- Infinite Banking Concept (2:49): Dan explains the theory behind Infinite Banking, turning the interest paid to banks into a self-borrowing strategy.
- Evolution of Strategies (4:38): The journey from traditional stockbroker to exploring safer and more predictable ways to build wealth.
- The Concept of Accidental Wealth (13:21): Dan highlights the power of reducing or eliminating taxes to create accidental wealth.
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Transcript
CORWYN:
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Good morning. Good morning. And great morning, guys. Welcome to another fabulous episode of Exit Strategies Radio Show. Hey, I’m your host, Corwyn J Melette, Broker and owner of Exit Realty Lowcounty Group in beautiful North Charleston, South Carolina. Hey, If this is your first time, you better strap in. Because our mission here at this show is very simple. That is to empower our community through financial literacy and real estate education guys with legacy building. That is what we do. We’ve been having a dynamic run. And it’s been a great time we’ve been reaching far and wide to bring the best guests right here on this show to give you the best information, the largest insight, most dynamic, mind blowing concepts. We’ve been doing this thing and I’m so excited today because we get to continue along that same vein, we have none other than Dan Thompson, Owner and founder of Wise Money Tools. Dan, how’re you doing?
DAN:
I’m doing great. Glad to be with you, man. It’s so exciting to see somebody all pumped up and jacked and ready to go.
CORWYN:
We got some amazing things to talk about today. So Dan, if you don’t mind, high level, tell our listeners who you are, what it is you do.
DAN:
It is really nice to be with you and appreciate the invite, I guess high level I’ve been at this for 38 years. I started early on in my 20s as a traditional stockbroker. And after the dot com, boom and bust of the 90s, I realized I had to find better ways for not only myself but for my clients. So it’s slowly evolved over the years into this strategy that we have now. That’s just an evolution of trying to find safe, predictable ways to make money and cash flow, cash flow, cash flow.
CORWYN:
So Dan, look, you are a guru and I can appreciate that you don’t like the quote unquote, as some people take their hand and refile and pat themselves on the back, then what you do, you just saw him giving good information, and working to try to help people but you’re a financial guru, you personal finance, by investing strategies, leverage, all this kind of stuff. You are now served as a stockbroker. And now you are a financial advisor, is that correct?
DAN:
Yeah, and I use the term financial advisor very loosely to because I’ve tried to stay away from what I would refer to as traditional financial advisory because I don’t think it works, just throwing money in a 401k, crossing your fingers and hope you’re going to be okay. It just doesn’t make any sense. After the first 15 years of doing this, I really went on a search after that dot com boom and bust. And what I ran into, in maybe some people have heard of it is called Infinite Banking, which is, to me a good start. And I hung around with Nelson Nash for quite a while the guy who wrote the first book on it, but I realized it was missing something. And it was missing the leverage into cash flow assets. By the way, infinite banking is a way to build your wealth inside of a life insurance policy to keep it safe, predictable and tax free. But then you want to use that life insurance policy to leverage into other assets. So we packed the policies, and then we get into real estate, equipment leasing, we’re actually looking into Horwath. Now, just anything that’ll produce cash flow, and if it can hand hand us some tax advantages at the same time, we’re all about it.
CORWYN:
I love the concept of infinite banking. It makes perfect sense. It’s almost a no brainer. So if you don’t mind for our listeners, what is that concept of infinite banking?
DAN:
So the concept started with this theory that you’re going to pay a lot of interest to the bank. So if you become your own bank, all that interest could be recaptured and put back into your pocket. So as an example, let’s say I save and save and save inside of my life insurance policy, and I need a new car. So what Infinite Banking would say is borrow the money from the policy, go get the car, pay cash for the car, obviously, and then pay yourself back like you would the bank. But now the interest is coming back to you, rather than to the bank. And it’s not a bad concept. But I don’t know many people get too wealthy buying cars. So what you want to do get the funds that you need, then you can go on the hunt for your real estate or whatever. But then, typically, what we’ll do is our clients will throw in as much as they can get those policies built up. And then we have a couple of different ways where we can get involved in real estate. For instance, just a couple of months ago, I bought a student housing complex at Texas a&m, getting involved in those kinds of things are just, it’s just cash flow, cash flow, cash flow, equipment, leasing is another one where we can get massive tax deductions and some cash flow, you could start out with smaller duplexes or triplexes, or even just single family homes. But the idea is if you get it from your life insurance policy, in other words, if you leverage your policy, you will actually get a better rate of return. So if I was expecting, let’s just say a 12%, rate of return outside of the policy, if I run those funds through the policy, first, I’m probably going to get a 14 or 15% rate of return and some additional tax advantages. So here’s some real neat concepts, if you can use life insurance as your leveraging asset to get into other cash flow assets as well.
CORWYN:
So for our listeners, I want to circle this back around with this concept. Nelson Nash wrote a book about it. And he gave an example in the book about a guy that he started a business. There’s a long trucker, and nobody had told him about this thing. And then when he figured it out, he used to go to the bank and borrow money to go buy new equipment and the trucks these trucks are a couple $100,000. And he got the concept, right. And now he started buying his truck himself. Okay, well, let me leverage my insurance policy, take a loan back from it, pay myself, which builds the value back up again, to use again in the future. And he got the first Trump’s done that way. And then he added on. So anybody who may be familiar with that book, this is a amazing strategy to leverage to get to the next level. So Dan, what even drove you to be a planner.
DAN:
So when I was 15 years old, I was driving around in the backseat of my dad’s car with him and his buddy, my dad never had any money, and he worked hard, but just never could get ahead to be sitting next to this guy who told him that month, he made $30,000 in the stock market. And I’m like, I’m 15 years old. I’m a landscaper, I’m shoveling dirt and putting in sprinklers for 250 an hour. And this guy just made 30,000 bucks a month, I quickly get in my head, just do a quick calculation. That’s two and a half years of me working to get there. And literally, I know that sounds funny. But at that age right then and there, I said somehow, someway, I got to be a stockbroker. And that’s was my pursuit, I finally got a bunch of companies to least interview me. A one said, Hey, if you pass these tests, we’ll give you a shot. Luckily, I passed them. They gave me a shot. I worked so hard. I could outwork anybody within 18 months, I was the number one producer there. And I ended up saying, but you know what, I think I could do this better on my own. So I left the big firms, I opened my own. I had five offices, 60 reps, I just went crazy. But every time we would make money for five or six, seven years, we would turn around and have a 20 – 30 – 40% drop in the market. And then he’s just starting over again. And it was just really frustrating. And it’s not that I don’t still like stocks. I still dabble in it myself personally, but it’s not this foundation. That’s going to give you the retirement assets and things like that. So that’s when I went on the quest to set Okay, what else can I do out there? And of course, life insurance as a stockbroker was really boring. There’s no way I was even going to look at that. And then literally, a guy handed me Nelson’s book one day, I read through it, I said, Okay, there’s some good concepts here. I actually called up Nelson. We started talking. I ended up like I say, traveling with him for a bit before he passed away and really liked that concept. But the one that you pointed out where the business owner did it with logging trucks. See now that makes perfect sense because he’s gonna get a 179 deduction for the truck. He bought huge tax savings, and then pulling the money right from his own pocket so to speak, to put it right back in left pocket, right pocket kind of stuff. So that makes perfect sense. But for Ma and Pa who were going to go out and buy a new Subaru or whatever they like, it didn’t make a lot of sense to me because that car was going to depreciate in value, there was no tax advantages. So that’s when I started saying, well, let’s leverage these policies into other assets that give us cash flow, tax advantages, appreciation, real estate’s a natural one. But not everybody has the funds to go out and do a real estate purchase from the start. So building up the policy first, was a good way to get their first 5 – 10 – 20 – 50 $100,000, whatever they needed to go get into real estate. And then we found a few other little things that you can do early on, with smaller amounts of money. And it’s just blossomed and grown from there.
CORWYN:
So you wrote a book, if you don’t mind, Dan, what’s the name of that book.
DAN:
So I’ve actually wrote four books, the first one was called The Banking Effect. And it was taking the Infinite Banking concept and teaching it a little deeper. But my most recent book is called The Four Keys to Building Weatlh. And I wanted to write something that took less than two hours to read, that are simple concepts that anybody could implement soon as they shut the cover. And they’re just real simple. It’s time, compounding, leverage and tax advantages. When you combine those four key elements. You can’t help but become well off and wealthy and as wealthy as you want to be. So we teach how to take those concepts, implement them today, and you’re well on your way.
CORWYN:
So you have been like on the circuit, so to speak, meaning you’ve been on national television, interviewed in all these places, and spaces, and been sharing this information for some time. So how is this being received?
DAN:
It’s really fun. So I have a YouTube channel. And that’s where I get most of my attention, so to speak. But it’s funny, because people will call me up and say, Am I really talking to Dan Thompson? And I get laughing because I’m just a regular guy, right? But no, they’ll say, I’ve been binging on your videos, and I just been anxious to talk to you. So I would say it’s very well received. And again, there’s simple concepts to implement. We’re not talking about some crazy futures strategy mixed with crypto, and it’s just real simple, safe, keep your money safe and protected. And then let’s look for some opportunities to work that same dollar two or three or four times.
CORWYN:
I know, this is a question that you probably weren’t prepared for, in what you’re doing. What do you hope to accomplish to impact people with this information?
DAN:
Actually, totally prepared for that question, because we get it asked all the time. And it’s funny because my partner and I think if we don’t have a trillion dollars, working this process, and this strategy before we die, that we failed, that’s our mission is we want everybody from the person who can save a few bucks a month to the multi multi millionaire who starts out with five or 10 million, we want them everywhere in between. And like I say, we’re our mission is just to help as many people see how attainable it can be to be wealthy, and to have the income and the cash flow that you want to enjoy your life. It’s just not that hard. You just need to do a few things right?
CORWYN:
Or do a few things differently. I like that. And Dan, thank you for that. Because we really focus here on this show about trying to make this information digestible. But we’re also getting over the hurdle of really making it an attainable for people. So things that they can grasp, they can reach out. So obviously, I want to make sure I get your information in the show. And we’ll have it on our website. And for our listeners, guys in our podcasts, we go to our website, all that information for Dan will be there so you can reach out to him. Where can people find you? First of all, website, phone number, whatever information you want to give.
DAN:
Yeah I’d say the easiest places on YouTube, I’m just under Wise Money Tools. But I’m on Facebook, TikTok, Instagram or Twitter. Under Wise Money Dan, or Wise Money Tools, one of the two you can easily find me. Website is just wismoneytools.com. And the email is Dan@wise moneytools.com. So yeah, reach out, ask any kind of questions you have jump on YouTube, we’re going to be dividing up some of our videos into kind of mini courses, because I have over 600 videos out there. And sometimes it’s hard for people to know where to start. So we’re gonna divide them up into here’s people just starting. Here’s some people who need to save taxes. Here’s some people that want to get into multifamily. And we’ll have a little bit more easy way so to speak, to go through the videos that make the most sense, based on where you’re currently at.
CORWYN:
So basically, you’re creating your own pathway to mastery. Yeah, I’ll start here. And we want to walk you through this. And when we get you here, you got to know something because
DAN:
it’s like right now if I say hey, let’s go buy multifamily All right, well, where are we going to come up with the eight or 10? Or $50? million? And how are we going to do this? So sometimes it’s easier to start at square one and say, well, let’s build our capital base first. And then let’s maybe start working with some other people, because maybe we can’t take it all down ourselves. We’ve got this massive client base, it’s always looking for opportunities, and sometimes we pull together to take advantage of them. There’s just some really easy step by step.
CORWYN:
Dan, if I ask you a question here, I call it my mind drop question. If you could go back to the say, the very beginning, what in your life? Would you have done differently, that you believe what have you, let’s say at that trillion that you speak of,
DAN:
oh, it’s, that’s an easy one, I would have avoided the first 15 years as a stockbroker, I would have somehow fell on Nelson natural here, I would have packed the policy in my younger 20s as much as I could, and then started doing exactly what we’re doing now sooner. And that is getting into equipment, leasing, and E-commerce and multifamily and all the real estate opportunities that come out there, I spent a lot of the first few years packing a 401K and an IRA. And I would have avoided that. And I would have kept that money outside of those jails. I call it a 401k Jail, because you can’t touch it. But I would have had that money in that capital available to me. Now, unfortunately, when I started in the 80s, there was no such thing as internet and YouTube and all that. So you really couldn’t learn much unless you just happen to know somebody, or you could go buy a book, right? But nowadays, oh my gosh, the vast amounts of knowledge that you can get spending 20 or 30 minutes a night on YouTube or somewhere. That’s why I put all my videos out there. Because I want to educate people as much as they can so that they don’t have to do the same thing that I did basically, waste 20 – 25 years of my career, I wouldn’t say was a waste because I learned something. But it’s just not as predictable and provable as what we’re doing now.
CORWYN:
I like that answer, Dan. I really do. Thank you. Thank you. Thank you for that. It has been an amazing show. Again, thank you so much for being here on the show. If you could leave anything else with our listeners today? What would that be?
DAN:
The biggest bill that most of us will pay in our lifetime is taxes. If I can just eliminate or reduce the majority of your taxes, I’ll almost accidentally create wealth for you. So when we combine that tax strategy with everything else, I call it accidental wealth, because you’re not throwing money into places that it doesn’t need to go you’re putting it to work for you. Whatever your tax bill is, if we can reduce that thing significantly, if not eliminated altogether. That’s huge. This has been awesome to be with you too. And I’m happy to come back so, let’s do it again.
CORWYN:
Awesome. I appreciate that. So for our listeners guys look we’ve had an amazing show. We’ve hopefully dropped some nuggets that have not only piqued your interest but trust that they have inspired you to consider something different because that’s what we want to do here want to help you grow. We want to help you start, build on and leave and for continuation a legacy for your generations yet-yet-yet-yet, and yet to come. All right. So guys, look, thank you so much for tuning in. Y’all know how I feel, y’all know what I say? Y’all know I always put the two of them things together. And I say it to you this way, which is I love you. I love you. I love you guys, and we gonna see you guys out there in those streets.
