We're Thankful for 150 Episodes! - *Thanksgiving & 150th Episode Special* - (BWL POD #0150)

the life insurance policy and then the speed of How many of those deals can you do? And she just had a hard time understanding that hmm, that's a shame, you know, it's all conventional. Thinking about conventional finance um, so the struggle is real, yes, it is, certainly, by no means is the job done. I remember one client, you know very, very few of the people who started with me, they stop and like a handful or less, and only one of them was a cool young guy, he was super preferred, you know, a big premium on relationship to his income, I mean, and I enjoyed talking to him and working with them, he's great, something like a month, two months later, not long after, he got married, oh yeah, new opinion leaders, uh, yeah. the medical student fiancé said what are you doing?

Yeah, get rid of this, well Ryan, I just want to make her happy, okay, you're making the wrong decision, but it's up to you, it's your private asset, you do with it what you want, that's one. of the benefits you can get if you want to go out and here's another one you can go with, yeah, but yeah, it did, I mean, that still happens, you know, it's not perfect, no, it doesn't happen often, but it happens. and you know, that brings me to something else: I'm very grateful for the noise that's out there, you know, I talked a little bit about the noise and the client exclusive event and you know, the number one internal struggle I don't like to hear.

Myself on these podcasts, on these

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s, but you know, I talk too much about the noise and I'm not asking for an answer. I'm not talking about me being right and um and maybe justification, self-justification and you know, just looking at considering. Nethery, why are you doing that? You know and uh, you know, you know. I like to think I'm well-rounded and balanced, so I don't want to do anything too well. I'm grateful for noise, they serve a purpose. I know I go back to Jim Rohn and you know everyone, my father, my dad, everyone can teach you something, some will teach you what not to do and some will teach you what to do at Jim Rohn.

You know, we all serve as a warning or warning. example that you can learn from both a warning of what not to do and an example of what to do and the noise because I know it's very broad, but you know the canvas is big, so I'm going to paint with a wide brush, um, It prevails that your newly married client she comes with her opinions and her knowledge, um, and her resistance that we all have to knowledge, that goes against what we believe, maybe it's the truth, so it's there, so I'll continue talking about it.

It is like that, but in my opinion they have a purpose and it is a warning of what not to do. You know, I recently came across a quote on Facebook social media from Adam Smith and I haven't looked into it to see if it's actually his, but he was attributed Mercy to the guilty is cruelty to the innocent and I think I love it as soon as I read it and say yeah and I don't know if that's me looking for self-justification but if so I'm okay with that because I think it's okay. Mercy for noisemakers is, in my opinion, almost violence towards the innocent, so I will continue to talk about the noise and point it out, and there is a lot of that out there.

You can go find it, it will follow you, track you and monitor you. Just look at social media for too long. The AI ​​tracks your eyesight and how long you spend here and there and they. I'll serve it to you, um, I get it with different financial organizations, like those organizations that serve the advisor, they want you to join their group, oh my gosh, yeah, it says it's my entire Facebook feed, that's it, yeah, they've discovered the infinite. Bank account of all the IMO independent marketing organizations across the country that want to sell life insurance or whatever their other products are, but when it comes to life insurance, they have figured out how to spell IBC and they have even figured out some of them who created the concept. who had the vision more than 40 years ago and now know Nelson Nash and therefore will discard his name, yes, Ellen, how about the books?

Oh my gosh, everyone has a book, a new way to know the things they discovered, yeah. always yes, but there may be a cursory mention of Nelson in the back or under his breath or somewhere buried in the work they've done and it's hard to rock and splash and I just mean coming from an academic. Background I don't know if I'm simply carrying biases, which could very well be the case, but attribution of where I come from is extremely important. Are you presenting something that you say is original and it doesn't give the impression that it's original not being proactive about it that to me is like it's embarrassing yeah it's a Death Note in academia isn't it? yeah, well, I mean, more and more it doesn't count anymore, but it used to be yeah, that was like the cardinal sin was copy and paste uh yeah, the financial industry and I just IBC is, I mean, marketing in general has a lot to learn about that, uh, I mean, you don't even have to cite well in college I'm supposed to, yeah, when there were standards in college, yeah, look, while I was having this noise up here, I got a couple of comments I can't.

I don't know if we're far enough away. I like to put in You know these kinds of comments about halfway through an

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, so only the real listeners are really good at enjoying it. That's my thought, but here's a comment about if I go back to this

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episode, but there are over 200. videos on the banking channel with Life, so this is a shorter video that was recorded several years ago, the concept Infinite banking is explained in four minutes, okay, I know it's a little clicky, but at that point the AV a little, yeah, so I'm learning from this guy his comment is or was he asking a question or giving information it's like uh, can't you learn much by asking questions or answering questions or am I missing something, okay, so I, who knows?

If he even had the attention span to listen to the full four minutes, who knows, I think not, because he makes another comment on another video that is not the same, that was actually the original. Are you asking the question or giving information? No, that was yeah, yeah, okay. I back that guy on who he is, I don't really care, that was a question, here's another troll that comes up behind him and makes a comment, he says this is brutal, right, four minutes, yeah. Smiley guy, everyone sees me get active on the podcast when James. says something, the way to activate James is to leave a comment that could be considered the noise. uh, maybe there are other things that trigger me too, but this guy goes on and makes a comment on the same videos that I'm hoping to make. to access my own money this guy didn't explain anything in four minutes he finished every sentence like he was begging his wife to forgive him I'll explain it much quicker it's a scam I don't know I don't know what that means well it means he has me confused with the men in his family or with himself, because they begged his wife for forgiveness at every opportunity.

I guess I don't know, but I'm not even sure if he's married because he doesn't wear a wedding ring and neither does his wife, so I don't know, but you know, at least have a legitimate comment or a legitimate question, yeah, sure, I don't mind legitimate comments or legitimate questions, or many of the comments. They're really good, yes, they really are. I agree with what I want you to know since this is a 150 benchmark or a Milestone episode. I want some things to have come up that we just talked about and that I think have been progressive. more crystallized in my mind they have become more artistically precise and articulate and I think they are, I don't know, revolutionary, that may be an important word, but they are, I mean, it's a big deal, I mean, there are certain ways of approaching design. of policies. or yes, ways of approaching policy design, certain trends, certain dynamics that are good to take into account and that have emerged in particular.

You're in my conversation about these things and a lot of them are just based on things that you. I've said my credit gets my attention and then it's like, wow, don't skip that and that needs to be crystallized and specified, so I've got three of them here that I think are pretty important. Number one is the idea. that anything done to an underlying base policy introduces some degree of fragility, so whether adding a Rider term regardless of the type of term, whether adding a Pua Rider as anything above the base policy, will introduce some idea of ​​fragility and I know the word fragility is metaphorical, I get it, but fragility from a future tax perspective, a lot of this is under the umbrella of complying with regulations that discriminate between modified endowment contracts and unmodified endowment contracts Max and non-Mexicans, so when we talk about introducing frailty, we are talking about managing the non-Mexican status for the life of the policy and then including it within the implicit of that is what you might have to do unexpectedly in the future, deviating from their original plan to be able to preserve that non-Mexican state and therefore the idea that whatever you do to it there is another idea here is that there is no way to guarantee that a Mech will not be caused in the future, no matter what There are things you can do on the sidelines to minimize. the likelihood of this happening, but I think when we talk about structure and things like that, in a sense, there is a certain degree to which this kind of declaration of anything that is done with an underlying underlying policy introduces a certain degree of fragility.

There's a certain degree to which we assume that maybe it's kind of obvious, but it would help to restate it clearly and present it because if you start there, that really sheds new light on the question of the Premium structure. I know if you come in saying because the modified endowment contract will do it. I mean, it's terrible, terrible, terrible, attack status. I get it, but when do you really have teeth? Well, it has tea, like it hurts more when you have excess cash value. of the cost basis when you have a large unrealized gain, as they like to talk about it in the policy, well, when will it be?

I don't know late in life, you know, maybe decades after you start this whole process, etc. you know is that when you wanted to have an unexpected tax problem like obviously it wouldn't be too bad, you know, so I think we skipped a lot of the fundamental framework around the premium structure and this little corollary of the idea that anything that is do with the underlying policy introduces a certain degree of fragility and helps mitigate that. I'm glad you got three points because there's a lot more to it than that and then let me, don't get ahead of myself, I'm going to get to the other one. one is okay, okay, okay, okay, but not only is the fiscal status of a policy a right that adds fragility, changes the fiscal status, but it is also an and or primarily an and that will be these structures with which I'm talking every time you add these policy writers and limit the premium you can pay.

I don't care what that illustration you're looking at when you press print says, it's wrong Dividends are going up Dividends are going down and I'm sure you're going to talk about the effect of that, um, it's human behavior too, so Who wants to see a 30-year flow of 100,000 premiums or ten thousand dollars or five, although it doesn't matter what the price is? The size of the premium is, but you're looking at an illustration that potentially has decades of high premium and in tune, let me say this and no one wants to see that, but typically, based on your basis, it doesn't take decades for the cash value It is not above your base, yes, it is years, yes, not decades, but the further you go, the greater the effect of that fragility and the negative consequences.

Does it make sense because of the potential impact? Yes, absolutely, it's not just the Mac, but you too. limit your ability to pay future premiums Now you may be okay with that if you're 23 and looking at a 10,000 premium until you're 75 or 80 or 100 or 120 or whatever mm-hmm, but just go talk to your grandfather your grandmother your uncle your aunt a successful business person and ask him how much capital he needs or wants to have access to when he is 40 years old 50 years old 60 years old 70s and 80 years old, it does matter and will matter, so not just the tax status but also your ability to even accumulate formula Capital IE, pay a premium, well, there are cases where it is because, to mitigate and preserve the default status in the future, one of the things that may have to do with a Overly manipulated structured policy is to reduce Pua. premium potentially reverse Pua's previous premium with Partial Ceramic which is limited and you can do that, but exactly because you're going to give consent, I mean, let's get that out of the way, I mean, okay, so you're late in life, you have a tremendously manipulated structure. policy too little to base unusual term rider you know, financially designed to allow the agent to print an illustration shown as non-mechanical with these absorbing high premiums with very little basis you get in the future, there is a fluctuation in the dividend scale you did not pay the premium exactly as illustrated at the time of year the illustration assumed you paid it, so there were deviations between what was assumed to happen and that was what was assumed to happen with very precisely calibrated and what you actually ended up doingdeviated to a certain extent, so you follow the path of human behavior, yes, you follow the path and find out if you don't reverse the previous Pua or if you don't reduce the Pua premium that you cause. you may cause the policy to become a Mech and you are at an advanced stage of the life of the policy when the potential idea of ​​some form of distribution is an income through tax free loans is on the table or even just a withdrawal to the basis, right, right, so you said there is a limit to what you can do to avoid mechanical status late in your life in that type of scenario and what I thought is that you only have a limited basis in the policy, so maybe you can get all the premium back. paid through partial redemptions or cash dividend distributions, well there is a limit to that and once you cross the cost basis, once you start receiving excess distributions, withdrawals or dividend distributions that exceed the cost basis costs, well, now you're triggering income tax again, so you can make withdrawals, yeah, you limit, you know, there's a reduction, this kind of reduction of the range of possibilities, yeah, stay in the lane, stay within the range of the bat.

Narrow. Oh, you mean that reduces, yes, as time goes by. goes on and then one of the ones that mentioned reducing the amount of paid reduced space, but paid policy that won't always necessarily prevent a map, it doesn't even cause one, it absolutely could cause one, oh that's it, you have to wait a little bit , wait. Totally neglected eh the possibility of that causing a Mech to go off the more jankier these policies are built yeah why is that reduced face amount paid and it's just a sad note that your company even pays a dividend on an rpu policy oh wow, what do you have, who, what financial, you know?

Yeah, neither does his agent. Just saying, but that affects, so the face amount reduces the probability of fulfillment, increases the dividend purchase, the death benefit, hmm, dividends are not paid. It is not purchasing the death benefit that directly affects some completed calculations. Does your company even perform secondary or tertiary Mech testing in that illustration you're seeing? Yes, companies do a very poor job of explaining or at least communicating to the client to the advisor if Continuous Mech testing is done on their illustration software, but let me point out that yes, an rpu could cause a Mech in the future.

That's what you know, because that's not the only right thing to do: deleting a Rider term or expiring a term. The rider could also do well with the idea of, generally speaking, the idea of ​​a modified endowment contract too much cash value too soon relative to the death benefit the correct cash value is getting too close to the death benefit too much soon why too soon well eventually the cash value equals the death benefit at age 121, so they are getting closer to the cash value, they are getting closer to the death benefit over time, but if the cash value is approaches too quickly and the wise eyes of the US federal government and the IRS, then the policy becomes too investment oriented it becomes a modified endowment contract tax status the tax treatment changes well, what What could cause the cash value to be too close to the death benefit?

Well, it could be a reduction in the death benefit. Well, what kinds of things reduce the death benefit? Benefit well a reduced rpu payment in one of the non-loss options, you reduce the death benefit to pay the policy, that is a reduction in the death benefit and if, if, if, the debt, if, if, the magnitude of the reduction in order. paying that initial death benefit is substantial enough, so it's perfectly possible and I've done iterations of artwork to build this up and show this, then you could cause a Mech that otherwise wouldn't have been caused, right? um and wait, you mean, wait. you take the time, Mr.

Griggs, are you telling me you take the time to develop these things? Well there are even things that you can't do with the software that I wish you could do, like there were NAIC regulations because here they are something else correct and uh an increase in the dividends an increase in the div not a decrease an increase in the scale of dividends Beyond what is illustrated, that could also cause a Mech because there is a deviation from the illustration, so any deviation includes and look around. What's going on? Now interest rates have risen for the first time in 50 years and may remain sustainable.

Increasing maybe not but maybe yes and maybe dividend ability maybe maybe there is one and I've had conversations with the lead product designer about one in particular. company about this in particular, uh, about what that conversation is like because it's a new conversation given the last 40 50 years of interest rate evolution, there's this regular bearish training look at the 10-year treasury bond. for the last 50 years. just with a constant slope, a constantly declining line and recently with what's happening with the Federal Reserve and their friends who are starting to go up, okay, well, if that kind of thing supports the dividend scales, they follow the environment current interest rates, albeit with a delay, but they do track interest correctly.

The rate environment informs the nature of the performance of investment portfolios. Life insurance companies are investing the premium dollars they receive to generate a steady, long-term oriented return to pay claims and support guaranteed cash values, which is why this often occurs. a bond portfolio at a life insurance company that has many different bonds that have been accumulated over a long period of time, each has its own returns and as new bonds accumulate in the current environment, you will have returns corresponding to the current interest rate environment and eventually, if we do it for long enough, the current and recent interest rate environment will affect the overall performance of the portfolio, which in turn will affect the surplus, which in turn affects the dividend. scale and therefore dividends return to the policy in the form of Pua to buy more death benefit and cash value, so there is a set of logic that says that what is happening in the interest rate environment will affect the death benefit and cash value. growth in an individual policy, each of which is subject to ongoing Mech testing, so even an increase in the dividend scale could alter the cash value and death benefit that is shown relative to what was originally illustrated. shows in that policy over time, well, National Association of Insurance Commissioners and all their wisdom, by the way, the NAIC is populated by a bunch of state bureaucrats, the commission, the people who run the commissions, yeah, so they're just government officials all the way, they and there they were and they say, well, you know, we don't want the broker to show and I get this, we don't want the broker to show an inflated dividend scale to a client to establish, you're talking of what you would like to be able to do with an illustration, yeah, I want to be able to show, let's assume you know what I mean and I say look, maybe they restrict, they say you know you can't show this to a client, okay, not even I care about that, I mean, I do the illustration. of a lot of services to like, you know, show that what we've talked about aligns with what we're asking for and our goal is absolutely not to set expectations based on an artificially inflated dividend scale.

I understand. I mean we've probably been more critical of dividend inflation because of the way that there are ways for companies to inflate dividends. It's called a dividend multiplier. It already exists and the NAIC doesn't understand it that well. That's just one way. There are more ways than that, oh, how about we do it? I love, you know, we're going to index a dividend to the S P 500 because, oh, the life insurance company wants to be a financial services company and then there's even that which further covers their lack of profitability during a company for a year. certain, I don't know, but that would add to you and even another layer of uncertainty because all those dividends go back to the people, okay, so yeah, I'd like to see what happens with a certain policy, you know, let's say La same age of insured assumes the same total premium outlay and then analyzes iterations with different structures under different dividend scale assumptions, including those that exceed 100 of the current scale, so it is better than would normally be of interest and better than would normally be illustrated. and look at those where the dividend scale is lower than what would be illustrated currently to see what happens to the next Mech status in the policy for a long time and you can't do it because of these regulations that prohibit showing clients skills of Inflated dividends, so it's you.

I know there is a pushback. Anything you do with an underlying basic policy introduces a certain degree of fragility, so it's okay, you know you want all that cash value from day one. At what price? How much uncertainty are you willing to face? How much uncertainty? a fiscal perspective is the future, you are willing to deal with how robust you want this to be, how predictable, how aligned with future expectations you want this to be, and then in discussing this with the other, not this in particular, but something related. point with another agent. I, uh, new agent, it occurred to me that, looking back on the last five years, I don't know if this is totally the case, but if it's not 100 true, it's very close, I don't know. that there is only one client who could not have changed the structure of their policy 10 points more towards the base and away from Pua and they would not have noticed the difference, yes, in the first years exactly because very few people who are actually doing IBC practicing what Nelson taught, you know, running to the company to get a maximum policy loan on the first day, right?

I think there's a certain degree to which we overestimate our fear of illiquidity, yeah, you know, there's that kind of and it's exactly what you know Nelson's rules, don't be afraid to capitalize on that and it's Parkinson's law, according to my experience, everyone, if not all, most people you know, once you start paying a premium, they intuitively recognize that you know and then when they hear in my opinion, I like legitimate information that disparages the 1090. true , and if you look at why and I look, I've shared this with you, I have agents who regularly say James, you know, you know, can we schedule some time?

Can you share with me the dangers of a 1090 or these types of policies? They don't know well, but for the person who pays a premium, enters the second or third year, they intuitively see, know and understand that it is as if. It doesn't hurt me at all to pay a higher base compared to a lower base; In fact, it makes more sense to me now that I should pay a higher base and for the last few years people call all the time. You know, we appreciate that you communicate with us all the time every day and some are new, most are new to this idea of ​​becoming your own banker, but we get a lot of refugees that you've described in the past, it's like, well , I.

I did this, it doesn't make sense to me, what you're saying makes sense to me, so I want to do that with you, you know, I want to work with you, yeah, um, and there's an understanding, you know, number one is once Pon your hand in the pile and start putting money in, you know the sphere disappears and then when you experience the increase in cash value in a structured property policy, you know it and you feel more comfortable interacting with the company and what. they're, they're portable online, you know your comfort level goes up, but the company is doing what you expect it to do and it's very easy for a company to pay the dividend that's illustrated in the first year or two, the first one.

In two or three years, they're all pretty accurate, right? But as your comfort level increases, you start applying these principles and start funding things honestly and legitimately, without trying to make this idea a plan or just a plug-in or both, whatever you're into. doing, like you're really building Capital to become your own banker and once you start doing that, your confidence skyrockets, yes, but it's intuitive. I'm telling you from experience, of course, a small, thin base is not good, but you may not be able to articulate why you fully understand why what's going on behind the numbers, which is exactly what you're delving into, there's a connection with another.

Point here and I had this conversation with a client recently who went through the whole process and the particular product that we were going to use was paid at 95. And one of the questions he had was, why 95? Wannago to the premium the higher the correct margin and you can say, well, why is that like that? Well, there's a really wonderful integration with the idea of ​​diminishing marginal returns in economics, the more you make, the less you should be. go to consumption correctly, the value of a marginal dollar in terms of the benefit it can give you in the form of consumption decreases at this time.

I understand that if you make 15 grand a year, you know getting to 100 is a big deal and it's not like you're going to consume, you know less and less as you make 101 and 102,000. I get it, but generally speaking, Assuming you're taking care of your subsistence level needs, that's what I call the need for immediate liquidity, right? groceries in the refrigerator and gasoline in the car and you know, oil and oil in the vehicle, all that kind of stuff you know you're immediate, everything in New York and the state of New England, you know the basic needs once you you have solved once. you have enough income to handle that kind of thing and you are starting to save you have started to defeat Parkinson's law you are consuming less than you earn as the income level continues to increase the amount that goes towards the premium should increase it is just to say that as you do better as you earn more as you become more productive you should capitalize more as a percentage of what you earn and that's a natural thing.

The good thing about that is that it is something natural. derived implication of Parkinson's law and sets a path, sets the path of expansion in the future, it sort of tells you, in general terms, what you should try to do, there will be expansion of the system, there will be additional policies for a long time. As this trend toward higher incomes each year continues and you know that's why Nelson had 49, a good part of why Nelson had 49 policies at the height of his ownership, that's why each of us owns multiple policies. , you know that your compounding behavior, which is say your premium payment should increase over time and, gosh, align that with the other two corollaries, e

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ly the second one that the younger you are, the older you should be base.

You can imagine this set of policies purchased over time and what they would look like given where you were at the time they were purchased and what the income was like at that time, eh, it's nice, there's a good track record embedded in that, it's very natural as you practice this concept, I mean, and I have a couple of comments about that is practicing honest banking and that's it, so in my opinion you're not an honest banker if you don't do that or move in that direction and then another one comes along. comment that it is like Parkinson's. every day I don't care how rich you are, oh yeah, I don't care and in fact you know the richer you get, you know the problems and challenges just change, you still have them good, and you're listening to 250,000 in the bank 500,000 in the bank a million dollars in the bank you know it as well as I do that is not the right place to correct it and the idea seems to me in my experience over the last 31 years that even rich people quote in quotes um they are recognizing, they are starting to recognize, they continue to recognize, more and more people are starting to realize that they are exposed to this idea of ​​the concept of the Infinite Bank and they examine it to the nth degree, just like the individual who makes 15,000 a year and the harder you look the deeper you look the better it looks so your three points are really good and I appreciate you bringing them up um when you think about that and okay I'm going to say it I say it all I don't say it enough , actually, these long-form podcasts, you know,

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, we're having fun, we have a great relationship, we interact very well, but you can listen to them more than once and quite often you should.

Here's a section you should listen to. more than once, okay, so Parkinson's shows up daily and if you're talking about the marginal value of dollars, if you're in a business and even in your home, if you think about this look, it might take me X number. dollars to trade correctly and there is x amount of dollars in expenses to operate at that level, so marginally above that threshold, the expense is not much higher, so the profit value is higher, so it makes sense , it's like Matt, the beginning of Matthew. those who have more will absolutely be given yes, and that's in Nelson's book.

So are you really being a good steward of what you're doing financially if you have? I don't mean lazy money or see if you have lower your capital requirements just because you have a lot. um it really is, I mean the integration of Matthew's principle plays out very well because all the growth and all these policies are compounding, so if the total amount of if the premium level increases as they increase income. So there is essentially a compounding effect on your net worth over time. Exponential curve there and the slope increases, like look, yeah, there's an exponential curve inside cash. the growth in value of a whole life policy that pays dividends and then imagine there are multiple policies and then that and the total premium number itself increases, yeah right, if you were to look at the added cash value, add it all up, That's an increase there. it would be an increasing slope, logically speaking, and an increasing slope, a kind of compound compound effect speed, yes, then, the exponential, as long as you comply with this, as long as you comply with the warning of continually defeating the law of Parkinson's and capitalizing more and more and there is a feeling because you hear these stories and I really don't like it because it's like you know one of the evils of capitalism, you know you have the rich with the children and the children are just small.

Hell and you know, you don't know, they're going to waste the wealth of yes, this is the opposite of that, it's like the idea that the balance between freedom and responsibility is like the more you have, you know In that Spider-Man quote, you know that with great power comes great responsibility, like the more you have, the greater the responsibility to manage it well and if that and so, the answer to allowing prosperity to become waste is continuous Financial discipline is to continue capitalizing more and the more and the larger the number the greater the income the more pronounced the more necessary it is to properly manage and capitalize the property and the small and paradoxical and beautiful implication of that is that the more you do that, the greater the capital growth, the more you will have, that will scale infinitely.

You know it's a clue and because you have this idea that I don't want to leave money to my kids because you know I earned it, I'm going to spend it, it's like, okay, and you can do it all day, but you don't, There isn't necessarily one path, there is a logically coherent theoretical path that is realistic and practical where you can challenge it. You know, Disney-Fied, you know, Hollywood's perception that there's something inherently rotten about being rich or having a lot of capital like that, that's not necessarily the case, that's an indication of the breakdown of the financial principles that generated the wealth at first. place and that is the problem, it is a problem of moral principles, it is not a problem of monetary capital and what IBC does and what these principles do that we have laid out here today and that we have laid out in the past episodes that led to this is what gives logical coherence, it gives a structure to that which scales in a beautiful and composed way, all for the benefit of the individual and it's like if you can do that, here's a path you can do and it's one of the best.

The points I made at the client-only event were that as a financial strategy, in a sense IBC is more available to all ranges of economic profiles. from 1.5 million to 150 billion it doesn't matter, yes, let's have some challenge with these insurances, let's put together a group of them to share all the risk, you know, how can it be done, there is no reason to do this every day, There's no reason this can't be climbed, none, yeah, and the only reason this can't be climbed or wood climbed is the space between your ears, yeah, and you know, let me say this too, that it's good news because and that should be exciting for people because If you look at one thing I wanted to highlight, you look at what's happening now in the stock market, you know, the feds decided that Jerome, man, is going to be the second coming of Paul Volcker , hey, cool, you know, the right interest markets. sure let's see how long they're going to last but yeah let's look at the ramifications and they're called economic cycles for a reason you know they're cyclical they keep happening so now you have these people who are in their 50s and 60s who have built this portfolio correlated with the market in your tax-qualified plan or your brokerage account or whatever, and the value of stocks and bonds have funds that got hit this year, getting a kick, worst bond, worst Treasury performance The US, if not in history, has known this for decades. and this is the money, the money, this is what people thought was the money that they were going to live on during their last years of life, really very sad, I mean, I have a client right now and some of them They're a Sometimes I find it a little nerve-wracking because you and I are just working, you know you do what you can in the moment, but if you have someone who comes to you and you know they're of an advanced age, I've got a guy recently and you I know there is a him that has certain circumstances where there is a way out, there are things we can do, but you think about the person that you know has, that has done what Wall Street told them.

They had a job, they were looking for the benefits and they had a stable income, you know, type W-2, they contributed to the tax qualified plan, they invested their savings in assets correlated to the market and now they get it. you're advancing in age, they were told from the beginning, you know you can retire at 65 and, oh, maybe we round up to 70 and you know you'll have enough saved to live on, you know, for that long lifespan until early nine, early In the late 90's and then one of these economic cycles comes along and we've gone numb, it's like that, it's like we've been reassured economically since 08 with wasteful monetary policy, so it sounds like you know someone who's been new to Wall .

Street hadn't been in finance for over 10 years, recessions never happen, right, markets just go up forever and here comes the business cycle, here come the results of a change in monetary policy from our commercial bankers and the Federal Reserve, giving a good dose of reality to that stock portfolio, yeah, look, that's my point, it's depressing, no doubt, but that comes on the heels of these artificially suppressed interest rates, the highest interest rate environment low in recorded history, history went through those 10 years of retirement, oh. Wait, I can't earn enough with a CD or a money market, of course, not with a money market or a quote-unquote safe place to put money, so now I'm forced to look for a higher rate of return to yield Chase Yes, yes, there is no doubt. so I'm just saying these Corrections are following these low interest rate environments that have depressed retirees for a decade, over a decade, oh yeah, yeah, and it's like I want to go back to uh, uh, you know, You can do it.

You know this in many of the economic cycles and everything that is and capitalism is bad and the horrors of capitalism I mean, let's change the meaning of the words, you know, what we have today is nothing more than mercantilism, this crown capitalism is nothing new, right, and then taxes and then inflation, that everyone is jumping around on Wall Street and the Federal Reserve and it's like a dog and pony show and it's like, not only can we do this and run a tractor inside of the business. cycles that are manipulated within the markets that are manipulated, that's the only way that I know and have ever experienced to be able to protect myself from some of those shenanigans that are very profitable for them and that are not going to change, so that's Another which I'm personally grateful for, I don't care at all what the interest rate environment is, oh wait, you've been doing all these loans, you know, these helocs, these, uh, just various lines of credit and the lower, and then in the. all-time low interest rate environment and then you get into Premium Finance, you know well, Nelson did well, he brought us the concept of infinite banking, but now we have these add-ons, HELOCs and all these other opportunities to take advantage of a of the greatest assets you can own, what does that look like now, tell me what a 30-year mortgage is right now, all these young people who were ready to build or buy a house, yeah, and I've talked about trying to buy a house right now.

I mean, tell me, um, yeah, and I have clients who did the HELOC thing and you know, I'm grateful to look back because one of the questions I raise is with people who have done that, what does all of this look like when the interest? Rates go up, I don't want to talk about that because they haven't gone up in 10 years, well, I mean you brought it up,Look at the end of the day people are going to do what they're going to do and I just love them. being aware of things that I think could happen and it's like you know, yeah, interest rates are going to stay low forever.

Okay, you know, here are some things that you know that can be considered and that I've encouraged my clients to do, it's like maybe. they have a HELOC maybe they went out and got a HELOC and a HELOC is a HELOC. I'm not saying it's good, bad or different. I'm just saying keep in mind that we're in the lowest interest rate environment ever, while you're hitting it out of the park with that, you better start building capital. I don't care who you are right now. So if they did, and they did, most of them built, no, they built capital that is accessible and now they are. at the point where they can get rid of the helog where they want to credit or be less dependent on it, that's where you want to be, yes, enough capital, that's independence, that's the solution, yes, send the banker packing , that's, uh, you know, I've said it many times, I mean, my dad said that when I was young he was like, you know, you have to let the banker be profitable, you have to let the banker be profitable and He used to go to his banker with his hat in his hand and then when he was older before he graduated the bankers would come up to him with their hat in their hand what is that word? where can you?

Find that in an illustration, yeah, talking to Nelson, you say it's a stress-free way of life, uh, yeah, yeah, and then you know you also talked about new things, you know, a minute ago, these new people are asking you how many financial gurus do you have in your life who have experienced this environment of rising interest rates after a pandemic and locking down economies in the supply chain and everything else, these guys in the head office of life insurance companies haven't experienced this, most of them have, I'm interested in Look and you know you talked earlier about how the dividend is going to go up and up as interest rates go up, but you know what's going to happen the most? increase between now and then is the interest rate on the loan.

Yes, I know there will be a way we should talk, you know there will be a wave of you know that as short-term interest rates rise, companies that offer policy loans at variable rates, the loan rate will increase and I can foresee questions about that and I just go back. and maybe this will help prevent a lot of this it's not about rates, no it's just not about rates, it's about control over the banking function, it's about volume, um, but it will happen and you know there will be more number crunching. and if. Loan fees are going to increase dividends should increase if they are a well managed mutual.

I think most of it is due to my stress and the time I've held back this year and yeah, yeah, yeah, they keep going, they're like a lagging indicator, what's that like? for Wall Street lingo, you know, but I remember when the first policies we bought, I mean the dividends, you know, six seven percent, oh, waiting, the loan rates were six six and a half six point three five. I get very nervous when talking about careless credit given the credit scales and loan rates are not commensurable, they don't, they don't, that's percentage of what parts per hundred of what yes and the underlying of what it's different so this is just another place you can stop rewinding and listening to because in my opinion you'll be inundated.

You know the promoters that you know can spell IBC and may or may not know who Nelson Nash was and what he did. They're going to beat the companies that have variable lending rates or they're going to beat the company that has a higher or lower dividend and you know it, and you just, my encouragement would be to look through the noise and figure out this idea of ​​becoming hers. banker and where you start are Nelson Nash's books, his first book Become Your Own Banker and his second book Building Your Storehouse of Wealth and then the digitally accessible six and a half hour video of him giving his presentation, that's where you go through On top of all the noise that is, you know, in the IBC imprint, whatever they call it, any new book that comes out with a new title and a new discovery of Nelson's work, um, you could step up, it will be there after that you go to the horse's mouth. all the way to the source, get a good solid base, the noise will still be there and if you walk around it long enough it will be on you which will help you eliminate all that noise while you read the book and become your own baker. building your warehouse as well and accessing and enjoying that six and a half hour presentation and yeah, I'm going to throw this out because I have the question: I haven't listened to those six and a half hours in a long time, if ever.

I mean, I have recordings. from Nelson, but I was told that he references James a couple of times in that video and it was either here or in downtown Fort Worth and there was a seminar that I was at and I only had a couple. of questions recently and they come up from time to time James was who he was referring to, yes, and with a big smile, I say, yes, yes, just look at him, it's my encouragement not to hear Nelson say James to hear what the man is . saying yes and if you're my client and you haven't seen that yet, you need to talk to me, I'll leave it at that.

Well, what are you grateful for, Mr. Griggs? You know it's Thanksgiving episode 150, episode 150. foreigner well, I mean, I'm grateful to be a part of this. I'm grateful to have the opportunity to sit across from you and, you know, help articulate some of these very powerful little kernels of wisdom that I think should really guide the trajectory. guide the theoretical layout into policy design and I think you'll know what I'm going to do, there will be more to come. I want to make a comparison video. I recently discovered that you can access all legally regulated forms published by insurance. companies as part of public information yes, so we will do it.

I'm going to do a comparison of like 10 of the companies you may have heard of in the IBC world, not looking at the illustrations that everyone obsesses over, but at the actual contract language. and we have pointed out that not all writers of Pua are created equal, not all writers of terms are created equal and what does that mean? Well, I'll show you and you know that also led to that seven part whole life insurance. series of mechanics that a lot of people have come across, so I'm very grateful to be a part of something that, by any measure, is changing the way people implement IBC and is not, you know, reviewing it. not to recap, it's not about rebranding infinite banking, it's just a matter of, as I tell clients, calibration and optimization, you know, like Nelson said, if you know what's going on, you'll know what to do and , in my opinion, one thing that we, as agents, could do is one.

What it should do is simply do a better and better job of explaining more precisely and clearly why things work the way they do, and if we understand that, then the direction is clear. You know, if you're thinking about your city driving. If you know your city, you know how to get where you are going, if you are visiting another place or are looking for real estate somewhere else and you don't know the city, you won't know how to get there. where are you going, I mean, this is something that sometimes they are very basic, but the more you understand the territory, the more familiar you are with the logical framework and the landscape of possibilities in this particular company, the more the direction is clear and we get in a position where I don't have to tell them what to do, they don't have to take my word for it, everyone can remain autonomous and independent and we do it in a mutually beneficial way. pursue a better, more prosperous, reliable future, that's incredibly cool and it doesn't depend on who you vote for or what Congress is doing or what happened on the second Tuesday in November, whatever it is and none of that matters and you can and can spend as much time as you want in the swamp, and then there is a small domain of peace and financial control which once you complete all the setup and learn the basics is really quite simple, you pay a premium as you say the problem. is the problem, the bonus is the solution, you know your need for capital, it's going to One Direction you know, and you can accumulate more in a way that benefits you in the long run, so I love that you know that you grew up in the city or Al living in a city then you are aware of the direction of how to get from one place to another and you may not even know the names of the streets you are on, let's think about that, so I mean, no I don't have to be a life insurance expert, if I know how to get from here to there or how to build the street, you know, I don't care at all and yes, I know that we need taxes that build the streets, the same people that build them.

Now they'll just do it more efficiently and cheaper, okay? It's like you don't have to know every detail. Don't you have to be an expert in life insurance? I mean, just think about how many streets you drive each day. You don't know the name now. You know you're going to look at the names of all these streets next week, but you're still going to get where you want to go very efficiently because you know the landscape. Yeah come on look I'm

thankful

for you the listener I'm

thankful

for the trolls the naysayers and you don't really know I don't know these guys I just know that one of them looks like it's like it's what it is . it's uh and I'm being I'm being secretive yeah oh my gosh but look I'm grateful for you the listener I'm grateful for our policyholders our customers uh policy orders I'm grateful to be a policyholder and you know I I am grateful that you have the opportunity to discover the idea that you can become your own banker on a you and me level and it is very powerful.

I'm grateful for my wife, my family, you know our office and our team, and you know that more than anything. I'm grateful for the creator of this universe and the relationship that I have with it and the opportunity to practice in what's left of a free market that we have, you know, yeah, and we had the opportunity to do that. This I mean you can really become your own banker and we get caught up in that, you know, in the political or philosophical discussion, you know there's never, you know there's always government and there's taxes and inflation, it's always been part of the system. monetary and political scene it's like, oh, that's true and then, but there are always things you can do on the margin, we have to act at a particular time and place and this is available, there is a path available, yeah, yeah , so okay, what else do I go for? to go have a barbecue, I think, and where are you going?

Any name, are you going to be local or real estate, uh, certainly not local in this town, uh, tough, Mr. Greg, uh, they don't watch the podcast, so that's fine, but you live in Texas for a long time, uh you can become a barbecue snob and I'm okay I'm probably there yeah okay okay barbecue on your way to what I think I talked over you uh to look at different potential markets for goods roots, like raw land, probably not totally raw. I don't want to build supervision of a construction on raw land. I don't think you know that cryptocurrencies are sinking and so are precious metals.

Will you stop by? Yeah and you'll add it to the list of things I couldn't care less about, um, that's what I'm doing. Happy Thanksgiving, enjoy the holidays, see you next time abroad. Thank you for joining us on the Banking with Life podcast. If you're watching on YouTube, be sure to like and subscribe. and click on that little notification Bell; Otherwise, join us on Apple Podcast and Stitcher for weekly content