Latest / The SmallBizChat with Melinda Emerson / What is Premium Financing with Dr. Verneka Murphy

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What is Premium Financing with Dr. Verneka Murphy · The SmallBizChat with Melinda Emerson

• 0:02
  321.
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  Lift off.
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  Ending small business failure.
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  Welcome to the Small Biz Chat podcast with the number one small business expert, Melinda
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  Emerson.
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  Melinda's goal is to end small business failure, and she'll give you the information
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  you need to succeed and live the life you dream of.
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  Now here's your host, the smallbizchat lady herself, Melinda Emerson.
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  Have you subscribed to the Small Biz Chat podcast?
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  Well, it's time.
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  Every Wednesday, we offer listeners bite sized actionable tips to start and grow a successful
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  small business.
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  In just 20 minutes or so a week, you can get a ton of insight and resources to propel your
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  business forward.
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  Be sure to subscribe to the Small Business Chat podcast today.
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  So today, we're gonna talk about how to leverage your business to become your own bank.
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  I don't know how many of you guys know, but 8,000 loans are turned down by banks every day
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  in America.
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  But what if you could be your own bank?
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  So we're going to talk about how you can use more of your business's money so that you don't
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  have to beg a bank for a loan anymore if you need money to grow your business.
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  Now, let me introduce my guest.
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  Doctor.
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  Monica Murphy.
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  She is a premium finance expert and business leader.
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  She's the CEO of the multi millionaire consulting group.
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  She specializes in transforming wealth building strategies that utilize leverage.
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  Her company signature system, the business trifecta integrates business finance and tax
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  expertise to help her business clients maximize growth by benefit you in all three areas.
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  Her company delivers tailored solutions designed to meet both business and personal
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  financial needs.
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  And if you want more information, go to the business trifecta.com.
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  Pranika, welcome to the Small Business Chat podcast.
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  Pranika Thank you so so much.
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  I'm so excited to be here.
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  All right.
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  So I'm sure that a lot of my listeners just heard the word premium finance for the first
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  time, and I'm not sure we all know what that is.
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  So can you talk to us about what premium finances and how small business owners can
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  leverage that to build wealth and generational wealth from their business?
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  Sure.
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  I would love to do that.
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  So let me tell you, Premion Finance is a very little known, little talked about area of
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  finance.
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  So they kind of call it the Loch Ness Monster of the finance industry.
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  So here's the great thing.
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  It is a tremendous financial tool that is based off of leverage.
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  So imagine if we could leverage the hard work that you've done in your business.
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  I will say it is for what we call our higher net worth clients.
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  Typically people have to have a net worth of at least $2,000,000 and up, but this is how
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  multimillionaires have built their wealth on the side.
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  So imagine within your business having that net worth, you've worked so hard.
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  What if there was an account so great that even the bank will fund it for you?
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  Imagine being able to get compound interest on that money.
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  Also, by tax codes, have it illegal to have losses and illegal for this money to grow with
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  taxes.
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  And what does this money look like growing alongside of your business?
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  What does that look like if we can 2, 3, 4 times plus your net worth just by you doing
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  business, same as usual?
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  So we're here to disrupt the status quo on how people really create more revenue and then even
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  build generational wealth all by leveraging their business income.
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  Okay.
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  Okay.
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  So you had me at 3x, 4x your money.
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  Right?
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  So so I need you to help me understand, just give me a little window of scenario.
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  Like, how does this happen?
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  Like, if I gotta have $2,000,000, does that mean I gotta give you 2 like like, like, how
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  how does it work?
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  Help me understand a little bit more.
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  No.
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  Here's the great thing.
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  We're looking at the assets you already own.
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  I will say within net worth, typically, when people talk about that, they are doing your
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  assets minus your liabilities.
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  But here, we don't subtract.
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  You just have to have the assets.
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  So for a lot of people, they can have that amount of money already in the gross within
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  their business.
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  Or if you think about your home has a certain net worth, your cars have a certain net worth,
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  you want to be able to leverage that to build dip to build wealth differently.
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  And, like I said, we can use the business income to do it, and it's all everything we do
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  is tax deductible as well.
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  So even though the bank is funding it, typically, there is interest that the client
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  has to pay.
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  But guess what?
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  One of the major issues that businesses have is the taxes.
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  I get told all the time.
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  I get killed on taxes.
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  Well, I mean, we can leverage this money to make more money within the business and then
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  turn around and knock down your taxable income, literally helping you to make more money and
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  keep more money.
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  Okay.
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  Alright.
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  So so I I I want to I you you you have, like, picked my whole ears up.
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  Okay.
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  Alright.
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  So tell me, how does life insurance play a role in premium finance?
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  Yeah.
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  So that is one
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  of
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  our amazing arsenals that we can use within this account.
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  So a lot of people don't know, really, they have been hooted, so to speak, on how life
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  insurance really works.
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  We use life insurance, and wealthy people only use life insurance to tax shelter their money.
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  I mean, by tax code, if you could have a great account that's performing this way, creating
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  all of this money for a lot of businesses, they are a sitting duck for liability.
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  If we can attach life insurance to this account, and it's a different type.
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  It's a different type that is very little talked about.
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  Anything that you readily know out in the public, this is not what these
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  multimillionaires and billionaires are doing behind the scenes.
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  They would never let you know their secrets.
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  They have fought hard for years, actually for decades, to keep this a secret.
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  So life insurance is going to do a few things for us, not only tax shelter the money, which
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  is the most important for a lot of businesses, but it makes sure that we can designate who
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  this money goes to.
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  Also, business owners get sick.
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  Times happen whenever people have accidents.
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  Sometimes life happens where an illness comes about, and a lot of times that takes a hit on
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  the the owner and the business.
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  You wanna be able to receive a check for that.
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  There's ways that we build this in.
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  And then, fourthly, welcome to the credit game.
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  Wealthy people do credit totally different.
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  People are used to hearing about a 7 20 credit score, a 850.
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  Wealthy people are not worried about that, or financially savvy people are not.
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  Because here, the way we do things, that whole big life insurance that's there is a line of
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  credit.
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  Their money keeps accumulating forever.
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  You cannot stop compound interest if you try.
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  It's just like the ticks on a clock.
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  But you can go and access your own money.
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  Your balance never goes down.
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  You can borrow from yourself, and it comes from the life insurance.
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  So wealthy people do credit.
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  Totally different.
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  So welcome to how the big boys play.
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  Oh, wow.
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  Wow.
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  Are you dropping some serious some serious game right here?
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  I just wanna make sure I understand what you're saying.
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  So you're saying I buy a really big let's just say I buy a $1,000,000 life insurance policy,
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  and it's a whole life insurance policy.
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  So I'm and I put more money into it.
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  So I don't just buy it and pay premiums.
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  I buy it and I put 200,000 in it cash just sitting there.
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  And then I can turn around and borrow from that same $200,000 and still have the insurance?
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  Well, let me stop you right there, Melinda.
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  We don't use Whole Life.
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  Whole Life is something that is readily known around around America.
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  A lot of people would never buy Whole Life.
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  They laugh at that.
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  If you think about it, if you purchase Whole Life Insurance and you throw money over there,
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  if something were to happen to you, typically, you don't get that money because guess what?
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  You only your family only you only purchase Whole Life Insurance.
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  So you're gonna get exactly what you paid for.
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  This is totally different.
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  This is a different type.
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  Let me tell you.
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  There is a veil behind what these people do.
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  It is a totally different type, and we make sure that this money is always compounding.
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  So if anything happens, the family you can always access your money, but the family will
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  also get the money that was put in plus the money that grew, plus that life insurance
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  piece, all wrapped up in one big bow and given to you, and it is void of taxes.
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  So we're not just talking about a $1,000,000 policy.
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  We don't that that's small in our world.
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  We're talking about how much do you want to borrow from yourself for life.
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  We're talking about 10,000,000, 20,000,000.
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  We we do plenty of policies for multimillionaires and billionaires.
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  How much do you want your money compounding and growing?
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  And as far as the life insurance fees, would you want to just have a $1,000,000 that you can
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  borrow for the rest of your life?
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  Or would you like to have 20,000,000, or would you like to have 50,000,000?
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  And your family just gets the balance of what's left on the life insurance piece plus the cash
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  that accumulated in the account.
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  So I'm telling you, we do things totally different.
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  And the amazing thing is everything we do is tax code compliant.
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  There's a reason why the wealthy make the money that they do and pay little to no taxes.
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  They have the law on their side.
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  So we're out to help small businesses, regular size, and even corporations be able to do this.
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  It's time to level up and play the game.
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  Don't hate the player.
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  Play the game.
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  I love it.
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  I love it.
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  Alright.
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  Now listen.
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  You've talked about a lot of stuff, and this stuff sounds amazing.
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  I mean, like, too good to be true.
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  Are there any risks associated with premium financing?
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  How can you protect your family's generational wealth?
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  Let me tell you something.
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  Anybody who knows about banks know that banks do not like risk, and you shouldn't either.
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  So if a bank is willing to fund the account, the risk is taken out.
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  So imagine by law, this account can only go up.
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  We eliminate losses, and there's a reason behind that.
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  There all of this is is is lined by tax code, but behind the scenes, there's a tax code that
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  says, if your account can only go one direction, up, which that's what anybody would
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  want.
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  Why would you want losses?
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  If your money could only go up, only mirror the upside of the stock market as well as compound
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  with compound interest, and all of that money can grow void of taxes, why wouldn't you want
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  that?
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  There's a tax code that allows that.
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  So you want your money going unidirectional.
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  Anytime you have an account where your money goes up and down, it's forever labeled as an
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  investment.
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  If it's labeled as an investment, you not only are subject to losses, but you are subject to
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  taxes, the two things that multimillionaires and billionaires hate the most.
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  So we are here to bring that to you so that you can also be on their status.
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  Oh, I think your website, the business trifecta.com, is gonna be blowing up after this
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  interview comes out.
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  Alright.
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  We're talking with doctor Benica Murphy, who is president of the multimedia consulting group,
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  and she is breaking it down for us about premium financing.
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  And how, if you got cast into your business, she can help you make that money work harder
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  for you.
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  Alright, Veronica talk to us about how does the structure of premium financing impact estate
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  planning or like, if you want to have a trust with all your assets and all this stuff in it,
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  does it interact with that or prevent you from doing that?
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  Oh, no.
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  Let me tell you.
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  The 2 go hand in hand.
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  So for a lot of our people, imagine, you know, having a fund that grows tax free off of
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  compound interest forever.
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  It is actually designed for estate planning.
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  So imagine if you were a business that was doing well.
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  You have accumulated all of these amazing things, not only money but assets, all of that
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  needs to be taken care of.
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  So while you're doing business as usual, you do have the money.
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  But what happens if something happens to you?
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  What happens if, for some reason, you are called home and you leave this earth?
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  All of that assets, all of those assets quickly turn to debt for the family.
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  It is a thin line.
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  So for a lot of our business owners, we want to focus on them having 20 times their net worth
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  depending on who they are, maybe even 30 times their net worth.
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  You want to be able for your family to pay everything else.
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  Everything.
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  If you had a $20,000,000 business, a $40,000,000 business, you want to be able to
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  settle the debts, have the business be debt free.
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  You also want to take care of the assets, make sure that they are debt free.
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  And imagine if your family now walks away with several 100,000,000 in a lot of cases, just
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  depends on how much we do, that, you know, they get to take that money and pick up the pieces.
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  I mean, I I I know death and grief is hard, but, you know, there are some things that can
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  make it slightly easier.
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  So you don't want to have all of those hardships added onto the family when that
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  happens.
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  You want to live well nice.
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  You, you want to live well now.
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  You want to have abundance now.
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  You want to be able to acquire assets now that are going to add to your network.
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  Have all of that making money along with this account.
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  You also then well, imagine having that much money and really being able to have those
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  choices, achieving that American dream.
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  And now you get to that place of affluence.
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  And all of this came from money within your business.
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  We didn't ask you to create 1 more dollar more than what you did the year before.
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  Let's leverage what you worked so hard for and make that money not only work for you now, but
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  for generations to come.
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  I guarantee you your name will be etched in your family's history.
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  They will never forget who you are.
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  If you could set up this type of account for you and your family, this is the real
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  definition of generational wealth.
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  Wow.
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  Wow.
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  Alright.
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  So if you've got a financial adviser, should you be, like, on speed dial calling this
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  person?
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  Be like, hey.
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  Get my money out of that 401 k mess.
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  We you know what I mean?
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  Like, what what is the next step that that someone who has no idea never heard about this
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  stuff before today?
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  What should they do?
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  Can they help them?
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  Well, you know what?
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  I'm going to talk about that question in 2 parts.
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  So I have gotten the question before, you know, can my financial adviser do this?
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  Well, here's the thing.
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  Financial advisers manage money.
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  Typically, this is not their realm.
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  This is why you don't hear about it.
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  Their money or the money that they make is in the management of your account.
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  But remember I said that wealthy people, multimillionaires, or financially savvy people
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  are not trying to do anything with money management because, remember, it subjects you
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  to the two things that they don't like the most, which is loss of their money and or
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  taxes.
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  Both of those are criminal in our world, so we want to stay away from that.
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  And your financial adviser, as I said, typically manages money.
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  So, no, you would want to call someone like us that was a Premium Finance expert.
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  So not only do we do Premium Finance, but we have a signature system that is in house
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  exclusive to our firm.
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  In addition to those extra pieces, we do have quite a few people on hand for you to make sure
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  your money is always working.
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  We bring to you CPAs, bankers, even attorneys.
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  And I'm gonna put something else out here exclusive on your podcast.
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  We even have IRS enrolled agent who shall remain nameless and faceless that we can run
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  things too through.
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  So everything we do is bull is is we make sure that it is bulletproof for the law.
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  Your financial adviser is not going to do that.
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  Everything we set you up with does not we take the risk out of it.
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  What we do is in direct comp conflict with your financial adviser.
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  So you want a premium finance expert like us, and we have a full team on hand for your
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  backing.
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  Now, secondly, how you mentioned about 401 ks and the SEP IRAs?
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  Guess what?
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  Wealthy or financially savvy people do not have those.
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  That's the cardinal sin too.
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  Your money is tied directly to the market.
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  You don't want your all of your wealth tied to anything that you have no control of.
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  So the idea is to get control.
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  People are emotional about money because they have no control.
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  Take the emotion out of it and make sure that you command what's happening with your money.
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  And Premium Finance and the way that we do things, even helping you become your own bank
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  will do exactly that.
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  Well, whoo, you have said a whole bunch, but I've got one more question for you.
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  What is the best business advice that you've ever gotten?
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  Best business advice?
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  I would say learn how money works.
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  Previously, a little bit just to throw this in.
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  Previously, I was a full time pharmacist for 13 years before I entered the wonderful world of
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  business, tax, and finance.
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  Never thought I would be here.
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  And so while I was book smart, no one ever taught me about money ever.
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  I used to let someone else handle my money and everything was amazing until the time that it
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  was not.
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  So I have a little bit of backstory.
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  I won't I won't put that.
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  I don't think you have I don't think you have the time for that.
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  But the best advice that I had was to learn how money works, take the variables out.
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  In life, there's going to be many things that happen that you can't control, but the idea is
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  to put a blocker in place for each and every one of those items and transfer the risk.
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  If something happens to me, nothing happens to my money.
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  I can figure out some resources from there.
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  If something happens where I get sick, I didn't amass all this wealth so that I could spend it
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  on health care bills or co pays or prescription drugs.
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  No.
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  If something happens to me, my money is safe and protected, and I'm gonna get a check every
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  month.
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  $10, $20,000 a month that I don't have to claim this income.
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  So now we put a blocker.
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  We want to build an amazing an amazing castle of wealth.
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  This is our kingdom here, so we wanna be able to not only build this kingdom, but protect it
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  and put the necessary pieces around it.
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  Well, thank you so much, Vernika Murphy from the multimillionaire consulting group.
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  Now I know why you named your company that because y'all deal in dollars.
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  No sense.
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  Okay.
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  Alright.
• 23:14
  Thanks for listening to the Small Biz Chat podcast with Melinda Emerson.
• 23:18
  Subscribe to this podcast wherever you listen to podcasts, and join us next Wednesday for
• 23:24
  more fantastic information and interviews.
• 23:26
  You can find more sources and small business success strategies by visiting Melinda's
• 23:31
  website, succeed as your own boss.com.
• 23:35
  Thanks again for listening, and we'll see you next week.