We Finance Everything, Where do you "Bank"?

Jared: Well good morning. Welcome my friends. Thanks for joining in. It's been a bit since we've picked up an episode here on creating tailwinds, but thanks for checking back in. we had a very unfortunate scenario here this morning where John got really sick. So you know, thinking about John this morning to make sure he's alright. It's no fun to try to plug through any of the projects you may be working on if you're feeling sick. So saddle up. Let's chat. Thanks for tuning in. So I think what I'd like to do here today is maybe just pick up with some some updates over the last month or two and also maybe just some Some conversations I've had with folks recently and how that can maybe be helpful for anybody else that you know, might might be beneficial for them. So, you know, update wise with with with the summer, it's been a crazy summer around here. You know, we've got kiddos that are all in that preteen area. So you can imagine our house is absolutely bonkers on the short two months that we get, you know, for summertime with the kiddos. So every minute we're doing something or or moving somewhere else or getting some other, you know, fun opportunity to to just pour into them the few the few summers that we do have with them. I know if John would hear he'd say that time is fleeting. It goes by fast to to take advantage of it and to, you know, to to be present, be a part of that. So that that's certainly been a huge part of what's been going on for me on on my busy in my summer. And I know John, I don't want to speak for him too much, but He's been traveling a ton. which is gonna be awesome. As soon as we pick back in and we can meet together, he's got some really, really unique stories from some European travel and and again how that kind of ties back and loops back into infinite banking concepts. So apologies for you know missing a couple of we had a pretty good two week cadence going. apologies that we've missed that, but we're gonna get back on the horse, back on the saddle and and And keep plugging on with with a variety of of great infinite banking concepts topics. So one of the the conversations that popped up recently that was a a really, really great conversation and it kind of brought some clarity not only to me but to the to the topic as well. It was really talking about the idea that a whole life policy is useless without infinite banking concepts. Now that's that's a broad statement, right? But what they're saying or what what's trying to be illustrated there is we can talk all day long about the the vehicle that is dividend paying, whole life insurance with a mutually owned company. You know, we can talk the goods, the bads, the positives, how to make it work, how that works in your day-to-day, how you can use that over five, ten, fifty years. but when you when you put that all together That in itself is a product. And without the process that is infinite banking concepts, all of this is moot. Right? You may be able to find a great agent that sells you and sets you up with an amazing whole life insurance policy. You were excited, it worked great, was exactly what your family needed. But that doesn't mean that you're now practicing infinite banking concepts. So it's It's mutually exclusive that one is not the same with the other. And and separating those two is really, really important. Now, dividend paying whole life is something that we're very much a fan of at infinite banking concepts and at creating tailwinds. we use it, you know, I know John and I have multiple policies within our own family that are that s set up that way. But that is rooted on the understanding and the knowledge that we've gained through the Nelson Nash Institute, through reading Becoming Your Own Banker, and applying those with the help of a practitioner to those whole life policies. So it was j like I said, it was just a really interesting conversation recently with, you know, someone that said, Well, I I can go create that on my own. I don't I don't need to work specifically with you or or with any practitioner. to which I said those those are not necessarily mutually exclusive. So it was a great conversation. It was not combative in the least. but it it also just brought brought to the forefront, you know, if if you're if you're considering going down this path, you really gotta take the time to learn the process. The product itself, you're gonna be an amazing fan of once you get up and running and and rolling. but this is not a walk into your local insurance company and say, Hey, I'd like to I'd like to buy one of those infinite banking policy contracts. it that doesn't exist. You know, we're we're attaching an education through the infinite banking concepts to the vehicle that is best suited for those concepts. And it just so happened to be di that it's dividend paying whole life insurance. So that that differentiation is worth just sitting with to know what that looks like and and how important it is to dive into the education and be a constant student and to never stop learning about all things in general, but especially if you're gonna apply these concepts to your life and to how this works, that that you want to be able to to never stop learning and be a constant student. And and that applies to infinite banking concepts as well. So, like I said, just a kind of a quick overview on some of the other, you know, conversations that have been had recently. So you with that in mind, let me transition to another another conversation that was also had really about how you perform your banking function for your family. How do you store your wealth? How does your capital come into your environment? And then how does it leave your environment? And so a really, really important thing to recognize or to at least have on the forefront of understanding is that you finance everything. You literally finance everything. Now, in the common sense, finance, you would think, well, if I'm gonna finance a car purchase, I'm gonna go get a loan from the bank. And after they tell me what my monthly payment is, I'll pay that back over a certain amount of time. That would be the common understanding of that you finance something. But what infinite banking offers or at least tries to get you to think about is that even if you're a cash payer, even if every single dollar that comes into your environment from the work that you complete now leaves your environment in the form of cash and you have zero debt, you are still financing everything because That lost cash that leaves your environment when you hand over that cash, there are interests that could have been earned or an opportunity cost of keeping that cash in your environment. And that's your finance cost. So you finance everything. The need for finance well exceeds our need for death benefit, Nelson would say. And yet it's important to lay that groundwork of, you know, we finance everything. So Just understanding that alone, you know, it can be an important learning step into why we talk about what we talk about and and why we address these issues. You know, I don't I don't think it's a great visual, but it made sense to me to say, well, what if you received a bill a year from now for the interest that you didn't earn for all that cash that you paid that when it left your when it left your environment? What happened if you if you received a bill for the interest that you didn't earn? Now it's gonna say paid in full on the bill because you've already paid it. You've paid it by allowing that cash to leave your environment and walk out the door. You know, you traded it for a good or service, you received that good or service, but that money is gone from your environment forever. There was no way to capitalize on on keeping it within your system. you lost the opportunity cost of what that could have earned. So that concept is really important, that idea that we finance everything. And so the the most recent conversation that I had moved again to to another concept of well, so if we finance everything, then then where do we store that capital? Where do we store our wealth? You know, the the the young man that I was talking to, who is a really, really smart person, he said, you can bank with anything. I was like, well, what do you mean bank with anything? He said, You can bank with literally anything that stores capital. You could choose a mayonnaise jar. You could choose your mattress. You could choose a checking account, a high yield savings, you could choose a home. You could choose securities or stocks. in in our world in the infinite banking world, we lean on the dividend paying whole life. For all of the benefits that it offers. But every single one of those venues is a place where you can store capital until you need it. So then the question becomes if you could use your mattress or a high yield savings account or dividend paying whole life? What if you just laid all those out together and talked about where you stored capital, how easily accessible that capital is? What benefits it provides? Is it does it have tax benefits? Is it affected by market volatility? Are there, you know, concerns that it may or may not be creditor protected and inflation protected? is it is it easy to manage? Is it reputable? Is it private? These are just a couple of items of which you would compare each one of those venues together. And then after you've made that comparison, well then Pick the best one. And I can tell you because it's way the way we do our our finance, the way we we've learned to do, is that dividend paying whole life insurance beats all of the other ones. Hands down. And yet it has the worst name as well. So it provides all of the benefits that we just mentioned. And yet, because it got some bad press in the eighties and it's had a couple of other you know, bumps in the road along the way and maybe even continues to be sold by people that are pushing something they don't understand. If you can get past a couple of those items and look at the bones of just Danella dividend paying whole life insurance, you will beat every single one of those other places where you store wealth. Just like we said, you can bank with anything. You know Maybe someone just wants to stuff cash into their mattress. Hey, that just became your bank. You know, another idea of how you turn your house into your bank is that every single mortgage payment you make, you're building equity. And some folks really want to pay that mortgage down as quick as possible. Well, in essence, they're just stuffing cash into the walls of their home. Now they're not. That's not actual cash that's going into the walls, but it's cash that they've earned. That they're now turning back over to the bank and saying, I'll store my equity of this home in the walls of that house. Which is great. that's an awesome place to store capital, but how accessible is it when you need it? So when you want to get access to that capital that's stuffed into the walls of your home, what's the process? Well, a lot of folks know the the process is a HELOC or you know The other processes that are involved on how do you access those funds look really similar to what a HELOC looks like, which if you've ever gone through that process, you know it's a lot of paperwork, it's a lot of bank asking questions, it's a lot of they need to understand where it's coming from. again, there's all kinds of different products that access the equity that is in your house. The HELOC is not the only one. but you get the idea that that you have to basically Mother May I with the bank and say, Can I have access to the capital that I've been stuffing inside the walls of my home? So I that that sat with me so so it just it just hit hawk close to home when they said you can bank with anything that I just wanted to bring that and share that because it was it was it was just spot on for me. This idea that, you know, I know my my grandfather and and and even generations prior The whole idea of a mattress being a bank, that's not too far away from our gen from our household. I was very fortunate to grow up in a house that my dad taught me a lot about of financial decisions and financial choices. I was very blessed with that. And yet I I'm confident that that there wasn't too far behind generation wise where you know, someone would have known that they could have stuffed some cash underneath a mattress, and that that was their form of banking. So all around just just a really cool concept to bring that in. And then so last one of the other the parts that it that would apply for today, one of the other items that can be worthy of chatting about is are you creating a spot for future windfalls? So this comes right out of the book by R. Nelson Nash, Warehouse of Wealth. And the idea that we already mentioned was are you building a place for your future windfalls to occur? What what might a windfall look like? Well, I mean, for some it may be getting lucky at the casino and and hitting a jackpot. That one's not very likely, but it's possible. some other ones that may be more realistic are maybe you you own a business and that business has been slowly maturing over years and that's grown into something that's got a significant amount of value in it, at which point you might consider selling that business and you know that the profit on that will be large. That would be considered a a windfall. What would else be considered a windfall would be maybe someone else passes away within your family that did have a significant life insurance or a significant estate. and and you were listed as a partial beneficiary to that. this is money that would be showing up that was completely unexpected, that is more than expected in terms of what your your normal day to day operating budget looks like. That would be what would be considered, in my opinion, a windfall. And so with that in mind, are you creating a spot for a future windfall? You know, do you have a place that, you know, if if a million dollars showed up tomorrow that you could store that, gain interest on it, and access it in almost immediately in terms of to have access to that capital for your environment? So if if that's something you've set up and if that's something you have available, that's great. We just said you can you can bank with anything. but we believe through infinite banking concepts that dividend paying whole life is the best player for that. And you can create pockets that I I would call them pockets or you can create areas within those policies and within those contracts that allows for future windfalls. And it's not just the you know, some wide open space that can't wait to be filled by a possible future windfall. It's the idea that as you set these policies up and as you set these contracts up, you are building your own banking system. It's be called it's called becoming your own banker for a reason. It's not becoming Jared's banker or becoming John's banker, it's becoming your own banker. And so We are honored to be a part of that process and to be a part of the education along the way so that you learn what you've built and what you've created. And through that, through exercising the use of those policies and contracts, you will automatically create areas and pockets for future windfalls. So I think that's worthy of probably a whole other pod and a whole other cot topic that that we could take a deeper dive on this. But that showed up recently in a conversation and again I just wanted to share that. We are we are committed to continuing and we're gonna keep launching these podcasts on a more regular basis. As always, you can send any content feedback that you'd either have a rebuttal on, maybe you heard something today or in the past that you're like, John. Jared, this is this is just dumb. This can't be that way. Let's let's let's talk about that. We welcome that. we welcome the questions. You know, someone that's willing to take the deeper dive and ask the hard questions or folks that that we want to get to know better because they're they're constant students and they're always learning. So don't hesitate to reach out. You've got a couple of different ways that you can reach out to us. There are a couple of different ways you can reach out to us. You can find either of us listed at flightpathfinancial.com. you can find our our calendarly link there where you could schedule time with us. You could also reach out via email to Jared at green.wealth dot com or John at flightpathfinancial.com. Either great ways to get in touch with us. We'd love to have a conversation with you and and even maybe hear of what your feedback is on on some of the episodes. Thanks for stopping in. Have a great week.