Episode 523

From Average Returns to Infinite Wealth: Taking Control of Your Finances w/ Jim Oliver

Jim Oliver started his career as a fee-based and full-service financial advisor after graduating from college. He spent 15 years in this role, providing financial advice and acting as a financial babysitter for his clients. One day, he received a notification from one of the platforms he was using, claiming that his clients had earned 9.38% returns over a certain period. However, upon further investigation, Jim realized that despite having $700,000,000 under management, his own investments hadn't seen the same increase. He meticulously analyzed the numbers, factoring in fees, expenses, and taxes, and discovered that his actual returns were only around 4%. This revelation sparked a realization within Jim, leading him to question the traditional financial advisory model.

Connect with Jim Oliver: https://community.createtailwind.com/

Topics & Bullets:

Introduction to Infinite Banking

  • Definition of infinite banking as using a whole life insurance policy as a banking tool
  • Explanation of how the policy grows guaranteed every day and is designed for cash value, not just death benefit
  • Comparison to how banks and corporations use life insurance because the money inside is never taxed
  • Explanation of how mutual insurance companies are owned by policy owners, allowing for loans up to 100% of the cash value
  • Introduction to interest-only loans taken from the insurance company, using other people's money (OPM)
  • Explanation of how the borrowed money is then invested in real estate, with cash flow returning to the insurance contract
  • Emphasis on how over time, the cash flow increases, allowing for continued investments in real estate
  • Highlighting the benefits of real estate investments, including growth, cash flow, and a tax-free death benefit for heirs
  • Importance of leveraging the insurance contract to maximize real estate investments

Success Stories with Infinite Banking

  • Mention of a business owner who went from no real estate to 250 units using infinite banking
  • Example of a couple who doubled their money using seller financing and insurance company loans

Limitations of 401(k)s and Roth Options

  • Discussion on the limitations and concerns of relying solely on 401(k)s and Roth options for retirement
  • Expression of concerns about government control over retirement accounts and potential asset seizure

Introduction to Jim Oliver's Journey with Infinite Banking

  • Personal experience of being introduced to the infinite banking concept through a friend and attending a seminar
  • Emphasis on the value of studying and explaining concepts to gain a better understanding

Exploring the Banking System and Understanding Infinite Banking

  • Basic explanation of how banking works and how depositors and borrowers contribute to the profitability of banks
  • Highlighting the discrepancy between the interest income received by banks and the interest paid to depositors
  • Introduction to the concept of infinite banking, which involves becoming all three entities (depositor, owner of the bank, and borrower) to control and benefit from the banking system

Jim Oliver's Book and Community

  • Announcement of Jim Oliver's upcoming book release on November 14th
  • Encouragement to join Jim Oliver's community
  • Offer to provide a free copy of either his book "Make Bank Without the Bank" or Nelson's book "Becoming Your Own Banker"

Jim Oliver's Business Acquisition

  • Discussion of Jim Oliver's recent business acquisition of an electronics refurbishment company
  • Explanation of the terms of the deal, including an earn-out basis and revenue increase percentage going to the previous owners
  • Details of finding profit in old sound bars and the business becoming profitable and making multiple six figures

Challenges and Learnings

  • Mention of potential challenges, including not having immediate access to the full invested amount and not knowing how to best use the money in the insurance contract
  • Reflection on the importance of self-education and the lessons learned from Nelson Nash about financial independence and the dangers of dependency on Wall Street banks and the government



"You can invest 10,000 hours and become an expert or learn from those who have already made that investment." - Jack

About the Podcast

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Real Estate Investing with the REI Mastermind Network

About your host

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Jack Hoss

We gather amazing stories from leaders in Real Estate Investing. In each episode, our guests will tell you what they are doing that works, what they tried that failed, and best of all you'll learn actionable steps to take your real estate investing to the next level.