Tag: videoshort

Best Way to Define Infinite Banking

https://youtu.be/AHAdPH_UzIA

I best define infinite banking is it’s really our process. In creating private vault for you to use as your bank. And overall it’s a process, the vehicle that it uses his whole life insurance and its dividend paying whole life insurance is the product of choice on that. I specifically like from our multiple reasons that we’ll go over, but that policy then is you overfund it.

And in that way, it has a cash value that you can access your cash at any time via policy. That’s the overall concept. And as you pull that out, the money still continues to work in your vault or in that, in your account. And you’re able to deploy that elsewhere and pretty much have your money work in two places at once.

The way I personally use it, when I had a policy, when I first started to do $50,000 a year after a couple of years, two, three years, they had at least a hundred thousand dollars of cash value built up in there. I always try and keep my liquidity low in my bank. You never want to have too much cash making nothing, but that’s why the next money is in your infinite banking policy to cash value, where it’s making a nice little tax-free yield.

That the first component of why we like infinite banking so much when the money is in, I call this the government in pull, but it’s just for some strange reason. Yeah. Life insurance, your yields, there are tax free. That’s a place to store my liquidity. And then when I need to go into a dealer too, and I need to drain that liquidity, I have it, but at least it’s not sitting in my normal checking account savings account, not doing any teeth growth, the use of whole life insurance.

It has a guaranteed aspect of it. Current gross rate of that is, 4% that is about to change, but the policies are ranging from three, three, 3% to three and a half percent uncorrelated not tied to the stock market directly on some policies you may have. And you can be in control of that, of how much funds are correlated.

But one of the main benefits for investors that this is not correlated to the stock market protection, but it is a product. So there is a life death benefit portion of it. But in addition to that in states, it varies, but there’s also some liability. And bankruptcy protection with the cash value or the death benefit over policies.

Some of our doctor clients, what they like to do is they stuff a lot of cash in here mainly for this protection aspect, right? There’s all these different asset protection strategies out there. There’s not one that’s going to get you to trying to build your castle with multiple layers of protection and diversifying.

So by putting some money into life insurance policies, Think that one part of your portfolio. Yeah. And liquidity, that’s one of the main appeals for investors where your funds are not tied up. You have access to that and it, you would have access to it in the forms of policy loans. And that’s what keeps it also, tax-free where you have access to the growth and all of your policy.

How a Near Death Experience Turn Your Life Around

https://youtu.be/moWuliNb8b8

Like you had empathy in the, he gave you empathy to see it from those people, the needy person’s eyes, or was it more, am I going to be I’m on earth for a little bit more? What it was this money? What else could this money be going for? So interesting being dead because you didn’t have anything physical.

You had you, there was that whole thing of you can’t take it with you became abundantly clear. I had no jewelry on nothing that was there except myself. And what I did on earth that I brought with me, which was the good that I did. I brought with me. So when I saw people, like I had this thing after being in a wheelchair for quite a while, I had this thing about being invisible.

When I was in a wheelchair, it was an awful feeling. So when I got out and I would see somebody. Particularly homeless people in a wheelchair. I would go out of my way to look in their eyes and I say hi, and just get the shock on their face. Oh dude, I’m not invisible anymore. Same thing that sounds like it’s like you have that higher level of empathy or you are aware a lot more aware of other people.

Yes. The sense that we’re all one, we’re all pieces of God. One person is not any more valuable than them. What you have is not as important as what you do. And that’s what really brings you joy. It just seems to me that money is a wonderful thing and it’s because you can use it to do things just to support it, or just only for myself just brings a hunger for more.

That’s when I found I still love my real estate, I love what it can do for people. I have a real empathy. Homeless my book. I didn’t get into it to make money. I knew I was sent back to write it to the book is more than just that one little. Three or four chapters about how it’s about my whole life and my family’s lives going way back, a couple of generations up till now and how we all struggle with things and we have to help one another.

And. I don’t know. I just feel like the homeless are the people that need the most help. So I’m an advocate that direction, any money I make, half of it goes into Tacoma and I’ve already given them a lot more than I’ll probably ever make, but it’s, it’s always worth it. .

How To Gain Profit From ATM Business

https://youtu.be/f5pFaKulP68

Just to give people some magnitude in their head. Was it one of these ATM machines costs if you were to do it on your own, and if you’re using these kinds of operating management type of companies, that kind of gets you going good, an easy way to think about it. And again, I’m not an expert, but from what I’ve learned, you can get an ATM for a couple of times.

If you want to go turnkey, let’s just call it a, just double that. So 4,000, let’s just say then of course, you’re going to have to put money in and that is going to depend on what type of place you put it in. So if you’re in a mall, you’re going to need a lot more money than that. If you’re at the tattoo shop around the corner, the amount of investment.

On that side of it varies drastically. And then of course, how busy the place is, will determine either how often you go or how much money you choose to put in at the time. So that’s an easy way to think about the cost of the ATM as far as. The cashflow again, that’s going to depend greatly, but let’s just say an average of $300 a month to $300 a month is a nice, easy way to, annual Ally’s that’s a few grand.

Yeah. Yeah. Like 3030 500 somewhere around there. And you’re going to spend anywhere from two to 4,000 on the machine, plus the cash to put in it. So let’s just say $10,000. That’s how I think about it. Like when I was finding out about the turnkey rentals and everything for the. Okay, 20,000 to get you a hundred thousand dollars home.

I think about these the same way, $10,000 to get me a home, but I’m going to make two or $300 a month, but maybe somewhere, but as one of the odd casters would say, there’s no tenants, toilets or trash with this. I thought that was a pretty fun. Yeah, there’s no leverage to involve your buying. These ATM’s cash.

You can’t leverage. You could possibly, once you get more at this, you can probably get a business loan, I would think. But at this point starting off, it’s pretty lucrative actually has gotten my wheels, turning. It could be, you’re making about what a hundred. I got some random questions. The repairs do these things break.

What do you do when it typically breaks on these things? Usually around 10 years or so before you’re going to have to start replacing parts in the 15 years. And at that point you might replace a card reader, a piece that actually reads the card that goes in, or maybe the speaker, just little things.

There’s not major repairs that I have in made aware of. And obviously I haven’t been doing it 10 to 15 years, but there are people that I’ve met that have been doing it 15 to 20 years. I think that’s the most detrimental part about the businesses I’m buying this piece of metal and it just going downhill and it’s.

Something where I can just, oh, Hey, I’m going to upgrade this and it’s going to be awesome. No, you’re going to have to buy a brand new one and just start. It’s like a car, a depreciating asset. And when these things break, I’m sure you had little mishaps, like you just call somebody and they go check it out and associates, you don’t have to go out there and do diagnostics on yourself.

Cause you don’t know what you’re looking at. To technical support to help, but yes, I do everything right. That could be a hurdle for a lot of people. What if people are very technically inclined, they could just call a dude to go do that for them. I know that there are people that you can call that, do this kind of thing.

I haven’t done it. It’s not that technical. It’s more unscrew this and turn that and okay. Put that back in and screw it back on. It’s not your techie. That makes sense. But you got to watch your six in case someone comes up and hits you in the back of the head. Yeah. You wanna go when nobody’s around

Tips to Find the BEST WINE

https://youtu.be/Ndt8KOLU8mA

So you guys are the experts with this. Like, you know, I, I hear two big tips, right? From suppose the wine snobs, which everybody calls themself, a wine stumped. It’s like, hello everybody. I’m an audio file. What do you have apple air? Right. Not an audio file, whatever they call it. I don’t know why, so that people will say, Hey, find something that you like in your palette, doesn’t matter how expensive it is.

And you got guys who are more like, if there’s the numbers, right this 96, 97 points. Yeah. What is your opinion on like, all right. I don’t know what I’m looking at. How do I pick a good one? How do I go about doing. Yeah, it is really hard and it tastes is so subjective. So it is difficult to try to boil it down into a hundred point scale.

And obviously the a hundred point scale has been highly debated for decades. Now, I think ultimately it’s, it’s still very valuable for people because once you start getting into the high nineties, especially like that 98 point Dow. And especially if you start seeing that it’s got. Scores from three different publications.

So there you go. That’s the wine spectator to Canberra and Venus each giving a 98 point score. You can be completely confident at the very least, even if it’s not your taste. That is a well-made wine. There’s no flaws in it’s in balance. So there, there are a couple. Things that are objective rather than subjective when it comes to wine, like, is, is it oxidized?

Is it, does it have some sort of acetone issue? There’s all kinds of different flaws that can be in a wine that just make better characteristic of poor wine making. At the very least, when you start to see the high scores, it doesn’t have any of those problems. And that’s helpful at the very least there, there is something to be said about the particular, the particular.

Place that those scores are coming from. So some reviewers tend to give out a little bit more freely high scores than others. There’s not that many scoring publications that you have to care about. So you can pretty quickly learn what a 93 means from this place versus this other place. If you are more numbers, minded person, you can pretty quickly start to cut through the BS and see where those scores are actually in value.

But that being said, Yes. So use it on wine searcher and you can, this is where it’s great. You can see the price over time and then yeah, exactly. Wine searcher is invaluable resource for anybody. And what’s so cool about it is you can pop on there really quick. And see what people are paying for. It can usually see all the scores.

It depends on how popular and common the wine is. Thousands, probably the most famous port in the world. So there’s a ton of information on it on here, but then it’ll actually link to all of the individual sellers shipping offers you can see. And so we’re beating we’re sometimes there’ll be some stuff on here, like some random retailer in the middle of Kentucky.

And if you actually call them. I don’t even add the wine. It’s not, we’re not trying to beat those kinds of offers, but we’re definitely trying to beat all the real offers that are out there and we do a good job doing it. And I actually really appreciate that transparency. Yeah. If you guys are listening to this on the podcast or playing around with us on the unit, Version.

If you guys want to go to the YouTube channel or go to simple passive cashflow.com/wine, and we’ll keep this stuff for you guys to refer to, but we have we’re poking around wine spies.com and wines-searcher.com but school site. But one mistake I’ve made. I’ve bought some wine off eBay. I think it was like oxidize or fake.

I’m guessing I still drank it lately. I just been buying it from Costco.

Smart Tip for Your Student Loan

https://youtu.be/wSMWaqSP4cA

📍 And student loans, like you don’t have too much of it, but tell us a little bit, like where you started off with your strategy. Get to this. Yeah, so a little bit, it goes back. So I did a co-op program. So I, it was a work study. I did five work sessions over five years. And so I graduated with about 18 months of experience and they actually paid extremely well.

I was. Probably close to what a full engineer was making my final year. And they were also paying for my housing in Chicago, which was tax-free. So that ended up putting me in a position when I graduated college with a, roughly 20,000 in cash and 30,000 in student loans. And so I started rapidly paying down the student loans and then for the first eight months of my working career, And then I kinda got the bug of, I wanted a new car.

And I had always told myself once I paid off my student loans that I’d get a new car, but I ended up deciding that I wanted the car sooner. And so that’s when I took out a more expensive car loan for me. And so I, at that point I reduced my student loans to the minimum payment and then had been paying down my.

Yeah, man. What’s life without a nice car getting the financial independence. I actually just refinanced it from the, so I extended the paydown a little bit, so we reduced it from 6 55 down to 4 52. And so I’m just going to make the minimum payment on all of these loans with my plan and then take the extra cash and invest it. .

4 Reasons You Don’t Need a 401k

https://youtu.be/DK1Sb59GfzM

When I first started getting into financial independence, the first things you find are index funds. And so I just haven’t really looked at it since, and in my opinion, it’s not a significant dollar amount in terms of if the market dropped 50%. Yeah. I’d lose 10 grand or 15 grand. It’s not like I’m sitting there with hundreds of thousands that I would lose a ton of money.

Yeah. Let’s keep it on red mentality. Just let it ride significance. Not make sense. And also with my logical and with my mindset too, could I ever run my bank zero, like really low to invest in a deal. And so I’m always going to keep some cash available and this is being a little bit more aggressive and the cash is a little bit more conservative and all this stuff for you.

Like I’m getting really nitpicky. You’re not working with too much, but this is the foundation for when you get over half a million, then you won’t really care about all this stuff. If you were to take this and maybe think about taking the Roth out, because you’ve already paid your contributions into it and just taking it out cash to invest it.

We talk about this a lot. Why do you not want retirement accounts? Number one? You’re going to be retired well before you’re 50 on the way to your sending to get it. Number two, your tax bracket is probably a lot lower today. So you want to pay your taxes on it today, then in the future, number three, where this country is going, taxes are going to be going way up.

But what a lot of people don’t realize is number four, when you invest in a retirement account, you don’t get the passive losses from your investments. So that is you need the passive losses, especially from the syndication. To get out the simple, passive cashflow gravy train, which is all about lowering your W2 activity, come and paying little to no taxes.

You don’t get that opportunity to do that. Yeah. You got to get real estate professional status at 750 hours. You don’t get to do that until you get those passive losses. So that’s the fourth reason why you don’t do retirement accounts, but something to think about, like Richard, like just maybe take out the Roth because you already paid a tax on it.

So it’s not really that big of a deal. And at least take out the contributions. You not the gains because you take out the contributions. You don’t need to pay the penalty. 10% penalty. So drain that out. But at the same time you want that magic number. I don’t know what that is in your head, like 20 to 30 grand of emergency savings.

But if you have to increase it, we’ll then put money into your 401k via the match. .

Which is BETTER: Pref Equity OR Traditional Equity?

https://youtu.be/1JMzY_7b0XA

Another investor asked me one time. What do you think I should do? I’m torn between the two. They both sound right. Well, I asked them the question like, Hey man, how’s your job? Do you think you’re going to get fired any time soon? The company downsize? The reason I asked that as well. If there, if you’re a government worker or you have a pretty steady W2 job that arrived, if you’ve got your emergency savings account, few months of expenses, the kind of tie you over to find your next job, where you have opportunities to harvest some cash money from a Roth IRA.

Cash savings or he locked. You’re good. Put it in traditional equity, especially if you’re under a million or two network, you need to grow your money. Pref equity, 10, 11%, a great return. Personally, I think you can grow it better in a traditional equity. That’s what you should be doing. If you’re not to two to $3 million and above, you’ve got to grow your money.

You’ve got to use it now. You got to score more points. You’ve got to put up more points on the board. If not, you’re not going to win the game. And the flip side of that is say in an investor said, I worked for oil and gas industry. Things are weird or. I’m on a contract work this year. I don’t know what’s going to happen in six months.

Then I would say you should do the private equity at the stage of the game. Get your money working, get the cashflow. That might be a better way for that particular person to go. But again, it’s different for every situation. Every person has different. Ideally you’re segregating your portfolios. You see me?

See my portfolio. Sometimes I take more. Most of my portfolio is pretty conservative. Mostly stabilized cashflow. .

What Type of Company to Choose [Infinite Banking FAQ]

https://www.youtube.com/watch?v=48JCThIKbJE

Tyler, what type of company do we choose?

I was speaking earlier about the different types of product. In regards to the company, the importance of the company is you would want to focus and look at a mutual insurance company versus a stock insurance company. A mutual insurance companies are where the policy holders are basically the owners of the company.  Whereas the stock insurance there’s actual stock, and  shareholders are the ownership of the company. So there’s a conflict of interest there. There are basically four large performing mutual insurance companies where they have a proven track record on actual payouts not just illustrations and those for New York Life, Northwestern, Mass Mutual and Guardian are the top four companies when looking for that.

Again, it’s not only the company itself and each company has maybe its own different quirks and pros and cons. I don’t want people to get so caught up on the actual company because it’s the product. The process is also much more important than just the company itself. Policies within the same company or products within the same company if they’re not designed correctly will not serve your purpose. Might not be beneficial for you.

So the mutual insurance companies are those four that you mentioned?

Yeah.

Is there like a website we can go to? Where it’s like they are rated.

I think you could just go, you could Google top rated insurance companies, mutual insurance companies. A lot of times it’ll be a blend of the stock insurance and mutual insurance. It’s how they rate the companies could be different and even though at the top four a lot of them have their quirks. Some have flexibility in the sense of funding period allows a lot of flexibility there. Others have funding each within the year. You’re flexible. Some of the loans are handled differently between the companies. Some of them have different online portal so it’s not just the product itself. There’s some of those soft things that maybe make a company stand out for you personally.

And so the mutual insurance company is the ones that we’re used to. And I think some people will say, oh, they found this other company that has less requirements on the health screening and stuff like that. Those are like your lower level ones.

Very worried about a insurance company that doesn’t have a stringent underwriting process because it has a policy holder for a mutual insurance company. You are the owners of that, you want the insurance company to do well because you receive that back in dividends. And there may be some smaller insurance companies willing to forgo, maybe under medical underwriting, take  a little bit more risky clients on. But that may hurt in the long run as far as the policies overall.

If you guys have questions on this particular question, type it into the chat.

Importance of Policy Design [Infinite Banking FAQ]

https://www.youtube.com/watch?v=vYF5AaASUgk

Importance of policy design.

Touched about it earlier. As mentioned within the company, there are different products. There are limitations. The first one is an IRS limitation. Again, it’s still an insurance product. It has to be considered an insurance product in order for it to maintain its benefits.

You’ll hear it and if you exceed that it will become a modified endowment contract and it’ll lose those tax benefits. That’s something I mentioned earlier about MEC or the MEC. Then how you design the specific product, I think  for IBC or at least for a lot of the investors there, the main goal is to have the maximum cash value.

The death benefit is a feature of the product and it does help with generational wealth and legacy planning as well. But as far as the main design efforts, you’re designing it for maximum cash value. And the death benefit is a secondary benefit from that. Versus traditionally, when you design insurance products, you’re looking at what kind of death, the maximum death benefit you can get for the smallest amount of premium. IBC turns that upside down and says,  “how much funding do you want to put in for maximum cash value growth?”  and the death benefit is a requirement needed in order to maintain those taxable or the favorable tax requirement.

And so it is very counterintuitive and this is why Dave Ramsey says that whole life is a scam. He doesn’t know the legal way differently. And then the other lever that you can play around with is you can make a policy where you get big, higher interest rates. If you’re doing like an IUL policy comes in order for her to be able to talk about today. That’s when you start to skew the policy more for higher returns, the stock market. But when you do that, then you give up what the whole point we’re doing that for, which is to maximize the cash value to invest in deals and stuff like that.

Yeah! One more part. I did add down there with flexibility especially with investors and maybe non steady income, the flexibility becomes a huge aspect as far as what you need to fund annually in order to keep the policy enforced. You want me to have some flexibility in that year to year to help you withstand maybe some of the unknowns or the maybe large capital events that happened if we’re investing in syndications, for example.

The Two Main Policy Limits IRS/MEC Limit [Infinite Banking FAQ]

https://www.youtube.com/watch?v=5L9LH9t1_WE

Next question here, the two main policy Clements. Maybe define the MEC, what is MEC?

The MEC limit is really something that came out in the eighties from the IRS. That prior to the eighties, before the 7702 rule, you’ll hear that also is that there was no limit as far as the amount of funds you could put into a policy. The IRS put a cap on it and it’s really just a calculation based on the person’s age, gender, and death benefit. And it’s a ratio basically how much death benefit is needed. For that policy amount and it’s a seven year. And so they’re saying over that seven years, this is how much, the maximum amount that one can put into a policy with this death benefit and still be called and be considered a insurance policy versus prior to that law, someone could just put in a dollar premium and then put a $20,000 of paid up additions or the cash value part of that, and still be considered insurance. IRS put a limit on that. So that’s the big IRS limit that we do not want to mess around with in that sense. And it is a seven year lock so that’s where it may be called a seven pay lock or a MEC limit. Those are all basically the same.

Yeah so I’ll explain it a little bit different. I don’t know if this is the true story. All these politicians are making these laws to find ways not to pay taxes and they created this life insurance, but then they start to stuck all their money away. It’s like insurance policies, but that’s where the equipment strengths of this stuff at the whole thing.

The second limit and this is company derived. It’s the paid up additions limit so you have that the MEC limit and then what you hear is the paid-up additions limit. Two main companies we use, those limitations usually is one company is 10 times base. So if for base premium say at $10,000, you could put up to 10 times that in paid up additions  which is basically a cash dump. So you could put in $10,000 of base premium PUA, you could put in another a hundred thousand and PUAs  and that’s the company limit. Another company we use a lot it’s the 10-90. It’s 10%. It’s not really 10 times so it’s the 10-90 split is the max. If you have $10,000 of a base premium, you can put in up to 90,000 in PUAs. So it’s slightly less, but again, those are policy or insurance company limits. And then there is some flexibility. And that’s what you mentioned or Nash mentioned earlier that we’re just testing that out because essentially if you have a longer funded period that you’re able to maybe put in a little bit more and the companies have allowed you to do. Granted, you’re still locked into the target amount.

For Nash’s example, 116,000 for 10 years, that’s 1.116 mil total of funds who wants to put into the policy. If he puts in 150,000 year one, which is under the MEC limit, he’s not going to be able to continue to do that for all 10 years. So the maximum would still be 1.116 mil. So in those later years, he’ll be putting in less why he’s doing that would be because you want to front load the policy, have the compounded dividends start earnings earlier and it’ll have a greater effect down the road. So that’s one of the benefits to it.