Latest / Wealth On Main Street / 264: Buy Term and Invest the Difference of IBC

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264: Buy Term and Invest the Difference of IBC · Wealth On Main Street

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Speaker A: Foreign welcome to wealth on Main street, where conversations about growing your wealth are fun and entertaining. Wealth isn't just about money. It's the skills and the knowledge that we develop to pass on to future generations. Tune in each week to to grow your mindset and your net worth at the same time.
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Speaker B: Great question that I got asked. I was going to say this to you before you said, hey, let's record this because we got a jam on.
0:42
Speaker A: This we need to record. Oh my God, hit the record button.
0:45
Speaker B: Podcasts so a question I got asked when I was finally I was going to say that I was able to make scheduling work and I was interviewed on much like you've been already. And our listeners should definitely check this out. The Nelson Ash Institute the Infinite Banking Initiative podcast so Rich has already been interviewed. I just got interviewed today and one of the questions that Lee, one of the co hosts, David Stern's daughter, asked me was when you encounter somebody saying I've listened to financial entertainers, financial personalities out there and they're talking about buy term life insurance, invest the difference, or putting money into dividend paying whole life insurance is not as effective as putting it into the stock market or some variation of that. How do you respond to that? So first of all, I thought that was a really good question to ask given the audience of the podcast and I had expressed my response is the same. So if a person were to express that, then I would just ask a follow up question. So take a moment, just take all the time you need and help me to see how Buy Term and Invest the Difference puts you in a position of controlling how you finance the things that you need throughout your lifetime. In fact, just let me know what does Buy Term and Invest the Difference have to do with controlling how you finance the things in your life? Knowing that there's a very clear distinction there because it has nothing to do with controlling how you finance the things that you need. And if you genuinely need, if there's merit for temporary life insurance coverage and you have a desire to invest money in mutual funds or the stock market, then you should go and do that. It doesn't take away the truth, the fundamental truth that someone must control the banking function as it relates to your needs, how much of that function are you presently in control of? And most often, of course, the answer is none. And so let's set aside something that you already desire to do with your money and let's talk about who's controlling the function of banking as it relates to your needs. And and let's Start putting you in a position of control over how you finance the things that you need. And ultimately the conversation goes to. I've heard about recapturing interest, the interest that I pay to banks or to finance companies. I just asked all of our teammates, Rich on Tuesday, can you tell me in two words or less, can you tell me what recapturing the interest you would otherwise pay to someone else's bank is just two words or less. Well, we got feedback from like 30 plus teammates that were on the zoom. And then I said, can I offer you what my insight is? And everybody's like, yeah, yeah, for sure. I said, pay premium.
3:45
Speaker A: You mentioned page, you know, 58 of Nelson's book. For those of you that don't have, please get a copy of Nelson's book because it's epic. On page 58, there's a footnote. This is often the most misunderstood. I don't know, I want to use the word confusing, but it's, it's just not well understood. As people go through the book, they think they get it, but they don't often get it and they have to be brought back to it frequently. In fact, it even happens with a lot of advisors. Most financial advisors who, who are not authorized practitioners and they claim air quotes, claim or think that they're teaching infinite banking concept, often do not understand this. And that's not a slight against them. It's. It can be a little bit unclear to get it. But the footnotes reads, actually this quote, unquote, interest is not really interest. It is additional premium or capital that has been paid into a policy that equals the interest that was being paid to a finance company. In other words, what was the amount of money and interest that was going to a third party? They were getting all the money before because we're now redirecting that and paying a premium. And that's increasing the growth of our system. That is the reason it is adding to the cost basis of the policy. If you have trouble understanding this, go back to the grocery store on page 15. If you still don't understand, then contact me now. Nelson, of course, is no longer with us. We miss him daily. But what that really means is contact an authorized practitioner to get them to review and explain this to you. If you don't really understand. Now, Nelson in practice and talking to people, he would actually say, if you still don't understand, then you're probably unteachable and this is probably not for you. And he does actually indicate that there's several points in his book where he says if you don't get this, go back to this page. And if you don't get this, go back to this page. And if you don't get this, then probability is this is not for you. So he really has it right in the book. And so I'm glad that you're going to be talking about that in simplicity at the think tank. And further to that, you also just indicated that we talked about the Infinite Banking initiative. Now we obviously want people listening our podcast. So thank you for being here. But I'm really, really excited about the Infinite Banking Initiative. They've released a number of episodes. I, I was able to be actually the first recording, though I wasn't the first one released. And we had a lot of fun on that discussion. And this is, you know, really centering around different practitioners, sharing their journey and their story of learning about Nelson's concept, embracing it, you know, their trials and tribulations of, of entering the world, of trying to teach and coach and mentor other people, their client base on the Infinite Banking concept, how they've seen it shift and change over the years. And it's phenomenal because it's, it's exactly what the general public is looking for. And the Infinite Banking Initiative, a great number one great name. I, I may have known who suggested the name. His name was Richard. So I'm really glad they accepted that suggestion. Great initiative and they called that the name of the show, which is awesome. And in fact they already had some ip, some, some logos and stuff that we had pre const from the past where they had the Infinite Banking Institute, which was what it was called prior to it being the Nelson Nash Institute. So they already had some of that in place, which kind of made a lot of sense. But if you haven't subscribed, make sure you subscribe to their, their channel on whatever podcast player that you use or you can also find it on their YouTube channel. Going to the Nelson Nash Institute YouTube channel, which we certainly recommend. Amazing content that's out there. We're actually going to be talking about that. David Stearns has some incredible stats. He's going to be sharing about how their YouTube program has been growing. But also he's going to be sharing an incredible timeline. Jay, when you see it, you're going to love it. He's going to show this incredible timeline of the phases of Infinite Banking, starting right away from Nelson's first policy at age 14. And he's got this timeline of events again. I may have suggested this would be a good idea for him. But the way he built the slides, I got to see him the other day, they look awesome. And it really just shows this progression and growth over Nelson's lifespan. What he went through, the changes when eventually Infinite Banking came into practice and when the book was launched, he's got the different edition covers of the book there. And then all the new things that the Nelson Nash Institute and the Council, which I have a pleasure to serve on the Council, you are an advisor to the council for the Nelson Nash Institute. Amazing initiatives that we're building that are going to help expand Nelson's message more and more and more out into the marketplace as we seek to raise the level to 10%. And so for those of you that don't know, building the 10% is really this concept, this idea created by Carlos Lara, that if we can get 10% of the financial professionals in the marketplace teaching understanding and then teaching Nelson's concept to their client base, we can reach 10% of the population. And so in North America, that's a pretty big goal. It's a pretty big ask. But that is the mission, what we're trying to accomplish with the Nelson Nash Institute, and hopefully our program here at wealth on Main street, we're supporting that initiative by sharing these great, great ideas, concepts, and furthering Nelson's teaching with everyone listening today.
8:54
Speaker B: Yeah. And, you know, serving. Serving North Americans in the implementation of this is. I love the momentum. I. I love what I see, you know, happening and how people are. Because what. What is going on now is people are. When we ask them, like, how long have you known about us and what piece of content triggered you wanting to connect and speak to someone on our team now? And the response is frequently, you know, we've been stalking you guys on the podcast for, like, the past few months. And, you know, the content. Just today, just this morning, as a matter of fact, feedback that was delivered. A physician, a doctor tuned in to some content. And then when the question was asked, you know, why now? Like, why did you create a time now? He said his words verbatim. The advisor who is serving him now shared this with me this morning. This gentleman said, verbatim, I just love the way that these guys think and the way that they communicate in a way that I can understand. And that's what we try to do with every episode that we have and with everything that we express around this concept. I think we've really taken it to a new chapter of how we've embraced that the infinite banking concept is meant to be ridiculously simple. It's not meant to be sensationalized. It's very, very simple. And if you think about this, the notion that. And one of our colleagues shout out to Ryan Griggs, one of our colleagues, just an amazing guy. I think he's just such a brilliant thinker. And he had shared a Facebook post today where he was talking about a client who had got rid of the conventional bank, no longer has a mortgage.
10:45
Speaker A: This client, he paid cash for a property or.
10:48
Speaker B: Sorry, yeah, pardon me.
10:49
Speaker A: He had a policy loan. So, yeah, yeah, yeah, he bought a policy loan, but then basically paid cash for the property. So there's no one else on title other than himself. No debt on that property directly, 100%.
10:59
Speaker B: And Ryan brought back the importance of recognizing the human condition. And Nelson said it best that the policy owner's behavior is far more critical than the behavior of the insurance company. And in the industry, what happens is there's a lot of emphasis on the numbers. But if you truly implement this concept, then it is the policy. The numbers follow the policyholder's behavior, not the other way around. And I communicated that back to Ryan to say, we need to see and hear more examples like this, because this is everything that we're trying to impart. The autonomy, the control, the freedom from, you know, financial servitude that people find themselves in right now. And recognizing the human condition, that your behavior is far more critical. And it's a great, great post that.
11:52
Speaker A: You mentioned that, because I'll read something to you. An email that I received very recently, and this is so cool, this gentleman had the pleasure to meet him. He was actually recommended from one of our colleagues in the States to connect with me and had phenomenal conversation. Here's a gentleman who truly has conquered, in my opinion, Parkinson's Law. And through our conversation, indicating some of the things that he was already doing through his savings process, he was meticulous. He was consistent. He usually gets a pay raise roughly every year. He automatically already puts that pay raise aside into a separate account to increase his savings bucket like that right there. That's Parkinson's Law. So there was several points in our conversation where he identified areas where Parkinson's Law normally impacts people. And he'd already solved it. He didn't even realize that he'd solved it. So bringing him back to the connection point in Nelson's book was really helpful, and I sent him a number of our resources. So one of the emails I send out talks about the power of child policies for people. And in the example I show, it's maybe about an 18 minute video where I walk through actually my own kids policies. I take it out over a lifespan and I talk about the later stages. You know, where my wife and I are in our 70s and our kids are, you know, you know, they're going to be, I don't know, in their 60s or something or. No, sorry, not six. They're going to be like in their late 40s, whatever. Yeah, I'm talking about, okay, how can we utilize those policies? And at some point there's a death benefit from Richard and that's going to come back and it's going to flow in and have a place to replace policy loans that are outstanding on my kids policies. So just taking that experience and in a 20 minute review, basically I can walk through the thinking process. So I got this email from him. I'll read this out to you for everybody here. Hey Richard. It's incredible how much I've learned since being introduced to you. One of the most profound insights has been redefining my understanding of wealth. I now see that true wealth isn't just about accumulation. It's about mindset knowledge and the ability to pass those on to future generations. The real key to sustaining family wealth across multiple generations lies in equipping one with the skills, the wisdom and the principles to build upon and preserve it. Thank you for sharing the videos. I'll have my daughters go through them and I'm implementing a family coaching session to ensure this knowledge is effectively passed down. Love it. His, his daughters, I mean his, I think his youngest is 6 and the oldest is like 12 and they have one on the way. So he's already, he's going to show the video that I created for adults to his kids and have this conversation. He only read Nelson's book like, like three, four weeks ago and he's going ahead and moving forward with the process and he's just going to be a perfect example of exactly the right individual we're looking for that demonstrates the mindsets, the family values, the thinking, the preparedness. He's an active reader, he loves to learn. He's actually an engineer, coincidentally. And as an engineer, which love and respect, I didn't get all of the typical engineering questions. There was no questions about this spreadsheet or that or the math. It was all very focused decision making and impact and it was just a so much fun to be a part of. So shout out to him for his great work because he did all the proactive steps in advance before we had that initial meeting. And he's positioning Himself and his family through this model. Right now, again, 12 year old, 6 year old and about to have a newborn. Just imagine that, that, that phase of life accumulating throughout, throughout him and being able to start implementing these conversations immediately. Such a tremendous thing. So getting an email like this, by the way, for our clients, if you ever feel so inclined to send us an email like this, I can guarantee you your advisor is more than happy to receive those. Those will brighten up anyone's day. And we do get those, you know, probably once or twice a month I get an email like that and those are just incredible, you know, a, that people love and care about us the way that we love and care about them. But to know that we're making an impact, there's nothing greater than that feeling.
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Speaker B: I agree wholeheartedly. It reminds us of our why. And yeah, there's no. Wow, yeah, that was incredible message and really well put on behalf of this person who's going to become a client. And the family banking approach, the system, everything from how to frame it up, how to host meetings, how to instill this in the family. We, in the second quarter of this year, we're going to be launching that where we're hosting, whether it's online, in person, combination of both, and hosting sessions where existing clients come in and we can help coach them through these approaches. And it'll all be recorded, it'll all be uploaded into the client portal, it'll all be part of what we do. And when I was at. I'll share this with you because this is so powerful. When I was at one of the locations of the five cities that we hosted our Infinite Banking event, one of the questions that was posed at the very beginning, I said, think of the number one most important thing that you either want to learn or take away from your time here today. Write it down, our teammates will collect it. And I reviewed and scanned each and every one of these responses and made sure that what I delivered during that morning session aligned with what the people said. Hey look, this is my number one thing that I want to learn or take away. And of course there were some themes in there, which is, which is great, but this also informs what we do in the future and going forward. And so like Richard said, we love to hear what experiences you're having as clients and we also love to hear what is the number one thing you want to learn and take away so that we can either point you in the direction of a resource that's already been recorded, that's already been done or you've just given us a great idea that's going to become a great solution for everybody in the client community. And we do this even in the Facebook community where somebody says, hey, I have a question about this. And then we start to engage and it's like, you know what, Rich, we should do a podcast episode on this. And so that's where all these great ideas come from, is from the very people that we most love to serve.
18:31
Speaker A: Speaking of the people we most love to serve, we've had so many incredible individuals from our client community actually come on and join us on the podcast and share their story and be willing to be a little bit vulnerable and open to sharing and being part of our experience. We absolutely love those. So if you're listening in and you're already a part of our client community and you want to share your story, you want to have an opportunity to, to do that and impact someone, please reach out and let us know. We would love to feature on the program and I just want to give a shout out to one of those individuals, Scott Butt, who was on the program a while back. And Scott, I'm sure you're probably listening, so really appreciate you. And he's actually writing a book, a little bit about his story and some of the things that he's done around really getting his health back on track. And a lot of that inspired by certain things, wanted to do financially, which is so incredible. And so I had the pleasure to have a really fun conversation with Scott. I was driving to Vancouver for Strategic coach and we were able to connect and line up and we probably had, I don't know, maybe 45 minutes or so on the phone and I walked him through some things around the self publishing process, which we're becoming more and more familiar with. Not expert level by any shape or means, but happy to provide the insights that we did have. And I also gave him a shout out to Feng Shua, who's an amazing client of mine who's also been on our show, who's helped self publish a number of books himself and helped a number of people do that. So really, really incredible. Like how the conversations go beyond, of course, Infinite Banking. They touch many, many aspects of our lives and there's so many opportunities there. And it makes me think about some of our upcoming books that we have, which I'm really excited about. We've got Dan Allen co writing an amazing book called Growing your own capital, control how you finance the operation, create the ultimate line of credit and keep the farm in the family. I'm really excited about that book. It's going to be fantastic. That'll be coming out I think in the next. Well when by the time this airs it's probably going to be a month or so out, but should be releasing that I believe in April. I know pre sales are up on Amazon for that already growing your own capital, featuring of course Dan Allen on our team and then of course Jason. Maybe you want to make a little bit of a mention about the upcoming Diapers to Dollars book.
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Speaker B: Yeah, thank you for asking. So my son Jackson and my nephew Evan, two 16 year old guys who have this is all they've known. The infinite Banking concept is all that they've known. And they have co authored a book titled Diapers to A Teen's Perspective on the Infinite Banking Concept and How to Build Wealth Before Becoming an Adult. And I couldn't be any more excited for them and that book. The pre launch details will be shared at the annual Infinite Banking Think Tank conference next week, which today's February 28th, so first week of March. And you'll be able to get your hands on a copy of that book. It's going to be incredible. It'll be an easy read, much like what we do with all of our quarterly books. You should be able to get through them in about an hour to 90 minutes tops. And so that's really exciting news. And they're going to be doing a talk at the think tank for their second appearance, second year in a row and they've got a lot of insight to share and they're going to be talking about, you know, debunking some of the myths that adults have around kids and their interpretation of money. A very simple three step guide to introducing this to teenagers and to help them embrace this concept. And then they're going to walk through a number of things that are very applicable to the practitioner community that we think they're going to find really helpful. But two 16 year olds who are going to stand on a stage again and walk through this and it just aligns perfectly with doing Simple Better, which.
22:16
Speaker A: Is in front of almost 250 people, which I can think back to the first time I stood up in front of 250 people. And you know, there's some, it's not necessarily easy unless you've got some practice there. I mean, I don't think about it a lot these days anymore, but certainly it doesn't start there. It's like anything, you build practice. So anyone who's ever done public speaking before, just consider what that means to be at that age and to do that, it's not only is that such an incredible growth opportunity, but at that level, at their current stage, to be able to level up as they go and develop practice on those things is going to be really tremendous. What's in front of them in their future.
22:57
Speaker B: I agree. And we will definitely have them on the show and interview them. It's going to be an exciting time for them. And what I had talked to with them yesterday about is think into your bigger future. When you start a family or if you have a desire to become an authorized Infinite Banking practitioner, just look into your bigger future. This is a tool, a valuable resource that you will be able to provide the rest of your lifetime. And to be able to share that with people, to say, hey, you know what, I can appreciate that you're curious how to share this with your 16 year old. Here's a book that I wrote when I was 16. Hopefully this gives you some helpful insight as to how you can do that. And they, you could just see them thinking, oh yeah, like we didn't think into that bigger future and we didn't process it that way. So yeah, just super proud of them. And those two will never see a conventional bank for other, anything other than the convenience of debit. And so what an incredible gift that they have and they want to share it with other people. So I'm excited for the release.
24:14
Speaker A: Amazing. Well, for those of you, of course, watching on YouTube, you'll find that an amazing video just popped up that says, oh my God, I'm incredible information, you should watch me. So go ahead and click that and do what it says and watch that great content for everyone else on audio. We appreciate you so much. And stay tuned until next week where we continue to have a ton of fun unpacking these amazing conversations about Infinite Banking.
24:35
Speaker B: Love it.