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

If you want to adopt a new financial mindset, you need new financial habits. As Nelson would say, "use it or lose it." Today, we're continuing the journey through Nelson Nash's catalytic book, "Becoming Your Own Banker," and discussing the role of habit, the power of habit, and what financial habits you need to implement if you want to gain the full advantage of the Infinite Banking Concept.

https://www.youtube.com/watch?v=8DLuniN2TjQ

Join this conversation to find out how to make Infinite Banking more automatic, and how to best manage your Infinite Banking system for maximum financial control.

Use It Or Lose ItSimplify Your Decision-Making ProcessIBC is a Personal Monetary SystemThe Power of CapitalizationBook A Strategy Call

Use It Or Lose It

“Use it or lose it” is a principle that applies to many things, including finance. For example, if you have vacation time, typically you’re required to use it within a specific timeframe or you lose it. If you learn a new skill, you’ve got to keep practicing it or you’ll regress. And as many people come to find out as they age, if you stop using your brain and your body, you start to lose some functionality, too. This is a part of the human condition, and to be aware of it and overcome it is imperative. 

This applies to the infinite banking process because IBC isn’t a “set and forget” strategy. You’ve always got to be thinking about how your money is flowing, so much so that it’s a habit… NOT a background player. You’ve got to use your knowledge and skills to achieve the outcomes you want, or you’ll lose the control that IBC affords you. 

On the flip side, your money is not affected by this human condition. You don’t have to “use or lose” your money. This is why many families struggle to save—because they’re always spending. IBC gives you capital and solves your need for financing through your carefully cultivated habits. However, that does not mean you need to finance every deal that comes your way. Having cash allows you to wait for the right deals to come your way, and the habits you create free up your mental energy to recognize those deals. 

Simplify Your Decision-Making Process

One of the benefits of making habits (rather than automation), is that you get to simplify your decision-making process and conserve your mental energy. A great example of this is being a vegan or having some other dietary restriction. It usually comes from a place of principle, and it removes heavy lifting from your choices. When you’re a vegan, you know you’re not going to eat beef or drink milk–it’s a habit and lifestyle. It doesn’t matter who’s watching you or where you are, or even how you’re feeling that day.

There aren’t always equivalents to this in other areas of life. However, IBC can be the foundation of your financial principles so that your choices become a habit. With IBC, saving money becomes a habit. Then, with the mental energy you conserve by adopting this habit, you can spend a bit more energy and thought determining how to use your capital to your best advantage based on IBC principles. 

[18:09] “Your habits ultimately determine the direction of your life, and they free you up to be able to have mental energy in other areas.”

IBC is a Personal Monetary System

What we’re getting at, ultimately, is that the Infinite Banking Concept is not simply a product. It’s not just life insurance. It’s a personal monetary system that will completely change the way you think about and use your money for the rest of your life—and hopefully for your future generations, too. 

IBC gives you capital, which gives you control. And just like you want to use your knowledge and skills so you don’t lose them, remember, you also want to hold your money for the right moment. The habits you create—saving money instead of spending—give you the cognitive space to ask the important questions. 

[34:45] “If you want a new idea to work for you, you have to have habits that support that idea. And if your habits don’t support that idea and make it more automatic for you, you’re going to lose what you were trying to gain by changing your mindset in the first place.”

The Power of Capitalization

The thing about capitalization is that you’re going to have a need for capital over your entire lifetime. It’s not just something you need now. That means you need to have a long-term view of capitalization. A good long-term view is about sustainability. How do you make good choices now that will give you more good choices in the future? 

The first step would be to start a policy now. You need to use that capital for IBC or you’ll lose the opportunity for those dollars today. Of course, make sure that you can pay your premiums now, and in the future. Then, be smart about how you capitalize. You want to invest for cash flow so that you can pay your policy loans, or make personal purchases with the awareness that you must pay those loans. Doing this keeps your policy in good standing and makes it viable now and in the future. 

[50:04] “If you want uncommon results, then you have to do things in an uncommon way.”

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.

Dividends are a crucial part of why whole life insurance is such an ideal asset for conducting an Infinite Banking Concept (IBC) strategy. But because dividends are not guaranteed is the life insurance contract, it raises the question: can we rely on life insurance dividends in a bad economy? Join us as we explore the inner workings of life insurance dividends, how it relates to the current economy, and why we don't think you have to be afraid.

https://www.youtube.com/watch?v=6ONu2ZroHeQ

Tune in as Bruce explores the factors at play, and find out how to navigate uncertainty while maximizing returns.

How Are Life Insurance Dividends Calculated?Understanding the Dividend RateThe Dividend is Chasing the Death BenefitAre Life Insurance Dividends a Return of Premium?The Relationship Between the Treasury and Life Insurance DividendsCan You Still Get Life Insurance Dividends in a Bad Economy?Book A Strategy Call

How Are Life Insurance Dividends Calculated?

While all mutual companies calculate their dividends in different ways, and the calculations are proprietary, the components of those calculations are all the same. Essentially, life insurance companies have income and expenses. 

Expenses for a life insurance company include payroll, death claims (the most significant expense), and other overhead costs. 

The income is all based on products sold. The companies then invest that income. Mutual companies have a reputation for investing very conservatively, as well as having significant liquid reserves. A significant portion of the investments are made up of bonds and real estate. Insurance companies also make a profit on policy loans to their policyholders. 

When there is a profit, those profits are then distributed to policyholders. The insurance companies typically declare the rate for the coming year in December, based on all this information: expenses, profits, etc. 

Understanding the Dividend Rate

Here’s where things can get confusing. Just because a company declares a 5% dividend rate does not mean that each and every policyholder is getting a 5% increase in their cash value. The dividend rate is a gross number and is actually applied differently across policies. 

Factors that may contribute to your actual dividend include:

Any fees from your policy

Policy costs and expenses

Existing policy loans

Age of your policy

In some cases, policies may even earn more than the declared dividend. There are many factors that contribute to this because the “goal” of every policy is endowment, which causes the dividend to “chase” the death benefit. 

The Dividend is Chasing the Death Benefit

[9:10] “The dividend is actually chasing the death benefit, and the cash value is always chasing the death benefit. What do we mean by chasing? Whenever you take out a policy, let’s say you put $50,000 in the first year… it’s going toward the base policy. And the base policy is the foundation or the rock of the policy. It’s the true insurance portion of the policy. Some of it goes to a term rider, and the term rider is there so we do not MEC the policy. And the last part is the paid-up additions rider. And those three cause a relatively high death benefit versus the $50,000.”

The policy is set to endow at age 121. This is the point when the cash value is equal to the death benefit, and you will receive the full death benefit if you’re still living. Over the course of your lifetime, you’re watching your cash value chase this endowment. Meanwhile, the death benefit is also increasing because of PUAs. 

What this means is that your cash value and the death benefit of your policy are going to grow differently. Your policy has to have the growth momentum to actually reach this endowment. A 5-year-old has 116 years to accumulate enough money to reach endowment, while a 50-year-old only has 71 years. They might even get more than the declared dividend in order for the policy to keep up. 

You can probably see now how these calculations get really complicated and confusing. Hopefully, this also illustrates why it’s not necessarily helpful to compare declared dividends across companies. It’s more important that the company has a history of paying dividends than what the rate is. 

Are Life Insurance Dividends a Return of Premium?

If you look at the IRS classification, dividends are stated as a return of premium. However, in practice, this is not the case. Otherwise, your cash value would never out-pace your premium contributions. 

This classification is for regulatory purposes because dividends really can’t be guaranteed since they rely on profits. You can rest assured that this is strictly from a legal standpoint. That’s why it’s important to look at an insurance company’s history of paying dividends. The best companies have been paying dividends for 100 years or more, even in the worst economic conditions. 

Yes, sometimes this means the declared dividend is extremely low. Yet the companies with conservative practices still paid those dividends. The long-term thinking of mutual companies is a benefit to all policyholders. 

The Relationship Between the Treasury and Life Insurance Dividends

[20:46] “The life insurance dividends have mirrored the 10-year Treasury over the past 30-plus years. And we could have gone back further than that, and [we would see] that they would have mirrored that also.”

This correlation is important, because we’re seeing the Treasury start to increase, actually. So we can expect that as the Treasury is rising, so will the insurance company’s declared dividends. This bodes well for the immediate future, but it also suggests a positive long-term future, too. Because even when the Treasury was at near-zero rates, the insurance companies matched that—they went near-zero, but not zero altogether. 

This is all part of a conservative strategy on the insurance companies’ part, in order to maintain their financial strength in any economy. So even when dividends are low, you can rest assured that it’s part of a long-term strategy that is to your benefit in the big picture. 

Can You Still Get Life Insurance Dividends in a Bad Economy?

[40:43] “I am actually very optimistic about the dividends for a couple [of] reasons. I do not believe we are going to go back to near-zero interest rate environments for a sustained time period. I tell people all the time—if these insurance companies were paying anywhere between a five and a six percent dividend in an environment where the treasury was near-zero… that means going into the future, the dividends will actually be going up. And if they’re going up, then [by] getting into a contract now, that means you’re going to get it when they go up. And those higher dividends are going to compound throughout the entire life of the contract.”

The real star of the show here is the compounding effect. By starting a policy and having it grow now, you’ll have such a large volume that even a lower declared dividend in the future will make an impact. The reverse is also true—any accumulation you have now, even if the dividend was low, would benefit you later should the rate go up.

And remember, once life insurance dividends are applied to your policy, they are a guaranteed part of your cash value floor. You can't lose that money. As important as interest rates are, the volume of your earned interest also matters. The more cash value you have, the better off you'll be regardless of the rate, all thanks to compounding.

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.

Are you ready to transform your financial growth mindset? In today's enlightening episode, we dive deep into Nelson Nash's book, Becoming Your Own Banker, and explore the concept of the arrival syndrome - a dangerous belief that we've reached the pinnacle of knowledge and understanding. We'll discuss the fixed mindset versus the growth mindset, and how these mindsets play a crucial role in the world of Infinite Banking.

https://www.youtube.com/watch?v=h1TuPm4voX0

Hear our recommendations on defeating the Arrival Syndrome, embracing continuous learning, and making the most of our services at The Money Advantage to create a tailored financial plan. This episode will challenge your beliefs and reveal new strategies to keep and control more of your hard-earned money. Don't miss out!

The Arrival SyndromeCarol Dweck and the Fixed MindsetArrival Syndrome and IBCBook A Strategy Call

The Arrival Syndrome

Arrival Syndrome, which Nelson Nash discusses in his book, Becoming Your Own Banker, is detrimental to wealth building. 

[7:15] “If we think we’ve arrived, if we think we know everything, then we have this arrival syndrome, which is the illusion of knowledge that shortcuts us and makes us stop growing.”

If you believe you have arrived—at success, at financial freedom, at peace—you give yourself permission to stop trying. Doing so prevents any future growth, and that’s a dangerous place to be. For example, people who experience large windfalls often see a large sum and believe that they’ve made it. They think they’ll be set for life because it’s the most money they’ve ever seen. So they stop working and squander money, only to realize that money was finite after all. 

You can also think of it this way—what if Steve Jobs had stopped at the Macintosh? What if Henry Ford stopped after building his first gasoline engine? These were valuable inventions, and neither of them could guess just how far their work would go, and yet they kept inventing and growing. Their growth mindsets and curiosity allowed them to keep pushing the envelope, keep inventing, and do the unthinkable.

[7:55] “Arrival syndrome is equal to arrogance, and arrogant people breed ignorance. Ignorance is about not even knowing something. It’s not that you can’t know it, [it’s that you haven’t been exposed to it].” 

Carol Dweck and the Fixed Mindset

A similar idea comes from Carol Dweck, author of “Mindset: The New Psychology of Success.” Rather than arrival syndrome, she talks about having a “fixed mindset.” Those with a fixed mindset believe that intelligence is static, desire to look smart, and may even avoid things that seem challenging. By having a fixed mindset, you’re destined to plateau and have your worldview confirmed. 

If you look at the world through a fixed mindset, you’re experiencing arrival syndrome. You don’t feel like you have anything left to learn or do; you don’t have to exert yourself or expend effort, and you’re locked in. While you may be perfectly fine in this state, you'll never strive for anything greater. The possible becomes impossible because there is no room or desire for growth.

[12:55] “Whereas a growth mindset recognizes that we all have the capacity to continue growing. There’s always more growth potential beyond what we already know, and we have to be humble… in order to have a growth mindset.”

If you can switch your thinking around, the impossible becomes possible with effort, intention, and practice. There's no guarantee that things will be easy, however, you create new possibilities for yourself and your family every day. Making more money is possible, getting out of a bad spot is possible, generational wealth is possible—and an infinite number of things you can't even imagine yet. IBC is a part of this world of possibility because it requires a growth mindset to unlock its true value.

Arrival Syndrome and IBC

The common pitfall we see is when someone discovers IBC there's a chance they reach arrival syndrome themselves. Not only is this true for people who want to use it, but it's also true for financial professionals. They believe that after reading up on IBC, they’ve learned everything they need to, so further education or communities that might support growth seem unnecessary. And yet, there’s so much to learn. People don’t know what they don’t know. And even if you do dedicate years to learning about IBC, there's new stuff to discover constantly.

[34:15] “There’s a lot of people in this industry that I believe have actually not fought off the arrival syndrome yet.”

Within IBC spaces, you’ll find that advisors who have been in the business for decades are constantly seeking new wisdom and discovering new ways to help their clients. These growth-oriented people are a good fit if you yourself are growth oriented. And that's the secret—you have to adopt a willingness to learn, too.

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.

You've decided that you want an Infinite Banking (IBC) policy. You've done the research, and you want a better place to store cash that has the benefits of safety, liquidity, and growth on cash storage.

https://www.youtube.com/watch?v=1qJ8xIj5W4A

What's next? What should you expect as you go through the purchase process?  

In this episode, we take a deep dive into the Infinite Banking Concept (IBC) and explore the intricacies of illustrations, underwriting, and loans. Join us as we navigate the complexities of IBC and help you make informed decisions about your financial future.

Insurance is a ContractDirect Recognition vs. Non-Direct Recognition Life InsuranceYour Finances Impact Your ChoicesThe IBC Underwriting ProcessPossible Insurance Rating ClassesAccelerated UnderwritingIBC Death BenefitBook A Strategy Call

Insurance is a Contract

[4:28] “Contracts are the backbone of any society.”

Nelson Nash said this and furthermore believed that if contracts were breached, that would mean the collapse of society. This is why you can rely on your whole life insurance policy–anything that is in your contract and part of your policy design will remain true for the entire length of your policy. 

Even as tax law changes and the IRS modifies what’s possible with a life insurance contract, this only affects future contracts. For example, in 1988 the IRS introduced something called a MEC limit. MEC stands for a modified endowment contract and is what a life insurance policy becomes if it’s over-funded. When you have a MEC, your policy loses all tax advantages. 

This happened because people were putting so much money into their insurance and accessing that money tax-free, and the IRS wanted a slice of the action. However, thanks to contract law, MEC limits (the maximum premium you can contribute without turning your policy into a MEC) only applied to new policies. To this day, Bruce has policies from the 80s that were never subject to MEC limits. 

This is an incentive to start a policy as soon as possible. You don’t know what the future holds, or how the IRS might modify the rules. You do know that you have a need for capital and a need for insurance. By locking it in today, you have more time to build capital, and you lock in all the current benefits of a life insurance contract. Those benefits cannot and will not be changed once the contract is signed. 

Direct Recognition vs. Non-Direct Recognition Life Insurance

If you’re ready to buy a policy, it’s worth considering whether you want to work with a direct recognition or non-direct recognition company. This determines how dividends are applied to your cash value when you have an outstanding loan. 

Direct recognition companies “directly recognize” when you have an outstanding loan, and apply the dividend differently to any cash value with a lien on it. Non-direct recognition companies apply the dividend equally across your cash value, even if you have a lien on some of it. While this may make non-direct recognition seem better, there are no deals in the life insurance industry.

In other words, everything is a trade-off. Direct recognition doesn’t automatically mean that cash value with a lien on it will earn less. It really means that it will be applied proportionately to the loan interest rate. And if the interest rate is much higher than the declared dividend, that portion of your cash value may actually earn a bit more. But if you intend to use your cash value often, non-direct recognition may be your best bet.

The important takeaway here is that one is not leagues better than the other. After all, interest rates and dividends are unpredictable. Companies will ebb and flow. So don’t get too hung up on the little things, especially if it holds you back from making a choice. Go with your instinct, and don’t sweat the decision too much. You can always have multiple policies with different constructions. 

Your Finances Impact Your Choices

Before you make any choice, it’s crucial that the team you’re working with takes your full financial picture into consideration. There’s no single “best” policy design. While there are some guidelines, your specific policy will depend on what you already have, and what your goals for the future are. This will even change over your lifetime, so as you grow, you may find yourself with a portfolio of very different policies. 

[19:36] “A full financial picture means they need to know what your income is in the household. They need to know what your expenses are in the household. They need to know not only what your assets are, but where they’re laying.”

While insurance producers are not legally considered fiduciaries, we believe that this is a fiduciary responsibility your team has to you. Your personal economy matters. It’s going to impact your base premium to PUA ratio, the amount of death benefit you need and how to get it (such as blending term insurance and whole life insurance), whether you’re going to prioritize early cash value or not, and much more. 

Other red flags to consider:

Your agent doesn’t give you a full illustration (if it says there are 19 pages, you should receive 19 pages)

The person selling you insurance isn’t licensed or at least not in your state. You can ask your agent for their license number to reference

The IBC Underwriting Process

Before you can get approved for a whole life insurance product, you’ve got to go through some underwriting. Underwriting is when an insurance company determines how risky it is to insure you. And since whole life insurance is a permanent product, the insurance companies have to be more thorough. To put it bluntly, they want to ensure that you won’t die tomorrow. 

This means the company will look into your current health and health history. Fortunately for you, this happens on the insurance company’s dime, not yours. You’ll complete a questionnaire about your health, as well as your personal life. They want to know if you smoke, if you engage in dangerous behavior (like regular sky-diving), and other habits or facts that may indicate risk. It’s crucial to be honest since it’s all a part of your legally-binding contract. 

You’ll also have to get a health exam, at no cost to you. Oftentimes, you can have a nurse come right to your house. Usually, this consists of a blood draw, a urine sample, and a few simple measurements. 

While having a dangerous hobby or being a smoker won’t automatically make you ineligible for insurance, you may get a lower rating. Your rating indicates your risk to the company. The better your rating, the more death benefit you can get for the same premium. To put that another way, the better your rating, the lower your premium for a given death benefit. Unfortunately, you may not be eligible for a policy at all if you don’t meet certain health requirements.

Regardless of your rating, this does not impact your ability to conduct an Infinite Banking strategy. It won’t affect your cash value or how that works. 

Possible Insurance Rating Classes

If the company determines that you are eligible for whole life insurance, there are several ratings that you can get. As mentioned, this affects how much your premium will be relative to the death benefit that you want. 

The possible ratings are: 

Preferred Plus. This is the highest possible rating and is extremely uncommon. People in this class have no negative health history, don’t take medications, have the ideal height/weight ratio, and have a clean family history. 

Preferred. If you have excellent health, but are otherwise within height and weight guidelines, or have an issue that’s easily managed, you may be able to get a preferred rating.

Standard Plus. This is a rating for people who are in good health but may be slightly outside of the ideal height/weight ratio, or have some minor health issues. 

Standard. This is the lowest eligible rating, and also the most common. About 75% of policyholders get a Standard rating. This may mean you’ve got average health and health history, maybe you take some medications, and your height/weight ratio does not meet the guidelines. 

There’s also a smoker/non-smoker designation. Non-smokers get a slightly better premium for their death benefit. Note that marijuana is now treated like tobacco, and gets a smoker rating. They’ll determine this from your fluids, regardless of how you consume the marijuana/tobacco. 

Accelerated Underwriting

Accelerated underwriting is an expedited way to get approved for life insurance. If you’re young and in good health based on some information gathered, you can actually forgo the health exam. You’ll get an offer for a policy, and can actually get approved in a 24-hour window. 

IBC Death Benefit

Last, but certainly not least, there's the death benefit to consider. This is also what we call the "face amount" of the policy. This is what you're purchasing with your premiums. While your death benefit can actually increase over time with PUAs, the face amount you choose is your baseline.

When you die, the death benefit is paid to your heirs. This could be your spouse, your children, your parents, or anyone else you love. You can also change these beneficiaries at any time, by contacting the insurance company. For example, if you get a divorce with no kids, you may choose to take your ex off the list. If you do have kids, maybe you still want to list your ex as a beneficiary, at least until the kids reach adulthood. It all depends on your dynamics, just remember to make changes promptly.

Once you determine beneficiaries, be sure to have conversations with your family about money, money management, and good stewardship. You want your loved ones to be prepared for a windfall, even if it happens 50 years from now.

Choosing the amount of your death benefit all comes back to your personal economy and goals....

Do you want to be in control, have excellent opportunities, and automatically gain the upper hand in negotiations? In part 9 of the "Becoming Your Own Banker" series, we discuss the path to financial freedom and control with this truism we call The Golden Rule: "Those who have the Gold make the rules."

https://www.youtube.com/watch?v=TTvP69_9wVI

In today's episode, we'll discuss the benefits of capitalism, the lost art of saving, the proper role of the Constitution, Ayn Rand, Shakespeare, personal responsibility, the requirement of an alert, informed, and jealous citizenry... and how it all ties back to the Infinite Banking Concept. Don't miss this episode as we continue on our journey through Nelson Nash's incredible book, "Becoming Your Own Banker."

Ethical Capitalism and the Golden RuleWhy You Want to Be in ControlBeing in a Position of Capital with Infinite BankingThe Benefits of Non-Liquid InvestmentsResponsibility in a Capitalistic SocietyBook a Strategy Call

Ethical Capitalism and the Golden Rule

Social media is rife with people who live for today, who make promises to help people get rich quickly. Ultimately, these are people who get rich on promises rather than service, while the people they’re supposed to help do not. This is shortsighted and unfortunate, and is not exemplary of ethical capitalism. Unfortunately, this is what the “Golden Rule” has turned into. 

You’ve probably grown up hearing about the biblical Golden Rule: “Do unto others as you would have them do unto you.” In Becoming Your Own Banker, Nelson says that financially, the Golden Rule is that “those who have the gold make the rules.” 

While this can be easily twisted, like with the hundreds of social media entrepreneurs, it can also unlock a path of personal wealth for you and others. When implemented from the standpoint of ethical capitalism, this Golden Rule is actually our greatest gift.

Why You Want to Be in Control

[15:00] “Those who are in control, who have capital, are in power. They make the rules that benefit themselves best and make the rules that everyone else follows. We don’t have to be suckered into following these rules. It’s just a natural thing that happens. And the reason that it happens is because when you have control of the capital, everyone else needs that capital.”

The remedy to this is to appreciate the value of future thinking and to seek your own capital. So many of us are “living for today,” in Nelson’s words, and not thinking about what it takes in the long term to be successful. And so we give up control of capital to banks and other institutions. When you remove your capital from these systems, you take back your control, and therefore your own power. This is the long term value of saving money.

[16:19] “We don’t appreciate, in our culture, having capital. We don’t appreciate the act of saving and setting capital aside so that we have access to that capital. And because we have absolved that responsibility of controlling capital, who controls it? Somebody besides us.”

Being in a Position of Capital with Infinite Banking

If you don’t want to have people control you, you must use the golden rule to take control. If you don’t want the banks to control you, then get your money out of the banks and into a whole life insurance policy. 

By doing this, you can accumulate money that benefits you and not the banks, which profit from leveraging your money. After all, banks are notorious for using customer deposits to make loans and investments, then paying a sliver of that back in interest.

Whole life insurance with a mutual company allows you to grow your wealth at a more favorable earnings rate, while also providing the ability for you to leverage your own money to make investments. You get to have complete control over when and why you use the money, and the banks have no reach or power over your personal capital. 

The Benefits of Non-Liquid Investments

In addition to having liquid capital in whole life insurance, it’s also helpful to have non-liquid capital, depending on where you keep it. This is especially true when you consider how tenuous the stock market is right now.

[26:00] “When you have something that’s not liquid, it’s not affected by public emotion because you cannot sell it like you can in the public markets. And so taking emotion out of it by actually building a policy that you have to delay gratification… is actually a good thing for building capital into the future.”

When you have non-liquid assets that are outside of the stock market, you have much more control over your investment. While there’s still some risk, you have much more room to make specific investments according to your goals when you look outside of stocks. 

It’s okay if you don’t leverage all your capital for investments. There is tremendous value in holding capital and simply saving money. You don’t need to be constantly deploying it, and by sitting on your savings, you can actually wait for bigger and better opportunities and be in a position to partake in them. 

Responsibility in a Capitalistic Society

Another facet of this “control” issue is dependence. When you’re not in a position of cash or savings, you may become dependent on others or even the government. And while it can sound enticing or helpful to get this support, you give up control over your own life. You lose motivation to earn your own capital, thus you lose your ability to save. Not to mention, you have to follow the rules of the program or the person lending you the money, which can limit how you live and enjoy your life. 

All in all, these programs sound promising, but absolve you of all personal responsibility, thus also absolving you of any control that you have. And a life that you cannot control is not free. 

[39:59] “You’re going to go through trials and tribulations in your life. So then, the people that are in charge—Congress, the President—they then start making promises to you, but those promises come with consequences and strings attached.”

In Atlas Shrugged, Ayn Rand suggests that the end of financial equality is destruction—of relationships, motivation, society, and more. The opposite of that is self-responsibility in a free market, which in her book leads to freedom, thriving families, and healthy relationships. 

[49:50] “Infinite banking is not about the numbers, it’s about a way of life. It’s about a philosophy that you’re going to live your life a certain way.”

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.

In this episode of the Money Advantage podcast, we explore how to avoid the pitfalls of leaving an inheritance and ensure you leave a positive impact on future generations through intentional wealth management and legacy planning.

https://www.youtube.com/watch?v=ZXFUVVoT_6s

Inheritance, a transfer of wealth from one generation to another, can be a double-edged sword. On one hand, it can provide financial security and opportunities for the next generation. On the other hand, if mishandled, it can lead to family conflicts, spoiled children, and the squandering of hard-earned fortune. We explore the insights of Dr. Lee Hausner, a renowned consultant to high-net-worth families, family businesses, and family offices, on how to avoid the pitfalls of leaving an inheritance and ensuring a positive impact on future generations. We delve into the importance of understanding the power of money, the various types of wealth present in society, and the significance of instilling the right values in the next generation of wealth holders.

Avoiding the Pitfalls of Leaving an InheritanceWealth Transfer and Legacy PlanningStrategic Planning for Family LegacyCreating Successful and Prosperous FamiliesSibling Competition and Social CompetencyAbout Dr. Lee HausnerBook a Strategy Call

Avoiding the Pitfalls of Leaving an Inheritance

Dr. Lee Hausner's background as a psychologist in the Beverly Hills school district exposed her to the effects of different types of wealth on families. She observed first-generation entrepreneurial wealth, trust fund wealth, and industry wealth, each with its unique set of challenges and expectations. This experience, coupled with her expertise as a consultant to high-net-worth families, has given her valuable insight into the potential pitfalls of leaving an inheritance.

One of the key challenges in wealth transfer is finding the right balance between providing financial security and ensuring that the next generation does not become complacent or entitled. Overindulgence and a lack of understanding of the value of money can lead to destructive behaviors and a squandering of family wealth. Dr. Hausner emphasizes the importance of raising children who are competent and self-confident, regardless of their financial situation. This foundation will help them navigate the complexities of wealth management and inheritance, ultimately leading to more successful and prosperous families.

Wealth Transfer and Legacy Planning

A successful wealth transfer and legacy plan requires intentional and strategic planning. Dr. Hausner suggests that families think of themselves as a business, applying the same strategic planning techniques to their family life as they would to their professional endeavors. This includes setting goals and strategies, holding family meetings, and fostering a culture of open communication and collaboration.

In addition to teaching children about the fundamentals of money management, it is crucial to instill the right values and work ethic in them. This can be achieved through a combination of education, experience, and mentorship. Dr. Hausner also highlights the importance of being strategic about when and how much to pass on to the next generation. A well-planned wealth transfer will take into consideration the needs and abilities of each family member, ensuring that the resources are used productively and effectively.

Strategic Planning for Family Legacy

Creating a successful family legacy requires a clear vision and a strategic approach to wealth management. Dr. Hausner recommends reverse-engineering the desired family outcome and breaking it down into achievable goals and milestones. This process should involve open and collaborative discussions among family members, ensuring that everyone's needs and aspirations are considered.

One of the perennial concerns in wealth distribution is the issue of equality. Dr. Hausner suggests that families should focus on giving recipients what is beneficial, rather than simply striving for equal distribution. This approach ensures that each family member receives the resources and support necessary for their individual success, without fostering resentment or rivalry.

Additionally, selecting the right trustees and advisors is critical in ensuring a smooth wealth transfer and effective management of family assets. The next generation must be equipped with the knowledge and skills to take on the responsibility of managing the family's wealth and continuing its legacy.

Creating Successful and Prosperous Families

Dr. Lee Hausner's wealth of wisdom on family business succession and legacy planning highlights the importance of creating a strong family culture and helping the next generation become competent and self-confident. Being intentional in the business of the family, setting goals and strategies, and holding regular family meetings are crucial to ensuring the success of the family and its legacy.

Legal documents and estate plans can provide a framework for wealth management, but they cannot guarantee the success of a family's legacy. The family culture, values, and relationships are ultimately more important than a perfect estate plan. Dr. Hausner encourages families to prioritize these aspects of their legacy and to reach out to professionals if they need guidance and support.

Sibling Competition and Social Competency

Helping children develop their own unique strengths and interests, rather than pitting them against one another in competition, is an essential aspect of fostering strong family relationships and a successful wealth transfer. Dr. Hausner shares her experiences of helping siblings find their individual paths and avoid unnecessary rivalry. Encouraging children to participate in different extracurricular activities and providing opportunities for collaboration and support can help foster strong connections between siblings, ensuring a lasting family legacy.

About Dr. Lee Hausner

Dr. Lee Hausner is an internationally recognized psychologist, business consultant, seminar leader and keynote speaker. Dr. Hausner served 17 years as the senior psychologist for the Beverly Hills Unified School District during which time she authored the seminal work regarding wealth and the family, Children of Paradise: Successful Parenting for Prosperous Families. She has co-authored with Douglas K. Freeman, J.D. Legacy Families: The Definitive Guide to Creating a Successful Multi-generational Family and an A Founders Guide to the Family Foundation. Most recently she contributed chapters to the resource books, Wealth of Wisdom, the top 50 questions wealthy families ask and More Wealth of Wisdom.

Dr Hausner co-founded IFF Advisors a consulting practice providing services for high net-worth families, family businesses and family offices. She incorporated a unique six-step transition model for effective succession of family businesses in her critically acclaimed family business resource book, Hats Off to You: Balancing Roles and Creating Success in Family Business Succession. A frequent guest on national media, a quoted expert in national publications, a keynote speaker for high-net-worth private client conferences for the major financial institutions domestically and internationally, she is also a highly rated resource to YPO, WPO, CEO, EO, Tiger 21 and was a presenter at the Davos conference in Switzerland.

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Book a Strategy Call

Navigating the pitfalls of leaving an inheritance, complexities of wealth transfer, and family legacies can be challenging, but with the right approach and guidance, it is possible to create successful and prosperous families. By understanding the power of money, instilling the right values in the next generation, and adopting intentional and strategic planning, families can ensure a lasting and positive impact on future generations.

Would you like guidance for creating a meaningful and impactful family legacy? 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? Start with my book, Seven Generations Legacy. It’s packed with actionable insights and strategies to help you build a strong foundation for your family’s future. Once you’ve explored the principles, let’s take the next step together. You can book a call with me at Seven Generations Legacy®, where we’ll work to create a personalized plan tailored to your family’s unique goals and vision. Let’s start building your legacy today!

In part 8 of the "Becoming Your Own Banker" series, we dive deep into how to save taxes by implementing the Infinite Banking Concept in your financial life.

https://www.youtube.com/watch?v=SNusw15mzyM

During our discussion, we dig into the concepts of legal plunder, taxation, and the triple tax advantage of whole life insurance. We also share an enlightening live Q&A session on financial concerns, emphasizing the importance of asking questions and modeling successful behaviors. Nelson Nash was a master at getting people to think and develop a growth mindset; we invite you to join us as we unpack his wisdom and learn together.

Don't miss this episode, as we share valuable insights on money, human nature, and the world around us, inspired by Nelson Nash's incredible book, Becoming Your Own Banker. 

Join us as we show you how you can use dividend-paying whole life insurance to keep more of your money working for you and continue the conversation about the Infinite Banking Concept through Nelson Nash's book, "Becoming Your Own Banker," today!

Parkinson’s LawWillie Sutton’s LawTax Confusion and ManipulationHow to Save Taxes?Whole Life Insurance is Tax-AdvantagedBook A Strategy Call

Parkinson’s Law

Parkinson’s Law, which Nelson mentions in his book, suggests that it’s in our human nature to spend everything we make. It’s something that every single person struggles with—even our team. And it takes a daily, conscious effort not to spend. 

But one of the great benefits of IBC is that you have a place to store your savings that feels like a bill–your premiums. This mechanic alone can help you to overcome Parkinson’s law and save more money, though you’ll still have to work on it in your daily life. 

Willie Sutton’s Law

In Nelson’s book, Becoming Your Own Banker, he also mentions Willie Sutton’s Law. This is the law that whenever you have capital, someone is going to want to steal it. This could be a person in your life, but it also pertains to institutions: the IRS, creditors, fees, and much more. 

There’s an Aesop fable that describes this beautifully. A colony of ants worked hard all summer to build up their food stores, while the grasshopper scoffed at any hard work. But when winter rolled around, the ants were happy, and the grasshopper was not—he didn’t have anything to eat. So he sought to steal from the ants. 

The government isn’t labor-producing, and so they steal from working people by way of taxation. This may be controversial, but Nelson even says that the biggest thief in the world is the IRS. 

[20:43] “If the law takes from some people what belongs to them and gives it to other people to whom it doesn’t belong, the definition of that is theft or legal plunder.”

Tax Confusion and Manipulation

Over the years, plans and products have popped up as a proposed solution to taxation. A 401k and Roth IRA are examples of this. The problem is that the government is responsible for that taxation in the first place. And it seems to be that they’re setting things up so that they always benefit. 

[30:20] “If you have a problem of government taxation, and the government is creating the solution to the problem that we have, how can we trust that the… entity that is creating the problem is also creating a solution that really is in our best interest?”

The answer is, you can’t fully trust the solution provided by the government, because they created the problem. And in the end, you still pay taxes when you opt into a qualified plan. The question just becomes when, and qualified plans ensure that you just pay them later.

How to Save Taxes?

So if taxation is inevitable in some ways, how do you come out on top? The solution is to take control whenever possible. And one way to do that is to stop storing your cash in banks and government-run products. Infinite Banking helps you preserve as much wealth as possible. 

[32:13] “This whole idea of Infinite Banking is a powerful solution to save in taxes, and mostly because it’s not a government-sponsored program.”

Whole life insurance allows you to save on taxes in the way that you pass wealth to your heirs, as well as the way that you use your wealth while you’re alive. While there are some government restrictions on whole life insurance, it’s fundamentally a crucial product for tax-advantaged saving. 

If you question the effectiveness of whole life insurance, remember that the government is constantly trying to place additional limitations on it. You can imagine that if it’s not good for the government from a financial standpoint, it probably IS good for you. 

Whole Life Insurance is Tax-Advantaged

While whole life insurance is not tax free (you pay premiums with after-tax dollars), your experience of it can be tax free. Once you pay premiums, you don’t pay tax again on that money, not even the interest and dividends, while it remains in your cash value account. When you want to use the cash, you can access it via a policy loan, which does not trigger a taxable event. You can also withdraw money, up to the cost basis, without incurring a taxable event. These advantages allow you to store, grow, and use capital in a way that doesn’t incur more taxes. 

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.

Are you shopping for the best Infinite Banking policy, but want to first make sure you have the correct policy design with a good life insurance company and a team you can trust?

https://www.youtube.com/watch?v=aUwFuc7NCec

Here’s the first thing you need to know: there’s no such thing as an “Infinite Banking Policy.” We only use that phrase here because it’s commonly searched, and we want to meet you where you are. But the truth is, Infinite Banking is not a product—it’s a strategy.  The vehicle we use is properly structured whole life insurance with a mutual company. But it’s not the policy alone that creates results. It’s how the design, funding, and use of that policy align with your larger financial strategy and your legacy goals. That’s where most people get off track—and where working with a like-minded team becomes essential.

In this episode, we dive deep into the infinite banking concept and discuss the importance of choosing the right mutual insurance company and working with a like-minded advisor or agent team.

Join us as we share our insights and experiences to help you better understand and implement this powerful financial strategy in your own life. If you want to say goodbye to second-guessing and regret, and make Infinite Banking decisions with certainty and confidence, tune in today!

Building Confidence Through EducationHow to Choose the Best Insurance Company1. Choose a Mutual Company2. Look at Financial Ratings3. Do They Have a History of Dividends?4. Customer ServiceBest Whole Life Insurance Companies for Infinite BankingHow to Choose the Best Producer/TeamThe Five Tenets of IBCHow Does Your Advisor Support You? How to Buy the Best Infinite Banking Policy1. Choose Whole Life Insurance2. Paid-Up Additions3. Apply Dividends to Cash ValueCommon Mistakes to Avoid When Choosing a PolicyReal-Life Examples: The Living Proof of Policy DesignUsing Whole Life Insurance to Build Wealth and Business FreedomBook A Strategy Call

Building Confidence Through Education

Finances can be a tough space to navigate because money is deeply personal, and everyone has different opinions. That’s why we value providing education – because we want to give people the tools they need to build confidence and make their own decisions about money. 

Confidence allows you to take action, build trust, and create a positive cycle. You learn more, become more confident, take more action, and build more trust. This simple, small shift allows you to be at the helm of your financial choices, rather than shifting responsibility off your plate completely.

How to Choose the Best Insurance Company

If you’re interested in infinite banking, based on our material or something you’ve heard elsewhere, you may have questions on how to do it “right.” While this can vary depending on your personal money goals, there are some general rules of thumb to follow when you buy a life insurance policy for IBC purposes. Let’s go over them together. 

1. Choose a Mutual Company

A mutual company means that the insurance company is owned by the policyholders. In order to benefit from dividends, this is the type of company you want to work with. As a partial owner, you get to participate in all profits. While not guaranteed, mutual companies tend to run a tight ship and make very conservative long-term decisions. You can expect them to profit. 

The other option is to choose a stock company, which is beholden to shareholders. These shareholders may not even have a policy with the insurance company. This can drive stock companies to make riskier, short-term decisions that aren’t always in the best interest of policyholders. You also don’t get those dividends if they do turn out okay. 

2. Look at Financial Ratings

In addition to being a mutual company, you also want to work with a company that has a solid financial history. A good track record suggests that they know how to manage risks long-term and can continue to do so for 30+ more years. 

You can check a company’s financial rating in any of the major rating services: Standard & Poor’s, AM Best, Fitch, and Moody’s. A company with at least a 90% rating is a good company to work with. 

3. Do They Have a History of Dividends?

Another benchmark of a good mutual insurance company is its history of paying life insurance dividends. This indicates that they have good long-term vision and are capable of turning a profit even in dire economic landscapes. Many mutual companies have paid dividends every year for the last hundred years, which means they turned a profit during major wars, recessions, depressions, and the housing crisis. 

This is a great indication of good stewardship and consideration for policyholders. So be sure to choose a company that has a solid record of profit. 

In the same vein, it’s worth taking note of how close companies are to hitting their declared dividend. Occasionally, companies overstate what they think the dividend will be and end up being off the mark. It’s not necessarily a deal-breaker, yet something to be aware of as you look for companies. 

4. Customer Service

What kind of customer service does the insurance company provide? How responsive are the insurance companies? This is information your producer or agent will know well. Each company operates differently and has its own way of doing things. The best life insurance companies for infinite banking may even be faster at distributing funds than others. If you’re going to be using your policy over your whole lifetime, choosing a company with good service will benefit you. 

It’s also important to note that while you can execute an IBC strategy with any mutual company, not every insurance company supports the idea or understands it. Your producer can also help you identify which companies understand what you’re trying to do. 

Best Whole Life Insurance Companies for Infinite Banking

Your legacy is not the caboose of your financial life. It's the engine. Selecting the best infinite banking policy isn't a decision to leave buoyed by happenstance.

Choosing the right whole life insurance policy to implement the Infinite Banking Concept isn’t about chasing a top 5 list. It’s about discernment—and alignment.

You may notice we’re not naming specific companies here. That’s intentional.

Because this isn’t about which company we think is best. It’s about helping you find the company that best fits your values, vision, and goals. We’ve included a full section in this article that walks you through how to evaluate a company—but naming names here would shortcut that process, and potentially mislead.

The truth is: there are several strong mutual companies that support Infinite Banking with excellent policy design, financial stability, and client service. But which one is right for you depends on your cash flow, your timeline, your use of capital, and the specific features needed to implement the strategy well.

What matters most is working with a company that:

Embraces the Infinite Banking Concept—not just sells whole life

Has a long-term stewardship mindset

Offers consistent, responsive, relationship-centered service

And is a true partner for your family’s multigenerational plan

When it comes to building legacy, we don’t take shortcuts. And that includes helping you make decisions based on wisdom—not popularity.

Remember, the best whole life insurance policy for infinite banking isn't determined by a single metric. It's about finding the financial partner that aligns with your family's values and vision - one that will stand as faithfully with your grandchildren as they do with you today.

How to Choose the Best Producer/Team

After you have an idea of what company or companies you’d like to work with, you’ll want to choose an agent or producer to help you set up your policy. In an ideal world, this is a lifelong relationship, so you want to choose someone you trust and get along with. 

If you want to use the Infinite Banking strategy, proceed with caution when you see companies using other terminology. You’ll see various spin-offs of IBC, which are little more than marketing tactics. However, not every one of these companies is going to be advocating for or following the 5 Tenets of IBC. Let’s go over what those tenets are.

The Five Tenets of IBC

[15:20] “Number one, Nelson always said [to] think long-term. And when you link long term, you’re going to make better decisions for you and your family, instead of trying to make short term decisions.”

Number two, don’t be afraid to capitalize. Each and every person has a need for capital, so you should be looking for ways to solve that need. And when you have an opportunity, don’t be afraid to use your capital. 

The third tenet is to be a good steward of your policy. If you take a loan, pay it back in full. While you can get away without doing so, you’re only hurting your own bottom line. 

Tenet four is not to do business with banks. Now, this can take some considerable time, because of our current economy. But eventually, you should have a banking system that allows you to finance your own endeavors. 

Finally, you’ve got to re-think your thinking. Don’t accept everything you know as fact, and be willing to learn and grow. In particular, this applies to what you know about whole life insurance, as many people misunderstand it. 

How Does Your Advisor Support You? 

When choosing an advisor, if you want to do infinite banking, the best thing you can do is find someone who has gone through the Nelson Nash training using the Practitioner Finder. These are going to be advisors who are well-versed in IBC and have the desire to keep growing in their practice and their offerings. 

In addition to the support you’ll get from an IBC-trained advisor, it’s also important to ask them about their practices. Will the advisor do annual reviews? Can you count on them,...

Even if you make lots of money, there's a central flaw in human nature that prevents most people from handling, managing, and keeping it. If you conquer that, there are forces against you. In part 7 of the "Becoming Your Own Banker" series, we'll deep dive into the inner conflict of Parkinson's Law, and the outer battle of taxation ... and show you how to conquer both. 

https://www.youtube.com/watch?v=v1HtuqTI-vA

Join us as we continue the conversation about whole life insurance and the Infinite Banking Concept through Nelson Nash's book, "Becoming Your Own Banker," today!

[power press]

Re-Think Your ThinkingWhat is Parkinson’s Law? Why Your Income Doesn’t MatterHow Does Parkinson’s Law Affect Infinite Banking?Book A Strategy Call

Re-Think Your Thinking

When you think you know it all, you close yourself off to learning. This can be a dangerous path, because there’s a wealth of knowledge in the world, and you might miss out on major, powerful changes. 

This is especially applicable to the financial advice you see and hear out in the world. Don’t take it at face value. It’s important to take responsibility for your thoughts and question everything. Examine it, educate yourself, and get to the truth. This is how you find what works, and make progress.

[6:00] “I think if [people are] really trying to be successful with their families and whatever that means to them… you really need to start by looking inside yourself and taking personal responsibility.”

No one is going to take responsibility for you. It’s up to you to decide how you’re going to process and apply the information you hear, including separating facts from fiction. Your knowledge and your mindset are your human capital, and it’s how you apply that capital to your actions that drives success. 

[7:57] “When anything is seen as not as measurable, not as concrete, not as data-driven, not as analytical, not as rational… not as objective, it seems like it can’t be as important. But the truth is [that] what’s inside of us is really what drives our success or lack of success.”

What is Parkinson’s Law? 

[16:38] “Parkinson’s Law, at its core, states that work expands to meet the time envelope allowed.”

In other words, whatever time you have available, you will naturally fill with work. So if you give someone a 3-day deadline or a 30-day deadline, that person will use the full time to accomplish that objective. Humans can be more efficient or more innovative because they’ll either expand or shrink the scope of a project based on the time allotted. 

What Nelson did is recognize how this law applies to money. When we have money, our expenses rise to meet that. So the more you earn, the more you spend. If you’ve ever gotten a raise and felt like it disappeared, you can thank Parkinson’s law. It’s human to want to spend money. 

Yet, we cannot keep chasing higher incomes in order to buy more things. It’s impossible to get ahead that way, because of Parkinson’s law–you will always find ways to consume if you have that mindset. If you really want to get ahead, you must learn to delay gratification and resist the temptation to spend everything you have. You must live below your means. 

Why Your Income Doesn’t Matter

The thing about Parkinson’s Law is that we are all capable of succumbing to it, regardless of income. Whether you make $20,000 or $200,000, or even beyond that. If you think you can out-earn Parkinson’s Law, then you’ve already adopted that mindset. 

The problem is that when you believe you can just earn more money to make our spending issues disappear, that mindset sticks with you. So if you get a $50,000 raise, your benchmark just changes. Suddenly you find yourself with an extra car payment or a new subscription. It’s human to want to spend, but you've got to overcome that to get ahead. 

As Nelson would often say, a luxury once enjoyed feels like a necessity. It’s hard to give up luxuries once you experience them, which explains why people struggle to cut back on spending. You could live your whole life without air conditioning, but once you have it, you’re loathe to let it go. And this applies to anything. 

How Does Parkinson’s Law Affect Infinite Banking?

The point of Infinite Banking is to save money and store that money in whole life insurance policies. Saving this money takes discipline. Oftentimes, people like the idea of Infinite Banking, but they’re concerned they don’t have the income yet. So they tell themselves they’ll buy insurance once they make more money. 

Unfortunately, because of Parkinson’s Law, these same people have a tendency to make more money, and still not have enough left over to put into a policy. Until you address the thinking behind Parkinson’s Law and work to create better money habits, this will continue to be the case, regardless of your income. 

It takes discipline and work, but once you create that for yourself, you put yourself in a position of capital that can work in your favor for the rest of your life and generations to come. 

[30:07] “We’re not talking about a miserly way of living that makes you a miserable human. I mean, that’s not what we’re talking about. What we are saying is that it’s really important to recognize you don’t have to keep up with the Joneses. You’re not in competition with anyone else—you don’t have to have the best boat and the nicest car and the newest remodel in your kitchen in order to be a successful human that’s worthy and deserving of respect.”

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.

What do the 25,000 self-made $100M families in the US have in common? Discover the secrets to skyrocketing your career and achieving wealth and happiness with our special guest Emmy Sobieski, a CFA, Amazon #1 bestselling author of $100M Careers, and an expert in investing and entrepreneurship.

https://www.youtube.com/live/5nmGpa0LKk8

Emmy's journey from humble beginnings recycling aluminum cans to running the top fund in the world is a testament to the power of embracing a growth mindset and celebrating milestones along the way. Transitioning from a corporate job to a startup isn't an easy feat, and Emmy shares her insights on how to navigate this change with strategy and balance.

We also delve into the world of investing, as Emmy recounts her rapid success and the importance of staying humble in the face of market volatility.

Join us as we explore the concept of positive serendipity and how to create a growth and open mindset to invite opportunities your way. We discuss the importance of taking big risks early in your career and how to "moonshot" your career and life. So if you want to learn the best path to $100M, the biggest mistakes, how long it takes to get to $100M, and how to be happy and wealthy... tune in today!

What’s the Secret to Wealth?Emmy Sobieski’s Path to WealthPivoting from Investor to MentorThe 3 Cs of EntrepreneurshipThe Biggest Career MistakesConnect with Emmy SobieskiAbout Emmy SobieskiBook A Strategy Call

What’s the Secret to Wealth?

Most people would love a secret solution to wealth and abundance. If there was just one thing you could do that made it so simple. However, life rarely works that way. There’s no get-rich-quick scheme. There is, however, a secret. It’s probably not what you’d expect, and it’s that creating the best version of yourself is how you build wealth.

You are your own secret weapon. By investing in your own skills, knowledge, health, and more, you can create wealth for your family for generations. This requires constant growth because you’ll never know everything. When you recognize this fact and commit to lifelong learning, your life can bloom in many ways. 

[4:16] “I talk about it often, where I say you’ve got to moonshot your career. Too many people underestimate their own potential, myself included.”

 By committing to yourself and the continued progress of your career, you can maintain and even build energy for what you do. Once you deplete your energy and excitement for something, it’s incredibly difficult to find that energy again. Emmy shares that she sees people take years or decades to get out of this low-energy funk. So you’ve got to follow your energy and nurture it wherever it takes you. Don’t make the mistake of thinking that once you “arrive” at your goal, there’s nothing left for you. 

Emmy Sobieski’s Path to Wealth

For Emmy, there was no decision about her career trajectory–things seemed to fall into place naturally. When she was a teenager, she collected aluminum soda cans to recycle them for money. By 16, she had saved up $1,800, and her dad helped her to open her first investment account. 

Her dad gave her four companies to choose from, so Emmy chose to invest in United Artists, which was a movie theatre that sold more than just popcorn. This decision helped her to quadruple her money. So her dad gave her four more companies to choose from, and Emmy put her money into a company owned by her dad’s friend. This quadrupled her money again. Emmy’s investments were so successful that she ended up with half a million dollars in her 20s. 

In her mid-20s, she lost this money and had to build it back up from scratch. Fortunately, she was successful in that endeavor, too. In 6 months she went from -$30k to $90k, while in grad school. Her friend suggested that people would pay her for that, and in 5 years, Emmy was running the number-one fund in the world. 

Pivoting from Investor to Mentor

There are 25,000 self-made $100 million families in the US. This is the basis of Emmy’s book, which helps people find the path and follow it. One model for success (and in Emmy’s estimation, the best path to $100M) is to follow the 3 Bs–you break into an industry, build equity, and break out to start your own thing. Emily went through this when she broke into tech after leaving the investing world. She broke into this new industry with enthusiasm to grow, and after being told she was too senior to work with blockchain, decided to begin her own coaching firm. 

Around 2008, Emmy began coaching students and helping them understand their path to Wall Street and beyond. Often, these students were from blue-collar backgrounds, attending community college, or they were first-generation college students. Now, many of them are hedge fund managers, entrepreneurs, and multi-millionaires themselves. 

Emmy also began to write down everything she knew about investing, not knowing if it would be book material or not, but feeling compelled to get that information on paper. 

[32:30] “I believe that people are incredibly adaptable, and again that their potential is far higher than they ever give themselves credit for.”

The 3 Cs of Entrepreneurship

As Emmy coaches clients, what she doesn’t want is to build miserable rich people. Her goal is to help people make money and be able to enjoy life–this means having purpose, having balance, and having time and money freedom.

In order to be both happy and wealthy, Emmy advises you to follow the “3 Cs method.”

[38:40] “Do you have control over your calendar, your confidence, and your capital? Because too many people get rich, then all of a sudden they’ve got houses all over the place and they become kind of a servant to their houses.”

In other words, people who become wealthy in a relatively short amount of time tend to spend it and lose control of their capital very quickly. Having lots of money is one thing, having control of your capital is freedom.

When you control your calendar, you have the ability to do things you want to do, with the people you want to do it with. This is important for entrepreneurs because when you create your own schedule, it’s all too easy to work too much. 

[39:12] “The confidence really has to do with your relationship with money… Because if you don’t have a growth mindset, and you still think it could run out at any moment, you know, you have this fear all of the time, then you’re not in control. You’re not in control of your own confidence and your own ego.”

The Biggest Career Mistakes

The number one mistake entrepreneurs make, in Emmy’s eyes, is that they do not moonshot their careers. In other words, people underestimate their value and their capacity, so instead of shooting for the moon, they shoot for something smaller. 

The second mistake is not taking enough big risks early. This doesn’t mean blind risks, though, you’ve still got to be smart and calculated. Doing this early in your career when you can still handle the risk is crucial. When you’re more established in your career, you may find yourself with fewer opportunities for risk-taking, or less tolerance for risk. 

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About Emmy Sobieski

Emmy Sobieski—CFA, CBP—combines 25 years of experience investing in public and private companies. She has experience leading, scaling, and advising tech startups. Her book, $100M Careers: The 5 Fastest Paths to Wealth Beyond Your Wildest Dreams (2022), helped her to become an Amazon #1 bestselling author. Emmy is also a fractional Chief Operating Officer of Competitive Storytelling, which helps world-class founders share ideas and change the world. Emmy co-ran the Nicholas Applegate Global Technology Fund, the #1 ranked fund globally in 1999, up over 492% (according to Lipper). She has worked in executive, founder, and advisory roles at Web3, Fintech, Green Tech, Private Equity, and Hedge Fund startups.

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