YOUR DAILY REAL ESTATE INVESTMENT SHOW
May 25, 2022

Infinite Banking Basics with Nate Scott

“There's a reason banks got marble floors, and we've got wood.”   In this episode of Cash Flow Pro, we talk with Nate Scott, the Client Development Coach from Living Wealth. Nate’s focus is to help others become bankers and achieve...


“There's a reason banks got marble floors, and we've got wood.”

 

In this episode of Cash Flow Pro, we talk with Nate Scott, the Client Development Coach from Living Wealth. Nate’s focus is to help others become bankers and achieve financial freedom through the infinite banking method.

 

Today, Nate is here to go over the basics with us so we can better understand the ins and outs of infinite banking.

 

In this episode, we discuss:

  • How to begin the process of infinite banking
  • Using policy loans to reinvest and grow your wealth
  • Going over hypotheticals and examples that help you understand the “circle form” of infinite banking.

 

Make sure to tune in on this episode to find out more!

 

Find your flow,

Casey Brown

 

Resources mentioned in this podcast:

  1. https://livingwealth.com/staff/nate-scott/

 

 

 

Transcript

Casey Brown  0:06  
Hey there, and welcome to today's episode of cash flow Pro, your daily real estate investing podcast and YouTube channel. I am here today with Nate Scott of living wealth. And we had an episode not long ago, where we discussed this concept of infinite banking. Okay, the Infinite Banking concept was pretty deep. And I don't know that we were all that well situated to, to get to be able to get a full grasp on just how how the brevity of the topic, okay, so what we're going to do today is we're going to cover with Nate some of the basics again. So some of it's going to be repeat. The we're hoping is going to be new stuff. And it's going we're hoping to try to take some of the pieces that we got before and plug these things together. So Nate, welcome to the show.

Unknown Speaker  1:05  
Well, wow, Casey, thank you for having me on. This is exciting. I'm gonna do an even bigger world and see if I can add and fill in the gaps for what your audience may have missed on the previous one.

Casey Brown  1:17  
Yeah, yeah. And that's and again, and Nate and I were talking pre show. And, you know, I told him that I tend to my audience, the listeners, I feel like when I have a gap, I feel like that gap probably goes into the same spot in the listeners mind. And what happens? What happened in that particular episode was was then I got the feedback from the listeners, and most certainly, there was questions, the exact questions I had. So So and again, that's been, that's been a couple of months ago. So I don't necessarily remember exactly what those were. So I'm gonna let you fill in and start night by telling us, first thing we want to hear is, who you are, where you come from, and what your story is, and how you got started doing what you do now

Unknown Speaker  2:04  
are just outside Kansas City, Kansas, on the Kansas borders where we're headquartered living well. I'm actually a third generation into the family business, essentially, my grandfather in law started, so I actually married his oldest granddaughter. So I know I'm not blood, but you know, I guess I count as 13. And we he was introduced to this infinite banking concept back in 2001. So we've essentially been, he'd been in the financial, doing programs, pensions, and you know, all sorts of different things. But we as a firm have been here for 21 years really focused on all we all we've done is infinite banking, we pretty much we've gotten, you know, typical financial planning style stuff. And that's really where I fit in, I got here in 2012. So I've been in been in it with him for 10 years. Practically dating myself, but also doing it professionally. I really do believe that this solution it provides is very desperately wanted and needed by most people. But as you bring up, it's not the simplest thing to talk about. I wish it was a lot simpler to talk about. I wish it was kind of an idea. You know, that would make my life a lot easier. If we could just say, on a big bang, but among here we go, you know, and it's but it's

Casey Brown  3:29  
his money. Exactly.

Unknown Speaker  3:32  
It's a get rich, quick scheme. It almost sounds schemee. And I want I want to stress that it's actually not. It really it really. Of course, snake oil may say that I'm saying it's actually not it makes a lot of really perfectly for certain people's objectives. But it is possible that your objectives are not actually looking for this type of solution. So we want to lay that out there. But the solution itself works and offers but supposed to offer especially to a certain group of people. I think it can help everybody but certainly it we like how it helps them. And essentially, the one thing I like to say it I'll get it out of the way, in process to become your own banker using whole life insurance really can't help everybody the question is the scale. B, if that makes sense. So everybody has banking account has bank accounts. Obviously, it's impossible to rival that one. And infinite banking is really a way in and it's probably not the only way. But it is a good way. And it's the best way I know of and I don't plan to say I know everything but now, I know it works. Having done it for 10 years, it's the best way that we know of to become more profitable, and what we call the bank and which is different in the investment arena. So I think most most of our listeners probably make a lot of money. Getting out of the banking arena and putting it in the investment arena. That's actually kind of their goal in life, right? We don't want a lot of money yeah making arena, we want to pull it out and move it into the investment arena. So we can actually make a return. What we're trying to solve is what? What is actually possible that we can that the bank and what I'm referring to that is the flow of money, in other words, that it's not

Casey Brown  5:21  
making money for the consumer, though. Yeah, rather than the institution. We

Unknown Speaker  5:26  
all know, the money. And then you're not sure with us. So this is this is

Casey Brown  5:31  
my dad. My stepdad actually used to say, he used to say, there's a reason banks got marble floors, and we've got wood.

Unknown Speaker  5:39  
Yeah, they got all the money. We're the one that gave it. That's right.

Casey Brown  5:43  
That's right. So incredibly

Unknown Speaker  5:45  
profitable business. There's just no feasible way for the average person to get into the banking world, like, like to create a real bank is a very profitable business model. It takes a whole bunch of money. Yep, super arduous endeavor. And the barrier to entry is very high. So most people are saying, I don't want to be an entrepreneur, if you don't want to be an entrepreneur. profitable, is there another way for a little me to plug in and make money kind of like a bank makes money? which right now is not possible in the banking world. That's right. You can't do it. So the only solution is let's take money out of the banking arena, put it in the investment arena hope to earn return to there because that doesn't make money for me. This actually what I'm doing is trying to translate is actually not weird. It just saying, are there other tools that exist, that we can treat kind of like a bank makes us more money doing the same things we're already doing? Now? I think your listeners may have a whole bunch of questions about politics, we could talk as much as we want about that. But that's what we're trying to solve. We're also not trying to tell people that they should, instead of making investments put money in these banking policies. That's right. So we're not trying to convince somebody that the rate of return is greater than the rate of return that you receive elsewhere. That's not what we're trying to sell. We're just trying to sell it a different way. Essentially, in other words, building up money in a bank account, and then finding a deal to put that money to work in. And then that deal may pay out some cash flow, it may pay out some, you know, some refinancing, especially like you'll get a huge big check

Casey Brown  7:32  
back,

Unknown Speaker  7:33  
plus all the and we don't like haven't said the bank wrong, because it's just wasting money. So we have to go find the next deal. But what we're trying to say is there's actually a way to have that money, make money. And um, wow. Yeah,

Casey Brown  7:49  
okay. All right. So let's start it. Let's start at step one of this process and say, I have 50,000. Do I have $50,000?

Unknown Speaker  8:05  
Yeah, you have to do that. What do I do with it? Yeah, exactly. Right. So this actually goes back to the scale question, Casey. So like, in other words, I believe to practice this concept in some way. The question is scale. Whenever I talk to somebody, I don't know how much how do you want to get it? Let's go back to your example, then what we can flush it out. And there's many different ways as you okay. So, but let's say you have $50,000, we would take a look, and you would come to me saying, Nate, I have $50,000 My question to you would be okay, what is your objective? There's nothing you could say, is this your emergency fund money. Like to keep on the side, because you, if all hell breaks loose, you would like to be able to have some liquid money that's not tied into an asset. That would that was, my, my recommendation to you in that world would maybe be different than if you came to me $2. But I am looking to put that to work someplace like in the real estate world. Well, I'm looking to make an investment with this. And so what I'm saying is there's a few different tracks, there's a few different scales you can possibly go down to determine my recommendation based on really what your objective you have. Right? So yeah, but with that being said, you know, I actually ran a scenario for a real estate really, just couple years ago, and they were cooking group really, they had a guy who was kind of the head coach and he was teaching people how to find opportunities mainly in like small commercial properties like for plexes and eight plexes. And, you know, for unit sure how to find a deal, how to rehab it and it was all a thing and so he asked me to come on for them. Let's regroup and they would try $50,000 To buy a $500,000, small four Plex. Okay, I would find that right now. But there's 16 2017, I don't know, it was two years ago, and I bring this up to say, the guy, the idea was, we have can have, you're gonna build up 50 grand in a bank account that they already have, and they're trying to get there. So they can make an investment in something. And so they're trying to build up this cash to be able to do it, and what we're trying to figure out to find this investment with a bank account having 50 grand, or would it have been better to move the 50? Grand? This is the question we're trying to figure out. Right? So why would it make sense for somebody to, to consider taking cash from the moving into these specific types of policies, which by the way, we haven't even really talked much about, I'm kind of leaning on the fact that you just had a guy talk about some of the Yeah. If need be,

Casey Brown  11:10  
we want to, we want to plug in, and I'm making notes here, so that we can so that we can go back and re hash each spot as we were going to start, we're gonna go to the next point, then we're going to go back go over those, then we're gonna go back and go over the and add, we're going to add to this here so that we can figure out the process. My folks are process driven people that we want to, to be able to provide value to so so we have to nail this down in a process and say, That's why I started with with 50,000. And how do we how do we make that work, or at least give us the beginnings of how that looks for an infinite banking setup. So so far, I've got the money. And I've got determine what you desire, what you're determined use you desire with the money, whether it's like you said, whether it's emergency fund, or whether it's something that, hey, this is additional income, that my wife and I got an inheritance or something that, that that is just sitting out there that I want to make sure I put to work so that I'm not wasting and so on, so on.

Unknown Speaker  12:19  
Yeah, you're right. So if we want to take a step back, maybe that can kind of the idea. object, I can flush out all of this, essentially, each each individual so there is value in the policy itself. So policies that we use approximate of banking, they grow guaranteed, they're guaranteed to increase every single year, they earn dividends. If the company most of the companies we would recommend are these things called mutual companies. And they've been around since the mid 80s. Companies we have, and they pay dividends every single year. So I'm saying the asset itself, is actually quite valuable in a lot of ways. But there's all of it's very liquid. So we can use 100% of the cash value and exist anytime. There's no rules or limits. And it's not a tax free basis bases. So there's a lot of value. And we can dive into each of those if we want in the asset itself. But as you brought up last year, it's actually less about the product itself. And it is more about the process that when you own the product, if that makes sense. So that's really what the main concept is. So it has some value that some people may really enjoy having. But it's not actually infinite banking, infinite banking is not equated with whole life. Specifically, cash value life insurance built for this purpose. That is simply a means to an end. The end is I want to become profitable as in the banking arena, right? So that can may lead us back to, you know, the example that I built or that that I'll lean on potentially for you know, that investment, we just kind of said the same thing. We think this is $50,000. And so these people are going to build up this money anyway. Maybe they've got to get there. Even like as an agent, well, most minimum investment requirements. I don't know if maybe your audience can get past that based on that. But I want to take some money, right?

Casey Brown  14:33  
Right. Yeah, that's right. I mean, you know, 50,000 is in in in all respects. 50,000 is kind of, well, it's our minimum for our for our fund that we've got, again, yeah, and 50,000 Yeah, it's kind of it's kind of yeah, if you find one that's less than that, you know, you again, it's risk the reward. You just less than that. You just gotta you almost have to question the operator because whether or not they're going to be handling tons of investor relations issues rather than, rather than out looking for the next deal. So, so you're basically looking at five investors per the one, and it can get pretty hairy, pretty marketing can become a relations nightmare. You have to,

Unknown Speaker  15:23  
there's economies of scale that exist for a reason. So what would that mean? Does that build up someplace? That's banking? Right?

Casey Brown  15:33  
That's where we can, that's where I came up with. That's where I came up with the 50,000. Just just because that's what you know, excited if that's a minimum investment in somebody's looking at this concept, is that a reasonable amount that could even be have anything done with because what what I don't what I'm trying to stay away from here is the concept that, that, that my, the listener is going to have to have $2 million to in order $5 million, in order to make this be a reasonable way to operate. Now, obviously, the process could could still be there. But we want to just see, what does it take to implement this process? And have this be part of their plan?

Unknown Speaker  16:13  
No minimum amount get started with this. Casey, we've got clients who pay a couple 100 bucks a month into a policy to start. Of course, the insurance paid millions of dollars a year to start, there is no minimum, there's no maximum. That's what we love about it. There's no rules like in the retirement program style world, you can put as much money as you want and have distributions be tax free,

Casey Brown  16:34  
but a little bit. So does the policy become like a pass through? It?

Unknown Speaker  16:37  
Does? That's the concept. Yes. Okay. So essentially, I don't think it fulfills the need not to offer you a new investment. Banking, which is mostly a flow. style. i No one wants to have we like having money in the bank. But no one wants to have a lot of money in the bank. Because that means you're just wasting money.

Casey Brown  17:05  
Yep, a chart? Because? Yeah. So somebody puts $50,000 into a whole life insurance policy or contract. And then they turn right around and draw that money out as what?

Unknown Speaker  17:28  
Yes, they draw that out as typically, I would recommend a policy loan if that's what you're asking.

Casey Brown  17:35  
Okay, yeah. Is that Is that so that? Is that the general idea here? What's that?

Unknown Speaker  17:41  
Yeah, so there's multiple, the best way to really practice the content is through a policy loan. So let me actually flesh it out, I'll show you exactly what we're talking about. Yeah, and then let's go for it, then we can flesh a whole bunch of the pieces out one by one once, they kind of get the full picture. So in this scenario, what we're going to $1,000 in title policy cash value to be able to make an a downpayment, or an investment, depending on what group. And so I think we put in about $70,000. So we put in a little bit more than what we actually needed in order to fund it. But that was well worth but all we want to do is make sure our cash value was over 50 grand, I think we were up in the upper 60s or something like that, then we have like $67,000 in cash value or something of that nature. And the individual is going to pull a $50,000 to fund this deal, they're going to make this investment opportunity.

Casey Brown  18:45  
Okay.

Unknown Speaker  18:48  
This guy's word they were shooting for an average of about 9% cash flow. That was what they

Casey Brown  18:55  
Okay. Okay. And his deal, and his deal is deal outside of the insurance company. Okay, cool. Nothing new with the policy at this

Unknown Speaker  19:03  
point. Right. The policy is kind of the flow through, you know, that's what we're trying to talk about the policies. Yep. If we were using the policy to finance our investments, okay, don't go get financing. I'm just saying like your portion, your downpayment. We're now instead of financing from a checking account and writing a check. Yeah, I'm not getting a policy and then pull the money out of the policy to fund the deals. So okay. So the same, just how we paid for the deal is different. And so in this world, what I suggest we do is we'll pull the $50,000 out, we'll put it in the deal. And this guy was hoping to get 9% That's what he was a good deal. cash on cash on your down payment on what you put in. That's about $4,500 A year 9% $4,500 Every year in causative and paying the bank paying all the expenses to run the operation and then you end up with a net of $4,500. Yeah, that money has to go someplace. Correct. So it can exist in an ether. The normal route is to have that money accumulate in a bank account until it is sizable enough.

Casey Brown  20:24  
The $4,500 per year. Okay,

Unknown Speaker  20:29  
what do we get most of the time, whenever you get rental income or passive income of any sort, it normally fills up in the bank account until it's sizable.

Casey Brown  20:38  
Am I trying to drive

Unknown Speaker  20:40  
that's the way I do it personally. So yep, place, and then we're gonna look to put it to work. And so we're just going to assume that instead of leaving that money in a bank account, as it's waiting to be redeployed, we're going to put that money back into the policy. Okay, the policy as the bank, that's where we want money to flow to and from, so what we're doing instead of having it go directly back to the policy itself, where we put where we pulled the money from,

Casey Brown  21:10  
okay? And pays that note. So, so now you own now you owe 45, five against a $50,000. Policy. And you're still getting,

Unknown Speaker  21:22  
and you're getting the full cash value, even while the loan is outstanding, which is part of what we're going to go to and describe to you how. But essentially said, let's just assume he holds this thing for 20 years, okay. $4,500 a year for 20 years, just to keep it simple. That means 20 years is $90,000. So essentially, his investment is going to produce for him in cash flow $90,000 a positive cash flow over 20 years. Now, that doesn't take into account obviously, the ability for the property to appreciate amortization of the loan, used by

Casey Brown  22:14  
getting or getting the initial capital back. Right?

Unknown Speaker  22:20  
Or just the value of the entire property over 20. Okay, appreciate you. If you have amortization, what I'm saying is you, you have all of that, whether you have a policy fine fund your deal, or whether you just fund your deal, you got it Sure.

Casey Brown  22:36  
Okay.

Unknown Speaker  22:39  
Anything aspect of it, which essentially $90,000 of cash flow that would make putting out so the policy, I mean, excuse me, the investment property produced 90,000. Over that time, all we've really changed is where the money is coming from to fund the deal. And then where it's going to go to as it's producing passive income, not a bank account, which is what you put in or trying to get off that track towards, you get more than what you owe. And over the course of the time, the timeframe, the policy produced, so it received $90,000 from the investment property, cash flow, but it actually produced and $62,000. of cash value 90,000 came from the cash flow itself. So what I'm trying to say is the cash flow profit, but the cash value of the policy is 162,000. So we've actually made in profit by financing the deal from the policy. So the policy,

Casey Brown  23:58  
the 50, initial $50,000 still collects interest and dividends, even though you've borrowed that out, but there is there an interest expense on the money you borrowed out.

Unknown Speaker  24:10  
Yeah, there is a policy loan, we'll have a policy loan interest rate on it. That's right.

Casey Brown  24:17  
Okay, so your

Unknown Speaker  24:19  
is that you've got a cash value, but it's compounding interest in dividends. And we collateralize that to receive a policy loan from the insurance company, which allows the policy cash value on the entire basis, and we're only going to pay interest only at any given time. So if we're going to start plugging cash flow back into it, our loan balance is going to be decreasing the zero at some point, whereas the entire value is going to be compounding the entire time. It's it's very similar into the world of real estate where you use leverage To buy a property and you're compounding on the entire property. In other words, the property is the entire amount of the property, though you may only put in a very capital to receive the company and the entire portion of the property, it's actually being able to do that. But with money, not with property so easy to compound the entire time while we're, quote unquote amortizing it out. But the good news is, is that you actually control where the insurance company offers you this collateralized policy loan on 100% of your cash value at all times. No question to ask no, no. Yeah, there's no there's no approval. It's not like opening a home equity line of credit against them.

Casey Brown  25:51  
Well, then, and then the other gentleman we had on here talked about the you still have the death benefit the whole time, too. So So you still have the the death payout, if something God forbid were to happen. You still, you're still holding that kind of off to the side where, hey, this

Unknown Speaker  26:12  
mean, we hope you don't die anytime soon. The insurance company hopes best way to beat the crap out of insurance companies to die early. You can put it up?

Casey Brown  26:21  
That's right. I mean, yeah,

Unknown Speaker  26:26  
they hope you don't die. You die. But it's nice to know that it's there. But you're right.

Casey Brown  26:31  
There in the professional gambling business, right. You're gambling on your life. That's right. All right. So somebody comes to you and buys a now in the insurance business, let's say that I have $50,000. What type of a fool What type of a life a whole life insurance policy, what amount of a whole life insurance policy would I be able to secure with a $50,000 investment.

Unknown Speaker  27:08  
That case, we don't even really bring up the death benefit much. And what I mean by that is the average insurance person would tell you would go meet with them, just buying life insurance and they would take a look. And so forth, they're like we would recommend purchasing X amount of death benefit based on

Casey Brown  27:31  
income based on your ability or your needs, exactly your family,

Unknown Speaker  27:37  
your family would suffer without you. And so you need to replace your income with a death benefit. And here's how much that replace Romanenko. That is a typical life insurance discretion. But that's solving for something we're not even trying to solve for. That's essentially what we're

Casey Brown  27:53  
Yep.

Unknown Speaker  27:55  
That was the death benefit is a side effect. It's not it's not a priority priority, goal wise. So we don't even we, we don't even bring up life insurance discussion with somebody essentially. So what that would mean to you, we would build based on how much money you would like to put in how often you'd like to put it in. And we would build produce the highest amount of cash value that we can have them gain. And the least amount of death benefit we can have been produced.

Casey Brown  28:33  
Okay, and then. And then you borrow the money back out. It once it gets to a level like so let's say you want to put $500 a month into this policy, then if it gets up to you, you do that for 100 months to years, basically. And yet you have $50,000 in your in your policy, then then you borrow that out. Use that as a downpayment or use that to buy whatever that investment vehicle is. Then you pay interest on that 50 that you borrowed from your policy, but you're paying that interest to your policy or to the company,

Unknown Speaker  29:24  
essentially to the company. They're the ones using that interest to allow your policy to community. Try to overcompensate it's very similar to kind of like a HELOC style which would maybe more people are understanding where you have a house it's leveraged against it. The House continues doing exactly what the house was going to do. And we pay the bank back with interest that I mean that's essentially

Casey Brown  29:50  
right. So we're so we're so we're making law we're making payments to insurance company and mortgage company basically on income producing assets. Okay, income producing asset yields, let's just say 10 10% or whatever utilized use your $9,000 figure, or 9% $4,500. Figure, right? So then you take that $4,500, and you pay the policy down as you so it's just so we're building, we're building a circle here, right? You you make are the interest payments on the policy, I'm trying to wrap my mind around the little the the interest on the 50,000, we're paying to the company as and then we're paying the principal down with the income from the asset. Okay. So over 20 years, then you just continue or once that once that initial loan is paid off, then you can continue putting that $4,500 towards increasing your policy's value.

Unknown Speaker  30:55  
Yeah, it's a good point. Yeah. So we, you don't exactly we're assuming you're not contributing loan interest from a different source in our little hypothetical. Okay, we're contributing is the amount of rental or passive income that the investment itself is producing, we're just choosing to

Casey Brown  31:18  
so we're not making monthly payment, we're not making monthly interest payments on what I'm making monthly interest payments on the $50,000 loan that we took out of our policy.

Unknown Speaker  31:29  
That's, we're just saying we're going to roll this money back in it is it is ideal to use policies to invest in things that do produce higher amounts of yield than the loan rate policy itself. That's right. So

Casey Brown  31:46  
yeah, yeah, I think that's, I think that's, yeah, I think that's the goal everywhere.

Unknown Speaker  31:55  
The policy itself, it's a rate of return inside the cash rate of four to 5%. By itself. Loan Rate is also typically about four to 5% range to borrow against the cash values. So you there's nothing, something is gonna pretty last four to 5%. And to begin with, and take risks, when you're gonna get a risk free four to 5%. In a policy, that we are assuming that people are putting money to work in places that are going to, at least, they would hope, obviously, investments can go south, but they would hope for more than four to 5%. So then all of the income that's produced can roll back into the Baltic, we can also change the change to casings that you don't have to only invest in cash flow producing assets, because you could put $50,000, and just let the interest accrue inside the policy don't actually have to pay it, that's what it can, it can just add to the loan balance and we could let it accrue in the policy. And then five years down the road when the syndication or when the property is sold, and we base it on appreciation as opposed to cash flow, then we can just plug the balance of the policy back in the money still compounded the entire time. And we're ready to rock and roll in both scenarios. So I wouldn't say it's more strict.

Casey Brown  33:13  
What percentage are you talking about? The original purchase of the policy? What percentage interest does that typically pay? And I know that fluctuates, but are we because because I think so many people immediately I know where my mind goes. And like I said, I'm a pretty average guy. So so I feel like my mind goes where a lot of people's mind goes. And that is to the interest that is accumulate. So if I buy a $50,000 policy and didn't do anything, my mind automatically goes to the 1,000th of a percent that a savings account pays. And that's virtually you might as well just take your money and go set it on fire. So you and use it to heat your house because heating oil is so expensive. But what what is what is the percentage that that pays

Unknown Speaker  34:08  
the asset itself? That's a good point. So that's what I was trying to bring up a lot. The asset itself has value in the bank and how to deploy that asset. So obviously, the policy grows by significant more than the bank and that's why we're really using sure to grow somewhere in the three and a half to four and a half percent range somewhere. Okay. Okay. And so

Casey Brown  34:30  
certainly better than a CD or better than a savings account or really better than than just a lot of other things. By that you can invest it.

Unknown Speaker  34:38  
Yeah. In the risk free world, right. So in other words, we're speaking is guaranteed to grow there's absolutely no volatility or market risk involved inside of a life insurance policies grow every single year. So there's value in that. We're happy with that. But really what we're after is not just that it's really based on okay. Example, I was able to make an investment that producing $90,000 of cash flow, but I was able to combine my banking with my investments in up with 161,000. So they make 90,000. But I have 161,000 of actual to redeploy, based on the the ability of my cash value on the entire amount over any length of time you're talking about, even while it's leveraged out. So I'm getting that amortization appreciation style effect that we get in the real estate world, in just the money. Money world. So we get that same effect that occurs in the real estate world, as well. So this is why we say essentially complements any deal like we can make more money on any sort of investment or anything we're doing financially by, we find it we can make in this example, we almost as we did in the asset itself, so we're trying to find the best fingers don't drink all the Kool Aid, you'll hear us, like having your money do multiple jobs. And that actually is the truth, honestly, I mean, essentially, being this property, while it's also compounding in this policy, while it's also producing this death benefit for your family. Yeah, you just built up cash to begin with. And I don't want to get too deep into taxes, but the interest you pay on your policy loan, yeah. Is a deduction to you, if you use it for an investment, just like if you borrowed the money from any better or money from the bank or whatever. Yeah. Borrow money Life Insurance Company using our money as collateral. So any Yep, just like if we borrowed money from any source to to make an investment, the interest is deductible. So sure, not only to make an extra $71,000 of profit, but we also got to increase our overall tax deductions over that time.

Casey Brown  36:56  
So yeah, so the the fringe benefits or whatever just continues upon the

Unknown Speaker  37:00  
benefits involved. Without the tax benefits, but it's just nice to dive into the taxpayer, the death benefit, and all these other little fringe benefits that are nice, just they're sure. But they were trying to figure out a way that we can make money, even when it's not invested. That's essentially what we're trying to solve, as I mentioned, scale as well, because I think almost everybody believes in having some sort of emergency fund available most Oh, yeah. emergency funds. And so the average person will have, especially if they're relatively successful $50, it's not uncommon for people to just keep kind of on the sidelines as the rainy day.

Casey Brown  37:45  
Except past.

Unknown Speaker  37:47  
Yep, this isn't bad. They're not even looking to invest. They're not they're just, it's just helps us sleep better at night. And that's definitely true. But the opposite. Money sit there for 3040 years, is actually mind blowing. Hundreds of 1000 I'm not gonna talk about inflation, I'm just saying like what you could get if you transitioned out of that into something that actually produce profit,

Casey Brown  38:09  
or income. Yep.

Unknown Speaker  38:11  
Right now, but I wanted to say it's about 150, for every 50 grand over a lifetime, in the emergency fund, it's about 150 to 200,000, if all you did was move that to the infinite solve the need for an emergency fund with liquid cash that's guaranteed to sound of a policy, which really what you want for an arrangement. So that small scale, the larger scale, and building up capital that you plan on showing that would be a larger scale, infinite banking, the new tiny, small scales, just just moving over cash that's not doing anything. And then there's the other schedule, we're going to move over large amounts of money in order to produce deployable cash that we're going to we actually plan on using to make investments.

Casey Brown  38:54  
Yeah. Well, awesome night, you finally I think we hopefully we've cracked the code on getting this this because I think we finally putting it into the circle form really is going to let it resonate with the listeners as far as where they put it in, what happens to it as it goes around and how it comes back. Forward. So first of all, before we before we jump off here, I have two quick questions. And we've gone a little bit over today. So I want to maybe get some some decently quick answers from you. But what is the best book that you've read recently?

Unknown Speaker  39:30  
Man, you know, I would say

Casey Brown  39:33  
orders have to be recently what's every well I would recommend

Unknown Speaker  39:39  
that people read the book that started this whole thing. So that's the book that has impacted my financial life more than any other book that's becoming your own banker by our Nelson Nash. That would be the book that started this all and it had the greatest impact on my life obviously is what I do professionally. out that would be what what I would focus on Absolutely.

Casey Brown  40:02  
Awesome. Now where is where? Where have you taken your the best trip of your life? Or where do you hope to take the best trip of your life?

Unknown Speaker  40:13  
I would say the best you know, the most relaxing best trip is headed to kawaii I love the island of Hawaii and Hawaii. Beautiful place. And it's as far as why it goes depends on what you want. It's the least touristy place to go in Hawaii. It's the least touristy. Relaxing, hanging the beach and different and stay in the United States, which, you know, I've traveled other countries I like the US offer. And you know, while going to Mexico and go into some other tropical places is nice. Sure, I think what you offer in that type of vibe, and so is

Casey Brown  40:54  
good deal. And how can the listeners reach out to you? If they want to maybe even get more information or pick your brain on Infinite Banking? Or maybe even make an investment or do do some business with you? How can the listeners reach out to you?

Unknown Speaker  41:09  
Yeah, well, they I'm actually they're free to email me my email is Nate at living wealth.com Nate and a community I'm happy to answer emails all day. But we do have obviously a website living wealth.com free ebook that talks about this topic if you'd like. And we also have a free beginner's course, which actually goes into a bit more depth than the ebook both of them free. And so that would be really the next step for talking with us is to email me directly ask some questions. But either way, I would say the next step probably would be to get your hands on a resource and take a bit of a deeper dive. So questions. But then also Nelson Nash's book you can buy, it's like 20 bucks, 25 bucks. Sure, would also be a great next step.

Casey Brown  41:54  
Nate, thank you so much for your time. I hope the listeners have got some value and and it's maybe hopefully we filled in some of the gaps in the infinite banking concept. So thank you so much, Nate. I hope everybody has a wonderful rest of the day and thanks for listening

Transcribed by https://otter.ai

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Nate Scott

Living Wealth