The Money Advantage Podcast https://themoneyadvantage.com Personal Finance for the Entrepreneurially-Minded! Tue, 15 Jan 2019 23:31:49 +0000 en-US hourly 1 https://wordpress.org/?v=5.0.3 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 9 Keys to a Happy Career Making Millions (Reviewed) – TMA 059 https://themoneyadvantage.com/9-keys-happy-career-making-millions-reviewed/ Mon, 14 Jan 2019 10:00:21 +0000 https://themoneyadvantage.com/?p=3917 https://www.youtube.com/watch?v=L9jhLD0Yz38 A big part of building a life and business you love is doing fulfilling work that produces a high income.  Some may relegate that caliber of work to the one-in-a-million, unicorn-type anomaly – a dream job that doesn’t exist.  However, research-based evidence proves otherwise, finding that 38% of US employees report that they are “very satisfied” with their jobs.  It is possible to do business that makes you happy and highly successful.   If you can meet both of these objectives in a single career, what’s the secret?  How can you deliberately find and produce work you love, so you don’t settle for being one of the more common 62% majority who is less than satisfied?  John Rampton outlines the criteria in his Entrepreneur.com article, 9 Keys to a Happy Career Making Millions. #1: Don’t Just “Follow Your Passion” Unfortunately, the world is filled with broke, passionate people.  Following your passion may sound like the answer to escaping a soul-crushing, mind-numbing job and finding the nirvana of purpose.  But, many well-intentioned, ill-advised people have taken the leap of faith out of a well-paying corporate job, followed their passion, became an entrepreneur, and wound up losing everything. Source: Singularity Hub Remember the foundational wealth principle that dollars follow value?  Rather than following your passion, instead, find what other people want, need, value, and are willing to pay for.  Then use your passion and skill set to meet that need in a better, faster, or more efficient way.  This is how to find what you love that other people love you doing. And that means you’ll be paid handsomely as well. While passion is important to fulfillment, it isn’t everything.  Just because something is exciting and important to you doesn’t mean it will lock into the gear of economic transactions. Instead, fulfilling work requires the intersection of your passion, mission, vocation, and profession.  This means that you are great at it, you love it, the world needs it, and you are paid for it.  Your purpose is at the center of this alignment. This is where you create the maximum impact. So, passion isn’t everything, but it’s one part of a bigger puzzle.  You need to solve the whole algorithm to find work you love. #2: Do What You’re Good At When you do work that you can perform with excellence, you gain pride and a tremendous sense of accomplishment. This contributes to and elevates your fulfillment. But where does that leave you if you feel a calling to new work?  Maybe you want to write or invest in real estate, and you haven’t yet developed skill in that area.   When you start out, you won’t be amazing or command a substantial income.  But through committing the time and discipline to practice as Stephen Pressfield discusses in The War of Art, you’ll become a master. #3: Do Work That’s Engaging Engaging work is defined as work with variety, a sense of completion, autonomy, feedback and a sense of contribution that your work affects other people’s lives. It's all about how you impact others, which is a result of how much value you provide, as demonstrated in The Go-Giver. Stimulating work means that you are at the edge of your comfort zone.  And that means that you are continually growing.  To grow, you need to develop a growth mindset that asks, how can I become this, rather than a fixed mindset that believes, this is who I am. #4: More Income Is Better, To a Point So many people pursue higher and higher incomes and leave their own fulfillment on the back shelf waiting for someday. Yes, higher income is better. You then have the means to provide for your needs and live out a depth of experience that expands yourself and your perspective. But placing too much emphasis on the size of your paycheck can actually shrink the quality of your life.  If it comes at the expense of unfulfilling work that demands all you...

https://www.youtube.com/watch?v=L9jhLD0Yz38

A big part of building a life and business you love is doing fulfilling work that produces a high income.  Some may relegate that caliber of work to the one-in-a-million, unicorn-type anomaly – a dream job that doesn’t exist.  However, research-based evidence proves otherwise, finding that 38% of US employees report that they are “very satisfied” with their jobs.  It is possible to do business that makes you happy and highly successful.  

If you can meet both of these objectives in a single career, what’s the secret?  How can you deliberately find and produce work you love, so you don’t settle for being one of the more common 62% majority who is less than satisfied?  John Rampton outlines the criteria in his Entrepreneur.com article, 9 Keys to a Happy Career Making Millions.

#1: Don’t Just “Follow Your Passion”

Unfortunately, the world is filled with broke, passionate people.  Following your passion may sound like the answer to escaping a soul-crushing, mind-numbing job and finding the nirvana of purpose.  But, many well-intentioned, ill-advised people have taken the leap of faith out of a well-paying corporate job, followed their passion, became an entrepreneur, and wound up losing everything.

Ikigai
Source: Singularity Hub

Remember the foundational wealth principle that dollars follow value?  Rather than following your passion, instead, find what other people want, need, value, and are willing to pay for.  Then use your passion and skill set to meet that need in a better, faster, or more efficient way.  This is how to find what you love that other people love you doing. And that means you’ll be paid handsomely as well.

While passion is important to fulfillment, it isn’t everything.  Just because something is exciting and important to you doesn’t mean it will lock into the gear of economic transactions.

Instead, fulfilling work requires the intersection of your passion, mission, vocation, and profession.  This means that you are great at it, you love it, the world needs it, and you are paid for it.  Your purpose is at the center of this alignment. This is where you create the maximum impact.

So, passion isn’t everything, but it’s one part of a bigger puzzle.  You need to solve the whole algorithm to find work you love.

#2: Do What You’re Good At

When you do work that you can perform with excellence, you gain pride and a tremendous sense of accomplishment. This contributes to and elevates your fulfillment.

But where does that leave you if you feel a calling to new work?  Maybe you want to write or invest in real estate, and you haven’t yet developed skill in that area.  

When you start out, you won’t be amazing or command a substantial income.  But through committing the time and discipline to practice as Stephen Pressfield discusses in The War of Art, you’ll become a master.

#3: Do Work That’s Engaging

Engaging work is defined as work with variety, a sense of completion, autonomy, feedback and a sense of contribution that your work affects other people’s lives.

It’s all about how you impact others, which is a result of how much value you provide, as demonstrated in The Go-Giver.

Stimulating work means that you are at the edge of your comfort zone.  And that means that you are continually growing.  To grow, you need to develop a growth mindset that asks, how can I become this, rather than a fixed mindset that believes, this is who I am.

#4: More Income Is Better, To a Point

So many people pursue higher and higher incomes and leave their own fulfillment on the back shelf waiting for someday.

Yes, higher income is better. You then have the means to provide for your needs and live out a depth of experience that expands yourself and your perspective.

But placing too much emphasis on the size of your paycheck can actually shrink the quality of your life.  If it comes at the expense of unfulfilling work that demands all your time and energy, you’ll sacrifice all of the things that a higher income brings.  Too great an emphasis just on money itself will make you one-dimensional because you’ll be underdeveloped in other areas.  Your family relationships, social fulfillment, and your intellectual expansion will suffer.  And when you have pain in these key areas of your life, you actually limit your ability to make money, because you’re not in an abundance mindset. 

#5: Help Others

Helping others leads to life satisfaction.  

And while the first thing that you think of may be charitable donations and socially-conscious work, your most powerful form of helping others is by serving people through your vocation.

You will get all you want in life if you help enough other people get what they want.

Zig Ziglar

This comes back to how integrated and interconnected we all are.  When we help others thrive, we will absolutely thrive as a result.

#6: Work-Life Balance

Work-life balance is a multi-faceted concept, especially in the life of an entrepreneur.  As you are building and scaling your business, there are times that one area of your life needs to receive more attention.  Focusing on that one area means you’ve not placed as much focus on other areas.  

9 Keys to a Happy Career Making Millions

There’s no such thing as complete balance in the moment. Frankly, it just heaps on the guilt to try to achieve this unattainable perfection.  But when you add up all your moments, you want to see that you’ve spent quality time attending to all the things that matter most.  

One way to achieve this well is to use Dan Sullivan’s Entrepreneurial Time System.  This method uses blocking to carve out full days to focus on the core tasks that propel your growth, buffer days to handle the extraneous things that certainly arise, and free days to completely disconnect from work to refuel and recharge.

However you schedule your time, be intentional and plan in advance.  You’ll find more time to be productive, to engage with your family, and to tend to domestic and personal affairs.

#7: Find Variety by Merging Education, Autonomy, and Security

No one wants to be a cog in a machine, performing monotonous, mundane work.  

Instead, to add variety, increase your education by learning new skills or developing an existing skill set.  

Security is also a multi-faceted attribute of fulfilling work.  

While we all crave certainty for the future, we entrepreneurs see this a little differently.  We create our own stability and safety, by braving temporary uncertainty and risk with faith while we build a sustainable business.

#8: Work with People You Like

This really goes without saying. More people leave a boss than leave companies.  Why? The relationships in your working environment are crucial to your satisfaction.  Working with great people is exciting and stimulating, while working with people who drain your energy can make you hate your job and your life.

However, as a business owner, you have an even greater responsibility to maintain your company culture by hiring people that the rest of the team will enjoy working with.  The best way to do this is to define your values, mission, and brand clearly, and then hire according to that corporate compass.

Be very specific on exactly what a role entails, and then only hire someone who loves to do that work.  You can find conation, motivation, and strengths matches with assessments like the KolbeDISC, the Enneagram, or the Fascination Advantage.

#9: Eliminate the Negatives

After all is said and done, get rid of easily-adaptable elements that frustrate you about your work.  

If a long commute spikes your blood pressure and constricts your quality time with family, consider working from home.

If long hours are the cause of energy drain, increase your productivity by focusing on deep work and taking more time off.

When you feel you are not receiving pay commensurate with your work, demonstrate more value, raise your prices, and ask for what you are worth.

If you are tenuous because of job insecurity, create a culture of celebration or go where you are celebrated. 

Make Fulfillment a Top Priority, Now

How can you use these nine steps to up-level your work today to make it more fulfilling, better for you, and make you more able to give value to others?

Book a Call to Find Out Your Next Step to Time and Money Freedom

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.

]]>
https://www.youtube.com/watch?v=L9jhLD0Yz38 A big part of building a life and business you love is doing fulfilling work that produces a high income.  Some may relegate that caliber of work to the one-in-a-million,
https://www.youtube.com/watch?v=L9jhLD0Yz38




A big part of building a life and business you love is doing fulfilling work that produces a high income.  Some may relegate that caliber of work to the one-in-a-million, unicorn-type anomaly – a dream job that doesn’t exist.  However, research-based evidence proves otherwise, finding that 38% of US employees report that they are “very satisfied” with their jobs.  It is possible to do business that makes you happy and highly successful.  



If you can meet both of these objectives in a single career, what’s the secret?  How can you deliberately find and produce work you love, so you don’t settle for being one of the more common 62% majority who is less than satisfied?  John Rampton outlines the criteria in his Entrepreneur.com article, 9 Keys to a Happy Career Making Millions.







#1: Don’t Just “Follow Your Passion”



Unfortunately, the world is filled with broke, passionate people.  Following your passion may sound like the answer to escaping a soul-crushing, mind-numbing job and finding the nirvana of purpose.  But, many well-intentioned, ill-advised people have taken the leap of faith out of a well-paying corporate job, followed their passion, became an entrepreneur, and wound up losing everything.



Source: Singularity Hub



Remember the foundational wealth principle that dollars follow value?  Rather than following your passion, instead, find what other people want, need, value, and are willing to pay for.  Then use your passion and skill set to meet that need in a better, faster, or more efficient way.  This is how to find what you love that other people love you doing. And that means you’ll be paid handsomely as well.



While passion is important to fulfillment, it isn’t everything.  Just because something is exciting and important to you doesn’t mean it will lock into the gear of economic transactions.



Instead, fulfilling work requires the intersection of your passion, mission, vocation, and profession.  This means that you are great at it, you love it, the world needs it, and you are paid for it.  Your purpose is at the center of this alignment. This is where you create the maximum impact.



So, passion isn’t everything, but it’s one part of a bigger puzzle.  You need to solve the whole algorithm to find work you love.



#2: Do What You’re Good At



When you do work that you can perform with excellence, you gain pride and a tremendous sense of accomplishment. This contributes to and elevates your fulfillment.



But where does that leave you if you feel a calling to new work?]]>
Bruce Wehner & Rachel Marshall clean 33:58
Better Than A Budget: Cash Flow Awareness – TMA 058 https://themoneyadvantage.com/cash-flow-awareness-better-than-a-budget/ Mon, 07 Jan 2019 10:00:48 +0000 https://themoneyadvantage.com/?p=3816 https://www.youtube.com/watch?v=DhRLGegNeHw The ultimate goal of cash flow awareness is to save more each month.  Why? Because generously paying yourself first is the foundation of wealth creation.  With more savings, you build up capital to invest in cash-flowing assets so you can create time and money freedom.  But across all income levels, most people’s savings habits are anemic, or even on life support.  They never get ahead of their spending, so they can’t save. Every month that slips by without a good pulse on your cash flow has you veering further away from financial freedom.One remedy is to outrun the problem by making more money.   However, making more money often comes with a higher-priced lifestyle.  Without the habit and discipline of savings in place, more income does nothing to help you save more. The second solution is budgeting.  But let’s face it – budgeting stinks! It’s stressful, time-consuming, complicated, messy, and usually puts you in a bad mood.   It can seem impossible to squeeze an unpredictable life into a perfect box.  There never seems to be a good way to handle irregular and unforeseeable expenses.   Sometimes one spouse is a spender, and the other doesn’t want to instigate conflict by bringing up the subject of tightening up.   And the whole idea of denying yourself all the things you want seems the opposite of living an abundant life.  Most people finally resort to some form of “bank account budgeting." Their thought is that if it’s in the bank account, it’s available to spend.  But the eventual outcome is regret and a rude awakening when you need the money, and it isn’t there. So, instead of being the ostrich with your head in the sand, how do you commit to self-accountability and gain control of your spending?   With cash flow awareness. This is For You, I Promise You may already be saving consistently. If so, cash flow awareness will help you approach your spending more consciously, make you feel even better about your money, and probably find even more dollars to save. You might be in the top 5% of income earners and feel positive about the lifestyle you’ve had the opportunity to create, but still have a pit in your stomach when you think about the future. If you don’t know where all your money is going, and you want to figure out how to get from active income to passive income, this is for you.  Cash flow awareness will show you the steps to get in control and keep more of the money you make so you can make financial progress. If you feel your income is moderate to low and you haven’t been able to save, these steps will help you shift into a mindset of paying yourself first. And if you’re here and you’re skeptical because you’ve had a love/hate relationship with budgeting, I’ll raise my hand and say, me too! How is Cash Flow Awareness Better Than a Budget? Cash flow awareness is not just a fancy name for budgeting.  Instead, it’s a mindful, values-driven approach to tracking your money that helps you approach your spending consciously.  It’s a holistic, abundant approach to exercising and improving your stewardship, keeping more of your money, and staying happy while you do so.  And it advances you towards time and money freedom. It’s how you go from not having any idea where your money is going each month to being in complete control of what you spend.  And it’s fun, simple, and doable. The reason many people are afraid of budgeting is that it’s the equivalent of a diet.  It cues all the fears, shame, and guilt, archaically attempting to correct behavior with the punishment/reward system.  Budgets are about restrictions, everything you can’t have, the dangling carrot promising a reward if you’re good, and a whole lot of cant’s and scarcity thinking.    It’s unfortunate that the only way our society seems to deal with overindulgence is forced misery, self-punishment, and guilt.

https://www.youtube.com/watch?v=DhRLGegNeHw

The ultimate goal of cash flow awareness is to save more each month.  Why? Because generously paying yourself first is the foundation of wealth creation.  With more savings, you build up capital to invest in cash-flowing assets so you can create time and money freedom.  

But across all income levels, most people’s savings habits are anemic, or even on life support.  They never get ahead of their spending, so they can’t save. Every month that slips by without a good pulse on your cash flow has you veering further away from financial freedom.

One remedy is to outrun the problem by making more money.  

However, making more money often comes with a higher-priced lifestyle.  Without the habit and discipline of savings in place, more income does nothing to help you save more.

The second solution is budgeting. 

But let’s face it – budgeting stinks! It’s stressful, time-consuming, complicated, messy, and usually puts you in a bad mood.  

It can seem impossible to squeeze an unpredictable life into a perfect box.  There never seems to be a good way to handle irregular and unforeseeable expenses.  

Sometimes one spouse is a spender, and the other doesn’t want to instigate conflict by bringing up the subject of tightening up.  

And the whole idea of denying yourself all the things you want seems the opposite of living an abundant life. 

Most people finally resort to some form of “bank account budgeting.” Their thought is that if it’s in the bank account, it’s available to spend.  But the eventual outcome is regret and a rude awakening when you need the money, and it isn’t there.

So, instead of being the ostrich with your head in the sand, how do you commit to self-accountability and gain control of your spending?  

With cash flow awareness.

This is For You, I Promise

You may already be saving consistently. If so, cash flow awareness will help you approach your spending more consciously, make you feel even better about your money, and probably find even more dollars to save.

You might be in the top 5% of income earners and feel positive about the lifestyle you’ve had the opportunity to create, but still have a pit in your stomach when you think about the future. If you don’t know where all your money is going, and you want to figure out how to get from active income to passive income, this is for you.  Cash flow awareness will show you the steps to get in control and keep more of the money you make so you can make financial progress.

If you feel your income is moderate to low and you haven’t been able to save, these steps will help you shift into a mindset of paying yourself first.

And if you’re here and you’re skeptical because you’ve had a love/hate relationship with budgeting, I’ll raise my hand and say, me too!

How is Cash Flow Awareness Better Than a Budget?

Cash flow awareness is not just a fancy name for budgeting.  Instead, it’s a mindful, values-driven approach to tracking your money that helps you approach your spending consciously.  It’s a holistic, abundant approach to exercising and improving your stewardship, keeping more of your money, and staying happy while you do so.  And it advances you towards time and money freedom.

It’s how you go from not having any idea where your money is going each month to being in complete control of what you spend.  And it’s fun, simple, and doable.

The reason many people are afraid of budgeting is that it’s the equivalent of a diet.  It cues all the fears, shame, and guilt, archaically attempting to correct behavior with the punishment/reward system.  Budgets are about restrictions, everything you can’t have, the dangling carrot promising a reward if you’re good, and a whole lot of cant’s and scarcity thinking.   

It’s unfortunate that the only way our society seems to deal with overindulgence is forced misery, self-punishment, and guilt.  No wonder we avoid and procrastinate getting our spending under control.

What We’ll Cover

Today, we’ll show you how to enjoy tracking your spending.  You’ll find out how to increase your cash flow by paying attention to it.  

You’ll gain the framework to run your personal cash flow like your business finances. Because, let’s face it, in business, you already know that cash flow is your lifeblood, so you monitor it carefully. Cash flow is just as critical in your personal life too, so it’s time to start acting like it.

You’ll get the tools and exact steps you need to go from out of control to being the boss of your money, without having to scrimp, cut back, or beat yourself into submission.

We’ll give you a new lens on spending that’s all about what you CAN have, not what you CAN’T.

You’ll go from feeling confused, powerless, and in the dark to empowered with clarity to see where your money is going each month.

Where Cash Flow Awareness Fits into Your Cash Flow System

Cashflow Awareness

Cash flow awareness is just one step in the greater Survival to Significance Cash Flow System.

It fits into stage 1, the foundation of a financially successful life.  

You can’t save to build up capital to put to work if you don’t have a grasp on the fundamentals of your spending habits, how much monthly cash flow you have, and what comes in and what goes out each month.

The Purpose of Cash Flow Awareness

As we mentioned earlier, the purpose of cash flow awareness is to increase your cash flow, the gap between what you make and what you spend each month.  Your income, minus expenses.

Ideally, you want your cash flow to be at least 20 – 30% of your income.  To do this, you want to elevate cash flow to the top priority in your financial life so that it comes off the top before you spend each month.  Instead of spending first and saving the rest, you save first and then spend the rest.

But most people don’t start there.  To increase your cash flow from where you are to the target 20 – 30% before spending, you want to raise your level of attention to your inflows and outflows.

You can increase your cash flow in two ways: by increasing income, or by decreasing expenses.  Cash flow awareness deliberately attends to both.

The Connection Between Abundance Thinking and Awareness

Rather than working from a mindset of scarcity, restriction, fear, and guilt, cash flow awareness starts with an abundance perspective.  

Abundance is expansive, believing that there is more than enough, and enabling you to live your best life.  

However, spending on whatever makes you happy right now and being oblivious to your spending habits isn’t abundance, it’s just optimism.  And optimism can lead to naivety and ignorance.  

Instead, abundance is mindful, realistic, and purposefully maximizes all that you have.

Think of an architect designing a building.  The more care and precision he uses, the more proud he’ll be of the elegant outcome.  Instead, if he just haphazardly sketched out the final design without instruments or measuring angles, the building will reflect his carelessness.  The materials would come up short, joists wouldn’t join correctly, and the result would be poor-quality workmanship.

The same is true in your life’s financial architecture.  Cash flow awareness is a way to focus your attention on your cash flow and watch over it diligently so that it can thrive. Similar to your relationships or health, any area of your life where you focus your energy and attention will grow and improve, even before you make any actual changes.  However, the areas you neglect and ignore will disintegrate.

In fact, just bringing awareness to where your money is going can often increase your savings.  You might find gym memberships or magazine, car wash, or cable subscriptions that you haven’t used in months.  One family thought they were spending about $300/month eating out but found that they were actually spending an average of $3,000 each month.  

Instead of creating a guilt trip, these discoveries simply bring attention to what is actually happening.  Then you can intentionally bring your spending into harmony with your values and goals.

If You’re Already Consistently Saving

If you’re already consistently saving 20 – 30% of your income first and then spending the rest, your spending is in check, and you’ve mastered the end goal. In this position, there’s not as much reason to comb through your expenses, unless you’re looking for ways to free up additional cash flow each month.  

However, we always advocate attention to your cash flow at every level of savings, but the level of detail is less important if you are already consistently saving.

Step 1: Start with Your Values

To get started with cash flow awareness, the first step is to get really clear on your top priorities and objectives.

Initiate an honest conversation with yourself or with your partner if you’re making joint financial decisions.

What are your top priorities and values?  

For me, that includes long-term optimal health and physical vitality, so I have the energy to live out my potential and purpose.  I value the ability to serve as many people as possible to my fullest capacity. And I’m committed to nurturing high-quality relationships with the people I love most.

Be honest here.  Nothing will sabotage your financial objectives quicker than living your dream life before you have the income to support it.  Beware of making mental shortcuts and listing things like luxurious, exotic vacations, which may be something you want, but not truly a life priority and value. Remember, your dream home and bucket list are not your values.  Your values have more to do with the type of person you want to become.  

Who you are, then, is what creates your dream lifestyle.

Step 2: Create Financial Priorities Based on Your Values

Next, think through what lifestyle you can create that will support that.  

My list of top financial priorities include savings to create peace of mind and allow me to build my business and cash-flowing assets, healthy food to nourish my body, running shoes to promote long-term health, education to enrich my mind, business systems and relationships that help me leverage my unique ability, and experiences with my family that allow us to build lifelong memories.

Your financial priorities may include a great home to relax and entertain. Or maybe it’s an annual vacation to rejuvenate your soul and experience the world.

Whatever your personal priorities, make sure you plan for them first to make sure it happens.  Articulate them and write them down so you can revisit them often.  This becomes your baseline for conscious spending, preventing all the other expenses from crowding out what is most important to you.

This is the most effective way to fight the “tyranny of the urgent,” the life circumstances and expenses that seem to crop up out of nowhere and demand our attention.  

When your financial life is incongruent with your value system, you’re more likely to find inconsistencies like fast food purchases to satisfy hunger. Or you’ll get traffic tickets for rushing frazzled to your next appointment or buy lavish stuff just to impress others or expensive gifts to make up for lost quality time.  Health issues crop up because of the stress, adding extra costs. And then you feel you deserve to indulge yourself and spend money because you need a break from it all.

Step 3: Track Your Money

After you’ve outlined your values and financial priorities, you’ll set to work tracking your money.  

The goal here is to discover what you’ve spent in the past to assemble a historical account of your actual income and expenses, assigning each to categories that work for your life.  Tracking your income and expenses over time will help reveal some of your spending trends, making even the irregular expenses easier to plan for. 

There are many ways to do this, and you’ll need to find the best tools that work for you.

If you are technologically-savvy and want a quick way to look at everything all at once, you can use an online account like Mint.com.  

I personally use this tool, as it links to all my bank and credit accounts, listing every transaction, and auto-categorizing it for me.  Some of the automatic categories will not be accurate. For instance, I might need to move one Target transaction from my grocery category to clothing or gifts, or split it between categories.

For someone who prefers a more tangible, hands-on approach, you can use our cash flow awareness spreadsheet like the ready-to-use one we use with our clients here. 

Start by listing your income sources first.  Then, you can print account statements at the end of the month and tally the sums of each category of spending, listing each total on paper or in a spreadsheet.  Note that you will likely have to look up checks to see what they were written for and remember transactions that you paid in cash.  

Make It Simple and Enjoyable Enough to Be Sustainable

Here’s a confession of what didn’t work for me.  

I used to keep all receipts and manually enter every one into a spreadsheet, per category, per month.  I thought I was pretty fancy because I’d created formulas to total each column, as well as calculate the percentage of the category we’d used for the month.  In theory, it would have worked if I logged transactions as they occurred.

The problem was that I didn’t enjoy this cumbersome task at all, so I always put it off.  When I did sit down every several months, I had a mountain of receipts that I couldn’t remember actually making the purchase.  

I also had to remember to tally any checks, any automatic payments, and what we had used cash for.  

My procrastination, perfectionism, and overwhelm were a recipe for disaster.  As you can imagine, this grueling routine only lasted about a year before I gave up altogether. 

Observer, Not Critic

When you begin, think of yourself as an observer, objectively chronicling your income and expenses.  You’re not in the role of judge.  Resist the tendency to critique your spending at this point.  All you’re looking for is a factual account of what you’ve actually spent.

How Far To Look Back

To get a realistic overview, you want to look back at least a full 3 months, or even up to 12 to get the best idea of your spending trends.  

That way, you’ll better be able to find trends and averages in a later step.

Breaking Down Your Categories

Breaking down your categories itself can seem like a behemoth of a task, but don’t let it prevent you from moving forward.  You’ll need to find what works best for you here.  

Some people prefer to break everything down to the most specific categories, like household, personal care, beauty, grocery, restaurants, fast food, etc. Others prefer to stay higher level. You’ll need to find what makes the most sense for you and your family’s spending.  

Over years of tracking and making adjustments, we’ve found that we personally like to keep things simpler.  We have one category for grocery that includes all household expenses as well (think cleaning and paper products), one category for fun that includes babysitters, fun family outings, eating out, date nights, and travel.

Four Types of Expenses: Tracking Your Spending by Frequency and Predictability

Better Than a Budget - Cash Flow Awareness

To simplify the process of tracking your spending, especially if you are using a spreadsheet, here’s how you can work through the four basic types of expenses, grouping them by frequency and predictability.

Start with fixed expensesthat predictably show up as the same amount on the same day each month.  This will be things like your insurance premiums, your cell phone bill, and your mortgage.  Because they are so consistent, these expenses are the easiest to track and plan for.

Then, move onto your variable expenses.  These are the payments that you know you’ll make each month, but they’ll have differing amounts and may occur at different times throughout the month.  This will include things like groceries, gas, power, clothing, extracurricular activities and sports for the kids.  

Next, you’ll want to work through your quarterly or annual expenses.  These things happen more sporadically or irregularly, instead of every month, but you know they’ll happen at some point.  Spending to categorize here will include Christmas, birthdays, anniversaries, vacations, car licensing and tags, personal property tax, and HOA fees.

Finally, you’ll need to account for true emergenciesthat are completely unforeseen, but still a part of our human existence.  These costs could arise, but you cannot plan when or how much the bill may be in advance. This will include things like auto repairs, tire replacements, home repairs, and medical bills.

If you work through your expenses methodically in this way, it will help you more readily understand and process each type of expense.

Step 4: Analyze Your Spending Trends

Here’s where the fun really starts, because you start getting clarity.  

As challenging as it may be, stay in the observer role without criticizing what you find.  If you’re doing this together with a spouse or partner, this may be even harder, but more crucial. You are each coming from your own perspectives, values, and spending habits. It’s important that this step is one of exploration and curiosity to keep the conversation open.  If you slip into judgment, fault-finding, or guilt, the process will break down and be counterproductive.  

Remember, your objective is to increase your cash flow and savings while staying in a position of gratitude and mindfulness.

Look at your monthly totals for each category.  Are the sums fairly consistent, or do they fluctuate?  Do you find categories that the bulk of your spending happens every other month, or every three months?  Because you’re able to look back over several months, calculate your monthly averages for each category, based on your past trends.

What do you notice about your totals in each category?  How accurate were your estimations before you really uncovered the numbers?  

What feelings arise for you as you discover where your money is flowing?  Do you feel centered and congruent with your values, or are there areas you pinpoint that you’d like to adjust?  

Step 5: Discover Your Monthly Cash Flow

When you’ve calculated your monthly averages in each category, including all of your variable and irregular spending categories, add them all together. This is your total average monthly spending: your outflow.

Subtract your total average monthly expenses from your total average monthly income to arrive at your monthly cash flowtotal.  

Your cash flow is the reason we’re doing this awareness exercise in the first place. It tells you everything you need to know. (If you’re using our spreadsheet here, your income, expenses, and cash flow are calculated automatically.)

With positive cash flow, that means you have money left over each month to move to savings.  If you’re not already saving that amount each month, there may be other expenses that you’ve forgotten to account for in your cash flow awareness.

If your cash flow is negative, that means that, based on averages, you are spending more than you make each month.  In this case, you need to find a way to increase cash flow.  

Until you’re in a position where you know that you can save 20 – 30% of your income and spend the rest freely, being conscious and aware of where your money is going helps you to get on track towards being financially free.

The Key of Averages

You may or may not feel that this cash flow number is accurate, for a number of reasons.  

You may show a negative cash flow total but know that you have several months that you have money left over in the bank account.  

However, if you’ve attended to each of the previous steps carefully, trust this cash flow total.  This is what you want to work from, going forward.  

While your actual income and expenses may vary from month to month, causing variation in your cash flow, the amount you save or pull out of savings, and your ending account balances from month to month, your cash flow calculation will be your anchor, the constant that you can depend on.

Even if you have variable or cyclical income, the key is to work from averages. Look at your annual average and divide by twelve months.  Then run your expenses as if the income were level each month.  In good months, you have more left over, and you’ll use up that extra portion during months with tighter income.  

Step 6: Create a Spending Plan (Not a Budget) for the Future

When you have a good grasp on what’s most important to you and what your spending track record has been, you’re finally ready to start planning ahead for the future.  Notice that we’re on step six, with a solid foundation of the earlier five steps completed. 

This is the good stuff, but you can’t start here.  Without the foundation, you’ll just be painting dreams in the sky, and you’ll disappoint yourself the minute you step on the track toward reaching that goal.

Using your monthly averages, set a dollar value for what you expect to spend per month going forward in each category.  It’s really important to work from what you’ve actually already been spending here, so that you can make steady course corrections, rather than bipolar swings that will leave you disappointed and angry.

Fluid, But Direct Future Spending

Your spending plan will be fluid.  It will change over time.  It’s not meant to be rigid and unforgiving or feel like a law (or a budget).  Why?  Because you know that life will adjust, and your plans will need to course-correct along with it.

However, this is the time to calibrate your planned future spending with your goals. If you’ve discovered expenses that have happened in the past that are no longer a priority to you or are incongruent with your values, reduce your planned future spending in that area.  For instance, if you realize that you spent $400 at 7-11 grabbing snacks that don’t fit your health priorities, you can adjust that category to allocate that money elsewhere or eliminate that spending altogether.  

Your goal here is to slowly and steadily increase your monthly cash flow. Find small areas to make changes.  Challenge yourself to reduce some of your variable accounts by 5 – 10% the next month as you increase the intentionality of your spending.

Helpful Mint.com Settings

With Mint.com, you have a lot of flexibility to set your spending plan for each category.  

I like that I can set an expected spending amount on a schedule.  For instance, if I know that our family will spend $300 every two months for hair appointments, I can preset that into the category.  One month, we may spend nothing, but the next month will “catch up” to the plan, leveling out and showing that we’re on track with our plan, even with the monthly difference.

Additionally, I can set up a spending plan like $150/month for clothing and roll forward my unspent balance.  We may go for two or three months without buying anything. But then, the category knows that in the third month, we can go on a $450 shopping spree without going over our plan.  Meanwhile, the extra unspent money pools in the bottom of my checking account, waiting to be spent.

This works very well also for categories like children’s birthdays and Christmas. You can set your monthly average, and then essentially “save up” all year by rolling forward each month’s amount. Then, you’ll have the grand total available in the month you plan to use it.

The same goes for months that I may go over my spending in a category.  I can then find a way to lower next month’s spending in that area to compensate. That way, I bring my spending plans back into equilibrium.

How to Plan for Out of the Ordinary Expenses

No matter how much of a calculating wizard you are, you’re bound to encounter some irregular and hard-to-manage expenses.

For example, you may notice that you spent $20, $280, and then $0 in the last three consecutive months on auto maintenance.  

There are two general approaches here. You can either set a spending plan, or you can place these types of expenses in your emergency fund.

If you set a spending plan, you can average these three months and set up a plan to spend $100/month ($1200/year), or $300 every 3 months on auto maintenance, with a rollover spending plan. The money you don’t spend in a given month will stay in your checking account until you eventually spend it.

If you opt to use the emergency fund option, you could move $100/month into savings. Then the money sits at the bottom of your savings account for any unforeseen future expenses.

Either way, it’s important to put a plan in place so the money is there when you need it.

Step 7: Ongoing Maintenance of Your Cash Flow Awareness

You’ve done the bulk of the work to get organized and plan for the future. Now do yourself a favor and reap the rewards of your efforts by consistently monitoring your progress.

Set a calendar appointment on your schedule to have a meeting to track your progress on a regular basis.  Ideally, you want to set this appointment for once a week to keep a pulse on your progress throughout the month.  

At first, you might need 60 minutes or so for each conversation.  As you get more systematic and familiar with the process, you’ll be able to do most of your weekly maintenance in 15 – 30 minutes per week.

Checklist to Maintain Your Cash Flow Awareness

Use this checklist to guide your maintenance meeting. It will help you think through how well you are following your spending plan and increasing your cash flow:

  • Review your transaction history.  Do you remember all of the purchases?  Are there any duplicate charges or unknown expenses to investigate?
  • Re-categorize or split any transactions that have ended up in the wrong spending plan.  Is something uncategorized that you need to create a category for?  Did you buy clothing and groceries on one receipt and need to break down the totals for each category?
  • Monitor how you’re trending to underspend or overshoot your spending plans for the month and course correct as needed.  If there are expenses in question, why were they made?  How did they align (or not) with your value system?
  • Discuss upcoming changes in income and how you will handle them.  Are there bonuses, commissions, or slow months ahead?  Do you have ideas for a side project or items you want to sell?
  • Discuss future expenses and where you will categorize them. Decide whether adjustments are needed to other spending plans to accommodate the added costs.  Why am I making this purchase?  Do you have a major repair you need to schedule?  A doctor visit or surgery?  Is Christmas approaching and you need to discuss how you’ll spend the allotted amount? 
  • Carefully watch your cash flow and discuss ways you can increase it.  Is there extra left over this month to move to savings?  Or would you be better served by leaving that cash in your checking account to spend next month?  How could you comfortably adjust the limits by 5 – 10% on variable accounts to increase your savings by a little more than last month?
  • Monitor your emergency fund.  Is it fully stocked with your 6 – 12 months of expenses?  Have you recently had to use some of your emergency fund? Do you need to replace the sum to bump it back up to ensure you have enough set aside?
  • Make adjustments to your planned limits for categories as you see fit.  After you’ve been tracking your average history for a couple of months, it will be easier to set a realistic spending plan for each type of expense.

An Evolving Process

It’s important to think of your cash flow awareness as an evolving process.  

You’ll have new expenses that arise as your life unfolds, and other ones that no longer are a priority.  

Prices will rise on gas, or you might begin working from home, causing adjustments to your transportation costs.  Another addition to the family may bring an increased cost of groceries. Extracurricular activities, sports, and seasonal childcare costs will change over time.  You may add dance lessons, join a book club, adopt a new hobby, or start running. All of these will bring changing expenses.

Instead of getting frustrated that things aren’t turning out as you had planned, maintain an awareness of your cash flows with an end goal of increasing your monthly cash flow, while staying flexible and adapting the plan as your life changes.

Make It Fun

If sitting down with your partner seems too boring, spice it up! Make sure cash flow awareness isn’t something that you end up avoiding.

You could combine it with a glass of wine. Or make it your pre-movie activity or use a part of your date night to discuss your cash flows.

Find something that works for you. Then it becomes regularly incorporated into your life as something to look forward to, not a chore or drudgery.

The Long-Term Benefits of Cash Flow Awareness

So, there you have it!  This is the cash flow awareness exercise you can use to gain control of your spending. Without all the yuck of budgeting fears, limits, and shrinking thinking.  

Right away, you’ll begin feeling better about your money.  Over years and a lifetime, you’ll find that you save more by paying attention to your cash flows.  

Because of your expansive intentionality, you’ll watch your cash flow increase.  

Because you’ve mapped out your goals first, your spending will more closely match your values.  Instead of reactive and compulsive spending, you’ll find yourself being proactive and intentional most of the time.

You’re able to spend on fun, eating out, shopping, going to movies, shows, hosting dinner parties, or whatever you like to do. And you can do it guilt-free because you’ve planned for it in advance.

You and your spouse relieve financial tension and conflict by intentionally planning together.  It becomes enjoyable to set goals, commit, plan, execute together, and be proud of what you achieve together.

And you’re regularly raising the peace-of-mind-o’meter, knowing that you’re getting closer to your goals of time and money freedom.

Best of all, you know what you’re creating and why, and your spending is congruent with what’s most important to you.

Your Decision Point

You now have a choice.  You can stay frustrated and confused with the lack of clarity on where your money is going. If you stay here, you let your lack of cash flow govern your destiny.

Or, you can take action, ownership, and self-responsibility, and direct the course of your financial life.  But you have to do the work.  You’re armed with the right perspective, reflection on your values, study of your past spending trends, conscious planning for future spending, and a checklist for ongoing weekly maintenance. With these tools, you can systematically increase your cash flow.  

It’s up to you to use these action steps. Gain awareness of your cash flow and get on the path towards time and money freedom

To make it easier, get our ready-made, customizable, hands-on cash flow awareness spreadsheet tool that you can use to quickly gain perspective on your own cash flow awareness.  It’s the same exercise we use with our clients.  

If you’re already saving each month, but you want to get higher tax-exempt growth and have increased access to liquid capital, let us help you determine whether Privatized Banking may be a fit for you.

Book a strategy call 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.

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https://www.youtube.com/watch?v=DhRLGegNeHw The ultimate goal of cash flow awareness is to save more each month.  Why? Because generously paying yourself first is the foundation of wealth creation.  With more savings,
https://www.youtube.com/watch?v=DhRLGegNeHw




The ultimate goal of cash flow awareness is to save more each month.  Why? Because generously paying yourself first is the foundation of wealth creation.  With more savings, you build up capital to invest in cash-flowing assets so you can create time and money freedom.  

But across all income levels, most people’s savings habits are anemic, or even on life support.  They never get ahead of their spending, so they can’t save. Every month that slips by without a good pulse on your cash flow has you veering further away from financial freedom.

One remedy is to outrun the problem by making more money.  




However, making more money often comes with a higher-priced lifestyle.  Without the habit and discipline of savings in place, more income does nothing to help you save more.







The second solution is budgeting. 



But let’s face it – budgeting stinks! It’s stressful, time-consuming, complicated, messy, and usually puts you in a bad mood.  



It can seem impossible to squeeze an unpredictable life into a perfect box.  There never seems to be a good way to handle irregular and unforeseeable expenses.  



Sometimes one spouse is a spender, and the other doesn’t want to instigate conflict by bringing up the subject of tightening up.  



And the whole idea of denying yourself all the things you want seems the opposite of living an abundant life. 



Most people finally resort to some form of “bank account budgeting." Their thought is that if it’s in the bank account, it’s available to spend.  But the eventual outcome is regret and a rude awakening when you need the money, and it isn’t there.



So, instead of being the ostrich with your head in the sand, how do you commit to self-accountability and gain control of your spending?  



With cash flow awareness.



This is For You, I Promise



You may already be saving consistently. If so, cash flow awareness will help you approach your spending more consciously, make you feel even better about your money, and probably find even more dollars to save.



You might be in the top 5% of income earners and feel positive about the lifestyle you’ve had the opportunity to create, but still have a pit in your stomach when you think about the future. If you don’t know where all your money is going, and you want to figure out how to get from active income to passive income, this is for you.  Cash flow awareness will show you the steps to get in control and keep more of the money you make so you can make financial progress.



If you feel your income is moderate to low and you haven’t been able to save, these steps will help you shift into a mindset of paying yourself first.



And if you’re here and you’re skeptical because you’ve had a love/hate relationship with budgeting, I’ll raise my hand and say, me too!



How is Cash Flow Awareness Better Than a Budget?



Cash flow awareness is not just a fancy name for budgeting.  Instead, it’s a mindful, values-driven approach to tracking your money that helps you approach your spending consciously.  It’s a holistic, abundant approach to exercising and improving your stewardship,]]>
Bruce Wehner & Rachel Marshall clean 54:50
Happy New Year: 2018 Year in Review https://themoneyadvantage.com/happy-new-year-2018-year-in-review/ Mon, 31 Dec 2018 10:00:56 +0000 https://themoneyadvantage.com/?p=3892 As we transition into 2019, we wanted to bring you a personal message about how we bring closure to the end of 2018 and transition into 2019 with as much strength and intention as possible.  We think this will be really helpful to you as you’re building a life and business you love and taking control of your destiny. The Clean Slate of a New Year Ever since I was a kid, I loved waking up to freshly fallen snow.  The world was covered in white with no tracks, disruptions, or flaws. It was a fresh, clean slate. That’s how I feel about the new year. It's this clean slate that creates an expectancy, like anything is possible.  It’s a new beginning, a new start, and new goals. Purpose Instead of Resolutions for the New Year But instead of getting caught up in the buzz of new year's resolutions that usually are broken and fail within the first 24 hours of the new year, how do you stay in abundance and the right mindset? How do you set your intentions and purpose for the new year so you’ll succeed?  Start by Honoring Last Year's Successes And whether last year was a triumph that exceeded all of your goals, or whether you are still reaching for goals that you haven’t yet mastered, how do you honor and value last year?  How do you learn from it, get a sense of closure, meaning and purpose?  And how do you use the last year as a foundation that propels you into the new year as a better, stronger, kinder, wiser, and more successful person? Since this life is one long story, how do you finish well in the middle of the journey?   Our Year End Reflection Tradition We’re going to share with you what we do as part of our ritual and tradition at the end of every year to reflect on the last year, gain insight, and get clear on the next year. We used LifeBook’s annual end of year reflection ceremony guide here to have a series of in-depth conversations over the last week.   In this episode, Lucas and I share our theme for last year, our biggest triumphs and lessons learned, and how we’re using that as a foundation for success in 2019. This process helps you to stay positive by looking backward at how far you’ve come. Start With Gratitude It’s critical to start with gratitude.  Gratitude paves the way to focus on the good stuff and invites more of it into your life, because you’re in the right mindset to receive more. Focus As we built The Money Advantage from a podcast to an online business, focus was a key theme for us.  This was more about saying no to all the wrong things.  As Richard Wilson points out, the ultra-wealthy focus on what they do best.   Only a few things matter to anything, find those few things, stick to them and master them. Darren Hardy Anything that you do there are only a few things that are vital.  There are 100’s of things that must happen with open heart surgery, I only do 2 or 3 things and I leave everything else to my competent team. Dr. Oz, Heart Surgeon For every 100 great opportunities, I say no 99 times.Warren Buffet I’m as proud of what we don’t do as what we do.Steve Jobs We set up the foundation for expansion by focusing on our unique abilities and delegating. Looking Forward to the New Year Because we've laid down a tremendous amount of foundational work, we can now accelerate our growth by increasing our exposure. The Value of Faith Wherever you are, whether satisfied that last year was exceptional, or frustrated that it was less than your expectations, choose to walk in faith.  Persevere in seeing every step you take as part of a bigger journey, and know that you’re becoming the person who’s capable of serving more greatly and expanding your influence. Here is to a very successful 2019! Happy New Year!!! Success leaves clues.  Model the successful few, not the crowd, and build a life and business you love.

As we transition into 2019, we wanted to bring you a personal message about how we bring closure to the end of 2018 and transition into 2019 with as much strength and intention as possible.  We think this will be really helpful to you as you’re building a life and business you love and taking control of your destiny.

The Clean Slate of a New Year

Ever since I was a kid, I loved waking up to freshly fallen snow.  The world was covered in white with no tracks, disruptions, or flaws. It was a fresh, clean slate.

That’s how I feel about the new year. It’s this clean slate that creates an expectancy, like anything is possible.  It’s a new beginning, a new start, and new goals.

Purpose Instead of Resolutions for the New Year

But instead of getting caught up in the buzz of new year’s resolutions that usually are broken and fail within the first 24 hours of the new year, how do you stay in abundance and the right mindset?

How do you set your intentions and purpose for the new year so you’ll succeed? 

Start by Honoring Last Year’s Successes

And whether last year was a triumph that exceeded all of your goals, or whether you are still reaching for goals that you haven’t yet mastered, how do you honor and value last year? 

How do you learn from it, get a sense of closure, meaning and purpose? 

And how do you use the last year as a foundation that propels you into the new year as a better, stronger, kinder, wiser, and more successful person?

Since this life is one long story, how do you finish well in the middle of the journey?  

Our Year End Reflection Tradition

We’re going to share with you what we do as part of our ritual and tradition at the end of every year to reflect on the last year, gain insight, and get clear on the next year.

We used LifeBook’s annual end of year reflection ceremony guide here to have a series of in-depth conversations over the last week.  

In this episode, Lucas and I share our theme for last year, our biggest triumphs and lessons learned, and how we’re using that as a foundation for success in 2019.

This process helps you to stay positive by looking backward at how far you’ve come.

Start With Gratitude

It’s critical to start with gratitude.  Gratitude paves the way to focus on the good stuff and invites more of it into your life, because you’re in the right mindset to receive more.

Focus

As we built The Money Advantage from a podcast to an online business, focus was a key theme for us.  This was more about saying no to all the wrong things. 

As Richard Wilson points out, the ultra-wealthy focus on what they do best.  

Only a few things matter to anything, find those few things, stick to them and master them. 

Darren Hardy

Anything that you do there are only a few things that are vital.  There are 100’s of things that must happen with open heart surgery, I only do 2 or 3 things and I leave everything else to my competent team. 

Dr. Oz, Heart Surgeon

For every 100 great opportunities, I say no 99 times.

Warren Buffet

I’m as proud of what we don’t do as what we do.

Steve Jobs

We set up the foundation for expansion by focusing on our unique abilities and delegating.

Looking Forward to the New Year

Because we’ve laid down a tremendous amount of foundational work, we can now accelerate our growth by increasing our exposure.

The Value of Faith

Wherever you are, whether satisfied that last year was exceptional, or frustrated that it was less than your expectations, choose to walk in faith. 

Persevere in seeing every step you take as part of a bigger journey, and know that you’re becoming the person who’s capable of serving more greatly and expanding your influence.

Here is to a very successful 2019!

Happy New Year!!!

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

]]>
As we transition into 2019, we wanted to bring you a personal message about how we bring closure to the end of 2018 and transition into 2019 with as much strength and intention as possible.  We think this will be really helpful to you as you’re buildin... As we transition into 2019, we wanted to bring you a personal message about how we bring closure to the end of 2018 and transition into 2019 with as much strength and intention as possible.  We think this will be really helpful to you as you’re building a life and business you love and taking control of your destiny.







The Clean Slate of a New Year



Ever since I was a kid, I loved waking up to freshly fallen snow.  The world was covered in white with no tracks, disruptions, or flaws. It was a fresh, clean slate.



That’s how I feel about the new year. It's this clean slate that creates an expectancy, like anything is possible.  It’s a new beginning, a new start, and new goals.



Purpose Instead of Resolutions for the New Year



But instead of getting caught up in the buzz of new year's resolutions that usually are broken and fail within the first 24 hours of the new year, how do you stay in abundance and the right mindset?



How do you set your intentions and purpose for the new year so you’ll succeed? 



Start by Honoring Last Year's Successes



And whether last year was a triumph that exceeded all of your goals, or whether you are still reaching for goals that you haven’t yet mastered, how do you honor and value last year? 



How do you learn from it, get a sense of closure, meaning and purpose? 



And how do you use the last year as a foundation that propels you into the new year as a better, stronger, kinder, wiser, and more successful person?



Since this life is one long story, how do you finish well in the middle of the journey?  




Our Year End Reflection Tradition



We’re going to share with you what we do as part of our ritual and tradition at the end of every year to reflect on the last year, gain insight, and get clear on the next year.



We used LifeBook’s annual end of year reflection ceremony guide here to have a series of in-depth conversations over the last week.  



In this episode, Lucas and I share our theme for last year, our biggest triumphs and lessons learned, and how we’re using that as a foundation for success in 2019.



This process helps you to stay positive by looking backward at how far you’ve come.



Start With Gratitude



It’s critical to start with gratitude.  Gratitude paves the way to focus on the good stuff and invites more of it into your life, because you’re in the right mindset to receive more.



Focus



As we built The Money Advantage from a podcast to an online business, focus was a key theme for us.  This was more about saying no to all the wrong things. 



As clean 20:30
Mobile Home Park Investing, with Jefferson Lilly of Park Avenue Partners – TMA 057 https://themoneyadvantage.com/mobile-home-park-investing-jefferson-lilly-park-avenue-partners/ Mon, 17 Dec 2018 10:00:21 +0000 https://themoneyadvantage.com/?p=3774 When it comes to seeking out and mastering a profitable niche, Jefferson Lilly, mobile home park investor, is a true leader.  Looking for a stable way to provide value and earn returns, Jefferson began analyzing real estate deals in multifamily housing across the Midwest.  What he found was perplexing, but he continued to pursue this path until he found out why.  And he’s glad he did because it led him to his life’s work and his ideal investment niche!   Where most multifamily apartment buildings were returning 8%, a mobile home park in the same locality was paying 10%, showing that mobile home parks were more profitable. After he saw this phenomenon ringing true repeatedly in other areas across the country, he started researching to discover why they are such a better deal than apartment buildings, office, retail, or self-storage.  His discovery led to investing personally and managing investor’s capital through partnerships over the last 11 years to acquire 25 mobile home parks in 13 states. His mission is to create wealth for his investors and to expand the supply of affordable housing. We’ll discuss this fascinating real estate niche that’s providing an opportunity for accredited investors to earn returns in the range of 8 – 15% cash on cash. The Definition of Accredited Investor If you may not know what accredited means, here’s a quick definition.  This is an investor with at least $1 Million of net worth, not including the value of their home, or making at least $200K if single, or $300K if married. We know that a majority of our listeners and audience fall into this category and are actively looking for ways to put their cash to work earning a return in the most productive way.  If you aren’t there yet, this will be an excellent opportunity to expand your knowledge in preparation. Where Investing Fits into the Cash Flow System We are a community of wealth creators.  We know that it is not enough to make a great income.  Instead, you have to figure out how to keep more of the money you make, protect your money, and make more through the right investing decisions.   Investing is part of stage 3 in the Cash Flow System.  As you build a cash-flowing asset portfolio of real estate and business, you accelerate your path to time and money freedom.   Who Is Jefferson Lilly? Jefferson Lilly is the founder and managing partner of Park Avenue Partners.  Jefferson is a mobile home park investment expert and educator. He is responsible for Park Avenue Partners’ strategic direction, acquisitions, and property operations. Before founding Park Avenue Partners, he co-founded Park Street Partners, a similar partnership also focused on acquiring mobile home parks nationwide. PSP’s investments are returning 8% - 15% cash annually to Limited Partners; appreciation is expected to increase returns further.  Both personally and through his partnerships, Jefferson has acquired 25 MHPs in 13 states since 2007 totaling over $56mm in value. He started the industry’s first podcast (Mobile Home Park Investors) and the largest group on LinkedIn dedicated to investing in mobile home parks.  Before beginning to manage investors’ money in 2014, Jefferson spent seven years investing his own capital in mobile home parks and consulting to high-net-worth families with interests in the manufactured housing industry. Earlier in his career, he held a range of consulting and sales positions with Bain & Company, Viacom, and Verisign. Jefferson has been featured in The New York Times, Bloomberg Magazine, and on the Real Money television show. He holds a B.A. from the University of Pennsylvania and an MBA from the Wharton School of Business.  Jefferson’s favorite mobile home is the 1954 Spartan Imperial Mansion, upon which their logo is partially based. He finds the Bowlus Road Chief to be pretty appealing too. Conversation Highlights (Partial Transcript) What Are the Benefits of Mobile Home Park Investing...

When it comes to seeking out and mastering a profitable niche, Jefferson Lilly, mobile home park investor, is a true leader.  Looking for a stable way to provide value and earn returns, Jefferson began analyzing real estate deals in multifamily housing across the Midwest.  What he found was perplexing, but he continued to pursue this path until he found out why.  And he’s glad he did because it led him to his life’s work and his ideal investment niche!  

Where most multifamily apartment buildings were returning 8%, a mobile home park in the same locality was paying 10%, showing that mobile home parks were more profitable. After he saw this phenomenon ringing true repeatedly in other areas across the country, he started researching to discover why they are such a better deal than apartment buildings, office, retail, or self-storage.  His discovery led to investing personally and managing investor’s capital through partnerships over the last 11 years to acquire 25 mobile home parks in 13 states.

His mission is to create wealth for his investors and to expand the supply of affordable housing.

We’ll discuss this fascinating real estate niche that’s providing an opportunity for accredited investors to earn returns in the range of 8 – 15% cash on cash.

The Definition of Accredited Investor

If you may not know what accredited means, here’s a quick definition.  This is an investor with at least $1 Million of net worth, not including the value of their home, or making at least $200K if single, or $300K if married.

We know that a majority of our listeners and audience fall into this category and are actively looking for ways to put their cash to work earning a return in the most productive way.  If you aren’t there yet, this will be an excellent opportunity to expand your knowledge in preparation.

Where Investing Fits into the Cash Flow System

We are a community of wealth creators.  We know that it is not enough to make a great income.  Instead, you have to figure out how to keep more of the money you make, protect your money, and make more through the right investing decisions.  

Investing is part of stage 3 in the Cash Flow System.  As you build a cash-flowing asset portfolio of real estate and business, you accelerate your path to time and money freedom.  

Who Is Jefferson Lilly?

Jefferson Lilly is the founder and managing partner of Park Avenue Partners.  Jefferson is a mobile home park investment expert and educator. He is responsible for Park Avenue Partners’ strategic direction, acquisitions, and property operations. Before founding Park Avenue Partners, he co-founded Park Street Partners, a similar partnership also focused on acquiring mobile home parks nationwide. PSP’s investments are returning 8% – 15% cash annually to Limited Partners; appreciation is expected to increase returns further. 

Both personally and through his partnerships, Jefferson has acquired 25 MHPs in 13 states since 2007 totaling over $56mm in value. He started the industry’s first podcast (Mobile Home Park Investors) and the largest group on LinkedIn dedicated to investing in mobile home parks. 

Before beginning to manage investors’ money in 2014, Jefferson spent seven years investing his own capital in mobile home parks and consulting to high-net-worth families with interests in the manufactured housing industry. Earlier in his career, he held a range of consulting and sales positions with Bain & Company, Viacom, and Verisign. Jefferson has been featured in The New York Times, Bloomberg Magazine, and on the Real Money television show. He holds a B.A. from the University of Pennsylvania and an MBA from the Wharton School of Business. 

Jefferson’s favorite mobile home is the 1954 Spartan Imperial Mansion, upon which their logo is partially based. He finds the Bowlus Road Chief to be pretty appealing too.

Conversation Highlights (Partial Transcript)

What Are the Benefits of Mobile Home Park Investing?

Small Niche and Reasonable Prices

[6:02] First off, just by virtue of there being so few of them.  Nobody knows exactly, but let’s just say that for 100 multifamily apartment buildings out there, maybe 1% of multifamily is mobile home parks. So, it’s just not well known. 

When it’s not well known, the “smart money” isn’t chasing it.  So, prices tend to be more reasonable than for other sexier asset classes, like developing a shiny new office tower in downtown Miami.  

Shrinking Supply Curve

[7:12] Secondly, it is now effectively illegal to build any more mobile home parks.

Nobody knows, but our industry’s best guesses that last year, something like 10 mobile home parks were developed nation-wide. 

We’ve got a major affordable housing crisis going on, and only like maybe 10 parks were built in the last year. And probably hundreds were plowed under and developed into some higher and better use.

The supply curve is not just fixed, the supply chain curve is shrinking inwards. 

There’s no other niche in real estate that I know of where your competition is slowly but surely going away. But that’s one of the other added benefits of mobile home parks.

The Unseen Demographic of Mobile Home Parks

[8:40] 99% of mobile home parks are decent, hardworking people without any significant criminal element.  I’m not saying a crime-free zone, but they don’t really have an unusually higher rate of crime. But they’re viewed that way. 

Also, there are a lot of families in mobile home parks.  Single folks, younger men and women tend to live in apartments, but when they form a family, and they start to have kids, and they want to move out of an apartment building and have their own four walls and be able to park right in front of their house and have a path towards homeownership.

A lot of that demographic moves into mobile home parks.  But the land in a mobile home park is largely not improved. There are roads and pipes, but this is not an apartment building. There aren’t significant improvements to tax. 

You have a city or county government that has a lot of kids going into the school’s district, but they’re not getting a lot of tax revenue off that property.  That’s another reason that the cities have effectively outlawed mobile home parks.  They’ll tinker with the zoning, or they’ll play around with the density, they’ll make it not economical to develop a mobile home park.

Maintenance Costs Are Low

[11:17] Most of our tenants own their own houses. That means that the proverbial leaky toilet and leaky roof repair is all the responsibility of the tenants. It’s not on us as the landlord – the tenants have to do all the repair and maintenance for their home. 

Frankly, when folks are homeowners, they take much better care of their homes.

It’s not that we’re shifting any unusual repair budget on them.  Homeowners take better care of their house so their repair and maintenance will be lower; and therefore, ours is lower. That’s another positive. 

Because they own their homes, they actually tend to not take them with them. They’re too expensive to move.

If they need to leave town, they’ll almost certainly just sell the home off of Craigslist to someone else. And then someone else moves in and begins paying rent.

So as long as that home is economically viable, somebody is going to be paying rent on it.

In our world, the tenant really is the mobile home, it’s the structure, not so much the person in it. Our turnover might be on the rate of maybe 5% a year as some of these homes eventually end of life or move. But compared to apartment turnover, which is generally in the 40% to 50% a year, we’ve got an order of magnitude less turnover.  

That means more stable cash flows and lesser turnover cost.

Park Avenue’s Ownership Model: A Community of Owners

[14:03] We own around 10% of our housing, that is, 10% of the mobile homes. Our properties have about 2200 pads in nearly two dozen mobile home parks nationwide.  Of those homes, we own about 200.

Often, those will come with the park when we buy it. And of course, we want to own those homes, we don’t want them to get pulled out.

If there’s a renter, they can continue to rent.

But when they turn over and that whole home comes back to us vacant at some point, likely over the first two years of owning the park, we’ll then only put it back out on a rent-to-own basis, often for as little as $1,000 down. 

It depends on the age and the value of the house, but on average, folks might then pay $300 a month, for another five or six years, and then they’ll own that house.

We look to build communities of owners. We really want to help. Of course, we’re a for-profit entity, but we do also have a social mission. We want to help people become homeowners.

Once they own the house, some of them do move it out onto their own land. But most people are happy just paying us just a little lot rent for the land. They own that home. They fix it up the way they want, add on a porch, or paint it, and it’s really a win-win for everyone.

We want to be parking lot owners with these very permanent vehicles tied down into our parking spaces. 

But if we can get down to maybe only owning 5% of the homes and be 95% parking lot. That’s still a pretty good return for us.

Geographic Location of the Mobile Home Parks

[17:34] We’re looking wherever the cash flow is, and that tends to be in the Midwest. So far, for the parks that I’ve bought, Wichita, Kansas is roughly our geographic and economic center of gravity.

But that said, we do own coast to coast. I own property up in Spokane, Washington. I’ve got one over in Raleigh Durham, North Carolina, and one down in Lakeland, Florida.

When we can get Midwestern pricing in a coastal state, of course, we’re happy to do that. But probably 85% of our capital has been invested in places like Wichita, Kansas; Dayton, Ohio; Midland, Michigan; and Superior, Wisconsin.  These secondary and tertiary markets that are still economically healthy with a stable demand for affordable housing.

Proximity to a Walmart

Walmart, we think, does pretty good demographic research. And when they’re investing in a super Walmart, we believe, in particular, they’ve done their homework well.  

If you can buy a mobile home park within five miles of a super Walmart, we’ve found that you’ll almost certainly do well.  We don’t need to have a booming economy like out here in Silicon Valley, we just need something stable. Being within five miles of a super Walmart almost certainly means that the economy and the population are stable.

We don’t want to be in places like Toledo, Ohio; Flint, Michigan; or parts of Detroit, where people are really leaving town.  When the economy’s bad and people are leaving, that’s too much of a headwind for us.

Being within five miles of a super Walmart will almost certainly mean that the top line of our business, the revenue line, and the rents will work out. 

Managing Expenses with Public Utilities

Then, you’ve got to watch your expenses. 

The single biggest problem you can have in this business is if you have your own private utilities, like a well, or the bigger risk is that you have your own septic system, sewage lagoon, or packaging plant.  

If something goes wrong with your utilities there, if your well runs dry, or you need to completely redo your method for treating the sewage, that can easily be a six-figure expense. 

For people considering getting into the business for the first time, we say only to buy something where it’s city water and city sewer.  Then you can be fairly assured that at least your expenses will be reasonable. You are much more likely to make money if your revenues are stable, because you’re in a good economy, and you’re on all city utilities.  

Park Avenue Partners’ Goals for the 2019 Fund

Jefferson Lilly

[22:26] With Park Avenue partners, I’m continuing to own and manage parks myself.  My goal is to buy 5 – 10 parks with this fund, and own and operate those ourselves.  For better or for worse, the property operations responsibility buck stops with me.

We’re looking to buy wherever the cash flows.  That will likely be in the Midwest.  We are indeed raising money from accredited investors, and it’ll be probably towards a 10-year fund, although there may be liquidity before then. My offering documents cover greater detail about that.  

SEC Requirements

[23:36] Having to take money only from accredited investors is a requirement put on us by the SEC, it’s not something that we would otherwise do. But in exchange for being able to market my fund widely, the SEC basically says that you can’t be raising money from proverbial widows and orphans.  

Accredited Investor Definition

[24:12] The requirement for being an accredited investor is that you either have a $1 million net worth exclusive of any equity in your house or make a certain income.  An accredited investor makes a minimum of $200,000 per year, if single, or if married, at least $300,000 each year. 

Those are the restrictions that the SEC places on funds like mine, that you can only raise money from accredited investors.

Liquidity of the Investment

[24:49] We’re not planning to sell the properties until the end of the partnership in 10 years. 

This is an SEC requirement that none of our interests can be sold for the first year. But after one year, any of our investors are free to sell their interest in our partnership, either to anybody they might find that would want to buy it or to anybody already invested in our funds.  

That’s why I say the liquidity isn’t necessarily 10 years.  We anticipate selling the properties, hopefully for a profit, in 10 years.  But along the way, if somebody did need their money out, then they can sell their interest, and we are generally happy to help make introductions and help facilitate that.

We are a not a REIT, those are publicly-traded real estate investment trusts.  We are a real estate investment partnership. You can’t just hit the sell key of your Charles Schwab account on your computer, Merrill Lynch or other brokerage account, and get liquid in three days. But at the same time, it’s not completely illiquid either. 

Expected Returns

My previous partnerships have returned between 8% and 15% per year in cash. 

The 15% is obviously at the high end. These partnerships do tend to do better over time, the partnership that is returning only 8% a year still hasn’t fully matured.  For instance, we’ll still have vacant pads, we are bringing in mobile homes and increasing our occupancy, and that’ll still be another couple of years’ worth of work.

We give no guarantees, but that’s been my track record so far.  I think the new fund, Park Avenue Partners, will do almost as well.  I tend to err towards the side of being conservative. Basically, what’s happening in the business is that more people are getting into it, and so prices are increasing. I think what that will mean is that returns will be somewhat lower, but I think between cash and depreciation over that 10-year time horizon, folks should still be compounding their money somewhere between 10% and 15% a year. We believe that will be better than the stock market and most other real estate niches.

Commitment to Charging No Fees

[29:48] This is definitely something that makes me different. I am charging no fees: no acquisition fee, no divestiture fee, no management fee, no personal guarantee fee. 

Even though I put up my house, my two cars, and my own stock portfolio as collateral on some of the mortgages, I don’t charge a fee for personally guaranteeing some of the debt that makes money for my partners.  

I charge no fees whatsoever. This is pure alignment with investor interest. If my investors don’t make money, I don’t.  If my investors do, I do.  

I certainly don’t have an encyclopedic knowledge of all the other funds out there.  But I’ve never heard of a fund that is pure investor alignment and charges, no fees. But that’s what I’m doing.

Park Avenue Partners Investment Process

Capital Raise

[30:43] As far as finance, I’ll raise money from accredited investors, the minimum investment is 50,000.  Of course, there’s no maximum, we’ve had some folks invest upwards of a million dollars with us.  And we’re certainly hopeful to tap into perhaps even some larger pools of capital. But anywhere from 50,000 on up folks can invest. 

Locating and Acquiring the Parks

[31:08] My role then, is to find the parks.  I do run my own podcast called mobile home park investors that helps generate deal flow. That’s not our exclusive way of finding deals, but it is one thing we do and makes us pretty different. My role is to find the deals and then arrange the financing.  

Usually, we borrow between 70% and 75% loan to value. 

We’ve done it all.  We’ve done seller carry, where we’re buying from the person, usually a mom and pop that’s selling us a mobile home park.  We’ve used bank debt.  We’ve gotten CMBS debt, and we’ve gotten agency debt like Fannie and Freddie.  We’ll borrow from any of those sources.  Depending on the deal size, one of those may be better than another, so we’ll be opportunistic and borrow whatever is the best debt for that particular deal.

[32:18] I’m not in Warren Buffett’s League, but I’m basically a long-term buy and hold investor.  I view this as being value investing, we’re just buying cash flows in the real estate market, just maybe not quite 50 cents on the dollar. However, we do look for some discount to what the intrinsic value is, we think. 

Active Investing and Property Improvements

[32:46] And then we do improve the properties.  We’re not passive investors here, we’re active.  

We will, for instance, buy brand new, or sometimes later model used homes and bring those in and set them on vacant pads in our communities. So, we expand the supply of affordable housing. 

We’ll increase our occupancy.  

We will also usually raise rents. 

Then, we will also, for instance, figure out the water system.  A lot of parks are master metered, so the park owner just pays one big $5,000 or $6,000 bill for all the month’s water for all his or her tenants.  We will actually put meters on the houses.  We’ll bill the tenants for water.  They’ll conserve.  Usually, about one-third of their water has been wasted. And then, that’ll help us identify and find leaks between that master meter and those mobile homes, which is on us to repair.

We plug a lot of leaks.  We’ve cut water consumption, in some cases, by 50% in some of our properties. 

It’s nice when what’s right for your pocketbook is also what’s right for the environment.  Just getting a handle on the water system is another thing that we’ll do to improve the profitability of the park.

Due Diligence Process to Find the Best Properties

[34:50] We’ll look at the size of the town, the average house price, which we like to be $100,000 and up. 

If the property passes all those tests and we get it under contract, we’ll then run a test ad, ideally for one of the homes that are already sitting vacant in the park.  We’ll put an ad up on Craigslist and see how much interest we get. 

We’ll then turn those leads over to the owner, so they can follow up and hopefully get somebody in that house even before we buy the property. Running those sorts of test ads also helps us identify definitively how strong the economy is, and that will have implications for how fast we can infill the park with some of those new homes. 

We also do a phase one to bring in an environmental expert to make sure there’s no toxic waste on the property.  

We’ll still go and talk with the local police department and make sure that the park isn’t unusually bad from a crime standpoint.

There’s a long page of diligence items that we look at with each property.

I go on site before buying a property and will also try to meet some of the tenants, as well as the tenants of some competing mobile home parks. I want to understand the dynamics of that park, why tenants like it and live there versus other parks. 

It’s an overall diligence process that typically takes about 30 days to complete.  

If something checks out all the way through, then we go through with the purchase and buy and operate the park.

Timing of Returns

[37:43] Today, I’m focused on fundraising, not on acquisitions. And that’ll probably be for the next quarter. 

Hopefully, towards the end of the first quarter of 2019, I’ll be making some acquisitions.  

Folks could expect some return, starting in another couple of months.  No guarantees, but historically, I’ve always been able to generate returns for investors roughly within the first two to three quarters that the fund is open.  The fund may still be open and raising money, but we will have already made at least a few acquisitions and be returning some amount of money, even while we’re still in fundraising mode. 

Going into that first year after closing the window for investment, then we get the funds fully invested. Again, no guarantees, but I’m thinking my investors should earn cash returns anywhere between 6% and 12% cash.  And then there will be appreciation on top of that, which may have to wait until towards the end of that 10-year hold period.

I think that investors would get, well into the double-digit returns, with a mid-teens type of IRR when you take into account not only the cash that we pay out in the near term, but also the longer-term recognition of profits. There may be some large checks coming back towards year 10 when we get the parks sold.

At the End of the Hold Period 

We may sell those to individuals, we may sell them to some other investment partnership … there is a range of options.  I might buy the parks, we do have a mechanism whereby, if I choose to do that, the investors with me get to pick the appraiser. If it’s a fair price, I might buy out all the investment at that price set by an outside appraiser. I think the odds of that are low, but it’s possible. 

There are several ways to liquidity, so this is not really an illiquid niche.

Investment Options

[43:37] I get a profit split.  The A shares are going to be a 50%/50% split with any investors that buy the A shares.  

The B shares pay a 12% preferred return and then participate in 10% of the additional upside.  

I only get paid if there are profits to split, per those two waterfalls. My investors always come first.

Connect with Park Avenue Partners

Visit Park Avenue Partners to see the most recent projections and offering materials. Investors can buy into the fund only after reading the private placement memorandum, which is also available on the website.

If you would like to learn more, call (415) 228-6900 or email jefferson@parkavenuepartners.com

Several resources are available for you at MobileHomeParkInvestors.com, including the podcast, the investor’s group on LinkedIn, and an industry calendar of events.

The podcast is called Mobile Home Park Investors, which gets about 16,000 downloads per month, and is available on iTunes and Stitcher. 

The mobile home park investors group on LinkedIn is the biggest of its kind, with about 4500 members. 

An industry calendar of events is available for downloading to your calendar, with upcoming trade shows and some earnings calls from some of the publicly-traded mobile home park REITs.   

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

]]> When it comes to seeking out and mastering a profitable niche, Jefferson Lilly, mobile home park investor, is a true leader.  Looking for a stable way to provide value and earn returns, Jefferson began analyzing real estate deals in multifamily housing... When it comes to seeking out and mastering a profitable niche, Jefferson Lilly, mobile home park investor, is a true leader.  Looking for a stable way to provide value and earn returns, Jefferson began analyzing real estate deals in multifamily housing across the Midwest.  What he found was perplexing, but he continued to pursue this path until he found out why.  And he’s glad he did because it led him to his life’s work and his ideal investment niche!  







Where most multifamily apartment buildings were returning 8%, a mobile home park in the same locality was paying 10%, showing that mobile home parks were more profitable. After he saw this phenomenon ringing true repeatedly in other areas across the country, he started researching to discover why they are such a better deal than apartment buildings, office, retail, or self-storage.  His discovery led to investing personally and managing investor’s capital through partnerships over the last 11 years to acquire 25 mobile home parks in 13 states.



His mission is to create wealth for his investors and to expand the supply of affordable housing.



We’ll discuss this fascinating real estate niche that’s providing an opportunity for accredited investors to earn returns in the range of 8 – 15% cash on cash.



The Definition of Accredited Investor



If you may not know what accredited means, here’s a quick definition.  This is an investor with at least $1 Million of net worth, not including the value of their home, or making at least $200K if single, or $300K if married.



We know that a majority of our listeners and audience fall into this category and are actively looking for ways to put their cash to work earning a return in the most productive way.  If you aren’t there yet, this will be an excellent opportunity to expand your knowledge in preparation.



Where Investing Fits into the Cash Flow System







We are a community of wealth creators.  We know that it is not enough to make a great income.  Instead, you have to figure out how to keep more of the money you make, protect your money, and make more through the right investing decisions.  



Investing is part of stage 3 in the Cash Flow System.  As you build a cash-flowing asset portfolio of real estate and business, you accelerate your path to time and money freedom.  



Who Is Jefferson Lilly?



Jefferson Lilly is the founder and managing partner of Park Avenue Partners.  Jefferson is a mobile home park investment expert and educator. He is responsible for Park Avenue Partners’ strategic direction, acquisitions, and property operations. Before founding Park Avenue Partners, he co-founded Park Street Partners, a similar partnership also focused on acquiring mobile home parks nationwide. PSP’s investments are returning 8% - 15% cash annually to Limited Partners; appreciation is expected to increase returns further. 



Both personally and through his partnerships, Jefferson has acquired 25 MHPs in 13 states since 2007 totaling over $56mm in value. He started the industry’s first podcast (Mobile Home Park Investors) and the largest group on <...]]>
Bruce Wehner & Rachel Marshall clean 50:43 Strategic End of Year Tax Moves That Leave You Wealthier – TMA 056 https://themoneyadvantage.com/year-end-tax-moves-leave-you-wealthier/ Mon, 10 Dec 2018 10:00:04 +0000 https://themoneyadvantage.com/?p=3678 As you count down the days until Christmas, you’re also counting down the days you have before you tie up the loose ends on your fiscal year to prepare for 2018 taxes.  We’ll walk you through practical and strategic tax moves you can make to close out the books, stay organized, and save taxes.  This will help you keep more money in your pocket and best plan for next year. There’s lots of information out there. On the one hand, some of the typical advice is so commonplace, it seems like common sense. On the other hand, there may be strategies and options you may not even be aware of yet. This can lead to financial noise, creating confusion, procrastination, and overwhelm.  Instead, we want you face the end of year empowered and proactive. That’s why we’re helping you sift through the information to discover the strategies that align with our community’s core values and principles.  Our filter is an abundance mindset, maximizing cash flow and control, and getting your money to do the most for you. And if you’re feeling like year’s end is a ticking time bomb with so much left to do, use these simple resources as a guide.  You may be able to implement a few changes this year to make a big difference in 2018 taxes.  Better yet, you’ll be armed and dangerous with a head start to make 2019 your best year yet! Customization Required Your situation and needs depend on whether you’re doing your own accounting and hiring out tax preparation, or have an accountant.  In addition, the size and stage of your business, and your plans to scale and grow matter. We recognize that there may be some things that don’t apply to you.  That’s great!  You’ll pick up information that will help you right where you are and also with where you are going. And if you want to consider a shift that would really set you ahead, we have a recommendation for a tax strategist at the end, who may be just what you need to minimize taxes this year and every year going forward. Many of these strategies translate over to your personal life too, where attention and intention help you make huge improvements! One necessary disclaimer: we are not CPAs or tax professionals.  However, we do have them on our team, because tax savings done right is a crucial part of improving our and our community’s lives.  So, make sure you talk with a tax professional about what’s right for you. Where Tax Planning Fits into the Cash Flow System In the Cash Flow System, you first increase cash flow by keeping more of the money you make.  Then, you protect your money.  And finally, you increase and make more money. Tax planning and strategy to increase your cash flow is part of Stage 1, your foundation.  When you keep more of your money, you increase current cash flow.  That is what allows you to build up capital and put it to work in cash-flowing assets, because the ticket to future cash flow from assets is current cash flow from income. Five Hand-Selected Articles to Help You Have Your Best Tax Planning Year Yet Our team has hand-curated five helpful articles to give you the full scope of your end of year closure and preparation.  I’ll share a brief synopsis of each here.  Be sure to check out the podcast for the full discussion. 1) Five Things Business Owners Can Do at Year-End to Lower Their Taxes, by Stephen Fishman, published on NOLO This article covered most of the typical advice you hear about big financial moves to offload cash and raise this year’s deductions. They recommend purchasing business equipment for the deduction and the depreciation, but without a clear caution to not purchase stuff you don’t need. While this seems like it should go without saying, way too many business owners buy a new truck at the end of the year to save taxes, meanwhile bleeding out cash flow in the form of an expense they didn’t need in the first place. The article also suggests funding retirement plans,

As you count down the days until Christmas, you’re also counting down the days you have before you tie up the loose ends on your fiscal year to prepare for 2018 taxes.  We’ll walk you through practical and strategic tax moves you can make to close out the books, stay organized, and save taxes.  This will help you keep more money in your pocket and best plan for next year.

There’s lots of information out there. On the one hand, some of the typical advice is so commonplace, it seems like common sense. On the other hand, there may be strategies and options you may not even be aware of yet.

This can lead to financial noise, creating confusion, procrastination, and overwhelm.  Instead, we want you face the end of year empowered and proactive.

That’s why we’re helping you sift through the information to discover the strategies that align with our community’s core values and principles.  Our filter is an abundance mindset, maximizing cash flow and control, and getting your money to do the most for you.

And if you’re feeling like year’s end is a ticking time bomb with so much left to do, use these simple resources as a guide.  You may be able to implement a few changes this year to make a big difference in 2018 taxes.  Better yet, you’ll be armed and dangerous with a head start to make 2019 your best year yet!

Customization Required

Your situation and needs depend on whether you’re doing your own accounting and hiring out tax preparation, or have an accountant.  In addition, the size and stage of your business, and your plans to scale and grow matter.

We recognize that there may be some things that don’t apply to you.  That’s great!  You’ll pick up information that will help you right where you are and also with where you are going.

And if you want to consider a shift that would really set you ahead, we have a recommendation for a tax strategist at the end, who may be just what you need to minimize taxes this year and every year going forward.

Many of these strategies translate over to your personal life too, where attention and intention help you make huge improvements!

One necessary disclaimer: we are not CPAs or tax professionals.  However, we do have them on our team, because tax savings done right is a crucial part of improving our and our community’s lives.  So, make sure you talk with a tax professional about what’s right for you.

Where Tax Planning Fits into the Cash Flow System

Money Finder

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

Tax planning and strategy to increase your cash flow is part of Stage 1, your foundation.  When you keep more of your money, you increase current cash flow.  That is what allows you to build up capital and put it to work in cash-flowing assets, because the ticket to future cash flow from assets is current cash flow from income.

Five Hand-Selected Articles to Help You Have Your Best Tax Planning Year Yet

Our team has hand-curated five helpful articles to give you the full scope of your end of year closure and preparation.  I’ll share a brief synopsis of each here.  Be sure to check out the podcast for the full discussion.

1) Five Things Business Owners Can Do at Year-End to Lower Their Taxes, by Stephen Fishman, published on NOLO

This article covered most of the typical advice you hear about big financial moves to offload cash and raise this year’s deductions.

They recommend purchasing business equipment for the deduction and the depreciation, but without a clear caution to not purchase stuff you don’t need. While this seems like it should go without saying, way too many business owners buy a new truck at the end of the year to save taxes, meanwhile bleeding out cash flow in the form of an expense they didn’t need in the first place.

The article also suggests funding retirement plans, which has significant limitations on the control of your capital, and potentially raises your future tax burden by rolling it forward to a time when tax rates may actually be higher.  And as they recommend selling losing stocks, it seems as though they assume all people own stocks, leaving out those of us who would rather stick with certainty.

They do propose opening an HSA and donating to charity, both of which can be very advantageous moves, if you’re aware of the limitations.

HSA’s are one of the only ways to get an above-the-line deduction, and still be able to use the money tax-free.  Just make sure it’s paired with a high-deductible health plan. And check out the podcast for one great recommendation for funding it to make sure you get the full advantage.

Then, donations to charity can only be deducted if you itemize deductions, not if you claim the standard deduction.  And make sure you’re doing it for a cause you’re passionate about, not just for the financial benefit.

2) 6 Tax Tips for Small Business Owners, a Merrill Lynch article

Here, we find a helpful article chock-full of suggestions to bring to your tax professional for lowering this year’s tax. There are a few similarities to the previous article, and some status quo advice that doesn’t fit our model of cash flow and control, but there are some great gold nuggets here.

They discuss the 20% deduction for flow-through entities and suggest considering a change in your entity type to a C corp to take advantage of the lower corporate tax rate of 21%.  But they fail to mention the double-taxation of the C corp structure that raises your total tax.

This article nicely mentions something we all know, but many don’t do: plan ahead for the tax bill.  Whether you’re setting aside reserves or pre-paying quarterly estimates, don’t approach April (or October if you file an extension) like you didn’t realize taxes were an eventuality.

You’re getting a very similar conversation about retirement plans, equipment deductions, and charitable contributions.

The gold nugget is a powerful tip to strategically defer revenue and accelerate expenses, or vice versa to bump income from one year to the next, or from next year into this year, to moderate expected revenue, tax bracket, or tax rate shifts.

3) End of the Year Checklist for Small Business Owners, by Trailhead Accounting Solutions

Tax Strategy

This article is a very nicely done, practical checklist for all of the accounting needs at the end of the year to wrap it up, tie it with a bow, and move into the new year without anything hanging over your head.

They discuss reconciling your accounts between your bank statements and accounting software, addressing any “wacky” looking accounts and moving everything out of the infamous “Uncategorized” category.

Then, clean up accounts payable and accounts receivable, and take physical inventory.

They wisely recommend scheduling a meeting with your CPA before tax season but sell it on the basis of saving tax prep fees, rather than on the merit of strategically planning ahead, which I believe, is much greater incentive.

Then, you get a nice reminder to send out 1099s, and a list of accounting statements to print out and hold for your records.  The article then concludes with budgeting and forecasting growth and considering hiring a fractional CFO.

For the accounting-challenged, this article is like a GPS to tell you the next steps to take, giving you the confidence to move forward gracefully.

4) An End of Year Checklist for Small Business Owners, by Cristina Garza, published on Accountingprose

In this article, you get most of the accounting to-do list of the previous article, in a quick-read version, with a bonus printable checklist.  The steps are broken down, as if you had a professional sitting down with you and walking you through what to do, step by step.

First, you’ll save a copy of your financial statements.

Then, you’ll go through your income statement to check multiple areas for completeness and accuracy.  You’ll walk through unidentified transactions, how to ensure payroll is accurate, and how to fix the common mistake of accidental personal purchases on the business account and vice versa.

Next, you’ll review your balance sheet for accuracy, including ending account balances, depreciation, and payroll.

Then, you’ll find your list of forms to file.

Finally, you’re ready to set your plans and goals in place for next year.

With that complete, you get a next year’s checklist to stay organized in the coming year to relieve the stress you may have felt this year as you went through the process.

And huge plus, you get a checklist that you can use as a guide as you execute each step.

5) These 3 Simple Year-End Tax Moves Give Big Results to Small Business Owners, by Garrett Gunderson, Wealth Factory

We left the icing on the cake for last. This article by Garrett Gunderson comes from a like-minded, abundance-focused professional who really walks his talk, so here are recommendations that you can implement with a great conscience.  It’s also surprisingly detailed, offering enough information to give you confidence to move forward.

The first strategy discussed is to defer income and accelerate expenses when moving into a new year where taxes are going down. He provides an understanding of what this actually means, when you can’t use this strategy, and the timing required on postmarking the payments that determine which year will get the credit.

He then gives full disclosure on how to get instant depreciation up to $1M for new or used business equipment through with Section 179, and the bonus depreciation of 100%.  And he articulates with clarity that you should never make purchases you don’t need.

Lastly, he strongly advises to get a second opinion on your taxes to see what your regular CPA or tax preparer missed.  He shares actual stories where he or a client discovered where they had overpaid on taxes, filed an amended return, and received a check back from the IRS!  In one case, the return was over $55K.  In another situation, someone went from owing an extra $2,750, to receiving a $2,702 refund check, a net gain of $5,452.

It’s the perfect reason to be proactive with your tax planning and strategy to make sure you are paying the least legal tax, this year AND every year going forward.

Top Tax Moves Discussed

To boil down the whole show and condense all the articles, here’s the best steps to take before the end of the year that will help you save taxes and grow wealthier:

  • Get the deduction of up to $1M, and 100% bonus depreciation for buying new or used business equipment, that you need. Don’t make purchases you don’t need, even if you’ll save some tax.  An expense uses up proportionately more cash flow than the expense’s deduction will save in tax.  Don’t buy equipment you don’t need, no matter how much tax it will save you.
  • Push out receiving payments into next year, or pre-pay some of next year’s expenses, as tax rates will be lower next year.
  • Consider an HSA (health savings account) to get an above-the-line deduction AND be able to take it out tax-free for out-of-pocket medical expenses. To maintain as much control of your cash as possible, you can wait until you have a payment to make, and then put the cash into the HSA.  Then, you eliminate the risk that you put money in and can’t use it for something else, but you’ll still get the excellent tax treatment.
  • Charitable donations are an excellent way to marry meaningful, social responsibility with a tax deduction, or even a tax credit. But if you claim the standard deduction, you won’t be able to write off charitable giving.  You’ll see a true tax advantage only if you deduct more than $24K for married-filing-jointly, or $12K for single filers.
  • Get a second opinion on your taxes to check areas you might have overpaid in the last three years. There may be changes you haven’t even thought of that put more of your money back in your pocket.

Get A Second Opinion on Your Taxes, and Recover Overpayments Up to Three Years Back

We promised our own recommendation for a tax strategist, and here it is!  If you would like to see how these ideas could work for you to permanently reduce your tax, talk with our tax team at Incite Tax and Accounting.

They’ll help you strategize to best prepare not only this year, but every year going forward.

They’re busy strategizing with their clients, so they may not be able to fit you in until early next year.  However, it’s never too early to start making sure next year is off on the right foot!

If you’d like to hear more conversations about permanent tax reduction and tax reform, check out both of these podcasts with the Incite Tax team.

Book a Call to Find Out How To Accelerate Your Time and Money Freedom

Contact us to find out the one thing you should be doing today to optimize your personal economy and accelerate time and money freedom.  When we talk, you’ll also find out how tax planning could help you reach your goals easier and faster.

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

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As you count down the days until Christmas, you’re also counting down the days you have before you tie up the loose ends on your fiscal year to prepare for 2018 taxes.  We’ll walk you through practical and strategic tax moves you can make to close out ... As you count down the days until Christmas, you’re also counting down the days you have before you tie up the loose ends on your fiscal year to prepare for 2018 taxes.  We’ll walk you through practical and strategic tax moves you can make to close out the books, stay organized, and save taxes.  This will help you keep more money in your pocket and best plan for next year.



There’s lots of information out there. On the one hand, some of the typical advice is so commonplace, it seems like common sense. On the other hand, there may be strategies and options you may not even be aware of yet.



This can lead to financial noise, creating confusion, procrastination, and overwhelm.  Instead, we want you face the end of year empowered and proactive.



That’s why we’re helping you sift through the information to discover the strategies that align with our community’s core values and principles.  Our filter is an abundance mindset, maximizing cash flow and control, and getting your money to do the most for you.



And if you’re feeling like year’s end is a ticking time bomb with so much left to do, use these simple resources as a guide.  You may be able to implement a few changes this year to make a big difference in 2018 taxes.  Better yet, you’ll be armed and dangerous with a head start to make 2019 your best year yet!







Customization Required



Your situation and needs depend on whether you’re doing your own accounting and hiring out tax preparation, or have an accountant.  In addition, the size and stage of your business, and your plans to scale and grow matter.



We recognize that there may be some things that don’t apply to you.  That’s great!  You’ll pick up information that will help you right where you are and also with where you are going.



And if you want to consider a shift that would really set you ahead, we have a recommendation for a tax strategist at the end, who may be just what you need to minimize taxes this year and every year going forward.



Many of these strategies translate over to your personal life too, where attention and intention help you make huge improvements!



One necessary disclaimer: we are not CPAs or tax professionals.  However, we do have them on our team, because tax savings done right is a crucial part of improving our and our community’s lives.  So, make sure you talk with a tax professional about what’s right for you.



Where Tax Planning Fits into the Cash Flow System







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



Tax planning and strategy to increase your cash flow is part of Stage 1, your foundation.  When you keep more of your money, you increase current cash flow.  That is what allows you to build up capital and put it to work in cash-flowing assets, because the ticket to future cash flow from assets is current cash flow fr...]]>
Bruce Wehner & Rachel Marshall clean 58:29
Privatized Banking: High Cash Value and Long-Term Growth – TMA 055 https://themoneyadvantage.com/high-cash-value-long-term-growth/ Mon, 03 Dec 2018 10:00:53 +0000 https://themoneyadvantage.com/?p=3610 A typical whole life insurance policy won’t give you the high early cash value and long-term growth you need for Privatized Banking.  As enticing as its certainty and control are to wealth creators, it’s not enough.  You’ll need enhancements to convert your policy from a slow equity-builder into one that you can use quickly.  Policy modifications are like custom upgrades on a standard model floorplan when you’re building a house.  These design features make all the difference between an accumulation plan, and one you can actually use. In What Kind of Policy Do You Want, Part 1, we discussed the key elements: a dividend-paying whole life insurance contract with a mutual company that has guaranteed premiums, guaranteed cash value, and a guaranteed death benefit.  Now it’s time to step it up a notch. High cash value up front and long-term performance are highly achievable when you design the policy in a specialized way. This custom design includes specific funding ratios and high-performance custom modifications to a whole life policy. Why You’re Shopping for a High Cash Value Policy Why are you looking for a life insurance policy with high early cash value and long-term growth? You want to secure the advantages of safety and liquidity of your money while maximizing your growth rate.  Your cash value won’t drop in value, and you can access it through policy loans.  Because of this, you know that whole life insurance is an ideal place to store cash, allowing you to be the bank. You’re also grateful for the peace of mind that the death benefit offers.  You are purchasing a net worth that will automatically self-complete when you die, even if you don’t get to live out your wealth creation. But rather than just setting it and forgetting it, you plan to use your life insurance policy while you’re alive.  You want to use your capital along the way to invest in cash-flowing projects to accelerate your wealth creation in a process known as Privatized Banking.  Instead of giving up cash each time you purchase another asset, you maintain control of your capital.  Consequently, you reap the miracle of compound interest and earn a return in two places at the same time. This is why it’s important that you don’t just get a policy that builds cash value at some point.  You want access to lots of cash value very early on in the policy.  Today’s article will show you how that is possible. What We’ll Cover Today, we’ll show you how we fine-tune a life insurance policy to get it to peak performance.  This is the secret sauce behind a Privatized Banking policy.  It’s how we dress up a typical life insurance policy and transform it into the superhero version. We’ll answer: What makes the policy specially designed? How do I build up cash value quickly to invest in opportunities? What do I need to know so I'm not sidetracked with minor details?  How do I make sure the policy fits me, personally? We’ll reveal the design of the ideal life insurance policy that serves you best right away, and for decades to come. You’ll learn the three components of a Privatized Banking policy, what each achieves, how they work together, and the ideal funding ratio for high early cash value AND long-term growth.  You’ll gain the framework to find a policy that’s sturdy enough to drive it hard and still last a lifetime. And, you’ll know how to get a built-in contingency plan to gracefully handle the unexpected, expanding the infinite capacity of this policy to serve you. We’ll also show you why some of the more technical elements that are often most talked about are relatively insignificant. You’ll see why they are a distraction, and instead gain the ability to focus on what matters most. Also, because life insurance doesn’t come as a one-size-fits-all, we’ll discuss the individualized element of life insurance. You may need changes, based on underwriting, health status, age, financial situation, and objectives. A typical whole life insurance policy won’t give you the high early cash value and long-term growth you need for Privatized Banking.  As enticing as its certainty and control are to wealth creators, it’s not enough.  You’ll need enhancements to convert your policy from a slow equity-builder into one that you can use quickly.

Policy modifications are like custom upgrades on a standard model floorplan when you’re building a house.  These design features make all the difference between an accumulation plan, and one you can actually use.

In What Kind of Policy Do You Want, Part 1, we discussed the key elements: a dividend-paying whole life insurance contract with a mutual company that has guaranteed premiums, guaranteed cash value, and a guaranteed death benefit.  Now it’s time to step it up a notch.

High cash value up front and long-term performance are highly achievable when you design the policy in a specialized way. This custom design includes specific funding ratios and high-performance custom modifications to a whole life policy.

Why You’re Shopping for a High Cash Value Policy

Why are you looking for a life insurance policy with high early cash value and long-term growth?

You want to secure the advantages of safety and liquidity of your money while maximizing your growth rate.  Your cash value won’t drop in value, and you can access it through policy loans.  Because of this, you know that whole life insurance is an ideal place to store cash, allowing you to be the bank.

You’re also grateful for the peace of mind that the death benefit offers.  You are purchasing a net worth that will automatically self-complete when you die, even if you don’t get to live out your wealth creation.

But rather than just setting it and forgetting it, you plan to use your life insurance policy while you’re alive.  You want to use your capital along the way to invest in cash-flowing projects to accelerate your wealth creation in a process known as Privatized Banking.  Instead of giving up cash each time you purchase another asset, you maintain control of your capital.  Consequently, you reap the miracle of compound interest and earn a return in two places at the same time.

This is why it’s important that you don’t just get a policy that builds cash value at some point.  You want access to lots of cash value very early on in the policy.  Today’s article will show you how that is possible.

What We’ll Cover

Today, we’ll show you how we fine-tune a life insurance policy to get it to peak performance.  This is the secret sauce behind a Privatized Banking policy.  It’s how we dress up a typical life insurance policy and transform it into the superhero version.

We’ll answer:

  1. What makes the policy specially designed?
  2. How do I build up cash value quickly to invest in opportunities?
  3. What do I need to know so I’m not sidetracked with minor details? 
  4. How do I make sure the policy fits me, personally?

We’ll reveal the design of the ideal life insurance policy that serves you best right away, and for decades to come.

You’ll learn the three components of a Privatized Banking policy, what each achieves, how they work together, and the ideal funding ratio for high early cash value AND long-term growth.  You’ll gain the framework to find a policy that’s sturdy enough to drive it hard and still last a lifetime.

And, you’ll know how to get a built-in contingency plan to gracefully handle the unexpected, expanding the infinite capacity of this policy to serve you.

We’ll also show you why some of the more technical elements that are often most talked about are relatively insignificant. You’ll see why they are a distraction, and instead gain the ability to focus on what matters most.

Also, because life insurance doesn’t come as a one-size-fits-all, we’ll discuss the individualized element of life insurance. You may need changes, based on underwriting, health status, age, financial situation, and objectives.

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.Privatized Banking

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.

Funding a Privatized Banking Policy

Funding a life insurance policy is a lot like capitalizing a bank.  You first put money in, then you’re able to use and grow it.

The money you put into life insurance is called premium.

Because the word premium tends to associate with the cost of something, it’s an unfortunate word choice.  It’s more helpful to think of your premium dollars as “deposits” that you put into your banking system. (Although I must point out that state laws prevent us from using the word “deposits” and “premiums” interchangeably.)

The Teeter Totter Effect Between High Early Cash Value and Long-Term Growth

High Early Cash Value

Cash value, like home equity, is the portion of the death benefit that you have access to use.  For all whole life policies, the cash value will equal the death benefit at the age of endowment, usually age 121.

However, policies have different rates of accumulation along the way.

Some policies start out with a lot of cash value up front, and other policies have little cash value in the early years.

For Privatized Banking, you want to come out of the gate with a lot of cash value, and not have to wait years for the trickle to amount to something.

High early cash value is the liquidity of the dollars that you put into the policy.

You could think of this like putting money into the bank. You deposit $50,000 into your local checking account, and almost immediately, you have access to write checks against the account, or cash out a value of up to the full $50,000.  Money in a checking account is generally 100% liquid and available.

However, some whole life policies have a slow cash value accumulation.  If the cash value were illustrated on a graph, you’d see a very shallow angle at the beginning, with liquidity in the range of 0% in year 1, before cash value eventually rises to meet the death benefit.  This would mean that your cash is not very liquid up front.

Other whole life policies accelerate the cash value up front, starting off with 50 – 70%+ liquidity in year 1, with the cash value continuing to rise over time.

So, one of our ultimate goals in policy design is to deliver as much liquidity as possible right away.

Long-Term Growth

Another, equally important goal in policy design is to deliver the highest long-term growth rate.

Long-term growth is the internal rate of return of your cash value and death benefit over time, compared to the dollars that you put in.

For instance, if you put a total of $500,000 into an account, and in 30 years, the account total is now $750,000.  The rate of return was approximately 1.36%.

With a life insurance policy, growth is a direct byproduct of interest and dividends.  Dividends are the declared profits of the company that are distributed to policyholders in a mutual company.

Maximizing Both Liquidity and Growth

Within a whole life policy, liquidity and growth usually have an inverse relationship.  Like on an old-fashioned teeter-totter, when one goes up, the other goes down.

To have greater liquidity, you give up growth. To maximize your growth, you’ll often sacrifice liquidity.

On the one hand, you could fund a policy in such a way to produce maximum long-term growth, but give up access to your capital by accepting a slower cash value accumulation.

On the other hand, you could opt for maximum up-front liquidity – access to almost all of the money you put in – and experience a lower growth rate over time.

This tension causes us to seek and find the balance point that maximizes both benefits: the maximum cash up front and the most growth over time.  The way to get both liquidity and growth is in the special design of the funding structure.

Three Types of Premium and What Each Does Best

There are three types of premium you can put into a whole life policy.

Each type accomplishes a different purpose and impacts the death benefit, cash value, and dividends differently.

And, like a perfect combination of art and science, the levels of each can be adjusted to achieve different objectives.

Base Premium

The first type of premium is called the base premium.  This is the primary premium in a whole life policy.  It establishes the death benefit, which will be different for each person based on their age, gender, and habits.  Habits include lifestyle activities, career choice, health choices, genetics Base Premium AND Paid-Up Additionsand their resulting conditions.

For two people who each put $100,000 of base premium into their own policies, a different death benefit will be set for each, depending on their unique age, gender, and habits.  These individual factors are taken into consideration by underwriting, which assigns a rating based on actuarial data of life expectancies.

Base premium secures a lot of death benefit and the highest long-term growth through dividends.  (We’ll go into more depth about this later on in this article.)  However, base premium provides very little access to cash value up front.

You can think of base premium as buying a house.  Similar to paying mortgage payments to buy the house over time, base premium is buying the death benefit by making recurring payments.  Over time, just like you build equity as you pay off a house, base premium builds cash value slowly.

This is the driving reason why so many people believe that whole life insurance takes forever to build cash value.  Many standard whole life policies are designed with all or mostly base premium, ramping up the death benefit, but giving access to very little cash value up front.  With this design, there may be no cash value at all in the first year, and it can easily take 15-20+ years to really see significant cash value accumulation.

Paid-Up Additions Rider

The second type of premium inside a whole life insurance policy is called paid-up additions (PUAs).

PUAs are a rider that allows you to put in more cash to accelerate the cash value.  While PUAs do buy additional death benefit, they buy very little in contrast to base premiums.

Paid up additions are premium payments you make to the insurance company that completely pay for a certain amount of death benefit.  This means that for that portion of the death benefit, no more premium is due – it’s fully paid up.

The benefit of using PUAs is that almost all of the cash you pay into the policy through PUAs becomes immediately available as cash value.

Back to our real estate purchase example, you can think of PUAs as having bought a house, garage, or rental property.  It’s fully paid for, with no future mortgage payments due.  Like a house that’s paid for, free and clear, you immediately max out your equity.

Whereas with base premiums, the cash value grows slowly over time, with PUAs, the cash value, or equity, is readily available.

Why PUAs Aren’t Superior to Base Premium

You may think, why not fund a policy with PUAs, and skip base premium altogether?  Too much PUA’s and you turn your policy into a Modified Endowment Contract (MEC), losing your tax advantages.  Secondly, you don’t want to overlook the value of having a robust death benefit equal to your human life value.

Term Rider

While base premiums and PUAs make up the majority of your premiums, there’s one more type of premium that we need to discuss: the term rider.

As with the PUA rider, we are discussing a rider, which is an addition onto your whole life policy, not a separate policy.  This rider provides term insurance inside of the whole life policy to boost the death benefit to satisfy the MEC rules.

Remember the Modified Endowment Contracts we’ve discussed briefly in What Kind of Policy Do You Use?  The MEC rules are a set of actuarial rules that the IRS has placed on all cash value life insurance contracts.  These rules require a certain death benefit to premium ratio for the policy to grow tax-advantaged.  If your policy falls outside those rules during both a 1-year and a 7-year test, any growth above your cost basis (total premiums) will be taxed. There are occasions where what’s known as MEC’ing a policy is intentional, but for most purposes, you want to maintain the tax-advantaged growth.

To bump up the death benefit to satisfy the MEC rules, we may increase the death benefit for the short-term with a term rider.

This rider does have a cost.  However, the cost is minimal to add significant death benefit. And, it’s worth it to pay for the peace of mind that you’ll continue to grow your money tax-advantaged.  It’s also preferable that your term rider is convertible.

Like with all term insurance, this portion of the policy is like renting insurance.  You’re borrowing the death benefit for a timeframe. After that timeframe, the premium discontinues, and that portion of the death benefit expires.

The term rider prevents the policy from MEC’ing, allowing you to maintain your tax-advantaged growth of the entire policy throughout its lifetime.

The Balance Between Base Premium and PUAs

To get the maximum cash up front and the most growth over time as well, we must find the right balance of premiums.  Our goal is to find the ideal ratio between base premium and paid-up additions.  The ratio between the type of premium you pay ensures you’re able to have your cake and eat it too.

If we build a policy with mostly base premium, you’ll get the highest death benefit and best long-term accumulation of equity, but you’ll give up control and access to your money up front.

If we build a policy with mostly PUAs, you’ll get maximum liquidity because of the immediate accumulation of equity, but you’ll give up death benefit and growth.

The Impact of Premium Type on Dividends and Long-Term Growth

Earlier, we said that base premium increases the performance of the policy over time, due to dividends.  Let’s talk a bit more about why that is the case.

How Dividends Impact Your Growth

Remember that dividends are part of the non-guaranteed part of a life insurance contract.  On a policy illustration, you’ll see two sides, one for the guaranteed values, and the other for the non-guaranteed performance.

The guaranteed portion will show the cash value growth, based on interest only.  This is the minimum contractual value you’ll get if you fund the policy as illustrated.

The non-guaranteed side will show the dividends being added to the policy as well, based on the current dividend rate for that company.  When dividends are added to the guaranteed cash values, you get the non-guaranteed cash values.

Although dividends are not guaranteed, the companies we work with have declared dividends every year for at least the last 100 years (one has done so for at least 170 consecutive years), even throughout the Great Depression and the Great Recession.

Because of this track record of consistency, we say that they are highly likely to be paid in the future.

The Relationship Between Premium Type and Dividends Paid

Refer back to the last article in the series for a greater analysis on how dividends are derived and declared.

Once declared, dividends are applied to individual policies using a complicated algorithm.  You get more dividends on your base policy than you do on your PUAs.  Another way to think about this is that the insurance company doesn’t pay as high a dividend on the highly liquid part of the policy.

Once distributed, dividends are part of the guaranteed cash value.  This sets a new floor so that cash value will never fall below that water line again in the future.

Consequently, dividends are an important part of the overall performance of your policy over time.

The Ideal Funding Ratio

Through decades of experience and writing thousands of policies, as well as modeling the best design structure we’ve learned from the Nelson Nash Institute that pioneered the Infinite Banking concept, our team has found that equilibrium point.

In general, the ideal funding ratio for a specially designed life insurance policy is 33% base premium, to 66% PUA, with a 1% term rider. This design gives you access to cash early, without compromising the ability for the policy to grow.

For example, if I have $100K/year to fund a policy, $33K will be used for base premium, $66K for paid-up additions, and $1K for the term rider.  This policy would then, dependent on underwriting, provide access to about 60 – 70% of the first year’s premium within 30 days.  After allowing time for the check to clear and the policy to be delivered, I would have access to between $60K – $70K that I could use in other cash-flow projects.

Custom Design Is More Important Than the Formula

That being said, there isn’t a magic formula.

The ideal ratio fluctuates from company to company, and between various products.

If more protection is needed early, you may want more base premium.  And yes, you’d give up some liquidity with that decision.  It’s also possible to use a different product that enhances the death benefit in a different way, where a 50/50 or 60/40 split might be more advantageous.

This is why it’s crucial to work with someone who has significant experience.

Rather than being beholden to a specific formula, it’s more important that your advisor understand your needs and goals.  They will be able to recognize the benefits you need first and then design the product around that.

Then you, the owner of the Privatized Banking system, will get exactly what you need to accomplish your life goals and maximize your money.  If your advisor knows nuances of policy design like the back of their hand, it will be second-nature for them to custom tailor a policy that’s exactly suited to you.

High-Performance Modifications

In addition to the funding ratios, other options play a key role in maximizing your policy’s performance and versatility.

Dividend Options

You have multiple options for how you choose to receive dividends once they are paid.

You can use them to pay future premiums.  Another option is to have the dividend sent to you as a check in the mail, as passive income.   Or, you can direct the dividends to purchase more paid-up additions or more death benefit in the future.  And finally, you could set dividends to simply accumulate into the cash value, without purchasing more PUAs.

To have the greatest impact on your long-term performance, we usually recommend opting for your dividends to purchase additional paid-up insurance.  This helps you grow your cash value quickly.  It also increases your overall death benefit, which helps you accumulate more dividends in the future.  Rolling dividends back into your policy by buying more paid-up additions gives you the full advantage of compound interest.  You’re taking the existing policy plus the dividend, lumping them together, and then earning future dividends on the whole.

Waiver of Premium

Waiver of premium is an additional rider you can purchase, that improves your future options.  With the waiver of premium rider, in the event of disability, the insurance company will continue to fund your policy.

There are lots of options in the way this rider is executed, offering a great deal of flexibility.  One option might pay future base premium only and not PUAs.  You can also add waiver of premium to a term life insurance policy, sometimes with an option to convert to a permanent policy of the owner’s choosing, at the time of disability.

We almost always recommend this rider as well.

The rider does come with a cost, but the peace of mind is well worth the price tag.

We often think of life insurance as being for when we transition from natural life to eternal life.  But life insurance can also serve us tremendously if anything slows us down in the meantime.  This provides relief and options for those who suffer through a disability before death. If you lose income due to disability, you will maintain the guaranteed cash value and death benefit, without being concerned about how to fund the policy when you don’t have the cash flow to do so.

Break-Even Years

As we’ve discussed liquidity timeframes, you may be wondering, at what point do I have access to all of the money that I’ve paid into the policy?

While this timeframe will vary from policy to policy, there are general expectations for a specially designed policy.

There are two break-even points I’d like to illustrate.

The first break-even point looks at a single-year window.  This is the year that your cash value increases by more than you’ve paid in premium in that year. This usually happens around year 3 to 5.

The second break-even point accounts for the cumulative premium you’ve paid over all of the policy years combined.  This is the year that your total cash value exceeds the total premiums from all of your policy years combined.  This usually happens somewhere between years 5 – 9, but may fall outside that window.

For example, here are the actual numbers from a specially-designed policy illustration for a 42-year old female in excellent health.Break Even Years Whole Life

You’ll notice that the first single-year break-even point happens in year 4.  In that year, she puts $30,000 into the policy, and her cash value increases by $31,604 in that year.

The second cumulative break-even point happens for this policy in year 6.  Here, the policy has been funded with a cumulative $180,000, and the total cash value is $183,633.

For this scenario, we do use non-guaranteed values, because it accounts for the more realistic future values based on highly anticipated dividends.

In both cases, after the break-even point occurs, all future cash value is upward growth that you can access.

Non-Negotiables vs. Minor Details That Cause Confusion

When it really comes down to the essentials, here’s what’s not negotiable in getting your life insurance policy:  Make sure you have guarantees.  You need to have your policy with a strong, reputable company. And it’s critical to fund it in a way to maximize early cash value and long-term growth.

Don’t get swept up in the petty dialogues that major in the minors.  Here are a few you should know about, and why they aren’t really that important.

Dividend Rates

If you compare two life insurance illustrations from different companies, chances are, one of them will show higher dividends.  But just because illustrated dividends are higher this year doesn’t mean that they will stay higher over time.

Illustrations show this year’s dividend rate, projected out every year over the performance of the policy as a portion of the non-guaranteed policy growth.  The actual dividend paid out each year fluctuates.  It doesn’t map directly to the projections because it is based on real-time company profits.  Some companies have a long history of falling within dollars of their forecasts.  Other companies miss their projections by hundreds or thousands of dollars per year.  The illustrated dividend isn’t a perfect picture of how the policy will perform.

In addition, one company may illustrate higher dividends this year compared to another company.  But the following year, they may switch roles.  Over time, these calibrations average out among the A-player insurance companies.  Over time, dividends will be very similar from company to company.

The fact is that all good insurance companies protect your money and require contractual guarantees into the future.  Because of their 100% reserve requirement, they must have money in reserve to pay out the death benefit and loan requests.

Rather than comparing dividend rates to determine which company to use, focus on the access and control of your money.

Direct and Non-Direct Recognition

One of the best ways to access your cash value is to take a loan against your cash value.  You use your cash value as collateral and keep your money compounding and growing with dividends and interest.

Life insurance companies have two different ways of treating loans against your cash value when they pay you a dividend.

Non-direct recognition companies do not recognize a loan when paying a dividend.  They always pay the same dividend rate whether you have loans against the policy or not.  You may have $100K of cash value with no loans.  Or, you may have the same policy with an $80K outstanding loan and access to only $20K.  In either case, the full $100K receives the full dividend, whether or not you have an outstanding loan.

In a direct recognition company, you receive a higher dividend on available cash value, and a lower dividend on the portion you’ve borrowed against.  So, if you had $100K of cash value, with the $80K loan against the policy, you may receive a 6% dividend on the available $20K, and a 5% dividend on the $80K.

Non-direct recognition companies will often show a lower dividend rate than direct recognition companies.  However, the non-direct company will uphold the same rate no matter how much you utilize your policy.  On the other hand, direct recognition companies will often illustrate and show a past history of paying out slightly higher dividends but will bump it down for the portion of your cash value you’ve leveraged.

So, which is best?

Don’t worry about hair-splitting here.  If you plan to utilize your policy, over time, both types average out to about the same position.  It’s much more important to look at the other attributes of the company you’re doing business with.

In Conclusion

We’ve covered a lot of ground, but here’s the cliff notes version:

To get the most cash value early, and still maximize the internal rate of return of your money over your lifetime, you need a specially designed policy.  This policy starts with a dividend-paying whole life policy with a reputable mutual insurance company.  It’s then designed with a mix of base premium, paid-up additions, and a term rider to accelerate your access to cash value up front.  And you’ll want to add the waiver of premium rider to ensure your policy will self-fund in the event of a disability.

This way, you can use your policy right away and maximize your policy’s performance over time.

Specially designed insurance is the solid foundation that you need to be able to maximize the Privatized Banking function of the policy to invest in other assets for cash flow and accelerate your path to time and money freedom.

And no matter how good a product or design may be, there’s no “one-size fits all.”  Modifications and alterations are needed, depending on your age, health, the way you want to utilize your policy, the length of time you want to fund the policy, and how much premium you have to put into your Privatized Banking system.

This is the reason you shouldn’t try to DIY and educate your life insurance agent.  Make sure you are working with someone who already understands what you want to accomplish and can best help you achieve long-term success.

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 get a policy that you can use.  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.

If you’re wishing you knew this a long time ago, and you already have a different type/design of life insurance, don’t worry.  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 guide: Privatized Banking – The Unfair Advantage.

Every person’s story, path, journey, and outcomes are different.  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.

You might have great income, but limited cash flow, and need to free up cash flow first.

Or, if you’re already saving each month, you may want to get higher, tax-exempt growth, and greater accessibility.  We can help you determine how to implement this strategy to improve every area of your financial life.

No matter where you are today, book a Strategy Call with us to find out the one thing you should be doing next 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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A typical whole life insurance policy won’t give you the high early cash value and long-term growth you need for Privatized Banking.  As enticing as its certainty and control are to wealth creators, it’s not enough. 
Policy modifications are like custom upgrades on a standard model floorplan when you’re building a house.  These design features make all the difference between an accumulation plan, and one you can actually use.

In What Kind of Policy Do You Want, Part 1, we discussed the key elements: a dividend-paying whole life insurance contract with a mutual company that has guaranteed premiums, guaranteed cash value, and a guaranteed death benefit.  Now it’s time to step it up a notch.

High cash value up front and long-term performance are highly achievable when you design the policy in a specialized way. This custom design includes specific funding ratios and high-performance custom modifications to a whole life policy.


Why You’re Shopping for a High Cash Value Policy
Why are you looking for a life insurance policy with high early cash value and long-term growth?

You want to secure the advantages of safety and liquidity of your money while maximizing your growth rate.  Your cash value won’t drop in value, and you can access it through policy loans.  Because of this, you know that whole life insurance is an ideal place to store cash, allowing you to be the bank.

You’re also grateful for the peace of mind that the death benefit offers.  You are purchasing a net worth that will automatically self-complete when you die, even if you don’t get to live out your wealth creation.

But rather than just setting it and forgetting it, you plan to use your life insurance policy while you’re alive.  You want to use your capital along the way to invest in cash-flowing projects to accelerate your wealth creation in a process known as Privatized Banking.  Instead of giving up cash each time you purchase another asset, you maintain control of your capital.  Consequently, you reap the miracle of compound interest and earn a return in two places at the same time.

This is why it’s important that you don’t just get a policy that builds cash value at some point.  You want access to lots of cash value very early on in the policy.  Today’s article will show you how that is possible.
What We’ll Cover
Today, we’ll show you how we fine-tune a life insurance policy to get it to peak performance.  This is the secret sauce behind a Privatized Banking policy.  It’s how we dress up a typical life insurance policy and transform it into the superhero version.

We’ll answer:

* What makes the policy specially designed?
* How do I build up cash value quickly to invest in opportunities?
* What do I need to know so I'm not sidetracked with minor details? 
* How do I make sure the policy fits me, personally?

We’ll reveal the design of the ideal life insurance policy that serves you best right away, and for decades to come.

You’ll learn the three components of a Privatized Banking policy, what each achieves, how they work together, and the ideal funding ratio for high early cash value AND long-term growth.  You’ll gain the framework to find a policy that’s sturdy enough to drive it hard and still last a lifet...]]>
Bruce Wehner & Rachel Marshall clean 51:16
Teaching Kids Free Market Principles, with Connor Boyack – TMA 054 https://themoneyadvantage.com/tuttle-twins-free-market-principles/ Mon, 26 Nov 2018 10:00:26 +0000 https://themoneyadvantage.com/?p=3594 Connor Boyack is the author The Tuttle Twins, a series of a premier free market educational books for kids.  Once a web developer and online marketer, his passion transformed him into an economic, history and political philosopher and educator. Because he was perplexed by current events, he began studying history’s patterns, looking for answers to prevent us from repeating the mistakes of the past.  Through his study, he discovered the time-tested principles of free market economics, liberty, and entrepreneurship. Connor then immersed himself in political activism, starting a think tank to change state laws.  While helping Tesla battle against the traditional car companies and protectionist laws that prohibited them from selling any cars in Utah, he began grappling with a new question.  How could he help his young children understand his work of protecting the free market? Finding no other resources, he set out to create one for kids to understand these big philosophical ideas.  The Tuttle Twins books were born.  Now a series of nine stories that condense the ideas of liberty-minded authors such as Leonard Read, Henry Hazlitt, G. Edward Griffin, Ayn Rand, and Frederick Bastiat, the Tuttle Twins communicate big ideas in a way that everybody can understand. Because these books are creating a movement of thinkers, we wanted to share the author’s take. Where Creating a Legacy Fits into the Cash Flow System As a community of wealth creators, one of our most compelling desires is not only to thrive personally, but to leave a legacy for our children of the wisdom, principles, and character that make it possible. Let’s look at the big picture. In the Cash Flow System, you first increase cash flow by keeping more of the money you make, then you protect your money, and finally, you increase and make more. This conversation will take us full circle and land in two places. Firstly, it’s part of helping you create and solidify your own mindset, philosophy, and principles of wealth creation in the very first step of the first phase. Secondly, it’s also part of creating a legacy and passing on the wisdom that will help our kids flourish as entrepreneurs and value creators in the very last step of the last phase. Who Is Connor Boyack? Connor Boyack is president of Libertas Institute; a free market think tank in Utah. In that capacity, he has spearheaded many successful policy reforms in areas such as education reform, civil liberties, government transparency, business deregulation, personal freedom, and more. Connor is also president of The Association for Teaching Kids Economics, a nationally focused nonprofit training teachers on basic economic principles, so they are empowered and motivated to help their students learn more about the free market. As a public speaker and author of over a dozen books, Connor is best known for The Tuttle Twins books, a children’s series introducing young readers to economic, political, and civic principles. He co-hosts a podcast along with Bryan Hyde that discusses entrepreneurship, innovation, philosophy, current events, politics, and more. They feature interesting guests who have compelling messages worth learning about, helping expose the public to insights and efforts that deserve greater awareness and support. Connor lives near Salt Lake City, Utah, with his wife and two homeschooled children. Conversation Highlights (Partial Transcript) The Food Truck Fiasco [11:46] One of my favorites is The Tuttle Twins and the Food Truck Fiasco. This was our fourth book. It's based on the ideas from Economics in One Lesson, by Henry Hazlitt. It’s an important issue on its own. It talks a lot about protectionism, how, often the incumbent players in a market or industry will work with their buddies in government to create laws that prevent their upstart competitors from being able to have a free and fair playing field. And of course, Connor Boyack is the author The Tuttle Twins, a series of a premier free market educational books for kids.  Once a web developer and online marketer, his passion transformed him into an economic, history and political philosopher and educator. Because he was perplexed by current events, he began studying history’s patterns, looking for answers to prevent us from repeating the mistakes of the past.  Through his study, he discovered the time-tested principles of free market economics, liberty, and entrepreneurship.

Connor then immersed himself in political activism, starting a think tank to change state laws.  While helping Tesla battle against the traditional car companies and protectionist laws that prohibited them from selling any cars in Utah, he began grappling with a new question.  How could he help his young children understand his work of protecting the free market?

Finding no other resources, he set out to create one for kids to understand these big philosophical ideas.  The Tuttle Twins books were born.  Now a series of nine stories that condense the ideas of liberty-minded authors such as Leonard Read, Henry Hazlitt, G. Edward Griffin, Ayn Rand, and Frederick Bastiat, the Tuttle Twins communicate big ideas in a way that everybody can understand.

Because these books are creating a movement of thinkers, we wanted to share the author’s take.

Where Creating a Legacy Fits into the Cash Flow System

As a community of wealth creators, one of our most compelling desires is not only to thrive personally, but to leave a legacy for our children of the wisdom, principles, and character that make it possible.

Let’s look at the big picture.

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

This conversation will take us full circle and land in two places.

Firstly, it’s part of helping you create and solidify your own mindset, philosophy, and principles of wealth creation in the very first step of the first phase.

Secondly, it’s also part of creating a legacy and passing on the wisdom that will help our kids flourish as entrepreneurs and value creators in the very last step of the last phase.

Who Is Connor Boyack?

Connor Boyack is president of Libertas Institute; a free market think tank in Utah. In that capacity, he has spearheaded many successful policy reforms in areas such as education reform, civil liberties, government transparency, business deregulation, personal freedom, and more.

Connor is also president of The Association for Teaching Kids Economics, a nationally focused nonprofit training teachers on basic economic principles, so they are empowered and motivated to help their students learn more about the free market.

As a public speaker and author of over a dozen books, Connor is best known for The Tuttle Twins books, a children’s series introducing young readers to economic, political, and civic principles.

He co-hosts a podcast along with Bryan Hyde that discusses entrepreneurship, innovation, philosophy, current events, politics, and more. They feature interesting guests who have compelling messages worth learning about, helping expose the public to insights and efforts that deserve greater awareness and support.

Connor lives near Salt Lake City, Utah, with his wife and two homeschooled children.

Conversation Highlights (Partial Transcript)

The Food Truck Fiasco

[11:46] One of my favorites is The Tuttle Twins and the Food Truck Fiasco. This was our fourth book.

It’s based on the ideas from Economics in One Lesson, by Henry Hazlitt.

It’s an important issue on its own. It talks a lot about protectionism, how, often the incumbent players in a market or industry will work with their buddies in government to create laws that prevent their upstart competitors from being able to have a free and fair playing field. And of course, this then favors the incumbent who can continue to amass more market share and consolidate power.

We see it with Uber and Lyft, Airbnb. We see it with food trucks, battling against restaurants and their buddies in the city council.

The Book as an Instruction Manual for Protecting the Free Market

What I like most about it is that we published the book a couple of years ago now. Then literally, two months later, there was an issue with food trucks here in my state in Utah.  Almost exactly, the problems in this book started playing out in real life.

Food trucks were getting shut down. And we had mayors who favored protecting brick and mortar restaurant owners from this competition.

And so here in Utah, we ended up waging a campaign to change the laws, just like in my book, Ethan and Emily, the twins start a campaign to rally public support.  They have a rally, they pressure City Hall.  We almost used it as an instruction model, this foreshadowing book that I had written, and we just did the same thing. We had a big rally, with over 2,000 people showing up.  There were all sorts of news crews, a dozen food trucks. Then we pressured the legislature to change the law. Because of our work, the city passed the nation’s first food truck freedom law that knocks down all these protectionist regulations.

I have a soft spot in my heart for that book, because of the way it played out in the real world.  It shows that just like we wrote this story about Ethan and Emily making a difference and getting these laws changed to protect the free market, we actually went did that very thing.

The Miraculous Pencil

[20:34] This is actually one of our more popular books. This one is based on an essay called I, Pencil, by Leonard E. Read, who started the Foundation for Economic Education, an excellent resource for those interested in free markets.

This essay is essentially the autobiography of the pencil. Read talks about how everyone thinks a pencil is very simple, but in reality, nobody knows how to make it.

Because if you think about its component parts, the wood, the graphite, the metal, the rubber, etc., all of these parts would be extremely difficult for any one person to make on their own.

Conversations About Collaboration In the Manufacturing Process

I do school assemblies for the fourth and fifth grade based on our children’s version of the book.  I ask, who thinks they can make a pencil entirely on their own? All these confident hands come up. Then I say, let’s take just the wood. If you had to get the wood, how would you do that? You’ll need a saw and an ax, right? Then you cut down the tree, but how do you transport it to the mill? How do you cut it down to just the right length? How do you get sandpaper? Can you make sandpaper all on your own or are you going to go buy it?

You eventually start seeing that the people who make the roads, the farmers who grow the food that we eat for lunch to keep us going at work, so we can make our pencil.  There are literally hundreds of thousands of people in this ecosystem that are all serving us throughout the chain of supply and service that help a pencil come together at the end.

This seemingly simple product is actually the collaborative effort of people across the world who speak different languages, have different religions, maybe their governments are hostile with one another, or they have completely different social preferences. Through the economy, we come together.  It produces social harmony, a win-win environment where we’re paying and exchanging with one another.

In our version, The Tuttle Twins and the Miraculous Pencil, the kids go on a field trip to learn how a pencil is made. Then, they follow the story and really realize that, all across the world, we’re all working together on a pencil, let alone more complex object, it’s like a car or a computer.

Fostering Awe, Wonder, and Gratitude

In our family, for example, just like with the pencil, we discuss everyone who was involved in making dinner. Mom just cooked dinner, but was it all mom? Who else helped? The farmer, the grocery store guy, the truck driver, the folks who built the roads, and so forth.

For me, as a parent, I love it, because it instills my children with a sense of awe and wonder at the world rather than a sense of entitlement.

I like it as a human.  I think it’s good for our society to be appreciative of the reality of the world in which we live, and recognize that by serving and helping one another, we all prosper.

The Search for Atlas

[24:31] This book was based on Atlas Shrugged. We distilled the core ideas of Ayn Rand’s book: the importance of personal responsibility, keeping the fruit of your own labor, not envying, and the virtue of work.

We then incorporated these ideas in our story to communicate those principles to children.  There’s a lot of envy in our world.  There are undertones of socialist entitlement.

That seems a fundamental conflict. While a separate conversation is needed for a social safety net for those who legitimately can’t work and are in need of charity, by and large, our society is comprised of people who actually can and should work and enjoy the fruits of their labors, and not take that from somebody else.

The story is set in a circus. Different actors represent the different attitudes of hard work and independence versus laziness and envy and the more socialist entitlement mentality.

Ayn Rand paints a dystopian picture of a world in which those different attitudes are competing and lead to the collapse of a society, and then the hard-working, productive people flee so they can create their own productive society.Teaching Free Market Principles, with Connor Boyack, Author of The Tuttle Twins

In our book, The Tuttle Twins and the Search for Atlas, the circus is a microcosm for the society. You see the same cause and effect of how these ideas play out, and what the logical extension of the different attitudes becomes.

The child can follow along and say, how would a circus really work if all the clowns were lazy? Things wouldn’t really work. It’s important that everyone pitches in, that hard work is rewarded, and that incentives are in place.

The circus helps the young reader see how it would apply in that small environment and then begin to think about how it would it apply in the real world.

The Tuttle Twins and Their Spectacular Show Business

[28:23] Our latest book is based on Competition and Entrepreneurship, by Dr. Israel Kirzner, a free market economist, academic and author.

It’s important to establish, as he does, the prime role of the entrepreneur in the economy.

So often we don’t fully understand the importance of the innovator in job creation and wealth production.  We take for granted these people who are assuming risk, entering new markets, and creating ripple effects in other markets. It’s these change agents who are responsible for the rising tide that lifts all boats.

In response, we wanted to write a book that highlights the vital role of the entrepreneur.

Kids Learn Free Market Ideas Through Entrepreneurship

Here in Utah, last year we launched the children’s entrepreneur market. Each event is like a farmer’s market but run entirely by the kids. We have hundreds of children participating in each one. It’s like a lemonade stand on steroids. People are selling games, crafts, clothes, books, food, and other awesome stuff.

We get 1000 plus people coming to these events to shop at these kids’ markets, so the kids get a great opportunity to practice entrepreneurship.  It’s not just the Saturday event.  It’s the preparation throughout the week.  How do you market? What’s needed to do price discovery? How do you handle competition when three stalls down, they’re selling fidget spinners just like you are?

Entrepreneurship is such a great way to introduce youth to free market ideas. Their profit motive is very strong, so when a kid has a legitimate opportunity to grow a little business and earn a little money, that is such a great way to teach these ideas, apart from books. The books are great and helpful for a lot of parents who get them. But at the end of the day, you want to do something more, and getting that tangible experience is so important.

How the Book Gives Young Readers a Model for Entrepreneurship

Our book basically walks a child through how they would actually set up a business.

How do you think entrepreneurially? How do you problem solve? What does it mean to find a way to serve other people and produce something that other people are going to want? And how do you get it to them? What about marketing?

We wanted to have a young reader be able to step through a book and say, Hey, let’s take that same process that the Tuttle twins went through, and let’s actually do it in real life.  They can go to the activity workbook and create a sample business plan. And they can start to do some of these activities to not only think about and learn about entrepreneurship but actually to go practice it.

That was actually a really fun book to do for our children’s markets. All the kids get one of those books now to help them in their educational process to learn more about the nuts and bolts of entrepreneurship. I think, over the long term, that’s going to be one of the more important books we do because it’s very actionable.

The Tuttle Twins and the Fate of the Future

[38:51] This is based on a book by Murray Rothbard called Anatomy of the State, which boils down the ideas of persuasion versus coercion. It posits, is it better to build a society and economy on coercion where we have central planning and control? Or do we want one where persuasion is how we interact with one another, where we’re trying to use the market to encourage people to do things or to acquire things?

The book explores this idea deeply. It’s actually encouraging the twins in the book, and then the readers of the book, to imagine a future where we use our creativity to think about what the future should look like.  Is a future of the status quo really the best we can do? Or we can we try to imagine what society should look like in the future? The whole idea is to get children to be more actively engaged and think about whether they want to become a cog in the wheel of whatever system is already in place, or do they want to have a say in creating the future?

Questions from Our Audience

What are Your Thoughts on Democratic Schools?

Passion-Driven Education

[33:01] The whole idea behind my book, Passion-Driven Education, is this: Rather than speaking to children in a foreign language they don’t intuitively understand, let’s instead use language that the child does understand. They can start to understand a lot of these concepts, whether math, science or English if you teach based on the interest of the child.  They’re intuitively interested in whatever that passion is.

For example, when I wrote the book, one of my son’s interests was Angry Birds. I used Angry Birds to explain many scientific principles. And he loved it because he was learning more about Angry Birds.  He was making sense of why the birds fall, and why, in Angry Birds space, they hover and go around an asteroid over and over and over again. When I was explaining these concepts, it was it wasn’t drudgery or homework.  It was interesting.

In my book, we review several other educational models, and how they interface with this concept.

Democratic Schools

One of them is the Sudbury schools, the democratic schools where kids are in charge. I love this concept.

One of the biggest problems I have with modern schooling is its authoritarian nature. I believe that kind of inculcates in children, a very submissive mentality, where you’re basically, for lack of a better word, indoctrinating into children, submissiveness and being deferential to authority. I think we need more independent thinkers, more free minds, more people who take matters into their own hands.

When, in the formative years of a child’s life, they are immersed in a system of authoritarianism, I think that produces a citizenry that is familiar with authoritarianism. I think that bleeds out into our political structures and our society.

I love the democratic school idea because, from a young age, you’re empowering children to engage.  You’re empowering them to not simply to do what they’re told, but to have a say in the matter and be able to think critically about whether something is right, or whether it should be changed.  You’re letting them discover what they feel about something and giving them a seat at the wheel of their own life to be able to drive things in a direction that they feel appropriate, with guidance, control, and oversight. This isn’t Lord of the Flies, with children out on their own.

I like it from a much higher level, there’s a lot of smaller or localized benefits. When I look at it on an aggregate scale, in terms of what type of society these schools would produce, I like that model far better than the public schooling that we have right now.

Would You Consider Writing a Book About the Importance of Investing in Yourself Financially with Mutual Whole Life Insurance?

[36:55] This gets to an underlying question, which is, how many books are we actually going to do?

When we started the series, things started moving along, I thought we’d write eight to 10, and then we’d stop. We’ve already now done our eighth.  Now, we’re a few weeks away from publishing our ninth.  And then, we already have our 10th planned.

We sent a survey out to about 40,000 plus families who are reading the books on our list. 80% wanted us to keep writing more books.  I’ve resigned myself to this new business model or new decision that we’re just going to keep on going. We’ve got a list that we’ve compiled of all sorts of other topics that we can do.

The Privatized Banking, personal investment concept is definitely on the list.  Many of our supporters are big champions of the model that Nelson Nash created.

Admittedly, I’m not super familiar with it, yet. It’s on my “to read” pile next to me on my desk right now to dig in and learn more. So many people I respect, like Bob Murphy and others, are big champions of this type of system, that I want to learn more about it. Now that we have this open-ended limit on books, we plan to cover an issue like that. I’m not going to foreclose the opportunity to explore that in the future.

Other Topics Discussed

  • Balancing the idea of a free market with few regulations and then supporting laws to support the free market.

Action

Learn more and get the Tuttle Twins books here.

Current titles include:

  • The Tuttle Twins and the Road to Surfdom
  • The Tuttle Twins and the Miraculous Pencil
  • The Tuttle Twins and the Food Truck Fiasco
  • The Tuttle Twins and the Search for Atlas
  • The Tuttle Twins and the Creature from Jekyll Island
  • The Tuttle Twins Learn About The Law
  • The Tuttle Twins and the Golden Rule
  • The Tuttle Twins and their Spectacular Show Business
  • The Tuttle Twins and the Fate of the Future

Learn more about Connor Boyack and his work and connect with him at http://connorboyack.com.

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.

]]>
Connor Boyack is the author The Tuttle Twins, a series of a premier free market educational books for kids.  Once a web developer and online marketer, his passion transformed him into an economic, history and political philosopher and educator.
Connor then immersed himself in political activism, starting a think tank to change state laws.  While helping Tesla battle against the traditional car companies and protectionist laws that prohibited them from selling any cars in Utah, he began grappling with a new question.  How could he help his young children understand his work of protecting the free market?

Finding no other resources, he set out to create one for kids to understand these big philosophical ideas.  The Tuttle Twins books were born.  Now a series of nine stories that condense the ideas of liberty-minded authors such as Leonard Read, Henry Hazlitt, G. Edward Griffin, Ayn Rand, and Frederick Bastiat, the Tuttle Twins communicate big ideas in a way that everybody can understand.

Because these books are creating a movement of thinkers, we wanted to share the author’s take.


Where Creating a Legacy Fits into the Cash Flow System
As a community of wealth creators, one of our most compelling desires is not only to thrive personally, but to leave a legacy for our children of the wisdom, principles, and character that make it possible.

Let’s look at the big picture.

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

This conversation will take us full circle and land in two places.

Firstly, it’s part of helping you create and solidify your own mindset, philosophy, and principles of wealth creation in the very first step of the first phase.

Secondly, it’s also part of creating a legacy and passing on the wisdom that will help our kids flourish as entrepreneurs and value creators in the very last step of the last phase.
Who Is Connor Boyack?
Connor Boyack is president of Libertas Institute; a free market think tank in Utah. In that capacity, he has spearheaded many successful policy reforms in areas such as education reform, civil liberties, government transparency, business deregulation, personal freedom, and more.

Connor is also president of The Association for Teaching Kids Economics, a nationally focused nonprofit training teachers on basic economic principles, so they are empowered and motivated to help their students learn more about the free market.

As a public speaker and author of over a dozen books, Connor is best known for The Tuttle Twins books, a children’s series introducing young readers to economic, political, and civic principles.

He co-hosts a podcast along with Bryan Hyde that discusses entrepreneurship, innovation, philosophy, current events, politics, and more. They feature interesting guests who have compelling messages worth learning about, helping expose the public to insights and efforts that deserve greater awareness and support.

Connor lives near Salt Lake City, Utah, with his wife and two homeschooled children.
Conversation Highlights (Partial Transcript)
The Food Truck Fiasco
[11:46] One of my favorites is The Tuttle Twins and the Food Truck Fiasco. This was our fourth book.

It's based on the ideas from Economics in One Lesson,]]>
Bruce Wehner & Rachel Marshall clean 44:37
Rich Person Roth: For the Most Tax-Free Income (Reviewed) – TMA 053 https://themoneyadvantage.com/rich-person-roth-most-tax-free-income/ Mon, 19 Nov 2018 10:00:37 +0000 https://themoneyadvantage.com/?p=3411 Although Trump’s Tax Reform cut taxes in many ways, millions of Americans will see taxes increase in 2018.  The lower standardized deduction and the $10K cap on deductions for SALT (State and Local Taxes) will primarily affect those in the upper-middle to mid-upper class.   Consequently, tax planning is becoming a growing priority for an increasing population.  But for one of the most common tax-minimizing tactics, the Roth IRA, the luster is wearing thin as its limitations are becoming increasingly apparent.  In its place, the Rich Person Roth is taking center stage as a strategic tool to reduce current and future income taxes, as articulated by David Rae, in the Forbes article, Rich Person Roth: For The Most Tax-Free Retirement Income. This article discusses how the Rich Person Roth beats a basic Roth IRA and how it overcomes the biggest risks to your financial security.  Then it opens a candid dialogue about why it isn’t for everyone. In addition to discussing the points of this article, we’ll help you think through how best to reduce income taxes and create a future of time and money freedom. Why Future Tax-Free Income Is in High Demand While tax law changes have everyone on high alert, grappling for how exactly they will be affected today, the discerning are already calculating future impacts. To widen our view of how to handle current and future taxes, let’s talk about the three ways money set aside for the future can be taxed. Tax-Deferred One strategy is to find financial tools that defer a tax.  Here, the investment is made pre-tax, lowering taxable income in the year the contribution is made. However, income taken from these accounts later is taxed at whatever future tax rates will be at that time.  Familiar accounts in this category are 401k’s, 403b’s, IRAs. While suppressing and placing a bandage on an immediate concern, tax-deferred assets create more uncertainty for the future.  What will tax rates be at that time? How will I be impacted?  How much money will I have, how much tax will I owe, and what will be left? Taxable Another type of financial tool is a taxable asset.  With a taxable account, you put in dollars that have already been taxed.  As your money grows, the growth is taxable income. Accounts like checking, savings, money markets, and securities fall in this category. The growth is taxable each year.  In the early years, growth is small, and the taxes are fairly insignificant. But as these accounts grow over time, the taxes due can become hefty. Most people don’t pay the taxes out of the account, but instead, must find a way to pay the taxes due out of their current income. Tax-Free, or Tax-Exempt Because of the tax implications of both tax-deferred and taxable accounts, many are seeking respite in tax-free assets. These accounts offer the ability to set aside already-taxed dollars in an account that will grow tax-free and be able to be used tax-free. With these vehicles, you have a limit on your tax.  What you pay in tax today is all you’ll ever pay. For the forward-thinker, these accounts work the best to minimize your future tax burden. Why the Roth IRA Falls Short IRA’s are often thought of as the champion of tax-free income planning because they fall in the tax-free category.  However, they fail the high-income earner in several ways. 1) Loss of Control with Limited Access First, not all of your Roth IRA is accessible, should you need to use your cash before age 59 ½. You’ll have to wait until your money has been invested for 5 years to access the money tax-free.  And then, you can access the contributions, but not the growth, unless you pay IRS taxes and penalties. 2) Low Contribution Limits Then, the 2019 contribution limit is $6,000/year, or $7,000/year for catch-up contributions if you’re at least 50. If you maxed out your contributions each year, you would hardly accumulate enough to produce an income equal to what you make now. Although Trump’s Tax Reform cut taxes in many ways, millions of Americans will see taxes increase in 2018.  The lower standardized deduction and the $10K cap on deductions for SALT (State and Local Taxes) will primarily affect those in the upper-middle to mid-upper class.   Consequently, tax planning is becoming a growing priority for an increasing population.  But for one of the most common tax-minimizing tactics, the Roth IRA, the luster is wearing thin as its limitations are becoming increasingly apparent.  In its place, the Rich Person Roth is taking center stage as a strategic tool to reduce current and future income taxes, as articulated by David Rae, in the Forbes article, Rich Person Roth: For The Most Tax-Free Retirement Income.

This article discusses how the Rich Person Roth beats a basic Roth IRA and how it overcomes the biggest risks to your financial security.  Then it opens a candid dialogue about why it isn’t for everyone.

In addition to discussing the points of this article, we’ll help you think through how best to reduce income taxes and create a future of time and money freedom.

Why Future Tax-Free Income Is in High Demand

While tax law changes have everyone on high alert, grappling for how exactly they will be affected today, the discerning are already calculating future impacts.

To widen our view of how to handle current and future taxes, let’s talk about the three ways money set aside for the future can be taxed.

Tax-Deferred

One strategy is to find financial tools that defer a tax.  Here, the investment is made pre-tax, lowering taxable income in the year the contribution is made.

However, income taken from these accounts later is taxed at whatever future tax rates will be at that time.  Familiar accounts in this category are 401k’s, 403b’s, IRAs.

While suppressing and placing a bandage on an immediate concern, tax-deferred assets create more uncertainty for the future.  What will tax rates be at that time? How will I be impacted?  How much money will I have, how much tax will I owe, and what will be left?

Taxable

Another type of financial tool is a taxable asset.  With a taxable account, you put in dollars that have already been taxed.  As your money grows, the growth is taxable income.

Accounts like checking, savings, money markets, and securities fall in this category.

The growth is taxable each year.  In the early years, growth is small, and the taxes are fairly insignificant.

But as these accounts grow over time, the taxes due can become hefty. Most people don’t pay the taxes out of the account, but instead, must find a way to pay the taxes due out of their current income.

Tax-Free, or Tax-Exempt

Because of the tax implications of both tax-deferred and taxable accounts, many are seeking respite in tax-free assets.

These accounts offer the ability to set aside already-taxed dollars in an account that will grow tax-free and be able to be used tax-free.

With these vehicles, you have a limit on your tax.  What you pay in tax today is all you’ll ever pay.

For the forward-thinker, these accounts work the best to minimize your future tax burden.

Why the Roth IRA Falls Short

IRA’s are often thought of as the champion of tax-free income planning because they fall in the tax-free category.  However, they fail the high-income earner in several ways.

1) Loss of Control with Limited Access

First, not all of your Roth IRA is accessible, should you need to use your cash before age 59 ½.

You’ll have to wait until your money has been invested for 5 years to access the money tax-free.  And then, you can access the contributions, but not the growth, unless you pay IRS taxes and penalties.

2) Low Contribution Limits

Then, the 2019 contribution limit is $6,000/year, or $7,000/year for catch-up contributions if you’re at least 50.

If you maxed out your contributions each year, you would hardly accumulate enough to produce an income equal to what you make now.

Imagine if you contributed $6,000 per year for 40 years, earned a 5% return every year.  You would still only accumulate about $725,000.

Accumulation Insufficient to Support Future Desired Lifestyle

If you continued earning 5% on your account every year during distribution, you could withdraw $3,843/month from age 65 to age 95, a total of $46,116/year, before you completely depleted your account.

However, by the end of your life, inflation will have eroded your purchasing power.

Accounting for an inflation rate of 3%/year, your new standard of living would feel like about $18,996/year.

And those numbers are if you completely deplete your account.  If you hoped to live off the interest, it’s recommended that you take out only 2% per year to preserve your principal.  That would give you only $14,500/year in income.

Either way you slice it, that’s hardly sufficient to maintain a middle to upper-class lifestyle you may expect.

3) Many Earn Too Much to Contribute at All

Finally, and most importantly, there are income limits that prevent high-income earners from contributing to a Roth IRA at all.

In 2019, for a single person, modified adjusted gross income must be under $137,000/year to contribute to a Roth.  In addition, a phase-out reduces your contributions if you make more than $122,000.

For those married filing jointly and qualifying widows(ers), MAGI must be less than $203,000, with the phase-out beginning at $193,000.

So, if you make too much money, it puts you above the threshold, and you’re excluded from using a Roth IRA altogether.

A Better Alternative for Tax Planning: The Rich Person Roth

The Rich Person Roth, one of the oldest and most time-tested assets, is re-emerging on the scene as one of the easiest ways for high-income earners to unlock more tax-free income in the future.The Rich Person Roth - For The Most Tax-Free Income

Like the Roth IRA, it grows tax-free, and you can use it tax-free.

Outperforming the Roth IRA, you don’t give up control, because you have access to your capital.  There are no contributions limits so you can put in as much as you want.  And there are no high-income restrictions.

Additionally, it’s not only available to the super-rich.  While some of the wealthiest Americans have chosen to park some of their hard-earned wealth into this asset, anyone can use it.  And the amount of tax-free income you can get in the future is limited only by how much you’ve put in.

What Is a Rich Person Roth?

So, what exactly is the Rich Person Roth?  It’s another name for an IRS-sanctioned cash value whole life insurance policy.

The Rich Person Roth goes by several other names, too.  You may have heard of Infinite Banking, Privatized Banking, Cash Flow Banking, Life Insurance Retirement Plan (LIRP), Rich People Roth, Richer Man’s Roth, Specially Designed Life Insurance Contract (SDLIC), or even a 7702 plan, which refers to the actual place in the IRS code that makes life insurance cash value, through dividends and interest, tax-free.

It is important to note that not all life insurance policies work the same way.  Only the conservative fixed-rate whole life insurance policy performs as discussed here.

Not only does the Rich Person Roth give you tax-free access with guaranteed policy loans up to 100% of your available cash value, but the death benefit is also income tax-free to your heirs as well.

Why It Works Great for Women, Too

The Rich Person Roth isn’t just for men.  It has a tremendous benefit to women as well.

Women live longer, giving their assets more time to compound tax-free.

Actuarially, that works out to a lower cost of insurance.  The benefit is that women build cash value more quickly and get a higher death benefit compared to men, with the same funding amount.

The Benefits of Using Cash Value During Retirement

Control

In most retirement planning accounts, the risks of future unknown taxation, stock market risk, and longevity risk are ever-present.  If taxes rise, or the stock market drops, or if you live longer, you have less money to live on in retirement.

The primary advantage of the Rich Person Roth is that you overcome those risks.

Instead, you don’t have to pay tax on your money again, so you cancel the risk of a tax hike spoiling your usable cash.

Your cash value is not linked to the stock market, so downturns can’t reduce or level your wealth.

And because this policy will be with you for your whole life, living longer isn’t a risk that compounds your other risks.

Use More of Your Money and Still Leave a Legacy

Instead of using only interest from other accounts to preserve principal, you can spend down the interest and the principal, knowing that the death benefit will be there to replenish the legacy you leave to your heirs.

Life insurance also allows you the opportunity to use a reverse mortgage for income, and still have an asset to backfill your legacy, even if you use up all of your home equity.

Enjoy Your Money More

You don’t have to let taxation lessen the enjoyment you get from your money. You can use it for personal income, gifts to the grandkids, or taking a vacation, all without paying tax.

This gives you the freedom to use and enjoy your money, for whatever you wish.

Reduce Future Taxable Income

Because income you receive tax-free is not reportable on your tax return, it does not increase your taxable income.  Consequently, it won’t push you into a higher tax bracket.

A lower taxable income also saves you money in other ways.

For instance, Medicare Part B costs more as your income increases.  Lower income reduces your cost for Medicare Part B, keeping more dollars in your pocket during those later years.

Options for Turning Life Insurance Cash Value into an Income Stream

To convert your life insurance policy into an income stream, you have three primary options.

You can take a loan against your available cash value.  And just because it’s a loan, doesn’t mean you have to pay it back.  It will accrue interest, but as long as the total loan plus interest doesn’t surpass your total available cash value, your policy will remain intact.  The death benefit will be reduced by the outstanding loan, and the balance will be paid out to your heirs.

Secondly, you can take the cash value out in a withdrawal.

Thirdly, you can have the dividends paid directly to you as income, rather than being added back into the policy.

Another way to utilize cash value for income is to do it indirectly by using your money in two places at once.  Rather than using the money for consumption, turn it into production by using a policy loan to purchase a cash-flowing asset like a business or real estate.

With this strategy, your money inside the policy will continue earning dividends and interest, and you’ll also be gaining an income from other assets at the same time.

The Drawbacks to Using a Rich Person Roth and How to Overcome Them

There are a few downsides to using a Rich Person Roth.

The contributions, or premiums you pay into the policy, are not tax-deductible.  There’s no legal tool to avoid tax altogether.  However, you are paying tax on the seed, instead of the harvest.

Another sticking point for many people is that poor health will increase your cost of insurance or possibly prevent you from qualifying for a policy at all.  A solution could be to place a policy on a spouse, child, grandchildren, business partner, or parent.

Additionally, if you utilize a policy loan, yes, you will be charged interest.  However, you can get close to a “zero net loan,” where you pay interest, but also continue to earn interest on all of your cash value at the same time, basically washing out the interest cost.

A Better Alternative for Tax Planning

As you consider your tax planning needs, could a full 360° analysis of your tax strategy help you minimize taxes today and in the future?

How might life insurance be a tool you could use to park some of your wealth and reduce your tax liability?

Make sure you’re getting a full education on what you want and need so you can be a savvy decision maker.

For more information on Rich Person Roths get our free 20-minute guide: Privatized Banking The Unfair Advantage.

Finally, the Rich Person Roth, or specially designed whole life insurance, isn’t the answer for all of your assets.  Determining how to maximize your income and minimize your tax requires a full assessment of your financial picture.  It’s important that you work with a like-minded financial team with the capabilities and specialists to help you truly accomplish your goals.

Book a Call to Find Out How a Rich Person Roth Could Work or You

Contact us to find out the one thing you should be doing today to optimize your personal economy and accelerate time and money freedom.  When we talk, you’ll also find out how tax planning could help you reach your goals easier and faster.

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

]]>
Although Trump’s Tax Reform cut taxes in many ways, millions of Americans will see taxes increase in 2018.  The lower standardized deduction and the $10K cap on deductions for SALT (State and Local Taxes) will primarily affect those in the upper-middle... Trump’s Tax Reform cut taxes in many ways, millions of Americans will see taxes increase in 2018.  The lower standardized deduction and the $10K cap on deductions for SALT (State and Local Taxes) will primarily affect those in the upper-middle to mid-upper class.   Consequently, tax planning is becoming a growing priority for an increasing population.  But for one of the most common tax-minimizing tactics, the Roth IRA, the luster is wearing thin as its limitations are becoming increasingly apparent.  In its place, the Rich Person Roth is taking center stage as a strategic tool to reduce current and future income taxes, as articulated by David Rae, in the Forbes article, Rich Person Roth: For The Most Tax-Free Retirement Income.

This article discusses how the Rich Person Roth beats a basic Roth IRA and how it overcomes the biggest risks to your financial security.  Then it opens a candid dialogue about why it isn’t for everyone.

In addition to discussing the points of this article, we’ll help you think through how best to reduce income taxes and create a future of time and money freedom.


Why Future Tax-Free Income Is in High Demand
While tax law changes have everyone on high alert, grappling for how exactly they will be affected today, the discerning are already calculating future impacts.

To widen our view of how to handle current and future taxes, let’s talk about the three ways money set aside for the future can be taxed.
Tax-Deferred
One strategy is to find financial tools that defer a tax.  Here, the investment is made pre-tax, lowering taxable income in the year the contribution is made.

However, income taken from these accounts later is taxed at whatever future tax rates will be at that time.  Familiar accounts in this category are 401k’s, 403b’s, IRAs.

While suppressing and placing a bandage on an immediate concern, tax-deferred assets create more uncertainty for the future.  What will tax rates be at that time? How will I be impacted?  How much money will I have, how much tax will I owe, and what will be left?
Taxable
Another type of financial tool is a taxable asset.  With a taxable account, you put in dollars that have already been taxed.  As your money grows, the growth is taxable income.

Accounts like checking, savings, money markets, and securities fall in this category.

The growth is taxable each year.  In the early years, growth is small, and the taxes are fairly insignificant.

But as these accounts grow over time, the taxes due can become hefty. Most people don’t pay the taxes out of the account, but instead, must find a way to pay the taxes due out of their current income.
Tax-Free, or Tax-Exempt
Because of the tax implications of both tax-deferred and taxable accounts, many are seeking respite in tax-free assets.

These accounts offer the ability to set aside already-taxed dollars in an account that will grow tax-free and be able to be used tax-free.

With these vehicles, you have a limit on your tax.  What you pay in tax today is all you’ll ever pay.

For the forward-thinker, these accounts work the best to minimize your future tax burden.
Why the Roth IRA Falls Short
IRA’s are often thought of as the champion of tax-free income planning because they fall in the tax-free category.  However, they fail the high-income earner in several ways.
1) Loss of Control with Limited Access
First, not all of your Roth IRA is accessible, should you need to use your cash before age 59 ½.

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Bruce Wehner & Rachel Marshall clean 41:04
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 Privatized Banking: High Cash Value and Long-Term Growth, 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 guide: 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 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.... 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, 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. 
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. Where Entrepreneurship Fits into the Cash Flow System We love Entrepreneurship.  Business owners emphasize and focus on cash flow over accumulation. 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. Entrepreneurship is part of Investing in stage 3.  Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom. 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, 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.


Where Entrepreneurship Fits into the Cash Flow System
We love Entrepreneurship.  Business owners emphasize and focus on cash flow over accumulation.

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.

Entrepreneurship is part of Investing in stage 3.  Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.
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
]]>
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 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
]]>
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 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 earn...]]>
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. Where Entrepreneurship Fits into the Cash Flow System We love Entrepreneurship.  Business owners emphasize and focus on cash flow over accumulation. 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. Entrepreneurship is part of Investing in stage 3.  Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom. 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, 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.

Where Entrepreneurship Fits into the Cash Flow System
We love Entrepreneurship.  Business owners emphasize and focus on cash flow over accumulation.

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.

Entrepreneurship is part of Investing in stage 3.  Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.
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 withou...]]>
Bruce Wehner & Rachel Marshall 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:

* 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. Where Entrepreneurship Fits into the Cash Flow System We love Entrepreneurship.  Business owners emphasize and focus on cash flow over accumulation. 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. Entrepreneurship is part of Investing in stage 3.  Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom. 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 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.


Where Entrepreneurship Fits into the Cash Flow System
We love Entrepreneurship.  Business owners emphasize and focus on cash flow over accumulation.

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.

Entrepreneurship is part of Investing in stage 3.  Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.
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%.]]> 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)
]]>
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.   Where Entrepreneurship Fits into the Cash Flow System We love Entrepreneurship.  Business owners emphasize and focus on cash flow over accumulation. 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. Entrepreneurship is part of Investing in stage 3.  Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom. 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 ... 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.

 


Where Entrepreneurship Fits into the Cash Flow System
We love Entrepreneurship.  Business owners emphasize and focus on cash flow over accumulation.

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.

Entrepreneurship is part of Investing in stage 3.  Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.
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,]]>
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.
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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 and b... 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 program that did not re...]]>
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.”

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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. Where Entrepreneurship Fits into the Cash Flow System We love Entrepreneurship.  Business owners emphasize and focus on cash flow over accumulation. 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. Entrepreneurship is part of Investing in stage 3.  Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom. 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, 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.


Where Entrepreneurship Fits into the Cash Flow System
We love Entrepreneurship.  Business owners emphasize and focus on cash flow over accumulation.

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.

Entrepreneurship is part of Investing in stage 3.  Building a cash-flowing asset portfolio of real estate and business accelerates time and money freedom.
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. 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.   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 principles of wealth creation fits right into the very first step of the first phase.     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... 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.

 


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 principles of wealth creation fits right into the very first step of the first phase.

 

 
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.

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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. 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. 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 ... 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.


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.
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...]]>
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. 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. 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. 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.


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.

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,]]> 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.   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. 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... 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.

 


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.

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,]]>
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.   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. 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. 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.

 


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.
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 singl...]]>
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 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. 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. 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


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.

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
]]>
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.” Where Financial Education 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 personal finance, and principles of wealth creation fits right into the very first step of the first phase.     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, 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.”


Where Financial Education 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 personal finance, and principles of wealth creation fits right into the very first step of the first phase.

 

 
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
]]>
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.   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. 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, 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.

 


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.
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 acco...]]>
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.   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.     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. 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.

 


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.

 

 
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,]]>
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. 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.   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 positi... 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.


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.

 
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,]]>
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 distinctio... 
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...]]>
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.   Where Prosperity Economics 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 Prosperity Economics principles of wealth creation fits right into the very first step of the first phase.   Here are the interview 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. 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.

 


Where Prosperity Economics 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 Prosperity Economics principles of wealth creation fits right into the very first step of the first phase.

 

Here are the interview 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,]]>
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,]]>
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.   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.     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%, 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.

 


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.

 

 
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
]]>
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.     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.     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. 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.

 



 
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.

 

 
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.
]]>
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.   Where Privatized Banking Fits into Your Cash Flow System Privatized Banking is just one step in the greater Cash Flow System. 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. 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. 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  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.

 


Where Privatized Banking Fits into Your Cash Flow System
Privatized Banking is just one step in the greater Cash Flow System.

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.

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.
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.
]]>
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.   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.     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... 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.

 


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.

 

 
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,]]>
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,]]>
Bruce Wehner & Rachel Marshall clean 38:32
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