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Social 333 Podcast
Using Your Whole Life Insurance to Purchase Other Investments | Devin Burr #social333podcast #72
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- [00:00]
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- [00:28]
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- [01:28]
Chris Bentley
Hey, welcome to the Social 333 podcast. I'm your host, Chris Bentley. Today my guest is Devin Burr. Devin, welcome to the show.
- [01:35]
Devin Burr
Thank you for having me, Chris. Appreciate you.
- [01:37]
Chris Bentley
Awesome. Tell the audience a little bit about yourself and what do you got going on.
- [01:41]
Devin Burr
So I teach people how to really take back control of their money by keeping more of it. I've learned that the more you keep, it's better than the more you make. So you can have a modest income, but if you're keeping the majority of that income, you're going to inevitably become wealthy over time. It just takes time. So I teach people how to take back control of their money, how to become their own bank. So I learned this concept during COVID and I came from a mortgage background, so I understood amortization and rates and volume of interest. I understood all that stuff and I learned the concept of infinite banking. And I was like, this makes so much sense. This is incredible. So I I learned the concept, I became an expert at it and as I started to talk about it, people wanted to do it. They're like, well how do I do it? So then I just figured, why don't I Be the guy that sets it up for him. So, yeah, it's been. It's been a fun run. Last four years, became one of the top agents in the country just from teaching what I do with the concept.
- [02:51]
Chris Bentley
Wow. We were talking a little bit off air about my journey with selling life insurance. And I started with Rural Financial Group, and then I went to American Classic Agency. And with me, I started out selling variable products because I got my license. And then I got into Iuls was kind of the hot trend. I noticed that in insurance, they have kind of trends with different products. They come up with some new thing or some provider pays more than another provider. And then we got into doing mortgage protection programs, which is basically like life insurance.
- [03:33]
But talk to me more about infinite banking. How does that work? Is that more like a whole life insurance?
- [03:39]
Devin Burr
Yeah. So I don't sell insurance. If anyone ever asked me, like, do you do insurance? I'm like, not really. I teach a concept of how to use an insurance policy. So infinite banking can be done with a bank account. It can be done with a HELOC on your house, it can be done with credit cards. It can be done with anything. It's just a whole life insurance policy, if it's structured correctly, is the best vehicle to use. And because it gives guaranteed growth, it's tax free. It's protected from lawsuits and judgments, so no one can touch that money. It's held by a company that's been in business for over a hundred years. So they're super stable. They know what to do with money. They've been to the Great depression, World War I, World War II, meltdown of 08, swine flu, bird flu, you name it. These companies are profitable through all that stuff. So that's where you want your money to flow. And then you just want to treat the policy like a bank treats money. What does a bank do with money? They get deposits from you, your neighbor, everyone else, and then they take those deposits and they lend it to other people. Right. So they got to pay you interest, let's say 1%. I know that banks don't pay that, but let's say they do. They pay you 1%. They lend it at 5. They just made a 4% spread using your money. So that's all I do is I teach people how to do that same thing with a policy. Because of the creditor protections, because of the guaranteed growth. And if it's a guaranteed vehicle to grow, you're guaranteed to always have more money that you can use to become your own bank.
- [05:13]
Chris Bentley
Yeah, that's just a. Like a loan against the policy situation. Yeah.
- [05:17]
Devin Burr
Yep.
- [05:18]
Chris Bentley
I've had some people. What they do is they'll get a huge policy and then they'll start self funding it. So it's just like you're talking about the amortization stuff. They'll have huge chart when in their policy, and you could see by whatever month, you know, where your policy is going to be in terms of cash value. And then they'll borrow out of it and actually, like, buy homes. I've seen a guy do like a whole Airbnb Airby empire just by taking money out of his life insurance policy, which is really, really cool. So somebody was to think about doing that. I know there's like a lot of stigmatism around life insurance. We're kind of talking about that too.
- [05:58]
You know, if somebody wanted to get started and let's say that, you know, they're a W2 employee, you know, they're stuck behind a spreadsheet all day because I used to be one of those people, you know, and they're like, hey, look, I know there's more to this than, you know, just getting my 401k money and slaving behind an Excel spreadsheet. How could they build wealth? Like, how could they build it.
- [06:26]
To a point where they could step away at some point?
- [06:31]
Devin Burr
I think the biggest thing that people need to change is they need to save money. If you can't save money, you can never invest money. So you have to start looking at your lifestyle bloat. And what I mean by that is when most people make a little more money, they go get a nicer car, they start eating nicer dinners, they start buying nicer clothes, have that lifestyle bloat, go back down, see where you can save money. Put that away. It should be at least like 15 to 20% of your income. That's at least what you should be saving. And that's the first step to infinite banking is you're saving money in a vehicle that again, is guaranteed to grow protected from lawsuits and judgments. So you're saving money there. The more you can save, the more you have to invest. And you'll never save yourself to wealth, but you have to save in order to have money to invest. You will invest yourself to wealth, that's for sure.
- [07:26]
Chris Bentley
I know one of the biggest things for me, because what I would do is I would start a company and then the company would, for whatever reason, go bankrupt. Like, the economy would turn bad or I just did something wrong, or the leads that I were getting. They were bad and I didn't have the money. I ended up having to get a job and I've had to basically scrap everything. Meaning, like, fire the girlfriend, you know, bring my lunch every single day. No going out, no hanging out with friends, no nothing. I took it down to the bare minimum because I was broke, you know, So I was like, look, like I gotta do something. And I think even like just kind of you talking to me about it.
- [08:14]
I ended up doing a lot of the bloat myself because I'd be like, okay, cool. Like, I got a little extra money I'm already investing. Like, what do I want to do now? Okay, well, like, I'll go out and party. And then you go out and party. Then you meet a girl, and then you go meet a girl. And then before you know it, like, you and her are doing expensive trips and stuff like that. And like, all that money could have been kind of put to the side, invested for different things.
- [08:38]
Devin Burr
Yeah. And the sooner you do it, the better. Like, I'm teaching my kids how to start saving and investing. My daughter's 18 this month.
- [08:46]
Chris Bentley
Wow.
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Devin Burr
And she's had a job for two years. She gets her paychecks. I automatically go into her account. It's a joint account. And I take 20% off the top. So I'm forcing her to learn how to live off less than what she's bringing in. I take that 20% and I put it into a policy for her. An infinite banking policy. It's guaranteed to compound and grow. She can use it for whatever she wants, the cash value. So we bought her first car using it. She.
- [09:15]
She pays the payment back to herself that she would have paid to a bank. So let's say I think the payment's 400 bucks a month. If she would have got a bank loan, 400 bucks a month has got to go to the bank every month. That's principal and interest. Otherwise they take the car, right? Her credit gets jacked up. So she'd make that payment on time every single month. So if she's going to pay the bank 400amonth, wouldn't it make sense if she's her own bank to pay that to herself? Because now she's getting all the money back for the car, all the principal, plus the interest, she would have paid the bank into a place that's guaranteed to compound and grow tax free. So I'm teaching her how to do this. And I've got a younger daughter, Brooklyn, who's 2. We started a policy on her when she was 2 weeks old.
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Chris Bentley
Wow.
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Devin Burr
Compound interest takes time. So her policy, by the time she's my age, I'm only 40, still very young. I think I'm going to live well into 100 because the way I take care of myself, modern technology, I, I'm living to be like 150, all right. But at 40, I saw a long Runway. My daughter at 40, when you put a dollar into her policy, it pumps off like $7 in cash value. That's only at 40 because of the compound growth and the time you've given it. And when she puts that dollar in, it goes up by $7, $6, $7, whatever it is, she can use that full six or seven bucks without interrupting the compound growth because she's not using it, she's borrowing against it. That's it. So it's, it's what the wealthiest people do. They do not sell things. Most Americans, they want to sell something and get money because they feel like it's theirs. But now there's a taxable event. They got to pay Uncle Sam. Long term capital gains, short term capital gains, even worse because then it's earned income. All you do is you just buy assets that go up in value and borrow against them. There's no taxes on borrowing. Use that borrowed money to go make more, rinse and repeat. That's all I do is I teach people how to do that with life insurance because it's the best asset to do it with.
- [11:21]
Chris Bentley
Yeah, I heard or I watched some sort of meme about Rockefeller and they made a bunch of money and it was Rockefeller and Vanderbilt or whatever. And Rockefeller bought.
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Just a lot of insurance and put it into trust. And then those like they were the, the trust was the appointee or whoever it is, whatever how it works in trust. And then the trust always had money being generated. It was always coming out and they were always borrowing against it. They do like real estate stuff and buy stuff, different stuff. They always had money just kind of pouring in no matter what.
- [12:01]
Devin Burr
That's essentially what I've set up, just not that scale.
- [12:03]
Chris Bentley
Right.
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Devin Burr
I've got 15 life insurance policies.
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Chris Bentley
Wow.
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Devin Burr
So I've got some on me. I've got some of my wife, my kids, my parents, my in laws. Everyone around me is gonna pass away. It's gonna happen at some point. Hopefully my kids are way after me. Hopefully my wife is way in the future. But my parents are probably gonna pass away in the next 10, 15, 20 years. When that happens, the death benefit goes to my trust tax free. And now the trust dictates that that money has to purchase more policies on other family members that grows tax free. And then when I pass away, all that death benefit goes to the trust. Trust dictates it has to purchase more policies on my kids, their kids. All that money grows tax free. They can use it, the cash value for whatever, and then they're eventually going to die. Money goes in the trust tax free. So my family just gets wealthier and wealthier and wealthier tax free because of the life insurance and the trusts. Super, super smart. The Rockefellers have been doing that for generations.
- [13:08]
Chris Bentley
Would you say the biggest mistake right now with life insurance and purchasing it is more like the stigma or the fact that people just don't want to buy it or they just drag their feet or what do you kind of see?
- [13:20]
Devin Burr
I think it's a little both. Like a lot of people have the stigma that. And rightfully so, that the agent's the only one that wins. Because most agents will structure a policy to benefit their commissions more than anything. If a policy structured correctly for the client, the agent makes a lot less commission. Like our commissions are 60 to 90% less than a regular agent. And the reason for that is because we're giving a bunch of cash value to the client. So we got to do a lot of policies to make a lot of money, which we do. But we have the best interest of the client in mind. So most people just think, you know, hey, agents are just going to make a ton of money off this. Most people think they're invincible. Like, when I learned about life insurance, I was 34, and I'm like, I don't need life insurance. I'm 34. That's for old people.
- [14:10]
Chris Bentley
Right?
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Devin Burr
But I could walk out of here and get hit by a bus. Hopefully that doesn't happen.
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Chris Bentley
Right.
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Devin Burr
But if it did, my family's getting like $50 million. I can sleep at night knowing they're good regardless of what happens to me.
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Chris Bentley
Right.
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Devin Burr
You know what I mean? So I think people should look into it more, especially if when you put money in, you can use it right away and not interrupt the compound growth, like I was telling you.
- [14:38]
Chris Bentley
Do you work with a lot of real estate investors? Because like I was telling you that story where that guy just fools around with his IUL and just takes money out. Do you work more on like a bigger scale with real estate investors or.
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Devin Burr
I work with everybody. So really what I do is I put out content that drives leads to my team. So we've got six agents that are all practitioners of infinite banking. They have policies themselves. They use it in their lives. So they're not selling life insurance. They're just teaching the concept. And if it's taught correctly, most people just want to do it right. So then we'll just set it up. We don't ever sell, though. So I drive the leads, the team sets the policy up, team gets everything through to underwriting, gets the policy enforced, and then we help you start using it. And that can be mom and pop shops, business owners, real estate investors, W2 employees. Doesn't matter.
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Chris Bentley
So someone that starts a policy. I know because, like we're talking about real estate, not real estate, but life insurance. Someone who starts one. I've seen.
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100 bucks, 50 bucks. I've seen pay on death.
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Policies which actually pay really well. I've seen for myself. I have a flat half million policy and it's just a term. And I just invested. I looked to see what was the, what was the vul price? Because I had vul and vul. I think it was like 250 bucks for. I think it's more than that. I think it was like 400 bucks for.
- [16:30]
Quarter million policy. And then I was like, well, if I just split that, got a half a million and then did the term. And the only thing I missed and my coach at the time was like, why don't you do it differently? Was the return on premium. So, like, if I had down the return on premium, I would have gotten back or I would get back.
- [16:51]
All my money plus interest, obviously, and then whatever growth on it. And it would have been way nicer than, you know, but at the time I was like, look, at the time I was racing cars, so I was like, you know, take it or leave it. Like, you know, one day I'm just going to die a fiery death. You know, somebody's going to plow into me or my car explodes, you know, with nitrous and stuff.
- [17:15]
Devin Burr
Yeah.
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Chris Bentley
You know, like, you see all those tea like, like movies and stuff like that, and I really was never expecting it. And then as you got or as, as I get older and get closer to that 55 mark where my policy expires, I'm like, oh, crap, you know, I should have put more on myself. I should have probably done like a lot more differently. Like, I should have stacked it as I went, you know, been like, okay, Well, I have 200 bucks. Easily I can invest. So I'll just. Instead of doing something stupid, I should have just bought a policy.
- [17:48]
Devin Burr
Yeah.
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Chris Bentley
And that's kind of what I look back at like I could have done so much differently.
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Devin Burr
I mean everyone's heard it. Buy term and invest the difference. Right? Most people are not going to invest the difference. Yeah, they're going to go blow the difference. So if you put money into a policy, it's going to make about 5 to 6% tax free growth. You'd have to go make 8 to 9% before taxes to get that. And it's going to do that Steady yeti. You can use the money then to go make more. So life insurance isn't sexy, but you know what is? Making ridiculous returns because of the life insurance. Here's an example. If I've got $100,000 and I'm going to go do a real estate deal or I'm going to fund it, let's say someone needs 100 grand, I'm going to let them use my 100 grand for 15% interest. What's my rate of return?
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Chris Bentley
15%.
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Devin Burr
15%, right. I lent 100 grand, made 15%. If I take that 100 grand and put it in a policy, now it's making, let's say five, then I take the cash value, then lend it at 15%. How much I'm making?
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Sorry, five plus 15, right.
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Chris Bentley
20.
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Devin Burr
20%. But I didn't use my 100 grand. It's sitting here compounding and growing. I borrowed against it. So the only money I have in that deal is the interest I owe to the insurance company for using their money. It's about 5%. So if it took one year, I used 5,000 bucks to go make a 20% return.
- [19:19]
Chris Bentley
Crazy.
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Devin Burr
That is a 300% cash on cash return. That's sexy. Most of us don't understand it though, right. They think buy term, invest the difference. Term is the most profitable insurance policy that life insurance companies have because the likelihood you're going to pass away before 55, it's very slim or they wouldn't insure you. And if they did, they, they'd charge you an arm and a leg at 56 to get the same coverage for another 20 years. It's going to be through the roof. Life insurance on term pays out less than 2% of the time.
- [19:59]
It's a profit machine for the company. So that's why it's pushed by Dave Ramsey. Dave Ramsey makes money off of term insurance. Of course he's going to push it.
- [20:07]
Chris Bentley
Right?
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Devin Burr
Buy term, invested difference just doesn't work because people don't invest the difference and then they outlived the life insurance.
- [20:14]
Chris Bentley
That's the thing That I just thought about, and I just wish I would have done it different. I think about it a lot. Like, I'll go to the beach or something and be sitting on the beach thinking about it, and I'll be like, you know, if I had just done like the term and invested a difference and then got an extra 200, whatever it is, the next year. And as I start making more and more money, buying more and more policies, and at some point I could have just been like, okay, cool, I'm good. And then I could have taken that money and invested it in commercial projects, which I'm doing now. And then, like you said, it's like house money. I don't have to do anything.
- [20:54]
Devin Burr
And then the cherry on top is when you pass away, guaranteed to happen, the death benefit pays off any debt you might have had. The remainder goes to your family. So now your family has these assets debt free, and then they have a lump sum afterwards, tax free. Like, if it's structured properly. Life insurance is like the smartest thing you can do as a foundational asset, right? You're not going to get it and go become Elon Musk, right? You got to get it as a foundation. And then what you do with it after that, that's what gets good. So, like, to build a house, you need a foundation that's about six inches deep. It's a house. To build a skyscraper, you need One that's like 6, 8, 9, 10, 20ft deep. Why? Because there's more on top of it. So to have a big financial.
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Empire, you need a really good foundation. And if you put a bunch of money into life insurance, it's the best foundational asset you can get.
- [21:55]
Chris Bentley
Hands down, one of my best clients. She would buy insurance policies for kids every birthday.
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Devin Burr
Smart.
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Chris Bentley
And it would always be in her name. And it would be like small stuff, like 50 bucks a month, whatever it is. And I'd always, you know, I had to drive out to Baltimore and I'd always be like, you know, like, I have to drive out there. It doesn't pay very much, right? I drive all the way out there and I collect like, I don't know, like, 70 bucks or something, you know, like something so small. And I never really understood what she was doing. And I took one of. I took one of my coaches out with me on that appointment. And she was. And he was like, dude, like, she's a very smart woman. I was like, why? She's buying a bunch of policies? Like, she can do the same thing, the same amount of Money she can invest in the stock market. He's like, that's what you see right now, but you don't see that 20 years from now, right? And that's the thing that I missed.
- [22:50]
Devin Burr
And it's, it's, it's, it's one of those things. Just, it's, there's a lack of understanding I think people have as they think, okay, if I've got $1,000, what do I do with it? I could buy this life insurance policy or I could take it and put it into Dogecoin and go to the moon, right? They think I got to do one or the other. Life insurance you can put money in and because if it's structured the way we do it, it's instant cash value. So you can put money here, get all the benefits, protection on your life, guaranteed compound growth, protection from lawsuits and judgments. You can get that. Then use the cash value and go get this whatever it is. Dogecoin, xrp. Real estate. Buying and selling shoes. I don't know. You can do both at the same time. Just most people don't think that way. They think, okay, I gotta do this or that, I gotta buy gold or I gotta buy silver, I gotta buy real estate or I gotta buy whatever. You know, if it's structured correctly, you can do both at the same time. That's the power of it.
- [23:52]
Chris Bentley
Devin, if somebody wanted to get in touch with you, want to learn more about infinite banking, where would they go?
- [23:58]
Devin Burr
The best place is going to be probably Instagram. That's Mr. Burr, that's B followed by four Rs. B, R, R, R, R. And then Also on my YouTube you can find me there. But Instagram and my DMs, I make sure to get back to alt.
- [24:19]
Chris Bentley
Devin, I appreciate you flying out. Come join me on the show.
- [24:22]
Devin Burr
Of course, man, it's fun.
- [24:23]
Chris Bentley
Thank you. Have a good one.
- [24:24]
Devin Burr
Me too.
- [24:26]
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- [24:56]
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Hiring isn't just about finding someone willing to take the job. You need the right person with the right background who can move your business forward. If you want candidates who truly match what you're looking for, trust Indeed Sponsored Jobs With Indeed Sponsored Jobs, your post stands out to quality candidates who actually fit the role. According To Indeed data, 90% are more likely to be hired and trusted by 1.6 million companies. Spend more time interviewing candidates who check all your boxes. Less stress, less time, more results. Now with Indeed Sponsored Jobs and listeners of this show will get a $75 sponsored job credit to help your job get the premium status it deserves@ Indeed.com podcast13 just go to Indeed.com podcast13 right now and support our show by saying you heard about Indeed on this podcast. Indeed.com podcast 1313 terms and conditions apply. Hiring do it the Right Way With Indeed.