How To Get Maximum Returns In Retirement Using Life Insurance

 We're in the accumulation phase and we can dollar cost average. The difference between average returns and actual returns is less impactful. This gives you the benefit of dollar cost average. So you're getting benefit when the market's down. You're getting to buy things at a discount. What I love about what we're going to get into is we're almost taking that to the next level and not just saying this one thing, but we're looking at ripples on your portfolio. And so that's when it really gets dangerous. When we start pulling money off of an account, the difference between the average and the actual accelerates. It's much bigger difference than it is during the accumulation phase. How does Todd factor that in when you're talking to somebody about pros and cons of pain taxes now versus deferring, postponing to an unknown day at a time? Disease is caused by stress, right? And is that a time in your life where you really want stress or would you like the freedom of no end? Hey, I can count on this other asset and it's going to reach in there and pad those down years on the other side. What does that do from you from a stress health standpoint? That's not even in the numbers. And yet it is. Why are we saving money? Are we saving it to pile up money? Are we saving it to have something to spend in the future? And it's interesting if we're saving it to spend in the future, then why is everything about what we're piling up? Instead of about that string when you get to that end, right? All right. Everybody, we're going to continue the series with Todd Langford, the founder of Truth Concepts. And in today's video, we're going to be talking about this concept of the ripple effect. And like anything, it might be easy to compare one asset versus the other, but a lot of times we're missing context. And that context might be something that we don't think is a big deal, but they have ripples and it compounds. And so without further ado, Todd, welcome back to the show. People have been loving the way that you articulate different concepts. They've been loving the calculators. And just very grateful to be doing the series with you. And really bringing numbers and backing up statements that may be true, may not be true. And I think today's video is going to be technical, but it's going to be worthwhile for either the consumers that really want to understand this, or for the financial professionals that really want to take that next step to be able to really serve their clients at a high level. Thanks, Caleb. Thanks for having me. And yeah, I think that, you know, we need to talk about the context around this, because it does get a little bit technical as we go through the numbers. But I think the other side of it is there's not enough numbers to support some of the things people are saying. And the reason there's not is because a lot of the stuff's not true, right? So let's talk about this from a contextual standpoint first. And then we'll take a really deep dive to show that what we're talking about is actually truth. And that can be proven out numerically. Because if it can't be proven out numerically, how true is it, right? Yeah, I love that framework. So we talk about ripples. One of the things on the surface is to think about what happens when people compare assets in the marketplace. And many times those comparisons don't include all of the ripples. Only the ones that support the argument that somebody wants to have everybody believe, right? And so we have to include all the ripples of every decision, both the good ripples and the bad ripples to really see what we are and keep everything on a level playing field so that we're actually making a valid comparison. And so typically, if we think about a portfolio of equities, typically in order to follow modern portfolio theory, we're going to have a portion of it's going to be in equities, a portion of it's going to be bonds. But what everybody hears is, oh, well, the S&P has done somewhere close to or in excess of 12% for the last 40 years. And that's what everybody has in their head as like a benchmark. You know, if an asset or an investment isn't doing 12%, then I could always beat that with a market. But there's ripples in that 12% that are left out, right? That is a gross average return that's happened. And we're going to dig into that and look at what averages look like. But there's other components there. There is the component of taxes that have to be paid. There's a component of fees and commissions that come directly off of that return. And a big one that I don't think you ever see. And that is the certainty asset, right, that supports that modern portfolio theory. And that's the bond piece. And what that does to the overall return is kind of left out. What I want to point out is in bringing up the ripples conversation, this is very much like the funding calculator on steroids. It's like the funding calculator very much is meant to look at whole life insurance and compare it to potential other assets like assets and to get you to start thinking of like, okay, when you look at something like an intramurator return, it doesn't necessarily share the whole story. What I love about what we're going to get into is we're almost taking that to the next level and not just saying this one thing, but we're looking at ripples on your portfolio and all of that when it comes to unpacking that story. And so that's what I, that's where I didn't want to necessarily interrupt. But I want to set the stage of some of the things that you're talking about as it's hard to sometimes compare this asset versus that asset. And then when you start adding it to a strategy or portfolio, it can potentially even get more complex. Absolutely. Because, you know, in line with exactly what you're saying now, we've got two different types of assets when we're talking about a life insurance policy and our investments in the equity. Life insurance policy is a savings vehicle. That cash value is really a savings vehicle. People want to combine it and they want to do that comparison with the marketplace. And it's really not an accurate piece. But when we look at that and we think about the ripple aspect, it's kind of interesting because the numbers that we hear typically on a return to life insurance policy, you know, the cash value over 30 years or so being in the four, four and a half percent range. And people are trying to compare that to the 12 on, you know, on the equity side with the S&P. And that's not, we can't compare that because, hey, those are two totally different assets. But if we go on with the ripple piece, when we hear that four, four and a half, that's net. That's after the annual taxes. That's after any commissions and fees that haven't been taken off the 12% on the other side, there's also additional ripples that end up getting left out when we're looking at the life insurance side. And that is the death benefit that comes along that's included in that return and potentially waver a premium disability benefit to make sure that that savings vehicle actually completes, right, that even in the event of a disability. And so, so you've really got some differences. And as you added the strategy portion, how does that fit into the strategy? Does one of those assets actually take on and do more than one job that can't be seen unless we really pair it up in somebody's financial world? I love it. All right, let's dive into the math and I'm excited to follow the logic. Okay, so hang in there with me as we go through this. You may have to watch it a couple of times to really sink in. But what I want to start with is let's just look at 40 years and we're going to look at 40 years of the the S&P. And so we'll go to the market history and we're going to look at the last 40 years of the S&P with dividends, which is, you know, arguably the best of the best, right? There's been, there haven't been many personal fund managers that have beat the S&P over time, maybe in one or two years here and there, but over the long haul, it just really doesn't happen. And so when we look at this, we see that the average for the last 40 years is 12.62. Right? Now that's made assuming that that average happened every year. But as we know with averages, there's ups and downs. My mentor, Norman Baker, used to tell a great story about averages and I think it was right in line. So as Kim's copy and these numbers for me, we'll talk about that and anybody who knew Norman knew he didn't take on a lot of exercise, but his wife Peggy was a pretty good runner. And what Norman would say is Peggy and I average 40 miles a week. Right? She does 80. I do nine. We average 40. Okay, well, that doesn't really work out. And yet that's the way averages are seen many times, right? And so if we take this and we look out over time and we look at 40 years and it's interesting. So that was, let's use the fix rate first and that was 12.6. Is that what we saw there on the average? If we look at 12.6 and let's put in say a current value of 300,000 dollars and let's look at savings of 20,000 dollars a year added. Now over this time frame, that's a huge number. We've got $55 million out there at the end, right? But that assumes we are in 12.62 percent every year. Now let's shift to that and use the actuals that occurred over the last 40 years and see how close it is to that number rather than using the average, which is just the sum of those added up divided by 40 years. So if we switch that to the variable rates and use that fluctuation, now it's 32 million. So that is a massive difference. Look at the relationship between those two. And yet what we hear about the market is always the averages. It's average this over time, but the real returns were a little over half of what the average would actually return. And a point that I want to make is anytime we do assumptions or people are like, hey, just assume this, they always use the average rate return. You always say like, hey, assume an average of 12 percent and what you're essentially saying is just use 12 percent because that's the average and you're making that assumption. But this would be a big difference if you assume the average versus what you actually got in that same time period. And so I think that's a wonderful picture. Yeah. And so it really is a massive difference. And yet what's interesting, and we won't go into that today necessarily, but during the accumulation phase, which is what we're talking about here, we're actually adding money to or not pulling anything off of it. During this time frame, this difference is much closer than what happens during the distribution phase. And so that's when it really gets dangerous. When we start pulling money off of an account, the difference between the average and the actual accelerates. It's much bigger difference than it is during the accumulation phase. So this is closer to being right. And that tells you how far off it can be during that distribution phase. And Todd is another way to say this is, this gives you the benefit of dollar cost average. So you're getting the benefit when the market's down, you're getting to buy things at a discount. And so whereas if we go down the mountain or in distribution, those work again. Like you don't get those extra cushions. Is that is that another way to be able to say that? Yeah, that's exactly right. And if you think about it, it's kind of like this during the accumulation phase, we have a down market, but we still have those assets. So when the market recovers, it comes back up, right? But when we're in the distribution phase and we have to eat every day. So we're not like we have a choice. No, we can't, we're not going to pull money out because the market's down. What happens is when the market's down and we have to take money out to live off of now, then the recovery of the market didn't fix those dollars. We lost them. So it really hurts them. Okay, I love it. All right. So we can see a big difference there in what happens. But let's look at dollar cost or I mean at modern portfolio theory, where we're having to have a certainty asset in the mix, typically bonds, right? And so what I want to do here is shift this. And I'm going to use a 50 50 split. There could be, you know, depending on somebody's risk aspect, they might be 60 40, in other words, 60% equities, 40% bonds, it might be 50 50. You know, it could be all over the board, depending on somebody's risk tolerance. But let's, let's do a 50 50. So 50% in bonds, just to keep things kind of simple and 50% in equity. So we're going to cut this in half on this side and we're going to use the a part of this calculator as the equities portion, which has the S and P in it. And then we're going to go to B and we're going to put the other 50% so 150,000 out of the 300 and $10,000 a year going in here, earning a flat 4.5%, which is actually higher than what bonds are doing right now, right? And now if we go over to both and see what those look like as a combined asset and we rebalance the account every year to keep it in those 50 50 ratios, because what happens is if we don't rebalance every year, then the equity side is going to be out. It's going to have more than the than the bond side and be out of balance. So with that, look what that did. And this is so left out, that knocked this down the $12 million by having that bond portion in there at 4.5%. And this is part of the portfolio. It's one of those ripples that's really never talked about. I mean, I don't know of anybody that would have money just in equities without that other portion. I mean, it could happen, but that's not normal. And so usually it's a portfolio that consists of both. Pretty amazing. We've gone from 50 50,000. What's that? In a scenario, do you see 50 50 being a common? I know that that's easy for right now, but like, what do you see commonly? Yeah, oh, 64, let's use 60 40. It'll make this look a little bit better. We can go back and adjust that. So let's go to the A side and we'll use 180,000. And let's use 12,000. So that's going to be our 60% split going to equities. And then on the bond side, we'll use 120,000. And 8,000. OK, so here's a 60 40 split. Now we look at both. We're actually close to this. Oh, change. We need to change this up to 60 40. And now we see that pushes up a little bit and that's 15 million. And it's still a long way and see what did everybody hear in their head? And that's what gets so confusing in the media. It's like, well, 12%. And so you hear a lot of people say, well, if the S&P is averaged 12.6%, surely I can do 10. Conservative. Without even thinking about it. And yet what happens here is 12 is 55 million. The reality after a 60 40 split with bonds, assuming they could do 4.5% every year. And this is before taxes or commissions yet, we're down to 15 billion dollars. So we've cut it to less than a third. And that's that is just amazing. And it's one of those ripples that's just normally not in the conversation. 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 revamping it. And if you are somebody that wants to learn more about is life insurance rate fit for me, does this end asset make 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 then we have an end asset vault 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.com slash vault. Learn more. Yeah, that's a I appreciate you laying this out. And part of me, when I look at this is is it, uh, it's important to to rebalance. It's important to do this. But when you look at in hindsight, you'd almost be better off going all in equities. I don't know your thoughts on that. Obviously, it's like, we can't we don't know what the next 40 years are going to look like. And so that's why we create diversification to begin with. But what are your initial thoughts on that? Because I know when we talk about the distribution phase, there's there's reasons why we have safe assets. Right. And we need that we need that side in the portfolio. I think just most people don't realize what kind of damage it does to the overall return in order to provide that that piece of certainty that's in there. And I think we can as we get to the end, we'll we'll make this better. But I think it's an important piece because if we go all equities, the problem is, when are we going to need the money? If it's in a downturn, you know, that's that's a problem or we don't have something to carry us over. And I think for most financial advisors that are advising on those portfolios, you know, there's some trouble that they would get into if they had somebody exposed with a hundred percent of the equity side. So, you know, they're allowed to do that. I'm tracking so far and it's so far we're starting to see the ripple effects of just different decisions. Yeah. So let's now like say, we need to we need to add those other ripples which are taxes and fees, right? And so if we go back to a and for this individual, what I'm going to use is, let's say they're in a upper end 28% bracket and they've got some federal income tax, I mean, some state income tax as well. But some of this is going to be treated as capital gains. Some of it's going to be regular income, dependent on how the the long these stocks are kept inside of the funds. So I just want to use a blended rate of 20% on taxes, all right? So if we use 20 here and then let's do the same thing on bonds because some of it could be taxed at current income, but some of it might be it might have some muni municipal bonds in the mix that are tax-free. And so we'll use 20% there as well. And let's see what that did just on the taxes. So that brings us down to $7.8 million. It's crazy. It really is. I mean, the first time I saw this going through it with the numbers, it was like shocking to me. I knew it would have an impact. I just didn't know it would be to this to this degree. And then in order for somebody to you know, keep this fund balanced to do all the buy and sell it inside of it, we need a fund manager that's going to charge us at least a point and a half. And so let's put 1.5% on fees on both the equity side and on the bond side and see where we are overall. And so what we see is now that's brought us down to $4.6 million. And the devastating part of this, what somebody saw in their head, what they were thinking if they'd ever put a financial calculator to the calculations based on that 12.6%. 55 million, it's like, well, I don't really need to do any planning, any financial strategy. Right? I could mess up and I'm still great. And that's the devastating part about some of this, is because now when we look at at this scenario down to 4.6, understand that they had to earn that 12.6 in the market on the equity side to do this 4.6, which brings us down to just sort of a 5% return at 4.98%. Basically is what we're doing over that time frame. Yeah. That's really, that's really eye opening to look at the actual rate of return and you're totally right. We're looking at a 40 year time period that's pretty positive. Man, how many down years total, I mean, we're talking five, five down year, five potentially five here. What's below there? Six, seven years. Seven years out of 40. An average of 12.6. And what we see after we add all the ripples, which again, that's just what's left out of most conversations brings us down to a 4.99% rate of return. Yeah. Crazy. Okay. So what if we wanted to improve this a little bit? What if I were to shift the bond portion, which is really our certainty piece to something that's more certain, has more guarantees and is actually more level, because less volatile in whole life insurance. What if we invested that there and just shifted those dollars over? Let's just see what kind of impact and then talk about what the further ripples might even be from that. Yeah. See here in this scenario, if you think about it, we won't go to the trouble to add that in there. But if we made this decision to push all these dollars here, how would we protect our family and the unlikely event of a premature death? Right? We'd really another ripple that would be would happen because of this decision would be we'd have to buy a term insurance, which we would hope to not collect on, that would be pure cost. But it's part of really it would bring our rate of return down if we had to figure that in the mix, right? Yeah. So that's where the funding calculator comes in, because it's like, yeah, you add in you add in term insurance and now that's that money's got to come from somewhere. And so we would take it out of the cash flow. Right. And now you have less money to be able to work for you, meaning your accounts have to work harder just to maintain, which would mean that your actual yield would go down. Correct. Yeah. So let's see what happens if we were to shift some of these dollars. So if we go to the B and we transfer, so we're going to we're going to use a life insurance policy. So what we need to do is pull in some life insurance values here. And we're going to use the second one here on a 35 year old. And so this is just an example, but we're going to use multiples of that policy. And so what I want to do first is what if we just push the $8,000 a year that we're putting it, that we're adding to this account each year, let's just send that instead of into the bond account. Let's just send that over to the life insurance side. So we'll leave what we have in here on the bonds, the 120,000 we started with and use it as part of the rebalance, but shifting that over to life insurance, if we go to the both, it definitely pushed up our yield on the bond side. And look what it did here, it raised us a quarter of a point and we end up with in this case five points or right at five million dollars a cash, but 5.3 million because the additional death benefit to go to the air. So that that pushed us up almost $400,000, right? Just that initial piece over this time frame. And Todd, just to clarify, you're not you didn't put the 120,000 into life insurance, we just started with the cash flows of eight grand. Correct. Okay. It's difficult. That's one of the things about life insurance doing lump sums is really hard in a life insurance policy. And so I'm just shifting that and basically what the calculator is doing is it's rebalancing with the total of what it was in the bonds plus whatever's in the cash value of the life insurance, it's treating both of those together as that certainly asset. So on the rebalance, since the life insurance is performing better in the bonds, it's actually shift less money from the equities. Does that make sense? We haven't even factored in the tax benefit of life insurance yet. You're just saying that it's better performing because the life insurance is growing better than the bond assumption. Well, it's really a combination of both. There's less money in the bonds to be taxed now. So it is automatically going to reduce the the taxation on the bond side a little bit. So it's kind of all that together. But could we be more aggressive? Like if we go back to the bonds for just a minute and we look, we still see that there's like $600,000 in bonds. So what if we took, what if we shifted a little more than the 8,000 over to the bonds and we started trying to pay down this account? In other words, just let's over time shift all of the bond money over to the life insurance cash value. And so let's push this up say to $12,000 a year. Okay, that still leaves $400,000 in the bonds. But again, it pushed our yield up on the bond side considerably. So let's go on up to 15,000. I think that's a good deal. Still a little bit more. And we see, look, that gets us to $5.3 million. So we're a good $700,000 more at that point. But we still have some room here. What if we go $20,000 might be too much. But let's see what $20,000 does. And Todd, the interesting thing is knowing what we know about life insurance. Is there any reason somewhat, is there any benefit that a bond can give you that life insurance can't? That's my question. I mean, maybe yield short term. You could make the argument. But outside of that, life insurance is like stacked with so many other benefits than the bond. Is there any other thing I'm missing? Like, is there any reason why someone would have a bond over life insurance in their portfolio in this situation? No, I don't understand it because the bonds are an anchor. And it's interesting that brings up another bit of conversation. Let's adjust this down. We've actually pulled too much here. Let's switch that to $18,000 because we exceeded what we had there. Let's change it to $18 real quick. Yeah, because we had a big drop there. Let's change it. Maybe to $17,000. Interesting what happened right there. Okay. Yeah, unfortunately that carries us through, but we end up with a bunch because the way the market did there at the end. But that's all right. So let's use the 17 because it carried all the way through. But the thing about the bonds are they're a serious anchor to the overall portfolio, but people like it because it has more consistency. When we think about liquidity though, it's a problem, isn't it? Because if we're selling those bonds before they mature, we're not going to get four and a half percent on them. If we don't hold them to maturity, there's there's issues on that side as well. And so accessing those dollars becomes a problem. It's really not an end asset like the life insurance cash value is. Right. And so access to that's a problem. As far as being able to still get the return that we're looking for, it's got a poor performance. It doesn't include a death benefit. And it doesn't have waver a premium. Right. And so all of these things we have with the life insurance side. And you know, it's an interesting point when we think about the media's power over the messages that are out there because oh, this was just a couple of months ago. Bonds actually jumped up only for a short period of time to like 5.3 percent. And literally the articles that were coming out from the media, said the equity market is going to be in trouble now that bonds are at 5.3 percent. And basically, what they were saying is people are going to shift from their equity's account to bonds. So, they're going to give up 12 to go to 5.3 because they like the safety potential of the bonds. And yet that's way less net than what a life insurance policy does. And they'll never say hey, with life insurance doing a net 4, 4 and a half percent, people are going to shift from equities to life insurance. They wouldn't ever say that even though it outperforms the bonds. Isn't that crazy? Totally, totally it is. And so when we look at this, that's way better. And as you mentioned, the ripples now, what happens when we get into that distribution phase? If we do this, we're already set up for the cash flow bridge or volatility buffer or whatever language is around that. Whereas what we mentioned earlier was when we're in the accumulation phase and we can dollar cost average, the difference between average returns and actual returns is less impactful. It still had a major impact, right? It went from 55 million down to 32. But it has a much larger impact during the distribution phase because we don't get to recover when we pulled money out in those down years. So what the, but I just want to underline what you just said, you just said, like you just said, okay, it doesn't have as big of an impact. But people are saying this is 55 million to 32 million is a big impact. I don't think you, I think you like went over that. And I think that point has made it exactly. It's like we're saying that's not as big of a deal as in distribution. So hopefully you like lean in because this is where, this is where diversification, this is where like even if you didn't do the life insurance, why you can justify bonds because of the conversation that we're just about to have. Really, really important that you get that. And I know that these numbers could be overwhelming, but like I'm telling you if you can grasp this, you're going to, you're not understanding so much about what retirement planning and strategies and what a lot of people out there are trying to accomplish and articulate. And I think you are sharing in math, like you're giving the behind the scenes of like what a lot of people are marketing to. Yeah. So, so what happens out there, this is what we can guarantee. These numbers are not going to match what's going to happen 40 years from now. Okay. I'll just say this not. But what we know is things are going to be similar, right? And we need room to be able to adjust. So if we know during that distribution phase that the, the downs are more painful than what we saw here on the ups. In other words, that difference between 55 and 32 million, right? During the distribution, it's way worse. How do we, how do we make the best out of that distribution side? And the way to do that is to have an asset like life insurance that we can lean on in those down years. If we have used the life insurance or grown that life insurance asset during the accumulation phase, and it made our portfolio better than it did with the bonds, we're also set up for the distribution phase of having a place to go so that we don't have to pull money out of the equity side when the market is down. Now then we've cleaned up that side and we've made the, the distribution phase of the, when the market drops less painful, so to speak. I think that was, that was well said. Well, and there's some great information. If you look up Dr. Wade Fowl, P F A U, there is some terrific information. He's done billions and millions of iterations on super computers to, to verify the data of what happens if you don't have that, that other side and what you can pull out. Yeah, I, here's his book here, Safety First Retirement. I said this jokingly in the different podcasts. I said, Hey, if anyone wants to read this and let me know what it says, and I actually had a person that is a professor essentially at a tech college computer person, they read this book and gave me a summary and we had a podcast. That's all like that down below, but yes, Dr. Wade Fowl has been on the show very smart and talks, talks again about what we're going in what we're talking about here. So it's incredible. Awesome. Well, this really, hopefully this wasn't too overwhelming and the numbers back up, what we're saying, what's interesting about it is when we talk about it conceptually, I think it's difficult to see just really how big this is. Right? I mean, seeing these numbers grow from 55 million down to 4.6 after we include all of those ripples that come along with that. Yeah. I'm 6040 portfolio is mind boggling. We're less than a tenth of the account and people are making decisions, unfortunately, based on here in that 12.6. Yeah. A couple of questions for you. I know we assumed a 20% tax rate on the growth faculties. What someone could say is like this money could be deferred in a set, 401K and all. How do you factor in that into retirement, not knowing taxes going to be like, how does Todd factor that in when you're talking to somebody about the pros and cons of paying taxes now versus deferring, postponing to an unknown data, unknown time? Great question. So there's a couple of things that happen, unfortunately, that are really a problem. Like if our equity's portfolio is inside of a tax deferred asset, now we don't get capital gains. All of it becomes income tax rates. So that's automatically going to boost it unless we're broke. I mean, you know, the old line of thinking is, hey, we're going to defer these taxes because we're going to be in a lower tax bracket when we retire. And I think unfortunately, that language has caused people to think there's a set of tax brackets for retired people that's different than the tax brackets for everybody else. And in the United States, it's not true. They're all the same. It's all based on the amount of money we make. So literally, the only way we could be in a lower tax bracket in the future is if we're making less money. And that's really not something to aspire to, right? Welcome to America, where we reverse engineer how you're broke in retirement. You don't have to take taxes. So, but we shift, see, right, like right now, we have capital gains at a couple of different levels, but the beginning level of capital gains is at 15% versus what we might be paying in current income tax. But when we put it in the qualified plan, we're deferring that money out into the future, but it's going to come out at full income tax rates. Capital gains piece goes away. So, so in other words, the doing what you did is not as favorable for the 40 year net worth number, but from an actual accuracy standpoint, from a standpoint of when we're looking at the ripples on, but not just the accumulation, but the distribution. It's, it's more fair, would you say? Yeah. And that's another thing I just want to point out is everyone is focused on accumulation, the number, the rate of return. And a lot of times we're missing the, what is the whole purpose of why we're doing what we're doing to begin with? And we're almost like, instead of setting ourselves up for success, we're almost stacking the deck against us in, in the future. Yeah. And that's a great point. And you know, we did that here at some level. We were looking at what we have in the future as a benchmark, but really, we need to be very careful with that because net worth, when we get to distribution, do we care what our net worth is or do we care what our income is? Care about income. Yeah. We care about what we have to live off of. And so while almost all of the financial studies that advisors give are all about this age at some point, how much money can we pile up? But usually that amount of net worth includes the house, which how do you spend your house, if you live in there? I don't, you know, you've got all these things that are maybe not spendable. And it's very, very possible that with the right tools in place and the right strategy that lesser net worth could actually provide more income depending on what that assets in. And so going that full route is really an important piece, just focusing on when we get to the distribution age and how much money we can pile up. That's not, that's not really a complete picture. We need to know what it looks like on the other side when we're pulling those dollars out because we may be pounding them up in the wrong place where they're not very spendable. And so comparing that could be certainly a problem. Right. Is there anything else that you want to talk about before we talk about like different potential distribution ways down the mountain? You know, I think, I think being careful and making sure that we're looking at that side, I think that's just the big piece is getting everything in perspective. And I think you said it really, really well. And that is what is the purpose, right? Why are we saving money? Are we saving it to pile up money? Are we saving it to have something to spend in the future? And it's interesting if we're saving it to spend in the future, then why is everything about what we're piling up instead of about that stream when we get to that end, right? Yeah. Yeah. A couple, a couple takeaways that I that I have from this. Obviously, I love the concept of ripples. I think there's even if like you can apply that to so many areas of your life, health and business, there's a lot of ripples that have consequences. The cool thing about what we're talking about is we can put numbers to it. And I also think we talked about just something really key is like, why would you use a bond knowing what we know? Because they're bond, you lack liquidity in a lot of different cases. You potentially lack growth and you doesn't include the death benefit, which we don't really even include, we mentioned, but we don't include the cost of term insurance over 40 years or even what a guaranteed policy would be if we just covered that death benefit. Like that's something that there's these things compound. But then we also mentioned about the purpose of why we do what we do. And yes, the number is not 55 million. But this is a this is a responsible place to be at. And when it comes to distribution, like my question would be, you have more confidence taking out more money. And I know this is not retirement advice. This is not investment advice. But do you have more confidence being able to take out or spend more money in retirement, having life insurance versus bonds as that blend? I don't know if that question made sense, but like, and you can answer it the way that you want. But like, I'd be curious, like, if you want to maybe cover that in the next video or if you want to touch on it as it relates to just ripples in this video. Yeah, no, I think it's a really important piece. And I'm going to go about it a couple of ways. And I'll kind of circle back to the exact question. But one of the things that happens is do we want to be stressed out during that distribution phase? I don't know. No. And actually, I think more and more studies are pointing to the fact that like, I think they're going to find out 90% of most disease is caused by stress, right? At some level, it's it's it's attributing to that. And and when people get in this position of, okay, well, we're out there with our equities. Oh my gosh. Is it? You know, what happens when the market goes down? How is that going to change my ability to eat? All you say, that is stress. And is that a time in your life where you really want stress? Or would you like the freedom of knowing, hey, I can count on this other asset. And it's going to reach in there and pad those down years on the other side. What does that do from you from a stress health standpoint? That's not even in the numbers. And yet it is because if you're stressed out and you're unhealthy, that's going to cost you more money, right? And Dr. Bills or whatever else. And so that's certainly an issue. But I, I think too, where that comes back around. So I like to look at if we have a we have a guaranteed event. And that's what's beauty about life insurance death benefit. And so many people look at death benefit as something that's going to go to somebody else if I die prematurely. And that's absolutely true with term insurance. And it's an necessity, right? We need to take care of our families. It's not to say don't do this. But the problem with term insurance, if you think about it in a big picture is it's designed to be in place when the likelihood of death is very low. Somebody has gotten approval from the insurance company out to age 65 or 70. That timeframe is a very low risk of that happening. It could and we need to cover for it. But it's very low. And then with term insurance, we're supposed to get rid of it at that point in time because we obviously can't afford it out of the future. And now it's to your time when death is a guaranteed event. Right? So we have it when it's unlikely and we get rid of it when it's guaranteed. The beauty of whole life insurance is it gives us that protection in those early phases while it's given us cash value. And then it's in place guaranteed to be there when that guaranteed event of death occurs. So if you think about it like this, if you knew you were going to win the lottery at some point in time out in the future, would it change how you could spend money today? Yes. Yes. So if I have a guaranteed event, death, and I have a guaranteed thing that's going to happen, a death benefit is going to be paid for my life insurance policy when that happens. I can leverage those two guarantees against each other and bring them back in time. And now know that I can spend dollars in a different way today, a more efficient, a more strategic way today. And that might be accelerating paydown off of taxable assets, which would reduce the tax paid on those assets. There's all kinds of different things based on what the environment is at that point in time. But setting that up early allows for us to be able to take advantage of that out there in the future. I think that's great. Todd, thank you. Is there any any other thoughts that you have as it relates to always times of thoughts, but no, probably enough for this lesson this time. Yeah. I just want to encourage you all if you're watching and you have questions, please comment below and anyone that can share this video, it just helps. So if there's other people that, you know, you need to share this with that that are in our our profession industry or just someone who's like nearing retirement that should just have some different things that they should think about. I know that's maybe another video. We don't like to use the word retirement, but that's the common word that a lot of people use with this concept of, you know, shifting from creating value, which that's again a whole other video that we could dive into Todd and see if we could put math to value creation and the theories there. But point I want to make is if you are someone, if you are an advisor, if you are in this in this space of helping people with their money and you want to learn more about truth concepts, we got a link down below. Lots of fun and exciting things happening on the truth concept side and Todd, we just feel super, super grateful for you spending time with us. And also if you just have questions that you want us to be able to answer, if you have video requests, please let us know because we're going to be in a series where we can continue to be able to talk about calculators. And I'm going to bring up in the future different ideas that people are having on the internet. And we're going to see if they hold water as it relates to is the facts and truth on their side versus is it just theory. And so Todd, again, thank you and I look forward to continuing the series with you. Cool. Thank you, Caleb. This is an honor because this is, you know, this is part of our goal is to change the thought process. We're getting beat up all the time from the media on stuff that's just not true. And, you know, the numbers play that out. So. Okay.