E158: 3 Important Infinite Banking Perspectives Every Savvy Practitioner Must Adopt for Success

In this episode, Nate and Holly discuss the three most important perspectives to adopt in your life if you want to be confident and successful while you practice Infinite Banking. They also discuss on how banking works, how our money works and what is Infinite Banking doing with it.

Topics Discussed:

  • Three main keys that are necessary to be Confident and Successful While Practicing Infinite Banking.
  • How to Design the Policy
  • The little pockets and buckets in Life
  • Why do we all need to see Premiums and Loan Repayments as Building your Wealth
  • Infinite Banking is not a Quick Fix

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Podcast transcript for episode 158: Infinite Banking Perspectives Must Adopt

Nate: In this episode, we discuss the three most important perspectives to adopt in your life if you want to be confident and successful while you practice Infinite Banking. She’s Holly and she helps people find financial freedom.

Holly: He’s Nate, he makes sense out of money. This is Dollars and Nonsense. If you follow the herd, you will be slaughtered.

Nate: All right, Holly. It’s good to see you again. It’s good to be here on the show. Thank you all for tuning in. I mean, it’s a privilege to be able to do this. It’s a privilege. It’s a fun endeavor that we have, so we’re just so grateful for the people who do come in and listen to the show. We try to produce as much quality recordings as we possibly can with the best content that we can come up with. And so today, we are going to dive into the three keys I feel are necessary to be confident and successful while you practice Infinite Banking. And Holly, I think we could have named a whole bunch, obviously.

Holly: We could.

Nate: We could name a whole bunch, more than three and it would’ve been fine, but obviously, three is a cool number. People do podcasts about three all the time. So we say that’s a nice safe number to rock and roll with. But that being said, we’re going to focus on three keys. And I think fundamentally, Holly, before we even dive in, some people would maybe sit here and think to themselves, “Well, they’re going to talk about what company to go with.” Or “How to design the policy.” Or “How much to go to PUAs. Should we add term insurance to the policies?” And all of these practical things, but in reality, those are not the things that we see limiting people or causing them to not be very successful or confident with it. It’s not policy structure, policy company design, what to use it for, what not to use it for. Those things, while they are important, I think you and I would both agree that if your perspective doesn’t change when you get started, you will have a hard time with this.

Holly: Yeah. And I think, Nate, we often say it’s an ongoing process of retraining or rethinking everything you’ve been taught up to this. So really, the reality is the perspective and the way you think or process owning these policies and how they work. I mean, we always say it’s a process. This is the process you use. You have to have it in place first, but the reality is, is that you can’t just have the policy and then not change the way you think, because if you do, you constantly are referring back to old way of thinking. And we used to reference the backward bicycle video. You think it’s real simple to watch or ride a bike and then, if you guys haven’t seen it, the backward bicycle video, all they did was change one thing of riding a bike, that if you turned left, it actually goes right and vice versa. And actually, it helps you to rethink and reprogram your brain on how to actually process using these policies. So like Nate said, it’s not the design, it’s literally the way we think and process how banking works, how our money works and what we’re doing with it.

Nate: Yeah, you’re exactly right. And I mean, one of the things to think about, so as far as perspectives are concerned as we dive into this, the three main perspectives we could think of to practice IBC successfully, that was one thing I wanted to mention in here before we dive in actually Holly was, I guess we should maybe define what we even mean when we say practicing it successfully. So what does it mean to be successful and confident practicing IBC? And so, I wanted to maybe paint a picture of that just slightly before we dive into the three keys. What we mean by that is someone who’s practicing Infinite Banking successfully is someone who is mainly someone who every dollar that comes their way is being stewarded well. That’s like a huge idea of success for IBC, because most of the time, we have our life in little pockets and buckets.

We have our retirement bucket here, we have our short term savings, we have our long term savings, we have some debt. We just have all these different little buckets for where money’s supposed to go. And what we’re saying is with Infinite Banking, the whole point is to try to steward every dollar that comes your way very well and to have it grow and multiply for you on as many dollars as you possibly can and to have as many dollars as you possibly can doing more than just one job. So we’ve talked about this on the show many times. That would be a successful Infinite Banker, to having a large majority of the capital, the money they’re earning and saving, it needs to be working all the time. It needs to be multiplying and growing upon itself all the time. And then as it’s deployed, it can do value, not only in the policy, but elsewhere.

That would be someone who’s practicing it well, and you could contrast that with someone who’s not, which is mainly someone who owns a life insurance policy that they designed for Infinite Banking and they focus maybe on the practical side of things. So it’s designed great with a great company and it’s a good looking tool for sure, which of course, we would want it to be, but beside that, they’ve got this tool and they never use it. They never change their perspective. They still kind of go about life in a normal way and it’s almost a side thing. We would say while those people may be successful financially, they’re just not actually successful practicing Infinite Banking, because Infinite Banking is meant to multiply and grow the endeavors that you’re doing. Holly, I don’t know if you have anything else to add to that, but that would be what I would say is a successful practitioner of Infinite Banking.

Holly: I would just say that successful is like you have the Easter egg that’s hidden, the little hidden gem and you’re actually… You’ve opened it up and used it versus you know it’s there, but you’ve never done anything with it. It’s just that mindset. And so, I think that’s really important is changing your mindset, like we’re talking about today. It’s like having the present and you never unwrap it to see what’s inside, you just leave it all pretty and wrapped and never touch it.

Nate: Yeah. And so, I think we could dive in so many different areas, but as far as the perspective is concerned, the reason why I felt so passionate about the perspective needing to change to be successful is because I really believe that Infinite Banking itself is not the policy you open. Infinite Banking itself is less about how the policy is designed, who the insurance company is and what you should and shouldn’t use it for. Those things, while they are important, I’m just saying it actually doesn’t matter if those pieces are understood or in play if you don’t get these three perspectives right anyway. You will not be as successful as an Infinite Banker. Nelson Nash, he’s the guy who thought of the concept, right? He was an incredible Infinite Banker, built a ton of wealth with it, did a lot of different things with it.

And all I’m trying to say is he owned policies that were not designed for Infinite Banking at the time. There was no such thing as a Paid-Up Additions Rider in the ’60s and ’70s and probably even into the 80s. And so, he was using just the basic tools to practice it and he did extraordinarily well. In fact, I would assume he’s doing a lot better than 90% of the people who call themselves, “Yeah, I’m doing Infinite Banking.” And they’ve got this awesome tool, with stuff with Paid-Up Addition Rider premiums and all sorts of things, but yet, their perspectives are so wrong that Nelson could have blown past them with his archaic 1960s, ’70s, and ’80s policies that would’ve been the bulk of his portfolio of policies.

Holly: Well, and I would agree with that, Nate, because even my grandmother that started a policy that didn’t have that, right? 1979, she started this policy. She was still using it in her 90s when she graduated from this earth, but it wasn’t the perfect design, it was just a policy and that’s all it was. It didn’t have any bells and whistles on it. So it is how you practice it and how you use it that makes it what it is, not the policy itself.

Nate: Amen to that. So I guess now, we’ve whetted appetite. Let’s go ahead and dive in. The first key, as far as a perspective you should adopt if you want to be successful and confident while you practice IBC, the first key is we all need to see premiums and loan repayments as building your wealth, as opposed to taking away from it. So we need to see that premiums and loan repayments build wealth, they do not remove wealth. They do not reduce wealth. And Holly, if I wanted to dive in on this one just briefly, I think that the majority of people practicing this concept would give lip service to this. They would say they believe this to be true.

Holly: I would agree.

Nate: Yeah. So they say it. They say yes. I understand mentally that as I’m paying premiums or if I’m making loan repayments to the policy, it’s actually working in my favor. What I find to be the issue, perspective wise, while they may believe it internally by how they’re living their life, the true colors are being shown. And what I mean by that is they are still afraid to put money into policies. So there’s only two ways to put money into policies. It’s premiums and loan repayments. That’s the only two ways that money can enter a policy. Those are the only two forms. And so, while they would say, “Nate, I agree with you. This sounds real simple.” Their perspective is still, “I need to be cautious. I get a little concerned when I’m sending money to policies. I don’t want my premiums to get too big. I don’t want to put back too much in loan repayments. I don’t want to send too much money there because what if I need it?”

And what I’m saying is they’re bringing in this old perspective that, “I need money here in my bank account. That’s where I need my money. That’s where my safety is. And so, I need to treat my policy with a little bit of distance because I need to make sure that I’m okay.” And it’s still what we would call bank account conventional banking perspective. They may give lip service to the premiums and loan repayments build your wealth. They don’t reduce it, but the way they act makes us assume they feel like if I send money to my policies, I might hurt myself in some way or something of that sort, which I think is, once again, is based on a bad perspective.

Holly: And Nate, I think that what goes along with that too is they are still thinking of their premium and loan repayments exactly as a payment. They’re not thinking about it as a deposit that they’re actually depositing something into their bank account. Yes, a loan repayment goes to the insurance company, but you are an owner of the insurance company. So that’s why we say that, but I would agree with you 100%. I can say I was guilty of this way back in the beginning of, “Okay, I took the loan out. Okay, I’m going to keep paying my premiums, but oh, that loan repayment, I don’t have to pay it. It’s not a big deal.” Instead of changing my mindset that that money that comes in every week or every couple weeks or once a month, I actually first go, “Okay.” I mean, I do my type, but then what I go and do is, “Where am I putting this money that’s coming in and which policy is it going into?”

Not just as a premium, but as loan repayments and having loans and taking those and actually setting up a systemized or systematic approach to repaying it. And I think most of us lose that perspective because we don’t ever change that thought process of, “Oh, it’s not a payment.” It really is a deposit, whether it’s a loan repayment or not, but irregardless, I mean, if we borrowed from a bank, we’d have to repay them. You borrowed from yourself, repay yourself. You’re worthy of that and your dollar should be going back to you, not to somebody else.

Nate: Yeah. Yeah. I mean, I think it’s… What I’ve said, I’ve said it many times, we all should be excited to put money into policies. That is the perspective to come into this. That’s the sign of someone who’s confident and successful living life as an IBC practitioner. I get excited every time a premium comes due and it’s not me just saying that, I’m just saying I love putting money into policies. That is not a joke. It’s not a markety thing. Most of my policy premiums come due near the end of the year. That’s how it’s been built up. I think it’s because I determine whether or not to open a new policy based on how the year has gone and how much capital I’ve accumulated. So if I’ve had a good year and that means I’ve had a little bit of extra money available, then I say, “Well, now it’s time to start a new policy.”

So it just happens to be November, December, January, that timeframe is probably 80% of my premiums, but it’s also my favorite time of the year. The holidays are there and I’m paying premiums. It’s a great season of life and I look forward to it. Right now, we’re shooting this in October and I’ve got policy premiums coming due in December. I added up the policy premiums I’m going to pay and then, I compared that to the cash value growth that’s going to occur. And I’m going to pay premiums… I’m not going to say the number, but it’s a large amount, but I’m going to have about 30 to $40,000 of cash value growth above the premium. So I’m sitting here like, “I can’t wait.” I’ve got the money accumulating, it’s getting ready for its joyous marriage to the policy and I’m excited to pay it. Can’t wait for it to go in.

I wish I could put it in now. I can’t wait to go make $30,000 tax free in the next couple of months. I’m super excited. And the same thing goes for loan repayments. If I’d taken a loan out to go do something, I’m happy. I’m excited to throw money back in as loan repayment. Whether it’s going to be on a systematic basis or whether I’m just sending a lump sum contribution back as loan repayment. It’s my bank. I’m excited to keep as little money as possible in the bank and as much going into policies. I’m excited to go pull money out of policies to make investments that produce cash flows to roll money back in. This is the proper perspective. I didn’t invent this. I’m just merely saying this is what people should have. I think everyone listening to this show-

Holly: Yeah.

Nate: … understands what I’m saying. And if they’re already doing Infinite Banking and they believe what I’m saying is true, but I’m just… I get worried because we meet with clients all the time and we talk to them and I feel knowledge does not always mean faith. And it’s kind of like biblically, James actually writes, “Hey, you believe in God? Great. The demons believe in God and they tremble because of that.” And that was his way of saying you may believe in that there is one God, you may believe God exists, but it doesn’t do anything to you unless it’s mixed with faith, which faith always trickles into action. So I’m not saying have faith in IBC, but I am merely saying that just because you understand the words I’m saying and would say, “I believe that Nate is right.” Does not automatically mean it’s going to filter into your lifestyle. So it’s a perspective that has to change, that premiums and loan repayments build wealth, they do not reduce it. Never be afraid or be concerned or worried about having money sent to a policy. 99% of the time, I would say that there probably are some extenuating circumstances where something may happen, but I’m just saying 99% of the time, it should be a joyous day, anytime money gets to be sent back to policies.

Holly: Well, and I think there was a really key point there, Nate, that you said, faith requires action. So you have to take action, which is making those premium payments and loan repayments. We often view that as, “Oh, I have faith in the system, IBC, but we’re not actually taking action to do it.” So you believe kind of what you’re doing, but you’re not actually walking in that and taking the action of following those steps. It does diminish your wealth if you don’t follow those steps. Whether you want to believe it or not, your wealth will still grow but not nearly as well if you actually just follow the steps and process through.

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Nate: I’m just interested in this correlation we’ve brought up between faith and IBC in some ways and how I think that the ideas are pretty correlated. In other words, in a similar way, you can say, “Oh yeah, I have faith in God to provide for me and my family. I trust him and his plan for my life. I trust that he is a provider.” But then you live your life always concerned and worried and tight with money and always afraid that God actually won’t provide. And that’s what James was trying to say. Faith without works is dead. He’s saying, “You can say whatever you want, but your faith will actually be revealed in your actions.” And certainly I believe that and it applies to IBC. IBC is a concept and you can understand the concept. You can believe that it’s a good concept and that you can still practice it really terribly, because there’s a perspective in you.

And this, number one, the first key is probably the number one, which is I’m still worried about the money that’s going over to the policy. And if you can’t get over the perspective, it doesn’t matter how good the policy that you purchase was designed. Doesn’t matter who the company was, doesn’t matter if you understand when and how to use it and all of these cool things to talk about. It doesn’t matter, because your perspective is wrong. You will never put enough in. You will always short change yourself. You’ll leave a lot of growth on the table because you’re not really stewarding the money very well. Anything else on this one, Holly? Are we kind of beating a dead horse maybe a little bit?

Holly: Nope. Let’s move to number two.

Nate: Okay, number two. Nelson talks about number two as well. In his book, he mentioned this plenty of times. We’ve talked about it a lot. So the second perspective that you need to adopt to be confident and successful with IBC is you have to think long range. And I know that sounds real simple, you have to think long range though. Most of us go into it knowing this, that Infinite Banking is not a quick fix. It’s not a get rich quick scheme. We know this. By the way, Holly, I’ll mention one more time and then, I’ll stop mentioning it, that everything we’re saying is what people believe, they just don’t put it into practice. Almost everybody we talk to would say they understand this and believe it, but by their actions, by their concerns, by their worries, by their anxieties, by how they communicate to us, they’re showing that their belief is not filtered into actually changing their mindset and perspectives.

So with that being said, I think most people go into this thinking long range, but yet, they actually expect somehow, someway to be making a lot of money really fast, even though they know that it’s certainly not that way. So every time we endeavor to produce Infinite Banking, we have to come in with a couple perspectives and understandings. Number one, that a policy and the system as a whole gets more efficient every single year that it’s in force. So the longer the policy’s in force, the more profitable you become. And secondly, also understand that this system of banking is going to exist in one form or another till the day you die. You might as well practice it in a way that profits you until the day that you die. So a 90 year old still has a bank account, still has money flowing, still has expenses. And what we’re saying is banking will exist until the day you die. You might as well be profitable doing it until the day you die. So you have to come in with a long term, lifetime perspective on wealth building in order for Infinite Banking to start to click more and more

Holly: And we say this a lot, Nate, that we say it’s not a 100 yard dash, it’s like a marathon. Life is a marathon. It’s a matter of starting and continuing that process through the entire race. Your life is the race. It’s not the 100 yard dash to see how quick you can get there. It is that long term, day in, day out. It’s constantly growing, constantly processing. So you constantly have to keep moving forward with it and changing. That’s where the perspective comes in. Every day, choosing like, “Okay, yeah. I’m going to pay my premiums today.” And being excited about that, whether you’re 30, 40, 50, 90. I mean, I think my grandmother was more happy later on in her life with her policy she started 20, 30 years before than the first five, 10 years of the policy. I mean, my dad would say that.

She moaned and complained and then at the end, it was a way different perspective that she had because of the long term, the longevity of it, and that it still provided even in the end of life, it actually provided better in the end of life than it did in the beginning. So the reality is that we cannot look at this, like Nate said, it’s not a money market, multilevel marketing, it’s not any of that. It’s not a get rich scheme. There are rules, but you have to view it as your life is a lifetime of a race and it’s good in the beginning, but it’s even better in the end and it’s still moving forward. And so, if we don’t have a long term perspective on it won’t do what you had hoped it would do because all we can see is the short perspective or shortsightedness of, “Oh, I couldn’t borrow out 100% of my money, Nate, in year one or two. So it’s a bad product.” I mean, I’ve actually heard that.

Nate: Yeah, exactly right. And so, I think there’s kind of this plague coming into the IBC community that everything should be focused on some sort of short term horizon and short term goal when that was never what it was intended to be. Everybody would also know, and we all understand, whole life insurance policies are meant to be in force the day that you die. And we know that keeping them in force until the day you die is how you can get the absolute highest amount of value from the policies. I mean, with that being said, we give lip service to it, but we need to keep it at the forefront to be confident that what we’re doing makes sense and is true. To understand, right now, my whole life death benefits are, I don’t know, probably like eight million or something like that. And what I was bringing that up to say is my cash values are certainly a lot less than that, but there’s this thing that you can’t lose track of. You can’t lose focus of the fact that what you’re creating, there’s going to be a gigantic wealth transfer sometime in the future and be excited by what you have built.

And so, it’s a long range thing. It’s meant to be focused on… It’s meant to be seen as a lifetime endeavor, but I bring that up to say some people might be afraid of that. “Wow, I got a lifetime endeavor?” I’m like, “Well, yeah. Financial success is always a lifetime endeavor.” Nobody wants to be financially successful until they’re age 75 and then just deteriorate and then die broke. Obviously, financial success is always a lifetime endeavor, so don’t get caught up in how things look at the beginning of the financial journey. Always understand that there’s really two main goals for most of us financially.

We want to build up enough wealth, enough capital to where we have our needs met. We’re receiving passive income when we choose to or when we can no longer work, I don’t really like the idea of retire, that we’re not financially dependent on anyone else, certainly not the government. So that would be what we’re shooting for is to become wealthy or be more than enough. And then the second goal would be to leave as much as possible to bless the next generation that comes behind us, whether that’s your children, your grandchildren, your great-grandchildren, or the different ministries or non-profits that you would like to bless. That is the vision you should have going into it. It’s a lifelong endeavor and get excited about it and don’t lose track that the moment that you start a policy, you have immediately guaranteed a very large wealth transfer near the end of your life, guaranteed from day one. There’s not everything can say that. So be excited about it. Don’t lose sight of it, that that’s down the pipe.

Holly: And I think when you have that long range perspective, you start thinking of, “How does it bless my family? How does it bless ministries not just today, but in the future?” And that is part of that process of just understanding that it’s not for just today, it’s also for the future and what you want to leave and the type of legacy you want to leave.

Nate: Yeah. So as I’m going to keep reiterating, do not give lip service to the fact that you know these things. Nothing, by the way Holly, that we’re saying here is brand new. I’m sure most of the people listening to this have heard people talk about this or already understand it. I’m just saying, don’t let your understanding remain in your head and not filter down into your heart and actions the way it needs to in order to be confident and successful. We have so many clients that have been with us for so long that they should be light years ahead of where they are and they would all say they know these things, but they do not build their life around the knowledge. So still, their perspectives are wrong, which does lead us to the last one, Holly, the last perspective we wanted to share. And so the third perspective is you have to use it or you’ll lose it, as Nelson Nash would say in his book, Use it or Lose it. I don’t want to get too uptight with this because I don’t want people to think that there’s some sort of magic in using policies, holly. Like there’s some sort of…

Holly: There’s not.

Nate: Yeah. If I take a policy loan and I’m using the system, there’s some sort of magic that happens and naturally where it’s all about… There’s nothing magic. It all makes sense, but what we are trying to say in this perspective is that whenever you start pricing IBC, if you never use it, if you always just set it aside and leave it aside, of course, you know that you won’t be able to achieve the things that you are hoping to achieve per se, just by owning a life insurance policy. So what I find, there is something that changes when people use policies and they put this into practice.

And I’m even to the point now where it’s like, even if they don’t even need to use it, I’m almost to the point now where maybe you should, even…

Holly: Yeah.

Nate: I’m getting less uptight about making sure that taking policy to do something is a perfect thing to do with it, based on their financial situation. It’s more like I have seen time and time again where there are people who practice IBC and who just kind of let it sit on the sidelines. They never adopt the right perspectives and it’s always a beginner level, rookie concerned environment where they just never really succeed with it because they felt like they’ve never had to use it. Maybe that’s true. So my only encouragement here to the people listening would be when you have a policy, you don’t have to use it right away, but in the first few years, you should do something with it because you need to start getting into the practice of Infinite Banking being a banking concept. And with banks, money has to go in and go out. It’s not meant to just store capital per se. It does a good job with that, Holly. I’m just saying that’s not the design, the intent should be to put it to work.

Holly: Well, and I think with that, Nate, even like you said, whatever it’s for, it’s not like you have to wait for some big purchase. And I love the story, our first policy loan was for $600.

Nate: Mm-hmm.

Holly: Right? But it was to understand how to use it not just for me, but my husband. It was our first policy. What do we do this for? How do we use it? And then watching as we paid that back over time and how the policy grew and then doing it again. But we didn’t take out a massive loan. Some people are like, it matters exactly what you’re using it for. I would encourage you to use it to try it. Right? Like, “Okay, I have this policy, now what do I do with it?” We have clients that have never used their policies.

Nate: Oh yeah.

Holly: Ever. And I would tell you it’s just sitting there accumulating money. And if they actually used it, I think they would have so much more wealth, but the reality is it’s kind of like the present that they never opened, right? They just, “Okay, it’s there and I’m just storing money.” And their perspective hasn’t changed that it’s their money to use now and in the future. It can benefit them. I mean, I had a client the other day where they’re actually, “Oh, we’re just going to go pay cash for a car.” And they had the money in their policy and I was like, “Well, why don’t you use the policy?” And literally, “Oh, we never even thought of using that.”

Nate: What are you here for?

Holly: That’s the use it or lose it, right? They’re not using it for anything else anyway, so you might as well versus, “Oh, it’s the money in our bank account.” And then the next one was, “Can we just pay it back now?”

Nate: Yeah. Well, and that goes back to likely also being afraid to pay premiums. All of these things when they’re not in alignment, these three perspectives, things get out of whack. So you run into people who never use it because they haven’t put enough premiums in, so they’ve never had to use it. So they never use it because they don’t have to, they have enough money to do everything else on the side. There’s never even a thought, but what I’m saying is that they don’t use it because of key number one, they failed key number one, which then causes them to fail key number three, which then essentially leaves them in a situation where they never even know what they’re missing out on. In other words, it’s a domino effect that when your perspective starts to get off, the whole system starts to fall apart, because people will automatically assume things about the system that are not true.

So I don’t even know if I’m making sense fully on that, but what they should have done was taken a loan out to buy a car. Let’s say it’s $50,000. They take the loan out to buy the car, and then they take the 50,000 of cash that they had sitting there that they could have also bought the car with and they need to use that to pay new premiums on a new policy. That would be IBC.

Holly: Exactly.

Nate: That’s what they should do, but because perspectives are all wonky, they will not do it. So this is what we’re saying. It doesn’t actually matter how well the policy was designed. It doesn’t matter how much term insurance is blended in or PUAs or the company or whatever it is, all of that doesn’t matter if you won’t actually practice the concept in a way that produces the most wealth. People could blow past you with a crappy policy from a crappy company with no PUAs and they would still produce more wealth than you.

I’m not saying that all the other things aren’t important, but I’m saying that these are so important that you run into people, you’re like their perspective’s way off. And if you never fix the perspective, your infinite banking system will certainly be mismanaged and it’s not going to hurt you, but it hurts you in the realm that we would call opportunity costs. In other words, you could have made so much more money over your lifetime if you would have just adopted these perspectives. You may already have a policy, could be designed well, could be practically very… A good solution, but you’re afraid to pay premiums or it makes you nervous about it, or you have some sort of weird awkward relationship with them.

The same thing goes with loan repayments. You don’t really like sending money out of your bank account. You’ve forgotten the long range mentality of this idea. You lose track of what you’re building for your generation, so you’re not as excited as you once were. And then, all of this would lead you to where you never really use it. You don’t like making loan repayments, so you certainly don’t want to take loans because then you got to make loan repayments. Since you’re afraid of premiums, you’re not putting enough in, so you never really find a time to use it and so you’re not using it, so we’re back to square one. And we have this cycle of where it’s just not doing what we hoped it would do.

Holly: And they all go into line, Nate, even use it or lose it. The reality is if you don’t even think about using it, part of it goes back to paying premiums and repayment. Just understanding that that doesn’t diminish your wealth by taking a loan out. The reason they wanted to pay it back right away was because one of the spouses doesn’t like the word to have a loan or deb.t That that’s a negative connotation, instead of changing the perspective and just saying, “Well…” And I asked a simple question, but in our mind we have to change it this way, “Is a loan to a bank an asset or liability?” It’s an asset. So in the same way, the loan to them is an asset. It’s not a liability, but it was a matter of changing that perspective of, “Oh, if we do it and we have this loan, we are diminishing our wealth. We don’t have as much as we would’ve had.” And so literally, each one of them goes hand in hand in that process.

Nate: Yeah, exactly right. Exactly right. We’ve probably gone over our time limit today, so I guess, Holly, we can wrap up, but I mean, if we left you with anything, Nelson Nash described that most people don’t get this because of the way that they think, the way that their perspective is messed up. And so, a lot of the people who don’t even want to practice it have a weird, convoluted perspective that’s oftentimes not really based fully on reality, but that’s okay. I’m more concerned about the people who are already in it who are not fulfilling what they’re supposed to be fulfilling in it, because perspectives are off base and the most common ones have some sort of weird perspective on premiums and loan repayments. They may believe that they’re actually good for you, but the way they live their life means that they’re trying to avoid them like the plague.

That is a problem that the wrong perspective, whenever you’re trying to build a bank that’s as profitable as it can be. A lot of times they get stuck forgetting the long term arrangement and the benefits long term for both them and the next generations, how policies get better and better every single year and how policies are meant to die with. And that’s how the most value is produced from them. So we can never forget that. When we start getting shortsighted, we start doing weird things. We do weird things with the policy. We design them weird ways. There’s a lot of weird things start to occur when we start making IBC fit short term time horizons. And then lastly, all of these kind of domino effect leading into the third one, which is people don’t ever use it. They don’t understand why they would and a lot of times, this is the result of faulty perspectives, even going in front of that. So anyway, we hope that this was helpful. We hope that you appreciate the three perspectives that you can adopt to help be more confident and more successful while you practice IBC. Any last words, Holly?

Holly: Nope. No.

Nate: All right. Let’s close it down. Thank you so much for joining us. If you guys would leave a review wherever you consume the podcast or rate it wherever you consume it, that is really the best way to get the word out. We would appreciate it more than words can express, but this has been Dollars and Nonsense. If you follow the herd, you will be slaughtered.

Holly: For free transcripts and resources, please visit livingwealth.com/e158.

Announcer: Listeners, one last thing before you go, start your journey towards financial security and wealth today. Visit livingwealth.com/beatinflation. You’ll gain instant free access to the beginner’s course Ray, Nate and Holly made just for you. Again, that’s livingwealth.com/beatinflation.