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

Brian Robbins is a 27-year chiropractor, author, real estate investor, the owner of multiple companies, and the father of 10 children.  He’s not only making a great income, but he’s also found a way to create sustainable passive income as well.  This shift is crucial to doing it all and doing it well!We’ll learn from his mental model and way of thinking that allowed him to accomplish so much.  Gleaning from his journey and lessons along the way, you’ll recognize ways to expand your own capabilities and live out your best life.

Where Your Mindset Fits into the Cash Flow System

Here at The Money Advantage, we are a community of wealth creators.  We’re entrepreneurially-minded business owners who are taking control of our lives and financial destiny.  

It’s not enough to just make a great income.  You have to figure out how to keep more, protect that money, and finally, increase and make more through the right investing decisions.

That’s why we’ve put together a 3-step roadmap to help business owners create time and money freedom. 

This conversation will help you take an honest look at your mindset and add better thinking patterns or delete old ones that aren’t helping you build the life you love today.  

Who Is Brian Robbins?

Before entering the multifamily investment arena, Dr. Robbins owned several companies including multiple medical practices, a coffee shop, a 1,500-member gym, and real estate investments. These real estate investments included a small apartment complex, a 32,000 square foot retail shopping center which houses his medical practice, and several single-family properties. 

Dr. Brian Robbins is the author of Done! The Professional’s Guide to Double-Digit Returns, Multi-Generational Wealth, and a Worry-Free Retirement (2017).

Dr. Robbins, business partner of Paul Moore, is now fully committed to helping others reach their financial goals using the Wellings Capital multifamily wealth generation platform. 

He and his wife Anita live on a farm in Central Virginia where they have raised 10 children, including 8 that were adopted.

Conversation Highlights (Partial Transcript)

Entrepreneurial Roots in Early Childhood

[3:49 Brian Robbins] I’m a chiropractor by trade. When I graduated from medical school, I always wanted to have a multi-discipline practice. 

I was an entrepreneur as far back as I can remember. My mom would get mad because I would go out on my bike, jump into dumpsters, and dig around looking for aluminum cans to throw into a big bag, because I could recycle those and make four bucks. 

I sold Postcards from door to door, and did a bit of everything as a kid, just trying to make a little bit of money here and there. 

I was born as an entrepreneur.  But after medical school, just looking at options that were out there, I had that in my mind the whole time.

Then I did the standard type of practice for several years until we were fortunate enough to adopt some children. And we adopted a sibling group of seven Russian orphans about 20 years ago. 

The Catalyst That Launched Him into Entrepreneurship

[5:08 Brian Robbins] We had two biological kids at the time. 

My wife was unable to get pregnant past those first two children. So, we looked at different options, and just really didn't want to go down the whole road of trying to work with clinics that specialize in helping you conceive. 

We decided that we would look at adopting.  

This particular group of kids came across our path.  We found out that the Russian government was in the process of getting ready to separate them and send them to three different countries, and they would never see each other.  Their ages ranged from 5 - 14 at the time. 

We were fortunate enough to be able to keep them together and bring them into our home. 

That was the catalyst that really pushed me forward on my entrepreneurial journey for sure.

The Shift Towards Entrepreneurship and Passive Income

...

https://www.youtube.com/watch?v=L9jhLD0Yz38

A big part of building a life and business you love is doing fulfilling work that produces a high income.  Some may relegate that caliber of work to the one-in-a-million, unicorn-type anomaly – a dream job that doesn’t exist.  However, research-based evidence proves otherwise, finding that 38% of US employees report that they are “very satisfied” with their jobs.  It is possible to do business that makes you happy and highly successful.  If you can meet both of these objectives in a single career, what’s the secret?  How can you deliberately find and produce work you love, so you don’t settle for being one of the more common 62% majority who is less than satisfied?  John Rampton outlines the criteria in his Entrepreneur.com article, 9 Keys to a Happy Career Making Millions.

Table of contents#1: Don’t Just “Follow Your Passion”#2: Do What You’re Good At#3: Do Work That’s Engaging#4: More Income Is Better, To a Point#5: Help Others#6: Work-Life Balance#7: Find Variety by Merging Education, Autonomy, and Security#8: Work with People You Like#9: Eliminate the NegativesMake Fulfillment a Top Priority, NowBook a Call to Find Out Your Next Step to Time and Money Freedom

#1: Don’t Just “Follow Your Passion”

Unfortunately, the world is filled with broke, passionate people.  Following your passion may sound like the answer to escaping a soul-crushing, mind-numbing job and finding the nirvana of purpose.  But, many well-intentioned, ill-advised people have taken the leap of faith out of a well-paying corporate job, followed their passion, became an entrepreneur, and wound up losing everything.

Source: Singularity Hub

Remember the foundational wealth principle that dollars follow value?  Rather than following your passion, instead, find what other people want, need, value, and are willing to pay for.  Then use your passion and skill set to meet that need in a better, faster, or more efficient way.  This is how to find what you love that other people love you doing. And that means you’ll be paid handsomely as well.

While passion is important to fulfillment, it isn’t everything.  Just because something is exciting and important to you doesn’t mean it will lock into the gear of economic transactions.

Instead, fulfilling work requires the intersection of your passion, mission, vocation, and profession.  This means that you are great at it, you love it, the world needs it, and you are paid for it.  Your purpose is at the center of this alignment. This is where you create the maximum impact.

So, passion isn’t everything, but it’s one part of a bigger puzzle.  You need to solve the whole algorithm to find work you love.

#2: Do What You’re Good At

When you do work that you can perform with excellence, you gain pride and a tremendous sense of accomplishment. This contributes to and elevates your fulfillment.

But where does that leave you if you feel a calling to new work?  Maybe you want to write or invest in real estate, and you haven’t yet developed skill in that area.  

When you start out, you won’t be amazing or command a substantial income.  But through committing the time and discipline to practice as Stephen Pressfield discusses in The War of Art, you’ll become a master.

#3: Do Work That’s Engaging

Engaging work is defined as work with variety, a sense of completion, autonomy, feedback and a sense of contribution that your work affects other people’s lives.

It's all about how you impact others, which is a result of how much value you provide, as demonstrated in The Go-Giver.

Stimulating work means that you are at the edge of your comfort zone.  And that means that you are continually growing.  To grow, you need to develop a growth mindset that asks, how can I become this, rather than a fixed mindset that believes, this is who I am.

#4: More Income Is Better, To a Point

So many people pursue higher and higher incomes and leave their ...

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

The ultimate goal of cash flow awareness is to save more each month.  Why? Because generously paying yourself first is the foundation of wealth creation.  With more savings, you build up capital to invest in cash-flowing assets so you can create time and money freedom.  But across all income levels, most people’s savings habits are anemic, or even on life support.  They never get ahead of their spending, so they can’t save. Every month that slips by without a good pulse on your cash flow has you veering further away from financial freedom.One remedy is to outrun the problem by making more money.  

However, making more money often comes with a higher-priced lifestyle.  Without the habit and discipline of savings in place, more income does nothing to help you save more.

The second solution is budgeting. 

But let’s face it – budgeting stinks! It’s stressful, time-consuming, complicated, messy, and usually puts you in a bad mood.  

It can seem impossible to squeeze an unpredictable life into a perfect box.  There never seems to be a good way to handle irregular and unforeseeable expenses.  

Sometimes one spouse is a spender, and the other doesn’t want to instigate conflict by bringing up the subject of tightening up.  

And the whole idea of denying yourself all the things you want seems the opposite of living an abundant life. 

Most people finally resort to some form of “bank account budgeting." Their thought is that if it’s in the bank account, it’s available to spend.  But the eventual outcome is regret and a rude awakening when you need the money, and it isn’t there.

So, instead of being the ostrich with your head in the sand, how do you commit to self-accountability and gain control of your spending?  

With cash flow awareness.

Table of contentsThis is For You, I PromiseHow is Cash Flow Awareness Better Than a Budget?What We’ll CoverWhere Cash Flow Awareness Fits into Your Cash Flow SystemThe Purpose of Cash Flow AwarenessThe Connection Between Abundance Thinking and AwarenessIf You’re Already Consistently SavingStep 1: Start with Your ValuesStep 2: Create Financial Priorities Based on Your ValuesStep 3: Track Your MoneyMake It Simple and Enjoyable Enough to Be SustainableObserver, Not CriticHow Far To Look BackBreaking Down Your CategoriesFour Types of Expenses: Tracking Your Spending by Frequency and PredictabilityStep 4: Analyze Your Spending TrendsStep 5: Discover Your Monthly Cash FlowThe Key of AveragesStep 6: Create a Spending Plan (Not a Budget) for the FutureFluid, But Direct Future SpendingHelpful Mint.com SettingsHow to Plan for Out of the Ordinary ExpensesStep 7: Ongoing Maintenance of Your Cash Flow AwarenessChecklist to Maintain Your Cash Flow AwarenessAn Evolving ProcessMake It FunThe Long-Term Benefits of Cash Flow AwarenessYour Decision Point

This is For You, I Promise

You may already be saving consistently. If so, cash flow awareness will help you approach your spending more consciously, make you feel even better about your money, and probably find even more dollars to save.

You might be in the top 5% of income earners and feel positive about the lifestyle you’ve had the opportunity to create, but still have a pit in your stomach when you think about the future. If you don’t know where all your money is going, and you want to figure out how to get from active income to passive income, this is for you.  Cash flow awareness will show you the steps to get in control and keep more of the money you make so you can make financial progress.

If you feel your income is moderate to low and you haven’t been able to save, these steps will help you shift into a mindset of paying yourself first.

And if you’re here and you’re skeptical because you’ve had a love/hate relationship with budgeting, I’ll raise my hand and say, me too!

How is Cash Flow Awareness Better Than a Budget?

Merry Christmas from The Money Advantage team!

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

When it comes to seeking out and mastering a profitable niche, Jefferson Lilly of Park Avenue Partners, a mobile home park investor, is a true leader.  Looking for a stable way to provide value and earn returns, Jefferson began analyzing real estate deals in multifamily housing across the Midwest.  What he found was perplexing, but he continued to pursue this path until he found out why.  And he’s glad he did because it led him to his life’s work and his ideal investment niche!  

Where most multifamily apartment buildings were returning 8%, a mobile home park in the same locality was paying 10%, showing that mobile home parks were more profitable. After he saw this phenomenon ringing true repeatedly in other areas across the country, he started researching to discover why they are such a better deal than apartment buildings, office, retail, or self-storage.  His discovery led to investing personally and managing investor’s capital through partnerships over the last 11 years to acquire 25 mobile home parks in 13 states.

His mission is to create wealth for his investors and to expand the supply of affordable housing.

We’ll discuss this fascinating real estate niche that’s providing an opportunity for accredited investors to earn returns in the range of 8 – 15% cash on cash.

The Definition of Accredited Investor

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

We know that a majority of our listeners and audience fall into this category and are actively looking for ways to put their cash to work earning a return in the most productive way.  If you aren’t there yet, this will be an excellent opportunity to expand your knowledge in preparation.

Where Investing Fits into the Cash Flow System

We are a community of wealth creators.  We know that it is not enough to make a great income.  Instead, you have to figure out how to keep more of the money you make, protect your money, and make more through the right investing decisions.  

Investing is part of stage 3 in the Cash Flow System.  As you build a cash-flowing asset portfolio of real estate and business, you accelerate your path to time and money freedom.  

Who Is Jefferson Lilly?

Jefferson Lilly is the founder and managing partner of Park Avenue Partners.  Jefferson is a mobile home park investment expert and educator. He is responsible for Park Avenue Partners’ strategic direction, acquisitions, and property operations. Before founding Park Avenue Partners, he co-founded Park Street Partners, a similar partnership also focused on acquiring mobile home parks nationwide. PSP’s investments are returning 8% - 15% cash annually to Limited Partners; appreciation is expected to increase returns further. 

Both personally and through his partnerships, Jefferson has acquired 25 MHPs in 13 states since 2007 totaling over $56mm in value. He started the industry’s first podcast (Mobile Home Park Investors) and the largest group on LinkedIn dedicated to investing in mobile home parks. 

Before beginning to manage investors’ money in 2014, Jefferson spent seven years investing his own capital in mobile home parks and consulting to high-net-worth families with interests in the manufactured housing industry. Earlier in his career, he held a range of consulting and sales positions with Bain & Company, Viacom, and Verisign. Jefferson has been featured in The New York Times, Bloomberg Magazine, and on the Real Money television show. He holds a B.A. from the University of Pennsylvania and an MBA from the Wharton School of Business. 

Jefferson’s favorite mobile home is the 1954 Spartan Imperial Mansion, upon which their logo is partially based. He finds the Bowlus Road Chief to be pretty appealing too.

Jefferson Lilly Conversation Highlights (Partial Transcript)

As you count down the days until Christmas, you’re also counting down the days you have before you tie up the loose ends on your fiscal year to prepare for 2018 taxes.  We’ll walk you through practical and strategic tax moves you can make to close out the books, stay organized, and save taxes.  This will help you keep more money in your pocket and best plan for next year.There’s lots of information out there. On the one hand, some of the typical advice is so commonplace, it seems like common sense. On the other hand, there may be strategies and options you may not even be aware of yet.

This can lead to financial noise, creating confusion, procrastination, and overwhelm.  Instead, we want you face the end of year empowered and proactive.

That’s why we’re helping you sift through the information to discover the strategies that align with our community’s core values and principles.  Our filter is an abundance mindset, maximizing cash flow and control, and getting your money to do the most for you.

And if you’re feeling like year’s end is a ticking time bomb with so much left to do, use these simple resources as a guide.  You may be able to implement a few changes this year to make a big difference in 2018 taxes.  Better yet, you’ll be armed and dangerous with a head start to make 2019 your best year yet!

Customization Required

Your situation and needs depend on whether you’re doing your own accounting and hiring out tax preparation, or have an accountant.  In addition, the size and stage of your business, and your plans to scale and grow matter.

We recognize that there may be some things that don’t apply to you.  That’s great!  You’ll pick up information that will help you right where you are and also with where you are going.

And if you want to consider a shift that would really set you ahead, we have a recommendation for a tax strategist at the end, who may be just what you need to minimize taxes this year and every year going forward.

Many of these strategies translate over to your personal life too, where attention and intention help you make huge improvements!

One necessary disclaimer: we are not CPAs or tax professionals.  However, we do have them on our team, because tax savings done right is a crucial part of improving our and our community’s lives.  So, make sure you talk with a tax professional about what’s right for you.

Where Tax Planning Fits into the Cash Flow System

In the Cash Flow System, you first increase cash flow by keeping more of the money you make.  Then, you protect your money.  And finally, you increase and make more money.

Tax planning and strategy to increase your cash flow is part of Stage 1, your foundation.  When you keep more of your money, you increase current cash flow.  That is what allows you to build up capital and put it to work in cash-flowing assets, because the ticket to future cash flow from assets is current cash flow from income.

Five Hand-Selected Articles to Help You Have Your Best Tax Planning Year Yet

Our team has hand-curated five helpful articles to give you the full scope of your end of year closure and preparation.  I’ll share a brief synopsis of each here.  Be sure to check out the podcast for the full discussion.

1) Five Things Business Owners Can Do at Year-End to Lower Their Taxes, by Stephen Fishman, published on NOLO

This article covered most of the typical advice you hear about big financial moves to offload cash and raise this year’s deductions.

They recommend purchasing business equipment for the deduction and the depreciation, but without a clear caution to not purchase stuff you don’t need. While this seems like it should go without saying, way too many business owners buy a new truck at the end of the year to save taxes, meanwhile bleeding out cash flow in the form of an expense they didn’t need in the first place.

The article also suggests funding retirement plans,

https://www.youtube.com/watch?v=EdACBsnfLL8

A typical whole life insurance policy won’t give you the high early cash value and long-term growth you need for Infinite Banking.  As enticing as its certainty and control are to wealth creators, it’s not enough.  You’ll need enhancements to convert your policy from a slow equity-builder into one that you can use quickly. Cash-value life insurance modifications are like custom upgrades on a standard model floorplan when you’re building a house.  These design features make all the difference between an accumulation plan and one you can actually use.

In What Kind of Policy Do You Want, Part 1, we discussed the type of life insurance we use: a dividend-paying whole life insurance contract with a mutual company that has guaranteed premiums, guaranteed cash value, and a guaranteed death benefit.  Now it’s time to step it up a notch.

High cash value upfront and long-term performance are highly achievable when you design the policy in a specialized way. This custom design includes specific funding ratios and high-performance custom modifications to a whole life insurance policy.

Table of contentsWhy You’re Shopping for a High Cash Value Life Insurance PolicyWhat We’ll CoverWhere Privatized Banking Fits into Your Cash Flow SystemFunding a Privatized Banking PolicyThe Teeter-Totter Effect Between High Early Cash Value and Long-Term GrowthHigh Early Cash ValueLong-Term GrowthMaximizing Both Liquidity and GrowthThree Types of Premium and What Each Does BestBase PremiumPaid-Up Additions RiderWhy PUAs Aren't Superior to Base PremiumTerm RiderThe Balance Between Base Premium and PUAsThe Impact of Premium Type on Dividends and Long-Term GrowthHow Dividends Impact Your GrowthThe Relationship Between Premium Type and Dividends PaidThe Ideal Funding Ratio For High Cash Value Life InsuranceCustom Design Is More Important Than the FormulaHigh-Performance ModificationsDividend OptionsWaiver of PremiumHigh Cash Value Life Insurance and Break-Even YearsNon-Negotiables vs. Minor Details That Cause ConfusionDividend RatesDirect and Non-Direct RecognitionIn ConclusionYour Decision PointBuild Your Time and Money Freedom

Why You’re Shopping for a High Cash Value Life Insurance Policy

Why are you looking for high early cash value and long-term growth in cash value life insurance?

You want to secure the advantages of safety and liquidity of your money while maximizing your growth rate.  Your cash value component won’t drop in value, and you can access it through life insurance loans.  These advantages make whole life insurance an ideal place to store cash, allowing you to be your own bank.

You’re also grateful for the peace of mind that the policy's death benefit offers.  You are purchasing a net worth that will automatically self-complete when you die, even if you don’t get to live out your wealth creation.

But rather than just setting it and forgetting it, you plan to use your life insurance while you’re alive.  You want to use your capital along the way to invest in cash-flowing projects to accelerate your wealth creation in a process known as Privatized Banking.  Instead of giving up cash each time you purchase another asset, you maintain control of your capital.  Consequently, you reap the miracle of compound interest and earn a return in two places at the same time.

This is why it’s important that you don’t just get cash value life insurance that builds cash value at some point.  You want access to lots of cash value very early on.  Today’s article will show you how that is possible.

What We’ll Cover

Today, we’ll show you how we fine-tune cash value life insurance to get it to peak performance.  This is the secret sauce behind Privatized Banking.  It’s how we dress up a cash value life insurance policy and transform it into the superhero version.

We’ll answer:

What makes cash value life insurance specially designed?

Connor Boyack is the author The Tuttle Twins, a series of a premier free market educational books for kids.  Once a web developer and online marketer, his passion transformed him into an economic, history and political philosopher and educator. Because he was perplexed by current events, he began studying history’s patterns, looking for answers to prevent us from repeating the mistakes of the past.  Through his study, he discovered the time-tested principles of free market economics, liberty, and entrepreneurship.

Connor then immersed himself in political activism, starting a think tank to change state laws.  While helping Tesla battle against the traditional car companies and protectionist laws that prohibited them from selling any cars in Utah, he began grappling with a new question.  How could he help his young children understand his work of protecting the free market?

Finding no other resources, he set out to create one for kids to understand these big philosophical ideas.  The Tuttle Twins books were born.  Now a series of nine stories that condense the ideas of liberty-minded authors such as Leonard Read, Henry Hazlitt, G. Edward Griffin, Ayn Rand, and Frederick Bastiat, the Tuttle Twins communicate big ideas in a way that everybody can understand.

Because these books are creating a movement of thinkers, we wanted to share the author’s take.

Table of contentsWhere Creating a Legacy Fits into the Cash Flow SystemWho Is Connor Boyack?Connor Boyack Conversation Highlights (Partial Transcript)The Food Truck FiascoThe Book as an Instruction Manual for Protecting the Free MarketThe Miraculous PencilConversations About Collaboration In the Manufacturing ProcessFostering Awe, Wonder, and GratitudeThe Search for AtlasThe Tuttle Twins and the Search for AtlasThe Tuttle Twins and Their Spectacular Show BusinessKids Learn Free Market Ideas Through EntrepreneurshipHow the Book Gives Young Readers a Model for EntrepreneurshipThe Tuttle Twins and the Fate of the FutureQuestions from Our AudienceWhat are Your Thoughts on Democratic Schools?Passion-Driven EducationDemocratic SchoolsWould You Consider Writing a Book About the Importance of Investing in Yourself Financially with Mutual Whole Life Insurance?Other Topics Discussed with Connor BoyackActionCreate Your Time and Money Freedom

Where Creating a Legacy Fits into the Cash Flow System

As a community of wealth creators, one of our most compelling desires is not only to thrive personally, but to leave a legacy for our children of the wisdom, principles, and character that make it possible.

Let’s look at the big picture.

In the Cash Flow System, you first increase cash flow by keeping more of the money you make, then you protect your money, and finally, you increase and make more.

This conversation will take us full circle and land in two places.

Firstly, it’s part of helping you create and solidify your own mindset, philosophy, and principles of wealth creation in the very first step of the first phase.

Secondly, it’s also part of creating a legacy and passing on the wisdom that will help our kids flourish as entrepreneurs and value creators in the very last step of the last phase.

Who Is Connor Boyack?

Connor Boyack is president of Libertas Institute; a free market think tank in Utah. In that capacity, he has spearheaded many successful policy reforms in areas such as education reform, civil liberties, government transparency, business deregulation, personal freedom, and more.

Connor is also president of The Association for Teaching Kids Economics, a nationally focused nonprofit training teachers on basic economic principles, so they are empowered and motivated to help their students learn more about the free market.

As a public speaker and author of over a dozen books, Connor is best known for The Tuttle Twins books, a children’s series introducing young readers to economic, political, and civic principles.

https://www.youtube.com/watch?v=D3Yq3m8snKk

Although Trump’s Tax Reform cut taxes in many ways, millions of Americans will see taxes increase in 2018.  The lower standardized deduction and the $10K cap on deductions for SALT (State and Local Taxes) will primarily affect those in the upper-middle to mid-upper class.   Consequently, tax planning is becoming a growing priority for an increasing population.  But for one of the most common tax-minimizing tactics, the Roth IRA, the luster is wearing thin as its limitations are becoming increasingly apparent.  In its place, the Rich Person Roth is taking center stage as a strategic tool to reduce current and future income taxes, as articulated by David Rae, in the Forbes article, Rich Person Roth: For The Most Tax-Free Retirement Income.

This article discusses how the Rich Person Roth beats a basic Roth IRA and how it overcomes the biggest risks to your financial security.  Then it opens a candid dialogue about why it isn’t for everyone.

In addition to discussing the points of this article, we’ll help you think through how best to reduce income taxes and create a future of time and money freedom.

Table of contents* Where Privatized Banking Fits into Your Cash Flow System* Why Future Tax-Free Income Is in High Demand* Tax-Deferred* Taxable* Tax-Free, or Tax-Exempt* Why the Roth IRA Falls Short* 1) Loss of Control with Limited Access* 2) Low Contribution Limits* Accumulation Insufficient to Support Future Desired Lifestyle* 3) Many Earn Too Much to Contribute at All* A Better Alternative for Tax Planning: The Rich Person Roth* What Is a Rich Person Roth?* The Rich Person Roth Works Great for Women, Too* The Benefits of Using Cash Value During Retirement* Control* Use More of Your Money and Still Leave a Legacy* Enjoy Your Money More* Reduce Future Taxable Income* Options for Turning Life Insurance Cash Value into an Income Stream* The Drawbacks to Using a Rich Person Roth and How to Overcome Them* A Better Alternative for Tax Planning*

https://www.youtube.com/watch?v=D3Yq3m8snKk

Although Trump’s Tax Reform cut taxes in many ways, millions of Americans will see taxes increase in 2018.  The lower standardized deduction and the $10K cap on deductions for SALT (State and Local Taxes) will primarily affect those in the upper-middle to mid-upper class.   Consequently, tax planning is becoming a growing priority for an increasing population.  But for one of the most common tax-minimizing tactics, the Roth IRA, the luster is wearing thin as its limitations are becoming increasingly apparent.  In its place, the Rich Person Roth is taking center stage as a strategic tool to reduce current and future income taxes, as articulated by David Rae, in the Forbes article, Rich Person Roth: For The Most Tax-Free Retirement Income.

This article discusses how the Rich Person Roth beats a basic Roth IRA and how it overcomes the biggest risks to your financial security.  Then it opens a candid dialogue about why it isn’t for everyone.

In addition to discussing the points of this article, we’ll help you think through how best to reduce income taxes and create a future of time and money freedom.

Table of contentsWhere Privatized Banking Fits into Your Cash Flow SystemWhy Future Tax-Free Income Is in High DemandTax-DeferredTaxableTax-Free, or Tax-ExemptWhy the Roth IRA Falls Short1) Loss of Control with Limited Access2) Low Contribution LimitsAccumulation Insufficient to Support Future Desired Lifestyle3) Many Earn Too Much to Contribute at AllA Better Alternative for Tax Planning: The Rich Person RothWhat Is a Rich Person Roth?The Rich Person Roth Works Great for Women, TooThe Benefits of Using Cash Value During RetirementControlUse More of Your Money and Still Leave a LegacyEnjoy Your Money MoreReduce Future Taxable IncomeOptions for Turning Life Insurance Cash Value into an Income StreamThe Drawbacks to Using a Rich Person Roth and How to Overcome ThemA Better Alternative for Tax PlanningBook a Call to Find Out How a Rich Person Roth Could Work or You

Where Privatized Banking Fits into Your Cash Flow System

Life insurance 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, the canopy of protection in your financial life.  While protecting your personal economy from the risk of loss, it also helps you keep more of the money you make and amplifies your cash-flowing asset strategy, accelerating time and money freedom. 

Why Future Tax-Free Income Is in High Demand

While tax law changes have everyone on high alert, grappling for how exactly they will be affected today, the discerning are already calculating future impacts.

To widen our view of how to handle current and future taxes, let’s talk about the three ways money set aside for the future can be taxed.

Tax-Deferred

One strategy is to find financial tools that defer a tax.  Here, the investment is made pre-tax, lowering taxable income in the year the contribution is made.

However, income taken from these accounts later is taxed at whatever future tax rates will be at that time.  Familiar accounts in this category are 401k’s, 403b’s, IRAs.

While suppressing and placing a bandage on an immediate concern, tax-deferred assets create more uncertainty for the future.  What will tax rates be at that time? How will I be impacted?  How much money will I have, how much tax will I owe, and what will be left?

Taxable

Another type of financial tool is a taxable asset.  With a taxable account, you put in dollars that have already been taxed.  As your money grows, the growth is taxable income.

Accounts like checking, savings, money markets, and securities fall in this category.

The growth is taxable each year.  In the early years, growth is small, and the taxes are fairly insignificant.

But as these accounts grow over time, the taxes due can become hefty.