Bank On Yourself w/Mark Willis
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Episode Description
Welcome to the Freedom Point Real Estate podcast! In today's episode, Mark Willis shares his journey from three-figure debt to financial independence and describes an ideal financial strategy.
Mark Willis is a CERTIFIED FINANCIAL PLANNER™, host of the globally top 1.5% show Not Your Average Financial Podcast™, and a three-time #1 best-selling author. As the Founder of Lake Growth Financial Services in Chicago, Mark has spent over a decade helping clients take control of their financial futures with innovative, tax-efficient strategies. Mark's unique insights and proven expertise could bring immense value to your audience, offering fresh perspectives on financial planning, business growth, and personal wealth management.
CONNECT WITH MARK WILLIS!
Take Action Today: https://kickstartwithmark.com/
LinkedIn: https://www.linkedin.com/in/marklakegrowth/
Website: https://lakegrowth.com/
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CONNECT WITH JEREMY DYER!
Website: https://startingpointcapital.com/
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LinkedIn: https://www.linkedin.com/in/jeremydyer
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Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12
Summary
Tip #1: Question Traditional Retirement Strategies
“The truth is reality is the undefeated champion of all time, and if you want to fight reality, you're going to be on the wrong end of that fight.”
Mark highlights how traditional retirement strategies, such as 401(k) investments, may not align with reality, especially when considering the rising likelihood of tax increases in the future. By questioning the status quo and focusing on financial independence, listeners can better evaluate the long-term sustainability of their retirement plans. This mindset shift allows for a deeper exploration of alternatives like Bank on Yourself.
Tip #2: Diversify Beyond Stocks and Bonds
“90% of the portfolio of the average American is tied up in their home equity and their qualified retirement account that they can't touch."
This quote underscores the risk of over-concentrating wealth in retirement accounts, particularly those that limit access or are highly affected by market volatility. Diversification should include a mix of assets, such as whole life insurance, which allows flexibility and growth without being tethered to unpredictable markets. It’s about ensuring there are accessible and liquid assets outside traditional retirement accounts.
Tip #3: Understand the Impact of Taxes on Retirement Accounts
“When you put your money in a tax-deferred retirement plan, that word deferred means that taxes are coming eventually.”
Mark urges listeners to consider the future implications of tax-deferred accounts. Many individuals are unaware that tax deferrals only delay the inevitable—taxes will eventually need to be paid. This realization makes alternative strategies like whole life insurance appealing, as they can grow tax-free and be accessed without the looming threat of future taxation.
Tip #4: Combat Inflation by Increasing Your Own Money Supply
“The only thing we can do is increase our own money supply… increase the value you have in the marketplace.”
In a high inflationary environment, the strategy to combat inflation isn't just about saving more—it’s about making yourself more valuable in the marketplace. Mark suggests that individuals should seek ways to enhance their income capacity through skills development, entrepreneurial ventures, or value-added services, ensuring their financial wealth outpaces inflation over time.
Tip #5: Take Action to Protect and Grow Wealth
“Try something out... do something that's big enough for you to pay attention to but small enough that if it fails you it's not a complete disaster.”
One of the core principles Mark shares is taking actionable steps toward financial growth. Rather than being paralyzed by analysis, it’s important to start small, test different strategies, and make informed adjustments along the way. This approach helps build confidence and wealth without the fear of taking on excessive risk.
Tip #6: Whole Life Insurance as a Dual-Purpose Asset
“Whole life insurance is designed to be a cash savings alternative… it’s a substitute for liquid savings and insurance protection at the same time.”
Whole life insurance, when properly designed, becomes a powerful tool for both protection and growth. This dual-purpose asset allows you to have liquid savings that grow over time while offering the security of life insurance. It provides an inflation-resistant, tax-advantaged option that doesn’t rely on traditional financial markets.
Tip #7: Use Whole Life Insurance as Collateral
“When I borrow from my policy, it continues to grow and earn interest even on the capital I borrowed.”
By using whole life insurance as collateral, individuals can access liquidity without having to sell investments or incur taxes. The growth continues in the policy even as the funds are borrowed, allowing for more efficient wealth accumulation. This strategy offers flexibility and can be used for everything from real estate investments to personal loans.
Tip #8: The Importance of Financial Planning with a Trusted Professional
“It’s very important you work with someone who is certified and authorized by Bank on Yourself… there’s a lot of nicknames out there, but only Bank on Yourself has consumer protection.”
Mark emphasizes the need for professional guidance when using the Bank on Yourself strategy. Many financial products and strategies have misleading names or sales pitches, but working with a certified professional ensures the product’s legitimacy and that it aligns with your long-term goals. Choosing the right advisor adds a layer of protection and knowledge to help navigate complex financial decisions.
Tip #9: Align Your Money with Your Values and Goals
“Start first with the adjectives and the functions… then just start researching… what do you want your money doing for you?”
A clear financial strategy starts with understanding your own values and goals. Mark advises that before selecting an investment strategy, define what you want your money to do for you—whether it's legacy planning, tax advantages, or asset protection. Once these priorities are clear, research the best tools and strategies that align with these objectives.
Tip #10: Overcome Mindset Blocks by Starting Small
“Start with where you’re at today... do something that's going to challenge you but wouldn’t leave you burdened at the end of the day.”
The key to overcoming financial inertia is taking the first step, even if it’s small. Mark encourages listeners to start with a manageable action, like setting up a financial strategy or beginning with a small investment. By doing so, you create momentum and open the door to larger, more impactful decisions down the road.
