The BetterWealth Show

How To Use Life Insurance for Alternative Investments

Written by Caleb Guilliams | Jan 19, 2025 5:47:53 AM

Unlocking Financial Freedom: Alternatives Beyond Traditional Advice. How do you create enough cash in your life that you have options? Because when you have more options, you have more freedom. The question is, how is that going to enhance future cash flow?

I thought about the couple I had helped, where we freed up $6,000 a month by paying off some of their loans and debts creatively. They actually bought a four-wheeler with that money, but that freedom to use it as they desire is what really matters.

Ingredients of Financial Freedom

Creating financial freedom involves having a solid framework to analyze deals, understanding which ones to consider, and then deciding on the best investments. I had experiences where using the bank’s money was part of the strategy.

  • Leveraging credit cards strategically can equate to significant returns.
  • Investing in oil and gas royalties can provide substantial passive income.
  • Raw land investing partnerships have been a lucrative venture.

Evaluating Financial Advice

The conversation often touches on traditional advice, such as relying heavily on life insurance as an investment or debt pay-off strategies touted by financial personalities like Dave Ramsey.

  1. Analyze the returns and fees involved with using life insurance for future income.
  2. Consider the opportunity cost of traditional vs. alternative investments like real estate.

Personal Journey into Financial Freedom

Chris Miles shares his personal journey, starting from a background of limited financial education to becoming financially free through alternative investments.

His father's traditional savings method wasn't enough for retirement, prompting Chris to explore different avenues. That led him to real estate investing and achieving a passive income that covered his expenses by age 28.

Proven Formula for Financial Success

If Chris had a few minutes to share his formula, it would highlight breaking away from the accumulation mindset taught by traditional financial advisors. Instead of stockpiling money, it’s more effective to generate income through investments that produce cash flow.

  • Avoid just hoarding cash; focus on investments that yield monthly returns.
  • Use financial leverage smartly to maximize returns and cash flow.

This blog post is a transcription summary of Caleb's insightful conversation with Chris Miles on the BetterWealth Show podcast.