Welcome to our latest episode! We’re excited to introduce Chris Miles, the Cashflow and MAX ROI Infinite Banking mentor, who’s here to revolutionize your approach to financial prosperity. Renowned as the “Cash Flow Expert,” Chris is a trailblazer in the realm of creating rapid cash flow and lasting wealth for entrepreneurs worldwide.
Having garnered recognition from esteemed platforms like US News, CNN Money, and Bankrate.com, Chris is acclaimed for his ability to deliver life-altering financial outcomes through his company, Money Ripples. Departing from the traditional financial advisory landscape, Chris realized the industry’s failure to provide effective pathways to immediate financial success. This realization fueled his mission to empower individuals to achieve financial freedom swiftly and securely.
Retiring at the age of 28, Chris has dedicated his career to sharing his proven strategies through influential platforms like Freedom Fast Track and Money Ripples. By debunking prevalent myths surrounding money, Chris enables entrepreneurs to thrive financially while prioritizing their passions.
In this enlightening episode, Chris dives into the realm of utilizing life insurance as a dynamic investment tool. He delves into the challenges and ethical considerations within the insurance industry, offering invaluable insights into leveraging insurance policies for both adult and child savings. Exploring the spectrum of life insurance coverage options, Chris illuminates the benefits of investing in a secure and reliable environment.
With his engaging and practical presentation techniques, Chris equips small business owners with the tools to achieve unparalleled financial prosperity, enabling them to spend more time pursuing their passions. Don’t miss out on this transformative conversation with Chris Miles – tune in now to unlock the secrets to financial abundance and peace of mind!
HIGHLIGHTS OF THE EPISODE
00:23 – Guest Intro: Chris Miles
02:43 – The benefits of using life insurance as an investment tool
04:05 – Challenges and ethical considerations in the insurance industry
09:50 – Using insurance policies as a savings tool for adults and children
15:06 – Exploring options for life insurance coverage
20:57 – The benefits of investing in a safe and secure place
25:09 – Engaging and practical presentation techniques
If you found this episode substantial and want to dig deeper into real estate, or maybe you want to discover better investment opportunities, be sure to check out www.tempofunding.com.
CONNECTING WITH THE GUEST
Website: https://moneyripples.com/
Linkedin: https://www.linkedin.com/in/chriscmiles/
Instagram: https://www.instagram.com/chriscmiles/
Youtube: https://www.youtube.com/@moneyrippleswithchrismiles
Linktree: https://linktr.ee/moneyripples
Full Transcript:
Intro: Welcome to the BigMike Fund Podcast. Where you learn about advanced wealth building strategies from real estate investing to creating massive ROI and securing retirement profits. So pour yourself a cup of coffee, grab a notepad, and lean in. Because Big Mike has got the mic. Starting now.
Mike Zlotnik: Welcome to the BigMike Fund Podcast. I’m the Big Mike, Mike Zlotnik, and today it is my pleasure and privilege to welcome back my really good friend, Chris Miles. Hey, Chris.
Chris Miles: Hey, Mike. It’s good to see you again.
Mike Zlotnik: Good to see you too. We just saw you, not long ago, in sunny California, at the Collective Genius Mastermind.
Chris Miles: Yeah, if nobody else knows, Mike can really shake his hips, I’ll tell you that much, you know. I don’t know about that. We watched him do a little ballroom dancing, you know, when I did an instruction when I spoke that time.
Mike Zlotnik: Yeah, for those who don’t know, Chris is a professional ballroom dancer in his other life. Before he became the infinite banking guru, the Money Ripples, he was doing ballroom dancing. Tell us a little bit about that. And of course, you had to stand up and teach us, show us a couple of moves and have to wake us up and force us to move a little bit,
Chris Miles: Especially after lunch. They gave, they gave you and me like the worst time slot to speak. Didn’t they? So yeah, you have to wake people up a little bit, but you know, as a little minor correction, I wasn’t a pro.
I never hit professional status. I was trying to stay out of the professionals, but I stayed in the amateur route and still was one of the top in the nation, the amateur circuit. Right. So I had done that for several years and up until the early two thousands, then stop doing it and end up going more of the route of what we teach to people today and help them get financially free.
Also, now more of a marathon runner. So I’m doing a lot more of that than I’m doing anything with ballroom dancing.
Mike Zlotnik: Yeah. But it’s an amazing journey. I have to attest. And I know people listening to the podcast, they can’t see it, but both Chris and I presented at the Collective Genius in the afternoon after lunch, people were sleepy and tired and Chris got up and had everybody get up and had everybody move and taught us a couple of moves, how to make the hips moving without forcing yourself to move the hips by keeping the right posture. And then I guess bending the knees in the right sequence.
Chris Miles: That’s right.
Mike Zlotnik: That was really cool. Appreciate that. But now let’s talk about, sort of, what’s the latest and greatest in the world of Chris in the form of money ripples, infinite banking. What’s new in this world? What’s changed? Interest rates are obviously up. So how’s it impacting infinite banking? People doing more or less? What’s different? What’s better? What’s worse?
Chris Miles: Yeah, there’s some, for the most part, it’s better, right? I mean, cause higher interest rates also mean higher dividends that you earn on the infinite banking. You know, when you have your whole life insurance policy, they’re not market driven.
So even if stocks go down. Nothing happens to the whole life policies, right? They’re, they’re irregardless of the market. They always perform. They always go up. They’re guaranteed to go up. But with higher interest rates, that’s also good for them because they make a lot of their money and that they pay their dividends based on higher interest rates.
So that’s good for you. What’s not as good, of course, is when you borrow from it, because now if you try to borrow from a bank, you can borrow one of two ways. If you borrow from a life insurance policy. Now, when I say borrow, I don’t mean you’re borrowing from your bank. Term insurance policy, which is just a death benefit whole life has a death benefit, but it also has this tax free savings account inside of it that you can actually either withdraw money from, which is always an option, or you can get a line of credit against it, either through the insurance company or through a bank.
And right now, the banks, because the interest rates have been higher, you don’t want to get a bank line of credit against your life insurance per se, because you might be paying easily. Eight to 9 percent on that money, where with the insurance company, I’m only paying about 6 percent on that money, you know, when, now someone might ask, well, Chris, why would you, why would you borrow your own money?
And the answer is. You’re not, you’re not borrowing from your own money. That’s the key difference. People will try to tell you that you pay yourself back and all that stuff in the infinite banking space. That’s not true. What you’re really doing is there is a line of credit that you get from the insurance company.
Now, the reason you want to get a line of credit against the policy, rather than just withdrawing the money, because if you withdraw the money out of your policy, you’re no longer earning interest on that money. Right. Just like if you pull money out of your savings account, you’re not earning interest in your savings account anymore.
It’s you’ve pulled it out. You’re now just making money in that investment, which is great. That’s still a good thing, but the added benefit with using life insurance as your savings account for investing is that when you borrow against the policy, which means you’re getting a lot of credit from the insurance company, they’re giving you their money.
But at the same time, your money’s still in there growing compound interest tax free. You’re still compounding your money at a good rate because again, interest rates are higher while you’re also borrowing at a very reasonable rate too. And so now you’re able to take that money and make money in your investment still.
But at the same time, you’re able to get a net gain. If you do it right, you can get a net gain on your policy while also making money in investment. So like, for example, Mike, if someone goes and puts, money with Tempo Fund. They use money from your savings account. Yeah, they’ll make money from your fund.
But if I use my life insurance to go invest in your fund, right. And I use that instead, I’m still making money inside my life insurance policy. Cause I’m not pulling it out because I’m getting that line of credit. But now at the same time, even though I’m paying them interest, I can net gain on the interest that they pay me.
And then I still make money in your, in your, in your, your funds, right? So that’s kind of the cool advantage that I can make an extra, maybe one or 2 percent rate of return on top of the returns. You’re already going to pay me because I use this strategy versus just using my savings account.
Mike Zlotnik: Yeah. I appreciate that clarification. So, the wisdom is to open whole life infinite banking policy, the way you structure them with a lot of cash value, and then borrow against the policy from the insurance company, not from the bank, insurance company. And that loan is secured by the cash value of the policy. And the current rates. You said around 6%.
One question, folks who borrow, who, who, who established this policies a few years ago and the insurance company had contractual 5%, can they jack it up to 6% today or is it still contractual. What the rate on the loan that they give you is, is it floating with the way. That’s right. Float. Cause basically, yeah,
Chris Miles: It floats. Yep. So, if each year that now they only change their, their interest rates, usually once per year, usually at the calendar year. So, if interest rates are going up, they’ll announce usually like around November, December of the previous year saying next year, we’re going to pay X percent on our dividends.
And then they’ll even announce if there’s a change to on the loan rate, that might even announce the loan rate changing as well. So yeah, they’ll, they’ll do that about once per year if they don’t keep it the same. And I like to use insurance companies that don’t change a whole lot because there are companies like the Northwestern Mutuals of the world, you know, where they love to like inflate their interest rate one year and then they crash it down the next year so they can still afford to pay.
Right. Because cause they’re losing money that year to try to drive up more sales and then they have to. You know, get a much drastically lower dividend rate. And I don’t like those kinds of companies that play those dumb little games with you. You know, I like ones that like to stay very steady, you know?
So like, for example, one company I’ve used a lot, you know, like they’ve, they’ve paid between 5. percent for over 15 years or over the last 15 years, even during the recession, they were still paying like 6. 34 percent when rates were even a little bit higher. And there are 5. 75 now, but they’ll probably raise up over six in 2025 because those interest rates Staying up higher for longer.
You know, and there’s other companies that, you know, they’re paying 6 percent or so right now.
Mike Zlotnik: Who are the steady companies? Is it like MassMutual?
Chris Miles: Exactly. MassMutual is great, especially if you’re in New York, you know, MassMutual is a good one. That’s kind of the number one I choose for New York state.
Outside of this New York state. Cause it’s like his own country in New York. As you all know outside of that, I might use pen mutual a lot. They’re they’ve, they definitely give me, and it’s not because they pay the highest dividend either. They’re paying, they’re the ones paying 5. 75 right now.
Where mass is paying 6%, but because I can, I can adjust the cost more easily with pen mutual. I can even make it to where. It still grows faster in that cash value component, that savings account. It can grow faster because there’s less costs coming out of it than what mass mutual will charge. So that’s the thing never just go off of the dividend, what they, whatever they claim, right?
Because it’s not about the dividend. It’s about how much can we adjust those costs? How much can we lower those costs so that the money can grow faster?
Mike Zlotnik: Yeah, that’s a very powerful argument and I’ll say this many, many, many years ago when I was ignorant. I didn’t know my first impression or at least What people have told me about these whole life or any other of these insurance policies They are fee heavy There were fee riddled policies with a lot of money, a lot of commissions for the agents and for the companies.
And there was some truth to that, right? If they’re structured the wrong way they can be expensive on fees. But the difference is you do things very different. You are anti Wall Street. You do things differently from what traditional agents do. In other words, you design these policies to benefit the investors more than they benefit you as the agent.
And that’s, that’s an important difference because ultimately what you want is long term relationships with folks who work with you and you’re focusing more on their benefits rather than your own benefits and lowering the fees wherever you can lower the fees.
Chris Miles: That’s right. That’s, that’s one thing that’s, yeah, it’s, it’s tough to see because, you know, even if agents have the best of hearts, right, they’re only taught to do what they’re taught to do.
And usually it’s the insurance company teaching them how to do it a certain way. I, I, I actually like to refuse to learn from my insurance companies that I work with and where I’m independently brokered because I want to figure out how to do it like an investor, not like an insurance company wants me to sell it right.
And that’s, that’s a key difference. So, there’s very, very few people even know how to minimize cost of a policy and of that small percentage. Even the ones that do know, refuse to do it because it cuts their commissions back so much. And the truth is most insurance people you see out there, that is how they make their money.
They don’t have other streams of passive income coming in where they say, I don’t care if I don’t make a dime on this policy, I’m still, you know, I got to make money, I got to feed my family. And so they’ll, they’ll find something in the middle. Maybe it’ll be good for you, but it won’t be the best. And that’s a key distinction where we had to make it a rule or a company that said, listen, even if it means that we get paid.
Literally like, you know, we get paid about 22 percent of what another agent gets paid. We’re okay with that because that means that at least we’re getting the client, the best deal. And the truth is when the client gets the best deal, they end up doing more, a bigger policy anyways, because they know they get a better ROI.
So the funny thing is even though we get paid almost a fifth of what other insurance agents get paid on the, on doing a policy, People will do bigger policies because they know they make a higher return and we end up making sometimes the same or more than those other insurance agents because they’re just ripping people off.
Mike Zlotnik: Yeah, that’s a very fundamental view. You, you take a long term perspective and really your policies serve different needs. You’re serving investors. Real estate investors, not only investors, we use the policy as a way to park cash and then borrow against the policy to be able to make investments. Yeah, exactly what you described at the beginning of the podcast.
Well, other agents sell it as, I don’t know, life insurance. Some of them sell it as. A way to retire but they’re solving a different problem. They’re communicating differently And of course they’ve been taught by the insurance companies that are looking to maximize their own profits and maximize agents commissions, too So it’s there’s nothing fundamentally wrong with either Party, or you versus the other folks But you solve a different needs because you solve a different needs you do things differently and it it is not as attractive on the surface but on a long term basis these investors can actually as you said open second third policy and makes a lot of sense.
So let’s continue the discussion. How do you structure these policies? In other words, when you work with a couple because it works as a, both a dev policy and a savings engine. So is it better to do it on a woman than a man about the same age because it’s a less expensive policy? Is it better to structure the same thing?
But use a kid and put the policy to the name of the kid, in essence, use the same way to borrow against the policy, jam the cash into the policy, but reducing the, the, the general overall cost. And because it’s a still life insurance. So they really underwrite it based on the age, the health gender of the person who, who is taking the policy, right?
Chris Miles: That’s right. Yeah, it’s, it’s kind of interesting nuance because it always is case by case how we work it. But, you know, for example, I mean, it’s not too uncommon that whoever the breadwinner is, that’s who we go for first, because I won. I mean, it’s, it’s, it’s like you said, it’s providing an insurance still, even though we don’t really focus on the death benefit as being the primary thing.
It’s almost like icing on the cake. It’s still, you want to make sure you’re protecting them too. But but depending on the situation, right women do statistically live longer. Therefore, it’s almost like. Women have this, this, and I say this in the, and not a bad way. This is a good way that almost like if you’ve talked about in golf terms, they have like this two year or three year handicap, right?
Because they live two or three years longer. They’re there’s costs are cheaper. So if I were to have two spouses, like a husband and a wife, say they’re both 45 years old. The thing is the wife will have lower costs than the 45 year old husband, even if they’re both in perfect health. Why? Cause they live longer as their insurance costs are cheaper.
The only time it gets even is if that wife were. You know, if the husband were 45, the wife would be like 47, 48 years old. Then they’d be about apples, apples, pretty much even, right. Because women live longer. So sometimes if, if someone wants to get policy on both people, or maybe just one, sometimes we might choose the wife because in many married couples the wife might be the same age or younger anyways, and because she lives longer, as long as she’s in good health, she might get the highest ROI compared to the guy.
And you could put in a lot more money into those policies too. So. It does depend because it depends on, you know, who’s earning money. Who’s not, you know, there’s little nuances that the insurance company wants us to do, but that’s things we can play with with kids, you’re right. Kids. I mean, of course they live, they have a much longer life expectancy supposedly, right.
They should at least. And so they’re cheaper insurance costs, but that’s also kind of a catch 22 because their insurance costs are so cheap. You also can’t put in as much. Here’s, here’s a cool thing with adults, right? With at least with the way we design the policies, you can put in up to 25 percent of your stated gross annual income per year into a policy.
So if you make say 200, 000 a year, you could put in about 50, 000 a year, max into these policies. That’s how much you can contribute way more than a 401k. And it’s more like Roth IRA taxation, right? Is this after tax dollars, you put it in gross tax free comes out tax free. Okay. Well, with kids, you might be maxed out about 000 a year for the kids because their insurance costs are so cheap and they don’t want you buying a bigger death benefit on the kids than what the parents have because they’re going to say, wait a minute, because remember underwriters, people that are, you know, the insurance companies, they’re only looking at the death benefit.
They don’t look at it like we do as investors. They look at it as a death benefit. So they’re thinking, why would your kid need a bigger death benefit than you? You make the money they don’t, they don’t need that much death benefit. Right. So there’s never like an unlimited amount of money, you know, of insurance you can never get because insurance companies will stop you.
They will question you nickel and dime you to make sure you don’t get overinsured, so to speak. That’s a very, just be aware of that, but yeah, you could definitely do on kids and, and people use this instead of five 29 plans, cause it’s not gambling the stock market.
Mike Zlotnik: Yeah, that’s a very powerful idea. And of course, it’s important to know limitation and I didn’t know that, that they would I guess question if you try to insure one of your kids who doesn’t work and they don’t have any income, they’re going to limit them pretty hard how much they can They can purchase in the insurance policy.
I guess you can do it gradually. You can buy multiple policies. I, that’s one of the ways to do this.
Chris Miles: They generally try to limit the death benefit for the kids. About three quarters of whatever you have as the adult total between all policies that you have.
Mike Zlotnik: Yeah. Understood. But all of this requires a little bit of planning, a little bit of a thought process. So for those folks who want to do more they probably should just chat and figure out their own individual circumstances and what’s doable, what’s not, all that is, is really, really powerful. Next question. How do most people use these policies besides the saving engine and it continues to grow over time?
Thank you. Is it better to just try to get one big policy or is it better to do lettering or, or, or multiple policies over time? Of course, you got to have a good organizational system to track and make sure you keep the payments. But is it just better to try to jam as much as you can or just do enough where you feel comfortable and another next year do a little more, next year do a little more.
And again. The goal is obviously different. One is if you’re using it for, to build the cash value and have access to cash, versus if, if you’re doing, I don’t know, using it as a retirement plan, not planning to draw from the policy. It’s a very different objective, right?
Chris Miles: That’s right. Yeah. It’s so one thing that’s crucial with our policy is that, and this is a mantra in general, you can always pay less into a policy, but you can never pay more than how we design it.
So for example, if you put the max amount that you can’t contribute to it as 20, 000 a year, almost like you’re trying to contribute to a 401k, your minimum, depending on your age and health rating is probably going to be somewhere around four or 5, 000 a year. So that’s what you’re actually required to put in is that four or 5, 000, even though we can contribute.
Up to 20, 000. But if you ever want to contribute 21, 000, if you’ve been max funding it, they’ll say no, they will return the extra 1, 000 back to you. Otherwise you’ll trigger taxes, which we don’t want. Right. Yeah. So you’re
Mike Zlotnik: overfunding the policy, which will cause problems.
Chris Miles: So yeah,
Mike Zlotnik: you could overfund even less, but you can’t go more, but you have a minimum.
Chris Miles: That’s right. So whatever we said is the limit, that’s the limit. But that doesn’t mean that down the road you can ladder it like you’re saying where you could get another policy. So with our clients, again, we’re always looking at from a passive income approach, right? We’re trying to figure out how to get your passive income up also using this policy too.
And so for example, somebody only is doing 20, 000 a year. But then they start investing. Maybe they got a quarter million. They’re investing. It’s kicking off 10 percent return. Now they got this extra 25, 000 a year trying to figure out what to do with, right. We can do another policy. It could be on them.
It could be on a family member, like a spouse or a child business partners. Even if you want to do it that way, you can actually get another policy and then set that up. So even if it’s on yourself, you can have as many policies as you want. As long as it doesn’t go above the total death benefit of what the insurance companies think you should have, which is usually Like no more than about 20 times your annual income, but I’ll tell you the way we design them, because we try to minimize the cost and we minimize the death benefit.
It’s, it’s almost impossible that you’re going to max out the insurance side. So, so I only, I only recommend people get new policies as their cashflow improves, as they have more cash to put away, then they can start doing more of it.
Mike Zlotnik: So a quick question. So this is makes total sense. It, it does need ongoing reviews and periodic planning to adjust for individual situations for live events and so on.
What about, do you ever mix up? Turn life as an additional insurance to protect bread winner, somebody who’s who is the key income earner for the family. And let’s just say it’s a man, man is getting a policy, but the policy is cheaper for the, for the spouse. And the. Savings mechanism policy is mostly with a woman while the man still needs additional term policy.
I’m just curious if you, if you mix up some term policies ever to enhance that benefits for just in case this term policy is generally a lot less expensive. Now that money is completely wasted, but at the same time it’s a, it’s just a small amount that the rest of the money could be put on a whole life.
Yeah. I mixed it up.
Chris Miles: And so. Yeah, with the way we design our policies, that’s part of the secret is that there’s ways to blend like a term insurance rider into the policy where it’s cheaper cost, but allows you to put in more money, right? But that’s not all of it. And usually it converts it inside the policy while you’re growing it.
But I mean, in my own example for myself, just a few months ago, I set up a new 3 million, 10 year convertible term insurance policy. Right? So I
Mike Zlotnik: What is a convertible term insurance policy? It can convert your whole life at some point?
Chris Miles: Exactly. Yeah. So there’s non convertible term insurance, which means It doesn’t convert to anything that’s permanent.
It could be, you know, even universal life, even though I don’t recommend those typically, cause they’re a little bit more risky but it can convert to whole life. And so I bought policy. Like for me, I got another Penn mutual term insurance, convertible term insurance policy that I could convert at any time during those 10 years.
And here’s the cool thing. And I’m not saying the cool thing is if I ever get cancer, for example, and it’s terminal or whatever it might be, right. If I get cancer and I’m no longer insurable, like I can’t get new insurance. If I have that convertible term in place and I have it as a perfect health rating right now, I could convert it even after I have cancer and go ahead and convert it at that perfect health rating to a new policy.
And they cannot deny me. I just, in fact, have had this happen with one of one of our clients where she got a term policy a year ago. Then the next year, she’s her husband said, Hey, let’s get a whole life policy on her. So I forgot about the term policy. So he said that we’re going to get this new whole life policy.
And then all of a sudden they rejected it. Something had happened with her health over the last year that has said, nope, you’re no longer insurable denied. Well, I can’t remember what it was, but as I was going through the system, I found her other policy. I said, Oh my goodness, she’s got a term policy. It was the same day that we got the denial letter.
I said, here’s a term policy. Let’s go ahead and convert this. When it showed her at the perfect health rating, convert it now to policy. We’re going to get. And the funny thing is a couple of days later, it came back approved at that health rating. So I put in the application the same day they denied it and they couldn’t deny it because it’s a convertible term policy.
So that’s, that’s one of the benefits that even if cashflow is tight, if you’re paycheck to paycheck, I don’t recommend people get 000 a year before you get whole life policy in place. But if you’re paycheck to paycheck, get a term. And even in my case, I got a 3 million term policy on myself because I said, Hey, I’m already got some policies maxing out, but let’s just get this term in place.
Cause I want to protect my family first and foremost, but down the road, I may want to get another policy or a couple of policies I could break off and out of this thing and, and and, and having the whole life policies that I know are guaranteed for me.
Mike Zlotnik: That’s really powerful. It’s all in the design. And it’s all knowing the. Insider business, insider opportunities, what you can, can do. And that’s the power working with you. It’s that simple. So for folks who have light liquidity, they can work with you with a convertible term into whole life, and folks who have ton of liquidity and they’re looking to deploy capital safely.
The best way to put it, and I think you taught me this, I, forgive me. I think you said this, this is, I’m, I’m, I’m now quoting famous Chris Miles, the author of Infinite Bank, no, I’m just kidding. But you are a celebrity, you are definitely a celebrity and then, so I’m quoting you. You told me a whole life is not really a insurance policy.
It is a savings. It’s a conservative part of your investment portfolio. The best way to think about this is whole life insurance policy ownership is investing conservatively, having conservative investment that works in good times and works in bad times. It’s a steady, consistent, conservative investment.
Chris Miles: That’s right. Yeah, it’s not sexy, but that’s what makes it sexy, right? Because You know, you can, you can always count on it. It’s always going to be there. Even, even lately banks, I mean, banks have been failing and still failing even to this day, and now there’s even stress on regional or smaller banks because of all the commercial debt they’re holding.
There’s a lot of stress there. And so to know that I have a money in a place where I’m safer than what the bank’s been doing, especially some of these regional banks. I know at least I can store my money even if it’s my emergency fund money. I can keep it there Let it sit there. I can still access it whenever I need it But it’s going to earn a lot more than point nothing percent in my bank account And it’s safer and it’s also protected from lawsuits and creditors So if somebody sues me they could get to my bank savings account, but they cannot get to this money And same thing.
If I’m trying to get my kids, I have a daughter as a senior this year in high school. She’s, you know, went to go qualify for scholarships. The cool thing is they couldn’t count any of this money in my life insurance policies as an asset, even though it counts as an asset. When I go to apply for a mortgage, right.
It doesn’t count as an asset when I’m trying to get a school loan. Now, if I had a five 29 plan in my daughter’s name, they would count that against me and give her less money for that scholarship for that school. But as a result, because you know, that money’s being held elsewhere where they won’t count it.
You know, that’s where I get a full benefit. So there’s, there’s so many different reasons why to have it as part of your portfolio. Not to mention, like you said, at least it’s one place, you know, it’s guaranteed it’s going to pay at least, you know, five, 6 percent tax free dividends. You know, that’s, that’s good.
I mean, I wish I could get that in the stock market sometimes, you know?
Mike Zlotnik: Yeah. Yeah. Everything you said, just, just, just massive. It’s a it’s protected against credit. It is, Not counted towards cash available to pay for college for kids. And I’m not sure it may be different applies into some circumstances where folks apply for long term care.
And if they look like they got too much cash in the bank that may be a challenge too, but if they have money in the life insurance policy, that’s probably not going to be considered because long term care is super expensive and very applicable to elder folks with a lot of. Net worth, they want you to drain your net worth savings.
Imagine you have a gigantic policy with millions of dollars of cash value versus that cash in the bank. It, it’s just, it’s a remarkable, it’s a remarkable difference, right?
Chris Miles: That’s right. You got it. And that’s another thing too. I mean, even when you talk about long term care, right? I mean, some people say, well, am I too old for this?
I’m 55. No, I’m, I’m almost 47, you know, I’m almost 50 and, and I can still get a great policy. Now if you’re in the, your seventies or eighties, you probably wouldn’t use this strategy as like what we’re talking about here, like where you’re trying to overfund it and invest with it. But but still there’s, there’s definitely options there. And like I said, we can always insure other people too.
Mike Zlotnik: Another really important benefits for the ultra high net worth, right? The dollars that are part of the life insurance policy, they’re not counted as part of the estate. If I understand this correctly.
Chris Miles: Yeah, they’re counted as your total estate, but they’re not taxed in the estate. So that’s one of the great benefits. So many times people, if they’re worried about, you know, whoever, if it’s Republicans or Democrats in office, whoever might be We’re trying to ruin your life with taxes. The good news is that the insurance money is tax free and whatever you get it at tax you know, based on the time that you set up the policy, whatever the tax rules are at that time, you are grandfathered in.
So unlike IRAs and 401ks where they can change the rules on you at any time, they cannot do that with life insurance. So that money is used to become a tax free money. It comes in that might even help you pay off any estate taxes. If they decide to charge them to you.
Mike Zlotnik: Yeah. It’s like a raw fire rate that they can cancel the raw status. Cause it’s been discussed a few years ago. There was a number of proposals to Put a limit on the raw fire rays, et cetera, et cetera. So
Chris Miles: That’s right.
Mike Zlotnik: Very, very powerful. Chris. I appreciate your wisdom. We are past the time as well as like all good things come to an end. And so does this episode, any, what’s the best way to reach, to reach out to you?
I know it’s money ripples. com, but email, social media, what else, how would folks reach out to chat about their situation and their policy and their needs?
Chris Miles: Yeah. Best ways to reach out to us through money ripples. com, which also has a lot of continuing education. Yes. I’d like the money ripples YouTube page that has our podcast as well. So you’re more than welcome to follow our podcast, the money ripples podcast too.
Mike Zlotnik: Yeah, that’s awesome. I, that’s a great podcast. I’ve been a guest, you’re a guest on my podcast. It’s a great adventure and, and really you entertain people. Besides all this educational, financial literacy, Ante Wallstreet you also, I guess, can do a little bit of move your hips and do a little dance here and there.
Chris Miles: So you can’t see it from this camera angle. Right. But yeah, we definitely do something like that.
Mike Zlotnik: You got to do this once in a while. You, you get all these smart people in the room and they’re all brainiacs and you got to wake them up and just say, Hey, all right, everyone get up. They do it in Japan, middle of the day, everybody moves.
So I’m grateful for that. It was both really cool, practical, and really exciting to be part of the presentation where instead of getting some boring spiel, we, we, we got to enjoy a little bit of moving around and hearing a story. So thank you, Chris.
Thank you.
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