Farming Without the Bank Podcast

I had the privilege of being on the Barn Talk podcast a year ago and want to share that with you guys today. Enjoy! Audio Production by Podsworth Media - https://podsworth.com

It's called "infinite" for a reason, and that can be very hard to see when you are only looking down your lane. What are you using money for that you could actually be using the infinite banking concept for? Is it college, farming, rentals, braces for the kids, or something else? I challenge you to not only take the blinders off but get the book "Becoming Your Own Banker" and dive in. Audio Production by Podsworth Media - https://podsworth.com

Today we talk about: Are kids' policies better than adults' policies? Am I just selling you something? Should tobacco users forget about having a whole life insurance policy? Should your premium be a certain percent of your gross income? Can you retire on your cash value? Audio Production by Podsworth Media - https://podsworth.com

Regardless of what you think, the bank has control, and you are the employee of the bank. If they call a note and you don't have the cash to pay that, they are in control. You need to know your numbers or they will take an opportunity to manipulate you. Audio Production by Podsworth Media - https://podsworth.com

This is a common question that I hear, because people think the insurance companies are stealing money. Why? I have no idea... but let's address what they *actually* do with your money to ensure the death benefits get paid out. Audio Production by Podsworth Media - https://podsworth.com

Today we talk about loan interest as a tax deduction; being debt-free but having policy loans; 1035ing cash value; loans for cash flowing assets; and the idea that life insurance companies are banks. Why are these ideas misunderstood or inaccurate? Audio Production by Podsworth Media - https://podsworth.com

Do you have the cashflow to retire, or are you going to live on a prayer? It's a proven fact that people with money live longer. Start looking at your numbers and count inflation. Audio Production by Podsworth Media - https://podsworth.com

Let's dig into how loans are treated. The best part of IBC is being in control, the worst part of IBC is being in control of your loans. The company treats it as one loan; they don't question, and they don't care. You are the one who has to figure out how you want to make it back. Audio Production by Podsworth Media - https://podsworth.com

Here is an example of why Uninterrupted Compound Interest is what you want when looking at interest on anything you're saving. Many talk about compound interest, but they don't talk about what happens when it's interrupted. Audio Production by Podsworth Media - https://podsworth.com

You all liked my myth busting before, so here's more! I'll keep the tally rolling. Today we smash myths 6-10! 6. Whole Life insurance is bad because you don't get cash value and death benefit. 7. It's not an IBC policy. 8. It's about a Return on Investment. 9. Dividends are from overpaying on insurance. 10. Fees in Whole life. Audio Production by Podsworth Media - https://podsworth.com

So many people hear a 30-second clip of me talking about successful farmers and think I am an idiot. Yet, that is what I see. I see success because those looking find me and want to learn. Those who spend their time just scrolling are crying in their coffee rather than looking for solutions. Audio Production by Podsworth Media - https://podsworth.com

How much you pay is really set on how you are thinking. Rethink your thinking. Audio Production by Podsworth Media - https://podsworth.com

Let's bust some myths and let the record be set straight. The five myths we talk about in this episode are: 1. You borrow your money, 2. Premium is post-tax, 3. You collect the interest on loans, 4. You can use Universal Life products for IBC, and 5. You don't have to repay loans. Audio Production by Podsworth Media - https://podsworth.com

People often use incorrect terminology when they talk about their life insurance policies and IBC. So let's go over the real meaning of the terms: Pull money, Take money, Tax-Free, Tax-Free Retirement, and IBC policy. Audio Production by Podsworth Media - https://podsworth.com

It's hard to remember that our cash value is liquid and we get to use it. We have been programmed to think we will never see that money again. Remember, when you pay premium, a portion of that premium is available to you right away. You are not giving up access to every dollar you put in. Audio Production by Podsworth Media - https://podsworth.com

If you are questioning how you are going to pay for the new piece of equipment, more cattle, or even a life insurance premium, then build it into your accounting. Successful operations have the costs built in; they don't just hope and pray they will have enough. Many ask how they can get away from the bank. If you want to do that, then build your life insurance premium into your expenses. It's a cost of doing business. Audio Production by Podsworth Media - https://podsworth.com

The entire book is important; are you reading it all, or just one part of it? IBC is the first half, and life insurance is the second half, so be sure to read and re-read the entire book! Audio Production by Podsworth Media - https://podsworth.com

Where would you rather put your money? So many are not thinking correctly. Rethink your thinking! Audio Production by Podsworth Media - https://podsworth.com

After talking to over two thousand farmers over the years, I may know a thing or two, and I definitely have an opinion on a thing or two. Audio Production by Podsworth Media - https://podsworth.com

It is all simple when you quit making it so hard. Unfortunately, some people are stuck thinking small and have the mindset that everything is just too hard. Think bigger and ask for help solving the problems! Today I talk about fixing the mindset that is holding you back. Audio Production by Podsworth Media - https://podsworth.com

Our client-only Blacksheep Summit was last week, and we had a fantastic time. Let me tell you about it! Audio Production by Podsworth Media - https://podsworth.com

There's so much talk online about numbers and tactics, but the Infinite Banking Concept is first of all a thought process. So let's get back to basics: here are the 5 principles that IBC is built on. If you are new to the podcast, you're in for a treat! If you're a long-time listener, you need the refresher! Audio Production by Podsworth Media - https://podsworth.com

As I throw ideas out there for people, many come back with objections of why I am wrong. Let's challenge the thought process around this one; maybe I am wrong, or maybe we have a scarcity mindset instead. Audio Production by Podsworth Media - https://podsworth.com

Many farmers look at their tax returns for their yearly numbers. These are lies; you try so hard to avoid taxes that you are not looking at the real numbers of your operations! P&Ls will give you the numbers we both want. Audio Production by Podsworth Media - https://podsworth.com

My client Grant Jones joins me to discuss his shrimp farming operation, what all that entails, and how he has used IBC to finance it. Audio Production by Podsworth Media - https://podsworth.com

People love to blame banks for their financial difficulties, but are they really the ones who bear most of the blame? Audio Production by Podsworth Media - https://podsworth.com

What does it look like buying a tree farm, raising cattle, and adding a pumpkin patch? When do you quit your other jobs to focus? Such a great interview with Melanie and Cody Nelson of Iverson Tree Farm; don't miss it! Guests' website: iversontreefarm.com Guests' Facebook: facebook.com/iversonchristmastrees Audio Production by Podsworth Media - podsworth.com

Why are some IBC-users successful while others say IBC didn't work for them? Why are some business owners successful while the same type of business can be failing miserably for others? Human error. Audio Production by Podsworth Media - https://podsworth.com

Most people associate family money with bad emotions and greed, yet family money can surely get you to the next level. Audio Production by Podsworth Media - https://podsworth.com

Many feel like loans for things outside of farming are different than for farming, when in fact, they are the same. So I explain more in detail. Audio Production by Podsworth Media - https://podsworth.com

I am not an accountant, but it is that time of year for a friendly reminder of how taxes are tiered. This is a huge part of why you are not always saving as much as you think, and a lot of times, you're just redirecting your dollars from the IRS to the bank. Audio Production by Podsworth Media - https://podsworth.com

When taking a cash value policy loan from a whole life insurance policy, it works a bit differently than a bank. It's important to understand all the moving parts here so you can deduct the correct amount of interest on taxes if using that money for a business expense. It can be simple, amortized, and compounding; it just depends how you pay it back. Audio Production by Podsworth Media - https://podsworth.com

So many people put money into their 401K but don't know the rules. These are not officially hidden, but it seems as if employees don't know on purpose. Audio Production by Podsworth Media - https://podsworth.com

We talk about being the banker with Infinite Banking, but a lot of people do not understand what that means. There are three characters in play, and you want to be all three, not just the borrower. With that comes responsibility that will either make this work or kill it. You get to decide how good of a banker and bank owner you want to be. Audio Production by Podsworth Media - https://podsworth.com

It is so important for spouses to communicate well, especially on matters of finances. While it is ok for one spouse to take the lead on budgeting, bookkeeping, and/or financial planning, it is vital that both spouses have a working understanding of what is going on with their money. If you are going to become your own banker, your spouse needs to understand how this works and be on board. Audio Production by Podsworth Media - https://podsworth.com

There are many things we figure as a cost of doing business, but these four are missed nearly every time. Any and all of them can be a very costly mistake. Audio Production by Podsworth Media - https://podsworth.com

On this episode, I interviewed Rebecca Undem from Oakes, ND. We talk about how she is growing her small towns, helping others, her husband farming with her dad, and the challenges of it all. Rebecca is amazing, and you'll love this interview. Audio Production by Podsworth Media - https://podsworth.com

As I have predicted, there may be another farm crisis. Many think I am chicken little and have lost my mind, making blanket statements. Let's break down why I make those statements and put things into perspective. Audio Production by Podsworth Media - https://podsworth.com

This is a common question: How do I pay back a policy loan for something like a car that does not produce extra income to make the payment? There are a couple facets of this, so let's dive into changing some thoughts on how money flows. Audio Production by Podsworth Media - https://podsworth.com

Many people have "arrived" in their thinking and believe something to be true that is not because of misclassification. Don't be that person! Understand why you need to be educated and support your kids. Audio Production by Podsworth Media - https://podsworth.com

Many use these policies in their estate plans or as buy/sell or even key-man policies. The purpose of them is very misunderstood, and there are many better ways to do this without overpaying for life insurance. Audio Production by Podsworth Media - https://podsworth.com

Many people feel embarrassed when we meet that they have term life insurance. I do not hate term; it has it's use, just not for the long-term. Audio Production by Podsworth Media - https://podsworth.com

You have flexibility, but it should only be used when you NEED to, not all the time. Paying premium makes you money. Audio Production by Podsworth Media - https://podsworth.com

We need to do a better job of asking questions, and those who do not ask and think they know are scary. Not everyone understands ag but is ok with taking money from a policy sale. That is not helping this industry. Audio Production by Podsworth Media - https://podsworth.com

3 things I do not buy into 100% are gold/silver, cryptocurrencies, and velocity banking. Are they useful? Perhaps... yet I don't understand a lot of the hype or why these are the end-all, be-all for some folks. Audio Production by Podsworth Media - https://podsworth.com

Keep in mind, if you are looking for advice from others, your approach will determine your success. Audio Production by Podsworth Media - https://podsworth.com

Farmers and ranchers are so independent that they think it can only be done alone. But what if we did it together? Buy some land together, and create a partnership. You can go further together than you can alone. Audio Production by Podsworth Media - https://podsworth.com

Who is right in this fight? Who is the door mat, and how long do we sit around waiting? Audio Production by Podsworth Media - https://podsworth.com

When I visit with people, I tend to throw around lots of ideas to make more money, so I decided to share a few of the hot ones with you. Audio Production by Podsworth Media - https://podsworth.com

You don't get to count your debt as paid-off if you come into money. Be honest and keep paying yourself; those are the basics of the Infinite Banking Concept. Audio Production by Podsworth Media - https://podsworth.com