Tax Strategies Using Infinite Banking With Barry Brooksby
Barry has been involved in the financial and investment industry since 2001 and helped build a multi-million dollar real estate empire. The mix of real estate and financial planning experience has enabled him to see opportunities and business with more clarity and has enabled him to assist clients to increase their wealth and benefits while lowering their overall risk.
He is the Founder & CEO of Focus Wealth Group, specializing in wealth & protection strategies, tax-free money planning, and guaranteed retirement income planning. He is the co-author of the book, Tax-Free Money for Long-Term Care!, and is known as a financial coach and mentor to clients nationwide. Barry speaks on topics such as real estate investing, tax-free retirement, guaranteed income planning, Infinite Banking, and how to take your business online and go virtual.
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Brett:
I’m excited about our next guest. He’s at a great State of Utah, and he’s been involved in the financial and investment industry since 2001 is helped build a Multi-Million dollar real estate Empire, the mix of real estate and financial planning expertise has enabled him to see opportunities and businesses with more clarity and as enable him to assist clients and to increase their wealth and benefits while lowering their overall risk. He’s the founder and CEO of Focus Wealth Group specializing in wealth protection strategies, tax-free money planning, and guaranteed retirement income. He is the Co-Author of the book Tax-Free Money For Long-Term Care, and is known as a financial coach and mentor to clients nationwide, and so much more. Please welcome the show with me, Barry Brooksby. Barry, how are you doing?
Barry:
Doing well. Thank you, Brett, appreciate you having me.
Brett:
Excited to have you on the show and get to know you a little bit more, and we’re gonna be talking all things about tax strategies using infinite banking, but before we go there, Barry, for our listeners and for myself, would you give us a little bit more about your story and your current focus?
Barry:
21 years involved in the industry, and what I found initially was putting money into the traditional financial advice of Wall Street mutual funds, 401 Ks, it wasn’t working for me, and it wasn’t working for a lot of my clients as a financial planner, clients would come to me and say why aren’t I earning great returns? Or why am I losing money in the market, and it really caused me to look and find something better? I wanted guarantees, I wanted tax for use of money, I didn’t want the volatility and all of it, the market offers. I got into real estate very quickly, and then also coordinating real estate with these high cash value, infinite banking policies to grow money tax-free. I work with clients all through the country, and my life is much better because of it. I don’t have to worry about the volatility of the Wall Street investments or The Wall Street dollars. Frankly, I and my clients know what we’re going to have in retirement rather than hoping and crossing our fingers for some returns that, frankly, are unknown.
Brett:
We’ll dive into that here in a minute. I want to take one other step back, and I want to go back perhaps to your college or high school days, in the earlier days. I believe we’ve all been given certain gifts. Some people call these superpowers, some people call them strengths, and I believe that the God-given gifts they have given to us to be a blessing and help to others. I’m curious what are those one or two gifts that you believe you are given? How does that help how you help and bless people today?
Barry:
Thank you. Well, I’m a musician. My background is actually music. I’ve played guitar for over 35 years, I’ve got an album out there on iTunes.the gift of music I feel has been a God-given gift to me, I love to create and get out there and share my music with the world have another album coming out next year. But also, I find that I’m very passionate about helping other people. What I do in my world is a reduced commission type of product, and get asked from clients all across the country, why do I do it? Why not make more money and increase your revenue more? Frankly, I love to help people, and what I have found red is that when you help other people, you’re going to make more money along the way. Don’t chase the money. You want to chase helping people that’s really what I’ve learned in my practices The more people you help the better your life is going to be. Its karma you reap what you sow what comes around goes around. Those are gifts from God that we shouldn’t be taking for granted. We should be helping one another.
Brett:
Beautiful love that helping people passionate about helping people and then be having the musician in your the music gift of music in you to be able to create Is that a fair summary? Your summary? Now let’s dive into how outfits into tech strategies. Infinite banking, which is kind of cool. I love the creative background and the helping people part of it. What’s the number one secret to tech strategies using infinite banking, where should we start Barry?
Barry:
Let me start with a foundational background, most people saving and investing for their future retirement, whatever it might be, are following the model that wall street puts out there a 401K’s IRAs, everything that’s government-oriented, qualified plan. The problem that you see with those traditions, which by the way, most wealthy people don’t invest in those, they’re investing in real estate and their own business. But a lot of Americans invest in those qualified plans. The problem with the 401k and Ira, number one, is they are volatile, the market goes up, the market goes down, I’m reminded, obviously, of the crash of 2008, people lost 2030 40% of their portfolio, and it took over a decade for a lot of those people just to recover, to get back to even. The second problem is those investments are traditionally high fees, meaning a lot of the money or growth can be eroded from the fees that are being charged, and whether you make money or lose money, the money manager, the financial advisor, Wall Street, they’re still making money, and then the third biggest problem is its tax deferral, and I hear from CPAs, often that it’s tax savings, put money in a 401k or IRA, you’re getting tax savings. That isn’t true. It’s a tax deferral, what they’re doing is they’re kicking the tax can down the road to pay the tax later, and more than likely, they’ll be paying higher tax. There are many reasons for that. But chances are, they’ll be paying higher taxes compared to what they would be paying today. What I advise people is in a high cash value infinite banking plan, we avoid all the problems. Number one, you grow money guaranteed, you don’t have to worry about volatility, and you’re earning interest in dividends on an uninterrupted compound interest growth curve to the fees are about 10 times less than what you would pay in your 401k or IRA and three, it’s tax-free. Now, there are some things we have to do to keep it tax-free, and that’s my expertise to make sure people follow that plan. A properly structured plan, if done correctly, not only can use the money throughout your life, to invest in real estate, to buy other investments, or invest back into your business. But then in retirement, have built up a large bucket of tax-free money that you can then draw on as tax-free retirement income.
Brett:
Let me say caught that the number one secret infinite banking is understanding that wall street is not the best way with 401k IRAs and IRAs and qualified plans, one, because it’s really volatile, too, because of the high fees in threes, don’t inflate tax deferral. It’s not tax-free or more efficient and is likely to be higher tax in the future, and whereas this infinite banking structure strategy, you can grow money guaranteed, you can earn interest and dividends and it’s about 10% less in taxes, and then if properly structured, it can be tax-free. Is that a fair summary?
Barry:
10% less than the fees that you would pay in that type of plan compared to a qualified plan, and you are growing money tax-free? Yes.
Brett:
Let’s talk about that. What’s step number two? Once you see that that’s the challenge, and then what the goal is, what would be step two to set this up?
Barry:
We’re going to go, we always look at a client’s numbers. I want someone to see exactly how this plan is going to work for them. No plan is no two plans are exactly the same. I’m looking at what are your goals? Age health income? What do you want to achieve in the future? Do you have plans where you want to take policy loans early on, to go invest in real estate and use policy loans for down payments? What do you want to see as far as retirement dollars? Most people if they’re invested in qualified plans, and all their income in retirement is going to be either taxable or tax-deferred? I often asked this question, think of these three circles in your mind and these three circles would represent buckets of money, tax, deferred, taxable tax-free, which bucket do you like the most? 100% of the time, people told me tax-free, but the next question is telling Where’s most of your money? People answer nine out of 10 times tax-deferred there are taxable buckets as well like real estate and CDs etc. But most people want tax free, but when they look at their portfolio, Brett they have very little if any money in the tax free bucket, but it’s what they want. We go to work on designing a plan for them so they can see their own numbers.
Brett:
Let’s talk about that. Let’s say someone has a million in the bank, and it’s sitting there, it’s already you already either paid taxes, and that first scenario, and it’s sitting in savings, and they could put it into something that’s going to grow tax-free, perhaps into baking, something that could be like real estate, that does have some taxes, but you have some depreciation, you can offset it, but then you can also trade it tax-deferred. What would be the scenario in which you would say one versus the other? What would that look like? Why would one use one versus the other?
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