The Money Advantage provides simple, fun, and doable financial talk that helps wealth creators build time and money freedom with cash flow strategies, Infinite Banking, and alternative investments so you never have to worry about running out of money
Through our family office model, we utilize strategies for cash flow, long-term tax reduction, estate and business legal planning, creative whole life insurance strategies (Privatized Banking), and alternative investments.
Pumpkin Plan Your Business, with Mike Michalowicz
Want to grow and scale a profitable business? It’s just like growing a giant pumpkin! Back on the show after discussing Profit First, we have multi-best-selling author Mike Michalowicz to discuss some of newest books: The Pumpkin Plan, and Get Different.
I promise, a few minutes with this guy and you’ll have a whole new perspective on your business.
So if you want to transform your business, find out how to hit your sweet spot where you’re serving clients you love, profitably, and marketing in a way that always gets results… tune in now!
Table of contents* Welcoming Back Mike Michalowicz* Stand Out from the Crowd* Why You Should Profit First* The Mindset Shift* The Pumpkin Plan* 1. Match the seed to the soil. * 2. Pruning.* Creating Jobs* A Special Offer* About Mike Michalowicz * Book A Strategy Call
Welcoming Back Mike Michalowicz
For the second time, we’re excited to welcome Mike Michalowicz of Profit First back to The Money Advantage. You can read more from his first interview here. We’re fans of Mike because he helps entreprreneurs bring profit into their business FIRST, so that they can help more people.
It’s like putting on your own oxygen mask first, so that you can help others—you’ll do more good for more people when you take care of yourself and your business.
Stand Out from the Crowd
Mike recently asked his clients, “What is your biggest struggle right now?” And for most, their pain point was that they weren’t getting consistent quality in lead flow. This prompted Mike to consider what the root of the problem was.
He determined that industry “best practices,” after some time, become a prime example of what NOT to do. That’s because once they’re adopted throughout the whole industry, everyone's the same. And prospects are seeking someone who stands out—someone who they perceive as uniquely positioned to help them with their problems.
[3:23] “Do you vaguely remember getting that first email that was like, ‘Hey friend’?”
In Mike’s example, he recalls how excited he was to receive his first “hey friend” email. The initial feeling was one of excitement and belonging, until he opened it and realized that it was just marketing. The second time he got an email with that subject line, he was more cautious. And by the third, he stopped opening emails with that subject line altogether.
We’re sure you can relate.
[3:57] “That points to the power of habituation. Meaning when we, the prospect, see something, we very quickly learn to qualify it as relevant or irrelevant. And ‘hey friend’ is irrelevant. What I researched was how to break through the habituation. Best practices are the ‘hey friend’s’ of the world.”
Why You Should Profit First
[5:30] "Every time you...sell something,
Jim Harbaugh’s Contract Shows the Value of Life Insurance
Ever wonder if the rich and famous use life insurance?
Life insurance is a private asset. That’s why you don’t hear a lot about it in the public arena. But wouldn’t you love to hear how life insurance is being used in the lives of people whose names you’d recognize?
Today, we’re talking about some life insurance that’s as close to the spotlight as you get—coach of the Michigan Wolverines, Jim Harbaugh agreed to have his compensation package include life insurance.
Today, we’re going to talk about one case where life insurance was used as executive deferred compensation that benefits both the employee and the employer.
So, if you’d love to see how other people are using life insurance, join us for the conversation!
Table of contents* Why Don’t More People Talk About Life Insurance?* Jim Harbaugh’s Life Insurance* Benefits for Harbaugh’s Heirs* A Creative Way to Use Life Insurance* A Split-Dollar Arrangement* Other Successful Uses of Whole Life Insurance* Book A Strategy Call
Why Don’t More People Talk About Life Insurance?
Well, likely because it’s such a private asset. Whole life insurance shields policy owners from creditors, is not reported to the IRS, and it doesn’t have to be included on FAFSA forms. In fact, it can’t be used in lawsuits either. The privacy afforded by whole life is so valuable, and yet it also means that unless someone talks about their own experience, there’s no way to Google how much insurance someone has or doesn’t have.
By its nature, insurance is private—which means people who have it tend to be private about it. Now that someone in the spotlight—Jim Harbaugh—has publicly spoken about life insurance, it’s a little easier to put it into context for you.
Jim Harbaugh’s Life Insurance
Not only is Jim Harbaugh being paid $5 million a year as a coach for the Michigan Wolverines, but Michigan is also helping him start a life insurance policy as part of his benefits. They’ve loaned him $4 million to start a policy and $2 million a year for the following 5 years.
The ability to leverage his policy means he can take loans without incurring income tax. And as long as he keeps his policy in-force, he does not have to repay the loan from the school until he passes on. A portion of the death benefit will pay it off.
This is what we call a win-win situation—where the school has a near-guarantee to receive their money back, they’ve secured Harbaugh as a coach, and Harbaugh gets the benefit of a policy.
Of course, there are stipulations to this contract. If Harbaugh leaves his coaching position before the contract is up, he will have to repay the premiums loaned to him upon termination or resignation.
Benefits for Harbaugh’s Heirs
Not only will Harbaugh benefit, but this arrangement actually acts as significant protection for his heirs. If Harbaugh were to pass on while Michigan is paying for the policy, they won’t be disinherited. They will receive no less than 150% of the premiums paid on the policy....
How to Get Business Credit, with Ty Crandall
Need capital in your business, fast? Today, we’re talking about another way to get a capital infusion through business credit.
The problem is that most business owners who want financing don’t get as much as they could, because they haven’t worked on the qualification process.
That’s where CreditSuite can help. Ty Crandall has become a recognized authority in business credit building, business credit scoring, and business credit repair. So if you want to improve your fundability, build business credit, or get loans and credit lines… tune in now!
Table of contents* Breaking into the Business Credit World* Credit Reporting* Business Credit vs. Consumer Credit* The Right Time to Build Business Credit* Business Credit Cards vs. Consumer Credit Cards* Leveraging Debt* Building Business Credit Separate from Personal Credit* 1. Create Separation* 2. Get Your Credit In Line* 3. Find Companies that Report to Business Credit Reporting Agencies* Finding the "Sweet Spot"* 4. Start Immediately* Business Credit Gives You Opportunities* Ty Crandall’s Offer* Book A Strategy Call
Access to cash is critical for a business owner. While you don’t want to rely solely on credit for your business cash flow, you don’t want to be stuck in a spot where you need it and don’t have it.
Breaking into the Business Credit World
Ty Crandall's first company was a mortgage company that he quickly grew into a 7-figure company. And he rode that wave right up until the subprime mortgage crash, when things started to go south. While he thought he had access to plenty of capital, it turns out that wasn’t the case. After a few late payments, as he figured out how to navigate a failing business, the unexpected happened.
His credit card companies actually shrunk his credit limit down to what he owed, so that he could not spend anymore, which effectively tanked his credit score. Then they pulled the money out of his personal bank accounts, depleting his cash stores.
When something like this happens, other areas of your life can snowball—checks can bounce, and you can’t use credit to get out of the hole.
Ty worked overtime to get out of this hole, but he couldn’t find quality credit information anywhere. During this period, he learned about business credit, and realized that the information was nearly impossible to access. So he decided to compile information about business credit himself, and begin teaching people how to use it and why.
Many people don’t understand the scope of credit reporting, because it happens in the background.
Life Insurance Demutualization: What it is and What it Means for You
For Infinite Banking, the ideal policy is a specially designed, high cash value, dividend-paying, whole life insurance policy with a mutual company. But some mutual companies, including Ohio National, have recently demutualized. So what is whole life insurance demutualization, and what does it mean?
Today, we’re going to talk about demutualizing and how it affects Infinite Banking policies.
* How a mutual company works* Why you want a mutual company for Infinite Banking* Why life insurance companies demutualize* What to do if your life insurance company demutualizes
Hopefully, we’ll cover the question on your mind. So, if you’d love to see what the future holds for Infinite Banking, join us for the conversation!
Table of contents* Ohio National Demutualization* What is Infinite Banking or Privatized Banking?* What is a Mutual Life Insurance Company?* How Do You Choose the Best Company?* How Does Whole Life Insurance Demutualization Work?* What's the Reason for Ohio National Demutualization?* Book A Strategy Call
Ohio National Demutualization
On March 23rd, a very prominent insurance company, Ohio National, announced their demutualization and planned merge with a Canadian company. In anticipation of the questions, we want to debunk and provide some clarity about what it means to demutualize, and how it should or shouldn’t affect you.
What is Infinite Banking or Privatized Banking?
Conceptualized by Nelson Nash, Infinite Banking is a strategy of accessing the cash value of an insurance policy for leverage. It wasn’t a new function, however his ideas were new. And so, he wrote a book called Becoming Your Own Banker.
By leveraging the cash value of an insurance policy, and borrowing against it rather than withdrawing from it, you can make your money do two jobs. A specially designed policy, for high cash value, with a mutual company, is the preferred method for privatized banking.
What is a Mutual Life Insurance Company?
A mutual insurance company is a company in which policy owners are partial owners of the insurance company, rather than stockholders. As a partial owner, you are entitled to a portion of the company’s profits in the form of dividends. This also means that mutual companies are not beholden to investors. This allows them to operate on a much more conservative basis for long-term performance.
A stock company, on the other hand, does not pay dividends to policy owners. Instead, investors pay dividends to stock owners, who may or may not have a policy. As a result, stock companies have to make short-term, risky decisions to appease stockholders and keep stocks up.
How Do You Choose the Best Company?
In the world of life insurance,
How to Find Money for College, with Seth Greene
Paying for college is daunting, and can be a frustrating experience if you don't know what you're doing. The government may decide that on paper, you can afford plenty... though that's rarely the case with ever-increasing education costs. If you're wondering how to find money for college, look no further.
Today, Seth Greene is joining us to pull back the curtain on financial aid applications, so that you can qualify for as much as possible. If you want to get a jump on college aid planning, and learn the secrets for success, tune into our conversation below!
Table of contents* From Broadway to College Planning* College Financial Aid Leveraging* How to Find Money for College* Student Positioning* The Importance of Starting Early* Filling Aid Applications* Dates to Know for Financial Aid * Your Child’s Path* About Seth Greene* Book A Strategy Call
From Broadway to College Planning
Seth was on his way to college to become the next Broadway star when he got a frantic call from his father saying he had to come home. After some prodding, he discovered that the bill had made his father nervous. And this conversation continued each semester.
By the time he graduated, he had the epiphany that he didn’t want to move to NYC only to struggle. Instead, he decided to help upcoming students save some of the heartbreak that he went through.
As he entered this career, he realized that MOST parents and students aren’t prepared for the cost of college. They don’t realize the true expense; they don’t realize that the cost increases every year; and they rarely start soon enough. Seth’s role as a college financial aid planner isn’t to help parents save—it’s helping them work with what they have.
College Financial Aid Leveraging
4:50 “College financial aid leveraging, according to Money Magazine, is the process by which the schools determine how little financial aid they can give a family and still get them to come.”
Colleges are a business, first and foremost. If it comes down to two students, and one needs $50,000 of aid to attend a $60,000 school, and the other only needs $5,000, which student will the school want more?
5:45 “If your were an NFL team owner, negotiating with a quarterback, you would want to pay that quarterback as little as possible. But that quarterback has an agent.”
Students and families don’t have that agent advocating for them, so financial aid planners act as that negotiator for families. They help students get more government aid, so they'll need less aid from the school, as well as helping students find the best schools for their needs and desires.
How to Find Money for College
Typical strategies for affording school include using what savings you’ve accumulated, going to a cheaper school, skipping school altogether, and/or taking out loans. Of course, many of those options can set you back farther in the long run.
What to Do About Inflation
Inflation is in the news. Should you be concerned? What should you do to make sure you’re protected?
In today’s conversation, we’ll talk about inflation, the consumer price index, and how to stay financially strong so you can build financial freedom. Join us below for the conversation!
Table of contents* What is Inflation?* The Consumer Price Index* CPI Has Risen More than Expected* Will the Fed Raise Interest Rates?* Financial Freedom in the Face of Inflation* Resources and Links:* Book A Strategy Call
What is Inflation?
The most common belief about inflation is that businesses raise their prices to make more profit. However, it’s much more than that. Inflation is linked directly to the money supply. And when the money supply increases, prices tend to increase in proportion.
The feeling of inflation is that your dollars do not go as far—that prices are increasing for items, without the volume rising. It feels as though your dollars are worth less.
Investopedia defines inflation as “the decline of purchasing power of a given currency over time. ... Inflation can be contrasted with deflation, which occurs when the purchasing power of money increases and prices decline.”
If you look at the overall inflation from 1913 to now, there was an average increase of about 3% per year. While in reality some years inflated more or less, we can expect an upward trend in the future—give or take.
The Consumer Price Index
If you’re wondering how inflation is calculated, it’s calculated through something called the Consumer Price Index. Investopedia defines this as “a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.”
What’s interesting is that not all the items you may see inflate are included in this basket of goods. So just because there is a certain inflation rate doesn’t mean that you’ll experience that increase exactly with all products.
The way you may experience inflation is going to depend largely on your geographic location. There’s personal inflation, city inflation, state inflation, national inflation, and international inflation. That’s why your money might go farther (or not as far) when you travel to other countries.
You can see the CPI history for yourself on the Bureau of Labor Statistics site.
CPI Has Risen More than Expected
At the time of writing, the CPI has increased by 0.6% since March, and is up 2.6% since last year. That’s more than projected and represents the highest y...
Mindset + Action
This show has helped me shift how I think about investing and planning. So much so, that I hired them as financial advisors. Their small family office model is unique, and you get a lot of value. So far, I’m very happy.
A Must Listen to Show!
Rachel and Bruce are awesome hosts! They are full of wisdom and bring on guests who have nuggets of wisdom. Highly recommend the listen!
Cheers Bruce and Rachel!
Actionable advice can definitely be found here! Must-subscribe! Be sure to check our previous episodes!