Do you hate the thought of working past 55 or 60? Do you hate not being able to live the life you deserve today? Do you hate not knowing what your financial future looks like? It's time to stop doing what you hate, here's your host, Mr. Harold Green.
(00:20): Oh, well, hi everybody. This is heroine, Brina, Brightree financial, and it is time to stop going. What you hate? Oh, y'all doing well. I'm doing pretty good. I'm excited today to be sharing with you. I'm excited and thankful for the opportunity to
(00:38): Be bringing you guys today's show and the title is leveraging your life insurance. And there's a lot of things I want to get into in regards to life insurance and how you can leverage it to your benefit and what it could possibly mean to your family for future generations to come. But I have some things that I want to get off my chest. And so if you guys can bear with me for a little bit, I always love sharing with you my life, how I think, you know, where I'm coming from, why I do the things that I do, just so that if you don't yet know me and you've been listening and you know, you start listening to the show, you can just kind of get a sense of, you know, who I am and where I come from and my background and things like that.
(01:29): So I want to talk to you about something that that has happened, and I'm a little bit upset about it. And if you can bear with me and I'll kind of share with you guys what it is now, I don't see myself as being a, a rocket scientist or anyone super smart, or a supremely intelligent human being. But there is one thing that I know that I have because my momma told me boy, you need to make sure you have common sense and that you use your common sense. And this week I feel that my common sense is being assaulted. My, I felt like the intelligence that I have is being assaulted. Now, I don't live in the state of Georgia, and I really don't know what those folks are going through, but a bill was passed stating that you need to have an ID to vote men Parson or absentee.
(02:39): And some people have come out and said that that having to show ID is racist. Now, a lot of you folks with common sense, understand that that's just political hyperbole, but you know, some people actually believe that they believe a lot of stuff. Why? Because they are not simply using their common sense. Now I can think of maybe 10, 15 different reasons why you need to have an ID. And as a matter of fact, I don't know anybody who don't have at least two or three forms of ID. I have a golf ID. I have a driver's license. I have a passport and maybe some other forms of, of ID. Now I've had to present these forms of ID at banks. When I open up a bank account, when I buy I can't and a beer, I need to show an ID. If I buy a pack of six, I need to show proof of age.
(03:44): If I try to cash a check, I need to show some proof of, of ID. And that just kinda disturbs me. So thinking about it, I bought my ticket to go to a business conference in Florida. And Delta came out and said, Hey, this is racist. So Delta, I got to show my ID to get on your plane. And your employees have to show their ID just to come to work and I can go on and on and on. And this is what I want to get into two. I want to get into something about knowledge, okay? And I'm a Bible. I love reading my Bible. I love learning. And I'm going to take you to the number. One reason why people in this world all are destroyed and they are destroyed because a lack of knowledge, that's it not a lack of opportunity, not a lack of diversity, not a lack of equality, but it starts primarily the root the cause is a lack of knowledge.
(04:53): And Hosea four six says, and the new international version, my people are destroyed from lack of knowledge, because you have rejected knowledge. I also reject you as my priest because you have ignored the law of your God. I will also ignore your children. Now that's old Testament. Now it was brutal. And so there is a penalty or rejecting knowledge. And I want to get into the show about leveraging life insurance and life insurance in general, because there is a lot of knowledge out there about life. If insurance and I tell you a lot of it is being rejected. Just like there's a lot of knowledge out there about being, you know, invested in the market or invested in any type of asset, but it is being rejected. So are you guys ready to get this? All right, let's go one, two, three less. Get it.
(05:50): Now I want to talk to you about one of the designations that I have that qualifies me to be sharing with you about life insurance out of leverage it and why it is so important. And, you know, I'll, I'll tell you straight up. I think I bought my first life insurance policy when I was 20 something years old. You know, I used to work in the home office of a life insurance company. And for me that was, it was an exciting thing because I got to learn a lot of stuff. And one day as I was going through some accounts and the system, I stumbled across a life insurance policy with a death benefit of $9 million. Now here at the time I was 27 years old. I'm like, God, who needs a $9 million life insurance policy. And so when I, when I started looking at it and it's just kind of like in the database, and sometimes you have to go on and do certain things for certain accounts.
(06:45): And I found out who this person was, and I knew this person, very influential person. And I looked at how much they were putting in the policy. And I think it was like $75,000 a year. And at the time being 23, I made like $25,000 a year just being in client relations. I'm like, Oh my God, this person is putting in three times what I make, who can afford to do that. And so, you know, once I realized who this person was and what they did for a living is like, Oh, okay, this makes sense. And what happened was that started me on the pathway to earning one of my designation scholar chartered life underwriter, which is a very, very, very interesting designation. There's a lot of cou is out there. And I think they're, they're one of the most underrated designations that an individual can have along with some other things.
(07:26): So the certifications for the courses, basically fundamentals of life insurance planning, it's these books are, I don't know, four or 500 pages, and they're all self study and you got to read them. And then you got to go take the exams. It's about a two hour exam or whatever, an hour and a half, something like that, you know, and you got pass with it. I think it's a 70. And then you have individual life insurance. You have life insurance law by the middles of estate planning, planning for business owners and professionals. And then you had three electives that you had to choose from, which are financial planning process and environment, income, taxation, and then planning for retirement needs. Now, a lot of this went into actual financial planning, but then it also tied in life insurance. And then how life insurance is a valuable tool in estate planning and then also financial planning.
(08:13): And so one of the things that people do is they say, well, life insurance is too expensive. And so therefore I'm not going to have it. Or they say life insurance. I heard that I should buy term insurance and then invest the rest. You know, there's a lot of different strategies out there, but if you don't have a set financial plan, how do you know which life insurance policy is best for you? So going back to my situation again, when I was 23 years old, I think I bought my first life insurance policy. And then I bought one more than I bought one from wife and I started buying for my kids. And then I think today I have about total. I think we have 10 or 12, maybe even 15 life insurance policies and our family and my kids have at least two or three, two, I think.
(08:51): And then my wife, now we have, I think, five each or something like that. Or, and so why did I buy so much life insurance? And so one of the things I realized was that I'm not going to be making the same level of income forever based on how I live my life. My income is supposed to grow and I'm supposed to have more money. And so with that in mind, I looked at that and said, wait, I need to have places to hold, hold this money. And so I built these life insurance policies for myself that over time I can fill in these buckets that are empty inside of my life insurance policy. And so there is a base premium that I have. And then there is a rider attached to the policy, which allows me to go back in and add in up to $25,000 a year based on what these policies can technically hold.
(09:39): And so for me, I was like, all right, so I know I don't want to die broke. And I know I'm going to have an estate planning issue. If I don't have enough life insurance to cover all of the things that I'm going to leave behind to my kids, because they do have exclusions and it gets like 10 million or something like that. So I can give my money to my wife. And then, you know, she's, you know, that gets excluded from the state tax. And then from there, she gets to pass down so much to my kids without having to pay taxes on that. And so, but my wife is a foreign national, and she's not a us citizen. So what that means is I had to set up a special kind of trust just for her and then make my son the trustee, because she's not a United States citizen.
(10:17): And what's so complicated is if something happens to me, my wife is not allowed to take that money out of country. That money has to stay in the United States. And so if she moves back to Japan, my son would be required to send her money to live on and do whatever. So, you know, it can be very complicated, but there is enough life insurance in my estate that she would be able to wind up my company and take care of everything that needs to be taken care of. So with that being said, life insurance is extremely important for one simple fact. Now I'm not just going to say life insurance. I'm going to say permanent life insurance. I'm going to say life insurance that builds cash value, cash, value, life insurance. Now I'm going to take that a step further, and I'm going to say dividend paying whole life insurance I'm, I'm sold.
(11:10): I've seen so many different types of policies and my job before becoming a fiduciary advisor and another firm was reviewing life insurance policies. That's all I did every day for three or four years was reviewing life insurance policies. And I saw how these plans were set up on. I saw how they were so flawed that it should've just been illegal, but the situation was, these policies were not bought. They were sold. They, people were sold. These life insurance policies had no clue how they operate, but everything sounded good. The presentation was good and they just kind of like, they bought them. And so when I'm interviewing these people, why don't you buy this stuff? Well, that was my, he sold it to me or we got it from him or her, or, or whoever sounded good at the time. But they told me this. They told me that.
(12:04): And I said, yeah, that environment would have stayed the same over the next 30 years. Yeah. Were the same was true. But here's the thing about financial environments. They always change. And in my last show, we talked about situations awareness, right? So right now in this country, they are talking about changing how things are done in regards to taxation and what will will happen to your estate upon your death. And these are very important things that you need to understand. And I think I'm going to go out on a limb and I'm going to say this because I have the cou and I've seen tons of life insurance policies over my years. And I've seen how their tax, I understand how they're taxed in and out. And it is this. I don't think that government will ever again make large fundamental changes to how life insurance policies work on the insight in regards to taxation and things of that nature.
(12:56): Why? Because life insurance is where a majority of the banks keep their tier one cash reserves. Now what are tier one cash reserves, tier one cash reserves is the money that banks keep in reserves for the money that you're supposed to have in your bank account. So say for example, they're allowed to loan out 95%, roughly 95% of the cash that comes in the other 5% goes in and to reserves. And that's why when you go in and you say, Hey, give me $300,000 in cash. They looked at you kind of crazy and like, Hey, sorry, we ain't got that right? No, wait, you're a bank. Well, no, you've got to come back tomorrow or whatever we tell you, because basically the banks have to go borrow the money from the fed overnight. That's what the overnight funds fed funds rate is. Right? Because they don't have it.
(13:41): They got to go get this money out of different places in order to put it in there to balance. But I don't think government is going to change that because if so, they're going to be hurting an entire financial network and they understand that I'm going to go out on another limb and say, I don't even think they are going to change how they are dealing with the long-term capital gains situation. I think a lot of stuff that we're hearing is just hyperbole and the government pandering to their base, to the people that are not investing in the market. And this is, and here's a very sad thing. I think it was like 50% of the people in our unit in the United States do not have money in the market. And I'll probably say 50% of the people in the country have no type of investment at all.
(14:27): Whether it's a life insurance policy or a rental property, or maybe even, even a home and having a home is one of the basic investments. Some people just, and life doesn't work that way for them. Okay. But having a permanent life insurance policy, we'll do a couple of different things for you. Number one, if you build cash value inside life insurance policy, it will give you the asset protection that you need in case something happens to your other assets or you get sued. So we're looking at it for asset protection. You can have a million, 2 million, $3 million in cash value. And that money can't be because you are in a contract with the life insurance company. So no one can come and say and make a claim against your cash value because doing so would cause the life insurance company to violate the agreement that they have with you inside of the policy, because your cash value is guaranteed.
(15:25): The only institution that can come after your cash value and your life insurance policy is the United States government and the form of liens liens, because you're not paying your taxes or whatever it may be. They can put a lien against the cash value inside your life insurance policy. Number two, having Pascha value inside of a life insurance policy will give you the ability to leverage and borrow money against the values inside of your life insurance policy. And I've seen that many times where you would use that as a lateral for business loans or whatever it may be. Or in some cases it could be for mortgages or whatnot. I've seen things like that before, and basically the cash value belongs to the lending institution until you repay them. Okay. And so that's a very interesting thing. And I'll kind of leave you guys with this.
(16:21): I've used my life insurance policies. Many times I've used it to pay, you know, tuition for my kids college. I've used it to pay for cars and things like that. I've used it to invest in the stock market, and this is all all done because of the, the knowledge that I have. And you know, you guys don't have to take my, my word for it. You can also go out there and do your own research. And I would almost beg you and say, you probably shouldn't be thinking about paying off your mortgage unless you've had amount of money in cash value inside your life insurance policy. And for me, what I do is I use my home equity line of credit and pay for my life insurance policies for the most part. And because I'm, I'm leveraging my future revenue, I'm leveraging my future income to put that money inside of my life insurance policy now, because it can give me dividends and different things like that.
(17:21): Yes, I pay a little interest on the home equity line of credit that I'm funding my life insurance policy with. But if anything were to happen to me more while my wife would easily pay off that home equity line of credit. And so if I know I'm going to be working for 10, 15, 20, 30, more years, then for me, it makes sense to leverage my future earnings and not necessarily rush to pay on debt because I would probably be killing the goose that laid the golden egg. In other words, funding, life insurance funding, my investment plans, and then allowing those things to grow and then pay back any debt that I owe because I have leveraged future revenue. I think it's a brilliant thing for my financial plan. Now, if that's you, and you're not sure which strategy you should be implementing or what route you should potentially take, I'm going to tell you, go to my website, retire now, retire while.com and just fill out some questionnaires and whatnot, download the rapid retire brochure, or just give me a call (808) 521-4401.
(18:22): And then let me help you build out your life insurance policies and a manner that makes sense for your long-term financial plan, whether it be for your estate planning situation or to fund cars, or to potentially fund a business, or, or heck just even fund your five to 10, 10 to $15,000 vacations every single year. There's some amazing things you can do with these life insurance policies. And they will allow you to accomplish what I desire inside of rapid retire and the cash reserve system of dual purpose dollars money doing more than one thing at the same time. And I'm going to tell you guys, money is a force. Money is a force and money needs to be put to work. Money cannot be stashed idle or, or thrown in a hole. It has to be put to work. And another reason why people suffer financially is because they lack the knowledge to put money to work.
(19:18): You don't have to have a finance degree from Harvard to understand how to put money to work. There's simple things that you can do, but the basic place, I think everybody should start is an a dividend paying whole life insurance policy. Maybe you can't afford that much. That's okay. You start small. And then you begin to build and build and build and build and build. And this will allow you over time to leave a legacy to not only your children, but to your children's children. And later on, we can get into a 72 teas, which is a way to distribute money out of retirement plans early to pay for life insurance policies. I've done that before. And so that's a very complicated thing, but it can be done. I make it simple for my clients who want to do that. So if you want to know more, get in contact with me and thanks for allowing me to share with you guys, how you feel. And by the way, if you buy life insurance policy, you got to show me your ID because it's part of the anti money laundering rules. And so everybody thank you for listening. And until next time, one, two, three, let's get,
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