401(k) Liquidity Crisis | How to Build Real Accessible Wealth

0:00Stop treating your capital like a casino and start building your warehouse of wealth. When you put your money in a savings account, a typical savings account, your money is stagnant. It's not in motion. Inflation is just gonna eat it alive. A warehouse protects your inventory. It keeps it safe. It's accessible. And it's there when opportunity knocks. If all of your money is stuck in prison, like a 401k, you don't have a wealth warehouse. You have a penalty box. Let's fix that. So this is why IBC in dividend paying all life insurance is the vehicle, the practice it just works. This is why we build that storehouse first. So it doesn't matter what the stock market is doing, what the S&P is doing, the dial, the NASDAQ, it doesn't matter. There's liquidity without liquidation that money needs to be somewhere where it's in motion, where it's earning, even while you're using it at the same time. Right, every four to five years on average, there's a dip in the market or a market crash of some sort, right? What happens to your cash value in your policies when that happens?

1:02Well, the beauty is a whole life insurance is non-market correlated. So it doesn't matter what the stock market is doing, what the S&P is doing, the dial, the NASDAQ, it doesn't matter. Your cash value is little gonna increase in value every single day of the year. Yep, every day. That's great. So I would encourage people, you know, we're at the beginning of a new year. This is often the time when people try to reevaluate what they're doing. Maybe look over the last year, over the last year and say, from where I was last January to this January, how much progress have I made? How much progress did I expect it to make and how much did I actually make? You know, over time with compound interest, right? Every year, you should be making more than you made the year before. That's not always the case. Unless you have, you know, properly designed whole life insurance policies where what I love to do, I started doing this and maybe this is a, maybe this is a tool

2:04we'll put together and give out to everybody, create this to share with you all, but I created my own spreadsheet where I can track my policies all 15 of them. I know exactly, you know, and I updated every couple months. I don't do it weekly or daily or anything like that. Just every couple months, I'll go in there, create a new tab and look at, where's my cash value? You know, how much more PUA can I pay? How much death benefit do I have now? Because that cash value and death benefit are going up, right? So every year and it's amazing how the further along I get in my policies, the quicker that growth becomes, the bigger that delta becomes every time I look at it, it kind of blows my mind. Maybe I could do a review, because I started track and I think like last January. And I could do a review from January through December and tell everybody the growth on that. So I'll look into doing that, but that was eye opening for me and everybody should be doing the same thing with their finances. Yeah, absolutely. Especially those like, you have those three policies

3:06that you bought a long time ago, which are very mature now. And those are throwing off a buck 50 or maybe even close to $2 of cash value for every dollar and premium that you're paying on them. And the only wish, if you go back in time and make more money, you could make those premiums bigger. That'd be your only wish today is that those premiums were a hundred times larger than they actually are. Yeah, absolutely. Now you got to start where you're at, though. So we're not going to tell somebody start bigger than what you can do, right? And you don't have to put, you know, talk too many people. Yeah, you don't have to talk too many people off the ledge. I don't want you coming back six months from now saying, man, I need another policy. Like, great, I'll do that for you. But if you would have done more in the first policy, you know, you'd be even farther ahead right now, right? Yeah. So one of the great things about this being a non-market correlated asset doesn't matter what the market's doing. Some people like to wait, you know, when the market dips, everybody becomes a pessimist.

4:08And unfortunately, a lot of people then sell. They sell low, right? And get out of it. And then they interrupt their compounding, interrupt their growth, which is why really, you know, according to some of the research we did, the average S&P 500 returns a is 10%. The average mutual fund investor is more like four to 5%. Because people are not willing to, to just weather the storm and let time take care of it. So we're not saying putting money in the stock market is bad. You should be diversified and you can put money there if you got a 401K and your employer does a match, great. A lot of you listening are pilots and your airline funds a 401K for you whether you put a dollar into it or not, great. You know, I'm not gonna turn that down. But having something that's not correlated to the market, I tell you the piece of mind, I see the market dropping and I'm like, well, if I have anything in the market, that's a bummer. I just got to write it out, let it come back. And luckily, I've got capital available that is going up every single day,

5:09even if the market's going down and I have access to it, so I can weather the storm, right? You can weather that bad weather at all. Yeah, in the industry, we call that sequence of returns risk. You've addressed that, right? By storing the bulk of your capital in a non-stock market correlated asset. So that when the market dips, you don't have to worry about it. If you need, see what we see though, right? Is people need money. They forget this is overlooked in the financial, the conventional financial planning model is it is overlooked that people need cash. They need capital, they need money to do things right now, not when they're 59 and a half. They've got tuition, they want to build a pool, they want to do this, they want to do that, whatever, they need money to do that. And shame on them, right? I need to liquidate my mutual funds, or I need to liquidate some of my brokerage account so that I can go build that pool. Well, you just permanently wiped out all the growth

6:10that you spent the last 15, 20 years building in that particular vehicle, right? If you're using the strategy of IBC, whole life insurance, there is no liquidation. The money never stops growing and that is the key difference. You said something that's great. There's liquidity without liquidation. Where else can you get that? Without jumping through a bunch of hoops, filling out a bunch of paperwork and requesting permission like the equity in your home, right? With these policies, you've got liquidity without liquidation because you're not actually spending your own money. Your cash value continues to compound, continues to grow uninterrupted. If you're using the appropriate company to do so, right? Hey, I'm Dave. And I'm Paul. And this is the Wealth Warehouse podcast. So go check out in the show notes,

7:11the link to our website, the WealthWealth Warehousepodcast.com. We've got a bunch of great resources on there. You can watch Dave's little video that's very handy. And do not schedule a call with us unless you've read Nelson's book, which if you're watching us on YouTube, it's right there. So read becoming your own banker, maybe some other books in IBC, schedule a call with us would be more than happy to talk with him. Absolutely. And until next time, control your capital. Or somebody else will.