How The Elite Create Generational Wealth Experts Explain

 Federal Reserve is not Federal or Reserve, it's a private bank. Who owns it? Not really sure, but they're the old for wealthy. You have absolutely no upside when you have a ton of money for people that know you have money, but you have tons of upside when you have no money to make it seem like you have money. The idea to own nothing and control everything. It's an incredible concept, but in practice it's actually very difficult to do from a planning perspective. I think that's the really, really cool part about life insurance is it gives you options. There's so many tools out there that kind of puts you in a pigeonhole in one box. You have to use it for one specific thing. The life insurance gives you the options to do different things depending on life circumstances and that exact moment in time. We're going to be reviewing the most viral video that we have at Better Well, if it's not on our channel, it's by our good friend Jake Tran. Almost a million views on a video that we did together. We're going to be reviewing that. I got Dominic Rufrin in the house. I got Alden Armstrong in the house. I'm very excited about this. I'm excited to review this video. I'm excited that we're all doing a video together. I believe this is the first video that we've gone that we've all done together, which is probably very problematic to just say that out loud like why haven't we done more videos together. I think it's safe to say we all we're all growing. We all got our own unique spaces. You do content with Alden. I do content with Alden. I do content with you. As everybody knows, it's probably been less and less of me coming on the Better Well show. That's just because we're growing. We're doing awesome things. It's just fun to be nostalgic and get after here today. I almost even thought about making a joke because I've done it to you about seven to ten times of butchering my last name since we've inception together. It's been almost five years or over. And it's still okay to get it completely right, which is always hilarious. How did I get it wrong? You said Dominic Rufrin and it's Dominic Rufrin. You know, it's very subtle, but you know, it's like Williams versus Williams, I guess. Right. Yeah. Very much. I'm really. I'm excited. Over here. I got last name. Armstrong. So it's like. Yeah. I can do that in my sleep. With all joking aside, I think this is a very special time to just review a video that really put us on the map in some cases. I remember I was going to an event when this thing went live and to see all the people that reached out to us. I know that there's been some like legitimate wealthy families that watched this video that reached out to us. And I know there's been some really cool conversations and some things that have happened from this. And so I cringe every time that I got to like watch a video that I'm speaking, like reacting to a video that I'm in. It's not something that like I'm super stoked about. I think it would be cool to a number one. We'll have the full unedited video that we're reacting to down below. But just to go through it because there are points that would be that we could laugh about at. But there's also points that would be like really, really good. Say like, hey, we should flesh that out more all then that's why you're here because you really dove headfirst into strategies like this. You're talking to most of the ultra wealthy people that are coming in with these strategies. And so we thought we would add you. And then you know, Dom and I have a lot of videos talking about the Rockefellers and all. And this this definitely talks about generational wealth and the Rockefeller family. And so I thought we have to have DOM's face on here. It would be it would be disrespectful even though I can't say your last name right to not have you on here. So anything that you guys want to say before we start, we start playing this. And if anything pops up while we're playing the video, please stop me. And then I'll stop after every time that I speak in this video so that we can give two cents. I think the only thing I would say is that there's a reason that we haven't done content to three of us together is I can take each of you in small doses. All of us on the same call is making it a little crazy. But I'm excited to see what happens. Yeah, I just I can't wait to see the comments on this video. Here we go. So you're a billionaire and you've run into a problem. You've amassed all this wealth, all this power, but you're getting old. And your kids, your nieces, your nephews, they're all lining up to kiss your butt to make sure they get listed on the will. But your family doesn't know anything about money. They didn't have to grind it out like you did. Everything was given to them. So if you leave any money to them, they are gonna squander it. Now seriously, a staggering 70% of wealthy families lose their wealth by the next generation, with 90% losing it by the generation after that. Two generations. That is all it takes for all your wealth, all your hard work, the empire you've built to go circling down the drain. You cannot let that happen. But lucky for you, ultra wealthy donnesties have already figured out how to solve this problem. And at the center of it all are the Rockefellers. Who after 80 years since his death, seven generations later, John D Rockefeller's family is still standing as one of the wealthiest families on earth. How wealthy? Well, no one knows because they're just that good at hiding it. And in this video, we are gonna expose it all. Trusts, family foundations, family offices, and a super clever tactic that not many people know about. Stay dangerous. This is how the rich get richer. And this is definitely not financial advice. I like how he does the disclaimer way better than art, the how we do the disclaimer. So this is not financial advice. Lucky, winky face. Yeah, I think a good thing that would make sense to just throw in here and add is a lot of the stuff that we're about to talk and discuss from a strategic perspective. It's obviously is great. But the thing that really makes a lot of this take comes down to mindset. And that's the one thing that I've actually really learned from taking the deep dive into the Rockefeller and actually talking to olden. Is that you can have some of the best strategies in the world. But if you don't have the right mindset around how you can bring your family together, how you can teach them values, how you can create a system around this stuff. They're not if it really matters at the end of the day. So I just thought it would be a good place to start knowing that we're about to talk about some of the strategies, but really the mindset above all is really a good place to start with it. Love it. Here's what you have to understand about the ultra-wolfie versus the masses. The masses want to get rich so they can own the Lambo. So they can own the yacht, the mansion, the private jets. They want to show it off. They want to flaunt their wealth. But owning stuff is for the peasants. When you legally own something, leeches want to see you every chance they get. These want to steal from you. The government wants to tax you into oblivion. And vicious prosecutors want to take you down. And the clubs want to pillage you. That is why the ultra-wolfie do not want to own stuff. Because owning stuff sucks. Instead what you want to do is have control over your assets as if you owned it without actually owning it. You want to live in the penthouse on Billionaire's Row without it being tied to your name. You want to sell your mega yacht without it being under your name. Just ask the Russian oligarchs if they agree. The key is control, not ownership. You want to be able to do everything you can with the thing as if you owned it without having your name on the papers. Because when you have ownership, taxes follow you and liability follows you. And also sometimes fame follows you. And so those three things could be problematic. And the people that are really wealthy want control. But they don't necessarily want the liability that comes with ownership. And they don't necessarily want the taxation that files title and ownership. And so many of the wealthiest people in the world, we don't even know their names because they have a ton of control. But they're not names are not personally on a lot of assets and wealth. And that's really the name of the game. This is my friend Caleb by the way with better wealth. And he's dedicated his life to learning how the ultra-wolfie do things to bring down that knowledge that every day people like us. Do you think there's richer people out there than the people that we see on the Forbes list like Basil's muscles? Yeah, 100%. There's people that are way, way wealthier than the people on the Forbes list because of entities and structures and other things that they control that they're not given credit for. And they do it intentionally. But how do you control something without owning it? Simple. The elite have created certain entities. Well, I think just off the cuff here, the idea to own nothing and control everything. It's an incredible concept. But in practice, it's actually very difficult to do from a planning perspective. And so this is one of the reasons why ultra high net worth individuals want to do it. They like the anonymity. They like the ability to effectively live their lives without scrutiny. A book that if anybody wants to dive into this is an amazing book, a creature from Jekyll Island, to make a long story short, creating the banking system. It's actually the third banking system we've had in the United States, the federal reserve is not federal or reserve. It's a private bank. Who owns it? Not really sure. But they're the ultra-wealthy. And it's how things got structured to allow them to have the anonymity. Now, there's some aspect that has changed recently and actually toward the end of this year, the Corporation Transparency Act goes into effectively full effect. So you have to start filing who you are, what entities you actually own and who the ultimate benefit she areas of your entities. So I'm not an attorney, but there's going to be some changes in how about reporting happens long term. It'll be really, really interesting to see what additional information we may be able to find through public record of who actually does own that massive yacht over there. It would be interesting. Yeah, I have a funny feeling though. There's going to be some type of loophole for the ultra-altra well to not be seen. But the mental framework in itself is pretty powerful. You get to a place where you want to be known. You want to be flashy. But then you get to a certain place in status and wealth that you're like, actually, I would rather not be known. And that's an interesting aspect because a lot of the people that we spend time with at Masterminds.dom, and they're maybe a little bit more flashy. And they're in that place. And so it's interesting when you study wealthy people, you can take the habits and some of the things that they're doing well and try to apply it before you're worth a billion bucks. And so that was one of the takeaways that I've gotten in just this whole journey of like, how can I model that today before I'm a billionaire so that if and when I become a billionaire, it's not one of those things that you have to retrain the way that you think. Yeah, you have absolutely no upside when you have a ton of money to see for people that know you have money. But you have tons of upside. You actually only have downside, actually. But you have tons of upside when you have no money to make it seem like you have money. It's just kind of like that it's the perceived and personas that way. But the last thing that I'll say before we could play again is I think it's important for the people watching this is contextually, you know, when we originally did this video, I think the whole point was that how do the ultra wealthy operate to kind of let the normal person or middle class person be able to do some of these concepts in a certain way to where it could benefit you. And I think that as we go to this, some of these concepts really do hit the ultra wealthy like some of these concepts, I think for normal people, just doesn't make sense. And I think that's something that is important as we go down this rabbit hole rabbit trail is that not all these concepts will probably be for everybody watching this. And it's important to remember that because we've had lots of conversations with a lot of people where they have us on the phone like, I want that Rockefeller method and all the nest to come in and kind of talk them off the cliff and like, hey, like that concept is actually for someone that with a butt load of money. But here's maybe a smaller version on how we can essentially accomplish this to start you off and especially from a mental perspective, getting you right where you need to be to kind of start building and creating wealth. Because you do have to own some things at the beginning to eventually get to a place where you can know nothing. Yeah, we're even going to talk about life insurance at the end. And life insurance is great, but there's some people that can't even take advantage of permanent life insurance or that shouldn't be the focus of what they should focus on. So that's love love love that point. Hey, it's Caleb Williams here. I'm just interrupting this video quickly to invite you to check out our NS at vault. You may have been there. We've actually re revamping it. And if you are somebody that wants to learn more about his life insurance right fit for me. Does this and that's it makes sense like does this actually help me be more efficient. We've put together a 10 minute documentary style video. And I can test a really, really good job giving the history why the end asset different setups and designs that we use and that we have an end asset fault that gives like case studies calculators handbooks and so much more. We are here to serve you whether it's a conversation, whether it's education or the video. So make sure to go check out and asset calm slash vault learn. They've created certain tools that give you all the control you want while technically on paper you're as broke as the bigger on the streets and the first tool that families like the rock and fellas use is called a trust. In 1934 John D. Rockefeller Jr. established trust for his daughter in five sons that consisted of oil company stocks and real estate holdings. These trust still hold the bulk of the fortune. Another set of trust for set up in 1952 for his grandchildren the fourth generation of the family. But why? Why trust? Think of a trust like a corporation before your family. You put your money and real estate in businesses into this trust and once the money is in the trust you can invest that money however you want. You get to set the rules for what happens to your money when you die. But most importantly just like a corporation once you put money in the trust you do not own it anymore. The trust owns that money. You win the trust or completely separate legal entities. You give up all the ownership of that money but none of the control. So on paper maybe you're worth a measly $10 million but in reality you might be worth over $100 billion with all that money safely stashed in hundreds of different trusts. And because these trust don't directly belong to you your money is protected. If you get sued or something they can't come after the money you have in your trust. Just like how if you sued a corporation and they don't have any money you're not going to get a cent out of the founders personal bank accounts. Also in America we have a death tax which means when you die and you pass on your money to your kids they're going to get hit with a death tax of up to 40% one of the highest in the world and trust help your kids avoid that pesky death tax. That way when you die your kids just take your place on the board of trustees and all the control that comes with it. But trust are just one part of the secession plan. What really ties everything all together is this next tool that is very very sneaky. Anything that you want to say all then on what Jake talked about with trust. Yeah absolutely so trust is a very non specific term when it comes to a state planning there I think the friend of mine told he's an attorney told me this once but I think there's over 70 different types of trust that are currently in use in the United States. And so the arranging of those trust not all of them do what he's describing right so for the majority of people that maybe watching this video for you a revocable family living trust maybe the best option because they can give some benefits of voids probate has some action. And so that's a very important aspect of an enemy to a degree which you don't lose control the assets because it's it's revocable right you can still put things into it take things out of it make adjustments while you're alive. What he's talking about in most likelihood is that there's irrevocable trust planning that actually takes assets from your right pocket in your estate and moves it to your left pocket outside of your state. That degree of separation allows for different tax favorability in the state tax problem once it's out of your state you may not necessarily pay any state tax on that now there's other things transfer tax generation skipping problems that come up and that's by working with a qualified attorney is really helpful. But I want to just set the stage for people that just getting a trust doesn't mean you're going to do with the Rockefeller's did. However, for the vast majority of people getting a trust is a genius idea and you can do some aspects of what the Rockefeller's did with life insurance. But it's like the difference between building a skyscraper versus building a four apartment building right they both house people but they're very different in their structure. Yep, the even he Jake said if you have a measly 10 million dollars well that's not so measly for majority of people including us watching this is like that would that's not pocket change or any of us on the so I think it's is one of those things where a trust like you said very very valuable now does it have to be irrevocable and some of the things that he talked about in the video maybe but you need to be at a certain wealth level to make that make sense. And it has to be set up and it will cost a lot more to set it up properly. Yeah, from a go ahead. I was going to say from an irrevocable trust perspective right that that's the idea that you were talking or really what he's talking about of removing the separation from a revocable standpoint obviously things can be changed which is there for continues to stay from a control perspective. So I'm curious your thoughts of like Jake talks about you know owning nothing but still getting control in my mind I actually think it's the opposite when you actually get a re in irrevocable trust you actually lose all of control because it's now no longer within that that same separation and now somebody else controls it. So I'm kind of curious your headspace on because you've been said losing some of that control when you set it up this way and so I'm maybe I'm missing something but it seems like there's a disconnect between actually where the control piece still comes in when you when you have a irrevocable trust. So the I think in layman's terms putting things into irrevocable trust planning because of the separation outside of your estate you can lose control now certain trust structures and how trust can be structured to have a for example. For example, a board of trustees I think Kale if you said that term maybe him you jaked it but having a board of trustees that you have direct influence over. You can still get what you need and control that asset to a degree so there there are I don't want to call new polls but there are lots of ways to structure something to still give you the ability to effectively poll levers without being the person for example if a life insurance policy is held within an irrevocable trust. You may not be able to call the insurance company to get a policy loan for a big investment but the trustee will if you call the trustee they'll do that for you right so there's there's ways around that problem but really moving something outside of your state is a great way to separate the tax burden of that asset for a state tax purposes. There's a lot of other things as well but I think does that answer your question. Yeah no and I think to the overall point is that there's showing this is showing that there's some complexities to it like bringing in a board of trustees and how it's get set up and the influence you have and that's why it really does come down to a specific person on you know it's do you imagine somebody who literally makes $10,000 a year that's like hey like I want this concept and I want an irrevocable trust and then trying to go find like a whole board of trustees. Guys I need you seven to be on my board to foster this $4,000 of assets right now right it like it just doesn't really make a lot of sense especially in your like wealth building phases of life. Yeah and I think something that I want to try to make clear for for our viewers because we've had a lot of people come through on ultimately onto my calendar had conversations like hey can I set up a Rockefeller trust. The general answer is yeah if you've got a couple million dollars net worth you likely could is it going to be the best way to accomplish what you're doing we work with a fantastic attorney about 30 years in the industry who specializes in creating these types of Rockefeller method trust one of the things that he shared was where he's worked with thousands and thousands of clients. About a think Caleb you're on that call maybe 20 or so of those clients ultimately set up a Rockefeller method that mirrored the Rockefellers everybody else did a hybrid because it was easier to manage easier to control and ultimately required less maintenance and ongoing cost. And so that's where bringing in a team to kind of advise on that and work with attorney who knows what they're talking about is really really helpful with Caleb's helped talk with a couple of people who used an attorney team ultimately didn't actually get what he wanted now having to work with somebody brand new because the first group asked it up and charged him a lot of money for the privilege. Favorite subject. When you hear the word life insurance it conjures up images like this and from the average club life insurance is exactly that's but for the ultra wealthy life insurance is this insanely powerful tool that they keep on the wraps. There's a reason why the Rockefeller family has their own life insurance company the Rockefeller insurance company that's because for the ultra wealthy they use life insurance as kind of like a bank account but not just any ordinary bank accounts they use life insurance as kind of like a super bank account that can be used to be a bank account. That can be used to invest tax-free it sounds weird but this is because all life insurance is is a contract a contract that has some very nice tax benefits because politicians don't want to tax the poor widow that just lost her husband. The problem is the traditional life insurance policies that are sold to the masses absolutely suck they're made to enrich the insurance companies and not you you buy life insurance plan you pay some money every month to your insurance company and in exchange when you die the company gives your family a couple million dollars nothing more and nothing less. So what the ultra wealthy do is they take this basic contract and they just negotiate better terms and this allows the ultra wealthy to do something very very special they put as much money as they want into their life insurance policy where it grows tax-free and then they use that money that they put into the life insurance policy to invest in whatever they want so their investments grow tax-free. Your money is safe it will grow the rest of your life it will grow tax deferred you can use your money tax-free it will get passed on tax-free it has a lot of other benefits and so that the this is a I think a really important point to to hit home one of the things he just said is just factually inaccurate you can take money out your policy tax-free to buy assets that are going to grow tax-free no now there are specifics around something called private placement life insurance where you may actually have the ability to put specific assets into a life insurance policy private placements a very high net worth situation that's completely different private placement is not typically used in this type of insurance policy. In this type of insurance planning they're using the same type of insurance companies and contracts that you and I would use right so even big mutual companies not mutual companies providing that death benefit but the nature of the contract gives us that tax deferred not tax-free treatment of the growth of the asset you can access it tax exempt so non tax along that loan and then invested but whatever investment activities you're doing if that gives us an income whether capital gains or earned income it's taxable now not tax advice but that's how I understand taxes toward. Yeah and but if it was in irrevocable trust concept again we're not giving legal advice you could see where yes but you could see where that tax is not on you it's on but but you're saying that tax has to be paid somewhere somehow. Yeah the piper's got to get paid Uncle Sam's going to come knocking so there's a lot of structures that can defer mitigate and offset the tax to different entities you may owner control but taxes are still a factor for sure. Yeah it will be interesting I don't want to go down this road right now but it would be interesting if you look at charitable entities like foundations and all if some of that stuff is mitigated. Oh absolutely and that's good for the clarity there other charitable trust foundations those are places where you can actually compound and grow those dollars tax free and use them tax free for certain circumstances but earning the money to get it in there that's going to cause a taxation problem right. There was also a part where Jake talked about how the typical type of life insurance quote unquote sucks and I just wanted to kind of just put the elephant in the room and share a little bit of my perspective on that and the reason being is if you know anything about us here at Betta wealth like we we specialize in what we call overfunded whole life insurance which is essentially optimizing the cash value piece of it and making the policies efficient as possible based off of the goals of sure. On especially for a storage of capital usage but the typical whole life that he's referring to that sucks really maximizes the death benefit as much as possible but when doing so that strategies actually use a lot of times by the extremely ultra high net worth from an estate planning perspective right when you start looking at the massive tax bill that people are having currently right now correctly if I'm wrong but it's like 20 million ish for a married couple and the sunset rules going to come pretty soon so it's going to be a whole lot less pretty soon but that type of individual uses the sucky life insurance to get as much death benefit as possible to then be able to offset the tax bill that someone's going to have at the end of their life as well. A lot of other benefits and so what the wealthy use it is they don't use it as an investment they use it as like a safe asset I call it the and asset because they're able to give their dollars more than one job and so they're able to do that while it's protected while it's off the radar screen of the IRS because it's not considered income that's how a lot of wealthy people use it and then step number three is usually what they to take the money or to utilize the money you're not withdrawing your money what a lot of people do because that would be in a lot of cases taxable upon gain. They're borrowing against it or using a third party bank to borrow against their asset and as a result if you borrow against it it's not considered income. So a lot of wealthy people like Elon Musk and all these people they're they're borrowing against the equity and their businesses insurance and when you max fund insurance that's why a bunch of banks do this is over 3000 banks two day have what's called bank on life insurance some of their safest assets in the bank is in bank on life insurance why do they do that it's an asset that they can borrow against and key team. Members and employees and so many institutions use life insurance not as a death benefit but as an and and as a place to store and use their money but not only that just like a trust. Yep. Can we just pause for a second to give Caleb around of applause on that segment. That was that was fire. That was good. That's good. Thank you. Go on the man. All different places. I can't. I don't remember. I don't recall being like that straight up but I was like man that hair cut. It was tight tight. Jack it also looks like you're like a priest or something like that too the way that said so. Love it love it. All right let's keep let's keep moving. The money that the rich put in their life insurance policies are also protected from creditors and legal penalties. But where things get really crazy is when the rich start borrowing money against their own life insurance policy and then they use that money to invest in more assets. So basically what rich people do is they put let's say a million bucks into their insurance policy and that money in their insurance policy they invest it into like the stock market or something and it returns 7%. And the whole game is borrowing like 100k from that million at like a lower interest rate on your loan at like 3%. So yes that's exactly. I have to I don't even know my response we'll see but I was like Jake. Can we get a better example that like putting money at a 7% index fund like I I would hope the wealthy would do something better but I was like you know what I'm not going to I'm not going to try to like correct everything we're just going to try it like the big point of this video was to say that the wealthy use life insurance as an asset it's not an investment. And so there's a lot of things that we were trying to do in this video but I I will see what I said to this. Whatever your responses you look excited to give it. Yeah. Very conservative numbers if you borrowed at 5% and you earn 7%. Your money and your insurance is continually growing you're getting all the benefits of insurance but on that borrowed at 5 earning 7 that's a 40% rate return in the first year. So you're getting a 40% rate return on that side and people might say that doesn't make sense. You're becoming the bank you're using arbitrage your investment is the 5% not the full money because your money is in your policy continuing to compound. So the same thing goes with making a greater rate return as you the benefit of this is having a dollar doing more than one thing and the people that borrow against it they have to make sure that their activities get a greater return than what the cost of borrowing and if you can do that you can really have a dollar doing more than one job. But how does taking a loan out on your own life insurance pulse anything that you guys want to say on that. I would just say that I think that's well said and I think that the thing that's even missing is the other benefits that come with it that we're not talking about right like giving somebody the permission to spend their cash value because they have the death benefit may have something to pass down. You know using it as a volatility buffer cash loan retirement like just peace of mind so you show more powerfully there's a lot of things that life insurance can do for somebody that's not directly resulted in a rate of return. All that is there anything you want to say before I continue to watch. How does taking a loan out on your own life insurance policy even work like where do you even go to do that. You could go right to the insurance company and they give you an unstructured loan no questions asked and you could just say hey I want a $200,000 lien it's almost like a HELOC but it's an unstructured. So when you go to a bank and get a loan you have to pay that money back insurance company you don't have to pay that money back because they know that you're going to die someday and they have that unilateral contract and they're paying upon your death. So the cool thing is Jake you have this outstanding loan a $200,000 loan you're doing things with it and you never pay that money back when you die the insurance company is going to pay out your beneficiary your family minus what you owe them. So insurance is one of the only institutions that doesn't require you to have to pay back that loan because they're hedging both sides they're hedging your mortality and they're also hedging interest rate and because they're a lifelong contract commitment they're going to last a lot longer than we live. They can play the ultimate long game and so we call these loans but they're just in a more efficient way to use money and you can decide if you want to pay them back because it's either going to come out of your legacy yeah it's either going to come out of your legacy or out of your pocket while you're alive. Makes sense so when you say unstructured that means that there's no like repayment terms like you decide yeah unstructured means you decide when you pay them if you pay them how much interest you pay them and and you're really in control because you are the owner of that contract. But where really ties everything back together is that when your kids die you say enough so that the what you said was extremely powerful you get to decide on if you want to use it today while you're alive or use it on your legacy and I think that's the really really cool part about life insurance is it gives you options. There's so many tools out there that kind of puts you in a pigeonhole in one box you have to use it for one specific thing but life insurance gives you the options to do different things depending on life circumstances and that exact moment in time really awesome. Yeah I think that was really well said Caleb that it'd be the only thing that I want to clarify just for the sake of people understanding what's actually happening is one of the things you said is your repayment terms. It's another structured line of credit because there's no repayment timeframe right and you don't have to have mandatory payments because it's going to be paid at your death like you said but there isn't interest rate occurring against that loan. You can choose to pay it back quicker pay back more interest that's kind of types into the idea of infinite banking but there is interest the insurance company is charging because they have to grow their general account and that may be money that they're investing to you on that loan they have to grow that general account to pay ultimate death benefits. So I just want to make that yeah point there. No I yeah it's it's like anything we we I think we talked for like over an hour Jake and I on a Google meet which is funny because it's like the most viral video that I've been a part of it's like shot the most create like not even to the quality that we have it just tells you how awesome storytelling can really take something to the next level. And there's I mean to his credit he picked sections and thought he did a really good job but maybe there needs be a part to this whole thing and I'd be curious if you're watching this like if we did a part to a Jake what would which of the subject be how can we frame it because we can get a proper frame I think I could pitch it to him. Do the time the next part of this video goes into foundations let me go to the very end because I think they do like a promo for us. And then I would encourage everyone to check it out if you have not watched it subscribe to Jake we love to hear from you and it's kind of special it's it's the chance the better wall channel has grown quite a bit and it's because we've put out great content but this channel definitely or this video when it went live helped a lot and it brought. Exposure to to people that didn't even know that we existed and so we definitely need to do more of this ongoing collaborations with other channels and so very grateful for that. Top the picture makes all the money he then puts the money into trust the family members are a part of the trust and they each get their own life insurance policies any extra money can be put into the family foundation for other strategic goals and when the family members die they're death benefit from the life insurance goes right back into the trust to keep the family pod growing. And to manage all this you have what's called a family office basically a group of the best of the best wealth management advisors to deal with this giant mess and there's a reason you probably haven't heard about most of this. The wealthy try to keep trust foundations insurance all of us on the download mainly mainly because again they don't want to create a spotlight to how they're controlling and passing on money and so it's the same people that will create confusion in the education system. These are the same people that are saying life insurance is a horrible place to put your money they know it's not an investment but they love financial pundits saying that it is and as a result many people are just by in term investing in the stock market doing their thing putting their head down and are getting broker and broker every generation because they're not controlling and using their money like the wealthy. So one of the biggest reasons most people are not talking about this life insurance even in our industry is majority of people are not incentivized to do the right thing so the reason why majority of life insurance policies are not set up like what I've been sharing with you is it comes down to compensation and commission we get paid about one tenth of what a typical life insurance person would get paid for setting up a policy the reason for that is we're trying to keep the policy as flexible and as overfunded as possible and we're trying to keep the policy as flexible and as overfunded as possible and we're trying to keep the policy as a whole. We're trying to keep the policy as flexible and as overfunded as possible and we get paid on what's called the base premium and and really the secret behind this is getting the base as small as possible and using other ways to front load and finance the policy and so number one the ultra wealthy don't want you to know this because they they've been using these strategies for years upon years but then a lot of the people in our space don't necessarily want you to know about this because they're making a lot of money selling typical life insurance policies for a state planning and so the reason we're able to do this is we play the role of the state and we're going to play the volume game we're going to do the right thing we're going to make money helping people set this up but we know that we're just going to serve a lot more people and in the end it's it's a great business for us to be in but everyone that works with us gets an incredible policy that's super flexible that is almost feels illegal to have. So again if you're interested in using life insurance in this manner scroll down and click the link below to go to betterwealth.com slash jake to learn more. If you're interested in using life insurance in this manner you can get clear about where you're at and where you want to be to see if you would actually benefit from the strategy and if the strategy would help you though walk you through all the stuff and help you get set up with everything and keep in mind Caleb was telling me how this strategy really only makes sense if you're able to save at least $10,000 a year because there are some fixed costs that wouldn't make it make sense if you're only able to put in a few hundred dollars a month. So let me let me say something real quick just through Garza last clip in segment that we just watched. I think that if we don't say something that may be a lot of advisors that are watching this that may essentially get feel some type of way about maybe something that Caleb said and the first thing that I want to say is that I think Caleb of all people will say that as time goes on we have gained tons of wisdom in the space and we have grown tremendously even go read our book the end asset you can go ahead and read through some of the stuff and we kind of like cringe as we read through some of it. And I think every year that goes by there's things that we said that we may have been like you know what we probably could said this a little differently or you know what we could probably position this a little differently. And I think that some of the things that I've learned and matured about is because I was very heavy in the way that I said this is that agents were very commission heavy and they are intention was to do the wrong thing and that they were doing higher base policies intentionally to essentially get paid my money now with that being said I think I could probably speak for everybody on this call is that there are some advisors that do do that there are some advisors that intentionally will increase the base so that they can make more money. On the other side I do think that there are other advisors that intentionally increase the base not for their pocket books but doing it because they truly do believe that it is the right thing and so when we talk about that there being a right we are wrong way I think that the whole purpose of what we try to do here better wealth is ask really great questions. So getting to know what it is that you really really want not just out of a life insurance policy but what you want at a life and then hopefully what we can do is design the policy accordingly and sometimes learning from all been increasing the base actually can be a slightly beneficial thing whether that is getting more death benefit of front or giving the ability to put my money into the future or helping with an estate tax problem later on in life now for other people that want to strike high early cash value policy and they want as much flexibility as possible designing with the lowest rates possible would act actually be the best case here for you which is our conversations with 19 5% of the people that were having conversations with so with that being said life insurance as a tool life insurance can be designed a specific way and designing it based off of what you as a consumer want is the most important thing and really there isn't a right or wrong way but designing it wrongly will be designing it at the opposite way of what you ask for and I think now that is malicious and not integral and that is where I think that the industry is getting it wrong. Yeah and we got to stop after a few minutes I'm getting the hard stop from Joel our producer the thing that I would say you said it perfectly dumb is it's not even that individuals are trying to screw people I think the system is not necessarily set up to have us be able to optimally help individuals even in how commission structures are set up how it's like it's like you either eat or you don't eat and then you even have your mentors or the people above you that are incentivized to do a certain direction so I think it's important to understand those incentives but I also I do think like you're for sure like the older we get I think the more moderate we get believe it or not because it's just like you know there's there's I mean I think we did like a full base policy you know so that's not like we're evil it's like the person that wants to do it. I wanted to do that it was the best situation for them and they saw all all the scenarios and so yeah appreciate appreciate you mentioning that and I just also just want to say like how cool is it for us to do this review and I just it brings back great memories. Well that video almost has a million views and has we've been we've been able to meet so many people because that video and so it's just really really I'm really grateful that Jake that we were able to do that and I'm excited for this this next year and all of the collaborations that we have lined up if you have a channel or if you're if you're like hey Caleb you should go on this channel or have a collaboration please reach out because we're hoping to get our message out to more people. Uh final thoughts for all then and then you don't. I think overall this is a great opportunity for us to review this and to land the plane on the insurance conversation when it comes to what your need is coming in the door that tells us what type of policy may be best proposition for you to review. Right we've we've sold dozens and dozens if not hundreds of base focused policies for the purpose of death benefit protection solely that's that's kind of what my state tax mitigation is we want those types of policies. But if you come and saying you want high cash value it would be unethical of me to sell you a policy that's focused on death benefit just not giving you what you want. So what we do we do both and I think this highlights this very versatile asset of life insurance depending upon what your needs are we're going to build it the way it needs to be built. Yeah. Last thing I'm grateful I'm blessed to be here being here with you guys is just an example of us being intentional living in central life. I had a lot of fun and hopefully we can do more stuff like this in the future. Guys we'd love to hear from you if you're not subscribed to this channel what are you doing please subscribe. Please share share content with people that you think would add value and if and if we can serve you and your family and your loved ones please don't hesitate to reach out love you all peace.