The Money Advantage Podcast

Have you heard about the Infinite Banking Concept and want to learn more? Or maybe you’re already using Infinite Banking but would like to be able to explain it better. Today we’re unpacking the question: What is the dividend?  https://www.youtube.com/watch?v=5yL_jW4q48E If you’ve ever wondered how the cash value grows through dividends and how life insurance dividends differ from other types of dividends… tune in now! Table of contentsWhat is the Dividend?Why Do I Need a Mutual Company for Infinite Banking?How Does the Dividend Grow My Policy?How Does the Dividend Relate to the Guaranteed and Non-Guaranteed Policy Cash Value?What Income and Expenses at the Life Insurance Company Determine the Dividend Rate?Why Shouldn’t I Compare Companies?How is the Dividend Applied to My Policy?Can Dividends Change in the Future?When Do I Receive Dividends?Why Are Dividends Applied Differently Amongst Policyholders?What is the Best Option for Infinite Banking? What is the dividend?Dividends are the distribution of a mutual life insurance company's profits to its whole life insurance policyholders. Mutual companies declare their dividend rates annually. What is the Dividend? Dividends are the distribution of a mutual life insurance company's profits to its whole life insurance policyholders. Mutual companies declare dividends annually. The IRS defines it as a "return of premium." This, however, is how the IRS can classify why dividends distribute tax-free.   Why Do I Need a Mutual Company for Infinite Banking? When you’re with a mutual company, you’re participating in the company's profitability via dividends. When the company profits, it’s going to benefit you because you're a policy owner. This means you want the company to be as profitable as possible. To recap an earlier episode of our infinite banking series, policyholders are partial owners of mutual companies. Stock companies, on the other hand, are owned by stockholders. In the latter scenario, companies will act in the best interest of the stockholders, even if it’s not in the interest of policyholders. Choose a mutual company to get dividends and work with a company that acts in your interests.  How Does the Dividend Grow My Policy? Dividends are one of the major drivers of growth in a policy. The cash value increases in three ways: natural equity by paying premiums, the guaranteed interest portion, and dividends. While the latter is not guaranteed, they are highly anticipated.  How Does the Dividend Relate to the Guaranteed and Non-Guaranteed Policy Cash Value? On a life insurance illustration, there are columns representing your guaranteed interest growth and the non-guaranteed growth they project you will receive. So while the former is what you can expect no matter what (since it’s guaranteed), the latter is the growth you can anticipate.  Additionally, the non-guaranteed column on an illustration will not show any dividends applied at all. Therefore, it’s a highly inaccurate way of looking at a policy illustration. Most mutual companies have paid dividends every year for the last 100 years or more. Another benefit is that once companies pay it out, it becomes guaranteed. In other words, once the floor of your policy increases, it cannot decrease.  What this means is that life insurance illustrations become inaccurate every year. Since both the guaranteed and non-guaranteed columns adjust to represent what actually occurs, and the declared dividend changes each year, the projections inevitably shift. Yet they never decrease from the “floor” of your policy.  What Income and Expenses at the Life Insurance Company Determine the Dividend Rate? Dividends are profits paid to policyholders. However, they are declared and applied after other income and costs are accounted for.  So, for example, a life insurance company has to account for payroll expenses, agent commissions, and mortality costs (how many people died).

Want to get billionaire investing strategies and learn how to model the successful few? If you want to know how to invest like a billionaire, you'll want to pay attention to our guest Richard Wilson. https://www.youtube.com/watch?v=P4792l4CVsU Today, we’re talking with Richard Wilson, CEO and Founder of the Family Office Club. Richard has helped create and formalize 100+ family offices. He counts a shark from Shark Tank, several billionaires, many REITS, and 500+ high Net Worth investors as clients. He works with clients through InvestorClub.com and Doctor’s Investor Club where he helps them access top screened direct investments. Richard’s 18-person team operates multiple media platforms including Dentist Investors, LLC, InvestorResidences.com, Billionaires.com, and CommercialRealEstate.com. If you’re looking for insights, strategies, tips, and secrets for how to invest like a billionaire… tune in now! Table of contentsLifelong LearningFind Your Target and LearnHow Learning Leads You to Invest Like a BillionaireMental Models that WorkWhy Deal Structure is Critical to Invest Like a BillionaireContact Richard WilsonAbout Richard WilsonBook A Strategy Call Lifelong Learning [6:20] Bruce: I’ve noticed that really high net people—not just billionaires, but hundreds-of-millions millionaires—are lifelong learners, and they’re not the brash type of flamboyant people with a lot of energy. They are actually very pensive, and they actually listen, and they choose who they listen to very carefully. They’re always learning; lifelong learners. And I think that is probably why they’re able to amass the kind of wealth they are.” [7:45] Richard: “[Charles Munger] talks about how over your life to be successful you need to collect a hundred plus mental models of things that work for your industry. And you might try on an idea from someone and maybe it doesn’t work well for you and your business, or not right now, and you may use that model later. And several times in my business I’ve seen a model that I want to use sometime, and I might use it three to five or seven years later. But when I see a really smart model, I’ll take note of that. Then I’m collecting these models and stacking them on top of each other. And that’s really how I grow my business.” Find Your Target and Learn [8:25] “Who would [business students] like to learn from? Well, it would be from somebody that has a successful business with millions of dollars of revenue, or tens of millions of dollars of revenue. It’s a very logical thing. Even if they never get to tens of millions of dollars of revenue, it might help them get to millions of revenue because there are so many best practices that people learn along the way. They don’t stop doing those smart things once they become successful… they keep the strategies that work and discard the things that don’t. And so the same is true with billionaires… seeing how billionaires work and seeing what they do leave you clues to how to become worth ten million dollars, perhaps.” You’ll often hear us close podcasts and articles with a very similar send-off: “success leaves clues.” We believe this is paramount to learning about wealth because common advice is catered to the masses. Yet the successful follow the lead of the successful people before them. Part of what Richard does to further this mission is to post interviews with billionaires on Billionaires.com. This way, more people can benefit from the knowledge and skill sets of those who have walked the path already. If you want to invest like a billionaire, listen to the billionaires. How Learning Leads You to Invest Like a Billionaire Most of the billionaire clients that Richard works with are calling themselves to a certain standard of excellence. Beyond that, they all seem to have an intense passion and love for what they do. Ultimately, it’s these values of passion and excellence that unite these billionaires.

Have you heard about Nelson Nash, Infinite Banking, Becoming Your Own Banker, Bank on Yourself, and want to learn more? Or maybe you’re already using Infinite Banking, but would like to explain it better. We're continuing our series on the basics of the Infinite Banking Concept and answering your "what" questions. Today, we'll unpack, What is the death benefit? https://www.youtube.com/watch?v=HbpNX3c35bo So if you want to see the power of the death benefit… tune in now! Table of contentsWhat Makes Up the Guarantees of the Death Benefit?What Are the Differences Between the Death Benefit Guarantees of Whole Life Insurance and Universal Life Insurance?What Are the Chronic Illness and Terminal Illness Riders, and How Do They Compare to Long-Term Care Insurance?What Effect Do Outstanding Loans, Reduced-Paying Up, or Chronic/Terminal Illness Riders Have On the Death Benefit?What is Human Life Value?What Does Life Insurance Do for Your Estate?Book A Strategy Call What makes up the guarantees of the life insurance death benefit?The life insurance death benefit is the amount that is guaranteed to be paid out to your listed beneficiary at your death. What Makes Up the Guarantees of the Death Benefit? The death benefit is the amount that is guaranteed to be paid out to your listed beneficiary at your death.  The key to guaranteed death benefit is having whole life insurance, which is permanent. When you have whole life insurance, you’re in a position where you know that the death benefit will pay out at whatever point you die, between now and the end of that policy. And at the end of the policy, if you are still living, the insurance company still guarantees the death benefit to pay out to you. This is not the case with term or even universal life insurance (which claims to be permanent).  This also means that when you pay premiums, you’re paying into your policy with the certainty that you’ll get a “return.” Whereas with term insurance, you can pay into it for 20 years and never see a dime back.  What Are the Differences Between the Death Benefit Guarantees of Whole Life Insurance and Universal Life Insurance? While both whole life insurance and universal life insurance are technically permanent insurance, universal life insurance has several variables that can cause a policy to implode or lapse. In other words, universal policies are typically not permanent in practice. One of the major factors that makes universal life difficult to maintain is because it has flexible premiums. While many people assume that this gives them the flexibility to pay whatever they want, that’s not the case. So if you choose to pay less, you can underpay for your insurance coverage. This then eats into your cash value account, which may implode the policy if you continue to under-fund it.  With whole life insurance, premiums are guaranteed as well. This means that they cannot increase, so your base premium will always be enough to cover the costs of insurance. You won’t risk underfunding your policy, and you have the freedom to pay more in the form of PUAs if you wish.  What Are the Chronic Illness and Terminal Illness Riders, and How Do They Compare to Long-Term Care Insurance? The chronic illness and terminal illness riders allow you to use your death benefit while you’re still living. If a physician certifies that you have an illness that will cause your death, many insurance companies now grant access to the death benefit while living at no additional cost.  Long-term care insurance is an additional cost, as well as some additional stipulations about when you can use it. Plus, the insurance company can increase premiums over time because of the costs when you have Long-Term Care. While we want companies to be able to offer the coverage, they do have to stay in business. What Effect Do Outstanding Loans, Reduced-Paying Up, or Chronic/Terminal Illness Riders Have On the Death Benefit?

What is the difference between those who achieve financial prosperity and those who do not? How do you build sustainable wealth? Rabbi Daniel Lapin is back to talk about the mindset of abundance rather than shortage, the financial power of reading over watching, and why giving comes before getting. https://www.youtube.com/watch?v=Ur0KWvfH7p4 So, if you want to increase your income while becoming a better person … tune in now! Table of contentsWhy is Financial Prosperity Difficult to Grasp?Overcoming Your Spiritual SchematicsThe Five FsWhy You Should Read for Financial ProsperityConnect with Rabbi LapinAbout Rabbi LapinBook A Strategy Call [6:15] “Honesty compels me to concede that what I am is an exceptionally good transmitter. I like to think of myself as a clean window: you can see through me into the scintillating and incandescent brilliance of ancient Jewish wisdom.” Why is Financial Prosperity Difficult to Grasp? In many ways, our culture makes money a sin and poverty a virtue. However, this gives money far too much credit in either direction. Money itself is a tool with no morality. Money simply represents value, and money goes where people find value–in products, things, people, and communities.  [9:48] “One of our greatest joys is to do a seminar for that church [with a poverty mindset] and then come back six months or a year later, and see the change.” [10:13] “Mindset is very important. I mean, at an Olympic level, what separates athletes is not bodily perfection—they are all at the peak of physical perfection—what distinguishes them is simply psychological and spiritual; the will to win and the ability to endure pain.” [12:15] “In the United States, people’s negative attitudes towards finances and prosperity happen to correspond with America’s deterioration from basically a Judeo-Christian, bible-based worldview to a secular worldview." As Rabbi Lapin explains, those with a secular worldview are uncomfortable with the idea of “making” money over “taking” money.  Overcoming Your Spiritual Schematics Your spiritual schematics, as Rabbi Lapin shares, are the formative experiences that you have that shape your worldview. For many people, their upbringing can be a major catalyst for their adult beliefs that to make money is immoral and that they’re taking something from another.  [36:20] “Making money is, at its heart, one of the most moral and dignified things you can possibly do. Because the only way you can get it is by pleasing other people.” Money represents value, and people use money to prove that they value a service or product you provide. Therefore, it stands to reason that money cannot be evil or immoral. If we can change the cultural outlook on money, more people can thrive. The Five Fs One of Rabbi Lapin’s programs is about developing the Five Fs: family, faith, finances, friendships, and fitness. This helps people rewrite their spiritual schematics and strengthen these important areas in life.  [43:19] “The secret of the Five F, what makes it counterintuitive and difficult and challenging, is that you have to develop all five simultaneously and in balance. Anyone who focuses on one to the detriment of the other four is going to find themselves in trouble.” When you focus on all Five Fs, you create a pretty amazing life for yourself. And what happens in this instance, as the Rabbi shares, is that you create a community of people who are walking in step with each other. Your family and your friends have the same values, so of course, they’re people you can trust with the other Fs, like your finances. Why You Should Read for Financial Prosperity [51:50] “Watching destroys the imagination. With no imagination, there’s no way you’re ever going to dream up a business plan. You won’t. It’s as simple as that. Imagination is an incredibly powerful business tool. I’ve got to imagine how life could be better; not only for me but for my potential cust...

Have you heard about Nelson Nash, Infinite Banking, Becoming Your Own Banker, Bank on Yourself, and want to learn more? Or maybe you’re already using Infinite Banking, but would like to be able to explain it better to your spouse, your parents, your children, business partner, or friends. We're continuing our series on the basics of the Infinite Banking Concept and answering your "what" questions. Today, we're unpacking: What is the Cash Value of Life Insurance? https://www.youtube.com/watch?v=YVAk0pT7kgY So if you want to see how cash value works as a living benefit that enhances your life today … tune in now! Table of contentsWhat is the Cash Value of Life Insurance?How is Cash Value Related to Death Benefit?What is the Net Present Value of a Future Death Benefit?What Makes My Cash Value Grow?What is the Effect of Guaranteed Interest on My Policy?What is the Benefit of Having Cash Value?What Part of the Policy Can I Borrow Against?What Happens to My Death Benefit When I Take a Policy Loan?What Happens to My Principal and Interest on a Policy Loan When the Loan is Repaid?What If There Is An Interest Balance Leftover?What Can I Do With My Dividends?Book A Strategy Call What is the Cash Value of Life Insurance? What is the Cash Value of Life Insurance? Cash value is the equity portion of your whole life insurance policy that you can access and use. It is a part of your death benefit, not separate, and you can access and use it during your lifetime. Cash value accumulates in a few ways: premium payments, guaranteed interest, and non-guaranteed dividends.  How is Cash Value Related to Death Benefit? Because cash value is like the equity of your death benefit, the value represents the accessible portion of your death benefit. As your policy matures, it rises to meet your death benefit. So your cash value is designed to equal your death benefit by the time it endows. The current endowment age is 120. Since endowment represents your ability to access the full value of your death benefit, the policy pays out to you and the contract is complete. However, you’re still guaranteed to receive the full death benefit if you pass away at any point before endowment. That’s the power of a whole life insurance contract. But because the cash value is equity, not a separate account, the payout is not cash value + death benefit. You receive the full death benefit.  What is the Net Present Value of a Future Death Benefit? The Net Present Value of your future death benefit is another way of describing the equity in your policy. The “net present value” is the current present amount of your cash value account, which is a portion of your future death benefit.  What Makes My Cash Value Grow? Over time, your cash value grows as a product of your premiums, interest, and dividends. Your premium–the payment you make to keep your insurance in place–is the main source of cash value growth. However, insurance companies also guarantee that they will pay a certain amount of annual interest, as well as any company profits in the form of dividends. The cost of the insurance itself affects the growth. For example, premium payments must first cover the cost of insurance. When you pay a premium, that money contributes to payroll, investments, and commissions. The remainder is what you have available in your cash value. Since the cash value is the net present value of a future death benefit and the risk to the company lessens with time. Think about it: the risk to the insurance company is greatest when you open a policy. There’s a chance, however small, that you only make one premium payment before you pass away. But because the policy is in force, the company must pay the full death benefit. Over time, you pay more and more into the policy, so the actual costs are decreasing and instead contribute more heavily to your cash value.  Another way to grow your cash value is through guaranteed interest.

Have you heard about the Infinite Banking Concept, and you want to learn more? Or maybe you’re already using Infinite Banking, but would like to explain it better to your spouse, your parents, your children, business partner, or friends. https://www.youtube.com/watch?v=JD3NvQBiqaI In part 1 of our series on Infinite Banking, we're unpacking the basics of policy design and what that means. You can view the first part of the series here: What is the Infinite Banking Concept? Part 1. Here’s your cue to see what the fuss is all about… tune in now! Table of contentsWhat is Specially Designed Whole Life InsuranceWhat Makes it Different from Ordinary Whole Life Insurance?What is Base Premium?What Are Paid-Up Additions?What is a Mutual Company?What is a Dividend?What is the Difference Between the Policy Owner and the Insured?Roles Are FlexibleShould You Buy a Specially Designed Policy or an Ordinary Policy?Book A Strategy Call What is Specially Designed Whole Life Insurance What is Specially Designed Whole Life Insurance?The “special design” is dividend-paying, high cash value whole life insurance with a mutual company. This is the simplest definition, and we’ll break down the pieces and parts over the next few questions. This answer gives you something to come back to and ground yourself. What Makes it Different from Ordinary Whole Life Insurance? Essentially, ordinary whole life insurance is a basic policy that has a simple, non-optimized cash value component, and death benefit. With this type of policy, you only pay the base premium. A Whole life insurance product is a permanent, guaranteed insurance policy that lasts your whole life. However, if you are interested in using an Infinite Banking strategy, you’ll want to ask for a more customized policy. For example, you can either buy a policy with a stock company or a mutual company, which can affect your cash value growth. Similarly, you can also customize what you pay in premiums vs. paid-up additions, which affects your cash value growth. An “ordinary” whole life insurance policy may not grow cash efficiently, yet for Infinite Banking having a specially designed policy is important. What is Base Premium? The base premium is the minimum premium that you must pay in order to keep your policy in good standing. This premium is calculated by the underwriters who use actuarial science to determine your premium based on age, health, and death benefit amount.  Your base premium contributes to your cash value over time, just like mortgage payments contribute to your home equity. If you want to speed up your early cash value growth, you can add PUAs to your premium payments.  What Are Paid-Up Additions? Paid-Up Additions, or PUAs, are additional portions of insurance that you can buy fully paid up each year. This means that on top of the premiums you pay toward your base policy, you can buy a certain amount of additional coverage each year. This gives you additional death benefit, and it also gives you additional cash value.  When understanding PUAs, it’s important to grasp how cash value works. Your cash value is the equity of your death benefit, just like you build equity on your home. That means that as you pay your premium, you build equity on your insurance policy. Cash value is the accessible portion of your death benefit.  Additionally, your early premiums have a slow build-up. This is because the costs of your policy are front-loaded. So, at the beginning of your policy, your cash value won’t increase at a rate equal to what you pay. Though, over time, more of your premium will contribute directly to the cash value.  PUAs are like micro policies that you can tack onto your premiums each year, up to a limit. Your PUAs are a fully paid-up portion of insurance. This means that when you pay it, you’re directly increasing your death benefit and cash value. By adding PUAs to your base premium,

We often talk about multigenerational legacy and multigenerational wealth, but beneath it, you need a multigenerational family team. Not just in name, but a strong team deeply committed to flourishing for generations. https://www.youtube.com/watch?v=VCWRk1N_Bdw Jeremy Pryor, Partner and Co-Founder of Family Teams, is helping families build a multigenerational team on a mission. They help parents think of families as a team, and coach the team to work together toward a common mission. They also give practical guidance for developing family rhythms, training, traditions, business, and home life. If you’re looking for practical tools to strengthen your family, work together in business, and flourish for generations… tune in now! Table of contentsJeremy's Introduction to Multigenerational Family TeamsIndividualism is the Default TodayIndividualism vs. the Multigenerational Family TeamCreating a Balanced Multigenerational Family TeamThe Hundred-Year HorizonThe “Intangible” Family UnitAre There Dysfunctional Family Teams?About Jeremy PryorBook A Strategy Call Jeremy's Introduction to Multigenerational Family Teams Jeremy grew up in Seattle, and he describes it as a place that had very few flourishing families. It wasn’t until Jeremy studied abroad in Jerusalem that he became immersed in a culture that valued family foremost. Fatherhood, particularly, was a critical piece of the family culture in Jerusalem. To the people he met, the family was about legacy, and people viewed their family as a team or unit. It was at this point that Jeremy’s interest in creating his own multigenerational family sprouted. What he found in his research was that multigenerational family teams or structures tended to occur when people were in survival mode. During periods of war, recession, or other hardship, families would rely more closely on each other. This helped to ensure the well being of everyone. Yet as things adapt to become "safe" again, the world becomes more individualistic. The problem is that when people are individualistic, they lack stability, and can ultimately become isolated. Not only does this mean people are spending their final years alone, but there is little to no sense of generational security. Creating a family culture that centers around the whole unit's ability to thrive fosters connection, confidence, and security. Individualism is the Default Today [11:58] “You actually have to ask people to make a choice, and it is a choice. Like you could just raise… your kids to be a group of individuals, and to reset every generation, and to have that 80-year memory that the typical western family has. Or, you could choose to be a multi-generational team and take on some things together, and have that long legacy memory. But you get to choose.” [12:24] “In our culture, the vast majority of people… will choose to live out that individual life… because that’s the default, unfortunately. And that’s the reason why they’re doing it. That’s the reason why more and more people are living and dying alone. Because we don’t realize that we’re making a thousand small decisions to isolate ourselves from other relationships.” Individualism vs. the Multigenerational Family Team Because of an assumed sense of stability, as Jeremy shares, the multigenerational family team has all but disappeared in the US. People now rely on their own devices, rather than working with their families to create wealth and support each other. After all, in times of survival, it makes sense for families to rely more closely on each other. And when the nation prospers and life is good, people tend to branch out and forget the power of a family who works as a team.  [15:23] “You will, if you go on default, build an individualistic family; a springboard for individual success. That’s okay, you can do that…[but] there is another option. You can instead build a multigenerational family.”

What Is Infinite Banking?  Have you heard about Nelson Nash, Infinite Banking, Becoming Your Own Banker, bank on yourself, or be your own banker and want to learn more? Maybe you’re already using Infinite Banking but would like to explain it better to your spouse, parents, children, business partner, or friends. https://www.youtube.com/watch?v=dSCWZD5Hpbo Today, we're starting a new series on Infinite Banking Basics. We'll be unpacking all of your "what" questions about Infinite Banking. In this conversation, we answer: What Is Infinite Banking?What Is Whole Life Insurance?What Is the Purpose of Life Insurance? So if you want to see how Infinite Banking gives you control and options, why you don't want only term life insurance, and why insurance is still for you, even in your latest decades… tune in now! Table of contentsWhat is Infinite Banking?What is Whole Life Insurance?Term Insurance vs. Whole Life InsuranceWhat is the Purpose of Life Insurance?Book A Strategy Call Infinite Banking Explained The infinite banking concept is complicated, and something that most people learn over time. Even seasoned users of infinite banking have “ah-ha” moments as they grow in their understanding. The purpose of this conversation is to accelerate some of those “ah-ha” moments so that you can have the tools to get started.  [5:44] “Let’s be honest. Do you really, really, really need to know how something works? Or do you want to know what it does for you, and what it allows you to do in your own life? So we’re going to play that balance delicately today.” What is Infinite Banking? The simplest answer to this question is that infinite banking is a strategy of using specially designed whole life insurance. However this may call up many other questions, such as what is whole life insurance, and what does it mean to be specially designed?  To take the topic in a broader direction, let’s say that infinite banking is about creating financing opportunities. We all finance things: mortgage payments, car payments, bills, groceries, credit cards–-all of these are financing scenarios. An infinite banking system creates an additional, efficient pool of money for financing your life.  [8:22] “Nelson [Nash] said your need for finance is greater than your need for saving.” The beauty of infinite banking is that you get to do both–save money, and finance purchases. This is because you’re creating a financial system for yourself that mimics the banks. [10:58] “What infinite banking puts in your lap, or in your hands, is this ability to model the bank and act like the bank and control capital. And that’s at the core of why it allows you to finance well and save well, because you’re in a position of controlling capital like the bank does.” The preferred vehicle for infinite banking is whole life insurance, which helps you create a pool of money that is safe and growth-oriented. What is Whole Life Insurance? Life insurance is insurance that you pay a premium for, and if you die while the policy is active, your family receives a payout of money. The simplest definition of whole life insurance is life insurance that lasts for your whole life and provides a cash value account.  The reason it lasts your whole life, as opposed to term insurance, is because of the structured agreement. You agree to pay a certain amount of premium over your lifetime, in exchange for coverage over your lifetime. [14:54] “Whole life… takes the insurance cost and it spreads it out through your entire life.” This model guarantees that you will have coverage in place if you die, so long as you hold up your side of the deal: paying premiums. Fortunately, these premiums don't just vanish. You actually get to access your cash, through the policy's cash value component. Cash value works like home equity. The more premiums you pay, the more access you have to your cash value while you’re living.

Why would a commercial real estate investor, author, and syndicator move away from apartments and become a self-storage investor? https://www.youtube.com/watch?v=0y_47Zr3F6g Paul Moore, real estate investor and author of Storing Up Profits, demonstrates how to capitalize on America's obsession with stuff by investing in self-storage. So, if you want to find out what's to love about self-storage, learn the risks and downsides of self-storage, and get the scoop on how it performed during the pandemic ... tune in now! Table of contentsPrior Interviews with Paul MoorePaul's Introduction to Self-StorageBigger PocketsWhy Self Storage?What is Value-Add in Self Storage?The Risks of Self StorageHow to Get Started in Self-StorageConnect with Paul Book A Strategy Call Prior Interviews with Paul Moore Lessons from a Commercial Multifamily Investor, with Paul MooreWellings Capital: Opportunities in Commercial Real Estate, with Paul Moore Paul's Introduction to Self-Storage After selling his company to a public firm in his 30s, Paul thought he was going to get out of the game and focus on his family. However, he quickly realized that he wasn’t fulfilling his calling, and therefore was not being the husband or father he wanted to be. On top of that, he was bored.  This spurred him to seek a way to fill his time in a purposeful way that could also help him protect his family’s wealth. What occurred to him was real estate, so he started flipping houses and lots, and finally building houses. [4:28] “I found out something really important that everybody needs to know. If you don’t know how to tighten the doorknob on your own house, you probably shouldn’t build a house.” Eventually, he found his place in multi-family real estate. But after a while, he felt like what he thought was the “perfect investment” was no longer perfect because he had to overpay to get it. After research and time, his team discovered self-storage investments and created a fund to invest in that space. Bigger Pockets Paul started his work with Bigger Pockets as a blogger, sharing his wisdom on real estate. And every six months, he would ask, “Is there anything else I can do to serve you?” Because Paul was invested in their success, and helping Bigger Pockets succeed, they’d let him do videos, live shows, and write books through them. [7:17] “Bill Gates, he did three things to become the wealthiest person in the world. Number one, he decided at a young age what he wanted to do and he stayed in that lane… Second, he… found the biggest, most influential platform in the world that would be willing to let him partner with them. And then the third step is… not obvious. He did everything in his power to make them successful. Not himself, but them.” Why Self Storage? One of the benefits to self-storage, as Paul shares, is the short time frame the asset operates on. When you lease commercial property to someone, those leases are often a decade or two long, which means that rent is locked in. With self-storage, leases occur on a month-to-month basis, so you can raise prices as you see fit each month.  [10:58] “The thing I like best, though, is the fragmented industry. Now self-storage has about 53,000 facilities in the US. That’s about the same as McDonald’s, Starbucks, and Subway combined.” About 75% of these facilities are run by independent operators, and two out of every three independents own one facility. This means they’re classified as a mom and pop, and they don’t have to have a lot of knowledge to make a good profit. However, this creates opportunities for experienced investors to come in and acquire the property, and capitalize on any oversights to drive further profits.  What is Value-Add in Self Storage? [18:06] “The first time I heard value-add and self-storage, I think I laughed out loud. I mean, where are the countertops and cabinets and flooring and bark park and lighting and, you know,

Here’s a listener question about personal finance for beginners: "What is the foundation or the starting point of wealth building? What are the core things I would want in place to start building wealth?" https://www.youtube.com/watch?v=l0T2gjJvaAg You might be asking the same question. Do you have savings you want to do something with? Are you wondering if you are making the best personal finance decisions? Is it time to talk with a financial advisor? What do you need to know to figure out if the plan you create is going to be best for you? Many people with great money habits realize that it’s time to do some planning when they have a stash of savings. Should you invest? In the stock market? Which stocks? With which company? How much risk should you take? How do you track your performance? Will your plan get you closer to financial freedom? Let's talk about the 10 things you want to have in place in your personal finance, to make sure you’re headed in the right direction with a plan you feel good about. Tune in now! Table of contentsWhat is Wealth?Ways to Define WealthOther Ways to Think About WealthWhat is Financial Planning?How Do You Optimize Your Financial Life?Optimize Your Personal Finances: 8 Habits to Have in PlaceConsistent SavingsIncrease Your SavingsSave with Safety, Liquidity, and Growth in Mind15-Minute Money6-12 Months of ReserveThink of Savings as Emergency and Opportunity FundNever Stop SavingLook Into Infinite BankingInvest with Knowledge and Control Start Your Personal Finance JourneyBook A Strategy Call What is Wealth? [8:58] Bruce: “The first thing I would say is that you really have to decide what your definition of wealth is for you.” Bruce elaborates by sharing how, when asked about his Net Worth, he had to unpack the statement. Because typically, Net Worth is someone’s “pile of money.” It’s the culmination of their assets against their liabilities. To some, this may be the most important financial marker. However, Bruce and his wife decided that they valued cash flow more than a pile of money. So for them, Net Worth doesn’t necessarily scratch the surface of what they can do with their money.  Ways to Define Wealth There are three fundamental ways people define wealth, which may help you get clearer on your own personal definition of wealth. Net Worth is the first definition, which is viewing your finances like a balance sheet.  Another way to define wealth is to consider not just your cash flow, but how that cash flow represents your wealth potential. This is more abstract, but consider it for a moment. Say you have $400,000 of cash flow. This is a fraction, or percentage, of your total wealth potential. That total wealth potential represents what your cash flow would be if you saved that money in an account earning, say, 4%. That would make your wealth potential $10 million. If you reverse engineer this, you could theoretically live off of 4% of that same $10 million, which would be the $400,000.  Finally, many people today consider their time to be their wealth. So this may not be represented by a certain dollar figure, but by how much control you have over your time. Many people today choose to be entrepreneurs for this reason or work in the “gig economy,” so that they have more time.  The point is not that there is one ideal of wealth, but that you can reach a point on your journey where you feel as though you are wealthy. So, you must define wealth for yourself. Your definition of wealth may include some combination of these aspects or other ones entirely.  Other Ways to Think About Wealth In the book “Complete Family Wealth,” the authors define wealth as a family flourishing. They pose the idea that if you’re not happy, healthy, well-connected, and in control (among other things) then you are not truly wealthy. Wealth is not simply about money, but about whether you are living the life you wish to live.