Episode 214: The Profitability Paradigm: Unmasking Business Blockers, Growing Wealth, and the Power of Whole Life Policies

Join us on this captivating podcast as we embrace failure by recognizing for every level there's another level and celebrate the journey of entrepreneurship. If you've ever felt like a failure or faced the tough decision to close a business or pivot, congratulations, because you're on the right path.

In this podcast, we delve into the secrets of exceptionally wealthy individuals with net worths of $100 million or more. Surprisingly, their key to success lies in their failures. We explore how failure is an integral part of the entrepreneurial journey and how learning from mistakes is the ultimate catalyst for growth.

Discover the concept of business blockers and how they can unknowingly hinder your success. We uncover practical strategies to identify and overcome these obstacles, empowering you to unlock your full potential.

But that's not all! We also talk about an incredible strategy that promises to constantly grow your wealth. We reveal the power of whole life policies, offering insights into how they can shape your financial future and pave the way to prosperity.

Join us on The Profitability Paradigm on Invest in Sqft " as we challenge conventional notions of failure, embrace resilience, and inspire you to thrive amidst setbacks. Get ready to embark on a transformative journey of learning, growth, and ultimately, achieving your fullest potential.

Links and Resources:
Personal LinkedIn: https://www.linkedin.com/in/teresakuhn
Personal Website: http://teresakuhn.com
Company Website: https://100yearrei.com/tag/teresa-kuhn

I was talking with Amanda Holmes about a week ago or so, and if you don't know who Amanda Holmes is, she is the daughter of Chet Holmes who wrote the Ultimate Sales Machine, which is known as the Red Bible in the marketing industry. Unfortunately, Chet passed away a number of years ago, and Amanda has taken over her father's companies.

We were talking about time management, and Amanda made a statement that I feel is so simplistic, but yet we all completely screw it up, right? We make things so much more complicated than what they should be. She said the number one technique for time management, and we've been deploying this ever since.

She said This is to only touch the thing once, so don't keep kicking the can down the road. Don't let things keep coming back up again. Talking about things re re. Engaging with things, touch it once, get it done, get it off your plate, and move on to the next thing. What this does is it allows you to keep moving things forward because basically what happens is if you keep doing a little bit here, a little bit there, before you know it, your bandwidth is completely.

Taken over, right? You are completely using everything that you can concentrate on just to get all of this stuff done that you have in your life. So by getting rid of it, seeing it once, touching it once, addressing it, accomplishing it, filing it, whatever the thing is, that is the way to be able to properly manage your time

I was talking with Amanda Holmes about a week ago or so, and if you don't know who Amanda Holmes is, she is the daughter of Chet Holmes who wrote the Ultimate Sales Machine, which is known as the Red Bible in the marketing industry. Unfortunately, Chet passed away a number of years ago, and Amanda has taken over her father's companies.

She said This is to only touch the thing once, so don't keep kicking the can down the road. Don't let things keep coming back up again. Talking about things re re. Engaging with things, touch it once, get it done, get it off your plate, and move on to the next thing. What this does is it allows you to keep moving things forward because basically what happens is if you keep kicking the can down the road and keep touching things and doing a little bit here, a little bit there, before you know it, your bandwidth is completely.

On invest in square feet, we unlock the secrets of wealthy entrepreneurship. I'm Matt Shields and my mission is to help business owners just like you, protect your wealth so that you can invest passively into multi-family real estate. Have you ever looked at very, very wealthy individuals or maybe even banks, for instance, and wonder how they protect their wealth, protect their business?

No matter if you're looking to enhance your investments, safeguard your assets, or simply increase your net worth. This episode that we're gonna talk about today dives into the realm of achieving financial success. Today we're gonna learn how some of those wealthy individuals and incredibly large banks power themselves into wealth building machines so that we can all do the exact same thing with our businesses.

You, you know, the level of success as I worked on myself and I healed parts of myself and I understood more and more about me. Um, my success grew and that's not an accident. Um, wherever someone is in life in terms of business and relationships, et cetera, it is a direct reflection to the healing and the growth that they, uh, they have within themselves.

When somebody presents themselves with, Hey, I can only reach this level of success, or I can only do this, or I'm struggling with this, you know, it's all about my, my suggestions to them is go inside because only to the level of your healing and your self-awareness is the level of success that you're going to have in life.

And I'm not talking about just financially, but for me financially, As I heal certain parts of myself and as I figured stuff out and as I worked on myself, it's not a surprise that my revenue and my income went up right, and as I became more comfortable in my skin, the world opened up to me because I was not projecting my insecurities and my lack of feeling comfortable in my own self on other people.

As I loved myself, I could love more people. As I accepted myself deeply, I could accept more people. Well, what happens when you can expand your world and accept more people? You have more opportunities. Mm-hmm. Then the question becomes, are we aligned in terms of those opportunities, energetically, values, you know, et cetera.

So, um, yeah, entrepreneurship, you can. Dig a great hole in terms of energy and time suck and distractions. Um, and for a lot of people, I think they, I know it was me, like I worked my butt off n to distract me from whatever pain I was in. Um, but the more people go inside and heal those parts of themselves, I think the more success they have in every area of their life.

Yeah, I couldn't agree more. And just real quick, do you, you know, in your coaching or however you want to, to call it, um, are there any, I guess, steps maybe that you would suggest to be able to start to realize that maybe I have something to, to, to fix or maybe even steps to be able to start, um, you know, that self.

Uh, you know, self realization, self awakening, anything come to mind as far as, you know, steps that you can do to, to start realizing that?

Um, well, for one, typically the, the problem that people think they have is not truly the problem. It's the symptom, right? And so, uh, having some kind of exercise. Or time to reflect where somebody is able to identify, Hey, these are all the items that I think are my problems today.

And then having someone in their life, be it a coach or a therapist. You know, therapy is great looking backwards to reframe and to understand, you know, childhood stuff or experiences that may be traumatic. Coaching, I believe is more about, um, proffer coaching is about establishing objectives. And roadblocks to getting to those objectives, right?

Uh, and roadblocks typically are, Hey, these are my problems or these are my beliefs, or this is where I'm stuck. But those are typically symptoms. Those aren't the problems. So if I think my problem is I can't, um, I can't exceed a certain level of, of revenue in my business. I've hit a ceiling. That's really a symptom, right?

What is the problem that is keeping you from meeting the objective of, you know, increasing revenue? Um, I have a saying that I absolutely love, that I, that I borrowed. I, I borrowed things from everywhere, right? I don't necessarily have original thoughts. I have interpretations of different ideas that are out there, um, that I put through my own filter.

But one of them is for every level there's another double. So let's say there's an entrepreneur who's hit, you know, a, a revenue ceiling of a million dollars a year, right? Um, they picked that ceiling and they're trying to get to the next level, let's say 2 million in revenue while in order for them to get to the next level of $2 million in revenue, there are whole host of demons and devils in that.

Gap that they've gotta figure out in order for their million dollars to now be a new floor and $2 million to be their ceiling.

So for every level, there's another. Issue or things that come up that you've gotta figure out and something that you've gotta change within. Right. Maybe it's a belief, maybe it's a system, it's a process. How you live your life, whatever, in order to break through that ceiling to get to the other level.

Mm-hmm. I love it. I love it. And that's, that's a great, a great way to be able to prepare yourself, you know, another level, another devil. Again, it's kind of a fun way to be able to remember that. You know, this isn't this, you, you should be expecting those blockers and those things as you progress through, you know, your levels of entrepreneurialism.

This isn't like, you know, shit, I'm failing. It's no, I gotta figure this next step out. Right? You know, there, there's always more to figure out as you're, as you're going through. So again, it's a great way to be able to, um, you know, just kind of realize that and keep that in in mind. I love it.

Um, we fail forward, right?

Yeah. It, it, and there really is no failure. You know, these words I'm not crazy about, but they're just rhy and they, they, they're easy to remember, you know, every experience. There's so much to learn from and you just can't quit. You just can't stop, right? Mm-hmm. And so, Hey, you have a setback. Keep going, keep going, keep going, keep going, keep going.

The most successful people are the ones that I've had the most setbacks. Yeah, I work with really wealthy people. I work with, you know, business owners, entrepreneur, entrepreneurs, which sometimes business owners don't consider themselves entrepreneurs, but real estate investors, professionals, middle America people that are super wealthy, considered, you know, wealthy.

Net worth over a hundred million. I can tell you, everyone fails. Everyone has setbacks. There is nobody in the world of money that has never lost and made stupid investments and stupid decisions. Um, it's just, are you learning from it?

Mm-hmm. Yeah, I love it. And, and actually that's a perfect transition into talking about whole life policies and, and that whole thing, which, um, just being transparent.

So we, we set up, uh, policies for my, my partner and I a couple of months ago, I don't know, four or five months ago now, something like that, maybe not quite that long ago. So, um, so this is something that we absolutely see the value in. Um, And I'm, I'm curious as to your definition of what the whole life policy is and why it's different than other types of, um, I guess investments or cash placement vehicles that, that might be used, you know, you know, on the market.

Right. Does that, does that make sense? Yeah, absolutely.

So, um, I, so going back to my career real quick, um, to give some understanding there. So I worked with the real estate developer, um, then went back to working in the more traditional Wall Street type of mindset. But I was a different person. I was an attorney, um, trained to think like a lawyer, and I was looking at all the information from a Wall Street perspective saying, you know, Clients aren't experiencing what Wall Street, traditional Wall Street is offering, and are there financial strategies out there that I could offer my clients in building my business, uh, and my relationships with my clients that could bring them options that the traditional Wall Street model does not offer?

And I went looking in the marketplace of financial services. What, what are those options and alternatives that I could offer my clients? Um, I met a gentleman by the name of Nelson Nash, who is, um, the grandfather I think of, you know, this whole, whole life insurance, using it as a, as a, um, savings plan and vehicle for investing and doing all sorts of things, right?

I met him, became very dear friends. He was my mentor, um, taught me so much and started using this with, with myself first and my clients, and then from there, Um, so I've been doing this a really, really long time, right? Working with, I've had conversations with thousands of people, have worked with the best of the best in this niche in this industry.

And what I've found today is there are a lot of newcomers out there that don't have a lot of experience, so to speak. But see, there's something great here and they've totally complexified, if that's a word. Um, there's a lot of complexity around these policies. What I like to say in keeping it super simple, and I think there's elegance and simplicity, is look, does someone need to save money, have money in a savings account, have money in reserves for real estate investor, CapEx account?

Of course, we all need money that is earmarked for savings from a Wall Street perspective and an investment perspective. There is. A fallacy out there that says every dollar you have has to be working super hard for you and chasing a return. I, I say differently. I say, you need money. That's your last man standing.

You need money on the side, savings, wherever that, if everything else goes to hell in a hand basket, you know you've got that money in reserve to help you for whatever reason. So that money, if you've got it, should be in a whole life policy. And why is that? Because the whole life policy is gonna give you, Advantages, benefits, options that you will never have in a regular savings account.

So if you look at it from that perspective, keeping it super simple, that's it. That's all it is. Now, can you do all sorts of other things with it? Absolutely. But keeping it super simple, that's what it gives you an alternative to savings. That is far superior in benefits and tax advantages and options for your future that you're not gonna get anywhere else.

Mm-hmm. Yeah. And talk about some of those, some of those ways that you can use, uh, a whole life policy, right? Like there, there's, this isn't just a savings account where you pull the money out and spend it, you know, when needed, uh, to buy whatever it is, right? I mean, there's, there's. There's a whole other side to this.

Talk about some of those benefits that,

well, from one, the growth inside of the policy is income tax favored, it's tax managed. Um, we have many clients that set up these policies because they wanna grow their wealth in the strategy that they can pull money out to supplement retirement, and you're not taxed on that money.

Taxes are a big deal right now. Day one, you got life insurance, right? You die, it pays you live. Have some health issues. You can tap into that death benefit to help you with your, your health issues. Um, uninterrupted compounding. Super cool concept. Uh, real estate investors love this. You've got money in there.

You borrow it out to go invest or buy cars or equipment or whatever. That money is still working for you in your policy. Um, so keeping it super simple, those are probably the most, um, popular advantages.

With, with the whole life policy, what would, what would be some things that you wouldn't want to use it for? Right. Because again, we're all human. We have these savings account, we see this money there, and, um, we, we feel we have access to it, so we should spend it.

Right. Talk about about that, a little bit, about that mindset of, you know, I, I, I have the, these funds, I should, I should be spending it. Um, and, and how that applies to the, the whole life policy.

That's a really good question. A lot of, you know, that's, that's very, um, particular to the circumstances of the person who owns the policy.

Everybody's numbers are a little bit different, but number one, everyone should have savings, um, as the last man standing. I use the analogy of a balance sheet. Pull out your balance sheet and give every dollar a job on your balance sheet. And again, most investors think, oh, every dollar on my balance sheet has to give me an roi, right?

Has to chase the return. You are getting a return with your whole life policy, but it is a return that is, uh, very competitive compared to other safe money strategies. You can't compare this to at, you know, you getting, um, Uh, a, a return in real estate in the last 10 years, right? Or crypto if you made money in that or whatever, right?

And it is compe, I mean, it's compelling. 5% income tax free is pretty compelling without risk, right? Mm-hmm. So your safe dollars go there. Now I have clients, I've been doing this a very long time, who've accumulated hundreds of thousands of dollars in their policies and. Just because they have that money in their policies doesn't mean they need to go out and buy a super expensive car that they otherwise wouldn't, um, wouldn't buy if they didn't have the money in the policy.

So I've got a client, um, he loves fancy cars, and uh, a number of years ago he had the money in his policy. He borrowed $150,000 to go buy. A fancy car, which back then was a lot of money today. Now it, you know, a, a almost a regular car costs a hundred thousand. Right. And could he buy? Absolutely. He's got the net worth.

He's got the income, no big deal. But another client who has a lot of money in his policy probably shouldn't go out and just buy the car to buy the car. And there's a lot of conversation in the marketplace around these policies. To like run all of your expenses through your policies and the more you finance, the more money you're gonna make in your policies.

Variations of what Nelson Nash used to teach, but where I think it's a bit irresponsible, and I think this is where the experience doesn't come in. 99% of the people out there do not have the bookkeeping or the um, they don't have the attention to detail in the minutia of what it takes to run all your expenses and run a lot of stuff through your policies.

I tell my clients who bring that up, and I, and I know my clients, I get to know my clients really, really well. You know, my engineers, my CPAs that have that kind of mind, they can get away with it. An entrepreneur who's more visionary and creative, no way should they be involved with that. They're gonna create a mess unless they've got a bookkeeper who can keep up with it.

And that creates an extra expense. So I tell my clients, Hey, keep it super simple, um, and don't do anything exotic. In fact, make sure you respect the policy and the strategy. And instead of spending all that time in the minutia, go make a ton of money elsewhere and just put a, a, a percentage of it into the strategy so that it's there to serve you in the future.

There's so much conversation on the minutiae and the complexities of how these can work. Yeah, you could do that if you've got the bandwidth and, uh, the brain, right. That lights the minutiae. Most of us don't. Mm-hmm. Go chase the money with what you're good at and just build your policies. Yeah. Yeah. Love it.

Love it. Um, talk a little bit about the, like the, the good ways to be able to use the policies, right? Like, you know, we wanna be able to, to have this money grow in itself, right? You can, you can put the money in and leave it there. Um, but what are some, some ways to be able to maximize that, like, Again, we, we've talked about this before, where maybe there's real estate opportunity.

You take the money out for that. The, the money is still in the account working for you technically. Uh, you're going to be able to then make the money on the real estate and then reinvest or re re uh, deposit that back into the policy again. And there's some complexity there, uh, as well as far as, uh, you know, maximizing out your policy

you know, if, if we had a windfall from a, from a real estate investment and we had a policy set up, it might be better to create a new policy so that we don't maximize out that that other policy. Is that, does that all resonate? Like talk a little bit about that, that, that process a little bit. Yes, absolutely.

So every policy does, every policy that's set up has a maximum. I'm, I'm just gonna use some examples. Let's say it's $50,000. We set up a policy for you, $50,000. And you're, you're feeding it. You're paying into it up to that 50,000. If you've got a windfall, if you just sell real estate property, you've got an extra $200,000 that you might come to me and say, Hey, I wanna max out my policy and put that $200,000 in that policy, and I'm gonna say, you can't.

I've gotta maximum 50,000. Now if it makes sense, we can take your 200,000 and design a new policy from which you could position that 200,000. So I think that's what you're referring to there. Yeah. In terms of the great stuff that you could use these policies with. Um, and, and again, after you've got your cash and your cash preserves and you've got enough money to, to protect your business investments, your household, whatever, right?

Anything above that that you've got in the policy. Go use it and invest it. Like in real estate, you know, in the real estate world, you've got flippers, you've got buy and hold, you've got hard money lending, like a hundred different ways you can make money in real estate. And we've got probably most of our real estate investors are dabbling in all of those.

Right. Um, hard money lending's probably the easiest to explain in terms of opportunity. If you've got a hundred thousand dollars sitting in your policy and. You can go get 15% hard money lending. Take it from your policy, go lend it out, get your 15% at the same time, your money is still working for you inside of your policy at the same time.

So you're literally double dipping. Yes, the insurance company is going to charge you an interest to borrow that money out. If done right, you're gonna be earning more. Then you're paying an interest inside of your policy separate from the 15% you're earning with your hard money lending. Mm-hmm. I have clients that do this, have been doing it for a very long time, very successfully.

And talk about double dipping and talk about taking advantage of unin uninterrupted compounding and done right and set up right. You can deduct the interest that you're paying because it's a business expense. Not a cpa, but just conceptually that's possible

to do. Yeah. Yeah, that's, that's interesting. So if, if you were to withdraw the money and, uh, your earning interest over here of the 15% in this, this bank or this, the policy is charging you interest as well.

Um, And, and again, I I, I think I might've gotten this from like the whole bank on you type concept, right? Where essentially you're paying your, you should be paying yourself interest, right? So you're, you're paying interest on the money that you borrowed, but you can pay yourself back, you know, additional interest so that you are making money off of your money that way as well.

Is that, is that, you know, another way to be able to look at it as well conceptually?

Absolutely. And what you're doing is if what you're doing is paying that interest, Back to you over and above what the insurance company is charging you. Mm-hmm. Yes. Mm-hmm. And so that, that gets into some of the minutiae that people get involved with conceptually Absolutely.

All day long. Right. Practically the way you do it, that's a, a conversation. I'd rather not get into the minutia cuz it does get a little confusing. Um, but absolutely all day long you can do that. And that's a lot of what Nelson Nash taught. Uh, in terms of how you can create

additional wealth, generational wealth, legacy wealth, doing business by changing a few things. So, Real estate investors take money from their bank accounts, go invest it. Instead of it coming from your bank account. Have it come from your policy Business owners, you know, let's say dentists buying equipment for a new office, instead of it coming from your bank account, have it come from your policy, right?

You have employees. We've got strategies where you can ensure your employees, give them a benefit and employee benefit. And maximize wealth for the employer business owner. I can go on and on, but I think you get the picture. Yeah. And, and one other thing, um, just, just to talk about high level other things that people can do with these policies.

Um, you can pay for college out of the policies, a much superior plant than a 5 29. You can buy cars, you can, um, buy generators. We had, you know, like 10 years ago, a lot of our clients were buying generators, using money from their policies. Replace roofs, start businesses. Um, anything your imagination can come from if the money's gonna come from a bank account, have it come from a policy and it amplifies.

The opportunities and the options for people. I truly believe, and not because I sell this, remember, I chose going down this road very strategically and I had the critical thinking skills to look at the financial services industry and say, Hey, what opportunities, what strategies are out here that I could offer my clients to give them a better experience with their finances and, and options, right?

So, I come from a place that I chose this path. Truly believing and now knowing with experience, every family, child, business owner, investor should have one of these policies. Every single person should have one. If you think you need a savings account, this. Can act as a savings account that gives you so much more than a plain old savings account can never give you and a savings account typically you'd get from a bank.

You should look into, how much cash value life insurance your bank holds on their balance sheet.

You'd be really surprised to find out they own a ton of this. It's called Boley, bank owned Life Insurance. Yeah.

Interesting. And, and you, you touched on this a couple of times throughout, but I, I, I feel like it might not have necessarily sunk in completely. We've been talking a lot about. Um, people, and, and every person should have this, but businesses can also own this, which you kind of touched on a second ago with the bank.

So any business owner out there, your business can also own this. So, like you were saying, the dentist, you know, that dentist business can actually have this policy and that that business policy is what's buying all the equipment and all of that as well. Um, talk a little bit about Absolutely. Yeah, j just, I mean, same type of mentality or same type of concepts, um, but.

You know, having your business savings account or business holding account or whatever you want to call it, is a policy rather than, you know, having it sit in, you know, some other banking account. Yeah.

Imagine Matt, and I know we've talked about this. Imagine you having a business and as a business owner you have a lot of risk.

You put a lot of time, a lot of energy into building the business, and you go to sell the business. Yes, well imagine that day you go to sell the business. You can sell the assets of the business and walk away and get a nice check, or you can sell the business, get a nice check, and still have an insurance policy with a significant amount of cash value that you separate from the sale you get to keep.

And that policy is going to serve you for the rest of your life. Once you sell that business, you can't start that policy. It's before you sell the business that you can start that policy, build that policy, give a benefit to employees that they can have for the rest of their life. The life insurance.

Most people don't have permanent life insurance. Imagine the legacy that you could be responsible for in that employee's life and, and having a, a permanent death benefit Follow. Their family be gifted to their family. I mean, incredible amount of wealth that can be created by just doing things a little bit differently.

you know, the, the, the seeds that you're planning, um, do not just benefit you and your family, but to the, the impact you can have on an employee's family in terms of giving them. Permanent life insurance, that when they die, that legacy, that money can make such an impact on generations.

So it's such a 360 win-win, win. It's a win for you. It's a win for the employee. It's a win for your, your business overall. It elevates everybody. Yeah. Yeah.

One, one last question then we'll then we'll wrap up here. So we, we just had the. Um, the Silicon Valley Bank, you know, fiasco. Mm-hmm. Uh, you know, a while ago.

Right. And, and these, these technology companies, these companies that are able to generate a lot of cash, uh, would you suggest that a another option for them rather than keeping all of that cash? And even if th this is, you know, an operating account where they're, you know, It's ebbing and flowing in and out.

Right. Is, is a situation like that a, a good use of, you know, creating the policy? Or is this, is this money that should be, maybe not necessarily operational, but you know, again, if you have a, a holding of cash that is, uh, a little bit more static, maybe it's deployed, you know, whatever, every couple of months or whatever, you know, whenever you need it.

Is that a better use of, uh, the policy to be able to hold that? That that cash does make sense.

Absolutely. So keeping it super simple, it should be the reserve account that the business has, the operational account. Can you use it? Yes. That's going into minutia and that's going into a lot of complexity and money coming in and out on a continuous basis.

So I would say that the business should have their operating account and their reserves instead of it being with the bank. Position it over here with the insurance company. It's just moving from one pocket to the other when they need it, they can absolutely tap into it. Yep. Um, and it can give them so many options and benefits for the future.

It's phenomenal. And I know Matt, you and I have discussed it and explored it and we're actually getting ready to start it. Right. Um, and when you saw the benefits, I know you were looking at it going, oh my gosh. Yeah, you, you are carving. A business within a business, why wouldn't you want to leverage and scale your energy, right?

That you've put into building a business. And once you sell that business, you can carve that business out, keep it serving you for the rest of your life, and selling the assets off of the other business. Yeah. It's such a win-win. It's, it's tremendous. Yeah. It's,

it's one of those things that. You almost reali.

Like it's, it's one of those things like, why didn't I know about this sooner? Right? That it's kinda one of those things that are under the radar. So doing our best to be able to get the, the word out there and how valuable these, these things can be. And

it's available to everyone, right? Ev If, if you're, if you're an individual, I'm telling you, should own one, your child.

I, you know, I wrote a whole book on what we did with my son, with his policies and his education instead of college. Um, You, I, I have policies on my parents, right? I own policies on my parents, so got policies on myself, my child, my parents, right? Um, my, you know, business ventures, like everything going through these policies.

Um, so individual family, business owner, real estate investor. So many opportunities and so many strategies and so many things that we can do. And starting super simple, you're saving money. Save it in a policy. Amplify your options. Mm-hmm.

All right, so we've reached the point in the show now where we are going to recap what we learned from this episode, and this is something that I personally believe in. This is a step that we took and we actually are deploying these techniques in our businesses as well as you could hear in this episode.

Theresa told us that we needed to understand that most of the time when we think that we have the problem, that we're only looking at the symptom, we are not necessarily looking at the core of the problem. Theresa used the example of if we feel like we've hit a ceiling, that is not the problem in the business.

The problem might be your marketing, it could be your processes, so that you are running around and trying to accomplish too many things, which then is spreading your time too thin, which is not allowing you to move forward. With things, right? So what we feel is the problem may not necessarily be the problem.

It may just be the symptom, and we need to look outside of that one issue in order to be able to determine what truly is wrong. We then dove into the whole life policies and we learned what an amazing vehicle this is. For wealth building opportunities, unlike normal savings accounts where if you put the money in and maybe it sits there and you're in a little bit of interest and then you take that money back out, that money is no longer there anymore.

It's not earning interest for you anymore. Whereas in these policies, the money that you put in, Does still continue earning interest, and you want to make sure that you pay yourself in interest for borrowing that money so that you're basically making money off of the money that you have already taken out, if that makes sense.

Another amazing thing about these policies is that they all have a death benefit and everyone has a different number that they are going to. Be able to qualify for, and this is all depending on your net worth and your income and, and all of that. But that is a chunk of money that is going to be paid to your family, to your heirs, to your benefactors when you pass away.

But again, unlike other types of life insurance, if you get sick, if you have something that you need to be able to draw on that earlier before you pass away. You're able to do that, so you're able to tap into some of those proceeds that normally wouldn't be able to tap into until after you pass away prior to that again, if you need it.

Teresa's been doing this for many, many, many, many years, and I know that I've, I'm aware of these policies, so I know that I've seen these other blurbs floating around out on the internet about what you can do with these whole life policies. And some of the advice out there today is that you want to run all of your expenses through these policies.

So essentially the, all of the money that you're making is going into these policies and then all of your expenses, all of your living daily expenses, all get taken out of those policies. And Teresa, who again, has been doing this for many, many years, advises against that. Right, because it creates a lot of, a lot more paperwork and a lot more tracking that needs to be done.

So she suggests, unless you have the mind, maybe you're already a CPA or accountant or maybe some type of an engineer who enjoys doing the bookwork, or maybe you have a bookkeeper. You probably don't want to do that, right? So again, this is all about bandwidth and this is all about costs, all of that stuff.

No matter whether you're paying someone that's going to be a direct cost, or if you're doing it yourself, you're gonna be taking time away from whatever your el, whatever your money generating capability is. So in Teresa's mind, you should only be putting money into these. Policies that are essentially your reserve money.

And that goes for whether or not you're talking about a business or you're talking about your personal finances as well. Keep all of the day-to-day, you know, money that you need on a monthly basis. Keep that, keep those expenses out of these policies. And again, consider this. Your, your money that you have set aside for bigger projects or bigger goals or whatever it might be.

These are your reserves. Don't try to run everything through them. It just creates a lot more complexity or minutiae the way that Theresa was talking about it. And one of the things that I have to admit, I have to do this as well. Uh, I'm curious what my bank, how much my bank has in these policies. And as Teresa said, we can check this.

And that is called Boi, b o l i, and it's short for bank owned life insurance. So look up how much your bank actually has. In those policies, and they're doing the exact same thing with your money. So again, this is one of those secret things that the wealthy know to do with their money rather than putting it in into some type of savings account.

This is where a lot of wealth can be generated, and if you want to learn more from Teresa, She can be found at 100 year rei, and that is the number 100 year R E I, which is short for real estate investor 100year@rei.com. Or she also has her own website at Teresa Kuhn, which is T E R E S A K U H N.com.

And don't forget, if you want to understand what the wealthy do, head over to invest in square feet and sign up for our newsletter. We reveal some, some of the outtakes from our guests on that newsletter, and that is also how you're going to find out about the real estate or investment opportunities that we may also.

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Episode 214: The Profitability Paradigm: Unmasking Business Blockers, Growing Wealth, and the Power of Whole Life Policies

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