The Money Advantage Podcast

Ever wonder if the rich and famous use life insurance? https://www.youtube.com/watch?v=rWNYEK6iuio Life insurance is a private asset. That’s why you don’t hear a lot about it in the public arena. But wouldn’t you love to hear how life insurance is being used in the lives of people whose names you’d recognize? Today, we’re talking about some life insurance that’s as close to the spotlight as you get—coach of the Michigan Wolverines, Jim Harbaugh, agreed to have his compensation package include life insurance.  Today, we’re going to talk about one case where life insurance was used as executive deferred compensation that benefits both the employee and the employer. So, if you’d love to see how other people are using life insurance, join us for the conversation! Table of contentsWhy Don’t More People Talk About Life Insurance?Jim Harbaugh’s Life InsuranceBenefits for Harbaugh’s HeirsA Creative Way to Use Life InsuranceA Split-Dollar ArrangementOther Successful Uses of Permanent Life InsuranceBook A Strategy Call Why Don’t More People Talk About Life Insurance? Well, likely because it’s such a private asset. Whole life insurance shields policy owners from creditors, is not reported to the IRS, and it doesn’t have to be included on FAFSA forms. In fact, it can’t be used in lawsuits either.  The privacy afforded by whole life insurance is so valuable, and yet it also means that unless someone talks about their own experience, there’s no way to Google how much insurance someone has or doesn’t have.  Add to that the fact that many people still believe whole life insurance is only useful for death benefits or that it’s too expensive or complicated to understand. This combination of legal privacy and public misunderstanding is why many people (even professionals) rarely talk about life insurance in depth. But it’s not just for retirees or families. Whole life plays a major role in executive compensation packages, often structured to reduce tax exposure or retain top talent. By its nature, insurance is private, which means people who have it tend to be private about it. Now that someone in the spotlight—Jim Harbaugh—has publicly spoken about life insurance, it’s a little easier to put it into context for you.  His life insurance strategy is a perfect case study in how this under-the-radar financial tool gets used at the highest level. Jim Harbaugh’s Life Insurance Not only is Jim Harbaugh being paid $5 million a year as a coach, but the Jim Harbaugh life insurance package negotiated with Michigan adds another layer of long-term value. The university has loaned him $4 million to start a policy, with an additional $2 million a year for the following five years. This type of agreement is known as a split-dollar arrangement, which is commonly used in high-level executive contracts to offer long-term incentives and minimize tax liabilities. The ability to leverage his policy means he can take loans without incurring income tax. And as long as he keeps his policy in force, he does not have to repay the loan from the school until he passes on. A portion of the death benefit will pay it off.  In practical terms, this gives Harbaugh tax-advantaged access to cash throughout his life while still leaving a sizable benefit behind. This is what we call a win-win situation—where the school has a near-guarantee to receive their money back, they’ve secured Harbaugh as a coach, and Harbaugh gets the benefit of a policy.  Of course, there are stipulations to this contract. If Harbaugh leaves his coaching position before the contract is up, he will have to repay the premiums loaned to him upon termination or resignation.  This life insurance strategy isn’t unique to football coaches. It’s a smart approach for any executive seeking long-term financial security and flexibility without giving up liquidity today.  Benefits for Harbaugh’s Heirs Not only will Harbaugh benefit, but this arrangement actually acts as significant protection for his heirs. If Harbaugh were to pass on while Michigan is paying for the policy, they won’t be disinherited. They will receive no less than 150% of the premiums paid on the policy.  That means, if Harbaugh were to pass, and Michigan had paid $10 million until that point, his heirs would receive at least $15 million. The payout would also help the university recover what they had loaned him, and be able to cover the cost of replacing him.  A Creative Way to Use Life Insurance Ultimately, not only does this move allow Harbaugh to earn more money, as well as leverage power, but it also allows the University to invest in him through a cash value life insurance policy. A Split-Dollar Arrangement A split-dollar agreement is a way of structuring life insurance, where the employer and employee determine who will pay what. Then, they determine how much of the cash value and death benefit each party is entitled to.  In other words, it’s a shared agreement, often used to give executives life insurance coverage without the full financial burden falling on them. This type of arrangement allows employers to offer competitive benefits to their key employees. One reason is that insurance isn’t beholden to the same regulations as a 401(k) plan, for example. A 401(k), if offered, must extend to all employees of a particular group—usually on a full-time or part-time designation.  On the other hand, life insurance is more selective and at the employer’s discretion. Many companies use this strategy for their key employees. One notable difference in this scenario? Harbaugh has immediate access to his cash value, so he can use it along the way. In many arrangements, the company retains control over the cash value for a certain amount of time. That detail is what makes this setup so unusual. It resembles a split-dollar contract, but Harbaugh’s terms are more flexible than most. In typical cases, access to cash value is limited or delayed. This agreement is also keeping Michigan from letting Jim go, because both parties are subject to the contract. Harbaugh isn’t currently performing well as a coach right now, in the eyes of alumni. This agreement keeps his job secure for the remainder of the contract, because otherwise Michigan would have to buy him out of the contract.  That clause creates both protection and pressure: Harbaugh gets job security, but Michigan is financially committed even if performance dips. That’s the trade-off built into many split-dollar life insurance deals.  Other Successful Uses of Permanent Life Insurance The Jim Harbaugh life insurance strategy has actually paved the way for other coaches to have insurance in their compensation plans. Clemson, for example, has included insurance in coach Dabo Swinney’s contract. Other people of note? President Biden has four insurance policies with a mutual company. Walt Disney used his cash value to fund Disneyland. Stanford was able to keep its doors open during the Panic of 1893 thanks to life insurance. JC Penney funded his payroll through whole life insurance when the stock market crashed in 1929. There are dozens of popular examples of success with permanent life insurance, if you look for them. And in this age of information, details like this are becoming more and more available.  Aside from high-profile names, permanent life insurance has long been used in more technical but equally powerful ways—especially in business and estate planning. It’s a popular funding method for buy-sell agreements, where business partners use policies to ensure a smooth ownership transition if one partner passes away. Companies also take out whole life policies on key employees. This is known as “key person insurance,” which provides financial protection if they lose someone whose absence would hurt operations. On the estate planning side, whole life can be used to equalize inheritances among heirs or to leave a charitable gift outside of probate. These strategies aren’t flashy, but they’re remarkably effective when structured correctly.  Book A Strategy Call Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!  Book an Introductory call with our team today to learn how Infinite Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out how our privatized banking strategy gives you the most safety, liquidity, and growth and boosts your investment returns, read our free privatized banking guide to learn more and guarantee a legacy.

Need capital in your business, fast? Today, we’re talking about another way to get a capital infusion through business credit.   https://www.youtube.com/watch?v=J_qT49JxLlI The problem is that most business owners who want financing don’t get as much as they could, because they haven’t worked on the qualification process. That’s where CreditSuite can help. Ty Crandall has become a recognized authority in business credit building, business credit scoring, and business credit repair. So if you want to improve your fundability, build business credit, or get loans and credit lines… tune in now! Table of contentsBreaking into the Business Credit WorldCredit ReportingBusiness Credit vs. Consumer CreditThe Right Time to Build Business CreditBusiness Credit Cards vs. Consumer Credit CardsLeveraging DebtBuilding Business Credit Separate from Personal Credit1. Create Separation2. Get Your Credit In Line3. Find Companies that Report to Business Credit Reporting AgenciesFinding the "Sweet Spot"4. Start ImmediatelyBusiness Credit Gives You OpportunitiesTy Crandall’s OfferBook A Strategy Call Access to cash is critical for a business owner. While you don’t want to rely solely on credit for your business cash flow, you don’t want to be stuck in a spot where you need it and don’t have it. Breaking into the Business Credit World Ty Crandall's first company was a mortgage company that he quickly grew into a 7-figure company. And he rode that wave right up until the subprime mortgage crash, when things started to go south. While he thought he had access to plenty of capital, it turns out that wasn’t the case. After a few late payments, as he figured out how to navigate a failing business, the unexpected happened.  His credit card companies actually shrunk his credit limit down to what he owed, so that he could not spend anymore, which effectively tanked his credit score. Then they pulled the money out of his personal bank accounts, depleting his cash stores.  When something like this happens, other areas of your life can snowball—checks can bounce, and you can’t use credit to get out of the hole.  Ty worked overtime to get out of this hole, but he couldn’t find quality credit information anywhere. During this period, he learned about business credit, and realized that the information was nearly impossible to access. So he decided to compile information about business credit himself, and begin teaching people how to use it and why.  Credit Reporting Many people don’t understand the scope of credit reporting, because it happens in the background. Ty shares that a lesser known practice of consumer credit reporting is transparency from company to company. So if you have a late payment on one credit card, and not the others, the other companies will still know because it's in your report. Since all the companies have access to this information, your other credit providers can choose to lower your limits on that reporting alone.  That’s what happened to Ty when his credit imploded.  Business Credit vs. Consumer Credit Business credit is a “hidden gem,” even though it has been around longer than consumer credit reporting. If you’re a business owner, having business credit can help keep your business separate from your personal credit, so that you can have more privacy and safety... and avoid negative outcomes in uncertain financial times.  [11:20] “The main scores that are used are just based on how you paid in the past. That’s it! It’s just a mathematical interpretation of how you, on average, pay your bills. And I love that! How easy is credit, if we’re scored just based on: Do we pay on time? Do we pay late? Do we pay early? How late do we pay?” Consumer credit has many factors built into the score, and can take years of diligent monitoring to get to the top. But with business credit, you can build your score in as little as one month by getting a single account that stays in good standing with Experian or Equifax, or accounts that report to DNB.  The Right Time to Build Business Credit Business credit takes time to establish—not nearly the time it takes to establish personal credit, however you still need a few months. So how do you know when it’s good timing to establish business credit?  The best course of action, according to Ty, is not to wait. As soon as you establish a business, it’s a good time to start building your business credit. Otherwise, you risk negative outcomes to your personal credit. [13:00] “Business credit really is created to help your business fund itself. The biggest mistake... I see business owners make, is they try to fund a startup using consumer credit cards. And they make two essential mistakes that a lot of established entrepreneurs know. They think thighs will happen way faster than they end up doing, and they also think things will cost way less than they end up costing.” The reality is, starting a business will take more time and money than you think it will. And consumer credit cards were not designed to fund businesses. Credit limits are relatively low, because the average person doesn’t spend $50,000 a month on a credit card.  By using a consumer credit card, a few things will happen: your credit usage will be out of balance, and your credit score will take a hit. Then, you won’t be able to secure as much business funding through other means as you could have, because your personal credit score is low.  Business Credit Cards vs. Consumer Credit Cards Business credit cards, on the other hand, were specifically designed to handle large monthly expenses. The limits on business cards per SBA are ten to a hundred times higher than what you see in the consumer market. And those limits can increase within 30-60 days of opening an account.  Businesses just have a higher spending threshold than people do. When you’re building business credit, you want the early start by having the right kind of credit, because you have more access to more money, and your business can actually start funding itself on credit, while earning rewards and points, without relying on others.  [15:34] “There’s two ways you can get money into a business. There’s debt or equity.” Leveraging Debt Walmart, one of the biggest retailers in the US, leverages their business debt for success. 80% of what they sell is bought using business credit. That’s one of the secrets businesses master that consumers often don’t—the power of leveraging other people’s money (OPM). Walmart uses OPM to buy a product like Bounty paper towels with credit, and then use the money from the sales to pay that credit back. They have more money in business credit than all shareholder value combined. And that’s a large part of their success. Even Apple, who is sitting on billions of dollars of cash, leverages debt to strengthen their business. Building Business Credit Separate from Personal Credit It’s important to recognize that the steps are the same, whether you’re a “big fish” or small. Those who apply business credit for success are all doing the same thing.  1. Create Separation When you’re starting out, you must draw a clear line between personal and business credit. To be a legitimate business, you have to treat your business like it is already legitimate. That means creating an entity structure that separates you from the business, and identifying what industry you’re in.  If you don’t know what industry you’re in, specifically, you can run into legal and tax issues. The IRS and Credit Bureau use industry codes to identify typical business expenses for industries that are the basis for audits. To find out your industry code, visit NAICS.  Other steps to separate yourself from your business are to set up a business address, different from your own. Rather than a PO box, Ty recommends getting a virtual address if you don’t have a separate office location. Websites, a separate phone number, a new email address—these are all additional pieces that will improve your application for business credit AND make your business more credible. As a bonus, you add a layer of security to your business, so no one is reaching you from home.  More than 80% of all applications denials for business credit occur because the lender believes the application is fraudulent. PO Boxes, lack of congruency, and even too much "personal" info can make an application seem like a fraud.  2. Get Your Credit In Line Once you have your business details in order, and before you seek credit approval, you’ll want to get a DUNS number. This is just one of the ways to build and track business credit, which you can get here. The application is quick, and will help you get your business credit reporting started.  Once you have access to credit, it’s important to use it in a way that boosts your credit score so that you can get access to more funding when you want or need it. It’s not that you need tons of credit, but building your score gives you room to grow. You wouldn’t seek funding on a personal residence or a car without a solid credit profile, and this is the same concept. You shouldn’t wait until you need more credit to work on your score.  3. Find Companies that Report to Business Credit Reporting Agencies Finally, you’ll want to get approved for business credit. The most important detail is to get credit with a company that reports to a business credit reporting agency. Unlike consumer credit, business credit doesn’t report to DNB or other agencies by default. You have to seek companies that DO, so that you can get the benefit of a business credit score.  If you have good personal credit, you can take the simple path of applying for high credit limits that report to the right agencies, right out of the gate. The other option is to seek vendor credit, which doesn’t rely on personal credit to access. You can start with nothing and get access to credit.

For Infinite Banking, the ideal policy is a specially designed, high cash value, dividend-paying, whole life insurance policy with a mutual company. But some mutual companies, including Ohio National, have recently demutualized. So what is whole life insurance demutualization, and what does it mean? https://www.youtube.com/watch?v=TS9lWhrTpGU Today, we’re going to talk about demutualizing and how it affects Infinite Banking policies. You’ll learn: How a mutual company worksWhy you want a mutual company for Infinite BankingWhy life insurance companies demutualizeWhat to do if your life insurance company demutualizes Hopefully, we’ll cover the question on your mind. So, if you’d love to see what the future holds for Infinite Banking, join us for the conversation! Table of contentsOhio National DemutualizationWhat is Infinite Banking or Privatized Banking?What is a Mutual Life Insurance Company?How Do You Choose the Best Company?How Does Whole Life Insurance Demutualization Work?What's the Reason for Ohio National Demutualization?Book A Strategy Call Ohio National Demutualization On March 23rd, a very prominent insurance company, Ohio National, announced their demutualization and planned merge with a Canadian company. In anticipation of the questions, we want to debunk and provide some clarity about what it means to demutualize, and how it should or shouldn’t affect you. What is Infinite Banking or Privatized Banking? Conceptualized by Nelson Nash, Infinite Banking is a strategy of accessing the cash value of an insurance policy for leverage. It wasn’t a new function, however his ideas were new. And so, he wrote a book called Becoming Your Own Banker. By leveraging the cash value of an insurance policy, and borrowing against it rather than withdrawing from it, you can make your money do two jobs. A specially designed policy, for high cash value, with a mutual company, is the preferred method for privatized banking.  What is a Mutual Life Insurance Company? A mutual insurance company is a company in which policy owners are partial owners of the insurance company, rather than stockholders. As a partial owner, you are entitled to a portion of the company’s profits in the form of dividends. This also means that mutual companies are not beholden to investors. This allows them to operate on a much more conservative basis for long-term performance. A stock company, on the other hand, does not pay dividends to policy owners. Instead, investors pay dividends to stock owners, who may or may not have a policy. As a result, stock companies have to make short-term, risky decisions to appease stockholders and keep stocks up.  How Do You Choose the Best Company? In the world of life insurance, it can seem like there is an overwhelming amount of options. Do you choose mutual companies or stock companies, direct recognition companies or non-direct recognition companies, etc. How do you determine which are the best life insurance companies? First and foremost, we want to be clear that there are two main factors you should consider before anything else—the financial strength of the company, and the customer service. The former is important because you want a company that can meet its financial obligations.  Life insurance companies commit to paying every policyholder a death benefit. So are they making risky choices with their finances, or being more conservative? Mutual companies tend to think long-term and hold more reserves than stock companies. Even within mutual companies, it’s important to look at financial strength. Then, you want to look at customer service. How do various companies treat their policyholders? What are people saying? Because of the nature of permanent insurance, you’ll be working with a life insurance company for life. It’s important to know how their service is.  How Does Whole Life Insurance Demutualization Work? In the case of demutualization, a company is legally changing its structure from a private member-owned, dividend paying company to a publicly traded stock company. When this happens, a company has the option to offer stock to policyholders, although this doesn’t always happen. Otherwise, your cash value and death benefit remain intact. The only thing that really changes is that you stop receiving dividends. As a policy owner with a company that has demutualized, you have a few decisions. First, you can keep your policy in place. Another option is to 1035 your cash value into a new policy elsewhere. Depending on your policy age and cash value, a 1035 exchange may not be your best option.  When Bruce had a policy demutualize in the 80s, he ran an analysis on his options. Ultimately, he chose to keep his policy in place, because it kept his higher death benefit in-tact. One of the best things you can do is determine what you want from your money. Then, assess if your policy will still meet those objectives. The takeaway? Demutualization isn’t doomsday. In the end, you still have one of the most components of your insurance—the coverage itself.  What's the Reason for Ohio National Demutualization? When companies demutualize, like the Ohio National demutualization, it’s often for financial reasons. In a low interest rate environment, it is hard enough to meet obligations. If companies don’t act quickly enough, companies are faced with some tough decisions. Becoming a stock company allows the company to make quick, short-term decisions and hopefully improve their long-term performance.  Ultimately, when a company demutualizes, they’re trying to act in the best interest of their policy owners. This is because they’re seeking to continue meeting the needs of their policy owners. If your company has demutualized, we encourage you to seek someone who can help find the right next step. Finding yourself with a stock company doesn't have to be a reason for panic. Book A Strategy Call Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!   Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.

Inflation is in the news. Should you be concerned? What should you do to make sure you’re protected? https://www.youtube.com/watch?v=8l43QGtzmKg In today’s conversation, we’ll talk about inflation, the consumer price index, and how to stay financially strong so you can build financial freedom. Join us below for the conversation! Table of contentsWhat is Inflation?The Consumer Price IndexCPI Has Risen More than ExpectedWill the Fed Raise Interest Rates?Financial Freedom in the Face of InflationResources and Links:Book A Strategy Call What is Inflation? The most common belief about inflation is that businesses raise their prices to make more profit. However, it’s much more than that. Inflation is linked directly to the money supply. And when the money supply increases, prices tend to increase in proportion.  The feeling of inflation is that your dollars do not go as far—that prices are increasing for items, without the volume rising. It feels as though your dollars are worth less.  Investopedia defines inflation as “the decline of purchasing power of a given currency over time. ... Inflation can be contrasted with deflation, which occurs when the purchasing power of money increases and prices decline.” If you look at the overall inflation from 1913 to now, there was an average increase of about 3% per year. While in reality some years inflated more or less, we can expect an upward trend in the future—give or take.  The Consumer Price Index If you’re wondering how inflation is calculated, it’s calculated through something called the Consumer Price Index. Investopedia defines this as “a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.” What’s interesting is that not all the items you may see inflate are included in this basket of goods. So just because there is a certain inflation rate doesn’t mean that you’ll experience that increase exactly with all products.  The way you may experience inflation is going to depend largely on your geographic location. There’s personal inflation, city inflation, state inflation, national inflation, and international inflation. That’s why your money might go farther (or not as far) when you travel to other countries.  You can see the CPI history for yourself on the Bureau of Labor Statistics site.  CPI Has Risen More than Expected At the time of writing, the CPI has increased by 0.6% since March, and is up 2.6% since last year. That’s more than projected and represents the highest year-over-year gain since 2018. With inflation rates increasing, there’s considerable conversation about how that’s going to impact Americans.  Most notably, gas prices have skyrocketed. In March, gas prices increased by 9.1%, and is up 22.5% from last year. These fluctuations have had a big influence on the CPI in an indirect way. The CPI doesn’t factor in gas or energy directly because of how volatile the prices can be. And more importantly, because gas and energy prices directly impact the prices of goods like groceries, because of what it takes to produce and transport them.  Will the Fed Raise Interest Rates? Despite inflation projections, the Fed has made a statement that they’re unlikely to hike interest rates in response—even with a strengthening economy. Instead, they will continue to commit $120 billion a month to bond purchases. We see it this way—if the Fed raised rates now, and something stopped the growth we’re seeing, they wouldn’t have any “bullets in their gun.” It would be more difficult to drop the rates if needed, than to continue riding the low rates for the time being.  Financial Freedom in the Face of Inflation How do you create more certainty and create time and money freedom for yourself, even in the face of inflation? While saving is the cornerstone, regular savings won’t outpace inflation on its own. First, it’s important that as inflation rises, your income rises as well. Otherwise, any debt you have can stymie your growth. For example, if your credit card payment increases, or the feeling of that payment does, and your income does not, it’s a much bigger burden on you. Suddenly, you’re allocating more of your dollars on past purchases than saving for the future. The next step is to stay calm. What you need is a level head—before acting out of fear, slow down. Making rash financial decisions can negatively impact your objectives. Instead, focus on the principles of wealth: Paying yourself firstSaving a percentage of your incomeLeverage assets with safety and liquidityChoose assets that keep up with inflationSeek as much growth as possibleInvest in what you know and can control We’ve found that Privatized Banking strategies with cash value insurance help you to grow money safely and with liquidity. Then you can leverage that cash value to make smart investments that facilitate cash flow.  Resources and Links: US Debt ClockMarch CPI analysis Book A Strategy Call Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!   Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.

Love the idea of Infinite Banking, but want to see how it could apply to your business?  Looking for a way to improve your creditworthiness, financial stability, get great cash storage, capital reserves, to maximize your profitability in your business? https://www.youtube.com/watch?v=bAqNmDGzhyM Today, we’re going to talk about how to boost your business's financial performance with Infinite Banking—and how to use Infinite Banking in your business. You’ll learn: How storing capital in an Infinite Banking policy serves your businessWhat you can do with the cash valueWho should own the policyWho can use the policyHow to best leverage this Swiss army knife of an asset in your business  So, if you’d love to see exactly how to take your business to the next level with Infinite Banking, join us for the conversation! Table of contentsBrand New to Infinite Banking?The Art of Long Term and Short Term ThinkingInfinite Banking for BusinessA Place to Warehouse CashHow Quickly Are Premiums Available to Use?How Can You Fund a Policy for Business?Who Should Own the “Infinite Banking” Policy?Buy-Sell AgreementsInfinite Banking for Business Can Keep You ProtectedBook A Strategy Call Brand New to Infinite Banking? Infinite Banking is a concept originated by Nelson Nash, who realized that he could leverage his whole life insurance in his own business. This prompted him to write his immensely popular book, Becoming Your Own Banker.  Whole life insurance accumulates a cash value that earns dividends, and can multiply wealth by using policy loans to create cash-flowing investments. In fact, policy loans can be used for whatever you want (however, investments help you generate more cash flow).  The Art of Long Term and Short Term Thinking As Nelson Nash has said, there’s an art to marrying long-term and short-term thinking together. Too often, people choose one or the other—or they mistake long-term thinking for five-year thinking. True long-term thinking spans decades, or even generations. And it takes long-term thinking to make Infinite Banking strategies work, because whole life insurance is a long-term asset. You won't get rich overnight.  However, you must also have the foresight to see the short-term actions necessary to take the leap and set yourself up to benefit from Infinite Banking. Establishing good savings habits, making wise short-term decisions, and having a good business trajectory are all essential short-term actions.  You’ll make the best short-term decisions in your business when you think about the long-term impact. The more range you have in your “vision,” the better choices you’ll make today. It’s important as you move into business that you learn how to balance these short- and long-term trajectories.  Infinite Banking for Business A Place to Warehouse Cash Where are you going to store your capital? This is a question that any good business ought to ask—because if you’re making a profit, it has to go somewhere. And ideally, you also want that money to be earning while it’s in storage. While bank accounts and money markets offer a place to store money, they earn next to nothing. Whole life insurance, on the other hand, offers an alternative that far outpaces those accounts.  In addition, whole life insurance offers growth without risk. It’s non-correlated to the stock market and therefore is not subject to the same whims of the market.  You can use your cash value in times where profits are lean, or to make big-ticket purchases that will help expand your business. Your cash value can also help you secure financing for projects that the bank might find risky, yet may help you increase revenue. It can also protect your privacy from both creditors and the IRS.  How Quickly Are Premiums Available to Use? When you pay your first premium, your cash value is available for a policy loan within 30 days. The amount of your premium, however, can differ. When a policy is new, a good portion of the premium goes towards the cost of the policy. This is because there is more risk to the insurance company at this stage—if you were to die right after your insurance goes in-force, the company must pay your entire death benefit. So early premiums skew heavily toward that “funding.”  Over the years, as you pay your premiums, a higher and higher percentage goes into your cash value. And often, around the 7-12 year mark, your policy will “break even” and match the total amount you’ve paid in premiums. After that point, your cash value will always exceed what you’ve put into it (unless defaulting on a loan). Long-term thinkers will recognize the benefits—higher liquidity, higher death benefit, and higher growth. Policy “design” can also affect what percentage of your very first premium is available to use right away. With the right design, you can still have access to up to 70% of your contributions in the beginning. Your advisor can help you find the right design for you, based on your unique needs. How Can You Fund a Policy for Business? There isn’t one-size-fits-all. We’d love to tell you that there is one perfect way to design a policy, however it largely depends on what kind of growth you’re looking for, how much death benefit, and any riders or provisions you’d like. It also depends on how much money you can commit to premiums.  What we can say is that you can fund your whole life insurance policy in a variety of ways. Business profit is the simple answer, however many business owners fund part of their premium with business revenue, while the cash value pays for normal business expenses. Cash value can also buy investments like real estate properties. You can then use the profits from this property to pay back the loan and possibly premiums.  Who Should Own the “Infinite Banking” Policy? An insurance policy has several key people: The owner of the policy is the person who pays the premiums and has access to the cash value.The insured is the person whose life is insured by the policy. The beneficiary is the person who receives the death benefit payout.  One person can fulfill different combinations of these roles. For example, you can own a policy on another person AND be the beneficiary of that policy. You can also own a policy that insures your own life, in which case someone else would have to be the beneficiary. Or a different person can fulfill each role, technically. You can own a policy, or your business can own a policy, and there are different reasons for each. Often, companies or employers will fund a policy on a key person or employee. The employer has employable interest because key employees have experience, knowledge, and skills that would take considerable time and money to replace. They also likely have a direct impact on revenue. This allows businesses to use the policy, and it can often fund employee benefits as well.  It’s important to note that while the insured role cannot change, the ownership and beneficiary CAN change. Which means if an employee moves on, for example, a company can transfer policy ownership to that employee so that they can continue premium payments and have access to the cash value and death benefit.  Buy-Sell Agreements If there are two owners of a company, each owner can own a policy on the other person. Then the company is named the beneficiary. If one or the other owner dies, the death benefit allows the surviving owner to buy the other owner’s shares of the company. This can also help the surviving spouse if they wish to be bought out of the company.  A buy-sell agreement ensures that everything goes smoothly, and ownership of the company can be transferred smoothly. And because both owners have policies on the other, it creates a level playing field in the partnership.  Infinite Banking for Business Can Keep You Protected If you’re a business owner, consider how life insurance and an infinite banking strategy can help you grow and keep your business protected. Infinite banking for business can help you fund projects, protect your estate and your assets, and ensure the long-term success of your business.  Book A Strategy Call Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!   Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth  … plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.

In part 1, we started discussing the top questions about Infinite Banking that we hear all the time. This week, we’re finishing up the conversation, so that you can make a decision about Infinite Banking with confidence.  https://www.youtube.com/watch?v=xNKGjD5eEIg Hopefully, we’ll cover the question on your mind. (And if we don’t, check out Part 1 of this conversation to see if we’ve covered it there.) So, if you want to clear up your doubts, find out exactly what to do about your concerns, and know what to do next, join us for the conversation! Table of contentsStrategy vs. ProductYour Top Questions About Infinite Banking, Answered1. How do I compare illustrations effectively?2. Can’t I get better growth with an IUL?3. Can I use my home equity instead of life insurance?4. Do I make enough money to have or benefit from insurance?5. Is it the right time if I’m in a big personal or business transition?6. Am I too old for life insurance?7. What if I’m not in perfect health?8. I have stores of cash now, what if I don’t want to commit to ongoing funding?9. What happens if I become unable to pay my premiums?10. How can I trust this if no one I know is doing Infinite Banking?Book A Strategy Call Strategy vs. Product Before we begin our conversation, it’s important to note the difference between Infinite Banking as a concept, and whole life insurance as a product. As a product, insurance offers many benefits that we advocate for--growth, liquidity, asset protection, and more.  On the other hand, Infinite Banking refers to how you use your products. Insurance, on its own, isn’t “magic.” However, the way you design your policy, combined with the strategies you use to leverage that cash value, is what makes up Infinite Banking.  Now that you have that framework, let’s get into round two of your top questions about infinite banking. Your Top Questions About Infinite Banking, Answered 1. How do I compare illustrations effectively? When comparing illustrations between companies, it’s important to note that illustrations are projections, and are non-guaranteed. Although illustrations often have a guaranteed portion, you can expect dividends to be paid. Once dividends are paid, your entire projected illustration will change, as will projected dividends.  You can use illustrations as a good guideline, although so much will change from year to year, and the difference between companies will not be much different in the long run. If you’re trying to choose between a direct or non-direct recognition company, for example, the long-term differences are not that significant. The most important decision you can make is the decision to get a policy today, for the best results possible. Differences between premiums and face amounts will be more significant in your decision-making process than which company you go with.  2. Can’t I get better growth with an IUL? You could, potentially, get better growth in an IUL. However, IUL illustrations often leave a lot unsaid. For starters, there’s an increasing term insurance cost within the policy (rather than a level cost) that your growth will have to outpace. On another hand, IULs have fewer guarantees and more risk involved. People often misunderstand the language used in IUL contracts as well--people are told that they cannot lose money, so they buy policies with a false sense of security. And while you cannot lose money from the stock market component, you can lose cash value from the increased cost of your insurance, which correlates to the market performance. Everything in insurance has a trade-off, including the “market-returns” of an IUL. Ultimately, it’s up to you to decide the purpose of your money, as we mentioned in Part 1. With an IUL, you take on the risk. With whole life, the company assumes the risk. If you are seeking to save and grow money, whole life insurance is likely the better vehicle.  3. Can I use my home equity instead of life insurance? The more people learn about whole life insurance and Infinite Banking, the more they realize that building cash value is very similar to building equity in a house. The challenge, however, is how you access the equity in your house, via a HELOC.  This is often the vehicle used for velocity banking. The first roadblock is that you must ask the bank for access to that equity. If they see you as unfit to pay back a lien against the equity, they can deny you. The bank has the ultimate authority over your access to that cash. Insurance companies, on the other hand, will give you a policy loan without question because it is collateralized against your cash value.  The other downside is the unpredictable nature of the housing market. If your house were to lose value, your equity will evaporate. Your insurance is not subject to market volatility, and cannot evaporate or diminish in any way because of the contractual obligations.  4. Do I make enough money to have or benefit from insurance? We see this question often, and we’re happy to say that Infinite Banking can be accessible to just about anyone. You really don’t need a certain amount of income—instead, we recommend having a certain savings amount per month. Having good savings habits, and keeping that savings in a position of safety and liquidity (NOT risk), is the ideal start.  Wherever you can start is the best place to start--10% of your income, or $20 a month, and just gradually increasing what you have. While we recommend starting a policy closer to when you have consistent savings of $1,000 a month, it is possible to start with less. Creating sustainable practices will help you in the long run, and everybody starts somewhere. If you’re thinking to start, and you want to keep the door propped open, you can consider a convertible term insurance policy. While this won’t allow you to use Infinite Banking strategies, it will help you to lock in your insurability. So if you’re young and healthy now, you can ensure your ability to get whole life insurance in the future, regardless of any changes to your health status.  5. Is it the right time if I’m in a big personal or business transition? Ultimately, there’s no perfect time for insurance. Life is all about transitions--changing careers, starting a family, building a business, moving states, etc. If you’re interested in executing these strategies, and you have the savings habits in place, then the best time to start is right now.  Building up your cash value takes time, and the sooner you start a policy, the sooner you will be able to utilize the strategies of Infinite Banking. Conversely, the longer you wait, the less optimal your growth will be and the longer it will take.  If you’re starting a new business, whole life insurance can be a great place to store profits and a pool for funding investments.  6. Am I too old for life insurance? You may be surprised to hear this, but you’re probably not too old. We’ve seen people in their mid-70s get insurance and reap the benefits as well. Actuarial science actually supports this, by ensuring that dividends are paid in a way that will help all age groups benefit.  Additionally, you can own a policy on someone else. In other words, you can pay to insure someone else’s life, such as your children or parents, and still use the Infinite Banking strategy. 7. What if I’m not in perfect health? Health can be a big hurdle for many. Maybe everything besides health is in place—your age, savings, etc—yet you have a condition you feel may disqualify you. In reality, it may not be as big a barrier as you believe. High blood pressure or blood sugar, or even cholesterol, are fairly common conditions. If you’re treating this kind of condition, insurance companies look favorably on this, because they can be assured that you take care of your health. And most people can live a long and relatively normal life when managing these conditions. There’s also a possibility that you qualify, albeit at a higher rate. If this is the case, locking in that insurance now can guarantee your insurability in the future, should your health change, which may be worth the higher premium. And finally, if you cannot insure yourself, you can insure the people close to you and be able to benefit from Infinite Banking strategies. 8. I have stores of cash now, what if I don’t want to commit to ongoing funding? We’ve found that some people would like to plop a lump sum of cash into a whole life policy to reap the rewards and eliminate future premium payments. We like to think of insurance as a marriage—it’s a long-term commitment which, when nurtured, can enrich your life in infinite ways. It is not a one-night stand, where you make a payment and then forget about that relationship. From a pure tax standpoint, funding your policy in one sum will cause that policy to become a Modified Endowment Contract (MEC), which doesn’t receive the same tax benefits as a life insurance policy. This prevents people from abusing the tax benefits of insurance. 9. What happens if I become unable to pay my premiums? This is a really important thing to consider—after all, life happens! Fortunately, when you have a properly designed insurance policy and you’re unable to make premium payments, you have a lot of flexibility. If you’re in a lean year, you can pay only the base premium, rather than any Paid-Up Additions. Another option is to use a policy loan to pay that premium. While these increase your lien and accrues interest, it allows you to ride out tough times if you are anticipating a windfall in the future. You can also reduce your death benefit and halt your premium payments permanently. There are some additional options, just rest assured that you have plenty of flexibility. 10. How can I trust this if no one I know is doing Infinite Banking? We hear this question about Infinite Banking frequently.

Are you looking for a formula to grow your business? Cesar Quintero, Certified EOS Implementer and visionary of The Profit Recipe is here to help! So, if want to figure out how to tap into your purpose, get traction, and solidify a healthy team… tune in below!  Table of contentsUnique AbilitiesThe Power of VulnerabilityThe E-volution FlywheelThe Ikigai ConceptEOS and The Profit RecipeContact Cesar QuinteroAbout Cesar QuinteroBook A Strategy Call Is there a formula for business growth? As it turns out, there just might be, and Cesar Quintero holds a key to entrepreneurial success. Now, he's sharing his lessons about entrepreneurship with us. We're sharing the highlights of our conversation below. Unique Abilities Dan Sullivan of Strategic Coach teaches about unique abilities--the skills that we all inherently possess and are uniquely positioned to do. When we work from these abilities, we have more energy and create more value than when we do things we are not uniquely designed to do. And this idea is the foundation of Cesar's work with entrepreneurs. [8:15] “Everybody says that entrepreneurs can change the world, and businesses can change the world—and I’m a true capitalist. I really feel that if we can generate value we can change the world... I truly believe that only happens if the entrepreneur... really leverages their unique ability.” When you take care of your team, and have them working in their unique abilities, they can take care of clients and create more value. So focus on creating a team that thrives first—so your customers thrive naturally as a result.  The Power of Vulnerability Building a team of entrepreneurs who are working in their unique abilities takes vulnerability. It’s not always easy, but it fosters trust and growth. Opening up your numbers to your team, for example, takes massive vulnerability. However, the amazing result is that people take ownership of those numbers—they’re contributing, and that’s empowering.  [12:39] “I started my business at 24, and most people around me were older than me. Every room I went to... I was always the youngest guy there. I had to prove something to people, I think, in my mind I always had to prove that I knew, and I was right. And I think letting down my ego helped me become a better leader and a better businessman.” The E-volution Flywheel Cesar shares one concept behind his upcoming book, and the foundation of his business, the E-volution Flywheel.  [15:39] “After hundreds of different entrepreneurs that I helped, I saw a pattern... There’s five stages. The important thing with this cycle, is that true entrepreneurs and true leaders and people, we don’t go through this on a sequential aspect.” The stages of Cesar’s model are: Startup—You’re seeing opportunities in the marketplace. Leader by Design—Understanding what you can and cannot do. Team by Design—Delegating what you cannot or will not do to internal and external teams. Biz by Design—Create systems for your business to work without you, so you can continue to scale and create value.  Life by Design--Living life on your own terms. While these stages can be happening at once, Cesar has found that moving sequentially helps you get unstuck. So if you’re stuck designing your team, you need to look at the next stage of the cycle—Biz by Design—to get some clarity and get unstuck, and on and on. So rather than a linear cycle, the E-volution Flywheel deals with the stages on a random and cyclical basis. The Ikigai Concept In this Venn Diagram of sorts, Cesar shares with us the components of the Ikigai Concept. The heart symbolizes purpose. The star is for things you’re great at. The bottom represents things that make you money. Finally, the globe represents things that benefit the entire world. The intersections of these traits are what society often says should be your hobbies, profession, vocation and mission. [27:15] “The Ikigai concept is, 'What’s best for you? What makes you tick? What’s your purpose, what are you great at, where do you make money, and what’s great for the world?'” You need the intersection of all four for true fulfillment, and it’s a fallacy to think that you have to box yourself in—that you should only work where you’re skilled and make money, or only treat your skilled passions as hobbies.  Instead of striving for a work-life balance, strive to have a life you don’t need to escape from. If you’re seeking more balance because you don’t enjoy your career, it’s time to make some changes.  EOS and The Profit Recipe The EOS (Entrepreneurial Operating System) is a model that Cesar follows and uses to coach clients through their businesses. It equips entrepreneurs and teams with systems, so that they can be self-sufficient in the future.  [35:28] “EOS has 6 key components. So the six components are Vision, People, Data, Issues, Process, and Traction.”  Cesar uses EOS is his businesses, including The Profit Recipe, explained below.  [36:10] “What The Profit Recipe really is, is... a firm that’s based on this cycle. So we help entrepreneurs uncover their ‘why,’ understand what they’re great at and what they want to do, improve their leadership...creating peer groups and community...and we implement EOS and implement operating systems. So, as a firm, as the Profit Recipe, we do these five stages. EOS is mostly on stage four, which is Business by Design. So EOS happens to be one of the things that we do within our firm, when helping entrepreneurs evolve.” The Profit Recipe is ideal for entrepreneurs or business owners who feel stuck in some way—whether they’re wondering what’s next, or don’t know how to grow their business further. It’s also great for businesses who want to create more functional teams.  Cesar’s closing advice? Take it one step at a time and avoid the analysis paralysis.  Contact Cesar Quintero 786.222.6296 The Profit Recipe to get next steps, books, and tools to help you build systems and scale fast. About Cesar Quintero Cesar Quintero’s purpose is to empower leaders to build a business by design so that they live a life by design. His core values are to Share Vulnerably, Spark Action, Spot individuality, and Spread Passion. At age 24, in 2004, Quintero moved to Miami given the economic turmoil in Venezuela to pursue his dream of starting a business and helping others achieve a healthier lifestyle by founding Fit2Go. (The first corporate healthy meal delivery service in Miami.) In 2013, Quintero graduated from the MIT Entrepreneurship Masters Program and founded two new companies: RawBar2Go (the first licensed food boats in Florida) and The Profit Recipe, a coaching firm that focuses on empowering entrepreneurs through a journey of focus ON the business and not IN the business by implementing best practices and the Entrepreneurial Operating System (EOS).  Cesar has been an active Entrepreneurs’ Organization (EO) member for over 10 years and has held multiple volunteer leadership positions at the chapter, regional and global level for the organization. His passion for teaching and business have also compelled him to get certified as a Trainer for Traction implementation, Why Discoveries, EO Accelerator Program and EO Forum.  Book A Strategy Call Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!   Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth  … plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.

Are you considering Infinite Banking, but you aren’t sure yet if it’s a good fit for you, and you’d rather figure it out before investing time into a personal conversation with an advisor? Look, your concerns are absolutely valid!  But let’s let those questions propel you to action, not indecision. Today, we're answering the top questions about Infinite Banking that we have heard. https://www.youtube.com/watch?v=qVZbt1tog3w Hopefully, we’ll cover the question on your mind. So, if you’d love to clear up your doubts, find out exactly what to do about your concerns, and know what to do next, join us for the conversation below! Table of contentsWhat is Infinite Banking?Your Top Questions About Infinite Banking, Answered1. What if I don’t like whole life insurance?2. What if I don’t need insurance?3. Can’t I get better returns in the stock market?4. Will I lose access to some of my cash at the beginning?5. I already have a policy; is it a good one?6. I’ve heard many people talk about the "ideal" policy design—how do I know if I have that?7. Am I overpaying for insurance?The Reason for Infinite BankingBook A Strategy Call What is Infinite Banking? Infinite Banking is a strategy of using a financial product in a way that accelerates growth. We use specially designed, high cash value life insurance with mutual companies that pays dividends. These policies grow with guaranteed interest, and non-guaranteed dividends (although dividends are highly anticipated and have a good track record of being paid).  This means that you have access to cash that is growing, liquid, and will not drop in value. Infinite banking is often misunderstood, yet it’s a strategy that has been used for centuries by our country’s wealthiest people as a means to build and protect wealth. If you have questions about Infinite Banking, we highly recommend checking out this post to get some of your top questions about infinite banking answered.  Your Top Questions About Infinite Banking, Answered 1. What if I don’t like whole life insurance? When this comes up in conversation, we often come back with the question, “Compared to what?” In reality, life insurance is hard to compare to other assets because it is fundamentally different from many assets. Rather than getting hung up on the product itself, we encourage you to take a different route. When we meet with people, one of the first things we ask them to consider is the purpose of their money. If you’re looking for growth, availability, investment capital, etc—those are purposes.  When you can define what you want to do with your money, then you can determine the best products to use. Despite what you’ve been told, insurance may be the ideal asset for the goals you want to accomplish. It may not. However, you cannot judge it simply based on whether you like it—you have to see it as a means to an end.  2. What if I don’t need insurance? We hear this question often, for many reasons. Some people view insurance as something to protect their children. Others view insurance as unnecessary because they have enough money to “self-insure.”  We think the better question to ask is, “Do you want everything that comes with insurance?” Insurance companies will never sell you more insurance than you “need,” so we prefer to look at the benefits. Beyond the living benefits, insurance protects your estate and can help ease unexpected costs (including loss of income). Insurance helps your money go further and your assets last longer. 3. Can’t I get better returns in the stock market? Let’s start with this: life insurance is not an investment. When we compare insurance to investments, we’re setting it up for failure. We prefer to look at cash value insurance as an alternative to savings accounts. Investments have risk involved, and therefore the potential for different returns. Savings, on the other hand, provide certainty and liquidity. Your cash value is the money you will access in emergencies and opportunities. In fact, you can even use your cash value to make investments.  Insurance is a long-term strategy for wealth building (and asset protection). And Infinite Banking is a both/and strategy—you can invest AND save, and you can often yield better results in the long-term with both.  4. Will I lose access to some of my cash at the beginning? In the short-term, it’s true that your cash value will have a lower value than the premiums you pay into your policy. However, in the long-term, your cash value will surpass your premiums paid after a certain period.  It’s difficult for many people to deal with this initial drop in liquidity. However, this discrepancy between your cash value and your premiums in the beginning pays the cost of insurance. This protects the contractual guarantee that the insurance company will pay a death benefit when you pass on. This trade-off protects the strength of your insurance policy, so that you can reap the long-term benefits.  5. I already have a policy; is it a good one? While a policy you have may not be optimized, having any whole life insurance policy is often more beneficial than no policy. If you were to start over, you’ve lost the years of progress you’ve made by paying into this policy.  If you’re unsure of the design of your policy, you have options beyond surrendering or selling your policy. 1035 Exchanges are one way to convert a life insurance policy that you feel isn’t working. The other solution may be to fund a new policy that achieves your goals while keeping your old policy—so you can benefit from the cash value you’ve already accumulated and build more optimal cash value moving forward.  6. I’ve heard many people talk about the "ideal" policy design—how do I know if I have that? Policy design ultimately depends on what you want out of your policy. Some policies can be designed for better long-term performance, while others provide more early cash value to access. Some policies are designed for greater guaranteed death benefit over cash value.  Depending on where you are in life, you’ll have different goals for your policy design. It’s important to speak with a professional about what you’re looking for. There is no one-size-fits-all policy design.  7. Am I overpaying for insurance? This, like the question before, takes a sensitive consideration of what you want out of your policy. However, we recommend looking at the big picture—often, people sacrifice better long-term performance because of a high premium in the first few years. Know what you can afford and know what you want—and be willing to look at the long-term. Often, with Infinite Banking, you want to pay as much as possible. That’s because you’ll optimize your cash value and build more wealth and liquidity as you go. The only way you can truly overpay for your insurance is if you “MEC” your policy, or pay beyond what the IRS has set as a limit. (To learn more about MECs, and the changes made in the last few months, read our article on the 7702 Plan.) The Reason for Infinite Banking The best time to start a policy was yesterday. The second best time is today. The longer you can fund a policy, the more you can benefit from compound interest (not to mention lower premiums). After all, you can’t guarantee your future health or insurability. If you’re on the fence, we hope this discussion will help you see the real, applicable benefits of infinite banking beyond insurance.  Book A Strategy Call Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!   Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.

How are your New Year’s resolutions going? We’re almost three months into 2021, and it’s a great time to take an inventory of how you’re doing. This one simple morning routine I learned from Dan Sullivan has had a greater impact on my year than anything else. https://www.youtube.com/watch?v=EahEyM9wj-Q Today, we’ll talk about that one little idea that has the power to change everything for you. So, if you want to find out how to master your emotions, step into confidence, and get more done… tune in below! Table of contentsA Daily Morning Routine1. What’s my biggest danger for today?2. What is my biggest opportunity for today?3. What strengths do I have that I can reinforce today?Setting Your Foundation with a Morning RoutineBook A Strategy Call Dan Sullivan of Strategic Coach is an inspiration to entrepreneurs everywhere, which is why I always appreciate his words of wisdom. Dan calls himself a simplifier—he takes processes and makes them even simpler. When his email came across my inbox, I knew I had to share it with you.  A Daily Morning Routine If you’re looking to be even more successful, and find even more inspiration in your day, creating good habits is a great place to start. That’s why Dan Sullivan proposes his specific morning routine—one that has been a game-changer for him personally.  Having morning routines and habits can keep you grounded in an otherwise uncertain world, and it can also keep you on track with your goals. It starts with questions, which help to keep you focused on your goals. Here are the three things you should ask yourself to stay on a trajectory for success: 1. What’s my biggest danger for today? Or, "What am I afraid of?" At the heart of this question is structure. What you’re really doing is assessing your fears. What are you afraid of not doing, and how will that impact your success? Asking this question as a part of your morning routine sets you up to take action in the face of fear. And it keeps your fear from growing, like when you put off a project and it snowballs, progressively becomes more overwhelming.  This question, consequently, can also help you filter out tasks that aren’t meant for you. If you’re dreading a task, and you’re dreading the consequences of not doing it, it’s likely a task you should delegate. You’re still taking action by delegating, and it gives you more freedom to do what you want to do. 2. What is my biggest opportunity for today? This is your chance to examine what you’re looking forward to in your day. If you follow these opportunities that you’re excited about, and take action, you can put yourself further ahead. In the first question, we addressed the importance of handling fear and delegating tasks. Following what energizes you is another great way to identify how you should fill your day, and what tasks you should delegate. Good tasks, activities, or opportunities are ones that will leave you feeling as energized as when you started (if not more energized). 3. What strengths do I have that I can reinforce today? The third question in this morning routine is about building confidence. It’s about taking action so that you can practice your strengths, hone them, and come out on the other side more confident and capable. There’s no better way to celebrate your strengths than by using them! If you continually work on your strengths, you allow them to develop and blossom. If you don’t use them, they atrophy. You likely know that it feels great to use your strengths, so don’t be afraid to use them often. This will help you feel more confident and step into your full potential. It also helps you be as energized as possible.  Setting Your Foundation with a Morning Routine The world is so overwhelming right now, and if you're an entrepreneur, your mind is probably being pulled in a million directions. This exercise helps you simplify and focus on what you can do, today. It’s about pulling you into the moment and cutting out the background noise so that you can focus.  These questions are tied to the emotions you probably feel each morning—fear, excitement, and confidence. When you can work through these emotions and apply them to your day, you can move from a place of inaction to action.  There’s no better time than the present to plunge into the things you're excited about, take action on things you’re fearful of, and celebrate your strengths. Incorporating these principles into your morning routine will help you take action and be more successful. Book A Strategy Call Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!   Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth  … plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.

Do you want to be more profitable, and enjoy the success of a thriving business, instead of running ragged on the hamster wheel of chasing the next sale? Barbara Stackhouse is writing Profit First for Dentists.  https://www.youtube.com/watch?v=EzsWDyjLA2Q Sound familiar? It’s the specific application of Mike Michalowicz’s Profit First system, tailored to the dental industry, with their unique challenges and solutions. So, if you’re a dentist who would like to build a successful practice, or a chiropractor or physician, or even a business owner in another industry who wants to find out the secret code to profitable and sustainable business… tune in below! Table of contentsMike Michalowicz’s Profit First SystemLeave the Grind BehindThe Sales ProcessProfitability in Any BusinessSolving Business ProblemsFixed vs. Variable ExpensesPut Systems in PlaceWhy “Profit First”? Links MentionedAbout Barbara StackhouseBook A Strategy Call Regardless of your experience in the dental field, we think that Barb has amazing lessons to teach business owners. Her experience in Profit First systems make her an expert at organizing systems that help you keep more of your revenue. Mike Michalowicz’s Profit First System After discovering Mike’s Profit First system, Barb could instantly see how the Profit First system fit into the dentistry field, despite being a system geared towards CPAs. She contacted Michalowicz to see if she could go through his professional training process, despite being in a completely different industry. Now, not only is Barb a certified Profit First professional, but she is releasing a book for dentists to implement this process.  Leave the Grind Behind [7:50} “If you’re an entrepreneur, you get stuck in the grinding it out. You're the technician in the business, you’re the person doing it all. And it doesn’t have to be that way.” Too often, entrepreneurs enter the business thinking that they HAVE to be un-profitable for a while. They grind and work hard, and hope that in five years, their business will be where they want it so they can slow down a bit. To Barb, this couldn't be further from what should happen. Instead, entreprneuers need to work smarter and build out their own profit, so that they can be prosperous now, enjoy their practice, and set it up for decades of success. The Sales Process [8:11] “So the main other thing that I talk about—which is another big area that dentists struggle with, and even team members sometimes need training with too—is kind of the sales process in dentistry. And it’s actually the same sales process that I use myself when I talk with a client. It’s all about serving that client. And really putting the need for the sale over on the shelf and just connecting. Having that relationship first and not pushing.” Through her work, Barabara created a system to facilitate this sales process, called P SERVE. The P stands for purpose, and Barbara urges dentists or team members to understand their purpose before taking a call, and then truly giving service from the heart. SERVE, as an acronym, describes the steps in the process.  This methodology is something that Barb speaks on and teaches—to help dentists serve their clients first, knowing that the profit follows. Money flows by creating value—so serving and giving allows any business to flourish. This is very similar to Bob Burg's Go Giver mentality. [10:34] “The more you help people get what they want, the more you will get what you want.” Profitability in Any Business [10:53] “If you are an entrepreneur, and you open a business, you have a dream of being your own boss, probably. You want to call the shots. These are the common themes that I find. But you have to make a living at it. If you’re not profitable, then you have a hobby, you don’t really have a business. So I think that profitability has to be baked into the plan, if you will. It has to be a part of what happens from the start.”  What Barb has found in her coaching is that too often dentists opening their own practices aren’t paying themselves when they start out. What she helps dentists learn is how to pay themselves first so that they can continue to keep their practice open. It starts with having a plan.  The problem is that many businesses don’t follow a “Profit First” mentality. Entrepreneurs expect to not be profitable, or they’re "waiting for the leftovers." It can be rooted in scarcity thinking, yet once you pay yourself first, AND offer value to your clients, you can find true profit.  One key problem? People don’t really know their true overhead.  Solving Business Problems Here's what Barb identifies as some of the key problems that dentists or other independent medical practices face: [18:50] “So I would say that one of the big ones, especially now post-covid, is team. Its sad, but a lot of team members left the profession, because of covid... So there’s been big changes in their practice. Not all, but some younger teams.”  Barb has noticed that in dentist practices, one of the biggest expenses can be the team members, however they can also be the biggest asset. When team members leave or retire, this can change an entire practice. Often, clients become accustomed to the team members, and form relationships with them too--they can have a huge impact on client retention. And of course, the second problem is personal debt. Many dentists have mountains of student debt and don’t have hope for getting out of it. Then, of course, many dentists don’t know how to read their profit-and-loss reports and see how debt factors in. They wonder where their “missing” money goes, and often it goes to debt payments that don’t appear on the reports.  This is yet another reason for entrepreneurs to follow the profit-first system: so that they can pay down debt AND save for their futures. It's important to save and/or invest while paying down debt, so that you can tackle emergencies and opportunities that happen along the road to debt reduction. If you don't pay yourself first, this becomes a challenging task. Fixed vs. Variable Expenses [26:53] “The difference between fixed and variable: fixed expenses generally stay the same, or about the same, every month regardless of what the production and collections does. So in a dental practice, we’re producing, we’re delivering dentistry, we’re collecting that money. And we have these fixed expenses such as, I already mentioned, our team. So payroll expenses typically one of those things that are about the same every month, you know doesn’t really fluctuate much. So, our rent, our occupancy... pretty much stays the same. We can plan on that every month. And then our equipment, and our build-out loan.” The three expenses above are the big, fixed expenses in a dental practice. These likely aren’t much different from other businesses. A retail store, for example, is likely paying the same fixed expenses—payroll, rent, and leased equipment.  [27:17] “Then we have our variable expenses, and in dentistry I have four categories for those variable expenses.” Those categories include: Supplies Lab costs (where tests are run, for example) Marketing Business admin expenses—credit card fees, telephone bills, etc.  Because these things are variable, you actually have the most control—contrary to what you may think. Barb’s advice is to start with these variable expenses (since your fixed expenses aren’t going anywhere). You do this by determining what your supply budget is and planning out what you will buy.  Put Systems in Place Anything you can do to increase efficiency and reduce costs helps everyone in the dental practice benefit. Barb often recommends that dentists who are interested in providing bonuses to their team create a separate team profit account. Then, if all expenses are paid and everything stays within the spending plan, once a quarter you can pay out profits to the team members.  Even better, if the team knows that there is a profit-sharing system in place, you can put them in charge of ordering supplies. Then they have incentive to work hard to stay within the spending plan and have what’s necessary for operation. The office becomes more efficient, and the employees know they get to reap the rewards too. Then finally, go through your line items and decide how to change spending. Determine what’s necessary for quality care, and remove what’s unnecessary, or get better prices or more efficient tools. Rather than having fiver different tools with five different functions, try finding tools with multiple functions. Ultimately, patients do not stay with your practice because of the tools or technology you have. This is true for dentists, chiropractors, or any other professional service. Clients stay with you because they have a good relationship with you.  Why “Profit First”?  [46:35] “[Profit First] is a cash flow management system that helps entrepreneurs understand that they have to flip the equation and set aside some money first, before paying all their bills. Because if you leave that money in one account, our nature is we will spend it. If we divide it up into multiple accounts, and we know what the purpose of those accounts are, our natural human behavior is that we will follow that system.” Links Mentioned Dentist’s Only Facebook Group Profit First for Dentists Facebook Page Email Barb at barb@moretolife.dental  About Barbara Stackhouse Barb puts relationships and the success of others at the heart of all she does. Her focus is on teaching dentists the simple skills required for a highly profitable practice. Her profitability model uses the Profit First System. Dentists choose Barb when they want to take control of their finances once and for all. They want proper solutions using simple steps. They are seeking sustainable profits for years to come.