The Prosperity Credit – Episode 332

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[00:01] Welcome to the Prosperity Podcast. Listeners, on this episode of the Prosperity Podcast, we’re going to be talking about a new credit system. So you’ve heard of personal credit, you’ve heard of business credit, we’re going to introduce Prosperity Credit. Are you there, Kim? I am and I’m actually really curious to hear first, what you think of this new, really Spencer created content. Well, it’s wonderful to think about this. So I’m going to set the stage for a moment. In our research of the podcast, to find the correct episodes and topics, what we want to do is we want to see what resonates with others. And people are often searching on how to improve their credit score so that they can get better loans or a better credit card.

[00:53] And then business owners are often finding ways to increase or improve their business credit so that they can get business loans or they can do other types of transactions. But there’s another type of credit, which is the prosperity credit. And it falls into two categories. One is the mindset category, which we’ve talked about a lot on the podcast. And I think our listeners know a prosperity credit system starts with gratitude. But there’s a prosperity credit system where you will have access to your money, regardless of the position of the banks, regardless of the position of the stock market, and regardless of what’s happening with the value of the dollar, gold or silver. So that’s where we’re going to start. We’re going to talk about this and unpack

[01:45] that prosperity credit system. How about that? Awesome. I love this setup. What a great terminology too for an age old product that we have been working with for so many years that can be so effective in this space. So we’ll get into that side of the prosperity credit. Yet before we do, I want to add a little bit to it. And there’s two aspects to it. First is in the prosperity credit space, just when you used that word before you even described what it was, I was thinking of the impact of relationship capital or human capital that is out there in the marketplace that has to do with how you treat people, how your reputation is out in the marketplace, whether you’re a giver or a taker. And of course, we’re all always both, but where is the bulk of your time

[02:44] and your thought and your action spent? And those are aspects of prosperity credit that are just as important as the more monetarily oriented things. So relationship or human capital, I want to identify that. The second part, just as the intro, if you will, before the monetary side, is the idea of a concept called human life value that is going to tie into the monetary side of prosperity credit. And yet it also ties into the mindset slash relationship capital side of prosperity credit. And human life value is the economic measurement of what a human being is worth out in the marketplace. And it’s evidenced typically with some measuring of income and or net worth that we can talk about. And yet there is a human life value,

[03:47] even for people that are not working. Because if you’re not working in like a typical job where you get income, earned income, you’re probably providing some type of service. I’m thinking of a stay at home mom or a stay at home dad as an example. Those people have huge value out in the marketplace of the service that they are providing for that family. And so human life value is the bridge, I guess, if you will, between the relationship and human capital on the one side and the monetary credit related actual capability of money stored in a particular product that we’re going to talk about here today, that enables that prosperity credit. Absolutely. Well said. I’m going to run some parallels between these two as we talk more

[04:38] about the product. And here are the parallels. On a credit report, there are several different types of credit you can have. So you can have a credit card and we’ll list what your credit line is, your credit limit, but you also have different, you have installment loans, a car payment loan, you have a mortgage. And we know that some types of loans actually have a heavier weight in value on your credit report. And so like a mortgage, that’s an installment loan over a period of time. And if we look at that, wouldn’t that correlate with the relationships that we have, the depth of that relationship, the longevity of that relationship? There’s a lot of correlation between these two. That is a great way to look at it. I love that long-term perspective. And it’s so important

[05:29] in our incredibly fast-paced lives these days that we take time every now and then to look at those longer marathons, if you will, that make up so much of life. Absolutely. So we have this credit line, this prosperity credit line of our human life value. And you’ve unpacked a little bit about the determining of that. And again, that will be upon whatever the profession you are. And we can’t discount a stay-at-home mom or whatever that may be, but we would love to start to unpack this concept and talk about how this prosperity credit can be used to help individuals and families. Absolutely. So I think it’s time for the big reveal. You know how the new thing is like the gender reveal of the baby that’s going to be born. And you’re hearing those

[06:28] words all the time. So the big reveal is that this centuries-old product that we’re talking about is whole-life insurance, often called dividend-paying life insurance, at a participating company or a mutual company. Those terms are synonymous, but not always, because I have seen life insurance from a mutual company that was not participating, meaning it didn’t share dividends with the policy owner. And it’s nearly not as effective at all. So we want to be looking at whole-life insurance from a mutual company. And there are about 20 companies out there that fall into this category, so plenty to choose from. Most of them well over 100 years, sometimes 150, even 200 years old. The products have been around much longer than that, depending on what you pick as the starting

[07:24] point of this product. And what it does is you’ve identified is create prosperity credit. Just as we’ve talked in a recent podcast about whether you’re focused on a race to the bottom or a race to the top, this prosperity credit can be used in either way. But of course, we always encourage people to use it as a race to the top. So what do I mean by that? Well, prosperity credit, just like any credit, can be used for things. It can be used for large-screen TVs, for trips with your family, for putting in a pool, for all kinds of things that credit can buy. This prosperity credit can also be used for ideas and opportunities and investments. And so the race to the bottom is to use it for things. And there’s a lot of people out there wanting to help you use this

[08:27] prosperity credit to purchase cars, to buy other things, go on vacations with your family. There’s not necessarily anything wrong with that. And they’re certainly, depending on where you are in your life, all good with that because maybe there isn’t any other way to get it done. Yet, for a lot of our clients, I like to redirect the focus. And instead of looking backwards and looking down, which is how I’m viewing the, quote, things that this prosperity credit can help you access, I like the view to be up and forward looking and to use the prosperity credit for opportunities in the form of business investments, real estate down payments, other alternative investments that you can borrow against this credit and invest with. And this environment is that forward-looking,

[09:23] upward view of what are the opportunities and the potential that we can take advantage of with this credit because we have the credit there and it’s been established. And the first job of the credit has already been met, which is the liquidity and the cash creation that is necessary for all families to have peace of mind and be able to sleep at night because they have their emergency fund solved. So this prosperity credit can do both. It’s your emergency fund and it’s also your opportunity fund. Yeah, very well said. I want to run a few correlations between the business credit, personal credit and prosperity credit so that we can help see the similarities and speak in that language. And so for establishing personal credit, it’s actually

[10:16] pretty fast to get results. You can set up a secured credit card if you don’t have any credit and then you can get some of the easier credit cards and begin to improve that score. With a business credit, it takes a little bit longer. I mean, in most situations, it takes several months and after about between a year and two years, you’ll have established enough business credit that you can start to get loans that are not attached to your name. Now, prosperity credit, in order to have this machine working the way that you’re talking about, what’s the timeline that people should be thinking of? I would say three to four years at a minimum. Five to six is probably more normal for people to establish the emergency aspect of the line of credit. And then it’s frankly unlimited

[11:11] after that and should exist and be in use the rest of their lives. Let’s go back and I’m just trying to draw these similarities. In my mind, I almost see like this. You know those beautiful charts you see online, especially when you’re buying a product and it’s got the check marks from software. That’s what I see in my head. I’ve been thinking the same as we’ve been talking about this. Well, perfect. So here’s another thing that I’m looking at. When it comes to personal credit, we have to apply for each thing that we want. And unfortunately, when you do that, you take a ding on your credit report. So that’s something that’s negative. Now on a business credit, same thing. When we apply or we’re trying to access a line of credit,

[12:00] we can at times be subject to what the other institutions are telling us that we can do with that money. How does that work with the prosperity credit system? Well, the beautiful thing about prosperity credit is it’s completely private and available to you to do with it whatever you want, which includes handling those emergencies and opportunities. And yet it’s definitely not a short-term solution. So as you’ve identified, the personal credit needs to be built and potentially business credit needs to be built as well. And the prosperity credit is something that people will want to start as soon as possible. Starting a whole life insurance policy, which creates the foundation for that prosperity credit is something that is a marathon.

[12:51] In fact, it’s more than a marathon because you think of a marathon of 26 miles, right? 24. 26.2. 26. Got my numbers mixed up there for a minute. We could almost equate that to like a 30-year period. And so we talk about 30-year mortgages and you want to think about building credit and businesses and doing all good things for that period of time as a starting point. And then frankly, most of us will go on and have a second entire 30-year period. Like you could think age 30 to 60, again age 60 to 90. And then frankly, some of us will have a third 30-year period, which is 90 to 120. And what’s interesting is the whole life insurance industry is completely focused on age 120 right now. And so if you are in your early 30s or even younger, this is a beautiful time to start.

[13:47] If you’re in what I’m going to call the second phase, so the 60 to 90 phase, that absolutely works too. What’s interesting is that it does not work in the third phase. You can’t do this in your 90s, 100s, 110s, and 20s. Now, if you’re looking at me cross-eyed because you’re thinking, no way am I going to live that long, I encourage you to do some research on the web because there’s a reason the life insurance companies are focused on age 120 right now. And it’s because more and more and more proof is coming up that people in their even 50s, 60s, and 70s today will live well into their 100s, 10s, and 20s. So this long-term perspective is so critical. And just like the old story of you want to plant a tree 30 years ago,

[14:33] and if you didn’t plant one today, that’s really how life insurance should be looked at. Get it started. Start to build that prosperity credit. Start to build that account. Start to build the opportunity that exists within that space. Absolutely. And I’ll say one additional piece to this. And it’s just that there are sometimes situations where it doesn’t allow an individual to set up that life insurance policy. It could be for health reasons. In that case, one of the things that you’ve taught about on the podcast is you can get a family member to do it. A child, a sibling, or a spouse, so that no matter what, there is a solution to creating this. So don’t ever feel limited or left out in creating that prosperity credit system.

[15:23] That’s really well said. And you and I are going to have to work on this little diagram that we’ve had in our heads because I think there’s so much good learning that could come with this. And the whole life insurance space is not easily learned about. Unfortunately, there’s a lot of information that’s incorrect on the web about it. And of course, nine out of 10 financial advisors are not going to help you understand the credit capability at all because they themselves don’t understand it. And yet it’s something that we’ve worked with for almost 30 years. That’s so true. And you know, multiple companies wouldn’t exist right now. We’re talking the companies that we see in this world that operate.

[16:04] They wouldn’t exist if they didn’t tap into that prosperity credit system. And it’s something that should be taken care of right away. And you may still have questions. I’d say probably one of the best things to do is to send an email at helloat partnersforprosperity.com and ask those questions. And if you have listened to this podcast in the past and you say, okay, that’s it. I’m finally ready. Well, in an email, Kim can gladly help answer those questions as well. Would that help, Kim? Yes. Hello at partners. Number four, prosperity is dedicated to our podcast listeners. I love the questions that come in on that. And I’m always happy to help. Wonderful. Well, listeners, thank you. And we will work on that chart to figure out

[16:49] the way to display that prosperity credit system for you. And we thank you for spending time on the podcast with us 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.