Top Financial Guru Reveals How to Become Your Own Bank in 2024!

Most financial advisors are giving business owners terrible advice that's killing their growth potential. They are probably doing decent advice for employees, but when it comes to business owners like yourself, we have a whole different strategy. And you know, they might be telling you to diversify outside of your business and do all these other things that fund other people's businesses that are out of your control. Now the ultra wealthy are actually using a little known banking strategy that keeps capital, their own capital, working for them. It's exactly why I've been talking about this pretty often on the podcast, Different Wealth Strategies and why I invited wealth strategist MC Lobster onto the show today to review exactly how business owners can take control of their own capital and stop financing other people's businesses. So you can take control of your own capital wealth, generate that from within and within your own control.

I mean, that's what we all want. So we have freedom through all that.

So he's going to break it down.

He has a bunch of books, he.

Has a bunch of podcast episodes as well. He's going to tell you all about it in the episode. Before we jump in, I want to urge you to pause this and go check out the AI clone that I built around this whole podcast, totally free, has this episode you're about to dive into, plus 600 plus other episodes all.

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All right, MC, we're doing this. I'm so happy that you're here, man. And the first time I met you, immediately I realized you think differently in terms of how to leverage your business. Leverage everything you're doing, especially a cash flow. Speaking on that. And.

There'S what. I don't know if he'd be considered your partner, but Dave Wolcott was on the show recently talking about all sorts of financial strategies, Infinite Banking. Then he pointed me to you. He's like, this guy is the mastermind behind the machine of so much. So happy you're here, man.

Awesome to be here. Thank you so much for having me. I've been looking forward to our conversation.

Yeah. And we were, we were just chatting through some of the things that you're working on right now, some new stuff. And I think what we were talking about is like a lot of business owners, we get stuck in the, in.

The day to day.

Like we get stuck in the, in the doing. It's not like a bad thing, but it's like we get good at what we're good at. Right. And we don't sometimes slow down to analyze, wait, how's the business doing? What are the mechanisms that are happening? Maybe the structure of my business where the money's actually flowing in, out, and maybe in between what's happening, there's a gap there that most of us don't really understand or have a plan for. And you do you have a lot of plans for this stuff. So I think it's very timely for folks right here. But what would you say, you say that's like a kind of a good starting point or overview of what we'll be chatting about?

Yeah, absolutely. I think that business owners start businesses that they're extremely passionate about and they're grinding and they're sweating. It's blood, sweat and tears and so, so much hours go into it. And if business owners listening to this, they know the work involved and, and just running it and getting it up and running and getting it profitable and just move, keep on growing the business and working in the business that sometimes we forget to just take a. Just press the pause button, not the stop button. Just pause and step away and look at what we're doing and what we're doing. You know, as a business owner, the CEO, the leader of the business, what, what we're doing to, to grow the business with. Right. And what are we using from a finance standpoint? And I think that's one of the things that I love sharing to business owners is, look, there's a lot of things from a financial standpoint that you can do that's right in front of you. And it's little things, but it's going to make such a massive, massive business.

And difference for just having more control, having more control over the business and the direction that the business is going and having more control of the growth of the business.

Yeah. So there's, there's two things there. I like the control aspect because I want to get to that. But before that, it's hitting that pause button. I think, you know, it's not necessarily saying everyone's in hustle mode, but you might just be in that mode of growth. Like, hey, I'm growing my business. I'm really focused on this project or have these opportunities, or I'm drumming up opportunities maybe early on. But then, yeah, you're not hitting the pause button to work on your business. You're more in it. You're doing the stuff. But, and I know I'm guilty, I was just chatting with my wife about this. She's like, I think it'd be good like once a month to have like a dedicated day where you're just looking at the business and really engineering. I mean, there's probably all sorts of categories, but this one we're talking about, you know, things like cash flow and having control. Now going over there. But what are your thoughts on that pause button? Like, how do you coach people through that? Or what have you seen as like, effective strategies there?

Yeah, absolutely. So here's the first thing that I would share with business owners. So I mentioned how everybody knows you start that business and the blood, sweat and tears that you pour into it and you're working really hard, you're in startup phase and at that stage you look basically like broke on a financial statement because you're all in. I mean, that's the way to get things off the ground. So nobody wants to talk to you at that stage. Right. There's no, I mean, financial professionals, legal professionals, tax professionals, they're looking and saying there's not much we could do here for you. Then you get the business off the ground. The business starts to generate really good cash flow, it becomes profitable. And now you're like, you're growing the business and you're kind of in growth mode. And during growth mode, you become very, very successful. And at this point now every single financial professional, legal professional, and tax professional is banging down your door to just to sit down with you. And when financial professionals then get to sit down with you, they tell the business owner, well, here's what we should do and here's what we proposed. You've done really, really well starting this business and growing this and scaling this business. Let's take some money out of the business and diversify it outside of the business and give it to them so that they can manage it. So what they then do is, is put it in a diversified portfolio of stocks, bonds, mutual funds, ETFs and index funds. And at that moment, this is a very, very crucial thing to realize. At that moment, you have financed other people's businesses. So I love Apple. I love Tim Cooks Apple. I've all of my accessories is their Apple. I use Apple products. Yeah, absolutely, I love Apple. But Apple doesn't need more of my money. I don't need to finance Apple's operations and their growth. My own business does. So it's a big paradigm shift for business owners to think about is like, oh, well, where would I put my capital that I can access it to grow my business, finance my operations? If I have to bring in AI and invest in that, how do I do that? If I have to hire more key employees to grow the business, how do I do that? So that's like the first thing is the money flows out of our businesses into other people's businesses through the advice that business owners get and 99% of financial advice that business owners get. It terrible. It's terrible advice because at that stage I also see the businesses really where they were just getting hockey stick growth, they all of a sudden stop and just kind of like stagnate.

It's like a lack of focus, it seems like too right. And not only your money's exiting, but potentially your, your goals. You know, the focus of what you've been thinking about growth wise in your control. Now you're kind of like spreading everything out there.

There is also no bigger return that you can get anywhere else as a business owner than in your business. It's impossible. I have, I have clients all over the United States. We work with clients all over the U.S. we have business owners in many, many different industries. I Look at what they are doing in their businesses and the returns, that there's just no other product that somebody's going to sell you from Wall street that could get you a bigger return than what you could get in your own business. The other thing that I would also share with business owners is, and I have these conversations all the time, and I've been a business owner too, for almost two decades, is, you know, we all know in our businesses, when we operate it, what our biggest revenue month is. All of us know. Yeah, you know, we know that this is the month where. This is it. This is where we, we. We're shooting out the lights at that point. Right?

Focus.

Yeah, yeah, we know. You know, and most people, when they're listening to this, they could probably name their month. Like for ex. Example, my. My month is the month of May every year. That's our highest revenue month. And then also in reverse, business owners also know when their lowest revenue month is. We all know. Like, again, for example, I can tell you August is my lowest. I just spent the entire August in South Africa with my family, visiting friends and family there because I know that there's not a lot going on. So that's the month I pick for vacations and so forth. There's really not a lot going on. Now there's these seasons of cash flow in a business, but your operating expenses stay the same, your overheads stay the same. So some months you're doing really, really well, other months you're not. And when I have this conversation with business owners, I said, well, what do you do in the lower revenue months? And the answer is, usually, well, I might have to tap into some of my savings or I have to go to the bank to get a line of credit, and we just finance that. We take on debt to get through those months, and then all of a sudden, revenue starts to pick back up and then we pay back the debt.

Yeah, that's the common thing. You see offers coming in PayPal, working capital, whatever it might be that people have access to or that you're comfortable with.

Yeah, exactly. So then the, the, the question then becomes, is where can you position capital as a business owner most effectively and efficiently to allow you control over it, to grow and scale your business, invest in technology and hire more key employees, and also utilize it for cash flow in case you need it to become your own banker during these lower revenue months. Because in the end, you know, if you position things effectively and efficiently, you get to profit from it and it becomes an asset for you instead of you then becoming an asset of someone else, right? Another bank. So that's the big message that I talk to business owners about all the time is, you know, you've got to figure out, and these are two very small things, just two little minor tweaks, you know, that people can already think about that will make a huge difference in their business.

That's huge. MC so the one line you just said is becoming your own banker. And Dave Wolcott, when he was on the show, I definitely urge folks after this conversation, go listen to Dave as well. That episode came out recently. Define what becoming your own banker is. How does that apply here? What do you mean by that? And then what can we do with it?

Yeah, you know, becoming your own banker. A lot of people have heard of infinite banking. Bank on yourself. The private reserve strategy, I call it in my newest book, I call it the Get Wealthy for sure Strategy for Business owners. So basically what it is, is you can warehouse capital in life insurance contracts, policies. So you warehouse capital in a mutual life insurance company and you use a dividend paying whole life insurance policy with that mutual insurance carrier. Now this is very, very important. Mutual insurance carriers have been around since the mid-1800s. They've been profitable every single year consecutively since then, paying out dividends to their shareholders, which are policyholders. So if you just think about that for a second, right, what has happened since the mid-1800s? Like we had a civil war was happening in the United States, right? There was two currencies circulating, greyback and greenback. This was before the creation of the Federal reserve system in 1913. You've had two world wars, you've had all these economic crashes, you've had the Great Depression. You had a new financial system being born with the Bretton woods Agreement. In 1944, you had the Richard Nixon gold moment, taking the wheel of the gold standard. In 1971, you had the creation of the petrodollar. In 1974 you had all this stuff. And these institutions were still profitable in and managing their affairs. So that's your counterparty, right? So you have a policy which is structured very specifically for cash value. So we're structuring it like it's a supercharged savings account. Most people think life insurance is, you know, there's a contract, somebody has to pass away and die for somebody else to benefit from it. Right. Or get a payout.

Right?

But there's a different way. This is basically where you warehouse capital and you warehouse it inside of these policies, which is very specifically designed and structured because the, the cash is guaranteed in there. So your capital that you put in is guaranteed never to go down in value.

Wow.

You're guaranteed growth on it. Dividends, which is not guaranteed, but these companies have paid them since the mid-1800s. One. One carrier since 1847. And the growth and the dividends are tax free. You can access the capital tax free through a line of credit, which is almost like tapping into home equity, like a heloc. And then also from a contingency standpoint, you're able to add things like a disability waiver to the contract if something happens to you that the insurance company then pays the policy. And then there's a death benefit, which it's still a life insurance contract, but the death benefit goes tax free to your beneficiaries. So it's a private contract. It has asset protection in most states. I can see in the next, you know, six to 24 months that a lot of business owners will have targets on their back. Litigation. It just does. Every, every economy that's taken a downturn, lawsuits increase. It's just, it's. It's part of the world that we live in. So you want to have that too. But this, this is a vehicle that provides so much certainty for a business owner, so much predictability, so much clarity. Because all of a sudden now you're like, wow, okay, so if I plan my cash flow correctly and I position it here, I can tap into at any time to grow my business. If I have down months from a cash flow perspective, I can tap into this instead of running to the bank begging for a line of credit. So I always will have access to finance things for my business. And then the other thing is, if something happens to you as the business owner, if you become disabled or you, or you pass away, what does it look like for your family and the business? So this provides a lot of answers to that, you know, and, and if you have partners, the same thing to. This is a conversation to be had. What happens if somebody, if one of the partners become disabled or they pass away? Yeah, you know, where, where, where does, where does the liquidity come from for this contingency strategy that has to be employed at that stage? Where does the liquidity come from to buy out another partner's family? So this provides a lot of clarity, which leads to a lot of confidence for business owners, because all of a sudden, they know that they are the producers and the creators, they are their best investment, and their business is their best investment. And they have all these very, very predictable and Certain things now in place to go out. And just now you can go out and crush it as a business owner and focus on the growth because the financial stuff and the defensive structures are all in place that.

Okay, so it's funny you said defensive structures, because that's kind of where my head was going is when you have certainty in your business and not wondering, oh, is the stock going to go up or down? If you're investing in Apple or whatever it might be, Nvidia or what, you know, you might feel like you're in a great position and things are looking great for the future. It's like. But you don't know. You're not in control. And if you have this kind of system set up, this, this life insurance policy with, you know, structured in this way, you're warehousing your own capital, but you also not only growing that capital, you have all these other benefits you're mentioning, like the tax side of things. It'd be curious. I want to hear a little bit more on that. But you have access to it at any time for all sorts of events. You are controlling that capital, not someone else. And literally you can get it out almost immediately. Right.

As with anything in life, I always ask, would you want less or more control over anything? You know, like, think about it. Your health, would you want less or more control? I would like to have more control over that. Right. Your family. I would like to have more control than. Less control. Your business, your investments, you know, and that's a big thing. You mentioned taxes there. I always say, like, one of the biggest threats right now, people, you know, I always look at, what are some of the dangers and threats out there? Okay. How can we turn these into opportunities? What, what skill sets, capabilities, people in my network.

What.

What do I have that can. And who do I have that can help me capitalize on these opportunities? So one of the biggest threats as a business owner is taxes.

Yeah.

I mean, for everyone.

Yeah.

I jokingly say, this is not a black swan. I'm from South Africa. This is a gray rhino. And when a gray rhino. I just went on safari with my family and took my kids for the first time and we saw a couple of rhinos. And I started to smile when they were started to walk. They didn't even run. When they even walk fast, you can feel them.

Something's going to happen.

You can hear them, you know they're coming and you can see them coming. So Texas is a great rhino. It's not a black swan. So how you generate income as A business owner is already one of the most tax efficient ways to generate income. Then the second step becomes, well, what are some of the most tax efficient ways to position capital? The money inside of these policies are never going to get taxed again. You can draw a tax free income from them for retirement if you need to. I always say to folks, if you just went to banks to finance the growth of your business or manage cash flow cycles, at the end of your career as a business owner, you walk away with nothing. You just made financial institutions a lot of money. But if you become your own banker and you implement this system, you know, 30, 40 years into your business, when you're ready to hand over the business to the kids or sell it for an exit, you might walk away with all of these policies, or a policy that could be worth $5 million, $10 million, depending how much you've put in there. Tax free.

Geez.

So that's what, even without the exit of your business, Right. So.

That'S a big thing about the positioning and then this, the third thing then is deploying capital, right? So making it, generating income, positioning it, and then where do I put it to work? And I always come back, it's funny, I always have business owners ask me, where can I make, where can I, where it's a good deal, I could put my money in right now. I said, you know, what is the best deal that I know of under the sun? There's nothing better than this, your business. So as I mentioned earlier, there's no other a place that could be to return like that. And you get a lot of favorable tax treatment because of that. If you keep deploying capital in your business because you're growing your business, you're employing more people, it actually generates more taxes for the, for the government. So they like it.

That's true. Yeah. You're playing their game.

Exactly. You get, you get the incentives. You know, the tax code is a book full of incentives of how to legally reduce your taxes. So it's in there and it's. Once you look at it, I think it was Tom Wheelwright that said it the first time that way that I'm like, that is exactly what it is.

It's your manual.

It's literally a manual. They say, well, here's the amount that you owe, but here's a book. If you just do what's in this book, you could basically knock that amount to almost nothing. And if you look about it, why would they do that? Well, if you start a business and you put the capital to work in your business. You, you're creating jobs, which creates more revenue for them, and you come up with, you solve a lot of problems in the marketplace through your products or services. If you put it in life insurance companies, think about it this way, right? The welfare state exists, but the government, I mean, how many people do you want to fall on that safety net? So insurance companies play a very big role. Life insurance is the bedrock of society. If, just think about it, right? If income earners and families die and like what happens to the family, if there was life insurance, then that family has some income replacement from the loss besides the emotional stuff, right? Just financial. There's, there's a huge financial loss and that solves that. So the government looks at that and say, we will basically reward people for positioning capital in life insurance companies because of the value that it provides to society. And it's the same thing, you know, with other investments eventually, that I talk about a lot, real estate, which you're providing quality housing, affordable housing, energy and so forth. But that's all in the tax code. So, yeah, it's a series of incentives that's there. And it's a game that if you're not playing it as a business owner, you absolutely, you absolutely have to. Because if you, if you don't press the pause button and think about that. Yeah, that could really hurt you in the, in the coming months and years.

Well, like you said, life happens like things will happen. And the government's not dumb. You know, there's a tax manual for, or just a manual on how this, how they want things to run. So play the game. And you mentioned, yeah, life insurance, you're honest, you're supporting the bigger economy and everyone else, not only yourself and your family.

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And you mentioned real estate like I believe it was from our initial conversation. Conversation. You just triggered it. But isn't, you know, insurance is kind of similar classification as real estate. Right. Like in the eyes of how it's all drawn up, obviously you're supporting the greater economy like you're mentioning as well. So there it's almost like incentivized, similar to real estate in the, in the tax benefits and all that stuff as well.

Absolutely. If you think about real estate and life insurance, it's, I mean, when I looked into this years ago, I'm like, they're exactly the same asset classes. And by the way, I started as a real estate investor in 2001 and I was starting trying to start up businesses during that time too. But that's where I started while I was playing sports. And then I discovered this, the life insurance strategy. And I added it to my own overall strategy. And one of the things that blew my mind was what you just said, that it's the exact same asset class. So I knew and understand real estate at that point and, and then I looked at this and I said, wait a second. So with real estate, if you buy it and you finance it, let's just say you mortgage it, there's a specific amount of payments that you pay and then you own the property free and clear. It's the same thing with a life insurance contract, whether it's a 5 pay, a 7 pay, a 10 pay 15, 20, or you know, pay till you know Whenever you want to pay it to, there's a specific amount of payments and then you own the contract free and clear. Every single time you pay.

Let'S just say you pay towards the mortgage of a property, you build equity in that property. The same thing with a life insurance contract. You just really exponentially grow equity where about, you know, 70 to 80% of your premiums is equity in your policy. So make payments on both, you build up equity. And then how do you access that equity? Well, with real estate you can do a home equity line of credit. You could do a cash out refi on bigger, on bigger projects. But with life insurance, you can establish a life insurance line of credit or a policy loan to tap into the equity of a life insurance policy. Real estate, if it's a investment property and let's just say you rent it out, collect the rent, pay all of the expenses. If you do it properly, there's some cash flow left at the end of it. Right. Life insurance, if you're. If you have a policy with a mutual insurance carrier, they operate their business and.

When they operated well, they're profitable like they've been since the mid-1800s. And the result is dividends. They pay a dividends which is cash flow to their, to its members. Yeah. To their policyholders, which are the shareholders. Real estate, if done right, if bought correctly, managed and operated correctly, the value increases of the property. The same thing with the life insurance. If you structure your policy correctly, the death benefit increases as the equity, the cash value increases. It was. It's fascinating. I mean I went on and on. You could sell a mortgage note, right? With real estate you could sell a life insurance contract. It's called life settlements. You can reverse mortgage a property, you can reverse mortgage certain life insurance policies. I mean I could just go on and on. It's. It's very, very similar asset classes. It's just funny that the one is. And the other one is the collateral as a human. So yeah. And both of them are treated the tax benefits. That's also the one. One thing that I did not mention. If you. Real estate is one of the best.

Assets as far as from a tax strategy and then the same thing with life insurance. So if you're buying real estate and you have these policies in combo and your business funds both and the expansion of it, it could be pretty powerful. I'll share this real life case example. We have someone in our network, a business owner, a client that he took a policy loan from his life insurance policy to then which was set up and financed his business and you know, he used it for cash flow management. But he took a policy loan and then he acquired the building from which his business was operating. So now you have the business that's generating capital. He positions the capital in the life insurance policies where he can access it to grow and scale his business. And he always has capital for cash flow management during slower months. He now use that to then put down as a down payment purchase and acquire the building from which he's operating. So now you've got three assets in that scenario, total control. Just from creatively thinking about how you're positioning your capital.

And that's what I was. Yeah, it's a positioning thing. So you know, we're talking about business and I think the way I've, I've thought about, you know, the infinite banking, this life insurance strategy is more on the personal side. But I guess like maybe explain how it looks like and like how the flow of money really happens. So we can kind of connect the dots here.

This is going to be different for everyone. Um, so this is really a case by case. So this is very customized stuff. So I will say that it's not one size fits all right here. Right. But there's difference and I'll just share one strategy. Sometimes what you can do is you can set up the policies for yourself, make it a personal policy. So the business then generates the income. You pay taxes on the distribution. So there's taxes paid, there's no tax sheltering or any shenanigans there. The policy is funded. You built that up and now you can become a lender, the bank to your business and loan your business the money which there will be a note involved, there will be interest payments. So you'll, you'll create another income stream for yourself. The business can write off obviously the payments from, from taxes. And if they buy equipment, if you buy equipment for the business with it, now you're in a win win situation because you've got great, fantastic tax benefits, buying equipment, the depreciation and then obviously you've got the tax incentives to pay back the loan to you which also has another income stream, you know, so that's one way. And then businesses itself can also own policies and own policies on the partners. That's, you know, it's all dependent on what you're looking to accomplish and the outcome, you know, if you do buy sell, how are we going to fund a buy sell? You can have the partners can own policies on one another and also another way that we structure it and Use it a lot in businesses is most people have a.

They have a plan to retain a players.

But I wanted to get to this.

All plans fail at initial contact. You know, what's, what, what's Mike Tyson's famous. Everybody's got a plan until you get punched in the face. Right? Big iron mic. But anyway, so they have a plan. But if you're listening to this and you're a business owner, you know that it's not easy. And I've heard all of the different things. They're aligned to our mission, they've bought in their passion. All that, that's talking about the eight.

Players in your business.

Exactly. What, what happens if they no longer are and if that passion fades or then the alignment of purpose and so forth. So there's, there's. And what, what happens if there's another opportunity that comes along because they're usually targeted and headhunted that they feel maybe a stronger passion for and even bigger alignment for. Right. So that's, I mean that can happen. So what you can actually do with some of these life insurance policies, and we've helped business owners with it, is you can incentivize a players through structuring policies for them where you then sweep capital into these policies for them. This is a strategy, by the way, that a lot of in the corporate world, CEOs, their packages are put together with stock options and shares of the corporation that they're going to run and then life insurance. So if, you know, if an employee for example, makes a certain amount of money, you can always incentivize them and say, look, if you stay with us for 10 years, we'll put X amount of money into this life insurance policy every single year for you. And by the time you walk away, if you, if you want to leave after 10 years, that's fine, but you're locked for 10 years. You leave before 10, we keep the life insurance policy, you stay for 10. Well now you have all this tax free money in a life insurance policy for you. So that could be one thing from, to keep a key employee. You know, it's a very, very powerful strategy and it incentivizes them to stay because they've got a really good situation working in your, in your business and crushing it. And then also have this, you know, that protects them well, allows them a pool of tax free capital that they can access.

You know, I can't think of a company that's doing, I mean obviously you said some of the C player, you know, are C level folks, but yeah, when it comes to, you know, obviously, people wrapping their mind around the concept initially, because most people don't even. Aren't even aware of it. But then I would imagine, okay, wow, this. This business owner is looking out for me. Like, this is. They're really taking care of me. Like, there's a massive incentive to stick around for whatever that term is called a decade.

They're. They're all. And they're all in at that point because you're. You've shown your loyalty to them and that you are willing to invest heavily in them and do everything that you can to keep them and keep them happy. So, yeah, I mean, it's a really, really good strategy to just keep and maintain some of the best A players that are out there.

Yeah. And that's. Yeah, that's. That's something I think we all got to be thinking about in our businesses because, yeah, things are changing fast. Like you mentioned opportunities. You have things like AI and technology moving so quickly too. Like, there's a. There is a big push for people wanting to go start their own thing. And so it's. Yeah, like, do you want to keep their focus and keep the right people around? Because I think it's getting harder and harder to keep those and even find new people if they did leave. So the opportunity cost, it's like. Yeah, it's huge.

Yeah. I've got another idea too that we. That I'll share for business owners. So a lot of business owners employ their children in their business, which you can. I mean, from a very young age. And by the way, I think it's fantastic that children get that experience. They work in the business.

What's the age or is like. Obviously, it depends.

Yeah, it all depends. I mean, I mean, you can. Even at some stage, I mean, let's just say they're starting. They're like nine or 10. They're starting to file, to file paperwork. And I mean, there's a lot of tasks that you can give them. And even younger than that, you could start them younger than that. You just have to. There's a lot of creative ideas that's out there to employ them. And you document everything. It's all above board.

I was gonna say Hollywood. Like, if you're living out there or somewhere and like modeling, you know, like this, but whatever.

Yeah, exactly. There's a lot of very creative ideas. And you can. Like I said, this is all above board. This isn't a hack or a, you know. Yeah, any. Anything exotic. But what you can do is you can Pay your children for working legitimately and legally in your business through payroll. And the business, I think we believe it's up to $14,000. It changes every year. So there's an inflation kind of like escalator in there. So it's around about 14,000 I think right now. But you can buy them that tax free and the money is tax free to them and the business can write it off. So a lot of business owners that start being their own bank start with policies on themselves. They then say, well, how do I set these up for my kids? Can I set them up for my kids? And I'm like, this is so much better than a 529 plan because you have control of the capital. It's not tied again to the market. You're not providing liquidity to someone else's else's business anyway. So yeah, you could set these policies up for them, fund it every year for them. And, and it's a fantastic strategy. That's an expense for the business and it's tax free for the children.

And it's better than a 529 plan. And I can see why. I mean like for all the benefits you just lined out earlier like that. Just imagine starting so young, like whatever the. It's compound interest again, right? It's, it's the what the wonder of the world. I forget which, which number wonder of the world, Einstein called it.

But yeah, and it's a great point. I mean I started these policies right away for my kids too. So it started to compound interest, uninterrupted compound tax free interest in those policies, which that's, I always have to add the tax free compounding because you know, the one thing about the world of finance, and this is how my, my mind works these days, but you're always. There are so many compound interest equations and what you want to do is always try to put yourself on the right side of it. So taxes, for example, people just think about it. I think about it as you're on the wrong side of a compound interest equation. Because if you're paying, let's just say in some cases, I mean, the tax rates are so, just enormous these days, but let's just say almost 50% that some people pay into taxes. Think about that 50% of your income compounding over 10, 15, 20, 30 years. Right. It makes me nauseous to just think about it. So it's a compound interest equation. So even if, even if things are. And this is what I would say to folks too, with qualified plans, even if it's growing inside of your qualified plan. You're deferring taxes.

Yes.

Which right now, back to the gray rhino analogy of taxes, is the worst financial strategy you can do is deferring taxes, meaning we're going to put money in a vehicle, get a tax break or a favorable tax treatment. Because we, we do that, but we have to pay taxes 10, 15, 20, 30 years from now on that. So you're not paying taxes on the seed, you're paying taxes on the harvest. And who knows what taxes the tax rates are going to be at that stage. Right.

Good call. Yeah, yeah, yeah. And that's where David Wolcott talked a lot about it. Like with 401ks and all these other IRAs or whatever it might be, however it's structured, that's that gray rhino, right? For the future. You don't know what that looks like.

No idea. And there's so many variables that impact that. And like I said, it comes back to control. Do you want more control or less control in all areas of your life? I always opt for more control, for sure.

I'm curious now. I'm thinking like, okay, someone who's listening outside of the US outside of America, can they leverage, like these strategies you're talking about? I don't know if it needs to be, if it's a US Policy or if there's something similar that's outside of the U.S. what would you, what would you say to that?

This is a majority of it is us. There are some. Well, Canadians can do it to us and Canadians. So, yeah, I've, I've partners up in Canada that do the same for Canadians. This is not available in other countries. We've looked into all of it. There are products.

Coming out, which is very interesting in the life insurance space in the Caribbean for international folks. But it's a little bit kind of different strategies. You know, I've seen there was a startup just now backed by Sam Altman actually, that does bitcoin life insurance, too. Denominator.

I've heard about that.

Yeah, yeah, yeah, yeah. So there's interest and it's the same kind of strategy where you position bitcoin in these policies. You get to get policy loans in bitcoin, which are new bitcoins. If you sell it at that stage, it's a cost basis of what the price is at that time. So there's minimal tax impact. But yeah, they're similar things available or that they're coming up with in the Caribbean for the rest of the world. But for the Most part, the strategy is US and Canada.

It's US Based. Yeah. And I had a feeling that was the case now. All right, so on, I guess the infinite banking side or this whole strategy, is there anything that's like, glaring that we might not have talked about? So I have a couple other questions. But yeah, if there's anything that you're like, okay, we didn't touch, or maybe it's a starting point, like the best place to get going, obviously I want to point them to your book too, so they can go even further down the rabbit hole. Let's do that. Maybe to start. Right?

Yeah.

So here's what I would say. How does this go wrong?

Yeah. Okay.

Well, it goes wrong if you're setting it up with a wrong carrier. It's structured wrong. The professional that you're working with has no idea how it is structured and, or how to use it.

And how do I know this? Because I went through that like 15 years ago.

I was the guinea pig. So my policy was like, set up with the wrong carrier, set up with the wrong financial professional. Set up wrong. I had to fix it. I went to the second person that set it up properly with the right carrier, but they had no idea even how to use it because they didn't have it themselves. So that's, that's what I would also share is work with someone that's been. That practices what they're preaching, right. Do doing the things that, what they're talking about. So that's some of the things that. That would be the downside. This is how this thing goes wrong. And the management of the policies, huge. That's, that's really where the financial professional that you're setting this up with really is really important because people have reached out to me and said, mci, I got this set up, but I think it's wrong. And then I look at it and I'm like, no, it was set up right, but they stripped it. There was no, there was no cash flow management plan. There was no strategy. There was none of that kind of stuff. So setting up the policy with the right person, with the right carrier, structured correctly is just step one, and then the journey begins. So this isn't something that you just do and you know, all right, I've done it, I'm good now. And you can move on and look at other stuff. It's part of what you're doing, so. And what you leverage and use.

Okay, cool. Well, let's point them to your book because I know you talk a lot about this and other, you know, wealth strategies that become like this predictability, you know, way to multiply. I know you have a sweet deal over Ada. If you go to getwealthyforsure.com which is also the name of the book, right?

Yes. Yeah, the book is Get Wealthy for sure, the number one financial strategy for business owners to multiply wealth predictably. So I was just so blessed. Number one bestseller on Amazon. So yeah, we're very, very blessed. If they go to getwealthyforsure.com what we're doing right now is we're giving away a paperback copy. You only pay for shipping and handling. So if they go to getwealthyforsure.com they can fill out the form there and they only pay for shipping and handling and we'll get a paperback copy to them. For other versions of it, it's on Amazon. Just go to Get Wealthy for sure. Just type in that into Amazon and you'll find the book too. But if they want a free paperback copy, go to Get Wealthy for sure Dot com.

I love it, man. And this is where. Because this is it, I guess let's end it on. This is like why is this not more known? Like it's, this is the concept. I mean, I know I've had a couple episodes now, you know, in the podcast highlighting it. It's because I'm honestly been interested and I'm deep diving myself, you know, and then, and then of course, you know, Dave on, and he pointed me to you and then that gets me on the rabbit, rabbit hole chase of learning more. Like why is this not just more of a thing that people understand And I'm happy that you're making it more so that. But yeah, I don't know. Any thoughts on that?

Yeah, I think it's like any asset class where you have information that's available to the general public and then there's like a next level of it of like more advanced kind of like strategy. Right. So if you think about real estate too, there's a lot of very generic kind of like basic stuff which most people know about. Oh, I buy real estate, it goes up in value, I sell it kind of thing. But then you get into the more advanced strategies of real estate itself and the different classes of real estate and strategies within those asset classes and so forth. Business. Kind of the same thing, right? With business. Yeah, there's very generic stuff and then there's more like, hey, here's, you know, here's how you start. Here's how you run basically a Lemonade stand. Here's how you start a business and generate income and years are. If you really want to get serious and build a business and grow and scale the business, here's what you do to do that. I think that's very similar to life insurance where I call it retail life insurance. So the, the general public just knows about retail life insurance. Right. If you talk about life insurance, it's like, hey, somebody, somebody dies, there's a death benefit and that's about it. And then you get maybe some people that have hurt people like Dave Ramsey and Susie Orman and so forth. Talk about life insurance and permanent life insurance. And again, you know, they, they have nothing but negative things to say about it.

I was going to say the same.

I agree. And by the way, people usually ask me, what do you think about Dave Ramsey? That, that feels like it's terrible. And I said I agree with Dave because the way that retail life insurance, permanent life insurance is sold to the general public is terrible. And I agree with 99% of the things that he says about how that is sold to them. Then there's how, how does the ultra affluent, the ultra high net worth, family offices, how do they buy life insurance? How do, how do banks, corporations and political elite. By the way, the sitting president of the United States, Joe Biden has six of these policies.

Does he?

Yes, it was in financial disclosure, so he had to file financial disclosure forms. He has six of these policies with a mutual life insurance carrier. So anyway, so how, how, how is, how is it that all these folks are, you know, know about it? Again, it's completely different world, different strategies.

So.

Yeah, that, that's why I think it's not more, more people, more people don't know about it. Right.

Yeah. Or like misunderstood even. Yeah, I just looked it up. Yeah, you're right. Yeah. I'm looking using Perplexity, that's my like favorite search tool.

But think about it this way.

Sure.

Insurance in general. Just think about it.

Yeah.

Who likes insurance? Just let's put life insurance aside. Just think about insurance in general.

Yeah.

You know, most people are probably listening to it and go, yeah, I pay a premium, let's just use car insurance. I pay a premium for car insurance and I pay it for years. And guess what happens when something eventually happens? Like you know, you get into an accident or the car is damaged pretty badly and you have to file an insurance claim, they raise your insurance costs.

That's right.

So you've paid something to protect what you have penalize. And by the time you need it. They not. I mean the car is worth less than when you, when you had it. When you sign up for the insurance and they're going to increase your premium. So people, people have a bad taste, you know, and they're just think about homeowners insurance. I mean I could go on and on all these stories from it. So people generally don't like insurance or the concept of insurance.

Yeah.

But if you, if you then go into, like I said, the different world that's out there and how it's used by, you know, by family offices, by ultra high net worth individuals, by corporations, banks, political elite and so forth, it's a complete game changer.

And that's what it is. And that's where I think it's a great way to end because the misunderstanding of the vehicle, you know, any in anything. Like you said, real estate, same kind of idea. Insurance is right there with them. It's like not everyone understands the breadth of what's possible or maybe is even interested. Maybe they're stuck in a, you know, they're doing some kind of insurance sales, doing something else. Like they have their own agency, they're. They're told to do. It's okay. But yeah, the family offices are where they're specialized, you know. And the cool thing is everyone has the ability to have access to that kind of level of investments. You just got to know where to look. That's why luckily you're here and you're helping them out. So get the book, I want to point there, you know, and so getwealthyforsure.com, go get your copy. It's free shipping and handling. And how do they also reach out to UMC for more? Because I know you have a lot of cool information online that got my brain thinking of all sorts of stuff.

Absolutely. If you want to learn more, we have presentations about these strategies too. You can go to your own banking system dot com, that's your own banking system dot com. And then also at Cashflow Ninja we have now we have over a thousand podcasts. We have covered over a hundred different asset classes and niches that people can invest in. So we've got a ton of information. It's. I started that in 2016, so there's.

My body started 2017, so you beat me by a year.

That's awesome. That's awesome. Congratulations.

Yeah, you as well.

Your podcast is great, man. Yeah, yeah, no, it's. I love that you're putting it out there and you are a giver. That's why I wanted to make it very clear is like, your books are great and the fact I've listened to your podcast as well. I need to obviously have a big backlog to go into. But yeah, if you're at all interested, go, go follow mc I'll link everything in the show notes description below so it's easy to find. Dude, mc, I appreciate you a ton. I know we'll be chatting more and even personally with what I'm doing, I have a whole bunch of ideas and how we'll be playing together and and I'll remind you to go check out what Dave Wolcott talked about on the podcast because we mentioned you as well. And seeing you guys collab on some stuff, so awesome. I'm stoked. So thank you very much, my friend.

Thank you so much for.

RA.