The Future of Silver: A Hidden Gem in Emerging Technologies

Episode Summary

In this compelling episode ofย The Control Your Cash Podcast, hosts Olivia Kirk and Tim Yurek are joined by Layton McWilliams, an experienced professional in the precious metals market with nearly a decade of expertise. Layton shares insights into the unique dynamics of gold and silver investments, focusing on the affordability and utility of silver as a hedge against inflation and a critical resource in emerging technologies. The conversation explores the increasing demand for both metals, silver’s dual role in financial security and industrial applications, and the global supply challenges shaping its future value. They also discuss how silverโ€™s undervaluation presents an opportunity for investors and its growing importance in industries like renewable energy, electronics, and even artificial intelligence infrastructure. This episode is packed with valuable information for anyone considering diversifying their portfolio with precious metals.

Key Takeaways

  • Silverโ€™s Accessibility and Potential:ย Silverโ€™s affordability makes it a practical entry point for investors. It offers the same hedging benefits as gold and has higher upside potential due to its current undervaluation.
    • Gold and silver have been reliable stores of value and forms of money for thousands of years.
    • Unlike fiat currency, which loses value due to inflation and overprinting, gold and silver maintain their purchasing power.
  • Dual Demand for Silver:ย Unlike gold, silver has both financial and industrial demand, with applications in solar panels, electric vehicles, and emerging technologies driving its increasing relevance.
  • Global Silver Supply Challenges:ย Silver mining has been unable to meet industrial demand for two consecutive years, signaling potential future supply shortages and increased value.
  • Emerging Technology Impact:ย Innovations like artificial diamonds and AI infrastructure highlight a broader trend of leveraging materials like silver for advanced manufacturing and technology, enhancing its strategic importance.
    • With less than 5% of Americans currently owning physical gold and silver, demand for these assets is likely to rise as more people recognize their value during economic transitions.

About the Guest

Layton McWilliams is a seasoned expert in the gold and silver industry, with over a decade of experience in precious metals. As the manager of First National Bullion’s Scottsdale office, Layton has built a reputation for his integrity, client-focused approach, and deep passion for educating investors. His journey spans multiple roles in the industry, providing him with a unique perspective on the importance of gold and silver as foundational elements for wealth preservation. Layton’s expertise lies in simplifying complex financial concepts, helping individuals understand how precious metals can safeguard their financial future in times of economic uncertainty.

Transcript

Olivia: Hello and welcome to the Control Your Cash Podcast. I’m your host, Olivia Kirk.
Tim: And I’m your co-host, Tim Yurek. We have our returning guest, Layton McWilliams. Layton, welcome to the show again!
Layton: Thanks for having me back. Iโ€™m excited to be here and really excited to get into silver this time.

Olivia: Yeah, absolutely. Last time we had a great conversation regarding gold. I know today weโ€™re going to touch a little bit on gold, but mainly focus on silver. Our audience really enjoyed the gold discussion last time, so we appreciate you taking the time to come back today.
Layton: My pleasure, my pleasure.

Tim: Letโ€™s start off with a question: What do you think is the main difference between deciding to purchase gold versus silver?
Layton: Thatโ€™s a great question. Iโ€™d say the biggest difference is affordability. More Americans can afford to invest in silver compared to gold. Right now, silver is hovering around $30 an ounce, whereas gold is closer to $2,700 or $2,800. For the average American, silver is more accessible and aligns better with budgets.

Olivia: Certainly, youโ€™re able to have more reach with silver if it fits within your budget. What about silverโ€™s role as an inflation hedge? Does it work similarly to gold, or are there downsides to its affordability?
Layton: Great question. Both silver and gold serve the same utility as hedges against inflation and alternatives to the current monetary system. However, silverโ€™s current undervaluation in US dollars makes it particularly attractive. It has more upside potential Tim Yutek: Have you seen an increase in demand for gold and silver over the past few years?
Layton: Absolutely. Over the past five to ten years, both metals have gained relevance in everyday financial conversations. While gold and silver arenโ€™t fully mainstream yet, more Americans are starting to explore their potential.

Whatโ€™s especially exciting about silver is its industrial demand. Silver is highly conductive and reflective, which makes it essential for emerging technologies like solar panels, electric vehicles, and electronics.

Olivia Kirk: What about AI? Are there any links between silver and the artificial intelligence industry?
Layton: While there isnโ€™t a direct link, AI relies heavily on technological infrastructure, which involves electronics powered by silver. Interestingly, weโ€™ve been in a global deficit where the amount of silver mined hasnโ€™t met the demand for manufacturing. This trend should catch peopleโ€™s attentionโ€”itโ€™s all about supply and demand.

Layton: Silverโ€™s dual role is what makes it unique. Itโ€™s critical for industrial use but also has financial demand. This combination is why I think silver will continue to gain traction.

Tim: You mentioned earlier that silver is undervalued. Can you explain this further?
Layton: Sure. One of the key metrics I use is the gold-to-silver ratio. This measures how many ounces of silver are needed to equal the value of one ounce of gold. Historically, this ratio has been much lowerโ€”around 40:1 or even 15:1. Today, itโ€™s at 86:1, which indicates silverโ€™s significant undervaluation compared to gold.

Tim Yurek: You mentioned the gold-to-silver ratio is 86:1. What does that mean for investors?
Layton: Itโ€™s one of the most telling metrics for silverโ€™s undervaluation. At todayโ€™s ratio, it takes 86 ounces of silver to equal the value of one ounce of gold. Historically, this ratio has been much lowerโ€”closer to 40:1 on average, or even as low as 15:1 during some periods.

For investors, this creates an opportunity. If you buy silver now and the ratio normalizes over time, you could use your silver to acquire more gold at a much better rate. Itโ€™s a way to leverage silverโ€™s undervaluation strategically.

Olivia: So, youโ€™re saying silver can be a stepping stone to owning more gold?
Layton: Exactly. Gold is the ultimate steady form of wealth, but silverโ€™s current pricing gives it an edge. Itโ€™s a great time to consider diversifying into both metals, but silverโ€™s potential for growth makes it a particularly exciting option right now.

Tim: What about industrial demand? How does that factor into silverโ€™s future?
Layton: Silver has unique propertiesโ€”itโ€™s the most conductive and reflective of all pure elements. That makes it essential for high-tech applications like solar panels, electric vehicles, and electronics.

Right now, global silver production isnโ€™t keeping up with manufacturing demand. For the past two years, weโ€™ve been in a silver deficit, meaning weโ€™ve used more silver than weโ€™ve mined. This supply-and-demand imbalance could drive prices up further, especially as emerging technologies continue to grow.

Olivia: Thatโ€™s fascinating. With this growing demand, silver sounds like an incredible investment opportunity. Whatโ€™s your advice for someone looking to buy silver?
Layton: The first step is to understand why youโ€™re buying it. Silver can be a financial hedge, a long-term investment, or even a tool to trade for gold down the line. Knowing your goals will help determine the right strategy.

I always recommend starting small if youโ€™re new to precious metals. For example, you can purchase junk silverโ€”U.S. coins made before 1965 that contain 90% silver. These are highly recognizable and easy to use for transactions in case of an emergency.

Tim: What exactly is junk silver?
Layton: Junk silver refers to dimes, quarters, and half-dollars minted before 1965. Back then, these coins were made from 90% silver. Today, a single silver dime is worth about $2.20. Junk silver is affordable, versatile, and great for bartering if needed. Itโ€™s also a good starting point for anyone new to investing in silver.

Olivia: How do you recommend storing silver for long-term safety?
Layton: Thatโ€™s a big consideration. Most clients keep it at home in a secure safe, but Iโ€™ve heard some creative storage ideasโ€”one client even used silver bars as garden dividers!

For more serious investors, we offer a private, fully insured vaulting service outside the banking system. This option is ideal for clients who want professional storage without relying on banks or safety deposit boxes, which I generally advise against.

Tim: Why avoid safety deposit boxes?
Layton: Storing your silver in a safety deposit box puts it back under the banking systemโ€™s control, which defeats the purpose of owning physical metals. Plus, the contents of safety deposit boxes arenโ€™t insured by the FDIC, so youโ€™re not protected if something happens.

Tim: Do you work with clients nationwide? How does that process work?
Layton: Absolutely. We work with clients across the country. For those who canโ€™t visit our office, we offer fully insured shipping to your door. We also provide education and strategy consultations to ensure clients understand the options available and make informed decisions.

Tim: You mentioned earlier that silver is more accessible for small investors. What about those with larger amounts of wealthโ€”how do they approach gold versus silver?
Layton: Great question. For clients investing $500,000 or more, priorities tend to shift. Theyโ€™re less concerned with maximizing returns and more focused on preserving wealth.

Gold is more portable and easier to store, which appeals to high-net-worth individuals. For example, a single kilo gold bar weighs about 2.2 pounds and is worth over $80,000. Compare that to silverโ€”it takes over seven pounds of silver to equal about $3,000 in value. So, for wealth preservation, gold is often more convenient.

However, I still encourage diversification. Even our high-net-worth clients are allocating a portion to silver because of its growth potential.

Olivia: Letโ€™s talk more about leveraging silver strategically. How does that work?
Layton: The idea is to use silverโ€™s undervaluation to your advantage. Right now, it takes 86 ounces of silver to equal one ounce of gold. As that ratio normalizesโ€”say, to 40:1 or even 30:1โ€”you can trade your silver for more gold.

For example, if you buy silver today and the ratio drops to 40:1, youโ€™ll need far fewer ounces of silver to get the same ounce of gold. Itโ€™s a simple but effective strategy for building long-term wealth.

Tim: Thatโ€™s a really smart approach. Is this something you see your clients actively doing?
Layton: Definitely. Many of our clients are already following this strategy. They view silver as a stepping stone to accumulate more gold over time. Itโ€™s not about chasing quick profitsโ€”itโ€™s about positioning yourself for the long term.

Olivia: What do you say to people who might be hesitant about investing in silver or gold?
Layton: The hardest step is often the first oneโ€”just reaching out and starting the conversation. Once we understand your goals, we can help build a strategy that makes sense for you.

We pride ourselves on educating clients and providing transparent, no-pressure guidance. Whether youโ€™re buying a single coin or investing millions, weโ€™ll ensure you feel confident about your decisions.

Tim: You mentioned earlier that silver plays a major role in industrial applications. Do you see that demand growing in the future?
Layton: Absolutely. Silverโ€™s unique propertiesโ€”its conductivity and reflectivityโ€”make it irreplaceable in many emerging technologies. For example, solar panels, electric vehicles, and electronics rely heavily on silver.

Whatโ€™s especially interesting is that global silver production has been in a deficit for the past two years. This means weโ€™re consuming more silver for manufacturing than weโ€™re able to mine. As demand grows, especially with the push for renewable energy and new technologies, I expect this trend to continue.

Olivia: Does this industrial demand outpace its financial demand?
Layton: Itโ€™s a balance. Silver is unique because it serves both purposesโ€”industrial and financial. While gold is primarily driven by financial demand, silverโ€™s dual role gives it additional upside. Thatโ€™s why I view silver as a โ€œdouble-edged sword.โ€ Itโ€™s critical for industries but also offers a hedge against inflation and a store of wealth.

Tim: Do you think silver could play a role in future monetary systems?
Layton: I do. Historically, gold and silver have always been reliable forms of moneyโ€”theyโ€™ve never gone to zero. While Iโ€™m not saying weโ€™ll return to a gold or silver standard tomorrow, there are movements globally to reintroduce these metals as part of monetary systems.

If that happens, it would create even more demand for silver. Think of it this way: even if industrial demand for silver continues to rise, monetary demand has the potential to completely outpace it.

Olivia: What about the role of innovation in the financial system? Do you see that impacting precious metals?
Layton: Definitely. I think weโ€™re entering an age of innovation and a push to regain financial independence. More people are questioning the current monetary system and exploring alternatives like gold and silver.

At the same time, new technologies are making it easier to buy, store, and trade physical metals. For example, we offer private vaulting services where clients can buy and sell metals with a simple phone call. This kind of convenience is helping more people transition into owning physical assets.

Tim: It sounds like gold and silver are becoming increasingly important as tools for financial freedom.
Layton: Exactly. Theyโ€™re the kryptonite to the current financial system. Gold and silver allow people to exit the manipulated banking system and take control of their wealth. Thatโ€™s why education is such a big part of what we do.

Olivia: Layton, for someone whoโ€™s interested in getting started with gold or silver, whatโ€™s your best advice?
Layton: The first step is education. Donโ€™t rush into buying anything without understanding why youโ€™re doing it. We focus on educating clients about the role of gold and silver, their historical importance, and how they can fit into your financial goals.

Start small, especially if youโ€™re new. For example, you can begin with junk silverโ€”pre-1965 coins. These are affordable, recognizable, and practical for transactions. From there, you can diversify into larger investments like silver bars or gold coins.

Tim Yurek: Whatโ€™s the biggest mistake people make when investing in precious metals?
Layton: Trying to time the market or chasing quick profits. Precious metals arenโ€™t about speculationโ€”theyโ€™re about stability and long-term wealth preservation. If you go into it with the mindset of making a quick return, youโ€™re setting yourself up for disappointment.

Olivia: What does it look like to work with you and your company?
Layton: Itโ€™s a very personalized process. Whether you visit our office in Scottsdale or connect with us remotely, we start with a conversation to understand your goals. From there, we provide tailored advice and transparent pricing.

We also emphasize strategy. For example, if youโ€™re buying silver, weโ€™ll explain how it fits into your portfolio, when to consider trading it for gold, and how to store it securely.

Tim: How do people usually store their metals?
Layton: Most clients keep their metals at home in safes, but we also offer private vaulting services. This is ideal for larger investments or for clients who travel frequently. The vault is fully insured and operates outside the banking system, so itโ€™s a secure option without relying on banks.

Olivia: What sets your company apart from others?
Layton: Education and transparency. A lot of gold and silver dealers try to keep clients in the dark about the process. We take the opposite approachโ€”we want you to understand exactly what youโ€™re buying, why itโ€™s a smart choice, and how it fits into your overall strategy.

Tim: That makes a big difference. How can people reach you if theyโ€™re interested?
Layton: The easiest way is to email us at [email protected]. From there, weโ€™ll set up a time to talk and guide you through the process.

Olivia: Layton, thank you so much for joining us again. This was incredibly informative!
Layton: My pleasure. Thanks for having me back.

Tim: We really appreciate your insightsโ€”gold and silver are fascinating topics, and youโ€™ve made them so accessible.
Layton: Thank you. Iโ€™m happy to help.

Turning Struggles Into Entrepreneurial Success with Travis Robbins

Episode Summary

In this insightful episode of the Control Your Cash Podcast, host Tim Urick speaks with Travis Robbins about his entrepreneurial journey, the challenges he faced, and the lessons he learned while building Robbins Rehabilitation West. Travis shares how he transitioned from a fresh-out-of-college physical therapist to a successful business owner with multiple locations and over two decades of experience. The episode covers themes like perseverance, financial independence, marketing, and the value of coaching.

Key Takeaways

1. Regaining Control of Your Cash:

  • Financial independence begins by taking control of your money rather than relying on financial institutions.
  • Implement processes, not products, to manage finances effectively and avoid being at the mercy of external entities.

2. Building a Personal Pool of Capital:

  • Establishing a personal financial reserve allows you to handle emergencies or seize opportunities without relying on banks.
  • A consistent, disciplined approach to saving through strategies like Infinite Banking builds long-term stability and flexibility.

3. Optimizing Cash Flow:

  • Small improvements in how you manage and track your finances can significantly enhance overall cash flow.
  • Avoid the debt cycle by focusing on strategies that maximize every dollarโ€™s efficiency.

4. Financial Flexibility with Tax-Free Savings:

  • Strategies like specially designed whole-life insurance policies allow for tax-free savings and accessible funds when needed.
  • This approach ensures liquidity while securing long-term financial growth and retirement security.

5. Changing Your Financial Mindset:

  • Shift from traditional financial advice to strategies that minimize risks, taxes, and inflation.
  • Education and mindset shifts are critical to achieving financial freedom.

6. Leveraging Expert Guidance:

  • Partnering with knowledgeable advisors who prioritize your goals ensures tailored solutions for long-term financial success.
  • Like coaching in business, financial coaching simplifies complex concepts and helps you implement practical, effective strategies.

About the Guest

Travis Robbins is the founder and owner of Robbins Rehabilitation West, a thriving physical therapy practice with over 23 years of experience. Starting with limited resources and knowledge of business operations, Travis turned his passion for helping people into a successful entrepreneurial journey. Along the way, he overcame significant challenges, including financial hurdles and marketing obstacles, while building a multi-location practice.

In addition to running his business, Travis now coaches other private practice owners, sharing lessons learned to help them avoid common pitfalls and accelerate their growth. His story is a testament to resilience, innovation, and the power of coaching in transforming struggles into success.

Transcript

Welcome to the control your cash podcast I’m your host Tim urick and it is our pleasure to have Travis Robbins from Robins Rehabilitation West Travis welcome to the show we are doing lovely no so uh Travis tell us about a little bit about your journey tell us how you got interested in physical therapy uh and and tell us about some of the struggles and the the the you know the the successes that you’ve had yeah I got more struggles than successes probably which is um is good um I I do uh coaching and Consulting now for pts and I get to teach them all the stuff I did wrong so that they make sure they don’t do that but I have a very typical Physical Therapy Story how we got if you talk to 10 physical therapists eight of them are going to say uh I had some kind of injury in high school or college and I went to a PT and I thought that was pretty cool and I could do that you know for the rest of my life.

I had some injuries in high school and I went to PT and it was actually uh the physical therapist that I saw uh went to my high school and I said where’d you go to college and he said I went to itha college so I went and checked out that College and I said this is good if I can get in here I’ll go here and kind of ended up following in his footsteps and now it’s cool now that we do a ton of that at work in that like our aid program so the kids that work our front desk all of almost all of them have 40 degrees are trying to get into PT school and they if you talk to 10 of them eight of them would say the same story that I said and just trying to get experience in the field so um I just kind of thought it would it was great in terms of the medical side of stuff um so it’s you get to spend time with your patients.

I don’t know if you’ve been to a doctor’s appointment recently but um You probably don’t have a relationship with your doctor whereas if you talk to somebody who went through Physical Therapy they probably have some kind of relationship with their physical therapist like if you if you need someone that knows a guy like hey do you know a guy for like HVAC or Plumbing or a guy that’ll get a raccoon out of your house like ask a physical therapist because we have met everybody from every line of work there is and we actually have a relationship with them because we spend on average somewhere around 16 hours of time with them during their course of care so um so I did that and uh got out of school and I got a job in Boston.

My uh fiancรฉe at the timeโ€”my now wifeโ€”and I always wanted to live in like a bigger city, so we tried that for a little bit. Our first job I ever got was in Boston, and we found out it’s very difficult to live on a physical therapistโ€™s salary in Boston. So, we ended up moving to the Poconos, uh, which I did not know was a place. I only moved there because my twin brother, who’s also a physical therapist, was in New Jersey at the time, and he said, โ€œHey, you gotta check out these cheap houses in the Poconos.โ€

And this was in 2002, I guess, yeah, and I was like, โ€œAll right, I’ll check it out.โ€ And then I went up there, and I drove through the Poconos. I stopped at a builder, and I bought a house, like, on the way home to Boston. I said, โ€œI don’tโ€”I gotta find this guy. He should run sales for me. I don’t know how the heck he did it, but he sold me a house.โ€ And I was like, โ€œYep, let’s just do this.โ€ So, I often make decisions quickly. It doesn’t always work out for me, but this one definitely worked out.

So, I was in the Poconos, and then I was trying to find a job. I was going to work for the place my brother worked in New Jerseyโ€”it was a small private practice similar to what I have nowโ€”and then that didn’t work out. So, I open up the newspaperโ€”this will date me, right? So, I told this story the other day, and it was hilarious. Someone said, โ€œWait a second, you found a job in the newspaper? Like, I didn’t even know that existed.โ€ So, I opened up the newspaper and looked for a job, and I found a job in the newspaper in Allentown, Pennsylvania, which I had never been to.

And I went and interviewed there. It was for NovaCare, a large corporate PT place. And um, I worked there for a little while. I looked for a smaller private practice in our area, but I just couldn’t find one. So, at the time, I was 24, and I was like, โ€œWell, I don’t have a huge mortgage. I don’t have any kids. I can eat bologna sandwiches. Why don’t I just try this private practice thing?โ€ Because I always kind of wanted my own practice.

And the one piece of advice I could give people is like, if you’re going to open up your own business, do it early. Like, do it when you’re young because once you get older and you have, like, these financial burdens of mortgages and kids and stuff like that, it’s just kind of harder to get away from that. So, I opened up the practiceโ€”that was almost 23 years ago nowโ€”and I’m still doing it.


Tim: Wow, that’s amazing. So, uh, tell us about some of the struggles that you had in, you know, starting your own business. What were some of the challenges?
Travis: Yeah, this will give you an idea of how much I knew about running a business. I still remember my first patient that I ever saw. I rented, uh, so I worked at that NovaCare location. I found, uh, there was a doctor that had some hours there, and he said, โ€œHey, there’s this chiropractor in town that’s looking to have physical therapy in his practice. You should talk to him.โ€

I said, โ€œOh, great.โ€ So, I went and talked to him. He says, โ€œYeah, you canโ€”I’ll give you this like 200 square feet in the back of my chiropractic office, and you can just do physical therapy there. And we have staff here, like admin that’s here already, so they can, like, answer the phones for you and stuff, and you can try that.โ€ I said, โ€œYeah, sure.โ€ And that’s kind of how I started. I rented 200 square feet in the back of a chiropractor’s office, which is also a very common story that you’ll hear from physical therapists who start their own practice.

So, I remember my first patient. I went to the waiting room and said, โ€œHi, I’m Travis. I’m going to be your physical therapist today.โ€ And she said, โ€œGreat. Do you take my insurance?โ€ And Iโ€”I had no idea what that even meant. Like, I went to my first day of work and didn’t realize that I had to have contracts with the insurance company in order to see their subscribers. So, I was like, I looked at my front desk who had done, um, billing and collections for chiropractic offices, which is very similar for physical therapy. And I was like, โ€œDo we take her insurance?โ€ And she’s like, โ€œI don’t know. You never gave me any of your provider numbers.โ€ And I said, โ€œWhat’s a provider number?โ€


So, I didnโ€™t make a dime for the first six months because Iโ€”for some of the insurances, I was able to backdate it and say, โ€œHey, I would love to be a subscriberโ€”or I would love to be a providerโ€”for Blue Cross Blue Shield.โ€ And itโ€™s way different 23 years ago than it is now. Now that would not fly for sure. But I talked to some people on the phone, and they said, โ€œYep, you canโ€”weโ€™ll backdate it, and maybe weโ€™ll pay you.โ€ Some of them paid; some of them didnโ€™t.

But that process was six months where I didnโ€™t get paid a dime from the insurance companies. So, I would work at the hospital on the weekends, I would pick up shifts at other places, just to, like, make some kind of money before that money came in. But to go back to the question you asked 20 minutes ago, you know, โ€œWhat were the struggles?โ€ I mean, any PT that opens up a private practiceโ€”itโ€™s a little bit different now because information is a little bit more availableโ€”but we donโ€™t know what weโ€™re doing.

Like, we like to treat patients; weโ€™re good working with people. But the, like, billing and collections, the negotiation of contracts with insurance companiesโ€”we donโ€™t know how to do that. And thatโ€™s usually kind of where we get taken advantage of. We just kind of take what we can get. But that initial one of just not knowing how to run a business, but not even knowing how physical therapy works with insurance companies, was a huge struggle.


Tim: Yeah, and I would imagine, like, sales and marketing were probably something else that you had no experience with, right? With a degree in physical therapy, I mean, they donโ€™t teach you how to market yourself.
Travis: No. I mean, the only thing Iโ€”I mean, I had worked in physical therapy clinics before. So, I would see patients come in, and I would say, โ€œOh, how did you end up here?โ€ โ€œWell, my doctor sent me.โ€ โ€œOkay, well, there must be some kind of relationship with the doctor in this PT office.โ€

So, I knew to go out to doctors. I actually just did this a couple of weeks ago. The first doctor I ever called on, 23 years ago, is a podiatrist. I donโ€™t remember how I got hisโ€”I think I used to get some patients from him at my old NovaCare office; thatโ€™s how it was. His name is Brad, and heโ€™s still a podiatrist, and still in the same location he was 23 years ago. And we were just talkingโ€”he asked me how the kids were doing, and his kids are growing up, same age as mineโ€”and we were just kind of blown away with, like, how quickly 23 years went.

So, initially, marketing back then was, you went out and talked to physicians. At that time, physicians were kind of privately owned. There were lots of them that were privately owned. And now, in 23 years, there are almost none that are privately owned. The hospital has kind of eaten all that business up. Thatโ€™s not unique to my location eitherโ€”thatโ€™s pretty much across the board.

Itโ€™s rare you find physical therapy clinics that rely heavily on doctor referrals anymore because the doctors that we used to work with, they love to say, โ€œHey, I would love to send you, Travis, but Iโ€™m at the hospital now.โ€ Like, they will get in trouble if you send out of the network. I remember a doctor said, โ€œYou know, just write a script, and they can go wherever they want.โ€ He said, โ€œIโ€™m telling you, it doesnโ€™t matter. If I put why the patient wanted to go to Robbins Rehab, and it says โ€˜patient preference,โ€™ Iโ€™m going to get a call from administration after lunch. You can sit here and wait for meโ€”it will happen every single time. So, I canโ€™t even put that on there anymore.


So, thatโ€™s a whole other issue. But the marketing has changedโ€”has changed more to, um, like direct response marketing. So, we go to the general public first. We have to educate them on, โ€œYou donโ€™t need a prescription for physical therapy,โ€ which is kind of a big hurdle because they just kind of assume, โ€œOh, I really could use some physical therapy, but I gotta go to my doctor. It takes six weeks to get into my doctor. You know what? I hope it just goes away, and maybe I donโ€™t need to do that.โ€ But they donโ€™t even know you can come. Like, if you called my office today and said, โ€œI need PT,โ€ we would get you in todayโ€”we donโ€™t need a prescription from the docto

So, the marketing has changed in terms of how we used to do it. Now, before, we would do that in, like, a newspaper. Like, we would run a lot of newspaper ads. And still, in some markets, newspaper ads do work because my demographicโ€”typically, you know, 55 and olderโ€”still reads the newspaper, if they exist in your community. But a lot of it now has gone to digital marketing.

So, I donโ€™t knowโ€”I mean, I know basic metrics and numbers, likeโ€”but I donโ€™t know how to create a Facebook ad or an Instagram ad. We lean on experts to do that in our industry. Yep. So, we have six main buckets that we pull from in our practice. The good thing now is that I have been around for 23 years. So, we want at least 65% of our new patients that are coming in to have either come to us before or were referred by someone who came to us before.

When youโ€™re starting out brand newโ€”and thatโ€™s what we were talking about before we got on the callโ€”starting out in a brand-new area, we have seven locations. You know, we tend to add on in areas that are close to where we already are because we still have a foothold in that area. We have some peopleโ€”the first thing weโ€™ll do is a zip code search. Like, โ€œAll right, how many of our past patients come from these zip codes?โ€ โ€œOkay, we can reach out to them. If they need physical therapy, theyโ€™ll come back because they already know, like, and trust us. Theyโ€™ve come to us for PT, and weโ€™ve fixed their problem before.โ€


Now, you have to be good at physical therapy. You canโ€™t have, you know, crappy physical therapyโ€”people arenโ€™t going to come back. But in people that have been around as long as we have, we want a majority of our patients coming from those two buckets. That doesnโ€™t mean it automatically comesโ€”you still have to do some marketing to them through email newsletters. Weโ€™re doing a new thing now where we have a magazine that weโ€™re sending out to our patients that have come to us for two or more plans of care.

So, if you come to us once, thereโ€™s a good chance that youโ€™re going to come back. It might not be immediate, but if you come to us two or three timesโ€”or more than thatโ€”youโ€™re probably a pretty big fan of us. So, we market to that group of people differently. So, past patient friends and family physician referralsโ€”we do get physician referrals. Some of them will send out of the network, even though the network doesnโ€™t like it. There are some private physicians that are left that are kind of holding on. So, we do have some of that.

Workers’ compensationโ€”we see a small percentage of that. We would love to see more of that population, but thatโ€™s a very political bucket to pull from. Youโ€™ve got toโ€”itโ€™s all who you know, relationships, and contracts like that. And then, general public. So, general public is anybody that has no idea who we are, and they saw a cold ad for us and said, โ€œYeah, I would like to try physical therapy with you guys to try to see if you can help me with my problems.


Tim: Wow, thatโ€™s amazing. I mean, it seems like, obviously, over the past 23 years, everything evolves, and it changes a lot faster than it used to, right? So, itโ€™s the kind of thing where you have to evolve and change almost just to keep up. And if youโ€™re really good at it, you could be on the forefront. And, you know, I know there are some things that youโ€™ve been involved with, like the NLP team. If you could talk a little bit about how that was developedโ€”the NLP teamโ€”and what insights youโ€™ve garnered or learned from that?
Travis: Yeah. So, that was in 2017. I had met some other private practice owners. Private practice owners are really, um, generally not that great at networking. Like, the first private practice owner that I met other than myself was at least 10 years after I opened up. You would think we would try to kind of get together and try to fix problems together. But there is kind of a competitive nature to that, too. Itโ€™s like, well, you know, I have a place thatโ€™s two miles from you, and, you know, I have another place thatโ€™s eight miles from another person. Like, if we get together and help each other out, I donโ€™t knowโ€”that might be a competitive disadvantage.

But I was completely wrong on that. The more stuff you share and the more you help people, the more comes back to you. So, I started a mastermind in 2017 with other private practice owners from all over the U.S. We had met online at that timeโ€”you know, Facebook and Facebook groups and that kind of stuff were really big. So, you could meet other private practice owners from all over the country. I wish I could go back to 2003 and have shown what would happen in 2017. Like, Facebook wasnโ€™t a thing, social media wasnโ€™t a thing. Thatโ€™s how I kind of created this company.

I met these guys, and my wife would always call them, โ€œOh, those are your internet friends, right?โ€ So, these practice ownersโ€”from all over, from Tennessee, Texas, Illinois, Indianaโ€”we got together, and we did, like, a Zoom call like this. That was around the time when Zoom was really getting popular too, to where you could do calls like this and help each other out. So, we did virtual calls. And then, eventually, we did a live in-person event in Chattanooga. We just rented an Airbnb, right around the time Airbnb was getting popular, and we just got together. We threw our numbers up on the board, and it was like the metrics that we looked at to try to find out, okay, what are things that, you know, someone is doing right and things that people need help on.


It was crazy how it was eight of us. We threw our numbers up, and we would look at statistics and ask some questions and say, โ€œWow, youโ€™re doing this really well, and I donโ€™t even look at that,โ€ or โ€œI donโ€™t do that really well, and hereโ€™s where youโ€™re struggling.โ€ But guess what? Arand does that really well, and he speaks on how you can help that out. It accelerated our learning curve so fast. So, when we met in 2017, within about 18 months, everybody at least doubled the size of their practice, which was crazy because all of us had been doing it for a very long time.

I mean, we had one guy that was, uhโ€”heโ€™s our elder statesman. Heโ€™s been doingโ€”heโ€™s been in private practice for over 30 years. So, he has seen a lot of different stuff. So, the point of that is, if you want to accelerate your learning, you want to try to find somebody that is already where you want to get to and just kind of cheat off their paper. And guess what? When you get somewhere, you just want to try to give that back to somebody.

So, after we doubled the size of our practices pretty quickly, we were like, โ€œYou know what? This seems to be helpful. Like, it was helpful for usโ€”can we help other private practice owners?โ€ So, we started to, like, okay, we put together a Facebook group, and then we did some coaching and consultingโ€”everything from Zoom calls, like one-on-one coaching calls. We do live events, so we rent out houses in Orlando, and private practice owners come down for, like, two days. We have workshops and get to work across the table with them to try to find out whatโ€™s going on in their practice.


We do in-person coaching. Like, Iโ€™ve flown to other practices and done a drop-in coaching. I watch their practice for two days, and thatโ€™s really one of the most intimate levels of it, where I can actually see whatโ€™s going on in your floor. And that has been something that has been super helpful. So, thatโ€™s what weโ€™ve been doing since 2017, just trying to help other private practice owners. Weโ€™ll never say that we know everything, but between the eight of us, thereโ€™s probably nothing you have a problem with or have run into that at least one of us hasnโ€™t already gone through. And then, we just tell you what to do.

So, thatโ€™s not just for physical therapyโ€”thatโ€™s any industry. If you can find somebody that has already gone through what youโ€™re going through, the learning curve is accelerated.
Tim: Thatโ€™s amazing. So, Travis, Iโ€™ve always told my kids, and I share this a lot with my clients, โ€œThereโ€™s no such thing as a wasted experience.โ€ Could you sort of share some insights that youโ€™ve received when you were working with somebody you were coaching? Maybe you were teaching them something, but you also picked up something from them?
Travis: Oh, yeah. My coaching clientsโ€”I always tell them itโ€™s a shame youโ€™re paying me because, like, a lot of times, I learn more from you than you learn from me. No matter who you are or what youโ€™re doingโ€”whatever industry youโ€™re inโ€”weโ€™ll stick in physical therapy. If you went into any physical therapy clinic, thereโ€™s something that theyโ€™re doing that they usually donโ€™t even notice that is, like, in the top 3% of any private practice that you would go into, and they just kind of donโ€™t realize that.


In terms of specifics, it can just be specific metrics that we track. It can be, like, initial evaluation arrival rates. So, last year, we looked at initial evaluation arrival rates. Not to get too into the weeds for people that arenโ€™t physical therapists, but every new patient that comes in, that sets up a new plan of careโ€”they hurt their ankle, back, whateverโ€”and they set up an appointment, we looked at what the arrival rate of that patient was. In previous years, it would always hover around 90%.

What we assumed was, โ€œOkay, if 10 patients scheduled, nine of them came. That one patientโ€”well, they canceled, but they probably just rescheduled to the following week, or they were on vacation, or their kid got sick, so theyโ€™re definitely rescheduling.โ€ Well, we went back and looked at it, and this was last year, and we found out that that wasnโ€™t happening. They canceled, but then we didnโ€™t have any systems in place to kind of follow up with them and try to make sure, โ€œOkay, yeah, you were sick, but we want to make sure you get scheduled back in.โ€

We looked at itโ€”weโ€™re never going to get 100%, right? Some people cancel an appointmentโ€”maybe they were hospitalized, maybe they found a place that was closer to their house, or their cousin said, โ€œOh, you should go to my physical therapist. Donโ€™t go thereโ€”cancel that appointment.โ€ We looked at that. We donโ€™t have a super large practice, but if we could turn that number from 90% to 94%โ€”so not a huge jump, just like some other systemsโ€”we ran the numbers. How much money do you think that cost us in 2023? How much money do you think we lost by not getting that number from 90% to 94%?
Tim: I know Iโ€™m putting you on the spot here, Tim.
Tim: Yeah, Iโ€™m going to say it might have cost you 10%.
Travis: Yeah, itโ€™s a quarter of a million dollars


Travis: So, a quarter of a million dollars that could have been in our bank accountโ€”not to get to 100%, thatโ€™s not realistic, thatโ€™s just not going to happenโ€”but to move from 90% to 94%. And I got that from a client. I was looking at their numbers, like, โ€œWhat is this?โ€ And they said, โ€œOh, yeah, we keep track of our initial evaluation arrival rate. Weโ€™re really big on that.โ€ And I thought, โ€œIs that really important?โ€

You know, when it comes to metrics, there are people that love to dig into it. And, like, Arlan and Kevin have so many numbers on their wall, it looks like the New York Stock Exchange. Thatโ€™s great for some people. Some people just need a more condensed version of it. For me, when I coach, Iโ€™m like, โ€œWe want to have the most important ones.โ€ So, if I can get your most important metrics down to, like, 10 that you look atโ€”which would be difficultโ€”thatโ€™s better than having 100.

Sometimes, with me and my brain, I just get overwhelmed by too many numbers. So, that was a statistic I just wasnโ€™t looking at because I didnโ€™t seeโ€”I didnโ€™t think there was any value in it until I went back and actually ran the numbers at our annual offsite meeting. We take our leadership team and go to, typically, the Poconos for, like, three days, and weโ€™re like, โ€œOkay, what are we going to work on and try to improve this year in our practice?โ€ We looked at that number, and we improved it to 94% this year, which was exciting.
Tim: Wow. Good for you. Thatโ€™s a milestone, for sure.


Tim: You know, when you think about, โ€œThe riches are in the niches,โ€ they say, right? So, just these little details that, if you follow and track and work on improving, could add significant value on an overall basis to your business.
Travis: Yeah. Physical therapyโ€”typically, physical therapists are very subjective when it comes to the business side of stuff, which is kind of funny. Because whenever you go into physical therapy, there are two main sections of an initial evaluationโ€”a daily visit. Whenever you go to a physical therapist, thereโ€™s going to be a subjective version of what went on.

So, youโ€™re going to ask the patient, โ€œHow are you feeling today?โ€ Thatโ€™s hard to quantify, you know? Itโ€™s like, โ€œIโ€™m feeling better than before.โ€ โ€œIโ€™m feeling at, like, 96.5% of what I should be.โ€ Like, itโ€™s very hard to do. Thereโ€™s a subjective version, and then thereโ€™s an objective version. The objective version is range of motion, muscle strength testing, special tests. So, itโ€™s things that we have to put together to kind of present a case to the insurance company: โ€œThis person needs physical therapy.โ€

Objectively, something I can measure that is standardizedโ€”thatโ€™s an issue thatโ€™s happening. That, in theory, is creating their subjective complaints. If we can fix the objective things that are going on, their subjective complaintsโ€”which is the reason theyโ€™re coming inโ€”will improve. No one comes into physical therapy and says, โ€œI donโ€™t have any pain or anything. I was just looking to improve my range of motion.โ€ Like, nobody does that.


Travis: So, it has to be this system where we kind of have to defend to the insurance company, โ€œHey, you should pay for this because we feel like they need it.โ€ Itโ€™s the same thing on the business sideโ€”thereโ€™s a very subjective side of business. I remember evaluating physical therapists. Iโ€™ll give you a quick story. Our Allentown locationโ€”itโ€™s always been our first location, so itโ€™s always been our biggest and most productive, most profitable. There are a lot of different reasons for that.

But there was a time when all of our numbers dippedโ€”this was way before 2017, when I met these guys and they taught me everything I know. We had a new PTA that started, and I said, โ€œHuh, maybe it has something to do with that PTAโ€”new clinician.โ€ So, I talked to the patients that were seeing the clinician, and I said, โ€œHey, howโ€™s thisโ€”Iโ€™m not going to say his nameโ€”but howโ€™s this new clinician doing?โ€ I didnโ€™t hear anything like, โ€œOh my God, heโ€™s terrible, itโ€™s awful.โ€ They were just kind of like, โ€œYeah, heโ€™s a nice guy, and heโ€™s pretty good.โ€ I didnโ€™t hear anything subjectively from my patients that suggested there was a problem.

I didnโ€™t have any objective measures to try to find out, โ€œIs this a good PTA or not?โ€ Thatโ€™s where the systems we have in place now come in. The number one metric we look at is successful graduation. Successful graduation is: if you come to me for an initial evaluation for a plan of careโ€”you hurt your backโ€”we set up your goals at the beginning of the treatment. We say, โ€œOkay, these are your goals.โ€ Typical goals would be: โ€œIโ€™ve got to return to work and be on my feet for 10-hour shifts, five days a week.โ€ Thatโ€™s a very objective thingโ€”โ€œIโ€™ve got to be able to do that without any pain.โ€


Travis: โ€œGreat, thatโ€™s one goal. What do you like to do outside of work?โ€ โ€œWell, I used to hike, and I donโ€™t really do that anymore because of my back pain.โ€ โ€œOkay, how far did you hike?โ€ โ€œI donโ€™t know, like two or three miles.โ€ โ€œHow many times a week?โ€ โ€œThree times a week.โ€ โ€œSo, if you could hike three miles three times a week, youโ€™d be happy?โ€ โ€œOh my God, that would be amazing.โ€ Thatโ€™s what you want to hear from a patient when you set up the goals.

They start a plan of care. They go through however many visits it takes to hit their goals. They hit their goals, and thereโ€™s agreement on both sides of the table: โ€œPhysical therapy really helped me out.โ€ What do you think the national average is in outpatient physical therapy for graduation rate? They call it discharge rateโ€”I donโ€™t like the word โ€œdischarge.โ€ Thatโ€™s another podcast, probably. But essentially, itโ€™s the success percentage of physical therapy.

Tim: Iโ€™m going to guess low, like probably 60%.
Travis: Yeah, so 11%.
Tim: Eleven?
Travis: One-one. Eleven percent. Thatโ€™s my industryโ€™s success rate. We average above 85%. We shoot for 80%. We have one clinic thatโ€™s at 92% this yearโ€”thatโ€™s going to be our record.


Tim: Well, Travis, itโ€™s beenโ€”itโ€™s amazing how fast time has gone by. Itโ€™s almost an hour. I really appreciate your time. Any parting shots for our audience?
Travis: Yeah, I would just talk to people about the power of coaching. If I could do anything over again, I would get coaching sooner. I would ask for help. A lot of people have a hard time asking for help. The faster you realize that, the better youโ€™ll sleep at night.
Tim: Awesome. Thank you so much, Travis Robbins, Robbins Rehabilitation West.

Why Gold and Silver Are Your Best Hedge Against Inflation and Economic Uncertainty with Layton McWilliams

Episode Summary

In this episode of Control Your Cash Podcast, we explore an essential question: Is gold and silver the missing link in your portfolio? Discover how these precious metals serve as financial cornerstones for wealth preservation in the face of inflation and market volatility. Our guest, Layton McWilliams of First National Bullion, delves into the critical role precious metals, specifically gold and silver, can play as a safeguard against economic uncertainty. Layton shares his inspiring journey, from working in the gold and silver industry to managing his own office, offering invaluable insights into why these assets are pivotal in a well-rounded portfolio. Amid the current economic instability and the devaluation of the dollar, Layton explains why gold and silver should be viewed as foundational elements for protecting and preserving wealth. He also breaks down the difference between numismatic coins and bullion, emphasizing why bullion often proves to be a better choice for average investors aiming to secure their financial future. Whether youโ€™re new to precious metals or already have them in your portfolio, this conversation is packed with practical and valuable insights for anyone seeking to strengthen their financial strategy with tangible assets. Tune in for an enlightening discussion on why gold and silver may be your ultimate hedge against inflation!

Key Takeaways

  • Gold and Silver as Financial Cornerstones:
    • Gold and silver have been reliable stores of value and forms of money for thousands of years.
    • Unlike fiat currency, which loses value due to inflation and overprinting, gold and silver maintain their purchasing power.
  • Importance Amid Economic Volatility:
    • With rising inflation and economic instability, gold and silver act as safeguards against wealth erosion.
    • The current monetary system is unsustainable, with 80% of US dollars in circulation created in the last four years, signaling a potential currency crisis.
  • Fiat Currency and Inflation:
    • The US transitioned to a fiat currency in 1971, detaching the dollar from the gold standard, which has led to significant devaluation of the dollar over time.
    • Inflation acts as a hidden tax, eroding the value of savings, especially for retirees and those on fixed incomes.
  • Gold vs. Silver:
    • While gold is a stable asset, silver offers greater upside potential due to its industrial applications and affordability.
    • Both metals serve as essential hedges but appeal to different investment strategies.
  • Physical Gold and Silver vs. Paper Investments:
    • Physical metals provide direct ownership and zero counterparty risk, making them a more secure choice.
    • Paper investments like ETFs or mining stocks introduce additional risks tied to third-party management or market volatility.
  • Practical Applications in Crisis:
    • Historically, during periods of hyperinflation or currency collapse, economies reset to gold and silver as trusted forms of money.
    • In a post-crisis recovery, gold and silver holders may have unique opportunities to trade metals for valuable assets like real estate or vehicles.
  • Building a Well-Rounded Portfolio:
    • Gold and silver should not replace other investments but complement them as a foundation for wealth preservation.
    • These assets are particularly valuable in diversifying a portfolio and mitigating risks from economic downturns.
  • Education is Key:
    • A significant gap exists in public understanding of gold and silver as financial tools.
    • Layton McWilliams emphasizes the importance of educating investors about the benefits and proper use of precious metals.
  • Proactive Preparation:
    • Beyond financial investments, individuals should consider broader preparedness, such as storable food, water, and secure shelter, for potential economic disruptions.
    • Physical gold and silver play a critical role in ensuring financial resilience during times of uncertainty.
  • Future Relevance of Precious Metals:
    • With less than 5% of Americans currently owning physical gold and silver, demand for these assets is likely to rise as more people recognize their value during economic transitions.

About the Guest

Layton McWilliams is a seasoned expert in the gold and silver industry, with over a decade of experience in precious metals. As the manager of First National Bullion’s Scottsdale office, Layton has built a reputation for his integrity, client-focused approach, and deep passion for educating investors. His journey spans multiple roles in the industry, providing him with a unique perspective on the importance of gold and silver as foundational elements for wealth preservation. Layton’s expertise lies in simplifying complex financial concepts, helping individuals understand how precious metals can safeguard their financial future in times of economic uncertainty.

Transcript

Hello and welcome to the Control Your Cash Podcast. I’m your host, Olivia Kirk.
And I’m co-host, Tim Yurek.

Today we’re here with Layton McWilliams. We met Layton at an event in Arizona. He deals with gold, and we very much appreciate you coming on to share your knowledge with us and a little bit of your story. So, welcome, Layton.
Layton: Thanks for having me. Itโ€™s great meeting you guys a couple weekends ago, and I’ve been looking forward to this ever since I talked to Tim about it. So excited to be here.

Olivia: So, Layton, I just want to point one thing out here. It says you were born and raised in Wyomingโ€”thatโ€™s the state of Wyoming, correct?
Layton: Yep, Mountain West, state of Wyoming.

Tim: Great. So, I grew up in a town called Wyoming, Pennsylvania, and your state, the state of Wyoming, was named after the Battle of Wyoming, which occurred in Wyoming, Pennsylvania during Revolutionary War times. Most people who live in the state of Wyoming don’t know that little tidbit, so consider yourself educated.
Layton: That is a no-go. I was just going to say thatโ€™s a great fact to start out the episode with. I’m sure I’ve heard that at one point, but that is refreshing my knowledge. So that is actually very interesting.

Tim: Absolutely, so consider yourself educated on your state.
Layton: Yeah, absolutely. No, I’m thankful to grow up in Wyoming, and the more that I’m away from Wyoming, the more thankful I am thatโ€™s where I grew up. You know, more a small-town atmosphere, things like that, so I appreciate it more and more as I grow older.

Olivia: So how did you end up in Arizona? Like that’s quite the transitionโ€”from the middle of nowhere to the big city of Arizona.
Layton: Yeah, that’s a good question. I moved down to Phoenix 12 years ago now when I graduated high school. But I was the baby of the family, so I had three older siblings, but they’re all 10-plus years older than me. So, long story short, when I was in kindergarten is when my oldest brother graduated high school. He moved down here to Phoenix, Arizona. So, throughout my entire childhood, you know, I’d visit him, come stay with him. So, by the time I graduated high school, I was already familiar and comfortable with the city, and it’s like anything else. You know, you grow up somewhere, and then you graduate high school, and you kind of want to go experience life somewhere else. So, I made that transition 12 years ago.

Arizona is a great place. You know, I’m very connected to the outdoors, and Wyoming has world-class hunting, fishing, exploration. But Arizona, I think, is very underrated, too. We’ve got a lot going on here. But yeah, I kind of followed my brother down here, and I have moved back to Wyoming a few times in the last 12 years to help my family out with business and other things like that. So, I’ve gone back and forth, but the majority of my last decade has been here in Arizona. So, quite the transition, but I think Arizona is probably one of the most underrated states, in my opinion.

Tim: Yeah, absolutely. You know, Olivia and I have been out there many times for business, and it is a hidden treasure. And one thing that we’ve noticed is it seems like every time we go out there, there’s been more development since the last time we were there. Itโ€™s growing so quickly.
Layton: It really is, and that’s exciting for us that have been in Arizona, especially those of us that are operating, you know, businesses here. Itโ€™s a lot more opportunity. And I’ve only been here for 12 years, but I have experienced the boom in population. My oldest brother moved down here in 1998, so he’s really seen a couple, you know, booms come through here and the population continue to grow.

But it’s been really interesting. The way that I articulate it is I think people have been voting with their feet lately. Arizona is still a very freedom-minded state. It has a lot of great laws, you know, the ability for us to protect ourselves, as well as a lot of other things. So, with everything going on around the United Statesโ€”the different individual states, you know, passing legislation to affect the livelihood of peopleโ€”I think Arizona has become somewhat of a bastion of freedom, you know, in the southwest of the US.

So, it has been really interesting to see the new incoming population from these other states. A lot of them are great, you know, people that we welcome here, and some other people we clash with. So, it’s been really interesting, you know, but I kind of chalk it up to people voting with their feet.

Tim: Yeah, that certainly makes sense. So, Layton, you have a background in the gold and silver industry. How did you get started with that? How did you come across and get to this point?
Layton: Yeah, so I’ve got, you know, just like anyone else, I’ve got a unique journey. Itโ€™s about 10 years ago, when I was like 20 years old, when I went on the kind of path of having an inspiration to look into whatโ€™s going on with the world and actually start to piece my puzzle together of what I thought my worldview was going to be going forward as an adult.

Growing up in Wyoming, my parents were entrepreneurs. So, you know, I witnessed them open multiple businesses, get them off the ground, sell themโ€”that’s kind of what they did. And so, Iโ€™d always had a business and finance personal interest. So, when I started to look into alternative information and really try to get my idea of what’s going on with the world, I was always attracted to the finance side, the economic side.

And so, I did a lot of research. Long story short, I came to the conclusion that physical gold and silver are actually the fundamental bases of all economic activity throughout history, and itโ€™s very overlooked. Thereโ€™s a major disconnection between Americans and the idea of gold and silver.

About 10 years ago is when I started my path on connecting with gold and silver, and then about seven years ago is when I first got my opportunity in the precious metals industry. Since then, for the last seven years, Iโ€™ve worked for three different companies dealing with physical gold and silverโ€”three different brokerages here in the Phoenix area. So, Iโ€™ve had the opportunity to kind of bounce around the industry and get a really good inside look at how different businesses operate, how they approach the business, how they advise their clients, and things like that.

The first place I worked for was very, very respectable, very straightforward. I learned a lot from the gentleman that runs that business. They focused a little bit more on the numismatic or the collector side of coins. So, I learned a great deal about the collector numismatic industry, but I was always more drawn towards bullion, which is what we focus on here at my current company, and it’s a little bit of a more straightforward, better way to invest for the average American versus getting into collector coins as a hobbyist.

I learned a great amount at the first place I worked. Then I went to the second place here in the Phoenix area, and I only stayed there for a couple of weeks because they really did not embody the advisory and the tactics that I stood for.

Eventually, I landed with First National Bullionโ€”thatโ€™s the company I’m with nowโ€”coming up on five years ago. And I stuck with First National Bullion because we really do it the right way. We position our clients in the right products and take the time to educate.

I’ve been with the current company, First National Bullion, for about five years now, and for three years now, Iโ€™ve been managing the office we have here in Scottsdale, Arizona. Our company has five total brick-and-mortar locations: three in the San Diego area, one here in Scottsdale, and one up in Show Low, Arizona.

So, really where my journey started was educating myself and basically placing a bet on what industry I thought would provide me a good career and become more relevant over time. I cannot tell you guys how thankful I am that I stuck with this industry because about eight years ago, talking to people about gold and silver was a little bit more difficult than it is today.

Things werenโ€™t as bad with our economy; inflation hadnโ€™t caught up to us yet. So, it was kind of like pulling teeth trying to educate people about the idea of gold and silver, how we can use it, and how it can protect us. Nowadays, this past year or so, weโ€™ve just been on fire. There are so many people reaching out that I talked to years ago, saying, โ€œHey, we finally want to learn and get our questions answered.โ€

So, for me, it wasnโ€™t always the easiest journey, especially going between the different places within the industry. But everything worked out in the end, and I really appreciate First National Bullion. It’s owned by one gentleman named John Cavuto, and he lives in San Diego, managing the offices out there.

I really appreciate him because he allows me to run the office we have here, manage our clients, and advise in the way that I know is right. He trusts myself and my associate, Gilbert, to run the business based on integrity here. So, I couldnโ€™t be more thankful for where Iโ€™m at. Itโ€™s been a long rideโ€”itโ€™s only been seven years, but honestly, it feels like a lifetime to me.

Olivia: Yeah, it sounds like itโ€™s been a lifetime leading up to this point for you. It sounds like itโ€™s really in line with your values and your beliefs.

Tim: So, Layton, tell us: why is gold and silver so important? And if you were to talk to someone considering getting into gold and silver, what would you tell them?

Layton: Yeah, absolutely. And I think thatโ€™s one of the main reasons weโ€™ve really gained a lot of traction here and a great reputation within the industry. Not to take too many steps back, but I do have to let you guys and your listeners know who may not know much about the gold and silver industryโ€”it has a bad reputation for the right reasons.

Iโ€™ve experienced this firsthand. The majority of people in our positionโ€”precious metals brokersโ€”arenโ€™t really worried about the best interests of the client. Theyโ€™re trying to sell you whatever product they can make the highest margin on versus whatโ€™s actually intelligent for you to be positioned in.

So, one of our main priorities is education firstโ€”itโ€™s really how we set ourselves apart. As far as gold and silver are concerned, I really try to keep it as simple as possible, especially in the initial conversations.

The best way I can explain it is physical gold and silver are money. They have been used as money for thousands of years. Theyโ€™re the only financial instruments weโ€™ve ever had that havenโ€™t lost value throughout that time.

So, really, gold and silver shouldnโ€™t be viewed as a โ€œquote-unquote investment.โ€ I tell people, โ€œYou donโ€™t get into gold and silver to get rich. You get into it just to protect the wealth youโ€™ve already earned.โ€ Itโ€™s not a speculative investment; it complements your other portfolio assets, whether thatโ€™s the stock market, real estate, or cryptocurrency. Itโ€™s your foundationโ€”a safe haven of wealth to give yourself a nice base so you can risk money in other assets or investments.

Gold and silver are money, always have been money, and I think always will be money. The reason theyโ€™re important to us right now is because the current monetary system we have is not healthy. Everyone knows inflation is hitting us.

Tim: Thatโ€™s such a great point because the government manipulates the cost of living and inflation rates. They tell us inflation is under control, but when we go to the grocery store, the gas pump, or buy a house, we know inflation isnโ€™t under control. Prices are higher than ever.

Layton: Exactly. You canโ€™t flood the economy with printed dollars and not expect prices to rise. More dollars chase the same amount of goods and services, so prices go up. Consequently, having a percentage of your wealth in precious metals like gold or silver helps protect your wealth from the ravages of inflation.

Tim: And it seems like inflation isnโ€™t a new problem.

Layton: Absolutely. To be honest, one of the biggest breakthroughs for people learning about gold and silver is understanding how disconnected we are from sound money. Through most of our lives, weโ€™ve never had to worry about the US dollar. Itโ€™s always been something we relied on as a stable currency, but that wasnโ€™t always the case historically. The disconnect began in 1971 when Nixon took us off the gold standard. Before that, every dollar we printed was backed by a certain amount of physical gold, redeemable on demand. This provided stability and served as a common denominator for trade between countries. When Nixon disconnected us from gold, we transitioned to a fiat currency, completely unbacked.

So, weโ€™ve only been experimenting with fiat money for about 50 yearsโ€”a small blip in human history. Before that, gold and silver were either used as currency themselves or backed paper money. Itโ€™s shocking how quickly things changed, and even up until 1964, all US dimes, quarters, and half-dollars were 90% silver. Real silver was circulating as money.

Today, I could buy a sack of silver dimes, and I paid $2.20 per dime. That shows how much value the metal holds compared to the devaluation of paper money. This transition, from using real money to complete fiat, has been devastating for purchasing power.

Tim: Thatโ€™s fascinating. So, what was the price of gold in 1971, when Nixon took us off the gold standard?

Layton: It was around $35 per ounce. Today, itโ€™s nearly $2,700. Thatโ€™s a 7,600% increase in price, not because gold became more valuable but because the dollarโ€™s purchasing power dropped. More of our overprinted money is needed to buy the same ounce of gold, just like it takes more money to buy a pound of hamburger at the grocery store.

This demonstrates goldโ€™s strength as a true, stable form of money, unaffected by manipulation or inflation.

Tim: Thatโ€™s incredible. And you mentioned earlier that weโ€™ve increased the money supply by five times since 2000. Could you recap the key figures driving this economic situation?

Layton: Absolutely. Let me walk through a few economic indicators to keep it simple. First, the money supply. In 2000, we had about $4 trillion in circulation. By 2024, weโ€™re at $21 trillionโ€”a fivefold increase.

Second, US national debt. It was $5 trillion in 2000 and now stands at $35 trillionโ€”a sevenfold increase.

Third, currency and credit derivativesโ€”essentially, the financial contracts and debts underlying the systemโ€”have skyrocketed.

Lastly, our GDP (Gross Domestic Product). In 2000, our GDP was $10 trillion, and today, itโ€™s about $30 trillion. While GDP has tripled, it hasnโ€™t kept up with the sevenfold increase in debt or the fivefold increase in the money supply.

These factors demonstrate the fundamental imbalance in our economy.

Tim: That imbalance seems hard to overcome. How does this affect the average American?

Layton: The overprinting of money is essentially a hidden tax. Itโ€™s a form of wealth confiscation because it devalues the savings people have worked their entire lives to accumulate. For retirees on fixed incomes, who saved $1 million or $2 million thinking it would be enough, the purchasing power of that money is significantly lower now.

Inflation removes our ability to save and plan for the future. This is where gold and silver come inโ€”they provide consistency and stability in a volatile monetary system.

Tim: You said earlier that 80% of all US dollars in circulation were printed in the last four years. Thatโ€™s staggering.

Layton: Yes, before COVID, our money supply was $6 trillion. Today, itโ€™s $21 trillion, meaning 80% of dollars in circulation were created in the last four to five years. Thatโ€™s not sensationalismโ€”itโ€™s a currency crisis.

Weโ€™re dealing with monetary inflation, which happens when money creation outpaces economic output (GDP). Even if Trumpโ€”or any leaderโ€”boosts GDP, weโ€™re too far behind to catch up with the scale of money creation.

Tim: So, what happens next? How do we prepare for the inevitable crash?

Layton: History tells us that every fiat currency goes through a life cycle, and the US dollar is closer to the end of its cycle than the beginning. When fiat currencies fail, hyperinflation follows. Eventually, economies reset to physical gold and silver.

During hyperinflation, businesses stop accepting worthless currency and revert to gold and silver as reliable money. In the Weimar Republic of Germany, post-World War I, people traded a single gold coin for an entire house. Thatโ€™s the value gold can hold in a crisis.

Tim: So, should people buy gold and silver to prepare for this?

Layton: Yes, but as part of a broader strategy. Gold and silver provide financial preparedness, but people should also focus on essentials like storable food, water, and secure shelter. Donโ€™t put all your money into gold and silver; itโ€™s just one piece of the puzzle.

Gold and silver are reliable stores of value, but their true utility will shine after a crisis when economies rebuild. Those who own physical metals will have the means to trade for other assets or kickstart the labor market.

Olivia: Whatโ€™s the difference between owning physical gold and silver versus investing in ETFs or mining stocks?

Layton: The main difference is counterparty risk. Physical gold and silver have zero counterparty riskโ€”theyโ€™re unencumbered wealth in your hands. ETFs or mining stocks involve risks like management failures or market volatility.

Olivia: Do you talk about this on your own podcast?

Layton: Yes! My associate Gilbert and I started the Precious Metals Podcast to share insights. People can visit preciousmetalspodcast.com to learn more or contact us for guidance.

Layton: Less than 5% of Americans own physical gold and silver, but as our monetary crisis deepens, more will seek it out. Itโ€™s one of the few asset classes that will retain value during the transition.

Tim: Thank you, Layton. We look forward to having you back to discuss silver in-depth.

Layton: Thank you! Happy to join anytime.

Estate Planning Insights: Navigating Life Insurance Trusts, Estate Taxes, and Long-Term Financial Security with Bill Rainaldi

Episode Summary

In this episode of the Control Your Cash Podcast, hosts Olivia Kirk and Tim Yurek welcome back financial expert Bill Rainaldi for an in-depth discussion on the evolving landscape of estate planning and life insurance. Bill shares powerful lessons from his fatherโ€™s career in estate planning, emphasizing resilience and creativity in financial strategy. The conversation explores essential estate planning tools, such as life insurance trusts and second-to-die policies, which are designed to preserve wealth across generations. They discuss the impact of potential estate tax changes, strategies for building liquidity to cover estate taxes, and common pitfalls in life insurance policies, particularly universal life and second-to-die insurance. Bill, Olivia and Tim, emphasize the importance of ongoing monitoring and strategic flexibility in estate planning to ensure policies meet long-term financial goals, even as personal circumstances and economic conditions evolve.

Key Takeaways

  • Estate Tax Strategies for High-Net-Worth Individuals
    Potential changes in estate tax laws could impact high-net-worth estates. Planning ahead, including utilizing trusts, is essential to reduce the potential estate tax burden.
  • The Role of Life Insurance Trusts
    Life insurance trusts are valuable tools for protecting assets from creditors and preserving wealth for future generations. By holding assets in trust, individuals can control wealth distribution while safeguarding it against unforeseen events like divorce or financial mismanagement.
  • Advantages and Challenges of Second-to-Die Policies
    Second-to-die (or survivorship) policies can help couples cover estate taxes when the second spouse passes away, but these policies require careful planning to ensure affordability over the long term, especially as circumstances change.
  • Understanding Universal Life Policies
    Universal life insurance policies may seem attractive with lower initial premiums and cash value growth, but they can become problematic if not closely monitored. Interest rate fluctuations can reduce the value, and longevity risks can make these policies costly in the long run.
  • Importance of Ongoing Monitoring and Professional Guidance
    Life insurance policies, particularly those used in estate planning, need regular check-ins to ensure they still align with financial goals. Engaging financial professionals to help monitor and adjust these policies is crucial for long-term security.
  • Planning for Longevity and Liquidity Needs
    With people living longer, ensuring life insurance policies provide liquidity for estate taxes is essential. Planning for extended longevity and liquidity needs can prevent financial stress in the later years.
  • Education and Informed Decision-Making
    Choosing the right financial products, especially in estate planning, requires a clear understanding of options and potential risks. Avoiding inferior products and opting for well-planned, guaranteed policies can help protect family wealth effectively.

About the Guest

William F. Rainaldi, CFPยฎ
Author, Social Security Specialist, and Senior Financial Services Consultant at Security Mutual Life Insurance Company of New York. Host of the “SML Planning Minute” podcast, where he shares expert insights on financial planning and retirement strategies.

Transcript

Olivia : Hello and welcome to the Control Your Cash podcast. I’m your host, Olivia Kirk.

Tim: And I’m your co-host, Tim Yurek. Today, we have a repeat guest with us, Bill Rainaldi. Bill, welcome back!

Bill: Thank you, Olivia. It was an honor to be here the first time, and it’s even more of an honor to be invited back. So, thank you very much.

Olivia: Weโ€™re happy to have you! So, Bill, a lot going on out there in the estate planning world, and obviously, last week’s election probably changes things or maybe moves things a little bit. But one of the things that, in anticipation of the Trump tax cuts sunsetting in 2025, there was a lot of positioning in the financial services industry. It seemed that the estate tax exemption was probably going to go down starting in 2026. With all of that noise that was happening at the time, I couldn’t help but think about your dad, Frank Rainaldi.

Tim: Yeah, your dad was an iconic figure in the financial services industry when I came in back in 1985. What I’d like to do is, if you can, letโ€™s talk about your dad a little bit.

Bill: Sure. I grew up in his house, and eventually, I worked for him and became his business partner in later years. Iโ€™ll say this about him: I don’t think anything really came easy to him. He became one of the intellectual leaders in the estate planning business, which was amazing when you consider that he was basically a shy and quiet kind of guy. He had to overcome so much in his life to get to where he got. I know, for instance, he lost his own father at a young age, and I think that really brought out this determination in him that he used for the rest of his life.

Bill: For example, my dad was average size, about 5’1″, and yet he went on to become a Division One college football player โ€” an offensive lineman at that. He was outsized by pretty much everyone on the team. He even had running backs bigger than he was, yet he played college football at that level because thatโ€™s the kind of determination he had. Iโ€™ll tell you one quick story involving me when I was 8 years old.

Olivia: Sure, go ahead!

Bill: Like every kid growing up in that era, I loved playing baseball. I loved going out and playing Little League. I remember this one game โ€” bases were loaded, and I was playing center field. We were up by one run with two outs. The ball was hit to me, a base hit. I picked it up and saw the winning run looked like they were going to try and score. So I reared back and threw the ball as hard as I possibly could. I threw it so hard that I broke my arm in the process. I could hear it break; it was awful. To make matters worse, the catcher dropped the ball, and we ended up losing the game. I came back crying, holding my arm. The shortstop even told me, โ€œIt’s okay, Billy, you don’t need to cry. You made a good throw.โ€ He didnโ€™t realize Iโ€™d actually broken my arm.

Bill: So I went to the doctor the next day after going to the hospital, and he looked at the x-rays. I had this other problem with my arm. He concluded by saying, telling me that my baseball career was over. I couldn’t play baseball anymore at 8 years old, and I was devastated.

A couple of days later, after that, my dad came to me, and he said, โ€œYou know, I talked to the doctor. How about if you learn how to play baseball left-handed?โ€ And I said, โ€œWhat?โ€ He said, โ€œPlay baseball left-handed.โ€ So he took me outside, and I started throwing the ball left-handed. After about 10 minutes or so, I said, โ€œI can’t do this. There’s no way I can do it.โ€ But he insisted that I stick with it.

So I spent that entire summer learning how to play baseball, throwing the ball left-handed, and I came back the following year. For the next two years, I played as a left-handed outfielder, left-handed center fielder on my Little League team. Actually, there was one game the second year where I ended up saving the game by making this unbelievable catch at the end of the game. So I learned a valuable lesson about determination at that point from my dad. Thatโ€™s a lesson I continued to learn from him all the way through the rest of his life, including the time when we were in business together.

Tim: Well, thatโ€™s a great story. You know, that was so creative, just to have him think that way, you know?

Bill: Yeah, that was one of his basic business principles too, that thereโ€™s always a creative way to find a solution to a problem you have. In fact, this also applied to me last week. Iโ€™ll tell you another quick story, if you donโ€™t mind.

Olivia: Please go ahead!

Bill: I was meeting this new group of people last Friday, and it was a Zoom meeting โ€” an initial meeting โ€” and I really wanted to make a good impression on these people. After the meeting ended, I thought to myself, โ€œBoy, you were really terrible.โ€ I thought, โ€œYou really laid an egg. You were supposed to talk to them about all these ways you can help them solve their problems, and instead, you ended up talking all about yourself. You really blew it.โ€ But then I remembered something else my dad had taught me. He said โ€” this is a business principle I learned much later on โ€” he said, โ€œItโ€™s better to have a bad meeting with good follow-up than a good meeting with bad follow-up.โ€

Tim: Oh, wow.

Bill: So you better believe Iโ€™ve already followed up with these people, and weโ€™ll see what happens. But that was another valuable lesson I learned from him.

Tim: Wow, thatโ€™s awesome. You know, so I donโ€™t know if we want to venture into this, but especially now that, with President Trump winning, thereโ€™s probably a better probability that the estate tax exemption will stay where it is. Is that a fair estimate, Bill?

Bill: I think all bets are off right now, Tim. Up until the election, for the last few years, the base assumption in the estate planning industry was always that the Tax Cuts and Jobs Act of 2017 would be allowed to expire. That meant not just the estate tax reduction or enhanced exemption but also the income tax cuts. The thought was always that by the time the law was set to expire, there would be some sort of divided government. You know, the Democrats would hold one house of Congress, the Republicans would hold the other, or the Democrats would hold the White House โ€” or vice versa. There was always going to be that kind of balance in there to prevent changes. It was never thought that the Republicans would hold all three โ€” the White House, the House, and the Senate.

Bill: Now that thatโ€™s the case, weโ€™ll see what happens. I think thereโ€™s at least a halfway decent chance that some of the provisions are going to be renewed. I donโ€™t know about all of them, but theyโ€™re going to have to get to work, and theyโ€™re going to have to get into committees and whatnot and try to figure out what to do. I think thereโ€™s a good chance that the estate tax, as you mentioned, the exemption right now is $13.6 million per person. So what that means is that any married couple who has less than $27 million doesnโ€™t have to worry about the estate tax. If thatโ€™s allowed to expire, then that amount gets cut in half back to where it was when we used to do our estate planning work โ€” to a much lower figure than that.

Bill: Now, even that lower figure is still not going to affect that many people, right? There arenโ€™t that many people with $13.6 million as a married couple. But there are going to be more people affected if that rule changes. So, weโ€™ll see what happens. I think thereโ€™s a halfway decent chance that now at least theyโ€™re going to extend that law and keep it at that higher amount, but weโ€™ll see.

Olivia: Yeah, and even though there arenโ€™t a lot of people, for those people who do fall into that category, itโ€™s a big deal for them, right? Because the estate tax is, what, 40% of whatever is there, right? The governmentโ€™s going to get 40%, so if you fall in that category or donโ€™t fall in the category currently and are going to, that planning is important. Figuring out whether itโ€™s going to impact you is a big deal monetarily for your estate.

Bill: Yeah, if it does expire, then a lot of the older concepts my dad used to talk about all the time are going to come back into vogue. So, weโ€™ll see what happens. It could go either way. But youโ€™re right, Olivia, in the fact that the estate tax rate is 40%, and thatโ€™s pretty steep. Thatโ€™s going to get your attention โ€” you could lose 40% of your assets in one shot.

Tim: Itโ€™s especially troubling, you know, being a steep tax, and itโ€™s progressive as well, right? So the larger your estate, the higher the rate.

Bill: Not really. I mean, the maximum is 40%, but we assume most people are going to be at that 40%.

Olivia: Right, right.

Bill: But hereโ€™s the thing I have trouble with on the estate tax. Weโ€™re already taxed on our income, and then with that after-tax money, if we build a business, are successful investing, or save money, we build a significant estate. Then they come back and get you again. Itโ€™s like thereโ€™s no incentive to be successful financially.

Tim: Yeah, I mean, I think the governmentโ€™s answer to that is that what theyโ€™re taxing is your right to give your property to whoever you want. And thatโ€™sโ€ฆ you know, I tend to agree with you, Tim, on that. I thinkโ€ฆ and the other thing I would also point out, besides that, is that if you look at where the government gets its money, itโ€™s primarily income taxes and payroll taxes. This is like a third-step cousin when you talk about the estate tax. In other words, it doesnโ€™t generate that big of a percentage of their overall revenue, so they wouldnโ€™t be giving up that much to extend those exemption amounts.

Bill: But I just want to say, Tim, I agree with you 100% in the sense that you give someone an incentive to go out and work and to build an estate, and if you take away that incentive, all of a sudden it has consequences.

Tim: Yeah, and it seems to me that the estate tax, because weโ€™re not talking about a lot of money on an annualized basis that comes into the Treasury through estate taxes, itโ€™s almost like itโ€™s a dog whistle to say, โ€œWeโ€™re going to make the rich pay their fair share.โ€ The only problem is, you know, with all due respect, yeah, $13 million is a lot of money, but itโ€™s not like โ€œscrew-you money,โ€ right?

Bill:

Tim: So, you knowโ€ฆ and again, when you thinkโ€ฆ like, we see it because weโ€™re on the front line working with successful business owners, successful people, and we see how hard they work. And itโ€™s not just how hard they work to build their business or their lifestyle, but itโ€™s how hard they work to try to maintain it as well. You know, I had one of my first clients going back to 1986. He said something to me that Iโ€™ve remembered to this day. He said, โ€œYou know, having money or having wealth is like having teeth.โ€ And he said, โ€œYou know, when a baby is born, itโ€™s born without teeth, and then for the first year or two of its life, it works as hard as it can to make those teeth or to have those teeth come out so that they can use them. And once those teeth are there, that child has to work the rest of its life to keep those teeth.โ€ And he said, โ€œThatโ€™s how it is with wealth. Nobodyโ€ฆโ€ And this guy was a self-made guy, and he said, โ€œNobody handed me anything. I had opportunities, I took advantage of them, some didnโ€™t pan out, and the ones that did put me where I am today, and Iโ€™m grateful for that. But nobody saw the blood and sweat and tears that had to go in and the anxiety when some of the things that I was trying to do didnโ€™t work out. And I bore that risk as well as the reward of the ones that were successful.โ€

Olivia: Yeah, and whose money is it, right?

Tim: Exactly.

Olivia: Isnโ€™t it yours? Donโ€™t you have the right to do what you want with that money? Isnโ€™t that basic freedom that we have?

Bill: Ostensibly, you would think

Bill: And just to evolve the discussion a little bit, Tim, I know one of the things my dad used to say when we talk about protecting your assets is that sometimes itโ€™s better to control money than to actually have it. And that gets into the concept of a life insurance trust and what a great vehicle that is to protect your assets for future generations. If you control the money but donโ€™t actually own it, then guess what? Your creditors canโ€™t get to it because itโ€™s not your money. And if you got divorced, for example, your ex canโ€™t get to it because itโ€™s not your money.

Bill: And thatโ€™s one of the key concepts we always used to try to get across: how to use that estate tax exemption to put the money someplace else where itโ€™s going to continue to grow for the benefit of your family. At the same time, itโ€™s protected, and you donโ€™t have to worry about whatโ€™s going to happen to that money. You might have a childโ€”and this is certainly not you, Oliviaโ€”but you might have a child who spends money like crazy and ends up spending the entire inheritance. With something like a life insurance trust, you have that double measure of protecting some assets from being spent down unnecessarily.

Olivia: Yeah, absolutely. And that also keeps it a little more private than having it in your will or going through your estate. You could have a separate policy or a policy divided a certain way for individual children, and they donโ€™t necessarily have to know what the other oneโ€™s getting, which is obviously a big deal.

Bill: And again, the concept of a life insurance trust fits very well in there too, because itโ€™s managed outside of all the other issues you might have to deal with. I agree 100%, Olivia. Thatโ€™s right.

Olivia: Absolutely. And then it doesnโ€™t add to your estate, right? The amount of money in your estate, so hypotheticallyโ€ฆ

Tim: Right. So, how do peopleโ€ฆ because I know a big issue if youโ€™re facing an estate tax burden is having the liquidity to fund those estate taxes. So, when it comes to that, how should life insurance be positioned to help alleviate that burden without adding to the amount thatโ€™s going to be paid in taxes?

Bill: Well, again, that gets back to the concept of third-party ownership. If itโ€™s owned by a trust, and there are estate taxes due, that trust can provide that money. For example, we used to talk a lot about whatโ€™s called a joint life policy, a second-to-die life insurance policy. If you have a married couple, usually what happens is when the first spouse dies, the bulk of the assets go to the second spouse, and thereโ€™s never an estate tax. Thereโ€™s whatโ€™s called an unlimited gift or bequest to the surviving spouse, so thereโ€™s no estate taxes due. But when that second spouse dies, then all of a sudden, there may be an estate tax because that first spouse isnโ€™t there anymore.

Bill: With the second-to-die or survivorship life policy, itโ€™s on two lives โ€” the two spouses โ€” and itโ€™s payable when that second spouse dies. So if there is an estate tax, that money becomes available when itโ€™s needed for that estate tax and not before or after.

Tim: Iโ€™m glad you brought that up because, you know, my experience with survivorship or second-to-die life insurance has really not been that great. Let me explain: In general, the husband ran the business, and because of the size of their estate, they would purchase second-to-die insurance. But generally, the life expectancy of a business owner is a full five years less than the average American.

Bill: Never heard that, wow.

Tim: Yeah, so Iโ€™m glad I sold my business and got my life back. But the point is that, in general, the husband will die before the wife because, just because of genetics, females have a longer life expectancy than males. And in general, the wife is usually a couple of years younger than the husband. My point is that when the husband dies, thereโ€™s usually a lack of income for the surviving spouse, and the surviving spouse canโ€™t afford to pay the premiums on that second-to-die policy. Consequently, the policy ends up either not being funded, reduced, paid up, or lapsed. Thatโ€™s the experience Iโ€™ve seen over 40 years in financial services.

Tim: What Iโ€™m seeing is that those policies arenโ€™t literally being paid out because of that issue. I donโ€™t know what your experience is, but I bring that up because itโ€™s something that, in general, people should look at, or at least be considering a regular life insurance policy on the husband as well as a survivorship. What are your thoughts, Bill?

Bill: Yeah, I understand exactly what youโ€™re saying, Tim. Itโ€™s almost like a hierarchy of needs, right? I think paying off or figuring out how to deal with an estate tax with a second-to-die policy is a priority for people who are in that financial situation. But obviously, the first priority โ€” and the reason people get life insurance when theyโ€™re younger โ€” is to protect their spouse and children when the money is needed. Thatโ€™s the first priority: to make sure they have enough money to survive if the business owner dies. So, thatโ€™s number one.

Bill: Number two is that a second-to-die estate planning policy is more of a pure financial play, a cheaper way to deal with this estate tax issue in the future. So, I think theyโ€™re two separate considerations. But I agree with you in the sense that the first priority is to make sure that your survivors are going to be okay for the rest of their lives if youโ€™re not there anymore. This second-to-die policy is a higher priority for a higher-income individual who already has that taken care of. I probably should have clarified that, but thatโ€™s really where this type of plan belongs.

Tim: Absolutely. And again, I understand the logic of it, but the practice of itโ€ฆ what people didnโ€™t maybe count on was the husband dying not too long after the financial crisis when their estate got cut by 40% โ€” assuming they sold their business and had their money invested. Then, their investable assets got cut by 40-50%, and now theyโ€™re looking at the prospect of possibly running out of money and having to fund a life insurance premium.

Bill: Yeah, then under those circumstances, I wouldnโ€™t blame anybody for not funding that life insurance premium โ€” or delaying it, if you can. This is where a professional like you and Olivia can really be of value to someone, to try and navigate that, figure out the best way to deal with it, and keep everything together. At the end of the day, it all comes back to that creativity โ€” the ability to solve problems for different situations. No one product is good or bad; itโ€™s how itโ€™s used, how itโ€™s applied, how itโ€™s funded, and how itโ€™s maintained over the lifetime of a client.

Olivia: Right, and as circumstances evolve as well.

Bill: Absolutely. And another thing that Iโ€™ve been seeing a lot of lately is clients โ€” some of my dadโ€™s old clients โ€” who live well into their 90s, and all of a sudden, the life insurance they had becomes more difficult to fund. It might have been guaranteed to age 95, but what happens if you get past age 95? Thatโ€™s another area where serious financial professionals like yourselves can help navigate and try to address that a couple of years ahead of the looming issue.

Tim: Exactly. And weโ€™ve seen that. Weโ€™ve seen some horrific situations that have come from people not planning to live as long as they did, and now they have issues. Longevity increases the risk of all the other risks that are on the table.

Bill: One of the keys is what Olivia said before about funding and maintaining those policies. We had a client where he hadnโ€™t properly funded his life insurance policy, and the way the policy worked โ€” it was called a universal life policy. The way it worked was that if he reached age 95, heโ€™d get the cash value of the policy, not the death benefit, and the cash value was almost zero. I donโ€™t know how to say this because it sounds kind of rude and awkward, but the guy died when he was 94 and a half. It could have been worse. If he had made it to 95, that policy would have essentially disappeare

Bill: So, you really have to be careful and make sure youโ€™re addressing this along the way to make sure itโ€™s properly funded.

Olivia: Bill, that is such a great point because weโ€™ve seen a lot lately of people who have purchased universal life policies specifically for estate planning or business planning purposes. We have one case now where the woman is 91 years old, and a $2 million death benefit โ€” right now, if she lives to 92, itโ€™s going to be cut to $800,000. If she lives to 93, itโ€™ll be cut to $200,000, and if she lives beyond 93, itโ€™s zero.

Bill: Yeah, and I think thatโ€™s a classic situation where the product doesnโ€™t fit the concept or the solution. The universal life product was supposed to be a permanent solution, but it really isnโ€™t, and I think that onus falls on the agent for literally selling an inferior product.

Tim: Right, I mean, I think people always assumed that whatever interest rate they were paying back then โ€” back in, say, the early โ€˜90s โ€” was going to continue. They had no idea the bottom was going to fall out of interest rates, and as a result, thereโ€™s not as much money inside the policy. Thatโ€™s what made it work.

Olivia: And the crime of it is that they could have purchased the right product for not much more or probably the same as what they paid for the inferior product, but it wasnโ€™t proposed to them.

Bill: Yeah, and at the end of the day, it does come down to making sure youโ€™re educated and making informed decisions because those universal life policies do end up transferring a portion of the risk โ€” like we saw in that example โ€” to the insured, the policy owner. With that, you know, it gives insurance a bad name because people hear about these experiences where people had โ€œpermanentโ€ insurance that wasnโ€™t actually written to deliver what they thought they were going to get. I think itโ€™s a lack of education sometimes on the agentโ€™s side, especially because theyโ€™re the ones communicating what to expect to the client.

Olivia: And I would add to that too, Bill, I think when those policies are presented, the first issue people look at is โ€œHow much does it cost?โ€ Theyโ€™re likely to take the cheapest initial premium price without realizing what implications that might have in the future. Thatโ€™s why we end up in situations like this, because of that cheaper premium cost initially.

Bill: Absolutely. And a lot of times, theyโ€™re presented as this new shiny thing, and they illustrate so much better than the whole life policies. So as the client, it seems like a no-brainer: โ€œI want this new shiny thing thatโ€™s going to perform better than this old dinosaur.โ€ What happens is it doesnโ€™t actually end up happening that way for the client, and you donโ€™t find out youโ€™re making those mistakes until so far down the line with so much money in the policy that youโ€™re like, โ€œOh God, what did I do? How do I fix it?โ€

Olivia: Hopefully, thereโ€™s enough cash in there where youโ€™re able to resolve it. And hopefully, you have enough health left in you to resolve it with a better, more stable, longer-lasting policy with guarantees

Bill: Thatโ€™s a great point, Olivia, because those policies arenโ€™t necessarily bad, but they definitely need to be monitored along the way. I think thatโ€™s where weโ€™re seeing the issue: nobodyโ€™s watching it. Nobodyโ€™s monitoring it, testing it, or making sure that what they wanted to have happen is going to happen. The problem is, again, nobodyโ€™s overseeing it. Those policies tend to require a little more checking, testing, and monitoring along the way, and most agents arenโ€™t willing to do that.

Tim: Well, as the agent, from the agentโ€™s side, that testing and monitoring is going to mean, โ€œOkay, I sold you this policy, I said itโ€™s going to cost this amount of money per year to get you this amount of death benefit and this amount of cash value, but this year we need more money to achieve that.โ€ Who wants to have that conversation?

Olivia: Well, then the answer is donโ€™t sell it! Which, by the way, we donโ€™t. Our clients never have that problem with stuff we sell because we sell the guarantees. We do worst-case scenario planning when we make our recommendations, and thatโ€™s a huge difference.

Tim: So, Bill, thank you so much for joining us on our podcast a second time. Youโ€™re in elite company because I think you might only be the second or third person that weโ€™ve had back for a second round.

Bill: Well, listen, thanks to both of you, and I would love to do this again because thereโ€™s a lot more we can talk about, not just related to insurance but related to other financial concepts as well. Iโ€™m thrilled and honored to be part of this and to work with both of you, so thank you for the opportunity.

Olivia: Thanks, Bill. Weโ€™ll see you next time in that case.

Tim: Bill Rainaldi, thank you!

Essential Social Security Strategies: Key Decisions You Canโ€™t Afford to Ignore for Maximizing Retirement Benefits

Episode Summary

In this episode ofย Control Your Cash, hosts Olivia Kirk and Tim Yurek are joined by Bill Rainaldi, a Senior Financial Consultant at Security Mutual Life Insurance Company of New York and an expert in Social Security planning. Bill dives deep into the complexities of Social Security, including spousal benefits, optimal claiming ages, and common mistakes people make when deciding when to start their benefits. He also explores how life insurance can play a pivotal role in long-term financial planning, especially for families with children and retirees. Throughout the conversation, the hosts and Bill emphasize the importance of consulting with knowledgeable financial professionals to navigate these decisions and avoid costly errors. Whether youโ€™re nearing retirement or looking for ways to maximize your Social Security and insurance benefits, this episode offers essential insights.

Key Takeaways

  • Understanding when and how to claim Social Security can significantly impact spousal benefits and long-term income security.
  • Life insurance isnโ€™t just for young families; itโ€™s also a critical asset in retirement planning, especially for estate protection and tax-free inheritance.
  • Social Security offices often provide limited information, so asking the right questions and consulting with a financial professional is essential.
  • Early financial planning with the right professional can help avoid common mistakes that may lead to lost benefits or higher taxesโ€‹.

About the Guest

William F. Rainaldi, CFPยฎ
Author, Social Security Specialist, and Senior Financial Services Consultant at Security Mutual Life Insurance Company of New York. Host of the “SML Planning Minute” podcast, where he shares expert insights on financial planning and retirement strategies.

Transcript

Olivia: Hello and welcome to the Control Your Cash podcast. I’m your host, Olivia Kirk.

Tim: And I’m Tim Yurek. And we have a special guest today, Bill Rinaldi, who is the Senior Financial Consultant for Security Mutual Life Insurance Company of New York. And Bill is a specialist in Social Security planning. Bill, welcome to the show.

Bill: Thank you, Tim. This is great to be here. You know, uh, you were a guest on my podcast at Security Mutual a few years ago, and it was one of the best perceived podcasts we’ve ever had, so I’m hoping to do the best I can to, to, to match that today. So, we’ll see.

Tim: <laugh> Awesome. Well, I know we have a lot of great information in store for us today. And, and thank you again, Bill, for, for joining us.

Olivia: So, Bill, um, let’s talk about Social Security because it seems to me that Social Security is probably one of the most misunderstood benefits, misunderstood pillars, if you will, of our retirement planning. So if you could talk to us about what are some of the biggest mistakes that people make as it relates to their Social Security claims or their strategies?

Bill: Well, first of all, Tim, I agree a hundred percent with what you said. Um, I have this economic theory, which is that any time you have a government program, uh, that stays around for a long time and becomes very popular, it’s inevitable that at some point it’s gonna get so complicated that nobody understands it. And unfortunately, that’s what’s happened with Social Security. Now, there are a lot of nooks and crannies, a lot of little special things you gotta know, and it is incredibly complicated, but at the same time, it affects everybody. Everybody has a Social Security benefit pretty much, and everybody wants to get the most outta Social Security. So the simple question people ask is, well, when should I claim my benefit? That’s the one thing that people want to know. Now, if you ask me, I think the biggest mistake people make is that they don’t seek professional help when it comes to figuring out what to do.

This is so tricky and so complicated, and there are so many things. For example, there might be children’s benefits. There’s almost always what’s called a survivor benefit in Social Security. Uh, there could be disability benefits that, that have an impact. There’s so much to know that it’s almost impossible for an ordinary person to know everything they need to know about when to claim. Um, the one biggest thing I think people miss is survivor benefits on Social Security. That’s huge. And when you understand that, you might be inclined to collect a little later than you otherwise would. Soโ€ฆ

Tim: Yeah, absolutely. So, Bill, when it comes to Social Security, what, in your opinion, is the most important thing that, that someone needs to consider? Right. So there, there are so many moving parts when it comes to Social Securityโ€”you know, the benefits, the age, um, the spousal benefits. What, what needs to be focused on when you’re making that, that big decision?

Bill: Well, the age difference between the two spouses is really important. Uh, one of the other things that’s incredibly important is life expectancy. Um, so many people, for example, are inclined to collect their Social Security as early as possible. And usually it’s because they believeโ€”or I shouldn’t say usuallyโ€”most of the time, a lot of the time, it’s because they believe that it’s not gonna be there in the future. Uh, so, “I’m gonna get mine while I can” seems to be the general philosophy. Well, that’s fine. If you’ve got a life expectancy and you think, you know, you might not make it past age 70, then maybe you would wanna collect at age 62. However, the majority of people seem to be living longer now than they initially expected. And if you’re gonna live into your 80s or perhaps your 90s, you’re better off waiting as long as possible to start the actual collection process.

So that’s a huge one, Olivia. I would also add to that one thing that people miss, and I just mentioned this a few minutes ago about survivor benefits. Survivor benefits are one of the only simple things about Social Security. Okay? If, if you’re married and both spouses, let’s say, live past age 67, then survivor benefits are fairly, uh, easy to understand. But it’s the one thing that people don’t even consider when they’re trying to collect or trying to figure out when to collect. They collect based upon their own life expectancy, and they don’t consider their spouse. Now, let me give you a quick example of how survivor benefits work. Let’s say my benefit is $2,000 and my wife’s benefit is $1,000. Now, she’s three years younger than me, and she’s also female. You know, women tend to live longer than men by about two or three years.

So you factor all that in. But if I collect, that means that if I collected at my age 67, I would get $2,000 a month. If I waited until age 70, I would get an extra benefit because I would get 24% more money or $2,480 a month by waiting until age 70 to start. Uh, now I might think, “Well, I’m probably gonna live to, I don’t know, 75 or something like that. Why would I do that? That doesn’t make any sense ’cause I’ll never make up that difference.” But with a survivor benefit, my wife would take over my benefit because hers is lower. She would take over my benefit if something happens to me. So I might live to 75; she could live to 95. So when I make that claiming decision to start at age 67, it’s probably not gonna just affect me. It’s also going to affect her, and she’s gonna get stuck with that lower benefit if something happens to me. That’s probably the most basic concept I think people miss, Olivia, that, that they need to understand about Social Security.

Olivia: Yeah, that’s, that’s huge, and it’s a huge difference for so long. So I imagine that even comes into effect if, say, you know, you were to die before you started claiming. She would still be able to claim that higher spousal benefit going forward, right?

Bill: Uh, in most cases, yeah. If I were, let’s say I died at age 68 and I wasn’t collecting yet, I would be frozen at age 68. My benefit would be frozen at that point. That’s still gonna be higher than her $1,000. But, uh, you know, so, so yes, but, uh, it’s not gonna be the full age 70 benefit because I didn’t make it to that age.

Olivia: Okay. Yeah. And that’s still gonna be higher than, let’s say, if you started collecting at age 66 or 67, you know? Um, so that makes a, a huge difference. And I imagine that’s one of the biggest mistakes that people make when they’re, they’re processing these claims, um, and starting their Social Security benefits.

Bill: Oh, absolutely. And there are, there are plenty more, but that is, that is the one I see most commonly. So, yeah.

Tim: Bill, does it ever make sense? You know, so, you know, it seems that the, a prudent strategy might be to consider your life expectancy as well as the life expectancy of your spouse when making your claim. With that in mind, does it ever make sense in your opinion, uh, to claim, let’s say, at at age 62? Is there, is there an argument that one spouse or the other should claim at age 62?

Bill: Sure. Well, first of all, if you’re a single person, then you don’t have to deal with the other spouse, right? So under those circumstances, it’s strictly a, a play on your life expectancy. If you’re in bad health and you turn 62 and you’re not workingโ€”I’ll talk about that in a minuteโ€”but, and if you’re not working, uh, then yeah, you would probably want to collect as early as possible. Uh, now there is another situation for a married couple. Let’s say the, um, the unmarried, the, the, the, uh, the younger spouse is age 62, and, and that spouse has a much lower benefit than the older spouse who’s going to wait until age 70 because that becomes the survivor benefit. You follow? In, in those circumstances, if that older spouse is willing to wait and can afford to wait till age 70, then it doesn’t make that much of a difference when the younger spouse collects.

And if the younger spouse wants to collect at age 62 under those circumstances, that’s fine. The only thing you gotta watch out for is what’s called the earnings test. And the earnings test basically says that if you’re gonna collect your Social Security early, uh, you better not be working, earning a wage and making a lot of money because the, it’s gonna disqualify you from collecting any Social Security benefit. Uh, the earnings test amount in 2024 is, uh, $22,000 in change. And basically what happens is, if you make more, if you as an individual make more than that amount in wagesโ€”not interest income, not withdrawals from an IRA or anything like thatโ€”but if your wage income is more than $22,000 in change, your Social Security benefit, should you try to collect it, will be reduced $1 for every $2 over that limit. So let’s say you’re still working and you’re making $70,000 a year or something like that, um, you really don’t have a choice. You either have to give up your job or you can’t collect Social Security. Realistically speaking, those are your two choices if you wanna continue working and make that kind of money. So, other than that, yeah, there are, there are definitely some circumstances where it makes sense to collect at 62.

Tim: Now, Bill, let’s say you’re earning $40,000 and the threshold is $22,000. So in that scenario, you’re giving back $1 of benefit for every $2 over the threshold. So roughly it’s $9,000 that you would be giving up. And that’s in that example.

Bill: That’s, that’s correct. And if you have a small personal benefit, remember at that circumstance you’re starting at age 62. So remember I said you get more when you wait till age 70, you get less at 62. Right? So it’s quite possible that that $9,000 could significantly reduce and in some cases even eliminate that Social Security benefit entirely. So yeah, I mean, sometimes if you’re making $40,000, it’s just not worth applying for, uh, that Social Security benefit. And some, some people will, Tim, they’ll, they’ll work part-time or whatever just to get up to that $22,000 threshold and then not go above that threshold. So that happens as well.

Tim: Yeah, I, I’ve seen that quite a bit, but that is probably one of, in my estimation, Bill, just dealing with people on a daily basis and talking about their retirement planning, that is probably one of the most misunderstood aspects of Social Security. The fact that, hey, yeah, you know, I’m still working and I’m gonna, I’m gonna collect at 62 because I don’t think Social Security’s gonna be there and I wanna make sure I’m getting mine. And I understand that philosophy. But then when you explain to them that, hey, you’re not gonna be able to earn more than $22,000, well gee, I make $50,000. Well, now you have this giveback that you have to consider. And people don’t underโ€”you know, they, they, up until that point, they were completely unfamiliar with it. And you know, I, I would explain it to them and then I would suggest that they call the Social Security Administration and just get verification on that. And sure enough, they do and they come back and say, “Okay, now what do I do?”

Bill: Well, yeah, you do have the option to withdraw within 12 months too. And I’ve seen people do that. Um, the problem with withdrawing is that you gotta give ’em back whatever you have already collected. So, but so, it, it, it’s really kind of a hassle to deal with with, uh, with all that. I’ve also seen situations, Tim, where people have, uh, just, you know, you fill out when you, when you apply for Social Security and let’s say you’re age 62, you fill out a form online and you tell ’em you’re not gonna make any money, and you know that’s not true, but you just figure out they’re gonna tell ’em that and that get, and, uh, they’ll never figure it out. Well, guess what, uh, they do talk to the IRS and they do find out what money you’re making. So, uh, that can get into an ugly situation where they’re gonna demand money back from you, uh, with what’s called a demand letter. So you don’t wanna deal with that. You wanna be honest with them and tell them the truth and make an honest decision about whether you should be collecting at 62 or not, or 63 or 64 or 65, you know?

Tim: Right. And, and you know, Bill, that makes sense. I mean, for us to be honest with the government, ’cause they’re always honest with us.

Bill: <laugh> Uhhuh. <affirmative> Sure. Well, understand, Tim, just to follow up on that, I just wanna makeโ€”just follow up on what I just said earlier too. The, this is the Social Security Administration. Okay. It is not the IRS. Okay. The Social Security Administration can’t garnish your wages. They can’t send an auditor to your house or anything like that. They don’t have those powers. However, it’s not like they don’t talk to each other, okay. And they don’t find out whatever they need to find out from each other. So just keep that in mind. I think the SSA is actually a little bit more efficiently run than a lot of other government agencies. So.

Tim: Yes, for sure. Um, so, Bill, talk to us about, um, the, you know, we talk about life expectancy planning when we’re making our decisions. Talk to us about where life insurance fits into the equation when making your Social Security claiming strategies.

Bill: Well, sure, there are probably about a, a dozen different situations that I can think of where life insurance can help with the decision. But I’ll give you just one example, uh, of where life insurance can make a huge difference. Go back to that example I gave you before where I’m collecting $2,000 and my wife is collecting $1,000 a month, let’s say. Um, we do the right thing. We, and I don’t collect early, so I’m getting that $2,000 for life. Uh, if something happens to me, the good news for my wife is that she gets a, a bump in her benefit, right? She was collecting $1,000, but now if something happens to me, she goes from $1,000 to $2,000 a month, right? That’s the good news. But there’s bad news too, isn’t there? The bad news is that collectively, the two of us were collecting $3,000 a month as a married couple in our household.

Now, something happens to me, it goes down to $2,000 a month. Uh, you know, what’s gonna happen with the household expenses? I mean, I mean, in my case, there’d be a lot less food in the house, all right? But <laugh>, but we might make it up because <laugh>, we might make it up because, uh, she’s gonna have to pay someone for maintenance on the house, the stuff that, you know, maybe I do around the house. What’s gonna happen with the real estate taxes? Are they gonna go down because I’m not there anymore? No, they’re gonna stay the same, right? Mortgage is gonna stay the same, right? None of that is gonna change, but there’s less income coming in to pay those expenses. And my experience with older people has always been that once you get past a certain age and you’ve been in your house for a while, you wanna stay there for as long as possible.

You’re not in any great hurry to go and, uh, move into assisted living or anything like that. So how do you solve this problem? You have less income and the same expenses. Well, a life insurance policy could create that pool of money. So you could write a, a, a life insurance policy on me, you know, and it wouldn’t have to be that much in terms of with the way life insurance is normally valued, you know, $300 or $400,000 and I would buy that at a younger age. But what if something happens to me? You have that extra money there and that can help, uh, offset those extra expenses, um, after I’m gone. That’s one basic idea.

Olivia: Yeah. And, and so not only to offset those expenses, but to replace the lost Social Security benefit.

Bill: Exactly. Yeah. Yeah. That, that, that’s exactly right. ‘Cause you have a pool of money now that you can draw from as needed. Uh, so, and uh, and it would just, it would just, uh, set my wife’s at ease knowing that, that that’s there, that she’s not gonna have to move out of the house because something happens to me.

Tim: Yeah, and that’s a good point, right? Because most people are under the mistaken idea that I won’t need life insurance after age 65. And the, the fact that there will be an income reduction at the first death because of the loss, Social Security, uh, benefits at the first death. Now, funding for that eventual loss is probably a prudent thing. And therefore keeping your life insurance benefits in effect post age 65 probably makes some sense.

Bill: You know, I, yeah, Tim, it’s interesting ’cause I, I’ve dealtโ€”and I’m sure you’ve found this similar to in your situationโ€”I’ve dealt with hundreds of people who have life insurance and get past a certain age. And I don’t remember ever any one person when they get to that point saying, yeah, I don’t want this life insurance anymore. Uh, ’cause first of all, they probably got it when it was a lot cheaper at a younger age than it is now. And, uh, for some reason, there’s always a use for that life insurance, even once you get past retirement age. So that’s been my experience anyway.

Tim: Yeah, that’s, that’s a great point because people in their 50s and 60s are not looking to get rid of life insurance. They are actually looking to purchase more because they see nowโ€”they see the value and the need is probably more pressing, let’s say, you know, their, their runway is much shorter than it was when they were in their 30s and 40s.

Olivia: Yeah, absolutely. And I, I think about like the term policies on, on young couples, um, being put in place, you know, for the benefit of the kids, right? So if one of the, one of the parents dies, they’re gonna need money to raise the kids. Um, and really it’s, it’s true. You do need money to raise the kids, but there’s also the, the longer term planning that also often isn’t considered. Um, and I feel like a lot of times, you know, we have that class of people who, who don’t want to get rid of the life insurance at, at a certain age right after they get older. But then there’s the other ones who are, are looking at their investments being paid for by the life insurance. And I feel like they, they don’t necessarily see the benefit that is life insurance, right? Being able to pay pennies to get those dollars tax free when they die is, is a huge benefit, um, that often is overlooked in this industry, unfortunately, you know, by other advisors.

Bill: Yeah. You know, it’s funny, I, I think of my friend Marty Smith who always likes to say to people, uh, “Well, you know, if you have enough life insurance, then you don’t have to worry about spending down their inheritance and you want to go on a trip around the world. Go ahead.” <laugh> So it certainly has its advantages.

Tim: So, Bill, let’s talk about the, uh, let, let’s call it the, you know, the eight-hundred-pound gorilla in the room, which is, will Social Security be around? What, what’s your take on that? What’s your opinion? Because that’s, you know, everybody’s, everybody talks about that.

Bill: Yeah. How many hours do you have, Tim, to talk about it?

Tim: <laugh> Uh, listen, I, I I, I, I’ve, uh, I’ve looked at this in a good deal of detail and, uh, I just don’t believe that it’s everโ€”first of all, if you look at the projection, people say it’s gonna disappear or it’s gonna go bankrupt. That’s not quite true. What they say is, if nothing changes between now and the year 2035, benefits will be reduced by about 20%. That’s what they say. It’s never, it is never gonna go to zero because people are always gonna be working and they’re gonna always be collecting Social Security withholding from people’s paychecks. Um, so the, the real question is what’s going to happen between now and 2035? And I, I don’t know, but I I would absolutely be stunned if there’s ever gonna be any reduction in people’s Social Security benefits. I mean, I, I just think there would be rioting in the streets if that ever happened.

Um, so they’re gonna have to fix it somehow. And if you look at what, uh, the two main, uh, the main nominees are to how, on how to fix it, it’s either A, raise full retirement age, or B, increase the withholding taxes in some way. That might mean increasing the percentage or increasing the number of people who actually pay it, increasing the income limit or something like that. Um, so I, I, as I said, I’d be shocked if something, if, if they didn’t come up with a solution like that, one of those two things. Now it’s not gonna happen tomorrow. Okay. And I don’t think anything’s gonna happen for the next three or four years because people forget this, this happened once before, back in the early 80s, in 1983, the Social Security Trust Fund got down almost to zero, and they were within a year of, of bankrupting that trust fund. Uh, and what they did was a combination of things, you know, they raised full retirement age and they increased the withholding tax. Now that was supposed to last 75 years. And, uh, <laugh> it looks like we’re gonna be a little short on that, so they’re gonna have to do something. But, uh, I would be, I would be, uh, really surprised if, if they didn’t do anything to fix this at, at some point.

Tim: Well, I, I think that’s a great point, Bill, and thanks for addressing that. ‘Cause a lot of people don’t want to touch that question. Uh, so I, I appreciate you going out on the limb and answering that question, but I, I think another thing that they’ll probably do is they’ll just print more money to pay for the benefits and, you know, further kicking the can down the road, so to speak.

Bill: Well, yeah, I mean, technically, Tim, in order to do that right now, they, they legally can’t do it, which means they just have to change the law and then they could do it. So, you know, <laugh> eventually, eventually they, they, they certainly could do that. A, another possibility, and I was thinking about this tooโ€”you remember about, I don’t know how long ago, it was maybe 15, 20 years agoโ€”they got in a situation, the government did, where they decided there were too many military bases in this country, and they had to close some of these bases, and they tried toโ€”Congress tried to work it out themselves, and that became impossible because every congressman who had a base in their district would not allow a closure. So what they ended up doing was appointing this blue ribbon commission to do the dirty work, and that commission decided which bases were going to close, uh, without offending the members of Congress. You know, something like that could conceivably happen in the future, I think, with Social Security as well. So, we’ll see. I don’t know. It, it, it’s just a guess, but something, something’s gotta happen. I think so.

Tim: Yeah, for sure. Bill, is there any other questions you think we should be asking?

Bill: Uh, no, I, I think we, we’ve got a good idea. I mean, the only other thing I would say is understand, uh, one of the reasons that you need professional help when you decide when to collect Social Security is that Social Security’s not gonna tell you about certain things. For example, you might have a child under the age of 18. Social Security is not gonna tell you that, hey, you can collect a, a benefit for this child. Or you have an adult child who’s disabledโ€”hey, you can collect a benefit for this child. So there are so many other extra benefits that you might not be aware of that you really do need to get, get a pro, uh, to help you with this, this sort of thing. So it’s not as easy as it first seems.

Olivia: Yeah, it’s funny. I have some friends who work in the Social Security field, like at, at the offices and they’re in the call center, and when they go through the training, they just learn how to search for the questions on the website and then read the webpage to the people. So if you don’t know the right questions to ask, you’re not going to get the right answers, because half the time they don’t even know the follow-up questions that you should be asking, and they’re not going to give out that information because they’re just going and searching and reading you what they have off the page these days.

Bill: Oh, yeah. And in fact, the, uh, their manual, their, their training manual, Social Security Administration’s training manual is online. It’s thousands of pages long, and it, it’s very difficult. I, I don’t lie, I have to look at it sometimes. I don’t like using it because it, it, it, it ends up confusing a lot of situations. But, uh, uh, yeah, that, that’s exactly right. It, you, you do need to know to have someone who knows the ins and outs of the system either way.

Tim: Now, Bill, I know in the past you have helped me and hundreds of other agents with helping their clients make the best decisions for them, and I think it’s important to understand, like, what special software or programs do you have to help our clients make the best decisions possible for them?

Bill: Well, we use a program called SS Analyzer, uh, and, uh, I, I’ve, I know you’ve seen that, Tim, and you know what it, what it looks like. It, um, it addresses all the issues or, uh, every issue that, that pretty much anybody would, would come across when it comes to Social Security, like the children, like I talked before, um, there’s another issue for state and local government employees where their Social Security benefit might get reduced if they’re getting a pension from that state or, or government agency or a local government agency. Uh, it also addresses that. Uh, but as I said at the beginning, the, the basic question everybody wants to get an answer to is, when should I collect? And that seems to, uh, and this, this program does a great job of, uh, addressing when you should collect, when you should start, and, uh, uh, I’m happy to share that with you, Tim, and other people. So.

Tim: Yeah, absolutely. And, um, it is important to have financial professionals because as so many things in this financial world go, you don’t know what you need to know until, until it’s too late in a lot of cases. So taking those steps, um, preemptively, um, consulting with a professional who, you know, has more knowledge and also has more resources of knowledge, right? Because not everyone knows all the answers, but they should know where to get the answers and be able to communicate that to you in, in a clear and concise way.

Bill: Yeah, and Olivia, I would add something to that, which is, if you make a mistake, it’s gonna cost you money every month for the rest of your life, so you gotta get it right.

Olivia: Yeah, absolutely.

Tim: Yeah. And you definitely don’t wanna leave any money on the table, and that, I think, is ultimately what everybody is trying to accomplish, not wanting to leave any more, any money on the table from our government benefit.

Bill: Well, especially when you look at how much money you put in in the first place, right?

Olivia: Yeah, exactly. That’s a great point, Bill. Well, Bill, it’s only a matter of time before this podcast goes viral and, and certainly this episode. And, uh, I want to thank you for joining us today. We really enjoyed your company, and hopefully you had a good time as well.

Bill: Well, I always enjoyed talking to both of you, as you know. So this has, this has been great. And, uh, I hope people get some benefit out of what we’re talking about today. That’s the main thing.


Outro: Are you a business owner, tired of feeling like your finances are out of control? Do you wish you could minimize risk and maximize returns without sacrificing the growth of your business? Then Tier One Capital is the solution for you. Tier One Capital is a company that specializes in helping business owners take control of their finances and achieve financial success. Their mission is to empower their clients and enable them to make informed financial decisions that benefit their business. At Tier One Capital, they understand that financial institutions and the government can hinder your business’s growth, which is why they strive to identify areas where you may be unknowingly and unnecessarily giving up control. They provide expert guidance to help you reduce tax burdens, increase returns, and build wealth in a tax-efficient manner. So if you are looking to take your business’s finances to the next level, visit TierOneCapital.com today and start your journey to financial success.

The Circle of Wealth: How To Reclaim Your Finances Without Taking Risks

Episode Summary

In this episode, hosts Olivia Kirk and Tim Yurek dive into the intricacies of personal financial control, focusing on how individuals can make their money work more efficiently without increasing risk. They explore the concept of a “Circle of Wealth,” breaking it into three parts: accumulated money, lifestyle money, and transferred moneyโ€”emphasizing how most people unknowingly lose wealth through inefficiencies such as interest on debt, taxes, and fees. Tim and Olivia stress that true financial freedom comes not from taking on more risk for higher returns, but from eliminating wealth transfers and putting individuals in full control of their cash flow. The episode also offers actionable insights on how to reduce expenses without sacrificing lifestyle, drawing an analogy to improving one’s “golf swing” instead of buying better “golf clubs” to illustrate their unique financial approach.

Key Takeaways

  1. Focus on reducing wealth transfers like taxes, interest on debt, and inefficiencies to help grow your circle of wealth without added risk.
  2. Increasing your rate of return is not always the most effective way to build wealth, especially if it involves taking on more risk.
  3. Increasing savings without reducing lifestyle is possible by focusing on reducing expenses rather than chasing higher investment returns. 
  4. Mastering the process of how you use financial products is more important than the products themselves to help achieve financial success.

Transcript

Tim: When it comes to finances, no one wakes up in the morning and says, “Man, how can I mess up my financial situation today?” On the contrary, we’re all doing what we think is best for our specific situation, given our specific resources. But the truth of the matter is that a lot of times, conventional wisdomโ€”whether that be from the media, your family members, or mentorsโ€”a lot of the advice that we hear is actually giving away control of our money and giving away control of our cash flow.

What we do is help our clients, and help you, to become more in control of your cash flow and to make the most of your resources by making your money as efficient as possible. The reason we do this is simple: whoever controls your money controls your life. So here’s a 30,000-foot view of how our process can help you to make your money more efficient. It all starts with this circle right here, your circle of wealth.

Olivia: That’s right. One thing we all have in common is we all have a circle of wealth. Some are larger than others, and others are larger than ours, but we all have one simple thing in common: we want that circle to grow. Now, there are many ways that you can grow your circle of wealth, but what we have found is that every dollar that’s in or going through your circle of wealth is broken up into three areas: there’s accumulated money, that’s the money you have saved and invested, then there’s lifestyle money, that’s the house you live in, the car you drive, the things you do, the vacations you go on, and it’s the schools your children go to because that’s a lifestyle choice for Mom and Dad.

Tim: And the third type of money is transferred money. Do you know what transferred money is? Well, it’s money that we’re giving up control of unknowingly and unnecessarily. It’s things like interest on debt, it’s things like taxes, it’s things like fees and planning inefficiencies. And the key here is that we focus on the transferred monies. Why? Because we feel that is the best way to help our clients make their money more efficientโ€”focus on not losing money rather than taking risks to get a higher rate of return.

So what we’d like to do is sort of show you what differentiates our process from the rest of the financial services industry, and it’s real simple. Do you know that in 2023, according to the Bureau of Labor and Statistics, there were over 272,000 financial advisors in America? And I would be willing to bet that less than a thousand focus on wealth transfers. The rest of them focus on moving the money that you have, because that’s the grease that makes the wheels operate in the financial services industryโ€”moving money.

Olivia: The conversation basically goes, “Hey, you have X amount of money earning 5%, we can show you how to get 7%. Now, you have to take some risk to get there, and you may lose, but at least you’ll get a higher rate of return, hopefully over time.” And then you’ve got to buy into whether or not that’s a strategy you want to implement, but see, there’s no guarantee that you’re going to make more money.

Tim: The second way the financial services industry could help you is to discuss how you could live on less, how you can reduce your lifestyle in order to save more money. Now, that’s a conversation that I don’t want to have with my wife, and I’m sure a lot of people don’t want to have that conversation with their spouse or themselves, especially these days. As you know, the cost of everything is going up between inflation, interest rates, and let’s face it, the salaries that people are earning can’t necessarily keep up with the spending and that lifestyle inflation that came back in the COVID times. So it makes it challenging, and maybe more challenging than ever, to make your money more efficient on your own.

And that’s why we’re here, educating people as to ways to make that money last, make sure it’s accessible to serve you and your family, and help you accomplish your goals all along the way.

Olivia: So how we do that is to focus on these wealth transfers. And basically, our process has four steps. The first step is to identify exactly where you’re giving away control of your money, and when we show you that logically, it will all make sense. The second step is the hardest step in the processโ€”you’ve got to stop doing what you’ve been doing for 10, 15, 20, even 30 years, and it’s a hard habit to break.

Tim: The third step is to show you where to put your money so that you’re in complete liquidity, use, and control of your money. We call it the L.U.C. Factorโ€”putting money in a place where you, and only you, could access it. And then the final step is really where the magic happens, where you borrow money from yourself to fund your lifestyle and pay interest back to an entity that you own and control. And if you take a look at that, basically your money never leaves your control. And that’s the lens through which we look at things to make sure that you’re in control of your money at all times.

Olivia: Now, when we focus on these wealth transfers, again, it’s things like interest on debt, it’s things like planning inefficiencies, it’s things like taxes. But you see, if you paid a dollar in taxes this year that you didn’t have to pay, you don’t only lose that dollarโ€”you lose something more valuable: you lose opportunity cost. You lose what that dollar could have earned for you, and you lose it for the rest of your life.

Tim: So we focus on opportunity costs because every move we make financially eliminates choices that we could have made had we not made that choice. Exactly. And we always say we’ll never see the interest we don’t earn on our money. You know, so a lot of people pay cash and they do it in order to avoid paying interest to outside entities. But what happens is we get a hole in the bucket, if you will, because we lose the opportunity cost, and that’s the unseen.

So we quickly identify where you’re giving up control of your money in six key areas: mortgages, how you’re paying for your real estate, taxes, how you’re funding your retirement, protection areas, insurances, college funding, how you’re paying for your children’s college, and then how you’re making major cash capital purchases. Because what we’ve found is it’s not what you buyโ€”it’s how you pay for it that is going to make the difference in your financial life.

Olivia: So what we try to do is put you in control of your own money. Right now, a lot of the time, you know, depending on your situation, it may be the mortgage companies, the banks, the credit companies, the government, or those major capital purchases like cars and paying for educationโ€”all of these entities seek to gain control of your money and your cash flow. And that’s where the rub comes in.

Tim: So by putting yourself in control, you really regain control of your entire life because now you control all of that cash flow. And I would argue that most of life’s frustrations come from not having access to money when you really want or need something. Now, it might sound overwhelming, it might sound impossible, but the fact of the matter is it’s very simple. Do you remember when you first learned how to play this game, tic-tac-toe? It’s a simple game with simple rules, and the conversation went something like this: the person who showed you how to play basically said, “Hey, here’s a new game, it’s called tic-tac-toe. You’re X, I’m O. You have to get three in a row.”

Olivia: And because that person taught you the rules to play, but not the rules to win, you lost and you lost and you lost until you figured out how to prevent your opponent from getting three in a row, and then nobody won. So then you went and showed somebody else, and you taught them the rules to play, but you didn’t teach them the rules to win. Our process teaches you the rules to win the financial game.

Tim: And it’s funny because, you know, those financial institutions are the ones who are advertising, who are luring us in with all of those offers and giving us the information to make our financial decisions. So it makes sense that they’re winning right now, right? And you know they’re winning because a lot of times you’ll feel stuck, frustrated, unable to do the things that you want to do even though you earn a great income. And that’s how you know it’s not how much money you make, it’s how much money you’re keeping at the end of the day that’s really going to make an impact on what you’re able to achieve in this life and the impact that you’re able to have.

Olivia: And you see, conventional wisdom teaches us that we need to focus on getting a higher rate of return on our savings and investments. But here’s the problemโ€”those products that we own are just that: products. Nobody’s showing us how to utilize those products to make our financial life better. And that’s the problem. If we only focus on getting a higher rate of return, and we completely ignore opportunity cost, taxes, and interest on debt, our total circle of wealth can grow, but these problems are going to grow as well.

Tim: So the best analogy that we make to differentiate our process from others is the fact that other advisors are focusing on getting a higher rate of return and selling you the best productโ€”we’ll call them the golf clubs. Our approach is to focus on how you’re using those productsโ€”we’ll call that the golf swing. And if you wanted to get better in golf, there are two approaches: you can go out and buy the best clubs, and by virtue of that, you’ll be the best golfer, or you can figure out a way to improve your golf swing. And that’s what we do. We take you down to the practice range, find out how you’re using your money, and then make adjustments to make your money more efficient.

Tim: Here’s a great example of how we help our clients make their money more efficient. We’re going to use an example of a family earning $102,000 per year and they’re saving $6,000 per year, and they’re getting 6% on their savings. Now, it would be a fair estimate to say that up to this point in their lives before they met us, 100% of their financial planning focus was on getting a higher rate of return on this amount of money every year.

Tim: So, if they’re putting away $6,000 and earning 6%, they’re earning $360 per year of interest on their annual savings. And if they increase their rate of return by 50%, they now earn $540. And here’s the question: is that really moving the needle for them? They just increased their rate of return by 50%, and it didn’t necessarily move the needle for them financially.

Olivia: Well, they increased their rate of return, but they also increased the risk that they were taking in order to get that rate of return.

Tim: Exactly. So it comes down to, was it worth it for less than $200? So the question becomes, how can we increase the amount of savings or the amount of interest earned on your savings without taking on additional risk? And our approach is to focus on the $96,000 of expenses. And we’re not talking about, you know, stop going out for dinner three nights a week and only go out two nights a week, and you’ll save $100 a week. No, we’re talking about, how can we reduce your expenses without reducing your lifestyle? I want to repeat that: how can we reduce your expenses without reducing your lifestyle?

Olivia: That’s where we focus on the wealth transfers, because the wealth transfers are already baked into your cash flow cake. So here’s the benefit of reducing your expenses without reducing your lifestyle: if we reduce your expenses by 1%, that’s $960, and that is the equivalent of earning 16% on your $6,000 of savings. That’s how you move the needle.

Tim: Now, here’s the thing: we’ve all been told that the higher the risk, the higher the what?

Olivia: The higher the return.

Tim: That’s right, the return. Well, have we ever taken risk and not gotten a return?

Olivia: Unfortunately, yes.

Tim: But here’s the dealโ€”how much risk do you have to take to stop an expense?

Olivia: Zero.

Tim: All you have to do is stop doing it. What does it cost to stop an expense? It doesn’t cost anything. So that’s how you win this financial game, and this is how we help our clients make their money more efficient: reducing their expenses without reducing their lifestyle.

Olivia: You see, we can prove that this works because 16% of $6,000 is $960. So that’s what makes us different, and that’s how we help our clients.

Tim: Now, if you had a bucket that had holes in itโ€”things like debt, opportunity costs, taxes, interestโ€”and you had a faucet trying to fill up that bucket, how long would it take to fill up your bucket?

Olivia: Well, it would never be full because all of the money would continue to leak out.

Tim: Exactly. So when it comes to filling up your leaky bucket, there are two methods: number one, turn up the water pressure, and you know, eventually maybe it’ll overflow. It’ll continue to leak, but as long as you keep that water flowing, you’ll be fine. But the second method is to plug the holes in your leaky bucket, and then that bucket is going to fill up even if you only have a trickle.

Olivia: And here’s the point: conventional wisdom tells us that we should save more into that leaky bucket. It doesn’t make sense. Why try to increase the flow? You should never increase the flow unless and until you plug the holes.

Tim: So our first step will be to see if we can find areas where you may be more efficient without the need to reduce your current lifestyle.

Olivia: Now here’s the question: on a scale of 1 to 10, how does what we do meet with what you’re looking for from an advisor?

Tim: If you’d like to learn more about how we put this solution to work for our clients, we’d be happy to take a look at your situation. Visit our website today at Tier1Capital.com and schedule your free strategy session. We look forward to speaking with you soon.

The AI Blueprint for Business Owners: Brad Costanzoโ€™s Proven Strategies

Episode Summary

In this episode of the “Control Your Cash” podcast, hosts Olivia Kirk and Tim Yurek welcome Brad Costanzo, the founder of Accelerated Intelligence A.I. Brad is an AI and business innovation consultant who helps organizations leverage the power of artificial intelligence to drive business growth through innovative strategies. Throughout the episode, Brad shares his insights on the rapid evolution of AI and how it can transform business processes to increase productivity, creativity, and profitability. He discusses the anxiety that comes with trying to keep up with constant technological advancements and provides practical advice on how to strategically implement AI in business operations without becoming overwhelmed. Brad also introduces his “Five Bucket Framework” for AI integration, covering thinking, creating, communicating, analyzing, and automating, and shares actionable tips for both tech novices and experienced users to maximize AIโ€™s potential in their work.

Guest Info

Brad Costanzo is the founder of Accelerated Intelligence A.I., a leading consultancy that specializes in integrating artificial intelligence into business strategies for enhanced growth, productivity, and profitability. With a deep expertise in harnessing AI, Brad has distinguished himself as a pioneer in using innovative technologies to drive business success. His work focuses on empowering organizations to leverage AI for creating powerful content, automating processes, and optimizing communication strategies. Through his hands-on approach, Brad provides tailored solutions that not only streamline operations but also deliver measurable results, making him a trusted advisor for businesses looking to stay ahead in the rapidly evolving tech landscape.

You can send him an email at [email protected]

Key Takeaways

  1. Understanding AI Integration:ย Brad emphasizes the importance of focusing on the most impactful and easy-to-implement AI projects, avoiding the trap of trying to master every new technology.
  2. The Five Bucket Framework:ย AI can be categorized into five primary functions: thinking, creating, communicating, analyzing, and automating. Businesses should identify where they spend the most time and money and consider how AI can optimize these areas.
  3. Practical AI Application:ย Brad suggests using AI as a mentor, assistant, and critic to enhance productivity and creativity. He provides examples of how AI can automate content creation, analyze data, and improve customer communication.
  4. Simplifying AI for Business Use:ย Brad’s approach is designed to help businesses start small with AI and gradually expand their capabilities without feeling overwhelmed, ensuring a more sustainable and effective adoption of AI technologies.

Transcript

Olivia:
Hello and welcome to the Control Your Cash podcast. I’m your host, Olivia Kirk.

Tim:
And I’m your co-host, Tim Yurek. Today we have a great show in store for you.

Olivia:
We have with us Brad Costanzo. Brad, thank you so much for joining us.

Brad:
Thanks for having me. It’s exciting to be here.

Tim:
Brad is a really interesting guy. We worked with him recently. Brad is the founder of Accelerated Intelligence A.I. and an AI and business innovation consultant who empowers organizations to harness and transform the power of artificial intelligence. With a deep commitment to driving business growth through innovative strategies, Brad has distinguished himself as a leader in integrating AI with business processes to enhance productivity, creativity, and profitability. So we have a great show in store for you, and Brad, again, it’s great to have you.

Brad:
Yeah, it’s great to be here, and those are just fancy words to say I use tech to do my work for me and show other people how to do it, which is how we linked up. So yeah, itโ€™s been fun working with you guys. Itโ€™s a really interesting field, and itโ€™s changing all the time. Itโ€™s never a dull moment. Thatโ€™s actually one of the problemsโ€”itโ€™s never a dull moment. I’m like, slow down, let me catch my breath, but itโ€™s fine.

Tim:
Well, just to add on to that, itโ€™s amazing to me, Brad, to see some of the developments that have occurred from the very brief time we started to the time we actually implemented certain concepts. It was mind-blowing to me how quickly the technology has changed and moved forward. Itโ€™s amazing.

Brad:
Yeah, it feels like I put my head down for a week to work on a project, and I pick my head up, and somebody’s already solved that project with another piece of software. You push a button, and itโ€™s done. That partโ€™s frustrating, but itโ€™s also great because the innovation is happening so quickly. Thatโ€™s both a really good thing and a really bad thing because it can create this level of anxiousness and anxiety, especially if youโ€™re a professional or a business owner trying to stay on top of this and adopt it. But it can be happening so quickly.

Brad:
I like to say that AI, in general, is the new shiny object, but itโ€™s the one you canโ€™t afford to ignore because itโ€™s coming, and youโ€™ve got to find a way to wrap your head around how to use it. That anxiousness and anxiety can come in when youโ€™re trying to stay on top of all the new things. I think thatโ€™s what I try to tell my clients, and Iโ€™ve had to do this myself: donโ€™t pay attention to all the most edgy cases, like the newest thing today, the newest thing tomorrow. Give it a little time to mature. Stick with the base areas. We can talk a lot about how to find that, but in the beginning, it was like a full-blown sprint out of the gate. Everybodyโ€™s running, running, running, and then you find yourself getting tired like, oh my God, now I really canโ€™t keep up with all of this.

Brad:
Thereโ€™s a concept we can talk about called diminishing marginal utility of artificial intelligence. I donโ€™t knowโ€”have we ever talked about that in our private sessions?

Tim:
No, tell us more.

Brad:
This is just aโ€”you know, I was thinking about this before because there are so many things AI can do. I can help you with this and thatโ€”everything from coming up with great plans to creating all your content and books and chatbots. There are thousands of things it can do. But as a business owner, professional, or executive, there are only so many things that actually need to happen to move the needle in your business and life. You want to attract more people to your business, convert those into customers or clients, retain them, and give them a better service experience. Yes, AI can create 30-second really cool video clips that would take somebody elseโ€”but are those going to move the needle in your business? Probably not. I can create really cool little designs in Midjourney and do all this other stuff, and I can create cartoons and graphics. But if thatโ€™s not part of my business, learning how to do every little thing on those edge cases that it can doโ€”Iโ€™m not going to have any use case for it. The more you try to utilize AI in every aspect of your business, the more you realize that, wait a minute, these arenโ€™t needle movers. So thatโ€™s that diminishing utility of trying to stay on top of every single innovation.

Brad:
I also say this from the lens ofโ€”I am not a technologist, Iโ€™m not a computer programmer, Iโ€™m not an engineer. I am a serial entrepreneur and growth consultant, and thatโ€™s what I look for. I look for whatโ€™s going to make a difference in my and my clientโ€™s business. Will it help me attract, convert, or retain customers and clients? Will it make me more revenue or profit because itโ€™s reducing expenses? Will it free up my time to do other things? Will it unleash creative pursuits? If it doesnโ€™t do those things, I try to filter those out and say, okay, whatโ€™s the handful of things that are going to really, really help, and then ignore the rest for a while. When Iโ€™ve told other clients and people this, it gives them relief that, okay, maybe I donโ€™t have to stay on top of every single new innovation out there. Itโ€™s good to pay attention to whatโ€™s possible, but trying to master all that stuffโ€”itโ€™s really not necessary. I like to go in and say, whatโ€™s nice to have, whatโ€™s need to have, what do we do now, next, and never? Does that make sense?

Tim:
Well, based on what you just said, right? Iโ€™m going through in my mind, okay, talking about our journey together. We did our initial call, and you basically gathered a bunch of information as to what we were looking to help us move our needle, right? Then you came back and addressed most of those issues, if not all of them, and you prioritized which ones we should implement exactly, and basically almost in the order that was of most importance and most value, right?

Brad:
Exactly, exactly. I think of this as on a level ofโ€”I call this like ICE: whatโ€™s the level of impact itโ€™ll have, whatโ€™s your confidence in that impact, and how easy is it going to be? I like to go after the high-impact, easy projects first. I kind of score them like that. If thereโ€™s aโ€”think about itโ€”you and I do this oftentimes: create a spreadsheet and go on a scale from 1 to 10. Here are 10 projects. If this works, what impact will it have on my business? Letโ€™s say it creates a whole new channel of communicationโ€”like, thatโ€™s great, this was a problem before, itโ€™s no longer a problem. We were spending $10,000 a month for this; now weโ€™ll spend $100 a monthโ€”thatโ€™s a high impact. Now, whatโ€™s our level of confidence? Well, if weโ€™ve done it before or if thereโ€™s a computer program out there thatโ€™ll do it for us with a few clicks, Iโ€™ve got a pretty high confidence that itโ€™ll work and have that impact. And then once more, the ease, which is the opposite of effort, on a scale of 1 to 10, is this something we have to develop a whole newโ€”like hire full-stack engineers to come in and develop a custom software for, and it costs $50,000? Well, that may be a very like a 2 on the scale of 1 to 10 of ease, but if itโ€™s sign up for this program, install it, start using it tomorrow, $100 a monthโ€”thatโ€™s a 10. That means itโ€™s super easy and effortless to do. And then if you just take all of the various ideasโ€”and Iโ€™d love to talk to youโ€”youโ€™ve heard me talk about the five-bucket framework, I thinkโ€”weโ€™ll talk about that. Thatโ€™s how you find these ideas. Letโ€™s say Iโ€™ve got 10 of them. Score them all: impact, confidence, and ease, scale of 1 to 10, average them out, sort them by the highest number, and then just start knocking off projects like that.

Tim:
I mean, that makes perfect sense, right? Especially when youโ€™re looking to move the needle the most with the least amount of effort. But tell us more about that five-bucket framework because thatโ€™s pretty cool.

Brad:
Yeah, so in working with a lot of clients and facing these problems, one of the first things to overcome is what I call “toolphoria.” Look at all these toolsโ€”this is exciting! You get euphoric over it, but then euphoria turns to anxiety. So I just took a step back and zoomed out and was like, okay, step one of what is necessary for somebody like a business owner to employ AI into their business is you have to know whatโ€™s possible. You justโ€”the wide breadth of everything thatโ€™s possible. And then the next step is to know what are the projects I should do. So I group theseโ€”instead of looking at what departments AI will help you with, like hereโ€™s how AI can help you in sales and marketing, hereโ€™s how it can help you in finance and executive, etc., I just put them into buckets. I said, AI only helps you innovate in five different areas. The first one is thinking. Iโ€™ll actually justโ€”Iโ€™ll rattle them off real quick, and then Iโ€™ll go deeper. So thinking, creating, communicating, analyzing, and automating. Everything that it does will fall into those. Iโ€™ll go into a little more detail here.

Brad:
So in the thinking bucket, this is all the stuff as a business owner that never reaches the rest of the world. This is internalโ€”like you guys own the business together. So this is, hey, let me brainstorm ideas for a book, let me brainstorm ideas for a marketing campaign, let me think through potential content ideas that we may be able to do for our social media marketing. Let meโ€”I like doing this with some of my clients, where weโ€™ll create a virtual board member for their company. So weโ€™ll create a custom ChatGPT with background information on themโ€”like, this is the company, who they are, their background, their services, their products, their prices, their target market and audience. Itโ€™ll know a little bit about a lot of aspects of them, and then itโ€™ll know about their constraints, etc. Now we build this virtual board member, so when you have a problem, you go to it, and itโ€™s been instructed to be a business strategist. You say, okay, Iโ€™ve got a new opportunity here. Hereโ€™s a new product or service that we want to roll out to this audience. What are the pros and cons? Help me do a SWOT analysis or any strategic thinking. Well, if itโ€™s got the background and the context and your constraints and goals, etc., it can give you really amazing advice that you might not have gotten, and it can do it for free. It can help you think through problems. You might say, hereโ€™s an issue weโ€™re having with a supplier or a client or a contractor. What do you think we should do? Weโ€™re thinking about pivoting. Is there another route? One of the things that AI does amazingly well is it connects dots that you might not have thought of. You can sit around in a brainstorming session, but sometimes you just go over there. It may spit out terrible ideas, but every once in a while, itโ€™s going to spit out some really, really good ones, and itโ€™s getting better and better. Thatโ€™s thinking.

Brad:
One of the exercises I like doing is creating a perfect avatarโ€”a perfect client avatar or buyer persona. You put in who you are and what you sell, and then you have it say, help me think of different clients and customersโ€”demographics, psychographics, things that likeโ€”hereโ€™s who I usually target, but who else might I go after that could use my products and services? And it might just say, well, have youโ€”you know, I know that youโ€™re typically working with C-suite executives and busy professionals, etc., but single moms who are also small business owners would also benefit from this because of X, Y, and Z. Youโ€™re like, you know, I never would have thought about that. So it helps you think.

Brad:
The next side is creation. So in the creating bucket, this is all the stuff that goes out to the world. It helps you do content marketing, sales copy, and creating books. I know youโ€™re working on a book. It helps you create videos and audios. You can do an entire podcast without ever showing up by training a tool calledโ€”thereโ€™s many of these, but one of my favorites is called 11 Labs. You train it on your voice, and then you type in what you want it to say, and it creates a podcast for you. Or you have ChatGPT create a script of a podcast in your voice, and then you drop it into 11 Labs, and it automatically creates one without you ever having to think about it or pull out a microphone. It can also take a podcast or a YouTube show and create derivative content from that, which means everything from show notes to clips and social media posts and all that. This is where 90% of the people are playing inโ€”theyโ€™re thinking and creating, like, help me create a thinkโ€”help me think through an email campaign for my newsletter, and then now write the newsletter for me. Cool.

Brad:
The other three buckets are really exciting because theyโ€™re overlooked. Theyโ€™re a little bit more technical in nature, but not overly. One of them is the communicating bucket. Thatโ€™s where we can communicate with chatbots and voice bots. There are voice bots right now that sound exactly like me. Theyโ€™re scary accurate. I think itโ€™s something like 30 to 40% of people right now cannot tell the difference between the voice bot and a human. It can answer questions, set appointments, and do a lot. But then how else do you use communication in business? Well, you can communicate with leads, prospects, and give them frequently asked questions about your business. They want to know more about it. It can set appointments for you automatically, integrate it, and say, well, it sounds like youโ€™d be a good fit for our program here at Tier 1 Capital. Would you like to set an appointment? It says yes, and the chatbot or voice bot says, great, Iโ€™ve got times tomorrow or the next day at 3:00. Which sounds best? And if they say 3:00, it automatically sends them a calendar invite, and it integrates with yours. So it can set appointments now. It can also help with customer service. This is huge. If youโ€™ve got a big company, a lot of customer service reps working with people answering questions, they can go in and tell them things they need to know about their account or just in general. You can also communicate with employees, stakeholders, and investors in your business by creating a chatbot thatโ€™s knowledge-based and understands company policies, etc. So instead of having to open up a big old handbook, you just go in there and talk to the bot.

Brad:
The other two are analyzing. Itโ€™s great at analyzing data, and itโ€™s also great at analyzing text, so qualitative and quantitative. If youโ€™re trying toโ€”Iโ€™ve built a bot on ChatGPT where I can take a screenshot of a stock chart and have it go in and give me a technical analysis based on what it sees as the patterns. It can say, well, this is creating an ascending triangle pattern or whatever. It can say, hereโ€™s your short-, medium-, and long-term bullish and bearish indicators. I can upload a spreadsheet and say, create charts of this, tell me what my clients’ trends are. But I can also upload, letโ€™s say, two pieces ofโ€”one of the things I love doing with clients who have a sales team is I take their top sales performers, and I take three or four of their transcripts of sales calls, and I take their bottom or their new salespeople who arenโ€™t doing as well, and I say, analyze these sales scripts, look at the sentiment analysis, look for patterns. How are the A players answering objections where the C players arenโ€™t? Then create a corrective course of action for that. So thatโ€™s both qualitative and quantitative analysis.

Brad:
The last bucket is automating. Now, that is kind of, to me, thatโ€™s the big bucket where if you can get this software to talk to this software, to talk to this software, and you add AI behind the scenesโ€”hereโ€™s a little sample I did where Iโ€™ve got a little Google sheet where I keep some of my favorite quotes. If I see a quote or if I think of a quote, I can just write it, type it in my Google sheet, and behind the scenes, Iโ€™ve got a program called Zapier going in and saying every time I enter a new quote, take this quote over to ChatGPT behind the scenes and use a prompt that I createdโ€”a set of instructions that creates a 300-word really engaging, profound, sometimes funny social media post, and then post it to my Facebook and Instagram. So behind the scenes, it just triggers all these actions to happen.

Brad:
To summarize, itโ€™s creating, thinking, communicating, analyzing, and automating. What you as a business owner just have to do is think, go to each one of those buckets and go, where am I spending the most time and money? Write those down, and then ask what would happen if I was able to automate these or use AI to do this for me. Thereโ€™s a good chance you can do that. But to me, thatโ€™s how you find the projects you should be working on, and then look at the level of impact. Iโ€™ve been kind of soapboxing this whole time, so Iโ€™ll let you kind of ask any questions about those.

Olivia:
Yeah, no, that makes a lot of sense. In working together with those specifically, like the bots and the chatbots and the voice bots, theyโ€™re really cool and really engaging. As people become more comfortable with interacting with the AI, as it becomes more popular, theyโ€™ll definitely be showing up more. Itโ€™s cool how youโ€™re able to upload your content, give it a knowledge base to work off of, and then also give it a voice. Itโ€™s pretty awesome.

Brad:
Yeah, it really is. Itโ€™s one of those things where a lot of people are thinking about bots, and they should be thinking about it like, should I use them or shouldnโ€™t I? There are some businesses where you probably donโ€™t want to use it because the human touch is way better, especially if you donโ€™t have a high degree of volume. If youโ€™ve got a huge degree of volume, and the problem youโ€™re trying to solve is that, you know, weโ€™re only open eight hours a day, or weโ€™ve got so many people and weโ€™ve got a high hold volume, thatโ€™s when it starts to make sense to use them more. But also, I donโ€™t think it is going fromโ€”itโ€™s not human or bot. Weโ€™re already using bots in call centers. Like, thereโ€™s a call treeโ€”every one of us has dealt with it. You call an airline, press 1 for English, press 2 for Spanish. Would you like to make a flight? Press 1. Would you like to check on your baggage? Press 2. Until they wonโ€™t let you go forward.

Olivia:
I know, and itโ€™s frustrating.

Brad:
It is, but weโ€™re all used to dealing with that, and those are better than getting no answer and saying, well, weโ€™re putting you on hold. But just imagine now that you can talk to a bot that says, listen, what do you need? I can understand English, or Spanish, or whatever language you speak. I can automatically understand it, and then it can answer questions, give you answers really specifically when you need themโ€”24/7, consistently. What these tools allow you to do, especially the voice bots, is if you get in trouble or it senses that youโ€™re not getting the answer, it says, hold on, would you like me to transfer you to a human agent if theyโ€™re available? If you say yes, it transfers you to a human agent, and that human agent gets to see a transcript of everything that you were asking. Itโ€™s justโ€”itโ€™s like the next level up. Depending on the type of company you are, there are some tremendously powerful chatbots and voice bots that can be put into place. But yeah, you have to think, will this help my business or hurt my business? I tell people, donโ€™t just automate it just to automate itโ€”make sure itโ€™s actually solving a problem.

Tim:
Yeah, for sure. Especially, you know, I could see it coming into playโ€”what was coming to mind was rightโ€”what I want this to be in the world is we were trying to, like, at home, we were trying to find a part to fix a leak in a water heater, right? Like, why canโ€™t we just put in the part, like, you know, take a picture of the water heater, and you could tell me which piece this is at Home Depot instead of having to go all the way through everything, right?

Brad:
What size? Did you actually do that?

Olivia:
No, becauseโ€”

Brad:
Well, a lot of times that works. I did see on Home Depot they have a lensโ€”

Olivia:
Like Google Lens? Iโ€™m like, did you try this?

Brad:
Yeah, well, even on ChatGPT, Google Gemini, but like all of them basically, but letโ€™s just say ChatGPT, which most people are now at least a little familiar with. You can upload a photo of something and, A, say what is this? But, B, you can say, like, letโ€™s say somethingโ€™s broken. You can upload a photo, and sometimes you circle it, or you just describe whatโ€™s broken, and you say, how do I fix this, or whatโ€™s the part needed for this? Like, itโ€™s mind-blowingly effective. Like, every single dayโ€”I work in this stuff, but every single day Iโ€™m blown away. Iโ€™m like, I cannot believe it just did that.

Tim:
Check that out, Brad. I havenโ€™t used that feature yet.

Brad:
No, yeah, itโ€™s so fun. Iโ€™m trying to think of other things that Iโ€™ve used that for, but yeah, it is famously effective for uploading images and saying, tell me what this is. People are even taking an image, like a screenshot of a computer program they use. Like, letโ€™s just think of aโ€”Trello is a famous project management interface, and itโ€™s very easyโ€”itโ€™s a kanban board, and you can take a photo or an image of a screenshot of your dashboard if you use it, and then you can take that over to ChatGPT and say, I want to create a code, like software code, that will be a project management system, etc., and I want it to have the exact same user experience and layout as what you see here. Please create the code for me, and it, nine times out of ten, it will do it. So itโ€™ll take a screenshot of that and itโ€™ll write the code to create it. Once more, the amount of time and money that saves.

Brad:
I just createdโ€”speaking of code, Iโ€™m not a coder, but I just created code the other day. I had an idea for a little Chrome browser extension, and I was like, you know, my ideaโ€”so Iโ€™m an investor in Bitcoin, right? And I was interested to see ifโ€”I thought, wouldnโ€™t it be cool if I went to a website and instead of prices in dollars, I could push a little button in my Chrome browser, and it would automatically change all the dollarsโ€”like, if something costs $500 that Iโ€™m looking at, I could push a button, and it would change it to, you know, how much Bitcoin would that be? Like, how many Satoshis, which is the unit, the smaller unit of Bitcoin. I just had an idea like, that would be cool to push a button, and it turns all my US dollar prices into Bitcoin. And I said, I went over to ChatGPT, and I said, hereโ€™s what I want to do. I have no idea how to do this. Iโ€™m a complete idiot when it comes to coding. Please walk me through this and help me flesh it out, and it did. And in about 30 minutesโ€”well, first of all, in about three minutes, I had the code. Then I kept on getting errors when I tried to install it. What did you do with it? So I would take screenshots of the errors, and I was like, oh, now I know what to fix. And it says, here, I just fixed it. Do this. It took me about 20 or 30 minutes, but I now have a working Chrome extension that will switch things over to Bitcoin prices on my web, and I did no thinking except for, hereโ€™s what I want, and then I just used it as my coder. So itโ€™s really amazing.

Brad:
By the way, I know Iโ€™ve mentioned this to you in our one-on-one sessions, but there are two mental frameworks or models that I use all the time to remind myself how to get the best out of this. I call it the MAC model, which is: itโ€™s your mentor, itโ€™s your assistant, and then itโ€™s your critic. A lot of people just think of it as an assistant. They go to ChatGPT, and they say, do this, and then they get results they donโ€™t like. Theyโ€™re like, well, wait a minute, maybe it was garbage in, garbage out. So remember, I donโ€™t know how to do this. Like, I want to create code for this Chrome plugin. Well, I treated it as my mentor. I said, ChatGPT, hereโ€™s what I want to do. Iโ€™m dumb. Walk me through this. Explain it like Iโ€™m dumb, and teach me how to do it, and it did. It says, well, hereโ€™s exactly what you would do. Then I had it be my assistant, and I said, now create the actual code base, and it did. Then I said, well, now I have to critique it, or in this case, troubleshoot itโ€”whatโ€™s wrong? But most people will sit down with ChatGPT and not know what to do, and they donโ€™t thinkโ€”ask ChatGPT, how do I use you? You tell me. Help me help you, Jerry. Itโ€™s one of those things thatโ€”itโ€™s a really great reminder that you donโ€™t have to know because it knows, and it knows how to use itself better than you do.

Tim:
Right. It reminds me of going to my wife and saying, honey, I donโ€™t know why youโ€™re upset. Please help me help you. What is it you want from me? I see youโ€™re crying, and I donโ€™t know why.

Brad:
Right. Before I just jump in and try to fix this problem, what problem do you want it fixed, anyway?

Brad:
But then the other little framework isโ€”Iโ€™m the Hollywood director. So I set the scene. ChatGPT or whatever AI is your actor. I may say, write an article about the benefits of infinite banking, and it writes one, and I go, wait a minute, hold on, cut! Way too complex. Too much jargon. I need you to explain this so that a sixth grader could understand it. Add in some examples and add in some humor. Itโ€™s like, okay, go, action! And it does it. And Iโ€™m like, nope, cut. All right, let me give you more background. Hereโ€™s what Iโ€™m trying to do, right? And I just think of myself as being the guy in the directorโ€™s chair, and the AI is my actor that never goes on strike. That gives you the permission to keep on using it to make itself betterโ€”like, nope, make it better. Nope, make it better. But a good director, a good Hollywood director, doesnโ€™t say, cut, didnโ€™t like it, or they donโ€™t say, cut, didnโ€™t like it, do it again. The actor would be like, well, what didnโ€™t you like? You have to direct me, right? You have to guide me. You donโ€™t just say yes or no. Actually give me guidance. You know, I think of this as like the difference between the art and science of AI. The science is create a well-constructed prompt or instructions. The art of it is sculpting it to get what you want. Analyze my writing so you can write like me. We did that with you guys. Add in more of this, take out this, hereโ€™s what I like, hereโ€™s what I donโ€™t like. How could you make it better? Maybe write like this author, sound like this. That is what makes the difference between getting okay content from this and getting world-class content from things like AI.

Brad:
Once you kind of reallyโ€”I love the term grok, right? To grok somethingโ€”for those who donโ€™t know, it means to really get it, like boom! Like, the minute somebody groks infinite banking, right? In the beginning, someoneโ€™s like hearing about it, and theyโ€™re like, okay, insurance policies and cash flow and barโ€”okay, I kind of get it, but I donโ€™t know if I get it. And then the minute it clicks, like, thatโ€™s grokkingโ€”like, oh, boom, now, okay, now I get it, I know how to use it, I know what to do. Same thing with AIโ€”like, all right, I understand the frameworks, I understand how to talk to it, I understand what it can and canโ€™t do, and then I know the tricks to get it to do what I want it to. That is where the learning curve becomes insanely steep, so after a little bit of time, you become incredibly capable.

Tim:
Exactly, and one of the best things we learned in our time with you was how to build the custom GPTs to have their own personality, their own knowledge base, so that youโ€™re able to prompt them to do what you want them to do without having to tell them how to do it every single time.

Brad:
Exactly. One of the things Iโ€™m working on right now with another private client isโ€”theyโ€™re a hard money lender for real estate loans, and they do a lot of volume. He says, you know, we need a newsletter email drip campaign. We just need to stay in front of these people twice a week, every single week. Can you help me? I was like, yeah, let me create a custom GPT that will write 104โ€”two emails a weekโ€”emails for you that are original, well-written, valuable, informative, but also with the desire to help build your credibility, brand awareness, answer questions, and just stay on top of this. So behind the scenes, a custom GPT, which you just mentioned for anybody listening or watching who doesnโ€™t know what that isโ€”thatโ€™s like a knowledge base and a little set of instructions for ChatGPT behind the scenes. You only have to build it once, and then you get to use it. What I did is I just took a bunch of information on themโ€”who they are, what do they sell, you know, about the company and about the writer. Then I said, analyze his style, and I said, this is who they are, this is how they write, and these areโ€”I loaded up a bunch of testimonials and case studies, and we just created this knowledge base about the company. Then I had it come up with, like, 104 different email subject lines, tried to make them as original as possible, and then I put that behind the scenes as well. So now it knew, and then now I built this for them so that they can just go in and have it write exactly like them. They were able to write about 104 emails inโ€”you know, over the course of an hour or so. You just have to wait for it to actually print out. You copy those, put them into a Google Doc, and then now you just have a human come through and do the final touching, like, okay, I like this, donโ€™t like this, letโ€™s do some minor editing.

Tim:
Those custom botsโ€”those are really amazingly useful. To have to hire a good copywriter to write 104 valuable emails for a yearโ€”I mean, itโ€™s going to take themโ€”I could have done it, it would have taken me easily a month, and I probably would have charged them $25,000 to do so. So it saves a lot of time, a lot of money, and thatโ€™s just one of the many powers of this stuff. But Iโ€™m glad you like the bots because, yeah, they can be really, really useful.

Olivia:
Well, you know, Brad, as you were discussing this, what immediately came to mind is, with limited knowledge of AI, for us to learn the system without the hacks that you provided us and the shortcuts that you helped us with, our minds would have been completely blown trying to figure this out on our own. Your knowledge of AI and the system is reallyโ€”thereโ€™s always going to be a need for somebody like you to simplify it for somebody like us who knows that the technology is out there, doesnโ€™t know where to start, and to invest the timeโ€”not so much the moneyโ€”but the time to figure it out is just not a real efficient way to allocate that time.

Brad:
Yeah, thanks for saying that. Itโ€™s alsoโ€”if youโ€™re stumbling around, itโ€™s really easy. Especially, I mean, youโ€™re not sitting around retired with nothing to do on your hands. Itโ€™d be one thing if thatโ€™s all you had to do, but youโ€™re running a business and youโ€™re trying to do the other stuff. Yeah, it might be fun to tinker over here, but then you realize you just go down this rabbit trail, and youโ€™re like, what am I doing? Iโ€™ve got other things I have to do. Trial and error is not a great way to do it. The way I learned, and you know, kind of my background in this really came from necessity and fear. So the necessity part, you know, Iโ€™ve been a growth and marketing consultant for a very long time. After I sold my last business, thatโ€™s what I really focused onโ€”helping other businesses create everything from marketing plans and growth strategies for their business. One of my clients was a marketing agency, and I was kind of serving as a strategist both for them to grow their agency, but I was also working with their clients as an external consultant to help make sure that the strategies they were doingโ€”and you know, thereโ€™s a lot of marketing work that goes on behind the scenes. Iโ€™ve been using AI tools for four or five years in one shape or another before they were ubiquitous. Then in November a couple of years ago, ChatGPT and OpenAI came out, and they just kind of dropped the microphone and showcased what was possible. The necessity part came with me going, okay, Iโ€™ve got a lot of work to do here. Letโ€™s just see if I can do it quickly. AI allowed me to do the work I had to do anyway a lot quicker. But then the other piece was fear because I was taking something that would take me, no joke, two to four weeks to do, of real heavy mental bandwidth, and I would often charge about $25,000 to do a big strategic marketing plan. In the first month or so of OpenAI coming out with ChatGPT, I was able to do two to four weeksโ€™ worth of work in two hours, and it was just as good, if not better, in some cases. I remember where I was sitting, right here, and I remember where I was thinking, Iโ€™ve just obsoleted myself. That old saying is, if you and a friend are outrunning a bear in the woods, you only have to outrun your friend, right? Iโ€™m looking at this as a marketing and growth strategist, etc., and Iโ€™m thinking, I have to outrun everybody else whoโ€™s starting to learn this because if I donโ€™t, my skill sets that I have are going to be obsolete really, really quickly, or the price is going to have to come way down, and I donโ€™t want to do the same amount of work for one-tenth of the price. Therefore, let me start to learn this because I have to. Thereโ€™s another saying in this space that AI is not going to take your job. People using AI will take your job, and that couldnโ€™t be more true. So I had to use it, and then as I felt that fear-based necessity in order to put it to work, I was getting tremendous results, and then that led to word-of-mouth referrals, people saying, hey, Brad, can you do this for us? Then I would either do it for them, but I would also teach them. I kind of have a knack for teaching this stuff and simplifying it down because I need to simplify it for myself to understand it, as I said, Iโ€™m not a tech. So one thing led to another, but yeah, fear and necessity led to me figuring this out. The vast experience I have, not only as a consultant but as an entrepreneur, has allowed me to go, okay, well, I know what CEOs and entrepreneurs need, and I also know what is overwhelming. Keep the overwhelming stuff out, know whatโ€™s possible, be good enough to be dangerous, and then know how to find the people who can do it for you.

Olivia:
Yeah, and to me, thatโ€™s the real rub. So tell us a few tricks for a tech newbie to really take advantage of this, hit the ground running, and then weโ€™ll talk aboutโ€”I know you have a book and some knowledge that you could share with the community.

Brad:
Yeah, for sure. So for a tech newbie, start with ChatGPT. You can get a free account. I always recommend the higher-paid ones, but if youโ€™re just starting, just play with ChatGPT. If nothing else, yes, there are other tools like Claude, Gemini, Perplexity.aiโ€”these are a lot of chatbots. They do similar stuff. Just jump into ChatGPT, and if you do not know how to prompt, say, ChatGPTโ€”dearest ChatGPT, I donโ€™t know how to use you, but give me some ideas of how I could use you. Or even better, if you have aโ€”letโ€™s say you have a job, maybe you are the head of logistics for a corporation, right? You may go to ChatGPT and say, Iโ€™m the head of logistics for Acme Company, and Iโ€™ve never used ChatGPT before. First, give me a list of various tasks that ChatGPT might be able to help me in my job role with. Itโ€™ll give you a list, like, oh, you could do this and this and this. Awesome. Now say, create a promptโ€”because prompts are the instructionsโ€”create a prompt for every single one of those ideas that will help me become more productive and capable, and it will do it. So itโ€™s acting as your mentor. Hereโ€™s who I am, you tell me how I can use you. I donโ€™t know, and itโ€™ll tell you. Then say, now give me the prompts to use in order to get what you just told me to do, because that sounds good, but how do I do it? It will give those to you. Itโ€™s one of my favorite little techniques to open peopleโ€™s brains to go, oh, be darned, like, I never even would have thought to ask it to do that, but it just did. Then continue to let it be your mentor, and then your assistant. Then if you get something that you donโ€™t like, say, how would you make this better? A lot of people like to use this to write books. Iโ€™ve got an idea for a book. Iโ€™ve never written a book before. Can you give me a strategy to sit down and learn how to write a book? Itโ€™ll say, yes, hereโ€™s your game plan. Then I might say, all right, great, my topic is how to use AI in business. Whatโ€™s a good format for creating chapters? Can you just create them for me? Itโ€™ll create it for you. Now you can say, well, those are okay, but how could you make them better? Itโ€™ll go make them better. This is how you play with it.

Brad:
I like to say FAFOโ€”F-A-F-Oโ€”which is f*** around and find out, right? Thereโ€™s another oneโ€”FAFFโ€”F-A-F-Fโ€”F-A-F-F-I-I-O, which is f*** around and figure it out. So one of them is, findโ€”just see what it does. But then the other one is, well, let me f*** around and see if I can figure this out because now Iโ€™m going to really use it as a sounding board, and letโ€™s figure this out together. A lot of the clients that I get, I donโ€™t know how to do everything on AI, but Iโ€™m really good at the figuring it out part, and AI makes it a lot easier to do that.

Brad:
One of my other favorite tools that any newbie can use is a Chrome extension called ChatTube. You donโ€™t have to use the extensionโ€”I do, I pay the $5 a month, but thereโ€™s a free version. This allows you to go to YouTube, and it creates a little chat window, like a ChatGPT window, on your YouTube videos. If youโ€™re trying to learn something, I may pull up an hour-long lecture or video on something, and I just go to this ChatTube, and I go, summarize this. Create an outline of what I need to know. I donโ€™t want to watch your whole hour videoโ€”just give me the good stuff. Itโ€™s a great way to learn things you havenโ€™t learned. If people donโ€™t understand how infinite banking worksโ€”because I know that this is one tool in your big tool chest of that people can useโ€”I might go find a video on YouTube or ChatGPT and say, okay, I heard Tim and Olivia talking about this, but they didnโ€™t do a great job of explaining it, which I know is not true because you guys are great at this, but I could say, give me a summary. What am I missing? They can start to ask questions of it, and then once it clicks and they need more help, say, hey guys, I finally grok it, I finally get it. Can you help me out? This is great.

Brad:
So there are just a few ways to really start to play with it. Once more than anything else, I would think of the five-bucket framework: thinking, creating, communicating, analyzing, and automating. Just write down what tasks youโ€™re spending your most time on in each one of those buckets. Then you could either ask AI to help you find those, or you could call somebody like me, and I may be able to work with you to work through it. In fact, Iโ€™ve got a great freebie Iโ€™m happy to give away, which is Iโ€™ve got a perfect prompt formula or GPT. It will allow you to use a prompt that I built that helps you build better prompts. If you donโ€™t know how to prompt, it lets you build better prompts. So if you go to acceleratedintelligence.perfectprompt, youโ€™ll getโ€”Iโ€™ll send you the information on there, and itโ€™s just a really great shortcut to getting pretty good at this stuff.

Tim:
Appreciate that.

Brad:
Awesome.

Tim:
Youโ€™re a wealth of knowledge, and we appreciate you coming on today and sharing it with us and our listeners. How do people get in touch with you if they want to reach out?

Brad:
You can send me an email at [email protected]. Thatโ€™s one of the best ways to reach meโ€”just thatโ€™s my direct email. Iโ€™m happy to give you my direct phone number: 214-673-05N9. Iโ€™m not afraid to give that out for peopleโ€”just, you know, I appreciate a text instead of a phone call. If thereโ€™s a way that I can potentially help you, answer the questions, Iโ€™ve got a lot of resources. The way that I work is both with education and implementation. So on the education side, I think of this as enablement. Iโ€™ll work with groups. I just launched a 12-week AI accelerator for entrepreneurs and executives, where every single week we do a 90-minute session, and we just kind of go over things like weโ€™re talking about now. We go over all these buckets, we do workflows together in a group setting. Iโ€™ll also work with people one-on-one, much like I worked with you guys, where we do just dedicated two-hour sessions every week, typically, where weโ€™ll do implementation sprints. Weโ€™ll find out what are the things you need to do, and weโ€™ll work on them together. Sometimes, if you needโ€”sometimes itโ€™s just saying, look, go use this software, or if you need other resources that I canโ€™t provide, Iโ€™ve got a great Rolodex of resources. Then I also do corporate training. Sometimes a company will bring me in to do a one- or two-day workshop or a keynote speech, trying to really enable their people to understand how to use this and create a culture of innovation from the high level to the low level. Once in a while, customers want some custom development, new tools, chatbots, this, that, and the other, automations, and thatโ€™s something we can also help with as well. The first part, though, is just really wrapping your head around whatโ€™s possible.

Tim:
Yeah, and weโ€™ll have all that information in our show notes. I could speak firsthandโ€”Brad is great to work with and is certainly great at opening your mind as to whatโ€™s possible using AI and simplifying it in a way that itโ€™s easy to digest. Itโ€™s not like heโ€™s just prompting ChatGPT while youโ€™re on the call. Heโ€™s telling you exactly his thought process as heโ€™s going through it. Itโ€™s a great way to dip your toes in and get a lot of impact in a small amount of time.

Olivia:
Yeah, itโ€™s a wealth of knowledge and more so an incredible guide on our technology journey, for sure.

Brad:
It means the world to hear you both say that, especially after working with you. Itโ€™s fantastic. I appreciate it. Itโ€™s been a pleasure.

Tim:
Thank you so much for joining us today, and check out the show notes for the freebies and to get in contact with Brad.

Olivia:
Thanks so much, Brad.

Simplify Your Legacy with Expert Insights from Adam Zuckerman

Episode Summary

In this episode, Adam Zuckerman shares his insights on the importance of estate planning and the tools necessary to make the process easier. He discusses his journey towards creating solutions that help individuals manage their estate and end-of-life tasks efficiently. The conversation delves into the significance of preparing for asset protection, collaborating with financial advisors, and working with estate attorneys and religious organizations to ensure a smooth transition of wealth.

Guest Info

Buried In Work Website

Key Takeaways

  1. Start Early with Estate Planning:
    • Proactive Planning: Adam Zuckerman stresses the importance of initiating estate planning early in life, even as young as 18 or 19 years old. This early start ensures that your assets and final wishes are well-documented, avoiding complications later on.
    • Building a Strong Foundation: By starting early, individuals can build a comprehensive estate plan that evolves over time as their financial situation and family dynamics change. This approach allows for adjustments and refinements, leading to a more robust and resilient plan.
  2. Innovative Tools and Resources for Estate Planning:
    • Buried in Work: Adam’s company, Buried in Work, provides a suite of tools designed to simplify estate planning. These tools are geared towards streamlining the process of organizing important documents, managing digital assets, and preparing for end-of-life tasks.
    • Technology Integration: The use of technology in estate planning is a significant innovation that Adam emphasizes. These digital solutions help users keep track of their assets, legal documents, and other critical information in a centralized and easily accessible manner.
  3. Collaboration with Financial and Legal Professionals:
    • Expert Guidance: Estate planning is a complex process that often requires the expertise of financial advisors, estate attorneys, and tax professionals. Adam underscores the importance of collaborating with these professionals to ensure all aspects of the plan are legally sound and financially optimized.
    • Holistic Approach: By working with a team of experts, individuals can address not only the financial and legal aspects of estate planning but also the emotional and ethical considerations, such as how to handle family disputes and ensure that beneficiaries are well taken care of.
  4. Personalized Estate Planning Solutions:
    • Tailored Plans: Adam advocates for personalized estate planning solutions that cater to the unique needs of each individual. This includes considering family dynamics, the specific types of assets involved, and personal values and preferences.
    • Adaptability: Estate plans should be adaptable to changes in life circumstances, such as marriage, divorce, the birth of children, or significant changes in financial status. A flexible plan can be adjusted to reflect these life events, ensuring that it remains relevant and effective.
  5. End-of-Life Planning Beyond Finances:
    • Comprehensive Preparation: Estate planning is not just about distributing assets; it also involves preparing for end-of-life decisions. Adam discusses the importance of addressing issues like healthcare directives, living wills, and funeral arrangements.
    • Emotional Considerations: The emotional aspect of estate planning is often overlooked, but Adam highlights the importance of preparing your loved ones for the transition. This includes having open conversations with family members about your wishes and ensuring that they understand the rationale behind your decisions.
  6. Legacy and Wealth Transfer:
    • Preserving Wealth Across Generations: One of the key goals of estate planning is to ensure that wealth is preserved and transferred efficiently to the next generation. Adam discusses strategies for minimizing taxes and protecting assets from potential risks.
    • Creating a Lasting Impact: Beyond financial wealth, Adam encourages individuals to consider the legacy they want to leave behind. This could include charitable contributions, establishing trusts for future generations, or creating a family foundation.
  7. Personal Experience as a Catalyst for Innovation:
    • Adam’s Journey: Adam shares how his personal experiences, including challenges faced during his own familyโ€™s estate planning process, inspired him to create solutions that address the common pain points people encounter. His journey highlights the importance of empathy and understanding in developing effective estate planning tools.
    • Practical Solutions: The products and services offered by Buried in Work are grounded in real-world experiences, making them practical and user-friendly. Adam’s goal is to demystify estate planning and make it accessible to everyone, regardless of their background or financial situation.

Transcript

Olivia: “Hello and welcome to the Control Your Cash podcast. I’m your host, Olivia Kirk.”

Tim: “And I’m your co-host, Tim Yurick. Today we have with us Adam Zuckerman. Adam, thank you so much for joining us today.”

Adam: “Yeah, it’s great to be here. I think I like ‘otter’ better. That should be a new nickname.”

Olivia: “Hey, you got it, at least for the next hour. All right, let me tell you guys a little bit about Adam. As an entrepreneur, attorney, and MBA, Adam is a subject matter expert focused on the impact and implementation of future-facing technologies and the fourth industrial revolution, often at the intersection of enterprise growth and startups. With a diverse background in many industry verticals, including energy, finance, nonprofits, startups, and Fortune 500 companies, he serves as an advisor to several organizations, keynotes events around the world, and has been hired to present on the future of marketing and technology to leading global agencies. He’s also an Eisenhower fellow, adjunct professor at the University of Maryland, and has been a guest analyst on the topic of business and technology on CNBC nearly two dozen times. So again, thank you so much, Adam, for being with us. We’re excited for a great show.”

Adam: “It is great to be here. That is a bio that I haven’t heard for a very long time, but it’s a blast from the past. Glad to be here, and we’ll talk about what we’re working on today too.”

Tim: “Yeah, awesome. So, Adam, I appeared on your podcast several weeks ago, and it occurred to me that you and I have a lot of synergies in the business that we do. So I was very, very interested in the estate planning concepts that you have experienced and you have sort of perfected in my eyes. So if you could give us a sort of a background on your journey as to how you got to that point and, more importantly, some of the collateral and the products that you have designed and implemented.”

Adam: “Yeah, I’d be happy to. It’s an unexpected journey that’s taken me to where I am today. So the current role is founder of a company called ‘Buried in Work’ that helps people simplify their estate planning and end-of-life tasks, all the way from when someone’s 18, 19 years old to past when someone passes away, whenever that might be in their estate transition. I was very fortunate to be in a situation based on all the skills and roles and opportunities that I had leading up to where I am todayโ€”that’s a little bit of what Olivia mentioned in the bioโ€”to position me to build this company. And the funny thing is that I didn’t expect to make this company at all.

My father was at my house doing a bit of woodworking in the basement, and he walked up the stairs and said, ‘I’m tired.’ When he says, ‘I’m tired,’ it’s a little bit different than if Olivia or you, Tim, or I say it. When we say it, we want to take a nap; when he says it, it is an indication that he has to go to the doctor. The reason why is six and a half years prior, he was diagnosed with leukemia. I donated bone marrow to him a long time ago. He went to the doctor, and they checked him into the hospital on a Thursday, and 12 days later, he passed away far too quickly.

So, I hopped in and helped my mom transition everything on the estate. As with many people, it was a complicated and confusing situation. I took very diligent notes of everything I did. When I met with my mom’s financial planner and showed her what I had put together, she said it was the most comprehensive transition she had ever seen in her life. On one hand, I had that little devil on my shoulder saying, ‘Ah, she just doesn’t want you to move your mom’s money,’ and on the other shoulder, the angel saying, ‘Well, you’re pretty organized; maybe there’s something to this.’

She encouraged me to put it online, give the resources away, and share my learnings with others. I talked to a few friends and showed a few adults my mom’s age what I had done. The overwhelming response was, ‘Adam, you absolutely need to give this to other people.’ So, I built a website, and within a week, we had over 10,000 visits. The feedback was, ‘The information you put online is great; here’s my story, here’s what I learned; how can you help me with this?’ That last question turned into what became ‘Buried in Work,’ where we are creating resources that help people before they need it and after they need it. Itโ€™s effectively sharing information, giving the gift of organization.

Now, weโ€™ve got products like checklists, guides, and the most comprehensive estate organization system available right now, called the Estate Preparation Package. Itโ€™s designed so that if you get hit by a bus, your family will have all the information they need to deal with your incapacitation or passing awayโ€”they wonโ€™t have to search for it. We can talk about that in a bit. Weโ€™ve also got card games now to help you capture those memories from loved ones, like the ‘Nothing Left Unsaid’ card game, which helps you quickly get through questions like, ‘Do you have a will? Do you have a trust? Who helped you with it? Where are they located? How do you feel about palliative care?’

We started off helping individuals, but now weโ€™re working with businesses, service providers, attorneys, CPAs, synagogues, temples, churches, hospice companies, and nursing homes. The interest in what weโ€™re doing is quite frankly wonderful. Thatโ€™s a quick overview of where we are.”

Tim: “You know, they say that Innovation is the mother of necessity, right? So I think itโ€™s incredible that you were sort of backed into this position, and you basically became the executor of your dadโ€™s estate. All of a sudden, I think your background as an attorney probably helped you with the organizational skills for sure. But that being said, there are a lot of attorneys out there who arenโ€™t really organized as well, so it was obviously a combination of a lot of things. But at the end of the day, one of the things that attracted me to your company is the fact that this is an all-encompassing process that really doesnโ€™t seem that difficult to implement.”

Adam: “Thatโ€™s right. On average, it takes 570 hours to administer an estate in the United States, and the reason isnโ€™t that the process is extremely difficultโ€”it can be challenging if youโ€™ve never gone through it beforeโ€”but rather, the people going through it for the first time are in a time of grief, stress, and theyโ€™re on a scavenger hunt to find information. What we found is that if you organize everything in an estate, in a status, in a place thatโ€™s easy for your loved ones to findโ€”your heirs, your spouse, your executor, your administratorโ€”the effort will be the same in terms of the process, but theyโ€™ll have the tools to go through it much faster.

By doing so, weโ€™ve expanded the definition of estate planningโ€”not just having a will or a trust or giving directions on what to do with your assets or belongings when you pass away, but really positioning your entire family to have the tools and resources they need. What I mean by that is, if you have pets, whatโ€™s going to happen to them if something happens to you? Whoโ€™s going to water your plants? What bank accounts do you have, where are they located, how do you access them, how are your bills paid? On average, women outlive their male spouses by 5.8 years in the United States, and there are many millions of people about to find themselves in a situation where theyโ€™re not familiar with paying the bills. We have a solution that provides peace of mind by giving them the information they needโ€”knowing where accounts are, how to pay bills, and what needs to be done.”

Tim: “You know, that is so important. In our business, when we help families ensure the breadwinner or businesses ensure key people, thereโ€™s going to be a windfall of money coming into that estate, family, or business. A lot of times, the people left behind may not be familiar with handling money or paying bills, let alone managing a large amount of money. And it comes at a time when the key person, who the survivor relied upon to make large decisions, is no longer there. Now, at the time you need to make these big, important decisions, the key person youโ€™ve always relied upon is gone. This puts the survivor, whether itโ€™s a spouse or a child, in a very overwhelming and confusing situation.”

Adam: “Tim, youโ€™re right. Itโ€™s funny, my dad always said to my mom, ‘Donโ€™t worry, Adam will take care of it.’ And in a way, he was right, and he also knew my sisters would help out because theyโ€™re involved in some capacity. But in his mind, if you asked him, ‘Where is the receipt for when you replaced the roof 20 years ago?’ heโ€™d go to the office, second drawer down, six files back, and heโ€™d know exactly where it was. But him knowing that is very different from someone saying, ‘Oh, Adam knows the files are in the office.’ So, whereas you might think, ‘Oh, Iโ€™m totally organized,’ or ‘Oh, my child knows the key to my safe,’ it doesnโ€™t mean they actually know where things are or have the information in a way they can process. Whatโ€™s important is to step back from your perspective and, using design thinking, put yourself in the shoes of the people whoโ€™ll be impacted to see how they would react if something happened. Thatโ€™s when things get surprising.”

Olivia: “That makes a lot of sense, Adam. Itโ€™s funny because, as a young adult, you start thinking about these thingsโ€”your parents, the things youโ€™ll have to deal with. And itโ€™s funny because so many families donโ€™t talk about this stuff. Those conversations arenโ€™t being had about money, itโ€™s still not talked about at the dinner table. Are you seeing that a lot in your position, or are these people who come to you more from the older generation or the younger generation when planning?”

Adam: “Itโ€™s a pretty even split and changes depending on the week. Whatโ€™s been phenomenal is that we found when the older generation comes to us, theyโ€™re not just looking out for themselves but also thinking, ‘Hey, Iโ€™ve got children that I want to position better.’ So theyโ€™ll buy an estate preparation package and theyโ€™ll also get one for their child or for their children. And then we also have people coming to us saying, ‘Hey, hereโ€™s a life eventโ€”I just got married, I just had a child, I just got a new job, and I want to make sure that things are in order.’ And then when they see it, they go, ‘Oh wait a minute, I actually need to get this for my parents too.’ So then they buy multiple packages, sometimes they only buy one, sometimes they donโ€™t buy anything and they use our self-serve resources on the website as well.

But the neat thing is that the people coming to us often are doing so because someone they knowโ€”whether itโ€™s them directly or a family member or a friendโ€”has gone through this process and they saw how hard it is, and theyโ€™re looking for solutions. This is not something that you typically wake up on your own and go, ‘You know what, today is the day Iโ€™m going to spend going through my bills or gathering my information and writing down my family genealogy and gathering the information so all my tax returns are in the same place.’ Something happens, and with the way the demographics are going in the country right nowโ€”10,000 Americans turning 65 every dayโ€”this ‘something’ is going to happen to more and more people at a faster and faster rate.”

Tim: “Absolutely. So, are you seeing that so much of our bills and life are now online, and when people donโ€™t do this preparation, I imagine itโ€™d be very difficult to know where everything is because all you would have is your parentsโ€™ phone, you know, if theyโ€™re tech-savvy enough to have all the apps and everything set up on bill pay. I know my neighbor passed away recently, and his sons were looking through his bills, and they were like, ‘Why is he being charged $125 a month for this?’ It turned out to be their motherโ€™s cell phone bill from when she died like 10 years ago, and heโ€™s been paying this bill for so long. So you just donโ€™t know whatโ€™s out there if you donโ€™t have it written down somewhere.”

Adam: “Yeah, thatโ€™s so true. The joke used to beโ€”and I say joke in quotesโ€”between attorneys, if you wanted to know what bills somebody had after they passed away, just check their mail because within three months, youโ€™re going to get a letter of delinquency. But that was a joke from two decades ago. Things are very different now, where you know, ‘Go paperless, it saves the environment, it helps the companies.’ Well, that also means there isnโ€™t as much of a paper trail. And youโ€™re a little bit younger than I amโ€”maybe youโ€™ve seen the movie Zoolander, the joke of ‘The files are in the computer.’ Well, if the files are on the computer, it doesnโ€™t mean I know how to find them. Itโ€™s the same thing with the office, only even worse. And thatโ€™s exactly rightโ€”people now also have to worry about something called their ‘digital legacy.’ Thatโ€™s your email and online accounts and passwords. Who has access to it? What happens to your files when you pass away? If you have Facebook, is it memorialized? Who can log in? What do you want to have happen to your photos? Should they be deleted? Should somebody get them?

What computers and phones do you have? Because if somebodyโ€™s not paying for the service on the cell phone, all those two-factor authentication text messages that we get, guess whatโ€”theyโ€™re going to be locked out of accounts if they could get in. And then you have to worry about, well, even if they can get in, should they be getting in? Because they may not be legally supposed to. A lot of people think, ‘Oh, I have a power of attorney, I can get into all these accounts after someone passes away.’ The reality is the power of attorney privileges cease immediately when the person dies. You have to go through and get a letter of administration or a death certificate, and then you have to file with them. So weโ€™re creating templates to help people go through all these processes. There are a lot of tips and tricks that if you havenโ€™t gone through it, youโ€™re not going to knowโ€”not because youโ€™re an idiot, but because youโ€™ve never gone through it before. And thatโ€™s what weโ€™re trying to do is just make things easier for people to simplify the process.”

Olivia: “Yeah, that makes a lot of sense. Is it different from state to state? Do you work with all of the states, or are you mainly in the Maryland area?”

Adam: “I love that question. We have a lot of customers in the Maryland area because thatโ€™s where we started, but our resources are countrywide. If you want to find out the requirements for a will in Arkansas, come to the website, and we have that. We wonโ€™t provide legal services, so while I am an attorney, weโ€™re not offering legal advice, but we are providing the information and tools people need to navigate these processes.”

Adam: “As an attorney, I’m not providing legal services, and the team isn’t providing legal services. What I mean by that is we’re not drafting wills, we’re not drafting trust documentation for you. What we are doing is helping you get your information in order and then giving you a link to a service directory on our website where you can find attorneys in your area, tax professionals, funeral homes, cemeteries, hospice companies, long-term care hospitals in your area, and then they’ll be able to serve you better.

What people have told us is that after they’ve bought our estate preparation package, they actually saved money on their legal bills because the attorneys had all the information they needed. And while they’re billing hourly, they’re able to work even faster, so it pays for itself in a unique way.”

Tim: “Yeah, that’s absolutely true because, you know, the attorneys at least have an idea of where to go for the information, but it takes time to learn the stuff, right? It takes time to knowโ€”in our industry, it takes time to learn what questions to ask to get the right answer, and I’m sure it’s the same way in your industry and as the executor of the estate and as an attorney. So, yeah, it’s definitely a learning curve, and it takes time to learn things. So having it all in one place, I would imagine, makes for fewer mistakes along the way.”

Adam: “Service providers are very happy. There are a few tax professionals that we’re working with, and one is looking at a four-figure orderโ€”heโ€™s getting estate preparation packages for all of his clients. The reason why is it’s an appreciation token; it gives you a reason to check in with them on an annual basis, it gives them a talking point to tell their friends, ‘Look what just happened,’ so it’s deal flow. There’s just a lot of stuff that is working out really well.”

Olivia: “So, Adam, you mentioned a card game. I’m curious as to how that developed and if you can give us a sort of story as to how it’s been successful.”

Adam: “Okay. We were sitting in the hospital with my father, and we were just joking. We knew that things were kind of on that downward spiral toward the end, but he was very competent and had all his faculties, give or take, up until just a day or two before he passed. We started saying, ‘Dad, tell us one more story about this. What do you think about that? What’s your favorite food that you ate? Tell me the story about how you met Mom. What’s your legacy that you want to leave? If there’s one more thing that you could have done, what would you have done?’ Because the reality is, when somebody passes away, unless you have a recording of them, unless you had a conversation with them, their stories are gone, and that’s unfortunate.

So what we did is we took 126 questions across six categories and put them into a card game. It’s called ‘One More Story.’ You can get it on our website; it will be on Amazon probably by the time this goes up. It’s actually in Johns Hopkins Hospital right now in the gift stores, which is kind of neat, and in other places too. It just allows you to have these stories and conversations.

What is interesting is how people are using these cards. I originally thought they would be designed and delivered in a way that you could use them when people are getting older. So, theyโ€™re poker-style cards, a much thicker box, really easy to open, the finish on them is tactile design so it doesn’t slip out of your handsโ€”you know, we’ve all seen those bad playing cards, but these are high quality. Theyโ€™re printed in the United States, and their GSM 300, if that means anything to anybody, so the weight is hefty.

But people are buying them, and we’ve gotten emails saying, ‘Oh, after going through the game, I left them on my kitchen table. My teenage daughter and her friend, I came home, and they were going through the questions,’ and it led to conversations. We’ve had people reach out and say that they’ve taken them on dates, which I thought was crazy, but when you think about it, it’s like, ‘Yeah, they’re really good get-to-know-you cards, why not?’ We were written up in a ‘Best Father’s Day Road Trip’ guide, which is pretty neat.

And then on the other side of the equation, the ‘Nothing Left Unsaid’ oneโ€”it’s a little bit more of a heavier topic. It has questions like, ‘Do you have a will? Do you have a trust? Where are they?’ It goes through a lot of the questions that you really want to have answered if you can, without having to write everything down. But that’s the ‘Okay, really quick, let’s get this done,’ and lawyers and CPAsโ€”they’re buying them and giving them to their clients as well. They’re leaving it in their office in the waiting room so when people see them, it gives them the idea of, ‘Wait a minute, I didn’t think about having a guardianship designation in my will. That’s what this definition is; I should talk to my attorney about that.’ So it pre-educates them and helps with an upsell from the business sideโ€”a lot of use cases, some of which were unexpected, some of which are working out better than we thought.”

Olivia: “That’s amazing. So Adam, you were talking earlier about working with, you know, businesses, CPAs, synagogues, and everything like that. In what capacity are you working with them?”

Adam: “That’s a good question. So it depends on the company themselves. We have a bunch of different offerings, and we custom tailor them. If you’re an association or religious organization, we have fundraisers where you can take our products, and we have a commission structure that goes back to you. We have custom-branded white-label options, so ‘powered by Buried in Work,’ where we have 1,700 articles on the website, 30-plus guides and checklists. Weโ€™ll sit down and go through and say, ‘Alright, which of these are good for your community?’ and then we come up with a package where that can live on their website, or they can send people to us, and we’ll host a page for them where they have an instant, effectively, custom-branded resource bank for their communities or clients in a matter of weeks.

That’s great for hospice companies that want to focus on doing what they need to do, but they don’t necessarily want to say, ‘These are the instructions on how to transfer a car after somebody passes away in Pennsylvania.’ We have that information; we can put that together really quickly for them. Employee benefitsโ€”companies are offering our resources to their employees instead of just giving them a gym membership reimbursement, which is great, but this is something that gives them a lot of peace of mind. Sometimes it’s, ‘Okay, we just want to make the resources available,’ and other times it’s, ‘We’ll actually buy the estate preparation packages,’ or have you come in as a workshop.

End-of-life service providersโ€”obviously estate sale providersโ€”same thing, games, checklists, whatnot. Retirement, senior living communities, hospice, palliative care, pre-need insurance, therapists, death doulasโ€”there are a lot of people interested right now. To give the exact answer of what we’re working with them on, it really is specific to the company we’re dealing with. As an example, earlier today there was a religious organization in Maryland that we’re talking about setting up a custom webpage for them that will host all the information for their congregants. For their members, the congregation, if something happened, their website would link to us. They’d have a special password, and they’d have everything they need to know about end-of-life planning in one spot.

So, long answer to a short question.”

Tim: “Yeah, because it does impact everyone, right? At the end of the day, most of us are going to deal with this unless, well, you have really good siblings. The former Chief Deputy Technology Officer at NASA was talking to me about one of the products, and I think his quote is one of the best we’ve had, and we actually put half of it on our box. The second half was, ‘Leave your heirs the gift of organization,’ which I think is brilliant. But the front half of the quote, which not a lot of people know, was effectivelyโ€”and I’m going to paraphrase itโ€”’Whether or not you settle somebody’s estate, somebody is going to settle yours.’ And that’s the truth of it. We all have an estate plan; the estate plan just might be dictated by the state’s laws or regulations if you don’t have something in place and you’re not taking matters into your own hands. So if you don’t want someone to advocate on your behalf without them necessarily knowing what your wishes are, it’s best to get organized and take control of the situation yourself, and he’s 100% correct.”

Olivia: “Wow, that is so profound too because it is spot-on. I mean, somebody’s going to settle my estate, somebody’s going to settle your estate, somebody’s going to settle Olivia’s estateโ€”hopefully not for a long timeโ€””

Tim: “Exactly.”

Olivia: “โ€”but giving that person the gift of organization will make that job so much easier. And again, we see it a lot where people are so unprepared for the inevitability that is now right at their doorstep. And it is, as I said, overwhelming, confusing, and a lot of times, it’s maddening. They’re like, ‘Why didn’t he or she do this? Why didn’t they take care of these issues?’ And a lot of people just think, ‘Oh, I’ll get to it later. I’ve got plenty of time,’ or, ‘Oh, I just don’t need to deal with it.'”

Adam: “…because it’s someone else’s problem, but it’s unfortunate that the reality is that every single week I get phone calls from people going, ‘They weren’t prepared, they didn’t know, they didn’t wake up, they fell, they slippedโ€”what do I do?’ And it’s heartbreaking to see. Fortunately, we are making the process a little bit easier for people who are willing to spend a little bit of time getting their affairs in order.”

Olivia: “Yeah, and I love that it sounds like you have options for pre-planning and for people who didnโ€™t necessarily planโ€”checklists for both to get them through that tough timeโ€”which is a really good thing because, you know, you don’t necessarily have control over whether that person does the planning, right? You could nag your parents forever, and they don’t necessarily have to take those actions. But having that guidance afterward, I’m sure, is a big relief because there’s so much unknown.”

Adam: “Yeah, and like, we have analytics on the site. Right now, we have 12 active users on the siteโ€”I’ve got the dashboard up in front of meโ€”so they’re in Nevada, Oklahoma, Texas, Mississippi, Alabama, South Carolina, North Carolina, Illinois, Montana, Washington, Maine, a few other places. So there’s actually more than 12 people; there’s a little bit of a delay. And we can see the pages that people are hitting. Right now, most people are on the ‘Find Unclaimed Property’ pageโ€”we have links to every single unclaimed property database in the country, both state and federal. But the second most-visited page right now is the checklist of ‘What to Do After Somebody Dies.’ It gives you 56 steps: ‘Do this, do this, do this.’ You can tell that those groups of people are likely in very different stages of the journey.

What I want to see is that the number of people utilizing the website shifts to the preparation pages as opposed to the after pages. But the reality is, right now, most people are lookingโ€”when you look at the metrics across the boardโ€”at pages that are, ‘Oh shoot, something just happened.’ And that’s a challenging thing to see for a lot of reasons.”

Olivia: “Yeah, but like you said earlier, you know, it starts with a trigger. There’s always a trigger to these thoughts in your head like, ‘Oh, I need to take steps.’ So hopefully, after they go through this checklist, theyโ€™re able to shift focus on, ‘Oh my gosh, I don’t want to do this to the next generationโ€”let me get my stuff in order and be proactive going forward.’ So I’m sure some of the people are going to end up there, at least, right?”

Adam: “And that’s the hope. I’m sure thatโ€™s the hope.”

Tim: “Yeah, so Adam, just out of curiosity, do you have any estate planning attorneys who are subscribers to your website or your services? Because I think they wouldโ€”on the surface, you could look at it and say, ‘Well, that almost looks like replacing them,’ but I see thereโ€™s tremendous synergy there.”

Adam: “Absolutely. We have numerous estate planning attorneys who are content contributors on the website. We are in discussions with several right now about taking our content and white-labeling it. What we do is make their jobs easier because attorneys don’t want to spend time educating their clients on what a will isโ€”the attorneys want to do the legal work and actually get paid to do the work that matters. So this is something that they’re viewing as the ultimate intake document, where we’re helping them do their job better. And that’s one of the reasons why we’re not actually creating wills and drafting willsโ€”because as it stands right now, I don’t want to take that work away from other people; I want to help them do their job better and get people personalized service in the jurisdiction that they live in.”

Tim: “Yeah, and like you mentioned earlier, it helps everything become more efficient from a cost perspective and from a workflow perspective, right? Because attorney work isn’t necessarily quick, but if they know exactly what they’re doing, it could certainly make it faster. And that efficiencyโ€”you could hypothetically charge more for it, right? Because itโ€™s a better service.”

Adam: “Exactly, exactly.”

Olivia Kirk: “Yeah. So Adam, how could our listeners find you or locate you or get information from your website? Phone numbers, whatever you want to share.”

Adam: “Very easyโ€”just come to the website, it’s buriedinwork.com, so B-U-R-I-E-D-I-N-W-O-R-K dot com. You can email me personally if you wantโ€”[email protected]. Thereโ€™s a contact form if you’ve got questions, and me or somebody from the team will get back to you. Real people read the emails, it’s amazing.”

Tim: “I heard you’re very organized.”

Adam: “Sometimes. Sometimes.”

Olivia: “Awesome. Well, it was great speaking with you. This was so informative, and you know the work you’re doing is certainly going to make an impact for generations to come.”

Adam: “Thank you, I appreciate it.”

Joey Mure’s Wealth Without Wall Street Journey

Episode Summary

In this episode of the Control Your Cash Podcast, hosts Olivia and Tim chat with Joey Mure from Wealth Without Wall Street. Joey discusses his journey from working in the mortgage business, feeling financially insecure despite a high income, to discovering the concept of financial independence through his partner Russ and a pivotal book. Listen as they dig into the idea of controlling cash and generating passive income, contrasting it with the traditional Wall Street approach, and highlighting the importance of setting personal financial goals, careful planning, and the right support system. Joey also shares insights from his new book, which offers a comprehensive guide to achieving financial freedom. Tune in to learn how to align your financial strategies with your goals and create lasting financial security.

Guest Info

Link from Podcast

Wealth Without Wall Street website

Wealth Without Wall Street book

Key Takeaways

The Power of Access to Capital:

  • Having access to capital opens up opportunities that are otherwise missed. Joey emphasizes the importance of being able to choose the best investment opportunities and passing up those that aren’t good enough.

Financial Freedom Defined:

  • Joey defines financial freedom as having passive income exceed monthly expenses. He emphasizes the importance of controlling cash flow and aligning financial strategies with personal goals.

Critique of 401ks and Similar Accounts:

  • Joey points out that 401ks are not conducive to achieving financial freedom because they restrict access to funds until retirement age. He encourages thinking like Wall Street and banks, focusing on cash flow rather than accumulation.

The Book “Wealth Without Wall Street”:

  • Joey discusses the journey of writing the book, the challenges faced, and the value it provides. The book offers a roadmap to financial freedom, outlining the steps of setting goals, creating a plan, and finding support.

Transcript

Olivia: Hi, welcome to The Control Your Cash Podcast. I’m Olivia Kirk

Tim: And Iโ€™m Tim Yurek and we are here with Joey Mure.

Joey: Hey, hey, welcome. I’m so glad to be here.

Tim: Joey is from Wealth Without Wall Street. They’re located in Birmingham, Alabama, and they, they are promoting their new book creatively entitled Wealth Without Wall Street.

Joey: Hey, Tim, that’s what you get when you have two rednecks from Alabama. We just pick one name and we stick to it. Everything’s named Wealth Without Wall Street. In fact, um, my youngest child is, is named Wealth Without Wall Street. So, you know, that’s, that’s just how we roll.

Tim: I thought, I thought, well, I’m sure your oldest child is named Joey.

Joey: If I had, if I had a boy, it probably would be, uh, I got five girls. So, you know, it wasn’t in the cards.

Tim: There you go. So, Joey, tell us a little bit about your journey. You know, when, how you met up with Russ and how you sort of got captivated with this concept.

Joey: Yeah, I’ll tell you that, um, I think I’m on the journey that everybody is at some point in their career, their life is. I was the guy that grew up thinking you have to go study hard, go to college, get a good job, work there until you quote unquote retire. And man, just and hope that the the Wall Street game takes care of you in, in this accumulation model, like just stack up enough cash that one day it eventually takes care of you in retirement. And here I was, I was in the mortgage business and making great money. In fact, you know, more than I actually thought I would be making in my late twenties. And I looked up and I realized that I really didn’t feel any closer to this, like financial security, financial stability, financial, you know, independence, if you will, even though I was making well over $300,000 a year.

And I was like, something’s not quite right about this. You know, I’m putting money away into this thing, this 401k, everybody’s telling me that you’re supposed to do. I’m getting a match from Wells Fargo and this is, you know, it seems good, but I don’t feel like this is getting me any closer to the goal.

And in fact, I was actually getting farther from it because here I was a young family. I was working all the time, 60, 70 hours a week just to keep this commission, um, you know, hamster wheel going. And I was like, something, there’s something wrong with this. I’m at the beach and my kids are down there and I’m up here taking phone calls and doing pre-approval letters for the realtors that I work with.

And this doesn’t make sense to me, but I didn’t have an answer for what, how to, how to solve it until, as you mentioned, Russ, my business partner, we were, we were good friends at church. He handed me this book one day and he said, Hey, I want you to read this. I’m going to start referring you clients for mortgage, and I want you to understand what they understand.

And so here, read this book. And, and I did. And when I read it, it was like an aha moment. It was like, ah, this is what’s been the thing I’ve been looking for, right? The, the solution to the problem. And now we can get into more of that if you want, but that was really the light-bulb moment. And it took me to say, I need to control my finances.

And even further, I need to turn that into passive income so that I can buy the time back to be with my young family and to, to have this financial freedom that we talked about.

Tim: Well, you know, it’s, it’s really interesting that you felt that there was something missing. You just couldn’t put your finger on it. And you know, it’s, it’s, it’s amazing that that Wall Street institution wants you to trust everything to them. And then they act like there’s, they have this mysterious mystical power that only they know. And if you, if you have the audacity to ask them a question, they talk down to you like you’re a stupid SOB. And, and I find the whole, the whole process insulting. But, thatโ€™s what, that’s what we are trained to do. And if you do anything outside of that model, you’re a heretic.

Joey: A hundred percent. Yeah, the, the name Wealth Without Wall Street flies in the face of everybody’s like, wait a minute, there’s something other than that? Like, I just assumed that was the only thing. And to your point, um, you know, Wall Street has made it out to be that it’s so complex. You would have to go to school for years and get all of these various, um, designations and licenses and all this before you could ever understand how to do investing on your own.

And I bought that. I, I literally was like, well, I don’t want to mess things up. I don’t want to, you know, stick my head, uh, where it’s not supposed to be. And And lo and behold, deals were passing me up left and right because all of my money was locked up in this Wall Street casino. And I lost money in 2008. I lost money in years after that. And I thought this is, this doesn’t make any sense, but I don’t know what else to do. And, and I, like I said, uh, I give Russ a hard time on our podcast and YouTube channel and all this stuff, so. But I’m really grateful that he actually charged me $20 to read the book. And, uh, cause if he didn’t, I probably wouldn’t have read it and I wouldn’t be where I am today.

Olivia: Yeah, it’s funny how, you know, a lot of people who come to us, some of them don’t realize that there’s a problem. And that’s a lot about, like, that’s a lot of what we do is show them the problems that aren’t, that are there now, but also what those problems look like down the road, right? Because a lot of times it’s, it’s too late by the time you realize that, hey, this isn’t working.

This doesn’t feel right. Um, I don’t have any access to money and I’m making all this money. I’m saving all this money, but everything’s slipping through my hands. So, you know, the fact that, um, Russ came to you with that solution, you recognize the problem and then you actually took action on it is, is a really big deal, right?

Joey: Yeah, no doubt. And it was one of those things that I think I liken, um, what you guys do, what we talk about on our show, um, as like being at one end of a tunnel. And, and like at the very beginning, you can see that there’s like a light, you know, like down there. If you, if you ever stood in a tunnel at one end and you’re looking at the other, you see a very small opening and you’re like, okay, there’s something there and I’m going to just do what I can.

And I mean, you’ve probably seen this a million times people implement this infinite banking concept. That’s what we’re talking about at a small level to begin with. They just start doing maybe, you know, my first policy was $2,000 a month. And I thought that’s the only amount I could ever put into this.

Like that’s all that I have access, you know, left over to do. And then as you start walking down that tunnel, you start to see the same opening just gets bigger. And you start to see the picture that was always there, but now it’s in bit in a better perspective and I can see a whole lot more. And so then, you know, I started two, three, four, I’m up to like 20 something policies with my family and we’re more than 10 X what we had done to begin with.

But that’s because it, the vision starts to come into clarity. You start to see controlling my cash is tremendous. Like this puts me in the catbird seat for deals that I never would have gotten access to before. Um, I just did a deal less than 30 days ago that somebody was needing a bridge loan for 30 days and in that deal I had to come up with just shy of $200,000 to help them bridge the gap on this massive apartment funding deal.

And for that, they gave me 2% for the for that one month on that money and a half a percent in the overall project of the apartment complex in perpetuity. Do you think I could get a deal even closer to that in my 401k? Not a chance. So controlling your cash is just an amazing place to be. So I don’t know if that helps you.

I’m just trying to give you like my, my journey is, I mean, it started with that small picture and now it’s in full, full view.

Tim: And it’s, it’s so common to when that happens, because, you know, like Nelson used to always tell me, he said, Tim, when you have access to capital, opportunities we’ll find you. And there is no, there is nothing that I’ve experienced in my life with, with more veracity than that statement, because when you don’t have money, there’s opportunities flying past you.

You don’t even, you don’t even know they’re happening, but then all of a sudden you have access to capital and the good that the really good deals start coming your way. And it happens, they happen. Because you have access to capital. And one of the things that I found and the amazing thing is not so much the deals you take advantage of, but the deals you pass up because they’re just not good enough. And when, when you were cash strapped, so to speak. You would have jumped at those opportunities. And now you get to pick and choose and say, I don’t know if that’s where I want to put my capital at this point.

Joey: A hundred percent. Yeah. We talk about the book that we were referencing is Become Your Own Banker. And there’s nothing more true than to think about that position. A banker underwrites each deal according to whatever they determine is worth the use of their capital, right? And, and they turn down tons of deals that don’t meet the criteria.

And that’s what you’ve done is you’ve put yourself in that position. And, uh, we talk about this, you know, in our, our book and in our, our training, our, our coaching that you have to get yourself around deals, because if you only see one or two, they all look good. But if you see a hundred, you start to see those first two that you saw, those are terrible in comparison.

It’s always compared to what, right? And, and so man becoming an investor is a super important process. You know, step in this process and you can’t do it just by doing it as a hobby every once in a while.

Olivia: And it’s funny, Joey, the whole Wall Street model aims like if you’re following that model, right? If you were saving in your 401k, saving in traditional investments, even if they’re non-qualified, the last thing anyone wants to let you do is access that money. You know, whether it’s qualified or non-qualified, it seems like it’s very difficult to get your hands on that money, so even if you are saving in those vehicles and you do have access, it’s not as easy as, okay, I have this cash available, I have this opportunity, do I want to do it? But there’s nothing standing in your way to take those next steps, which is something that I don’t think a lot of people realize, right?

So, when you buy into this model, and you put all your cash flow towards it. It makes it very difficult for you to take advantage and educate yourself on other investment opportunities because you, you believe that the Wall Street model is the right one.

Joey: Yeah totally, and I want to point something out that you didnโ€™t say directly, but Iโ€™ll, Iโ€™ll point it out. You know we believe that the absolute answer to financial freedom is when your passive income exceeds your monthly expenses. Right. So if this is the first time you’ve heard us talking about this, it’s great.

Just think about it for a second. If your monthly expenses, I’m just going to use an arbitrary number, $10,000 a month, and you have $10,000 a month that hits your bank account, ACH, in your mailbox, wherever the location is, I don’t care, but it comes to you without you actively having to go and produce it.

It’s literally passively put into your account. If you pull up the app on your phone that says calendar, at that point, as soon as that happens, your calendar is completely open. Nobody is dictating to you what’s on it. You’re getting to choose what gets put on there, who you spend time with, how long, what location that you’re spending the time with them and in what way you’re investing your gifts and abilities that God’s provided for you.

It is all up to you at that point. You’re at your complete potential as far as what you can do to impact this world. So let me ask you a question. Why do you think Wall Street encourages us to accumulate money into an account over 20, 30, 40, 50 years and yet they do not choose to be paid in a similar fashion? How does Wall Street get paid? They get paid on cashflow when, 30 years from now, or today? Every month, whether you make money or not, they’re going to take a management fee. They’re going to take all kind of junk fees, whatever it is. And it’s going to be percentage based on your account value. Again, whether it went up or down and they get paid today. Who do you think is creating financial freedom? Are they creating it for you or for themselves? That, and so I just want to, like, I’m not trying to just like completely pooh-pooh Wall Street because my name and my company’s Wealth Without Wall Street. I’m just saying, think like the Wall Street guys and do what they’re doing, not do what they say to do.

And, and that will lead you to actual financial success, financial freedom that we talked about in our book and in our podcasts and everything else.

Tim: Yeah. So, it’s more, it’s it’s more a thing of do as they do, not as they say.

Joey: A hundred percent. I mean, we’ve, we’ve talked about how banks think. They try to encourage you to get what the lowest interest rate, right? Hey, you should get the lowest interest rate. But meanwhile, that means that they’re telling you to pay something back over the shortest amount of time. Well, why did they do that?

Instead of, so just as example, they tell you to do a 15 year mortgage at a lower interest rate. They’re encouraging you to do it at that lower interest rate. Why? Because they get more of your dollars in repayment today than stretching it out over 30 years. Well, why is that? Because they want your cash flow today.

They’re trying to create cash flow, not accumulate. So in both cases, do as they do, not as they say.

Tim: Yeah, that’s a great point, Joey because when you think about it, they take our eye off the ball as to what’s really important by saying, hey, you’re gonna pay more interest with a thirty year mortgage than you will on a fifteen where, you know, you’re gonna pay seven and a half percent on a thirty versus six uh six and a half percent on a 15. Why do they incentivize us to take the lower, you know, the lower interest rate? Because they’re getting a greater chunk of our monthly cash flow. So the name of the game is cash flow, not interest rate, but they take our eye off the ball by saying, hey, this is the interest rate. We can get you from seven and a half to six and a half, but you got to do it on a 15 year amortization rather than a 30.

The reason they do that is because it’s always about and always has been about cash flow, not interest rate.

Joey: Absolutely. And the faster that you, I mean, the funny thing is we’re sitting here talking about Nelson. And if you don’t know who we’re talking about, Nelson Nash. The founder of the infinite banking concept, um, a personal mentor to Tim and I, and Russ, as we’re talking about, um, the author of Becoming Your Own Banker, what did he say?

He said, if you know what’s going on, you’ll know what to do. And this is a perfect example of that. As soon as you understand that banks, Wall Street, big corporations, you name it, they run off of cash flow and they create freedom for themselves through cash flow you’ll know that that’s what you have to do. Again, it’s not that I want to you know victimize or you know make make banks and Wall Street the the big evil villain I’m just saying they’re pretty dang smart, like let’s start doing what they’re doing and then we’ll see and not what they say to do.

So anyways, just giving Nelson another plug there because he was a brilliant man.

Tim: Oh, absolutely. And you know, the, the impact that he has had over his life and beyond because of people like us. Who are disciples of his, uh, is just incredible. And the impact that we’re able to have with our clients by literally shining light on the areas that need, need to be exposed, uh, is just incredible.

Joey: Totally.

Tim: So tell us a little bit about, about the book. I know in the pre-call you had, you had mentioned that it’s, it was a longer project than you had anticipated. You know, that, that’s something else, you know, talk, talk about the book journey, Joey.

Joey: Well, I’ll tell you, um, you know, I think at a certain point you decide that we, we do podcasts, we do YouTube videos, we do social media stuff, which by the way, uh, I’m terrible at that stuff, but we decide there are people that create or like they take in content in different modes and we don’t have a written, a really strong written mode that people can kind of consume what we’re, what we’re about. So we, why not write a book? And so you got two rednecks in Alabama and you say, neither of us are really strong writers. Let’s hire a company that actually will help us do that and we’ll just be interviewed by them and they’ll ghostwrite it and we’ll just make sure that it all works out. That works great until the company that you that you hired to ghostwrite it goes bankrupt. I do not recommend that I would just prefer not to hire a company that goes bankrupt in the middle of your project. Um, cause it just, it causes delays as you can imagine. Um, and the other part of it is you always have to, whether someone’s writing it for you or not, you always have to set aside time to read what’s been written.

And if it’s always the last thing on your list of to do’s, it just gets pushed and pushed and pushed and pushed. And just saying that these are the real life challenges of writing a book. Um, but I’m grateful that it’s there because now it, like I said, it gives people, if you want to, you want to take seven years of a podcast, our journey and looking in the rear view mirror and saying, how did we get to over $50,000 a month in passive income?

How did we get to this point of financial freedom? Well, there’s a lot of things that we could summarize instead of you going and listen to all seven years of our podcast and put it in a book and say, this is the path. The three main steps that it takes to become financially free. We’re going to give you those in a written linear kind of fashion and provide resources to help you along the way that if I could sum up the book is exactly what it is.

It’s your kind of roadmap. To cut through some of the, you know, all the many years of doing this and just say, I can read it in, you know, two days.

Tim: That, that’s an awesome tool to have. Uh, you know, certainly having that roadmap could cut out a lot of heartache, a lot of, uh, distress.

Olivia: Add some years back to your life, for sure.

Joey: Absolutely. And I, and I’ll tell you, we, it wasn’t really clear to us until we started writing the book. It helped us to organize our own thoughts, which I think was super helpful. But you know, we started with the idea that you’re on a destination to get to financial freedom, right? If you, if you pull up your phone right now and you have your GPS, I don’t know about you, but you know, I came up in the, the years with MapQuest, you know, the written document that tells you where to turn and all this stuff.

And if you were trying to print it out, it never printed your, your ink would run out and you’re like, oh man, I don’t know where to go. This last page is not printed. Well, now you guys have it so much better. You just pull up your phone and it tells you the fastest way to get from where you’re at to where you want to go.

And, and that’s your GPS. That’s your, and so that’s what we base this whole book on is what is your GPS to get to financial freedom? And it’s your goal, your plan, and your support with those three components, you can get there and we break down each one of them to help you understand. First of all, where are you at right now?

Because if you don’t know where you’re at right now, it doesn’t really matter where you’re headed. You, you don’t know where the next, the next step, and we call it the right next thing to help you get to that end destination. So, um, I’m happy to break down each one of those goal plan supports, but I just want to let you know that that’s kind of the, the backbone of the book that helps give you, um, you know, each step along the way.

Tim: Well, that’s tremendous. Let’s, let’s, let’s go in. Let’s dive into that, Joey. So let’s, let’s break down the, the, the goal, the plan, the support.

Joey: Great. Well, I think with any goal, the picture is again, it’s, it’s knowing where you’re at today and then where you’re headed. And so we, we use a tool called the financial passport. It’s a course that we built over a couple of years that helps you to dream. And I don’t know about you, but as adults, as kids, we could dream all day, right?

We could tell you like my, you know, my five year old wants to be a ballerina. My nine year old, I’m not certain at one point she said she wanted to be a comedian, which she actually called chameleon, but she meant comedian, but that was really cute to hear. But you know, we all have dreams when we’re little, we get older and I feel like we kind of shut that part of our brain off because we just get into the, like the throes of what I have to do.

I have all this responsibility now. I have to do this. I have to do that. It’s not, I wish I were doing this or I could do that. And so, we find that it’s super important to use this passport challenge to help people figure out, man, when I’m financially free, I want to be this person. Like, who do I want to be?

What do I want to do? And what will I have? So be, do, have is in that passport challenge. And it’s amazing if people will actually take us up on this and walk through this, they can start to get really clear financial freedom. What does it look like for them? And then only then if they map that out, they can even put pictures to it.

It’s almost like a vision board that we walk people through. Then they know how to then take their finances and start to organize them. That’s where the plan comes in, right? If you under the plan, everything looks like a good idea until you have a goal. Right? So I’ll tell you one of the funny things that we point out, and we’ve already kind of talked about it today on the show, is how 401ks qualified plans are the worst vehicles to get to financial freedom.

Now, I’m not saying that they’re the worst vehicles to invest or to accumulate or whatever, but to get to financial freedom, if that’s your destination, 401ks are the worst. Because why? Because they require you to put money in and not touch them until you’re in your 60s. Well, if you’re 25, you’re 35, you’re 45 even, and you say, I want to be financially free in the next five years, it doesn’t matter how much money you have in that 401k, that money is not getting you closer to that goal.

In fact, it’s keeping you further from it. And it’s actually putting you at a disadvantage, even though you’re saying, I’m, but I get a, I get a free match, Joey. That’s like a, that’s free money. Well, it’s free money for when, for when you’re in your sixties, well, that’s not going to help you get there today.

So we’re not talking about rate of return. We’re not talking about. The money that gets put in there or the tax, you know, I don’t have to pay tax on it today. They’re the worst for creating cashflow today. And so anyways, there’s a lot more points under the plan that we talk about your budget. We talk about debt freedom, not being financial freedom.

There’s all sorts of things. But as you get that goal, you start to put your, your money to supporting that goal into the plan. And then the, and that’s where we talk about infinite banking. Obviously we’re talking about controlling the cash that’s under the plan step. And then the support is that last step.

And there’s a few pieces under support, knowing what sort of investor you are. We’ve, we designed an investor DNA profile. That tells you, Hey, if you’re on the DISC personality profile, if you’re a D I S or C, what sort of investments would align with you as a, as a personality and which ones you should focus on, which ones you shouldn’t focus on because they’re going to help you get to financial freedom as fast as possible if you’re aligned with them.

We talk about what sort of, um, hands on options for passive income, hands off options. And then finally, what sort of support system do you need to get to your goal? And it could be coaches, mentors, community. It could be actually meeting with somebody that is helping you along the way one on one. Or in a group or mastermind setting, all those things are important because I can tell you, as we’ve been talking today, you go sit around your water cooler and you start talking about how bad 401ks are, you’re not going to get met with a whole lot of support. In fact, they’re going to say, Tim, you’re crazy. Uh, you’d be dumb to stop putting money in a 401k because you’re getting this free match and this and that and the other thing. And you’re going to get met with a lot of like, this is, this is a bad idea Tim, where are you getting this bad advice? And they will take you off course because they’re not thinking the way you’re thinking.

They’re thinking retirement accumulation. They’re not talking about financial freedom today.

Tim: And you know, Joey, so many good points there that I want to sort of unpack. Number one, understanding what your goals and objectives are first. And if your goal and goals and objectives are to be financially free today, we’re not saying, or you’re not saying that 401ks are bad. They’re just not in alignment with your goals and objectives. And I want to share a story. Uh, I’ve, I’ve worked in the recent past with a business owner and she had purchased rental real estate through her 401k and all of the tax benefits are tied up in the 401k, all of the cashflow, the passive income flows back into the 401k. So she’s literally managing this taking time out of her day per month to manage this property and receives exactly zero benefits. No tax, no, no current tax benefits, no pass through or passive income, none of that. And all it is is a headache for her. And then because of the restrictions on that account. She can’t refinance. She can’t sell it to a relative. So, the only way out is to sell the property, which she doesn’t want to do. And the point is, this, that whole concept is not taking her closer to where, you know, what her goals and objectives are, which is financial freedom today. And so I love the way you set that up and explain that because you really have to align your goals and objectives with the strategies you’re using to get there. And that is, that is something that I find that is the antithesis of the Wall Street model. You know, their, their solution to everything is more stocks, bonds, and money markets or mutual funds. And that’s not necessarily bad, but what are you trying to accomplish? That’s where it could be bad.

Joey: And to your point earlier, they will take you off course by focusing on the things that are not getting you closer to your goals. Well, oh, well, you know, Tim, you don’t want to, you don’t want to get rid of this, um, account. I mean, do you, did you not see what we made in that account last quarter, the rate of return, right?

Or, or the tax benefit or whatever the case is. Those things are good things. They’re not the ultimate thing that is. So you go in there ready to pull the plug on something and say, this is not fitting my, my goal to get to financial freedom and they get you focused on this over here And take your eye off of this is what I’m actually trying to accomplish.

Right? So it’s, uh, yeah, you gotta control your cash, you gotta you gotta align things to get you, uh on the right path and man stay the course.

Olivia: Absolutely. And I feel like there was a trend there of alignment all through all through what you were saying, Joey, you know, from the alignment with your goals all the way through the alignment with the support and community that you surround yourself with. And I think that’s so important to surround yourself with people who you want to be like, right?

So do you want to be like the people around the water cooler or do you want to be? Like the people who are actually experiencing financial freedom, who could lift you up, support you, and who you could learn from, right? So you don’t have to make the same mistakes that they made, and they don’t have to make the same mistakes that you made, right?

So, building that community that everyone could benefit from is really important.

Joey: Totally. Yeah, I, I don’t think that you can underestimate the value of community. Um, I, I’ll just give you this really quick story. There’s two people in my life that I love dearly, great friends of mine, and we’ve known each other. I would say both of them I’ve known for probably 10 plus years, 10, 12 years, let’s say.

And throughout that time, I have dramatically changed after implementing the things that we’re talking about, shifting the way I think, getting in rooms with people that are way far ahead of me in terms of the way they think and masterminds and other things. And recently I was talking to them and it was like they were still at the same spot that when we met, mentally, professionally, whatever.

And in both cases, I don’t, I didn’t want to, I don’t want to sound braggadocious in any way, shape or form. I literally went to them. I said, man, I think you’re thinking too small. They were telling me what they’re up to and all this stuff. And I was like, I don’t want you to take this wrong but you have way more potential than what you think you have.

And the only reason I know that is because I used to think the same way, but being in the right rooms around the right people has drastically lifted my lid and you need your lid lifted. And they’re like, wow, thank you. You know, you’re right. But I’m just telling you tangibly, I’ve seen it in the lives of some of the people that I love the most and there is no going back once that lid is lifted, there is no going backwards. So anyway, just just something that happened recently I thought I’d share.

Tim: No, that’s, that’s interesting. And, you know, it’s funny how oftentimes we, you know, we speak with people and they said, you know, let’s say they’re ready to, to implement the infinite banking concept today. And they say, hey, you know, uh, somebody showed me this eight years ago or ten years ago and I just wasn’t ready or I didn’t understand it or I didn’t think it could work or whatever.

And you, you look at, you know, like Nelson used to say, the longer you wait, the longer you punish yourself. And it’s so true because it’s a different life. It’s a better life. And people just don’t, they don’t. They don’t see that. They don’t see it because they can’t see it looking through the lens they’re looking at things or the perspective which they’re viewing things.

But when you change their perspective, you know, all of a sudden, the world of possibilities has opened up for them.

Joey: A hundred percent.

Tim: So Joey, let’s talk about how, uh, our audience or, uh, our listeners can get in touch with you.

Joey: Well, I’ll tell you one of the things that we typically do is, um, we’ll just set up a page for people to access any of the things we talked about today. You can get a copy of the book. You can actually take that investor DNA profile assessment. If you don’t know what sort of investor you are. Um, and I think our contact information’s on there, email and so on.

But if you go to wealthwithoutwallstreet.com/control your cash, uh, wealthwithoutwallstreet.com/control your cash. All of that information is on there and just keep it simple so you can access any of the things we talked about.

Olivia: Well, thank you so much for joining us today. Um, for anyone out there who wants to get a copy of Joey’s book, be sure to visit that web page and, uh, thank you so much. It’s been great chatting with you today.

Joey: Always a pleasure to be in the room with like-minded people. So thank you guys.

Olivia: Awesome, thank you.

Tim: Joey, it’s been our pleasure to have you. And, uh, we’re looking forward to meeting up with you and Russ at some point in the future.

Joey: Likewise. 

Infinite Banking Insights with Jeremiah Dew

Episode Summary

Join Olivia Kirk and Tim Yurek on the ‘Control Your Cash’ podcast as they co-host with special guest Jeremiah Dew from the Cash Compound and the Banking Bros. Follow along as they dive into the intricate world of infinite banking as Jeremiah shares his journey alongside his brother, Jonah, from their backgrounds in entertainment and retail banking to discovering Nelson Nash’s revolutionary concept. Learn about the fundamental principles of infinite banking, the importance of paying yourself first, and the benefits of using whole life insurance as a tool for financial freedom. This episode is a must-listen for business owners and anyone looking to better control their financial destiny!

Guest Info

Cash Compound website

Banking Bros website

Key Takeaways

The Power of Learning and Mentorship:

  • Mentorship played a crucial role in their understanding and application of infinite banking. Jeremiah emphasizes the importance of someone explaining complex concepts to make them comprehensible and applicable.

The Evolution of Infinite Banking:

  • Discussion on how the concept has grown and spread over the years, helping countless individuals and families gain control over their finances. The importance of understanding and leveraging cash flow for financial stability and growth.

Practical Explanation of Infinite Banking:

  • Jeremiah uses a visual aid with three cups to explain the concept of premium, cash value, and death benefit. This analogy helps people understand the separation and interaction between these elements in a life insurance policy.

Importance of Financial Control:

  • Tim and Olivia emphasize the significance of controlling oneโ€™s cash flow and the broader financial picture. Infinite banking is presented as a method to achieve financial control and efficiency, leading to a mindset of abundance rather than scarcity.

Transcript

Olivia: Hello and welcome to the Control Your Cash podcast. I’m your host Olivia Kirk 

Tim: and I’m Tim Yurek 

Olivia: Today we have with us Jeremiah Dew from The Cash Compound and The Banking Bros. 

Jeremiah: That’s right. We have a special edition podcast as well. We’re co-joining and co-creating today. It’s the Cash Compound Podcast with Olivia and Tim.

And, uh, we are going to be interviewing them. Maybe they’re interviewing us. How is this going to work? Who knows? It’s going to be a great conversation between the three of us. In the infinite banking space. So here we go. 

Olivia: Awesome. 

Tim: So Jeremiah, I love your story on how you and Jonah came to know or understand infinite banking.

And before we get there, give us a little background because you also have a really, uh, neat history prior to Infinite banking, uh, you know, as, as the voice, I believe of college basket, was it basketball for Clemson University? 

Jeremiah: Yes, indeed. So, yeah, I have a background in speaking and emceeing and family entertainment.

Some of that was in sports, but a lot of people saw me do that in my neck of the woods, in the upstate of South Carolina, that’s the Northwest corner of the state. For a long time, 13 seasons through the end of 2022, I was the MC for men’s and women’s basketball, Clemson Athletic, Clemson University. As well as prior to that, I had been the MC for a minor league Red Sox team in our neck of the woods.

So a lot of t-shirts got thrown in my day. That’s, that’s kind of the main thing, as long as you, you get a couple of friends, throw a couple of shirts and make everybody else mad. That’s, that’s my job. 

Olivia: I think everyone can relate to that. 

Jeremiah: Yeah, you, uh, so yeah, so those types of things were what I was doing.

My brother was completely different line of work. Uh, I’ve got some years on him and Jonah who runs The Cash Compound with me got out of school and went into the banking world and this is um, this is a retail banking. So he’s he’s in the uh, uh, the call center taken, taking people’s complaints, answering questions about the checking and savings accounts, that type of stuff.

And he kind of worked his way up into a little bit of a supervisory role. So if you’re irate enough, you can reach Jonah. And, uh, and then after that, he, uh, saw an opportunity in, uh, property and casualty insurance, PNC still in our neck of the woods, when we were also in a networking group where we discovered this idea.

Behind infinite banking it found us. We found them people told us about it We’re sorely confused, but that’s where things got to about 2015 when we first heard about this concept 

Tim: So talk talk to us a little bit about uh like that learning process when you get exposed to this idea And you’re like, I don’t know if it works maybe it does, maybe it doesn’t.

You sort of check a little bit under the hood. You get some answers, but you don’t get all the answers, but you’re like, wow, if this works, this might really be something. And then you just keep, keep tinkering with it. Cause that was literally my experience. But, but tell us how, how that whole thing evolved and you got to the point where you’re like, hey there’s some teeth to this. 

Jeremiah: Well, yeah, exactly. That’s exactly what happened. So I was told about Nelson Nash’s book. Now, everybody out there who follows us and you heard about this guy, who is this R. Nelson Nash guy. And I heard about his book. The fifth edition of Becoming Your Own Banker is what I picked up shortly after hearing about in a very crude and badly put assumption about what was going on, what infinite banking was.

So I got the book, off Amazon. I read the book and I thought, oh no, it was just like being back in high school. I just read this book. I can read English. It didn’t take me all that long, but I have no comprehension of what just happened. What is, what is they, what are they talking about? What is this? And of course I skipped over all the charts.

I mean, there’s nothing to read there. There’s just numbers. So I am not familiar with insurance. Now I know what life insurance is, but I’m not familiar with utilizing it for any type of concept. And I’m a Dave Ramsey guy at this point in my life. So personally I had saved up all my money. And Dave Ramsey said, don’t pay other people interest by getting into credit card debt.

So save up your money and then, you know, spend it, go back to zero. That’s all I knew. So, uh, what I was reading, I didn’t understand. So my next feat was to go to YouTube. I’m a pretty visual guy. I do marketing. I understand being in front of the camera. I like video. I go to YouTube. I look up all the bold print, right?

That’s what you do in high school. Look up all the bold words and try to understand what they mean. So all of these words inside his book that I don’t understand. I start YouTubing them, googling them, looking for people who made videos or explanations on what is this stuff. I don’t understand what financing is.

I don’t really understand what cash value is. I don’t understand these. There’s so many analogies from who became our mentor and Nelson Nash that have to do with Airplanes. I don’t know anything about aviation. What are these guys talking about? Like, what? I don’t, what? What is it? I thought we were going to get rich here.

And I’m worried about dying because they’re talking about life insurance. Like, now they want me to die. I’m a little bit confused. So that’s kind of how it started. And then we found who became really kind of one of our earliest mentors in the game. He connected us to some of the guys that we work with now as well.

And they were there to describe what’s going on. Um, it’s kind of like what the New Testament says. You know, there’s the, uh, There, there’s the, um, the, uh, the guy who’s reading the Old Testament scriptures of Isaiah. And somebody comes up to him and they ask, the prophet asks that man, โ€œDo you understand what you’re reading?โ€.

And he’s like, No. How do I understand unless someone explains it to me? Thatโ€™s why we have this whole practitioner model that we’re all involved with, right? How do, I don’t really understand. How to do this or what to do, unless someone’s going to explain it to me. So that’s kind of how it started for us.

I was intrigued. The people who are doing this process were a lot richer, wealthier and doing stuff we didn’t understand. So we trusted them. We knew there was something to it, but boy, I felt dumb when I first got into it by myself. Cause it was like, see, this is why I’m not rich. I don’t know what the crap they’re talking about in this book.

Tim: Well, you know, there’s, there’s so many similarities to your path to the concept and mine, because, you know, the, the difference that you, the advantage that you had is that you had YouTube and videos, and there were a lot more, there was a lot more people involved with this concept. And there was a lot of education out there.

And to your point, some good, some bad, but it all keeps moving you forward. Back in the day, when I first met Nelson Nash, it was 1997. He didn’t write the book until 2001, I believe. So there, there is only one source and that was Nelson. And I was just brazen enough and just stupid enough to pick up the phone and call him.

And I’ll never forget, uh, when I called Nelson, he answered the phone. He’d say, Nelson Nash. And I said, is this Nelson Nash? And he goes, That’s what I said. 

Jeremiah: There you go. So, yeah, we don’t know how to start these conversations sometimes. Like what, what do I say next? Yeah. 

Tim: I had no idea that he was going to answer, actually answer the phone.

And so I would ask him some questions. He would answer the questions and. That would satisfy me up to that point. And then I dig into it a little bit deeper and have a few more questions. So several days later I’d call Nelson and now we’re starting to create a bit of a relationship. And finally, it gets to the point where, you know, I feel like I’m intruding on this guy’s life and he’s giving me a lot of time.

And I’m not compensating him in any way, shape or form. So I said, Hey, what would it take to get you to come up to Wilkes Barre, Pennsylvania from Birmingham, Alabama, to teach me and my clients about this concept? Cause at that point I was really thinking that this, this could be the thing I’m looking for.

And sure enough, he says, yeah, you know, we arranged something and it was July 17th, 1997 and I, I had about 12 or 13 clients and part of that group was a few agent friends of mine and we got together and Nelson came up and he spent two days here in Wilkes-Barre educating us. On the infinite banking concept, but I’ll digress a little bit because when we get, when he gets to my office, he has this rollerboard and it’s filled with books.

You know, uh, Murray Rothbard’s book, What Has Government Done to Our Money? Whatever Happened to Penny Candy? All these different books and I’m thinking like what the hell’s going on here is this guy like it’s just like a book fair But it was all part of his message and and it all fit in retrospectively it fit in really well, and I’ll add one last part to that story as we all know Nelson passed away in March of 2019 and in January of 2019 he called me. And after the, you know, the initial, you know, how’s, how’s your family, how’s your family type thing.

Um, he gets right into it and he goes, my word, look what we started. And I’m sitting there thinking like, what’s this we stuff, you know? And I said, well, you know, Nelson, you, you know, you really do. You really did add a lot of value to a lot of people. And the downline to that is just amazing. When you think about the grandparents and children and grandchildren that you’ve made better off because of this concept, he goes, yeah, but you were, you know, you were part of that.

And I said, no, Nelson, I was not part of that. He goes, well, you know, I’m a forester. I said, or he said, you know, I, I was trained as a forester. And I said, yeah. And he said, uh, you know, a tree can’t grow unless it has fertile soil. And he said, you were fertile soil. 

Jeremiah: There you go. 

Tim: And he said, when, when Mary and I left Wilkes-Barre and we were driving back to Birmingham, I said to her, this is how we’re gonna get our message out.

He said, at that point in my life, I was really good. At covering this concept in my little neck of the woods in Birmingham, Alabama. But I had no idea how to get this message out to the world. And I said to Mary, we’re going to market this through other advisors and agents, and we’re going to go to their town and we’re going to teach our 10 hour seminar.

And that’s exactly what he did. And, uh, yeah, so I, I gave him that and uh, unfortunately I got to see him at Think Tank and unfortunately not too long after that, uh, probably about four or five weeks after Think Tank in 2019 he passed away, but he was a neat guy. He was a great, great human being and he, his impact is just so, so deep.

Um, he really, really changed the lives of a lot of people. 

Jeremiah: It’s so great to hear that type of legacy from people who knew him. We’re kind of in that second generation, maybe like Olivia, you know, who I, I didn’t get to meet him at all. Maybe she did, but Jonah and I started doing the process of infinite banking, like I mentioned, uh, at least mentally, right.

Rethinking our thinking about money. We both had policies early 2016. We did not meet him in those first three years that we were doing this. We’d heard about him, of course. We started to watch some of the things that folks like you, other practitioners, or in his institute were, um, posting at that point.

Because I’m a, you know, a pursuer of this content, but, uh, it’s a beautiful thing. You know, when I first saw that there was an old white guy, I mean, be, you know, base here for a second on the back of a book about finances from Birmingham, Alabama, and I knew a thing or two about Birmingham.

Historically, I have a black history show. And, uh, you know, I perform on stages as Martin Luther King and all these people. I said, well, I’m not calling that number. Maybe Tim’s going to call that number, but I’m not going to call that number. I don’t know if I want to talk to, I don’t know if that guy wants to talk to me.

So, um, it was a beautiful thing to hear about his testimony with people, all sorts of people, of course, and freeing them, uh, from, uh, the financial ruin that the government and themselves or credit cards, of course, and banks put them through and that’s he’s an economist, right? And we’ve started to learn through this one pinpoint idea and how to personalize the banking content and concept in your life through the massive problem and the massive disenchantment that we’ve all been through from our government’s corrupting dollars or banks and bankers and Wall Street doing the same thing. It’s a beautiful thing to hear about that story from the people who knew him well.

Tim: Yeah, absolutely. And, uh, you know, it’s, it’s also, I think, gratifying to see exactly how this whole movement has sort of, uh, morphed or evolved. And, you know, people had said to me, well, you know, that must have been great for you because, you know, you were the only person doing infinite banking. And I wasn’t the only one, but there was, there was maybe a handful or two at that time.

And, you have to understand what was going on in the world in the late nineties. People were, you know, the stock market was going up seemingly forever at 20, 25 percent a year. So if you’re selling cash value life insurance in an environment where the market is, is just handed out 20, 25 percent rates of return, year in and year out.

That’s not an easy sell. You know, that’s not an easy conversation to have with people. And I can’t tell you how many times people said, why would I ever put my money into something that’s earning 5 or 6 percent, which it was at the time. When I can get 20 percent in the market. And how do you, how do you come combat that?

Jeremiah: It’s a very, yeah, it’s a very interesting concept to think about, you know, when he first discovered the concept that was always sitting in front of him, that the interest rates were 15 16, 17, 18 percent plus. And same thing, right? It’s just, but banking exists. Banking is, banking is always happening, uh, even when the rates are up or the rates are down.

I love that. 

Tim: Great. And interest rates have nothing to do with it. 

Jeremiah: But everyone thinks it does. It’s throwing them off. It’s throwing them off mentally. Yeah. 

Tim: Yeah. We always, the, the, the, the analogy or the term we use is. Interest rates take our eye off the ball. And if you know, anyone who’s played baseball understands that’s that concept and that idea.

And it’s, it’s so true. And yeah, interest rates are attractive at times, high or low. You know, if you’re investing high rates are great. If you’re paying interest, low rates are great. The problem is we’re both, we’re always paying and we’re always saving. So how do we reconcile this? And that’s where I think the infinite banking concept really, you know, fills the void, so to speak.

Jeremiah: It really does. Now, Olivia, I’ve got to ask you one or two questions about how did you growing up with with a Tim Yurek, one of the founding fathers of this, according to Nelson, right? The boss man says that Tim was there from really day one of getting the concept to the masses is I got to wonder, you know, what’s it like for a second generation person who’s grown up around this?

Talking about it, forcing you into the family business. Are you being held hostage on this podcast right now? 

Olivia: I am free. We speak about freedom over here and I am free. Um, I’m here under my own will. Um, but yeah, it was, it was. It was interesting growing up, right? So I, I have memories of being at Nelson’s seminars, probably not in 1996, but certainly when I was a little bit older, um, and Nelson speaking and telling us not to steal the peas.

We were there for that first day, the intro, which is really the fun, the fun stuff, I imagine. That that we could sit through. So it was very impactful. He was such a great speaker. Very good at keeping the audience’s attention. If you if your eyes drifted off a little bit, like Olivia. And bring it, bring you right back throughout the whole room, um, with questions.

So it was very engaging and you know, it, I feel very fortunate to, to have grown up in this environment and had the opportunity to be mentored by someone who, who is not following the crowd. Right. Because the conventional wisdom does take our eye off the ball. It shows us ways that’s actually giving us.

Giving up control of our money, up control of our cash flow. It’s giving up our ability to actually achieve our goals by taking our eyes off the ball. Um, one of the things we often say is, the easiest way to get someone to do something that’s in their best interest is making it feel like it’s in your best interest, right?

So by focusing on interest rates and rates of return, it takes our eye off the ball and You know, in turn makes us make decisions that aren’t in our best interest. So growing up with my dad, you know, it kind of became instilled to me, not necessarily the life insurance part. Now that’s a totally different language.

Um, but the concepts of, you know, always having your money work for you. And, um, and all these things that we talk about. I mean, I feel very fortunate to have had the opportunities that I’ve had. And. Also have the opportunity to, to bring that forward and think about Nelson’s vision and how people like Tim and you and myself are able to bring that vision forward.

Right? So when Nelson died, his, his vision doesn’t die. His legacy doesn’t die. It continues to move forward because of the impact that we’re able to bring forward with this concept. 

Jeremiah: Love to hear it. Love to hear it. Yeah. So I, I only hope one day I’m assuming Tim that hearing that out of your daughter after maybe she was as hard headed as my little kids are, but they’re little, you know, and one day I was like, if my kids can speak, my daughter’s the oldest, if she can speak like Olivia is doing, then I’d be a proud father.

I’m sure you feel the same way about what she’s learning and how she continues the story. 

Tim: You know, and that’s a great point because It’s been incredible and it’s been incredibly gratifying to see her evolution through this, through this whole process of understanding, you know, it’s, it’s going to be 10 years in September.

And, uh, don’t get me wrong. There’s some days where it seems long, longer than 10 years, but, but no, that’s, that’s, that’s not true. But you know, the, the, the point is just to see how she has evolved as. Not only a like somebody who understands this concept, but also as a young woman as an advisor. I mean, it’s just incredible to have watched that and to think.

That I’ve had some part of that. 

Jeremiah: Very good. Well, I want to, you know, we’ve had a conversation before and it’s, uh, we’ve chalked it up to the archives who knows where it is, but we started to get into some of our background. I know you started asking that as well. So I’d like to explore that again with you.

Take us back to the way you grew up and how you thought about money coming up and. Obviously, that’s a big shift, I’m assuming, from the way your daughter thinks now. So, you know, I could do the same thing, and like, man, when I had my coming of age, my, the awakening, as Nelson would have called it, I was 31, you know, but There was 30 years plus of programming before that.

Tell us how you came up and even how you got into this business. You were already in financial services, helping people, advising people before this. So, you know, what was it like coming up, Tim, in the 19 hundreds? Now Libby don’t know about those dates. . 

Tim: Well, um, so I, I, you know, I was born in, in sixty two, nineteen sixty two and, uh, you know, grew up in the seventies.

You know, the sixties and the seventies. And, uh, we were not by any stretch of the imagination, wealthy. Uh, we were probably not middle class. We were probably on the lower rung of middle class if we were, but in all probability we were below that line. Uh, but we never thought that way and we never felt that it, it was just like we had everything we needed, maybe not everything we wanted and the things that we wanted.

We went out and worked for them. I mean, I’ve, I’ve always had, you know, I was always cutting grass or raking leaves or doing something to make money. And it always seemed that there was always some type of work available. I will say this, the worst job I’ve ever had, uh, there was a, a farmer that lived about three or four miles away from, from where we lived and he was good friends with my dad.

And he would pay me and my brother 10 each to, um, clean the stable or the pen where the bull stayed. And he would do that twice a year, every six months. And I can’t even begin to describe the God awful smell of ammonia and other things that I wouldn’t mention that And I will say this, that smell permeated your skin for days.

Um, but it was 10 bucks and that’s when 10 meant a lot. 10 doesn’t mean a lot because as president Biden said, because of Putin, but, uh, 

Jeremiah: Yeah, I got a different opinion on it than that. But yeah, I mean, it teaches you the value of work. It also teaches you that there’s a, you know, if you can bring value to people, what we do now, you know, bring value to people without the blood, sweat and tears of the bullpen, the literal bullpen.

Um, it’s a completely different chip. So how did you make it from the bullpen, you know, to the advisory table, you know, because every time I drive by, Uh, people who are working outside. Anytime I see men working physically with a shovel, I mean, I get that flashback that you get to the bullpen because any type of digging, shoveling, rocks, moving mulch, piles of making driveways, or spreading, Oh, it’s the worst for me, and I’m just so thankful I’m not there.

More power to the people who enjoy it. Obviously, sympathies. And, uh, my thoughts and prayers to the people who are out there who don’t enjoy it, but that’s the job for 15 year old boys, for sure. In my book. So how did you, you know, how did you transition? 

Tim: Well, you know, I was, I was always pretty good in school.

Um, and you know, I, I, uh, I played football in high school and I wanted to play in college and I got an offer from a small division three school and unbeknownst to me, It was a really good school and, uh, I got a degree in economics and now with economics, you got basically three choices. You got banking, investments, or insurance.

And so I did an internship my senior year with a firm called Dean Witter. And there’s probably a lot of folks that might be listening that might, might recall or remember Dean Witter. They don’t exist anymore, but. Uh, that indicated to me that that was not my cup of tea. And then there was traditional banking and I really never saw myself as a, as a banker, but a good friend of mine, a good friend of our family said, you know, you should try the insurance business because you’re a relationship type person.

And the insurance industry is very relationship oriented. And so I looked into that and, um, sort of. Well, I, I got my start in insurance and luckily for me, this was in the, you know, I graduated college in 84. I started, uh, in March of 85 and within a three or four year period, there used to be a firewall, if you will, theoretically, between the banking industry, the insurance industry and investments.

And. That wall started to come down in the mid to late eighties. And what happened was investment firms were now able to offer insurance and banking banks were out, were able to offer investments in insurance and insurance, uh, advisors or agents were now allowed to offer investments and banking services.

So everybody was doing everything and it, it appeared to me that I would have had the advantage because I was in a relationship oriented business and those other two industries were more transactional. And, you know, retrospectively, I think that that was a really good path for me. Uh, and then how I realized things were going bad because I was given this advice that The industry taught us to give, which was pay down your mortgage as quickly as possible.

Max out your 401k. Pay off your credit cards as quickly as possible. I’m not saying in and of themselves, those things aren’t bad, but in the, in the macro, in the big picture, all of those strategies, put your money out of reach when you need it most. And, uh, I really came to understand this in 1993 at Christmas time.

Uh, We were talking about the good old days and the good old days were the time where we went to pick up my dad’s check and the car wouldn’t start. So we had to get the car towed and all of the embarrassing things that come along with that. And, uh, my mom, I remember saying to my mom, well, why were we there?

Why didn’t you just wait for the next day? And the look she gave me was just sort of like, so incredulous. She said, honey, we live pay to pay. We needed that money, or they were going to turn off the gas or the electricity or something. And, uh, that’s when it, it dawned on me right then and there. I was literally living pay to pay at that stage of my life at 31 years old.

Now. You know, this event happened when I was 10 and now I’m 31 and I’m still in the same spot and I’m making really good money. So it’s not the fact that I was, wasn’t making enough money that was holding me back. It had to be something else. And sure enough, it was how I was using my money. And that’s when I figured some things out, and then kept searching, and that was 93, and by 97, that’s when I, I, I sought out and, and found Nelson, and the rest, as they say, is history.

Jeremiah: And that’s, that, it’s so interesting that, you, you know, the, the philosophers have always said that the teachers appear when the student is ready. You know, and, um, seek and ye shall find, right? That’s biblical. And so we’ve got to be looking for the answers. And what’s interesting to me is, my coming of age, and me and my brother together, uh, around the idea that our dollars don’t have to be given off to third parties and controlled by folks.

We can’t get to them, and in these environments that, oh, there’s gonna benefit you in the long run, but you can’t touch them now, right? Loss of control was basically because We were out here doing all sorts of crazy different things and trying different angles to try to like, there’s got to be a secret of the rich and wealth.

There’s haves and have nots. That’s just the way I thought about it and I said, you know what? Maybe I’ve watched just enough tv. Most of the time you hear the TV ruins kids’ minds. I was like, I’ve watched just enough TV as reality television started to get big in my teen years. No, I mean, surely. I can get to a place where I’m not working.

I’m just on TV. Like these people, I’m famous for being famous. I’m rich for being rich. Something is out there that I don’t understand, surely. And if I work hard enough, maybe I’ll find it. And that’s how it was for me. So the creativity that surrounded me watching TV, like spawned my ability to like, I’m going to go find something.

Cause these Kardashians on you, they ain’t doing nothing. They got lots of money. I’m gonna figure that out. That’s the job I want. I want that job. So, uh, what we were doing, you know, I tell the story from time to time that my brother was, uh, he had just gotten a year or two before we were on, uh, on this kick for infant and banking, trying to read these books and watch these I, he got me kicked off at eBay for selling fake beats by Dre headphones, you know, like that’s what we were doing We were I was trying all sorts of things like I got to figure out how to make money And you start to realize uh, you know the skills of selling something or like you said paying yourself first Really is what infinite banking is really where it starts in this product And that’s why we show people kind of our visuals that we do Is uh, you’ve got to keep the money that you make you were saying the same thing if I make three times What dad made coming up in the 70s and 80s?

And I still don’t keep it. It doesn’t matter. It’s still paycheck to paycheck. Money goes in, money goes right back out. And that intermediary system, where do we place our money first is just going to change the whole game. And if we understand the components of, if you place it in this product, we always alliterate everything around here.

If we place it in this product for this process, you know, all these features come along with it. And that completely changes it. We’re like, Oh, well, it’s not just about getting high returns on investment. And these long term uncontrollable volatile assets, we hope they’re assets anyway, it’s controlling the, where you put it in the first place before you get in all that crazy stuff.

And then you have all the w the world, it becomes your oyster. It’s open to you for the possibility. And so it’s interesting for us. We grew up in a military family. And dad was enlisted in the army. We’re both born overseas and Money wasn’t a topic. It really we’re all open to it And now dad’s passed but mom is remarried to an airman and we can have these conversations within our family It’s not taboo to talk about money We just never talked about it coming up because it was a quick conversation.

Uh, we don’t have any, so what’s there to talk about, you know? Uh, but we, we, you know, and, uh, I told my mother one time when I was in college, you know, mom, I’m just really like not interested in being where you are at your age, I want to make so much more money. And I was on the verge of thinking that was going to get popped in the mouth by saying something disrespectful.

And she responded with, No, I highly suggest you do that. I highly suggest you do better than me. You know, I was like, oh good Well, i’m glad I have your permission because I got to go find something. I’m i’m sick of being broke. So, uh, Realizing that over time being exposed to infinite banking like so many people that we talk to we do a lot of social media We do a lot of speaking on stages people Don’t dig deep enough.

That’s not what social media is always for sometimes it’s for the quick hits and the short form content You But you really need to think back and listen to that piece again. If you can really pay yourself first and this environment in which you put your money is all that matters. So you can control the flow of cash.

Who’s getting it, where it’s coming from, where it goes back to, does it come back to its home base and keep growing for you? People need to pay attention to that because if you do that, it changes everything. And now I can understand what the heck Nelson meant when he said you got a tailwind. I did not know before.

Tim: Yeah. It’s so, you know, it’s so awesome because as you were saying that when I first got into business, there was a, a really good insurance agent out of, uh, I think it was Canton, Ohio, his name was John Savage and John Savage used to draw two circles on a page, uh, on a, on a sheet of paper. And. He would draw this circle on the left and towards the bottom of the circle, he would draw a line and then he would take the circle on the right and near the top of the circle, he would draw a line.

And he said, basically there are two types of people in the world on the left. These people spend and then save what is left and there’s never anything left.

But the people on the right, they save first. And spend the difference

and he would love to make that presentation to a young person Because he would look that person in the eyes and say now let me uh, let me explain to you Why this is important to you because these people on the left always Work for the people on the right 

Jeremiah: And 

Tim: he said, if that’s what you want, then keep doing what you’re doing.

But if eventually you want people to work for you, you need to save money first. I mean, that was his presentation and he did incredibly well. But I just look back and think, okay, he did well, but how about the impact that he had on people? Are 

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Tim: Uh, as you were saying, you know, talking about saving first, That, that’s exactly what came to mind. And that’s, that goes back for me to probably 1985 or 1986.

Olivia: Exactly. And when I think about that and what impact we’re able to make in this position, I think about, you know, when you, when you visualize those two circles and saving first for a lot of people that feels like giving up their lifestyle. And yeah, I’m sure it may give up a portion of your lifestyle, but what we’re actually able to do a lot of the times Is use the cash flow that’s already being used in efficiently and and use it in a more efficient manner to make up that savings and to.

Save first and that’s what’s really able to make an impact that I see By making that money more efficient and you know, not necessarily having to pinch the cash flow and and and feel Feel like you can’t afford things necessarily because we’re all using money. We’re all spending money We’re all buying things But that’s not the point.

The point is how are you using your money? Is it as efficient as possible and working for you at all times? 

Jeremiah: And it’s, and it’s such a paradigm shift. We all know that because when we’re talking to people, you have to start them a lot of times from where they are and back them up because they’re so ingrained in something else, an investment strategy.

I get people ask me all the time, you know, Hey, well, I see you on TikTok. I go live. We train people in group sessions, things like that. We do social media around what we call the save and spend system. And they said, Hey, well, I’ve got some money, you know, I sold my house. I had a guy this weekend, just this weekend, you know, last week, as we’re recording this in June, summer of 2024, you know, Olivia, you and I, and all our people were hanging out in California, Santa Barbara at the Ritz, you know, um, way better than the bullpens of Tim’s day back in the 1900s.

And, uh, I got home and I was at an event, so I’m still MC. And I was at an event. They asked me to do this fundraiser and, and, and help everybody raise money for meals on wheels. You know, everybody knows meals on wheels. And I was having a good time. I was sitting there with a DJ and he said, you know, I just sold my family house.

Parents have now passed. I sold the family house. I’m an only child. So I’ve got the money was able to pay off my debt. You know, what a legacy. Great thing there. I took care of that. And I’m trying to figure out, you know, I’m about to put this money in a CD. You know, what do you do? With money you got any ideas and I said boy do I have the slideshow for you My friend is we’re gonna sit here at this event for a couple of hours where everybody’s on the lake It was an outdoor event.

So he and I got to chat for a while And like you said, it’s the first thing that I want this guy to understand Is not great investment strategies. That’s where he was going. That’s where he wanted to talk about. I said, why don’t you make sure we keep the money first? Why don’t you make sure it doesn’t go away?

It’s not at risk. You don’t lose it Why don’t we start there? And so what i’m saying like you’re saying Olivia, we got to back him up. I gotta say hold on before we put it at risk. What were you thinking? Why don’t we keep it? What if I can show you how to always have it? and grow and cashflow, but you never lose it.

He’s like, show me more. So we had a great conversation and now he is rethinking a complete shift of the 150, 000 that he has, you know, and he didn’t know what to do with it. Why? Not because he’s not a good dude. Not because his parents didn’t love him. Didn’t leave him some money. Didn’t leave him the house to sell.

Cause he had no idea that you don’t go first into risk. You don’t go first into those categories. You actually keep the money and put it in an efficient place first. It’s somewhere right now. It wasn’t at the DJ booth with us. What if I can show you where to keep it in your possession? And it always works for you.

We can leverage off of it and it always gets better. And it’s income tax free. And it’s, you know, not subject to judgment and liens and it’ll pass on to your 10 year old that you have. And he’s like, What is this magical, mystical place? I said, well, you’ve heard of it. You’ve always known what it was and you don’t understand it because neither did I, nobody talks about it like this.

And let me tell you a little bit more about my favorite friend over here in boring old 200 year life insurance. You know, I blew his mind after a couple of minutes and uh, you have to, but you have to relate him to where he is and where, cause he’s a hardworking guy, but he’d never had money. And now that he has money, he’s like, I’m asking random emcees at the lake.

What do you think I should do with it? And I said, boy, I got, I got something 

Tim: for you. 

Jeremiah: Check this out, 

Tim: you 

Jeremiah: know. 

Tim: That’s awesome. And you know, it’s what I loved about what you said, Jeremiah, is that, you know, you’re basically meeting him where he is. In other words, at this stage in his life. And and it’s it’s so critical that we do that because we can’t speed up the process.

Unless the people are ready to move forward and and that’s one of the things that I think probably one of the greatest things that I’ve learned over the years. You really can’t force the process. It’s got to. Sort of marinate and germinate through that person and eventually it does or it doesn’t but either way it’s okay 

Jeremiah: yeah, you said it you said exactly right eventually it does or it doesn’t and sometimes in the world of sales and advisory in the world of Common sense, you know with sometimes it doesn’t people aren’t gonna get it or they’re not ready for it at the time So can’t force it on them.

They have to come to their own awakening because Like we were saying earlier, if they figure it out, well, then I don’t have to tell him anything. Nelson probably said it like this, and I’ve watched the way he says some things. I’m sure, and Tim can correct me. He’s, he’s the disciple and I’m the descendant, but.

If people know what’s going on, they’ll know what to do. So help them know what’s going on. You know what I’m saying? So I just tell them what’s going on. And I said, you know what to do with that? He got it. You know, I said, yeah, let me watch your stuff. I’m gonna call you and all that stuff. Cause I told him what was going on.

Tim: Well, you know, it’s funny too, Jeremiah, because if you look in at Nelson’s book, right, he tells you maybe not in clear words, but he tells you that you do not need life insurance. To become, you know, to, to utilize infinite banking. And he shows you in the book when he compares, you know, the, the, the twin sisters, we call it the CD method versus life insurance.

You, you could get out, come out ahead just using a deposit account at the bank versus life insurance because there are so many people who have, uh, preconceived notions about life insurance that probably are not correct. And that’s okay. Right? We’re not here to convert people. We’re here to help them.

Jeremiah: Yeah, we can’t help people that don’t want to be helped. We’re helping to open the eyes of the people who want to change and realize they can have that control. 

Tim: That is exactly the point. And it’s so amazing where people get frustrated because the person didn’t catch it. Well, they didn’t catch it. That’s okay.

Their family is going to pay the price, but the value to me, the biggest value to me of infinite banking is that we’ve implemented this in our lives and it has made an incredible difference. We literally overnight, you go from a mindset of scarcity. To a mindset of abundance. 

Jeremiah: It’s beautiful. And you know, it’s funny that you say that, of course, we talked about those twin sisters inside Nelson’s book and the best this guy knew of, and the idea he gave me at the DJ booth for what he was planning to do with the money.

Was a CD and I said, well, hey, you’re gonna get a great rate these days, you know, compared to historically in the last 10 years or so Olivia don’t know about these old days, but yeah, you could get five and a half percent in the CD for sure, whatever bank you might be using. However, what if we compared that to and we have a little comparison chart and I was able to sit at the DJ booth and show him we had all day.

You know, is there a death benefit? No. Is there principal protection? Well, yes, there is principal protection. Is there guaranteed growth? Yes, CDs have that as well, you know Is it going to be tax free at withdrawal time or use time? Oh, no, not exactly, you know And so we were able to go back and forth because Like you said, Tim, a lot of folks maybe who don’t look at us deeply enough, who don’t listen to your podcast or mine deeply enough, think that we’re anti these other financial products.

Not necessarily. We just have to understand where we put money first, where it’s most efficient. And if you’d like to borrow against this cash value, DJ Josh, and put it in a CD, go for it, man. But maybe you should think about putting it inside the life insurance. First, then you can put it in your seat.

Tim: Exactly. Yeah, that’s so awesome. So Jeremiah, one of the things that I love is your explanation of the cash value as it relates to the death benefit. And I see you got your cup set up. So can you take us through that, that, uh, explanation? 

Jeremiah: Oh, happy to. I, so happens I have my cups right here. Like you mentioned, I love it.

Don’t leave home without it, folks. Don’t leave home without it. You got to be ready for the three cups set up. It is part of how we explain the product and then get into the process of infinite banking around here at the cash compound. So yes, a few years into it, I’ll give you the origin story too. You know, my brother is helping people after market.

We started teaming up with our friend at the money multiplier. You know, obviously we’re all. Closely connected with our great friends over there, also practitioners in the Nelson Nash Institute. We were with them from the beginning, and my brother’s doing all the aftermarket, what we might call policy servicing, right, in the industry.

We’re just helping people with their cash value, and changing their address, and understanding where to pay these loans back, or whatever they’re trying to do. And I’m kind of on the front end, more the marketing, and maybe the figurehead of trying to get people, new people, interested in this idea. My brother comes to me right about four years ago, I think at this point now, early 2020, and he says, man, I’m getting so frustrated.

I’m on the phone with these people all the time. They have policies. They’ve started infinite banking. They want to become small p practitioners of doing this concept effectively for their family. And everybody thinks they’re withdrawing their own money. They don’t understand. I don’t know how to explain to them that we’re not taking money from the politics.

They’re like, how in the world can it keep compounding, or why would it get bigger? Why would I pay interest on my own money? All these types of questions. Dave Ramsey’s sneaking in somehow. He must be undermining all these people we’re talking to. And I’ve got to figure out, man, I’ve got to show them, like, it’s coming from a different bucket.

And I said, well, why don’t we just put a different bucket in front of them? So that’s where the three cup setup came from. We got to show them that it’s coming from a different bucket So cup number one the red cup is premium Sometimes we add the word deposit on it because we’re going to use this as a bank We got to save that up and we’re storing it for later, but premium.

Those are dollars We give an entrance company right olivia. It’s going to be interactive. You can be miss kirk here. You can you can be My person. So we’re going to pay the insurance company money. Give them money. If you give dollars to the grocery store, you get groceries. If you give dollars to the gas station, you get gas.

If you give dollars to an insurance company, what do you get? 

Olivia: You 

Jeremiah: get the benefit. You get a policy, right? You get paperwork. You get peace of mind. You get a pool of cash for later. All right, I’m Baptist. Everything’s alliterated. There’s a lot of peace there. Okay. We give them premium. We now get a benefit.

Life insurance, that pool of cash is the benefit. That’s cup three. Death benefit. Cup one, red. Cup three, benefit. A little dollars, if you can see us out there, a little of our dollars buys a lot of theirs. Right? That’s how Jacob State Farm works too, right? We give them a little premium, it buys a lot of car insurance, and we wait, like a good neighbor, he’ll show up, if a tree lands on our car.

Well, we now have purchased something from the insurance company, because this type of life insurance we want to use is whole life insurance, Olivia. Whole life. How long do you think that lasts? 

Olivia: I think it lasts for my whole life. 

Jeremiah: Your whole life. Very good. Some people like to say, you know, it lasts until you’re 30 years.

I said, no, no, you might be thinking term on that one. You said, oh, it lasts until you’re 100. I said, well, maybe, but maybe, what if you lived to 101? See, whole life insurance lasts your whole life. It doesn’t last till you’re a hundred if you die tomorrow, it lasts till tomorrow, because that’s your whole life.

So we bought something from them that must pay out, doesn’t expire or go away. And since we bought this pool of money for our friends, family, church, and charity, whoever you want, we bought it, but we haven’t paid for all of it yet. It’s kind of like your house. Every time you pay more, as you live longer, there’s more and more equity.

That’s cup number two cash value is how much equity you’ve got it’s paid up paid off or paid for It’s how much of the benefit we bought that we can get access to it’s equity You don’t like your house and you can get to that lines of credit key locks, right? Is this making sense to people like oh, yes See, we’ve bought this big pool of money for our family cash value in the green cup in the middle is now liquid and leverageable And if we take money out of cup two olivia We’re going to take a big gulp out of this cup.

How much of the money we contributed to this policy came out? 

Olivia: None. 

Jeremiah: None! We didn’t put any money in Cup 2. This is the insurance company’s money, and we borrowed against the value that we purchased. Our money is still in Cup 1. Let me tell you about all the guarantees in Cup 1. Guarantees in Cup 1 is your money doesn’t go down or backwards.

Not an investment. It’s insurance. Those are different things. Completely. Number two, it’s guaranteed to get bigger. Of course, we knew it bought a big pool of money. And number three, it’s guaranteed to continue to compound and grow. So the amount of money that we gave them has guaranteed growth on it.

They’ll give it to us in the paperwork. They want to put guarantees at the top. And they’ll say, Hey, there’s more and more and more of our money that you have access to cash value, green cup from what you bought, blue cup, that’s benefit. And the final thing is, Premiums are level. It doesn’t cost any more to do this.

We’re going to be locking you in. You give us this money, it’ll compound and grow forever. So the three cups set up right there in its essence is that premium cup one by depth benefit cup three cash values. How much of that depth benefit is liquid or leverageable. If you don’t want to use it, Olivia, totally fine.

Your family’s going to get it. But if you want to call and say, can I have the money I bought? They’re going to say, Hey, you can’t trick us. You’re not dead. If you call us, you can’t have the money you bought, but you can get through the equity. You can get to cash value and borrow against it if you like.

Then we got our little shot glass here. This is where my baptist background breaks down. We got a little shot glass here. I know we can’t have that. It’s a little communion glass here, but right here represents what we’re going to get each and every year from a mutual company. It’s dividends. Each and every year mutual companies give us a little piece of the profit.

They don’t have stockholders to pay out to. Nobody’s buying these shares on the market. So they let us be part owners. They declare dividends as profits and they say, where do you want them? And I said, Hey, I like money with my money. So just pour it on top of the money I’ve contributed to you in cup one, the red one and more premium buys us what Olivia?

Olivia: More death benefits. 

Jeremiah: More death benefit, which means we’re going to have more cash value as well. So it just keeps getting bigger and better all the time. So that’s how we set up the product for people. And that’s a great visual for social media. It’s a great conversation starter. And so it always helps them, like you mentioned, when people go, wait, okay, so hold on.

Now we’re taking these dollars out of cash value, barring against them or whatever, like, you know, but, you know, do we have to pay for that? Is there interest on that or whatever, you know? And I said, remember, our dollars are still earning constant compounding. Everybody liked it. Hear the word uninterrupted compound interest, but that’s not alliterated enough for me.

So constant compounding on our dollars, amortized interest on borrowing against their money. We’re not borrowing our money out. That would be a withdrawal. If we take it out, it won’t compound anymore. Just like with the bank. We’re not going to take ours out. That’d be dumb. We’ll do that later, maybe in retirement or something like that.

Nelson will show you page 8283 in the book. We’re going to borrow against it right here. By using our policy as collateral, being able to get cash value loans from the insurance company, see it’s a different pool. And that really sets people up for success in their brain at first, because if they do not, I heard, you know, recently we saw each other again at the NNI Institute’s annual event in Vegas this year, had so much fun with that.

We got to speak at that one, my brother and I, but, uh, we, maybe it was there that I heard somebody say, Hey, you know, if the, uh, If you understand what’s going on, if you don’t understand what’s going on, the numbers don’t matter. If you do understand what’s going on, the numbers won’t matter. Because what we’re not talking about here is the contribution of premium you’d like to do.

I don’t know. Whatever makes sense for you. We’re not there yet. We’re just explaining what’s going on. If you know what’s going on, then you’ll know how much you and your family should be doing. But I can’t tell you that at the beginning. If you don’t know what’s going on, it just sounds like really, really expensive insurance.

Tim: Jeremiah, I love that, uh, presentation or explanation. It is so easy to understand and yet so powerful. Thanks for sharing that. 

Jeremiah: Yeah, you’re welcome. Thank you. Let’s give a shout out to my brother. He’s busy on the phone right now. I get to converse with. People like you, he’s probably helping somebody understand it right now.

So from our frustration and through our pain, maybe you had the same things, you know, coming along, helping people walk through this idea. That’s where this was born out of. It was born out of necessity to fix the problem because we realized the problem wasn’t in the product. It wasn’t in the process. The problem was in everybody’s mind.

Every time they’re like, I don’t, why wouldn’t the world would I borrow my own money? We hear that every day. Yeah. How would I borrow my own money? Or, if my money’s earning 3, 4, 5, how can I borrow at 5, 6, 7 and come out on top? Or like, whoa, do we have something to explain to you? I don’t know who came up with this, Isaac Newton Galileo?

But compound interest is stronger than amortized interest. Let me show you, you know, so because people are like, this makes no sense because there never been bankers. We’ve given up that banking opportunity to third parties and commercial bank. And we’ve not been bankers ourselves. And once we go back to controlling banking function in our life, numbers don’t matter anymore.

Oh, I get it. I control it. And it always goes up. Doesn’t even matter. 

Tim: Nelson used to have a way. When, uh, I would call him and say, Hey, I’m, I’m, I’m having a hard time getting these illustrations to work out. And he would say, Tim, you’re getting hung up on the numbers. And when I would talk to him in person and I would ask him those types of questions, he would stare down over his glasses at me and say, Tim, you’re getting hung up on the numbers.

But I used to love that, uh, well, I didn’t love it, but I love the way he did it. 

Jeremiah: We can look back on it finally at this point, right? So yeah, 

Olivia: well, a lot of times it is so easy We’re always trained to look at the numbers right by conventional wisdom Look at the numbers look at the interest rate look at the rate of return And again, that’s what takes our eyes off the ball and the ball is the bigger picture of how we’re using our money How we’re able to make our money more efficient And how we could have it Actually, they’re on a guaranteed basis to help achieve all of our financial goals all throughout our life.

And that’s really the process that we talk about and teach people, right? Because it’s not stationary and, you know, I feel I feel better having a guaranteed rather than a maybe, especially when it comes to, you know, the things that I want to achieve, right? 

Jeremiah: 100%. And that’s not just investment. That is the combination of what insurance companies got crazy about her and back in Tim’s day and the eighties and Nelson’s day when he started this getting into universal life policies, all the flexibility, the market access or the market exposure to it.

And we’ve got to fight that fight with people as well. And it’s beautiful because if you go back to the fundamentals and the guarantees and the growth and the access and the control and the tax freedom and all those types of things, and you can still start there. When people want to talk about universal life products, index, universal life products, retirement rate of return.

I’m like, hold on, let’s back it up again. Let’s back it up again. 

Tim: You know, and, and Nelson, and he says in the book, right? It’s not about interest rates. It’s and it’s not. And that’s the key. This is all about being in control. And one of the things that we always say to our, our P our folks is. You are either going to be controlled by the process or you will be in control of the process.

It’s your choice. It makes no difference to us. 

Jeremiah: I like that quote. I’m writing that one down.

Well, let me, uh, get a little bit of a taste. What’s next for you guys here in business? How do you operate your business? Who do you work with, you know, and what are people looking for when they come to you guys to, uh, Continue their banking experience. 

Tim: Well, so we, we like working with business owners. We think that we could have the most impact with business owners.

And we’ve done a lot of research and found that, according to Intuit, uh, the Intuit Corporation. They, they found that 61 percent of small business owners struggle with cash flow and 69 percent of small business owners either lose sleep or sleep less due to cash flow concerns. And in 39 years of working with business owners, I found that most or all of these cashflow issues are self inflicted.

So if you think about the impact that we could have on business by showing them. Number one, how to make their cashflow more efficient. Number two, how to save in an area that they own and control. And then number three, how to borrow against that money and pay interest back to an entity that they own and control.

I mean, let’s face it. Business owners went into business to be in control of their destiny. And they are in most aspects, except on the banking slash financing piece of their business. And now when you offer them this, we call it a life vest or a life jacket.

They want to know more and they want to be able to utilize that because they want more control. And, uh, so that’s where we we’ve had a lot of impact. 

Jeremiah: I love it. Well, we are, we want to be like you. When we grow up, we’ve been in business now for almost seven years or so helping people do this process after we started about nine and a half years ago.

And that’s what we do with the cash compound. We talk about code cracking cashflow or cracking the code to cashflow, teaching people starting right here at the save and spend system, right? We teach people how to save your money, spend someone else’s OPM. The insurance company’s got it there for you. And, uh, we are really going to, uh, we think change individuals and then families, business owners, and the culture, you know, and, uh, there’s a lot of people that came from where we came from or look like us.

Who we don’t think understand this well, so we’re finding them left and right through our channels out there So that’s what we’re doing at the cash compound. Appreciate you guys teaming up with us for this conversation and Enjoying the experience with you over and over again. We’ll do it again for sure but You know We’ve talked and have known each other now for two years or so and got to be friends just this year Um And this has been a great experience for us.

Appreciate you guys leading the way. Absolutely. 

Tim: No, it’s, it’s been, it’s been for us as well. And you know, every time I speak with you, Jeremiah, I come away better for it and also smarter for it. So thank you very much. Appreciate it. And, uh, you and your brother are doing God’s work. So just continue doing it.

Jeremiah: Appreciate you guys. Thank you.