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The Money Advantage Podcast

Personal Finance for the Entrepreneurially-Minded!


Becoming Your Own Banker, Part 28: Infinite Banking Definitions
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. As 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 Call The 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 Definitions As 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 Banking If 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,
62:18 4/22/24
Nelson Nash’s Legacy: Think Tank 2024 Recap
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. Tune 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 Call Your Need for Finance At 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 Principles Think 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-Range Many 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 ...
64:53 4/15/24
Becoming Your Own Banker, Part 27: 7 Money Myths that are Costing You, Continued
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? If 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 Call Money Myths that are Costing You Money, Continued 4. Tax-Qualified Plans are Best The 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 Thing Another 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.
52:53 4/8/24
The Power of Trusts for Generational Wealth with Joel Nagel
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. I 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 Call The Power of Trusts for Generational Wealth with Joel Nagel First 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 Strategy What 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 Wealth To 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 Stability In 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 Generation One of the most critical aspects of generational wealth, according to Joel,
52:25 4/1/24
Becoming Your Own Banker, Part 26: Top 7 Money Myths, Lies That Are Costing You Money
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? Embark 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 Call Rethink Your Thinking If 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 Myths The 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 Incomes This 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 ...
61:49 3/25/24
Estate Planning 101: Protecting Your Loved Ones
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. As 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 Call Estate Planning 101 Estate 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 Planning As 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. 
18:15 3/18/24
Becoming Your Own Banker, Part 25: Uninsurability Hacks
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. That 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 Call How 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,
73:59 3/11/24
How to Protect Your Lifestyle with Insurance – Meaghan Dowd Insurance 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 Wealth How to Protect Your Lifestyle with Insurance If 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 Requirement Insurance 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 Policy Meaghan 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 Necessity One 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 Brokers Choosing 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 Security Don't miss the opportunity to empower your financial future with smart insurance choices. The insights Meaghan Dowd shared in our conversati...
49:51 3/4/24
Becoming Your Own Banker, Part 24: Real College Advice
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? Unlock 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 Call Is 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 Education In 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,
64:04 2/26/24
Discover Wealth Across Borders -Michael Cobb It 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 Call Discover Wealth Across Borders - International Diversification The 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 Impact During 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 Markets Investing 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 Expats One 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 Investments Latin 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 Joy As 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 Book A Strategy Call Do you want to coordinate your finances so that...
52:21 2/19/24
Becoming Your Own Banker, Part 23: Practical Wisdom for Perpetual Wealth
Do you want perpetual wealth that continues growing in future generations? Today, 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 Call Forestry Management and Infinite Banking In 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 Wealth Whole 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 Wealth Just 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,
60:59 2/12/24
Becoming Your Own Banker, Part 22: Get a Higher Rate of Return
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. But 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....
71:11 2/4/24
Surviving the Storm: Navigating War in Israel with Rabbi Lapin
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? Back 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 Call Gaining Perspective and Questioning Misinformation It’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 Not While 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 ...
59:20 1/29/24
Becoming Your Own Banker, Part 21: Cost of Acquisition
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. Infinite 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 Call Cost of Capital vs. Cost of Acquisition We 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 Time Financing 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,
53:37 1/22/24
Marshall Family Banking System, Pt. 4
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. Today, 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 Call Prior Episodes In This Series Part 1 Mar 2022: Why We Started a New Life Insurance Policy Part 2 Oct 2022: Adding a Second Whole Life Policy Part 3 Feb 2023: Capitalization Phase - End Of Year Update Structure of the Family Banking System In 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 Statement On 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...
46:23 1/15/24
Family Summit End-of-Year Strategies: Planning for Multigenerational Success There'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 Summit Our 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 Growth Reviewing 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 Relationships One 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 Year Looking 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.
32:50 1/8/24
Becoming Your Own Banker, Part 20: How to Live on Purpose
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. Prepare 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 Call Relinquishing 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,
50:22 1/1/24
Becoming Your Own Banker, Part 19: The Retirement Trap
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. We'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 Call Rethinking 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. ...
57:46 12/26/23
Becoming Your Own Banker, Part 18: 3 Things You Need to Get Started with Infinite Banking
Change isn't easy. It's almost always more comfortable to stay the same than it is to do something new. What 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 Call Embrace Change Change 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 Banking 1. Desire To 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. Patience Once 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,
57:07 12/18/23
Becoming Your Own Banker, Part 17: IBC Capitalization with Equipment Financing
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. Rather 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 Call What 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 Capitalization So 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,
63:07 12/11/23
Seven Generations Legacy Book Launch
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. In 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, and we’ll send you your AUDIOBOOK + E-BOOK you can read right away, PLUS the Financial Literacy Lessons ABSOLUTELY FREE! (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,
67:13 12/7/23
Successful Parenting for Prosperous Families, with Dr. Lee Hausner
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. In 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 Call Exploring the Key Challenges of Successful Parenting The 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 Households To 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 Capital In 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 Impact The 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.
61:15 12/4/23
Becoming Your Own Banker, Part 16: Controlling the Banking Function
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. We’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 Call Controlling the Banking Function When 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...
66:30 11/27/23
Becoming Your Own Banker, Part 15: How to Pay More Infinite Banking Premiums
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. One 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 Call Your Income Should Match Your Premium This 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 Premium The 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...
65:21 11/20/23
Embracing the Infinite Banking Concept, with Becca Wilhite
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. In 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 Call Introducing Becca Wilhite Becca 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 Approach Dave 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...
68:29 11/13/23
Becoming Your Own Banker, Part 14: Financing with Infinite Banking
Want to see firsthand how financing with Infinite Banking will help you come out ahead? Get 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 Call Rethink 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 Strategy In 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,
65:15 11/6/23
3 Reasons to Leave an Inheritance
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. Looking 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 Call How Infinite Banking Leads to Legacy Legacy: 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 Inheritance 1. The Bible Directs Us to Leave an Inheritance In 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.
27:57 10/30/23
Becoming Your Own Banker, Part 13: Overfunding Life Insurance
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. We 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 Call Overfunding Life Insurance When 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 Design When 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,
72:35 10/23/23
New Agent Licensing and IMOs
Are you a new agent or looking to join the insurance industry, and wondering exactly just how and where to get started? In 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 Call What 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 Steps After 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,
30:58 10/16/23
Becoming Your Own Banker, Part 12: Cost of Life Insurance
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. Our 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 Call Creating Your Banking Entity At 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 Underwriting First 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 Insurance Many 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,
63:31 10/9/23