The Money Advantage Podcast

Are you interested in knowing the truth about generating guaranteed cash flow with annuity strategies? Learn about the benefits and drawbacks of annuities, as well as some annuity strategies that will help you create guaranteed cash flow. Are annuities the unsung heroes of guaranteed retirement income flow, or are they just another intricate financial product that's more trouble than it's worth?  https://www.youtube.com/watch?v=gvmideJqIdQ Join us as we crack open the world of annuities. We'll be discussing how these financial tools, often misconstrued as a bad choice, can actually work in your favor to provide a stable income stream during your retirement. Hold on to your hats as we dissect the differences between variable, fixed, and fixed index annuities, revealing the various fees that come with each type.  Annuities can be a great way to secure your financial future – but make sure you understand the pros and cons of annuities (fixed annuities, deferred income annuities, single premium immediate annuities, and variable annuities) before signing up.  Tune in, whether you're an annuity advocate or skeptic, and let's debunk the myths together.  What is an Annuity?Immediate Annuities vs. Deferred AnnuitiesAnnuity Strategies for Guaranteed Cash FlowCons of Annuity StrategiesWhy Buy an Annuity? What is an Annuity? Annuities are a lesser-known insurance product that can provide cash flow in a way that’s guaranteed. These are typically intended for income later in life. To buy an annuity, you can pay a lump sum or in monthly premiums. That sum then earns interest and distributes an amount of monthly or annual income either for a specific term or for the rest of your life. This is why it’s generally a product for retirees.  In other words, you can give the insurance company money, which is guaranteed to grow as outlined in the contract. After that accumulation phase, the company then distributes your account as income to you over your specified time period.  This can be beneficial in a volatile market when you don’t want to lose money in your portfolio.  Immediate Annuities vs. Deferred Annuities When you purchase an annuity, you an either choose to receive income immediately, or you can defer that income to a later time. If you’re 75 and want an income stream now, you might choose an immediate annuity. However, a deferred annuity might be beneficial if you come into a windfall and don’t yet need an income. You can then specify at hat age you’d like to start receiving payouts. If you choose to go with a deferred annuity, the insurance company may incentivize you to keep your account with them by offering step-up credits. If your annuity is tied to an index and doesn’t increase that year, you may get a step-up credit if you don’t take any income that year. This is meant to encourage you to keep your annuity in place, rather than liquidating it and taking it elsewhere.  Annuity Strategies for Guaranteed Cash Flow [05:16] “Not only [can] having annuities enhance your equity portfolio, your investment portfolio, but it can also enhance the happiness of how a person spends their retirement.”  The advantage of an annuity is that you can sleep at night, knowing that you have a guaranteed income in retirement. There are, of course, many types of annuities with their own advantages and disadvantages. If you do choose to purchase an annuity, it’s important to have a grasp on what’s available that fits with your existing portfolio and income needs.  Below are just a few examples of annuities. Fixed Annuities The first type of annuity is a fixed annuity, which means it has a fixed interest rate upon purchase. It lasts for a designated time period, but it can be renewed. For example, if you buy a fixed annuity for $100,000 at a rate of 5.4%, you’re guaranteed to earn that rate for the stated period of time in your contract. This does compound,

Is it possible that you have areas of inefficiency in your business or cash flow that could be better used to fund IBC? It's time to discover some of the top inefficiencies in your business where you can recover excess money flowing out of your control. https://www.youtube.com/watch?v=58Ol_6iTLbc Many people have money paying for expenses that could instead build capital reserves, a warehouse of wealth, solvency and stability, access to cash, and even the funding for a buy-out or to weather an uncertain economic future ... and also still be used for the same expense. In other words, you can be more efficient with your money if you think differently. Discover the secrets to finding and freeing up money in your life and business to fund infinite banking premiums in today's insightful episode. We're sharing concrete examples, strategies, and tips that will help you save money, optimize your loans, and maximize the benefits of the Infinite Banking Concept. It's time to unlock your financial potential and run your life like a successful business! The Basics to Fund IBCHow Do You Find Money in Your Business?Structuring Loans for Increased CapitalWhat Should You Finance with a Policy?For Further Reading:Book A Strategy Call The Basics to Fund IBC If you’re a business owner and investor, you may have several streams of revenue and questions on how to use them. In this case, is there an ideal way to fund IBC policies? And how can you creatively manage your cash flows for maximum efficiency? These are important questions to be asking as you work to build your pool of capital and use it, too.  Foremost, building capital takes capital. In this case, your capital is your premiums and PUAs. When you pay them, you’re contributing directly to your cash value. If you don’t have the cash flow to fund your policy without taking on debt, you’re not in a position to start a policy. For example, if you wanted to use business assets to pay premiums, then use the cash value to pay back those assets, you’re actually doing things backward. What will happen is that you have to take a policy loan, so you’ll just be creating more and more debt that can get out of control, and adding interest on top. If you want to leverage your cash value, you want to leverage it for new assets that bring in cash value, not old assets. Otherwise, you’re just taking from yourself and reducing your reserves.  How Do You Find Money in Your Business? But what if you do have assets in your business that you can use and won’t require you to replenish those assets? That way, you can still use those first years as a growth phase, which will give you a stronger capitalization phase later on.  One way to find money in your business is to save money on taxes. You can do this, depending on the advice of your CPA, by choosing to have an S-Corp instead of an LLC, for example. This may help you to reduce your taxes, thereby giving you some extra capital to funnel into a policy. Of course, there are other tax reduction strategies that you can look into with your CPA with similar results.  [17:00] “You do need to pay the IRS what’s fair and square, but you don’t need to tip them. You don’t need to pay what’s more than necessary. So it’s about being strategic—it’s not finding loopholes, it’s using the tax code.” Another way to find money is to reduce expenses elsewhere. Many of your bills are likely negotiable, and it doesn’t hurt to try. If you have a brick-and-mortar business, many of your overhead expenses can likely be negotiated. In addition, you can raise your insurance deductibles to lower your monthly cost. You can then use the difference to accelerate your IBC savings. If an accident does occur, you’ve got capital in reserves. You can also increase your cash flow in ways that don’t have a significant cash investment, so you can use all additional cash flow for your life insurance policy.

Learn about the importance of financial habits and the 'use it or lose it' principle in the world of finance. Discover how to make Infinite Banking more automatic and maximize financial control. Dive into the necessity of continuously managing your money flow and capitalizing on the Infinite Banking Concept.

Explore the inner workings and reliability of life insurance dividends in a bad economy. Learn how dividends are calculated in life insurance and the factors that affect their amount. Understand the correlation between dividends and the 10-year treasury constant maturity rate. Compare the investment portfolios and policy loans of insurance companies. Discover the potential impact of a bad economy on dividends and gain insights on leveraging insurance when needed.

Explore the Arrival Syndrome and growth mindset in wealth building. Learn about Infinite Banking Concept, fixed versus growth mindsets, and strategies to defeat Arrival Syndrome. Challenge your beliefs, embrace continuous learning, and create a tailored financial plan with The Money Advantage.

You've decided that you want an Infinite Banking (IBC) policy. You've done the research, and you want a better place to store cash that has the benefits of safety, liquidity, and growth on cash storage. https://www.youtube.com/watch?v=1qJ8xIj5W4A What's next? What should you expect as you go through the purchase process?   In this episode, we take a deep dive into the Infinite Banking Concept (IBC) and explore the intricacies of illustrations, underwriting, and loans. Join us as we navigate the complexities of IBC and help you make informed decisions about your financial future. Insurance is a ContractDirect Recognition vs. Non-Direct Recognition Life InsuranceYour Finances Impact Your ChoicesThe IBC Underwriting ProcessPossible Insurance Rating ClassesAccelerated UnderwritingIBC Death BenefitBook A Strategy Call Insurance is a Contract [4:28] “Contracts are the backbone of any society.” Nelson Nash said this and furthermore believed that if contracts were breached, that would mean the collapse of society. This is why you can rely on your whole life insurance policy–anything that is in your contract and part of your policy design will remain true for the entire length of your policy.  Even as tax law changes and the IRS modifies what’s possible with a life insurance contract, this only affects future contracts. For example, in 1988 the IRS introduced something called a MEC limit. MEC stands for a modified endowment contract and is what a life insurance policy becomes if it’s over-funded. When you have a MEC, your policy loses all tax advantages.  This happened because people were putting so much money into their insurance and accessing that money tax-free, and the IRS wanted a slice of the action. However, thanks to contract law, MEC limits (the maximum premium you can contribute without turning your policy into a MEC) only applied to new policies. To this day, Bruce has policies from the 80s that were never subject to MEC limits.  This is an incentive to start a policy as soon as possible. You don’t know what the future holds, or how the IRS might modify the rules. You do know that you have a need for capital and a need for insurance. By locking it in today, you have more time to build capital, and you lock in all the current benefits of a life insurance contract. Those benefits cannot and will not be changed once the contract is signed.  Direct Recognition vs. Non-Direct Recognition Life Insurance If you’re ready to buy a policy, it’s worth considering whether you want to work with a direct recognition or non-direct recognition company. This determines how dividends are applied to your cash value when you have an outstanding loan.  Direct recognition companies “directly recognize” when you have an outstanding loan, and apply the dividend differently to any cash value with a lien on it. Non-direct recognition companies apply the dividend equally across your cash value, even if you have a lien on some of it. While this may make non-direct recognition seem better, there are no deals in the life insurance industry. In other words, everything is a trade-off. Direct recognition doesn’t automatically mean that cash value with a lien on it will earn less. It really means that it will be applied proportionately to the loan interest rate. And if the interest rate is much higher than the declared dividend, that portion of your cash value may actually earn a bit more. But if you intend to use your cash value often, non-direct recognition may be your best bet. The important takeaway here is that one is not leagues better than the other. After all, interest rates and dividends are unpredictable. Companies will ebb and flow. So don’t get too hung up on the little things, especially if it holds you back from making a choice. Go with your instinct, and don’t sweat the decision too much. You can always have multiple policies with different constructions.

Explore the importance of ethical capitalism and the 'Golden Rule', critique on immediate gratification culture, discuss the power of controlling capital for financial decisions, emphasize citizen vigilance in maintaining a capitalist society, and empower through valuing savings and infinite banking philosophy.

In this episode of the Money Advantage podcast, we explore how to avoid the pitfalls of leaving an inheritance and ensure you leave a positive impact on future generations through intentional wealth management and legacy planning. https://www.youtube.com/watch?v=ZXFUVVoT_6s Inheritance, a transfer of wealth from one generation to another, can be a double-edged sword. On one hand, it can provide financial security and opportunities for the next generation. On the other hand, if mishandled, it can lead to family conflicts, spoiled children, and the squandering of hard-earned fortune. We explore the insights of Dr. Lee Hausner, a renowned consultant to high-net-worth families, family businesses, and family offices, on how to avoid the pitfalls of leaving an inheritance and ensuring a positive impact on future generations. We delve into the importance of understanding the power of money, the various types of wealth present in society, and the significance of instilling the right values in the next generation of wealth holders. Avoiding the Pitfalls of Leaving an InheritanceWealth Transfer and Legacy PlanningStrategic Planning for Family LegacyCreating Successful and Prosperous FamiliesSibling Competition and Social CompetencyAbout Dr. Lee HausnerBook a Strategy Call Avoiding the Pitfalls of Leaving an Inheritance Dr. Lee Hausner's background as a psychologist in the Beverly Hills school district exposed her to the effects of different types of wealth on families. She observed first-generation entrepreneurial wealth, trust fund wealth, and industry wealth, each with its unique set of challenges and expectations. This experience, coupled with her expertise as a consultant to high-net-worth families, has given her valuable insight into the potential pitfalls of leaving an inheritance. One of the key challenges in wealth transfer is finding the right balance between providing financial security and ensuring that the next generation does not become complacent or entitled. Overindulgence and a lack of understanding of the value of money can lead to destructive behaviors and a squandering of family wealth. Dr. Hausner emphasizes the importance of raising children who are competent and self-confident, regardless of their financial situation. This foundation will help them navigate the complexities of wealth management and inheritance, ultimately leading to more successful and prosperous families. Wealth Transfer and Legacy Planning A successful wealth transfer and legacy plan requires intentional and strategic planning. Dr. Hausner suggests that families think of themselves as a business, applying the same strategic planning techniques to their family life as they would to their professional endeavors. This includes setting goals and strategies, holding family meetings, and fostering a culture of open communication and collaboration. In addition to teaching children about the fundamentals of money management, it is crucial to instill the right values and work ethic in them. This can be achieved through a combination of education, experience, and mentorship. Dr. Hausner also highlights the importance of being strategic about when and how much to pass on to the next generation. A well-planned wealth transfer will take into consideration the needs and abilities of each family member, ensuring that the resources are used productively and effectively. Strategic Planning for Family Legacy Creating a successful family legacy requires a clear vision and a strategic approach to wealth management. Dr. Hausner recommends reverse-engineering the desired family outcome and breaking it down into achievable goals and milestones. This process should involve open and collaborative discussions among family members, ensuring that everyone's needs and aspirations are considered. One of the perennial concerns in wealth distribution is the issue of equality. Dr. Hausner suggests that families should focus on giving...

Financial expert Nelson Na joins us for part 8 of "Becoming Your Own Banker" series. We explore how to save taxes with the Infinite Banking Concept using dividend-paying whole life insurance. Topics include legal plunder, taxation, triple tax advantage, and modeling successful behaviors. Join us as we unpack Nelson Nash's wisdom and learn together.

Are you shopping for the best Infinite Banking policy, but want to first make sure you have the correct policy design with a good life insurance company and a team you can trust? https://www.youtube.com/watch?v=aUwFuc7NCec Here’s the first thing you need to know: there’s no such thing as an “Infinite Banking Policy.” We only use that phrase here because it’s commonly searched, and we want to meet you where you are. But the truth is, Infinite Banking is not a product—it’s a strategy.  The vehicle we use is properly structured whole life insurance with a mutual company. But it’s not the policy alone that creates results. It’s how the design, funding, and use of that policy align with your larger financial strategy and your legacy goals. That’s where most people get off track—and where working with a like-minded team becomes essential. In this episode, we dive deep into the infinite banking concept and discuss the importance of choosing the right mutual insurance company and working with a like-minded advisor or agent team. Join us as we share our insights and experiences to help you better understand and implement this powerful financial strategy in your own life. If you want to say goodbye to second-guessing and regret, and make Infinite Banking decisions with certainty and confidence, tune in today! Building Confidence Through EducationHow to Choose the Best Insurance Company1. Choose a Mutual Company2. Look at Financial Ratings3. Do They Have a History of Dividends?4. Customer ServiceBest Whole Life Insurance Companies for Infinite BankingHow to Choose the Best Producer/TeamThe Five Tenets of IBCHow Does Your Advisor Support You? How to Buy the Best Infinite Banking Policy1. Choose Whole Life Insurance2. Paid-Up Additions3. Apply Dividends to Cash ValueCommon Mistakes to Avoid When Choosing a PolicyReal-Life Examples: The Living Proof of Policy DesignUsing Whole Life Insurance to Build Wealth and Business FreedomBook A Strategy Call Building Confidence Through Education Finances can be a tough space to navigate because money is deeply personal, and everyone has different opinions. That’s why we value providing education – because we want to give people the tools they need to build confidence and make their own decisions about money.  Confidence allows you to take action, build trust, and create a positive cycle. You learn more, become more confident, take more action, and build more trust. This simple, small shift allows you to be at the helm of your financial choices, rather than shifting responsibility off your plate completely. How to Choose the Best Insurance Company If you’re interested in infinite banking, based on our material or something you’ve heard elsewhere, you may have questions on how to do it “right.” While this can vary depending on your personal money goals, there are some general rules of thumb to follow when you buy a life insurance policy for IBC purposes. Let’s go over them together.  1. Choose a Mutual Company A mutual company means that the insurance company is owned by the policyholders. In order to benefit from dividends, this is the type of company you want to work with. As a partial owner, you get to participate in all profits. While not guaranteed, mutual companies tend to run a tight ship and make very conservative long-term decisions. You can expect them to profit.  The other option is to choose a stock company, which is beholden to shareholders. These shareholders may not even have a policy with the insurance company. This can drive stock companies to make riskier, short-term decisions that aren’t always in the best interest of policyholders. You also don’t get those dividends if they do turn out okay.  2. Look at Financial Ratings In addition to being a mutual company, you also want to work with a company that has a solid financial history. A good track record suggests that they know how to manage risks long-term and can continue to do so f...