In this episode of The Tactical Empire with Jeff Smith, Jeff is joined by Shawn Rider to discuss strategies for achieving financial independence and building wealth. They delve into the Infinite Banking Concept (IBC), how it has changed their lives, and its benefits over traditional banking and investment methods. They emphasize how IBC can be used for various financial needs, such as real estate investments, debt reduction, and emergency funds. They also promote their upcoming free IBC 101 webinar on December 5th, which will explain the basics of IBC and how it can challenge conventional financial norms. The episode highlights the significance of financial education and the importance of setting up a resilient financial system.
In this episode of The Tactical Empire, host Jeff Smith is joined by Shawn Rider to discuss strategies for achieving financial freedom through the Infinite Banking Concept (IBC). They touch on lifestyle habits, leveraging IBC for various financial needs, and its potential to replace traditional banking systems. Sean shares personal experiences on using IBC for real estate, debt reduction, and business investments. The episode invites listeners to join a free IBC 101 webinar on December 5th for a comprehensive understanding. They conclude by emphasizing the long-term benefits and financial freedom offered by IBC.
00:00 Introduction to Tactical Empire
00:30 Meet Shawn Rider
00:36 Daily Habits and New Beginnings
01:38 Life in California and Thanksgiving Plans
02:38 Personal Pyramid of Wealth Free Course
03:06 Introduction to Infinite Banking Concept (IBC)
04:35 Benefits and Uses of IBC
07:44 Real-Life Applications of IBC
11:46 Debt Reduction Strategies
13:35 Setting Up Your Financial Future
15:49 Managing Property Taxes with IBC
17:12 Conclusion and Webinar Invitation
[00:00:00] How do you find the will to fight back against the world that wants to keep you sedated, averaging, stuck in place? Join us for the tools and strategies you need to create a life of abundance, discipline, and high achievement. This is the Tactical Empire with Jeff Smith.
Jeff: Welcome to another episode of the Tactical Empire. Today, I'm joined by Sean Ryder. What's up, my man? How are you?
Oh, I can't complain. It's a good start to the week. Got my Daily habits checked off the list. Mondays are good. Mondays can be busy. Cause I try not to do too much work on the weekend. So a little bit, you know, a couple of emails pile up a couple of this, that, or the other, but, uh, man, it's a good, it's a good day.
I wore my new branded bills, hat, bright red with a silicone American flag on it. It's awesome. I don't have it on my head right now, [00:01:00] but I think I've worn it in another episode or two. Uh, yeah, people, people look at you when you walk out in public with a bright red hat on. And they, and you have a hat, you have it, you have it backwards.
So they can't see what it says until you walk by them. And then they realize it's American flag. But I never knew when I never, I never knew that, uh, representing an American flag could, uh, say so much about yourself to someone else.
Jeff: Yeah. Yeah, it does. It does. You're a Patriot. I like that. I like that.
It's funny, everyone's thinking about hats nowadays.
So you can't even like judge a book by its cover anymore. Like you could the past four years, but my man, how are you guys? I saw in the inner circle, you're going to try and, uh, hike Joshua trees. So that tells me you're still out in the old state of California.
Jeff: Yes. Yes. Uh, our time here is limited.
Thankfully, um, we have about a little less than a week here, but we've been in Palm Springs. The weather's been good, so I can give it, A, [00:02:00] a thumbs up from the weather standpoint, but, uh, the rest of it has been, as you would expect, California's weird. And, uh, so we are ready to, ready to head back to Arizona and get ready for Thanksgiving.
Thanksgiving in a hundred degree weather, maybe. That'll be fun. Well, that's probably no different.
Jeff: Hopefully. That's what we're hoping for. We like it hot.
We got a good, we got a little mild, mild winter so far. It's just, you know, it's fluctuated between 40 and I think it's 66 today. So have the windows cracked open a little bit, but my man, uh, last episode, I rode solo real quick.
So I could, uh, release the personal pyramid of wealth free course. So anyone that did not listen to that episode, go back. We'll have a link in the bio. We're giving away our personal pyramid of wealth free course. To the people, um, that is self guided. It's got information in there for you to get started.
Uh, it's not quite to the level of our [00:03:00] seven levels of financial freedom. That is a separate course. And that is a program that we put all of the men through in the inner. Circle, but that's not the only thing we're giving away for free, Jeff on December 5th at noon Eastern, I will be running an IBC one on one webinar for anyone, what is
Jeff: IBC?
I exactly. IBC is the infinite banking concept. So the infinite banking concept one on one course, I'm going to just start with the bare bones basics and work people through, um, what it is, what the product is, what the concept is. And how it could be relevant to anyone's life, not just, uh, high achievers, investors, or business owners.
And, uh, you know, just challenge a few personal financial norms, so to speak, and turn those into myths and, you know, hopefully open the minds of people on why we use this product and why we believe in this concept. Uh, but without, you know, without giving away the whole [00:04:00] webinar, I kind of want to talk about IBC a little bit today and just talk about, uh, how it's changed our lives or how we've utilized it.
Um, anyone that's been a part of this, uh, podcast or community, it's been a while since we talked about it. Um, we're not going to explain it in depth today, but we will tell you why we use it and what it's challenged our thinking on. So, um, you know, if someone comes to you as like, well, Jeff, how have you utilized?
Jeff: Oh man, it's, it's literally the, the greatest product I've ever found for a base level, like financial savings account beyond like a high yield checking account or something like that. If you take a high yield savings checking account and then you roll it into this. Particular banking system. Um, it's really afforded me a ton of opportunities as far as like, I don't know [00:05:00] about your personality or everybody's personality, but I don't like banks.
I don't like going through the underwriting process. I don't like, um, filling out the applications. I don't like any of it. Um, administration is like my nightmare. And, uh, so for me. All the, all the benefits aside, like being able to go get my money. Like I had this, I had a big 401k when I was in the corporate world.
Right. And, and that was like all behind a paywall or whatever you want to call it. And it was in a vault and you couldn't touch it. And so what I've done with IBC is I've built a 401k essentially that I have access to and, uh, it's changed everything for us and our family.
Yeah. I mean, for me, when I first.
You know, got exposed to it via you, uh, the bare minimum thing was, Oh, I don't have to worry about volatility and returns. So when you stay, it's kind of like the best high yield savings account. Um, [00:06:00] you know, no one could change that, right? The dividends change, but the guaranteed rate of interest, uh, bare minimum that we get stays the same.
And so, uh, when I was working with, uh, my first. Like insurance agent, they sent me like this mini paragraph and it was, you know, It was called the, the utility of guarantees. And it was a very well written way, uh, that connected with me. And it was like, look, when you have a guarantee, as opposed to volatility and averages, guarantees are real, averages are not real.
Uh, not only are you lose, not only are you going to lose Out on the times when the market is down and the stress that's associated with that, because people can say I'm a long term investor and I ride out the lows, it's still stressful. I mean, when I, I run businesses and I see clients 80 percent of the days out of the year, and when the market's down, they're talking about it, uh, and they're long term invested.
And so it's still right there at the forefront. So when you [00:07:00] remove. The stress from volatility and the other side of that coin was when you know you're getting a guaranteed rate of return, you can go do something else. You can focus on your main thing. And we've been talking about that a lot with the men in the group.
It's like, keep the main thing, the main thing. And whatever your other thing is, it's got to be simple and it's got to be repeatable. And I think using higher like cash value as your foundation of your cashflow system, uh, covers those two things. It keeps you focused on whatever your main thing is and it, uh, decreases the amount of stress that Uh, what, what, what things have you used your IBC for mainly?
Jeff: Well, to buy real estate, I, I've used it on a lot of real estate transactions. I've used it on other investments. Uh, I've, I've lent out money using it. Um, and so mostly other [00:08:00] investments to cycle the money. And then I bought vehicles with it as, as well. I've, I've paid off vehicles. Ow. I bought vehicles and then paid them off, if you will.
Um, and what else have we used it for? I'm trying to think. Uh, lines of credit. If you, like, for businesses, like startup stuff, I did that wholesaling business early in the year. I funded it with that. Um, and then paid back the money through the proceeds of the, the business. And so, I think it's really powerful from that.
If you're gonna, if you're gonna, Invest in something that produces income. Um, they're, they're beautiful for that. Obviously debt reduction for anybody that's got unsecured debt or anything like that. It's also a wonderful tool for that. Um, I kind of consider it like a freight train for your money. It just moves slow and steady, but there's no, there's no slowing it down.
So like you're setting this thing and forgetting it [00:09:00] for the next 40 years. And you and I haven't been involved in it. That long, let's say like I'm probably, I don't know, two or three years ahead of you. That's it in it. Um, cause I didn't even, I knew about it, but I didn't really start buying policies until 17, 16, 16, 17, something like that.
What I'm seeing now is, is even that much more, I'm that much more bullish on it because now we're getting to the maturity on a lot of it. Cause I mean, if you listen to these people in the first three years of IBC, like it doesn't have like nearly as much fruit as it's going to produce, but if you let it get to 7, 10, 15 years old, then you start really seeing the compounding effect of it.
And so like, we're kind of, we're kind of reaching that level of maturity with regards to some of our policies and, and it's [00:10:00] just that much more exciting to me.
Yeah. I mean, I, my oldest policy, it's actually due in 30 days. It's one on me and one on my wife. It was the first policies that, that we set up. Um, it's due in the middle of December and it's year four.
But last year when we moved, when we paid the premium, which to most people, it sounds like an expense. But when we paid the premium, the same, just shy, it was like 157 less. And we're talking about quite a few thousands of dollars that we paid in premiums. It was like 150 less. So in my mind, it wasn't an expense, it was, I moved an asset of cash from a bank into an asset of cash value in a life insurance company.
Not only did my cash value go up by pretty much the same amount of money that I paid, the death benefit went up by the exact amount that I paid. So, yeah, it's like, you know. Like I'm not, I'm not losing financially. And, and the cool thing is, is like, you're right. The, the, [00:11:00] the older I get, the older these products and policies get, the better the return.
And the return is basically overnight. So to cruise this interest, it's earning. And I pay my premium and then I get my interest and dividends deposited. So like in the next three, as you're saying, when I'm, when I get to where you are and I pay a premium and I literally will see more money show up 48 hours later in my account.
It's like, what other product can you buy that 5, 7, 10 years in? And it's only going to get better from here, but I'm going to use 10 years because that's going to be here in a blink of an eye for everyone. What other product can you buy that 48 hours later, it's, it's gone? It's just, it's more than what you had, right?
Um, so I'm super, super excited about that. You did bring up, uh, debt reduction. Um, one thing that we see a lot of the guys come into the inner circle with is either personal credit card debt or business credit card debt. Um, and they may have an active interest rate on there and they're paying 19 to 23 percent, but they're also sitting on cash [00:12:00] because they've been told that they need emergency funds.
And so they start going through our course and they're like, okay, debt reduction or increasing my monthly cash flow. Hey, should I pay off this credit card? We're like, hey, hey, don't get too far ahead of yourself. Like, let's get your banking system set up. Let's take Let's take that debt from a 20 percent interest rate down to a 5.
5 percent interest rate and let the dust settle and then we'll see where we're at because we want people to get their, their banking system started. If you don't understand what I'm talking about, take the course on December 5th because I will explain this. This is not what the episode is for. This is for the people that kind of like just want to hear how you and I use it.
They may already know what IBC is. But for me personally, because I'm involved in like some partnerships right now where like I could wake up one day and my partner's like, Hey, I need X amount of dollars wired to X, Y, Z, so we can buy this property or finish this build out, uh, this renovation, even though taking a loan from a life insurance company is 24 to 48 hours, like I need to wire money that morning.
So what I'll do is I'll pull a line of credit, usually on my home [00:13:00] equity line of credit, which is eight and a half, 9 percent interest. I'll transfer that money right now and then I'll wait a couple of days and I'll pull a life insurance loan and I'll just reduce that debt by three and a half percent to a five, five and a half percent.
It's like, Oh, you're three. I'm saving three and a half percent. No, I'm saving like 60, like 33 percent of what that, that was eight and a half down the five or 33%, whatever. Um, so I like to play those games with me. It's like, what other product do I have access to that money that quickly? So I'm super, super excited about that.
I know that this is something that you're constantly expanding your system. And, uh, so do you want to speak to the people on the importance of once you have this set up, the, maybe the freedom it's given you to not necessarily get distracted through diversification? And you mentioned about the 401k and parking your money, but that's one product.
Uh, how many we see come into our, our community? And they have literally seven different financial products that serve [00:14:00] seven different purposes. And what they need to understand is like, that's getting you nowhere fast at all.
Jeff: Yeah, I, I mean, for, for the minds that work like that, I totally understand. Like, if you need different buckets for everything, I would, I mean, this is my personal recommendation. I would buy different policies for them. I would, I would buy your, your family's vehicle account. And like, put money back for your next vehicle in that account and earmark it for that.
If, if you're a 529 person and you're investing for your kid's college, the best thing you can possibly do is either buy them a policy or buy another policy on your own and start allocating that same amount of money to it. Um, because then you'll have access to it with none of the restrictions when they're 18 years old and ready to go to college, you can do whatever you want, if you wanted to finance a business for them, if life changed for whatever reason, in whatever direction, you could support them in the way you wanted to.[00:15:00]
Um, I, I think that that's more prudent as a parent of, of four people, um, like for me, I'm saving for my kids to do whatever should come up, right? And then like, at the end of the day, I've talked about it in the group a few times, but I would like to. Either gift them a house or at least the down payment for their first house when they get married.
So like, that's all part of it, but I'm able to cycle that money back through. So when they're 18, I can use it for whatever they want. And when they're 28, I can roll it back up again and use it for the next thing that I want to gift them, right? You just have all that flexibility and option with it. And so like, I think it's a really powerful tool for your future as well.
And for the, the brains that work like that, that needs seven different buckets, like it, you can do it that way as well.
Yeah. I want to go back to, um, my policies being due. The extension of that is, uh, these are my two biggest policies doing the next 30 days. But the cool part is, is that my, my property [00:16:00] taxes on my commercial building, the second installment.
Are due, uh, 10 days prior to my premium being due. So instead of shelling out and I'm going to be open with the people, like one installment payment is 16, 950. And so instead of shelling out almost 17, 000 of cash, what I'm going to do is pay my premiums early because I can pay them 20, 30 days out. I'm going to pay my premiums early.
Increase my cash value, which increases my loanable amount. I'll pull a loan at five and a half percent, pay the city their taxes. And then instead of setting money aside for the next six months, I'll pay down that loan with tax money, the future revenues of the building with tax money. Because all these people are setting up tax bank accounts.
Cause that's what profit first told them. It's a great system, but you're still using bank account. I'm going to set that money aside by paying down my loan. So when next year's first installment comes. Of 17, 000, I [00:17:00] won't use future dollars to do that. I'll use current paid out, uh, cash value and the paid out loan.
So I'm just psyched from the same dollars while my money continues to grow. Again, ladies and gentlemen. Yes. I apologize if this is the first episode that you heard of us talking about IDC and you're completely lost. That's the purpose of this episode. This episode is for the people to know what we're doing with it.
Spark your interest, get into our, our IBC 101 course on December 5th. I promise you, I will explain it in elementary terms, first grade level, step by step on what you need to know about the product and how you can use the concept to change your life because it has obviously changed Jeff and I's life.
Jeff, do you want to wrap it up for the people as opposed to just telling them to get in the webinar?
Jeff: Yeah, the web, the webinars free guys. So like, what can it hurt? Um, sign up for it. Uh, we'll, we'll include the link in the show notes. Uh, but if you don't know [00:18:00] about this product and, and the, the thing that we always get now that I'm in my forties is like people ask if it's too late to do it.
Um, it's never too late to do it because of the cashflow advantages that you have from it. And the ability to, the second you put a dollar in there, that dollar's never exposed to taxes again in your entire life. And so it's, I don't want to say a tax shelter and get the fucking feds after me or something like that, but like it, it does have tax benefits, um, from that standpoint as well.
And then from a cashflow standpoint, it. I know Sean doesn't want to go deep down the rabbit hole. Excellent job on your property taxes and explaining that. I mean, I, I think that's a more nuanced thing for sure. Um, the idea is to put the money in and then to pull the money out and use it immediately on your ongoing expenses.
Whatever those may be. A lot of us have one time expenses that are property taxes, insurance payments, things like [00:19:00] that. And, uh, But while, while saving into this asset class as well, so you definitely should be there. Sean's going to explain it well, I'm not going to confuse things. And so, uh, you've got that benefit as well.
I'm not going to hop in there and give you like the granularity of having owned the policies for a decade and, uh, like what you can do with them. Cause it's overwhelming. I definitely wouldn't miss this, but I personally think this is the foundational asset class in everybody's like money pyramid. Like if you want to go invest in crypto, if you want to go buy real estate, if you want to do all this other stuff, if you, if you foundationally funnel the money in here as level one or level two, whatever level you're talking about, if you're doing the seven levels, but, um, then.
Then you take it and you would use it again, which you have the ability to do that and buy another asset with it and use that assets proceeds to pay it back. It's a [00:20:00] cycle that you cannot stop and a flywheel that will not stop expanding either. So it's, it's just incredibly powerful for your future. And, uh, we all need to be like looking into financial tools like this.
So
Holy Grail, I mean, to me, it's the Holy Grail of financial products, the Holy Grail of financial tools. And that's what it is. It's a tool. It's something that you can use to make everything else in your life from a financial perspective, better. And I have yet, I have yet to meet one person that has truly owned these products for a long period of time to say that, that, that it, it did not turn out to be the best product that they had their money in, uh, because when you're 20, 30, 40 years down the road, and that money's been chugging along like a freight train and the compound interest curve, it's been Again, this is the difference between real returns and average returns.
You had nothing chipping away at that money, literally nothing. Not a down year, no taxes along the [00:21:00] way, and so that compound interest curve that we all were taught, but we weren't taught that that's not how real compound interest curves look on all the other products that Wall Street and the banks want you to put your money in, this is a true compound interest curve.
You will, or future self, will greatly appreciate that your current self set this system up. Whatever questions you have, we can answer them. That's when we'll get granular about how it can be leveraged in your life. But, like we said, the course is free. The link is in the show notes. We'd love to see all of you there.
And, uh, if you can't make it, we'll send out the recording to everyone that registers. So please register. Ciao. Send the people out
Jeff: right on guys. I hope this was a little helpful. I know we scratched the surface. It was a little cryptic, but, uh, hop in to the webinar with Sean. The next few years are going to be gangbuster.
Like I talked about on the last episode, I'm telling you now that you, your financial education is up to you. And, uh, it's, it's imperative that [00:22:00] you. Work on these skills and figure out where to put your money to keep your family safe and to also provide you with a higher quality of life. So take advantage of this with us.
Okay. Have a great week, kick ass, we'll see you next week, join us in the Facebook community in the Tactical Empire, it's free, and if you have any questions let us know.