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

Money Not in Motion is Wasted Money!

15 Aug 2024 · 0 min

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Short conversational excerpt from the YouTube video "Money Not in Motion is Wasted Money!" (Richard Canfield). Speakers discuss why life insurance companies keep very little cash on their balance sheets, arguing that idle cash is wasted capital and that firms prefer to keep only necessary accessible cash while deploying the rest. The exchange contrasts investor perceptions (seeing cash as a positive) with the speakers' view that excess cash signals inefficient capital use.

There's a reason that life insurance companies keep very little cash on their balance sheet, because they understand that money that isn't in motion isn't worth anything. It's super important to have some cash readily accessible. And the insurance companies mandate whatever the board mandates. As he listen, this is what we need to have readily accessible. That's one thing. But they maintain very little cash on the balance sheet. And some people think that when a potential investor looks at a balance sheet and they see a lot of cash, they're saying to themselves, good job.
And all we see is a waste of money.
It's the exact opposite. It's like, what are we doing with all this capital?
I am a huge proponent of what I call relegating the banks to only serve the function that they're good at serving, which is primarily a payment facilitator.