The Money Advantage Podcast

In today’s post, Bruce and I (Rachel Marshall) want to bring you behind the scenes of a candid and educational conversation we had with Matt Ewald, Vice President of Life Insurance at Advisors Excel. If you’ve ever wondered when and why to use guaranteed universal life insurance (GUL) —especially in the context of estate planning—this one is for you. We’ve been having more and more conversations with families who aren’t just thinking about how to grow their wealth—but how to keep it intact for the next generation. And when estate taxes enter the picture, the stakes change. It’s not just about protecting income anymore—it’s about protecting impact. About making sure what you’ve built doesn’t get lost in fees, confusion, or government claims. Because when it comes to life insurance in the context of wealth transfer, you’re not just planning for protection—you’re planning for legacy. Let’s get into it. Why This Conversation MattersFrom Infinite Banking to Estate Strategy: A Shift in FocusGuaranteed Universal Life insurance 101: What It Is (and Isn’t)Estate Planning and the Tax ConversationThe Myth of “Set It and Forget It”What About Accessing Capital?Roth Conversions, IRA Taxes, and Legislative RiskThe Real Value: Peace of Mind, Not Just Rate of ReturnWhat We CoveredBook A Strategy Call Why This Conversation Matters If you’re like most of our clients, you’re already successful. You’ve created wealth, you’ve stewarded well—and now you’re asking deeper questions. Questions like: How do I pass on what I’ve built with intention? How do I shield my estate from unnecessary taxation? Is whole life the only tool for this? Or is there something else I should consider? In this blog, we’re breaking down exactly what guaranteed universal life insurance is, how it’s different from traditional IULs and whole life, and why it could be a strategic piece in your legacy plan. From Infinite Banking to Estate Strategy: A Shift in Focus We spend a lot of time on this podcast talking about whole life and its power as a privatized banking system—a way to store capital, access liquidity, and fund your life on your own terms. But not every financial goal calls for cash accumulation. Sometimes, the goal isn’t to use the money during your lifetime at all. It’s to transfer wealth efficiently, minimize estate taxes, and ensure your heirs receive more—without the friction and loss. And that’s where guaranteed universal life enters the scene. Guaranteed Universal Life insurance 101: What It Is (and Isn’t) Matt Ewald described guaranteed universal life insurance as a permanent term contract. That phrase stuck with me. Here’s what it means: GUL is designed to give you the most death benefit for the least premium. Unlike cash-rich whole life or traditional IULs used for banking or income, GUL is a protection-first strategy. The focus is not on growing cash inside the policy. The focus is on locking in a death benefit that will be there guaranteed—no matter what the market does. And what makes it guaranteed? The no-lapse guarantee rider. This rider is the linchpin. It says, “As long as you pay the premium exactly as illustrated, this policy will not lapse—no matter how the underlying market indexes perform, no matter what cap rates change, no matter what happens behind the scenes.” It’s simple. It’s predictable. And it’s ideal for estate planning when death benefit certainty is the priority. Estate Planning and the Tax Conversation Here’s the reality we’re facing: The estate tax exemption today is high—around $13 million per person. But it won’t stay there forever. Just 20 years ago, it was $1 million. And the political winds are already shifting toward reducing the exemption again. That means more families will face estate tax exposure in the future—even those who don’t consider themselves “ultra-wealthy.” And taxes at death are not just a theoretical problem. They’re real. They can erode up to 40% or more of an estate—unless you have the right strategy in place. Guaranteed universal life insurance solves for one specific problem: funding the tax bill without selling off assets. Think about it. You’ve built a portfolio of businesses, properties, IRAs, and investments. But how much of that is liquid? And will your heirs have to sell it off—at a discount—to pay Uncle Sam? Guaranteed life insurance sidesteps that risk. The death benefit shows up when it’s needed most, with zero taxes owed. It provides instant liquidity, bypasses probate, and funds the liability without touching your estate assets. That’s powerful. Here’s the key takeaway: Use the right tool for the right job. As Matt said, trying to make one policy do everything usually leads to a diluted result. When we compartmentalize—designing different policies for different outcomes—we maximize both performance and peace of mind. The Myth of “Set It and Forget It” A mistake we see often? Assuming that once your policy is in place, your work is done. Matt said it best: “No policy is as good as it is sold. It’s only as good as it’s serviced.” Timing matters, especially with guaranteed universal life insurance. Premiums must be paid on time—consistently—to maintain the guarantee. If you’re late or miss a year, the no-lapse rider could be compromised, and that defeats the whole point. That’s why we always recommend automatic payments, annual reviews, and clear communication with your advisor. This isn’t “set it and forget it.” This is stewardship. And stewardship is what legacy is made of. What About Accessing Capital? Here’s where guaranteed universal life insurance and whole life differ dramatically. If you want to use your policy to: Borrow against your cash value Fund real estate Launch a business Create passive income streams Or serve as your personal bank Then GUL is not your tool. Guaranteed universal life insurance is a single-purpose strategy: high death benefit, minimal premium. It’s the opposite of banking-focused whole life. Roth Conversions, IRA Taxes, and Legislative Risk Another reason this conversation is so timely? The Secure Act and Secure Act 2.0 changed the game. Now, when your heirs inherit a Roth IRA, they must liquidate it within 10 years. That means no more lifetime tax-free growth. And if it’s a traditional IRA, the tax hit could be severe—especially if they’re already in a high tax bracket. As Bruce shared, life insurance can be a smart strategy here too. You can: Pay taxes now on your IRAs through strategic Roth conversions Reposition that after-tax money into life insurance Pass on tax-free death benefit with no RMDs and no 10-year liquidation rule And unlike Roths, there’s no legislative risk of future taxability. Life insurance proceeds are protected under current law—and have been for over a century. The Real Value: Peace of Mind, Not Just Rate of Return Let’s make one thing clear: Yes, the internal rate of return on a guaranteed universal life insurance policy can be “better” if you die early. But no one wants to die early. The real value here isn’t in financial ROI. It’s in emotional ROI. It’s the peace of knowing your family won’t have to sell the business. It’s the clarity of knowing the IRS won’t get a windfall. It’s the satisfaction of designing your legacy—not leaving it to chance. That’s what GUL delivers. Not cash value you can use—but certainty your heirs can count on. What We Covered Let’s bring this all together. Guaranteed universal life insurance (GUL) is a strategic tool for high-net-worth families looking to minimize estate taxes and maximize transfer efficiency. It’s different from whole life—not better or worse, just designed for a different job. The no-lapse guarantee ensures death benefit certainty—as long as premiums are paid exactly as planned. These products are not for cash access, banking, or flexibility—they are for protection only. Legislative risk is real, and life insurance helps hedge against future tax changes. Your legacy is too important to leave to chance. Whether you’re preparing for future estate tax exposure, or simply want to steward what you’ve built with clarity—there are tools and strategies that can help you do that. Use the right tool for the right job. And if you’re not sure which one you need? That’s what we’re here for. Don’t wait. Your legacy is not the caboose of your life—it’s your engine. Let’s design it with purpose. Book A Strategy Call Are you ready to take control of your finances and legacy? We offer two powerful ways to help you create lasting impact: Financial Strategy Call – Discover how Privatized Banking, alternative investments, tax-mitigation, and cash flow strategies can accelerate your time and money freedom while improving your life today. Let us show you how to align your financial resources for maximum growth and efficiency. Book a Strategy Call with our team today. Legacy Strategy Call – If you want to uncover your family values, mission, and vision, and create a legacy that’s about more than just money, we can guide you through the process of financial stewardship and family leadership. Save time coordinating your family’s finances while building a legacy that lasts for generations. Book a Legacy Strategy Call to learn more about how we can help. We specialize in working with wealth creators and their families to unlock their potential and build a meaningful, multigenerational legacy.

There’s a story Buffy Ruthardt shared that still gives me chills. She and her husband Darren were on a drive, just processing life and legacy—wondering aloud what it might look like for their children to live in their inheritance while they were still alive. Not just financially, but spiritually, relationally, and generationally. https://www.youtube.com/live/dMMgfxEohsI It was a bold idea. But they didn’t know how to do it. No roadmap. No clarity. No strategy to get there. And then… they heard a Facebook ad for Seven Generations Legacy®. That was the nudge. They followed that moment of divine appointment to begin faith-based legacy planning, and today, their family is operating with a whole new level of clarity, unity, and purpose. “We were doing our best… but we had no tracks to run on.”Faith-Based Legacy Planning in ActionFrom Disconnected Assets to a Unified Legacy VisionThe Meaning: Writing Down the Culture That Was Already ThereThe Mechanism: Getting the Legal and Structural House in OrderThe Money: From Siloed Accounts to Stewardship StrategyThe Fruit of Faith-Based Legacy Planning: Family Meetings, Health Goals, and a Future PodcastWhat It Really Means to Align Wealth with ValuesWant to Build Your Own Legacy?Book A Strategy Call “We were doing our best… but we had no tracks to run on.” I’ll never forget this moment. Buffy and Darren sat across from me on Zoom, eyes bright with conviction, reflecting on their journey. They’d built a beautiful life—decades of hard work, provision, blessing. But as they looked at their children, now adults, they knew something deeper was stirring. “We had direction,” Buffy said, “but no map.” That’s when they found the Seven Generations Legacy® Coaching Program. And everything changed. They weren’t just searching for a way to preserve wealth. They were on a mission to steward something sacred: their faith, their values, and the legacy they knew God had placed in their hands for generations to come. Faith-Based Legacy Planning in Action When we talk about faith-based legacy planning, we’re not just talking about trust documents or estate strategies. We’re talking about shaping the kind of family culture that lasts beyond your lifetime. That’s what Darren and Buffy came looking for—and that’s what they built. They had wealth. They had faith. They had a vision. What they needed was a mechanism. At The Money Advantage™, we don’t talk about inheritance the way the world does. This isn’t about how much you leave—it’s about what you leave in the people you love. If you’ve ever thought… “I’ve built something valuable—but how do I pass it on with meaning?” “Our kids aren’t quite ready… but I want to guide them.” “We have the assets, but not the structure. Where do we start?” …then you’re not alone. And this story is for you. In this episode of The Money Advantage™ Podcast, we unpack their full journey—from feeling stuck with disjointed entities and unspoken hopes… to confidently stewarding their family’s meaning, mechanism, and money with purpose.We’ll walk you through Darren and Buffy’s real-life experience using the Seven Generations Legacy® process, including: Why they felt stuck, even after decades of success How they aligned their faith, finances, and family The power of creating meaning and mechanism—not just money What happened after they hosted their first Family Legacy Summit This isn’t theory. This is transformation. If you’ve ever wondered how to truly align your values with your wealth—or how to pass on something deeper than money—this story is for you. From Disconnected Assets to a Unified Legacy Vision Darren and Buffy didn’t come to Seven Generations Legacy empty-handed. They had two decades of successful business ownership, investments, and assets. But what they didn’t have was an integrated plan—or a way to ensure it wouldn’t all unravel when passed to the next generation. They weren’t falling apart. They were faithful, successful, deeply intentional people. But like many high-capacity couples, they sensed the weight of stewardship without a roadmap. The vision was clear. The how was not. Their words? “We didn’t want to just turn it over to our children and not teach them how to care for it and steward it.” They had a vision, but no tracks to run on. The first step in faith-based legacy planning was aligning their wealth with their why. And that meant starting with meaning. The Meaning: Writing Down the Culture That Was Already There One of the most powerful moments in their process was realizing—God had already written their family’s culture into their hearts. They just hadn’t articulated it yet. Through the Seven Generations Legacy framework, they began identifying their family values, clarifying their vision, and drafting love letters and a family guidance system that captured their heart and faith in written form. As Buffy said: “We realized how transformed we’d already been. The Lord had already done this for us—we just needed to write it down.” What started as a discovery turned into deep affirmation. They wrote their Family Guidance System, drafted love letters, captured their beliefs, and realized that legacy wasn't something to create from scratch. It was already alive inside them—it just needed to be written down. Scripture came alive. Vision crystallized. And suddenly, the Ruthardts were speaking to their children with renewed clarity, confidence, and unity. They weren’t just passing on assets. They were passing on identity. The Mechanism: Getting the Legal and Structural House in Order Meaning is critical. But without a structure—a mechanism—legacy becomes just a hope. This is where the real clarity clicked for Darren and Buffy. With our team’s help, they: Restructured outdated business entities Created a custom trust structure that fit their values Drafted guidance documents that aligned with their faith and family vision Put in place a system that could carry more abundance, not just preserve what they had This wasn’t just about legal compliance. It was about clarity and peace. “It felt like our house was in order,” Buffy said. “And that brought peace.” Their favorite part? The mechanism. Because it didn’t just organize their financial life—it brought their entire household into alignment. They now have structures that support stewardship, create clear roles, and honor the vision they’re passing on. The Money: From Siloed Accounts to Stewardship Strategy The money conversation came last—but not because it’s least important. In fact, it’s vital. But for Darren and Buffy, the money only made sense once the meaning and mechanism were clear. Then, they could allocate resources in a way that aligned with their values. Darren put it simply: “If you don’t take time to do this… you won’t.” They had the resources. But they didn’t want wealth to pass down without wisdom. They knew their children needed to understand how to steward what they’d built—and why it mattered. Through the Seven Generations Legacy framework, they brought their adult children into the conversation. They held their first Family Summit. They invited vulnerability. And by the end of the day? “No one wanted it to end,” Buffy said. They weren’t handing over money. They were handing over mission. From family summits to charitable vision, they’re now leveraging their wealth to support health, unity, and purpose—in their children’s lives and in their community. The Fruit of Faith-Based Legacy Planning: Family Meetings, Health Goals, and a Future Podcast The real results? They aren’t just financial. Darren and Buffy now lead regular family meetings with their adult children. They’ve aligned around shared health goals. And they’re launching a podcast called Roadmap to Renewal to help other families do the same. Buffy calls it “generational health transfer”—not just wealth or wisdom, but full integration of spirit, soul, and body. Their family is now on a mission. But they didn’t start there.  They started with a step. Clarity. Support. Vision. And a team walking with them every step of the way. What It Really Means to Align Wealth with Values What Darren and Buffy show us is this: Legacy isn’t what you leave behind. It’s what you build now with your family. They didn’t just create a set of documents. They created a living system that reinforces their values, blesses their children, and prepares them to be wise stewards. They built with eternity in mind—and with strategy that works. Their story is proof that faith-based legacy planning isn’t just possible—it’s powerful. It’s the bridge between financial success and generational impact. Want to Build Your Own Legacy? Buffy said it best: “We had abundance… but no tracks to run on.” Now, they’re building tracks—ones their family can follow for generations. If you’re in a place where you’ve built success but lack direction…If you’re craving clarity for your family’s future…If you want a legacy that outlives your lifetime… You are not alone. The Seven Generations Legacy process was designed for you. Because success alone isn’t enough. Your legacy needs meaning, mechanism, and money—aligned, integrated, and passed on with purpose. You don’t need to have it all figured out. But you do need to take the first step. Book A Strategy Call If you’re ready to dive deeper into creating generational wealth, start with my book, Seven Generations Legacy. It’s packed with actionable insights and strategies to help you build a strong foundation for your family’s future. Once you’ve explored the principles, let’s take the next step together. You can book a call with me at Seven Generations Legacy®,

Joe DeFazio, a frequent guest known for his comprehensive views on financial concepts, dives into the intricacies of designing whole life policies for Infinite Banking. The discussion reveals how proper policy design can sustain wealth rather than drain it, likening financial management to a grocery store transaction. He emphasizes the importance of starting strong and understanding the dynamics of base premiums versus paid-up additions. DeFazio also discusses generational wealth, the cost of savings account withdrawals, and encourages proactive financial strategies.

Joe DeFazio, a colleague of Rachel Marshall and expert in infinite banking, dives into a thought-provoking discussion sparked by a bold question on investing all income into whole life policies. They unpack the real implications of such a strategy, emphasizing a balanced approach to financial decisions. Key topics include the importance of mindset, the dangers of over-leveraging, and the strategic use of Paid-Up Additions for maximizing benefits. They advocate for viewing oneself as an invaluable asset in long-term financial planning.

Recently, Bruce shared a story that perfectly illustrates unexpected life challenges—his basement flooded, turning a peaceful Easter weekend into an emergency cleanup session. Just as unexpected problems can flood your home, unanswered financial questions can flood your business strategy, especially questions like: "Can you deduct life insurance premiums?" https://www.youtube.com/live/crKKtLvZ44k Tax questions, much like sudden home repairs, can disrupt your carefully planned financial landscape. Whether it's water damage or unclear tax regulations, not addressing the problem can lead to costly mistakes down the road. Today, Bruce and I aim to clear up one of these significant financial uncertainties for business owners. Why Understanding Life Insurance Deductions MattersUnderstanding the Deductibility of Life Insurance PremiumsCan You Deduct Life Insurance PremiumsThe Supreme Court’s Stance and Its ImplicationsStrategic Ways to Indirectly Deduct PremiumsAvoiding Short-Term Tax MistakesContracts vs. Accounts: Ensuring Long-Term CertaintyNavigating Complexity with Professional HelpThe Strategic Power of Life Insurance PremiumsBook A Strategy Call Why Understanding Life Insurance Deductions Matters The question "Can you deduct life insurance premiums?" isn't just a minor tax issue—it's central to building an efficient, effective, and robust financial strategy. Life insurance policies are powerful financial tools that, when used correctly, can significantly enhance your financial well-being. However, misunderstandings about their tax implications can lead to missed opportunities or even costly errors. In this detailed article, you'll gain clarity regarding the question "Can you deduct life insurance premiums?", the rationale behind IRS rulings, practical and legitimate strategies to indirectly achieve similar benefits, and the pitfalls to avoid in your quest for tax efficiency. By mastering these concepts, you'll be well-equipped to incorporate life insurance intelligently into your broader financial planning strategy. Understanding the Deductibility of Life Insurance Premiums Can You Deduct Life Insurance Premiums Bruce frequently encounters confusion among business owners about deducting life insurance premiums. Let’s clear this up immediately: in most cases, you cannot directly deduct life insurance premiums from your taxes if the business owner benefits directly from the policy. The IRS views this scenario as lacking genuine "economic substance," as the policyholder ultimately recoups these premiums through a tax-free death benefit, meaning there's no real economic loss to justify a deduction. The Supreme Court’s Stance and Its Implications Bruce highlighted a crucial Supreme Court ruling that set clear boundaries for tax deductions related to life insurance. This landmark decision explicitly stated that deducting premiums or interest on life insurance loans is generally not permissible when the insured party directly benefits. The reasoning is straightforward: since you or your estate will eventually receive these premiums back in the form of a tax-free death benefit, the premiums do not represent an actual financial loss or expense that justifies a tax deduction. Understanding this ruling can save you from potentially costly mistakes and help you align your tax strategies with IRS expectations. Strategic Ways to Indirectly Deduct Premiums Despite the restrictions, Bruce and I discussed legitimate and strategic methods to effectively reduce taxable income and indirectly finance life insurance premiums: Employing Family Members: Bruce pays his father for legitimate business-related marketing tasks. As his father falls into a lower tax bracket, this transaction reduces Bruce’s taxable income and generates additional cash flow, indirectly supporting life insurance premium payments. Paying Your Children: Another powerful strategy is employing your children within your business. For 2024, each child can earn up to approximately $13,500 without paying federal taxes due to the standard deduction. This method simultaneously offers tax savings for your business and allows your children to fund life insurance premiums or other personal expenses, effectively creating tax advantages for your family as a whole. Both approaches leverage legal IRS provisions designed to help businesses operate efficiently and strategically. Avoiding Short-Term Tax Mistakes Bruce and I firmly advocate against short-term, reactionary tax strategies. An important financial principle to remember is not letting "the tax tail wag the dog." It might seem beneficial initially to make large unnecessary purchases—like expensive equipment—solely for tax deductions. However, such actions often negatively impact your long-term profitability and financial health. Always prioritize genuine business needs and long-term strategic value over immediate tax relief. This principle ensures sustained profitability and a stronger overall financial foundation. Contracts vs. Accounts: Ensuring Long-Term Certainty One critical insight Bruce shared is distinguishing between financial contracts and financial accounts. Accounts, such as retirement and brokerage accounts, remain vulnerable to future tax code changes. In contrast, life insurance policies are binding contracts that offer stability and certainty. Once established, their terms cannot be altered by future tax legislation. This distinction is crucial for long-term tax and financial planning, providing predictable financial outcomes despite an unpredictable tax environment. Navigating Complexity with Professional Help Given the complexity of tax regulations and the frequent changes in IRS rules, partnering with knowledgeable tax professionals and life insurance strategists is invaluable. Bruce and I encourage every business owner to seek professional guidance regularly to ensure compliance, optimize strategies, and avoid costly errors. Expert advice helps you stay informed, proactive, and prepared for any tax law changes, ultimately securing your financial future. The Strategic Power of Life Insurance Premiums Returning to our core question: Can you deduct life insurance premiums? Direct deductions are typically disallowed, but savvy business strategies involving legitimate expenses—such as hiring family members or employing your children—can help reduce taxable income. This frees additional funds to support your life insurance strategies effectively. Additionally, the intrinsic advantage of life insurance policies as stable financial contracts ensures long-term financial certainty in a shifting tax environment. Understanding these nuances positions you to utilize life insurance strategically, maximizing your long-term financial success and stability. Book A Strategy Call Are you ready to take control of your finances and legacy? We offer two powerful ways to help you create lasting impact: Financial Strategy Call – Discover how Privatized Banking, alternative investments, tax-mitigation, and cash flow strategies can accelerate your time and money freedom while improving your life today. Let us show you how to align your financial resources for maximum growth and efficiency. Book a Strategy Call with our team today. Legacy Strategy Call – If you want to uncover your family values, mission, and vision, and create a legacy that’s about more than just money, we can guide you through the process of financial stewardship and family leadership. Save time coordinating your family’s finances while building a legacy that lasts for generations. Book a Legacy Strategy Call to learn more about how we can help. We specialize in working with wealth creators and their families to unlock their potential and build a meaningful, multigenerational legacy.

https://www.youtube.com/watch?v=0AIoJylhZNI The Infinite Banking Concept is a financial strategy, first codified by R. Nelson Nash, that uses high-cash-value, dividend-paying whole-life insurance so policyholders become their own bankers. They store savings, earn guaranteed growth and tax-deferred dividends, and then can borrow against the policy's cash value. This creates a powerful system where YOU control your capital, not Wall Street or traditional banks. You play a big game, and you want your money to keep pace. Being in control is essential to you, and your money is no exception. You don’t have time to be strung along every year, hoping for better returns. Instead, you want a system that works as long as you live, improving over time like a fine wine. Using your savings to mimic “the bank” with Infinite Banking fits your criteria. Privatized Banking is a golden key that unlocks and improves every other area of your financial life. With it, you reduce taxes, increase safety and liquidity, while earning competitive growth with built-in contractual guarantees. This elevates your ability to perform at the highest level in your life and business. Today’s article will walk you through the building blocks and what it does for you. Then, we’ll show you this system is a strategy that you do, not just a financial product you buy. What You'll Take Away From This Guide to IBC: Discover how to build your own private banking system using specially designed permanent life insurance. Learn why cash value growth gives you both competitive returns and financial security in uncertain times. See exactly how Infinite Banking works to create simultaneous protection and wealth-building opportunities. Find out why your life insurance coverage becomes your family's most valuable financial asset. Understand the strategy wealthy families have used for generations to create lasting prosperity. Table of contentsWhat Is Infinite Banking?What Is The Infinite Banking Concept?Where The Infinite Banking Concept (IBC) Fits into Your Cash Flow SystemWhy The Infinite Banking Concept Is a Better Place to Store Cash1) Provide Safety, Control, and Certainty2) Accessibility3) Emergency/Opportunity Fund4) Uninterrupted Compound Growth5) Competitive Rate of Return6) Reduce the Interest You Pay7) A Debt-Free Weapon8) Tax Benefits9) Shrinks Opportunity Cost10) Increases Protection11) Each Dollar Does More Than One Job12) Peace of Mind13) Legacy TransferIf Those Aren’t Your Goals, the Infinite Banking Concept Is Not For YouInfinite Banking: A Process That You DoWhat Makes Whole Life Insurance the Perfect Vehicle for the Infinite Banking Concept (IBC)?High Cash ValueA Place to Store CashDividend-PayingWhole Life Insurance PoliciesContractWith a Mutual CompanyWhat Makes Whole Life Insurance Cash Value Such a Great Vehicle for the Infinite Banking Concept?GrowthTax-AdvantagedNet ReturnsLong-Term Actual GrowthSafetyLiquidityYou Don’t Use up Your Cash Value, You Borrow Against ItInfinite Banking ExamplesHome RenovationBusiness EquipmentCar PurchasesInfinite Banking Disadvantages: Know the Trade-OffsUp-Front Drag on LiquidityPremium Discipline: Why You’ll WANT to Stay the CourseLong Game, Generational PayoffThe Infinite Banking Concept: The Bottom LineThe Infinite Banking Concept Puts the Power of Choice In Your HandsLearn More About R Nelson NashLearn More About the Infinite Banking ConceptFAQIs Infinite Banking life insurance or an investment strategy?How much money do I need to start Infinite Banking?Are there any risks I should be aware of?How does the cash value component keep growing when I borrow?Is the growth truly guaranteed? What Is Infinite Banking? What Is The Infinite Banking Concept?Infinite Banking is a process of reclaiming the banking function in your life. You become your own banker by creating your own banking system with dividend-paying whole life insurance. The first thing that makes this concept stand head and shoulders above the sea of financial products is that it is more than a product. It’s a strategy for using a particular product — a whole life insurance policy, to be exact. Rather than comparing it to a particular make and model of a racecar, it’s more like a particular style of racing in that car. Before we dive into the nuts and bolts of how it works, it is important to see how it fits into the bigger picture and why it’s relevant to your life. Where The Infinite Banking Concept (IBC) Fits into Your Cash Flow System The Infinite Banking Concept is just one step in the greater Cash Flow System. It’s the peanut butter to your cash flow sandwich. Infinite banking is sandwiched between Stage 1, where you’re being more efficient and keeping more money you already make, and Stage 3, where you’re making more from your investments. It’s what makes the sandwich a sandwich, not just two slices of bread. 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. Why The Infinite Banking Concept Is a Better Place to Store Cash 1) Provide Safety, Control, and Certainty Infinite Banking will solve your risk and volatility problems as a place to store your cash where it’s safe and won’t lose value. This gives you control. You don’t have to wonder if your personal bank will be there tomorrow, or what it will be worth. 2) Accessibility Your money is liquid. That means you can access money when you need it, without barriers or penalties. You won’t have to apply for or beg to use your own money.  Instead, it’s as simple as, “It’s mine. I want to use it. Please send me a check.” And the check shows up in your mail. 3) Emergency/Opportunity Fund Whether you want to buy an investment property, do a business expansion, buy out another business, or even cover a medical emergency or home remodel, you have access to capital. Your money isn’t segregated, imprisoned, or quarantined. You can use it for whatever you want, whenever you want to use it. 4) Uninterrupted Compound Growth It provides an alternative financing source outside of banks, credit unions, credit cards, or paying cash for major purchases. Instead of your only payment options being limited to loans and interest payments (Spender) or paying cash and giving up the ability to earn interest (Saver), you gain a third option. You get to earn interest, even while you’re using your cash (Steward). Life insurance policy loans allow you to become your own banker, earning compound interest without interruption, even while you put your money to work in another investment. 5) Competitive Rate of Return Instead of the dismal .08% growth on bank savings that makes it seem worthless to keep cash, your cash grows faster. With Infinite Banking, you earn a rate much higher than other safe, liquid assets provide. 6) Reduce the Interest You Pay Instead of paying a higher interest rate on uncollateralized loans, you get access to lower rates. How? This concept serves as the collateral that’s your ticket to lower rates and financing costs. Because you pay lower rates, you keep more of your dollars. 7) A Debt-Free Weapon Whenever you have enough assets to pay off your loans, even if you haven’t done so, you’re not in debt. When you build an Infinite Banking system, you’re gaining a valuable asset that you could use to pay off loans. This doubles as a secret debt-free weapon. 8) Tax Benefits Usually, the growth of your money incurs a growth of your tax bill. Instead, the growth inside is tax-advantaged. This shrinks your future tax liability and cuts unnecessary money leaks, so you keep more of your money. 9) Shrinks Opportunity Cost When you stop losing so many dollars to interest and taxes, you don’t forfeit what those dollars could have done for you. Instead, you keep the dollar, put it to work, and maximize its potential. 10) Increases Protection At the heart of Infinite Banking is a dividend-paying whole life insurance policy, which protects your income and ability to create wealth, whether you are here to see it through or not. It protects your human life value and your livelihood, ensuring that not even death can prevent you from building wealth. As a private contract, it has built-in privacy because there is no public database where individuals can look up how much life insurance an insured has. Also, because Infinite Banking can be used in business as well, it can fulfill the role of key man insurance, buy-sell agreement funding, or serve as an executive bonus. 11) Each Dollar Does More Than One Job One of the features of The Infinite Banking Strategy is the ability to harness the power of the same dollars over and over again. This keeps your money in your personal economy. In all other tools, once you use the dollars, they are gone forever, and you’re never able to use them again. You get to recycle the same money and use it an infinite number of times. 12) Peace of Mind Having money you can access when you need it fences out worry and stress. This gives you an abundance mindset that helps you focus on providing value and making more money. 13) Legacy Transfer The Infinite Banking Strategy allows for one of the most efficient methods of transferring your legacy to the next generation.  It keeps your estate intact, bypassing probate and arriving to your beneficiaries income-tax free so they won’t lose huge chunks of your estate in the process. If Those Aren’t Your Goals, the Infinite Banking Concept Is Not For You So, what’s the secret? Those sound like some pretty tall claims. How does Infinite Banking do all this? Now, if these 12 benefits energize you and make every fiber of your being say, “Yes,

Interested in finding out how to start a family bank? Today, Bruce and I talk with our friend and colleague, John Moriarty, Founder and President of e3 ConsultantsGROUP. https://www.youtube.com/watch?v=lNuuPfHW6Jg You’ll hear about his personal and business use of Infinite Banking, and the thinking behind a growing and evolving system of policies. John is smart, business savvy, and a leader who walks the talk of thinking differently with his finances. And it’s paying dividends – literally! We invite you to a behind-the-scenes conversation with an entrepreneur who has been using and loving their system of starting a family bank using whole life insurance policies for the past 11 years. You’ll find out exactly how and why this wealth creator is funding and using cash value life insurance on the regular. You’ll also witness the opportunity created by this method of cash flow management, so you can use family banking to store cash reserves. Tune in now! Table of ContentsIn This Episode On Family Banks with Cash Value Life Insurance, You’ll Find Out:Where A Family Bank Fits into Your Cash Flow SystemFamily Bank (Behind the Scenes)Breaking into FinanceThe Stock Market AppealA Family Bank PaysInfinite WealthMindset and Money HabitsDon't Fear LoansBenefits of Starting a Family BankCommon Misconceptions and RisksAbout John MoriartyTake the Next Step with Family BankingBook A Strategy Call In This Episode On Family Banks with Cash Value Life Insurance, You’ll Find Out: Why people with good money habits are frustrated and feel forced into the stock market. And the solution to your problem! Understanding the purpose of your money is more important than learning how a financial product works. How starting a family bank optimizes your economy, gets your money doing multiple jobs, and reduces your opportunity costs. A look at the most important component of Privatized Banking: how you want to use your money. What this wealth creator is investing in, and why. Where A Family Bank Fits into Your Cash Flow System Starting a family bank strategy with Specially Designed Life Insurance Contracts (SDLIC) is just one step in the greater Cash Flow System. It fits into Stage 2, a part of keeping and protecting your money. We said before that Privatized Banking is like the peanut butter to your cash flow sandwich.  It’s wedged between Stage 1 – keeping more of the money you already make – and Stage 3 – increasing your cash flow from investments. And it helps you do everything else better. Privatized Banking increases your financial efficiency, enables you to keep more of what you already make, amplifies your cash-flowing asset strategy, and accelerates your time and money freedom. Privatized Banking is the how of keeping and protecting your money, and specially designed life insurance is the what. Family Bank (Behind the Scenes) As an entrepreneur with several businesses, privatized family banking strategies are a generous part of John Moriarty’s practice, both personally and business-wise. See the details of his family banking system here: https://themoneyadvantage.com/family-banking-strategy/ 5:20 “I wouldn’t call myself a visionary…I’m blessed in that I find myself surrounded by really smart people in a lot of instances. And I gravitate to those types of people. What I try to do is basically garner as much knowledge from them as possible, figure out ways to give back to them, and then take what might seem like complicated processes and try to simplify them…When I see something that works, I don’t deviate from it…and if there are ways to improve that process, absolutely.” One of the foundational missions of John’s business is to awaken the entrepreneur within and teach these foundational strategies. Creating a Family bank is a way to have your money working for you in more than one place. Breaking into Finance John’s pivotal shift into the world of finance happened in college. He realized that he likely wouldn’t be continuing to play baseball and set his sights elsewhere. So he began an internship in the financial sphere. He spent the first eight years of his career path supporting other advisors, which helped him focus more on the concepts. In 2005, he worked with a business coach who introduced him to neuro-linguistic programming, which helped him to evolve his business. He realized that there was a gap between what life insurance does and what people believe about it. The insurance industry is the only industry that doesn’t defend why it’s necessary, the way banks and other institutions do. The Stock Market Appeal Even people with good savings habits find that they’re not getting rewarded for those habits, and effectively get forced into the market. Maybe you’ve felt this way. Good savings habits don’t always equate to success, but not for the reasons you’d think. If your money is in the bank, you can make maybe 1% on that money (at today’s rates), which essentially forces you to choose. Do you continue to pursue an account that does not help your principal to grow? Or do you increase your risk by entering the market? Many families choose to enter the stock market because it seems like the only option to accumulate wealth. Then, there’s the lesser-known way of starting a family bank, which will reward your good habits. If you don’t like the way things are today, you have the power to ditch the status quo. A Family Bank Pays A family bank is a key piece of financing the life you want, personally and in business. John has held life insurance for a long time, yet his first experience truly utilizing his cash value life insurance policy (what he refers to as specially designed) was in 2009. At this time, he was becoming more familiar with the Nelson Nash Institute and the Infinite Banking Concept. The recession raised a number of questions for the general public, so John implemented the strategy himself so he could recommend it with confidence in the future. He went all in, building and designing his own policies. He knew how the policies would be funded and what the cash value would be used for. The most important piece of advice John gives when creating a family bank is to examine the purpose of your money. What will it do for you, and what do you want from it? If the purpose of your money and the account you’re using to store it aren’t in alignment, you’ll have a harder time getting what you want. Infinite Wealth When you first create a family bank strategy, there’s a finite amount of money that can run through it. Yet if you continue to expand your family bank while allowing money to flow in and out, you can create infinite wealth. You have three resources—time, talent, and capital. If you think of your life in those terms, you will run your systems more efficiently. For safe money, you have two options: a commercial bank and your family bank. The latter provides liquidity while continuing to earn interest and expand your capacity. When you’re building your family bank, John lists two priorities: working with someone who has your best interests at heart and someone who can answer your questions. Insurance isn’t a magic solution, yet it can make you far more efficient. Mindset and Money Habits Interest rates and taxes are just numbers until you relate them to your personal economy or your business economy. Too often, these concepts are broadened, which doesn’t help you connect to them in authentic ways. If you start from these basic concepts, it becomes easier to implement high-level, flexible strategies like creating a family bank. This is because the key component is management—something you work with alongside your advisor. It’s not a “set-it-and-forget-it” strategy. A family bank is something that helps you live your life better. It’s meant to be used, not shelved. Don't Fear Loans If you have your money working for you, you can make choices about your money. Personal and business loans are both available, without question, in a family bank. This is an advantage that isn’t often afforded through bank financing. Loans, especially against your policy, are not something to fear. 51:00 “The fact that I have an outstanding loan balance… [is] something I can calculate and keep an eye on. But what I also know is, if…I just paid down the principal, and I don’t even touch the interest, I still know what that policy is going to generate as a return, net of the interest cost…I think it’ll end up being about 3%.The reality is, I know that all of the different investments I made, if even some of those turn out the way I expect, the actual creation of wealth vs. what I’ve got in my policies…will be 5- 10x that number. So, the reality is I’m not concerned about that interest cost because I know what I’m doing with my money.” 53:05 “For a client, the idea is, if you can see the potential of what this strategy can create for you…The idea is to figure out how you want to be utilizing the money, and then work with your advisors to structure that system so that it creates as much opportunity as possible for you.” Benefits of Starting a Family Bank Remember, learning how to start a family bank gives you far more than a place to store money. It’s about creating a secure financial system that serves your family for generations. One major advantage is tax efficiency. Cash value growth inside a properly structured whole life policy grows tax-deferred, and policy loans are typically tax-free when used wisely. Asset protection is another key benefit. In many states, the cash value of your policies is shielded from creditors, providing a layer of security that traditional savings accounts can’t match. Finally, internal family financing allows you to borrow from your system instead of relying on banks or lenders.

Do you want to build a family banking system that will provide capital to you and future generations? Come see behind the scenes as we talk about our Marshall Family Bank in real-time. https://www.youtube.com/watch?v=0buUbqGs5QQ Today, we discuss why we added another whole life insurance policy, how our cash value is growing, and our vision for using our family banking system as the foundation to grow generational wealth. So, if you want to see exactly how and why you can grow a family bank strategy to secure capital reserves for your family for generations to come… tune in now! Table of contentsWhy We Use Life Insurance for Our Private Family Banking SystemIdentify Your PrioritiesSafetyLiquidityGrowthThe Evolution of Our Family BankAdding a New Policy to the Private Family Banking SystemHow a Family Banking System Works in Real LifeWhy Get a Second Life Insurance Policy?Myths & Misconceptions About Private Family BankingTake the Next StepBook A Strategy Call Why We Use Life Insurance for Our Private Family Banking System Whole life insurance has the benefit of being a protection asset, as well as a place to store wealth. Just like you would tuck money in the bank, so too can you store money in a specially designed whole life insurance policy. The added benefit is, as Bruce states: [4:45] “You’re storing [money] for a reason or purpose. And if you want to try to maximize your wealth, what you really are looking for is what to do to keep that money in motion.” Whole life insurance does a few things for your savings. It keeps your money safe in a way that banks can’t. It allows you to grow your money with interest and dividends, and it provides you with the opportunity to leverage your money. The leverage piece is important because it gives you access to capital while being able to benefit from uninterrupted compound growth. Ultimately, we’ve chosen whole life insurance because it helps us align our money with our family’s purpose and mission. Identify Your Priorities With wealth-building and wealth preservation techniques, there comes a time when you must identify what is most important to you. The “big three” options are generally safety, liquidity, and growth. While you may be able to have all three components working for you, you only get to maximize two of the three. Choosing which one or two of these components you’re going to prioritize and maximize is critical. Safety Safety refers to how secure your money is. How much are you putting at risk? Is a lot of your money tied up in risky or volatile assets? The safety of your money may also depend on what debt you have and how well-protected your money is from creditors. Likewise, you can make your money safer with things like umbrella and liability insurance, to protect yourself from lawsuits and other things that erode your wealth. For safety, there’s often a cost trade-off. Insurance, for example, can protect your money from prying eyes, lawsuits, and liabilities—but it costs money. Similarly, you may feel that by not investing in riskier assets, you’re not maximizing your dollars. Liquidity Liquidity is how easily you can access your money. If you tie your money up in long-term investments and projects, it’s probably not very liquid. While you may not need all of your cash to be liquid, it’s important for many families to have an easy-to-access pool of money for emergencies and opportunities. Growth Growth is what most people think they want, which leads them to invest unwisely. Prioritizing growth has the potential to skyrocket your wealth. But depending on how you want to achieve your growth, it can be risky. And how much is growth worth if you lose it all? Similarly, you may think it’s a good idea to invest in or acquire lots of low-risk assets. But if they aren’t liquid, how much are they adding to your quality of life? While you may not maximize all three of the above components to wealth, you can have a pretty solid balance. Whole life insurance is one of those assets that scores pretty well in all three categories. Your insurance policy is protected from creditors and the IRS (as well as death), and the cash value is a liquid pool of money. And while the growth on a whole life insurance policy alone won’t make you rich, it does more to keep pace with inflation than the banks, and can be leveraged for investments that grow. [14:24] “We are willing to sacrifice a high growth for the maximum amount of safety and liquidity. And the reason for that is we are confident… we can earn a return in two places simultaneously, and that we can earn a much better return externally, outside of our policy.” The Evolution of Our Family Bank We began implementing the Infinite Banking Concept in 2012 with a policy on Lucas. The policy was with a mutual, dividend-paying company, and had an annual premium of about $10k. This policy served us well for a long time. We took out many policy loans over the course of having it, which we repaid with the cash flow from our business. We had a strong history of paying premiums, though sometimes we only paid the base premium, sometimes the full premium with PUAs, and other times, it was somewhere in between. After a while, we did a 1035 exchange to roll this policy into a new policy. This allowed us to work with a new company and begin a policy with a $20k annual premium. You can learn more about our 1035 exchange in our post, “The Marshall Family Bank: Why We Started a New Life Insurance Policy.” Adding a New Policy to the Private Family Banking System More recently, we added another policy to our family banking system portfolio. The purpose of our family bank strategy is to increase our net investible income, safeguard our money, and create a legacy that supports future generations of our family. Starting a new policy to further increase our cash value (our investible dollars) made sense with that vision. So, we opened a policy on me with $30k of annual premium, as well as a full $2.1 million of term insurance to get up to my full Human Life Value. When designing this policy, we also decided that we wanted to be able to fund it for as long as possible, if we wanted to. It fits into our vision for our money and our family bank strategy. For some people, it may be more important to fund it for a certain time period only. [33:03] “We said if we want to continue funding this, how do we guarantee that we have the ability to put in as much ongoing premium for as long as possible? And really, that’s because we tremendously see the value of not only increasing a death benefit through this growth, but also increasing our cash value and using this policy. The longer you have a policy in force, the more benefit you’re going to have from it.” How a Family Banking System Works in Real Life But exactly what is private family banking in real-world terms? In short, it's a carefully designed strategy using a cash-value whole life insurance policy to create an internal lending system within your family. Imagine you're ready to set up your private family banking system. Let's say you set up a policy with a $20,000 annual premium, which accumulates significant cash value over ten years. Your daughter heads to college, and your son has a new business idea. Instead of external lenders, they borrow from your family banking system. Your daughter’s tuition and your son's startup capital are funded through policy loans. Repayments, including interest, recycle money within your family, enhancing your collective prosperity and teaching responsible stewardship firsthand. Why Get a Second Life Insurance Policy? There are many reasons that getting a second life insurance policy made sense for our family and our private family banking system. When we first bought the policy for Lucas, he was the primary income earner. It made sense to have something in place to replace his income if needed. As our income has increased over the years, we knew we wanted another policy, so it made sense to take a whole life policy out on me, as well. In addition to the protection aspect, this also allows us to save at least 30% of our income. As our income continues to increase, we intend to continue increasing our savings. This helps us create a bigger and bigger pool of wealth with which to invest, spend on our family, and ultimately help ensure the success of future generations. Myths & Misconceptions About Private Family Banking Many people initially misunderstand private family banking, with one of the most common questions being, "What is private family banking—is it about secrecy or tax evasion?"  Absolutely not. It’s a fully transparent, legal, and structured family bank strategy designed to build generational wealth through a cash-value whole life insurance policy. Another myth is that life insurance isn’t suitable for banking purposes. In truth, a properly structured policy provides liquidity, safety, and consistent growth, perfectly positioning it as a powerful tool within your family banking system. Take the Next Step Looking back, we may not have done things much differently. However, we do wish we had gotten an earlier start. If we had started a policy just five years earlier than we did, we could be in a much different spot. Yet hindsight is 20/20, and we’re still grateful that we got started when we did. If you’re thinking about utilizing the family banking strategy, start as soon as you can. It’s an incredible journey, and one you’ll be glad you started sooner rather than later. While it’s important to figure out what you want from your policy and your system, don’t let the details weigh you down too much. Ultimately, something is still better than nothing, and whole life insurance is a flexible asset.

Discover the crucial link between estate planning and life insurance as experts dive into strategies that go beyond mere compliance. Learn why many families overlook the true purpose of their policies and how to create a legacy that lasts. Explore the differences between whole and universal life insurance and their impact on wealth transfer. Gain insights into the importance of education in preparing heirs for inheritance and the dangers of orphan policies. This conversation reveals how to effectively protect wealth and inform future generations.

Dive into the intricacies of infinite banking policy design, focusing on the essential components like base premiums, paid-up additions, and term riders. Discover how a well-structured policy can enhance cash flow and support long-term wealth building. Listen to insights on leveraging whole life insurance as a powerful financial tool, balancing security and liquidity, and the often-overlooked relationship between banking and insurance. Uncover the importance of thoughtful funding strategies and the risks associated with less optimal policies.