341: How Business Owners Turn Tax Planning Into an Asset?

And you referenced the four words from Cash Follows the Leader, capital, liquidity, income, and cash flow.

Which of those four, I'm curious, do you believe business owners understand the least? And what does that misunderstanding cost them?

That's such a loaded question to start.

I'm actually going to take those four words and combine two of them.

And we had no plan to go here.

Everyone listening, this is not even remotely scripted.

So Okay, how do I say this? If I were to summarize my entire worldview into one sentence and what we do with the owner's asset, is we actually specialize in turning income into cash flow.

In the US tax system, all income is taxable.

And actually the IRS has five different ways to classify it, active, passive, provisional, right? Not all cash flow is taxable.

And I'm talking to two guys who are the leaders in the field of infinite banking and definitely understand that last part.

So if you say the question was, which of these four words matters most or is most misunderstood? I actually believe it's the process of turning income into cash flow where the intrepid, the entrepreneurial business owner can change the game.

That's where I spend all my time thinking.

So maybe it's a cheeky answer to your question, Jason, but- And that's why I fell in love with the cash balance and the pension system, because you can take taxable income and turn it into cash flow.

And that's the alchemy of modern finance.

When you meet a successful business owner for the first time, what can you usually tell about their financial life before you ever see a statement?

It's oftentimes they're a passive participant in their financial life.

I don't know if that's the answer you wanted to hear, but

what I find

is- When we come into someone's life, we always get the following.

So somehow the way the world works, I don't call it manifestation, call it signaling theory, but someone comes into our orb when they're about to do the following.

And I know there's people just listening, but if you're watching, you get to see me gesticulate wildly here.

They go, I'm paying too much in taxes and I don't know where it all is.

And the fundamental tension that they're talking about is one of your favorite words, and I have reread your book, is the word control.

You get to a certain level of success as a business owner, and it's what you said.

Making money gets a little bit easier as your networks grow, your skill set grows, your specialty grows, but keeping it's the hard part.