The Money Advantage Podcast

Want to optimize your money and maximize your wealth and income for life, and curious about how we can help?  Been listening for a while and want to learn more about our company and what we can do for you? Today, we're taking you behind the scenes of The Money Advantage. https://www.youtube.com/watch?v=pS5o1gL_vzE So, if you want to get to know us, what we do, and why we do this work … tune in below! Table of contents“Why” The Money AdvantageRachel Marshall Bruce WehnerWhat is The Money Advantage Philosophy?Our 9-Step Signature ProcessFoundationProtectionIncreaseFinance is a Team SportBook A Strategy Call “Why” The Money Advantage Today, we’re sharing more about who we are and why we do what we do. First and foremost, the Money Advantage exists to help wealth creators build financial freedom. There are three key components to this wealth building: Cashflow StrategiesPrivatized BankingAlternative investments We’re your team of financial architects, and our goal is to help you get into a position where you never run out of money. What we so often see is people who make a lot of money, yet aren’t being as efficient as possible. This can create a lot of financial stress. Money is emotional, and that causes people to hold their financial state close to their chest. Yet by not talking about money, we do ourselves a disservice. So we also look for ways to help people improve their money mindset.  Rachel Marshall  Rachel Marshall is the co-host of The Money Advantage Podcast, co-founder of The Money Advantage, and Chief Financial Educator. The education that she provides, through podcasts and articles and videos, helps you understand your financial life so you can choose a way forward. Her role is to look for any way possible to help you understand how to keep control of your financial life.  Rachel has been a lifelong teacher—helping others learn the concepts she was learning herself. She looks most forward to seeing that flash of inspiration and awareness when someone understands something they didn’t know before.  Nine years ago, Rachel went into this business with her husband, Lucas. It stemmed from a desire to build their own financial freedom. And what they realized was missing, at the time, was liquidity. After recognizing the need of wealth creators to maximize cash flow and have access to capital, they recognized the tremendous value of Privatized Banking and began their own policy. Then, a near-death experience truly opened her eyes to the importance of the death benefit and helping others build the greatest legacy possible. Bruce Wehner Bruce Wehner is the Chief Cash Flow Strategist & Lead Advisor at The Money Advantage. Growing up in the 60s' and 70s opened Bruce’s eyes to the financial struggles of business owners like his father. After Nixon removed the gold standard, massive inflation made it difficult for businesses to stay afloat, and interest rates were continuing to spike year after year. This got him thinking about personal finance, and how businesses worked.  He then began a teaching career of 17 years, in which he experimented with entrepreneurial pursuits. It was at this time that he became involved in the insurance business and real estate. Eventually, he landed in St. Louis, where he remains today, and works with e3 Consultants Group and The Money Advantage. Bruce is also a certified Nelson Nash practitioner, which means he focuses first on guarantees. Wealth building is first about the money you protect, not hitting a home run. So he helps people create financial teams and protect more of their wealth through guarantees.  What is The Money Advantage Philosophy? The financial status quo is to build the biggest pile of money possible and then live off of that money in the future. What happens too often with this strategy, is that the money is in the control of everyone else--investment managers, banks, and mortgage companies. This typical philosophy takes the control out of the individual’s hands. Then, that money is subject to future taxes, which are unknowable. Yet taxes are likely to increase, not decrease.  We believe that cash flow is the way to build time and money freedom. This is the money that you get to keep from day to day. This can be through regular income, business revenue, or from cash flowing alternative investments. The freedom that comes from cash flow then gives you the freedom to choose what you do with your time.  We don’t believe in the typical philosophy of retirement, where you build a pile of cash and then stop working. We would much rather see people enjoy their lives from day one and continue to thrive well into their older age through fulfilling wealth creation. And that looks like gaining control.  Our 9-Step Signature Process This is the exact process that we use to help people like you master financial control and freedom. This will help you fulfill your money’s highest purpose, so you can live a life of the highest significance. We split these steps into three phases: Foundation, Protection, and Increase. Foundation This is where we start with anyone we work with, which helps take you out of “survival mode.” This can happen at any income level, by the way, when your money isn’t working with you and you never seem to have enough.  Money Mindset—In the first step of our foundational process, we help shift your mindset around money. We help you recognize the thinking patterns of abundance, stewardship, and value creation. This mindset of wealth is the foundation of your success.Cashflow Awareness—Once you’ve mastered your mindset, it’s time to assess where your cash is flowing each month. Though it can be a painful process, this step moves you from confusion to clarity. The Money Finder—Once you know where you’re starting, you can identify leaks and plug holes in your financial buckets. This can look like loan repayment strategies, restructuring your insurance, or optimizing taxes.  Protection Once you’ve completed the first three steps, you can protect the wealth that you have. This phase ensures that if something happens to you, no one can swoop in and steal the wealth that you’ve created for yourself. It’s better to do this before you need it, because it’s often too late to put in place when an event occurs.  Livelihood Safeguard—Insurance can protect your income in the event of disability, poor health, and death. Liability insurance can protect you from scenarios you may never dream of. This step takes you from risk to safety.Legal Security—Estate planning and business entity formation can protect your investments, business, and your entire estate from creditors. Privatized Banking—Setting up a savings strategy through Privatized Banking can protect your money in many ways.  Increase Finally, we have the increase phase. Typical financial philosophy would suggest this first. However, without the other phases, your money is at risk and out of your control.  Unique Ability Investing—Once you know yourself, you can leverage your unique abilities for the right investments. This can help you choose the best investments that win, and move from aimless to focused. Time and Money Freedom—If you can maximize your cash flow through unique ability investments, you can build freedom of money and time. You won’t have to work for money, instead, you can make your money work for you. Legacy Creation—By creating a legacy through proper strategy, you can build generational wealth and expand your impact and significance.  Finance is a Team Sport The Money Advantage is a team. When you work with us, you work with our whole team, not just one advisor. That means we leverage the unique abilities of each team member to help fulfill your needs and nothing falls through the cracks. We feel that this helps you get more education, more access, and more expertise.  What sets us apart is our family office model, where you access a coordinated team of experts working together on your behalf towards your goals. Our Integrated Resource Network helps you with every aspect of your finances. Tax planning, investment strategy, insurance, and much more. No one person can be an expert in it all, and when you work with us, you’ll be able to have a well-rounded strategy with all of our experts. That’s how you’ll know that every aspect of your financial life is going to work in complete harmony. 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.

Now and then, you have the chance to meet extraordinary people and learn more from their story than you ever thought possible. This conversation with Steven Sashen of Xero Shoes is one of those opportunities! https://youtu.be/ZxaGb90SUtY In this episode, we’re talking with Steven Sashen about shoes, speed, and success. He’s one of the fastest men over 55 in the country, co-founder of Xero Shoes that’s creating not only a brand, but a movement, he’s also turned down a $400K funding offer on Shark Tank. So if you want to learn from a successful entrepreneur, so you can build a life and business you love … tune in below! Table of contentsIn the Business of Making Xero ShoesFrom DIY to Worldwide RecognitionTurning Down Shark TankXero Shoes: A Fast-Moving CompanyChance vs. ControlTaking Responsibility of Your FinanceCash Flow in BusinessXero ShoesAbout Steven Sashen We believe that his ability to create a community and a movement is something that you can benefit from as business owners and entrepreneurs. No matter where you’re at in the journey, we think you’ll find something valuable in this conversation with Steven Sashen. Enjoy the show notes below. In the Business of Making Xero Shoes When you think of how a business gets its start, you probably think of all the planning, designing, and prep work that goes into a brand. However, that’s not quite how things happened for Sashen. [3:27] “The way it actually happened is my favorite thing, which was a complete accident. So what happened was...a little over 13 years ago, I was 45, I got back into sprinting after a 30-year break, which I don’t really recommend. I was getting injured constantly for like two years. And finally, a friend of mine, who’s like a world champion runner...said, ‘Try running barefoot and see if you learn anything about why you might be getting injured.’”  This planted the seed, and Steven discovered that running barefoot allowed him to correct his movements with more ease and fluidity. From DIY to Worldwide Recognition When Steven Sashen finally hit his stride, everything changed. That’s when he knew he must lock-in the benefits of this natural movement. He had heard of natives in Mexico who ran with sandals made from scraps of tire. So he created his own version. With some rubber from a shoe repair shop and cords from Home Depot, he created what we could consider his first prototype. Here and there, friends would request their own. Then one day, he was approached with the opportunity that started it all.  A barefoot running coach was writing a book, and said that if Sashen treated this hobby like a business and made a website, he’d feature it in the book. In the following three and a half years, Xero Shoes became a DIY sandal-kit company. Now, Xero Shoes sells a complete line of casual and performance shoes, boots, and sandals.  Turning Down Shark Tank Early on, Xero Shoes appeared on Shark Tank. And though they were offered $400,000 Sashen turned the money down. This sparked a lot of discussion on whether he made the right decision.  [12:38] “People kept telling us all along that we should be on the show, we didn’t even know what they were talking about. And then we found the show.” Steven Sashen realized that, were they to get on Shark Tank, regardless of the outcome, it would be free exposure to millions of people. [13:37] “The thing that was really valuable is that once they told us they wanted us on the show, it really made us focus on who were are, what we did, and what we wanted.” [15:40] "So the key moment though, was that thing with Kevin, where he offered us 400 grand for half the company, [and] we were offering 8% of the company. We had done a lot of research about valuations of footwear brands. And so we knew what the range for yes and no was, we were very negotiable. We just didn’t get that far, and so it was a non-starter.” Xero Shoes: A Fast-Moving Company [20:12] “You’re constantly running two races when you’re running a business. One is a speed race: velocity is important. The more you can do, the better. The faster, the better. At the same time, there’s certain things you can’t rush. And luckily, my wife and I have different skillsets and mindsets. So I’m the sprinter. She’s the detail-oriented, long-distance person.” [20:48] “The line that I have is that all businesses rise to the neuroses of their founders.” Essentially, combining skill sets in a business is the key to success. The more you can balance out, the greater accomplishments you can achieve together. This is the model that Steven and Lena have operated under, and found outstanding success. Chance vs. Control In business, Steven Sashen shares some interesting insight. He relates it back to barefoot running, where he had to analyze the information his body was giving him and make corrections, all in a split second. [28:02] “It’s a weird thing, because you’re going to take in all that information and you’re going to make a decision, and you’ll either be right or not. It’s not like you can take it all in and you’re going to get the right answer...Like the line…’1000 miles begins with a single step.’  I asked a guy who translates from Chinese, I said, ‘Since there’s not a tense thing in Chinese, isn’t it as true [to] say a journey of 1000 miles is a single step?’ And that’s the way that I think it’s like; you take a step, you reevaluate. You take the next step, you reevaluate as best you can.” He and his wife thought Xero Shoes would always be a DIY sandal company. Yet if they had stuck to this plan instead of reevaluating, their lives and their business would be completely different. This is the difference between a vision and a set goal.  Taking Responsibility of Your Finance Living successfully and building time and money freedom isn’t simply about finding the perfect product or advisor. At the root, it’s about finding the best process for yourself, and taking responsibility and control of your circumstance.  [49:31] “As human beings, we’re looking for the things that will get us what we want. And if someone says, ‘Here’s a simple thing that will do that”...off we go. It’s rarely that simple. But when it comes to running or walking or hiking, you do become your own best coach.”  Finance is the same. The better education you can give yourself, the more you can learn and then trust your gut and take control, the better outcomes you’re likely to have. Without the education and the confidence, there’s no perfect product. Cash Flow in Business [50:50] “If you don’t know what’s happening with the money in your business, you’re not going to have a business. End of story.” [51:15] “We used to have what Lena referred to as the February problem. We had to pay for our product in December/January, it was going to land in February, and we weren’t able to sell it until March. So we had this February dip in income that we had to cover somehow...And if you don’t know things like that, if you can’t project--'Here’s when I don’t know how to make payroll”--then that dip is going to be even worse.'” Xero Shoes xeroshoes.com  About Steven Sashen Steven Sashen is a serial entrepreneur who has never had a job, a former professional stand-up comic and award-winning screenwriter. And a competitive sprinter—one of the fastest men over 55 in the country (maybe the fastest 55+ Jew in the world!). He and his wife, Lena Phoenix, co-founded the footwear company Xero Shoes, creating "a MOVEMENT movement," which has helped hundreds of thousands of people "Live Life Feet First" with happy, healthy, strong feet in addictively comfortable footwear. Steven and Lena also appeared on Shark Tank, where they turned down a $400,000 offer from Kevin O'Leary.   Find Out Your Next Step to Time and Money Freedom Do you want to use Privatized Banking, alternative investments, or cash flow strategies 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 would love to help you.   Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/. By the way, to find out more about how Privatized Banking gives you the most safety, liquidity, and growth  … plus gives you the ability to have your money do two things at the same time, boosting your investment returns.  Go to https://privatizedbankingsecrets.com/freeguide to learn more.

Want to shelter your assets from the prying eyes of the IRS, claims of creditors, or the public? Can creditors take life insurance proceeds after death? In many cases, the answer depends on how your policy is structured. https://youtu.be/yu7D09hTe3M Cash surrender value and life insurance proceeds are exempt from creditors in most states. In this episode, we’re talking about the privacy and creditor protection of life insurance. So, if you want to know how to protect your wealth from future risk of creditors taking life insurance proceeds through litigation, civil suits, bankruptcy, or even divorce … tune in below! Table of contentsWhat You’ll LearnWhere Creditor Protection of Life Insurance Fits In The Bigger PicturePrivacy and Protection LiabilityLiability Insurance and AutoThe Privacy of a Life Insurance PolicyCreditor Protection of Life Insurance Cash ValueFederal LawHow Creditor Protection of Life Insurance Policies Varies by StateWhat States Protect Life Insurance Cash Value from Creditors?When Life Insurance Exemptions Don’t ApplyOther Types of Asset ProtectionFor More Information on Protection From the Claims of CreditorsBook A Strategy CallFAQs About Life Insurance and Creditor ProtectionCan creditors take life insurance proceeds after someone dies?Does life insurance have to be used to pay the deceased’s debts?Is life insurance cash value protected from creditors?Can debt collectors take life insurance money from beneficiaries?Do federal laws protect life insurance policies?Sources What You’ll Learn Whether creditors can take life insurance proceeds after a policyholder’s death How life insurance cash value is protected from creditors in many states Why some protections vary depending on state vs. federal law When life insurance may not be safe from creditor claims or bankruptcy How privacy features in whole life insurance work in your favor Where life insurance fits into a broader asset protection strategy Where Creditor Protection of Life Insurance Fits In The Bigger Picture Life Insurance is just one step in the greater Cash Flow System. But where does it stand when it comes to asset protection? Can creditors take life insurance proceeds after death, or does this financial tool offer legal safeguards? While it’s nestled into Stage 2, Protection, it also improves everything else around it. Infinite Banking helps you keep more of the money you make in Stage 1, amplify your cash-flowing asset strategy in Stage 3, and accelerate your Time and Money Freedom. Privacy and Protection Liability Privacy and protection liability are never something you need until you actually need them. In other words, most of us operate as if “it won’t happen to us,” and when an event occurs, it’s too late to protect against it. This is where life insurance can quietly offer protection from legal claims or judgments that threaten your financial security. For protection from creditors and protection in bankruptcy, it’s not the wealthiest who need protection the most, although they’re the most likely to protect their wealth. The people who should be most interested in asset protection are those who have fewer assets and cannot afford to lose them. Understanding how life insurance protects against creditor claims is essential for anyone looking to keep their assets intact under pressure. Asset protection isn’t the most exciting topic, yet it is something that the wealthy think about. Success leaves clues–follow these clues that the wealthy leave and see how they grow and protect their assets.  Liability Insurance and Auto A Property and Casualty insurance agent once said, “People don’t think about liability until after the fact”. So much so that many people think that their auto insurance covers all liability. It doesn’t.  So, if your dog bites somebody at the park and causes an injury that lands them in the hospital, those hospital bills can come back to you. If the bills are above your liability coverage, a creditor can take this debt and potentially use your assets to cover it.  Small or random incidents like this can happen, and they do happen all the time. Then, because we don’t think we need protection from them, we don’t have it in our times of need. It’s one thing to have an emergency or opportunity fund; it’s another to have a protected asset like a whole life insurance policy to act as this fund that creditors cannot garnish or seize.  That’s the key distinction: liability insurance covers specific risks, while life insurance offers broader, long-term asset protection that can’t be tapped by creditor claims in most states.  The Privacy of a Life Insurance Policy Life insurance is an incredibly private asset, meaning no one can really see past that insurance barrier and know how much wealth you have. This level of life insurance privacy from creditors and outside parties is one of its most underrated benefits. Privacy, especially around finance, is a significant concern in our society. Privacy is a huge advantage of whole life insurance. You don’t need to report your life insurance policy’s earnings to the federal government. It’s so private, in fact, that you need not report it as an asset when applying for federal aid. If your child is applying for college assistance through FAFSA, you don’t need to include your life insurance policies on the form. This can help your student receive better funding. Nor are you required to list it as an asset on loan applications, although sometimes it can help you secure better loans. The non-public nature of life insurance assets gives you the ability to grow and access wealth discreetly, without making your financial position vulnerable to outside scrutiny. Creditor Protection of Life Insurance Cash Value As a living asset, whole life insurance has tremendous benefits in the way of Privatized Banking. It’s a tool for legacy and estate planning, via the life insurance policy proceeds, which provides peace of mind.  It won’t drop in value, it’s accessible to you, and it improves every other area of your financial life. We often focus on these aspects of life insurance, but we haven’t really addressed creditor and bankruptcy protection before. One of the most overlooked advantages is how life insurance cash value is protected from creditors in many states. Life policies offer a private safety net that benefits society as a whole. By contract, the life insurance company is obligated to pay policy proceeds to the beneficiary. Because the proceeds are for the beneficiary's benefit, life insurance offers protection under both federal and state law. This benefit to society is why these exemption laws exist. Like all insurance, life insurance transfers risk away from the policyholder. At the highest level, creditor and asset protection is about keeping your wealth safe from events that could cause loss. These events include: lawsuits divorce bankruptcy or overdue debts When events like these occur, your assets can be garnished or attached to a claim. The protection varies widely; however, having your life insurance cash value protected from creditors can offer a legal buffer that many other financial tools lack. Federal Law The Federal Bankruptcy Code protects the actual insurance element, the life insurance death benefit proceeds, and up to $13,400 of dividend, interest, or loan value in the life insurance policy. The government adjusts this value every three years, though it remains modest. Additionally, the debtor must be the policy's owner. In most cases, federal protection of life insurance proceeds applies only in federal bankruptcy cases. Otherwise, you must comply with the regulations of your state. Some states allow you to choose between federal and state bankruptcy exemptions, so understanding both is important when evaluating your protection level. How Creditor Protection of Life Insurance Policies Varies by State What States Protect Life Insurance Cash Value from Creditors?There are wide variances in the state code regarding life insurance and creditor protection. Some states protect life insurance from creditors, others don’t — and the rules around bankruptcy may differ entirely. In some states, they protect cash value from bankruptcy but not creditors. In other states, it’s protected from creditors but not from bankruptcy. Some states have a limit to their protection, such as the first $10,000, while other states are much more generous. Furthermore, state law often protects both cash value and life insurance death benefits in non-bankruptcy contexts. Otherwise, exemptions are often only extended to the beneficiaries of the debtor. In some states, the exemption only applies to the insured’s family members. When Life Insurance Exemptions Don’t Apply Unfortunately, life insurance isn’t a viable solution for creditor exemptions in every instance. There are situations when life insurance proceeds may not be safe from creditors — especially if intent or timing raises legal concerns. As we said earlier, it doesn’t work well if you’re already in hot water with a creditor. For example, if you paid your premium to defraud a creditor, the protection won’t apply. You’ll find that you won’t have protection if you assign your policy to secure a debt, either. These exceptions are why it's important to use life insurance proactively, not reactively, when planning for asset protection. Other Types of Asset Protection Aside from life insurance, there are other ways of protecting your assets. One simple and affordable way to protect yourself is with umbrella insurance or liability insurance. You can add this to your homeowner’s or renter’s insurance, and it’s very cheap. Most times, you can get up to $1 million in coverage for as little as $200-$300 a year. Accidents happen, and if they happen on your property,

Should you be concerned about asset protection? What types of risk should you know about? What you don’t know about protecting your assets CAN hurt you. In this episode, we’re talking with Douglass Lodmell, one of the nation’s leading asset protection experts and founder of Lodmell & Lodmell about asset protection and how it works. https://youtu.be/d173g5beiU8 So if you want to learn about the keys to asset protection, why insurance isn’t enough, and how to protect real estate, other physical assets, securities, and liquid assets … tune in below! Table of contentsWhere Asset Protection Fits into Your Cashflow Creation SystemHow to Keep Your WealthWhat is Asset Protection?Life Insurance as Asset ProtectionLLCs and Limited Partnerships as Asset ProtectionSetting Up Your LLCMisconception of LLCsThe Next Level of Asset ProtectionAsset Protection TrustFraudulent TransferAbout Douglass LodmellContact Douglass LodmellFind Out Your Next Step to Time and Money Freedom Where Asset Protection Fits into Your Cashflow Creation System Protecting assets with legal planning 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. How to Keep Your Wealth Once you’re wealthy, the trick is to stay wealthy. One of the number one reasons that a person's wealth comes crashing down is a lack of proper asset protection. Unlike other countries, the United States is very litigious. To put it bluntly, people don’t sue the poor, so you have additional risks to mitigate when you build wealth.  Douglass Lodmell, of Lodmell & Lodmell, is one of the nation’s leading asset protection attorneys. His firm handles $4 billion worth of assets. He shares with us the pyramid of asset protection, and why it matters. What is Asset Protection? Asset protection comes in many forms. If you don’t have any assets, that’s asset protection. Similarly, having assets that are exempt from creditors acts as protection. For example, you could have a $15 million home in Texas, and $100 million in debt, and no one could touch your home because of Texas' homestead exemption.  Another protected asset? Retirement funds, because under the ERISA (Employee Retirement Income Security Act), the government decided not to allow people to lose retirement money through lawsuits. Otherwise, the burden would be back on the government. True protection begins with a review of all your assets. Then you can identify what's exempt, and where to strategize. Asset protection strategies take your assets back off the table and away from creditors and lawsuits.  Life Insurance as Asset Protection Life insurance is another asset that typically falls into the exempt category, however this varies from state to state. In some states, your entire policy could be exempt from creditors, while in other states, only a portion is exempt.  When you’re looking to protect your life insurance, first you must look at your state. If you have 100% exemption, you don’t need to do anything else. If it’s not, then you look for other ways to protect it, either through holding companies or directly into asset protection stocks. LLCs and Limited Partnerships as Asset Protection Limited partnerships and LLCs have charging order protection. They protect assets because creditors cannot foreclose on a limited partnership and get the underlying asset. All they can get is a charge, which you can think of as a lien against the debtors interest in that limited partnership. This is the foundation of an asset protection strategy. Setting Up Your LLC When setting up your LLC, you must consider jurisdiction. If you do not establish your LLC in the jurisdiction where you’re investing in, it has no value. For example, you wouldn’t invest in California real estate, and then set up your LLC in Wyoming because you like the statute better. Otherwise, if you get into trouble in California, California law applies to your case. You’ll just end up paying more fees. LLC is great for most assets, especially real estate, which reduces your liability as a landlord and protects the value of a property. Your inside liability is protected to a certain amount through an LLC, which is why you must appropriately spread your properties under different LLCs. The distribution depends on your risk tolerance. LLCs also protect from outside liability, or events that don’t occur directly inside the property.  Other assets you can put under an LLC? Rare and expensive cars, boats, planes, and other similar assets.  Misconception of LLCs A common misconception is that you must have an LLC for every property you own. However, this only really applies to inside liability. If you own an LLC on every property, you’ve just created more paperwork and more fees for yourself.  Instead, consider separating properties under LLCs based on equity value rather than property number. That way, instead of 12 LLCs for 12 properties, you’re more likely to have one or two LLCs.  Of course, it's important to refer to your jurisdiction when making such decisions. The Next Level of Asset Protection LLCs are like the base layer on the pyramid of asset protection. The next layer is a holding company that contains all of your LLCs. While the base-layer may comprise single-member LLCs, you’ll want to have a multi-member LLC at the holding company level. This is also where you do get to choose your jurisdiction for your holding company.  Good jurisdictions include: Nevada, Wyoming, Delaware, Arizona, and Alaska. These states are much better at protecting assets. Asset Protection Trust After the holding company, you have the third and final layer: the asset protection trust. Sometimes, the holding company may be enough to cover all of your assets. $600,000 or less in assets means you can probably stop at the holding company layer, with significant umbrella insurance. Once you go upwards of $1 million, those entities may not be enough. That’s because your assets may block a creditor from foreclosing on the asset, but they won’t eliminate the creditor. They can still get a lien or charge against the holding company.  To eliminate the creditor, you’ll need the asset protection trust. This trust, set up with special provisions, blocks creditors from reaching assets within the trust. It’s also called a self-settled trust, which means you’re creating the trust for yourself, and you’re the beneficiary. In order to keep these assets safe from creditors, you must also make the trust irrevocable. That way, you cannot reverse the trust and put all assets back under your name and within your creditors' reach. Otherwise, a judge could compel you to reverse your trust. Fraudulent Transfer Fraudulent transfer doesn’t refer to a physical move. It refers to legally transferred titles. If you sign your house over to your brother right after losing money in Vegas, that’s a transfer. However, because it’s done with the intent to delay, hinder, or defraud a creditor, it can be reversed.  In some cases, it doesn’t even matter if the event has occurred or not. If there’s mold on a property, and you fear you’ll be sued and make title transfers to protect yourself, the courts can interpret that as a hindrance.  The trick to asset protection is that you have to do it before anything happens, otherwise it can be fraudulent. You must protect assets before you have a creditor, so that in the future no one can say you’re dodging a specific event. Douglass’ philosophy is that as soon as you need your first LLC, you should build your asset protection structure. Be cautious of a do-it-yourself protection plan. It’s an extremely complicated structure, and it’s too easy to make your assets work against you. Even calling and getting an analysis can leave you better off.  About Douglass Lodmell Douglass Lodmell is Managing Partner of Lodmell & Lodmell, P.C., one of the nation’s leading Asset Protection Law Firms. Originally from Geneva, Switzerland, Douglass stood out at an early age as one of the brightest minds of his generation. His capacity to make the complex simple allowed him to excel during law school, receiving the Jacob Burns Medal, an award given to the single student with the highest GPA. He completed his Legal Masters (LL.M.) in taxation at the nation’s leading tax program, New York University School of Law.  Today, Douglass’ law firm protects over $4 Billion in client assets. Douglass spends much of his time teaching, speaking, and leading thousands of business owners, corporate executives, investors and other professionals who have often worked most of their lives to accumulate wealth of various types, including real estate and securities. Douglass is also author of the book The Lawsuit Lottery: The Hijacking of Justice in America.  Contact Douglass Lodmell Lodmell & Lodmell 800-231-7112 doug@lodmell.com Find Out Your Next Step to Time and Money Freedom We offer two powerful ways to help you create lasting impact:

Are you considering whole life insurance and want to know which is better: Direct vs. non-direct recognition life insurance companies? What does it mean? Why does it matter? How does it impact your policy's average rate of return? And should it be a part of your decision-making process? https://www.youtube.com/watch?v=y1UZ_EYIns0 In this episode, we discuss the why, how, and what of direct recognition vs. non-direct recognition so you have the knowledge you need to decide. So if you want to know how a life insurance company's treatment of dividends when you have a policy loan affects your policy's cash value growth over time and your future ability to borrow against your policy for Infinite Banking, this episode is for you. We'll help you find out whether it matters and, most importantly, tune out the biased opinions of some who say you should ALWAYS have it one way, and NEVER the other. You’ll really understand it, so you can get the best dividend-paying whole life policy, tune in below! Table of contentsWhat You'll Learn Where Whole Life Insurance Policies Fit Into the Bigger PictureWhat Does Direct or Non-Direct Recognition Mean?How Direct Recognition WorksHow Non-Direct Recognition WorksWhy the Comparison Isn't Always ClearDirect vs. Non-Direct Recognition CompaniesHow Policy Loans Affect DividendsFixed vs. Variable Loan RatesShould You Choose Direct or Non-Direct Recognition?Check Company Ratings & Customer ServiceChoosing the Best Life Insurance CompanyReady to Start Your Life Insurance?Frequently Asked QuestionsHow do I find out if a company uses direct or non-direct recognition?Will one recognition type always outperform the other?Besides recognition method, what loan terms should I compare?Can I change my mind about the recognition method after I buy a policy? What You'll Learn  Here's what we'll cover: Direct vs non direct recognition explained - What these terms actually mean and why you should care How to identify recognition method before policy purchase - The right questions to ask your agent What does direct recognition mean for policy loans? How does it really affect your dividends when you borrow Direct recognition life insurance companies - How to size up different insurers and their approaches Choosing between direct or non direct recognition - Which one makes sense for how you'll actually use your policy Where Whole Life Insurance Policies Fit Into the Bigger Picture When you're building a solid financial foundation, the details matter. That's why dividend strategy matters in life insurance, especially when you understand how recognition methods affect your long-term results. 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. What Does Direct or Non-Direct Recognition Mean? When you’re shopping for a life insurance policy, you’re likely going to hear an insurance agent use the terms direct and non-direct recognition thrown around often. The terms have roots in the relationship between dividends and policy loans. Whole life insurance dividends are the non-guaranteed part of the life insurance contract, though historically, companies have an excellent track record of paying dividends. Each year, companies will declare their dividend rates.  How Direct Recognition Works Companies handle dividends differently depending on whether you have an outstanding policy loan. Direct recognition companies directly acknowledge outstanding policy loans and will pay dividends accordingly. This often means that they have a different, unpublished rate for any money that is being borrowed against.  How Non-Direct Recognition Works On the other hand, non-direct recognition companies pay dividends at the same rate, regardless of any policy loans. The trade-off is that Non-Direct Recognition companies only have one dividend rate, which often seems lower than direct recognition dividends.  Why the Comparison Isn't Always Clear However, companies all declare dividends differently, so it’s not an apples-to-apples comparison. It’s tempting to see a higher dividend and jump on it, but these rates are projections. Factors such as the age of your policy and your paid-up additions can affect whether you get more or less than the projection. Whether or not you will use your policy as a family bank will also change which option you go with. Direct vs. Non-Direct Recognition Companies With non-direct recognition vs. direct recognition insurance companies, there are strong opinions on either side of the argument. We truly believe that there is a middle ground, and caution you against anyone who explicitly states that one or the other is ALWAYS or NEVER better. This simply isn’t the case. If one of these things was truly better by a significant margin, they would not both exist today. And yet both models are going strong. In truth, there are no deals in the life insurance industry — it’s all a balancing act. If a company projects a dividend, there’s always a trade-off to balance it out. A whole life insurance contract should be mutually beneficial. You benefit from having lifetime coverage, a compounding cash value, and other guarantees. However, the company can only offer these guarantees because of premiums, dividend structures, and other balances. You should want them to be successful and stable, too, because it directly benefits you. Would you want a company that can’t hold up their end of the contract? How Policy Loans Affect Dividends The ability to be your own banker by taking loans against your cash value is the cornerstone of Infinite Banking strategies created by Nelson Nash. The value is that you never reset your compounding interest because you’re not making a withdrawal. So your money can grow uninterrupted, while you can still use it.  With policy loans, the direct versus non-direct argument comes into play. Direct recognition means that although you have cash value accumulation, any collateralized portion will have lower dividends paid. Non-direct recognition means that the cash values are not impacted by policy loans.  Say “Insurance Company A” declares a 5.5% dividend, and “Insurance Company B” declares 4.5%. It is tempting to think that Company A has a better deal. However, that company could be a direct recognition company, and that loan interest rate may not accurately reflect your rate if you plan on borrowing against your policy. To understand this, we have to step into the shoes of the company. They want to get the highest rate while remaining conservative, so they have longevity. So it makes sense that to project higher dividends, they balance it somewhere.  Fixed vs. Variable Loan Rates When you're evaluating whole life policy loans, you'll find that recognition type often correlates with the loan rate options companies offer. Some give you flexibility, others prioritize predictability. The rate at which you’re loaned money correlates to the dividend rates. Some companies will offer both fixed and variable loan interest rates, which you can decide at the time of your loan. Often, a fixed rate is higher than a variable rate, yet offers certainty that your rate is locked in. A variable rate tends to be lower, yet gets adjusted each year based on costs.  It’s important to note that the dividend rate will usually stay higher than the loan rate. The dividend and the loan are both interest-rate environment-driven components, and one won’t change independently of the other. This means that even though your loan rate could change from year to year, it will almost always be lower than the dividend rate, stabilizing your policy. Should You Choose Direct or Non-Direct Recognition? When you look at direct vs. non-direct recognition, neither is significantly better than the other.  Direct recognition companies may offer slightly higher dividends. However, they compensate with a lower rate by offering a direct recognition loan.  Non-direct recognition companies often have lower projected dividends, but all of your money, collateralized or not, will earn the same rate.  It’s also important to note that companies won’t advertise whether their dividend projections are gross or net. In the grand scheme of things, the performance of your policy will be more or less the same no matter what you choose. Companies don’t guarantee dividends, and the projections don’t fully represent how your account will grow. So, though a non-direct recognition company may make more sense from a privatized banking strategy, research shows accounts will average about the same, regardless. Check Company Ratings & Customer Service There are no deals in the life insurance industry; everything is a trade-off, and everything balances out. When looking for the best company, we recommend looking instead at financial ratings and their dividend history. Current dividend rates and future projections won’t tell you much—they’re not guaranteed.  However, you can learn a lot from what has happened and how companies manage their finances and dividends accordingly.  Check the company ratings through Standard and Poor's, Moody's, and other rating companies. Research the overhead costs of each company, which can tell you a lot about a company. Look at customer service, as you’ll be working with this company for life.

Do you want to use whole life insurance to store cash, build an emergency/opportunity fund, and create a legacy, but you wish you’d learned about this concept when you were younger? Do you feel like you’re too old for the Infinite Banking Concept (IBC)? https://www.youtube.com/watch?v=ZX91AY2tYlo Fortunately, it might not be too late for you to get started. In this episode, we’re going talk about how life insurance works when you start a policy later in life, and how you can make the most of it. So if you want to see if Privatized Banking can still work to build cash value and accelerate time and money freedom, even if you’re starting a policy as a senior, tune in below! Table of contentsWhere The Infinite Banking Concept Fits In The Bigger PictureHow Old is Too Old for Infinite Banking?The Impact of Privatized Banking Later in LifeHow Can You Use Privatized Banking Now?Transfer of IRAFamily BankingPrivatized Banking As IncomeSocial Security and Pension MaximizationVolatility BufferPermission to SpendAccelerated Death Benefit RiderNot Too Old for Infinite BankingBook A Strategy Call Where The Infinite Banking Concept Fits In The Bigger Picture The Infinite Banking Concept is just one step in the greater Cash Flow System. While it’s nestled into Stage 2, Protection, it also improves everything else around it.  Infinite Banking helps you keep more of the money you make in Stage 1, amplify your cash-flowing asset strategy in Stage 3, and accelerate your Time and Money Freedom. How Old is Too Old for Infinite Banking? Many people assume that because Privatized Banking takes time, that after a certain age it’s no longer a viable strategy for them. In reality, there’s more time than you’d think. Your results, after a certain age, will depend more on what you’re hoping to accomplish than anything. Most people look at life insurance and think of term insurance, the simplest insurance, and have preconceived notions. It’s insurance that is pure cost. And based on experiences with term insurance, people are hesitant to pursue insurance strategies later in life. However, whole life insurance can work for you even if you start in your senior years. Whether you’re hoping to bridge income, leave a legacy, or round out your estate plan—it’s likely not too late. You can be in your 70s and start your first policy. In reality, most insurance companies will take policies until age 80. So clearly, they believe that it’s valuable enough for someone in their 70s. Ultimately, this is possible because of the careful actuarial planning of life insurance companies, which allows them to insure people up to that point. The Impact of Privatized Banking Later in Life One of the biggest concerns we hear is that the cash value won’t be as large. While it’s true that your break-even point may be later, the trajectory will be more or less the same. The opportunity cost lost in your cash value may only be a few hundred dollars. The amount of cash value is proportionate to the way the policy is designed, and the premiums paid because of that design. The most significant loss is the face value of your death benefit. What would be a $2 million death benefit for a 30-year old is going to be about $1 million for a 50-year-old. For a 70-year-old, it may be closer to $500,000. However, that half a million will have a better impact on your legacy planning than nothing. The reason the death benefit will decrease the older you are when you start a policy is that the cost of insuring you goes up. Insurance companies know that they’ll have to pay a claim on everyone they provide whole life insurance to; however, they use very careful mortality calculations to do so. The likelihood they’ll pay a claim on a 30-year-old is minuscule. So the costs of insurance are more likely to be covered. Someone in their 70s is likelier to have a claim paid sooner, which means the company has a smaller window to cover the costs of insurance. So the same premium will buy less death benefit. How Can You Use Privatized Banking Now? Although whole life insurance itself may be available to you, Privatized banking strategies do take time. Does that mean if you’re in your 60s or 70s that it’s no longer available to you? Fortunately, you're probably not too old for Infinite Banking. We have several real-world examples of people who have started policies in their 70s and have used them to implement wealth strategies. Here are some ideas of what you can do with your insurance. Transfer of IRA With a new policy, one woman in her 70s decided to transfer her IRA into a whole life policy. She wanted to leave a legacy for her children and saw the advantages of paying taxes today, to transfer a tax-free inheritance. Additionally, she has no interest in real estate or starting a business, but she does take an annual trip to South America. Usually, she pays for this trip by saving a few hundred dollars a month. So instead, she’s decided to borrow against the policy, and use the money she saves to pay down the loan. She believed at one time that she may be too old for Infinite Banking strategies, yet she's found practical ways to implement these strategies. Family Banking Another person used their cash value to buy a rental property for their children to live in. They charged reasonable rent so their children could have housing, while they worked on their credit scores and saved money. They then took the cash flow from the property to pay the policy loan back. Another way to use the family banking strategy is to take the cash value, loan to your children to buy cars, and have the children pay you back. If you don’t think your children will pay you back, consider this. Your children are likely your beneficiaries. So they’ll get the same amount whether they pay you back or not. The death benefit will be reduced by any outstanding loans when paid out. By repaying the life insurance loans now, your children increase their payout at a later date. Keep in mind that you can also set up the repayments to be processed straight from their bank accounts. Privatized Banking As Income Another key component of Privatized Banking is the ability to supplement your retirement income. Not only can it be an additional stream to pull from, but it also makes all of your assets perform better. Here are a few examples. Social Security and Pension Maximization Social security is taxed at a maximum of 85%--which means that only 85% of your social security income is subject to taxes. If your other income is below $44k, you can lower the portion of your social security income that is taxed. And if you can reduce your income below $32,000 you won’t have to pay any taxes on social security income. And many people will say, but how do I live on that? That’s where Roth IRA and whole life insurance dividends come in. The use of these assets will allow you to pull interest and dividends, or even take policy loans to supplement your income. And the reason you don’t pay taxes is that you already paid the taxes on that money before your contributions or premiums. So you can slash taxes paid on your Social Security and stay in a lower tax bracket, all while drawing a significant income. It’s in the tax code, making it a legal tax strategy. You can also use whole life insurance for pension maximization. Volatility Buffer Whole life insurance can also act as a buffer against any market volatility. With this strategy, you can increase the longevity of your investments by years if you’re drawing income from an investment portfolio. The idea originated with Wade Pfau. The strategy is to draw your income from your life insurance when the market is down. It’s hard to recover from a down year when you have to take money out of your investments, and it can quickly bleed you dry. The ability to instead draw income from another account allows it to bounce back. Permission to Spend Another reason whole life insurance can be beneficial to you in retirement is the “permission to spend” idea. That is, if you want to leave a legacy and still want to use your other assets, whole life insurance acts as a permission slip. The knowledge that you’ll have a death benefit to leave to your heirs can give you the peace of mind to use your existing assets—reverse mortgages, SPIAs, and other income-producing strategies won’t leave your heirs without. Accelerated Death Benefit Rider Towards the end of your life, you can use the accelerated death benefit to pay for unknown expenses. This is a good last resort, and safety net, that can give you tremendous peace of mind. If you have the accelerated death benefit rider, the insurance company will give you access to your death benefit if diagnosed with a terminal illness. This benefit can be used for medical expenses and, in reality, anything you wish. However, life insurance is an asset that you’ll want to keep for as long as possible, so we don’t recommend using whole life insurance as your primary income. You can best utilize your policy as a support asset, one that provides you with peace of mind. Not Too Old for Infinite Banking If you’re in your senior years and you think you’ve missed the opportunity to start your privatized bank, you're probably not too old for Infinite Banking. You have more time than you think. This asset provides you with liquidity, certainty, and the promise that you won’t outlive your money. If you’re wondering how whole life insurance fits into your personal economy, we’d love to help. We exist to help you do the most with your money, so you can build time and money freedom. 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!

Are you concerned about ballooning healthcare costs? You should be! It’s an expense that’s risen far faster than inflation, and paying more than you need to is a money leak that prevents you from making the forward traction towards your financial goals that you deserve. https://www.youtube.com/watch?v=x9J6MGxNFMU In this episode, we’re talking with Dave Chase about how community-owned health plans are revolutionizing a stagnant industry that’s failed to develop. So, if you want to learn how to save 20—40% in healthcare costs while improving access to high quality, trustworthy, local, affordable care, with a solution-oriented look at transforming the industry, and your life with it… tune in below! Table of contentsWhere Profit Maximization Fits into the Cash Flow SystemYou’re in the Healthcare BusinessAre Healthcare Costs Legitimate?Health Insurance vs. Healthcare CostsDirect Contracting HealthcarePreventative HealthcareAbout Dave Chase  Where Profit Maximization Fits into the Cash Flow System Minimizing your health care costs, so more of the money you make is yours to keep, is just one part of a bigger journey to building time and money freedom.  No matter how big your business grows and how much money you make, if it’s all leaking out between your fingers, you’ll never be free of just working harder and harder to make more money.  That’s why we have created the 3-step Business Owner’s Cash Flow System, 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, legal protection, and Privatized Banking.  Finally, you’ll put your money to work, increasing your income with cash-flowing assets. Minimizing health care costs happens right here in The Money Finder step of your financial foundation. When you find, recover, and keep more of the money you’re making, you put more gas into your cash flow machine. And that accelerates your time and money freedom. You’re in the Healthcare Business ...regardless of whether you like it or not. If you’re a business owner, healthcare should be a part of your business model. It’s the last area to modernize inside businesses. However, the health of your employees directly affects their work, so it’s an essential element of running a business.  The rising healthcare costs, thanks to health insurance, leave individuals and businesses alike feeling downtrodden. However, insurance is not the only solution for health and wellbeing. The common misperception is that solving healthcare seems as difficult as solving Middle East peace. That is only true if you believe and work with those desperately focused on preserving the status quo. The distinction lies between care and insurance. Are Healthcare Costs Legitimate? Health care isn’t expensive. What's expensive are price-gouging hospitals, profiteering PBMs, bloated carriers, inappropriate treatment, and outright fraud. Only $0.08 of every $1 ostensibly spent on healthcare goes to physicians ($0.27 for all).  As a result, medical practices are shutting down, while mega-carriers are making record-breaking profits.  The solution is to rethink care. How can employers provide care in a way that is cost effective for everyone? In the era of high deductible health plans, there are large and fast-growing markets in the direct contracting (employer to provider) and cash pay markets. Because the underlying costs of care haven't changed (i.e., clinician pay and medical supplies), there is no good reason for hyper-inflating prices.  Organizations like Pacific Steel put this insight into action. Four years ago, they were spending over $8 million on health benefits (for 750 employees). Last year, they closed out at under $3.5M while benefits improved. All because they reimagined health care. Health Insurance vs. Healthcare Costs So what’s the difference between health insurance and healthcare?  Healthcare centers on predictable items you can budget. These are the things we know most people will require or experience in a lifetime. They’ll have a particular amount of checkups, surgeries, and ailments.  When we think of healthcare in this way, health insurance becomes coverage for the unpredictable. Rare cancers, diseases, or surgeries that aren’t as likely to occur.  As an employer, this insight can help you provide better benefits for more people while reducing spending. Having "in-house" care allows employees to focus on regular and preventative care, keeping themselves healthy. Additionally, it keeps healthcare costs low. This is how Pacific Steel reduced their largest cost and provided better benefits.  Direct Contracting Healthcare Healthcare costs have inflated faster than nearly any industry, while costs have remained level. Had this spending tracked regular inflation, the average baby boomer could have a $1 million nest egg. Instead, they've unknowingly funneled that money into Wall Street, in what is one of the biggest wealth transfer in history.  Instead, more than half the workforce is functionally uninsured, because they can’t afford their deductibles. And typical solutions from the healthcare industry have been little more than cost-shifting or distracting. The stress that this creates for workers can negatively affect their health and work performance, trapping them in a vicious cycle. Direct contracting seems to be one of the most viable solutions to this rising cost. Thousands of medical practices are already cutting out the middleman this way. By creating a direct contract with local employers, not only do the medical practices keep more of the cost for themselves, it’s cheaper for employers to offer benefits.  Preventative Healthcare With direct contracting, you’re creating a win-win scenario for everyone involved. Thus, medical practices can stay open and thrive, employers can reduce costs by cutting out the middleman, and employees can get more bang for their buck.  Regular check-ups, surgery alternatives (like physical therapy), and mental health care are among the benefits of direct contracting. Practices like these can also improve day-to-day health and reduce the likelihood of more serious conditions. In addition, direct primary care meets the most common needs of the average person. Companies can then insure more costly occurrences themselves.   The overarching theme is wise leaders have said "enough" and are working with the right folks to apply the insights above. They are typically spending 20-40% less per capita than the status quo with superior health benefits. About Dave Chase  Chase leads the vision for Health Rosetta, which is to empower community-owned health plans. Health Rosetta’s blueprint and platform powers the health plans of your dreams: high quality, trustworthy, local, affordable care — that you thought had disappeared forever — from caregivers we know & trust. They free up compassionate, well-trained, community-based caregivers to rediscover love in medicine so they can fulfill their calling: serving patients not just in disease, but toward their fullest health. A trusted & sacred caregiver-patient bond grows through transparency & openness that equips and empowers patients wherever they can best achieve their unique health goals — at home or any setting best optimizing their well-being. By avoiding the 50% wasted healthcare costs, we can ensure our caregivers have the independence & resources to address the psychosocial and medical issues their patients face. Human-centered health plans restore health, hope & well-being. Through best-selling books & The Resident (on FOX), Chase highlights the tremendous successes & opportunities with Health Rosetta-type health plans. The books, TED talk, and TV/film are reaching over 10 million people to inform, enrage, empower and activate a broad grassroots movement designed to restore hope, health & well-being to our communities. Chase received the Health Value Awards' Lifetime Achievement for Health Benefits Innovation at the 2020 World Health Care Congress. Chase co-founded Avado, which WebMD/Medscape acquired and integrated into their system. He also founded Microsoft's $2B, 28,000 partner healthcare ecosystem. Outside of work, Chase is an oxygen-fueled mountain athlete and volunteer high school track & cross country coach. Once upon a time, Chase was a PAC-12 800 Meter & 4x400 competitor. Devotion to faith, family, and friends underpin a desire to be a servant leader to the 4 million lives (& growing) stewarded through the Health Rosetta community. Find Out More About Health Rosetta Learn more at Health Rosetta. Get a copy of Dave Chase's book, Relocalizing Health: The Future of Health Care is Local, Open, and Independent. You can find and follow Dave with the handle @chasedave on all social media outlets. And if you're ready to think differently about your healthcare, you can find a benefits consultant to begin implementing these ideas in your business. Find Out Your Next Step to Time and Money Freedom Do you want to use Privatized Banking, alternative investments, or cash flow strategies 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 would love to help you.   Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/. By the way, to find out more about how Privatized Banking gives you the most safety, liquidity, and growth  … plus gives you the ability to have your money do 2 things at the same time, boosting your investment returns.  Go to https://privatizedbankingsecrets.com/freeguide to learn more. Thanks for Tuning In!

I heard whole life pays dividends — but what does that really mean? This question comes up constantly when we talk with business owners and high-earning professionals about Privatized Banking. And honestly, I get it. The world of whole life insurance dividends can feel a little murky. Confusing.  https://youtu.be/AwW0cKHR-sA So we brought in someone who knows this stuff inside and out: Perry Miller, former Regional VP of Lafayette Life Insurance Company. Perry spent decades in the trenches, helping advisors and families navigate the complexities of whole life insurance. So if you want to see how dividends work, understand how they will impact your policy in the future, and make the best decision when starting your Privatized Banking policy now, so you'll get the most use out of your money later, tune in below! Quick Highlights In this article, you'll discover: What whole life dividends actually are (and why they're completely different from stock dividends) The 4 biggest myths about dividend rates  Why comparing dividend rates between companies is almost meaningless How to use dividends strategically to build generational wealth The track record of mutual companies paying dividends for 150+ years through every economic crisis What's guaranteed vs. what's not in your whole life policy Where Whole Life Insurance Fits Into the Bigger Picture 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, legal protection, and privatized banking.  Finally, you put your money to work, increasing your income with cash-flowing assets. Table of contentsWhere Whole Life Insurance Fits Into the Bigger PictureWhat Are Whole Life Dividends?The Guarantees of Whole Life InsuranceHow Dividends Are CalculatedDividend Payment Options ExplainedPaid-Up AdditionsTaking CashPremium OffsetAccumulate at InterestWhy Dividends Actually MatterYour Money Compounds FasterYour Family Gets Better ProtectionYou Get More Financial Scope4 Myths of the Whole Life Insurance Dividend1. The highest declared dividend means you’ll get more growth in the long term.2. Dividend rates mean the same thing from one company to another.3. Today’s dividend rate on the illustration means guaranteed dividend rates in future years.4. Everyone gets the declared dividend.Direct Recognition vs. Non-DirectHistorical Reliability and Future OutlookLooking Deeper than Whole Life Insurance DividendsWho is Perry Miller? What Are Whole Life Dividends? There is some confusion in the marketplace equating whole life insurance dividends with stock dividends; however, they’re not the same.  So, does whole life insurance pay dividends? Yes. But here's what they actually are: returns of excess premium from mutual insurance companies to their policyholders. These dividends are a calculation of a few factors, including expense and interest rate forecasts, portfolio performance, and mortality rates. If they do better than expected on any of those fronts, they share some of that "extra" with you. That's your dividend. In short, stock dividends come from profits from investments. Dividend insurance comes from the insurance company's operational performance. The Guarantees of Whole Life Insurance Your whole life policy guarantees three things, period: Your premium (it won't go up) Your death benefit (it won't go down) Your cash value growth (it will happen) Everything else? Including dividends? NOT guaranteed. Dividends are the icing on the cake. By charter and by law, insurance companies must pay contractual guarantees. If rates, mortality, and expenses change or fluctuate, that can affect the company’s ability to pay those guarantees. So the dividend is like the safety valve. If something doesn’t work out as expected, companies will lower dividends to compensate. On the flip side, if those factors do better than projected, you get to participate in higher rates as well. Most companies can boast that they pay dividends regularly, yet do they meet the projections? Not always. However, that flexibility allows them to meet their guarantees. This mechanism allows the companies to give policy owners the certainty of the death benefit and other guaranteed provisions. So not only are the dividends a bonus, they act as an assurance that the company will meet their contractual obligations. How Dividends Are Calculated Companies look at three main buckets: Company profits and how their investments performed. If they projected 4% returns and actually earned 5%, that extra 1% factors into dividends. Interest earnings on their portfolio. Insurance companies invest VERY conservatively - think bonds, real estate, blue-chip stocks. When these perform well, you benefit. Operating expenses and mortality experience. If fewer people died than expected, or if they ran their business more efficiently than projected, some of that savings flows to dividends. Right now, current gross dividends run somewhere between 4% and 6%. But we’ll show you later why that may not be what it seems.  Dividend Payment Options Explained When your policy earns dividends, you've got four choices for what to do with them. Paid-Up Additions This is where the magic happens, and honestly, it's what most wealth-building families should choose. When you take dividends as paid-up additions (PUAs), you're buying more life insurance with that dividend money. More insurance means more cash value. AND if you want to know which dividend option will increase the death benefit? You’ve got it, PUAs. You see, those PUAs earn dividends too. So next year, you're earning dividends on your original policy PLUS dividends on all the PUAs you've accumulated. It's like a snowball rolling downhill, getting bigger and faster every year. Taking Cash You can take dividends as cash, and sometimes that makes sense if you have cash flow needs that have to be met. Otherwise, it’s an immediate gratification trap. But every dollar you take as cash is a dollar that's NOT compounding for the next 20, 30, 40 years. It's the difference between instant gratification and long-term cash value growth that changes your family's financial trajectory. Premium Offset Some people use dividends to reduce their premium payments. This can provide cash flow relief, especially in tight years. But again, you're trading long-term compound growth for short-term cash flow improvement. Sometimes that trade makes sense. Usually, it doesn't. Accumulate at Interest Your dividends can stay with the company, earning interest. This is safer than taking cash and more flexible than PUAs, but it typically generates lower long-term returns. This might work if you're planning to use those accumulated dividends for something specific down the road. Why Dividends Actually Matter Here's where we get to the heart of why this matters. Let’s start by answering the following question: What is the difference between cash value and dividends? Your cash value is the guaranteed foundation - the money that will be there no matter what. Dividends are the accelerator that can turn a solid policy into a generational wealth-building machine. When you understand how to use dividends strategically, three things happen: Your Money Compounds Faster Every dividend reinvested as PUAs creates more insurance, which creates more cash value, which generates more dividends. It's geometric growth, not arithmetic. Your Family Gets Better Protection More death benefit means more financial security for your spouse and children. But it's also a more tax-free wealth transfer when you're gone. You Get More Financial Scope A policy with strong dividend growth gives you more borrowing capacity for investments, business opportunities, and more. Your policy becomes the engine that funds other wealth-building activities. 4 Myths of the Whole Life Insurance Dividend 1. The highest declared dividend means you’ll get more growth in the long term. When comparing policy illustrations, the numbers can be complex. And on occasion, policies will be nearly identical, and the only major difference appears to be the dividends. On the surface, you’d think that makes the decision simple.  However, dividends are not guaranteed, and as noted above, are not always paid as projected. Just because company A has higher projections than company B now does not mean that will always be the case. Dividends will fluctuate, so you cannot rely on current projections to accurately determine future growth. Rates you see this year can change in the next. Over time, these projections will likely even out between the companies. When comparing policies, look at the details of the contract, policy and company history. 2. Dividend rates mean the same thing from one company to another. When companies declare dividends, they show either a Gross rate or Net rate. And the companies won’t specify which one they’re showing. This is yet another reason it isn’t ideal to compare company dividends. The Gross rate is the company’s higher rate, which is calculated before considering any expenses. The Net rate is the projection after companies have calculated average mortality and expenses. Some companies believe that the Gross rate is more honest, while some believe that the Net rate is. Both arguments have some validity. The key takeaway is that dividends between companies won’t always be a valid comparison. 3.

Do you want the freedom to sell real estate at the top of the market and wait to invest until the right time, without having to rush cash into a new property with a 1031, but still be able to defer taxes? A deferred sales trust may be for you - this capital gains tax deferral strategy offers investors unprecedented flexibility. https://www.youtube.com/watch?v=SvbmzY7Xqw4 In this episode, we’re talking with Brett Swarts about why investors need to know about the Deferred Sales Trust. If you want out of the box solutions to capital gains, a rescue from a failed 1031, or to find out how to save capital gains taxes over the deferral limits, so you can maximize your real estate investing progress and momentum, in your own timing and on your own terms … tune in below! What You'll Learn About Deferred Sales Trusts: Why capital gains taxes can devastate your profits - and the legal strategies the IRS encourages to minimize them How deferred sales trust benefits outperform 1031 exchanges - no time limits, no like-kind restrictions, complete investment flexibility The exact step-by-step process of how a deferred sales trust works to defer your capital gains taxes When to set up a DST - including the three critical windows that can save a failing 1031 exchange Expert insights from Brett Swarts - CEO of Capital Gains Tax Solutions and leading DST specialist What is Capital Gains Tax? Capital gains tax can seriously reduce profits from your investments when you sell them. And there are any number of reasons you might be selling an investment. On investment real estate, you pay capital gains taxes on appreciation over your cost basis and the recaptured depreciation of the asset sold. However, the tax rate for capital gains is why strategies exist to defer and diminish their effect. These are legal tax incentives that the IRS actually encourages entrepreneurs and investors to use, to continue to stimulate the economy. If you can overcome a big payment now, you set yourself up to take advantage of bigger and better opportunities. 1031 Exchange Limitations You’ve likely heard of the 1031 Exchange, which allows you to defer capital gains tax. However, the 1031 has limits. You have 45 days to identify the new property, and 180 days to close. And, it requires an equal trade—a like-kind asset of equal or greater value. When it makes sense, it’s a great provision, but results depend on the market. Then, there’s the deferred sales trust—which allows you to play the long game. What is a Deferred Sales Trust? So what is a deferred sales trust exactly? It's a powerful alternative to traditional 1031 exchanges that gives investors complete control over their timing and investment choices. The Problem with Traditional 1031 Exchanges When investors sell their properties, a 1031 Exchange is a popular choice and allows them to transfer ownership without realizing capital gains. However, in a market like 2008, it isn’t nearly as effective. Investors who had taken on too much debt and overpaid for their properties were finding themselves selling high and then buying high. If a 1031 exchange doesn’t seem right for you, or you're unable to complete your exchange, you won’t want to sit on your cash. Otherwise, you’ll be paying up to 20% in federal capital gains taxes, plus there could be additional state and Medicare taxes, depending on which state you live in. On top of that, you'll owe depreciation recapture taxes at ordinary income tax rates. The DST Solution With a DST, you work with an outside trustee to sell the property within the trust. Rather than receiving a big payout upon closing, the money goes into a trust. From there, you’re only taxed as the money is distributed. The funds from the sale allow you to diversify your investments, giving you the chance to wait for the right deal. There’s no pressure to purchase another property. Where a 1031 is quick, a deferred sales trust allows patience. By setting up a trust, a trustee can re-invest the money from your sale in a diversified portfolio, use up to 80% of the funds to purchase new properties (without it needing to be of equal or greater value), and provides liquidity. Deferred sales trusts put time on your side. 1031 Exchange vs. Deferred Sales Trust Feature1031 Exchange Deferred Sales Trust Primary PurposeDefer capital gains taxes when selling investment or business property by reinvesting into “like-kind” property. Defer capital gains taxes by selling to a trust and receiving payments over time. Time Limits45 days to identify, 180 days to close No time restrictions Eligible AssetsReal estate only Diversified portfolio options Control of ProceedsA qualified intermediary must hold proceeds until reinvestment. Proceeds are held by the DST trustee and invested per the trust agreement. Tax TreatmentDeferred until sale Taxed only on distributions Best ForInvestors who want to stay in real estate and follow strict timelines. Sellers who want diversification, liquidity, or exit from active management without immediate reinvestment. How Does a Deferred Sales Trust Work? A deferred sales trust can seem overwhelming with all the moving parts. Fortunately, you don’t have to do it alone. The IRS requires that you have a 3rd party “trustee” to oversee the management. This means you can partner with professionals, such as Brett Swarts, to find a buyer, make the sale, and set up investments. The Deferred Sales Trust  Process: Step by Step Here's how a deferred sales trust works in practice: Seller transfers asset into trust - You work with a qualified trustee to establish the trust before the sale Trust sells to the buyer - The trustee handles the sale transaction on behalf of the trust Proceeds remain in trust - Instead of receiving a lump sum, the sale proceeds stay in the trust Seller receives installment payments - You receive distributions over time according to your preferred schedule Income is taxed as distributed - You only pay taxes on the amounts you actually receive, not the full sale amount Investment Flexibility And if you find a real estate deal that you’re interested in, you can partner with your trust as an LLC to take the deal. You can do so immediately, or ten years down the road—you have the freedom to make the call. And you have more investment options with a deferred sales trust, unlike a 1031 exchange. When Should You Put a Deferred Sales Trust in Place? If you are selling an investment property, you have three windows in which you can set up your trust: at the close of escrow (as long as that language is put in place to establish the trust before the buyer removes all contingencies) day 46 (as long as you send to a qualified intermediary) and day 181 of a failing 1031 Exchange If you attempt a 1031 exchange and can’t find a property—or otherwise don’t think you can complete the exchange within the 180-day window—your qualified intermediary can move it to a DST. That gives you more time to find a suitable property. Otherwise, you can end up paying the taxes you were working to defer. Even if you feel that a 1031 exchange is a better fit for you now, being informed about DSTs can give you an efficient exit strategy instead of a tax nightmare. Commercial Real Estate and Syndication If you’re investing within a commercial real estate syndication, selling your property can be a headache. In a traditional syndication, the whole group has to agree when moving into a new deal. With a deferred sales trust, you can have a seamless move, and anyone who wants out can take their cut, pay their taxes, and be done. Not everyone needs to agree on the outcome, making it an efficient move. A DST Gives you Options Whether the real estate market is down, you’re looking to leave the market or you’re shifting from a failed 1031, a deferred sales trust gives you flexibility. It’s also a useful tool in your estate planning, as it can be a part of your living trust and passed on to your beneficiaries. The real estate market isn’t always roses. Just like any asset class, it moves through a cycle. Don’t feel like you’re backed into a corner if you want to sell and don’t know where to reinvest right away. Common Questions About Deferred Sales Trusts Is a DST actually legal, or is it some kind of loophole? It's 100% legal, built on IRS Code §453 (installment sale rules), and not a gray-area trick. It’s a tax strategy the IRS already knows about and allows, provided it’s structured correctly. What reporting requirements do I have for my DST with the IRS? You'll receive annual tax documents showing your distributions, but the trust itself handles most compliance requirements through the trustee. What happens to my DST if I die before receiving all the payments? The trust doesn’t just disappear; it can keep paying your beneficiaries under the terms you’ve set. They’ll pay taxes as they receive distributions, so the deferral benefit can continue across generations if managed correctly. What happens if the IRS says my DST wasn’t done right? If it’s poorly structured as an example, if you have a related-party trustee or control the funds directly, the IRS could call it a sham and hit you with the full tax bill. This is why working with an experienced DST professional is important. About Brett Swarts Brett Swarts is the CEO of Capital Gains Tax Solutions and every year equips hundreds of business professionals with the Deferred Sales Trust tool. His experience includes numerous Deferred Sales Trusts, Delaware Statue Trusts, 1031 exchanges. He has also closed $85,000,000 in commercial real estate brokerage transactions. Brett is an active commercial real estate broker and investor himself with experience and holdings in Multifamily, Senior Housing, Retail, Medical Office,

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 want. Reasons Against Exchanging Though the tax benefits of a 1035 exchange are important, we recommend erring on the side of caution when it comes to exchanging a policy. This often boils down to cost. When you first open a new life insurance policy, you’re paying for the cost of insurance upfront—this is why your cash value takes a few years to “break even.” After a certain point, your cash value breaks even and surpasses the amount you have paid in premium. When you do an exchange, you start over with a new life insurance policy. Which means paying the costs up-front. And if you’re not yet at the break-even point on your first policy, you could be giving up alot of capital that you'll never recover on that policy. Another instance where the 1035 exchange may not be helpful? When the cost of insurance in your new policy is greater. You’ll have guarantees but at a much steeper cost. In which case other solutions might have better results. Regardless, know that you have options when a policy isn’t right for you. You’re not stuck. What You Really Should Know When it comes to a 1035 exchange, it’s important to note a few hoops you’ll have to jump through. The first is that you must still qualify for your new policy. You’ll have to go through the health exam and other application requirements to be insured. In some cases, you may qualify, but with a rated status. A "rated" insurance policy places more risk on the insurance company for insuring you, so the cost increases. However, in many cases, this doesn't pose a problem large enough to prevent you from exchanging the policy. But, if the cost of insurance is too high, you may be better off keeping your insurance and do what you can to keep it from lapsing. Additionally, in a 1035 exchange, you can’t expect to have 100% of your premium available to you. However, you can expect to access more than 90% of the cash value that is transferred. The 1035 Exchange Process The process of doing a 1035 exchange is time-consuming, and commissions are low so that advisors are not incentivized to do 1035 exchanges more than necessary. Insurance companies are, first and foremost, built to protect the interests of the insured (you). Once you and your advisor have determined that this process makes sense for you, it’s time to start the exchange. Although cumbersome, the steps of the process are in your best interest. You’ll start by applying for your new insurance policy as you normally would. Then on the application, you’ll list the policies you own and state that you want to 1035 a specific amount of money from a particular company. The new company will then contact the old company, who will contact you for confirmation. They will list all the pitfalls of the exchange, as well as the regulations. Once you’ve agreed, the process will continue similarly to any other insurance application process. Is a 1035 Exchange Right for You? You should feel confident in your decision, and a financial advisor who listens to you and helps you learn is a good starting point. They can help you determine the best path, and how it fits into your entire financial picture. At The Money Advantage, we exist to help wealth creators build time and money freedom with cash flow strategies, privatized banking, and alternative investments free of stock market volatility so you never have to worry about running out of money. Find out your next best steps by grabbing a slot on our calendar. Follow us by subscribing and rating us on Apple Podcasts, or The Money Advantage on YouTube and Facebook to join us for live conversations. Learn more about how Privatized Banking is an ideal place to store cash that gives you the most safety, liquidity, and growth, so you can leverage your cash and earn returns in 2 places at the same time.