Life Success & Legacy Triagle

In part three of this ultra packed chapter, Mike and Chris dive into the way insurance actuaries “overbuild” policies. They also discuss dividends. What are they? How do they work? And are they helpful when considering Infinite Banking?



Life Success & Legacy Triagle

Today’s #tbt repost is the first of the four pillars of Infinite Banking. In the last #tbt we posted the short introduction to all four pillars, here, we dive in and get a more detailed look at exactly HOW Infinite Banking can help US take control of our finances. Learning to overcome the wind-current we face, is huge. If this is your first listen of this podcast, enjoy, if it’s your second, third, or more… we understand why you keep coming back!



Chris Bay:

Welcome to the Life Success & Legacy Podcast. My name is Chris Bay and I’m joined today with the founder of Life Success & Legacy, Mike Everett. Hey Mike. On our last podcast, we talked about the four things that Infinite Banking can do for somebody. The first thing we talked about is how it can eliminate debt rapidly. Which for most of our clients, that happens in about three to eight years in general, for some it’s sooner. For some it’s actually the first month, which sounds crazy. For us, for my family, it took us 26 months. But in general, for most people, it takes somewhere in the range of three to eight years. And we talk about that, being able to do that by turning our headwind into a tailwind. And we’ll talk more about that today. The second thing it does is it teaches us how to finance everything in our life.

The third thing that Infinite Banking can do for folks is it can give us tax-free retirement. And then the last thing, the fourth thing, is tax-free wealth transfer. And that’s passing on our assets to our future generations or other philanthropic organizations that we care about, churches, organizations and such. So on this podcast, what I’d like to do is really dig into that first thing. And that is, how do we eliminate debt rapidly using Infinite Banking? And we talk a lot about shifting the headwind of interest through financing and shifting it to a tailwind. For those listeners, I’m a runner, and at my age, when I’ve got a headwind that I’m facing, when I’m out running on the lobby, instead of feeling about 47 years old, now I feel about 67 years old. But man, when that wind changes and it comes around behind me, all of a sudden I’m feeling 37 again. So that wind makes a huge difference. Can you explain a little bit about shifting that headwind that people are facing and financing to a tailwind?

Mike Everett:

Well, when people come to us, usually their debt load is pretty heavy. Let’s just talk about some of the things that they’re spending their money on. They’ve got mortgages, they’ve got car loans, they’ve got credit card debt, usually multiple credit cards. They’ve also got some student loans and even business owners have business loans, equipment, vehicles, et cetera, et cetera. So, changing the headwind into a tailwind is kind of a big deal, because if you think about all the things that we’re sending money out on, we’ve got all these things that we’re … we get paid on Friday, what do we do? We send our house, our car, our credit card, our student loan payments. How much is left over for us? Not very much. So imagine if there was a way to shift the wind current to where all of a sudden you weren’t making those payments to somebody else, but you were making those payments to yourself. What kind of freedom would that create?

Chris Bay:

Yeah.

Mike Everett:

It’s pretty incredible.

Chris Bay:

Yeah. Nelson Nash, in the book, Becoming Your Own Banker, which we always recommend people get a copy from our website, lifesuccesslegacy.com and read that book. Nelson talks about the wind current in the context of airplanes. Can you talk a little bit about that?

Mike Everett:

Well, if you think about it, you were just talking about it as a runner. A perfect example is, imagine if you had a plane and you were flying into a 345 mile an hour wind.

Chris Bay:

Mm-hmm (affirmative).

Mike Everett:

Your efficiency of your plane wouldn’t be very good. But if all of a sudden you wait for the winds to shift and all of a sudden you’ve got that 345 mile an hour wind behind you, how fast are you going to get there?

Chris Bay:

Pretty fast.

Mike Everett:

Pretty quick. It’s amazing when you get to explain that to a customer when it comes to their finances.

Chris Bay:

And I remember when I was first learning about all this, we didn’t have a huge headwind because we were really a save up and then pay cash for things.

Mike Everett:

Right.

Chris Bay:

So we really didn’t have a wind going at all, either a headwind or a tailwind. But our problem was, let’s say our airplane’s traveling 100 miles an hour, we’re trying to figure out how to make it go 105 miles an hour by, let’s not go out to eat quite as often or let’s cut our cable bill, those kinds of things. That’s pretty hard to get excited about when you’re going from 100 to 105 miles an hour. When reality is, if we can turn that headwind completely into a tailwind, we can really get going.

Mike Everett:

You change the tailwind quickly if you can control the cash flow. But most of the financial industry does not ever explain it that way. You said something about getting the airplane to go 105 miles an hour. That’s just like the financial professional trying to tell you, oh, by the way, we can give you three to 5% more on your investments. When in fact, all you’re doing is, you’re stopping the headwind from 345 miles an hour into 340. You see, it still doesn’t change the wind current that much and so you’re still fighting it

Chris Bay:

Just to clarify for the listeners, you’re using 345 miles an hour of a headwind or a tailwind, where does that come from?

Mike Everett:

That comes from the interest rate that Nelson says the average family is paying towards debt. It’s just house, cars, credit cards, student loans, et cetera. Add them together and you usually have an average of about 34 and a half percent that people are spending on interest alone after they pay their income taxes.

Chris Bay:

When I first read about that, I found that fascinating. So when I think about every dollar that passes through my hand, right off the bat, 20, 25, 28% goes to taxes.

Mike Everett:

Correct.

Chris Bay:

I never even see it. Right?

Mike Everett:

Yep.

Chris Bay:

Then on top of that, let’s add 34 and a half percent that’s going to interest. So you’re adding that up in your head?

Mike Everett:

Yeah.

Chris Bay:

Then let’s say I’m trying to send money to my company, 401k or IRA, which by the way, is not guaranteed to grow and I don’t have control of it. And they’re using it-

Mike Everett:

That’s correct.

Chris Bay:

… while it’s sitting over there. So I am now trying to live on the remaining amount.

Mike Everett:

Which isn’t very much.

Chris Bay:

Whereas, if I can turn the wind current and I can add that 34 and a half percent of interest going my direction, it’s dramatically changing our cashflow.

Mike Everett:

Let’s just pretend that you only have access to not the 34 and a half percent, but let’s say you have access to 10 to 15% of that.

Chris Bay:

Yeah.

Mike Everett:

It’s gigantic.

Chris Bay:

Yeah. Okay. So we talk about how we design plans for people and that we can eliminate debt and build capital at the same time, without changing their cashflow. How is it possible? Explain a little bit about, how is it when we do plans for people that we’re able to eliminate debt rapidly without changing their cashflow, we’re just changing where it’s flowing.

Mike Everett:

Well, part of that comes from having assets or what we call an activator. If you have an activator or an asset that’s sitting there doing nothing for you and we’re able to access that to be able to eliminate a car or a credit card or a student loan debt, then all of a sudden you have the payment that you were making to somebody else, but now you have the availability of making that payment to yourself. So the bottom line is, what we’ve done is, we’ve changed the wind current of those one, two or three items that you were sending money out the door. Now you’re getting the opportunity to send the money in the door.

Chris Bay:

Wow.

Mike Everett:

Changes things pretty dramatically.

Chris Bay:

I was just working on a plan the other day for a client, where we were able to eliminate all of their debt, including their mortgage, in four years and one month, without changing their cashflow and recoup everything tax-free within the fifth year. So not only are they debt free, but they have all the equity in their home and everything else within five years. I mean, when we get to share that with people, it really inspires possibilities for them.

Mike Everett:

A lot of times you’ll get calls like we did just a little bit ago, where people are having trouble sleeping.

Chris Bay:

Yeah.

Mike Everett:

Because they’re looking at these things and they’re going, I can’t believe that you can do this for us, but we do.

Chris Bay:

Yeah. Well, as always, we want to encourage our listeners to go to our website, lifesuccesslegacy.com. If you don’t have a copy of Nelson Nash’s book, Becoming Your Own Banker, we again really encourage you to purchase one of those. Also, we have a free downloadable e-book called Financial Planning Has Failed. And the next podcast that we’re going to tackle is the second element of Infinite Banking. And that is, how do you finance everything in your life? So if you’re debt free, then what do you do? Please join us for our next podcast. Thanks.

Mike Everett:

Thanks Chris.

Life Success & Legacy Triagle

In part two of Creating Your Own Banking System, we continue unpacking this dense chapter and helping you get the most out of all that Nelson is trying to teach us!


Life Success & Legacy Triagle

In this #tbt we are reposting our second podcast titled The Four Pillars of Infinite Banking. We are adding the transcript as well, just as an extra way to dive into the content. Let us know what you think by adding a comment to the page!



Chris Bay:

Welcome to the Life Success & Legacy podcast. My name is Chris Bay, and I’m joined today with the founder of Life Success & Legacy, Mike Everett. Last week, we talked, Mike, about how you were introduced to the Infinite Banking Concept. What I’d like to do is dig a little bit deeper now into what is the Infinite Banking Concept.

Chris Bay:

When we are conducting our Infinite Banking Boot Camps, we talk about the four things that Infinite Banking does. The first of which is that it reduces debt rapidly by turning the wind current. The second thing we do is we teach people how to finance everything in their life and actually earn the interest that they might be losing by taking loans at banks or other financial institutions or the interest they might be losing because they’re paying cash. The third thing that Infinite Banking does is it provides a tax-free retirement. Then the last thing, the fourth thing, is tax-free wealth transfer. So what I’d like to do is have a conversation about each of those a little bit.

Mike Everett:

Sounds good.

Chris Bay:

The first thing of what is IBC, reducing debt rapidly by turning the wind current. People are amazed, and I know you feel this way. When you’re able to show somebody a plan and you show them what’s possible in a very short amount of time really, they get excited, you’re excited, I’m excited, we’re all excited about what’s possible. The power of it is turning the wind current. So can you kind of describe what is the wind current that people are facing, that kind of headwind tailwind thing?

Mike Everett:

Well, when we’re going into detail with people on how to rapidly eliminate outside debt, people don’t even think through all of the payments that they’re making to somebody else, the house payment, the car payment, the credit card payments, the student loan payments. Imagine if you were just putting part or half of those payments into your own system. So what I normally do is I help people just think through about all of the money that’s going out the door. What if some or all of that money was coming back to them in some sort of way? That’s what we call changing the wind current.

Chris Bay:

Okay, so then how does that happen? I mean, if we’re thinking about shifting the wind current and we’re turning those payments from going to somebody else to now, all of a sudden, it’s going to themselves, how do you go about doing that?

Mike Everett:

Well, first of all, you teach them about economic value added, EVA, which is really one of the most powerful things that we teach. What people don’t understand is our money has a cost in some sort of way. So if we’re trying to get people to understand about the costs that they have towards their money, if they were making payments to Visa and MasterCard and Ford Motor Credit and Countrywide Homes for all of the different things that they were paying money towards, what would happen if we taught them how to actually make those payments to themselves? Our question to most people is if you were making all or part of those payments to you, how fast would your money grow?

Chris Bay:

The amazing thing is so once we turn that wind current for a family or for a business, that money they were making payments on was going to somebody else and they never got to see it again-

Mike Everett:

Ever.

Chris Bay:

… but when we turn that wind current, and now all of a sudden that headwind turns into a tailwind, it’s now flowing to them and don’t they get to reuse that money.

Mike Everett:

They have access to it in an income-tax-free environment. That’s what blows people away, but this is what separates us from everybody else. We show them how to have more than one use of that dollar over and over and over.

Chris Bay:

So talk to me a little bit about how rapidly because that very first thing is that we reduce debt rapidly. Give me a range. Give me, in general, over the hundreds of clients that you’ve helped turn their wind currents, generally, when are they able to pay off their outside debt?

Mike Everett:

I would say the average client, and I’m just talking average, is 100% out of debt in a five to eight year range. When you’re showing people this kind of thing, they’re always going, “Well, there’s no way that this is possible,” but once you understand what the wind current is and how you can control the wind current, it makes all the difference in the world.

Chris Bay:

That’s pretty powerful. Now, I have a little personal story along with that just because you were my coach originally in Infinite Banking.

Mike Everett:

That’s correct.

Chris Bay:

When we were able to turn our wind current, we were able to pay off our outside debt in 26 months.

Mike Everett:

Unreal.

Chris Bay:

It’s unbelievable. We have clients that will actually be debt free in the very first month of starting their plan.

Mike Everett:

That’s correct.

Chris Bay:

Now, not everybody’s that way.

Mike Everett:

No.

Chris Bay:

So give me a long stretch. What would you say is the longest it’s taken one of your clients to be completely debt free? You’re talking about mortgage. You’re talking about student loans. You’re talking about business debt, any kind of debt at all. What is the longest that you can recall that it’s taken somebody to be debt free from that outside debt to somebody else?

Mike Everett:

Somewhere around 11 to 12 years. 11 to 12 years, but yet when we go out and get a mortgage, we get it for 30 years. So if you turn around and you tell somebody, “Oh, by the way, we’re going to get you 18 to 23 years on your mortgage,” I don’t think we have a problem.

Chris Bay:

No, and when you think about it if a mortgage is, let’s say, 30 years long and the amount of interest that you pay during that time period, if you were able to shrink that mortgage down to let’s just say 10 years, think of the amount of interest that you save somebody.

Mike Everett:

It’s tens of thousands of dollars, probably close to… On a quarter of a million dollar house, it’s like a $100,000. The numbers are just astronomical.

Chris Bay:

Yeah, one of the data points that I like to share in our Boot Camps is that the average American over a lifetime… and we’re talking mortgages, student loans, car debt, credit card debt, all of that… the average American is going to lose $600,000 just in interest over a lifetime. We can teach people not only how to save that $600,000 in interest, but actually make that $600,000, which sounds too good to be true.

Mike Everett:

It does.

Chris Bay:

Okay, so the very first thing IBC does is it reduces debt rapidly by turning the wind current. Second, teaching people how to finance everything. Now, that one I find takes the most teaching. People don’t get that.

Mike Everett:

It does.

Chris Bay:

So once I’m debt free, how does this thing work for me? How is it that I finance things in my life? Can you give some examples or paint a picture for us?

Mike Everett:

The greatest example we give is how to finance a car. When we go out and we buy cars, we either save up money for three or four years and pay cash or we go down to the bank and finance it. What we’re going to do is we’re going to just kind of stick on the cash guy for just a little bit because this’ll be the hardest guy to get to understand why we do what we do. He saves money, but then the minute he buys a car, he’s back down to zero. Then he has to continue to do that over a lifetime with all of his cars.

Mike Everett:

So imagine if you created a system where you had access to that money, but it continued to grow over time. When I say grow over time, I’m talking about exponential growth. What we’re doing is we’re just getting… You remember we talked about being able to use that dollar over and over again. That’s what we’re talking about in being able to finance things, but we buy washers and dryers, we buy cars, we go on vacation, we have credit card debt. We learn how to finance everything that we purchase through the Infinite Banking Concept.

Chris Bay:

One of the things that strikes me is that because I was a cash guy and we followed Dave Ramsey’s plan for seven years. We didn’t go on vacations. We didn’t go out to eat very much. I mean, we weren’t having very much fun, and we were slowly getting our debt snowball… We were slowly getting that debt paid down, but not nearly as rapidly as we did when we started Infinite Banking.

Mike Everett:

Right.

Chris Bay:

The piece that struck me is if I’m paying cash, that means I’m saving up a pool of cash and then I’m going and paying cash for that item. Every single time I am killing the compounding interest.

Mike Everett:

You are.

Chris Bay:

Every single time I’m starting over. So I’m never really building up anything with that, that approach.

Mike Everett:

Correct.

Chris Bay:

Whereas with Infinite Banking, not only am I really going to be able to pay cash, but I’m also having my money compounding and growing for me, and it’s never interrupted.

Mike Everett:

Correct.

Chris Bay:

Pretty powerful overlay [crosstalk 00:00:09:47].

Mike Everett:

It is. It’s big.

Chris Bay:

Okay, let’s jump into the third thing. Is there such thing as tax-free retirement? Well, we say yes. How does that happen?

Mike Everett:

Well, of course once again, there’s only one pool of money, but what we’re trying to do is we’re creating a system to where you are controlling the entire pool of money that you have access to. So when we’re taking those payments that we were making for cars and homes and credit cards and vacations and stuff and continuing to reuse that money, then what we’re doing is we’re creating a larger pool and it’s still compounding. But at one point in time, you’re going to want to start to access that money, the larger pool, for income. Instead of you utilizing a 401K or an IRA or a mutual fund that is going to have tax on it, we’re going to show you how to take policy loans and be able to access that money in an income-tax-free environment.

Chris Bay:

There’s been many, many examples that we’ve looked at. In Nelson’s book, Becoming Your Own Banker which we highly recommend to all of our listeners to get a copy and read it, Nelson shows many examples of when people are pulling that money out… as he calls it, passive income, retirement income, whatever you want to call it… and you’re pulling it out as a loan, it’s not taxed. In many cases, if you’ve capitalized your system and given it time to do what it needs to do, even though you’re pulling out living expenses, pulling out income, it’s still growing and compounding. So the question of… and I find this with a lot of my clients that are in their fifties or sixties, their biggest concern is they’re going to run out of money in retirement. Well, in this situation, they never have to worry about running out of money.

Mike Everett:

Nope.

Chris Bay:

Nope. That lets you sleep pretty well at night.

Mike Everett:

It does.

Chris Bay:

Okay, so that’s tax-free retirement. How about the fourth thing IBC does? That is tax-free wealth transfer. Powerful.

Mike Everett:

It’s gigantic. When you think about some of the wealthy families, they’ve continued to do this for generations, for literally for hundreds of years. What we’re trying to show people is this life insurance policy that they put together, even though we’re able to use it along the way, what we’re doing is we’re guaranteeing that they’re going to be able to direct 100% of the direction of that money through this wealth transfer. It’s pretty unbelievable.

Chris Bay:

It makes me think of Nelson’s number one principle, and that is?

Mike Everett:

Think longterm.

Chris Bay:

Think longterm, brother. So when you’re talking about think longterm, what are you thinking?

Mike Everett:

I’m thinking of my grandkids. I’m thinking of my great grandkids. So literally when we go to work with families, we’re talking about two and three generations from now. When you’re thinking like that, you’re going to be able to create a wealth transfer that people won’t believe is possible.

Chris Bay:

One of the things that I learned at this last Nelson Nash Institute Think Tank was the phrase “Rags to rags in three generations.” What that means for the listeners is that one generation works their tail off and they build some wealth. Then that wealth gets transferred onto the next generation, but by the time that wealth gets transferred to the third generation, it’s gone. The problem in that is the knowledge has not been passed on from one generation to the next. One of the things that we do at Life Success & Legacy is that we work with generations within families so that not just the initial generation, but future generations, are learning how this works.

Mike Everett:

Yeah, we want to sit down with families. We want them to understand that when they hand that baton off, it has to do with money, everybody knows what’s going on.

Chris Bay:

That’s right. That’s right. So that’s really kind of the big picture, four things that Infinite Banking can do. Obviously, there’s a lot more education that goes into this. Nelson’s book, Becoming Your Own Banker, is available on our website at lifesuccesslegacy.com. We highly encourage everyone to read it. This is just the beginning. That book is a 10-hour course of instruction. Our boot camps that we do are typically about three hours long, and we have those both through web conferences as well as live around in different regions. Mike, thanks for joining me.

Mike Everett:

Thanks, Chris.

Chris Bay:

I look forward to our next conversation.

Mike Everett:

You bet. Have a great day.

Life Success & Legacy Triagle

In this episode we begin discussing a very packed chapter of Nelson’s Becoming Your Own Banker… How to actually create your own banking system. This first part we touch on the idea that you finance everything you buy. Listen to what Nelson was getting at.


Life Success & Legacy Triagle

In this episode Mike and Chris unpack Nelson’s chapter on creating a bank like the ones we already know. What does that even mean? How can we create a bank like the ones on the street corners? Take a listen and find out. It may just surprise you to find out how simple the process can be!


Life Success & Legacy Triagle

In this podcast Mike and Chris discuss the problem from Nelson’s Becoming Your Own Banker. This can be a pivotal moment in the understanding of Infinite Banking. We all struggle with ‘the problem’, but as Mike and Nelson have said, “Do you want to get better?” Take a deep dive, we think you’ll enjoy it!


Life Success & Legacy Triagle

In this episode of the Becoming Your Own Banker book walk, Mike and Chris discuss one of Nelson’s most important concepts, The Grocery Store. Pay close attention, this one is packed with a ton of information!


Life Success & Legacy Triagle

In this episode, Mike and Chris dive into one of Nelson’s most simple, yet complicated concepts; imagination. We can all get stuck in our old way of thinking and we must remember that the Infinite Banking Concept is, as Nelson would say, only limited by your imagination! Please enjoy this episode!


Life Success & Legacy Triagle

In this episode Mike and Chris tackle Page 12 of Nelson’s Becoming Your Own Banker which is aptly named ‘How the Infinite Banking Concept got started’. Chris immediately points out one of Nelson’s often used phrases, “Hardship often helps us to see things to which we are normally blind.”

This introduction to the birth of Infinite Banking reveals something that all of us can relate to: hardship. Take a listen and we think you’ll agree that Nelson left us immeasurable knowledge and expertise in that hardship thing we all deal with.

You can listen to more of our podcasts here!