Cash Fluency

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 It’s harder than ever to get ahead using outdated financial strategies.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.

When it comes to whole life insurance, most people know by now that there is a cash value associated with the policy—both guaranteed and non-guaranteed. However, what many don’t realize is that there are ways to accelerate the growth of that cash value, giving you more liquidity, use, and control of your money while you’re still alive. Not to mention, these strategies can also strengthen the death benefit when you pass.

We’ve identified four key strategies to supercharge the growth of your cash value in a whole life policy. Let’s dive in.

Opt for a Limited Pay Policy

Most whole life insurance policies are designed to be paid up at age 100 or even 121, meaning you have a long premium payment period. However, if you want to grow your cash value faster, you can compress that payment period so that you contribute premiums for a limited number of years.

By doing this, you force the cash value to accumulate in a shorter period, which accelerates its growth. The key here is that the insurance company still has to honor its promises:

They must pay out the death benefit.
The cash value must equal the death benefit at the policy’s maturity (age 100 or 121).

If you opt for a policy with a 10-, 15-, or 20-year payment period (or one that’s paid up at age 65), the insurance company calculates on a guaranteed basis how much growth needs to occur within the policy to meet the maturity requirement.

One key distinction here is that when the policy premiums stop, that doesn’t mean the policy has matured. If you have a 10-pay policy, for example, that just means you stop making payments after 10 years, but the death benefit and cash value will continue to grow until age 100 or 121.

Add a Paid-Up Additions (PUA) Rider

Another way to accelerate cash value growth is by adding a Paid-Up Additions (PUA) rider.

A PUA rider allows you to buy additional paid-up death benefit inside the original whole life policy. For example, if you put an extra $1,000 into the policy, that might buy $25,000 in paid-up death benefit. That means that $1,000 has to grow to $25,000 by the policy’s maturity date—offering significant guaranteed growth.

However, it’s important to structure this correctly so that you don’t lose the tax-free benefits of life insurance. You can’t put in an unlimited amount of PUAs because there are limits imposed by the modified endowment contract (MEC) rules. Properly structuring your policy allows you to maintain the tax advantages while maximizing your cash value accumulation.

Whole life policies naturally become more efficient over time, growing on a guaranteed basis. However, in the early years, they tend to have little to no cash value. By adding a PUA rider, you can build cash value much earlier, reducing the delay in accessing your money.

Use a Term Rider

Adding a term rider to your policy might sound counterintuitive, but it actually allows you to accelerate cash value growth even further.

Here’s how it works: a term rider increases your total death benefit, which, in turn, raises the ceiling on how much cash value you can accumulate. The amount of cash value you can build is based on your age and the death benefit amount. Since you can’t control your age, increasing the death benefit allows you to contribute more PUAs, boosting your cash value faster.

Think of it like this:

You start with a $100,000 term rider.
You begin contributing PUAs, which gradually replace the term insurance with paid-up life insurance.
Over time, the term insurance amount decreases, while the paid-up portion increases.
Eventually, you end up with $100,000 in fully paid-up life insurance and zero term insurance—resulting in significant cash value growth.

There are different ways to structure this. Some term riders come with built-in flexibility, allowing you to adjust your contributions over time. Others use a level term structure, where you have a fixed cost for the first 7–10 years, keeping costs low while still allowing for growth.

The key here is working with an experienced advisor who understands your specific needs. They can help you design a policy that aligns with your financial goals.

Execute a 1035 Tax-Free Exchange

A 1035 Exchange allows you to transfer money from one life insurance policy to another without triggering taxes.

This can be beneficial if you have an underfunded policy or a different type of insurance (such as universal life) that isn’t performing as expected. If an in-force ledger analysis shows that your current policy won’t last through maturity, you might want to salvage the cash value and transfer it into a properly structured whole life policy.

In this case, the existing cash value is moved into a single premium paid-up life insurance component within the new policy. This allows you to preserve the value of your old policy while benefiting from the guarantees and cash value accumulation of whole life insurance.

It’s important to understand the differences between universal life and whole life insurance before making this move. Universal life policies often become underfunded over time, meaning they may lapse unless you contribute additional premiums. Whole life, on the other hand, offers guaranteed cash value growth and a guaranteed death benefit.

To determine if a 1035 Exchange makes sense for you, request an in-force ledger statement from your insurer. This document projects how your policy will perform in the future and can help you decide whether it’s best to keep your current policy or make a switch.

Bonus Strategy: Combine All Four for Maximum Growth

If you really want to supercharge your whole life policy’s cash value growth, you can combine all four of these strategies:

Opt for a limited pay policy.
Add a Paid-Up Additions rider.
Use a term rider to expand your capacity for PUAs.
Consider a 1035 Exchange if you have an underperforming policy.

By leveraging these techniques together, you can significantly enhance the liquidity, use, and control of your money—while still enjoying the long-term benefits of whole life insurance.

If you’d like to learn more about how to apply these strategies to your specific situation, visit our website at tier1capital.com and book your free strategy session. Remember, It’s not how much money you make. It’s how much money you keep that really matters.

When it comes to owning a business, there are many complexities that, quite frankly, aren’t talked about enough. One of the biggest challenges business owners face is key employee retention. Did you know that one out of every two employees is actively or passively looking for new opportunities? This is a huge deal because business owners rely heavily on key employees—their skill sets, experience, and institutional knowledge.

For small businesses, the impact is even greater. In many cases, key employees may be the only person in a geographic area who can perform certain duties, or they may be the glue holding the company together. Losing them could be devastating—both operationally and financially.

Key employees often have options. Their skills aren’t just valuable at their current company; they could be in demand at larger companies with better pay, more benefits, or remote work opportunities. As a key employee, someone might ask themselves, “My skills are worth X amount here, but I could earn twice as much elsewhere. What should I do?” or “Am I maximizing my value for myself and my family?”

From a business owner’s perspective, losing a key employee isn’t just about filling a vacant position. The cost of replacing a key employee is typically 200% of their salary. Replacing a key employee involves recruiting and hiring costs, training and onboarding, lost productivity, and lost revenue, especially if the departing employee was in sales. Retaining key employees isn’t just about company culture—it’s a smart financial decision.

One major challenge business owners face is how to incentivize key employees to stay without giving up equity in the company. For family-owned businesses, keeping ownership within the family is a top priority. But without the right incentives, key employees may start looking for opportunities elsewhere.

A specially designed whole life insurance policy with cash value accumulation is one of the most effective solutions. The business funds a whole life insurance policy that builds cash value. The business owns the policy, giving them control while providing an incentive for the employee. The cash value within the policy remains accessible, allowing the business owner to reinvest in operations. This creates a win-win scenario where the business retains key employees, and employees receive meaningful long-term benefits without requiring the owner to give away equity.

To see how this works in practice, let’s look at a real example. One key executive had young children and was worried about the cost of their education. His employer approached him and said, “If you stay with us for the next 10 years, we guarantee that we will provide $40,000 per year for four years for each of your two children.” That’s a total of $320,000—an amount the employee would no longer need to worry about saving. The employee was so overwhelmed with gratitude that he was in tears. And the result? He stayed with the company.

Why? Because no other employer would guarantee that his children’s education would be paid for. This strategy worked because the business owner took the time to understand what truly mattered to the employee.

Many business owners assume they don’t have the cash flow to fund a retention strategy like this. But the truth is, they don’t need extra money—they just need to use their existing cash flow more efficiently.

At Tier 1 Capital, we’ve helped business owners for over 40 years by identifying inefficiencies in cash flow, reallocating existing money to fund retention strategies, and creating solutions that are cash-flow neutral so they don’t hurt the business financially. If a business could retain key employees and grow without increasing expenses, wouldn’t that be the best of both worlds? That’s exactly what we help business owners do.

If you’re a business owner who’s worried about losing key employees, it’s time to take action. Retain your top talent without giving up equity. Make your cash flow more efficient without sacrificing growth. Secure your business’s future without increasing financial stress.

Let’s find a strategy that works for your business. Schedule a free strategy session today. We look forward to helping you protect your business and secure its future.

Remember, it’s not how much money you make—it’s how much you keep that matters. Thank you for reading, and we hope this helps you take control of your cash flow and your future.