Wendy Sweet and Bill Fairman are joined by Chris MIles. They talk about the best methods for investing for cashflow. Discover how to use Whole Life Insurance for wealth creation. Earn tax-free compound interest income.
Chris Miles, the Cash Flow Expert and Anti-Financial Advisor, is a leading authority teaching entrepreneurs and professionals how to get their money working for them TODAY! He’s an author, podcast host of the Chris Miles Money Show, has been featured in US News, CNN Money, EOFire, and has a proven reputation with his company, Money Ripples (http://www.moneyripples.com/) getting his clients fast, life-altering financial results. In fact, his personal clients have increased their cash flow by over $100 Million in the last 10 years!
Carolina Capital is a hard money lender serving the needs of the “Real Estate Investor” and the "Small Builder" borrower who is striving to build wealth and generate income for themselves and their families. We offer “hard money rehab loans” and "Ground up Construction Loans" for investors only in NC, SC, GA, VA and TN (some areas of FL, as well).
As part of our business practices, we also serve as consultants for investors guiding them to network with other investors and educating them in locating and structuring transactions. Rarely, if ever, will you find a hard money lender willing to invest in your success like Carolina Capital Management.
Hi everyone! Bill Fairman, Wendy Sweet here, thank you so
much for plugging into our show this week. So in a previous episode we had
discussed tax advantage, ways to invest in real estate. So most of what we were
talking about was self directed IRAs, solo 401Ks,
much for plugging into our show this week. So in a previous episode we had
discussed tax advantage, ways to invest in real estate. So most of what we were
talking about was self directed IRAs, solo 401Ks,
Roth accounts. We were also mentioned some Coverdale, what
is the other one? Insurance savings. Health insurance plans, savings plans. But
there was one more that I wanted to cover and it is called a whole life policy.
And it is not very many people know about it.
is the other one? Insurance savings. Health insurance plans, savings plans. But
there was one more that I wanted to cover and it is called a whole life policy.
And it is not very many people know about it.
Well that, I want to say something really quick before you
go into this, because when I remember when bill first brought up this whole
life policy thing to me, and you might have the same opinion that I had in the
beginning, which was "Everybody knows that life insurance does not
work". If there is a scam out there, it's "term and the only way to
go" and "you are putting money in a pit". And, and after talking
to our next guest, I mean he totally changed my opinion because they have got a
really good way to work it, right?
go into this, because when I remember when bill first brought up this whole
life policy thing to me, and you might have the same opinion that I had in the
beginning, which was "Everybody knows that life insurance does not
work". If there is a scam out there, it's "term and the only way to
go" and "you are putting money in a pit". And, and after talking
to our next guest, I mean he totally changed my opinion because they have got a
really good way to work it, right?
Well yeah and most money managers will tell you that
insurance policies are for insurance and not investing, savings for retirement
or for financial planners and the stock market and real estate, because most
insurance companies are investing conservatively and you are not going to get
that return and you are just better off taking that extra that you had paid for
the premium for the whole life that is going towards the savings and invest
that in the stock market. You would be better off, but they do not tell you
about the added benefits to this and there is only a few companies out there, a
nationwide that will do the type of whole life policy. and we're in with one.
You can actually add to the cash bag. And the other thing was it takes you a
long time to get a cash back. Anyway, without further ado, our friend Chris
miles, he is a financial advisor by trade anyway, not to mention,
insurance policies are for insurance and not investing, savings for retirement
or for financial planners and the stock market and real estate, because most
insurance companies are investing conservatively and you are not going to get
that return and you are just better off taking that extra that you had paid for
the premium for the whole life that is going towards the savings and invest
that in the stock market. You would be better off, but they do not tell you
about the added benefits to this and there is only a few companies out there, a
nationwide that will do the type of whole life policy. and we're in with one.
You can actually add to the cash bag. And the other thing was it takes you a
long time to get a cash back. Anyway, without further ado, our friend Chris
miles, he is a financial advisor by trade anyway, not to mention,
but he does not like to admit that does he.
He is the Anti-money.
that is right.
And not only that, he is a pretty good dancer. Last time
we got together for an event, he made everybody in the audience get up and
practice some dance. So Chris, thank you so much for doing this my friend.
we got together for an event, he made everybody in the audience get up and
practice some dance. So Chris, thank you so much for doing this my friend.
Well thanks for that awesome intro.
Chris. Give us a little kind of a holistic look at the
plan that we were talking about, about the whole life policy where you can
actually force early cash value on it and you know how that works cause we
forced appreciation on real estate, by upgrading it. So it kind of reminds me
of that.
plan that we were talking about, about the whole life policy where you can
actually force early cash value on it and you know how that works cause we
forced appreciation on real estate, by upgrading it. So it kind of reminds me
of that.
Let me kind of jump in really quick about how I came about
to be that way because I was kind of like Wendy too. I actually was totally
against whole life. Like I started out 18 years ago as the mainstream financial
advisor, I did that for four years. But the thing is, and this is why it is so
crucial, what people are listening to with you, what you guys do with your fund
and everything else is that the stock market does not return the way they say
it does there is average and then there is actual returns, right? And the
actual return the stock market.
to be that way because I was kind of like Wendy too. I actually was totally
against whole life. Like I started out 18 years ago as the mainstream financial
advisor, I did that for four years. But the thing is, and this is why it is so
crucial, what people are listening to with you, what you guys do with your fund
and everything else is that the stock market does not return the way they say
it does there is average and then there is actual returns, right? And the
actual return the stock market.
If you look at the last 30 years is only seven and a half
percent, that is if you put that in the calculator, you would actually get the
right number, not 10 or 12 and on top of that, cashflow sucks, right? So it is
not a good cashflow play anyways. So when you combine all that together, I
realized about 2006 that I was really just a salesman in a suit and I was
selling crap. It does not work. And by me doing the opposite of that advice by
actually investing for cashflow and like the things you guys talk about, I was
actually able to retire when nobody else in the financial industry was
retiring. Right. And I think that is a key thing to understand. That is why I
became an anti-financial advisor right later on because people, of course I was
like, "I will never teach you about money again".
percent, that is if you put that in the calculator, you would actually get the
right number, not 10 or 12 and on top of that, cashflow sucks, right? So it is
not a good cashflow play anyways. So when you combine all that together, I
realized about 2006 that I was really just a salesman in a suit and I was
selling crap. It does not work. And by me doing the opposite of that advice by
actually investing for cashflow and like the things you guys talk about, I was
actually able to retire when nobody else in the financial industry was
retiring. Right. And I think that is a key thing to understand. That is why I
became an anti-financial advisor right later on because people, of course I was
like, "I will never teach you about money again".
"I will never be a financial advisor". And then
people were like, but how did you do it? Right? And that is kind of what pulled
me out by 2007 and such. And, and around that same time I met a lot of real
estate investors in different millionaires and they're the ones that are
saying, Hey, whole life is awesome. I'm like, "What are you talking
about?" I was always told that whole life sucks. Like you get like maybe a
one or 2% rate of return. I do better just buying term and investing in the
market. That is kind of what I taught before, right? And they are like, no, no,
no, it is so much bigger than that. Like, and they were even just talking about
like how the death benefit gives you permission to spend money and stuff. But
over the years I started realized, wait a minute, if I come from an investor
perspective, I want cash now.
people were like, but how did you do it? Right? And that is kind of what pulled
me out by 2007 and such. And, and around that same time I met a lot of real
estate investors in different millionaires and they're the ones that are
saying, Hey, whole life is awesome. I'm like, "What are you talking
about?" I was always told that whole life sucks. Like you get like maybe a
one or 2% rate of return. I do better just buying term and investing in the
market. That is kind of what I taught before, right? And they are like, no, no,
no, it is so much bigger than that. Like, and they were even just talking about
like how the death benefit gives you permission to spend money and stuff. But
over the years I started realized, wait a minute, if I come from an investor
perspective, I want cash now.
I want as much cash as possible. I want as little going to
cost as possible. I want leverage, right? I want to do that. And that's what I
found out is that really create this really tax-free supercharged savings
account right? Now same thing that people do when they take money out of their
savings and they go and invest it and then they hope to get an income back. So
if they go into your guys' fund, it kicks back a return. They get their monthly
payment or or quarterly, right dividends or whatever. Then when they get that
return, they are like, cool, I just made some cashflow and they will put it
right back into savings to try to rebuild that savings back up. But what we do
with the life insurance, we do the same thing. There are some insurance cost
fishing in the beginning, but if we can minimize those costs where most of your
money is all going into cash, so you can use this tax free savings account that
earns, at least 4% or 5% tax free average returns, right?
cost as possible. I want leverage, right? I want to do that. And that's what I
found out is that really create this really tax-free supercharged savings
account right? Now same thing that people do when they take money out of their
savings and they go and invest it and then they hope to get an income back. So
if they go into your guys' fund, it kicks back a return. They get their monthly
payment or or quarterly, right dividends or whatever. Then when they get that
return, they are like, cool, I just made some cashflow and they will put it
right back into savings to try to rebuild that savings back up. But what we do
with the life insurance, we do the same thing. There are some insurance cost
fishing in the beginning, but if we can minimize those costs where most of your
money is all going into cash, so you can use this tax free savings account that
earns, at least 4% or 5% tax free average returns, right?
That is if you do nothing with it, but then you can take
that money. You can get a line of credit from the, a private line of credit
from the insurance company. Use that money to invest. You could take that
money, you get it from cash flow, pay in towards the line of credit. And what
happens is because you have got all that cash still sitting there, cause you
did not deplete the cash by withdrawing all the money out, now the cash is in
there earning compound tax free interest that is growing while you are also
getting the cashflow, paying that loan back. What happens is almost like would
you use the Heloc, it is like a Heloc that actually pays you interest. Right.
And what ends up happening is now you have money growing here tax-free. And
because the cash will come through, you are still going to cashflow from the
investment. You end up making more money than you would just using a savings
account. Just, investing, refilling up the savings, back up, investing again
and refilling it back up. You create this like really faster version of an
income snowball.
that money. You can get a line of credit from the, a private line of credit
from the insurance company. Use that money to invest. You could take that
money, you get it from cash flow, pay in towards the line of credit. And what
happens is because you have got all that cash still sitting there, cause you
did not deplete the cash by withdrawing all the money out, now the cash is in
there earning compound tax free interest that is growing while you are also
getting the cashflow, paying that loan back. What happens is almost like would
you use the Heloc, it is like a Heloc that actually pays you interest. Right.
And what ends up happening is now you have money growing here tax-free. And
because the cash will come through, you are still going to cashflow from the
investment. You end up making more money than you would just using a savings
account. Just, investing, refilling up the savings, back up, investing again
and refilling it back up. You create this like really faster version of an
income snowball.
So that gives you an opportunity to do one or two things.
You can take the cash flow. The difference between with own payments are and
what you are making in the outside investment. Right?
You can take the cash flow. The difference between with own payments are and
what you are making in the outside investment. Right?
Right.
You think that is income or some sort of monthly payments
if you will. Or you can actually take all the earnings, pay down the line, the
payments on the line, and take the profits and put it into your cash value
policy. That money, obviously there is a tax of all event on that part that you
have earned outside of the policy, but you are taking those proceeds and you
are adding it to your balance and you are allowing that to continue to compound
and grow over time. So you are basically compounding the compounding.
if you will. Or you can actually take all the earnings, pay down the line, the
payments on the line, and take the profits and put it into your cash value
policy. That money, obviously there is a tax of all event on that part that you
have earned outside of the policy, but you are taking those proceeds and you
are adding it to your balance and you are allowing that to continue to compound
and grow over time. So you are basically compounding the compounding.
Does that make sense?
So if you do not need it as income, you can just continue
to add it to your balance in there, right?
to add it to your balance in there, right?
You are getting two returns in the same time, right. With
the same money, you are making money in two places at the same time. Right. And
that is basically what is happening. Kind of give you an example, like for
example, your fund right now, like is it, how often does it pay out?
the same money, you are making money in two places at the same time. Right. And
that is basically what is happening. Kind of give you an example, like for
example, your fund right now, like is it, how often does it pay out?
Quarterly.
It is quarterly. Right? Okay. that is what I thought. So
obviously if you are getting money monthly, quarterly, somebody puts in a
hundred grand in your fund, right? They're going to make about what is that
1500 bucks a quarter? Something like that. So, 6,000 a year, you could take
that 6,000 a year, put a Ray back in, and pay down towards that line of credit.
Here is the cool thing, unlike a home equity line of credit, right? Where if
you were to do that same thing now before you pay your first quarterly payment,
they got to pay a couple of monthly payments to the bank. But if you do it the
life insurance, there are no monthly payments. So you can borrow, you can pay
it back. However, whenever you want, the deadline for paying back the loan is
your death.
obviously if you are getting money monthly, quarterly, somebody puts in a
hundred grand in your fund, right? They're going to make about what is that
1500 bucks a quarter? Something like that. So, 6,000 a year, you could take
that 6,000 a year, put a Ray back in, and pay down towards that line of credit.
Here is the cool thing, unlike a home equity line of credit, right? Where if
you were to do that same thing now before you pay your first quarterly payment,
they got to pay a couple of monthly payments to the bank. But if you do it the
life insurance, there are no monthly payments. So you can borrow, you can pay
it back. However, whenever you want, the deadline for paying back the loan is
your death.
that is the balloon payment, right? I mean, so it is very
flexible. You can pay it however you want, but the way to make it work for
years time you are talking about where you make money in two places is, Hey, if
I'm making money over here, it's more than what they're charging me. And
interest over here, I can then go and start paying back towards this line of
credit that they have freeing up the cash to invest again as well. And now you
are making more money because that money is in there compounding. Say it was a
hundred grand, they put in, say you had 200,000, that policy, you take out a
hundred grand. If you just withdraw from a bank, you lose that ability to earn
interest on a hundred grand that you just pulled out. But here are the full 200
grand still in there.
flexible. You can pay it however you want, but the way to make it work for
years time you are talking about where you make money in two places is, Hey, if
I'm making money over here, it's more than what they're charging me. And
interest over here, I can then go and start paying back towards this line of
credit that they have freeing up the cash to invest again as well. And now you
are making more money because that money is in there compounding. Say it was a
hundred grand, they put in, say you had 200,000, that policy, you take out a
hundred grand. If you just withdraw from a bank, you lose that ability to earn
interest on a hundred grand that you just pulled out. But here are the full 200
grand still in there.
You get the a hundred grand kicking off that money that
you are putting right back in, building that cash back up again and you are
earning that extra return. So it is awesome. And the nice thing is too, like it
is very, it's just the same tax treatment is like a Roth IRA. Where you put in
after tax dollars, it grows tax-free and you can access it tax-free. Right now
the difference though is that unlike a Roth where your capital like six seven
grand a year, you can dump in, I have people dump in like over a half million a
year, like they end up as much as they want and there is no 59 and a half
rolls. You don't even have to wait until you are 59 and a half to touch the
money and you get your hand slapped with that stupid penalty, I can access that
money right now. Like I do not have to wait till then. So for any of my clients
are saying, Hey, I want to retire at 50 or whatever it might be, or 40 or
whatever. Well why would I want to put my money somewhere where they say, Hey,
you can touch it, but not until you are 60. It just does not make sense here.
We can get the money, use it, invested it however we want. there is no
restrictions. It does not have to be like self-directed. So it is pretty cool.
It's pretty flexible in how you use it.
you are putting right back in, building that cash back up again and you are
earning that extra return. So it is awesome. And the nice thing is too, like it
is very, it's just the same tax treatment is like a Roth IRA. Where you put in
after tax dollars, it grows tax-free and you can access it tax-free. Right now
the difference though is that unlike a Roth where your capital like six seven
grand a year, you can dump in, I have people dump in like over a half million a
year, like they end up as much as they want and there is no 59 and a half
rolls. You don't even have to wait until you are 59 and a half to touch the
money and you get your hand slapped with that stupid penalty, I can access that
money right now. Like I do not have to wait till then. So for any of my clients
are saying, Hey, I want to retire at 50 or whatever it might be, or 40 or
whatever. Well why would I want to put my money somewhere where they say, Hey,
you can touch it, but not until you are 60. It just does not make sense here.
We can get the money, use it, invested it however we want. there is no
restrictions. It does not have to be like self-directed. So it is pretty cool.
It's pretty flexible in how you use it.
Well, another advantage I see automatically as well as
there is no rules for prohibited transactions either. The IRS prohibits you
from investing in your self directed IRA into certain things or with certain
people.
there is no rules for prohibited transactions either. The IRS prohibits you
from investing in your self directed IRA into certain things or with certain
people.
That is right.
With this policy, you can invest that money any way you
want.
want.
That is right. that is why I say it's like a tax free savings
account. Right. Like it's tax free savings account kind of pays you way better.
It doesn't earn point nothing percent, but it can be used freely however you
want. I mean, I had somebody ask me the other day like, could I just blow it?
account. Right. Like it's tax free savings account kind of pays you way better.
It doesn't earn point nothing percent, but it can be used freely however you
want. I mean, I had somebody ask me the other day like, could I just blow it?
I'm sorry, I'm laughing at the point. Nothing is not a good
return. That is right. You make point nothing percent in the bank. You get
taxed on point. Nothing percent. I mean, that is a pretty crappy deal.
return. That is right. You make point nothing percent in the bank. You get
taxed on point. Nothing percent. I mean, that is a pretty crappy deal.
here is your tax savings right there.
That is right. You do not earn much. You do not pay
anything.
anything.
I remembered hearing you when you presented it to us at
our freedom founders event, were not you talking about how it worked for the
Rockefellers?
our freedom founders event, were not you talking about how it worked for the
Rockefellers?
Talk a little bit about that.
So the Rockefeller of, there is a guy wrote a book called,
Garrett Gunderson wrote what would the Rockefellers do? And this guy actually
used to work with years ago. We have taught that forever. Pretty much all it
is, is just keeping perpetual money going from generation to generation, right?
So that the money never runs dry. So like when you, when you have a trust, the
trust is what kind of goes to your heirs, and it just takes how the money gets
distributed, right. It is not just, give them all the money and boom, hope you
blow it by the time you are dead. It is like, Hey, we can direct how we want
this money to go to your, your kids and your grandkids and great grandkids and
so on.
Garrett Gunderson wrote what would the Rockefellers do? And this guy actually
used to work with years ago. We have taught that forever. Pretty much all it
is, is just keeping perpetual money going from generation to generation, right?
So that the money never runs dry. So like when you, when you have a trust, the
trust is what kind of goes to your heirs, and it just takes how the money gets
distributed, right. It is not just, give them all the money and boom, hope you
blow it by the time you are dead. It is like, Hey, we can direct how we want
this money to go to your, your kids and your grandkids and great grandkids and
so on.
Well, the way to fund it, of course, especially for your
state, is using the life insurance, right? The death benefit, not even the cash
cash is while you are alive when you are investing, right? Then you also get
this bonus death benefit that that can pay into that trust. So when you die, it
pays in it funds it. It kinda creates that funded trust. Now if you have all
your kids and grandkids also having policies as well, they all funded to the
same family trust. And so what happens, especially if you educate them, it's
not just, you can't just give up, set up the structure, right? It's not just
about getting a trust and everybody getting life insurance and whenever they
die it pays into it to fund it. It is also gotta be education-based too. You
gotta be teaching them, "Hey, how do I get, how do I actually create
money?"
state, is using the life insurance, right? The death benefit, not even the cash
cash is while you are alive when you are investing, right? Then you also get
this bonus death benefit that that can pay into that trust. So when you die, it
pays in it funds it. It kinda creates that funded trust. Now if you have all
your kids and grandkids also having policies as well, they all funded to the
same family trust. And so what happens, especially if you educate them, it's
not just, you can't just give up, set up the structure, right? It's not just
about getting a trust and everybody getting life insurance and whenever they
die it pays into it to fund it. It is also gotta be education-based too. You
gotta be teaching them, "Hey, how do I get, how do I actually create
money?"
"How could I not be a mooch? not being an entitled
trust fund baby". that kinda thing. And so you could set up parameter to
say, "Hey, you know what? Before you get access to this, really rich dad,
poor dad, or do this or do that". And if you access money from the trust,
you got to pay it back with interest. So you have got to borrow from it rather
than just receive it. that kinda thing. Like it is your responsibility to take
that money and kind of like the parable of the talents and the Bible is your
responsibility. Take it and make more with it. Not just bury it and or blow it.
That would be the fourth servant if that, if there was a forced serve in the
parable of the talents, they know like there is a guy just blew it. It's like I
got nothing left. Sorry.
trust fund baby". that kinda thing. And so you could set up parameter to
say, "Hey, you know what? Before you get access to this, really rich dad,
poor dad, or do this or do that". And if you access money from the trust,
you got to pay it back with interest. So you have got to borrow from it rather
than just receive it. that kinda thing. Like it is your responsibility to take
that money and kind of like the parable of the talents and the Bible is your
responsibility. Take it and make more with it. Not just bury it and or blow it.
That would be the fourth servant if that, if there was a forced serve in the
parable of the talents, they know like there is a guy just blew it. It's like I
got nothing left. Sorry.
Well you could set up a family office if you are, if your
net worth is high enough and do the same thing. I know that before they had the
benefits for your larger companies back in the day before you had your pension
plans, they would take their top executives and they would do the same thing.
They would get a life insurance policy and that life insurance policy on those
executives went towards the company to provide benefits for the executives. And
when one passed away, they would replenish with it. So back to, you know, being
the bank yourself when you have these policies and you can borrow against them.
Why pay the bank when you can borrow from yourself and pay yourself back with
interest and just continue to perpetuate the legacy. But that is right. you are
right. Typically after what, three generations, the fourth one did not have any
money left because they have not been trained properly or educated properly on
having to get going.
net worth is high enough and do the same thing. I know that before they had the
benefits for your larger companies back in the day before you had your pension
plans, they would take their top executives and they would do the same thing.
They would get a life insurance policy and that life insurance policy on those
executives went towards the company to provide benefits for the executives. And
when one passed away, they would replenish with it. So back to, you know, being
the bank yourself when you have these policies and you can borrow against them.
Why pay the bank when you can borrow from yourself and pay yourself back with
interest and just continue to perpetuate the legacy. But that is right. you are
right. Typically after what, three generations, the fourth one did not have any
money left because they have not been trained properly or educated properly on
having to get going.
That is exactly it. We will see what happens in Paris
Hilton's kids, right?
Hilton's kids, right?
Well listen, you are always going to have somebody that is
going to be, I don't want to say worthless, but kind of a sponge off the rest
of it, but at least with a death benefit, when they do die, they put something
back in. Right?
going to be, I don't want to say worthless, but kind of a sponge off the rest
of it, but at least with a death benefit, when they do die, they put something
back in. Right?
that is true. Even they blow it all it can. You put it
right back in and that is kind of the cool thing about it. If you think about
it like, wait, how you use life insurance? Even just think from a death benefit
standpoint, which is not usually the thing I focus on a lot. But when you think
about from that standpoint, it kind of gives you the permission to blow your
money while you are alive, right? You can spend down on your assets or build
assets. You can do either. Right? But I get some people to say, what, I do not
want to leave anything for my kids. Like I want to spend all my assets like
well cool, you can spend it all down. You gave him a run up a mortgage, even do
a reverse mortgage. You get more cashflow that way and then the death benefit
can pay it off.
right back in and that is kind of the cool thing about it. If you think about
it like, wait, how you use life insurance? Even just think from a death benefit
standpoint, which is not usually the thing I focus on a lot. But when you think
about from that standpoint, it kind of gives you the permission to blow your
money while you are alive, right? You can spend down on your assets or build
assets. You can do either. Right? But I get some people to say, what, I do not
want to leave anything for my kids. Like I want to spend all my assets like
well cool, you can spend it all down. You gave him a run up a mortgage, even do
a reverse mortgage. You get more cashflow that way and then the death benefit
can pay it off.
It can pay off all your bills you ran up or whatever you
want to do. You can do it however you want, but it's kind of funny when you
think about how that is way better than people that live today usually run
thinking they're going to run out of money at some point. Right? They are to
think, "Oh well I do not want to live too long because if I do, I'm out of
money and I'm broke living in with my kids again and I want to do that. Cause I
do not like that son", or whatever it might be, or his dog or dog.
want to do. You can do it however you want, but it's kind of funny when you
think about how that is way better than people that live today usually run
thinking they're going to run out of money at some point. Right? They are to
think, "Oh well I do not want to live too long because if I do, I'm out of
money and I'm broke living in with my kids again and I want to do that. Cause I
do not like that son", or whatever it might be, or his dog or dog.
That brings up another question, so I love the reverse mortgage
piece for someone, a couple of that is downsizing now has the asset of their
home, which is typically your largest asset and then let's assume it's free and
clear. Now you are going to sell that home and then downsize somewhere else.
Well with a a reverse purchase money mortgage. A lot of people don't know that
those are even available. You could sell that house, take half of the money and
use it as a down payment on a reverse purchase money mortgage and never have a
mortgage payment again for the rest of your life. Do I have to worry about is
taxes, insurance and homeowners association dues if that is where you choose to
live, you take the other half of that money, you could put it into that cash
value insurance policy and continue to compound that and then borrow against it
and do other investments. Now that is right me and said you have to be 62 years
old to qualify for the reverse mortgage. What kind of age range are we looking
at to get an insurance policy and still it being affordable at that age?
piece for someone, a couple of that is downsizing now has the asset of their
home, which is typically your largest asset and then let's assume it's free and
clear. Now you are going to sell that home and then downsize somewhere else.
Well with a a reverse purchase money mortgage. A lot of people don't know that
those are even available. You could sell that house, take half of the money and
use it as a down payment on a reverse purchase money mortgage and never have a
mortgage payment again for the rest of your life. Do I have to worry about is
taxes, insurance and homeowners association dues if that is where you choose to
live, you take the other half of that money, you could put it into that cash
value insurance policy and continue to compound that and then borrow against it
and do other investments. Now that is right me and said you have to be 62 years
old to qualify for the reverse mortgage. What kind of age range are we looking
at to get an insurance policy and still it being affordable at that age?
If you are at least average health, you could typically do
this even into your early seventies or so. I mean you can go later, but the
numbers get tricky because it depends on cashflow, And, and things of that at
that time. Every once in a while I'll get people in their seventies and they do
not have a whole lot of cashflow. It's like, "You know what? We might use
a different product". We might use like a universal life because term they
wouldn't let you get term after age 70? So you might have to get like a
universal life that is kind of cheap, that just gives you your death benefit
and that is it. So if we did that, it's like, okay, if we get this lump sum of
cash, if it doesn't make sense to do the whole life, well great. We could do
something like a cheap universal life.
this even into your early seventies or so. I mean you can go later, but the
numbers get tricky because it depends on cashflow, And, and things of that at
that time. Every once in a while I'll get people in their seventies and they do
not have a whole lot of cashflow. It's like, "You know what? We might use
a different product". We might use like a universal life because term they
wouldn't let you get term after age 70? So you might have to get like a
universal life that is kind of cheap, that just gives you your death benefit
and that is it. So if we did that, it's like, okay, if we get this lump sum of
cash, if it doesn't make sense to do the whole life, well great. We could do
something like a cheap universal life.
And then invest the difference elsewhere. Right. There is
always awakened work. It just depends. But, and the strategy I talked about
where you get to double dip on your investment returns and make money twice,
and that is usually best when you are in that accumulation phase, right? When
you are building your assets, trying to build your cashflow, that is when it is
perfect. If you are at the point where you are now saying, I'm just trying to
consume money at this point, , then we might switch it up. We might just say,
Hey, minimum death benefit. We just need the minimum amount. We don't need an
overfunded, like what I usually do with my policies where you dump in more cash
and that is what goes into that account faster. We might just say great,
simple, easy, invest the rest. Nice.
always awakened work. It just depends. But, and the strategy I talked about
where you get to double dip on your investment returns and make money twice,
and that is usually best when you are in that accumulation phase, right? When
you are building your assets, trying to build your cashflow, that is when it is
perfect. If you are at the point where you are now saying, I'm just trying to
consume money at this point, , then we might switch it up. We might just say,
Hey, minimum death benefit. We just need the minimum amount. We don't need an
overfunded, like what I usually do with my policies where you dump in more cash
and that is what goes into that account faster. We might just say great,
simple, easy, invest the rest. Nice.
What would a young person do?, somebody that is kind of
newish, maybe have a young family. I'm thinking, they do not have a whole lot
of money to put in, so, so where would you go from that direction?
newish, maybe have a young family. I'm thinking, they do not have a whole lot
of money to put in, so, so where would you go from that direction?
I actually just had somebody like that last night I talked
to, he is like 29 years old. He's got two young kids, one on the way and he was
like, "Hey, I think this concept is cool. I want to start investing at
some point". And I was like, "Okay, well how much per month or year
are you trying to save up to do that?" And he's like, "well maybe
like five 6,000 bucks." And we are trying to put away, we're trying to put
away 700 a month to build our savings. All right. I'm like, "we could do
this strategy." And I showed him like a really basic $5,000 a year type
policy. And because he is younger and in good health it is cheaper, right?
to, he is like 29 years old. He's got two young kids, one on the way and he was
like, "Hey, I think this concept is cool. I want to start investing at
some point". And I was like, "Okay, well how much per month or year
are you trying to save up to do that?" And he's like, "well maybe
like five 6,000 bucks." And we are trying to put away, we're trying to put
away 700 a month to build our savings. All right. I'm like, "we could do
this strategy." And I showed him like a really basic $5,000 a year type
policy. And because he is younger and in good health it is cheaper, right?
So the younger and healthier you are, the easier it is to
not only put in less money and make a better return, but you get all kinds of
flexibility. So I showed them that, but it didn't quite meet all their needs,
what he wanted for insurance. I was like, great. We'll buy some convertible
term, so he got him another half million of term as well. And the cool thing is
via convertible term you can convert that at any time without having to re
qualify your health. So like, like for example, I had a guy that was up in
Maine, it was a, it was a healthy doctor, 65 years old. we have got a whole
life policy for him and we got some term insurance, right, just to kind of
cover that basic death benefit need. And of course about two years later he got
diagnosed with brain cancer.
not only put in less money and make a better return, but you get all kinds of
flexibility. So I showed them that, but it didn't quite meet all their needs,
what he wanted for insurance. I was like, great. We'll buy some convertible
term, so he got him another half million of term as well. And the cool thing is
via convertible term you can convert that at any time without having to re
qualify your health. So like, like for example, I had a guy that was up in
Maine, it was a, it was a healthy doctor, 65 years old. we have got a whole
life policy for him and we got some term insurance, right, just to kind of
cover that basic death benefit need. And of course about two years later he got
diagnosed with brain cancer.
It was inoperable. So he was doing treatments flying all
over the country and everything. And fortunately a year and a half later it was
gone. No evidence of it at all. Right? So he beat the odds. Problem is if he
tried to get insurance, it's impossible because now they are like, Oh, what if
it comes back? We don't want to reassure you. Right? But the good news is we
got that term insurance when he was perfectly healthy. So that term insurance
now we can convert and it actually they, they will give them that perfect
health. So they'll treat him as if he was in perfect health when we convert
that to a whole life policy. So it's a, it's kind of a kind of a cool thing to
do it that way. So if you are young, I mean sometimes if you can do it, if you
are strapped for cash though, we don't even worry about doing a whole life.
over the country and everything. And fortunately a year and a half later it was
gone. No evidence of it at all. Right? So he beat the odds. Problem is if he
tried to get insurance, it's impossible because now they are like, Oh, what if
it comes back? We don't want to reassure you. Right? But the good news is we
got that term insurance when he was perfectly healthy. So that term insurance
now we can convert and it actually they, they will give them that perfect
health. So they'll treat him as if he was in perfect health when we convert
that to a whole life policy. So it's a, it's kind of a kind of a cool thing to
do it that way. So if you are young, I mean sometimes if you can do it, if you
are strapped for cash though, we don't even worry about doing a whole life.
We just say, great, let us do a convertible term. When you
have got more cashflow or more money, then we start throwing some money in it,
so we can get a get better return on it.
have got more cashflow or more money, then we start throwing some money in it,
so we can get a get better return on it.
Wow, that is incredible.
That is awesome. Are you taking individual clients or are
you looking for financial advisor insurance? Licensed insurance agents as
clients.
you looking for financial advisor insurance? Licensed insurance agents as
clients.
I have already got some guys that have been training off
the sites. I really, I'm taking on individual clients. Just to do the life
insurance and the consulting and things like that.
the sites. I really, I'm taking on individual clients. Just to do the life
insurance and the consulting and things like that.
Awesome.
Go ahead and tell us how you want to be contacted.
Well one, I mean definitely I would invite you guys to
follow my podcast, which is called the Chris miles money show. It was a really
unique name. It took hours and days coming up with his name, but check out the
Chris miles money show.
follow my podcast, which is called the Chris miles money show. It was a really
unique name. It took hours and days coming up with his name, but check out the
Chris miles money show.
It's on iTunes, and all the other podcasts, apps and such
and you could also just go to my website, moneyripples.com and there is some
great blogs on there, some good information, even an ebook that I have that is
massive 28 pages. Could I put page breaks in it? So, it will take you like
maybe 20 minutes to read through it all, but it's got awesome tips on ways to
actually increase your cashflow to, to, to the tune of like 34,000 a year as
the average.
and you could also just go to my website, moneyripples.com and there is some
great blogs on there, some good information, even an ebook that I have that is
massive 28 pages. Could I put page breaks in it? So, it will take you like
maybe 20 minutes to read through it all, but it's got awesome tips on ways to
actually increase your cashflow to, to, to the tune of like 34,000 a year as
the average.
Wow. Nice. so we are going to have all those, links in our
show notes as well as on any of the videos. And that reminds me, by the way,
thank you guys so much for joining us. Please follow us, please like us. And
then tell your friends. We have some other shows here for other shows that you
get to go on exactly where they are in the screen, so look around it. You will
see some links there and.
show notes as well as on any of the videos. And that reminds me, by the way,
thank you guys so much for joining us. Please follow us, please like us. And
then tell your friends. We have some other shows here for other shows that you
get to go on exactly where they are in the screen, so look around it. You will
see some links there and.
And Chris' information as well.
Right. Chris, you have been awesome. Thank you so much for
joining us.
joining us.
It's been a pleasure. It's been a lot of fun, guys.
Thanks.
Thanks.
We will see you guys on the next show. Thanks
[inaudible].
So thank you so much for joining us. If you really like
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what you heard, you want to see some more switch over here or here or perhaps
there there is more episodes, but they are somewhere click it on there. Either
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