The Money Advantage Podcast

Do you have a life insurance policy you’re concerned may not last, lacks guarantees, or may lapse, and you’re wondering how you could trade it in for a better model? The good news is that you have options, and you’re not stuck forever! Enter: the 1035 exchange. But, a strong word of caution: you need to understand what this entails and when it might hurt instead of help you. https://www.youtube.com/watch?v=xzmzl8TkMDM In this episode, Bruce and I discuss when you should use a 1035 exchange with life insurance. If you want to know the pros and cons of a 1035 Exchange--tune in below! In this episode, you’ll learn: What a 1035 exchange is and how it works.The reasons why (or why not) to do a 1035 exchange.Challenges you may face during the process.And more! Table of contentsWhere Whole Life Insurance Fits Into the Bigger PictureUnderstanding the 1035 ExchangeReasons for ExchangingReasons Against ExchangingWhat You Really Should KnowThe 1035 Exchange ProcessIs a 1035 Exchange Right for You? Where Whole Life Insurance Fits Into the Bigger Picture A 1035 Exchange could be what allows you to ensure your life insurance is there for your entire life, however, Privatized Banking with whole life insurance is just one part of the bigger journey. That’s why we’ve developed the 3-step Cash Flow System. It’s your roadmap to go from just surviving, to a life of significance, purpose, and financial freedom.  The first stage is the foundation.  You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable.  Then, you protect your money with insurance and legal protection and Privatized Banking.  Finally, you put your money to work, increasing your income with cash-flowing assets. Understanding the 1035 Exchange A 1035 Exchange is available through a provision in the IRS tax code, which allows you to transfer specific assets into assets of a like-kind without having to pay tax. Today, we’re talking specifically about the transfer of life insurance policies and why you would want to do a 1035 exchange in the first place. Most often, a 1035 exchange is on the table when you have a policy that no longer seems like an ideal fit for you. If your insurance policy was not designed with you in mind or lacks guarantees, you are likely a candidate for a 1035. Regardless, if a policy isn’t working for you, know that you’re not stuck—you have options. That said, it’s not always ideal to exchange a policy. It’s important to be informed about what a 1035 can and cannot do so that you’re not taken advantage of down the road. Reasons for Exchanging In some cases, it’s possible that you have a less-than-ideal policy design, and it feels like you’re continuing to pour in money with few guarantees. We see this often with universal life insurance. The problem is in the language of how some advisors pitch these products—flexible premiums aren't all that flexible. In the later years of an in-force IUL, the cost of maintaining your policy can increase because premiums are non-guaranteed. So even though you can make flexible premium payments, you could be under-funding it and lose your policy. To get a better idea of how your policy is performing, we recommend requesting an in-force illustration of your life insurance policy from your company. This will show you how your policy has performed and the projections for future performance. You will also see which guarantees you have, and which ones you do not. Use this information to assess whether or not your policy is doing what you want it to do. Ultimately, we see people exchanging policies that just aren’t living up to their expectations. If you don’t currently have a life insurance policy, take some time to think about what you want to accomplish—leaving a legacy, protecting your family, leveraging your cash value, or more? And if you do have a policy, check-in and make sure it’s accomplishing what you wa...

This week, we welcome John Moriarty back to the Money Advantage Podcast. In Part 1, we talked about building a family bank on a conceptual level. Now, we pull in real facts and figures to show you how private family banking looks in action. https://www.youtube.com/watch?v=ghvEU4tXzw8 If you have considered implementing family banking and didn't know where to start or what it looked like, this is your chance to pull back the curtain. And this is not speculation. John is showing us how he personally implements the Infinite Banking Concept to be the banker and build his family bank.  Now is your opportunity to see behind the scenes! You’ll see a high level of funding, cash value, how he is using policy loans, the internal growth of each whole life policy, the death benefit, and how he's getting a front-row seat to opportunities. Why? It's all because of this family banking system and tool for storing cash reserves. Table of contentsIn This Episode, you'll learn:Where Private Family Banking Fits into Your Cash Flow SystemThe "Mystery” of the Family Bank The Basics of a Family Banking SystemEnjoying Your MoneyPrivate Family Banking with Whole Life InsuranceWhy Would You Want to Borrow Your Own Money?The Long GameStart Your Family BankGet the Moriarty 11-Year Case StudyBook A Strategy Call In This Episode, you'll learn: What it takes to become your own banker and start a family bankHow to build a family bank with whole life insurance policies over timeWhat you can and cannot do with a whole life insurance policyWhy you should not fear interest chargesHow to structure your repayment strategy Where Private Family Banking Fits into Your Cash Flow System Family Banking is just one step in the greater Cash Flow System. It fits into Stage 2, a part of keeping and protecting your money.  We said before that Privatized Banking is like the peanut butter to your cash flow sandwich.  It’s wedged between Stage 1 – keeping more of the money you already make – and Stage 3 – increasing your cash flow from investments. And it helps you do everything else better. Infinite Banking increases your financial efficiency, enables you to keep more of what you already make, amplifies your cash-flowing asset strategy, and accelerates your time and money freedom. The Infinite Banking Concept is the how of keeping and protecting your money.  And a whole life insurance policy is the what. The "Mystery” of the Family Bank The idea of Infinite Banking, and thus family banks, is often shrouded in mystery. Mainstream financial advice makes it seem more difficult and unattainable than it is. Yet we know that what it boils down to is sound money principles--how you take control of the banking function yourself. If you consider yourself to be a disciplined person, you can implement and benefit from family banking strategies.  The Basics of a Family Banking System While saving is the first component of private family banking, Infinite Banking can be considered a system for cash flow management. A whole life insurance policy offers a way to take your savings and optimize it from a cash flow standpoint. While this concept is not new, whole life insurance policies became more publicized when Nelson Nash wrote Becoming Your Own Banker. The benefit is that you can customize whole life insurance to perform in ways suited to your goals. Then, you can leverage the cash value of your life insurance to take out loans against your policy, instead of going to the bank. And all the while, your policy cash value continues to grow, uninterrupted.  With the right strategies, you can finance virtually anything you can imagine. Can you say the same for banking institutions? Your personal and business economies can both benefit from your ability to leverage your assets.  Enjoying Your Money In a well-structured strategy, not all of your “moves” have to be related to wealth accumulation or investments.

https://www.youtube.com/watch?v=jFbebed_F78 Want to know what happens to your real estate portfolio after you’re gone? In this episode, we’re talking with Ron Phillips—CEO of RP Capital, a real estate brokerage—about his client who passed away. It turns out, his family didn’t even know what assets he had, or what to do with them, and it almost cost them a fortune in taxes. Tune in to hear what hoops they had to jump through, and how to avoid the same wealth transfer risks, so you and your family can be much better prepared.  Table of contentsIn this episode with Ron Phillips, you’ll learn:Where Legacy Fits In The Bigger PictureLegacy & Wealth Transfer Risks, Conversation Highlights from Ron PhillipsHow Mindset Affects Your Real Estate DealsRon’s Real Estate BusinessPlaying to WinRon's ClientsWealth Transfer RisksWills and ProbateWhat is a Legacy?Who is Ron Philips?Links and MentionsWant to Talk About Family Banking with Whole Life Insurance?Thanks for Tuning In! In this episode with Ron Phillips, you’ll learn: The importance of managing your mindset in lifeThe costs of not preparing and communicating your legacy wellHow to ensure your assets do the most good for your family even after you’re goneWhy it’s crucial that your heirs know what you haveThe wealth transfer risks of putting off your estate planningHow to make leaders in business and in your family Where Legacy Fits In The Bigger Picture Creating a legacy is the capstone of a life well-lived.  It’s the end goal of a life and business you love, and the greatest mission of our lives.  But we need an entire financial system to support our ability to do the most good. That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.   The first step is keeping more of the money you make.  This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund.  This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest. Then, you’ll protect your money with privatized banking, insurance, and legal protection.   Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy. Legacy & Wealth Transfer Risks, Conversation Highlights from Ron Phillips How Mindset Affects Your Real Estate Deals Once you figure out how to help others, you’ll begin to reap benefits in your own life. You’ve likely heard, “If you help enough people get what they want, you’ll get what you want.” In practice, you often get 10x that! (7:40) When Ron’s deal was rejected, he felt destroyed. Yet he woke up the next day, he reflected on what he had learned and studied. He knew as long as he could solve the problem at hand, he could make a worthwhile deal. Then, he ended up launching his career, which has only continued in its success.   (10:05) Real estate, life business, relationships—everything throws wrenches into your world. Nothing goes the way it’s supposed to, all the time. You have two choices in how you proceed. You can think that the world is against you, and that you can’t win, or you can figure out a way through it.  Ron’s Real Estate Business (12:38) Until 2005, Ron was in the business of rehabbing houses, until HUD changed the guidelines. So he “went out of business” virtually overnight. He essentially became a landlord, though it was not his goal. So Ron adapted. What he discovered was, many people don’t want to be landlords (much like himself). Though they do have an interest in real estate. Ron had the teams and the know-how, and now he helps other people find success when they lack the right resources. This started before turnkey operators were really a thing. However Ron resists the urge to describe his business as a turnkey operation.  (20:20) … people think when something is turnkey that they ...

We frequently discuss high cash value life insurance here at the Money Advantage, yet with the financial uncertainties of COVID-19, how safe are life insurance companies? https://www.youtube.com/watch?v=j9TZZf6hYjY How strong is the life insurance industry really? What impacts do today's low-interest rates, economic turmoil, and the pandemic have on my long-term growth rates and the policy guarantees? How do they affect the life insurance industry as a whole? Do insurance companies have enough reserves to weather low returns and higher costs? Are they able to maintain their guarantees? Are they still a safe place to put money?  If you want to see how low interest, low bond yields, and higher mortality can impact you as a policy owner, know if you can trust whole life guarantees for cash value and death benefit, and find out how strong this nearly indestructible industry is during unprecedented times, so you can know what to do, tune in now! In this episode on the safety of life insurance companies, you'll learn: How interest rates and bonds affect the life insurance industryWhy the US is better off right now than you'd thinkA brief history of the life insurance industryThe "checks and balances" of mutual insurance companiesAnd why COVID isn't impacting the industry as much as you'd expect Right now, many financial products and systems are in flux. That uncertainty may not instill confidence in your financial future. COVID-19 has certainly impacted the financial sphere, so let's unpack what that means for life insurance. The life insurance industry has long been a pillar of certainty and financial stability, and fortunately, we have high hopes that this will continue to be the case. Historically, these companies have outlasted even the toughest of financial straits. Table of contentsThe Safety of Life Insurance Companies is a Part of the Bigger Picture of Creating WealthHow Safe Are Life Insurance Companies Facing Internal Challenges?The History of the Life Insurance IndustryLow Interest RatesBond Yields Follow Interest RatesMutual Companies Are Positioned for the Long-GameMortality Isn't a Current ConcernSo How Safe Are Life Insurance Companies? Resources to Evaluate the Financial Safety of Life Insurance CompaniesReady to Start Your Life Insurance? The Safety of Life Insurance Companies is a Part of the Bigger Picture of Creating Wealth While the safety of the industry is a critical piece of protecting and preserving your wealth, it’s just one small piece of the bigger journey to creating time and money freedom. That’s why we’ve developed the 3-step Cash Flow System. It’s your roadmap to go from just surviving, to a life of significance, purpose, and financial freedom.  The first stage is the foundation.  You first keep more of the money you make by fixing money leaks, becoming more efficient and profitable.  Then, you protect your money with insurance and legal protection and Privatized Banking.  Finally, you put your money to work, increasing your income with cash-flowing assets. How Safe Are Life Insurance Companies Facing Internal Challenges? Many of the current concerns around whole life insurance relate to the low interest, low bond yields, and low internal growth we're seeing right now. We don't blame people for translating this slow-down as a warning sign. In addition, there's a possibility of higher claims in a pandemic—and will the companies have enough capital to weather that storm? If you're considering the impact of these factors on your life insurance policies, you're on the right track. It's important to stay ahead of the curve for your financial well-being. So, let's look into some of these concerns and find the truth in these statements. The History of the Life Insurance Industry Fortunately for policyholders, the life insurance industry has a long history of navigating tumultuous financial times. Historically,

https://www.youtube.com/watch?v=_KcOV9DhFkE Considering estate planning, but not sure how to make it work best for your family? Wondering how to balance your unique age, stage, personalities, and goals?  Does estate planning feel constrictive, or your ambitions seem bigger than what you can accommodate with a finite plan?  Do you wonder how you could possibly know what’s best 30 years from now when you’re not sure who your children will become?  Today, we want to help you wrestle the giant octopus of long-range planning. Bruce and I are talking with my estate planning attorney, Stephen Haynes, about solving special considerations with your estate plan. And this will be a special treat! We're not just going to talk theory about estate planning. We're inviting you in and showing a sneak peek into how we created an estate plan for our family.  So if you want to recognize the pros and cons of various estate transfer strategies, achieve the best balance of asset protection, creditor protection, control, and ownership, and find out how to design your estate plan to solve your needs best so you can strengthen your family with how you pass on wealth, instead of causing future challenges, tune in now! In This Conversation about Custom-Designed Estate Planning with Stephen Haynes Deciding how to transfer trust assets to children in a way that provides for their needs and helps them become empowered and not entitled. Solving the tension of gifting assets outright vs. in trust, and why you may consider one over the other. How to achieve the balance of asset protection and creditor protection with control and ownership, and reduce the risk of estate taxes. The role of the trustee, the goal of the trust to be a relationship, how to select a trustee, and how to set up your children to have a good relationship with the trustee. Hear how we're solving the potential problem of children seeing that a trustee is trying to keep them from their money. Finding the middle ground between leaving direct guidance to the trustee with rigid wishes vs. leaving discretion to the trustee. How to direct your money to be used the way you want, while also providing for the freedom and flourishing of each individual in generations beyond you. How you can use life insurance to create perpetual, generational wealth. Where Estate Planning Fits into Your Cashflow Creation System Encircling your family and assets with a bulletproof estate plan will maximize your peace of mind.  But it’s just one small step of a greater journey.   That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.   The first step is keeping more of the money you make.  This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund.  This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest. Then, you’ll protect your money with savings, privatized banking and legal protection.  This is where estate planning fits in.  You’ll know that no matter what happens to you, your wishes will be carried out, your assets will remain intact, and your wisdom will empower generations after you.  Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy. Take Action to Begin Your Family Legacy Today Take the next steps today. As Bruce says, "Make small steps, but quality steps." You don't have to leap the whole chasm all at once. Today's small step may look like taking a minute to write down what's important to you. This may become the start of your personal values or vision statement. Or, if you are ready for a conversation about your estate planning or life insurance, your next step could be scheduling a conversation.

Today, we’re talking with Andrew Weinhaus about why you need an estate plan.  He's an attorney who has worked in estate planning for 30 years. That means he knows it like the back of his hand. So, you get the tremendous value of hearing about estate planning in a way that's relatable, plain and simple! https://www.youtube.com/watch?v=xvoTfp63rT4 Do you wonder what happens to all of your stuff when you die?  Have you heard of estate planning, but are not really sure what it is and whether it’s for you?  No need to share your answers, but ... pssst ... this episode is for you!  Here’s a sneak peek into estate planning from a distance. It's like browsing, but without the annoying sales clerk asking if you’ve found everything you didn’t even know what you were looking for in the first place.  You can dip your toe in to find out if it’s really as scary and overwhelming as you thought. I promise, you’ll feel less out of place and more at home in the estate planning conversation. So, whenever and however you decide to move ahead, you'll feel better about those uncomfortable conversations. This conversation will help you make sense out of the basics. That means you'll know the why and the end goal. Those two things will automatically vacuum out the ambiguity in the process. So if you want to understand what an estate plan is and does, see how it's relevant to your life to do the long-term planning, and differentiate whether this is an important thing to take action on so you can feel the benefit of planning before you embark on the journey, tune in now! In this episode on estate planning, you’ll find out: The two main reasons you need an estate plan: if you can't make decisions, and if you die. The four reasons you want to avoid probate: cost, time-intensity, publicity, and creditor rights. Why you might want to pay for your parents' estate planning. The basic components of an estate plan and what they do: a medical directive, a power of attorney, a revocable living trust, and a pour-over will. The cost of an estate plan is often much less than the cost of probate. The difference is whether you pay a fixed, known cost now, with an attorney who is a trusted advisor, or a potentially much higher cost later with an attorney you can't choose. Concerns with real estate, businesses, and investments without an estate plan. How life insurance is the perfect equalizer to allow you to transfer family assets without having to liquidate. Why titling your assets correctly is one of the most critical steps of estate planning that most people miss. Why estate planning spells out exactly what you want to happen. How to plan for the care and financial needs of minor children. Why your estate plan can never be perfect and how to get it done anyway. Where Estate Planning Fits into Your Cashflow Creation System Encircling your family and assets with a bulletproof estate plan will maximize your peace of mind.  But it’s just one small step of a greater journey.   That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.   The first step is keeping more of the money you make.  This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund.  This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest. Then, you’ll protect your money with savings, privatized banking and legal protection.  This is where estate planning fits in.  You’ll know that no matter what happens to you, your wishes will be carried out, your assets will remain intact, and your wisdom will empower generations after you.  Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy. Who is Estate Planning Attorney Andrew Weinhaus?

Do you want extraordinary relationships with your kids?  Are you longing to build a family that’s strong and enduring, living life on purpose? Building family wealth is so much more than being a family with a lot of money. https://www.youtube.com/watch?v=Bb-QZAHc-uA So, if you aspire to do the most for your family, start with the building blocks. Family wealth is strong family relationships that start with flourishing individuals, combined with practicing the fundamentals of wealth creation. To get that, you have to know personally how you best provide value and contribute to others, and then instill that awareness and way of life into your kids. Those might seem like tall orders, but it is possible, and we'll show you how. Here to discuss the principles that drive family wealth is a family who is right in the middle of doing this - extraordinarily. In this episode, we’re talking with Jon and Missy Butcher, creators of LifeBook, who are living out their ideal life, by design – and we’re discussing how to build exceptional family wealth. So if you want to create the most positive and fulfilling family relationships, develop family strength that lasts for generations, and build family wealth that's more than money so you can carve out your family legacy, tune in now! In This Episode on Building Family Wealth, You'll Discover: Why core family values are so important for your home, and the four questions you need to ask yourself to discover them. The fundamental truth of all wealth creation. The difference between wealth and money. The three core values of this exceptional family. How to help your kids make money. How to transform your own life, so you can transform your family relationships ... and grow family wealth. Why consciousness is a process of self-discovery and self-creation. Where Building Family Wealth Fits In The Bigger Picture Building family wealth and creating a legacy is the capstone of a life well-lived.  It’s the end goal of a life and business you love, and the greatest mission of our lives.  But we need an entire financial system to support our ability to do the most good. That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.   The first step is keeping more of the money you make.  This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund.  This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest. Then, you’ll protect your money with privatized banking, insurance, and legal protection.   Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy. Who Are Jon and Missy Butcher? Jon and Missy Butcher created a life most people might call impossible. They have founded 19 impact-driven companies and philanthropic organizations together. They are financially free, enjoy a whirlwind romance, even after decades of marriage, and live in multiple countries a year, including the dream home they are building on a remote Hawaiian island. And they’re grandparents in their fifties - who look and feel a decade or two younger. Every single aspect of Jon and Missy’s life appears to defy society’s expectations: not because they’re smarter, more gifted, or luckier than anyone else - but because they designed it that way. Learn more about Jon and Missy's backstory of personal transformation here: LifeBook: Creating An Extraordinary Life. When Jon and Missy’s life transformed dramatically, their friends and family started asking them for their secret. And so Lifebook was born: first as a series of private retreats, and ultimately as a methodology that anyone can now harness to envision, plan, and achieve their greatest lives. Today, Jon and Missy’s mission is to spread Lifebook to ...

Not all whole life policies are designed equally.  Some that show up better on an illustration actually have a higher risk.   Rodney Mogen came back on the show to continue the conversation about life insurance agent commission and whole life policy splits.   https://www.youtube.com/watch?v=I4lq1Ltep2s We address the “Fear, Uncertainty, and Doubt” in the IBC world around policy splits. We answer questions about illustrations, changing dividends, agent commissions, effects on the death benefit, and policy tax status. Check out the first conversation here: 10/90 Premium Split & Blended PUA Rider Risks, with Rodney Mogen Life Insurance Agent Commission Why are we talking about life insurance agent commission? Because some people think that agents design policies based on how they are compensated. There are agents telling people that a 10/90 premium is the only one right way to design policies. According to them, anything else is just trying to earn a higher commission. We design policies based on the client's unique situation, versus using a cookie-cutter approach and designing all polices the same. It's important to have an abundance mindset when looking for the best life insurance companies to work with. We believe compensation is a good thing and should be based on the amount of value you receive. If someone bases their entire agency on the 10/90 split, then they are running their business based on volume. This approach is very similar to Walmart. There is absolutely nothing wrong with serving as many people as possible. The question is, how much value and time do you think you will get from that advisor? Your agent's commission should be the last thing in the agent's mind and your mind when putting individualized strategies and recommendations in place. Get Started with Privatized Banking There is not a one-size-fits all policy design for everyone. If you would like to find out exactly what policy will best help you accomplish your goals, book a call with our advisor team We'll get to know you, learn your objectives, and consider your complete financial picture before recommending strategies for your unique situation. Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

https://www.youtube.com/watch?v=gB_2RGtp_ts Will the work you do create a foundation for your kids and grandkids to prosper? Then how do you create long-term complete family wealth that does the most good for as long as possible?  How do you make sure the money you make, the business you build, and the real estate and investments you acquire do more than just benefit you during your lifetime?   How do you create rich kids, grandkids, and great-grandkids? To answer these questions, we're discussing creating generational family wealth, with Keith Whitaker.  Through Wise Counsel Research, he helps families grow into multi-generational enterprises, thriving together, preserving and growing family wealth. Where Complete Family Wealth Fits In The Bigger PictureComplete Family Wealth Conversation Highlights from Keith WhitakerAvoiding the Pitfalls of Leaving an InheritanceThe Role of ExcellenceThe Role of CommunicationTrustsHow to Communicate The Meaning of Your LegacyFirst Generation MindsetThe Rising GenerationWho Is Keith Whitaker?Complete Family Wealth Links and MentionsBook A Strategy Call In this episode with Keith Whitaker, you'll discover: Why wealth is more than money and how to grow all five types of capital. How to develop character so that generations after you will be wealth builders. The three keys of prosperous families who pass on multi-generational legacies of more than money. Easy, doable ways to write down and communicate the purpose of your trust. Why it's essential to have a first-generation mindset. The crucial role of the rising generation to prevent the crumbling and disintegration of family wealth. How to develop your children's character - the habit of choosing wisely. Why individual flourishing is the crux of complete family wealth. So if you want to create strong and successful families, raise children to be stewards, and know that your money will do the greatest good long after you're gone so you can empower future generations with wealth and wisdom, tune in now! Where Complete Family Wealth Fits In The Bigger Picture Building family wealth and creating a legacy is the capstone of a life well-lived.  It’s the end goal of a life and business you love, and the greatest mission of our lives.  But we need an entire financial system to support our ability to do the most good. That’s why we’ve put together the 3-step Entrepreneur’s Cash Flow System.   The first step is keeping more of the money you make.  This includes tax planning, debt restructuring, cash flow awareness, and restructuring your savings so you can access it as an emergency/opportunity fund.  This step frees up and increases your cash flow, so you have more to save, and consequently, more to invest. Then, you’ll protect your money with privatized banking, insurance, and legal protection.   Finally, you’ll put your money to work and get it to make more by investing in cash-flowing assets to build time and money freedom and leave a rich legacy. Complete Family Wealth Conversation Highlights from Keith Whitaker Avoiding the Pitfalls of Leaving an Inheritance [3:57] When we talk with family members and family leaders, we ask them what's really on your mind? What's keeping you up at night? You eventually get to the concern, what's this money going to do to my grandchildren and generations after that? Is it going to ruin them? And that's exactly the concern that we try to address. The Role of Excellence [5:41] Socrates said, "Wealth doesn't make a person or a city great and powerful and virtuous and excellent. It's excellence or virtue that makes an individual or a city wealthy." [5:53] In other words, no matter how big your bank account, if you don't have excellence of mind and character, then, in fact, you're going to be poor. [11:11] Families succeed in passing on complete family wealth, not just money, but also excellence, really do communicate.

Did you know there’s a secret hiding in plain sight that average rates of return will never tell you? In this episode, we’ll discuss Sequence of Returns and the risk they pose to your future income. Then, we'll show you exactly how to minimize the risk. https://www.youtube.com/watch?v=cq72TYq1zK4 So if you want to get predictable income from an unpredictable investment portfolio, NOT run out of money, and see exactly why you should supplement your investments with non-correlated assets … all so you can plan ahead and not be stressed with figuring out retirement income when it’s too late, tune in now! To understand the giant risk posed by the sequence of returns, let's lay a quick foundation. Table of contentsWhere Does Investing Fit in the Cash Flow System?The Lie in Average Rates of ReturnThe Order of Returns MattersTaking Income After Losses Is A Giant MistakeWhy Sequence of Returns is a RiskNon-Correlated Assets to the Rescue!So Here's How to Minimize Sequence of Return RiskGet Whole Life Insurance Today Where Does Investing Fit in the Cash Flow System? Investing is just one step in the path to time and money freedom. That’s why we have created the 3-step Business Owner’s Cash Flow System.  It’s your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom. The first step is keeping more of the money you make by fixing money leaks, becoming more efficient and profitable.  Then, you’ll protect your money with insurance and legal protection, and Privatized Banking.   Finally, you’ll put your money to work, increasing your income with cash-flowing assets. The Lie in Average Rates of Return Investment performance is often measured by the average rate of return. What is an average? It's simply all the returns over a period, divided by the number of years. But the average rate of return often doesn't even come close to mapping onto our actual experience. In fact, positive averages don't even mean you'll come out ahead on the money you put in. Why? In this article, I highlight the disparity between the average vs. real rate of return. Here's the main reason that averages don't even come close to telling the whole story: Negatives have a much greater impact on your account balance than corresponding positive returns. For instance, if you lose 20% on $100K, you would have $80K. To recover your loss, you wouldn't just need a 20% gain. That would only get you to $96K. It would take a 25% gain, a value greater than the percentage of loss, to bring your balance back to $100K. With that out of the way, there's another deception that lies in average returns. Negative 20%, plus a positive 25% lands you at a total return of 5%. Divide that by 2 years, and you get an average of 2.5% return per year. But your experience gave you a 0% actual return over those two years. So, saying you had a 2.5% average return gives a misleading impression that you're increasing your account balance with growth. But it gets worse. The Order of Returns Matters Not only do losses make a huge impact in account value, so does their timing. That's because early losses shrink your portfolio and make it very difficult to recover. Late losses don't do as much damage. Instead, they skim a little off the top of a more substantial account. Taking Income After Losses Is A Giant Mistake If you're using your investment account for income after a year of losses, you further depress account values. Imagine you were taking 4% from your investment account per year as income. If your returns are -20%, your 4% withdrawal amplifies the negative to a 24% loss. In fact, you may need to increase your withdrawal percentage to get sufficient income, further worsening the outlook and handicapping your future performance. To see exactly how these risks affect you, let's compare the outcomes of two identical investment po...