M.C. Laubscher is the host of the Cash Flow Ninja podcast, cash flow specialist, and real estate investor and educator with Producers Wealth and Producers Capital Partners. On today's show, we speak about the infinite banking concept, the current state of the economy and what's ahead, where M.C. is currently keeping his money, captive insurance, and much more!
M.C. read Rich Dad, Poor Dad by Robert Kiyosaki and shortly after he purchased his first property. As he self-managed the property, he saw the power of cash flow and became obsessed with increasing cash flow. He soon began to wonder how repeatable this was, and this led him to where he is today.
The infinite banking strategy reclaims the banking function within your own life. Infinite banking puts you at the center of controlling the cash flow. M.C. found that he couldn't grow his real estate portfolio without a solid foundation and team in place. This includes a lender and a bank. M.C. uses the infinite banking concept to control this aspect and remove another moving part of getting a deal done.
Essentially, you can structure and position assets very efficiently with easy use of collateral. Loans can be taken against everything from gold to cryptocurrency, with these assets used as collateral. These assets get to stay investing and continue to grow. Earnings on this growth are tax-free.
Recession Resistant Investments
M.C. believes we're still in the beginning stages of the effects of the Coronavirus crisis on the economy and workforce. In the midst of the largest wealth transfer in history, many people are positioning themselves to where things are headed. The virus likely won't just end and allow everything to move forward as the world before. If you're a business owner, you need to digitize your business "yesterday". The trends that were already in motion were sped up almost a decade. Digital strategies must be incorporated into your business.
M.C. has turned his attention to gold, silver, cryptocurrency, and cash (dollars). It's important to be very careful with large amounts of cash in the bank - after the 2008 crisis, it is now legislation that you technically lend your money to the bank when you deposit it. There are more productive ways to use this cash, like with the infinite banking and captive insurance strategies. M.C. doesn't preach 'doom and gloom', rather, he is positioning in hard and innovative assets to be prepared for the next shift. For example, M.C. is going to be looking heavily into real estate in the next 1-2 years.
The Future in the COVID-19 Era
Exposure to gold, silver, and crypto is important to hedge. Cash on hand is still most important - M.C. is looking to increase cash reserves from 6 months to a full year of cash reserves. Many popular and experienced investors are moving this direction because it provides diversity, especially with an inflated stock market and a sellers market in real estate.
The job market will continue to change as large companies continue to shift towards remote work. Successful remote work will lead to expanded hiring into the global talent pool. People will continue to move from high-density areas such as NYC to other states such as Florida and Texas.
A captive insurance structure is an insurance company they you're creating outside of your business. This helps you ensure some of the things you're doing in your business. The premiums are deductible and the money grows tax free while remaining under your direction and investment strategy.
Learn more about M.C. and his work: https://cashflowninja.com/ and https://www.yourownbankingsystem.com/cashflow-video-series