Financial Wisdom & Folly (3)

ThornCrown Covenant Baptist Church

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We want to dive into that some more today and kind of go through some things that can help us to save money to Store money

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Preserve wealth that kind of thing Especially for the the really nasty times that are coming that already here so I Wanted to pick up from last time we were talking about justice and poverty and How to view those things and how to engage?

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the poor and One thing that I always like to share with with the poor is

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You you never want to just give them money it's always good to give them a track the gospel something else that will give them the the truth because that's really what they need and And one of the things that I like to use to cement that reality is in Jesus Sermon on the

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Mount If we if you turn with me to Matthew 6 in verse 33 so in Matthew 6

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Actually, we'll start at verse 25. I'll be reading from our brand new

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LSB Bible We got for for our son

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Matthew 6 starting in verse 25 For this reason I say to you do not be worried about your life

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As to what you will eat or what you will drink nor for your body as to what you will put on It's not life more than food and the body more than clothing

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Look at the birds of the air that they do not That they do not sow nor reap nor gather into barns and yet your heavenly father feeds them

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Are you not worth much more than they? And who of you by being worried can add a single cubit to his lifespan and why are you worried about clothing?

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Observe how the lilies of the field grow They do not toil nor do they spin yet? I say to you that not even

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Solomon in all his glory clothed himself like one of these But if God so clothes the grass of the field, which is alive today and tomorrow is thrown into the furnace

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Will he not much more clothed you? You of little faith Do not worry then saying what will we eat or what will we drink or what will we wear for clothing?

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For all these things the Gentiles eagerly seek for your heavenly father knows that you need all these things

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But seek first his kingdom and his righteousness and all these things will be added to you

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So do not worry about tomorrow for tomorrow will worry about itself each day has enough trouble of its own

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This is a very key passage For Anxiety and the cares of this life, especially with poor the poor who don't have

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Shelter, they don't have a reliable means of income or whatever the case is and we went through the different reasons why that might be

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But one thing that I always like to share with the poor

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Is this verse? Because this verse really demonstrates that God provides for the birds the lilies the flowers and How much more how much more of value are we than Flowers and birds, right and that's what

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God is saying that if you seek God first and his kingdom and his righteousness

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By first and foremost believing the gospel. That's step one, right then

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God will Provide for you all of these things. He'll take care of you and Now this teaches us another really good lesson an important lesson about God God's use of means

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How God uses means so when it says look doesn't

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God? feed the birds Doesn't God clothe the the lilies of the field

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Doesn't it does he not clothe the grass So what what that means is that God is not literally putting clothes on them or giving them food

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But he's using his providence to provide for them through means Right, that's the it's not like some supernatural giving of manna from heaven

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It's more through God's providence and God's providence if you all recall from our catechism

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That we That we have from the Baptist catechism if we if we look there, we'll see well if it lets me see it

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But we know that Providence is

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God's governing of all things in creation According to his will and I don't know why this isn't working so But that's really oh

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I think I found it. Okay Yes, here we go Okay What's that one?

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Yes, what are God works of God's works of providence? God's works of providence are his are his most holy wise and powerful preserving and governing all his creatures and all their actions and then question 16

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What special act of providence that God exercised towards man in the estate wherein he was first created when

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God created man? He entered into a covenant of works with him upon condition of perfect obedience

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Forbidding him to eat of the tree of knowledge of good and evil upon pain of death So God has special works of providence and he has ordinary works of providence

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His ordinary works of providence are what we see in nature the Sun rising and setting

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The moon all of those things that order and that consistency is part of God's works of ordinary providence

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God obviously does extraordinary works of providence like Initiating covenants with man like Adam and Abraham and all of those other men in the

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Bible David so you see Those special works of providence But ordinarily

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God works through means through secondary means so God provides for us

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Through different means right? What means are those? How does God provide for us?

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For our needs our food our shelter. How does he provide for us? Not a trick question simple simple working a job

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Right God provides for us through a job he helps us to Find work get a job and that's how he equips us and that's why

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Job was also wealthy it's not that God just poured out blessings from heaven by default it was no it was because Job worked and That is the principle in the

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Bible that if you don't work, you don't even eat So you have to work we have to work because that was part of what

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God instructed man to do in the garden He needed to work the garden. It wasn't hard work or cursed cursed work, but now the curse heightens our

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Struggles to work from the sweat of our brow in order to get something get what we need from the earth from our money and all of those things so We have to work, but that's how

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God provides for us he gives us a job or a husband right that will provide and those things and So that's an important lesson of how

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God primarily works through means He works through these means and we shouldn't try to go around to circumvent these means

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Because those are the means that God uses right so we can't ignore or go against or around those means

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That's why the Bible repeatedly warns in the book of Proverbs Not to try to get rich quick or not to do some scheme where you make some money or steal

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Right because that's not God's means of provision. That's the devil's that's the devil stealing killing and destroying

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That's sin When you go through those means you will likely

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You will suffer consequences you will in this life and in the next if you don't repent right and So that's really important for What I always like to share with homeless folks poor the poor is

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This passage I think It provides a lot of hope Because it's just a matter of look just make

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God a priority seek God seek God through His Word believe the gospel and God will lead you into finding ways to provide for you

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He will help you to find a job and a place to live and all of those things God provides right, so that's very important to Have a good understanding of because in a lot of ours and a lot of churches and in a lot of Movements So to speak in the church

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There tends to be a lot of this pietism and a lot of this like this

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This you know, a popular example is George Muller. Anybody know who George Muller was?

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yeah, he was a He lived during the Victorian era with Charles Dickens and he had orphanages

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He was very well known for his orphanages and he had this thing where he had this conviction and you know,

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Paul Washer uses the same principle that His conviction was we're not going to ask anybody for anything

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We're not going to ask for anything because we believe that God will provide Right, so that's this principle that he lived by in saying well, we're not going to ask anyone for any kind of financial help any kind of physical need needs help like food or nothing and You know sure enough the

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Lord would provide and God would move people to Provide food or even when times were we they didn't know where was the next thing was going to come from But there's something that George Muller was leaving out of his conviction

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There's something that he was doing that was actually in a way Reaching out and letting people know what he was doing and encouraging people to give to his ministry

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This is part of where some some folks in the church don't understand

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God's use of means and One of the things that George Muller was very well known for was his newsletter he was the one who pioneered the concept of a ministry newsletter and The concept of a ministry newsletter was fairly new and Muller would talk about all the things that God was doing in his orphanages and in his ministries

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He said look God is doing all these cool things all these amazing things and look how he provides and look at this and that And the other and people would devour his newsletter they would look forward to it and they would read it and obviously that was giving insight into what what what

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Muller was doing and what What ministry work he was doing and that would encourage people to give money to his ministry.

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So it's a failure to recognize The means that God uses through people and through normal means through the means of publishing

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Media right newsletters or books or emails advertisements, whatever it is

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Those are all means that God works through and they are not impious means of using them.

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It's it's it's disingenuous to say well We're not going to ask anybody for anything, but then you publish a newsletter and you tell people everything that you're doing

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It's it's disingenuous because in a way That is a form of advertising you're advertising yourself in your ministry and Look, look at everything

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God does and look we didn't ask for a night for anything But it's like that's not how

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God works. God uses means and it is perfectly appropriate to ask for support

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When the situation is appropriate it calls for it It's not appropriate to ask for support when you don't work, right if you don't work you need to get a job

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Right. That's the big thing but Paul asked churches for money in The book of in the

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Acts and Corinthians. He said hey prepare an offering when I get there So when I get there, I can go and distribute it to the others churches that are in need or send a representative

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With you so that he can help provide for the other church that's in need There's nothing wrong with asking for financial support obviously it gets abused with Prosperity churches and ministries like, you know, these just buffoons on TV like Jesse Duplantis and Kenneth Copeland and all these got

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Joel Osteen Even locally here at Bundy Living Faith, right? You have a lot of these prosperity

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Ministries that are false satanic They're of the devil they're not they don't belong to God So there's a balance the way we need to have a balance in How God works and how

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God moves and not to judge People and thinking well, he's extra spiritual because he doesn't ask for money

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Or to think that oh, well, he's not a spiritual. He doesn't trust God as much because he's asking for money

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That's like yeah, but you have to accuse Paul of being on spiritual Paul the

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Apostle Who wrote most of the New Testament? Right, so no, let's not be foolish about How God works and moves right and So that's something that I think is important to have a good understanding and balance

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Understanding of because it's very common. You see it's so common today Like I said,

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Paul Washer does this he he says that we don't ask anybody for anything And it's like you but you have a newsletter you have all kinds of Advertisements on your website and your newsletter and you're talking about all the exploits that your missionaries are doing in this country and in that Country and look at all the work and the church is being planted and stuff.

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That's a form of advertising right, so It's important to understand these things properly and and to have a good grasp of What the word says

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And how God works, right? So, I think also there's something else that I wanted to kind of tackle

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Today I talked about infinite banking a few weeks ago a little bit and I talked about how we used sort of Dave Ramsey's method for saving and for short -term savings and for budgeting right and one of the things

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I wanted to go through I have I have the financial peace University booklet that we used when my wife and I took the class several years ago when we first got married and Like I said some things were helpful and Now that I understand certain things better Some things were just downright horrendous advice

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Okay, so we want to make sure How do we need to be careful with who we put it you can put it down put it down?

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Just put it down. It's fine So this is what we really need to understand when it comes to Who you trust and making sure you understand what they're telling you

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What advice is somebody giving you and is it good advice? Or is there better advice out there that you may not be aware of and that this guy or this advisor may not be aware of either

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Or may not have a good understanding of We have to really be careful with how we

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Handle our money because there's so many schemes out there including government schemes like retirement accounts and 401ks and college savings plans and all these different government programs and accounts that May look like they're they might be a good investment or something to get into but if you don't have anything to compare it to or a good understanding of what's really happening or what the

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The cost is for having something like that then You're not going to know better so I'm going to go through the seven baby steps that Dave Ramsey recommends for pretty much everybody step number one is to have a thousand dollars saved in an emergency fund right and This is this is generally good advice.

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It's good to say for a rainy rainy day and Because things are going to happen right things are going to break down Houses are going to get worn out need to be replaced repaired cars

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You know we talked about cars last time you know just to give you an idea we save We save a hundred dollars a month for car repairs just Just for car repairs and tires and all that stuff

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So that helps us so that when we need to have a repair something breaks down the check engine light comes on The tires need to be replaced which ours do

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So we have funds saved up for those very things those costs now

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Saving for an emergency is also important so that you don't get yourself into bigger trouble

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If you have a financial need and a real emergency, okay, we're not talking about oh, well. I can't buy

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Cookies today because I'm not I don't have enough money, so I'm going to need to take out You know take it out of my savings or somewhere like no obviously a real emergency

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Right like something that you need in order to go get to your job like a car or whatever it is a real emergency

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It is good to have money saved up for those kinds of events that are going to happen

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They're going to happen So expect them to happen because they will happen, but when they when when they when they

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Do happen you'll be better prepared in those circumstances now a $1 ,000 is not a whole lot so We're going to get to the next baby steps to see what he what else he says now step number two is to pay off all debt except the house your mortgage in other words and Utilizing the debt snowball method so that the debt snowball is just basically if you have several debts

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You take the the debts that have the lowest amount and you pay the minimum

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You pay the lowest amount first And then you pay the minimum amounts for all of the other debts and then once you finish paying off the lowest one

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Then you add that minimum payment to the other one to the next one and then it starts snowballing so that you pay them all off eventually

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In a snowball effect or you go with the one with the lowest interest That's another method but the key thing here

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The key thing here the court right now the key thing here is

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To it is good to pay off debt because the Bible says oh no man anything right

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Roman says oh no man anything except to love one another however

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There are trade -offs. Okay that we have to also be aware of so that we are careful not to Pass up on certain opportunities that can actually help us to make more money and to pay off our debts faster

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So what I mean is for example just as an example Just as an example like we can say

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Silver right now is is very affordable. It's very cheap. And so if you buy silver right now

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Which is going for about $30 an ounce right now, very cheap. So if you buy it now

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Within a very short while it's going to continue to go up and it's been going up for the past Several decades for the past several years and decades it keeps going up And so if you were to buy silver and Get weight sit on it a little bit a few years later, it's going to go significantly higher in Value and price because a lot of the things that are happening are making silver go up that we know are happening

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And there's a direct correlation to what's going on One of the big things that makes silver and precious metals go up is inflation

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Now who knows what inflation is who can tell me what inflation is? Yes Inflation is when the government prints more money

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When you print more money, it creates more money in circulation and it dilutes the amount

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The value of your existing dollars So when you create more money out of thin air with nothing to back it up with you are essentially diluting the existing currency

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Because you have the same amount of You have more money chasing the same amount of goods there's nothing that that warranted a production of money other than the government decided to print more money because they wanted to do this that in the other and so what

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That does is that devalues our money our dollar which is not real money

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It's just currency and it's devalued because the government controls it so when that happens

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The value goes down and the cost of living goes up it goes up significantly and over 90 like 97 or 8 or 9 percent of our dollar has vanished because the government keeps printing money like crazy and What that does however is when they print money this way it starts to bring a

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Significant rise in the value of precious metals There's a direct relationship there.

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That's why a lot of when you see a lot of investors or Countries like China buying heavily

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Precious metals because they are hedging they are hedging It's a hedge what it is.

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It's sort of like insurance for your money It's a hedge because when the value of money continues to inflate

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The value of precious metals goes up as well Because the value of the dollar is going down To the point where it eventually can collapse and be worth nothing which has happened on several occasions

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So There's a lot of reason there are some reasons why it would be better to if there's a good opportunity to invest in something it might be better to actually invest in that opportunity and You can use the money that you invested to pay off your debts much faster as opposed to just paying off the debt first and This is something that there's a principle built into this because What happens is that?

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when when When when you pay for something

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When you use your money to pay for something to pay off debt or to buy something you are losing

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The ability for that money to make you money you're foregoing interest on that money

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That you are that you are forfeiting by using it to buy something or to pay off debt

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That's a very important important principle Okay This is where the difference between the power of infinite banking comes in as opposed to just saving money in a savings account

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Okay, and then spending it whenever you get ready to use it So so We Very important to understand this principle, and I'll get into this a little bit more

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Well actually let's get into it right now, so One of the important things here is to understand if you save up So one of the methods that Dave Ramsey advocates that I talked about last time we use a sinking fund

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Right a sinking fund is a short -term savings account Where you save up for things that you know you're going to need or that you want to get that are more expensive

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That are too expensive for you to buy within a month basically right so you want to save up to buy for a car to buy a car or Anything you know you name it whatever a vacation

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So what you do is you save up money in your savings? For those things every month you set aside a certain amount

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Typically 10 % of your income you can save it off for these other longer shorter term expenses and That's what we've been doing we typically take like 10 % of our income

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We use it for our short -term savings to save up for insurance right because it's cheaper when you buy insurance in six -month installments or in yearly installments as opposed to monthly and Things like that car repairs as well like I said and so saving up money

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Saving up money Is is better to That so the concept of that is you save up and then when you're ready to buy something you can pay for it in cash

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And that's what Dave Ramsey said says he recommends like when you're bargaining or trying to buy pay for something take out the cash

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So you can say hey, I've got cash that I can pay for right now, and usually you can get a discount off of that You know the the power of that you can still find that there's still value in that but the dollar is just It's it's becoming so diminished that it's not that the effectiveness of that is not going to be all of that effective

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But just because the dollar keeps collapsing but But Here's the thing

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When you were saving up your money in a savings account you were gaining interest on it a certain amount of interest right what probably wasn't a lot but You were gaining certain interest on that money because it was being saved up and you had it in there and your money to some

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Extent was working for you gaining interest So the thing the thing here is that When you use that money that money you lose the interest that you were making on that money

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You're no longer going to make me interest on that money That's where the difference in in infinite banking comes in with the infinite banking concept

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When you buy a whole life insurance policy that's mutually owned and Dividend paying

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You're essentially paying for a policy that is sort of like a bank and That you're paying premiums for it, and you're you're building up cash value inside the policy, and it's growing tax -free that's another benefit of of using a whole life insurance policy because Everything you earn there is tax -free as long as it's structured correctly

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It's tax -free whereas even the interest that you make in a savings account is taxed and you have to report that on your

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Income tax right you what are they what form is though the the it's a W What is it?

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It's it's an income statement that you get from your the interest earned and your bank will give it to you

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What's that? Yeah, it's a specific term. It's a form an

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IRS form but For interest interest income now But in this situation you don't pay any tax as long as it's structured correctly and used properly now here if you keep putting money in a life insurance policy you pay premium premiums on it every month and when you when you

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When you Wait when you sorry When you earn so I get keep getting distracted when you earn

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Build up the life insurance policy you build up cash value that you can that you can borrow out of You can borrow out of this money by getting a loan from the in from the life insurance company

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So what you do is if you want to get if you want to take some money out instead of withdrawing money from the policy

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You get a loan from the life insurance company you pay them interest on it, but you get a loan

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So that instead of taking money out of your policy the money in your policy stays and so you're still making interest on that money

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The money is still there because you're taking out a loan from a life insurance company at interest at a certain rate of interest

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But you take that money out The your money still stays in the life insurance policy and it's still earning interest

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It's still earning interest and you're still getting dividends paid for it because they pay dividends at the end of each year typically

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And the higher your cash value is and your those the the premiums are the higher your dividend will become and it all piles up It continues to compound interest and that's the power of using an infinite banking concept policy through life insurance through life insurance because You don't take the money out the money always stays and it always continues to build up so if you need money you take it out of a

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Through a loan through the life insurance company and then what they do is they use your death benefit as collateral for the loan so everybody's

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Pretty much safe because your death benefit is guaranteed when you die

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Because you will die right unless the rapture happened I mean the the the Christ comes back before then but you will almost certainly die before then and so Even if you take money out and you don't pay off the loan, which you should we need to be responsible with our lending, right?

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we need to pay off the the money pay back the loan, but Your your death benefit collateralizes that loan so It's really a an extremely advantageous thing because it's also something called an unstructured loan an

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Unstructured loan has no repayment terms on it when you get a loan from a bank or from an auto

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Company, you have to set a minimum payment. You have to set certain terms you have to pay it off within a certain amount of time or a certain amount minimum amount and If you don't stick to that you can get into serious trouble

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But here there are no repayment terms It gives you a lot more control over your money and the ability to repay the loan as You're able to even if you fall on hard times

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Even if you fall in difficult times, you're still able to You don't have to repay the loan right away.

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You can wait. Okay. Well, I lost my job It takes you a couple months to get another job you get another job and then you can start repaying back the loan again

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But you don't suffer any consequences for not Paying it that month or those two months.

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So this is the power This is the power This is the power of using infinite banking concept

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It's very different. It's very different from what the traditional way that people teach us to use money like Dave Ramsey and it's very frustrating that I found this out later and Wasted some years getting to this point, but It's like they always say better late than never right?

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It's it's good to try to take advantage of this if you can and so the the other thing about this is that so but but it changes the dynamic completely of how

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The sinking fund works because as a instead of using a sinking fund to save up money for something ahead of time

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You're paying premiums into a life insurance company to build up cash value And then when you need to pay for something you take a loan out so you take a look instead of taking it out of your savings account you take a loan out instead to pay for a car or to pay for a house or whatever or Repairs tires, whatever it is

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You're taking out out as a policy loan from the life insurance company Instead of a savings account that you're saving into because the concept is that this is sort of basically a it's a it's a

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Replacement or a different way of doing the same thing But it has its benefits because your money is still working for you because you never took it out of your policy

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It's still there and it's still growing and compounding interest Every single year that you pay the premiums and all of that stuff

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Okay, so yes Hold on what?

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Well the concept itself has been used by Very shrewd and wise

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Investors and wealthy individuals like the Rockefellers and like Disney when Disney I think first started they started it

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They use life insurance companies in order to fund their the companies You know the assets and all of those those things so this was known to wise investors and people who knew how money worked and But it became popularized by a gentleman by the name of Nelson Nash Nelson Nash he wrote a book called

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Becoming your own banker Highly recommend that you all read that book. I've shared it on the me week group.

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I'll post it again I posted a review of the book Because it is an amazing concept that literally solves all of the answers that it's it's an answer to all of the government problems has created with money and Investment and retirement.

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It's an amazing concept. So Nelson Nash popularized this concept through his book

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I think he published it in the late 70s or 80s or Maybe a little later

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Maybe in the late 80s somewhere around there. I forget when the first edition was it's like the fifth edition now, but He's the one who popularized this concept and It's not as well known it's gaining some traction because people are recognizing the benefits of it and the amazing value that The ability to preserve wealth through this method as opposed to all of the traditional methods that most financial planners and advisors recommend to you like Dave Ramsey and like You know these other guys like Suze Orman and all these other

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Gurus financial gurus that you know, they they sound like they know what they're talking about But in a lot of these cases, they don't they are not giving wise advice and they're actually misleading people

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In ways that will hurt them if they listen to them as opposed to doing something like this

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And so obviously I have to caveat that I am NOT a financial planner or advisor

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I'm not a CFP. I'm not a CPA. I'm not a legal Nothing.

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I'm just a person who understands basic math Right. I understand basic math and I've seen how one way works

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Which I used and I practice and now I'm seeing another way that works much better and that is way better to use if you use it properly and take advantage of the benefits that it provides for you as The tremendous asset that it is because it provides

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Protection from the government which is huge It protects you from the government because the banks are what the worst place to put your money in The word literally the worst place you could put your money in is in a bank now

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I'm not saying don't use banks at all because we're pretty much stuck using banks, but the the point the the point of you

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The point of using this is that it's not a bank It's a life insurance policy.

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So it's protected from the government's hands because it's not FDIC insured FDIC insured means the federal government controls the banks and Therefore you can lose everything in there and the banks themselves don't do a good job of handling the their

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Assets your money in a lot of cases Including a lot of the local banks here in El Paso But when you use

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When you when you minimize what you have in the bank To just the basic expenses that you know, you need to take care of And you instead take advantage of putting it in a life insurance policy like this an infinite banking concept

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It protects you from the government it protects you it protects you from lawsuits as well So if somebody sues you which is becoming very popular these days, right all this lawfare

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They they cannot sue you after your life insurance because life insurance is not an investment.

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It's not an ad. It's not a Considered an investment or an asset. It's considered a replacement for a loss it's it's insurance and So they can't sue you for life insurance over your life insurance policy, which is extremely powerful

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Okay, it all depends.

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It all depends. That's the most important thing is determining How much premium are you willing to pay?

41:20

Because how much P how much premium you pay? determines how Big and how fast the policy is going to grow and how big your death benefit will be and how big your cash value will

41:32

Be it all depends a lot of it depends on how much you put into it so Well Yeah, but you you should you need to be able to put enough into it so that you're not

41:44

So that you're able to get something out of it So there needs to be at least a certain amount that you can use so that you can use it effectively

41:53

Because otherwise, you know, it's not you because it's something that you have to pay for You're you're paying premiums

42:01

For it to use it And if you're not health -preferred you have to pay a charge if you're not if you have a disease or if you're

42:11

Something like if you if you have a bad health rating, you'll have to pay a premium another charge for it.

42:18

So That but you can still do it even if you're uninsurable or if you have a bad health rating

42:24

You can you can take a life insurance policy on on your spouse or on a on a nephew or a grand

42:33

Grand baby or whatever. So it's very flexible You can do a lot of different things like that.

42:39

Even if you yourself are not Insurable because if you get older it's going to become more expensive and it will be more difficult to get a life insurance policy out

42:48

Because life insurance is to replace a loss of life so But there's other ways you can do it with younger

42:58

Somebody that you have an insurable interest in it's what it's called so like a son sons or daughters or grand grandbabies

43:07

Nieces nephews that kind of thing. Yeah, so yes Mm -hmm.

43:37

Yes The whole life insurance is protected the only it depends on the state

43:44

I believe in Texas you're fully protected I think the only state that has a certain limit as to how much is protected as,

43:51

California and Go figure right? It's, California but But but the thing is that When it comes to so yeah, but even then a certain amount is protected up until a certain limit

44:11

I think but in pretty much all states it's protected Your your life insurance policy is completely protected

44:17

That's what makes it extremely powerful because you can lose your house. You can lose just about anything that is considered an asset

44:25

Unless of course you put it in a trust and but that itself you have to be careful with to do properly

44:32

Because if you don't design a trust properly, it's easy to poke legal holes around it and it'll won't do you any good

44:39

But yeah No, if you don't have to put it in a trust it already works like a trust it's already legally protected because the government has

44:52

Declared that it's not an it's not a an investment. So you can't you can't be sued over it it's considered a replacement of a loss and That's really what it's meant.

45:04

That's really what life insurance is for This is Taking advantage of those benefits so that you can use it for other things and that's partly why it's whole life

45:14

It's whole life insurance because you can use it while you're still alive It's not just to ensure your death. It's so that you can use it while you're still alive as well and take advantage of it as a banking sort of a banking your own bank because You control the money a lot more as if you were your own bank

45:32

Because you set the repayment plan on your own loans no other no other

45:39

Institution will give you that benefit No other benefit. No, no other institution the only way you can do that is set your own repayment terms is through a a

45:53

Life insurance whole life and whole life insurance policy designed in an infinite banking concept approach there's of course like with everything you have to be careful because How you design a life insurance policy has trade -offs.

46:09

So when you're when you're designing Something when you're adjusting a certain area of a life insurance policy, it's going to give you give something in one area

46:20

It's going to take from another So you have to really carefully understand how the policies work and how they're structured to work properly

46:28

So that they are designed to work as an infinite banking concept because There's different cons

46:37

There's different ideas and designs that people will try to sell that may actually hurt you in the long run

46:44

And you may lose money if you're not careful So that's why if you're gonna go into this

46:50

I highly recommend that you check out Somebody that is certified by the

46:55

Nelson Nash Institute That was the author who popularized the concept who just basically discovered it and made it known at a popular level through his books and So there is a

47:09

Nelson Nash Institute that provides these like certifications for life insurance agents

47:14

So that if you take their courses and their program That teach you how to properly design a life insurance policy to work effectively this way you can do so and we're going through a life in these life insurance agents called

47:33

It's James Nethery through there and located in Dallas and they're called banking with life.

47:38

And so I Really like those guys because they're very they're Christian and they're also they're very philosophical they get into economics.

47:47

They talk about Economic philosophy and they are so awesome because if you listen to their podcast, they were super anti COVID lockdowns so these guys are anti -government, they're not not in a anarchist way right, but they're anti overreach anti -government overreach and that's what

48:06

I really like about these guys because they have a lot in common with a lot of the convictions that we have as Believers who should try to be free from the control and the influence of anything.

48:17

That's not the Holy Spirit You know that passage that talks about you know, do not be under the influence of anything.

48:24

That's not the Holy Spirit It's not just talking about drugs and alcohol That's also talking about hush money government's

48:32

Benefits welfare all of that is a form of influence on you because there's always strings attached

48:40

Nothing is ever free Nothing is ever free, right? So there's influences that we have to be careful not to expose ourselves to Unnecessarily and That's why we want to become financially independent of Government institutions and welfare and these programs so that we have more control over our finances in our future

49:05

And we can trust God for his provision and trust God that he'll provide through his means as opposed to these unbiblical means of Socialist welfare and all this stuff.

49:17

That's basically a sanctioning a form of theft God doesn't bless theft right and These welfare programs are basically funded through theft.

49:26

They take money from the haves so that they can give it to the have -nots and That's not biblical so we need to be have a good grounding and understanding of these things because When you discover the power of this it makes everything pale in comparison

49:48

It's just amazing and I want to I want to talk about this some more because I know

49:54

There's this is very new. It's this is a very new concept to a lot of us. I only recently discovered it myself

50:01

You know our good friend Jeremy who was with us earlier he introduced me to it and I didn't realize

50:09

I Kind of ignored it. I was like, I don't see the point of this I don't really see the benefit of it until I realized it really hit me and I was like, oh my gosh

50:17

I can't believe I cannot believe I didn't do this sooner I wish I wish somebody had told me and said well,

50:23

I did tell you said no, but you didn't explain it to me This way and it wasn't until I read

50:29

Nelson Nash's book that I realized how powerful this was. I Really recommend reading his book becoming your own bankers.

50:35

Yes Nethery yes banking with life comm yes

50:43

It's a great resource. They have a podcast. They have a YouTube channel a bunch of articles and they have a tremendous amount of information that Really helps you too

50:54

And actually what I also like about them is that they require you to be informed if you get a life insurance policy through them

51:00

They require you to read Nelson Nash's book You're required to read it and you're required to take certain of their courses

51:08

That shows you how these things work. They want you to be well informed and understand how this works

51:13

And those are people that you want to work with that will educate you and that will empower you as opposed to Trying to sneak something past you and deceive you right and keep you in the dark

51:26

You want to work with people who will empower you and equip you and educate you? That's what

51:32

I really like about them as well. Yes nethery ne a

51:38

Th er why and I'll post it on the internet on the on the me we group his website and everything to But that's really

51:49

Really good stuff and I really encourage you all to take a look at those things See what works for you.

51:55

See if your situation can it can work for your situation? And if you can take advantage of it, like I said, it doesn't have to be through your own

52:04

Insuring yourself you can still insure other individuals that that you care for that you want to have an insurable interest in so it's still a powerful concept even for older folks that Can't really afford their own insurance

52:22

Because it's too Cost prohibitive. Yes, you can you you you can be the owner

52:44

You will be the you can make yourself the owner of the policy They are you would make them the beneficiary

52:51

So yes, you you will become the owner of it. It works a lot like a trust You're managing the policy and using it.

52:58

However you want But you're using them you're insuring them not you

53:04

But you're using their policy because you control it and then when you when you when that individual dies

53:12

You get the death benefit. Yeah, or the beneficiaries get the death benefit that you designate

53:17

It works the same way. It's just that instead of insuring yourself You're insuring somebody else, but you control the policy you make the payments on it.

53:25

It works the same way The that reminded me of something else and I went blank, but hopefully

53:34

I remember yes. Yes Yes.

53:45

Yes, this this is really more of a foundation It's actually more like your bank it empowers you to Have a bank your own bank so that you can finance the things that you want to buy

53:59

So if you want to buy precious metals, hey, you can take some money out buy some precious metals.

54:05

Hey right now, it's cheap Yes, it helps you Right Yes, so that's that's how this works.

54:16

It helps you to finance things that you already That you have to pay for that, you know, you're gonna pay for I want to pay for it but but the thing is this is where you have to Keep in mind because this is this is where I had a hard time seeing the benefit because when you're paying if when you take out money a

54:38

Policy loan you have to pay it back Right. So when when you have to pay it back In order to pay it back.

54:45

You may have to lower your premiums So that you can pay your your loan off right that that's what

54:51

I was having a hard time with this Okay. Well, why don't I just save up for it and I don't have to get a loan out But the point is is that you're paying your you pay as much money as you can into a life insurance policy

55:03

So that you're getting these benefits and later on 20 years down the road. You can use it as retirement income

55:09

You can use it to ensure your death and to give an inheritance to your children's children

55:14

Like the Bible says right and all of these different things that are tax -protected but you have to make sure that you're able to You're still gonna have to pay premiums so And that's the good thing of making sure you know

55:30

How much can you pay and how much what's the minimum that you have to set for yourself that you know?

55:36

You can pay when something else happens, right? So you need to be able to pay the minimum amount for the premium because when you take out a policy loan

55:46

That's what you're gonna have to you may have to make some adjustments and lower your premium payments So that you can pay off the loan and then okay now you're done paying off the loan and you can start paying more premiums back on the policy, so It it's in a way you're what you're doing is

56:14

In a way because what you're doing is you're borrowing money from the life insurance company

56:19

And they are using your death benefit as the collateral if you don't for whatever you don't pay back

56:25

Right, so your death benefit is collateralized So yes, the life insurance policy is collateralizing your death

56:34

It's like when you take out a loan from your home, right you take out a loan on your home If you default on the loan, what do they take?

56:42

They take your home here here it's similar because when you take out a policy loan

56:50

They collateralize your death benefit. So if you don't pay it off and you die

56:56

Your death benefit will pay whatever you didn't pay and then the rest of it will go to your beneficiaries

57:03

So and it's extremely powerful because these in life insurance companies have been around for over a hundred years

57:11

The good ones and they don't they don't mess around with your money like banks do banks are not required to have

57:19

Reserves Like to only 20 % now, so they're not required to have the money that you put in there

57:26

They can take most of it out and do whatever they want with it, but life insurance companies are required

57:32

Contractually legally obligated to provide you the cash value of your policy loan

57:38

They are required to provide it to you when you request it So whenever you ask for it the a policy loan

57:45

They are required to give it to you up to the cash value that you have saved up built up and there's no credit checks

57:52

There's none of that No, no, you don't have to give any reasons for it.

57:58

You fill out you fill out a form Exactly. You fill out a form you submit it

58:04

BAM. They gave you the check. So that's Extremely powerful

58:12

Exactly and It's you're not taking in out of your policy. So your policy is still growing

58:18

You're still gaining interest and money on your growing policy because you're still paying premiums on it

58:23

And you're not losing any of the money from there. You're not withdrawing it from your policy That's what makes it so powerful and the interest continues to compound and compound and compound year after year and the dividends

58:34

Eventually the policy will pay for itself So you won't even have to fund you that's what makes it powerful life insurance whole life insurance becomes cheaper to fund later on because yes, because right

58:52

Because when you get dividends back you can do different things with the dividends. You can get them back as a check or Through an infinite banking concept you have a paid -up addition writer in which you take the dividend and you

59:06

Reinvest it back into the policy by paying for premiums So it's going back into the policy.

59:13

You're reinvesting it and it's continuing to grow in value and death benefit cash value

59:21

Compounding interest and it keeps growing and growing and growing Yeah term

59:49

Yes Yeah, so so term term insurance is very different What we may have to take a look to see what you have, but term insurance is only for a term it's only for a period typically 20 years and Whatever whenever if you die within that term you get the death benefit of Whatever you were paying for it.

01:00:21

It's typically cheaper. It's much cheaper to buy term insurance depending on your age because Life insurance companies make the most money from term insurance because 1 % of people die within their term

01:00:34

So it's it doesn't get paid out a whole lot That's what it's good to have.

01:00:40

It's good to have term insurance It's still beneficial and even whole life insurance companies if you're going to do an infinite banking policy

01:00:47

You need to have a term, right? You need to have a term writer on it in order to prevent it from becoming a

01:00:55

MEC Which is called a modified endowment contract because if you over fund a policy beyond the limits that it's set

01:01:03

It'll become taxable and you don't want that to happen So that's why they put these term writers on them to prevent them from becoming a

01:01:11

MEC and taxable so The policy that will be structured for an infinite banking

01:01:18

Policy will typically have term writers in them That that will pay out as well they become part of the death benefit

01:01:26

Until they expire or they can be converted to whole life as well. So But yeah, very powerful tool.

01:01:35

It's really an amazing tool that can just If embracing this concept will

01:01:45

Increase our ability to become financially stable Independent wealthy even and to pass it on to our generation that our legacy and Really show them this wisdom of managing our finances in a way.

01:02:04

That is extremely powerful and that most Protects you from the government and from lawsuits

01:02:12

So it's so powerful But that's really I know this is

01:02:18

Definitely want to keep the discussion going on this because it's it's a lot of things that we want to get into and talk about the different benefits as how it works in retirement and And insurance and all those different things so and as a bank like we've been talking about so we'll keep this discussion going for next time as well, and I'll keep going breaking down the differences between Dave Ramsey and His really bad advice as opposed to using something more like this that's much better works much better for you

01:02:52

For for pretty much most people. Okay, so let's close out in in prayer

01:03:00

The gracious Lord we thank you father for the opportunity to gather today as your people again We ask that you bless our time together and our study help us

01:03:08

Lord to embrace The wisdom of others and to properly vet and examine it

01:03:15

Lord give us the discernment and the wisdom to make proper use of our finances Lord and to To to be wise in our handling of finances and to be in a way that most protects us from other

01:03:27

Influences Lord that are not sound that are not from you father. God like the government and other areas that That can can can harm us in the long run

01:03:37

Lord We ask that you would bless us and equip us with this knowledge and wisdom to help us to be diligent

01:03:43

Lord to seek these things out in our own lives and see what works best for us Lord and to really take hold of what you have given us and what you bless us with and the job and the means that you've given us

01:03:54

Lord to provide for ourselves and for our families and To make the most out of our dollar to stretch our dollar to the maximum so that we can still be effective and and exercise our our own

01:04:08

Finances and gifts to be a blessing to others as well. We thank you father and we ask these things in Jesus Almighty name.

01:04:15

Amen Thank you for listening to the sermons of thorn crown covenant

01:04:22

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01:04:28

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