How Infinity Banking Transforms Your Finances with Madhavi Nade Jain

Did you know that 90% of the world's millionaires invest in real estate? Well, I'm angel with the Academy Presents Real Estate Investing Rocks. And I'm here to help you if you want to go for your piece of that pie.

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Hey, guys, thank you so much for joining us for another day and just for being here the whole time and learning.

And like I've said a million times before, I am learning right along beside of you.

And today, one of the cool things.

We'Re going to hear is a way to just make your money work for you harder. And it won't really matter, really where you're putting it, whether it's your own investment or a deal or a jv, it, it doesn't matter because the system itself is where you get to make that money work for you. So I'm gonna let my speaker, Mafi Jane, talk to us about her idea and like some of what she's doing and just super exciting and I don't.

Wanna mess it up.

So I'm gonna let you take over.

And just thank you for being here today.

Oh, thank you so much, angel, for inviting me. I love that introduction. You know, it's. It's very sweet. First of all, I had attended your summit, I think your first one, and it was rocking. Absolutely. So I'm so excited and thankful and grateful to be here. So thank you so much for inviting. As you just said, my name is Madhvi Chen and I'm here to talk about what angel just mentioned. Using your money just goes just stretch a little further for you, right? Precisely. Using the same dollar at two different places. And a lot of you may have heard about this concept, which is called infinity banking concept, but I'm going to talk about the infinite banking concept in terms of the real estate investments today. So hopefully that will add some value to your listeners, to your viewers today. Again, thank you so much for inviting. So I'm going to start by sharing my screen, I think here. So we are talking about using Infinity banking for real estate investments today. My name is Madhavi Nade Jain and a little bit about me, you know, I'm the president of Think Outside the Stocks, which is a commercial real estate focused educational and investment company. I'm also a wealth strategist with Paradigm Life, helping people to create their wealth with Infinity banking system. Once I got to know about the Infinity banking system, I was so drawn to it. I was like, I have got to learn it, I have got to help people implement it, especially the real estate investors. So that's, that's my passion. I previously have been working with in IT industry about 17 years or so, mostly with top five consulting companies. And then I started my real estate journey about five years ago. My portfolio includes single family homes, multifamily. I'm also active in multifamily, also an Airbnb, interestingly. But my, if you, if you call it my true passion, it's about education. Once I got to know about these two strategies, the multifamily syndication investment as well as the infinity banking system and what they can do hand in hand for folks, right? That became really my passion to educate, to get this knowledge spread across and help people utilize it in their financial strategy. So that's a little bit about me. So jumping in, right? Why that's wealth management approach that, that I take. Think outside the stocks. Why is it important? So it's really essential when I look back at, you know, one of these financial fathers of our country, right? The Vanderbilt family, you know, Carnegie family, Andrew Carnegie and Rockefellers, right? They had millions of dollars. They had millions of dollars when they passed. And in today's terms, it was billions of dollars. So it was very interesting for me to, to look back and see that what really happened to this millions and billions of dollars, really. Right. So Vanderpelt, his known heir is, we all know him, Anderson Cooper, he inherited $1.5 million from his mom. That's coming from that, you know, that generational wealth, which was very interesting. I mean, it's still a lot of money, but you know, that billions of dollars getting passed into just few million dollars. It was very interesting. So there is something happening along the way in order, you know, this wealth is getting destroyed. Carnegie believed in giving a lot and you know, he of course did a, did a great job. There are not known heirs who are millionaires in this generation currently. But Rockefeller family, they have, you know, 150 plus heirs with 11 billion wealth and multimillion in charity that they have been donating. Not just, you know, like what Carnegie did, but they have been, you know, year after year donating multimillion charities. And they also have several tools and techniques in their strategy that help them to grow and project this wealth generation after generation. And infinity banking system is one of the tools that, that's in their toolbox, right? So that's really important. What I look at it, you know, when I help my investors with think outside the stocks, it's that wealth maximization approach. And what it is, it's really for me it's about taking a step back, taking a different perspective to your wealth. We normally, you know, are very diligent about saving and investing, saving and investing and growing of course as there's a stock market fluctuation that happens. But stepping back, kind of taking a bird side perspective to our wealth, my intention is to help you guys to grow, preserve, protect and pass this generation wealth. So that preservation generation after generation is really important. We all are working really, really hard this generation. We are kind of building that wealth that we are passing to next generation. So it's really do we want to follow that vulnerability path or do we want to follow that Rockefeller path generation after generation? So that's really my intention, we think outside the stocks is to help you grow, preserve, protect and pass your generational wealth. It's just taking that bird's side view and kind of, you know, help you with that. So first of all, what I do, right, I have few ground rules. I, you know, don't want to do anything that my investors don't want or they don't need to do or they, they can't afford to do. So for me I'm really focusing on first of all, increasing your net worth. Second is reducing your income tax liability. And third is to create that, to increase that monthly cash flow so you could move towards that financial freedom much closer than what you would think. So our philosophy is to educate with facts, complete transparency, provide information and then it's really up to you. What do you really want to do, what do you need to do, what you can afford to do in terms of investments, in terms of creating this infinity banking system, right? So this is all power to you. You can take your own decisions so we can provide, you know, that information. So we think outside the stocks. It's really a twofold strategy for maximizing the wealth is first is the better saving systems. And that's you Know, I help create with the Infinity banking system, of course, the education is core of it. So once you understand, I help you understand first and implement it better. Investment strategy with syndicated commercial real estate investments in terms of multifamily or senior assistant living, et cetera. Of course, the data driven education is my passion. That's the most I believe in. And we have every two weeks educational events going on with income side the stocks and also connecting with resources, cpa, you know, estate planning, lawyers, et cetera. But core really is the education. So jumping back now into the building your wealth maximization blueprint, right? So we take a look at your financial structure in terms of a pyramid. At the bottom of the pyramid is the solid, solid foundation that you know, I intend. I, you know, bring it into attention to my investors. And that solid foundation is about that savings, that money that, you know, that sit in your bank account currently, which helps you sleep thinking that, okay, something happens to my business, something happens to market, something happens to my job, that money for my family is there, we can pay off our expenses, we can, you know, have groceries. And that's the kind of a cushion, that's the buffer. We always have it in the bank accounts, right? So that's the saving plus the protection. So protection for that money, we keep it in the bank thinking that, okay, that's FDIC insured, so I'm never going to lose that money. So that's the protection. And not many people also think about is the protection for you because you are your biggest asset when you are creating this wealth, this income, this annual income that you're creating, creating year after year, and it's growing every year. Considering your lifespan, there is a massive amount of. You're the asset that's getting created, right? You're creating that asset. So that's the saving and protection that needs to be at the foundation, which needs to be really, really solid. So with the Infinity banking system, life insurance is that kind of a tool which we bring in, which serves into, in terms of both savings and protection. So in terms of making that growth, what's sitting in your bank account, which is kind of your lazy money, take that and kind of grow a little bit better as well as providing you that protection. So that's kind of, you know, two birds in the same stone. And as you go up in this pyramid, then there's some kind of, you know, direct investment. So maybe your real estate direct investment or maybe your indirect investment in terms of syndication, kind of a lp, not a direct investment, active investment, but like a Passive investment. And on the top it says the speculative, it could be the stock markets or anything else that's really speculation, high risk basis. One thing to note is when you're going up this pyramid, your risk is kind of going up and your control is kind of going down, right? So at the bottom it's where you have that 100% control and 100% protection for the savings and the buffer that you have. So that's, that's really the intention with think outside the stocks.

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It happens because we have sponsors like Sponsor Cloud. So check them out, see how they can help you out. And Sponsor Cloud, thank you.

And angel, please jump in, you know, anytime you have a question. I know you ask really good questions. So jump in anytime if you have any questions. Please ask away. We will have that Q and A section later on in that live event too. So I really look forward to have more questions there.

Okay, I'm taking my notes.

So perfect. So moving on, right? I mean when I talk to my clients most of the time, you know, the distribution of wealth, it depends on you what your comfort is there. But most of my clients, when I see them, it's the pyramid is upside down. They have most of their money sitting in the stock market. Not so much with real estate investors like you, you have a little bit distributions but maybe you know, it's more concentrated, more focused in that central part of the pyramid. Right. So food for thought really. What set your foundation, how do you want to treat that foundation, how do you want to move towards getting that solid foundation, that solid protection for you? So that's that's a food for thought for you on this side. Just to think about it, why that's necessary, right? Just take an example of a male or female worker who's of 42 years of age. Retirement age is 65. Current income is about 150,000 per year, about 3% growth by the time he or she retires. And say he has, he or she has 100k in the bank account which is, you know, conservatively growing at 6% annual growth till she retires. This person, the potential, the income potential, there's an income potential in terms of what the income is going to, this person is going to see and there's a wealth potential, right? So in terms of the income potential, this person would see about $5 million income potential. And in terms of wealth potential, that's about $10 million. So that's the immense amount of money. And that's when I'm looking at and taking you back at that bird's eye view, the perspective that's essential. When we see this amount of money flowing through our system. It's about keeping that growth in mind, preservation in mind, passing to the next generation in mind. So the growth, preserve, protect and pass. That's really why I want you to look at what I want you to think about this, you know, per set perspective to your financial strategy. So another visual which I really love in terms of your, you know, lifetime wealth distribution. If you look at it from a big tank point of point of view, that 5 million or 10 million sitting in that tank, not everything gets passed through the annual income, right? So you have that annual income. The first regulator you come across is your tax filter that some leakage of your money goes through. Then you have the standard of living and you have some money that just flows through as expense. From time to time we all try to push it up this chute which is into two tanks. One is the safety tank and one is the investment tank. So the saving tanks, that's really that sleep well money, if I call it that sits with the bank accounts, the FDIC insured bank account. Right. And the left hand side is the risk money which typically, you know, in terms of investments, anything above that, that's the bottom layer tier that we saw in the pyramid in terms of real estate investment, stock investment, anything from time to time that you will see that you take some risk and some evaporation happen there. The right hand side most important part is this tight lid. We need to have that security that okay, this money is never going away, it's secured there and from left hand side there is, you know, some risk, some evaporation happen time to time. Of course we also pay in taxes in that debt bucket. So what is really our problem today here? Right, the first problem is the inefficient savings. Today we have our savings which is our emergency buffer, our education money for the kids that's sitting in, you know, some kind of security that we don't want to get lost. And also between the investments, especially for real estate investors like you, between the investments you are parking this money in the bank account. So really what is happening to that savings account? First of all, where are you saving it? Either you are saving it in bank or bonds. The current interest rate is really, really low. So even if you think that this is FDIC insured, I'm not losing any money. Just think about it. When you are looking at say less than 1% interest every year, which is the current interest rates and you are sitting on inflation about 3% every year. So, so it's minimum negative 2% plus. So that's even if it's FDIC insured, you're losing the value of that money. You know, you have to keep that in mind. Where is that tax liability? It is tax active income tax bracket. So that's another disadvantage of it. Is it really safe? You know, if you are saving this money, you know, say you're putting it at stock market, a lot of people would say that, hey, whenever I need, I'll take it out from there. So it's tied to that volatility. It's, it's risky. Sometimes you, you contribute that money into say for example education money into 529 plan, it's cap, there is a cap on how much you can, you know, put it in it in there every year. In terms of access restriction, there is a, either liquidity restriction in terms of, if it is in bonds, you cannot access it immediately. In terms of educational money, you have like a purpose restriction that you can only access it for education. Otherwise there's going to be penalty. If you are putting this money into retirement account, it's restricted by, you know, the age, the, you can't access it before you're 59 and a half. And in terms of asset protection, it is such an expensive asset protection. If you want to protect this and you know, keep it safe, if somebody tomorrow sues you, they have the direct access to this savings in the bank account and they can literally go after this money right away. Right. And there is, there are no additional benefits. That's Provided for this kind of savings, savings that you're protecting in the bank account. So that's our number one problem today, that even if we think that our savings are protected, it's not protected. And that has become over the period a stagnant pool of money. It's not growing, it's just, you know, it's losing its present value. And it's just sitting there, it's being lazy. So that is the money that we take, the savings money, we take that put it to work in infinity banking system. And then we can, as angel was saying that we can show you how we can use it at two different places, right? So why think like banks really, you know, why we keep on saying like bank, like bank, like bank. So let's look at what's really the business of bank is, right? So the bank is essentially say, you know, they're, they're just sitting and they, you come in and you say that okay, here is my $10,000 I want to safe keep with you. So whenever I have emergency I want to access it. So the bank says okay, we'll see if safekeep for you. Maybe they're giving 1% interest, which is about $100 interest that year. And somebody else comes in and says that I want 10,000 loan and say on an average based on their credit card to mortgage, all the type of business book of business that they have, say 8% is their average interest that they provide on these loans. So this person who you know, walks in, take 100k loans, gives the you know, $800 in into interest to the bank. Now bank had no money, right? You gave the money, the bank gave the same money to somebody else. Now bank invested just that hundred dollars. So that hundred dollars gave them 100800 returns which is you will say that 700 profit, but it is 700% profit for 100 investor. It's 800 back, right? So that's exactly what we are trying to do. In your own case. So typically how things happen with us that we are the savers and you know, we save really well, we spend and invest things really, really well. So this is what typically happens that we you know, save, save, save in bank account. Say we purchase a car or either have our first home that we have like a down payment for that first home. We drop our savings in the bank and then again we start saving back for education or anything else. You know, we'll either the real estate or educate our expenses will drop that down and it's kind of, you know, goes up and down from there. So that's really what's happening to your savings into the bank account. So suppose if you never had to take that money out, if that money kept on going up and it had like a consistent rate of return, for example, if you were saving 1,000 per month, uninterrupted interest of 6%, that 1,000 per month has a capacity over 30 years to really be millions, $1 billion if you had that uninterrupted compounding, right? So compound interest is really truly the basis of the infinity banking system. With the compound interest, as Einstein called it, it's really the eighth wonder of the world. The one who understands it, earns it, the one who doesn't, pays for it. So really, which side of the compound interest you want to be, you know, when you are thinking of being a bank, what side of compound interest you are? That's really the key here. So instead of you going up and down in the savings with the infinity banking, the strategy is that you put that money inside that infinity banking system, which is tied with the life insurance. Whenever you have any expenses like car or down payment, instead of you taking the money out of the system and stopping its compounded growth, you just take a leverage from it and you pay it back. You again take a leverage from it and you pay it back. Because of that, what happens is the inside money, it never comes out and it compounds, you know, year after year and eventually it has that exponential growth. So your savings account, instead of, you know, looking at that tiny savings account at a time, it actually shows that immense amount of growth over a period of years. So that's really the summary of the infinite banking strategy that, you know, you grow your money and borrow from others whenever you want to, you know, invest or expense or do anything. So that's the uninterrupted compounded growth, right? So that's really the core of it is life insurance. But don't mistake it to your regular life insurance because it has to be, I cannot insist enough that it has to be structured completely differently, very specifically, so that you can achieve immense amount of growth for your money. It's like creating a blueprint of say a three bedroom house and trying to fit a five bedroom house. Trying to fit a five bedroom in that house. That's not possible. So when you think about it, hey, I have life insurance, maybe I can use it for infinity banking. Well, it has to be looked at, we have to review it and we have to take a look at it. If it is really efficient, if not it needs to be a completely new strategy created, complete new structure created from the, from the start. So that's this, you know, multiple steps that you create that structure. You max fund the cash portion of your policy and you kind of go from there. And I know, you know, a lot of people actually when you hear the term life insurance, one part of their brain completely shuts off, right? And I found this really funny clip on the Internet. This is, you know, the way people avoid life insurance agent. Right. It's really funny. But essentially you get the point, right? Life insurance has such a bad name and because of that, the underlying facts about life insurance, especially in terms of how you can grow your. The savings account, which is just sitting there being lazy, being stagnant, how you can grow there and it has multiple other benefits, it's kind of got hidden. So it's really my passion to bring that, you know, the fact that education in front of people so that they can understand it and they can implement and I can help you guys implement it.

Sam, it.