“I think what people have to do when they’re trying to build uncommon wealth, they have to do things in an uncommon way and that’s what Deferred Sales Trust is. People don’t know about them because they’re not that common and that’s one topic that I think is important for people to understand. What the most real thing is, is that the ultra-wealthy people build teams around themselves.” Bruce Wehner is the Lead Advisor of The Money Advantage, where he designs and communicates the individualized solutions that help their clients increase cash flow and financial control. Bruce leans on his experience as an educator and varsity head coach, lifelong entrepreneur, and real estate investor.
“It doesn’t really matter what our economic landscape is. Even if the stock market is hitting highs, even if we’re super volatile, even if we’re low, if interest rates are high, interest rates are low, no matter what the landscape is around us. I think the number one position that puts somebody in a place where they can have peace of mind, where they can take advantage of opportunities and they can protect their family, they can enjoy life.” Rachel Marshall is the Co-Founder, Chief Financial Educator, and Content Strategist of The Money Advantage. She is known for making money simple, fun, and doable. She’s currently writing a book about her near-death experience and how it became the springboard for her family’s multi-generational legacy of more than money.
Bruce Wehner and Rachel Marshall are the co-hosts of The Money Advantage podcast, the popular business, and personal finance show.
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Your Wealth Plan With Infinite Banking & Deferred Sales Trust with Bruce Wehner and Rachel Marshall
Brett:
I’m excited about our next guest. We have Bruce Wehner and, Wehner, I’m not sure if I’m pronouncing that correctly-
Bruce:
Wehner is correct, yeah. You’re good.
Brett:
… and Rachel Marshall. And Bruce is the chief cash flow strategist at The Money Advantage. He is focused on designing and communicating individualized solutions to help their clients increase their cash flow and financial control. He oversees the experience and serves as the lead advisor and director of the advisory team. He also appears weekly as the co-host of The Money Advantage Podcast. Brings his years of industry experience, divide, context, stories, depth, and wisdom to their educational content. I like that he’s been 17 years as an educator and varsity head coach, which we’ll talk about that here in a minute. And I will let Rachel introduce herself, Rachel, how are you doing?
Rachel:
Awesome. Brett, thank you for having us on the show this morning.
Brett:
Absolutely. Give us a little bit about your background and then we’ll dive into some questions for you and Bruce.
Rachel:
Very awesome. Well, I came into this space with The Money Advantage specifically because I wanted to help people really understand how to make financial decisions that put them in control. So I am one of the co-owners of The Money Advantage. I also am the co-host of The Money Advantage Podcast, Bruce and I show up weekly on that. And really my unique ability, my genius if you will, is taking the giant concepts and boiling them down and making them simple, fun, and doable. Really, that is my unique space where I help people really to be able to thrive. And now I came into this from business ownership in a health insurance agency and really even before that really had a lot of growth in developing skills that would help me be successful through reading Robert Kiyosaki and really have a passion to help people not only have financial control but to be able to create time and money freedom.
Brett:
Beautiful, amazing. And Bruce, you want to give us your 30 seconds? Because I feel like my 30 seconds didn’t do you justice there.
Bruce:
Well, yeah. You don’t know me very well Brett, 30 seconds I can’t stick to that so I might have to stick to 45. So actually I grew up in the ’70s when there were a lot of tumultuous times. Nixon took us off the gold system, we had massive inflation through the Carter years. I was trying to figure out all this stuff. I went to work really early at age 12 and then I started some entrepreneurial things. I got into education. I was a college athlete. I then took that education, I taught biology and I actually coached several varsity sports. That’s one of the reasons I don’t do it anymore, they wore me out after 17 years. But along the way, I actually got approached by somebody from Franklin Life and they said that we thought financial education was poor in the schools so they were recruiting educators to actually work part-time to teach financial education for their whole life insurance products as a way to have tax-free retirements. And that’s how I got into the financial industry. And along the way, then I actually did a whole lot of other different things. And then Rachel and I met each other several years ago because our parent company in St. Louis, e3 Consultants Group was actually trying to help the industry be more collaborative. We thought if we could actually raise the tide all the boats would go with it and so we were trying to do things in a collaborative, not a competition and that’s how we met Rachel. She and Lucas had the idea of doing The Money Advantage Podcast so that we would teach educational financial topics and that’s where we are today.
Brett:
Beautiful. I love it. So let’s dive right in, right? We’re post-election where we’re somewhere in the midst of, I don’t know, COVID is behind us, it’s just starting or who knows? I think the stock market hit an all-time high yesterday of 30,000, interest rates are all-time lows and you go, where are we? Right? So, Bruce, can you kind of give us a little bit of where you think we are and maybe your thoughts for 2021?
Bruce:
Yeah. I think people really over-read the fact that the Biden administration or a democratic administration would be different than a Republican administration. To me, they’re two wings of the same bird. There’s really not a whole lot of actual difference between the two parties, there’s a lot of rhetoric about the difference between the two parties. Unfortunately, the most important and powerful indication entity and they are indicating what they’re going to do in our country is the Federal Reserve and how they manipulate monetary policy. They were supposed to be the lenders of last resort, which was supposed to be their etic in this world. They have now changed to where they are trying to actually manipulate everything, including the stock market, which they have done very, very well. So we are not trading on actual sound fundamentals anymore, we are trading on emotion, hope, and speculative theories because of what the Federal Reserve has done. I think we’re going to have massive inflation in the future because of all this money we’re printing. That doesn’t mean that it’s dire, it means that it’s going to help some sectors, it’s going to hurt some sectors, just like every economic policy does. And if you can have the foresight of controlling your money and having assets that you can then get or capital assets that you can actually get into these particular sectors at a particular time, that’s the most important thing in my mind, so that you can actually turn a small boat quickly rather than an aircraft carrier being slow to turn with the economic change. So-
Brett:
Excellent.
Bruce:
… that’s where I think we’re going into the near future.
Brett:
Thank you for sharing that. And maybe we’ll start with Rachel, maybe the top couple of secrets to controlling your money for what you guys do. And would you maybe dive into the first secret, Rachel, what comes to mind?
Rachel:
Yeah, I really appreciate you asking that. And I think that really is the reason and the focus that everyone should have at this time. It doesn’t really matter what our economic landscape is. Even if the stock market is hitting highs, even if we’re super volatile, even if we’re low, if interest rates are high, interest rates are low, no matter what the landscape is around us. I think the number one position puts somebody in a place where they can have peace of mind, where they can take advantage of opportunities and they can protect their family, they can enjoy life. They can relax a little bit and not just have to be uptight and watching the market and not feeling like they’re at the mercy of something else bigger than them, is to take control. And so, just even you asking that question, what are the ways to take control? This means that taking control is better than just going with the flow and going with the status quo. So I really appreciate the insight behind that question. I would say probably the first way or the first secret of taking control is realizing that you have the ability to become your own bank. And I’m not going to get too technical right off the bat in this show but what’s really interesting is a lot of times we give up control by every financial decision we make. And if you think about it and step back from the maybe typical way of thinking, I just want the best interest rate. I just want to pay off my house as fast as possible. I just want as high of returns as possible, those are what everyone’s looking for. But if we turn off that noise and just step completely back from that discussion and say, what actually has dollars flowing into my house, my hands, my control? And how do I keep as much of those as possible? And how do I protect them? And then how do I turn my money into more money? So we’re thinking about cash flow. I’m thinking about how to increase my cash flow and I’m thinking about how to increase my protection. I’m thinking about not just paying off a loan as fast as possible, because if I pay off my house as fast as possible, I’m putting all of my dollars into the four walls of the house. And now my house has a lot of money, but can I access and use that? Who knows maybe the bank will give me permission, maybe they won’t. And if I think about just getting as high of a return in the market as possible, well, if the market goes up, that’s wonderful for me, but what if the market goes down, then I’m again being kind of jerked along by this. I’m at the end of like I’m water-skiing and I’m being drugged through the water. I’ve tried to surf in the water, I don’t know if anyone has ever tried this before. It’s not a good feeling when you’re being drugged and the water is waterboarding you, going up your nose, and that’s how it can feel when you are just being at the mercy of something else. So the first secret would be to figure out a way to have more dollars flow into your control, keep and protect that money. Don’t just think about how I can deploy it as fast as possible into an investment. Don’t think about how I can just pay off other loans because I’m then actually putting my money in the control of the bank or the financial institution, the lending institution that lent me that money in the first place. And I’m really benefiting them tremendously by increasing their cash flow and their control of the capital. But instead, I want to think about how I want the cash flow and the control for myself.
Brett :
Excellent. So you either build the bank streams or you’re building your own personal family bank stream, is that a fair summary? Rachel?
Rachel:
Very fair summary. I love how you put that.
Brett :
All right. Well, I’ve been Wells Fargo for a long time and maybe it’s time to come to the bank of Brett. Right? That would be pretty cool. Right? Bruce, any thoughts on that?
Bruce:
Well, Brett, I think the big thought is kind of what you help people with, is one of the biggest things that flow out of our control is taxes. It’s one of our biggest actual expenses that we have. And so if you can control your tax situation legally, and we’re both on the same page as far as that goes, then if you can actually control that legally and at their time, what I would call the appropriate time. For example, we’re not big on deferring taxes into the future because we are not sure what the tax rates will be in the future. But there are times when you might do that, it depends on whether you’re controlling when you can actually do it or not. So you are actually with the Deferred Sales Trust, you actually are and still in control because you can actually take the money out and decide to pay the capital gains at the time that you want to pay the capital gains, not when the government says you have to pay the capital gains. And it’s all very, very legal because it’s a third party. I’m sure your listeners all know about that, but that’s the only thing, I also I would like to say is the most important thing is to control when you pay your taxes because that’s, in most cases, your most expensive expense going out of your cash flow.
Your Wealth Plan With Infinite Banking & Deferred Sales Trust: “It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” ― Robert Kiyosaki
Brett :
Yeah. Let me touch on that. And this is accurate, thank you for plugging the Deferred Sales Trust. And we call that the water spicket, right? When you can turn the water spicket on or turn it off. And so some of our high net worth clients, have very, very high net worth right now and they’re selling this highly appreciated asset that’s also producing a big income for them and they may have been fully depreciated, right? So they’re having to pay that tax and then they’ll be able to offset it. Well, now they can park the equity into the trust, and then they can keep that spicket off, meaning that all of the cash flow or all of the interests that it’s earning, it’s just going to compound on top of itself. In the meantime, their income over here, their personal income has gone down. Right? Now, fast forward five or 10 years, let’s say, and they quit their day job. They’re a dentist or a veterinarian. We do a lot of deals with M&A type of stuff where someone’s buying a big company and they’re keeping them on to perform, right? And to earn out and they’ll still have a high-income, well guess what, five or 10 years from now their income may go to zero. In the meantime, it’s kind of like they parked it in this IRA or this 401(k), and it’s been compounding. They can turn the spicket on over here as this income has gone low and so they’re receiving it in a lower tax bracket, right? Because their income isn’t so high. So I think that’s exactly, a part of the value is paying taxes or taking the income, would it make sense for you versus just taking it all at once and getting hit and it’s gone forever. Is that a fair summary, Bruce?
Bruce:
Absolutely. And if I could add one more thing is sometimes it’s actually advantageous to take more income than you need, fill up to the top of the tax bracket that you actually control that year because required minimum distributions in a tax-deferred, you will be out of their control. So we actually work with performance, doing projections for our clients all the time and say, I know you don’t need this money, but we know you’re going to pay at least this much this year, next year, or maybe, even more, when the required minimum distributions come about, so we actually actively figure out, hey, let’s go ahead and take more of this money, park the excess into a more tax-efficient situation, and that’s called an act of tax planning. You decide when you’ll pay the taxes, not when you’re doing required minimum distributions, where the government decides when you’re going to pay taxes.
Brett:
Very well said. And by the way, just to clarify, the Deferred Sales Trust doesn’t have any required minimum distributions like an IRA might have, right? So it’s beautiful. So you could literally say, hey, I don’t want to take anything for a long time. Now, we do like to get some income coming from the trust, small amounts in the first three to five years, it could be a small number but nothing large, but it’s not a requirement per se like an IRA, so I’m with you there as well. And I like the way you put that active, right? Maybe versus passive. And I like to translate different planning techniques as transactional versus transformational, right? And so if you think about it, active is more like transformational. It gives you control, it gives you the power, it gives you options, passive is more transactional. I just set it over there and I have to take required minimum distributions, or I have to pay the tax when they say, right? That’s more like transactional. Transactional tends to favor the bigger banks or the bigger institutions or some of the more common, I guess, known strategies, but we want to put the power and the responsibility back in our hands, that’s when I think the transformation happens. Any thoughts on that, Bruce? Is that a fair summary?
Bruce:
Yeah. Oh, that’s a great one. And here’s what I tell people all the time. First of all, CPAs are very bright people. Okay. They’re very well-educated people. However, they’re really bright and educated in a very narrow model. And unfortunately, they can’t even be educated on all almost 80,000 pages of the tax code. So they often try to trumpet the fact that, hey, do this particular thing, you’re going to save taxes this year. But what they do is saving taxes that year actually causes you to pay more taxes over your lifetime. So I tell people all the time, this is what your CPA says to you, you should say, well, I know that’s saving me taxes now, but will it actually cause me to pay more taxes over my lifetime? So that’s what you should always ask yourself. Okay, I’m saving taxes now, but is it going to cause me to pay more taxes over my lifetime? And that’s the difference between having a passive strategy and then having an active strategy. And you’re absolutely correct with the Deferred Sales Trust, which we actually endorse and we love, you actually might want to take more income now and defer your Deferred Sales Trust income until later on because it’s going to be taxed in a different way. And that different way could be advantageous to you once you get rid of all the taxes on your tax-deferred accounts because that’s taxed at ordinary income.
Brett: 
Yeah. So many ways to kind of unpeel the onion. But the key is to get with trusted advisors, I like to call it the dream team. And if you consider having Rachel, consider having Bruce and of course, consider having me be part of your dream team to help you clarify your different options, right? And it is nice to have multiple folks helping with that. And here’s the key question for that CPA, is what I’m investing in, can I get a new depreciation schedule? Because part of what you want to be able to do is take income when it makes sense and also offset it with depreciation. This is one of the reasons I love, and you mentioned Robert Kiyosaki in the beginning, Rachel, Rich Dad, Poor Dad, right? The idea is taking cash flow from appreciating assets, which you can depreciate, which can offset in the given years. So let’s say you own a five-million-dollar apartment complex, right? You have the ability to offset income as it comes and 27 and a half years is typically what it is. So you take about 20% of that five million. They typically attribute that to the land, but the next 80% is typically attributed to the building, you can depreciate that in the given year. So the IRS says, “Hey, those certain things are going to wear out. And so, as you receive the cash flow, you can wash it away, and therefore you have a zero tax event. You can also do accelerated depreciation as well. Biden is talking about taking some of that away, talking about taking 1031 away. That’s kind of another topic, but these are the key things of why it’s wise to have advisors to help you through that. So, any thoughts on that, Rachel?
Rachel:
Yeah, actually. So you’re talking about cost segregation, which is a strategy as well, that a CPA can look at for specifically real estate investors to recognize that you can lower the taxes in this particular year and make sure that you’re depreciating more. And what’s really interesting, so there’s a lot of difference between depreciation and a deduction, or I’m sorry, a deduction versus a deferral. So either you’re deferring taxes to the future or you’re deducting them, which means you’re not going to pay tax on that amount of money this year or any year in the future. And so really when you’re looking at a full tax strategy, you’re thinking comprehensively, how do I minimize my taxes legally in this current year? And then also make sure that every year going forward, I’m reducing the taxes. And so it is all part of a strategy, and it depends on what specifically you’re invested in, what your long-term goals are, but it is very interesting to be able to use strategies like cost segregation. And our tax attorneys and tax advisors that are inside of the wheelhouse of our full resource network as well, with the money advantage, we’ll help people work through what are the best strategies for them in their situation. What are the best entity types, even for them, so that they can take advantage of maybe minimizing their self-employment taxes by the type of entity that they set up? There are just so many different ways of looking at tax savings that are maybe not necessarily out of the box, but they’re just something that most people or the general public might not necessarily be aware of the options and opportunities that they have to be able to save in taxes.
Brett:
Excellent. So let’s take step two, maybe a secret number two. So we’ve kind of talked about secret number one, be able to take control and kind of maybe even change your mindset from who has the control around money, where’s the cash flow flowing, I’m I being active or passive. So now let’s go to step number two. What would come to mind, Rachel?
Rachel:
Well, I think when we’re looking at the big picture and we’re saying, how do I get as many dollars flowing into my control as possible? And how do I make sure that I’m controlling that money? Now, I’m starting to think, okay, what if I could store my own capital? And you kind of mentioned or alluded to this, what if I went from the bank of regular banking to the bank of Brett or in my case, the bank of Rachel, the Marshall bank, the Marshall family banking system. And so what’s really interesting is that if you or I, or any business owner think about building reserves that they can own and access, this then becomes a pool of capital that can be used for anything. For emergencies, for opportunities, and just think about how much better you would feel and how many more opportunities you could take advantage of if you had $500,000 that you could easily access in your own control. Not that you had to get permission from someone else to use it, not that you had to qualify for it, not that you had to have a long time table. What if it was something that was a cash-based investment that you wanted to take advantage of right now? And you are the one with the negotiating power because you have the capital in your control. So that is a position that we really highly would recommend that anyone would think about, how do I get as much capital in my control as possible, not only is a tremendous amount of peace of mind and safety, now I’m in a position where I have negotiating power for investing and I’m able to look at the world differently because I have that capital. And I’m now thinking about how do I use this money to create more? How do I invest this wisely as opposed to the person that says, well, maybe I could go get bank financing perhaps, maybe I can take equity out of my house perhaps? I don’t know if I’d actually be able to use that, but if I instead have cash in my control.
Brett:
So let’s walk through that. So someone says, yeah, I’m interested, what are the next steps. Working with Bruce or Rachel to set this up, what does that look like? Give us your dream client, right? Or your dream customer that you’re helping out.
Bruce:
Well, I think first of all we only want to work with people that have good money habits, because this is not magic. I try to tell that we get inquiries all the time from people that are in hundreds of thousands of dollars of bad debt and they think, oh, well, I can do this system, and all of a sudden I can get out of it. And not even get out of it in like five to six years, they think they get out of it within a year because they think it’s magic. This isn’t magic. So business owners are high net worth individuals who normally have good habits, that’s why they are high net, worth individuals. But I see all the time where a business owner will be storing 800,000, a million dollars in the bank getting almost nothing in return and then I ask them why, they say because if they have an opportunity, they want to be able to take advantage of that. And then they’re paying for a life insurance policy for either a key man or a buy-sell agreement, or frankly, just because they want to pay estate taxes if they were to pass away. And I say, well, why don’t we take a portion of this and actually transfer it from where you’re making hardly anything at the bank and paying taxes to a specially designed whole life insurance product, where now you’re funding your buy-sell agreement or your key main insurance with this. You’ll actually still have access to the capital if it’s designed properly and you have a death benefit that could actually pay some or all of your estate taxes because you’ve been very, very successful. And you’re speaking of the new administration. That’s another thing that they’re talking about increasing is, or I shouldn’t say decreasing the exemption of people who pay higher estate taxes. The most efficient way to pay estate taxes is with the leverage death benefits for your estate. I was just talking, I don’t know if we can get into this or not, but I was just talking… I’m in St. Louis and the St. Louis Rams actually left the pro football team to go to LA. And a lot of people don’t realize one of the reasons was Georgia Frontiere the actual owner of the Rams died and her estate couldn’t pay the estate taxes. So they had to sell off to the minority owner because they had to pay the estate taxes to the federal government. And then the minority owner wanted to move the team from St. Louis to Los Angeles. So if they had a way to pay the estate taxes efficiently, it would have never moved.
Brett:
Yeah. So much there. And just for our listeners who are wondering if you’re worth 22 million or more, and you’re married, anything above and beyond that it’s inside of your tax we’ll say, it’s going to be hit with what’s called a 40% death tax and in 12 million if you’re single. Now in 2025, those are set to expire and most, I think believe or think it is probably going to go back to the old, which is 12 million married and about six million single so it’s pretty drastic. And it has nothing to do with capital gains tax, that’s just a stepped-up basis, it’s completely separate, it’s called the death tax. So many of the thoughts on that, Bruce?
Bruce:
Well, Brett, I just like to say, before it was at six billion before the Obama administration it was only one million and two million for a family. So, I mean, you don’t even know where it’s going to be when you die. There was no estate tax when George Steinbrenner died from the New York Yankees, he died in exactly the right year, but we don’t know what they’re going to be. So I tell people all the time, that’s the one thing about taxes, you never know what they’re going to be because Congress can change the tax laws at any time. So controlling when and how you pay taxes or getting money into a tax-free situation is very, very important.
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Brett:
So and to plug this now from the Deferred Sales Trust for those that don’t know, and maybe you guys don’t even know this Bruce, Rachel but, we actually have a thing called a Deferred Sales Trust Plus, and it’s in combination with what we do. But you can literally move in one day, one deal, all of the equity outside of your taxable estate. As you sell an asset, you have to be selling something. So let’s say, Bruce, let’s say you’re married and you’re worth 52 million bucks. And all of it’s inside your taxable estate, and you haven’t done any extra planning or about life insurance, as you said, offset some of the stuff and you had a $30 million apartment complex. Well, if you did nothing Bruce and you were to pass away and your wife passes away and the estate passes, you’re looking at 40% on that 22 million which is, oh I’m sorry, 52 million minus the 22, which is a third of 30 million would be $12 million. Okay, 40% of that. Well, you could sell that $ 30 million asset before you pass and the next day it’s all outside your taxable estate with no FLPs and it’s completely outside of the taxable estate, and so this is the beauty of what we can do. So for those who are listening, we have a solution for you. It does take selling something, but also all of the growth of that. So you might say, well, I’m in good health Brett I’m selling tomorrow, but I got at least another 10, 15, 20 years, maybe 30 years left in me here. Well, all of the growth of that is outside of your taxable estate. And then this is the cool part too, you can also use the interest off of that, that it earns to form a life insurance, a premium life insurance policy, right? To get an extra benefit for a death benefit or infinite banking. The point is, again, active preparation in control, right? Using legal laws to do these things, to benefit yourself and your wealth and your family versus sitting back passive, and then counting on this, oh, it’s 22 million, now it’s 12, now it’s one, now it’s six. Let’s just get it all outside the taxable estate so no matter what it is over here, it doesn’t matter. So any thoughts on that? And I’d like you to also connect it to infinite banking, because once you set that up, right? Aren’t we basically saying, whatever happens over here, it’s okay, because we’ve put it over here? Is it Bruce what we’re talking about?
Bruce:
Yeah. Brett, one of the things I like to say is, people, say to us all the time is, well yeah, but couldn’t they change the laws on life insurance contracts. And I would say, yes, they have in the past but because it’s contract law, let’s think about this. There’s a difference between tax law and contract law. Contract law is the fabric of every single society. And so you cannot just change contract law at the drop of a hat because then you would be changing what societal beliefs are. So when you’re actually thinking about going forward, doing things that you can have a contract with, or in a trust situation where it’s not easy to change those, because you’re changing the fabric of society, that’s very, very important. So that’s one thing I do believe that people if they can get into these, whether it’s the DST or whether it’s life insurance, where yes, they have changed the laws passed, but they’ve always grandfathered the current contracts of these because of the fabric of society.
Rachel:
What I would share with this as well as that, so when you’re looking at your entire financial system, it’s really helpful to think of the whole thing as a system or as something that all works together, not, I have my mortgage here and I have my investments here and I have my Deferred Sales Trust here, and I have my life insurance here. And when Bruce was talking about earlier, the idea of marrying multiple objectives together with one strategy or one product, what’s interesting is that I mentioned at the beginning, having cash flow and control, that’s more of a principal level. That’s something that you want as a foundational philosophy of your financial life. And then when we look at, okay, well, if that’s my philosophy, if that’s my principle, what strategies helped me accomplish that? We’re talking about a lot of tax strategies here and having a strategy of having cash in your control. Now we can talk about the tactics, what are the tactical things that we do to accomplish that strategy for the purpose of cash flow and control. And this is where I see life insurance with infinite banking or privatized banking, it can be called either, connecting over with the Deferred Sales Trust. Let’s just go ahead on life insurance for a second. If I can think about my entire financial life instead of multiple, all these different objectives. If I can think of how I can have my money multitasking and doing more than one thing at the same time, how can I accomplish multiple objectives with one tool, that is a strategy that I’m really interested in because it’s really efficient for me. So if I can use a whole life insurance policy, now we’re not talking about any type of life insurance, I just want to be really clear. We’re talking about a dividend-paying, high cash value, whole life insurance policy with a mutual company. There are multiple reasons for that, but I just want to be really specific. And it’s also a specially designed policy for early cash value that you can access and use, which also has the maximum long-term growth with dividends and interest. If I can think about using that as a tool, a tactic, what does that help me accomplish with my strategy? That helps me to save in taxes on a long-term basis because it is a tax advantage, we actually call it a triple tax advantage. The reason is that I pay taxes on the money before it goes into the contract and then once it’s in the contract, I can access and use this money on a tax-deferred basis or what that experience is. And my actual experience means I don’t pay tax when I use my money in the form of policy loans or withdrawals up to the amount that I put in. And then I also get to have this death benefit that pays out to my heirs tax-free, so it does not hit their income tax. What that means is I’m putting tax before I put the money in. I’m paying tax on the seed, not the harvest. Now, the cool thing about being able to have this tool accomplish multiple strategies; I’m saving in tax, I am in a position now where I’m building this pool of capital that I can use for emergencies and opportunities, I’m in a position to where now I have access to capital, I can borrow against this policy and collateralize my cash value, fancy words, but really what I mean is that my cash value that’s growing at a compound growth rate that’s very competitive, never interrupts this compounding. As I borrow against it and I set that up as collateral, I can use my money in another asset at the same time. Now I’m actually growing my money inside the life insurance plus I’m also being able to deploy that capital into an investment. Maybe this is an apartment complex or some multi-family properties. So when I look at the ability to use that money to leverage and double dip and do two things at the same time, I’m now even expanding my capabilities further. So this tool is not only able to solve all of these problems for me, it is a strategic use of my capital because now I’m in control and I’m increasing my cash flow because this is growing for me and I’m able to put my money to work in other places. So what’s really interesting is that this connects to investments. A lot of times people will say, well, are you saying I should save all my money and not invest? I think this is a really giant misconception that people think that if we say to use a life insurance policy, that we’re saying, just save your money, because it’s truly a savings’ vehicle. It’s a place to store cash, it’s not an investment, but it’s not at the expense of investing, it’s not, instead of investing. This is a place to be able to store my capital so that I can invest better. So that the investments that I do, if I am using that same capital that I’m borrowing against the policy from I’m in a position where I’m increasing the returns, I’m actually leveraging my cash to be able to do two things at the same time. And so that’s where I see a lot of the ability to marry the concepts because the objectives are really similar between a tax-deferred or I don’t know why I’m forgetting the term-
Brett:
Deferred Sales Trust.
Rachel:
Yes, Deferred Sales Trust, I need to write that down DST. So the idea of being able to save the tax and be able to not pay capital gains tax is really valuable and it’s the same objective that you have to minimize your long-term taxes with a life insurance policy. And so those strategies together can go hand in hand very strategically.
Brett:
Beautiful. So we’re running out of time here. So I want to get Bruce the last word. But before we do that, Rachel, would you remind all the listeners where they can find you and Bruce and how they best can connect with you if they’re interested in learning more about these strategies?
Rachel:
Perfect. Yes. So thanks for asking. You can go to themoneyadvantage.com. We have a whole host of opportunities and resources there for you. We have a podcast which is The Money Advantage Podcast. We have downloads of free guides. We have articles. We have the ability to book directly on our calendar if you are interested in finding out how you can apply these strategies strategically for yourself. We can do anything from infinite banking and life insurance strategies. We also do a lot of alternative investments and we work with you on cash flow strategies. So we have a whole family office model that really helps you to strategically figure out your entire financial life in a way that puts you in the most control.
Brett:
Beautiful. And Bruce I’ll give you the last word.
Bruce:
Well, Brett, I think what people have to do when they’re trying to build uncommon wealth, they have to do things in an uncommon way and that’s what Deferred Sales Trust is. People don’t know about them because they’re not that common and that’s one topic that I think is important for people to understand. What the most real thing is, is that the ultra-wealthy people build teams around themselves. And they don’t think they know everything, they don’t think they have arrived, it’s called the arrival syndrome. So the individuals in our society, most people think, oh, I already know everything. We actually try to build teams and we’re so happy that you’re on our team now so we can refer people to your expertise. And that is the big thing because I’m telling you, you should mimic what the ultra-wealthy people do. And that is that they don’t deploy cash just to deploy cash, they look to minimize taxes legally, they look to a cash flow in investments, and they look for every opportunity to actually get an opinion by an expert that is coordinated with all the other experts they have on their team. So that would be the thing that I’d like to leave with you today is the cooperation with a team.
Brett:
So much wisdom there Bruce, so much inspiration from you, Rachel, and wisdom. I want to thank you guys for doing what you’re doing. I want to encourage you to keep using the gifts you’ve been given to bless others and go check out Rachel and Bruce right now at themoneyadvantage.com. And I also want to thank our listeners for listening to another episode of the Capital Gains Tax Solutions Podcast. As always, we believe the highest net worth individuals and those who help them, struggle with clarifying their capital gains tax deferral options. Not having a clear plan is the enemy and using proven tax referral strategies, such as the Deferred Sales Trust, or perhaps becoming your own bank with Rachel and Bruce is the best way for you to grow your wealth. With that, please rate, review, subscribe, go to capitalgainstaxsolutions.com. If you’d like to get a free consultation to on the Deferred Sales Trust, because if you’re selling a primary home and business, even cryptocurrency, highly appreciated stock, anything that has capital gains tax the Deferred Sales Trust will work for, but we just have to get the time and I need to get there before you close the deal. So with that, please rate, review, subscribe. We thank you for being a part of it. Bye, everybody.
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About Bruce Wehner
Bruce Wehner is the Lead Advisor of The Money Advantage, where he designs and communicates the individualized solutions that help their clients increase cash flow and financial control. Bruce leans on his experience as an educator and varsity head coach, lifelong entrepreneur, and real estate investor. He is a Nelson Nash Institute Authorized Infinite Banking Practitioner who has been practicing Infinite Banking since his parents started his first policy when he was a young child.
About Rachel Marshall
Rachel Marshall is the Co-Founder, Chief Financial Educator, and Content Strategist of The Money Advantage. She is known for making money simple, fun, and doable. She’s currently writing a book about her near-death experience and how it became the springboard for her family’s multi-generational legacy of more than money.
