HOW BILLIONAIRES AVOID TAXES AND PROBATE WHILE YOU GET SOAKED

➡ Dave Hodges, host of the Common Sense show, discusses financial challenges facing Americans, including inflation, debt, and poor financial education. He interviews financial professional Joel Lombardi, who suggests that people should consider being their own bank and using IRS code section 7702 for long-term wealth accumulation. Lombardi criticizes the current financial system, including the Federal Reserve and taxation, and suggests a new currency controlled by the U.S. could be a solution. He also discusses the importance of financial independence and the strategies wealthy people use to maintain their wealth.
➡ The article discusses the drawbacks of traditional investments like stocks and bonds, particularly in 401k plans, where high fees and taxes can eat up over half of your earnings. It suggests that many people have a false sense of financial security and don’t understand the need for diversification in their investments. The author proposes an alternative strategy involving life insurance, where money is put into overfunded policies and used to buy option contracts, which can yield high, tax-free returns. This strategy also provides protection against loss, as the insurance company guarantees to pay the benefit, and allows for loans at low interest rates.
➡ The text discusses a financial strategy where instead of selling assets and paying taxes, one can use the death benefit of a life insurance policy as a loan, which is tax-free. This allows the asset to continue growing. The strategy also involves buying finance vehicles or business equipment using the interest earned, effectively making these purchases free. This method, often used by wealthy individuals, involves overfunded life insurance policies that grow tax-free and are protected from lawsuits. The strategy can be started with existing retirement assets and monthly contributions, diversifying market exposure and taxation. It also provides benefits like disability, long term care, and death benefit.
➡ The text discusses a financial strategy involving annuities and insurance policies that can turn a taxed asset into a larger, tax-free asset. This strategy, known as ‘being your own bank’ or ‘infinite banking’, is legal and has been around for hundreds of years, but is still relatively unknown. The author offers free advice and resources to help people understand and implement this strategy, which can provide two streams of income and avoid probate taxes. Despite its benefits, the strategy can be complex to understand, so the author offers one-on-one presentations and online resources to help explain it.
➡ Joe, a successful financial advisor, emphasizes the importance of protecting investments from losses rather than just focusing on high returns. He explains his strategy, which has been effective for over two centuries, and how it works with trusts and annuities to avoid probate. He also discusses the importance of insurability for his strategy and suggests using children’s accounts if the client is uninsurable. Joe’s ultimate goal is to help people improve their financial situation.
➡ Joe from Iron Hawk Financial offers a unique insurance policy that benefits both healthy and unhealthy spouses. The policy’s cash value is used tax-free for the unhealthy spouse, while the death benefit serves as long-term care for the healthy spouse. Joe provides free consultations, estate planning, and long-term care strategies, with no hidden costs. To learn more, you can email him directly at joe@ironhawkfinancial.com.
➡ The speaker, Joe, is a financial advisor who has worked with wealthy clients and learned from billionaires. He has made connections and built relationships in the financial world, which has led to business opportunities. Joe now aims to share his knowledge with average Americans, focusing on blue-collar workers. His goal is to become a well-known figure in the finance industry, like Dave Ramsey, but with a focus on annuities and life insurance.

Hello America. Dave Hodges here, host of the Common Sense show. We are the show that is freeing America one enslaved mind at a time. We’re coming to you live from the Noble Gold Studios. And you know the Dodd Frank Law 2010. They could take your money. Not that they want to now, but if they’re failing, what do you think they’ll do? No one should have a retirement, in my opinion, in the bank or we have an expert on to talk about those kinds of things. But Noble Gold can help set you up. They can protect you, they can help you invest.

I’ve been a customer for seven and a half years so I can give this federal trade warning due diligence. There’s no guarantees. I’ve also been an advertiser for 8 and a half years. Best people to deal with. No pressure, no call centers, just honest help. Go to Dave Hodgesgold.com Dave Hodgesgold.com Put in your email address and I’ll send you out a free information packet. Our guest is Joel Lombardi and I gotta tell you the, the background here economically is really strong. He’s published three books. He’s a radio show host, 20 plus years financial professional. He’s gotten too many awards to mention here.

I like the titles of his books. Being your own bank, there’s a better way than the 401k. Long term care without long term pains. And we’ll be telling you how to get a copy of those books as we go. He also hosts his own show, Money Talk with Ironhawk. This is good, good stuff we’re going to get here because I believe we’re in a real transition period financially in this country and future is not guaranteed. And to help set as many of you on the right course possible, we asked Joe to come on. Joe, welcome to the show.

First time visit to the Common Sense show. We appreciate you being on. Thanks for having me, Dave. I gotta ask you though, what’s number 22 in the background? Back when I was younger, my dad liked the Cowboys. So that’s Emmett Smith. He won. Oh yeah, the Dallas Cowboys. So yeah, they stink for the last three decades, but it reminds me my childhood. So, you know, I still, I still like looking at that stuff because it’s all the only thing really me and my dad did because my mom wasn’t around. So, you know, sentimental. Well, Emmett Smith, pretty good.

I saw him here in Arizona at the end of his career and he was still pretty good then, even though he was at the end. Yeah, good guy. I mean, so congratulations. But I gotta tell you Grew up in Denver, a long term Bronco fan, but we’ll ignore that. Okay. Anyway, Joe, there’s so much going on right now with the economy and Trump was handled just a poop pile mess by the previous administration and it’s been a long time brewing. What do you think are the most significant challenges facing not just the banks and the government’s balance sheet, but average everyday people? Inflation, not having enough money budget, poor financial education because they don’t teach you it in school, they want you to be a financial slave.

The dumber you are, the more they can take advantage of you. Debt, high interest, no plan. You know, it’s a combination and unfortunately because of this right people, majority of the majority are in a bad financial situation. And, and it’s, it’s sad, you know, because finances gives you peace and gives you the strength to grow your spiritual, mental, emotional and physical self. And if you don’t have that in order, it makes it extremely harder. It really does. And I do agree with you. Inflation is the great erosion. Let me ask you a real pointed question and I, and it’ll be silly to an expert, but to the average person, I think they need to hear it.

Can we ever have close to zero inflation as long as we have the Federal Reserve? No. Can you explain a little bit about why we owe what, 37 trillion? The big beautiful bill is going to put it push us to 40 trillion. Highest marginal tax rates in the 1980s were 70%. In the 1960s were 92%. It’s unsustainable to push taxes that high to cripple our economy. So debt’s going to keep flying and if debts keep flying. Right. It gets to a point where what would they steal from us called taxation, which is theft. What they steal from us isn’t enough to pay back all the money.

They already overspent on money that before, before they stole it from us, they spent it. So we’re not going to get out of that vicious circle anytime soon. So we have coming up 40 trillion. If this bill passes, 37 presently, don’t we take in around 2 trillion in taxes? Yeah, you do the math. It doesn’t even cover our interest. Go to go to us deblock.org tell me the last time you saw the number going down. It doesn’t go down. No, no, no, that’s, that’s, but my point is this is that taxation seems to be almost unnecessary given the staggering nature of, of the debt.

So with that in mind, what’s the strategy? What should Trump actually be working towards to reduce this deficit. Some sort of new currency that the US still controls and reset that has some sort of bells and whistles and stops and, and, and accountability. May I even dare to say that’s something that needs to be done. But it, it won’t be done. You know, there’s no way. Because every other country is just as bad. It’s just how the government works. They extract resources from their citizens and then they spend more money than they have. They, they make a deal with the devil known as the Federal Reserve and never going to get out of it.

When we had the old mercantile system and effectively a gold standard, were currencies more stable then? Oh, absolutely, absolutely. When you have a fiat currency, it’s like a meme coin, right? You’ve seen those pump and dump schemes and just oh, this is valuable. Okay. Everyone thinks it’s valuable, then the next day it’s not valuable because what is a dollar, it’s a piece of paper and it has zero value unless you think it does and the person that you’re doing business with think it does as well. Other than that it’s literally worthless. Yeah, I hear you. Well, the title of one of your books, being your own bank, that’s an intriguing title to me because I think it’s advice that’s really geared towards helping people step outside the system as much as possible that otherwise would pull them down.

What kinds of things do you talk about in that book? So I specialize in IRS code section 7702. Just like 401k is an IRS code. 403B 457A college savings 529. Those are all IRS codes. The 7702 code is the best code ever existed in the IRS book for long term wealth accumulation. It’s built and made and lobbied by billionaires for billionaires. And the average American has real estate, business equity, IRAs, 401 s, gold, silver and bitcoin. And wealth people, very wealthy people have annuities, index, universal life, whole life. They have these vehicles in place because it is the key component of the Rockefeller strategy.

And the Rockefeller strategy keeps growing legacy after legacy after generation after generation. And it allows their bloodline to live like kings until their bloodline is over. Using an irrevocable life insurance trust, you know, with a life insurance policy in it. And then upon death of one of the, the owners of the trust, you know, or beneficiary should I say, of the trust dies. The next one has to buy life insurance in order to get back in and obtain it. It’s a genius, genius strategy. And if you look at how banks contract money back and forth, they do it inside of bank owned life insurance policies.

So you’re talking about a trillion, a trillion dollar business that the average American doesn’t even know exists. And they’re not even legally allowed to advertise because you’ve seen gold and silver commercials. You’ve seen tons of commercials on pharmaceuticals, alcohol, tobacco, the jab. They can say anything. But when’s the last time you saw an investment commercial? When’s the last time you saw an investment strategy commercial? It’s not allowed because they need their peasants and their sheep and their slaves in 401s, IRA, SEP simples, pension deferred comp 457s. Because you are making a deal with Mr. Uncle Sam to take half of your money.

When you take it out, Uncle Sam takes no risk. So if your account goes to zero, Uncle Sam says, oh, well, it didn’t cost me nothing. And if your account goes to a million, Uncle Sam’s taking a half a million of your risk, your time, your energy, your time away from your family and children and people you love that you sacrificed and saved. The government’s like, yeah, give me half of that. Well, how they take half? Federal tax, state tax, fica, Medicare, unemployment, Social Security tax. Then Wall street was like, hey, the government’s taking all this money from dumb financial Americans.

Why don’t we get in? So IRS and the federal government and Wall street all came together and said, hey, why don’t we offer stocks and bonds inside of this 401k? All this you could see on 60 Minutes from Barbara Walters from the early 90s was telling us the truth. Remember when we actually had honest shows on media that was funny besides having to do podcasts to tell the truth. On the way up, you have what, 12 B1 fee, Class A share fund fee, money manager fee, annual counselor mutual fund expense fee. What’s one and a half percent, which is the fee over 30 years? Well, one and a half times 30 is 45.

What if it was compounding? It’d be a lot more than that. So on the way up, you’re paying over half of your money in fees to Wall street, which I’ve worked in Wall Street, I live in Connecticut and I worked in Manhattan and in Wall street in New York City. And then on the way down, you’re paying fees to the federal government. So people are seeing less than 25% of their principal that they put in actually back in their pockets. When they retire. So traditional investments are really, to quote a euphemism, a ripoff. Oh, if they’re made by the government for the government, and the government’s advising you to take it like the jab, it’s probably not good for you.

So if you really understand, you know, the strategy financially. So it’s, it’s one of those things where people have to critically think. They have to say, well, all these sheep are doing it and none of them are really getting ahead. Because I meet clients that have $2 million in their 401k. I had a client at 1.3 and he’s like, look, Joe, I’m a millionaire. And I’m like, cash it out. You’re not a millionaire. You have a fake number on a piece of paper. It’s not real. If you, if you take it out, you’re only going to get half.

So you’re a 700,000 there. And it gives people a false sense of hope in retirement. If you have a million bucks, oh, I could retire in a million bucks. Really? With inflation running at 7%, the rule is 72. Your money’s going to be worth half in 10 years and you’re 65. That means when you’re 75, your 100,000 a year is now 50. When you’re 85, your $100,000 a year is now 25. What are you doing to offset that? And so you have two camps in this field. You have one that go all in. I mean, 80 year olds that are 100% stock.

And I’m, what are you doing? And then, you know, and then I meet 20 year olds that have all their money in like CDs. And I’m like, there’s a balance that the average American doesn’t understand that you need diversification of taxation, diversification of market exposure, diversification of liquidity. And a lot of Americans like something like gold and silver and they put all their money there like bitcoin, they put all their money there like xrp, like real estate. And they don’t diversify. The best way to get where you want to go is to diversify your different assets.

So when one’s rocking and rolling like gold and silver is rocking and rolling right now, you want a piece of that. When bitcoin’s rocking and rolling, you want a piece of that. But when a weight comes, you don’t want all your money in 20, 20 comes or two months ago with the tariff war, you don’t want to be caught in that crosshair. Okay, that makes A lot of sense. I want to back up to the life insurance though, because I had trouble conceptualizing what I could do with this. So can you walk us through this alternative that’s illegal to publish? Absolutely.

So what, what my clients do is they buy a, a shell for their money. And the more death benefit you buy, the more you can put into it. It. There’s something called a mec, a modified endowment contract. So the logic is, let me just buy a thousand dollar death benefit for pennies a month and put in $50 million and it’s all tax free. So the government was like no, no, no, no, no, you can’t do that. So they came up with this rule called a seven pay rule. So if you want to put in a million dollars, you have to buy like $3 million of life insurance.

If you want to put in 5 million, you have to buy, you know, nine, $10 million of life insurance. So there’s a rule. So what the life insurance does think of like a, a forever term policy, right? So there’s cost to that, right? Over time, a lot less cost than Wall street. And you actually get something for your costs. So you put, you put your money into overfunded, hence overfunded. Either index universal life or a whole life with max paid up additions called PUAs. If you structure it that way, a big portion of what you’re putting in avoids all the costs of the insurance.

So that’s going right into option contracts. So if you look historically a company like Allianz, company like National Life Group, you know, I was just in Bahamas two weeks ago getting their number one broker award in the country out of 80,000 reps. I was number one. They have the ability to say, hey, our Strategy is averaging 14% tax free, compounding returns over the last 20 years, documented 13.99. They’re 15 years averaging 14.01. So when you understand well, how are they getting those type of returns, The S&P 500 in that same time was only average about 7, 8.

So how they get that is they don’t buy the actual set asset, they buy option contracts. And this is where goes over a lot of people’s heads. Because they’re like, what is an option contract? That’s a call, that’s a put, that’s a short, or that’s a long. You remember the movie the Big Short where the guy bet against, made a billion dollars betting against mortgage backed securities. That was a call option or what’s called a put option. So what they do is they say, okay, If I don’t own the asset, right. And I don’t lose money, I can’t lose money, right? And I’ll get to that.

If I can’t lose money and it’s averaging double digits, isn’t that. And it’s tax free and it’s sue proof and it’s divorce proof in most states and it buys me life insurance, disability, long term care, all built in, no extra cost. It’s all built in the coi. What I’m doing effectively is I’m building a strong financial foundation. I’m protecting myself in case I can’t take care of myself. Older in life, I’m not thrown in jail. Also known as a nursing home, a 10×10 cell with a stranger. I can’t hire and fire the people that are preparing my food and taking care of me, whether they’re having a bad day.

So these are the things that are very important for people’s physical, mental, emotional and spiritual well being. And I lived it. I watched my dad fall three stories. It was a $27 million construction company. I watched my mom die at 52 years old. Supposed to liver from alcoholism with no, no life insurance. I watched my grandmother have a stroke, led to dementia. She was in a nursing home for seven and a half years. Lost $4.2 million in the late 90s. What would that be equivalent today? So I lived it. So this strategy, I have a passion and that’s why I do all these podcasts.

That’s why I’m screaming from the rooftops before I get offed by the Clintons. I’m just letting people know, hey, this is a real thing out there. It’s, it’s not baloney. So if you want to back up, how do you not lose? Well, think about it like this. If the insurance company’s general accounts right now are averaging about 7%, which they are, if you dumped in a million bucks, hypothetically, they give you the 7% up front. So they’re going to give you $70,000. Here you go, 70 GS. They’re going to take that 70,000. They’re going to buy option long call contracts.

If they hit, you’re going to make a lot of money. What if they don’t hit? What if the market goes down? Well, you lose Nothing because your 70,000 is gone, right? Oh, I lost 70 grand. No, you didn’t. Because a general account is paying 7, they front load you the money. Your other 930 is sitting in the general account 12 months later with a 7% interest. You’re back to your million dollars guaranteed. So it’s an ingenious strategy that if you partner with an insurance company, in this example, Allianz, who has a managing partner in this example, Morgan Stanley, and you put an insurance wrapper around your money and then you buy option contracts with it, and then you have the ability to lean the money out because you’re guaranteed to die.

So the insurance company is going to guarantee to pay that benefit. They’ll loan it to you at very low interest, way lower than you get on the street, and they’re still going to pay you on the money you loan out. So if, let’s say somebody like Elon Musk needs a hundred million dollars, right, he has two options. He can sell $200 million of Tesla stock, pay $100 million in taxes because that 200 million is going to come to him as income, taxable income, pay a hundred million dollars in taxes, lose out on $200 million of future growth of that asset because he sold it, isn’t on it anymore, net the 100 million by the SpaceX rocket.

Well, he doesn’t do that and neither do any of my thousands of clients. What they do is they say, okay, let me use the death benefit as the bank. So let me take $100 million, let me get a lien against it. Are loans taxable? No, they’re legally tax free. So I pay $0 in taxes. Okay, okay, I got my 100 million. Well, I had to sell something, right? No, you didn’t. So you still own that $100 million of asset, whatever stock, mutual funds, a call option, gold and silver, you still own it. So the profit historically of that said asset over 12 months is higher than the loan rate.

So my clients have a negative interest rate of return. So I teach my clients how to buy finance vehicles, business equipment for free. Meaning at the end of seven years, six, 72 months, six years, all the money they would have paid in interest and all the money they earned on their interest covered the cost of whatever they bought historically. So I know this was very, very confusing for the average investor. It’s hard to keep up because there’s a lot of moving parts. But it’s pretty simple. You just buy a life insurance policy, put a wrapper around your money.

That wrapper allows you to buy option contracts where you’re guaranteed not to lose the cost of the insurance is covered by the growth of the said asset. And all the growth and the principal are legally tax free because it comes to you as loans. It’s sue proof because you have HIPAA laws. Remember Covid, you had the HIPAA law. You couldn’t. Anyone could know your medical information. So if you get sued, they don’t know you have it legally. So this is far superior to the traditional investment out there. And it’s not even close. Wow, it’s amazing. And you’re saying the Rockefeller set this up? This strategy is known as Rockefellers because JP Morgan Chase sports athletes who don’t go bankrupt.

That’s how they do it. Like when you think of somebody like Shohei otani gets a 700 million dollar contract to play baseball and get traded from the Angels to the Dodgers, where’s he Gonna put his 700 million? Like really think about it. Go to each one of your asset classes. Is he going to go to a 401k? No. Is he going to go to the bank with a $250,000 FDIC insurance loan? No. He might go to some real estate, might go to some Bitcoin. Most likely a little bit of gold and silver is healthy. But what they do is they put their money in overfunded life insurance policies because it’s guaranteed to grow.

It’s there, it’s not in a bank. It can’t be levied, it can’t be taken. And if they need it, it comes to them. And if they die, it avoids probate. So it works as a trust. Then if you want to get real creative, you put it in an irrevocable trust. And now it avoids estate taxes. If you have an estate tax issue. So these are the things that the wealthy people are doing that the average American says, why am I broke? Why am I in this bad position? I work hard, why am I not getting ahead? I don’t have 500amonth to put away.

I can barely pay my credit card. That’s 20, 30, 40 grand at 29.99. It all comes down to the investments. You’re putting in a 401k, right. What do you think would be smarter, Dave, for you to pay off a $30,000 credit card at 29.99 tax free or invest your money in a 401k? Yeah, I hear what you’re saying. Let me ask you this. What about minimum? People are going to ask me that. Some people, most people don’t have 10 million to put in or even a million. How do you get started with this? If you’re an average person, middle class.

So what I do is I take my clients existing retirement assets, qualified assets, I put them in a fixed Index annuities. I do over $100 million a year. Then what I do, and that’s averaging 16.72% in a five year option contract documented over the last 10 years. 119% rate of return in the last five years. Show it to you in writing. Then what I do is the money you were putting in your qualified account, whether it’s 300amonth, 2,000amonth, 5,000amonth, whatever you’re putting away, we put that into an overfunded iul. Now what you’re doing is you’re diversifying your taxation, you’re diversifying your market exposure, you’re diversifying your liquidity, you’re building a strong financial foundation for the people you love, including disability, long term care, critical illness, critical ailment, death benefit in a bank, hence my title, my book.

So by doing that, you are now the bank. You are now American Express. You’re never going to get to a point where you have to pay 29.99% anymore. You don’t have to go to Ford of America at 11.29% for a 72 month car note. You can use your retirement for you and then pay yourself back. Amazing. What’s the typical amount that middle class people bring in? Is it just their retirement that they’re paying into? No. So the retirement, there’s not much I can do. Unless you’re in retirement. Then I have a really, really cool strategy. Let’s talk about that because we have a lot of ret.

Listen. Oh well, if you’re retired, let’s say you have an IRA and there’s a portion of your retirement account you’re either going to use for a legacy or you don’t plan on taking. So I have a strategy. I take. Let’s say you had. Again, I’m just using a million bucks as a simple. I can use 100 grand. It’s the same thing, right? The minimum in that strategy is like 25 grand rollover. It’s very small. So let’s say you, you had a million bucks. You roll it into the strategy. It’s paying right now about 8, 7 to 9% guaranteed on your age as income for the rest of your life until you die.

And most of those plans have an income doubler for long term care. So if you need long term care, they’re going to pay you about 14% out of your account for life until you know you pass or your money runs goes to zero. So what this strategy does is I take my client’s money. This the 7,70,000 out of the 100, the 80,000 out of the 100. We pay the taxes on it because they’re going to have RMDs anyway. They’re going to have required minimum distributions at 73 anyway. Going to be forced to take it out. So we, we put it in that strategy.

We then pay the taxes. Right. It’s not a tax elimination strategy, it’s a tax reduction strategy. Right. 80 grand isn’t going to push you to the highest tax bracket. Cashing out a million is. So we, we drip the money out every year. We, we take 60 grand after you pay the 20,000 in taxes and we take that 60 grand and we put it into an I. Now what I, what did I just do? They still historically have their million dollars because they’re just taking the gains historically off of the IRA or 401k and they’re dripping it into an IUL.

So they just created a tax free account out of thin air that is growing and compounding for them. Every year they need to get a car for retirement. They need to update the house to add railings and ramps and $100,000 bathroom for a wheelchair. They have cash to do it and it doesn’t cost them double. Because when you take the distributions, the money you’re going to need when you get older to really build your life safely and properly so you can die in peace and still celebrate Christmas, Thanksgiving, birthdays with the people you love. I much rather have it half off, meaning for every dollar I pull out of my qualified money, I have to give half of it to the government.

When you pull a dollar out of my strategy, you have to give zero percent to the government, so it’s 50% off. So what my clients do is they utilize this strategy for the big expenses in their, in their retirement. They use it to leave a legacy. So it’s a death benefit. So I actually did this for a wealthy client who had a state tax issue. They rolled over $2.7 million in a David Lerner investment account. We put it into an income annuity called A through National Life Group, the income driver that pumped out 8.7% guaranteed. We took that, that 2.7 million, pumped out like 240 a year.

We paid the tax on the 240, took 200 grand, bought a second to die. So there’s a husband and wife, you buy a second to die policy. So it only pays on the death of the second person. First person dies, there’s no value, but it transfers to the second person. Free of gift tax because you could transfer between spouses while paying the estate or gift tax. So then what I did is I bought a $10 million, a $10 million tax free seconded I policy. So I turned a $2.7 million asset that was going to go through estate taxes at 50% and ordinary income taxes to both their, their boys, the two sons at 50%.

They would have netted about 800 grand. I turned it to 10 million guaranteed. Because you’re guaranteed to die. Is this related to your second book and what you say? There’s a better way than a 401k? Absolutely. So the second book talks about the value of annuities being your own bank, Talks about the value of Iuls and long term care without long term pain. Talks about the riders and the built in benefits of annuities and Iuls. It’s amazing. I’ve never heard of this before. What percentage of the public do you think is aware of this? I’d say it was less than 1% about 20 years ago.

But now we’re starting to see Forbes, Forbes magazine in 2018 published articles. If you look up rich persons, Roth on Forbes, which I’ll send them to your listeners if they want. If any of your listeners want my books, my magazines, my articles, my YouTube video, my radio show, my website, my calendly to book a time on my calendar. It’s free. My time is free. I never charged a client a dollar in 22 years. Never lost a client a dollar in 22 years. That’s why I’m a plus rated on the Better Business Bureau with 00 complaints. Thousands of clients.

So if, if you know, so if you understand the, the foundational aspect of this strategy, it’s, it’s again, men lie, women lie, numbers don’t lie. And you look at the numbers, you look at the rules, the IRS legal code that said this is 100% legal. And there’s books written on this. There’s, there’s, there’s, there’s Forbes articles on this now with social media, I’d say about 3 to 5% of the population is starting to hear about infinite banking. Be your own bank, rich persons, Roth. Those are all acronyms to the strategy. IRS code section 7702 plans. They’re starting to become more popular, but it’s been very slow.

In the pyramid of being your own bank, the worst thing you can do is have your money in the bank, at least the bulk of it. I, I get that a lot of people have kind of graduated into accepting the volatility of bitcoin and going gold and silver, is that a next level? That’s in between going into the bank and, and what you’re talking about? Yeah, that’s, that’s the midst. What my clients do is they dump them on the iul, then they buy gold and silver, and then they earn two streams of income on $1. So once you spend a dollar on bitcoin, you spend a dollar on gold and silver, it’s gone, it’s traded for that gold and silver or that percentage of Bitcoin.

When my clients spend their money, they’re still earning interest on it until they die. That’s the power of compounding interest. And if you want to Google the actual term, it’s called non direct recognition. Non direct recognition means that the insurance companies, when you, let’s say, have a million bucks in your account and you pull out thousand, they non directly recognize the nine hundred thousand dollar loan and don’t pay you on a hundred thousand, they pay you on a million. And that is because the loan is from the general account of the insurance company, because it’s A mutual company, A Plus rated, survived Civil War, World War I, the Great Depression, World War II.

Never needed outsourced money. The 900,000 comes from a general account of the insurance company as a loan and liens against your death benefit. So let’s see, you had $2 million of death benefit, now you have a $900,000 lien. So now if you die tomorrow, your family gets 1.1 million tax free. It’s also called accelerated death benefit rider. Gives you the ability to accelerate your death benefit and use it while you’re still breathing. Okay, it’s starting to click with me now. It’s a way that you get loaned money at very low interest rates. So effectively you’re being paid by this.

But on the other hand, negative interest rates, a way to avoid probate and all the taxes that happens when you die. Yeah. So not even low interest rates. Historically, whatever the market earns, minus 5% is profit. So if it’s averaging 14%, which it is over the last 15 and 20 years, and they’re charging a 5% loan rate, which is much lower than you can get on the street right now, you have a positive 9% rate of return. So in that $900,000 example, you’re making 81,000 a year of interest, opposed to paying $65,000 a year in interest.

Huge paradigm shift for my clients to build wealth faster and to be more protected. Yeah, I’m Just thinking I’ve got a relative. I’ll be honest, it’s my wife. She managed tens of millions of dollars of budget when she was in charge of this corporation. And I got to tell you right now, telling her about this without having detailed information would be like speaking Russian to her. And she doesn’t speak Russian. So how, how do you communicate the process to people off the street that say, I’m curious, I want to find out more. It’s a little complicated for me.

How do you handle that scenario? Two ways. I have a YouTube video called Infinite Banking that I can email you. That was with another podcaster who actually went through my presentation. Questions were asked, questions were answered. Or you can meet one on one. I’ll do a presentation. One of my. I’m a national brand, so I have, I’m licensed in all 50 states and I have agents almost in all 50 states. So either you meet with me or meet with one of my top people. I’ve trained on this strategy because I’ve been doing this for a long time.

And there’s a, there’s a, there’s a presentation, then we build an illustration, then if you like it, we tweak it and then we do an application. All of it’s done online. So Covid, as horrible as it was for the business side, has improved my quality of life tremendously. Because now my outreach is, if you have a computer, sure, I can, I can work with you now. So I went from maybe 1400 clients to almost over 4, 000 clients in five years. And it’s, it’s been pretty. And I have billions, billions of dollars protection rollovers. You know, look me up on Google.

I’m 4.9 star rated with a 11 star rate rating from a competitor who doesn’t like me. So I’m technically five star rated. He didn’t write anything, but he’s so like, what are you complaining about? But I digress. So I have a perfect record and Right. Men lie, women lie, numbers don’t lie. So just look into who I am because you need credibility if you’re going to roll over your life savings. You’re gonna need credibility if you’re going to be going against the status quo, if you’re gonna be going against what everybody else is doing in Uncle Sam, you got to make sure that I’m reputable and know what the heck I’m talking about.

And then once you understand that I could prove to you beyond a reasonable doubt that everything I’m saying is true, it’s Been around hundreds of years. This isn’t like some new bitcoin that just started 20 years ago that you’re like, oh, is this real? This has been real for hundreds of years. And it’s a trillion dollar industry with a T. So when people actually understand it, they say, oh, my God. I. There’s two things I hear. This sounds too good to be true. I wish I did this when I was younger. That’s. If I had a dollar for every time I heard those, I would have a million dollars.

That’s amazing. I would imagine some people try the tiptoe strategy, though. They believe it’s real, but it’s so foreign in their thinking. They tiptoe in with a marginal investment. And do you find that people do that and then they expand it as they get confidence, new people drip in. If I’m referred, because I work with a lot of estate attorneys and I work with a lot of tax attorneys, and they send me business, those people just roll the whole thing over here. 15 mil, there’s 10 mil. I’m working on a $200 million deal right now and a $400 million deal right now.

Referred from estate attorneys. Those, they come in, they’re like, if your name’s on Barry, yeah, let’s do it. It’s harder when I don’t have a referral link because you don’t have that person to vouch for me, to say I’m a good person. Even though you can look online and there’s thousands of, of positive things about me on, on the Internet. But yeah, if somebody’s weary, let’s say you have a million. We could start with a hundred thousand, start with a couple hundred thousand, see how it goes. But at the end of the day, I could just show you about 75 emails of the last three months that people are saying, thank you, Joe, while this tariff war is going on, and I would have been panicking my butt off down hundreds of thousands of dollars, I haven’t lost a penny.

And what people don’t understand, yes, you want to make high returns, but what’s more important is covering downside because the average investor doesn’t know this, you may. I’m going to test you, Dave. If I had an investment account that lost 50% year one and earned 90% year two, would you want to invest in that fund? If you were around two years, you’d be ahead of the game. But no, you wouldn’t. Why not? If I have a hundred dollars and I lost 50%, I have 50. Oh, then you get 90% of the 50. 90 of 50 is only $45.

I only have $95. No, I wouldn’t do that. No. But do you see the first reaction? Yeah, the, unfortunately, because the education system in the United States of America is So poor, we’re 27th in math out of 30 countries. Number one spending country in the world. The average American teach that. But my error was not adjusting my base when you gave the example. But I, I hear what you’re saying and I’m telling you, you have my curiosity up. I mean it’s up there. But I gotta tell you, I know my audience. Without a referral from, you know, their trust accountant or attorney, like you said, people are going to tiptoe in.

How long? When you see people tiptoe in, how long does it take them to get it? And they go, I gotta go all in three meetings. So about three hours. Three hours. Oh yeah. Because the first one is getting to know each other because I’m auditioning to be their financial advisor for the rest of their lives and most likely be involved in their children’s lives when they die. I got to be the one delivering the death benefit. When they’re sick. I’m going to be the one making sure the long term care payments are coming in. So I’m not here to sell a product.

My strategy works and it has worked for over two centuries and I have been doing it for over two decades and I have zero, zero complaints. Yeah, no, I, I mean that’s, that’s managing billions. Billions. Not one, not one complaint. No, I hear you. I see in the bio here, the endorsements, they’re, they’re fantastic. I work with Fortune 500 companies. I work with professional athletes. I’m on all the draftkings commercials nationwide. I get to play basketball with the Boston Celtics. I get to play baseball with the Red Sox. I gotta become your friend. I’m a former college basketball player and coach.

Yeah, just, I just got back from the Bahamas. I’m going to Aruba in, in three months. I, I, you know, my, I have three children. I coach, I’m married. I’ve been with my wife since I was 18. Been married since 22. I’m just gonna be 41 in July. My kids, I have a junior, he’s, he’s graduating sophomore today. I’m of a junior in high school. I got a, an eighth grader. You know, as of today, I have a fourth grader daughter. As of today, two boys and a girl. My daughter’s on the USA Tap team. I get to go to Prague and compete against other countries.

That’s awesome. She’s 10 and she’s nasty. She won title the two years she’s been doing lyric. She won the number one dancer in New England. So it’s, it’s pretty cool. It’s a great life and, and God has blessed me. God has given me the ability to go out there and help people do the right thing. People are better off after they’ve leave me than before they meet me. So yeah, the first meeting, we have to get to know each other. I got to see if I want to work with you for next 20 years. You know, there’s, there’s people that I fire that I don’t want to work with.

I, if you can imagine the residuals on 3, 4 billion dollars. I don’t have to work. So I’m just trying to, I’m just blessed trying to go out there and help people. That’s all I’m trying to do. Joe, what do you do? I want to ask you a technical question, like I’ll use myself an example. Most of what I own is in a trust put together by a competent attorney that we like and we feel he’s good at what he does. How do you handle existing trusts? Easy. My, my strategy has. Both of my strategies have, are compatible with trust.

Inside of a trust. You have what? You have a grantor, you have a trustee, and you have a beneficiary. And by law that avoids probate. What about an annuity? Annuity has an owner, an annuitant and a beneficiary. What about life insurance? It has a owner, an insured and a beneficiary. Isn’t that similar to a trust? Because it is. Is it? It uses the same fiduciary. It uses the same fiduciary where avoids probate. So if, if you understand that like I, I work with trust all the time now, if it’s, if it’s irrevocable, then I’d bring in an attorney and, and we can still use it as long as you’re the, the trustee.

But if it’s re. Revocable, you can move those like that. I mean a revocable trust, to be completely transparent with you, is almost worthless because it doesn’t help you on the five year look back for long term care. It doesn’t help you for any type of a lawsuit. Right. It’s not an llc. You still own it, you still control it. So the only thing a trust does avoids, avoids probate. Both of my strategies do that for free. So you know it’s built in. So you don’t have to spend $15,000. Unless you have an estate tax problem, you’re worth over $7 million.

Then we could talk. But the average American doesn’t know any of this. They don’t know what a will is, they don’t know what a trust is. I meet so many clients. Oh, I have an eyelid trust. How much? What’s in there? Nothing. What’d you pay for it? Fifteen grand. When did you, when did you buy it? Eight years ago. Why’d you buy it? I don’t know. My account. My attorney told me I should have one. I’m like, what? So you know, you have to make sure you got a plan, right? So you need to work with somebody.

If it’s not me, you need to work with somebody like me that has a lot of credentials, that has a lot of success, that has a lot of clients, because that’s proof of concept and, and can do these strategies for you. How often do you take the distributions? Is it annual or how does that work? It all depends. So there’s, there’s a, there’s a growth annuity, which is deferred. Then you have an income annuity which you start taking 30 days after issue and you take that once a year or monthly or semiannually or quarterly, everywhere. But most of my clients take it annually because why would you let the insurance company hold your money at 0% interest? Take it, take 100% of it, day one, invest the other 11 months into like a CD and then take out, you know, or a high interest bearing account.

So most of the time, unless you’re silly, you take it out annually, right? So you’re paid once a year from your assets, which you have to do anyway for RMDs, and then, and then you have the ability to now build yourself long term care. Now the risk is after I do, all this is, are you insurable? I can’t tell you. I have easy, easy, over a billion dollars that people are begging me to put in the account that like, yeah, you’re uninsurable, you can’t do it. So, oh well, I have high blood pressure, I’m £400, I’ve diabetes, I just had a heart attack, I have cancer, I have DUIs.

I’m in rehab for, for a drug addiction or alcohol addiction. It’s like insurance going to be so hard to touch you so you can use your children. Like all three of my children have these accounts right, when they were born. So they’re up a lot tax free, mind you, with no risk, but so you can use your children. So a lot of my clients use their children. But ideally you want it on yourself because you want your policy to protect your spouse. You want your spouse’s policy to protect you and then you want your policies to protect each other with the long term care.

But if you can’t get insured, which probably over the age of 65 or probably close to 30, 30% of Americans are not healthy at least. Right. If, if not more. Right. Because we’re a really good healthy society. So then we go ahead and use the children. Well, why would I use the children? Or if there’s one healthy spouse, which most of the time there is, I say 90% of the time one of the spouses is healthy. We put the, we put the, the life insurance on the healthy spouse, we use the death benefit as the long term care for that healthy spouse that we over fund it and we use the cash value tax free for the unhealthy spouse.

Right. So now you basically have two values. You have your benefit value and if your cash value, the cash is for the unhealthy one and the benefit values for the healthy one. And that’s under one policy. It’s amazing. So walk us through how people find out more. Get started. So if you want to, my books, my articles, my magazines, everything for free. There’s no cost. You’re not going to be put in any type of email scam list or bombard you. I won’t even bother you. Right? I don’t, I work with people that want to work with me and I work with people that I want to work with.

So if you want to do that, just send an email to joe ironhawk financial.com and just say info. You know, I heard you on the Common Sense show, I heard you talk with Dave. I get a lot of these emails. I do about one to the two of these podcasts a day. I’m the face of Iron Hawk Financial, but I have a team. So you send the information out. We will get in contact with you. Most likely will be from me depending on your size of your estate and assets and, and you know, so on and so forth.

I may refer you to one of my partners or you might work directly with me and it’s free. You will never ever, ever, ever get a bill from me, ever. And I could spend 20 hours with you doing estate planning, setting up trusts, moving money into IRAs, moving money into annuities, setting up long term Care strategies, that all that’s free. The only thing you would pay for is to pay your accountant. If we have to set up a, or your, or your estate attorney, you have to set up an eyelid trust or set up a trust or something for, you know, legacy planning.

That’s something that I can’t do, I’m not a lawyer. And that would an existing trust handle that? Yeah, I mean you wouldn’t even need to pay for it if you already have something set up. We could just use that, that has a date of birth, a tax id, you know, that we could definitely make that the owner, make that the beneficiary, get it out of your name, you would still be the insured, but it’s not in your name. But most of the time you don’t have to do that, you know, unless you’re filthy rich and we’re putting it in an irrevocable life insurance trust, an ILIT trust, I L I T, then we would just, you have you be the owner.

Because if it’s, if you die with a trust or in your name, it still goes into your state. So it doesn’t matter. You know, it’s sort of like if you’re, if you’re, if you’re a self employed and you have an llc, if you’re paid or the LLC is paid, paid, it’s still the same money, it’s gonna be taxed the same way. Makes a lot of sense. Yeah, I hear what you’re saying and yeah, you think the kids aspect for elder people is going to be huge. And I’m thinking, I’m thinking of the people I know. There usually is one healthy spouse.

I think you’re right about that too. And you say it takes three meetings to get this going. Well, I mean I walk down the hill with my clients. This isn’t a high pressure sales call. Sure. This is we, we meet, we talk, we see what is your goals, what’s your time horizon, what’s your risk tolerance, what’s your assets, what you know, do you have any protection if you have term insurance, what are you gonna do when it expires? So these are the things, the questions I need to ask my clients. We need to get to know each other.

I don’t want to get sued. That’s how I maintained my five star rating minus the competitor one review and my A plus rating, you know, with zero complaints on the better business bureaus because I’m thorough. I don’t just sell crap to sell crap, you know, so a lot of Agents do. Unfortunately, a lot of financial advisors sell the highest commissional crap and they don’t care. And the, the company doesn’t make sense. They’re not the best company, the product’s not the best, but it’s the highest payout. I don’t do that. I give my clients a plus rated mutual, 130 plus.

I have one carrier, National Life Group, 178 years in existence. You know that I give you the best strategy there is, but period. So that there is no, oh, you didn’t tell me this. Oh, I didn’t know. There’s none of that bs. You know exactly what we’re doing, why we’re doing it, how we’re doing it. And you have to say that back to me before I’m going to get you that strategy. Because I have clients are like, oh, I’m referred to you just, Bob’s doing it, I’m doing it. And I’m like, he’s like, I don’t want to waste time, just get it done.

And I’m like, I don’t think so. I’m not getting sued. So let’s sit down, let’s have a meeting, half hour. I mean if you, if you want to just say, Joe, I, I, you’re cool, I’m cool. I looked you up, you’re awesome. I can afford this. Just do the presentation. It could be a 15 minute meeting, but at the end of the day, I want to have a good relationship with my clients. I’m Italian, right? So my clients are my family. Not to sound corny, like, oh, Lombardi’s Pizzeria, you’re here, your family, forget about it. You know, like that’s just how I am.

I was, I was raised blue collar, even though I’m in a white collar collar career. And I just want to help people, I just want to provide value. That’s it. I think that’s admirable. I think this applies to all ages. But is there an optimal age for people to come in that you find they get the maximum benefit? Is it the earlier the better? So if you are looking for accumulation earlier the better. If you’re looking for distribution, you have to be over 59 and a half. Unless you already have my strategy, which very few people do.

So it, it, it depends what stage in your life you’re in, right? If you’re young, you don’t give a crap about long term care. If you’re older, you don’t give a crap about college planning. Your kids all, are all older. So it all Depends on what your goals are and what you’re trying to accomplish. So it’s really, the sooner you, you set up a plan like this because of compounding interest, the better. So you rather do it, you know, yesterday because once you find out the strategy is real, you will say, damn, I wish I did this before.

I hear it every day. Oh, if I just knew about this 20 years ago, the 3,4 million I had in my 401k. I want to be paying the government $2 million in taxes when I start taking distributions. Like, oh my God. And that’s if taxes don’t go up, which they are. But that’s a whole nother conversation. How the rich hide their money. Don’t pay tax and you can too. If I were to write a book on this interview, that’s what I might entitle it. I might steal that. Joe, this has been fantastic. It really has. Ladies and gentlemen, I need to say this too.

Point of disclaimer, I don’t work for Joe. I make no commission on this from Joe at all. This is just a straight interview that I typically do on the show. But I have to say I’m more than intrigued. And Joe may be hearing from me. I got to go talk to the commander in chief and have her watch this with me. Joe, what’s the name of that video on YouTube again? So, Infinite Banking, Ironhawk Financial. I think you can find it. If not, just send me an email. I’ll send it directly to you. And that email send me an email is because I send out a lot of email, so I don’t want it to go to spam.

So if you send me an email, and again, I’m not putting on any type of email campaign on my life, you’re not going to be bombarded. But if you send me an email to Joe J O E at Iron like the metal hawk like the bird, financial.com, all one word. Joe@ironhawkfinancial.com and just say hi, info. Heard you books. What? I don’t care. I just want that link so I could send you a lot of information without being spammed or flagged. No, I, I think that’s good. You’re probably going to get an email from me. And ladies and gentlemen, I’m telling you, I don’t make a commission on this.

People are going to say that when they message me. Oh, Dave, you’re just trying to get money out of it. No, I’m not. I, I’ve heard about this and I didn’t know much about it. And now I’m, I’m telling you, I’m really intrigued. And you’re saying a lot of professional athletes do this? Oh, my God. Yeah. I mean, I, I sign NDAs, ncas, so I can’t list them all. Oh, I know you can’t talk about all your clients would come meet me if you know some of my clients, but some of them you love, you see every day on tv, but it’s not, it’s, you know.

But yes, all the ultra wealthy people, I mean, where else is the trillion dollars coming from? Where. If it’s not coming from the, from volume of the middle class, the high middle class even know it existed. Where’s it coming from? Broke people is not going to make a dent. It’s coming from the ultra wealthy. That’s interesting. Well, you know, we’ll know how saturated you are when I watch NBA playoffs tomorrow and we see Joe Lombardi shirts. My goal is to have a Super bowl commercial by 2030. Oh, really? Yep. That’s my goal because my. I coached nafl, the New England Football League, Connecticut Bearcats out of West Haven, Connecticut, and we won two NFL championships.

My grandmother says that my grandfather was brothers with Vince Lombardi, the Super bowl champion. And I coach both my boys in sports that are, you know, 15 and 12. So yeah, I have some connections and I found this out by talking to billionaires. I worked in New York City in Times Square, Wall street, and I worked with this guy named Mike Lynch. He had his own radio show called Money Talk on wicc. And I was his partner. Meaning I found opportunities, I brought it to him. And for two years back in 2008, 2009, going into 2010, I just sat there and I listened and I learned.

While he’s moving 50 million here, 30 million here, setting this vul up because MetLife used to sell vuls when I used to work for Barnum Financial Group, MetLife. But IULs now are even better, way better. Because vuls you can lose, iuls you can’t. V is variable, I is index. I digress. So I literally was just sitting there learning everything. And he was working with very wealthy people. I met them very to do people, people we saw on tv. And I got into that world and. And I made a lot of relationships, I made a lot of friendships and a lot of business came from it a lot.

And then I said, you know what? The average American doesn’t have this. So then I started working with blue collar people, making less money for me, but more for them. And I Got on the COVID of the who’s who and building construction for Connecticut and Western mass, summer of 2021. So you’re like, why am I on a building and construction magazine, right? And then I got on to the top 40 under 40 in the country, the top 40 advisors in the country under 40 years old. I was on the COVID So when you, when you get to that level, right, and you have those relationships, people call up and say, hey, I know you’re the man.

You’re handling my money. You want to be on this magazine? I was like, sure. You know, and the relationships are everything. Your human capital is everything. And I have a lot of it. And I know a lot of stuff that the average person doesn’t because I in those back rooms talking about those deals and it’s, it’s pretty cool when I’m able to bring most of it to light. Can’t talk about everything but bring most of it to light to say, hey, listen, this is real. You don’t have to believe me. Just Google it and look it up and I direct you where to look.

And you’re like, oh, it’s right there. It’s like, yeah. Why is it hidden? Oh, because the, because the 401ks and IRAs make the government over 10% of the gross domestic product. And if, and if the masses learned about this, the debt would go even higher. So they, they want it like, you know, if you want to work with a billionaire or a millionaire, you’re cool. But don’t go after the masses. So that’s where I might have a visit. A knock on my door saying, joe, you need to stop your advertising, which hasn’t come yet. But I’m not that big yet.

I only have 3,000 clients. There’s 300 million Americans. But I’m growing. And that’s my goal, is to be the Dave Ramsey of liking annuities and life insurance. Because he’s, he’s the ameriprise agent Buy Term Invest the difference. That’s who Dave Ramsey was. So he for decades would just talk crap about annuities and iuls when in the last 12 months over 500 billion with a B billion dollars has gone into annuities. So. So they’re not your grandma’s annuities that can lose or high feed don’t have no returns. These things are churning. They’re free. You know, I’m going to speak to you in coaching language here.

I used to be a high school football and basketball coach and I was a college basketball coach for 10 years. So I’ll speak to you in coaching parlante football. This is the dawn of run and shoot. It was in football with finance. That’s how I look at this. This is obscure. No one knows it, no one knows how to defend it. And it’s pretty amazing. Let’s just hope the government doesn’t change the laws. But since billionaires are involved, I doubt that they will. They can’t. And I was a lobbyist. I have videos and pictures of me being in the White House before, before the shrection, me being in the White House after 5 o’ clock because I was part of Guardian when I worked at Guardian Life and AALU.

They’re a lobbyist organization to keep IRS code section 7702 tax free. So every state has lobbyists that if you’re a high life insurance or annuity producer, they come to you and say, hey, you know, I’m part of the Million Dollar Roundtable MDRT Leaders Conference and I get to go to the White House. I haven’t been in years, I’m just too busy. But they always call me and I just donate. I’m like, here, give the money so you can drive somebody down there or fly someone down there. This is interesting for those who stayed through the finance and your eyes didn’t glaze over.

I think you see the benefit here. Joe, we’re flat out of time again. Would you give out your email one more time please? Sure. It’s joironhawkfinancial.com and just write an email says hi and I’ll send you everything absolutely free, no cost. Joe, thanks so much for joining us. Look forward to having you back. I appreciate you, Dave. Look forward to having a meeting and meeting your wife one day. You probably will. Thanks, Joe. Take care. You got take care.
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