John T. Urbik: Hello, ladies and gentlemen. John and Jared are back with you on our latest podcast, and we've got a lot to talk about in just a little bit of time, so we're going to try to make it concise today. But one of the things that Jared and I spend a lot of time talking to people about is not about spending money, but spending capital and what the difference between those two things are. You know, right, Jared? I mean
Jared Adams: Yes. Yes.
John T. Urbik: Well, wealthy people don't think about spending money, they think about spending capital. And the difference is maybe something we might talk about. Where spending money is I've got these dollars in my hand and I'm gonna spend it, and that money's gone. They're not thinking about the after. We're wealthy people thinking, all right, if I spend this dollar, where's that dollar going? So and that is a crucial distinction to understand because when we spend those dollars, if we're not thinking about downstream. Not only just a week, 10 days, a year, five years, 30 years down the road, we're missing out on thousands and thousands of dollars. And that is the crux of the infinite banking concept. And so crucial to understand that one point. If you understand nothing else, understand that what is happening to my dollar when I spend it. And every purchasing decision you make ought to be rooted in that thought process. What are
Jared Adams: Yep.
John T. Urbik: your thoughts on that, Jared?
Jared Adams: I mean it I think it's spot on when you talk about every single transaction that carries some cost, you know, is it is it a financing cost you're paying some other bank or is it the opportunity cost you've lost? You know, we've we've talked about that before, but every single transaction has a financing cost. So when you think about it from that respect, who captures that cost? Is it you or is it someone else? And when you when you think about it from that perspective, it it just changes the way you you vake the way you view the entire financial system.
John T. Urbik: One hundred percent. And you know, we've talked about it before, but the idea that every dollar is an employee.
Jared Adams: Yes.
John T. Urbik: What does that mean? What does that mean to you?
Jared Adams: That means that that if I think about my landscape, my financial landscape, and I'm the owner, that I need to put all of those dollars to work. I
John T. Urbik: Right.
Jared Adams: need to ensure they're doing a job and that they're doing so according to, you know, the rules, regulations, and plans that have been put in place by the corporation that is my family bank, and that I need to go put to work. That's what that's
John T. Urbik: Yeah.
Jared Adams: what I think of when you say that.
John T. Urbik: Well think think about the best if you have a company, your best employee does an outstanding job, he or her does does an outstanding job for you, and as soon as they're done with that task, you fire Is that something we would do normally? But that's precisely what we're doing with our money. We're taking our most valuable dollars, which are today's dollars because of in inflation is is is deflating the value, the purchasing power of each dollar we have. So we're taking our most r our richest dollars spending them without any c consideration for what that means down the road. So every dollar is an employee. How would you treat that differently?
Jared Adams: I mean, I I had a an actual instance where you can put some dollars to cents on this recently. you know, speaking with someone about this on a real life scenario, someone was considering a a real estate purchase
John T. Urbik: Yes.
Jared Adams: that was gonna require approximately twenty percent down. That twenty percent down equated to about a hundred thousand dollars. Okay, so we're talking a half
John T. Urbik: Yeah.
Jared Adams: a million dollar property, right? And so in order to get that twenty percent down, they're gonna finance the other 80. But that first 20% down payment, how did they pay for that? Well, and this was a discussion that that it even took me a little time to wrap my head around, which was where did that come from? Because they had had investments and other, you know, things that had grown within the market that they could have just cashed those out and paid for the down payment. But
John T. Urbik: Right.
Jared Adams: they also had a policy loan available. And so When when we actually sat down and talked about it and got into the weeds a little bit, it was why would you interrupt what's growing in the market? Like great job building a hundred thousand dollars in the market. Why would you interrupt that when you could take the policy loan and keep everything working?
John T. Urbik: Exactly right.
Jared Adams: Right? And and you don't have access to that policy loan if you're not truly building You know, you can call it cash value life insurance, you can call it properly structured dividend paying whole life, however you work into that. We won't talk about IULs. I don't think that's a good idea to talk about that. But you get
John T. Urbik: Okay.
Jared Adams: the idea here, right? Unless you've built that warehouse of wealth, that's not even an option on your table. So
John T. Urbik: Right.
Jared Adams: when we just walking through that simple scenario of an actual dollars to cents, you're not firing that employee that you talked about. You know, making a hundred grand in the market, wherever that was, great job. Let it keep working. And if you for whatever reason needed to fire that employee and pay off that hundred thousand dollar policy loan, it's still there doing whatever it was doing before in the market. But you've got this hundred
John T. Urbik: Percent.
Jared Adams: thousand dollar policy loan that allowed you to make this purchase and kept everything working.
John T. Urbik: Great point. And the the follow-on to that is another consideration is what if the market goes down in a given week or month or year? Now you're selling something when you had an opportunity, you know that thing that thing, you buy Apple stock, whatever the whatever the company is, they're not going out of business. It will return at some point. So why interrupt that just as you said? Just as you said. Too many people, when they look at this business, Like, it's insurance. I don't want insurance. This is not about insurance. It's very helpful in that regard. It does play a role, and I've certainly sold a lot of insurance for the sake of the insurance. But
Jared Adams: That's right.
John T. Urbik: this is a policy we're using a policy as a strategy tool for preserving the capital while maintaining compounding interest over time. You
Jared Adams: That's right.
John T. Urbik: know, the old the annuity guys used to say zero is your hero. Well, what does that mean? Well, all right, what if in a given year you make nothing on your money? Well, the good thing is you haven't lost any money. And we can all look back on the markets or a house or a car purchase, a depreciating asset typically, and it goes down. And now you're starting from a baseline much lower than where you are today. Whereas in life insurance, when you're building a it a truly IBC constructed contract. You're starting the next year at least where you finished off the year before. Beautiful thing. And
Jared Adams: Yep. Yep.
John T. Urbik: you've had access to that money over time. Try doing that with any other investment. You can go do a HELOC, we've talked about that. All the different you can borrow
Jared Adams: That's right.
John T. Urbik: from your 401k, very, very expensive. You can go get a HELOC and and you borrow a dollar and they have leverage on your entire house. Nothing you
Jared Adams: That's right.
John T. Urbik: can't even sell your house until you clear that HELOC. So
Jared Adams: Yep.
John T. Urbik: it it's so important to look at what the point of Of why we're doing this, not that we're doing it.
Jared Adams: And I the one that I heard recently that I really liked was, you know, when we just talk about the description of the book, it says Becoming
John T. Urbik: Right.
Jared Adams: Your Own Banker, right? That's the name of the book. It's the Bible for what
John T. Urbik: Exactly.
Jared Adams: we do for IBC. And yet when you think of bank, you think of bank accounts. You think
John T. Urbik: Right.
Jared Adams: of, you know, some long nine-digit number that ends with, you know, four digits that you always remember, right? You
John T. Urbik: Right.
Jared Adams: think of an account. And yet you're not. This is not an account. This is a contract. And when I heard that recently, that
John T. Urbik: Exactly right.
Jared Adams: one made so much sense to me. You know, you're not you're not making quote unquote deposits into an account. You're you're signing on for an agreement into a contract that allows you to put capital in one spot that is safe literally for the rest of your life. Because it's as we said, a whole life policy. You know, w Just that reframing, that that small little twist in those words made so much sense to me.
John T. Urbik: You you read every disclaimer on the bottom of an investment account or you hire a professional money manager, everything enters. Future returns are not guaranteed. Not guaranteed. You you you can or you may or can, whatever the tr wording is, lose money. That's not the case here. You're not gonna lose money. You're just not.
Jared Adams: Yeah. Yep.
John T. Urbik: It unless you unless you forfeit the contr contract or or you l lapse contract, there is no issue with taxability, and that's growing tax-free. So This is a this is a tool that wealthy families use, but there's no reason in the world why people who don't have a lot of means can't begin to build on the same platform. I mean, your great your your ancestors, my ancestors, many of them came here with nothing. Yet here we are today living lives that exceed those of kings of just a few hundred years ago. So How does that happen? That happens with compounding interest. That happens with controlling the capital. It happens with having a a vision which is beyond today and scrambling and too much of society is is you know instant gratification. This is something you need to be a little bit more circumspect about and you s sit back and say, Okay, here I am now. I'm gonna spend this dollar. What does that do to that dollar thirty years down the road?
Jared Adams: Yep. That's right.
John T. Urbik: Is gone if you just go buy something, right? So wealthy family families, and you've I know you've done a couple podcasts on this, but think generationally. It's so important. They they have money not because they don't spend it, but because they control the economic environment, the ecosystem of that money that they control. That's what infinite banking does for you and your family. Don't think about rates of return. Think about control of capital and all the money you're not paying in interest to somebody else. And it's insidious, it's it's below the surface oftentimes, and people aren't looking at it. And it's certainly not advertised because they don't want you to know this. But you and
Jared Adams: That's right.
John T. Urbik: I know very, very well the cost of those systems what we are not controlling.
Jared Adams: Well, and and I don't I don't mean to pick you apart here, but I wanna I wanna rebuttal right what someone might say when they hear that. Don't think about rates of return. How could I not think about rates of return? Okay, I agree with you. Yes, you should consider rates of return. However,
John T. Urbik: Sure.
Jared Adams: when you're considering rates of return, if you make six, eight, ten percent on your investments, what does that matter if you're losing thirty-four and a half percent of every dollar out the front door to a financing cost? You can make six, eight, ten. Fifteen percent. You still haven't recouped what you've lost in the finance cost. So we're not saying disregard rate of returns. We're not saying never think about it. We're saying until you recapture that first thirty-four and a half percent, that other six, eight, fifteen percent doesn't matter. Right. So
John T. Urbik: Doesn't matter. Yeah.
Jared Adams: I I know you I know you meant that when you're when you're talking about that, but I just I I think that's an important point to add when you say, you know, don't ever consider rates of return. Well, we're saying don't consider it first.
John T. Urbik: Yeah, I mean it but but this this system is not about rates of return. It's about capturing the interest that you're paying to somebody else. People think, I can do eight percent. You know, there's people there are big names out there talking about, you know, buy term invest the difference, you're gonna get eight percent forever on your money. Nonsense. Because they don't talk about they talk about their four percent rule, which doesn't hold up to sequence of returns, which is another discussion we
Jared Adams: That's right.
John T. Urbik: could have.
Jared Adams: That's right.
John T. Urbik: It doesn't hold up to a a market downturn when you need capital in the short term. It doesn't hold up to taxation. It doesn't hold up to money management fees which are embedded into all of this stuff. The further
Jared Adams: That's right.
John T. Urbik: you are from your money, the more people you are paying, whether you like it or not. It just doesn't show up as a number on on the bottom line. It's all embedded on that rate of return. So
Jared Adams: But
John T. Urbik: if you're gonna get an eight percent rate of return in a given year in the market, especially if it's in a qualified plant, for instance, you gotta pay taxes on that when it comes out. You've got internal management fees, which one one and a half percent on y you put Yeah you know, what pick pick a number, whatever you put away per per year, you're gonna reduce that by thirty, forty percent over thirty years. People don't realize that. But if you control
Jared Adams: Yep. That's right. That's exactly right.
John T. Urbik: that capital and you can reduce the interest expense on the on the monies you're you're outlaying now, now you're not thinking about it as a transaction. You're thinking in generational wealth. I'm gonna
Jared Adams: That's right.
John T. Urbik: control this this money. Huge difference. Huge difference. So
Jared Adams: That's exactly right. Big difference. Yep. Totally agree. And you know, one other you know, point you mentioned that that it is an insurance contract, right? There is a death benefit that will be received at some day. You know, sometimes
John T. Urbik: Absolutely.
Jared Adams: I hear from folks they say, I don't need that. I don't I don't want to be worth more alive than I am dead, or I don't want to be worth more dead than I am alive. You know, and I go,
John T. Urbik: That's an emotional argument though.
Jared Adams: What's that?
John T. Urbik: That's an emotional argument. That's not math. You can show the the
Jared Adams: Well
John T. Urbik: math behind it.
Jared Adams: and exactly. And I would there's two points I would argue on that. One I would say, first, the insurance company is not going to cover you for more than you're worth. You know, you may
John T. Urbik: Right.
Jared Adams: see a number on a paper and go, Well, you know, I only paid, you know, a hundred grand over the course of five years for that policy. They're gonna pay me out a million dollars. That's worth more than I'm worth. Well, they're including what you would have made in a lifetime economic value when they look ten, twenty, thirty years down the road. So they're never gonna insure you for more than you're worth. So we can
John T. Urbik: Right.
Jared Adams: start there with that one. Point two would be you know, some folks say, Well, I have no need for that death benefit. I wouldn't, I have no one I want to pass it on to. You don't you don't get excited about anything? You don't get excited about your local church, about a local foundation, about a local nonprofit. You don't get excited about anything. Like,
John T. Urbik: Right.
Jared Adams: okay, well then maybe IBC is not for you. But if you get excited about anything, why would it not be so cool for them to name a building after you because you wrote them a check for a three million dollars in thirty years. I I guess I just I I can't view that as anything other than than myopic, right? If if you ha everybody's excited about something. I I know I yeah I always get excited about a variety of opportunities. So that I guess that's two points on on on something on that topic.
John T. Urbik: Well, y people buy things, people invest, people allocate their resources according to their desires and needs, right? And
Jared Adams: Yeah. Yep.
John T. Urbik: when they understand that this is not about life insurance, it ha life insurance definitely has its place. And for the person who says, I don't need life insurance, I don't want life insurance, okay fine, I've got nobody to leave it to. Well, would you like to have more money while you're living? Would you like to have
Jared Adams: Yeah.
John T. Urbik: more access to capital? Would you like to be able to make choices that you would not otherwise be able to make in 10 years just because you did this? And
Jared Adams: That's right.
John T. Urbik: usually it's an overwhelming yes. I had I had a guy that I flew with not long ago, and we were talking about this was a little bit different subject, but it was about long-term care. And he had millions of dollars in his investments, and he showed them to me and and he says, look, I'm gonna just self-finance all this. I said, okay, you're gonna self-finance it. Great, you got the money to do it because right now, nationally, seventy thousand dollars a year for long term care. and well, let's see, what if you get Alzheimer's? That can knock on the door of two hundred thousand dollars a year, a lot of money. This guy could afford it. Okay, well, let me ask you this. I'll just call him Jim. That wasn't his name, but I'll just say, Hey, so Jim, you've got the money to do it, great. How do you feel about paying an extra forty grand for that same service? He goes, What do you mean? I said, Well, that's the tax consequence of doing it your way. If it was inside of a structured product that I'm telling you about, that's tax-free money. It comes out tax-free. In this case,
Jared Adams: That's right. That's right.
John T. Urbik: it was a long-term care policy that was not a traditional, it was an asset care plan. But
Jared Adams: That's right.
John T. Urbik: he's like, okay. So people don't know what they don't know. And our job is out to advocate for these better solutions. Our job is out there to advocate for the individual and put ourselves in their shoes. And every person is different. I get clients who say, bring me an illustration. No, I'm not going to bring you an illustration because there's 10,000 different options there that could be. I need to know who you are, what you want, where you want to go, what your assets are, what your liabilities are. We need to
Jared Adams: That's right. Yep.
John T. Urbik: do a deep dive into you so I can get a better feel of helping you rather than just giving you a boom. I can. Go online and this is the cheapest product, this is what I want. Boom, print, zoom, let's go. No, that's not
Jared Adams: Yep. Yep.
John T. Urbik: that's not what we do. So
Jared Adams: Or who was it that said that you know, it it's not what you know, it's what you think is so and just or think is true and just ain't so? Mark Twain, is that what it was? No.
John T. Urbik: Mark Twain. Mark Twain said it. Yes, he he had a he had a lot of a lot of good ones. He's also the same one who said I I believe that if you want to make a million dollars start start out with two or something greater than a million. I I forgot
Jared Adams: Ha ha.
John T. Urbik: what it was. But it's it's a mindset, this whole s this whole process, and it is a process. And you've talked about this, I've heard you on on your own feeds out there. i it's so true, it's a mindset. It's not a transaction. It's not a thing. It is a process of how we cash flow our money. The mindset.
Jared Adams: I mean Nelson would tell you it's an exercise in imagination of one of the things that it is. It's an exercise in imagination of of which the opportunities or ideas are truly infinite.
John T. Urbik: You know, it's it's the mindset can't be overstated of how important that is.
Jared Adams: Yep. Sure.
John T. Urbik: And we live in a fast-paced world, we're in a very dynamic financial situation. Markets here, markets there, this is up, this is down. We've got inflation for money printing. We're wondering about jobs, we're running running wondering about family members who are going through difficult times. We live in a really crazy time. And It's nice just to be able to step back from all of that, from all the insanity that's out there, and say, you know what? I have peace right here. This isn't going to be a rocket shot to the moon. This is going to be a nice financial foundation, a part of a good financial plan that's going
Jared Adams: That's right.
John T. Urbik: to place me in a position of strength and of control when things aren't going my way. And I can speak from personal experience that I have used this. For those very things in my life, and thank goodness I had it. And
Jared Adams: That's right. That's right.
John T. Urbik: so that's probably another reason I'm so passionate about it, because I know it works. I've I've lived it. And so for those that might be interested in learning more about this, Jared, you can contact Jared. Jared, give him your your contact information.
Jared Adams: Jared at green dot wealth.com. We'll flash that along the bottom of the of the page here that's in the video.
John T. Urbik: Or you can contact me, John Urbick, at flightpathfinancial.com. I'm at John at Flightpathfinancial.com. Also, Jared and I both have Kendally links that I think you can put at the bottom, Jared, of the of the thing. So
Jared Adams: Yep. That's it.
John T. Urbik: it closing challenge. And I'll let you get the final word here, Jared, but the closing challenge I would say for people who are listening to this, don't ask yourself whether you can afford something. Ask yourself a different question. Is there a way to buy this without permanently having that money leave your hands forever? Think about that. 'Cause there
Jared Adams: Love that.
John T. Urbik: 'cause there is.
Jared Adams: I love that. No, I I would close in saying that the idea of of hiring an employee and then firing them just when they get up and s up and running and they're the your most efficient employee, that visual to me resonates so well. I I love that. So thanks for thanks for bringing that in and and and applying that.
John T. Urbik: Well, h happy to, Jared. It's always great to get together with you. Thanks for putting us together. And
Jared Adams: Yes, sir.
John T. Urbik: we'll look forward to the next one. All right, my friend? you too, Jared. Thank you. Bye
Jared Adams: Thanks. Thanks, John. Have a great day. We'll talk soon. Thanks.
John T. Urbik: everyone.
Jared Adams: Yes. Yes.
John T. Urbik: Well, wealthy people don't think about spending money, they think about spending capital. And the difference is maybe something we might talk about. Where spending money is I've got these dollars in my hand and I'm gonna spend it, and that money's gone. They're not thinking about the after. We're wealthy people thinking, all right, if I spend this dollar, where's that dollar going? So and that is a crucial distinction to understand because when we spend those dollars, if we're not thinking about downstream. Not only just a week, 10 days, a year, five years, 30 years down the road, we're missing out on thousands and thousands of dollars. And that is the crux of the infinite banking concept. And so crucial to understand that one point. If you understand nothing else, understand that what is happening to my dollar when I spend it. And every purchasing decision you make ought to be rooted in that thought process. What are
Jared Adams: Yep.
John T. Urbik: your thoughts on that, Jared?
Jared Adams: I mean it I think it's spot on when you talk about every single transaction that carries some cost, you know, is it is it a financing cost you're paying some other bank or is it the opportunity cost you've lost? You know, we've we've talked about that before, but every single transaction has a financing cost. So when you think about it from that respect, who captures that cost? Is it you or is it someone else? And when you when you think about it from that perspective, it it just changes the way you you vake the way you view the entire financial system.
John T. Urbik: One hundred percent. And you know, we've talked about it before, but the idea that every dollar is an employee.
Jared Adams: Yes.
John T. Urbik: What does that mean? What does that mean to you?
Jared Adams: That means that that if I think about my landscape, my financial landscape, and I'm the owner, that I need to put all of those dollars to work. I
John T. Urbik: Right.
Jared Adams: need to ensure they're doing a job and that they're doing so according to, you know, the rules, regulations, and plans that have been put in place by the corporation that is my family bank, and that I need to go put to work. That's what that's
John T. Urbik: Yeah.
Jared Adams: what I think of when you say that.
John T. Urbik: Well think think about the best if you have a company, your best employee does an outstanding job, he or her does does an outstanding job for you, and as soon as they're done with that task, you fire Is that something we would do normally? But that's precisely what we're doing with our money. We're taking our most valuable dollars, which are today's dollars because of in inflation is is is deflating the value, the purchasing power of each dollar we have. So we're taking our most r our richest dollars spending them without any c consideration for what that means down the road. So every dollar is an employee. How would you treat that differently?
Jared Adams: I mean, I I had a an actual instance where you can put some dollars to cents on this recently. you know, speaking with someone about this on a real life scenario, someone was considering a a real estate purchase
John T. Urbik: Yes.
Jared Adams: that was gonna require approximately twenty percent down. That twenty percent down equated to about a hundred thousand dollars. Okay, so we're talking a half
John T. Urbik: Yeah.
Jared Adams: a million dollar property, right? And so in order to get that twenty percent down, they're gonna finance the other 80. But that first 20% down payment, how did they pay for that? Well, and this was a discussion that that it even took me a little time to wrap my head around, which was where did that come from? Because they had had investments and other, you know, things that had grown within the market that they could have just cashed those out and paid for the down payment. But
John T. Urbik: Right.
Jared Adams: they also had a policy loan available. And so When when we actually sat down and talked about it and got into the weeds a little bit, it was why would you interrupt what's growing in the market? Like great job building a hundred thousand dollars in the market. Why would you interrupt that when you could take the policy loan and keep everything working?
John T. Urbik: Exactly right.
Jared Adams: Right? And and you don't have access to that policy loan if you're not truly building You know, you can call it cash value life insurance, you can call it properly structured dividend paying whole life, however you work into that. We won't talk about IULs. I don't think that's a good idea to talk about that. But you get
John T. Urbik: Okay.
Jared Adams: the idea here, right? Unless you've built that warehouse of wealth, that's not even an option on your table. So
John T. Urbik: Right.
Jared Adams: when we just walking through that simple scenario of an actual dollars to cents, you're not firing that employee that you talked about. You know, making a hundred grand in the market, wherever that was, great job. Let it keep working. And if you for whatever reason needed to fire that employee and pay off that hundred thousand dollar policy loan, it's still there doing whatever it was doing before in the market. But you've got this hundred
John T. Urbik: Percent.
Jared Adams: thousand dollar policy loan that allowed you to make this purchase and kept everything working.
John T. Urbik: Great point. And the the follow-on to that is another consideration is what if the market goes down in a given week or month or year? Now you're selling something when you had an opportunity, you know that thing that thing, you buy Apple stock, whatever the whatever the company is, they're not going out of business. It will return at some point. So why interrupt that just as you said? Just as you said. Too many people, when they look at this business, Like, it's insurance. I don't want insurance. This is not about insurance. It's very helpful in that regard. It does play a role, and I've certainly sold a lot of insurance for the sake of the insurance. But
Jared Adams: That's right.
John T. Urbik: this is a policy we're using a policy as a strategy tool for preserving the capital while maintaining compounding interest over time. You
Jared Adams: That's right.
John T. Urbik: know, the old the annuity guys used to say zero is your hero. Well, what does that mean? Well, all right, what if in a given year you make nothing on your money? Well, the good thing is you haven't lost any money. And we can all look back on the markets or a house or a car purchase, a depreciating asset typically, and it goes down. And now you're starting from a baseline much lower than where you are today. Whereas in life insurance, when you're building a it a truly IBC constructed contract. You're starting the next year at least where you finished off the year before. Beautiful thing. And
Jared Adams: Yep. Yep.
John T. Urbik: you've had access to that money over time. Try doing that with any other investment. You can go do a HELOC, we've talked about that. All the different you can borrow
Jared Adams: That's right.
John T. Urbik: from your 401k, very, very expensive. You can go get a HELOC and and you borrow a dollar and they have leverage on your entire house. Nothing you
Jared Adams: That's right.
John T. Urbik: can't even sell your house until you clear that HELOC. So
Jared Adams: Yep.
John T. Urbik: it it's so important to look at what the point of Of why we're doing this, not that we're doing it.
Jared Adams: And I the one that I heard recently that I really liked was, you know, when we just talk about the description of the book, it says Becoming
John T. Urbik: Right.
Jared Adams: Your Own Banker, right? That's the name of the book. It's the Bible for what
John T. Urbik: Exactly.
Jared Adams: we do for IBC. And yet when you think of bank, you think of bank accounts. You think
John T. Urbik: Right.
Jared Adams: of, you know, some long nine-digit number that ends with, you know, four digits that you always remember, right? You
John T. Urbik: Right.
Jared Adams: think of an account. And yet you're not. This is not an account. This is a contract. And when I heard that recently, that
John T. Urbik: Exactly right.
Jared Adams: one made so much sense to me. You know, you're not you're not making quote unquote deposits into an account. You're you're signing on for an agreement into a contract that allows you to put capital in one spot that is safe literally for the rest of your life. Because it's as we said, a whole life policy. You know, w Just that reframing, that that small little twist in those words made so much sense to me.
John T. Urbik: You you read every disclaimer on the bottom of an investment account or you hire a professional money manager, everything enters. Future returns are not guaranteed. Not guaranteed. You you you can or you may or can, whatever the tr wording is, lose money. That's not the case here. You're not gonna lose money. You're just not.
Jared Adams: Yeah. Yep.
John T. Urbik: It unless you unless you forfeit the contr contract or or you l lapse contract, there is no issue with taxability, and that's growing tax-free. So This is a this is a tool that wealthy families use, but there's no reason in the world why people who don't have a lot of means can't begin to build on the same platform. I mean, your great your your ancestors, my ancestors, many of them came here with nothing. Yet here we are today living lives that exceed those of kings of just a few hundred years ago. So How does that happen? That happens with compounding interest. That happens with controlling the capital. It happens with having a a vision which is beyond today and scrambling and too much of society is is you know instant gratification. This is something you need to be a little bit more circumspect about and you s sit back and say, Okay, here I am now. I'm gonna spend this dollar. What does that do to that dollar thirty years down the road?
Jared Adams: Yep. That's right.
John T. Urbik: Is gone if you just go buy something, right? So wealthy family families, and you've I know you've done a couple podcasts on this, but think generationally. It's so important. They they have money not because they don't spend it, but because they control the economic environment, the ecosystem of that money that they control. That's what infinite banking does for you and your family. Don't think about rates of return. Think about control of capital and all the money you're not paying in interest to somebody else. And it's insidious, it's it's below the surface oftentimes, and people aren't looking at it. And it's certainly not advertised because they don't want you to know this. But you and
Jared Adams: That's right.
John T. Urbik: I know very, very well the cost of those systems what we are not controlling.
Jared Adams: Well, and and I don't I don't mean to pick you apart here, but I wanna I wanna rebuttal right what someone might say when they hear that. Don't think about rates of return. How could I not think about rates of return? Okay, I agree with you. Yes, you should consider rates of return. However,
John T. Urbik: Sure.
Jared Adams: when you're considering rates of return, if you make six, eight, ten percent on your investments, what does that matter if you're losing thirty-four and a half percent of every dollar out the front door to a financing cost? You can make six, eight, ten. Fifteen percent. You still haven't recouped what you've lost in the finance cost. So we're not saying disregard rate of returns. We're not saying never think about it. We're saying until you recapture that first thirty-four and a half percent, that other six, eight, fifteen percent doesn't matter. Right. So
John T. Urbik: Doesn't matter. Yeah.
Jared Adams: I I know you I know you meant that when you're when you're talking about that, but I just I I think that's an important point to add when you say, you know, don't ever consider rates of return. Well, we're saying don't consider it first.
John T. Urbik: Yeah, I mean it but but this this system is not about rates of return. It's about capturing the interest that you're paying to somebody else. People think, I can do eight percent. You know, there's people there are big names out there talking about, you know, buy term invest the difference, you're gonna get eight percent forever on your money. Nonsense. Because they don't talk about they talk about their four percent rule, which doesn't hold up to sequence of returns, which is another discussion we
Jared Adams: That's right.
John T. Urbik: could have.
Jared Adams: That's right.
John T. Urbik: It doesn't hold up to a a market downturn when you need capital in the short term. It doesn't hold up to taxation. It doesn't hold up to money management fees which are embedded into all of this stuff. The further
Jared Adams: That's right.
John T. Urbik: you are from your money, the more people you are paying, whether you like it or not. It just doesn't show up as a number on on the bottom line. It's all embedded on that rate of return. So
Jared Adams: But
John T. Urbik: if you're gonna get an eight percent rate of return in a given year in the market, especially if it's in a qualified plant, for instance, you gotta pay taxes on that when it comes out. You've got internal management fees, which one one and a half percent on y you put Yeah you know, what pick pick a number, whatever you put away per per year, you're gonna reduce that by thirty, forty percent over thirty years. People don't realize that. But if you control
Jared Adams: Yep. That's right. That's exactly right.
John T. Urbik: that capital and you can reduce the interest expense on the on the monies you're you're outlaying now, now you're not thinking about it as a transaction. You're thinking in generational wealth. I'm gonna
Jared Adams: That's right.
John T. Urbik: control this this money. Huge difference. Huge difference. So
Jared Adams: That's exactly right. Big difference. Yep. Totally agree. And you know, one other you know, point you mentioned that that it is an insurance contract, right? There is a death benefit that will be received at some day. You know, sometimes
John T. Urbik: Absolutely.
Jared Adams: I hear from folks they say, I don't need that. I don't I don't want to be worth more alive than I am dead, or I don't want to be worth more dead than I am alive. You know, and I go,
John T. Urbik: That's an emotional argument though.
Jared Adams: What's that?
John T. Urbik: That's an emotional argument. That's not math. You can show the the
Jared Adams: Well
John T. Urbik: math behind it.
Jared Adams: and exactly. And I would there's two points I would argue on that. One I would say, first, the insurance company is not going to cover you for more than you're worth. You know, you may
John T. Urbik: Right.
Jared Adams: see a number on a paper and go, Well, you know, I only paid, you know, a hundred grand over the course of five years for that policy. They're gonna pay me out a million dollars. That's worth more than I'm worth. Well, they're including what you would have made in a lifetime economic value when they look ten, twenty, thirty years down the road. So they're never gonna insure you for more than you're worth. So we can
John T. Urbik: Right.
Jared Adams: start there with that one. Point two would be you know, some folks say, Well, I have no need for that death benefit. I wouldn't, I have no one I want to pass it on to. You don't you don't get excited about anything? You don't get excited about your local church, about a local foundation, about a local nonprofit. You don't get excited about anything. Like,
John T. Urbik: Right.
Jared Adams: okay, well then maybe IBC is not for you. But if you get excited about anything, why would it not be so cool for them to name a building after you because you wrote them a check for a three million dollars in thirty years. I I guess I just I I can't view that as anything other than than myopic, right? If if you ha everybody's excited about something. I I know I yeah I always get excited about a variety of opportunities. So that I guess that's two points on on on something on that topic.
John T. Urbik: Well, y people buy things, people invest, people allocate their resources according to their desires and needs, right? And
Jared Adams: Yeah. Yep.
John T. Urbik: when they understand that this is not about life insurance, it ha life insurance definitely has its place. And for the person who says, I don't need life insurance, I don't want life insurance, okay fine, I've got nobody to leave it to. Well, would you like to have more money while you're living? Would you like to have
Jared Adams: Yeah.
John T. Urbik: more access to capital? Would you like to be able to make choices that you would not otherwise be able to make in 10 years just because you did this? And
Jared Adams: That's right.
John T. Urbik: usually it's an overwhelming yes. I had I had a guy that I flew with not long ago, and we were talking about this was a little bit different subject, but it was about long-term care. And he had millions of dollars in his investments, and he showed them to me and and he says, look, I'm gonna just self-finance all this. I said, okay, you're gonna self-finance it. Great, you got the money to do it because right now, nationally, seventy thousand dollars a year for long term care. and well, let's see, what if you get Alzheimer's? That can knock on the door of two hundred thousand dollars a year, a lot of money. This guy could afford it. Okay, well, let me ask you this. I'll just call him Jim. That wasn't his name, but I'll just say, Hey, so Jim, you've got the money to do it, great. How do you feel about paying an extra forty grand for that same service? He goes, What do you mean? I said, Well, that's the tax consequence of doing it your way. If it was inside of a structured product that I'm telling you about, that's tax-free money. It comes out tax-free. In this case,
Jared Adams: That's right. That's right.
John T. Urbik: it was a long-term care policy that was not a traditional, it was an asset care plan. But
Jared Adams: That's right.
John T. Urbik: he's like, okay. So people don't know what they don't know. And our job is out to advocate for these better solutions. Our job is out there to advocate for the individual and put ourselves in their shoes. And every person is different. I get clients who say, bring me an illustration. No, I'm not going to bring you an illustration because there's 10,000 different options there that could be. I need to know who you are, what you want, where you want to go, what your assets are, what your liabilities are. We need to
Jared Adams: That's right. Yep.
John T. Urbik: do a deep dive into you so I can get a better feel of helping you rather than just giving you a boom. I can. Go online and this is the cheapest product, this is what I want. Boom, print, zoom, let's go. No, that's not
Jared Adams: Yep. Yep.
John T. Urbik: that's not what we do. So
Jared Adams: Or who was it that said that you know, it it's not what you know, it's what you think is so and just or think is true and just ain't so? Mark Twain, is that what it was? No.
John T. Urbik: Mark Twain. Mark Twain said it. Yes, he he had a he had a lot of a lot of good ones. He's also the same one who said I I believe that if you want to make a million dollars start start out with two or something greater than a million. I I forgot
Jared Adams: Ha ha.
John T. Urbik: what it was. But it's it's a mindset, this whole s this whole process, and it is a process. And you've talked about this, I've heard you on on your own feeds out there. i it's so true, it's a mindset. It's not a transaction. It's not a thing. It is a process of how we cash flow our money. The mindset.
Jared Adams: I mean Nelson would tell you it's an exercise in imagination of one of the things that it is. It's an exercise in imagination of of which the opportunities or ideas are truly infinite.
John T. Urbik: You know, it's it's the mindset can't be overstated of how important that is.
Jared Adams: Yep. Sure.
John T. Urbik: And we live in a fast-paced world, we're in a very dynamic financial situation. Markets here, markets there, this is up, this is down. We've got inflation for money printing. We're wondering about jobs, we're running running wondering about family members who are going through difficult times. We live in a really crazy time. And It's nice just to be able to step back from all of that, from all the insanity that's out there, and say, you know what? I have peace right here. This isn't going to be a rocket shot to the moon. This is going to be a nice financial foundation, a part of a good financial plan that's going
Jared Adams: That's right.
John T. Urbik: to place me in a position of strength and of control when things aren't going my way. And I can speak from personal experience that I have used this. For those very things in my life, and thank goodness I had it. And
Jared Adams: That's right. That's right.
John T. Urbik: so that's probably another reason I'm so passionate about it, because I know it works. I've I've lived it. And so for those that might be interested in learning more about this, Jared, you can contact Jared. Jared, give him your your contact information.
Jared Adams: Jared at green dot wealth.com. We'll flash that along the bottom of the of the page here that's in the video.
John T. Urbik: Or you can contact me, John Urbick, at flightpathfinancial.com. I'm at John at Flightpathfinancial.com. Also, Jared and I both have Kendally links that I think you can put at the bottom, Jared, of the of the thing. So
Jared Adams: Yep. That's it.
John T. Urbik: it closing challenge. And I'll let you get the final word here, Jared, but the closing challenge I would say for people who are listening to this, don't ask yourself whether you can afford something. Ask yourself a different question. Is there a way to buy this without permanently having that money leave your hands forever? Think about that. 'Cause there
Jared Adams: Love that.
John T. Urbik: 'cause there is.
Jared Adams: I love that. No, I I would close in saying that the idea of of hiring an employee and then firing them just when they get up and s up and running and they're the your most efficient employee, that visual to me resonates so well. I I love that. So thanks for thanks for bringing that in and and and applying that.
John T. Urbik: Well, h happy to, Jared. It's always great to get together with you. Thanks for putting us together. And
Jared Adams: Yes, sir.
John T. Urbik: we'll look forward to the next one. All right, my friend? you too, Jared. Thank you. Bye
Jared Adams: Thanks. Thanks, John. Have a great day. We'll talk soon. Thanks.
John T. Urbik: everyone.
