Nelson Nash: Teaching Your Spouse How To Be A Widow (29 of 30)

Y' all remember I'm teaching Mary how to be a widow.

I'm teaching Mary how to be a widow.

Now that first three months was rather difficult mentally to get her to understand that how things work and so forth. And so this is Mary's picture upon my graduation.

Now, back then in 1980, I owed half a million dollars at 23% in real estate.

Shortly thereafter, one of the partners in my real estate venture that you couldn't use money on.

He owned. He's a big name lawyer, principal, firm principal in a firm in Birmingham, Alabama.

He owned 35% of our partnership. I felt very comfortable having such a person in business with me. Nate, he bankrupted on us.

The rest of us partners had to eat his portion. My share was 300,000, 23% interest. Now, if he'd done that third grade with the rent to take 500 plus 300.

All right. What I saw back there, Wayne, was that I could get the money at 5, 6 and 8% from three different life insurance companies. Now, the only problem was I had not paid enough premiums to be able to completely get rid of those so and so. Now when I say so and so's, I mean that I run a genealogist check on those guys at the bank. There's canine ancestry in their lineage.

No, that's accurate. They're not nice people.

So what I sold Darrell, I had to crank up lots of premiums.

And from that I could borrow it to pay them off incrementally.

Now, you can't do this overnight. This is why you must think long range action. It took me 13 years to get rid of the banks.

Now what I was doing was I was taking debt that I was owing to banks and switch it to place that I run the show. Okay? Now, I took that energy that was paying the the banks and I took that what I was paying them plus what I'd be paying for life insurance anyway and pay off loans. There are no loans.

There are no policy loans at that day. Okay?

Now, during this period of time.

We gave the charitable causes over a million dollars.

We gave away over $750,000 in cash values to family members. No tax qualified plans were involved in this scenario at all. Zero.

Now, you might say Social Security is a government program. But didn't I demonstrate to you last night that I canceled out that noise?

My income from.

Social Security exactly offset taxes. Well, that's a form of noise canceling, isn't it?

You see, how to teach people how to build a noise canceling headset. Financial Noise canceling headset.

Now this is all accomplished by obeying the principles of energy banking concept. And this demonstrates the power of the concept. This is what IBC is all about. But it's also deeper than the things that we talked about, about what goes on out there in the big wide world of nonsense that's happening and how we can change the thinking of people. In fact, the logo of the Valent agency in Birmingham at the bottom of it read changing thinking, changing lives.

And so I picked up on that a few years ago when I first looked at the logo and stopped noticed that. And so I asked Johnny Allen, how long has this been on your logo? He says, since we met you.

Okay, so if I don't make it home.

Today or tomorrow or whatever, and renewal commissions out there for one source, 30,000 annually. Well that's conservative because now at this particular point it's 50,000.

Broil has been booked. 12,000 a year. Well it should be probably two to three times that much.

Guardian life renewals. Thousand dollars. That's also a little bit on the small side.

Social Security, I was including here, 30,000 a year comes in, but that's exactly the kind of taxes she's going to pay. And so they cancel each other out.

Now, Mary owns 1.7 million on me.

Now.

Just using.

Conservative figures, let's say that.

3% guaranteed.

Leaving the money on deposit with the insurance company on the 1.5 million to produce an income of 45,000 a year, right?

And then there's the guardian retirement that she's entitled to 8,000 a year as long as she lives.

Now let's suppose that.

She went along with what I just said. 45,000 a year coming from interest alone on the death benefit of say 1.5 million, just to round it off to figure to talk about. That's going to be taxable, isn't it? Right, Glenn?

Now I told you that. So this is a work in progress for all of us, right? Yep, work in progress.

Yeah.

So after I thought this thing through.

And did some inquiries, asked my accountant and asked the folks at home offices of two different life insurance companies, what if Mary goes ahead and just gets the money cash from the one more that said opinion.

Now what if Mary writes our three children a check for $500,000 each?

There's no taxation to speak of at all on that.

You know how I don't you trigger gift tax. It's very, very minimal. I checked it all out, take my word for it. I you'll if you need me to go show member up. I mean to show you my research. I will do it, but just if you'll take my word for it. I'm married to an American, so it's an issue. All right.

Okay.

All right, all right. So she can write them a check for $500,000 each.

Now I say to our children, our three children, can you be a real sport.

And hug Mary? $15,000 a year as a gift.

That's not taxable. Well, we just did away with all that taxation. It would be on that 45,000 a year, didn't it? Now ignored that before.

This is work in progress. Now where you hear this from anywhere else out there?

Where do you hear this sort of stuff out there anyway?

Okay, now.

Anybody got any questions about this thing at all?

There is no mortgage out there. The house is debt free. She's got a car that lasts her 12, 15 years, no problem at all.

And everything's new, including new water, heat, water.

Is that a pretty good plan?

It's a pretty good plan.

This is what you can teach people. Now isn't that a peaceful stretch free way of conducting lives?

Yeah.

You do it through free contract with other free people.

It has stood the test of time. Whereas all other things out there tend to perish, don't they? Yes.

Richard, this is an awesome summary by the way. Nelson, thank you so much for that. This leads me to think about some of the things you've talked about over the years. And like fee foundation for Economic Higher Education has a policy on you as you mentioned. I think there's a church that's got a policy.

Church is only significant policy on Mary for so about 40 years or so. Yeah.

And I think some of your kids have policies on you.

Oh, yes, yes, we had talked about that. All of our children on policies on.

And also.

There'S life insurance on Mary. Well, she's going to graduate too.

And so there should be at least 300,000 each coming to each three kids from that one source alone. And this is all done because of the mindset that was changed by yours truly back there when I put all this together.

But I had to go through all that resistance out there in the minds of people that I talked to this about.

It wasn't fun, but it's fun. And I. Your problem with us, we know.

All right. Any questions about this at all, feel free to do whatever you want to with this. You want to show.

Your clients and prospects, that's fine with me. Thank you. No problem at all.