Tax-Free Retirement

In this weeks #tbt podcast, we dive into the third pillar of Infinite Banking. It is probably something that all of us have pondered recently, considering the volatility of the markets with its roller coaster highs and lows. Yes, I am speaking of retirement. That formidable ambition that can keep us up at night wondering if we’ll have enough money or when is the right time to start taking withdrawals? What if you could have your money in a vehicle that isn’t tied to the market ups and downs? What if your money could be withdrawn tax-free? What if you could use and grow your money on your own terms until you choose to retire? Listen to this short, but informative, episode to hear how Nelson taught us a better way. A way in which the performance of our money isn’t reliant upon someone or something other than ourselves.







Chris Bay:Welcome to the Life Success Legacy podcast. My name is Chris Bay and I’m joined today with the founder of Life Success & Legacy, Mike Everett. Hey Mike, we’ve been talking about the four areas that Infinite Banking can address for people. First was eliminating debt rapidly, typically in 3 to 8 years, by turning the wind current. Our last podcast we did, we talked about how to finance everything in your life and applying economic value added or EVA, or as Nelson says, “Don’t steal the peas.”

Chris Bay:

In this next conversation, what I’d like to talk about that I think is going to be really interesting to people, and that is how to get tax-free retirement. Most of us have come up during a time period where we have been told to put our money into certain kinds of tax qualified plans or markets or things like that. So what I’d like for you to do is kind of describe the landscape of what most people know about. Most of the noise that we hear out there about retirement. Let’s talk about that first. And then what we want to do is transition to what are alternatives for that.

Mike Everett:

Okay. So here’s the way I did things before I learned about the Infinite Banking concept. I got taught to put my money aside into a 401(k), an IRA, a mutual fund, and I was going to do this systematically over a time period.

Chris Bay:

Mm-hmm (affirmative).

Mike Everett:

You start out when you’re 25 to 35 years old and you start putting your money aside. Now, you’re supposed to do it systematically, and you’re going to do it tax-free right now, is that correct?

Chris Bay:

That is correct.

Mike Everett:

Okay. So you’re going to think through this thing with a customer or a client and help them understand why these things do or do not work. So one of the questions that I ask right off the bat is, are income tax is going to go up or down?

Chris Bay:

And if you look historically, the answer is yes.

Mike Everett:

That’s correct.

Chris Bay:

It’s going to go up.

Mike Everett:

The second question I would ask somebody is, number two, the money that you have in your checking account or under your mattress, is it worth more today or is it worth more tomorrow?

Chris Bay:

Today due to inflation.

Mike Everett:

That’s correct. Well, they keep cranking out dollars in the basement of the White House. And so the dollars are going down. Well, number three, when thinking of income taxes, you want to pay on the seed, the little amount, or do you want to pay on the harvest, the big amount?

Chris Bay:

I’d rather pay on the little amount.

Mike Everett:

But yet everything that we’ve been taught to do with our money, we take money, we set it aside income tax-free into a retirement plan, an IRA, a mutual fund, and it grows income tax-free. And then 20 or 30 years from now is when we start pulling money out.