investment dividends

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.

When it comes to being a small business owner, everyone knows that cash flow is the lifeblood of any business. Today, we’re discussing how to optimize your cash flow as a small business owner. Most small business owners pursue this path because they want control—control over their destiny and financial freedom. However, with that freedom comes pressure, especially regarding cash flow.

A survey by Intuit revealed that 61% of small business owners globally struggle with chronic or cyclical cash flow issues, and 69% report losing sleep over these concerns. Here’s the truth: most cash flow issues are self-inflicted. This might sound harsh, but it’s good news because it means you can take steps to resolve them.

Many business owners believe they are just one big sale away from financial freedom. They think, “If I can just make this sale, I’ll pay off my debts and finally be free.” But often, this doesn’t bring the relief they hoped for. Instead, they go from one position of no cash to another, creating a cycle that feels impossible to escape. This cycle, often called the “curse of the entrepreneur,” stems from the mindset that one big break will solve everything. But in reality, the key isn’t in making more money—it’s in how you use your existing cash flow.

Many business owners try to get out of debt as quickly as possible, sacrificing monthly cash flow to pay off debt faster. However, there’s always another purchase or opportunity around the corner that requires additional cash or borrowing. This creates a repetitive cycle of paying off debt and acquiring more. The solution? Break the cycle by building a pool of cash that you control completely. By taking small steps and following through with consistent daily disciplines, you can stop giving all your money to the bank and start building financial freedom.

One common question is, “If I could save more money, wouldn’t I?” The challenge is that many business owners don’t think they have room in their cash flow to save. Taking money out of an already tight cash flow seems counterintuitive. But here’s the secret: there are ways you’re using money that seem helpful but are actually holding you back. By optimizing the efficiency and effectiveness of your current cash flow, you can find savings without increasing revenue or cutting expenses.

The idea of “multi-duty dollars” is critical here. Imagine getting one dollar to do multiple jobs—pay off debt, build savings, fund an emergency account, and address larger goals like succession planning or retaining key employees. Instead of feeling squeezed and tackling one problem at a time, you maximize the utility of every dollar.

How do you optimize cash flow? It starts with examining key areas: how you pay taxes, fund retirement, manage debt, make major capital purchases, and reinvest profits. By diving deep into these areas, you can repurpose money already within your cash flow to create a pool of savings. This approach doesn’t require reducing expenses or generating more revenue, which is a game-changer for many small business owners.

Ultimately, it’s all about control—control over your money, your business, and your financial future. If you’d like an analysis of your business’s cash flow, visit tier1capital.com to schedule a free strategy session. There’s no cost or obligation, and it’s an opportunity to relieve financial pressure and sleep better at night.

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.

When it comes to life insurance, it can feel confusing. There are many myths about who needs it and when. Today, we’re debunking five common myths about life insurance.

The first myth is “I’m young, single, and healthy. I don’t need life insurance.” This couldn’t be further from the truth. When you’re young, single, and healthy, you have the most cash flow, health, and time to lock in the lowest premiums. Life insurance will never cost less than it does today, especially for whole life insurance. Whole life insurance provides more than just a death benefit. It builds cash value, acting like a savings account that you can access with full liquidity. Plus, you pay for life insurance with your money but buy it with your health. Starting young ensures lower premiums and guarantees coverage when you need it most.

Another myth is that life insurance is expensive. The cost of life insurance, especially whole life insurance, can be broken down into gross cost and net cost. Gross cost is the monthly premium, while net cost accounts for the accumulating cash value within the policy. Over time, the net cost is often zero or even positive with a dividend-paying, mutually owned policy. The insurance company makes two promises with a whole life policy: to pay the death benefit whenever the insured passes away and to ensure the cash value equals the death benefit by maturity (age 100 or 121). This contractual guarantee offers long-term value that can make life insurance an affordable financial tool.

There is also the myth that life insurance is unnecessary after retirement. Many believe life insurance is unnecessary after 65, but this is a myth. If you don’t accumulate enough assets, life insurance can ensure a legacy for your family. Even if you’re successful financially, life insurance can cover estate taxes, ensuring your heirs can inherit your assets without financial strain. Life insurance cash value is among the most valuable parts of a retirement portfolio. Unlike other accounts that are taxed upon withdrawal, the cash value from life insurance is accessible tax-free. Many clients in their 60s and 70s don’t want to get rid of their policies—they want more! The best strategy is to purchase life insurance early to have it when you truly need it.

Another misconception is that life insurance is a lousy investment. Comparing life insurance to investments is like comparing apples to racing cars. Investments carry risk, but whole life insurance is a contractual guarantee. It offers stability, liquidity, and control—features that investments often lack. Life insurance can also serve as a financial safety net during emergencies or allow you to seize investment opportunities without liquidating assets. Its stable growth and accessibility make it a valuable financial tool.

Lastly, there is the idea that you should only buy term insurance because it’s cheaper. The idea of “buy term and invest the difference” might sound appealing but comes with risks. Investments are subject to market volatility, taxes, and limited access. While term insurance might seem cost-effective, most people fail to invest the difference as planned. Whole life insurance provides certainty and guaranteed growth, making it a more reliable option for many.

Life insurance is often misunderstood. We’ve tackled five myths today, but if you have more, drop them in the comments—we’d be happy to cover them in a future blog post. You can also visit our website, Tier1capital.com and schedule your free strategy session.Remember, it’s not how much money you make but how much you keep that matters.

When it comes to conventional wisdom, what most people don’t realize when they’re following it is that there are costs associated with the decisions that we’re making every day. These tiny decisions we make make a big impact over time, and that’s exactly why we’re going to dive into those hidden costs of following traditional financial advice today.

So you mean to tell me that free advice isn’t free? It’s funny because the media puts out all of this conventional wisdom of things we should and shouldn’t be doing with our money as if they’re moving us forward and not in their own best interest. There are hidden costs, and that’s such a great topic because conventional wisdom or traditional financial advice is rooted in risk or volatility. Basically, what’s happening is you’re being sold or positioned to expose your money or your wealth to risk and volatility—things, by the way, over which you have very limited, if any, control. That goes totally against what we talk about here. We are always talking about how we could put you in control of your money and how we can make that money as efficient as possible. By exposing that money to risk exclusively, you’re absolutely out of control. We don’t necessarily have control over the efficiency either because there are taxes and laws associated with each different type of account.

In order to make your money more efficient, oftentimes, especially with what we talk about, we step back from the conventional wisdom. We step back from the conventional way of financing, saving, and using our money to put ourselves in control instead of following that conventional wisdom, which leaves the control out of our hands. If I’m doing financial planning and I have a specific goal in mind, I know what the goal is, and I want a surefire way on how to get there. I don’t want to risk my way to that reward or the possibility of that reward because the last thing we want is to put all of this money away for all of this time and not be able to achieve that goal even though we played our part.

The rules can change, or the markets can change. Maybe you don’t want to take risks or expose your money and wealth to volatility. There’s another hidden cost: taxes. Once you’re putting your money away, your goal is to get a high rate of return. Is that really the goal? At the end of the day, the more you make, the more Uncle Sam takes. You’ve got a partner in that account, and that’s something that most people don’t take into consideration. Right away, you’re exposing yourself to risk and taxes that you may not have been exposed to had you not followed conventional wisdom. Not to mention inflation and high-interest rates.

Traditional financing also leaves you out of control with blatant costs like interest rates and hidden costs like not being able to save or access that money again and not feeling financially free. Paying off a mortgage quickly is often seen as wise, but is it actually moving you forward financially? Home equity isn’t necessarily liquid. It’s the bank’s decision to let you access it, not yours. If the rules change, or something happens where you’re unable to qualify, you’re left without options.

Additionally, following conventional advice often exposes you to regulation changes that are beyond your control. Rules made in Washington can directly impact you. We always talk about control, efficiency, and saving in a place you own and control, like a specially designed whole-life insurance policy. This allows for guaranteed growth, opportunities for non-guaranteed growth with dividends, and a framework where the rules are laid out clearly in a contract. Saving conventionally often means strong dollars today are being put away to retrieve weaker dollars in the future, given the effects of inflation.

Not being able to access the money along the way is a major challenge. Financial goals like buying a house, sending kids to college, or starting a business all require money, and inflation makes everything more expensive. Having access to money throughout your financial journey is critical. Putting it in places subject to regulation, taxes, and market risks limits your options.

The answer is to protect yourself from risks: losses, taxes, regulations, and inflation. Various strategies and places can help you do this, and we can guide you to find the best fit for your situation. If you’d like to learn more visit our website Tier1capital.com to book a free strategy session today! And remember, it’s not how much money you make—it’s how much you keep that truly matters.

When it comes to dividends associated with a whole life insurance policy, there are several dividend options available to policyholders. These options allow you to customize how your dividends work for you, and understanding them is key to making the best choice for your financial goals. As owners of a whole life policy with a mutual insurance company, policyholders share in the profits of the company and have the freedom to decide how to use their dividends. The first option is to receive your dividends directly in cash. At the end of the year, mutual insurance companies calculate their profits. Since you’re a policyholder and therefore an owner of the company, you’re entitled to a share of these profits. If you choose this option, the insurance company will issue you a check for your share of the profits. It’s a straightforward way to put cash in your pocket.

The second option is to reduce the premium on your policy. For example, if your annual premium is $1,000 and your dividend is $200, you’ll only need to pay the remaining $800. This method reduces the out-of-pocket cost of maintaining your policy. Both the cash and premium reduction options provide immediate financial relief, which can be appealing for those looking for quick results. The third option involves using dividends to purchase one-year term insurance, which increases your death benefit. While the cost of term insurance rises with age, the additional death benefit remains consistent, providing extra security for your beneficiaries or chosen charity.

Another option is to let your dividends accumulate at interest. Here, dividends are held by the insurance company in a separate account and earn a fixed rate, typically between three and four and a half percent. This allows your dividends to grow without immediate use, providing a layer of steady financial growth. A highly popular option is using dividends to purchase paid-up additions—additional life insurance that increases both the cash value and death benefit of your policy without requiring further premiums. This strategy allows your money to grow and compound uninterrupted. Over time, this creates exponential growth as dividends generate more dividends, which in turn generate even more dividends. It’s a powerful way to build long-term wealth while maintaining liquidity through the policy’s loan provision.

Lastly, if you have taken a loan against your policy, you can use your dividends to pay the loan interest. Any remaining dividends can then be reinvested or applied to purchase paid-up additions, helping you manage debt while still growing your policy’s value. Dividends are essentially a bonus—a return of profit from the insurance company to you. How you utilize them depends on your financial goals and current needs. Whether you prefer immediate cash, long-term growth, or loan management, there’s an option that fits your strategy.

These are the six main dividend options we know of. If you’ve encountered others, feel free to share your insights. Remember, dividends are a powerful tool, and how you use them can make a big difference in achieving your financial objectives.

Visit our website Tier1capital.com to book a free strategy session today! And remember, it’s not how much money you make—it’s how much you keep that truly matters.

We’ve been helping families, business owners, and individuals take control of their finances for years. Today, we’re excited to revisit the foundational principles of the Infinite Banking Concept. Whether you’re managing personal finances, running a business, or planning for the future, this concept provides a powerful tool to achieve financial goals.

So, what is the Infinite Banking Concept, and more importantly, what isn’t it?

First, it’s not about life insurance. A common misconception is that infinite banking revolves around buying life insurance, but it’s actually about controlling the process of financing in your life. Nelson Nash, in his book Becoming Your Own Banker, makes this clear. The core idea is that we finance everything we buy—either by borrowing money and paying interest to someone else, or by paying cash and losing out on the interest we could have earned elsewhere. There’s no free lunch.

Some may claim they have an “infinite banking policy,” but that’s a misnomer. There’s no such thing. While certain policies are designed to implement the Infinite Banking Concept, Nelson discovered this process using a traditional whole life insurance policy he had purchased back in 1958.

Fast forward to the early 1980s: interest rates soared from around 8.5% to over 20%, and Nelson faced massive interest payments—$50,000 to $60,000—on a commercial loan. At first, he was at a loss. He couldn’t afford to both keep the property and make the payments. Selling wasn’t an option, as high interest rates had drastically reduced the property’s value.

Then, a simple piece of mail changed everything. Nelson received a statement for his State Farm life insurance policy. He noticed that for a $389 premium, the cash value of the policy would increase by nearly $1,600. That’s when it hit him: he needed to align his life insurance premiums with his mortgage payment. This would ensure that when mortgage rates spiked, the increase in cash value would help cover the additional cost. This realization marked the genesis of the Infinite Banking Concept.

It’s a story that resonates to this day. Many people remain at the mercy of fluctuating interest rates on mortgages, home equity lines of credit, or business loans. Rates can rise unexpectedly, throwing financial plans into chaos. Nelson’s foresight—creating and controlling a personal pool of money—allowed him to navigate these challenges with confidence.

Initially, Nelson purchased his policy for its death benefit. But over time, the cash value grew, creating a financial resource he could tap into through policy loans. His background as a forester gave him a unique long-term perspective; he thought in terms of decades and generations. He realized that to prevent this issue from recurring, he needed to structure his finances so his life insurance premiums equaled his mortgage payment.

Importantly, this was not a short-term solution. Nelson was investing in a policy that wouldn’t have cash value for two or three years. But his long-term thinking paid off—it literally saved him.

This brings us to the essence of the Infinite Banking Concept: it’s about how you use your money. It starts with foresight—anticipating what you’ll need in the future and ensuring it’s available when you need it. You may not know exactly what challenges or opportunities lie ahead, but planning for the unexpected is critical. When things are going well, that’s great—but what’s your backup plan when the unexpected happens?

At its core, the Infinite Banking Concept is about being in control of the financing process. It starts with building a pool of cash that you fully own and control, offering liquidity and flexibility. Once that’s established, you have options: paying off debt, investing in real estate, remodeling your home, supplementing retirement income, or making a down payment on a new property. With your own pool of money, the possibilities are endless.

But there’s a critical step: playing the honest banker. This means valuing your money the same way a bank values theirs. Whether you’re borrowing from your policy or repaying it, treat it as if you were working with a traditional lender. This ensures you don’t lose the opportunity cost associated with spending your money elsewhere.

The real power of this system lies in its adaptability. Interest rates fluctuate over time. When bank loans were at 2-3%, some chose not to borrow against their policies. But as bank rates climbed to 8-10% while policy loans remained at 5%, those with foresight and a well-structured policy enjoyed the freedom to borrow on more favorable terms.

It’s not about interest rates or returns—it’s about control. Infinite banking allows you to navigate financial challenges and seize opportunities with confidence.

As Nelson envisioned, this process isn’t just for one generation—it’s a tool for creating generational wealth. By educating your children and grandchildren on this concept, you can ensure they continue the legacy. Each generation benefits from the death benefit, using it to build their own pool of cash and pass it along. This creates a self-sustaining system of financial independence.

Importantly, infinite banking doesn’t require lifestyle sacrifices. It’s about making smarter choices with the money you already spend. Instead of relying on external financing, you fund your purchases from your own pool of cash, retaining control and flexibility. This system can go on indefinitely, benefiting you and future generations.

Getting started is simple: start where you are. Begin with a policy that’s comfortable for your current financial situation, and as your cash flow grows, expand your system with additional policies. As Nelson often said, someone will benefit from your foresight—why not make sure it’s you and your family?

Visit our website Tier1capital.com to book a free strategy session today! And remember, it’s not how much money you make—it’s how much you keep that truly matters.

Achieving financial freedom feels more challenging than ever. High interest rates, rising inflation, and the creeping pressure of lifestyle inflation can make the dream seem unattainable. Yet, financial freedom is within reach—it’s not just about how much you earn but how you manage, control, and optimize your money. By understanding and applying a few key principles, you can take control of your finances and experience the true freedom that comes with it.

Financial freedom starts with a feeling—a sense of being unchained from financial stress and constraints. It’s about living life on your terms without being held back by outdated systems or rigid financial strategies. At Tier 1 Capital, we believe the path to financial freedom begins with control. By taking control of your money and making it as efficient as possible, you can build a pool of cash that is fully liquid and accessible when life throws you opportunities or challenges.

One common roadblock we see is the traditional approach to saving. Many people segment their money into “buckets,” with specific funds for retirement, emergencies, and education. While this might seem like a sound strategy, it often leads to inefficiencies and limitations. What happens when an emergency arises, but your emergency fund falls short? Do you tap into retirement savings or your child’s college fund? These decisions come with penalties, taxes, and financial stress. Worse, earmarking money in accounts with restrictions often leaves you with no other option but to rely on credit cards or loans to bridge the gap, creating a cycle of frustration and debt.

We’ve seen this play out time and again. Consider a doctor we met years ago. Despite earning over $850,000 annually and having $1.5 million in his retirement accounts, he didn’t feel financially free. Why? His money was locked away in accounts he couldn’t access without penalties. When he wanted to take his family of six on a Disney vacation, he had no liquid savings and was forced to use a credit card with 18% interest. On paper, he was wealthy, but in practice, he was trapped. This situation is a perfect example of what happens when you give up control of your money.

The first step to financial freedom is to stop giving up control. Traditional advice tells you to lock money away in retirement accounts, 529 plans, or other restrictive savings vehicles. While these accounts have their place, they can limit your ability to respond to life’s needs or opportunities. Instead, focus on saving your money in a way that gives you liquidity, use, and control. This shift allows you to address emergencies, take advantage of opportunities, and maintain financial stability without compromising your long-term goals.

Another critical step is auditing your cash flow. Take an honest look at where your money is going. Are there inefficiencies? Are you unknowingly transferring wealth away from yourself? Often, the problem isn’t that you don’t earn enough—it’s that your money isn’t working as efficiently as it could. By identifying these leaks, you can redirect your cash flow and make it work harder for you.

Ultimately, financial freedom comes down to access. Having money isn’t enough if you can’t use it when you need it. Every purchase you make is either financed by paying interest to someone else or by giving up the potential interest your savings could earn. Instead of falling into this trap, consider borrowing against your savings and paying interest back to an entity you own and control. This approach keeps your money working for you while giving you the flexibility to manage life’s needs on your terms.

When you regain control of your financial system, you take ownership of your future. You determine the terms of repayment and ensure your money remains accessible and working for you. This control is the essence of financial freedom. It’s not about the size of your income or the balance in your retirement account—it’s about having the liquidity, use, and control to live life on your terms.

At Tier 1 Capital, we always say, “Control equals freedom.” When you control your cash flow, you unlock the ability to take advantage of opportunities and weather life’s challenges with confidence. If you’re ready to take the first step toward financial freedom, visit us at tier1capital.com. Remember, it’s not how much money you make—it’s how much money you keep and control that truly matters.

You may or may not realize that you’re able to insure not only your own life, but also the lives of others, under certain conditions. And that’s exactly what we’re going to talk about today—how to buy a policy on someone else’s life.

Now, in most cases, when you purchase a life insurance policy, you’re both the owner and the insured. This means your own life is covered, so the death benefit will be paid out when you pass away. As the owner, you control everything: you pay the premiums, can change the beneficiary, and access benefits like the cash value. But sometimes, it might make sense to purchase a policy on someone else’s life, especially if you’re uninsurable or would suffer a financial loss if that person dies. In that case, you’d be the owner of the policy and have access to those benefits, including the cash value.

Think of it this way: maybe you want a life insurance policy but aren’t insurable yourself. That’s where the insurance industry provides the option to purchase a policy on anyone with whom you have an insurable interest. So, what is an insurable interest? Basically, it means you would suffer some financial loss if that person passes away.

Let’s talk about who might qualify as someone with an insurable interest. This could include your spouse, your child, a co-signer on a loan where you’d be responsible for paying the loan if they die, a parent you rely on financially, or even a business partner. There are other options as well, like a key person in your company or a partner in a real estate venture. We’ve even worked with people who co-own assets like an airplane together. In that case, if something were to happen to one partner, the other partner would want to ensure the deceased partner’s share of the asset was taken care of, so they purchase insurance on each other.

Even if you have a roommate who helps with expenses, their passing could create a financial loss for you. But regardless of the situation, when you want to purchase life insurance on someone else’s life, the agent will need to explain to the insurance company what the financial loss would be if that person dies. Once this is established, the underwriting process is quite similar to a standard policy. The majority of underwriting will be based on the insured person’s life, as the insurance company is assessing their risk. So, the insured person would need to complete the application, possibly undergo a physical if required, release medical records to the insurer, and sign the necessary delivery documents. But from there, it’s straightforward—the policy then lies entirely in the owner’s hands.

Here’s a key point to remember: the insurable interest only has to exist at the time of application. For example, if two business partners apply for insurance on each other, and later down the road they sell the business, they can still keep those policies because the insurable interest was verified only at the time of application. This is a big contrast with property insurance, where the insurable interest must exist throughout the policy.

At the time of delivery, the insured signs off on the policy, giving the owner complete control. The owner will have that control throughout the insured’s life and, ultimately, the death benefit will be paid to the owner or to a beneficiary designated by the owner.

This approach can also be a solution if you’re uninsurable and want to implement the infinite banking concept. Simply find someone with whom you have an insurable interest, purchase a policy on them, and you’ll control the cash value. Then you can borrow against it and take advantage of all the benefits that infinite banking provides.

It’s interesting to note that when people are considering buying policies on others, they often think about insuring the youngest person possible to gain the longest growth period. However, if you’re looking for liquidity in the near term, you might want to think about insuring someone closer to your own age, or even older, if budget allows. When that person eventually passes, you’ll receive a guaranteed sum of money, along with access to the cash value in the meantime.

If you’d like to learn more about this strategy and how it could work in your life, visit our website at tier1capital.com to schedule a free strategy session or download our free business owners guide. We’d be happy to discuss your unique situation and help you make the most of it.

Remember, it’s not about how much money you make—it’s about how much you keep that truly matters.

In America, we tend to view our financial lives in terms of “money in, money out.” You go to work, earn money, and then use that income to pay bills. It’s a cycle most people are familiar with. However, when we’re taught about finances, the focus is often on the rate of return—how much interest can be earned on savings or investments. But here’s the problem: if your cash flow is inefficient, there won’t be anything left to save.

That’s what we’re discussing today—the difference between cash flow and rate of return, and why optimizing your cash flow might be the most important financial move you can make. At Tier 1 Capital, we’ve dedicated ourselves to helping people regain control of their money, and our approach focuses on cash flow, not just rate of return.

Here’s the simple truth: you can’t spend rate of return. Cash flow, on the other hand, is the lifeblood of both your family and your business. When you focus on cash flow—and more importantly, maintaining control over it—you gain clarity and confidence in your financial decisions. Rate of return is unpredictable and often involves locking up your money, making it inaccessible when you need it most. But when you focus on cash flow, suddenly, a world of possibilities opens up.

One of the biggest areas where we help families and businesses is by analyzing their current cash flow. Many people have inefficiencies in their financial systems—money leaks, so to speak. These are like holes in a bucket where cash slips through your hands each month without you even realizing it. Our goal is to plug those leaks, even if it’s just a small amount at a time, so your money stays in your control.

Think of it this way: when you plug the holes, less money leaks out. Now, that money remains with you, building up over time and becoming available for future purchases or investments. The key is to make that money work for you, not for financial institutions, advisors, or large corporations.

We all know the importance of saving, right? No matter how much you’re saving—whether it’s 5%, 10%, or 20%—there’s always a sense that you should be saving more. And that’s even harder today with rising inflation and interest rates. So how do you maintain a manageable cash flow while still saving for the future? By identifying inefficiencies in your current system and redirecting that money to a place where you have liquidity, use, and control over it.

Once you start building up a pool of cash, you gain options. You won’t need to rely on high-interest credit cards (which can have rates of 30% or more!) or take out loans with unfavorable terms. You’ll have something in your back pocket—a financial safety net that you’ve built and can leverage when needed.

At Tier 1 Capital, we recommend placing that money into specially designed life insurance policies, structured for cash accumulation. Why? Because not only does your money continue to grow with compound interest, but you can also borrow against the policy at much lower rates—currently around 5.5% to 6%. Compare that to today’s mortgage rates, which are often over 7%, or even home equity lines of credit that can go up to 9.5%.

The real advantage of these policies? They offer flexible, unstructured loan repayments. When you take a policy loan, there’s no strict repayment schedule. Yes, you should pay back the interest annually, but beyond that, you get to decide how and when you repay the loan. If you’re used to paying a fixed amount to a credit card company each month, you can now direct those payments toward your policy loan—and if you have extra cash flow, you can repay it faster. The faster you pay it back, the quicker you can borrow against it again.

This structure allows you to stay in control of your cash flow on multiple levels, making your money work for you in the most efficient way possible.

If you’re interested in learning more about how this process can work for you, your family, or your business, visit our website at tier1capital.com, where we offer a free web course on cash flow management.

Remember, it’s not about how much money you make—it’s about how much you keep. And that’s what truly matters.