Welcome to another enlightening episode of Raising Private Money with Jay Conner. In this episode, Jay converses with Cameron Christiansen and Anthony Faso, founders of a groundbreaking company specializing in infinite wealth and banking strategies. They delve into innovative financial practices designed to construct sustainable wealth, particularly through real estate investing and private money. This post expands on their enlightening discussion, exploring the fundamentals of infinite banking, criticisms of traditional financial advice, and strategic approaches to achieving financial freedom through alternative investments.
Understanding Infinite Banking
Infinite banking is a cash management strategy, not an investment itself, but a foundation for wise investments. At its core, infinite banking focuses on where you store your capital. Traditional vehicles like savings accounts or 401(k)s are constrained by market volatility and regulations. Instead, infinite banking leverages specially designed whole-life insurance policies to offer safe, liquid storage for your cash.
Whole Life Insurance Policies as Financial Tools
Anthony Faso elucidates that these policies are not primarily obtained for their death benefits, although that’s a component. Instead, they are structured to maximize cash value, ensuring liquidity and robust growth. The distinctive advantage here is the uninterrupted compounding of interest. Clients can access funds and even leverage against their policies, with the money continuing to grow at a tax-free rate of around 4% annually. This method offers a secure, flexible way to manage and grow capital compared to locking funds in a 401(k) until retirement age.
Critique of Traditional Financial Advice
- Passive Income Generation
Cameron Christiansen criticizes typical retirement vehicles like 401(k)s and IRAs for being ineffectual in generating passive income. He emphasizes the necessity of learning the skill to create passive income now, rather than delaying it until late in one’s career. Traditional financial planning often leads people to park their money in stocks, bonds, or mutual funds, with no focus on real-time income creation. By contrast, infinite banking teaches clients to generate cash flow through business ventures or real estate investments.
- Dependency on Financial Advisors
Traditional financial advice tends to create “lemmings,” individuals who follow advisors blindly without understanding the intricacies of their financial decisions. Anthony and Cameron stress the need for financial education. Relying too heavily on advisors can lead to disastrous financial outcomes, especially during economic downturns. Infinite banking, on the other hand, empowers individuals by providing the knowledge and tools to control their financial destinies.
- Lack of Education and Control
One of the principal criticisms highlighted is the lack of financial literacy imparted in traditional advising. Many advisors advocate for clients to hand over their money with little to no explanation of the underlying strategies. This breeds a lack of transparency and understanding. Cameron strongly believes that everyone is capable of managing their finances, given the right education and tools. Infinite banking focuses on empowering clients with the necessary knowledge to make informed financial decisions.
Strategies for Financial Freedom Through Infinite Banking
- Reallocating Funds from 401(k) Plans
Both Cameron and Anthony share personal anecdotes about transitioning their funds from traditional 401(k)s to policies. Cameron speaks to the uneasiness and lack of control associated with 401(k) investments, advocating for reallocating these funds into a more flexible and potentially lucrative vehicle like a whole-life policy. Anthony discusses his decision to liquidate his 401(k), stressing the importance of understanding the pros and cons of such a move. Their experiences underline the need for alternatives to traditional retirement plans.
- Utilizing Private Money for Real Estate Investments
Jay Conner, renowned as the Private Money Authority, emphasizes combining private money strategies with infinite wealth principles for real estate investments. The show addresses how to raise private money without directly soliciting funds, thus enabling investments in real estate that yield higher returns. This strategy, when integrated with infinite banking, allows for leveraging other people’s money while safeguarding personal capital.
- Leveraging Infinite Banking for Business Ventures
Infinite banking isn’t restricted to real estate—it can also be a powerful tool for financing business ventures. Entrepreneurs can use the liquidity of their policies to fund new business opportunities, ensuring that their money continues to grow, uninterrupted. This approach offers an additional layer of financial security and capital efficiency.
10 Lessons Learned in this Episode:
- Introduction to Infinite Wealth
Meet Cameron Christiansen and Anthony Paso, experts in infinite banking and wealth strategies. Understand the podcast’s aim to educate listeners on combining private money strategies with infinite wealth principles.
- Purpose of Raising Private Money
Discover why raising private money is crucial for real estate investors. Learn how this strategy can help you maximize profits and secure better deals in your investment journey.
- Backgrounds of Cameron and Anthony
Delve into the professional backgrounds of Cameron and Anthony. Learn how Cameron transitioned from being a small business owner and Anthony moved from being a CPA to adopting infinite banking strategies.
- Transition from Traditional to Infinite Banking
Explore Anthony Faso’s journey from working in the traditional financial system as a CPA to discovering the infinite banking concept, leading to a career dedicated to teaching these strategies.
- Discovering Infinite Banking
Follow Cameron’s serendipitous discovery of infinite banking. Understand the pivotal role financial education played in his life and how it altered his financial strategies forever.
- Three Reasons Traditional Finance Fails
Identify the top reasons why conventional financial advice often leads to poor outcomes. Learn why traditional methods struggle to help people create passive income and why infinite banking can be a superior strategy.
- Importance of Learning Financial Skills
Understand the necessity of acquiring skills to create passive income through business and real estate. Cameron and Anthony emphasize learning these skills early to ensure financial freedom.
- Flaws in Traditional Financial Planning
Highlight the key flaws in traditional financial planning. Learn how these plans create dependent investors who lack the critical financial knowledge to thrive independently.
- Lack of Financial Education
Uncover the critical deficiency in traditional financial advice – the lack of proper financial education. Learn why this educational gap leads to financial missteps and missed opportunities.
- Explanation of Infinite Banking
Gain a comprehensive overview of infinite banking. Understand it as a cash management strategy focused on where to store capital, not just an investment. Learn how it allows for continuous compound interest and financial independence through specially designed life insurance policies.
Fun facts that were revealed in the episode:
- Career Switch:
Anthony Faso transitioned from being a CPA and army veteran to specializing in infinite banking and real estate investing.
- 401(k) Liquidation:
Anthony Faso liquidated his 401(k) to invest in a whole life insurance policy, illustrating his commitment to alternative financial strategies.
- Rich Dad Influence:
Many of Anthony and Cameron’s clients have read “Rich Dad Poor Dad” and aim to achieve financial success by having passive income surpass their monthly expenses.
Timestamps:
00:01 – Raising Private Money Without Asking For It
05:07 – The Discovery Of Infinite Banking.
06:36 – People Want Income, Passive And Immediate.
15:26 – Bank Cash-Safe, Liquid, Asset Protected, Compounds.
16:33 – Encourage Clients To Store Money In Policy.
19:55 – Benefits Of Infinite Banking For Tax-Free Retirement
23:13 – Comparing Returns: Traditional Banking vs Infinite Banking.
24:38 – Connect with Anthony Faso & Cameron Christiansen:
https://infinitewealthconsultants.com/RaisingPrivateMoney/
27:07 – 401k and Government Credit Plans Have Drawbacks.
30:10 – 401k Liquidated To Start A Policy, Consider Careful Planning.
32:55 – Real Estate Investment: Words Savings, Investing, Speculating.
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Financial Freedom Simplified: Infinite Wealth Through Private Money and Real Estate
Jay Conner [00:00:01]:
Welcome to another amazing episode, Raising Private Money. I’m Jay Conner, your host, also known as the Private Money Authority. This is the show where we talk about raising private money without ever having to ask for money. Well, I was a guest recently on a podcast and I was just so impressed with the host of this podcast. They talked about infinite wealth and infinite banking. I wanted to invite them to come along. And so that’s who I’ve got here today. It’s like, how can you save a lot of money on taxes? How can you combine the infinite wealth, strategy along with private funds? Well, one of my guests is the founder, or both of them are the founders of this company, but one of my guests, was working at one of the largest accounting firms.
Jay Conner [00:00:51]:
He served as the CFO of a chain of restaurants. But after the 2,008 debacles and recession, he realized that the solution to financial freedom would never be found in the latest and traditional Wall Street-created financial products. Well, his partner and co-founder of the company, was in business for about 8 years as a small business owner, and he came to realize that he was just totally frustrated with investment solutions that were proposed by traditional financial advisors. Well, this led him to discover infinite banking and combine that with real estate investing. In just a moment, you’re going to be meeting some of my good friends and special guests, Cameron Christensen and Anthony Faso, right after this.
Narrator [00:01:45]:
If you’re a real estate investor and are wondering how to raise and leverage private money to make more profit on every deal, then you’re in the right place. On raising private money, we’ll speak with new and seasoned investors to dissect deals and extract the best tips and strategies to help you get the money because the money comes first. Now here’s your host, Jay Conner.
Jay Conner [00:02:14]:
Well, hello there, Cameron, and hello, Anthony. Welcome to the show.
Anthony Faso [00:02:19]:
We are glad to be on, and we’re pumped like that intro and then that little trailer. That’s that’s awesome.
Cameron Christiansen [00:02:25]:
That got me going, Jay. We’re happy to be here, man. Thanks for having us.
Jay Conner [00:02:28]:
Yes. Well, I enjoyed being on your podcast, which, by the way, to my audience, the name of their podcast that you’d want to check out and follow is called the Infinite Wealth Podcast, Infinite Wealth Podcast. And, these 2 guys have just got, has got a wealth load of information and wisdom to share with you. And so we’re going to be talking about the infinite, banking principles or the infinite banking method. We’re going to be talking about in this show how to combine the private money strategy of paying all cash, using other people’s money to invest in real estate, and then how that can be combined into the infinite wealth strategy. Before we dive in though, Anthony, you go first and then Cameron, Just tell us just a little bit more about your backgrounds since I just sort of touched the hem of it.
Anthony Faso [00:03:19]:
You know, the the only thing that I would add on there, is I did go to I I did serve in the US Army. And then you picked up the rest of my career. But I think the most important thing is, as a CPA kinda in, like, the system, I noticed the advice, to be honest, I was given and people were getting in from financial planners and Wall Street. Just was not right. That is not what’s going to get us there. And then that’s when I got exposed to Rich Dad, Poor Dad, and the infinite banking concept. But the difference is, I mean, I had read Rich Dad Poor Dad, years before. But the difference is this time, I put it into action.
Anthony Faso [00:04:04]:
So you’re just reading it from the shelf. I read it and and and and and and and and put it into action. And then that’s when we discovered the infinite banking concept, and then I had my CPA firm, and I had, you know, teaching infinite banking, and I had my family somewhere here on the side. So really easy choice. I sold my CPA firm and then focused on infinite banking full-time. That is all we do is teach people how to incorporate an infinite banking system to help them create more passive income than their monthly expenses.
Cameron Christiansen [00:04:40]:
Nice. Yeah. I’ll jump in there, Jay, is that, yeah? I appreciate the intro that you that you gave there. Again, what I would add is, probably just the how I came across infinite banking. It was a complete happenstance. Small business owner, I was looking for opportunities to put money away. And every opportunity or every option that was presented to me by traditional advisors made zero sense to me whatsoever.
Cameron Christiansen [00:05:07]:
And I could not believe I was late twenties when I was doing this. I could not believe that people were putting money away until they were 59 and a half and not having access to their funds. That just seemed ridiculous to me, to be honest. And so I didn’t do anything. I said on cash, for many years, and, it wasn’t until I came across Infinite Banking. But what I wanted to share with the listeners was how I came across it my wife and I were buying our house and I sat across from our broker and I asked him just from the pure grace of God if he had the good book for a young couple. And he gave me this weird look and he reached back on his desk and he handed me this book and he goes If I had read this when I was your age, it would have been the difference of 1,000,000 dollars. And I went home and I read that book the first night I read it three times.
Cameron Christiansen [00:05:51]:
And to be honest with you, Jay, I got pissed off Because in that book, on page 44, 45, it lays out some of the things that I was doing incorrectly. And so that’s how I got started. From that day forward, I’ve been running down this infinite banking road trying to learn as much as I can and then sharing it with people. And so I’ve been in this space for 15 years and, 15 years and one day longer than Anthony. So, yeah, Anthony and I partnered 5 years ago in infinite wealth. And here we are now.
Jay Conner [00:06:17]:
That’s wonderful. Now you guys talk about three reasons that typical financial advice is just flat-out wrong, bad advice, and leading people down the wrong direction. And tell us what those reasons are.
Cameron Christiansen [00:06:36]:
Yeah. I’ll hit the first one here. But the first one is that when you talk to people and you sit down with them and you talk about what their goals are if you keep asking questions, their goals are about right now here in the present. And typically what they’re trying to do is they’re trying to create as much income as possible. And specifically, they want to go do things that, don’t require them to go to work. And so they’re trying to create as much passive income as they possibly can. And, Jay, if you look at all the retirement vehicles that are out there, it is nearly impossible to create passive income from those types of vehicles that are out there right now. And so the problem that most people have is they’re delaying, right, this idea of creating income.
Cameron Christiansen [00:07:20]:
And so, it’s a skill that someone has to develop. And what happens is people delay that until they’re in their late fifties or early sixties, and it’s a skill that nobody knows how to do. And so one of the things that we urge clients to do is to go learn that skill, is to learn how to create passive income now today through business and real estate. So that’s one of them.
Anthony Faso [00:07:42]:
I would tell you a second one is that I say that it creates lemmings. Meaning, like, the old, story of these rodents that will just they would follow the leader literally off a cliff. And, honestly, that’s what we feel using typical financial planning you’re not learning anything. All you’re doing is following your financial planner. And oftentimes, as you see, we will get recessions, and people will fall off, follow their financial planner off a cliff. And the bottom line is they’re not learning anything during the process.
Jay Conner [00:08:22]:
And there was a third reason too. Right?
Cameron Christiansen [00:08:24]:
Yeah. The third reason that I would say is that people aren’t learning anything. Right? Does no education come with a kind of traditional planning at this point? So, if you look at traditional planning now today, somebody will go sit down with an adviser, and the message from that adviser is, give me all your money. You’re not smart enough to do this. And so that’s been the message that people have been given for so long. And if you look at kind of your life, Jay and you look at some of the places that you’ve been successful and maybe some of the places that you have failed, I would bet money that the times in which you failed is when you’ve outsourced that to someone else. And so
Jay Conner [00:09:02]:
Oh, absolutely. That’s why I don’t want to invest in anything unless I understand it myself.
Cameron Christiansen [00:09:06]:
Yeah. I agree with you. Right? But that’s not the message that traditional advice has given people is people they tell people, hey. Give me the money. You’re not smart enough to do this. And I couldn’t disagree more. I think everyone’s more than capable of controlling their financial future.
Jay Conner [00:09:21]:
Well, we’ve said it 4 or 5 times, so we better define it. So please tell the audience what in the world is infinite banking, I. E. How to become your banker?
Anthony Faso [00:09:34]:
Well, I would say in the simplest terms, infinite banking is a cash management strategy. Infinite banking is not an investment. The investments are what you do with your savings. And what we’re focusing on is really where you store your capital. You have to store your capital somewhere. And I know, Jay, what is so great about what you’re teaching people is how to do these investments with really other people’s money. So they’re not using their own. They’re using, they’re using other people’s money.
Anthony Faso [00:10:11]:
So what we would focus on is a couple of areas. For 1, Jay, as I recall, one thing of your strategy is you raise money not just to buy the property, but also to force some improvements.
Jay Conner [00:10:25]:
Not so.
Anthony Faso [00:10:26]:
That cash has to sit somewhere. Also, people are receiving money, as they’re creating income that has to sit somewhere. Right? And, that’s really what we are focused on. Now now, Jay, I’m gonna I’m gonna ask you some questions, if you don’t mind.
Jay Conner [00:10:45]:
Please do.
Anthony Faso [00:10:45]:
Where do you think most of your clients or your students, as they’re raising this money, are sitting it for reserves for either to invest and to improve that property or all? Where are they typically storing that capital?
Jay Conner [00:11:03]:
Well, as far as the timeline goes, when they raise the private money, then they have been told or given a verbal, a verbal from the private lender, the individual saying, hey, I’ve got 250,000. I’ve got a 100,000, etcetera. And so then we, the borrower, the real estate investor, we’re going to say, okay, I’m going to put your money to work for you just as soon as possible. So we don’t borrow the money in words, we don’t have control of the money. We don’t borrow the money until we actually have a deal to use that money to purchase that property and then renovate it.
Anthony Faso [00:11:39]:
Sure. So once you have that property, they pay you the entire 2.50 in this example.
Jay Conner [00:11:46]:
That’s right. Right.
Anthony Faso [00:11:46]:
Part of it is gonna go immediately to purchase it. Part of it is to improve the property. Am I
Jay Conner [00:11:53]:
That’s that’s right.
Anthony Faso [00:11:54]:
Where are your students typically storing that cash?
Jay Conner [00:12:01]:
So the cash and it’s gonna be used pretty quickly. It’s going to be used typically within 90 days. From the time, the deal is funded by the private lender, But, typically, it’s just going to be stored in their operating account, in their business operating account, because it’s out of that business operating account that they’re gonna be paying the general contractor to do the renovation.
Anthony Faso [00:12:23]:
Mhmm. So they’re storing it in a bank. Right? And, typically, because it’s safe and liquid. Mhmm. Right? So they’re not gonna lose the money and they have access to it to send to the contractor. Perfect. Now once we withdraw that money from the bank and deploy it in the asset, how much are we earning in in that account that we took the money from?
Jay Conner [00:12:48]:
That was 0.
Anthony Faso [00:12:49]:
Probably 0. Right? Well, with the and that that’s one of the biggest problems we have with kinda what people are typically doing. They’re using a bank that’s safe and liquid, but the downside is once we withdraw the money, we stop earning we stop earning interest on it. So we break the compound interest curve. Now, Jay, at what point do you want your money to stop compounding? What would you say?
Jay Conner [00:13:18]:
I would say never.
Anthony Faso [00:13:19]:
Okay. Good answer. Good answer. Okay. The problem is, though, Jay, the system most people are using, we’re breaking the compound interest curve every single time. All we do with infinite banking, we just add one extra step to get you that uninterrupted compound interest. Now, Jay, I’m gonna pivot a little bit. Do you use a rewards credit card?
Jay Conner [00:13:43]:
Oh, yes. Mhmm.
Anthony Faso [00:13:45]:
Well, why don’t you just use cash?
Jay Conner [00:13:49]:
Well, I like using other people’s money. And on top of that, I like getting, I like getting, airline miles rewarded back to me.
Anthony Faso [00:14:01]:
Perfect. So, Jay, what I’m hearing is, hey. I’m gonna buy this thing anyway, whatever it is. I’m gonna buy it, but I’m gonna add one extra step, a credit card, because this way, I get some extra bonuses, some miles cashback. If you can understand that, Jay, you can understand the infinite banking concept. Because really, all we’re teaching our clients to do is to add this one extra step to where they store their money and they’re investing. So instead of storing the money in a bank account because it’s safe and liquid, you can also store it in a safe account, probably even safer and just as liquid. And that’s an especially designed whole life insurance policy.
Anthony Faso [00:14:49]:
Now, Jay, if you’re like me, when I first heard this, as soon as I heard my whole life, like alarm bells went off in my head. And this is a very different concept. The way these policies are designed is very different. I like to say they’re not your mama’s whole life policy. Right? Those policies are designed for the death benefit. Our policies are designed for cash value. They’re very liquid and they’re very cash-heavy. And we design it not to maximize the death benefit, but to maximize the cash value.
Anthony Faso [00:15:26]:
The reason why this is a better place to store your cash is because not only is it safe and liquid, but depending on what state you live in, most states have some level of asset protection. So meaning if you get sued, they are not gonna be able to, attach to to your cash. But also the biggest advantage is we can either withdraw the money from our policy just like we would with a bank. But the problem, we’d we’d have the same problems we do with the bank, meaning, breaking the compound interest curve. But we also have the option to leverage against it, Meaning, we take a, we borrow from the insurance company, and the insurance company uses your policy as collateral. So, Jay, we’re still using other people’s money. And the reason why this works is because your money is still compounding during this entire time. It’s still growing just as so we’re never breaking the compound interest curve.
Anthony Faso [00:16:33]:
So what we would encourage our clients to do is to store some of that money. It shouldn’t be all of it, but store that money instead of a bank stored in the policy. And then you’re going to you’re going to need to deploy that money. So you just would you use that money and put it in the asset. When that asset will produce some sort of cash flow or profits from the sale of this asset, you gotta put it somewhere. Instead of putting it back in your operating account, you put it back in the policy. So we’re not changing your cash flow by any means. All we’re doing is instead of using somebody else’s bank, we’re creating our banking system by, using a whole-life policy.
Anthony Faso [00:17:19]:
The benefits of doing that are your money is just as safe as liquid, asset protected, and most importantly, the money is gonna continue to grow and compound even while we’re using it. So we never break the compound interest curve.
Jay Conner [00:17:35]:
So, how accessible is the money? You know, let’s say that I’ve got a deal funded by a private lender. I get enough for the purchase of the property. Also, I get money upfront for the renovation or the rehab of the property. So we use the purchase amount, but then we put over in the, in the policy, we put the overage for the renovation. So let’s say our general contractor is going to give us 3 draw requests during that rehab process. And so I get an invoice that comes from the general contractor. How quickly is the, is the money accessible from the policy to pay the general contractors bill?
Anthony Faso [00:18:17]:
There are a couple of different ways we can set it up. The way that I’ve set mine up is I can wire from my policy on the same day.
Anthony Faso [00:18:26]:
So when I’m ready to deploy, I call up and they will send a wire. And if I do it in the morning, the contractor will have it by lunchtime.
Jay Conner [00:18:37]:
There you go. Well, that’s great. Now, in addition to that, am I tracking when I ask this question? So I’ve either got, I’ve either got the extra cash sitting in my operating account earning nothing, or I put it over there in the policy. You just answered that question. It’s easily and quickly accessible. Is the reason to put it over in the policy and let it sit there until it’s needed because that policy is going to be paying some type of return or rate of return that the bank is not going to be paying?
Cameron Christiansen [00:19:14]:
That’s correct, Jay. Yep. So that’s one of the biggest benefits. Anthony listed off several of them, but, the biggest reason that we’re doing that is because you can get a greater return on the cash value there. If somebody’s out there researching online, oftentimes, this is probably one of the points that people will either over-represent or under-represent out there on social media. A good round number that we will share with clients is that when you put money in a policy, you should expect it to grow right around 4% tax-free every single year.
Jay Conner [00:19:45]:
Well, the tax-free is, is another incentive as well. If you’re in the if the, value is growing, with no tax effect.
Anthony Faso [00:19:55]:
I didn’t even mention the tax-free, and I’m a recovering CPA. But I mean, there are so many benefits to doing this. But the main one is because some of these benefits may change. Right? But what’s not gonna change by using this is the ability to continue your money to compound. Jay, let’s go a little farther back. Let’s say when you first started learning this system, imagine that this operating account that you had used, what if that continued to compound, continued to grow during this entire time? You would end up having more money, which means you can buy more assets. And, also, what a lot of our clients will do, just like I like to use the analogy of the rewards credit card, We’re going to do we’re gonna buy these assets anyways. But by using infinite banking and never breaking the compound interest curve, when we are winding down, and in retirement, we can draw from that and create tax-free cash flow.
Anthony Faso [00:21:07]:
So that’s what I like to say is ours is your instead of getting miles, you’re gonna get tax-free cash flow for buying these the assets you were gonna buy anyways.
Jay Conner [00:21:17]:
So have you all heard you probably have? But have you heard some of your potential clients say, well, I just hear people talking on the street that this infinite banking thing is a scam? Why do, why do some people think that you reckon? Is it just a point of they don’t understand what’s going on?
Cameron Christiansen [00:21:37]:
I’ll jump in there. It is, I mean, we’ve both got an answer for it, but, I was one of those people. I thought it was a complete scam. But the difference that I think was, found the facts as opposed to people’s opinions. So when it comes to whole life insurance, real estate investing, or whatever it is, everybody’s got opinions on it. But specifically in infinite banking, there are a lot of opinions that circulate online. Very difficult to separate fact from opinion when you’re doing that. And so as you go down this road you got get to get good at separating that.
Cameron Christiansen [00:22:10]:
So what I would urge somebody is that if they’re out there and they’re interested in it don’t take my word for it. Don’t take Anthony’s word for it that it works go out there and do your due diligence. Go do your research. We’ve got a bunch of resources on our website. We’re providing those for you. But if somebody’s interested, we’ve got resources where they can go and figure this out on their own if they’d like to.
Anthony Faso [00:22:34]:
Yeah. And, Jay, like you pointed out, this is people need to learn this concept. This is not for everyone. And we have an online course, Jay. And at the end, we’re giving you a link where we will offer free access to our course so they can check it out for themselves. And what what I would add with to what Cameron said, because I’m a skeptic as well. For me, it’s all about the numbers. And so what hit home to me, it wasn’t this theory, oh, I get uninterrupted compound interest or asset protection.
Anthony Faso [00:23:13]:
I need to see the numbers that this will that my family will be better off by doing infinite banking than doing what I was doing before. And so what we will do with our clients as part of our education process, we’re gonna do the math. We will compare numbers that they’re saving, and we’re doing illustrations based on their situation, and we’re gonna do the math. We’re gonna store the keep the money in your operating account, earning nothing, and then buying the asset. And then we’re gonna well, what if we store that same amount of money, but inside one of an infinite banking design policies and bought that same asset? So cash going in and out on both sides is the same. And then we’re gonna look at who has more money at the end of the day, and more importantly, why. And because of the power of compounding, infinite banking will win in the long run every single time.
Anthony Faso [00:24:12]:
So and there, that calculator that I’m talking about is part of is you will have access to it in the online course. So that might be something that we would encourage people to check out for themselves.
Jay Conner [00:24:27]:
Well, just to make sure no one misses out, let’s go ahead and share with the audience, that link and how they can get access to, your free course.
Cameron Christiansen [00:24:38]:
Yeah. Access, the link will be
https://infinitewealthconsultants.com/RaisingPrivateMoney/, and what they’ll find when they go there. It’s a landing page. We’ll ask for your email to give you access to get in there, but we won’t spam you. But once you get into the course, like Anthony alluded to, there’s nothing salesy in there. It’s a whole bunch of case studies. It’s all examples of stuff that’s actually in place. It’s very educational.
Cameron Christiansen [00:25:04]:
So, if you guys are on the fence, go check it out.
Jay Conner [00:25:07]:
Sure. And of course, we’re going to have this URL in the show notes as well. But just to repeat it, it’s www.infinetewealthconsultants.com. That is Anthony and Cameron’s, business, https://infinitewealthconsultants.com/RaisingPrivateMoney/ a couple more questions before, before we call it a wrap. So many people that are working in corporate America, are offered a 401 ks when they are working there on the job or whatever. And so some of our listeners may have 401ks in a, preexisting with a preexisting employer. That’s just still sitting there. They may have a 401 ks in the current employers, a plan administrator.
Jay Conner [00:26:04]:
And so the question is, is there a strategy they could use with those 401ks that could be a better option for them? And a second question about 401ks is whether someone goes to work for an employer. Should they take advantage of the 401k that’s offered?
Anthony Faso [00:26:24]:
Jay, let me ask you some questions. Do you think taxes are going up or down?
Jay Conner [00:26:30]:
Well, I haven’t seen them go down.
Anthony Faso [00:26:32]:
Okay. Alright. Well, me then. They’re not. Do you wanna pay them?
Jay Conner [00:26:39]:
No. I don’t wanna pay them.
Anthony Faso [00:26:40]:
Alright. I’m just making sure. I’m just making sure.
Jay Conner [00:26:42]:
I wanna pay my fair share, so I’m not gonna be out there for me to ride on.
Anthony Faso [00:26:48]:
Now is a dollar worth more today, or will it be worth more tomorrow?
Jay Conner [00:26:53]:
It will be worth less tomorrow.
Anthony Faso [00:26:55]:
Correct. Right. Would you rather pay tax on the seed that you plant in the ground or tax on the harvest that you pull out of that one seed?
Jay Conner [00:27:05]:
I love seeds. I love seeds.
Anthony Faso [00:27:07]:
Right. The problem is, most people when we phrase it like that, answer just like you did. And the problem is putting money in a 401 k or a government credit plan violates all 3 of those. We’re putting money in today, and but we put in a dollar today. Hopefully, we can eventually pull out 5. But now we got the tax deduction on 1, but now we’re paying tax on 5 at a potentially higher rate. And in between all of that time when we didn’t have access to it, we had to borrow money and use money from others from other areas. So the point I’m trying to make, people need to come to their own conclusion as to whether a 401k is something that they wanna do in the long run.
Anthony Faso [00:28:02]:
And I often think when people look at the big picture, a lot of times they will stop contributing to their 401 k.
Cameron Christiansen [00:28:15]:
Now if, Jay, I was gonna add. So is, here’s been my experience over, you know, the last 15 years or so being in the seed is that a lot of people will come to us, and they’ve been they have a w two job. They’ve contributed to their 4 zero one ks for the last 10, 15 years. And the reason they’ve been doing that is because 30 days of them starting whatever industry they’re in their career is HR pulls them in and says, hey. We’ve got a great opportunity for you. And you can start saving in our 4 zero one k plan. And so people start saving, which is great. But the problem with that is that no education comes along with that.
Cameron Christiansen [00:28:50]:
And so people come to us. Right? And they come to us because they’ve been doing this for 10, 15 years. And this uneasiness builds because they have no education. They have no idea how this thing is gonna turn out for them. And they have no idea whether or not they’re on track. And so that uneasiness just kind of builds and they start looking for alternatives. And so really when they come to us, we’re here to provide an alternative to kind of that traditional model of putting money to 4 in a 401k and outsourcing that. So what we’ll help them do is we’ll help them reallocate funds into a policy.
Cameron Christiansen [00:29:24]:
And then based on their skill set, we’ll help them find some opportunities in business and or real estate where they can start creating some income now today instead of waiting until they’re 60 years old.
Cameron Christiansen [00:29:36]:
The other thing that I would add there is that when you educate someone on this, that these options are available to them pretty quickly, they realize that putting money into a 401 k and outsourcing is not the best thing that they can do. And so typically, the first step that they’re gonna do is they’re gonna minimize their 401k contributions from the maximum, and they’ll minimize it down to the match. And so a lot of people are overfunding their 401ks. And that’s usually the first reaction is they start to take control back of their money, putting it into a policy that we just described so they can turn around and go do something else with it.
Anthony Faso [00:30:10]:
And there that is how I started my first policy I took the money out of my because all of my assets were either in my house or my 4 one k. So I liquidated my 401k, and I put that in the policy. Now, again, we’re not recommending anybody to do this. We need to go through some they need to know the pros and cons of what it is that they’re doing, and that’s why we take an educational approach. We never tell people what to do. We just tell them what they can do. A lot of people don’t realize the potential that they have. And the bottom line is, what are your goals? Most of our clients have read Rich Dad Poor Dad, and he defines financial success as your passive income is more than your monthly expenses.
Anthony Faso [00:31:04]:
And if that’s your goal, why are you not putting your money towards your goal?
Jay Conner [00:31:12]:
Excellent question.
Anthony Faso [00:31:13]:
So they need to take some money, learn how to create money themselves just like what you’re doing, Jay. They should take some time, turn off Netflix for a little bit, and Take your course. Learn what it is you’re doing, and that can be their retirement plan. We don’t need a 401 k. That’s a government plan. You need to rely on things for yourself by learning ways to create income, in raising private money is a fantastic way, to do that. Then you sprinkle on infinite banking. You’re gonna be able to enjoy the life that you dreamed of.
Jay Conner [00:31:57]:
Wonderful. Anthony and Cameron, thank you so much for taking the time to join me here on the show. One more time for all the audience, https://infinitewealthconsultants.com/RaisingPrivateMoney/ Anthony and Cameron, final comments as we bring this show to a close.
Anthony Faso [00:32:22]:
If you’re listening to this, you probably have more questions than you do answers. I would suggest you take us up on our offer. In this course, if you listen to IBC 101, run times 55 minutes, That’ll give you a good idea overview of what infinite banking is. And maybe it’s not for you, but at at least you at least you know. But if it is for you, you’re gonna have questions, and we’d like to be there to be the ones to help you answer them and determine if infinite banking is for you or not.
Cameron Christiansen [00:32:55]:
Jay, what I would add in closing is that I’ve said this a few times. Anthony might get sick of me saying this, but, if someone’s in this realm of real estate investing, they need to understand that words are important. And a lot of times in our industry, people will use savings, investing, and speculating interchangeably, and they mean something that’s drastically different. And so my parting quote for you guys would be to go out there and understand what the difference is between those three words. Savings for us is an action verb. Right? It’s a you’re you it’s a verb that you’re doing, an action that you’re doing every single month in putting money away. And that’s where infinite banking would come in. Investing is where you’re doing a level of due diligence before ever making some sort of investment.
Cameron Christiansen [00:33:40]:
There’s a lot of education that goes in before making an investment and speculating is where you’re just throwing money and you’re hoping and praying that it works out for you. And if your listeners were out there, I would urge them to do kind of an audit of what they’re doing with their money and make those 3 categories, saving, investing, and speculating. The far majority of individuals out there are acting, under pure speculation, and we’re urging people to revisit that, look at saving, and then also focus on investing, and making sure that you understand what you’re investing in.
Jay Conner [00:34:15]:
Great advice, guys. Anthony, thank you so much. Cameron, thank you so much. And also thank you for the value that you brought to the course that you’ve made available for free to the audience. And there you have it, my friend. Another amazing episode of Raising Private Money with Jay Conner. I’m the Private Money Authority. Thank you for joining me.
Jay Conner [00:34:33]:
I wish you all the best, and I look forward to seeing you right here on the next episode of Raising Private Money.
Narrator [00:34:42]:
Are you feeling inspired by the knowledge you gained in this episode? Then head over to www.JayConner.com/MoneyGuide. That’s www.JayConner.com/MoneyGuide, and download your free guide that shares seven reasons why private money will skyrocket your real estate investing business right now. Again, that’s www.JayConner.com/MoneyGuide to get your free guide. We’ll see you next time on raising private money with Jay Conner.