Debt Management

Access Your Money on Demand

As business owners, we all know how important it is to have access to cash when you really need it. Are you thinking about taking a policy loan from your life insurance policy to help grow and expand your business?

Access to capital is the lifeblood of any business. Your business cannot continue to operate, and it certainly cannot grow without access to capital. But many times because cash flow is cyclical, we run into situations where our cash flow is not flowing in as quickly or on a timely basis as we need it. And there are the opportunities that you have that you may not even be considering where you can borrow against the cash value of your life insurance to keep your business going or to help your business to continue to grow.

Traditional means of financing require that you ask for permission by applying and ultimately qualifying on the bank’s terms to obtain access to their capital. But the reason life insurance loans are more preferred is because you are not applying and qualifying. You are literally giving an order.

 

The loan provision that exists in your policy is a contractual obligation, the insurance company has to honor your request for the loan. You’re not asking permission. You are literally giving an order. And that is not a small distinction. That’s why our business owner clients love borrowing against their life insurance. They are not qualifying. It doesn’t matter what their credit score is, It doesn’t matter how much money they have in the bank. It doesn’t matter what their cash flow is. The insurance company, when you call them up, they say, “Yes, sir. Where do you want us to send the money?”

So with these life insurance policy loans, they’re unstructured loans. So it’s suggested that you pay at least the interest back every year, because if you don’t, it will tack on to the balance of your loan. But other than that, you’re not required to make payments back to this policy loan. You get to determine the terms of these loans.

And that, again, is a key distinction. You’re in control of the whole process. You determine if or when you pay back the loan if or when you pay the interest. What that means is you can literally fit the payment back to the insurance company, into your cash flow. You can do it on your terms, whatever makes it best for you.

We’ve had a lot of clients who start paying back their policy loans and then they stop because cash flow got bad. They literally stop paying back their loans until a time in the future when their situation or the economic environment changed.

So you may be wondering, how does this the logistically work with the life insurance policy, the individual and the business entity? And the way we help our clients structure this is by first obtaining a policy loan to the individual as the policy owner. And then the individual is able to loan their business the money and the business repays the individual.

One of the key things that jumps out to a lot of our clients is the fact that they are completely in control of this entire process from the beginning till the end, and that is the power of utilizing the cash value in your life insurance to loan money to your business.

It’s our mission to help as many business owners as possible to make the best financial decisions possible. And a simple way to do that is to be in control of your financial process. So how could we help you make your money more efficient and put you in the most control of your cash flow?

Whether you have existing insurance policy is or you’re looking to get some put in place to achieve these financial goals or other financial goals like business succession, business continuation, deferred compensation, or other business financial goals, check out our website at Tier1Capital.com. We’d be happy to help you get started with our process.

Feel free to schedule your free strategy session today or check out our webinar to see exactly how we put this process to work for our clients, The Four Steps to Financial Freedom.

And remember, it’s not how much money you make. It’s how much money you keep that really matters.

Preventing Lost Opportunity Cost

What are you doing that’s holding you back financially? When it comes to finances, no one wakes up in the morning and says, “Hey, how could I mess up my financial future today?” No. We all wake up and say, “Hey, how can I move myself financially forward?”

When it comes to finances, there are so many tricks and strategies that all claim to move forward. But the question is how do you make your money more efficient and how do you maintain liquidity use and control of your money?

We all need to navigate the headwinds that we all face, whether we’re business owners and we’re trying to navigate the headwinds that we face on a daily basis to move our company forward, or we’re a family and we’re trying to move ourselves forward financially. We all face the same headwinds. There’s the need for access to money, but if we don’t have money or more importantly, if we have money saved and then we need to access that money for an emergency or to take advantage of an opportunity, we’re going to drain down the tank. We’re going to use that money. And again, we’re never going to see the interest that we don’t earn on that money.

Then there are things like, let’s say you’re saving, there’s going to be taxes on your savings and investments. There’s going to be losses perhaps on your investment. There’s certainly going to be fees on those investments. All of those things are headwinds that we face on a daily basis. And then if we pay a tax, we pay a fee or we experience a loss, then there’s the lost opportunity cost. What we could have earned on that money had we not paid those fees or hit those headwinds or had those losses.

This is why we constantly talk about making your money more efficient. How do we work with what you have to get you as far as possible financially, whether in your family or your business?

Let’s say you have a plane that could fly 100 miles per hour, but you’re flying into a 345 mile per hour headwind. If your plane could only move 100 miles per hour, but you’re flying into that headwind, you’re going nowhere, and certainly nowhere fast. In fact, you’re not going nowhere, you’re literally going backwards.

So the facts are the facts. Your plane could only move 100 miles per hour and we have no control over the wind. But what if, instead of having a headwind, we adjusted the direction we were going and used it as a tailwind to propel us forward?

And that’s literally the type of planning we can help you with or the type of planning we designed for our clients on a daily basis.

We know that the winds are a given. The headwinds that we face are there. How can we work with those headwinds to make sure that we’re taking advantage of them so that now we’re using that wind to propel us forward rather than to prevent us from moving forward?

 

If you’re ready to make your cash and your cash flow more efficient and take advantage of the winds, please be sure to visit our website at Tier1Capital.com to schedule your free strategy session today.

Or if you’d like to learn more about how we put this process to work for our clients, check out our Four Steps to Financial Freedom Webinar right on our website.

And remember, it’s not how much money you make. It’s how much money you keep that really matters.

Saving vs Investing

In today’s ever changing economic environment, there are a few questions that remain the same. How do you save for your retirement and achieve your financial goals along the way? There are so many things that are out of our control: interest rates, the stock market, government spending. Not to mention inflation.

But what isn’t changing are our financial goals. We still want to get married. We still want a new car. We still want to go out to eat when we want to go out to eat. How do we achieve all of these financial goals when there is so much out of our control?

Well, conventional wisdom would tell us to just take on more risk. More risk equals more return. But that is not always the case as we’re experiencing right now. The answer may be in saving. Saving, not investing.

And you may be wondering what’s the difference? Well, investments inherently have risk savings, do not. The tool we use to help our clients achieve their goals without taking on tons of risk is especially designed whole life insurance policy designed for cash accumulation for several reasons, and one being you’re able to access that money to achieve your financial goals without taking on the risk of the market and everything else that’s out there.

Because your money is safe inside that insurance policy. You could also access that money to reinvest in the market after the market went down. That puts you in control instead of you being at the mercy of people that you don’t even know.

You see, most savings vehicles that are presented to us have risk, whether it’s a retirement plan at work or a brokerage account or other mutual funds. They all include risk, but not everyone wants to take on that risk, and not everyone wants to be at the mercy of everything that’s going on in the world to achieve their financial goals. Not to mention, once you access that money, you have tax consequences possible penalties, and you don’t know how much you’re actually going to be earning on that money. And also think of it this way. Once you access that money, it’s no longer earning interest for you.

Our process aims to put you in control of your cash flow and to make your money as efficient as possible so you don’t have to take on tons of risk to achieve your financial goals.

We believe there’s more opportunity in avoiding the losses than trying to pick the winners. And we’re not only talking about market losses, we’re talking about the losses of interest paid to others or taxes paid to the government. They’re all losses that reduce the value of our money.

If you’d like to get started with a cash flow analysis to see how we could help make your money more efficient, check out our website at Tier1Capital.com and schedule your free strategy session today.

Or if you’re interested in learning more about how we put this process to work for our clients, check out our webinar, The Four Steps to Financial Freedom.

And remember, it’s not how much money you make. It’s how much money you keep that really matters.

How Can I Reach My Financial Goals?

There are so many financial tools available to us between IRAs, 401ks, brokerage accounts, loans, mortgages. The list goes on and on. The question remains, are these tools moving us towards our financial goals or keeping us further away from our financial goals? This question needs to be answered frequently. It’s not a one size fits all or one decision fits your entire life type situation.

Think of it this way. The products, the 401k, the IRA, the mortgage, are the tools. The strategy is what the tool is doing for you. How are you using that tool? Very often when we’re meeting with clients and prospects, we ask the question, Is this strategy bringing you closer to or further away from your goals?

And a lot of times the people will look at us and say, “What do you mean?” The choices we’re making with the financial tool, we don’t even think about it. We just do it because it sounds good or everybody else is doing it. That’s not good enough. If you have stated goals and stated objectives that you’re trying to meet.

Let’s take the 401k for an example. Most employers, if they offer a 401k, also offer automatic enrollment. By not making a decision. You’re making the decision to enroll in this 401k plan. How is this moving you towards your financial goals and is it going to help you achieve your short term and long term financial goals?

In most cases, it will help you achieve retirement or help supplement it at least. But what about your other financial goals, like sending your kids to college or buying a new house or going on a vacation? All of these goals need to be addressed and the 401k is not the tool that will help you get there. But when people use this automatic enrollment and are only saving in their 401k, what happens is their money is not accessible when they want to achieve these other financial goals. And if you access that money before age 59 and a half, if you’re able to, you’re going to pay a penalty and that money is going to be fully taxable as income.

The other option may be to take a 401k loan, but that has other rules associated with it, like the five year repayment schedule and the fact that your money can’t grow while you have it withdrawn through that loan feature.

In addition to that, you’re now paying taxes twice on the same money. You might be asking, how could that be? Very simply, when you pay back a 401k loan, you pay it back with after tax dollars. So you already paid tax on that money. Then you put it towards your 401k loan and now when you go to retire and you take the money out of the 401k, you’re going to pay tax again. You’re literally paying tax twice on the same dollar. Is that your goal and objective?

What you want to do when you’re doing financial planning is making sure your plan is flexible enough to achieve each and every single one of your financial goals, even if they change. Instead of putting money in different buckets for retirement, for paying for college, for paying for your vacation, for putting a down payment on your house. You want your money to be flexible so you’re able to achieve all of these goals throughout your life and you’re not stuck with tax consequences for each one.

Several years ago, we met with a family who had the goals of having a great retirement with a brand new mountain home, and they also wanted to send their children to college. After looking at their financial situation, it became apparent that what they were doing wasn’t exactly in line with what they wanted to achieve, and it certainly wasn’t the most efficient method.

But with some simple shifts in their cash flow, we were able to help them save for retirement, fully fund their children’s private college educations and build their mountain home so they didn’t have to wait until retirement. They were able to achieve that goal 12 years sooner than they anticipated.

But here’s the best part. By helping them to obtain the mountain home 12 years sooner or not having to wait till retirement in order to build it, the husband had an opportunity to work with his father every weekend to build that mountain home. He and his dad literally hammered every single nail into that cabin.

Unfortunately, several years later, the father died. He had cancer and died at a very young age. The husband came to me and said, “Hey, I want to thank you for everything you did to help us to build that mountain home.” And I said, “Well, you know, you put the money away.” He goes, “No, you don’t get it. I will never be able to get that time back. And if I waited until I retired in order to build that cabin, I never would have had that opportunity. So thank you for showing us how to get to our goal much, much sooner.”

You see, these are the things that money can’t buy. And this is why it’s so important to have the flexibility within your financial plan to achieve your goals all along the way.

Because life doesn’t wait and it’s not about saving for retirement or saving for college. It’s about those moments in your everyday life that you can never get back.

 

This couple didn’t change their outflows by one penny, but they were able to build the home 12 years sooner than when they were on track or when they thought they could do it. All because we looked at things through a lens that showed them free up their cash flow and do it in a way where they can achieve all of their goals and objectives.

If you’d like to see exactly how we put this process to work for our clients, check out our website. We have a free webinar, The Four Steps to Financial Freedom, where we do a deep dive on how we put this process to work.

Also, if you’re ready to get started with our process or have some specific questions, feel free to visit our website at Tier1Capital.com to schedule your free strategy session today.

And remember, it’s not how much money you make. It’s how much money you keep that really matters.

Are You Feeling Financially Frustrated?

Cash and cash flow, the lifeblood to any small business or family. We all have experienced the feeling of being stuck and frustrated for not having access to cash when we really need it.

Traditional financial planning tends to give away control of our cash flow, whether it’s funding your retirement account, paying off your mortgage as soon as possible, or being in a race to pay off your consumer debt. All of these actions leave us in less and less control of our cash flow each and every single month. But the need for liquid cash to achieve our financial goals has never been greater. With inflation at an all time high and the market fluctuating every single day.

Not to mention that if you own a small business, the uncertainty and the possible turmoil that’s coming down the road, we need to prepare to make sure that we’re able to weather that storm so that we can get through it and be in a better position than we were going in.

 

But the question is, how do you achieve that goal, especially with interest rates rising each and every single month?

So keep in mind, because interest rates are rising, it’s not necessarily a bad thing. It’s a bad thing if you’re borrowing, and that’s your method of accessing capital in the markets. However, if you’re a saver and interest rates rise, doesn’t that mean that you’ll be earning more interest on your savings?

This is the reason why we help our clients focus on building capital, building liquid cash so that they have access to that money. They don’t have to beg, borrow and steal in order to move forward and to grow their business. They can do it by accessing their own money on their own terms. No questions asked, whenever they want.

There are several reasons why a small business owner would want and need access to capital.

Number one, to run their operation so that they can turn a profit.

Number two, to stay competitive, maybe reinvest in equipment or a plant.

Number three, to hire a new or a key employee to grow their business.

And number four, in general, just to create a higher rate of return on their capital.

In general, having access to capital allows businesses to invest in their business and run it as efficiently as possible. Keep in mind that businesses that have access to their own capital have a much higher success rate than those who don’t have access to their own capital and have to therefore pay for access to somebody else’s capital.

We use specially designed whole life insurance policies designed for cash accumulation to help our clients meet their financial goals, like growing their business without taking on more risk. We do this in creative ways that allow us to integrate key person insurance as well as business succession planning.

If you’d like to get started with the business succession plan, key person insurance or building cash for your business to help it grow and expand, especially in economic turmoil. Visit our website at Tier1Capital.com and feel free to schedule your free strategy session.

Also, if you want to see exactly how we put this process to work for our clients, check out our webinar, The Four Steps to Financial Freedom.

And remember, it’s not how much money you make. It’s how much money you keep that really matters.

How Risky is Your Financial Plan?

Traditional financial planning centers on taking various levels of risk. We’re told the higher the risk, the higher the reward. But have you ever taken on a great deal of risk and not received a very hefty reward? Or taken on a small degree of risk and lost a lot of money?

And furthermore, where is it written that in order to make money, you need to lose 40, 50, 60 or even 70% of your wealth? This is exactly why we focus with our planning on avoiding the losses and making your money as efficient as possible.

When it comes to financial planning, we like to think of it more like an art than a science. There’s more than one right way to build and maintain wealth in your family. Not everyone needs to take on a ton of risk to become financially successful. In fact, a lot of people don’t even want to take risk.

That’s why we focus on avoiding the losses instead of picking the winners. And when we say avoiding the losses, it means more than just avoiding the market losses. We’re talking about losing opportunity costs, losing money to taxes, losing money to interest. It’s all of those things, but more importantly, losing control of your cash flow. And we always say whoever controls your cash flow controls your life.

Imagine you had a leaky bucket, a bucket with a ton of holes in it, and you had your income streaming in as the water. Wouldn’t it make more sense to plug the holes in the leaky bucket before turning up the income?

Think about this. Does it make sense to take a lot of risk on a small amount of money to hopefully get a high rate of return on that small amount of money? Or does it make more sense to make your money more efficient, so even if you’re earning a smaller rate of return, you’re guaranteed to earn that rate of return, and it’s on a larger pool of money.

 

And by getting a small rate of return on a large pool of money, you actually make your money more efficient because, number one, you’re avoiding the losses. And number two, you’re not taking risk.

Our process uses specially designed whole life insurance policies to help make your cash flow more efficient. We build up a pool of cash in these policies to help achieve your financial goals and make your money more efficient. We always talk about control, because controlling your cash flow and controlling your money and having liquidity use and control of that money is invaluable. And when you have control of your money and you have control over your cash flow, you literally have control over your life. And the feeling of freedom and independence can never be measured.

If you’d like to get started with a specially designed, whole life insurance policy designed for cash accumulation and mitigating risk, be sure to check out our website at Tier1Capital.com to schedule your free strategy session today.

Or if you’d like to learn more about exactly how we put this process to work for our clients, check out our webinar, The Four Steps of Financial Freedom.

And remember, it’s not how much money you make. It’s how much money you keep that really matters.

How Can My Business Escape Inflation?

As business owners, there is so much that’s uncertain. Are we going to expand our business or is it going to shrink? But what happens when the government needs more money? And how do you react, as a business owner, to protect your most precious asset, your business?

We’re currently over $31 trillion in debt and interest rates have risen and they’re going to continue to rise in the near future. That means more of the revenue that our government takes in through taxes is going to be allocated to paying interest on the debt. That has nothing to do with the government programs, government subsidies and of course, the military protection that the government affords for us.

Now, keep this in mind. The government only has two tools in its toolbox when it comes to producing more money. They could react legislatively by increasing taxes, or by printing more money. If we’re currently $31 trillion in debt and interest rates are rising and part of our issue is that more and more of the government’s revenue is going towards paying the debt. Printing more money is not going to reduce that situation. It’s actually going to make it worse.

Every single time a dollar is printed by the government, it increases inflation. And inflation is known as the stealth tax. Inflation does not discriminate. It affects everybody. Low income, middle income, high income. Everybody is affected by the effects of inflation.

 

Now more than ever, the buying power of our dollar has significantly decreased recently. So the question remains, how, as a business owner, can you protect yourself from all of these things that are outside of our control?

Now, one of the things we really didn’t drill down on today is the fact that, okay, if the government doesn’t print money, how are they going to address their need for more revenue? And that is to increase taxes. How do you protect your money or your business from an increase in taxes as well as how do you protect your money or your business from the ravaging effects of inflation?

One way you could help protect your cash and your business and the way we help our clients is with a specially designed whole life insurance policy designed for cash accumulation. This could help combat the effect of inflation and taxes on your business and your cash flow. You see these specially designed whole life insurance policies allow you to pay the premiums with after tax dollars. But once the money’s in that policy, it’s able to grow on a tax favored basis.

Then you can borrow against the cash value of that policy and deploy that money in your business, either to pay operational expenses or to expand and take advantage of a huge opportunity that you didn’t want to miss out on.

Either way, it allows your money to be in two places at once. It’s still earning interest in the policy, but now you’ve deployed it in your business to do whatever you need it to do to grow your business.

So you have the opportunity to earn a reasonable rate of return within that policy and earn an external rate of return within your business. That’s called multi duty dollars. That’s getting $1 to do the job of two, three or $4. And by doing that, think of this, what’s the rate of return of getting $1 to do two jobs? Well, it’s almost infinite. And that’s the key. That’s what allows you to offset the ravaging effects of inflation.

Recently, more and more business owners are sitting on cash and sort of paralyzed as to what to do. They know inflation is hitting them, but they also want to protect their money from taxes. So, we’re seeing them wanting to utilize their money in a more efficient and effective way so that they can get the most out of their money and also protect their business.

We always say it’s not what you buy, it’s how you pay for it that really matters. If you’re looking to protect your assets and your business from the effects of taxation and inflation, be sure to visit our website at Tier1Capital.com. We’d love to chat with you. Make sure to schedule your free strategy session today.

If you’d like to see exactly how we put this process to work for our clients, check out our webinar at the Four Steps to Financial Freedom.

And remember, it’s not how much money you make. It’s how much money you keep that really matters.

How Does the Debt Cycle Affect Me?

Do you realize that every single purchase we make is financed? Whether we financed traditionally or pay cash, we’re either paying interest or giving it up. How do we make our money as efficient as possible and put the debt cycle to work for us?

You’ve heard me say it before and I’ll be sure to say it again.

Whoever controls your cash flow, controls your life.

So how do you regain control of your cash flow and regain more and more of your financial freedom?

Well, the first step is to understand where your money is flowing to or, more importantly, what’s the beginning of the debt cycle. So here’s an example. Let’s say you’re a business owner. Probably when you started your business, you did not have a lot of cash or access to a lot of capital. So you want to be in this business and what do you do? You go and borrow some money. Well, the next step is you take that money and you use it to capitalize your business. You’re actually deploying that money to grow your business.

The third step is now that the money is deployed, you utilize it to generate a profit. And now with those profits, you go to the fourth step and you use those profits to pay back the loan. Here’s the problem, because all of your cash flow was going towards the loan. Now, when that loans paid off and you want to expand your business, now you’ve got to go back and borrow again. And this process continues. And that’s why we call it the debt cycle.

Because the beginning and the end are the same. It’s so hard to get out of this debt cycle. It becomes a perpetual cycle that happens with business owners because they never take the time to capitalize their own assets so they could finally break the cycle. There’s only one way out.

What if there was a way to take a portion of the money that’s going towards debt to build your own asset and capitalize your own asset so you could finally break that cycle without impacting your cash flow. Would you want to know about that process?

Well, the fact of the matter is the process does exist and it’s been around for over 200 years. Conventional wisdom teaches us that debt is bad. And so it’s often that we see business owners trying to repay their debt as soon as possible. But what happens when you do that is you’re giving up control of all of your cash flow to the bank. And then when it’s time to expand your business again in the future, you’re forced to go back and borrow because you didn’t take the extra step of building your own asset instead of building the banks.

We’re going to share with you a practical example. Several years ago, we met with a business owner who had started a business about 15 years prior, and they had no money. So they borrowed everything to capitalize their business. But as time went by, they became more and more successful and they paid off that 20 year loan in about ten years.

The problem was they were taking all of their cashflow to pay that debt off as quickly as possible. So when it came time to expand their business, they didn’t have any access to additional capital. So they had to borrow again. And my question to them was very simple. When you went back to the bank to open up your second store, whose money did they give you? And all we heard was silence in the boardroom.

Eventually, the president of the company said, “Oh my gosh, they gave us our own money back.” And the CFO said, “Yeah, and they charged us interest and fees in order to get our own money.” That is clearly the debt cycle and we can break you from that just by becoming aware of where your money is flowing and how to set up a pool of money that you own and control so that you could access that money to expand your business.

Now that you’re aware of the debt cycle, the next step is to learn how to put this process to work for you and interrupt it, so that you could be in more control of your cash flow and make your cash flow even more efficient. You’re building that asset for yourself so you’re less dependent on banks and credit companies.

If you’re looking to get started with this process, be sure to visit our website at Tier1Capital.com and feel free to schedule your free strategy session today.

If you’d like to learn more about exactly how we use this process, check out our free webinar, The Four Steps to Financial Freedom right on our home page.

And remember, it’s not how much money you make. It’s how much money you keep that really matters.

Making Money Work For You

Have you noticed that when you follow the conventional wisdom, when it comes to finance, it could leave you feeling stuck financially? Paying off your credit cards, maxing out your 401k’s, paying off your mortgage as soon as possible, all of these things leave you more and more out of control of your cash flow.

But what happens when you need to access cash for a major capital expenditure? Whether it’s a major capital purchase, a medical or financial emergency, the bottom line is when you follow conventional wisdom, your money is inaccessible when you need it most.

Conventional wisdom teaches us that we shouldn’t be working for our money, but we should be putting our money to work for us. Whether it’s real estate, a brokerage account or a retirement account, all of these places are leaving our money inaccessible, even though they’re “working for us.”

Even worse, you put your money in the bank earning 0.0, and you’re not even keeping up with inflation. You want to put your money to work for you, your family, and your business. The problem is, when you follow conventional wisdom, your money is inaccessible and you’re literally paying somebody to oversee that money. They’re making profits off of that money, and you’re taking all the risk. And, when you need the money the most, you can’t get it.

When you follow conventional wisdom strategies, you may make money or you may lose money, but there are two things for certain: you will pay fees and you will pay taxes.

By following conventional wisdom, we’re parking our money in these accounts and it’s inaccessible when we need it the most. The money stops flowing. But how do we allow ourselves to still earn interest on our money and still earn continuous compounding of that interest and make the purchases that all of us need to make throughout our lives?

That’s why we develop the process that keeps your money flowing and more importantly, keeps your money flowing towards you so that you could be in a financial situation where you could make the purchases and still earn interest on your money.

We use specially designed whole life insurance policies designed for cash accumulation to help put our clients back in control of their cash flow. So whether it’s earning interest on your money or paying off debt or making major capital purchases, your money is always working for you.

If you don’t have a policy yet and you’re looking to get started with our process, check out our website at Tier1Capital.com today. Feel free to schedule your free strategy session or if you’d like to learn more about how this process works, check out our free webinar, The Four Steps to Financial Freedom, right on our homepage.

And remember, it’s not how much money you make. It’s how much money you keep that really matters.

Using My Life Insurance to get Financially Ahead

A lot of times when we’re designing a whole life policy designed for cash accumulations, people will get hung up on the break even point, the time where the cash value is greater than the premiums paid.

But today, we’re going to talk about how you could use your policy before that break even point so you could get financially ahead, even before you break even.

You’ve heard us say it before and you’ll hear us say it again.

It’s not all about the internal rate of return of your policy. It’s how you can put this policy to work for you to achieve your financial goals.

And putting the policy to work for you is critical in helping you to achieve financial independence. And the reason why is really simple.

Every time you take a loan from the insurance company, you are creating financial freedom in your life. Those loans are unstructured. What does that mean? It means you don’t get a coupon booklet, you don’t get a monthly invoice. You actually are in charge of structuring the loan repayment process, and that is complete control.

So what are some ways you can put this policy to work for you before the break even point within those first ten policy years? Well, initially, any small debts that you have, whether it’s credit cards or the you know, the last remaining year or two on a car payment, you can borrow against your cash value, pay off that loan. And instead of having that payment going away from you, you now have that money, that payment, flowing back towards you, into your policy.

You’re going to make the same payment you were making to Ford Motor Credit, back to your policy. The only difference is this you don’t own Ford Motor Credit, you own your policy. So when you make the monthly payment back to the policy, you can use that money again somewhere down the line.

That’s right. You’re going to be rebuilding that cash value by repaying your loan and you’re going to be building that cash value from within by paying that monthly or annual premium.

So now you have two payments per month working for you. You have the loan repayment, which you can access again through the loan feature, and you have your premium which is building and growing your cash value.

You see every single purchase we make and this life is financed, whether we finance traditional through a bank and pay interest to them, or we pay cash and give up the earning potential or growth potential on that money. This is simple finance 101. We’re either going to pay up, by financing, or give up, by paying cash. There are no exceptions.

So the question becomes, how do we put this law of nature to work for us? And the answer is with a specially designed, whole life insurance policy designed for cash accumulation. Why? Because we have guaranteed access to that money, and it doesn’t interrupt the continuous compound of interest within that policy. As long as you place it with the right company.

So keep this in mind. Even though you’re using the money to pay off some debt or to make a purchase, your money is still earning interest for you. Uninterrupted compound interest is working for you.

A lot of times we meet with people who didn’t buy life insurance policies for cash accumulation. They weren’t designed for the infinite banking process, but they have a policy that might be ten, 12, 15, 20 years old, even, and they have a lot of cash in there and they can access that cash through the loan feature. They never considered it because they were never told that they can do it.

The point is they have access to money that they can get on their terms and they can utilize that money to make the rest of their money more efficient and make their cash flow more efficient, where they can borrow against their policy, pay off an outside debt, and have that monthly payment now coming back to them by redirecting the payment back to their policy.

Now, if you have a whole life insurance policy, you have a policy loan provision and if you’ve had that policy for a long time, chances are there are some cash value built up within that policy. Not as much as it would have been with a specially designed life insurance policy designed for cash accumulation. But because of the second promise that insurance company makes to have the cash value equal to the death benefit at the age of maturity, there has to be cash accumulation within that policy. And this is key to this whole process.

You could access that cash through a collateralized loan. So your money is still in your policy. You get a separate loan from the insurance company. The insurance company puts a lean against the cash value. And now you can utilize this money that you get through the loan to pay off outside debts or to make purchases. It’s almost as if your money is in two places at once because, quite literally, it is. It’s always in your policy working and you can access that equity through a loan feature.

Now we’ve seen our clients use their policy loans for all sorts of things because, quite frankly, there’s no limits. There’s no qualifications for obtaining these loans as long as there’s cash value in the policy, you have access to the loan. You can make major capital purchases like a wedding, cars, vacation. You could pay off debt, you could send your kids to college using these policies.

The only limitations are in your imagination on how you want to put this policy to work for you.

There are many examples of famous people who have access to cash value in their life insurance to start their now famous business. One great example is Walt Disney. No bank would loan him money to buy swampland in Central Florida, but he had a vision. He also had a sizable life insurance policy that he was able to borrow against the cash value to start purchasing land in central Florida. And we all know how that ended up. He created the happiest place on earth, Disney World.

If you’d like to get started with a specially designed, whole life insurance policy designed for cash accumulation and some ideas on how to put the policy to work for you, even before it breaks even. Check out our website at Tier1Capital.com to get started with a free strategy session today.

Or if you’d like to learn more about how we put this process to work for our clients, check out our free webinar, The Four Steps to Financial Freedom.

And remember, it’s not how much money you make. It’s how much money you keep that really matters.