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

https://youtu.be/9z9uvl23YH4

In today’s show, Todd Langford joins us to dig deeper into Indexed Universal Life. He is the CEO and developer of Truth Concepts financial calculators, better known as a financial Truth Teller.  In this valuable conversation, we uncover the fundamental uncertainty of indexed universal life insurance further.  

Recently, we had a conversation about the risks of Indexed Universal Life.  I know this isn’t a popular view.  Indexed Universal Life policies appear attractive because of the widespread perception of their safety and growth rate.  That’s why it’s more critical than ever to talk about the warning lights to ensure you have the information to make the best decisions.

Because it doesn’t matter how great something looks on the outside.  If it’s just a façade, but the structure is unstable, wouldn’t you want to know?  If these policies start great, but decline and grow progressively weaker with time, wouldn’t that be something you’d like to know upfront? 

Imagine buying a car, if you drove it off the lot in pristine condition, but the breaks, the axle, the engine, and even the body of the car started to deteriorate rapidly.  If it was known that the car’s useful life was uncertain at best, and the engine and breaks had a 50% chance of weakening to the point of making the car undrivable in 3 years, wouldn’t you want to know?

The reason that we’re going to this length is that if it was just an opinion, it wouldn’t matter all that much.  But the way to know if something is financially sound is to foretell its future mathematically.  And there’s no one more qualified to do that than Todd Langford.

Where Life Insurance Fits into the Cash Flow System

Life insurance is a critical part of your financial life.  However, it’s just one step in the bigger journey to time and money freedom.  You need all the pieces in place to produce wealth systematically.

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

The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable.  Then, you’ll protect your money with insurance and legal protection, and Privatized Banking.  Finally, you’ll put your money to work, increasing your income with cash-flowing assets.

Life insurance is part of Stage 2, protecting the wealth you’ve built.  Not only does it provide the peace of mind of protection, but it can also be used as your cash flow management system. 

That’s why it’s so important to make sure the policy you use can become a cornerstone of your wealth creation.

Who Is Todd Langford?

Todd Langford has been at the forefront of financial software development and training for over 33 years.  In 1986, Todd was hired by Norman Baker, a successful financial advisor, to develop calculators that would “prove or disprove” the validity of certain financial strategies.  Since then, he has been “Telling the Truth” and shifting paradigms about all things financial.

The calculators gave them a reliable way to compare strategies and test the soundness of ANY financial choice. 

Todd has been an advocate of effective financial strategies, regardless of their popularity with Wall Street firms, the media, or investment gurus-of-the-moment. 

Todd Langford Conversation Highlights

There are no deals in the insurance industry. Everything is a tradeoff between price and risk.  You either have higher cost with lower risk, or lower cost with higher risk.

Actuarial science is about property loss.

A large risk pool means the insurance company can reduce the cost of premiums for everybody.

In finance, the math is often accurate, but wrong, because of the assumptions behind the facts. Usually, financial analysis leaves out the critical piece of the time value of money.

Tax deferral may seem like the epitome of smart financial planning.  But tax-deferred investments can be a tricky trap like the spiderwebs that caught Frodo in Lord of the Rings.

https://www.youtube.com/watch?v=u322ezhxotg

How should you think about retirement accounts if you’re a business owner?

In today’s conversation, we answer:

What is tax deferral?What are the underlying assumptions that make this advice so widespread and common?When should I pay tax now, and when should I defer tax instead?

Then, we’ll give you the most important questions to decide whether you should postpone tax.  We’ll show you why business owners should think twice before using tax-deferred retirement plans. And, we'll talk about the one circumstance in which deferring tax could benefit you.

You’ll gain clarity to find strategies that work best in your particular circumstance, to achieve your objectives.

What if you’re not a business owner?  This conversation still applies to you because tax deferral still works the same way.  You’ll understand your financial options better and be more equipped to make decisions that put you in control.

Table of contentsWhere Do Tax Deferred Investments Fit into the Cash Flow System?What Is Your End Game?Two Financial DestinationsWhat Is Tax Deferral?Pre-Tax Investment StrategyTax PostponementLoss of Control with Unknown Future TaxYou Pay More Taxes in the Future Than You Would Have Paid TodayThe Balance Isn't All YoursRetirement Accounts Only Work in Your Favor If You Take Out the Money at A Lower Tax RateWill You Be in a Lower Tax Bracket in the Future?Your Future Taxable Income Could Likely Be Higher Than Today’sThe Future of Tax Rates Is … Not Very Stable or PredictableChanging Tax ThresholdsIs Now A Good Time in History to Be Deferring Tax?Are You Sure You’ll Be in a Lower Tax Bracket in the Future?Decide if A Retirement Account Is for YouAsk Yourself These Questions to Find Out if You Should Defer TaxesGain Clarity to Make The Best Decision For YouStart Building Your Financial Freedom Today

Where Do Tax Deferred Investments Fit into the Cash Flow System?

Selecting investment options and their tax treatment is just one step in the bigger journey to time and money freedom.  You need to have all of the pieces in place to produce wealth systematically.

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

The first stage is the foundation.  You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection and Privatized Banking. Finally, you put your money to work, increasing your income with cash-flowing assets.

Investing is part of stage 3.  It’s here that you select the best opportunities that help you achieve your goals, as well as the tax structure surrounding those investment decisions.

What Is Your End Game?

Before you set out to determine the wisdom and validity of using a particular financial product or strategy, you first have to know your end goal.

That’s because there are no bad products.  There are only bad strategies. 

More specifically, some strategies won’t work to get you where you want to go.  For instance, a train is a fabulous invention, but it can’t get you from Boston to Sydney, Australia.

You first need to know if you want to defer tax. 

Two Financial Destinations

When it comes to financial goals, one destination is financial freedom, where you have passive income (income from assets) that surpasses your monthly expenses.  When your income is from assets, you no longer need to work as a source of income.  To get there, your strategy will need to include investing in assets that produce cash flow returns.  To apply this strategy successfully, you become an active investor and invest in what y...

In today’s show, we interview Dustin Griffiths, tax strategist with Kings Tax and Accounting.  We’ve had him on the show twice before because taxes are a key area that we see over and over again that business owners of all types are leaking money. 

Let’s bring this into perspective for a minute.  If you were overpaying your tax bill by $10K, $20K, or $50K because you didn’t know how to interpret the thousands of pages of the tax code, when would you want to know? 

What could you do if you kept an extra $10K, $20K, or $50K of the money you made, instead of owing it in taxes? 

And if it took a very special person to understand the tax code and be able to help you apply it proactively, so that you stop overpaying this year and every year going forward, how far would you go to find them?

We’re about to shorten your path to tax savings because Dustin has been putting more money back in business owner’s pockets for years. 

Dustin’s experience is so valuable because it means he understands how to apply the tax code for specific types of business owners. 

Today, we’ll cover strategies that apply most often to doctors, dentists, and chiropractors.  These professionals have many commonalities in their business and tax structure that make specific strategies useful. 

If you are a medical or alternative medicine professional, you’re about to be astounded. 

If you’re not a doctor, dentist, or chiropractor, you’ll glean some key insights that could work for your industry as well. 

A disclaimer here: Every person’s unique set of circumstances means that certain strategies may work in some cases but not in others.  As with any financial education, talk with a professional to implement strategies that will work for you.

Where Taxes Fit into the Cash Flow System

Tax saving strategies help you pay the minimum legal tax this year and every year going forward.  As a business owner, tax strategy is an essential part of keeping more of the money you make and increasing your cash flow.  But, as critical as it is to control more of your money, it’s just one step in the bigger journey to time and money freedom.

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

The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable.  Then, you’ll protect your money with insurance and legal protection, and Privatized Banking.  Finally, you’ll put your money to work, increasing your income with cash-flowing assets.

Today’s conversation fits in the first stage to help you find more money to keep by strategically shrinking your taxes.

Conversation Highlights

The blind side of tax deferral and the difference between deferring and saving tax

Today’s low tax rate environment compared to top tax rates throughout US history

Entity structure and pay structure options to save self-employment taxes

Tax-free income for up to 14 days of rent using the “Augusta Rule”

Employing your kids, up to the standard deduction

How to bump income down to meet specified service business requirements to qualify for the 20% flow-through deduction

Using cost segregation to accelerate depreciation on parts of a commercial property, increasing today’s deductions

Profession-specific strategies for doctors, dentists, and chiropractors

Connect with Dustin Griffiths of Kings Tax and Accounting

Check out Dustin's previous interviews here:

How to Pay Less in Taxes Legally

Trump's Tax Reform, What Entrepreneurs Need to Know

Find out how you can save taxes today.  Call Kings Tax and Accounting at (801) 980-9495, or email Dustin directly at [email protected] to request a conversation.

Get Financial Clarity Today

If you would like to implement Privatized Banking, cash flow strategies,

Investing in your business can be one of the most focused, strategic, and productive financial decisions you can make.  If the environment and the indicators are right.  That’s because your business is one of your best investments.

However, if you listen to the conventional perspective of typical financial planning, you’ll be led to believe just the opposite. 

A recent conversation highlights this prevailing mindset perfectly.  After speaking to a roomful of business owners, I talked with one successful business owner.  He remarked,

“It’s risky to invest in your business.  After all, most businesses fail, and it’s better to invest your money with people who know what they’re doing.”

He's not entirely wrong, and we're all entitled to our own opinion.  However, this is a limiting belief that often holds business owners back from reaching their financial potential.  It’s like they have each foot in two separate worlds.  They’re building their business with their time, energy, and mental capacity to build a successful, thriving business on the one hand.  But on the other hand, they’re hedging their bets wondering if it’s worth investing in, or whether it’s all going to collapse. 

As a business owner, how do you build the real path to wealth?  There will come a time when you must decide whether to invest in your own business or to put your dollars to work somewhere else.  Should you invest in your business, or should you diversify?  How do you think about your business in the grand scheme of building long-term, sustainable, extraordinary wealth? 

In today’s conversation, we answer:

Should you invest in your business?Is it risky to invest in your business?What’s the best way to reduce the risk of investing in your business?

We’ll share our perspective to help you gain clarity and freedom to make financial decisions that align with your value system, congruent with your goals and objectives, and move you closer to time and money freedom.

You’ll gain confidence and peace of knowing you’re making the right decision of whether or not to invest in your business.

Table of contentsWhere Does Investing Fit into the Cash Flow System?Should You Invest in Your Business?Where Else Can You Put Your Money?Is it Risky to Invest in Your Business?What Is Business?How Can You Invest in Your Business?Why Most People Believe Investing in Your Business Is RiskyInvesting in Your Business Reduces Risk Because You Gain ControlWhat Insurance Companies and Banks Say About How Risky Business IsWhat Investing in Your Business is NotHow to Reduce Risk When Investing in Your BusinessInvest in Your Business with ConfidenceStart Building Your Cash Flow System Today

Where Does Investing Fit into the Cash Flow System?

Deciding where to invest is just one step in the bigger journey to time and money freedom.  You need to have all of the pieces in place to produce wealth systematically.

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

The first stage is the foundation.  You keep more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection and Privatized Banking. Finally, you put your money to work, increasing your income with cash-flowing assets.

Investing is part of stage 3.  It’s the step where you turn your money into more by investing in the best opportunities that help you achieve your goals.  Should one of those opportunities be your own business?

Should You Invest in Your Business?

First of all, in finance, there is never a blanket, one-size-fits-all answer.  As with making any prudent and responsible financial move, it depends.  Your unique set of financial circumstances, stage in business, and profitability largely determine the wisdom of investing in your business.

In today’s show, we interview Jon Michaels, VP of Portfolio Services at Renters Warehouse.  Renters Warehouse is America’s largest, full-service real estate firm for Single-Family Rental homes.  They offer listing, investing, and renting services all under one roof.  Renters Warehouse believes that clients deserve a partner to help them execute on their investment strategy with ease.  Their real estate investment services marketplace and hassle-free property management services can help you to take the next steps to financial freedom.

Where Investing Fits into the Cash Flow System

Investing in cash-flowing assets is a huge part of building time and money freedom.  But, as important as cash flow income is, it’s just one step in the bigger journey.

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

The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable.  Then, you’ll protect your money with insurance and legal protection, and Privatized Banking.  Finally, you’ll put your money to work, increasing your income with cash-flowing assets.

Who Is Jon Michaels?

Jon Michaels is a Vice President with Renters Warehouse, the first national real estate investment brand.  He’s been serving owners and operators of investment real estate for nearly a decade.

Born and raised in Kansas City thirty-two years, Jon attended Washburn University.  He went on to earn his MBA at Baker University and then got his real estate license shortly after.

Jon and his family relocated a few times with a company providing advertising solutions to multi-family owners and operators.  Since 2017, he calls South Carolina home with his amazing wife, Jen, and three beautiful daughters, Stella, Elsie, and Lucille.

In 2017, Jon Michaels joined a software company that served single-family property managers. He then joined Renters Warehouse in 2019 as a member of their portfolio services team.  Jon is a licensed broker, serving investors who both buy and sell portfolios of single-family rental homes nationally.

You can connect with Jon Michaels on most social platforms:

Facebook

LinkedIn

Instagram

Conversation Highlights

About Renters Warehouse

Renters Warehouse has operations in 40 US markets. They manage more than 22,000 single-family rental homes for approximately 15,000 landlords and institutional investors.

Last year, the company acquired Own America, the first online single-family rental investor portal.  The program that was built for Wall Street investors to acquire SFR portfolios has now become available for free to the average savvy RE investor.

The Renters Warehouse Investor

Renters Warehouse serves a few client profiles today: the accidental landlord, the savvy real estate investor, and the large funds deploying $20-$30M in capital per month in acquiring portfolios of SFR’s. Most recently, they've seen the rise of the midsize investor who owns anywhere between 25 – 2000 homes.

According to Noel Christopher of Renters Warehouse, the savvy real estate investor who owns 10 or fewer homes accounts for nearly 90% of the ownership of our industry’s inventory today.

Property and Portfolio Inventory

Renters Warehouse has portfolios of SFR’s exclusively listed mainly in secondary markets like Columbia, SC; Cape Coral, FL; Lafayette, LA; Memphis, TN; and Indianapolis, IN.  New inventory is updated daily.

Net yields on these marketed portfolios range from 3 to 10%.  This beats a lot of financial instrument returns that investors find today.

Investors can register for a free account and enter their real estate investment strategy and preferred buy-boxes.  Then, they’ll be successfully matched with SFR investment opportunities real-time with emailed alerts and personal phone calls from the local ma...

https://www.youtube.com/watch?v=9FkwOp08REc

Indexed Universal Life Insurance can seem attractive.  At some point in your Infinite Banking research, you’ve probably even heard about using IULs instead of whole life insurance.  Consequently, we get a lot of questions about whether IULs are better than whole life.  Usually, this is because the illustrated values are better than for whole life, with lower premiums.  And there’s the appearance that you can’t lose money because of “downside protection and upside potential." Comparatively, whole life can look expensive and pretty boring. 

However, IULs have risks that prevent it from being compatible with Infinite Banking. 

These risks are causing many people to be in danger of losing policies they’ve paid into their whole lives.

We’ll expose the truth about IULs and show you the darker side of the inner workings of these life insurance policies. 

And we’re not the only ones raising red flags about Indexed Universal Life.  Despite the popularity of these policies, some of IUL’s dirty laundry has been coming out of the closet.  The product itself has a reputation stained by lawsuits and even a warning by the state of New York outlining the dangers of IULs. 

Table of contentsThe Truth About IUL RisksWhere Life Insurance Fits into the Cash Flow SystemWhat Is Indexed Universal Life Insurance?Crediting RateCaps and MinimumsMany Beliefs About Indexed Universal Life Insurance Are More Myth Than FactThe Truth About IUL RisksIUL Risk 1: Your Cash Value Account Can Go DownMinimum Crediting Rate Is NOT Net of FeesIUL Risk 2: Flexible Premiums Can Be Used Against YouAnnually Renewable Term Insurance Has an Annually Rising CostHigher Costs Slow the Buildup of Cash ValueIndexed Universal Life Premiums May Become Insufficient to Cover CostsPremiums, Cash Value, and Internal Growth Must Cover the Increasing Internal ChargesYou Might Have to Pay Additional Premium to Keep the Policy in ForceIUL Risk 3: You Can Lose MoneyIUL Risk 4: The Policy May Not Last Your Entire LifeBottom Line: Indexed Universal Life Policies Lack GuaranteesEnsuring Your Policy Will Work for Infinite BankingGuaranteed Death BenefitGuaranteed PremiumsPolicy EndowsGuaranteed Cash Value Dollar Amount, Not Guaranteed Interest RateStart Your Life Insurance Today

The Truth About IUL Risks

In today’s show, we’ll discuss the risks of IULs.  Indexed Universal Life is a complex product with many moving parts.  This conversation is not intended to be comprehensive or fully explain IULs.  Instead, we’ll highlight the reasons why we don’t personally use them and almost never recommend them.

In a follow-up episode, we’ll talk with Todd Langford, the creator of Truth Concepts, to further dissect the truth about IUL’s mathematical and statistical faults.

Where Life Insurance Fits into the Cash Flow System

Life insurance protection is a critical part of your financial life.  However, it’s just one step in the bigger journey to time and money freedom.  You need all the pieces in place to produce wealth systematically.

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

The first stage is the foundation.  You keep more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection and Privatized Banking. Finally, you put your money to work, increasing your income with cash-flowing assets.

Life insurance is part of Stage 2, protecting the wealth you’ve built.  Not only does it provide the peace of mind of protection, but it can also be used as your cash flow management system. 

That’s why it’s so important to make sure the policy you use can become a cornerstone of your wealth creation.

What Is Indexed Universal Life Insurance?

In today’s show, we have a “fireside chat” with a client who is using Privatized Banking to invest in real estate. Here’s a real-life example of using Privatized Banking as a 401k alternative.  Why?  To gain control, build wealth, and create protection for his family along the way.

Where Does Privatized Banking Fit into the Cash Flow System?

Privatized Banking is one of the most important parts of your entire Cash Flow System.  However, it’s just one step in the bigger journey to time and money freedom.  You need all the pieces in place to produce wealth systematically.

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

The first stage is the foundation. You keep more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection. Finally, you put your money to work, increasing your income with cash-flowing assets.

Using a 401(k) retirement plan

Chuck Fahs describes himself as an “Average Joe,” a “normal person.”  He’s a mid-level exec in the packaging business.  At 58 years old, he's been married for the last 34 years, and has three adult sons and two grandchildren. 

Before he learned about Privatized Banking as a 401k alternative, there were a few things that were important to Chuck.  He wanted to get the boys through college with minimal to no debt and have great family vacations to experience the joys that life has to offer. 

He accomplished both goals.

Other than that, he just put away as much as he could and hoped to have enough when he wanted to retire. 

To that end, Chuck had a good foundation of savings habits.  He was a disciplined saver throughout his working career. 

The tool he knew to use to accomplish this was 401k plans, so that became his retirement plan.  He was dedicated, contributing to his 401(k) for most of his life, and even prided himself in never dipping into it along the way.

Introduction to a 401k alternative

As he was pursuing setting up a trust, Chuck was introduced to the Infinite Banking concept.  It was intriguing to him, but he wanted to know more.

Because Chuck has always been a learner, pursuing knowledge and education to make the best decisions, he doesn’t make big decisions on a whim.

The way he saw it, he was going to put his money into equities through his 401k or into Privatized Banking.  If he was going to make a change from what he was already doing, he needed a good reason.

He proceeded to do extensive research to understand more.  He read Nelson Nash's book, Becoming Your Own Banker, along with other books and magazines, and listened to podcasts.  And he even attended a seminar about Infinite Banking put on by Bob Murphy and Carlos Lara.

Weighing the benefits of each, he fully grasped that using Privatized Banking was a better way.  That caused him to shift from contributing to 401k plans to funding a high cash value wholelife insurance policy instead.

Benefits of Privatized Banking vs typical retirement plans

Control!

Chuck's money was no longer tax-deferred, so he wouldn’t pay tax in the future. 

He gained the ability to borrow against his cash value and still get paid interest and dividends on that money, essentially getting access to interest-free loans.  Compared to the 401k, he’s getting uninterrupted compound growth vs. a 10% penalty if he took his money out early. 

On top of that, the same money is also creating a death benefit too.  Now Chuck can get his money working harder and producing income by investing in cash-flowing assets. 

Chuck now owns multiple whole life insurance policies, including policies on his grandchildren.  He’s used his cash value to purchase a cash-flowing turnkey rental property and is planning to buy another property soon.

Change is hard, even for people, like me, who get started on new things rather quickly.  Our habits – the way we’ve always done things – end up running our lives, even when we’d like to choose otherwise. 

We react defensively to feedback, even after committing to receive and apply it gracefully.  We use poor judgment and overspend again, even though we’ve promised ourselves a million times to stick to the plan.  Or we get jazzed about a new health and workout routine, only to hit the snooze button and then cave in when offered dessert. 

So how do you truly apply a growth mindset, continually improve, and create lasting change? 

Specifically, how do you change your money mindset to choose a different approach that is more conducive to building wealth?

In his article titled, Irrational Change: You Can’t Reason Your Way Out of Something You Didn’t Reason Into, Steven Handel reveals a change agent that works.  He suggests that we should consider making changes irrationally, rather than by using logic.

The article points out a truth we all feel, but rarely act on.  Since we didn’t pick our paradigms and worldviews by rational thinking, we won’t be able to shift them by applying the rules of logic either.  Instead, we should use a much more irrational approach.

In today’s discussion of this article, we’ll help you think differently about change.  With this insight, you can grow, become better, and build a life you love.

Table of contentsWhere Does Money Mindset Fit into the Cash Flow System?Why Logic Falls ShortChange Starts by Thinking About Your ThinkingAn Irrational Approach to Change … That Actually WorksCreate Financial ChangeCreate New ConvictionsTurn Your Mind into A Mental PlaygroundStart Building Your Cash Flow System Today

Where Does Money Mindset Fit into the Cash Flow System?

Deliberately choosing a successful money mindset is a crucial part of your financial foundation. 

With the right thinking about yourself, your value, money, and human relationships, you’ll create and build wealth. But, with the wrong thinking, you’ll repel wealth, spin your wheels, and continue wealth-defeating habits. 

However, your mindset is just one step in the bigger journey to time and money freedom.  You need to have all of the pieces in place to produce wealth systematically.

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

The first stage is the foundation. You keep more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection and Privatized Banking. Finally, you put your money to work, increasing your income with cash-flowing assets.

Your money mindset is part of stage 1. Developing an abundance mindset, and taking control with prosperity thinking are what allow you to become the person that produces wealth. 

Why Logic Falls Short

Jonathan Swift, late 1600’s Anglo-Irish author and Dean of St. Patrick’s Cathedral of Dublin, published this insight about 200 years ago.  He said,

You cannot reason people out of something they were not reasoned into.Jonathan Swift

This insight holds true today. Even after centuries of psychology research, theory, and practice, we’re still recognizing the shortcomings of trying to change ourselves or others through logic. 

Cognitive Behavioral Therapy has widespread acceptance as a popular and effective method of changing mental conditions and processes.  The technique helps you identify faulty logic, reframe negative beliefs, and accept your thoughts.  But ultimately, it’s a rational approach to change.  And its ability to affect a paradigm shift and new way of being is rather limited because our minds are not often very rational.

Logic falls short because most people don’t consciously choose their current mindset and...

In today's podcast, we interview Jordan River.  You’ll hear about how he turned a $50 deposit into $50,000 in online poker winnings in 12 months using GTO (game theory optimization).  He’ll share how using the principles of GTO will help you grow your business. 

Where Building Your Business Fits into the Cash Flow System

Investing in your business is one of your best investments because it’s what you know and can control.  And turning your business into a cash-flowing asset is a big part of creating time and money freedom. 

However, your business is just one step in the bigger journey to time and money freedom.  You need good money habits to produce wealth systematically.

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

The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection and Privatized Banking. Finally, you put your money to work, increasing your income with cash-flowing assets.

Who Is Jordan River?

Jordan River is a podcaster, entrepreneur, and semiprofessional poker player. Jordan has been working in media production for 15 years, and currently focuses on podcasting as his main medium.

His work in the personal development field includes shows like The Lifebook Podcast and The Mastering Happiness Podcast, with Dr. Joel Wade.

In 2018, Jordan turned semi-pro while having a strong year at Texas Hold’em. He continues to play daily, hone his game, and frequently donates 25% of his final table winnings to charities.

Jordan River is also the son of Jon and Missy Butcher, founders of LifeBook.

Jordan River Conversation Highlights

Poker tournaments are analogous to creating and running a business.It’s all about making the right moves and detaching yourself from the outcome. Whether or not an idea (or a poker hand) works out isn’t solely dependent on if it was a good decision. All you can do is make moves that SHOULD be +EV (expected value), and don’t worry about how the cards are dealt out after that.Focus on what you can control.To calculate beyond your capabilities, learn from people who know more than you, and use technology. Copy strategies that work and forget about the ones that don’t.Everyone is in the same pool. Some talented players fail, some foolish players succeed, and everything in between. If you don't get a good grasp on reality through studying outcomes and statistics, you're left with many powerful and often negative emotions.  Then, you can develop superstitions and unhealthy beliefs.If you want to succeed next time you try your hand, focus on game theory optimal decisions. That's the only path to sustained success.Poker, like a business, is a balance of three aspects: risk, stake, and reward. Every action you make should yield a +EV formula (i.e., high risk, high reward, but low stake; Or high stakes and high reward, but low risk).Trust your instincts and exercise them. Logic and math get you very far, but sometimes they put you in a tough spot – a hard decision with no clear, logical answer. Here, you have to trust and rely on your instincts.Be charitable. Building relationships by helping others will supercharge you. And so will giving away some of your earnings.Have fun. They say when you stop having fun, you should stop playing poker. It’s the same in business.  That doesn’t mean that you’ll have no stress or zero anxiety, but you HAVE to love it on some level.

Connect with Jordan River

You can find Jordan River and keep up on his poker exploits by following him on Instagram @jordanriverig.

Visit jordanriverproductions.com to find more about his podcasting work.

Start Building Your Cash Flow System Today

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Locking in your exit strategy with a buy-sell agreement can create great certainty.  The reason is that it will accommodate the continuity of your company in the broadest range of circumstances. Planning for your continuation when you or your co-owners exit is critical.  It could mean the difference between ownership transition becoming the capstone of your success or a slippery slope to financial demise.

Table of contentsBusiness Prenup: Ownership and Control When a Co-Owner ExitsWhat If You Don’t Have an Exit Strategy?Tools and Ideas to Plan Your Exit StrategyWhere A Buy-Sell Agreement Fits into the Cash Flow SystemWhy Should I Plan for How I’ll Exit?OptionsCertainty and Peace of MindFair BargainingWhat Circumstances Should I Consider?What Are Buy-Sell Agreements?Do I Need a Buy-Sell Agreement?What Are the Options to Fund Buy-Sell Agreements?CashSinking FundA LoanInstallment PaymentsLife InsuranceHow Can A Life Insurance Policy Solve Buy-Sell Funding Problems?Stock RedemptionCross-PurchaseLLC Buy-SellBuy-Sell Agreements: How to Get StartedMultitasking Life Insurance to Indemnify Multiple

Threats at OnceAdditional ConsiderationsBuy-Sell Agreements and Infinite BankingGetting Started with Buy-Sell Agreements

Business Prenup: Ownership and Control When a Co-Owner Exits

If you're in business with others, you may wonder what would happen if something happened to them, or you. What about when or if one of you wants to leave, retires, becomes disabled or physically or mentally unable to continue, or passes away unexpectedly? 

We’ve talked about how you can compensate for losing key employees or owners with Key Man Insurance, but what about the ownership interests?

Maybe you’re the sole business owner at this point, but you hope to sell someday.  If your company is built on your reputation, knowledge, and expertise, would a strategic handoff be better than an abrupt ownership change?  Perhaps it would be better to hire well as a transition strategy.  You might be able to transfer ownership slowly over several years, giving your client base time to build a relationship with the new guy.

What If You Don’t Have an Exit Strategy?

If you share the ownership of a company, your livelihood rests on its success.  How do you make sure your family members prosper, no matter what happens to you or your co-owners?

Contingency planning is one of those things that so many people put off because it’s not an immediate concern.  According to LIMRA, in 2015, 75% of US small businesses have not had their market value assessed by a business valuation expert, and 64% of US small companies don’t have a business continuation plan.

Planning for how you sell or transition can mean the difference between peace of mind or turmoil.  When your business operations continue after losing an owner without missing a beat, you and your family will continue experiencing the financial rewards of everything you’ve built. 

If the company struggles and suffers, it could mean the inability to fulfill contracts, unhappy clients, and dried up revenue.  And this could cause financial strife for you and your family. 

It’s worth thinking this through and planning for contingencies to fully experience the fruit of your labor, no matter when or how you or your business partners exit.

Tools and Ideas to Plan Your Exit Strategy

In today’s show, we discuss the buy-sell agreement – what it is, what it does, and how it works. 

We'll answer:

Why should I plan for how I’ll exit my business? Planning for how you’ll exit your business allows for the orderly transfer of the ownership interest when a business partner leaves the company.Why should I plan for how I’ll exit my business? Planning for how you’ll exit your business allows for the orderly transfer of the ownership interest when a business partner leaves the company.What circumstances should I consider in setting up a buy-sell agreemen...