The Money Advantage® Podcast | Infinite Banking Concept & Family Banking

Can you confidently say your family's financial future is protected? Staring down the barrel of a life-altering moment, I was forced to confront the fragility of existence and the critical importance of having one's affairs in order. That harrowing experience became a catalyst for today's soul-searching episode of the Money Advantage podcast, where we navigate the often-neglected waters of estate planning. This isn't your typical run-of-the-mill chat; it's a deep dive into preparing for the unforeseeable, ensuring that your family and cherished assets are shielded when you're no longer here. Estate planning transcends mere financial arrangements—it's about crafting a legacy that encapsulates your values and survives through the ages.

https://www.youtube.com/watch?v=aQGy19s4OU8

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. 

The Number One Question to Start

In order to start your journey, the best way to start is to ask yourself this one question:

“Do I have a spouse, children, future children, or a family that I care about deeply, and that would be impacted financially if something happened to me tomorrow?”

When you ask yourself this question, you want to rate how true it is for you on a scale of 1-5, with 1 meaning it’s not true at all and 5 being completely true. You can rate yourself for each of these categories, too (spouse, children, etc.). This one question will help you to determine how ready you are to start the estate planning process. 

While you’re thinking about this, give yourself time to put some significant thought into how your loved ones would or would not be impacted. Would your spouse have to get a new or second job if you died? Could your family remain in the home? Do you have aging parents that you expect to be responsible for? How will your children’s needs change over time?

Doing this self-diagnostic puts estate planning into the appropriate frame, and helps you not only to decide whether you’re ready but also helps you go to your attorney and explain what matters to you and why.

A Personal Story

You can tell someone to think about estate planning until you’re blue in the face, but at the end of the day, it only happens when you’re internally motivated to do so. You must have a reason to do so that outweighs the discomfort and stress of undertaking a project like this. 

For my family, the ah-ha moment came when I had a near-death experience in childbirth. It was the delivery of my second child that led to complications which involved surgery and a complete blood transfusion. The prognosis was not good, but thankfully, by God’s grace, I’m here to tell the story today. 

This isn’t a story I share lightly–it was the catalyst for our family to really evaluate the systems we had in place, because I knew then, beyond just a superficial knowing, that my life is not guaranteed, regardless of my plans for a full life.

So how do you balance this knowledge with the desire for a full, rich life for yourself and the ones that you love? It’s all about one thing: protection. How do you protect what you have now so that it isn’t a weight on your shoulders? So that you can live your life fully, without regrets or fears?

One of the great gifts of estate planning, from this perspective, is that you are not only able to gift resources and assets to your children and loved ones. You’re also able to gift knowledge and values that will help them be good stewards of the inheritance you leave for them. In that way, estate planning isn’t just about death, it’s about life for generations to come. 

So remember, PROTECT. Protect financially, legally, and relationally to live life to the fullest today.

How Prepared Are You to Protect Loved Ones?

Take our free assessment to get insight on the current health of your estate and legacy planning: https://sevengenerationslegacy.com/quiz

Determine How Prepared You Are To:

Pass on a legacy of traditions, values, and purpose

Ensure your children are prepared to steward their inheritance 

Protect your estate from creditors, lawsuits, and taxes

Preserve and grow multigenerational wealth

Book A Strategy Call

Are you ready to take control of your finances and legacy? We offer two powerful ways to help you create lasting impact:

Financial Strategy Call – Discover how Privatized Banking, alternative investments, tax-mitigation, and cash flow strategies can accelerate your time and money freedom while improving your life today. Let us show you how to align your financial resources for maximum growth and efficiency. Book a Strategy Call with our team today.

Legacy Strategy Call – If you want to uncover your family values, mission, and vision, and create a legacy that’s about more than just money, we can guide you through the process of financial stewardship and family leadership. Save time coordinating your family’s finances while building a legacy that lasts for generations. Book a Legacy Strategy Call to learn more about how we can help.

We specialize in working with wealth creators and their families to unlock their potential and build a meaningful, multigenerational legacy.

Do you want to use Infinite Banking, but you're uninsurable? Today we are discussing uninsurability hacks!

Don't worry, uninsurability ISN'T a game-stopper for using Infinite Banking to build your own banking system.  

https://www.youtube.com/watch?v=iklRiFBTZRo

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, they can collect the necessary premium to fund the death benefits of those who may pass away well before their time, as well as those who live to a ripe old age. So, if you do have a policy, you can be confident in your company’s financials.

Should You Apply with a Health Condition?

If you have a pre-existing health condition, you may be tempted to quit before you’ve even tried. However, we’d like to emphasize that you shouldn’t be deterred from applying, regardless of how you view your own health and habits. While there are certainly some disqualifying illnesses off the bat, like a terminal diagnosis, insurance companies want to work with you if possible.

Sometimes, a health condition merely requires a few more steps—like certain tests or treatment—or it just costs a bit more. And in reality, it’s much more beneficial to you and your family’s wealth to pay a bit more for a life insurance policy than to not have one at all. 

We knew someone with a heart condition who had concerns about applying for a policy, but when he did, the insurance company merely requested a few additional tests. He was ultimately able to qualify for life insurance, despite believing there was no possible way he could be insured. 

[9:06] “Don’t pre-qualify your own health, because what you believe is bad may not be bad to the life insurance company.”

Life Insurance Ratings

So what happens if you DO qualify for insurance, but you have a health condition or a habit that makes your policy more expensive? What does that mean? This is where “ratings” come in. This is how insurance companies designate policies based on actuarial data. 

This can be a good thing, because you’re not getting an individual price based on your health specifically, you’re getting rated into a group and receiving pricing accordingly. Just like insurance in general, this is how policies stay as affordable as possible for as many people as possible. 

A Standard rating is the average rating of people who are getting insurance, and is the cost basis of all policies. Pricing goes up or down from this basis based on this rating. For example, you can be rated Preferred or Super Preferred, both better ratings than Standard, which would make your cost below the basis. 

Preferred and Super Preferred ratings are rare because you have to have impeccable health, not have super risky habits, and no underlying issues or markers. 

Then, you have Sub-Standard ratings, of which there are several tiers, which simply mean that your health is below the average of people being approved for life insurance. This is nothing to be ashamed of, and can even be cause to celebrate—you qualify for insurance! Ultimately, these ratings are more for the company than they are for you, so try not to read too much into them.

What Does it Mean to Increase the Cost of Insurance?

When we say the cost of insurance is increasing or decreasing, we mean that the cost relative to your death benefit is increasing or decreasing. In other words, you’re going to “feel” this cost on the death benefit side, rather than the premium side. 

Say, for example, that you want to qualify for $500,000 of death benefit, but you get a Substandard rating. You might see the premium stay the same, but the death benefit you qualify for is reduced. This is effectively raising your price, but you’re seeing the change in the death benefit rather than your personal “cost.”

Uninsurability Hacks and Insurable Interest

If you find that you’re unable to qualify for whole life insurance, that doesn’t mean you cannot own a policy. Instead of insuring yourself, you’ll just want to insure someone else—a child, grandchild, parent, etc. 

In order to insure someone, you must have an insurable interest, which proves to the insurance company that you have a reason to insure someone. Otherwise, we could take out policies on just anyone. Essentially, insurable interest means that if this person were to pass away, it would create a financial burden for you. If you expect your child to be a caregiver for you or expect to be the guardian for your grandchildren, those can be valid reasons for insurable interest.

As the owner of the life insurance policy, you’re responsible for the premium payments, but you’re also the one who has access to the cash value. This means that you can still practice infinite banking, even if the policy is not on your own life. An additional benefit to this is that you can later gift this policy to your child or grandchild, or use it to help them finance purchases while teaching them the value of leverage. 

If you’re struggling to prove an insurable interest, you may still benefit from another family member’s policy, depending on your family dynamics. For example, in a close-knit family, you may not need to personally own a policy if you have agreements in place to create financing opportunities from the family bank. This is one of the many benefits of implementing IBC with a generational perspective. 

Generation 1 can benefit from what Generation 2 owns, while Generation 3 benefits from both generations, and their policies can benefit their elders in return. 

Book A Strategy Call

Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!  Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide

https://www.youtube.com/watch?v=2zMyR7l2elg

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 conversation could transform confusion into clarity and help you approach insurance with newfound confidence.

Conclusion: Secure Your Wealth

Remember, protecting your wealth isn't just about accumulating more – it's about shielding what you already have from life's surprises. Insurance isn't just about what happens on your property – it's about protecting your lifestyle choices that have financial implications.

By comprehending the complexities of insurance policies and coverage options, you can unlock the power of insurance to secure your financial future. The insights shared in this article, along with the wisdom from our podcast episode, will surely guide you on your journey to financial security.

So, are you ready to take control of your financial situation and protect your wealth? If you still have questions or need further guidance, don't hesitate to book a call with me. Together, we can master financial security, one step at a time.

After all, knowledge is power, and understanding your insurance policies could be the key to unlocking a secure financial future. Be proactive, make informed decisions, and empower your financial future with smart insurance choices. Remember, you're not just insuring your assets, you're protecting your lifestyle.

Should you go to college? Should you send your kids to college? Will they earn more with a college degree? Will the degree provide a better financial future? What is the rate of return on a college degree?

https://www.youtube.com/watch?v=sPZM49y8his

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, Bruce’s nephew applied to the same university in 2015, and the cost was $17,795. And while that was a good deal compared to other schools, the inflation is undeniable. And if he wanted to be a teacher, his income would have to be $179,000 to achieve the same ratio. That salary is simply not realistic for a teacher. 

At the time of writing this, the average college tuition is $36,436 per student, per year. This cost is inclusive of books, supplies, and daily living costs. However, the total cost of college will change depending on other factors, like how many years you attend, whether you go to a private or public institution, scholarships and grants, and even whether you go in-state or out-of-state. However, this average gives you a good baseline to start figuring it out. 

The Power of Understanding Business

Regardless of the path you choose, it’s important to have a good understanding of the business of banking. We want to shift focus from the value of a degree to the value of learning, and learning can be done at any age, regardless of your educational experience. 

[43:39] “[Robert Kiyosaki] didn’t say you shouldn’t be college educated, he just said let’s figure out how to make money, and the path to making money isn’t just through college.”

If you look at a list of highly successful people, you’ll notice that many of them are household names, and many of them never went to college. This isn’t to say you shouldn’t go to college, it merely illustrates the point is that college is not required for success. This is only becoming more true over time, as opposed to less true, thanks to advancements that allow people to learn on their own and start businesses with ease. 

Real College Advice: Whole Life Insurance or Tuition?

Knowing the costs of education, what would happen if you made the same or similar contribution to a whole life insurance policy? Doing so would allow you to amass a replenishing pool of capital from a young age that could be used to acquire new assets, while also offering protection, and teaching good stewardship lessons along the way. At the end of four years, you could come away with a policy that’s ready to be used, as opposed to a mountain of debt. 

This, however, hinges on your full financial picture, too. How much can you actually contribute to a whole life insurance policy when you’re fresh out of college? What job opportunities can you seek that offer good learning experiences, networking, and future potential? If you’re not paying $80,000 for college out of pocket, chances are you’re not funding a whole life policy with $80,000 either. So it’s important to consider your real opportunities and options. However, if your path in life is more entrepreneurial, consider the value of building yourself a pool of capital that you can use to build your business. 

Nelson shares this idea in his book and shows the overall value of starting a banking function. However, it’s important to note that those illustrations are from 20 years ago, and are not going to look the same today. That’s not to say things are worse—in many cases, they’re better—you just cannot expect the numbers to play out exactly. However, the same is true of present-day illustrations—they’re a snapshot in time, based on current assumptions. Those change every year. Instead, you have to approach illustrations as a curve of what to expect. If you assess Nelson’s book for its concept, rather than the accuracy of the projections, you’ll see that it’s accurate. 

[1:01:32] “If you understand the concepts, the details don’t matter. And if you don’t understand the concepts, the details don’t matter. So the details don’t ever matter. What you really need to do is focus on the concepts, because the concepts are the basic guidelines for you. The details are going to change how you apply this, but the concepts are the most important.”

Further Resources:

The Fall of the Ivory Tower: Government Funding, Corruption, and the Bankrupting of American Higher Education

US Debt Clock

Higher Education Subsidies

Book A Strategy Call

Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!  Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.

https://www.youtube.com/watch?v=o6GUHRsyCEE

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 https://ecidevelopment.com/

Book A Strategy Call

Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!  Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.

Do you want perpetual wealth that continues growing in future generations?

https://www.youtube.com/watch?v=aqCY1qB8Lys

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, poor yields, and more. If you don’t take measures to properly fund your policy and repay loans, you run the risk of having your policy lapse, or your cash value shrinking to cover your loans. 

The way that you operate your banking system also includes actions such as how you invest and use your capital, and how you teach your family to be good stewards of their money, too. These efforts help to ensure that you’re in a position to control capital now and that your children and their children can also be in a position to control capital. 

“A good person leaves an inheritance for their children's children…”

Proverbs 13:22

[55:48] “I love that principle and that idea of recognizing that we have a calling, a responsibility, an exciting adventure to… live our life in a way that we are able to leave an inheritance. And that has been such a compelling call to myself and to my husband that we have written a book that is all about that.”

[56:56] “We need to be paying attention to our financial decisions. Everything that you place attention on has the ability to expand and grow. If you ignore it, it does not thrive and flourish. Your health doesn’t, your nutrition doesn’t, your relationships don’t, your marriage doesn’t. If you have anywhere in your life you’re putting your attention, you will be able to grow and expand in that area of life.”

Book A Strategy Call

Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!  Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide

Are you looking for a higher rate of return? If so, your quest may point you to an important secret as you make financial decisions. Most people want to get the highest rate of return on their investment dollars .... which is why whole life insurance can be such a turn-off.  It seems like a wimpy competitor in the rate of return game.

https://www.youtube.com/live/Hu1qEPn9Wc8

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. A higher or lower interest rate is not automatically good or bad. And often, that line of thinking leads you to make choices that don’t keep the bigger picture in mind. 

Everyone is Seeking a Higher Rate of Return

[12:18] “Looking at your personal economy or your business economy in one silo doesn’t maximize what you’re trying to accomplish.”

If you want to do the most with your money, it seems only logical that you would seek the highest rate of return possible in all things. However, this can be counterintuitive to your overall goals. One reason this could happen is because high rates of return often come from riskier assets—and you don’t want to invite too much risk into your portfolio. If you do, you want to balance it with assets that have more guarantees and more certainty, like life insurance. That way, you don’t lose everything in a bad market. 

In this way, seeking high rates of return on all assets is not the most helpful solution to maximize your money. Sometimes, you want to seek those moderate RORs to create balance. 

Another way whole life insurance can be impactful, even with its moderate ROR, is because it provides you with capital that you can use to invest. It’s unlike your other assets that way. So it behooves you to create and grow this pool of liquid cash in the long-term, even if it’s not totally competitive with something like the stock market (though we think the steady growth of it is competitive). 

How Are You Financing?

The key is to understand how you’re financing everything. We’re not suggesting that you need to go line by line through your spending. What we’re really suggesting is that you have an awareness of how your various cash flows are working together (or not). Are you paying a bit more interest on your car for that better monthly payment, and then applying the difference to your insurance premium? Are you raising your deductibles to lower your car insurance, and applying the excess to your premium? What bucket are you using to finance your investments, and what bucket are you using to repay your policy loans? 

It’s not so much about WHAT you’re spending or doing, but HOW and WHY you’re doing it. By having a good idea of how your money is flowing, you can fine-tune things to be even more efficient. That way you’re getting the most accumulation—and sometimes that means you’re not so laser-focused on your rate of return. 

Life Insurance Allows You to Do More

One of the most compelling aspects of whole life insurance is that you don’t have to sacrifice your other options to have it. It’s not like having a savings account where you can either use the money for this investment or that investment. Instead, you can put your money into life insurance for the Death Benefit and other guarantees, AND you can use it to invest in something. And then you can use it again and again and again. 

While you won’t be “averaging 12%” with life insurance the way many claim you can in the stock market, the rate of return is steady and reliable. This allows you to be confident in your pool of capital. And while you may be paying interest to the insurance company to access that cash, this is worth the opportunity to replenish your pool of capital. 

If you’re fully paying your premium and PUAs, you’re maximizing your cash value and getting the most capital you possibly can. While you can’t change your rate of return on the policy, you can increase the pool of money that’s earning the rate of return, and that is significant to your accumulation journey. The more you accumulate, the more opportunities you have. These opportunities include investments that WILL improve your overall cash flow over your lifetime, and you can only build that on a solid foundation. Life insurance is that foundation.

Book A Strategy Call

Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!  Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.

When war across the world could mean war close to home or a whole world war … when conflicts thousands of years old can’t be solved overnight … when truth seems defined by who’s in power … when totalitarianism seems stronger than freedom and free markets … when open borders looked like compassion but instead weaken us from the inside … when economic prosperity and security look like myths … how do you thrive anyway?

https://www.youtube.com/watch?v=KD__jKjby4o

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 and give your daughters in marriage, so that they too may have sons and daughters. Increase in number there; do not decrease. 7 Also, seek the peace and prosperity of the city to which I have carried you into exile. Pray to the Lord for it, because if it prospers, you too will prosper.”

Jeremiah 29: 4-7 

Amid all this chaos and turbulence that Jeremiah was experiencing in Biblical times, he assured people to keep living and prospering. This is a profound call to entrepreneurs and other producers to thrive in the face of crisis. Trust in God to bring abundance by partaking in the activities of an abundant life. 

[46:37] “A declining population and an aging population is a huge problem.” 

[50:03] “My point is that using these principles of ancient Jewish wisdom, my folks have been making good money in bad times as in good times. And they’ve been doing that in tyrannical regimes like the Soviet Union, just as they have been doing it in wonderful and hospitable countries, like the United States.”

[53:49] “In order to flourish financially, your head’s got to be straight. And to have your head straight, you need friendship and you need family; and to have family you need to have money, and to have money… you know. All these things interact with each other.”

Book A Strategy Call

Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!  Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.

Financing costs are much more than just interest rates. First, there is the time required to obtain the financing, and then, often numerous steps to qualify and negotiate. This financing is very expensive when you account for the number of executives whose time is required for the endeavor.

https://www.youtube.com/watch?v=-MmWlkTQsWE

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, and you feel that this will save you significantly on your monthly payments in the long run. The beauty of Infinite Banking is that you have options. You can choose to finance the purchase yourself, or through a bank. And if you choose to finance yourself, you can save time. 

So even though, from a purely economic standpoint, you’re better off paying a lower interest rate, there is still a cost to spending your time in pursuit of that loan. It’s up to you to determine whether that cost serves the bigger picture or not. 

[15:15] “The advantage of having cash value accessible and usable is that you absolutely qualify to get a loan against your cash value just because you are a policyholder, and that is a right of being a policyholder. And because you have that quick guarantee, your time is freed up to do so many other things.”

What Can You Do with Your Time? 

Time is an incredibly valuable resource, as entrepreneurs know. While entrepreneurship is in many ways about breaking free from the “trading time for money” model of employment, that doesn’t mean time ceases to matter. Instead, time becomes even more valuable, because you can use it to increase your dollars exponentially, rather than for an hourly rate. So imagine what you could do with extra time in your business if you didn’t have to be as concerned with small, time-consuming details. 

You also want to be sure that your decisions align with your values. Do you value time with family or your relationships? What if the time you saved could give you more time to spend with those you love? The possibility of whole life insurance allows you some flexibility to make choices that are better aligned with your values. 

[43:47] “[With whole life insurance] you have the opportunity to not have to go through all of that cost of acquisition. You can make quick decisions when it makes sense for you to make the decision, not based on what you’re getting paid… not based on interest rates that are high or interest rates that are low, and not even based on whether we’re in a boom cycle or a bust cycle.”

The only way that you can start having capital to make these decisions is by taking over the banking function, and you do that with participating whole life insurance from a mutual company.

Book A Strategy Call

Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!  Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.

Want to see the real-time historical performance of the Infinite Banking Concept? 

Usually, when you hear about policy performance, it's from looking at illustrations. But illustrations aren't "performance," they are projections of future growth, based on current dividends and interest. That's why we love getting the opportunity to share the actual historical performance of Infinite Banking policies, and our philosophy and vision for building our family banking system with multiple policies. 

https://www.youtube.com/watch?v=C39wi4O3838

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. If someone in their 20s were to look at their annual statement, they might get $4 of death benefit for every dollar of premium. This is simply because the cost of insurance increases over time. The sooner you begin a policy, the sooner you can lock in your current insurability. 

New Illustrations

When you get your annual statement, you also receive a revised illustration. This is like a snapshot in time—it’s going to give you a solid idea of what to expect for the next year, and a very general idea of what will happen over the lifetime of the policy. This is because the illustration assumes the same declared dividend for every year, yet dividends change from year to year. There are also likely to be discrepancies in the illustration vs. reality (though typically minor, and sometimes greater than what’s illustrated). 

Once the dividend is applied, all future projections change. In other words, while your illustration gives you a solid picture of your policy’s trajectory, don’t put too much stock in the exact numbers. 

The Difference in a Year

Finally, we share a snapshot of our family banking system from December 2022 compared to December 2023. We compare the total premium paid to date, as well as the total death benefit. One of the first results of note is that in a year’s time we paid 50k in total whole life premium, while our total whole life death benefit increased by over 84k. Meanwhile, our total cash value only increased by about 45k. So our family’s coverage and protection is increasing by more than what we’re putting in, while our cash value increase is getting close to matching our premium deposits. 

Hopefully, this gives you a good sense of what the capitalization phase looks like. We feel very good about the cash value we’ve accumulated, the habits we’ve supported, as well as the values we’ve instilled in our family. To learn more about how we use this family banking system within our family, check out our Family Summit post.

Book A Strategy Call

Are you ready to take control of your finances and legacy? We offer two powerful ways to help you create lasting impact:

Financial Strategy Call – Discover how Privatized Banking, alternative investments, tax-mitigation, and cash flow strategies can accelerate your time and money freedom while improving your life today. Let us show you how to align your financial resources for maximum growth and efficiency. Book a Strategy Call with our team today.

Legacy Strategy Call – If you want to uncover your family values, mission, and vision, and create a legacy that’s about more than just money, we can guide you through the process of financial stewardship and family leadership. Save time coordinating your family’s finances while building a legacy that lasts for generations. Book a Legacy Strategy Call to learn more about how we can help.

We specialize in working with wealth creators and their families to unlock their potential and build a meaningful, multigenerational legacy.