The One Tool For Creating Wealth For Legacy – Episode 319

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[00:01] Welcome to the Prosperity Podcast. On this episode of the Prosperity Podcast, we’re going to be talking about creating wealth for legacies. And there’s one tool that I’m going to recommend for all of us to dive into. Do you know what that tool is, Kim? I do. It’s our newest book that’s out. Yes. It’s exactly it. And we’re going to share some content in there so that we can help you and your family. So Kim, lead us on this trip. Well, this has been at least two years in the making, if not longer. And it is the product of Kate Phillips and myself brainstorming constantly about how to help our clients build and maintain and transfer wealth. And we mean wealth both in a monetary sense and in a psychological, emotional, mental, spiritual, et cetera, et cetera, et cetera,

[01:05] sense. And it has been an absolute labor of love. It has been a ridiculous amount of work because it started as this little family banking kit that we were going to do. And Tammy Brandon was even involved in it. My sister, she’s like, oh yeah, let me create some stories for you. So she came up with this fictional couple and we had a letter from a grandma to a grandchild and a few other things. And then Kate said, well, we should really add this. And we thought, oh my gosh, we need to add that too. And it just grew and grew and grew. And over time, we shifted the name of the book from an overt focus on family banking, which we feel sometimes is very misleading for people. And we feel like a lot of the people in the quote, banking space, I mean,

[01:58] using life insurance as a place to borrow against are overly focused on the borrowing and they’re borrowing too much too soon and too often. And so we wanted to shift the focus to the building of just plain cash. It’s the cash that’s the value, not the borrowing. It’s the cash that gives you the control and the liquidity and the ability to use it. And it does act like equity. That’s my little clue acronym that we’ve had for so long, CLUE, control liquidity, use and equity. And yet inside the perpetual wealth book, we’ve enabled people to see the long-term value that the cash value of life insurance along with the death benefit has. And that’s the other challenge, I think, is we’ve completely

[02:52] forgotten about the value of the death benefit. So with these three parts, the build, maintain and transfer wealth, it would be great for us to take three different snapshots from the book. One of each of those, would that work for you? Yeah. Okay. So can you give us a snapshot from the book about building wealth? Yes. So we are talking through the family’s act of savings, which is a verb, at all levels of the generations. So just for ease, we’ll call them grandparents, parents and kids. Kids could be literally zero to 18. Although, as we also know, you call your kids adult children. And so at all levels, we’re talking about the importance of building wealth. People that are in their seventies could live another 30 years. They still need to be saving money

[03:44] if possible. And I think that that’s a really missed point in typical financial planning. Absolutely. It is. I think a lot of people feel like they get to a point that they’ve made it or that they often sadly give up. And that’s even worse. Now we’ve got maintain. Where can you take us on this ride through maintain something in the book there? Well, you know, it is interesting. The concept of maintain or the concept of maintenance is a really scary concept. So think about it like with your body, if you’re just going to maintain, like I tried this for a few years, like I went to my trainer and I said, you know, I’m not trying to build more muscle. I just want to maintain. There is no such thing. You cannot coast. It just doesn’t work. You’re either

[04:31] moving forward or you’re moving backward. Yet what we’re trying to get across here is that if you’re going to build wealth, you don’t want to lose it. And so how do you same concept applies? How do you make sure you don’t lose it while at the same time, not play defense all the time and be in scarcity mode. And the way to do that is to have the place where you store your cash that you have built be a place of certainty, be a place where you are not going backwards. And I mean, literally as in like loss due to stock market, but also figuratively as in loss due to inflation, because inflation is the elder person’s number one enemy. So they’ve got to build and maintain slash store their wealth in a place that’s going to give them a fighting chance of at least

[05:25] combating inflation in some way. In other words, they’ve got to earn enough money inside the account so that inflation isn’t eroding the value of the dollars all the time. You know, I’m so glad you brought that up because while you beat me to it, I was going to mention the inflation is that enemy. But there’s one other thing that you’ve often said on the podcast. And it’s a misconception that so many people in the financial industry say, which is more risk equals more reward. Isn’t that just a joke? I mean, that’s awful. It really is. And I used to say it back in my early years when I didn’t know any better. And frankly, all more risk means is a greater chance of loss. And so you have to be so careful when you’re looking at things. And believe me,

[06:11] I’ve lost money. It’s not fun. And so when we can find a place of certainty, while it may come as a slow and boring environment, it’s still so much more effective to at least be the foundation of our finances. It doesn’t have to be all of our money. It just has to be the foundation. And just like when you’re building a house, you absolutely positively have to have the best foundation possible. Otherwise, that house is not built on solid ground. Our finances are no different. Absolutely. So the final part of the build maintain, the final is to transfer wealth. And I think often this is one that is probably the most mysterious for people. And how would you share some insights about transfer wealth that’s from the book?

[07:01] Well, we cover many, many different things about wealth and its transfer because, as I said, it’s not just monetary wealth. So we have ideas in there about family retreats. We have in there the seven phases of prosperity, which is the first time that we’ve ever put this in writing. And it’s a prosperity economics view of success as it relates to wealth transfer from generation to generation, which is not only about when people die. The transfer of wealth and knowledge and things like values and other important things, that’s going on from generation to generation constantly. As soon as a baby is born, the parents and the grandparents are transferring wealth by sharing the values of the family,

[07:52] sharing habits that they’ve learned, being an instructor and being a parent. That’s all transfer of wealth. And so we get into that in depth. And then I love what we wrap up with, but I want to make sure I answered your question on the transfer part. Yeah, you did. You mentioned the transfer of wealth. And I think the financial piece we mentioned earlier of the transfer of wealth that can happen from a life insurance policy or whatever that may be, but also the transferring of values. I’m excited to hear what you have next. At the end, we talk about winning the long game of wealth because building, maintaining and transferring wealth is a long game. It should be a hundred year endeavor. First of all,

[08:38] because a lot of people listening to podcasts are going to live a hundred years, easy piece of cake. And second of all, because you really want to look generationally at the building of wealth so that you stop the typical starting over that every generation is having to do. And so we’ve got stories in there. We’ve got samples. We’ve got ideas of a variety of things around family mission statements and the transfer of knowledge and wisdom and habits. And one of the most important habits is that of saving. And it’s become a boring habit that nobody wants to talk about. It’s not sexy and fun and exciting, but it’s also very effective. And so if you as a family can figure out the saving game and create that habit with

[09:25] your family, then that is something that can be passed on from generation to generation in a way that will enable subsequent generations to not have to start over at zero every single time. Very, very well said. Now, the last question that I have is how can we get this book? And so we will put a link in the show notes. There’s a special little form that you’ll want to sign up on in order to get the book. It’s an immediate download. We’re giving it to our podcast listeners. And so we will have that for you at the show notes. Perfect. Well, listeners, now you know how to get the book and you’ve been able to hear a little bit about how to build, maintain and transfer wealth. Now it’s time to take action to go and do it. We’ll put the link inside of the show notes so

[10:16] that you can read this book and we’d love to hear your thoughts on it. You’ll get an email which you can reply to and let us know what you think of the book. And if you have questions, feel free to send those to hello at partnersforprosperity.com. Anything else you want to say before we end, Kim? I’m always grateful to our listeners and our readers. And yes, there will be an audio version of the book available. It will probably be a good month out because we are wanting to get a little bit of feedback and just tighten the book up a tad. I will prepare people. It’s 327 PDF pages, not book pages. It’s going to be like a 500 page book if we ever put it on Amazon. And I don’t know that we will. I think

[11:00] we’re going to treat it a little differently. But do know if you just can’t get the time to read that we do intend to create an audio version of it fairly soon. Wonderful. And we’ll let you know listeners when that comes available. Thank you for being with us on the podcast today. Thank you for listening to the Prosperity Podcast. To take control of your money and have it work for you, visit us at partnersforprosperity.com. If you liked this episode, make sure you subscribe and leave a review.