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

Today, we’re talking with Andrew Weinhaus about why you need an estate plan.  He's an attorney who has worked in estate planning for 30 years. That means he knows it like the back of his hand. So, you get the tremendous value of hearing about estate planning in a way that's relatable, plain and simple!

https://www.youtube.com/watch?v=xvoTfp63rT4

Do you wonder what happens to all of your stuff when you die?  Have you heard of estate planning, but are not really sure what it is and whether it’s for you? 

No need to share your answers, but ... pssst ... this episode is for you!  Here’s a sneak peek into estate planning from a distance. It's like browsing, but without the annoying sales clerk asking if you’ve found everything you didn’t even know what you were looking for in the first place. 

You can dip your toe in to find out if it’s really as scary and overwhelming as you thought. I promise, you’ll feel less out of place and more at home in the estate planning conversation. So, whenever and however you decide to move ahead, you'll feel better about those uncomfortable conversations.

If you are concerned about what happens to your legacy, you’re certainly not alone. What’s more, you don’t need a million-dollar estate to start thinking about it. This episode explores why planning ahead is incredibly important for every family in America - not just the wealthy  and how to approach the process with extreme confidence.

This conversation will help you make sense of the basics. That means you’ll know the why and the end goal. Those two things will automatically vacuum out the ambiguity in the process.

So if you want to understand what an estate plan is and does, see how it's relevant to your life to do the long-term planning, and differentiate whether this is an important thing to take action on so you can feel the benefit of planning before you embark on the journey, tune in now!

In this episode on estate planning, you’ll find out:

The two main reasons you need an estate plan: if you can't make decisions, and if you die.

The four reasons you want to avoid probate: cost, time-intensity, publicity, and creditor rights.

Why you might want to pay for your parents' estate planning.

The basic components of an estate plan and what they do: a medical directive, a power of attorney, a revocable living trust, and a pour-over will.

The cost of an estate plan is often much less than the cost of probate. The difference is whether you pay a fixed, known cost now, with an attorney who is a trusted advisor, or a potentially much higher cost later with an attorney you can't choose.

Concerns with real estate, businesses, and investments without an estate plan.

How life insurance is the perfect equalizer to allow you to transfer family assets without having to liquidate.

Why titling your assets correctly is one of the most critical steps of estate planning that most people miss.

Why estate planning spells out exactly what you want to happen.

How to plan for the care and financial needs of minor children.

Why your estate plan can never be perfect and how to get it done anyway.

Why Don’t More People Talk About Estate Planning?

Estate planning may sound slightly intimidating, with many people assuming it’s something only the wealthy need or that it involves complicated legal jargon and expensive lawyers. The reality is different, however: estate planning is about protecting your family, your choices, and your peace of mind, not just your money.

Another reason people put it off is the fear of cost or discomfort around discussing the uncomfortable subject of death. While it’s easy to push the topic aside when it feels far away, without a plan, the people you care about are left to sort things out on their own. 

The problem is that in every sense of the word, that can be far more costly.

In short, estate planning is simply an act of care and well-deserved diligence. It ensures that what you have built, whether big or small, goes where you want it to go, without unnecessary stress or confusion for your loved ones.

Why Everyone Needs an Estate Plan

Regardless of your role in life - be it a parent, a business owner, or just someone who cares about what happens to your assets - you really need an estate plan. Having one is less about how much you have, but how well it’s protected.

The simple truth is that life throws the occasional curveballs, including (but not limited to) incapacity, unexpected death, and family emergencies. An estate plan provides written instructions so that someone you trust can step in when needed, without causing chaos or confusion.

It also shields your family from the four major threats: long, expensive probate proceedings, unnecessary legal fees, months (or years) of delays, and even creditor claims against your estate. A solid plan means more of what you’ve built actually reaches your family quickly, privately, and with far less stress.

Core Components of an Estate Plan

When most people hear the words estate plan, they immediately think of a will, or something similar, but that’s just the start. As estate planning attorney Andrew Weinhaus will attest, a well-structured plan usually includes a combination of tools that work together to carry out your wishes.

A basic will lets you name heirs and guardians. A pour-over will catch any leftover assets and route them into your trust. Trusts themselves can be either revocable (changeable) or irrevocable (locked in, but more protective).

Powers of attorney and medical directives make sure someone you trust can make decisions if you are unable to. Proper asset titling and beneficiary designations enable assets to pass directly to heirs without the need for court involvement.

And whole life insurance can be a smart way to equalize inheritances or cover taxes, especially if much of your estate is tied up in business or property.

Where Estate Planning Fits into Your Cashflow Creation System

Encircling your family and assets with a bulletproof estate plan will maximize your peace of mind.  But it’s just one small step of a greater journey.  

That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.  

The first step is keeping more of the money you make.  This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access them as an emergency/opportunity fund.  This step frees up and increases your cash flow, so you have more to save and consequently, more to invest.

Then, you’ll protect your money with savings, privatized banking and legal protection.  This is where estate planning fits in.  You’ll know that no matter what happens to you, your wishes will be carried out, your assets will remain intact, and your wisdom will empower generations after you.

It also works in tandem with other protect-stage tools like whole life insurance and trusts, ensuring your financial architecture doesn’t collapse under pressure. For a more comprehensive look into one of those tools, see our guide to Infinite Banking Explained

Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.

Common Estate Planning Strategies & Pitfalls

Once your estate plan is in motion, the next step is using strategies that maximise control, minimise tax exposure, and keep your wishes firmly respected and intact.

Some of the more advanced tools include grantor trusts, which allow assets to grow outside of your estate while maintaining income tax responsibility. Family limited partnerships are another strategy for managing and transferring family-owned businesses or real estate. And irrevocable life insurance trusts can remove the death benefit from your taxable estate, while still protecting your heirs.

But even the best-designed plan can be undermined by small missteps.

One common pitfall is failing to retitle assets in the name of your trust, thereby leaving them highly exposed to probate. Others include outdated beneficiary designations or failing to update your plan after major life changes. 

In any event, estate planning isn’t a one-and-done task. It’s a living strategy that needs to be reviewed over time.

When & How to Start Your Estate Planning Process

In short, there is no perfect age (or net worth) for starting your estate plan. 

Whether you’ve had kids, bought a home, launched a business, or just want more control over what happens, you almost certainly need one.

The process is relatively simple. Start by listing your assets and liabilities, before choosing guardians for minor children and trustees or executors you trust. Then, work with a qualified attorney to draft your documents,  including your will, powers of attorney, and any trusts. 

Finally, set a reminder to review your plan regularly, especially after major life changes.

You may need to modify it over time, but the most important thing is to create a clear plan that reflects your wishes and protects the people you care about. With the right attorney, your estate planning strategy should be straightforward to implement, legally sound, and tailored to your unique circumstances.

Who is Estate Planning Attorney Andrew Weinhaus?

Estate planning attorney Andrew Weinhaus is the managing member of The Law Office of Andrew Weinhaus, LLC, a Clayton, Missouri-based law firm. His practice focuses exclusively on estate planning, tax strategies, and business succession for closely-held entities.

Mr. Weinhaus is a member of the Missouri Bar Association, serving on the adjunct faculty for Washington University’s graduate tax law program, teaching a course on advanced deferred compensation.

Mr. Weinhaus is a graduate of Washington University in Saint Louis, Missouri....

Do you want extraordinary relationships with your kids?  Are you longing to build a family that’s strong and enduring, living life on purpose? Building family wealth is so much more than being a family with a lot of money.

https://www.youtube.com/watch?v=Bb-QZAHc-uA

So, if you aspire to do the most for your family, start with the building blocks. Family wealth is strong family relationships that start with flourishing individuals, combined with practicing the fundamentals of wealth creation. To get that, you have to know personally how you best provide value and contribute to others, and then instill that awareness and way of life into your kids. Those might seem like tall orders, but it is possible, and we'll show you how.

Here to discuss the principles that drive family wealth is a family who is right in the middle of doing this - extraordinarily. In this episode, we’re talking with Jon and Missy Butcher, creators of LifeBook, who are living out their ideal life, by design – and we’re discussing how to build exceptional family wealth.

So if you want to create the most positive and fulfilling family relationships, develop family strength that lasts for generations, and build family wealth that's more than money so you can carve out your family legacy, tune in now!

In This Episode on Building Family Wealth, You'll Discover:

Why core family values are so important for your home, and the four questions you need to ask yourself to discover them.

The fundamental truth of all wealth creation.

The difference between wealth and money.

The three core values of this exceptional family.

How to help your kids make money.

How to transform your own life, so you can transform your family relationships ... and grow family wealth.

Why consciousness is a process of self-discovery and self-creation.

Where Building Family Wealth Fits In The Bigger Picture

Building family wealth and creating a legacy is the capstone of a life well-lived.  It’s the end goal of a life and business you love, and the greatest mission of our lives.  But we need an entire financial system to support our ability to do the most good.

That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.  

The first step is keeping more of the money you make.  This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund.  This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.

Then, you’ll protect your money with privatized banking, insurance, and legal protection.  

Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.

Who Are Jon and Missy Butcher?

Jon and Missy Butcher created a life most people might call impossible. They have founded 19 impact-driven companies and philanthropic organizations together. They are financially free, enjoy a whirlwind romance, even after decades of marriage, and live in multiple countries a year, including the dream home they are building on a remote Hawaiian island. And they’re grandparents in their fifties - who look and feel a decade or two younger.

Every single aspect of Jon and Missy’s life appears to defy society’s expectations: not because they’re smarter, more gifted, or luckier than anyone else - but because they designed it that way.

Learn more about Jon and Missy's backstory of personal transformation here: LifeBook: Creating An Extraordinary Life.

When Jon and Missy’s life transformed dramatically, their friends and family started asking them for their secret. And so Lifebook was born: first as a series of private retreats, and ultimately as a methodology that anyone can now harness to envision, plan, and achieve their greatest lives.

Today, Jon and Missy’s mission is to spread Lifebook to at least one million people worldwide. And to keep reaching for the highest possible quality of life, while empowering others to do the same.

Learn More About Lifebook

Find out more about the 6-week Lifebook online self-study course today! When you do, you'll find out exactly how to design your ideal life in every category.

... And, it's free, with accountability.

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:

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

Financial Strategy Call – Discover how Privatized Banking, alternative investments, tax-mitigation, 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.

Not all whole life policies are designed equally.  Some that show up better on an illustration actually have a higher risk.   Rodney Mogen came back on the show to continue the conversation about life insurance agent commission and whole life policy splits.  

https://www.youtube.com/watch?v=I4lq1Ltep2s

We address the “Fear, Uncertainty, and Doubt” in the IBC world around policy splits. We answer questions about illustrations, changing dividends, agent commissions, effects on the death benefit, and policy tax status.

Check out the first conversation here: 10/90 Premium Split & Blended PUA Rider Risks, with Rodney Mogen

Life Insurance Agent Commission

Why are we talking about life insurance agent commission? Because some people think that agents design policies based on how they are compensated. There are agents telling people that a 10/90 premium is the only one right way to design policies. According to them, anything else is just trying to earn a higher commission.

We design policies based on the client's unique situation, versus using a cookie-cutter approach and designing all polices the same. It's important to have an abundance mindset when looking for the best life insurance companies to work with. We believe compensation is a good thing and should be based on the amount of value you receive.

If someone bases their entire agency on the 10/90 split, then they are running their business based on volume. This approach is very similar to Walmart. There is absolutely nothing wrong with serving as many people as possible. The question is, how much value and time do you think you will get from that advisor?

Your agent's commission should be the last thing in the agent's mind and your mind when putting individualized strategies and recommendations in place.

Get Started with Privatized Banking

There is not a one-size-fits all policy design for everyone.

If you would like to find out exactly what policy will best help you accomplish your goals, book a call with our advisor team

We'll get to know you, learn your objectives, and consider your complete financial picture before recommending strategies for your unique situation.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

https://www.youtube.com/watch?v=gB_2RGtp_ts

Will the work you do create a foundation for your kids and grandkids to prosper? Then how do you create long-term complete family wealth that does the most good for as long as possible?  How do you make sure the money you make, the business you build, and the real estate and investments you acquire do more than just benefit you during your lifetime?   How do you create rich kids, grandkids, and great-grandkids? To answer these questions, we're discussing creating generational family wealth, with Keith Whitaker.  Through Wise Counsel Research, he helps families grow into multi-generational enterprises, thriving together, preserving and growing family wealth.

Where Complete Family Wealth Fits In The Bigger PictureComplete Family Wealth Conversation Highlights from Keith WhitakerAvoiding the Pitfalls of Leaving an InheritanceThe Role of ExcellenceThe Role of CommunicationTrustsHow to Communicate The Meaning of Your LegacyFirst Generation MindsetThe Rising GenerationWho Is Keith Whitaker?Complete Family Wealth Links and MentionsBook A Strategy Call

In this episode with Keith Whitaker, you'll discover:

Why wealth is more than money and how to grow all five types of capital.

How to develop character so that generations after you will be wealth builders.

The three keys of prosperous families who pass on multi-generational legacies of more than money.

Easy, doable ways to write down and communicate the purpose of your trust.

Why it's essential to have a first-generation mindset.

The crucial role of the rising generation to prevent the crumbling and disintegration of family wealth.

How to develop your children's character - the habit of choosing wisely.

Why individual flourishing is the crux of complete family wealth.

So if you want to create strong and successful families, raise children to be stewards, and know that your money will do the greatest good long after you're gone so you can empower future generations with wealth and wisdom, tune in now!

Where Complete Family Wealth Fits In The Bigger Picture

Building family wealth and creating a legacy is the capstone of a life well-lived.  It’s the end goal of a life and business you love, and the greatest mission of our lives.  But we need an entire financial system to support our ability to do the most good.

That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.  

The first step is keeping more of the money you make.  This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund.  This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.

Then, you’ll protect your money with privatized banking, insurance, and legal protection.  

Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.

Complete Family Wealth Conversation Highlights from Keith Whitaker

Avoiding the Pitfalls of Leaving an Inheritance

[3:57] When we talk with family members and family leaders, we ask them what's really on your mind? What's keeping you up at night? You eventually get to the concern, what's this money going to do to my grandchildren and generations after that? Is it going to ruin them? And that's exactly the concern that we try to address.

The Role of Excellence

[5:41] Socrates said, "Wealth doesn't make a person or a city great and powerful and virtuous and excellent. It's excellence or virtue that makes an individual or a city wealthy."

[5:53] In other words, no matter how big your bank account, if you don't have excellence of mind and character, then, in fact, you're going to be poor.

[11:11] Families succeed in passing on complete family wealth, not just money, but also excellence, really do communicate. They communicate about their financial plans, estate plans, and their giving.

The Role of Communication

[11:36] If you're making gifts to your children or grandchildren without communicating about them, behind the scenes or with very little discussion, you're not really making a gift, you're making what we call a transfer. Even worse, these gifts are going to become meteors that blast into people's lives, without any preparation. That can be extremely destructive to young adults or even to older adults. So, people who do this well lay a foundation by developing character and financial literacy in their children.

[12:16] Look at the gift from the eyes of the recipient and ask, is this person ready to receive well? Is this person prepared to integrate the gift into his or her life? And if not, what can I do to help them develop that capacity?

[12:51] Silence is counterproductive. It's a big opportunity cost that parents incur by not talking. It can build up the anger, resentment, and confusion in children who eventually receive these gifts.

Trusts

[13:18] ... trusts are the number one vehicle for holding wealth and transferring wealth for lots of good reasons. But at the same time, trusts can be something that make it harder to do that well because family members look at them as just legal things, complicated documents they can't even read and understand. So, as a result, many beneficiaries grow up feeling controlled by trustees and fundamentally mistrusted by the existence of trusts.

[14:17] The answer to this problem is not to get rid of trusts, but to focus on making trusts human relationships.

[14:51] If the trust creator or creators are still alive, thoughtfully and clearly lay out your wishes for the trust. What kind of impact do you want to have in people's lives? Beyond the asset protection or estate tax efficiency, what do you want this trust to do in the lives of the beneficiaries?

[21:11] This trust is a gift of love. Its purpose is to enhance the lives of the beneficiaries.

How to Communicate The Meaning of Your Legacy

[22:19] You can write down letters of wishes or intent. It doesn't need to be a book. It can be a one-page document of five points or so. Another strategy I've seen people use is to write out, sometimes with the help of somebody interviewing them or recording them, something of their own life story. Where did this money come from? How did we acquire it? What were some of the disasters along the way that we had to overcome? They get across the values behind the family history and the growth of the wealth so that it isn't just fun stuff, nice vacations, nice vehicles, nice houses, and nice schools. It's a story of hard work of adversity of overcoming adversity of working with others, appreciating others, and being the recipient of others' kindness and help along the way.

First Generation Mindset

[36:44] Wealth in a family can have the effect of making everybody other than the wealth creator feel lesser or unimportant so that the whole focus becomes the wealth creator or the wealth creator's generation, and everything else is an afterthought. Having a first-generation mindset in your life means that your choices matter. So take them seriously.

The Rising Generation

[38:12] We use this term of rising generation rather than the next generation, saying that every generation has its room to rise, particularly for younger family members in a family with significant wealth or business. Rising means facing their own struggles, finding their own work, forging their own healthy relationships, and learning to communicate in a responsible way. That means not only listening, but also having and finding your voice. For the older or the controlling generation, this means making some room for the voice of rising generation family members.

[38:56] we see so often great respect and an almost sort of worship of the wealth creator in a family can cause everyone else to feel that I don't really have anything to say, or I don't really have anything worthwhile. Nobody really wants to hear from me anyway, they want to talk about dad or grandpa. So a silence falls on the rest of the family. And what happens if that silence continues from one generation to the next is that people feel that it's not really important for me to learn. It's not important for me to strive, I don't really matter. Eventually, then people deplete both the qualitative capital of the family, their skills, knowledge, abilities, and the quantitative capital of the family.

[39:49] We have seen the silence of the rising generation to be the absolutely crucial cause of the failure of families to continue from one generation to the next in successfully stewarding their wealth.

Who Is Keith Whitaker?

Keith Whitaker is President of Wise Counsel Research. He has consulted for many years with leaders of enterprising families, helping them plan succession, develop next-generation talent, and communicate around estate planning. With a background in education and philanthropy, he enables family leaders to understand their values and goals better, as well as to have a positive impact on the world around them. Family Wealth Report named Keith the 2015 "outstanding contributor to wealth management thought-leadership.

Keith has served as a Managing Director at Wells Fargo Family Wealth, an adjunct professor of management at Vanderbilt University, an adjunct assistant professor of philosophy at Boston College, and a director of a private foundation. He was also a special assistant to the President of Boston University.

Keith’s writings and commentary have appeared in The Wall Street Journal, The New York Times, The Financial Times, Claremont Review of Books, and Philanthropy Magazine. His Wealth and the Will of God appeared in 2010 from Indiana University Press and he is co-author of The Cycle of the Gift, The Voice of the Rising Generation, Family Trusts,...

https://www.youtube.com/watch?v=p2xDUahEtWc

Do you want to invest in real estate?  Do you want it to feel effortless and productive, without getting slowed down, veering off course, and stuck by number-crunching and over-analyzing? In this episode, we discuss real estate investing for women with Monick Halm, the creator of Real Estate Investor Goddesses.

So if you want to be empowered to own your financial future, invest in real estate, and use your own unique gifts as an investor, and not try to invest like someone else, so you can build time and money freedom … tune in now!

In This Episode with Monick Halm About Real Estate Investing, Find Out:

* Why women should consider real estate investing as a pathway to financial security and independence.* Why operating from the feminine in real estate investing helps women to be far more successful.* Why knowing different investing strategies radically empowers you to robocharge your success.

Who Is Monique Halm?

Monick Halm is an educator and advocate for women to create passive income streams through real estate investing.  

Her mission is to assist 1 million women to achieve financial freedom through real estate.  

She is the founder of Real Estate Investor Goddesses, and is herself a real estate investor and syndicator with over 14 years of real estate investing experience in multi-family, mobile home and RV parks, flipping, commercial, vacation rentals, and ground-up development. 

Together with her husband and her investors, she owns over 1300 rental units across 6 states.

She is the #1 bestselling author of The Real Estate Investor Goddess Handbook and Wealth for Women: Conversations with the Team That Creates the Dream, and host of the Real Estate Investor Goddesses Podcast.  

She is also a Real Estate Strategy Mentor, keynote speaker, recovering attorney, certified interior designer, Feng Shui expert, avid world traveler, wife, and mother of three amazing kids.

Learn More About Monick Halm and Real Estate Investor Goddesses

* Visit Real Estate Investor Goddesses to find* Real Estate Investing Guide From $1 to $1 Million* How to Get Started in Real Estate Investing Even As A Busy Professional Woman Webinar* The Real Estate Investor Goddesses Podcast* The Real Estate Investor Goddesses Investor Club* The Virtual Wealth Through Real Estate Event* The Real Estate Investor Goddess Handbook* Wealth for Women: Conversations with the Team that Creates the Dream

Want to Boost Investment Returns with Privatized Banking?

Find out the exact Privatized Banking strategies our clients are using to build investment capital, create financial stability, boost investment returns, forge a legacy, and design your financial freedom.

To discuss your life insurance strategy, or implement Infinite Banking,

https://www.youtube.com/watch?v=p2xDUahEtWc

Do you want to invest in real estate?  Do you want it to feel effortless and productive, without getting slowed down, veering off course, and stuck by number-crunching and over-analyzing? In this episode, we discuss real estate investing for women with Monick Halm, the creator of Real Estate Investor Goddesses.

So if you want to be empowered to own your financial future, invest in real estate, and use your own unique gifts as an investor, and not try to invest like someone else, so you can build time and money freedom … tune in now!

In This Episode with Monick Halm About Real Estate Investing, Find Out:

Why women should consider real estate investing as a pathway to financial security and independence.Why operating from the feminine in real estate investing helps women to be far more successful.Why knowing different investing strategies radically empowers you to robocharge your success.

Who Is Monique Halm?

Monick Halm is an educator and advocate for women to create passive income streams through real estate investing.  

Her mission is to assist 1 million women to achieve financial freedom through real estate.  

She is the founder of Real Estate Investor Goddesses, and is herself a real estate investor and syndicator with over 14 years of real estate investing experience in multi-family, mobile home and RV parks, flipping, commercial, vacation rentals, and ground-up development. 

Together with her husband and her investors, she owns over 1300 rental units across 6 states.

She is the #1 bestselling author of The Real Estate Investor Goddess Handbook and Wealth for Women: Conversations with the Team That Creates the Dream, and host of the Real Estate Investor Goddesses Podcast.  

She is also a Real Estate Strategy Mentor, keynote speaker, recovering attorney, certified interior designer, Feng Shui expert, avid world traveler, wife, and mother of three amazing kids.

Learn More About Monick Halm and Real Estate Investor Goddesses

Visit Real Estate Investor Goddesses to findReal Estate Investing Guide From $1 to $1 MillionHow to Get Started in Real Estate Investing Even As A Busy Professional Woman WebinarThe Real Estate Investor Goddesses PodcastThe Real Estate Investor Goddesses Investor ClubThe Virtual Wealth Through Real Estate EventThe Real Estate Investor Goddess HandbookWealth for Women: Conversations with the Team that Creates the Dream

Want to Boost Investment Returns with Privatized Banking?

Find out the exact Privatized Banking strategies our clients are using to build investment capital, create financial stability, boost investment returns, forge a legacy, and design your financial freedom.

To discuss your life insurance strategy, or implement Infinite Banking, alternative investments, or passive cash flow strategies to keep more of the money you make, book your strategy call with The Money Advantage advisors today.

Thanks for Tuning In!

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Thanks for listening!

Did you know there’s a secret hiding in plain sight that average rates of return will never tell you? In this episode, we’ll discuss the Sequence of Returns and the risk they pose to your future income. Then, we’ll show you exactly how to minimize the risk. We’ll also look at how to mitigate sequence of returns risk in a simple, practical way so you aren’t relying on luck or timing to secure long-term income.

https://www.youtube.com/watch?v=cq72TYq1zK4

So if you want to get predictable income from an unpredictable investment portfolio, NOT run out of money, and see exactly why you should supplement your investments with non-correlated assets … all so you can plan ahead and not be stressed with figuring out retirement income when it’s too late, tune in now!

To understand the giant risk posed by the sequence of returns, let's lay a quick foundation.

Table of contentsWhere Does Investing Fit in the Cash Flow System?The Lie in Average Rates of ReturnThe Order of Returns MattersTaking Income After Losses Is A Giant MistakeWhy Sequence of Returns is a RiskMarket Volatility and TimingBehavioral FactorsNon-Correlated Assets to the Rescue!What Spending Strategy Could Eliminate Sequence of Return Risk?So Here's How to Minimize Sequence of Return RiskGet Whole Life Insurance TodayFAQsWhat is the sequence of returns, and why does it matter?Why is taking income during down years such a problem?What spending strategy could eliminate the sequence of returns risk?How do you know when to switch between different income sources?What’s the simplest way to understand how to mitigate the sequence of returns risk?

Where Does Investing Fit in the Cash Flow System?

Investing is just one step in the path to time and money freedom.

That’s why we have created the 3-step Business Owner’s Cash Flow System.  It’s your roadmap to take you from just surviving to a life of significance, purpose, and financial freedom.

The first step is keeping more of the money you make by fixing money leaks, becoming more efficient, and profitable.  Then, you’ll protect your money with insurance and legal protection, and Privatized Banking.

Finally, you’ll put your money to work, increasing your income with cash-flowing assets.

The Lie in Average Rates of Return

Investment performance is often measured by the average rate of return.

What is an average? It's simply all the returns over a period, divided by the number of years.

But the average rate of return often doesn't even come close to mapping onto our actual experience. In fact, positive averages don't even mean you'll come out ahead on the money you put in.

Why?

In this article, I highlight the disparity between the average vs. real rate of return.

Here's the main reason that averages don't even come close to telling the whole story:

Negatives have a much greater impact on your account balance than corresponding positive returns. This is one of the key reasons the sequence of returns matters so much, because the timing of losses heavily influences your real experience—even when the averages look good.

For instance, if you lose 20% on $100K, you would have $80K. To recover your loss, you wouldn't just need a 20% gain. That would only get you to $96K. It would take a 25% gain, a value greater than the percentage of loss, to bring your balance back to $100K.

With that out of the way, there's another deception that lies in average returns.

Negative 20%, plus a positive 25% lands you at a total return of 5%. Divide that by 2 years, and you get an average of 2.5% return per year. But your experience gave you a 0% actual return over those two years.

So, saying you had a 2.5% average return gives a misleading impression that you're increasing your account balance with growth.

But it gets worse.

The Order of Returns Matters

Not only do losses make a huge impact on account value, but so does their timing.

That's because early losses shrink your portfolio and make it very difficult to recover.

Late losses don't do as much damage. Instead, they skim a little off the top of a more substantial account.

Taking Income After Losses Is A Giant Mistake

If you're using your investment account for income after a year of losses, you further depress account values.

Imagine you were taking 4% from your investment account per year as income.

If your returns are -20%, your 4% withdrawal amplifies the negative to a 24% loss.

In fact, you may need to increase your withdrawal percentage to get sufficient income, further worsening the outlook and handicapping your future performance.

To see exactly how these risks affect you, let's compare the outcomes of two identical investment portfolios of $500K, with an annual withdrawal of $20,000 per year, increased by 2.5% for inflation.

We’ll use the actual performance of the S&P 500 for the year 2000 through 2015. The only difference between the two portfolios is that we’ll reverse the sequence of the returns by flipping the order. This comparison shows just how destructive the sequence of returns can be when withdrawals line up with early losses instead of later ones.

The first portfolio (Jane) limps through really rough negative returns for the first three years, and then has relatively smooth sailing for the last twelve.

The second portfolio (Jim) gets the smooth sailing for the first twelve years, and then gets pummeled with the negative returns at the end.

Again, the starting balance is the same, the withdrawals are equal, and the returns are the same. The only difference in these examples is the sequence of the returns.

Image from: Lafayette Life Insurance Company

The difference is striking.

Early losses give Jane an ending balance of $74,300, while late losses give Jim an ending balance of $344,290.

Jane has about $270K less money than Jim.

The only reason? She got dealt an unfortunate order of the same exact cards.

Why Sequence of Returns is a Risk

Sequence of returns uncovers two enormous risks: the structure of the market itself and the way people respond to it. You can’t control the order of future returns, and you can’t predict whether a down year will hit at the beginning, the middle, or the end of your retirement. That uncertainty becomes dangerous when you’re relying on that investment account for ongoing income.

Market Volatility and Timing

Again, market volatility isn’t the real danger - timing is. Losses that occur early in retirement have a much deeper impact because your account hasn’t had time to grow through compounding. When a down year hits at the beginning, any withdrawal accelerates the damage. Even a modest income draw amplifies the effect, because you’re selling more shares after a decline just to meet spending needs. 

This is why two portfolios with the same average return can have drastically different outcomes depending solely on the order of returns.

Behavioral Factors

Another layer of risk is human behavior. When markets dip, most people become more cautious, anxious, or reactive. This emotional pressure leads to panic selling, reducing equity exposure at exactly the wrong time, or withdrawing extra funds out of fear. These decisions compound losses and make it far harder for the portfolio to recover. Behavioral factors don’t just influence performance—they multiply the downside of a bad sequence of returns by turning temporary market movements into long-term setbacks.

So, how do you minimize the risk that taking income when your investment experiences a loss will run your investment into the ground?

Non-Correlated Assets to the Rescue!

What if you had another source of income that you could use in years your investment suffered a loss?

If you hit the pause button on withdrawing income after a loss, you would give your investment time to rest, instead of hitting the horse while it's already down.

Then, you could resume taking income every year you had positive returns.

The improvement is tremendous.

Dr. Wade Pfau, Professor of Retirement Income at The American College, advocates exactly that.

In his white paper: Integrating Whole Life Insurance into Retirement Income Planning, Pfau gives an academic and compelling case for how to deflate sequence of return risk. He says that you should use non-correlated assets as a buffer against the sequence of return risk.

This strategy will preserve your investment portfolio and minimize the sequence of return risk, giving you more income during later years.

Using the same example above, here's how Jane's portfolio with early losses would perform if she suspended her income from the investment every year following a loss.

Image from: Lafayette Life Insurance Company

By taking income from another source instead of the investment portfolio in just four out of the fifteen years, about $88K in total, her ending balance increased to $249,974.

That means that she gained $175K more in her investment account by giving up $88K of income during down years.

What Spending Strategy Could Eliminate Sequence of Return Risk?

When people ask “what spending strategy could eliminate sequence of return risk”, they are really asking how to avoid pulling income from an account that has just taken a hit. Because the danger isn’t the market itself, it’s withdrawing at the wrong time. A spending strategy that works around market losses can dramatically reduce exposure to the ups and downs of the sequence of returns.

The simplest way to approach this is to avoid taking income from an account in the same year (or years) it suffers a decline. Instead, you draw from a stable, non-market asset: something that didn’t drop in value. This creates a buffer, of sorts, giving your investments time to recover before you resume taking income. 

In practice, this is one of the most effective ways to understand how to mitig

If you want to create a legacy of wealth, the starting point is a strong culture of family values. That's because having the greatest impact and doing the most for your children hinge on their character and self-leadership. And their character and self-leadership depend on yours - your example, your relationship, and your communication.

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

So how do you model and teach the values necessary for your children to be successful? How do you build bonds that strengthen and unify your family over generations? Then, how can you fortify against the torrent of evils like regret, pain, and resentment that rip families apart? What can you do to prevent everything you've spent your life building from being crumbled away or used up?

If you want to strengthen and anchor your family, you need a value system that stands through generations.

Today, we're talking about the importance of family values, instilling those in kids, posting your family values at home on the wall, and spending more serious time on the topic as a family unit.

Richard Wilson, CEO of the Family Office Club, is coming back to join us for this conversation. Because of his work with ultra-high net worth families, he sees what works and what breaks when it comes to family wealth. You'll see exactly why family values are pivotal to your long-term impact.

You can find his first interview, The Family Office Model: Investing Like the Wealthy, here.

In This Show About Family Values, You'll Discover:

Why family values are more important than family wealth.

Why family values are central to living well and creating the greatest impact and legacy.

How writing down and posting your family values improves family culture.

The surprising trick to remembering your values and brainwashing yourself so you can become the best version of you.

How individual, marital, family, and business values are connected.

The personal family values list of a leader in family wealth to get you thinking about your own values.

In This Show About Family Values, You'll Discover:Where Family Values Fit In The Bigger PictureAbout Richard WilsonLinks and MentionsBook A Strategy Call

Where Family Values Fit In The Bigger Picture

Family values are a part of your family guidance system when building family wealth. Creating and leaving a legacy is the capstone of a life well-lived.  It’s the end goal of a life and business you love, and the greatest mission of our lives.  But we need an entire financial system to support our ability to do the most good.

That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.  

The first step is keeping more of the money you make.  This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund.  This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest.

Then, you’ll protect your money with privatized banking, insurance, and legal protection.  

Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.

About Richard Wilson

Richard is a third-generation Eagle Scout, husband and father of 3 living on the island of Key Biscayne, near Miami, Florida. He is the CEO & Founder of the Family Office Club, the #1 largest association of over 2,000 registered ultra-wealthy families and their family offices. Richard also represents 77 investors with an average net worth of $22M through his RIA Centimillionaire Advisors, LLC and the PrivateEquity.com investor portal – where he helps clients access top screened direct investments coming through his investor club.

Richard has written three #1 bestseller family office books on Single Family Offices, How to Start a Family Office, and Centimillionaires ($100M+ net worth families). The Family Office Club has the most-watched YouTube Channel in the family office industry and most visited website. Richard has an undergraduate degree in business, an M.B.A., and has studied post-masters psychology through Harvard University’s ALM Division.

Links and Mentions

FamilyOffices.com

PrivateEquity.com

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.

https://www.youtube.com/watch?v=uvUp3vuKYjA

Do you want to leave a legacy with an estate plan that transfers wealth and empowers the next generation? Find someone who is helping others do it successfully. And that means tailoring a customized, bespoke plan specifically to your family.

Today, we’re talking with highly recognized estate planning attorney, Andrew Howell, about the principles and wisdom he’s distilled from working with ultra-high net worth families and business owners.

If you want to know how to entrust wealth to future generations, provide for unity within the family, and leave a legacy of wisdom and opportunity, so you can create an estate plan that transcends generations, tune in now!

In This Episode About Estate Planning to Bridge Generations, You’ll Discover:Where Estate Planning Fits into Your Cashflow Creation SystemFamily Vision, Mission, and ValuesHow to Transcend GenerationsRole of Professionals in Building Legacy PlansAbout Andrew Howell Find Out More About Andrew HowellBook A Strategy Call

In This Episode About Estate Planning to Bridge Generations, You’ll Discover:

Why traditional estate planning fails at increasing family wealth and promoting character development.

How the core of the Entrusted model of estate planning is about meaningful relationships.

How to transfer wealth in a way that incentivizes work and stewardship instead of producing entitlement.

The top 3 eroding effects on generational wealth.

Why traditional estate planning that divides assets limits your family's ability to make an impact.

Why leaving your money to charity creates a lost opportunity for your family.

How to set up your family wealth as a bank to create opportunity, entrepreneurship, and accountability.

Why the first priority in leaving a legacy is to know who you are as individuals and a family.

Where Estate Planning Fits into Your Cashflow Creation System

Encircling your family and assets with a bulletproof estate plan will maximize your peace of mind.  But it’s just one small step of a greater journey.  

That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.  

The first step is keeping more of the money you make.  This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access them as an emergency/opportunity fund.  This step frees up and increases your cash flow, allowing you to save more and consequently invest more.

Then, you’ll protect your money with savings, privatized banking, and legal protection.  This is where estate planning fits in.  You’ll know that no matter what happens to you, your wishes will be carried out, your assets will remain intact, and your wisdom will empower generations after you.

Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy.

Family Vision, Mission, and Values

A successful estate plan isn’t just about legal frameworks - it’s also about meaning. According to Andrew Howell, families that thrive across generations often share more than just money. They also share a common vision, values, and a mission that unites them.

While this might sound like typical corporate jargon, it’s actually a practical way to keep your family unified when managing and distributing wealth. When your estate plan reflects your family’s shared beliefs and long-term goals, it becomes so much more than simple paperwork: you might describe it as a blueprint for continuity and stewardship.

Whether it’s entrepreneurship, education, or service, documenting your family’s purpose can help future generations make informed decisions about their own lives. In essence, that’s what makes a plan enduring, not just wealth transfer, but clarity of identity.

How to Transcend Generations

If your goal is to build something that outlives you, then your estate plan needs to do more than just pass down assets. It must create a system for longevity. That’s how you transcend generations, by equipping your heirs with not only resources but also the tools to manage, protect, and expand them.

Andrew Howell’s approach encourages families to think of their wealth like a business or bank, one that future members contribute to, borrow from, and are accountable within. This framework encourages responsibility and purpose, rather than mere entitlement.

More than legal documents, this kind of planning builds culture. And when your strategy includes financial literacy, leadership development, and stewardship training, it does more than transfer money; it rewires how your family relates to wealth.

Role of Professionals in Building Legacy Plans

Creating an estate plan that lasts beyond your lifetime isn’t a solo effort. It’s a team sport, of sorts. While your attorney plays a key role in drafting and structuring the plan, there’s often more at stake, especially when your family’s business, charitable giving, or tax strategy is involved.

Andrew Howell emphasizes the importance of a coordinated team, comprising an attorney, CPA, and financial advisor. 

Each brings a different piece to the puzzle. Your attorney ensures legal strength and clarity. Your CPA helps maintain tax efficiency across generations. And your financial advisor helps align your family’s investments with long-term goals.

When these professionals collaborate, your plan isn’t just legally compliant, it’s strategic, flexible, and built for the future. Andrew’s most successful clients are those who view estate planning as an integrated process, rather than a one-time event. Together, your team can help ensure your family legacy isn’t just preserved but thoughtfully carried forward.

About Andrew Howell 

Andrew L. Howell is a Co-Founder of the Salt Lake City law firm York Howell & Guymon. His focus is on estate planning, asset protection planning, probate and estate administration, charitable giving, sophisticated business structuring and transactions, and tax planning.

Additionally, he is passionate about (and regularly assists clients with) family legacy planning, stock and asset sales and purchases, buy-sell and shareholder agreements, and business buy-out and business succession planning. Mr. Howell’s practice has a specific focus on ultra-high-net-worth families and business owners.

Mr. Howell is a leader at the forefront of responding to the industry-wide shift in estate planning resulting from client demand for a more holistic approach to wealth transfer. He assists his ultra-high-net-worth clientele in creating dynamic estate plans, focusing on what they can do to increase harmony and purpose in their planning.

Mr. Howell is the co-author of Entrusted: Building a Legacy That Lasts, which features seven core disciplines of successful wealth transfer of high-net-worth families going back hundreds of years, as well as Riveted: 44 Values That Change the World.

Andrew Howell is routinely recognized as a Mountain States Top Lawyer and was credited by Salt Lake Magazine as a Rising Star on the Mountain States Super Lawyers List in 2010, 2015, 2016, 2017, 2018, and 2019. Utah Business Magazine named him among Utah Legal Elite from 2011 through 2016. Mr. Howell is recommended as one of the Top 100 Lawyers in Utah by The National Advocates.

York Howell & Guymon was celebrated as one of Utah’s Fast 50: Emerging 8 companies in 2016 and is ranked #1,073 on Inc. 5000’s Fastest Growing Companies in America. During Mr. Howell’s five years as Managing Partner, the Firm has grown from three lawyers to sixteen and now employs thirty-five people.

Find Out More About Andrew Howell

Learn more about how you can improve your results by entrusting wealth to future generations.

Discover more about Andrew Howell and the Entrusted planning process, or contact them directly at [email protected].

Book A Strategy Call

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

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

Financial Strategy Call: Discover how Privatized Banking, alternative investments, tax-mitigation, 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.

https://www.youtube.com/watch?v=AO7Y3RkLaFI

Want to get the most income later in life?  Your success depends not on one product, but the coordination of financial tools and your entire personal financial system.  Whether your focus is on acquiring cash-flowing assets or you have a more typical investment portfolio, whole life insurance and annuities can play a critical role.  That's why we’re talking with Dr. Wade Pfau, a widely-recognized expert on income strategies with whole life insurance.

So if you want to get the most income during retirement, have the greatest chance of not running out of money, leave the greatest legacy, and see why the higher premium of whole life is worth it over "buying term and investing the difference", tune in now!

In this episode, you'll find out:

Why the typical approach to retirement planning leaves so many in scarcity with the possibility of running out of money.

How an integrated strategy using life insurance products with an investment portfolio provides more income during retirement.

3 ways whole life insurance is more than an income replacement that's no longer needed after retirement.

Why a financial strategy that includes whole life outperforms “buying term and investing the difference.”

How you can spend more during retirement and pass on a bigger legacy.

How whole life insurance and annuities provide an “actuarial bond” environment to replace traditional bonds in the typical asset allocation. This divides the functions of growth and income into separate assets, and give you more growth and more income.

Why life insurance that uses bonds is better than buying bonds directly.

How to preserve your investment portfolio and minimize the sequence of return risk, giving you more income during later years.

About Dr. Wade Pfau

Wade D. Pfau, Ph.D., CFA, RICP, is the curriculum director of the Retirement Income Certified Professional designation and a Professor of Retirement Income at The American College of Financial Services in King of Prussia, PA.

He is also a Principal and Director for McLean Asset Management.

Dr. Pfau holds a doctorate in economics from Princeton University and publishes frequently in a wide variety of academic and practitioner research journals on topics related to retirement income. 

He hosts the Retirement Researcher website, and is a contributor to Forbes, Advisor Perspectives, Journal of Financial Planning, and an Expert Panelist for the Wall Street Journal.  

Dr. Pfau is the author of several books on retirement income strategies. 

Dr. Wade Pfau Links and Mentions

RetirementResearcher.com

Safety-First Retirement Planning: An Integrated Approach for a Worry-Free Retirement

How Much Can I Spend in Retirement? A Guide to Investment-Based Retirement Income Strategies

Reverse Mortgages: How to Use Reverse Mortgages to Secure Your Retirement

Find Out Your Next Step to Time and Money Freedom

If you would like to assess your complete financial picture and find your personal best strategy to maximize your cash flow and control, we can help.

By the way, we have a free Quick and Easy Privatized Banking Guide that outlines just how Privatized Banking gives you the most powerful storage tank for your cash, PLUS it boosts investment returns, so you can more quickly get to the point where you never run out of cash.

If you are ready to personally implement Privatized Banking, alternative investments, or cash flow strategies to keep more of the money you make, book your strategy call with The Money Advantage advisors today.

Thanks for Tuning In!

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Thanks for listening!