Trying to Keep It Short
Here is my best effort to explain the most important aspects of growing our money and reveal the sequence of actions that anyone can take to eliminate risk, explode their results, and enjoy more peace of mind.
This is the *summarized (*as short as I can trim it down) document with the exact strategy that I was taught, and then executed, to take our financial situation from *spending more than we were making (aka *The Beagle) to accumulating money, buying our debt back, and building multi-generational wealth.
This is what I did to become *The Doberman. (*The Doberman; being able to pay all of our bills every month and have plenty of money left over)… and then after becoming The Doberman, exactly what I did to explode the results of growing our money!
Simply
So to become The Doberman, we simply stopped paying ANYTHING extra, or more than what was required to be paid, to every one of our bills and debts every month.
Hahaha… I’m laughing at myself as I re-read the wording I used, saying that “we SIMPLY stopped paying anything extra, or more…” there was actually NOTHING “simple” about doing that!
As a matter of fact, full transparency with you about this; it was actually EXTREMELY difficult to ignore and not do anything about how much money we were paying to interest every month!!!
Long Term Goal
During the lessons from my mentors, I started to understand and truly believe, that the long term goal, accumulating money… which would be our resources (pool of money) for the rest of our lives and our children’s lives, was so much more important than the short term focus on the amount of interest that we were currently paying.
This new perspective is what fueled me and what I decided to stay focused on!
Really Accumulating Money
As a result of this new strategy, not paying anything extra, Eileen and I started accumulating some very substantial money, after we stopped making ourselves poor by hammering away at our debt every month.
It also brought about a feeling of relief to us as it felt really comforting having a bit of an emergency fund available.
Where
One of the most important strategies, I’ll even argue that it might just be THE most important strategy that I have ever learned, would be; where to put, hold and accumulate money.
Tax Qualified Plans
I never was convinced to contribute to any tax qualified plans, aka 401k, 403b, IRA, etc., due to the risk, taxes, and the fact that no-one was ever able to answer exactly how much I will have at retirement time.
Invest
The few times that I was convinced to “invest” because “that’s what everyone does” I did so through “trustworthy” friends and “professionals” … and I learned a great lesson that cost me almost EVERYTHING. I will never do that again!!!
Safe
The only safe place that I ever knew about, to put money into, was a savings account.
Blow My Mind
So after my mentors help Eileen and I shift our focus from attacking debt to accumulating money, they blew my mind… again, with this lesson:
There is only one pool or resource of money in the world. There are only two ways for us to access money; 1) through a bank or 2) through an insurance company.
Well I already knew about, and of course had been using, the bank to access money. That never excited me. (Okay, anyone that knows me knows that one of my favorite sayings is; “I extremely dislike banks!”)
Insurance Company?
… but access money through an insurance company??? WHAT?
I was totally clueless about this and all ears! So my mentors fired up one of their favorite lessons and knew that it was going to blow me away!
The lesson was diving into an overfunded participating whole life insurance policy from a mutual company. (To keep this meat and potatoes and not dive in too deep here, you can dive in really deep to the breakdown of this type of a policy here.)
I could not believe how this type of policy worked and performed!!!
Never Heard Of
I could not believe:
- there was value in it that I could borrow from immediately
- it is guaranteed to grow
- its growth was not taxed
- there was no risk
- even when I borrowed from it, it would still grow AND I would still get dividends (my own father wouldn’t believe me when I told him this)
- loans taken from it are untaxed
- I could always see exactly how much is, and would be, in it
- loans taken from it don’t even need to be paid back - think retirement
- benefits paid from it are untaxed
Mind BLOWN
After the lesson I was speechless! Yup… me… speechless!?!?
My brain was too busy trying to process all of this new information and questions were circling around and around in my head.
WHY had I never seen anything like this before in my life?
If this is as amazing as I believe it to be, why doesn’t everyone know about this?… and why isn’t everyone doing this?
Then my mentors broke the long silence, because I’m sure they saw smoke coming out of my ears trying to process all of this, by asking me to share what I was thinking.
Too Good To Be True
“What’s the catch?” was the first thing that came out.
“No catch” was the reply.
“Why isn’t everyone doing this?” I continued blurting out my questions and just as quickly they answered.
Because this information has the ability to completely change the financial landscape… and who do you think has the most to lose if this information goes viral?
Who controls what is being taught in school?… and without getting on my soapbox and with trying to keep this summarized, let’s just say that I was one hundred percent all in and on board to move forward with this strategy!!!
My Promise
A bit of honesty before moving on… One of the promises that I was asked to make from the mentors that had selflessly spent their time, knowledge, education and experiences with me, was that I would share this with as many people as I could from the mindset of paying it forward.
I accepted and without hesitation agreed to join their mission, just as I ask you to join, as you begin to understand and see the phenomenal advantages of this information and strategy. With this information we can help free people from being in debt to someone else and only be in debt to themselves!
Do Ours!
So after a few months of Eileen and I enjoying the accumulation of all this money, from NOT attacking any of our debt anymore, I reached out to one of my mentors to have some illustrations designed. I wanted them to design the illustrations to our new financial position.
So Excited
I can still remember how excited both Eileen and I were as we reviewed these illustrations together. To see specifically how our money was designed to be guaranteed to grow, without any risk or tax liability… well, I was still in disbelief that something like this was even possible!
I was so happy about the fact that the same money we were using to grow our wealth, we were also using to structure a life insurance policy on me, for Eileen’s protection.
Now finally I felt relieved that in case something were to happen to me, my beautiful wife Eileen would be taken care of. I was so proud of myself as I had learned how to “leverage” our money, which simply means that we used the same money to accomplish two things!!!
LOVED To Fund It
As our policy was being finalized to be placed in force, I don’t think I ever loved writing out a check as much as I did for the one for that first policy premium.
After our policy was placed in force, I couldn’t wait to log in to see how much we had available for loan.
You see I learned another lesson from my mentors while we were waiting to get our policy in force; converting debt to wealth or, as I like to call it, Buy My Debt Back!
Debt: New Perspective
Debt itself isn’t bad, it’s only bad if YOU don’t own yours! Debt creates wealth… right Mr. Banker?
I was sick of making Mr. Banker rich! For the last few months we had switched from attacking/paying down our debts (giving all of our extra money to the bank(er)), to increasing OUR own money supply… and the amount of interest we were paying was sickening.
It was time for me (and Eileen) to start putting some of this money/interest into our own pockets!!!
Which Debt Can We Buy Back
I logged into our new policy to see how much cash we had available for loan.
Then I looked at all the loan and debt balances we had to see if any of them I could buy back with the cash available for loan from our policy.
“What do you mean by… and why do you want to buy a loan or debt back?” EVERYONE always asks. I’ve got a deeper dive about this here…
Becoming The Banker
The short answer is that most people would love to have every dollar of interest that they ever paid back in their own pocket… I see you smiling.
This is what we are teaching, my mentors and I.
You can keep making yourself broke(r) by trying to payoff every debt as fast as possible, (reminds me of the Whack-a-Mole game) or… you can learn how the banking business works and become the banker.
Banking is THE Most Important Business In The World!
r nelson nash
My mentors always say; Everyone should be in two businesses-the one in which you make your living and the other should be the banking business. The banking business is the most important!
Interest Now Going Into OUR Pocket
I requested a loan from the insurance company, guaranteeing it with the cash value of the policy.
I paid off the loan AND immediately structured a new loan for myself, using the loan balance that I paid off, to continue making the payments to myself.
Every month I send the loan payments, principal and interest, back to the insurance company to pay back the loan I took from them.
DISCIPLINE
After I paid back or accumulated enough money to buy back another debt or loan, I again requested another loan... to buy back another debt or loan.
I structured another new loan in my program using the loan balance that I paid off to continue making the payments to 'myself' with.
Every month I send the TWO loan payments, principal and interest, back to the insurance company to pay back the loans I took from them.
Debt Converted to Wealth
What’s happening? The monthly cash flow of these loan payments have now become assets and recycled money that I can use over and over and over again.
Instead of thinking and acting like the borrower, I am now thinking and acting like the banker, which has now completely changed my… our monthly cash flow!
The lesson
What I learned:
- Aggressively attacking our debt made us poorer
- Somehow my original focus of accumulating all of my money got switched to giving all of my (extra) money to the banks. (I was justifying this because of the amount of interest I would “save”.)
- Focusing on long-term financial goals is much more important and profitable than short-term.
- Where to put, hold, and accumulate money completely changes financial strategies and focuses.
- How to leverage money, make my money do more than one thing at a time.
- There is more than one way to access money.
- There is another safe place to put/hold money.
- I could become my own successful banker if I stayed disciplined.
What's the point
There are two types of people in this world; 1) The Borrowers and 2) The Bankers.
Which one are you and which one do you want to be?
I was The Borrower. If I can do this, you can do this.
We have all been misguided and lied to about true financial education, clearly substantiated by the ‘do as I say and not as I do’ bankers.
Debt is bad… get rid of your debt as fast as you can… pay every extra dollar you have to the banker every month so you can save all this money that you are paying to interest… in the mean time you are doing little to nothing to accumulate your own money.
That was MY story.
Banking is THE MOST IMPORTANT BUSINESS IN THE WORLD, so why wouldn’t we learn how it works… it’s really not that complicated!
Didn’t you have a piggy bank or a shoe box when you were little?
I absolutely love something that one of my mentors told me about what I am trying to share here; This is actually a very simple concept, which in itself is a problem, because sophisticated people over-analyze it and completely miss it!
Let’s not over-analyze it and miss it. Let’s take charge of our own families finances.
For Your Best,
Dad
P.S. I am indebted and so grateful to the handful of mentors and an author who unselfishly shared this information with me and completely changed my perspective of money.
I am not the easiest person to teach, so the time, patience, lessons, stories, classes, personal attention and care that I received from these people… well, I don’t think that I will ever be able to pay them back as they truly deserve.
I did promise to pay it forward and share it with as many people as possible. I hope that this information blows your mind and changes your financial future as much as it did mine.