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

Nicole Holland has one goal: to help established business owners and entrepreneurs make more money fast.  How?  By increasing their visibility, credibility, and profitability.

Nicole is a first-rate podcaster, publicist, marketing strategist, and master connector of incredible humans.  She has built her business by building authentic relationships.  Nicole strategically teaches, and equips other entrepreneurs to do the same.  Because building powerful, vibrant connections accelerates your relationship capital, it's key to your business and financial success. 

That's why she now uses her podcast, masterclasses, dinners, summits, a podcast guesting agency, and one-on-one work with clients to help others build authentic relationships.  

In This Episode

Whether it's developing joint ventures, finding a coach or mentor, connecting with a mastermind, hiring, or serving clients directly, relationships are the real value in your business.  In fact, your business will absolutely fail without successful relationships.  And, while there is a certain mojo to mastering the art of building relationships, most people do it completely wrong.  All the right tactics will fall flat if you start with the wrong motives.  In this episode, Nicole Holland shares the secret to developing authentic relationships

We often talk about your thinking in your life, business, and financial life.  Choosing the right mindset, and then lining up your actions with your mindset will lead you to flourish.  That’s how you’ll create a life you love and truly enjoy it.  You’ll also be able to recalibrate your business to become a self-sustaining, cash-flow-producing asset.

Remember that wealth creation rests on the governing principle that dollars follow value?  Today, we’ll unpack strategies to increase the value you provide through your business. 

We’ll take this entrepreneurial thinking down into the tactical.  We'll discuss ways to expand your relationships, up level your impact and influence, increase your contribution, and build a platform to serve more people with more value.

Where Your Entrepreneurial Mindset Fits into the Cash Flow System

As important as cultivating the right mindset and investing in your business are, they are just one step in a greater journey of financial freedom. 

Our 3-step Entrepreneur’s Cash Flow System first helps you keep more of the money you make.  We do this through tax planning, debt restructuring, cash flow awareness, and alternative savings strategies.  This step frees up and increases your cash flow, so you have more to invest.

Then, we help you protect your money with insurance, legal protection, and privatized banking. 

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

Who Is Nicole Holland?

https://www.youtube.com/watch?v=E3AzQpUL16Y

When buying life insurance coverage, most people don’t have a complete map.  Without all the information to make the best decisions, many people make mistakes that lead to buyer’s remorse.  But you don’t have to worry, you can recognize and sidestep the common pitfalls people make.

Don’t end up frustrated, discouraged, unsatisfied, or without protection in your greatest hour of need. If so, what you buy won't serve you the way you thought it would. 

Instead, you can make the best life insurance decisions by learning what not to do. 

Table of contentsWhat We’ll CoverWhere Life Insurance Policies Fits into the Cash Flow System10 Mistakes to Avoid When Buying Life Insurance#1) Not Getting Your Full Human Life ValueMyth: Worth More Dead Than AliveMyth: Life Insurance Is Needs-BasedMyth: There’s Always Tomorrow#2) Not Buying the Right Types of Life InsuranceOnly Buying a Term Life Insurance PolicyBuying a Permanent Life Insurance Policy That Lacks Guarantees#3) Trying to Save Money#4) Focusing Only on Death Benefit#5) Relying on Group Coverage#6) Not the Right Product Design#7) Not Buying With the Right Life Insurance Carriers#8) Not Buying the Right Life Insurance RidersPaid-Up Additions RiderWaiver of Premium RiderAccelerated Death Benefit Rider (Terminal Illness and Chronic Illness Riders)Convertibility Rider#9) Over-Analyzing#10) Not Buying Life Insurance Soon EnoughYour Decision Point

What We’ll Cover

Today, we’ll simply answer the question:

What are the most common mistakes people make when buying life insurance?

We’ll help you avoid the pitfalls and win at purchasing life insurance policies.  With this information, you’ll get the protection that serves you the most. Then, you'll have the greatest peace of mind and best accomplish your goals.

Where Life Insurance Policies Fits into the Cash Flow System

Life insurance is just one small step in the greater journey of building time and money freedom. 

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. This step frees up and increases your cash flow, so you have more to invest.

Then, you’ll protect your money with insurance and legal protection, and Privatized Banking.  This second stage is where all aspects of insurance and Privatized Banking live. Here, you’ll create the right canopy of protection in your financial life. And, you'll secure your ability to control your access to capital, by being your own banker. 

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

As you are empowered to make the best life insurance decisions, you’ll move beyond analysis paralysis and make forward traction. Then, you’ll gain momentum on your journey to building time and money freedom.

10 Mistakes to Avoid When Buying Life Insurance

These mistakes and the myths associated with them should generate great questions to ask before you fill out any life insurance applications, look at life insurance quotes or get life insurance rates.

#1) Not Getting Your Full Human Life Value

Many people get less than the maximum insurance they qualify for, leaving them underinsured. 

You wouldn’t want to insure your car or your house for only half its value. So why would you leave your most valuable asset only partly protected? You are the originator of all of your other assets, the producer of your life’s wealth.  Insurance protection should start at the source. 

This widely common mistake stems from mainstream skepticism about insurance. Upon further investigation, these ideas come from one of the top three myths about insurance.

Myth: Worth More Dead Than Alive

As a residential agent, Pat Hiban sold over 6,000 residential homes, earning the title of Billion Dollar Agent.  He’s also the host of Real Estate Rockstar Radio, best-selling author of Six Steps to Seven Figures: A Real Estate Professional’s Guide to Building Wealth and Creating Your Destiny, founder of Rebus University and Big Profit Agents Community, and co-founder of GoBundance.

Pat Hiban is a business owner who has created a life and business he loves.  Not only that, but he’s also built an investment portfolio of cash-flowing assets. 

Putting these steps in place requires the right mindset.  Through this conversation, you have the opportunity to learn from his journey, model the successful few, and accelerate your success.

Where Your Mindset Fits into the Cash Flow System

As important as your mindset, your business success, and your investing strategy are, they are part of the bigger picture of building time and money freedom. 

Our 3-step Entrepreneur’s Cash Flow System first helps you keep more of the money you make.  We do this through tax planning, debt restructuring, cash flow awareness, and alternative savings strategies.  This step frees up and increases your cash flow, so you have more to invest.

Then, we help you protect your money with insurance, legal protection, and privatized banking. 

Finally, you’ll put your money to work and get it to make more.  You increase your cash flow by investing in cash-flowing assets like your business and real estate to financial freedom and leave a rich legacy.

Who Is Pat Hiban?

After being labeled “learning disabled with speech deficiencies” in the 2nd grade, Pat Hiban struggled through public school and graduated college in 1987 with a 2.6 GPA.

After college, Pat jumped into the sales industry with the least barrier to entry – Real Estate!!!  In his first year, Pat struggled and almost quit, making just a little over $13,000 in commissions. 

For the last 30 years, Pat has been heavily involved in the Real Estate industry as a top agent, broker, and investor in residential and commercial properties. Throughout his career, he has sold over one billion dollars in Real Estate, including over 500 homes in a single year, and 14 homes in a single day. He has been recognized by both Re/Max and Keller Williams as their number one agent in the world! 

In 2010, he sold his team business to his longtime partner, Mike Sloan, and went on a book tour to promote his book 6 steps to 7 figures: A Real Estate Professional’s Guide to Building Wealth and Creating Your Destiny. With the help of an introduction written personally by Gary Keller, the book went on to sell over 20,000 copies, hitting #6 on the New York Times Best Seller list and #1 on Amazon and Barnes and Noble.

He is an active investor with over 40 lines of passive income (mostly Real Estate). 

In 2014, Pat Hiban launched his podcast Real Estate Rockstars, which has had close to 3 million unique downloads by Real Estate Agents from 108 countries.

He currently owns and operates Rebus University and Big Profit Agents which are training platforms for active Real Estate salespeople.

He has 2 daughters in their 20’s and resides in Folly Beach South Carolina with his wife of 25 years.

Conversation Highlights

It wasn’t a passion for real estate, but the desire to make more money than his peers and not have a boss that drew Pat Hiban into real estate for himself, his life, and his finances.

Pat Hiban went through several shifts on his way to success. The first was from a salary job to commissions with higher potential earning capacity.  Then, he shifted from being a buyer’s agent to a listing agent.  When he lost a million dollars in the stock market, he decided to invest his money in real estate instead.  Finally, he decided to build businesses, rather than just a job.

To turn his work into a business, Pat leveraged teams. His objective was to buy time.

One of the biggest mistakes people make in saving money is stepping over dollars to chase pennies.  This happens any time you put so much time and energy into cost-cutting tactics to save a few cents, that you ignore the greater opportunities to make money.

https://www.youtube.com/watch?v=EG9TtjM2wHE

The reason this is so attractive is that it takes less mental energy to remove something than it does to add. However, the glamour stops there, because you can’t shrink your way to wealth. 

For your efforts to result in the freedom you crave, you must stay in the right mindset of abundance, creation, innovation, and production.

Two Mindsets About Saving Money

You want to save more in your business and personal life.  But when it comes to saving money, there are two methods.  And these camps are about as opposite as can be.

Table of contentsTwo Mindsets About Saving MoneyThe ProcrastinatorsThe Misers: Experts in Stepping Over Dollars to Chase PenniesLife and Business Examples of Stepping Over Dollars to Chase PenniesHow to Escape the Naivety of the Procrastinator, Without Falling into the Trap of the MiserIn Today’s ConversationWhere Your Mindset About Spending and Saving Fits in the Cash Flow SystemWhy Most Money-Saving Tactics Are A Waste of TimeYou Get What You Focus OnSteward of All Your ResourcesTime is Your Most Valuable CommodityProduction = Service = Exchange = VelocityWhat Is Wealth?How Do You Create Dollars Instead of Stepping Over Dollars and Chasing Pennies?Stop Stepping Over Dollars to Chase PenniesBook a Call to Find Out Your Next Step to Time and Money Freedom

The Procrastinators

On one extreme, there are the procrastinators.  (Newsflash: if you’re reading this article, this probably isn’t you.)

This is the mindset of the person who lives it up today, overspending and overleveraging but attempting to outrun the mess by making more money.  They think that higher income will solve all their problems. 

They’re partially right.  If they did make more money, they could build savings.  However, Parkinson’s Law takes over and finds a way to spend the new income before they have a chance to save it. 

Unfortunately, this strategy comes with some pretty hefty baggage.  Stress and worry become constant adversaries when you’re not being honest with yourself. Instead of creating solid wealth habits, those who follow this method continually spend tomorrow fixing today’s mistakes.

The Misers: Experts in Stepping Over Dollars to Chase Pennies

In the other camp, we have the misers, the experts in stepping over dollars to chase pennies.

These people try to spend as little as possible.  In fact, they seem to think spending nothing at all is akin to godliness or some kind of financial nirvana.  They scrutinize every decision, always opting for the cheapest option.

The end game of this mindset isn’t pretty either.  Imagine the miser invented a way to live with zero expense.  What then? They may have all the money in the world, but they'd be stunted in their ability to enjoy life.

Life and Business Examples of Stepping Over Dollars to Chase Pennies

The misers will drive six miles out of the way to save two cents per gallon on gasoline.  They’ll fail to hire a needed accountant, administrative assistant, marketing strategist, or business coach because they “can’t afford to pay someone else to do it.”  They buy from the cheapest suppliers and brag about how little they spend.

How do I know?  I’m embarrassed to admit that I used to live here. 

About 7 years ago, right as I was starting out in business, I attended an extreme couponing class.  I then spent several months zealously clipping and organizing coupons in a thick binder full of baseball card holders.  I then planned my meals and weekly shopping around the coupons and sales and rejoiced when my bill was smaller than my savings. 

The problem was, I filled the pantry and closets with huge stashes of toothpaste and Wor...

Ross Stryker, CEO of Smart Asset Opportunities, is the poster child for taking control of your life and financial destiny.  In fact, just 4 years after he made a shift from typical thinking to investing in cash-flowing assets, he achieved financial freedom.  He was liberated by the power of his choices.  His key decisions to direct his mindset and investing strategy are what made all the difference for him.  His story proves that financial freedom is possible for you too.

Ross Stryker models the way and offers a hand up to anyone who would like to follow.  He's now helping others create financial freedom through alternative investments, real estate, and cash flow.

Where Mindset and Investing Fit into the Cash Flow System

We often talk about mindset. Every action you take has its roots in your thinking.  Therefore, your mindset is the initiation, hinge, and critical entry point to building time and money freedom. 

But you don’t build something great just with your mind.  You must take action towards your goal.

Finding the right investments is one of those action steps.  It’s how you create financial freedom with cash flow from assets. 

As you can see, both your mindset and your investing strategy are just two steps in the bigger journey to time and money freedom.

Our 3-step Entrepreneur’s Cash Flow System first helps you keep more of the money you make. From cultivating the right mindset to strategic moves in tax planning, debt restructuring, cash flow awareness, and restructuring your savings to where you can access it as an emergency/opportunity fund, this step frees up and increases your cash flow, so you have more to invest.

Then, you’ll protect your money with insurance and legal protection, and Privatized Banking. 

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

Who Is Ross Stryker, of Smart Asset Opportunities?

After 12 years serving in the military and over 20 years running a successful private practice, Ross Stryker realized if he didn’t alter his course, he’d be trading hours for dollars forever.  It was this belief that led him to launch Smart Asset Opportunities.

He’s been involved in projects totaling over $100 million and owns 40+ single family homes, 14 ATM’s, a coffee farm in Panama, apartment complexes, office parks, storage units, and ownership in a Belizean resort.  Ross is living proof that your money is better off of Wall Street, and that you can achieve financial freedom.

Just four years after his “awakening,” Ross’s investments and passive real estate income streams have surpassed his former transactional income (i.e., hours for dollars).  With over $2.5 million out in total commercial project loans, Ross has an eye for tangible assets that have a proven tax advantage, high returns, and allow for stable, continuous cash flow. 

Ross shares his wealth of real estate knowledge in a weekly blog and in his two books, including The Ultimate Freedom Prescription: Secrets from 14 Doctors … How They Created Generational Wealth in Less Than 5 Years. 

To be an SAO investor is to understand your “why,” beyond extra zeros in your bank account.  For Ross, it’s sharing everything he knows, so that others may find their own financial success and freedom.  When he’s not working in real estate deals, you might find him boating with Robert Kiyosaki, better known as Rich Dad Poor Dad.

The Definition of Accredited Investor

Most of the investments offered to the Smart Asset Opportunity community are for accredited investors only.

If you do not know what accredited means, here’s a quick definition.  

An accredited investor has at least $1 Million of net worth, not including the value of their home, or is making at least $200K if single, or $300K if married.

Most of our listeners fall into this category and are actively looking f...

How do you find the best life insurance companies?  You want only the strongest, most stable companies to ensure the best results over the long-term.  But what criteria do you use to evaluate and discover which companies are, in fact, the best? 

https://www.youtube.com/watch?v=f8ZIDLY10uM

Is there an objective measure, or is it a matter of personal opinion and preference?  Do you investigate their portfolio, their tenure in business, their size?  Do you base your decision on the illustration or the company’s financial strength?  And if you’re going with the illustration, should you look at the guaranteed rates, cash value, or the dividend scale?  And is the near-term performance more important, or the figures listed out 50 years from now?

With so many factors to consider and so many figures on the illustration, how do you decide what to evaluate?  Should you pick the one variable most important to you? Or do you try to analyze the big picture to find the company most likely to perform best over time? 

Do you get illustrations from multiple companies and compare them? 

And how long do you want to spend on your calculations?

Or do you give up the evaluation and just go with name recognition, or a trusted friend’s recommendation who is already with a company they like?

Table of contentsWhat We’ll CoverWhat This Article Won’t Tell YouWhere Insurance and Privatized Banking Fit into the Cash Flow SystemWhat Is A Life Insurance Company?The Life Insurance CompanyThe FacilitatorThe Best Life Insurance Company = Best Company + Best FacilitatorFour Elements of a Great Life Insurance Company#1) The Best Life Insurance Companies are Mutual Companies#2) The Best Life Insurance Companies Have Strong Financial RatingsThe Strength of Life Insurance Companies in GeneralRatings That Highlight the Best Life Insurance Companies#3) The Best Life Insurance Companies Have a Long Track Record#4) The Best Life Insurance Companies Have Great Customer ServiceFour Elements of the Best Financial Services Firm#1) Overall philosophy#2) Strategy#3) Relationship with Carrier#4) Succession PlanThe Team It Takes to Ensure ContinuityTwo Things That Don’t Really MatterDividend ratesNon-Direct or Direct RecognitionIn SummaryYour Decision Point

What We’ll Cover

In today’s conversation, we’ll give you the criteria to pick the best providers of life insurance.  Instead of guessing, you’ll be able to know for sure so you can make decisions for yourself.

We’ll answer:

What should you look for to get the best life insurance company?

How do you objectively rate all the data to know you’re with the best company for you?

You’ll get the criteria to evaluate life insurance companies to find out which one you should use.

What This Article Won’t Tell You

You may have come here looking for the list of all-stars and hoping we’d list out the top life insurance companies by name.  Sorry to disappoint.  We will not be listing actual companies. 

Actually, that’s for your benefit.  Not all life insurance companies work best in every state and region.  Not all will resonate with your particular end goals. Your unique situation makes one company better for you, and another better for someone else.

We do, however, promise to disclose the criteria for evaluating life insurance companies. Then, you can make sense of it all and decide for yourself.  We firmly believe that you are the best person to direct your financial life.  Therefore, we aim to provide you the education, tools, and resources to empower you to do just that.

Where Insurance and Privatized Banking Fit into the Cash Flow System

Picking the best insurance company is a huge step towards implementing your Infinite Banking Concept private wealth system.  But it is only one small step of a greater journey of building time and money freedom. 

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

Eddie Lorin has been building a real estate portfolio over the past 30 years. He has successfully purchased and transformed $3 billion worth of multifamily real estate.  That amounts to more than 180 thriving communities with approximately 40,000 apartment units throughout the United States.  Now, as the Managing Director and Founder of Strategic Realty Holdings, Eddie provides accredited investors with a great opportunity.

Eddie Lorin is using his unique ability well.  He has a knack of turning distressed properties into thriving communities.  By providing Class A amenities and revived LIHTC (Low-Income Housing Tax Credits) to Section 8 residents within state-designated Opportunity Zones, he’s doing just that on a grand scale.

Champion of impact investing, Eddie believes you can do well for yourself by doing good.  He models and encourages investors to seek profit with a purpose.

The Definition of Accredited Investor

If you don't know what accredited means, here’s a quick definition.  An accredited investor has at least $1 Million of net worth, not including the value of their home, or is making at least $200K if single, or $300K if married.

We know that a majority of our listeners and audience fall into this category.  You're actively looking for ways to put your cash to work earning a return most productively.  

If you aren’t accredited yet, this will be an excellent opportunity to expand your knowledge in preparation.

Where Real Estate Investing Fits into the Cash Flow System

As you take control of your life and financial destiny, you’re continually searching for the right investments.  You want assets you know and control that match your investor identity. 

Today’s conversation introduces you to key insights on real estate investing opportunities in a new sector. 

As exciting as the right investments are, they’re just one piece of a greater process of building time and money freedom. 

Our 3-step Entrepreneur’s Cash Flow System first helps you keep more of the money you make.  We do this through tax planning, debt restructuring, cash flow awareness, and restructuring your savings to where you can access it as an emergency/opportunity fund.  This step frees up and increases your cash flow, so you have more to invest.

Then, we help you protect your money with insurance, legal protection, and privatized banking. 

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

Who Is Eddie Lorin and Strategic Realty Holdings?

Since a young age, Eddie Lorin has been a dreamer, a doer, and a proponent of the underdog.  As one of four boys raised by a single mother in southern California, Eddie grew up with modest means.  After losing his father as an infant and his mother at age 17, Eddie strove to create a life and home for himself that was better than the one he was given.  Additionally, he was motivated to help others living in similarly tight financial situations to do the same.

Eddie has made it his life mission to fix the housing affordability crisi...

https://www.youtube.com/watch?v=IoUVS9OLj-c

The real rate of return is objective, rational, and substantial. It delineates the exact performance of your capital from start point to end point.  It has actual value and meaning.  Like concrete beneath your feet, it’s solid ground. At its core, it is the truth. 

But finding the truth is often much harder than it appears. Searching for the real rate of return can be like battling optical illusions of smoke and mirrors. 

Fund managers, the media, and wall street proclaim average rates.  Every day, average yields are cited as some kind of absolute, predictive authority, assuming the clout that they have no right to take.

You need truth in your financial decision-making.  Instead of staking your financial future on the shifting sand of average returns, it’s time you recognize them for the imposter they are.

Table of contentsWhat We’ll CoverWhere Your Investing Mindset Fits into the Cash Flow SystemThe Stock Market Is Not What Most People Actually BelieveWhat Is the Difference Between Average and Real Rates of Return?What Is an Average Return?The Assumptions We Make Based on Average Rates of ReturnDiscovering the Fallacy in Average Rates of ReturnWhat Is the Real Rate of Return Formula?The Impact of LossesLosses are More Powerful Than GainsWith Losses, Average Returns Are Always Higher Than the Real ReturnsAverage vs. Real Returns in HistoryWhat Is a Nominal Rate of Return?Annual Real Rates of Return Over TimeInitial ConclusionsViewing the Annual Return with the Practical Lens of Taxes, Inflation Rate, Dividends, Management Fees and Transaction CostsComprehensive Conclusions Based on All the FactorsInterpreting the Historical DataThe Impact of Market TimingAdding Investment Over Time, Rather Than All at OnceThe Fallacy of Expecting the Future to Mimic the PastIn SummaryYour Decision Point

What We’ll Cover

In today’s conversation, we’ll take an in-depth look at actual market returns over the last 118 years and why average returns are misleading and can’t be taken at face value. 

And finally, we’ll reveal how to take control of your financial future and not just hope that your speculations and assumptions are accurate.

This conversation will answer:

What do market returns mean for me?

What returns should I expect?

How do I calculate the real rate of return?

What should I do to best take control of my financial future and build time and money freedom?

You’ll get the tangible facts and concrete evidence to form your own opinions. 

Where Your Investing Mindset Fits into the Cash Flow System

Understanding the real rate of return is part of ensuring your ability to reach your investing goals.  But before that, this knowledge will help you calibrate your mindset to fine-tune your goals in the first place, so you actually end up where you want to be. 

Both investing and mindset are a part of the Entrepreneur’s Cash Flow System. 

Today’s comprehensive conversation will help you invest well in stage 3.  But, to achieve investing success, we’ll help you approach it with the right awareness and mindset in stage 1, so your efforts don’t crumble.

The Stock Market Is Not What Most People Actually Believe

Many people believe that they can expect at least 5 – 7% gains each year in the market, that the market will always grow over the long haul, and that their money will compound over time.  At the same time, your experience of market losses, and the anxiety about your own portfolio suggest that our expectations are wrong. 

According to data from YAHOO! Finance, here’s the actual performance of the S&P 500 Index over various dates and timeframes: *

+19.4% gain 12/30/2016 to 12/29/2017 (12 months)

+9.4% gain from 12/29/2017 to 10/01/2018 (9 months)

-19.6% drop from 10/01/2018 to 12/24/2018 (about 3 months)

+5.04% annual real rate of return from 01/01/15 to 12/31/2018 (4 years)

+2.

Jack Gibson, President and Co-Founder of High Return Real Estate, gets it.  After building a multi-million-dollar income with a multi-level health company, he had a serious wake-up call.  A bet was placed against his company’s stock, and he ran the risk of losing his financial footing.  He felt vulnerable watching his only income source teeter and committed to building multiple streams of passive income. In a short time, he’d built a portfolio of over 50 properties.  Now, along with Jack Schechter, he operates High Return Real Estate, a turnkey provider. They specializing in helping other people build cash flow income with turnkey rental real estate in Indianapolis, IN.

Where Turnkey Real Estate Investing Fits into the Cash Flow System

It’s not enough just to make a decent living and trust someone else to manage your money for you. Instead, you want to control your life and financial destiny. 

That’s why we, at The Money Advantage, help business owners build time and money freedom.  We do this using our 3-step cash flow system. 

First, you’ll keep more of the money you make through tax planning, debt restructuring, cash flow awareness, and restructuring your savings to where you can access it as an emergency/opportunity fund. 

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

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.

Today’s conversation about turnkey real estate investing fits into Stage 3: Investing.  It will educate you and give you options for investing for cash flow.

Who Is Jack Gibson?

Jack Gibson is the President and Co-Founder of High Return Real Estate.  He began his entrepreneurial journey at 19 and founded his first company at the ripe old age of 21.  Operating a successful nutrition consulting and distribution company, he had built a multi-million-dollar venture before he was old enough to rent a car.

Soon after that, he bought his first home as an investment.  One quickly became five, and then the bug hit.  He became obsessed with learning everything about real estate investing and soon had over 50 investment properties generating passive income. 

Today, Jack spends his time mentoring other entrepreneurs, building his real estate investment portfolio, and helping other investors build a brighter future through the power of turnkey real estate income.

Jack Gibson Conversation Highlights (Partial Transcript)

The Start of Entrepreneurship

Jack Gibson: [3:05] I was 19 and going to college.  I'd always had the entrepreneurial bug, but I just didn't know how to apply it, especially at a young age.

I was getting disgruntled with the whole “go to school, study hard, get good grades, get a job” idea.  That wasn't the path I wanted to be on, but I was just trying to make my parents proud. 

One day, while I was sitting in my dorm room, I recieved a flyer for a multi-level marketing nutrition opportunity. At first, I thought, No, I don't want to sell anything.

And then for whatever reason, it hit me, why not just keep an open mind and check it out? What do you have to lose? An hour?

That's where I think people lose opportunities. It's right in front of you, and you just don't ever really take a look at it.

So, I took a look at the business and started. By a year in, I started really gaining some traction.  By 24 months in, we created a million-dollar business, right from my dorm.

I had a lot of challenges, of course.  In that first 12 months, I had to figure it out. Then, after I graduated college, got the diploma, and made my parents proud, I worked that business full-time.  And I've been doing that ever since. 

I think we closed out at least 10 or 12 million in sales in 2018 for that entity. While it gets a little controversial, the business model offers the ability to have a business with no em...

https://www.youtube.com/watch?v=wDRmau3PzGU

Life insurance loans are one of the superpowers of the Infinite Banking Concept.  They give you ready access to capital at any time, for any reason.  These loans from life insurance policies make the cash value of specially-designed life insurance an ideal pool of capital for your investing strategy.  Life insurance policy loans provide the opportunity to earn uninterrupted compound interest and earn a return in two places at the same time.However, many people encounter a mental hurdle when they consider using loans to fund their investments. They don’t want to pay to use their money.  And they're concerned that infinite banking loan interest will eat into their returns when they put their capital to work. 

However, much financial fear is based in partial truth and lack of understanding of the full range of impacts of your decisions. 

And this isn’t your fault.  Most “financial education” is a spiffed-up sales pitch offered by "financial experts."  Instead of helping you, it's a one-way street, viewed through rose-colored glasses, to a particular financial product.  Meanwhile, you’re wondering if you will be convinced to buy something you don’t actually want or need. 

But, consider this, anything worth understanding has layers of complexity, and only those who pursue a comprehensive understanding will gain it.

This quote by Bryan Bloom strikes at the heart of the matter:

Why isn’t everyone doing this?  Everyone who understands, does.– Bryan Bloom, Confessions of a CPA

When it comes to life insurance policy loans, a healthy dose of curiosity will help you gain an understanding of a financial process, principles, and truths that will give you advantages most people only dream of.

Table of contentsWhat We’ll CoverWhere Privatized Banking Fits into Your Cash Flow SystemThe Function of Life Insurance Cash Value in Your Financial LifeA Garage to Park Your MoneyHow Life Insurance Increases Your LiquidityThree Parts of a Whole Life Insurance ContractThe Liquidity of Life InsuranceWhat Is A Life Insurance Loan?Collateralizing Your Cash Value1) You’re Using Other People’s Money (OPM)2) You Earn Uninterrupted Compound Interest3) You Recycle Your CashWhy “Paying Interest to Use My Own Money” Is a MythLife Insurance Policy Loans Allow You to Continue Earning InterestThe Value of Using Life Insurance Loans to Invest, Instead of Just Paying CashWhen You Pay Cash, You Trade ReturnsWhen You Use a Life Insurance Loan, You Stack ReturnsIncreasing Your Return on Investment by Using Life Insurance LoansPaying Cash to Fund Your InvestmentUsing Life Insurance Cash Value as a Private Reserve to Fund Your InvestmentAccounting for Loan RepaymentEarning in Two Places at the Same TimeThe Undeniable Advantage of Using Privatized Banking with Life Insurance LoansWhat Can You Use a Life Insurance Policy Loan For?Obtaining the Best Loan with the Best Interest RateIn SummaryYour Decision Point

What We’ll Cover

In today’s conversation, we’ll answer your questions about life insurance policy loans and why we use them, including:

What is the function of life insurance cash value in my financial life?How does life insurance increase my liquidity?What is a life insurance policy loan?What can I use a life insurance policy loan for?When investing, why would I use a life insurance policy loan instead of paying cash?How do I increase my Return on investment by using whole life insurance with my investments?Why would I pay interest to “use my own money”?Are there times that I should consider another loan with a better interest rate?

Packaging it all together, we’ll demonstrate why they increase returns on your investments..

Where Privatized Banking Fits into Your Cash Flow System

Life insurance policy loans are a part of Privatized Banking, just one step in the greater Cash Flow System.

Wedged between Stage 1 and 3, Privatized Banking fits into Stage 2,