Tier 1 Capital Blog

As a business owner, so much focus is put on building your business. How could you get that business up and running, generating profits for you and your family? Well, because of that, 90% of a business owner’s wealth is actually tied up within their business. But you can’t necessarily spend that money. It’s tied up in inventory and equipment and paying expenses. Today we’re going to talk about the importance of building wealth outside of the business so that you could both benefit your family and your business to experience the financial freedom that comes with actually being a business owner.

So much advice that’s given to business owners is actually putting them out of control of their cash flow. When it comes to cash flow, it’s important to make sure you’re in control of it because that’s how you’re able to build a pool of cash that you’re able to access because with access to cash flow comes the feeling of financial freedom which so many business owners are after.

You know, and 83% of business owners basically feel the stress from running the business is more than the freedom that they wanted when they went into business. Well, money problems are a big issue, especially when it comes to sleep at night, right? If you’re not able to pay your bills, you’re not sleeping. You’re trying to come up with a solution as to how you could get by and how you could continue to move forward with this huge burden on your shoulders.

So imagine having a business that’s worth a million dollars and further imagine having a million dollars of capital outside the business. That gives you so many advantages going forward. And they’re two separate things. It’s the same value, but having the million dollars value on your business, it’s being rich on paper. It’s being able to say, “Okay, I’m a millionaire. My business is worth this amount.” But it doesn’t feel like it, right? Because you can’t put your hands on any of it because it’s tied up in so many things. Whether it’s inventory, whether it’s expenses, whether it’s equipment, all of those things, they’re valuable, but only if you liquidate. And the problem is if you liquidate, you don’t have the business.

Well, kind of. Yeah. So now if you don’t have the business, you don’t have the income or the revenue that’s generated from the business. And that creates a big problem. But again, putting yourself in a position where you have access to capital outside the business that’s equal or greater than the value of the business. Now, that’s where the rubber meets the road.

But here’s the problem. Everybody says, “Well, I don’t have enough money to do that.” Right? The cash flow that you’re earning within the business is enough to keep the business going. Not much more. Right? Otherwise, you wouldn’t be in this position. But the reality is you do have the wherewithal to be able to create that second pile of money.

So, we said this in a blogpost. You want to view your business as a firecracker hut. Everything in that business you want protected so that it doesn’t explode. But you also want to create a second firecracker hut that’s completely liquid. So that if the business does explode, your retirement, your standard of living, your ability to get to retirement is not predicated on selling that firecracker hut that just exploded.

Exactly. So when it comes to positioning yourself, it’s real simple. The first step is to change your mindset. Change your mindset from getting out of debt as soon as possible or investing all of your profits back into the business or doing other things that really aren’t putting you in control of that money and instead redirecting that money to an area where you own and control. You still have the same net worth, right? You still have the same assets. You still have the same cash flow, but the difference is you now have access to a pool of cash. And that’s where that financial security and freedom comes from.

And we put this in practice and we’ve been putting this in practice for years for our clients. Recently, we had one of our clients who had been with us for about 30 years. He decided to retire. And it was probably a little premature, but what gave him the ability to pull the trigger and decide to retire was the fact that he was sitting on several million dollars of liquid capital that he had built up over the years with our advice. And because of that, he didn’t have to get the best offer on his business.

Now, here’s the irony. Because he had that money, he always turned away people who were trying to buy his business at a huge discount because they felt and thought he might want to get out of business. The reality was he wasn’t under any duress to sell the business. But all of a sudden, one day, somebody gave him an offer literally that he couldn’t refuse. And because he was in such a great financial position outside of the business, he was able to wait around to get the absolute best offer. Now, it doesn’t always happen that way, but it does happen when you have access to capital.

And this is what we talk about all the time. People who have access to money have access to opportunities. If you don’t have access to cash, the opportunities may pass you by. Or in this case, he would have taken a lesser opportunity because he would have been desperate for cash because the only money that he had or the only wealth that he had would have been tied up within the business.

Exactly. So now because he had that second firecracker hut, all of a sudden he didn’t have to take those lowball offers. And lo and behold, somebody came by with again an offer that knocked his socks off. And they pulled the trigger and the next thing you know, he’s living in retirement.

So, when it comes to building that wealth outside of your business while still running your business, it can feel challenging, especially when 61% of business owners are feeling chronic or cyclical cash flow issues. But what it comes down to is changing those daily disciplines of how you are using your money to get that money back inside of your control. You’re able to regain control of that finance function. You’re able to regain control of that cash flow and make better decisions for yourself and your business so that you’re able to build that pool of money on the outside while still having the value of your business on the inside.

And that’s a great point because you may be sitting there saying, “Well, geez, Tim or Olivia, we would love to be able to build that second pile of money, but we’re having cash flow problems ourselves. How do we do this? We can’t bring in more money.” Well, you don’t need to. The point is, the money is there. It’s just hidden in plain sight. And our process shows you how to uncover that cash flow that’s being used inefficiently. You think it’s moving you forward. It’s actually holding you back from having that second pile of money, that second firecracker hut, if you will, that is outside the value of your business.

If you’d like to learn more about how to build this wealth outside your business, hop on our calendar. Visit www.tier1capital.com and click the “Schedule Your Free Strategy Session” button to get started today. We’d be happy to chat with you about your specific situation, your specific cash flow, and how we could help you move forward to put yourself, your business, and your family in a more secure financial position. Remember: It’s not how much money you make, it’s how much money you keep that really matters.

Are you thinking about implementing the Infinite Banking Concept and deciding how exactly to go about it? You may be wondering, do I really need a life insurance policy in order to achieve this? That’s exactly what we’re going to talk about today.

So let’s jump right into it. Do we actually need life insurance policies to accomplish the Infinite Banking Concept? And I think another question we could address is, what happens if I can’t get a policy? What if I’m uninsurable? How do I go about implementing?

That’s a great question. And really, let’s look at it. Basically, the answer is no, you do not need a life insurance policy to be in control of the financing function in your life. You could control the financing function through a home equity line of credit, or a business credit line, or a margin account, or your 401(k), certainly a life insurance policy, a savings account, a CD—whatever you use as the depository becomes your source of capital.

Now, to truly be in control, you’ve got to make sure you’re controlling all the pieces. And here’s what I would say: a credit line or a home equity line of credit, you’re not in control, because you’ve got to go to the bank and get approval to be able to tap into the equity, right? So some people will be knocked out there as well. If you’re disabled, if you don’t have a steady job, if you don’t make enough income, if you don’t have enough equity, then you can’t be in control of that function, right? Knockouts—because the bank is not going to approve you. So that’s one thing.

But here’s the other piece, the other side of that coin, which is really what happens: a credit line or home equity line of credit—the bank has the ability to call those loans in whenever. And people say, “Oh, well, that’s not going to happen.” Well, it did. It happened in 2008. If you had a credit line with certain banks and they didn’t like what was going on in the economy, you got a letter. And the letter said, “Hey, you’ve got 60 days to seek a new banking relationship.”

Basically, think about it. If you had a $50,000 credit line and you had $45,000 out on that line, you had to come up with $45,000 during the financial crisis. So again, that’s where they always say there’s an old saying, “A banker is somebody who will sell you an umbrella when it’s sunny and take it back when it starts to rain.” And that’s really where the genesis of that statement came from.

You could also use a margin account—a stock portfolio, right? But then we have the risk associated with the underlying investments. And if the underlying investment goes down for whatever reason, then you can get what’s known as a margin call, where you have to pay back principal and interest. So that makes that a little bit more risky.

401(k)? You’re limited. You can only take 50% of the value as a loan of your 401(k), up to $50,000. And the loan has to be paid back in a stipulated period. Again, you’re not in control. You’re not in control of the terms. You’re not in control of the interest rates. You’re not in control of anything. You’re not in control of the conditions of paying back that loan. Less than ideal, but doable if necessary.

And then the savings account—you can go to a savings account. It’s interesting. Nelson Nash clearly showed this in his book Becoming Your Own Banker. He had a comparison between using Infinite Banking in a policy and using Infinite Banking with a savings account. And he showed a 4.5% savings account versus a policy.

Now, here’s the key. For the first 13 years, the savings account was a better place to do this. Because you were in control of the function, you were earning interest—all of those things. But Nelson was trained as a forester, and so he thought long term. By the time he finished his analysis, the life insurance ended up with over $700,000 more in value—not death benefit, value—versus the CD or the savings account. Then on top of that, you get the death benefit.

So Nelson clearly showed, number one: you don’t need life insurance to become your own banker, to use Infinite Banking. But number two: he showed why life insurance is the best place or the best depository for the implementation of Infinite Banking.

Now, with the savings account though, when you take money, they don’t have a loan feature with savings accounts. So if you access the money, does that interrupt the compounding in his example?

No, but what you have to do is go to the bank each time you want a loan and get approval to collateralize your savings account. So again, you’re not in control of that process, because the bank could come back and say, “Well, you know, the economic conditions in the country were different when you started this process. Now it’s not as favorable. So we’re not…”—they don’t have to approve you.

But again, here’s why Nelson liked life insurance—because the loan provision was a contractual guarantee. It was in the policy that the company has to loan money to you. Well, gee, that puts you in control of the function. And that’s what it was all about. It wasn’t about interest rates. It wasn’t about “I have more money for 13 years.” It was “I want to be in control.”

Because not being in control—he found out what it’s like to not be in control of the financing function. That’s where he was up at 2 and 3:00 in the morning, on his knees praying, “Lord, help me find a way out of this financial prison I made for myself.” And boom, the answer was life insurance.

So Nelson vetted all of those other depositories, those other sources of capital, and he came to the conclusion that life insurance was the best place. And in his terminology, “What better place than free people coming to an agreement under their own free will?” And that’s between the life insurance company and the owner. Exactly.

So the long and the short of it is, there are options if you don’t want to use a life insurance policy to implement this concept. This concept is about being in control of your money, making your money as efficient as possible.

We just did a video recently on what is the Infinite Banking Concept. Go ahead and check that out if you’re interested in learning more there. But yeah, we’re able to help with life insurance. And I do believe that life insurance is one of the most efficient ways to implement this concept, because it’s a closed system that you have full liquidity, use, and control over. And that’s what this concept really is all about—control and freedom.

And there’s one other piece to this—it’s the death benefit. The legacy. You can make all these purchases over your lifetime—and we all will, right? You’re not going to stop spending money. And then when you die, somebody’s going to benefit from your foresight. What better way? What better system?

Well, there’s no better system, especially from a legacy and death benefit perspective. So thanks for bringing that up.

If you’d like to learn more about how to implement Infinite Banking and take control of your financial future, we invite you to schedule a free strategy session with our team. We’ll take a look at your unique situation and help you explore whether life insurance or another option makes the most sense for your goals. Visit www.tier1capital.com and click the “Schedule Your Free Strategy Session” button to get started today and remember: It’s not how much money you make, it’s how much money you keep that really matters.

When it comes to financial freedom, most people find themselves starting from one place: debt. Whether it’s credit cards, auto loans, student loans, or just the cost of living, debt can feel like a never-ending cycle. So how do you manage debt while building wealth? That’s exactly what we’re diving into today.

Americans are carrying more debt than ever before. Credit card balances alone have surpassed $1.16 trillion for the first time in history. With our modern “subscription lifestyle,” where small recurring payments add up quickly, it’s easy to lose control of your cash flow. Most people are told to pay off debt first and then start saving. But that strategy can keep you stuck in the same cycle. We believe in something different start saving while paying down debt. Even small contributions to your savings now can be the difference between breaking the cycle or staying trapped in it. The truth is, without savings, you’ll always rely on more debt when unexpected expenses come up. And life always happens. Having a pool of money you control helps prevent future debt and gives you financial breathing room.

One major reason people stay stuck in debt is because they don’t have access to their own money. If every dollar you make is going toward paying off credit cards, you’re not building any safety net. When an emergency hits, the only option is to go back into debt.

It becomes a cycle: get out of debt, fall back in, and repeat. You’re never really getting ahead.

After COVID, we saw massive lifestyle inflation. Many people started spending more due to the influx of government money and now find it hard to adjust to rising prices. Doing a simple audit of your monthly expenses especially recurring ones like subscriptions can uncover hidden cash you can redirect toward savings or debt reduction.

Here’s a staggering statistic: over 80% of the U.S. dollars in circulation today were printed in just the last four years. That means the value of each dollar has decreased dramatically. It’s harder than ever to get ahead using outdated financial strategies. If all your income is going toward debt payments, you’re not saving. If all your income is going toward saving, your debt continues to grow because of interest. So what’s the solution? You need a hybrid approach pay down your debt while building savings. This combination gives you the flexibility and control to stop relying on credit and start financing your life on your terms between Good Debt and Bad Debt.

One of the first steps in taking control of your finances is analyzing the type of debt you carry.

Good debt typically helps you grow or build wealth, like a mortgage or business loan. Bad debt, like high-interest credit cards or consumer financing, generally adds no long-term value. The goal is to keep the good debt and eliminate the bad. Not all debt is bad, and not all debt is good. Being able to tell the difference is key. Every time you buy something, you’re financing it whether you realize it or not. You either borrow and pay interest, or you pay cash and give up the ability to earn interest. That’s called opportunity cost. So even when you pay in cash, there’s a hidden cost: you lose the potential growth of that money. Understanding opportunity cost can help you make smarter choices about how you finance your lifestyle and major purchases.

Ask yourself, “Does it feel more efficient to finance this and keep control of my cash, or should I give up that cash and reduce my liquidity?” More often than not, using someone else’s money (in a controlled, smart way) can be the better choice especially if you keep your own money working for you. Leverage is the concept of using the least amount of your money to control the greatest amount of assets. It’s how the wealthy grow their wealth faster and more efficiently. If you can maintain control of both the debt and the asset, you’re in a position to grow. That’s the power of smart leverage. You’re building an asset with one hand, paying down a liability with the other, but you never give up control of your money in the process.

This approach lets you save, borrow, and grow wealth at the same time. Your dollars become more efficient doing two or even three jobs at once. It may sound counterintuitive, but it’s how real wealth is built.

Traditional financial advisors often focus on assets under management meaning they want to help you grow your investments. But what if you don’t have savings yet? What if you’re still in debt? Most advisors will tell you to pay off debt first, then come back when you’re ready to invest. But that doesn’t help you now.

Our approach is different. We work with you from where you are. Whether you’re able to save 5%, 10%, or 20% of your income, we help you get started and adjust your plan as your situation improves. You can start building savings now, even while you’re still paying down debt. You don’t have to wait until your finances are perfect to start improving them. You just have to start.

If you want to learn how to apply these debt management and wealth-building strategies to your own situation, visit our website at tier1capital.com and schedule your free strategy session.

We’ll help you:

• Evaluate your current debt
• Find inefficiencies in your cash flow
• Create a plan to build savings and pay off debt—simultaneously

You don’t have to keep struggling with debt. There’s a better way, and it starts with making your money more efficient.

Thank you so much for reading, and remember:

It’s not how much money you make. It’s how much money you keep that really matters.

When it comes time to pass on your business interest, it’s critical to do it in a way that’s both cash flow-friendly and tax-efficient. In this post, we’re diving into a strategy most business owners overlook but one that can make all the difference when it’s time to exit or transition ownership.

For many business owners, talking about succession is uncomfortable it feels distant or even morbid. But the sooner you plan, the more effective and seamless your business transition will be.

According to the Exit Planning Institute:

• 74% of business owners want to pass on their business.
• But only 18% have a plan that’s been communicated to those involved.

That’s a huge disconnect.

To make matters more urgent, 80–90% of a business owner’s wealth is typically tied up in the business itself. Without a solid strategy, you risk getting only 24 cents on the dollar for every dollar of value you’ve built in your business. Life insurance is often misunderstood but in the context of business planning, it’s a powerful tool. Think of it as “dollars for future delivery.” Depending on the type of policy, you can build cash value while funding your plan. This means:

• You maintain liquidity, use, and control of your money.
• You’re not sacrificing your business’s growth in the process.
• You’re actually building a pool of cash you can access along the way.

And that pool can be used to grow or operate the business not just fund the future transition. Here’s the beautiful part: with life insurance, you’re essentially purchasing future liquidity at a discount paying pennies on the dollar each year in the form of premiums.

This means:

• You build access to capital.
• You create a funded succession plan.
• And you strengthen your business along the way.

It’s not just protection it’s a business growth strategy. The death benefit ensures that, when the business owner passes, there’s guaranteed cash available to buy out their equity and smoothly transfer ownership. In short, the event that causes the problem (death) is also the trigger that activates the solution (insurance payout).-Life Example: The Cost of Not Planning

Let’s look at a true story.

A third-generation local business failed due to poor succession planning. The founder left everything to his spouse, who had never worked in the company. His two sons ran the business, and his two daughters weren’t involved.

When the mother passed away, estate taxes kicked in, and the sons had to buy out their sisters. With no liquidity and no plan, they had to borrow from the bank. Everything went fine until the 2008 financial crisis. The bank called the loans. The business couldn’t pay. It went bankrupt.

As a result:

• The family lost the business.
• Their five sons lost their jobs and careers.
• 150+ employees lost their livelihoods.

All because there was no succession plan and no insurance to fund the transfer.Two-Part Succession Solution: Planning + Funding. Creating a plan is just the first step. Funding the plan is what brings it to life. And here’s the good news the funding doesn’t have to come from new obligations. We typically find the money for premiums within your existing cash flow by identifying inefficiencies and redirecting them.

In most cases, the money you think is moving your business forward is actually holding you back. We help you reallocate that money to fund your succession strategy without adding financial strain. So instead of ignoring a problem because it feels too expensive to fix, we help you fix it with the resources you already have. Unlike other insurance strategies that lock up your premiums, this approach allows you to retain control of your cash. As you build the policy:

• You’re creating a pool of capital you can leverage.
• You can use that cash to grow the business, cover cyclical cash flow issues, or seize opportunities.
• All while securing your eventual exit or transfer.

It’s a win-win strategy that improves your financial position now and in the future.

If you want to learn more about putting these strategies to work for your business and your family, visit tier1capital.com and schedule your free strategy session today. We’ll help you uncover inefficiencies, build your plan, and fund it all while improving your cash flow and peace of mind. And remember: It’s not how much money you make. It’s how much money you keep that really matters.

As a successful entrepreneur, it’s easy to feel like we have everything figured out. But the reality is we never truly do. There’s always someone out there who knows a little more or sometimes a lot more than we do in specific areas. Today, we’re talking about the value of financial mentorship for entrepreneurs.

No one person knows everything. That’s why it’s so important to have people around you who have more knowledge and experience in different areas. As an entrepreneur, you need a team around you. You’re great at what you do but how do you bring in others who are great at what they do, so everyone can help each other succeed? The bottom line is simple: better teamwork leads to better results.

No one has the market cornered on great ideas. Take taxes, for example. The U.S. tax code is over 14,000 pages long and no one person understands it all. But there are people who specialize in specific sections and know them better than most.

We see this all the time with business owners who rely heavily on just their CPA or attorney. Now, that’s not necessarily a bad thing but sometimes, those advisors don’t want to admit they don’t know something. This is especially true in the financial services industry. There are countless approaches to personal and business finance and just as many opinions on what works best.

Lawyers are excellent at law. CPAs are great with taxes specifically, the areas they focus on. But there are other CPAs who specialize in different parts of the tax code. So, how do you find the right people who align with your goals and bring them together to help you make the best financial decisions?

Here’s the challenge: You’ve got someone handling the legal side of your business. Someone else focused on taxes. And another advisor managing the finance side. But they’re all working in their own corners, disconnected from one another.

We call this the Three Blind Mice approach. The legal advisor doesn’t know what the tax or finance advisor is doing. The tax advisor doesn’t know what legal and finance are doing. And the finance advisor doesn’t know what tax and legal are doing. They’re all giving you advice maybe even accurate advice based on limited information. And here’s the curse of being an entrepreneur: We tend to put people in boxes, and mentally limit them to only one role. But that mindset can cause problems over time. So what’s the solution?

Bring your team together. Make sure everyone is aligned and communicating. That way, each advisor can give better, more tailored guidance based not just on their own knowledge, but also on what the rest of your team is doing.

Here’s how we look at it: You, the client, are the head coach. Your legal advisor might be the offensive line. Your finance expert is the running back. Your tax pro could be the quarterback. We’re applying for the role of offensive coordinator the one who pulls it all together and ensures everything runs smoothly. That approach is way more effective than keeping people stuck in silos. And the truth is, a lot of our specialties overlap. We know a bit about everything but we’re not the experts. Only the experts are the experts. So it’s essential to find the right ones and make sure they’re working together to move you forward.

Let me tell you a quick story. We met a business owner about 7 or 8 years ago. He said: “I’ve got two financial advisors and a CPA I meet with monthly. If there was anything important I needed to know, they would’ve told me.” We simply said: “Nobody has the market cornered on good ideas. Maybe we can offer a fresh perspective something that could benefit you and even help your existing advisors.” Sure enough, the strategy we recommended was completely different from what his other advisors were suggesting. In the end, he became a client. His CPA became a client and even his attorney became a client. Why? Because our approach is built specifically for entrepreneurs.

We look at everything through the lens of control. Will this financial decision give you more control or less control? And control means this: Liquidity. Use. Control of your money.
That way, you can build up a pool of cash and leverage it to pursue your goals without disrupting all the other pieces of your plan.

Now, here’s another common belief among entrepreneurs: “If I just land one big deal, it’ll solve all my problems.” And when that deal does come through, sure things may feel better, for a little while.
But if you don’t use that cash efficiently and strategically, you’ll find yourself right back where you started. You have to plug the holes in your leaky bucket and that’s exactly what our approach helps business owners do. Many people believe that earning more income will fix their finances. But if you have inefficiencies in your cash flow or leaks in your “circle of wealth” those problems won’t go away. In fact, they grow as your income grows. That’s why it’s so important to start now to fix the inefficiencies and start keeping more of your money. That way, you’ll build real financial security as your business grows.

If you’d like to learn more about how to put these strategies to work for your business and your family, visit us at tier1capital.com. We’d love you to schedule a free strategy session where we look at your specific situation and talk about how to help you regain control. And remember, It’s not how much money you make. It’s how much money you keep that really matters.

When it comes to growing and scaling your business, there’s a ton of information out there. Today, we’re going to talk about five definitive strategies to scale your business and to make it grow going forward.

When it comes to scaling your business, there’s a delicate balance between that growth and making sure you have enough cash flow to sustain the operations of the business along the way. There’s no guarantee your business is going to be around 5, 10, 15, 20 years from today, but if you have a long-term mindset, that puts you in a position to weather the storms, if you will, that are going to come your way as a business owner.

So a lot of times, business owners are thinking day to day, which they have to. They have to be quick on their feet, making sure they’re putting out all the fires so that their business can persevere through those storms. But it’s important to also step back and look at things on a larger scale. How could I move my business forward this year, in five years, in 10 years? What steps need to be taken, and what steps can I take today to make sure that’s going to happen?

We get sort of caught up in putting out the fires, and that becomes our job almost. But as a business owner, we also have to think when we’re putting out fires, we’re working in the business. But we also have to work on the business doing the long-range planning, making sure that our business is set up for the long term. Especially as a business owner, you need to think about how you’re going to monetize the business at the end of the road, right? What planning could be put in place today to put you in a position where you’re able to monetize this business to fund your retirement, for example?

So that you know, again, thinking long-term, you have to think of all the plans that need to be in place: your exit plan, your succession plan, maybe a key person retention plan. These are all the long-term things that need to occur to make sure that your business is going to be around for the long term. Because if we don’t have the key people in place, the business isn’t going to be worth as much. If we don’t have the exit or succession planning in place, we’re not going to be able to get as much out of the business as you put into it to sustain your lifestyle throughout your retirement.

How could we use other people’s money to help our business grow?

As a business owner, we don’t necessarily have piles of cash set aside to grow the business. And if we do, it may not make the most sense to invest that money back into the business immediately, because then you’re giving up access to that money immediately. Making sure that you have access to capital to run your business and grow your business is paramount. But then, how do we leverage other people’s money so that we don’t have all of our skin in the game? We need to have skin in the game, obviously. But the key is, how do we limit that so that we can leverage other people’s money?

There have been books and movies and videos done on leveraging other people’s money. But the key is doing it in a controlled fashion and this kind of ties in with our third point our third strategy of having that access to money. We need to leverage other people’s money, but we also need to have access to our own money, and they go really hand in hand, right? So the more access we have to our own money, the better terms we’re going to be able to get to leverage other people’s money. Because, at the end of the day, we’ll have the cash on the side to pay that back if necessary, at least from their perspective.

Access to capital is what is going to allow you to run your business. Access to capital is what is going to allow you to grow your business. Too often, we find businesses whose only access to capital is through banks or finance companies. And that may not necessarily be a bad thing, but sometimes it can get out of control because you’re not in control of the finance function. And we talk about it a lot on this blog, but when you’re in control of the finance function, it’s a better life. It’s a different life. And again, there’s no substitute for control.

By extending amortization schedules, that takes up less of our day-to-day or monthly cash flow, which allows us to have access to more of our own capital. And by doing it that way, we’re literally leveraging other people’s money in a way that’s positive for us because now we’re in control. We’re in control of more of our monthly cash flow. So you don’t just wake up one day and have a pile of cash sitting on the side saying, “Oh, now I have access to money.” It’s taking those small steps, maybe like extending your amortization schedule, so you’re able to build up that pool of cash quickly or slowly, depending on what your business cash flow looks like. And let’s take that to the next logical conclusion. So when you extend your amortization schedules, you free up more monthly cash flow that you could redirect to build your own pile of money.

Eventually, maybe your pile of money, as you’re paying down your bank loan, is growing. When you get to a point where you have a lot more money than you owe, now you can pay off the bank loan. And now you can determine what the cash flow is to pay off that loan. That’s where you could really get some significant results.

You know, all that energy is flowing back to you, and it just starts building upon itself. Everything begets more. And now, all of a sudden, you’re sitting on a pile of money. And, oh, by the way, that could be your long-term exit. So think about this as a business owner. Whether it’s a big business or a small business, how much of your money is going towards debt on a monthly basis? And what impact would that make to your financial position if all of that monthly cash flow was going to an entity where you had full liquidity, use, and control of that money, instead of all of that money going out the window?

That’d be huge. That’d be a huge pile of money.

So if I’m hearing you properly, what you’re saying is your amount of debt won’t change. But what will change is who that debt cash flow is being directed towards. It’s either going to be directed away from you or directed towards you.

If you’d like to learn more about how to put these strategies to work for your business and your family, be sure to visit our website at tier1capital.com to schedule your free strategy session today.

We’ll break down your specific finances, talk about how to put you back in control of that finance function so that you can sleep better at night knowing that you’re putting your business in the best possible position to succeed. And remember:It’s not how much money you make, it’s how much money you keep that really matters.

When it comes to finances, many of life’s biggest frustrations stem from not having access to cash when you really need it. This is especially true for small business owners who face the daily challenge of managing expenses, payroll, and growth while trying to maintain financial stability. Today, we’re going to talk about why access to capital is crucial for small businesses and how you can take control of your financial future.

As a small business owner, you’re constantly juggling responsibilities—running the business, managing employees, handling finances, and balancing family life. Financial stress doesn’t just exist in your business; it follows you home. The key to overcoming that stress is access to capital. Without it, scaling your business or even achieving personal financial goals can feel impossible.

Cash flow is the lifeblood of any business. You either have your own pool of money, or you have to pay to use someone else’s. If you want your business to grow, survive, and thrive, you need capital. The problem is that most small business owners rely on banks and lenders for funding, putting them in a position where they have to ask for permission to access money—money that comes with interest rates and repayment terms that don’t always work in their favor.

Many business owners believe they are just one big sale or one major contract away from financial freedom. But the reality is, without a plan for access to capital, that big sale won’t solve the problem. If you use those profits to pay off debt, you might relieve some immediate financial pressure, but then you face a new problem—no money left for future growth or emergencies. This cycle of paying off debt without building liquidity leaves many business owners stuck in a constant state of financial uncertainty.

Paying off debt might feel like the responsible choice, but if it leaves you without cash reserves, you’re still financially vulnerable. Instead of focusing solely on eliminating debt, business owners should prioritize creating their own pool of capital. When you have access to capital, opportunities find you. You’re no longer scrambling for funding when a great investment or business opportunity arises—you’re ready to take advantage of it.

The hardest step for many business owners is shifting their mindset. When you finally get a windfall of cash, the natural instinct is to pay off debt and reduce financial stress. But by taking a step back and choosing to keep cash on hand, you create financial security. Having access to money when you need it means you no longer have to prove your worth to banks or lenders—you’re in control of your own financial future.

Building your own pool of capital means no more filling out lengthy loan applications, no more waiting for approvals, and no more uncertainty about whether a lender will support your next move. Instead of asking permission to access money, you are in the position to give orders and make financial decisions on your terms.

One of the biggest benefits of having your own capital is that opportunities will seek you out. When you don’t have cash, you don’t even realize the number of opportunities passing you by. Without access to money, you’re not in a position to seize unexpected deals, invest in your business, or expand when the time is right. But when you have capital available, you become the person who is ready to act when the right moment presents itself.

Opportunities are never lost—they’re just taken by someone else who was better prepared. If you don’t have access to capital, someone else will step in and take advantage of the opportunities you miss. That’s why it’s so important to prioritize liquidity and put yourself in control of your financial destiny.

If you’d like to learn more about how to implement these strategies and take control of your financial future, visit our website at tier1capital.com to book a free strategy session. We’d love to help you develop a plan that ensures you have the capital you need—when you need it and remember, it’s not how much money you make, it’s how much money you keep that really matters.

When it comes to whole life insurance policies designed for cash value accumulation, everyone wants to use their money as efficiently as possible. Many people ask if they can grow their policy by paying back their policy loan, and that’s exactly what we’re going to cover today.

A policy loan is a loan taken against the cash value of your whole life insurance policy. When you build up cash value, the insurance company allows you to borrow against it by placing a lien on the policy. The money itself comes from the general account of the insurance company, not from your policy, meaning your cash value continues to grow uninterrupted while you access tax-free capital. However, the loan will require interest payments.

Using policy loans can be a great way to access funds for business investments or other financial needs, but they do not directly grow your policy. The growth of your cash value is not affected by whether or not you take a loan; rather, it depends on your premium payments and the policy’s structure. That said, with a mutually owned life insurance company, policyholders are part owners of the company. If the company generates a profit, a portion of it may be passed back to you in the form of tax-free dividends.

Policy loans give you guaranteed access to capital, allowing you to take advantage of opportunities in real estate, business investments, or even paying off debt. Having control over your money means you don’t have to depend on banks or lenders when opportunities arise. For small business owners, this kind of access is especially valuable. With a well-structured whole life policy, you can borrow against your cash value to fund business growth, buy equipment, or hire personnel, all while keeping your money working for you.

One important factor to consider is that whole life policies take time to build cash value. It requires foresight and discipline to contribute consistently, but the long-term benefits are worth it. The more premium you pay—whether through base premiums or paid-up additions—the faster your cash value and access to capital will grow. Over time, your policy can reach a point where, for example, you put in $10,000 and your cash value grows by $20,000. This process doesn’t happen overnight, but after several years, you can see significant benefits without taking on additional risk.

Many people view whole life insurance as a poor investment in the early years because they don’t see immediate returns. However, these policies are not investments—they are financial tools designed to provide liquidity and security. The real value becomes evident over time, as your premiums generate steady cash value growth without market risk.

We often tell people that a properly structured whole life policy can be the best financial asset you own when you’re in your 60s. The key is to start in your 30s, 40s, or 50s when you’re not yet thinking about retirement. The earlier you start, the more financial flexibility you will have in the future.

If policy loans don’t grow your policy, what’s the point of paying them back? The answer is access to capital. When you take a loan, it reduces the equity in your policy. Paying it back restores your equity, ensuring that you have more capital available in the future for other opportunities. Using policy loans to avoid high-interest credit card debt, fund business investments, or take advantage of opportunities with a high rate of return can be a smart financial move. However, once you have the money, paying back your loan reduces interest costs and increases future borrowing power.

If you’d like to learn more about how to grow your whole life policy or get started with your first specially designed whole life insurance policy for cash value accumulation, visit our website at tier1capital.com. We’d be happy to hop on a free strategy call with you to show you exactly how to put these policies to work for your specific situation and help you achieve your financial goals. Remember:It’s not how much money you make. It’s how much money you keep that really matters.

Does this sound like you? You’re running your business, reinvesting all your profits back into it, but when you need capital, you find yourself dependent on banks and credit companies. That’s why we made this blogpost. Today, we’re going to talk about how to run and grow your business while maintaining liquidity, because liquidity is key. Having access to your own capital means not being at the mercy of lenders when you need funding the most.

When it comes to owning and expanding your business, you always need money. It takes capital to keep things running, hire employees, purchase equipment, and seize new opportunities. The question is, how can you manage your cash flow in a way that ensures liquidity while reducing dependency on outside lenders? That’s exactly what we’re going to cover today—the case for liquidity in your business and how to position yourself for an advantage when it comes to accessing money when you need it most.

There is nothing more valuable to a business than having full liquidity, use, and control of money. However, most business owners are trained to operate in a way that doesn’t prioritize liquidity. Instead, the typical financial model involves bringing in profits, covering expenses, and then borrowing money when needed. As long as cash flow allows, businesses can take out loans, but that also means giving up more of their profits to debt payments. The problem is, relying on banks and credit institutions leaves you vulnerable. If the economy shifts, interest rates rise, or a recession hits, access to capital can suddenly disappear. Lenders can tighten credit lines or even cut off funding entirely. When that happens, business owners who depend on borrowed money may find themselves in a difficult financial situation.

During economic downturns, the first thing to go is access to money. Credit lines shrink, loan terms become stricter, and banks may no longer approve new financing. This can leave business owners scrambling to stay afloat. That’s why we developed a process to help business owners regain control of their money and ensure they always have access to capital when needed.

The key to financial security in business is keeping money in a place where you have full liquidity, use, and control. Instead of tying up every dollar in business operations and debt repayment, business owners should allocate a portion of their cash flow to build a liquid reserve. There’s an old saying: “When you have access to capital, opportunities will find you.” Unfortunately, many business owners reinvest every penny back into their business, leaving them with no financial flexibility. As debts are paid off, that money is gone—it’s not accessible for future use.

By making small tweaks to how you manage cash flow, you can build a reserve of liquid assets while still operating your business efficiently. It’s not about cutting expenses or increasing sales—it’s about using the same dollars more effectively. When you redirect a portion of your cash flow into a liquid account, you create a safety net that allows you to handle emergencies, seize investment opportunities, and maintain financial stability.

Many business owners believe the best way to gain financial security is to pay off debt as quickly as possible. But in reality, the fastest way to financial security is to build a pool of liquid cash that you control. Business owners lose sleep over financial stress, often worrying about debt. However, the goal shouldn’t be just to eliminate debt—it should be to create financial flexibility. When you prioritize liquidity, you give yourself options. You’re no longer dependent on banks, and you don’t have to panic when unexpected expenses arise.

One major issue business owners face is that most of their net worth is tied up in their business. In fact, 80% of small business owners have the majority of their wealth wrapped up in their business. But here’s the problem: when it’s time to sell, most business owners only realize about 25 cents on the dollar for their business equity. Think about it—you spend years growing your business, reinvesting profits, and building value. But when it’s time to exit, you might only get a fraction of what you expected. This is why proper financial planning is crucial. Without liquidity, a business owner’s only option for retirement may be selling their business.

Business Owner A has a business worth $1 million, but all of his net worth is tied up in that business. Business Owner B also has a business worth $1 million, but he has also built up $1 million in liquid assets. When it’s time to exit the business, Owner B has options. He can sell the business if he wants, but he doesn’t have to. His retirement income isn’t dependent on selling the business, and he has financial security. Owner A, on the other hand, must sell the business to survive because he has no other source of money.

The best part of this financial strategy is that it doesn’t require you to increase revenue or cut costs. It’s about redirecting the cash flow you already have to work in your favor. Instead of reinvesting every dollar into the business, allocating a portion to a liquid asset account ensures financial security. This approach allows you to grow and expand your business with financial confidence, maintain cash flow flexibility even during economic downturns, protect your business and personal financial future, and exit the business on your terms rather than out of necessity.

At Tier 1 Capital, our goal is to help business owners stay in control of their finances instead of having their finances control them. We don’t just focus on interest rates or rates of return—we focus on cash flow, liquidity, and access to money. If you’d like to learn more about how to apply these strategies to your business, visit our website at tier1capital.com to schedule a free strategy session today. Remember, It’s not how much money you make. It’s how much money you keep that really matters.

With inflation at an all-time high, it’s harder than ever to make smart financial moves to secure your future. But that’s exactly what we’re going to discuss today—how to move yourself, your family, and your business forward despite rising prices.

According to the Bureau of Labor Statistics, from 2020 through the end of 2023, inflation has risen by 21.4%. That means something that cost $100 in 2020 now costs $121.40. This is especially alarming because while prices are increasing, incomes aren’t rising at the same pace, and the cost of borrowing money is climbing even higher.

Today, we want to talk about smart financial moves you can make to counteract the effects of inflation. We’ve identified five key strategies that can help.

The first step to offsetting inflation is to perform a spending audit. This is easier said than done, and it’s important to clarify that the goal isn’t necessarily to cut spending but to understand exactly where your money is going. By identifying spending patterns, you might find ways to make the same purchases in a more cost-effective or inflation-friendly way.

What is measured can be managed. Imagine knowing exactly how much you spend on Amazon or streaming services each month. If you could cut those expenses by even 5%, 10%, or 15%, that savings could have a big impact over time. But if you don’t track your spending, you won’t know where you can make adjustments.

The second way to manage inflation is by opting for a longer mortgage term. When inflation rises, the cost of goods and services increases, which puts pressure on your cash flow. Extending your mortgage term lowers your monthly payments, freeing up money for other expenses.

Think about this: before 2021, interest rates were historically low. If you locked in a 30-year mortgage at that time, your monthly payment would be much lower compared to today’s higher interest rates. Not only that, but housing prices were lower then, meaning you would have also built more equity in your home.

Even now, locking in a lower monthly payment for a longer period can provide financial stability. Plus, if you need extra cash, tapping into home equity may be an option to help you manage rising costs.

Another way to improve cash flow during inflation is to contribute to your retirement plan only up to your employer’s match. This strategy allows you to maintain liquidity while still taking advantage of free money from your employer’s contribution.

While retirement savings are important, traditional accounts like 401(k)s and IRAs come with restrictions. You don’t have full control over when or how you can access your money without penalties. Instead of locking away excess funds, keeping cash accessible can provide financial flexibility when you need it most.

Many people assume that paying cash is the best financial decision, especially during times of inflation. The logic is that buying now avoids future price increases. However, there’s a downside: when you use all your cash for a purchase, you eliminate your liquidity.

If an emergency arises or a great financial opportunity comes along, you may have to borrow money at a higher interest rate to cover the expense. That puts additional strain on your cash flow.

Now, if you know you struggle with debt management, this strategy may not be for you. If you’ve had credit card debt in the past and are trying to avoid it, paying cash could be a responsible choice. However, if you have the financial discipline to manage cash flow wisely, it’s better to keep cash reserves and use leverage instead.

By maintaining control over your cash and financing major purchases strategically, you can keep your net worth intact while preserving liquidity. When you have cash on hand, you have greater financial agility and are in a stronger position to handle unexpected expenses or investment opportunities.

The final strategy to combat inflation is to ensure that you are always in control of your cash flow.

This ties directly into the previous point about maintaining liquidity. When you have access to cash, you are in a better position to make financial decisions on your terms. You can negotiate better deals, take advantage of investment opportunities, and avoid the pitfalls of high-interest debt.

At Tier 1 Capital, we emphasize financial control. When you view your finances through the lens of maintaining control, decision-making becomes much easier. Before making any financial move, ask yourself:

• Will this put me in greater control of my money?
• Will this allow me to be more financially agile?

If the answer is no, consider an alternative approach that keeps you in control.

A lot of financial success comes down to perspective. It’s not always about rigid financial rules—it’s also an art, depending on your personal situation and circumstances.

If you’d like to learn more about how to apply these strategies to your specific financial situation, visit our website at tier1capital.com and schedule a free strategy session today.

Remember, It’s not how much money you make. It’s how much money you keep that really matters.