The Money Advantage Podcast

If you’ve paid any attention to the news recently, then you’ve probably heard about what’s happening with the Silicon Valley Bank. The news isn't good, and it's probably raising some questions. We’re here to unpack what you might be thinking about. Like, are we entering a banking crisis, and what does this mean for the greater economy? How does Infinite Banking compare? https://www.youtube.com/watch?v=kqOWPOdD8eY In this podcast, we'll examine the factors that led to the Silicon Valley Bank collapse, and how Infinite Banking can be a solution. Join us for a discussion of the state of banking, and how you can best prepare to weather any economic storm. Is This Normal?The Timeline of the Silicon Valley BankHow Do Banks Get Behind? Reserve Requirements for Banks and Insurance CompaniesInsurance Product vs. CashCould Life Insurance Companies Be Safer Than Banks? Bank-Owned Life InsuranceResources for Bank Failure InformationIs There a Banking Crisis?Book A Strategy Call Is This Normal? We want to start this conversation by sharing that boom and bust cycles are a natural part of any market when the free marketplace is working. This means there will be inevitable highs and lows for everything. Those who are savvy can learn to time the markets by paying attention, although no one does this perfectly 100 percent of the time.  What sets people apart is the assets they can control with certainty. And one of the many positives of Infinite Banking is that life insurance is not correlated to the stock market. So despite what’s happening in the economy, your cash value is safe and certain. This is the kind of protection that is not even guaranteed when all of your money is in the bank. It’s critical to build your foundation on something strong and within your control.  The Timeline of the Silicon Valley Bank To get a good understanding of what’s happening with the Silicon Valley Bank, it’s worth examining the timeline. At the time of this crash, Silicon Valley Bank was the 16th largest bank in the country and had been just 40 years old. The crash occurred because of large withdrawal attempts and is the largest crash since 2008.  On January 1st of this year, the bank had $91 billion of held fixed income securities or held maturities. They also had $200 billion in assets, mostly Venture Capital and tech assets. Out of the $91 billion, the bank’s unrealized loss was going to $15 billion if people pulled out of their maturities due to a need for increased liquidity. They knew they’d be in trouble for the reserve requirements.  On March 8th, the bank announced that they needed to shore up their balance sheet and raise $2 billion in capital. They proposed a sale of their bond portfolio at a $1.8 billion loss, but there were no interested buyers.  On March 9th, customers began to withdraw due to impending trouble, and the bank’s stock fell 60%. On March 10th, the Silicon Valley Bank failed to meet its reserve requirements, so the FDIC stepped in and seized control. The fear, it seems, stems from the reality that this was a huge bank that seemed like it could never fail. No one expected it to, so when it did, people got extremely nervous about their banks and their ability to meet their needs as well.  The problem is that when people are fearful and lose faith in the banks all at once; it creates a vicious cycle. Because the more people that pull their money out at once, the harder it is for banks to meet their reserve requirements and other obligations.  As Bruce points out in the show, this is also the first time such a large bank failure has occurred in the age of social media, and so the information is more readily accessible. While it’s good to be informed, this can also lead to a lot of fear because things spread like wildfire on social media.  How Do Banks Get Behind?  [8:50] “What happens here is we’ve been going from a very low interest rate, almost no interest rate, environment, to a relatively—what we think is high but is more normal—interest rate environment.”  What happened with the Silicon Valley Bank, specifically, had to do with rising interest rates. Once the interest rates rose, many people decided they needed liquidity and pulled money out of securities, or they pulled money out of the banks completely. This means that banks would have to sell securities at a loss if depositors decide they want their money back early. Another reason banks can get behind is if they invest heavily in startups and risky endeavors, and aren’t doing their due diligence. Silicon Valley Bank had a large portion of assets tied up in Venture Capital and startup investments. And while many VC investors can be incredibly successful, it’s by thoroughly vetting those investments and their viability. Of course, we can’t speak to SVB’s vetting process, and even the best due diligence can sometimes have negative results.  That being said, if investments don’t pan out, this can also cause banks to lose their reserves if they get hit over and over again. Reserve Requirements for Banks and Insurance Companies Generally, banks are only required to hold about 10% of reserves against their checking and savings deposits. This means that if they have $100,000 worth of deposits into checking and savings accounts, they’re only legally required to have $10,000 of that money in reserves at any given point. The rest they can use to loan money, invest, etc.  While this is fine for day-to-day operations, the trouble occurs when many people want to withdraw large sums all at once. This can happen due to a recession, or because people are anticipating a bank failure. The latter, however, tends to be the thing that speeds bank failure along. It becomes a race to see who can get their money back first, and completely.  Insurance Product vs. Cash [36:51] “Contrast this to life insurance companies. Every time premiums come in, they’re actually taking that premium and putting it into investments. But unlike banks, they actually don’t have runs on them like a bank would have them, because these deposits or premium payments are actually for a product. So you’re buying life insurance.” You can access cash value, of course, but insurance companies don’t run into issues of too much coming out at once because they have full reserves. They have to, in order to pay death claims at any time. (Insurance companies have a provision that allows them to delay funds up to 6 months if too much is flowing out, but this is incredibly rare.) The reserve requirement for insurance companies is about 8-12 percent of anticipated claims for the year. And yet, most insurance companies go above and beyond this requirement.  [37:46] “That reserve requirement with the top 10 mutual companies is about 7 percent higher than what they believe their mortality expenses and other expenses are going to be for any one given year.”  Some insurance companies even have 14% above the reserve requirement for their expenses. Insurance companies have to meet all of their financial obligations because they’re providing a product, so it’s critical that they keep their reserves well-stocked.  Could Life Insurance Companies Be Safer Than Banks?  [41:05] “I want to pose that we’re not saying that this is the case, but could life insurance companies be safer than banks? Here’s something that’s really interesting: bank failure is more common than life insurance company insolvency.” While we all require banking to some degree—checking accounts are necessary for debit cards and spending money, and even paying premiums—this does compel you to consider where YOUR cash reserves are safest. In addition to your personal monthly cash flow, it’s probably a good idea to have some money saved with the bank, for quick access without much fuss.  However, if you want to stockpile large sums of capital for your future use, there are many benefits to controlling your own banking function. In addition to having very safe and secure assets until you’re ready for them, you also get to grow your cash value at a rate that’s typically better than a bank savings account. It’s also a good long-term product that can last your family for generations with the right family mindset. And of course, there’s the option to leverage your cash value for opportunities without sacrificing any compounding ability.  These are all compelling reasons to have an Infinite Banking policy as your financial foundation, as a means of supporting any banking you do with an actual Bank.  Bank-Owned Life Insurance In a conversation about banks and life insurance, it’s worth mentioning that most banks own life insurance. This is insurance that the banks purchase on their key employees. They’re allowed to do this because they have an insurable interest in their key employees—if they were to die, it would be a loss to the company, and it could be costly to train a replacement.  Bank-owned life insurance is tier-one capital for banks because it’s safe and it’s liquid. Many banks that have BOLI have billions of dollars worth of life insurance.  [53:10] “What I think is fascinating is that the banking system uses permanent life insurance with the cash value for the purpose of fulfilling their tier one capital asset reserve requirements. Meaning that it’s a safe and stable asset that they rely on using because they know that there are guarantees built into it. And I think that really says something to have one industry using another industry’s product to make themselves more stable.”  Resources for Bank Failure Information Want to know more about what banks have failed, which banks are in good standing, and other important information? Check out this list of resources for your personal research: List of bank failures List of insurance company insolvencies Companies that rate financial institutions: A.M. Best

In this podcast, they discuss the concept of 'don't steal the peas' from the book 'Becoming Your Own Banker'. They explore the importance of imagination in Infinite Banking and how it can yield new results. The hosts also talk about the power of individuality in financial strategies, understanding fixed relationships, reaching the break-even point in a business, honesty in business, and building a life and business you love.

Are you looking for good investment opportunities to put your capital to work? Have you considered franchising as an opportunity for business ownership without starting a company from scratch?  Today, we're talking with Jon Ostenson, a top 1% Franchise Consultant, former Inc. 500 Franchise President and Multi-Brand Franchisee, and author of "Non-Food Franchising." So if you want to learn about the non-food franchising business model, the pros and cons, and why this might be a good fit if you're already in real estate...tune in now! https://www.youtube.com/watch?v=WEMh7BSNPl0 Finding Your Non-Food NicheIs Franchising Right for You?Franchise Ownership StylesHow to Work with Jon OstensonAbout Jon OstensonBook A Strategy Call Finding Your Non-Food Niche Owning a business franchise has been a time-tested way to get into business ownership with a tried-and-true business model. Many entrepreneurs like it for the relatively low barrier to entry. You don’t have to pioneer a new idea, you just have to invest in an existing one. It’s also a way to bring much-needed business to your community.  While many people think of restaurant chains when they think of franchises, there’s so much more to franchising than food. And that’s where Jon Ostenson comes in. He has ample experience in the franchising-industry and sees non-food franchises as a particularly shrewd investment because they’re often necessities. Pet supply stores, auto shops, and pharmacies are just a few examples of essential businesses with franchising potential.  If you think you want to break into franchising, Jon’s advice is to think about the gaps in your community and what people need—not just what they want. Because if a recession hits, businesses that are “non-negotiable” are going to weather the storm. [7:59] “What I go back to is, what are you personally going to continue to spend on regardless of the economy? It’s the things you care about—your kids, your pets, your aging parents, your home, and your health. And so businesses that operate in these types of industries—again they’re more needs-based in a lot of cases, maybe a little less discretionary—those are the ones that are getting a lot of attention.” Is Franchising Right for You? One benefit of franchising that Jon shares is that it’s a way to increase your Net Worth through income rather than appreciation. If you’ve got the capital to invest and you want something that’s already got a blueprint, franchising can be great for you. Especially once your location is up and running, you don’t have to have constant involvement.  In other words, franchising can be great for the investor who’s “been there, done that,” and is ready to take a step back from full-time business operations.  On the other hand, if you’re wanting a business that you can leave your mark on, franchising might not be the way to start. Despite owning your particular location, you’ve got to operate your business within company parameters. You might have a say in some factors of the business, but you won’t be able to dictate anything that messes with the franchise's “brand.” After all, one of the major benefits of franchising is that you get to capitalize on brand recognition immediately. You’ve got a built-in customer base, and those customers have certain expectations of the brand.  If you really want to have a hand in the business down to the last detail, you might find more fulfillment in starting your own business. That way, you have complete creative control over the operations.  Franchise Ownership Styles While owning a franchise business can be a bit more hands-off than starting your own, it’s not a completely passive endeavor. There’s absolutely some time trade-off when you own any business, including an existing one. However, this obligation can be greater or lesser depending on your own personal management style. Let’s go over the three ownership styles Jon has personally witnessed.  First is the owner-operator. This is usually the person who wants to start a business but doesn’t need full creative control. However, they still want to have some control, so they are involved in the management of the store, at least initially. Most owner-operators have a goal of putting the store under someone else’s management eventually, so they can buy more franchises.  Then there’s the semi-passive or semi-absentee owner. Jon estimated about two-thirds of his clients opt for this ownership style. This is where, from the beginning, the franchise owner puts strong management in place to run all day-to-day operations. There’s still some level of owner involvement, but it’s not constant.  Finally, there is a truly passive investing model. Though Jon only knows of four businesses/brands that truly offer the option to operate under this model. This passive model is when the franchisor will run the business for you. You fund the business, but the franchisor operates it as though it’s a corporate location.  [20:30] “I’d love to see more brands offer that, but only if they’ve got the infrastructure in place to be able to support that.” How to Work with Jon Ostenson If you’re interested in franchising, Jon Ostenson can help. His company, FranBridge Consulting, helps entrepreneurs and investors connect with non-food franchising opportunities. Before you connect, Jon advises doing some research and understanding the market as much as you can so you have an idea of what you could do.  If you’re ready to start the process and connect with FranBridge to see if franchising is right for you, you can request a no-obligation consultation. And when you sign up for the FranBridge newsletter, you can get a free digital copy of Jon’s book, Non-Food Franchising. About Jon Ostenson Jon is a top 1% national franchise broker, investor, author, and international speaker specializing in the area he has coined “Non-Food Franchising.” Having served as the President of an Inc. 500 franchise system and now as a multi-brand franchisee himself, Jon is uniquely positioned to educate others on franchising and franchise selection.  Jon serves as the CEO of FranBridge Consulting and has helped thousands of entrepreneurs and investors explore business ownership and investment opportunities.  Jon is the author of the book "Non-Food Franchising" and is a frequent contributor and thought leader for publications on the topic of franchising and franchise investments. Prior to FranBridge, Jon was the President of ShelfGenie, a national franchise system with 200+ locations. Book A Strategy Call Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!  Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.

Learn about the concept of Infinite Banking and how it can help you make better decisions about your wealth. The podcast explores the original text by Nelson Nash, the father of Infinite Banking, and discusses the power of thinking differently about financing. It emphasizes the importance of taking control of the banking function in your life and understanding the flow of money. Discover how storing capital in life insurance policies can provide access to cash value for opportunities, regardless of interest rates.

Concerned about taxes in the future? Taxes are a huge eroder of wealth. While you do not have control over tax rates, you can strategically position yourself to maintain control of as much of your money as possible. Taxes are at a historic low, so it is time to learn how to pay less tax legally. https://www.youtube.com/watch?v=SB4IoCq9Y-8 So, if you want to find out how to protect your wealth from likely tax rate hikes and minimize your tax rate ... tune in now! *Disclaimer: This is not tax advice. Table of contentsTaxes Are Paid on the MarginReducing Your Taxable IncomeActive Tax PlanningWhat is Tax Deferral?Are There Tax “Loopholes”? Book A Strategy Call Taxes Are Paid on the Margin A common misconception about taxation is that your tax bracket is the percentage of tax you pay for your entire ordinary income. In reality, everyone is taxed the same way, on the same dollars. Income is taxed on the margin. So for married couples, everyone’s first $20,550 is taxed the same exact way, at 10%. The next margin is taxed at 12%. So everyone’s income from $20,551 to $83,000 is taxed at 12%. Any income you make past $83k is taxed at the next bracket, which is 22%. The highest bracket is 37%.  You may be able to reduce your taxable income through deductions, and that comes off the top. So if you make $100,000 in a year, only 10,550 of those dollars are being taxed at 22%. If you can reduce your taxable income by $10,000 then only $550 gets taxed at 22%.  In other words, just because you’re in the 22% tax bracket does not mean that 22% of your income is going to taxes. It represents which margin you’re in. This also means that everyone is being taxed the same on the same dollars. If you reduce your taxable income, you’re not being taxed unfairly because you’re still being taxed in the same way as everyone else.  Source: Truth Concepts It’s also important to note that the above pertains to ordinary income, which is W-2 income and many investments. Capital gains—income from the sale of investments—have a different tax structure. Reducing Your Taxable Income [7:13] “Your taxable income is all your [ordinary income], minus your deductions, which is either because you itemize… or the standard deduction. And then if you own a business, you also get what’s called a qualified business deduction. And then you come up with the taxable income after that.”  The standard deduction is $12,950 if you’re single, and $25,900 if you’re married and filing jointly. If your own a business it is worth itemizing your expenses and seeing if they exceed the standard deduction, to get the most benefit with your taxable income. It’s also wise to be mindful of how you access different accounts that you own. Many people love their tax-deferred 401k because they can defer paying taxes on their contributions. They see this as a tax credit when really it just means you don’t have to pay taxes yet. But if you need access to those dollars, you can bet you’ll be paying income tax. That’s why it’s powerful to have other sources of liquid cash that won’t increase your taxable income. A policy loan from your whole life insurance or a Roth IRA, for example. Active Tax Planning By 2026, the tax brackets will shift in a way that may necessitate some active tax planning. This means working with your trusted tax advisor to come up with a plan. The reason is that in 2026, the 22% margin will return to 25%. The top threshold of the margin is also decreasing from $178,000 to $153,000. What this means is that if your income is around $153,000 to $178,000, you could make less money in 2026 and still be in a higher tax bracket. This also means that any money you make from $83,550 to $153,000 will be taxed at 25% instead of 22%.  If you are close to that upper threshold, work with a trusted tax advisor to reduce your taxable income. And if you have tax-deferred assets, you think you’ll want to access or liquidate; doing it now could save you money. You’ll still have to pay taxes, but you’ll pay them at a more favorable rate now than you will later.  Even if you think you may leave your money in tax-deferred accounts for estate planning purposes, it may not be exactly what you think. Under current tax law, assets passed to the next generation must be withdrawn over 10 years, not a lifetime. This might bump heirs into higher tax brackets, during what could be their peak earning years is they are in their 30s and 40s.  What is Tax Deferral? [19:53] “Tax deferral sounds fancy, right? It sounds like I’m avoiding a tax that I should be paying. It kind of sounds like grace, like I deserve to pay this but somehow I’m getting a free ride or a pass. Deferral, if we really just break down the word, means to postpone. And it’s better and more logical to think about taxes from that perspective. If I defer a tax, that doesn’t mean I’m not paying it, or I’m getting a free pass. It literally means I’m postponing it. Which means on that portion of income I’m not paying today, but I will pay in the future.” The unfortunate risk of tax deferral is that it’s a guessing game. Not only can you not know what the tax rates will be when you need or want that money, but you also can’t know what your income will be. Even if the tax rates don’t increase, your income could be much larger and accessing that money if you need it could push you over a threshold.  As we mentioned, you might choose to pay taxes now in favor of paying more later. Sometimes paying more tax can be beneficial in the long run. It all depends on your personal economy, your morals, and the purpose you have for your money. Therefore, it’s important to work with a specialist who can help you implement the right strategies for you. Whole life insurance cash value is tax-deferred, however, you have the option to access it tax-free through policy loans. This is why we call it tax-advantaged—because you have the option to experience your cash value as if it were tax-free, however, it is a tax-deferred product.  Are There Tax “Loopholes”?  One way to decrease your taxable income is by doing things that the government wants you to do. These are often, incorrectly, referred to as tax “loopholes.” However, the term loophole implies that there is something sneaky about these practices. In reality, they are tax incentives purposely written into the tax code because the government wants to encourage certain behaviors.  In exchange for engaging in practices or behaviors that the government wants you to do, you get to benefit from tax deductions. Through these strategies, you can reduce your taxable income significantly. For example, there’s an interest deduction on mortgages because the government wants to encourage homeownership.  For business owners, there are usually tax incentives for providing housing. The more landlords can provide housing, the less the government has to do it itself. There are many other investments that the government incentivizes through deductions.  Book A Strategy Call Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!  Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster. That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth… plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.

In this podcast, the hosts discuss the implications of rising interest rates on Infinite Banking policies. They explore the difference between direct and non-direct means of paying dividends and highlight the importance of considering all financial aspects beyond whole life insurance. The speakers also emphasize the importance of discipline, confidence, and policy design in achieving financial security through the concept of infinite banking. Additionally, they discuss the importance of buying quality products and being in control of financial decisions, as well as the power of delayed gratification and surrounding oneself with uplifting resources. Overall, this podcast provides valuable insights for understanding the impact of interest rates on Infinite Banking strategies.

Money is often confused, misunderstood, and classified as part of our basic, natural, carnal human nature. But money is spiritual. Understanding, earning, using, managing, and growing money is a part of our lives that is deeply spiritual. Rabbi Lapin knows this and shares his wisdom about money far and wide. https://www.youtube.com/watch?v=kdDMBgWHwkg For more than forty years, Rabbi Daniel Lapin has taught audiences around the world that wealth creation isn’t merely practical, but also moral. His message reframes the way we view money, showing that financial success reflects service, trust, and contribution rather than greed or selfishness. By recognizing that money is spiritual, he encourages people to synchronize their values with their actions, so that prosperity becomes a genuine extension of their overall purpose. Today, Rabbi Daniel Lapin explains why and how you can improve your finances with this one simple mindset shift. Tune in now to join the conversation! Table of contentsOn Redistributing WealthMoney Is Spiritual: The Spiritual Attributes of MoneyThe Exception, Not the RuleWhen Should You Teach Children About Money?How Do You Price Your Services?About Rabbi LapinBook A Strategy Call [3:45] “You’re only a slave to money when you don’t have the money.” On Redistributing Wealth [6:48] “The one problem is that we don’t have a successful model anywhere in history to go on. You know, when has this approach to economics actually worked? When and where? Oh, nowhere at no time? Well then, I recommend you be extremely cautious about applying something to the lives of three hundred million people that hasn’t been successfully done anywhere.  That’s one huge problem. The other huge problem is that redistribution or equality is just a really nice word for a really ugly idea, which is taking money away from people who own it. And that’s really a fundamental value of all morality. We really have to decide: Do you or do you not agree with the statement that nobody else has a right to any money that you have made?” [8:00] “Something that’s really worthwhile [for people to understand] is that the government can only get money by taking it from the people who have made it. The government has no way to create wealth. The government can print money, but that’s just another way of taking it away from productive people; it’s called inflation. And so, no, there is no way for the government to give you money other than taking it away from other people.” Rabbi Lapin draws a sharp distinction between forced redistribution and spiritual generosity. In his view, wealth shared voluntarily — whether through charity, service, or community giving — retains a moral connection between the giver and the outcome. This bond is broken when wealth is redistributed through coercion, eroding the spiritual principle that you gain by giving value, hinting at the age-old notion that money is the root of all evil. Giving with purpose is rooted in biblical tradition, where obligation is guided by intent, not guilt. In this context, money is spiritual because it reflects the choices we make, not just in what we earn, but in how we give. Money Is Spiritual: The Spiritual Attributes of Money When something is physical, as Rabbi Lapin shares, you can measure it in a lab. It’s real and tangible. When something is spiritual, it’s felt. You cannot measure it in any scientific way. And yet, the effects of spirituality can be observed. While money may have physical uses, it also has spiritual significance because it can transcend physical results.  [16:44] “Each and every one of us can benefit financially by understanding the spiritual implications of what money really is.” When you give someone cash, there’s a physical connection between the value of the money and the work that went into earning that money. It helps others, like children, understand the true significance of what they have and its spiritual value. Credit cards and digital payments separate us from the value and work that went into those dollars and can make it difficult for kids to understand and appreciate them.  [20:09] “I always made a point of walking around with more cash than I ordinarily would, simply because I wanted to make sure that if I needed to give money to a child for any legitimate purpose, it was always in cash.” [22:57] “Money is brought into being when one human being serves another. There is no other way of money being created. And people must really understand that if the government prints money, that’s really not the creation of money at all.”  As you can see, to Rabbi Lapin, money is far more than just a means to an end. It’s also a true reflection of human connection. Every transaction speaks to a bond of trust, cooperation, and mutual respect. These spiritual attributes give money its true weight: Money is a connector, not a divider: it links people through service and shared purpose. Money rewards contribution: the more value you bring to others, the more you’re likely to receive. Money honors diligence and fairness: it flows most consistently where people act with reliability, gratitude, and honesty. In this view, money isn’t earned in isolation. It’s a byproduct of how well we serve others. The spiritual power of money lies not in the paper, but in the relationship behind the exchange. The Exception, Not the Rule Of course, one of the arguments against the “money is spiritual” idea is that bad people have money too. To this, Rabbi Lapin shares a story about the time he met the actor George Burns. The actor smoked a few cigars a day and was in good health. The conclusion that some people might draw is that you can be perfectly healthy by smoking cigars. However, George was clearly the exception, not the rule. There’s plenty of evidence that it’s not good for you.  Money is the same way. The creation of money is a spiritual endeavor. When bad people have lots of money, that’s not evidence that money is bad. It’s the exception to the rule. And in most cases, those people are still providing a service that is good in some way, which is why they make money.  [35:17] “More than ten percent of my book, Thou Shall Prosper, is devoted to shattering that incredibly destructive spiritual schematic—that making money either labels me as a less-than-good person or that making money is going to end up being a huge problem for me.” One of the first ways to get rid of this spiritual schematic is to unlearn that making money is synonymous with bad behavior. Making money is not ripping people off, nor is it taking money. Making money is providing value to other people and enriching their lives, and being rewarded for doing so.  When earned through ethical service and intentional effort, you might say that money becomes part of spiritual stewardship. Wealth created this way affirms that money is spiritual, and not just a material pursuit. Again, in essence, it is a reflection of how well we serve others. When Should You Teach Children About Money? A listener asked the question: At what age should you teach children about money? And Rabbi Lapin joked that the correct age is negative three-quarters. In other words, at conception.  [50:28] “One of the reasons that we Jews believe that God gave us nine months instead… [of] two days after conception? Because we need time to prepare, and part of the preparation is for [the] father and mother to be on the same page. And that can take a few months to get right.” As he shares, the education of your child begins with the conversations between mother and father. So while your child may not be born yet, it’s the perfect time to get clear on things. And from birth on, everything you do is teaching your children about money.  That includes how you model work, handle spending, talk about value, and make giving a natural part of life. Children learn that money is spiritual when they see it used with gratitude, discipline, and purpose, especially when they are rewarded for contribution rather than entitlement. This approach echoes The Money Advantage’s principles around family banking: modeling responsibility, creating structure, and treating money as a long-term stewardship rather than a short-term fix. How Do You Price Your Services? [58:42] “The answer is really very simple and not at all complicated. You have to price your goods and services at the figure that gives you the highest revenue. If you make your price low, then you’re going to get more customers… then if you raise your price, you’ll have fewer people, but they’ll all be paying more. And whether x or y is bigger will tell you which direction to go.” Rabbi shares that people most commonly get hung up on the idea of “fair” pricing, which leads back to the idea that money is about taking and not making. You must root out this mindset and recognize that what you can offer is valuable to someone. By offering your service, you’re not taking money, you’re making it. Fairness and morality are already built into our economy because if the price is too high, nobody will purchase your services. So you reevaluate. It’s as simple as that. Eventually, you’ll arrive at a price that people will pay, even if it’s outside of some people’s budgets. Or, as stated above, you might make more revenue with a lower price if you have a high volume of customers. Whatever you do, make sure that you’re able to profit.  Rabbi Lapin’s advice encourages entrepreneurs to price from a place of confidence, not guilt. Undercharging doesn’t just affect your income; it can subtly signal to clients that your service isn’t worth much. But when you understand that money is spiritual, you recognize pricing as part of stewardship: honoring your time, talent, and the value you deliver in the marketplace. About Rabbi Lapin Rabbi Daniel Lapin, author, speaker, and TV host,

Considering Infinite Banking, got questions? We love your questions because we know that gaining clarity and getting answers frees you up to make decisions about your financial life. And chances are if you’re asking, someone else is too! Today, we're tackling audience questions on inflation, pensions, and infinite banking. https://www.youtube.com/watch?v=9Hsoxa0Q3Pg To get more clarity on common questions we get from our tribe, tune in now! Table of contentsHow Do You Weather the Current Economy?How Do You Track Borrowed Funds?What Are the MEC Guidelines on Single Premium Life Insurance?Think Long-TermAre IBC Policies Inflation-Proof?How Do You Maximize Your Pension Plan?When Can You Borrow from Your Policy?Why Do You Lose Control When You Pay Back Your Mortgage?Do the Cash Value and Death Benefit Both Get Paid at Death?Does Infinite Banking Work Internationally?Do I Have to Take a Policy Loan if I Have Other Options?Book A Strategy Call How do you weather the current economy?This is a good time to be in a position of cash and wait for the right opportunity. This means raising your standards and only choosing high-caliber deals that align with your values. This is also a good time to innovate in your field. How Do You Weather the Current Economy? To be more specific, this listener asked how they can navigate the current economy and also create passive income within a year. Is this possible?  Getting capital within a year may be difficult because the Fed is tightening up on capital. This is part of the reason we’re looking at a recession now. Remember that “opportunity seeks liquidity,” as Nelson Nash would say. Don’t feel like you need to deploy capital right now. Since the cost of capital is increasing, you want to wait for the right deal, not just any deal. It’s good to be smart and hang onto your capital until you find something that meets all your standards.  This is also a good time to network and connect with other professionals that you can learn from. Be sure you’re connecting with high-caliber people that have good advice that aligns with your values. You can also look at your current career path or income stream and seek ways to increase that revenue now. That doesn’t necessarily mean investing. It can also mean expanding your offerings, pivoting to fit the market, and improving your services. A recession is a long game, so you need to think about the bigger picture as you navigate this time. Short-term decision-making won’t serve you in this economic climate. How Do You Track Borrowed Funds? Whether you have a large portfolio of policies or just one policy, you might have some loans you want to track. Staying organized can help you with your due diligence, however, don’t get too bogged down with the minute details. One way you can keep track of things is by opening a separate bank account. When you take a loan, put the money into that one account, separate from your other money. Then pay for the investment or whatever you’re doing from the new account. Then send the cash flow from the investment back into that checking account. You can then use this as the fund with which to pay back the policy loan. This way, everything is organized, yet you don’t have to get into the weeds to track it all.  If you’re really picky about it, you can have multiple accounts, one for every loan or investment. Whatever you do, make sure it works for you and makes things easier, not harder.  What Are the MEC Guidelines on Single Premium Life Insurance? This viewer asked about the guidelines for Modified Endowment Contracts (MECs), and whether there is some benefit for churches or non-profit organizations.  A MEC policy is a policy that has been overfunded in the early years and loses its designation as life insurance. This is an IRS guideline to prevent people from laundering money or using life insurance as a tax shelter. When a policy becomes a MEC, it loses tax advantages and other benefits.  MEC guideline interpretations differ from company to company because they have different company structures and different growth projections. However, they will send notifications if you are going to MEC your policy so that you can rectify it if you wish.  Single Premium life insurance is when you fully pay up your life insurance in one year. The challenge is that if you take a large loan after a single premium policy, the interest cost may not be covered by the interest and dividend growth. This happens because the growth on the base premium is less than the growth on the paid-up additions, and a single premium is mostly PUA. This could mean that you run into a loss of tax advantages.  Think Long-Term Rather than aiming for perfection right now, don’t be afraid to just get started, even if it’s small. If you use a single premium policy, you could run into trouble with taxes and interest costs. You might want to put everything you can into a policy right away, but you don’t have to. It’s often better to take small steps. Figure out what’s sustainable for you (or your church or non-profit).  You don’t have to do a long schedule of premiums, either. You could contribute over ten years, for example. This allows you to feed a large lump sum into the policy for a relatively short amount of time. This can put you in a safer position.  Are IBC Policies Inflation-Proof? This question depends a bit on what facet of the policy you’re looking at. For example, if the costs of goods are going up, then there’s a lot of power in a level premium. Over time, that premium will feel less and less simply because it’s not increasing alongside everything else. And yet, your account is still increasing with interest and dividends. If you consider the cash value, it might not always be “inflation-proof.” This is going to depend on the rate of inflation compared to the growth rate of the policy. However, you also have to factor in the risk. A life insurance policy is virtually risk free because it can’t decrease. So while the growth rate might be a steady 4-5%, it’s safe and stable. The stock market may have an average of 12%, but if any losses occur, it can take years to recover. Tack inflation on top of that and it’s not looking so good.  How Do You Maximize Your Pension Plan? One of our viewers has a pension plan that didn’t pan out the way he had hoped it would. He expresses regret for what he wishes he had done but wants to do the best with what he has regardless. His question to us is, how can he do the best with what he has?  [39:25] “What’s interesting is, if our listeners think that they don’t have a lot of knowledge about how money works, people that pensions really don’t, because they don’t have to. Because they know when they retire there’s just going to be an income stream coming in. It’s an annuity.” These kinds of hyper-specific questions are hard to answer in a public format, however, there is some general wisdom we can impart. What’s interesting here is that if you started a life insurance policy now, you know that at some point, a benefit will pay to your spouse or other heirs. There’s some certainty there, and you won’t disinherit your heirs.  Paying into a life insurance policy may also enable you to create some hybrid income strategies that you wouldn’t otherwise have. When Can You Borrow from Your Policy? This is a common misconception that you borrow money FROM your life insurance policy. In reality, you’re borrowing AGAINST your policy. This distinction is critical because it indicates where the money is coming from, and to who you’re paying interest. When you take a loan, the life insurance company is your lender. They lend you the money because your cash value acts as collateral, and they know the loan will get paid back. Then, you pay interest to the life insurance company as you repay the loan. This means that during the entire term of the loan, your cash value is untouched. That way, the money can earn interest and dividends uninterrupted. You can’t actually borrow money from your policy, you can only withdraw it. Once you do, there’s no way to put it back. So taking a loan from the insurance company is advantageous.  To answer the original question, you can take a policy loan from day one of your policy. You won’t have much cash value to leverage at that point. However, it is available. Sometimes new policy owners like to take a small loan in the beginning and pay it back immediately, just to prove to themselves that it’s possible.  Why Do You Lose Control When You Pay Back Your Mortgage? It’s a common misconception that the closer you are to paying off your mortgage, the better off you are. This, unfortunately, is not true. The reason is that the banks are incredibly strict about loans and leverage. And if you’re only a few years away from paying off your mortgage, and lose your job, the banks will not be lenient. The first question they’ll ask if you want to access your equity is “where do you work?” If you’re unemployed, you won’t even make it to the application.  And because you’re close to paying off your home, it’s easy for the banks to foreclose on your house and still make a profit. On the other hand, if you are at the start of your loan, banks don’t want to foreclose on your home. Otherwise, they’ll be at a loss. So they’re more lenient and willing to work with you on solutions because they want the most bang for their buck.  Do the Cash Value and Death Benefit Both Get Paid at Death? Unfortunately, this is a topic that frequently gets miscommunicated to clients. This can be detrimental to common knowledge and understanding of cash value and death benefit. So, to be as clear as possible, you do not get both values upon death. So if your death benefit is $1 million, and your cash value at the time is $500k, your beneficiary does not receive $1.5 million.

You only have 18 summers with your kids. How will you make them count? Today, we’re talking with Jim Sheils of 18 Summers and author of The Family Boardroom. We're digging into how you—the entrepreneur, business owner, and busy parent—can deepen your relationship with your child. https://www.youtube.com/watch?v=7Mg58L5y8J8 So, if you want to create lifelong connections, trust, bonding, respect, and experiences in your family… tune in now! Table of contentsThe Origins of 18 SummersThe Power of 18 SummersThe One-to-One PrincipleYou Must Be PresentSay the UnspokenConnect with Jim SheilsAbout Jim Sheils Book A Strategy Call The Origins of 18 Summers [1:00] “Basically, there was a study done that the average person will spend… almost 85 percent of all the quality time they have with their children by the end of the 18th summer. Which starts to make sense, you know, because the time minimizes when they’re moving out and becoming adults and possibly not living near you. So it’s saying try to make the most of those 18, because [then] they’ll want to come back for more.” This flies in the face of common entrepreneurial advice that you should put your head down and focus solely on your business for 5 years. Supposedly, after that, you should have all the time in the world. However, Jim feels that this is the wrong way to approach business and family culture. Because if you don’t make the most of those first 18 summers of your children’s lives, you’ll lose out on future opportunities to be with them.  [13:35] “When you think about it, they turn 18 [and] they can go off to college, join the military, go out on their own. They’re out of high school. I don’t know about you, but my 19-year-old doesn’t hang out as much with me. Although we hang out, he doesn’t hang out with me as much as my 5-year-old.” The Power of 18 Summers [14:20] “It causes a positive urgency.” This is the power of the “18 summers” mindset. Of course, you’re going to have more time with your kids than that. However, those first 18 years are pivotal to your relationship with your children. Those years are formative for them and are the foundation of your relationship. Despite the time you have after they turn 18, you’ll never have more time than you do while they’re still in the school system.  Spending time with your children and making memories while they’re young will lay the groundwork for how the future goes.  [14:38] “Here’s what I know [from] working in this over a decade: you do those first 18 years right… the odds of your child [wanting] you to be a part of their life as an adult go up dramatically. [If] you’re missing, you’re not there, you’ve just been kind of a distant, disciplinarian, ATM machine that wasn’t part of the family life, the odds go down.” The One-to-One Principle [17:05] “If you want to have a really strong family and those dynamics of deeper relationships, you have to separate the parts to strengthen the whole. And that is what we call the one-to-one principle. One-on-one time. One-on-one time puts the magnifying glass on that individual relationship, takes away sibling rivalry, gives full attention. It is an absolute potent, potent relationship builder that’s rarely practiced.” This, Jim shares, is the secret to building strong relationships. Yet when you build a family, having one-on-one time can seem inefficient—you’ve got so many people to bond with and seemingly little time. But it doesn’t take much, it just has to be intentional. This is something you should do with your spouse, your siblings, your kids, and your in-laws. Your kids should have one-on-one time with each other.  This can take work, and it is so worth it in the grand scheme of things. You have to schedule and plan this time and prioritize it to ensure that it happens. And there should be balance so that all children feel like there is equal attention and care.  If you feel like things are disconnected, stale, or fraught in your household, schedule one-on-one time. That which gets scheduled gets done. To make it easier, do it on a rhythm. Do date nights on the same night every week. Plan something with each of your children once a quarter.  You Must Be Present Part of being intentional is also being 100% present in the moments that you spend with your family in one-on-one time. For Jim, that means no phones. What seems like an insignificant divide can actually be a barrier to your time with your loved ones.  [31:31] “If we’re always on our phones, how do our children know that they’re most important? Or our spouse? And if we’re always seeming to be dragged into that useless text or email—and maybe it’s not useless, I understand you’re working hard—but if they have something really important to talk to you about, do you think that’s going to invite them out to talk about it? Or is it going to continue to hold it in?” If you’re going to spend time with your loved ones, spend time with them. Make it about bonding and building your relationships. Don’t allow those walls to go up because you’re not fully invested in that time with your family.  Say the Unspoken [37:00] “On these days, or on these date nights with my wife, I’ve learned to say the unspoken. And what I’ve learned for a lot of our relationships, they’re missing a genuine compliment or a sincere apology.” In Jim’s opinion, one of the best things you can do when you spend time with your family is to lower your guard and be vulnerable. It’s opposite to how most of us move through the world, and yet it’s necessary to create meaningful relationships with your spouse and kids. It makes the person you’re spending time with see you as more human, and it makes them feel seen, appreciated, and connected to you.  [39:20] “Although providing for our families is a huge honor and nobility, I think, it doesn’t give us immunity. It doesn’t give us the immunity of manners and respect. And I’ve watched a lot of parents roll over their children saying, ‘I don’t need to apologize, I’m working too hard.’ And let me tell you, that only lasts so long, and when it starts to come out towards the end of that 18th summer where they’re like, ‘I don’t need to put up with this… anymore.’ “ If you want to have a healthy connection with your kids, you’ve got to model respect TO them by being genuine in your apologies and compliments. And be generous with them. Your kids learn to respect you in the long term by the respect you show them. [40:03] “The guard comes down, the relationship builds up.” Connect with Jim Sheils Instagram: @18summerstribe 18Summers.com Jim@18Summers.com The Family Board Meeting book About Jim Sheils  When YPO, EO, Harvard University, and other world-class organizations want to help their people to succeed at home, they call on Jim Sheils. There's a reason people call him Crazy Glue for families. In keynote presentations, workshops, team events, or private consulting, Jim has helped hundreds of the top entrepreneurs and thought leaders around the world focus and implement where it really counts, at home. Book A Strategy Call We offer two powerful ways to help you create lasting impact: Financial Strategy Call – Discover how Privatized Banking, alternative investments, tax-mitigation, and cash flow strategies can accelerate your time and money freedom while improving your life today. Let us show you how to align your financial resources for maximum growth and efficiency. Book a Strategy Call with our team today. Legacy Strategy Call – If you want to uncover your family values, mission, and vision, and create a legacy that’s about more than just money, we can guide you through the process of financial stewardship and family leadership. Save time coordinating your family’s finances while building a legacy that lasts for generations. Book a Legacy Strategy Call to learn more about how we can help. We specialize in working with wealth creators and their families to unlock their potential and build a meaningful, multigenerational legacy.

Despite the fact that many know they need life insurance, nearly half of consumers do not have insurance, according to a 2021 LIMRA study. The most common reasons are that they think it is too expensive, they have other financial priorities, or they aren’t aware of what they need and what type to purchase. https://www.youtube.com/watch?v=vuKJznszXbE To help you overcome the hurdles and make decisions to shrink your life insurance coverage gaps, we’re sharing the 10 benefits of life insurance. Life insurance isn't just about death benefits but a powerful tool for creating security, growth, and legacy. So, if you have life insurance needs, doubts, interests, questions, or even fears, and you want straight-talk, no-nonsense answers… tune in now! Table of contentsWhy Do People Need Insurance?How Much Life Insurance Do You Need?10 Reasons People Buy Life Insurance1. The Benefits Outweigh the Costs2. Financial Protection for Loved Ones3. Peace of Mind During Life’s Uncertainties4. Tax Advantages to Grow Wealth Faster5. Additional Retirement Income Strategies6. Automatic Savings & Forced Discipline7. Excellent, Efficient Cash Storage8. Ability to Capitalize on Opportunities9. Leverage the Velocity of Money10. Generational WealthWrapping up on Life Insurance BenefitsBook A Strategy CallLinks for Further Reading Why Do People Need Insurance? [1:50] “I really just think it comes down to [the fact that] people do not want to face their own mortality. I think I said this once before on a podcast—we all know we’re going to die, we just don’t believe we’re going to die.” It’s almost an evolutionary development because if we were constantly obsessing over our mortality, the world would be a much different place. Even so, people think about their deaths the more they have to protect: families, estates, etc. Life insurance is the product that protects your family and estate if you die. Knowing that that protection is in place, you can sleep easier at night knowing that what matters to you will be taken care of no matter what.  How Much Life Insurance Do You Need? Unfortunately, many families in the US are underinsured. Life insurance is perhaps one of the only insurance categories where this can happen. You can’t underinsure your car or your house, nor would you want to. Yet people underinsure themselves all the time.  One way this happens is because many people calculate their insurance by using a “needs analysis.” In other words they count out how much money they’d need to pay off their home, car, and other debt if they passed away. Sometimes they include the cost of their children’s education. However, this doesn’t account for any income. While this is of course a better approach than having no insurance, there’s an even more effective way. It’s called the human life value approach, or HLV. This is a way of calculating all the income you’d earn over your working years so that your insurance can act as a full income replacement. So if you’re 30, you may multiply your annual income by 30 to get your HLV. If you’re 50, you’d multiply it by about 10 or 20, depending.  While this number seems shocking to many people, it’s realistic. Insurance companies won’t overinsure you, and they calculate HLV to determine the maximum amount of insurance you are entitled to. Many people don’t start out with enough liquidity to pay the premiums for their full HLV. However, just by knowing what that number is, you can feel more confident in the amount of insurance you do choose to purchase.  10 Reasons People Buy Life Insurance We don’t want to tell you what you “need,” because everyone has different circumstances. However, what we can do is share with you why people buy life insurance, and why they keep it. Hopefully, these can help you decide for yourself whether life insurance will be a benefit to you. So let’s explore these 10 life insurance benefits: 1. The Benefits Outweigh the Costs [17:10] “Instead of painting in your mind ‘It’s too expensive, I can’t do it,’ just check it out first. And then figure out if it’s too expensive.” The problem with “too expensive” is that it means something different to different people. For some, it may mean that they can’t fit it into their monthly expenses. For others, it may be expensive if the cost outweighs the benefits.  To the former, there may be a way that we can help you find some wiggle room. That may include rearranging some of your expenses or paying down some debt. Or, you could get a smaller whole-life policy, and fill in the gaps with cheaper term insurance.  For the latter mindset, we encourage you to think about the benefits. Protecting your family, having a non-correlated asset, the ability to leverage your dollars, and contractual guarantees—these are just a few of the true costs of whole life insurance. Consider these value comparisons: A $500,000 whole life policy might cost $400/month, but provides $500,000 immediate death benefit The same $400 invested monthly would take years to reach $500,000 (and market risk could reduce it) You get protection PLUS cash value growth, not just one or the other 2. Financial Protection for Loved Ones Insurance pays out to your loved ones in the event that you pass. This could mean your spouse, your children, or anyone else of importance to you. The loss of your life will be one of the most difficult things your family can experience. That time is made significantly harder by financial troubles of any kind. When you have life insurance in place, those troubles disappear for a time. This gives family the space to grieve and regroup without other stressors.  With life insurance money, families can keep food on the table, have a roof over their heads, pay funeral costs, hire childcare, and otherwise keep the house running. Your family won’t have to start a GoFundMe or file for bankruptcy. And if you have a policy on your spouse, you can have the comfort of knowing that you won’t have to worry if something happened to them. 3. Peace of Mind During Life’s Uncertainties Knowing that your family is going to be protected can ease a huge burden off your shoulders. And how much easier will it be to live your life knowing that no matter what, things will be okay? That your family will continue to be cared for the way they would if you were still alive. It provides a sense of absolute certainty that’s hard to find in life.  When you have certainty, you act with much more confidence and joy. If you can have peace of mind knowing your family will be looked after, the way you live your daily life will be completely transformed.  [29:00] “If you don’t believe in this principle, then just cancel your car insurance and drive across town. You will drive completely differently and inefficiently because you’re worried about your speed, you’re worried about how you make your turns. You’re worried about everything, and you can’t be efficient in your driving.” 4. Tax Advantages to Grow Wealth Faster Another benefit of Whole Life insurance is that it’s a very tax-advantaged asset. When you access your cash value via a policy loan, you get tax-free access to your money. (With some caveats). The death benefit is also passed to your heirs completely income-tax-free (no caveats). This is a significant advantage because accounts like a 401k are tax-deferred. Many people love that they can contribute to their qualified plans with pre-tax dollars. However, that tax bill has to come due eventually. This can translate to a significant tax bill in retirement when you least want to pay those taxes.  While you may pay your whole life insurance premiums with after-tax dollars, you’re getting the benefit of virtually tax-free access to your cash reserves when you want to use them. The stipulation is that if you overfund your policy so that it becomes a MEC, you lose tax advantages. You must also pay taxes if you withdraw funds (rather than borrow against) beyond the cost basis from the cash value. 5. Additional Retirement Income Strategies When you have a whole life insurance policy, you open yourself up to additional income strategies in retirement. Cash value is guaranteed not to drop because it’s not exposed to the whims of the stock market. This means you can use it as an income buffer to increase the longevity of your investment accounts. Dr. Wade Pfau calls this the Volatility Buffer.  Whole life insurance tends to make all assets work a bit better. By virtue of having it you have access to new strategies that will take your money further in almost every circumstance. Even if you elect to use other assets for future income, whole life insurance can be a good addition to your portfolio. 6. Automatic Savings & Forced Discipline When you open a whole life insurance policy, you’re creating a system of automatic savings for yourself.  [40:20] “This is extremely beneficial because many people think about saving if there’s money left over at the end of the month. It’s a side strategy.”  When you open a life insurance policy, your premiums feel like a bill. You’ve got to pay them each month in order to keep your policy in good standing. However, for every single premium payment, you’re contributing to your cash value. Just like your mortgage builds equity in your home, your premiums build equity in your policy.  You can then leverage this equity at any time for any reason because it’s not controlled by the banks. And when you do leverage it, your cash value stays intact, so it continues to compound uninterrupted. In this way, you can save money in an extremely efficient way.  7. Excellent, Efficient Cash Storage When you save money into a whole life insurance policy designed for Infinite Banking, you get safety, liquidity, and growth. Most assets only have two of those three qualities,