How can you get the most out of the money that flows through your personal economy? How can you get the most out of the cash you save up for real estate investments? I’ll answer these questions, but first let’s look at a real life example.

My family saved up about 100k over my first 18 years to pay for my college education (a huge privilege and opportunity). But then, over four years, that 100k was transferred from our household economy to the University of Arizona. I got a degree out of it! But that hard earned money no longer grew for us because we separated ourselves from it… we paid cash.

Had that money been stored in the cash value of a permanent insurance policy and taken out as a policy loan, rather than a withdrawal, that 100k would have grown to about 500k over my next 40 years (assuming no additional funds were added). I would have paid off the policy loan at a schedule I set. But the key is the full 100k originally saved continues growing uninterrupted at 4-5% while I earned the degree that propelled me into my career. And the interest I pay on the policy loan is outpaced by the interest the cash value earns, resulting in positive arbitrage.

This is why banks operate the way that they do. They are willing to pay you 0.1% interest for the control of your capital and the ability to loan it out at 3% and profit from the difference.

Enter the principle of opportunity cost. Warren Buffet harps on this idea that losses affect your money more than gains. When you lose a dollar, you don’t just lose that dollar, but you lose the opportunity of what that dollar could have earned you over your lifetime. This same idea applies to the money that comes in and out of your hands with real estate investment. As you invest your dollars into profitable deals, you’ll earn a rate of return. That return will look different whether it’s a fix n flip or a buy and hold or commercial, etc. The main thing is you’re putting your dollars into a profitable endeavor. So why not redirect the flow of your money through a personal banking system (permanent life insurance) so that while your dollars are out working for you in real estate, they never stop working themselves in the cash value of your policy.

Your dollar can have multiple jobs at the same time! This is a huge paradigm shift. But it’s the same reason you use things like credit cards. By redirecting the flow of your money through a credit card, you pick up the benefits of delayed payment for 30 days, points or cash back, and becoming a credible borrower…

The benefits you pick up by redirecting the flow of your money through cash value life insurance are: 3-6% long term guaranteed gains, tax-advantaged growth (unlike banks & traditional qualified plans), creditor protection, a permanent death benefit, long term care protection, access and control (unlike qualified plans) and of course… recovered opportunity cost, the ability for your dollars to continue earning while being deployed to investments that also earn.

The impact of spending and investing efficiently throughout your life will have far greater impact than socking away a little bit more in a retirement account each year. You can go against the trend of the masses and develop a system that will give you control of your capital and the ability to use your skills, creativity and awareness of opportunities to act and get to the center of investments. The best investments are the ones you create or get invited to. And there is no better vehicle than a personal banking system to invest from.

If you’d like to see the calculations behind these examples or explore more, schedule a free clarity call by emailing me at


by Jack Carlson, Unbridled Wealth