Unlocking the Power of Whole Life Insurance: How Infinite Banking Creates Generational Wealth |Titan

So while we're getting this, all the technical things worked out, I'm really excited for all of you to meet one of my favorite people and talk about one of my favorite things, which is a way for us to actually create multiple streams of passive income for, you know, for ourselves and our families, which for all of you who know, you know, that that's, like, super important to me, which is really exciting. And one of the things is, through an unconventional. What a lot of people. I mean, a lot of people. I shouldn't say a lot. A lot of people don't know about what this is. And there's quite a few people in the circle of investing who do happen to understand this. And I feel like this is one of the subjects that we could continue to learn more and more and more about. So I'm excited to have, you know, again, just somebody with a good heart coming on. Not here to sell us any, just literally purely teach us about this actual asset class. So this is Tristan. Tristan and I met. How did we meet? We got introduced somewhere, somehow by someone.

It was about three and a half years ago at the pitch at the Winkles event.

Oh, there we go. Okay, good memory. Again. It's all the networking. You never know who you're going to meet where, which is why getting out and having these conversations and meeting these people is really extraordinary.

So.

So you've come to a bunch of my different things and the cash flow things, and you're just a lot of fun to hang out and be with. So I'm super excited that you're going to come on and hopefully help teach a new layer of infinite banking and how we can use the bank's money, opm, other people's money to be able to leverage this to create multiple streams of passive income. So thank you for being here and, you know, for. For everything that you do. So I'll let you go ahead and take over.

Sure. Perfect. If we can bring the slides up, that would be amazing.

Do you see it?

No. I see a desktop with rotating images. Bell Community Empowerment foundation at the moment. And, well, then cartoon characters.

Okay, that wasn't what I was trying to share. Technical difficulties. Okay, let's try this again. Desktop share.

I recognize Laura's name. Fantastic.

Okay, so you see it now?

Yeah. Thank you very much. Yay. So wonderful. So welcome, everybody. Thanks, Catherine, for having me on your webinar. It's a pleasure to be a friend with you and to do business with you and to educate and share my knowledge with others. That's how I Got my knowledge and that's how it's important for us to share that with others. And you know, there will be impacts in some people's lives, there might be impacts in somebody else's life that somebody mentions this to that doesn't take it on themselves. And it's the joy of knowing their ripples beyond our view which, which happen from these conversations. So, so whole life insurance, it's, it's a little known thing. The life insurance is very known by many people because it's when somebody dies, when the life expires, the insurance insures against the cost of living in a basic level for those that are left behind. So why life insurance is more than a death benefit? Well, life insurance comes in many ways. We've got term life, we've got group life, we've got different ways that we can buy life insurance. And term life, it is for a fixed period of time, it's not constant and there's no cash accumulation. And what is cash accumulation? I've mentioned that a couple of times, so I'll come back to that in short time. But the term life ensures somebody's life for a term, whether that might be one year, five years, 10 years, or whatever that policy is. It expires without any money coming back to the person that took out the life policy if they don't die. And that's really a term life policy. It's for a length of time and it's just in case, which is insurance assurance is something that is going to happen. Insurance is something that might happen. So insurance is telling us that if somebody dies in a term life situation for a given period of time, that money will pay out to the beneficiaries which are listed. Group life is when we have an employer provided policy where there are a group of employees and they similarly have potentially a term term group life where people are in a bucket. They spread the risk of people dying and have more money coming in. But there's often a tax benefit to companies, how those are structured. And again, the term in this case is more of a seasonal term. When you leave the employment of the company, that is the end of your coverage of that policy. Sometimes in rare circumstances you can transfer that to a new employer or take that on as a personal policy, but it still has that similar level of coverage where if you die within the time that you're paying the policy premium, somebody gets money and you don't benefit from any of that. You just put the money in and it sits there in the insurance company and it's kind of like buying a lottery ticket. You buy a ticket, you might win, but when the lottery is done, there's nothing to walk away with. You're done. So that brings us on to whole life. So whole life, when the premium is paid consistently, you can have a lifetime of coverage. And in this case, we can do what we call paid up additions so that we have a death benefit. So if, in case somebody does die, there is money that's paid out. But we can also build the policy in a way that appreciates capital by paid up additions over and above the policy premium, which gives us a living benefit. And what do I mean by a living benefit? In a whole life policy, which normally covers death. So the benefit of building up a cash value, in my case, I put about $750 in to my policy every month, and that is built up to way over $50,000 in cash value right now. And imagine I put 50 grand in the bank, 750 bucks a month. I might just, you know, put it in a cd. It might be a regular bank account. And as you know, if I borrow money from the bank, they're happy to charge me 6 to 8 to 10% to borrow it. But when I put money in with the bank, they're only actually giving me maybe 3, maybe 4, maybe 5% at this time. That's if you put it in and lock it up with them for a very long time. Because what do banks need to make money? They need our money to make the money. So why would I compare that to whole life? So I'm not sure if you guys are familiar with collateral. The most common use of collateral is a house. When we take out a mortgage on a house, we have two pieces of paper. In Arizona, we have a promissory note which is what promises to pay back the money over time. But the collateral part of it, which I'm relating to is the deed of trust, which is what enables the bank to take the property we stop paying. Now the collateral in this situation is the money that we accumulate in the paid up additions. We never take the money out of there, but the living benefit allows us to borrow against that. So our money becomes the collateral. And the life insurance company will let up to the amount of money of the cash value in a collateralized loan. So we're not actually taking our money out, but it is continuing to build interest, build growth over time, Whether that is through, you know, the life insurance companies, investments that bring back us a higher value. Or there are sometimes, if it's a mutually owned company which is owned by the members, not for a for profit company. There are dividends paid into those policies which again gives us an additional value. So an introduction to the infinite banking side of things. And that's really where we're having the over and above the whole life policy. So it does secure the benefit of your death over, over your, the life of the family, the lifetime of the family that survives you. So how does it protect them? A life insurance policy is valued on the value of your life. That is what you're earning and what you're making at the time and potentially what you might earn in the future. But we can't really go beyond what you're earning now because that is your value of a life. But that's why we can use other terms, term life. And I'll come back to that later on to build up further value. So it grows, it grows while you're not using it and while you are using it. So a collateralized loan from an infinite, from an infinite banking policy would be to borrow say 25,000 from your 50,000 in there. The 50,000 continues to grow over here where your 25,000 comes out, goes into your bank account. Unlike a regular bank loan, you don't have to make an application other than make a phone call and say I would like a loan against my policy. So that allows us to take that money and leverage the money that we have in our infinite bank policy. If you pay for the wedding or the part thereof is, you don't have to apply to the bank to tell them, I'm buying this thing, I think it's worth this, and I'll pay it back over time. You don't have to ever repay this. All they do is reduce the death benefit by the amount that you're borrowing as a collateralized loan. Because remember, your money stays in the account. They just kind of earmark that in case it's not paid back so you can invest in assets. So what I do, I take money as a collateralized loan against my life insurance. I'll go and invest that in a rental property or a flip and then I return the money to the, to the collateralized loan. So I pay myself back effectively through the bank, which is my policy, and then I can make a profit on my flip. I can make cash flow from a rental property or anything else that I want to do with it. I can buy stocks if I really want to. But right now I don't think many people are thinking investing in stocks. But maybe now is the better time to invest in stocks. I'm not talking to you about where to put your money, but when things are low, you know, real estate, stocks, bonds, maybe that's the time to look at these things. But let's look at, you know, firm assets, which are very helpful to us. So we say, become your own bank. So I said we can borrow money from our own policy so we can become a bank investing in assets. We could use that money for, like I've said, real estate. I could go and buy a piece of equipment for my business, whether it was a, I don't know, a jackhammer or a truck or a computer through the business or through, through my policy and loan that money to my business and have my money pay my business back interest. Instead of paying a third party finance company interest, I maintain that wealth. I don't have to charge myself interest, but I'm obviously paying a small amount of interest to my policy to borrow the money. But that interest is going to me, not Wells Fargo or Chase or another big national or international company that isn't really going to benefit us in any way, shape or form. So repayment with interest. We. It's just like I've just said, we're gaining the interest on the loan instead of a major bank. How many banks take you out to dinner because you paid so much interest to them? Because, thank you so much, Catherine, for borrowing so much money from us and paying us so much interest. You know, we think we should take you to the Caribbean for a couple of weeks because we really like that. Well, they're not. They're the ones that go and buy the Caribbean island or the boats or whatever it is. Why shouldn't we hold on to that money instead of giving it away?

Right.

Opportunity cost. What we're not doing with the money ourselves is taking control, becoming more educated. And it's not to say anybody is stupid, but the education system is really set out to keep people from knowing the way to think instead of just remembering things and, you know, you know, knowing how to pass the test instead of how to think around the problem which is presented in the test. Does that make sense to everybody?

Yeah. How to be a good factory worker. That's what schools are for.

Yeah, absolutely. Worker bees.

They don't want you to think, they just want you to get the right answer.

Yeah, yeah.

So let's talk about a real example of this.

Yeah. So the Rockefeller family, somebody might heard of them. They. They're pretty well to do, I think Anderson, what is his name somebody? Anderson, the journalist is a Descendant of the Rockefeller family, I believe. So let's look at real life examples. Many families and businesses use infinite banking. It's really a tool of the wealthy that allows them to be their own bank. And it's available to everybody, everybody who is willing and able to put change the way they look at their cost of living, to make decisions now which enable them to have an easier and better life down the road. So many of us make easy decisions now, which makes a hard future for us. When we can make challenging decisions, thoughtful decisions, and considered consideration over what we're doing and how that impacts our future, that's when we can change our future. Excuse me one second. So the Rockefellers, why have we raised them as an example? So for generations they have used infinite banking to support and build their family wealth, their family legacy. They are basically using a foundation of trusts. And if you're familiar with the term trust, it could be a living trust, a revocable trust, an irrevocable trust. And I believe in the case of the Rockefellers, they use an irrevocable trust, which is something which is set up. There are trustees who are basically the managers of the wealth. And they use infinite banking or whole life policies to ensure the life of a newly born child. And that policy is built up over time. And there's a network of policies on different people's lives. And everyone is insured within the family. And all of this has more of their wealth from their investments poured into these life insurance policies because there are some major tax benefits in doing this. So by lending from their network of policies, they allow when somebody dies, for that money to pour back into the irrevocable trust that then builds that bank by another, probably several million dollars or tens of million dollars in the case of their value. And that just exponentially grows the family's wealth across generations. Now there's, there were the Rockefellers in, I believe, give me one generation of Americans, we'll change the way America thinks. And that was in the education system. They changed the way the education system to work, to create those worker bees. Now imagine we made that change financially. We don't learn financial literacy at school. How to handle money, what cash flow is, what compounding interest is. There's a, there's a, I think a quote from Einstein roughly says compound interest is the eighth wonder of the world. If you understand it, you earn it. If you don't understand it, you pay it. And compound interest is, is an amazing thing. If we're making that money and if we can set ourselves up even from just the foundation in this generation head around financial literacy, which many of us have, many of us don't. But if we can understand how to strategically leverage money as a tool instead of a survival tool, that way we can change the way the next generation works. We know don't listen to us, they do what they see us doing. And if we can change the way that we relate to money, change what we do with money, they can then follow our lead. And then naturally when they have children, they will naturally already be in that mindset of understanding money in the way that we learned. And then they will hopefully continue to do that generation by generation by generation. So Walt Disney, they developed their parks and their businesses through life insurance policies. J.C. penney, he saved his business because of the cash value of his insurance policy. He was able to borrow money against the life insurance to then support the company and then pour the profits back in once the economy picked up and replenished that value. And modern entrepreneurs like me, Catherine and many others, we're learning about life insurance, some of us already using it and it's a way that we can create tax free wealth. There is some tax liability, so I'm not want to mislead you to think there's no tax liability. But on the basis and the growth, we have a tax on certain areas outside of the basis. So using policy loans to fund businesses, we minimize our tax liability. So 401 s probably the most common retirement plan that people have yet it wasn't designed for retirement. The 401K was designed to feel and I'm not even from this country and I've learned these things over the last five years. So the 401k was designed by the government to kickstart the economy following the depression so that the company that you work for is ideally making a contribution to your 401k that gives them a massive tax benefit. So whatever they put into your policy is a tax write off for the company. So we already know that it's not centered around us, the consumer. The second thing is that it's pre tax so you don't pay tax on the money you go in. So you think, oh, I can put all of that dollar in that I earned instead of the dollar less the tax up front. And then we realize when it's time to take the money out, we're in a very high tax bracket because we're at the end of our career, we're earning the most money we possibly can. And now the government wants their tax and they don't compound. They really don't compound like we are led to believe. So they are invested generally in mutual funds. So if you imagine Facebook over here, Facebook was created by Mark Zuckerberg. Mark Zuckerberg has the most control over Facebook and makes the most money from Facebook. Then he's got the venture capitalists that invested in his company. They have a pretty good say on what happens with Facebook because they put the early money in. Then you've got preferred shareholders, then you got regular shareholders, then we got mutual funds. And then you're even past the mutual funds where if you can imagine how much control or profit you're making from Facebook's decisions, you are at the end of the line. You have no control and barely making any profit from investing in these things. And the People money on 401ks and the mutual funds are the people that you're sending your money to to look after it for you. It's the tax and fees that they're making of of your money and that is what removes the compounding. Plus like we had a couple of weeks ago, market dropped. So some people lost 30 from their 401k in one day event and now they've been set back 10, 15, 20 years depending on how long they've had. So let's look. We've looked at the market risk, the volatility, and you are very limited in your investment options. I'm not saying that 401k is wholly replaceable by whole life, but it's an alternative and it's one of those areas in which we should diversify our investments towards our retirement. So the liquidity, you can't pull any money out of your 401k until 59 and a half. Well, technically you can take a loan of $50,000 or 50%, but it's a loan against the policy. The good thing is you pay yourself back in interest, but it's really not available for you to use. And 50 grand is the limit. So it's 50 grand or 50%, whichever is lower. So in the term of whole life, like I said, you can call them, you can say, I want to go on around the world trip, give me the money and they will lend you the money there. And then it takes two or three days to ach it to your house.

So we don't want around the world trig. We want you to invest, buy assets that provide passive income and the passive income from being a favorite.

So yeah, but you know, if you really needed to do that, and that's what you wanted to do that's available to you. We're looking to get you into investing that money into real opportunities to make passive income, which is going to make a huge difference to your life. Roll more money potentially back into your whole life policy or create new whole life policies and allow you to talk to people like Catherine, fund managers and really get an idea of what you can do with that capital to create passive streams of income. Passive streams of income are the key. If you've ever read Rich Dad, Poor dad, you may have heard the term assets versus liabilities. That was the book that changed it for me. Everyone tells us that your house is the biggest asset you'll ever own. That's wrong. It's the biggest liability that you'll ever own because you pay to live in the house, you pay to repair the house, you pay the bills. The best thing you can do outside of having their own home is to buy another house which somebody lives in and pays your mortgage on that second house and gives you positive cash flow that helps offset the cost of your personal house. That might be a first step. And then maybe buy multiple houses. Or if you don't want to be invested personally in active investing, which is buying your own properties, look at passive investments which might be, you know, real estate, multi, family, commercial, other things. And the nice thing that comes along with investing in real estate is there are a lot of tax benefits. So you can lower your tax bill, keep more money in your pocket. As, as Kiyosaki said, it's not what you make, it's what you keep what you keep in your pocket. And that's the most important thing. So being able to pay a little bit more tax up front to put to have control of your money will pay you massive dividends over time, potentially millions of dollars of dividends if it's put in the right place over your lifetime. My brand is midlife to millions. And the reason that is is that when we retire, we might be retired for 30, 40 years, maybe longer. With medical technology coming on, we will need millions of dollars in cash flow and we will need or a stack of millions of dollars to be able to sustain our life outside retirement. Most people think retirement is an age of 65 or 67, but really it's an, it's a passive stream of income, hopefully from multiple sources where if one dies, there are others to maintain that income that pay for our retirement and pay for us to live without having to work. So what can you do now? Well, We've got a Q and A which will go through any questions, answers, and maybe look at a case study. If people have got some questions on their particular situation, we can do an overview of general idea or schedule a consultation, go through Catherine's portal, set up a time. We can look at creating a policy design for you that makes sure that fits your needs. And then we can potentially look at implementing. But we're not here to sell today. But this, if you're interested, is the path that we can go down. So.

So thank you for coming on. I feel like every time I hear this again, it's like, you know, I learned about this forever ago and it's planting a seed and then continuing to water and continuing to get educated and really understand it to the point of like, wait a second, like, I literally can use other people's money, essentially the bank's money, to be able to grow my portfolio and build those passive streams of income. So, again, just another beautiful tool for all of you. We're doing a webinar. Again, the extension of this is on Thursday at 12pm Pacific. I put the registration in the zoom or I'm sorry, in the chat. So go ahead and click that, go ahead and get yourself registered and bring your questions. Tristan's been beautiful inside of, like, being able to educate and be able to, like, look, at least these are the things, these are situations. And then here's potentially how it can all be structured. And there's lots of different ways to structure it. And the thing to understand it's this isn't a cookie cutter thing. You need to structure it specifically for your particular site situation and your goals and outcomes and what you're looking for. So you want to be really careful about that and make sure that it's done from the standpoint of what's best for you, not essentially what's best for the salesperson selling it. So that's my little soapbox. So you want to make sure you're getting the best advice. So with that, thank you all for coming. I hope this was valuable. Please share this. I'm going to have it posted. Share, share, share with anybody that you think that this would be valuable for. And hopefully we will see you Thursday. So with that, thank you everyone. You're amazing and I hope you have an extraordinary day.

Thank you so much.

Okay, how do I stop? It's not letting me stop the recording.