The Money Advantage Podcast

Unlock the secrets to infinite banking in this power-packed episode. We guide you through the intricate steps of using whole life insurance as a tool to gain financial freedom, inspired by Nelson Nash's groundbreaking book, "Becoming Your Own Banker". Learn the advantages and drawbacks of this system, and pick up practical tips on finding more money to capitalize a policy and pay more premiums. This episode is designed not just for the financially savvy, but for anyone who dreams of a more secure financial future. https://www.youtube.com/watch?v=HdpC6ZiIyEM One of the greatest barriers to achieving financial success is a lack of education and understanding. Let's break down these walls together as we discuss the stigmas and misconceptions surrounding the Infinite Banking Concept. We delve into Nelson Nash Institute's ambitious mission to broaden awareness and comprehension of infinite banking. Relying on the right people and the right knowledge will guide you towards a more solid financial standing. Imagine being able to finance multiple items like cars or even a mortgage through infinite banking. In this episode, we shed light on the infinite possibilities of using your income and assets to fund more policies. We explain how whole life insurance can be your stepping stone to accumulate wealth and how you can make your financial dreams come true. We also stress the importance of consulting with experienced advisors to get the most value out of your policies. So come on board and take control of your financial future with us. It's time to break free from financial constraints and build a plan tailored to your unique needs. Your Income Should Match Your PremiumHow Policy Design Affects PremiumMEC LimitsThe Value of Long-Term Thinking to Pay More PremiumsBook A Strategy Call Your Income Should Match Your Premium This is what Nelson Nash believes is the ultimate goal for someone practicing IBC. And yet, no one starts out at this level—it’s not possible. You’ve got to start where you’re able and slowly build your way up, increasing your premiums by increasing your portfolio of insurance policies over time.  The first reason you can’t get all of your income running through a policy is because the insurance companies place factors on your income that limit how much insurance you can buy. This is because your death benefit acts as income replacement, and is therefore a factor of your income. If you’re aged 18-35, you can get a death benefit of 35 times your income. To give you a snapshot, from age 46-50, you can get 20 times your income, and from 66 and up you can get 5 times your income.  This factor decreases because your number of remaining working years (at least by typical standards) is decreasing. And since insurance covers your income, the insurance companies are only looking at how much income you would earn in these assumed working years. All of this is a part of the Human Life Value calculation, which is essentially your economic replacement value.  How Policy Design Affects Premium The way your agent designs a life insurance policy will also impact your premium. Of course, some factors you cannot change—your age, health, and other income will contribute to the amount of premium you pay relative to your death benefit. However, an agent can design your policy to be structured with a blend of base premium and PUAs that can allow you to contribute even more premium to your policy.  [27:35] “One reason for why you’d want to put more premium dollars into a life insurance policy is if you realize that if I put a hundred dollars a month into a policy and that will earn me dividends and interest, and when those dividends are paid back into the policy I will earn dividends on those dividends. That’s going to allow me to have that compound growth over time that is going to be a tremendous wealth builder over decades and over generations. And I want that kind of generational wealth-building too...

Join us on an enlightening journey with our guest, Becca Wilhite, a certified IBC practitioner, as we explore her personal path into the world of the Infinite Banking Concept and the IBC Practitioners Program. From a basketball player to a worship leader, Becca's eclectic background is fascinating, and her initial skepticism towards life insurance is something many of us can relate to. We share how she overcame her doubts and discovered the power and potential of life insurance through extensive research and experience. https://www.youtube.com/watch?v=HU5uSEWjflA In our enlightening conversation, we get down to the very basics of the Infinite Banking Concept, debunking myths and misconceptions about life insurance. We shed light on the importance of capitalizing and the surprising flexibility of premium payments. Not to mention, our examination of the Dave Ramsey approach and how it has influenced people's beliefs about money and insurance. And trust us, there's more to this journey than meets the eye.  What's more? We also discuss how Infinite Banking can be used practically in everyday life, from paying off debts to buying homes and cars, and even saving for your children's future education. Becca and our co-host Cole share their insights and experiences, showing us that Infinite Banking is not just a financial strategy, but a way to reclaim financial freedom. So, get ready to challenge your beliefs about money and discover a new perspective with us. Let's take this enlightening financial journey together! Introducing Becca WilhiteThe Problem with the Dave Ramsey ApproachWhy Whole Life Insurance for the Infinite Banking Concept?What is the Hardest Part About Life Insurance Education?Paying InterestThe Infinite Banking Concept is a Way of LifeBook A Strategy Call Introducing Becca Wilhite Becca didn’t always want to be an insurance agent. Before that was even an option to her, she was a basketball player, an avid traveler, a teacher, and even a worship leader. Insurance wasn’t on her radar. When some friends got into whole life insurance, she couldn’t be LESS interested. After all, she was also a huge Dave Ramsey fan. Finally, she decided to go to one of the presentations, if only to protect her friend from making a bad financial decision. And that’s where Becca’s path changed drastically.  [04:35] “I went with my guard completely up, ready to just pick this thing apart. But what I found instead was [that] I never knew that life insurance could do that… So it made me curious.” Armed with a dose of skeptical curiosity, Becca started to read books, like Becoming Your Own Banker, that would help her understand. It wasn’t because she was totally on board yet—she was still determined to “expose” the truth, certain that Dave Ramsey couldn’t be wrong.  [05:46] “The more I read, the more I studied, the more interested I got. [I was thinking], this is so different from the status quo, this is so different from what we’ve been taught. I don’t think it’s wrong anymore.” This led to Becca opening her first life insurance policy and working with an IBC life insurance agent. However, Becca was still pretty “green,” as she puts it. She didn’t just want to have whole life insurance, she wanted to know how it works and learn more. So Becca reached out to The Money Advantage about mentorship opportunities and found her way onto Bruce’s calendar.  The Problem with the Dave Ramsey Approach Dave Ramsey is certainly a person with conviction, and we don’t want to downplay the good that he’s done for people. Many people struggle with debt, and his approach is helpful. However, Dave also tends to parrot a lot of things that simply aren’t true—about mutual funds, which is what he recommends, and about whole life insurance. And this can be detrimental to people who could really benefit from capitalization more than anything.  One of Dave’s common talking points is that mutual funds can offer an uninterrup...

Want to see firsthand how financing with Infinite Banking will help you come out ahead? https://www.youtube.com/watch?v=E8vTK1dhZWU Get ready for a mind-shift as we journey through the concept of infinite banking, as presented in Nelson Nash's groundbreaking book, Becoming Your Own Banker. We promise to challenge your conventional thinking about storing capital and show you a more profitable way of managing your money. This episode uncovers the benefits and nuances of this method, contrasting it with five different ways of purchasing items and revealing why the Infinite Banking Concept could be the game changer you need. The heart of this episode is a detailed examination of infinite banking, where you play multiple roles, from the policyholder to the depositor, customer, and owner. We illuminate the advantages of this system, using the example of financing a car purchase over 44 years. By comparing this with leasing, bank financing, cash, CDs, and whole life insurance, we uncover the superior potential of the infinite banking system. We highlight not just the numbers but a fundamental, more profitable shift in thinking. Lastly, we delve into the nitty-gritty of capitalizing life insurance policies. This method stands apart from other methods and requires discipline and long-term thinking to see uncommon results. We stress the power of capitalizing and how it can enable you to secure static payments for large ticket items and a robust future. This episode is all about unlocking the incredible potential of thinking like a business and understanding the key players in the game: the policy owner, the life insurance company, the dividends, and the death benefit. Tune in, and let's change your financial future together. Join us for this discussion of life insurance, infinite banking, and building wealth! powerpress] Rethink Your ThinkingNelson’s Car-Financing StrategyWhy is IBC So Effective for Car Financing?Other Methods of Financing:Book A Strategy Call Rethink Your Thinking [05:20] “IBC is a way of life. It’s not something that you’re just going to try.” In order to execute an infinite banking strategy, you have to be willing to completely rethink your thinking. IBC is about storing capital—that’s something you’re already doing, regardless of your background. Whole life insurance is simply the vessel for storage, and by rethinking what capital storage means to you and what it can do for your life, you’ll be able to create life-changing financial strategies.  IBC isn’t magic. It’s just strategy, and you can benefit from it by being receptive to learning new things and challenging your existing worldview about money.  [07:40] “Remember, this is about the human condition and changing your human condition. That is more important than the numbers.” Nelson’s Car-Financing Strategy In this instance, we want you to rethink your thinking about what it means to finance purchases. In this case, we’ll talk about car financing. There are many opinions on how to do it—pay cash, do a short-term loan, etc. In Becoming Your Own Banker, Nelson Nash shares his strategy for financing a car every four years. The basis for this strategy is, of course, whole life insurance, which provides your pool of capital. The advantage of financing via policy loan is that you can set your own amortization schedule, and you can buy a car without losing the ability to earn interest and dividends on the full amount of your capital pool. This not only puts you in complete control of your payment circumstances, but it also makes your banking system more efficient.  Why is IBC So Effective for Car Financing? What makes whole life insurance so efficient? The answer is opportunity cost. Opportunity cost refers to the cost of one financial decision over another. When you pay for something in cash, you lose the ability to invest that cash somewhere else. So not only are you losing the initial capital,

Have you ever paused to ponder the legacy you’re creating, the inheritance you’re accumulating, or the lasting impression you’re leaving behind? The question of whether you should leave an inheritance often brings up complex emotions and practical concerns. The thought can be heavy, even daunting – but it’s a conversation worth having. https://www.youtube.com/watch?v=z4jwxj6lMEQ With a focus on infinite banking and the inevitable death benefit that will be left to your heirs, we venture into the complex terrain of legacy and inheritance. For some, this is a familiar landscape, for others, it’s a concept that’s met with conflict. Either way, this episode aims to shed light on the obstacles that accompany the journey of leaving an inheritance. Looking beyond the immediate, we explore the significance of long-term thinking when it comes to your finances. Drawing wisdom from Proverbs 13:22, we discuss the idea that a good person leaves an inheritance to their children. This principle, when applied to financial decisions, fosters informed choices that benefit not only you but future generations as well.  With the help of Nelson Nash’s five principles for creating a robust banking system, we delve deeper into the impact of long-term thinking on the process of wealth accumulation and how money, neither good nor bad, is merely a tool that magnifies one’s character. If you’re using Infinite Banking, you’re automatically building an inheritance as well. But inheritance is an emotional word. Maybe you’re opposed because it creates problems, feels like it’s too difficult, impractical, or overwhelmed by how to do it well. Tune in as we talk about long-term thinking, generational wealth, and what’s really best for your kids. What You'll LearnHere's what we'll explore together:How Infinite Banking Leads to Legacy3 Reasons to Leave an Inheritance1. The Bible Directs Us to Leave an Inheritance2. Long-Term Thinking Helps Us Make Better Decisions3. An Inheritance is Actually Good for Your KidsSome Common Inheritance Myths"Inheritance Always Spoils Children""Inheritance Creates Lazy Kids""It's Better to Spend It All During Your Lifetime""Inheritance Planning is Only for Old People"Book A Strategy Call What You'll Learn Here's what we'll explore together: How Infinite Banking automatically builds your legacy - Why this strategy creates inheritance with minimal effort Biblical foundation for leaving an inheritance - What Scripture teaches about generational wealth transfer Why long-term thinking transforms your decisions - How inheritance planning makes you a better steward today The truth about money and character - Why inheritance helps rather than hurts your children when done right Practical steps for preparing your heirs - How to raise children who can handle wealth responsibly How Infinite Banking Leads to Legacy Legacy: it’s the impact you leave behind. For many people, legacy is about what mark they make on the larger world. It’s what people remember them for: their memory. However, legacy can also be financial, and can impact your family not just for a generation, but for many generations when done properly.  The wonderful thing about Infinite Banking is that with it, you’re actually creating your legacy in the background with little effort.  This approach to leaving an inheritance with purpose means you're building wealth while you live and automatically creating a legacy through life insurance for when you're gone. While you’re building cash value, you have the death benefit waiting in the wings to be paid to your heirs. This financial legacy is the most efficient way to pass wealth from one generation to the next because you lose as little as possible to taxes, fees, and creditors. Meaning that you can keep your money in the family and provide a basis for the next generation to grow their wealth beyond what you accomplish in your lifetime.

Prepare to unravel the mystique behind funding and overfunding life insurance, and the empowering concept of becoming your own banker. This episode holds the key to understanding how to fund a life insurance policy, maximize its cash value, and reap the benefits. Our human-centric approach puts you, the listener, at the forefront as we examine how to expand your contract and build additional ones to create your own holistic financial system. https://www.youtube.com/watch?v=0vyR5l4w3Wo We dive right into the heart of constructing a life insurance contract that prioritizes both cash value and death benefit maximization. We lay bare the intricacies of balancing ordinary life, term, and single premium contract components, aiming to achieve the optimal cash value to death benefit ratio. We also confront the challenges of adding a single premium paid-up addition to a contract and the complications that arise when human life value is exceeded, all in the pursuit of financial freedom and security. Lastly, we explore the evolution of universal life insurance over the past quarter-century, with a special focus on its transformation following the 2001 stock market crash. We scrutinize the allure of universal life, index universal life, and variable universal life, revealing their potential pitfalls and unpredictability.  Before we sign off, we arm you with a list of recommended readings to further your understanding. Included is Nelson Nash’s enlightening book, Becoming Your Own Banker, as we champion the importance of financial literacy and independence.  Join us for this insightful look at overfunding life insurance, infinite banking, and gaining financial control! Why “Overfunding Life Insurance” Isn’t Technically AccurateWhy “Overfunding” Misses the Heart of Infinite BankingThe Importance of Policy DesignBenefits of Overfunding a Life Insurance PolicyHow Long Should You Fund a Policy?What if You Want to Shorten Your Payment Window?What is Reduced-Paid-Up?Real-Life Results Why “Overfunding Life Insurance” Isn’t Technically Accurate You may hear the phrase “overfunded life insurance” used a lot—especially in conversations about Infinite Banking or high cash value strategies. It’s catchy. But it’s also misleading. The truth is, life insurance policies don’t have a “maximum” like most people assume. What they do have are funding limits set by the IRS. These limits determine whether a policy maintains its tax-advantaged treatment—or becomes a Modified Endowment Contract (MEC), which changes how the money inside the policy is taxed and accessed. So when people say “overfunded,” what they usually mean is:“Efficiently max-funded—up to the IRS limit—without triggering a MEC.” In reality, a well-structured policy is: Intentionally designed for both early liquidity and long-term growth Compliant with tax rules, so it retains all the advantages of life insurance Strategically aligned with your goals—not just throwing money at a contract This isn’t about cramming in as much as possible. It’s about funding with wisdom—within the rules, and with a long view toward legacy. Why “Overfunding” Misses the Heart of Infinite Banking The deeper issue with the term “overfunding” isn’t just technical—it’s philosophical. Too often, the word leaves people believing that high early cash value is the point of Infinite Banking. But that’s not what the concept is about. Not even close. Infinite Banking is a long-term, generational strategy based on ownership, discipline, and control. It’s about building a system that expands opportunity and multiplies wealth over time—not extracting value as quickly as possible. If you truly understand the principles of IBC, you’re not aiming to “overfund.” You’re aiming to optimally fund—in a way that matches your current cash flow, future opportunities, and the expansion of your system over time. That means designing a policy with the right balance of: ...

Are you a new agent or looking to join the insurance industry, and wondering exactly just how and where to get started? https://www.youtube.com/watch?v=R9HQ313aNS0 In today's podcast, Bruce and Rachel will help you know how to set up your business, how to get licensed, and what you need to know about joining an insurance IMO or a life insurance FMO, or better yet why you should not join an IMO. This episode promises to help you unravel the multiple layers of the insurance industry—especially useful if you're an agent kick-starting your career or a business owner considering your options in the field. We tackle the complex question of whether to join a general agency, an independent marketing organization (IMO), or a field marketing organization (FMO). Get ready to absorb invaluable insights that will help you make your mark in the insurance landscape. So, let's embark on this enlightening journey together! What Happens After New Agent Licensing?What is a General Agency?What is an IMO?First StepsResourcesBook A Strategy Call What Happens After New Agent Licensing? After you get licensed to sell life insurance, you have to get appointed with a life insurance company to write contracts. You can do this through a general agency, or you can choose a more independent route.  The problem is that most newly licensed agents can’t just call up an insurance company and get appointed. The insurance companies won’t agree, because they don’t want someone with no experience selling the product. After all, they don’t know whether this person can write good business, or how they’ll represent the product to clients. It’s safer for insurance companies to appoint new agents through an agency or an organization that can provide training and support.  What is a General Agency? [05:50] “A general agency is a person or entity that has already had the experience. They get appointed with an insurance company to sell their products, and then you can get appointed under them. And they, supposedly, are going to help you along in the business.” Often, this general agent or agency is only appointed with one insurance company, although it’s possible for them to be appointed with several companies. This can be one of the best ways to get into the industry because the agent already has a direct relationship with the insurance company and with you as well. This means they have a more vested interest in your growth and can be a real mentor to you. What is an IMO? IMO stands for independent marketing organization and is one kind of organization that you can get appointed to as a new life insurance agent. These are also called field marketing agencies, or FMOs. These organizations do a lot of marketing in order to get agents, and you often don’t have a direct relationship with the agent at the top. These organizations are less concerned with how you fit into the company culture and may value quantity over quality. This can be an incredibly frustrating way to start your journey if you don’t yet know the ropes. On the other hand, you might have a lot more freedom to run your business the way you desire. You may also get some training and marketing solutions that can help you get off your feet.  However, it’s known that marketing companies may keep bonuses from the insurance company, and offer less-than-favorable compensation structures for agents. In other words, it’s possible you might get less money per contract through a marketing agency.  First Steps After you figure out how you want to get appointed with a life insurance company, you want to think about setting up your business. You don’t necessarily need to set up a business entity, however you do want to set up a different bank account to collect your revenue. It doesn’t have to be a business bank account, it can be a personal account. You want to keep it separate.  This will help you in the long run, especially in tax season. Then,

Get ready to rethink your thinking about the cost of life insurance and, more importantly, the process of Infinite Banking. Our journey leads us to insights from Nelson Nash's book, giving us a fresh look at how to balance life insurance and the Infinite Banking Concept. We'll tackle the life insurance company's pricing strategy and discuss how the process of creating an entity for Infinite Banking works. https://www.youtube.com/watch?v=x-hjCfhC_ew Our exploration doesn't stop there! We delve deeper into the Commissioner Standard Ordinary Mortality Table and its role in life insurance pricing. By examining the thrilling world of actuarial science, we'll understand how mortality tables are updated using data collected from millions of lives. We'll discuss how aspects like age, gender, health, and lifestyle habits are considered when setting the price of life insurance. Furthermore, we'll delve into why having life insurance beyond the traditional retirement age is crucial and how part-time work can be a significant advantage in this context. Join us for this in-depth discussion and learn more about life insurance, Infinite Banking, and their financial implications! Creating Your Banking EntityLife Insurance UnderwritingLongevity and Life InsuranceBuy, Don’t Rent: The Cost of Life InsuranceBook A Strategy Call Creating Your Banking Entity At the crux of Becoming Your Own Banker, as the title suggests, is that you are going to become your own banker. Not your own bank. Therefore, you need to establish a banking entity outside of yourself. And what Nelson believed to be the ultimate place to do this was whole life insurance. Primarily because the policy loan provision makes it perfectly structured to leverage your capital as bankers do. So if you want to establish your banking entity, you need to buy life insurance. Life Insurance Underwriting First and foremost, life insurance, like all insurance, is about mitigating risk. For you, the person buying the insurance, you’re mitigating the risk of not living long enough. If you don’t, the life insurance company will pay money to your loved ones so that they are cared for financially in your absence.  This means that insurance companies need to be cognizant of their customers’ mortality so that they don’t overextend themselves. If companies insured anyone and everyone, they’d quickly go bankrupt paying death claims on people who died too soon. Since death is guaranteed, the insurance company is insuring people who are unlikely to die too soon. That way death claims become manageable because they’re more likely to be accidents or surprises in the early years.  To ensure that policyholders are likely to have a long life ahead of them, insurance companies require underwriting. This includes a health exam and lifestyle questionnaire that companies can use very accurately to predict longevity. You’ll get a rating, which determines your eligibility. The better the rating, the better the premium you can get for your death benefit.  [19:50] “They know how many people of certain health will pass away at certain ages. They do not know who. So [your rating] is in no way the insurance company saying ‘I’m God and I know exactly when your days are numbered and here’s the day that you’re going to pass away.’ They do not know about your life.” Longevity and Life Insurance Many people think of retirement and life insurance as related. If you stop working and earning an income at age 65, then you don’t need insurance to protect your income anymore. While this may satisfy some people, the truth is that your need for insurance doesn’t stop at retirement, nor should the retirement benchmark really be 65. If you live to age 60, your life is likely going to be much longer than you think. That’s because the longer you live, the longer you can expect to live, thanks to actuarial science. And because you can expect to live many more years,

Ready to gain a new perspective on how interest rates affect the economy? What about how interest rates and whole life insurance relate to each other? Let us illuminate Nelson Nash's wisdom on adopting a lifestyle that resonates with the Infinite Banking Concept without stretching yourself too thin. We also stress the need to take a panoramic view of your financial situation and the significance of long-term thinking. https://www.youtube.com/watch?v=LLz8bJJh4iA Finally, we will be your sherpa as we climb the mountain of financial control and self-education. We'll explore why people often settle for financial misery and resist investing time to learn wealth-building techniques or modify their habits. We'll also highlight the value of understanding the concept of Whole Life Insurance to maximize its benefits. Prepped for this journey? Join us and be prepared to expand your financial knowledge and planning prowess. How Does Whole Life Compare to Other Assets?What Nelson Says About Whole LifeAre You Afraid to Capitalize?Dividends, Interest Rates, and Whole Life InsuranceLife Insurance IllustrationsBook A Strategy Call How Does Whole Life Compare to Other Assets? [02:02] “The thing that people don’t realize is that as you devalue currency, interest rates tend to go up. And when interest rates tend to go up, then dividends follow. Historically, they’ve always followed.” So, while people expect their assets to be devalued in such an inflationary environment, life insurance does the opposite. This is mostly because insurance company’s investments are heavily driven by bonds, so their profits follow the Federal interest rates. And even if insurance policies are slow to adopt these high interest rates, you can rest assured that the mutual insurance companies will get your money to you. And in the meantime, you’re not losing money.  It’s important to remember that the value of whole life insurance is going to unfold over your whole life. In other words, it’s not an asset you buy today and get rich from. It’s an asset you buy today that allows you to have more peace of mind, and make more strategic choices over the course of your life, all while building your cash reserves. Twenty years from now, you’ll be glad you started as soon as possible, and may even wish you started twenty years sooner.  The best time to get started was years ago, but the second best time is today. We don’t have time machines to change the past, but by starting the process today, you’re going to get the maximum benefits possible from this point forward. So don’t be afraid to just make the choice. Your future self will thank you. What Nelson Says About Whole Life Infinite banking is simply a concept or a strategy that you can apply to your usage of whole life insurance, in order to be a more efficient steward of the asset. That being said, Nelson Nash knows what it takes to be a good steward and a good IBC practitioner, so it’s important to look to his guidance when in doubt.  One of the most important things Nelson says is to think long-term. If you apply short-term strategies to a long-term product, you are not going to get the results that you desire. Instead, you’ll end up burning through your money and you won’t have it when you really need or want it.  That being said, Nelson also says not to be afraid to capitalize, or use, your cash value. It’s there for you to use. The balance is in making decisions based on long-term benefits, like having a repayment strategy in place and/or capitalizing on cash-flowing investments that will create more wealth for your family.  Are You Afraid to Capitalize? If you’re going to capitalize on your policy, you’ve got to have capital. You build capital by funding your policy. And while PUAs are a part of that, you don’t want your ratio of base premium to PUAs to be too low. This can often be an excuse for people NOT to fund their policy each month,

Ever wondered how the Infinite Banking Concept (IBC) can protect your family and boost your business? That's exactly what our client, Marcus, shares in this enlightening episode about using IBC for business. Since 2017, Marcus has leveraged the IBC to support his ventures, from real estate and flipping properties to running two unique franchises - HOTWORX and Destination Athlete. Get inspired as he lays bare his journey from the Navy to becoming a successful entrepreneur. https://www.youtube.com/watch?v=gCU8diqIspU While we navigate Marcus's intriguing IBC journey, we'll also dive headfirst into the world of franchise ownership. Marcus gives us a front-row seat to the realities of owning two franchises, the challenges he faced, and how IBC has been an invaluable tool in his business arsenal. He shares insights about thinking long-term when using IBC and the significance of Key Performance Indicators (KPIs) in pinpointing growth areas. An intriguing highlight is how he cleverly utilized the death benefit as collateral for an SBA loan! Wrapping up our conversation, we explore the nitty-gritty of insurance policies. Marcus weighs in on the age-old debate between whole life and term policies, stressing the importance of understanding the risks and benefits of each. He also shares his experience with buying additional PUAs and how these steps have maximized his benefits. Listening to this episode will equip you with a wealth of knowledge, not just about the IBC and its potential, but also about the ins and outs of entrepreneurship, business growth, and smart financial planning. Tune in to find out how IBC for business works! Getting Started Using IBC for BusinessMaking Your Own Terms with IBCThe Death Benefit is CriticalWhole Life vs. Term InsuranceOne Multi-Purpose AssetBook A Strategy Call Getting Started Using IBC for Business Many roads lead Marcus to where he is today, though most notably, his IBC journey began when he decided to look beyond the insurance offered to him through the Navy. He wanted something more than term, and maybe even something that would be advantageous on his wealth-building journey as a real estate investor as well.  He stumbled across IBC and some podcasts on the matter, and began to research what a whole life insurance policy could do for his family. In 2017, he began his first policy and has used it many times since then. So even in the early accumulation phase, his policy has created value for his family.  While he hasn’t yet used his policy for long-term rentals, the first two moves he made were fix-and-flips. He’s also used the cash value as collateral for an SBA loan to franchise a HOTWORX, a vehicle for his wife, and even funds for a Destination Athlete franchise, demonstrating the breadth of options cash value can provide.  [05:37] “I’ve always paid it back as soon as that equity comes back in. So pay it back, then reuse it again. But if any bit is deployed, I like to pay it back down to zero before I use it for anything else again.”  Making Your Own Terms with IBC What makes IBC function well, and what Marcus demonstrates so avidly, is being an “honest banker.” In the same vein, you might hear us say, “Don’t steal the peas.” The sentiment behind both phrases is that you’ve got to be responsible with your money. And when you take a policy loan, you want to repay it. This is the best way to replenish your capital and use it again.  While you certainly don’t have to, it’s this mindset of good stewardship that prevents problems down the road and ensures that your policy keeps running smoothly. Marcus’ own family uses their cash flow from the assets that they purchase in order to replenish their capital first, then they experience the benefits of that cash flow second. This allows them to accelerate their asset base early on because they’ve got the cash value free to re-invest.  [08:33] “That’s one of the things I love: you can make your own terms.

When planning for retirement, one of the biggest fears people face is outliving their money. What is a lifetime annuity? Simply put, it's a financial contract that guarantees you'll receive income payments for the rest of your life, regardless of how long you live. By popular demand, we will be continuing our conversations from last week on annuity strategies! This time, we are joined by special guest Joseph DeFazio! Joe is a seasoned financial educator and will bring a fresh perspective on lifetime annuity income and how annuities can benefit your financial life! https://www.youtube.com/watch?v=YtZbQx8qVXc If you're interested in guaranteed lifetime income, then this video is for you! We'll discuss the different types of annuities and explain the basics of lifetime annuity income. Annuities as a Form of Risk TransferHow to Structure Your AnnuityImmediate vs. Deferred StartPayment Structure OptionsSingle-Life vs. Joint-Life CoverageAdditional Guarantee OptionsReal-World Example: Single Retiree vs. CoupleWhat is a SPIA? (Single Premium Immediate Annuity)The Appeal of SimplicityWho Should Consider a SPIA?Who Should Consider Annuities?When Annuities Don't Make SenseLifetime Annuity IncomeReal-World Example: Kathy's AnnuityLifetime Income Annuity Pros and ConsThe UpsideThe DownsideLifetime Annuity Income — How Payments WorkHow a Lifetime Annuity Fits into Your Retirement PlanBook A Strategy Call Annuities as a Form of Risk Transfer [11:10] “An annuity is a private contract that completely transfers the risk of outliving your money to the insurance company in exchange for a premium payment. The insurance company uses bonds and [then] layers on actuarial calculations, actuarial science, that pools the risk so they can guarantee an income stream for as long as your contract specifies.” When you buy a lifetime annuity, you're basically handing over your biggest retirement worries to the insurance company. They take on the risk, and in return, they promise to pay you for life. In other words, an annuity is the inverse of whole life insurance, which transfers the risk of not living long enough to the insurance company (in exchange for a premium). Because insurance companies manage the risk of living too long AND not long enough, they’ve created balance. So what risks are you actually transferring when you purchase a lifetime annuity? There are three big ones that keep retirees up at night: Outliving retirement savings - What if you live to 95 and your 401(k) runs dry at 85? With a lifetime annuity, that's the insurance company's problem, not yours. Market volatility impacting income - Market crashes don't care if you're 75 and need your monthly income to pay for groceries. Your annuity payments stay the same regardless. Inflation erosion - This one's trickier with fixed annuities since your payments won't increase, but some annuity options do include inflation adjustments.  How to Structure Your Annuity There are two phases to an annuity: the accumulation phase and the annuitization phase. During the accumulation phase, you’re funding the annuity, and you can choose either a fixed rate or variable rate, both of which have their pros and cons. When you're looking at a life income annuity, you'll find there are several ways to set it up depending on your situation. Here are the main choices you'll face. Immediate vs. Deferred Start In the annuitization phase, one of the choices you must make is whether you want your benefit now or later. If you choose to start receiving your benefit within 13 months, that’s called an immediate annuity. Any time after that is considered a deferred annuity. Think of this as the "when" decision. Need income right away because you're already retired? An immediate annuity starts paying you within a year. Still working and want to let your money grow? A deferred annuity lets you wait and potentially get larger payments down the road.