Jason and Kyle are back in the Becoming Your Own Banker book review this week. They cover the often misunderstood and number heavy Equipment Financing section. This podcast is meant to clear up confusion that commonly arises. They walk through the first two illustrations in the section, tell you how they are funded, and what Nelson was trying to accomplish with the examples.
Jason and Kyle focus on the topic of overpaying on debt. Top four things you will learn: 1. How it’s possible to overpay on debt. 2. Who is actually winning when you pay more than the required amount? 3. When should you pay off debt as soon as possible? 4. Cashflow consequences of overpaying on debt.
Kyle and Jason talk about why it is important to be honest in your business as well as be an honest banker. You should pay market price for products or services that you personally sell (don’t steal the peas!). Using your own money isn’t free. Pay yourself back at least at the market interest rate. If the policy outperforms the investment you are financing, look at terminating that investment. Having financial certainty is POWERFUL!
Jason and Kyle cover a Ranch Management Consultants blog they recently read that talks about putting profits from your business into other assets. They discuss where placing profits and building equity makes the most sense. Link to our blog "Average and Actual Returns. What's the Difference?" Link to RMC blog “Going Long”: https://ranchmanagement.com/going-long/
Jason and Kyle are back in the book review this week. They cover the highly debated “Expanding the System to Accommodate All Income” section in Becoming Your Own Banker. Your first goal when starting IBC should not be to get all of your income in a policy as fast as possible. They explain why long term thinking and planning will be more beneficial to your system.
Does it make sense to buy equipment that you do not need to avoid paying taxes? Is it better to pay taxes and put your excess cash in a tax advantaged asset like an Infinite Banking policy? Jason and Kyle discuss paying taxes, buying assets, and where to get started with Infinite Banking. Link to blog referenced in the show - https://cashvaluesolutions.com/blog/why-would-you-start-an-ibc-policy