Episode Transcript
[00:00:00] Speaker A: Welcome to create wealth through franchising. I'm your host, Kim Daley.
Whether you're a CEO, a military vet, a real estate investor, or simply in career transition and ready to take ownership of your future, with each episode, you're going to learn valuable insights and hear inspiring stories from within the franchise industry.
On that note, my guest stories are their own. And as a franchise consultant, I do not make personal brand endorsements or earnings claims, but I do educate, motivate, and inspire dreams.
Now onto the show.
Welcome back to American Wealth Strategies. I am your host, Kim Daley. And in studio today are two of my colleagues and more importantly, my friends, Jim Oliver, Nick Costco. Welcome to the studios of American Wealth Strategies.
[00:00:58] Speaker B: Thanks for having us, Kim. Excited to be here.
[00:01:01] Speaker C: Yeah, thank you very much, Kim. Always a pleasure to join you.
[00:01:04] Speaker A: This is going to be another inspiring episode to help those of you who are out there trying to figure out another way to invest your money. It may be in a franchise, it may be in self storage. It may be what we're going to talk about today. So Jim and Nick are experts at what we're going to call infinite banking. Maybe that's a new term to many of you out there. It was definitely a new term to me when I met Mister Oliver maybe four or five years ago, and I struggled with it. And to be honest, I still sometimes struggle with the whole concept. So they're here today to really dive into this concept of infinite banking. What is it? Who is it for? How do you use it? Is it safe? They are the experts in my world. So, with that introduction, Jim, why don't you open us up a little bit today, and let's start at the beginning with what is infinite banking?
[00:01:54] Speaker B: Absolutely. So, Kim, somebody's going to be the banker in your life, right? Somebody's going to be the controller of the money. And so it might as well be you. But there's so many people out there, they're going to tell you you're not smart enough, you're not good enough. You don't know what you're doing. You might lose it all. Let somebody else be your banker. They're a professional. They've been educated and trained on banking, how to steal your money from you and go use it to make money and let them do that. You don't want to do that, Kim. Put your money in Wall street and let it die slowly. Don't kill yourself quickly being your own banker and kill all those people. Don't do it. You can't do it. That's what they tell you, there's nothing could be further from the truth is, how do most people make money? Most people make money owning a business or owning real estate. And when you own a business and real estate, there's one thing that you got to have. You got to have banking business revenue might come in all in a few months, every year, right? Depending on what kind of business or franchise that you own. But your bills, like rent, or your employees, they come in like this. So what do we do? We use a bank. So all this really is, is an alternative bank. It's an alternative bank. And people say, well, wait a minute, my bank account is FDIC insured.
Is it? The FDIC is about a little bit more than 1% funded for all of the deposits in the United States. So when you think that you're protected, are you? Maybe not. So this alternative bank you control, which means if you put a million dollars in this infinite banking policy, the insurance company is required by contract to give you a loan of their money while your money stays inside of this tax shelter, growing, guaranteed, tax free every day.
[00:03:58] Speaker C: One thing that, when this came to me, you know this about me. I used to fly big airplanes around the world. So, like, I'm a control freaks. Control freak. Like, I want my hands on the controls. Like, we go flying on vacation, I don't like sitting in the back. I'll do it better, right? So when I got introduced to this, this concept of control was front and center. So the financial world is playing a game. So, well, we don't even know that they're playing a game, and it's really about control. So I'll ask you a couple questions, Kim. How much of your money do they want?
[00:04:34] Speaker A: They want all my money.
[00:04:35] Speaker C: And how long do they want to keep it?
[00:04:37] Speaker A: Oh, forever.
[00:04:38] Speaker C: How much of it do they want to give back to you?
[00:04:40] Speaker A: As little as possible.
[00:04:42] Speaker C: As little as you'll tolerate. So here's the thing. Infinite banking, like the banking industry, Wall street, the government, okay, we're not anti any of that, but I need to understand how the game's being played so that I can win it. Most people think infinite banking, they've heard this, and they immediately go to some tricked out life insurance contract, and they say, I've seen that that's not a good quote, unquote, investment that is almost contributing noise, not unlike the rest of the financial world's noise. Rm. Nelson Nash wrote this brilliant book called becoming your own banker quite a few years ago. And he eloquently said, infinite banking is not about a product. It's about a process. And if we can understand the process of what a bank does, then we can win at that process. It doesn't matter if I'm going to buy a franchise, a real estate deal, start a business, whatever it is, all of that money is going to flow through somebody's bank. And I don't know about you, but I don't own Wells Fargo, I don't own chase. They don't love me so much that they give me chunks of their profits at the end of the year. But my life insurance partner in this does. I become an owner of this financial institution, which gives me unique control and benefits to then go make the investments that I want to make, that provide me cash flow so that then I can do what I want to do when I want to go do it. And that's really between what Jim and I have said kind of encompasses what's going on in this marketplace.
[00:06:20] Speaker A: Okay, so for those of you listening, let's get you deeper into the story. Again, the mindset is we can't think like the rest of the world thinks if we want to do something that the rest of the world isn't doing right, which is getting ahead. You want the american dream, right? You want full control of your time and your money. The conversation doesn't just end with, I'm a business owner now because like these two have said, you have money now from the business. So you're going to put that money where? Back into the stock market? Haven't we had that conversation when we were working together as candidate and consultant, trying to help you get to funding your franchise business, where we talked about money out of your 401K without creating a tax penalty, but putting it into motion, creating velocity with your money. Well, I learned all of that from these two people, from these two amazing humans, right? Jim taught me that four or five years ago. And you know my story, if you follow me, that once I started thinking like these two think within four years, I quote, retired myself. I used to save money in a self employed pension plan, that nice little thing to look at every quarter. I started taking their advice little by little. I'm going to tell you, this conversation isn't one and done, still an ongoing conversation that I have with these people and other people, because it's so contrary to what we're taught and we're so conditioned by those thoughts that it's hard to break free. So don't sit out there and just turn off the episode because it's not what you thought or I like, over here to the right for me. Like, hang with me, because I'm not a crazy person. You follow me? You know, I've led you down some good paths. This is an awesome path. It just takes time to get it. So I'm going to finish the story. In case you don't know my story, I said I retired myself in four years. I used to put money in a self employed pension plan. I don't do that anymore. Why? Because I was saving money. For what? When I'm old, I want my money now. I use that money. So I started thinking like they think. I started doing what these people do. And in four years, I had enough massive income. I had money that I could invest in cash flowing assets that create tax advantage and are building equity for me. And that cash flow created enough cash flow to me annually to cover my fixed expenses without my business. So I now work in my businesses because I want to. Like, that's a fun place to be. And that is the definition of financial freedom, perhaps what we're selling here all day long. So back to these two, Jim, I guess let's toss it back to you. Let's talk about, like, practically how we do this. What does this mean from a very basic level.
[00:09:25] Speaker B: So, and Kim, I love a couple of things. I have to just comment on what you just said, because first of all, the majority has never been right about anything. Okay? So you have to be in the minority, but you have to be educated more than the majority. Right? What you did is you took what this traditional thinking, which was put your money in a SAP and then let it sit there and erode for 20, 30, 40 years, and then hope that you have enough leftover, and then you're going to turn off all of your businesses. Like anybody would ever do that and just hope that this nest egg could last you for the rest of your life. But that was a lie. That Wall street, the government and the banks taught us. They taught us to be slaves, right? And that's what a slave does, is a slave doesn't use their money, let somebody else use their money. And so what we do is we put this money into this specially designed insurance contract and it sits there and it's tax protected. Because we have that money. The insurance company has to give us their money. Now, remember what Nick asked you those questions as far as what large financial institutions do. They want all your money. They want to keep it forever, and they want to give you back as little as possible. But in this scenario, they have to give us their money. So now we have OPM, other people's money. We have use and control of it. We're going to go buy cash flowing assets. So let's just use a franchise. We're going to go buy a franchise. Or how many of our franchises we're going to buy. It's going to be franchise project number one. We buy that franchise, we get it up and running, and it's going to cash flow. So where should we put that cash flow? Somebody else's bank or back into our bank? So when we put that into our bank, we're in control of it. Meaning anytime we want to, we can collateralize it and get the insurance company's money. To go do what? Buy more franchises. So now franchise project number two comes in and we get it up and running and it cash flows. Well, we didn't lose the cash flow from franchise project number one. So we have franchise project number one, franchise project number two. Both cash flow and it's rinse and repeat and build it in Tulle. That cash flow, like you, exceeds your standard of living and exceeds your ideal standard of living. Right? Because let's be honest, we want what we want. We want to do what we want to do when we want to do. We want to have the nice things. And sometimes in life, you have to say, compared to what? Now, what I just said is pretty simple. Simplicity is elusive at times, though. Simple doesn't mean easy. But compared to what? Compared to I go work, whether it's in my business, owning franchises, real estate, whatever it is. And then I put that money in Wall street and I let my broker make money. I let the money managers make money, the salespeople make money. And then I have all these fees, and the government makes money. It all flows through the bank. So they make money. They take my money and go make money. I'm being fed on. I'm the host of a parasite. Those three parasites, right? Okay, I'm a slave.
Or I can learn how to be my own banker and control the banking function of my life, and I can be the one that's going to profit from it and have control and use of other people's money. Not the opposite.
[00:12:54] Speaker A: Hey, daily Coach fans, if you're loving this episode, please do me a quick favor and leave me a five star rating and a short review. Your feedback fuels my growth and rankings and shows others that this podcast is valuable. Now back to the show.
Love it. And by the way, I want to say this. Nick mentioned R. Nelson Nash's book, but I want to mention Jim Oliver's book because Jim and Nick, the book is called make bank without the bank. So that's another option if you're looking for more of a story around like what is infinite banking and you're just trying to get up that the curve of education.
[00:13:35] Speaker C: Yeah, here's the thing. I worked for a Fortune 50 company. I had a defined benefit plan. I had to define contribution plan that I didn't have to contribute to. I mean I had it kind of made. I had the all american dream. I mean there's only like 3000 guys with that job and there's probably 30,000 resumes sitting on the HR's desk for that job. But the reality of it was once I read Nelson's book and kind of put some other pieces together of things I was observing, I just realized I was a well paid slave. And once you realize you're a slave there's nobody in their right mind that wants to stay there. Now you can stick your head in the sand and try to deny that. And unfortunately that's what people do because they don't know how they would get out. So you got to understand what do you want, why do you want it? And then go find somebody that has what you want belly up to them and find the path out. I was blessed enough to have Nelson's book and be connected to Jim and then a host of others that have shown me the path out. And I don't fly anymore. It's been three and a half years since I've been in an airplane and I don't even sort of miss it. I love the passion of pursuing cash flow through various ventures and partnerships and having an impact that'll be multi generational for my family. And so, you know, it's that freedom that you can find by being willing to be 100% wrong. Most people are entirely too married to their current paradigm and that's the sad part, because if you were to objectively step back, I'd be willing to bet that most people would never admit, would never truly be able to say they're happy and full of joy. But if you can do that, then you have to say, wait a second, what is that other path and how do I get there? For me it started with that realization and then it's, hey, what's this game being played? I can tell you within 2 where I was standing the first time Jim and I talked on the phone. He asked me how much did I make. I told him, he asked about my benefits stuff. He asked why was I on the phone? With him. And then he asked me these couple questions, and he said, would you rather pay tax on the seed or the harvest? And I said, well, I'd rather pay tax on the seed. The little number. Do you think the dollars in your pocket are worth more today or in the future? And I said, well, they're worth more today. And he said, do you think your taxes are going up or down in the future? And I was like, well, of course they're going up. And he said, well, why would you ever want to put money into a qualified plan? And I was like, great point. Like, you don't have to convince me. I'm just trying to figure out the answers. Right? I loved this follow on question that I wound up hearing. He said, listen, would you rather have all the money you've made in Wall street or all the money you've paid to other people in interest?
And it went hand in hand with what Nelson was saying. What's greater, your need for death benefit or your need for finance? And, of course, it's your need for finance. So, at the time I was interviewing financial advisors, like, this was like, this confluence of all these different paths all kind of happened at one time. And I remember sitting there talking to these money babysitters, hey, you're a good dude. I'll have a bourbon with you. I'll play golf with you. But I'm pretty sure your stick is for your benefit, not mine. But I just didn't know how to solve it. I did not know the unseen. And so this all came together, and it made me go. If my biggest problem in life is that I finance everything that I buy, and I have this massive need for finance, why isn't this joker on the other side of the table talking to me about solving that problem? He just wants control of my money. He wants me to go be a good industrial slave, fly that airplane, contribute all this money to an account that he gets paid to babysit, not make it grow. He wants to give me and show me enough growth so that I don't move my money pool to somebody else that gives me a better, you know, empty promise. Never did. He taught me about solving the real problem that's out there. And I think if people can step back and be honest with themselves in the mirror, David Goggins, you know, he refers it to the accountability mirror. Like, be real naked and truthful with yourself in the mirror. They'll come to the same conclusion. Anybody listening? You don't have to admit it to anyone else, but then challenge yourself to go find the solution. Infinite banking, it's not anything magical. It's the antithesis of a get rich quick scheme. It's not an investment. It's a place to store your money so then you can go build financial freedom in an uncommon way.
[00:18:05] Speaker A: Amazing. I don't even know, like, what to say. The reason that was so inspiring to me is, like, I put myself in the position of the listener. I'm still the listener, right? I'm still absorbing the thoughts about how this actually works, even though, like, I know the benefit of how it works. Again, it's so unconventional. And I know that people out there, I know, look, when they come to me and I know their thoughts about franchising, and I have to help them do what you just said, nick, which was everything you thought you knew, it's kind of wrong. And I'm going to teach you what's right. Like, I'm the expert. I know that. And I had that confidence in franchising, and I know that you and Jim have that confidence in infinite banking. And you being like, what we teach people, it's not something we just teach, it's something we live. Right. That's why people buy franchises through me, because I explain it from the level of, I'm the franchisee, just like you. I understand your thoughts and I understand the curve you have to go through. And that was so inspiring is because you just took people through your own curve and that makes it so relatable. Like, thank you so much. That was beautiful. All right. I'm getting bought into this infinite banking. So where do I begin? What does that mean? How much money do I need to open? Or what are the qualifiers? Just take us a little more deeper into, like, getting started. If I was going to tiptoe into the water, where does that conversation begin?
[00:19:40] Speaker B: Again, it's not an investment. Right. And most people invest in 401 ks, iras, mutual funds, this kind of stuff. They don't understand them. Okay. So what we want you to do is we want to go the opposite. We want you to learn about this before you invest. How much you understand? It will determine how much money you put in, obviously, how much money you have. And some people start with a few thousand dollars a year, and some people start with a few million dollars a year. We don't know how big your bank should be, and we don't tell people how much to start with. But here's the one reality is, regardless of where you start, you will do more and more and more and more. Because ultimately, don't you want all of your money going through your banking system, and none of it going through a banking system that somebody else controls. And how much of your money do you want eroding, dying every day in Wall street, in the banks. Because what a bank does is they take your deposit. You know, when you deposit money at the bank, Kim, is that an asset or a liability to the bank? It's a liability because the bank has to give you that money back whenever you want it. They haven't done anything to make any money to pay for the buildings, to pay for the employees, to pay for any of that. Okay, so it's a liability. But how do they make it an asset?
They loan it out to a borrower, right? Because they know the borrower is going to pay them interest, and then they're going to pay you as little interest as you'll accept and keep your money there. Okay, so this is where the bank kills it. It's something that we can do, too. But the bank, let's say you put ten grand in the bank, and based on bank of America in 2016. Now, why 2016? Because we just picked everything cyclical. So we just picked a year. They would have paid you 0.2% on that deposit. That's dollar 20.
Their average loan paid them their interest income. On their balance sheet, it's all public record, 5.2%. Okay? So you say to yourself, well, wait a minute. So they made $520. They paid me 20. That's not that big of a deal. That's only $500. That's a consumer way to look at it. But how does a business work, Kim? A business is how much money it costs you to run the business, how much you make, and you divide your cost into your profit. Now, if you divide $20, that's what you made into their $520, what they made, you'll see that it goes 26 times.
That means the bank made 26 times more than you. 2600% profit margin. Now, you could sell franchises all day long if you could have promised that, right? But think about it. They did that with your money. They took no risk, they put no money in the deal.
It was all your money, and they made 26 times more than you with your money.
[00:22:40] Speaker A: It's crazy when you say it like that. It's like, oh, my God, it makes you so mad. Like, why don't they teach us this? They don't want us to know. They want us to be blind.
[00:22:48] Speaker B: If they taught us this, what would we do? So think about this, Kim. When you own a business, like a franchise, okay, and the government, the bases our money, meaning they print so much money that the money that's in our pockets goes down in value. What happens to our assets? Like a business, your business goes up in value. Your instruments go down in value. So that means your bank account, your Wall street accounts, they go down in value. Ask the instruments. Assets go up in value. You know, why is if I run a franchise, let's just say, for instance, I have a fitness franchise and I'm charging somebody $50. I'm just making all these numbers up. By the way, is $50 a month to come be part of my franchise. And then they take classes, and it's money on top of that. And the government keeps debasing our money, meaning it goes down in value. So I say, hey, sorry, there's going to be a rate increase from $50 a month to $60 a month. And each class, instead of being $20, is going to be $25. Guess what? I just kept up with inflation. I'm in control. If I have my money sitting in wall street, and all of those dollars are going down in value every single day because of inflation, where's the control? Not with me.
[00:24:00] Speaker A: Crazy. So where do people find you? How do they learn more about this?
[00:24:05] Speaker C: So the easiest way is to go to createtailwind.com dot. You can click on the contact us button. We're happy to communicate with you. Have a call, 1520 minutes call just to see how we can to best serve you. If you want to jump right to our training courses and whatnot, go to community dot createtailwind.com and you'll find we have our own online community. You can download our app in your app store. It just create tailwind. All one word. And what we would direct you to do is just watch. What is Ibc? You get a 10,000 foot view of what this looks like. And we've been saying this for years. We've been doing that presentation for a decade now. And at the end of it, you'll know whether or not you want to keep learning or not. And the one thing you'll get from us is 100% no hassle guarantee. If you say, hey, cute idea, guys, but that's not for me. You won't hear from us anymore. But if you want to keep learning, we'll keep guiding you along the way so that you know without a shadow of a doubt whether infinite banking is for you or not for you. And if you decide it is for you, we'll help you land that airplane, implement it, and then coach you for life.
[00:25:07] Speaker A: I love that community dot createtailwind.com. and you know, I want to just say this. The reason there's a community is the same reason that when you invest in a business as a franchisee, you want a community because you need to be surrounded by like minded people. Once you start thinking different than all the people around you, you can't go to the people around you with questions, concerns, fears, doubts, excitement, even over what you're doing. You need to surround yourself with like minded people in order to keep growing in that new thought. And that's why community dot createtailwind.com is the place to begin your journey thinking about infinite banking. Jim and Nick, thank you so much for being my friends and my mentors, but my special guest here today on american wealth strategies.
[00:25:59] Speaker C: Thank you, Kim.
[00:26:00] Speaker A: You guys are the best. Thank you so much everybody for listening for this episode. I hope that you have now found one more strategy to help you build your american wealth dream.
You can find more content just like this on my YouTube channel at KimDaily TV. And if you're inspired to take the next step to explore franchises matched to you, please email me right now at inquireimdaily tv. That's inquireyimdaily tv.
