The Money Advantage Podcast

Like a business, churches and other non-profits have a need for financing. Today, we’re discussing options to keep the church financing in-house. https://www.youtube.com/watch?v=cSnti9l_C40 So, if you want a strategic financing strategy that guarantees your church or other 501(c)3 would never lack the funding to accomplish the most important mission of all… tune in now! Table of contentsFunding Not-For-ProfitsInfinite Banking Concept for ChurchesWill Infinite Banking Work For Every Not-For-Profit?You Don’t Need to Operate on a Razor-Thin BudgetWho Should Be Insured for Church Financing?Book A Strategy Call Funding Not-For-Profits If you’re running a church or other not-for-profit business, chances are you need funding. Funds allow you to create more good for your community and accomplish what is likely a big mission. Without the proper funding, especially consistent funding, those goals can seem out of reach. Donations are a common source of funding for churches, as well as bank financing, yet relying solely on these methods of financing can be unreliable. If you’re seeking to achieve big goals and take care of a broader community, control of financing is crucial. Fortunately, you can use Infinite Banking for church financing. However, in a church or other not-for-profit sector, it’s likely that much of what you do must include collaboration. In other words, there has to be some consensus. This can mean educating your peers and other church leaders, as well as discussing how privatized banking can benefit your church or not-for-profit. (Note: We recommend having your board or administration speak with a financial professional, as the conversation can be complicated.) Infinite Banking Concept for Churches Why might a church want to use infinite banking? If you’re considering the Infinite Banking Concept for your organization, this is a great question to ask. For many institutions, we believe the answer might be that funding a life insurance policy allows you to save money and finance projects without a third party, such as a bank. This can add more stability to your organization’s financing, beyond the tithe, donations, and banks.  “If you have large reserves, and you’re trying to store that cash as effectively and efficiently as possible so it can do the most good for you, then infinite banking would be an ideal storage place.” That’s because the cash value of a life insurance policy allows your cash to work as hard as possible while you’re waiting to use it. Not only this, but the death benefit of the policy will help you plan in the long-term for your church or organization. When that benefit is paid out, it can be used for ongoing financing for the church or organization. Will Infinite Banking Work For Every Not-For-Profit? If, however, your organization does not have a lot of cash reserves or has a lot of debt, you may not want to start a policy right away. That’s because you must still have a way to fund the policy, which is often with cash reserves. The first step to building a policy for your organization is to figure out how you will finance the policy. Similarly, if your church has significant debt and you are struggling to pay off that debt, it might not be the best decision to open a new policy. An Infinite Banking policy requires debt management, and it’s not advisable to use a policy loan to pay off another loan. Working with an advisor can help you determine the best strategy for managing your organization’s finances and debt. You Don’t Need to Operate on a Razor-Thin Budget “Just because you’re non-profit doesn’t mean that you should not be financially responsible and that you shouldn’t be profitable.” There’s a myth that not-for-profit companies should operate on a razor-thin budget because they’re a public service. However, in our conversation with Kris Putnam-Walkerly, we broke that myth wide open.  The reality is,

Want to raise children with responsibility and teach them how to become contributors? Looking for ways to make your capital work harder? Today, we’re talking with Gary Boomershine, CEO of RealEstateInvestor.com about creating a family economy and private lending for real estate. https://www.youtube.com/watch?v=MOm6ZYP_4xg If you’re an investor or business owner who wants to create the life you envision… tune in now! Table of contentsWhat is Private Lending?Real Estate Professionals Need CapitalThe Basics of Private LendingThe One Requirement for Private Lending for Real EstateThe Importance of the Down PaymentHow Do You Get Into Private Lending for Real Estate?Rule 1: Think Like a BankerRule 2: Have Your Own CriteriaRule 3: Leave the Paperwork to the ProfessionalsPrivate Lending and the Family EconomyLeveraging You Family’s Skills Connect with GaryAbout Gary BoomershineBook A Strategy Call What is Private Lending? [2:31] “If we look at...the biggest buildings on every street corner in the world, they’re not rehabbers or real estate companies. Okay, you’ve got a few of them. But you’re not going to see a flipper or a rehabber. The biggest buildings on every street corner, in every part of the world, are banks. Why? Because their business model works.” Gary points out that many people see a bank, and only really view it as a natural part of their money cycle. They don’t fully understand the concept of banking, and how it is one of the most profitable business models. He points out that the population has been trained to be a cog in the banking system, without questioning it.  Yet, he also says this: [3:25] “It’s really easy to vilify the banks. But...you know what? The business model works. How can we look at things and act like a banker?” This is the foundation of private lending. Real Estate Professionals Need Capital No matter which way you slice it, capital is necessary for real estate investors. They can come up with the cash themselves, or they can leverage other people’s money to make the sale. Typically, this is when investors visit the banker for a loan.  [5:50] “Who writes the rules for finance? Is it the hard-working real estate investor? No, it’s always the lender.” If the bank is the lender, they want to see your credit and tie up all your assets in collateral. They also likely want a down payment. Then, once the investor secures the property, who gets paid first? The bank. Banks almost view investors as employees—they’re doing all the heavy lifting and bringing business deals straight to the bank.  And there is tremendous opportunity in becoming like a bank and loaning your capital to other investors if you have the right vehicle to do so. In other words, you also want to leverage other people’s money, like that of a life insurance company.  The Basics of Private Lending Gary’s first lesson of private lending is that he doesn’t go directly to borrowers. Instead, he goes to a hard money broker or private money broker. That way they can bring him the deal flows. The brokers talk to borrowers and handle the paperwork, as well as vetting properties. These are licensed brokers. Then, all Gary needs to do is wire the money and he gets a deed of trust (rather than a deed).  [8:25] “Private money lenders typically don’t use their own money. They’re using people like us. So if you have an infinite banking system, or if you have cash sitting in a bank account, [you] can go put that to work.” In such deals, Gary prefers to be lending in the first position (as opposed to the second position), because there is less risk. This way, the loan is secured by a piece of real estate, and he gets a fixed interest rate.  [9:05] “I’m usually getting anywhere between eight and a half percent, and sometimes as high as ten percent. Some people can get higher than that.” He also requests a 30% down payment, which mitigates much of the risk in the event that the housing mark...

Want maximum immediate liquidity with an IBC policy? Planning to fund a 10/90 infinite banking policy and then take max loans to fund real estate? Are these double-dipping returns too good to be true? https://www.youtube.com/watch?v=YAwhBlF3XVs STOP. Listen to this first. The allure of making an IBC policy better than even the creator of the term IBC has many people shopping for “Skinny Base” whole life policies with maximum early cash value. But there are problems on the horizon. And we’re scared of what 10/90 infinite banking policies mean for many who want guarantees. Today, we’re talking with James Neathery, fellow IBC thought leader, Nelson Nash Institute certified IBC practitioner, and executive producer of the best-selling documentary on the Infinite Banking Concept, Banking with Life. In this rare panel discussion, we’re collaborating to give you the truth about policy design and what you need to understand that most financial advisors will never tell you. So, if you want to ensure you build your IBC policy on solid rock and not shifting sand, tune in now! Table of contentsIllustrations Aren’t Always HelpfulThinking Big-PictureDon’t Steal the Peas10/90 Infinite Banking Policies and the Long-TermGiving Up Guarantees with 10/90 Infinite Banking PoliciesAbout James NeatheryBook A Strategy CallFAQsWhat is a 10 90 insurance policy?Is 10/90 whole life insurance the best option for Infinite Banking?What are the risks of a 10 90 split in life insurance design?Can you fix a poorly structured IBC policy later? Illustrations Aren’t Always Helpful [5:45] “Specifically speaking about equipment financing in his first book, Becoming Your Own Banker... [Nelson Nash] said… if he were to rewrite the book, he would not put illustrations in the book. Because they serve, really, as a point of confusion. You know, you cannot look at a life insurance illustration—the tabular detail where all the numbers are—and make a coherent decision.” We believe this is a significant point because examining the numbers seems like a logical step. Yet, the illustration is a projection of what we expect to happen, not a guarantee of the policy's outcome. Examining all the numbers can be overwhelming and muddy the concept as a whole. Not to mention, if you’re looking for early cash value and comparing illustrations, you may even overlook the big picture. Illustrations often reflect best-case scenarios based on assumptions that may never come true. The reality of how your policy performs depends on factors such as dividend rates, costs, and how you utilize the policy. As James Neathery says, an illustration is a snapshot, not a strategy. [8:15] “In the agent’s heart of hearts, they think that this is right, squeezing the base down…so you can have a high PUA or high cash value, or a high immediate loan value. But then they don’t realize what they’re sacrificing in the future with those policies. And there is absolutely a trade-off.” Thinking Big-Picture While the goal of infinite banking is to create a system of wealth for yourself that is liquid, reliable, and certain, it’s often mistaken for a magic pill, especially when people hear about strategies like the 10 90 split.  People want a quick solution, with a quick cash value build-up. They want a magical pool of money to dip into. Unfortunately, this short-term thinking can prevent you from seeing and fully appreciating the long-term benefits of whole life insurance.  Early cash value build-up isn’t inherently good or bad—it depends on the purpose of your money. However, it isn’t magic. It still takes time and diligence to maintain a policy. Life insurance is meant to be a generational tool—well beyond even your own life.  [11:05] “You are afraid to capitalize, you are afraid to pay a premium if you have to have access to 100% of it.”  James Neathery isn’t disparaging access to capital; however, he is pointing out a system of flawed thinking here....

Shaahin Cheyene built a billion-dollar business by the time he was 18 by creating a thrill pill cult. He’s an award-winning business mogul, author, and filmmaker. He is also the inventor of Herbal Ecstacy, the nootropic that sparked the (100% legal) Smart Drug Movement. https://www.youtube.com/watch?v=xYNnni4kKsw He’s been called the “Willy Wonka of Generation X.” Now, he’s the world’s leading Amazon industry expert. If you’re looking to accelerate your business, and learn from Shaahin Cheyene… tune in now! Table of contentsGrit and ResilienceMaking Entrepreneurs Out of CriminalsGoing to Brick and Mortar ShopsThe Amazon EmergenceLinksAbout Shaahin CheyeneBook A Strategy Call Grit and Resilience [2:16] “Third world, Bruce. It brings grit and resilience. When you are not expectant of everything being handed to you, and in fact, you have to fight for everything you’ve got, it creates a certain kind of stick-to-itiveness. It creates a certain type of resilience in human nature.”  When Shaahin came to the United States from Iran, he didn’t speak English. His family was poor after their immigration, despite having been middle class in Iran. Shaahin learned from a young age that he had to be able to hold his own.  From his family’s perspective, his goal should have been to become a doctor. From Shaahin’s own perspective, his neighbor the doctor had mountains of student debt, kept crazy hours, and didn’t have the time to look after himself and his interests. So Shaahin knew there had to be a better way to “make it.” Making Entrepreneurs Out of Criminals Shaahin shares his own story about how he helped dozens of petty drug dealers become legitimate business owners through his product. While living in LA, he saw the power that drugs had over people and the incredible profit that could be made... if there was a way to create an entirely safe and legal alternative. Without the money or means to have a full-scale operation, Shaahin leveraged the use of his girlfriend’s kitchen to experiment with herbal remedies. Eventually, he was able to develop something that worked—it gave people energy and made them happier, minus some of the negative side effects of drugs.  Then, he took that product to a well-known drug dealer. Out of desperation, the guy agreed to sell his product, and it slowly helped dozens of drug dealers legitimize their business and actually back out of the illegal drug trade. Going to Brick and Mortar Shops After helping these dealers, Shaahin took his business to brick and mortar shops and actually sold it across the world. Six months prior to this, he was sleeping in abandoned buildings. He built something from the ground up and was creating massive jobs. As he puts it, he hired “anyone who could fog a window.” In that first year, he broke a billion dollars in revenue. Anyone who was anyone wanted him on their show.  After that, Shaahin has developed two new nootropics or brain-enhancing drugs.  The Amazon Emergence Somewhere around 2008 or 2009, Shaahin reached out to Jeff Bezos, who had recently opened Amazon to third-party sellers. He listed some of his new products on Amazon and made thousands of sales overnight. So Shaahin knew that Amazon was going to be something huge.  [30:28] “I decided that I was going to master this platform. I put all my chips in on Amazon, and we learned.” He had so many people coming to him for advice, at one point, that he decided to develop a course to help people become sellers on Amazon.  Links Billion by Shaahin Cheyene Shaahin’s YouTube channel Hack and Grow Rich Podcast Email Shaahin: darkzess@gmail.com  (Write: Send Me the Free Course) About Shaahin Cheyene RANKED #1 Amazon Accelerator. I help you CRUSH IT on Amazon. $350 Million In Sales. Herbal Ecstacy, Vapir, and many more! During the Iranian Revolution of 1978, Shahin’s family had to escape to survive and ended up finally migrating to Los ...

We’re so thankful for the opportunity to answer your money questions and clear up your confusion. If you’re stuck, we want to help you make sense of the situation so you can move forward.  https://www.youtube.com/watch?v=zeWqkGwSBq4 Today, we’re continuing the conversation to answer questions from you—our audience. We want to help you on your quest to control your financial future. There are some great ones here that might be on your mind too. So maybe you’ll get the answer you’ve been needing, and get one step closer to your goals… OR maybe it will prompt you to ask a question of your own… tune in now! Table of contentsWhy is Whole Life Insurance “Better” Than Indexed Universal Life Insurance?Can You Explain “Other People’s Money”?Can You Explain the Difference Between Dividends and Interest?Is it Wise to Run Expenses Through an Infinite Banking Policy?Book A Strategy Call Why is Whole Life Insurance “Better” Than Indexed Universal Life Insurance? The answer boils down to the contractual guarantees of whole life insurance versus IULs.  An IUL contract is roughly twice the size of a whole life insurance contract. The reason it is so lengthy is that the insurance company has to include explanations of all the risks involved. An IUL carries much more risk because of its correlation to the stock market. And because it’s risky, taking policy loans from an IUL shifts even more risk off of the company's plate and onto yours.  Agents often sell IULs as the best of the stock market’s upside, and you can’t lose money. However, that isn’t actually true. To begin with, you don’t get the best of the market, because IULs often have a maximum rate, or a participation rate, or some other provision that limits how well you can do. And while you cannot lose money from a downturn in the stock market, your policy cash value can decrease. Unfortunately, people don’t understand that if the policy doesn’t perform as well as the “hypothetical examples” given by the insurance company, the companies can increase the cost of insurance, which reduces your account balance. Whole life insurance guarantees that the money credited to your cash value will not decrease. So although dividends are not guaranteed in whole life insurance, they have a great track record. That, and the only way your policy will decrease is through withdrawals. In fact, your whole life contract guarantees that your cash values floor will increase every year. The bottom line is that we do not endorse using an IUL as an infinite banking policy. You can learn more about this in Privatized Banking: What Kind of Policy Do You Use? Can You Explain “Other People’s Money”? One viewer asked:  Can you explain OPM further? In real estate, when you use OPM as a loan, your cash in the bank is readily accessible. For example, let's say I have $100k in the bank & I borrow $100k to buy a property instead of paying cash. I've borrowed $100k and still have access to $100k to buy another identical property for cash (access to $200k total). But with a policy loan, if my cash value is $100k, let's say the insurance company collateralizes my $100k cash value and they lend me $100k, I can not go back to my policy and cash out my $100k cash value since it's collateralized. This means I only have access to $100k, not $200k, like in the first scenario. Am I mistaken? We love that this question is so thoughtful and detailed. To answer the first part of your question, we agree! If you have $100k in the bank as cash, and you get an unsecured loan of $100k, you are leveraging OPM (other people’s money) to have greater access to capital. If you’re using infinite banking, and you have $100k of cash value and you collateralize it, you are tying it up so that you can no longer use it. However, you’re getting access to $100k of the insurance company’s money and leaving your cash value to sit and continue accumulation. Essentially, you’re trading your access,

Are you repeating the same day over and over again, or building momentum and springing forward by leaps and bounds? Are there opportunities buried in your own business? Today, we’re talking with Adam Hommey, author of Groundhog Day Is an Event, Not a Business Strategy.   https://www.youtube.com/watch?v=Ubie5ZpV45o If you want to find out how to connect your brilliance and your passion to WIN in business and marketing… tune in now! Table of contentsAdam Hommey’s BeginningsGroundhog DayHave You Instituted “Permanent Reactions”?What Could You Have Someone Else Do?What is the SPRING Formula?Transaction Partners vs. CustomersMinimalism vs. Essentialism in BusinessShould You Nix the Business Phone?Availability vs. AccessibilityConnect with Adam HommeyAbout Adam HommeyBook A Strategy Call Adam Hommey’s Beginnings Entrepreneur and author Adam Hommey began his entrepreneurial journey in 2003. Yet almost a decade later Adam found himself wondering where he wanted to go next. He didn’t have a vision. For a few years, all he used to get leads and share his ideas was podcasting.  At this time, he was also posting frequently to his social media. When a friend remarked that he enjoyed seeing the “daily Adam,” he had an idea. Thus began a blog called the “Morning Adam.” For 90 days he cross-posted his social media posts onto this blog without specific marketing goals. This helped Adam to release what was blocking him and just create. [5:30] “I notice entrepreneurs find themselves on these plateaus, no matter what happens... when the dust settles, they find themselves at the exact same level of profitability or lack thereof—sometimes even the same dollar amounts—and they’re having the same conversations they’ve been having for five years.” Groundhog Day This revelation led to his book, which talks about the cycles entrepreneurs get stuck in. And when the actual holiday rolled around, Adam wasn’t fully ready to publish this book. However, he didn’t want to wait another full year to take advantage of the holiday. So he made time to launch it, anyway.  [7:48] “The ‘how you’re supposed to do it’ is, in more cases than not, a permanent overreaction to a temporary blip on the radar. You can break those rules like I broke those rules getting the book done.”  [8:10] “You are allowed to be unconventional. I created an entire marketing program that had no avatar, and no target market, and no product behind it--and that created my core following that is still the basis of my fan base for the Business Creator’s Radio Show to this day.” Have You Instituted “Permanent Reactions”? Adam shares with us a brief parable of a woman who cuts off the ends of her roasts before she cooks them. When her husband asks her why she does this, she answers that it makes the roast cook better. This is what she’s been told her whole life. In reality, what she didn’t know is that three generations back, during the Great Depression, her family began doing this because they couldn’t afford a bigger pot. It became a habit, or a “permanent reaction,” due to a temporary situation.  [11:35] “That is what I think constrains us in many cases. I urge business creators, entrepreneurs, whoever you are, to look at the things you’re doing on a daily basis, and ask yourself continuously, ‘What would happen if we didn’t do this at all?’ And that creates a challenge. It helps to surface those things that may be permanent overreactions to temporary blips on the radar.” Adam continues that not only does this give you an opportunity to see new, potentially more efficient, ways of doing things. It can also help you identify your real, high-value actions, so that you can do more of those.  What Could You Have Someone Else Do? When you take time to answer Adam’s question, you may start to realize that there are things you can move off of your plate. There’s no reason someone else can’t do the things that you don’t want to do,

Are you considering whole life insurance, but want to know more about the new products the life insurance companies have released in response to the 7702 changes in 2021? How a whole life dividend rate is computed? Is cash value life insurance improving? Well, the new products are finally here! Let's dive into the 7702 whole life insurance dividends update discussion. https://www.youtube.com/watch?v=ZvRI9r7cEqk What does the 7702 tax code mean for whole life insurance dividends? Tune in now to get the need-to-know information so you can see what to expect for new Infinite Banking policies. Table of contentsRecapping the 7702 Whole Life Insurance Dividends UpdateGuarantees Have Gone Down... What Does This Mean?Gross vs. Net How Interest Rates Really Work7702 Whole Life Insurance Dividend UpdatesIllustrations are Not ContractsIs Death Benefit More Expensive Now? Is it Too Late to Have a Policy Without The Changes?How Does Convertible Term Work with the New Changes?Book A Strategy Call Recapping the 7702 Whole Life Insurance Dividends Update In our previous blog post(7702 Whole Life Insurance Updates), we discussed some of the changes to life insurance products because of the updated 7702 tax code. Naturally, this raised some questions that we want to personally address. This is a new thing for us all, and it’s important to have a good understanding of it going forward.  These new products are great for the death benefit, which is really the insurance portion of your insurance. The death benefit is what protects your future income, and can help your family members in the event of a loss. Yet, we’re rightfully getting a lot of questions about what this means for cash value.  Guarantees Have Gone Down... What Does This Mean? Most of the new life insurance products have lowered their guaranteed cash value increase, yet what does this really mean? Is this a good thing, or a bad thing? We think it all depends on your point of view.  The obvious concern is that if the guaranteed interest rate is lower, that means that cash value build-up is going to be much slower, right? Fortunately, this isn’t quite true. A life insurance company’s first responsibility is to meet contractual obligations. This means delivering all death benefits, paying out profits, etc.  In a low interest rate environment, especially during a long-term one, this can be detrimental. By lowering the guarantee, insurance companies can continue to fulfill their role with confidence, and without needing to take more drastic measures, like demutualizing.  Gross vs. Net  It’s also important to know that guarantees are Gross—this means that they are projected before fees and other costs of the policies. So a guaranteed rate, no matter what the number is, is likely to be lower than you think it is. Does this make it bad? No, this makes it realistic.  Fortunately, there are a number of other ways your policy can grow, including the profits the company makes, in the form of a dividend. If you didn’t know, the guaranteed interest rate is actually a portion of the total declared dividend. So what the companies are doing is actually changing the structure of the declared dividend, and making a lower portion of the full declaration guaranteed. In other words, if they’re making a reduction in the guaranteed interest rate growth of your policy, that does not necessarily mean that they’re reducing the declared dividend rate. What the insurance company is doing is reducing the guaranteed portion of the total declared dividend. This may have very little impact on what you actually make in growth each year.  How Interest Rates Really Work If you’re thinking that a 1% increase or decrease doesn’t matter all that much, here’s some food for thought. When interest rates go down, bond values tend to go up. This happened in the 80s and 90s, and we’re likely to see it again.  And even a 1% increase can make a large impact on bond rates...

Are you considering whole life insurance, but want to know more about the new products the life insurance companies have released in response to the 7702 Whole Life Insurance updates in 2021?  https://www.youtube.com/watch?v=WCMQruG3bVQ The new products are here. What does the 7702 tax code mean for whole life insurance? Tune in now to get the need-to-know information so you can see what to expect for new Infinite Banking policies. Table of contentsWhat are the 7702 Whole Life Insurance Updates?What Happens to the Infinite Banking Strategy?Are Lower Guarantees a Bad Thing?Is Less Death Benefit Bad?Is There a Big Difference Before and After?Book A Strategy Call What are the 7702 Whole Life Insurance Updates? If you’re scratching your head when you hear 7702, don’t worry. This simply refers to a section in the IRS tax law that dictates the tax treatment of whole life insurance. At the end of 2020, this tax law was updated.  While some have voiced concerns over how this will affect future life insurance policies, we’re more optimistic. You can read our initial analysis of the 7702 whole life insurance updates in our post, Is Infinite Banking Dead? Fortunately, we’re now seeing actual life insurance illustrations that reflect these changes. That means we can dive deeper into the discussion with real numbers so that you can make the most informed decisions possible about your insurance. What Happens to the Infinite Banking Strategy? While there’s still a lot of unknowns, we’re starting to see new developments in the 7702 change. These updated products and policies will take full effect by January 1, 2022. Not all major life insurance companies have begun to sell these new policies.  From our preliminary analysis of what’s available right now, here’s what we know: Guarantees have gone from 4% to somewhere in the 2-3% range on most productsYou’ll see less total death benefit compared to older policies of the same premiumTotal dividends, which include guaranteed and non-guaranteed, should not be impacted much Are Lower Guarantees a Bad Thing? Not necessarily. In fact, as we mentioned in our first 7702 whole life insurance updates article, lowering the guarantees can actually strengthen your company’s longevity. Remember that minimum guarantees are just that: minimums. As a policy owner, you get to partake in the company’s profits. This means that if and when interest rates bounce back, we would expect to start seeing higher returns on the non-guaranteed side.  We should also note that the guaranteed portion of your policy is a part of the declared dividend. For example, if the guaranteed side is 4%, and the declared dividend rate is 5%, you’re (roughly) getting an additional 1% in growth. However, there are certain factors that change exactly how this calculation works.  Ultimately, remember that an illustration of a policy is simply a snapshot in time. As soon as companies pay dividends, that illustration is inaccurate. So a policy illustrated in a low-dividend year won’t reflect the real trajectory of your policy. It’s simply a guideline.  We discuss this further in 7702 Whole Life Insurance Dividends Update (2021) Part 2. Is Less Death Benefit Bad? While total death benefit is going to be lower overall, this actually pushes the cash value up. This happens because your cash value is the portion of the death benefit that’s accessible to you. And by the endowment age, your full death benefit is accessible to you. As your policy matures, the death benefit increases, and your accessible cash value increases.  With a lower death benefit, this means that your cash value is proportionately higher than a similar policy.  While you may be losing some death benefit, what you’re not losing is cash value and the ability to access that cash in a tax-advantaged way. To solve for the death benefit, you can consider a convertible term insurance policy or put more premium into y...

What are the top 1% of high-performers, producers, and achievers doing differently? How is it possible to get more done, scale your business, and have MORE time for what matters, not LESS? The answer is simple: high achievers realize that being a disciplined person is as crucial as any other aspect of their business. https://www.youtube.com/watch?v=4AoOx5OIRhc It’s what you need, but it’s not what you think. You can’t hustle and grind into your ideal life. Our guest, Craig Ballantyne, shares with us an alternative definition of becoming more productive through discipline…and how working less may actually get you where you want to go. Intrigued? Join us for a conversation with “The World’s Most Disciplined Man,” author of The Perfect Week Formula, The Perfect Day Formula, and Unstoppable, coach, and builder of multiple 7-figure businesses. If you want to achieve more than you thought possible, while working less… tune in now! Table of contentsWhy is Craig Ballantyne the World’s Most Disciplined Person?Becoming More Productive Creating Systems in Your DayWhy Value-Alignment MattersAbout Craig BallantyneGet Free Copies of Craig Ballantyne’s BooksBook A Strategy Call Why is Craig Ballantyne the World’s Most Disciplined Person? [2:30] “It came about…because about 10 years ago I was finishing up my career in the fitness industry, and I was starting another business, helping entrepreneurs be more productive. And some of my friends would be like, ‘Man, how do you get so much done?’… And they first started calling me the most productive person. Then that just kind of morphed into the most disciplined, because in order to be productive, you really have to have discipline.” Craig Ballantyne’s journey began as a fitness coach, where his intense structure and repeatable routines laid the foundation for his later success as an entrepreneur and author. His book, The Perfect Day Formula, outlines the core of his philosophy: that sustainable habits, not fleeting motivation, drive lasting success. Craig has a reputation for extreme consistency. He is known for waking at 4 a.m., sticking to strict routines, and following a minimalist daily structure that eliminates decision fatigue. It’s that level of commitment that earned him the title of the “World’s Most Disciplined Man.” However, the way Craig Ballantyne identifies a disciplined person may not be what you’d expect. Craig shares that most people define discipline as additional tasks to do.  [3:20] “I actually take the opposite approach, and I call it effortless discipline. And what this is, is it’s really not using willpower, it’s not making your life harder. It is simply building systems into which success becomes automatic.” This same principle applies to financial habits. Just as Craig relies on systems to eliminate friction, tools like Infinite Banking help you automate good money behavior by controlling your personal economy. While being a disciplined person is indeed about waking up early and sticking with routines, it’s also about building systems that work for you, whether in business, fitness, or finances. Becoming More Productive  [5:40] “…I joked that I was lazy and undisciplined because I didn’t have the systems and stuff at home in order to be effective, disciplined, and productive. But anybody can build the systems around themselves to be successful.” The trick, Craig asserts, is not adjusting your life to fit his productivity principles and systems. Instead, you adjust the systems to fit your life. For example, he frequently shares the idea of “attacking your morning” with his audience. Some may interpret this as a call to wake up earlier, however, Craig recognizes that many people are night owls. So it’s less important when people wake up, and more important that whatever time they wake up, they make use of that time.  If you’re wondering how to be a disciplined person, it starts with designing a routine that eliminates...

How are whole life insurance dividends and interest rates faring in this low interest rate environment? Is today's long stretch of low interest rates a bad sign for whole life insurance in the future? https://www.youtube.com/watch?v=FYMHKtVtVKI Today, we're having a candid conversation about today's interest rate environment, the impact on bond rates and prices, and how that impacts whole life insurance dividends. If you want to know how your whole life insurance will weather any environment… tune in now! Table of contentsThe Role of Bonds on InsuranceHow Do Insurance Companies Invest?What About Policy Loans?Life Insurance Companies Invest ConservativelyHow Do Bonds Work?What a Portfolio of Bonds Means for Insurance CompaniesWhy You Shouldn’t Worry About Low Dividend RatesAdditional ArticlesBook A Strategy Call The Role of Bonds on Insurance Bonds play a significant role in the dividends you receive as a policyholder. This happens because life insurance companies invest heavily in conservative bonds. So rising interest rates should lead to higher declared dividend rates. Similarly, a falling Federal interest rate will likely result in a decreased dividend rate.  Are there long-term effects of a low interest rate environment? Well, not to spoil things completely, but life insurance has been around for a long time. It has survived many low-interest rate environments, paying dividends through wars, depressions, recessions, and much more.  We’re going to dive deeper into why this is, and how life insurance is still one of the safest choices for your money.  How Do Insurance Companies Invest? When you pay premiums, the insurance company doesn’t just throw that money into a savings account and wait. They actually put the money to work. Some of this money goes into securities, however, it’s a minuscule amount. Many companies have anywhere from 0.58% to 2.49% of their portfolio in common stock.  The much more significant portion of life insurance company’s investments is in bonds—either corporate bonds or treasury bonds. Bond investments often range from 60.2% to 75.5%.  Then, there are preferred stocks, which work similarly to bonds because it produces interest. Additionally, preferred stock means that stockholders get paid before anyone in the common stock gets paid. This means preferred stockholders have low liability. The range for preferred stocks is about 0.25% to 1% of the company’s portfolio. The next biggest investment in an insurance company’s portfolio is going to be mortgage-type investments. Companies allocate anything from 0% to 16.3% of their portfolio to mortgages. To reduce risk, they invest in high equity mortgages. Real estate investments, separate from mortgages, range from 0.33% to 1% of the investment portfolio.  What About Policy Loans? The last kind of “investment” life insurance companies make is contract loans. And these are the loans that insurance companies offer to policyholders. Contrary to popular belief, when you take a loan, you’re not taking a loan from yourself. The life insurance company is giving you the money because your cash value is backing the loan. This also means that when you pay interest, you’re paying interest to the life insurance company, not yourself.  Life insurance loans make up anywhere from 2% to 7.24% of an insurance company’s portfolio.  Policy loans, even in a low-interest rate environment, are great for insurance companies, and by extension you, as the policy owner. It all comes down to the way mutual companies are structured and the dividends they pay. In a low interest rate environment, with many loans fixed at about 5%, this is actually some of the greatest returns companies get during such times. Plus, they can take comfort knowing all loans are backed by cash value.  This is beneficial to you, the policy owner because you want your insurance company to do well. You partake in the profits of the company,