommeyAbout Adam HommeyBook A Strategy Call
Adam Hommey’s Beginnings
Entrepreneur and author Adam Hommey began his entrepreneurial journey in 2003. Yet almost a decade later Adam found himself wondering where he wanted to go next. He didn’t have a vision. For a few years, all he used to get leads and share his ideas was podcasting.
At this time, he was also posting frequently to his social media. When a friend remarked that he enjoyed seeing the “daily Adam,” he had an idea. Thus began a blog called the “Morning Adam.” For 90 days he cross-posted his social media posts onto this blog without specific marketing goals.
This helped Adam to release what was blocking him and just create.
[5:30] “I notice entrepreneurs find themselves on these plateaus, no matter what happens... when the dust settles, they find themselves at the exact same level of profitability or lack thereof—sometimes even the same dollar amounts—and they’re having the same conversations they’ve been having for five years.”
Groundhog Day
This revelation led to his book, which talks about the cycles entrepreneurs get stuck in. And when the actual holiday rolled around, Adam wasn’t fully ready to publish this book. However, he didn’t want to wait another full year to take advantage of the holiday. So he made time to launch it, anyway.
[7:48] “The ‘how you’re supposed to do it’ is, in more cases than not, a permanent overreaction to a temporary blip on the radar. You can break those rules like I broke those rules getting the book done.”
[8:10] “You are allowed to be unconventional. I created an entire marketing program that had no avatar, and no target market, and no product behind it--and that created my core following that is still the basis of my fan base for the Business Creator’s Radio Show to this day.”
Have You Instituted “Permanent Reactions”?
Adam shares with us a brief parable of a woman who cuts off the ends of her roasts before she cooks them. When her husband asks her why she does this, she answers that it makes the roast cook better. This is what she’s been told her whole life. In reality, what she didn’t know is that three generations back, during the Great Depression, her family began doing this because they couldn’t afford a bigger pot. It became a habit, or a “permanent reaction,” due to a temporary situation.
[11:35] “That is what I think constrains us in many cases. I urge business creators, entrepreneurs, whoever you are, to look at the things you’re doing on a daily basis, and ask yourself continuously, ‘What would happen if we didn’t do this at all?’ And that creates a challenge. It helps to surface those things that may be permanent overreactions to temporary blips on the radar.”
Adam continues that not only does this give you an opportunity to see new, potentially more efficient, ways of doing things. It can also help you identify your real, high-value actions, so that you can do more of those.
What Could You Have Someone Else Do?
When you take time to answer Adam’s question, you may start to realize that there are things you can move off of your plate. There’s no reason someone else can’t do the things that you don’t want to do,
Are you considering whole life insurance, but want to know more about the new products the life insurance companies have released in response to the 7702 changes in 2021? How a whole life dividend rate is computed? Is cash value life insurance improving? Well, the new products are finally here! Let's dive into the 7702 whole life insurance dividends update discussion.
https://www.youtube.com/watch?v=ZvRI9r7cEqk
What does the 7702 tax code mean for whole life insurance dividends? Tune in now to get the need-to-know information so you can see what to expect for new Infinite Banking policies.
Table of contentsRecapping the 7702 Whole Life Insurance Dividends UpdateGuarantees Have Gone Down... What Does This Mean?Gross vs. Net How Interest Rates Really Work7702 Whole Life Insurance Dividend UpdatesIllustrations are Not ContractsIs Death Benefit More Expensive Now? Is it Too Late to Have a Policy Without The Changes?How Does Convertible Term Work with the New Changes?Book A Strategy Call
Recapping the 7702 Whole Life Insurance Dividends Update
In our previous blog post(7702 Whole Life Insurance Updates), we discussed some of the changes to life insurance products because of the updated 7702 tax code. Naturally, this raised some questions that we want to personally address. This is a new thing for us all, and it’s important to have a good understanding of it going forward.
These new products are great for the death benefit, which is really the insurance portion of your insurance. The death benefit is what protects your future income, and can help your family members in the event of a loss. Yet, we’re rightfully getting a lot of questions about what this means for cash value.
Guarantees Have Gone Down... What Does This Mean?
Most of the new life insurance products have lowered their guaranteed cash value increase, yet what does this really mean? Is this a good thing, or a bad thing? We think it all depends on your point of view.
The obvious concern is that if the guaranteed interest rate is lower, that means that cash value build-up is going to be much slower, right? Fortunately, this isn’t quite true. A life insurance company’s first responsibility is to meet contractual obligations. This means delivering all death benefits, paying out profits, etc.
In a low interest rate environment, especially during a long-term one, this can be detrimental. By lowering the guarantee, insurance companies can continue to fulfill their role with confidence, and without needing to take more drastic measures, like demutualizing.
Gross vs. Net
It’s also important to know that guarantees are Gross—this means that they are projected before fees and other costs of the policies. So a guaranteed rate, no matter what the number is, is likely to be lower than you think it is. Does this make it bad? No, this makes it realistic.
Fortunately, there are a number of other ways your policy can grow, including the profits the company makes, in the form of a dividend. If you didn’t know, the guaranteed interest rate is actually a portion of the total declared dividend. So what the companies are doing is actually changing the structure of the declared dividend, and making a lower portion of the full declaration guaranteed.
In other words, if they’re making a reduction in the guaranteed interest rate growth of your policy, that does not necessarily mean that they’re reducing the declared dividend rate. What the insurance company is doing is reducing the guaranteed portion of the total declared dividend. This may have very little impact on what you actually make in growth each year.
How Interest Rates Really Work
If you’re thinking that a 1% increase or decrease doesn’t matter all that much, here’s some food for thought. When interest rates go down, bond values tend to go up. This happened in the 80s and 90s, and we’re likely to see it again.
And even a 1% increase can make a large impact on bond rates...
Are you considering whole life insurance, but want to know more about the new products the life insurance companies have released in response to the 7702 Whole Life Insurance updates in 2021?
https://www.youtube.com/watch?v=WCMQruG3bVQ
The new products are here. What does the 7702 tax code mean for whole life insurance?
Tune in now to get the need-to-know information so you can see what to expect for new Infinite Banking policies.
Table of contentsWhat are the 7702 Whole Life Insurance Updates?What Happens to the Infinite Banking Strategy?Are Lower Guarantees a Bad Thing?Is Less Death Benefit Bad?Is There a Big Difference Before and After?Book A Strategy Call
What are the 7702 Whole Life Insurance Updates?
If you’re scratching your head when you hear 7702, don’t worry. This simply refers to a section in the IRS tax law that dictates the tax treatment of whole life insurance. At the end of 2020, this tax law was updated.
While some have voiced concerns over how this will affect future life insurance policies, we’re more optimistic. You can read our initial analysis of the 7702 whole life insurance updates in our post, Is Infinite Banking Dead?
Fortunately, we’re now seeing actual life insurance illustrations that reflect these changes. That means we can dive deeper into the discussion with real numbers so that you can make the most informed decisions possible about your insurance.
What Happens to the Infinite Banking Strategy?
While there’s still a lot of unknowns, we’re starting to see new developments in the 7702 change. These updated products and policies will take full effect by January 1, 2022. Not all major life insurance companies have begun to sell these new policies.
From our preliminary analysis of what’s available right now, here’s what we know:
Guarantees have gone from 4% to somewhere in the 2-3% range on most productsYou’ll see less total death benefit compared to older policies of the same premiumTotal dividends, which include guaranteed and non-guaranteed, should not be impacted much
Are Lower Guarantees a Bad Thing?
Not necessarily. In fact, as we mentioned in our first 7702 whole life insurance updates article, lowering the guarantees can actually strengthen your company’s longevity. Remember that minimum guarantees are just that: minimums. As a policy owner, you get to partake in the company’s profits. This means that if and when interest rates bounce back, we would expect to start seeing higher returns on the non-guaranteed side.
We should also note that the guaranteed portion of your policy is a part of the declared dividend. For example, if the guaranteed side is 4%, and the declared dividend rate is 5%, you’re (roughly) getting an additional 1% in growth. However, there are certain factors that change exactly how this calculation works.
Ultimately, remember that an illustration of a policy is simply a snapshot in time. As soon as companies pay dividends, that illustration is inaccurate. So a policy illustrated in a low-dividend year won’t reflect the real trajectory of your policy. It’s simply a guideline.
We discuss this further in 7702 Whole Life Insurance Dividends Update (2021) Part 2.
Is Less Death Benefit Bad?
While total death benefit is going to be lower overall, this actually pushes the cash value up. This happens because your cash value is the portion of the death benefit that’s accessible to you. And by the endowment age, your full death benefit is accessible to you. As your policy matures, the death benefit increases, and your accessible cash value increases.
With a lower death benefit, this means that your cash value is proportionately higher than a similar policy.
While you may be losing some death benefit, what you’re not losing is cash value and the ability to access that cash in a tax-advantaged way. To solve for the death benefit, you can consider a convertible term insurance policy or put more premium into y...
What are the top 1% of high-performers, producers, and achievers doing differently? How is it possible to get more done, scale your business, and have MORE time for what matters, not LESS? Discipline. It’s what you need, but it’s not what you think. You can’t hustle and grind into your ideal life. Our guest, Craig Ballantyne shares with us an alternative definition of discipline...and how working less may actually get you where you want to go.
https://www.youtube.com/watch?v=4AoOx5OIRhc
Intrigued? Join us for a conversation with “The World’s Most Disciplined Man,” author of The Perfect Week Formula, The Perfect Day Formula, and Unstoppable, coach, builder of multiple 7-figure businesses.
If you want to achieve more than you thought possible, while working less… tune in now!
Table of contentsWhy is Craig Ballantyne the “World’s Most Disciplined Man”?Becoming More Productive Creating Systems in Your DayWhy Value-Alignment MattersAbout Craig BallantyneGet Free Copies of Craig Ballantyne’s BooksBook A Strategy Call
Why is Craig Ballantyne the “World’s Most Disciplined Man”?
[2:30] “It came about...because about 10 years ago I was finishing up my career in the fitness industry, and I was starting another business, helping entrepreneurs be more productive. And some of my friends would be like, ‘Man, how do you get so much done?’... And they first started calling me the most productive person. Then that just kind of morphed into the most disciplined, because in order to be productive, you really have to have discipline.”
However, the way Craig Ballantyne identifies discipline may not be what you’d expect. Craig shares that most people define discipline as additional tasks to do.
[3:20] “I actually take the opposite approach, and I call it effortless discipline. And what this is, is it’s really not using willpower, it’s not making your life harder. It is simply building systems into which success becomes automatic.”
Becoming More Productive
[5:40] “...I joked that I was lazy and undisciplined because I didn’t have the systems and stuff at home in order to be effective and disciplined and productive. But anybody can build the systems around themselves to be successful.”
The trick, Craig asserts, is not adjusting your life to fit his productivity principles and systems. Instead, you adjust the systems to fit your life. For example, he frequently shares the idea of “attacking your morning” with his audience. Some may interpret this as a call to wake up earlier, however, Craig recognizes that many people are night owls. So it’s less important when people wake up, and more important that whatever time they wake up, they make use of that time.
Creating Systems in Your Day
[12:30] “We can control our morning: we can control what time we get up, we can control what we have for breakfast more than most other meals. We can control what time we get started on our work—that sort of stuff. And we control what we let into our heads—whether we go to YouTube immediately, or Twitter immediately, or we actually sit down with a book. Or we sit down and work on our number one priorities. We have a lot of control in the morning. And the more control we put over the morning, the better we’re going to be able to deal with the chaos that comes in the afternoon.”
[15:30] “Everybody listening to this is probably familiar with Dilbert, you know, the cartoon. And Scott Adams, who writes Dilbert, has actually written some really great books on being successful in life… The title of his book is ‘How to Fail at Everything and Still Succeed in Life,’ I think. And he just talks about how everything is not about goal-setting, it’s about system building.”
Craig Ballantyne continues to say that goal-setting is really like wishful thinking. Creating a system, on the other hand, helps you make strides toward your goals. Goals don’t necessarily have systems in place though.
How are whole life insurance dividends and interest rates faring in this low interest rate environment? Is today's long stretch of low interest rates a bad sign for whole life insurance in the future?
https://www.youtube.com/watch?v=FYMHKtVtVKI
Today, we're having a candid conversation about today's interest rate environment, the impact on bond rates and prices, and how that impacts whole life insurance dividends.
If you want to know how your whole life insurance will weather any environment… tune in now!
Table of contentsThe Role of Bonds on InsuranceHow Do Insurance Companies Invest?What About Policy Loans?Life Insurance Companies Invest ConservativelyHow Do Bonds Work?What a Portfolio of Bonds Means for Insurance CompaniesWhy You Shouldn’t Worry About Low Dividend RatesAdditional ArticlesBook A Strategy Call
The Role of Bonds on Insurance
Bonds play a significant role in the dividends you receive as a policyholder. This happens because life insurance companies invest heavily in conservative bonds. So rising interest rates should lead to higher declared dividend rates. Similarly, a falling Federal interest rate will likely result in a decreased dividend rate.
Are there long-term effects of a low interest rate environment? Well, not to spoil things completely, but life insurance has been around for a long time. It has survived many low-interest rate environments, paying dividends through wars, depressions, recessions, and much more.
We’re going to dive deeper into why this is, and how life insurance is still one of the safest choices for your money.
How Do Insurance Companies Invest?
When you pay premiums, the insurance company doesn’t just throw that money into a savings account and wait. They actually put the money to work. Some of this money goes into securities, however, it’s a minuscule amount. Many companies have anywhere from 0.58% to 2.49% of their portfolio in common stock.
The much more significant portion of life insurance company’s investments is in bonds—either corporate bonds or treasury bonds. Bond investments often range from 60.2% to 75.5%.
Then, there are preferred stocks, which work similarly to bonds because it produces interest. Additionally, preferred stock means that stockholders get paid before anyone in the common stock gets paid. This means preferred stockholders have low liability. The range for preferred stocks is about 0.25% to 1% of the company’s portfolio.
The next biggest investment in an insurance company’s portfolio is going to be mortgage-type investments. Companies allocate anything from 0% to 16.3% of their portfolio to mortgages. To reduce risk, they invest in high equity mortgages. Real estate investments, separate from mortgages, range from 0.33% to 1% of the investment portfolio.
What About Policy Loans?
The last kind of “investment” life insurance companies make is contract loans. And these are the loans that insurance companies offer to policyholders. Contrary to popular belief, when you take a loan, you’re not taking a loan from yourself. The life insurance company is giving you the money because your cash value is backing the loan. This also means that when you pay interest, you’re paying interest to the life insurance company, not yourself.
Life insurance loans make up anywhere from 2% to 7.24% of an insurance company’s portfolio.
Policy loans, even in a low-interest rate environment, are great for insurance companies, and by extension you, as the policy owner. It all comes down to the way mutual companies are structured and the dividends they pay. In a low interest rate environment, with many loans fixed at about 5%, this is actually some of the greatest returns companies get during such times. Plus, they can take comfort knowing all loans are backed by cash value.
This is beneficial to you, the policy owner because you want your insurance company to do well. You partake in the profits of the company,
Want your charitable giving to make the greatest difference in the world? Today, we’re talking with Kris Putnam-Walkerly, author of Delusional Altruism, who advises philanthropists who want to achieve greater clarity, impact, and joy with their giving.
https://www.youtube.com/watch?v=cWVQF5___XQ&t=11s
We’ll discuss why how you give matters, the 7 delusions of altruism, and how to create lasting change.
If you’re a philanthropist, donor, or an everyday person who donates time, money, and experience to help create a better world… tune in now!
Table of contentsDelusional Altruism: What Makes Philanthropy Effective or Not?Invest Like It’s Your BusinessHow Do Philanthropists Get in Their Own Way?How to Ask the Right QuestionsHow Can You Be Transformational in Your Giving?Links Mentioned: About Kris Putnam-WalkerlyBook A Strategy Call
Philanthropy Coaching
[7:08] “I also provide a lot of coaching and advising. So most of my clients now retain me as a private coach to help them navigate their philanthropic journey and help them get clarity on what they’re trying to accomplish. And help hold them accountable to accomplishing it. And really being a sounding board to them, because it can be a very lonely place to be. Either you’re the executive director, perhaps, of a foundation...but also for, perhaps, an ultra-high-net-worth donor...it can feel lonely because you can feel a lot of guilt with having all that wealth.”
The reason it’s lonely, as Kris mentions, is that there aren’t many people you can have a conversation with about your finances. Either people are asking for that money, or they don’t validate your struggles because you have money.
Delusional Altruism: What Makes Philanthropy Effective or Not?
[9:35] “Delusional Altruism is really about how donors of all sizes and types are generally genuine in their altruism. They really want to make a difference, change the world, want to help others; but are getting in their own way and are preventing themselves from having the impact that they seek….So part of the challenge with effectiveness is, it’s hard to be effective when you’re getting in your own way.”
[10:05] “One of the challenges is a scarcity mindset, and this is when donors believe that maintaining a spartan operation for themselves or their grantees...somehow equates to delivering greater value in the community.”
[11:00] “If you want a non-profit to be successful, just like a business, it requires investment in your growth and in your success.”
[11:55] “I think a lot of people of wealth feel guilty. They feel guilty because maybe they inherited the wealth and didn’t earn it, and therefore don’t deserve it. Or maybe they made more money than they ever thought they’d make in their lifetime, sold a business, and suddenly have wealth... But the problem with that is it really holds funders back, from a mindset perspective. It often causes people to shrink, to kind of mask their talent and mask their ability to make a difference in the lives of others.”
[13:04] Rachel: “The business in the first place is service to mankind and to the world. And you are not taking money from society; you are giving something that’s more valuable, and the exchange of that is that you are profitable.”
Invest Like It’s Your Business
[18:50] Kris: “Is that how you invest in your business? Do you only allow one cent of every dollar to go to pay your staff salaries? [Or] to go to pay for your own business development? So why are we asking a non-profit, who’s trying to save people’s lives, why are you asking them to do [that]?”
How Do Philanthropists Get in Their Own Way?
[20:20] “I think fear really is the primary cause of the scarcity mindset. And there are lots of different ways funders feel fearful; which might surprise you because you assume that the donor is wealthy, and with wealth should come confidence.”
[25:30] “Sometimes we...sort of stumble through our giving based on what...
If you're shaking your head at the state of the world right now, you're not alone. There are food shortages, supply chain disruption, medical mandates, unemployment, price inflation, and more of our freedoms at stake.
https://www.youtube.com/watch?v=Zaew0MenJhU
Yet, people are thriving, there's more opportunity than ever, and you will succeed if you live by this one truth. To join the conversation… tune in now!
Table of contentsThe Domino Effect of Supply ChainsIt’s Easy to Be Discouraged…Walking in AbundanceAn Abundance Mindset Causes SuccessEntrepreneurs Are the Real Movers and ShakersBook A Strategy Call
The Domino Effect of Supply Chains
Are the shelves at your local stores looking a bit empty? If so, you’re not alone. And while there may technically be food “shortages,” we’re not lacking food. What we’re actually experiencing is shortages along the supply chain. Lack of workers, for example, means that there are gaps in how food and other goods get distributed to stores. This is the same reason it’s taking longer to receive packages.
There’s no huge headlining problem, rather there are small structural pieces missing that are affecting the economy on a global scale. And these small pieces can have a massive domino effect. Because if a single piece of this supply chain is broken, everything that comes after that “break” is delayed or impacted.
If you’re looking for a great read for all ages—The Miraculous Pencil, a children’s book by Connor Boyack about free markets, really breaks down the global economic infrastructure.
It’s Easy to Be Discouraged…
When you look at the state of the world and know that our freedoms hang in the balance, it can be devastating. It’s easy to feel discouraged by the news and media. However, it’s important not to let this mindset make you feel hopeless, or like you no longer have control.
I think we can walk in a state of abundance because here’s what I know: people are still finding tremendous opportunity in the midst of the state of the world.
Walking in Abundance
The big question is, are we going to walk in scarcity, or are we going to walk in abundance? And the choice may seem obvious, but it’s important to actively choose abundance. You have to live abundance to walk in abundance.
In a world like what we’re experiencing now, that means not walking in fear. It can also look like not hoarding supplies and food, and being confident that you will be provided for, as well as your fellow man.
Walking in abundance may also mean looking at your income, and determining how to maximize your income and your cash flow. How can you manage your resources so that you have increased access to and control of those resources?
An Abundance Mindset Causes Success
Actively cultivating an abundant mindset doesn’t just increase your odds of success. This mindset actively causes success. When you think abundantly—free of fear, free of limitation—you can see and seize opportunities that someone living in scarcity mode is simply unequipped to do.
If thinking this way doesn’t come naturally to you, don’t worry just yet. Fortunately, you can train yourself to think this way. It takes work, consistency, and time—but it is possible.
The whole spectrum of scarcity to abundance can all be boiled down to this idea of being in fear or being in faith. If you are in fear, it’s very easy to be controlled by other things, and not be in control. And scarcity always causes you to give up control.
In today’s world, there are a lot of fears: fear of the virus, fear of the vaccine, fear of shortages, and job loss and mandates. We could continue the list for quite some time. The point is, when you act solely upon these fears, you allow the fear to control you. Choosing abundance means asking how you can act in faith, even when the world around you feels uncontrollable.
Entrepreneurs Are the Real Movers and Shakers
Entrepreneurs,
How does the quality of your life relate to the health of your business? How do you free yourself from the constant demands of your business? If you have a cash-sucking business, there’s hope. It doesn’t have to be this hard. Joining us today for this conversation is Dr. Sabrina Starling, the Business Psychologist. with Tap the Potential. She’s an author, speaker, and coach who believes that work should support your life, not the other way around. And she's introducing her new book, The 4 Week Vacation.
https://www.youtube.com/watch?v=e84ovViK6yo
If you’re not taking time off, on the edge of burnout, exhausted, struggling with team performance, stressed or cash-strapped… tune in now, and find out how making a 4-week vacation pledge might be your answer!
Table of contentsFinding A-Players for Your BusinessBurnout, and the Need for The 4 Week VacationThe 4 Week VacationWhat’s in The 4 Week VacationContact Dr. Sabrina StarlingAbout Dr. Sabrina StarlingBook A Strategy Call
Creating Freedom in Your Business
[4:00] “When we have success, we struggle. When our businesses grow and they take off, they demand more and more of us. Being an entrepreneur is our greatest opportunity for personal development. Because we have to grow ahead of that business in order for that business to be where we need it to go. So what I take from that experience is that hiring and being in business has always been challenging. This is nothing new.”
[7:50] “The book that I always wanted to write is The Four Week Vacation…. But before I could write this book, I realized I had to help them [entrepreneurs] with their hiring challenges. So I dug in and wrote How to Hire the Best, and I developed the How to Hire the Best system so that business owners could take their lives back….And that’s really what it takes to have a thriving business, and a business that’s going to continue to grow, that’s going to not rely on you, the owner, for the day-to-day operations of the business.”
[9:00] “When we design our businesses to give us freedom and generate profit and ongoing owner’s pay, then we have that opportunity to make strategic decisions with the wealth that’s being created; not just for ourselves, but for team members, and impacting the communities that our businesses are located in. So it’s really much bigger than just creating a business that gives you freedom. It’s really about creating a business that’s going to have an impact for all involved—and what I like to call life-giving businesses.”
Hiring Top Talent
[12:30] “I really think it is getting clear on the ‘why’ that we are in business. If we are in business to be perfectionists, then we can work 70 plus hours a week and we can be great perfectionists and really be good at it. If we are in the business to create freedom and opportunity for others, then we need to align our choices and actions with that.”
[13:13] “When we’re in survival mode, psychologically, it’s very hard to access that creative part of our brain; it’s just not there. So creating a vision and a compelling why is really the most important thing. And the irony is that we tell ourselves we don’t have time to step back and get into that creative zone... Well, all the research shows that the less we work, the more effective we become.”
Dr. Starling shares a few things you can do to step back and rest: take a lunch break, stop working at 5 PM, and don’t check emails and texts until the next day. Otherwise, you get burnout and overwhelm, and somewhere along the line your life stops being the one you’re trying to create.
Thoughts on Retirement
[18:10] “When I titled my book The Four Week Vacation, I almost changed the title. Because as I’ve been talking about this book for years with people and entrepreneurs, I get pushback. Because I hear, ‘I don’t know what to do with myself if I take four weeks off.’ What is that about? And I think so much of it is that we’re so used to working hard that we’ve...
We all have money questions. If you don’t, you just haven’t asked them yet.
https://www.youtube.com/watch?v=jrsQ4Tzo7ao
Today, we continue to answer questions from you—our audience, tribe, fans, those in a quest to control their money and financial future! You can view part one of this conversation here.
There are some great ones here that might be on your mind too. So maybe you’ll get the answer you’ve been needing, so you can clear the hurdle and get one step closer to your goals… OR maybe it will prompt you to ask a question of your own… tune in now!
Table of contentsWhat Should You Do With Extra Cash?How Can Debt Be Advantageous?Compounding InterestIBC Isn’t About Paying Off DebtCan You Withdraw Your Cash Value?Available Cash ValueLow Cash ValueWhat Happens if You Withdraw All Your Cash Value?What Happens if You Collateralize All Your Cash Value?Policy CollapseIs There a Difference in Dividends on Base Premium vs. PUA?Do You Get Your Cash Value When You Die?What Endowment MeansCan You Pay Premiums on a Monthly Basis?Book A Strategy Call
What Should You Do With Extra Cash?
In this instance, a listener named Matthew says he recently did a cash-out refinance. Now, he’s wondering what to do with the cash he has leftover.
Really, the answer depends: there’s no one-size-fits-all answer to this question (or in fact, many questions). The follow-up question that we would like to pose in return, is what is the purpose of your money? What do you want to accomplish with your money? You can approach this from the big picture as well as on a smaller scale, like what you want your money to do at this stage of your life.
If you’re unsure of what to do with extra cash and want to hone in on your money’s purpose, here are some clarifying questions:
Does your money need to be accessible to you? Or is this money you are comfortable locking into an investment or other illiquid arrangement?Are you looking to create a cash-flowing asset that will create passive income?Do you wish to use this money for long-term growth? Or do you have a short-term opportunity?Is your emergency fund sufficient? Are you looking to take on some risk, or protect what you have?
It’s also okay to wait and be patient until you know what you want to do—or an opportunity presents itself. A privatized banking system may be a good way to store cash long term while you wait. Or you may want to park your cash short-term. You may want to do a combination of many things.
How Can Debt Be Advantageous?
Another listener mentions their interest in IBC, yet is unsure what the advantage is of funding a whole life insurance policy just to take a policy loan? They offer an example of funding a policy with $40,000 of cash value and accessing $36,000 to make a purchase, such as a car. By their calculation, they’ve funneled $76,000 into a $36,000 car.
This is an extremely important question and one that “makes or breaks” people’s understanding of IBC. Because this can be hard to wrap your head around, and it may take some “unlearning” of what you’ve been told about life insurance.
First and foremost, you can’t think of your life insurance premium as a “cost” to you. Instead, consider it savings that you can automate. Because the premium payments you make directly fund your cash value, which grows over time. It’s no different from paying money to the bank; or more directly, paying into your home and taking a home equity line of credit.
If you contribute $40,000 to your savings account, and then spend the savings, you’re not paying twice. You’re storing your money and then using it. A life insurance policy is another means of storing money, and a policy loan is another means of using that money.
The advantage of taking a policy loan, rather than a withdrawal from a savings account, is twofold. First, you have control. You can determine how fast, or slow, you pay the loan back. If you run into a lean year,
What if your thoughts about the Bible and what it has to say about money were crippling you instead of helping you to flourish the way you’re meant to? Today’s guest is Rabbi Daniel Lapin, returning for another deep and powerful conversation about business, money, and the Bible.
https://www.youtube.com/watch?v=ytZD5GkFlp4
He’s a rabbi, speaker, TV host, and author of seven books, including America’s Real War, Business Secrets from the Bible, and Thou Shall Prosper-The Ten Commandments for Making Money.
Instead of avoiding the seeming conflict in our culture between God and money, Rabbi Lapin is known for uncovering and unpacking Biblical wisdom to guide today’s business leaders.
Prepare to be challenged, changed, and grow… tune in now!
Table of contentsWelcoming Back Rabbi LapinWhy Business MattersInvesting vs. Making Money in the First PlaceFaith and FinancesA Godly EconomyDoes God Want You to be Wealthy?About Rabbi Daniel LapinBook A Strategy Call
Welcoming Back Rabbi Lapin
[2:23] Rachel: “We believe alike when it comes to money. And it’s amazing to me, to be able to understand the roots of what everything means, financially, and how that connects to our Christian faith, how it connects to biblical principles.”
And a common journey is reconciling faith with finances—how can you be a good Christian and a good entrepreneur without those things being in conflict? Fortunately, as Rabbi Lapin shows us, there’s more overlap than you think. We’ve enjoyed having him as a guest several times before because he has a deep understanding of the bible and the financial wisdom within its pages.
[4:54] Rabbi Daniel Lapin: “We are not using our time today to try and surreptitiously convert people to faith. What we are trying to do, very forthrightly, is impact their bank accounts.”
Why Business Matters
We’ve talked about many of the Rabbi’s books on The Money Advantage, and today is about one of his older books, Business Secrets from the Bible. What’s great about this book is that it provides a strategic, spiritual approach to business. And the foundation of this approach is within the pages of the Bible.
The conversation begins with a few thought experiments, such as the one below:
[13:15] “If retirement is such a good thing, what would happen if everybody in your world retired? According to the way many people think, people should say, ‘Well...God bless them, good for them. They’ve made enough money, they don’t need to work anymore. It’s great!’ And that would be great until you decide you want to go to a restaurant for dinner. And then you discover that nobody’s there because they’ve all got enough money, they don’t need your money.”
[14:18] “Without other people, you have nothing.”
The Impact of Inflation
Rabbi Lapin brings another thought experiment into the conversation. He asks you to imagine you found a duffel bag filled with a million dollars. And to your surprise, it’s addressed to you, as a gift from the white house. Your mind begins to fill with the possibilities of that money, and you call your friend to tell them. But before you can say anything, they tell you that they also received a million dollars from the white house. And you quickly come to learn that every single person got the same gift.
[17:40] “This is the mystique of money: if everybody got a million dollars, it is exactly the same as if no one got a million dollars. Really, nothing has changed.”
Lapin takes it further and says if you don’t understand, think about what you would do with the money. Say you want a specific BMW, so you go to the dealership to purchase it, because you can still use the money, right? But before you can find a salesman, you’re in a line of 40 people, with only 6 or 7 of that particular BMW available. And the price of the BMW has also shifted to reflect this sudden infusion of cash in the economy.
These thought experiments serve to help people think differently about mo...
We all have money questions. If you don’t, you just haven’t asked them yet.
Today, we’re answering questions from you—our audience, tribe, fans, those in a quest to control their money and financial future!
https://www.youtube.com/watch?v=ZiW3MeJiL7c
There are some great ones here that might be on your mind too. So maybe you’ll get the answer you’ve been needing. Then you can clear that hurdle and get one step closer to your goals. OR maybe it will prompt you to ask a question of your own. Find out and tune in now!
Table of contentsDoes it Make Sense to Fund a Policy with a Loan?Should You Pay Off Your Mortgage ASAP?Can You Borrow Against Your Death Benefit?Why Can’t You Simply Increase the Face Value of an Existing Policy?Is it Complicated to Prove Disability?What Insurance Companies Do You Suggest?What are the Interest Rates on a Policy Loan?Can I Do a 1035 Exchange Between Companies?What Are the Best Companies to Work with for Policy Loans?How Do Premiums Contribute to Cash Value?Isn’t a Dividend Just a Refund of Premium? Book A Strategy Call
Does it Make Sense to Fund a Policy with a Loan?
A YouTube viewer of our show asked us the question, “Does it make sense to take out equity from an investment rental to start a policy and then borrow from that policy to reinvest in other investments?”
We believe that it makes sense to have a life insurance policy as a foundation for your finances. This is because it protects your income, provides liquidity, and shields your money from creditors. On the other hand, properly funding a whole life insurance policy requires consistent payments. Depending on your funding source, it may not be wise to fund a policy with a loan if you don’t have a strategy for paying premiums after that. This depends on your personal economy and your investing goals.
The other reason for caution is that it can take a few years for your cash value to “break even.” While you are able to take a life insurance loan right away, your cash value will not immediately equal your premiums paid. It will take time to build your policy to a point where you can make larger investments. However, when you do reach that point, it’s an excellent strategy to leverage policy loans for cash-flowing investments.
Should You Pay Off Your Mortgage ASAP?
This question comes from Lon, another viewer on YouTube. He shared with us a HELOC strategy, and ended with this hypothetical: “The other question that you really need to ask is: Is it really better to pay off my mortgage ASAP vs. using my available income for investing?”
We agree that this is a great question to ask. The answer, again, is not black and white. There are two answers to this question: a mathematical answer, and an emotional one. Mathematically, it often doesn’t make sense to accelerate payments because you lose control. Contrary to popular belief, the less you owe on your home, the more control the banks have. This is true because, in the event that you cannot pay your mortgage, the bank is less likely to foreclose when you have a large loan balance. This is because there’s a chance the banks will be unable to make up the difference.
On the other hand, if you’re only a few years away from owning your house, it’s easier for banks to foreclose. They can sell your property and have a much greater chance of making up the difference on the house.
This doesn’t necessarily mean you shouldn’t pay down your mortgage. However, it does illustrate the benefits of saving or investing your additional income, rather than putting it into the house. You can build equity in a life insurance policy, then use that to pay down your home. This is one way to maintain control of your home and your money.
Then, there’s the emotional component. Sometimes, you just sleep better at night knowing that you're reducing your loan balance.
To learn more: 15 vs. 30 Year Mortgage: Myths About Paying Off Your Mortgage
Want the most effective and radically simple marketing system in existence? Today, we’re talking with Mike Michalowicz, perennial best-selling author of Profit First, Surge, The Pumpkin Plan, FixThis Next, and his newest release Get Different.
https://www.youtube.com/watch?v=4LENRtB7xGY
If you want to scale your business and reach more people, here’s the answer you’ve been waiting for. Tune in now!
Table of contentsWhy Marketing Blends Into the BackgroundThe Problem with Email MarketingHow to Break Through the HabituationUsing the DAD MethodHow to "Get Different"Overcoming the Fear of Being DifferentSuccessfully "Get Different"Get Different with Mike MichalowiczAbout Mike Michalowicz Book A Strategy Call
We love having Mike Michalowicz as a guest because he knows and understands entrepreneurs like you! Mike has joined us before to discuss his books Profit First as well as The Pumpkin Plan, and now we’re excited to talk with him about his latest book, Get Different!
This book is all about how to stand out and be different so that you can not only attract clients and customers, but attract the right ones for you. Marketing is like the lifeblood of any business, but it can be all too easy to lose your “edge.” Mike Michalowicz is here to share his ideas so that you can continue to innovate your marketing strategies.
Why Marketing Blends Into the Background
[2:50] “I discovered this concept called habituation, and how it works biologically is we have a thing called the reticular formation. It’s a neural network, both figuratively and literally; it's a net that sits at the brain stem, and as stimuli come in...its primary job is actually to disregard or ignore most things. It’s the way we maintain focus.”
Without this reticular formation, anything and everything can distract us. Our brain uses this function to manage productivity and focus. Because the daily stimulation from things we experience with our senses is constant. Just imagine all the things you filter out as “normal” in your daily life.
[3:25] “So the job of the reticular formation is to ignore everything unless it meets one of three qualifiers. Threats get prioritized—our safety depends on it, so that’s the number one feature. The second...is opportunity. If there’s a known opportunity, we will pursue it. And there’s a third way through, and it’s the unknown or the unexpected because our mind then needs to open up and say is this something I need to consider as a threat or opportunity? Everything else is ignorable. And this happens on a subconscious level.”
A great example Mike shares is how we filter through junk mail. It’s amazing how quickly people can rifle through their mail and pick out the garbage from the important pieces, with very little information. The only things that make us stop in our tracks are the things that stand out from what we’re used to.
The Problem with Email Marketing
Now, more modern forms of marketing, like email, are facing the same problems. People have become so accustomed to certain practices that they can filter out “junk” in milliseconds. Mike reminisces about the first time he got an email with the subject line, “Hey Friend.” It was novel and created a sense of kinship. Then he opened it and realized it was a marketing message. As this continued to happen, it got easier to filter out emails that started with this as being “junk.”
This is an experience that most people with an email address can relate to. And it’s therefore no longer a very effective way to market through email. The same goes for dozens of email strategies. Yet they’re still commonplace, and marketers still teach these methods to entrepreneurs.
As consumers, we all become habituated to certain marketing messages that our reticular formation has learned to filter out. It’s not a threat or opportunity, so it's unnecessary knowledge for our brain to spend time on.
[4:43] “Our job when we market our business,
Want to get an insider’s look at an IBC policy? When it comes to how the Infinite Banking Concept works, the magic is (mostly) in the paid-up additions or PUAs.
https://www.youtube.com/watch?v=1_tJHiD61FU
Let’s go to the IBC lab and talk about PUAs today. What are they, and how do they impact your whole life insurance policy?
So if you want to understand just how valuable these three letters are, how they add access, growth, and flexibility to your policy… tune in now!
Table of contentsWhat are PUAs?How Do Paid-Up Additions Enhance Your Life Insurance?The Difference Between Base Premium and Paid-Up AdditionWhat Are premium splits?Book A Strategy Call
What are PUAs?
The acronym itself stands for Paid-Up Additions; and they can add a lot of growth, access, and flexibility to your life insurance policy. If you’re interested in setting up a policy for the purpose of creating an infinite banking system, it is essential to understand the importance of PUAs.
As you may be able to guess, PUAs are additional coverage on your life insurance policy that you can buy. In other words, you’re adding additional life insurance coverage that is completely paid up and requires no further premiums. As you add PUAs to your policy, you’re thus incrementally increasing the impact of both your cash value and death benefit.
Nearly any contract has the ability for PUAs, however, the mechanics can vary from policy to policy. The company, for example, also establishes how much additional coverage you can purchase within your contract--as well as when and how you purchase it.
How Do Paid-Up Additions Enhance Your Life Insurance?
Let’s think about this from a real estate perspective for a moment. If you bought a residential property, you’ve bought an asset. Whole life insurance is also an asset—as you pay premiums, you’re building up equity like you would in a home.
Then, let’s say you want to build an addition to this residential property, in order to add value. In this instance, let’s say you add a $10,000 sunroom, and have an appraiser check it out. If the sunroom is well done, your appraiser might tell you that your value went up by $40,000. The same happens when you purchase a paid-up addition. That $10,000 PUA could add around $40,000 to your death benefit, or the total coverage of your insurance policy. Not to mention that an increase in death benefit also positively impacts the efficiency of your cash value build-up.
Here’s where things get really interesting. Upon the appraisal of your residential property, you could then go to the bank and say, “Look, the value of my property has increased. I’ve paid for the addition out of pocket, could you lend me money based on what I spent on the addition?” The bank could then lend you a portion, or the full value, of that $10,000 to create more value. Life insurance works the same way. The $10,000 is your premium for the PUA, and a portion of that is available to you as a loan against your cash value.
In both scenarios, the $10,000 you pay increases the value of your asset by $40,000. This makes it easier for a bank or insurance company to lend to you because they know that even if you default on the loan, there’s additional value there as collateral.
The Difference Between Base Premium and Paid-Up Addition
Base premium is the money you pay to obtain your life insurance coverage to begin with. The base premium that you pay is what largely contributes to your long-term growth, dividends, and death benefit. PUAs, on the other hand, will contribute more heavily to your early cash value accumulation and less to the death benefit.
This is because your base premium is designed to cover the cost of your insurance first, with anything leftover contributing to your cash value. This is because the risk to the life insurance company is greater in the early years. In other words, if you were to die in the first few years of the policy,
Would you like to make better investment decisions?
https://www.youtube.com/watch?v=5sML_fmFh2s
Today, we’re talking with Kent Ritter, full-time real estate investor and operator of Hudson Investing about scaling and diversifying your real estate portfolio.
So if you want to expand your investing perspective… tune in now!
Table of contentsHow Kent Ritter Got StartedMoving From Passive to Active InvestingTaxes in Active and Passive InvestmentsThe Pros of Multifamily Real EstateWhy it’s a Good Environment for Multifamily Real EstateHow Long Should You Hold Your Properties?Where to Invest in Multifamily Real EstateConnect with Kent RitterAbout Kent RitterBook A Strategy Call
How Kent Ritter Got Started
In 2010, Kent started as a partner in a boutique management consulting firm, before exiting in 2015. In that timeframe, he helped build the business to over $30 million in annual revenue, with 95 employees.
After the successful sale of the business, Kent was left with a decision. He had capital, now he had to decide what to do with that capital. He didn’t want to put all his eggs in one basket and certainly didn’t want to ride the stock market roller coaster. In his journey to diversify, he started looking at alternative investments before finally landing on real estate.
As he developed his real estate knowledge, he quickly gravitated toward multifamily properties. This love of multifamily properties helped him to move from passive investing through syndications to a more active role in his investments, and sponsoring his own syndications.
Moving From Passive to Active Investing
Passive investing, in this context, is where you’re investing your own dollars into an existing deal—through a deal sponsor or syndicator. This person is finding and putting the deal together, and you’re joining by adding your dollars to the pool. The syndicator is responsible for the active elements, including finding the property, securing the debt, and determining any renovations.
Even as a passive investor, you’re part owner of that property, so you receive distributions from the profits. You also share in the appreciation at the time of sale. So passive investing in syndications like this really allows you to learn more about the experience, without the responsibility of putting the deal together.
As Kent built up his own base of knowledge, he was able to move into a more active role. In other words, finding the properties, creating a plan for value-add, and securing investors to help make it happen.
Taxes in Active and Passive Investments
As someone who has invested passively and actively, Kent touches on the tax implications of multifamily real estate.
[7:59] “When you think about taxable income, you think about three buckets. There’s your...ordinary income, which is typically your active income, right? Your W-2 job...or from the property standpoint, the profits that the property is throwing off...Then you have your passive bucket, which would be your investments in things like rental properties...Then you have your portfolio income, which is like your stocks and your mutual funds...When you think about it from a tax standpoint, one of the biggest advantages of real estate is the ability to...pass through the depreciation.”
In other words, being able to offset your gains by getting the depreciation helps you save money in taxes. And many times, you have carry-over losses. Those carry-over losses are different depending on whether you’re investing actively or passively. This is based on your investor status.
The IRS defines Kent as a real estate professional because all of his investments are in real estate, and that’s his income. So all three of those “income buckets” he mentioned can be offset by depreciation. Passive investors will partake in those deductions differently based on how their income is structured and where it comes from.
The Pros of Multifamily Real Estate
Are you planning to have multiple IBC policies, and don't know where to start?
If you’re already a few years into using the Infinite Banking Concept, you’ve seen and experienced the power of storing cash in a whole life policy. You’re earning interest and dividends, have exceptional compounding power, and guaranteed access to use your money. You’re also watching the death benefit increase.
https://www.youtube.com/watch?v=nugZZ1HcrY8
Now you want to store more cash. It’s time to think about how to use all your policies well and maximize their capacity.
Today, we’re continuing the conversation in our series about how to take your Infinite Banking to the next level. In the last episodes, we dug into how to maximize your current Infinite Banking Policy. Then, we talked about insuring other family members, like children and grandkids. Now, we’ll talk about managing multiple policies.
So if you want to hear about what to do after your whole life insurance policy is already working… tune in now!
The Problem of Information
“The internet has allowed us to be drowning in information while starving for wisdom.”
That’s the unfortunate truth of the internet—everything seems like it is generated for clicks. That's why we are striving to help impart wisdom so that you can make the best decisions for your family today. The purpose of today's content is to help you take ACTION. Because too much information can cause inaction.
Storing Capital
Everybody has a need to store capital. And there are many financial institutions that allow you to store capital: banks, insurance companies, Wall Street, pension plans, and your own home. The real work is in evaluating where your capital should go, in order to do what you want it to do.
Remember: what is the purpose of your money?
Once you’ve identified what your money should do—evaluating the WHERE becomes simpler. And while there’s no perfect solution, there are products with flexibility and control. Primarily, cash value insurance offers you liquidity, safety, growth, and certainty. More importantly, it can offer you flexibility and control.
It’s important that when your future is uncertain, you have something that IS certain. You may not know how much money you’ll have in the future, or what your job will be, or how your family will grow. But by having cash value life insurance policies, you WILL know that you have money you can use strategically. You won’t lose it if the stock market crashes, it will continue to grow, and you don’t need permission to access it.
How do you have the best-case scenario no matter what happens?
The Purpose of Your Policy
If you do not believe in the death benefit, and you’re only worried about the cash value, then you should just keep your money in the bank. Rodney Mogen, who has joined us on The Money Advantage before, has expressed this sentiment. And we fully agree. While it’s easy to talk about the benefits of the cash value in terms of infinite banking, it’s harder to talk about the death benefit.
You can likely imagine why, as talking about death is often uncomfortable. We don’t like to think about our own deaths, let alone the deaths of our loved ones. But it’s an essential component of life insurance that helps protect the people you love from loss of income.
So if you’re only interested in life insurance because of the cash value, and you’re not invested in the protection component, how likely are you to maintain your policy?
It becomes easier to manage a system of policies when you are also thinking of the generational impact. In other words, the income protection from loss of life, and the transfer of wealth that occurs therein.
Why Take a Policy Loan?
It’s simple: control. It’s popular now to use your cash value as collateral, in order to take a lower interest rate. Why pay the life insurance company 5% when you can pay the bank 3.5%? The answer is, it depends!
It can often seem that there’s a tradeoff between money and relationships, that you get one only at the expense of the other. But if you want to succeed in both critical life categories—you want thriving relationships you feel great about, and to live at the peak of your financial performance, you need wisdom that’s greater than both to get there. Today, we’re talking with Rabbi Daniel Lapin, author of Business Secrets from the Bible, Thou Shall Prosper: Ten Commandments for Making Money, and The Holistic You.
https://www.youtube.com/watch?v=2BUWOoOmKFo
We’ll discuss why you need a holistic view of your financial performance, and how it relates to your family, friendships, and other relationships. This is ancient Jewish wisdom and Jewish financial principles for success in life.
If you want to feel good about your money and use it to benefit your family for generations to come… tune in now!
Table of contentsThe Holistic YouDebunking the “Scrooge”What is Business?Charity Requires ResourcesWhat is a Happy Warrior? Why You Need to be a WarriorFinding BalanceThe Pathology of PovertyImprove Your Relationships, Improve Your LifeRabbi Daniel LapinBook A Strategy Call
The Holistic You
The last time we had Rabbi Lapin as a guest, we had a fantastic time discussing Thou Shall Prosper, and the biblical wisdom of wealth. We’re delighted to welcome him back now to discuss another of his books, The Holistic You.
This book is a manual for integrating wealth, family, faith, and more—in a way that is fulfilling. Sometimes it can feel like juggling practice, so we’re excited to take a look at Rabbi Lapin’s wisdom in finding balance.
Rabbi Lapin came into this field because he found himself speaking to largely Christian audiences and was frequently asked, in earnest, why Jews seem to be disproportionately good with money. Without taking offense, he realized that it was a question worth pondering, and so he began to look for answers within scripture.
Debunking the “Scrooge”
[11:23] “[Business] is one of the only areas of activity where doing well is a function of being good. And this is a very hard thing for people to hear because they love the idea of Scrooge—the horrible, selfish, [inaudible] millionaire.”
In business, reputation is actually one of the most important aspects. Because those with poor reputations don’t last long in business. So the idea of the curmudgeonly Scrooge is a fantasy. In reality, businessmen strive to have good relationships, because what happens when a reputation goes south? Investors pull out, and money flows away from the company.
You can be an actor or a tennis player with great skill and manage to find success with a bad reputation. Business cannot be the same.
What is Business?
[15:20] “Business is just a technical term for people being nice to each other… Whether you like it or not, we happen to live in a world where... we are incentivized to be nice to other people with an incredible blessing called financial abundance... Business is becoming as useful as you can, to as many other people as possible. What could be more beautiful?”
Rabbi Lapin continues by saying that this is something that God smiles upon, because “Our Father in heaven is not so different from our fathers on earth.” In other words—all fathers prefer when their children get along.
However, some believe that because business owners are making money by doing so, it morally discredits the entire process. To that, Rabbi Lapin shares the story of a woman he knows, who battled cancer and survived. And to her, it was important that she find a wig that was comfortable and natural-looking so that she could restore a sense of normalcy to her daily life.
She searched high and low for the perfect wig, and once she had found one, began importing them. Then, she returned to her cancer treatment center and proposed a setup to help patients find a wig that suited them,
Are you already a few years into your first IBC policy, and you’ve experienced the power of storing cash in a policy? Maybe now, you want to store more cash. Is it time to start another policy? Should you insure yourself, your spouse, kids, or grandkids? Why? How does it work when you build a system of policies? Should you even have life insurance for children?
https://www.youtube.com/watch?v=sKq1QNKZnUc
Today, we’re continuing the conversation in our series about how to take your Infinite Banking to the next level. Last time, we dug into how to maximize your current Infinite Banking Policy. We’ll talk about private family banking and insuring other family members, like spouses, kids, and grandkids. In our third and final part, we’ll talk about managing multiple policies.
So if you want to hear about what to do after your first whole life insurance policy is performing well… tune in now!
Table of contentsLife Insurance Isn’t Just About DeathHow to Reframe Your Insurance MindsetBuilding a Portfolio of PoliciesWhat is the Benefit of Insuring Yourself First?Order of InsuranceAre You Insurable?Should You Have Life Insurance for Children?How to Insure Your GrandchildrenFind Your Human Life ValueBook A Strategy Call
Life Insurance Isn’t Just About Death
We hear it all the time—“I don’t want to think about death.” This can be especially true when life insurance for children enters the discussion. However, life insurance isn’t just about death. When used correctly, it can provide liquidity and certainty... and peace of mind.
It might also surprise you to learn that cash value life insurance is useful in teaching children good money habits. This is a key in family banking strategies and building generational wealth. If you’re skeptical, we understand—and that’s exactly why we’re going to be digging into the topic today.
How to Reframe Your Insurance Mindset
Today, most financial planning involves saving for a future goal—retirement, college, etc. In turn, this often means locking money up in qualified plans like a 401k or 529 plan, where it’s inaccessible for long periods of time. While saving is better than the alternative, the problem is that these accounts offer little flexibility. And what is life if not an exercise in flexibility?
After all, things happen all the time that we cannot predict—unexpected medical expenses, job loss, and economic crises, as well as investment opportunities, extra vacation time, and more. But what happens when you don’t have the capital? Unfortunately, you have to make sacrifices or pass up on rare opportunities.
Cash-value life insurance—and in particular, infinite banking strategies—offers a solution. It gives individuals and families a way to save money without locking those dollars away. The cash value component is liquid and out-earns typical savings accounts. And, you can use the money at any time, for any reason. This means that you can cover unexpected emergencies and opportunities.
Yes, there’s a death benefit, but there are living benefits too. And while thinking about death can cause a lot of emotions to bubble to the surface, it’s an event none of us can avoid. Thinking about it as a logical protection mechanism, rather than an omen, can help you combat any misgivings. And in the long run, you’ll have financially prepared your loved ones for what will be a difficult time.
Building a Portfolio of Policies
Over the course of your life, you’ll likely be entitled to more insurance. In the first part of our IBC 201 discussion, we talked about the importance of insuring up to your Human Life Value. This will change over the course of your life. The tricky part of building an IBC portfolio is knowing who to insure, at what time, and in what order.
If you’re considering another life insurance policy, you can own a policy on someone other than yourself. This means that while you may make the ...
Want to scale your real estate investing business, and make more money? Today, we’re talking with Gary Boomershine, CEO of RealEstateInvestor.com, who has created software to grow your real estate business, services to scale your income, and coaching to help you achieve the freedom you deserve.
https://www.youtube.com/watch?v=A6rN8gE4MrU
If you’re an investor or business owner who wants to create the life you envision … tune in now!
Table of contentsThe Three “Buckets” of Real Estate InvestingBeing Self-Employed vs. Being a Business OwnerKnowing Your WhyThe Power of Passive IncomeLeverage Money AND TimeReal Estate CyclesScaling Your Real Estate Investing Business with Infinite BankingThe Real Estate InvestorAbout Gary BoomershineBook A Strategy Call
[4:10] “Every professional athlete, every musician, everyone has a coach...even Google.”
If you are going to start a business, why wouldn’t you have a coach as well? Gary Boomershine started in the industry doing a dozen different things. It wasn’t until he had a coach that he learned to exit the rat race.
[8:50] “In real estate, the key is being able to find the deal...And right now in real estate, it’s really hard to go find the deals.”
This is part of how RealEstateInvestor.com got its start—as a tool to find off-market deals.
[9:22] “As an entrepreneur, and building a business, every business needs a CEO. And if you’re a CEO doing ten dollar an hour work, you’re going to have a ten dollar bank account. So as a CEO, you’ve got to actually run the business as a CEO.”
The role of the CEO, as Gary defines it, is to create leverage. A CEO leverages other people’s money and other people’s time. That way the CEO can do more, without doing everything alone. Otherwise, you run the risk of a JOB, which Gary defines as “just over broke.”
The Three “Buckets” of Real Estate Investing
[11”10] “There’s three main buckets people should be thinking about in real estate. There’s cash now, cash flow, and cash later.”
The “cash now” category is what Gary Boomershine distinguishes as real estate operators, rather than real estate investors. These are the people who do wholesale deals or fix-and-flips. In other words, they buy low-value properties, make improvements, and sell them. They’re investing for a one-time transaction—so if they stop doing what they’re doing, they stop making money.
Then, there’s cash flow, which is a monthly stream of income. The most common cash flow real estate investment is rental property. The investor buys the property and rents it out, and that monthly rent pays the mortgage and creates income for the investor. Private lending is another cash-flowing real estate deal.
Then, there’s the cash later category. This type of income typically comes from inflation or appreciation, as well as equity. To truly scale your real estate investing business, all three components are needed--though passive income is the key to unlocking wealth.
Being Self-Employed vs. Being a Business Owner
Robert Kiyosaki’s cash flow quadrant is the process of moving from having a job to being an investor. And as Gery Boomershine puts it, real estate operators are in the “self-employed quadrant.” They’re in a space that has more freedom than being an employee, yet are still trading time for money. RealEstateInvestor.com is designed for these operators, to help move them into the business owner quadrant, and finally the investor quadrant.
[17:30] “Everybody gets in [to real estate] and they’re like—How do I do a rehab? How do I wholesale a property and make some money?...No, what you want to do is stand back and say, what do you want? What do you want for your life, right?... Because at the end of the day, we’re looking for financial freedom and a life of time. The most valuable commodity is not the money, it’s the time.”
Knowing Your Why
The solution to this problem of “how,” is by defining your “why.” Why are you in the game,
Do you already have your first IBC policy, and want to take it to the next level? Maybe you’re a few years in and you’ve seen and experienced the power of storing cash in a policy. You’re earning interest and dividends, have exceptional compounding power and guaranteed access to use your money, and you’re watching the death benefit increase.
https://www.youtube.com/watch?v=WfEVjNWZZ6g
Now you want to store more cash. Is it time to start another policy? Should you insure yourself, your spouse, kids, grandkids? Why? How does it work when you start building a system of policies?
We’re starting a series for those who are already IBC owners and wanting to take their policy to the next level.
Today, we’re digging into how to amplify your Infinite Banking Policy. Next, we’ll talk about insuring other family members, like spouses, kids, and grandkids. Then, we’ll talk about managing multiple policies.
So if you want to hear about what to do after your whole life insurance policy is already working to continue to grow and accelerate its potency… tune in now!
Table of contentsWays to Maximize Your IBC PolicyCatch Up On Any Missed PUAsTake and Repay Policy LoansWhen Should You Add Another Life Insurance Policy?What is Human Life Value?Term, Whole Life, and HLVThe Power of Dividends in IBCIBC Best Practices for Family BankingBook A Strategy Call
Ways to Maximize Your IBC Policy
A common misconception of Infinite Banking is that when you pay back a policy loan, you’re paying yourself interest. This isn’t exactly true, however. When you pay back a policy loan, any interest you pay is to the insurance company. What Nelson Nash talks about in his book is making payments beyond the interest, which can help make your policy more efficient.
The most efficient way to maximize your policy has a lot to do with your Paid-Up Additions. The PUA rider allows you to make extra premium payments in the early years of your policy so that your policy grows faster. If you’re maximizing your PUAs, you’re supercharging the savings component of your policy.
In the early stages of your policy, it’s crucial to maximize your PUAs for as many years as you’re able. That’s because, in the early years, you have more certainty. So you’re creating more room for the future when you may not be able to maximize those PUAs.
Catch Up On Any Missed PUAs
If you’re in a position where you were unable to maximize your PUAs one year, you have some time to catch up on those payments. Different companies offer different time limits for how far back you can “catch up.” So if you didn’t fund your policy as much as you could have, you have more room to pay those PUAs. Catching up will allow you to maximize your policy after lean years.
It’s also important to note that the catch-up provision has some limitations. For example, the amount of premium you’re allowed to catch up each year is based on the average of what you’ve contributed the previous 7 years. This ensures that the insurance company stays viable—which is good for you and all policyholders.
Take and Repay Policy Loans
Another way to maximize your IBC policy is to be a good steward of your policy loans. If you’re a few years into your life insurance policy, there’s a good chance you’ve utilized your loan provision. Maybe you’re even using it to create cash flow. That’s a great sign that you’re on the right track.
The next step in maximizing the effects of your policy is to pay back those loans. Your loan payments may not be scheduled, yet paying back your loans frees up more of your cash value to be used again. This is the true power of an IBC policy.
In a way, it’s like a line of credit, where you pay down your balance to free up money for new opportunities. And have no liquidity fears—the second your payment clears, that same amount of capital is free for you to use again.
When Should You Add Another Life Insurance Policy?
Today, we’re talking with Mike Kitko; author, speaker, coach who helps you lead powerfully, love selflessly, profit shamelessly, and play recklessly. If you’re an elite business owner who wants to break through to success and live soul out… tune in now!
https://www.youtube.com/watch?v=F9Bo-zzgpts
Table of contentsWorking in Your Zone of GeniusBreakthrough to Success and HappinessMike's Personal Breakthrough to SuccessHow Do You Own Your Zone of Genius?Solving the Money MindsetThe Breakthrough to Success Begins with Real LeadershipMike Kitko’s Prosperity PrinciplesGet in Touch with Mike KitkoAbout Mike KitkoBook A Strategy Call
Does success have to be hard? Mike Kitko argues that the breakthrough to success doesn’t have to be! You can make it simple, and today we’re talking about how to simplify your journey to success. It starts with letting go.
[1:48] “For 43 years, I made everything in my life as hard as I possibly could because I was taught...that if it’s not hard, it’s not valuable. And if it’s easy, then you’re missing the point.”
Working in Your Zone of Genius
Your “zone of genius” as defined by Gay Hendricks, author of The Big Leap, is the space where you rely on your innate abilities. Many people call this “purpose,” and when you’re working within this zone, as Mike says, life is easy.
This is where the magic happens, energy is limitless, and synchronicities occur. And yet, because we're conditioned to believe that success is hard, we distrust ourselves when we're in that zone. We are trained to think we have to work hard to be worthy. And it’s the exact opposite of what we should be striving for.
Mike breaks down the steps for working in your zone of genius in this way:
Find and understand your purposeCreate a vision for your life that reflects what you want to experienceUnderstand your desires and know that new ones will always surfaceGet into your flow in your zone of geniusAct from within your zone of genius
[5:50] “Life doesn’t have to be hard. I have too much fun having joy and success and happiness and wealth the easy way. My wife termed them grind gurus and hustle whores. Let all those guys teach everybody... I’m looking for the path of least resistance.”
[13:40] “When you’re in your zone of genius, it’s like time stops and things happen for you and because of you.”
Breakthrough to Success and Happiness
[6:45] “I think the mind has a problem with happiness. The mind creates problems where they don’t exist... We don’t understand what’s happening [in our mind], and we don’t understand how to discipline this, and we don’t understand how to eat the fruit and spit out the seeds... We don’t understand that we can let the thoughts go—the ones that don’t serve, that create struggle, that create stress out of joy and happiness. When we can let them go, we don’t have to follow them into a problem-solving space. You don’t have to solve problems that don’t exist.”
The average human has 6,200 thoughts per day, and we spend so much of our mental energy on our problems. What would happen if you identified the problems that don’t exist and let them go? When we allow our thoughts to have control and run rampant, we drain our mental energy. The breakthrough to success occurs when we can let go of thoughts that don't serve us, or take us down a rabbit hole of worry and doubt.
Mike's Personal Breakthrough to Success
In 2016, Mike Kitko was fired from his second executive level position in 20 months. And it was an easy climb to the top, even though he “made it hard” for himself. And he admits that he was fired because he himself was toxic at the time.
[10:10] “The struggle that I felt inside, and the pain that I felt inside, I wanted everyone else to experience it too. We see in the world what we feel...We experience the world from our internal lens. When we expect life to be hard, or we expect life to be painful, then we see it everywhere and we create it where it does...
Want to use your Infinite Banking policy, but wish you understand the nuts and bolts of how Infinite Banking loan interest works first? Today, we’re answering a question from our wonderful community of listeners:
https://www.youtube.com/watch?v=iFSgJlrjL4U
What’s the policy loan if I wanted to borrow 1K? Are there any interest rates?—Riley Nelson
So if you want to learn exactly how interest works on life insurance policy loans… tune in now!
Table of contentsWhat is IBC?The Power of LeverageDo Life Insurance Companies Charge Interest on Policy Loans?Why Compounding Interest Matters Fixed vs. Variable InterestThe Nuances of Variable Interest RatesHow Companies Charge InterestBook A Strategy Call
What is IBC?
A friend of ours, James Neathery, often says, “If you understand the concepts, the details don’t matter, and if you don’t understand the concepts, then the details don’t matter.”
Ultimately, what he’s saying is that you must ultimately understand the big picture of how and why IBC (Infinite Banking Concept) does what it does. Without that conceptual understanding, the rest doesn’t matter. And so, we’re first going to look at infinite banking or privatized banking on a conceptual level, so that we can get into the weeds.
Infinite banking is an alternative banking position. As we know, banks pay you interest, and they charge you interest. Life insurance companies work the same way. If you have a whole life insurance policy, the insurance carrier will pay you interest and charge you interest.
The power of “banking” with a life insurance company is in the rates, the leverage, and the level of control. To access the cash value of your life insurance, you can take a policy loan. The benefits of a private system is that you do not need permission or approval.
The Power of Leverage
The reason that IBC works in a way that regular banking does not is because of the power of leverage. The rate at which insurance companies pay interest is often far greater than what the banks offer, as well as dividends. This allows for greater accumulation. Then, you can leverage that money to make it do more jobs.
This could mean taking a policy loan at 5% and investing it in real estate at an even better rate. You can then put the monthly cash flow towards the loan repayment and give your money a better rate of return in the long run. And because you’ve leveraged the insurance company’s money (using your cash value as collateral), your policy continues to accumulate interest at its maximum compounding potential.
The benefit is that you’re not JUST putting your money in a vehicle with better safety, liquidity and growth. You also have an ASSET that allows you to accumulate more assets with uninterrupted compound interest.
IBC is not magic. However, it’s a strategy you can use to make your banking more efficient and work more in your favor.
Do Life Insurance Companies Charge Interest on Policy Loans?
Yes, the life insurance companies DO charge you interest. This is because you’re borrowing from the insurance company instead of taking money directly from your cash value. This means that your entire cash value can continue to compound uninterrupted.
Instead, your cash value acts as collateral. This means that your death benefit will be reduced until the loan is paid back. You aren’t borrowing your own money and paying yourself interest, which is a common misconception.
Why Compounding Interest Matters
You might wonder WHY you would want to pay interest at all, when you could just withdraw from a regular savings account. The answer is in the compounding. When you withdraw money from a bank account, there’s less money to earn interest on. As we all know, interest accumulates better on larger sums of money—1% of $1,000 is only ten dollars. On the other hand, 1% of $10,000 is a hundred dollars. At the higher balance, not only are you earning more money—you’re also earning money on TH...
Are you frustrated with the volatility, fee structure, and abstract nature of most investments? Do you feel that you’ve outgrown the status quo investing strategy and want to play a bigger game with your investing? Have you heard of alternative investments, but don’t know where to get started? Do you need investments that are built for high performers like you, who know it’s possible to increase your income today?
https://www.youtube.com/watch?v=np8dmb8n8Cw
Today, we’re talking with Denis Shapiro, Managing Partner of SIH Capital Group and author of The Alternative Investment Almanac: Expert Insights on Building Person Wealth in Non-Traditional Ways.
So if you want to hear about how one investor in the alternative space is helping others with a simplified strategy to invest for passive income… tune in now!
Table of contentsWhat IS An Accredited Investor?Denis Shapiro’s Journey to Alternative InvestmentsHaving a Portfolio with Stocks AND Alternative InvestmentsThe Importance of Building RelationshipsAn Overview of the Asset Classes A Note on Ponzi SchemesThe Give and Take of Alternative Investments Diversify Between Liquid and Illiquid Assets How to Get Involved in Accredited InvestmentsGet The Alternative Investment Almanac by Denis Shapiro About Denis ShapiroBook A Strategy Call
What IS An Accredited Investor?
Accredited investors have certain investment opportunities available to them that the average person does not. Namely, a number of alternative investments outside of the stock market. So how do you know if you’re an accredited investor?
Accredited investor status is actually defined by your income (or Net Worth). Let’s break it down; you’re an accredited investor, as defined by the SEC, IF:
You are SINGLE, and have had an income of at least $250,000 for the past two years, with the expectation to keep earning the same or greaterYour are MARRIED, and have had an income of at least $300,000 for the past two years, with the expectation to keep earning the same or greaterOR, if you have a Net Worth exceeding $1 million.
If you’re an accredited investor, or on track to become one, you’ll want to stick around to learn more.
Denis Shapiro’s Journey to Alternative Investments
In high school, Denis' older brother gifted him a copy of Rich Dad, Poor Dad by Robert Kiyosaki. Yet, he was skeptical of the ideas that Kiyosaki brought forth. His key takeaway, however, was that he should start buying assets--which was a mindset his peers did not have.
So, he started with a mutual fund that didn’t do very well.
That’s when he started to look for a different way, and he experimented with different assets. He also dedicated his college career to finance, which overlapped with the housing crash. When he graduated, the job market wasn’t great, so he decided to continue his education and get his MBA. Eventually, he broke into real estate and started building a portfolio that had stocks AND alternative investments.
Having a Portfolio with Stocks AND Alternative Investments
What Denis found when he had a portfolio only made of stocks, was that he couldn’t do it all. He couldn’t have appreciation and income and tax savings. In reality, though, the stock market just doesn’t work that way. You have to have a truly diversified portfolio to have everything—and that means having a portion of investments that aren’t correlated to the stock market. In other words, the performance of those investments doesn’t depend on what the stock market is doing.
The problem with stocks is that the way they perform can depend on too many external factors. Stocks can drop based on rumors, company reinvention, and so much more. Instead of picking stocks, Denis realized that his stock portfolio performed better when he went with an index fund. Yet his income from that portfolio was still lacking.
His epiphany was that in order to get the most from his index fund,
Are you on track for financial freedom? If you don’t know the answer to this question, you’re not alone.
https://www.youtube.com/watch?v=1uNyH8npUik
Most people think the answer is how much more they have left before the house is paid off, how much left on the student loans, the balance of their retirement fund, the stock market’s performance, the Federal Reserve chair’s economic analysis, or interest rates.
While these things paint the landscape along the road to financial freedom, they have almost nothing to do with your progress. Really, these answers avoid the question.
The problem is that you can do all the analysis and understand the market factors, possibly make a lot of money when times are good, but still have the same nagging fear that you’ll lose it all or lose control. Today, we’re speaking out about the reasons why your financial plan is failing, and why so many good people with good intentions who are doing “all the right things” are still getting derailed.
It’s not interest rates, the stock market, inflation, or having selected the wrong risk tolerance.
So if you want to find out exactly why you’re not where you want to be… tune in now!
Table of contentsThe “Problem” with Financial Advice5 Reasons Your Financial Plan is Failing1. You're Not Taking Action2. You Haven’t Defined What Financial Freedom Means to You3. You’re Distracted4. You’re Guessing 5. You’re Making Things ComplicatedAre You Doing the Best You Can with What You Have?Book A Strategy Call
Do you find yourself asking questions like:
Do I have enough money?Am I managing my money correctly?Do I have enough cash flow?Will I be able to afford retirement?Can I put my children through college?Am I going to be able to grow my business the way I want to?
If you are, first know that you’re not alone and that there are solutions for you. Your financial experience doesn’t have to keep you up at night, and we want to help you jump over any hurdles on your path.
We know that there are financial struggles at every income level—no matter how well someone appears to be doing from the outside. And in the same vein, there are also solutions at every income level.
In today’s post, we want to address the five reasons your financial plan is failing, so that you can rectify them and get back on track to financial freedom.
The “Problem” with Financial Advice
Financial advice can be tricky because there are so many moving parts. You could talk with a broker and get one strategy, a CPA and get another, and a life insurance agent and get something completely different! Not to mention, when you go online and do the research yourself, you’ll read hundreds of conflicting viewpoints.
It can seem like there are no right answers, or that you have to have a degree in finance or economics to really understand anything, yet that’s not true. We want to help you sift through the noise and put together something cohesive that works for you.
First things first: you don’t have to do it all or start by doing everything. Sometimes mastering one strategy, and making it your own, can make a huge difference. Find something or someone that aligns with your values, and start somewhere.
5 Reasons Your Financial Plan is Failing
- You're Not Taking Action
When it comes to your financial future, one of the best things you can do is take action. If you let fear of failure keep you in a state of inaction, you can hinder any forward momentum. It’s important to acknowledge the things you’re afraid of—like losing money—so that you can take actions that will better your odds and your current circumstances.
Because the reality is, there are too many variables outside of your control. The stock market and the economy will continue to change, even if you don’t take action. So what actions can you take to protect yourself and your finances now, so you can make riskier decisions with greater confidence?
2.
How do you create a healthy relationship with money that serves you? Today, we’re talking with Bob Wheeler, author of The Money Nerve, about how to create radical abundance.
https://www.youtube.com/watch?v=YczbRpnO0E4
Bruce and I recently had the pleasure of joining Bob on his podcast, Money You Should Ask, and we just knew we had to share him with you. After all, how many CPAs do you know with a great sense of humor? We hope you’ll enjoy our delightful and humorous conversation with Bob about the feelings we have about money.
So if you want to feel good about your money… tune in now!
Table of contentsThe "Money Nerve" Behind the MoneyAn "External" View of Money(There is No Finish Line)Abundance is About PerspectiveWhat is a Money Nerve?Overcoming the Money NerveAbout Bob WheelerBook A Strategy Call
The "Money Nerve" Behind the Money
When Bob initially became a CPA, what he found was that people continuously made money decisions that weren’t in their best interest. They would receive advice, then do the opposite. Bob himself wasn’t doing well financially and he was making seemingly simple mistakes. So he decided to do the internal work and look at his emotional motivations, so he could learn why he was seemingly “self-sabotaging.”
[4:35] “It all started to become really clear to me that we’re all working on these unconscious, emotional money beliefs and money blocks that we’ve been carrying since we were probably five, six years old. And we have to unpack that, for many of us, to go forward.”
This research has helped Bob unlearn his own emotional blocks, as well as improve his client’s views of money, and break down the stigma and money shame so prevalent in our world today. And it led to his book, The Money Nerve.
An "External" View of Money
Beyond shame and guilt, the way we view other people’s money needs a huge overhaul. How many times have we judged someone by their home, or their car, and placed a certain value upon that? Not only do we believe that people with more must be happier, and label things as a solution to our problems. We also believe that at a certain income level, problems will cease.
Yet this doesn’t really address the root of the problem—and that is, once again, the way we as a society feel about money. A certain income level does not define wealth, although it is easy to believe—true wealth involves what you can do with what you have.
[6:23] “Social media, and our culture, really cultivates this [idea] that you have to be successful and you are your assets, you are your accomplishments...I think what happens is, we don’t stop and take a look and say—Wait a minute. That person with that jet and that fancy mansion also has incredible debt or something. Or they inherited it, and they feel incredibly shameful, and guilty, that they’ve taken on all these assets that they don’t deserve.”
Social media is an arena we use to show the best of ourselves. Most people don’t share their credit card debt or how close to bankruptcy they are on Facebook. So we can’t judge by what we see on social media. Even the person with the best life you know has carefully cultivated their online presence.
(There is No Finish Line)
[9:25] “Everybody’s trying to get to the finish line. The thing is, I don’t want to get to the finish line—that’s my last breath. I want to have as much fun on the way to the finish line. For me, that’s where life exists, is on the way to the finish line. I think with athletes and these folks that can be in the moment, they’re conscious of that. I think most of us are unconsciously thinking—I gotta get there, I gotta do this, I gotta hit my mark—and so we’re unconsciously trying to get there instead of realizing... we’re here.”
Abundance is About Perspective
Abundance thinking is a bit of a misnomer, because so often people attach a number to abundance, and attempt to quantify it. What’s truly great about abundance thinking is that there is...
We like to ask our audience, what is your biggest challenge with building wealth, and we receive so many insightful questions. Today, we’re answering a question from Matt about how to create a balanced wealth portfolio.
https://www.youtube.com/watch?v=zZztP3WOhF4
So if you want to make sure you’re thinking through all the pieces of your financial plan and doing the best you can with your money for today and for the future, tune in now!
Table of contentsAnswering a Viewer QuestionStarting with “Why”Having Cash for Emergencies and OpportunitiesMindset Matters for a Balanced Wealth PortfolioFixing Money LeaksAsset ProtectionYour Financial PictureThe Right Financial Vehicles for a Balanced Wealth PortfolioBook A Strategy Call
Answering a Viewer Question
We love when our audience asks questions, and we often answer them live in our recordings. However, we recently received a question from a viewer named Matt, and we thought it was a wonderful opportunity to dig into the topic more thoroughly.
Matt asked, “How [do I] create a balanced wealth portfolio that includes a mixture of short, mid- and long-term savings for now and the future?
[I’m] weighing between
Backdoor Roth (for someone that has been funding a Roth for 20yrs)401k....where to stop....do you fund just to your match? Or what’s the income level where a couple loses the tax advantage of FULLY funding (I was always taught, get to a point where you can fully max for tax savings... but now I’m not sure)Independent stock investing in a basic brokerage accountWhole life Cash Flow accounts (when does it make sense to [add] this into one’s investment strategy).”
If you’ve been thinking about how to do the best that you can with your money, this is the post for you.
Starting with “Why”
Financial advice is not one-size-fits-all… although it’s often talked about as though it is. The reason it isn't is because everyone has a different set of goals, as well as different financial histories. That's why it is so important to understand your “why" when building a balanced wealth portfolio. What are you saving for, and why do you want to optimize your money? In other words, what is the purpose of your money?
Retirement is one of the most frequent savings benchmarks, yet it’s an incomplete goal. Retirement means different things to different people. The FIRE movement seeks to “retire” at 40, but most of them only retire from a job they don’t like. They continue to work in other capacities—filming videos, writing blogs, and managing investments. The underlying reality is the importance of finding fulfilling work, and creating enough cash flow to enjoy life in the moment rather than a future date.
To other people, retirement means quitting work completely at the age of 65 or so. However, life expectancy is beyond age 100. That means that many people need to save enough money over 40 years of working to retire for another 40 years. That can be a challenging accomplishment.
The answer for many is somewhere in the middle. Finding work that is fulfilling (and constantly reevaluating that fulfillment), optimizing your dollars for more freedom, having more control, and creating more opportunities.
Some people may have entirely different goals. Therefore it's crucial to ask yourself—What is the purpose of your money?
That purpose could be:
Freedom to spend your time and money how you wantPutting your children through school or funding their passionsTravelling more now, rather than later
The clearer you get on the purpose of your money, the easier it will be to tailor your portfolio to YOUR wants and your current financial picture
Having Cash for Emergencies and Opportunities
When we hear concern about having short, medium, and long-term financial success, what we hear is a desire for an emergency and opportunity fund. To have cash on hand for unexpected costs like car or home repairs,
Want to grow and scale a profitable business? It’s just like growing a giant pumpkin! Back on the show after discussing Profit First, we have multi-best-selling author Mike Michalowicz to discuss some of newest books: The Pumpkin Plan, and Get Different.
https://www.youtube.com/watch?v=it6WjNmBU7A
I promise, a few minutes with this guy and you’ll have a whole new perspective on your business.
So if you want to transform your business, find out how to hit your sweet spot where you’re serving clients you love, profitably, and marketing in a way that always gets results… tune in now!
Table of contentsWelcoming Back Mike MichalowiczStand Out from the CrowdWhy You Should Profit FirstThe Mindset ShiftThe Pumpkin Plan1. Match the seed to the soil. 2. Pruning.Creating JobsA Special OfferAbout Mike Michalowicz Book A Strategy Call
Welcoming Back Mike Michalowicz
For the second time, we’re excited to welcome Mike Michalowicz of Profit First back to The Money Advantage. You can read more from his first interview here. We’re fans of Mike because he helps entreprreneurs bring profit into their business FIRST, so that they can help more people.
It’s like putting on your own oxygen mask first, so that you can help others—you’ll do more good for more people when you take care of yourself and your business.
Stand Out from the Crowd
Mike recently asked his clients, “What is your biggest struggle right now?” And for most, their pain point was that they weren’t getting consistent quality in lead flow. This prompted Mike to consider what the root of the problem was.
He determined that industry “best practices,” after some time, become a prime example of what NOT to do. That’s because once they’re adopted throughout the whole industry, everyone's the same. And prospects are seeking someone who stands out—someone who they perceive as uniquely positioned to help them with their problems.
[3:23] “Do you vaguely remember getting that first email that was like, ‘Hey friend’?”
In Mike’s example, he recalls how excited he was to receive his first “hey friend” email. The initial feeling was one of excitement and belonging, until he opened it and realized that it was just marketing. The second time he got an email with that subject line, he was more cautious. And by the third, he stopped opening emails with that subject line altogether.
We’re sure you can relate.
[3:57] “That points to the power of habituation. Meaning when we, the prospect, see something, we very quickly learn to qualify it as relevant or irrelevant. And ‘hey friend’ is irrelevant. What I researched was how to break through the habituation. Best practices are the ‘hey friend’s’ of the world.”
Why You Should Profit First
[5:30] "Every time you...sell something, you have a responsibility to deliver up what you sold--that product or service. So the more we sell, the more responsibility we have. And as small business owners, that’s more and more weight on our shoulders. It starts to show the cracks in the foundation. We don’t have the deliverable systems in place, the sales aren’t profitable. So we’re putting more burden on the organization, without extracting health.”
So instead of placing all focus on sales, new businesses should actually be focusing on profit (first). Once profits are in place, sales and efficiency can come next. Otherwise, having attention too divided can be dangerous.
The Mindset Shift
[7:37] “Most entrepreneurs and business owners, like us, call ourselves entrepreneurs and business owners. I believe hose words have become bastardized. An entrepreneur is about hustle and grind, how bad do you want it, workaholism. And I think that’s a horrible thing to put out into the market. I think what we are about is, we’re a creator of jobs. Our job is to create a business that actually provides for people who want jobs. The way to make this mindset shift is to frame it with a different word.
Ever wonder if the rich and famous use life insurance?
https://www.youtube.com/watch?v=rWNYEK6iuio
Life insurance is a private asset. That’s why you don’t hear a lot about it in the public arena. But wouldn’t you love to hear how life insurance is being used in the lives of people whose names you’d recognize?
Today, we’re talking about some life insurance that’s as close to the spotlight as you get—coach of the Michigan Wolverines, Jim Harbaugh agreed to have his compensation package include life insurance.
Today, we’re going to talk about one case where life insurance was used as executive deferred compensation that benefits both the employee and the employer.
So, if you’d love to see how other people are using life insurance, join us for the conversation!
Table of contentsWhy Don’t More People Talk About Life Insurance?Jim Harbaugh’s Life InsuranceBenefits for Harbaugh’s HeirsA Creative Way to Use Life InsuranceA Split-Dollar ArrangementOther Successful Uses of Whole Life InsuranceBook A Strategy Call
Why Don’t More People Talk About Life Insurance?
Well, likely because it’s such a private asset. Whole life insurance shields policy owners from creditors, is not reported to the IRS, and it doesn’t have to be included on FAFSA forms. In fact, it can’t be used in lawsuits either. The privacy afforded by whole life is so valuable, and yet it also means that unless someone talks about their own experience, there’s no way to Google how much insurance someone has or doesn’t have.
By its nature, insurance is private—which means people who have it tend to be private about it. Now that someone in the spotlight—Jim Harbaugh—has publicly spoken about life insurance, it’s a little easier to put it into context for you.
Jim Harbaugh’s Life Insurance
Not only is Jim Harbaugh being paid $5 million a year as a coach for the Michigan Wolverines, but Michigan is also helping him start a life insurance policy as part of his benefits. They’ve loaned him $4 million to start a policy and $2 million a year for the following 5 years.
The ability to leverage his policy means he can take loans without incurring income tax. And as long as he keeps his policy in-force, he does not have to repay the loan from the school until he passes on. A portion of the death benefit will pay it off.
This is what we call a win-win situation—where the school has a near-guarantee to receive their money back, they’ve secured Harbaugh as a coach, and Harbaugh gets the benefit of a policy.
Of course, there are stipulations to this contract. If Harbaugh leaves his coaching position before the contract is up, he will have to repay the premiums loaned to him upon termination or resignation.
Benefits for Harbaugh’s Heirs
Not only will Harbaugh benefit, but this arrangement actually acts as significant protection for his heirs. If Harbaugh were to pass on while Michigan is paying for the policy, they won’t be disinherited. They will receive no less than 150% of the premiums paid on the policy.
That means, if Harbaugh were to pass, and Michigan had paid $10 million until that point, his heirs would receive at least $15 million. The payout would also help the university recover what they had loaned him, and be able to cover the cost of replacing him.
A Creative Way to Use Life Insurance
Ultimately, not only does this move allow Harbaugh to earn more money, as well as leveraging power; it also allows the University to invest in him through a dividend paying policy.
A Split-Dollar Arrangement
A split-dollar agreement is a way of structuring life insurance, where the employer and employee determine who will pay what. Then, they determine how much of the cash value and death benefit each party is entitled to.
This type of arrangement allows employers to offer competitive benefits to their key employees. One reason is because insurance isn’t beholden to the same regulations as a 401(k) plan,
Need capital in your business, fast? Today, we’re talking about another way to get a capital infusion through business credit.
https://www.youtube.com/watch?v=J_qT49JxLlI
The problem is that most business owners who want financing don’t get as much as they could, because they haven’t worked on the qualification process.
That’s where CreditSuite can help. Ty Crandall has become a recognized authority in business credit building, business credit scoring, and business credit repair. So if you want to improve your fundability, build business credit, or get loans and credit lines… tune in now!
Table of contentsBreaking into the Business Credit WorldCredit ReportingBusiness Credit vs. Consumer CreditThe Right Time to Build Business CreditBusiness Credit Cards vs. Consumer Credit CardsLeveraging DebtBuilding Business Credit Separate from Personal Credit1. Create Separation2. Get Your Credit In Line3. Find Companies that Report to Business Credit Reporting AgenciesFinding the "Sweet Spot"4. Start ImmediatelyBusiness Credit Gives You OpportunitiesTy Crandall’s OfferBook A Strategy Call
Access to cash is critical for a business owner. While you don’t want to rely solely on credit for your business cash flow, you don’t want to be stuck in a spot where you need it and don’t have it.
Breaking into the Business Credit World
Ty Crandall's first company was a mortgage company that he quickly grew into a 7-figure company. And he rode that wave right up until the subprime mortgage crash, when things started to go south. While he thought he had access to plenty of capital, it turns out that wasn’t the case. After a few late payments, as he figured out how to navigate a failing business, the unexpected happened.
His credit card companies actually shrunk his credit limit down to what he owed, so that he could not spend anymore, which effectively tanked his credit score. Then they pulled the money out of his personal bank accounts, depleting his cash stores.
When something like this happens, other areas of your life can snowball—checks can bounce, and you can’t use credit to get out of the hole.
Ty worked overtime to get out of this hole, but he couldn’t find quality credit information anywhere. During this period, he learned about business credit, and realized that the information was nearly impossible to access. So he decided to compile information about business credit himself, and begin teaching people how to use it and why.
Credit Reporting
Many people don’t understand the scope of credit reporting, because it happens in the background. Ty shares that a lesser known practice of consumer credit reporting is transparency from company to company. So if you have a late payment on one credit card, and not the others, the other companies will still know because it's in your report. Since all the companies have access to this information, your other credit providers can choose to lower your limits on that reporting alone.
That’s what happened to Ty when his credit imploded.
Business Credit vs. Consumer Credit
Business credit is a “hidden gem,” even though it has been around longer than consumer credit reporting. If you’re a business owner, having business credit can help keep your business separate from your personal credit, so that you can have more privacy and safety... and avoid negative outcomes in uncertain financial times.
[11:20] “The main scores that are used are just based on how you paid in the past. That’s it! It’s just a mathematical interpretation of how you, on average, pay your bills. And I love that! How easy is credit, if we’re scored just based on: Do we pay on time? Do we pay late? Do we pay early? How late do we pay?”
Consumer credit has many factors built into the score, and can take years of diligent monitoring to get to the top. But with business credit, you can build your score in as little as one month by getting a single account that stays in good standing ...
For Infinite Banking, the ideal policy is a specially designed, high cash value, dividend-paying, whole life insurance policy with a mutual company. But some mutual companies, including Ohio National, have recently demutualized. So what is whole life insurance demutualization, and what does it mean?
https://www.youtube.com/watch?v=TS9lWhrTpGU
Today, we’re going to talk about demutualizing and how it affects Infinite Banking policies.
You’ll learn:
How a mutual company worksWhy you want a mutual company for Infinite BankingWhy life insurance companies demutualizeWhat to do if your life insurance company demutualizes
Hopefully, we’ll cover the question on your mind. So, if you’d love to see what the future holds for Infinite Banking, join us for the conversation!
Table of contentsOhio National DemutualizationWhat is Infinite Banking or Privatized Banking?What is a Mutual Life Insurance Company?How Do You Choose the Best Company?How Does Whole Life Insurance Demutualization Work?What's the Reason for Ohio National Demutualization?Book A Strategy Call
Ohio National Demutualization
On March 23rd, a very prominent insurance company, Ohio National, announced their demutualization and planned merge with a Canadian company. In anticipation of the questions, we want to debunk and provide some clarity about what it means to demutualize, and how it should or shouldn’t affect you.
What is Infinite Banking or Privatized Banking?
Conceptualized by Nelson Nash, Infinite Banking is a strategy of accessing the cash value of an insurance policy for leverage. It wasn’t a new function, however his ideas were new. And so, he wrote a book called Becoming Your Own Banker.
By leveraging the cash value of an insurance policy, and borrowing against it rather than withdrawing from it, you can make your money do two jobs. A specially designed policy, for high cash value, with a mutual company, is the preferred method for privatized banking.
What is a Mutual Life Insurance Company?
A mutual insurance company is a company in which policy owners are partial owners of the insurance company, rather than stockholders. As a partial owner, you are entitled to a portion of the company’s profits in the form of dividends. This also means that mutual companies are not beholden to investors. This allows them to operate on a much more conservative basis for long-term performance.
A stock company, on the other hand, does not pay dividends to policy owners. Instead, investors pay dividends to stock owners, who may or may not have a policy. As a result, stock companies have to make short-term, risky decisions to appease stockholders and keep stocks up.
How Do You Choose the Best Company?
In the world of life insurance, it can seem like there is an overwhelming amount of options. Do you choose mutual companies or stock companies, direct recognition companies or non-direct recognition companies, etc. How do you determine which are the best life insurance companies?
First and foremost, we want to be clear that there are two main factors you should consider before anything else—the financial strength of the company, and the customer service. The former is important because you want a company that can meet its financial obligations.
Life insurance companies commit to paying every policyholder a death benefit. So are they making risky choices with their finances, or being more conservative? Mutual companies tend to think long-term and hold more reserves than stock companies. Even within mutual companies, it’s important to look at financial strength.
Then, you want to look at customer service. How do various companies treat their policyholders? What are people saying? Because of the nature of permanent insurance, you’ll be working with a life insurance company for life. It’s important to know how their service is.
How Does Whole Life Insurance Demutualization Work?
In the case of demutualization,
Paying for college is daunting, and can be a frustrating experience if you don't know what you're doing. The government may decide that on paper, you can afford plenty... though that's rarely the case with ever-increasing education costs. If you're wondering how to find money for college, look no further.
https://www.youtube.com/watch?v=EwCdR7GK89M
Today, Seth Greene is joining us to pull back the curtain on financial aid applications, so that you can qualify for as much as possible. If you want to get a jump on college aid planning, and learn the secrets for success, tune into our conversation below!
Table of contentsFrom Broadway to College PlanningCollege Financial Aid LeveragingHow to Find Money for CollegeStudent PositioningThe Importance of Starting EarlyFilling Aid ApplicationsDates to Know for Financial Aid Your Child’s PathAbout Seth GreeneBook A Strategy Call
From Broadway to College Planning
Seth was on his way to college to become the next Broadway star when he got a frantic call from his father saying he had to come home. After some prodding, he discovered that the bill had made his father nervous. And this conversation continued each semester.
By the time he graduated, he had the epiphany that he didn’t want to move to NYC only to struggle. Instead, he decided to help upcoming students save some of the heartbreak that he went through.
As he entered this career, he realized that MOST parents and students aren’t prepared for the cost of college. They don’t realize the true expense; they don’t realize that the cost increases every year; and they rarely start soon enough. Seth’s role as a college financial aid planner isn’t to help parents save—it’s helping them work with what they have.
College Financial Aid Leveraging
4:50 “College financial aid leveraging, according to Money Magazine, is the process by which the schools determine how little financial aid they can give a family and still get them to come.”
Colleges are a business, first and foremost. If it comes down to two students, and one needs $50,000 of aid to attend a $60,000 school, and the other only needs $5,000, which student will the school want more?
5:45 “If your were an NFL team owner, negotiating with a quarterback, you would want to pay that quarterback as little as possible. But that quarterback has an agent.”
Students and families don’t have that agent advocating for them, so financial aid planners act as that negotiator for families. They help students get more government aid, so they'll need less aid from the school, as well as helping students find the best schools for their needs and desires.
How to Find Money for College
Typical strategies for affording school include using what savings you’ve accumulated, going to a cheaper school, skipping school altogether, and/or taking out loans. Of course, many of those options can set you back farther in the long run. A school with a lower tuition may not actually be cheaper, and getting stuck with loans can hold graduates back.
These strategies, while common, often don't meet the full cost requirements of college, or create more debt in the long run. The secret to paying for college isn't about "making it work," it's about finding deals and getting more aid.
Student Positioning
There are two types of aid that colleges will provide to students. The first is merit-based aid, which schools award based on athletic or academic performance. Then, there is need-based aid. Aid planners bridge the gaps between the two—while merits are often up to the student and what schools want, a financial aid planner can help parents fill out aid applications to qualify for more needs-based aid. They can help parents and students avoid common pitfalls of applications that cause students to qualify for less aid.
Needs-based aid IS quantifiable and therefore is the most important part of aid qualification.
Inflation is in the news. Should you be concerned? What should you do to make sure you’re protected?
https://www.youtube.com/watch?v=8l43QGtzmKg
In today’s conversation, we’ll talk about inflation, the consumer price index, and how to stay financially strong so you can build financial freedom. Join us below for the conversation!
Table of contentsWhat is Inflation?The Consumer Price IndexCPI Has Risen More than ExpectedWill the Fed Raise Interest Rates?Financial Freedom in the Face of InflationResources and Links:Book A Strategy Call
What is Inflation?
The most common belief about inflation is that businesses raise their prices to make more profit. However, it’s much more than that. Inflation is linked directly to the money supply. And when the money supply increases, prices tend to increase in proportion.
The feeling of inflation is that your dollars do not go as far—that prices are increasing for items, without the volume rising. It feels as though your dollars are worth less.
Investopedia defines inflation as “the decline of purchasing power of a given currency over time. ... Inflation can be contrasted with deflation, which occurs when the purchasing power of money increases and prices decline.”
If you look at the overall inflation from 1913 to now, there was an average increase of about 3% per year. While in reality some years inflated more or less, we can expect an upward trend in the future—give or take.
The Consumer Price Index
If you’re wondering how inflation is calculated, it’s calculated through something called the Consumer Price Index. Investopedia defines this as “a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.”
What’s interesting is that not all the items you may see inflate are included in this basket of goods. So just because there is a certain inflation rate doesn’t mean that you’ll experience that increase exactly with all products.
The way you may experience inflation is going to depend largely on your geographic location. There’s personal inflation, city inflation, state inflation, national inflation, and international inflation. That’s why your money might go farther (or not as far) when you travel to other countries.
You can see the CPI history for yourself on the Bureau of Labor Statistics site.
CPI Has Risen More than Expected
At the time of writing, the CPI has increased by 0.6% since March, and is up 2.6% since last year. That’s more than projected and represents the highest year-over-year gain since 2018. With inflation rates increasing, there’s considerable conversation about how that’s going to impact Americans.
Most notably, gas prices have skyrocketed. In March, gas prices increased by 9.1%, and is up 22.5% from last year. These fluctuations have had a big influence on the CPI in an indirect way. The CPI doesn’t factor in gas or energy directly because of how volatile the prices can be. And more importantly, because gas and energy prices directly impact the prices of goods like groceries, because of what it takes to produce and transport them.
Will the Fed Raise Interest Rates?
Despite inflation projections, the Fed has made a statement that they’re unlikely to hike interest rates in response—even with a strengthening economy. Instead, they will continue to commit $120 billion a month to bond purchases.
We see it this way—if the Fed raised rates now, and something stopped the growth we’re seeing, they wouldn’t have any “bullets in their gun.” It would be more difficult to drop the rates if needed, than to continue riding the low rates for the time being.
Financial Freedom in the Face of Inflation
How do you create more certainty and create time and money freedom for yourself, even in the face of inflation?
Love the idea of Infinite Banking, but want to see how it could apply to your business? Looking for a way to improve your creditworthiness, financial stability, get great cash storage, capital reserves, to maximize your profitability in your business?
https://www.youtube.com/watch?v=bAqNmDGzhyM
Today, we’re going to talk about how to boost your business's financial performance with Infinite Banking—and how to use Infinite Banking in your business.
You’ll learn:
How storing capital in an Infinite Banking policy serves your businessWhat you can do with the cash valueWho should own the policyWho can use the policyHow to best leverage this Swiss army knife of an asset in your business
So, if you’d love to see exactly how to take your business to the next level with Infinite Banking, join us for the conversation!
Table of contentsBrand New to Infinite Banking?The Art of Long Term and Short Term ThinkingInfinite Banking for BusinessA Place to Warehouse CashHow Quickly Are Premiums Available to Use?How Can You Fund a Policy for Business?Who Should Own the “Infinite Banking” Policy?Buy-Sell AgreementsInfinite Banking for Business Can Keep You ProtectedBook A Strategy Call
Brand New to Infinite Banking?
Infinite Banking is a concept originated by Nelson Nash, who realized that he could leverage his whole life insurance in his own business. This prompted him to write his immensely popular book, Becoming Your Own Banker.
Whole life insurance accumulates a cash value that earns dividends, and can multiply wealth by using policy loans to create cash-flowing investments. In fact, policy loans can be used for whatever you want (however, investments help you generate more cash flow).
The Art of Long Term and Short Term Thinking
As Nelson Nash has said, there’s an art to marrying long-term and short-term thinking together. Too often, people choose one or the other—or they mistake long-term thinking for five-year thinking. True long-term thinking spans decades, or even generations. And it takes long-term thinking to make Infinite Banking strategies work, because whole life insurance is a long-term asset. You won't get rich overnight.
However, you must also have the foresight to see the short-term actions necessary to take the leap and set yourself up to benefit from Infinite Banking. Establishing good savings habits, making wise short-term decisions, and having a good business trajectory are all essential short-term actions.
You’ll make the best short-term decisions in your business when you think about the long-term impact. The more range you have in your “vision,” the better choices you’ll make today. It’s important as you move into business that you learn how to balance these short- and long-term trajectories.
Infinite Banking for Business
A Place to Warehouse Cash
Where are you going to store your capital? This is a question that any good business ought to ask—because if you’re making a profit, it has to go somewhere. And ideally, you also want that money to be earning while it’s in storage. While bank accounts and money markets offer a place to store money, they earn next to nothing. Whole life insurance, on the other hand, offers an alternative that far outpaces those accounts.
In addition, whole life insurance offers growth without risk. It’s non-correlated to the stock market and therefore is not subject to the same whims of the market.
You can use your cash value in times where profits are lean, or to make big-ticket purchases that will help expand your business. Your cash value can also help you secure financing for projects that the bank might find risky, yet may help you increase revenue. It can also protect your privacy from both creditors and the IRS.
How Quickly Are Premiums Available to Use?
When you pay your first premium, your cash value is available for a policy loan within 30 days. The amount of your premium, however, can differ.
In part 1, we started discussing the top questions about Infinite Banking that we hear all the time. This week, we’re finishing up the conversation, so that you can make a decision about Infinite Banking with confidence.
https://www.youtube.com/watch?v=xNKGjD5eEIg
Hopefully, we’ll cover the question on your mind. (And if we don’t, check out Part 1 of this conversation to see if we’ve covered it there.)
So, if you want to clear up your doubts, find out exactly what to do about your concerns, and know what to do next, join us for the conversation!
Table of contentsStrategy vs. ProductYour Top Questions About Infinite Banking, Answered1. How do I compare illustrations effectively?2. Can’t I get better growth with an IUL?3. Can I use my home equity instead of life insurance?4. Do I make enough money to have or benefit from insurance?5. Is it the right time if I’m in a big personal or business transition?6. Am I too old for life insurance?7. What if I’m not in perfect health?8. I have stores of cash now, what if I don’t want to commit to ongoing funding?9. What happens if I become unable to pay my premiums?10. How can I trust this if no one I know is doing Infinite Banking?Book A Strategy Call
Strategy vs. Product
Before we begin our conversation, it’s important to note the difference between Infinite Banking as a concept, and whole life insurance as a product. As a product, insurance offers many benefits that we advocate for--growth, liquidity, asset protection, and more.
On the other hand, Infinite Banking refers to how you use your products. Insurance, on its own, isn’t “magic.” However, the way you design your policy, combined with the strategies you use to leverage that cash value, is what makes up Infinite Banking.
Now that you have that framework, let’s get into round two of your top questions about infinite banking.
Your Top Questions About Infinite Banking, Answered
- How do I compare illustrations effectively?
When comparing illustrations between companies, it’s important to note that illustrations are projections, and are non-guaranteed. Although illustrations often have a guaranteed portion, you can expect dividends to be paid. Once dividends are paid, your entire projected illustration will change, as will projected dividends.
You can use illustrations as a good guideline, although so much will change from year to year, and the difference between companies will not be much different in the long run. If you’re trying to choose between a direct or non-direct recognition company, for example, the long-term differences are not that significant.
The most important decision you can make is the decision to get a policy today, for the best results possible. Differences between premiums and face amounts will be more significant in your decision-making process than which company you go with.
- Can’t I get better growth with an IUL?
You could, potentially, get better growth in an IUL. However, IUL illustrations often leave a lot unsaid. For starters, there’s an increasing term insurance cost within the policy (rather than a level cost) that your growth will have to outpace. On another hand, IULs have fewer guarantees and more risk involved. People often misunderstand the language used in IUL contracts as well--people are told that they cannot lose money, so they buy policies with a false sense of security. And while you cannot lose money from the stock market component, you can lose cash value from the increased cost of your insurance, which correlates to the market performance. Everything in insurance has a trade-off, including the “market-returns” of an IUL.
Ultimately, it’s up to you to decide the purpose of your money, as we mentioned in Part 1. With an IUL, you take on the risk. With whole life, the company assumes the risk. If you are seeking to save and grow money, whole life insurance is likely the better vehicle.
3.
Are you looking for a formula to grow your business? Cesar Quintero, Certified EOS Implementer and visionary of The Profit Recipe is here to help!
So, if want to figure out how to tap into your purpose, get traction, and solidify a healthy team… tune in below!
Table of contentsUnique AbilitiesThe Power of VulnerabilityThe E-volution FlywheelThe Ikigai ConceptEOS and The Profit RecipeContact Cesar QuinteroAbout Cesar QuinteroBook A Strategy Call
Is there a formula for business growth? As it turns out, there just might be, and Cesar Quintero holds a key to entrepreneurial success. Now, he's sharing his lessons about entrepreneurship with us. We're sharing the highlights of our conversation below.
Unique Abilities
Dan Sullivan of Strategic Coach teaches about unique abilities--the skills that we all inherently possess and are uniquely positioned to do. When we work from these abilities, we have more energy and create more value than when we do things we are not uniquely designed to do. And this idea is the foundation of Cesar's work with entrepreneurs.
[8:15] “Everybody says that entrepreneurs can change the world, and businesses can change the world—and I’m a true capitalist. I really feel that if we can generate value we can change the world... I truly believe that only happens if the entrepreneur... really leverages their unique ability.”
When you take care of your team, and have them working in their unique abilities, they can take care of clients and create more value. So focus on creating a team that thrives first—so your customers thrive naturally as a result.
The Power of Vulnerability
Building a team of entrepreneurs who are working in their unique abilities takes vulnerability. It’s not always easy, but it fosters trust and growth. Opening up your numbers to your team, for example, takes massive vulnerability. However, the amazing result is that people take ownership of those numbers—they’re contributing, and that’s empowering.
[12:39] “I started my business at 24, and most people around me were older than me. Every room I went to... I was always the youngest guy there. I had to prove something to people, I think, in my mind I always had to prove that I knew, and I was right. And I think letting down my ego helped me become a better leader and a better businessman.”
The E-volution Flywheel
Cesar shares one concept behind his upcoming book, and the foundation of his business, the E-volution Flywheel.
[15:39] “After hundreds of different entrepreneurs that I helped, I saw a pattern... There’s five stages. The important thing with this cycle, is that true entrepreneurs and true leaders and people, we don’t go through this on a sequential aspect.”
The stages of Cesar’s model are:
Startup—You’re seeing opportunities in the marketplace.Leader by Design—Understanding what you can and cannot do.Team by Design—Delegating what you cannot or will not do to internal and external teams.Biz by Design—Create systems for your business to work without you, so you can continue to scale and create value. Life by Design--Living life on your own terms.
While these stages can be happening at once, Cesar has found that moving sequentially helps you get unstuck. So if you’re stuck designing your team, you need to look at the next stage of the cycle—Biz by Design—to get some clarity and get unstuck, and on and on. So rather than a linear cycle, the E-volution Flywheel deals with the stages on a random and cyclical basis.
The Ikigai Concept
In this Venn Diagram of sorts, Cesar shares with us the components of the Ikigai Concept. The heart symbolizes purpose. The star is for things you’re great at. The bottom represents things that make you money. Finally, the globe represents things that benefit the entire world. The intersections of these traits are what society often says should be your hobbies, profession, vocation and mission.
[27:15] “The Ikigai concept is,
Are you considering Infinite Banking, but you aren’t sure yet if it’s a good fit for you, and you’d rather figure it out before investing time into a personal conversation with an advisor? Look, your concerns are absolutely valid! But let’s let those questions propel you to action, not indecision. Today, we're answering the top questions about Infinite Banking that we have heard.
https://www.youtube.com/watch?v=qVZbt1tog3w
Hopefully, we’ll cover the question on your mind.
So, if you’d love to clear up your doubts, find out exactly what to do about your concerns, and know what to do next, join us for the conversation below!
Table of contentsWhat is Infinite Banking?Your Top Questions About Infinite Banking, Answered1. What if I don’t like whole life insurance?2. What if I don’t need insurance?3. Can’t I get better returns in the stock market?4. Will I lose access to some of my cash at the beginning?5. I already have a policy; is it a good one?6. I’ve heard many people talk about the "ideal" policy design—how do I know if I have that?7. Am I overpaying for insurance?The Reason for Infinite BankingBook A Strategy Call
What is Infinite Banking?
Infinite Banking is a strategy of using a financial product in a way that accelerates growth. We use specially designed, high cash value life insurance with mutual companies that pays dividends. These policies grow with guaranteed interest, and non-guaranteed dividends (although dividends are highly anticipated and have a good track record of being paid).
This means that you have access to cash that is growing, liquid, and will not drop in value. Infinite banking is often misunderstood, yet it’s a strategy that has been used for centuries by our country’s wealthiest people as a means to build and protect wealth.
If you have questions about Infinite Banking, we highly recommend checking out this post to get some of your top questions about infinite banking answered.
Your Top Questions About Infinite Banking, Answered
- What if I don’t like whole life insurance?
When this comes up in conversation, we often come back with the question, “Compared to what?” In reality, life insurance is hard to compare to other assets because it is fundamentally different from many assets. Rather than getting hung up on the product itself, we encourage you to take a different route.
When we meet with people, one of the first things we ask them to consider is the purpose of their money. If you’re looking for growth, availability, investment capital, etc—those are purposes.
When you can define what you want to do with your money, then you can determine the best products to use. Despite what you’ve been told, insurance may be the ideal asset for the goals you want to accomplish. It may not. However, you cannot judge it simply based on whether you like it—you have to see it as a means to an end.
- What if I don’t need insurance?
We hear this question often, for many reasons. Some people view insurance as something to protect their children. Others view insurance as unnecessary because they have enough money to “self-insure.”
We think the better question to ask is, “Do you want everything that comes with insurance?” Insurance companies will never sell you more insurance than you “need,” so we prefer to look at the benefits. Beyond the living benefits, insurance protects your estate and can help ease unexpected costs (including loss of income). Insurance helps your money go further and your assets last longer.
- Can’t I get better returns in the stock market?
Let’s start with this: life insurance is not an investment. When we compare insurance to investments, we’re setting it up for failure. We prefer to look at cash value insurance as an alternative to savings accounts. Investments have risk involved, and therefore the potential for different returns. Savings, on the other hand, provide certainty and liquidity.
How are your New Year’s resolutions going? We’re almost three months into 2021, and it’s a great time to take an inventory of how you’re doing. This one simple morning routine I learned from Dan Sullivan has had a greater impact on my year than anything else.
https://www.youtube.com/watch?v=EahEyM9wj-Q
Today, we’ll talk about that one little idea that has the power to change everything for you.
So, if you want to find out how to master your emotions, step into confidence, and get more done… tune in below!
Table of contentsA Daily Morning Routine1. What’s my biggest danger for today?2. What is my biggest opportunity for today?3. What strengths do I have that I can reinforce today?Setting Your Foundation with a Morning RoutineBook A Strategy Call
Dan Sullivan of Strategic Coach is an inspiration to entrepreneurs everywhere, which is why I always appreciate his words of wisdom. Dan calls himself a simplifier—he takes processes and makes them even simpler. When his email came across my inbox, I knew I had to share it with you.
A Daily Morning Routine
If you’re looking to be even more successful, and find even more inspiration in your day, creating good habits is a great place to start. That’s why Dan Sullivan proposes his specific morning routine—one that has been a game-changer for him personally.
Having morning routines and habits can keep you grounded in an otherwise uncertain world, and it can also keep you on track with your goals. It starts with questions, which help to keep you focused on your goals. Here are the three things you should ask yourself to stay on a trajectory for success:
- What’s my biggest danger for today?
Or, "What am I afraid of?" At the heart of this question is structure. What you’re really doing is assessing your fears. What are you afraid of not doing, and how will that impact your success?
Asking this question as a part of your morning routine sets you up to take action in the face of fear. And it keeps your fear from growing, like when you put off a project and it snowballs, progressively becomes more overwhelming.
This question, consequently, can also help you filter out tasks that aren’t meant for you. If you’re dreading a task, and you’re dreading the consequences of not doing it, it’s likely a task you should delegate. You’re still taking action by delegating, and it gives you more freedom to do what you want to do.
- What is my biggest opportunity for today?
This is your chance to examine what you’re looking forward to in your day. If you follow these opportunities that you’re excited about, and take action, you can put yourself further ahead.
In the first question, we addressed the importance of handling fear and delegating tasks. Following what energizes you is another great way to identify how you should fill your day, and what tasks you should delegate.
Good tasks, activities, or opportunities are ones that will leave you feeling as energized as when you started (if not more energized).
- What strengths do I have that I can reinforce today?
The third question in this morning routine is about building confidence. It’s about taking action so that you can practice your strengths, hone them, and come out on the other side more confident and capable.
There’s no better way to celebrate your strengths than by using them! If you continually work on your strengths, you allow them to develop and blossom. If you don’t use them, they atrophy.
You likely know that it feels great to use your strengths, so don’t be afraid to use them often. This will help you feel more confident and step into your full potential. It also helps you be as energized as possible.
Setting Your Foundation with a Morning Routine
The world is so overwhelming right now, and if you're an entrepreneur, your mind is probably being pulled in a million directions. This exercise helps you simplify and focus on what you can do, today.
Do you want to be more profitable, and enjoy the success of a thriving business, instead of running ragged on the hamster wheel of chasing the next sale? Barbara Stackhouse is writing Profit First for Dentists.
https://www.youtube.com/watch?v=EzsWDyjLA2Q
Sound familiar? It’s the specific application of Mike Michalowicz’s Profit First system, tailored to the dental industry, with their unique challenges and solutions.
So, if you’re a dentist who would like to build a successful practice, or a chiropractor or physician, or even a business owner in another industry who wants to find out the secret code to profitable and sustainable business… tune in below!
Table of contentsMike Michalowicz’s Profit First SystemLeave the Grind BehindThe Sales ProcessProfitability in Any BusinessSolving Business ProblemsFixed vs. Variable ExpensesPut Systems in PlaceWhy “Profit First”? Links MentionedAbout Barbara StackhouseBook A Strategy Call
Regardless of your experience in the dental field, we think that Barb has amazing lessons to teach business owners. Her experience in Profit First systems make her an expert at organizing systems that help you keep more of your revenue.
Mike Michalowicz’s Profit First System
After discovering Mike’s Profit First system, Barb could instantly see how the Profit First system fit into the dentistry field, despite being a system geared towards CPAs. She contacted Michalowicz to see if she could go through his professional training process, despite being in a completely different industry. Now, not only is Barb a certified Profit First professional, but she is releasing a book for dentists to implement this process.
Leave the Grind Behind
[7:50} “If you’re an entrepreneur, you get stuck in the grinding it out. You're the technician in the business, you’re the person doing it all. And it doesn’t have to be that way.”
Too often, entrepreneurs enter the business thinking that they HAVE to be un-profitable for a while. They grind and work hard, and hope that in five years, their business will be where they want it so they can slow down a bit. To Barb, this couldn't be further from what should happen.
Instead, entreprneuers need to work smarter and build out their own profit, so that they can be prosperous now, enjoy their practice, and set it up for decades of success.
The Sales Process
[8:11] “So the main other thing that I talk about—which is another big area that dentists struggle with, and even team members sometimes need training with too—is kind of the sales process in dentistry. And it’s actually the same sales process that I use myself when I talk with a client. It’s all about serving that client. And really putting the need for the sale over on the shelf and just connecting. Having that relationship first and not pushing.”
Through her work, Barabara created a system to facilitate this sales process, called P SERVE. The P stands for purpose, and Barbara urges dentists or team members to understand their purpose before taking a call, and then truly giving service from the heart. SERVE, as an acronym, describes the steps in the process.
This methodology is something that Barb speaks on and teaches—to help dentists serve their clients first, knowing that the profit follows. Money flows by creating value—so serving and giving allows any business to flourish. This is very similar to Bob Burg's Go Giver mentality.
[10:34] “The more you help people get what they want, the more you will get what you want.”
Profitability in Any Business
[10:53] “If you are an entrepreneur, and you open a business, you have a dream of being your own boss, probably. You want to call the shots. These are the common themes that I find. But you have to make a living at it. If you’re not profitable, then you have a hobby, you don’t really have a business. So I think that profitability has to be baked into the plan, if you will.
Have you heard Dave Ramsey’s opinion of Infinite Banking and Whole Life Insurance? He says it’s a scam, a joke, hogwash, horrendous, a pile of manure, old school life insurance done poorly, a jumbled word picture, you can’t cut through the BS, screwing people, and just doesn’t feel right.
https://www.youtube.com/watch?v=Jnbs0iANdMU
Today, we’ll separate opinion from fact, so you can decide based on knowledge and understanding.
So if you want to find out why the wealthy and independent thinkers have been using the profound guarantees and wealth-building strategy of Infinite Banking for centuries … tune in below!
Table of contentsAre Insurance Agents Financial Advisors?How Do Mutual Companies Work?What is a Dividend, and How is it Non-Taxed?Are You Paying for Your Own Money?What Happens When You Die?Is Whole Life Insurance Expensive? Summing Up What Dave Ramsey Says About Infinite BankingBook A Strategy Call
Dave Ramsey does a lot of good for a lot of people—he helps them to get out from under crippling debt and create better money habits. However, he has famously spoken against Infinite Banking, or what we often refer to as Privatized Banking.
Are Insurance Agents Financial Advisors?
When met with a question about whole life insurance, Dave Ramsey was not thrilled about the idea, to say the least. However, his first criticism was that the advisor who recommended insurance was only an insurance agent and not a financial advisor or planner. However, most insurance agents often have other certifications—like CFP (certified financial planner) or a Series 65 (for giving financial advice).
Just because someone is able to sell insurance does not mean they can’t sell investments or give advice. Insurance is simply one certification.
How Do Mutual Companies Work?
Mutual life insurance companies are what infinite banking works with. Dave correctly identifies the difference between mutual companies and stock companies. Policy owners own mutual companies, while stockholders own stock companies. This means that mutual companies pay profits to the policy owners, while stock companies pay profits to stockholders. This is where his accuracy stops.
According to Dave Ramsey: “If you are the owner of the company and you’re also a customer of the company, and the only place the company gets money is from the customers that are owners, and they give you money from profit, by definition, that means it’s because they took too much from you as a customer. There wouldn’t have been a profit otherwise.”
This, however, is not true. The life insurance companies make profits outside of premiums paid into life insurance policies. Companies also make money from their conservative investments--many of which are corporate and treasury bonds, as well as derivatives, mortgage backed investments, and some equities.
Policy owners receive dividends based on these profits after policy expenses. It’s not accurate to say that premiums are the only profits. His understanding of mutual companies is not accurate.
What is a Dividend, and How is it Non-Taxed?
Dave Ramsey says, "So the IRS has deemed, consequently, that mutual life insurance company dividends are not dividends, in the true sense of a dividend, that they are instead, and this is the IRS’s language 'the refund of a deliberate overcharge.' So they overcharge you in order to give you some money later and make you feel like you’re making money off of them. And it's absolute hogwash. It’s a pass-through. Mathematically, it’s a pass-through. It’s the way it has to be, it’s the legal definition the freaking company, and the IRS says so."
The reasons the government considers dividends non-taxable because they are considered a refund of overcharged premium, but it’s important to realize that not all the dividend is an overcharge. And the government decides not to create a taxable event because they want to incentivize people to have insurance.
Do you want to make more money this year? Today, we’re talking with Rabbi Daniel Lapin, author of Thou Shall Prosper — Ten Commandments for Making Money, one of the deepest and most profoundly philosophical books about the wisdom you need to be successful.
https://www.youtube.com/watch?v=wTujheo9dAk
So if you want to learn about the steps that make success possible and make more far more money than you’re making right now… tune in now!
Table of contentsThe 10 Commandments (of Making Money)Business is Not Piracy Biblical Wisdom as a FoundationThou Shall Prosper (and Be Happy)Charging InterestThe Most Important Thing To Starting a BusinessSpiritual CharacteristicsRabbi Daniel LapinBook A Strategy Call
We’re excited to bring you a unique guest who may surprise you. Rabbi Daniel Lapin is more than just a man of faith, he’s also an accomplished speaker, scholar, and author of a book on our favorite topic—Prosperity.
The 10 Commandments (of Making Money)
While most financial books focus on returns and strategies and products, Thou Shall Prosper is a deeply profound look at the philosophical underpinnings of success and wealth. The book sprung into being after a series of lectures Rabbi Daniel Lapin gave on socio-political topics, when his most frequently asked question was, “How come Jews are so good with money?”
It was a question many were sheepish to ask, yet it gave the Rabbi cause to study the question. Especially when he realized he did not have the answer readily at hand. And so he pursued the history of the financial success of many Jews, and in the process debunked many of the bogus explanations.
He boiled his research down to one truth:
[7:43] “It is that the vast catalogue of ancient Jewish wisdom embedded in the Hebrew scriptures, that have been part and parcel of Jewish culture. Whether it’s a man, dedicated sages who study the word diligently, or whether it’s among secularized Jews whose conversation around the dinnertable revolves around the way they raise their families and inculcate their children. All reflect these intrinsic values and so, in a nutshell, that’s what it was. And I worked as hard as I worked in my life to condense all of that into ten fundamental principles.”
Business is Not Piracy
In his research, Rabbi Daniel Lapin learned many Jews became pirates in the 17th century. They pillaged and plundered and built a trove of treasure. Then when they were ready to retire from piracy, they funded churches or other projects to reenter society peacefully. It's dangerous to compare modern day business to the same model. The wealthy should not have to buy their way back into polite society.
Today, people compare businesses to this same model, despite being very different from piracy. Businesses are lauded for their donations, yet criticized for their income. Giving to charity should be a moral act, and it cannot "right" something that is not inherently wrong, like making money.
[13:02] "If giving charity is giving back to society, then what the hell were you doing to society when you were making money in the first place?"
No one complains athletes make too much. Yet people complain about CEOs—they do specialized work and are the linchpin of many major decisions.
Biblical Wisdom as a Foundation
Our world as we know it is based on principles and ideas found in the Bible.
[23:50] “So ancient Jewish Wisdom explains that—that is the way that it teaches and explains that—you’re not allowed to exploit a lack of information in a business transaction that isn’t transparent. And so, I’m actually prohibited from offering you a price for your property without disclosing to you that I’m aware that there is a plan development or infrastructure that is going to be built there that is going to increase the value of your property—I am not allowed to make you an offer for it without disclosing that information.”
In the same way,
Right now, you have a fantastic opportunity to use whole life insurance as a place to store cash, build capital reserves, get better than bank rates on savings, AND the ability to earn never-ending compound interest, even WHILE you’re using the same money for something else. And you don’t have to qualify to access your capital. You can thank the 7702 Plan for that.
https://www.youtube.com/watch?v=7lMnZARrqys
But is this long-time financial bunker of the wealthy about to become an obsolete vintage classic?
The recent spending bill Trump signed into law went into effect on January 1, 2021. As a result, we'll be seeing some critical changes to the IRS code that has made Privatized Banking such a powerful opportunity.
There’s still much to be determined, but today, we’re looking at tax code changes and how they affect you.
So if you want to find out what these changes mean for your ability to get the profound guarantees and wealth-building strategy of Privatized Banking… tune in below!
Table of contentsWhat is the 7702 Rule?What is a MEC?What's Changing with 7702 Plans?MEC QualificationsChanges in GuaranteesThe Impact of the 7702 Plan Changes7702 Plan Changes and MECSDid the 7702 Plan Change Destroy Privatized Banking?Book A Strategy Call
What is the 7702 Rule?
In short, this is the part of the tax code that enables Privatized Banking strategies with life insurance. The way life insurance has been defined in the past, according to the Federal Government, offers many tax advantages.
Tax-deferred growth, which can sometimes be experienced tax-free if used properly,Tax-free policy loans,And an income-tax free death benefit.
Because of these tax advantages, there is a provision that prevents whole life insurance from being abused. If too much premium is funneled in too quickly through Paid-Up Additions, a policy can become a modified endowment contract (MEC).
What is a MEC?
Up until the 80s, people were abusing the benefits of life insurance by purchasing a small face value, funneling in extra premium, and calling it life insurance. Then, they were reaping all the tax benefits.
In 1984, the government put a stop to that by placing limits on over-funded policies. While still possible to do, once a policy becomes a MEC, it no longer carries the same tax advantages.
The trick to Privatized Banking is to design policies with as much premium as possible, without a policy becoming a MEC. That way, you can get as much cash value as possible, while still reaping the benefits of tax advantages.
What's Changing with 7702 Plans?
The bill, signed in December, went into effect in January. The 5,593 page document has taken time to wade through, but here's what we now know. Regulations for what constituted a MEC are changing.
MEC Qualifications
Prior to this bill, a life insurance policy had to pass something called a 7-pay test to qualify. The test determines how quickly a policy could be considered "paid-up," or fully funded. If your policy was paid-up within the first seven years of the policy, it would fail the test and become a MEC.
Now, the MEC test will be based on a floating rate relative to the Prime rate.
Changes in Guarantees
One of the greatest strengths of a life insurance policy is certainty: there are guarantees built into the policy that keep your money secure—and growing. Previously, the minimum guaranteed interest rate on policy growth was 4%, however the government lowered that rate to 2%. However, it's important to note that insurance companies have been successfully navigating a low-interest rate environment for a long time. And just because the floor has lowered does not mean rates can't be higher.
The Impact of the 7702 Plan Changes
While these changes will affect policies going forward, it's important to note that any policies currently in-force will not change. Life insurance is contractual, and companies are required to uphold current c...
If you want to achieve the impossible, connect with the most powerful people in the world, achieve the next level in your business, strengthen your relationships, lead your community, and make an impact… listen in, because we're talking with Steve Sims.
https://www.youtube.com/watch?v=oHXpuecDrjM
Quoted as “The Real Life Wizard of Oz" by Forbes and Entrepreneur Magazine, Steve Sims is the best-selling Author of BLUEFISHING—The Art of Making Things Happen, a sought-after coach, and a speaker at a variety of networks, groups and associations, as well as the Pentagon and Harvard—twice!
So if you want to transform your life, attract influencers and high net worth clients… tune in below!
Table of contentsSteve SimsThe Number One Mindset Tip“You Are the Room You’re In”How to GrowEntering with a SolutionSteve Sims' Millionaire PartiesA Note to EntrepreneursLinks MentionedBook A Strategy Call
Steve Sims
Steve Sims is a master at helping people achieve the impossible with the most powerful people in the world. Or, if you ask him, he’d say he’s good at achieving the stupid, or the unexplained. That’s because, as Steve shares, once you label something as impossible, you’ve created a mental barrier for yourself. So if one thing is clear, Steve knows how to transcend the unthinkable, and impact the world.
Steve has had many paths in life, all of which hae led him to where he is now. For the last 25 years, he's been in what is technically the concierge and spa business. In his own words:
[2:27] “One of the famous stories everyone knows was I had a client who wanted to have a meal in Italy, and he wanted it to be unforgettable. And so I closed down the Academia, the Galleria in Florence, that houses Michel Angelo’s David. Set up a table of six at the feet of David. And halfway through the pasta I had Andrea Bocelli come in and serenade them. And so I’m basically the Make-A-Wish foundation for people with really, really, really big checkbooks.”
Now, Steve acts as a mindset coach to help people get the clients that they deserve and want, rather than the clients they get.
The Number One Mindset Tip
When asked what his number one mindset tip is, Steve answered to not identify the problem. Which at first may seem completely counterintuitive. That is because in his experience, people spend the bulk of their energy telling you why they can’t do something. Either they don’t have the money, or the time, or the resources.
The trick is to shift to how you can do something. The answer may be to set aside thirty minutes a day to reach your goal, or write grants to fund your project, or build more cash flow with a side hustle. Maybe, the solutions are far more creative than that, as Steve Sims shares with us in the interview. There’s an infinite number of solutions for an infinite amount of ideas—it just takes work and a vision.
As Steve says:
[5:02] “Have you ever noticed that when you get into a room full of entrepreneurs, you’re at home?”
That’s because the entrepreneurial mindset is energizing—it’s about innovation, creativity, and finding solutions. It’s the exact opposite of the—"Here’s why I can’t”—mindset.
“You Are the Room You’re In”
You’ve likely heard the statement before—you’re a combination of the five people you spend the most time with. One of Steve Sims' strategies, regardless of his position, has been to surround himself with wealthy people. This could be people of intellectual wealth or monetary wealth. This strategy has allowed him to grow, and to be the person with all the solutions, instantly making him one of the most valuable assets in a room of wealthy people.
How to Grow
[10:38] “Sometimes the greatest growth comes from the most devastating problems and mistakes and issues."
Later in our conversation, Steve shares a personal story of how he was flown to China for work, then fired. What seemed like a dark situation turned out to be a phenomenal opportu...
Americans are saving more money than ever, yet interest rates are at an all-time low. If you're looking for the best place to save money, it might be time to stop saving with banks.
https://www.youtube.com/watch?v=dl02XkqwwDg
A recent CNBC article states: "In the midst of the coronavirus crisis, many Americans are spending less and saving more. At the same time, banks are paying next to nothing on those deposits."
Are you, too, looking to stash cash, but want to make sure you’re doing the most with your money? Today, we’re talking about this unspoken challenge from a fresh lens.
So if you want to learn about one of the best places to save money, so you don’t have to give up returns or resort to high risk in search of them… tune in below!
Table of contentsWhy More People are SavingInterest Rates and the Federal Reserve Decline of Customer ServiceBank Accounts and LendingWhere Is It Best to Save Money?Whole Life Insurance: Emergency Fund and Alternative High Yield Savings AccountWhy Isn’t it Mainstream?Book A Strategy Call
Why More People are Saving
Americans are saving more money than ever, yet savings rates in the banks are at an all-time low. So how does a scenario like this happen?
We think primarily, COVID-19 has been an eye-opener for the world. On one hand, workers who were affected by job closures have likely realised that they didn't have enough money saved to fall back on. While a tough lesson to learn, the fact that Americans have been successfully saving more money gives us hope. After all, having money saved is what enables you to weather economic storms (and seize opportunities when things are going well).
On the other hand, business closures meant a lack of things to do. Movie theaters and aquariums closed, museums closed, and restaurants and shops closed. Pretty much all indoor, and many outdoor, businesses had to shut down for a good portion of the year. This also means that many families turned to other alternatives for entertainment, in other words: free. Hiking, swimming, and being outdoors became more popular. Americans started saving more money by default, because so many businesses put a halt on operations.
So not only are people choosing to create better savings habits, they're also creating better spending habits. Now that you have the money, it's time to ask—where is the best place to put your money?
Interest Rates and the Federal Reserve
A tumultuous economy means changing interest rates. The Federal Reserve controls interest rates, and in order to boost the economy, they've lowered rates dramatically—almost to zero. Meanwhile, they've also pumped trillions of dollars into the banks. Now, banks are at a surplus—meaning that overnight lending between banks is down, as are savings rates.
In the past, banks and would use high-interest rates and "prizes" to incentivize opening accounts at their establishment. Now, with a surplus, there's no need for banks to offer this incentive. High savings rates are the banks way of broadcasting that they want your money, and they're willing to offer something in return. Now, banks can lower these incentives almost to zero, because they aren't relying on that money to come in.
We're seeing a mis-match in supply and demand. While there's a high demand for a safe place to store liquid cash, where it will also grow, there's relatively low demand from banks for new accounts.
Decline of Customer Service
A decline in customer service is one of the unfortunate consequences of this low interest rate market. Because banks do not need new accounts, they are not incentivising new customers; this also means that there is no incentive for them to provide better customer service. Combine that with a high demand for saving and a pandemic, and the issue worsens. Lobbies are closed, drive-through lanes are cramped, and phone service is difficult.
Bank Accounts and Lending
Under normal circumstances,
There is a major problem in the world today: it’s not people disagreeing with one another… it’s that they cannot disagree agreeably, civilly, and most importantly, persuasively! Here, at the end of a turned upside-down year, the gift we need most is a solution. That's where The Go-Giver Influencer comes in.
https://www.youtube.com/watch?v=wtLxPvRHxZ4
In this interview, we’re talking with Bob Burg, co-author of The Go-Giver Influencer.
So if you want a way to find common ground where there appears to be only irreconcilable conflict, and get the secret to achieving your goals, this is the answer you’re looking for… tune in below!
Table of contentsWho “The Go-Giver: Influencer” is ForWhat is Influence?Healing Political RiftsThe 5 Secrets of Genuine Influence1. Master Your Emotions2. Step Into the Other Person's Shoes3. Set the Proper Frame4. Communicate with Tact and Empathy5. Let Go of Having to Be RightAbout Bob Burg
Who “The Go-Giver: Influencer” is For
Bob Burg, along with his co-writer John Mann, has now written four books about the “Go-Giver” parable. The first story is about the seemingly counterintuitive steps to success that can make a vast difference in your life. The Go-Giver Influencer is the second book which tells yet another parable of success, and important lessons about relationships.
[5:09] “John and I… really wanted to take [the concept of] influence to a deeper level because of its importance. Now, in both of the other parables… influence was certainly a part of it. It was even law number three—the law of influence in The Go-Giver. So we have to really look at, ‘What is influence, and why is it important?’”
The answer is people skills. Talent can only take you so far in business and in life. And of course, hard work keeps your talent honed. Yet without people skills, you’ll have a hard time making actual progress toward your goals. Everything we do in life is filtered through the relationships we have with other people. That is where The Go-Giver Influencer comes into play.
What is Influence?
[8:18] “I think that’s the essence of influence, it’s pull. Pull as opposed to push, right? As in, how far can you push a rope? And the answer is not very fast or effectively. Influencers don’t push… their will on others. They don’t try to push their ideas on others.”
You can’t push your way to what you want—it won’t end well for anyone, nor is it sustainable. Influence is the art of pulling, or better yet attracting, people. In fact, the best influencers do this genuinely, because they understand that there’s power behind being inviting.
[10:20] “[Genuine influencers] will ask themselves questions. How does what I’m asking this person to do… align with their goals? With their needs, with their wants, their desires?... How am I helping them overcome a challenge...Now, when we ask ourselves these questions thoughtfully, intelligently, genuinely, authentically—again, not as a way to manipulate another human being to our will, but as a way of building [inaudible]---[we earn] that person’s commitment, as opposed to trying to depend on some type of compliance.”
Healing Political Rifts
2020 has been a tough, sometimes contentious year, and the rift between political affiliations has only grown. We’ve been most concerned by the conversations across political divides, which have put a strain on relationships of all types. And we’re even seeing a shift in the conversation. Between parties, we used to see, “I’m right, you’re wrong” discussions. Though not the healthiest outlook, there was still discussion. Now, the conversation is, “I’m right, you’re evil.”
[18:44] “This is a totally different frame, and one which makes it nearly impossible to engage. Because you’re not going to engage with evil. Evil is incorrigible. There’s nothing you can do with evil. So because of that, what people have done on both sides is hunker down, listening only to the information that supports...
If you’re planning to leave an inheritance to your children, there’s a new rule in the Secure Act that will probably cause your kids to pay more taxes if you pass on your retirement plan.
https://www.youtube.com/watch?v=3yQ22dT2H6I
Today, we’re discussing how the Secure Act, passed in 2019, affects your retirement plans and may front-load taxes to kids who inherit these plans.
If you want to know what the Secure Act is, how it applies to you, and what you can do about it… tune in below!
Table of contentsThe Key Takeaways of the Secure ActContributionsPart-time Workers Get 401(k) OptionsTax BreaksParental AidThe Secure Act and IRAsHow the Secure Act Impacts InheritanceMaximize Your InheritanceBook A Strategy Call
If you have an IRA, the following changes to the tax laws are important for you to know. These changes can affect how your inheritance is distributed from an IRA, making it prudent to reassess your financial strategy. We want to help you continue to maximize your retirement and still leave an inheritance, should you choose. Staying on top of the changes and making some smart pivots can save you and your family on heavy tax penalties down the road.
We have designed this article as an overview of the changes so that you can meet with your CPA and financial advisors with confidence. It’s always crucial to be informed, yet work with a professional on the specifics.
The Key Takeaways of the Secure Act
Before we can dive too deep into the impact of these changes, and what you can do differently, it’s important to look at what those changes are.
Contributions
Previously, you could make contributions to your traditional IRA until age 70 ½. Now, you can make those contributions indefinitely. This also means that you don’t have to take your required minimum distributions (RMDs) until age 72. The implications could be an increase in taxes, for two reasons:
Your account has more time to grow. While growth is good, this also raises your tax liability.That two-year window (or more) gives room for tax brackets to change, and it’s more likely that taxes will increase than decrease. So if you’re taking a higher distribution, and the taxes increase, the tax hit could feel even greater.
Part-time Workers Get 401(k) Options
In the past, part-time workers were not eligible for 401(k) plans. Now, the Secure Act has created a provision for long-term part-timers to make contributions to a 401(k). This broadens the scope of who is eligible for government-sponsored retirement plans, which could entice more people to participate.
Those who are eligible? Anyone who works 1,000 hours in a year, or who has worked 500 hours a year for three consecutive years.
Tax Breaks
The Secure Act also rolled in some tax breaks, many specifically for businesses. One of the bigger breaks is for businesses who set up automatic enrollments for employees. This means that rather than opting into a 401(k) plan, employees may have to opt-out.
Parental Aid
Along with other changes, a provision was added that will allow parents to withdraw $5,000 without penalties, to help cover birth and adoption fees. This can help offset some of the typical costs of new parenthood.
This is significant, because in the past any withdrawals from a qualified plan before a certain age would incur a penalty. Similarly, parents will now be able to withdraw up to $10,000 annually without penalty from a 529 plan to repay student loans.
The Secure Act and IRAs
One of the reasons provided for the change in required minimum distributions, is that people are living longer. Often, people are working longer, too. On one hand, this allows the money more time to grow, and helps it go farther in retirement. On the other hand, it also raises questions about the tax implications in the long-run.
We think one of the most prudent questions to ask yourself is: “If I’m not paying this tax on my income today,
Curious about how investing in raw land could help you accomplish your financial goals? In this episode, we’re talking with Mark Podolsky, The Land Geek, the raw land investor who’s completed over 5500 land deals, with an average ROI of over 300% on cash flips, and over 1,000% on the deals he sells with financing terms.
https://www.youtube.com/watch?v=AMB7SWZLyn8
So if you want to learn from a raw land investor who’s replaced his income and helped many other people do the same … tune in below!
Table of contentsHow Do You Invest in Raw Land?Doing Your Due Diligence with Raw LandWhat Happens Next?How to Make Your Offer IrresistibleRaw Land Creates ValueThe Risks of Raw Land InvestmentsPrivatized Banking and Raw LandAbout Mark PodolskyLinks
How Do You Invest in Raw Land?
In our interview, Mark starts us out with a case study, using Bruce as a hypothetical. In this instance, Bruce lives in St. Louis, yet owns 10 acres of land in Texas. He also owes $200 of back taxes. He’s advertising two things here: no emotional attachment to that raw land, and there’s some sort of financial distress.
You, as the raw land investor, would look at the comparable sales on his 10-acre parcel for the last 12-18 months. Then, you take the lowest comp divided by four, giving you what Warren Buffett would call a 300% margin of safety. Then you’ll send an actual offer. Pretend the lowest comp is $10,000. You would send an offer of $2,500. Chances are, Bruce will accept the offer, because it’s better than nothing.
In Mark’s case, 3 out of 5 people typically accept his offers. Then it’s time to do his due diligence.
Doing Your Due Diligence with Raw Land
When Mark Podolsky talks about due diligence, here’s what he means:
Does “Bruce” still own the property?Are the back taxes only $200?What’s the ingress and egress?Are there any breaks in the title's chain?Are there liens or encumbrances?Is there legal access?What are the neighbors doing?How far is the property from other services?What are the roads like?What is compelling about the property?
It’s crucial that before you make an investment on a property, you know all the important factors. You can also enlist help: Mark himself outsources this step to his team in the Philippines, because they are connected to an American title company. It’s not costly either. For larger investments, working with an American title company directly is beneficial. Or you can even outsource through Craigslist.
Taking the time or spending the resources to vet your land thoroughly will pay off in the long run.
What Happens Next?
The trick to raw land investments, after you vet the property, is to sell in 30 days or fewer. Then, you can make it cash flow similarly to a rental property, and be ready to invest in the next plot of land. So who do you sell to?
Fortunately, with raw land, you have built-in buyers: the neighbors. Intrinsically, the neighbors are going to have an interest in this land more than anyone else to start. They may want it to protect their privacy, or to build out their estate. Giving them the first pass can often have a huge payout.
Should that not pan out, you have several other options to find buyers. Start with your buyer's list, then you can start looking online:
CraigslistFacebook Marketplace (or buy/sell groups)Land sale websites
How to Make Your Offer Irresistible
How you package and sell the land makes the offer irresistible. You ask for a $2,500 down payment and recoup your investment. Then, Mark recommends this: a monthly payment of $449 over 84 months at 9% interest.
This way, you have a onetime sale, earn your capital back, and then you have monthly cash flow without renters, renovations, or rehabs. Because you’re not dealing with tenants, you’re also exempt from Dodd Frank, RESPA, and the SAFE Act.
[13:28] “The game we play is, can we create enough of these land notes, where our passive income exceeds our fixed expense,
Most people never maximize their full financial potential. That means they don’t accumulate the assets they could, and what they do save and invest isn’t protected and gets eroded too quickly. Then they take distributions in a way that shrinks their income, and they’re always trying to outrun the fear of running out.
https://www.youtube.com/watch?v=L2qIGF_hwn4
Sound too close for comfort? This doesn’t have to be you.
We’re talking with another of our stellar advisors on The Money Advantage team, Scott McCright. You’ll hear the tenured experience he’s gained in over 27 years of working with clients, and his approach as an educator, strategist, and engineer.
So, if one of your goals for the NEW YEAR is a fresh start financially, where you take ownership and lock in a plan you’re CONFIDENT will maximize your potential and do the most with your money… tune in below!
Table of contentsIntroducing Scott McCrightDefining Financial FreedomStrategizing for Full Financial PotentialMindset MattersOpportunity CostReach Your Financial Potential with Privatized BankingBook A Strategy Call
As we usher in this New Year, it’s time to think about your finances with fresh eyes. We recommend starting by zooming out: by looking at the big picture of your finances, you can maximize your lifestyle with efficiency. That means maximizing your income, your protection, your assets, and ultimately, realizing your full financial potential. To do that, you have to know how the pieces fit together.
Today, we’re sharing with you a way to think differently.
Introducing Scott McCright
Scott is a member of the team here at The Money Advantage and offers a really valuable perspective to our clients. What we’ve seen time and time again is that he treats everyone as he would treat his friends. And that is so crucial to our mission here at The Money Advantage and treating finance like a team sport.
After spending time in the Navy, Scott transitioned into the financial services world in 1993. He started first in insurance, and then moved to securities, when he had a realization. He was seeing time and time again that everyone was told to do exactly the same things. The advice wasn’t tailored for the individuals, and no one was really hitting it out of the park either. How could everyone expect to have different results when they were making the same mistakes? So he joined hands with other professionals, to see if there was a better way to help people.
[7:25] “I’m a big believer in, ‘There’s not one specific product that’s going to get you where you want to go.’ It’s more in the how and the why you do things than it is the where.”
Defining Financial Freedom
The financial landscape has gone through many changes over the last few decades, though people can more or less agree on one thing: they are looking for financial freedom. We think one of the best places to start, as highlighted by Scott’s quote above, is figuring out your “how” and “why.”
Get clear on what you want. What does financial freedom look like to you? What will you be able to do once you reach financial freedom, that you cannot do now? There are a few things that happen here when you get really clear on your vision. The first is, you can create a plan, or a strategy. If you’re working with a team of advisors, bringing your ideas to the table can be a great asset to the process.
The next thing that happens is, you create a sort of discipline, because you’ve pinpointed the future that you want for yourself. You’re motivated, rather than defeated by what you don’t have.
This combination pulls you out of the narrow view and allows you to think about your big picture finances. It’s easier to create long-term strategies to reach your full financial potential when you’re working toward specific dreams. This is the time to make sure that all the pieces and parts of your financial life are going to work together to get you there.
Considering Infinite Banking, or IBC, but still a little skeptical?
https://youtu.be/UNw8fUMhiNU
In this episode, we’re talking with Dr. Robert P. Murphy, a free-market economist, who has testified before Congress on energy markets and monetary policy and has given many interviews on TV and radio. He is the author of hundreds of articles and several books on economic topics created for the layperson, including one of his most recent: The Case for IBC.
So if you want to hear from a highly respected economist perspective just why Infinite Banking works … tune in below!
In this episode on The Case for IBC, you’ll hear:
How the Nelson Nash Institute came to beCommon misconceptions about whole life insuranceWhat Dave Ramsey gets wrong about “buy term, invest the difference”Why IBC is about more than just the rate of returnThe future of dividend ratesAnd more!
Table of contentsIn this episode on The Case for IBC, you’ll hear:The Nelson Nash InstituteThe Case for IBCOther Common Objections of IBCThe Future of Dividend RatesClosing Remarks
The Nelson Nash Institute
[7:00] “Carlos and I wrote a book called, How Privatized Banking Really Works.... That phrase [Privatized Banking] was actually Carlos, his idea.”
[8:23] “If you’re doing IBC, you’re not contributing to the problem, because the Austrian view is commercial banking that expands and contracts the credit supply. So if you’re...financing your purchases via policy loans, then you’re not contributing to the boom/bust cycle in the Austrian view.”
[8:58] “...Carlos and I were going around, giving presentations to the public and life insurance agents would hire us often to come do that, you know, presumably knowing that they were going to be able to sell more if we came and talked to a crowd about...the big picture here... And so over time we just realized this isn’t going to work. We need a more formal way of both, you know, training agents to make sure they know what Nelson’s principles are and how to design these policies correctly, but also so we feel comfortable… [putting] the public into the hands of certain life insurance professionals… So that was the birth of the IBC practitioners program.”
You can find out more about Nelson Nash here: Nelson Nash: The Father of Infinite Banking (IBC)
The Case for IBC
[13:30] “... often this concept clicks with [business owners] sooner than with other people, is [because of] the importance of cash flow. So for like a salaried employee, you know, they kind of know every month how much money is coming in the door, and then they have their bills. And they’ve just got to make sure… [they] spend less each month than what’s coming in.”
[15:20] "I came across a pretty sophisticated critique of IBC a while ago, from another economist, and he said, 'You know, this concept actually makes sense. What they’re really doing here is using an asset as collateral to then borrow money from some other institution to finance their cash flow. And they happen to be using life insurance or using...the cash surrender value, and a dividend paying whole life insurance is the collateral... When in principle you could take your house, as long as you have a bunch of equity, and go to a commercial bank and take out either a home equity loan or a HELOC.'"
"And so... the concept the economist was arguing was, 'It has nothing to do with life insurance, and the only reason they’re doing it with life insurance is to get the commission.'"
"So I go through and explain why, actually, that’s a perfect illustration of why Nelson was right to pick this vehicle or platform of a dividend paying whole life policy."
Other Common Objections of IBC
[19:54] “So another common one is… 'Oh everyone knows a whole life policy is a terrible place to put your money, you should buy term and invest the difference.’”
[20:47] “The way we put it is that the whole life insurance policies are the platform upon which IBC is implemented...
Want to optimize your money and maximize your wealth and income for life, and curious about how we can help? Been listening for a while and want to learn more about our company and what we can do for you? Today, we're taking you behind the scenes of The Money Advantage.
https://www.youtube.com/watch?v=pS5o1gL_vzE
So, if you want to get to know us, what we do, and why we do this work … tune in below!
Table of contents“Why” The Money AdvantageRachel Marshall Bruce WehnerWhat is The Money Advantage Philosophy?Our 9-Step Signature ProcessFoundationProtectionIncreaseFinance is a Team SportBook A Strategy Call
“Why” The Money Advantage
Today, we’re sharing more about who we are and why we do what we do. First and foremost, the Money Advantage exists to help wealth creators build financial freedom. There are three key components to this wealth building:
Cashflow StrategiesPrivatized BankingAlternative investments
We’re your team of financial architects, and our goal is to help you get into a position where you never run out of money. What we so often see is people who make a lot of money, yet aren’t being as efficient as possible. This can create a lot of financial stress.
Money is emotional, and that causes people to hold their financial state close to their chest. Yet by not talking about money, we do ourselves a disservice. So we also look for ways to help people improve their money mindset.
Rachel Marshall
Rachel Marshall is the co-host of The Money Advantage Podcast, co-founder of The Money Advantage, and Chief Financial Educator. The education that she provides, through podcasts and articles and videos, helps you understand your financial life so you can choose a way forward. Her role is to look for any way possible to help you understand how to keep control of your financial life.
Rachel has been a lifelong teacher—helping others learn the concepts she was learning herself. She looks most forward to seeing that flash of inspiration and awareness when someone understands something they didn’t know before.
Nine years ago, Rachel went into this business with her husband, Lucas. It stemmed from a desire to build their own financial freedom. And what they realized was missing, at the time, was liquidity. After recognizing the need of wealth creators to maximize cash flow and have access to capital, they recognized the tremendous value of Privatized Banking and began their own policy. Then, a near-death experience truly opened her eyes to the importance of the death benefit and helping others build the greatest legacy possible.
Bruce Wehner
Bruce Wehner is the Chief Cash Flow Strategist & Lead Advisor at The Money Advantage. Growing up in the 60s' and 70s opened Bruce’s eyes to the financial struggles of business owners like his father. After Nixon removed the gold standard, massive inflation made it difficult for businesses to stay afloat, and interest rates were continuing to spike year after year. This got him thinking about personal finance, and how businesses worked.
He then began a teaching career of 17 years, in which he experimented with entrepreneurial pursuits. It was at this time that he became involved in the insurance business and real estate. Eventually, he landed in St. Louis, where he remains today, and works with e3 Consultants Group and The Money Advantage.
Bruce is also a certified Nelson Nash practitioner, which means he focuses first on guarantees. Wealth building is first about the money you protect, not hitting a home run. So he helps people create financial teams and protect more of their wealth through guarantees.
What is The Money Advantage Philosophy?
The financial status quo is to build the biggest pile of money possible and then live off of that money in the future. What happens too often with this strategy, is that the money is in the control of everyone else--investment managers, banks, and mortgage companies.
Now and then, you have the chance to meet extraordinary people and learn more from their story than you ever thought possible. This conversation with Steven Sashen of Xero Shoes is one of those opportunities!
https://youtu.be/ZxaGb90SUtY
In this episode, we’re talking with Steven Sashen about shoes, speed, and success. He’s one of the fastest men over 55 in the country, co-founder of Xero Shoes that’s creating not only a brand, but a movement, he’s also turned down a $400K funding offer on Shark Tank.
So if you want to learn from a successful entrepreneur, so you can build a life and business you love … tune in below!
Table of contentsIn the Business of Making Xero ShoesFrom DIY to Worldwide RecognitionTurning Down Shark TankXero Shoes: A Fast-Moving CompanyChance vs. ControlTaking Responsibility of Your FinanceCash Flow in BusinessXero ShoesAbout Steven Sashen
We believe that his ability to create a community and a movement is something that you can benefit from as business owners and entrepreneurs. No matter where you’re at in the journey, we think you’ll find something valuable in this conversation with Steven Sashen. Enjoy the show notes below.
In the Business of Making Xero Shoes
When you think of how a business gets its start, you probably think of all the planning, designing, and prep work that goes into a brand. However, that’s not quite how things happened for Sashen.
[3:27] “The way it actually happened is my favorite thing, which was a complete accident. So what happened was...a little over 13 years ago, I was 45, I got back into sprinting after a 30-year break, which I don’t really recommend. I was getting injured constantly for like two years. And finally, a friend of mine, who’s like a world champion runner...said, ‘Try running barefoot and see if you learn anything about why you might be getting injured.’”
This planted the seed, and Steven discovered that running barefoot allowed him to correct his movements with more ease and fluidity.
From DIY to Worldwide Recognition
When Steven Sashen finally hit his stride, everything changed. That’s when he knew he must lock-in the benefits of this natural movement. He had heard of natives in Mexico who ran with sandals made from scraps of tire. So he created his own version.
With some rubber from a shoe repair shop and cords from Home Depot, he created what we could consider his first prototype. Here and there, friends would request their own. Then one day, he was approached with the opportunity that started it all.
A barefoot running coach was writing a book, and said that if Sashen treated this hobby like a business and made a website, he’d feature it in the book. In the following three and a half years, Xero Shoes became a DIY sandal-kit company. Now, Xero Shoes sells a complete line of casual and performance shoes, boots, and sandals.
Turning Down Shark Tank
Early on, Xero Shoes appeared on Shark Tank. And though they were offered $400,000 Sashen turned the money down. This sparked a lot of discussion on whether he made the right decision.
[12:38] “People kept telling us all along that we should be on the show, we didn’t even know what they were talking about. And then we found the show.”
Steven Sashen realized that, were they to get on Shark Tank, regardless of the outcome, it would be free exposure to millions of people.
[13:37] “The thing that was really valuable is that once they told us they wanted us on the show, it really made us focus on who were are, what we did, and what we wanted.”
[15:40] "So the key moment though, was that thing with Kevin, where he offered us 400 grand for half the company, [and] we were offering 8% of the company. We had done a lot of research about valuations of footwear brands. And so we knew what the range for yes and no was, we were very negotiable. We just didn’t get that far, and so it was a non-starter.”
Xero Shoes: A Fast-Moving Company
Want to shelter your assets from the prying eyes of the IRS, claims of creditors, or the public? Cash surrender value and life insurance proceeds are exempt from creditors in most states. In this episode, we’re talking about the privacy and creditor protection of life insurance.
https://youtu.be/yu7D09hTe3M
So, if you want to know how to protect your wealth, from future risk of litigation, civil suits, bankruptcy, or even divorce … tune in below!
Table of contentsWhere Creditor Protection of Life Insurance Fits In The Bigger PicturePrivacy and Protection LiabilityLiability Insurance and AutoThe Privacy of a Life Insurance PolicyCreditor Protection of Life Insurance Cash ValueFederal LawHow Creditor Protection of Life Insurance Policies Varies by StateWhen Life Insurance Exemptions Don't ApplyOther Types of Asset ProtectionFor More Information on Protection From the Claims of Creditors
Where Creditor Protection of Life Insurance Fits In The Bigger Picture
Life Insurance is just one step in the greater Cash Flow System.
While it’s nestled into Stage 2, Protection, it also improves everything else around it. Infinite Banking helps you keep more of the money you make in Stage 1, amplify your cash-flowing asset strategy in Stage 3, and accelerate your Time and Money Freedom.
Privacy and Protection Liability
Privacy and protection liability are never something you need until you actually need them. In other words, most of us operate as if “it won’t happen to us,” and when an event occurs, it’s too late to protect against.
For protection from creditors, and protection in bankruptcy, it it’s not the wealthiest who need protection the most. Although they're the most likely to protect their wealth. The people who should be most interested in asset protection are those who have fewer assets and cannot afford to lose them.
Asset protection isn’t the most exciting topic, yet it is something that the wealthy think about. Success leaves clues--follow these clues that the wealthy leave and see how they grow and protect their assets.
Liability Insurance and Auto
A Property and Casualty insurance agent once said people don’t think about liability until after the fact. So much so, that many people think that their auto insurance covers all liability. It doesn’t. So if your dog bites somebody at the park, and causes an injury that lands them in the hospital, those hospital bills can come back to you. If the bills are above your liability coverage, a creditor can take this debt and potentially use up your assets to cover it.
Small or random incidents like this can happen, and they do happen all the time. Then, because we don’t think we need protection from them, we don’t have it in our times of need. It’s one thing to have an emergency or opportunity fund, it’s another thing to have a protected asset to act as this fund, that creditors cannot garnish or seize.
The Privacy of a Life Insurance Policy
Life insurance is an incredibly private asset, meaning that no one can really see past that insurance barrier and know how much wealth you have. Privacy, especially around finance, is a significant concern in our society.
Privacy is a huge advantage of whole life insurance. You don't need to report your life insurance policy's earnings to the federal government. It’s so private, in fact, that you need not report it as an asset when applying for federal aid.
If your child is applying for college assistance through FAFSA, you don’t need to include your life insurance policies on the form. This can help your student receive better funding. Nor are you required to list it as an asset on loan applications, although sometimes it can help you secure better loans.
Creditor Protection of Life Insurance Cash Value
As a living asset, whole life insurance has tremendous benefits in the way of Privatized Banking. It’s a tool for legacy and estate planning,
Should you be concerned about asset protection? What types of risk should you know about? What you don’t know about protecting your assets CAN hurt you. In this episode, we’re talking with Douglass Lodmell, one of the nation’s leading asset protection experts and founder of Lodmell & Lodmell about asset protection and how it works.
https://youtu.be/d173g5beiU8
So if you want to learn about the keys to asset protection, why insurance isn’t enough, and how to protect real estate, other physical assets, securities, and liquid assets … tune in below!
Table of contentsWhere Asset Protection Fits into Your Cashflow Creation SystemHow to Keep Your WealthWhat is Asset Protection?LLCs and Limited Partnerships as Asset ProtectionSetting Up Your LLCMisconception of LLCsThe Next Level of Asset ProtectionAsset Protection TrustFraudulent TransferAbout Douglass LodmellContact Douglass Lodmell
Where Asset Protection Fits into Your Cashflow Creation System
Protecting assets with legal planning will maximize your peace of mind. But it’s just one small step of a greater journey.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund. This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.
Then, you’ll protect your money with savings, privatized banking and legal protection. This is where estate planning fits in. You’ll know that no matter what happens to you, your wishes will be carried out, your assets will remain intact, and your wisdom will empower generations after you.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.
How to Keep Your Wealth
Once you’re wealthy, the trick is to stay wealthy. One of the number one reasons that a person's wealth comes crashing down is a lack of proper asset protection. Unlike other countries, the United States is very litigious. To put it bluntly, people don’t sue the poor, so you have additional risks to mitigate when you build wealth.
Douglass Lodmell, of Lodmell & Lodmell, is one of the nation’s leading asset protection attorneys. His firm handles $4 billion worth of assets. He shares with us the pyramid of asset protection, and why it matters.
What is Asset Protection?
Asset protection comes in many forms. If you don’t have any assets, that’s asset protection. Similarly, having assets that are exempt from creditors acts as protection. For example, you could have a $15 million home in Texas, and $100 million in debt, and no one could touch your home because of Texas' homestead exemption.
Another protected asset? Retirement funds, because under the ERISA (Employee Retirement Income Security Act), the government decided not to allow people to lose retirement money through lawsuits. Otherwise, the burden would be back on the government.
True protection begins with a review of all your assets. Then you can identify what's exempt, and where to strategize. Asset protection strategies take your assets back off the table and away from creditors and lawsuits.
Life Insurance as Asset Protection
Life insurance is another asset that typically falls into the exempt category, however this varies from state to state. In some states, your entire policy could be exempt from creditors, while in other states, only a portion is exempt.
When you’re looking to protect your life insurance, first you must look at your state. If you have 100% exemption, you don’t need to do anything else. If it’s not, then you look for other ways to protect it, either through holding companies or directly into asset protection stocks.
LLCs and Limited Partnerships as Asset Protection...
Are you considering whole life insurance and want to know which is better: Direct vs. non-direct recognition life insurance companies? What does it mean? Why does it matter? How does it impact you? And should it be a part of your decision-making process?
https://www.youtube.com/watch?v=y1UZ_EYIns0
In this episode, we discuss the why, how, and what of direct recognition vs. non-direct recognition, so you have the knowledge you need to decide.
So if you want to know how a life insurance company’s treatment of dividends when you have a policy loan affects your policy’s cash value growth over time and your future ability to borrow against your policy for Infinite Banking, find out whether it matters, and most importantly, tune out the biased opinions of some who say you should ALWAYS have it one way, and NEVER the other, and really understand it, so you can get the best dividend-paying whole life policy, tune in below!
Table of contentsWhere Whole Life Insurance Policies Fit Into the Bigger PictureWhat Does Direct or Non-Direct Recognition Mean?Direct vs. Non-Direct Recognition CompaniesHow Policy Loans Affect DividendsFixed vs. Variable Loan RatesShould You Choose Direct or Non-Direct Recognition?Choosing the Best Life Insurance CompanyReady to Start Your Life Insurance?
Where Whole Life Insurance Policies Fit Into the Bigger Picture
Privatized Banking with whole life insurance is just one part of the bigger journey.
That’s why we’ve developed the 3-step Cash Flow System. It’s your roadmap to go from just surviving, to a life of significance, purpose, and financial freedom.
The first stage is the foundation. You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable.
Then, you protect your money with insurance and legal protection and Privatized Banking.
Finally, you put your money to work, increasing your income with cash-flowing assets.
What Does Direct or Non-Direct Recognition Mean?
When you’re shopping for a life insurance policy, you’re likely going to hear an insurance agent use the terms direct and non-direct recognition thrown around often. The terms have roots in the relationship between dividends and policy loans. Whole life insurance dividends are the non-guaranteed part of the life insurance contract, though historically companies have an excellent track record of paying dividends. Each year, companies will declare their dividend rates.
However, companies handle dividends differently depending on whether you have an outstanding policy loan. Direct recognition companies directly acknowledge outstanding policy loans and will pay dividends accordingly. This often means that they have a different, unpublished rate for any money that is being borrowed against.
On the other hand, non-direct recognition companies pay dividends at the same rate, regardless of any policy loans. The trade-off is that Non-Direct Recognition companies only have one dividend rate, which often seems lower than direct recognition dividends.
However, companies all declare dividends differently, so it’s not an apples-to-apples comparison. It’s tempting to see a higher dividend and jump on it, however, these rates are projections. Factors such as the age of your policy and your paid-up additions can affect whether you get more or less than the projection. Whether or not you will use your policy as a family bank will also change which option you go with.
Direct vs. Non-Direct Recognition Companies
With non-direct recognition vs. direct recognition insurance companies, there are strong opinions on either side of the argument. We truly believe that there is a middle ground, and caution you against anyone who explicitly states that one or the other is ALWAYS or NEVER better. This simply isn’t the case.
If one of these things was truly better by a significant margin, they would not both exist today. And yet both models are going strong.
Are you looking for opportunities to invest in real assets for cash flow? Today, we’re talking with Dave Zook, a successful investor and syndicator who creates value for people through opportunities for investing in ATMs. We also discuss investing in other real assets: multi-family apartments, and self-storage.
https://www.youtube.com/watch?v=0HCjitn757s
So if you want to learn about investing for cash flow in real assets that withstand market turmoil, tax-efficient investing, and creating momentum through stacking investments … tune in below!
Table of contentsWhere Does Investing Fit in the Cash Flow System?How Investing in ATMs is Tax AdvantagedApplying the Tax Code to ATMsHow Does Investing in ATMs work?An Opportunity for 7 YearsThe Future of Investing in ATMsBegin Investing in ATMs TodayAbout Dave Zook
The most popular alternative investments we talk about on The Money Advantage is real estate. Interestingly enough, investing in ATMs is almost like real estate, though it probably hasn’t crossed your radar. ATM investing is a great way to invest for cash flow, and Dave Zook has changed the game.
No matter how large your pile of money is, cash flow is what allows you to build time and money freedom. You’ve got to have money flowing. Investing in ATMs is one way to create a cash flowing investment, with some significant tax benefits.
Where Does Investing Fit in the Cash Flow System?
Investing is just one step in the path to time and money freedom.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It’s your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking.
Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
How Investing in ATMs is Tax Advantaged
Dave Zook stumbled into ATM investments after landing a tax bill of about $500,000. He realized that despite all the time and effort he had poured into his business, he’d still have to give half of his earnings back to the government. That's when he researched tax strategies, many of which we talk about on The Money Advantage. He discovered the secret to tax-free wealth using the incentives that the government wants you to take. Through investments and practices that support the economy, the government will reward you with deductions.
Multi-family apartments were Dave Zook's starting point to take these tax benefits. Providing housing is one of our favorite ways to slash taxes. It creates monthly cash flow, and it provides a necessary service to the public. The government doesn’t want to act as a landlord, so by properly structuring your real estate deal, you can partake in certain deductions. Not to mention, your Privatized Banking system is an ideal way to fund the purchase of properties. This strategy helped him continue to have fun in his line of work, while simultaneously making money that he didn’t have to lose. Thinking differently put Zook in a position to keep more of what he had and put it to work in more ways.
By bringing his tax liability down to around 0-3%, Dave could invest in other asset classes like self-storage and ATMs. After passively investing in ATMs for a few years, a sponsorship team approached Zook to become a partner and scale the business. Now, they’re one of the top 5 ATM operators in the country.
In Zook’s words, “The times where you learn the most are when you’re experiencing either great pleasure or great pain.” For him, having only a few days before April 15th to come up with a couple hundred thousand dollars was the catalyst for major change.
Applying the Tax Code to ATMs
Section 179 of the tax code is a great incentive for businesses both big and small.
Do you want to use whole life insurance to store cash, build an emergency/opportunity fund, and create a legacy, but you wish you’d learned about this concept when you were younger? Do you feel like you’re too old for the Infinite Banking Concept (IBC)?
https://www.youtube.com/watch?v=ZX91AY2tYlo
Fortunately, it might not be too late for you to get started. In this episode, we’re going talk about how life insurance works when you start a policy later in life, and how you can make the most of it. So if you want to see if Privatized Banking can still work to build cash value and accelerate time and money freedom, even if you’re starting a policy as a senior, tune in below!
Table of contentsWhere The Infinite Banking Concept Fits In The Bigger PictureHow Old is Too Old for Infinite Banking?The Impact of Privatized Banking Later in LifeHow Can You Use Privatized Banking Now?Transfer of IRAFamily BankingPrivatized Banking As IncomeSocial Security and Pension MaximizationVolatility BufferPermission to SpendAccelerated Death Benefit RiderNot Too Old for Infinite BankingBook A Strategy Call
Where The Infinite Banking Concept Fits In The Bigger Picture
The Infinite Banking Concept is just one step in the greater Cash Flow System.
While it’s nestled into Stage 2, Protection, it also improves everything else around it. Infinite Banking helps you keep more of the money you make in Stage 1, amplify your cash-flowing asset strategy in Stage 3, and accelerate your Time and Money Freedom.
How Old is Too Old for Infinite Banking?
Many people assume that because Privatized Banking takes time, that after a certain age it’s no longer a viable strategy for them. In reality, there’s more time than you’d think. Your results, after a certain age, will depend more on what you’re hoping to accomplish than anything.
Most people look at life insurance and think of term insurance, the simplest insurance, and have preconceived notions. It’s insurance that is pure cost. And based on experiences with term insurance, people are hesitant to pursue insurance strategies later in life. However, whole life insurance can work for you even if you start in your senior years.
Whether you’re hoping to bridge income, leave a legacy, or round out your estate plan—it’s likely not too late. You can be in your 70s and start your first policy. In reality, most insurance companies will take policies until age 80. So clearly, they believe that it’s valuable enough for someone in their 70s.
Ultimately, this is possible because of the careful actuarial planning of life insurance companies, which allows them to insure people up to that point.
The Impact of Privatized Banking Later in Life
One of the biggest concerns we hear is that the cash value won’t be as large. While it’s true that your break-even point may be later, the trajectory will be more or less the same. The opportunity cost lost in your cash value may only be a few hundred dollars. The amount of cash value is proportionate to the way the policy is designed, and the premiums paid because of that design. The most significant loss is the face value of your death benefit. What would be a $2 million death benefit for a 30-year old is going to be about $1 million for a 50-year-old. For a 70-year-old, it may be closer to $500,000. However, that half a million will have a better impact on your legacy planning than nothing.
The reason the death benefit will decrease the older you are when you start a policy is that the cost of insuring you goes up. Insurance companies know that they’ll have to pay a claim on everyone they provide whole life insurance to; however, they use very careful mortality calculations to do so. The likelihood they’ll pay a claim on a 30-year-old is minuscule. So the costs of insurance are more likely to be covered. Someone in their 70s is likelier to have a claim paid sooner, which means the company has a smaller window to cover the costs of insura...
Are you concerned about ballooning healthcare costs? You should be! It’s an expense that’s risen far faster than inflation, and paying more than you need to is a money leak that prevents you from making the forward traction towards your financial goals that you deserve.
https://www.youtube.com/watch?v=x9J6MGxNFMU
In this episode, we’re talking with Dave Chase about how community-owned health plans are revolutionizing a stagnant industry that’s failed to develop.
So, if you want to learn how to save 20—40% in healthcare costs while improving access to high quality, trustworthy, local, affordable care, with a solution-oriented look at transforming the industry, and your life with it… tune in below!
Table of contentsWhere Profit Maximization Fits into the Cash Flow SystemYou’re in the Healthcare BusinessAre Healthcare Costs Legitimate?Health Insurance vs. Healthcare CostsDirect Contracting HealthcarePreventative HealthcareAbout Dave Chase
Where Profit Maximization Fits into the Cash Flow System
Minimizing your health care costs, so more of the money you make is yours to keep, is just one part of a bigger journey to building time and money freedom. No matter how big your business grows and how much money you make, if it’s all leaking out between your fingers, you’ll never be free of just working harder and harder to make more money.
That’s why we have created the 3-step Business Owner’s Cash Flow System, your roadmap to take you from just surviving, to a life of significance, purpose and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance, legal protection, and Privatized Banking. Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Minimizing health care costs happens right here in The Money Finder step of your financial foundation. When you find, recover, and keep more of the money you’re making, you put more gas into your cash flow machine. And that accelerates your time and money freedom.
You’re in the Healthcare Business
...regardless of whether you like it or not. If you’re a business owner, healthcare should be a part of your business model. It’s the last area to modernize inside businesses. However, the health of your employees directly affects their work, so it’s an essential element of running a business.
The rising healthcare costs, thanks to health insurance, leave individuals and businesses alike feeling downtrodden. However, insurance is not the only solution for health and wellbeing. The common misperception is that solving healthcare seems as difficult as solving Middle East peace. That is only true if you believe and work with those desperately focused on preserving the status quo. The distinction lies between care and insurance.
Are Healthcare Costs Legitimate?
Health care isn’t expensive. What's expensive are price-gouging hospitals, profiteering PBMs, bloated carriers, inappropriate treatment, and outright fraud. Only $0.08 of every $1 ostensibly spent on healthcare goes to physicians ($0.27 for all).
As a result, medical practices are shutting down, while mega-carriers are making record-breaking profits.
The solution is to rethink care. How can employers provide care in a way that is cost effective for everyone?
In the era of high deductible health plans, there are large and fast-growing markets in the direct contracting (employer to provider) and cash pay markets. Because the underlying costs of care haven't changed (i.e., clinician pay and medical supplies), there is no good reason for hyper-inflating prices.
Organizations like Pacific Steel put this insight into action. Four years ago, they were spending over $8 million on health benefits (for 750 employees). Last year, they closed out at under $3.5M while benefits improved.
Do you love the idea of getting whole life insurance dividends, but are stuck comparing one company’s dividend performance to another? Should you go with the company that has the highest dividend rates? What do the dividend rates even mean? How do I consider how dividends will impact my long-term cash value growth? Will the company meet its projections?
https://www.youtube.com/watch?v=AwW0cKHR-sA
We have welcomed the former Regional VP of Lafayette Life Insurance Company, Perry Miller to talk with us about whole life insurance dividends.
So if you want to see how dividends work, understand how they will impact your policy in the future, and make the best decision when starting your Privatized Banking policy now, so you’ll get the most use out of your money later, tune in below!
Table of contentsWhere Whole Life Insurance Fits Into the Bigger PictureWhat is a Whole Life Insurance Dividend?The Guarantees of Whole Life Insurance4 Myths of the Whole Life Insurance Dividend1. The highest declared dividend means you’ll get more growth in the long term.2. Dividend rates mean the same thing from one company to another.3. Today's dividend rate on the illustration means guaranteed dividend rates in future years.4. Everyone gets the declared dividend.Direct recognitionLook Deeper than Whole Life Insurance DividendsWho is Perry Miller?Ready to Start Your Life Insurance?
Where Whole Life Insurance Fits Into the Bigger Picture
Privatized Banking with whole life insurance is just one part of the bigger journey.
That’s why we’ve developed the 3-step Cash Flow System. It’s your roadmap to go from just surviving, to a life of significance, purpose, and financial freedom.
The first stage is the foundation. You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable.
Then, you protect your money with insurance and legal protection and Privatized Banking.
Finally, you put your money to work, increasing your income with cash-flowing assets.
What is a Whole Life Insurance Dividend?
There is some confusion in the marketplace equating whole life insurance dividends with stock dividends, however, they’re not the same. Stock dividends are issued from investing, while mutual companies issue dividends attached to their whole life insurance product. These dividends are a calculation of a few factors, including expense and interest rate forecasts, portfolio performance, and mortality rates.
The Guarantees of Whole Life Insurance
Premium, death benefit and cash value are guaranteed by mutual insurance companies. Dividends are the icing on the cake. By charter and by law, insurance companies must pay contractual guarantees. If rates, mortality, and expenses change or fluctuate, that can affect the company’s ability to pay those guarantees.
So the dividend is like the safety valve. If something doesn’t work out as expected, company's will lower dividends to compensate. On the flip side, if those factors do better than projected, you get to participate in higher rates as well.
Most companies can boast that they pay dividends regularly, yet do they meet the projections? Not always. However, that flexibility allows them to meet their guarantees. This mechanism allows the companies to give policy owners the certainty of the death benefit and other guaranteed provisions. So not only are the dividends a bonus, they act as an assurance that the company will meet their contractual obligations.
Current Gross dividends are around 4-6%, yet we'll show you below why that may not be what it seems.
4 Myths of the Whole Life Insurance Dividend
- The highest declared dividend means you’ll get more growth in the long term.
When comparing policy illustrations, the numbers can be complex. And on occasion, policies will be nearly identical, and the only major difference appears to be the dividends. On the surface, you’d think that makes the decision simple.
Do you want the freedom to sell real estate at the top of the market and wait to invest until the right time, without having to rush cash into a new property with a 1031, but still be able to defer taxes? A deferred sales trust may be for you. In this episode, we’re talking with Brett Swarts about why investors need to know about the Deferred Sales Trust.
https://www.youtube.com/watch?v=SvbmzY7Xqw4
If you want out of the box solutions to capital gains, a rescue from a failed 1031, or to find out how to save capital gains taxes over the deferral limits, so you can maximize your real estate investing progress and momentum, in your own timing and on your own terms … tune in below!
What is Capital Gains Tax?
Capital gains tax can seriously reduce profits from your investments when you sell them. And there is any number of reasons you might be selling an investment. On investment real estate, you pay capital gains taxes on appreciation over your cost basis and the recaptured depreciation of the asset sold.
However, the tax rate for capital gains is why strategies exist to defer and diminish their effect. These are legal tax incentives that the IRS actually encourages entrepreneurs and investors to use, to continue to stimulate the economy. If you can overcome a big payment now, you set yourself up to take advantage of bigger and better opportunities.
You’ve likely heard of the 1031 Exchange, which allows you to defer capital gains tax. However, the 1031 has limits. You have 45 days to identify the new property, and 180 days to close. And, it requires an equal trade—a like-kind asset of equal or greater value. When it makes sense, it’s a great provision, but results depend on the market.
Then, there’s the deferred sales trust—which allows you to play the long game.
What is a Deferred Sales Trust?
When investors sell their properties, a 1031 Exchange is a popular choice and allows them to transfer ownership without realizing capital gains. However, in a market like 2008, it isn’t nearly as effective. Investors who had taken on too much debt and overpaid for their properties were finding themselves selling high and then buying high.
If a 1031 exchange doesn’t seem right for you, or you're unable to complete your exchange, you won’t want to sit on your cash. Otherwise, you’ll be paying up to 20% in federal capital gains taxes, plus there could be additional state and Medicare taxes, depending on which state you live in. On top of that, you'll owe depreciation recapture taxes at ordinary income tax rates.
With a DST, you work with an outside trustee to sell the property within the trust. Rather than receiving a big payout upon closing, the money goes into a trust. From there, you’re only taxed as the money is distributed. The funds from the sale allow you to diversify your investments, giving you the chance to wait for the right deal. There’s no pressure to purchase another property. Where a 1031 is quick, a deferred sales trust allows patience.
By setting up a trust, a trustee can re-invest the money from your sale in a diversified portfolio, use up to 80% of the funds to purchase new properties (without it needing to be of equal or greater value), and provides liquidity.
Deferred sales trusts put time on your side.
How Does a Deferred Sales Trust Work?
A deferred sales trust can seem overwhelming with all the moving parts. Fortunately, you don’t have to do it alone. The IRS requires that you have a 3rd party “trustee” to oversee the management. This means you can partner with professionals, such as Brett Swarts, to find a buyer, make the sale, and set up investments.
And if you find a real estate deal that you’re interested in, you can partner with your trust as an LLC to take the deal. You can do so immediately, or ten years down the road—you have the freedom to make the call. And you have more investment options with a deferred sales trust,
Do you have a life insurance policy you’re concerned may not last, lacks guarantees, or may lapse, and you’re wondering how you could trade it in for a better model? The good news is that you have options, and you’re not stuck forever! Enter: the 1035 exchange. But, a strong word of caution: you need to understand what this entails and when it might hurt instead of help you.
https://www.youtube.com/watch?v=xzmzl8TkMDM
In this episode, Bruce and I discuss when you should use a 1035 exchange with life insurance. If you want to know the pros and cons of a 1035 Exchange--tune in below!
In this episode, you’ll learn:
What a 1035 exchange is and how it works.The reasons why (or why not) to do a 1035 exchange.Challenges you may face during the process.And more!
Table of contentsWhere Whole Life Insurance Fits Into the Bigger PictureUnderstanding the 1035 ExchangeReasons for ExchangingReasons Against ExchangingWhat You Really Should KnowThe 1035 Exchange ProcessIs a 1035 Exchange Right for You?
Where Whole Life Insurance Fits Into the Bigger Picture
A 1035 Exchange could be what allows you to ensure your life insurance is there for your entire life, however, Privatized Banking with whole life insurance is just one part of the bigger journey.
That’s why we’ve developed the 3-step Cash Flow System. It’s your roadmap to go from just surviving, to a life of significance, purpose, and financial freedom.
The first stage is the foundation. You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable.
Then, you protect your money with insurance and legal protection and Privatized Banking.
Finally, you put your money to work, increasing your income with cash-flowing assets.
Understanding the 1035 Exchange
A 1035 Exchange is available through a provision in the IRS tax code, which allows you to transfer specific assets into assets of a like-kind without having to pay tax. Today, we’re talking specifically about the transfer of life insurance policies and why you would want to do a 1035 exchange in the first place.
Most often, a 1035 exchange is on the table when you have a policy that no longer seems like an ideal fit for you. If your insurance policy was not designed with you in mind or lacks guarantees, you are likely a candidate for a 1035. Regardless, if a policy isn’t working for you, know that you’re not stuck—you have options.
That said, it’s not always ideal to exchange a policy. It’s important to be informed about what a 1035 can and cannot do so that you’re not taken advantage of down the road.
Reasons for Exchanging
In some cases, it’s possible that you have a less-than-ideal policy design, and it feels like you’re continuing to pour in money with few guarantees. We see this often with universal life insurance. The problem is in the language of how some advisors pitch these products—flexible premiums aren't all that flexible.
In the later years of an in-force IUL, the cost of maintaining your policy can increase because premiums are non-guaranteed. So even though you can make flexible premium payments, you could be under-funding it and lose your policy.
To get a better idea of how your policy is performing, we recommend requesting an in-force illustration of your life insurance policy from your company. This will show you how your policy has performed and the projections for future performance. You will also see which guarantees you have, and which ones you do not. Use this information to assess whether or not your policy is doing what you want it to do.
Ultimately, we see people exchanging policies that just aren’t living up to their expectations. If you don’t currently have a life insurance policy, take some time to think about what you want to accomplish—leaving a legacy, protecting your family, leveraging your cash value, or more? And if you do have a policy, check-in and make sure it’s accomplishing what you wa...
This week, we welcome John Moriarty back to the Money Advantage Podcast. In Part 1, we talked about building a family bank on a conceptual level. Now, we pull in real facts and figures to show you how private family banking looks in action.
https://www.youtube.com/watch?v=ghvEU4tXzw8
If you have considered implementing family banking and didn't know where to start or what it looked like, this is your chance to pull back the curtain. And this is not speculation. John is showing us how he personally implements the Infinite Banking Concept to be the banker and build his family bank.
Now is your opportunity to see behind the scenes! You’ll see a high level of funding, cash value, how he is using policy loans, the internal growth of each whole life policy, the death benefit, and how he's getting a front-row seat to opportunities. Why? It's all because of this family banking system and tool for storing cash reserves.
Table of contentsIn This Episode, you'll learn:Where Private Family Banking Fits into Your Cash Flow SystemThe "Mystery” of the Family Bank The Basics of a Family Banking SystemEnjoying Your MoneyPrivate Family Banking with Whole Life InsuranceWhy Would You Want to Borrow Your Own Money?The Long GameStart Your Family BankGet the Moriarty 11-Year Case StudyBook A Strategy Call
In This Episode, you'll learn:
What it takes to become your own banker and start a family bankHow to build a family bank with whole life insurance policies over timeWhat you can and cannot do with a whole life insurance policyWhy you should not fear interest chargesHow to structure your repayment strategy
Where Private Family Banking Fits into Your Cash Flow System
Family Banking is just one step in the greater Cash Flow System.
It fits into Stage 2, a part of keeping and protecting your money.
We said before that Privatized Banking is like the peanut butter to your cash flow sandwich. It’s wedged between Stage 1 – keeping more of the money you already make – and Stage 3 – increasing your cash flow from investments.
And it helps you do everything else better. Infinite Banking increases your financial efficiency, enables you to keep more of what you already make, amplifies your cash-flowing asset strategy, and accelerates your time and money freedom.
The Infinite Banking Concept is the how of keeping and protecting your money. And a whole life insurance policy is the what.
The "Mystery” of the Family Bank
The idea of Infinite Banking, and thus family banks, is often shrouded in mystery. Mainstream financial advice makes it seem more difficult and unattainable than it is. Yet we know that what it boils down to is sound money principles--how you take control of the banking function yourself.
If you consider yourself to be a disciplined person, you can implement and benefit from family banking strategies.
The Basics of a Family Banking System
While saving is the first component of private family banking, Infinite Banking can be considered a system for cash flow management. A whole life insurance policy offers a way to take your savings and optimize it from a cash flow standpoint. While this concept is not new, whole life insurance policies became more publicized when Nelson Nash wrote Becoming Your Own Banker.
The benefit is that you can customize whole life insurance to perform in ways suited to your goals. Then, you can leverage the cash value of your life insurance to take out loans against your policy, instead of going to the bank. And all the while, your policy cash value continues to grow, uninterrupted.
With the right strategies, you can finance virtually anything you can imagine. Can you say the same for banking institutions? Your personal and business economies can both benefit from your ability to leverage your assets.
Enjoying Your Money
In a well-structured strategy, not all of your “moves” have to be related to wealth accumulation or investments.
https://www.youtube.com/watch?v=jFbebed_F78
Want to know what happens to your real estate portfolio after you’re gone? In this episode, we’re talking with Ron Phillips—CEO of RP Capital, a real estate brokerage—about his client who passed away. It turns out, his family didn’t even know what assets he had, or what to do with them, and it almost cost them a fortune in taxes. Tune in to hear what hoops they had to jump through, and how to avoid the same wealth transfer risks, so you and your family can be much better prepared.
Table of contentsIn this episode with Ron Phillips, you’ll learn:Where Legacy Fits In The Bigger PictureLegacy & Wealth Transfer Risks, Conversation Highlights from Ron PhillipsHow Mindset Affects Your Real Estate DealsRon’s Real Estate BusinessPlaying to WinRon's ClientsWealth Transfer RisksWills and ProbateWhat is a Legacy?Who is Ron Philips?Links and MentionsWant to Talk About Family Banking with Whole Life Insurance?Thanks for Tuning In!
In this episode with Ron Phillips, you’ll learn:
The importance of managing your mindset in lifeThe costs of not preparing and communicating your legacy wellHow to ensure your assets do the most good for your family even after you’re goneWhy it’s crucial that your heirs know what you haveThe wealth transfer risks of putting off your estate planningHow to make leaders in business and in your family
Where Legacy Fits In The Bigger Picture
Creating a legacy is the capstone of a life well-lived. It’s the end goal of a life and business you love, and the greatest mission of our lives. But we need an entire financial system to support our ability to do the most good.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund. This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.
Then, you’ll protect your money with privatized banking, insurance, and legal protection.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.
Legacy & Wealth Transfer Risks, Conversation Highlights from Ron Phillips
How Mindset Affects Your Real Estate Deals
Once you figure out how to help others, you’ll begin to reap benefits in your own life. You’ve likely heard, “If you help enough people get what they want, you’ll get what you want.” In practice, you often get 10x that!
(7:40) When Ron’s deal was rejected, he felt destroyed. Yet he woke up the next day, he reflected on what he had learned and studied. He knew as long as he could solve the problem at hand, he could make a worthwhile deal. Then, he ended up launching his career, which has only continued in its success.
(10:05) Real estate, life business, relationships—everything throws wrenches into your world. Nothing goes the way it’s supposed to, all the time. You have two choices in how you proceed. You can think that the world is against you, and that you can’t win, or you can figure out a way through it.
Ron’s Real Estate Business
(12:38) Until 2005, Ron was in the business of rehabbing houses, until HUD changed the guidelines. So he “went out of business” virtually overnight. He essentially became a landlord, though it was not his goal. So Ron adapted.
What he discovered was, many people don’t want to be landlords (much like himself). Though they do have an interest in real estate. Ron had the teams and the know-how, and now he helps other people find success when they lack the right resources. This started before turnkey operators were really a thing. However Ron resists the urge to describe his business as a turnkey operation.
(20:20) … people think when something is turnkey that they ...
We frequently discuss high cash value life insurance here at the Money Advantage, yet with the financial uncertainties of COVID-19, how safe are life insurance companies?
https://www.youtube.com/watch?v=j9TZZf6hYjY
How strong is the life insurance industry really? What impacts do today's low-interest rates, economic turmoil, and the pandemic have on my long-term growth rates and the policy guarantees? How do they affect the life insurance industry as a whole? Do insurance companies have enough reserves to weather low returns and higher costs? Are they able to maintain their guarantees? Are they still a safe place to put money?
If you want to see how low interest, low bond yields, and higher mortality can impact you as a policy owner, know if you can trust whole life guarantees for cash value and death benefit, and find out how strong this nearly indestructible industry is during unprecedented times, so you can know what to do, tune in now!
In this episode on the safety of life insurance companies, you'll learn:
How interest rates and bonds affect the life insurance industryWhy the US is better off right now than you'd thinkA brief history of the life insurance industryThe "checks and balances" of mutual insurance companiesAnd why COVID isn't impacting the industry as much as you'd expect
Right now, many financial products and systems are in flux. That uncertainty may not instill confidence in your financial future. COVID-19 has certainly impacted the financial sphere, so let's unpack what that means for life insurance.
The life insurance industry has long been a pillar of certainty and financial stability, and fortunately, we have high hopes that this will continue to be the case. Historically, these companies have outlasted even the toughest of financial straits.
Table of contentsThe Safety of Life Insurance Companies is a Part of the Bigger Picture of Creating WealthHow Safe Are Life Insurance Companies Facing Internal Challenges?The History of the Life Insurance IndustryLow Interest RatesBond Yields Follow Interest RatesMutual Companies Are Positioned for the Long-GameMortality Isn't a Current ConcernSo How Safe Are Life Insurance Companies? Resources to Evaluate the Financial Safety of Life Insurance CompaniesReady to Start Your Life Insurance?
The Safety of Life Insurance Companies is a Part of the Bigger Picture of Creating Wealth
While the safety of the industry is a critical piece of protecting and preserving your wealth, it’s just one small piece of the bigger journey to creating time and money freedom.
That’s why we’ve developed the 3-step Cash Flow System. It’s your roadmap to go from just surviving, to a life of significance, purpose, and financial freedom.
The first stage is the foundation. You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable.
Then, you protect your money with insurance and legal protection and Privatized Banking.
Finally, you put your money to work, increasing your income with cash-flowing assets.
How Safe Are Life Insurance Companies Facing Internal Challenges?
Many of the current concerns around whole life insurance relate to the low interest, low bond yields, and low internal growth we're seeing right now. We don't blame people for translating this slow-down as a warning sign. In addition, there's a possibility of higher claims in a pandemic—and will the companies have enough capital to weather that storm?
If you're considering the impact of these factors on your life insurance policies, you're on the right track. It's important to stay ahead of the curve for your financial well-being. So, let's look into some of these concerns and find the truth in these statements.
The History of the Life Insurance Industry
Fortunately for policyholders, the life insurance industry has a long history of navigating tumultuous financial times. Historically,
https://www.youtube.com/watch?v=_KcOV9DhFkE
Considering estate planning, but not sure how to make it work best for your family? Wondering how to balance your unique age, stage, personalities, and goals? Does estate planning feel constrictive, or your ambitions seem bigger than what you can accommodate with a finite plan? Do you wonder how you could possibly know what’s best 30 years from now when you’re not sure who your children will become?
Today, we want to help you wrestle the giant octopus of long-range planning. Bruce and I are talking with my estate planning attorney, Stephen Haynes, about solving special considerations with your estate plan.
And this will be a special treat! We're not just going to talk theory about estate planning. We're inviting you in and showing a sneak peek into how we created an estate plan for our family.
So if you want to recognize the pros and cons of various estate transfer strategies, achieve the best balance of asset protection, creditor protection, control, and ownership, and find out how to design your estate plan to solve your needs best so you can strengthen your family with how you pass on wealth, instead of causing future challenges, tune in now!
In This Conversation about Custom-Designed Estate Planning with Stephen Haynes
400800800
Deciding how to transfer trust assets to children in a way that provides for their needs and helps them become empowered and not entitled.Solving the tension of gifting assets outright vs. in trust, and why you may consider one over the other.How to achieve the balance of asset protection and creditor protection with control and ownership, and reduce the risk of estate taxes.The role of the trustee, the goal of the trust to be a relationship, how to select a trustee, and how to set up your children to have a good relationship with the trustee.Hear how we're solving the potential problem of children seeing that a trustee is trying to keep them from their money.Finding the middle ground between leaving direct guidance to the trustee with rigid wishes vs. leaving discretion to the trustee.How to direct your money to be used the way you want, while also providing for the freedom and flourishing of each individual in generations beyond you.How you can use life insurance to create perpetual, generational wealth.
Where Estate Planning Fits into Your Cashflow Creation System
Encircling your family and assets with a bulletproof estate plan will maximize your peace of mind. But it’s just one small step of a greater journey.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund. This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.
Then, you’ll protect your money with savings, privatized banking and legal protection. This is where estate planning fits in. You’ll know that no matter what happens to you, your wishes will be carried out, your assets will remain intact, and your wisdom will empower generations after you.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.
Take Action to Begin Your Family Legacy Today
Take the next steps today.
As Bruce says, "Make small steps, but quality steps."
You don't have to leap the whole chasm all at once.
Today's small step may look like taking a minute to write down what's important to you. This may become the start of your personal values or vision statement.
Or, if you are ready for a conversation about your estate planning or life insurance, your next step could be scheduling a conversation.
Find Out More About Stephen Haynes
Would you like to see a Family Bank in action? Today, Bruce and I talk with our friend and colleague, John Moriarty, Founder and President of e3 ConsultantsGROUP. You'll hear about his personal and business use of Infinite Banking, and the thinking behind a growing and evolving system of policies. John is smart, business savvy, and a leader who walks the talk of thinking differently with his finances. And it’s paying dividends – literally!
https://www.youtube.com/watch?v=lNuuPfHW6Jg
We invite you behind the scenes in this conversation with an entrepreneur who is using and loving their system of whole life insurance policies for the past 11 years.
You'll find out exactly how and why this wealth creator is funding and using cash value life insurance on the regular. And you'll witness the opportunity created by this method of cash flow management so you can use family banking to store cash reserves. Tune in now!
Table of contentsIn This Episode On Family Banks with Cash Value Life Insurance, You'll Find Out:Where A Family Bank Fits into Your Cash Flow SystemFamily Bank (Behind the Scenes)Breaking into FinanceThe Stock Market AppealA Family Bank PaysInfinite WealthMindset and Money HabitsDon't Fear LoansAbout John MoriartyTake the Next Step with Family BankingBook A Strategy Call
In This Episode On Family Banks with Cash Value Life Insurance, You'll Find Out:
Why people with good money habits are frustrated and feel forced into the stock market. And the solution to your problem!Why understanding the purpose of your money is more important than learning how a financial product works.How a Family Bank optimizes your economy, gets your money doing multiple jobs, and reduces your opportunity costs.A look at the most important component of Privatized Banking: how you want to use your money.What this wealth creator is investing in, and why.
Where A Family Bank Fits into Your Cash Flow System
A Family Bank Strategy with Specially Designed Life Insurance Contracts (SDLIC) is just one step in the greater Cash Flow System.
It fits into Stage 2, a part of keeping and protecting your money.
We said before that Privatized Banking is like the peanut butter to your cash flow sandwich. It’s wedged between Stage 1 – keeping more of the money you already make – and Stage 3 – increasing your cash flow from investments.
And it helps you do everything else better. Privatized Banking increases your financial efficiency, enables you to keep more of what you already make, amplifies your cash-flowing asset strategy, and accelerates your time and money freedom.
Privatized Banking is the how of keeping and protecting your money. And specially designed life insurance is the what.
Family Bank (Behind the Scenes)
As an entrepreneur with several businesses, privatized family banking strategies are a generous part of John Moriarty’s practice—personally and business-wise.
5:20 “I wouldn’t call myself a visionary…I’m blessed, in that I find myself surrounded by really smart people in a lot of instances. And I gravitate to those types of people. What I try to do is basically garner as much knowledge from them as possible, figure out ways to give back to them, and then take what might seem like complicated processes and try to simplify them…When I see something that works, I don’t deviate from it…and if there are ways to improve that process, absolutely.”
One of the foundational missions of John’s business is to awaken the entrepreneur within and teach these foundational strategies. A Family bank is a way to have your money working for you in more than one place.
Breaking into Finance
John's pivotal shift into the world of finance happened in college. He realized that he likely wouldn’t be continuing to play baseball and set his sights elsewhere. So he began an internship in the financial sphere.
He spent the first eight years of this career path supporting other advisors,
Today, we’re talking with Andrew Weinhaus about why you need an estate plan. He's an attorney who has worked in estate planning for 30 years. That means he knows it like the back of his hand. So, you get the tremendous value of hearing about estate planning in a way that's relatable, plain and simple!
https://www.youtube.com/watch?v=xvoTfp63rT4
Do you wonder what happens to all of your stuff when you die? Have you heard of estate planning, but are not really sure what it is and whether it’s for you?
No need to share your answers, but ... pssst ... this episode is for you! Here’s a sneak peek into estate planning from a distance. It's like browsing, but without the annoying sales clerk asking if you’ve found everything you didn’t even know what you were looking for in the first place.
You can dip your toe in to find out if it’s really as scary and overwhelming as you thought. I promise, you’ll feel less out of place and more at home in the estate planning conversation. So, whenever and however you decide to move ahead, you'll feel better about those uncomfortable conversations.
This conversation will help you make sense out of the basics. That means you'll know the why and the end goal. Those two things will automatically vacuum out the ambiguity in the process.
So if you want to understand what an estate plan is and does, see how it's relevant to your life to do the long-term planning, and differentiate whether this is an important thing to take action on so you can feel the benefit of planning before you embark on the journey, tune in now!
In this episode on estate planning, you’ll find out:
The two main reasons you need an estate plan: if you can't make decisions, and if you die.The four reasons you want to avoid probate: cost, time-intensity, publicity, and creditor rights.Why you might want to pay for your parents' estate planning.The basic components of an estate plan and what they do: a medical directive, a power of attorney, a revocable living trust, and a pour-over will.The cost of an estate plan is often much less than the cost of probate. The difference is whether you pay a fixed, known cost now, with an attorney who is a trusted advisor, or a potentially much higher cost later with an attorney you can't choose.Concerns with real estate, businesses, and investments without an estate plan.How life insurance is the perfect equalizer to allow you to transfer family assets without having to liquidate.Why titling your assets correctly is one of the most critical steps of estate planning that most people miss.Why estate planning spells out exactly what you want to happen.How to plan for the care and financial needs of minor children.Why your estate plan can never be perfect and how to get it done anyway.
Where Estate Planning Fits into Your Cashflow Creation System
Encircling your family and assets with a bulletproof estate plan will maximize your peace of mind. But it’s just one small step of a greater journey.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund. This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.
Then, you’ll protect your money with savings, privatized banking and legal protection. This is where estate planning fits in. You’ll know that no matter what happens to you, your wishes will be carried out, your assets will remain intact, and your wisdom will empower generations after you.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.
Who is Estate Planning Attorney Andrew Weinhaus?
Andrew Weinhaus is the managing member of The Law O...
Do you want extraordinary relationships with your kids? Are you longing to build a family that’s strong and enduring, living life on purpose? Building family wealth is so much more than being a family with a lot of money.
https://www.youtube.com/watch?v=Bb-QZAHc-uA
So, if you aspire to do the most for your family, start with the building blocks. Family wealth is strong family relationships that start with flourishing individuals, combined with practicing the fundamentals of wealth creation. To get that, you have to know personally how you best provide value and contribute to others, and then instill that awareness and way of life into your kids. Those might seem like tall orders, but it is possible, and we'll show you how.
Here to discuss the principles that drive family wealth is a family who is right in the middle of doing this - extraordinarily. In this episode, we’re talking with Jon and Missy Butcher, creators of LifeBook, who are living out their ideal life, by design – and we’re discussing how to build exceptional family wealth.
So if you want to create the most positive and fulfilling family relationships, develop family strength that lasts for generations, and build family wealth that's more than money so you can carve out your family legacy, tune in now!
In This Episode on Building Family Wealth, You'll Discover:
Why core family values are so important for your home, and the four questions you need to ask yourself to discover them.The fundamental truth of all wealth creation.The difference between wealth and money.The three core values of this exceptional family.How to help your kids make money.How to transform your own life, so you can transform your family relationships ... and grow family wealth.Why consciousness is a process of self-discovery and self-creation.
Where Building Family Wealth Fits In The Bigger Picture
Building family wealth and creating a legacy is the capstone of a life well-lived. It’s the end goal of a life and business you love, and the greatest mission of our lives. But we need an entire financial system to support our ability to do the most good.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund. This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.
Then, you’ll protect your money with privatized banking, insurance, and legal protection.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.
Who Are Jon and Missy Butcher?
Jon and Missy Butcher created a life most people might call impossible. They have founded 19 impact-driven companies and philanthropic organizations together. They are financially free, enjoy a whirlwind romance, even after decades of marriage, and live in multiple countries a year, including the dream home they are building on a remote Hawaiian island. And they’re grandparents in their fifties - who look and feel a decade or two younger.
Every single aspect of Jon and Missy’s life appears to defy society’s expectations: not because they’re smarter, more gifted, or luckier than anyone else - but because they designed it that way.
Learn more about Jon and Missy's backstory of personal transformation here: LifeBook: Creating An Extraordinary Life.
When Jon and Missy’s life transformed dramatically, their friends and family started asking them for their secret. And so Lifebook was born: first as a series of private retreats, and ultimately as a methodology that anyone can now harness to envision, plan, and achieve their greatest lives.
Today, Jon and Missy’s mission is to spread Lifebook to at least one million peopl...
Not all whole life policies are designed equally. Some that show up better on an illustration actually have a higher risk. Rodney Mogen came back on the show to continue the conversation about life insurance agent commission and whole life policy splits.
https://www.youtube.com/watch?v=I4lq1Ltep2s
We address the “Fear, Uncertainty, and Doubt” in the IBC world around policy splits. We answer questions about illustrations, changing dividends, agent commissions, effects on the death benefit, and policy tax status.
Check out the first conversation here: 10/90 Premium Split & Blended PUA Rider Risks, with Rodney Mogen
Life Insurance Agent Commission
Why are we talking about life insurance agent commission? Because some people think that agents design policies based on how they are compensated. There are agents telling people that a 10/90 premium is the only one right way to design policies. According to them, anything else is just trying to earn a higher commission.
We design policies based on the client's unique situation, versus using a cookie-cutter approach and designing all polices the same. It's important to have an abundance mindset when looking for the best life insurance companies to work with. We believe compensation is a good thing and should be based on the amount of value you receive.
If someone bases their entire agency on the 10/90 split, then they are running their business based on volume. This approach is very similar to Walmart. There is absolutely nothing wrong with serving as many people as possible. The question is, how much value and time do you think you will get from that advisor?
Your agent's commission should be the last thing in the agent's mind and your mind when putting individualized strategies and recommendations in place.
Get Started with Privatized Banking
There is not a one-size-fits all policy design for everyone.
If you would like to find out exactly what policy will best help you accomplish your goals, book a call with our advisor team
We'll get to know you, learn your objectives, and consider your complete financial picture before recommending strategies for your unique situation.
Success leaves clues. Model the successful few, not the crowd, and build a life and business you love.
https://www.youtube.com/watch?v=gB_2RGtp_ts
Will the work you do create a foundation for your kids and grandkids to prosper? Then how do you create long-term complete family wealth that does the most good for as long as possible? How do you make sure the money you make, the business you build, and the real estate and investments you acquire do more than just benefit you during your lifetime? How do you create rich kids, grandkids, and great-grandkids? To answer these questions, we're discussing creating generational family wealth, with Keith Whitaker. Through Wise Counsel Research, he helps families grow into multi-generational enterprises, thriving together, preserving and growing family wealth.
In this episode with Keith Whitaker, you'll discover:
Why wealth is more than money and how to grow all five types of capital.How to develop character so that generations after you will be wealth builders.The three keys of prosperous families who pass on multi-generational legacies of more than money.Easy, doable ways to write down and communicate the purpose of your trust.Why it's essential to have a first-generation mindset.The crucial role of the rising generation to prevent the crumbling and disintegration of family wealth.How to develop your children's character - the habit of choosing wisely.Why individual flourishing is the crux of complete family wealth.
So if you want to create strong and successful families, raise children to be stewards, and know that your money will do the greatest good long after you're gone so you can empower future generations with wealth and wisdom, tune in now!
Where Complete Family Wealth Fits In The Bigger Picture
Building family wealth and creating a legacy is the capstone of a life well-lived. It’s the end goal of a life and business you love, and the greatest mission of our lives. But we need an entire financial system to support our ability to do the most good.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund. This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.
Then, you’ll protect your money with privatized banking, insurance, and legal protection.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.
Complete Family Wealth Conversation Highlights from Keith Whitaker
Avoiding the Pitfalls of Leaving an Inheritance
[3:57] When we talk with family members and family leaders, we ask them what's really on your mind? What's keeping you up at night? You eventually get to the concern, what's this money going to do to my grandchildren and generations after that? Is it going to ruin them? And that's exactly the concern that we try to address.
The Role of Excellence
[5:41] Socrates said, "Wealth doesn't make a person or a city great and powerful and virtuous and excellent. It's excellence or virtue that makes an individual or a city wealthy."
[5:53] In other words, no matter how big your bank account, if you don't have excellence of mind and character, then, in fact, you're going to be poor.
[11:11] Families succeed in passing on complete family wealth, not just money, but also excellence, really do communicate. They communicate about their financial plans, estate plans, and their giving.
The Role of Communication
[11:36] If you're making gifts to your children or grandchildren without communicating about them, behind the scenes or with very little discussion, you're not really making a gift, you're making what we call a transfer. Even worse, these gifts are going to become meteors that blast into people's lives,
https://www.youtube.com/watch?v=p2xDUahEtWc
Do you want to invest in real estate? Do you want it to feel effortless and productive, without getting slowed down, veering off course, and stuck by number-crunching and over-analyzing? In this episode, we discuss real estate investing for women with Monick Halm, the creator of Real Estate Investor Goddesses.
So if you want to be empowered to own your financial future, invest in real estate, and use your own unique gifts as an investor, and not try to invest like someone else, so you can build time and money freedom … tune in now!
In This Episode with Monick Halm About Real Estate Investing, Find Out:
Why women should consider real estate investing as a pathway to financial security and independence.Why operating from the feminine in real estate investing helps women to be far more successful.Why knowing different investing strategies radically empowers you to robocharge your success.
Who Is Monique Halm?
Monick Halm is an educator and advocate for women to create passive income streams through real estate investing.
Her mission is to assist 1 million women to achieve financial freedom through real estate.
She is the founder of Real Estate Investor Goddesses, and is herself a real estate investor and syndicator with over 14 years of real estate investing experience in multi-family, mobile home and RV parks, flipping, commercial, vacation rentals, and ground-up development.
Together with her husband and her investors, she owns over 1300 rental units across 6 states.
She is the #1 bestselling author of The Real Estate Investor Goddess Handbook and Wealth for Women: Conversations with the Team That Creates the Dream, and host of the Real Estate Investor Goddesses Podcast.
She is also a Real Estate Strategy Mentor, keynote speaker, recovering attorney, certified interior designer, Feng Shui expert, avid world traveler, wife, and mother of three amazing kids.
Learn More About Monick Halm and Real Estate Investor Goddesses
Visit Real Estate Investor Goddesses to findReal Estate Investing Guide From $1 to $1 MillionHow to Get Started in Real Estate Investing Even As A Busy Professional Woman WebinarThe Real Estate Investor Goddesses PodcastThe Real Estate Investor Goddesses Investor ClubThe Virtual Wealth Through Real Estate EventThe Real Estate Investor Goddess HandbookWealth for Women: Conversations with the Team that Creates the Dream
Want to Boost Investment Returns with Privatized Banking?
Find out the exact Privatized Banking strategies our clients are using to build investment capital, create financial stability, boost investment returns, forge a legacy, and design your financial freedom.
To discuss your life insurance strategy, or implement Infinite Banking, alternative investments, or passive cash flow strategies to keep more of the money you make, book your strategy call with The Money Advantage advisors today.
Thanks for Tuning In!
Thanks so much for being with us this week. Have some feedback you’d like to share? Please leave a note in the comments section below!
Don’t forget to subscribe to the show to get automatic episode updates for The Money Advantage podcast!
And, finally, please take a minute to leave us an honest review and rating on Apple Podcasts. They really help us out when it comes to the ranking of the show. And I make it a point to read every single one of the reviews we get.
Thanks for listening!
Did you know there’s a secret hiding in plain sight that average rates of return will never tell you? In this episode, we’ll discuss Sequence of Returns and the risk they pose to your future income. Then, we'll show you exactly how to minimize the risk.
https://www.youtube.com/watch?v=cq72TYq1zK4
So if you want to get predictable income from an unpredictable investment portfolio, NOT run out of money, and see exactly why you should supplement your investments with non-correlated assets … all so you can plan ahead and not be stressed with figuring out retirement income when it’s too late, tune in now!
To understand the giant risk posed by the sequence of returns, let's lay a quick foundation.
Table of contentsWhere Does Investing Fit in the Cash Flow System?The Lie in Average Rates of ReturnThe Order of Returns MattersTaking Income After Losses Is A Giant MistakeWhy Sequence of Returns is a RiskNon-Correlated Assets to the Rescue!So Here's How to Minimize Sequence of Return RiskGet Whole Life Insurance Today
Where Does Investing Fit in the Cash Flow System?
Investing is just one step in the path to time and money freedom.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It’s your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking.
Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
The Lie in Average Rates of Return
Investment performance is often measured by the average rate of return.
What is an average? It's simply all the returns over a period, divided by the number of years.
But the average rate of return often doesn't even come close to mapping onto our actual experience. In fact, positive averages don't even mean you'll come out ahead on the money you put in.
Why?
In this article, I highlight the disparity between the average vs. real rate of return.
Here's the main reason that averages don't even come close to telling the whole story:
Negatives have a much greater impact on your account balance than corresponding positive returns.
For instance, if you lose 20% on $100K, you would have $80K. To recover your loss, you wouldn't just need a 20% gain. That would only get you to $96K. It would take a 25% gain, a value greater than the percentage of loss, to bring your balance back to $100K.
With that out of the way, there's another deception that lies in average returns.
Negative 20%, plus a positive 25% lands you at a total return of 5%. Divide that by 2 years, and you get an average of 2.5% return per year. But your experience gave you a 0% actual return over those two years.
So, saying you had a 2.5% average return gives a misleading impression that you're increasing your account balance with growth.
But it gets worse.
The Order of Returns Matters
Not only do losses make a huge impact in account value, so does their timing.
That's because early losses shrink your portfolio and make it very difficult to recover.
Late losses don't do as much damage. Instead, they skim a little off the top of a more substantial account.
Taking Income After Losses Is A Giant Mistake
If you're using your investment account for income after a year of losses, you further depress account values.
Imagine you were taking 4% from your investment account per year as income.
If your returns are -20%, your 4% withdrawal amplifies the negative to a 24% loss.
In fact, you may need to increase your withdrawal percentage to get sufficient income, further worsening the outlook and handicapping your future performance.
To see exactly how these risks affect you, let's compare the outcomes of two identical investment po...
If you want to create a legacy of wealth, the starting point is a strong culture of family values. That's because having the greatest impact and doing the most for your children hinge on their character and self-leadership. And their character and self-leadership depend on yours - your example, your relationship, and your communication.
https://www.youtube.com/watch?v=VAuWpCdeqrA
So how do you model and teach the values necessary for your children to be successful? How do you build bonds that strengthen and unify your family over generations? Then, how can you fortify against the torrent of evils like regret, pain, and resentment that rip families apart? What can you do to prevent everything you've spent your life building from being crumbled away or used up?
If you want to strengthen and anchor your family, you need a value system that stands through generations.
Today, we're talking about the importance of family values, instilling those in kids, posting your family values at home on the wall, and spending more serious time on the topic as a family unit.
Richard Wilson, CEO of the Family Office Club, is coming back to join us for this conversation. Because of his work with ultra-high net worth families, he sees what works and what breaks when it comes to family wealth. You'll see exactly why family values are pivotal to your long-term impact.
You can find his first interview, The Family Office Model: Investing Like the Wealthy, here.
In This Show About Family Values, You'll Discover:
Why family values are more important than family wealth.Why family values are central to living well and creating the greatest impact and legacy.How writing down and posting your family values improves family culture.The surprising trick to remembering your values and brainwashing yourself so you can become the best version of you.How individual, marital, family, and business values are connected.The personal family values list of a leader in family wealth to get you thinking about your own values.
Where Family Values Fit In The Bigger Picture
Family values are a part of your family guidance system when building family wealth. Creating and leaving a legacy is the capstone of a life well-lived. It’s the end goal of a life and business you love, and the greatest mission of our lives. But we need an entire financial system to support our ability to do the most good.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund. This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.
Then, you’ll protect your money with privatized banking, insurance, and legal protection.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.
About Richard Wilson
Richard is a third-generation Eagle Scout, husband and father of 3 living on the island of Key Biscayne, near Miami, Florida. He is the CEO & Founder of the Family Office Club, the #1 largest association of over 2,000 registered ultra-wealthy families and their family offices. Richard also represents 77 investors with an average net worth of $22M through his RIA Centimillionaire Advisors, LLC and the PrivateEquity.com investor portal – where he helps clients access top screened direct investments coming through his investor club.
Richard has written three #1 bestseller family office books on Single Family Offices, How to Start a Family Office, and Centimillionaires ($100M+ net worth families). The Family Office Club has the most listened to podcast and most-watched YouTube Channel in the family office industry and most visited website.
https://www.youtube.com/watch?v=uvUp3vuKYjA
Do you want to leave a legacy with an estate plan that transfers wealth and empowers the next generation? Find someone who is helping others do it successfully. And that means tailoring a customized, bespoke plan specifically to your family. Today we're talking with highly recognized estate planning attorney, Andrew Howell, about the principles and wisdom he's distilled from working with ultra-high net worth families and business owners.
So if you want to know how to entrust wealth to future generations, provide for unity in the family, and leave a legacy of wisdom and opportunity so you can create an estate plan that transcends generations, tune in now!
In this episode about estate planning to bridge generations, you'll discover:
Why traditional estate planning fails at increasing family wealth and promoting character development.How the core of the Entrusted model of estate planning is about meaningful relationships.How to transfer wealth in a way that incentivizes work and stewardship instead of producing entitlement.The top 3 eroding effects on generational wealth.Why traditional estate planning that divides assets limits your family's ability to make an impact.Why leaving your money to charity creates a lost opportunity for your family.How to set up your family wealth as a bank to create opportunity, entrepreneurship, and accountability.Why the first priority to leaving a legacy is to know who you are as individuals and a family.
Where Estate Planning Fits into Your Cashflow Creation System
Encircling your family and assets with a bulletproof estate plan will maximize your peace of mind. But it’s just one small step of a greater journey.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund. This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.
Then, you’ll protect your money with savings, privatized banking and legal protection. This is where estate planning fits in. You’ll know that no matter what happens to you, your wishes will be carried out, your assets will remain intact, and your wisdom will empower generations after you.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.
About Andrew Howell
Andrew L. Howell is a Co-Founder of the Salt Lake City law firm York Howell & Guymon. His focus is on estate planning, asset protection planning, probate and estate administration, charitable giving, sophisticated business structuring and transactions, and tax planning. Additionally, he is passionate about, and regularly assists clients with, family legacy planning, stock and asset sales and purchases, buy-sell and shareholder agreements, and business buy-out and business succession planning. Mr. Howell’s practice has a specific focus on ultra-high net worth families and business owners.
Mr. Howell is a leader at the forefront of responding to the industry-wide shift in estate planning resulting from client demand for a more holistic approach to wealth transfer. He assists his ultra- high net worth clientele in creating dynamic estate plans, focusing on what they can do to increase harmony and purpose in their planning. Mr. Howell is the co-author of Entrusted: Building a Legacy That Lasts, which features seven core disciplines of successful wealth transfer of high-net-worth families going back hundreds of years, as well as Riveted: 44 Values That Change the World.
Andrew Howell is routinely recognized as a Mountain States Top Lawyer and was credited by Salt Lake Magazine as a Rising Star on the Mountain States Super Lawyers List...
https://www.youtube.com/watch?v=AO7Y3RkLaFI
Want to get the most income later in life? Your success depends not on one product, but the coordination of financial tools and your entire personal financial system. Whether your focus is on acquiring cash-flowing assets or you have a more typical investment portfolio, whole life insurance and annuities can play a critical role. That's why we’re talking with Dr. Wade Pfau, a widely-recognized expert on income strategies with whole life insurance.
So if you want to get the most income during retirement, have the greatest chance of not running out of money, leave the greatest legacy, and see why the higher premium of whole life is worth it over "buying term and investing the difference", tune in now!
In this episode, you'll find out:
Why the typical approach to retirement planning leaves so many in scarcity with the possibility of running out of money.How an integrated strategy using life insurance products with an investment portfolio provides more income during retirement.3 ways whole life insurance is more than an income replacement that's no longer needed after retirement.Why a financial strategy that includes whole life outperforms “buying term and investing the difference.”How you can spend more during retirement and pass on a bigger legacy.How whole life insurance and annuities provide an “actuarial bond” environment to replace traditional bonds in the typical asset allocation. This divides the functions of growth and income into separate assets, and give you more growth and more income.Why life insurance that uses bonds is better than buying bonds directly.How to preserve your investment portfolio and minimize the sequence of return risk, giving you more income during later years.
About Dr. Wade Pfau
Wade D. Pfau, Ph.D., CFA, RICP, is the curriculum director of the Retirement Income Certified Professional designation and a Professor of Retirement Income at The American College of Financial Services in King of Prussia, PA.
He is also a Principal and Director for McLean Asset Management.
Dr. Pfau holds a doctorate in economics from Princeton University and publishes frequently in a wide variety of academic and practitioner research journals on topics related to retirement income.
He hosts the Retirement Researcher website, and is a contributor to Forbes, Advisor Perspectives, Journal of Financial Planning, and an Expert Panelist for the Wall Street Journal.
Dr. Pfau is the author of several books on retirement income strategies.
Dr. Wade Pfau Links and Mentions
RetirementResearcher.comSafety-First Retirement Planning: An Integrated Approach for a Worry-Free RetirementHow Much Can I Spend in Retirement? A Guide to Investment-Based Retirement Income StrategiesReverse Mortgages: How to Use Reverse Mortgages to Secure Your Retirement
Find Out Your Next Step to Time and Money Freedom
If you would like to assess your complete financial picture and find your personal best strategy to maximize your cash flow and control, we can help.
By the way, we have a free Quick and Easy Privatized Banking Guide that outlines just how Privatized Banking gives you the most powerful storage tank for your cash, PLUS it boosts investment returns, so you can more quickly get to the point where you never run out of cash.
If you are ready to personally implement Privatized Banking, alternative investments, or cash flow strategies to keep more of the money you make, book your strategy call with The Money Advantage advisors today.
Thanks for Tuning In!
Thanks so much for being with us this week. Have some feedback you’d like to share? Please leave a note in the comments section below!
Don’t forget to subscribe to the show to get automatic episode updates for The Money Advantage podcast!
And, finally, if you like these conversations about building time and money freedom, please rate and review our show on Apple Podcasts to help ...
Do you want to leave a legacy for future generations to come, but worry about the gift corrupting them? Are you hoping to pass on meaning even more than the money itself? Do you wonder how to start the conversation? Do you worry if family dynamics will prevent you from communicating your points clearly and in a way that will be received and understood?
https://www.youtube.com/watch?v=xH3B2d53bVg
Today, we're bringing Tom Michler into the conversation. As a psychologist, he's helped families navigate the multi-generational conversation about financial planning. In addition to transferring financial assets from one generation to another.
If you want to give a gift or legacy to the next generation, not just transfer money, to have it do the most good in and through them, and to have healthy communication in the family so you can create a deeply-connected family AND long-lasting wealth, tune in now!
In this episode about the conversation between generations, you'll discover:
Dynamics of multi-generational conversations about the transfer of wealth.How to get rid of regret.Why the transfer of wealth needs a conversation between the giver and receiver about what it means, and how without it, the wealth supply becomes depleted.The difference between a wealth transfer and a gift.How to shift into functional and healthy dialogue about money.How a generational belief system becomes accepted and adopted, and how to remove your blockages to money.
Where Generational Conversations Fit In The Bigger Picture
Building family wealth and creating a legacy is the capstone of a life well-lived. It’s the end goal of a life and business you love, and the greatest mission of our lives. But we need an entire financial system to support our ability to do the most good.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund. This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.
Then, you’ll protect your money with privatized banking, insurance, and legal protection.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.
About Tom Michler
Tom Michler is a Licensed Professional Counselor with over 25 years of experience. He works as an Organizational Development Consultant and Professional Facilitator. The consistent theme in Tom's career is working with groups of people from all walks of life. Tom's work also includes working with an adult homeless population (Peter and Paul Community), sexual offenders, (Vianney Renewal Center) refugee children/families (New Dimensions Soccer), and homeless teenagers (Covenant House).
Tom's specialty as a counselor is Family Counseling. Tom is also a Certified Energy Medicine practitioner. An interest in metaphysical concepts has evolved Tom’s business toward the facilitation of what is known as The Law of Attraction. For instance, this is for clients looking to maximize their life experience.
As an OD consultant, Tom has worked with numerous organizations in the areas of Mission/Vision development and delivery. In addition, hiring practices, leadership development, group facilitation and communication skills. Tom brings an understanding from the field of science as related to the quickly evolving field of energy and Conscious Awareness.
Tom's professional facilitation experience includes working with the St. Louis Archdiocese in regards to parish mergers, hosting teleseminars, working with numerous groups of area grade school and high school Principals, and was the host of his own radio show from 2011-2013, entitled Mind Games: The Psychology of Performance.
Have you considered investing offshore, or even becoming an expat and living abroad? Today, we’re talking with Mikkel Thorup, of The Escape Artist, about how to have more travel, freedom, and control.
https://www.youtube.com/watch?v=9Ju5Jyt4zEU
So if you want to travel and live overseas, invest internationally, shrink taxes and grow your wealth, tune in now!
In this episode, you'll discover:
Why living abroad is easier and more attainable than you may think.How to work in another country to fund your travel - stories from experience with international travel and work visas.How curiosity and an obsession to understand the world fueled nearly 20 years of continuous travel.What to think about before becoming an expat.Why diversify your investments geographically, politically, across currency, and across time.
Who Is Mikkel Thorup?
Mikkel Thorup is an expert in expat living and investing offshore.
He's the Best Selling author of Expat Secrets: How To Pay Zero Taxes, Live Overseas & Make Giant Piles Of Money.
Mikkel has spent nearly 20 years in continual travel around the world. He's visited more than 100 countries, including Colombia, North Korea, Zimbabwe and Iran. He's lived as an Expat since early 2000's, making his home in Central America, South Pacific, Asia, the Arctic, and North America, as well as the Middle East.
Throughout his explorations, Mikkel Thorup has kept a keen eye on different investments and businesses. Putting money where his mouth is and finding some very interesting and often very different opportunities.
Mikkel Thorup believes people should understand that just because someone was born in one country it doesn't mean that they need to spend their entire lives there, and it certainly doesn't mean they need to keep their money and investments there. Often there are huge tax advantages and economic benefits to building your business and wealth abroad.
A high school dropout, Mikkel started failing out of school at 12 and completely left school by 15 years old. But he never gave up his passion for learning. Now, he still enjoys reading over 100 books a year on topics such as entrepreneurship, marketing, economics, and investing.
Mikkel is a firm believer in continual education and chooses to reinvest a large portion of his income back into himself through courses, training and coaching every year.
He has made it his mission to serve others and constantly gives back to the community by sharing his knowledge in Entrepreneurship with the hopes of impacting others in a positive manner.
Learn More About Expat Living and Offshore Investing with Mikkel Thorup
If you'd like to learn about offshore bank accounts, offshore companies, and offshore trusts, or explore residency, visas, second passports, buying property or working in another country, or even learning another language, follow Mikkel's work.
Check out EscapeArtist.com.
Listen to The Expat Money Show here.
Get his book, Expat Secrets: How To Pay Zero Taxes, Live Overseas & Make Giant Piles Of Money.
Check out the Offshore Escape 2020 Summit.
Want to Talk About Life Insurance?
To discuss your life insurance strategy, or implement Infinite Banking, alternative investments, or passive cash flow strategies to keep more of the money you make, book your strategy call with The Money Advantage advisors today.
Thanks for Tuning In!
Thanks so much for being with us this week. Have some feedback you’d like to share? Please leave a note in the comments section below!
Don’t forget to subscribe to the show to get automatic episode updates for The Money Advantage podcast!
And, finally, please take a minute to leave us an honest review and rating on Apple Podcasts. They really help us out when it comes to the ranking of the show. And I make it a point to read every single one of the reviews we get.
Thanks for listening!
https://youtu.be/FtpKs0X1SFs
Considering a 10/90 premium split (Base/PUA) policy design with a Blended Term PUA Rider for an IBC policy over a design truer to Nelson Nash's original 33/67 split? Was it because someone showed you that you can get more cash value in Year 1? Or an earlier break-even point, and still outperform the cash value by Year 30?
Unfortunately, this newest fad design hurts clients who want the best place to store cash and build investible capital. When you're looking for answers, it can be really hard to sort through what's best. And to separate what’s marketing vs. what’s true education.
We strive for simplicity but accuracy, disclosing without being confusing, breaking down without misleading. That's because our ultimate goal is empowering you to make decisions.
It's tough to make decisions through all this marketing noise. Because it takes your attention off of what really matters: control.
Today, Bruce and I are talking with MassMutual Brokerage Manager, Rodney Mogen about the risks of a stripped-down 10/90 premium split design.
10/90 Premium Split & Blended Term PUA Rider
We’ll discuss IBC policy design, the blended Term PUA rider, base/PUA premium split, and ideal whole life policy structure and answer:
What are the risks of a policy with too much PUA premium?What is a MEC, and why do you want to avoid it?Why is a Blended Term PUA Rider used with a 10/90 premium split design and how does it increase your risk as a policy owner?Why and how do you give up long-term dividend growth when you have minimal base design?Policy illustrations and marketing vs. actual policy performance.The difference between long-term policy performance vs. short-term cash value.The trend of companies that kept their dividends high over the last decade, now lowering dividends.
So, if you want to get the best Infinite Banking policy, maximize early access to cash value, and get the most guarantees and growth so you can maximize the use of every dollar towards creating time and money freedom, tune in now!
Where The Infinite Banking Concept Fits In The Bigger Picture
The Infinite Banking Concept is just one step in the greater Cash Flow System.
It’s the peanut butter to your cash flow sandwich.
While it’s nestled into Stage 2, Protection, it also improves everything else around it. Infinite Banking helps you keep more of the money you make in Stage 1, amplify your cash-flowing asset strategy in Stage 3, and accelerate your time and money freedom.
The Bottom Line About IBC and Premium Split
Nelson Nash, the Father of the Infinite Banking Concept, warned against people using the concept as a sales tool with improper policy design. No one should be nervous about IBC; they should be worried about policies that stray off course and take on risk.
Insurance is a risk transfer product.
The entire reason for using Whole Life Insurance over UL, IUL, VUL, EIUL, etc. is the safety and guarantees. So why would you add a rider that lacks guarantees?
Policies with too little base and Blended Term PUA riders are taking on more risk than is necessary. If you go the route of 10/90 premium split and Blended Term PUA’s, you are sacrificing safety and guarantees for a few extra thousand dollars in cash value today.
Stick with a ‘Pure’ PUA rider and a proper amount of base premium, and you can sleep well at night.
The safer approach will provide more certainty over a much longer time horizon and wider range of possibilities. Your cash value is supposed to be your safe tank to store cash in between the deals/investments you make outside your policy.
In general, the ideal funding ratio for a specially designed life insurance policy (IBC approved) is 33% base premium, to 67% PUA. This design gives you access to cash early, without compromising the ability for the policy to grow.
About Rodney Mogen
Rodney Mogen is a 20+ year veteran in the financial industry.
https://www.youtube.com/watch?v=RlydBGujc2k
Do you have money in a retirement account that you wish you could use to invest in real estate? Today, we’re talking about self-directed accounts and investment strategies, with Edwin Kelly, the CEO of Specialized Trust Company.
So, if you want to know how to best use qualified plan money to help you reach your financial goals and invest in real estate, figure out if you should continue funding self-directed IRAs, and maximize the ability to use your money and minimize taxes so you can best use every dollar towards creating time and money freedom, tune in now!
Who Is Edwin Kelly?
Edwin Kelly is America’s leading expert on Self Directed Retirement accounts and self-directed investment strategies. He has more than 24 years of experience in the Financial Services Industry. He worked for such notable companies like UBS and BISYS. Edwin is a Founder and currently serves as CEO of Specialized Trust Company.
Prior to founding Specialized Trust Company, Edwin helped grow one of the largest Self-Directed IRA Custodians in the industry.
Edwin is an avid educator. He adds value to clientele by developing significant knowledge assets at every company he has worked with. His passion for helping others learn about their Self-Directed IRA options has made Edwin a popular and engaging speaker. He is frequently invited to speak at seminars and workshops, in webinars, and as a radio guest. Edwin has made several special appearances on the Money Show, and his work and ideas have been featured in major national magazines and newspapers throughout the United States.
Topics he is frequently asked to speak about include:
What the average person can do to take charge of their finances so they can stop worrying about money and look forward to a comfortable retirement.Little-known investment strategies that have helped people retire sooner than they expected.Completely legal secrets to growing wealth tax-free.
Specialized Trust Company is a member of RITA (The Retirement Trust Association). Edwin attended The Ohio State University and holds an MBA from Franklin University. He is the co-author of the bestselling book Leverage Your IRA. He is currently writing his next two books: The Retirement Dilemma and 7 Specialized Strategies You Can Implement to Solve It, as well as The Shift.
Self-Directed Account Topics Covered:
The basic difference between plain vanilla qualified plans and self-directed retirement plans.How self-directed accounts provide a way to invest money inside a 401(k), 403(b), IRA, TSP, 529, Solo 401(k), SEP IRA, or Simple IRA into alternative investments like real estate, notes, precious metals, bitcoin, etc.Self-directed IRAs can be tax deferred or tax-free.Three steps to self-directing.The difference between tax deferral and tax free accounts.The types of alternative assets you can invest in with a self-directed account.Why you want to keep all self-directed investments at arms length to avoid self-dealing.When you would want to invest in real estate inside a self-directed IRA, and when you would want to invest in real estate outside a self-directed IRA.
Self-Directed IRA Top Takeaways:
Self-directed accounts are government-sponsored plans. If you use them, you have to play by the government's rules.If you defer a tax, you lose control because you postpone taxes to an unknown future tax environment.When deciding whether to invest in real estate inside or outside of a self-directed plan, you need to consider your goals. You can invest for appreciation inside a self-directed plan, but not for cash flow. That's because, inside a self-directed plan, you cannot depreciate real estate and you cannot personally receive the real estate cash flow. However, at the sale of the property, all income goes back into the self-directed account and you avoid capital gains taxes. So if you are investing for cash flow today to increase your net investible...
https://www.youtube.com/watch?v=_gXkzuxoWaQ
Are you looking for unconventional ways to get out of student loan debt? Today, I’m talking with Stephanie Bousley, millennial debtor-turned-success story and author of Buy the Avocado Toast, about how she's creatively tackling $289K of student loans. (Hint: it wasn’t with mainstream advice.)
So if you want to pay off student loan debt, build faith in yourself, and crush the feeling of failure and guilt that comes with debt so you can live the life of your dreams, tune in now!
In this Episode, You'll Discover:
Why the mainstream advice about paying off debt never resonated with Stephanie and would have kept her living in scarcity for 20 years.How she saved $20 - $30K in taxes by living as an ex-pat in Singapore.Why you shouldn't always pay the minimum on your student loans, even if you qualify for income-based repayment.How she fixed her credit and paid off $150K of student loan debt in 8 years, without putting her life on hold to do it.Why the internal work of finding your worth, asking for what you want, and removing external validation from your goals is so critical to making financial progress.The Cash Flow Index strategy for evaluating which loans to pay off, based on how much cash flow they use up monthly.The #1 piece of advice for students selecting a degree program to make sure you don't select a degree program that prohibits you from working in your chosen field.How to repair your credit and refinance your loans.Why your underlying opinions of having money or not having enough are mental constructs that you may need to change to accomplish your goals.Why your debt doesn't define you.
Who is Stephanie Bousley?
Stephanie Bousley is the author of Buy the Avocado Toast: A Guide to Crushing Student Debt, Making More $$$, and Living Your Best Life.
She graduated from New York University’s Tisch School of the Arts with an MFA in Film Production with nearly $200,000 in student loan debt.
Three unpaid internships in the film industry later, the debt snowballed at interest rates of 8.5%, reaching $289,000 at its peak.
Then it all changed. A series of random events propelled her out of the U.S. to Singapore, where she got a job in finance, something she never expected to happen given her MFA degree.
A solid income and hefty bonuses rejuvenated her desire to get her life back on track on every level. What she learned can help so many people who, like her, feel hopeless about their student debt.
Get Your Copy of Buy The Avocado Toast
Find out more about Stephanie Bousley and get a copy of her book, Buy The Avocado Toast today at https://www.amazon.com/Buy-Avocado-Toast-Crush-Student/dp/1641702389.
Start Building Time and Money Freedom Today
Are you trying to decide which debts to pay off, whether to make extra payments and where you can best store your cash so it's growing and you can use it along the way?
If you would like to strategically evaluate your debt pay-off plan so that you have the maximum certainty and peace of mind, book a call with our advisor team here. We'll help you prioritize the best use of your cash, so you can gain control and increase your cash flow.
Thanks for Tuning In!
Thanks so much for being with us this week. Have some feedback you’d like to share? Please leave a note in the comments section below!
Don’t forget to subscribe to the show to get automatic episode updates for The Money Advantage podcast!
And, finally, please take a minute to leave us an honest review and rating on Apple Podcasts. They really help us out when it comes to the ranking of the show, and I make it a point to read every single one of the reviews we get.
Thanks for listening!
https://www.youtube.com/watch?v=7HaB0RGNNJQ
Are you looking for practical guidance on how to create passive cash flow from real estate? Today, we’re talking with Lane Kawaoka, of SimplePassiveCashflow.com about real estate investing for cash flow.
He's a second-time guest on our show. We've brought him back because his work is so valuable to help you build time and money freedom. You can find his last interview here: https://themoneyadvantage.com/lane-kawaoka-simple-passive-cashflow/.
So if you want to find your tribe, know how to evaluate and find the best deals, and invest in the right deals so you can build an asset portfolio quickly, tune in now!
In this episode on passive cash flow, you'll discover:
The most important thing you need to get started with building passive cash flow.Why Lane doesn't flip houses.The top two time-wasters that keep people stuck and not moving forward with building cash flow quickly.The three things that determine your blueprint for passive cash flow.Why you don't need to read every chapter of every book to figure out passive investing.The one thing you need to find out what markets to invest in.The one simple financial formula you can use to calculate whether a single-family turnkey property is a good investment.Why you should nourish the property management relationship first.How to find out the rubric, steps, and order to take to build passive cash flow quickly.
About Lane Kawaoka
Lane has been investing for over a decade and now controls 3,500+ units.
As owner of CrowdfundAloha.com, SimplePassiveCashflow.com, and ReiAloha.com, Lane is responsible for finding investment opportunities, analysis, and marketing.
Lane obtained a BS in Industrial Engineer and MS in Civil Engineering and Construction Management from the University of Washington. In addition to an analytical engineering background, he has real-world experience in working as a project manager for over $250 million dollars of capital construction projects in both the public and private sectors.
Working as a high paid professional in Corporate America and frustrated by the traditional wealth-building dogma, Lane was compelled to inspire and mentor other working professionals via his Top-50 Investing podcast at SimplePassiveCashflow.com.
Speed Up Your Passive Cash Flow
If you want to get started with turnkey real estate, and your net worth is under $250K, check out Lane's free resources at https://simplepassivecashflow.com, especially the first 12 podcasts.
To improve results and shortcut the process, get the curated rubric of what to look for and how to analyze properties with Lane's Passive Investor Accelerator eCourse.
Or, jump to the front of the line and join Lane's mastermind, too.
Find out what Lane is investing in and get access to deal flow through his real estate operations company and Hui Deal Investment Club, where he analyzes and purchases multifamily and mobile home parks for private placement and syndication. You'll get familiar with the vernacular like splits and reversion cap rates. It's free to join, and you don't have to be an accredited investor.
Want to Talk About Life Insurance?
If you have life insurance questions, we’d love to connect.
To discuss your life insurance strategy, or implement Infinite Banking, alternative investments, or passive cash flow strategies to keep more of the money you make, book your strategy call with The Money Advantage advisors today.
Thanks for Tuning In!
Thanks so much for being with us this week. Have some feedback you’d like to share? Please leave a note in the comments section below!
Don’t forget to subscribe to the show to get automatic episode updates for The Money Advantage podcast!
And, finally, please take a minute to leave us an honest review and rating on Apple Podcasts. They really help us out when it comes to the ranking of the show, and I make it a point to read every single one of the revie...
https://www.youtube.com/watch?v=YmwHe1SC70A
Want to pay off your house fast? Considering Velocity Banking? You’re not alone.
So many people are motivated, whether by culture, values, or something else, to pay off their house as quickly as possible.
This desire is completely normal. But it can leave you vulnerable to some pretty big unintended consequences.
When we’re emotionally driven to do something, we can be attracted like moths to a porchlight, to anything that promises that thing.
When it comes to paying your house off fast, one such “porchlight” is Velocity Banking. This widely promoted strategy uses a HELOC to replace your mortgage and pay off your house, usually within 5 – 10 years, and save interest.
The problem is that we can be misled when the messaging hits all of our hot buttons, even if it doesn’t entirely make sense to us.
Save time, save interest? Sounds good, let’s go, right?
But unfortunately, math can be used to show whatever story you want, depending on what information you skip over or leave out altogether.
When the claims don’t add up, but we’d like them to be true, we reason that someone else already figured it out, so we can just trust them.
Unfortunately,
The lie is easier to tell than the truth is to explain.Todd Langford
But when something doesn’t add up, it’s time to dig in and ask questions. Your questions are likely more valuable than the answers you find.
When it comes to your money, you deserve real answers so that you can make informed decisions.
That’s why we’re digging into a case study. We’ll answer the question: What is the fastest way to pay off your house?
So, if you want to have the most financial control while paying off your house, tune in now!
Table of contentsWhere Paying Off Your House Fits into the Cash Flow SystemThe Case StudyA HELOC Is Riskier Than a Typical MortgageRisks of the HELOCVariable Interest RatesHigher Interest Rates Than MortgagesIncreased Payment Required During the Repayment PeriodThe Draw PeriodThe Repayment PeriodExactly what will this new payment be? How could you solve this problem of a rate increase? Why does the minimum payment matter if the point of Velocity Banking is to pay maximum payments? What Is the Fastest Way to Pay Off Your House?What Is the Safest Way to Pay Off Your House?How to Pay Off Your House Fast and Stay in ControlFind Out More
Where Paying Off Your House Fits into the Cash Flow System
Owning a home requires paying for it. And paying for anything, no matter how you do so, affects how much of your money you keep. Making the best financing decisions gives you more to keep and put to work. But no matter how much money you keep, it’s just one small part in the bigger picture of building time and money freedom.
That’s why we have created the 3-step Business Owner’s Cash Flow System, your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of what you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance, legal protection, and Privatized Banking. Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Paying off your house happens right here in The Money Finder step of your financial foundation. When you find, recover, and keep more of the money you’re making, you put more gas into your cash flow machine.
The Case Study
We’ll walk through Truth Concept’s report by Todd Langford and Elizabeth Hagenlocher, Are Accelerated Mortgage Programs Using A Home Equity Line of Credit Effective?
The full report is available for you at the bottom of this article.
The report analyzes a Velocity Banking example where a person exchanged a 30-year mortgage with 25 years left for a HELOC, paid the house off in 10 years and 8 months, and supposedly saved $217,874.12.
In the podcast,
https://www.youtube.com/watch?v=5iloY--jnx4
Do you want to find out how to use short-term rentals to create cash flow right now?
Today, we're talking with J. Massey, CEO and Founder of Cashflow Diary, about how he built a 34-unit-and-counting short-term rental business from scratch.
So if you want to know why short-term rentals are the perfect fit for today's economic landscape, find out if they will work in your location, and how to get started, so you can start generating cash flow today, tune in now!
In this episode, you'll discover:
Why short-term rentals are the "gateway drug" for real estate investing.How you can leverage short-term rentals without owning property.How short-term rentals give you the opportunity to get your investment back in cash flow within 10 - 18 months.The one and only thing you need before you can start a short-term rental business.How to build a recession-proof business and scale by developing multiple points of distribution.How to involve your kids in reaching business goals to transfer the one skill they need to be successful.
Who Is J. Massey?
J. is an expert in short-term rentals, who we're bringing back on the show for a second time. Check out his first interview about Creating Cash Flow with Real Estate here.
His accomplishments include:
CEO and Founder of Cash Flow Diary, a training and development brand for building short-term rental entrepreneurs.Before Cashflow Diary, J. raised capital and invested in traditional real estate (single-family homes, note brokering and holding, cell phone towers, commercial real estate, and apartment buildings). Eventually, he built his real estate investment training program to share what he learns continuously through his years of successful, real-world experience owning hundreds of traditional long-term housing units.When one of his students asked him what he knew about the world of short-term rentals, the answer was, not very much.Once J. started learning about short-term rental strategies, he saw a world of opportunity in front of him. He built his very own 34-unit (46 bedrooms)-and-counting short-term rental business from scratch - which he still owns, grows, and operates - and has shifted his Cashflow Diary brand to focus exclusively on building and training short-term rental entrepreneurs.Now he's built a community of thousands of like-minded people from 16 countries that he learns from every day and shares his knowledge through his Cashflow Diary podcast, YouTube channel, Facebook groups, and annual Short-Term Rental Summit training events.
Get Started with Short-Term Rentals
Find out how you can fast track your cash flow goals at cashflowdiary.com/howmanyunits.
Or learn more about J. Massey and Cashflow Diary at cashflowdiary.com.
Find Out Your Next Step to Time and Money Freedom
To secure a bunker to build investment capital that will magnify your investment returns, start your Privatized Banking System today.
By the way, we have a free Quick and Easy Privatized Banking Guide that outlines just how Privatized Banking is the most powerful storage tank for your cash, PLUS it boosts investment returns without taking on more risk.
If you are ready to personally implement Privatized Banking, alternative investments, or cash flow strategies to keep more of the money you make, book your strategy call with The Money Advantage advisors today.
Thanks for Tuning In!
Thanks so much for being with us this week. Have some feedback you’d like to share? Please leave a note in the comments section below!
Don’t forget to subscribe to the show to get automatic episode updates for The Money Advantage podcast!
And, finally, if you like these conversations about building time and money freedom, please rate and review our show on Apple Podcasts to help more people like you find our show.
Thanks for listening!
https://www.youtube.com/watch?v=Nd1Q31lCczw
Are you a wealth creator with a need to have access to cash in the safest way that puts you in control? Velocity Banking shows up again and again as a solution to pay off your home faster and save interest. It even appears as the ideal way to store up equity in your house to use for investing. And, to add confusion, it sounds a lot like Infinite Banking, with a similar objective of taking the banking function into your own hands, so you achieve independence from the bank profiting on your money and requiring their permission for you to use it.
To further muddy the waters, Nelson Nash’s book, Becoming Your Own Banker, is often cited as the foundation for both strategies. (However, Nelson wrote the book as the foundation for the Infinite Banking Concept, which he promoted through the Nelson Nash Institute.)
But what is the Velocity Banking strategy, and what are the risks? How does it compare to Infinite Banking? And which approach gives you more control?
This episode is for every wealth creator who wants to have access to cash in the safest way that puts you in control, so you’ll never get caught in a cash crunch.
Today, we’ll reveal the three reasons Velocity Banking is a poor alternative to Infinite Banking for building investible capital.
Velocity Banking doesn’t provide safetyVelocity Banking doesn’t guarantee access to your cashVelocity Banking doesn’t give you a rate of return
Table of contentsWhere The Infinite Banking Concept Fits into Your Cash Flow SystemFirst, What Is Infinite Banking?And What Is Velocity Banking?Velocity Banking vs Infinite Banking: The Single Clarifying Question You NeedSTOP. Before you read further, you have to know this:Here’s Your Quick Glance Comparison Between Velocity Banking and Infinite BankingThe Underlying Assumptions of Velocity BankingFinancial Principles and Truths That Put You in ControlLiability ≠ DebtDebt Payoff Should Be StrategicSaving Interest ≠ ControlHome Equity ≠ SavingsVelocity Banking Doesn’t Provide SafetyVelocity Banking Doesn’t Guarantee Access to Your CashYou Can Only Access Equity During the Draw PeriodThe Bank Can Freeze or Reduce Your Credit LineInfinite Banking Gives the First Right of Access to PolicyholdersVelocity Banking Doesn’t Give You A Rate of ReturnInfinite Banking Allows You to Earn A Returns on the Same Money In 2 Places at the Same TimeHow Infinite Banking Puts You in ControlFind Out More
Where The Infinite Banking Concept Fits into Your Cash Flow System
The Infinite Banking Concept (also known as Privatized Banking) is just one step in the greater Cash Flow System.
It’s the peanut butter to your cash flow sandwich.
While it’s nestled into Stage 2, Protection, it also improves everything else around it. Infinite Banking helps you keep more of the money you make in Stage 1, amplify your cash-flowing asset strategy in Stage 3, and accelerate your Time and Money Freedom.
First, What Is Infinite Banking?
Infinite Banking is a strategy of using a specially designed, dividend-paying, high cash value whole life insurance policy with a mutual company as a place to store cash. As you build up cash value, you have access to use it through withdrawals or policy loans.
The result of Infinite Banking is that your cash flow, or surplus, goes into a life insurance policy, where it is stored in cash value.
Here’s how you can find out more about Infinite Banking, the kind of life insurance policy that works for this strategy, and how to get high cash value and long-term growth.
And What Is Velocity Banking?
In short, Velocity Banking is a strategy of using a line of credit to pay off your house faster, while saving interest.
The strategy includes variations such as opening a 0% interest credit card and moving balances of debt from other liabilities to the credit card and then paying off the credit card fast,
https://www.youtube.com/watch?v=UpA90RRTBUM
Have you wanted a way to share your greatest possible gift of love with your spouse, children, and loved ones, but weren't exactly sure how? The best gift requires out-of-the-box thinking because it's not something you can buy at Hallmark. Investments Don't Hug, by Mark Bertrang, shows you how. It's the most poignant, emotional, and compelling book about life insurance that demonstrates the real-life significance of an asset that is truly the embrace that outlasts you.
In this episode, we interview the author about the embracing power of life insurance.
So if you want to simplify financial planning with a disciplined approach that gives the most certainty, make the financial choices today that you will be most grateful for in the future, and take the absolute best care of your family so you can preserve your family’s respect and dignity even during the most challenging circumstances, tune in now!
In this episode on Investments Don't Hug with Mark Bertrang, you'll discover:
How life insurance offers the greatest reassurance, hope, and love when you go through your worst.How to plan as if you will die tomorrow, and live as if you are going to live forever. Why having a default plan allows great opportunities to present themselves today.Why the pandemic has reminded us of the importance of guarantees and ‘safe’, liquid assets.How life insurance allows you to begin with a Plan B, in the event Plan A fails.The whole life nonforfeiture options for the worst-case scenario, and why the safety net and flexibility can be a tremendous source of comfort and confidence.Why you can never be insurance poor.How life insurance embraces and carries you as you transition from one stage of life to another.How exactly you can do what's in your control today to gain certainty for your future.Why your family's estate plan should be refreshed at least once every ten years.How to store years' worth of income, so you never lose sleep about losing a job. Real-life stories of how life and disability insurance carried clients through life circumstances, so you can come face to face with your own mortality, and still have the final say.
Who Is Mark Bertrang?
Mark Bertrang, CLU®, ChFC® is the creator of the Financialoscopy®.
As a professional communicator, broadcasting was his first career. But for more than a generation, Mark has communicated the message of financial security.
In his book Investments Don't Hug, Mark shares stories of pain, anxiety, and joy that illuminate tools for clients to take charge of their own lives.
Important lessons are woven through the stories of real people living real lives, instead of imaginary tales where everything goes right and there’s always a happy ending.
Two values come through loud and clear.
The first is love: the love for your spouse and the love for your children.
The second is a belief that we are all called to a higher purpose, a greater good. It’s not about being centered on ourselves.
Instead, it’s about the giving of our time, our talents, our resources, and our love which can impact our family and our communities for generations into the future.
Want to Talk About Life Insurance?
If you have life insurance questions, we'd love to connect.
We'll help you make the financial choices today that you will be most grateful for in the future, and take the absolute best care of your family with the greatest gift of love that money can buy.
To discuss your life insurance strategy, or implement Infinite Banking, alternative investments, or cash flow strategies to keep more of the money you make, book your strategy call with The Money Advantage advisors today.
Investments Don't Hug Links and Mentions From This Show
Get your copy of Investments Don't Hug on Amazon, Audible, or HERE: https://www.investmentsdonthug.com.
Check out the Discovering Wisdom Over Coffee, with Mark Bertrang podcast.
https://www.youtube.com/watch?v=deWEDJ4ysS0
Here's new life insurance company rating information for every wealth creator who wants to be certain that your savings are stable and guaranteed, so you can be sure the financial moves you make to gain safety really are solid and dependable, so you don't lose money or wonder if an economic crisis could collapse the pillar you're depending on.
So here's where we are right now...
We're in uncertain times. So, you're looking for financial guarantees, safety, confidence, and peace of mind. And you've heard that a whole life policy is a good place to store your cash.
But you're wondering ...
How do you know your savings in an insurance policy are secure and safe? How strong is the life insurance industry really? Could my insurer go out of business? What happens in the worst-case scenario? And how do I use life insurance company ratings to double-check my life insurance purchase to guarantee I'm making the most secure financial move?
Today, we'll dig deep and answer these astute and pressing questions.
Table of contentsWe'll Cover Three Key Life Insurance Company Ratings InsightsA Scary Bridge Taught Me About Verifying Financial StabilityWe had to decide if it was safe to cross.It's like that with our financial decisions.Life Insurance Company Ratings Are A Part of the Bigger Picture of Creating WealthInsight #1 - Compared To Commercial Banks And Investment Firms, Life Insurance Companies Have A Long History Of Financial Strength Under PressureInsight #2 - Life Insurance Companies Are Highly Regulated To Protect ConsumersBut What If An Insurance Company "Fails" and Becomes Insolvent?Let's Peek In On How Life Insurance Companies Handled the Great DepressionA Holiday That Wasn't a PartyThe Banking Holiday Spun Off an Insurance HolidayBut Here's the KickerInsight #3 - Life Insurance Carrier Ratings Are A Window Into The Soul of the CompanyThe Big ThreeAM Best and COMDEX ScoreHere's How to Navigate Life Insurance Carrier RatingsBut Even Life Insurance Carrier Ratings Aren't the Full StorySo, here's the bottom line for every wealth creator…Article Resources
We'll Cover Three Key Life Insurance Company Ratings Insights
1 - Compared To Commercial Banks And Investment Firms, The Life Insurance Industry Has A Long History Of Financial Strength Under Pressure#2 - The Life Insurance Industry Is Highly Regulated To Protect Consumers#3 - Insurance Carrier Ratings Are A Window Into The Soul Of The Company
And, we'll also reveal the radical move the life insurance industry made during the banking holiday of the Great Depression. During one of the worst economic times during American history, insurers sunk the roots of their financial strength even deeper.
But first, let me tell you about a time when ...
A Scary Bridge Taught Me About Verifying Financial Stability
When I was about 14, my Dad, siblings and I saddled up the horses and set off for an adventure. We'd set out a on a new route along our country gravel road, tracing the edge of the neighbor's field. An entrance to a snowmobile and four-wheeling trail beckoned us into an unfamiliar forested section of property. The invitation wasn't unusual, as we'd easily ridden hundreds of miles of trails through the rural Minnesotan woods. But today, as we came into a clearing, there stood a narrow wooden bridge that made us pull up fast.
We had to decide if it was safe to cross.
It was easily 9 feet over the ditch below, and probably 20 feet across. The kind that makes horses jittery and jumpy, and all the riders shake a little in their boots.
The horses snorted, balked and showed the whites of their eyes in protest.
Now walking on a wooden bridge is the equestrian equivalent of beating a hollow drum underfoot. It's one of the top potential obstacles to spook a horse, make them rear up and throw a rider. Or jump and stumble over the edge in fright and panic.
We all have the opportunity to upgrade our environment, inner circle, and mindset. In fact, it's a prerequisite for living your best life! Today, we're talking with Mark Battiato, co-founder of the Growth Into Greatness Institute, about growing your business, having the maximum impact, increasing profitability, and becoming the best version of you.
Who Is Mark Battiato?
Mark Battiato is an
Entrepreneur Business, Life and Possibility Coach Co-Founder of The Growth into Greatness InstituteAuthor of Geronimo, 8 Jumps to Your Supercalifragilisticexpialidocious LifeAnalyzed over 500 dental practices in the US since 1992Helped hundreds of dentists reduce overhead, simplify their business, improve net profit, and increase time off for the whole team
Conversation Highlights
How Mark met Jim RohnThe funny story about how he met, and then came to be mentored by Jim Rohn's mentor, Bill BaileyThe difference between knowledge and wisdomHow Mark found the key to his first business failure in the e-MythHow to find and create your inner circle
Find Out More About Mark Battiato
Learn more about profitability solutions for dental practices at http://www.greatnessinstitute.com/.
Find Out Your Next Right Step to Time and Money Freedom
If you are ready to personally implement Infinite Banking, alternative investments, or cash flow strategies to keep more of the money you make, book your strategy call with The Money Advantage advisors today.
https://www.youtube.com/watch?v=_pFTv5igQXc
Do you want to find out how to get the most income with reverse mortgages, and still have the cash to replenish your estate and pass on a legacy?If you want to maximize income, especially during your later years, understand how to get a permission slip to get more income with a reverse mortgage, and gain control by having more financial options, so you can boost your confidence in your own financial stability, both now and in the future, this episode is for you!
In this episode, you'll discover:
How reverse mortgages can convert home equity into cash or income.How the Baby Boomer's $7.2 Trillion of home equity in their current homes can be used to supplement their retirement and medical needs.The 4 options available to custom-design a reverse mortgage to meet your specific financial goals.How a reverse mortgage allows you to minimize the risk of having to take money out of your portfolio when the market is down and never being able to recover.The secret that makes income from a reverse mortgage income tax-free.The reverse purchase that makes it possible to downsize, or rightsize to a new home during retirement, never owe a mortgage again, and still have cash on hand.How a reverse mortgage can increase your cash flow by reducing expenses and increasing income, often at the same time.How a reverse mortgage affects your legacy and your kid's financial economy.The advantage of using whole life insurance death benefit to replenish your estate, giving you permission to use up other assets, and still maximize your legacy.
About Mike Stanley (Michael)
Michael Stanley is an expert in reverse mortgages whose accomplishments include:
Serving the mortgage industry since 1995Focused exclusively on Reverse Mortgages for the last 12 yearsBranch manager of Universal Mortgage & FinanceLives in Virginia Beach VA with his wife of 35 yearsLoves spending time with his son, daughter-in-law, and a beautiful granddaughter
Find Out Your Next Right Step to Time and Money Freedom
If you'd like to take the one next right step into ensuring the most options for future income, get whole life insurance with a guaranteed death benefit today. This tool will be your permission slip to use up other assets and still have the greatest possible legacy.
By the way, we have a free Quick and Easy Privatized Banking Guide that outlines just how Privatized Banking gives you the most powerful storage tank for your cash, PLUS it boosts investment returns, so you can more quickly get to the point where you never run out of cash.
If you are ready to personally implement Privatized Banking, alternative investments, or cash flow strategies to keep more of the money you make, book your strategy call with The Money Advantage advisors today.
Reverse Mortgage Resources & Mike Stanley's Contact Info:
Calculate your options with a reverse mortgage or find out more at www.umafi.com.
You can also text or call Mike Stanley directly at (757) 646-4147.
Thanks for Tuning In!
Thanks so much for being with us this week. Have some feedback you’d like to share? Please leave a note in the comments section below!
Don’t forget to subscribe to the show to get automatic episode updates for The Money Advantage podcast!
And, finally, if you like these conversations for increasing your financial control and certainty, so you can have confidence and peace of mind, and prosper regardless of the economy, please rate and review our show on Apple Podcasts to help more people like you find our show.
Thanks for listening!
https://www.youtube.com/watch?v=FtX1shbUJ_0
The death benefit sounds like the least attractive and most basic part of life insurance. Wouldn't the only people talking about it be either a doomsayer or Captain Obvious?
Far to the contrary!
Life insurance death benefit offers a tremendous advantage that enhances your life and makes it so much richer.
So we're taking this topic head-on in today's episode and discussing the 5 reasons you want to have a life insurance death benefit.
And to add some flavor to the conversation, we're introducing you to Ryley Smith, one of The Money Advantage's advisors.
So if you want to discover and solve your top priority financial concerns, take care of your family, and be able to spend and enjoy more of your money and live on beyond yourself, tune in now!
You'll be surprised at the depth of this inspiring, thought-provoking, soulful conversation that will help you put your best foot forward to living your best life.
In This Episode About Life Insurance Death Benefit, You'll Discover:
Why the death benefit is the most powerful thing about life insuranceThe living benefits the death benefit provides, even if there's no cash valueHow the death benefit allows you to spend and enjoy more of your moneyHow most people give up financial control to banks and financial institutionsThe 3 questions you should ask yourself when buying anythingThe 5 reasons why you would want life insuranceThe 3 ways whole life insurance can have no costThe only way money has value to youThe 7 levels deep exercise to get to the heart of what you really wantThe 1 surprising question you should ask yourself at the end of each day to live your best life
Who is Ryley Smith?
Ryley Smith is an inspiring human who serves The Money Advantage clients by helping them articulate their vision, discover their financial picture, and create a strategy to get the most cash flow and control.
Here's a bit more about his background.
Advisor for The Money AdvantagePassionate about sharing the truth behind financial conceptsLicensed Doctor of Physical Therapy, and former Certified Athletic Trainer, and Certified Strength and Conditioning SpecialistGrew up in Carthage, Illinois enjoying the small-town life with family and friendsVery active in sports growing up and into collegeAn avid reader and enjoys being active outdoors and with personal fitness
Get Financial Clarity Today
If you would like to implement Privatized Banking, cash flow strategies, or alternative investments, so you can accelerate time and money freedom, we can help. We’ll review your situation to help you decide what moves are best for you.
To start the conversation, book a call with our advisor team.
Success leaves clues. Model the successful few, not the crowd, and build a life and business you love.
https://www.youtube.com/watch?v=Wz6IVtcW_10
Does the current market volatility make you wish you had a financial bunker to protect you from losing money?
If you would love to gain control by having the certainty of guaranteed money today and in the future ... need to make traction towards financial freedom, regardless of the global economy ... want to have investible cash available to buy the right investments when they go on sale ... or stuck with wanting to have a strong cash position, but frustrated that bank rates are low and CDs and bonds aren't very liquid ... you're not alone!
These are the concerns we see from investors and wealth creators everywhere as we all grapple with the financial turmoil and uncertainty in the markets today.
That's why we're talking about the lost art of protecting and preserving your wealth. After all, who doesn't want to protect their portfolio from risk and loss?
So if you want to anchor your financial position so you don't slide backward during market crashes and corrections, but instead, maintain control, and have cash for emergencies and opportunities so you can create wealth, regardless of global economic turmoil, tune in now!
Where a Financial Bunker Fits In The Bigger Picture of Creating Wealth
Protecting and preserving your money is super important right now. It's also important in any market environment, because it's a critical step in creating wealth.
But unfortunately, it's the un-sexy, boring step that many people skip over in their excitement to invest.
But investing alone isn't a sustainable financial system for long-term wealth building.
That’s why we’ve developed the 3-step Cash Flow System. It’s your roadmap to go from just surviving, to a life of significance, purpose, and financial freedom.
The first stage is the foundation. You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable.
Then, you protect your money with insurance and legal protection and Privatized Banking.
Finally, you put your money to work, increasing your income with cash-flowing assets.
That being said, your financial bunker is the middle level of Protection. It's not just an isolated, compartment of your financial life. Instead, having a financial bunker improves every other area of your financial life.
In This Episode, You'll Discover:
What you need to know about the economic state of the union, so you can make decisions.How to turn your generalized anxiety and worries about the looming economic crisis into peace and confidence.The pivot you need to make to step from a helpless observer in the back seat to the driver in control of your financial life.Why most people lack financial control, and how to gain a sense of agency, that you can desire, make plans, carry out actions, and get results.The conundrum you put yourself in when you become the recipient of a gift.Why it’s so much harder to make decisions for yourself instead of doing what everyone else is doing.Why you should never accept losing money as the price you have to pay, just because everyone else is losing money too.The reason I don’t pay attention to the stock market, and why you can give yourself the permission to make this outrageous, bold move too.Why not losing money right now is more important than making a lot of money.The #1 thing you can do to secure a financial bunker to protect yourself from financial storms right now, without shutting down your own personal economy, SO YOU CAN continue to grow your wealth at the same time.The #1 financial tool to get guarantees, safety, access to your money for emergencies and to buy assets when they go on sale.Why asking better questions is more helpful to getting you unstuck than finding the right answers.
The Most Unlikely Solution
The financial bunker that gives you peace of mind with safety, security, and ironclad guarantees is the most unlikely solution.
https://www.youtube.com/watch?v=e7ZgSxhq5Jc
Need cash to sustain your business through shutdown or reduced revenue due to stay at home orders? Looking for ways to protect your family and business from bankruptcy during the COVID-19 pandemic?
In today's podcast, we’re sharing the emergency financial options to help business owners and families weather this economic crisis.
We brought our tax strategist, Dustin Griffiths of King's Tax and Accounting, into the conversation as we help you navigate the financial options available through the $2 Trillion Coronavirus Aid, Relief and Economic Security (CARES) Act to help you through these unprecedented challenges.
Find Out ...
How to use the Payroll Protection Program (PPP) to cover your payroll, mortgage interest, rent, and utilitiesWhy every business owner should apply for the Economic Injury Disaster Loan Advance (EIDL)Why you may want to file 2019 taxes immediately, or not, to get the most from the stimulus checksHow to best use unemployment to stay in business and get your contractors and part-time workers the most income at the same timeHow you may be able to qualify for an extra $600/week of unemployment, even if you're a contractorFind out your state's tax deadlinesHow the extension for filing taxes helps you keep more cashWhy you may not want to exercise your mortgage relief optionsHow to get access to your 401(k), 403(b), 457, IRA, or SEP IRA for extra fundsWhy now is the ideal time for a Roth conversionFMLA, student loan payments, and Net operating loss (NOL) carry back
While I’m not a fan of government intervention, in this case, knowing your options may be the lifeline that gets you through these tough times.
Upgrade your tax strategy to navigate this time and make the right moves. Contact Dustin at dustin@kingstaxllc.com
Protect Yourself From Losing Money
Get the FREE Stabilize and Preserve Your Finances Cheat Sheet, practical action steps you can take to strengthen your financial defenses and protect yourself from losing money.
In 1 PAGE, you'll get:
The #1 financial life preserver you need right nowResources to increase your cash flow, pay off loans, and permanently reduce taxesCliff notes version for using all the major components of the CARES Act, including: UnemploymentStimulus checksPayroll Protection Program (PPP)Economic Injury Disaster Loan (EIDL)Accessing 401(k) and IRA moneyMortgage loan forbearanceStudent loansThe CARES Act Town Hall, with Tom Wheelwright of WealthAbilityThe Cash Is Still King: Crisis Survival Guide from Keys to the Vault and Business School for EntrepreneursAND much, MUCH more!
Stabilize & Preserve Your Finances Cheat Sheet
Financial Emergency Moves & Options to Help You Weather This Economic Crisis
https://www.youtube.com/watch?v=jhjo6LMM84Q
Are you trying to decide how and when to implement Privatized Banking?Today, we're talking with Brett Hildebrandt and Molly Urban about how they are getting answers to their most important questions about Privatized Banking.
This episode is for you if you want to satisfy your thirst for knowledge about Privatized Banking, close the loop on your research, and see exactly what it takes to get started!
Brett and Molly are sitting in your seat right now. They're looking for how to stack up the most security and certainty in their financial life and get the maximum return on their investment. That's because they want to flourish in every other area of their life. They've been researching Privatized Banking. And they're walking through the process of securing their financial resources to best build financial freedom.
Let’s tune in to hear the conversation in their mind, so you can understand how to get started with Privatized Banking.
Unequivocally relevant to the conversation, today is April 1, 2020, and this is not about April Fool's. Today, we are all facing an unprecedented unknown, new territory, and tremendous uncertainty as we face the global pandemic … yet, it's still possible to take confident and strategic action towards FINANCIAL FREEDOM now.
In This Episode, You'll Discover:
How taking control of your life requires deprogramming what you thought you knew.Why asking the best questions is better than having the best answers.How a mind and brain altercation that brought Brett back from the rock bottom of depression, and challenged Molly to find out what more was possible when she was already at the height of her career, is now propelling them to do the MOST with their money.Why self worth is ESSENTIAL before you can take CONTROL of your money.How Privatized Banking is the King, the crème de la crème of financial tools.
Who Are Brett and Molly?
Brett Hildebrandt is currently helping to grow 2 businesses. He is the lead sales strategist at a full-service digital marketing company in Wisconsin. He's also the director of business development for a professional development company called Flowcess LLC, which holds proprietary information on the mind and the brain that was declared a trade secret for 20 years.
Brett is also a military veteran. He served 8 years in the Wisconsin Army National Guard as both a medic and chaplain assistant and served in Operation Iraqi Freedom ‘09-10.
Molly wears many hats. She is the mother of 2 young boys, corporate leader, executive coach, public speaker, entrepreneur, investor, consultant, and internationally certified trainer. As head of Leadership Development for a global software company, Molly designs, develops, and implements tailored leadership and professional development programs for the organization’s leadership team. She embraces the opportunity of bringing revelatory ideas with practical life-changing application.
In addition to these various roles and responsibilities, Molly finds the most satisfaction in helping leaders discover unique strategies for dissolving personal and corporate challenges by utilizing the mind & brain information she learned through Flowcess.
Together Brett and Molly started their real estate investment company, Charis Investments LLC, in 2019 and currently have 11 doors with a 4-unit and 7-unit building.
Ultimately, their goal is to generate enough residual income from all their investments to achieve financial freedom to live out their unique brands: facilitating the purpose and progress of others in every area of their life.
They both share the same philosophy of wanting to maximize their return on investment in all areas of their lives. Striving to get the best return on investment financially has led them to the concept of utilizing whole life insurance policies as a privatized bank, commonly known as the Infinite Banking Concept.
https://www.youtube.com/watch?v=ErkhA2dRdBs
In this episode, we talk with James Smiley about why most entrepreneurs struggle with making money online quickly.If you want to create a brand, become an influencer, and build a self-sustaining business so you can build a life and business you love, tune in now!
In this episode, you'll discover:
How he went from getting arrested and getting kicked out of school to leading a multi-million dollar companyWhy you don't need a huge list or following to grow your business, and what you do need instead ... and exactly how to build itThe one simple business strategy that will make you stand out, and give you years of leverageHow to become an influencer if you're not already an established thought leader like Tony RobbinsThe top 2 crucial keys to making money online quickly
Who Is James Smiley?
James Smiley is an expert in making money online quickly whose accomplishments include:
James has been recognized as one of the most innovative and in-demand entrepreneurs under 40.He has led $0 to $20M growth for two different companies, been a part of a Silicon Valley SaaS IPO, and consulted for 3 of the Fortune 10.He built countless 7 & 8 figure funnels, including one $1.7M webinar.James has been the behind-the-scenes paid advisor to over 560 executives & entrepreneurs.His primary specialty is helping entrepreneurs with rapid revenue acceleration by leveraging online automation and his proprietary digital marketing systems.James has published 7 books, recorded 1000s of videos and podcasts, trained over 12,000 B2B sales reps, delivered 600+ speeches, and sold over $210M before the age of 35.He played some college football and is a former ESPN Bassmaster pro angler and fished in the Bassmaster National Championship.
James Smiley Episode Resources
Learn more about how you can improve your results: https://jamessmiley.com.
Thanks for Tuning In!
Thanks so much for being with us this week. Have some feedback you'd like to share? Please leave a note in the comments section below!
If you enjoyed this episode, please share it with your friends.
Don’t forget to subscribe to the show on Apple Podcasts to get automatic episode updates for The Money Advantage Podcast!
And, finally, please take a minute to leave us an honest review and rating on iTunes. They really help us out when it comes to the ranking of the show and I make it a point to read every single one of the reviews we get.
Please leave a review right now.
Thanks for listening!
Success leaves clues. Model the successful few, not the crowd, and build a life and business you love.
https://www.youtube.com/watch?v=NYZC3XZ9qhU
With the threat of Coronavirus breathing down our necks, unprecedented social measures to stop the spread of the virus, and the tumbling chaos in the financial markets, it can feel like our world is fragile and fraying.How do you create a life and business you love in the midst of that?Our goal in this conversation is not to oversimplify the concerns at hand, pretend we can predict the outcomes, or dismiss the panic of a pandemic.
But we all need a way forward, to move us out of fear and into confidence.
Here's what Dan Sullivan, of Strategic Coach, has to say about these trying times:
What’s important to me right now? Making sure to keep my confidence up each day. Confidence is the ability to transform fear into focused and relaxed thinking, communication, and action. It turns dangers into opportunities, obstacles into innovations, weaknesses into advantages, and setbacks into breakthroughs.When you have confidence as a daily resource, you can learn anything, respond to anything, adjust to anything, and achieve anything.Dan Sullivan, Strategic Coach
So how can you inject that antidote of confidence to the pandemic of fear and uncertainty?
This episode will help you:
Find out the real reason your confidence fails during hardship.Get practical ways to make money during the Coronavirus.And find out the simple action plan to get a life preserver in your health, but more importantly, your wealth right now.
The changes in our environment require your leadership and courage in your circle of influence right now.
The 5-Step Action Plan to Survive and Thrive in Uncertainty and Chaos
1) Take Care of Your Mindset
The real reason our confidence fails us is that we allow the external crisis to shake our mindset, rather than requiring our mindset to direct our response to the crisis.
“Everything can be taken from a man but one thing: the last of the human freedoms—to choose one’s attitude in any given set of circumstances, to choose one’s own way.” Viktor E. Frankl, Man's Search for Meaning
But abundance comes from your mindset. From your ability to choose your mindset and your response, regardless of your circumstances.
At the risk of sharing something too personal, I read this in my devotions yesterday:
Abundant life is not necessarily health and wealth; it is living in continual dependence on Me [Jesus].Sarah Young, Jesus Calling
This statement challenged me deeply, as I'd like to think that abundance is in financial security, vibrant health, rich relationships, and vivid purpose. But those things are all external - the result or outflow. I don't have complete control in those areas.
What is most important is what's internal: my character, conviction, mindset, and response. That's where I do have control, and it's the most important thing we all need to wrest control of so we don't go off the rails.
Abundance starts inside of you. It makes you creative and collaborative, expansive, and full of faith.
The antagonist is scarcity, the mean, limiting taker that pits us against each other, wires us in anxiety, and paralyzes us in fear. None of us are immune.
But we have to choose abundance to gain confidence, vision, and wisdom for how to respond.
Spend time in gratitude. Read inspirational, soul-fueling books. Dedicate time to learning a new skill. Take a course. There are limitless resources and knowledge all around you, and limitless capacity for production.
2) Take Care of Your Health
For me, this was a big one! I'll admit, I had a lot of anxiety about this when the world started talking about Coronavirus.
Instead of ignoring the news and trying to rise above by focusing on what I wanted, I had to allow myself time to find the answers I needed. I needed to ask real questions and find my footing.
How would I stay healthy? How would our family apply social distancing?
https://www.youtube.com/watch?v=bK6cj5VH4_k
Most people miss the advantages of whole life insurance because they view it as strictly an insurance product that doesn't do anything else. But it's that perspective, not the product, that has the limitations.Do you need to get the highest-quality life insurance you can count on, but you feel like life insurance agents are conspiring against you and sabotaging your success? Do you have questions about the advantages of whole life insurance, or maybe you need some tools to help you?
Well, look no further because this article will give you the advantages and answers you need, without you having to compartmentalize it as just buying death benefit, separate from the rest of your financial life.
Best of all, these seven goodies will put you on the fast-track to success with your life insurance right now.
Table of contentsWhere Do the Advantages of Whole Life Insurance Policies Fit in the Cash Flow System?Advantage of Whole Life Insurance #1: Vault-Like SafetyAdvantage of Whole Life Insurance #2: Competitive Growth on Cash ValueAdvantage #4: Tax SavingsAdvantage #5: Gateway to Income-Boosting StrategiesAdvantage #6: Privacy from Creditors and LawsuitsAdvantage #7: Legacy PreserverPros and Cons of Whole LifeFind out More
Where Do the Advantages of Whole Life Insurance Policies Fit in the Cash Flow System?
Life insurance coverage in itself is just one small part of the bigger journey to time and money freedom.
That’s why we’ve developed the 3-step Business Owner’s Cash Flow System. It’s your roadmap to go from just surviving, to a life of significance, purpose, and financial freedom.
The first stage is the foundation. You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable.
Then, you protect your money with insurance and legal protection and Privatized Banking.
Finally, you put your money to work, increasing your income with cash-flowing assets.
That being said, whole life insurance designed for maximum early cash value AND maximum long-term growth fits in the protection layer of creating wealth. At the same time, it improves every other area of your financial life.
Advantage of Whole Life Insurance #1: Vault-Like Safety
A whole life insurance policy is a savings vehicle, not an investment product. You can compare it to other savings tools, like checking accounts, savings accounts, money market accounts, and CDs.
Similarly, a whole life policy's cash value is safe, because it won't drop in value.
This matters, because your cash value is impervious to market crashes and corrections. It won't drop in value unless you take the money out.
And if you take a peek behind the curtain to compare whole life insurance companies to banks, you'll be impressed here too.
Life insurance companies can make these profound guarantees mainly because of their long-term conservative investment strategy and their strong reserves. While many banks are required to keep only 10% in reserves, life insurance companies have more than 100% in reserves.
Notably, banks failed 27x more than insurance companies did during the years between 2005 - 2017. During those 12 years, there were 523 bank failures, while only 19 life insurance companies became insolvent. And those companies were small, poorly rated, companies. The highly rated companies have stood strong for well over 100 years, through multiple economic crises.
And like the FDIC that insures your bank deposits up to $250,000, each state has a Guaranty Insurance Fund (GIF) that insures your insurance.
Top that off with making sure you're working with the highest-rated, best life insurance companies. Then, you can be doubly, triply sure that whole life cash value is a savings tool that will guarantee your dollars will be there for you.
Advantage of Whole Life Insurance #2: Competitive Growth on Cash Value
https://www.youtube.com/watch?v=aQ1aApSPch8
Ready to invest in real estate, but don't know where to start? In this episode, Jeff Schechter "Shecky" and Jack Gibson discuss buying your first investment property - a turnkey rental.
So if you want to springboard into asset-based cashflow, be fully prepared, and buy the right property so you can replace your income with a real estate portfolio, tune in now!
Where Does Investing Fit in the Cash Flow System?
Investing is just one step in the path to time and money freedom.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It’s your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking.
Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Today’s conversation will help you take the plunge into your first investment property.
Who is Jeff Schechter "Shecky"?
Jeff Schechter "Shecky" and Jack Gibson are the owners and operators of High Return Real Estate. We interviewed Jack Gibson about his background and the High Return Real Estate investment opportunity here.
Shecky’s accomplishments include:
Started first business right out of collegeDeveloped sales and marketing strategies that have worked well across many industriesNumerous businesses venturesBegan flipping personal residences in the 1980sBought and sold many propertiesActive investorPrivate consulting practice, coaching hundreds of business owners, and thrive on helping people realize their full potential, not just in business, but in all aspects of life!
In This Interview with Jeff Schechter, You'll Discover:
Once you have the cash, pick a property that makes sense, then pull the trigger.Have a holistic approach - more important than analyzing the numbers, know who you are doing business with and the reputation of the person you are buying from.Price and numbers don't tell the whole story - there is always variance from the numbers on the pro forma.Work with someone who has the wisdom of experience, who can buy in volume and get better deals.A great turnkey provider will provide full transparency, before and after pictures, the scope of work, current condition with third-party inspection, and checklists of what was done.Cash-on-cash returns are a benchmark, but they don't tell the whole story - instead, recognize the five areas of asset build-up that make real estate an IDEAL investment: Income, Depreciation, Equity build-up, Appreciation, Leverage.Take responsibility for your self-education.Revel in the experience and accept it as a learning experience - there is no better teacher than experience, don't judge every nuance as good or bad.With the experience under your belt, don't stop. Look for ways to scale and develop a performing portfolio to create financial independence. Replicate good investments. Put together your cash for the next investment. Never stop learning.If you're looking for perfection, don't get into real estate investment.Most importantly, stay in your lane - if you're a professional or entrepreneur, stay hyper-focused on scaling your business. Then, take your profits, find out how to leverage the professional and invest with them. That’s how you cut the steep learning curve as you start on your investing journey.
Find Out Your Next Right Step to Time and Money Freedom
If you are ready to personally implement Infinite Banking, alternative investments, or cash flow strategies to keep more of the money you make, book your strategy call with The Money Advantage advisors today.
Turnkey Real Estate Links & Mentions From This Episode:
Learn more about how you can improve your results with turnkey real estate with Jeff Schechter,
https://youtu.be/H1Pz7bX8Nug
If you're ready to get the best life insurance for the best price, then I've got a secret here about the cost of whole life insurance you need to learn about FAST.A quick secret for success in getting the best life insurance policy: a properly structured whole life insurance policy creates cash value that is an ideal place to store cash. Note: We aren't talking about your typical, off-the-shelf whole life product. Rather this is whole life custom-designed for Privatized Banking, with maximum early cash value and long-term growth.
The point of this secret is: whole life insurance is tough and enduring insurance, PLUS a knockout savings tool on steroids.
It starts out the gate with high cash value. But you won't have access to as much as you've put in right away. Once you overcome the minor lack of liquidity in the very first years, you reach a crossover point where you have more cash available than you've put in.
Starting at that point, there's no more cost to you, and every year afterward for the rest of your life is growth. Yes, there are internal costs to the policy, and we'll discuss those in a minute, but what matters is how it impacts you.
As a wealth creator, here's what this really means: as soon as you switch your lens from a short-term to a long-term - dare I say multigenerational life-time focus - whole life insurance becomes the most robust and extravagant savings tool imaginable.
Table of contentsWhere Whole Life Insurance Fits in the Cash Flow SystemWhy Whole Life Is a Potent Savings Tool1. High Cash Value Whole Life Insurance Isn't a Cost or an Expense - It's a Savings Plan. 2. Whole Life Insurance Values Are Net of Taxes, Fees, and Costs. 3. Once You Have More Cash Value Than the Total Premiums You've Paid, There's No More Cost to You.4. Whole Life Is the Least Expensive Form of Life Insurance. Dollars In vs. Dollars Out Doesn't Require a Value JudgmentBottom Line?
Where Whole Life Insurance Fits in the Cash Flow System
Life insurance is great, but it's not the one and only thing for financial success. Rather, it's one step in your journey to time and money freedom.
That’s why we’ve developed the 3-step Business Owner’s Cash Flow System as your roadmap to go from just surviving, to a life of significance, purpose, and financial freedom.
The first stage is the foundation. You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable.
Then, you protect your money with insurance and legal protection and Privatized Banking.
Finally, you put your money to work, increasing your income with cash-flowing assets.
Why Whole Life Is a Potent Savings Tool
Compared with other savings tools, specially designed whole life insurance gets better growth with a 3 - 5% internal rate of return over a 20+ year timeline.
Plus, you don't pay taxes on the growth, as long as you use the policy correctly*, and your heirs won't pay income tax on the proceeds.
And, on top of that, you can use your money at any time along the way.
Even better yet, when you use your money to invest in cash-flowing assets, you also get an external return while you're building time and money freedom, and this will accelerate your path and amplify your returns.
Meanwhile, you have a death benefit that's many multiples over what you put in, so you have a built-in legacy, plus increased income in the future.
Everyone needs to know this because:
- High Cash Value Whole Life Insurance Isn't a Cost or an Expense - It's a Savings Plan.
It's a new opportunity to move your dollars from one storage tank (the bank) to another better storage tank (a whole life insurance policy).
- Whole Life Insurance Values Are Net of Taxes, Fees, and Costs.
Whole life illustrations don't disclose the internal costs of the policy in the figures. For some, that creates heartburn.
However,
https://www.youtube.com/watch?v=Q31siMqC7is
Rod Khleif has transformed from losing $50 Million to living a spectacular life and achieving everything he's dreamed of. Rod is a passionate real estate investor who has personally owned and managed over 2000 properties. As one of the country’s top real estate, business, and peak performance luminaries, Rod has also built over 23 businesses in his 40-year business career.Rod khleif is also the author of How to Create Lifetime Cashflow through Multifamily Properties, coach and mentor for multi-family investors, and host of the top-ranked Lifetime Cashflow through Real Estate Investing podcast.
Where Investing Fits into the Cash Flow System
Here at The Money Advantage, we are a community of wealth creators taking control of our lives and financial destiny.
It’s not enough to make a high income. You have to keep more, protect that money, and finally, increase and make more through the right investing decisions.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It’s your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking. Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Today’s conversation will expand your education and paradigm of investing.
Who is Rod Khleif?
A compelling rags-to-riches-to-rags-to-riches story, Khleif soared from humble beginnings as a young, impoverished Dutch immigrant to incredible success. Rod’s experience involves both remarkable triumphs and spectacular failures, which he affectionately calls “seminars.” Rod brings incredible authenticity and insight to his approach to business, success and life.
Rod loves training and coaching the “psychology of success” to aspiring real estate investors and entrepreneurs. He can train and coach on virtually any business or success related topic in great depth, contributing incredible first-hand, technical, and motivational knowledge and skills.
Rod Khleif has combined his passion for real estate investing with his personal philosophy of goal setting, envisioning, and manifesting success to become one of America’s top real estate investment and high-performance life coaches.
As an accomplished entrepreneur and business owner, Rod has built several successful multi-million dollar businesses. But ask him what he is most proud of, and he will tell you about his work as a community philanthropist.
Giving back to the community is a major passion for Rod. He is the founder and long-serving president of the Tiny Hands Foundation, a children’s charitable foundation that leads several annual community charitable initiatives including: Back-to-School Backpack Brigade; provides thousands of new backpacks filled with school supplies to community school children in need. Teddy Bear Brigade; provides thousands of Teddy Bears for community police department patrol cars to be given out by police officers to comfort children in distress. Holiday Basket Brigade; provides thousands of Holiday Gift Baskets filled with food and Christmas toys to community children and families in need. Over the past 14 years, Rod’s work has benefitted more than 75,000 underprivileged community children.
Rod Khleif's Goal Setting Exercise to Get Everything You Want Out of Life
Set aside one hour of uninterrupted time. Write down everything you want out of life. Outline the stuff you want to do, the things you want to learn, and who you want to help.Put a time limit on each goalPick your #1 priority that you'll focus on right now.Write down your top three 1 year goals on another sheet of paper, leaving space between them.For each of your one-year goals,
https://www.youtube.com/watch?v=Z6gZz7IIEzQ
Waiver of premium is like having insurance on your insurance. So, if you are a wealth creator who wants to make sure your life insurance will be the cornerstone of your wealth and take care of your family no matter what, here are 3 quick questions to ask to make sure you get a bulletproof policy.
But first ...
Table of contentsWhere Does Waiver of Premium fit into the Cash Flow System?Waiver of Premium Question #1: How Would My Life Insurance Be Impacted If I Became Disabled? Financial PressureImpacts on Your Life Insurance PolicyReasons to Maximize Your Life Insurance if You're DisabledYour Life Insurance Becomes The Savior ... Of ItselfWaiver of Premium Question #2: How Common Is Disability? Waiver of Premium Question #3: What Puts Me In The Best Position In The Widest Range Of Circumstances? Maximum Policy Performance, No Matter What HappensBottom line? Share the Love!
Where Does Waiver of Premium fit into the Cash Flow System?
The waiver of premium rider is an add-on to a life insurance policy, an integral part of your financial life. But life insurance in itself is just one small part of the bigger journey to time and money freedom.
That’s why we’ve developed the 3-step Business Owner’s Cash Flow System. It's your roadmap to go from just surviving, to a life of significance, purpose, and financial freedom.
The first stage is the foundation. You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable.
Then, you protect your money with insurance and legal protection and Privatized Banking.
Finally, you put your money to work, increasing your income with cash-flowing assets.
The Waiver of premium benefit is a life insurance upgrade feature in the protection component of your cash flow system.
Waiver of Premium Question #1: How Would My Life Insurance Be Impacted If I Became Disabled?
This simple question means you must understand a key idea. What if disability prevented you from continuing working in your current profession, at your current level of income? And what if that limited your finances so that you couldn't continue to pay premiums for a life insurance policy? And what if you had wanted that policy to be your access to cash and the legacy for your family?
Financial Pressure
You need to know the answer to this question because a life-altering event that causes a disability could not only cause physical challenges, but it could heap on financial strain in compounding ways as well.
If disability were due to an illness or injury, there could be extended medical expenses and recovery time. You may want or need your spouse close to assist you. Neither of you may be able to work during this time.
The reason this matters is that if you lose the ability to keep working the way you always have, your primary source of income could become tenuous, or be lost altogether. And that means life would force difficult decisions about what expenses you have to cut out. With medical bills and basic needs requiring top priority, there may not be enough to pay life insurance premiums.
Impacts on Your Life Insurance Policy
With a term life insurance policy, that could mean having to walk away from a policy. In this case, you'd give up the death benefit AND the dollars you've paid in premium up to this point.
With a whole life policy, that could mean canceling your policy or choosing another funding method. Options include paying base premium only, paying from policy values, using policy loans, or reduced paying up. You'd have to accept that these options will reduce your cash value and/or survivor benefit, constricting the policy.
Reasons to Maximize Your Life Insurance if You're Disabled
But rather than limiting your policy, you'd have far more options if you maximize your cash value and life insurance coverage instead.
https://www.youtube.com/watch?v=T8YrxVLGUO8
In this episode, we interview Jorge Newberry, CEO of American Homeowner Preservation, about how to invest in distressed mortgages with as little as $100.
So if you want to get between 7 - 12% annual cash returns paid out monthly, understand your investment, and make a huge difference in families, neighborhoods, and communities, starting with a small investment, without having to be an accredited investor with a $50K minimum, tune in now!
Where Investing Fits into the Cash Flow System
Here at The Money Advantage, we are a community of entrepreneurially-minded wealth creators who are taking control of our lives and financial destiny.
It’s not enough to just make a great income. You have to figure out how to keep more, protect that money, and finally, increase and make more through the right investing decisions.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It’s your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking.
Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Today’s conversation will give you a fresh perspective on an investing opportunity for big returns with a small investment.
Jorge Newberry Conversation Highlights
In this episode, you'll discover:
What led Jorge Newberry to found AHP 12 years agoThe purpose and mission of AHPThe prevalence of defaulted mortgages today, 10-years after the housing crisisHow AHP helps homeowners stay in their homes How AHP offers a minimum investment of only $100The returns, payout, and liquidity investors can expect when investing with AHPThe current investment opportunity with AHP's fund re-openingWhat a potential upcoming housing downturn will mean for AHP and distressed mortgage note investors
About Jorge Newberry:
Jorge is an expert in investing in mortgage notes whose accomplishments include:
Jorge Newbery is an author, entrepreneur, CEO and investor. He is the Chairman and CEO of AHP Servicing LLC, which crowdfunds the purchase of non-performing mortgages from banks at big discounts, and then shares the discounts with struggling homeowners. Jorge is the Founder and Partner of Activist Legal, LLP, a DC-based law firm that facilitates default legal services, and the Founder and CEO of DebtCleanse Group Legal Services, a nationwide legal plan to help consumers and small businesses get out of debt without filing bankruptcy. A 2004 natural disaster triggered the financial collapse of Newbery's former business, leaving him with $26 million in debts he could not pay. Newbery rebuilt himself through AHP, sharing what he learned from his challenges to help families at risk of foreclosure stay in their homes. Jorge is also the author of Burn Zones: Playing Life's Bad Hands; Debt Cleanse: How To Settle Your Unaffordable Debts For Pennies On The Dollar (And Not Pay Some At All); and Stories of the Indebted.
Get Financial Clarity Today
If you would like to implement Privatized Banking, cash flow strategies, or alternative investments, so you can accelerate time and money freedom, we can help. We’ll review your situation to help you decide what moves are best for you.
To start the conversation, book a call with The Money Advantage advisors now.
Investing In Mortgage Notes Links & Mentions From This Episode:
American Homeowner PreservationBurn Zones: Playing Life's Bad Hands, by Jorge NewberryDebt Cleanse: How To Settle Your Unaffordable Debts For Pennies On The Dollar (And Not Pay Some At All), by Jorge NewberryStories of the Indebted, by Jorge Newberry
Thanks for Tuning In!
Thanks so much for being with us this week.
https://youtu.be/ivNjgBZM19Q
If you want to get your money to do the most, learn these essential keys to be your own bank. (NOTE: "be your own bank and the Infinite Banking Concept" does not mean that you are literally a bank or creating a bank, rather we mean emulating the idea of banking.)
Instead of being a saver who's a star-student customer of the bank, this is how you supercharge your savings to control capital, earn interest, and increase your cash flow as you model the banking system - the most profitable business model in the world.
So if you want to keep your money at your disposal and earn maximum returns at the same time (without having to take on more risk), check out the podcast episode right now!
In this podcast episode, you'll discover the three simple steps to be your own bank:
1: Keep cash reserves2: Own the reservoir3: Master the art of arbitrage
Table of contentsWhere Does Being Your Own Bank fit into the Cash Flow System?Be Your Own Bank Step #1 - Keep Cash ReservesBe Your Own Bank Step #2 - Own The ReservoirYour Money That's Not In a Reservoir You OwnThe Ideal Reservoir You Own: Whole Life Insurance Cash ValueBe Your Own Banker Step #3 - Master The Art Of ArbitrageThe Bottom Line for Every SaverShare the Love!
Where Does Being Your Own Bank fit into the Cash Flow System?
Being your own bank is a process of managing your cash flow so that you keep and control as much of your money as possible. This system is better known as Infinite Banking and is one step in your journey to time and money freedom.
That’s why we’ve developed the 3-step Business Owner’s Cash Flow System as your roadmap to go from just surviving, to a life of significance, purpose, and financial freedom.
The first stage is the foundation. You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable.
Then, you protect yourself with insurance and legal protection and Privatized Banking.
Finally, you put your money to work, increasing your income with cash-flowing assets.
Be Your Own Bank Step #1 - Keep Cash Reserves
Why do we model the bank? What do we want it to do for us?
As a customer of the bank, you put your money in the bank for safekeeping, between uses.
If you shift your lens and look at banking from the bank's perspective, you'll quickly learn why they're the most profitable business model in the world.
The banker stores your cash and pays you for the use of that cash.
Because the banker stores cash, that capital offers opportunities to offer financing that will be repaid at interest. This means that because the bank has capital reserves, they have opportunities to put their money to work.
Check out our article on modeling the bank to see all the benefits the bank gets.
So how can you store capital, so you can get the banker's benefits?
You have to start by keeping capital in your control. The way to accomplish this is to pay yourself first.
True savings is capital that you control.
What do we mean by control? This leads us to step #2.
Be Your Own Bank Step #2 - Own The Reservoir
The easiest way to see if you are holding your cash where you have control is to ask who is getting the most use of that capital? Who gets the guarantees, earns the interest and cash flow, and has access to use that money? Spoiler alert: usually, it's another person, bank, or financial institution.
You can think of all the money you earn flowing into your own reservoir. But, most often, it doesn't stay in your own reservoir for long.
When you spend it, either through your lifestyle, by making loan payments, taxes, or even saving where someone other than you has control of your money, your dollars flow out of your reservoir into someone else's.
Your Money That's Not In a Reservoir You Own
For example, when you make your mortgage payment, that check leaves your reservoir and enters the mortgage c...
https://www.youtube.com/watch?v=fJ-twP5XEkM
In today’s show, we’re interviewing Michael Cobb, Chief Executive Officer and Co-Founder of ECI Development. This real estate development company is building and financing inspired residences for adventurous souls in Belize, Panama, Nicaragua, Costa Rica. Prepare to expand your investor’s paradigm to consider diversifying your asset portfolio outside the US. Think resort-style living for the middle class, including private villas, tiny homes, vineyards, private islands, and agricultural land with timber.
Whether you’re interested in expatriation or expanding your investments, you'll gain a bigger worldview, and longer-term perspective of wealth creation.
Where Investing Fits into the Cash Flow System
Here at The Money Advantage, we are a community of wealth creators who are entrepreneurially-minded business owners taking control of our lives and financial destiny.
It’s not enough to make a high income. You have to keep more, protect that money, and finally, increase and make more through the right investing decisions.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It’s your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking. Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Today’s conversation will expand your education and paradigm of investing.
Who Is Michael K Cobb?
At the height of a successful career in the computer industry, Mr. Cobb left to pursue more pioneering opportunities in the emerging real estate markets of Central America. In 1996, he and his business partner formed a company, Exotic Caye International, to provide loans to North Americans purchasing properties in Belize, Honduras, and throughout the region.
As the need for capital outstripped the supply, the mortgage company was converted to an international bank under the jurisdiction of Belize. It continues to provide mortgage services, but has expanded its services to encompass the full realm of financial products.
Mr. Cobb also saw the need for a regional real estate company that would serve the Baby Boomer consumer with a North American standard product for the next two decades. He led the group into real estate development and created a holding company for several properties, including a resort on Ambergris Caye, Belize. In August of 2000, Exotic Caye purchased 3.5 miles of Pacific Beachfront property due west of Managua, Nicaragua. This master-planned community hosts world-class infrastructure, homes, and condominium units. In February of 2006, the ECI Development group acquired 1100 acres and 3km of coastline in Costa Rica, setting the stage for expansion into this popular market. Most recently, they merged their Belize property with a much larger parcel and have begun to develop 200 condominiums units on Ambergris Caye, Belize.
Additionally, Michael has spoken at hundreds of international conferences about real estate financing and development. He has acted as a consultant to The Oxford Club and gives counsel to various real estate projects throughout Central America.
Conversation Highlights
Investing internationally to diversify your portfolio geographically.The demographics of who is buying property through ECI development: 30% lifestyle, 30% pre-use buyers, and 40% investors.What you need to know about the buyer beware environment of investing outside a nanny-state.Investing in Latin America is like a time machine. You want to be in the path of progress.Long-cycle cash flow with teak timber creates generational wealth that pays out every 25 years.
Connect with Michael Cobb
This conversation barely touched the tip of the ice...
https://www.youtube.com/watch?v=RnzDMisQ5go
Infinite Banking has the edge over other funding methods because of the strategic use of whole life policy loans.If you’re new to the concept, let’s rewind to make sure we’re on the same page. Infinite Banking is a strategy of building up cash value inside of a specially designed whole life insurance policy. The cash value is a place to store cash that provides safety (your cash value won’t drop in value), growth (with guaranteed interest, plus non-guaranteed dividends), and liquidity (contractual access to use your money.)
When you want to access your cash value, rather than depleting your cash value by using it directly, you convert it to cash by borrowing against it. That means you don’t use your cash value; you collateralize it and use OPM (other people’s money) instead.
So, all of your cash value continues growing and compounding, even with an outstanding loan. This is why you can earn a return on the same money in two places at the same time.
Find out more about life insurance policy loans and why we use them here.
Today, we’ll dig into the process of how to take a life insurance loan and pay it back. We’ll de-mystify policy loans by talking you through the steps you’d take to move capital into usable cash in your bank account. And you’ll gain the confidence to use your policy to the fullest capacity to maximize all of your money.
Table of contentsWhere Do Whole Life Policy Loans Fit into the Cash Flow System?Whole Life Insurance’s Three Rates of ReturnThe Reason to Use a Whole Life Policy Loan: ControlThe Process of Taking and Repaying Whole Life Policy LoansHow Do You Request a Loan?What Happens to Cash Value with an Outstanding Loan?How Does Interest Accrue During a Whole Life Policy Loan?How Do You Repay a Policy Loan?What If You Don’t Pay Off a Policy Loan?Why Earning Interest Is Better Than Paying Yourself InterestStart Using Whole Life Policy Loans for Infinite Banking Today
Where Do Whole Life Policy Loans Fit into the Cash Flow System?
Loans are one small part of Privatized Banking, which is, itself, another step in a bigger journey to time and money freedom.
That’s why we’ve developed the 3-step Business Owner's Cash Flow System as your roadmap to go from just surviving, to a life of significance, purpose, and financial freedom.
The first stage is the foundation. You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable.
Then, you protect your money with insurance and legal protection and Privatized Banking.
Finally, you put your money to work, increasing your income with cash-flowing assets.
Whole Life Insurance’s Three Rates of Return
The power of whole life insurance comes from the three distinct returns it gives you: an internal return, an external return, and an eternal return.
The internal return is the growth of your money through interest and dividends inside the policy.
The external return is the growth on the outside investments when you put your cash value to work in other assets with policy loans, a process known as Infinite Banking.
And the eternal return is the death benefit that provides an ongoing legacy to your loved ones.
The Reason to Use a Whole Life Policy Loan: Control
You capitalize on the external returns by using policy loans as a funding source.
Using a whole life insurance loan boils down to one thing: control.
You have control because you have the guaranteed privilege of accessing cash up to the amount of your available cash value. That means you don’t need to meet any terms or qualifications. You don’t need to prove you can repay. There’s no credit check or scrutiny on what you’re using the money for.
So, it’s not a wait-and-see if you’ll get the money. If you request the loan, it’s yours.
Another layer of your control comes from the contractual right to control the terms of how and when you pay bac...
https://www.youtube.com/watch?v=sOOnaH1iC-M
In today’s show, we’re interviewing Dr. Joel Wade, of Mastering Happiness. Dr. Wade is an Author, Psychotherapist, and Life Coach who’s centered his work on happiness, and helping people live happier, better, and more effective lives. And we’re talking about true happiness and well-being, not simply the happiness of feeling good in a lucky moment of pleasure. Instead, happiness is a set of skills, a practice, and an attitude toward life that you can learn and apply in whatever circumstances you are in.
Where Happiness Fits into the Cash Flow System
Here at The Money Advantage, we are a community of wealth creators who are entrepreneurially-minded business owners taking control of our lives and financial destiny.
It’s not enough to just make a great income. You have to figure out how to keep more, protect that money, and finally, increase and make more through the right investing decisions.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It’s your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking. Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Today’s conversation will help you upgrade your mindset to be able to be a producer and creator of true life wealth, flourishing in every area of your life.
Who Is Dr. Joel Wade?
Joel F. Wade, Ph.D. is Marriage and Family Therapist and Life Coach, and the author of The Virtue of Happiness, and Mastering Happiness, and creator of an in-depth online course, A Master’s Course in Happiness, all drawing from the increasingly useful research in psychology in general, and positive psychology in particular; and his nearly four decades of working with people professionally. He has written regularly for a variety of publications, including The New Individualist, The Good Men Project, and the Beyond Wealth columns for the Oxford Club.
He’s also a world-class athlete, having won multiple national and world championships in water polo.
Dr. Wade enjoys teaching clear, practical skills and ideas that can be used immediately. He inspires his readers and listeners to take effective steps toward a more rewarding, joyful, and resilient life.
As a Life Coach, he works with people around the world and can be found at www.drjoelwade.com.
Joel Wade Conversation Highlights
What Is Happiness?
Happiness doesn’t mean a temperament and personality of cheerfulness. Rather, happiness is Aristotle’s eudaimonia, which means success at being human.Martin Seligman moved psychology away from treating symptoms, to the habits for creating a flourishing, happy, successful life. He also created the original research on learned helplessness.When you focus on what you’re aiming for, the problems become smaller in comparison, and you have more resources to tackle the problems with.The difference between being happy about life, vs. being happy about your circumstances. You can’t base life’s happiness on circumstances, because there’s a lot of external luck to that. Happiness is more a matter of being happy about your life and living in a way that’s congruent with your value system.Don’t be too attached to the outcomes or the score. Instead, take control over your own focus, attention, skills, and playing my best.Carol Dweck’s work on a fixed mindset vs. a growth mindset. With a fixed mindset, you aren’t an agent in your own success, and challenges become risks and threats. With a growth mindset, you celebrate challenges. Overcoming challenges and failures makes success and happiness that much more valuable. We need challenges that push us to expand and create more complexity in ourselves.
https://www.youtube.com/watch?v=SZpFzXjvYc4
There's one thing most people miss when setting up their goals for the coming year. And because of this little oversight, so many new years resolutions that started out as cheerful balloons dancing towards the sky become like coins slipping our grasp and clattering to the ground. That means that New Years resolutions can become frustrating and apathy-inducing, and cause you to live so far beneath your potential.Well, lucky for you, there's a solution that will help you start off the new year strong and accomplish way more than you had imagined. It's this new year planning secret every great entrepreneur knows.
As we transition into the new year - heck, a whole brand spankin' new decade - we wanted to bring you a personal message about how we close out one year and transition into the next with as much strength and intention as possible. We think this will be really helpful to you as you’re building a life and business you love and taking control of your destiny.
In this episode, we share our most important lessons from last year and how we’re using that as a foundation for success in the new decade.
The Clean Slate of a New Year
Ever since I was a kid, I loved waking up to freshly fallen snow. The world was covered in white with no tracks, disruptions, or flaws. It was a fresh, clean slate.
That’s how I feel about the new year. It's this clean slate that creates an expectancy, like anything is possible. It’s a new beginning, a new start, and new goals.
Purpose Instead of Resolutions for the New Year
But instead of getting caught up in the buzz of new year's resolutions that usually are broken and fail within the first 24 hours of the new year, how do you stay in abundance and the right mindset?
How do you set your intentions and purpose for the new year so you’ll succeed?
Start with this New Year Planning Secret Every Great Entrepreneur Knows
Don't start by listing goals.
First, honor last year's successes.
Why?
It's way easier to win again at a bigger thing when you're already winning.
As Dan Sullivan coaches, this process helps you to stay positive by looking backward at how far you’ve come. It's like pulling back the slingshot to give maximum thrust and force to the rock you're shooting.
How do you do that?
Whether last year was a triumph that exceeded all of your goals, or whether you are still reaching for goals that you haven’t yet mastered, honor and value last year. The big and small triumphs along your journey have given you strength, lessons, and chiseled your character. They've laid the foundation for everything you can and will create in the future.
This gives you a sense of closure, meaning and purpose about last year.
And then, last year becomes a foundation that propels you into the new year as a better, stronger, kinder, wiser, and more successful person.
Since this life is one long story, this is how you finish well in the middle of the journey.
Our Year End Reflection Tradition
In the Marshall house, part of our ritual and tradition at the end of every year is to reflect on the last year, gain insight, and then get clear on the next year.
Start With Gratitude
It’s critical to start with gratitude. Gratitude paves the way to focus on the good stuff and invites more of it into your life, because you’re in the right mindset to receive more.
Take Inventory of Last Year
Then, we take inventory and write down all of our major life moments over the last year.
Accomplishments, wins, defining moments, big decisions, new things we started, things we ended. High-quality conversations, enriching relationships, leaps of faith, answered prayers.
We open our calendars, emails, text feed, facebook, and notes to help us really remember everything.
It's a journey down memory lane that's so invigorating because of the focus on what was good. And before we know it,
https://www.youtube.com/watch?v=ATfbEBmtzjE
What is the perfect funding ratio between base premium and the paid-up additions rider (PUAs)? You may be surprised to discover that this question comes up often in our one-on-one conversations with people who want to implement the Infinite Banking Concept personally. And since whole life policy design is important enough to discuss one-on-one, it’s relevant enough to dedicate some airtime to answering this question upfront.
In this article, we dig into the more technical design of a whole life insurance policy. We’ll have a candid conversation about why we design whole life policies the way we do, specifically regarding base and paid-up additions premium.
Instead of looking at it so closely that your eyes start crossing, you’ll zoom out. Then you'll get the best big-picture and long-term perspective.
If you’re in the consideration stage, this will matter a lot to you. If you’re still doing research, it will direct your attention to what to think about.
You won’t have to merely trust someone else to lead you to your goal. You’ll be more in control of the process of becoming a Infinite Banking user because you’ll be empowered with understanding.
Table of contentsDoes It Work vs. How It WorksBase Premium vs. Paid-Up AdditionsWhere Does Whole Life Insurance Fit into the Cash Flow System?Privatized Banking Introductory ResourcesThe Art and Science of Policy DesignWhat Are Paid-Up Additions (PUA)?Base vs. Paid-Up Addition PremiumTo Understand Long-Term Cash Value Growth, Follow the DividendsDividend Rates Over TimeDifferences Between Mutual Insurance CompaniesDividend Application to Base vs. Paid-Up AdditionsPUA Rider and Policy Design ConsiderationsPremium Payment FlexibilityPolicy UtilizationThe Big Shift: Policy Performance More Important Than Policy DesignStart Your Whole Life Policy Today
Does It Work vs. How It Works
You may be more of a conceptual person, like me. For instance, I want to know the car is safe, reliable, and drives well. I don’t need to know anything about what happens under the hood as long as it serves me well. Same with a computer. I don’t want to know anything about circuit boards and coding. I just need to be able to use it to write, record, store photos and videos, and use the internet.
If you’re the person who wants to look under the hood and understand how everything works, this episode is for you. This is more about how high cash value whole life policy design works, rather than what it does.
Whole life insurance policy design is like the levers on a soundboard. It’s nuanced and technical, a dance between art and science.
However, whatever your style, it helps to keep the main point in focus. More than understanding the mechanics and adjustments of how it works, you should pay close attention to the resulting performance. This is like turning your attention from the controls on the soundboard to the quality of the sound produced. The outcome is what matters. Your ultimate goal is to deliver a moving and transformative ambiance and experience for the person listening to the music.
However, if you don’t understand the concept, the details don’t matter. And usually, if you do understand the concept, the details don’t matter.
Base Premium vs. Paid-Up Additions
You could think of base and paid-up additions premium as the two opposite ends of a sliding scale. On one side, you could have a life insurance policy with all or mostly base premium. At the other end, you could have a whole life insurance policy with mostly paid-up additions rider premium payments (10/90 Premium Split & Blended Term PUA Rider Risks, with Rodney Mogen).
Whole life insurance policies can be designed with all base and no paid-up Additions rider (PUA), and on the other end of the spectrum, they may have 10% base and 90% paid-up additions. And you'll also see just about everything in between.
https://www.youtube.com/watch?v=PxjK_XqwRdo
Nnene Mbonu, a real estate investor and one of our clients, is hacking her way to wealth with Privatized Banking. Find out how in this episode.
Nnene Mbonu has worked in the oil and gas industry for 18 years and seen the cyclical nature of the industry. After facing two layoffs in the span of two short years early in her career, she knew that she wanted to be in control. That’s when she began investing in real estate.
Nnene has always been a researcher who isn’t afraid to take calculated risks and do things differently than everyone else. When she came across the Infinite Banking concept, specifically as a tool to build business and investment capital, she knew she wanted to find out more.
Nnene would encourage anyone to do their research and then move forward. We’re all given a unique set of circumstances, personality, and family. The best thing you can do is to educate yourself and then take the best action you know to do right now. Then, continue to grow, innovate, and evolve as a person.
You’ll hear about how Nnene is using Privatized Banking for herself and her family. But more than that, you’ll see she’s developing her #1 asset – herself – and building a legacy of wisdom for her children and the people she loves most.
Nnene Mbonu Conversation Highlights
Nnene shares her one regret that they paid off the mortgage first, instead of putting the cash into a policy. It’s far more difficult to get dollars out of the four walls of your home than to access policy cash value.How Privatized Banking helps you get more than one use out of your dollars. It provides a death benefit, and cash value you can recycle over and over again.Having the cash value provides you options on accessing capital, including borrowing from the life insurance company, or borrowing from another lending institution who recognizes the liquidity of life insurance cash value.When you borrow against your policy, you’re not only paying yourself back, you continue to earn interest, even while you pay interest for the cost of capital. This allows you to be your own banker, control capital, and earn uninterrupted compound interest.Why Nnene is not stopping with just one whole life policy. She is continuing to build an ecosystem of life insurance policies in her family to create business and generational wealth.Why she’s not only modeling financial control for her kids, but also requiring them to expand their financial literacy for themselves with books and podcasts.Nnene Mbonu thinks of using whole life insurance as hacking your wealth – taking those powerful steps that up level your game and give you an unfair advantage.
Start Hacking Your Way To Wealth Today
To personally implement Privatized Banking or discover cash flow strategies to keep and control more of the money you're making, book a Strategy Call.
You'll find out the one thing that you need to be doing right now to accelerate your path to financial freedom.
Success leaves clues. Model the successful few, not the crowd, and build a life and business you love.
https://www.youtube.com/watch?v=ZbMjI2kSfxM
In today’s show, we highlight Dr. Lee and Candice Matthis and their inspiring story.
Dr. Lee Matthis is a chiropractor working with Tuck Clinic, a large practice in southwestern Virginia, and plays a significant role in improving the profession and healthcare in general through consulting and clinic management and his work with the UVCA. His wife, Candice, recently transitioned from full-time homeschooling mom to an account representative role with Home2Close, a real estate software company that automates the closing process for real estate professionals. She’s also an up-and-coming podcaster with twoalphagals, helping others understand and navigate alpha-gal, a life-altering, tick-bite-induced allergy.
Lee and Candice love personal development, minimalism, slow food, Hokies games, and creating high-quality experiences with their family.
After achieving a level of financial success and status, including a 4,000 square foot home, two luxury cars, and a lot of “stuff,” Lee and Candice realized that they were still unfulfilled, out of control, and living paycheck to paycheck.
They began redesigning their lives by asking a poignant question in every area of their life: “Is this serving us?”
They wanted more control in their lives, and that required hard decisions and giving up the external display of success, so they could begin crafting the life that they wanted. A life filled with rich experiences to treasure, and that would give them the ability to stop trading time for money in the future.
Listen to their why, their decisions, their hard choices, and the beautiful outcomes from intentionally focusing their life on what really matters.
You’ll hear about how they’re using Privatized Banking. But more than that, you’ll see how they’re maximizing the usage of their money by taking control of their financial life, so they can produce real wealth that lasts.
Where Does Privatized Banking Fit into the Cash Flow System?
Privatized Banking is one of the most important parts of your entire Cash Flow System. However, it’s just one step in the bigger journey to time and money freedom. You need all the pieces in place to produce wealth systematically.
That's why we have created the 3-step Business Owner's Cash Flow System. It's your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first stage is the foundation. You keep more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection and Privatized Banking. Finally, you put your money to work, increasing your income with cash-flowing assets.
Dr. Lee and Candice Matthis Conversation Highlights
The critical mindset shift from being consumers to truly enjoying their lives.To start designing a life you love, intentionally decide your life philosophy and principles, then determine the accompanying strategies, and finally, find products that carry out those strategies.How having hard conversations with your spouse allows you to get to the next level.The impact of Parkinson’s Law, causing you to spend everything you make, unless you intervene and redirect the course of your life to another purpose.How they got into cash-flowing commercial real estate ownership as a first step to working smarter, not harder.How their house was more of a liability than an asset.The opportunity cost of a $1,500 car payment over time.The lack of control in a traditional IRA.The journey and decisions underneath building true, sustainable wealth.How they are challenging themselves to improve their stewardship, and teaching their three children to do the same.How they have been able to leverage their assets by using whole life policies on their children to purchase a car for their son.Creating freedom to invest in assets has come from the choice to maximize the us...
https://youtu.be/IPx67iyWcWY
Les McGuire reveals a timeless truth about the economic value of certainty that goes back as far as scripture. It’s that to have the highest chance of flourishing, you need certainty, guarantees, and stability.
In Jesus’ parable of the wise and foolish builders, the wise man’s house on the solid rock withstood storms. He was able to go on with life the very next day and continue his livelihood of exchanging in the marketplace.
However, the foolish man’s house on the shifting sand “collapsed with a mighty crash.” He would have had to spend time, money, and energy sorting out the mess, rebuilding, and finding a way to live in the interim.
But the storm didn’t cause the advantage for the wise man – it just revealed his leverage point. The wise man’s confidence came from certainty in his life.
What if there had never been a storm, floodwaters, and winds to test the quality of their workmanship? Can you imagine the character and mental state of each builder?
The foolish man may have put a brave face on, but he probably would have walked around every day with a subconscious concern that what he had wouldn’t last. There would have been an undercurrent of cowardice and insecurity in all his dealings. That maybe his shortcuts would be found out.
Meanwhile, the wise man would have had internal confidence that graced his affairs, knowing that he was secure. He was upright, fair, produced quality work, and probably was highly respected and trusted in his circles.
The Economic Value of Certainty
In The Economic Value of Certainty, a thought-provoking masterpiece, Les Guire outlines these truths and calls us to our greatest potential. While the article is about whole life insurance, it's more about why the certainty it creates is so empowering.
When you have certainty serving as the bedrock of your financial life, you conserve and maximize, rather than waste the precious limited resources in your life.
Les is a financial thought leader who died in 2006. However, his ideas and bold, deep thinking continue to influence the industry.
In today’s discussion of this article, we’ll give you an internal guidance system to help you think about your financial life in a way that gets the best results across the widest range of circumstances. You’ll expand your vision about your financial objectives and what you want out of life.
Where Does the Economic Value of Certainty Fit into the Cash Flow System?
Choosing certainty starts in your mindset. It then helps you select financial products that maximize your resources and help you fulfill your greatest potential.
However, certainty is an undercurrent of the bigger journey to time and money freedom.
That's why we have created the 3-step Business Owner's Cash Flow System. It's your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first stage is the foundation. You keep more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection and Privatized Banking. Finally, you put your money to work, increasing your income with cash-flowing assets.
With whole life insurance, especially when used for the Infinite Banking Concept, you can weave certainty into your cash flow system and improve every other area of your financial life.
The Economic Value of Certainty Article Highlights
Economics is about scarce resources. Our limited resources extend beyond money, to include many intangibles.
These include assets such as time, effort, focus and attention, hope, faith, love, integrity, desire to contribute and excel, and willingness to take risk. Les, McGuire
Economic “costs”, therefore, are not limited to money, but rather any resource which is under-utilized …Les, McGuire
It is entirely possible (and actually quite common) for the disclosed ...
https://youtu.be/g8CJGk3IVNk
In today’s show, we’re interviewing Anna Kelley. She's a real estate investor who has created time and money freedom. And, she's the founder of REI Mom, helping women create a legacy through real estate investing.
Where Real Estate Fits into the Cash Flow System
Here at The Money Advantage, we are a community of wealth creators taking control of our lives and financial destiny.
It’s not enough to just make a great income. You have to figure out how to keep more, protect that money, and finally, increase and make more through the right investing decisions.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It’s your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking. Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Today’s conversation will help you look at your investing in a way that is aligned with your unique abilities, produces value for people, and puts your money to work earning a cash flow return.
Who Is Anna Kelley?
Anna personally owns and manages a multi-million-dollar rental property portfolio and has ownership in over 2000 units as both an active and passive investor. She is a General Partner, Sponsor & Asset Manager for large multi-million-dollar multifamily real estate acquisitions, and through Zenith Capital Group, actively seeks out the best opportunities for her partners and investors.
Anna currently has $52M in assets under management.
She is also a frequent guest on Real Estate Investing podcasts, speaks at REI groups around the country, is an Amazon #1 Best Selling Author, and runs a local meetup group for Women in Real Estate.
Conversation Highlights
How Anna Kelley started out in private banking, selling stocks, bonds, and mutual funds. But realizing that her very wealthy clients made their money in real estate put her on a path to build true wealth.Anna’s story of starting out in real estate with a failed flip, and then becoming a landlord before a homeowner.The personal hurdles she navigated as she realized she couldn’t rely on a W2 job or entrepreneurship. Instead, her family needed passive income from assets.How she navigated the market cycles and lending requirements over the past 16 years.Anna’s personal why to be able to be home with her kids allowed her to transcend obstacles.The creative financing strategies Anna used to continue buying real estate, even when banks wouldn't lend to her.How she and her husband learned to be resourceful landlords when they were hundreds of thousands of dollars in debt and had no money.How Anna Kelley has honed her niche through testing, trying, and experimenting with various neighborhood classes, and why it’s so important to understand not only projected income from a property, but also balancing growth and preservation.Transitioning from active to passive income.Why you should use leverage for production.How she’s working to find, finance, and syndicate large multifamily apartments.Why the stock market is overvalued, and a correction has to happen. Real estate has a real value. There’s true, intrinsic value in property, but the stock market is primarily valued based on consumer sentiment.Why it's so important to master your money, so money doesn’t master you.
Find out More About Anna Kelley and REI Mom
Connect with Anna Kelley on FaceBook, at Anna REI Mom Kelley, and find her group Creating Real Estate Wealth That Lasts with REI Mom. You can also email her at info@reimom.com.
Get Financial Clarity Today
If you would like to implement Privatized Banking, cash flow strategies, or alternative investments, so you can accelerate financial freedom,
After seeing an upward trend in the markets over the past decade, you may be concerned that we’re at the top of the market cycle. Many people are feeling the volatility and uncertainty. How do economic factors direct your decision-making? Should you stay in for the long haul and ride it out?
In today’s show, we address these concerns and show you how to not lose sleep and not lose money.
You’ll stop feeling the impending sense of crisis and be able to focus on building your wealth goals, regardless of the market, instead.
Table of contentsWhere Does Investing Fit into the Cash Flow System?Market CyclesCurrent Market EnvironmentAll-Time HighsVolatilityWhat's Ahead?How to Not Lose MoneyMaximize Safety and GuaranteesStart Creating Time and Money Freedom Today
Where Does Investing Fit into the Cash Flow System?
We’ve developed the 3-step Business Owner's Cash Flow System as your roadmap to go from just surviving, to a life of significance, purpose, and financial freedom. The first stage is the foundation. You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection and Privatized Banking. Finally, you put your money to work, increasing your income with cash-flowing assets.
Investing is part of stage 3. It's here that you select an investing strategy that puts you in control.
Market Cycles
Just as there are healthy cycles in biology and farming, the market follows a cyclical pattern.
Wyckoff theory describes the four phases of the market cycle as accumulation, mark-up, distribution, and decline.
To profit, you would want to buy during the mark-up and sell at distribution. But that requires an intimate understanding to be able to predict exactly where where we are in the cycle.
You would also do well to understand the Austrian business cycle and how it impacts access to capital.
Current Market Environment
We’re now seeing all-time highs from a decade-long bull market, along with volatility.
All-Time Highs
Today, the S&P 500 trades at a cyclically adjusted price-to-earnings ratio (CAPE) of 31.2. There are only two times in history that the CAPE has been materially higher: the 1920s market bubble and the 1990s market bubble – both of which preceded not just stock market corrections, but full-blown bear markets.https://www.kiplinger.com/article/investing/T052-C008-S001-is-a-stock-market-correction-in-the-cards.html
“Stocks are expensive by virtually any metric you want to use,” says John del Vecchio, noted short seller and co-manager of the AdvisorShares Ranger Equity Bear ETF (HDGE). “The price-to-sales ratio for the S&P 500 is higher today than during the 1990s dot-com mania. Price-to-book ratio, dividend yield, Tobin’s Q … Pick any of these broad market metrics, and they’ll tell you the same story. Stocks are priced to deliver lousy returns over the next decade.”https://www.kiplinger.com/article/investing/T052-C008-S001-is-a-stock-market-correction-in-the-cards.html
Volatility
This CNBC article gives a good synopsis of the market and economic factors underlying the current volatility.
What's Ahead?
Who knows for sure?
While there’s no way to predict what the market will do in an exact future timeframe, the highs are usually followed by lows.
... the stock market will continue to be essentially what it always was in the past, a place where a big bull market is inevitably followed by a big bear market. For every "bull market" there MUST be a "bear market."Ben Graham, father of the investment management profession, in 1959
A possible sign of the times, one of the strongest performing stocks of all time, General Electric, froze their pension in early October 2019.
“Returning GE to a position of strength has required us to make several difficult decisions, and today’s decision to freeze the pension is no exception,
https://youtu.be/wymV-ro4P_w
In today’s show, we’re interviewing Bob Fraser, Co-Founder and CFO of Aspen Funds. Aspen Funds operates several private investment funds in real estate notes for accredited investors, offering a real estate backed opportunity with low volatility, high returns, and comparatively high liquidity.
Where Alternative Investments Fit into the Cash Flow System
Here at The Money Advantage, we are a community of wealth creators who are entrepreneurially-minded business owners taking control of our lives and financial destiny.
It’s not enough to just make a great income. You have to figure out how to keep more, protect that money, and finally, increase and make more through the right investing decisions.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It’s your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking. Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Today’s conversation will give you a closer look at real estate notes as an alternative investment option for accredited investors.
Who Is Bob Fraser?
Bob Fraser is on a mission to help investors take advantage of one of the most effective and overlooked avenues of real estate investing: residential mortgage notes.
As Founder and Principal of Aspen Funds, Bob has purchased more than 1,000 mortgage notes, earning double-digit annual returns without the risk and volatility of traditional investing options.
Conversation Highlights
Bob’s background starting a tech firm, raising venture capital, then getting caught in the tech wreck and losing everything that caused him to want more control and to be in the driver’s seat of his investing.Aspen Fund’s four funds (three income funds and a growth fund) for investors.The income fund buys mortgage notes at significant discounts, becomes the bank, collects payments, and pays 8.5% annualized return to investors. When the borrower refinances or sells the house, Aspen Funds is paid the full amount, earning capital gains returns as well.The pool currently has 307 notes, and with average of 3 – 6 paying off every quarter, the cash provides an internal liquidity program for investors.Investors can invest with qualified and non-qualified money, with no UBIT generation.How being a lien-lord instead of a landlord can pay higher returns without the management challenges.The funds are very tax-efficient. Even outside of a tax-deferred vehicle, the growth fund generates about 80% of its returns as long-term capital gains. The income fund is about 30% long-term capital gains.Why Bob Fraser prefers second-position liens.How they underwrite risk to determine the value of each note.This investment is for accredited investors with a minimum investment of $50K.A real example of how Aspen Funds sources notes and generates yields.A candid discussion of the housing price risk and recession risk.Residential mortgage notes are an alternative investment uncorrelated with the stock market.Why Bob doesn’t think we'll have a recession in the next 1 – 2 years, and why he’s bullish on the housing market.Aspen’s Net Asset Value isn’t volatile, because it’s set by accounting, not speculation price based on the market.The sources Bob reads for hours daily to make decisions.
Find out More About Bob Fraser and Aspen Funds
Get Aspen Funds’ webinar for more information on their funds, as well as Bob’s economic forecast newsletter.
Get Financial Clarity Today
If you would like to implement Privatized Banking, cash flow strategies, or alternative investments, so you can accelerate time and money freedom, we can help. We’ll review your situation to help you decide ...
https://youtu.be/9xx_twfkmWY
Retirement seems top of mind in almost every financial endeavor in our culture. It’s this buzzword at the culmination of all your financial pursuits, as if it’s the thing we all must strive for, and the trophy of financial success. The endpoint. The goal. The place where we get when we have finally “arrived.” Financial success seems to mean being able to retire well. There are retirement plans, retirement savings, retirement communities, and retirement parties.Admittedly, it’s pretty alluring to imagine spending your time relaxing with your feet up, snowbirding, vacationing to tropical destinations, and playing golf.
But what if you are a business owner who’s spent your entire life building a business? You’ve called upon your inner strength at defining moments, evolved as a human, elevated others through your service, and crafted your legacy. Your business is an extension of you and your best work.
How do you think about retirement if you’re a business owner? Is retirement good for you?
In today’s conversation, we unpack:
The history of retirementWhy retirement is a limiting end goalWhat to do instead of retiring
We’ll show you why you’re better off without retirement and why your whole life will be richer, more fulfilling, and far more enjoyable without retirement.
You’ll stop measuring, evaluating, comparing, and pacing your financial life against an outdated construct.
With a renewed perspective, you’ll stop feeling frustrated and behind, and able to live more fully.
Even if you’re not a business owner, this conversation will provide the perspective adjustment that can improve the quality of your life.
Table of contentsThe Definition of RetirementWhy Retirement Is Not the Same Thing as Time and Money FreedomWhere Does Retirement Fit into the Cash Flow System?Retirement Is an Outdated ConceptWork Is Inherently ValuableYou are a Producer, Not a ConsumerYour Income Potential Increases with Age and ExperienceRetirement Is Bad for YouRetirement Is a Limiting End GoalHow to Think About Retirement If You’re A Business OwnerStart Building Your Cash Flow System Today
The Definition of Retirement
To have an honest conversation about retirement, we first have to define our terms. Then we can make sure we’re on the same page with what we mean by the word retirement.
The retirement that we’re discussing today is the idea that, before the age of 65, you’ll work during your prime working years. Then, at the age of 65, you should be able to end employment and spend the rest of your life living off of what you produced during your previous years.
Why Retirement Is Not the Same Thing as Time and Money Freedom
While retirement may sound equivalent to financial freedom, it’s not. Retirement is like an imposter of time and money freedom that gets you to veer off course and never end up where you wanted to go.
Time and money freedom is the point where you’ve created financial freedom by having cash flow from your assets that surpasses your living expenses. That means that to buoy your lifestyle, you no longer need to work actively. Here, your investments, rather than your personal time, are what provide your income check.
Now, when you reach that point, you get to choose what to do with your time. Could you “retire” and quit working at that point? Sure! But should you retire? No way!
The real question we’re answering today, is this: should you stop working just because you can? More literally, should you spend part of your life working to earn the right to not work during the latter part of your life?
Where Does Retirement Fit into the Cash Flow System?
The short answer is, it doesn’t.
In truth, retirement doesn’t fit in the cash flow system. It’s not a part of creating cash flow. It’s not the destination. In fact, if retirement is your why and what you’re lining up everything else to reach,
https://youtu.be/9z9uvl23YH4
In today’s show, Todd Langford joins us to dig deeper into Indexed Universal Life. He is the CEO and developer of Truth Concepts financial calculators, better known as a financial Truth Teller. In this valuable conversation, we uncover the fundamental uncertainty of indexed universal life insurance further.
Recently, we had a conversation about the risks of Indexed Universal Life. I know this isn’t a popular view. Indexed Universal Life policies appear attractive because of the widespread perception of their safety and growth rate. That’s why it’s more critical than ever to talk about the warning lights to ensure you have the information to make the best decisions.
Because it doesn’t matter how great something looks on the outside. If it’s just a façade, but the structure is unstable, wouldn’t you want to know? If these policies start great, but decline and grow progressively weaker with time, wouldn’t that be something you’d like to know upfront?
Imagine buying a car, if you drove it off the lot in pristine condition, but the breaks, the axle, the engine, and even the body of the car started to deteriorate rapidly. If it was known that the car’s useful life was uncertain at best, and the engine and breaks had a 50% chance of weakening to the point of making the car undrivable in 3 years, wouldn’t you want to know?
The reason that we’re going to this length is that if it was just an opinion, it wouldn’t matter all that much. But the way to know if something is financially sound is to foretell its future mathematically. And there’s no one more qualified to do that than Todd Langford.
Where Life Insurance Fits into the Cash Flow System
Life insurance is a critical part of your financial life. However, it’s just one step in the bigger journey to time and money freedom. You need all the pieces in place to produce wealth systematically.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It’s your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking. Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Life insurance is part of Stage 2, protecting the wealth you’ve built. Not only does it provide the peace of mind of protection, but it can also be used as your cash flow management system.
That’s why it’s so important to make sure the policy you use can become a cornerstone of your wealth creation.
Who Is Todd Langford?
Todd Langford has been at the forefront of financial software development and training for over 33 years. In 1986, Todd was hired by Norman Baker, a successful financial advisor, to develop calculators that would “prove or disprove” the validity of certain financial strategies. Since then, he has been “Telling the Truth” and shifting paradigms about all things financial.
The calculators gave them a reliable way to compare strategies and test the soundness of ANY financial choice.
Todd has been an advocate of effective financial strategies, regardless of their popularity with Wall Street firms, the media, or investment gurus-of-the-moment.
Todd Langford Conversation Highlights
There are no deals in the insurance industry. Everything is a tradeoff between price and risk. You either have higher cost with lower risk, or lower cost with higher risk.Actuarial science is about property loss.A large risk pool means the insurance company can reduce the cost of premiums for everybody.In finance, the math is often accurate, but wrong, because of the assumptions behind the facts. Usually, financial analysis leaves out the critical piece of the time value of money.
Tax deferral may seem like the epitome of smart financial planning. But tax-deferred investments can be a tricky trap like the spiderwebs that caught Frodo in Lord of the Rings.
https://www.youtube.com/watch?v=u322ezhxotg
How should you think about retirement accounts if you’re a business owner?
In today’s conversation, we answer:
What is tax deferral?What are the underlying assumptions that make this advice so widespread and common?When should I pay tax now, and when should I defer tax instead?
Then, we’ll give you the most important questions to decide whether you should postpone tax. We’ll show you why business owners should think twice before using tax-deferred retirement plans. And, we'll talk about the one circumstance in which deferring tax could benefit you.
You’ll gain clarity to find strategies that work best in your particular circumstance, to achieve your objectives.
What if you’re not a business owner? This conversation still applies to you because tax deferral still works the same way. You’ll understand your financial options better and be more equipped to make decisions that put you in control.
Table of contentsWhere Do Tax Deferred Investments Fit into the Cash Flow System?What Is Your End Game?Two Financial DestinationsWhat Is Tax Deferral?Pre-Tax Investment StrategyTax PostponementLoss of Control with Unknown Future TaxYou Pay More Taxes in the Future Than You Would Have Paid TodayThe Balance Isn't All YoursRetirement Accounts Only Work in Your Favor If You Take Out the Money at A Lower Tax RateWill You Be in a Lower Tax Bracket in the Future?Your Future Taxable Income Could Likely Be Higher Than Today’sThe Future of Tax Rates Is … Not Very Stable or PredictableChanging Tax ThresholdsIs Now A Good Time in History to Be Deferring Tax?Are You Sure You’ll Be in a Lower Tax Bracket in the Future?Decide if A Retirement Account Is for YouAsk Yourself These Questions to Find Out if You Should Defer TaxesGain Clarity to Make The Best Decision For YouStart Building Your Financial Freedom Today
Where Do Tax Deferred Investments Fit into the Cash Flow System?
Selecting investment options and their tax treatment is just one step in the bigger journey to time and money freedom. You need to have all of the pieces in place to produce wealth systematically.
That's why we have created the 3-step Business Owner's Cash Flow System. It's your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first stage is the foundation. You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection and Privatized Banking. Finally, you put your money to work, increasing your income with cash-flowing assets.
Investing is part of stage 3. It’s here that you select the best opportunities that help you achieve your goals, as well as the tax structure surrounding those investment decisions.
What Is Your End Game?
Before you set out to determine the wisdom and validity of using a particular financial product or strategy, you first have to know your end goal.
That’s because there are no bad products. There are only bad strategies.
More specifically, some strategies won’t work to get you where you want to go. For instance, a train is a fabulous invention, but it can’t get you from Boston to Sydney, Australia.
You first need to know if you want to defer tax.
Two Financial Destinations
When it comes to financial goals, one destination is financial freedom, where you have passive income (income from assets) that surpasses your monthly expenses. When your income is from assets, you no longer need to work as a source of income. To get there, your strategy will need to include investing in assets that produce cash flow returns. To apply this strategy successfully, you become an active investor and invest in what y...
In today’s show, we interview Dustin Griffiths, tax strategist with Kings Tax and Accounting. We’ve had him on the show twice before because taxes are a key area that we see over and over again that business owners of all types are leaking money.
Let’s bring this into perspective for a minute. If you were overpaying your tax bill by $10K, $20K, or $50K because you didn’t know how to interpret the thousands of pages of the tax code, when would you want to know?
What could you do if you kept an extra $10K, $20K, or $50K of the money you made, instead of owing it in taxes?
And if it took a very special person to understand the tax code and be able to help you apply it proactively, so that you stop overpaying this year and every year going forward, how far would you go to find them?
We’re about to shorten your path to tax savings because Dustin has been putting more money back in business owner’s pockets for years.
Dustin’s experience is so valuable because it means he understands how to apply the tax code for specific types of business owners.
Today, we’ll cover strategies that apply most often to doctors, dentists, and chiropractors. These professionals have many commonalities in their business and tax structure that make specific strategies useful.
If you are a medical or alternative medicine professional, you’re about to be astounded.
If you’re not a doctor, dentist, or chiropractor, you’ll glean some key insights that could work for your industry as well.
A disclaimer here: Every person’s unique set of circumstances means that certain strategies may work in some cases but not in others. As with any financial education, talk with a professional to implement strategies that will work for you.
Where Taxes Fit into the Cash Flow System
Tax saving strategies help you pay the minimum legal tax this year and every year going forward. As a business owner, tax strategy is an essential part of keeping more of the money you make and increasing your cash flow. But, as critical as it is to control more of your money, it’s just one step in the bigger journey to time and money freedom.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It’s your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking. Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Today’s conversation fits in the first stage to help you find more money to keep by strategically shrinking your taxes.
Conversation Highlights
The blind side of tax deferral and the difference between deferring and saving taxToday’s low tax rate environment compared to top tax rates throughout US historyEntity structure and pay structure options to save self-employment taxesTax-free income for up to 14 days of rent using the “Augusta Rule”Employing your kids, up to the standard deductionHow to bump income down to meet specified service business requirements to qualify for the 20% flow-through deductionUsing cost segregation to accelerate depreciation on parts of a commercial property, increasing today’s deductionsProfession-specific strategies for doctors, dentists, and chiropractors
Connect with Dustin Griffiths of Kings Tax and Accounting
Check out Dustin's previous interviews here:
How to Pay Less in Taxes LegallyTrump's Tax Reform, What Entrepreneurs Need to Know
Find out how you can save taxes today. Call Kings Tax and Accounting at (801) 980-9495, or email Dustin directly at dustin@kingstaxllc.com to request a conversation.
Get Financial Clarity Today
If you would like to implement Privatized Banking, cash flow strategies, or alternative investments,
Investing in your business can be one of the most focused, strategic, and productive financial decisions you can make. If the environment and the indicators are right. That’s because your business is one of your best investments.
However, if you listen to the conventional perspective of typical financial planning, you’ll be led to believe just the opposite.
A recent conversation highlights this prevailing mindset perfectly. After speaking to a roomful of business owners, I talked with one successful business owner. He remarked,
“It’s risky to invest in your business. After all, most businesses fail, and it’s better to invest your money with people who know what they’re doing.”
He's not entirely wrong, and we're all entitled to our own opinion. However, this is a limiting belief that often holds business owners back from reaching their financial potential. It’s like they have each foot in two separate worlds. They’re building their business with their time, energy, and mental capacity to build a successful, thriving business on the one hand. But on the other hand, they’re hedging their bets wondering if it’s worth investing in, or whether it’s all going to collapse.
As a business owner, how do you build the real path to wealth? There will come a time when you must decide whether to invest in your own business or to put your dollars to work somewhere else. Should you invest in your business, or should you diversify? How do you think about your business in the grand scheme of building long-term, sustainable, extraordinary wealth?
In today’s conversation, we answer:
Should you invest in your business?Is it risky to invest in your business?What’s the best way to reduce the risk of investing in your business?
We’ll share our perspective to help you gain clarity and freedom to make financial decisions that align with your value system, congruent with your goals and objectives, and move you closer to time and money freedom.
You’ll gain confidence and peace of knowing you’re making the right decision of whether or not to invest in your business.
Table of contentsWhere Does Investing Fit into the Cash Flow System?Should You Invest in Your Business?Where Else Can You Put Your Money?Is it Risky to Invest in Your Business?What Is Business?How Can You Invest in Your Business?Why Most People Believe Investing in Your Business Is RiskyInvesting in Your Business Reduces Risk Because You Gain ControlWhat Insurance Companies and Banks Say About How Risky Business IsWhat Investing in Your Business is NotHow to Reduce Risk When Investing in Your BusinessInvest in Your Business with ConfidenceStart Building Your Cash Flow System Today
Where Does Investing Fit into the Cash Flow System?
Deciding where to invest is just one step in the bigger journey to time and money freedom. You need to have all of the pieces in place to produce wealth systematically.
That's why we have created the 3-step Business Owner's Cash Flow System. It's your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first stage is the foundation. You keep more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection and Privatized Banking. Finally, you put your money to work, increasing your income with cash-flowing assets.
Investing is part of stage 3. It’s the step where you turn your money into more by investing in the best opportunities that help you achieve your goals. Should one of those opportunities be your own business?
Should You Invest in Your Business?
First of all, in finance, there is never a blanket, one-size-fits-all answer. As with making any prudent and responsible financial move, it depends. Your unique set of financial circumstances, stage in business, and profitability largely determine the wisdom of investing in your business.
In today’s show, we interview Jon Michaels, VP of Portfolio Services at Renters Warehouse. Renters Warehouse is America’s largest, full-service real estate firm for Single-Family Rental homes. They offer listing, investing, and renting services all under one roof. Renters Warehouse believes that clients deserve a partner to help them execute on their investment strategy with ease. Their real estate investment services marketplace and hassle-free property management services can help you to take the next steps to financial freedom.
Where Investing Fits into the Cash Flow System
Investing in cash-flowing assets is a huge part of building time and money freedom. But, as important as cash flow income is, it’s just one step in the bigger journey.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It’s your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking. Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Who Is Jon Michaels?
Jon Michaels is a Vice President with Renters Warehouse, the first national real estate investment brand. He’s been serving owners and operators of investment real estate for nearly a decade.
Born and raised in Kansas City thirty-two years, Jon attended Washburn University. He went on to earn his MBA at Baker University and then got his real estate license shortly after.
Jon and his family relocated a few times with a company providing advertising solutions to multi-family owners and operators. Since 2017, he calls South Carolina home with his amazing wife, Jen, and three beautiful daughters, Stella, Elsie, and Lucille.
In 2017, Jon Michaels joined a software company that served single-family property managers. He then joined Renters Warehouse in 2019 as a member of their portfolio services team. Jon is a licensed broker, serving investors who both buy and sell portfolios of single-family rental homes nationally.
You can connect with Jon Michaels on most social platforms:
FacebookLinkedInInstagram
Conversation Highlights
About Renters Warehouse
Renters Warehouse has operations in 40 US markets. They manage more than 22,000 single-family rental homes for approximately 15,000 landlords and institutional investors.
Last year, the company acquired Own America, the first online single-family rental investor portal. The program that was built for Wall Street investors to acquire SFR portfolios has now become available for free to the average savvy RE investor.
The Renters Warehouse Investor
Renters Warehouse serves a few client profiles today: the accidental landlord, the savvy real estate investor, and the large funds deploying $20-$30M in capital per month in acquiring portfolios of SFR’s. Most recently, they've seen the rise of the midsize investor who owns anywhere between 25 – 2000 homes.
According to Noel Christopher of Renters Warehouse, the savvy real estate investor who owns 10 or fewer homes accounts for nearly 90% of the ownership of our industry’s inventory today.
Property and Portfolio Inventory
Renters Warehouse has portfolios of SFR’s exclusively listed mainly in secondary markets like Columbia, SC; Cape Coral, FL; Lafayette, LA; Memphis, TN; and Indianapolis, IN. New inventory is updated daily.
Net yields on these marketed portfolios range from 3 to 10%. This beats a lot of financial instrument returns that investors find today.
Investors can register for a free account and enter their real estate investment strategy and preferred buy-boxes. Then, they’ll be successfully matched with SFR investment opportunities real-time with emailed alerts and personal phone calls from the local market team....
https://www.youtube.com/watch?v=9FkwOp08REc
Indexed Universal Life Insurance can seem attractive. At some point in your Infinite Banking research, you’ve probably even heard about using IULs instead of whole life insurance. Consequently, we get a lot of questions about whether IULs are better than whole life. Usually, this is because the illustrated values are better than for whole life, with lower premiums. And there’s the appearance that you can’t lose money because of “downside protection and upside potential." Comparatively, whole life can look expensive and pretty boring.
However, IULs have risks that prevent it from being compatible with Infinite Banking.
These risks are causing many people to be in danger of losing policies they’ve paid into their whole lives.
We’ll expose the truth about IULs and show you the darker side of the inner workings of these life insurance policies.
And we’re not the only ones raising red flags about Indexed Universal Life. Despite the popularity of these policies, some of IUL’s dirty laundry has been coming out of the closet. The product itself has a reputation stained by lawsuits and even a warning by the state of New York outlining the dangers of IULs.
Table of contentsThe Truth About IUL RisksWhere Life Insurance Fits into the Cash Flow SystemWhat Is Indexed Universal Life Insurance?Crediting RateCaps and MinimumsMany Beliefs About Indexed Universal Life Insurance Are More Myth Than FactThe Truth About IUL RisksIUL Risk 1: Your Cash Value Account Can Go DownMinimum Crediting Rate Is NOT Net of FeesIUL Risk 2: Flexible Premiums Can Be Used Against YouAnnually Renewable Term Insurance Has an Annually Rising CostHigher Costs Slow the Buildup of Cash ValueIndexed Universal Life Premiums May Become Insufficient to Cover CostsPremiums, Cash Value, and Internal Growth Must Cover the Increasing Internal ChargesYou Might Have to Pay Additional Premium to Keep the Policy in ForceIUL Risk 3: You Can Lose MoneyIUL Risk 4: The Policy May Not Last Your Entire LifeBottom Line: Indexed Universal Life Policies Lack GuaranteesEnsuring Your Policy Will Work for Infinite BankingGuaranteed Death BenefitGuaranteed PremiumsPolicy EndowsGuaranteed Cash Value Dollar Amount, Not Guaranteed Interest RateStart Your Life Insurance Today
The Truth About IUL Risks
In today’s show, we’ll discuss the risks of IULs. Indexed Universal Life is a complex product with many moving parts. This conversation is not intended to be comprehensive or fully explain IULs. Instead, we’ll highlight the reasons why we don’t personally use them and almost never recommend them.
In a follow-up episode, we’ll talk with Todd Langford, the creator of Truth Concepts, to further dissect the truth about IUL’s mathematical and statistical faults.
Where Life Insurance Fits into the Cash Flow System
Life insurance protection is a critical part of your financial life. However, it’s just one step in the bigger journey to time and money freedom. You need all the pieces in place to produce wealth systematically.
That's why we have created the 3-step Business Owner's Cash Flow System. It's your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first stage is the foundation. You keep more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection and Privatized Banking. Finally, you put your money to work, increasing your income with cash-flowing assets.
Life insurance is part of Stage 2, protecting the wealth you’ve built. Not only does it provide the peace of mind of protection, but it can also be used as your cash flow management system.
That’s why it’s so important to make sure the policy you use can become a cornerstone of your wealth creation.
What Is Indexed Universal Life Insurance?
In today’s show, we have a “fireside chat” with a client who is using Privatized Banking to invest in real estate. Here’s a real-life example of using Privatized Banking as a 401k alternative. Why? To gain control, build wealth, and create protection for his family along the way.
Where Does Privatized Banking Fit into the Cash Flow System?
Privatized Banking is one of the most important parts of your entire Cash Flow System. However, it’s just one step in the bigger journey to time and money freedom. You need all the pieces in place to produce wealth systematically.
That's why we have created the 3-step Business Owner's Cash Flow System. It's your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first stage is the foundation. You keep more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection. Finally, you put your money to work, increasing your income with cash-flowing assets.
Using a 401(k) retirement plan
Chuck Fahs describes himself as an “Average Joe,” a “normal person.” He’s a mid-level exec in the packaging business. At 58 years old, he's been married for the last 34 years, and has three adult sons and two grandchildren.
Before he learned about Privatized Banking as a 401k alternative, there were a few things that were important to Chuck. He wanted to get the boys through college with minimal to no debt and have great family vacations to experience the joys that life has to offer.
He accomplished both goals.
Other than that, he just put away as much as he could and hoped to have enough when he wanted to retire.
To that end, Chuck had a good foundation of savings habits. He was a disciplined saver throughout his working career.
The tool he knew to use to accomplish this was 401k plans, so that became his retirement plan. He was dedicated, contributing to his 401(k) for most of his life, and even prided himself in never dipping into it along the way.
Introduction to a 401k alternative
As he was pursuing setting up a trust, Chuck was introduced to the Infinite Banking concept. It was intriguing to him, but he wanted to know more.
Because Chuck has always been a learner, pursuing knowledge and education to make the best decisions, he doesn’t make big decisions on a whim.
The way he saw it, he was going to put his money into equities through his 401k or into Privatized Banking. If he was going to make a change from what he was already doing, he needed a good reason.
He proceeded to do extensive research to understand more. He read Nelson Nash's book, Becoming Your Own Banker, along with other books and magazines, and listened to podcasts. And he even attended a seminar about Infinite Banking put on by Bob Murphy and Carlos Lara.
Weighing the benefits of each, he fully grasped that using Privatized Banking was a better way. That caused him to shift from contributing to 401k plans to funding a high cash value wholelife insurance policy instead.
Benefits of Privatized Banking vs typical retirement plans
Control!
Chuck's money was no longer tax-deferred, so he wouldn’t pay tax in the future.
He gained the ability to borrow against his cash value and still get paid interest and dividends on that money, essentially getting access to interest-free loans. Compared to the 401k, he’s getting uninterrupted compound growth vs. a 10% penalty if he took his money out early.
On top of that, the same money is also creating a death benefit too. Now Chuck can get his money working harder and producing income by investing in cash-flowing assets.
Chuck now owns multiple whole life insurance policies, including policies on his grandchildren. He’s used his cash value to purchase a cash-flowing turnkey rental property and is planning to buy another property soon.
Change is hard, even for people, like me, who get started on new things rather quickly. Our habits – the way we’ve always done things – end up running our lives, even when we’d like to choose otherwise.
We react defensively to feedback, even after committing to receive and apply it gracefully. We use poor judgment and overspend again, even though we’ve promised ourselves a million times to stick to the plan. Or we get jazzed about a new health and workout routine, only to hit the snooze button and then cave in when offered dessert.
So how do you truly apply a growth mindset, continually improve, and create lasting change?
Specifically, how do you change your money mindset to choose a different approach that is more conducive to building wealth?
In his article titled, Irrational Change: You Can’t Reason Your Way Out of Something You Didn’t Reason Into, Steven Handel reveals a change agent that works. He suggests that we should consider making changes irrationally, rather than by using logic.
The article points out a truth we all feel, but rarely act on. Since we didn’t pick our paradigms and worldviews by rational thinking, we won’t be able to shift them by applying the rules of logic either. Instead, we should use a much more irrational approach.
In today’s discussion of this article, we’ll help you think differently about change. With this insight, you can grow, become better, and build a life you love.
Table of contentsWhere Does Money Mindset Fit into the Cash Flow System?Why Logic Falls ShortChange Starts by Thinking About Your ThinkingAn Irrational Approach to Change … That Actually WorksCreate Financial ChangeCreate New ConvictionsTurn Your Mind into A Mental PlaygroundStart Building Your Cash Flow System Today
Where Does Money Mindset Fit into the Cash Flow System?
Deliberately choosing a successful money mindset is a crucial part of your financial foundation.
With the right thinking about yourself, your value, money, and human relationships, you’ll create and build wealth. But, with the wrong thinking, you’ll repel wealth, spin your wheels, and continue wealth-defeating habits.
However, your mindset is just one step in the bigger journey to time and money freedom. You need to have all of the pieces in place to produce wealth systematically.
That's why we have created the 3-step Business Owner's Cash Flow System. It's your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first stage is the foundation. You keep more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection and Privatized Banking. Finally, you put your money to work, increasing your income with cash-flowing assets.
Your money mindset is part of stage 1. Developing an abundance mindset, and taking control with prosperity thinking are what allow you to become the person that produces wealth.
Why Logic Falls Short
Jonathan Swift, late 1600’s Anglo-Irish author and Dean of St. Patrick’s Cathedral of Dublin, published this insight about 200 years ago. He said,
You cannot reason people out of something they were not reasoned into.Jonathan Swift
This insight holds true today. Even after centuries of psychology research, theory, and practice, we’re still recognizing the shortcomings of trying to change ourselves or others through logic.
Cognitive Behavioral Therapy has widespread acceptance as a popular and effective method of changing mental conditions and processes. The technique helps you identify faulty logic, reframe negative beliefs, and accept your thoughts. But ultimately, it’s a rational approach to change. And its ability to affect a paradigm shift and new way of being is rather limited because our minds are not often very rational.
Logic falls short because most people don’t consciously choose their current mindset and...
In today's podcast, we interview Jordan River. You’ll hear about how he turned a $50 deposit into $50,000 in online poker winnings in 12 months using GTO (game theory optimization). He’ll share how using the principles of GTO will help you grow your business.
Where Building Your Business Fits into the Cash Flow System
Investing in your business is one of your best investments because it’s what you know and can control. And turning your business into a cash-flowing asset is a big part of creating time and money freedom.
However, your business is just one step in the bigger journey to time and money freedom. You need good money habits to produce wealth systematically.
That's why we have created the 3-step Business Owner's Cash Flow System. It's your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection and Privatized Banking. Finally, you put your money to work, increasing your income with cash-flowing assets.
Who Is Jordan River?
Jordan River is a podcaster, entrepreneur, and semiprofessional poker player. Jordan has been working in media production for 15 years, and currently focuses on podcasting as his main medium.
His work in the personal development field includes shows like The Lifebook Podcast and The Mastering Happiness Podcast, with Dr. Joel Wade.
In 2018, Jordan turned semi-pro while having a strong year at Texas Hold’em. He continues to play daily, hone his game, and frequently donates 25% of his final table winnings to charities.
Jordan River is also the son of Jon and Missy Butcher, founders of LifeBook.
Jordan River Conversation Highlights
Poker tournaments are analogous to creating and running a business.It’s all about making the right moves and detaching yourself from the outcome. Whether or not an idea (or a poker hand) works out isn’t solely dependent on if it was a good decision. All you can do is make moves that SHOULD be +EV (expected value), and don’t worry about how the cards are dealt out after that.Focus on what you can control.To calculate beyond your capabilities, learn from people who know more than you, and use technology. Copy strategies that work and forget about the ones that don’t.Everyone is in the same pool. Some talented players fail, some foolish players succeed, and everything in between. If you don't get a good grasp on reality through studying outcomes and statistics, you're left with many powerful and often negative emotions. Then, you can develop superstitions and unhealthy beliefs.If you want to succeed next time you try your hand, focus on game theory optimal decisions. That's the only path to sustained success.Poker, like a business, is a balance of three aspects: risk, stake, and reward. Every action you make should yield a +EV formula (i.e., high risk, high reward, but low stake; Or high stakes and high reward, but low risk).Trust your instincts and exercise them. Logic and math get you very far, but sometimes they put you in a tough spot – a hard decision with no clear, logical answer. Here, you have to trust and rely on your instincts.Be charitable. Building relationships by helping others will supercharge you. And so will giving away some of your earnings.Have fun. They say when you stop having fun, you should stop playing poker. It’s the same in business. That doesn’t mean that you’ll have no stress or zero anxiety, but you HAVE to love it on some level.
Connect with Jordan River
You can find Jordan River and keep up on his poker exploits by following him on Instagram @jordanriverig.
Visit jordanriverproductions.com to find more about his podcasting work.
Start Building Your Cash Flow System Today
To personally implement Privatized Banking or discover cash flow strategies to keep...
https://www.youtube.com/watch?v=-2OYfn9u2g0
Locking in your exit strategy with a buy-sell agreement can create great certainty. The reason is that it will accommodate the continuity of your company in the broadest range of circumstances. Planning for your continuation when you or your co-owners exit is critical. It could mean the difference between ownership transition becoming the capstone of your success or a slippery slope to financial demise.
Table of contentsBusiness Prenup: Ownership and Control When a Co-Owner ExitsWhat If You Don’t Have an Exit Strategy?Tools and Ideas to Plan Your Exit StrategyWhere A Buy-Sell Agreement Fits into the Cash Flow SystemWhy Should I Plan for How I’ll Exit?OptionsCertainty and Peace of MindFair BargainingWhat Circumstances Should I Consider?What Are Buy-Sell Agreements?Do I Need a Buy-Sell Agreement?What Are the Options to Fund Buy-Sell Agreements?CashSinking FundA LoanInstallment PaymentsLife InsuranceHow Can A Life Insurance Policy Solve Buy-Sell Funding Problems?Stock RedemptionCross-PurchaseLLC Buy-SellBuy-Sell Agreements: How to Get StartedMultitasking Life Insurance to Indemnify Multiple Threats at OnceAdditional ConsiderationsBuy-Sell Agreements and Infinite BankingGetting Started with Buy-Sell Agreements
Business Prenup: Ownership and Control When a Co-Owner Exits
If you're in business with others, you may wonder what would happen if something happened to them, or you. What about when or if one of you wants to leave, retires, becomes disabled or physically or mentally unable to continue, or passes away unexpectedly?
We’ve talked about how you can compensate for losing key employees or owners with Key Man Insurance, but what about the ownership interests?
Maybe you’re the sole business owner at this point, but you hope to sell someday. If your company is built on your reputation, knowledge, and expertise, would a strategic handoff be better than an abrupt ownership change? Perhaps it would be better to hire well as a transition strategy. You might be able to transfer ownership slowly over several years, giving your client base time to build a relationship with the new guy.
What If You Don’t Have an Exit Strategy?
If you share the ownership of a company, your livelihood rests on its success. How do you make sure your family members prosper, no matter what happens to you or your co-owners?
Contingency planning is one of those things that so many people put off because it’s not an immediate concern. According to LIMRA, in 2015, 75% of US small businesses have not had their market value assessed by a business valuation expert, and 64% of US small companies don’t have a business continuation plan.
Planning for how you sell or transition can mean the difference between peace of mind or turmoil. When your business operations continue after losing an owner without missing a beat, you and your family will continue experiencing the financial rewards of everything you’ve built.
If the company struggles and suffers, it could mean the inability to fulfill contracts, unhappy clients, and dried up revenue. And this could cause financial strife for you and your family.
It’s worth thinking this through and planning for contingencies to fully experience the fruit of your labor, no matter when or how you or your business partners exit.
Tools and Ideas to Plan Your Exit Strategy
In today’s show, we discuss the buy-sell agreement – what it is, what it does, and how it works.
We'll answer:
Why should I plan for how I’ll exit my business? Planning for how you’ll exit your business allows for the orderly transfer of the ownership interest when a business partner leaves the company. Why should I plan for how I’ll exit my business? Planning for how you’ll exit your business allows for the orderly transfer of the ownership interest when a business partner leaves the company. What circumstances should I consider in setting up a buy-sell a...
In today's podcast, we interview Lane Kawaoka, the "engineer passively investing in real estate". He controls over 2600 units across ten states, and is the host of Simple Passive Cashflow. He recorded the show from Belize, where he was doing due diligence on some coffee and chocolate farms.
We're discussing his journey to financial freedom and passive investing secrets for the working professional.
Where Cashflow Investing Fits Into the Cash Flow System
Building income from assets is a big part of creating financial freedom. Because when you have enough income from your investments to cover your monthly expenses, you're financially free. However, cash flow investing is just one step in the bigger journey to time and money freedom. You have to have good money habits to produce wealth systematically.
That's why we have created the 3-step Business Owner's Cash Roadmap. It's your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection and Privatized Banking. Finally, you put your money to work, increasing your income with cash-flowing assets.
Who Is Lane Kawaoka
Lane Kawaoka is a Licensed Professional (PE) with a Masters degree in Civil Engineering with an emphasis in Construction Management. He also holds a Bachelors in Industrial Engineering, both from the University of Washington. As an engineer, Lane has managed over $230 million of capital construction projects in both the public and private sector. Aside from his day job, he controls two manufactured home parks and 15 apartment buildings, and one Assisted-Living Facility, totaling 2,600+ units in 10 US Markets.
Lane's passion project, SimplePassiveCashflow.com, is a free podcast and online learning resource in passive real estate investing. Working as a high-paid professional in corporate America, and frustrated by the traditional wealth-building dogma, Lane was compelled to inspire and mentor other working professionals on how to do real estate investing and build their portfolios. Lane urges other working professionals to get started by utilizing their highest and best use (their day job) to save for the 20% down payment for a conventional loan to acquire a single-family home rental. The Simple Passive Cashflow method is to only buy investments with a healthy cashflow buffer that can withstand a market downturn.
In addition to mentoring, Lane Kawaoka also partners with beginning investors who want to build their portfolio, but are too busy to handle direct investments. He uses his engineering mind, investing knowledge, and network to crowdsource due-diligence through the 2600+ members of the Hui Deal Pipeline Club. Together they have placed over $15 Million worth of capital.
Conversation Highlights
Lane Kawaoka's path to passive cashflow, starting with his first A-Class property, to building a portfolio with turnkey properties, to syndication and private placements.Ideal rent-to-value ratios should be at least 1% to invest for cash flow. (Rent to Value = Monthly rent/purchase price of the property)Typical conventional financing with Fannie Mae and Freddie Mac loans caps at ten properties per person.How working professionals can get started with investing, based on their financial situation.Building a portfolio quickly is about who you know. Build your network because that determines your net worth.Residential real estate is based on comps, while commercial real estate is about net operating income (NOI = income - expenses).If you raise rents by $100/property in a 100-unit apartment complex, that's $10,000 extra income/month = $120K extra NOI. Value increase = NOI/Cap rate, so $120K / 10% cap rate = $1.2 Million increase in value.The downside of using a Self-Directed IRA to invest in real estate is that y...
https://www.youtube.com/watch?v=M-GOcfA-HmI
Before you cancel your whole life insurance policy, read this first. No matter your reasons, you need to know what canceling means and why it's not usually your ideal move.
At some point, you saw the value in owning whole life. You could have sought out the protection for your family, the cash storage, the tax-advantaged growth, or the Privatized Banking element.
But now, you might be standing at a crossroads with a different perspective. If it's begun to feel like a burden and you're second-guessing your commitment to whole life insurance, you might be wondering how to break free.
Or you might be reading this before you purchase to guarantee that you'll never wind up with those regrets.
The good news is this: you never need to feel like you're stuck! Whole life insurance inherently has the flexibility to stick with you while accommodating your life changes. Rather than canceling your whole lie insurance policy if the going gets tough, you have several options to reduce payments or stop paying altogether, and still keep everything you love.
We'll walk you through the many other options outside of canceling your whole life insurance policy.
We'll answer:
What if my whole life policy isn't ideal for Privatized Banking?What if it's too much for me to keep paying?Do I have options besides canceling my whole life insurance policy?How can I stop paying so much, but still keep the policy in force?What are the pros, cons, and impacts of each option?Under what circumstances might I want to consider these changes in funding my policy?
This conversation will show you your options. Then you can stop feeling stuck and decide what's best for you to do. With the clarity, you'll be able to accomplish your immediate and long-term financial goals without sacrificing either.
Table of contentsWhere Whole Life Insurance Fits into the Cash Flow SystemWhy You Might Be Considering Canceling Your Whole Life Insurance PolicyWhat's So Great About Whole Life Insurance Anyway?ProtectionCash StoragePrivatized BankingDisability BenefitsPeace of MindCanceling a Whole Life Insurance PolicyYour Policy Is a ContractWhat Does It Mean to Cancel a Whole Life Insurance Policy?What Are the Downsides of Canceling Your Whole Life Insurance Policy?What Do You Get When You Cancel a Whole Life Insurance Policy?How Do You Cancel Your Whole Life Insurance Policy?Options Besides Canceling Your Whole Life PolicyPay from Policy ValuesUse a Policy LoanReduce to the Minimum PaymentReduced Paid-UpAvoid Losing Your Tax Advantages1035 ExchangeLife SettlementDiscover Your Life Insurance Policy Options
Where Whole Life Insurance Fits into the Cash Flow System
Whole life insurance is just one part of a bigger journey to building time and money freedom.
That's why we have created the 3-step Business Owner's Cash Flow System. It's your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks. Then, you'll protect your wealth with insurance, legal protection, and Privatized Banking. Finally, you'll put your money to work, increasing your income with cash-flowing assets.
Whole life insurance is part of Stage 2: Protection.
Why You Might Be Considering Canceling Your Whole Life Insurance Policy
If you're considering canceling your whole life insurance policy, we know you've given it some thought. You didn't buy it on a whim, and chances are, you're not attempting to cancel it on a whim either.
We talk with lots of people about their financial goals. Here are some of the reasons we've heard for canceling a whole life insurance policy.
Perhaps your policy has slow cash value accumulation and isn't ideal for Privatized Banking.
Maybe you bought it before you knew about the power of Specially Designed Whole Life Insurance.
Today’s interview is about turnkey investing with Done For You Real Estate (DFY). We’ll also discuss the tips, tricks, and secrets of turnkey investing, and reveal how every investor can replace their income with rental real estate.
Where Investing Fits into the Cash Flow System
As important as it is to invest in the right opportunities, it’s just one step in the bigger journey to time and money freedom.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It’s your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking. Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Who Is Kevin Clayson?
You may remember Kevin from March 2018 when we talked about his life-changing book, FLIP the Gratitude Switch. Go back and check it out here!
We like him so much that we’ve brought him back to talk about turnkey real estate, one of his other life missions.
Turnkey Real Estate Tips, Tricks, and Secrets
Stop swinging for the fences, and hit consistent singles in real estate.Don’t focus on hitting the home run so much that you’re not focused on serving the people right in front of you.It’s possible to cut your down payment in half when you are looking at investment real estate.Use a transparent turnkey provider who is upfront with their fees.Find a turnkey provider who is willing to introduce you to their contacts, including other clients.Work with someone who helps with more than the transaction, but is part of a comprehensive strategy.A real estate company has to be more than education.Real estate can make you wealthy, but use a conservative strategy to replace your income first.Always have a “sleep well at night” account of reserves.
Done For You Real Estate Conversation Highlights
The complexities of investing in real estate on your own vs. working with a turnkey team. A turnkey provider does the research and handles the rehab, marketing, placing tenants, ensuring profitability, and successfully managing the property. You still take title, ownership, and get tax benefits. It’s an opportunity to have a team of experts do the hard stuff while staying in control.Real estate is a long-term strategy. It’s not just buying for the benefits today, but for a whole bunch of tomorrows.Done For You Real Estate uses a short-term buy-and-hold approach. They don’t just help you purchase one property. They help you put together a game plan to know when that property will buy your next two, and when those two will buy your next four. Then, you'll get an annual review to analyze the property and market performance and consider the options of continuing to hold, refinancing, or selling to help clients make the right decisions.The focus of DFY Real Estate is not to get a transaction, but to help a client replace their income.Real estate, like Privatized Banking, allows you to velocitize your dollars. You can invest one batch of capital in a tangible asset with multiple profit centers: generating cash flow, tax benefits, and appreciation.Real estate and Privatized Banking put you back in control, in the driver’s seat.The power of leverage.Done For You Real Estate has access to multiple markets of Phoenix, Las Vegas, Indianapolis, Memphis, Orlando, and Charlotte, based on analysis of appreciation, cash flow, and purchase price. They place clients based on how much you have to work with, your time table, and how much income you need to replace. DFY Real Estate buys properties on-demand. They don’t warehouse homes, so they’re able to customize their inventory.
Find Out More About Kevin Clayson, or Invest with Done For You Real Estate
Go to ReplacingYourIncome.
https://www.youtube.com/watch?v=PzRUPmixpVQ
The Executive Bonus Plan can be the ideal “golden handcuffs” for the top talent you can’t afford to lose. In truth, associating long-term dedicated employment with slavery seems a bit archaic and melodramatic. We all know you can’t keep good people by holding them hostage. Instead, you’ve got to set the table that attracts them and makes them want to stay. That’s where the 162 Executive Bonus Plan rises to the occasion. It can help you serve up a scrumptious benefits package to find and keep the best people so your business can fulfill its mission.
In today’s show, we’ll discuss options for a deferred compensation package and fringe benefits that create a win-win for the employer and the employee. And we’ll show how the Executive Bonus Plan is a recipe made with cash value life insurance policies. That makes it the perfect way to offer something of future value that they’ll have to – and want to – maintain employment to get.
Table of contentsThe Competition Today’s Employers FacesFringe Benefits Help Employers Spend Less to CompeteWhere the Executive Bonus Plan Fits into the Cash Flow SystemDeferred CompensationThe Problems with Deferred Compensation for ExecsExecutive Bonus Plans solve the Problems of Deferred CompensationWhat Is an Executive Bonus Plan?You Both WinTax TreatmentLower RiskCash Value Benefits for Your ExecutiveThe Downside of Executive Bonus PlansHow Executive Bonus Plans Can Be the Ideal Golden HandcuffsCustodial Executive BonusThe Flexibility of Executive Bonus PlansSolving the Most Problems with One PolicyExecutive Bonus Plans and Infinite BankingGetting Started with an Executive Bonus Plan
The Competition Today’s Employers Faces
In a growing economy with declining unemployment rates, everyone’s hiring, but few people are looking for work. So, employees, who have their pick of employers, are in the position of leverage. Because the pool of available labor is smaller, it costs more.
So, companies have steeper competition to get the best employees. They have to be willing to pay more, and often will have to do quite the song and dance to win them over. That means paying more or offering more benefits and perks.
The competition businesses face is compounded by the current mindset towards employment in general.
Company loyalty is a lower priority than personal advancement. Long gone are the days when people worked for one company their whole life. A good person needs to feel engaged, appreciated, rewarded, and fulfilled. If not, there’s little stopping them from leaving in search of another place of employment where they’ll thrive.
Fringe Benefits Help Employers Spend Less to Compete
That also means that businesses are the ones with the most at stake if good people leave. They could lose contracts, revenue, and momentum when their intellectual capital walks out the front door. And it could be difficult, time-consuming, and expensive to find a replacement.
Therefore, the onus is on business owners to create an employment dynamic that great people want to be a part of. Offering high-quality fringe benefits is one way that employers can extend the handshake that turns into the ideal kind of loyalty.
Employers have to exert more effort upfront – and more dollars – to reach ideal candidates to fill their most important roles. And to keep them as long as possible.
In “HR speak,” this is attracting and retaining top talent.
Where the Executive Bonus Plan Fits into the Cash Flow System
Executive compensation and benefits are just one part of a bigger journey to building time and money freedom.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It's your roadmap to take you from just surviving financially, to living a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks. Then,
Wellings Capital provides access to value-add recession-resistant assets. They've accomplished this by partnering with expert operators in the storage facility, manufactured housing community, and multifamily apartment spaces. Wellings Capital funds offer accredited investors 15%+ returns without having to work so hard to find great individual deals.
Today’s conversation unpacks the current trends in these commercial real estate sectors. We’ll discuss their two accredited investment opportunities to help you achieve your objectives, whether your priority is income or growth.
Where Investing Fits into the Cash Flow System
As important as investing is, it’s just one step in the bigger journey to time and money freedom.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It's your roadmap to get from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking. Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Who Is Paul Moore?
Paul Moore is a second-time guest on The Money Advantage. In his July 2018 interview, Lessons from a Commercial Multifamily Investor, with Paul Moore, we talked about his background as a commercial multifamily investor. He shared his most important lessons: high risk does not equal high returns, the importance of giving, and knowing when to quit. You can grab more of his background and accomplishments there.
After entering the real estate sector, Paul completed 85 real estate investments and exits, appeared on an HGTV Special, rehabbed and managed dozens of rental properties, developed a waterfront subdivision, and started two successful online real estate marketing firms. Three successful developments, including assisting with the development of a Hyatt hotel and a multifamily housing project, led him into the multifamily investment arena.
Paul is now the Managing Director of two commercial real estate funds at Wellings Capital. He also co-hosts a wealth-building podcast called How to Lose Money and is a frequent contributor to BiggerPockets. Paul is the author of The Perfect Investment – Create Enduring Wealth from the Historic Shift to Multifamily Housing (2016), and has a forthcoming book on self-storage investing.
Wellings Capital Conversation Highlights
How hitting singles is more important than looking for a grand slam in your investing strategy.Why a multifamily investor left multifamily syndication behind to establish two commercial real estate investment funds.Why many multifamily investors are turning to self-storage and mobile home parks for double-digit returns.How the value creation formula maximizes income and grows the asset value in the self-storage and mobile home park sectors.Wellings Capital's funds that give accredited investors access to forced appreciation and income growth in real, non-correlated assets.
Find Out More About Paul Moore or Investing with Wellings Capital
Find out more about the Income Fund and the Growth Fund at Wellings Capital.
To hear more from Paul Moore, get the webinar Why Is a Multi-Family Investor Investing in One of America’s Most Boring Real Estate Asset Classes?
You can also listen to Paul’s podcast, How to Lose Money to gain valuable lessons of success from stories of failure.
Get Financial Clarity Today
To personally implement Privatized Banking or discover your hidden money leaks, book a Strategy Call.
You’ll find out the one thing that you need to be doing right now to accelerate your path to financial freedom.
Success leaves clues. Model the successful few, not the crowd, and build a life and business you love.
When it comes to paying off your mortgage, the 15 vs. 30-year mortgage question can stop you in your tracks. Chances are, you’re probably trying to figure out how to get a better interest rate or get out of debt sooner.
But to make the decision that puts you in the most financial control, you have to fully understand what’s at stake. And to do that, you have to peel back and peer under layers of pretty compelling myth and misinformation.
https://www.youtube.com/watch?v=TK94hJDMgW4
It sounds harder than it is.
You just have to be willing to see things for what they are, ask questions, and challenge popular assumptions. If that seems scary or hard or strange, when did taking the easy path of shortcut thinking ever create your finest moments? (Like never.)
Unfortunately, mainstream financial thinking has millions of Americans making decisions that take away their control.
There’s an unspoken rule that’s seeped into our psyche. It’s that smart people pay off their mortgages quickly.
But could our bondage to what we feel we ought to do be turning our American Dream into our American nightmare?
In today’s conversation, we’ll uncover the biggest myths about paying your mortgage. We’ll show you why the focus on paying it off quickly will handicap your cash flow and control. After we’ve unpacked the facts, you’ll know with confidence and clarity what’s best for you and be able to make mortgage financing decisions without second-guessing yourself.
Table of contentsWhere Paying Off Your Mortgage Fits into the Cash Flow SystemWhere We Got the Idea That You Should Pay Off Your Mortgage QuicklyMyths and Truths About Paying Off Your Mortgage LoanMyth 1: Having a Mortgage Means You Are in DebtTruth: Having a Mortgage Does Not Mean You are In DebtMyth 2: Your House is a Great InvestmentTruth: Your House Is Not an InvestmentTruth: Your House Is an ExpenseTruth: Appreciation on Your House Isn’t Great After AllTruth: The Opportunity Cost of Paying Off Your Mortgage is HighTruth: You Might Just Be Breaking EvenTruth: Home Equity Is Not an Investment or SavingsTruth: It’s Inconvenient to Use Your EquityMyth 3: You’re Safer When Your House is Paid OffTruth: Putting Your Cash into the Four Walls of Your House Means Less to Save and InvestTruth: The Slower You Pay Off Your Mortgage, the More Cash You KeepTruth: With a 30-Year Mortgage, You’re in a Safer Position During the Entire 30 YearsTruth: Wealthy People Don’t Always Pay Everything They’re Capable OfTruth: Today’s Dollars Are Worth More than Tomorrow’s DollarsTruth: When You Pay Off Your Mortgage Quickly, You Give Up Your Most Valuable DollarsTruth: The Closer You Are To Paying Off Your Home Loan, The Greater the Risk of Foreclosure If You Stop Making PaymentsTruth: Your Home Value Has Nothing to Do with Your EquityMyth 4: A Lower Interest Rate Costs You LessTruth: Banks Set Interest Rates Based on What’s Best for ThemTruth: To Be in Control, Model the BankIn ConclusionMath vs. EmotionWhat to Do Next Oh One More Thing...
Where Paying Off Your Mortgage Fits into the Cash Flow System
Owning a home requires paying for it. And paying for anything, no matter how you do so, affects how much of your money you keep. Making the best financing decisions gives you more to keep and put to work. But no matter how much money you keep, it’s just one small part in the bigger picture of building time and money freedom.
That’s why we have created the 3-step Business Owner’s Cash Flow System, your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of what you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance, legal protection, and Privatized Banking. Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Paying your mortgage happens right here in The Money Finder step of ...
Stacey Brown Randall teaches you how to generate referrals to grow and scale your business, without asking. Better yet, she's uncovered the reason most referral systems fail miserably. Instead of asking, paying, or following gimmicky techniques that make everyone uncomfortable, she knows exactly what to do instead.
You might be wondering just how she created a system to get referrals without asking? It was out of sheer necessity.
After one business failure with no referrals, she received 112 referrals in the first year of business #2. She single-handedly proved that you can generate business referrals WITHOUT ASKING. In fact, her clients were amazed at her success and started asking her to teach them how she did it. She then reverse-engineered her techniques, creating a system for relationship-based expertise-centric businesses to follow her lead. The result: Stacey Brown Randall has perfected her 5-step process that generates her over 100 referrals every year. And now, she's on a mission to help other small business owners and solopreneurs build a business with ease, avoid overwhelm, and finally enjoy growing their business.
If you'd rather focus on doing great work than being a hustling salesperson, this may truly be your answer. Find out how to get referrals, and you'll have prospects that are easier to close.
Where Business Referrals Fit into the Cash Flow System
As crucial as it is to build your business, it’s just one step in the bigger journey to time and money freedom.
That’s why we have created the 3-step Business Owner’s Cash Flow System, your roadmap to take you from just surviving, to a life of significance, purpose and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking. Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Today’s conversation will focus on gaining referrals in business to help you build one of your best investments. Because your business is the one thing, outside of yourself, where you have the most knowledge and control, it deserves your full attention in every way. With each stride in business mastery, you gain the capacity to maximize your cash flow from your business.
Who Is Stacey Brown Randall?
Stacey Brown Randall is a member of the business failure club, a contrarian on how to generate referrals and a supporter of the entrepreneurial dream. Through her programs, she provides a roadmap to take control of your business. Stacey is a three-time entrepreneur, author of Generating Business Referrals … Without Asking, and host of the Roadmap to Grow Your Business podcast.
If corporate America is a cruise liner, then small business is a dinghy. Stacey jumped ship from her uninspiring corporate job to launch her own business at the encouragement of a client. The first two years were smooth sailing. However, the tides changed when her strongest client suddenly left and broke their contract. With such a detrimental blow to the hull of her business, Stacey could not remain afloat just four years after launching the business. Having learned how to bounce back from failure, Stacey now works with businesses to help them grow by racking up referrals without having to ask for them.
Stacey has taught her “no asking” referral generation strategy to hundreds of companies, small businesses, and solopreneurs. She received her Master’s in Organizational Communication and is married with three kids, a 10-year-old son, 8-year-old daughter, and she and her husband have the privilege of raising their 10-year-old nephew.
Stacey Brown Randall Conversation Highlights
What’s wrong with the typical referral building methodology, and how to get real referrals instead.What a referral is and what it’s not.
Key Man Insurance is a life preserver for your business. It can prevent the devastating impact of losing a key person in your business, your revenue, and you personally.
https://www.youtube.com/watch?v=cBEB56hfKEM
It can mean the difference between your small business collapsing or rising like a phoenix from the ashes. At one of your most vulnerable moments, key person insurance can be the infusion of capital needed to protect your business.
But as you’re busy in the day-to-day of your business, this element of business continuity planning often gets forgotten. It often gets stuck in the mental file of nice to have, but I’ll get to it later. And that can be a fatal mistake.
Instead, we’ll have a conversation about how to make sure small businesses can keep moving forward, no matter what happens. And we'll help you prevent the loss of a key person from threatening one of your companies, your profits, and your livelihood.
Table of contentsWhere Key Man Insurance Fits into the Cash Flow SystemYour Key Employees Are Your Most Valuable Company AssetsWhat Makes a Key Person, in Fact, “Key?”Impact of Losing a Key PersonMeasuring the Value of a Key PersonOptions to Transfer the Risk of Losing a Key PersonWhy Key Man Insurance Is the Best Option to Cover the Cost of Losing Critical EmployeesHow Key Man Life Insurance Policies WorkHow a Key Man Insurance Policy Is TaxedTypes of Key Man InsuranceExtras to Supercharge Your Key Man InsuranceYour Next Step to Key Man Insurance
Where Key Man Insurance Fits into the Cash Flow System
Protecting your small business from financial threats is just one part of a bigger journey to building time and money freedom.
That’s why we have created the 3-step Business Owner’s Cash Flow System. This is your roadmap to take you from just surviving, to a life of significance, purpose and financial freedom.
The first step is keeping more of the money you make by fixing money leaks. Then, you’ll protect your money with insurance, legal protection, and Privatized Banking. Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Key Man Insurance is part of Stage 2. It helps you protect the wealth you’ve created so that no event has the power to sweep it away. It’s part of your livelihood safeguard, ensuring that your company continues producing your income.
Your Key Employees Are Your Most Valuable Company Assets
Where does the value of your company come from? If you started naming your company assets off the top of your head, you’d probably list your real estate first. Then, perhaps your cash, inventory, equipment, accounts receivable, clients, goodwill, and your reputation.
But topping that list is your people. People make all the things happen. And you know that great people are worth their weight in gold. Your business would be nothing without the people who add their knowledge, skill, and expertise to create what everyone knows as your company.
What Makes a Key Person, in Fact, “Key?”
For one POS company that provided machines and merchant services, one salesperson brought in 75% of the business’s revenue. The salesperson is the ultimate example of a key person – someone you would rather not have to imagine your business without.
Losing that person would mean lost sales, a floundering business, and significantly less personal income to you. It might cause you to struggle to pay your overhead and other employee’s salaries. And because of their unique abilities and talents, the cost of replacing them would be tremendously high.
Perhaps they have the Midas touch in sales or marketing, bringing in the majority of your new accounts. It could be the VP of operations or key decision-makers who are largely responsible for the efficiency and processes your company is known for. Or maybe it’s your #1 technician, with the wealth of knowledge, skill sets, and expertise that has built your company’s reputa...
Never Split the Difference is making waves in the business world by demonstrating that negotiation starts with the most counterintuitive skill of empathy. That's because author Chris Voss is likely the most qualified person to be teaching negotiation. With a long history in international crisis and high stakes negotiations as the FBI’s lead international kidnapping negotiator, and a member of the New York City Joint Terrorist Task Force, Chris has negotiated some of the most hostile and challenging situations imaginable.
He’s not only achieved a successful resolution in many cases. More importantly, he has distilled a depth of wisdom that comes from being in the trenches. And he has now translated his experience to help you negotiate as if your life depended on it.
Why We Need to Improve our Negotiation Skills
Opportunities for negotiation enter our lives every day. You’ll see it as you’re building your business and working with clients, team members, and consultants. Even in your everyday life with your family and loved ones, negotiation plays a massive role. Your goal is to get things done that you want and need to happen, in a way that everyone wins.
But, almost always, that’s easier said than done.
Your technician wants to do things their way. HR doesn’t agree with operations. A prospect says yes, then drags their feet. A vendor doesn’t follow through on their promises. Your 6-year-old doesn’t want to brush his teeth.
Enter the need for you to become a skilled negotiator.
However, we create bigger problems when we approach negotiation in the wrong way.
First, we usually avoid negotiation, sidestepping it altogether because we’re afraid of conflict.
Our next approach is usually fighting a battle of wits. This turns into a dueling match over who has the stronger argument of reason and logic.
Finally, and embarrassingly, we resort to discovering who has the louder voice.
But none of these methods work to get cooperation, collaboration, commitment, and follow-through we want.
Tune in to Learn How to Never Split the Difference
In this episode of The Money Advantage podcast, we interview Chris Voss.
Chris says that we should “never split the difference.” It’s code for letting the other side have your way.
To accomplish this, he says that we should approach the conversation with emotional intelligence, tactical empathy, and listening, to build relationships and make deals with people, not against them.
Listen to the conversation here:
Where Negotiation Fits into the Cash Flow System
Today’s conversation will home in on negotiating and deal-making to help you build one of your best investments. Because your business is the one thing, outside of yourself, where you have the most knowledge and control, it deserves your full attention to improving in every way. With each stride in business mastery, you gain the capacity to maximize your cash flow from your business.
So, that’s why you must master the art of negotiation.
As crucial as it is to improve your business, it’s just one step in the bigger journey to time and money freedom.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It's your roadmap to take you from just surviving, to a life of significance, purpose and financial freedom.
The first step is keeping more of the money you make by fixing money leaks. Then, you’ll protect your money with insurance, legal protection, and Privatized Banking. Finally, you’ll put your money to work, to increase your income with cash-flowing assets.
Who Is Chris Voss, Author of Never Split the Difference?
Chris Voss is CEO of the Black Swan Group and author of the national best-seller Never Split The Difference: Negotiating As If Your Life Depended On It, which was named one of the seven best books on negotiation.
A 24-year veteran of the FBI, Chris retired as the lead international kidnapping negotiator...
https://www.youtube.com/watch?v=sOqvqatky6Q
You can survive dying without needing a GoFundMe. I’m living proof. Three weeks ago, I almost died in an emergency operation after childbirth. Today, I’m looking down at the fluttering eyelashes of my snoring newborn, and my heart swells with enormous gratitude for the privilege of being alive to witness her life.
In today’s podcast, my husband Lucas and I tell you our very personal story of harrowing trauma and crisis, miraculous healing and recovery, redemption, and the eternal treasures we’ve gained. And we share the four pillars of protection that carried us through the scariest and hardest week of our lives.
Through our story, I want to show you how you can build the financial bunker of protection to survive life’s worst moments.
Table of contentsWhere Protection Fits into the Cash Flow SystemHow I Almost Died After ChildbirthProblems in the Third Stage of LaborIn the ICUThe Gravity of My SituationThe Emotional Agony of Almost Losing A SpouseFinancial Peace During the TraumaPracticing What We PreachDon’t Have to Use to GoFundMeThe Scariest and Hardest Week of Our LivesCircumstances Got Even DarkerFailing the Discharge TestsMore Than I Could BearMy Breaking PointThe Light at the End of the TunnelDischarged, But Not Going HomeHome at LastThe Eternal Treasures We’ve GainedOverwhelmed With GratitudeFour Pillars of Peace of Mind1) Relationship with Jesus2) Abundance Mindset3) Relationships4) Financial ProtectionHow Financial Protections Eliminate the Need for a GoFundMeLife InsuranceDisability InsuranceHealth Insurance & Emergency FundEstate PlanSecure Protection When You Don’t Need It
Where Protection Fits into the Cash Flow System
Protecting your financial life is just one part of a bigger journey to building time and money freedom.
That’s why we have created the 3-step Business Owner’s Cash Flow System, your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance, legal protection, and Privatized Banking. Finally, you’ll put your money to work, increase your income with cash-flowing assets.
When you fully protect the wealth you’ve built, no event has the power to sweep away what you’ve created. Then, you can experience peace of mind and relieve the anxiety, even during life’s worst moments.
How I Almost Died After Childbirth
At 38 weeks and 2 days into pregnancy, I had a visit Monday morning, May 20th, 2019, at 9:30 am. We were going in for a nonstress test, ultrasound, and an appointment with the midwife.
The test showed baby’s heart rate too high. She was in distress. A rushed ultrasound showed that she was now in the 3rd percentile, diagnosing her as Intrauterine Growth Restricted (IUGR). My blood pressure classified me as having Pregnancy Induced Hypertension. Basically, my placenta was calcifying and not allowing baby to get enough blood flow and nourishment. They said we needed to induce right away to allow baby to tolerate labor.
I was wheeled to labor and delivery, admitted, and began induction at 1:30 pm. I still wanted to maintain an as low-intervention birth as possible. Even though I was on Pitocin to jumpstart labor, I had requested no pain medication.
Active labor finally kicked in about 8:30 pm and my doula returned at 9 pm. In 43 minutes, I dilated from 4 to 10 cm. Baby was born after an intense, fast, and shocking labor at 9:43 pm.
Problems in the Third Stage of Labor
Afterward, the midwife and OBGYN kept asking me to push out the placenta. I pushed and pushed through a pounding headache. Only there was nothing to push. This was due to a “retained” or “sticky” placenta, which wouldn’t detach from my uterine wall.
Over the next hour, I pushed,
https://www.youtube.com/watch?v=T4j_gEU3Wto
The best profit maximization strategies are the ones nobody’s talking about. Why? Because everyone is looking for the hardest, most challenging, and over-complicated techniques. Maybe it’s our human tendency to believe that everything worthwhile has to be difficult. Or perhaps, we like the bragging rights we get after surviving the most grueling, tortuous feats. Like cutting all carbs, sugar, and flavor for seven years with no cheat days. Or making getting fit as hard as running the Boston Marathon.
When it comes to your money, you’re working hard to make it in the first place. You’re balancing enjoying life today with making sure tomorrow is secure, and taking care of your future needs, like cars, college, weddings, vacations, and personal income. As most people do their best to cover all the bases, they usually fall into one of three self-defeating traps.
Table of contentsThe Three Profit Maximization TrapsProfit Maximization Is Easier Than You ThinkWhere Profit Maximization Fits into the Cash Flow SystemWhat Is A Money Leak?Money Leak SymptomsThe Eight Profit Maximization Keys to Find and Fix Money Leaks#1) Cash Flow Awareness#2) TaxesStrategies to Minimize Taxes#3) Debt#4) Savings and Investments#5) Protections#6) Efficiency#7) Abundance perspective#8) Prioritize ProfitProfit Maximization Isn't HardGet The Top 3 Money Finder StrategiesYour Next Step to Profit Maximization
The Three Profit Maximization Traps
The first trap is trying to work harder to make more money. But this quickly turns into a rat race to stay ahead. Often lifestyle expenses creep up along with income, and they wake up to realize they’re using up the same portion of a bigger pie. This frantic, unsustainable pace of outworking your spending can lead to burnout.
The second trap is feeling the need to take on more risk to grow money faster. But high risk doesn’t equal high returns. It really means a greater potential for loss. Following this path can wind up causing you to lose money and end up back at square one, empty-handed.
The third trap that lures and then confounds even the most financially disciplined is cutting back. They try to live on less, but end up chasing pennies while stepping over dollars in the process. The scarcity mindset has them hog-tied, limiting the good they can do. They end up feeling miserable and hating life.
Profit Maximization Is Easier Than You Think
Instead of falling into those traps, thankfully, the keys to profit maximization are more like finding out that to be the healthiest and most fit, you can eat, drink, sleep, and exercise however much or as little as you want. Well, almost that easy. (And, of course, health doesn’t work that way.)
The best-kept secret to profit maximization is that keeping more of your money can be effortless and painless. You just have to know what most people don’t: how to find and fix your money leaks.
That’s why it’s our mission to help business owners increase profits by doing just that.
We’ll help you avoid the self-defeating traps that will have you burned out, losing money, and hating life.
Instead, we’ll show you the most common money leaks and how they siphon away your cash flow. You’ll quickly see how to make strategic changes to maximize profit in your business. And you'll see how to apply these strategies to your personal finances as well. Then, you’ll be able to maximize your profit and keep more of the money you make.
Where Profit Maximization Fits into the Cash Flow System
Maximizing your profit, so more of the money you make is yours to keep, is just one part of a bigger journey to building time and money freedom. You could be making a great income, but still, be missing key components of creating a sustainable lifetime of wealth.
No matter how big your business grows and how much money you make, if it’s all leaking out between your fingers,
Marco Santarelli is a real estate investor, author, and founder of Norada Real Estate Investments, a nationwide provider of turnkey cash-flow investment property.
Turnkey real estate may be an excellent opportunity for you to create cash flow from assets. With turnkey, you purchase property that’s already cash-flowing, reducing your barrier to entry into real estate investing.
Where Real Estate Investing Fits into the Cash Flow System
But real estate investing is just one part of a bigger journey to financial freedom.
Our 3-step Business Owner's Cash Flow System first helps you keep more of the money you make. We do this through tax planning, debt restructuring, and cash flow awareness. This step frees up and increases your cash flow, so you have more to invest.
Then, we help you protect your money with insurance, legal protection, and privatized banking.
Finally, you’ll put your money to work by investing in cash-flowing assets. This is how you'll build financial freedom and leave a rich legacy.
Who Is Marco Santarelli?
Marco Santarelli is the host of the Passive Real Estate Investing Podcast. He is also the founder of Norada Real Estate, a premier real estate investment firm. Marco’s mission is to help people create financial freedom by taking the guesswork out of investing. The Norada team is dedicated to researching top real estate growth markets. They structure complete turnkey real estate investments to minimize risk and maximize profitability.
Marco Santarelli began investing in real estate at the age of 18 with a single townhouse. He bought, renovated, leased and managed it himself. He then continued building his portfolio over the years up to 84 units with additional single-family homes, duplexes, and apartments. Marco Santarelli is an expert in the ins and outs of real estate investing. He has been helping investors create wealth and passive income for the past 15 years through Norada Real Estate. He is honored to have been named the 2017 Think Realty Master Investor of the Year.
Conversation Highlights
Marco Santarelli’s early start in real estate, entrepreneurship, and sales.What it means to “never sell” your real estate and why you should leverage or exchange it instead to maximize tax benefits and build generational wealth.How Marco Santarelli learned the value of revenue and cash flow through a $9.5 Million capital raise.How Marco Santarelli provides education to help those interested in real estate investing be able to pull the trigger.Neighborhood classifications, and why Norada focuses on B, B+, and A- neighborhoods.How real estate investing starts with your goals before you decide which markets to invest in.Cash flow analysis of individual properties, and why cash-on-cash returns provide a more valuable assessment than using only capitalization rates.When considering the benefits of investing in real estate, including depreciation, amortization, appreciation, leverage, and cash flow, your total return on investment easily jumps into the 30 – 40% return range.The DealGrader scoring system that Norada uses to measure the profitability and risk of a real estate investment.An example of the properties needed to create an annual income stream.With advanced strategies, you can move equity to other markets through tax-deferred exchange, leveraging the equity into a larger portfolio to accelerate passive income growth.The value of educating yourself.
Connect with Marco Santarelli
Check out the Passive Real Estate Investing Podcast. Find out more about Norada Real Estate. Get the Ultimate Guide to Passive Real Estate Investing, or check out the 10 Rules of Successful Real Estate Investing.
Create Your Time and Money Freedom
Do you want to begin building capital, putting it to work, and accelerating time and money freedom? To find out the one thing you should be doing to increase your cash flow and keep more of the money you make,
Many people get stuck paying their kids’ bills long after the kids are grown and moved out of the house. Often, it’s to the tune of hundreds, if not thousands of dollars each month. Even commitments you initially made because you love your kids and want to help them can begin to feel like a burden with no end in sight. It's time to get your grown kids off your payroll.
https://www.youtube.com/watch?v=gMiHxOpWG70
The unwanted obligation can cause financial tension, strained relationships with your children, and even marital strife. It sucks up your cash flow, limiting your ability to create your financial freedom. And, it handicaps your kids, preventing their financial savvy you may have been trying to develop in the first place.
According to USA Today article, How to Wean Grown Kids Off Your Payroll, Freeing Up More Retirement Cash, by Adam Shell, having adult kids on your payroll is way more common than you’d think.
In fact,
Just because your kids have moved out of the house doesn’t mean they’re out of your financial life. Six out of 10 (61 percent) parents with at least one adult child over 18 said they provided them financial help, according to a Pew Research Center survey.-Adam Shell, How to Wean Grown Kids Off Your Payroll, Freeing Up More Retirement Cash
Table of contentsHow to Draw the Line in the Sand and Get Your Kids Off Your PayrollWhere Weaning Your Grown Kids Off Your Payroll Fits in the Cash Flow SystemWhy It Becomes Necessary to Wean Your Grown Kids Off Your Payroll in the First PlaceThe Complexity of Financial DecisionsReasons We Keep Paying Kid’s ExpensesThe Outcomes We WantBefore It’s a Problem: Setting Up Your Kids for Financial Independence Ahead of TimeFinancial EducationTeach Kids How to Make MoneyTeach Cash Flow ManagementCreate Shared Family Decisions and ValuesPre-Determine Your Transition Point and Communicate About it EarlyWhen Should You Transition Your Kids Off Your Payroll?Which Bills?After the Problem Already Exists: How to Correct Unhealthy PatternsThe Right Time to Kick Your Kids Off Your PayrollDon’t Put it OffHave Candid ConversationsYour NeedsThe FactsAction Plan to Get Your Kids Off Your PayrollA Few Points we DivergeThe End Goal: Retirement vs. Financial FreedomLife Insurance as a Legacy Transfer and Family BankPass on a Legacy of Wisdom, Not Just MoneyPlan Now to Wean Your Kids Off Your PayrollBook a Call to Find Out Your Next Step to Time and Money Freedom
How to Draw the Line in the Sand and Get Your Kids Off Your Payroll
So how do you draw a line in the sand? How do you break free and get your life back without damaging the relationship? More importantly, how do you prevent the overextended welcome and accompanying resentment from becoming a problem in the first place?
If you’re a new or young parent, this conversation will help you think differently to create successful, self-sustaining kids.
If you’re finding yourself in the position of still paying bills for your kids today, even though you’re an empty nester, you’ll get great tips to cut the cord and transition your kids off your payroll.
Our review of this article, along with our personal experience and client conversations will help you unravel this delicate challenge. It will pave the way to healthier communication, stronger family relationships, and greater financial confidence.
Where Weaning Your Grown Kids Off Your Payroll Fits in the Cash Flow System
We’ve put together the Business Owner’s Cash Flow System to help you through all three steps of achieving a life of significance as you create financial freedom. First, you build a foundation to help you keep more of the money you make. Then you protect your money. Finally, you get it working for you to increase your cash flow from assets.
So where do your financial decisions about your kids fit into the big picture?
Transitioning your kids off your payroll is a complex topic that connects to multiple parts of...
Economic Value Added (EVA) is a little-known, but impressively effective measure to boost your profitability.
https://www.youtube.com/watch?v=b317Ifo_2kI
Coca-Cola, AT&T, Quaker Oats, CSX, and Briggs and Stratton helped the term rise to prominence when they adopted economic profit, or EVA, in the 80s and 90s. Focus on this insightful accounting measure resulted in an overwhelming increase in business value, stock price, and profits.
Because of attention to increasing EVA, Quaker Oats shifted their production schedule. Rather than using big sales promotions to spike production at each quarter's end, they leveled out with more consistent production. Then, instead of requiring large warehouse volume they more efficiently used their real estate, by stocking more consistently. With fewer warehouses and staff, they reduced costs. This put their company on the map as they launched into long-term sustainability.
CSX implemented Economic Value Added by shrinking labor and fuel costs, along with the number of containers, trailers and locomotive fleet. At the same time, they boosted freight volume, significantly enhancing profits.
In each case, the shift to improving EVA had more invested capital working harder, more of the time. This increased the productivity of each dollar at work.
Over time, different consulting firms have called this profit measurement by different names. But Stern Stewart & Co. of New York City popularized the term Economic Value Added.
Table of contentsArticle OverviewWhere Economic Value Added Fits into the Cash Flow SystemWhat Is Economic Value Added?The Disparity in the Expectations of Debt Financing and Cash PurchasesView Cash as Investor CapitalThe Interest PrincipleWhy Is Economic Value Added Important to Me and My Business?How Do I Determine the Cost of Capital?Breaking Down the Economic Value Added (EVA) CalculationWhat Should I Do to Increase My Economic Value Added and Profitability?What Is the Connection Between the Infinite Banking Concept and Economic Value Added?How does Infinite Banking improve EVA?Loaning Personal Capital To Your BusinessYour Next Steps to Using Economic Value Added
Article Overview
What does it mean and why does this matter to you? Well, if you want to put more dollars in your pocket, there’s a better way than spending a bunch of money and believing the expansion will create additional production that generates revenue and hopefully turns a profit.
In today’s article, we’ll answer:
What is Economic Value Added?Why is it important to me and my business?How do I determine the cost of capital?What should I do to increase my EVA and profitability?What is the connection between the Infinite Banking Concept and Economic Value Added?How does Infinite Banking improve EVA?
Economic Value Added will help you accurately assess and increase your real profitability. It will also increase the value of your company and give you a competitive advantage in your market. This conversation will show you how.
Where Economic Value Added Fits into the Cash Flow System
Profit maximization is just one part of the bigger picture of building time and money freedom.
That’s why we have created the 3-step Business Owner’s Cash Flow System. It’s your roadmap to take you from just surviving, to a life of significance, purpose and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable.
Then, you’ll protect your money with insurance, legal protection, and Privatized Banking.
Finally, you’ll put your money to work, increasing your net income with cash-flowing assets.
When you increase your cash flow from current income, it’s like you have more gas feeding your financial freedom machine. And this accelerates your results.
So, let’s get more gas flowing into your Cash Flow System, shall we?
What Is Economic Value Added?
https://www.youtube.com/watch?v=2E54K2bTyR8
Mike Michalowicz is a champion of profitability, on a mission to eradicate entrepreneurial poverty. Mike is the author of Profit First, Transform Your Business from a Cash-Eating Monster to a Money-Making Machine. He helps business owners realize their need for making a profit and design a practical, working accounting system that doesn’t take ironman willpower to accomplish. His Profit First System has improved tens of thousands of businesses owners, saving them from the “doom spiral” to achieve instant profitability.
The Profitability Crisis
Building a life and business you love means you have to be making money. More specifically, you need to be making a profit, keeping more of the money you make in your business. It doesn’t matter how much is coming in the front door if it’s all draining right out the back door.
Many small business owners wake up to find themselves as slaves to their business. Rather than improving their lives and fulfilling their dreams, their business has grown into a beast with an insatiable appetite for cash. The demand to spend more to keep things running requires the next sale, just to stay afloat. Instead of working because they want to, they chase sales to pacify the business and its ride-along companion of anxiety.
Welcome to a business out of control.
If this is you, you’re not alone.
Eight out of ten businesses fail because they lack profitability. All the income is gobbled up in expenses, and there’s no cold hard cash in the coffers at the end of the month. Often the business owner isn’t paying themselves at all, there are no reserves, and hello reactive mode when it comes to tax season. And this problem tends to worsen, not self-correct, the larger the business grows.
Tune in to Hear the Full Conversation About Profit First
In this episode of The Money Advantage podcast, we interview Mike Michalowicz.
While business panic and frustration might be your current chapter, it doesn’t have to be the end of the story. You can improve the health and sustainability of your business overnight by focusing in on profitability. And it isn’t as painful as you might think!
Listen to the conversation here:
Where Profitability Fits into the Cash Flow System
As crucial as keeping more of the money you make is, it’s just one step in a bigger journey.
That’s why we have created the 3-step Business Owner’s Cash Flow System, your roadmap to take you from just surviving, to a life of significance, and time and money freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking. Finally, you’ll put your money to work, increasing your income with cash-flowing assets.
Business profitability intersects the roadmap in two places.
First, it’s part of The Money Finder step in Stage 1, where you fix the money leaks that are siphoning off your cash flow. Secondly, it’s part of Investing in Stage 3, the part of the process where you craft your business into a self-sustaining, cash-flow producing asset that’s one of your very best investments.
Who Is Mike Michalowicz?
Mike Michalowicz is the entrepreneur behind three multi-million-dollar companies and is the author of Profit First, The Pumpkin Plan, and what BusinessWeek deemed the entrepreneur’s cult classic, The Toilet Paper Entrepreneur.
Mike Michalowicz is a former small business columnist for The Wall Street Journal and the former business makeover specialist on MSNBC. Today, Mike travels the world as an entrepreneurial advocate, speaking to groups just like The Money Advantage community. He is globally recognized as the guys who “challenges outdated business beliefs” and teaches us what to do about it.
Mike Michalowicz Conversation Highlights
Business growth is often the commonly accepted end goal of all entrepreneurship. And growth usually means higher earnings, sales, and revenue. After all, you want to reap the rewards of more income and gain a better lifestyle. As a business owner, the path to get there seems to be generating more clients and more dollars.
https://www.youtube.com/watch?v=1myH18J9_o4
But there’s a darker side to business growth. As the business grows, so do the cost, complexity and time commitment. You may have more employees to manage, a bigger org chart, more departments, more red tape, more training, more meetings… And this all adds up to more time and headaches for you. It can leave you as the business owner in a hurricane of endless activity and frustration, wondering who’s the boss of who. Is the business running your life, or are you running your business?
What if the things you actually want – a life of more meaning, satisfaction, enjoyment, purpose, and fulfillment – could be achieved by doing just the opposite?
Margo Aaron writes about this idea in a thought-provoking Inc.com article titled Bigger Is Not Always Better: 5 Reasons Your Business Should Stay Small on Purpose. She lays out the advantages you achieve by not hyper-focusing on business growth in the traditional sense, saying,
If you want to build a business around your life and happiness, growth might be the least viable option.Margo Aaron
Behind this article is a book, Company of One: Why Staying Small Is the Next Big Thing for Business, by Paul Jarvis. He shares his life learning that keeping his business smaller made it more sustainable, creating more freedom and flexibility for him. Scaling down, rather than up, is what created clarity, freedom from distractions, and a connection to why he was working in the first place.
What We Think
More important than whether you stay small or grow, is how streamlined, profitable, sustainable, and fulfilling your work is.
In this episode of The Money Advantage podcast, we discuss our take.
You’ll find out how to grow a life and business you LOVE, not just one that’s bigger.
Listen to the conversation here:
Table of contentsWhat We ThinkWhere Business Growth Fits into the Cash Flow SystemKey Takeaways#1) Growth Creates Unnecessary Complexity#2) Smaller Is More Agile and Sustainable#3) You Have More Liberty to Choose Your Work#4) More Control Over Your Time#5) Grow Profitability Without StressGet Business Growth That Feels GoodGet Business Growth Without More WorkGet Business Growth Without Trading Your Hours for Dollars
Where Business Growth Fits into the Cash Flow System
Business growth, however you define it, is just one part of a bigger journey to building time and money freedom. You could have a high-revenue business, but still, be missing key components of creating a sustainable lifetime of wealth.
No matter how big your business grows and how much money you make, if it’s all leaking out between your fingers, you’ll never be free of just working harder and harder to make more money. You’ll never build the peace of mind that comes from having reserves, protection, and assets that work harder for you than you can work for yourself. At some point, the job of earning money is a baton that you need to pass to cash-flowing assets that can keep chugging along, spitting out income the rest of your life so that you can enjoy time freedom.
That’s why we have created the 3-step Business Owner’s Cash Flow System, your roadmap to take you from just surviving, to a life of significance, purpose and financial freedom.
The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you’ll protect your money with insurance and legal protection, and Privatized Banking. Finally, you’ll put your money to work, increase your income with cash-flowing assets.
Business growth connects to the roadmap in two places.
https://www.youtube.com/watch?v=E3AzQpUL16Y
When buying life insurance coverage, most people don’t have a complete map. Without all the information to make the best decisions, many people make mistakes that lead to buyer’s remorse. But you don’t have to worry, you can recognize and sidestep the common pitfalls people make.
Don’t end up frustrated, discouraged, unsatisfied, or without protection in your greatest hour of need. If so, what you buy won't serve you the way you thought it would.
Instead, you can make the best life insurance decisions by learning what not to do.
Table of contentsWhat We’ll CoverWhere Life Insurance Policies Fits into the Cash Flow System10 Mistakes to Avoid When Buying Life Insurance#1) Not Getting Your Full Human Life ValueMyth: Worth More Dead Than AliveMyth: Life Insurance Is Needs-BasedMyth: There’s Always Tomorrow#2) Not Buying the Right Types of Life InsuranceOnly Buying a Term Life Insurance PolicyBuying a Permanent Life Insurance Policy That Lacks Guarantees#3) Trying to Save Money#4) Focusing Only on Death Benefit#5) Relying on Group Coverage#6) Not the Right Product Design#7) Not Buying With the Right Life Insurance Carriers#8) Not Buying the Right Life Insurance RidersPaid-Up Additions RiderWaiver of Premium RiderAccelerated Death Benefit Rider (Terminal Illness and Chronic Illness Riders)Convertibility Rider#9) Over-Analyzing#10) Not Buying Life Insurance Soon EnoughYour Decision Point
What We’ll Cover
Today, we’ll simply answer the question:
What are the most common mistakes people make when buying life insurance?
We’ll help you avoid the pitfalls and win at purchasing life insurance policies. With this information, you’ll get the protection that serves you the most. Then, you'll have the greatest peace of mind and best accomplish your goals.
Where Life Insurance Policies Fits into the Cash Flow System
Life insurance is just one small step in the greater journey of building time and money freedom.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings. This step frees up and increases your cash flow, so you have more to invest.
Then, you’ll protect your money with insurance and legal protection, and Privatized Banking. This second stage is where all aspects of insurance and Privatized Banking live. Here, you’ll create the right canopy of protection in your financial life. And, you'll secure your ability to control your access to capital, by being your own banker.
Finally, you’ll put your money to work and get it to make more. You'll invest in cash-flowing assets to build time and money freedom and leave a rich legacy.
As you are empowered to make the best life insurance decisions, you’ll move beyond analysis paralysis and make forward traction. Then, you’ll gain momentum on your journey to building time and money freedom.
10 Mistakes to Avoid When Buying Life Insurance
These mistakes and the myths associated with them should generate great questions to ask before you fill out any life insurance applications, look at life insurance quotes or get life insurance rates.
1) Not Getting Your Full Human Life Value
Many people get less than the maximum insurance they qualify for, leaving them underinsured.
You wouldn’t want to insure your car or your house for only half its value. So why would you leave your most valuable asset only partly protected? You are the originator of all of your other assets, the producer of your life’s wealth. Insurance protection should start at the source.
This widely common mistake stems from mainstream skepticism about insurance. Upon further investigation, these ideas come from one of the top three myths about insurance.
Myth: Worth More Dead Than Alive
As a residential agent, Pat Hiban sold over 6,000 residential homes, earning the title of Billion Dollar Agent. He’s also the host of Real Estate Rockstar Radio, best-selling author of Six Steps to Seven Figures: A Real Estate Professional’s Guide to Building Wealth and Creating Your Destiny, founder of Rebus University and Big Profit Agents Community, and co-founder of GoBundance.
Pat Hiban is a business owner who has created a life and business he loves. Not only that, but he’s also built an investment portfolio of cash-flowing assets.
Putting these steps in place requires the right mindset. Through this conversation, you have the opportunity to learn from his journey, model the successful few, and accelerate your success.
Where Your Mindset Fits into the Cash Flow System
As important as your mindset, your business success, and your investing strategy are, they are part of the bigger picture of building time and money freedom.
Our 3-step Entrepreneur’s Cash Flow System first helps you keep more of the money you make. We do this through tax planning, debt restructuring, cash flow awareness, and alternative savings strategies. This step frees up and increases your cash flow, so you have more to invest.
Then, we help you protect your money with insurance, legal protection, and privatized banking.
Finally, you’ll put your money to work and get it to make more. You increase your cash flow by investing in cash-flowing assets like your business and real estate to financial freedom and leave a rich legacy.
Who Is Pat Hiban?
After being labeled “learning disabled with speech deficiencies” in the 2nd grade, Pat Hiban struggled through public school and graduated college in 1987 with a 2.6 GPA.
After college, Pat jumped into the sales industry with the least barrier to entry – Real Estate!!! In his first year, Pat struggled and almost quit, making just a little over $13,000 in commissions.
For the last 30 years, Pat has been heavily involved in the Real Estate industry as a top agent, broker, and investor in residential and commercial properties. Throughout his career, he has sold over one billion dollars in Real Estate, including over 500 homes in a single year, and 14 homes in a single day. He has been recognized by both Re/Max and Keller Williams as their number one agent in the world!
In 2010, he sold his team business to his longtime partner, Mike Sloan, and went on a book tour to promote his book 6 steps to 7 figures: A Real Estate Professional’s Guide to Building Wealth and Creating Your Destiny. With the help of an introduction written personally by Gary Keller, the book went on to sell over 20,000 copies, hitting #6 on the New York Times Best Seller list and #1 on Amazon and Barnes and Noble.
He is an active investor with over 40 lines of passive income (mostly Real Estate).
In 2014, Pat Hiban launched his podcast Real Estate Rockstars, which has had close to 3 million unique downloads by Real Estate Agents from 108 countries.
He currently owns and operates Rebus University and Big Profit Agents which are training platforms for active Real Estate salespeople.
He has 2 daughters in their 20’s and resides in Folly Beach South Carolina with his wife of 25 years.
Conversation Highlights
It wasn’t a passion for real estate, but the desire to make more money than his peers and not have a boss that drew Pat Hiban into real estate for himself, his life, and his finances.Pat Hiban went through several shifts on his way to success. The first was from a salary job to commissions with higher potential earning capacity. Then, he shifted from being a buyer’s agent to a listing agent. When he lost a million dollars in the stock market, he decided to invest his money in real estate instead. Finally, he decided to build businesses, rather than just a job.To turn his work into a business, Pat leveraged teams. His objective was to buy time.
One of the biggest mistakes people make in saving money is stepping over dollars to chase pennies. This happens any time you put so much time and energy into cost-cutting tactics to save a few cents, that you ignore the greater opportunities to make money.
https://www.youtube.com/watch?v=EG9TtjM2wHE
The reason this is so attractive is that it takes less mental energy to remove something than it does to add. However, the glamour stops there, because you can’t shrink your way to wealth.
For your efforts to result in the freedom you crave, you must stay in the right mindset of abundance, creation, innovation, and production.
Two Mindsets About Saving Money
You want to save more in your business and personal life. But when it comes to saving money, there are two methods. And these camps are about as opposite as can be.
Table of contentsTwo Mindsets About Saving MoneyThe ProcrastinatorsThe Misers: Experts in Stepping Over Dollars to Chase PenniesLife and Business Examples of Stepping Over Dollars to Chase PenniesHow to Escape the Naivety of the Procrastinator, Without Falling into the Trap of the MiserIn Today’s ConversationWhere Your Mindset About Spending and Saving Fits in the Cash Flow SystemWhy Most Money-Saving Tactics Are A Waste of TimeYou Get What You Focus OnSteward of All Your ResourcesTime is Your Most Valuable CommodityProduction = Service = Exchange = VelocityWhat Is Wealth?How Do You Create Dollars Instead of Stepping Over Dollars and Chasing Pennies?Stop Stepping Over Dollars to Chase PenniesBook a Call to Find Out Your Next Step to Time and Money Freedom
The Procrastinators
On one extreme, there are the procrastinators. (Newsflash: if you’re reading this article, this probably isn’t you.)
This is the mindset of the person who lives it up today, overspending and overleveraging but attempting to outrun the mess by making more money. They think that higher income will solve all their problems.
They’re partially right. If they did make more money, they could build savings. However, Parkinson’s Law takes over and finds a way to spend the new income before they have a chance to save it.
Unfortunately, this strategy comes with some pretty hefty baggage. Stress and worry become constant adversaries when you’re not being honest with yourself. Instead of creating solid wealth habits, those who follow this method continually spend tomorrow fixing today’s mistakes.
The Misers: Experts in Stepping Over Dollars to Chase Pennies
In the other camp, we have the misers, the experts in stepping over dollars to chase pennies.
These people try to spend as little as possible. In fact, they seem to think spending nothing at all is akin to godliness or some kind of financial nirvana. They scrutinize every decision, always opting for the cheapest option.
The end game of this mindset isn’t pretty either. Imagine the miser invented a way to live with zero expense. What then? They may have all the money in the world, but they'd be stunted in their ability to enjoy life.
Life and Business Examples of Stepping Over Dollars to Chase Pennies
The misers will drive six miles out of the way to save two cents per gallon on gasoline. They’ll fail to hire a needed accountant, administrative assistant, marketing strategist, or business coach because they “can’t afford to pay someone else to do it.” They buy from the cheapest suppliers and brag about how little they spend.
How do I know? I’m embarrassed to admit that I used to live here.
About 7 years ago, right as I was starting out in business, I attended an extreme couponing class. I then spent several months zealously clipping and organizing coupons in a thick binder full of baseball card holders. I then planned my meals and weekly shopping around the coupons and sales and rejoiced when my bill was smaller than my savings.
The problem was, I filled the pantry and closets with huge stashes of toothpaste and Wor...
Ross Stryker, CEO of Smart Asset Opportunities, is the poster child for taking control of your life and financial destiny. In fact, just 4 years after he made a shift from typical thinking to investing in cash-flowing assets, he achieved financial freedom. He was liberated by the power of his choices. His key decisions to direct his mindset and investing strategy are what made all the difference for him. His story proves that financial freedom is possible for you too.
Ross Stryker models the way and offers a hand up to anyone who would like to follow. He's now helping others create financial freedom through alternative investments, real estate, and cash flow.
Where Mindset and Investing Fit into the Cash Flow System
We often talk about mindset. Every action you take has its roots in your thinking. Therefore, your mindset is the initiation, hinge, and critical entry point to building time and money freedom.
But you don’t build something great just with your mind. You must take action towards your goal.
Finding the right investments is one of those action steps. It’s how you create financial freedom with cash flow from assets.
As you can see, both your mindset and your investing strategy are just two steps in the bigger journey to time and money freedom.
Our 3-step Entrepreneur’s Cash Flow System first helps you keep more of the money you make. From cultivating the right mindset to strategic moves in tax planning, debt restructuring, cash flow awareness, and restructuring your savings to where you can access it as an emergency/opportunity fund, this step frees up and increases your cash flow, so you have more to invest.
Then, you’ll protect your money with insurance and legal protection, and Privatized Banking.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets. This empowers you to build time and money freedom and leave a rich legacy.
Who Is Ross Stryker, of Smart Asset Opportunities?
After 12 years serving in the military and over 20 years running a successful private practice, Ross Stryker realized if he didn’t alter his course, he’d be trading hours for dollars forever. It was this belief that led him to launch Smart Asset Opportunities.
He’s been involved in projects totaling over $100 million and owns 40+ single family homes, 14 ATM’s, a coffee farm in Panama, apartment complexes, office parks, storage units, and ownership in a Belizean resort. Ross is living proof that your money is better off of Wall Street, and that you can achieve financial freedom.
Just four years after his “awakening,” Ross’s investments and passive real estate income streams have surpassed his former transactional income (i.e., hours for dollars). With over $2.5 million out in total commercial project loans, Ross has an eye for tangible assets that have a proven tax advantage, high returns, and allow for stable, continuous cash flow.
Ross shares his wealth of real estate knowledge in a weekly blog and in his two books, including The Ultimate Freedom Prescription: Secrets from 14 Doctors … How They Created Generational Wealth in Less Than 5 Years.
To be an SAO investor is to understand your “why,” beyond extra zeros in your bank account. For Ross, it’s sharing everything he knows, so that others may find their own financial success and freedom. When he’s not working in real estate deals, you might find him boating with Robert Kiyosaki, better known as Rich Dad Poor Dad.
The Definition of Accredited Investor
Most of the investments offered to the Smart Asset Opportunity community are for accredited investors only.
If you do not know what accredited means, here’s a quick definition.
An accredited investor has at least $1 Million of net worth, not including the value of their home, or is making at least $200K if single, or $300K if married.
Most of our listeners fall into this category and are actively looking f...
How do you find the best life insurance companies? You want only the strongest, most stable companies to ensure the best results over the long-term. But what criteria do you use to evaluate and discover which companies are, in fact, the best?
https://www.youtube.com/watch?v=f8ZIDLY10uM
Is there an objective measure, or is it a matter of personal opinion and preference? Do you investigate their portfolio, their tenure in business, their size? Do you base your decision on the illustration or the company’s financial strength? And if you’re going with the illustration, should you look at the guaranteed rates, cash value, or the dividend scale? And is the near-term performance more important, or the figures listed out 50 years from now?
With so many factors to consider and so many figures on the illustration, how do you decide what to evaluate? Should you pick the one variable most important to you? Or do you try to analyze the big picture to find the company most likely to perform best over time?
Do you get illustrations from multiple companies and compare them?
And how long do you want to spend on your calculations?
Or do you give up the evaluation and just go with name recognition, or a trusted friend’s recommendation who is already with a company they like?
Table of contentsWhat We’ll CoverWhat This Article Won’t Tell YouWhere Insurance and Privatized Banking Fit into the Cash Flow SystemWhat Is A Life Insurance Company?The Life Insurance CompanyThe FacilitatorThe Best Life Insurance Company = Best Company + Best FacilitatorFour Elements of a Great Life Insurance Company#1) The Best Life Insurance Companies are Mutual Companies#2) The Best Life Insurance Companies Have Strong Financial RatingsThe Strength of Life Insurance Companies in GeneralRatings That Highlight the Best Life Insurance Companies#3) The Best Life Insurance Companies Have a Long Track Record#4) The Best Life Insurance Companies Have Great Customer ServiceFour Elements of the Best Financial Services Firm#1) Overall philosophy#2) Strategy#3) Relationship with Carrier#4) Succession PlanThe Team It Takes to Ensure ContinuityTwo Things That Don’t Really MatterDividend ratesNon-Direct or Direct RecognitionIn SummaryYour Decision Point
What We’ll Cover
In today’s conversation, we’ll give you the criteria to pick the best providers of life insurance. Instead of guessing, you’ll be able to know for sure so you can make decisions for yourself.
We’ll answer:
What should you look for to get the best life insurance company?How do you objectively rate all the data to know you’re with the best company for you?
You’ll get the criteria to evaluate life insurance companies to find out which one you should use.
What This Article Won’t Tell You
You may have come here looking for the list of all-stars and hoping we’d list out the top life insurance companies by name. Sorry to disappoint. We will not be listing actual companies.
Actually, that’s for your benefit. Not all life insurance companies work best in every state and region. Not all will resonate with your particular end goals. Your unique situation makes one company better for you, and another better for someone else.
We do, however, promise to disclose the criteria for evaluating life insurance companies. Then, you can make sense of it all and decide for yourself. We firmly believe that you are the best person to direct your financial life. Therefore, we aim to provide you the education, tools, and resources to empower you to do just that.
Where Insurance and Privatized Banking Fit into the Cash Flow System
Picking the best insurance company is a huge step towards implementing your Infinite Banking Concept private wealth system. But it is only one small step of a greater journey of building time and money freedom.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
https://www.youtube.com/watch?v=IoUVS9OLj-c
The real rate of return is objective, rational, and substantial. It delineates the exact performance of your capital from start point to end point. It has actual value and meaning. Like concrete beneath your feet, it’s solid ground. At its core, it is the truth.
But finding the truth is often much harder than it appears. Searching for the real rate of return can be like battling optical illusions of smoke and mirrors.
Fund managers, the media, and wall street proclaim average rates. Every day, average yields are cited as some kind of absolute, predictive authority, assuming the clout that they have no right to take.
You need truth in your financial decision-making. Instead of staking your financial future on the shifting sand of average returns, it’s time you recognize them for the imposter they are.
Table of contentsWhat We’ll CoverWhere Your Investing Mindset Fits into the Cash Flow SystemThe Stock Market Is Not What Most People Actually BelieveWhat Is the Difference Between Average and Real Rates of Return?What Is an Average Return?The Assumptions We Make Based on Average Rates of ReturnDiscovering the Fallacy in Average Rates of ReturnWhat Is the Real Rate of Return Formula?The Impact of LossesLosses are More Powerful Than GainsWith Losses, Average Returns Are Always Higher Than the Real ReturnsAverage vs. Real Returns in HistoryWhat Is a Nominal Rate of Return?Annual Real Rates of Return Over TimeInitial ConclusionsViewing the Annual Return with the Practical Lens of Taxes, Inflation Rate, Dividends, Management Fees and Transaction CostsComprehensive Conclusions Based on All the FactorsInterpreting the Historical DataThe Impact of Market TimingAdding Investment Over Time, Rather Than All at OnceThe Fallacy of Expecting the Future to Mimic the PastIn SummaryYour Decision Point
What We’ll Cover
In today’s conversation, we’ll take an in-depth look at actual market returns over the last 118 years and why average returns are misleading and can’t be taken at face value.
And finally, we’ll reveal how to take control of your financial future and not just hope that your speculations and assumptions are accurate.
This conversation will answer:
What do market returns mean for me?What returns should I expect?How do I calculate the real rate of return?What should I do to best take control of my financial future and build time and money freedom?
You’ll get the tangible facts and concrete evidence to form your own opinions.
Where Your Investing Mindset Fits into the Cash Flow System
Understanding the real rate of return is part of ensuring your ability to reach your investing goals. But before that, this knowledge will help you calibrate your mindset to fine-tune your goals in the first place, so you actually end up where you want to be.
Both investing and mindset are a part of the Entrepreneur’s Cash Flow System.
Today’s comprehensive conversation will help you invest well in stage 3. But, to achieve investing success, we’ll help you approach it with the right awareness and mindset in stage 1, so your efforts don’t crumble.
The Stock Market Is Not What Most People Actually Believe
Many people believe that they can expect at least 5 – 7% gains each year in the market, that the market will always grow over the long haul, and that their money will compound over time. At the same time, your experience of market losses, and the anxiety about your own portfolio suggest that our expectations are wrong.
According to data from YAHOO! Finance, here’s the actual performance of the S&P 500 Index over various dates and timeframes: *
+19.4% gain 12/30/2016 to 12/29/2017 (12 months)+9.4% gain from 12/29/2017 to 10/01/2018 (9 months)-19.6% drop from 10/01/2018 to 12/24/2018 (about 3 months)+5.04% annual real rate of return from 01/01/15 to 12/31/2018 (4 years)+2.85% annual real rate of return from 12/31/1999 to 12/31/2018 (19...
Jack Gibson, President and Co-Founder of High Return Real Estate, gets it. After building a multi-million-dollar income with a multi-level health company, he had a serious wake-up call. A bet was placed against his company’s stock, and he ran the risk of losing his financial footing. He felt vulnerable watching his only income source teeter and committed to building multiple streams of passive income. In a short time, he’d built a portfolio of over 50 properties. Now, along with Jack Schechter, he operates High Return Real Estate, a turnkey provider. They specializing in helping other people build cash flow income with turnkey rental real estate in Indianapolis, IN.
Where Turnkey Real Estate Investing Fits into the Cash Flow System
It’s not enough just to make a decent living and trust someone else to manage your money for you. Instead, you want to control your life and financial destiny.
That’s why we, at The Money Advantage, help business owners build time and money freedom. We do this using our 3-step cash flow system.
First, you’ll keep more of the money you make through tax planning, debt restructuring, cash flow awareness, and restructuring your savings to where you can access it as an emergency/opportunity fund.
Then, you’ll protect your money with insurance and legal protection, and privatized banking.
Finally, you’ll put your money to work and get it to make more by investing in cash flowing assets to build time and money freedom and leave a rich legacy.
Today’s conversation about turnkey real estate investing fits into Stage 3: Investing. It will educate you and give you options for investing for cash flow.
Who Is Jack Gibson?
Jack Gibson is the President and Co-Founder of High Return Real Estate. He began his entrepreneurial journey at 19 and founded his first company at the ripe old age of 21. Operating a successful nutrition consulting and distribution company, he had built a multi-million-dollar venture before he was old enough to rent a car.
Soon after that, he bought his first home as an investment. One quickly became five, and then the bug hit. He became obsessed with learning everything about real estate investing and soon had over 50 investment properties generating passive income.
Today, Jack spends his time mentoring other entrepreneurs, building his real estate investment portfolio, and helping other investors build a brighter future through the power of turnkey real estate income.
Jack Gibson Conversation Highlights (Partial Transcript)
The Start of Entrepreneurship
Jack Gibson: [3:05] I was 19 and going to college. I'd always had the entrepreneurial bug, but I just didn't know how to apply it, especially at a young age.
I was getting disgruntled with the whole “go to school, study hard, get good grades, get a job” idea. That wasn't the path I wanted to be on, but I was just trying to make my parents proud.
One day, while I was sitting in my dorm room, I recieved a flyer for a multi-level marketing nutrition opportunity. At first, I thought, No, I don't want to sell anything.
And then for whatever reason, it hit me, why not just keep an open mind and check it out? What do you have to lose? An hour?
That's where I think people lose opportunities. It's right in front of you, and you just don't ever really take a look at it.
So, I took a look at the business and started. By a year in, I started really gaining some traction. By 24 months in, we created a million-dollar business, right from my dorm.
I had a lot of challenges, of course. In that first 12 months, I had to figure it out. Then, after I graduated college, got the diploma, and made my parents proud, I worked that business full-time. And I've been doing that ever since.
I think we closed out at least 10 or 12 million in sales in 2018 for that entity. While it gets a little controversial, the business model offers the ability to have a business with no em...
https://www.youtube.com/watch?v=wDRmau3PzGU
Life insurance loans are one of the superpowers of the Infinite Banking Concept. They give you ready access to capital at any time, for any reason. These loans from life insurance policies make the cash value of specially-designed life insurance an ideal pool of capital for your investing strategy. Life insurance policy loans provide the opportunity to earn uninterrupted compound interest and earn a return in two places at the same time.However, many people encounter a mental hurdle when they consider using loans to fund their investments. They don’t want to pay to use their money. And they're concerned that infinite banking loan interest will eat into their returns when they put their capital to work.
However, much financial fear is based in partial truth and lack of understanding of the full range of impacts of your decisions.
And this isn’t your fault. Most “financial education” is a spiffed-up sales pitch offered by "financial experts." Instead of helping you, it's a one-way street, viewed through rose-colored glasses, to a particular financial product. Meanwhile, you’re wondering if you will be convinced to buy something you don’t actually want or need.
But, consider this, anything worth understanding has layers of complexity, and only those who pursue a comprehensive understanding will gain it.
This quote by Bryan Bloom strikes at the heart of the matter:
Why isn’t everyone doing this? Everyone who understands, does.– Bryan Bloom, Confessions of a CPA
When it comes to life insurance policy loans, a healthy dose of curiosity will help you gain an understanding of a financial process, principles, and truths that will give you advantages most people only dream of.
Table of contentsWhat We’ll CoverWhere Privatized Banking Fits into Your Cash Flow SystemThe Function of Life Insurance Cash Value in Your Financial LifeA Garage to Park Your MoneyHow Life Insurance Increases Your LiquidityThree Parts of a Whole Life Insurance ContractThe Liquidity of Life InsuranceWhat Is A Life Insurance Loan?Collateralizing Your Cash Value1) You’re Using Other People’s Money (OPM)2) You Earn Uninterrupted Compound Interest3) You Recycle Your CashWhy “Paying Interest to Use My Own Money” Is a MythLife Insurance Policy Loans Allow You to Continue Earning InterestThe Value of Using Life Insurance Loans to Invest, Instead of Just Paying CashWhen You Pay Cash, You Trade ReturnsWhen You Use a Life Insurance Loan, You Stack ReturnsIncreasing Your Return on Investment by Using Life Insurance LoansPaying Cash to Fund Your InvestmentUsing Life Insurance Cash Value as a Private Reserve to Fund Your InvestmentAccounting for Loan RepaymentEarning in Two Places at the Same TimeThe Undeniable Advantage of Using Privatized Banking with Life Insurance LoansWhat Can You Use a Life Insurance Policy Loan For?Obtaining the Best Loan with the Best Interest RateIn SummaryYour Decision Point
What We’ll Cover
In today’s conversation, we’ll answer your questions about life insurance policy loans and why we use them, including:
What is the function of life insurance cash value in my financial life?How does life insurance increase my liquidity?What is a life insurance policy loan?What can I use a life insurance policy loan for?When investing, why would I use a life insurance policy loan instead of paying cash?How do I increase my Return on investment by using whole life insurance with my investments?Why would I pay interest to “use my own money”?Are there times that I should consider another loan with a better interest rate?
Packaging it all together, we’ll demonstrate why they increase returns on your investments..
Where Privatized Banking Fits into Your Cash Flow System
Life insurance policy loans are a part of Privatized Banking, just one step in the greater Cash Flow System.
Wedged between Stage 1 and 3, Privatized Banking fits into Stage 2,
Brian Robbins is a 27-year chiropractor, author, real estate investor, the owner of multiple companies, and the father of 10 children. He’s not only making a great income, but he’s also found a way to create sustainable passive income as well. This shift is crucial to doing it all and doing it well!We’ll learn from his mental model and way of thinking that allowed him to accomplish so much. Gleaning from his journey and lessons along the way, you’ll recognize ways to expand your own capabilities and live out your best life.
Where Your Mindset Fits into the Cash Flow System
Here at The Money Advantage, we are a community of wealth creators. We’re entrepreneurially-minded business owners who are taking control of our lives and financial destiny.
It’s not enough to just make a great income. You have to figure out how to keep more, protect that money, and finally, increase and make more through the right investing decisions.
That’s why we’ve put together a 3-step roadmap to help business owners create time and money freedom.
This conversation will help you take an honest look at your mindset and add better thinking patterns or delete old ones that aren’t helping you build the life you love today.
Who Is Brian Robbins?
Before entering the multifamily investment arena, Dr. Robbins owned several companies including multiple medical practices, a coffee shop, a 1,500-member gym, and real estate investments. These real estate investments included a small apartment complex, a 32,000 square foot retail shopping center which houses his medical practice, and several single-family properties.
Dr. Brian Robbins is the author of Done! The Professional’s Guide to Double-Digit Returns, Multi-Generational Wealth, and a Worry-Free Retirement (2017).
Dr. Robbins, business partner of Paul Moore, is now fully committed to helping others reach their financial goals using the Wellings Capital multifamily wealth generation platform.
He and his wife Anita live on a farm in Central Virginia where they have raised 10 children, including 8 that were adopted.
Conversation Highlights (Partial Transcript)
Entrepreneurial Roots in Early Childhood
[3:49 Brian Robbins] I’m a chiropractor by trade. When I graduated from medical school, I always wanted to have a multi-discipline practice.
I was an entrepreneur as far back as I can remember. My mom would get mad because I would go out on my bike, jump into dumpsters, and dig around looking for aluminum cans to throw into a big bag, because I could recycle those and make four bucks.
I sold Postcards from door to door, and did a bit of everything as a kid, just trying to make a little bit of money here and there.
I was born as an entrepreneur. But after medical school, just looking at options that were out there, I had that in my mind the whole time.
Then I did the standard type of practice for several years until we were fortunate enough to adopt some children. And we adopted a sibling group of seven Russian orphans about 20 years ago.
The Catalyst That Launched Him into Entrepreneurship
[5:08 Brian Robbins] We had two biological kids at the time.
My wife was unable to get pregnant past those first two children. So, we looked at different options, and just really didn't want to go down the whole road of trying to work with clinics that specialize in helping you conceive.
We decided that we would look at adopting.
This particular group of kids came across our path. We found out that the Russian government was in the process of getting ready to separate them and send them to three different countries, and they would never see each other. Their ages ranged from 5 - 14 at the time.
We were fortunate enough to be able to keep them together and bring them into our home.
That was the catalyst that really pushed me forward on my entrepreneurial journey for sure.
The Shift Towards Entrepreneurship and Passive Income ...
https://www.youtube.com/watch?v=L9jhLD0Yz38
A big part of building a life and business you love is doing fulfilling work that produces a high income. Some may relegate that caliber of work to the one-in-a-million, unicorn-type anomaly – a dream job that doesn’t exist. However, research-based evidence proves otherwise, finding that 38% of US employees report that they are “very satisfied” with their jobs. It is possible to do business that makes you happy and highly successful. If you can meet both of these objectives in a single career, what’s the secret? How can you deliberately find and produce work you love, so you don’t settle for being one of the more common 62% majority who is less than satisfied? John Rampton outlines the criteria in his Entrepreneur.com article, 9 Keys to a Happy Career Making Millions.
Table of contents#1: Don’t Just “Follow Your Passion”#2: Do What You’re Good At#3: Do Work That’s Engaging#4: More Income Is Better, To a Point#5: Help Others#6: Work-Life Balance#7: Find Variety by Merging Education, Autonomy, and Security#8: Work with People You Like#9: Eliminate the NegativesMake Fulfillment a Top Priority, NowBook a Call to Find Out Your Next Step to Time and Money Freedom
1: Don’t Just “Follow Your Passion”
Unfortunately, the world is filled with broke, passionate people. Following your passion may sound like the answer to escaping a soul-crushing, mind-numbing job and finding the nirvana of purpose. But, many well-intentioned, ill-advised people have taken the leap of faith out of a well-paying corporate job, followed their passion, became an entrepreneur, and wound up losing everything.
Source: Singularity Hub
Remember the foundational wealth principle that dollars follow value? Rather than following your passion, instead, find what other people want, need, value, and are willing to pay for. Then use your passion and skill set to meet that need in a better, faster, or more efficient way. This is how to find what you love that other people love you doing. And that means you’ll be paid handsomely as well.
While passion is important to fulfillment, it isn’t everything. Just because something is exciting and important to you doesn’t mean it will lock into the gear of economic transactions.
Instead, fulfilling work requires the intersection of your passion, mission, vocation, and profession. This means that you are great at it, you love it, the world needs it, and you are paid for it. Your purpose is at the center of this alignment. This is where you create the maximum impact.
So, passion isn’t everything, but it’s one part of a bigger puzzle. You need to solve the whole algorithm to find work you love.
2: Do What You’re Good At
When you do work that you can perform with excellence, you gain pride and a tremendous sense of accomplishment. This contributes to and elevates your fulfillment.
But where does that leave you if you feel a calling to new work? Maybe you want to write or invest in real estate, and you haven’t yet developed skill in that area.
When you start out, you won’t be amazing or command a substantial income. But through committing the time and discipline to practice as Stephen Pressfield discusses in The War of Art, you’ll become a master.
3: Do Work That’s Engaging
Engaging work is defined as work with variety, a sense of completion, autonomy, feedback and a sense of contribution that your work affects other people’s lives.
It's all about how you impact others, which is a result of how much value you provide, as demonstrated in The Go-Giver.
Stimulating work means that you are at the edge of your comfort zone. And that means that you are continually growing. To grow, you need to develop a growth mindset that asks, how can I become this, rather than a fixed mindset that believes, this is who I am.
4: More Income Is Better, To a Point
So many people pursue higher and higher incomes and leave their ...
https://www.youtube.com/watch?v=DhRLGegNeHw
The ultimate goal of cash flow awareness is to save more each month. Why? Because generously paying yourself first is the foundation of wealth creation. With more savings, you build up capital to invest in cash-flowing assets so you can create time and money freedom. But across all income levels, most people’s savings habits are anemic, or even on life support. They never get ahead of their spending, so they can’t save. Every month that slips by without a good pulse on your cash flow has you veering further away from financial freedom.One remedy is to outrun the problem by making more money.
However, making more money often comes with a higher-priced lifestyle. Without the habit and discipline of savings in place, more income does nothing to help you save more.
The second solution is budgeting.
But let’s face it – budgeting stinks! It’s stressful, time-consuming, complicated, messy, and usually puts you in a bad mood.
It can seem impossible to squeeze an unpredictable life into a perfect box. There never seems to be a good way to handle irregular and unforeseeable expenses.
Sometimes one spouse is a spender, and the other doesn’t want to instigate conflict by bringing up the subject of tightening up.
And the whole idea of denying yourself all the things you want seems the opposite of living an abundant life.
Most people finally resort to some form of “bank account budgeting." Their thought is that if it’s in the bank account, it’s available to spend. But the eventual outcome is regret and a rude awakening when you need the money, and it isn’t there.
So, instead of being the ostrich with your head in the sand, how do you commit to self-accountability and gain control of your spending?
With cash flow awareness.
Table of contentsThis is For You, I PromiseHow is Cash Flow Awareness Better Than a Budget?What We’ll CoverWhere Cash Flow Awareness Fits into Your Cash Flow SystemThe Purpose of Cash Flow AwarenessThe Connection Between Abundance Thinking and AwarenessIf You’re Already Consistently SavingStep 1: Start with Your ValuesStep 2: Create Financial Priorities Based on Your ValuesStep 3: Track Your MoneyMake It Simple and Enjoyable Enough to Be SustainableObserver, Not CriticHow Far To Look BackBreaking Down Your CategoriesFour Types of Expenses: Tracking Your Spending by Frequency and PredictabilityStep 4: Analyze Your Spending TrendsStep 5: Discover Your Monthly Cash FlowThe Key of AveragesStep 6: Create a Spending Plan (Not a Budget) for the FutureFluid, But Direct Future SpendingHelpful Mint.com SettingsHow to Plan for Out of the Ordinary ExpensesStep 7: Ongoing Maintenance of Your Cash Flow AwarenessChecklist to Maintain Your Cash Flow AwarenessAn Evolving ProcessMake It FunThe Long-Term Benefits of Cash Flow AwarenessYour Decision Point
This is For You, I Promise
You may already be saving consistently. If so, cash flow awareness will help you approach your spending more consciously, make you feel even better about your money, and probably find even more dollars to save.
You might be in the top 5% of income earners and feel positive about the lifestyle you’ve had the opportunity to create, but still have a pit in your stomach when you think about the future. If you don’t know where all your money is going, and you want to figure out how to get from active income to passive income, this is for you. Cash flow awareness will show you the steps to get in control and keep more of the money you make so you can make financial progress.
If you feel your income is moderate to low and you haven’t been able to save, these steps will help you shift into a mindset of paying yourself first.
And if you’re here and you’re skeptical because you’ve had a love/hate relationship with budgeting, I’ll raise my hand and say, me too!
How is Cash Flow Awareness Better Than a Budget?
When it comes to seeking out and mastering a profitable niche, Jefferson Lilly of Park Avenue Partners, a mobile home park investor, is a true leader. Looking for a stable way to provide value and earn returns, Jefferson began analyzing real estate deals in multifamily housing across the Midwest. What he found was perplexing, but he continued to pursue this path until he found out why. And he’s glad he did because it led him to his life’s work and his ideal investment niche!
Where most multifamily apartment buildings were returning 8%, a mobile home park in the same locality was paying 10%, showing that mobile home parks were more profitable. After he saw this phenomenon ringing true repeatedly in other areas across the country, he started researching to discover why they are such a better deal than apartment buildings, office, retail, or self-storage. His discovery led to investing personally and managing investor’s capital through partnerships over the last 11 years to acquire 25 mobile home parks in 13 states.
His mission is to create wealth for his investors and to expand the supply of affordable housing.
We’ll discuss this fascinating real estate niche that’s providing an opportunity for accredited investors to earn returns in the range of 8 – 15% cash on cash.
The Definition of Accredited Investor
If you may not know what accredited means, here’s a quick definition. This is an investor with at least $1 Million of net worth, not including the value of their home, or making at least $200K if single, or $300K if married.
We know that a majority of our listeners and audience fall into this category and are actively looking for ways to put their cash to work earning a return in the most productive way. If you aren’t there yet, this will be an excellent opportunity to expand your knowledge in preparation.
Where Investing Fits into the Cash Flow System
We are a community of wealth creators. We know that it is not enough to make a great income. Instead, you have to figure out how to keep more of the money you make, protect your money, and make more through the right investing decisions.
Investing is part of stage 3 in the Cash Flow System. As you build a cash-flowing asset portfolio of real estate and business, you accelerate your path to time and money freedom.
Who Is Jefferson Lilly?
Jefferson Lilly is the founder and managing partner of Park Avenue Partners. Jefferson is a mobile home park investment expert and educator. He is responsible for Park Avenue Partners’ strategic direction, acquisitions, and property operations. Before founding Park Avenue Partners, he co-founded Park Street Partners, a similar partnership also focused on acquiring mobile home parks nationwide. PSP’s investments are returning 8% - 15% cash annually to Limited Partners; appreciation is expected to increase returns further.
Both personally and through his partnerships, Jefferson has acquired 25 MHPs in 13 states since 2007 totaling over $56mm in value. He started the industry’s first podcast (Mobile Home Park Investors) and the largest group on LinkedIn dedicated to investing in mobile home parks.
Before beginning to manage investors’ money in 2014, Jefferson spent seven years investing his own capital in mobile home parks and consulting to high-net-worth families with interests in the manufactured housing industry. Earlier in his career, he held a range of consulting and sales positions with Bain & Company, Viacom, and Verisign. Jefferson has been featured in The New York Times, Bloomberg Magazine, and on the Real Money television show. He holds a B.A. from the University of Pennsylvania and an MBA from the Wharton School of Business.
Jefferson’s favorite mobile home is the 1954 Spartan Imperial Mansion, upon which their logo is partially based. He finds the Bowlus Road Chief to be pretty appealing too.
Jefferson Lilly Conversation Highlights (Partial Transcript)
As you count down the days until Christmas, you’re also counting down the days you have before you tie up the loose ends on your fiscal year to prepare for 2018 taxes. We’ll walk you through practical and strategic tax moves you can make to close out the books, stay organized, and save taxes. This will help you keep more money in your pocket and best plan for next year.There’s lots of information out there. On the one hand, some of the typical advice is so commonplace, it seems like common sense. On the other hand, there may be strategies and options you may not even be aware of yet.
This can lead to financial noise, creating confusion, procrastination, and overwhelm. Instead, we want you face the end of year empowered and proactive.
That’s why we’re helping you sift through the information to discover the strategies that align with our community’s core values and principles. Our filter is an abundance mindset, maximizing cash flow and control, and getting your money to do the most for you.
And if you’re feeling like year’s end is a ticking time bomb with so much left to do, use these simple resources as a guide. You may be able to implement a few changes this year to make a big difference in 2018 taxes. Better yet, you’ll be armed and dangerous with a head start to make 2019 your best year yet!
Customization Required
Your situation and needs depend on whether you’re doing your own accounting and hiring out tax preparation, or have an accountant. In addition, the size and stage of your business, and your plans to scale and grow matter.
We recognize that there may be some things that don’t apply to you. That’s great! You’ll pick up information that will help you right where you are and also with where you are going.
And if you want to consider a shift that would really set you ahead, we have a recommendation for a tax strategist at the end, who may be just what you need to minimize taxes this year and every year going forward.
Many of these strategies translate over to your personal life too, where attention and intention help you make huge improvements!
One necessary disclaimer: we are not CPAs or tax professionals. However, we do have them on our team, because tax savings done right is a crucial part of improving our and our community’s lives. So, make sure you talk with a tax professional about what’s right for you.
Where Tax Planning Fits into the Cash Flow System
In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then, you protect your money. And finally, you increase and make more money.
Tax planning and strategy to increase your cash flow is part of Stage 1, your foundation. When you keep more of your money, you increase current cash flow. That is what allows you to build up capital and put it to work in cash-flowing assets, because the ticket to future cash flow from assets is current cash flow from income.
Five Hand-Selected Articles to Help You Have Your Best Tax Planning Year Yet
Our team has hand-curated five helpful articles to give you the full scope of your end of year closure and preparation. I’ll share a brief synopsis of each here. Be sure to check out the podcast for the full discussion.
1) Five Things Business Owners Can Do at Year-End to Lower Their Taxes, by Stephen Fishman, published on NOLO
This article covered most of the typical advice you hear about big financial moves to offload cash and raise this year’s deductions.
They recommend purchasing business equipment for the deduction and the depreciation, but without a clear caution to not purchase stuff you don’t need. While this seems like it should go without saying, way too many business owners buy a new truck at the end of the year to save taxes, meanwhile bleeding out cash flow in the form of an expense they didn’t need in the first place.
The article also suggests funding retirement plans,
https://www.youtube.com/watch?v=EdACBsnfLL8
A typical whole life insurance policy won’t give you the high early cash value and long-term growth you need for Infinite Banking. As enticing as its certainty and control are to wealth creators, it’s not enough. You’ll need enhancements to convert your policy from a slow equity-builder into one that you can use quickly. Cash-value life insurance modifications are like custom upgrades on a standard model floorplan when you’re building a house. These design features make all the difference between an accumulation plan and one you can actually use.
In What Kind of Policy Do You Want, Part 1, we discussed the type of life insurance we use: a dividend-paying whole life insurance contract with a mutual company that has guaranteed premiums, guaranteed cash value, and a guaranteed death benefit. Now it’s time to step it up a notch.
High cash value upfront and long-term performance are highly achievable when you design the policy in a specialized way. This custom design includes specific funding ratios and high-performance custom modifications to a whole life insurance policy.
Table of contentsWhy You’re Shopping for a High Cash Value Life Insurance PolicyWhat We’ll CoverWhere Privatized Banking Fits into Your Cash Flow SystemFunding a Privatized Banking PolicyThe Teeter-Totter Effect Between High Early Cash Value and Long-Term GrowthHigh Early Cash ValueLong-Term GrowthMaximizing Both Liquidity and GrowthThree Types of Premium and What Each Does BestBase PremiumPaid-Up Additions RiderWhy PUAs Aren't Superior to Base PremiumTerm RiderThe Balance Between Base Premium and PUAsThe Impact of Premium Type on Dividends and Long-Term GrowthHow Dividends Impact Your GrowthThe Relationship Between Premium Type and Dividends PaidThe Ideal Funding Ratio For High Cash Value Life InsuranceCustom Design Is More Important Than the FormulaHigh-Performance ModificationsDividend OptionsWaiver of PremiumHigh Cash Value Life Insurance and Break-Even YearsNon-Negotiables vs. Minor Details That Cause ConfusionDividend RatesDirect and Non-Direct RecognitionIn ConclusionYour Decision PointBuild Your Time and Money Freedom
Why You’re Shopping for a High Cash Value Life Insurance Policy
Why are you looking for high early cash value and long-term growth in cash value life insurance?
You want to secure the advantages of safety and liquidity of your money while maximizing your growth rate. Your cash value component won’t drop in value, and you can access it through life insurance loans. These advantages make whole life insurance an ideal place to store cash, allowing you to be your own bank.
You’re also grateful for the peace of mind that the policy's death benefit offers. You are purchasing a net worth that will automatically self-complete when you die, even if you don’t get to live out your wealth creation.
But rather than just setting it and forgetting it, you plan to use your life insurance while you’re alive. You want to use your capital along the way to invest in cash-flowing projects to accelerate your wealth creation in a process known as Privatized Banking. Instead of giving up cash each time you purchase another asset, you maintain control of your capital. Consequently, you reap the miracle of compound interest and earn a return in two places at the same time.
This is why it’s important that you don’t just get cash value life insurance that builds cash value at some point. You want access to lots of cash value very early on. Today’s article will show you how that is possible.
What We’ll Cover
Today, we’ll show you how we fine-tune cash value life insurance to get it to peak performance. This is the secret sauce behind Privatized Banking. It’s how we dress up a cash value life insurance policy and transform it into the superhero version.
We’ll answer:
What makes cash value life insurance specially designed?
Connor Boyack is the author The Tuttle Twins, a series of a premier free market educational books for kids. Once a web developer and online marketer, his passion transformed him into an economic, history and political philosopher and educator. Because he was perplexed by current events, he began studying history’s patterns, looking for answers to prevent us from repeating the mistakes of the past. Through his study, he discovered the time-tested principles of free market economics, liberty, and entrepreneurship.
Connor then immersed himself in political activism, starting a think tank to change state laws. While helping Tesla battle against the traditional car companies and protectionist laws that prohibited them from selling any cars in Utah, he began grappling with a new question. How could he help his young children understand his work of protecting the free market?
Finding no other resources, he set out to create one for kids to understand these big philosophical ideas. The Tuttle Twins books were born. Now a series of nine stories that condense the ideas of liberty-minded authors such as Leonard Read, Henry Hazlitt, G. Edward Griffin, Ayn Rand, and Frederick Bastiat, the Tuttle Twins communicate big ideas in a way that everybody can understand.
Because these books are creating a movement of thinkers, we wanted to share the author’s take.
Table of contentsWhere Creating a Legacy Fits into the Cash Flow SystemWho Is Connor Boyack?Connor Boyack Conversation Highlights (Partial Transcript)The Food Truck FiascoThe Book as an Instruction Manual for Protecting the Free MarketThe Miraculous PencilConversations About Collaboration In the Manufacturing ProcessFostering Awe, Wonder, and GratitudeThe Search for AtlasThe Tuttle Twins and the Search for AtlasThe Tuttle Twins and Their Spectacular Show BusinessKids Learn Free Market Ideas Through EntrepreneurshipHow the Book Gives Young Readers a Model for EntrepreneurshipThe Tuttle Twins and the Fate of the FutureQuestions from Our AudienceWhat are Your Thoughts on Democratic Schools?Passion-Driven EducationDemocratic SchoolsWould You Consider Writing a Book About the Importance of Investing in Yourself Financially with Mutual Whole Life Insurance?Other Topics Discussed with Connor BoyackActionCreate Your Time and Money Freedom
Where Creating a Legacy Fits into the Cash Flow System
As a community of wealth creators, one of our most compelling desires is not only to thrive personally, but to leave a legacy for our children of the wisdom, principles, and character that make it possible.
Let’s look at the big picture.
In the Cash Flow System, you first increase cash flow by keeping more of the money you make, then you protect your money, and finally, you increase and make more.
This conversation will take us full circle and land in two places.
Firstly, it’s part of helping you create and solidify your own mindset, philosophy, and principles of wealth creation in the very first step of the first phase.
Secondly, it’s also part of creating a legacy and passing on the wisdom that will help our kids flourish as entrepreneurs and value creators in the very last step of the last phase.
Who Is Connor Boyack?
Connor Boyack is president of Libertas Institute; a free market think tank in Utah. In that capacity, he has spearheaded many successful policy reforms in areas such as education reform, civil liberties, government transparency, business deregulation, personal freedom, and more.
Connor is also president of The Association for Teaching Kids Economics, a nationally focused nonprofit training teachers on basic economic principles, so they are empowered and motivated to help their students learn more about the free market.
As a public speaker and author of over a dozen books, Connor is best known for The Tuttle Twins books, a children’s series introducing young readers to economic, political, and civic principles.
https://www.youtube.com/watch?v=D3Yq3m8snKk
Although Trump’s Tax Reform cut taxes in many ways, millions of Americans will see taxes increase in 2018. The lower standardized deduction and the $10K cap on deductions for SALT (State and Local Taxes) will primarily affect those in the upper-middle to mid-upper class. Consequently, tax planning is becoming a growing priority for an increasing population. But for one of the most common tax-minimizing tactics, the Roth IRA, the luster is wearing thin as its limitations are becoming increasingly apparent. In its place, the Rich Person Roth is taking center stage as a strategic tool to reduce current and future income taxes, as articulated by David Rae, in the Forbes article, Rich Person Roth: For The Most Tax-Free Retirement Income.
This article discusses how the Rich Person Roth beats a basic Roth IRA and how it overcomes the biggest risks to your financial security. Then it opens a candid dialogue about why it isn’t for everyone.
In addition to discussing the points of this article, we’ll help you think through how best to reduce income taxes and create a future of time and money freedom.
Table of contentsWhere Privatized Banking Fits into Your Cash Flow SystemWhy Future Tax-Free Income Is in High DemandTax-DeferredTaxableTax-Free, or Tax-ExemptWhy the Roth IRA Falls Short1) Loss of Control with Limited Access2) Low Contribution LimitsAccumulation Insufficient to Support Future Desired Lifestyle3) Many Earn Too Much to Contribute at AllA Better Alternative for Tax Planning: The Rich Person RothWhat Is a Rich Person Roth?The Rich Person Roth Works Great for Women, TooThe Benefits of Using Cash Value During RetirementControlUse More of Your Money and Still Leave a LegacyEnjoy Your Money MoreReduce Future Taxable IncomeOptions for Turning Life Insurance Cash Value into an Income StreamThe Drawbacks to Using a Rich Person Roth and How to Overcome ThemA Better Alternative for Tax PlanningBook a Call to Find Out How a Rich Person Roth Could Work or You
Where Privatized Banking Fits into Your Cash Flow System
Life insurance loans are a part of Privatized Banking, just one step in the greater Cash Flow System.
Wedged between Stage 1 and 3, Privatized Banking fits into Stage 2, the canopy of protection in your financial life. While protecting your personal economy from the risk of loss, it also helps you keep more of the money you make and amplifies your cash-flowing asset strategy, accelerating time and money freedom.
Why Future Tax-Free Income Is in High Demand
While tax law changes have everyone on high alert, grappling for how exactly they will be affected today, the discerning are already calculating future impacts.
To widen our view of how to handle current and future taxes, let’s talk about the three ways money set aside for the future can be taxed.
Tax-Deferred
One strategy is to find financial tools that defer a tax. Here, the investment is made pre-tax, lowering taxable income in the year the contribution is made.
However, income taken from these accounts later is taxed at whatever future tax rates will be at that time. Familiar accounts in this category are 401k’s, 403b’s, IRAs.
While suppressing and placing a bandage on an immediate concern, tax-deferred assets create more uncertainty for the future. What will tax rates be at that time? How will I be impacted? How much money will I have, how much tax will I owe, and what will be left?
Taxable
Another type of financial tool is a taxable asset. With a taxable account, you put in dollars that have already been taxed. As your money grows, the growth is taxable income.
Accounts like checking, savings, money markets, and securities fall in this category.
The growth is taxable each year. In the early years, growth is small, and the taxes are fairly insignificant.
But as these accounts grow over time, the taxes due can become hefty.
https://www.youtube.com/watch?v=au5k8SZsAus
You’re on the hunt for the best life insurance policy to use for Privatized Banking. For this, not just any policy will do. You want to buy exactly the right kind of life insurance to get cash you can use, earn uninterrupted compounding, and have your dollars working in two places at the same time.Life insurance is a powerful product that can serve you in infinite ways at the same time. But designing a life insurance policy in a way that fulfills its potential has become almost a lost art.
One type of policy, with particular high-performance modifications, does Privatized Banking best. The special design ensures that you have high early cash value and maximum long-term growth while maintaining its tax advantages.
Table of contentsWhy You’re Buying a Privatized Banking PolicyYour Questions About What Kind of Policy to Use for Privatized Banking, AnsweredWhere Privatized Banking Fits into Your Cash Flow SystemWhat Kind of Life Insurance Policy Do I Need?Term InsuranceTerm Insurance and Privatized BankingUniversal InsuranceTraditional Universal Life (UL)Variable Universal Life (VUL)Equity-Indexed Universal Life (EIUL)A Note About Variable Life InsuranceUniversal Life, Variable Life, and Privatized BankingWhole Life insurancePremiumsCash ValueDeath BenefitWhole Life Insurance and Privatized BankingThe Only Type of Life Insurance Company You Want to Work WithHow Dividends WorkHow Dividends Increase Your Policy’s PerformanceThe Tax Advantages of Specially Designed Life InsuranceWhat Are the Essentials to Make Sure the Policy Performs Best?How Do I Build Cash Value Quickly to Invest in Opportunities?What Makes the Policy Specially Designed?Flexibility in How Long You Pay PremiumsStoring Your Money in Life Insurance Is Similar to Storing Your Money in the Bank, Only BetterThe BankSpecially Designed Whole Life Insurance ContractGuaranteed AccessInterestFlexible RepaymentsThe Limiting Factor Is Your ThinkingYour Decision PointRobert P Murphy, Austrian Economics, and How Privatized Banking Really WorksBuild Your Time and Money Freedom
Why You’re Buying a Privatized Banking Policy
Let’s back up to gain some context.
You already have the cash to begin investing. But instead of draining your savings account to buy the investment, you want to maintain control of your capital. You know that you can maximize the long-term efficiency of your whole personal economy by using the Infinite Banking Concept. With it, you get safety, growth, and access to your money.
To implement this strategy, you’ll first store your capital in a life insurance contract.
When you want to invest, you’ll borrow against your cash value, using a guaranteed loan feature. And when you repay the loan, you have the flexibility to choose a pace that works for you.
Because you’re not using your capital, but collateralizing it, you’ll continue earning uninterrupted compound interest. Even while you invest, giving you returns in two places at once.
Now that you’re ready to buy a policy to help you accomplish all that, what do you look for?
Your Questions About What Kind of Policy to Use for Privatized Banking, Answered
If you’ve ever spent a minute shopping for life insurance, the process can be downright overwhelming. It’s easy to feel like the assortment of options is like Baskin Robbin’s 31 flavors. All might be good, but which one is best?
Today, we’ll answer your most important questions about Privatized Banking policies:
What kind of life insurance policy do I need?What are the essentials to make sure the policy performs best? Can I use any cash value life insurance product?What makes the policy specially designed? How do I ensure it won’t take forever to build up cash value and I can use my cash quickly to invest in opportunities?
You’ll find out the three major types of life insurance, and why only one works for Privatized Banking.
https://www.youtube.com/watch?v=IVRE4Jk9XY4
Get to know the team at Mid South Homebuyers. This conversation will help you determine how and when turnkey rental real estate could help you invest for cash flow.
Who Are Terry Kerr and Liz Nowlin Brody?
Terry Kerr
Terry Kerr was born in 1970 in Memphis Tennessee. Except for some nomadic travel in his early twenties, has lived in Memphis his whole adult life. Terry enjoys water sports, hiking, and the Memphis Grizzlies with his family. He shares his life with his wonderful wife Elaine and two amazing kids, Amelia 17 and Andrew 13.
Founder and CEO of Mid South Homebuyers, Terry fell in love with making ugly houses pretty in 2001 and set out to master the business of passing bargains on to bargain hunters. Over the last 15 years, Mid South Homebuyers has purchased, renovated, and sold 1,500+ single-family houses in Memphis to real estate investors across the US and the globe.
As a turn-key seller, Mid South Homebuyers provides completely renovated investment property, with a built-in property management and maintenance team, to real estate investors who receive passive income while building wealth through real estate.
Terry is fortunate to call Memphis Tennessee home, where the price-to-rent-ratios for investment property are the best in the country. He is extremely grateful to his incredible team for positioning Mid South Homebuyers as the premier turn-key seller in Memphis and the US. Mid South Homebuyers has renovated over 1.7 million sq. ft. of real estate in Memphis TN.
Terry attributes the success of Mid South Homebuyers directly to the caring and passionate commitment of his incredible team of professionals who never stop trying to increase value and service for their investor partners.
Liz Nowlin Brody
Elizabeth Nowlin Brody is an avid real estate investor who has spent the last 16 years of her professional life working in multiple markets as a multi-unit property manager, a marketing director, a Realtor, a writer, and a public speaker. For the last 8, she's been working side by side with Terry Kerr building Mid South Homebuyers into one of the most successful turnkey providers in the U.S.
Where Investing Fits into the Cash Flow System
We love cash flow. Cash flow today is the stepping stone for cash flow tomorrow.In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money. Finally, you increase and make more.Investing is part of stage 3. Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.
Conversation Highlights (Partial Transcript)
Investments that Build Wealth Through Cash Flow
[07:48] It's single-family, blue-collar real estate. These are solid houses in solid neighborhoods. Fortunately, about 52% of the Memphis population rent. This gives us a really large pool of folks to work with.
Here is the business model: We’ll buy a house, do a full-blown renovation on the house. It's not a lipstick job. It's not just paint and carpet. We rip off the roofs, gut the kitchens, gut the bathrooms, update the electrical, plumbing, new heating and air. The houses are in better shape typically when we finished rehabbing than it was when it was first built, just because of higher-end finishes.
And we provide the best value for the resident that exists in the Memphis market. We have slightly below market rents, with the best rehab, and so we have the lowest turnover, and that's the key. We have the lowest turnover of any management company in Memphis, so the longest resident average stay. Turnover is the biggest killer for folks who own investment property, so if you can keep people in the house and keep them from moving out, that's the ticket.
There are a lot of things that go into making that possible. In big, broad strokes, if the resident is happy and the resident stays,
https://www.youtube.com/watch?v=xr8cAp9ygAQ
Piggy banks may seem best suited to our childhood era. We mentally organize them with wagon-rides, tooth fairies, and the endless pencil-sharpening of early grade school. But as adults, we need and use piggy banks; they just come in a different form. When people need money for life’s setbacks and lean times, one of the most accessed “piggy banks” is the 401(k), says Richard Rubin and Margaret Collins, in the Bloomberg article, Early Tap of 401(k) Replaces Homes as American Piggy Bank.Financial products are designed for a specific job. They may disintegrate when called upon for side jobs outside their area of expertise. The 401(k), intended for retirement planning, presents serious concerns when doubling as a piggy bank. Taxes and penalties add hardship in some of life’s darkest financial times when money is tight.
This article addresses the market and social forces that caused this phenomenon of this shift in asset choice. It honestly assesses the problems with using the 401(k) as a piggy bank and proposes solutions.
In addition to discussing the points of this article, we’ll separate fact from opinion. We'll help you think through the savings and protection component of your personal economy. Then, you’ll be able to progress toward time and money freedom, while best handling financial challenges along the way.
Table of contentsWhy You Need a Piggy BankWhere a Piggy Bank Fits into Your Cashflow Creation SystemThe Problems with Using a 401(k) as a Piggy BankThe Money is Not All YoursA Penalty to Use Your MoneyPenalties in the BillionsRequired Repayments Limit FlexibilityA Retirement CrisisThe Systemic Financial Crisis in a Different Light#1: Compartmentalized Money#2: Lack of Accessibility#3: Lack of GuaranteesAverage vs. Actual ReturnsThe Shift from Using Home Equity as a Piggy BankSuggestions to Fix the ProblemThe One Question We Should Ask Instead to Gain ControlA Better Alternative to Store Cash
Why You Need a Piggy Bank
Just because you’ve outgrown the childhood scrapes, bruises, and dirt under the fingernails doesn’t mean you’ve outgrown the need for a piggy bank. One of the most predictable financial needs is to have accessible cash that you can save for emergencies and opportunities.When you need to replace tires, have medical bills to pay, a child’s wedding or college, or want to buy a rental property, where will you get the cash?
Having access to cash is such a consistent and guaranteed need. By planning ahead and storing cash that will be there when you need it, you’ll bolster your peace of mind.
But without available cash, you’ve got to use tools that aren’t ideal, like home equity, retirement savings, or a credit card.
Where a Piggy Bank Fits into Your Cashflow Creation System
Building a stockpile of savings is to help you weather months of tight income or unforeseen expenses will move you light years ahead towards peace of mind and financial stability. But it’s just one small step of a greater journey of building time and money freedom.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund. This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.
Then, you’ll protect your money with savings, insurance and legal protection. Here, you’ll create the right canopy of protection in your financial life. This second stage encompasses all aspects of Privatized Banking, a key savings and capital deployment strategy that secures your access to capital, maximizing your control, by allowing you to be your own banker.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and mone...
https://www.youtube.com/watch?v=0AIoJylhZNI
You play a big game, and you want your money to keep pace. Being in control is essential to you, and your money is no exception. You don’t have time to be strung along every year, hoping for better returns. Instead, you want a system that works as long as you live, improving over time like a fine wine. Using your savings to mimic "the bank" with Infinite Banking fits your criteria.
Privatized Banking is a golden key that unlocks and improves every other area of your financial life. With it, you reduce taxes, increase safety and liquidity, while earning competitive growth with built-in contractual guarantees. This elevates your ability to perform at the highest level in your life and business.
Today’s article will walk you through the building blocks and what it does for you. Then, we’ll show you this system is a strategy that you do, not just a financial product you buy.
Table of contentsWhat Is Infinite Banking?Where The Infinite Banking Concept (IBC) Fits into Your Cash Flow SystemWhy The Infinite Banking Concept Is a Better Place to Store Cash1) Provide Safety, Control, and Certainty2) Accessibility3) Emergency/Opportunity Fund4) Uninterrupted Compound Growth5) Competitive Rate of Return6) Reduce the Interest You Pay7) A Debt-Free Weapon8) Tax Benefits9) Shrinks Opportunity Cost10) Increases Protection11) Each Dollar Does More Than One Job12) Peace of Mind13) Legacy TransferIf Those Aren’t Your Goals, the Infinite Banking Concept Is Not For YouInfinite Banking: A Process That You DoWhat Makes Whole Life Insurance the Perfect Vehicle for the Infinite Banking Concept (IBC)?High Cash ValueA Place to Store CashDividend-PayingWhole Life Insurance PoliciesContractWith a Mutual CompanyWhat Makes Whole Life Insurance Cash Value Such a Great Vehicle for the Infinite Banking Concept? GrowthTax-AdvantagedNet ReturnsLong-Term Actual GrowthSafetyLiquidityYou Don’t Use up Your Cash Value, You Borrow Against ItThe Infinite Banking Concept: The Bottom LineThe Infinite Banking Concept Puts the Power of Choice In Your HandsLearn More About R Nelson NashLearn More About the Infinite Banking Concept
What Is Infinite Banking?
What Is The Infinite Banking Concept? Infinite Banking is a process of reclaiming the banking function in your life. You become your own banker by creating your own banking system with dividend-paying whole life insurance.
The first thing that makes this concept stand head and shoulders above the sea of financial products is that it is more than a product. It’s a strategy for using a particular product—a whole life insurance policy, to be exact.
Rather than comparing it to a particular make and model of a racecar, it’s more like a particular style of racing in that car.
Before we dive into the nuts and bolts of how it works it is important to see how it fits into the bigger picture and why it's relevant to your life.
Where The Infinite Banking Concept (IBC) Fits into Your Cash Flow System
The Infinite Banking Concept is just one step in the greater Cash Flow System.
It’s the peanut butter to your cash flow sandwich.
Infinite banking is sandwiched between Stage 1, where you’re being more efficient and keeping more money you already make, and Stage 3, where you’re making more from your investments. It’s what makes the sandwich a sandwich, not just two slices of bread.
While it’s nestled into Stage 2, Protection, it also improves everything else around it. Infinite Banking helps you keep more of the money you make in Stage 1, amplify your cash-flowing asset strategy in Stage 3, and accelerate your Time and Money Freedom.
Why The Infinite Banking Concept Is a Better Place to Store Cash
1) Provide Safety, Control, and Certainty
Infinite Banking will solve your risk and volatility problems as a place to store your cash where it’s safe and won’t lose value. This gives you control.
https://www.youtube.com/watch?v=Hkko7rdyVUc
You are a creator! You can create and live your own extraordinary life, starting right now. And here are the tools to do so, right at your fingertips! Jon and Missy Butcher, founders of LifeBook, have embodied creating their own life. And you can do that too. To quote Steve Jobs, “Everything around you that you call life was made up by people that were no smarter than you, and you can change it, you can influence it. You can build your own things that other people can use.”
If what you see around you is not helping you create the life and business you love, you can recreate it. You can design your own life.
What began as a personal transformation journey for Jon and Missy Butcher has now helped thousands transform their lives into a masterpiece by gaining a clear vision of the person they want to become and the life they want to live, and then mapping out the steps to get there. Part of that process is recognizing the limiting beliefs you have in that area and developing a healthy consciousness instead that allows you to fulfill your potential.
Table of contentsWhere Your Mindset Fits into the Cash Flow SystemWho Are Jon and Missy Butcher?Jon and Missy Butcher Conversation Highlights (Partial Transcript)The Beginning of an Extraordinary LifeA Respectful Disregard Allowed Them to Chart Their Own PathLifeBook Was Born from Radical Personal Growth and TransformationWhat Does It Mean to Have Wealth in Every Category of Life?Abundance, Gratitude, and Wanting MoreWhat Is Money?An Empowering View of MoneyFROM Conquest and Competition TO Collaboration and CreationThe Twelve Categories of LifeBookThe Four Questions to Ask and Answer in Each Category1) What are my beliefs in this category that control my behavior? 2) What precisely, with clarity, do I want in this area of my life?3) Why do I want that? What's the purpose behind that vision? What am I going to gain if I achieve that, and what am I going to lose if I don't?
4) What do I need to do to get it? What's my strategy? How do I move toward this every day?Why LifeBook WorksOther Topics Discussed with Jon & Missy ButcherTransform Your Life Today with Jon & Missy Butcher's LifeBook SystemCreate Your Time and Money Freedom
Where Your Mindset Fits into the Cash Flow System
At The Money Advantage, we are a community of wealth creators. We are entrepreneurially-minded business owners who are taking control of our lives and financial destiny. We have a compass that always points back to the principles of wealth, not just to strategies or products. You need the right mindset, philosophy, and principles of abundance, expansive thinking, creation, cash flow, and control in place first before any financial tactics can genuinely benefit and serve you.
In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money. Finally, you increase and make more.
This conversation on the mindset, philosophy, and principles of wealth creation fits right into the very first step of the first phase.
Who Are Jon and Missy Butcher?
Jon & Missy Butcher are serial entrepreneurs, whose life together revolves around their love for each other, their four children and their work.
Together, they have founded 19 companies, organized around causes that matter.
As creators of Lifebook, an extraordinary system that has helped thousands transform their lives from ordinary to a living masterpiece, Jon and Missy Butcher have discovered how to defy aging, experience long-lasting love, redefine education for their children and build the ideal living environment in which to thrive.
Other companies Jon and Missy Butcher own or have co-founded include:
Purity Coffee – our value proposition is the cleanest, healthiest coffee on earth.Artists for Addicts – our mission is to change the global conversation surrounding addiction from one of judgment to one of compassion –...
As entrepreneurs building growing businesses, it often becomes necessary to transform ourselves. Innovation requires shedding our old thought patterns and ways of operating, so we can embrace new ones that serve us better. Dan Sullivan, of Strategic Coach, outlines this phenomenon in his growth-provoking article, Don’t Be a “Rugged Individualist” – Delegate!
He contrasts two ways of being. As fledgling entrepreneurs, we embody the tenacity and grit of “rugged individualist.” Perhaps initially we can’t afford to hire out. We resort to doing everything ourselves, from marketing, sales, technical expertise, service, managing, hiring, training, picking up supplies, cleaning the bathrooms, etc. But as we expand, this individualism can quickly become stunting, and downright ridiculous.
The maturing business owner must shift from an “I can do it myself” perspective to one of “who can do this better than me?”
Trying to do everything yourself limits the good you can do. Instead, focus on your strengths, spend your time there, and delegate everything else. In this way, you’ll accomplish much more together as a team.
Table of contentsWhere Entrepreneurship Fits into the Cash Flow SystemWhy Delegation Is a Prerequisite to Creating Your Ideal LifeRugged Individualism Comes from a Scarcity MindsetThe Two Top Reasons to DelegateGuidelines for Effective DelegationStart Before You’re ReadyDelegate to Build Your Wealth Creation Team
Where Entrepreneurship Fits into the Cash Flow System
We love Entrepreneurship. Business owners emphasize and focus on cash flow over accumulation.
In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money. Finally, you increase and make more.
Entrepreneurship is part of Investing in stage 3. Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.
Why Delegation Is a Prerequisite to Creating Your Ideal Life
In the early stages of business, you may be tempted to think that just because you’re good at your craft, that will automatically translate to building a successful business. But often this start-up strength can become a weakness in the scaling phase.
If you’re focusing on things that aren’t your core strength, you’re going to have a hard time moving forward. Not only is it demoralizing and damaging to your confidence, but the progress is slow. It arrogantly blinds you from recognizing the talents and skills of others around you.
Building a self-sustaining business that doesn’t depend on you requires you to scale by building high-functioning teams. This is the only way to move from the Self-Employed to the Business Owner quadrant in Robert Kiyosaki’s Cashflow Quadrant.
Rugged Individualism Comes from a Scarcity Mindset
Think about all the reasons you wouldn’t delegate.
Often, it’s our pride and arrogance, thinking we can do something better than everyone else. That perspective prevents us from seeing the potential in others. And we continue to play small. Instead of teaching others and re-creating ourselves, we cap our potential.
Another reason we don’t delegate is that we believe it’s too expensive, or that we can’t afford it. But this decision has an opportunity cost too! You might save the cost of paying a contractor if you do it yourself, but how much can you actually do on your own? How much more can you accomplish if you multiply your efforts with a team and synergize everyone’s strengths?
The Two Top Reasons to Delegate
The most important reason to delegate is that if you are not willing to invest in the expertise of others to support you, no one will invest in your expertise to support them. It’s a law of abundance and value creation. By refusing to give and receive from those who can help you, you are cinching a tourniquet around your ability to give and receive in every other area of your life.
https://www.youtube.com/watch?v=aSWKvjLqZ6Y
Most people struggle to get out from debt like they’re drowning in the ocean. Like drowning, they waste energy, time, and money floundering and flailing instead of taking calculated, focused, strategically-timed strokes that would free them most efficiently. The Cash Flow Index removes this struggle.Before we dive into the Cash Flow Index, let's talk about why this happens.
Often, people focus on solving the wrong problem. When it comes to paying off debt, most people are riveted on the interest they are paying. They let it steal their attention like a car accident in the other lane causes the rubber-necking drivers to lose focus on staying in their own lane.
When it comes to paying off debt, interest is only the second priority. It plays second fiddle.
It’s cash flow that is the first priority.
A focus on interest rates is like a focus on all the deep scary ocean water, full of sea creatures below you. It’s the wrong place to put your attention if you want to swim. Don’t work to escape the water, work to reach the air.
Table of contentsEarlier in the Series on DebtThe Safest, Smartest Way to Pay off DebtWhere Paying off Debt Fits into Your Cash Flow SystemWhy Cash Flow Is Top PriorityCash Flow Strategy for Paying off DebtStep 1: Calculate the Cash Flow IndexWhat Does the Cash Flow Index Mean?Ranking Your Cash Flow Index ScoresThe Rate of Return on Paying Off DebtStep 2: Use the Cash Flow Index to Create a StrategyShould You Pay off Loans?Consumptive vs. Productive LoansYour Strategy Depends on Your StewardshipThe Best Strategy to Pay off Debt#1) Continue making minimum payments.#2) Build up savings.#3) Keep an emergency fund.#4) Find your lowest index loan.#5) Pay off the loan all at once.#6) Redirect new cash flow to savings.Turbocharge Your Debt Pay-Off with Life InsuranceRefinancing and Loan ConsolidationOther ConsiderationsThe Bottom LineStart Increasing Your Cash Flow TodayThe Whole Series on DebtBuild Your Time and Money Freedom
Earlier in the Series on Debt
Previously, in Why Debt Free Doesn’t Make You Financially Free, we demonstrated clearly what debt is and what it isn’t, and that rushing frantically to pay off loans may be one of the riskiest financial moves you can make. We revealed that just because you have loans doesn’t mean you’re even in debt, and that the end goal of being rid of debt might not get you any closer to financial freedom.
Then, in The Right Way to Spend Money: Spender, Saver, or Steward? we discovered the limitations of both the Spender and the Saver. We also uncovered the superpowers of the Steward to create wealth through control, access to capital, and earning uninterrupted compound interest.
In Opportunity Cost: The Invisible Cost of Financing, we busted the myth that paying cash always saves you money. We discussed that there’s always a cost of capital, and the person who comes out ahead is the one who maintains control and access to their money.
The Safest, Smartest Way to Pay off Debt
Now, if you are in a position with multiple loans, and you’ve decided that the most productive use of your capital at this time is to pay off loans, it’s time to get a game plan.
We’ll help you calculate the best strategy to pay off debt, while decreasing risk, increasing your cash flow, maintaining as much financial control as possible, and avoiding a crisis of liquidity.
We’ll call it Cash Flow Index Snowball Method. It’s a comprehensive cash flow strategy for paying off debt.
We’ll answer:
Should I pay off my debt?If so, how do I pay off debt the quickest, most efficient, smartest way possible?Which debt should I pay off first?How do I pay off debt to best increase my cash flow?How do I avoid rubber-band debt?What steps do I take to avoid a crisis of liquidity?
This conversation will move you from haphazard overpayments to a strategic, focused plan that increases your financial control.
https://www.youtube.com/watch?v=X1_CmCHh1RM
Nelson Nash is an exceptional thinker who discovered a secret to prosperity that was too good to keep to himself. The Infinite Banking Concept® was born when he noticed what was already possible inside cash value life insurance; the ability to earn interest, gain access to capital and take control of your financial life. Since then, he’s poured his life into providing education about life insurance, making it plain so that others could prosper. Through his life and work, Nelson has woven a rich legacy that continues to empower.After reading his book, Becoming Your Own Banker, my husband and I quickly implemented these ideas in our own lives. We secured a dividend-paying whole life insurance policy that we’ve since used to invest in ourselves and our company. Our financial education journey led to meeting Bruce’s team, where we also met Nelson in person. We took him out to lunch, and I told him that someday, we would have a podcast, and wanted to interview him before he finished his speaking career. Looks like we made it!
We are so honored and grateful for the opportunity to share Nelson Nash’s story and wisdom with you.
Table of contentsWhere Nelson Nash and The Infinite Banking Concept Fit in The Bigger PictureWho Is R Nelson Nash?R Nelson Nash Conversation Highlights (Partial Transcript)Life Insurance Cash Value Provides AccessibilityHistory, Austrian Economics, and BankingNelson Nash on Life Insurance Policies and The Infinite Banking ConceptOther Topics DiscussedNelson Nash and Becoming Your Own BankerBe Your Own Banker
Where Nelson Nash and The Infinite Banking Concept Fit in The Bigger Picture
Inside The Money Advantage Cash Flow System, you first increase cash flow by keeping more of the money you make. Next, protect your money. And finally, you increase and make more.
Using the Infinite Banking Concept (also known as Privatized Banking) is part of protecting your money in stage 2.
But it’s also a golden key that improves every other area of your financial life. Here’s how:
It helps you be more efficient with money you already make, keeping and controlling more of it.The insurance component protects your human life value by providing a death benefit to your loved ones, even if you didn’t get the chance to create wealth during your lifetime.The accessibility supports your abundance mindset with an emergency/opportunity fund that provides safety and no-loss provisions.It supplies the capital to invest in cash-flowing assets like real estate and business.Your cash value serves as a storage tank while money is waiting to be used.You earn uninterrupted compound interest on your money, so you don’t chisel away your wealth potential by resetting the compounding.The opportunity to have your money working in 2 places at the same time.Tax-advantaged growth and a tax-free death benefit to take care of your family and maintain your legacy.
Who Is R Nelson Nash?
R Nelson Nash is the founder of The Infinite Banking Concept and the author of Becoming Your Own Banker, Building Your Warehouse of Wealth, and co-author of The Case for IBC (along with Carlos Lara and Robert P Murphy).
A native of Georgia, Nash received a B.S. Degree in Forestry from the University of Georgia, 1952. From 1954-1963, Nash worked as a Consulting Forester in eastern North Carolina.
During more than 35 years’ experience as a Life Insurance Agent, Nash worked with The Equitable Life Assurance Society of the U.S. and with The Guardian. Recognized for his high achievements, Nash was inducted as a Hall of Fame Member by Equitable, a Chartered Life Underwriter, and Life Member of the Million Dollar Round Table.
A pilot for 71 years, Nash flew with the Army National Guard and earned Master Aviator Wings during his 30 years of military service.
He has been married to Mary W. Nash for more than 65 years. The couple lives in Birmingham,
https://www.youtube.com/watch?v=i7v4FlY_kTE
For the business owner who wants to perform at their best and make the most out of life, the answer may be in working less, not more. In his insightful article Taking Time Off Can Increase Your Productivity and Better Your Company, Dan Sullivan, of Strategic Coach, reveals the leverage that taking time off can give your work life, your non-work life, your company, and your employees.His advice runs against the grain of our culture that is addicted to workaholism. We live on caffeine, harried, hurried, incessantly busy, multitasking, distracted and idolizing the hustle. Embracing a slower pace seems to be a sign of weakness.But sometimes the things we think are making us better, are actually making us worse.
Taking time off helps you get more done, not less.
It’s time to view free time as a necessity, not just a delicacy.
Free time isn’t just a reward for hard work; it’s a necessary prerequisite for doing good work.
Where Entrepreneurship Fits into the Cash Flow System
We love Entrepreneurship. Business owners emphasize and focus on cash flow over accumulation.
In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money. Finally, you increase and make more.
Entrepreneurship is part of Investing in stage 3. Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.
Why Taking Time off Works
Taking time off refreshes and rejuvenates you, giving you more creativity, and fresh ideas to innovate. When you take time away from your business, it requires you to streamline systems, processes, technology, and your team, instead of relying on yourself. The result is that you increase your output, without increasing your input. You become the leader that sets the standard, modeling a culture of valuing yourself, which improves the company culture and decreases burnout, turnover, and associated costs.
Best of all, it develops you into an interesting multi-dimensional person who can enjoy life now. It gives you the room to excel in your health, family, friendships, hobbies, and create a life of meaningful experiences.
Sullivan not only teaches this way of life, but he also champions it in his own life. He uses the Entrepreneurial Time System, a plan of focus days, buffer days, and free days. He shares his personal rule to work only 210 days per year. When he takes time off, he completely unplugs, being completely unreachable by phone or email. This requires him to develop a team he trusts, and then trust them to work well. It’s the way to build a truly self-managing company, an asset that produces revenue independent of the time you contribute. That’s how you move out of the rat race of trading time for money.
While we aren’t there yet in our own lives, we’re using these principles to value our creativity and contribution, work with more focus, and take more time away from our work. This helps us build a bigger vision.
What about you? What are your rules about taking time off? How will you give yourself more freedom to enjoy life today and take time off?
Get More out of Your Money Without Working Harder
If you would like to get more out of your money without working harder, gain more enjoyment satisfaction and abundance, book a strategy call to find out the one thing you should be doing today to optimize your personal economy and accelerate financial freedom.
Success leaves clues. Model the successful few, not the crowd, and build a life and business you love.
https://www.youtube.com/watch?v=34NU7bXb8i8
Opportunity cost, like the submerged portion of an iceberg, is a part of your financial decisions hidden from view. While odorless, colorless, tasteless, and silent, opportunity cost is a threat to your wealth creation. This wealth restrictor is no respecter of persons or purchase types. Opportunity cost is the tag-along to every financial decision you’ll ever make, whether you finance or pay cash. Because a dollar is a seed, every time a dollar leaves your economy, it takes along with it the harvest it had the possibility to create in your lifetime.
The repercussions of every choice to use your money continue to echo throughout the rest of your life and legacy. And just as with icebergs, what’s beneath the surface, is often more important, and much more substantial.
Table of contentsEarlier in the Series on DebtThe Whole Truth About the Whole Cost of FinancingWhere Opportunity Cost Fits into Your Cash Flow System#1: The Concept of Opportunity CostThe Cost and Opportunity Cost of FinancingWhy Paying Cash Seems More Sophisticated Than Using a LoanBut Paying Cash Is Expensive, TooYou Finance Everything You BuyIf There’s a Cost, There’s Always a Corresponding Opportunity CostOpportunity Cost over TimeYour Wealth PotentialEvery Dollar That Exits Your Personal Economy Erodes Your Wealth PotentialPaying Cash Resets the Compound Interest CurveComparing the Opportunity Costs of the Saver and the StewardEnsuring a True ComparisonVisible CostOpportunity CostSo, Who Wins?#3) Determine the Best Financing DecisionsStart Creating Wealth TodayThe Whole Series on DebtBuild Your Time and Money Freedom
Earlier in the Series on Debt
Previously, in Why Debt Free Doesn’t Make You Financially Free, we demonstrated clearly what debt is and what it isn’t, and that rushing frantically to pay off loans may be one of the riskiest financial moves you can make.
Then, in The Right Way to Spend Money: Spender, Saver, or Steward? we discovered the limitations of both the Spender and the Saver. We also uncovered the superpowers of the Steward to create wealth through control, access to capital, and uninterrupted compound interest.
The Whole Truth About the Whole Cost of Financing
Now, let’s pull the curtain back to look at the behind-the-scenes cost of financing. We’ll help you discover the truth, the whole truth, and nothing but the truth, in each method of financing. You'll see why your purchasing method, more than what you purchase, makes the most difference in your control or loss of control.
We’ll answer:
What are the real, costs of financing over time?What are the real, costs of paying cash over time?How do I evaluate the entire cost of my financing options to make the best decisions that give me the most control?
Instead of considering only the face value cost and judging the book by its cover, you’ll gain insight into the opportunity cost of any capital outlay, so you can understand what’s inside each purchasing decision. Rather than purchasing big ticket items in a way to avoid something out of fear, you’ll see the path to making empowered decisions that increase your wealth potential. You’ll go from taking mental shortcuts in purchasing that make you lose control, to a system of thinking that puts you in greater control.
Where Opportunity Cost Fits into Your Cash Flow System
Limiting your opportunity cost is just one part of your Survival to Significance Cash Flow System.
The more you reduce the money leaking out of your control today, the smaller your opportunity costs over time. Consequently, the more wealth you have to protect and turn into streams of income.
1: The Concept of Opportunity Cost
The Cost and Opportunity Cost of Financing
It’s easy to see that when you pay with a loan or credit, you’ll pay interest. That’s the part of the financing decision above the surface, the cost of financing at face value.
But over time,
https://www.youtube.com/watch?v=7c3GrX1JmXI
If you’ve been in our community for a while, chances are, you love cash flow, and you know we do too! You’re interested in quickly creating income streams with cash-flowing assets. You want assets you know and control that produce income for you so that your source of income is not restricted to the money you can make from your business while you are working in it. You likely already have your sights set on advancing your business to one that is self-sustaining, buying other businesses, or investing in real estate. And you’re hungry for ideas that may show you the unseen possibilities that already exist within your own financial situation. J Massey
For years, J Massey has been creating cash flow with real estate and teaching others to do the same. His stories of loss, success, and the wisdom he’s developed through that experience will inspire you and show you what’s possible in building your own cash-flowing asset portfolio.
On a personal note, J Massey is a hero of mine! I’ve followed his podcast for several years, where my thinking has been challenged and transformed, and I’ve been introduced to pivotal relationships. Without even knowing it, J has been a catalyst to much of my work. To say I was a bit star struck to interview him is an understatement! You’ll instantly fall in love with his thinking, his good-natured humor, and his genuine desire to solve problems and create value. It’s such an honor to share this interview with you.
Where Real Estate Fits in the Cash Flow System
To build time and money freedom, you first want as much cash flow as you can get today, by keeping more of the money you make. Then, you protect what you’ve created. Finally, you increase your income.
Investing in cash-flowing assets like real estate is part of Stage 3 of the Cash Flow System.
Who Is J Massey?
A full-time real estate investor, entrepreneur, popular podcast host, author, speaker, coach and all-around problem solver, J Massey is well known for providing best-in-class advice and strategies to help new and experienced investors the world over.
J Massey’s platform is simple… He invests his time looking for investment opportunities (a.k.a., problems to solve through real estate transactions), closing deals and teaching others how to find and manage similar opportunities, including getting deals at discounts and raising private capital to investing in multi-family properties, getting leads and negotiating the deal.
By turning his real-world fieldwork into killer training courses, new and seasoned investors alike learn win-win solutions to solve real estate “problems” for buyers, sellers and other investors. J’s cashflow-creation strategies are embraced on a global scale by people who want to learn better ways to achieve tangible success in real estate investing, and in his words become “bigger, badder, better real estate investors.” His growing network of “Cashflow Creators” is proof that J practices what he teaches and teaches what he practices.
J is currently a landlord, lender, consultant, educator and highly sought mentor. He currently owns hundreds of units of properties and has completed hundreds more real estate transactions across several states.
J's publishing credits include a book he co-authored titled “3 Money-Raising Questions.” In 2014, he released his highly acclaimed book, Cashflow Diary: 10 Steps to Creating Wealth in ANY Economy!
J Massey Conversation Highlights (Partial Transcript)
The Need to Take Ownership of Your Financial Destiny
J Massey: [20:50] The number one problem that every person literally on this planet right now has, is the fact that we do not have control over the value of the currency that we are currently using. We've got to level up our financial IQ to address that problem.
Here's a very painful but true lesson: the cavalry is not coming. No white horse is coming over the mountain to rescue...
https://www.youtube.com/watch?v=w2uHEngDgtk
Dan Sullivan shares a profound perspective on goal-setting, exponential vision, and staying energized to continue progressing, in his article Staying Positive by Looking Backward.We’re sharing this article, along with our experience of using these concepts, to help fortify your abundance mindset. We know that developing a healthy, positive perspective is the secret weapon of the entrepreneur. It energizes and encourages you, helping you build the life and business you love.
Table of contentsWhere Entrepreneurship Fits into the Cash Flow SystemIntroduction to Dan Sullivan and Strategic CoachThe 10 Times MultiplierWhy Looking Backward Helps You Stay Positive25-Year Vision, 90-Day Goals80% PerfectGoal-SettingA Continually-Growing VisionAction-Oriented Goals, Not Results-Oriented GoalsWhy Numerical Goals Are LimitingThe Four Benefits of Looking Backward Instead of Forward1) You Have a Sense of Accomplishment2) You Have A New Way of Viewing Your Past3) You Increase Your Confidence4) You Have a Strategy for Setting GoalsFlip the Switch to Stay PositiveA Financial Axle to Support Your 10 Times Life Vision
Where Entrepreneurship Fits into the Cash Flow System
We love Entrepreneurship. Business owners emphasize and focus on cash flow over accumulation.
In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money. Finally, you increase and make more.
Entrepreneurship is part of Investing in stage 3. Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.
Introduction to Dan Sullivan and Strategic Coach
[2:14 – Bruce] Dan Sullivan has been coaching entrepreneurs since 1979. He says that you need to work on your business, not just in your business.
Dan is a master thinker in thinking about your thinking.
Looking backward is a way to not only think about your life and what you want to achieve but why you think about things in a certain way and how you want to achieve them.
The 10 Times Multiplier
[3:15 – Bruce] Dan is a big believer in what he calls the 10 times multiplier. He says that you grow exponentially when you look backward. Looking backward allows you to see how you were at one point, brings you clarity, and helps you move forward.
You might be thinking that there's no way you can 10 times your income. Maybe you’re already making, let's just say $200,000, and you don’t see the way to get to the $2 million mark. He says to think back to when you were only making $20,000. You increased your income 10 times, from $20K to $200K. You can use that same growth pattern to 10 times your income from $200K to $2M.
Why Looking Backward Helps You Stay Positive
[4:25 – Rachel] When you set goals, instead of measuring the distance you have left to go before you arrive, look back at how far you've come.
Looking forward to how far you still have yet to go, can be really discouraging. But when we look backward, we realize that we've done a lot already.
That same person that we were that created that progress and advancement in the past is the same person that we are now who will carry that advancement and progress forward.
25-Year Vision, 90-Day Goals
[5:12 - Bruce] Dan always says, have a 25-year vision, which some people would call a goal, but then look at it in 90-day increments.
You're constantly looking at what you have achieved in the past 90 days, and that helps you stay motivated. If you look forward, think about how much further you have until the goal, that demotivates and discourages you, and you get down on yourself. But if you look at just 90 days, you’ll see what you accomplished in 90 days.
80% Perfect
[5:50 – Bruce] Dan also has an 80% rule, where he says to get something 80% done, and then pass it on to somebody else. And then when they do it 80% of the way, all of a sudden,
https://www.youtube.com/watch?v=2fNYsemEAHg
Alexander Pope said, “To err is human, to forgive divine.” Financially speaking, it would be more accurate to say, “to spend money is human, to create wealth divine.” No one ever needed a lesson in how to buy things. In fact, with no restraint, we manage quite well to find plentiful ways to spend money. How you spend money has the power to stunt or accelerate your wealth creation. Find out whether your purchase personality is a Spender, a Saver, or a Steward. Learn the practical action steps to up-level your purchasing strategy to keep and control more of your money, starting from where you’re at.
To help you spend money the right way, we’ll answer:
What are my options for how I spend money?Am I a spender, a saver, or a steward?What are the impacts of each?What action steps can I take from where I am to spend money better and increase my future cash flow?
Understanding your purchase personality will move you from impulse buying and scarcity-based decision-making to abundance-based wealth creation. Instead of never getting ahead, you’ll spend money knowing that you’re increasing your wealth potential. Rather than being out of control, you’ll gain control, options, and increased confidence in your financial future.
Table of contentsIt's Not So Much What You Spend, It’s How You Spend ItWhere Spending Money Fits into Your Cash Flow SystemWhat’s Your Purchase Personality?The Three Ways to Spend MoneyThe SpenderThe SaverThe Similarities of the Spender and the SaverBoth Have a Scarcity MindsetNeither Can Get AheadThe Two Problems with Paying CashYou Give Up the Ability to Earn InterestYou Reset the CompoundingThe StewardHow the Steward Gains the AdvantageAccess to the Best FinancingYour Money Continues Growing and Earning Compound InterestYou Retain Your Cash for When You Need ItYou Can Pay Off Your Loan If You Want ToImproving How You Spend MoneySteps for SpendersSteps for SaversStart Creating Wealth TodayThe Whole Series on DebtBuild Your Time and Money Freedom
It's Not So Much What You Spend, It’s How You Spend It
When you review your monthly cash flow, you’ll notice circumstances that call for you to go above and beyond your normal monthly spending. These major purchases may be to maintain your lifestyle or improve it. They may be emergencies, or opportunities, or just for fun. Whether it’s buying your next rental property, a business acquisition or expansion, buying a new car, putting tires on the old one, remodeling your kitchen, paying for your daughter’s wedding, your son’s college education, major purchases are outside your monthly spending plan and require additional thought and planning.
The way you pay for these expenses has more significant impacts on your current and future cash flow than you realize.
How you purchase makes a world of difference in your control or loss of control.
So how will you pay for these future major purchases?
You can know the best way, speculate, guess, dream, and even commit, but the best way to predict your future decision-making is to look honestly at your past decisions to figure out what mindset you used to arrive at where you are today.
Where Spending Money Fits into Your Cash Flow System
Spending money is just one part of the Survival to Significance Cash Flow System.
How you spend money is a result of your mindset. When you spend money the right way, you keep and control more money today, giving you more to save and invest in cash flowing assets.
What’s Your Purchase Personality?
Use this simple quiz to help you discover your purchase personality.
Do you put money into savings each month? If no, you are a Spender. If yes, continue.Think back to your last large purchase, maybe it was an investment property, car, boat, remodel, wedding, vacation. Did you have enough in savings to have the option to pay cash? If no, you may be a Spender. If yes, continue.
https://www.youtube.com/watch?v=Okx4cjnLylY
Becoming debt free is often listed as a notch on the belt of financial progress. It’s widely discussed, admired, longed for, celebrated, and even praised by so-called financial experts like Dave Ramsey. But, paying off debt may be and personalities risky or even altogether unnecessary. In fact, you’re probably not in debt in the first place! We want you to be debt free, but you first have to know what that means. Many confuse being debt free with being liability free. Before you decide whether to add becoming debt free to your checklist, let’s get the skinny on what debt is. Then, you can take action that gives you the most certainty, control, and peace of mind.
To help you gain clarity on your debt position and know what to do about it, we’ll answer:
What is debt?Am I in debt?Will a debt-free goal help or hurt me?More importantly, to reach my goals, gain confidence, peace of mind, time and money freedom, what should I do about debt?
This conversation will help you develop a big picture perspective of a balanced personal economy.
Rather than spiraling out of control, you’ll gain control, options, and increased financial capabilities.
Table of contentsWhy Becoming Debt Free Seems Like Such a Big DealWhere Debt Freedom Fits into Your Cash Flow SystemHow to Determine If You’re in Debt and What to Do About It#1: Understand Your Balance SheetDetermine Your Net WorthPositive and Negative Net WorthWhere Would the Money Come from to Pay It Off?The Real Reason You Don’t Like Debt#2: Understand Your Income StatementDetermine Your Cash FlowPositive and Negative Cash FlowThe Two Ways to Increase Your Cash Flow#3) Understand Your Debt-to-Income RatioMeasure Your Financial PainWhat Your DTI Means to a CreditorWhat Your DTI Means to You#4) Increase Your Cash Flow#5) Increase Cash and Assets in Your ControlPrioritize Paying Yourself over Paying down LiabilitiesHaving Cash Makes You More Secure Than Having No LoansBuild Assets You Can UseMultiply the Uses of Your MoneyThe Best Loan Pay-Off StrategyFinancially Free Is Better Than Living Debt FreeAre You Debt Free?The Whole Series on DebtSeize Your Financial Freedom
Why Becoming Debt Free Seems Like Such a Big Deal
Let’s face it; most people fear debt. They feel it’s an encumbrance or ensnarement that nullifies their goals. If it was in a game of Taboo, it’s almost a dirty word that lives with other deplorable financial conditions, like losing money, bad credit, foreclosure, and bankruptcy.
Why does debt strike at the chord of our financial aspirations so much so that ringing the debt-free bell seems like such a milestone?
Often families start off saddled in student loan debt. Because there’s not much cash, they add car loans, a mortgage, and credit card debt to achieve their lifestyle. They work a job to pay it off, while also balancing buying a house and saving for their future. But the more debt you have, the harder it seems to pay it off because you feel tighter each month. The debt seems like a slippery slope that can easily have you feeling that forward progress is all but impossible. To be debt free might seem like the best way to get back on track.
Maybe looking at the debt payments each month is an arrow to the heart, reminding you of past mistakes. To be debt free would mean to be free of the pain of guilt.
Because a balanced financial life seems unachievably complex, looking at it one piece at a time might feel more manageable and doable. Becoming debt free might be that one step you think you can really accomplish.
However, putting all your emphasis on getting out of debt can be detrimental when it causes you to lose control and delay your journey to financial freedom.
Where Debt Freedom Fits into Your Cash Flow System
Dealing with debt is just one step in the big picture of the Survival to Significance Cash Flow System.
Debt is part of your cash flow in the foundatio...
https://www.youtube.com/watch?v=2aoWvgbt2Uc
In this interview with Maureen McCann of Spartan Invest, we’ll answer:What is turnkey real estate?How can I use turnkey real estate to build cash flow from assets?What do I look for in a turnkey real estate provider?Why might I want to invest with Spartan Invest?How can I gain confidence when investing outside my local area?Why Birmingham, Alabama?When buying rental real estate, should I finance or pay cash?
Spartan Invest offers the opportunity to benefit easily from real estate investing. Investors secure the tax advantages of real estate ownership and earn cash flow, without industry knowledge, maintenance, or management headaches. If you’re looking for a way to get started in real estate investing or build a portfolio, consider the income-generating asset of single-family rental real estate in the renaissance city of Birmingham, Alabama.
Where Does Turnkey Real Estate Fit in the Cash Flow System?
We are evangelists for cash flow because cash flow is your ticket to time and money freedom.
Investing in cash-flowing assets is part of the third stage of the Cash Flow System.
Once you have a stocked emergency/opportunity fund, you now have a pool of capital that’s ready to invest. To accelerate your cash flow, you need to identify cash-flowing assets and develop an acquisition strategy.
By introducing you to opportunities that could help you accomplish your goals, we want to expand your cash-flow investing options.
Real estate has long been an asset choice of the wealthy to create cash flow income.
If you’re looking for a way to increase your cash flow, producing income in low-risk alternative investments outside the stock market, turnkey real estate with Spartan Invest may help you accomplish your goals.
Who Is Maureen McCann?
Maureen’s Role at Spartan Invest
Maureen McCann is a partner and owner, and the VP of Sales and Marketing at Spartan Invest.
She has over ten years of sales and marketing experience in the turnkey marketplace. Having served as an Investment Property coach for years, Maureen is skilled at helping clients build turnkey cash flow portfolios. Maureen has helped hundreds of investors build the type of rental portfolios necessary to reach their short-term & long-term monthly passive income goals. Investing in turnkey real estate for long-term wealth generation is something Maureen understands intimately.
Whether clients want to replace their current income with passive income or are simply looking to supplement their retirement, Maureen can help design the right portfolio with the right end goal in mind. With an incredible work ethic and an unquenchable thirst for knowledge, Maureen helps provide peace of mind while investing in premium income-generating properties.
Maureen excels in providing trusted, reliable, knowledgeable consulting to assist you with building your real estate portfolio. She spends time coaching her clients on the wealth-building principles that will help them and their families protect their capital while investing in real estate.
Maureen McCann’s Backstory
Maureen McCann was a blue-collar kid who grew up in New Jersey, paid her way through college while waiting tables, and earned her degree in Exercise Physiology because it was the one program that did not require Calculus.
She was a W2 wage earner for 15 years in Pharmaceuticals and Medical Device sales, and then stumbled into real estate in 2008 when she lost 50% of her 401K overnight and navigated her way towards turnkey real estate and passive income using her will for wanting to know what the rich knew that she didn’t know but was determined to find out.
Rich Dad Poor Dad set a new course for her life, and with the paradigm shift that occurred, she was well on her way to living a different life, with a different mindset with different outcomes leading her to live her life as a version of her highest and best self.
https://www.youtube.com/watch?v=x6fU7H7CPKQ
How do you know if the advice of financial experts applies to you? In fact, who are the financial experts? Does fame or popularity make someone an expert? What about having the biggest stage or the largest reach? Is it a degree, certification, or credential that qualifies them? Instead, the litmus test for a financial expert is that they give uncommon advice to people with uncommon income and uncommon goals. To help you decide who to listen to in making educated financial choices to secure your future, we’ll answer:
How do I decide who to take advice from? Who are the financial experts? How do I make sure I’m following the advice that leads me to my goals?How do education, personal responsibility, and the right guide work together?
We’ll help you gain confidence in who to listen to and how to apply advice in your specific situation, without guessing, having to DIY, or blindly trusting someone with your money.
You’ll go from overwhelmed with the financial noise, to confidently tuning in to what aligns and tuning out what doesn’t align with your goals.
Instead of getting stuck trying to figure everything out, you’ll have the information to take action and make progress.
You’ll gain confidence as you see a clear path from where you are to where you want to be, rather than wasting time wondering whether you’re going in the right direction.
Table of contentsWhere Financial Experts Fit into Your Cash Flow SystemThe Critical Need for Education and the Battle to Find ItThe Noise of Self Proclaimed Financial ExpertsFive Steps to Identifying the Financial Experts#1) Determine the Interest of the SourceThe Five Most Common Sources of Financial AdviceBanks and Financial InstitutionsFinancial Planners and Investment AdvisorsFinancial Entertainers and Financial Experts On National Tv and RadioThe SuccessfulFamily, Friends, and Neighbors#2) Determine Whether the Source Is Providing Common or Uncommon Advice#3) Decide Whether You Have Common or Uncommon Income#4) Decide Whether You Have Common or Uncommon Goals#5) Decide Whether You Want Common or Uncommon AdviceIt’s Not Advice If the Financial Expert Didn’t Understand Your Complete Financial PictureDetermine How to Work Together with a Financial ExpertDo It for MeDo It YourselfDon’t Do AnythingDo It TogetherYour Financial Destiny Is Yours for the TakingFinancial Experts offer Uncommon AdviceBuild Your Time and Money Freedom
Where Financial Experts Fit into Your Cash Flow System
Finding out who the financial experts are is just one step in the greater Survival to Significance Cash Flow System. Once you’ve discovered who the experts are, you decide which of the four ways you want to implement their advice.
Identifying the experts and implementing financial advice make up a micro-step in the bigger picture of gaining time and money freedom. Here’s how:
Deciding who to listen to is part of the foundation of your mindset and how you think about money.
While your mindset may be the least tangible of all of the 9 steps, it’s critical to your success. Don’t ignore or skip the mindset step. Your thinking opens the door to all your financial possibilities and brings everything else into focus.
The Critical Need for Education and the Battle to Find It
Financial competency is the most ironic adult life skill. We’re not taught in school how money works, how to make it, how to set goals, or how to arrive at our intended destination. Yet we spend almost 100% of our waking hours in pursuit of making money, spending it, or thinking about it.
If you aspire to transcend your current ranks and carve out a future of confidence, meaning, and security, it’s up to you to figure it out. So as an adult that’s mastered the education system, and probably marriage, family, and a career, you still have to figure out what to do about money.
Realizing that your financial independence is up to you is the first ...
https://www.youtube.com/watch?v=iHr-DsOLGYM
In this fascinating interview with Paul Moore, we discussed opportunities for investors to build generational wealth through commercial multifamily investing. Unfortunately, there are high barriers to entry into this investment sector. New investors to this space may lack the capital requirements, loan qualifications, and experience needed to gain a seat at the table. Through real estate investment firm, Wellings Capital, Paul Moore is making this asset class available to investors who would otherwise lack access. Wellings is a syndicator that allows investors to pool their funds to get the advantages of direct ownership of commercial multifamily real estate, along with its high returns, tax advantages, and low risk.
You’ll gain powerful business insights as you hear Paul share his thought-provoking and honest story. He confidently shares his monumental accomplishments and the significant failures that accompanied them along the way. When you listen, be prepared to learn just as much from his successes as from his stories of failure.
Paul Moore is masterful in business and marketing. You’ll come away with a new appreciation for continuous learning and reinvention, solving problems for others, and staying congruent with your life mission.
Where Entrepreneurship Fits into the Cash Flow System
We love Entrepreneurship. Business owners emphasize and focus on cash flow over accumulation.
In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money. Finally, you increase and make more.
Entrepreneurship is part of Investing in stage 3. Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.
Who Is Paul Moore?
After graduating with an engineering degree and then an MBA from Ohio State, Paul entered the management development track at Ford Motor Company in Detroit.
After five years, he departed to start a staffing company with a partner. They sold it to a publicly traded firm five years later for $2.9 million.
Along the way, Paul was a finalist for Ernst & Young’s Michigan Entrepreneur of the Year two years straight (1996 & 1997).
Paul later entered the real estate sector, where he flipped over 50 homes and 25 high-end waterfront lots, appeared as the only REALTOR® on HGTV’s House Hunters for a waterfront week special, rehabbed and managed rental properties, built many new homes, developed a subdivision, and started two successful online real estate marketing firms.
He also built several other companies and made quite a few medium and high-risk investments along the way.
Paul Moore’s Most Important Business Lessons
High Risk Does Not Equal High Returns
People often think that to get high returns, they have to take on high risk.
Instead of high risk leading to high returns, Paul Moore says that high risk leads to the potential of high returns, and more so to the potential of higher loss. Often, people think they’re investing, when really, they’re speculating or gambling.
Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas. – Paul Samuelson, the First American to win the Nobel Prize in Economics
According to Paul, investing is when your principal is safe, and you have a chance to make a return.
In contrast, the definition of speculating is when your principal is not at all safe, and there’s a chance to make a return.
His wisdom comes from several experiences speculating when he thought he was investing, and consequently, losing a lot of money.
The Importance of Giving
There is a universal law that you will get back in proportion to what you give.
When Paul Moore was $2.5 Million in debt in 2007, he decided to model George Mueller’s heroic story of giving. Paul made the most counterintuitive decision to give his way o...
https://www.youtube.com/watch?v=yhhCWKRRSvU
The #1 most effective way to increase your cash flow today is to think like the bank. Banking generates voluminous cash flow. There are rules for how the bank operates that have established banking as the most powerful business model in the world. You can follow these rules to increase your cash flow, starting from whatever income you have today. This secret hidden in plain sight is the catalyst to increase your cash flow and take control of your financial destiny, without cutting back, working harder, or taking on more risk.
Let’s build your bridge to time and money freedom by increasing your cash flow with the one most powerful step. We’ll answer:
Why focus on cash flow?What is cash flow?How do I increase my cash flow?
We’ll give you the seven rules banks use that give them the upper hand.
When you utilize these rules in your own economy, you’ll stop having so many dollars flow out of your hands, and you’ll start keeping and controlling more of your money.
You’ll leverage the magic of compound interest, so you earn it, instead of paying it.
Instead of making costly mistakes by following typical advice, you’ll think for yourself and take control.
Rather than building the empires of banks, Wall Street, and financial institutions, you’ll begin building your own financial destiny.
Table of contentsWhere Increasing Your Cash Flow Fits into the Cash Flow SystemWhat Is Cash Flow?Two Levels of Cash FlowWhy Focus on Cash Flow Now?Increase Your Cash Flow Today to Accelerate Time and Money FreedomHow to Increase Your Cash FlowThe #1 Cause of Limited Cash Flow and How to Overcome ItThree Mindset Shifts to Achieve Time and Money FreedomMindset Shift 1: From Accumulation to Cash FlowMindset Shift 2: From Retirement to Financial FreedomMindset Shift 3: From Scarcity to AbundanceYou and the BankYou Can Start Thinking Like the Bank or Be a Customer of the BankBanking 101: The Seven Rules of the Bank#1) Banks Want Cash Flow#2) Banks Earn InterestMake That Compound Interest#3) Banks Use Leverage#4) Banks Use OPM (Other People’s Money)#5) Banks Want Money Back Faster#6) Banks Take the Guarantees#7) Banks Want Low Risk and Guaranteed ReturnsModel the BankOne of the Most Effective Ways to Model the BankBuild Your Time and Money Freedom
Where Increasing Your Cash Flow Fits into the Cash Flow System
It may seem obvious that increasing your cash flow is a critical component of your cash flow system. I mean, that’s the part of your life that is all about cash flow, right? But here’s how it fits in the bigger picture exactly:
The Cash Flow System moves you from survival, with little to no cash flow, to significance, where you have abundant cash flow from assets.
In the foundational phase, you start by keeping more of the money you make. In the next phase, you protect your money. Finally, you make more money and increase your cash flow.
Thinking like a bank is part of all three stages and allows you to increase your cash flow.
Most importantly, it’s part of your mindset in the foundational phase. Your mindset is what allows you to reduce your money leaks and keep more of your money.
In the second phase, thinking like a bank allows you to protect your money, earn uninterrupted compound interest, and save like the wealthy.
Finally, employing banking principles allows you to utilize cash-flowing assets to build time and money freedom.
What Is Cash Flow?
Cash flow is when you have more money at the end of your month.
Cash flow is the money that you’re not using up each month, that you can instead set aside and store up. When you have cash flow, you have money left over in your monthly economy.
Determine your current monthly cash flow with this simple equation:
Cash Flow = Income – Expenses
Having more cash flow gives you more options, and options give you freedom and control.
Two Levels of Cash Flow
https://www.youtube.com/watch?v=FzIkG9x3u1g
If you listen to the “financial experts” on tv or the radio, you will hear the typical blanket advice that you should put money into a 401(k). But the question is, does that advice apply to everybody? To get as much of an insider’s perspective as we could find, we interviewed Ted Benna, "inventor" of the 401(k). During this insightful conversation, we discussed the purpose of the 401(k), its history, shortcomings, and the need for reform. This interview was forthright about why there’s a coming retirement crisis and what you can do about it if you want to take control of your financial destiny.
In this episode, we’ll help you answer:
What does the 401(k) help me accomplish?Is the 401(k) right for me?
If you remember in How to Find Your Best Investments, we discussed that your investing strategy will be unique to you. You maximize your gains when you take an active role in investing in what you know and control.
So, where does the 401(k) fit for you?
Table of contentsIndividual Goals Create Individual StrategiesDifferent PerspectivesWhere Does the 401(k) Retirement Plan Fit in the Cash Flow System?Meet Ted Benna, the Father of the 401(k)How Ted Benna and the 401(k) Savings Plan Made HistoryIncreasing Retirement Security for the Middle ClassThe Responsibility for Your Financial Future Is YoursWhat Ted Benna Wants to ChangeWhat Ted Benna Is Doing About 401(k) ReformTed Benna’s PerspectiveAverage Rates of ReturnTypical Advice and Taking RiskDoes a 401(k) Make Sense for Entrepreneurs?Thoughts on ProtectionGiving BackAdditional Topics DiscussedAnother PurposeConnect with Ted BennaIncrease Your Cash Flow, Liquidity and Control Today
Individual Goals Create Individual Strategies
Here at The Money Advantage, our objectives are to help you keep and control more of your money. As an entrepreneur, you want control, access to your money, liquidity, cash flow, and tax advantages as possible. A 401(k) doesn’t support those goals.
However, to promote your education, it’s valuable to round out your perspective by considering the full discussion. When you increase your knowledge, you gain the ability to make decisions and build confidence that you’re doing what’s best.
Whether or not a 401(k) is a fit for you, it’s in your best interest to understand them. 401(k)s may be a part of providing solutions.
The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function. – F. Scott Fitzgerald
In this previous conversation about abundance, we discussed why being open-minded and considering contrasting information is critical to learning:
Unless you’re willing to expand your map, nothing new exists for you. When we come into a conversation with people who see differently, it’s important to recognize that if we both had the same map, we’d think the same way. When we each defend our own interpretation of the facts, it leads to conflict. The only way you can learn something new is to be willing to step off of your map and onto someone else’s. It’s not about who’s right, but about learning what else is possible.
Today, we’re jumping onto the map of someone with a different perspective so that we can expand our own map. We invite you to do the same.
Different Perspectives
While you’ll notice a great deal of common ground in our philosophy and perspective, we don’t agree on everything. We do agree that there are problems, but we do not completely agree about how to solve them.
One specific distinction is that we do not view putting money in a 401(k) to be savings.
We agree that it’s crucial to have a systematic way of setting money aside for the future before spending. The 401(k) has provided a method for hundreds of thousands of people to invest over $10 Trillion.
However, a 401(k) fails to meet the criteria of being a retirement savings tool.
https://www.youtube.com/watch?v=dZTM7rAkqD4
Life, health, and disability insurance protect you, your body, your wellness, and your livelihood. This range of coverage includes some of the most essential protections. Too often, people ask the wrong questions. This leads them to draw the wrong conclusions about life, health, and disability insurance. As a result, many remain drastically underinsured or forgo the protection altogether. Without maximum life, health, and disability insurance, you leave the things that matter most, exposed to the highest risk.Asking how to save money on your life, health, and disability insurance is the wrong place to start. First, you want to best protect what's most important to you. You get the maximum security and protection by securing the best possible, longest lasting, highest quality coverage. After you find the best coverage, then you can use smart shopping strategies to lower your costs.
Here’s straight talk about how to get the best insurance and make every dollar you spend in premium count.
Table of contentsThe Whole Series on InsuranceIn This ArticleWhere Insurance Fits into Your Whole Personal EconomyThe Universe of YouSaving Money on Life, Health, and Disability Insurance: An Oxymoron?No Time Like the PresentHow Much Life, Health, and Disability Insurance Do You Want?The Cost of Not Going BackwardsHealth InsuranceThe Rising CostsUnderstanding Your Health Insurance CoverageHow to Save Premium on Your Health Insurance#1) Consider Group Insurance#2) Pay Out-Of-Pocket for the Small Stuff#3) Count All Your Costs#4) Raise Your Deductible#5) Consider an HSA#6) Narrow Your Network#7) Consider an Alternative with Caution#8) Don’t Rely on SubsidiesDisability InsuranceThe Risk of DisabilityYour Income Is Your ResponsibilityDisability Insurance Handles the Immediate and Extended Impacts of Losing IncomeIf Your Income Source Is Businesses and Real Estate, You Still Need Disability InsuranceUnderstanding Your Disability InsuranceKeys to Getting the Best Disability Income Insurance at the Least Cost#1) Increase Your Elimination Period#2) Ensure You Have True Own-Occupation Coverage#3) Own It Personally#4) Get as Much as You CanLife InsuranceThe Value of the Death BenefitUnderstanding Your Life Insurance OptionsTerm Life InsuranceThe Odds Are Not in Your (Financial) FavorTerm Becomes More Expensive at RenewalBetting Against Death Doesn’t Make Financial SenseWhole Life InsuranceThe Odds Are in Your FavorThe Extra Component: Living BenefitsGuarantees, Not BetsIs Whole Life More Expensive?Keys to Getting the Best Life Insurance for the Least Cost#1) Ensure Your Life Insurance Isn’t Just a Cost#2) Start with Whole Life Insurance and Supplement with Term InsuranceInsure Your Full Human Life Value#3) Maximize Convertible Term Life Insurance#4) Start As Soon As PossibleThe Bottom LineThe Whole Series on Insurance ProtectionGet the Best Quality, Highest Value Insurance Today
The Whole Series on Insurance
In the last five articles, we’ve outlined an insurance philosophy and buying guide to put you in control.
Why You Want Insurance Part 1 examined what insurance does. It transfers risk.Why You Want Insurance Part 2 discussed why it matters. It protects your greatest asset.Why You Want Insurance Part 3 covered the cost and answered why you should pay for insurance. It costs more to self-insure.How to Shop for Insurance Part 1 outlined the seven tips to save the most money when shopping for insurance in general.How to Shop for Insurance Part 2 gave guidance on buying home, auto, and business insurance.
In This Article
Today, we’re capping off the series by focusing on life, disability, and health insurance.
We’ll show you how to secure the best life, health, and disability insurance coverage and be efficient with your premium costs. We’ll answer:
How do I best protect what matters most? How do I get the highest quality life, health, and disability insurance? Then,
https://www.youtube.com/watch?v=213FWlAdFY0
Home and auto insurance are two pillars of insurance protection that are almost universally understood to be necessary. However, when it comes to choosing and paying for coverage, you have nearly infinite options. The range of coverage details, exemptions, coverage amounts, and limitations add complexity. This can make shopping for insurance seem like a maze without an exit.Without the knowledge of what to look for, your home and auto insurance can become a costly money leak. But overwhelm is no reason to pay more than you need to or settle for coverage that’s less than best.
Your goal is to pay the least for the best possible coverage. To help you do that, we want to show you the tricks of the trade. These insights will help you become more efficient with these coverages, keeping more of your dollars in your pocket.
With these strategies, you’ll get the best deals on your home and auto insurance and win at insurance shopping.
In the last article, we gave you the seven tips to save on insurance in general. Today, we’ll apply that specifically to your home and auto insurance to answer:
How do I make the best decisions on my home and auto insurance?How do I shrink my home and auto insurance cost while maximizing my protection?What do I include in my home and auto insurance coverage to get the best for the lowest price?
We’ll first walk you through understanding your coverages. Then we’ll give you the exact tips to get the best value home and auto insurance for the least premium. You'll feel protected and secure, without mourning the cost.
Once we’ve done that, we’ll walk you through the added layer of business insurances. We'll show you how to maximize your coverage and minimize your costs as you protect one of your most valuable assets.
You’ll gain confidence and peace of mind without giving up any more of your dollars in monthly expenses than necessary.
Table of contentsWhere Insurance Fits into Your Whole Personal EconomyUnderstanding Your Auto InsuranceThe Primary Purpose of Auto Insurance: Liability ProtectionCoverage Limits for Liability ProtectionWhen They’re at Fault, but Their Insurance Isn’t Enough to CoverCoverage Limits for Uninsured/Under-Insured Motorist ProtectionWhat Coverage Protects Me in Other Scenarios?Comprehensive and Collision Auto InsurancePersonal Injury ProtectionHomeowner’s InsuranceProtecting Your StuffStructuresContentsUnderstand Up Front What’s Not CoveredProtecting YouUnderstanding Your Umbrella InsuranceHome and Auto Insurance: Keys to Getting the Most for the Least#1) Start with the Maximum Coverage#2) Raise Your Deductible#3) Get At Least the Minimum Liability Coverage to Get an Umbrella Policy, and Get the Umbrella#4) Rack up Your DiscountsUnderstanding Business InsuranceCommercial Property InsuranceBusiness Liability InsuranceGeneral Liability InsuranceProfessional Liability InsuranceWorker’s CompensationEmployment Practices Liability InsuranceCommercial Umbrella InsuranceOther Coverages to ConsiderBusiness Overhead Expense InsuranceKey Person Life InsuranceBusiness Insurance: Maximizing Your ValueThe Bottom LineUp NextThe Whole Series on Insurance ProtectionTake Action
Where Insurance Fits into Your Whole Personal Economy
Let’s zoom out for a moment to remember where and why insurance fits into your Cash Flow System.
Your foundation starts with keeping more of the money you make. Second, you protect what you’ve built. Finally, you increase your income to create time and money freedom and expand your legacy.
Insurance fits in the protection stage. With it, your livelihood is no longer at risk, but secure, regardless of the life circumstances you face.
Your protection is like a roof on your financial house. When the shingles are sufficient and cover the whole house, it keeps storms outside your house, preventing them from getting inside and destroying your belongings. Similarly,
https://www.youtube.com/watch?v=rNLoqEr546o
When you shop around for insurance, it’s best to start with a game plan. Then you know what to look for and how to save on insurance without sacrificing value. It’s just like shopping for groceries, a marketing strategist, or an investment property.First, you need to know what you want. Next, you want to know how to get the best deal. Finally, you need to know where to find it.If you’ve been following along in this series on protection, you know why you want insurance.
You’re here because you want an insurance strategy that transfers as much risk as possible to protect your human life value. You want as much of the best, most enduring, highest quality coverage you can get.
Now it’s time to find the best deals.
Over the next three articles, we’re going to walk you through how to save on insurance.
We’ll answer:
How do I maximize the value I get for the least premium?What protections should I have?What are some pitfalls to avoid, so my protection doesn’t become a money leak?
Today, we’ll show you seven tips to get the most and best value coverage for the least premium so that you can feel protected and secure. You’ll gain confidence and peace of mind without giving up any more of your dollars in monthly expenses than absolutely necessary.
Table of contentsPreviouslyWhere Insurance Fits into Your Whole Personal EconomyBanish Buyer’s RemorseConfident Insurance Shopping Is the Goal7 Tips to Save on Insurance#1) Know What You’re GettingFrom Cost-Conscious to Value-Conscious#2) Have Emergency SavingsBoth Parties Must WinRisk Sets RatesThe First Dollars of Coverage Are Most ExpensiveWhat Is the Deductible?Does It Make Financial Sense to Raise My Deductible?Cost-Benefit AnalysisDo You Plan to Use Your Coverage?The Hidden Superpower of Savings#3) Start with the Maximum#4) Get an Umbrella Policy Homeowners Insurance & Car Insurance Is Not Enough #5) Bundle Lines of Coverage With Insurance Companies#6) Cut Duplicate Coverage#7) Own It Personally7 Tips to Save on InsuranceUp NextThe Whole Series on Insurance ProtectionTake Action to Save on Insurance
Previously
If you're not sure why you would want insurance in the first place, here’s the first three articles in the series to help you do exactly that:
Why You Want Insurance Part 1 examined what insurance does. It transfers risk.Why You Want Insurance Part 2 discussed why it matters. It protects your greatest asset.Why You Want Insurance Part 3 covered the cost and answered why you should pay for insurance. It costs more to self-insure.
Where Insurance Fits into Your Whole Personal Economy
Let’s zoom out for a moment to remember where and why insurance fits into your Cash Flow System.
Your foundation starts with keeping more of the money you make. Second, you protect what you’ve built. Finally, you increase your income to build time and money freedom and expand your legacy.
Insurance fits in the protection stage. With it, your livelihood is no longer at risk, but secure, regardless of the life circumstances you face.
Your protection is like a roof on your financial house. When the shingles are sufficient and cover the whole house, it keeps storms outside your house, preventing them from getting inside and destroying your belongings. Similarly, when you have adequate insurance protection, your income and assets you’ve built are safe from financial storms that may occur in your life.
Banish Buyer’s Remorse
If you’ve recognized a disparity between the coverage you have and the coverage you want, it’s time to go shopping. Whether you are purchasing insurance for the first time, adding new lines of coverage, or shoring up an existing strategy, the decision can be quite overwhelming.
At the store, when you go shopping without a plan, a well-meaning salesperson asks you what you’re looking for and how they can help. Instead of sounding nice,
https://www.youtube.com/watch?v=jE2gHoholqo
If you have been reading The Money Advantage blog for a while, you may already know that The Go-Giver book played a central role in How The Money Advantage Began. We are huge fans of Bob Burg and John David Mann's Go-Giver Series.
The Go-Giver is an engaging parable about the unexpected system of getting predictable, proven results in building a prosperous business.This story reveals the five laws of stratospheric success, giving you the recipe to make more money in your entrepreneurial endeavors by adding value and increasing your impact.
The Go-Giver is an engaging parable about the unexpected system of getting predictable, proven results in building a prosperous business.This story reveals the five laws of stratospheric success, giving you the recipe to make more money in your entrepreneurial endeavors by adding value and increasing your impact.If you have been reading The Money Advantage blog for awhile, you may already know that The Go-Giver book played a central role in How The Money Advantage Began.
Table of contentsWhere Your Mindset Fits into the Cash Flow SystemWhy a Go-Giver Mindset MattersMeet Bob Burg, Co-Author and "How-To Guy" of The Go-GiverThe Main Idea of the Go-GiverThe Five Laws of Stratospheric SuccessLaw #1: The Law of ValueThe Five Elements of ValueLaw #2: The Law of CompensationLaw #3: The Law of InfluenceLaw #4: The Law of AuthenticityLaw #5: The Law of ReceptivityOther Topics Discussed with Bob BurgGet The Go-GiverLet Us Add More Value to Your Life
Where Your Mindset Fits into the Cash Flow System
At The Money Advantage, we are a community of wealth creators. We are entrepreneurially-minded business owners who are taking control of our lives and financial destiny. We have a compass that always points back to the principles of wealth, not just to strategies or products. You need the right mindset, philosophy, and principles of abundance, expansive thinking, creation, cash flow, and control in place first before any financial tactics can genuinely benefit and serve you.
In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money. Finally, you increase and make more.
This conversation on principles of wealth creation fits right into the very first step of the first phase.
Why a Go-Giver Mindset Matters
In business, you may feel stuck in your current level of achievement. You may be excelling but want to expand and scale your business outside your current capabilities.
Or, you may find yourself in the struggle for survival, wanting a steady stream of incoming clients in the future to remain profitable.
Perhaps you’re working to meet a quota in sales to qualify for a trip or the next rank in status, or to reach your own goal and internal metric of success.
Many business owners reach a plateau of success, where, try as they might, they need a new skillset and mindset to reach the next level of achievement.
While you want the fruit of success, the hustle, drive, ambition, and force will only take you so far before you burn out and call it quits.
Wherever you find yourself, The Go-Giver shows you the mindset to move from struggling to thriving, or from successful to ultra-successful, without doubling your efforts to get there.
Bob Burg and John David Mann lay out actionable laws of success in this delightfully-written story that will move you from hustling to attracting business instead.
We brought Bob Burg in for an interview to answer:
What is the Go-Giver all about?How do I live the Go-Giver principles to build my business?How can the struggling become successful, or the successful become ultra-successful?
Meet Bob Burg, Co-Author and "How-To Guy" of The Go-Giver
Bob Burg is a sought-after speaker at company leadership and sales conferences sharing the platform with everyone from today’s business leaders and broadcast pers...
https://www.youtube.com/watch?v=I1_GwiJtM20
To navigate your insurance decisions, you must weigh the costs and opportunity costs of each option. While some choose to self-insure as a solution to reduce insurance costs, there are additional costs hidden beneath the surface that you need to be aware of.Insurance is fairly polarizing. Chances are, you either love it or you hate it. And for most, it all boils down to cost.If you’re in the maximum-insurance-for-all-time camp, you want as much protection as you can get. You see no expiration on your desire to be insured, and you have no problem paying for it.
However, if you lean towards just-the-minimums-ma’am, you begrudgingly pay for just what’s legally required. You would rather do anything else with your money.
Table of contentsWhere Insurance Fits into Your Whole Personal EconomyEveryone Wants InsurancePerception of Cost vs. RealityThe Panoramic ViewPreviously in This SeriesThe Questions We’re Answering TodaySelf-Insuring is The Opposite of InsuranceThe Limitation of NeedsYou Retain Risk When You Self-InsureReasons You Want Insurance#8) It Costs More to be Self-InsuredThe Cost of Being Uninsured vs. the Cost of InsuranceThe Full Cost of ReplacementThe Cost of Insurance#9) Self-Insurance Creates Stagnant AssetsLost Earning PotentialThe Cost of Lost Production#10) Protection Is One of Your Good ExpensesConsumptive ExpensesProductive ExpensesDestructive ExpensesProtective Expenses#11) It’s Easier to Keep What You Have Than to Make MoreIn ConclusionTake ActionWhat’s Up NextThe Whole Series on Insurance ProtectionCreate Your Time and Money Freedom
Where Insurance Fits into Your Whole Personal Economy
Let’s zoom out for a moment to remember where and why insurance fits into your Cash Flow System.
Your foundation starts with keeping more of the money you make. Second, you protect what you’ve built. Finally, you increase your income to create time and money freedom and expand your legacy.
Insurance fits in the protection stage. With it, your livelihood is no longer at risk, but secure, regardless of the life circumstances you face.
Your protection is like a roof on your financial house. When the shingles are sufficient and cover the whole house, it keeps storms outside your house, preventing them from getting inside and destroying your belongings. Similarly, when you have adequate insurance protection, your income and assets you’ve built are safe from financial storms that may occur in your life.
Everyone Wants Insurance
Let’s address one misconception so we can start off on the same page. The truth is that everyone wants insurance and as much of it as they can get.
Why?
If it were free, how much would you get?
You and just about everyone else would want it all. I think the lines would be even longer than the ones camped outside a new Chick-fil-A grand opening that give the first 100 a year of free chicken sandwich meals.
Now, we all know that we can’t get something for nothing. No insurance company would agree to that arrangement, because it’s unsustainable. They’d always lose money, go out of business, and that would put you right back in the same position of having no insurance.
Because there’s a cost to transfer risk, you now have to decide if it’s worth it to you.
Perception of Cost vs. Reality
On the surface, it appears there’s a positive correlation between the amount coverage and the cost. When the amount of insurance goes up, so does the price tag. Logically then, the way to achieve the lowest cost would be to have the least insurance.
Given that perspective, most people run the cost-benefit analysis throughout their life to calibrate how much coverage to have at any given point in time. They carefully measure needs and weigh the benefits and costs like two kids on an old-fashioned see-saw, looking for equilibrium. Do the benefits outweigh the costs or is it the other way around?
https://www.youtube.com/watch?v=zMY8I8FxEJ4
Insurance is about more than protecting your stuff. It’s about protecting your human life value.Often, your life insurance needs rank pretty close on the motivation list with you need to change the oil in your car.Here’s the filtering mechanism your brain goes through when you hear it: Not that pressing. Things are going fine without it. Why be inconvenienced to handle this non-urgent matter? Not that relevant. Out of sight, out of mind. Dismiss.
Right?
But what if I told you that the reason to change your oil in your car was not about your car at all? Changing your oil protects you, your peace of mind, and your ability to create value.
Table of contentsWhere Insurance Fits in Your Personal EconomyLast TimeReasons You Want Insurance#4) You Are Worth ProtectingWhat is Human Life Value (HLV)? How is Human Life Value Calculated For Life Insurance?An ExampleHuman Life Value Represents Your Ability to ProduceInsurance Protects Your Ability to Produce#5) Peace of Mind Allows You to Produce MoreHow Is Human Life Value Calculated?Expanding Human Life ValueYour Mindset Determines What You ProduceYour Human Life Value Never Ends#6) Protection Builds a Solid Foundation in Your Personal Economy#7) Insurance Ensures No One Life Event Can Make You PoorIn ConclusionTake Action to Protect Your HLVHere’s What You Can Expect NextThe Whole Series on Insurance ProtectionCreate Your Time and Money Freedom
Where Insurance Fits in Your Personal Economy
Let’s zoom out for a moment to remember where and why life insurance policies fit into your Cash Flow System.
Your foundation starts with keeping more of the money you make. Second, you protect what you’ve built. Finally, you increase your income to create time and money freedom and expand your legacy.
A Life insurance policy fits in the protection stage. With it, your livelihood is no longer at risk, but secure, regardless of the life circumstances you face.
Your protection is like a roof on your financial house. When the shingles are sufficient and cover the whole house, it keeps storms outside your house, preventing them from getting inside and destroying your belongings. Similarly, when you have adequate insurance protection, your income and assets you’ve built are safe from financial storms that may occur in your life.
Without changing your oil, you run the risk of thousands of dollars of irreparable damage that can be done when a car runs out of oil. Your nightmare of needing to replace a car fast is now upon you. While buying a new car should be fun and exciting, you now have to spend hours searching for the right vehicle just to bring your life back into equilibrium and normalcy. Basic transportation in your everyday life that was easy before now becomes a complicated algorithm of managing other people’s availabilities to find out how they can help you get from point A to point B.
This seemingly menial task of preventative maintenance is now all-important. It’s not really about the car, but about protecting your peace of mind, and saving yourself the worry and frustration.
Similarly, insurance is about more than just protecting your stuff. It’s about protecting you.
Last Time
In Why You Want Insurance Part 1 – Insurance Transfers Risk, we covered the first three of 11 reasons why you want insurance and discussed what insurance does.
When you don’t feel like you need insurance is the best time to secure it because when you do need it, you’ll wish you had as much as you could get.
Reasons You Want Insurance
4) You Are Worth Protecting
Have you ever asked yourself, what is the most important thing that I have?
Money? It could vanish tomorrow. Health? Time? Relationships? Happiness? Purpose? You’re getting closer.
Your most valuable asset is you.
You are the source of everything you create. You are the producer of all of your other assets: your home,
https://www.youtube.com/watch?v=iwgFlTbFI7Y
Rick Randall says that estate planning that works is not the norm, but it does not have to be that way. The goal of estate planning is to dictate how you will transfer the baton of your life’s wealth and wisdom to generations after you. With it, you ensure your legacy will live on, beyond you, rather than dissolving at your death.Estate planning that works gives you the ability to control, preserve and protect the wealth you’ve created when you’re no longer able to.
Love, Money, and Control says it like this:
With proper planning, you can control your financial and personal affairs while you are well and competent and leave instructions for how your affairs should be managed – in essence, still maintaining control – if you become physically or mentally disabled. Love, Money, and Control
With estate planning, you set plans in motion today to take care of the things that are most important to you, like your children, your health, and your money.
It is the most efficient way to transfer wealth with minimal loss and ensure your assets aren’t tied up in probate and chiseled away by taxes.
Where Estate Planning Fits into Your Cashflow Creation System
Encircling your family and assets with a bulletproof estate plan will maximize your peace of mind. But it’s just one small step of a greater journey of building time and money freedom.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund. This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.
Then, you’ll protect your money with savings, insurance and legal protection. This is where estate planning fits in. You’ll know that no matter what happens to you, your wishes will be carried out, your assets will remain intact, and your wisdom will empower generations after you.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.
The Overwhelming Majority of People Don’t Get What They Wanted
Overall, estate planning is a critical part of planning for the end of your life. It ensures what you want to happen will happen.
There are countless compelling reasons to do estate planning.
Yet, with all the reasons to plan, only about 30% of Americans have an estate plan in place.
That's because it’s one of those things that’s easier not to do.
Firstly, it’s uncomfortable and distressing to think about the end of your life.
Secondly, we all know “that family” that fell apart because of an inheritance. Wealth transfer is often fraught with turmoil and conflict, and we don’t want that to happen to us. We’d rather ignore our dysfunction than confront it head-on. Often the family dynamics invite a tension and disagreement about how the money will change hands, who will receive what, and how decisions will be made.
If you don't put your own estate plan in place, your state will give you one by default, and it won't be what you want.
Of those who do plan, many of those estate plans have very little chance of working.
Your Most Important Estate Planning Questions Answered
We brought Rick Randall, Founder of Randall Gentry & Pike, and Chairman and CEO of the National Network of Estate Planning Attorneys, onto the show to tell you why most estate plans don’t work, what to do instead, and to answer:
Why should I do estate planning?Who is estate planning for?How do I make sure my estate plan will work?What will make my estate plan of the greatest value to me and generations after me?What is estate planning that works?
An Innovative Estate Planning Leader
https://www.youtube.com/watch?v=sHtxT74llfU
Throughout civilization, people have created tools to transfer risk, protecting themselves from negative circumstances. This is the core function of insurance: to transfer risk. It’s what makes insurance not only something you want but something to love.However, many people have a misguided and negative view of insurance, being inadequately insured or uninsured altogether. As a result, they live with more worry, fear, and doubt because of the possibility of loss. Consequently, they limit their potential.Let’s open up the dialogue and approach the topic from an abundance perspective, to learn why the wealthy value protection, and why you should too.
Spoiler alert: it’s because the benefits of protection extend far beyond the coverage itself.
Table of contentsWhere Transferring Risk Fits into Your Whole Personal EconomyWhy Most People Hate InsuranceWhy We Love InsuranceReasons You Want Insurance#1) Protection Allows You to Transfer RiskWhat Types of Risk?Options in How to Approach RiskAccept RiskAvoid RiskMitigate RiskTransfer RiskThe History of Transferring Risk#2) Protection Creates Peace of MindPeace of Mind Is Linked to CertaintyLife Is Uncertain and FragileProtection Creates Financial CertaintyOur Personal Insurance Journey#3) The Best Time to Transfer Risk Is When There’s No Imminent RiskWhen You Need InsuranceFrom the Insurance Company’s PerspectiveWhen You Can Get InsuranceIn ConclusionTake ActionHere’s What You Can Expect NextThe Whole Series on Insurance ProtectionCreate Your Time and Money Freedom
Where Transferring Risk Fits into Your Whole Personal Economy
Let’s zoom out for a moment to remember where and why insurance fits into your Cash Flow System.
Your foundation starts with keeping more of the money you make. Second, you protect what you’ve built. Finally, you increase your income to create time and money freedom and expand your legacy.
Insurance fits in the protection stage. With it, your livelihood is no longer at risk, but secure, regardless of the life circumstances you face.
Your protection is like a roof on your financial house. When the shingles are sufficient and cover the whole house, it keeps storms outside your house, preventing them from getting inside and destroying your belongings. Similarly, when you have adequate insurance protection, your income and assets you’ve built are safe from financial storms that may occur in your life.
In this series, we’ll show you the 11 reasons why you want to protect your money, and answer:
What does insurance do?Why does it matter? Why protect my money when I could just make more instead?Is the cost worth it?With limited resources, how do I prioritize paying for protection?What protections are important and why?
Today, we’re exploring the topic of risk, our relationship to risk, and the ideal timeframe to transfer risk.
Why Most People Hate Insurance
Health insurance, auto insurance, disability insurance, life insurance, homeowner’s insurance, professional liability insurance, umbrella insurance, worker’s compensation, business overhead expense insurance, business owner’s insurance, long-term care insurance, gap insurance, key man insurance, critical illness.
Feel like you need a shower yet?
If you’re like most people, the thought of insurance brings up feelings of dread. The desire to escape all the horrible things that could happen, along with their consequences has us succumbing to spending hundreds of dollars that we don’t want to spend.
Insurance seems like a labyrinth of confusion, where you pay exorbitant premiums, get nothing in return, and the insurance company always wins.
Many weigh the risks and decide the event is unlikely enough that they forgo the insurance altogether.
Protection through insurance and legal planning is often seen as a necessary evil. You want it, but it’s expensive and time-consuming,
https://www.youtube.com/watch?v=K3ViNmCBEaM
In this episode, we asked Richard C. Wilson, the CEO of the Family Office Club, to share his experience in coordinating the wealth teams of multimillionaire and billionaire families.
There’s a divergence between the investing strategies of the status quo and those of the ultra-successful. The ultra-wealthy leverage a family office model so they can focus their efforts on what they do best. Viewing wealth as a team sport allows you to stay focused and do what you love. Most people use common financial thinking. This has them feeling out of control, losing money, hanging on for the ride, and hoping everything works out.Instead, the ultra-wealthy have a completely different set of rules.
There’s a divergence between the investing strategies of the status quo and those of the ultra-successful. The ultra-wealthy leverage a family office model so they can focus their efforts on what they do best. Viewing wealth as a team sport allows you to stay focused and do what you love. Most people use common financial thinking. This has them feeling out of control, losing money, hanging on for the ride, and hoping everything works out.Instead, the ultra-wealthy have a completely different set of rules.
If you follow the status quo, you’ll get status quo results.
But if you want to create a life of wealth and freedom, learn from those who have created it. And do what it takes to follow suit.
Table of contentsWhere Investing Fits into the Cash Flow SystemFamily Office: A Window into the Strategies of the Ultra-WealthyThe Big PictureRichard C. Wilson: Family Office Advisor for Multimillionaire and Billionaire FamiliesWhat Is a Family Office?How to Invest like the WealthyCreate Wealth, Don’t Just Manage ItFocus, Instead of DiversifyingConsciously Choose What You LoveDefine Success by What You Can Do, Not by What You HaveBecome a Titan in Your IndustryAlways Have Ready Access to CapitalAttract the Right Deals and Add Strategic ValueA Successful Family Office Knows Their MissionInvest According to Your Investor IdentitySay “No” Most of the TimeDon’t Want to RetireOther Topics Discussed in the PodcastFind out More About Richard C. Wilson and The Family Office ClubThe 7-Part Saving and Investing SeriesStart Creating Your Legacy Now
Where Investing Fits into the Cash Flow System
We love cash flow. Cash flow today is the stepping stone for cash flow tomorrow.
In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money. Finally, you increase and make more.
Investing is part of stage 3. Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.
Family Office: A Window into the Strategies of the Ultra-Wealthy
We’re making it easy because we’re bringing the financial world of the ultra-wealthy in close to give you the opportunity to see it for yourself.
Like studying something under a microscope, here’s your window into elite investing. You'll have the opportunity to touch, feel, and explore it for yourself.
To achieve the extraordinary time and money freedom you desire, learn the way the wealthy think about investing. Study their principles, their reasons, their goals, and their why. Look through their lens and find out how they see the world differently.
Instead of honing your investing through blood, tears, and poor decisions, learn how to invest like the wealthy.
When you see what they are doing, you can model their decision-making. This allows you to accelerate your wealth creation beyond the limits of what you thought was possible.
We’ll answer:
How do the ultra-wealthy invest differently than anyone else?How do they focus on what they know and can control?Why the ultra-wealthy value liquidity?How do the ultra-wealthy view diversificationWhat is the importance of a family mission, values, goals, objectives,
https://www.youtube.com/watch?v=Of6dysqMJ04
In a sea of investment choices, it can be overwhelming to determine which are the best investments for you. But don’t let overwhelm keep you in the dark, procrastinating, making mediocre decisions, losing money, and perpetually frustrated. The first step to confident investing is having a clear picture of exactly what you want and WHY. Knowing what you want allows you to set goals that will advance you towards your destination and measure your progress. Secondly, prepare. Next, you need to be armed with the tools to identify opportunities that match. Finally, you implement, measure progress, and repeat.
Define successPrepareIdentify opportunities that matchImplementMeasure progressRinse and repeat
Table of contentsWhere Investing Fits into the Cash Flow SystemHow Do I Determine the Best Investments for Me?Asset CategoriesPaper AssetsCommoditiesReal EstateBusinessThe Tale of Two InvestorsThe Frustrated InvestorThe Actualized InvestorTwo Views of InvestingExternal Investing Is About PickingInternal Investing Is About Being the Person Who Invests WellWhat Investments AreWhat Is the Value Proposition?Investing Is About PeopleYou Are Your Own Best InvestmentYour Greatest Value: Your Unique AbilityThe Formula for Financial SuccessThe Magic Ticket: Investor IdentityThe #1 Secret to Lowering Investment RiskActive vs. Passive InvestingYour Second-Best InvestmentInvesting Outside Your ExperienceFocus vs. DiversificationBest Investments Thinking ExercisePassionKnowledgeUnderstand the Value PropositionControlCash FlowThe Unpardonable Sin of InvestingIn ConclusionHow Investing and Saving Work TogetherTake ActionThe 7-Part SeriesCreate Your Time and Money Freedom
Where Investing Fits into the Cash Flow System
In the Cash Flow System, you first keep more of the money you make. Then you protect your money. Finally, you increase and make more.
Investing is part of stage 3. Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.
In the last article, Saving vs. Investing: What is Investing? Part 1 – Cash Flow, we’ve illustrated the power of cash flow in creating financial freedom.
Before that, we discussed the preparation of habitual saving that allows you to build usable capital.
Today, we’ll help you select your opportunities by answering:
How do I determine the best investments for me?How do I minimize risk?
We’ll help you determine investment options for you by showing you that the answer lies in the most unexpected place.
And then we’ll give you the #1 secret to lowering your investment risk.
How Do I Determine the Best Investments for Me?
Now that you have a vision for what you want your investments to do, let’s go shopping. How do you figure out what the best investment options are?
Asset Categories
Instead of narrowing down your choices, we first need to expand the options. Unfortunately, what you’re typically offered is like seeing the appetizer menu only, when there’s a full range of salad, soup, entrée, dessert, and cocktail menus to choose from.
While you may have been led to believe that your options are all housed in the stock market, the world of investing is much broader.
There are four main asset categories to choose from:
Paper AssetsCommoditiesReal EstateBusiness
Paper Assets
Paper assets include stocks, bonds, mutual funds, options, savings accounts, and the forex market.
Within this category are equities (stocks), fixed income assets (bonds), and cash equivalents that include money market accounts.
Often, paper assets are wrapped into a basket of mutual funds with various risk levels.
There are many ways to invest in the stock market, including using a broker or through an individual brokerage account. Strategies range from buy-and-hold, to options trading with puts and calls.
Commodities
Commodities are real, hard assets like gold,
https://www.youtube.com/watch?v=gyCnJkfwNbU
Many successful REALTORS® struggle when it comes to planning for the future. They have high incomes, live an upper-middle-class lifestyle or better, build growing businesses. However, they don’t have a plan for future income that they’re confident will lead to financial freedom. This is no truer than in the REALTOR® community. More than 50% of REALTORS® are broke at the end of their career. They’re making good money, but overpaying in taxes, spending too much of their money, and don’t have cash flow. 50% don’t own their own homes. Most want to invest in real estate to build multiple sources of income, but don’t have the capital to invest.
This problem has come to the attention of NAR, the National Association of REALTORS®, a 1.2-Million-member Trade Association. NAR’s leaders have recognized the need for financial planning among its members, saying “REALTORS® are successful in their careers, but struggle when it is time to retire.”
Where Financial Education Fits into the Cash Flow System
At The Money Advantage, we are a community of wealth creators. We are entrepreneurially-minded business owners who are taking control of our lives and financial destiny. We have a compass that always points back to the principles of wealth, not just to strategies or products. You need the right mindset, philosophy, and principles of abundance, expansive thinking, creation, cash flow, and control in place first before any financial tactics can genuinely benefit and serve you.
In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money. Finally, you increase and make more.
This conversation on personal finance, and principles of wealth creation fits right into the very first step of the first phase.
2017 National Association of REALTORS® Financial Planning Goals
This year, NAR has plans to focus on this problem. They’ve mobilized an advisory group in 2017 to develop programs and ideas to help their members start planning as early as they can to save for a strong financial future.
In keeping with The Money Advantage’s purpose to empower business owners with financial education to increase their cash flow and control of their financial resources and accelerate their journey to financial freedom, we are actively creating solutions that address this need.
To discuss solutions and a way forward for REALTORS®, we interviewed Moses Seuram, REALTOR® and the 2018 NYSAR (New York State Association of REALTORS®, Inc.) President-Elect.
REALTORS and other business owners can glean from this conversation and be empowered to create financial freedom.
From the Vantage Point of a Working REALTOR® and Local and National Leader
Moses’ unique vantage point gives him the credibility to participate in creating the solution.
He’s earned his way, not only as a successful REALTOR(R) but also as an accomplished leader who’s volunteering and giving back to his community.
His accomplishments include:
Licensed Real Estate Associate Broker with KeystoneRealtyUSA2018 NYSAR (New York State Association of REALTORS®, Inc.) President-Elect2013 President of LIBOR (Long Island Board of REALTORS®)2013 YPN (Young Professionals Network) Top 20 Under 40 Lifetime Achievement Award2009 – 2016 REALTORS® Honor Society2010 REALTOR® Salesperson of the YearTreasurer for The Long Island REALTORS® Federal Credit UnionDirector, National Association of REALTORS®Executive Director, New York State Association of REALTORS®
Along with the National Association of REALTORS®, Moses has also played an integral role in lobbying for key provisions for homeowners and REALTORS® in the 2017 Tax Reform.
Additionally, he is a successful real estate investor who’s taking control of his financial life and living the principles of Prosperity Economics. He models and teaches the value of paying yourself first,
https://www.youtube.com/watch?v=NDYuAcl2qVA
Most investing returns fizzle far beneath our expectations. When we most want our money to generate cash flow, we end up flatlining, or even losing money. The prosperity and confidence we'd hoped for elude us, leaving us more anxious and uncertain instead. Could it be that we have our sights on the wrong target? Let's take a look at investing from a cash flow perspective to untangle the confusion and bring you investing clarity.
You need to understand why this investing performance failure occurs, in order to overcome it, get your money working for you, and create the financial peace and prosperity you desire.
This segment on investing tells you how.
Table of contentsWhere Cash Flow Investing Fits into the Cash Flow SystemWhy Investing Is the Finale and the Catalyst of SavingSaving and Investing, Better TogetherWhat Is Investing?How Is Investing Different from Saving?The Purpose of Investing: Two Types of GrowthA Word to the Wise: The Ultimate Goal of All Investing Is Cash FlowHere’s an Example:Accumulation-Based InvestingCash-Flow InvestingCash-Flow Investing Accelerates Financial FreedomCash Flow Investing Increases Net WorthA Closer Look at Your Financial StatementsIn ConclusionUp NextThe 7-Part Saving and Investing SeriesTake Action
Where Cash Flow Investing Fits into the Cash Flow System
We love cash flow. Cash flow today is the stepping stone for cash flow tomorrow. In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money. Finally, you increase and make more.
Investing is part of stage 3. Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.
Why Investing Is the Finale and the Catalyst of Saving
This article fits into a larger series on saving and investing.
We’ve explored the WHY, HOW, and WHAT of a successful savings strategy. We gave clear guidelines on how to create the habit of paying yourself first to build an Emergency/Opportunity Fund that’s safe, liquid and growing. We distinguished savings from investing and discussed the quality of various financial vehicles in fulfilling the role of savings.
But the discussion on savings wouldn’t be complete without a framework for what to do with your savings. Instead of leaving savings to accumulate slowly over time, we want to put those dollars to work in opportunities to accelerate financial freedom.
Putting our capital to work to earn a return is precisely the role of investing.
Saving and Investing, Better Together
You don’t save forever without the objective of putting the dollars to work. But you can’t put dollars to work until you’ve built them up first.
And then, once you’ve invested and are earning dollars with your dollars, how do you continue your savings habit which was the foundation for your success in the first place?
Saving and investing go hand-in-hand, like the chicken and the egg. Which came first, no one knows, but each continues to support and perpetuate the other.
Saving well will give you more money to invest. And investing well will, in turn, give you more money to save.
Both are equally important. Saving and investing maximize your whole personal economy, if you get them working together.
To top off this series on savings, we’ll now bring investing into the crosshairs. This article will explore the WHAT and WHY of investing.
Let’s key in on the finer points of investing to answer further:
What are opportunities?What is investing?How is investing different from saving?What are the end goals of investing?How do investments change my financial life and create financial freedom?
Investing is much larger than the steps of a deal, investment returns, or the best stocks today. If you camp out in the HOW and WHAT but miss the WHY and the principles, you can end up way off track, losing money,
https://www.youtube.com/watch?v=qZrpe_0rpVU
We interviewed Kevin Clayson, author of FLIP the Gratitude Switch. He has made it his life’s work to empower people with a powerful, tangible formula that puts gratitude to work.
Gratitude is a key ingredient in the abundance mindset recipe required for building a life and business you love. It’s like the yeast in a bread recipe or the coffee beans in the coffee. In fact, I’d go so far as to say it’s the elixir of life. It has the power to heal, elevate, bring clarity, create solutions, expand love, and increase your personal power. It’s miraculous when it’s applied.But for many of us, gratitude is plentiful when things are going well, and non-existent when we face problems. In the difficult moments, gratitude seems unattainable.
So, we chalk it up to good intentions and cutesy idealism that doesn’t work.
This conversation will help you believe again in gratitude's astonishing power and put it into action with a simple formula.
Table of contentsWhere Your Mindset Fits into the Cash Flow SystemThe Chief Officer of Awesome: Kevin ClaysonMindset Is EverythingGratitude Is ActionFrustration Is InevitableGratitude and What We Do in the MomentKevin Clayson's FLIP FormulaGratitude and The Power in Your Decision PointUnlocking the Power of GratitudeFind out More About Kevin ClaysonElevate Your Financial Life
Where Your Mindset Fits into the Cash Flow System
At The Money Advantage, we are a community of wealth creators. We are entrepreneurially-minded business owners who are taking control of our lives and financial destiny. We have a compass that always points back to the principles of wealth, not just to strategies or products. You need the right mindset, philosophy, and principles of abundance, expansive thinking, creation, cash flow, and control in place first before any financial tactics can genuinely benefit and serve you.
In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money. Finally, you increase and make more.
This conversation on the mindset, philosophy, and principles of wealth creation fits right into the very first step of the first phase.
The Chief Officer of Awesome: Kevin Clayson
Kevin Clayson is the President and Owner of Gratifuel, LLC and the Co-Founder and Director of Content and Marketing at Done for You Real Estate USA. Kevin is an international professional speaker who shares his simple formula for unlimited joy and fulfillment.
He has spoken to thousands of Middle School and High School students and is also a highly requested business and corporate speaker. He has shared the stage with some of the biggest names in the personal development, speaking, coaching, business, and author world.
Kevin Clayson's message is guaranteed to inspire you through stories of real-life experiences as a husband, a father, a multi-million-dollar business owner and the world's ONLY Chief Officer of Awesome!
Mindset Is Everything
I learned this truth about money from a mentor:
Mental Capital X Relationship Capital = Financial Capital
Your financial success is the result of your mindset and relationships. Your mindset creates your financial outcomes. An abundance mindset is the cause of financial abundance, not a result of it.
Further, your mindset and relationships are the limiters on your financial success.
If you want to create financial abundance, begin by making constant, incremental, daily improvements in your mindset.
Gratitude Is Action
The main reason why gratitude seems whimsical and fairy-tale-like is that it’s invisible and we don’t comprehend it.
It’s easy to be grateful for things when life seems to be going our way. But what then of those times when what we wish for seems to be far out of reach? Could I suggest that we see gratitude as a disposition, a way of life that stands independent of our current situation?
What Is Savings: Why We Need a Definition
https://www.youtube.com/watch?v=Fs6S8Kfwy8Q
In all the financial pressure you feel to plan for the future, have you ever stopped to consider, fundamentally, what is savings? Often the answer is in asking the right questions. Concerning great issues, this is one that will behoove you to ask, understand, and answer that question for yourself.Savings is a precept of wealth-building. It’s a foundational cornerstone and precursor to success in almost every other area of personal finance and economics.
And yet, frankly, the savings levels of American adults are embarrassing. Most people’s bank account languishes far beneath the level of what they want to have.
According to a 2016 GOBankingRates survey, 34% of all adults in the U.S. have $0, 35% have less than $1000, and ONLY 15% have $10,000 or more.
There’s a disparity between our desire to save and the amount we have. For that reason, our mindset about savings becomes laden with guilt.
To add insult to injury, there’s confusion about what savings, in fact, is.
It’s pretty hard to achieve something you don’t feel good about or have a clear definition of. It will continually be “un-prioritized.”
Table of contentsWhat Is Savings: Why We Need a DefinitionWhere Savings Fits into Your Cashflow Creation SystemThe Nuts and BoltsRelated Articles and Podcast EpisodesOur Definition of Savings Needs WorkThe Starting Point of Cash FlowThe Cause and the Remedy for Lack of Cash FlowSavings: What to Do with Cash FlowSafety vs. the Chance of LossThe Distinction Between Savings and InvestmentsThe LUC TestA Measure of the Quality of SavingsApplying the Savings TestAccounts That Are Not True SavingsRetirement Accounts like the 401(k), 403(b), 457, IRA, Roth IRA, and SEPHome EquityAccess to Capital Through Lines of CreditAccounts That Are True SavingsBank Accounts & Credit Unions: Savings Accounts, Checking Accounts, CDs, and Money Market AccountsTreasury Bills, Notes, and BondsCash Value of Life InsuranceMake It Easy to SaveAutomatic Savings Gives You the Power to Make Deliberate Investment ChoicesImprove the Quality of Your SavingsUse This Exercise to See How Your Savings Stack UpTake ActionHere’s What You Can Expect NextThe 7-Part Saving and Investing Series
Where Savings Fits into Your Cashflow Creation System
Building a stockpile of savings is to help you weather months of tight income or unforeseen expenses will move you light years ahead towards peace of mind and financial stability. But it’s just one small step of a greater journey of building time and money freedom.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, and cash flow awareness. This step frees up and increases your cash flow, so you have more to save and invest.
Then, you’ll protect your money with savings, insurance and legal protection. Here, you’ll create the right canopy of protection in your financial life. This second stage encompasses all aspects of Privatized Banking, a key savings and capital deployment strategy that secures your access to capital, maximizing your control, by allowing you to be your own banker.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.
The Nuts and Bolts
To clear the air and help you save more, let’s get down to brass tacks.
We’re tackling what savings is and what it isn’t. We’ll answer:
What is savings and what is it not?How do I know if it’s savings?Where can I save my money?What are the best places to save money?
And we’ll share the four top reasons why people aren’t saving, to help you overcome them and set you on a course to financial confidence and freedom.
The foundations are the most important pieces to get right.
https://www.youtube.com/watch?v=W1UpHGh7Pf0
Trump's tax reform has made a lot of big changes to the tax code. Because of the overhaul, our proactive tax team posted a series of blogs outlining the changes and what they mean for you. When we read them, we knew right away that we wanted to share them with you. So, we brought Dustin Griffiths back on the podcast to share the changes we think are most relevant to the small business owner. We're also sharing the links to all of their blogs to help you gain more clarity.
Disclaimer: We've published this content for educational purposes only. For individual recommendations and advice for your specific situation, please consult with a qualified tax professional.
Listen to the Podcast
This conversation expanded on each of the following topics. We discussed examples and situations to help you understand how the changes will apply to you. To gain the greatest understanding, be sure to listen to the conversation.
Where Taxes Fit into the Cash Flow System
Strategically (and legally) shrinking your tax liability is a huge part of fixing your money leaks. But it’s just one small step of a greater journey of building time and money freedom.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund. This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.
Then, you’ll protect your money with savings, insurance and legal protection. Locating and solving your money leaks is just a temporary bandaid if there’s risk that you could lose it.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.
How Trump's Tax Reform Affects You
Corporate Tax Rates
Corporate tax rates went down from 34% to 21%. However, C corps pay a double tax. They're taxed at the corporate level and again at the individual shareholder level when you pay yourself. Your total tax rate must account for both, and may effectively create a total tax rate of 36 - 51%.
20% Deduction for Pass-Through Entities
Pass-through entities, like partnerships, S corporations, and sole proprietors, now will only have to claim 80% of business taxable income. However, there are additional calculations if your AGI is over $315K or ($157K if you're single), and for service-based businesses, to determine if and how you can use this deduction.
This is a “YUGE” tax savings for many small business owners! Without doing anything differently, many of you are going to get a 20% reduction of your business's taxable income.
Vehicle and Asset Purchases
Asset purchases have received an expansion of the Bonus Depreciation and Section 179 definition, as well as the depreciation limits. This allows you to deduct 100% of the depreciation up front, in many cases, being able to fully expense the purchase price in the first year, for new and used assets.
This expansion puts more dollars in your pocket for large asset purchases. However, the true test to determine whether to purchase an asset is whether you needed it in the first place.
Business Expense Changes
You can no longer deductions meals and entertainment expenses unless you use them for your employees.
If you find that you had a lot of these entertainment expenses or eating out with clients, business just got more expensive.
Changes in Real Estate Tax Laws
For residential or commercial real estate investors, the reform simplified the definition of property improvements and limited the 1031 like-kind exchanges to real property. Additionally, rules to inventory, including real property, allow you to deduct the purchase of inventory up-front...
https://www.youtube.com/watch?v=AYUG9Qttgq4
If you want to seize opportunities like the wealthy, you will need to learn how to save money like the wealthy. Building a financial system is a lot like barrel racing.Far away from the roar of audiences, the outcome of the race is determined by the hours of preparation and conditioning spent outside the ring, out of the public eye, before the race.Likewise, in building true wealth, developing a savings plan is the preparation and conditioning it takes to succeed.
Table of contentsWhere Savings Fits into Your Cashflow Creation SystemEverything I Needed to Know I Learned from Equestrian Barrel RacingWhere Winning HAPPENSWhere Winning Is CREATEDWinning Is in the Fundamentals and Conditioning, Not the Climax Your Savings SystemWhy Most People Never Save MoneyOvercome Parkinson’s Law by Living on Less Than You Earn, Starting TodayThe Role and Function of Savings For You and Your FamilyA Simple 5-Step Strategy to Save More Money3 Target Cash AccountsHow Much to Have in Bank SavingsHow Much Do I Need in My Emergency Fund?Never Stop Building Your Opportunity FundSDLIC: An Ideal Storage Tool for Your Emergency and Opportunity FundsPreparation and Conditioning Translate to Both Business and Personal EconomiesUp Next in This SeriesFor More Ways to Save Money Check out the 7-Part Saving and Investing SeriesBook a Strategy Call
Where Savings Fits into Your Cashflow Creation System
Building reserves helps you weather months of tight income or unforeseen expenses, and will move you light years ahead towards peace of mind and financial stability. But it’s just one small step of a greater journey of building financial freedom.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cashflow awareness, and restructuring how you save money so you can access it as an emergency/opportunity fund. This step frees up and increases your cashflow, so you can save, and then use the extra cash to take advantage of opportunities.
Then, you’ll protect yourself with insurance and legal protection. Here, you’ll create the right canopy of protection in your financial life. This second stage encompasses all aspects of the Infinite Banking Concept, a key cashflow strategy that secures your access to capital, maximizing your control, by allowing you to be your own banker.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build freedom and leave a rich legacy.
Everything I Needed to Know I Learned from Equestrian Barrel Racing
As a teen, I rode horses. I got into competitive racing in speed and agility games like barrel racing, pole weaving, and keyhole.
Just about everything I needed to know about life, I learned from the process of training to win in the ring.
Where Winning HAPPENS
The climax of barrel racing was the high-adrenaline, crowd-cheering, dirt-flying 28 seconds careening around the cloverleaf pattern of the barrel racing course. Or it was the 11 seconds spent in the ring flashing through the pole-weaving course.
I lived for that part. The moment of truth. It’s where the winning happened.
From a spectator’s vantage point, it would be so easy to think it was the only part that mattered.
Where Winning Is CREATED
However, far more critical to the outcome were the hours upon hours of training and preparation.
To perform well, conditioning was essential.
There were warm-ups and cool-downs at a brisk trot. We raced for miles upon miles across varied terrain to build endurance and stamina. There were hundreds of hours of rides through the fields and forests, on trails, through swamps, and over fallen logs as we built agility and light-footedness.
We took hundreds of practice runs at all paces, focusing on the fundamentals. There were lurching starts,
https://www.youtube.com/watch?v=CI2eDBJqyHY
Jimmy Vreeland is maximizing his real estate returns by using the premier financing strategy of the wealthy. As stand-alone tools, both real estate and high cash value life insurance are top-notch. Their powers of cash flow, appreciation, equity, leverage, tax advantages, and a hedge against inflation are unrivaled by any other product.But when you combine these two high-quality assets together, your money does two things at the same time. This gives you an unfair advantage parallel to none.
If you’re a believer in one or the other, see how using these two assets symbiotically will supercharge your results.
Table of contentsWhere Real Estate Returns Fit in the Cash Flow SystemTwo Starting Points to the Same BridgeThe Advantages of Real Estate ReturnsThe Beginnings of a Real Estate Lease Options EmpireProviding Value to Tenants and InvestorsA New Lease on Life for TenantsReal Estate Returns (Cash Flow) for InvestorsLife Insurance: A Parallel AssetSatisfying the Investor’s Need for LiquidityThe Advantages of Cash Value Life Insurance as a Funding Source to Boost Real Estate ReturnsPlugging the Two Assets TogetherStarting with Life Insurance and Adding Real Estate ReturnsStarting with Real Estate Returns and Adding Life InsuranceFind out More in the PodcastPodcast ResourcesLearn More About Privatized BankingCreate Your Time and Money Freedom
Where Real Estate Returns Fit in the Cash Flow System
We love cash flow. Cash flow today is the stepping stone for cash flow tomorrow.
In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money. Finally, you increase and make more.
Investing is part of stage 3. Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.
Two Starting Points to the Same Bridge
You may be starting from one pillar or the other.
On the one hand, perhaps you have cash value life insurance. You want more than just to let the money sit in the policy. You’re asking: How can I use my cash value life insurance to invest in cash-flowing real estate to accelerate my financial freedom?
On the other hand, perhaps you are a real estate investor. You want to finance most efficiently to increase your gains. You’re asking: How do I amplify my real estate returns, by financing through cash value life insurance?
We found no one better to help you understand this strategy than Jimmy Vreeland. He's a real estate investor who is exploding his real estate returns by building a bridge between these two assets.
Jimmy Vreeland is a passionate real estate investor who is helping other investors to reap the rewards of real estate investing.
The Advantages of Real Estate Returns
Jimmy Vreeland was an Army Ranger and US military officer who read Rich Dad, Poor Dad while he was in Afghanistan.
He realized that he wanted to create systematic, scalable wealth through cash flow in a low-tax environment.
He wanted an asset that he controlled, where he could build wealth by creating value instead of gambling through investments on Wall Street.
All the indicators pointed to real estate.
Consequently, he bought his first property in 2006 and began adding one property per year.
The Beginnings of a Real Estate Lease Options Empire
In 2014, Jimmy Vreeland and Bob Scott, both former US Military officers and Academy Graduates, partnered to create Joint Ops Properties. To capitalize on unique opportunities in the US Real Estate market.
Joint Ops is now a leader in lease option investment properties. They have decades of combined experience behind them, with an emphasis on the St. Louis area.
Joint Ops Properties has been able to secure over 160 distressed properties. AND another 40 turnkey properties, often at just 30 to 40 cents on the dollar. Joint Ops currently focuses on single-family homes and tenants seeking ...
https://www.youtube.com/watch?v=5PK5HP8mgFw
The concept of holding cash – savings – is such an intricate, multi-faceted one. This series will walk you through the WHY, the compelling reasons to value and build cash savings. Then, we’ll show you how to apply it and reveal the key distinctions to keep you on track.If you have a great enough WHY, then figuring out what to do becomes important. But it all comes back to WHY.Since we love Simon Sinek’s Start with Why concept, we aim to apply it in everything we communicate. You may have noticed.
Table of contentsWhere Savings Fits into Your Cashflow Creation SystemReal Life Stories and Examples of the Ultra-Wealthy Who Have a Strong Cash PositionAn Empowering Philosophy of SavingLearn from SuccessThinking About Your ThinkingThe Responsibility to Develop Consciousness in Our MindsetThe Purpose of Your MoneyWatch What They DoThe Conservative Strategy of Suze OrmanMark Cuban Is 50% in CashWorld’s Largest Wealth Manager Says High-Level Investors Hold CashWhat’s Your Why?The Cash Flow Awareness Exercise: First Steps You Can DoUp Next …The 7-Part Saving and Investing SeriesCreate Your Financial Freedom
Where Savings Fits into Your Cashflow Creation System
Building a stockpile of savings is to help you weather months of tight income or unforeseen expenses will move you light years ahead towards peace of mind and financial stability. But it’s just one small step of a greater journey of building time and money freedom.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund. This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.
Then, you’ll protect your money with savings, insurance and legal protection. Here, you’ll create the right canopy of protection in your financial life. This second stage encompasses all aspects of Privatized Banking, a key savings and capital deployment strategy that secures your access to capital, maximizing your control, by allowing you to be your own banker.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.
Real Life Stories and Examples of the Ultra-Wealthy Who Have a Strong Cash Position
We know that theory without concrete evidence and facts to back it up is useless. In fact, it will probably just fade out of your mind like a sand castle washed away by the waves.
Today we're digging into some examples of the ultra-wealthy who are comfortable being in cash. They don't feel the need to be fully invested all the time.
We’ll discuss examples of Suze Orman and Mark Cuban, and their reasons for a strong position of safety and cash.
We’ll point you to a bank report showing that the super-rich with over $30 Million in investible assets often have about 35% of their total portfolio in cash.
And then, we’ll give you a Cash Flow Awareness Exercise you can do personally. It's the same exercise that we use for our clients to help them think through their spending so they can free up more surplus cash each month.
An Empowering Philosophy of Saving
In Why the Wealthy Love Cash, Part 1, we discussed many of the ideas and philosophy about WHY savings is not only relevant but also crucial to your success.
Cash savings creates peace of mind so you’re able to operate from a mindset of abundance and confidence. With that perspective, you'll make better decisions and have greater clarity.
Savings has guarantees. That creates more options in the future.
Because you have peace of mind and guarantees, you’re not desperate. You focus your time and energy on the right clients, activities,
Kim Butler is a champion of Prosperity Economics principles who's bringing them back into the mainstream. She’s revitalizing the traditional way of thinking, condensing age-old wealth principles into the 7 Principles of Prosperity. She helps people get their money doing more jobs and building wealth outside of Wall Street.She’s the owner of Partners 4 Prosperity, a Registered Investment Advisory firm dedicated to the Prosperity Economics Principles.Additionally, Kim serves as the co-host of the Prosperity Podcast and a best-selling author of 6 books, including Live Your Life Insurance and Busting the Retirement Lies.She’s recommended by financial thought leaders like Robert Kiyosaki and has been listed in Investopedia’s top 100 most influential financial advisors in 2017.
She’s been a tremendous influence on the philosophy and work of The Money Advantage, and we have the utmost respect for her.
In this interview, we discuss her backstory. You’ll see how she developed her financial wisdom and how her abundance mindset is allowing her to continue her objective to help as many people as possible in as many ways as possible.
Table of contentsWhere Prosperity Economics Principles Fit into the Cash Flow SystemBefore Kim Started Partners 4 ProsperityThe Assumptions of Typical Financial PlanningAn Entrepreneurial Journey That Started in 4th GradeGiving up a Designation to Provide More Guarantees and CertaintyBetter Than Typical Financial PlanningThe 7 Prosperity Economics PrinciplesWhy Savers Are WinnersPrinciples First. Then Strategy. Then Products.The Principle TestThe Multiple Facets of True ProsperityFailed Strategies of Typical Financial PlanningThe Three Objectives of MoneyAn Honest Look at Risk ToleranceWin-Win-Win InvestmentsThe Importance of Not Losing MoneyBeyond Building Her BusinessAn Abundance Mindset Expands Your VisionThe Value of Thinking for OurselvesHow to Find out More About Kim ButlerCreate Your Time and Money Freedom
Where Prosperity Economics Principles Fit into the Cash Flow System
At The Money Advantage, we are a community of wealth creators. We are entrepreneurially-minded business owners who are taking control of our lives and financial destiny. We have a compass that always points back to the principles of wealth, not just to strategies or products. You need the right mindset, philosophy, and principles of abundance, expansive thinking, creation, cash flow, and control in place first before any financial tactics can genuinely benefit and serve you.
In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money. Finally, you increase and make more.
This conversation on the Prosperity Economics principles of wealth creation fits right into the very first step of the first phase.
Here are the interview highlights:
Before Kim Started Partners 4 Prosperity
[3:30] Kim was a “typical” financial planner, with a Series 6 and 7 licenses to sell stocks, bonds, and mutual funds. She made her living creating and delivering financial plans.
When she became aware of the assumptions that made the plans unreliable the moment they were printed, she became disenfranchised with typical financial planning. She felt she was subjecting clients’ money to so much risk.
The Assumptions of Typical Financial Planning
[5:25] The client is responsible to project when they’ll want to retire, what exactly they would want to happen if they had died yesterday, what interest rate they expect to achieve, and what inflation rate they presume.
Because the foundation for the plans is complete guesswork, the plans have failed people as the roadmap they were intended to be.
An Entrepreneurial Journey That Started in 4th Grade
[6:53] When Kim was in 4th grade, her parents gifted her the raw materials for a business.
They gave her a milk cow and taught her how to milk by hand. She sold milk to friends and neighbors,
https://www.youtube.com/watch?v=g4f6nxH_eLE
Have you ever had conflicting thoughts about cash savings? You'd feel better with more savings, but you're not really sure it's a winning financial strategy. Savings is pure magic. Within its seed is infinite and tremendous potential. This article will help you see and unleash the power of savings to accomplish your financial goals.Savings is a value of the ultra-wealthy. Having savings – liquid, accessible, safe cash – is critical and relevant, even in today’s economy, even with boring returns.
But because the hard pull of the media, financial messaging, and what everyone else is doing points the opposite direction, saving often becomes snubbed and overlooked.
Savings certainly doesn’t have the most electrifying connotation, I know.
Because today's interest rates are at an all-time low, saving money seems wasteful. It seems you’re putting your money out of commission, letting it just sit on the sidelines.
In addition, financing is cheap and easy. It quickly becomes a go-to source of capital when you don’t have cash of your own.
To top it off, it seems like investments get higher returns than savings do, and that you’ll end up ahead if you invest instead.
But, could this be only part of the story?
Table of contentsWhere Savings Fits into Your Cashflow Creation SystemThe Big Why of Savings: It Protects Your MindsetDefinition of SavingsThe Litmus Test of Savings: Not Losing ValueAccount Value: Safe vs. RiskBuying Power: The Impact of InflationSavings Gives You Control, Which Creates ConfidenceSavings Allows You to Focus on the Right OpportunitiesAn Example: The Wrong Opportunities During Times of DesperationCapital Helps You Rebuild If You Lose EverythingBeing Prepared to Fail Well Allows You to Truly SucceedOpportunity Seeks LiquidityStrategies That Can Create False ConfidenceBudgetingBecoming Debt-FreePresent and Future Purposes in Holding CashA Different End Goal for Business Owners and EntrepreneursThe Savings Perspective of the Entrepreneurially-MindedTake Action by Writing down Your WhyAccelerate Your SavingsHere’s What You Can Expect NextThe 7-Part Saving and Investing SeriesCreate Your Time and Money Freedom
Where Savings Fits into Your Cashflow Creation System
Building a stockpile of savings is to help you weather months of tight income or unforeseen expenses will move you light years ahead towards peace of mind and financial stability. But it’s just one small step of a greater journey of building time and money freedom.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund. This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.
Then, you’ll protect your money with savings, insurance and legal protection. Here, you’ll create the right canopy of protection in your financial life. This second stage encompasses all aspects of Privatized Banking, a key savings and capital deployment strategy that secures your access to capital, maximizing your control, by allowing you to be your own banker.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.
The Big Why of Savings: It Protects Your Mindset
As we embark on this series about savings, we’ll walk through the reasons why having cash is so meaningful, from the perspective of the wealthy. It becomes apparent that they’ve thought differently than everyone who’s currently tethered to “average” status. It's enough to take notice.
The wealthy know how to build financial wealth. But they recognize that true wealth is a richness of mind, body, spirit, and relationships.
“Tax Empowered” vs. “Tax Scared”
It’s time to stop tipping the IRS and pay less in taxes legally, from now on.No one likes paying the IRS, but are you letting the government steal from you? If you aren’t strategic, tax deadlines can feel like doomsday. You’re stuck with hating that you pay so much in taxes or fearing you’re doing something wrong.But, there’s no need for the word “taxes” to have you tucking your tail and running for the hills.While the IRS is not your friend, the tax code can be. But it requires you to understand and apply the rules in your favor.If you don't want to pour through and interpret the IRS regulations on your own, you're not alone. The tax code is a bunch of legalese and linguistic judo.You need someone in your corner who wants you to pay less in taxes, legally.
A tax strategist can help you navigate the law with grace and efficiency. They embrace the tax code as a roadmap for reducing your taxes. And they're willing to stand up to the IRS on your behalf, helping you leverage the tax code. This helps you make strategic decisions that keep more dollars in your pocket.
Then, taxes seem less like a monster and more like an obstacle course to master.
Dustin Griffiths, at Incite Tax and Accounting, is one such tax strategist. He believes that you are the best person to steward your resources, not the federal government.
Table of contents“Tax Empowered” vs. “Tax Scared”Where Taxes Fit into the Cash Flow SystemPaying Less in Taxes Is Critical to Your Wealth StrategyLegally Rigging the Tax Game in Your FavorCorporate Rent: One Strategy Most CPAs MissClarity on Other DeductionsThe Rest of the Conversation on How to Pay Less in TaxesJust How Important Is Your CPA?Don’t Let the Tax Tail Wag the DogWealth Is a Team SportBook Your Strategy Session to Pay Less in TaxesContact Incite Tax
Where Taxes Fit into the Cash Flow System
Strategically (and legally) shrinking your tax liability is a huge part of fixing your money leaks. But it’s just one small step of a greater journey of building time and money freedom.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund. This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.
Then, you’ll protect your money with savings, insurance and legal protection. Locating and solving your money leaks is just a temporary bandaid if there’s risk that you could lose it.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.
Paying Less in Taxes Is Critical to Your Wealth Strategy
Maximizing your cash flow and control of resources is one of the top priorities at The Money Advantage.
Our expectation with tax planning is to be proactive and aggressively capture as many possible tax dollars that could be used in your own personal economy.
Tax decisions aren’t isolated choices in a vacuum. Every dollar you keep, instead of paying to Uncle Sam, is another dollar you can steward and use productively in your life.
Instead of feeling powerless, we want to equip you with the knowledge and education to pay less in taxes legally.
Legally Rigging the Tax Game in Your Favor
There is a line separating what is legal and what is not. Often, out fear and lack of understanding the tax code, many other tax professionals stay far away from the line.
Dustin and the Incite team confidently walk right up to the line. If it’s in the tax code, they will use it for your benefit.
They aggressively find and apply the tax law to make sure you keep as much of your money as possible, this year and every year going forward. In this way,
Typical Financial Planning vs. Prosperity Economics
The Prosperity Economics Movement is a wholesome and positive remedy to the limitations, guesses, and fear-based typical financial planning.
On the one hand, the typical financial conversation holds an underlying opinion that you should give your money to someone else more qualified than you, put it aside for the future, not touch it or use it now, and hope things work out.
On the other hand, the abundance-centric, value-creating, opportunity-seeking perspective of Prosperity Economics puts money in your hands today. It validates that you’re the best person to be in control. Prosperity Economics relentlessly steers towards financial freedom by prioritizing cash flow over accumulation.
Refreshingly, it empowers you, the individual, with maximum control and certainty.
The prosperity perspective is a departure from the status quo of today and a return to the traditional way of thinking about and handling money. Similar to how people built wealth before the 1980’s, it encourages you to rely on your own business and put money in tools you know and control like savings accounts, whole life insurance policies, cash-flowing investments, and precious metals.
Table of contentsTypical Financial Planning vs. Prosperity EconomicsWhere Your Mindset Fits into the Cash Flow SystemHow’s Your Thinking?In Part 1In Part 21) Living Only on Interest vs. Spending and Replacing Principal2) Money Stays Still vs. Money MovesTypical Financial Planning Isolates MoneyProsperity Economics Values the Flow of Money3) Dollars Do Only One Job vs. Dollars Do Many JobsIn Typical Financial Planning Each Dollar Does One JobProsperity Economics Recognizes That One Dollar Can Do Multiple Jobs 4) Professional Financial Planner Is the Expert vs. Clients Are EmpoweredTypical Financial Planning Gives Control to the AdvisorProsperity Economics Emphasizes Client ControlListen to the PodcastEpisode ResourcesHow to Take Action
Where Your Mindset Fits into the Cash Flow System
At The Money Advantage, we are a community of wealth creators. We are entrepreneurially-minded business owners who are taking control of our lives and financial destiny. We have a compass that always points back to the principles of wealth, not just to strategies or products. You need the right mindset, philosophy, and principles of abundance, expansive thinking, creation, cash flow, and control in place first before any financial tactics can genuinely benefit and serve you.
In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money. Finally, you increase and make more.
This conversation on the mindset, philosophy, and principles of wealth creation fits right into the very first step of the first phase.
How’s Your Thinking?
Whether or not you’ve ever considered your way of thinking about money, you owe it to yourself to pause for a moment of reflection. Have you fostered your awareness of what you are allowing to influence your financial beliefs and perspectives?
We aim to help you develop clarity on your financial foundations and philosophy.
If your current mindset is not helping you create your ideal life, we give you the permission to think differently.
This article, in conjunction with Part 1, provides the basis for understanding the principles and beliefs guiding the typical money conversation and those behind the prosperity conversation.
In Part 1
In What Is Prosperity Economics? – Part 1, we
Dissected the false assumptions that are the foundation of typical financial planningIlluminated why financial planning has failedOutlined the four fundamental differences between the typical and the time-tested traditional financial paradigmsDiscussed the first eight of the twelve comparisons between financial planning and Prosperity Economics:
Meeting needs and goals only vs. pursuing wants and dreams
Do you know if you’re maximizing your business tax deductions? If the thought of the new year brings you tax anxiety, you’re not alone.
Many business owners fear tax season and the “day of reckoning” when they find out how much they owe to Uncle Sam.
No one likes to part with hard-earned dollars or wonder whether they may have overpaid.
To make matters worse, taxes seem like an endless maze of confusion. Blindly trusting a professional and hoping they’re doing everything in your best interest is a sure-fire way to feel disempowered and out of control.
In our work with business owners, one question rises to the forefront of all financial strategy – how do I pay less in taxes?
Overpaying taxes is one of the most impactful money leaks we see for business owners because their money is flowing out of their control.
Instead, we’re leaning into that dysphoria.
We believe that education empowers you with the confidence to take action and make better decisions.
Where Taxes Fit into the Cash Flow System
Strategically (and legally) shrinking your tax liability is a huge part of fixing your money leaks. But it’s just one small step of a greater journey of building time and money freedom.
That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.
The first step is keeping more of the money you make. This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund. This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.
Then, you’ll protect your money with savings, insurance and legal protection. Locating and solving your money leaks is just a temporary bandaid if there’s risk that you could lose it.
Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build financial freedom and leave a rich legacy.
Plan for Your Best Tax Year Yet
2018 is a brand-new year.
Instead of taxes being something that makes you cringe, we want to empower you with a mindset, tips, knowledge, and strategy to help you keep more of your money by leveraging the tax code and maximizing your tax deductions.
In this interview with Mark Schreiber, CPA and Tax Strategist with e3 Wealth, we discuss the best way to start 2018 prepared to make it your best year for tax savings.
Mark’s Background
Mark has worked in public accounting for 35 years.
In his work with small businesses and entrepreneurs, he focuses on doing taxes, tax planning, and estate tax planning. He’s been with one of the “large eight” CPA firms and joined e3 2 years ago.
Interview Highlights:
A lot of Tax Planning is Reactive:
At the end of the year, you hand over your books, your CPA crunches the numbers and gives you a tax return. It’s not often proactive, forward-looking tax planning that takes into consideration your specific business and plans with an objective to minimize taxes this year and every year going forward.
Tax Deferrals, Deductions, and Credits:
Tax deferrals reduce taxable income this year by postponing a portion of income to pay tax in the future instead. On the other hand, tax deductions reduce taxable income this year, and never come back to be taxed again. Tax credits shrink your tax bill dollar-for-dollar.
How to Save 15.3% on Your Taxes With 1 Strategy:
Many self-employed people are Sole Proprietors. They file a Schedule C and pay ordinary tax, PLUS 7.65% for the employee portion of FICA and Medicare, PLUS another 7.65% for the employer portion of FICA and Medicare. This additional 15.3% is referred to as the self-employment tax, and business owners pay it on top of regular income tax. A business entity taxed as an S Corp has a way to minimize the self-employment tax. After paying a reasonable salary to the business owner at the full self-employment tax rate,
Prosperity Economics has begun its renaissance as an alternative to typical financial planning. An increasing number of courageous, conscious, independent thinkers have outgrown typical financial planning.
They resonate with a different financial philosophy that provides more control, certainty, and permission to use their money now.
For them, the financial status quo has been losing its luster.
Its unfulfilled promises and failure to produce economic security have grown increasingly apparent.
Table of contentsWhere Your Mindset Fits into the Cash Flow SystemTypical Financial Planning Is Planning to FailUnsettled About Unanswered QuestionsThe Unstable Premises of Typical Financial Planning, DemystifiedTypical Financial Planning Assumption #1: You desire to feel great about your money means you want a plan for retirement.Typical Financial Planning Assumption #2: You can create a plan that will work, based on guesses about the future.Typical Financial Planning Assumption #3: You have to take on risk to earn higher returns.Typical Financial Planning Assumption #4: You hate your job, and want to retire.Typical Financial Planning Assumption #5: You are not smart enough to handle your own money.Typical Financial Planning Assumption #6: Investing means putting money in the stock market.Typical Financial Planning Assumption #7: Having access to your money isn’t important.Typical Financial Planning Assumption #8: You should build enough net worth so you can live off the interest in retirement.Typical Financial Planning Assumption #9: Everything works out exactly as you plan it.Typical Financial Planning Is not Supported by Simple MathematicsYou’ll Need Way More Money Tomorrow Than You’d ExpectYou’d Need to Save 97% of Your Income TodayEvery Unknown Requires More Money to Make Sure the Future Works OutYour Financial Dreams Are Lightyears Outside These LimitationsHere Is What You Didn’t Realize You’re Looking ForThe Antidote Is A Return to the TraditionalFour Primary Differentiators1) Can I Trust Myself?Take Control by Modeling the Bank2) Is Financial Freedom My Goal?Having Cash Flow Today Is the Starting Point of Having Cash Flow in the Future3) Do I Want to Retire?Retirement Is OutdatedWould You Retire if You Love Your Life, Just the Way It Is?4) How Do I Maximize My Whole Personal Economy?Listen to the PodcastEpisode ResourcesShare Your Thoughts and QuestionsCreate Your Time and Money Freedom
Where Your Mindset Fits into the Cash Flow System
At The Money Advantage, we are a community of wealth creators. We are entrepreneurially-minded business owners who are taking control of our lives and financial destiny. We have a compass that always points back to the principles of wealth, not just to strategies or products. You need the right mindset, philosophy, and principles of abundance, expansive thinking, creation, cash flow, and control in place first before any financial tactics can genuinely benefit and serve you.
In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money. Finally, you increase and make more.
This conversation on the mindset, philosophy, and principles of wealth creation fits right into the very first step of the first phase.
Typical Financial Planning Is Planning to Fail
All around, you notice people who have socked away money in retirement plans who are unable to retire. They’re working longer because they have to, giving up on the lifestyle they’d hoped for, or fearing running out of money.
You’re told it’s their fault because they haven’t saved enough.
But even the most diligent and disciplined savers have had wealth indiscriminately erased by the fickle tide of the market.
It seems impossible to get ahead, much less to win the financial game.
The incongruences are shocking. Many tried to ignore it, but you couldn't. No matter what you do, it seems like you’re swimming against the tide in a syst...
https://www.youtube.com/watch?v=dYURsXmE2lc
Robert Murphy discusses an out-of-the-box strategy, Infinite Banking, that complements the entrepreneur. He is an economist in an unconventional wrapper. His sense of humor and straight-talk help him convey the most difficult concepts with elegance and simplicity we can all understand. He’s a free market thinker with the courage to be contrarian.
He goes against the grain of the financial and economic status quo that marginalizes entrepreneurs and disregards their primary needs. Instead, he salutes the nobility of entrepreneurship. He gives clear-cut guidance on how to fortify their financial footing with cash flow and control of capital.
Table of contentsWhere Infinite Banking Fits into Your Cash Flow SystemRobert Murphy Has Credentials That Have Earned Him Wide RespectRobert Murphy Interview HighlightsThe Human Element That Makes Economics UnpredictableAustrian Economics Celebrates the EntrepreneurThe Austrian Business Cycle Theory Informs the EntrepreneurProtect Your Ability to Innovate by Controlling Your CapitalHow Robert Murphy Connects Austrian Economics with Infinite BankingRobert Murphy and Carlos Lara Host the Night of ClarityThe Entrepreneurial MindsetInfinite Banking Is the Perfect Savings System for EntrepreneursBob Murphy Went From Whole Life Insurance Skeptic to EvangelistRobert Murphy on What Makes the Infinite Banking System Good for Business Owners Infinite Banking Is Your Tool to Emulate the Most Powerful Business Model in the World: The BankRobert Murphy Says You Can Seced from the Banking SystemAn Infinite Banking Policy Is Like a Swiss Army KnifeA Good Rate of Return, Compared to What?Infinite Banking Is Most Powerful as an “AND Asset”Our Personal Story Illustrates Why Whole Life Is an Ideal “AND Asset”It’s No Secret That Banks and the Wealthy Store Reserves in Cash Value Life InsuranceThe Mindset Shift Required to Take Control of Your CapitalConnect with Robert MurphyCreate Your Time and Money Freedom
Where Infinite Banking Fits into Your Cash Flow System
Infinite Banking (Privatized Banking) is just one step in the greater Cash Flow System.
Infinite banking is sandwiched between Stage 1, where you’re being more efficient and keeping more money you already make, and Stage 3, where you’re increasing cash flow from your investments.
While it’s nestled into Stage 2, Protection, it also improves everything else around it. Infinite Banking helps you keep more of the money you make in Stage 1, amplify your cash-flowing asset strategy in Stage 3, and accelerate your Time and Money Freedom.
Robert Murphy Has Credentials That Have Earned Him Wide Respect
Robert P. Murphy is an austrian economist and Research Assistant Professor with the Free Market Institute at Texas Tech University. Along with Tom Woods, he is co-host of the popular podcast “Contra Krugman.”
Robert has a Ph.D. in economics from New York University. He is also Senior Economist with the Institute for Energy Research, Senior Fellow with the Fraser Institute, Senior Fellow at the Mises Institute, and Research Fellow with the Independent Institute.
He’s a prolific author and speaker on Austrian economics.
Robert Murphy has testified before Congress on energy markets and monetary policy and has given numerous interviews on TV and radio. He is the author of hundreds of articles and several books on economic topics created for the layperson.
He publishes (with Carlos Lara) the Lara-Murphy Report, and is co-creator of the IBC Practitioner Program.
He’s a member of the board at the Nelson Nash Institute.
His works have been published in:
The AustrianMises Daily ArticleThe Journal of Libertarian StudiesQuarterly Journal of Austrian EconomicsMises ReviewThe Free MarketReview of Austrian EconomicsSpeeches and Presentations
Robert Murphy Interview Highlights
The Human Element That Makes Economics Unpredictable
Your financial life should have come with the instructions: "For best results, abundance thinking required!" Your financial results are a direct product of your way of thinking about money. While it's tempting to jump right into strategies and products and investments, you'll never outperform your mindset. You are your greatest investment, therefore exponential results are created by an abundance mindset.
In the famous Indian fable of the Blind Men and the Elephant, six blind men described an elephant from their perspective. One said it was like a rope, and another said the elephant was like a tree. A third said it was like a spear. The fourth, a snake. The fifth, a fan. And finally, the sixth man said it was like a wall.
Each man had touched a different part of the elephant, and his experience shaped his understanding.
Their limited thinking is evident to us. But all too often, we, just like each blind man, are unaware of our own finite mindset.
Our mindset is intangible and tucked away out of sight, so it’s easy to think it doesn’t require your attention.
You can be unaware of it, ignore it, pretend it’s something different, or choose it.
Regardless of your level of consciousness around your mindset and beliefs, your mental programming is driving your life.
Table of contentsWhere an Abundance Mindset Fits into the Cash Flow SystemHow We LearnWe Don’t Know EverythingWhat We Do Know is ThisScarcity: Limiting Beliefs and Where They Come FromConsider an Abundance View of MoneyAbundance Principles That Lead to Creating More MoneyAbundance Principle 1: Dollars Follow ValueAbundance Principle 2: People Have Intrinsic Value; Money Does NotAbundance Principle 3: Principles First, Strategies SecondA Strategy Is Not a PrincipleAbundance Principle 4: Reaching Your Full Potential Requires Full ResponsibilityThe 7 Principles of ProsperityLive the Principles of Abundance to Create WealthThe Podcast Has More on AbundanceEpisode ResourcesCreate Your Time and Money FreedomIn Closing
Where an Abundance Mindset Fits into the Cash Flow System
At The Money Advantage, we are a community of wealth creators. We are entrepreneurially-minded business owners who are taking control of our lives and financial destiny. We have a compass that always points back to the principles of wealth, not just to strategies or products. You need the right mindset, philosophy, and principles of abundance, expansive thinking, creation, cash flow, and control in place first before any financial tactics can genuinely benefit and serve you.
In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money. Finally, you increase and make more.
This conversation on the mindset, philosophy, and principles of wealth creation fits right into the very first step of the first phase.
How We Learn
If you want different results than you see today, it’s not enough to change your actions. You need to expand your mindset.
In the elephant story, each man was beholden to his perspective. They each believed that their own experience was the full interpretation, and it led them to severe errors of judgment. Not one was willing to learn from each other to broaden his understanding.
When it comes to our understanding of the world, we’re each like the blind men.
Of all of the available facts in the world, each of us knows some of them. None of us know them all. The limited set of facts we have and our interpretation of them form our unique map. Of the 7 billion people in the world, all of them have a map, and none of them look like yours.
This is your belief system. Unless you're willing to expand your map, nothing new exists for you.
When we come into a conversation with people who see differently, it's important to recognize that if we both had the same map, we'd think the same way.
When we each defend our own interpretation of the facts,
With naivety that makes me laugh now, after having my first child, I thought I'd have so much free time, why not start a business?As much courage as it takes to tell one’s story, it’s also tremendously freeing and empowering.
I heard it said that the most important gift we can give is our story. Every story we hear is a gift because we find ourselves in each other’s stories. We receive the gift of permission to live out our own story bravely, own it, and share it.
I’ll share how I, Rachel Marshall, became a cash flow coach, how it’s a part of my family, why I keep going, and why I want to keep growing for my entire life. More importantly, I’ll tell you about the mindset breakthroughs along the way.
I’ll tell you about the ugly mistakes I made during the process. I hope to encourage you not to give up. I hope to show you that there are lessons on the other side that are worth every gut-wrenching tear.
And I’ll show you how consistently taking action, no matter how imperfect, has been the secret to growth, confidence, and progress.
I hope to give you the permission to think differently and grow along with like-minded entrepreneurs.
In case you missed it, in the prior episodes, we covered How The Money Advantage Began, and my co-host Bruce's backstory in The Mindset Shift.
Table of contentsMy Core Strengths Illuminated By an Eclectic HistoryThe Intrigue of EntrepreneurshipThe Silly Idea That Got Us StartedPersonal Financial Failures and the Lessons We Learned as a ResultHow a Personal Financial Mindset Shift Changed Our BusinessThe Transformation from Just Sticking with ItHow I Serve Business Owners TodayThe Elevated Mindset in BusinessWhy I’m Still GrowingMaking Sense of It AllThe Podcast Has MoreEpisode Resources
My Core Strengths Illuminated By an Eclectic History
I grew up the oldest of 4 on a farm in Minnesota.
Everything I did was with my whole heart, with a grand, epic meaning.
I was involved in 4-H throughout grade school. At 12 years old, on one of my project folders I defined 4-H:
… a window into greater levels of knowledge, determination, personal development, perseverance and effort which involves making friends, learning new skills, and having fun.
I rode horses and competed at the state level in barrel racing. This taught me alot about dedication, hard work, and being coachable.
At 17, I moved 1,300 miles away from home to join a ministry training program. We traveled across the nation, leading youth conferences.
I joined the administrative staff of my church and led a team of 90 volunteers, and learned that I loved inspiring people to work together. Through writing training curriculum, I developed the ability to teach.
After I married Lucas in 2006, I finished out a bachelor’s degree in psychology and business. I was drawn to marriage and family therapy. In college, I discovered my aptitude for accounting and was offered a paid scholarship to make it my major. I turned it down, thinking I wouldn’t be interested in “crunching numbers.”
Out of college, I landed a career in business and human resource management. Training and development was my strength, and I thrived in building relationships that drew out the potential of others and inspiring teamwork. I learned that leadership and influence didn’t have to come from a company title or a supervisory position.
The Intrigue of Entrepreneurship
I can point back to an eighth-grade introduction to Robert Kiyosaki’s Rich Dad Poor Dad, and the Cashflow Game, as the first seed of entrepreneurship in my life.
I wanted to understand investing and business ownership that made money and created financial freedom.
The desire lay dormant for several years and resurfaced when Lucas and I were dating.
We’d have long conversations about what we wanted to do in the future. We weighed and researched many options, from starting a computer services company, to a coffeehouse,
At 25 years old, Bruce Wehner had chest pains and thought he was having a heart attack. The crisis caused him to face his own mortality. He re-evaluated the nobility of hard work, pushing himself, and hustling.Bruce’s backstory highlights two strategic mindset shifts that have developed him into the person he is today. Because of his experience, he has become a giver with the keen ability to add value to his clients’ lives.The first shift was a decision not to be dependent on another person or entity for his livelihood.The second shift was the move from transactional selling to truly delivering value.Bruce’s early life experiences in business and entrepreneurship led him to embrace business ownership as a way of life. Because he understands the business culture and unique challenges owners face, he serves them with tremendous value.
His perspective and insights are what have allowed him to personally take thousands of clients through a financial discovery process. His objective is to put the client in control of their own financial destiny.
We hope that you will find yourself in his story and that his transparent honesty will validate your own experiences.
In case you missed it, in the prior episode, we discussed How The Money Advantage Began.
Table of contentsThe Prevailing Culture of DependenceThe Early Influence of His Father’s BusinessThe Need for Innovation During Creative DestructionThe Undercurrent of a Scarcity MindsetFinancial Academy at the Chevrolet DealershipFrom Business Ownership to Employee, and Back AgainAn Introduction to Cash Value Life InsuranceMindset Shift 1: Taking ControlFinding His Life Work as a Financial EducatorMindset shift 2: The Role of Adding ValueThe Podcast Has MoreEpisode ResourcesUp Next …
The Prevailing Culture of Dependence
Bruce grew up during the ‘60s and ‘70s. During the years of the Vietnam War conflict in the '60s, the US economy was struggling. This was an influential time for Bruce as he watched the birth of entitlement programs.
Additionally, in the pre-World War II timeframe, as the industrial revolution began, the economy shifted from being dominated by small businesses, to one driven by corporations and employees.
Together, these changes caused people to develop a mindset of dependence on the government and corporations.
The Early Influence of His Father’s Business
Despite the backdrop of dependence that surrounded him, Bruce learned about business ownership at a very young age.
He was the child of German immigrants. His father, like many others in the immigrant community, owned a business.
From working in his father’s Shell Service Station, Bruce learned about the value of hard work and the necessity of innovation.
He watched his Dad build a self-sustaining business. His dad developed a team and had the flexibility to leave the business and have it continue to operate.
As a child, he remembers working long hours in the gas station, often from 6 a.m. to 9 p.m.
The Need for Innovation During Creative Destruction
The Oil Embargo of 1975-1976 and Missouri’s Blue Laws restricted his father’s ability to operate his business.
This brought about creative destruction, shifting the industry from true service to self-service and convenience. Service stations used to include pumping gas for people, tire rotation, windshield washing, checking the radiator and fan belts. To stay competitive, merchants had to mark down the gas. They provided gas as a loss leader and added convenience items to bring in profit.
Bruce’s father couldn't expand into the convenience model because his station was landlocked. He was unable to ride the wave of change and stay profitable in the new environment and lost his business as a result.
The Undercurrent of a Scarcity Mindset
As Bruce looks back, he notices the fear that shrouded his father’s entrepreneurial activities. Business was a grind,
The Money Advantage was born out of unexpected collaboration in the most unlikely of circumstances. Three financial service professionals in an industry known for its undercurrent of competition, from across state lines, different companies, different levels of experience, and different generations.With the common ground of a desire to bring empowering education to business owners to help them keep and control more of their money, a Go-Giver spirit, a willingness to say yes to the unknown and live it as an adventure, and a little dream to start a podcast and the surprising ignition switch that made it happen.I’ll tell you the story of how we met, why we’ve continued to build a collaborative relationship, why we’ve teamed up to deliver The Money Advantage to you, and what you can expect as a result.
Table of contentsThe Reason We MetIt Was the Start of a Collaborative Working RelationshipHow The Money Advantage Was BornThe State of the Financial Services IndustryThe Needs of the Independent ThinkerThe Change We Wish to See in the WorldThe Podcast Has MoreAdditional ResourcesUp Next …
The Reason We Met
Bruce Wehner’s organization, e3 Wealth, based in St. Louis, Missouri, had become disenfranchised with financial services industry.
They saw how difficult it was for a person to get consistent financial advice from their CPA, investment advisor, insurance broker, and mortgage professional, who often worked independently, not collaboratively.
They engaged in a mission to transform the financial industry, building a teamwork model across professionals. The objective was to foster relationships with like-minded financial professionals, to share best practices and best empower clients.
They partnered with the Nelson Nash Institute to create the Freedom Advisor Live event as a step towards building this vision.
My husband, Lucas and I, wealth strategists in Virginia, heard about the event through the Nelson Nash Institute. When we listened to their teleconferences, we discovered a team doing the same work, that had much more experience.
We booked plane tickets and attended the first Freedom Advisor event in November 2015 with the desire to find mentors.
It Was the Start of a Collaborative Working Relationship
We took immediate action on the lessons we learned, changing most of our client process. One of the changes was implementing a financial picture process with our clients. As I worked with clients, I discussed our recommendations with Bruce to gain further insight. As a result, we had frequent conversations over the two years that followed.
How The Money Advantage Was Born
One of the many areas of common ground was that Bruce and I are educators by nature. We both believe in the power of education to give people the confidence to make decisions.
Bruce had the experience of sitting down with over 4,000 clients. One of his unique abilities is strategic thinking. Through his volume of real-life experience, he has developed the skill to lead clients in thinking exercises that support clear decision-making.
My unique ability is communicating complex ideas in a way that’s fun, simple and doable. I’m able to put ideas down on paper and into a process and communicate them in a way that helps people come to their own conclusions. I'd been creating video and blog content for over a year, and wanted to produce higher quality educational content with more depth and context.
I had been creating video and blog content for over a year, and I saw podcasting as the next step to produce higher quality educational content with more depth and context.
Even though it was my desire to start a podcast, it was my husband Lucas that made it happen. On a hunch, he called up Bruce and asked if he would co-host a show with me.
Bruce said yes!
Imagine my surprise when I stood face to face with my dream. It was for now, not someday…
Lucas and I believed that partnership with Bruce was just wh...