The Money Advantage Podcast https://themoneyadvantage.com Success Leaves Clues, Follow the Successful Few Not the Crowd! Wealth Is Accessible to Anyone. Take Control of Your Destiny! Sat, 17 Nov 2018 18:58:47 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.8 The Money Advantage provides simple, fun, and doable financial education resources that help you keep and control more of what you make every month, get your money working for you, increase your cash flow, reduce your risk and give you permission to use your money along the way.<br /> <br /> We serve Entrepreneurs and Business Owners, creating solutions and strategies that previously didn’t exist in your personal and business economy.<br /> <br /> We are proponents of the Prosperity Economics Movement, which offers an alternative to “typical” financial planning and its tendency to subject assets to never-ending taxes, fees, and market risk.<br /> <br /> We show you how to utilize a Privatized Banking System, which allows you to improve access to capital, boost your returns, earn uninterrupted compound growth, reduce risk, AND have the ability to leverage your capital to take advantage of opportunities, getting your money to do more than one job at the same time.<br /> <br /> Through the family office model approach in our advisory practices, we bring together comprehensive education and strategies in the areas of cash flow, long-term tax reduction, estate and business legal planning, creative whole life strategies and alternative investments. Bruce Wehner & Rachel Marshall clean episodic Bruce Wehner & Rachel Marshall hello@themoneyadvantage.com hello@themoneyadvantage.com (Bruce Wehner & Rachel Marshall) Personal Finance for the Entrepreneurially-Minded! The Money Advantage Podcast https://themoneyadvantage.com/wp-content/uploads/powerpress/3000x_border-798.jpg https://themoneyadvantage.com Privatized Banking: What Kind of Policy Do You Use? – TMA 052 https://themoneyadvantage.com/privatized-banking-what-kind-of-policy-do-you-use/ Mon, 12 Nov 2018 14:30:49 +0000 https://themoneyadvantage.com/?p=3345 You’re on the hunt for the best life insurance policy to use for Privatized Banking. For this, not just any policy will do. You want to buy exactly the right kind of life insurance to get cash you can use, earn uninterrupted compounding, and have your dollars working in two places at the same time.  Life insurance is a powerful product that can serve you in infinite ways at the same time.  But designing a life insurance policy in a way that fulfills its potential has become almost a lost art. One type of policy, with particular high-performance modifications, does Privatized Banking best.  The special design ensures that you have high early cash value and maximum long-term growth while maintaining its tax advantages.   Why You’re Buying a Privatized Banking Policy Let’s back up to gain some context. You already have the cash to begin investing.  But instead of draining your savings to buy the investment, you want to maintain control of your capital.  You know that you can maximize the long-term efficiency of your whole personal economy by using the Privatized Banking Strategy.  With it, you get safety, growth, and access to your money. To implement this strategy, you’ll first store your capital in a life insurance contract. When you want to invest, you’ll borrow against your cash value, using a guaranteed loan feature.  And when you repay the loan, you have the flexibility to choose a pace that works for you. Because you’re not using your capital, but collateralizing it, you’ll continue earning uninterrupted compound interest.  Even while you invest, giving you returns in two places at once. Now that you’re ready to buy a policy to help you accomplish all that, what do you look for? Your Questions About What Kind of Policy to Use for Privatized Banking, Answered If you’ve ever spent a minute shopping for life insurance, the process can be downright overwhelming.  It’s easy to feel like the assortment of options is like Baskin Robbin’s 31 flavors. All might be good, but which one is best? Today, we’ll answer your most important questions about Privatized Banking policies: What kind of life insurance policy do I need? What are the essentials to make sure the policy performs best? Can I use any cash value life insurance product? What makes the policy specially designed? How do I ensure it won’t take forever to build up cash value and I can use my cash quickly to invest in opportunities? We’ll reveal the design of the ideal life insurance policy for Privatized Banking.  You’ll find out the three major types of life insurance, and why only one works for Privatized Banking.  You’ll discover the only kind of life insurance company you want to work with.  And you’ll learn what makes a policy specially designed so that it becomes a great place to store cash. You’ll gain a map to label all the crucial components of a Privatized Banking policy. Instead of being overwhelmed with minor details, you’ll know exactly what you want and what to focus on. And you’ll be equipped with purchaser prowess to quickly and easily determine if a policy measures up, so you don’t buy a policy that underperforms. Where Privatized Banking Fits into Your Cash Flow System Privatized Banking with Specially Designed Life Insurance Contracts (SDLIC) is just one step in the greater Cash Flow System. It fits into Stage 2, a part of keeping and protecting your money. We said before that Privatized Banking is like the peanut butter to your cash flow sandwich.  It’s wedged between Stage 1 – keeping more of the money you already make – and Stage 3 – increasing your cash flow from investments. And it helps you do everything else better. Privatized Banking increases your financial efficiency, enables you to keep more of what you already make, amplifies your cash-flowing asset strategy, and accelerates your time and money freedom. Privatized Banking is the how of keeping and protecting you... You’re on the hunt for the best life insurance policy to use for Privatized Banking. For this, not just any policy will do. You want to buy exactly the right kind of life insurance to get cash you can use, earn uninterrupted compounding, and have your dollars working in two places at the same time.

Life insurance is a powerful product that can serve you in infinite ways at the same time.  But designing a life insurance policy in a way that fulfills its potential has become almost a lost art.

One type of policy, with particular high-performance modifications, does Privatized Banking best.  The special design ensures that you have high early cash value and maximum long-term growth while maintaining its tax advantages.

 

Why You’re Buying a Privatized Banking Policy

Let’s back up to gain some context.

You already have the cash to begin investing.  But instead of draining your savings to buy the investment, you want to maintain control of your capital.  You know that you can maximize the long-term efficiency of your whole personal economy by using the Privatized Banking Strategy.  With it, you get safety, growth, and access to your money.

To implement this strategy, you’ll first store your capital in a life insurance contract.

When you want to invest, you’ll borrow against your cash value, using a guaranteed loan feature.  And when you repay the loan, you have the flexibility to choose a pace that works for you.

Because you’re not using your capital, but collateralizing it, you’ll continue earning uninterrupted compound interest.  Even while you invest, giving you returns in two places at once.

Now that you’re ready to buy a policy to help you accomplish all that, what do you look for?

Your Questions About What Kind of Policy to Use for Privatized Banking, Answered

If you’ve ever spent a minute shopping for life insurance, the process can be downright overwhelming.  It’s easy to feel like the assortment of options is like Baskin Robbin’s 31 flavors. All might be good, but which one is best?

Today, we’ll answer your most important questions about Privatized Banking policies:

  1. What kind of life insurance policy do I need?
  2. What are the essentials to make sure the policy performs best?
  3. Can I use any cash value life insurance product?
  4. What makes the policy specially designed?
  5. How do I ensure it won’t take forever to build up cash value and I can use my cash quickly to invest in opportunities?

We’ll reveal the design of the ideal life insurance policy for Privatized Banking.  You’ll find out the three major types of life insurance, and why only one works for Privatized Banking.  You’ll discover the only kind of life insurance company you want to work with.  And you’ll learn what makes a policy specially designed so that it becomes a great place to store cash.

You’ll gain a map to label all the crucial components of a Privatized Banking policy.

Instead of being overwhelmed with minor details, you’ll know exactly what you want and what to focus on.

And you’ll be equipped with purchaser prowess to quickly and easily determine if a policy measures up, so you don’t buy a policy that underperforms.

Where Privatized Banking Fits into Your Cash Flow System

Privatized Banking with Specially Designed Life Insurance Contracts (SDLIC) is just one step in the greater Cash Flow System.

It fits into Stage 2, a part of keeping and protecting your money.

We said before that Privatized Banking is like the peanut butter to your cash flow sandwich.  It’s wedged between Stage 1 – keeping more of the money you already make – and Stage 3 – increasing your cash flow from investments.

And it helps you do everything else better. Privatized Banking increases your financial efficiency, enables you to keep more of what you already make, amplifies your cash-flowing asset strategy, and accelerates your time and money freedom.

Privatized Banking is the how of keeping and protecting your money.  And specially designed life insurance is the what.

What Kind of Life Insurance Policy Do I Need?

There are three primary types of life insurance: term, universal, and whole life insurance.  All types have a purpose, solving problems for a part of the population, but only one does Privatized Banking well.

Term Insurance

The first type is term insurance.  It covers you for a specific timeframe, known as the term of the policy.  The term is generally 10 or 20 years, but it can be as short as 1 year and as long as 30 years.

During this term, it provides a death benefit to your heirs, if you pass away.

That’s it.  No bells or whistles.  No cash value or benefit after the term is over.  And no money back.

The greatest advantage of term insurance is that it provides a lot of death benefit at a low premium, especially if you are young and healthy.

But the downside is that if you buy a term policy, you’ll likely never get the death benefit.  That’s because historically, only 1 – 2% of term policies pay out.  The other 98% of policies expire while the insured is still alive, or they are converted to permanent policies.  The actuarial data used to set rates does a great job of providing the best rates to people statistically likely to outlive the term.

A term policy doesn’t vanish after the term.  That’s because it often comes as a guaranteed renewable term policy, giving you the option to renew the policy at a new rate once the term is over, without having to go through underwriting again.

However, once the term is up and you want to renew the policy, you’ll see a steep rate increase that will continue to rise each year.  This is due to the annually renewable term policy that will be in force after the original term expires.

For instance, one $750,000 term policy cost $606/year during the term.  The owner, now age 59, facing an expiring term, had the option to continue the same policy at a premium of $22,000/year.

Term Insurance and Privatized Banking

When it comes to Privatized Banking, term as a stand-alone policy won’t suffice.  With term, there’s no cash value to use – and cash value is the bread and butter of Privatized Banking.

However, term insurance is a powerful supplement to maximize your coverage up to your Human Life Value right away.  It lets you open future cash value policies, even if your health falters before you get that opportunity.

You do this with a convertibility feature.  This means you can convert the term policy to a permanent policy at any point during the term.  At conversion, you would then pay a new premium, but get to keep your original health underwriting status.  This is a huge bonus to someone who started a convertible term policy, who may later be diagnosed with a condition, and yet still maintains the ability to be rated with their original health status when they convert.  This ensures they still qualify for coverage and will pay lower rates on the permanent policy.

Universal Insurance

Universal life insurance originated in the 1970’s and 80’s.  The coverage is built on an annually-renewable term life insurance chassis, with an accumulation fund that has additional ways to build up cash value inside.  You can accumulate money tax-advantaged, but the cost of insurance increases each year, which may require an increase in premium to keep the policy in force.

While maintaining a moderate price point, universal life has the potential to earn high rates.  Premiums above the cost of insurance create cash value you can use.

With universal life insurance, you have adjustable premiums and an adjustable death benefit.

Universal life insurance comes in three main varieties: traditional universal, variable universal, and equity-indexed universal life insurance.

Here’s a brief look at each one.

Traditional Universal Life (UL)

With a traditional universal life policy, your premium grows interest-rate sensitive to create cash value.

The policy is built upon the assumption of what interest rates will do in the future, to maintain the proper ratios of premium to death benefit, so the policy doesn’t lapse.  If interest rates fall, the policy may require more cash than illustrated.

Many unfortunate and unsuspecting people holding universal policies into their 70’s and 80’s discovered that lower than expected interest rates had failed to create the growth needed to maintain the death benefit.  They found that they could not keep up with the increased premium cost.  Many were forced to cancel their universal policies at a time when they needed life insurance the most.

Variable Universal Life (VUL)

In the 80’s, the stock market took off, and people began taking cash out of universal and whole life policies and putting it into the stock market.

Instead of giving up market share, the insurance industry responded by getting into the investment world.  A new policy structure of variable universal life was born.  In this product, cash value was not in an interest product, but placed into the stock market.

Then, in 2001, with the dotcom crash, these insurance policies needed more premium to keep from lapsing.

In addition to the flailing performance, these policies had more built-in costs, because there are investment costs along the way also.

Equity-Indexed Universal Life (EIUL)

Another product was created in response to people losing a lot of money in variable universal life.

Equity-indexed universal life seemed more appealing because it gave you access to market returns, without as much risk.

Rather than have the market exposure of VUL, equity indexed universal life gives you a built-in floor and ceiling on your cash value growth.  The floor protects your money from losing value, but you are capped on the upside.

Rather than being invested directly in mutual funds, your accumulation fund is invested in an equity index account. Cash value growth is based on the performance of an index, although the funds are not directly invested in the stock market.

EIULs still come with increased internal costs.  To hedge against the loss, they have to use complex investing strategies using options, which run up operational costs.

Owners of EIUL policies are counting on average rates of return.  But returns haven’t been as high as anticipated.  Additionally, if you borrow, or have lower performance than illustrated, the policy may require additional cash over and above the illustrated premiums.

A Note About Variable Life Insurance

About the same time that universal life insurance came on the scene, variable life insurance was also introduced.  Variable life insurance is very similar to variable universal life, but offers a fixed premium, a flexible death benefit, and the ability to earn a variable rate of return.

Universal Life, Variable Life, and Privatized Banking

While universal and variable life insurance policies do have a cash value component, these policies are not appropriate for Privatized Banking. Privatized Banking requires a solid foundation of predictability, certainty, and guarantees, so that you maintain control.

With universal life insurance, you don’t get 100% certainty that the cash value will remain steady, or that the premium illustrated will be sufficient.  Therefore, you don’t have the performance guarantees that optimize your control.

Whole Life insurance

Whole life insurance is a truly permanent coverage.  It has a guaranteed consistent premium, a guaranteed death benefit, and guaranteed cash value, throughout your entire life.Privatized Banking - What Kind of Policy Do You Use Part1

Not only do you have a death benefit you can rely on, but you also have reliable cash value you can use while you’re alive.

Let’s take a closer look at the guarantees.

Premiums

First, premiums are level.  They’re guaranteed to never increase in order to maintain the death benefit.

On the price-point spectrum, whole life starts higher than other types of life insurance.

Actuaries determine the death benefit, based on what you would like to place into the policy.

The 1-year renewable term is spread over the contract period (121 years), leveling out the cost of insurance over that time period.  They know that early on, your insurance costs are lower, and as you get older, the costs rise.  They spread these costs out over entire contract, giving you the certainty that your premiums are not going to increase.

Cash Value

Then, the cash value grows with a guaranteed minimum return over time.

Like building equity in a house, the cash value continues to rise over time until it equals the death benefit.

Death Benefit

Finally, as long as you keep the policy in force, it’s guaranteed to pay out.

The “end” of a whole life policy is the “age of endowment.”  This marker in a whole life policy is important, because it’s essentially a maximum life expectancy year imprinted on all policies. For instance, policies used to illustrate to age 100, but now have extended to age 121 in most cases, to account for increased life expectancies.

If the policy owner reaches the age of endowment alive, the entire cash value will pay out to them directly.

Whole Life Insurance and Privatized Banking

Privatized Banking needs guarantees in what your cash value will be, and whole life is the only life insurance product that can rise to this occasion.

With whole life insurance, you have 100% certainty that if you put in what’s illustrated, the policy will perform as illustrated.

Now, moving on to the good stuff.

To maximize your cash value and usability, you want to ensure your whole life policy is specially designed, with a specific type of company, and specific high-performance modifications.

The Only Type of Life Insurance Company You Want to Work With

There are two types of life insurance companies: stock companies and mutual companies.

You only want to work with a mutual company, and here’s why:

The category determines who receives the profits of the company and how that impacts your cash value.

Stock companies are owned by the stockholders, while mutual companies are owned by the policy owners.

A stock company has loyalty to stockholders and pays them dividends when the company is profitable.

Likewise, a mutual company pays dividends when profitable, but to policyowners.

In addition to dividends, policyowners also get voting rights in a mutual company. They can exercise their say in the leadership, ownership, and relevant decisions of the company with an annual vote.

How Dividends Work

As a policy owner, you pay in a premium and gain ownership to a part of the company based on your death benefit.

Then, at the end of the year, the board of directors analyzes their profitability.

They first look at the cost to run the company.  This includes maintaining the service force to service the policies from the headquarters, paying people who sell policies in the form of commissions, and calculating how much they paid out in death claims.

Then they assess the input of premium and how it performed.

Life insurance companies have a long-range, conservative investment structure that allows them to make performance guarantees.  Most premium dollars are employed in highly-rated bonds – highly-rated corporate bonds, treasuries, and municipal bonds.  The rest is deployed in real estate projects, with a tiny sliver in securities-related products.

They determine profits, place a portion in reserves, and declare the rest as a dividend rate.  The dividend is then paid to policyholders.

How Dividends Increase Your Policy’s Performance

Dividends are not a guaranteed part of the policy.  Instead, they make up a part of your non-guaranteed portion of the illustration.

However, because of the highly-controlled fiscal environment of a life insurance company, profits tend to mirror projections closely.  Because of this certainty, dividends are highly anticipated to be paid out.  This expectation is confirmed by the consistent payment of dividends every single year, even throughout the Great Depression, by the stable and long-standing companies that we do business with.

Once the dividend is declared, the policy owner then has several options in how they would like to receive the dividend payment.  The best option directly increases your cash value, while also adding more death benefit.

And unlike a stock dividend, which can fluctuate in value after it’s assigned, a mutual life insurance dividend that’s added to your cash value sets a new cash value floor.  The cash value can never drop below that line in the future.

The Tax Advantages of Specially Designed Life Insurance

With specially-designed whole life insurance, you gain significant tax advantages.  If the policy is utilized correctly, you aren’t taxed on the growth, and you can use it tax-free.

For this benefit, you pay tax on premium dollars before you put them in the policy.

Then, your cash value grows tax-deferred, so you don’t owe tax on the growth each year.

You can use the cash value through loans completely tax-free.

And when the death benefit is paid to your heirs, it’s completely income-tax-free as well.

It’s a triple-tax advantaged asset that you pay tax on the seed, but not the harvest.

However, there are two primary ways to trigger a taxable event inside of a specially-designed policy, and both are avoidable.

One taxable event would be accessing cash value through withdrawals (different than a loan) above your cost basis (what you paid in).

The other taxable event would be if your policy becomes a Modified Endowment Contract (MEC) by having too little death benefit to support the infusion of cash.

If your policy becomes a MEC, the tax structure changes, becoming similar to a 401k or qualified plan, where you have to pay tax when you use your money.

Policies are monitored with MEC tests to raise the death benefit correspondingly, so you overfund up to the maximum without crossing the MEC line.

What Are the Essentials to Make Sure the Policy Performs Best?

Let’s pull all these strings together into what’s required to ensure a policy performs best and delivers the control and certainty you need for Privatized Banking.

We’ll create a sort of virtual reality map that will give you the ability to look at the real world with labels marking everything important.

We want to help you recognize the 4 crucial elements of a Privatized Banking policy, so you can quickly and easily determine if the policy measures up and gives you what you’re looking for.

  1. Premium – the policy has a guaranteed premium that will never increase
  2. Cash value – you have a minimum guaranteed cash value that will continue to grow
  3. Dividends – the policy illustrates non-guaranteed, but highly-anticipated dividends, which increase the cash value
  4. Not a Modified Endowment Contract (MEC) – the policy does not turn into a MEC

Now that we’ve covered the basics, let’s dive into optimizing your policy.  To perform Privatized Banking best, your policy needs a special design and modifications to jumpstart and accelerate early cash value.

How Do I Build Cash Value Quickly to Invest in Opportunities?

Whole life has fallen out of favor over the years because people have become enamored with rates of return.

However, utilizing a specially designed policy with Privatized Banking gives not only competitive returns, but much more.

You also gain uninterrupted compounding, certainty, and the ability to access your capital by collateralizing your policy.  By keeping your own cash, and putting someone else’s to work in another asset, you gain the advantage of earning returns in two places at the same time.

While a standard whole life insurance policy takes many years to build up enough cash value to write home about, a specially designed policy is different.  With some intentional and strategic policy design, your cash value can quickly overcome the costs and exceed the amount you’ve paid in premium.

How does it work?

What Makes the Policy Specially Designed?

The funding structure of a specially designed policy accelerates your cash value by combining three different types of premium within your policy.

First, base premium provides a base policy and maximizes the death benefit.

Next, a term rider boosts the death benefit to satisfy the MEC rules.

Finally, level paid-up additions riders supercharge the cash value by purchasing little mini paid-up policies.

Because you’re overfunding the death benefit, the death benefit continues to rise over time, while you’re also building cash value.

Flexibility in How Long You Pay Premiums

While most people find it difficult to plan a specific funding level for the rest of their life, unaware of how their circumstances may change, there’s flexibility in how you pay premiums.

It is possible to illustrate funding a policy for as long as your whole life, or in as little as 3 years.  If you overfund early, you can tell the company to reduce the death benefit so that it’s fully paid up, with no more future premiums due.

Storing Your Money in Life Insurance Is Similar to Storing Your Money in the Bank, Only Better

The goal of Privatized Banking is to maximize the cash value in the early years so you can be the bank, mimicking a place to store money like you’d store it in a bank.

Why not store in a bank?  Let’s look at the pros and cons of each in comparison.

The Bank

In a bank, your money is easily accessible, so you have control.

It’s backed by the FDIC, so it’s generally safe.  However, if you look at the reserves of the FDIC, they are minimal, compared to the deposits they back.  If a crisis required using the FDIC to fulfill depositor’s claims, the government would print money to cover it, putting more money into circulation and causing inflation, so your money would be worth less.

In a bank, you do get a rate of return, although, for most banks, it’s currently well below 1%.  And you will have to put the growth on your tax return because it’s taxable.

The primary downside of using the bank is that if you take money out, you stop earning a return on the portion you removed.  The opportunity cost of using your cash is that you give up the compounding effect, and you’re never able to earn on that same cash again.

Specially Designed Whole Life Insurance Contract

In a whole life insurance contract that has been specially designed, the internal rate of return averages between 2-6%, at least 100X more than a bank.  That growth, when designed and used properly, is not taxable.

Guaranteed Access

If you have cash value, you have collateral.  By contract, to get access to capital, all you need to do is to sign a piece a paper requesting a loan up to your available cash value.  You have guaranteed access to money.  You don’t have to apply, verify creditworthiness, or prove you can repay.  The insurance company will automatically send your money.

Most insurance companies will say it takes 5 – 7 business days to get your cash into your bank.  In our experience, it can be as quick as 48 hours.  It’s easily accessible, but not “15-minute money.”  It requires a bit more planning, but there’s no barrier to getting your cash, except the timeframe.

Interest

You will be charged interest on this loan.  Some people wonder why you would want to pay interest on your own money.  Factually, you’re not.  Rather, you’re paying interest to use the life insurance company’s money.

Let’s explain.

If you have $100K cash value and request a $50K loan, the full $100K continues to earn interest and dividends.  Why? Because you did not take your money out. You used your cash as collateral and took a loan from the life insurance company.  This allows your money to keep growing, which is the ticket to uninterrupted compound interest.

Flexible Repayments

When it comes to repaying the loan, you get options there, too.

You can choose to pay back all at once or on a schedule of your choosing.

While interest does continue to accrue as long as there’s an outstanding loan, you have the option to let it accrue without paying it for a time, as long as you have a sufficient cash value buffer above your loan to prevent the policy from collapsing.

The Limiting Factor Is Your Thinking

Using Privatized Banking with life insurance is really about how you think.

Everybody has banking in their lives.  Banks are profitable.

If you can recapture the banking function in your life, you can recapture some of that profitability, while at the same time, getting protection for your income.

Up Next

Today we’ve covered the basic elements that make up a Privatized Banking policy – a dividend-paying whole life insurance contract with a mutual company, that’s specially designed for high early cash value.  It has guaranteed premiums, guaranteed cash value, and a guaranteed death benefit, paving the way to certainty and control.  This contract grows tax-deferred and can be used tax-free, as long as the policy is used correctly and doesn’t become a Modified Endowment Contract.

In the next article of this series, we’ll reveal the exact funding ratios and high-performance custom modifications that you want to have in place to ensure your policy performs.

We’ll also examine some of the more technical elements that often incite misguided attention and debate, and help you gain the ability to focus on what matters most.

In addition, because life insurance doesn’t come as a one-size-fits-all, we’ll discuss the individualized element of life insurance, and why changes may be needed based on underwriting, health status, age, and objectives.

Your Decision Point

Empowered with this information, you now have a choice.

You can use these guidelines to go down the straight and narrow to a policy that’s designed to be used.  Or you can take shortcuts and accept run-of-the-mill policies that will end up costing you more in the long run.

If you’re shopping for your first Privatized Banking policy or adding on another policy, you have the framework to go from overwhelmed to crystal clear on exactly what you want.  You’re able to make decisions quickly and easily, knowing how to focus on what’s most important instead of the minor details.

If you’re wishing you knew this a long time ago, and you already have a different type/design of life insurance, it’s not always a good idea to throw in the towel and start from scratch.  Let us help you through a strategy to take the next best steps, starting from where you are.

Build Your Time and Money Freedom

For more information on Specially Designed Life Insurance Contracts, get our free 20-minute crash course.

Every person’s story, path, journey, and outcomes are different, and how you start, fund, and use your Privatized Banking system will look different from person to person.

If you want to get started today, book a call with us to find out how.

If you have great income, but limited cash flow, you may need to free up cash flow or get started before you’re ready.  You can lock in your ability to start this strategy later with the right convertible term life insurance policy today.

If you’re already saving each month, but you want a better tool to get higher, tax-exempt growth and greater accessibility, let us help you determine how to implement this strategy in your own life and improve every area of your financial life in one simple move.  We’ll help you determine if you’re a fit for this strategy.

No matter where you are today, book a Strategy Call with us to find out the one thing you should be doing to accelerate time and money freedom.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

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You’re on the hunt for the best life insurance policy to use for Privatized Banking. For this, not just any policy will do. You want to buy exactly the right kind of life insurance to get cash you can use, earn uninterrupted compounding, 
Life insurance is a powerful product that can serve you in infinite ways at the same time.  But designing a life insurance policy in a way that fulfills its potential has become almost a lost art.

One type of policy, with particular high-performance modifications, does Privatized Banking best.  The special design ensures that you have high early cash value and maximum long-term growth while maintaining its tax advantages.

 


Why You’re Buying a Privatized Banking Policy
Let’s back up to gain some context.

You already have the cash to begin investing.  But instead of draining your savings to buy the investment, you want to maintain control of your capital.  You know that you can maximize the long-term efficiency of your whole personal economy by using the Privatized Banking Strategy.  With it, you get safety, growth, and access to your money.

To implement this strategy, you’ll first store your capital in a life insurance contract.

When you want to invest, you’ll borrow against your cash value, using a guaranteed loan feature.  And when you repay the loan, you have the flexibility to choose a pace that works for you.

Because you’re not using your capital, but collateralizing it, you’ll continue earning uninterrupted compound interest.  Even while you invest, giving you returns in two places at once.

Now that you’re ready to buy a policy to help you accomplish all that, what do you look for?
Your Questions About What Kind of Policy to Use for Privatized Banking, Answered
If you’ve ever spent a minute shopping for life insurance, the process can be downright overwhelming.  It’s easy to feel like the assortment of options is like Baskin Robbin’s 31 flavors. All might be good, but which one is best?

Today, we’ll answer your most important questions about Privatized Banking policies:

* What kind of life insurance policy do I need?
* What are the essentials to make sure the policy performs best?
* Can I use any cash value life insurance product?
* What makes the policy specially designed?
* How do I ensure it won’t take forever to build up cash value and I can use my cash quickly to invest in opportunities?

We’ll reveal the design of the ideal life insurance policy for Privatized Banking.  You’ll find out the three major types of life insurance, and why only one works for Privatized Banking.  You’ll discover the only kind of life insurance company you want to work with.  And you’ll learn what makes a policy specially designed so that it becomes a great place to store cash.

You’ll gain a map to label all the crucial components of a Privatized Banking policy.

Instead of being overwhelmed with minor details, you’ll know exactly what you want and what to focus on.

And you’ll be equipped with purchaser prowess to quickly and easily determine if a policy measures up, so you don’t buy a policy that underperforms.
Where Privatized Banking Fits into Your Cash Flow System
Privatized Banking with Specially Designed Life Insurance Contracts (SDLIC) is just one step in the greater Cash Flow System.

It fits into Stage 2, a part of keeping and protecting your money. clean 50:09
Turnkey Real Estate Investing in Memphis, TN, with Mid South Homebuyers – TMA 051 https://themoneyadvantage.com/mid-south-homebuyers-turnkey-real-estate/ Mon, 05 Nov 2018 10:00:11 +0000 https://themoneyadvantage.com/?p=3158 Get to know the team at Mid South Homebuyers.  This conversation will help you determine how and when turnkey rental real estate could help you invest for cash flow. Who Are Terry Kerr and Liz Nowlin Brody? Terry Kerr Terry Kerr was born in 1970 in Memphis Tennessee.  Except for some nomadic travel in his early twenties, has lived in Memphis his whole adult life. Terry enjoys water sports, hiking, and the Memphis Grizzlies with his family. He shares his life with his wonderful wife Elaine and two amazing kids, Amelia 17 and Andrew 13. Founder and CEO of Mid South Homebuyers, Terry fell in love with making ugly houses pretty in 2001 and set out to master the business of passing bargains on to bargain hunters. Over the last 15 years, Mid South Homebuyers has purchased, renovated, and sold 1,500+ single-family houses in Memphis to real estate investors across the US and the globe. As a turn-key seller, Mid South Homebuyers provides completely renovated investment property, with a built-in property management and maintenance team, to real estate investors who receive passive income while building wealth through real estate. Terry is fortunate to call Memphis Tennessee home, where the price-to-rent-ratios for investment property are the best in the country. He is extremely grateful to his incredible team for positioning Mid South Homebuyers as the premier turn-key seller in Memphis and the US. Mid South Homebuyers has renovated over 1.7 million sq. ft. of real estate in Memphis TN. Terry attributes the success of Mid South Homebuyers directly to the caring and passionate commitment of his incredible team of professionals who never stop trying to increase value and service for their investor partners. Liz Nowlin Brody Elizabeth Nowlin Brody is an avid real estate investor who has spent the last 16 years of her professional life working in multiple markets as a multi-unit property manager, a marketing director, a Realtor, a writer, and a public speaker. For the last 8, she's been working side by side with Terry Kerr building Mid South Homebuyers into one of the most successful turnkey providers in the U.S. Where Investing Fits into the Cash Flow System We love cash flow.  Cash flow today is the stepping stone for cash flow tomorrow. In the Cash Flow System, you first increase cash flow by keeping more of the money you make.  Then you protect your money.  Finally, you increase and make more. Investing is part of stage 3.  Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.   Conversation Highlights (Partial Transcript) Investments that Build Wealth Through Cash Flow [07:48] It's single-family, blue-collar real estate.  These are solid houses in solid neighborhoods.  Fortunately, about 52% of the Memphis population rent.  This gives us a really large pool of folks to work with. Here is the business model:  We’ll buy a house, do a full-blown renovation on the house. It's not a lipstick job. It's not just paint and carpet.  We rip off the roofs, gut the kitchens, gut the bathrooms, update the electrical, plumbing, new heating and air.  The houses are in better shape typically when we finished rehabbing than it was when it was first built, just because of higher-end finishes. And we provide the best value for the resident that exists in the Memphis market.  We have slightly below market rents, with the best rehab, and so we have the lowest turnover, and that's the key. We have the lowest turnover of any management company in Memphis, so the longest resident average stay.  Turnover is the biggest killer for folks who own investment property, so if you can keep people in the house and keep them from moving out, that's the ticket. There are a lot of things that go into making that possible.  In big, broad strokes, if the resident is happy and the resident stays, the owners make money. Why They Hand-Selected Their Market Segment Get to know the team at Mid South Homebuyers.  This conversation will help you determine how and when turnkey rental real estate could help you invest for cash flow.

Who Are Terry Kerr and Liz Nowlin Brody?

Terry Kerr

Terry Kerr was born in 1970 in Memphis Tennessee.  Except for some nomadic travel in his early twenties, has lived in Memphis his whole adult life. Terry enjoys water sports, hiking, and the Memphis Grizzlies with his family. He shares his life with his wonderful wife Elaine and two amazing kids, Amelia 17 and Andrew 13.

Founder and CEO of Mid South Homebuyers, Terry fell in love with making ugly houses pretty in 2001 and set out to master the business of passing bargains on to bargain hunters. Over the last 15 years, Mid South Homebuyers has purchased, renovated, and sold 1,500+ single-family houses in Memphis to real estate investors across the US and the globe.

As a turn-key seller, Mid South Homebuyers provides completely renovated investment property, with a built-in property management and maintenance team, to real estate investors who receive passive income while building wealth through real estate.

Terry is fortunate to call Memphis Tennessee home, where the price-to-rent-ratios for investment property are the best in the country. He is extremely grateful to his incredible team for positioning Mid South Homebuyers as the premier turn-key seller in Memphis and the US. Mid South Homebuyers has renovated over 1.7 million sq. ft. of real estate in Memphis TN.

Terry attributes the success of Mid South Homebuyers directly to the caring and passionate commitment of his incredible team of professionals who never stop trying to increase value and service for their investor partners.

Liz Nowlin Brody

Elizabeth Nowlin Brody is an avid real estate investor who has spent the last 16 years of her professional life working in multiple markets as a multi-unit property manager, a marketing director, a Realtor, a writer, and a public speaker. For the last 8, she’s been working side by side with Terry Kerr building Mid South Homebuyers into one of the most successful turnkey providers in the U.S.

Where Investing Fits into the Cash Flow System

Unique Ability InvestingWe love cash flow.  Cash flow today is the stepping stone for cash flow tomorrow.

In the Cash Flow System, you first increase cash flow by keeping more of the money you make.  Then you protect your money.  Finally, you increase and make more.

Investing is part of stage 3.  Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.

 

Conversation Highlights (Partial Transcript)

Investments that Build Wealth Through Cash Flow

[07:48] It’s single-family, blue-collar real estate.  These are solid houses in solid neighborhoods.  Fortunately, about 52% of the Memphis population rent.  This gives us a really large pool of folks to work with.

Here is the business model:  We’ll buy a house, do a full-blown renovation on the house. It’s not a lipstick job. It’s not just paint and carpet.  We rip off the roofs, gut the kitchens, gut the bathrooms, update the electrical, plumbing, new heating and air.  The houses are in better shape typically when we finished rehabbing than it was when it was first built, just because of higher-end finishes.

And we provide the best value for the resident that exists in the Memphis market.  We have slightly below market rents, with the best rehab, and so we have the lowest turnover, and that’s the key. We have the lowest turnover of any management company in Memphis, so the longest resident average stay.  Turnover is the biggest killer for folks who own investment property, so if you can keep people in the house and keep them from moving out, that’s the ticket.

There are a lot of things that go into making that possible.  In big, broad strokes, if the resident is happy and the resident stays, the owners make money.

Why They Hand-Selected Their Market Segment

[09:52] We’re looking for houses that need lots of work.

If a house just needs paint and carpet, there’s going to be so many folks offering and making bids on that property that we’re just going to be priced out. We’re going to get beat by a local that is going to buy it, paint it, put carpet in it, and manage it themselves.

We want the houses that other folks are like, holy cow, this roof’s been leaking for 10 years, and the investor who’s 90 years old, has owned this house forever, just decided to stop fixing stuff. That’s our market.

Since Memphis has 52% of the market renting, you can imagine all of the owner-operator landlords in this town that get to a point in their lives where they’re like, okay, you know, I’ve been managing these 20 or 30 houses forever.  I’m 75 years old, I don’t owe any money on any of these houses, I’m cash flowing like a bandit, but I’m tired of working, so they just sell their rental portfolios.

You’ll see that houses that may have been owned by one investor for 20 years, and they’ll get to a point in their lives where they want to liquidate, it will go to somebody else. The cycle will never stop in Memphis, fortunately, because we do have a blue-collar town. There are a lot of folks here that rent, and this is a cycle that’s been going on for years and years. Other cities in the US have our type of demographic, but I’m just fortunate to be born and raised in a town where it’s conducive to cash flow.

The Definition of Turnkey

[12:17] A big part of the definition of turnkey is a continuing, ongoing relationship with the seller of the property after you have closed, particularly with your managers and your accountability being all in one place.

The horror stories that are out there are about people that bought a house, were told that it was an excellent condition and that the rent was $800.  It’s handed off to a third-party management company. After three or four months of vacancy, they’re informed that the only way it will possibly rent is to drop the rent to $750 and then repair bills are nonstop rolling in.  Then you’ve got a manager pointing at a seller, and a seller pointing at a manager, and you’re 2000 miles away, and not really sure what to do.

Turnkey is getting away from that, having all of your accountability in one place about how this property is going to perform, a proven track record with happy investors already working with that company. Ultimately, a very passive investment is the heart of it all, where you’re ultimately on the beach, not worrying about your properties at all.

Why Your Due Diligence as the Investor is Critical

[13:53] Whether it’s in Memphis or Detroit, if someone’s investing, you want to find somebody who’s got a proven track record … or there’s a lot of guesswork.

You can pull up rents on Zillow or call the management company that you’re going to be working with. Ask them questions like, what is your longest vacancy?  Why is that vacant?  What’s the most ideal property? What’s the stuff that you want to stay away from? Really dig in. And go to visit …

As much as we want to work with anyone that’s a good fit for us, we encourage folks, if they can, to make the time to go out and shake the hands of the folks that they’re going to be doing business with and really dig in and ask the hard questions.

Our due diligence questions are available for anyone to download and use to interview any turnkey seller.

What Sets Mid South Homebuyers Apart?

[15:26] At the heart of it, it’s about providing value.  You’ve got to provide a good value to the resident, which means the rent’s got to be placed right. The property’s got to be in an excellent condition, so the repair bills don’t kill the owner.

In the beginning, there are so many kinks to be ironed out that you work for free for the first three years of the business, easily.  You’re figuring out what neighborhoods work, what neighborhoods dont work.

Our goal is ultimately to provide the highest cash flow possible, and the sweet spot that we settled on here in Memphis was between $59,000 and 95,000, give or take a little.  But Terry got to that point by under-investing in a little bit too rough of markets because the numbers looked great on paper.  He ended up sleeping in houses, and if you have to sleep in the house to prevent people from breaking in, you’re in the wrong neighborhood …

You’ve got to cut your teeth and figure it out.  The median home price in Memphis is $130,000, and folks out of state are shocked by the affordability here and how quickly you can be in owner occupant territory.

At the end of the day, there are hidden reasons that some properties don’t make as much money.

Mid South Homebuyers Paid Strong Cash Flow Through the Crash of 2008

[17:59] I love talking about the crash of 2008.  Looking at it, obviously none of us know exactly where we are in the cycle right now, but it’s clear that it’s is warming up and definitely getting hotter.

I bought a primary residence here two years ago. The cool thing about buy and hold is that I don’t have to worry about where we’re at in the cycle, because I know the cycle will ultimately even out for me to be profitable. Thinking about home buying in general, in a residence, you can get stuck.

I look back in 2007 or so, Mid South Homebuyers was selling a totally renovated house that rented for $675 for roughly $55,000. We saw that rents and occupancy did not suffer in the crash, luckily. We’re really grateful for that.

The Focus on Cash Flow

[18:50] I did the math, and if I bought from Mid South Homebuyers in 2007, it was roughly $45,000 in gross cash flow that I would have made.  Of course, that mortgage is fixed.Terry Kerr and Liz Nowlin Brody - Mid South Home Buyers

Would I have been upset that I was $10,000 upside down the next year?  It’s a bummer, but we didn’t sell to anyone in 2007 that was intending to sell in 2008 or 2009.  It’s a 10- to 20-year investment.

What I love about it is that it weathers the market.  We were glad to see what happened here in Memphis was that so many former homeowners flooded into the rental market.  The homeless population didn’t spike anywhere with the crash.  You just had a huge shift, and it really propped up rental demand.

We never had a single foreclosure.  None of our investors have ever had a foreclosure, and rents and occupancy stayed strong.

The property values took a dip, but the cash flow didn’t take a dip.  It remained the same. And now the properties are worth more than ever.

Memphis is definitely a buy and hold market.  Folks don’t come to Memphis because of the awesome appreciation. Yeah, we appreciate a little bit. But Memphis is cash flow town. And thank goodness for it.

It meant a lot to me that if you gave me a time travel ticket, and right now I could write a check from the $14,000 down payment that $55,000 house in 2008 would have been and swap it for all that cash flow. The fact that I would hop on that in a minute to buy a house in the worst time in American history to buy a house – that gives me personally as an investor a sense of comfort.

Current Inventory

[21:49] Right now, we’re rehabbing 83 houses.  From the day we put a house under contract to purchase, it takes about 30 days to buy it. Then it takes us a couple of months to rehab it. Then we get the appraisal done.  We typically sell them around the 90- or 100-, maybe 110-day mark. We’ll own a property for maybe five months at the longest.

I’m going to buy, rehab and sell about 450 houses this year.

I currently have 107 houses under contract with investors.

Mid South Homebuyers Process

[23:00] We purchase the property, we rehab the property, and then we sell the house in a completely renovated state. And then we also provide a one-year bumper-to-bumper warranty on the whole house. And then, of course, our property management company manages the house for our investors that have purchased the property. We just send them the rent.

[25:17] We’re proud to be able to offer a real estate investment that pretty much cash flows from the day you buy it because it’s already fixed up.

How Mid South Homebuyers Maintains High Occupancy and Low Vacancy Rates

[25:52] We’re staffed up in the repair, leasing, and resident retention departments.

We always ask an incoming applicant, “Why are you leaving your current management company?”  Nine times out of 10 they say; my landlord won’t fix anything.

With our business model, there’s not a lot to fix, because we’ve already completely rehabbed the house.  However, if an air conditioner does break, or a water heater does go out, or there is a roof leak, we’re staffed up.  It’s easy for us to get someone out there quick because all of the technicians that maintain the repairs on the rental property we’re managing are the same technicians that are doing the installations on all the houses we’re rehabbing.  Since we employ these folks as W-2 employees, we don’t have to call a plumbing company or a handyman.  We just schedule it within our servicing department and put the repairs at the front of the list. And if the if the rehab has to take six hours longer because we’re fixing a water heater across town, then so be it.

Earlier I mentioned value to the resident.  We provide the nicest house, excellent communication, quick turnaround if there were a repair, and under-market rents.  That’s why we have the longest resident stay in Memphis.

When we ran a report about six months ago, and I know where we’ve had an uptick since then, our average resident stay was three years and four months. In Memphis, the average resident stay is right at two years, so we’re way out front.  We may not make as much money per property as another management company, but no one’s leaving.

We don’t have the retention issue with investors leaving us, and we don’t have retention issue with residents leaving us.

Lifetime Vacancy Guarantee

[28:14] When there is the eventual turnover, we will average between 28.67 and 29.2 days from move out to move in.

A resident does not move in the day they call, the day they apply, the day they tour, or the day they put their deposit down. So many things have happened so fast: maintenance, the lawn mowed, signs dropped, and so many little things.

We have this lifetime vacancy guarantee that’s kind of unusual.  Internally, we all think, how would you really have a 90-day vacancy?  I speak to so many investors that have had 100+ day vacancies.  If you’re already a week late on the maintenance, a week late like dropping the signs, your stack is full of return calls from potential renters, it’s so easy for each little process to slow down.

Optimized for Efficiency

[29:44] We systematized everything that we do to work on efficiency.

The day a resident moves out, that’s updated by our leasing team, and a pin drops on our rover map. Our rovers are the guys that are out there dropping or pulling for-rent signs, taking photos of the property, delivering late notices, etc.

Everyone’s managed through this internal proprietary system that we’ve built.  All of our team members are working in their specific piece of the business and updating what they’re doing throughout the day. Depending on what one person does, it puts the ball in somebody else’s court.

When our team members come into work, they don’t have to wonder or remember what they need to do.  They just use their energy on actually performing the task. That’s all the way across the board from leasing, collections, rehabbing the houses, the different pieces of the rehab: the electrical, mechanical, plumbing, everything we know how long it should take.

If a piece doesn’t get performed in the amount of time it should take, it sends an email to the person who’s responsible for that task. And if it’s still not updated within another 24 hours, it will send them another email and copy their manager. The managers don’t get copied because our team knows what they’re supposed to do. And the system makes it easy. It makes the working environment less stressful.

Property Management Fees

[32:52] We don’t think it’s fair for us to get paid if the owner’s not getting paid.  That being said, we’re not going to charge a set fee and get paid regardless of what kind of rent comes to the front door. If the owner eats, we’re going to eat.  If they don’t eat, we’re not going to either.

Property management companies tend to be feeding from the opposite side of the trough as the investor. That can pose a problem, and this is one of the reasons why it’s cool to have all the accountability in one place.

If you’re a turnkey seller that’s been doing it right, you have a selfish reason to make the property perform.  You want the owner to come back and buy more property. As a property management company, it’s all about providing value.

[34:14] We have the lowest fees in town. We don’t charge a whole month’s rent to rerent the property. There’s a 10% fee on the actual rent, and then we charge half of the first month’s rent anytime we fill the property.

I’m not sure about other markets, but in Memphis, the average property management company charges a whole month’s rent to refill the properties.  We only charge a half a month’s rent to refill the properties. A lot of property management companies charge a vacant fee or marketing fee on top of the whole month’s rent, and we absorb that.

Investor Returns

[48:00] It depends on whether someone pays cash or if they finance. If you’re leveraging with financing, you’re going to get a better return than if you pay cash.  Obviously, you’re going to get a lot more cash flow if you pay cash, but your cash on cash returns are going to be less. Everyone calculates ROI differently.  Do you do use appreciation, do you use principal pay down, so I just stopped talking about ROI, because really it’s all about cash flow.

Everyone calculates ROI differently.  Do you do use appreciation?  Do you use principal pay down?  I just stopped talking about ROI, because really it’s all about cash flow.

On our website, there’s a “customize my cash flows” section, where you can click on your purchasing option.  Either all-cash purchase, financing, the down payment, interest rate, and you can include or exclude property management, you can include or exclude insurance.  We allow folks to customize the way they think about ROI and get their own number.

We run ROIs that we show on the website based off what I would call a normal month.  A normal month is rent paid in full, minus management, minus your mortgage payment. That’s what 36 months out of 38 months look like for me, as a Mid South Homebuyers customer. Once you add property management, our financed ROIs are 26 to 29%. The only thing that’s excluding is maintenance and vacancy, which is crazy affordable and low with us.

For a cash purchase, it’s in the 12 to 14% range the way we look at it, which is down payment versus cash flow after taxes, insurance, and debt service.  I’ve seen people push it way higher with appreciation and tax benefits.

The Greatest Lessons They’ve Learned

[52:15] There is such a thing as too much opportunity. Get focused on what you want and then do it.  Then analyze the deal and look at look at what went right and look at what went wrong.  Then do it again.

I think the best businesses are built, whether that business is us as a flip company or an individual investor who is buying a house for cash flow, when you find something that you can repeat as an assembly line and do it over and over and over again.

It’s focus.  Whether you want to buy, fix and hold yourself, or if you want to buy from a turnkey seller, or if you want to flip retail, whatever it is you want to do, don’t go into something unless it’s duplicatable.

You want every partner of a deal to want to do that deal again. What changed my world was that he (Terry) needed the lender that loaned our investor the money to be happy, the guys swinging hammers on that investor’s house, and the renter and the employee that rented it.  He wanted each single part of that deal to want to do it again, and he worked to ensure that along the way.  He’s done that successfully, and it’s created so much momentum.

Other Topics Discussed

  • Attracting top talent and creating a great team culture, leading to low employee turnover.
  • Investors like working with Mid South Homebuyers so much that they often become repeat buyers.
  • Why Mid South Homebuyers commitment to not charge application fees increases applicant volume and fills properties faster.
  • Investor resources include the
    • Due Diligence Report
    • Insider knowledge on the best investment lenders nationwide to get the best closing costs and interest rates
    • Great relationships with a closing attorney and landlord-specific insurance company
    • A designated point of contact who checks in every week with investors under contract with a status update
  • Mid South Homebuyers is working backward to get you the highest cash flow and most passive investment possible.
  • Mid South Homebuyers guarantees include
    • 1-year warranty
    • 90-day rent guarantee

Invest with Mid South Homebuyers

[51:00] Email Liz@midsouthhomebuyers.com.  My team is the go-to for everything.

Visit midsouthhomebuyers.com, which is completely up to date with our inventory.  You can see our actual numbers, pricing, rent, the renovations…

You can click through all those houses on the website.  You’ll start seeing how the kitchens are all the same, the azalea bushes, the shingles.  You’ll really get a sense for who we are.

You can download our management agreement from the website. You can download our lease. We really pride ourselves on transparency.  Our philosophy’s up there.

My team can get folks that are interested started really easily.

Create Your Time and Money Freedom

Do you want to begin building capital, putting it to work, and accelerating Time and Money Freedom?  To find out the one thing you should be doing to increase your cash flow, contact us today.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

]]> Get to know the team at Mid South Homebuyers.  This conversation will help you determine how and when turnkey rental real estate could help you invest for cash flow. - Who Are Terry Kerr and Liz Nowlin Brody? Terry Kerr


Who Are Terry Kerr and Liz Nowlin Brody?
Terry Kerr
Terry Kerr was born in 1970 in Memphis Tennessee.  Except for some nomadic travel in his early twenties, has lived in Memphis his whole adult life. Terry enjoys water sports, hiking, and the Memphis Grizzlies with his family. He shares his life with his wonderful wife Elaine and two amazing kids, Amelia 17 and Andrew 13.

Founder and CEO of Mid South Homebuyers, Terry fell in love with making ugly houses pretty in 2001 and set out to master the business of passing bargains on to bargain hunters. Over the last 15 years, Mid South Homebuyers has purchased, renovated, and sold 1,500+ single-family houses in Memphis to real estate investors across the US and the globe.

As a turn-key seller, Mid South Homebuyers provides completely renovated investment property, with a built-in property management and maintenance team, to real estate investors who receive passive income while building wealth through real estate.

Terry is fortunate to call Memphis Tennessee home, where the price-to-rent-ratios for investment property are the best in the country. He is extremely grateful to his incredible team for positioning Mid South Homebuyers as the premier turn-key seller in Memphis and the US. Mid South Homebuyers has renovated over 1.7 million sq. ft. of real estate in Memphis TN.

Terry attributes the success of Mid South Homebuyers directly to the caring and passionate commitment of his incredible team of professionals who never stop trying to increase value and service for their investor partners.
Liz Nowlin Brody
Elizabeth Nowlin Brody is an avid real estate investor who has spent the last 16 years of her professional life working in multiple markets as a multi-unit property manager, a marketing director, a Realtor, a writer, and a public speaker. For the last 8, she's been working side by side with Terry Kerr building Mid South Homebuyers into one of the most successful turnkey providers in the U.S.
Where Investing Fits into the Cash Flow System
We love cash flow.  Cash flow today is the stepping stone for cash flow tomorrow.

In the Cash Flow System, you first increase cash flow by keeping more of the money you make.  Then you protect your money.  Finally, you increase and make more.

Investing is part of stage 3.  Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.

 
Conversation Highlights (Partial Transcript)
Investments that Build Wealth Through Cash Flow
[07:48] It's single-family, blue-collar real estate.  These are solid houses in solid neighborhoods.  Fortunately, about 52% of the Memphis population rent.  This gives us a really large pool of folks to work with.

Here is the business model:  We’ll buy a house, do a full-blown renovation on the house. It's not a lipstick job. It's not just paint and carpet.  We rip off the roofs, gut the kitchens, gut the bathrooms, update the electrical, plumbing, new heating and air.  The houses are in better shape typically when we finished rehabbing than it was when it was first built, just because of higher-end finishes.

And we provide the best value for the resident that exists in the Memphis market.  We have slightly below market rents, with the best rehab, and so we have the lowest turnover, and that's the key. We have the lowest turnover of any management company in Memphis, so the longest resident average stay.  Turnover is the biggest killer for folks who own inve...]]>
Bruce Wehner & Rachel Marshall clean 58:12 Early Tap of the 401(k) Replaces Homes as American Piggy Bank (Reviewed) – TMA 050 https://themoneyadvantage.com/early-tap-of-401k-replaces-homes-as-american-piggy-bank/ Mon, 29 Oct 2018 09:00:58 +0000 https://themoneyadvantage.com/?p=3111 Piggy banks may seem best suited to our childhood era.  We mentally organize them with wagon-rides, tooth fairies, and the endless pencil-sharpening of early grade school.  But as adults, we need and use piggy banks; they just come in a different form.  When people need money for life’s setbacks and lean times, one of the most accessed “piggy banks” is the 401(k), says Richard Rubin and Margaret Collins, in the Bloomberg article, Early Tap of 401(k) Replaces Homes as American Piggy Bank. Financial products are designed for a specific job.  They may disintegrate when called upon for side jobs outside their area of expertise.  The 401(k), intended for retirement planning, presents serious concerns when doubling as a piggy bank.  Taxes and penalties add hardship in some of life’s darkest financial times when money is tight. This article addresses the market and social forces that caused this phenomenon of this shift in asset choice.  It honestly assesses the problems with using the 401(k) as a piggy bank and proposes solutions. In addition to discussing the points of this article, we’ll separate fact from opinion.  We'll help you think through the savings and protection component of your personal economy.  Then, you’ll be able to progress toward time and money freedom, while best handling financial challenges along the way.   Why You Need a Piggy Bank Just because you’ve outgrown the childhood scrapes, bruises, and dirt under the fingernails doesn’t mean you’ve outgrown the need for a piggy bank.  One of the most predictable financial needs is to have accessible cash that you can save for emergencies and opportunities. When you need to replace tires, have medical bills to pay, a child’s wedding or college, or want to buy a rental property, where will you get the cash? Having access to cash is such a consistent and guaranteed need.  By planning ahead and storing cash that will be there when you need it, you’ll bolster your peace of mind. But without available cash, you’ve got to use tools that aren’t ideal, like home equity, retirement savings, or a credit card. The Problems with Using a 401(k) as an Emergency Fund The Money is Not All Yours When you put money into a 401(k), your contributions are tax-deferred.  You get a current-year tax break.  But it’s not that you don’t owe tax, it’s that you owe it later.  And when you owe it later, you’ll pay tax on the amount you put in AND on the growth. This taxation is often misunderstood, leading people to believe the balance they see on their account statement is all money that belongs to them.  However, a portion of that money belongs to the IRS, meaning that what you see is not what you get. For example, if you have a $100,000 balance in your 401(k), and land in the 32% tax bracket, $32,000 belongs to Uncle Sam, leaving you with just $78,000. A Penalty to Use Your Money Because the role of the 401(k) is retirement planning, there are incentives to keep your money in the account until retirement.  This amounts to restrictions on using your money today, and more rules to follow in the future. If you take money out before the age of 59 ½, you’ll pay an additional 10% penalty, in addition to the tax. There are some exceptions, where you won’t owe the penalty on 401(k) withdrawals, such as if you’re taking money out for a disability, certain medical expenses, or leaving your job after age 55.  For IRAs, the rules are a bit looser, allowing you to also use a withdrawal for higher education or first-time home buying without penalty. Then, you have an 11-year window to use your money as you desire. And at age 70 ½, you have required minimum distributions (RMDs), forcing you to take money out (and pay taxes) each year. Penalties in the Billions While withdrawing from qualified plans may seem like no big deal, the penalty exposes the grand nature of this epidemic. The Internal Revenue Service collected $5.7 billion in 2011 from penalties, Piggy banks may seem best suited to our childhood era.  We mentally organize them with wagon-rides, tooth fairies, and the endless pencil-sharpening of early grade school.  But as adults, we need and use piggy banks; they just come in a different form.  When people need money for life’s setbacks and lean times, one of the most accessed “piggy banks” is the 401(k), says Richard Rubin and Margaret Collins, in the Bloomberg article, Early Tap of 401(k) Replaces Homes as American Piggy Bank.

Financial products are designed for a specific job.  They may disintegrate when called upon for side jobs outside their area of expertise.  The 401(k), intended for retirement planning, presents serious concerns when doubling as a piggy bank.  Taxes and penalties add hardship in some of life’s darkest financial times when money is tight.

This article addresses the market and social forces that caused this phenomenon of this shift in asset choice.  It honestly assesses the problems with using the 401(k) as a piggy bank and proposes solutions.

In addition to discussing the points of this article, we’ll separate fact from opinion.  We’ll help you think through the savings and protection component of your personal economy.  Then, you’ll be able to progress toward time and money freedom, while best handling financial challenges along the way.

 

Why You Need a Piggy Bank

Just because you’ve outgrown the childhood scrapes, bruises, and dirt under the fingernails doesn’t mean you’ve outgrown the need for a piggy bank.  One of the most predictable financial needs is to have accessible cash that you can save for emergencies and opportunities.

When you need to replace tires, have medical bills to pay, a child’s wedding or college, or want to buy a rental property, where will you get the cash?

Having access to cash is such a consistent and guaranteed need.  By planning ahead and storing cash that will be there when you need it, you’ll bolster your peace of mind.

But without available cash, you’ve got to use tools that aren’t ideal, like home equity, retirement savings, or a credit card.

The Problems with Using a 401(k) as an Emergency Fund

The Money is Not All Yours

When you put money into a 401(k), your contributions are tax-deferred.  You get a current-year tax break.  But it’s not that you don’t owe tax, it’s that you owe it later.  And when you owe it later, you’ll pay tax on the amount you put in AND on the growth.

This taxation is often misunderstood, leading people to believe the balance they see on their account statement is all money that belongs to them.  However, a portion of that money belongs to the IRS, meaning that what you see is not what you get.

For example, if you have a $100,000 balance in your 401(k), and land in the 32% tax bracket, $32,000 belongs to Uncle Sam, leaving you with just $78,000.

A Penalty to Use Your Money

Because the role of the 401(k) is retirement planning, there are incentives to keep your money in the account until retirement.  This amounts to restrictions on using your money today, and more rules to follow in the future.

If you take money out before the age of 59 ½, you’ll pay an additional 10% penalty, in addition to the tax. There are some exceptions, where you won’t owe the penalty on 401(k) withdrawals, such as if you’re taking money out for a disability, certain medical expenses, or leaving your job after age 55.  For IRAs, the rules are a bit looser, allowing you to also use a withdrawal for higher education or first-time home buying without penalty.

Then, you have an 11-year window to use your money as you desire.

And at age 70 ½, you have required minimum distributions (RMDs), forcing you to take money out (and pay taxes) each year.

Penalties in the Billions

While withdrawing from qualified plans may seem like no big deal, the penalty exposes the grand nature of this epidemic.

The Internal Revenue Service collected $5.7 billion in 2011 from penalties, meaning that Americans took out about $57 billion from retirement funds before they were supposed to.

Required Repayments Limit Flexibility

If you take the money out as a withdrawal, you pay the tax right away, at whatever tax bracket you find yourself in.

However, if you took the money out as a loan, you won’t pay the tax at that time, as long as you repay the loan. But you will pay back the loan with taxed dollars, only to pay tax again when you take the money out later.  A double tax.

If you leave your employer for any reason with an outstanding 401(k), you’ll owe the full balance back, plus interest, usually within 60 days.  And what happens if you don’t pay?  Then your loan will be considered a distribution, which will require you to pay the taxes and penalties right away.

A Retirement Crisis

The article focuses on the impact that using the 401(k) as a piggy bank has in worsening the impending retirement crisis.

It does this by breaking down the impact to future monthly income.  It cites younger workers are the ones who cash out at the highest rates, going on to say:

A 30-year-old who cashes out $16,000 could lose $471 a month in retirement income cash flow by not leaving it invested in a retirement account, assuming retirement at age 67 and death at age 93, according to a Fidelity analysis. That scenario assumed a 4.7 percent annual return and a 401(k) balance at retirement of $87,500. – Early Tap of 401(k) Replaces Homes as American Piggy Bank

The Systemic Financial Crisis in a Different Light

What’s left unsaid is that the real problem is the lack of guarantees and accessibility that make the 401(k) a poor place to store cash.

#1: Compartmentalized Money

It is designed to be used for one thing, and one thing only: retirement.  It’s not set up to handle your emergency and opportunity fund needs over time before you get there.Article Review - Early Tap of the 401k Replaces Homes as American Piggy Bank

#2: Lack of Accessibility

We discussed that your full account balance can be misleading, since the tax is owed out of this account, leaving you with less than what’s you see on your account statement.

What we didn’t mention yet is that even after you shave down to just what belongs to you, you still can’t use all of that.

If you’re planning to use a 401(k) loan to not disturb the tax and penalty gods, you can borrow up to 50% of your vested account balance, up to a maximum of $50,000.  So, if you had a balance of $500,000 and $150K of that was designated for the tax bill, of the remaining $350K, you could only borrow $50K. That leaves $300K of money that belongs to you, completely inaccessible unless you want to pay the taxes and 10% penalties today, of course.

And if you did decide to withdraw it all, your plan administrator would mail you a check for about 70% of your account balance, or $350K.  The other $150K would be allotted to cover the 10% penalty and 20% for taxes.

Kind of seems like an impossible puzzle that winds you up in trouble, no matter which option you choose, doesn’t it?

#3: Lack of Guarantees

When you put money in a jar for a rainy day, you expect it to be there when you need it.

But when you put money into a 401(k), it’s usually invested in the stock market, with no guarantees for what your money will grow into.  Sure, there’s always an advertised average rate of return, but it takes a discerning eye to understand what that means.

For instance, a 6% average return means that, considering the cumulative past gains and losses over a time period, divided by the number of years accounted for, you averaged 6% return each year.  But it would be entirely incorrect to assume you will get a 6% return each year going forward (or anything remotely close to that).

Why?  Two reasons.  First, historical averages do not guarantee future results.  Second, there’s a huge difference between average returns and actual returns.

Average vs. Actual Returns

A positive average return does not mean your account will continue to rise in value.  It doesn’t even guarantee that you’ll have more money at the end than you started with.  In fact, drops in the market can cause account losses that wipe out gains.

If that sounds crazy, consider an account with $100K, that first loses 10% and then gains 10%.  Your average return is 10%, but look at your account value.  Your balance would drop down to $90K, and then bounce back up to $90.9K.  Considering you had gains and losses with equal percentages, why didn’t your account recover back to the starting point?  That’s because you need a much higher gain to recover from a loss.

Actually, you need a 100% gain to recover from a 50% loss, a 25% average return, just to get back to the same starting point, a real return of 0%.  A 90% loss would require a 900% gain to recover, a 446% average return that lands you back with exactly the same cash you started with.

What exactly do average rates of return mean?  In truth, not much at all.

The Shift from Using Home Equity as a Piggy Bank

So, if there are so many problems, why did people start using 401(k)s for their emergency fund, anyway?

Before using qualified plans as piggy banks, Americans used their homes to save money for a rainy day.

But here’s what happened:

For decades, Americans’ homes were their piggy banks. As values rose, they refinanced or took out second mortgages. Since the housing collapse of 2008, that’s often no longer an option. Taking money from a 401(k) — and worrying about the consequences later — became a more attractive alternative and a record number of Americans made early withdrawals in 2010.

‘They didn’t have access to the home equity that they had in the past,’ Cramer said. ‘And families looked around for what was left, and they actually drained the value from the 401(k).’ – Early Tap of 401(k) Replaces Homes as American Piggy Bank

Suggestions to Fix the Problem

There’s been debate as to what legislation can be enacted to fix the problems created by using 401(k) money early, with sharp disagreement about the best course of action.

One camp proposes higher penalties for using money early to discourage cashing out.

The other suggests lower or no penalties, making it easier to use your money.

Instead of either, we believe that financial freedom can only be achieved through personal responsibility and taking ownership of the principles of wealth creation.  No amount of government legislation can fix a problem that government legislation paved the way to create in the first place.

The One Question We Should Ask Instead to Gain Control

In fact, the real question is this: should we be compartmentalizing our money to “plan for retirement” at all?

You can’t make improvements to something that doesn’t work.  You need to get a whole new lens to solve the problem, so you can create a brand-new solution.

Planning for retirement is planning to accumulate a big enough pile of cash to live off the interest and hope it doesn’t run out.  The concept is fraught with uncertainty.  Instead, design your whole personal economy to create time and money freedom.

The first step is keeping more of the money you make to increase your cash flow.  Next, protect your wealth.  One giant step in this stage is building an emergency/opportunity fund.  This account is available to use for life’s setbacks, big-ticket items, and the capital to invest in assets that increase your cash flow.

And finally, put your money to work to create multiple streams of income.

A Better Alternative to Store Cash

In your personal life, ask yourself, what financial needs do I need to solve?  Then, how can I get more certainty and accessibility?

Go back to the drawing board to find the best piggy bank around.

We’ve found that Specially Designed Life Insurance Contracts (SDLIC) fulfills your emergency and opportunity fund needs better than any other tool we’ve compared it to.   It has guaranteed growth.  You can access it with a guaranteed loan feature.  You determine your payback schedule.  And you get uninterrupted compounding, even while you use your money.

This tool helps you use a Privatized Banking system, unlocking every area of your financial life.

For more information on Specially Designed Life Insurance Contracts, get our free 20-minute crash course here.

Contact us to find out the one thing you should be doing today to optimize your personal economy and accelerate time and money freedom.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

]]>
Piggy banks may seem best suited to our childhood era.  We mentally organize them with wagon-rides, tooth fairies, and the endless pencil-sharpening of early grade school.  But as adults, we need and use piggy banks; they just come in a different form.... Early Tap of 401(k) Replaces Homes as American Piggy Bank.

Financial products are designed for a specific job.  They may disintegrate when called upon for side jobs outside their area of expertise.  The 401(k), intended for retirement planning, presents serious concerns when doubling as a piggy bank.  Taxes and penalties add hardship in some of life’s darkest financial times when money is tight.

This article addresses the market and social forces that caused this phenomenon of this shift in asset choice.  It honestly assesses the problems with using the 401(k) as a piggy bank and proposes solutions.

In addition to discussing the points of this article, we’ll separate fact from opinion.  We'll help you think through the savings and protection component of your personal economy.  Then, you’ll be able to progress toward time and money freedom, while best handling financial challenges along the way.

 


Why You Need a Piggy Bank
Just because you’ve outgrown the childhood scrapes, bruises, and dirt under the fingernails doesn’t mean you’ve outgrown the need for a piggy bank.  One of the most predictable financial needs is to have accessible cash that you can save for emergencies and opportunities.

When you need to replace tires, have medical bills to pay, a child’s wedding or college, or want to buy a rental property, where will you get the cash?

Having access to cash is such a consistent and guaranteed need.  By planning ahead and storing cash that will be there when you need it, you’ll bolster your peace of mind.

But without available cash, you’ve got to use tools that aren’t ideal, like home equity, retirement savings, or a credit card.
The Problems with Using a 401(k) as an Emergency Fund
The Money is Not All Yours
When you put money into a 401(k), your contributions are tax-deferred.  You get a current-year tax break.  But it’s not that you don’t owe tax, it’s that you owe it later.  And when you owe it later, you’ll pay tax on the amount you put in AND on the growth.

This taxation is often misunderstood, leading people to believe the balance they see on their account statement is all money that belongs to them.  However, a portion of that money belongs to the IRS, meaning that what you see is not what you get.

For example, if you have a $100,000 balance in your 401(k), and land in the 32% tax bracket, $32,000 belongs to Uncle Sam, leaving you with just $78,000.
A Penalty to Use Your Money
Because the role of the 401(k) is retirement planning, there are incentives to keep your money in the account until retirement.  This amounts to restrictions on using your money today, and more rules to follow in the future.

If you take money out before the age of 59 ½, you’ll pay an additional 10% penalty, in addition to the tax. There are some exceptions, where you won’t owe the penalty on 401(k) withdrawals, such as if you’re taking money out for a disability, certain medical expenses,]]>
Bruce Wehner & Rachel Marshall clean 36:27
Privatized Banking: The Golden Key that Unlocks Your Financial Life – TMA 049 https://themoneyadvantage.com/privatized-banking-unlocks-your-financial-life/ Mon, 22 Oct 2018 09:00:28 +0000 https://themoneyadvantage.com/?p=3050 You play a big game, and you want your money to keep pace.   Being in control is essential to you, and your money is no exception.  You don’t have time to be strung along every year, hoping for better returns.  Instead, you want to be able to count on your money to give you confidence and certainty. You want the cash available to be able to invest in what you understand and control – what matters most to you.  Because you’re discerning and savvy, you don’t place stock in magic bullets.  Instead, you want a system that works as long as you live, improving over time like a fine wine.  Privatized Banking fits your criteria.  Privatized Banking is a golden key that unlocks and improves every other area of your financial life.  With it, you reduce taxes, increase safety and liquidity, while earning competitive growth with built-in contractual guarantees.  This translates to more peace of mind.  And that elevates your ability to perform at the highest level in your life and business.     Privatized Banking Is Your Ideal Solution Today’s article will show you how Privatized Banking is the ideal solution that you’ve never heard of.  We’ll walk you through the building blocks and what it does for you.  Then, we’ll show you this system is a strategy that you do, not just a financial product you buy. We’ll answer: What is Privatized Banking? Why is it a better place to store my cash? How does it put me in control? How does it improve my financial efficiency? And how does it speed up my path to time and money freedom? You’ll gain a fresh perspective on this historically-sound asset to see this ancient relic resurface as a modern marvel.  Instead of a boring, one-dimensional insurance product, you’ll recognize the craftsmanship and innovative architecture of this financial Swiss army knife.  And you’ll be able to cut through the myth, controversy, and debate to appreciate the power of this financing and wealth creation engine. Where Privatized Banking Fits into Your Cash Flow System Privatized Banking is just one step in the greater Cash Flow System. It’s the peanut butter to your cash flow sandwich. Privatized banking is sandwiched between Stage 1, where you’re being more efficient and keeping more money you already make, and Stage 3, where you’re increasing cash flow from your investments.  It’s what makes the sandwich a sandwich, not just two slices of bread. While it’s nestled into Stage 2, Protection, it also improves everything else around it.  Privatized Banking helps you keep more of the money you make in Stage 1, amplify your cash-flowing asset strategy in Stage 3, and accelerate your Time and Money Freedom. What Do You Want Your Money to Do? Before we delve into what Privatized Banking is and how it works for you, it’s important to be very clear on what you’re trying to accomplish. Here’s a quick job description you ask your money to perform for you: Create cash flow from assets like real estate and businesses Provide safety and guarantees on money you save Model the bank by owning and controlling capital Savings that grows at a competitive rate of return Earn uninterrupted compound interest, even when you spend your money Be a place to hold cash while it’s waiting to be used in opportunities Limit money leaks like interest, taxes, and opportunity costs Give you peace of mind so you can perform at the highest level Why Privatized Banking Is the Perfect Hire Privatized Banking doesn’t just do one thing better to make small improvements to your financial life. This strategy is the catalyst for a transformation in your financial life that gives you the opportunity to create time and money freedom. If Privatized Banking were a job candidate applying for the position above, here's its list of qualifications and abilities – what it can do. And, rather than doing one job at a time, Privatized Banking performs all of these 13 jobs at the same t... You play a big game, and you want your money to keep pace.   Being in control is essential to you, and your money is no exception.  You don’t have time to be strung along every year, hoping for better returns.  Instead, you want to be able to count on your money to give you confidence and certainty. You want the cash available to be able to invest in what you understand and control – what matters most to you.  Because you’re discerning and savvy, you don’t place stock in magic bullets.  Instead, you want a system that works as long as you live, improving over time like a fine wine.  Privatized Banking fits your criteria.

Privatized Banking is a golden key that unlocks and improves every other area of your financial life.  With it, you reduce taxes, increase safety and liquidity, while earning competitive growth with built-in contractual guarantees.  This translates to more peace of mind.  And that elevates your ability to perform at the highest level in your life and business.

 

 

Privatized Banking Is Your Ideal Solution

Today’s article will show you how Privatized Banking is the ideal solution that you’ve never heard of.  We’ll walk you through the building blocks and what it does for you.  Then, we’ll show you this system is a strategy that you do, not just a financial product you buy.

We’ll answer:

  1. What is Privatized Banking?
  2. Why is it a better place to store my cash?
  3. How does it put me in control?
  4. How does it improve my financial efficiency?
  5. And how does it speed up my path to time and money freedom?

You’ll gain a fresh perspective on this historically-sound asset to see this ancient relic resurface as a modern marvel.  Instead of a boring, one-dimensional insurance product, you’ll recognize the craftsmanship and innovative architecture of this financial Swiss army knife.  And you’ll be able to cut through the myth, controversy, and debate to appreciate the power of this financing and wealth creation engine.

Where Privatized Banking Fits into Your Cash Flow System

Privatized Banking is just one step in the greater Cash Flow System.Privatized Banking

It’s the peanut butter to your cash flow sandwich.

Privatized banking is sandwiched between Stage 1, where you’re being more efficient and keeping more money you already make, and Stage 3, where you’re increasing cash flow from your investments.  It’s what makes the sandwich a sandwich, not just two slices of bread.

While it’s nestled into Stage 2, Protection, it also improves everything else around it.  Privatized Banking helps you keep more of the money you make in Stage 1, amplify your cash-flowing asset strategy in Stage 3, and accelerate your Time and Money Freedom.

What Do You Want Your Money to Do?

Before we delve into what Privatized Banking is and how it works for you, it’s important to be very clear on what you’re trying to accomplish.

Here’s a quick job description you ask your money to perform for you:

Why Privatized Banking Is the Perfect Hire

Privatized Banking doesn’t just do one thing better to make small improvements to your financial life. This strategy is the catalyst for a transformation in your financial life that gives you the opportunity to create time and money freedom.

If Privatized Banking were a job candidate applying for the position above, here’s its list of qualifications and abilities – what it can do.

And, rather than doing one job at a time, Privatized Banking performs all of these 13 jobs at the same time.  Talk about multitasking!

1) Provide Safety, Control, and Certainty

Privatized Banking will solve your risk and volatility problems as a place to store your cash where it’s safe and won’t lose value.  This gives you control.  You don’t have to wonder if your money will be there tomorrow, or what it will be worth.

2) Accessibility

Inside the Privatized Banking system, your money is liquid.  That means you can access money when you need it, without barriers or penalties.  You won’t have to apply for or beg to use your own money.  Instead, it’s as simple as, “It’s mine.  I want to use it.  Please send me a check.” and the check shows up in your mail.Privatized Banking- 13 Jobs

3) Emergency/Opportunity Fund

Whether you want to buy an investment property, do a business expansion, buy-out another business, or even cover a medical emergency or home remodel, you have access to capital. Your money isn’t segregated, imprisoned, or quarantined.  You can use it for whatever you want, whenever you want to use it.

4) Uninterrupted Compound Growth

It provides an alternative financing source outside of bank financing, credit cards, or paying cash for major purchases.  Instead of your only payment options being limited to using unsecured loans and paying the highest interest rates (Spender) or paying cash and giving up the ability to earn interest (Saver), you gain a third option.  You get to earn interest, even while you’re using your cash (Steward).  This allows you to be the banker, earning compound interest without interruption, even while you put your money to work in another investment. This sets your trajectory soaring up the compound interest curve by keeping your capital, like the bank.

5) Competitive Rate of Return

Instead of the dismal .08% growth you get on bank savings right now that makes it seem worthless to keep cash, your cash grows faster.  With Privatized Banking, you earn a rate much higher than other safe, liquid assets provide.

6) Reduce the Interest You Pay

Instead of paying the highest interest rates on uncollateralized loans, you get access to lower interest rates.  How? Your Privatized Banking system serves as the collateral that’s your ticket to lower interest rates and financing costs.  Because you pay lower rates, you keep more of your dollars, increasing your cash flow.

7) A Debt-Free Weapon

Whenever you have enough assets to pay off a loan, even if you haven’t done so, you’re not in debt.  When you build a Privatized Banking system, you’re gaining a valuable asset that you could use to pay off loans.  This doubles as a secret debt-free weapon.

8) Minimizes Tax

Instead of the growth of your money incurring a growth of your tax bill, the growth inside a Privatized Banking system is tax-advantaged.  This shrinks your future tax liability and cuts unnecessary money leaks, so you keep more of your money, increasing your personal and business cash flow.

9) Shrinks Opportunity Cost

When you stop losing so many dollars to interest and taxes, you don’t have to forfeit what those dollars could have done for you.  Instead, you keep the dollar, put it to work, and maximize its potential.

10) Increases Protection

At the heart of Privatized Banking is life insurance, which protects your income and ability to create wealth, whether you are here to see it through or not.  It protects your human life value and your livelihood, ensuring that not even death can prevent you from building wealth.

Also, because Privatized Banking can be used in business as well, it can fulfill the role of key man insurance, buy-sell agreement funding, or serve as an executive bonus.

11) Each Dollar Does More Than One Job

One of the most unique features of Privatized Banking is the ability to harness the power of the same dollars over and over again, keeping them in your personal economy. In all other tools, once you use the dollars, they are gone forever, and you’re never able to put those dollars to work again.  But inside a Privatized Banking system, you get to recycle the same money and use it an infinite number of times.

12) Peace of Mind

Having money you can access when you need it fences out worry and stress.  This gives you an abundance mindset that helps you focus on providing value and making more money.

13) Legacy Transfer

Privatized Banking allows for one of the most efficient methods of transferring your legacy to the next generation.  It keeps your estate intact, bypassing probate and arriving to your beneficiaries income-tax free so they won’t lose huge chunks of your estate in the process.

If Those Aren’t Your Goals, Stop Reading Here

So, what’s the secret? Those sound like some pretty tall claims.  How does Privatized Banking do all this?

Now, if these 12 benefits energize you, and make every fiber of your being say, “Yes, that’s exactly what I want to create!” then dig into the next section.

But if those are not your goals, I give you the permission to put down this article right now and free up the time you were planning to spend reading.  How it works is only vital if you want what it does.

At the risk of being a silly example, you don’t care much about how a rotating paddle with holes works, unless you know that we’re talking about a KitchenAid, and you just so happen to have a goal of making mouth-watering, fresh, chocolate chip cookies.  Given that context, now the instructions on how to use the KitchenAid are going to be meaningful and relevant to you.

So, if you want to create cash flow and control, let’s walk through the basic building blocks to see how Privatized Banking fulfills on the promise of being a golden key that unlocks and improves every other area of your financial life.

What Is Privatized Banking?

The first thing that makes Privatized Banking stand head and shoulders above the sea of financial products is that it is more than a product.  It’s a is a strategy for using a very specific product.

Rather than comparing it to a particular make and model of a racecar, it’s more like a particular style of racing in that car.

A Process That You Do

Privatized Banking is a whole system, or process, of money management. It has two critical components:

  1. The product design itself: a Specially Designed Life Insurance Contract (SDLIC), AND
  2. The way it’s used: the strategies to utilize the contract to do the most with your money

Unfortunately, the way most people think about and use life insurance has caused them to see far less than its potential.  They look only at the features of the product, without considering how to use it. Instead of using it to its fullest capacity, they do the equivalent of buying a U-Haul that could provide transportation and income, and then leave it parked in the garage.  Just like an income-producing truck, SDLIC is meant to be used.

Please understand, buying a product, no matter how good it is, will get you nowhere without the right strategies to use it.  And the right strategy, no matter how ideal, will get you nowhere without the right principles.

The reason I emphasize this point is that everything in your financial life must start with a principle.  You need to be crystal clear on what you want to accomplish and why.  Then you can design the strategy and system to do that. Finally, you can select the right products that work best to get the job done.  But if you start with products before you have a north star in your financial endeavors, you’ll forever be chasing your tail, not really knowing whether you’re getting closer to your goals.

So, Privatized Banking isn’t something you buy, it’s something you do.  And it just so happens to help you do a lot of things really well if you have the right mindset.

What Makes a Life Insurance Contract Specially Designed?

Let’s break down the four non-negotiable elements of a Specially Designed Life Insurance Contract, the significance of each, and find out what it does for you.

The main ingredients are:

  1. High cash value
  2. Dividend-paying
  3. Whole life insurance contract
  4. With a mutual company

High Cash Value

Nelson Nash, (Nelson Nash Institute) the father of Infinite Banking, famously says that cash value life insurance has been misclassified.

The reason? Classification should happen along the lines of the primary characteristics of the thing.  And when you think about life insurance, you’re usually thinking about the death benefit that your loved ones get when you die.

But when we look at a Specially Designed Life Insurance Contract (SDLIC) for Privatized Banking, the cash value takes center stage.

So, what exactly is cash value?  Cash value is the portion of your death benefit that is available to access and use while you’re alive.

Life insurance cash value is very similar to the equity in a house.  The home value itself is like the death benefit.  The cash value is like the equity.  As you pay down the principal of your mortgage, you build equity.  The more money you put in, the more equity you build.  Cash value, like equity, is an asset that you can use (except that life insurance cash value is much more accessible than home equity).

This cash storage and savings function is the defining purpose of SDLIC when you’re planning to use it for Privatized Banking.  You can access and tap life insurance cash value for any type of emergency or wealth-creation opportunity that arises in your life.

A Place to Store Cash

The crucial questions become, what is the best place to store my cash during pauses in use, like when you’re building up capital for an investment, waiting for the ideal investment, or holding it in reserves?  Compared to how much I put in, how much can I use, and how quickly?  How does it grow over time?  How confident can I be of its value in the future?  And how easily can I get to it and use it?Privatized Banking Basics - Improving Every Area of Your Financial Life

And you may be surprised to learn that an SDLIC’s cash value outperforms every other savings tool we’ve assessed – from savings, checking, money market accounts, and CDs – with competitive growth rates, more safety, and more access to your capital.

Circling back to the established fact that this is a life insurance product, its special design is what allows it to build high cash value early in the policy.  We aren’t talking about a typical whole life policy that can take decades to slowly build cash value like the undetectably incremental process of metamorphosis.  Instead, we are using a policy that front-loads the cash value, so your growth is more like the launch track on a roller coaster that accelerates the train to its full speed quickly.

With Privatized Banking, the life insurance component that we are maximizing is the cash value, a place to store liquid capital.

Dividend-Paying

In addition to early high cash value, the ideal policy for Privatized Banking also has maximum long-term growth.  Part of this growth is accomplished through receiving dividends, the distribution of excess profits. When dividends are added to your policy, this input adds to the cash value pool.

Whole Life Insurance

As you probably are aware, there are several types of life insurance.

Term insurance covers you for a specific period of time, usually between 5 and 30 years.  It provides a death benefit only, with no cash value accumulation.  Because term insurance doesn’t give you access to capital you can use, it cannot be used for Privatized Banking as a place to store cash.

For most of the other types of insurance, in addition to the death benefit, you gain a savings component inside these policies, where a portion of your death benefit is available to you in the form of cash value.

There are multiple types of permanent life insurance policies, namely, whole life, universal life, and variable life insurance, with additional variations like equity-indexed universal life, and variable universal life.

Here’s what you need to know:

  1. Whole life insurance covers you for as long as you live.  It offers guarantees in mortality charges and interest, with additional dividends on top of the guarantees. The guarantees make it an ideal, dependable tool to use for Privatized Banking.
  2. Universal and variable life insurance do not have sufficient guarantees to be used as a Privatized Banking system.  Universal life insurance is more flexible, with interest earned by short-term money rates, but the mortality charges increase with age.  Variable life insurance includes mortality charges that can be either fixed or increasing, with a savings component rate of return that is determined by the stock market performance.  Some of the malfunctions that have caused these plans to go awry are an increase in mortality cost that exceeds the growth of the policy, requiring more premiums to be due than originally illustrated, or a stock market crash dragging down the value of an asset that was supposed to have certainty and stability.

Contract

One of the reasons whole life insurance is so attractive is that it offers the guarantees of being a contract.  And these guarantees are extremely valuable to you because they lay out the minimum future values you can expect, giving you a lot of certainty for the future.

You have a guaranteed premium, which is the dollars that you pay into the policy to keep it in force.  The premiums in a whole life policy never go up or increase during the lifetime of the policy.  You’ll never have a surprise moment where you wake up and have a higher premium due just to maintain the performance.

A whole life policy gives you a guaranteed death benefit. When you begin a policy, you’ll see every year from your current age out to age 121 with a guaranteed benefit amount that will be paid out when you die.  The age of 121 is a place marker called the age of endowment.  It’s significant, because although no one alive today expects to live that long, if you were to do so, the policy would pay out the full death benefit to you at that time.

Additionally, the whole life insurance contract has a guaranteed cash value.  This is the minimum amount of your death benefit that you will be able to access and use. And the guaranteed cash value is a rock-bottom value.  As long as you pay into the policy as planned, you’ll have at least the illustrated minimum cash value available to you in any given year.  The guaranteed cash value is based only on the internal growth of the policy from interest.  It does not add the highly anticipated dividends, which are subject to the current year’s profitability.

With a Mutual Company

We’ve talked about dividends, but let’s look at what makes them possible: it’s the ownership structure of the life insurance company itself.

With a mutual company, the policyowners are owners of the life insurance company.  By contract, the insurance company must pay out profits to its owners.  This return of profits is added to your policy as a dividend.

Dividends are shown in a separate section of a life insurance illustration because they are not guaranteed.  You’ll see an expected dividend payout, which may be more or less, depending on the actual profitability in real time.  Although dividends are not guaranteed, they are highly anticipated. In fact, the mutual companies that we work with have paid out dividends every single year, for over 100 years, even throughout the Great Depression.

When you participate in a mutual life insurance company, these dividends are an extra boost that accelerates your long-term growth.

In contrast, a stock company has stockholders who are the primary stakeholders of the company.  In a stock company, profits are distributed to shareholders, not to policyowners.

The reason you want to ensure your life insurance policy is with a mutual company is that they will have a sole allegiance to the policyowners. Everything the company does benefits policyowners directly.

What Makes Life Insurance Cash Value Such a Great Place to Store Liquid Capital?

Now that we’ve outlined the 4 key features of a Specially Designed Life Insurance Contract, let’s look a little deeper into the growth, safety, and liquidity of this cash value that makes it valuable to you.

Growth

One of the most fascinating mechanisms inside of a life insurance contract is how your money grows.

Within the life insurance policy, you earn a competitive, tax-free return.  Current policies are earning between 3 – 5%, net of all taxes and fees, over a 30+ year period, historically performing 2 – 3 basis points above savings account rates in the same period.

What makes this possible?  While it may seem too good to be true, it’s far from magic or wizardry.  Life insurance companies value stability, certainty, and conservative guarantees over risk.  Their calculating stewardship works more like the tortoise in the legendary Aesop’s fable of the tortoise and the hare.

When you place your premium dollars into the policy, the life insurance company invests those dollars conservatively, with a long-range view, so that they can guarantee an interest rate return to policyowners.  To accomplish this, the insurance company selects a portfolio primarily consisting of investment-grade corporate bonds and real estate.

Then, the company covers its costs: administrative overhead, agent commissions, and most significantly, the cost of paying out death claims.

After accounting for growth, costs, and maintaining appropriate reserves, excess profits are then distributed to policyowners as dividends.  From a profitability standpoint, it’s to your benefit for the insurance company to be profitable.  Higher profits mean you, as a part-owner of the mutual company, get a higher dividend.

The dividend is then added to your guaranteed interest growth, to make up the total cash value in your policy.

Tax-Advantaged

It’s important to note that cash value grows tax-deferred.  It can be accessed and used without paying tax, and the death benefit is paid to your beneficiaries, income-tax free.  With a life insurance policy, you are truly paying tax on the seed, and not the harvest.  (Aside from some improper uses of life insurance, including withdrawals over the cost basis, or MECing a policy, which would change the tax status.)

In taxed assets like CDs and stocks, you owe annual taxes on the gains.  That means that in taxable accounts, your returns are not the actual return, since you still have to subtract out the taxes owed before you arrive at a true return.  For example, a 6% taxable return in a 30% tax bracket is a real return of 4.2%.

However, with life insurance, once you place your already-taxed dollars into the policy, you don’t pay tax again, as long as you use the policy correctly*.  The growth rate you see is the final rate.

This gives life insurance growth a leg up over taxable accounts, because a lower, non-taxable return, will outperform a higher, taxable return.

Net Returns

Cash values are always listed net of all costs, so it’s an actual bottom line, or net-net-net return. Taxes don’t apply, and costs have already been accounted for.

Long-Term Actual Growth

Life insurance is a long-term tool, designed for a long-term strategy, and its performance and growth should always be viewed with a long-range perspective.

When you look at the expected performance of your policy over the next 30 years, or the actual, historical performance of a Specially Designed policy that’s been in force over the last 30 years, you can compare the total cash value against the total capital outlay to derive a rate of return.

This is where we are finding the 3 – 5% returns.  In the long-range performance.  Actual returns in the early years will be negative, followed by increasing growth rates over time.

In the first few years, many of the costs are front-loaded, causing a lack of liquidity.  Typically, somewhere between years 5 – 9, the policy will cross the break-even point, where the total cash value begins to exceed the total premiums paid in.  Beyond that point, growth continues.

Generally, insurance company growth rates tend to follow the bond market.  Today’s low interest-rate environment has also repressed the growth rate of cash value in life insurance policies, and we’re seeing much lower growth than policies from 30 years ago.  However, as interest rates rise, a subsequent increase in cash value growth could be expected.

Safety

Money that you store in a Specially Designed Life Insurance Contract can be thought of as a savings tool, where money is safe and liquid.

It is not an investment.  As such, it is not subjected to market risk.

Every time interest or dividends are added to your policy, the current, real-time cash value becomes the new floor, and your cash value will never drop below that value, but only rise over time.

Adding an additional layer of safety, in most states, your cash value is safe from scrutiny or seizure by creditors, predators, lawsuits, and the government.

Liquidity

Another of the intriguing inner workings of a life insurance policy is the liquidity – your ability to access your money.

When you have cash value, you are able to access that cash value with a guaranteed loan option and unstructured repayments, stacking up to a truly hassle-free borrowing experience.

This is possible because as a part-owner of a mutual company, you have first priority to your capital.

You Don’t Use up Your Cash Value, You Borrow Against It

Of several options, the most advantageous way to access capital is to utilize a policy loan.  Only, instead of borrowing from your cash value, you borrow against it.  You use your cash value as collateral, borrowing against your policy, and using the life insurance company’s money instead.

Yes, you pay interest to utilize capital in this way, because all capital has a cost.  However, you don’t only pay interest, you also get to earn interest, because all of your cash value remains intact, continuing to earn interest and dividends, without interruption.

That means that your money can reap the rewards of the long-term compound interest curve, even WHILE you use that money in another place.  You really get a multiplier effect when you use a policy loan to invest in a cash-flowing asset because you earn a return in two places at the same time.

And getting this loan is a piece of cake.  There are no applications, questions asked, credit checks, or even scrutiny as to what you can use the money for.  Simply having cash value entitles you to utilize it for whatever you want, for emergencies or opportunities to work in another asset for you, at any time.  You just ask for the check, and it shows up in your mailbox about a week later.

The icing on the cake is that you set your own payback schedule.  While we recommend always creating a plan to pay back the loan, you pay as you choose.  The life insurance company will not hold you accountable to the plans you set in motion, you do.  You can pay interest-only, set a principal and interest repayment plan, or wait and pay it all back at once.  This flexibility allows you to stay in control.

Privatized Banking: The Bottom Line

Maybe you never thought you have a need for life insurance, until today.

Tragically, so many people get hung up on the word life insurance they never open their mind enough to explore the multifunctional and transformative use of this premium savings tool.

So, why is it a better place to store cash?  You get a competitive, tax-free growth rate, compared to other liquid cash assets.

How does it put you in control?  When you have contractual guarantees, safety, and access to your money, you are in control.

How does it improve your financial efficiency?  It is one of the best tools that the wealthy have used over the last 150 years to store their cash, collateralize their capital, using other people’s money (OPM) and keeping their own.

How does it speed up my path to time and money freedom?  Privatized Banking shrinks the cost of capital and opportunity cost. It allows you to reclaim the banking function to minimize financing costs and improve your access to capital for opportunities.

Privatized banking is a golden key that improves every other area of your financial life: you pay fewer taxes and gain liquidity, use, and control of your money.

And this all translates to more peace of mind so that you can perform at the highest level in your life and business.

The Power of Choice Is Yours

Equipped with a new perspective and possibilities, you now have a choice.

You can wait for a better time in your life to take control.  The problem is that this type of thinking usually winds up in perpetual stall mode, and it’s hard to break free and get into motion.  You can continue hoping that the status quo financial strategies will produce a better result next time and keep gambling with your future.

Or instead, you can take the reins and direct your financial destiny.  All you need to do is decide that you want to create Time and Money Freedom, build capital you can use, and find the cash flow to begin.  With Privatized Banking, how much you have available to you in the future depends only on how much you put in and how soon you get started.

Build Your Time and Money Freedom

For more information get our free 20-minute guide on Specially Designed Life Insurance Contracts: Privatized Banking The Unfair Advantage.

Every person’s story, path, journey, and outcomes are different, and how you start, fund, and use your Privatized Banking system will look different from person to person.

If you have great income, but limited cash flow, you may need to free up cash flow or get started before you’re ready.  You can lock in your ability to start this strategy later with the right convertible term life insurance policy today.

If you’re already saving each month, but you want to use a better tool, get higher, tax-advantaged growth, and greater accessibility, let us help you determine how to implement this strategy in your own life and improve every area of your financial life in one simple move.  We’ll help you determine if you’re a fit for this strategy.

Contact us to find out the one thing you should be doing to increase your cash flow today so you can begin building capital, putting it to work, and accelerating Time and Money Freedom.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

* If the policy is utilized correctly, you’ll never pay tax on the growth and distributions.  The policy is tax-free via withdrawals and loans as long as the policy stays in force and does not become a Modified Endowment Contract.

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You play a big game, and you want your money to keep pace.   Being in control is essential to you, and your money is no exception.  You don’t have time to be strung along every year, hoping for better returns.  Instead, Privatized Banking fits your criteria.

Privatized Banking is a golden key that unlocks and improves every other area of your financial life.  With it, you reduce taxes, increase safety and liquidity, while earning competitive growth with built-in contractual guarantees.  This translates to more peace of mind.  And that elevates your ability to perform at the highest level in your life and business.

 

 


Privatized Banking Is Your Ideal Solution
Today’s article will show you how Privatized Banking is the ideal solution that you’ve never heard of.  We’ll walk you through the building blocks and what it does for you.  Then, we’ll show you this system is a strategy that you do, not just a financial product you buy.

We’ll answer:

* What is Privatized Banking?
* Why is it a better place to store my cash?
* How does it put me in control?
* How does it improve my financial efficiency?
* And how does it speed up my path to time and money freedom?

You’ll gain a fresh perspective on this historically-sound asset to see this ancient relic resurface as a modern marvel.  Instead of a boring, one-dimensional insurance product, you’ll recognize the craftsmanship and innovative architecture of this financial Swiss army knife.  And you’ll be able to cut through the myth, controversy, and debate to appreciate the power of this financing and wealth creation engine.
Where Privatized Banking Fits into Your Cash Flow System
Privatized Banking is just one step in the greater Cash Flow System.

It’s the peanut butter to your cash flow sandwich.

Privatized banking is sandwiched between Stage 1, where you’re being more efficient and keeping more money you already make, and Stage 3, where you’re increasing cash flow from your investments.  It’s what makes the sandwich a sandwich, not just two slices of bread.

While it’s nestled into Stage 2, Protection, it also improves everything else around it.  Privatized Banking helps you keep more of the money you make in Stage 1, amplify your cash-flowing asset strategy in Stage 3, and accelerate your Time and Money Freedom.
What Do You Want Your Money to Do?
Before we delve into what Privatized Banking is and how it works for you, it’s important to be very clear on what you’re trying to accomplish.

Here’s a quick job description you ask your money to perform for you:

* Create cash flow from assets like real estate and businesses
* Provide safety and guarantees on money you save
* Model the bank by owning and controlling capital
* clean 50:32
LifeBook: Creating an Extraordinary Life, with Jon and Missy Butcher – TMA 048 https://themoneyadvantage.com/lifebook-jon-and-missy-butcher/ Mon, 15 Oct 2018 09:00:14 +0000 https://themoneyadvantage.com/?p=3001 You are a creator!  You can create and live your own extraordinary life, starting right now. And here are the tools to do so, right at your fingertips!  Jon and Missy Butcher, founders of LifeBook, have embodied creating their own life. And you can do that too.  To quote Steve Jobs, “Everything around you that you call life was made up by people that were no smarter than you, and you can change it, you can influence it. You can build your own things that other people can use.” If what you see around you is not helping you create the life and business you love, you can recreate it.  You can design your own life. What began as a personal transformation journey for Jon and Missy Butcher has now helped thousands transform their lives into a masterpiece by gaining a clear vision of the person they want to become and the life they want to live, and then mapping out the steps to get there.  Part of that process is recognizing the limiting beliefs you have in that area and developing a healthy consciousness instead that allows you to fulfill your potential. Where Your Mindset Fits into the Cash Flow System At The Money Advantage, we are a community of wealth creators.  We are entrepreneurially-minded business owners who are taking control of our lives and financial destiny.  We have a compass that always points back to the principles of wealth, not just to strategies or products.  You need the right mindset, philosophy, and principles of abundance, expansive thinking, creation, cash flow, and control in place first before any financial tactics can genuinely benefit and serve you. In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money.  Finally, you increase and make more. This conversation on the mindset, philosophy, and principles of wealth creation fits right into the very first step of the first phase.     Who Are Jon and Missy Butcher? Jon & Missy Butcher are serial entrepreneurs, whose life together revolves around their love for each other, their four children and their work. Together, they have founded 19 companies, organized around causes that matter. As creators of Lifebook, an extraordinary system that has helped thousands transform their lives from ordinary to a living masterpiece, Jon and Missy have discovered how to defy aging, experience long-lasting love, redefine education for their children and build the ideal living environment in which to thrive. Other companies Jon and Missy own or have co-founded include: Purity Coffee – our value proposition is the cleanest, healthiest coffee on earth. Artists for Addicts – our mission is to change the global conversation surrounding addiction from one of judgment to one of compassion – and to provide addicts with recovery strategies that work. The Precious Moments Family of companies – spreading the message of living, caring and sharing throughout the world. The Sanctuary Healing Gardens – a quiet place of beauty and inspiration, where you can relax, recharge and renew yourself. Jon and Missy are passionate about world travel, fine wine, beautiful homes, contemporary art, and conscious capitalism. Their purpose on this planet is to create the highest possible quality of life for themselves and the people they love while helping others around them do the same. Conversation Highlights (Partial Transcript) The Beginning of an Extraordinary Life [09:14] And from the very beginning, we made a commitment to ourselves and each other that we were going to create an extraordinary love affair that lasts a lifetime. That was our main focus. We went all in from the very beginning, which is significant. And the reason it's significant is that so many couples who aren't completely all in, spend a tremendous amount of energy, sparring, and positioning. We never had any of that energy drain. We were just like, Okay, this is it. This is it for this lifetime. You are a creator!  You can create and live your own extraordinary life, starting right now. And here are the tools to do so, right at your fingertips!  Jon and Missy Butcher, founders of LifeBook, have embodied creating their own life. And you can do that too.

To quote Steve Jobs, “Everything around you that you call life was made up by people that were no smarter than you, and you can change it, you can influence it. You can build your own things that other people can use.”

If what you see around you is not helping you create the life and business you love, you can recreate it.  You can design your own life.

What began as a personal transformation journey for Jon and Missy Butcher has now helped thousands transform their lives into a masterpiece by gaining a clear vision of the person they want to become and the life they want to live, and then mapping out the steps to get there.  Part of that process is recognizing the limiting beliefs you have in that area and developing a healthy consciousness instead that allows you to fulfill your potential.

Where Your Mindset Fits into the Cash Flow System

At The Money Advantage, we are a community of wealth creators.  We are entrepreneurially-minded business owners who are taking control of our lives and financial destiny.  We have a compass that always points back to the principles of wealth, not just to strategies or products.  You need the right mindset, philosophy, and principles of abundance, expansive thinking, creation, cash flow, and control in place first before any financial tactics can genuinely benefit and serve you.Money Mindset

In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money.  Finally, you increase and make more.

This conversation on the mindset, philosophy, and principles of wealth creation fits right into the very first step of the first phase.

 

 

Who Are Jon and Missy Butcher?

Jon & Missy Butcher are serial entrepreneurs, whose life together revolves around their love for each other, their four children and their work.

Together, they have founded 19 companies, organized around causes that matter.

As creators of Lifebook, an extraordinary system that has helped thousands transform their lives from ordinary to a living masterpiece, Jon and Missy have discovered how to defy aging, experience long-lasting love, redefine education for their children and build the ideal living environment in which to thrive.

Other companies Jon and Missy own or have co-founded include:

  • Purity Coffee – our value proposition is the cleanest, healthiest coffee on earth.
  • Artists for Addicts – our mission is to change the global conversation surrounding addiction from one of judgment to one of compassion – and to provide addicts with recovery strategies that work.
  • The Precious Moments Family of companies – spreading the message of living, caring and sharing throughout the world.
  • The Sanctuary Healing Gardens – a quiet place of beauty and inspiration, where you can relax, recharge and renew yourself.

Jon and Missy are passionate about world travel, fine wine, beautiful homes, contemporary art, and conscious capitalism. Their purpose on this planet is to create the highest possible quality of life for themselves and the people they love while helping others around them do the same.

Conversation Highlights (Partial Transcript)

The Beginning of an Extraordinary Life

[09:14] And from the very beginning, we made a commitment to ourselves and each other that we were going to create an extraordinary love affair that lasts a lifetime. That was our main focus. We went all in from the very beginning, which is significant. And the reason it’s significant is that so many couples who aren’t completely all in, spend a tremendous amount of energy, sparring, and positioning. We never had any of that energy drain. We were just like, Okay, this is it. This is it for this lifetime. We got that out of the way early. And then the question becomes, what kind of life do we want to build together and, and so that was the beginning of not only an extraordinary love affair, but it was the road to the extraordinary life that we created together.Creating an Extraordinary Life, with Jon and Missy Butcher, LifeBook

A Respectful Disregard Allowed Them to Chart Their Own Path

[10:50] We looked around, and we didn’t like what we saw. In just about any category of life, most people aren’t happy. Most people aren’t fulfilled. Most people aren’t living a life that they’re going to be able to look back on and say, Man, I squeezed every drop of passion and fulfillment and excitement that I could out of my short time on this planet. So we just decided from the very beginning that we were going to live differently.

We have what we call a respectful disregard for the way anybody does just about anything. A respectful disregard. That means we respect everybody’s right to live the way they want to; however, we’re going to create our own path.

LifeBook Was Born from Radical Personal Growth and Transformation

[16:10] It took me eight years to fully recover from that difficult emotional situation. And I did it through inventing LifeBook.

LifeBook is a tool that Missy and I invented in our own lives. It started out to help me deal with this problem. I was doing a lot of personal development work, and I started my LifeBook as basically a place to keep all of my breakthroughs, all of my insights on my goals, etc. Over time it developed into this amazing tool where I identified the most important areas of life that I had to focus on and master.  I started to think about what things inside of these categories my health and fitness and financial life, my love, relationship, parenting, etc. What are the critical issues that need to be examined and mastered inside of each of these categories?

I identified four questions that needed to be asked and answered inside of each one of these areas of life. And that ended up becoming my LifeBook, which ended up becoming my guidebook, my manual, my tool to make sure that my life was consistently moving forward and on track to the extraordinary life that we defined that we wanted to live.

We never showed that book to anyone for at least at least 12 years, maybe 15, and this organically grew and grew and grew. This was our tool to navigate toward our ideal life. And then at some point, you know, 10, 12 years ago, we realized that this could really help other people, which is why we shared it with the world.

What Does It Mean to Have Wealth in Every Category of Life?

[18:33] I think the term is abundance. And to me what abundance means is abundance means a surplus. Abundance means having more than you need to survive.

Abundance means having enough to share, and it doesn’t just apply to your financial life. It applies to every area of your life.

With health and fitness, you can have abundant health and fitness, or you can have compromised health and fitness. It applies to your love relationship, your emotional life, your character.

Abundance is what we’re really after.

Abundance, Gratitude, and Wanting More

[20:39] I know many millionaires who do not have an abundant financial life, who live in a state of financial scarcity and lack.  Their money gives them fear.  They’re afraid of losing it.  They clutch onto it…

Likewise, I know many people who are on a very modest salary and a modest budget who have everything they could ever want and need, and that’s called financial abundance.

What we do know about abundance when it comes to the financial category, is abundance has nothing to do with the dollar amount that you have in the bank. It’s a mindset. It is literally a mindset.

[21:37] Your job then is to be as grateful as you possibly can be for everything you have, while at the same time being committed to expanding and learning and growing from there.

It’s a paradox. It’s like I have enough, right here, right now, and I want more. I’m proud and happy about that because the road to getting more is going to help me self-actualize and become better.

[22:37] … spiritually speaking, abundance is created by gratitude, by giving thanks and being grateful for what you have. You’re saying, I love this and I’m open to more.

Gratitude is the other side of the abundance coin. Great gratitude is what opens the channel and puts the universe on notice that you’re thankful for what you have and you’re ready to receive more of it.

[23:15] Gratitude is magic. It’s a secret weapon. We should all be waking up every day and first thing in the morning. It solves all problems.

What Is Money?

[23:54] Money is surrounded by so much confusion and so much noise, and so much angst, and just so much emotional baggage.

One of the reasons is that almost nobody understands what money actually is. And that’s where we start at LifeBook. What is money anyway? Why do we need it?

It turns out there’s an objective answer. Money is an invention … that allowed us to standardize and store value.

[27:00] It allows you to stop focusing on chasing dollars and coins, and instead focus on what creates that value in the first place, which is the goods and services that we create for each other. The value that we have to give to each other. That’s why people say money represents energy. Your energy goes into those coins, which you can then trade for anything you want.

Once you understand the fundamentals of what money is, you can start building an appropriate philosophy on top of it. That can eventually lead you to create the most wealth that you’re capable of creating.

An Empowering View of Money

[28:27] What if we were taught at a very young age, that money is a symbol of human productivity and achievement? I just described how that process works. What if we were taught that it represents all the good things that people create for each other, and that it’s absolutely worthy of our respect and admiration, and even love?Creating an Extraordinary Life, with Jon and Missy Butcher, LifeBook

But instead, we’re taught that the love of money is the root of all evil.

But what if, instead of that, we were taught that the love of money is actually the love of the human mind, production, of progress, and ultimately, of freedom and the love of humanity?

[29:44] What if we were taught from a very early age that wealth, progress, and prosperity are what eliminate poverty and human suffering, and that making money is not some sort of spiritual defect, but the highest form of contribution? And if we’d been encouraged by everyone around us at a young age to develop and apply our unique talents to the pursuit and the creation of wealth, how might this world be different now? What if our kids grew up believing this? How would their lives turn out different?

FROM Conquest and Competition TO Collaboration and Creation

[38:58] Isn’t it odd that so many of us who’ve been taught that the love of money is the root of all evil, and to view rich people with suspicion not only because of what they have, but because of what they must have done on their way up to getting all that wealth. So many people view rich people and corporations negatively and with suspicion, and yet every single one of us wants more money than we have.

Every one of us wants to join that club, yet we demonize the members of that club. It makes no sense whatsoever.  That creates so much emotional violence in this in this category. One of the things that are really trying to do is heal the relationship between where we are right now in how we how we view money and darkness and the challenges of the past. We live in a different time in place.

The Twelve Categories of LifeBook

[47:50] Our goal has been an extraordinary life that works at a high level and every important area.

We’ve defined what those areas are.

Your health and fitness, your intellectual life, your emotional life, your character, who you are deep down your spiritual life. Those are the five personal life categories that we focus on.

Then we’ve got three relationship categories, your love, relationship, parenting, and your social life.

Then we go into our business life, which is financial and career. Those two categories are approached separately, as they need to be.

All that adds up to a category called your quality of life, made up of the things that you want in your life, the experiences that you want to have, the home environments that you’re surrounded by on a continuous basis.

Then the 12th category of life book is called your life vision, which is a crystal-clear, compelling synopsis of the ideal life that you want to be living.

The Four Questions to Ask and Answer in Each Category

[49:15] In each of those categories we’ve asked and answered four questions, and the result of doing this is what creates your life book.  It’s, in essence, a 120-page book that vividly describes the person that you intend to become and the life that you intend to live, beautifully illustrated. This becomes your guide that you wrote yourself because all the all the answers are within you. You find them. The four questions that you ask in each category are as follows:

1) What are my beliefs in this category that control my behavior?

This called your premise. What is my premise? Where are the foundational beliefs that I have about this category? We take a lot of time to really, really explore and identify your beliefs. And then if you find disempowering beliefs that were putting your head by your parents, your teachers, your preachers, you know, at a young age, whatever, we help you eliminate those and replace them with more empowering beliefs. And that’s a game changer.

2) What precisely, with clarity, do I want in this area of my life?

That’s called your vision. We help you get crystal clear on what the best you would look like in every important area of your life. And that’s important to understand what the ideal you could look like.

3) Why do I want that? What’s the purpose behind that vision? What am I going to gain if I achieve that, and what am I going to lose if I don’t?

Your purpose is important because it’s what gives you the fuel to get up in the morning and do the work that’s required to make these changes and to achieve this level.  It’s your drive. It moves you.

4) What do I need to do to get it? What’s my strategy? How do I move toward this every day?

Answering those four questions across the 12 categories of your life will give you the consciousness that you need to roll up your sleeves and take responsibility for yourself. It puts you in the driver’s seat. It puts you at the center as the decision maker of your own experience.

It’s what’s allowed us to achieve excellence in every area of life.

Why LifeBook Works

[52:30] Your action will follow your consciousness, or energy. Wherever you put your attention, that’s where your mind goes to work to make your life better to work it out to figure out what you want to do. So LifeBook is literally a tool to teach people to become more aware in the areas that they are not aware in. When you become aware in those areas and more conscious of them, your subconscious mind starts working on its own, and you start seeing progress before you even take action.

Other Topics Discussed

  • Jon’s comeback from his lowest point in life that started with personal development programs, and then inventing Lifebook as a personal tool.
  • The history of money.
  • Living consciously and taking responsibility for yourself are the two basic foundational philosophical principles of the LifeBook program.
  • An empowered view of capitalism enabling commerce and trade, instead of wealth as a result of conquest.
  • The power you have to take control of your attitude and perspective.
  • How a win in one category of your life creates not only a ripple effect, but a tsunami of transformation in every other area of your life.
  • How couples can create a shared vision through conversations about what is important to them in each area.
  • The role of compassionate communication, getting curious about someone else’s point of view to create solutions, without compromising.
  • The LifeBook membership program 12-month, 12-category membership, where they do a deep dive into one category per month.

Transform Your Life Today with LifeBook

To register for LifeBook’s luxury 4-day immersion experience, one of the greatest personal development experiences on the planet, email their President directly at sandra@mylifebook.com.

Visit mylifebook.com to explore more of the powerful tools and testimonies of complete life transformation.

Create Your Time and Money Freedom

If you would like to create a comprehensive strategy to most effectively store your capital where you have safety, liquidity, and growth AND invest in cash-flowing assets to build Time and Money Freedom, contact us to request your Financial Picture Consultation.

This conversation will help you maximize your wealth today and, in the future, by:

  • Discovering money flowing into your control and money flowing out of your control
  • Strategizing ways to have more money flowing into your control
  • With the End Result being more money to utilize during your lifetime, and more to give to future generations

Email us at hello@themoneyadvantage.com to share your comments, questions, and feedback with us.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

]]> You are a creator!  You can create and live your own extraordinary life, starting right now. And here are the tools to do so, right at your fingertips!  Jon and Missy Butcher, founders of LifeBook, have embodied creating their own life. 
To quote Steve Jobs, “Everything around you that you call life was made up by people that were no smarter than you, and you can change it, you can influence it. You can build your own things that other people can use.”

If what you see around you is not helping you create the life and business you love, you can recreate it.  You can design your own life.

What began as a personal transformation journey for Jon and Missy Butcher has now helped thousands transform their lives into a masterpiece by gaining a clear vision of the person they want to become and the life they want to live, and then mapping out the steps to get there.  Part of that process is recognizing the limiting beliefs you have in that area and developing a healthy consciousness instead that allows you to fulfill your potential.


Where Your Mindset Fits into the Cash Flow System
At The Money Advantage, we are a community of wealth creators.  We are entrepreneurially-minded business owners who are taking control of our lives and financial destiny.  We have a compass that always points back to the principles of wealth, not just to strategies or products.  You need the right mindset, philosophy, and principles of abundance, expansive thinking, creation, cash flow, and control in place first before any financial tactics can genuinely benefit and serve you.

In the Cash Flow System, you first increase cash flow by keeping more of the money you make. Then you protect your money.  Finally, you increase and make more.

This conversation on the mindset, philosophy, and principles of wealth creation fits right into the very first step of the first phase.

 

 
Who Are Jon and Missy Butcher?
Jon & Missy Butcher are serial entrepreneurs, whose life together revolves around their love for each other, their four children and their work.

Together, they have founded 19 companies, organized around causes that matter.

As creators of Lifebook, an extraordinary system that has helped thousands transform their lives from ordinary to a living masterpiece, Jon and Missy have discovered how to defy aging, experience long-lasting love, redefine education for their children and build the ideal living environment in which to thrive.

Other companies Jon and Missy own or have co-founded include:

* Purity Coffee – our value proposition is the cleanest, healthiest coffee on earth.
* Artists for Addicts – our mission is to change the global conversation surrounding addiction from one of judgment to one of compassion – and to provide addicts with recovery strategies that work.
* The Precious Moments Family of companies – spreading the message of living, caring and sharing throughout the world.
* The Sanctuary Healing Gardens – a quiet place of beauty and inspiration, where you can relax, recharge and renew yourself.

Jon and Missy are passionate about world travel, fine wine, beautiful homes, contemporary art, and conscious capitalism. Their purpose on this planet is to create the highest possible quality of life for themselves and the people they love while helping others around them do the same.
Conversation Highlights (Partial Transcript)
The Beginning of an Extraordinary Life
]]>
Bruce Wehner & Rachel Marshall clean 1:04:26 Don’t Be a “Rugged Individualist” – Delegate! (Reviewed) – TMA 047 https://themoneyadvantage.com/dont-be-a-rugged-individualist-delegate/ Mon, 08 Oct 2018 09:00:31 +0000 https://themoneyadvantage.com/?p=2991 As entrepreneurs building growing businesses, it often becomes necessary to transform ourselves. Innovation requires shedding our old thought patterns and ways of operating, so we can embrace new ones that serve us better.  Dan Sullivan, of Strategic Coach, outlines this phenomenon in his growth-provoking article, Don’t Be a “Rugged Individualist” – Delegate! He contrasts two ways of being. As fledgling entrepreneurs, we embody the tenacity and grit of “rugged individualist.”  Perhaps initially we can’t afford to hire out.  We resort to doing everything ourselves, from marketing, sales, technical expertise, service, managing, hiring, training, picking up supplies, cleaning the bathrooms, etc.  But as we expand, this individualism can quickly become stunting, and downright ridiculous. The maturing business owner must shift from an “I can do it myself” perspective to one of “who can do this better than me?” Trying to do everything yourself limits the good you can do.  Instead, focus on your strengths, spend your time there, and delegate everything else. In this way, you’ll accomplish much more together as a team. Why Delegation Is a Prerequisite to Creating Your Ideal Life In the early stages of business, you may be tempted to think that just because you’re good at your craft, that will automatically translate to building a successful business.  But often this start-up strength can become a weakness in the scaling phase. If you’re focusing on things that aren’t your core strength, you’re going to have a hard time moving forward.  Not only is it demoralizing and damaging to your confidence, but the progress is slow.  It arrogantly blinds you from recognizing the talents and skills of others around you. Building a self-sustaining business that doesn’t depend on you requires you to scale by building high-functioning teams.  This is the only way to move from the Self-Employed to the Business Owner quadrant in Robert Kiyosaki’s Cashflow Quadrant. Rugged Individualism Comes from a Scarcity Mindset Think about all the reasons you wouldn’t delegate. Often, it’s our pride and arrogance, thinking we can do something better than everyone else.  That perspective prevents us from seeing the potential in others.  And we continue to play small.  Instead of teaching others and re-creating ourselves, we cap our potential. Another reason we don’t delegate is that we believe it’s too expensive, or that we can’t afford it.  But this decision has an opportunity cost too!  You might save the cost of paying a contractor if you do it yourself, but how much can you actually do on your own?  How much more can you accomplish if you multiply your efforts with a team and synergize everyone’s strengths? The Two Top Reasons to Delegate The most important reason to delegate is that if you are not willing to invest in the expertise of others to support you, no one will invest in your expertise to support them.  It’s a law of abundance and value creation.  By refusing to give and receive from those who can help you, you are cinching a tourniquet around your ability to give and receive in every other area of your life. The second most compelling reason to delegate is that you can be most excellent when you’re focused, not a jack of all trades.  Instead of spending time on non-productive activities that drain your energy, put everything into what energizes you, where you’re doing your best work. Harness the power of delegation, tap into the skills of your team, and experience the momentum of Unique Ability Teamwork. - Dan Sullivan Guidelines for Effective Delegation As you begin delegating, be open-minded and willing to upgrade old habits along the way.  Here’s what Dan Sullivan says to do and what not to do, to build strong teams that exponentially expand your capabilities: DO Constantly update your key priorities with your team, so everyone is aligned on what’s most important. As entrepreneurs building growing businesses, it often becomes necessary to transform ourselves. Innovation requires shedding our old thought patterns and ways of operating, so we can embrace new ones that serve us better.  Dan Sullivan, of Strategic Coach, outlines this phenomenon in his growth-provoking article, Don’t Be a “Rugged Individualist” – Delegate!

He contrasts two ways of being. As fledgling entrepreneurs, we embody the tenacity and grit of “rugged individualist.”  Perhaps initially we can’t afford to hire out.  We resort to doing everything ourselves, from marketing, sales, technical expertise, service, managing, hiring, training, picking up supplies, cleaning the bathrooms, etc.  But as we expand, this individualism can quickly become stunting, and downright ridiculous.

The maturing business owner must shift from an “I can do it myself” perspective to one of “who can do this better than me?”

Trying to do everything yourself limits the good you can do.  Instead, focus on your strengths, spend your time there, and delegate everything else. In this way, you’ll accomplish much more together as a team.

Why Delegation Is a Prerequisite to Creating Your Ideal Life

In the early stages of business, you may be tempted to think that just because you’re good at your craft, that will automatically translate to building a successful business.  But often this start-up strength can become a weakness in the scaling phase.

If you’re focusing on things that aren’t your core strength, you’re going to have a hard time moving forward.  Not only is it demoralizing and damaging to your confidence, but the progress is slow.  It arrogantly blinds you from recognizing the talents and skills of others around you.

Building a self-sustaining business that doesn’t depend on you requires you to scale by building high-functioning teams.  This is the only way to move from the Self-Employed to the Business Owner quadrant in Robert Kiyosaki’s Cashflow Quadrant.

Rugged Individualism Comes from a Scarcity Mindset

Think about all the reasons you wouldn’t delegate.

Often, it’s our pride and arrogance, thinking we can do something better than everyone else.  That perspective prevents us from seeing the potential in others.  And we continue to play small.  Instead of teaching others and re-creating ourselves, we cap our potential.

Another reason we don’t delegate is that we believe it’s too expensive, or that we can’t afford it.  But this decision has an opportunity cost too!  You might save the cost of paying a contractor if you do it yourself, but how much can you actually do on your own?  How much more can you accomplish if you multiply your efforts with a team and synergize everyone’s strengths?

The Two Top Reasons to Delegate

The most important reason to delegate is that if you are not willing to invest in the expertise of others to support you, no one will invest in your expertise to support them.  It’s a law of abundance and value creation.  By refusing to give and receive from those who can help you, you are cinching a tourniquet around your ability to give and receive in every other area of your life.

The second most compelling reason to delegate is that you can be most excellent when you’re focused, not a jack of all trades.  Instead of spending time on non-productive activities that drain your energy, put everything into what energizes you, where you’re doing your best work.

Harness the power of delegation, tap into the skills of your team, and experience the momentum of Unique Ability Teamwork. – Dan Sullivan

Guidelines for Effective Delegation

As you begin delegating, be open-minded and willing to upgrade old habits along the way.  Here’s what Dan Sullivan says to do and what not to do, to build strong teams that exponentially expand your capabilities:Don't Be a Rugged Individualist - Delegate

DO

  1. Constantly update your key priorities with your team, so everyone is aligned on what’s most important.
  2. Clarify your expectations by specifying how much time and effort you want people to invest.
  3. Give people working with you the support they need so they can better leverage you.
  4. Make sure there is a system in place, so you know when a project has been completed.
  5. Be available for questions.
  6. Let people know if you’re just brainstorming so they know whether or not to take action.

DON’T:

  1. Expect people to read your mind.
  2. Be guilty of “drive-by delegation.”
  3. Underestimate the time it takes to do things.
  4. Create messes by thinking you can do everything yourself.
  5. Micromanage
  6. Be impatient. (Let others grow.)

Start Before You’re Ready

What about you?  Where has rugged individualism served you before, but is now holding you back?

How can you discover and use your unique abilities?  Consider using these tools to discover your unique abilities: The Kolbe A Test, the CliftonStrengths test, The Fascination Advantage, DISC, or the Meyer’s Briggs test.

How can you delegate everything else to improve your productivity? What can you outsource or delegate to expand your capabilities?  A financial team, legal, marketing (technology), virtual assistant, social media, design, editing, syndication of content, copywriter?

How can you harness the power of teamwork with a focus on unique ability?  How can you improve your ability to delegate so you can let go of exhausting micromanagement and get better results?

Delegating isn’t just a luxury of the successful.  As you grow, delegate … but also, to grow, delegate!

Delegate to Build Your Wealth Creation Team

Please stop trying to wear all the hats.  Don’t be your own accountant, CPA, legal advisor, financial advisor, business consultant.

We’ve developed a family office model, with each specialist in our team working in their core area of expertise, to help you keep more of the money you make, protect it, and make more.

To optimize your financial life, contact us to request your free Financial Picture Consultation.

We’ll help you maximize your wealth today and in the future by:

  • Discovering money flowing into your control and money flowing out of your control
  • Strategizing ways to have more money flowing into your control
  • With the End Result being more money to utilize during your lifetime, and more to give to future generations

Email us at hello@themoneyadvantage.comto share your comments, questions, and feedback with us.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

]]>
As entrepreneurs building growing businesses, it often becomes necessary to transform ourselves. Innovation requires shedding our old thought patterns and ways of operating, so we can embrace new ones that serve us better.  Dan Sullivan, Don’t Be a “Rugged Individualist” – Delegate!

He contrasts two ways of being. As fledgling entrepreneurs, we embody the tenacity and grit of “rugged individualist.”  Perhaps initially we can’t afford to hire out.  We resort to doing everything ourselves, from marketing, sales, technical expertise, service, managing, hiring, training, picking up supplies, cleaning the bathrooms, etc.  But as we expand, this individualism can quickly become stunting, and downright ridiculous.

The maturing business owner must shift from an “I can do it myself” perspective to one of “who can do this better than me?”

Trying to do everything yourself limits the good you can do.  Instead, focus on your strengths, spend your time there, and delegate everything else. In this way, you’ll accomplish much more together as a team.


Why Delegation Is a Prerequisite to Creating Your Ideal Life
In the early stages of business, you may be tempted to think that just because you’re good at your craft, that will automatically translate to building a successful business.  But often this start-up strength can become a weakness in the scaling phase.

If you’re focusing on things that aren’t your core strength, you’re going to have a hard time moving forward.  Not only is it demoralizing and damaging to your confidence, but the progress is slow.  It arrogantly blinds you from recognizing the talents and skills of others around you.

Building a self-sustaining business that doesn’t depend on you requires you to scale by building high-functioning teams.  This is the only way to move from the Self-Employed to the Business Owner quadrant in Robert Kiyosaki’s Cashflow Quadrant.
Rugged Individualism Comes from a Scarcity Mindset
Think about all the reasons you wouldn’t delegate.

Often, it’s our pride and arrogance, thinking we can do something better than everyone else.  That perspective prevents us from seeing the potential in others.  And we continue to play small.  Instead of teaching others and re-creating ourselves, we cap our potential.

Another reason we don’t delegate is that we believe it’s too expensive, or that we can’t afford it.  But this decision has an opportunity cost too!  You might save the cost of paying a contractor if you do it yourself, but how much can you actually do on your own?  How much more can you accomplish if you multiply your efforts with a team and synergize everyone’s strengths?
The Two Top Reasons to Delegate
The most important reason to delegate is that if you are not willing to invest in the expertise of others to support you, no one will invest in your expertise to support them.  It’s a law of abundance and value creation.  By refusing to give and receive from those who can help you, you are cinching a tourniquet around your ability to give and receive in every other area of your life.

The second most compelling reason to delegate is that you can be most excellent when you’re focused, not a jack of all trades.]]>
Bruce Wehner & Rachel Marshall clean 44:27
Cash Flow Index: The Smartest Way to Pay off Debt – TMA 046 https://themoneyadvantage.com/cash-flow-index-pay-off-debt/ Mon, 01 Oct 2018 09:00:21 +0000 https://themoneyadvantage.com/?p=2966 Most people struggle to get out from debt like they’re drowning in the ocean.  Like drowning, they waste energy, time, and money floundering and flailing instead of taking calculated, focused, strategically-timed strokes that would free them most efficiently.  One of the reasons that this happens so often is because people focus on solving the wrong problem.  When it comes to paying off debt, most people are riveted on the interest they are paying. They let it steal their attention like a car accident in the other lane causes the rubber-necking drivers to lose focus on staying in their own lane. When it comes to paying off debt, interest is only the second priority.  It plays second fiddle. It’s cash flow that is the first priority. A focus on interest rates is like a focus on all the deep scary ocean water, full of sea creatures below you.  It’s the wrong place to put your attention if you want to swim.  Don’t work to escape the water, work to reach the air.   Earlier in the Series on Debt Previously, in Why Debt Free Doesn’t Make You Financially Free, we demonstrated clearly what debt is and what it isn’t, and that rushing frantically to pay off loans may be one of the riskiest financial moves you can make.  We revealed that just because you have loans doesn’t mean you’re even in debt, and that the end goal of being rid of debt might not get you any closer to financial freedom. Then, in The Right Way to Spend Money: Spender, Saver, or Steward? we discovered the limitations of both the Spender and the Saver.  We also uncovered the superpowers of the Steward to create wealth through control, access to capital, and earning uninterrupted compound interest. In Opportunity Cost: The Invisible Cost of Financing, we busted the myth that paying cash always saves you money. We discussed that there’s always a cost of capital, and the person who comes out ahead is the one who maintains control and access to their money. The Safest, Smartest Way to Pay off Debt Now, if you are in a position with multiple loans, and you’ve decided that the most productive use of your capital at this time is to pay off loans, it’s time to get a game plan. We’ll help you calculate the best strategy to pay off debt, while decreasing risk, increasing your cash flow, maintaining as much financial control as possible, and avoiding a crisis of liquidity. We’ll call it Cash Flow Index Snowball Method.  It’s a comprehensive cash flow strategy for paying off debt. We’ll answer: Should I pay off my debt? If so, how do I pay off debt the quickest, most efficient, smartest way possible? Which debt should I pay off first? How do I pay off debt to best increase my cash flow? How do I avoid rubber-band debt? What steps do I take to avoid a crisis of liquidity? This conversation will move you from haphazard overpayments to a strategic, focused plan that increases your financial control.  You’ll get the one simple calculation that tells you how much you’ll increase your cash flow by paying off each debt.  Instead of riding the rubber band cycle of paying it off to racking it up again, you’ll be able to eliminate debt once and for all. Where Paying off Debt Fits into Your Cash Flow System Paying off debt is not a destination.  It’s just one step in the greater Survival to Significance Cash Flow System. It’s important to have your eye on the endgame to make sure all of your decisions along the way line up to get you there.  The ultimate epitome of financial accomplishment is to have cash flow from assets, achieve time and money freedom, and contribute at the highest level. To qualify to invest in cash-flowing assets, you need capital to invest.  If you don’t already have the capital ready, the best way to build it is to maximize your cash flow today and put as much of your cash in your control as possible. Paying off loans, and more importantly, understanding your financing decisions, Most people struggle to get out from debt like they’re drowning in the ocean.  Like drowning, they waste energy, time, and money floundering and flailing instead of taking calculated, focused, strategically-timed strokes that would free them most efficiently.

One of the reasons that this happens so often is because people focus on solving the wrong problem.  When it comes to paying off debt, most people are riveted on the interest they are paying. They let it steal their attention like a car accident in the other lane causes the rubber-necking drivers to lose focus on staying in their own lane.

When it comes to paying off debt, interest is only the second priority.  It plays second fiddle.

It’s cash flow that is the first priority.

A focus on interest rates is like a focus on all the deep scary ocean water, full of sea creatures below you.  It’s the wrong place to put your attention if you want to swim.  Don’t work to escape the water, work to reach the air.

 

Earlier in the Series on Debt

Previously, in Why Debt Free Doesn’t Make You Financially Free, we demonstrated clearly what debt is and what it isn’t, and that rushing frantically to pay off loans may be one of the riskiest financial moves you can make.  We revealed that just because you have loans doesn’t mean you’re even in debt, and that the end goal of being rid of debt might not get you any closer to financial freedom.

Then, in The Right Way to Spend Money: Spender, Saver, or Steward? we discovered the limitations of both the Spender and the Saver.  We also uncovered the superpowers of the Steward to create wealth through control, access to capital, and earning uninterrupted compound interest.

In Opportunity Cost: The Invisible Cost of Financing, we busted the myth that paying cash always saves you money. We discussed that there’s always a cost of capital, and the person who comes out ahead is the one who maintains control and access to their money.

The Safest, Smartest Way to Pay off Debt

Now, if you are in a position with multiple loans, and you’ve decided that the most productive use of your capital at this time is to pay off loans, it’s time to get a game plan.

We’ll help you calculate the best strategy to pay off debt, while decreasing risk, increasing your cash flow, maintaining as much financial control as possible, and avoiding a crisis of liquidity.

We’ll call it Cash Flow Index Snowball Method.  It’s a comprehensive cash flow strategy for paying off debt.

We’ll answer:

  1. Should I pay off my debt?
  2. If so, how do I pay off debt the quickest, most efficient, smartest way possible?
  3. Which debt should I pay off first?
  4. How do I pay off debt to best increase my cash flow?
  5. How do I avoid rubber-band debt?
  6. What steps do I take to avoid a crisis of liquidity?

This conversation will move you from haphazard overpayments to a strategic, focused plan that increases your financial control.  You’ll get the one simple calculation that tells you how much you’ll increase your cash flow by paying off each debt.  Instead of riding the rubber band cycle of paying it off to racking it up again, you’ll be able to eliminate debt once and for all.

Where Paying off Debt Fits into Your Cash Flow System

Paying off debt is not a destination.  It’s just one step in the greater Survival to Significance Cash Flow System.Money Finder

It’s important to have your eye on the endgame to make sure all of your decisions along the way line up to get you there.  The ultimate epitome of financial accomplishment is to have cash flow from assets, achieve time and money freedom, and contribute at the highest level.

To qualify to invest in cash-flowing assets, you need capital to invest.  If you don’t already have the capital ready, the best way to build it is to maximize your cash flow today and put as much of your cash in your control as possible.

Paying off loans, and more importantly, understanding your financing decisions, is part finding and freeing up money in the foundation.  It’s where you keep more of the money you make and increase your cash flow.

When you keep more today, you increase your options, flexibility, and power to create lasting wealth.

Why Cash Flow Is Top Priority

Many people think that the best way to pay off loans is to start with the high-interest loans first because their goal is to pay the least interest.  While ideally, you want to have low-interest loans, this strategy can have you chasing your tail if the high-interest loans are the largest loans, because it will take forever to reach that first milestone.

Another common strategy people use is to get a quick win by paying off the smallest loan first.  In this way, they hope to build up traction to pay off the next loan.

But, when it comes down to a nuts and bolts strategy for paying off debt, the most important thing to remember is that cash flow is your top priority.  You want to ask yourself this question before any financial decision: how does this increase my cash flow?

You can think of paying off debt the same way that you think about investing.  What is the rate of return on making this financial move?  For the dollars I commit, how does it improve my cash flow?

Cash Flow Strategy for Paying off Debt

To pay off your loans to increase cash flow, we’re going to arrange your loans in order of pay-off priority.  Then, we’ll use this information to help you decide whether you should pay off the loan, and if so, which ones to do first.

This method is similar to using the debt snowball method, with a few key differences.  You’ll rank loans differently, so you can pay off the one that frees up the most cash flow first and gain momentum as you have added cash flow to attack the next loan. Additionally, you’ll always keep a liquid fund for emergencies that you don’t use for paying off debt.

Step 1: Calculate the Cash Flow Index

You need an easy way to compare all of your loans on the same terms so that you can figure out which ones to pay off first.  The Cash Flow Index is the best way to quickly determine which loans have the highest payment relative to the balance.

To calculate the efficiency of each loan, you just need two numbers for each loan: the balance of the loan, and the minimum payment.

It’s important to note that you may be making overpayments or rounding up each time you pay the bill.  Don’t use the amount you’re actually paying.  Use the minimum required payment instead.

For mortgages, you’ll want to use only the portion of the monthly payment made up of principal and interest.  Don’t include taxes and insurance that are tacked on and added to escrow.

Armed with your figures, use this equation to calculate a Cash Flow Index Score for each loan:

Balance / Minimum payment = Cash Flow Index

What Does the Cash Flow Index Mean?

The Cash Flow Index helps you quickly see the amount of cash flow a particular loan is using up, and on the flip side, how much extra cash flow it would give you if it was paid off.  It’s like converting fractions, so they all have the same denominator.  That way you can compare apples to apples.

Lower scores mean the loan is sucking up more cash flow each month.  These loans cost you the most, so they’re the best ones to throw overboard.  When you have low index loans, they use up the most monthly cash flow proportionately.  When you pay it off, it frees up the most monthly cash flow.  We call these loans the least efficient loans, meaning they are not good loans to have.

Conversely, high scores mean the loan uses up relatively little cash flow each month.  These are the most efficient loans, meaning that they are the best loans to have.  They are also the least important to get rid of. To pay them off would require a lot of capital, and you’d get very little cash flow in return.

Here’s an example.  Say you had a $10,000 auto loan at 0% interest and a $10,000 credit card at 18% interest.

Let’s look at the Cash Flow Index scores.  The auto loan has a $1,000 payment, and the credit card has a $250 payment.  We calculate them this way:

  1. $10,000 auto loan / $1,000 minimum monthly payment = CFI 10
  2. $10,000 credit card / $250 minimum monthly payment = CFI 40

The auto loan scores lower, meaning that it’s more important to pay off first.  Why? Because doing so gives you more monthly cash flow.

Ranking Your Cash Flow Index Scores

Scores that fall between 0 – 50 on the Cash Flow Index are considered in the Danger Zone.  These are loans you want to pay off or consolidate into another loan at a higher index.

Scores between 50 – 100 on the Cash Flow Index are in the Caution Zone.  You want to restructure or refinance to a lower index, but you don’t need to pay it off immediately.

Scores over 100 are in the Freedom Zone.  Contrary to popular belief, these are loans you don’t need to pay off.  There are so many more productive opportunities to use your cash to create more cash flow than you would by paying off these loans. Most mortgages and student loans fall into this category.

The Rate of Return on Paying Off Debt

Another way to look at this is as a rate of return.  Calculate rates of return the opposite direction: annual cash flow/investment.  It’s what you get out, divided by what you put into the deal.

If you were to think of paying off the loan as making an investment, we’d calculate the returns this way:

  1. Auto loan: ($1,000 monthly cash flow X 12 months) / $10,000 lump sum = 120% annual rate of return
  2. Credit card: ($250 monthly cash flow X 12 months) / $10,000 lump sum = 30% annual rate of return

This method is a revealing way to determine the highest and best use of your capital.  Sometimes, you’ll discover that you have other opportunities to invest where your money will work harder and create a higher cash flow payoff.

Step 2: Use the Cash Flow Index to Create a Strategy

After we’ve assembled the data, how do we use it to make decisions?Cash Flow Index - The Smartest Way to Pay off Debt

Should You Pay off Loans?

The first question you should ask yourself, is should I pay off this loan?

Before you set up your plan of attack, you want to make sure paying off loans are the best use of your resources.

There’s always more than one way to do something, including using your cash to increase your cash flow.  The same capital it takes to pay down debt to decrease expenses could instead be used to invest in assets that increase income.  Both moves will increase your cash flow if you hold everything else in your life steady.

It’s your job to decide what the highest and best use of your capital is.  And coming up with the answer requires taking an in-depth look at your creativity, stewardship, and the opportunities that you know and control.

Consumptive vs. Productive Loans

Even when comparing the Cash Flow Index scores, it’s important to note that not all loans are created equally.

Some loans are purely consumptive.  They’ve purchased something you eat or use up, or that loses value the moment you swipe your card.

Other loans purchase assets that have and hold value better, like property or cars.  You could sell them later and recover at least some of your capital.

But productive loans purchase something that makes you money.  Productive loans, for example, produce a rate of return in your business or real estate.  Remember, banks use debt to create leverage and arbitrage, earn interest, and increase their cash flow

You’ll want to use this loan quality metric to help guide your decision-making.

Your Strategy Depends on Your Stewardship

If $10,000 could pay off a loan to give you a 6% rate of return by giving you $600 in annual cash flow, could you get a better return by investing somewhere else?  What if you had the cash to pay off that loan, but could get a 20% rate of return by investing into your business, generating $2,000 in new revenue per year?

Ask yourself, can I earn more with this money if I keep it than I would save in interest if I pay off the loan?

Work to become liability-free, if that is the best use of the money for you.

The Best Strategy to Pay off Debt

If paying off a loan is the highest and best use of your cash, pay off the debt with the LOWEST cash flow index first.  This strategy will increase your cash flow the quickest by freeing up the most money each month. More importantly, it will give you the most freedom and peace of mind.

A welcome side effect will be an improvement to your debt to income ratio, and banks like that!  If you’re looking for financing, you’ll qualify for lower interest rates and better terms, securing future loans that show up with a lower Cash Flow Index score.  And this keeps more of your future dollars in your pocket, too.

Here are the steps, in order, to execute the Cash Flow Index Snowball Method for the safest, most efficient debt reduction strategy:

#1) Continue making minimum payments.

Make sure you never miss a payment. On-time payments go the furthest towards boosting your credit score.  However, resist the urge to make overpayments at this time, because you have higher priority things to use your cash flow for.  Plus, an overpayment today doesn’t improve your chances of making the next payment on time.

#2) Build up savings.

Speaking of highest priority, before paying off any debt, build up money in your control that you can access. Savings is the ultimate prevention for a liquidity crisis.  You’ll never come into a position where you need cash, have none, and have to dip back into debt to make ends meet.

#3) Keep an emergency fund.

Not all of the money in savings will be used for paying off debt. No matter how urgently you want to erase the loan, or how high the Cash Flow Index, you will sleep the soundest and breath the easiest knowing you always have cash.

#4) Find your lowest index loan.

Remember, the lowest index loans are money hogs. Those loans are draining you of the most cash flow now and will free up the most money per month when they’re gone.

#5) Pay off the loan all at once.

Instead of slinging small overpayments to the loan, wait until you have sufficient cash over and above your emergency fund to make a lump-sum payment to wipe out that loan.  You’ll stay in the most control at all times.  You either have the cash, or you have the cash flow from paying it off. You’re not stuck in limbo between the two with neither.

#6) Redirect new cash flow to savings.

Whatever the eliminated payment, direct that cash flow to savings, to rinse and repeat the process for the next loan.

Using the Cash Flow Index Snowball Method increases your cash flow and control.  It decreases risk, helps you maintain as much control as possible at all times.

Because it emphasizes building up capital, it eradicates debt, even if you don’t pay it off. That’s because the definition of debt is a position with more liabilities than assets.  If you build up the assets above the level of your liabilities, you’re out of debt, even if you still have the loan on the books.

Turbocharge Your Debt Pay-Off with Life Insurance

Instead of using a typical savings account where your cash grows slowly and ceases to compound the moment you use it, consider storing your savings inside high cash value whole life insurance.  Using life insurance as your savings vehicle of choice allows you to maintain uninterrupted compounding, even when you use your money.

Using this tool, you will still want to follow all the steps above.

Capitalize the policy, build up cash value, maintain an emergency fund, and pay off least efficient loans first, all at once.

Then, cash flow you free up from canceled monthly payments can be used to pay down your policy loan and remove the lien against your cash value.

Refinancing and Loan Consolidation

Sometimes it makes sense to refinance loans to lower payments and increase cash flow.  One strategy could be to refinance a mortgage, roll in the lowest Cash Flow Index non-deductible debt to reduce your total interest and payments.  More of your interest will become tax deductible, additionally increasing your cash flow.

Other Considerations

Paying off loans is a personalized process and requires an evaluation of your complete financial picture and goals, so there may be times you consider other factors.

For instance, you may have an immediate deadline to boost your credit, so you can purchase a property.  This may require partially paying down some balances to reduce your total utilization.

You may have cards that have a 0% introductory rate that increases at a specific deadline.

You may have some active credit cards that you use as a debit card.  Whether it’s to earn points or just for convenience, you use them regularly and pay them off, never maintaining a balance.  It’s not necessary to add these credit cards to your Cash Flow Index Snowball Method.

The cards you want to include in your strategy are the passive cards where you have a previously-incurred balance you’re trying to pay down, but you’re no longer charging on this card.

The Bottom Line

Always seek the highest and best use of your capital and keep your eye on increasing cash flow as your true north.  Whether you choose to pay off loans, and which ones are best to pay off will change for you over time, based on your stewardship and creativity at that time.  Be patient with yourself and know that if you are continually improving your mindset, you will increase your stewardship over time.

The Cash Flow Index Snowball Method will help you free up the most cash flow while keeping as much cash in your control as possible at all times. You’ll gain momentum in building savings by attacking the loans that free up the most cash flow first, always maintaining a liquid fund for emergencies.

The Series on Debt

Check out the rest of the articles, podcasts, and videos in the series on debt here:

  1. Why Debt Free Doesn’t Make You Financially Free – TMA 037
  2. The Right Way to Spend Money: Spender, Saver, or Steward? – TMA 040
  3. The Invisible Cost of Financing: Opportunity Cost – TMA 043
  4. Cash Flow Index: The Smartest Way to Pay off Debt – TMA 046

Start Increasing Your Cash Flow Today

Equipped with a new perspective and possibilities, you now have a choice.

You can fear debt, pay everything extra to it, at all costs, to reduce it, and put yourself in a dangerous position without cash.

Or, you can upgrade your stewardship and strategically make decisions to increase your cash flow and control systematically.

Build Your Time and Money Freedom

Wherever you find yourself today, use this cash flow method to pay off debt and increase your cash flow and control.

If you have loans to pay off and have the cash in hand to pay them off, don’t try to DIY your own strategy.  To evaluate the best strategy to increase your cash flow and control today, reach out to schedule your Financial Picture Conversation today.  Contact us to request your Financial Picture Conversation or email hello@themoneyadvantage.com to share your comments, questions, and feedback with us.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

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Most people struggle to get out from debt like they’re drowning in the ocean.  Like drowning, they waste energy, time, and money floundering and flailing instead of taking calculated, focused, strategically-timed strokes that would free them most effic... 
One of the reasons that this happens so often is because people focus on solving the wrong problem.  When it comes to paying off debt, most people are riveted on the interest they are paying. They let it steal their attention like a car accident in the other lane causes the rubber-necking drivers to lose focus on staying in their own lane.

When it comes to paying off debt, interest is only the second priority.  It plays second fiddle.

It’s cash flow that is the first priority.

A focus on interest rates is like a focus on all the deep scary ocean water, full of sea creatures below you.  It’s the wrong place to put your attention if you want to swim.  Don’t work to escape the water, work to reach the air.

 


Earlier in the Series on Debt
Previously, in Why Debt Free Doesn’t Make You Financially Free, we demonstrated clearly what debt is and what it isn’t, and that rushing frantically to pay off loans may be one of the riskiest financial moves you can make.  We revealed that just because you have loans doesn’t mean you’re even in debt, and that the end goal of being rid of debt might not get you any closer to financial freedom.

Then, in The Right Way to Spend Money: Spender, Saver, or Steward? we discovered the limitations of both the Spender and the Saver.  We also uncovered the superpowers of the Steward to create wealth through control, access to capital, and earning uninterrupted compound interest.

In Opportunity Cost: The Invisible Cost of Financing, we busted the myth that paying cash always saves you money. We discussed that there’s always a cost of capital, and the person who comes out ahead is the one who maintains control and access to their money.
The Safest, Smartest Way to Pay off Debt
Now, if you are in a position with multiple loans, and you’ve decided that the most productive use of your capital at this time is to pay off loans, it’s time to get a game plan.

We’ll help you calculate the best strategy to pay off debt, while decreasing risk, increasing your cash flow, maintaining as much financial control as possible, and avoiding a crisis of liquidity.

We’ll call it Cash Flow Index Snowball Method.  It’s a comprehensive cash flow strategy for paying off debt.

We’ll answer:

* Should I pay off my debt?
* If so, how do I pay off debt the quickest, most efficient, smartest way possible?
* Which debt should I pay off first?
* How do I pay off debt to best increase my cash flow?
* How do I avoid rubber-band debt?
* What steps do I take to avoid a crisis of liquidity?

This conversation will move you from haphazard overpayments to a strategic, focused plan that increases your financial control.  You’ll get the one simple calculation that tells you how much you’ll increase your cash flow by paying off each debt.  Instead of riding the rubber band cycle of paying it off to racking it up again, you’ll be able to eliminate debt once and for all.
Where Paying off Debt Fits into Your Cash Flow System
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Bruce Wehner & Rachel Marshall clean 42:44
Nelson Nash: Father of The Infinite Banking Concept® – TMA 045 https://themoneyadvantage.com/nelson-nash-infinite-banking-concept/ Mon, 24 Sep 2018 09:00:39 +0000 https://themoneyadvantage.com/?p=2878   Nelson Nash is an exceptional thinker who discovered a secret to prosperity that was too good to keep to himself. The Infinite Banking Concept® was born when he noticed what was already possible inside cash value life insurance; the ability to earn interest, gain access to capital and take control of your financial life.  Since then, he’s poured his life into providing education about life insurance, making it plain so that others could prosper.  Through his life and work, Nelson has woven a rich legacy that continues to empower.  After reading his book, Becoming Your Own Banker, early on in business, my husband and I quickly implemented these ideas in our own lives.  We secured a dividend-paying whole life insurance policy that we’ve since used to invest in ourselves and our business.  Our financial education journey led to meeting Bruce’s team, where we also met Nelson in person.  We took him out to lunch, and I told him that someday, we would have a podcast, and wanted to interview him before he finished his speaking career.  Looks like we made it! We are so honored and grateful for the opportunity to share Nelson Nash’s story and wisdom with you.   Where Infinite Banking Fits into the Cash Flow System Inside The Money Advantage Cash Flow System, you first increase cash flow by keeping more of the money you make.  Next, protect your money.  And finally, you increase and make more. Using Infinite Banking (also known as Privatized Banking) is part of protecting your money in stage 2. But it’s also a golden key that improves every other area of your financial life.  Here’s how: It helps you be more efficient with money you already make, keeping and controlling more of it. The insurance component protects your human life value by providing a death benefit to your loved ones, even if you didn’t get the chance to create wealth during your lifetime. The accessibility supports your abundance mindset with an emergency/opportunity fund that provides safety and no-loss provisions. It supplies the capital to invest in cash-flowing assets like real estate and business. Your cash value serves as a storage tank while money is waiting to be used. You earn uninterrupted compound interest on your money, so you don’t chisel away your wealth potential by resetting the compounding. The opportunity to have your money working in 2 places at the same time. Accelerate your path to time and money freedom. Tax-advantaged growth and a tax-free death benefit to take care of your family and maintain your legacy. Who Is Nelson Nash? Nelson Nash is the discoverer and developer of The Infinite Banking Concept® and the author of Becoming Your Own Banker. A native of Georgia, Nash received a B.S. Degree in Forestry from the University of Georgia, 1952. From 1954-1963, Nash worked as a Consulting Forester in eastern North Carolina. During more than 35 years’ experience as a Life Insurance Agent, Nash worked with The Equitable Life Assurance Society of the U.S. and with The Guardian. Recognized for his high achievements, Nash was inducted as a Hall of Fame Member by Equitable, a Chartered Life Underwriter, and Life Member of the Million Dollar Round Table. A pilot for 71 years, Nash flew with the Army National Guard and earned Master Aviator Wings during his 30 years of military service. He has been married to Mary W. Nash for more than 65 years. The couple lives in Birmingham, Alabama and have three children, ten grandchildren, and eight great-grandchildren, with the 9thon the way. Conversation Highlights (Partial Transcript) Life Insurance Cash Value Provides Accessibility (17:10 – Nelson Nash) … we're talking about needing over $800,000 at 23% interest.  Now I saw very plainly at that time that I could get the money at 5%, 6%, and 8% interest from three different life insurance companies from cash value alone, but I had nowhere near the amount of volume that it took to do what nee...  

Nelson Nash is an exceptional thinker who discovered a secret to prosperity that was too good to keep to himself. The Infinite Banking Concept® was born when he noticed what was already possible inside cash value life insurance; the ability to earn interest, gain access to capital and take control of your financial life.  Since then, he’s poured his life into providing education about life insurance, making it plain so that others could prosper.  Through his life and work, Nelson has woven a rich legacy that continues to empower.

After reading his book, Becoming Your Own Banker, early on in business, my husband and I quickly implemented these ideas in our own lives.  We secured a dividend-paying whole life insurance policy that we’ve since used to invest in ourselves and our business.  Our financial education journey led to meeting Bruce’s team, where we also met Nelson in person.  We took him out to lunch, and I told him that someday, we would have a podcast, and wanted to interview him before he finished his speaking career.  Looks like we made it!

We are so honored and grateful for the opportunity to share Nelson Nash’s story and wisdom with you.

 

Where Infinite Banking Fits into the Cash Flow System

Inside The Money Advantage Cash Flow System, you first increase cash flow by keeping more of the money you make.  Next, protect your money.  And finally, you increase and make more.Privatized Banking

Using Infinite Banking (also known as Privatized Banking) is part of protecting your money in stage 2.

But it’s also a golden key that improves every other area of your financial life.  Here’s how:

  • It helps you be more efficient with money you already make, keeping and controlling more of it.
  • The insurance component protects your human life value by providing a death benefit to your loved ones, even if you didn’t get the chance to create wealth during your lifetime.
  • The accessibility supports your abundance mindset with an emergency/opportunity fund that provides safety and no-loss provisions.
  • It supplies the capital to invest in cash-flowing assets like real estate and business.
  • Your cash value serves as a storage tank while money is waiting to be used.
  • You earn uninterrupted compound interest on your money, so you don’t chisel away your wealth potential by resetting the compounding.
  • The opportunity to have your money working in 2 places at the same time.
  • Accelerate your path to time and money freedom.
  • Tax-advantaged growth and a tax-free death benefit to take care of your family and maintain your legacy.

Who Is Nelson Nash?

Nelson Nash is the discoverer and developer of The Infinite Banking Concept® and the author of Becoming Your Own Banker.

A native of Georgia, Nash received a B.S. Degree in Forestry from the University of Georgia, 1952. From 1954-1963, Nash worked as a Consulting Forester in eastern North Carolina.

During more than 35 years’ experience as a Life Insurance Agent, Nash worked with The Equitable Life Assurance Society of the U.S. and with The Guardian. Recognized for his high achievements, Nash was inducted as a Hall of Fame Member by Equitable, a Chartered Life Underwriter, and Life Member of the Million Dollar Round Table.

A pilot for 71 years, Nash flew with the Army National Guard and earned Master Aviator Wings during his 30 years of military service.

He has been married to Mary W. Nash for more than 65 years. The couple lives in Birmingham, Alabama and have three children, ten grandchildren, and eight great-grandchildren, with the 9thon the way.

Conversation Highlights (Partial Transcript)

Life Insurance Cash Value Provides Accessibility

(17:10 – Nelson Nash) … we’re talking about needing over $800,000 at 23% interest.  Now I saw very plainly at that time that I could get the money at 5%, 6%, and 8% interest from three different life insurance companies from cash value alone, but I had nowhere near the amount of volume that it took to do what needed to be done.  I saw that if I would find a way to increase my premiums big time that I could get rid of the snakes and dragons and never see them anymore.  Well, you can’t do this overnight.  That’s why it’s so important to think long-range and understand that you won’t get immediate results.Nelson Nash Father of The Infinite Banking Concept

(18:52 – Rachel) It’s really about having access to capital. We don’t often look at life insurance as a financing tool, or as a place to get capital we can access, and yet that’s one of the most important functions of the cash value.

History, Austrian Economics, and Banking

(20:12 – Nelson Nash) If you go to the reading list on our website, there’s a Resources tab. There are about 110 different books about economics and 135 books on history.  You can’t divide history and economics at all; its hand in glove. When you read all these books, you have one Ph.D. in Austrian economics and another Ph.D. in history. You’ll come face to face with the fundamental problem that banking is in the hands of the wrong people; it should be at the you-and-me level.

Policy Design and Infinite Banking

(23:05 – Nelson Nash) To accommodate what I’m teaching you, you have to go to high premium, low death benefit policies.

(23:40 – Nelson Nash) The real problem again, we’re back to classification. Dividend-paying whole life insurance should have never been called insurance.

When you buy insurance on your automobile, is all predicated upon if something happens to damage your automobile or somebody else’s automobile or property during a time frame. Every other form of insurance is predicated on the word if and a time frame.

Now, look, life is not if. It’s when. We’re going to graduate one of these days, no matter who we are.

When they came up with the idea of whole life insurance, they should never have called it insurance because of its major characteristics.  You need a greater cash base to be able to do this. It was totally backward from the way that insurance companies thought.

Other Topics Discussed

  • How he salvaged a significant error in business during a time of soaring interest rates by borrowing cash value of life insurance.
  • Nelson Nash’s background in forestry, real estate, life insurance, and Austrian economics.
  • Nelson’s experience teaching and sharing The Infinite Banking Concept®.

More from Nelson Nash

The Nelson Nash Institute has ample resources: newsletters, in-depth articles, shows, events, and continued work with Carlos Lara and Robert Murphy available at infinitebanking.org.  Through an annual think tank and the practitioner’s program, the Nelson Nash Institute authorizes and trains practitioners who can help you implement these strategies in your personal economy.

If you would like to get a copy of Becoming Your Own Banker, visit infinitebanking.org/individuals.

Create Your Time and Money Freedom

The Money Advantage team has authorized practitioners to help you implement The Infinite Banking Concept®. Through these strategies, you can effectively store your capital where you have safety, liquidity, and growth AND use it to invest in cash-flowing assets to build Time and Money Freedom.

If you would like to see how you can use Infinite Banking personally, contact us today.

With a Financial Picture Conversation, we’ll help you maximize your wealth today and, in the future, by:

  • Discovering money flowing into your control and money flowing out of your control
  • Strategizing ways to have more money flowing into your control
  • With the End Result being more money to utilize during your lifetime, and more to give to future generations

Email us at hello@themoneyadvantage.com to share your comments, questions, and feedback with us.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

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  - Nelson Nash is an exceptional thinker who discovered a secret to prosperity that was too good to keep to himself. The Infinite Banking Concept® was born when he noticed what was already possible inside cash value life insurance; the ability to ear...
Nelson Nash is an exceptional thinker who discovered a secret to prosperity that was too good to keep to himself. The Infinite Banking Concept® was born when he noticed what was already possible inside cash value life insurance; the ability to earn interest, gain access to capital and take control of your financial life.  Since then, he’s poured his life into providing education about life insurance, making it plain so that others could prosper.  Through his life and work, Nelson has woven a rich legacy that continues to empower.

After reading his book, Becoming Your Own Banker, early on in business, my husband and I quickly implemented these ideas in our own lives.  We secured a dividend-paying whole life insurance policy that we’ve since used to invest in ourselves and our business.  Our financial education journey led to meeting Bruce’s team, where we also met Nelson in person.  We took him out to lunch, and I told him that someday, we would have a podcast, and wanted to interview him before he finished his speaking career.  Looks like we made it!

We are so honored and grateful for the opportunity to share Nelson Nash’s story and wisdom with you.

 


Where Infinite Banking Fits into the Cash Flow System
Inside The Money Advantage Cash Flow System, you first increase cash flow by keeping more of the money you make.  Next, protect your money.  And finally, you increase and make more.

Using Infinite Banking (also known as Privatized Banking) is part of protecting your money in stage 2.

But it’s also a golden key that improves every other area of your financial life.  Here’s how:

* It helps you be more efficient with money you already make, keeping and controlling more of it.
* The insurance component protects your human life value by providing a death benefit to your loved ones, even if you didn’t get the chance to create wealth during your lifetime.
* The accessibility supports your abundance mindset with an emergency/opportunity fund that provides safety and no-loss provisions.
* It supplies the capital to invest in cash-flowing assets like real estate and business.
* Your cash value serves as a storage tank while money is waiting to be used.
* You earn uninterrupted compound interest on your money, so you don’t chisel away your wealth potential by resetting the compounding.
* The opportunity to have your money working in 2 places at the same time.
* Accelerate your path to time and money freedom.
* Tax-advantaged growth and a tax-free death benefit to take care of your family and maintain your legacy.

Who Is Nelson Nash?
Nelson Nash is the discoverer and developer of The Infinite Banking Concept® and the author of Becoming Your Own Banker.

A native of Georgia, Nash received a B.S. Degree in Forestry from the University of Georgia, 1952. From 1954-1963, Nash worked as a Consulting Forester in eastern North Carolina.

During more than 35 years’ experience as a Life Insurance Agent, Nash worked with The Equitable Life Assurance Society of the U.S. and with The Guardian. Recognized for his high achievements, Nash was inducted as a Hall of Fame Member by Equitable, a Chartered Life Underwriter, and Life Member of the Million Dollar Round Table.

A pilot for 71 years, Nash flew with the Army National Guard and earned Master Aviator Wings during his 30 years of military service.

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Bruce Wehner & Rachel Marshall clean 57:51
Taking Time Off Can Increase Your Productivity and Better Your Company (Reviewed) – TMA 044 https://themoneyadvantage.com/taking-time-off-increase-productivity-better-your-company/ Mon, 10 Sep 2018 09:00:49 +0000 https://themoneyadvantage.com/?p=2875 For the business owner who wants to perform at their best and make the most out of life, the answer may be in working less, not more.  In his insightful article Taking Time Off Can Increase Your Productivity and Better Your Company, Dan Sullivan, of Strategic Coach, reveals the leverage that taking time off can give your work life, your non-work life, your company, and your employees. His advice runs against the grain of our culture that is addicted to workaholism.  We live on caffeine, harried, hurried, incessantly busy, multitasking, distracted and idolizing the hustle.  Embracing a slower pace seems to be a sign of weakness. But sometimes the things we think are making us better, are actually making us worse. Taking time off helps you get more done, not less. It’s time to view free time as a necessity, not just a delicacy. Free time isn’t just a reward for hard work; it’s a necessary prerequisite for doing good work. Why Taking Time off Works Taking time off refreshes and rejuvenates you, giving you more creativity, and fresh ideas to innovate. When you take time away from your business, it requires you to streamline systems, processes, technology, and your team, instead of relying on yourself.  The result is that you increase your output, without increasing your input.  You become the leader that sets the standard, modeling a culture of valuing yourself, which improves the company culture and decreases burnout, turnover, and associated costs. Best of all, it develops you into an interesting multi-dimensional person who can enjoy life now.  It gives you the room to excel in your health, family, friendships, hobbies, and create a life of meaningful experiences. Sullivan not only teaches this way of life, but he also champions it in his own life.  He uses the Entrepreneurial Time System, a plan of focus days, buffer days, and free days.  He shares his personal rule to work only 210 days per year. When he takes time off, he completely unplugs, being completely unreachable by phone or email.  This requires him to develop a team he trusts, and then trust them to work well.  It’s the way to build a truly self-managing company, an asset that produces revenue independent of the time you contribute.  That’s how you move out of the rat race of trading time for money. While we aren’t there yet in our own lives, we’re using these principles to value our creativity and contribution, work with more focus, and take more time away from our work.  This helps us build a bigger vision. What about you?  What are your rules about taking time off?  How will you give yourself more freedom to enjoy life today and take time off? Get More out of Your Money Without Working Harder If you would like to optimize your financial life so that you can get more out of your money without working harder, gain more enjoyment satisfaction and abundance, contact us to request a financial picture conversation. We’ll help you maximize your wealth today and, in the future, by: Discovering money flowing into your control and money flowing out of your control Strategizing ways to have more money flowing into your control With the End Result being more money to utilize during your lifetime, and more to give to future generations Email us at hello@themoneyadvantage.com to share your comments, questions, and feedback with us. Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love. For the business owner who wants to perform at their best and make the most out of life, the answer may be in working less, not more.  In his insightful article Taking Time Off Can Increase Your Productivity and Better Your Company, Dan Sullivan, of Strategic Coach, reveals the leverage that taking time off can give your work life, your non-work life, your company, and your employees.

His advice runs against the grain of our culture that is addicted to workaholism.  We live on caffeine, harried, hurried, incessantly busy, multitasking, distracted and idolizing the hustle.  Embracing a slower pace seems to be a sign of weakness.

But sometimes the things we think are making us better, are actually making us worse.

Taking time off helps you get more done, not less.

It’s time to view free time as a necessity, not just a delicacy.

Free time isn’t just a reward for hard work; it’s a necessary prerequisite for doing good work.

Why Taking Time off Works

Taking time off refreshes and rejuvenates you, giving you more creativity, and fresh ideas to innovate. When you take time away from your business, it requires you to streamline systems, processes, technology, and your team, instead of relying on yourself.  The result is that you increase your output, without increasing your input.  You become the leader that sets the standard, modeling a culture of valuing yourself, which improves the company culture and decreases burnout, turnover, and associated costs.

Best of all, it develops you into an interesting multi-dimensional person who can enjoy life now.  It gives you the room to excel in your health, family, friendships, hobbies, and create a life of meaningful experiences.Taking Time Off Can Increase Your Productivity and Better Your Company

Sullivan not only teaches this way of life, but he also champions it in his own life.  He uses the Entrepreneurial Time System, a plan of focus days, buffer days, and free days.  He shares his personal rule to work only 210 days per year. When he takes time off, he completely unplugs, being completely unreachable by phone or email.  This requires him to develop a team he trusts, and then trust them to work well.  It’s the way to build a truly self-managing company, an asset that produces revenue independent of the time you contribute.  That’s how you move out of the rat race of trading time for money.

While we aren’t there yet in our own lives, we’re using these principles to value our creativity and contribution, work with more focus, and take more time away from our work.  This helps us build a bigger vision.

What about you?  What are your rules about taking time off?  How will you give yourself more freedom to enjoy life today and take time off?

Get More out of Your Money Without Working Harder

If you would like to optimize your financial life so that you can get more out of your money without working harder, gain more enjoyment satisfaction and abundance, contact us to request a financial picture conversation.

We’ll help you maximize your wealth today and, in the future, by:

  • Discovering money flowing into your control and money flowing out of your control
  • Strategizing ways to have more money flowing into your control
  • With the End Result being more money to utilize during your lifetime, and more to give to future generations

Email us at hello@themoneyadvantage.com to share your comments, questions, and feedback with us.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

]]>
For the business owner who wants to perform at their best and make the most out of life, the answer may be in working less, not more.  In his insightful article Taking Time Off Can Increase Your Productivity and Better Your Company, Dan Sullivan, Taking Time Off Can Increase Your Productivity and Better Your Company, Dan Sullivan, of Strategic Coach, reveals the leverage that taking time off can give your work life, your non-work life, your company, and your employees.

His advice runs against the grain of our culture that is addicted to workaholism.  We live on caffeine, harried, hurried, incessantly busy, multitasking, distracted and idolizing the hustle.  Embracing a slower pace seems to be a sign of weakness.

But sometimes the things we think are making us better, are actually making us worse.

Taking time off helps you get more done, not less.

It’s time to view free time as a necessity, not just a delicacy.
Free time isn’t just a reward for hard work; it’s a necessary prerequisite for doing good work.

Why Taking Time off Works
Taking time off refreshes and rejuvenates you, giving you more creativity, and fresh ideas to innovate. When you take time away from your business, it requires you to streamline systems, processes, technology, and your team, instead of relying on yourself.  The result is that you increase your output, without increasing your input.  You become the leader that sets the standard, modeling a culture of valuing yourself, which improves the company culture and decreases burnout, turnover, and associated costs.

Best of all, it develops you into an interesting multi-dimensional person who can enjoy life now.  It gives you the room to excel in your health, family, friendships, hobbies, and create a life of meaningful experiences.

Sullivan not only teaches this way of life, but he also champions it in his own life.  He uses the Entrepreneurial Time System, a plan of focus days, buffer days, and free days.  He shares his personal rule to work only 210 days per year. When he takes time off, he completely unplugs, being completely unreachable by phone or email.  This requires him to develop a team he trusts, and then trust them to work well.  It’s the way to build a truly self-managing company, an asset that produces revenue independent of the time you contribute.  That’s how you move out of the rat race of trading time for money.

While we aren’t there yet in our own lives, we’re using these principles to value our creativity and contribution, work with more focus, and take more time away from our work.  This helps us build a bigger vision.

What about you?  What are your rules about taking time off?  How will you give yourself more freedom to enjoy life today and take time off?
Get More out of Your Money Without Working Harder
If you would like to optimize your financial life so that you can get more out of your money without working harder, gain more enjoyment satisfaction and abundance, contact us to request a financial picture conversation.

We’ll help you maximize your wealth today and, in the future, by:

* Discovering money flowing into your control and money flowing out of your control
* Strategizing ways to have more money flowing into your control
* With the End Result being more money to utilize during your lifetime, and more to give to future generations

Email us at clean 23:52
Opportunity Cost: The Invisible Cost of Financing – TMA 043 https://themoneyadvantage.com/opportunity-cost-the-invisible-cost-of-financing/ Mon, 03 Sep 2018 09:00:17 +0000 https://themoneyadvantage.com/?p=2869 Opportunity cost, like the submerged portion of an iceberg, is a part of your financial decisions hidden from view.  While odorless, colorless, tasteless, and silent, opportunity cost is a threat to your wealth creation.  This wealth restrictor is no respecter of persons or purchase types.  Opportunity cost is the tag-along to every financial decision you’ll ever make, whether you finance or pay cash.  Because a dollar is a seed, every time a dollar leaves your economy, it takes along with it the harvest it had the possibility to create in your lifetime. The repercussions of every choice to use your money continue to echo throughout the rest of your life and legacy.  And just as with icebergs, what’s beneath the surface, is often more important, and much more substantial. Earlier in the Series on Debt Previously, in Why Debt Free Doesn’t Make You Financially Free, we demonstrated clearly what debt is and what it isn’t, and that rushing frantically to pay off loans may be one of the riskiest financial moves you can make. Then, in The Right Way to Spend Money: Spender, Saver, or Steward? we discovered the limitations of both the Spender and the Saver.  We also uncovered the superpowers of the Steward to create wealth through control, access to capital, and uninterrupted compound interest. The Whole Truth About the Whole Cost of Financing Now, let’s pull the curtain back to look at the behind-the-scenes cost of financing.  We’ll help you discover the truth, the whole truth, and nothing but the truth, in each method of financing.  You'll see why your purchasing method, more than what you purchase, makes the most difference in your control or loss of control. We’ll answer: What are the real, costs of financing over time? What are the real, costs of paying cash over time? How do I evaluate the entire cost of my financing options to make the best decisions that give me the most control? Instead of considering only the face value cost and judging the book by its cover, you’ll gain insight into the opportunity cost of any capital outlay, so you can understand what’s inside each purchasing decision.  Rather than purchasing big ticket items in a way to avoid something out of fear, you’ll see the path to making empowered decisions that increase your wealth potential.  You’ll go from taking mental shortcuts in purchasing that make you lose control, to a system of thinking that puts you in greater control. Where Opportunity Cost Fits into Your Cash Flow System Limiting your opportunity cost is just one part of your Survival to Significance Cash Flow System. The more you reduce the money leaking out of your control today, the smaller your opportunity costs over time.  Consequently, the more wealth you have to protect and turn into streams of income. #1: The Concept of Opportunity Cost The Cost and Opportunity Cost of Financing It’s easy to see that when you pay with a loan or credit, you’ll pay interest.  That’s the part of the financing decision above the surface, the cost of financing at face value. But over time, you give up a lot more than the dollars of interest. The bottom half of the iceberg – the opportunity cost of paying interest – is the echo of that expense.  It’s what those monthly payments could have earned for you, had you kept them.  In other words, opportunity cost is what you didn’t get.  The opportunity cost of financing is what you could have done instead if you didn’t have the payments.  It's what those payments could have grown into, if you’d been able to save and invest them instead. Easy enough, right? Why Paying Cash Seems More Sophisticated Than Using a Loan A loan’s obvious interest payment is the red flag of financing.  It warns, “Hey, when you pay interest, you’re paying more than the full cost of the item.  It’s costing you more than the face value, and it’s causing you to lose money.” This is why paying cash seems like a better decision than taking out ... Opportunity cost, like the submerged portion of an iceberg, is a part of your financial decisions hidden from view.  While odorless, colorless, tasteless, and silent, opportunity cost is a threat to your wealth creation.

This wealth restrictor is no respecter of persons or purchase types.  Opportunity cost is the tag-along to every financial decision you’ll ever make, whether you finance or pay cash.  Because a dollar is a seed, every time a dollar leaves your economy, it takes along with it the harvest it had the possibility to create in your lifetime.

The repercussions of every choice to use your money continue to echo throughout the rest of your life and legacy.  And just as with icebergs, what’s beneath the surface, is often more important, and much more substantial.

Earlier in the Series on Debt

Previously, in Why Debt Free Doesn’t Make You Financially Free, we demonstrated clearly what debt is and what it isn’t, and that rushing frantically to pay off loans may be one of the riskiest financial moves you can make.

Then, in The Right Way to Spend Money: Spender, Saver, or Steward? we discovered the limitations of both the Spender and the Saver.  We also uncovered the superpowers of the Steward to create wealth through control, access to capital, and uninterrupted compound interest.

The Whole Truth About the Whole Cost of Financing

Now, let’s pull the curtain back to look at the behind-the-scenes cost of financing.  We’ll help you discover the truth, the whole truth, and nothing but the truth, in each method of financing.  You’ll see why your purchasing method, more than what you purchase, makes the most difference in your control or loss of control.

We’ll answer:

  1. What are the real, costs of financing over time?
  2. What are the real, costs of paying cash over time?
  3. How do I evaluate the entire cost of my financing options to make the best decisions that give me the most control?

Instead of considering only the face value cost and judging the book by its cover, you’ll gain insight into the opportunity cost of any capital outlay, so you can understand what’s inside each purchasing decision.  Rather than purchasing big ticket items in a way to avoid something out of fear, you’ll see the path to making empowered decisions that increase your wealth potential.  You’ll go from taking mental shortcuts in purchasing that make you lose control, to a system of thinking that puts you in greater control.

Where Opportunity Cost Fits into Your Cash Flow System

Limiting your opportunity cost is just one part of your Survival to Significance Cash Flow System.Money Finder

The more you reduce the money leaking out of your control today, the smaller your opportunity costs over time.  Consequently, the more wealth you have to protect and turn into streams of income.

#1: The Concept of Opportunity Cost

The Cost and Opportunity Cost of Financing

It’s easy to see that when you pay with a loan or credit, you’ll pay interest.  That’s the part of the financing decision above the surface, the cost of financing at face value.

But over time, you give up a lot more than the dollars of interest.

The bottom half of the iceberg – the opportunity cost of paying interest – is the echo of that expense.  It’s what those monthly payments could have earned for you, had you kept them.  In other words, opportunity cost is what you didn’t get.  The opportunity cost of financing is what you could have done instead if you didn’t have the payments.  It’s what those payments could have grown into, if you’d been able to save and invest them instead.

Easy enough, right?

Why Paying Cash Seems More Sophisticated Than Using a Loan

A loan’s obvious interest payment is the red flag of financing.  It warns, “Hey, when you pay interest, you’re paying more than the full cost of the item.  It’s costing you more than the face value, and it’s causing you to lose money.”

This is why paying cash seems like a better decision than taking out a loan.  The apparent cost is less since you don’t have to add in the interest.  Consequently, it seems like you’re keeping more of your money.

But Paying Cash Is Expensive, Too

However, – a really big however – paying cash has a cost and an opportunity cost, too!Opportunity Cost - The Invisible Cost of Financing

The cost of paying cash is the cash itself.  The opportunity cost of paying cash is the interest the cash could have earned, had you kept it, that you no longer get to earn because you don’t have the cash.

We humans have a funny way of looking at loss.  If you had something and then lost it, we consider that a loss.  But if you had the potential to get something, and then lost that potential, that type of loss is a bit harder to wrap our brain around.

The interest you pay when you finance is money you had that’s being taken away.  That’s why it’s an apparent loss.  What’s harder to see is what your cash could have done for you, had you kept it.

Additionally, the low-interest rate environment saps our creativity.  We can’t possibly see how we could earn much on our cash, causing us to have no idea of our true potential.  Imagine you could get a higher return on your savings.  Would that change the equation for you?  What if you knew you could save your cash and earn between 3 – 5% on your money while it was waiting to be used, and then could also invest it at 12% cash-on-cash returns in real estate or businesses?  Would that help you see how valuable your cash is?  Remember, opportunity seeks liquidity.

The opportunity cost of cash is the part of the financing iceberg that lurks beneath the surface of the water.  The submerged part of the iceberg that tragically sunk the Titanic is the same hidden blind spot in most people’s financial decision-making that could sink you too.

You Finance Everything You Buy

I’ll admit, the word financing is a little deceptive because it seems that it means to get a loan.

However, financing simply means “the process of providing funds.”

When you get a loan, you use the funds of another party and pay a premium to do so.  The premium for using other people’s money is the interest you pay.

But, when you pay cash, you don’t avoid the premium, it just comes in a different form.

When you pay cash, you self-finance by providing your own funds. To make the purchase, you deplete your cash reserves.  The money leaving your control takes along with it the interest it could have earned, had you kept the cash.

All capital, regardless of whether it’s yours, the banks’, or an investors’, has a cost.

This boils down to the Interest Principle.

The Interest Principle: You are always paying interest. 

You either pay interest when you finance, or you give up the interest you could have earned when you pay cash.

If There’s a Cost, There’s Always a Corresponding Opportunity Cost

When there’s an iceberg visible above the water, there’s always a corresponding mass of ice beneath the water as well.  Likewise, whenever you have a cost, there’s always an opportunity cost.

When you take a loan, you pay interest.  The monthly payments are your cost.  Your opportunity cost is what the payments could have earned for you over time, had you kept them.

Similarly, when you pay cash, your cost is the cash itself.  Your opportunity cost is the interest you could have earned on that cash, had you kept it.

Opportunity Cost over Time

You can best understand opportunity cost if you zoom way out from living in your life and look at the impacts of your decisions over time. Imagine taking off in a jet, high above the timeline of your life, and viewing all of your lifespan in one glimpse.

Your Wealth Potential

If you were to measure all of the dollars that flow into your hands during your lifetime, you’d be astonished by the impressive quantity.  For example, a $100K income earned each year, over 40 working years, is a total of $4 Million.  This is the income potential.

Your income potential is the sum total of all the money you’ll ever earn. You calculate your income potential by simply adding each year’s income to the next year’s throughout your working career.

Every dollar you earn, if saved or invested, converts from income potential to wealth potential.

On the earning side, you’d be even more astounded if you fully maximize your income by completely developing your potential to create value.

On the investing side, if you put every one of those dollars to its highest use, investing in cash-flowing assets you know and control, you would create surely time and money freedom.

For the ease of understanding, let’s just imagine you invest ALL of those $100,000 every year, for 40 years, and could earn an annual 5% on your money.  At the end of 40 years, you’d have over $12 Million!  That is the wealth potential in this example.

Now, no one can save and invest every dollar they earn.  Much of our money is used up in some way, exiting your personal economy, never to work for you again.

Every Dollar That Exits Your Personal Economy Erodes Your Wealth Potential

If we examine the seed-like potential stored in each dollar that comes through our hands, we realize the jeopardy we place our wealth in when we eat or spend, our seeds.

Let’s look at it this way.  If you had $100,000, put it to work for 30 years at 5% annual return, compounded monthly, without adding any new money or taking anything out, you’d end up with about $447K (green bars). Opportunity Cost IMG1

Two things that will maximize your wealth potential:

  1. The more of today’s dollars you put to work, and
  2. The longer you let them work for you

 

 

When you put more money to work for longer, you realize more of your wealth potential.  The opposite is also true.  The less of your money you put to work, for less time, the less of your wealth potential you realize.

The opportunity cost is what the dollar can no longer produce for you throughout your entire lifespan because it vanished from your personal economy.Opportunity Cost IMG2

If you spent $90K of your original $100K, it can’t work for you, and the future years of growth on that $90K are lost forever.  Instead, you invest only $10,000 at 5% over 30 years, ending up with about $45K (red bars).  Using your $90K shrank your wealth potential by about 90%, or by $402,000.

In this example, $90,000 is what you spent, but $402,000 is the opportunity cost of using this money.  It’s the wealth that you didn’t create. Opportunity Cost IMG3

Paying Cash Resets the Compound Interest Curve

Another way to see the opportunity cost of paying cash is to watch the compound interest curve reset every time you use your cash.  If you use your $100K just once, even if you put it all back over 5 years, you end up with about $386K.  You give up about $61K that money would have created by year 30, just because you pushed back the start of your compounding (see the gold bars with just one dip).Opportunity Cost IMG4

Imagine if you do what so many cash-payers do – stocking their cash account, using it up, and then restocking again – throughout a lifetime!  (See the gold bars that dip multiple times.)  You never give your money a chance to grow.

Therefore, opportunity cost is the erosion of your wealth potential over the rest of your life, caused by today’s financial decisions.

Comparing the Opportunity Costs of the Saver and the Steward

To bring this idea out of the shadows of the intangible, here’s an example to make it more concrete.

Imagine you had $100,000 of cash and wanted to buy a business that costs $100,000.  You’re debating whether to pay cash or use a loan.  For illustrative purposes, we’ll assume it’s possible to take a loan for the full amount without a down payment.

How should you pay for it to limit your costs and opportunity costs over time?

Last time, we discussed the three ways to purchase:

  1. The Spender finances, because they have no cash, and financing with an unsecured loan is their only option.
  2. The Saver pays cash to avoid paying interest.
  3. The Steward uses a Private Reserve to keep their cash, financing with a secured loan collateralized by their cash.

For today’s purpose, we’ll compare an example between the Saver and the Steward.  We’re taking the Spender’s strategy off the table because in this case, you already have the cash to pay in full.  You’re now deciding whether to pay cash and save the interest, or finance and pay interest so you can keep your cash.

That’s really the difference between the Saver and the Steward.  Both have cash.  They just choose to make the purchase differently.

We’ll look at the measurable impacts, not only right away, but over time.

Ensuring a True Comparison

To make a valid comparison, we must change only one variable.  We’ll look at both examples over the same timeframe of 30 years, with equal interest rates in both cases: 5% crediting rate and 5% borrowing rate.  Our only difference will be whether we pay cash or finance.

Here, again, you may feel this is unrealistic to earn an interest rate equal to what you’d pay on borrowed money.  Low returns on your savings are one of the reasons it’s so hard to envision this concept.  For now, persevere in understanding this idea, and then we’ll discuss how to get a higher return on savings and how to think about opportunity cost in spite of uneven interest rates.

Visible Cost

If you take a $100,000 loan at 5% over 30 years, you’d have a monthly payment of $537.  Your outflow over the course of the loan will be $193,256, costing you $93,256 of interest over and above the purchase price.

If instead, you pay cash, your outflow will be only $100,000.

Opportunity Cost

Let’s look at the whole costs over time.

On the one hand, if you pay cash, you give up your $100,000 and what it could have earned for you.  Remember, opportunity cost is what you didn’t get.  $100,000 earning 5% annually for 30 years, compounded monthly, would have grown to $446,774 by the end of those 30 years.  Paying cash causes you to give up $346,774 of interest you won’t create because you used up the cash.

On the other hand, if you finance, you give up cash in the form of a monthly payment of $537 for the next 360 months.  Since opportunity cost is what you didn’t get, let’s consider what you could have done with $537 each month if you hadn’t had the payment.  If each of those payments had been saved each month and earned 5%, your account could have grown to $446,774 at the end of the 30 years.  Financing causes you to give up the ability to save up those payments each month and what they could create.

If you pay cash, your opportunity cost is $446,774.  If you finance, your opportunity cost is $446,774. Both options cost you the same! No matter whether you paid cash or financed the $100,000 equipment purchase, the $100,000 decision today cost you $446,774 over the next 30 years!

No matter whether you paid cash or financed the $100,000 equipment purchase, the $100,000 decision today cost you $446,774 over the next 30 years!

I hope it’s apparent that paying cash has a cost, and that saving dollars of interest is the wrong thing to focus on if you want to maximize your wealth creation potential.

Here’s why: if the interest rate you pay and the interest rate you earn are equal, the opportunity cost of paying cash OR financing is equal at the end of the timeframe.  Both options deplete your future wealth creation by the same amount.

So, Who Wins?

In this example, it might seem like it doesn’t matter what you do.

However, let’s turn our attention away from what each person didn’t get, and towards their financial status – what they did get – over time.

If you look at the cash position of each person along the way, you’ll notice something interesting.

The person who financed was able to keep their cash.  Their cash account started with $100,000 the first year and grew upward to  $446,774 in year 30.

The person who paid cash started the first year by immediately dropping their cash account balance down to $0.  Over the next 360 months, they added $537/month back to the account, where it earned interest.  In year 30, they finish with the same $446,774.  It’s important to note that they didn’t just pay into the account the $100,000 principal, but a total of $193,320 of principal and interest.

During all 29 years, 11 months, and 29 days before the 30-year mark, the person who financed had more cash in their account that they could use for emergencies or opportunities.  They had a more secure financial footing all along the way.

Opportunity Cost IMG5

#3) Determine the Best Financing Decisions

The point is this: all capital has a cost.  To be most secure, you want to focus more on what you can earn than on what you pay.

You can reduce your opportunity cost by earning a higher rate on your cash or paying lower rates on financing.  Either will increase the spread and give you a greater advantage. Remember that having cash to use as collateral is one of the surest ways to pay lower rates on financing, so it benefits you in both ways.

To earn a higher return on your cash, consider using high cash value whole life insurance, which grows at rates easily 10X other liquid cash accounts.

Even if you pay a higher interest rate than you can earn, having cash at your disposal gives you control.  You’re in a more comfortable, relaxed position to think more clearly, make better decisions, and enjoy life more.

The Series on Debt

Check out the rest of the articles, podcasts, and videos in the series on debt here:

  1. Why Debt Free Doesn’t Make You Financially Free – TMA 037
  2. The Right Way to Spend Money: Spender, Saver, or Steward? – TMA 040
  3. The Invisible Cost of Financing: Opportunity Cost – TMA 043
  4. Cash Flow Index: The Smartest Way to Pay off Debt – TMA 046

Start Creating Wealth Today

The rest is up to you.

You can continue to undervalue the cost of your capital.  You’ll see only the face value of your spending decisions, ignore the opportunity cost, and chisel away at your wealth creation.

Or, you can recognize that all capital has a cost, even your own.  With a new respect for the cost of paying cash, you can step into a new paradigm as a Steward and wealth creator.  You’ll begin valuing your capital, earning a higher rate of return, and maintaining control.

Build Your Time and Money Freedom

To shrink your behind-the-scenes opportunity costs, and maximize your ability to earn uninterrupted compound interest, consider specially designed whole life insurance as a place to store cash.  You’ll earn a guaranteed return much higher than bank rates, as well as highly anticipated dividends, which increase the growth and performance of your cash value. Additionally, you can borrow against your cash value to earn an external rate of return on the same money at the same time, accelerating your wealth.

This strategy may be right for you if you’re already consistently saving cash or have cash reserves, but you’d like your cash to earn more and still be liquid and available to you.

To find out how to utilize this Privatized Banking strategy, contact us to request your Financial Picture Conversation, or email hello@themoneyadvantage.com to share your comments, questions, and feedback with us.

Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

]]> Opportunity cost, like the submerged portion of an iceberg, is a part of your financial decisions hidden from view.  While odorless, colorless, tasteless, and silent, opportunity cost is a threat to your wealth creation.  
This wealth restrictor is no respecter of persons or purchase types.  Opportunity cost is the tag-along to every financial decision you’ll ever make, whether you finance or pay cash.  Because a dollar is a seed, every time a dollar leaves your economy, it takes along with it the harvest it had the possibility to create in your lifetime.

The repercussions of every choice to use your money continue to echo throughout the rest of your life and legacy.  And just as with icebergs, what’s beneath the surface, is often more important, and much more substantial.


Earlier in the Series on Debt
Previously, in Why Debt Free Doesn’t Make You Financially Free, we demonstrated clearly what debt is and what it isn’t, and that rushing frantically to pay off loans may be one of the riskiest financial moves you can make.

Then, in The Right Way to Spend Money: Spender, Saver, or Steward? we discovered the limitations of both the Spender and the Saver.  We also uncovered the superpowers of the Steward to create wealth through control, access to capital, and uninterrupted compound interest.
The Whole Truth About the Whole Cost of Financing
Now, let’s pull the curtain back to look at the behind-the-scenes cost of financing.  We’ll help you discover the truth, the whole truth, and nothing but the truth, in each method of financing.  You'll see why your purchasing method, more than what you purchase, makes the most difference in your control or loss of control.

We’ll answer:

* What are the real, costs of financing over time?
* What are the real, costs of paying cash over time?
* How do I evaluate the entire cost of my financing options to make the best decisions that give me the most control?

Instead of considering only the face value cost and judging the book by its cover, you’ll gain insight into the opportunity cost of any capital outlay, so you can understand what’s inside each purchasing decision.  Rather than purchasing big ticket items in a way to avoid something out of fear, you’ll see the path to making empowered decisions that increase your wealth potential.  You’ll go from taking mental shortcuts in purchasing that make you lose control, to a system of thinking that puts you in greater control.
Where Opportunity Cost Fits into Your Cash Flow System
Limiting your opportunity cost is just one part of your Survival to Significance Cash Flow System.

The more you reduce the money leaking out of your control today, the smaller your opportunity costs over time.  Consequently, the more wealth you have to protect and turn into streams of income.
#1: The Concept of Opportunity Cost
The Cost and Opportunity Cost of Financing
It’s easy to see that when you pay with a loan or credit, you’ll pay interest.  That’s the part of the financing decision above the surface, the cost of financing at face value.

But over time, you give up a lot more than the dollars of interest.

The bottom half of the iceberg – the opportunity cost of paying interest – is the echo of that expense.  It’s what those monthly payments could have earned for you, had you kept them.  In other words, opportunity cost is what you didn’t get.  The opportunity cost of financing is what you cou...]]>
Bruce Wehner & Rachel Marshall clean 36:01 Creating Cash Flow with Real Estate: J. Massey – TMA 042 https://themoneyadvantage.com/creating-cash-flow-with-real-estate-j-massey/ Mon, 27 Aug 2018 09:00:43 +0000 https://themoneyadvantage.com/?p=2841 If you’ve been in our community for a while, chances are, you love cash flow, and you know we do too!  You’re interested in quickly creating income streams with cash-flowing assets.  You want assets you know and control that produce income for you so that your source of income is not restricted to the money you can make from your business while you are working in it.  You likely already have your sights set on advancing your business to one that is self-sustaining, buying other businesses, or investing in real estate. And you’re hungry for ideas that may show you the unseen possibilities that already exist within your own financial situation.  For years, J. Massey has been creating cash flow with real estate and teaching others to do the same.  His stories of loss, success, and the wisdom he’s developed through that experience will inspire you and show you what’s possible in building your own cash-flowing asset portfolio. On a personal note, J. is a hero of mine!  I’ve followed his podcast for several years, where my thinking has been challenged and transformed, and I’ve been introduced to pivotal relationships.  Without even knowing it, J. has been a catalyst to much of my work.  To say I was a bit star struck to interview him is an understatement!  You’ll instantly fall in love with his thinking, his good-natured humor, and his genuine desire to solve problems and create value.  It’s such an honor to share this interview with you.   Where Real Estate Fits in the Cash Flow System To build time and money freedom, you first want as much cash flow as you can get today, by keeping more of the money you make.  Then, you protect what you’ve created.  Finally, you increase your income. Investing in cash-flowing assets like real estate is part of Stage 3 of the Cash Flow System. Who Is J. Massey? A full-time real estate investor, entrepreneur, popular podcast host, author, speaker, coach and all-around problem solver, J. Massey is well known for providing best-in-class advice and strategies to help new and experienced investors the world over. J.’s platform is simple… He invests his time looking for investment opportunities (a.k.a., problems to solve through real estate transactions), closing deals and teaching others how to find and manage similar opportunities, including getting deals at discounts and raising private capital to investing in multi-family properties, getting leads and negotiating the deal. By turning his real-world fieldwork into killer training courses, new and seasoned investors alike learn win-win solutions to solve real estate “problems” for buyers, sellers and other investors. J.’s cashflow-creation strategies are embraced on a global scale by people who want to learn better ways to achieve tangible success in real estate investing, and in his words become “bigger, badder, better real estate investors.” His growing network of “Cashflow Creators” is proof that J. practices what he teaches and teaches what he practices. J. is currently a landlord, lender, consultant, educator and highly sought mentor. He currently owns hundreds of units of properties and has completed hundreds more real estate transactions across several states. J.’s publishing credits include a book he co-authored titled “3 Money-Raising Questions.” In 2014, he released his highly acclaimed book, Cashflow Diary: 10 Steps to Creating Wealth in ANY Economy! Conversation Highlights (Partial Transcript) The Need to Take Ownership of Your Financial Destiny [20:50] The number one problem that every person literally on this planet right now has, is the fact that we do not have control over the value of the currency that we are currently using. We've got to level up our financial IQ to address that problem. Here's a very painful but true lesson: the cavalry is not coming. No white horse is coming over the mountain to rescue you financially. I found it out the hard way long before Obama was handing out bailouts…... If you’ve been in our community for a while, chances are, you love cash flow, and you know we do too!  You’re interested in quickly creating income streams with cash-flowing assets.  You want assets you know and control that produce income for you so t... cash flow, and you know we do too!  You’re interested in quickly creating income streams with cash-flowing assets.  You want assets you know and control that produce income for you so that your source of income is not restricted to the money you can make from your business while you are working in it.  You likely already have your sights set on advancing your business to one that is self-sustaining, buying other businesses, or investing in real estate. And you’re hungry for ideas that may show you the unseen possibilities that already exist within your own financial situation.

For years, J. Massey has been creating cash flow with real estate and teaching others to do the same.  His stories of loss, success, and the wisdom he’s developed through that experience will inspire you and show you what’s possible in building your own cash-flowing asset portfolio.

On a personal note, J. is a hero of mine!  I’ve followed his podcast for several years, where my thinking has been challenged and transformed, and I’ve been introduced to pivotal relationships.  Without even knowing it, J. has been a catalyst to much of my work.  To say I was a bit star struck to interview him is an understatement!  You’ll instantly fall in love with his thinking, his good-natured humor, and his genuine desire to solve problems and create value.  It’s such an honor to share this interview with you.

 


Where Real Estate Fits in the Cash Flow System
To build time and money freedom, you first want as much cash flow as you can get today, by keeping more of the money you make.  Then, you protect what you’ve created.  Finally, you increase your income.

Investing in cash-flowing assets like real estate is part of Stage 3 of the Cash Flow System.
Who Is J. Massey?
A full-time real estate investor, entrepreneur, popular podcast host, author, speaker, coach and all-around problem solver, J. Massey is well known for providing best-in-class advice and strategies to help new and experienced investors the world over.

J.’s platform is simple… He invests his time looking for investment opportunities (a.k.a., problems to solve through real estate transactions), closing deals and teaching others how to find and manage similar opportunities, including getting deals at discounts and raising private capital to investing in multi-family properties, getting leads and negotiating the deal.

By turning his real-world fieldwork into killer training courses, new and seasoned investors alike learn win-win solutions to solve real estate “problems” for buyers, sellers and other investors. J.’s cashflow-creation strategies are embraced on a global scale by people who want to learn better ways to achieve tangible success in real estate investing, and in his words become “bigger, badder, better real estate investors.” His growing network of “Cashflow Creators” is proof that J. practices what he teaches and teaches what he practices.

J. is currently a landlord, lender, consultant, educator and highly sought mentor. He currently owns hundreds of units of properties and has completed hundreds more real estate transactions across several states.

J.’s publishing credits include a book he co-authored titled “3 Money-Raising Questions.” In 2014, he released his highly acclaimed book, Cashflow Diary: 10 Steps to Creating...]]>
Bruce Wehner & Rachel Marshall clean 1:02:36
Staying Positive by Looking Backward (Reviewed) – TMA 041 https://themoneyadvantage.com/staying-positive-by-looking-backward/ Mon, 20 Aug 2018 09:00:08 +0000 https://themoneyadvantage.com/?p=2822 Dan Sullivan shares a profound perspective on goal-setting, exponential vision, and staying energized to continue progressing, in his article Staying Positive by Looking Backward.  We’re sharing this article, along with our experience of using these concepts, to help fortify your abundance mindset.  We know that developing a healthy, positive perspective is the secret weapon of the entrepreneur.  It energizes and encourages you, helping you build the life and business you love. Introduction to Dan Sullivan and Strategic Coach [2:14 – Bruce] Dan Sullivan has been coaching entrepreneurs since 1979. He says that you need to work on your business, not just in your business. Dan is a master thinker in thinking about your thinking. Looking backward is a way to not only think about your life and what you want to achieve but why you think about things in a certain way and how you want to achieve them. The 10 Times Multiplier [3:15 – Bruce] Dan is a big believer in what he calls the 10 times multiplier. He says that you grow exponentially when you look backward. Looking backward allows you to see how you were at one point, brings you clarity, and helps you move forward. You might be thinking that there's no way you can 10 times your income.  Maybe you’re already making, let's just say $200,000, and you don’t see the way to get to the $2 million mark. He says to think back to when you were only making $20,000. You increased your income 10 times, from $20K to $200K.  You can use that same growth pattern to 10 times your income from $200K to $2M. Why Looking Backward Helps You Stay Positive [4:25 – Rachel] When you set goals, instead of measuring the distance you have left to go before you arrive, look back at how far you've come. Looking forward to how far you still have yet to go, can be really discouraging. But when we look backward, we realize that we've done a lot already. That same person that we were that created that progress and advancement in the past is the same person that we are now who will carry that advancement and progress forward. 25-Year Vision, 90-Day Goals [5:12 - Bruce] Dan always says, have a 25-year vision, which some people would call a goal, but then look at it in 90-day increments. You're constantly looking at what you have achieved in the past 90 days, and that helps you stay motivated. If you look forward, think about how much further you have until the goal, that demotivates and discourages you, and you get down on yourself. But if you look at just 90 days, you’ll see what you accomplished in 90 days. 80% Perfect [5:50 – Bruce] Dan also has an 80% rule, where he says to get something 80% done, and then pass it on to somebody else. And then when they do it 80% of the way, all of a sudden, the project is 96% done. This keeps you motivated by also having fresh things to do, instead of trying to perfect that 80%. Goal-Setting [6:10 – Bruce] You have to set achievable goals, but your goals also have to be measurable. There's not a right way or wrong way to set goals and to measure your progress. If you only use the ideal as your goal, you're going to set yourself up for disappointment.  Instead, use the ideal as a vision. Have a 25-year vision of a bigger and better future, but set goals every 90 days for what you can actually achieve. The key to staying positive, inspired and motivated is looking backward.  It can inspire you to stay motivated in going forward. A Continually-Growing Vision [08:18 – Rachel] As entrepreneurs, we move forward and check one thing off the to-do list.  Then, all of a sudden, you have this bigger, better future that you're reaching for. That 25-year vision is a moving target out there that has expanded, and it's even bigger than it was before. And that's good, amazing in fact, that we have this ability to be flexible and continue to expand as we grow. But at the same time, that means we’ll never reach that vision because, Dan Sullivan shares a profound perspective on goal-setting, exponential vision, and staying energized to continue progressing, in his article Staying Positive by Looking Backward.  We’re sharing this article, Staying Positive by Looking Backward.

We’re sharing this article, along with our experience of using these concepts, to help fortify your abundance mindset.  We know that developing a healthy, positive perspective is the secret weapon of the entrepreneur.  It energizes and encourages you, helping you build the life and business you love.


Introduction to Dan Sullivan and Strategic Coach
[2:14 – Bruce] Dan Sullivan has been coaching entrepreneurs since 1979. He says that you need to work on your business, not just in your business.

Dan is a master thinker in thinking about your thinking.

Looking backward is a way to not only think about your life and what you want to achieve but why you think about things in a certain way and how you want to achieve them.
The 10 Times Multiplier
[3:15 – Bruce] Dan is a big believer in what he calls the 10 times multiplier. He says that you grow exponentially when you look backward. Looking backward allows you to see how you were at one point, brings you clarity, and helps you move forward.

You might be thinking that there's no way you can 10 times your income.  Maybe you’re already making, let's just say $200,000, and you don’t see the way to get to the $2 million mark. He says to think back to when you were only making $20,000. You increased your income 10 times, from $20K to $200K.  You can use that same growth pattern to 10 times your income from $200K to $2M.
Why Looking Backward Helps You Stay Positive
[4:25 – Rachel] When you set goals, instead of measuring the distance you have left to go before you arrive, look back at how far you've come.

Looking forward to how far you still have yet to go, can be really discouraging. But when we look backward, we realize that we've done a lot already.

That same person that we were that created that progress and advancement in the past is the same person that we are now who will carry that advancement and progress forward.
25-Year Vision, 90-Day Goals
[5:12 - Bruce] Dan always says, have a 25-year vision, which some people would call a goal, but then look at it in 90-day increments.

You're constantly looking at what you have achieved in the past 90 days, and that helps you stay motivated. If you look forward, think about how much further you have until the goal, that demotivates and discourages you, and you get down on yourself. But if you look at just 90 days, you’ll see what you accomplished in 90 days.
80% Perfect
[5:50 – Bruce] Dan also has an 80% rule, where he says to get something 80% done, and then pass it on to somebody else. And then when they do it 80% of the way, all of a sudden, the project is 96% done.

This keeps you motivated by also having fresh things to do, instead of trying to perfect that 80%.
Goal-Setting
[6:10 – Bruce] You have to set achievable goals, but your goals also have to be measurable. There's not a right way or wrong way to set goals and to measure your progress.

If you only use the ideal as your goal, you're going to set yourself up for disappointment.  Instead, use the ideal as a vision.

Have a 25-year vision of a bigger and better future, but set goals every 90 days for what you can actually achieve.

The key to staying positive, inspired and motivated is looking backward.  It can inspire you to stay motivated in going forward.
]]> Bruce Wehner & Rachel Marshall clean 22:35 The Right Way to Spend Money: Spender, Saver, or Steward? – TMA 040 https://themoneyadvantage.com/spend-money-spender-saver-steward/ Mon, 13 Aug 2018 09:00:47 +0000 https://themoneyadvantage.com/?p=2789 Alexander Pope said, “To err is human, to forgive divine.” Financially speaking, it would be more accurate to say, “to spend money is human, to create wealth divine.”  No one ever needed a lesson in how to buy things. In fact, with no restraint, we manage quite well to find plentiful ways to spend money.  How you spend money has the power to stunt or accelerate your wealth creation. Find out whether your purchase personality is a Spender, a Saver, or a Steward.  Learn the practical action steps to up-level your purchasing strategy to keep and control more of your money, starting from where you’re at. To help you spend money the right way, we’ll answer: What are my options for how I spend money? Am I a spender, a saver, or a steward? What are the impacts of each? What action steps can I take from where I am to spend money better and increase my future cash flow? Understanding your purchase personality will move you from impulse buying and scarcity-based decision-making to abundance-based wealth creation.  Instead of never getting ahead, you’ll spend money knowing that you’re increasing your wealth potential.  Rather than being out of control, you’ll gain control, options, and increased confidence in your financial future.   It's Not So Much What You Spend, It’s How You Spend It When you review your monthly cash flow, you’ll notice circumstances that call for you to go above and beyond your normal monthly spending.  These major purchases may be to maintain your lifestyle or improve it.  They may be emergencies, or opportunities, or just for fun. Whether it’s buying your next rental property, a business acquisition or expansion, buying a new car, putting tires on the old one, remodeling your kitchen, paying for your daughter’s wedding, your son’s college education, major purchases are outside your monthly spending plan and require additional thought and planning. The way you pay for these expenses has more significant impacts on your current and future cash flow than you realize. How you purchase makes a world of difference in your control or loss of control. So how will you pay for these future major purchases? You can know the best way, speculate, guess, dream, and even commit, but the best way to predict your future decision-making is to look honestly at your past decisions to figure out what mindset you used to arrive at where you are today. Where Spending Money Fits into Your Cash Flow System Spending money is just one part of the Survival to Significance Cash Flow System. How you spend money is a result of your mindset.  When you spend money the right way, you keep and control more money today, giving you more to save and invest in cash flowing assets. What’s Your Purchase Personality? Use this simple quiz to help you discover your purchase personality. Do you put money into savings each month? If no, you are a Spender. If yes, continue. Think back to your last large purchase, maybe it was an investment property, car, boat, remodel, wedding, vacation.  Did you have enough in savings to have the option to pay cash? If no, you may be a Spender. If yes, continue. Did you choose to pay cash? If yes, you might be a Saver. If no, continue. Did you keep your cash and finance the purchase? If yes, you may be a Steward. The Three Ways to Spend Money Two of the most common perspectives, which the majority of people ascribe to, are rooted in scarcity.  The third, rare perspective is from a place of abundance. Scarcity: a mindset and position rooted in the fear of lack, limits, and “not enough” The Spender The Spender's desire to enjoy money and life is right and good; however, their motivation is fear of not enjoying life.  They often have an unruly appetite to spend.  It could be said that they work so that they have money to spend.  They spend everything they make each month in pursuit of the highest quality of life they can obtain immediately. Alexander Pope said, “To err is human, to forgive divine.” Financially speaking, it would be more accurate to say, “to spend money is human, to create wealth divine.”  No one ever needed a lesson in how to buy things. In fact, with no restraint,
To help you spend money the right way, we’ll answer:

* What are my options for how I spend money?
* Am I a spender, a saver, or a steward?
* What are the impacts of each?
* What action steps can I take from where I am to spend money better and increase my future cash flow?

Understanding your purchase personality will move you from impulse buying and scarcity-based decision-making to abundance-based wealth creation.  Instead of never getting ahead, you’ll spend money knowing that you’re increasing your wealth potential.  Rather than being out of control, you’ll gain control, options, and increased confidence in your financial future.

 


It's Not So Much What You Spend, It’s How You Spend It
When you review your monthly cash flow, you’ll notice circumstances that call for you to go above and beyond your normal monthly spending.  These major purchases may be to maintain your lifestyle or improve it.  They may be emergencies, or opportunities, or just for fun. Whether it’s buying your next rental property, a business acquisition or expansion, buying a new car, putting tires on the old one, remodeling your kitchen, paying for your daughter’s wedding, your son’s college education, major purchases are outside your monthly spending plan and require additional thought and planning.

The way you pay for these expenses has more significant impacts on your current and future cash flow than you realize.

How you purchase makes a world of difference in your control or loss of control.

So how will you pay for these future major purchases?

You can know the best way, speculate, guess, dream, and even commit, but the best way to predict your future decision-making is to look honestly at your past decisions to figure out what mindset you used to arrive at where you are today.
Where Spending Money Fits into Your Cash Flow System
Spending money is just one part of the Survival to Significance Cash Flow System.

How you spend money is a result of your mindset.  When you spend money the right way, you keep and control more money today, giving you more to save and invest in cash flowing assets.
What’s Your Purchase Personality?
Use this simple quiz to help you discover your purchase personality.

* Do you put money into savings each month?
If no, you are a Spender.
If yes, continue.
* Think back to your last large purchase, maybe it was an investment property, car, boat, remodel, wedding, vacation.  Did you have enough in savings to have the option to pay cash?
If no, you may be a Spender.
If yes, continue.
* Did you choose to pay cash?
If yes, you might be a Saver.
If no, continue.
* Did you keep your cash and finance the purchase?
If yes, you may be a Steward.

The Three Ways to Spend Money
Two of the most common perspectives, which the majority of people ascribe to, are rooted in scarcity.  The third, rare perspective is from a place of abundance.
]]>
Bruce Wehner & Rachel Marshall clean 36:10
Speaking Without Fear, with Joe Yazbeck – TMA 039 https://themoneyadvantage.com/speaking-without-fear-joe-yazbeck/ Mon, 06 Aug 2018 09:00:11 +0000 https://themoneyadvantage.com/?p=2759 If you’re in business, you should be speaking.  Don’t let fear of using your own voice and not knowing what to say cripple your impact and prevent you from building a life and business you love.  Instead, recognize the power of this essential skill and say yes to mastering speaking, so you can expand your relationships and grow your business. Here to encourage, enlighten, and empower you to improve your communication to create positive change is Joe Yazbeck, master speaker and coach.  In this rich interview, we’ll discuss: How do I get past the fear of speaking? I know I have the potential to be a much greater speaker than I am, but where do I start? How do I improve my speaking to grow my business? What do I need to include in a successful presentation? What are the most important things I can do right away to improve my impact as a speaker?   Where Speaking Fits into the Cash Flow System Developing your speaking and communications skills is part of your Mindset in Stage 1, as well as your Unique Ability Investing and Legacy Creation in Stage 3 of the Survival to Significance Cash Flow System. It’s one of the most powerful ways to invest in yourself and your personal and professional development. In growing your business, speaking is a fundamental skill you can’t ignore or outsource. As you develop your skills, you become a more successful, effective, and impactful person that is capable of building a self-sustaining business through relationships and teams. The things you want are not really what you want.  What you want is to be the person who creates, expresses, or experiences those things. – Steve D’Annunzio, Mission-Driven Advisor Who Is Joe Yazbeck? Joe is a public speaking and leadership trainer, best-selling author, president of Prestige Leadership Advisors, and Master Speaker and coach. As the Founder and President of Prestige Leadership Advisors, his mission is to facilitate leaders in becoming dynamic, powerful communicators, so they can significantly influence the world around them. Joe has worked with heads of state and leaders of major corporations, as well as high-ranking military officers, political candidates, and best-selling authors. Joe is a highly-sought-after leadership and communications coach. Government and business leaders around the globe seek his counsel and company’s services at critical times such as PR, launching a brand, strategic direction, media training, speaking to government committees, winning a political campaign, creating a successful exit strategy, leadership development, etc. To complement the services of Prestige Leadership Advisors, Joe created the No Fear Speaking System which offers communications services which include executive-level speaker training, negotiation skills, media presentations for radio and TV, sales presentations, courtroom/trial presentations, etc. Joe has also authored a companion book by the same title, No Fear Speaking: High Impact Presentation Skills and Public Speaking Secrets to Inspire and Influence Any Audience, an Amazon bestseller. Joe is passionate about helping you become a highly respected and widely recognized leader in your industry.  He has developed workshops, one-on-one coaching, online training, and customized corporate training programs to help leaders do just that. Conversation Highlights (Partial Transcript) Speaking Is Showing up as You Are [9:45] The messaging has to come from the person himself or herself and be embedded in who they are. It can't be something synthetic. In my book No Fear Speaking, the chapter on authentic versus synthetic speaking will tell you that great speaking isn't adding anything. It's who you are that needs to show up. People will respect you and be attracted to your message because you are showing up delivering it, along with all the qualities that make up who you are. I've seen too many false approaches to training speakers where they're invo... If you’re in business, you should be speaking.  Don’t let fear of using your own voice and not knowing what to say cripple your impact and prevent you from building a life and business you love.  Instead, recognize the power of this essential skill and...
Here to encourage, enlighten, and empower you to improve your communication to create positive change is Joe Yazbeck, master speaker and coach.  In this rich interview, we’ll discuss:

* How do I get past the fear of speaking?
* I know I have the potential to be a much greater speaker than I am, but where do I start?
* How do I improve my speaking to grow my business?
* What do I need to include in a successful presentation?
* What are the most important things I can do right away to improve my impact as a speaker?

 


Where Speaking Fits into the Cash Flow System
Developing your speaking and communications skills is part of your Mindset in Stage 1, as well as your Unique Ability Investing and Legacy Creation in Stage 3 of the Survival to Significance Cash Flow System.

It’s one of the most powerful ways to invest in yourself and your personal and professional development.

In growing your business, speaking is a fundamental skill you can’t ignore or outsource.

As you develop your skills, you become a more successful, effective, and impactful person that is capable of building a self-sustaining business through relationships and teams.
The things you want are not really what you want.  What you want is to be the person who creates, expresses, or experiences those things. – Steve D’Annunzio, Mission-Driven Advisor
Who Is Joe Yazbeck?
Joe is a public speaking and leadership trainer, best-selling author, president of Prestige Leadership Advisors, and Master Speaker and coach.

As the Founder and President of Prestige Leadership Advisors, his mission is to facilitate leaders in becoming dynamic, powerful communicators, so they can significantly influence the world around them. Joe has worked with heads of state and leaders of major corporations, as well as high-ranking military officers, political candidates, and best-selling authors.

Joe is a highly-sought-after leadership and communications coach. Government and business leaders around the globe seek his counsel and company’s services at critical times such as PR, launching a brand, strategic direction, media training, speaking to government committees, winning a political campaign, creating a successful exit strategy, leadership development, etc.

To complement the services of Prestige Leadership Advisors, Joe created the No Fear Speaking System which offers communications services which include executive-level speaker training, negotiation skills, media presentations for radio and TV, sales presentations, courtroom/trial presentations, etc.

Joe has also authored a companion book by the same title, No Fear Speaking: High Impact Presentation Skills and Public Speaking Secrets to Inspire and Influence Any Audience, an Amazon bestseller.

Joe is passionate about helping you become a highly respected and widely recognized leader in your industry.  He has developed workshops, one-on-one coaching, online training, and customized corporate training programs to help leaders do just that.
Conversation Highlights (Partial Transcript)
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Bruce Wehner & Rachel Marshall clean 59:52
Business Is Simple: You Only Need One Thing Before You Launch, with Josh Thomas – TMA 038 https://themoneyadvantage.com/business-is-simple-you-only-need-one-thing-before-you-launch-boat-josh-thomas/ Mon, 30 Jul 2018 09:00:04 +0000 https://themoneyadvantage.com/?p=2619 We brought Josh Thomas, of Profit Arc, onto the show to talk about sales, marketing, and growth.  This dynamic, authentic conversation covered that ground, and so much more.  In his down-to-earth message of simplicity and focus, Josh shares the power of one person to make a difference, how to adapt to change, and the #1 thing that your business needs to get results. Josh tells his fascinating story that winds from burnout and mediocre failure to learning how to run a successful business and helping others to do the same.   Who Is Josh Thomas? Josh Thomas is a problem solver. He has assisted businesses in dozens of industries to identify problems and fix them. Be it a sales, marketing or systems issue, Josh’s focus is on results and revenue. He has personally consulted with over 1,000 businesses in 30 different industries across all 6 continents. He has directly produced millions of dollars in sales and profit growth through his unique “results first” approach. Josh delivers tangible results-oriented solutions in sales, marketing, and systems components using sales fundamentals, direct-response marketing, and proven best practices for laser-targeted, rapid business growth. He lives in Austin, Texas and is an avid stand-up paddle-boarder. Conversation Highlights (Partial Transcript) The Power of a Handshake [18:27] It just takes one person, one thing, to change everything for you. Perseverance and Adaptation [20:00] Evolution is not about survival of the fittest, or the most intelligent, but it's about the animals that can most readily adapt to change. The Simple Thing to Focus on to Get Results [21:09] There's a lot of noise and shiny objects out there.  We want to make sure that we're focusing on the thing that's going to get us a result. Not on the thing that's going to make us look good, or that's going to stroke your ego, but the thing that is going to get a result. To have a successful business, you need a valuable product, a hungry crowd, and to be in a great position where the hungry crowd can see your valuable product. And that's it. If you're on Instagram, Facebook, YouTube, LinkedIn, and Google Plus, that's fine. But why are you there? Are you there because your customers are there? Are you there because you have a plan on how to generate business from there? Or are you there because somebody said you have to be there? Let's go back to your website. Do you have a website because you need one, or because you think you should have one? Launch with an Offer, Then Build the Rest on the Way [22:28] The concept of agile development is like building a ship. Most of the time you're going to build the entire thing in the shipyard, and then you're going to shove it off into the sea. Instead, agile development says you build the hull, stick all the other stuff you might need in there, and you shove off to sea.  You build the rest of the ship while you're sailing. Why?  Because once you get out to sea, you're going to find out that you might not have the best sail, or mast, or maybe you want to design this a little differently.  When I'm out here living it, I'm getting immediate feedback. I would recommend that you build a business the same way, don't worry about your website, your USP, finding your why, and all that stuff.  Instead, figure out if you can take an offer and go and get somebody to give you money for it. Agile Development in Action [26:48] I was introduced to the idea of generating leads on LinkedIn via a Facebook ad. The guy had a great pitch. Basically, it was a manual approach, where you’re reaching out to connections and writing a good message to pitch them for some service. I realized I could do this. I’ll offer that to other business owners. I've got some I've got some spare time, an assistant, and I can probably outsource the majority of this work. I first put together my offer, and then called five people that I really like and trus... We brought Josh Thomas, of Profit Arc, onto the show to talk about sales, marketing, and growth.  This dynamic, authentic conversation covered that ground, and so much more.  In his down-to-earth message of simplicity and focus, 
In his down-to-earth message of simplicity and focus, Josh shares the power of one person to make a difference, how to adapt to change, and the #1 thing that your business needs to get results.

Josh tells his fascinating story that winds from burnout and mediocre failure to learning how to run a successful business and helping others to do the same.

 


Who Is Josh Thomas?
Josh Thomas is a problem solver. He has assisted businesses in dozens of industries to identify problems and fix them.

Be it a sales, marketing or systems issue, Josh’s focus is on results and revenue.

He has personally consulted with over 1,000 businesses in 30 different industries across all 6 continents. He has directly produced millions of dollars in sales and profit growth through his unique “results first” approach.

Josh delivers tangible results-oriented solutions in sales, marketing, and systems components using sales fundamentals, direct-response marketing, and proven best practices for laser-targeted, rapid business growth.

He lives in Austin, Texas and is an avid stand-up paddle-boarder.
Conversation Highlights (Partial Transcript)
The Power of a Handshake
[18:27] It just takes one person, one thing, to change everything for you.
Perseverance and Adaptation
[20:00] Evolution is not about survival of the fittest, or the most intelligent, but it's about the animals that can most readily adapt to change.
The Simple Thing to Focus on to Get Results
[21:09] There's a lot of noise and shiny objects out there.  We want to make sure that we're focusing on the thing that's going to get us a result.

Not on the thing that's going to make us look good, or that's going to stroke your ego, but the thing that is going to get a result.

To have a successful business, you need a valuable product, a hungry crowd, and to be in a great position where the hungry crowd can see your valuable product.

And that's it.

If you're on Instagram, Facebook, YouTube, LinkedIn, and Google Plus, that's fine. But why are you there?

Are you there because your customers are there? Are you there because you have a plan on how to generate business from there? Or are you there because somebody said you have to be there?

Let's go back to your website. Do you have a website because you need one, or because you think you should have one?
Launch with an Offer, Then Build the Rest on the Way
[22:28] The concept of agile development is like building a ship.

Most of the time you're going to build the entire thing in the shipyard, and then you're going to shove it off into the sea.

Instead, agile development says you build the hull, stick all the other stuff you might need in there, and you shove off to sea.  You build the rest of the ship while you're sailing.

Why?  Because once you get out to sea, you're going to find out that you might not have the best sail, or mast, or maybe you want to design this a little differently.  When I'm out here living it, I'm getting immediate feedback.

I would recommend that you build a business the same way, don't worry about your website, your USP, finding your why, and all that stuff.  Instead, figure out if you can take an offer and go and get somebody to give you money for it.
Agile Development in Action
[26:48] I was introduced to the idea of generat...]]>
Bruce Wehner & Rachel Marshall clean 50:05
Why Debt Free Doesn’t Make You Financially Free – TMA 037 https://themoneyadvantage.com/why-debt-free-doesnt-make-you-financially-free/ Mon, 23 Jul 2018 09:00:00 +0000 https://themoneyadvantage.com/?p=2484 Becoming debt free is often listed as a notch on the belt of financial progress. It’s widely discussed, admired, longed for, celebrated, and even praised by so-called financial experts.  But, paying off debt may be risky or even altogether unnecessary.  In fact, you’re probably not in debt in the first place!  We want you to be debt free, but you first have to know what that means.  Many confuse being debt free with being liability free.  Before you decide whether to add becoming debt free to your checklist, let’s get the skinny on what debt is.  Then, you can take action that gives you the most certainty, control, and peace of mind.  To help you gain clarity on your debt position and know what to do about it, we’ll answer: What is debt? Am I in debt? Will a debt-free goal help or hurt me? More importantly, to reach my goals, gain confidence, peace of mind, time and money freedom, what should I do about debt? This conversation will help you develop a big picture perspective of a balanced personal economy. Rather than spiraling out of control, you’ll gain control, options, and increased financial capabilities.   Why Becoming Debt Free Seems Like Such a Big Deal Let’s face it; most people fear debt. They feel it’s an encumbrance or ensnarement that nullifies their goals.  If it was in a game of Taboo, it’s almost a dirty word that lives with other deplorable financial conditions, like losing money, bad credit, foreclosure, and bankruptcy. Why does debt strike at the chord of our financial aspirations so much so that ringing the debt-free bell seems like such a milestone? Often families start off saddled in student loan debt.  Because there’s not much cash, they add car loans, a mortgage, and credit card debt to achieve their lifestyle.  They work a job to pay it off, while also balancing buying a house and saving for their future.  But the more debt you have, the harder it seems to pay it off because you feel tighter each month.  The debt seems like a slippery slope that can easily have you feeling that forward progress is all but impossible.  To be debt free might seem like the best way to get back on track. Maybe looking at the debt payments each month is an arrow to the heart, reminding you of past mistakes.  To be debt free would mean to be free of the pain of guilt. Because a balanced financial life seems unachievably complex, looking at it one piece at a time might feel more manageable and doable.  Becoming debt free might be that one step you think you can really accomplish. However, putting all your emphasis on paying off debt can be detrimental when it causes you to lose control and delay your journey to financial freedom. Where Debt Fits into Your Cash Flow System Dealing with debt is just one step in the big picture of the Survival to Significance Cash Flow System. Debt is part of your cash flow in the foundational stage.  How you handle debt has the potential to increase or decrease your cash flow and financial control, accelerating or slowing your path to time and money freedom. The more cash flow you have today, the more quickly you can accelerate time and money freedom. How to Determine If You’re in Debt and What to Do About It To start off the conversation on a high note, you probably aren’t in debt in the first place. At the fundamental level, the stress and anxiety about debt are fueled by a simple misunderstanding of the difference between a debt and a liability. Spoiler alert: a liability is not the same thing as debt. For this conversation, we’ll discuss your financial statements so you can find out what it really means to be debt free. It’s much simpler than it sounds, I promise. #1: Understand Your Balance Sheet Take out a blank piece of paper and draw a line down the middle.   On the left side, write assets.  On the right side, write liabilities.  This is your balance sheet. Assets are what you own. Becoming debt free is often listed as a notch on the belt of financial progress. It’s widely discussed, admired, longed for, celebrated, and even praised by so-called financial experts.  But, paying off debt may be risky or even altogether unnecessary.... financial experts.  But, paying off debt may be risky or even altogether unnecessary.  In fact, you’re probably not in debt in the first place!  We want you to be debt free, but you first have to know what that means.  Many confuse being debt free with being liability free.  Before you decide whether to add becoming debt free to your checklist, let’s get the skinny on what debt is.  Then, you can take action that gives you the most certainty, control, and peace of mind.

To help you gain clarity on your debt position and know what to do about it, we’ll answer:

* What is debt?
* Am I in debt?
* Will a debt-free goal help or hurt me?
* More importantly, to reach my goals, gain confidence, peace of mind, time and money freedom, what should I do about debt?

This conversation will help you develop a big picture perspective of a balanced personal economy.

Rather than spiraling out of control, you’ll gain control, options, and increased financial capabilities.

 


Why Becoming Debt Free Seems Like Such a Big Deal
Let’s face it; most people fear debt. They feel it’s an encumbrance or ensnarement that nullifies their goals.  If it was in a game of Taboo, it’s almost a dirty word that lives with other deplorable financial conditions, like losing money, bad credit, foreclosure, and bankruptcy.

Why does debt strike at the chord of our financial aspirations so much so that ringing the debt-free bell seems like such a milestone?

Often families start off saddled in student loan debt.  Because there’s not much cash, they add car loans, a mortgage, and credit card debt to achieve their lifestyle.  They work a job to pay it off, while also balancing buying a house and saving for their future.  But the more debt you have, the harder it seems to pay it off because you feel tighter each month.  The debt seems like a slippery slope that can easily have you feeling that forward progress is all but impossible.  To be debt free might seem like the best way to get back on track.

Maybe looking at the debt payments each month is an arrow to the heart, reminding you of past mistakes.  To be debt free would mean to be free of the pain of guilt.

Because a balanced financial life seems unachievably complex, looking at it one piece at a time might feel more manageable and doable.  Becoming debt free might be that one step you think you can really accomplish.

However, putting all your emphasis on paying off debt can be detrimental when it causes you to lose control and delay your journey to financial freedom.
Where Debt Fits into Your Cash Flow System
Dealing with debt is just one step in the big picture of the Survival to Significance Cash Flow System.

Debt is part of your cash flow in the foundational stage.  How you handle debt has the potential to increase or decrease your cash flow and financial control, accelerating or slowing your path to time and money freedom.

The more cash flow you have today, the more quickly you can accelerate time and money freedom.
How to Determine If You’re in Debt and What to Do About It
To start off the conversation on a high note, you probably aren’t in debt in the first place.

At the fundamental level, the stress and anxiety about debt are fueled by a simple misunderstanding of the difference between a debt and a liability.
]]>
Bruce Wehner & Rachel Marshall clean 55:22
Spartan Invest: Turnkey Real Estate Done Right, with Maureen McCann – TMA 036 https://themoneyadvantage.com/spartan-invest-turnkey-real-estate-done-right-maureen-mccann/ Mon, 16 Jul 2018 09:00:31 +0000 https://themoneyadvantage.com/?p=2451 Spartan Invest offers the opportunity to benefit easily from real estate investing.  Investors secure the tax advantages of real estate ownership and earn cash flow, without industry knowledge, maintenance, or management headaches.  If you’re looking for a way to get started in real estate investing or build a portfolio, consider the income-generating asset of single-family rental real estate in the renaissance city of Birmingham, Alabama.  In this interview with Maureen McCann, VP of Spartan Invest, we’ll answer: What is turnkey real estate? How can I use turnkey real estate to build cash flow from assets? What do I look for in a turnkey real estate provider? Why might I want to invest with Spartan Invest? How can I gain confidence when investing in properties outside my local area? Why Birmingham, Alabama? When buying rental real estate, should I finance or pay cash?   Where Does Turnkey Real Estate Fit in the Cash Flow System? We are evangelists for cash flow because cash flow is your ticket to time and money freedom. Investing in cash-flowing assets is part of the third stage of the Cash Flow System. Once you have a stocked emergency/opportunity fund, you now have a pool of capital that’s ready to invest. To accelerate your cash flow, you need to identify cash-flowing assets and develop an acquisition strategy. By introducing you to opportunities that could help you accomplish your goals, we want to expand your cash-flow investing options. Real estate has long been an asset choice of the wealthy to create cash flow income. If you’re looking for a way to increase your cash flow, producing income in low-risk alternative investments outside the stock market, turnkey real estate with Spartan Invest may help you accomplish your goals. Who Is Maureen McCann? Maureen’s Role at Spartan Invest Maureen McCann is a partner and owner, and the VP of Sales and Marketing at Spartan Invest. She has over ten years of sales and marketing experience in the turnkey marketplace. Having served as an Investment Property coach for years, Maureen is skilled at helping clients build turnkey cash flow portfolios. Maureen has helped hundreds of investors build the type of rental portfolios necessary to reach their short-term & long-term monthly passive income goals. Investing in turnkey real estate for long-term wealth generation is something Maureen understands intimately. Whether clients want to replace their current income with passive income or are simply looking to supplement their retirement, Maureen can help design the right portfolio with the right end goal in mind. With an incredible work ethic and an unquenchable thirst for knowledge, Maureen helps provide peace of mind while investing in premium income-generating properties. She spends time coaching her clients on the wealth-building principles that will help her clients and their families protect their capital and mitigate the loss of their capital while investing in real estate. Maureen excels in providing trusted, reliable, knowledgeable consulting to assist you with building your real estate portfolio. Maureen’s Backstory Maureen was a blue-collar kid who grew up in New Jersey, paid her way through college while waiting tables, and earned her degree in Exercise Physiology because it was the one program that did not require Calculus. She was a W2 wage earner for 15 years in Pharmaceuticals and Medical Device sales, and then stumbled into real estate in 2008 when she lost 50% of her 401K overnight and navigated her way towards turnkey real estate and passive income using her will for wanting to know what the rich knew that she didn’t know but was determined to find out. Rich Dad Poor Dad set a new course for her life, and with the paradigm shift that occurred, she was well on her way to living a different life, with a different mindset with different outcomes leading her to live her life as a version of her highest ... Spartan Invest offers the opportunity to benefit easily from real estate investing.  Investors secure the tax advantages of real estate ownership and earn cash flow, without industry knowledge, maintenance, or management headaches. 
In this interview with Maureen McCann, VP of Spartan Invest, we’ll answer:

* What is turnkey real estate?
* How can I use turnkey real estate to build cash flow from assets?
* What do I look for in a turnkey real estate provider?
* Why might I want to invest with Spartan Invest?
* How can I gain confidence when investing in properties outside my local area?
* Why Birmingham, Alabama?
* When buying rental real estate, should I finance or pay cash?

 


Where Does Turnkey Real Estate Fit in the Cash Flow System?
We are evangelists for cash flow because cash flow is your ticket to time and money freedom.

Investing in cash-flowing assets is part of the third stage of the Cash Flow System.

Once you have a stocked emergency/opportunity fund, you now have a pool of capital that’s ready to invest. To accelerate your cash flow, you need to identify cash-flowing assets and develop an acquisition strategy.

By introducing you to opportunities that could help you accomplish your goals, we want to expand your cash-flow investing options.

Real estate has long been an asset choice of the wealthy to create cash flow income.

If you’re looking for a way to increase your cash flow, producing income in low-risk alternative investments outside the stock market, turnkey real estate with Spartan Invest may help you accomplish your goals.
Who Is Maureen McCann?
Maureen’s Role at Spartan Invest
Maureen McCann is a partner and owner, and the VP of Sales and Marketing at Spartan Invest.

She has over ten years of sales and marketing experience in the turnkey marketplace. Having served as an Investment Property coach for years, Maureen is skilled at helping clients build turnkey cash flow portfolios. Maureen has helped hundreds of investors build the type of rental portfolios necessary to reach their short-term & long-term monthly passive income goals. Investing in turnkey real estate for long-term wealth generation is something Maureen understands intimately.

Whether clients want to replace their current income with passive income or are simply looking to supplement their retirement, Maureen can help design the right portfolio with the right end goal in mind. With an incredible work ethic and an unquenchable thirst for knowledge, Maureen helps provide peace of mind while investing in premium income-generating properties.

She spends time coaching her clients on the wealth-building principles that will help her clients and their families protect their capital and mitigate the loss of their capital while investing in real estate. Maureen excels in providing trusted, reliable, knowledgeable consulting to assist you with building your real estate portfolio.
Maureen’s Backstory
Maureen was a blue-collar kid who grew up in New Jersey, paid her way through college while waiting tables, and earned her degree in Exercise Physiology because it was the one p...]]>
Bruce Wehner & Rachel Marshall clean 1:08:19
Who Are the Financial Experts? – TMA 035 https://themoneyadvantage.com/who-are-financial-experts/ Mon, 09 Jul 2018 09:00:18 +0000 https://themoneyadvantage.com/?p=2414 How do you know if the advice of financial experts applies to you?  In fact, who are the financial experts?  Does fame or popularity make someone an expert? What about having the biggest stage or the largest reach?  Is it a degree, certification, or credential that qualifies them?  Instead, the litmus test for a financial expert is that they give uncommon advice to people with uncommon income and uncommon goals.  To help you decide who to listen to in making educated financial choices to secure your future, we’ll answer: How do I decide who to take advice from? Who are the financial experts? How do I make sure I’m following the advice that leads me to my goals? How do education, personal responsibility, and the right guide work together? We’ll help you gain confidence in who to listen to and how to apply advice in your specific situation, without guessing, having to DIY, or blindly trusting someone with your money. You’ll go from overwhelmed with the financial noise, to confidently tuning in to what aligns and tuning out what doesn’t align with your goals. Instead of getting stuck trying to figure everything out, you’ll have the information to take action and make progress. You’ll gain confidence as you see a clear path from where you are to where you want to be, rather than wasting time wondering whether you’re going in the right direction. Where Financial Experts Fit into Your Cash Flow System Finding out who the financial experts are is just one step in the greater Survival to Significance Cash Flow System.  Once you’ve discovered who the financial experts are, you decide which of the four ways you want to implement their advice. Identifying the financial experts and implementing financial advice make up a micro-step in the bigger picture of gaining time and money freedom.  Here’s how: Deciding who to listen to is part of the foundation of your mindset and how you think about money. While your mindset may be the least tangible of all of the 9 steps, it’s critical to your success.  Don’t ignore or skip the mindset step.  Your thinking opens the door to all your financial possibilities and brings everything else into focus. The Critical Need for Education and the Battle to Find It Financial competency is the most ironic adult life skill.  We’re not taught in school how money works, how to make it, how to set goals, or how to arrive at our intended destination.  Yet we spend almost 100% of our waking hours in pursuit of making money, spending it, or thinking about it. If you aspire to transcend your current ranks and carve out a future of confidence, meaning, and security, it’s up to you to figure it out.  So as an adult that’s mastered the education system, and probably marriage, family, and a career, you still have to figure out what to do about money. Realizing that your financial independence is up to you is the first wake-up call. The second is when you become aware of the sea of “financial education” that doesn’t agree or stack up, and  you have the responsibility of figuring out who knows what’s going on that you should be listening to. The Noise If you’ve been on the financial education path for a while, you’ve noticed the slew of conflicting information. If opinions were highway road signs, one sign would read, “Retirement This Way.  20 Years Ahead.  Guaranteed.”  Another sign pointing the same direction would warn, “Danger Ahead.  Do Not Enter.” Confusion and chaos would abound.  Either everyone would be darting this way and that, trying to make sense out of it all and crashing into each other.  Or in despair, they might give up, hit the e-brake, and resign themselves to not figuring it out.  They might even start ignoring the signs and follow the crowd, hoping they aren’t all wrong. Likewise, if you tuned in to all the financial advice and opinions from self-proclaimed financial experts on tv and radio, financial advisors and institutions, How do you know if the advice of financial experts applies to you?  In fact, who are the financial experts?  Does fame or popularity make someone an expert? What about having the biggest stage or the largest reach?  Is it a degree, certification, 
To help you decide who to listen to in making educated financial choices to secure your future, we’ll answer:

* How do I decide who to take advice from?
* Who are the financial experts?
* How do I make sure I’m following the advice that leads me to my goals?
* How do education, personal responsibility, and the right guide work together?

We’ll help you gain confidence in who to listen to and how to apply advice in your specific situation, without guessing, having to DIY, or blindly trusting someone with your money.

You’ll go from overwhelmed with the financial noise, to confidently tuning in to what aligns and tuning out what doesn’t align with your goals.

Instead of getting stuck trying to figure everything out, you’ll have the information to take action and make progress.

You’ll gain confidence as you see a clear path from where you are to where you want to be, rather than wasting time wondering whether you’re going in the right direction.


Where Financial Experts Fit into Your Cash Flow System
Finding out who the financial experts are is just one step in the greater Survival to Significance Cash Flow System.  Once you’ve discovered who the financial experts are, you decide which of the four ways you want to implement their advice.

Identifying the financial experts and implementing financial advice make up a micro-step in the bigger picture of gaining time and money freedom.  Here’s how:

Deciding who to listen to is part of the foundation of your mindset and how you think about money.

While your mindset may be the least tangible of all of the 9 steps, it’s critical to your success.  Don’t ignore or skip the mindset step.  Your thinking opens the door to all your financial possibilities and brings everything else into focus.
The Critical Need for Education and the Battle to Find It
Financial competency is the most ironic adult life skill.  We’re not taught in school how money works, how to make it, how to set goals, or how to arrive at our intended destination.  Yet we spend almost 100% of our waking hours in pursuit of making money, spending it, or thinking about it.

If you aspire to transcend your current ranks and carve out a future of confidence, meaning, and security, it’s up to you to figure it out.  So as an adult that’s mastered the education system, and probably marriage, family, and a career, you still have to figure out what to do about money.

Realizing that your financial independence is up to you is the first wake-up call.

The second is when you become aware of the sea of “financial education” that doesn’t agree or stack up, and  you have the responsibility of figuring out who knows what’s going on that you should be listening to.
The Noise
If you’ve been on the financial education path for a while, you’ve noticed the slew of conflicting information.

If opinions were highway road signs, one sign would read, “Retirement This Way.  20 Years Ahead.  Guaranteed.”  Another sign pointing the same direction would warn, “Danger Ahead.  Do Not Enter.”

]]>
Bruce Wehner & Rachel Marshall clean 39:34
Lessons from a Commercial Multifamily Investor, with Paul Moore – TMA 034 https://themoneyadvantage.com/paul-moore-commercial-multifamily-investor/ Mon, 02 Jul 2018 09:00:07 +0000 https://themoneyadvantage.com/?p=2295 In this fascinating interview with Paul Moore, we discussed opportunities for investors to build generational wealth through commercial multifamily investing.  Unfortunately, there are high barriers to entry into this investment sector.  New investors to this space may lack the capital requirements, loan qualifications, and experience needed to gain a seat at the table.  Through real estate investment firm, Wellings Capital, Paul Moore is making this asset class available to investors who would otherwise lack access.  Wellings is a syndicator that allows investors to pool their funds to get the advantages of direct ownership of commercial multifamily real estate, along with its high returns, tax advantages, and low risk. You’ll gain powerful business insights as you hear Paul share his thought-provoking and honest story.  He confidently shares his monumental accomplishments and the significant failures that accompanied them along the way.  When you listen, be prepared to learn just as much from his successes as from his stories of failure. Paul Moore is masterful in business and marketing.  You’ll come away with a new appreciation for continuous learning and reinvention, solving problems for others, and staying congruent with your life mission. Who Is Paul Moore? After graduating with an engineering degree and then an MBA from Ohio State, Paul entered the management development track at Ford Motor Company in Detroit. After five years, he departed to start a staffing company with a partner. They sold it to a publicly traded firm five years later for $2.9 million. Along the way, Paul was a finalist for Ernst & Young’s Michigan Entrepreneur of the Year two years straight (1996 & 1997). Paul later entered the real estate sector, where he flipped over 50 homes and 25 high-end waterfront lots, appeared as the only REALTOR® on HGTV’s House Hunters for a waterfront week special, rehabbed and managed rental properties, built many new homes, developed a subdivision, and started two successful online real estate marketing firms. He also built several other companies and made quite a few medium and high-risk investments along the way. Paul’s Most Important Business Lessons High Risk Does Not Equal High Returns People often think that to get high returns, they have to take on high risk. Instead of high risk leading to high returns, Paul Moore says that high risk leads to the potential of high returns, and more so to the potential of higher loss.  Often, people think they’re investing, when really, they’re speculating or gambling. Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas. – Paul Samuelson, the First American to win the Nobel Prize in Economics According to Paul, investing is when your principal is safe, and you have a chance to make a return. In contrast, the definition of speculating is when your principal is not at all safe, and there’s a chance to make a return. His wisdom comes from several experiences speculating when he thought he was investing, and consequently, losing a lot of money. The Importance of Giving There is a universal law that you will get back in proportion to what you give. When Paul was $2.5 Million in debt in 2007, he decided to model George Mueller’s heroic story of giving.  Paul made the most counterintuitive decision to give his way out of debt.  He challenged his family to give weekly as if they were making $500,000 a year, a decision that was painful and challenging at the time. A few weeks later, in a providential conversation with a developer, Paul discovered a loophole in the law that prevented subdividing property.  He was able to use that law to subdivide a very valuable waterfront property.  In 13 months, he was miraculously and entirely out of debt. Knowing When to Quit Two of the great truths that Paul has learned through the How to Lose Money podcast are these two op... In this fascinating interview with Paul Moore, we discussed opportunities for investors to build generational wealth through commercial multifamily investing.  Unfortunately, there are high barriers to entry into this investment sector. 
Through real estate investment firm, Wellings Capital, Paul Moore is making this asset class available to investors who would otherwise lack access.  Wellings is a syndicator that allows investors to pool their funds to get the advantages of direct ownership of commercial multifamily real estate, along with its high returns, tax advantages, and low risk.

You’ll gain powerful business insights as you hear Paul share his thought-provoking and honest story.  He confidently shares his monumental accomplishments and the significant failures that accompanied them along the way.  When you listen, be prepared to learn just as much from his successes as from his stories of failure.

Paul Moore is masterful in business and marketing.  You’ll come away with a new appreciation for continuous learning and reinvention, solving problems for others, and staying congruent with your life mission.


Who Is Paul Moore?
After graduating with an engineering degree and then an MBA from Ohio State, Paul entered the management development track at Ford Motor Company in Detroit.

After five years, he departed to start a staffing company with a partner. They sold it to a publicly traded firm five years later for $2.9 million.

Along the way, Paul was a finalist for Ernst & Young’s Michigan Entrepreneur of the Year two years straight (1996 & 1997).

Paul later entered the real estate sector, where he flipped over 50 homes and 25 high-end waterfront lots, appeared as the only REALTOR® on HGTV’s House Hunters for a waterfront week special, rehabbed and managed rental properties, built many new homes, developed a subdivision, and started two successful online real estate marketing firms.

He also built several other companies and made quite a few medium and high-risk investments along the way.
Paul’s Most Important Business Lessons
High Risk Does Not Equal High Returns
People often think that to get high returns, they have to take on high risk.

Instead of high risk leading to high returns, Paul Moore says that high risk leads to the potential of high returns, and more so to the potential of higher loss.  Often, people think they’re investing, when really, they’re speculating or gambling.
Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas. – Paul Samuelson, the First American to win the Nobel Prize in Economics
According to Paul, investing is when your principal is safe, and you have a chance to make a return.

In contrast, the definition of speculating is when your principal is not at all safe, and there’s a chance to make a return.

His wisdom comes from several experiences speculating when he thought he was investing, and consequently, losing a lot of money.
The Importance of Giving
There is a universal law that you will get back in proportion to what you give.

When Paul was $2.5 Million in debt in 2007, he decided to model George Mueller’s heroic story of giving.]]>
Bruce Wehner & Rachel Marshall clean 50:31
Be the Bank: The Biggest Thing You Can Do to Increase Your Cash Flow – TMA 033 https://themoneyadvantage.com/biggest-thing-you-can-do-to-increase-your-cash-flow/ Mon, 25 Jun 2018 09:00:57 +0000 https://themoneyadvantage.com/?p=2265 The #1 most effective way to increase your cash flow today is to think like the bank.  Banking generates voluminous cash flow.  There are rules for how the bank operates that have established banking as the most powerful business model in the world.  You can follow these rules to increase your cash flow, starting from whatever income you have today.  This secret hidden in plain sight is the catalyst to increase your cash flow and take control of your financial destiny, without cutting back, working harder, or taking on more risk. Let’s build your bridge to time and money freedom by increasing your cash flow with the one most powerful step.  We’ll answer: Why focus on cash flow? What is cash flow? How do I increase my cash flow? We’ll give you the seven rules banks use that give them the upper hand. When you utilize these rules in your own economy, you’ll stop having so many dollars flow out of your hands, and you’ll start keeping and controlling more of your money. You’ll leverage the magic of compound interest, so you earn it, instead of paying it. Instead of making costly mistakes by following typical advice, you’ll think for yourself and take control. Rather than building the empires of banks, Wall Street, and financial institutions, you’ll begin building your own financial destiny.   Where Increasing Your Cash Flow Fits into the Cash Flow System It may seem obvious that increasing your cash flow is a critical component of your cash flow system.  I mean, that’s the part of your life that is all about cash flow, right?  But here’s how it fits in the bigger picture exactly: The Cash Flow System moves you from survival, with little to no cash flow, to significance, where you have abundant cash flow from assets. In the foundational phase, you start by keeping more of the money you make.  In the next phase, you protect your money.  Finally, you make more money and increase your cash flow. Thinking like a bank is part of all three stages and allows you to increase your cash flow. Most importantly, it’s part of your mindset in the foundational phase.   Your mindset is what allows you to reduce your money leaks and keep more of your money. In the second phase, thinking like a bank allows you to protect your money, earn uninterrupted compound interest, and save like the wealthy. Finally, employing banking principles allows you to utilize cash-flowing assets to build time and money freedom. What Is Cash Flow? Cash flow is when you have more money at the end of your month. Cash flow is the money that you’re not using up each month, that you can instead set aside and store up.  When you have cash flow, you have money left over in your monthly economy. Determine your current monthly cash flow with this simple equation: Cash Flow = Income – Expenses Having more cash flow gives you more options, and options give you freedom and control. Two Levels of Cash Flow There are two levels of cash flow.  The difference between the two is the source of your income. The first level we’ll call cash flow from income.  This is the most common income source.   When you have cash flow from income, your primary income source is a job. Of those wages, you spend less than you earn. The second level is cash flow from assets.  In this position, you have assets like rental real estate or self-sustaining businesses that do not require you to put in your time to generate a profit.  Your assets provide more income than you spend. This is the most desirable source of income and is the pinnacle of cash flow achievement. Why Focus on Cash Flow Now? Let's answer the question, why cash flow today?  You master time and money freedom when you’re in a position with income from your assets that exceeds your expenses. For example, a person with lifestyle expenses of $10,000 each month who has an income of $10,000 from business and real estate has reached time and money freedom. The #1 most effective way to increase your cash flow today is to think like the bank.  Banking generates voluminous cash flow.  There are rules for how the bank operates that have established banking as the most powerful business model in the world.
Let’s build your bridge to time and money freedom by increasing your cash flow with the one most powerful step.  We’ll answer:

* Why focus on cash flow?
* What is cash flow?
* How do I increase my cash flow?

We’ll give you the seven rules banks use that give them the upper hand.

When you utilize these rules in your own economy, you’ll stop having so many dollars flow out of your hands, and you’ll start keeping and controlling more of your money.

You’ll leverage the magic of compound interest, so you earn it, instead of paying it.

Instead of making costly mistakes by following typical advice, you’ll think for yourself and take control.

Rather than building the empires of banks, Wall Street, and financial institutions, you’ll begin building your own financial destiny.

 


Where Increasing Your Cash Flow Fits into the Cash Flow System
It may seem obvious that increasing your cash flow is a critical component of your cash flow system.  I mean, that’s the part of your life that is all about cash flow, right?  But here’s how it fits in the bigger picture exactly:

The Cash Flow System moves you from survival, with little to no cash flow, to significance, where you have abundant cash flow from assets.

In the foundational phase, you start by keeping more of the money you make.  In the next phase, you protect your money.  Finally, you make more money and increase your cash flow.

Thinking like a bank is part of all three stages and allows you to increase your cash flow.

Most importantly, it’s part of your mindset in the foundational phase.   Your mindset is what allows you to reduce your money leaks and keep more of your money.

In the second phase, thinking like a bank allows you to protect your money, earn uninterrupted compound interest, and save like the wealthy.

Finally, employing banking principles allows you to utilize cash-flowing assets to build time and money freedom.
What Is Cash Flow?
Cash flow is when you have more money at the end of your month.

Cash flow is the money that you’re not using up each month, that you can instead set aside and store up.  When you have cash flow, you have money left over in your monthly economy.

Determine your current monthly cash flow with this simple equation:
Cash Flow = Income – Expenses
Having more cash flow gives you more options, and options give you freedom and control.
Two Levels of Cash Flow
There are two levels of cash flow.  The difference between the two is the source of your income.

The first level we’ll call cash flow from income.  This is the most common income source.   When you have cash flow from income, your primary income source is a job.]]>
Bruce Wehner & Rachel Marshall clean 56:39
Ted Benna: Reflections from the “Father of the 401(k)” – TMA 032 https://themoneyadvantage.com/ted-benna-father-401k/ Mon, 18 Jun 2018 09:00:15 +0000 https://themoneyadvantage.com/?p=2237 If you listen to the “financial experts” on tv or the radio, you will hear the typical blanket advice that you should put money into a 401(k).  But the question is, does that advice apply to everybody?  To get as much of an insider’s perspective as we could find, we interviewed Ted Benna, "inventor" of the 401(k).  During this insightful conversation, we discussed the purpose of the 401(k), its history, shortcomings, and the need for reform.  This interview was forthright about why there’s a coming retirement crisis and what you can do about it if you want to take control of your financial destiny. In this episode, we’ll help you answer: What does the 401(k) help me accomplish? Is the 401(k) right for me? If you remember in How to Find Your Best Investments, we discussed that your investing strategy will be unique to you.  You maximize your gains when you take an active role in investing in what you know and control. So, where does the 401(k) fit for you?   Individual Goals Create Individual Strategies Here at The Money Advantage, our objectives are to help you keep and control more of your money.  As an entrepreneur, you want control, access to your money, liquidity, cash flow, and tax advantages as possible.  A 401(k) doesn’t support those goals. However, to promote your education, it’s valuable to round out your perspective by considering the full discussion.  When you increase your knowledge, you gain the ability to make decisions and build confidence that you’re doing what’s best. Whether or not a 401(k) is a fit for you, it’s in your best interest to understand them.  401(k)s may be a part of providing solutions. The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function. – F. Scott Fitzgerald In this previous conversation about abundance, we discussed why being open-minded and considering contrasting information is critical to learning: Unless you’re willing to expand your map, nothing new exists for you.  When we come into a conversation with people who see differently, it’s important to recognize that if we both had the same map, we’d think the same way. When we each defend our own interpretation of the facts, it leads to conflict.  The only way you can learn something new is to be willing to step off of your map and onto someone else’s.  It’s not about who’s right, but about learning what else is possible. Today, we’re jumping onto the map of someone with a different perspective so that we can expand our own map.  We invite you to do the same. Different Perspectives While you’ll notice a great deal of common ground in our philosophy and perspective, we don’t agree on everything.  We do agree that there are problems, but we do not completely agree about how to solve them. One specific distinction is that we do not view putting money in a 401(k) to be savings. We agree that it’s crucial to have a systematic way of setting money aside for the future before spending.  The 401(k) has provided a method for hundreds of thousands of people to invest over $10 Trillion. However, a 401(k) fails to meet the criteria of being a savings tool.  Savings is safe from the risk of market loss, liquid and growing.  A 401(k) is typically invested in stocks and mutual funds, exposing the balance to the risk of market volatility and loss of account value. Additionally, it has significant limitations on accessibility, making it unsuitable for storing your emergency/opportunity fund. Where Does the 401(k) Fit in the Cash Flow System? To gain perspective, let’s zoom out to look at an optimized personal economy. In the first phase of the Cash Flow System, you build a foundation to keep more of the money you make.  Then in the second phase, you protect your money.  Finally, in the third phase, you increase your money and make more. 401(k)s may potentially be a part of your investing strategy in th... If you listen to the “financial experts” on tv or the radio, you will hear the typical blanket advice that you should put money into a 401(k).  But the question is, does that advice apply to everybody?  To get as much of an insider’s perspective as we ... 
During this insightful conversation, we discussed the purpose of the 401(k), its history, shortcomings, and the need for reform.  This interview was forthright about why there’s a coming retirement crisis and what you can do about it if you want to take control of your financial destiny.

In this episode, we’ll help you answer:

* What does the 401(k) help me accomplish?
* Is the 401(k) right for me?

If you remember in How to Find Your Best Investments, we discussed that your investing strategy will be unique to you.  You maximize your gains when you take an active role in investing in what you know and control.

So, where does the 401(k) fit for you?

 


Individual Goals Create Individual Strategies
Here at The Money Advantage, our objectives are to help you keep and control more of your money.  As an entrepreneur, you want control, access to your money, liquidity, cash flow, and tax advantages as possible.  A 401(k) doesn’t support those goals.

However, to promote your education, it’s valuable to round out your perspective by considering the full discussion.  When you increase your knowledge, you gain the ability to make decisions and build confidence that you’re doing what’s best.

Whether or not a 401(k) is a fit for you, it’s in your best interest to understand them.  401(k)s may be a part of providing solutions.
The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function. – F. Scott Fitzgerald
In this previous conversation about abundance, we discussed why being open-minded and considering contrasting information is critical to learning:
Unless you’re willing to expand your map, nothing new exists for you.  When we come into a conversation with people who see differently, it’s important to recognize that if we both had the same map, we’d think the same way. When we each defend our own interpretation of the facts, it leads to conflict.  The only way you can learn something new is to be willing to step off of your map and onto someone else’s.  It’s not about who’s right, but about learning what else is possible.
Today, we’re jumping onto the map of someone with a different perspective so that we can expand our own map.  We invite you to do the same.
Different Perspectives
While you’ll notice a great deal of common ground in our philosophy and perspective, we don’t agree on everything.  We do agree that there are problems, but we do not completely agree about how to solve them.

One specific distinction is that we do not view putting money in a 401(k) to be savings.

We agree that it’s crucial to have a systematic way of setting money aside for the future before spending.  The 401(k) has provided a method for hundreds of thousands of people to invest over $10 Trillion.

However, a 401(k) fails to meet the criteria of being a savings tool.  Savings is safe from the risk of market loss, liquid and growing.  A 401(k) is typically invested in stocks and mutual funds, exposing the balance to the risk of market volatility and loss of <...]]>
Bruce Wehner & Rachel Marshall clean 50:10
How to Shop for Insurance Part 3: Life, Health, and Disability Insurance – TMA 031 https://themoneyadvantage.com/how-to-shop-for-insurance-3-life-health-disability-insurance/ Mon, 11 Jun 2018 09:00:28 +0000 https://themoneyadvantage.com/?p=2199 Life, health, and disability insurance protect you, your body, your wellness, and your livelihood.  This range of coverage includes some of the most essential protections. Too often, people ask the wrong questions.  This leads them to draw the wrong conclusions about life, health, and disability insurance.   As a result, many remain drastically underinsured or forgo the protection altogether.  Without maximum life, health, and disability insurance, you leave the things that matter most, exposed to the highest risk.  Asking how to save money on your life, health, and disability insurance is the wrong place to start. First, you want to best protect what's most important to you.  You get the maximum security and protection by securing the best possible, longest lasting, highest quality coverage.  After you find the best coverage, then you can use smart shopping strategies to lower your costs. Here’s straight talk about how to get the best insurance and make every dollar you spend in premium count.   The Whole Series on Insurance In the last five articles, we’ve outlined an insurance philosophy and buying guide to put you in control. Why You Want Insurance Part 1 examined what insurance does. It transfers risk. Why You Want Insurance Part 2 discussed why it matters. It protects your greatest asset. Why You Want Insurance Part 3 covered the cost and answered why you should pay for insurance. It costs more to self-insure. How to Shop for Insurance Part 1 outlined the seven tips to save the most money when shopping for insurance in general. How to Shop for Insurance Part 2 gave guidance on buying home, auto, and business insurance. In This Article Today, we’re capping off the series by focusing on life, disability, and health insurance. We’ll show you how to secure the best life, health, and disability insurance coverage and be efficient with your premium costs.  We’ll answer: How do I best protect what matters most? How do I get the highest quality life, health, and disability insurance? Then, how do I save the most and spend the least on my life, health, and disability insurance? We’ll first walk you through understanding your coverages so you can feel protected and secure.  Then we’ll give you the exact tips to get the most and best value life, health, and disability insurance for the least premium. You’ll gain confidence and peace of mind without giving up any more of your dollars than necessary. More importantly, no matter what happens in your life, your future self will be secure, protected, and grateful.  You’ll be reassured that you made the best decisions in your power. Where Insurance Fits into Your Whole Personal Economy Let’s zoom out for a moment to remember where and why insurance fits into your Cash Flow System. Your foundation starts with keeping more of the money you make.  Second, you protect what you’ve built.  Finally, you increase your income to create time and money freedom and expand your legacy. Insurance fits in the protection stage.  With it, your livelihood is no longer at risk, but secure, regardless of the life circumstances you face. Your protection is like a roof on your financial house.  When the shingles are sufficient and cover the whole house, it keeps storms outside your house, preventing them from getting inside and destroying your belongings.  Similarly, when you have adequate insurance protection, your income and assets you’ve built are safe from financial storms that may occur in your life. The Universe of You Imagine drawing concentric circles around you to rank the importance of the things in your life.  At the center, you might find your autonomy, contribution, sense of purpose, meaning and fulfillment.  This also includes the physical and mental capabilities that give you the power to decide and act. In the next, you might find your loved ones and their sense of security, safety, love, and belonging. Life, health, and disability insurance protect you, your body, your wellness, and your livelihood.  This range of coverage includes some of the most essential protections. Too often, people ask the wrong questions. 
Asking how to save money on your life, health, and disability insurance is the wrong place to start. First, you want to best protect what's most important to you.  You get the maximum security and protection by securing the best possible, longest lasting, highest quality coverage.  After you find the best coverage, then you can use smart shopping strategies to lower your costs.

Here’s straight talk about how to get the best insurance and make every dollar you spend in premium count.

 


The Whole Series on Insurance
In the last five articles, we’ve outlined an insurance philosophy and buying guide to put you in control.

* Why You Want Insurance Part 1 examined what insurance does. It transfers risk.
* Why You Want Insurance Part 2 discussed why it matters. It protects your greatest asset.
* Why You Want Insurance Part 3 covered the cost and answered why you should pay for insurance. It costs more to self-insure.
* How to Shop for Insurance Part 1 outlined the seven tips to save the most money when shopping for insurance in general.
* How to Shop for Insurance Part 2 gave guidance on buying home, auto, and business insurance.

In This Article
Today, we’re capping off the series by focusing on life, disability, and health insurance.

We’ll show you how to secure the best life, health, and disability insurance coverage and be efficient with your premium costs.  We’ll answer:

* How do I best protect what matters most?
* How do I get the highest quality life, health, and disability insurance?
* Then, how do I save the most and spend the least on my life, health, and disability insurance?

We’ll first walk you through understanding your coverages so you can feel protected and secure.  Then we’ll give you the exact tips to get the most and best value life, health, and disability insurance for the least premium.

You’ll gain confidence and peace of mind without giving up any more of your dollars than necessary.

More importantly, no matter what happens in your life, your future self will be secure, protected, and grateful.  You’ll be reassured that you made the best decisions in your power.
Where Insurance Fits into Your Whole Personal Economy
Let’s zoom out for a moment to remember where and why insurance fits into your Cash Flow System.

Your foundation starts with keeping more of the money you make.  Second, you protect what you’ve built.  Finally, you increase your income to create time and money freedom and expand your legacy.

Insurance fits in the protection stage.  With it, your livelihood is no longer at risk,]]>
Bruce Wehner & Rachel Marshall clean 1:07:05
How to Shop For Insurance Part 2: Home and Auto Insurance – TMA 030 https://themoneyadvantage.com/how-to-shop-for-insurance-part-2-home-and-auto-insurance/ Mon, 04 Jun 2018 09:00:38 +0000 https://themoneyadvantage.com/?p=2158 Home and auto insurance are two pillars of insurance protection that are almost universally understood to be necessary. However, when it comes to choosing and paying for coverage, you have nearly infinite options.  The range of coverage details, exemptions, coverage amounts, and limitations add complexity.  This can make shopping for insurance seem like a maze without an exit. Without the knowledge of what to look for, your home and auto insurance can become a costly money leak.  But overwhelm is no reason to pay more than you need to or settle for coverage that’s less than best. Your goal is to pay the least for the best possible coverage.  To help you do that, we want to show you the tricks of the trade.  These insights will help you become more efficient with these coverages, keeping more of your dollars in your pocket. With these strategies, you’ll get the best deals on your home and auto insurance and win at insurance shopping.   In the last article, we gave you the seven tips to save on insurance in general.  Today, we’ll apply that specifically to your home and auto insurance to answer: How do I make the best decisions on my home and auto insurance? How do I shrink my home and auto insurance cost while maximizing my protection? What do I include in my home and auto insurance coverage to get the best for the lowest price? We’ll first walk you through understanding your coverages.  Then we’ll give you the exact tips to get the best value home and auto insurance for the least premium.  You'll feel protected and secure, without mourning the cost. Once we’ve done that, we’ll walk you through the added layer of business insurances.  We'll show you how to maximize your coverage and minimize your costs as you protect one of your most valuable assets. You’ll gain confidence and peace of mind without giving up any more of your dollars in monthly expenses than necessary. Where Insurance Fits into Your Whole Personal Economy Let’s zoom out for a moment to remember where and why insurance fits into your Cash Flow System. Your foundation starts with keeping more of the money you make.  Second, you protect what you’ve built.  Finally, you increase your income to create time and money freedom and expand your legacy. Insurance fits in the protection stage.  With it, your livelihood is no longer at risk, but secure, regardless of the life circumstances you face. Your protection is like a roof on your financial house.  When the shingles are sufficient and cover the whole house, it keeps storms outside your house, preventing them from getting inside and destroying your belongings.  Similarly, when you have adequate insurance protection, your income and assets you’ve built are safe from financial storms that may occur in your life. Understanding Your Auto Insurance The Primary Purpose of Auto Insurance: Liability Protection The primary purpose of auto insurance is to transfer your risk of having to pay out of pocket if you cause injury or damage to others. If you are at fault in an accident, your liability portion of your auto insurance will cover the cost of damages to the other person, up to your coverage limits. Coverage Limits for Liability Protection To understand your coverage limits, look at the number code on your liability protection.  It would be something like this: $100,000/$300,000/$100,000. The three numbers correspond to the other vehicle only.  In order, they are: Per Person: The limit paid per injured person for bodily injury for people in the other vehicle Per Accident: The limit paid for total injured people in the other car Property Damage: The limit for all property you’ve damaged, except your own (such as vehicles, curbs, buildings, etc.) Coverage ranges from state-required minimums to legally operate a car, usually around $25,000/$50,000/$25,000, up to a maximum of about $500,000/$500,000/$500,000. Here’s how it applies. Home and auto insurance are two pillars of insurance protection that are almost universally understood to be necessary. - However, when it comes to choosing and paying for coverage, you have nearly infinite options.  The range of coverage details,
However, when it comes to choosing and paying for coverage, you have nearly infinite options.  The range of coverage details, exemptions, coverage amounts, and limitations add complexity.  This can make shopping for insurance seem like a maze without an exit.

Without the knowledge of what to look for, your home and auto insurance can become a costly money leak.  But overwhelm is no reason to pay more than you need to or settle for coverage that’s less than best.

Your goal is to pay the least for the best possible coverage.  To help you do that, we want to show you the tricks of the trade.  These insights will help you become more efficient with these coverages, keeping more of your dollars in your pocket.

With these strategies, you’ll get the best deals on your home and auto insurance and win at insurance shopping.



 

In the last article, we gave you the seven tips to save on insurance in general.  Today, we’ll apply that specifically to your home and auto insurance to answer:

* How do I make the best decisions on my home and auto insurance?
* How do I shrink my home and auto insurance cost while maximizing my protection?
* What do I include in my home and auto insurance coverage to get the best for the lowest price?

We’ll first walk you through understanding your coverages.  Then we’ll give you the exact tips to get the best value home and auto insurance for the least premium.  You'll feel protected and secure, without mourning the cost.

Once we’ve done that, we’ll walk you through the added layer of business insurances.  We'll show you how to maximize your coverage and minimize your costs as you protect one of your most valuable assets.

You’ll gain confidence and peace of mind without giving up any more of your dollars in monthly expenses than necessary.
Where Insurance Fits into Your Whole Personal Economy
Let’s zoom out for a moment to remember where and why insurance fits into your Cash Flow System.

Your foundation starts with keeping more of the money you make.  Second, you protect what you’ve built.  Finally, you increase your income to create time and money freedom and expand your legacy.

Insurance fits in the protection stage.  With it, your livelihood is no longer at risk, but secure, regardless of the life circumstances you face.

Your protection is like a roof on your financial house.  When the shingles are sufficient and cover the whole house, it keeps storms outside your house, preventing them from getting inside and destroying your belongings.  Similarly, when you have adequate insurance protection, your income and assets you’ve built are safe from financial storms that may occur in your life.
Understanding Your Auto Insurance
The Primary Purpose of Auto Insurance: Liability Protection
The primary purpose of auto insurance is to transfer your risk of having to pay out of pocket if you cause injury or damage to others.

If you are at fault in an accident, your liability portion of your auto insurance will cover the cost of damages to the other person, up to your coverage limits.
Coverage Limits for Liability Protection
]]>
Bruce Wehner & Rachel Marshall clean 30:24
How to Shop for Insurance Part 1: 7 Tips to Save on Insurance – TMA 029 https://themoneyadvantage.com/how-to-shop-for-insurance-part-1-7-tips-to-save-on-insurance/ Mon, 28 May 2018 09:00:51 +0000 https://themoneyadvantage.com/?p=2132 When you shop for insurance, it’s best to start with a game plan.  Then you know what to look for and how to save on insurance without sacrificing value.  It’s just like shopping for groceries, a marketing strategist, or an investment property. First, you need to know what you want.  Next, you want to know how to get the best deal. Finally, you need to know where to find it. If you’ve been following along in this series on protection, you know why you want insurance. You’re here because you want an insurance strategy that transfers as much risk as possible to protect your human life value. You want as much of the best, most enduring, highest quality coverage you can get.     Now it’s time to find the best deals. Over the next three articles, we’re going to walk you through how to save on insurance. We’ll answer: How do I maximize the value I get for the least premium? What protections should I have? What are some pitfalls to avoid, so my protection doesn’t become a money leak? Today, we’ll show you seven tips to get the most and best value coverage for the least premium so that you can feel protected and secure.  You’ll gain confidence and peace of mind without giving up any more of your dollars in monthly expenses than absolutely necessary. Previously If you're not sure why you would want insurance in the first place, here’s the first three articles in the series to help you do exactly that: Why You Want Insurance Part 1 examined what insurance does. It transfers risk. Why You Want Insurance Part 2 discussed why it matters. It protects your greatest asset. Why You Want Insurance Part 3 covered the cost and answered why you should pay for insurance. It costs more to self-insure. Where Insurance Fits into Your Whole Personal Economy Let’s zoom out for a moment to remember where and why insurance fits into your Cash Flow System. Your foundation starts with keeping more of the money you make.  Second, you protect what you’ve built.  Finally, you increase your income to build time and money freedom and expand your legacy. Insurance fits in the protection stage.  With it, your livelihood is no longer at risk, but secure, regardless of the life circumstances you face. Your protection is like a roof on your financial house.  When the shingles are sufficient and cover the whole house, it keeps storms outside your house, preventing them from getting inside and destroying your belongings.  Similarly, when you have adequate insurance protection, your income and assets you’ve built are safe from financial storms that may occur in your life. Banish Buyer’s Remorse If you’ve recognized a disparity between the coverage you have and the coverage you want, it’s time to go shopping.  Whether you are purchasing insurance for the first time, adding new lines of coverage, or shoring up an existing strategy, the decision can be quite overwhelming. At the store, when you go shopping without a plan, a well-meaning salesperson asks you what you’re looking for and how they can help.  Instead of sounding nice, they seem like they just want your money. You either dodge them and continue browsing or find yourself talked into leaving with more than you wished, spending twice as much as you’d wanted. Maybe you’ve been confronted by the irresistible well-placed items near the checkout line.  Before you know it, you’re lamenting buying those ten extra items that you never had in mind when you stepped into the store. That’s called buyer’s remorse. We don’t want that to be you when it comes to insurance. Confident Insurance Shopping Is the Goal When you have the insider’s knowledge on finding the best deals, you have a new confidence that puts you in control.  It’s like being an exclusive member and getting access to the VIP sales before everyone else finds out. So, here’s a guide to confident insurance shopping.  You’ll get tips to save on insurance. When you shop for insurance, it’s best to start with a game plan.  Then you know what to look for and how to save on insurance without sacrificing value.  It’s just like shopping for groceries, a marketing strategist, or an investment property. - 
It’s just like shopping for groceries, a marketing strategist, or an investment property.

First, you need to know what you want.  Next, you want to know how to get the best deal. Finally, you need to know where to find it.

If you’ve been following along in this series on protection, you know why you want insurance.

You’re here because you want an insurance strategy that transfers as much risk as possible to protect your human life value. You want as much of the best, most enduring, highest quality coverage you can get.

 



 

Now it’s time to find the best deals.

Over the next three articles, we’re going to walk you through how to save on insurance.

We’ll answer:

* How do I maximize the value I get for the least premium?
* What protections should I have?
* What are some pitfalls to avoid, so my protection doesn’t become a money leak?

Today, we’ll show you seven tips to get the most and best value coverage for the least premium so that you can feel protected and secure.  You’ll gain confidence and peace of mind without giving up any more of your dollars in monthly expenses than absolutely necessary.
Previously
If you're not sure why you would want insurance in the first place, here’s the first three articles in the series to help you do exactly that:

* Why You Want Insurance Part 1 examined what insurance does. It transfers risk.
* Why You Want Insurance Part 2 discussed why it matters. It protects your greatest asset.
* Why You Want Insurance Part 3 covered the cost and answered why you should pay for insurance. It costs more to self-insure.

Where Insurance Fits into Your Whole Personal Economy
Let’s zoom out for a moment to remember where and why insurance fits into your Cash Flow System.

Your foundation starts with keeping more of the money you make.  Second, you protect what you’ve built.  Finally, you increase your income to build time and money freedom and expand your legacy.

Insurance fits in the protection stage.  With it, your livelihood is no longer at risk, but secure, regardless of the life circumstances you face.

Your protection is like a roof on your financial house.  When the shingles are sufficient and cover the whole house, it keeps storms outside your house, preventing them from getting inside and destroying your belongings.  Similarly, when you have adequate insurance protection, your income and assets you’ve built are safe from financial storms that may occur in your life.
Banish Buyer’s Remorse
If you’ve recognized a disparity between the coverage you have and the coverage you want, it’s time to go shopping.  Whether you are purchasing insurance for the first time, adding new lines of coverage, or shoring up an existing strategy, the decision can be quite overwhelming.

At the store, when you go shopping without a plan, a well-meaning salesperson asks you what you’re looking for and how they can help.  Instead of sounding nice, they seem like they just want your money.]]>
Bruce Wehner & Rachel Marshall clean 38:37
The Go-Giver: The Unexpected Secret of Success, with Bob Burg – TMA 028 https://themoneyadvantage.com/the-go-giver-secret-of-success-bob-burg/ Mon, 21 May 2018 09:00:35 +0000 https://themoneyadvantage.com/?p=2110 The Go-Giver is an engaging parable about the unexpected system of getting predictable, proven results in building a prosperous business.  This story reveals the five laws of stratospheric success, giving you the recipe to make more money in your entrepreneurial endeavors by adding value and increasing your impact. If you have been reading The Money Advantage blog for awhile, you may already know that The Go-Giver book played a central role in How The Money Advantage Began.     Why It Matters In business, you may feel stuck in your current level of achievement.  You may be excelling but want to expand and scale your business outside your current capabilities. Or, you may find yourself in the struggle for survival, wanting a steady stream of incoming clients in the future to remain profitable. Perhaps you’re working to meet a quota in sales to qualify for a trip or the next rank in status, or to reach your own goal and internal metric of success. Many business owners reach a plateau of success, where, try as they might, they need a new skillset and mindset to reach the next level of achievement. While you want the fruit of success, the hustle, drive, ambition, and force will only take you so far before you burn out and call it quits. Wherever you find yourself, The Go-Giver shows you the mindset to move from struggling to thriving, or from successful to ultra-successful, without doubling your efforts to get there. Bob Burg and John David Mann lay out actionable laws of success in this delightfully-written story that will move you from hustling to attracting business instead. We brought Bob Burg in for an interview to answer: What is the Go-Giver all about? How do I live the Go-Giver principles to build my business? How can the struggling become successful, or the successful become ultra-successful? Meet Bob Burg, Co-Author and "How-To Guy" of The Go-Giver Bob Burg is a sought-after speaker at company leadership and sales conferences sharing the platform with everyone from today’s business leaders and broadcast personalities to even a former U.S. President. Bob is the author of several books on sales, marketing, and influence, with total book sales of well over a million copies. His book, The Go-Giver, coauthored with John David Mann, itself has sold over 700,000 copies, and it has been translated into 21 languages. His and John’s newest parable in the Go-Giver Series is The Go-Giver Influencer. Bob is an advocate, supporter, and defender of the Free Enterprise system, believing that the amount of money one makes is directly proportional to how many people they serve. He is also an unapologetic animal fanatic and is a past member of the Board of Directors of Furry Friends Adoption, Clinic & Ranch in his town of Jupiter, Florida. The Main Idea Astounding success comes through giving, serving others, and providing value, not through sheer ambition, techniques, clout, and leverage.  Ambitious Joe goes on a mission to close a significant contract at his office. He seeks the leverage of the most influential person he’s heard of and finds a network of extraordinary mentors instead. Over the course of one week, he learns the five counterintuitive laws of stratospheric success, experiences a personal transformation, and becomes genuinely successful.   The Five Laws of Stratospheric Success Law #1: The Law of Value Your true worth is determined by how much more you give in value than you take in payment. In a free-market economy where no one is forced to buy from you, the only way you can prosper is by bringing immense value to others. People who succeed are those who can move from an “I” focus to an “other” focus, focusing on what other’s want.  For them, it has to be more valuable than the price they pay.  You focus on others by looking for ways to bring them value and make their lives better, easier, or more fulfilling. The Go-Giver is an engaging parable about the unexpected system of getting predictable, proven results in building a prosperous business.  This story reveals the five laws of stratospheric success, giving you the recipe to make more money in your en... 
This story reveals the five laws of stratospheric success, giving you the recipe to make more money in your entrepreneurial endeavors by adding value and increasing your impact.

If you have been reading The Money Advantage blog for awhile, you may already know that The Go-Giver book played a central role in How The Money Advantage Began.

 

 


Why It Matters
In business, you may feel stuck in your current level of achievement.  You may be excelling but want to expand and scale your business outside your current capabilities.

Or, you may find yourself in the struggle for survival, wanting a steady stream of incoming clients in the future to remain profitable.

Perhaps you’re working to meet a quota in sales to qualify for a trip or the next rank in status, or to reach your own goal and internal metric of success.

Many business owners reach a plateau of success, where, try as they might, they need a new skillset and mindset to reach the next level of achievement.

While you want the fruit of success, the hustle, drive, ambition, and force will only take you so far before you burn out and call it quits.

Wherever you find yourself, The Go-Giver shows you the mindset to move from struggling to thriving, or from successful to ultra-successful, without doubling your efforts to get there.

Bob Burg and John David Mann lay out actionable laws of success in this delightfully-written story that will move you from hustling to attracting business instead.

We brought Bob Burg in for an interview to answer:

* What is the Go-Giver all about?
* How do I live the Go-Giver principles to build my business?
* How can the struggling become successful, or the successful become ultra-successful?

Meet Bob Burg, Co-Author and "How-To Guy" of The Go-Giver
Bob Burg is a sought-after speaker at company leadership and sales conferences sharing the platform with everyone from today’s business leaders and broadcast personalities to even a former U.S. President.

Bob is the author of several books on sales, marketing, and influence, with total book sales of well over a million copies. His book, The Go-Giver, coauthored with John David Mann, itself has sold over 700,000 copies, and it has been translated into 21 languages.

His and John’s newest parable in the Go-Giver Series is The Go-Giver Influencer.

Bob is an advocate, supporter, and defender of the Free Enterprise system, believing that the amount of money one makes is directly proportional to how many people they serve. He is also an unapologetic animal fanatic and is a past member of the Board of Directors of Furry Friends Adoption, Clinic & Ranch in his town of Jupiter, Florida.
The Main Idea
Astounding success comes through giving, serving others, and providing value, not through sheer ambition, techniques, clout, and leverage.

Ambitious Joe goes on a mission to close a significant contract at his office.

He seeks the leverage of the most influential person he’s heard of and finds a network of extraordinary mentors instead.

Over the course of one week, he learns the five counterintuitive laws of stratospheric success, experiences a personal transformation, and becomes genuinely successful.

 
The Five Laws of Stratospheric Success
]]>
Bruce Wehner & Rachel Marshall clean 43:50
Why You Want Insurance Part 3: It Costs More to Self-Insure – TMA 027 https://themoneyadvantage.com/why-you-want-insurance-part-3-it-costs-more-to-self-insure/ Mon, 14 May 2018 09:00:04 +0000 https://themoneyadvantage.com/?p=2082 To navigate your insurance decisions, you must weigh the costs and opportunity costs of each option.  While some choose to self-insure as a solution to reduce costs, there are additional costs hidden beneath the surface that you need to be aware of.  Insurance is fairly polarizing.  Chances are, you either love it or you hate it.  And for most, it all boils down to cost. If you’re in the maximum-insurance-for-all-time camp, you want as much protection as you can get.  You see no expiration on your desire to be insured, and you have no problem paying for it. However, if you lean towards just-the-minimums-ma’am, you begrudgingly pay for just what’s legally required.  You would rather do anything else with your money.   Everyone Wants Insurance Let’s address one misconception so we can start off on the same page.  The truth is that everyone wants insurance and as much of it as they can get. Why? If it were free, how much would you get? You and just about everyone else would want it all. I think the lines would be even longer than the ones camped outside a new Chick-fil-A grand opening that give the first 100 a year of free chicken sandwich meals. Now, we all know that we can’t get something for nothing.  No insurance company would agree to that arrangement, because it’s unsustainable. They’d always lose money, go out of business, and that would put you right back in the same position of having no insurance. Because there’s a cost to transfer risk, you now have to decide if it’s worth it to you. Perception of Cost vs. Reality On the surface, it appears there’s a positive correlation between the amount coverage and the cost.  When the amount of insurance goes up, so does the price tag. Logically then, the way to achieve the lowest cost would be to have the least insurance. Given that perspective, most people run the cost-benefit analysis throughout their life to calibrate how much coverage to have at any given point in time.  They carefully measure needs and weigh the benefits and costs like two kids on an old-fashioned see-saw, looking for equilibrium.  Do the benefits outweigh the costs or is it the other way around? But that’s not the whole story.  Most don’t see the big picture because of the opportunity costs that lurk just out of view. Let’s dive into the heart of the matter so that we can gain some clarity in our decision-making. The Panoramic View As with all parts of your financial life, the whole system is more important than the individual components.  To make sure each piece fits the larger purpose of your life, let’s come back to the big picture of an optimized personal economy that’s in your control. You’re earning, spending, giving, saving, and investing from a perspective of abundance.  You know that you have everything you need and that you create wealth by serving others. Because you protect what you have built, you have future guarantees that your assets and cash flow will be there for you. You find and fix the places where money is leaking out of your control so that you keep more of the money you make. And, you’re accelerating wealth by earning cash flow from your assets. Previously in This Series This series outlines the 11 reasons why you want to protect your money.  If you haven’t seen the first seven reasons, check out the prior posts: In Why You Want Insurance Part 1: Insurance Transfers Risk, we discussed what insurance does.  The job of insurance to contractually intercept the financial risk of adverse life events. In Why You Want Insurance Part 2: It Protects Your Human Life Value, we pulled back the why of insurance and how it’s meaningful to you.  Insurance protects your greatest asset: you – the source of your assets, income, and cash flow. The Questions We’re Answering Today Today, we’re tackling the costs and opportunity costs to determine how expensive insuring or not insuring is.  We’ll dig into the last four reasons why you w... To navigate your insurance decisions, you must weigh the costs and opportunity costs of each option.  While some choose to self-insure as a solution to reduce costs, there are additional costs hidden beneath the surface that you need to be aware of. opportunity costs of each option.  While some choose to self-insure as a solution to reduce costs, there are additional costs hidden beneath the surface that you need to be aware of.

Insurance is fairly polarizing.  Chances are, you either love it or you hate it.  And for most, it all boils down to cost.

If you’re in the maximum-insurance-for-all-time camp, you want as much protection as you can get.  You see no expiration on your desire to be insured, and you have no problem paying for it.

However, if you lean towards just-the-minimums-ma’am, you begrudgingly pay for just what’s legally required.  You would rather do anything else with your money.

 


Everyone Wants Insurance
Let’s address one misconception so we can start off on the same page.  The truth is that everyone wants insurance and as much of it as they can get.

Why?

If it were free, how much would you get?

You and just about everyone else would want it all. I think the lines would be even longer than the ones camped outside a new Chick-fil-A grand opening that give the first 100 a year of free chicken sandwich meals.

Now, we all know that we can’t get something for nothing.  No insurance company would agree to that arrangement, because it’s unsustainable. They’d always lose money, go out of business, and that would put you right back in the same position of having no insurance.

Because there’s a cost to transfer risk, you now have to decide if it’s worth it to you.
Perception of Cost vs. Reality
On the surface, it appears there’s a positive correlation between the amount coverage and the cost.  When the amount of insurance goes up, so does the price tag. Logically then, the way to achieve the lowest cost would be to have the least insurance.

Given that perspective, most people run the cost-benefit analysis throughout their life to calibrate how much coverage to have at any given point in time.  They carefully measure needs and weigh the benefits and costs like two kids on an old-fashioned see-saw, looking for equilibrium.  Do the benefits outweigh the costs or is it the other way around?

But that’s not the whole story.  Most don’t see the big picture because of the opportunity costs that lurk just out of view.

Let’s dive into the heart of the matter so that we can gain some clarity in our decision-making.
The Panoramic View
As with all parts of your financial life, the whole system is more important than the individual components.  To make sure each piece fits the larger purpose of your life, let’s come back to the big picture of an optimized personal economy that’s in your control.

You’re earning, spending, giving, saving, and investing from a perspective of abundance.  You know that you have everything you need and that you create wealth by serving others.

Because you protect what you have built, you have future guarantees that your assets and cash flow will be there for you.

You find and fix the places where money is leaking out of your control so that you keep more of the money you make.

And, you’re accelerating wealth by earning cash flow from your assets.
Previously in This Series
This series outlines the 11 reasons why you want to protect your money.]]>
Bruce Wehner & Rachel Marshall clean 38:01
Content Marketing That Attracts and Converts Happy Clients, with Maggie Patterson – TMA 026 https://themoneyadvantage.com/content-marketing-that-converts-maggie-patterson/ Mon, 07 May 2018 09:00:48 +0000 https://themoneyadvantage.com/?p=2065 Content marketing is a powerful tool to reach your future customers before they choose to do business with you.  If you’ve been in business for 20 years or 15 minutes, you’ve realized that one of the primary levers of success is having customers. With people to see, you can find out what works best, make money, fine-tune, and scale. But without them, you’re dying a slow and painful death that eventually takes you out of business. So how do you attract and convert happy clients quickly, simply, and sustainably?  For many businesses, it starts with building a relationship with potential clients before they buy from you through content marketing.   Why Content Marketing? We want to help you build a life and business you love.  One way we do that is to give you tools and resources to help you scale into a self-sustaining business.  Sometimes, those resources are outside our area of expertise. Wherever you are now on the spectrum from a solo operation where all business depends on you, to having a team working from their unique abilities to support you, you have the opportunity to grow. You may be in real estate, the medical profession, a law practice, construction or consulting.  Regardless, you can provide education-based content to attract, nurture, and convert strangers into satisfied, happy clients. Through content, you can meet your potential clients where they are.  When you answer their questions, you establish yourself as the solution for when they’re ready to make a purchase decision. It gives them the ability to get to know you, find out if they like you, and decide whether to work with you. Clearing the Content Marketing Hurdles If you’re providing educational content at any level to potential clients, you may be familiar with funnels, traffic, conversion, and ads.  You may be using or desire to provide education through your website, emails, your LinkedIn profile, articles, blogs, video, podcasting, books, or landing pages. All of this communication requires words that you write or speak, and that your potential customers receive. Your goal is to use those words create a congruent story.  In doing so, you want to convert someone who doesn’t know you at all into a paying client. Once you decide to create content, it’s easy to become overwhelmed. Messaging takes time to create.  It needs to be congruent.  It must answer the questions that are top of mind to your potential clients.  And it requires technology to support the moving parts. To help you decide how to approach content marketing in a way that’s right for you and design a strategy to get everything working together, we brought in Maggie Patterson, of SCOOP Industries, to answer your questions like: Should I use content marketing in my business? How can I strategically fine-tune my content marketing to get more results? When should I outsource my content marketing and hire a professional? Meet Maggie Patterson, Strategic Communications Extraordinaire Maggie Patterson, the VP of Content Marketing with SCOOP Industries, is a strategic communications expert and B2B content marketer who works with small to mid-sized businesses to help them meet their business goals. Her specialties are customer case studies and blogging, and she’s a Master Level Content Marketer.  She has deep experience in B2B software, and her team has experience in a variety of industries including online marketing, financial services, real estate and tourism. Over the course of her career, she’s worked with startups to the world's biggest brands, and her work has been featured on Entrepreneur.com, Virgin.com, Fast Company, The Huffington Post and numerous other publications. Maggie’s specialties include customer success stories, blogging, website copywriting, marketing content, email marketing and content strategy. As a business owner, you may want to leave your content marketing to professionals or get some guidance so ... Content marketing is a powerful tool to reach your future customers before they choose to do business with you.  If you’ve been in business for 20 years or 15 minutes, you’ve realized that one of the primary levers of success is having customers. 
If you’ve been in business for 20 years or 15 minutes, you’ve realized that one of the primary levers of success is having customers.

With people to see, you can find out what works best, make money, fine-tune, and scale.

But without them, you’re dying a slow and painful death that eventually takes you out of business.

So how do you attract and convert happy clients quickly, simply, and sustainably?  For many businesses, it starts with building a relationship with potential clients before they buy from you through content marketing.

 


Why Content Marketing?
We want to help you build a life and business you love.  One way we do that is to give you tools and resources to help you scale into a self-sustaining business.  Sometimes, those resources are outside our area of expertise.

Wherever you are now on the spectrum from a solo operation where all business depends on you, to having a team working from their unique abilities to support you, you have the opportunity to grow.

You may be in real estate, the medical profession, a law practice, construction or consulting.  Regardless, you can provide education-based content to attract, nurture, and convert strangers into satisfied, happy clients.

Through content, you can meet your potential clients where they are.  When you answer their questions, you establish yourself as the solution for when they’re ready to make a purchase decision. It gives them the ability to get to know you, find out if they like you, and decide whether to work with you.
Clearing the Content Marketing Hurdles
If you’re providing educational content at any level to potential clients, you may be familiar with funnels, traffic, conversion, and ads.  You may be using or desire to provide education through your website, emails, your LinkedIn profile, articles, blogs, video, podcasting, books, or landing pages.

All of this communication requires words that you write or speak, and that your potential customers receive.

Your goal is to use those words create a congruent story.  In doing so, you want to convert someone who doesn’t know you at all into a paying client.

Once you decide to create content, it’s easy to become overwhelmed.

Messaging takes time to create.  It needs to be congruent.  It must answer the questions that are top of mind to your potential clients.  And it requires technology to support the moving parts.

To help you decide how to approach content marketing in a way that’s right for you and design a strategy to get everything working together, we brought in Maggie Patterson, of SCOOP Industries, to answer your questions like:

* Should I use content marketing in my business?
* How can I strategically fine-tune my content marketing to get more results?
* When should I outsource my content marketing and hire a professional?

Meet Maggie Patterson, Strategic Communications Extraordinaire
Maggie Patterson, the VP of Content Marketing with SCOOP Industries, is a strategic communications expert and B2B content marketer who works with small to mid-sized businesses to help them meet their business goals.

Her specialties are customer case studies and blogging, and she’s a Master Level Content Marketer.  She has deep experience in B2B software, and her team has experience in a variety of industries including online marketing, financial services, real estate and tourism.

Over the course of her career, she’s worked with startups to the world's biggest brands, and her work has been featured on Entrepreneur....]]>
Bruce Wehner & Rachel Marshall clean 44:54
Why You Want Insurance Part 2: It Protects Your Human Life Value – TMA 025 https://themoneyadvantage.com/why-you-want-insurance-part-2-human-life-value/ Mon, 30 Apr 2018 09:00:54 +0000 https://themoneyadvantage.com/?p=2011 Insurance is about more than protecting your stuff. It’s about protecting your human life value.    Often, you need insurance ranks pretty close on the motivation list with you need to change the oil in your car. Here’s the filtering mechanism your brain goes through when you hear it:  Not that pressing.  Things are going fine without it.  Why be inconvenienced to handle this non-urgent matter?  Not that relevant.  Out of sight, out of mind.  Dismiss. Right? But what if I told you that the reason to change your oil in your car was not about your car at all?  Changing your oil protects you, your peace of mind, and your ability to create value.     Without changing your oil, you run the risk of thousands of dollars of irreparable damage that can be done when a car runs out of oil.  Your nightmare of needing to replace a car fast is now upon you.  While buying a new car should be fun and exciting, you now have to spend hours searching for the right vehicle just to bring your life back into equilibrium and normalcy.  Basic transportation in your everyday life that was easy before now becomes a complicated algorithm of managing other people’s availabilities to find out how they can help you get from point A to point B. This seemingly menial task of preventative maintenance is now all-important.  It’s not really about the car, but about protecting your peace of mind, and saving yourself the worry and frustration. Similarly, insurance is about more than just protecting your stuff.  It’s about protecting you. An Optimized Personal Economy Let’s take a moment to zoom out and look at the big picture of your financial life. In a well-functioning personal economy, you start from a mindset of abundance. Next, you protect what you earn through insurance and legal planning to solidify the foundation. Then you optimize your efficiency and minimize the leaks and losses that have money flowing out of your control. As you increase your net investible income in your opportunity fund, you accelerate your wealth through investing for cash flow. The foundation of protection allows you to build greater wealth, more sustainably, and quicker. Last Time In Why You Want Insurance Part 1 – Insurance Transfers Risk, we covered the first three of 11 reasons why you want insurance and discussed what insurance does. Insurance contractually transfers risk to the insurance company, so that you don’t have to bear the financial burden of adverse life events.  When you transfer risk, you gain the peace of mind to know that, no matter what happens, you have a safety net that will catch you. We discussed the agreement that you enter with the insurance company.  In exchange for a premium, they will compensate, or indemnify, your loss, making you whole.  The premium is based on actuarial data that calculates the probability of your risk. The least risky time, when you’re comfortable, and there are no risks on the immediate horizon, is the best time to get insurance.  The insurance company is more likely to insure you, at a lower cost. When you don’t feel like you need insurance is the best time to secure it because when you do need it, you’ll wish you had as much as you could get. Today Next, we’re talking about why it matters.  As we explore the next four reasons why you want to protect your money, we’ll answer: What is my human life value? How is protecting myself as a producer and creator the #1 priority of all insurance? Why is protection so important in my personal economy? Reasons You Want Insurance #4) You Are Worth Protecting Have you ever asked yourself, what is the most important thing that I have? Money?  It could vanish tomorrow.  Health? Time?  Relationships?  Happiness? Purpose?  You’re getting closer. Your most valuable asset is you. You are the source of everything you create. You are the producer of all of your other assets: your home, bank accounts, Insurance is about more than protecting your stuff. It’s about protecting your human life value.    - Often, you need insurance ranks pretty close on the motivation list with you need to change the oil in your car. - 
 

Often, you need insurance ranks pretty close on the motivation list with you need to change the oil in your car.

Here’s the filtering mechanism your brain goes through when you hear it:  Not that pressing.  Things are going fine without it.  Why be inconvenienced to handle this non-urgent matter?  Not that relevant.  Out of sight, out of mind.  Dismiss.

Right?

But what if I told you that the reason to change your oil in your car was not about your car at all?  Changing your oil protects you, your peace of mind, and your ability to create value.

 



 

Without changing your oil, you run the risk of thousands of dollars of irreparable damage that can be done when a car runs out of oil.  Your nightmare of needing to replace a car fast is now upon you.  While buying a new car should be fun and exciting, you now have to spend hours searching for the right vehicle just to bring your life back into equilibrium and normalcy.  Basic transportation in your everyday life that was easy before now becomes a complicated algorithm of managing other people’s availabilities to find out how they can help you get from point A to point B.

This seemingly menial task of preventative maintenance is now all-important.  It’s not really about the car, but about protecting your peace of mind, and saving yourself the worry and frustration.

Similarly, insurance is about more than just protecting your stuff.  It’s about protecting you.
An Optimized Personal Economy
Let’s take a moment to zoom out and look at the big picture of your financial life.

In a well-functioning personal economy, you start from a mindset of
abundance.

Next, you protect what you earn through insurance and legal planning to solidify the foundation.

Then you optimize your efficiency and minimize the leaks and losses that have money flowing out of your control.

As you increase your net investible income in your opportunity fund, you accelerate your wealth through investing for cash flow.

The foundation of protection allows you to build greater wealth, more sustainably, and quicker.
Last Time
In Why You Want Insurance Part 1 – Insurance Transfers Risk, we covered the first three of 11 reasons why you want insurance and discussed what insurance does.

Insurance contractually transfers risk to the insurance company, so that you don’t have to bear the financial burden of adverse life events.  When you transfer risk, you gain the peace of mind to know that, no matter what happens, you have a safety net that will catch you.

We discussed the agreement that you enter with the insurance company.  In exchange for a premium, they will compensate, or indemnify, your loss, making you whole.  The premium is based on actuarial data that calculates the probability of your risk.

The least risky time, when you’re comfortable, and there are no risks on the immediate horizon, is the best time to get insurance.  The insurance company is more likely to insure you, at a lower cost.

When you don’t feel like you need insurance is the best time to secure it because when you do need it,]]> Bruce Wehner & Rachel Marshall clean 31:41 Estate Planning That Works, with Rick Randall – TMA 024 https://themoneyadvantage.com/estate-planning-that-works-rick-randall/ Mon, 23 Apr 2018 09:00:53 +0000 https://themoneyadvantage.com/?p=1836 While estate planning that works is not the norm, it does not have to be that way.  The goal of estate planning is to dictate how you will transfer the baton of your life’s wealth and wisdom to generations after you.  With it, you ensure your legacy will live on, beyond you, rather than dissolving at your death. Estate planning that works gives you the ability to control, preserve and protect the wealth you’ve created when you’re no longer able to.     Love, Money, and Control says it like this: With proper planning, you can control your financial and personal affairs while you are well and competent and leave instructions for how your affairs should be managed – in essence, still maintaining control – if you become physically or mentally disabled. – Love, Money, and Control With estate planning, you set plans in motion today to take care of the things that are most important to you, like your children, your health, and your money. It is the most efficient way to transfer wealth with minimal loss and ensure your assets aren’t tied up in probate and chiseled away by taxes. The Overwhelming Majority of People Don’t Get What They Wanted Overall, estate planning is a critical part of planning for the end of your life.  It ensures what you want to happen will happen. There are countless compelling reasons to do estate planning. Yet, with all the reasons to plan, only about 30% of Americans have an estate plan in place. That's because it’s one of those things that’s easier not to do. Firstly, it’s uncomfortable and distressing to think about the end of your life. Secondly, we all know “that family” that fell apart because of an inheritance.  Wealth transfer is often fraught with turmoil and conflict, and we don’t want that to happen to us.  We’d rather ignore our dysfunction than confront it head-on.  Often the family dynamics invite a tension and disagreement about how the money will change hands, who will receive what, and how decisions will be made. If you don't put your own estate plan in place, your state will give you one by default, and it won't be what you want. Of those who do plan, many of those estate plans have very little chance of working. Your Most Important Estate Planning Questions Answered We brought Rick Randall, Founder of Randall Gentry & Pike, and Chairman and CEO of the National Network of Estate Planning Attorneys, onto the show to tell you why most estate plans don’t work, what to do instead, and to answer: Why should I do estate planning? Who is estate planning for? How do I make sure my estate plan will work? What will make my estate plan of the greatest value to me and generations after me? What is estate planning that works? An Innovative Estate Planning Leader Rick Randall is an innovative leader in the Wealth Reception Planning™ movement. He develops and teaches concepts, tools, and systems designed to help client families and professional advisors create, appreciate and enjoy true wealth (both financial and non-financial), and to assure true wealth is efficiently transferred and effectively received. Rick is the developer of The LifeSpan Planning Process™, The Three Step Strategy Planning Process™, The Three Step Strategy Practice Evolver Model™, and The Wealth Reception Planning Process™. His firm is widely known for helping clients create "plans that work" through personalized counseling, a formal updating program, and proactive settlement training. A Founding Member of the National Network of Estate Planning Attorneys, Rick served as its first Education Director, later as its Executive Director, and now serves as its Chairman and CEO. Rick actively practices law in Indianapolis, Indiana. His area of technical expertise is retirement and estate planning integration.  Rick has attained the Certified Financial Planner® (CFP), a Chartered Life Underwriter (CLU) and Chartered Financial Consultant (ChFC) designations. While estate planning that works is not the norm, it does not have to be that way.  The goal of estate planning is to dictate how you will transfer the baton of your life’s wealth and wisdom to generations after you.  With it, 
The goal of estate planning is to dictate how you will transfer the baton of your life’s wealth and wisdom to generations after you.  With it, you ensure your legacy will live on, beyond you, rather than dissolving at your death.

Estate planning that works gives you the ability to control, preserve and protect the wealth you’ve created when you’re no longer able to.

 



 

Love, Money, and Control says it like this:
With proper planning, you can control your financial and personal affairs while you are well and competent and leave instructions for how your affairs should be managed – in essence, still maintaining control – if you become physically or mentally disabled. – Love, Money, and Control
With estate planning, you set plans in motion today to take care of the things that are most important to you, like your children, your health, and your money.

It is the most efficient way to transfer wealth with minimal loss and ensure your assets aren’t tied up in probate and chiseled away by taxes.
The Overwhelming Majority of People Don’t Get What They Wanted
Overall, estate planning is a critical part of planning for the end of your life.  It ensures what you want to happen will happen.

There are countless compelling reasons to do estate planning.

Yet, with all the reasons to plan, only about 30% of Americans have an estate plan in place.

That's because it’s one of those things that’s easier not to do.

Firstly, it’s uncomfortable and distressing to think about the end of your life.

Secondly, we all know “that family” that fell apart because of an inheritance.  Wealth transfer is often fraught with turmoil and conflict, and we don’t want that to happen to us.  We’d rather ignore our dysfunction than confront it head-on.  Often the family dynamics invite a tension and disagreement about how the money will change hands, who will receive what, and how decisions will be made.

If you don't put your own estate plan in place, your state will give you one by default, and it won't be what you want.

Of those who do plan, many of those estate plans have very little chance of working.
Your Most Important Estate Planning Questions Answered
We brought Rick Randall, Founder of Randall Gentry & Pike, and Chairman and CEO of the National Network of Estate Planning Attorneys, onto the show to tell you why most estate plans don’t work, what to do instead, and to answer:

* Why should I do estate planning?
* Who is estate planning for?
* How do I make sure my estate plan will work?
* What will make my estate plan of the greatest value to me and generations after me?
* What is estate planning that works?

An Innovative Estate Planning Leader
Rick Randall is an innovative leader in the Wealth Reception Planning movement. He develops and teaches concepts, tools, and systems designed to help client families and professional advisors create, appreciate and enjoy true wealth (both financial and non-financial), and to assure true wealth is efficiently transferred and effectively received.

Rick is the developer of The LifeSpan Planning Process, The Three Step Strategy Planning Process, The Three Step Strategy Practice Evolver Model, and The Wealth Reception Planning Process. His firm is widely known for helping clients create "plans that work" through personalized counseling, a formal updating program, and proactive settlement training.

]]>
Bruce Wehner & Rachel Marshall clean 1:01:08
Why You Want Insurance Part 1: Insurance Transfers Risk – TMA 023 https://themoneyadvantage.com/why-you-want-insurance-part-1-transfer-risk/ Mon, 16 Apr 2018 09:00:45 +0000 https://themoneyadvantage.com/?p=1934 Throughout civilization, people have created tools to transfer risk, protecting themselves from negative circumstances.  This is the core function of insurance: to transfer risk.  It’s what makes insurance not only something you want but something to love.  However, many people have a misguided and negative view of insurance, being inadequately insured or uninsured altogether.  As a result, they live with more worry, fear, and doubt because of the possibility of loss.  Consequently, they limit their potential. Let’s open up the dialogue and approach the topic from an abundance perspective, to learn why the wealthy value protection, and why you should too. Spoiler alert: it’s because the benefits of protection extend far beyond the coverage itself.     In this series, we’ll show you the 11 reasons why you want to protect your money, and answer: What does insurance do? Why does it matter? Why protect my money when I could just make more instead? Is the cost worth it? With limited resources, how do I prioritize paying for protection? What protections are important and why? Today, we’re exploring the topic of risk, our relationship to risk, and the ideal timeframe to transfer risk. Why Most People Hate Insurance Health insurance, auto insurance, disability insurance, life insurance, homeowner’s insurance, professional liability insurance, umbrella insurance, worker’s compensation, business overhead expense insurance, business owner’s insurance, long-term care insurance, gap insurance, key man insurance, critical illness. Feel like you need a shower yet? If you’re like most people, the thought of insurance brings up feelings of dread.  The desire to escape all the horrible things that could happen, along with their consequences has us succumbing to spending hundreds of dollars that we don’t want to spend. Insurance seems like a labyrinth of confusion, where you pay exorbitant premiums, get nothing in return, and the insurance company always wins. Many weigh the risks and decide the event is unlikely enough that they forgo the insurance altogether. Protection through insurance and legal planning is often seen as a necessary evil.  You want it, but it’s expensive and time-consuming, and there are so many other things you’d rather be doing with that money. Why We Love Insurance Let’s address the elephant in the room for a moment, shall we?  You might be thinking, of course, you love insurance because you sell it! Here at The Money Advantage, we educate people about how to keep and control more money, increase cash flow, and protect their wealth. Insurance is a vital part of that.  Yes, we sell insurance, specifically life and disability insurance, and receive compensation for the sale of those products. The reason we love insurance is that we use it and see the value in our own personal economy, as well as its role in maximizing the personal economy of the clients we work with. We were believers and consumers before we were educators and advisors.  We don’t love it and teach about it because we sell it.  Instead, we sell it because we own it, love it, and want to share it. In this article, we want to share with you how insurance protection matches our values and mission. Armed with this empowering perspective about protection, you’ll enjoy making decisions about how to protect your money, instead of feeling bullied into fear-based decision making by scare tactics. Reasons You Want Insurance Let’s dig into the reasons why you want to have insurance. #1) Protection Allows You to Transfer Risk What Types of Risk? There are infinite types of risk in the world, as we live our daily lives.  It could be as simple as tripping on the sidewalk, or as large as a fire.  There’s not only the risk of a disruptive event but the long-term emotional and financial impact of the loss as well. There’s the risk of death, disability, income loss, injury, illness, Throughout civilization, people have created tools to transfer risk, protecting themselves from negative circumstances.  This is the core function of insurance: to transfer risk.  It’s what makes insurance not only something you want but something to l... 
However, many people have a misguided and negative view of insurance, being inadequately insured or uninsured altogether.  As a result, they live with more worry, fear, and doubt because of the possibility of loss.  Consequently, they limit their potential.

Let’s open up the dialogue and approach the topic from an abundance perspective, to learn why the wealthy value protection, and why you should too.

Spoiler alert: it’s because the benefits of protection extend far beyond the coverage itself.

 



 

In this series, we’ll show you the 11 reasons why you want to protect your money, and answer:

* What does insurance do?
* Why does it matter?
* Why protect my money when I could just make more instead?
* Is the cost worth it?
* With limited resources, how do I prioritize paying for protection?
* What protections are important and why?

Today, we’re exploring the topic of risk, our relationship to risk, and the ideal timeframe to transfer risk.
Why Most People Hate Insurance
Health insurance, auto insurance, disability insurance, life insurance, homeowner’s insurance, professional liability insurance, umbrella insurance, worker’s compensation, business overhead expense insurance, business owner’s insurance, long-term care insurance, gap insurance, key man insurance, critical illness.

Feel like you need a shower yet?

If you’re like most people, the thought of insurance brings up feelings of dread.  The desire to escape all the horrible things that could happen, along with their consequences has us succumbing to spending hundreds of dollars that we don’t want to spend.

Insurance seems like a labyrinth of confusion, where you pay exorbitant premiums, get nothing in return, and the insurance company always wins.

Many weigh the risks and decide the event is unlikely enough that they forgo the insurance altogether.

Protection through insurance and legal planning is often seen as a necessary evil.  You want it, but it’s expensive and time-consuming, and there are so many other things you’d rather be doing with that money.
Why We Love Insurance
Let’s address the elephant in the room for a moment, shall we?  You might be thinking, of course, you love insurance because you sell it!

Here at The Money Advantage, we educate people about how to keep and control more money, increase cash flow, and protect their wealth.

Insurance is a vital part of that.  Yes, we sell insurance, specifically life and disability insurance, and receive compensation for the sale of those products.

The reason we love insurance is that we use it and see the value in our own personal economy, as well as its role in maximizing the personal economy of the clients we work with.

We were believers and consumers before we were educators and advisors.  We don’t love it and teach about it because we sell it.  Instead, we sell it because we own it, love it, and want to share it.

In this article, we want to share with you how insurance protection matches our values and mission.

Armed with this empowering perspective about protection, you’ll enjoy making decisions about how to protect your money, instead of feeling bullied into fear-based decision making by scare tactics.
Reasons You Want Insurance
]]>
Bruce Wehner & Rachel Marshall clean 36:56
The Family Office Model: Investing Like the Wealthy, with Richard C. Wilson – TMA 022 https://themoneyadvantage.com/family-office-invest-like-the-wealthy-richard-c-wilson/ Mon, 09 Apr 2018 00:00:03 +0000 https://themoneyadvantage.com/?p=1933 There’s a divergence between the investing strategies of the status quo and those of the ultra-successful.  The ultra-wealthy leverage a family office model so they can focus their efforts on what they do best.  Viewing wealth as a team sport allows you to stay focused and do what you love.  Most people use common financial thinking.  This has them feeling out of control, losing money, hanging on for the ride, and hoping everything works out. Instead, the ultra-wealthy have a completely different set of rules. If you follow the status quo, you’ll get status quo results. But if you want to create a life of wealth and freedom, learn from those who have created it.  And do what it takes to follow suit.   A Window into the Strategies of the Ultra-Wealthy We’re making it easy because we’re bringing the financial world of the ultra-wealthy in close to give you the opportunity to see it for yourself. In this episode, we asked Richard C. Wilson, the CEO of the Family Office Club, to share his experience in coordinating the wealth teams of multimillionaire and billionaire families. Like studying something under a microscope, here’s your window into elite investing.  You'll have the opportunity to touch, feel, and explore it for yourself. To achieve the extraordinary time and money freedom you desire, learn the way the wealthy think about investing.  Study their principles, their reasons, their goals, and their why.  Look through their lens and find out how they see the world differently. Instead of honing your investing through blood, tears, and poor decisions, learn how to invest like the wealthy. When you see what they are doing, you can model their decision-making.  This allows you to accelerate your wealth creation beyond the limits of what you thought was possible. We’ll answer: How do the ultra-wealthy invest differently than anyone else? How do they focus on what they know and can control? Why the ultra-wealthy value liquidity? How do the ultra-wealthy view diversification What is the importance of a family mission, values, goals, objectives, and governance in their investing strategy? From this conversation, you’ll gain insight on how to invest like the wealthy in your own life. The Big Picture If you’re following along in this series on saving and investing, you’ve realized the power of saving first.  You crave the peace of mind, stability, and confidence it brings you, and how it helps you create more. With a savings system in place, you’ve explored ways to store it most effectively to maximize your safety, liquidity, and growth. You are developing your investor identity to target your investing strategy.  Because of this, you're shrinking your risk and boosting your returns by investing in what you know and control. Now, we’ll zoom in on the investing strategy of the wealthy.  You'll see how they’re investing to achieve exceptional results. Wealth Team Coordinator for Multimillionaire and Billionaire Families Richard C. Wilson helps $100M+ net worth families create and manage their single family offices and currently manages 14 clients including mandates with three billionaire families and as the CEO of a $500M+ single family office and Head of Direct Investments for another with $200M+ in assets. Richard is also the founder of the Family Office Club, the #1 largest community in the industry with well over 1,500 registered single and multi-family offices which manage more than $1 Trillion in Assets Under Management.  At his 10 exclusive events per year, you hear from billionaire family members, top 50 multi-family offices, and secretive single family offices. He has spoken at over 150 conferences in 17 countries, has the #1 bestselling book in the family office industry, The Single Family Office: Creating, Operating, and Managing the Investments of a Single Family Office and a recently released book called How to Start a Family Office: Blueprint... There’s a divergence between the investing strategies of the status quo and those of the ultra-successful.  The ultra-wealthy leverage a family office model so they can focus their efforts on what they do best. 
Most people use common financial thinking.  This has them feeling out of control, losing money, hanging on for the ride, and hoping everything works out.

Instead, the ultra-wealthy have a completely different set of rules.

If you follow the status quo, you’ll get status quo results.

But if you want to create a life of wealth and freedom, learn from those who have created it.  And do what it takes to follow suit.

 


A Window into the Strategies of the Ultra-Wealthy
We’re making it easy because we’re bringing the financial world of the ultra-wealthy in close to give you the opportunity to see it for yourself.

In this episode, we asked Richard C. Wilson, the CEO of the Family Office Club, to share his experience in coordinating the wealth teams of multimillionaire and billionaire families.

Like studying something under a microscope, here’s your window into elite investing.  You'll have the opportunity to touch, feel, and explore it for yourself.

To achieve the extraordinary time and money freedom you desire, learn the way the wealthy think about investing.  Study their principles, their reasons, their goals, and their why.  Look through their lens and find out how they see the world differently.

Instead of honing your investing through blood, tears, and poor decisions, learn how to invest like the wealthy.

When you see what they are doing, you can model their decision-making.  This allows you to accelerate your wealth creation beyond the limits of what you thought was possible.

We’ll answer:

* How do the ultra-wealthy invest differently than anyone else?
* How do they focus on what they know and can control?
* Why the ultra-wealthy value liquidity?
* How do the ultra-wealthy view diversification
* What is the importance of a family mission, values, goals, objectives, and governance in their investing strategy?

From this conversation, you’ll gain insight on how to invest like the wealthy in your own life.
The Big Picture
If you’re following along in this series on saving and investing, you’ve realized the power of saving first.  You crave the peace of mind, stability, and confidence it brings you, and how it helps you create more.

With a savings system in place, you’ve explored ways to store it most effectively to maximize your safety, liquidity, and growth.

You are developing your investor identity to target your investing strategy.  Because of this, you're shrinking your risk and boosting your returns by investing in what you know and control.

Now, we’ll zoom in on the investing strategy of the wealthy.  You'll see how they’re investing to achieve exceptional results.
Wealth Team Coordinator for Multimillionaire and Billionaire Families
Richard C. Wilson helps $100M+ net worth families create and manage their single family offices and currently manages 14 clients including mandates with three billionaire families and as the CEO of a $500M+ single family office and Head of Direct Investments for another with $200M+ in assets.

Richard is also the founder of the Family Office Club, the #1 largest community in the industry with well over 1,500 registered single and multi-family offices which manage more than $1 Trillion in Assets Under Management.  At his 10 exclusive events per year, you hear from billionaire family members, top 50 multi-family offices, and secretive single family offices.]]>
Bruce Wehner & Rachel Marshall clean 50:15
Saving vs. Investing: What Is Investing? Part 2 – How to Find Your Best Investments – TMA 021 https://themoneyadvantage.com/saving-vs-investing-what-is-investing-part2-best-investments/ Mon, 02 Apr 2018 09:00:10 +0000 https://themoneyadvantage.com/?p=1808 In a sea of investment choices, it can be overwhelming to determine which are the best investments for you. But don’t let overwhelm keep you in the dark, procrastinating, making mediocre decisions, losing money, and perpetually frustrated. The first step to confident investing is having a clear picture of exactly what you want and WHY.  Knowing what you want allows you to set goals that will advance you towards your destination and measure your progress.  Secondly, prepare.  Next, you need to be armed with the tools to identify opportunities that match.  Finally, you implement, measure progress, and repeat. Define success Prepare Identify opportunities that match Implement Measure progress Rinse and repeat   In the last article, Saving vs. Investing: What is Investing? Part 1 – Cash Flow, we’ve illustrated the power of cash flow investing in creating financial freedom. Before that, we discussed the preparation of habitual saving that allows you to build usable capital. Today, we’ll help you select your opportunities by answering: How do I determine the best investments for me? How do I minimize risk in my investments? We’ll help you determine the best investments for you by showing you that the answer lies in the most unexpected place. And then we’ll give you the #1 secret to lowering your investment risk. How Do I Determine the Best Investments for Me? Now that you have a vision for what you want your investments to do, let’s go shopping.  How do you figure out what the best investments are? Asset Categories Instead of narrowing down your choices, we first need to expand the options.  Unfortunately, what you’re typically offered is like seeing the appetizer menu only, when there’s a full range of salad, soup, entrée, dessert, and cocktail menus to choose from. While you may have been led to believe that your options are all housed in the stock market, the world of investing is much broader. There are four main asset categories to choose from: Paper Assets Commodities Real Estate Business Paper Assets Paper assets include stocks, bonds, mutual funds, options, and the forex market. Within this category are equities (stocks), fixed income assets (bonds), and cash equivalents that include money market accounts. Often, paper assets are wrapped into a basket of mutual funds with various risk levels. There are many ways to invest in the stock market, including using a broker or through an individual brokerage account.  Strategies range from buy-and-hold, to options trading with puts and calls. Commodities Commodities are real, hard assets like gold, silver, crude oil, wheat, cattle, coffee, etc.  They are the tangible, physical asset itself.  Owning commodities is different than trading the futures market for these commodities, which would be classified as a paper asset. Real Estate Real estate is a tangible, hard asset of land and buildings.  It includes investing in rental real estate for cash flow, wholesaling, or fixing up to “flip.”  Property may be residential single-family homes, multi-family, or commercial real estate. Business Business is another asset class.  You can invest by owning a business, franchise ownership, running the business, being on a board of directors, investing money, investing time, or loaning people money. Now that we’ve widened the universe of investing, let’s hone in on the selection criteria for your best investments. To do that, we need to start with the right perspective.  This can best be illustrated with a story. The Tale of Two Investors The Frustrated Investor Jordan woke up and read the news over his cup of coffee.  Stocks expected to rally over a change of ownership.  At least it was hopeful. From his phone, he checked his portfolio, hoping to see something different than yesterday’s downward spiral that had left him sleepless for most of the night. He internally debated, In a sea of investment choices, it can be overwhelming to determine which are the best investments for you. But don’t let overwhelm keep you in the dark, procrastinating, making mediocre decisions, losing money, and perpetually frustrated. -
The first step to confident investing is having a clear picture of exactly what you want and WHY.  Knowing what you want allows you to set goals that will advance you towards your destination and measure your progress.  Secondly, prepare.  Next, you need to be armed with the tools to identify opportunities that match.  Finally, you implement, measure progress, and repeat.

* Define success
* Prepare
* Identify opportunities that match
* Implement
* Measure progress
* Rinse and repeat



 

In the last article, Saving vs. Investing: What is Investing? Part 1 – Cash Flow, we’ve illustrated the power of cash flow investing in creating financial freedom.

Before that, we discussed the preparation of habitual saving that allows you to build usable capital.

Today, we’ll help you select your opportunities by answering:

* How do I determine the best investments for me?
* How do I minimize risk in my investments?

We’ll help you determine the best investments for you by showing you that the answer lies in the most unexpected place.

And then we’ll give you the #1 secret to lowering your investment risk.
How Do I Determine the Best Investments for Me?
Now that you have a vision for what you want your investments to do, let’s go shopping.  How do you figure out what the best investments are?
Asset Categories
Instead of narrowing down your choices, we first need to expand the options.  Unfortunately, what you’re typically offered is like seeing the appetizer menu only, when there’s a full range of salad, soup, entrée, dessert, and cocktail menus to choose from.

While you may have been led to believe that your options are all housed in the stock market, the world of investing is much broader.

There are four main asset categories to choose from:

* Paper Assets
* Commodities
* Real Estate
* Business

Paper Assets
Paper assets include stocks, bonds, mutual funds, options, and the forex market.

Within this category are equities (stocks), fixed income assets (bonds), and cash equivalents that include money market accounts.

Often, paper assets are wrapped into a basket of mutual funds with various risk levels.

There are many ways to invest in the stock market, including using a broker or through an individual brokerage account.  Strategies range from buy-and-hold, to options trading with puts and calls.
Commodities
Commodities are real, hard assets like gold, silver, crude oil, wheat, cattle, coffee, etc.  They are the tangible, physical asset itself.  Owning commodities is different than trading the futures market for these commodities, which would be classified as a paper asset.
Real Estate
Real estate is a tangible, hard asset of land and buildings.  It includes investing in rental real estate for cash flow, wholesaling, or fixing up to “flip.”  Property may be residential single-family homes, multi-family, or commercial real estate.
Business
Business is another asset class.  You can invest by owning a business, franchise ownership, running the business, being on a board of directors, investing money, investing time, or loaning people money.

Now that we’ve widened the universe of investing, let’s hone in on the selection criteria for your best investment...]]>
Bruce Wehner & Rachel Marshall clean 38:59
Personal Finance Solutions for REALTORS®, with Moses Seuram – TMA 020 https://themoneyadvantage.com/personal-finance-solutions-for-realtors-moses-seuram/ Mon, 26 Mar 2018 09:00:43 +0000 https://themoneyadvantage.com/?p=1893 Many successful business owners struggle when it comes to planning for the future.  They have high incomes, live an upper-middle-class lifestyle or better, build growing businesses.  However, they don’t have a plan for future income that they’re confident will lead to financial freedom. This is no truer than in the REALTOR® community.  More than 50% of REALTORS® are broke at the end of their career.  They’re making good money, but overpaying in taxes, spending too much of their money, and don’t have cash flow.  50% don’t own their own homes.  Most want to invest in real estate to build multiple sources of income, but don’t have the capital to invest. This problem has come to the attention of NAR, the National Association of REALTORS®, a 1.2-Million-member Trade Association.  NAR’s leaders have recognized the need for financial planning among its members, saying “REALTORS® are successful in their careers, but struggle when it is time to retire.” 2017 National Association of REALTORS® Financial Planning Goals This year, NAR has plans to focus on this problem.  They’ve mobilized an advisory group in 2017 to develop programs and ideas to help their members start planning as early as they can to save for a strong financial future. In keeping with The Money Advantage’s purpose to empower business owners with financial education to increase their cash flow and control of their financial resources and accelerate their journey to financial freedom, we are actively creating solutions that address this need. To discuss solutions and a way forward for REALTORS®, we interviewed Moses Seuram, REALTOR® and the 2018 NYSAR (New York State Association of REALTORS®, Inc.) President-Elect. REALTORS and other business owners can glean from this conversation and be empowered to create financial freedom. From the Vantage Point of a Working REALTOR® and Local and National Leader Moses’ unique vantage point gives him the credibility to participate in creating the solution. He’s earned his way, not only as a successful REALTOR(R) but also as an accomplished leader who’s volunteering and giving back to his community. His accomplishments include: Licensed Real Estate Associate Broker with KeystoneRealtyUSA 2018 NYSAR (New York State Association of REALTORS®, Inc.) President-Elect 2013 President of LIBOR (Long Island Board of REALTORS®) 2013 YPN (Young Professionals Network) Top 20 Under 40 Lifetime Achievement Award 2009 – 2016 REALTORS® Honor Society 2010 REALTOR® Salesperson of the Year Treasurer for The Long Island REALTORS® Federal Credit Union Director, National Association of REALTORS® Executive Director, New York State Association of REALTORS® Along with the National Association of REALTORS®, Moses has also played an integral role in lobbying for key provisions for homeowners and REALTORS® in the 2017 Tax Reform. Additionally, he is a successful real estate investor who’s taking control of his financial life and living the principles of Prosperity Economics.  He models and teaches the value of paying yourself first, saving liquid capital, creating cash flow, investing in real estate, using Infinite Banking(Privatized Banking), and building a sound personal economy. He wants more than to have control over his own financial destiny and create time and money freedom.  His vision extends beyond himself to helping other REALTORS® take control of their financial life as well. As a leader, he is passionate about helping REALTORS® not be broke at the end of their career.  He wants to help them build longevity in their business, minimize taxes, master their cash flow, and invest in real estate. Whether or not you’re in real estate, we hope his story and lessons learned will give you insight into how to take control of your financial life and build your path to financial freedom. Topics Discussed in the Podcast Moses’ background on a working farm, and then as a medical EMT, Many successful business owners struggle when it comes to planning for the future.  They have high incomes, live an upper-middle-class lifestyle or better, build growing businesses.  However, they don’t have a plan for future income that they’re confid...
This is no truer than in the REALTOR® community.  More than 50% of REALTORS® are broke at the end of their career.  They’re making good money, but overpaying in taxes, spending too much of their money, and don’t have cash flow.  50% don’t own their own homes.  Most want to invest in real estate to build multiple sources of income, but don’t have the capital to invest.

This problem has come to the attention of NAR, the National Association of REALTORS®, a 1.2-Million-member Trade Association.  NAR’s leaders have recognized the need for financial planning among its members, saying “REALTORS® are successful in their careers, but struggle when it is time to retire.”


2017 National Association of REALTORS® Financial Planning Goals
This year, NAR has plans to focus on this problem.  They’ve mobilized an advisory group in 2017 to develop programs and ideas to help their members start planning as early as they can to save for a strong financial future.

In keeping with The Money Advantage’s purpose to empower business owners with financial education to increase their cash flow and control of their financial resources and accelerate their journey to financial freedom, we are actively creating solutions that address this need.

To discuss solutions and a way forward for REALTORS®, we interviewed Moses Seuram, REALTOR® and the 2018 NYSAR (New York State Association of REALTORS®, Inc.) President-Elect.

REALTORS and other business owners can glean from this conversation and be empowered to create financial freedom.
From the Vantage Point of a Working REALTOR® and Local and National Leader
Moses’ unique vantage point gives him the credibility to participate in creating the solution.

He’s earned his way, not only as a successful REALTOR(R) but also as an accomplished leader who’s volunteering and giving back to his community.

His accomplishments include:

* Licensed Real Estate Associate Broker with KeystoneRealtyUSA
* 2018 NYSAR (New York State Association of REALTORS®, Inc.) President-Elect
* 2013 President of LIBOR (Long Island Board of REALTORS®)
* 2013 YPN (Young Professionals Network) Top 20 Under 40 Lifetime Achievement Award
* 2009 – 2016 REALTORS® Honor Society
* 2010 REALTOR® Salesperson of the Year
* Treasurer for The Long Island REALTORS® Federal Credit Union
* Director, National Association of REALTORS®
* Executive Director, New York State Association of REALTORS®

Along with the National Association of REALTORS®, Moses has also played an integral role in lobbying for key provisions for homeowners and REALTORS® in the 2017 Tax Reform.

Additionally, he is a successful real estate investor who’s taking control of his financial life and living the principles of Prosperity Economics.  He models and teaches the value of paying yourself first, saving liquid capital, creating cash flow, investing in real estate,]]>
Bruce Wehner & Rachel Marshall clean 56:59
Saving vs. Investing: What Is Investing? Part 1 – Cash Flow – TMA 019 https://themoneyadvantage.com/saving-vs-investing-what-is-investing-part1-cash-flow/ Mon, 19 Mar 2018 09:00:39 +0000 https://themoneyadvantage.com/?p=1743 Most investing returns fizzle far beneath our expectations.  When we most want our money to make money, we end up flatlining, or even losing money. The prosperity and confidence we'd hoped for elude us, leaving us more anxious and uncertain instead.  Could it be that we have our sights on the wrong target?  Let's take a look at investing from a cash flow perspective to untangle the confusion and bring you investing clarity. You need to understand why this investing performance failure occurs, in order to overcome it, get your money working for you, and create the financial peace and prosperity you desire. This segment on investing tells you how.   Why Investing Is the Finale and the Catalyst of Saving This article fits into a larger series on saving and investing. We’ve explored the WHY, HOW, and WHAT of a successful savings strategy.  We gave clear guidelines on how to create the habit of paying yourself first to build an Emergency/Opportunity Fund that’s safe, liquid and growing.  We distinguished savings from investing and discussed the quality of various financial vehicles in fulfilling the role of savings. But the discussion on savings wouldn’t be complete without a framework for what to do with your savings.  Instead of leaving savings to accumulate slowly over time, we want to put those dollars to work in opportunities to accelerate financial freedom. Putting our capital to work to earn a return is precisely the role of investing. Saving and Investing, Better Together You don’t save forever without the objective of putting the dollars to work.  But you can’t put dollars to work until you’ve built them up first. And then, once you’ve invested and are earning dollars with your dollars, how do you continue your savings habit which was the foundation for your success in the first place? Saving and investing go hand-in-hand, like the chicken and the egg.  Which came first, no one knows, but each continues to support and perpetuate the other. Saving well will give you more money to invest.  And investing well will, in turn, give you more money to save. Both are equally important.  Saving and investing maximize your whole personal economy, if you get them working together. To top off this series on savings, we’ll now bring investing into the crosshairs.  This article will explore the WHAT and WHY of investing. Let’s key in on the finer points of investing to answer further: What are opportunities? What is investing? How is investing different from saving? What are the end goals of investing? How do investments change my financial life and create financial freedom? Investing is much larger than the steps of a deal, investment returns, or the best stocks today.  If you camp out in the HOW and WHAT but miss the WHY and the principles, you can end up way off track, losing money, and never reaching your potential. Our goal is to help you develop higher-level thinking about investing. If you are clear on the principles that govern investing, you’ll be able to make investment decisions that accomplish your goals better and faster. What Is Investing? Broadly, here’s the definition of an investment: a devoting, using, or giving of time, talent, emotional energy, or money for a purpose or to achieve something. The PRINCIPLE is: investing is anything that requires your time, energy, and/or money, in a way to produce more than what you put in. It’s planting a seed to reap a harvest. In relationships, this could be the investment of time and energy to achieve love, connection, and happiness. In education, perhaps you’d like to learn a new skillset like real estate investing or digital marketing.  It will require the investment of your time, energy, and money, with the hopes to increase your knowledge and competence. Financially, investing is an opportunity to put your money or capital to work for you to earn profitable returns. Most investing returns fizzle far beneath our expectations.  When we most want our money to make money, we end up flatlining, or even losing money. The prosperity and confidence we'd hoped for elude us, leaving us more anxious and uncertain instead. 
Could it be that we have our sights on the wrong target?  Let's take a look at investing from a cash flow perspective to untangle the confusion and bring you investing clarity.

You need to understand why this investing performance failure occurs, in order to overcome it, get your money working for you, and create the financial peace and prosperity you desire.

This segment on investing tells you how.

 


Why Investing Is the Finale and the Catalyst of Saving
This article fits into a larger series on saving and investing.

We’ve explored the WHY, HOW, and WHAT of a successful savings strategy.  We gave clear guidelines on how to create the habit of paying yourself first to build an Emergency/Opportunity Fund that’s safe, liquid and growing.  We distinguished savings from investing and discussed the quality of various financial vehicles in fulfilling the role of savings.

But the discussion on savings wouldn’t be complete without a framework for what to do with your savings.  Instead of leaving savings to accumulate slowly over time, we want to put those dollars to work in opportunities to accelerate financial freedom.

Putting our capital to work to earn a return is precisely the role of investing.
Saving and Investing, Better Together
You don’t save forever without the objective of putting the dollars to work.  But you can’t put dollars to work until you’ve built them up first.

And then, once you’ve invested and are earning dollars with your dollars, how do you continue your savings habit which was the foundation for your success in the first place?

Saving and investing go hand-in-hand, like the chicken and the egg.  Which came first, no one knows, but each continues to support and perpetuate the other.

Saving well will give you more money to invest.  And investing well will, in turn, give you more money to save.

Both are equally important.  Saving and investing maximize your whole personal economy, if you get them working together.

To top off this series on savings, we’ll now bring investing into the crosshairs.  This article will explore the WHAT and WHY of investing.

Let’s key in on the finer points of investing to answer further:

* What are opportunities?
* What is investing?
* How is investing different from saving?
* What are the end goals of investing?
* How do investments change my financial life and create financial freedom?

Investing is much larger than the steps of a deal, investment returns, or the best stocks today.  If you camp out in the HOW and WHAT but miss the WHY and the principles, you can end up way off track, losing money, and never reaching your potential.

Our goal is to help you develop higher-level thinking about investing.

If you are clear on the principles that govern investing, you’ll be able to make investment decisions that accomplish your goals better and faster.
What Is Investing?
Broadly, here’s the definition of an investment: a devoting, using, or giving of time, talent, emotional energy, or money for a purpose or to achieve something.
The PRINCIPLE is: investing is anything that requires your time, energy, and/or money, in a way to produce more than what you put in.
It’s planting a seed to reap a harvest.

In relationships, this could be the investment of time and energy to achieve lo...]]>
Bruce Wehner & Rachel Marshall clean 56:42
Transform Your Life and Business with the Power of Gratitude, with Kevin Clayson – TMA 018 https://themoneyadvantage.com/transform-your-life-power-of-gratitude-kevin-clayson/ Mon, 12 Mar 2018 09:00:32 +0000 https://themoneyadvantage.com/?p=1771 Gratitude is a key ingredient in the abundance mindset recipe required for building a life and business you love.  It’s like the yeast in a bread recipe or the coffee beans in the coffee.  In fact, I’d go so far as to say it’s the elixir of life.  It has the power to heal, elevate, bring clarity, create solutions, expand love, and increase your personal power.  It’s miraculous when it’s applied. But for many of us, gratitude is plentiful when things are going well, and non-existent when we face problems.  In the difficult moments, gratitude seems unattainable. So, we chalk it up to good intentions and cutesy idealism that doesn’t work. This conversation will help you believe again in gratitude's astonishing power and put it into action with a simple formula. We interviewed Kevin Clayson, author of FLIP the Gratitude Switch.  He has made it his life’s work to empower people with a powerful, tangible formula that puts gratitude to work.   The Chief Officer of Awesome Kevin Clayson is the President and Owner of Gratifuel, LLC and the Co-Founder and Director of Content and Marketing at Done for You Real Estate USA.  Kevin is an international professional speaker who shares his simple formula for unlimited joy and fulfillment. He has spoken to thousands of Middle School and High School students and is also a highly requested business and corporate speaker.  He has shared the stage with some of the biggest names in the personal development, speaking, coaching, business, and author world. Kevin's message is guaranteed to inspire you through stories of real-life experiences as a husband, a father, a multi-million-dollar business owner and the world's ONLY Chief Officer of Awesome! Mindset Is Everything I learned this truth about money from a mentor: Mental Capital X Relationship Capital = Financial Capital Your financial success is the result of your mindset and relationships.  Your mindset creates your financial outcomes.  An abundance mindset is the cause of financial abundance, not a result of it. Further, your mindset and relationships are the limiters on your financial success. If you want to create financial abundance, begin by making constant, incremental, daily improvements in your mindset. Gratitude Is Action The main reason why gratitude seems whimsical and fairy-tale-like is that it’s invisible and we don’t comprehend it. It’s easy to be grateful for things when life seems to be going our way.  But what then of those times when what we wish for seems to be far out of reach?  Could I suggest that we see gratitude as a disposition, a way of life that stands independent of our current situation?  In other words, I’m suggesting that instead of being thankful for things, we focus on being thankful in our circumstances, whatever they may be.  – Dieter Uchtdorf Gratitude is not an emotion or a feeling.  Emotions change like the wind, based on circumstances. It’s not gratitude journaling, which is an isolated event that's removed from the battlefront of our moment-to-moment challenges. It’s not positivity that ignores and escapes reality. Instead, it’s the most alive, commanding, invincible, foe-conquering reality of ACTION. Gratitude is not something you feel.  It is something you do.  We are wired to feel awesome when we activate gratitude inside of the frustration. - Kevin Clayson Even more potently, it’s the specific action you take in microscopic decision points throughout your day that changes your course, alters your reality, and transforms you. Frustration Is Inevitable Life is full of events that challenge and test us.  An illness, injury, disappointment, stressful conversation, or missing a goal. As humans, we’re designed to function best when we’re in a position of tension, where there’s distance between where we are, and where we want to be.  For the remainder of our time on this side of heaven, we and life itself will remain in that constant state of ten... Gratitude is a key ingredient in the abundance mindset recipe required for building a life and business you love.  It’s like the yeast in a bread recipe or the coffee beans in the coffee.  In fact, I’d go so far as to say it’s the elixir of life. abundance mindset recipe required for building a life and business you love.  It’s like the yeast in a bread recipe or the coffee beans in the coffee.  In fact, I’d go so far as to say it’s the elixir of life.  It has the power to heal, elevate, bring clarity, create solutions, expand love, and increase your personal power.  It’s miraculous when it’s applied.

But for many of us, gratitude is plentiful when things are going well, and non-existent when we face problems.  In the difficult moments, gratitude seems unattainable.

So, we chalk it up to good intentions and cutesy idealism that doesn’t work.

This conversation will help you believe again in gratitude's astonishing power and put it into action with a simple formula.

We interviewed Kevin Clayson, author of FLIP the Gratitude Switch.  He has made it his life’s work to empower people with a powerful, tangible formula that puts gratitude to work.

 


The Chief Officer of Awesome
Kevin Clayson is the President and Owner of Gratifuel, LLC and the Co-Founder and Director of Content and Marketing at Done for You Real Estate USA.  Kevin is an international professional speaker who shares his simple formula for unlimited joy and fulfillment.

He has spoken to thousands of Middle School and High School students and is also a highly requested business and corporate speaker.  He has shared the stage with some of the biggest names in the personal development, speaking, coaching, business, and author world.

Kevin's message is guaranteed to inspire you through stories of real-life experiences as a husband, a father, a multi-million-dollar business owner and the world's ONLY Chief Officer of Awesome!
Mindset Is Everything
I learned this truth about money from a mentor:
Mental Capital X Relationship Capital = Financial Capital
Your financial success is the result of your mindset and relationships.  Your mindset creates your financial outcomes.  An abundance mindset is the cause of financial abundance, not a result of it.

Further, your mindset and relationships are the limiters on your financial success.

If you want to create financial abundance, begin by making constant, incremental, daily improvements in your mindset.
Gratitude Is Action
The main reason why gratitude seems whimsical and fairy-tale-like is that it’s invisible and we don’t comprehend it.
It’s easy to be grateful for things when life seems to be going our way.  But what then of those times when what we wish for seems to be far out of reach?  Could I suggest that we see gratitude as a disposition, a way of life that stands independent of our current situation?  In other words, I’m suggesting that instead of being thankful for things, we focus on being thankful in our circumstances, whatever they may be.  – Dieter Uchtdorf

Gratitude is not an emotion or a feeling.  Emotions change like the wind, based on circumstances.

It’s not gratitude journaling, which is an isolated event that's removed from the battlefront of our moment-to-moment challenges.

It’s not positivity that ignores and escapes reality.

Instead, it’s the most alive, commanding, invincible, foe-conquering reality of ACTION.

Gratitude is not something you feel.  It is something you do.  We are wired to feel awesome when we activate gratitude inside of the frustration. - Kevin Clayson

Even more potently,]]>
Bruce Wehner & Rachel Marshall clean 1:05:38
Saving vs. Investing: What Is Savings? – TMA 017 https://themoneyadvantage.com/saving-vs-investing-what-is-savings/ Mon, 05 Mar 2018 10:00:49 +0000 https://themoneyadvantage.com/?p=1670 What Is Savings: Why We Need a Definition In all the financial pressure you feel to plan for the future, have you ever stopped to consider, fundamentally, what is savings?  Often the answer is in asking the right questions.  Concerning great questions, this is one that will behoove you to ask, understand, and answer that question for yourself.  Savings.  We love having it.  We know we need it.  Everybody wants more of it. Savings is a precept of wealth-building.  It’s a foundational cornerstone and precursor to success in almost every other area of your financial life. And yet, frankly, the savings levels of American adults are embarrassing.  Most people’s savings accounts languish far beneath the level of what they want to have. According to a 2016 GOBankingRates survey, 34% of all adults in the U.S. have $0 in savings, 35% have less than $1000, and ONLY 15% have $10,000 or more. There’s a disparity between our desire to save and the amount we have in savings.  For that reason, our mindset about savings becomes laden with guilt. To add insult to injury, there’s confusion about what savings, in fact, is. It’s pretty hard to achieve something you don’t feel good about or have a clear definition of.  It will continually be “un-prioritized.”   The Nuts and Bolts To clear the air and help you save more, let’s get down to brass tacks. We’re tackling what savings is and what it isn’t.  We’ll answer: What is savings and what is it not? How do I know if it’s savings? Where can I save my money? What are the best places to save money? And we’ll share the four top reasons why people aren’t saving, to help you overcome them and set you on a course to financial confidence and freedom. The foundations are the most important pieces to get right.  Whether you have significant savings and are looking for a better storage tank, want to beef up your savings, or if you’re just getting started, this discussion will help you get the clarity you need to up-level your savings. Related Articles and Podcast Episodes In Why the Wealthy Love Cash (Savings) Part 1 and Why the Wealthy Love Cash Part 2, we discussed the reasons the wealthy save: to create confidence and peace of mind, to sleep better at night, and to have the liquidity to jump into the right opportunities. In How to Save Like the Wealthy, we discussed how to design a system for managing the flow of your money that builds an emergency and opportunity fund and puts you in control. Our Definition of Savings Needs Work In this article, we’ll bring you 100% clarity on what savings is. Firstly, let’s start with your definition of savings.  What does it mean to you?  Write down your thoughts before you proceed, and we’ll revisit them at the end.  Notice any ambiguity in your thinking. If you asked a roomful of people to answer the question, “What is savings?”, chances are, you’d get a handful of different responses. Some might say it’s having money left over each month after your spending.  Another might say it’s their retirement account.  Another may say savings is their savings account, an emergency fund, or a rainy-day fund. Even the all-knowing Google or dictionary definition will yield many answers, but not give clarity on what it means financially and what to do about it. This haziness makes it challenging to move the needle from “a nice idea” to something that’s concretely and habitually built into the fabric of your life. The Starting Point of Cash Flow The Merriam-Webster dictionary defines savings as: The excess of income over consumption expenditures, money put by. This speaks to the verb – the action – of saving.  Saving as an action is what you do.  It means “not spending.” The first step in saving is to have monthly cash flow, which is money not spent.  Cash flow is the difference between your income and your expenses.  You can also call it profit or surplus. Income – Expenses = Cash Flow What Is Savings: Why We Need a Definition In all the financial pressure you feel to plan for the future, have you ever stopped to consider, fundamentally, what is savings?  Often the answer is in asking the right questions. In all the financial pressure you feel to plan for the future, have you ever stopped to consider, fundamentally, what is savings?  Often the answer is in asking the right questions.  Concerning great questions, this is one that will behoove you to ask, understand, and answer that question for yourself.

Savings.  We love having it.  We know we need it.  Everybody wants more of it.

Savings is a precept of wealth-building.  It’s a foundational cornerstone and precursor to success in almost every other area of your financial life.

And yet, frankly, the savings levels of American adults are embarrassing.  Most people’s savings accounts languish far beneath the level of what they want to have.

According to a 2016 GOBankingRates survey, 34% of all adults in the U.S. have $0 in savings, 35% have less than $1000, and ONLY 15% have $10,000 or more.

There’s a disparity between our desire to save and the amount we have in savings.  For that reason, our mindset about savings becomes laden with guilt.

To add insult to injury, there’s confusion about what savings, in fact, is.

It’s pretty hard to achieve something you don’t feel good about or have a clear definition of.  It will continually be “un-prioritized.”

 


The Nuts and Bolts
To clear the air and help you save more, let’s get down to brass tacks.

We’re tackling what savings is and what it isn’t.  We’ll answer:

* What is savings and what is it not?
* How do I know if it’s savings?
* Where can I save my money?
* What are the best places to save money?

And we’ll share the four top reasons why people aren’t saving, to help you overcome them and set you on a course to financial confidence and freedom.

The foundations are the most important pieces to get right.  Whether you have significant savings and are looking for a better storage tank, want to beef up your savings, or if you’re just getting started, this discussion will help you get the clarity you need to up-level your savings.
Related Articles and Podcast Episodes
In Why the Wealthy Love Cash (Savings) Part 1 and Why the Wealthy Love Cash Part 2, we discussed the reasons the wealthy save: to create confidence and peace of mind, to sleep better at night, and to have the liquidity to jump into the right opportunities.

In How to Save Like the Wealthy, we discussed how to design a system for managing the flow of your money that builds an emergency and opportunity fund and puts you in control.
Our Definition of Savings Needs Work
In this article, we’ll bring you 100% clarity on what savings is.

Firstly, let’s start with your definition of savings.  What does it mean to you?  Write down your thoughts before you proceed, and we’ll revisit them at the end.  Notice any ambiguity in your thinking.

If you asked a roomful of people to answer the question, “What is savings?”, chances are, you’d get a handful of different responses.

Some might say it’s having money left over each month after your spending.  Another might say it’s their retirement account.  Another may say savings is their savings account, an emergency fund, or a rainy-day fund.

Even the all-knowing Google or dictionary definition will yield many answers...]]>
Bruce Wehner & Rachel Marshall clean 58:46
Trump’s Tax Reform: What Entrepreneurs Need to Know, with Dustin Griffiths – TMA 016 https://themoneyadvantage.com/trumps-tax-reform-dustin-griffiths/ Mon, 26 Feb 2018 10:00:21 +0000 https://themoneyadvantage.com/?p=1720 Trump's tax reform has made a lot of big changes to the tax code.  Because of the overhaul, our proactive tax team posted a series of blogs outlining the changes and what they mean for you.  When we read them, we knew right away that we wanted to share them with you. So, we brought Dustin Griffiths back on the podcast to share the changes we think are most relevant to the small business owner.  We're also sharing the links to all of their blogs to help you gain more clarity. Disclaimer: We've published this content for educational purposes only.  For individual recommendations and advice for your specific situation, please consult with a qualified tax professional.   Listen to the Podcast This conversation expanded on each of the following topics.  We discussed examples and situations to help you understand how the changes will apply to you.  To gain the greatest understanding, be sure to listen to the conversation. How Trump's Tax Reform Affects You Corporate Tax Rates Corporate tax rates went down from 34% to 21%.  However, C corps pay a double tax.  They're taxed at the corporate level and again at the individual shareholder level when you pay yourself.  Your total tax rate must account for both, and may effectively create a total tax rate of 36 - 51%. 20% Deduction for Pass-Through Entities Pass-through entities, like partnerships, S corporations, and sole proprietors, now will only have to claim 80% of business taxable income.  However, there are additional calculations if your AGI is over $315K or ($157K if you're single), and for service-based businesses, to determine if and how you can use this deduction. This is a “YUGE” tax savings for many small business owners!  Without doing anything differently, many of you are going to get a 20% reduction of your business's taxable income. Vehicle and Asset Purchases Asset purchases have received an expansion of the Bonus Depreciation and Section 179 definition, as well as the depreciation limits.  This allows you to deduct 100% of the depreciation up front, in many cases, being able to fully expense the purchase price in the first year, for new and used assets. This expansion puts more dollars in your pocket for large asset purchases.  However, the true test to determine whether to purchase an asset is whether you needed it in the first place. Business Expense Changes You can no longer deductions meals and entertainment expenses unless you use them for your employees. If you find that you had a lot of these entertainment expenses or eating out with clients, business just got more expensive. Changes in Real Estate Tax Laws For residential or commercial real estate investors, the reform simplified the definition of property improvements and limited the 1031 like-kind exchanges to real property.  Additionally, rules to inventory, including real property, allow you to deduct the purchase of inventory up-front, instead of at the sale. Individual Tax Return Changes For most people, tax rates decreased by around 2%.  The standard deduction nearly doubled, and many of the itemized deductions were eliminated (including miscellaneous itemized deductions, mortgage interest deductions for HELOCs or for loans over $750k).  This simplifies the filing for many people who will no longer benefit from itemizing their deductions to reduce their taxable income.  Personal exemptions of around $4k per person were eliminated, and the Child Tax Credit was increased from $1k to $2k per child.  The deduction for state and local taxes was limited to $10k.  Medical expenses can be claimed if they're over 7.5% of AGI, making it easier to deduct these costs. Other Topics Transportation expenses - The employer is no longer able to deduct costs of employee transportation to and from work. Research and experimental - Now instead of having the option to expense this purchase or amortize over 5 years, you must amortize. Trump's tax reform has made a lot of big changes to the tax code.  Because of the overhaul, our proactive tax team posted a series of blogs outlining the changes and what they mean for you.  When we read them,
So, we brought Dustin Griffiths back on the podcast to share the changes we think are most relevant to the small business owner.  We're also sharing the links to all of their blogs to help you gain more clarity.

Disclaimer: We've published this content for educational purposes only.  For individual recommendations and advice for your specific situation, please consult with a qualified tax professional.

 
Listen to the Podcast


This conversation expanded on each of the following topics.  We discussed examples and situations to help you understand how the changes will apply to you.  To gain the greatest understanding, be sure to listen to the conversation.
How Trump's Tax Reform Affects You
Corporate Tax Rates
Corporate tax rates went down from 34% to 21%.  However, C corps pay a double tax.  They're taxed at the corporate level and again at the individual shareholder level when you pay yourself.  Your total tax rate must account for both, and may effectively create a total tax rate of 36 - 51%.
20% Deduction for Pass-Through Entities
Pass-through entities, like partnerships, S corporations, and sole proprietors, now will only have to claim 80% of business taxable income.  However, there are additional calculations if your AGI is over $315K or ($157K if you're single), and for service-based businesses, to determine if and how you can use this deduction.

This is a “YUGE” tax savings for many small business owners!  Without doing anything differently, many of you are going to get a 20% reduction of your business's taxable income.
Vehicle and Asset Purchases
Asset purchases have received an expansion of the Bonus Depreciation and Section 179 definition, as well as the depreciation limits.  This allows you to deduct 100% of the depreciation up front, in many cases, being able to fully expense the purchase price in the first year, for new and used assets.

This expansion puts more dollars in your pocket for large asset purchases.  However, the true test to determine whether to purchase an asset is whether you needed it in the first place.
Business Expense Changes
You can no longer deductions meals and entertainment expenses unless you use them for your employees.

If you find that you had a lot of these entertainment expenses or eating out with clients, business just got more expensive.
Changes in Real Estate Tax Laws
For residential or commercial real estate investors, the reform simplified the definition of property improvements and limited the 1031 like-kind exchanges to real property.  Additionally, rules to inventory, including real property, allow you to deduct the purchase of inventory up-front, instead of at the sale.
Individual Tax Return Changes
For most people, tax rates decreased by around 2%.  The standard deduction nearly doubled, and many of the itemized deductions were eliminated (including miscellaneous itemized deductions, mortgage interest deductions for HELOCs or for loans over $750k).  This simplifies the filing for many people who will no longer benefit from itemizing their deductions to reduce their taxable income.  Personal exemptions of around $4k per person were eliminated, and the Child Tax Credit was increased from $1k to $2k per child.  The deduction for state and local taxes was limited to $10k.  Medical expenses can be claimed if they're over 7.5% of AGI, making it easier to deduct these costs.
Other Topics

]]>
Bruce Wehner & Rachel Marshall clean 1:02:06
How to Save Like the Wealthy – TMA 015 https://themoneyadvantage.com/how-to-save-like-the-wealthy/ Mon, 19 Feb 2018 10:00:36 +0000 https://themoneyadvantage.com/?p=1538 If you want to seize opportunities like the wealthy, you will need to save like the wealthy. Building a financial system is a lot like barrel racing. Far away from the roar of audiences, the outcome of the race is determined by the hours of preparation and conditioning spent outside the ring, out of the public eye, before the race. Likewise, in building true wealth, developing a savings system is the preparation and conditioning it takes to succeed.     Everything I Needed to Know I Learned from Equestrian Barrel Racing As a teen, I rode horses.  I got into competitive racing in speed and agility games like barrel racing, pole weaving, and keyhole. Just about everything I needed to know about life, I learned from the process of training to win in the ring. Where Winning HAPPENS The climax of barrel racing was the high-adrenaline, crowd-cheering, dirt-flying 28 seconds careening around the cloverleaf pattern of the barrel racing course.  Or it was the 11 seconds spent in the ring flashing through the pole-weaving course. I lived for that part.  The moment of truth.  It’s where the winning happened. From a spectator’s vantage point, it would be so easy to think it was the only part that mattered. Where Winning Is CREATED However, far more critical to the outcome were the hours upon hours of training and preparation. To perform well, conditioning was essential. There were warm-ups and cool-downs at a brisk trot.  We raced for miles upon miles across varied terrain to build endurance and stamina.  There were hundreds of hours of rides through the fields and forests, on trails, through swamps, and over fallen logs as we built agility and light-footedness. We took hundreds of practice runs at all paces, focusing on the fundamentals.  There were lurching starts, and sliding stops at the gentle flick of a wrist.  We practiced lead changes at a light pace with slight shift of weight. We worked over and over on exactly the right lead changes at the exactly the right moment, leaning into the turns at exactly the right point in the turn with exactly the right angles.  My horse and I learned to pay attention to the littlest things in order to be in tune with each other, listening, dancing. Precision.  Endurance.  Agility.  Speed.  Conditioning was the make-or-break of racing. Need I mention the even lesser-applauded routines like feeding, grooming, doctoring, and barn cleaning?  Compared to the competition?  Boring.  No audience.  No cheering crowds.  No timers or metrics. The point?  If you focus just on the flashy event, you’ll miss all the components that make up the win: the preparation, the conditioning, and the set-up. Winning Is in the Fundamentals and Conditioning, Not the Climax  But this is where the ability to win was built: in the fundamentals. Many people put off the boring stuff of saving now, thinking they need a windfall or higher income first. But having a systematic plan to save in your personal economy is what sets you up to win in the first place. A disciplined, consistent, routine way of handling your money that perpetually builds savings is the preparation and conditioning required to create wealth. The truly wealthy have a definitive WHY.  They’ve developed their financial philosophy and rules.  They concentrate on and value the preparation and conditioning, rather than the singular event. They make the preparation the main thing. Your Savings System The habit and discipline of saving is financial conditioning that prepares you and creates the ability to win. Without preparation, you shoot yourself in the foot.  When the opportunity comes knocking, you'll have to pass because you don’t have the money. In Why the Wealthy Love Cash, Part 1, we revealed the most important reasons to have a significant cash buffer.  When you have a considerable emergency/opportunity fund, you’re confident and secure.  You sleep better at night, If you want to seize opportunities like the wealthy, you will need to save like the wealthy. - Building a financial system is a lot like barrel racing. - Far away from the roar of audiences, the outcome of the race is determined by the hours of prepa...
Building a financial system is a lot like barrel racing.

Far away from the roar of audiences, the outcome of the race is determined by the hours of preparation and conditioning spent outside the ring, out of the public eye, before the race.

Likewise, in building true wealth, developing a savings system is the preparation and conditioning it takes to succeed.

 

 


Everything I Needed to Know I Learned from Equestrian Barrel Racing
As a teen, I rode horses.  I got into competitive racing in speed and agility games like barrel racing, pole weaving, and keyhole.

Just about everything I needed to know about life, I learned from the process of training to win in the ring.
Where Winning HAPPENS
The climax of barrel racing was the high-adrenaline, crowd-cheering, dirt-flying 28 seconds careening around the cloverleaf pattern of the barrel racing course.  Or it was the 11 seconds spent in the ring flashing through the pole-weaving course.

I lived for that part.  The moment of truth.  It’s where the winning happened.

From a spectator’s vantage point, it would be so easy to think it was the only part that mattered.
Where Winning Is CREATED
However, far more critical to the outcome were the hours upon hours of training and preparation.

To perform well, conditioning was essential.

There were warm-ups and cool-downs at a brisk trot.  We raced for miles upon miles across varied terrain to build endurance and stamina.  There were hundreds of hours of rides through the fields and forests, on trails, through swamps, and over fallen logs as we built agility and light-footedness.

We took hundreds of practice runs at all paces, focusing on the fundamentals.  There were lurching starts, and sliding stops at the gentle flick of a wrist.  We practiced lead changes at a light pace with slight shift of weight.

We worked over and over on exactly the right lead changes at the exactly the right moment, leaning into the turns at exactly the right point in the turn with exactly the right angles.  My horse and I learned to pay attention to the littlest things in order to be in tune with each other, listening, dancing.

Precision.  Endurance.  Agility.  Speed.  Conditioning was the make-or-break of racing.

Need I mention the even lesser-applauded routines like feeding, grooming, doctoring, and barn cleaning?  Compared to the competition?  Boring.  No audience.  No cheering crowds.  No timers or metrics.

The point?  If you focus just on the flashy event, you’ll miss all the components that make up the win: the preparation, the conditioning, and the set-up.
Winning Is in the Fundamentals and Conditioning, Not the Climax 
But this is where the ability to win was built: in the fundamentals.

Many people put off the boring stuff of saving now, thinking they need a windfall or higher income first.

But having a systematic plan to save in your personal economy is what sets you up to win in the first place.
A disciplined, consistent, routine way of handling your money that perpetually builds savings is the preparation and conditioning required to create wealth.
The truly wealthy have a definitive WHY.  They’ve developed their financial philosophy and rules.  They concentrate on and value the preparation and conditioning, rather than the singular event.

They make the preparation the main thing.
Your Savings System
The habit and discipline of saving is financial conditioning that prepares you and creates the ability to win.

Without preparation, you shoot yourself in the foot.]]>
Bruce Wehner & Rachel Marshall clean 39:29
Explode Real Estate Returns with Privatized Banking, with Jimmy Vreeland – TMA 014 https://themoneyadvantage.com/explode-real-estate-returns-privatized-banking-jimmy-vreeland/ Mon, 12 Feb 2018 10:00:50 +0000 https://themoneyadvantage.com/?p=1601 One growing company is maximizing their real estate returns by using the premier financing strategy of the wealthy.  As stand-alone tools, both real estate and high cash value life insurance are top-notch.  Their powers of cash flow, appreciation, equity, leverage, tax advantages, and a hedge against inflation are unrivaled by any other product. But when you combine these two high-quality assets together, your money does two things at the same time.  This gives you an unfair advantage parallel to none. If you’re a believer in one or the other, see how using these two assets symbiotically will supercharge your results.   Two Starting Points to the Same Bridge You may be starting from one pillar or the other. On the one hand, perhaps you have cash value life insurance.  You want more than just to let the money sit in the policy.  You’re asking: How can I use my cash value life insurance to invest in cash-flowing real estate to accelerate my financial freedom? On the other hand, perhaps you are a real estate investor.  You want to finance most efficiently to increase your gains.  You’re asking: How do I amplify my real estate returns, by financing through cash value life insurance? We found no one better to help you understand this strategy than Jimmy Vreeland.  He's a real estate investor who is exploding his real estate returns by building a bridge between these two assets. Jimmy is a passionate real estate investor who is also helping other investors to reap the rewards of real estate investing. The Advantages of Real Estate Jimmy was an Army Ranger and US military officer who read Rich Dad, Poor Dad while he was in Afghanistan. He realized that he wanted to create systematic, scalable wealth through cash flow in a low-tax environment. He wanted an asset that he controlled, where he could build wealth by creating value instead of gambling through investments on Wall Street. All the indicators pointed to real estate. Consequently, he bought his first property in 2006 and began adding one property per year. The Beginnings of a Real Estate Lease Options Empire In 2014, Jimmy and Bob Scott, both former US Military officers and Academy Graduates, partnered to create Joint Ops Properties to capitalize on unique opportunities in the US Real Estate market. Joint Ops is now a leader in lease option investment properties.  They have decades of combined experience behind them, with an emphasis on the St. Louis area. Joint Ops Properties has been able to secure over 160 distressed properties, plus another 40 turnkey properties, often at just 30 to 40 cents on the dollar.  Joint Ops currently focuses on single-family homes and tenants seeking a lease to own option, resulting in tenant buyers with more “skin in the game” as opposed to a traditional tenant with no long-term interest in the home. Providing Value to Tenants and Investors Joint Ops is providing value to tenants, investors, and the community of St. Louis.  A New Lease on Life for Tenants They offer lease options to tenants in the St. Louis, MO area, allowing them to sign an option to buy at an agreed-upon price in 2 years in exchange for 5% of the value up front.  This allows the tenant time and consistent payments to fix their credit so that they can work their way into an FHA 30-year mortgage. Cash Flow for Investors For investors looking for monthly cash flow, Joint Ops offers private lending and turnkey real estate options. Private lending puts the lender in the 1st and only lien position for a single property.  As the financier of the property, the lender receives monthly cash flow income.  If the tenant exercises the option to purchase, the lender receives the initial payment back. They also provide turnkey solutions as a viable choice for high-paid professionals or business owners who want to get started in real estate investing, but don’t have the knowledge or experience, One growing company is maximizing their real estate returns by using the premier financing strategy of the wealthy.  As stand-alone tools, both real estate and high cash value life insurance are top-notch.  Their powers of cash flow, appreciation, 
As stand-alone tools, both real estate and high cash value life insurance are top-notch.  Their powers of cash flow, appreciation, equity, leverage, tax advantages, and a hedge against inflation are unrivaled by any other product.

But when you combine these two high-quality assets together, your money does two things at the same time.  This gives you an unfair advantage parallel to none.

If you’re a believer in one or the other, see how using these two assets symbiotically will supercharge your results.

 


Two Starting Points to the Same Bridge
You may be starting from one pillar or the other.

On the one hand, perhaps you have cash value life insurance.  You want more than just to let the money sit in the policy.  You’re asking: How can I use my cash value life insurance to invest in cash-flowing real estate to accelerate my financial freedom?

On the other hand, perhaps you are a real estate investor.  You want to finance most efficiently to increase your gains.  You’re asking: How do I amplify my real estate returns, by financing through cash value life insurance?

We found no one better to help you understand this strategy than Jimmy Vreeland.  He's a real estate investor who is exploding his real estate returns by building a bridge between these two assets.

Jimmy is a passionate real estate investor who is also helping other investors to reap the rewards of real estate investing.
The Advantages of Real Estate
Jimmy was an Army Ranger and US military officer who read Rich Dad, Poor Dad while he was in Afghanistan.

He realized that he wanted to create systematic, scalable wealth through cash flow in a low-tax environment.

He wanted an asset that he controlled, where he could build wealth by creating value instead of gambling through investments on Wall Street.

All the indicators pointed to real estate.

Consequently, he bought his first property in 2006 and began adding one property per year.
The Beginnings of a Real Estate Lease Options Empire
In 2014, Jimmy and Bob Scott, both former US Military officers and Academy Graduates, partnered to create Joint Ops Properties to capitalize on unique opportunities in the US Real Estate market.

Joint Ops is now a leader in lease option investment properties.  They have decades of combined experience behind them, with an emphasis on the St. Louis area.

Joint Ops Properties has been able to secure over 160 distressed properties, plus another 40 turnkey properties, often at just 30 to 40 cents on the dollar.  Joint Ops currently focuses on single-family homes and tenants seeking a lease to own option, resulting in tenant buyers with more “skin in the game” as opposed to a traditional tenant with no long-term interest in the home.
Providing Value to Tenants and Investors
Joint Ops is providing value to tenants, investors, and the community of St. Louis. 
A New Lease on Life for Tenants
They offer lease options to tenants in the St. Louis, MO area, allowing them to sign an option to buy at an agreed-upon price in 2 years in exchange for 5% of the value up front.  This allows the tenant time and consistent payments to fix their credit so that they can work their way into an FHA 30-year mortgage.
Cash Flow for Investors
For investors looking for monthly cash flow, Joint Ops offers private lending and turnkey real estate options.

Private lending puts the lender in the 1st and only lien position for a single property.  As the financier of the property, the lender receives monthly cash flow income.  If the tenant exercises the option to purchase,]]>
Bruce Wehner & Rachel Marshall clean 49:15
Why the Wealthy Love Cash, Part 2 – TMA 013 https://themoneyadvantage.com/why-the-wealthy-love-cash-part-2/ Mon, 05 Feb 2018 10:00:59 +0000 https://themoneyadvantage.com/?p=798 The concept of holding cash – savings – is such an intricate, multi-faceted one.  This series will walk you through the WHY, the compelling reasons to value and build cash savings.  Then, we’ll show you how to apply it and reveal the key distinctions to keep you on track. If you have a great enough WHY, then figuring out what to do becomes important.  But it all comes back to WHY. Since we love Simon Sinek’s Start with Why concept, we aim to apply it in everything we communicate.  You may have noticed.     Real Life Stories and Examples of the Ultra-Wealthy Who Have a Strong Cash Position We know that theory without concrete evidence and facts to back it up is useless.  In fact, it will probably just fade out of your mind like a sand castle washed away by the waves. Today we're digging into some examples of the ultra-wealthy who are comfortable being in cash.  They don't feel the need to be fully invested all the time. We’ll discuss examples of Suze Orman and Mark Cuban, and their reasons for a strong position of safety and cash. We’ll point you to a bank report showing that the super-rich with over $30 Million in investible assets often have about 35% of their total portfolio in cash. And then, we’ll give you a Cash Flow Awareness Exercise you can do personally.  It's the same exercise that we use for our clients to help them think through their spending so they can free up more surplus cash each month. An Empowering Philosophy of Saving In Why the Wealthy Love Cash, Part 1, we discussed many of the ideas and philosophy about WHY savings is not only relevant but also crucial to your success. Cash savings creates peace of mind so you’re able to operate from a mindset of abundance and confidence.  With that perspective, you'll make better decisions and have greater clarity. Savings has guarantees.  That creates more options in the future. Because you have peace of mind and guarantees, you’re not desperate.  You focus your time and energy on the right clients, activities, and investments that align with your Investor DNA.  In this way, you create more value. You have the cash to cover setbacks, unexpected expenses, emergencies, or failure.  You’re able to rebound because cash is king, especially in a crisis. Budgeting and paying off debt are two strategies often touted as the root of financial confidence and freedom.  But neither create the same confidence that savings will. Aside from saving for emergencies, one of the primary reasons to save is for opportunities.  Not surprisingly, opportunities find people with cash. Another reason to put money aside is for no-regrets fun.  That way, you don’t have to feel guilty when you spend just for your personal enjoyment.  Because you've prioritized that spending, you'll no longer have the negative feelings of guilt tainting your experience.  When you’re doing what you love and enjoying life, you are more energized and productive in every other area of your life. Additional reasons to save include future taxes, inflation, planned obsolescence and technological advances. After laying down clear reasons for why savings is a priority and what it allows you to do, we’re ready to look at some context. Learn from Success One of the premises woven into our mindset at The Money Advantage is that, because success leaves clues, we’re able to learn from the successful few and discard the “advice” of the crowds who aren’t living the life you want to live. As we do so, I want to encourage you to find where your thinking aligns or doesn’t, with these stories.  Just because something is right for someone, and they have their reasons, doesn’t mean that your objectives are the same as theirs.  We want to learn not only what they did, but why.  Then we can model the successful few. Thinking About Your Thinking As we discuss the tangible action of saving, you may become aware of a different set of choices that you'd like to be making.... The concept of holding cash – savings – is such an intricate, multi-faceted one.  This series will walk you through the WHY, the compelling reasons to value and build cash savings.  Then, we’ll show you how to apply it and reveal the key distinction... 
Then, we’ll show you how to apply it and reveal the key distinctions to keep you on track.

If you have a great enough WHY, then figuring out what to do becomes important.  But it all comes back to WHY.

Since we love Simon Sinek’s Start with Why concept, we aim to apply it in everything we communicate.  You may have noticed.

 

 


Real Life Stories and Examples of the Ultra-Wealthy Who Have a Strong Cash Position
We know that theory without concrete evidence and facts to back it up is useless.  In fact, it will probably just fade out of your mind like a sand castle washed away by the waves.

Today we're digging into some examples of the ultra-wealthy who are comfortable being in cash.  They don't feel the need to be fully invested all the time.

We’ll discuss examples of Suze Orman and Mark Cuban, and their reasons for a strong position of safety and cash.

We’ll point you to a bank report showing that the super-rich with over $30 Million in investible assets often have about 35% of their total portfolio in cash.

And then, we’ll give you a Cash Flow Awareness Exercise you can do personally.  It's the same exercise that we use for our clients to help them think through their spending so they can free up more surplus cash each month.
An Empowering Philosophy of Saving
In Why the Wealthy Love Cash, Part 1, we discussed many of the ideas and philosophy about WHY savings is not only relevant but also crucial to your success.

Cash savings creates peace of mind so you’re able to operate from a mindset of abundance and confidence.  With that perspective, you'll make better decisions and have greater clarity.

Savings has guarantees.  That creates more options in the future.

Because you have peace of mind and guarantees, you’re not desperate.  You focus your time and energy on the right clients, activities, and investments that align with your Investor DNA.  In this way, you create more value.

You have the cash to cover setbacks, unexpected expenses, emergencies, or failure.  You’re able to rebound because cash is king, especially in a crisis.

Budgeting and paying off debt are two strategies often touted as the root of financial confidence and freedom.  But neither create the same confidence that savings will.

Aside from saving for emergencies, one of the primary reasons to save is for opportunities.  Not surprisingly, opportunities find people with cash.

Another reason to put money aside is for no-regrets fun.  That way, you don’t have to feel guilty when you spend just for your personal enjoyment.  Because you've prioritized that spending, you'll no longer have the negative feelings of guilt tainting your experience.  When you’re doing what you love and enjoying life, you are more energized and productive in every other area of your life.

Additional reasons to save include future taxes, inflation, planned obsolescence and technological advances.

After laying down clear reasons for why savings is a priority and what it allows you to do, we’re ready to look at some context.
Learn from Success
One of the premises woven into our mindset at The Money Advantage is that, because success leaves clues, we’re able to learn from the successful few and discard the “advice” of the crowds who aren’t liv...]]>
Bruce Wehner & Rachel Marshall clean 55:02
Prosperity Economcis Principles, with Kim D.H. Butler – TMA 012 https://themoneyadvantage.com/prosperity-economics-principles-kim-butler/ Mon, 29 Jan 2018 10:00:55 +0000 https://themoneyadvantage.com/?p=1188 Kim Butler is a champion of Prosperity Economics principles who's bringing them back into the mainstream.  She’s revitalizing the traditional way of thinking, condensing age-old wealth principles into the 7 Principles of Prosperity.  She helps people get their money doing more jobs and building wealth outside of Wall Street. She’s the owner of Partners 4 Prosperity, a Registered Investment Advisory firm dedicated to the Prosperity Economics Principles. Additionally, Kim serves as the co-host of the Prosperity Podcast and a best-selling author of 6 books, including Live Your Life Insurance and Busting the Retirement Lies. She’s recommended by financial thought leaders like Robert Kiyosaki and has been listed in Investopedia’s top 100 most influential financial advisors in 2017. She’s been a tremendous influence on the philosophy and work of The Money Advantage, and we have the utmost respect for her. In this interview, we discuss her backstory.  You’ll see how she developed her financial wisdom and how her abundance mindset is allowing her to continue her objective to help as many people as possible in as many ways as possible.   Here are the highlights: Before Kim Started Partners 4 Prosperity [3:30] Kim was a “typical” financial planner, with a Series 6 and 7 licenses to sell stocks, bonds, and mutual funds.  She made her living creating and delivering financial plans. When she became aware of the assumptions that made the plans unreliable the moment they were printed, she became disenfranchised with typical financial planning.  She felt she was subjecting clients’ money to so much risk. The Assumptions of Typical Financial Planning [5:25] The client is responsible to project when they’ll want to retire, what exactly they would want to happen if they had died yesterday, what interest rate they expect to achieve, and what inflation rate they presume. Because the foundation for the plans is complete guesswork, the plans have failed people as the roadmap they were intended to be. An Entrepreneurial Journey That Started in 4th Grade [6:53] When Kim was in 4th grade, her parents gifted her the raw materials for a business. They gave her a milk cow and taught her how to milk by hand.  She sold milk to friends and neighbors, earning an income.  She had to keep track of her finances, manage expenses, collect payment, and pay taxes. Giving up a Designation to Provide More Guarantees and Certainty [10:00] Kim had earned and held the Certified Financial Planner (CFP) designation.  To maintain her designation, Kim kept up with her continuing education.  Time and time again, she found incorrect assumptions that she could no longer subscribe to.  The questions and answers were simply incorrect. She realized that the designation didn’t have weight or meaning for clients.  If she had a designation at all, she wanted it to be about her clients, not about what test she had passed. She gave up the CFP designation to maintain the integrity of her convictions and be able to provide clients with more guarantees and certainty. Better Than Typical Financial Planning [11:50] Prosperity Economics was developed based on historical principles you find in the Bible and books like The Richest Man in Babylon.  It is basic economic theory and principles used in the corporate world, brought down to a personal level. The 7 Prosperity Economics Principles [13:15] Here are the seven Prosperity Economics principles that can be used as a guide to all financial decision-making: Think from a prosperous mindset See the big picture Measure opportunity cost Flow – create cash flow, into our life and out into savings Control – don’t give up control (in assets like the TSP, 401(k), 403(b), and IRA) Move – get dollars to move through assets instead of to assets Multiply – if we can move through assets, we can multiply their effectiveness and benefits, often called “velocity of money” Kim Butler is a champion of Prosperity Economics principles who's bringing them back into the mainstream.  She’s revitalizing the traditional way of thinking, condensing age-old wealth principles into the 7 Principles of Prosperity.

She’s the owner of Partners 4 Prosperity, a Registered Investment Advisory firm dedicated to the Prosperity Economics Principles.

Additionally, Kim serves as the co-host of the Prosperity Podcast and a best-selling author of 6 books, including Live Your Life Insurance and Busting the Retirement Lies.

She’s recommended by financial thought leaders like Robert Kiyosaki and has been listed in Investopedia’s top 100 most influential financial advisors in 2017.

She’s been a tremendous influence on the philosophy and work of The Money Advantage, and we have the utmost respect for her.

In this interview, we discuss her backstory.  You’ll see how she developed her financial wisdom and how her abundance mindset is allowing her to continue her objective to help as many people as possible in as many ways as possible.

 



Here are the highlights:
Before Kim Started Partners 4 Prosperity
[3:30] Kim was a “typical” financial planner, with a Series 6 and 7 licenses to sell stocks, bonds, and mutual funds.  She made her living creating and delivering financial plans.

When she became aware of the assumptions that made the plans unreliable the moment they were printed, she became disenfranchised with typical financial planning.  She felt she was subjecting clients’ money to so much risk.
The Assumptions of Typical Financial Planning
[5:25] The client is responsible to project when they’ll want to retire, what exactly they would want to happen if they had died yesterday, what interest rate they expect to achieve, and what inflation rate they presume.

Because the foundation for the plans is complete guesswork, the plans have failed people as the roadmap they were intended to be.
An Entrepreneurial Journey That Started in 4th Grade
[6:53] When Kim was in 4th grade, her parents gifted her the raw materials for a business.

They gave her a milk cow and taught her how to milk by hand.  She sold milk to friends and neighbors, earning an income.  She had to keep track of her finances, manage expenses, collect payment, and pay taxes.
Giving up a Designation to Provide More Guarantees and Certainty
[10:00] Kim had earned and held the Certified Financial Planner (CFP) designation.  To maintain her designation, Kim kept up with her continuing education.  Time and time again, she found incorrect assumptions that she could no longer subscribe to.  The questions and answers were simply incorrect.

She realized that the designation didn’t have weight or meaning for clients.  If she had a designation at all, she wanted it to be about her clients, not about what test she had passed.

She gave up the CFP designation to maintain the integrity of her convictions and be able to provide clients with more guarantees and certainty.
Better Than Typical Financial Planning
[11:50] Prosperity Economics was developed based on historical principles you find in the Bible and books like The Richest Man in Babylon.  It is basic economic theory and principles used in the corporate world, brought down to a personal level.]]>
Bruce Wehner & Rachel Marshall clean 50:22
Why the Wealthy Love Cash, Part 1 – TMA 011 https://themoneyadvantage.com/why-the-wealthy-love-cash-savings-part-1/ Mon, 22 Jan 2018 10:00:35 +0000 https://themoneyadvantage.com/?p=857 Have you ever had conflicting thoughts about cash savings?  You'd feel better with more savings, but you're not really sure it's a winning financial strategy. Savings is pure magic.  Within its seed is infinite and tremendous potential.  This article will help you see and unleash the power of savings to accomplish your financial goals. Savings is a value of the ultra-wealthy.  Having savings – liquid, accessible, safe cash – is critical and relevant, even in today’s economy, even with boring returns. But because the hard pull of the media, financial messaging, and what everyone else is doing points the opposite direction, saving often becomes snubbed and overlooked. Savings certainly doesn’t have the most electrifying connotation, I know. Because today's interest rates are at an all-time low, saving money seems wasteful.  It seems you’re putting your money out of commission, letting it just sit on the sidelines. In addition, financing is cheap and easy.  It quickly becomes a go-to source of capital when you don’t have cash of your own. To top it off, it seems like investments get higher returns than savings do, and that you’ll end up ahead if you invest instead. But, could this be only part of the story?   The Big Why of Savings: It Protects Your Mindset As we embark on this series about savings, we’ll walk through the reasons why having cash is so meaningful, from the perspective of the wealthy.  It becomes apparent that they’ve thought differently than everyone who’s currently tethered to “average” status.  It's enough to take notice. The wealthy know how to build financial wealth.  But they recognize that true wealth is a richness of mind, body, spirit, and relationships.  Their goal is a more fulfilling quality of life in every category of their life, today and in the future.  They meticulously attend to creating a life that supports that objective. Mental health tops the list.  With confidence and peace of mind, they're at their best.  They have the most creative, relaxed, confident version of themselves to bring to the table.  It allows them to use their unique abilities to create value and serve others. They go to great lengths to protect their mindset.  They value savings because it protects their peace of mind and gives them confidence for the future. With cash, they’re poised to take advantage of future opportunities, especially during a crisis. We’ll learn what they are doing as they prepare for the future, with an ear to the ground, listening to what is around the corner. Definition of Savings To make sure we’re on the same page before we dive in, let’s answer this question first:  What exactly is savings?  In order to really focus our discussion, it’s important to take a clear look at this first. What intrinsically makes savings, savings? Savings is an asset that's easily converted to usable cash, that's not at risk of losing value. In contrast, investing has the potential for returns, but also the potential for loss. What types of accounts would be classified as savings? This could be dollar bills in a coffee can buried in the backyard, money in the bank, CDs, money market accounts, or life insurance cash value you can access. The Litmus Test of Savings: Not Losing Value When we say savings doesn’t lose value, let’s talk about what value means. There’s two primary types of value: (1) account value, and (2) buying power. Account Value: Safe vs. Risk Account value is related to the dollar value of the account. Say your savings account has $100,000.  Tomorrow’s dollar value of that account will remain $100K, unless you put more money in, take some out, or receive growth due to interest.  The dollars will remain constant. Because the underlying assets of savings are safe, savings doesn’t lose account value.  You don’t have fluctuations in a savings account value up to $120K, down to $65K, and back up to $101K, Have you ever had conflicting thoughts about cash savings?  You'd feel better with more savings, but you're not really sure it's a winning financial strategy. - Savings is pure magic.  Within its seed is infinite and tremendous potential.
Savings is pure magic.  Within its seed is infinite and tremendous potential.  This article will help you see and unleash the power of savings to accomplish your financial goals.

Savings is a value of the ultra-wealthy.  Having savings – liquid, accessible, safe cash – is critical and relevant, even in today’s economy, even with boring returns.

But because the hard pull of the media, financial messaging, and what everyone else is doing points the opposite direction, saving often becomes snubbed and overlooked.

Savings certainly doesn’t have the most electrifying connotation, I know.

Because today's interest rates are at an all-time low, saving money seems wasteful.  It seems you’re putting your money out of commission, letting it just sit on the sidelines.

In addition, financing is cheap and easy.  It quickly becomes a go-to source of capital when you don’t have cash of your own.

To top it off, it seems like investments get higher returns than savings do, and that you’ll end up ahead if you invest instead.

But, could this be only part of the story?

 


The Big Why of Savings: It Protects Your Mindset
As we embark on this series about savings, we’ll walk through the reasons why having cash is so meaningful, from the perspective of the wealthy.  It becomes apparent that they’ve thought differently than everyone who’s currently tethered to “average” status.  It's enough to take notice.

The wealthy know how to build financial wealth.  But they recognize that true wealth is a richness of mind, body, spirit, and relationships.  Their goal is a more fulfilling quality of life in every category of their life, today and in the future.  They meticulously attend to creating a life that supports that objective.

Mental health tops the list.  With confidence and peace of mind, they're at their best.  They have the most creative, relaxed, confident version of themselves to bring to the table.  It allows them to use their unique abilities to create value and serve others.

They go to great lengths to protect their mindset.  They value savings because it protects their peace of mind and gives them confidence for the future.

With cash, they’re poised to take advantage of future opportunities, especially during a crisis.

We’ll learn what they are doing as they prepare for the future, with an ear to the ground, listening to what is around the corner.
Definition of Savings
To make sure we’re on the same page before we dive in, let’s answer this question first:  What exactly is savings?  In order to really focus our discussion, it’s important to take a clear look at this first.

What intrinsically makes savings, savings?
Savings is an asset that's easily converted to usable cash, that's not at risk of losing value.
In contrast, investing has the potential for returns, but also the potential for loss.

What types of accounts would be classified as savings?

This could be dollar bills in a coffee can buried in the backyard, money in the bank, CDs, money market accounts, or life insurance cash value you can access.
The Litmus Test of Savings: Not Losing Value
When we say savings doesn’t lose value, let’s talk about what value means.

There’s two primary types of value: (1) account value, and (2) buying power.
Account Value: Safe vs. Risk
Account value is related to the dollar value of the account.

Say your savings account has $100,000.]]>
Bruce Wehner & Rachel Marshall clean 54:33
How to Pay Less in Taxes Legally, with Dustin Griffiths – TMA 010 https://themoneyadvantage.com/pay-less-taxes-legally-dustin-griffiths/ Mon, 15 Jan 2018 10:00:14 +0000 https://themoneyadvantage.com/?p=1554 “Tax Empowered” vs. “Tax Scared” It’s time to stop tipping the IRS and pay less in taxes legally, from now on. No one likes paying the IRS, but are you letting the government steal from you?  If you aren’t strategic, tax deadlines can feel like doomsday.  You’re stuck with hating that you pay so much in taxes or fearing you’re doing something wrong. But, there’s no need for the word “taxes” to have you tucking your tail and running for the hills. While the IRS is not your friend, the tax code can be.  But it requires you to understand and apply the rules in your favor. If you don't want to pour through and interpret the IRS regulations on your own, you're not alone.  The tax code is a bunch of legalese and linguistic judo. You need someone in your corner who wants you to pay less in taxes, legally. A tax strategist can help you navigate the law with grace and efficiency.  They embrace the tax code as a roadmap for reducing your taxes.  And they're willing to stand up to the IRS on your behalf, helping you leverage the tax code.  This helps you make strategic decisions that keep more dollars in your pocket. Then, taxes seem less like a monster and more like an obstacle course to master. Dustin Griffiths, at Incite Tax and Accounting, is one such tax strategist.  He believes that you are the best person to steward your resources, not the federal government.   Paying Less in Taxes Is Critical to Your Wealth Strategy Maximizing your cash flow and control of resources is one of the top priorities at The Money Advantage. Our expectation with tax planning is to be proactive and aggressively capture as many possible tax dollars that could be used in your own personal economy. Tax decisions aren’t isolated choices in a vacuum.  Every dollar you keep, instead of paying to Uncle Sam, is another dollar you can steward and use productively in your life. Instead of feeling powerless, we want to equip you with the knowledge and education to pay less in taxes legally. Legally Rigging the Tax Game in Your Favor There is a line separating what is legal and what is not.  Often, out fear and lack of understanding the tax code, many other tax professionals stay far away from the line. Dustin and the Incite team confidently walk right up to the line.  If it’s in the tax code, they will use it for your benefit. They aggressively find and apply the tax law to make sure you keep as much of your money as possible, this year and every year going forward.  In this way, they maximize your cash flow now and in the future, helping you keep more money in your control. They view taxes as an integral part of an overall wealth strategy and make it their mission to help you keep and control more of your money. Corporate Rent: One Strategy Most CPAs Miss One of the simple strategies almost all business owners can use, but most people are unaware of, could easily save them $3 - $5K in taxes. Rental income for personal property rented more than 15 days out of the year is taxable as income.  Anything under the 15-day threshold is non-taxable. When you use your personal living space for business use for up to 14 days out of the year, such as for monthly board meetings, the business pays rental income to you.  The business gets a tax-deductible business expense called corporate rent, and the owner gets tax-free income. Clarity on Other Deductions As you go about your business activities, many of your associated expenses can be treated as tax deductions on your business income, saving money and increasing profits. Dustin provides insight and education on how to think through travel expenses, your cell phone, and internet expense, the two options for deducting your vehicle expenses, and health insurance, as a few common business deductions. The Rest of the Conversation on How to Pay Less in Taxes The rest of the conversation was full of tools and ideas that you may find useful in your own business. “Tax Empowered” vs. “Tax Scared” It’s time to stop tipping the IRS and pay less in taxes legally, from now on. - No one likes paying the IRS, but are you letting the government steal from you?  If you aren’t strategic, It’s time to stop tipping the IRS and pay less in taxes legally, from now on.

No one likes paying the IRS, but are you letting the government steal from you?  If you aren’t strategic, tax deadlines can feel like doomsday.  You’re stuck with hating that you pay so much in taxes or fearing you’re doing something wrong.

But, there’s no need for the word “taxes” to have you tucking your tail and running for the hills.

While the IRS is not your friend, the tax code can be.  But it requires you to understand and apply the rules in your favor.

If you don't want to pour through and interpret the IRS regulations on your own, you're not alone.  The tax code is a bunch of legalese and linguistic judo.

You need someone in your corner who wants you to pay less in taxes, legally.

A tax strategist can help you navigate the law with grace and efficiency.  They embrace the tax code as a roadmap for reducing your taxes.  And they're willing to stand up to the IRS on your behalf, helping you leverage the tax code.  This helps you make strategic decisions that keep more dollars in your pocket.

Then, taxes seem less like a monster and more like an obstacle course to master.

Dustin Griffiths, at Incite Tax and Accounting, is one such tax strategist.  He believes that you are the best person to steward your resources, not the federal government.

 


Paying Less in Taxes Is Critical to Your Wealth Strategy
Maximizing your cash flow and control of resources is one of the top priorities at The Money Advantage.

Our expectation with tax planning is to be proactive and aggressively capture as many possible tax dollars that could be used in your own personal economy.

Tax decisions aren’t isolated choices in a vacuum.  Every dollar you keep, instead of paying to Uncle Sam, is another dollar you can steward and use productively in your life.

Instead of feeling powerless, we want to equip you with the knowledge and education to pay less in taxes legally.
Legally Rigging the Tax Game in Your Favor
There is a line separating what is legal and what is not.  Often, out fear and lack of understanding the tax code, many other tax professionals stay far away from the line.

Dustin and the Incite team confidently walk right up to the line.  If it’s in the tax code, they will use it for your benefit.

They aggressively find and apply the tax law to make sure you keep as much of your money as possible, this year and every year going forward.  In this way, they maximize your cash flow now and in the future, helping you keep more money in your control.

They view taxes as an integral part of an overall wealth strategy and make it their mission to help you keep and control more of your money.
Corporate Rent: One Strategy Most CPAs Miss
One of the simple strategies almost all business owners can use, but most people are unaware of, could easily save them $3 - $5K in taxes.

Rental income for personal property rented more than 15 days out of the year is taxable as income.  Anything under the 15-day threshold is non-taxable.

When you use your personal living space for business use for up to 14 days out of the year, such as for monthly board meetings, the business pays rental income to you.  The business gets a tax-deductible business expense called corporate rent, and the owner gets tax-free income.
Clarity on Other Deductions
As you go about your business activities, many of your associated expenses can be treated as tax deductions on your business inc...]]>
Bruce Wehner & Rachel Marshall clean 47:45
Entrepreneurial Lessons from a Top Amazon Seller, with Tyler Douthitt – TMA 009 https://themoneyadvantage.com/entrepreneurial-lessons-top-amazon-seller-tyler-douthitt/ Mon, 08 Jan 2018 17:00:25 +0000 https://themoneyadvantage.com/?p=1186 Along the 12-year journey to becoming a top Amazon seller, Tyler Douthitt has accumulated a wealth of entrepreneurial wisdom.  It takes a considerable amount of grit, resilience, vision, and self-awareness to make it to the top 2%. In this interview, you’ll note: His abundance perspective to create a great life, not only for himself but also for others The importance of being responsive The value of taking the one next step We hope his story, his success, and his lessons will encourage you along your entrepreneurial journey.   Who Tyler Is Now Tyler Douthitt is a top Amazon seller, entrepreneur, lifelong businessman, and investor. He’s building a business as well as a personal brand.  His social media presence has over 10K followers on LinkedIn and Facebook each. He’s just launched a podcast titled the TD Project. He lives in Illinois with his wife and kids and runs his companies from his home office. How Honing a Niche Market Accelerated His Sales as a Top Amazon Seller Because Tyler worked in his parent’s business for 11 years, he gained experience with supply chains, and sourcing and selling products. He began selling earbuds as a result of cause and effect, continual learning and responding to the market. Each time he grew, the customers changed, along with those customer’s needs, and he had to stay responsive to innovate and continue to meet those needs differently. Sales exploded when he connected to the Amazon prime marketplace and moved from fulfilling individual orders to delivering bulk orders to his niche customer: schools. A Customer-Centric Business Model to Deliver More Value Than His Competitors He learned the supply chain in his industry and cut out the middleman, along with his commission. By doing so, he was able to provide better selection, better prices, and quicker delivery. Customized Direct Marketing Strategies Reach His Customer More Effectively Tyler attributes a significant majority of his success to targeted marketing strategies that reached his audience with information they want, where they want to receive it. Tyler noticed so many schools buying earbuds, so he inquired of his brother-in-law, an assistant principal, to determine who has the buying decision for these types of purchases. When he learned that the principal makes these decisions, and the best way to connect was to email them directly, he took action right away. Tyler began emailing school principals with his product and price and explained how his earbuds met their testing requirements. As that evolved, he started going to principal association conferences with his wife, building relationships face-to-face.  He showed how he could satisfy bulk orders at better prices, with more color options. The Greatest Lessons In looking back over what has fostered his success in becoming a top Amazon seller, Tyler says that it’s important to match your work ethic to your ambition. His daily vlog shows the honest side of his life. Having a business is like having a child.  There’s never a day I’m not a parent.  There’s never a day I’m not a business owner. Other Podcast Highlights: [6:45] How Tyler documents his daily routines to give transparency to an entrepreneur’s real life. [8:15] Perspective on balancing business and family life. [10:40] An inside look into the supply chain of buying, shipping, packing, and invoicing the earbuds. [16:20] A healthy perspective on sharing your business model and strategies that are not “teaching your competition.” [18:10] Hear the live result of an abundance mindset, and how it opened doors to exchange value with others. [18:55] How a top seller in a technologically-related industry continues to innovate into the future. [23:00] The difference between business owners and entrepreneurs. [24:00] Building entrepreneurial success that’s better than retirement. [27:50] The way to scale your business starts with ser... Along the 12-year journey to becoming a top Amazon seller, Tyler Douthitt has accumulated a wealth of entrepreneurial wisdom.  It takes a considerable amount of grit, resilience, vision, and self-awareness to make it to the top 2%. - Along the 12-year journey to becoming a top Amazon seller, Tyler Douthitt has accumulated a wealth of entrepreneurial wisdom.  It takes a considerable amount of grit, resilience, vision, and self-awareness to make it to the top 2%.

In this interview, you’ll note:

* His abundance perspective to create a great life, not only for himself but also for others
* The importance of being responsive
* The value of taking the one next step

We hope his story, his success, and his lessons will encourage you along your entrepreneurial journey.

 


Who Tyler Is Now
Tyler Douthitt is a top Amazon seller, entrepreneur, lifelong businessman, and investor.

He’s building a business as well as a personal brand.  His social media presence has over 10K followers on LinkedIn and Facebook each.

He’s just launched a podcast titled the TD Project.

He lives in Illinois with his wife and kids and runs his companies from his home office.
How Honing a Niche Market Accelerated His Sales as a Top Amazon Seller
Because Tyler worked in his parent’s business for 11 years, he gained experience with supply chains, and sourcing and selling products.

He began selling earbuds as a result of cause and effect, continual learning and responding to the market.

Each time he grew, the customers changed, along with those customer’s needs, and he had to stay responsive to innovate and continue to meet those needs differently.

Sales exploded when he connected to the Amazon prime marketplace and moved from fulfilling individual orders to delivering bulk orders to his niche customer: schools.
A Customer-Centric Business Model to Deliver More Value Than His Competitors
He learned the supply chain in his industry and cut out the middleman, along with his commission.

By doing so, he was able to provide better selection, better prices, and quicker delivery.
Customized Direct Marketing Strategies Reach His Customer More Effectively
Tyler attributes a significant majority of his success to targeted marketing strategies that reached his audience with information they want, where they want to receive it.

Tyler noticed so many schools buying earbuds, so he inquired of his brother-in-law, an assistant principal, to determine who has the buying decision for these types of purchases.

When he learned that the principal makes these decisions, and the best way to connect was to email them directly, he took action right away.

Tyler began emailing school principals with his product and price and explained how his earbuds met their testing requirements.

As that evolved, he started going to principal association conferences with his wife, building relationships face-to-face.  He showed how he could satisfy bulk orders at better prices, with more color options.
The Greatest Lessons
In looking back over what has fostered his success in becoming a top Amazon seller, Tyler says that it’s important to match your work ethic to your ambition.

His daily vlog shows the honest side of his life.
Having a business is like having a child.  There’s never a day I’m not a parent.  There’s never a day I’m not a business owner.
Other Podcast Highlights:

* [6:45] How Tyler documents his daily routines to give transparency to an entrepreneur’s real life.
* [8:15] Perspective on balancing business and family life.
* [10:40] An inside look into the supply chain of buying, shipping,]]>
Bruce Wehner & Rachel Marshall clean 47:51
What is Prosperity Economics? Part 2 – TMA 008 https://themoneyadvantage.com/financial-planning-what-is-prosperity-economics-part-2/ Mon, 01 Jan 2018 17:00:27 +0000 https://themoneyadvantage.com/?p=1183 Typical Financial Planning vs. Prosperity Economics The Prosperity Economics Movement is a wholesome and positive remedy to the limitations, guesses, and fear-based typical financial planning. On the one hand, the typical financial conversation holds an underlying opinion that you should give your money to someone else more qualified than you, put it aside for the future, not touch it or use it now, and hope things work out. On the other hand, the abundance-centric, value-creating, opportunity-seeking perspective of Prosperity Economics puts money in your hands today.  It validates that you’re the best person to be in control.  Prosperity Economics relentlessly steers towards financial freedom by prioritizing cash flow over accumulation. Refreshingly, it empowers you, the individual, with maximum control and certainty. The prosperity perspective is a departure from the status quo of today and a return to the traditional way of thinking about and handling money.  Similar to how people built wealth before the 1980’s, it encourages you to rely on your own business and put money in tools you know and control like savings accounts, whole life insurance policies, cash-flowing investments, and precious metals.   How’s Your Thinking? Whether or not you’ve ever considered your way of thinking about money, you owe it to yourself to pause for a moment of reflection.  Have you fostered your awareness of what you are allowing to influence your financial beliefs and perspectives? We aim to help you develop clarity on your financial foundations and philosophy. If your current mindset is not helping you create your ideal life, we give you the permission to think differently. This article, in conjunction with Part 1, provides the basis for understanding the principles and beliefs guiding the typical money conversation and those behind the prosperity conversation. In Part 1 In What Is Prosperity Economics? – Part 1, we Dissected the false assumptions that are the foundation of typical financial planning Illuminated why financial planning has failed Outlined the four fundamental differences between the typical and the time-tested traditional financial paradigms Discussed the first eight of the twelve comparisons between financial planning and Prosperity Economics: Meeting needs and goals only vs. pursuing wants and dreams Minimizing requirements vs. optimizing opportunities Product-oriented vs. strategy-oriented Rate-of-return emphasis vs. focus on recovering opportunity cost Institutions control your money vs. you control your money Focus on your portfolio vs. focus on your whole personal economy Net worth measurement vs. cash flow measurement Retirement focus vs. freedom oriented In Part 2 In today’s article, we’ll highlight the last four of the twelve differentiators. 1) Living Only on Interest vs. Spending and Replacing Principal With the typical financial conversation, the ambition is to build a nest egg large enough to live on interest in retirement without depleting the principal. You used to be able to withdraw 5%, and the growth of your account would keep up with that, so you didn’t shrink your nest egg. In today’s environment, the going distribution rate is about 2.8%.  That means that if you take distributions higher than 2.8%, you’re likely to be taking out more than your account growth and shrinking your nest egg. The remedy would be to either accumulate a nest egg double in size or feel comfortable living on half the income during retirement. Because many of the assumptions beneath the financial equations are outside your control, you may end up with a plan that gives you, say, a 93% chance of still having money left at age 86. How’s that for confidence? What if you lived longer? Most people I know would rather have a 100% chance of success that gives them the confidence that their long life won’t become a liability. Typical Financial Planning vs. Prosperity Economics The Prosperity Economics Movement is a wholesome and positive remedy to the limitations, guesses, and fear-based typical financial planning. - On the one hand, The Prosperity Economics Movement is a wholesome and positive remedy to the limitations, guesses, and fear-based typical financial planning.

On the one hand, the typical financial conversation holds an underlying opinion that you should give your money to someone else more qualified than you, put it aside for the future, not touch it or use it now, and hope things work out.

On the other hand, the abundance-centric, value-creating, opportunity-seeking perspective of Prosperity Economics puts money in your hands today.  It validates that you’re the best person to be in control.  Prosperity Economics relentlessly steers towards financial freedom by prioritizing cash flow over accumulation.

Refreshingly, it empowers you, the individual, with maximum control and certainty.

The prosperity perspective is a departure from the status quo of today and a return to the traditional way of thinking about and handling money.  Similar to how people built wealth before the 1980’s, it encourages you to rely on your own business and put money in tools you know and control like savings accounts, whole life insurance policies, cash-flowing investments, and precious metals.

 


How’s Your Thinking?
Whether or not you’ve ever considered your way of thinking about money, you owe it to yourself to pause for a moment of reflection.  Have you fostered your awareness of what you are allowing to influence your financial beliefs and perspectives?

We aim to help you develop clarity on your financial foundations and philosophy.

If your current mindset is not helping you create your ideal life, we give you the permission to think differently.

This article, in conjunction with Part 1, provides the basis for understanding the principles and beliefs guiding the typical money conversation and those behind the prosperity conversation.
In Part 1
In What Is Prosperity Economics? – Part 1, we

* Dissected the false assumptions that are the foundation of typical financial planning
* Illuminated why financial planning has failed
* Outlined the four fundamental differences between the typical and the time-tested traditional financial paradigms
* Discussed the first eight of the twelve comparisons between financial planning and Prosperity Economics:

* Meeting needs and goals only vs. pursuing wants and dreams
* Minimizing requirements vs. optimizing opportunities
* Product-oriented vs. strategy-oriented
* Rate-of-return emphasis vs. focus on recovering opportunity cost
* Institutions control your money vs. you control your money
* Focus on your portfolio vs. focus on your whole personal economy
* Net worth measurement vs. cash flow measurement
* Retirement focus vs. freedom oriented



In Part 2
In today’s article, we’ll highlight the last four of the twelve differentiators.
1) Living Only on Interest vs. Spending and Replacing Principal
With the typical financial conversation, the ambition is to build a nest egg large enough to live on ...]]>
Bruce Wehner & Rachel Marshall clean 38:23
Maximizing Your Business Tax Deductions in 2018, with Mark Schreiber – TMA 007 https://themoneyadvantage.com/maximizing-business-tax-deductions-mark-schreiber/ Mon, 25 Dec 2017 17:00:39 +0000 https://themoneyadvantage.com/?p=1432 Do you know if you’re maximizing your business tax deductions?  If the thought of the new year brings you tax anxiety, you’re not alone. Many business owners fear tax season and the “day of reckoning” when they find out how much they owe to Uncle Sam. No one likes to part with hard-earned dollars or wonder whether they may have overpaid. To make matters worse, taxes seem like an endless maze of confusion.  Blindly trusting a professional and hoping they’re doing everything in your best interest is a sure-fire way to feel disempowered and out of control. In our work with business owners, one question rises to the forefront of all financial strategy – how do I pay less in taxes? Overpaying taxes is one of the most impactful money leaks we see for business owners because their money is flowing out of their control. Instead, we’re leaning into that dysphoria. We believe that education empowers you with the confidence to take action and make better decisions.   Plan for Your Best Tax Year Yet 2018 is a brand-new year. Instead of taxes being something that makes you cringe, we want to empower you with a mindset, tips, knowledge, and strategy to help you keep more of your money by leveraging the tax code and maximizing your tax deductions. In this interview with Mark Schreiber, CPA and Tax Strategist with e3 Wealth, we discuss the best way to start 2018 prepared to make it your best year for tax savings. Mark’s Background Mark has worked in public accounting for 35 years. In his work with small businesses and entrepreneurs, he focuses on doing taxes, tax planning, and estate tax planning.  He’s been with one of the “large eight” CPA firms and joined e3 2 years ago. Interview Highlights: A lot of Tax Planning is Reactive: At the end of the year, you hand over your books, your CPA crunches the numbers and gives you a tax return.  It’s not often proactive, forward-looking tax planning that takes into consideration your specific business and plans with an objective to minimize taxes this year and every year going forward. Tax Deferrals, Deductions, and Credits: Tax deferrals reduce taxable income this year by postponing a portion of income to pay tax in the future instead.  On the other hand, tax deductions reduce taxable income this year, and never come back to be taxed again.  Tax credits shrink your tax bill dollar-for-dollar. How to Save 15.3% on Your Taxes With 1 Strategy: Many self-employed people are Sole Proprietors.  They file a Schedule C and pay ordinary tax, PLUS 7.65% for the employee portion of FICA and Medicare, PLUS another 7.65% for the employer portion of FICA and Medicare.  This additional 15.3% is referred to as the self-employment tax, and business owners pay it on top of regular income tax.   A business entity taxed as an S Corp has a way to minimize the self-employment tax.  After paying a reasonable salary to the business owner at the full self-employment tax rate, the business can distribute the rest of the income to the business owner as Distributions, on the Schedule K1.  The K1 bypasses the 15.3% rate, shrinking your total taxes owed. Additional Business Tax Deductions Discussed: Business expenses reduce your taxable income. There’s great variation in how business expenses are classified and accounted for. There are many business tax deductions that business owners could take but don’t.  Here are just a few: Home office deduction Vehicle or mileage expense deduction Cell phone Internet Meals and entertainment Travel Self-employed Health Insurance Deduction Hiring your kids Depreciation Cost segregation study for any owner of real estate Charitable contributions through deconstruction or easements Highlights in the pending tax reform To Take the Next Step If you have questions about your taxes or the business tax deductions you can leverage, Do you know if you’re maximizing your business tax deductions?  If the thought of the new year brings you tax anxiety, you’re not alone. - Many business owners fear tax season and the “day of reckoning” when they find out how much they owe to Uncle Sa...
Many business owners fear tax season and the “day of reckoning” when they find out how much they owe to Uncle Sam.

No one likes to part with hard-earned dollars or wonder whether they may have overpaid.

To make matters worse, taxes seem like an endless maze of confusion.  Blindly trusting a professional and hoping they’re doing everything in your best interest is a sure-fire way to feel disempowered and out of control.

In our work with business owners, one question rises to the forefront of all financial strategy – how do I pay less in taxes?

Overpaying taxes is one of the most impactful money leaks we see for business owners because their money is flowing out of their control.

Instead, we’re leaning into that dysphoria.

We believe that education empowers you with the confidence to take action and make better decisions.

 


Plan for Your Best Tax Year Yet
2018 is a brand-new year.

Instead of taxes being something that makes you cringe, we want to empower you with a mindset, tips, knowledge, and strategy to help you keep more of your money by leveraging the tax code and maximizing your tax deductions.

In this interview with Mark Schreiber, CPA and Tax Strategist with e3 Wealth, we discuss the best way to start 2018 prepared to make it your best year for tax savings.
Mark’s Background
Mark has worked in public accounting for 35 years.

In his work with small businesses and entrepreneurs, he focuses on doing taxes, tax planning, and estate tax planning.  He’s been with one of the “large eight” CPA firms and joined e3 2 years ago.
Interview Highlights:

* A lot of Tax Planning is Reactive:

* At the end of the year, you hand over your books, your CPA crunches the numbers and gives you a tax return.  It’s not often proactive, forward-looking tax planning that takes into consideration your specific business and plans with an objective to minimize taxes this year and every year going forward.




* Tax Deferrals, Deductions, and Credits:

* Tax deferrals reduce taxable income this year by postponing a portion of income to pay tax in the future instead.  On the other hand, tax deductions reduce taxable income this year, and never come back to be taxed again.  Tax credits shrink your tax bill dollar-for-dollar.




* How to Save 15.3% on Your Taxes With 1 Strategy:

* Many self-employed people are Sole Proprietors.  They file a Schedule C and pay ordinary tax, PLUS 7.65% for the employee portion of FICA and Medicare, PLUS another 7.65% for the employer portion of FICA and Medicare.  This additional 15.3% is referred to as the self-employment tax, and business owners pay it on top of regular income tax.   A business entity taxed as an S Corp has a way to minimize the self-employment tax.  After paying a reasonable salary to the business owner at the full self-employment tax rate, the business can distribute the rest of the income to the business owner as Distributions, on the Schedule K1.  The K1 bypasses the 15.3% rate, shrinking your total taxes owed.



Additional Business Tax Deductions Discussed:

* Business expenses reduce your taxable income. There’s great variation in how business expenses are classified and accounted for. There are many business tax deductions that business owners could take but don’t.  Here are just a few:

]]>
Bruce Wehner & Rachel Marshall clean 42:24
What is Prosperity Economics? Part 1 – TMA 006 https://themoneyadvantage.com/what-is-prosperity-economics-part-1/ Mon, 18 Dec 2017 04:01:50 +0000 https://themoneyadvantage.com/?p=1181 Prosperity Economics has begun its renaissance as an alternative to typical financial planning.  An increasing number of courageous, conscious, independent thinkers have outgrown typical financial planning. They resonate with a different financial philosophy that provides more control, certainty, and permission to use their money now. For them, the financial status quo has been losing its luster. Its unfulfilled promises and failure to produce economic security have grown increasingly apparent.     Typical Financial Planning Is Planning to Fail All around, you notice people who have socked away money in retirement plans who are unable to retire.  They’re working longer because they have to, giving up on the lifestyle they’d hoped for, or fearing running out of money. You’re told it’s their fault because they haven’t saved enough. But even the most diligent and disciplined savers have had wealth indiscriminately erased by the fickle tide of the market. It seems impossible to get ahead, much less to win the financial game. The incongruences are shocking.  Many tried to ignore it, but you couldn't.  No matter what you do, it seems like you’re swimming against the tide in a system that’s rigged against you. If you put less away for the future, you end up not having enough in the future. If you put more away for the future, you end up more worried about losing what you’ve built because of uncertainty and the risk of loss. Unsettled About Unanswered Questions You have many looming questions about what you've heard from the media, Wall Street, and the financial planning industry. You’re not content with feeling out of control.  You don't like closing your eyes and hanging on for the ride, hoping for the best.  You want guarantees and certainty that put you in the driver's seat of your life and destiny. Isn't that why you started a business in the first place?  To create your future and take the bull by the horns?  The Unstable Premises of Typical Financial Planning, Demystified There’s valid reason for you to feel unsettled.  Your hunch about the status quo is right: it is failing the American population. The underlying assumptions of typical financial planning don’t fit your worldview or your life goals. Here’s why: Typical Assumption #1: You desire to feel great about your money means you want a plan for retirement. Typical financial advice today is usually synonymous with retirement planning.  Its aim is to plan for your future.  Planning for the most robust present isn’t within its scope. Typical Assumption #2: You can create a plan that will work, based on guesses about the future. The starting point of the conversation is: When do you want to retire? How much can you save or invest? How long do you expect to live? What do you expect inflation to be over time? What is your risk tolerance? How much money do you need in retirement? No one can legitimately know the answers to these questions. Instead of looking dumb, we make guesses that are nowhere near concrete answers.  They then become the foundation and framework of your financial plan. Typical Assumption #3: You have to take on risk to earn higher returns. We shrug off the discomfort with taking risk.  After all, we don’t want to lose any money.  We try to reassure ourselves that, just as we’ve been told, we have to take high risk to get high returns. What other areas of life would you take high risks?  If you took high risk with your significant relationships or your health, would you expect a positive outcome? Typical Assumption #4: You hate your job, and want to retire. It’s assumed that we work a job that drains us, and escaping the necessary evil of work is the peak of bliss and satisfaction. Typical Assumption #5: You are not smart enough to handle your own money. It’s assumed that you are not capable of making decisions with good financial sense and that growing wealth is a... Prosperity Economics has begun its renaissance as an alternative to typical financial planning.  An increasing number of courageous, conscious, independent thinkers have outgrown typical financial planning. -

Prosperity Economics has begun its renaissance as an alternative to typical financial planning.  An increasing number of courageous, conscious, independent thinkers have outgrown typical financial planning.

They resonate with a different financial philosophy that provides more control, certainty, and permission to use their money now.

For them, the financial status quo has been losing its luster.

Its unfulfilled promises and failure to produce economic security have grown increasingly apparent.

 



 
Typical Financial Planning Is Planning to Fail
All around, you notice people who have socked away money in retirement plans who are unable to retire.  They’re working longer because they have to, giving up on the lifestyle they’d hoped for, or fearing running out of money.

You’re told it’s their fault because they haven’t saved enough.

But even the most diligent and disciplined savers have had wealth indiscriminately erased by the fickle tide of the market.

It seems impossible to get ahead, much less to win the financial game.

The incongruences are shocking.  Many tried to ignore it, but you couldn't.  No matter what you do, it seems like you’re swimming against the tide in a system that’s rigged against you.

If you put less away for the future, you end up not having enough in the future.

If you put more away for the future, you end up more worried about losing what you’ve built because of uncertainty and the risk of loss.
Unsettled About Unanswered Questions
You have many looming questions about what you've heard from the media, Wall Street, and the financial planning industry.

You’re not content with feeling out of control.  You don't like closing your eyes and hanging on for the ride, hoping for the best.  You want guarantees and certainty that put you in the driver's seat of your life and destiny.

Isn't that why you started a business in the first place?  To create your future and take the bull by the horns? 
The Unstable Premises of Typical Financial Planning, Demystified
There’s valid reason for you to feel unsettled.  Your hunch about the status quo is right: it is failing the American population.

The underlying assumptions of typical financial planning don’t fit your worldview or your life goals.

Here’s why:
Typical Assumption #1: You desire to feel great about your money means you want a plan for retirement.
Typical financial advice today is usually synonymous with retirement planning.  Its aim is to plan for your future.  Planning for the most robust present isn’t within its scope.
Typical Assumption #2: You can create a plan that will work, based on guesses about the future.
The starting point of the conversation is:

* When do you want to retire?
* How much can you save or invest?
* How long do you expect to live?
* What do you expect inflation to be over time?
* What is your risk tolerance?
* How much money do you need in retirement?

No one can legitimately know the answers to these questions.

Instead of looking dumb, we make guesses that are nowhere near concrete answers.  They then become the foundation and framework of your financial plan.
Typical Assumption #3: You have to take on risk to earn higher returns.
We shrug off the discomfort with taking risk.  After all, we don’t want to lose any money.  We try to reassure ourselves that,]]>
Bruce Wehner & Rachel Marshall clean 57:07
Infinite Banking: Increasing Capital and Cashflow, with Dr. Robert P. Murphy – TMA 005 https://themoneyadvantage.com/infinite-banking-cashflow-robert-murphy/ Mon, 11 Dec 2017 17:00:51 +0000 https://themoneyadvantage.com/?p=1179  Infinite Banking is the perfect savings system for entrepreneurs.  It allows you to emulate the most powerful business model in the world: The Bank! Bob Murphy discusses out-of-the-box strategies that complement the entrepreneur.  He is an economist in an unconventional wrapper. His sense of humor and straight-talk help him convey the most perplexing concepts with elegance and simplicity we can all understand. He’s a free market thinker with the courage to be contrarian. He goes against the grain of the financial and economic status quo that marginalizes entrepreneurs and disregards their primary needs.  Instead, he salutes the nobility of entrepreneurship.  He gives clear-cut guidance on how to fortify their financial footing with cash flow and control of capital.     Credentials That Have Earned Him Wide Respect   Robert P. Murphy is a Research Assistant Professor with the Free Market Institute at Texas Tech University. Along with Tom Woods, he is co-host of the popular podcast “Contra Krugman.” Murphy has a Ph.D. in economics from New York University. He is also Senior Economist with the Institute for Energy Research, Senior Fellow with the Fraser Institute, Senior Fellow at the Mises Institute, and Research Fellow with the Independent Institute. He’s a prolific author and speaker on Austrian economics. Murphy has testified before Congress on energy markets and monetary policy and has given numerous interviews on TV and radio. He is the author of hundreds of articles and several books on economic topics created for the layperson. He publishes (with Carlos Lara) the Lara-Murphy Report, and is co-creator of the IBC Practitioner Program. He’s a member of the board at the Nelson Nash Institute. His works have been published in: The Austrian Mises Daily Article The Journal of Libertarian Studies Quarterly Journal of Austrian Economics Mises Review The Free Market Review of Austrian Economics Speeches and Presentations The Interview Highlights The Human Element That Makes Economics Unpredictable Bob makes economics simple and relevant to everyday people making everyday life decisions. While mainstream economics is often confusing, he gives people the tools to understand the world around them and make decisions. Bob starts by casting off a general assumption that economics is fundamentally math.  He brings the human element front and center, writing in his book, Lessons for the Young Economist. “Economics always involves the operation of at least one mind, intelligence that has conscious goals and takes steps to influence the material world in order to achieve those goals.” ~ Bob Murphy Economics has individual actors that you can’t put into a mathematical model.  They aren’t going to consistently do the same thing, like in a science lab.  He says: “Economists face two huge problems: the objects of their study have minds of their own, and it’s much harder to perform a controlled experiment in economics than it is in natural science.” ~ Bob Murphy If you attempt to treat the social sciences like the physical sciences, it gives a false concept of precision.  People are much more complicated than atoms and molecules. Real-world economics has to account for an unknown future, and best equip us to flourish in any environment. Austrian Economics Celebrates the Entrepreneur Entrepreneurs, of all people, have an unquenchable thirst to control their future.  They, also more than most, recognize that the world is continually evolving, and value keeping themselves agile to innovate and improve continuously. Because of this, they value making decisions today that expand their options tomorrow. They build businesses by continually honing their perspective, their understanding of the problems, and their skillset to solve it. Entrepreneurs long for environments that support and celebrate their creative spirit.  Infinite Banking is the perfect savings system for entrepreneurs.  It allows you to emulate the most powerful business model in the world: The Bank! - Bob Murphy discusses out-of-the-box strategies that complement the entrepreneur. Infinite Banking is the perfect savings system for entrepreneurs.  It allows you to emulate the most powerful business model in the world: The Bank!

Bob Murphy discusses out-of-the-box strategies that complement the entrepreneur.  He is an economist in an unconventional wrapper. His sense of humor and straight-talk help him convey the most perplexing concepts with elegance and simplicity we can all understand. He’s a free market thinker with the courage to be contrarian.

He goes against the grain of the financial and economic status quo that marginalizes entrepreneurs and disregards their primary needs.  Instead, he salutes the nobility of entrepreneurship.  He gives clear-cut guidance on how to fortify their financial footing with cash flow and control of capital.

 



 
Credentials That Have Earned Him Wide Respect  
Robert P. Murphy is a Research Assistant Professor with the Free Market Institute at Texas Tech University. Along with Tom Woods, he is co-host of the popular podcast “Contra Krugman.”

Murphy has a Ph.D. in economics from New York University. He is also Senior Economist with the Institute for Energy Research, Senior Fellow with the Fraser Institute, Senior Fellow at the Mises Institute, and Research Fellow with the Independent Institute.

He’s a prolific author and speaker on Austrian economics.

Murphy has testified before Congress on energy markets and monetary policy and has given numerous interviews on TV and radio. He is the author of hundreds of articles and several books on economic topics created for the layperson.

He publishes (with Carlos Lara) the Lara-Murphy Report, and is co-creator of the IBC Practitioner Program.

He’s a member of the board at the Nelson Nash Institute.

His works have been published in:

* The Austrian
* Mises Daily Article
* The Journal of Libertarian Studies
* Quarterly Journal of Austrian Economics
* Mises Review
* The Free Market
* Review of Austrian Economics
* Speeches and Presentations

The Interview Highlights
The Human Element That Makes Economics Unpredictable
Bob makes economics simple and relevant to everyday people making everyday life decisions.

While mainstream economics is often confusing, he gives people the tools to understand the world around them and make decisions.

Bob starts by casting off a general assumption that economics is fundamentally math.  He brings the human element front and center, writing in his book, Lessons for the Young Economist.
“Economics always involves the operation of at least one mind, intelligence that has conscious goals and takes steps to influence the material world in order to achieve those goals.” ~ Bob Murphy
Economics has individual actors that you can’t put into a mathematical model.  They aren’t going to consistently do the same thing, like in a science lab.  He says:
“Economists face two huge problems: the objects of their study have minds of their own, and it’s much harder to perform a controlled experiment in economics than it is in natural science.” ~ Bob Murphy
If you attempt to treat the social sciences like the physical sciences, it gives a false concept of precision.  People are much more complicated than atoms and molecules.]]>
Bruce Wehner & Rachel Marshall clean 51:30
Abundance: Philosophy, Principles and Beliefs – TMA 004 https://themoneyadvantage.com/abundance-philosophy-principles-beliefs/ Tue, 05 Dec 2017 03:52:06 +0000 https://themoneyadvantage.com/?p=1043 Your financial life should have come with the instructions: "For best results, abundance thinking required!"  Your financial results are a direct product of your way of thinking about money.  While it's tempting to jump right into strategies and products and investments, you'll never outperform your mindset.  You are your greatest investment, therefore exponential results are created by an abundance mindset. In the famous Indian fable of the Blind Men and the Elephant, six blind men described an elephant from their perspective.  One said it was like a rope, and another said the elephant was like a tree.  A third said it was like a spear.  The fourth, a snake.  The fifth, a fan.  And finally, the sixth man said it was like a wall. Each man had touched a different part of the elephant, and his experience shaped his understanding. Their limited thinking is evident to us.  But all too often, we, just like each blind man, are unaware of our own finite mindset. Our mindset is intangible and tucked away out of sight, so it’s easy to think it doesn’t require your attention. You can be unaware of it, ignore it, pretend it’s something different, or choose it. Regardless of your level of consciousness around your mindset and beliefs, your mental programming is driving your life.   How We Learn If you want different results than you see today, it’s not enough to change your actions.  You need to expand your mindset. In the elephant story, each man was beholden to his perspective.  They each believed that their own experience was the full interpretation, and it led them to severe errors of judgment.  Not one was willing to learn from each other to broaden his understanding. When it comes to our understanding of the world, we’re each like the blind men. Of all of the available facts in the world, each of us knows some of them.  None of us know them all.  The limited set of facts we have and our interpretation of them form our unique map.  Of the 7 billion people in the world, all of them have a map, and none of them look like yours. This is your belief system.  Unless you're willing to expand your map, nothing new exists for you. When we come into a conversation with people who see differently, it's important to recognize that if we both had the same map, we'd think the same way. When we each defend our own interpretation of the facts, it leads to conflict. The only way you can learn something new is to be willing to step off of your map and onto someone else's. It's not about who's right, but about learning what else is possible. We Don’t Know Everything Here at The Money Advantage, we don't claim to be all-knowing gurus with all the answers. In our life and work, we've seen a specific way of thinking about money that produces the healthiest, most vibrant lives. We'd like to invite you into our understanding about money. What We Do Know is This Let's have a candid discussion about the foundational principles and beliefs that lead to a life of abundance and prosperity. We’re laying a foundation of prosperous thinking in your money decisions to empower you to live prosperously. We want to turn the tide of frustration, misinformation, and disillusionment that causes many people to feel that the best they can expect is to close their eyes, grit their teeth, hang on for the ride and hope everything works out.  Having no control and no certainty for the future is debilitating. It’s even more tragic that many believe that’s all the better it can get. Since money is so central to our well-being in every other area of our life, we owe it to ourselves to get this right. Your mindset determines not only how you see something, but whether you see it at all, and what you choose to do about it. Scarcity: Limiting Beliefs and Where They Come From Scarcity is a world with limits driven by fear, doubt, greed, and worry.  It's the belief system that wealth is the result of ... Your financial life should have come with the instructions: "For best results, abundance thinking required!"  Your financial results are a direct product of your way of thinking about money.  While it's tempting to jump right into strategies and produc...


In the famous Indian fable of the Blind Men and the Elephant, six blind men described an elephant from their perspective.  One said it was like a rope, and another said the elephant was like a tree.  A third said it was like a spear.  The fourth, a snake.  The fifth, a fan.  And finally, the sixth man said it was like a wall.

Each man had touched a different part of the elephant, and his experience shaped his understanding.

Their limited thinking is evident to us.  But all too often, we, just like each blind man, are unaware of our own finite mindset.

Our mindset is intangible and tucked away out of sight, so it’s easy to think it doesn’t require your attention.

You can be unaware of it, ignore it, pretend it’s something different, or choose it.

Regardless of your level of consciousness around your mindset and beliefs, your mental programming is driving your life.

 


How We Learn
If you want different results than you see today, it’s not enough to change your actions.  You need to expand your mindset.

In the elephant story, each man was beholden to his perspective.  They each believed that their own experience was the full interpretation, and it led them to severe errors of judgment.  Not one was willing to learn from each other to broaden his understanding.

When it comes to our understanding of the world, we’re each like the blind men.

Of all of the available facts in the world, each of us knows some of them.  None of us know them all.  The limited set of facts we have and our interpretation of them form our unique map.  Of the 7 billion people in the world, all of them have a map, and none of them look like yours.

This is your belief system.  Unless you're willing to expand your map, nothing new exists for you.

When we come into a conversation with people who see differently, it's important to recognize that if we both had the same map, we'd think the same way.

When we each defend our own interpretation of the facts, it leads to conflict.

The only way you can learn something new is to be willing to step off of your map and onto someone else's.

It's not about who's right, but about learning what else is possible.
We Don’t Know Everything
Here at The Money Advantage, we don't claim to be all-knowing gurus with all the answers.

In our life and work, we've seen a specific way of thinking about money that produces the healthiest, most vibrant lives.

We'd like to invite you into our understanding about money.
What We Do Know is This
Let's have a candid discussion about the foundational principles and beliefs that lead to a life of abundance and prosperity.

We’re laying a foundation of prosperous thinking in your money decisions to empower you to live prosperously.

We want to turn the tide of frustration, misinformation, and disillusionment that causes many people to feel that the best they can expect is to close their eyes, grit their teeth, hang on for the ride and hope everything works out.  Having no control and no certainty for the future is debilitating.

It’s even more tragic that many believe that’s all the bett...]]>
Bruce Wehner & Rachel Marshall clean 50:15
Just Take Action – TMA 003 https://themoneyadvantage.com/just-take-action/ Thu, 09 Nov 2017 04:59:05 +0000 https://themoneyadvantage.com/?p=994 With naivety that makes me laugh now, after having my first child, I thought I'd have so much free time, why not start a business? As much courage as it takes to tell one’s story, it’s also tremendously freeing and empowering. I heard it said that the most important gift we can give is our story.  Every story we hear is a gift because we find ourselves in each other’s stories.  We receive the gift of permission to live out our own story bravely, own it, and share it. I’ll share how I became a cash flow coach, how it’s a part of my family, why I keep going, and why I want to keep growing for my entire life.  More importantly, I’ll tell you about the mindset breakthroughs along the way. I’ll tell you about the ugly mistakes I made during the process.  I hope to encourage you not to give up.  I hope to show you that there are lessons on the other side that are worth every gut-wrenching tear. And I’ll show you how consistently taking action, no matter how imperfect, has been the secret to growth, confidence, and progress. I hope to give you the permission to think differently and grow along with like-minded entrepreneurs.     In case you missed it, in the prior episodes, we covered How The Money Advantage Began, and my co-host Bruce's backstory in The Mindset Shift. My Core Strengths Illuminated By an Eclectic History I grew up the oldest of 4 on a farm in Minnesota. Everything I did was with my whole heart, with a grand, epic meaning. I was involved in 4-H throughout grade school. At 12 years old, on one of my project folders I defined 4-H: … a window into greater levels of knowledge, determination, personal development, perseverance and effort which involves making friends, learning new skills, and having fun. I rode horses and competed at the state level in barrel racing.  This taught me alot about dedication, hard work, and being coachable. At 17, I moved 1,300 miles away from home to join a ministry training program.  We traveled across the nation, leading youth conferences. I joined the administrative staff of my church and led a team of 90 volunteers, and learned that I loved inspiring people to work together.  Through writing training curriculum, I developed the ability to teach. After I married Lucas in 2006, I finished out a bachelor’s degree in psychology and business.  I was drawn to marriage and family therapy.  In college, I discovered my aptitude for accounting and was offered a paid scholarship to make it my major.  I turned it down, thinking I wouldn’t be interested in “crunching numbers.” Out of college, I landed a career in business and human resource management.  Training and development was my strength, and I thrived in building relationships that drew out the potential of others and inspiring teamwork.  I learned that leadership and influence didn’t have to come from a company title or a supervisory position. The Intrigue of Entrepreneurship I can point back to an eighth-grade introduction to Robert Kiyosaki’s Rich Dad Poor Dad, and the Cashflow Game, as the first seed of entrepreneurship in my life. I wanted to understand investing and business ownership that made money and created financial freedom. The desire lay dormant for several years and resurfaced when Lucas and I were dating. We’d have long conversations about what we wanted to do in the future.  We weighed and researched many options, from starting a computer services company, to a coffeehouse, to buying a franchise like a Subway or a cleaning company. At the time, we didn’t know much about our unique abilities or how to best use our strengths.  Our main motivation was to build a business that would help us personally create cash flow and financial freedom. The Silly Idea That Got Us Started Five years after we were married, we welcomed our daughter into the world.  Overnight, I went from full-time employee to full-time stay-at-home mom. With naivety that makes me laugh now, after having my first child, I thought I'd have so much free time, why not start a business? - As much courage as it takes to tell one’s story, it’s also tremendously freeing and empowering. -
As much courage as it takes to tell one’s story, it’s also tremendously freeing and empowering.



I heard it said that the most important gift we can give is our story.  Every story we hear is a gift because we find ourselves in each other’s stories.  We receive the gift of permission to live out our own story bravely, own it, and share it.

I’ll share how I became a cash flow coach, how it’s a part of my family, why I keep going, and why I want to keep growing for my entire life.  More importantly, I’ll tell you about the mindset breakthroughs along the way.

I’ll tell you about the ugly mistakes I made during the process.  I hope to encourage you not to give up.  I hope to show you that there are lessons on the other side that are worth every gut-wrenching tear.

And I’ll show you how consistently taking action, no matter how imperfect, has been the secret to growth, confidence, and progress.

I hope to give you the permission to think differently and grow along with like-minded entrepreneurs.

 



 

In case you missed it, in the prior episodes, we covered How The Money Advantage Began, and my co-host Bruce's backstory in The Mindset Shift.
My Core Strengths Illuminated By an Eclectic History
I grew up the oldest of 4 on a farm in Minnesota.

Everything I did was with my whole heart, with a grand, epic meaning.

I was involved in 4-H throughout grade school. At 12 years old, on one of my project folders I defined 4-H:
… a window into greater levels of knowledge, determination, personal development, perseverance and effort which involves making friends, learning new skills, and having fun.
I rode horses and competed at the state level in barrel racing.  This taught me alot about dedication, hard work, and being coachable.

At 17, I moved 1,300 miles away from home to join a ministry training program.  We traveled across the nation, leading youth conferences.

I joined the administrative staff of my church and led a team of 90 volunteers, and learned that I loved inspiring people to work together.  Through writing training curriculum, I developed the ability to teach.

After I married Lucas in 2006, I finished out a bachelor’s degree in psychology and business.  I was drawn to marriage and family therapy.  In college, I discovered my aptitude for accounting and was offered a paid scholarship to make it my major.  I turned it down, thinking I wouldn’t be interested in “crunching numbers.”

Out of college, I landed a career in business and human resource management.  Training and development was my strength, and I thrived in building relationships that drew out the potential of others and inspiring teamwork.  I learned that leadership and influence didn’t have to come from a company title or a supervisory position.
The Intrigue of Entrepreneurship
I can point back to an eighth-grade introduction to Robert Kiyosaki’s Rich Dad Poor Dad, and the Cashflow Game, as the first seed of entrepreneurship in my life.

I wanted to understand investing and business ownership that made money and created financial freedom.

The desire lay dormant for several years and resurfaced when Lucas and I were dating.

We’d have long conversations about what we wanted to do in the future.]]>
Bruce Wehner & Rachel Marshall clean 40:13
The Mindset Shift – TMA 002 https://themoneyadvantage.com/mindset-shift/ Wed, 08 Nov 2017 03:54:12 +0000 https://themoneyadvantage.com/?p=917 At 25 years old, Bruce had chest pains and thought he was having a heart attack.  The crisis caused him to face his own mortality.  He re-evaluated the nobility of hard work, pushing himself, and hustling. Bruce’s backstory highlights two strategic mindset shifts that have developed him into the person he is today. Because of his experience, he has become a giver with the keen ability to add value to his clients’ lives. The first shift was a decision not to be dependent on another person or entity for his livelihood. The second shift was the move from transactional selling to truly delivering value. Bruce’s early life experiences in business and entrepreneurship led him to embrace business ownership as a way of life.  Because he understands the business culture and unique challenges owners face, he serves them with tremendous value. His perspective and insights are what have allowed him to personally take thousands of clients through a financial discovery process.  His objective is to put the client in control of their own financial destiny. We hope that you will find yourself in his story and that his transparent honesty will validate your own experiences.     In case you missed it, in the prior episode, we discussed How The Money Advantage Began. The Prevailing Culture of Dependence Bruce grew up during the ‘60s and ‘70s.  During the years of the Vietnam War conflict in the '60s, the US economy was struggling.  This was an influential time for Bruce as he watched the birth of entitlement programs. Additionally, in the pre-World War II timeframe, as the industrial revolution began, the economy shifted from being dominated by small businesses, to one driven by corporations and employees. Together, these changes caused people to develop a mindset of dependence on the government and corporations. The Early Influence of His Father’s Business Despite the backdrop of dependence that surrounded him, Bruce learned about business ownership at a very young age. He was the child of German immigrants. His father, like many others in the immigrant community, owned a business. From working in his father’s Shell Service Station, Bruce learned about the value of hard work and the necessity of innovation. He watched his Dad build a self-sustaining business.  His dad developed a team and had the flexibility to leave the business and have it continue to operate. As a child, he remembers working long hours in the gas station, often from 6 a.m. to 9 p.m. The Need for Innovation During Creative Destruction The Oil Embargo of 1975-1976 and Missouri’s Blue Laws restricted his father’s ability to operate his business. This brought about creative destruction, shifting the industry from true service to self-service and convenience.  Service stations used to include pumping gas for people, tire rotation, windshield washing, checking the radiator and fan belts.  To stay competitive, merchants had to mark down the gas.  They provided gas as a loss leader and added convenience items to bring in profit. Bruce’s father couldn't expand into the convenience model because his station was landlocked.  He was unable to ride the wave of change and stay profitable in the new environment and lost his business as a result. The Undercurrent of a Scarcity Mindset As Bruce looks back, he notices the fear that shrouded his father’s entrepreneurial activities.  Business was a grind, and the hard work and long hours were esteemed.  Business was not something you could enjoy and find true meaning and fulfillment in. His family and community believed in never owing anyone, business ownership, taking care of yourself, and living frugally. Additionally, there was a trend in the Baby Boomer generation that it was taboo to talk about money.  As a result, they didn't pass on knowledge to the next generation. In spite of it being a forbidden topic, Bruce was curious about money. One day, At 25 years old, Bruce had chest pains and thought he was having a heart attack.  The crisis caused him to face his own mortality.  He re-evaluated the nobility of hard work, pushing himself, and hustling. -


Bruce’s backstory highlights two strategic mindset shifts that have developed him into the person he is today. Because of his experience, he has become a giver with the keen ability to add value to his clients’ lives.

The first shift was a decision not to be dependent on another person or entity for his livelihood.

The second shift was the move from transactional selling to truly delivering value.

Bruce’s early life experiences in business and entrepreneurship led him to embrace business ownership as a way of life.  Because he understands the business culture and unique challenges owners face, he serves them with tremendous value.

His perspective and insights are what have allowed him to personally take thousands of clients through a financial discovery process.  His objective is to put the client in control of their own financial destiny.

We hope that you will find yourself in his story and that his transparent honesty will validate your own experiences.

 



 

In case you missed it, in the prior episode, we discussed How The Money Advantage Began.
The Prevailing Culture of Dependence
Bruce grew up during the ‘60s and ‘70s.  During the years of the Vietnam War conflict in the '60s, the US economy was struggling.  This was an influential time for Bruce as he watched the birth of entitlement programs.

Additionally, in the pre-World War II timeframe, as the industrial revolution began, the economy shifted from being dominated by small businesses, to one driven by corporations and employees.

Together, these changes caused people to develop a mindset of dependence on the government and corporations.
The Early Influence of His Father’s Business
Despite the backdrop of dependence that surrounded him, Bruce learned about business ownership at a very young age.

He was the child of German immigrants. His father, like many others in the immigrant community, owned a business.

From working in his father’s Shell Service Station, Bruce learned about the value of hard work and the necessity of innovation.

He watched his Dad build a self-sustaining business.  His dad developed a team and had the flexibility to leave the business and have it continue to operate.

As a child, he remembers working long hours in the gas station, often from 6 a.m. to 9 p.m.
The Need for Innovation During Creative Destruction
The Oil Embargo of 1975-1976 and Missouri’s Blue Laws restricted his father’s ability to operate his business.

This brought about creative destruction, shifting the industry from true service to self-service and convenience.  Service stations used to include pumping gas for people, tire rotation, windshield washing, checking the radiator and fan belts.  To stay competitive, merchants had to mark down the gas.  They provided gas as a loss leader and added convenience items to bring in profit.

Bruce’s father couldn't expand into the convenience model because his station was landlocked.  He was unable to ride the wave of change and stay profitable in the new environment and lost his business as a result.
The Undercurrent of a Scarcity Mindset
As Bruce looks back, he notices the fear that shrouded his father’s entrepreneurial activities.  Business was a grind,]]>
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How The Money Advantage Began – TMA 001 https://themoneyadvantage.com/how-the-money-advantage-began/ Wed, 08 Nov 2017 01:15:36 +0000 https://themoneyadvantage.com/?p=899 The Money Advantage was born out of unexpected collaboration in the most unlikely of circumstances. Three financial service professionals in an industry known for its undercurrent of competition, from across state lines, different companies, different levels of experience, and different generations. With the common ground of a desire to bring empowering education to business owners to help them keep and control more of their money, a Go-Giver spirit, a willingness to say yes to the unknown and live it as an adventure, and a little dream to start a podcast and the surprising ignition switch that made it happen. I’ll tell you the story of how we met, why we’ve continued to build a collaborative relationship, why we’ve teamed up to deliver The Money Advantage to you, and what you can expect as a result.   The Reason We Met Bruce Wehner’s organization, e3 Wealth, based in St. Louis, Missouri, had become disenfranchised with financial services industry. They saw how difficult it was for a person to get consistent financial advice from their CPA, investment advisor, insurance broker, and mortgage professional, who often worked independently, not collaboratively. They engaged in a mission to transform the financial industry, building a teamwork model across professionals. The objective was to foster relationships with like-minded financial professionals, to share best practices and best empower clients. They partnered with the Nelson Nash Institute to create the Freedom Advisor Live event as a step towards building this vision. My husband, Lucas and I, wealth strategists in Virginia, heard about the event through the Nelson Nash Institute.  When we listened to their teleconferences, we discovered a team doing the same work, that had much more experience. We booked plane tickets and attended the first Freedom Advisor event in November 2015 with the desire to find mentors. It Was the Start of a Collaborative Working Relationship We took immediate action on the lessons we learned, changing most of our client process. One of the changes was implementing a financial picture process with our clients. As I worked with clients, I discussed our recommendations with Bruce to gain further insight.  As a result, we had frequent conversations over the two years that followed. How The Money Advantage Was Born One of the many areas of common ground was that Bruce and I are educators by nature. We both believe in the power of education to give people the confidence to make decisions. Bruce had the experience of sitting down with over 4,000 clients.  One of his unique abilities is strategic thinking.  Through his volume of real-life experience, he has developed the skill to lead clients in thinking exercises that support clear decision-making. My unique ability is communicating complex ideas in a way that’s fun, simple and doable.  I’m able to put ideas down on paper and into a process and communicate them in a way that helps people come to their own conclusions.  I'd been creating video and blog content for over a year, and wanted to produce higher quality educational content with more depth and context. I had been creating video and blog content for over a year, and I saw podcasting as the next step to produce higher quality educational content with more depth and context. Even though it was my desire to start a podcast, it was my husband Lucas that made it happen.  On a hunch, he called up Bruce and asked if he would co-host a show with me. Bruce said yes! Imagine my surprise when I stood face to face with my dream. It was for now, not someday… Lucas and I believed that partnership with Bruce was just what was needed to increase the quality of the conversation. It was the impetus that put everything in motion to deliver The Money Advantage to you today. The State of the Financial Services Industry We recognize that there’s so much noise in the financial industry today.  Do this. The Money Advantage was born out of unexpected collaboration in the most unlikely of circumstances. Three financial service professionals in an industry known for its undercurrent of competition, from across state lines, different companies, Three financial service professionals in an industry known for its undercurrent of competition, from across state lines, different companies, different levels of experience, and different generations.

With the common ground of a desire to bring empowering education to business owners to help them keep and control more of their money, a Go-Giver spirit, a willingness to say yes to the unknown and live it as an adventure, and a little dream to start a podcast and the surprising ignition switch that made it happen.

I’ll tell you the story of how we met, why we’ve continued to build a collaborative relationship, why we’ve teamed up to deliver The Money Advantage to you, and what you can expect as a result.

 


The Reason We Met
Bruce Wehner’s organization, e3 Wealth, based in St. Louis, Missouri, had become disenfranchised with financial services industry.

They saw how difficult it was for a person to get consistent financial advice from their CPA, investment advisor, insurance broker, and mortgage professional, who often worked independently, not collaboratively.

They engaged in a mission to transform the financial industry, building a teamwork model across professionals. The objective was to foster relationships with like-minded financial professionals, to share best practices and best empower clients.

They partnered with the Nelson Nash Institute to create the Freedom Advisor Live event as a step towards building this vision.

My husband, Lucas and I, wealth strategists in Virginia, heard about the event through the Nelson Nash Institute.  When we listened to their teleconferences, we discovered a team doing the same work, that had much more experience.

We booked plane tickets and attended the first Freedom Advisor event in November 2015 with the desire to find mentors.
It Was the Start of a Collaborative Working Relationship
We took immediate action on the lessons we learned, changing most of our client process. One of the changes was implementing a financial picture process with our clients. As I worked with clients, I discussed our recommendations with Bruce to gain further insight.  As a result, we had frequent conversations over the two years that followed.
How The Money Advantage Was Born
One of the many areas of common ground was that Bruce and I are educators by nature. We both believe in the power of education to give people the confidence to make decisions.

Bruce had the experience of sitting down with over 4,000 clients.  One of his unique abilities is strategic thinking.  Through his volume of real-life experience, he has developed the skill to lead clients in thinking exercises that support clear decision-making.

My unique ability is communicating complex ideas in a way that’s fun, simple and doable.  I’m able to put ideas down on paper and into a process and communicate them in a way that helps people come to their own conclusions.  I'd been creating video and blog content for over a year, and wanted to produce higher quality educational content with more depth and context.

I had been creating video and blog content for over a year, and I saw podcasting as the next step to produce higher quality educational content with more depth and context.

Even though it was my desire to start a podcast, it was my husband Lucas that made it happen.  On a hunch, he called up Bruce and asked if he would co-host a show with me.

Bruce said yes!]]>
Bruce Wehner & Rachel Marshall clean 29:22