Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Cash Flow IS NOT Net Income

23 Apr 2025 · 1 min

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0:38

Short YouTube talk explaining the difference between net income and cash flow for entrepreneurs and presenting the ‘infinite banking’ approach: using corporate-owned, dividend-paying life insurance contracts on key personnel to improve cash flow, tax-defer accumulation, and contractual guarantees of cash value growth.

Chapters

A lot of entrepreneurs and business owners commingle positive net income with cash flow. There's a big difference between the two. You can have a profitable business and have very poor cash flow. If you think of the essence of the infinite banking concept, putting someone in a position of total control over how they finance the things that they need in their company by virtue of putting money in a form of premium into corporate owned dividend paying life insurance contracts on key people in the business, you're not only solving for cash flow because of the cash value accumulation that occurs on a daily basis, you're paying no tax on that build up. It's contractually guaranteed so it can't go backward.