1 00:00:02,060 --> 00:00:05,540 (Transcribed by TurboScribe. Go Unlimited to remove this message.) Welcome to the Business Credit and Financing Show. 2 00:00:06,040 --> 00:00:08,460 Each week, we talk about the growth strategies 3 00:00:08,460 --> 00:00:10,260 that matter most to entrepreneurs. 4 00:00:11,020 --> 00:00:13,600 Listen in as we discuss the secrets to 5 00:00:13,600 --> 00:00:16,400 getting credit and money to start and grow 6 00:00:16,400 --> 00:00:17,240 your business. 7 00:00:17,460 --> 00:00:19,820 And enjoy as we talk with seasoned business 8 00:00:19,820 --> 00:00:22,680 owners, coaches, and industry leaders on a variety 9 00:00:22,680 --> 00:00:25,720 of topics from advertising and marketing to the 10 00:00:25,720 --> 00:00:28,140 nuts and bolts of running a highly successful 11 00:00:28,140 --> 00:00:28,720 business. 12 00:00:29,020 --> 00:00:31,340 And now, to introduce the host of our 13 00:00:31,340 --> 00:00:35,300 show, financial expert and award-winning author, Ty 14 00:00:35,300 --> 00:00:36,020 Crandall. 15 00:00:37,340 --> 00:00:38,740 Hello, and thanks for joining us today. 16 00:00:38,820 --> 00:00:39,940 I'm super excited you could be here. 17 00:00:40,020 --> 00:00:41,760 Look, today we're talking about infinite banking. 18 00:00:41,900 --> 00:00:43,280 And if you're not really familiar at an 19 00:00:43,280 --> 00:00:45,480 intricate level of what infinite banking is, you 20 00:00:45,480 --> 00:00:47,120 should be because it's really the key to 21 00:00:47,120 --> 00:00:49,100 creating long-term financial security. 22 00:00:49,320 --> 00:00:51,520 And that's exactly what we're going to dive 23 00:00:51,520 --> 00:00:51,940 in today. 24 00:00:52,080 --> 00:00:53,460 I mean, literally, we're talking to the guy 25 00:00:53,460 --> 00:00:55,640 that wrote the book on the topic. 26 00:00:55,740 --> 00:00:58,020 And with us today is Michael Hessian. 27 00:00:58,320 --> 00:01:01,160 Now, Michael Hessian is an authorized practitioner of 28 00:01:01,160 --> 00:01:04,099 the infinite banking concept, who's actually been implementing 29 00:01:04,099 --> 00:01:06,380 this powerful wealth strategy for his own family 30 00:01:06,380 --> 00:01:08,560 now for like well over 11 years. 31 00:01:08,940 --> 00:01:11,840 And he's actually guiding clients towards financial independence 32 00:01:11,840 --> 00:01:13,140 for more than seven. 33 00:01:13,280 --> 00:01:15,920 So as a wealth strategist at Factum Financial, 34 00:01:16,360 --> 00:01:19,240 Michael actually brings extensive real-world experience to 35 00:01:19,240 --> 00:01:19,640 his work. 36 00:01:19,960 --> 00:01:23,100 He previously spent 16 years as the owner 37 00:01:23,100 --> 00:01:25,940 -operator of a successful marine business, giving him 38 00:01:25,940 --> 00:01:28,940 firsthand insight into the financial challenges that we 39 00:01:28,940 --> 00:01:30,540 face as entrepreneurs, right? 40 00:01:30,540 --> 00:01:33,000 Now, Michael actually has had a strong background 41 00:01:33,000 --> 00:01:36,500 in trading options, futures, and currencies, along with 42 00:01:36,500 --> 00:01:39,760 investing and managing multiple different real estate properties, 43 00:01:40,140 --> 00:01:43,760 experiences that revealed the risks of relying solely 44 00:01:43,760 --> 00:01:45,780 on traditional financial systems. 45 00:01:46,160 --> 00:01:48,620 Now, actually, since he discovered the infinite banking 46 00:01:48,620 --> 00:01:50,920 system eight years ago, he and his wife, 47 00:01:51,040 --> 00:01:53,380 Anne, have built multiple policies and are passionate 48 00:01:53,380 --> 00:01:56,620 about helping families and businesses basically create stability 49 00:01:56,620 --> 00:01:57,700 and lasting wealth. 50 00:01:58,020 --> 00:01:59,740 Now, he actually lives in Rhode Island with 51 00:01:59,740 --> 00:02:00,040 Anne. 52 00:02:00,040 --> 00:02:02,700 And their two daughters and their beloved pets 53 00:02:02,700 --> 00:02:03,360 as well. 54 00:02:03,700 --> 00:02:05,040 Michael, thanks for joining me today. 55 00:02:05,420 --> 00:02:06,580 My pleasure, great to be here, Ty. 56 00:02:07,039 --> 00:02:08,479 Yeah, I appreciate it. 57 00:02:08,800 --> 00:02:09,680 Okay, so infinite banking. 58 00:02:09,840 --> 00:02:11,240 Look, here's the interesting thing. 59 00:02:11,320 --> 00:02:12,180 A lot of people don't even know what 60 00:02:12,180 --> 00:02:12,940 infinite banking is. 61 00:02:12,980 --> 00:02:14,740 So let's just start with the beginning. 62 00:02:15,380 --> 00:02:16,680 What is infinite banking? 63 00:02:16,880 --> 00:02:17,980 How does this ultimately work? 64 00:02:18,200 --> 00:02:18,740 Great question. 65 00:02:18,920 --> 00:02:20,440 It can seem daunting. 66 00:02:20,640 --> 00:02:23,540 So the infinite banking concept is basically the 67 00:02:23,540 --> 00:02:27,220 name that a gentleman named Nelson Nash gave 68 00:02:27,220 --> 00:02:29,600 to this about 25 years ago. 69 00:02:29,600 --> 00:02:31,900 He wrote this book behind me called Becoming 70 00:02:31,900 --> 00:02:33,640 Your Own Banker by R. 71 00:02:33,660 --> 00:02:34,260 Nelson Nash. 72 00:02:34,460 --> 00:02:37,580 He first published in 2020, I mean, 2000. 73 00:02:37,980 --> 00:02:41,380 He'd been teaching years prior to that, basically 74 00:02:41,380 --> 00:02:46,060 just alerting people, mostly financial professions and professionals, 75 00:02:46,560 --> 00:02:48,540 that they'd kind of dropped the ball and 76 00:02:48,540 --> 00:02:51,600 forgot about these longstanding whole life insurance contracts 77 00:02:52,060 --> 00:02:53,580 that you can get from these, what are 78 00:02:53,580 --> 00:02:55,720 called mutual life insurance carriers in the U 79 00:02:55,720 --> 00:02:58,660 .S. And they've been around for, in some 80 00:02:58,660 --> 00:03:00,040 cases, 108 years. 81 00:03:00,480 --> 00:03:02,220 And there are about maybe a dozen of 82 00:03:02,220 --> 00:03:03,420 them or so in the U.S. And 83 00:03:03,420 --> 00:03:06,060 he said, look, you've forgotten about these things. 84 00:03:06,360 --> 00:03:09,180 You're so focused on the stock market and 85 00:03:09,180 --> 00:03:11,560 401ks and all this stuff that puts people's 86 00:03:11,560 --> 00:03:12,180 money at risk. 87 00:03:12,580 --> 00:03:16,620 And there are these safe, guaranteed growing, what 88 00:03:16,620 --> 00:03:18,140 I call the perfect asset, which is the 89 00:03:18,140 --> 00:03:19,780 name of my company, in these whole life 90 00:03:19,780 --> 00:03:20,600 insurance contracts. 91 00:03:20,940 --> 00:03:23,380 And when you use them properly, you can 92 00:03:23,380 --> 00:03:25,920 assume the role of the banking function for 93 00:03:25,920 --> 00:03:26,420 yourself. 94 00:03:26,840 --> 00:03:28,640 So that's why he called it the infinite 95 00:03:28,640 --> 00:03:29,480 banking concept. 96 00:03:30,220 --> 00:03:32,020 So the idea is becoming your own banker, 97 00:03:32,340 --> 00:03:34,200 running your money, as much as your money 98 00:03:34,200 --> 00:03:37,680 that you're bringing in through these policies, structured 99 00:03:37,680 --> 00:03:40,280 in such a way that they grow guaranteed, 100 00:03:40,280 --> 00:03:42,000 there's no market risk inside of them. 101 00:03:42,380 --> 00:03:43,840 And then you can start to act like 102 00:03:43,840 --> 00:03:44,940 a bank for yourself. 103 00:03:45,080 --> 00:03:46,920 So that's, he's the one who created that 104 00:03:46,920 --> 00:03:49,380 term about 25 years or so ago. 105 00:03:49,800 --> 00:03:52,260 But really, it's simply using these long running 106 00:03:52,260 --> 00:03:54,440 whole life insurance contracts, set up a particular 107 00:03:54,440 --> 00:03:57,420 way that just have all these incredible benefits 108 00:03:57,420 --> 00:03:59,420 for now and in the future. 109 00:03:59,580 --> 00:04:01,780 And then because it's life insurance, also in 110 00:04:01,780 --> 00:04:05,600 a legacy and generational wealth component as well. 111 00:04:06,000 --> 00:04:08,720 So give me an idea, like whole life, 112 00:04:08,900 --> 00:04:10,840 how does a whole life insurance policy work? 113 00:04:11,580 --> 00:04:13,940 Typically, there's a lot of sort of bad 114 00:04:13,940 --> 00:04:16,700 publicity out there or people who are espousing 115 00:04:16,700 --> 00:04:18,360 other things who poo poo it. 116 00:04:18,760 --> 00:04:20,079 And one of the main things they get 117 00:04:20,079 --> 00:04:22,260 wrong about it is they treat it like 118 00:04:22,260 --> 00:04:23,460 it's an investment. 119 00:04:23,860 --> 00:04:24,620 And it's not. 120 00:04:24,900 --> 00:04:26,360 There's a reason I called my company the 121 00:04:26,360 --> 00:04:27,020 perfect asset. 122 00:04:27,220 --> 00:04:29,000 It's a fantastic asset. 123 00:04:29,140 --> 00:04:30,080 It's not an investment. 124 00:04:30,560 --> 00:04:32,640 Now, when these things get humming along and 125 00:04:32,640 --> 00:04:35,340 they're 10, 20 years old, the internal growth 126 00:04:35,340 --> 00:04:37,880 is very much investment-like. 127 00:04:38,000 --> 00:04:39,400 They yield inside of these things. 128 00:04:39,760 --> 00:04:40,640 It takes a while. 129 00:04:41,040 --> 00:04:43,740 So I think that's part of the problem 130 00:04:43,740 --> 00:04:46,820 is that people, they miscategorize it. 131 00:04:47,180 --> 00:04:48,720 But it is, and part of the reason 132 00:04:48,720 --> 00:04:50,660 when you do straight up whole life and 133 00:04:50,660 --> 00:04:52,780 don't set it up the correct way with 134 00:04:52,780 --> 00:04:55,120 the right companies, it can just take a 135 00:04:55,120 --> 00:04:57,500 long time for what's called the cash value, 136 00:04:58,100 --> 00:05:00,800 the accessible capital that you can use, a 137 00:05:00,800 --> 00:05:02,040 long time to grow. 138 00:05:02,540 --> 00:05:05,400 So that's, traditionally, people who don't really care 139 00:05:05,400 --> 00:05:07,860 about that, they're just looking for protection and 140 00:05:07,860 --> 00:05:08,760 they don't really care. 141 00:05:08,840 --> 00:05:10,260 They're looking for a big debt benefit. 142 00:05:10,800 --> 00:05:12,400 So that's partly why it's a straight up 143 00:05:12,400 --> 00:05:12,920 whole life. 144 00:05:13,360 --> 00:05:14,840 It has a cash value. 145 00:05:15,060 --> 00:05:16,580 It was called a cash surrender value. 146 00:05:16,980 --> 00:05:19,180 It's guaranteed for the premiums never to go 147 00:05:19,180 --> 00:05:19,420 up. 148 00:05:19,420 --> 00:05:22,300 It's locked into however the contract is written. 149 00:05:22,780 --> 00:05:24,120 And so that's, and so the idea is 150 00:05:24,120 --> 00:05:25,440 that you have to set them up the 151 00:05:25,440 --> 00:05:27,780 right way, which we know how, I know 152 00:05:27,780 --> 00:05:29,700 how to do with the right companies. 153 00:05:29,700 --> 00:05:32,060 And then it becomes as much more, more 154 00:05:32,060 --> 00:05:33,660 like a growing asset. 155 00:05:34,040 --> 00:05:36,060 So whole life is a simple term. 156 00:05:36,300 --> 00:05:37,320 It's for your whole life. 157 00:05:37,700 --> 00:05:39,000 It's gonna pay out at some point. 158 00:05:39,140 --> 00:05:41,500 Everybody graduates at some point, right? 159 00:05:41,840 --> 00:05:43,860 And the premiums are locked in and it's 160 00:05:43,860 --> 00:05:44,640 just, you have to set it up the 161 00:05:44,640 --> 00:05:47,260 right way so you can practice infinite banking. 162 00:05:47,260 --> 00:05:50,060 So hope that kind of explains it. 163 00:05:50,360 --> 00:05:51,300 Makes perfect sense. 164 00:05:51,520 --> 00:05:53,260 And the whole life, I love how you 165 00:05:53,260 --> 00:05:55,780 explained whole life because quite honestly, whole life 166 00:05:55,780 --> 00:05:57,360 and term life, the whole thing, I might 167 00:05:57,360 --> 00:05:57,940 be the only guy. 168 00:05:58,180 --> 00:05:59,780 It's always seemed a little bit confusing to 169 00:05:59,780 --> 00:06:01,400 me to be able to differentiate between the 170 00:06:01,400 --> 00:06:02,360 different kinds of policies. 171 00:06:02,360 --> 00:06:04,060 But what you say with whole life makes 172 00:06:04,060 --> 00:06:06,340 sense because the premiums are basically staying fixed 173 00:06:06,340 --> 00:06:08,960 throughout life, throughout the actual term. 174 00:06:09,300 --> 00:06:12,540 Yeah, they generally cash value whereas term policies 175 00:06:12,540 --> 00:06:15,400 are for very specific period of time. 176 00:06:15,400 --> 00:06:17,380 For people who are working, a lot of 177 00:06:17,380 --> 00:06:20,300 times their company will offer annual renewable terms. 178 00:06:20,440 --> 00:06:22,740 So like one year term is usually really 179 00:06:22,740 --> 00:06:24,720 cheap and it might be the debt benefit 180 00:06:24,720 --> 00:06:27,000 might be for some multiple of your income. 181 00:06:27,400 --> 00:06:29,120 And when you leave work, you'll lose it 182 00:06:29,120 --> 00:06:29,520 typically. 183 00:06:30,060 --> 00:06:31,800 And then there's 10 year terms and 20 184 00:06:31,800 --> 00:06:34,060 year terms and there's no cash value in 185 00:06:34,060 --> 00:06:34,220 that. 186 00:06:34,400 --> 00:06:37,120 The only time there's any value is that 187 00:06:37,120 --> 00:06:38,940 the person passes away and it pays out 188 00:06:38,940 --> 00:06:39,560 to your family. 189 00:06:40,160 --> 00:06:43,100 So other than that, that's the only value. 190 00:06:43,100 --> 00:06:46,300 And interestingly enough, Tai, there's something like 1 191 00:06:46,300 --> 00:06:49,080 % or less of all term policies actually 192 00:06:49,080 --> 00:06:51,340 pay out, which is really interesting. 193 00:06:51,920 --> 00:06:54,060 So just either people will let them lapse 194 00:06:54,060 --> 00:06:55,360 till they get a 10 year term and 195 00:06:55,360 --> 00:06:57,180 it comes up and they just wanted to 196 00:06:57,180 --> 00:06:58,680 cover a certain period of time. 197 00:06:58,820 --> 00:07:00,900 Like when they, maybe they had kids and 198 00:07:00,900 --> 00:07:01,980 they had a 20 year term. 199 00:07:02,060 --> 00:07:04,380 They wanted just to cover that time from 200 00:07:04,380 --> 00:07:06,380 when the kids grow up to be 18 201 00:07:06,380 --> 00:07:08,260 years old and hopefully leave the house. 202 00:07:08,540 --> 00:07:09,300 So that's the difference. 203 00:07:09,360 --> 00:07:10,940 But term has no cash value. 204 00:07:10,940 --> 00:07:14,540 It's strictly a payout and protection should the 205 00:07:14,540 --> 00:07:16,660 insured pass away in that period of time, 206 00:07:16,740 --> 00:07:18,060 whatever that period of time is. 207 00:07:18,520 --> 00:07:18,920 Perfect. 208 00:07:19,140 --> 00:07:20,880 And I appreciate the breakdown between the two. 209 00:07:20,960 --> 00:07:22,100 So I think I'm the only guy asking 210 00:07:22,100 --> 00:07:22,580 this a little bit. 211 00:07:22,700 --> 00:07:24,720 I've always been confused about term and whole 212 00:07:24,720 --> 00:07:25,020 life. 213 00:07:25,520 --> 00:07:27,500 So when it comes to whole life, I 214 00:07:27,500 --> 00:07:29,540 understand the concept of what you just laid 215 00:07:29,540 --> 00:07:31,880 down with insurance, but how does that do 216 00:07:31,880 --> 00:07:33,960 with like borrowing against it and being able 217 00:07:33,960 --> 00:07:36,380 to use it to bank as an actual 218 00:07:36,380 --> 00:07:36,740 bank? 219 00:07:36,800 --> 00:07:38,900 Like how does that structure of infinite banking 220 00:07:38,900 --> 00:07:39,260 work? 221 00:07:39,260 --> 00:07:40,140 So real quick. 222 00:07:40,360 --> 00:07:42,560 So as I said, each whole life policy 223 00:07:43,200 --> 00:07:45,000 has what's called a cash surrender value. 224 00:07:45,560 --> 00:07:46,320 It's interesting. 225 00:07:46,460 --> 00:07:49,060 This was actually implemented with whole life in 226 00:07:49,060 --> 00:07:50,640 the whole life industry back in the late 227 00:07:50,640 --> 00:07:51,460 1800s. 228 00:07:51,640 --> 00:07:54,020 Sometime in the 1880s, it was, you know, 229 00:07:54,040 --> 00:07:56,360 it was very, people were paying their premiums 230 00:07:56,360 --> 00:07:57,820 for their policies for protection. 231 00:07:58,200 --> 00:08:00,760 And in the companies, as an inducement to 232 00:08:00,760 --> 00:08:02,840 have them keep the policies and keep paying 233 00:08:02,840 --> 00:08:05,160 for them, they said, look, we have this, 234 00:08:05,260 --> 00:08:07,540 we're taking all these premiums and the companies, 235 00:08:07,660 --> 00:08:09,780 the life insurance companies, they do invest that 236 00:08:09,780 --> 00:08:12,580 money because they've got to grow and satisfy 237 00:08:12,580 --> 00:08:14,420 all these death benefits and everything that are 238 00:08:14,420 --> 00:08:15,640 going to happen at some point, right? 239 00:08:15,740 --> 00:08:17,480 So they, but they're very conservative. 240 00:08:17,640 --> 00:08:19,780 They typically do bonds and real estate and 241 00:08:19,780 --> 00:08:22,120 very safe, conservative types of investments. 242 00:08:22,660 --> 00:08:24,860 So they said, look, let's give these policy 243 00:08:24,860 --> 00:08:27,300 owners access to some of the money that 244 00:08:27,300 --> 00:08:29,320 they're putting into there, which will make them, 245 00:08:29,420 --> 00:08:32,100 it'll compel them to see it as not 246 00:08:32,100 --> 00:08:34,159 just something where it's payout when you pass 247 00:08:34,159 --> 00:08:36,100 away, but money that you can use the 248 00:08:36,100 --> 00:08:36,580 whole time. 249 00:08:36,580 --> 00:08:38,919 So that's, that really started back in the 250 00:08:38,919 --> 00:08:39,659 1880s. 251 00:08:40,080 --> 00:08:42,580 And so what happened is that the way 252 00:08:42,580 --> 00:08:44,680 they're structured, these things are, the cash value 253 00:08:44,680 --> 00:08:46,060 grows at a guaranteed level. 254 00:08:46,280 --> 00:08:47,980 And it's just with these companies that I 255 00:08:47,980 --> 00:08:49,780 use, there's maybe a dozen of them, as 256 00:08:49,780 --> 00:08:51,820 I mentioned earlier, I think, you can load 257 00:08:51,820 --> 00:08:54,180 these things up and get more of a 258 00:08:54,180 --> 00:08:56,600 particular type of premium into the cash value. 259 00:08:56,700 --> 00:08:59,420 Whatever's in the cash value, you can access. 260 00:08:59,620 --> 00:09:02,260 So up to 90, 95% of whatever's 261 00:09:02,260 --> 00:09:03,520 in the cash are under value. 262 00:09:03,520 --> 00:09:05,760 You can pull it out if you wanted 263 00:09:05,760 --> 00:09:07,640 to, withdrawals or surrenders. 264 00:09:08,100 --> 00:09:09,320 But what we do is we used to 265 00:09:09,320 --> 00:09:11,960 know you'd take loans out from the life 266 00:09:11,960 --> 00:09:14,760 insurance company collateralized by what's in your cash 267 00:09:14,760 --> 00:09:15,160 value. 268 00:09:15,480 --> 00:09:16,720 Now you go, why would I do that? 269 00:09:16,800 --> 00:09:19,340 Well, a couple of reasons, because that way 270 00:09:19,340 --> 00:09:20,600 you're not tapping into the principal. 271 00:09:21,320 --> 00:09:23,320 So in right now, the current rate is 272 00:09:23,320 --> 00:09:26,400 about 4% for guaranteed net of taxes. 273 00:09:26,560 --> 00:09:27,380 This is really important too. 274 00:09:27,460 --> 00:09:29,520 There's no taxation on this, on the growth 275 00:09:29,520 --> 00:09:31,560 or the access inside of the cash value. 276 00:09:31,560 --> 00:09:33,860 So this thing's growing at 4%. 277 00:09:34,320 --> 00:09:35,940 You need to buy a car, you take 278 00:09:35,940 --> 00:09:36,660 a loan out. 279 00:09:36,880 --> 00:09:39,560 So you have a $30,000 car you 280 00:09:39,560 --> 00:09:42,720 wanna purchase and rather than go finance it 281 00:09:42,720 --> 00:09:45,160 or pay cash, you take a loan out 282 00:09:45,160 --> 00:09:46,940 from the company based on your cash value, 283 00:09:47,460 --> 00:09:48,400 go buy the car. 284 00:09:48,760 --> 00:09:50,300 And then now you act like, okay, I'm 285 00:09:50,300 --> 00:09:51,720 both the lender and the client. 286 00:09:51,880 --> 00:09:53,800 So I was gonna spend maybe a thousand 287 00:09:53,800 --> 00:09:55,920 bucks a month for an outside lender for 288 00:09:55,920 --> 00:09:56,440 this vehicle. 289 00:09:56,800 --> 00:09:58,300 I'll do it in my own system. 290 00:09:58,400 --> 00:09:59,600 Then you pay it back to the life 291 00:09:59,600 --> 00:10:00,300 insurance company. 292 00:10:00,730 --> 00:10:03,580 It gets reapplied and it's like restocking the 293 00:10:03,580 --> 00:10:03,900 shelves. 294 00:10:04,480 --> 00:10:06,660 And the whole time the cash value was 295 00:10:06,660 --> 00:10:08,260 never depleted because you didn't take it out 296 00:10:08,260 --> 00:10:08,540 of there. 297 00:10:09,080 --> 00:10:09,660 Does that make sense? 298 00:10:10,200 --> 00:10:11,340 So you don't tap into the principal. 299 00:10:11,820 --> 00:10:11,920 Yeah. 300 00:10:12,440 --> 00:10:14,100 So let me ask you this then. 301 00:10:14,200 --> 00:10:15,500 I would think it would take a while 302 00:10:15,500 --> 00:10:16,980 to accumulate. 303 00:10:16,980 --> 00:10:18,820 In this example, you just gave me for 304 00:10:18,820 --> 00:10:19,280 a car. 305 00:10:19,500 --> 00:10:20,760 I would think it would take a while 306 00:10:20,760 --> 00:10:23,780 to accumulate enough cash value to ever even 307 00:10:23,780 --> 00:10:26,880 be able to really access any legitimate amount 308 00:10:26,880 --> 00:10:27,440 of money. 309 00:10:27,560 --> 00:10:29,820 So that's what my brain immediately defaults to. 310 00:10:30,140 --> 00:10:31,480 Is that not the case? 311 00:10:31,540 --> 00:10:33,860 Like how fast am I accumulating and how 312 00:10:33,860 --> 00:10:35,940 much am I accumulating of cash value that 313 00:10:35,940 --> 00:10:38,300 I can actually use to reinvest as ever 314 00:10:38,300 --> 00:10:39,820 I choose to reinvest? 315 00:10:40,340 --> 00:10:41,240 That's a good point. 316 00:10:41,420 --> 00:10:43,760 I think one thing is usually what I'll 317 00:10:43,760 --> 00:10:46,160 do is to go through this process of 318 00:10:46,160 --> 00:10:49,080 understanding this better with our clients as we'll 319 00:10:49,080 --> 00:10:51,200 identify, is there some chunk of money that 320 00:10:51,200 --> 00:10:52,460 we can get this thing started with? 321 00:10:52,720 --> 00:10:54,300 A lot of times that there's money sitting 322 00:10:54,300 --> 00:10:56,100 idly in a savings account or something. 323 00:10:56,680 --> 00:10:57,800 And these don't have to be very big 324 00:10:57,800 --> 00:10:58,220 policies. 325 00:10:58,220 --> 00:11:00,640 I have some younger people who are maybe 326 00:11:00,640 --> 00:11:02,080 $7,000 a year. 327 00:11:02,280 --> 00:11:03,660 So if you break that up monthly, it's 328 00:11:03,660 --> 00:11:05,460 less than a thousand a month. 329 00:11:06,020 --> 00:11:07,220 And you can do it monthly. 330 00:11:07,320 --> 00:11:08,520 If you do it monthly, it does take 331 00:11:08,520 --> 00:11:10,300 longer for there to be cash in there. 332 00:11:10,400 --> 00:11:12,660 But typically what I do with folks, we'll 333 00:11:12,660 --> 00:11:15,620 identify some premium amount that works for them. 334 00:11:16,060 --> 00:11:17,820 As low as 7,000, probably the largest 335 00:11:17,820 --> 00:11:19,140 one is maybe 50,000. 336 00:11:19,940 --> 00:11:21,480 We just see what you're, everybody's different. 337 00:11:21,560 --> 00:11:22,220 We see what you have. 338 00:11:22,360 --> 00:11:25,320 And then you structure it such that, let's 339 00:11:25,320 --> 00:11:27,460 say someone does a $10,000 policy. 340 00:11:27,940 --> 00:11:29,720 The way the premiums are broken down, there's 341 00:11:29,720 --> 00:11:32,020 something called a base premium, which buys the 342 00:11:32,020 --> 00:11:33,020 bulk of the death benefit. 343 00:11:33,560 --> 00:11:34,940 And then there's something called paid-up additions 344 00:11:34,940 --> 00:11:37,220 premium, which goes right into the cash value. 345 00:11:37,480 --> 00:11:39,540 And that's the money that you can tap 346 00:11:39,540 --> 00:11:39,860 into. 347 00:11:40,320 --> 00:11:42,380 So let's say someone does 10,000 total. 348 00:11:42,880 --> 00:11:45,540 They have 10 grand sitting in the savings 349 00:11:45,540 --> 00:11:47,800 account or they get a windfall from something. 350 00:11:48,380 --> 00:11:50,140 We get started, you pay the annual premium. 351 00:11:50,640 --> 00:11:53,860 Two weeks later, there's about, probably almost all 352 00:11:53,860 --> 00:11:55,820 of that, 7,000 of it will probably 353 00:11:55,820 --> 00:11:57,500 be in the cash value, three of it 354 00:11:57,500 --> 00:11:58,120 base premium. 355 00:11:58,860 --> 00:12:00,460 And then you can borrow against that 10. 356 00:12:00,560 --> 00:12:03,520 So I've had people with smaller policies start 357 00:12:03,520 --> 00:12:05,740 going after debt, existing debt. 358 00:12:06,100 --> 00:12:07,120 That's what my wife and I did. 359 00:12:07,160 --> 00:12:08,500 The first time we got a policy, we 360 00:12:08,500 --> 00:12:10,680 had some higher interest credit card debt. 361 00:12:11,340 --> 00:12:13,200 We came into some money from the death 362 00:12:13,200 --> 00:12:15,040 of my father-in-law. 363 00:12:15,300 --> 00:12:16,840 And we were able to start a policy 364 00:12:16,840 --> 00:12:19,000 and get like 20,000 into the cash 365 00:12:19,000 --> 00:12:21,400 value, took a loan out, paid off two 366 00:12:21,400 --> 00:12:24,320 credit card debts that were at like 29%. 367 00:12:24,840 --> 00:12:26,980 And then just assume the role of lender. 368 00:12:27,100 --> 00:12:28,620 And then the money we were sending over 369 00:12:28,620 --> 00:12:31,300 here, we just redirected it back into our 370 00:12:31,300 --> 00:12:31,740 system. 371 00:12:32,280 --> 00:12:34,220 So it's really, so it depends. 372 00:12:34,340 --> 00:12:35,280 Everybody's a bit different. 373 00:12:36,180 --> 00:12:38,140 And if you have to do it on 374 00:12:38,140 --> 00:12:39,800 a monthly basis, it can take a little 375 00:12:39,800 --> 00:12:42,020 while, but it's pretty quick. 376 00:12:42,320 --> 00:12:42,800 It just depends. 377 00:12:42,840 --> 00:12:44,120 I think one thing too, is that people 378 00:12:44,120 --> 00:12:45,500 have to get their head wrapped around. 379 00:12:45,900 --> 00:12:47,620 If you're running your, the money that you're 380 00:12:47,620 --> 00:12:49,220 making, where are you putting it as you're 381 00:12:49,220 --> 00:12:49,720 making it? 382 00:12:49,920 --> 00:12:52,120 And once people understand the value of putting 383 00:12:52,120 --> 00:12:54,520 it into these things, instead of in a 384 00:12:54,520 --> 00:12:57,220 checking account or instead of a savings, first, 385 00:12:57,940 --> 00:13:00,040 then you create this safeguarding asset and then 386 00:13:00,040 --> 00:13:01,560 you go do whatever you need to do. 387 00:13:02,120 --> 00:13:03,540 So I hope that that helps. 388 00:13:03,860 --> 00:13:04,680 So everybody's a bit different. 389 00:13:05,180 --> 00:13:07,260 It's part of my job is to discern 390 00:13:07,830 --> 00:13:09,900 like what are the options here for each 391 00:13:09,900 --> 00:13:10,320 individual. 392 00:13:10,980 --> 00:13:12,540 So let me ask you this, and let's 393 00:13:12,540 --> 00:13:14,420 just use what we just described as an 394 00:13:14,420 --> 00:13:14,780 example. 395 00:13:15,100 --> 00:13:17,800 You come across a sum of money, your 396 00:13:17,800 --> 00:13:19,140 death in your family as an example. 397 00:13:19,460 --> 00:13:21,480 And you could use that money, let's just 398 00:13:21,480 --> 00:13:23,120 say, I'm just making up numbers, let's say 399 00:13:23,120 --> 00:13:23,820 it's $50,000. 400 00:13:24,420 --> 00:13:25,840 So I could take the 50, oh, let's 401 00:13:25,840 --> 00:13:27,160 just make it $100,000 because it's an 402 00:13:27,160 --> 00:13:27,420 even number. 403 00:13:27,560 --> 00:13:28,600 So we take $100,000. 404 00:13:29,100 --> 00:13:30,840 In all fairness, 50,000 is an even 405 00:13:30,840 --> 00:13:31,040 number. 406 00:13:31,180 --> 00:13:33,520 Anyways, this is why we ADHD people, we 407 00:13:33,520 --> 00:13:34,600 don't want to get too straggly here. 408 00:13:34,940 --> 00:13:36,140 So let's say it's $100,000. 409 00:13:36,840 --> 00:13:38,760 But in that case, you're saying, okay, look, 410 00:13:38,820 --> 00:13:40,800 we could put this into our policy, borrow 411 00:13:40,800 --> 00:13:42,760 against it to pay off high interest debt. 412 00:13:42,920 --> 00:13:45,520 But from a finance guy, what I need 413 00:13:45,520 --> 00:13:47,300 help with to better understand, I think a 414 00:13:47,300 --> 00:13:48,840 lot of people want, this is where they 415 00:13:48,840 --> 00:13:51,160 get confused with infinite banking, is that I 416 00:13:51,160 --> 00:13:52,980 can also just take the $100,000 and 417 00:13:52,980 --> 00:13:54,880 pay off the high interest debt and not 418 00:13:54,880 --> 00:13:57,160 put it anywhere and borrow against. 419 00:13:57,560 --> 00:13:59,380 So what is the benefit of putting it 420 00:13:59,380 --> 00:14:00,800 in somewhere where then I have to pay 421 00:14:00,800 --> 00:14:03,420 interest on that money to borrow against it 422 00:14:03,420 --> 00:14:05,160 to use it to pay it off versus 423 00:14:05,160 --> 00:14:06,860 if I just had the cash and I 424 00:14:06,860 --> 00:14:08,500 just used it to pay off the debt 425 00:14:08,500 --> 00:14:10,620 without putting it somewhere where then I have 426 00:14:10,620 --> 00:14:12,040 to pay interest to be able to pay 427 00:14:12,040 --> 00:14:12,340 it back? 428 00:14:13,000 --> 00:14:14,720 Yeah, no, it's a great point. 429 00:14:15,040 --> 00:14:15,600 There are a couple of things. 430 00:14:15,820 --> 00:14:18,260 So one of the very first things that 431 00:14:18,260 --> 00:14:20,920 Nelson talks about in his book is, to 432 00:14:20,920 --> 00:14:22,160 get your head, again, he calls it a 433 00:14:22,160 --> 00:14:24,500 concept for a reason because most people don't 434 00:14:24,500 --> 00:14:26,880 think in terms of operating like a bank 435 00:14:26,880 --> 00:14:28,760 for themselves because the banks do that, right? 436 00:14:29,200 --> 00:14:30,240 They have a pretty sweet gig. 437 00:14:30,400 --> 00:14:33,060 Obviously their business model has expanded out over 438 00:14:33,060 --> 00:14:35,460 the years, but it is simple as the 439 00:14:35,460 --> 00:14:37,880 banks, they hold capital, they lend it out 440 00:14:37,880 --> 00:14:39,880 at interest, and it always comes back to 441 00:14:39,880 --> 00:14:40,040 them. 442 00:14:40,420 --> 00:14:42,060 And now a quick break to hear from 443 00:14:42,060 --> 00:14:42,700 our sponsor. 444 00:14:43,740 --> 00:14:45,400 Hey, it's Ty Crandall with Credit Suite. 445 00:14:45,520 --> 00:14:47,000 Many of our subscribers want to get the 446 00:14:47,000 --> 00:14:48,740 most money to grow their business at the 447 00:14:48,740 --> 00:14:49,740 best terms. 448 00:14:50,160 --> 00:14:52,000 Whether you're looking for startup capital, low interest 449 00:14:52,000 --> 00:14:54,700 credit lines and loans, or business credit, we 450 00:14:54,700 --> 00:14:55,660 can definitely help you. 451 00:14:55,760 --> 00:14:57,620 So give us a call at 877-600 452 00:14:57,620 --> 00:15:01,280 -2487, or schedule your free consultation at creditsuite 453 00:15:01,280 --> 00:15:03,620 .com forward slash consult to see how much 454 00:15:03,620 --> 00:15:05,300 money you can get approved for today. 455 00:15:05,900 --> 00:15:07,380 And I think we all know that, and 456 00:15:07,380 --> 00:15:09,480 for good or ill, they pretty much run 457 00:15:09,480 --> 00:15:10,200 the world, right? 458 00:15:10,660 --> 00:15:12,240 They have a lot of power because of 459 00:15:12,240 --> 00:15:13,120 that business model. 460 00:15:13,280 --> 00:15:15,640 And so the idea is to replicate that. 461 00:15:15,640 --> 00:15:17,680 So, and what he says in his book 462 00:15:17,680 --> 00:15:19,120 is that, if you think about it, we 463 00:15:19,120 --> 00:15:20,500 finance everything in life. 464 00:15:20,600 --> 00:15:23,400 The problem that infinite banking solves is that 465 00:15:23,400 --> 00:15:25,700 first, if you agree with the premise that 466 00:15:25,700 --> 00:15:28,620 we finance everything, you either save up our 467 00:15:28,620 --> 00:15:31,280 income, like money coming in, and to buy 468 00:15:31,280 --> 00:15:32,900 our stuff, whether it's to pay for the 469 00:15:32,900 --> 00:15:36,140 mortgage, buy our car, food, groceries, everything. 470 00:15:36,760 --> 00:15:38,540 And when we do it that way, the 471 00:15:38,540 --> 00:15:40,140 money that we've earned, we've lost the ability 472 00:15:40,140 --> 00:15:42,200 to earn any income or any interest on 473 00:15:42,200 --> 00:15:44,560 that money because we spent it on the 474 00:15:44,560 --> 00:15:45,540 stuff we need, right? 475 00:15:46,180 --> 00:15:48,360 Conversely, if we can't afford that, what do 476 00:15:48,360 --> 00:15:48,580 we do? 477 00:15:48,640 --> 00:15:51,260 We borrow from lenders to get our stuff, 478 00:15:51,380 --> 00:15:53,680 and then we give them interest, again, losing 479 00:15:53,680 --> 00:15:55,920 the ability to earn any money on the 480 00:15:55,920 --> 00:15:57,480 money that we've generated ourselves. 481 00:15:57,940 --> 00:15:59,480 So what this does is you get it 482 00:15:59,480 --> 00:16:02,380 into your system, the whole life policies, again, 483 00:16:02,520 --> 00:16:06,500 properly designed first, where remember it's growing unimpeded 484 00:16:06,500 --> 00:16:07,920 and unencumbered at 4%. 485 00:16:08,450 --> 00:16:10,600 That number gets higher because these are also 486 00:16:10,600 --> 00:16:13,500 dividend paying life insurance companies, which I can 487 00:16:13,500 --> 00:16:14,140 get into later. 488 00:16:14,540 --> 00:16:16,580 So the idea is that if you get 489 00:16:16,580 --> 00:16:18,660 that notion that yeah, all this money that 490 00:16:18,660 --> 00:16:21,660 I'm spending, either cash saving up for cash, 491 00:16:22,060 --> 00:16:24,480 I lose the ability for that money to 492 00:16:24,480 --> 00:16:26,480 do anything other than buy myself stuff. 493 00:16:26,900 --> 00:16:29,460 And then by borrowing money, I'm just losing 494 00:16:29,460 --> 00:16:29,880 interest. 495 00:16:30,260 --> 00:16:32,460 I think there's a statistic out there that 496 00:16:32,460 --> 00:16:35,220 something like 34 cents of every dollar spent 497 00:16:35,220 --> 00:16:37,980 in the U.S. on average goes to 498 00:16:37,980 --> 00:16:39,360 satisfy outside interest. 499 00:16:39,980 --> 00:16:40,520 That's a lot. 500 00:16:40,800 --> 00:16:42,140 That's more than a third of every dollar 501 00:16:42,140 --> 00:16:42,820 just spent. 502 00:16:43,380 --> 00:16:44,620 So this solves that. 503 00:16:45,020 --> 00:16:48,620 So the idea, so if you do buy 504 00:16:48,620 --> 00:16:50,980 the car or pay off the debt, you 505 00:16:50,980 --> 00:16:52,640 could jack up that credit card again, of 506 00:16:52,640 --> 00:16:54,740 course, but then you're back in the same 507 00:16:54,740 --> 00:16:55,820 boat, right? 508 00:16:55,980 --> 00:16:57,800 You know, so the advantage is you put 509 00:16:57,800 --> 00:16:59,120 it in their policy first. 510 00:16:59,640 --> 00:17:01,600 The other thing is these loans from the 511 00:17:01,600 --> 00:17:03,680 life insurance company are unstructured. 512 00:17:03,680 --> 00:17:05,720 They charge a small interest rate. 513 00:17:05,800 --> 00:17:07,619 It's usually around 5% or so. 514 00:17:07,800 --> 00:17:09,780 They never put you on a payment program. 515 00:17:10,079 --> 00:17:11,440 It's completely up to you. 516 00:17:12,040 --> 00:17:12,880 So there's that. 517 00:17:13,640 --> 00:17:16,680 And so there's a lot of flexibility around 518 00:17:16,680 --> 00:17:16,940 it. 519 00:17:17,359 --> 00:17:18,859 And what you might say, why do the 520 00:17:18,859 --> 00:17:20,060 insurance companies do that? 521 00:17:20,160 --> 00:17:22,200 Well, they're on the hook for a death 522 00:17:22,200 --> 00:17:23,300 benefit at some point. 523 00:17:23,640 --> 00:17:26,160 So when you take loans out and say, 524 00:17:26,220 --> 00:17:28,340 if someone has like $100,000 bought a, 525 00:17:28,520 --> 00:17:31,420 say $2 million death benefit, and let's say 526 00:17:31,420 --> 00:17:34,280 someone took out a $50,000 loan and 527 00:17:34,280 --> 00:17:36,260 then they happened to pass away before they 528 00:17:36,260 --> 00:17:38,320 paid the loan back, the company would very 529 00:17:38,320 --> 00:17:41,120 simply go, okay, there's $2 million death benefit. 530 00:17:41,260 --> 00:17:43,500 There's a 50,000 outstanding loan with a 531 00:17:43,500 --> 00:17:44,120 little bit of interest. 532 00:17:44,460 --> 00:17:46,540 So we'll cut a check for the 2 533 00:17:46,540 --> 00:17:48,320 million minus that 50 grand plus. 534 00:17:48,780 --> 00:17:50,480 That's why it's a very safe loan for 535 00:17:50,480 --> 00:17:50,980 them to do. 536 00:17:51,220 --> 00:17:52,440 So it's unstructured. 537 00:17:52,720 --> 00:17:54,300 So you can do whatever you want. 538 00:17:54,400 --> 00:17:56,940 It behooves you to pay the loans back 539 00:17:56,940 --> 00:17:58,980 because then you're just restocking the shelves. 540 00:17:59,380 --> 00:18:00,700 And it's a way of using the same 541 00:18:00,700 --> 00:18:01,900 dollars over and over again. 542 00:18:02,200 --> 00:18:03,320 Yeah, makes sense. 543 00:18:03,400 --> 00:18:04,040 It's like the credit line. 544 00:18:04,120 --> 00:18:06,200 I mean, ultimately, in my example, if I 545 00:18:06,200 --> 00:18:07,400 took 100K and I just paid off the 546 00:18:07,400 --> 00:18:09,040 credit card debt, then I just take 100K 547 00:18:09,040 --> 00:18:09,920 and pay off the credit card debt. 548 00:18:10,100 --> 00:18:11,780 There's no money being earned. 549 00:18:11,840 --> 00:18:12,560 There's nothing in play. 550 00:18:12,940 --> 00:18:14,440 But if I took the $100,000 and 551 00:18:14,440 --> 00:18:16,580 invested it in the whole life policy, now 552 00:18:16,580 --> 00:18:18,400 let's just say, I mean, we're not holding 553 00:18:18,400 --> 00:18:20,240 these numbers, but let's just say that we're 554 00:18:20,240 --> 00:18:22,500 getting 4% return on that policy. 555 00:18:22,860 --> 00:18:24,840 Then we're getting some kind of dividends too. 556 00:18:24,960 --> 00:18:26,360 So now we're earning money on that. 557 00:18:26,600 --> 00:18:28,000 Then we could borrow against that money like 558 00:18:28,000 --> 00:18:30,300 5%, which is basically kind of like a 559 00:18:30,300 --> 00:18:30,820 wash there. 560 00:18:30,940 --> 00:18:31,760 It's almost a wash. 561 00:18:31,920 --> 00:18:32,860 It's almost a wash. 562 00:18:32,920 --> 00:18:35,140 So it's like, we basically get the money. 563 00:18:35,240 --> 00:18:36,720 I'm not saying for free, because it's not. 564 00:18:37,180 --> 00:18:39,920 But realistically, anyways, I'm not saying we're getting 565 00:18:39,920 --> 00:18:41,740 the money for free, but realistically, it's almost 566 00:18:41,740 --> 00:18:42,300 a wash. 567 00:18:42,360 --> 00:18:43,660 So it's like, I could put the money 568 00:18:43,660 --> 00:18:46,240 in something that continues to grow and then 569 00:18:46,240 --> 00:18:47,980 maybe borrow against it, maybe not. 570 00:18:48,240 --> 00:18:50,100 But when I do borrow against it, then 571 00:18:50,100 --> 00:18:52,000 I could basically get it where the money's 572 00:18:52,000 --> 00:18:52,340 a wash. 573 00:18:52,420 --> 00:18:53,840 When I'm not borrowing against it, then the 574 00:18:53,840 --> 00:18:56,020 money's sitting there earning interest, unlike a credit 575 00:18:56,020 --> 00:18:58,780 line that's only costing me money when I 576 00:18:58,780 --> 00:18:59,220 use it. 577 00:18:59,300 --> 00:19:00,600 But when I'm not using it, it doesn't 578 00:19:00,600 --> 00:19:01,760 do anything for me. 579 00:19:02,160 --> 00:19:04,300 Like it doesn't earn me anything. 580 00:19:04,840 --> 00:19:07,640 So a general good overview of the concept. 581 00:19:08,020 --> 00:19:09,560 Yeah, these things, they're pretty similar. 582 00:19:09,720 --> 00:19:11,260 They really are kind of like a hybrid 583 00:19:11,260 --> 00:19:14,620 of a high-yield savings account line of 584 00:19:14,620 --> 00:19:16,920 credit that you could, and they're very private. 585 00:19:17,240 --> 00:19:19,380 Once you get these contracts, it's a private 586 00:19:19,380 --> 00:19:22,520 contract between yourself and a financial institution. 587 00:19:22,740 --> 00:19:24,640 So for example, I've got some clients who 588 00:19:24,640 --> 00:19:27,740 they'll do these instead of a 529 plans 589 00:19:27,740 --> 00:19:29,720 for their kids for a future college. 590 00:19:30,280 --> 00:19:32,320 And they're under so many levels, to me, 591 00:19:32,400 --> 00:19:32,820 it's superior. 592 00:19:33,280 --> 00:19:35,220 One is that it's guaranteed. 593 00:19:35,760 --> 00:19:38,480 And over time, it's gonna grow better and 594 00:19:38,480 --> 00:19:39,520 they have no market risk. 595 00:19:40,080 --> 00:19:41,400 And if you start them young, when the 596 00:19:41,400 --> 00:19:44,620 kid's really young, by the time it's 20 597 00:19:44,620 --> 00:19:47,260 years on or so, the internal growth inside 598 00:19:47,260 --> 00:19:48,880 of these things will blow away the market. 599 00:19:49,120 --> 00:19:51,560 And it's all tax-free. 600 00:19:51,660 --> 00:19:53,940 It's all net of taxes, the internal growth. 601 00:19:53,940 --> 00:19:55,420 When you set them up the right way, 602 00:19:55,520 --> 00:19:56,500 you have to make sure you set it 603 00:19:56,500 --> 00:19:57,140 up the right way. 604 00:19:57,500 --> 00:19:58,660 Because if you don't, if you put too 605 00:19:58,660 --> 00:20:01,260 much cash in too early, the IRS flags 606 00:20:01,260 --> 00:20:03,520 it and says, hey, this is no longer 607 00:20:03,520 --> 00:20:04,180 life insurance. 608 00:20:04,460 --> 00:20:05,760 So it has to be a balance there 609 00:20:05,760 --> 00:20:08,320 of not having too much cash too soon. 610 00:20:09,000 --> 00:20:10,240 So, and then the thing about it too, 611 00:20:10,340 --> 00:20:12,660 like one of my kids chose not to 612 00:20:12,660 --> 00:20:14,620 go to college when she graduated high school. 613 00:20:15,100 --> 00:20:17,120 We had a 529 plan that was put 614 00:20:17,120 --> 00:20:20,300 together by my in-laws years ago. 615 00:20:20,440 --> 00:20:22,160 It was, we're grateful for that. 616 00:20:22,160 --> 00:20:24,180 My oldest took advantage of it, went to 617 00:20:24,180 --> 00:20:25,740 a very expensive school in the Northeast. 618 00:20:26,280 --> 00:20:28,180 It was great to have that 529 in 619 00:20:28,180 --> 00:20:28,460 place. 620 00:20:28,920 --> 00:20:30,140 My second didn't go to school. 621 00:20:30,660 --> 00:20:31,960 We were able to transfer it to the 622 00:20:31,960 --> 00:20:33,880 first one because you can do that, but 623 00:20:33,880 --> 00:20:37,280 otherwise you're out of luck because they can 624 00:20:37,280 --> 00:20:38,780 only be used for education. 625 00:20:39,380 --> 00:20:40,860 So if a kid gets older and they 626 00:20:40,860 --> 00:20:43,060 want to start a business instead, you're out 627 00:20:43,060 --> 00:20:43,380 of luck. 628 00:20:43,800 --> 00:20:45,320 So these things, they keep going. 629 00:20:45,520 --> 00:20:46,980 They end up, usually what I'll do is 630 00:20:46,980 --> 00:20:48,700 the parents will fund them, they'll own them. 631 00:20:48,740 --> 00:20:50,240 They can use them in their own banking 632 00:20:50,240 --> 00:20:50,680 system. 633 00:20:50,680 --> 00:20:52,680 I've had policies on each of my girls 634 00:20:52,680 --> 00:20:55,180 and we still fund them and own and 635 00:20:55,180 --> 00:20:56,180 they're part of our system. 636 00:20:56,300 --> 00:20:58,600 At some point, I'll hand ownership to them 637 00:20:58,600 --> 00:21:00,740 when they can handle the premiums and they 638 00:21:00,740 --> 00:21:02,100 start to understand it better. 639 00:21:02,560 --> 00:21:03,720 So there's just, there are all kinds of, 640 00:21:04,020 --> 00:21:05,200 and it keeps it, the other thing I 641 00:21:05,200 --> 00:21:06,940 like to say too, Ty, is that when 642 00:21:06,940 --> 00:21:08,120 you think about this, and I got this 643 00:21:08,120 --> 00:21:10,680 from my first mentor, we all run our 644 00:21:10,680 --> 00:21:12,180 own private economies. 645 00:21:12,600 --> 00:21:14,960 You hear about global economy and the U 646 00:21:14,960 --> 00:21:17,120 .S. economy, and we have our, we all, 647 00:21:17,200 --> 00:21:19,180 the most important economies are our own, right? 648 00:21:19,180 --> 00:21:20,920 The money that comes into our system, whether 649 00:21:20,920 --> 00:21:23,660 we're single or a family or a business, 650 00:21:23,760 --> 00:21:26,200 whatever, and how we manage and grow that. 651 00:21:26,780 --> 00:21:28,900 And when you start to take advantage of 652 00:21:28,900 --> 00:21:31,620 the infinite banking concept, you keep that money 653 00:21:31,620 --> 00:21:33,020 flowing inside your system. 654 00:21:33,280 --> 00:21:35,800 And the benefits to that is just, it's 655 00:21:35,800 --> 00:21:36,500 off the charts. 656 00:21:36,620 --> 00:21:38,960 And because there's no market risk, there's a 657 00:21:38,960 --> 00:21:40,440 real peace of mind around it too. 658 00:21:40,660 --> 00:21:42,500 I've experienced that myself. 659 00:21:42,560 --> 00:21:44,540 I think we have 10 policies right now, 660 00:21:44,540 --> 00:21:45,880 and I just love that. 661 00:21:46,040 --> 00:21:47,440 I know they're just doing their thing and 662 00:21:47,440 --> 00:21:48,700 I can tap into them when I want 663 00:21:48,700 --> 00:21:48,920 to. 664 00:21:49,280 --> 00:21:51,180 My hope is that, and my goal in 665 00:21:51,180 --> 00:21:52,500 the next year or so is to start 666 00:21:52,500 --> 00:21:55,880 hard money lending, is what one would look 667 00:21:55,880 --> 00:21:58,100 at it to like small business owners who 668 00:21:58,100 --> 00:22:00,560 need some funding and they're too small for 669 00:22:00,560 --> 00:22:02,580 venture capital or something like that. 670 00:22:02,600 --> 00:22:04,740 Or maybe the banks won't lend them because 671 00:22:04,740 --> 00:22:06,500 their credit score is not quite good enough. 672 00:22:07,000 --> 00:22:08,920 And then, but I'll borrow out of my 673 00:22:08,920 --> 00:22:09,320 policy. 674 00:22:09,460 --> 00:22:11,680 So I'm not tapping into my principle and 675 00:22:11,680 --> 00:22:14,300 I'm lending people who need the money for 676 00:22:14,300 --> 00:22:15,180 what they're up to. 677 00:22:15,180 --> 00:22:17,240 And then you set up a payment system 678 00:22:17,240 --> 00:22:18,740 where they pay me back. 679 00:22:19,120 --> 00:22:22,060 I just restock the shelves and I'm earning 680 00:22:22,060 --> 00:22:26,160 ongoing and ongoing yield, all tax free. 681 00:22:26,640 --> 00:22:26,760 Yeah. 682 00:22:27,580 --> 00:22:30,140 And there's so many truths in everything you 683 00:22:30,140 --> 00:22:30,480 say there. 684 00:22:30,580 --> 00:22:33,000 Like in Florida, we've something called prepaid college 685 00:22:33,000 --> 00:22:33,760 fund, which I love. 686 00:22:33,820 --> 00:22:34,660 I think it's a brilliant idea. 687 00:22:34,720 --> 00:22:37,100 Like I have my kids born, I can 688 00:22:37,100 --> 00:22:39,360 sit there and lock in the college rate 689 00:22:39,360 --> 00:22:41,480 then of what it would be when they're 690 00:22:41,480 --> 00:22:43,160 18 and graduate and I can start paying 691 00:22:43,160 --> 00:22:43,920 money towards it. 692 00:22:43,920 --> 00:22:46,000 But the problem is, is that that money 693 00:22:46,000 --> 00:22:48,440 can only be used for a Florida school. 694 00:22:48,580 --> 00:22:50,980 Now I do get my money back, unlike 695 00:22:50,980 --> 00:22:52,680 some of the other plans, but I don't 696 00:22:52,680 --> 00:22:53,760 earn any interest on it. 697 00:22:53,800 --> 00:22:55,160 I can just, it sat there for 18 698 00:22:55,160 --> 00:22:56,960 years and I earned nothing on it, right? 699 00:22:57,300 --> 00:22:58,320 In that scenario. 700 00:22:58,500 --> 00:23:00,920 So this is like a much wiser way 701 00:23:00,920 --> 00:23:02,480 to do than a lot of these other 702 00:23:02,480 --> 00:23:05,920 options because you're earning something on it while 703 00:23:05,920 --> 00:23:07,020 you're doing it. 704 00:23:07,040 --> 00:23:09,240 And then like, to your point, if you 705 00:23:09,240 --> 00:23:10,960 look at like Mark Cuban, you look at 706 00:23:10,960 --> 00:23:12,020 even Elon Musk, right? 707 00:23:12,020 --> 00:23:13,420 I got a huge crush on Elon Musk 708 00:23:13,420 --> 00:23:15,140 because what the guy does is brilliant, right? 709 00:23:15,400 --> 00:23:17,660 But sometimes we forget that he just had 710 00:23:17,660 --> 00:23:19,220 PayPal and he made money and then he 711 00:23:19,220 --> 00:23:20,920 invested it and it blew up. 712 00:23:21,320 --> 00:23:22,800 Cuban, they all did the same thing. 713 00:23:22,920 --> 00:23:25,140 Like the richest of the rich, they usually 714 00:23:25,140 --> 00:23:27,740 got something that worked and then invested money 715 00:23:27,740 --> 00:23:29,260 and it's the investment of money. 716 00:23:29,440 --> 00:23:31,860 It's like creating their own economy and their 717 00:23:31,860 --> 00:23:34,660 own system is how they obtain this wealth 718 00:23:34,660 --> 00:23:35,620 that's beyond measure. 719 00:23:35,780 --> 00:23:37,940 It's not usually the thing they did. 720 00:23:38,140 --> 00:23:40,220 It's how they invested the money from the 721 00:23:40,220 --> 00:23:42,060 thing that actually blew up. 722 00:23:42,060 --> 00:23:44,220 I mean, to your point, that's like, that's 723 00:23:44,220 --> 00:23:44,700 what they do. 724 00:23:44,820 --> 00:23:45,820 That's how they get as rich as they 725 00:23:45,820 --> 00:23:46,040 get. 726 00:23:46,700 --> 00:23:46,800 Yeah. 727 00:23:47,100 --> 00:23:49,760 Yeah, there's typically like a tier and I 728 00:23:49,760 --> 00:23:52,160 could, if anyone's interested, there's my partners at 729 00:23:52,160 --> 00:23:54,980 Factum have a really powerful presentation. 730 00:23:55,160 --> 00:23:56,020 It's the one I do when I do 731 00:23:56,020 --> 00:23:58,500 live presentations now because it's really powerful and 732 00:23:58,500 --> 00:24:01,520 it really talks about, it's like a pyramid 733 00:24:01,520 --> 00:24:04,880 and it's really about building a foundational wealth. 734 00:24:05,440 --> 00:24:07,600 So in everyone, that looks different for everybody. 735 00:24:08,020 --> 00:24:10,960 For a lot of people, it's a savings 736 00:24:10,960 --> 00:24:12,780 and liquidity don't have much of a savings 737 00:24:12,780 --> 00:24:13,720 and liquidity strategy. 738 00:24:14,280 --> 00:24:16,360 Americans are notoriously horrible at saving. 739 00:24:16,700 --> 00:24:17,980 And there's a reason for that because most 740 00:24:17,980 --> 00:24:21,120 of the environments, savings vehicles are not good. 741 00:24:21,420 --> 00:24:23,860 There's bank checking or savings accounts that earn 742 00:24:23,860 --> 00:24:24,440 next to nothing. 743 00:24:24,760 --> 00:24:27,200 And even those high yield savings accounts, they 744 00:24:27,200 --> 00:24:29,320 can change them anytime because the bank runs 745 00:24:29,320 --> 00:24:30,480 it, they control it. 746 00:24:30,540 --> 00:24:32,640 I have a client who she started her 747 00:24:32,640 --> 00:24:33,320 savings account. 748 00:24:33,420 --> 00:24:33,900 It was great. 749 00:24:34,020 --> 00:24:35,000 It was like five, 6%. 750 00:24:35,000 --> 00:24:37,480 Now it's three and a half because they 751 00:24:37,480 --> 00:24:39,200 control it, they get to change it. 752 00:24:39,720 --> 00:24:42,460 These insurance contracts get locked in and they 753 00:24:42,460 --> 00:24:43,140 can't change. 754 00:24:43,620 --> 00:24:45,720 Only the guarantee part can't change for the 755 00:24:45,720 --> 00:24:46,400 life of the contract. 756 00:24:47,000 --> 00:24:49,780 So it's just another example of how the 757 00:24:49,780 --> 00:24:50,760 benefit of these things. 758 00:24:51,200 --> 00:24:52,520 There's just so many benefits. 759 00:24:52,720 --> 00:24:53,760 And then there's that bottom part. 760 00:24:53,860 --> 00:24:56,100 Then people who have other clients who are 761 00:24:56,100 --> 00:24:58,760 crypto investors and they're a little savvier and 762 00:24:58,760 --> 00:25:02,700 they just want a safe place to park 763 00:25:02,700 --> 00:25:04,920 their money when they have a windfall and 764 00:25:04,920 --> 00:25:06,800 they want to exit a position, they have 765 00:25:06,800 --> 00:25:07,600 a place to put it. 766 00:25:07,600 --> 00:25:09,940 We can structure the contract, the life insurance 767 00:25:09,940 --> 00:25:12,200 contract to hold, be like a holding tank 768 00:25:12,200 --> 00:25:13,720 for future windfalls. 769 00:25:13,960 --> 00:25:16,180 And then they can just go back and 770 00:25:16,180 --> 00:25:17,620 then when they go buy their next round 771 00:25:17,620 --> 00:25:19,720 of crypto, they just take a loan from 772 00:25:19,720 --> 00:25:22,200 their policy and then that safe growing asset 773 00:25:22,200 --> 00:25:23,900 still chugging along doing its thing. 774 00:25:23,960 --> 00:25:26,000 And I've got clients who are real estate 775 00:25:26,000 --> 00:25:26,400 investors. 776 00:25:26,540 --> 00:25:27,160 The same thing. 777 00:25:27,220 --> 00:25:28,720 It's just, where are you putting your money 778 00:25:28,720 --> 00:25:30,780 before you deploy it for whatever you're up 779 00:25:30,780 --> 00:25:30,940 to? 780 00:25:31,580 --> 00:25:31,720 Yeah. 781 00:25:32,080 --> 00:25:33,480 And it's interesting you say, I mean, I'm 782 00:25:33,480 --> 00:25:35,440 literally just that last year I've had like 783 00:25:35,440 --> 00:25:36,140 a whole policy. 784 00:25:36,200 --> 00:25:37,200 I don't know how long I've had it. 785 00:25:37,200 --> 00:25:39,700 I wanted to invest in something and I 786 00:25:39,700 --> 00:25:41,200 looked at my options. 787 00:25:41,300 --> 00:25:42,520 I didn't want to pull cash from places. 788 00:25:42,680 --> 00:25:43,560 I was like, oh man, I got that 789 00:25:43,560 --> 00:25:44,040 whole thing. 790 00:25:44,520 --> 00:25:45,880 And then I did, I took it and 791 00:25:45,880 --> 00:25:47,440 it did exactly what I thought the money 792 00:25:47,440 --> 00:25:49,080 was going to do, multiplying quickly and got 793 00:25:49,080 --> 00:25:49,440 feedback. 794 00:25:49,800 --> 00:25:50,680 It was just perfect. 795 00:25:50,820 --> 00:25:51,900 And then you pay it off and then 796 00:25:51,900 --> 00:25:54,400 the thing just sits there for use in 797 00:25:54,400 --> 00:25:55,020 a future day. 798 00:25:55,440 --> 00:25:57,480 So I'm using exactly what you're talking about. 799 00:25:57,560 --> 00:25:58,400 And it's phenomenal. 800 00:25:58,680 --> 00:26:01,160 I never used it actually before at that 801 00:26:01,160 --> 00:26:02,920 time, but it works as a great tool 802 00:26:02,920 --> 00:26:04,160 to be able to multiply my money. 803 00:26:04,280 --> 00:26:05,700 There's a real aha moment when you start 804 00:26:05,700 --> 00:26:06,500 to use it, right, Todd? 805 00:26:06,500 --> 00:26:07,860 Yeah, I never thought of it. 806 00:26:07,960 --> 00:26:08,980 Usually it's like sitting there and then when 807 00:26:08,980 --> 00:26:10,260 you start to use it, you go, oh, 808 00:26:10,320 --> 00:26:11,620 that's what this thing's for. 809 00:26:12,200 --> 00:26:13,640 Yeah, somebody told me that a long time 810 00:26:13,640 --> 00:26:13,800 ago. 811 00:26:13,940 --> 00:26:15,140 I was like, yeah, that sounds like a 812 00:26:15,140 --> 00:26:15,480 good idea. 813 00:26:15,580 --> 00:26:16,740 That's the nice thing about having the show. 814 00:26:16,840 --> 00:26:17,720 Like, yeah, it sounds like a good idea. 815 00:26:18,040 --> 00:26:19,580 And that got like a policy set up, 816 00:26:19,600 --> 00:26:21,320 just sat there and didn't think anything about 817 00:26:21,320 --> 00:26:21,460 it. 818 00:26:21,540 --> 00:26:22,600 Then you use it and all of a 819 00:26:22,600 --> 00:26:24,580 sudden, like it's a significant gains. 820 00:26:25,140 --> 00:26:27,520 Michael, there's people watching this right now and 821 00:26:27,520 --> 00:26:29,240 listening that they're interested. 822 00:26:29,320 --> 00:26:30,180 They want to take the next step. 823 00:26:30,220 --> 00:26:31,180 They want to figure out more. 824 00:26:31,520 --> 00:26:32,960 Like you said, a lot of this is 825 00:26:32,960 --> 00:26:34,900 personalized to their own situation. 826 00:26:34,900 --> 00:26:36,520 So where should they go? 827 00:26:36,660 --> 00:26:38,360 What steps should they take to be able 828 00:26:38,360 --> 00:26:40,720 to talk to you more about how this 829 00:26:40,720 --> 00:26:42,320 can apply to them in their life and 830 00:26:42,320 --> 00:26:45,600 kind of get more specifics about their personal 831 00:26:45,600 --> 00:26:46,180 situation? 832 00:26:47,000 --> 00:26:48,400 I think a great, there are a couple 833 00:26:48,400 --> 00:26:49,560 of things that I think of right now. 834 00:26:49,820 --> 00:26:51,440 One would be, and I could drop a 835 00:26:51,440 --> 00:26:53,180 link in the chat or get it to 836 00:26:53,180 --> 00:26:56,320 you separately, is to, you can register for 837 00:26:56,320 --> 00:27:00,080 our foundational presentation that was created, I mentioned 838 00:27:00,080 --> 00:27:02,060 before, by my partners at Factor. 839 00:27:02,140 --> 00:27:04,020 I have a link for that. 840 00:27:04,480 --> 00:27:06,820 And you start out by watching, it's like 841 00:27:06,820 --> 00:27:08,640 a 50-minute presentation that just kind of 842 00:27:08,640 --> 00:27:10,800 walks you through what this is and what 843 00:27:10,800 --> 00:27:11,400 it can be. 844 00:27:11,800 --> 00:27:13,460 And then once you watch that main one, 845 00:27:13,500 --> 00:27:15,780 there are another five or six that are 846 00:27:15,780 --> 00:27:18,440 related to different things like real estate or 847 00:27:18,440 --> 00:27:21,300 automobile purchases, that kind of thing. 848 00:27:21,580 --> 00:27:22,560 So that might be a good way to 849 00:27:22,560 --> 00:27:22,780 do it. 850 00:27:23,440 --> 00:27:24,900 And then you can, you've never put you 851 00:27:24,900 --> 00:27:26,420 in my system, then I would know that 852 00:27:26,420 --> 00:27:28,140 you want to learn about it. 853 00:27:28,160 --> 00:27:29,320 And I can also drop my account on 854 00:27:29,320 --> 00:27:29,620 the link. 855 00:27:30,200 --> 00:27:31,800 People want to just reach out and book 856 00:27:31,800 --> 00:27:33,580 a time for us to have a conversation. 857 00:27:34,260 --> 00:27:34,400 Sure. 858 00:27:35,020 --> 00:27:36,380 That either or, so. 859 00:27:36,560 --> 00:27:37,260 All right, I love it. 860 00:27:37,340 --> 00:27:38,600 Well, thanks so much for coming on with 861 00:27:38,600 --> 00:27:38,860 us today. 862 00:27:39,120 --> 00:27:40,200 Yeah, you're welcome. 863 00:27:40,300 --> 00:27:40,660 My pleasure. 864 00:27:41,260 --> 00:27:43,100 So listen, if you're watching this, make sure 865 00:27:43,100 --> 00:27:45,860 you go to our show resources page. 866 00:27:45,920 --> 00:27:47,960 You can go to creditsweek.com right there. 867 00:27:48,040 --> 00:27:49,500 You'll be able to see our resources, go 868 00:27:49,500 --> 00:27:51,000 to podcasts, and you'll be able to see 869 00:27:51,000 --> 00:27:52,940 the show and be able to find Michael's 870 00:27:52,940 --> 00:27:53,300 episode. 871 00:27:53,460 --> 00:27:55,020 And you can get those special links that 872 00:27:55,020 --> 00:27:56,080 he actually is talking about. 873 00:27:56,140 --> 00:27:57,380 I'll put those right on the show resources 874 00:27:57,380 --> 00:27:57,760 page. 875 00:27:58,080 --> 00:28:00,700 Also, you can also go to factinfinancial.com 876 00:28:00,700 --> 00:28:03,180 and at factinfinancial.com, you can get more 877 00:28:03,180 --> 00:28:05,680 information from them, a lot of information on 878 00:28:05,680 --> 00:28:06,380 Factum's site. 879 00:28:06,740 --> 00:28:07,940 And then you can also go to the 880 00:28:07,940 --> 00:28:10,360 bottom of factinfinancial.com and you can find 881 00:28:10,360 --> 00:28:11,700 them on social as well. 882 00:28:11,860 --> 00:28:14,160 And then Michael's got his own place, like 883 00:28:14,160 --> 00:28:15,640 his own website, which is where I ended 884 00:28:15,640 --> 00:28:16,240 up finding them. 885 00:28:16,520 --> 00:28:19,000 And that is theperfectasset.com. 886 00:28:19,100 --> 00:28:21,600 That's the word, the, T-H-E, theperfectasset 887 00:28:21,600 --> 00:28:22,020 .com. 888 00:28:22,380 --> 00:28:24,100 I know I'm not pronouncing the correctly. 889 00:28:24,420 --> 00:28:24,960 I get that. 890 00:28:25,180 --> 00:28:26,480 But if I said the, then it sounds 891 00:28:26,480 --> 00:28:27,960 like, Ian, it started causing all kinds of 892 00:28:27,960 --> 00:28:28,360 confusion. 893 00:28:28,840 --> 00:28:30,420 So for the sake of this conversation, I've 894 00:28:30,420 --> 00:28:31,880 decided- No one says the, I don't 895 00:28:31,880 --> 00:28:32,200 think. 896 00:28:32,300 --> 00:28:33,400 I don't know, they may say the. 897 00:28:34,020 --> 00:28:36,980 We're gonna go with theperfectasset.com to go 898 00:28:36,980 --> 00:28:38,240 to theperfectasset.com. 899 00:28:38,320 --> 00:28:39,840 And that's actually Michael's site. 900 00:28:39,980 --> 00:28:41,380 You can get a lot of info there. 901 00:28:41,480 --> 00:28:43,820 I mean, it's shocking how much quality information 902 00:28:43,820 --> 00:28:45,360 is there for you to be able to 903 00:28:45,360 --> 00:28:46,260 look into as well. 904 00:28:46,320 --> 00:28:47,760 So make sure you check that out at 905 00:28:47,760 --> 00:28:51,820 theperfectasset.com or factinfinancial.com. 906 00:28:52,280 --> 00:28:54,660 And again, while you're there, make sure at 907 00:28:54,660 --> 00:28:56,460 Factum that you subscribe to their social as 908 00:28:56,460 --> 00:28:56,580 well. 909 00:28:56,580 --> 00:28:58,260 And don't forget to check out the Social 910 00:28:58,260 --> 00:29:00,020 to Show Resources page where Michael's got a 911 00:29:00,020 --> 00:29:02,300 few special links, including his calendar link where 912 00:29:02,300 --> 00:29:03,580 you can schedule with him directly. 913 00:29:03,780 --> 00:29:05,380 So thank you very much for tuning in. 914 00:29:05,580 --> 00:29:07,060 Take care and have a great day. 915 00:29:14,400 --> 00:29:17,620 You've been listening to the Business Credit and 916 00:29:17,620 --> 00:29:20,800 Financing Show with your host, Ty Crandall. 917 00:29:21,200 --> 00:29:23,380 Watch for our next episode to get even 918 00:29:23,380 --> 00:29:26,720 more insight on financing and growing your business. 919 00:29:27,060 --> 00:29:29,340 And don't forget to check us out online 920 00:29:29,340 --> 00:29:32,900 at creditsuite.com for even more business growth 921 00:29:32,900 --> 00:29:33,460 strategies.