Easy Street
Two comedians walk into a financial planners office –
Groucho Marx:
“My finances are rotten! I’ve been bustin’ my hump in Hollywood all my life, and the thanks I get is a capped salary on each movie with no benefits!”
Financial Planner:
“I’m happy to help you, Mr. Marx – May I call you Groucho?
What are some of your goals?”
Groucho:
“Well I’d like to join a nice club, but I’m not sure I would want to be part of one that would have me as a member.”
George Carlin interjecting…
George Carlin:
“Ultimately, there’s a Big Club out there that none of us are a part of…
It’s the same club they use to beat us over the head with!”
I thought I’d use that little scenario to illustrate how I once subscribed to these two laughable philosophies on life and finance.
The inability to crack the code of prosperity usually leads to the same kind of cynical humor bordering on despair for folks like you and me.
The only two options presented to me were the drudgery of being on a 9-5 Cash Carousel.
Or life on Easy Street, with Beach Vacations and a View from the Top.
Anytime of the day or week, I could open up the classified section and find a job…
But no one ever gave me directions on how to get to Easy Street.
After many years of my so-called career, and countless conversations with financial planners, I learned the secret.
It surprisingly has very little to do with the power of positive thinking.
Although a little optimism can never hurt.
How the Rich Keep Getting Richer
What I’ve termed as “Easy Street”, is really what we know of as wealth personified: celebrity, glamor, glitz!
Maybe a viral post that can lead to your brand making millions.
But the reality for most of us in the know is much more subtle than that.
First, let’s make the distinction between wealth and riches.
To be rich is simply to have a large lump sum of cash at your disposal.
No more, no less.
This is why it’s not really a misnomer when they say someone can get rich quick!
Lottery winners and athletes who go pro literally get rich overnight.
Now, wealth is completely different.
You can be wealthy without being rich.
Just as you can be rich without being wealthy.
Wealth is determined by the amount of money generated from a business or an investment that can replace earned income on a monthly or yearly basis.
So, if I only need $10,000/mo. to live on and my business generates that for me, with or without me having to work at all, then I am by definition a wealthy individual.
Now on that kind of income I won’t be purchasing a yacht anytime soon, but it can be a major leg-up for most people.
While $100K is a decent chunk of change, it doesn’t go as far as it used to.
Particularly if you’re the average Middle-Income American who wants to live debt-free.
That’s why we’re going to focus on the strategies that enable the rich to become richer no matter what the dollar is doing or how the economy turns.
The Millionaires Club
Before we segue I have to make a confession…and its this…one of my guilty pleasures is watching Reality TV shows!
As an early adopter, I got on that train back in the 90s.
And like witnessing any car crash or train wreck, I haven’t been able to take my eyes off it since, regardless of how cringe it becomes.
Why do I bring this up?
Well, one main reason –
Whatever your personal feelings are about Paris Hilton or the Kardashians, they are the most obvious examples of generational wealth that we currently have in the media.
We can go into examples of others, but I want to just stick to the people who are known due to their obvious wealth and nothing more.
They’re part of the Millionaire’s Club of generational wealth…maybe they’re part of the 1% or 5%; maybe their wealth runs into the billions…it doesn’t really matter either way, since after a certain amount it all becomes meaningless.
The point is that, unlike the average person, they never have to work a day in their life if they don’t want to.
Whether you think they’re marketing geniuses, or only contributing to the cultural rot of society, money has become the great equalizer in this instance.
And that’s all it does in every case.
It makes you more of who you are…
Question is, who might that be?
Who do you wanna be?
Who would you be with an Ocean of Cash at your disposal?
Now I like to think that I’m a smart guy.
I read books, I meditate, and I like to think that I have some pretty well-thought out opinions.
But I once read a book many years ago called, Are You Dumb Enough to Get Rich.
And I realized that none of my high-falutin’ fast-talk mattered a damn!
Will the Kardashians win any prizes for world peace anytime soon?
Hell, no!
But who do YOU wanna be!?
As I always say, you don’t have to come from a rich family, to create a rich family.
Financial freedom looks different for everyone:
How would you just like to buy more time?
Never answer to a boss again.
Start that business.
Engage in more hobbies.
Devote yourself more to charity and philanthropic causes.
Believe it or not, you don’t even need to buy Gucci or Chanel with your money.
You could rotate between the same seven different outfits you’ve been wearing for the last 20 years!
The point is, the money is in the bank, whether you’re living in a mud hit or a mansion.
Driving a Ferrari or an old ‘98 Accord.
A River that Never Runs Dry
It’s time to answer that final lingering question…
How to make this all happen!
It was a question I asked myself as I was transitioning from my long career as a chef for 33 years.
How do I maintain the same level of income and lifestyle, without missing a beat, I asked myself.
At the same time, I asked how I could not lose money while in the process of building a legacy for the future.
Insurance as the Answer
One of the techniques I learned around generational wealth accumulation is the use of Infinite Banking.
And the main vehicle for that ride to Easy Street is Infinite Banking through Cash Value Life Insurance!
As in all other areas of life, there are different rules for the rich than there are for the rest of us.
Most of the life insurance policies we’re familiar with are Term Life Insurance.
Of course, this is inaccurate, because it’s a death benefit more than a coverage for hazard or mishap.
At best, it just cushions the blow for your loved ones when you’re gone.
That is, funeral expenses, and maybe a little to live on for a while.
Let me tell you, Cash Value Life Insurance is a whole different animal!
This is a strategy that the ultra-wealthy have been using for over a century.
The buy-in is more expensive than term life, but it has to be viewed more as the purchase of an asset rather than a series of one-time deposits into a rainy day account.
The best metaphor is the Cash Cow that can be continually milked.
Unlike term life, the owner of the policy can borrow from the insurer against the policy.
It’s usually a 1:1 ratio.
The cash remains in your account as collateral against the loan, while the policy still continues to grow from your monthly feedings.
So you can proverbially take some of the milk that your cow has been producing and sell it.
Borrow some of that money to start a business.
That’s what Walt Disney did when he couldn’t find investors for Disneyland.
Use it the way that most banks in the world use it.
The majority of the world’s banks have 25% of their revenue tied up in Cash Value Insurance Policies. It’s the number one asset on their balance sheet.
Where do you think most banks get the funding to cover home and auto loans?
Do you think the Fed is just printing out Benjamins to hand over to the banks?
Not a chance!
And guess what, everytime you make your monthly Mortgage payment it circulates back into that cash pool, both paying off the bank’s policy loan balance, while at the same time infusing the policy itself with additional interest that accumulates.
Some banks even have a protocol requiring all key executives to have Cash Value Insurance Policies through them.
What’s the use of one cow when you can expand into a Dairy!?
This is the river that never runs dry, which is why you will see the pattern of many mega-businesses naturally easing into non-speculative ventures such as Real Estate and Banking, all while using Insurance as leverage.
Sailing Away
It’s easy to make rookie mistakes when you’re just starting out – like the confusion of riches over wealth.
The image of “Fool’s Gold” is all we really have these days.
If you’re reading this, you know it already.
You know the long-term answer isn’t a better corporate or sales job.
The answer is to get smarter, to educate yourself gradually, by non-academic degrees.
I started BBig Financial Solutions exactly for that reason.
I can be the example, because I’ve been through it, and I want to help educate you through the process of growing your wealth with us.
Everything we’ve talked about so far – mindset, franchising, real estate, life insurance – the success or failure of them all hinge on how well you know and apply these strategies.
With another year ending and this new one beginning, you get to decide if you want to BBIG.