Shyft-Capital: Wealth Education, Investing, and Protection for Families, Businesses, and Non-Profits

Shyft-Capital: Wealth Education, Investing, and Protection for Families, Businesses, and Non-Profits

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00:01
all right so tonight we're going to cover something that your financial advisor might not have told you have you ever wondered where all the wealthy people put their money have you ever wondered why wealthy people remain wealthy have you ever thought to yourself man i've been doing everything that my financial advisor has told me to do yet i seem to get further and further away from financial security well tonight we are going to answer all of those questions and at the same time provide a possible solution one that could change you and your family's destiny today yes
00:31
today all right so let's actually get to the webinar portion of the webinar and we're going to be talking about shift capital where you go to shift your economy but before we get into the topic at hand a lot of people like to know who they're talking with so this next slide it's it's my least favorite but i understand that a lot of people love to know who they're interacting with so a little bit about me my name is josh tully as i've mentioned i am a top 100 business trainer top 25
01:10
business advisor three-time number one best-selling author i'm a nationally syndicated talk show host the chairman of 12 companies of engelpreneur by far my best-selling book out of the the number of books that i've written and i've been on other shows as well doing over 100 different appearances on television and radio everything from fox business to crtv the blaze day star al jazeera yes that al jazeera turkish television you
01:42
name it i've been around for a long time and i say that not to kind of brag but just to kind of draw a comparison between a lot of what we see in the internet delivered content these days where you have these what i call insta experts who've never really done anything other than become a coach or something weird and that's simply not the case here i've been in business like i said for 25 years have owned a number of companies currently on 12 of them
02:12
everything from clinics to jewelry stores to beverage companies you name it we've been in it and we've been doing it for a long long time so i say that again not to brag just to establish some some credibility in the topic that we're talking about tonight i've been doing this for a long time and what we're going to be talking about is something that in my 25 years of being in business i've never seen anything that holds a candle to the financial power of what we're going to be addressing so
02:44
then what about shift capital well shift capital really offers three types of services either through shift capital directly or our sister companies we focus on wealth education wealth creation and wealth protection we view this this whole financial arena as something that needs to be holistic and complete you know a lot of companies focus maybe on one of these but that's really like sitting on a one-legged stool it's just
03:14
it's not going to work by focusing on all three it gives a way stronger sense of stability and financial security now we're gonna focus on one of these today and that's wealth protection even though the other two are great we'll offer webinars on those as well but the topic right now is wealth protection now why wealth protection well shift wealth protection was really born out of a need we had been placing our clients financial trust and capital for a long
03:45
time for 20 plus years and we were noticing a scary trend the options that are typically presented are not really decent or even smart options now we're going to be talking about a lot of things in this webinar and none of these are necessarily indictments so to speak of different options or tools or services but just a an honest real look at what we have found through our real life experiences of doing this
04:16
for what seems like a long time now man time flies one of the first things we're going to be addressing is banks now we're not opposed to banks we have bank accounts in multiple banks actually there's nothing wrong with banks but when it comes to financial security and where to put the important money we just didn't feel confident placing the important money in banks long term and there's a number of reasons first who owns your money now as odd as this might sound when you deposit money in a bank you no
04:47
longer own it you become what's called a creditor to the bank i remember i was given this presentation in front of a few hundred people and there was a gentleman from chase bank there and i had him stand up and i said now i'm going to say something and you tell me if it's true or not when people put their money in the bank they no longer own that money and he said that is absolutely true i know it's just something that we're not taught you become what's called a creditor to the bank now for me personally that seems like a pretty
05:18
risky sort of situation i like stability i like safety i like knowns i don't like surprises and if i had the option of owning my money or giving up ownership to somebody else for them to put in their bank it's an obvious choice for me fractionary lending now this is a topic that justifiably and admittedly is a little a bit of a hot button issue the idea behind fractionary lending is a bank gets money on deposit they lend it out multiple times the
05:49
amount of deposit so for example if you put in a hundred dollars into the bank they're not going to lend out just a hundred because of banking relationships through the federal reserve they actually get to lend out and issue more loans than money on deposit that gets problematic quickly it isn't covered by the fdic now this again is one of those well wait a second josh it says right in the window there's a little sticker deposits up to 250 000 are covered by the fdic well there's a pbs uh report
06:22
it's a great actually they did a great job on it i think it was the pbs program front line that pointed out that the fdic has about 50 billion dollars in coverage they can leverage up to about another 500 billion if need be and that's relatively new based on the crisis that i'm about to tell you and what's that crisis well the fdic only has 50 billion dollars on any given day in those fdic insured accounts there is three trillion dollars
06:53
so they don't even have a fraction of what they would need to really cover this now this was true in a pre-covered world of course but now in this post covered world it's becoming even more and more relevant why well because here in st louis when covet hit the fdic and the the and the federal reserve were running ads on television urging people asking people please don't take your money out of the bank why because if it crashes they do not have the money to cover it and like i said before i don't hate banks but i've asked every one of our
07:24
bank managers and the four i think we have four different uh companies that we bank with all four companies have admitted and said yeah we are fully aware that the fdic does not in fact have the money they need to cover and then of course the big bank bailouts irritate the bajibes out of me i'm kind of a study of a study of economic history and we saw big bank bailouts in the great depression and where the banks were given money to artificially prop up the stock market it didn't work and
07:54
it ended up crashing even larger than some experts believe it would have if we didn't do the big bank bailout and then of course in 2008 we we were all alive for that and we saw the bailout go to the banks the idea was we bail out the banks now that's kind of ironic since these are supposed to be the people who have all the money right we bailed out the banks and the banks were supposed to then lend out that money to us to cover loans to cover mortgages to cover life it didn't happen instead what we saw happen was the big banks kept all that money gave
08:26
themselves record bonuses and the excuse was well if a financial crisis ever happens again in the future we're going to need to have the liquid to cover huh fast forward to 2020 so not that far in the future fast forward 2020 and what happened another crisis did the banks have that capital and were they ready to cover no of course not nope we learned it in kovid that it took about four and a half minutes for us to realize uh this isn't going to work so the government once again bailed out
08:57
the banks that didn't work because why well they weren't passing the money along to us so the united states government had to go directly to the u.s citizens and issue that money i don't know about you but me personally i'm a little sick and tired of having to bail out these banks especially if these are supposed to be the people that i trust with the ownership of my money and then of course what you can buy now we'll get into that in a second but obviously we knew at that point that this wasn't a good place to keep our important money this is the general terms and conditions
09:30
see i'm a really big fan of you don't have to take my word for it prove it well here's proof this is from a bank i'm not going to tell you which one but if you count the x's i'm pretty sure you could make an educated guess but this is true with your bank too this is kind of a standard terms and conditions and this is uh when you open an account this is typically displayed to you in digital format on a little tablet and instead of reading it most of us myself included just hit next next next next next next next
10:00
and then sign well we decided to print it out and this is what it says it says that you the client agree that we the bank have the rights under this agreement that they the bank are entitled to all rights and protections of this agreement not you not both of you even just the bank they we the bank can amend this agreement it gets worse you the customer cannot transfer or assign rights or obligations now here's where it gets nuts payments
10:34
they reserve the right to decline payments whether that's your debit card your credit card your checkbook or a cash withdrawal from the bank itself on anything that re that relates to any of these now i know that you might say well josh they might have put this in the contract but they don't actually use this this section uh first to me that's 100 irrelevant the fact that they own the money they have the right to amend the agreement
11:04
and they get to say what i get to spend the money on no thank you but let's just kind of take a look at some of these prescription drugs and devices prescription which means legal prescription drugs that your doctor wants you to have if the bank doesn't think you should have it then they can deny that credit card or debit card swipe or that check not kidding and if you don't think that's possible one word for you hydroxychloroquine they also reserve the right for goods
11:35
and services that might include images or language that are bigoted hateful racially offensive vulgar obscene and decent or discourteous i think we all could agree that none of us want to be bigoted hateful racially offensive vulgar obscene and decent or discourteous but who gets to decide what is discourteous a jury of our peers a judge the city code no none of these things the bank because we just gave them the right to two pages ago they get to decide what is discourteous
12:07
and based on their definition they can decline your debit card now in 2020 what could discourteous be not holding the door open for somebody when they enter the bank or let's be honest it's 20 20. discourteous could be holding the door open for somebody when they come into the bank so we just knew at that point too ah this is like red flag number seven goods or services that advertise sell to or solicit others for some reason multi-level marketing
12:37
programs they got picked on a little bit too but this too donations or payments to any unauthorized charity or non-profit organization that they might agree might not agree with now you might say well again josh this is in the contract but they don't actually exercise their rights first again 100 irrelevant does not matter to me if we're going to be a good steward with our capital does giving all these rights and permissions over to some other entity and giving up control sound like a good steward
13:07
yeah i didn't think so either but look it's actually happening this came out i think the week before the 2020 election now please keep in mind i don't care who you voted for i don't care if you're a democrat republican or you didn't vote at all this should scare you a florida conservative fire brand laura loomer tells why she was banned from twitter paypal and uber and had her bank account frozen for anti-muslim hate speech now i am not a supporter of anti-muslim hate speech
13:39
not at all but that's not really the point is it who got to decide if her speech was anti-muslim a jury no a judge the police not at all the bank completely open to their interpretation huh i don't care if you are a hillary clinton joe biden loving democrat that's fine that's good good for you this should scare you and she's not the
14:11
only one i know other people who host talk shows like myself who have been denied access to their funds at the bank or their payment processor just because the bank or the payment processor didn't agree with what they posted on facebook and if you don't think that this can happen for goodness sakes remember the athlete he was a race car driver who got uh fired not because of something he said but because something his dad said in 1977
14:41
or 78 not kidding so in this crazy world we realized really quickly oh man i don't know let's protect as much money as we can from this sort of shenanigans that leads us to the stock market again i'm not going to tell you that the stock market is terrible not at all i'm in the stock market i play the stock market i have stuck in a a lot of things and i hope i hope key there i hope i hope that it continues to grow and
15:13
i can cash out and yeah yeah yay but there's some realities to this too when it comes to protecting capital and that's what we're talking about we're not talking about where to put money to become rich we're not talking about where to put money in order to gain an awesome rate of return we're talking about protection of the money so when it comes to the stock market there are some things that we really didn't like compound interest for example there's this idea
15:43
that wall street based products are giving you compounded interest they're not they're not i know your financial advisor probably told you about the rule of 72 and albert einstein said there's nothing more powerful than the rule of 72. he's right einstein did say that and einstein is probably right but but that rule of 72 based on compound interest is not what you see in most wall street based products why because if they actually paid you
16:15
compound interest they would go to prison let's say for example i buy a stock market based product i don't care if it's an etf a mutual fund it doesn't matter raw stock if i buy a stock for a hundred dollars and it goes up to 150 in value is that compound interest nope not at all not even close interest only has two definitions either increased ownership
16:46
or cash paid on a financial vehicle so when a stock goes up in value to 150 did my one share become two shares no did that 50 extra dollars of value get paid to me as a 50 payment no not at all so by neither definition is this compounded interest now to add insult to injury when i make my next purchase or contribution to my retirement plan do i get to buy in again at 100 no
17:18
i have to buy in at what 150 or worse yet even higher thus negating the gain and i'm using air quotes the gain that i thought that i made you're not compounding you just have a a an item that is hopefully going up in value and then you continue to buy more at that increased value well what about dividends dividends are paid out and i can reinvest that sure absolutely rock on yep cool but the value of the stock affects the dividends
17:50
first please understand that most of the largest companies in the stock market and if you're listening to this at somewhere in the year 2020 up to 2022 most of the companies that are really keeping the stock market up are companies that do not produce dividends not kidding i remember as late as december of 2020 it's six companies six companies that were keeping the stock market afloat if you will the whole oh well the dow reached 29 000
18:22
yep six companies that were doing it quick little side note isn't it interesting there's 400 companies listed on the new york stock exchange and they can swap out the companies that they want to put in the dow yeah it's crazy crazy that'd be like playing poker with somebody who's keeping four extra decks of cards under the table and they get to switch out whatever cards they want to make their hand look good but that's a whole other topic when we look at the value of the stocks it's really fascinating to see how how overvalued
18:53
the stocks are even according to their book value and i know this might get a little bit you know heady or or geeky in terms of economic talk but just just think of this in a real simple scenario i've been buying selling flipping building growing and advising companies now for 25 years when i buy a company i look at the company's earnings and there's way way too many ways in my opinion on how to base that but you can look at sde you can look at net you can look at ebitda you can look at gross whatever you pick some sort of
19:24
economic earning indicator and then you multiply that by 3 5 7 10 15 even some cases 20 and that number tells you in real cash not an increased value of the company but in real cash how long it's going to take to earn back the purchase price of that company well when we look at dividends and real value book value as opposed to stock market value of these companies what do we find we find massive companies whether it's amazon or tesla
19:54
that pay out zero dividends zero nothing nada and i get it they're reinvesting those dividends to the growth of the company great hallelujah yes that's why i'm in the stock market i'm not saying don't do it i'm just saying let's understand it so when we make decisions on how to invest we're not making that same decision when it comes to how to protect so when you look at amazon they pay out a 0.0 dividend so what am i hoping
20:26
i'm hoping the value of amazon stock continues to go up and then i sell it to somebody else interesting side note jeff bezos has publicly said three times that amazon is going to go bankrupt for some reason investors aren't paying attention but that's a whole other story but in terms of actual time it takes me to earn back my stock purchase in terms of dividend earnings it would take infinity years infinity now even with dividend producing stock which is great yes yes yes even with dividend producing
20:58
stock like jb hunt a trucking company you buy a share of that for say 98 they pay a 96 cent dividend so it's going to take me a hundred years to earn back that money now i can use that 96 cents to go towards the purchase of 1 100th of a new share and hopefully that compounds and that's great and wonderful again i'm doing it but please understand that the rule of 72 doesn't really apply in this case because even that is a slow growth position and that doesn't account for
21:29
increased taxes increase property taxes and taxes outside outside of just income it doesn't account for inflation so just be aware of what's really going on then you have fees yes fees on a typical mutual fund you have approximately 12 to 14 different fees and i think it's sad when people say well i have a brokerage account online that charges zero transaction fees and they say that as if somehow they're not getting charge fees no they're not charging you a transaction fee it's kind of like when
22:00
you buy a car and they give you dealer price but they're not giving you wholesale price wholesale dealer price incentivized wholesale dealer price they can show you whatever number they want the reality is that they're making a profit you know it i know it but in some sort of strange universe we live in we seem to forget the fact that that's what wall street's doing to us too as a matter of fact wall street the broker always wins really and more so the house always wins you know i'm not telling you to gamble
22:31
but if you go into a casino it's really interesting all the games except for one are slanted so the house wins craps roulette slots blackjack what have you it's slanted in favor of the house that's true for all games except one there's one game where the house wins every single hand and that game is poker the reason why the casino wins every hand of poker because they don't have their own money at stake they don't
23:02
if you go into a casino and watch a poker game and what you're going to see is the dealer the dealer will deal everybody will auntie and auntie put their money in the pot first the dealer will then take his or her hand reach out grab a portion of that pot and put it in a locked box next to their seat that's the house's cut the house doesn't care who wins the house can't lose money it doesn't matter who wins or who loses the house makes a cut well wall street and i'm using that broadly whether it's new york stock exchange nasdaq the nikai whatever
23:34
they are for-profit generating machines and oddly enough it means they actually make more money in a crisis than they do in good times why because in a crisis people sell sell sell sell sell sell sell so there you go now jack bogle and vanguard this quick little story you can look it up for yourself there's an interview that tony robbins the motivational speaker did with jack bogle jack or john whichever name he goes by at the moment he actually recently passed away but he
24:05
managed vanguard vanguard is the largest mutual fund company in the world they managed trillions of dollars in assets he would spend more by lunch on monday than the entire net worth of jeff bezos absolutely amazing but he said in an interview once uh tony robbins and i'm kind of paraphrasing but he said jack let me get this straight what you're telling me is wall street's really a racket it's a bet yes and it's a bet where basically you the money managers
24:36
come to me and say hey give me your money i'm gonna go bet it and if i win you get some of it and if i lose you still pay me and jack said uh yeah who would do that jack yep yep exactly and then of course march 7th we've seen what happens march 7th 2020 we've seen what happens when there's too much of a crisis they just close the casino down and then we get to this average rate of return at the 15 to 30 year returns if you have been told if you've been
25:07
told well just put your money in the market and let it ride for 15 to 30 years and that's how you really make money in the market uh no not really not statistically anyway as a matter of fact this actually let's let's cover this first let's cover this first we'll get to this average rate of return in a second but let's cover this first back to the interest portion this is the actual definition of interest interest in finance and economics is the payment from a borrower or deposit-taking financial institution
25:37
to the lender or depositor of an amount of above repayment of the principal sum at a particular rate it is a distinct it is distinct from a fee in which the borrower borrower may pay the lender it is also distinct from a dividend what does this mean in reality well it means that compounding interest isn't really happening in wall street by their own definitions compounding interest is the interest on a loan or deposit calculated based on both the initial
26:09
principle and the accumulated interest from previous periods huh wait a second well neither one of those things happen when you invest in a market-based product exactly so you don't have to take my word for it that wall street isn't paying you compounded interest it's actually illegal if they did but let's get back to this average rate of return this is why you never want to listen to averages the word average is really where people pull off money magic let's say you buy something
26:39
for a hundred dollars a stock you like or a mutual fund it goes up 50 woo hoo happy days it's now valued at 150 then the market goes down forty percent it's now valued at ninety dollars but you know what's nuts i can tell you you made a ten percent average yield even though you have ten dollars less money now what's really crazy is you spread this over 15 to 30 years and it gets super ugly it gets super ugly
27:10
which is part of the reason why so many millions of americans have failed for this just crazy idea of buy term and invest the difference sort of scenario when it comes to how to become a wealthy individual i want to talk about real examples here we go here's jim jim's portfolio he starts it he starts with drawing right at 66 he's going to retire he starts with 500 000 he takes out an inflation adjusted withdrawal rate of
27:41
2.5 percent we are using the actual s p index fund numbers from 20 to or from 2000 to 2015. the 15-year period gave an annual average rate of return of 3.77 well josh that guy on the radio told me he's getting 12. yeah if you go to that guy's own website see the little citation marker next to that claim and click it he actually tells you uh no i don't there's a huge difference between the actual rate of return and the average rate of return
28:11
anyway but this is the actual number from 2000 2015 he's taken his withdrawals and at the end at 81 years old he has 344 290 dollars well done well done yay but you don't know when the negatives are going to happen and you don't know when if that's going to be at the beginning middle or during your retirement age so let's take the exact same scenario and put it on jane jane has the same half million dollars
28:42
same inflation adjusted withdrawal rate same s p index numbers same rate of return the only difference is timing timing jane decided to retire at a different time get invested at a different time so what happens at the age of 81 jane has 74 300 and she has to go be a greeter at walmart even though she saved up and did what she was supposed to do and rule of 72 and we're getting a great seven percent return and whatever
29:13
got her to half a million dollars when she got to 66. oops didn't work why because it's not protected for goodness sakes this market is so volatile that there is a ticker on the bottom of the new screen telling you by the second what's going on does that does that scream safety to you yeah i mean either as a matter of fact wealthy people do not put their money in the stock market
29:43
nope see we've been told that they do we've been told well wealthy people that's where they put their money and and that's where i put my money no if you have a million dollars or more the reality is that less than five percent is typically kept in the stock market how much of your retirement is based in the stock market yeah exactly so just to kind of recap before we get into a third option what happens when bob here puts a hundred dollars in the bank the bank lends it out and even though
30:15
they lent it out what does bob's balance say a hundred dollars this is a really important concept to understand otherwise what i'm about to say is gonna sound totally out of left field and you're gonna go what if bob puts a hundred dollars in the bank that bank lends it out to sally to buy a bicycle his balance still says a hundred dollars so we started asking ourselves when we were looking for a place to put our money that was safe and secure while we look for other places to invest it
30:46
where does the bank put their money then and you know oddly enough it's not the bank i know you would think it would be it's crazy where do wall street people put their money wall street right no not at all i have a video that i share in our live classes of warren buffett saying that this diversification in wall street is for idiots and he only owns one stock a what yep if you have a million dollars or more most people with a million dollars more outside the value of their primary residence do not
31:16
keep their money in the stock market the stock market has become the number one way to extract wealth from the middle class it is absolutely appalling in some cases now if you're going to play it that's a completely different scenario play but realize that it is exactly what it is it's a bet so we started looking at where do these entities put their money they put it with insurance companies now please understand when i say insurance companies i am not talking about what most people would see in the world
31:47
the retail sort of insurance the state farms the allstates the american families the progressives there's nothing wrong with those companies nothing please please please let me make that point clear nothing wrong with those companies but that just represents a tiny fraction of the insurance industry and if you're if you're an entrepreneur you know that you know that you have slip and fall insurance you have eno insurance uh a great example that most people could understand the mona lisa in paris it's insured
32:20
obviously but i can promise you that it's not insured by 1-800 general now right beyonce's voice it's insured but i guarantee you it's not insured by flow from progressive there's nothing wrong with retail insurance but take what you know about retail insurance and just set it aside for a second because that's not what we're talking about now why do wealthy individuals wealthy non-profits wealthy companies and banks and stock brokers why do they put their money with insurance companies because it lets you do something that is
32:51
absolutely insane it lets you borrow out yep so let's say bob here puts a hundred dollars with the insurance company he then borrows out a hundred dollars what does bob's balance say a hundred dollars oh no josh that's too good to be true was it too good to be true there no no put your hundred dollars in the bank they lend it out to somebody your balance still says 100 same is true here as a matter of fact this is a very
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popular way and it has been for over 100 years as to how wealthy people remain wealthy this is from berkshire hathaway's own website you can go on their website it's called the investor playbook quote besides berkshire has access to two low-cost non-perilous sources of leverage that allow us to safely own far more assets than our equity capital alone would permit deferred taxes and a float the funds of others that our insurance business holds because it receives premiums
33:53
before needing to pay out losses both of these funding sources have grown rapidly now totaling about 170 billion dollars better yet this funding to date has often been cost free deferred tax liabilities bear no interest and as long as we can break even on our insurance underwriting the cost of the float developed from that operation is zero even the motley fool ran an article warren buffett in the insurance business a 52-year love story i find it so funny when people think
34:23
well he's the oracle of omaha he makes money on wall street nope he makes money by putting your money in wall street and his money is in insurance companies not kidding as a matter of fact the banks are the same way there's about 5 400 banks in the in the united states and as of third quarter of 2019 this is you can go look at fdic.gov you don't even have to believe me it's right on the government website for goodness sakes you just weren't taught about it almost
34:55
3 800 banks own 190 billion dollars in insurance every national and every regional bank has their money in insurance companies absolutely crazy why why because insurance offers you real compounding interest yes when when an insurance company pays you a dividend they pay it to you in cash remember interest had
35:25
two definitions either cash paid on a financial tool or device or increased ownership of something well when an insurance company pays you a dividend they pay it to you in cash or you have the ability to say i don't want the cash give me more ownership so by both definitions it's hitting interest the insurance we're talking about can't lose value it doesn't go backwards huh that's why it's safe enough for wall street and the banks to put their money there
35:56
it offers tax-free growth now i get it somebody listening to this is probably going to say something silly like oh there's nothing that's tax-free that's too good to be true that's one of those things nope nope not at all as a matter of fact every single person watching this webinar knows for a fact that interest is taxed or that insurance is a tax-free entity you know it it's not too good to be true you just weren't taught about it how do we know that well i'm hoping that your car is insured
36:28
and if you crash your car into a mailbox and the insurance company sends you a four thousand dollar check to fix it do they tax that nope if your house burns down and they send you a two hundred thousand dollar check to fix it do they tax that nope when grandma dies and leaves the kiddos ten thousand dollars in a life insurance policy do they tax that nope see every single one of you knows that insurance is tax-free you just weren't taught to use it as a
36:59
tool it protects you from creditors let's say you have a hundred thousand dollars with an insurance company and there is this oh i don't know pandemic and all of a sudden all of a sudden your business is going out of business you lost your job they're repowing the car guess what they can't touch the money you put with the insurance company it's also safe from bankruptcies in most u.s states i think it's 48 out of 50 or
37:33
47 out of 50. it's even safe from bankruptcy it gives you two assets in one we'll talk about that in a second insurance doesn't crash insurance doesn't crash now have insurance companies gone out of business sure that that happens no matter what i mean people sell people close but you've heard of 47 stock market crashes you've heard of 41 bank savings and loan and credit union crashes you've never heard of the great
38:04
insurance crash of nineteen never why because insurance isn't based on markets as much as it's based on math i get asked a lot how do insurance companies make money it's really simple if a hundred thousand people own homes in your city they all have homeowners insurance how many of those houses get burned down or get destroyed by a tornado every year five maybe ten maybe that means ninety nine thousand nine hundred and ninety of those are profit yep
38:36
insurance companies sure they invest in stuff like real estate and bonds and treasury bills and all that but they also make money based on math not market it protects your other investments so real estate investments 401k contributions um gold bitcoin ranch land what have you it can help protect those other investments and it also gives you quick access to cash so here's the difference again there's nothing wrong with retail insurance
39:16
nothing at all my harley's insured by state farm and my business is insured um for loss from i think um mutual of omaha i think or something yay yay nothing wrong with that at all and they sell insurance that's great what are we talking about well we're talking about yes insurance but also the security the tax free growth the liquidity the protection the legacy and of course the strategy that comes along with it when people say well what is this what are you even
39:47
talking about we're talking about a specially designed non-direct mutual participating permanent strategic whole life form of insurance this is not something your normal whole life insurance provider can provide so let's take a look at what this looks like in a in a real life example okay let's say this is sally sally's 34 years old and you're going to notice some things first all these letters up on top here if you can see my cursor
40:20
we'll explain those in a little bit but then you're going to notice two other things guaranteed and non-guaranteed now i've been around for a while as evidenced by the gray in my beard and the fact that i've been an entrepreneur for 25 years and i can tell you that hardly anything has this word in it in black and white now this isn't our guarantee this is the guarantee right from the underwriting companies the carriers now this this to me really makes this a game changer if you invest
40:52
in the stock market mutual fund 401k whatever you're gonna sign a multi-page document telling you how it's not guaranteed actually telling you you know this isn't guaranteed right it's it's crazy how people are like well that's a safe place to put my money no you just had to sign something that told you it wasn't guaranteed the same thing is true even with a mortgage you're gonna sign how well this isn't really guaranteed we can call this due at any time you know it's just nuts but in my 25 years of being
41:23
in the financial industry do you know how rare this guaranteed word is so that's there then there's this other column non-guaranteed assumption 100 of current dividend scale what does that mean well this particular company has been around for about 115 years yes insurance is really that old and really that stable as a matter of fact insurance goes back 6 000 years the ancient chinese the ancient greeks
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all implemented insurance it's it's amazing it's even referenced in some of the babylonian texts it's phenomenal really so this company's been around for about 115 years this is what they actually have been paying this is what they actually do that's how transparent and solid insurances they have a guaranteed column and this is what we actually have done so let's take a look at this you'll notice a few things first
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this isn't an increasing premium sort of product so this isn't an iul that's not a vul it's not a term it's not a traditional whole life no this doesn't go up in addition you don't pay for this for forever oh my gosh how crazy would that be in sally's example here she places a hundred thousand dollars with the insurance company wait a second josh you're telling me this is costing her a hundred grand
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no no when you deposit your paycheck in the bank and let's say you deposit a thousand dollars do you leave the bank on man it cost me a thousand dollars no you're thinking about regular retail insurance like by term or something that's not what we're talking about let's follow this column over here at the at the first year she has access to 80 of this now this varies i've seen this as high as 87 but it's all based on situation and health condition and all that but anyway
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this is cash this is liquid money when people say well what's the catch what's the hook what's what's the part you're not telling us that's it she places a hundred thousand she has access to 80. that's the hook now why well because they're they're leveraging risk here because what she really bought was 4 million bucks that's what she actually bought so let's just paint a scenario let's say you're walking into walmart
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and there was a bag of money and it said for sale four million dollars and it was real price tag nineteen thousand six hundred bucks how many of you would go find nineteen thousand six hundred bucks in order to buy four million dollars all of us you'd be flipping over couch cushions trying to find pennies to put together to buy the bag of money that's what she bought not kind of not maybe not only if it works nope see right here
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guaranteed she bought it baby so to leverage that risk this is so permanent that let's say she does this four seconds after she signs the paperwork she gets hit by a bus her husband and heirs get paid four million dollars that's the catch that's the risk now as you'll see she makes it all back anyway she makes it all back anyway in her case by year six she's getting more credit than what she's putting in to begin with so it all comes back but
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when people like well there's got to be some catch there it is leveraging the the idea that you're not going to die that first year now you'll notice some other things uh the first one being like i said she doesn't put in any premium payments after year eight can she she can if she wants this is her strategy because this becomes just a a revenue producing machine because look at this no more contributions oh wait a second increased cash value
45:39
she made 28 993 now this isn't a running total this is yearly she made twenty eight thousand nine hundred ninety three dollars tax free because she's keeping it in the insurance company now what does that mean how does that work check this out this will blow your mind when i first learned about this i didn't sleep for two days not kidding you can ask my wife i didn't sleep for two stinking days let's say we're in year three and
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she has 000 in accessible cash she can either withdraw some of this totally legit she can withdraw some the only thing that will happen is this death benefit will go down proportionately that's fine but but she can also borrow against it loan it out so just like the bank if you have a hundred dollars in and they loan it out your balance is what 100 same thing is true here let's say she
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finds a nice multi-family dwelling she wants to invest in she borrows out a hundred thousand dollars her balance says 260 thousand dollars still yes really she buys the multi-family dwelling and she has 260 000 sitting in here chunking up real real compounding yeah that's a game changer if you are a family if you are a business if you are a non-profit
47:14
your financial situation just changed now here's what's even better if she went to the bank and borrowed out a hundred thousand dollars they are going to ask her well proof of income proof of job proof of credit score how are you going to pay it back right bob hope has this wonderful quote that said banks will gladly lend you money as soon as you can prove to them you don't need it it's absolutely true which is why fifty percent of loan requests are denied
47:45
this is the complete opposite who does she ask herself it's writing the contract the insurance company can't deny it she looks in the mirror and says hey sally can i borrow 100 grand why yes sally you can now again doesn't matter if she has a 320 credit score and hasn't worked in seven months doesn't matter at the beginning of covid i got this terrible phone call from a man just crying on the phone and he had four hundred thousand dollars of paid up equity in his house he got furloughed from his job he went to the bank to try to borrow out 20
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grand against his house because he needed the money to keep them afloat do you know what the bank said nope why because he doesn't have a job he has no way to pay it back and he's crying he goes man my parents told me buy a house because there's nothing smarter than building up equity in your home it's like putting money in the vault nope the bank will lend you money as soon as you can prove to them you don't need it this is the exact opposite in addition if she did borrow money from the bank when does that first payment start
48:48
the very next month in this situation it is up to her she can look in the mirror and say you know what i don't want to pay next month okay well i don't want to make my first payment in a year okay well i want to make my first payment in 10 years all right well i don't want to make a payment okay ever okay why is that possible because she bought four million dollars that's what she actually bought so worst case scenario
49:20
let's say she borrows out a hundred thousand dollars she buys the multi-family dwelling she gets hit by lightning and dies she never paid the hundred thousand dollars back what did they do they take the 4.7 million that they owe her husband they deduct the hundred thousand dollars that they borrowed against her leverage here and they pay him 4.6 million dollars tax free yay if you grasp what i just told you your world just changed
49:51
not maybe not kind of it just changed now how can you use this in as many ways as you can possibly think of it is crazy how powerful this is let me give you a couple examples we're working with churches and non-profits and in synagogues and temples because here they get donations right the donations come in they take those donations run it through a policy borrow the money right back out to pay staff and rent and lights and heat
50:24
but you keep the entire amount snowballing then it just keeps growing and you paid your bills now in addition to that when the pastor dies or the board member dies or the deacon dies you now get this massive injection of capital so now it doesn't matter if your nonprofit or your church never gets another donation ever it's going to get wealthier and wealthier with every subsequent generation another example we have an employee here or we had
50:56
and that's key to the story we had an employee here who worked here for about six months my employment contract says if you work here i get to have a policy on you not unusual actually it's it's if you've ever owned a large business it's actually in many cases required but anyway she worked here for six months i would take her paycheck put it through a policy on her first borrow it out and then pay her and because she worked here for six
51:27
months at some point in the future and i hope it's a long time but at some point in the future my company or my heirs are going to get a half million dollars tax-free because she worked here once for six months yup now i had two options either a i take the money and pay her and then i'm out all the money or i take the money put it in a policy make a compounding rate of return borrow against it still pay her still keep the compounding rate of return
51:58
and get the death benefit when she does pass away it's kind of a no-brainer so that's what we're talking about with shift wealth protection well josh does it work for people who don't have a hundred grand sure yes yes yes let's take the same sally sundress let's say she's a a manager at a chick-fil-a and a single mom for two right she places twenty four thousand dollars with the insurance company she has access to twenty thousand dollars of it her rent is fifteen thousand dollars she
52:28
borrows out fifteen thousand dollars to pay this year's rent now she keeps the entire 20 making a compounding rate of return and she pays rent and she's leaving a million dollars to the kids with the same money we can do a stretch ira where if you have an ira with no more contribution than what you're already doing to your ira we can stretch that puppy and get up to a 40 increase long term cash result without changing
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any sort of additional money contribution we're not talking about extra money or finding extra money or this is the investment no we're talking about the money you have let's protect it and strategically use it to the benefit of your real goal and by now if you're grasping this you understand how this literally not kind of not maybe how this literally changed your financial trajectory i don't care if you're a single mom managing a chick-fil-a
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i don't care if you have 500 million dollars in the bank and you're the ceo of forbes or a fortune 500 company doesn't matter we just changed your destiny so that's it really that's it at this point typically i take uh questions and answers if we're doing this live the benefit is if you're watching this in the webinar version we have recorded a number of our most common frequently asked questions so feel free to answer that if you're watching this and an agent
54:01
referred you get back with the agent that referred you and they can answer all these questions for you they can even run one of those illustrations for you without any commitment and they can just run one to show you what your specific financial scenario would look like and they can help you with creating those those legacy sort of financial plans the the stretch iras and stuff like that if somehow you got this webinar some other method well first we're glad
54:33
you're here welcome you can contact us also at info at shift dash capital dot com shift being spelled like it is spelled on the bottom right of your screen so shyft capital dot com info at shift dash capital dot com thank you so much for uh spending some time with us during this webinar i know it was kind of lengthy but i also know the power that it has we have saved our families and our clients and our businesses that are working with us well over 30 million dollars in
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long-term capital and our clients during covid have not lost a single dime so while this might have been a long webinar you and i both know that it just changed everything and it was well worth it thank you for the time hey thank you so much for watching and look i know there are a lot of things out there everybody has something that sounds cool i get it i know it i've been doing this for 25 years look if this works for you great if it doesn't great we do a lot of other stuff
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so i know we have something for you but i do want to make sure that you have all your questions answered if an agent sent this to you make sure you get in touch with them and if an agent hasn't sent this to you then feel free to contact us at the information provided either way again i thank you for the time and i'll see you next time you

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