Unveiling The Capital Avalanche Strategy | Episode #45

Welcome to the Money Insights Podcast, where high income earners come to learn wealth-building strategies that will take them from high income to high net worth, with your hosts, financial and wealth-building experts, Cristian Allen, and Rod Zabriski. Welcome into a very special episode of the Money Insights Podcast. Hi, everybody. My name is Cristian Allen. I'm here with my co-host, you all know Rod need the pods of briski. Rod, what's up, man? Hey, glad to be here. I am excited. It's going to be a good one. We're, although I have loved the version before we get started. Yeah. I'm proud. So my daughter, my oldest daughter, is going to be graduating here pretty quick. She and her husband both are finishing up their bachelor's degrees. It's a big accomplishment, Rod. You've got all sorts of family benchmarks that are happening, so congratulations to you and the kids. Yeah, both of these last two are for her. So Julianne, she's once also expecting you in October, so gosh, she's just getting it done across the crop. That's just what she does. Love it. Okay, well that's exciting. Congrats, my friend. Okay, I am excited today. Rod, we're excited because we are unveiling the Capitol Avalanche strategies that we've been hinting at for a few weeks now. Yeah, I have people telling me like, dude, what is it? Just let us know what's going on because we keep teasing. It's about time, right? Okay, so we're going to do a series. This is part one, which we're calling the unveiling, right? So we're going to unveil the Capitol Avalanche strategy, and then what we're going to do is we'll do a part two that's a deep dive. It'll look a lot like our investment optimizer deep dive, where we'll get into the nuts, bolts, philosophies and all that good stuff. And then like we always do, we'll make sure that we have webinars, specifically a webinar for this strategy up on the website within the next week or so. So those are the primary places to go to learn about it. Of course, if you are interested in talking more about it, then you reach out to Rod9 and we'll be happy to have the conversation. Okay, Rod, so without further ado, let's get into it. I think the place to start is that the benefits, like the key core benefits. And the reason I like to start there is because I think most people like to know what they can get out of it first. And so we're going to focus on the results, what we can get from it. And then we're going to kind of back our way into some of the other things. We're going to second, we're going to go into an exam several example scenarios of places that it can be used. And then once we've done that, we're going to talk a little bit more about how it works. We'll let Rod do what Rod does and teach us the how it works. So that's kind of our outline for today. Is that sound like an okay way to go? Good for me. Yeah. Let's do it. Okay, so we've got five key benefits to talk about. Rod, first one, predictable double digit returns. What do you got to say about that? Yeah, you heard it right. And it's interesting. So often when we talk about double digit returns, predictable doesn't come with it. And yet this one, the kind of projections we're running, we're seeing consistently 13 to 16% tax equivalent returns. And again, we're not going to use anything like guarantees or anything associated with that. But it just really really feels like it's a safe and predictable result. The nice thing is is there's really easy ways to mitigate. So it's like, so like the upside is extremely high. And again, we're seeing historically double digit consistent returns, which is why we say, and let me just say like we don't throw that out there lightly. Like we realized that that's a huge statement to make. And it's and for that reason, it's something that we've been doing a significant amount of due diligence on over the last several months to make sure it works in all different scenarios. And just like everything else that we do, we'll we stress test it. We make sure that it works in good scenarios that obviously works in good scenarios. But we make sure that it works in the bad ones too. So that it's going to run and be successful as a strategy, regardless, particularly for anyone who's willing to go over the medium to long term. And we'll get into that more. Okay. So but the key there is that we are stating clearly that we believe that there's predictable double digit returns to be had inside the capital edge strategy. The second the second point is maximum retirement income. And we use that because this is in a from a pure long term perspective, probably the best way to create the most amount of retirement income. And I think I just have to hit the elephant in the room, Rod. I feel like I have to. And the elephant in the room is is that we have another strategy, the retirement accelerator that does something similar. And it absolutely is a retirement income producing machine. Now the benefit that we found here is that with the capital avalanche, we have more flexibility in terms of when we can use the income. And also how long, how much leverage we can get and over what time frame. So that additional flexibility is what's giving us so much confidence in the ability to create this maximum retirement income. So if if we were to say, okay, if we funded it the same way as we funded the retirement accelerator, we'd probably get a similar type of result. The benefit here is that we can fund it over a longer period of time, continually using bank money. And I know we haven't got into the how it works yet, but maybe just put that in the bank and we'll come back around to what was Christian talking about at that moment. And this might be a good time to talk about why we named it the capital avalanche. Oh my gosh, Rod. I forgot. I forgot. I feel I feel a little ridiculous because I like put that bullet point up there on the top to make sure that I hit it right out of the gates and I totally blasted it. So why don't you give it? You can give it a shot first and if I have anything to add, I'll do it. Yeah, as well. It was a little bit of struggle trying to come up with. It was a struggle. And you know, we thought about things like money multiplier or cash multiplier because of this. Like you said, we're using leverage and that helps us multiply the effect of the dollars we're putting in. But ultimately, we settled on capital avalanche. And while it might be a little bit cheesy, we get it. The idea was just that for me anyway, it's a visual, right? I see this avalanche instead of snow tumbling down the mountain. It's cash tumbling down the mountain coming into your pocket at just the right time when you're ready for it. And it's crazy, Rod, because that's what I think of when I so so if you put a dollar into something and it can just for years and years and years to pour out money to you, like that's what an avalanche would do, right? Yeah. That's kind of the way I view this is I can put I can put even a small amount of money there and and allow that thing to just pour money out utilizing other people's money bank money for as long as I want to. And so from that standpoint, it literally is like an avalanche of money. So yes, we went back and forth on it a whole bunch and finally settled on the capital avalanche and we're going to roll with it. Yep. Okay. I'm glad you brought that up. So thank you. So back to our key benefits. We had talked about the first two, right? We talked about predictable double digit returns. We talked about maximum retirement income. We hit the elephant in the room. And now, Rod, let's talk about how it puts inactive money to work. Yeah, well, we we mean with a lot of people who have money just sitting in a usually a savings account or whatever, because they need emergency funds or they need business reserves or slash fund money or whatever. And for similarities, so in the investment optimizer, we often talk about that money that's that's sitting in the sidelines and in the savings account or whatever, that money is going in towards investments, right? So that's more what we would call active money that their people are are using up a plan to use for that purpose. In this case, we're talking about lazy money, right? Inactive money that's there. It's and it's there for good reason. It needs to be available when if and when we need it for those emergencies or for those payroll or business purposes. But we just leave it sitting in some place that's liquid and safe. But again, it's not doing anything for us. Well, what if we could keep put it in a place where it's still safe, it's still liquid, but it's instead it's producing this double digit return and turning into this future stream of income. Well, it seems like a no brainer, right? You nailed it. And I think one, you know what I'm going to do is I'm going to do a quick comparison to another place that we would generally encourage people to put lazy money. And that's in the it's in the investment optimizer from a concept standpoint. Now, you delineated the difference between active money that we're using to invest in the and lazy money that truly needs to be on the sideline for emergencies and other types of business expenses, those types of things. But what makes this unique and different from a from as a holding pot for that for those dollars is that we're going to be able to hold the money, keep a significant amount of liquidity and leverage it to create the return. So if if my money is in the investment optimizer, let's just say I leave, you know, kind of a chunk of money at the bottom of my of my policy that's just there for emergencies, those kind of things, I can do that. And it's a really great place to leave lazy money because I can generate, you know, a four or five percent return consistently. I know that it's doing something for me. Yeah. Well, the difference here and the reason that we're putting this out there is because we could do something very similar, except for here, because we have the ability to add the leverage component, we could generate a double digit return with that lazy money rather than the say five percent return that we will get in the investment optimizer. Yeah. And so I think it would be fair to say that it's maybe like somewhere between the investment optimizer and the retirement accelerator in the sense that we're using a similar vehicle, right? Let's just say we're using these kind of max funded over over funded life insurance policies to inside of the capital avalanche. But it's not as much the active investing money that we're using for it, but it has more liquidity than we get and the retirement accelerator side. And so kind of falls somewhere in between, right? Yeah. Yeah. Yeah. That's a great point. So for, so again, for money that we have to have on the side line anyway, that especially if it if we're planning to keep that there for emergencies and things like that, then it becomes a question of where's the most effective place to put it? And then of course, we can kind of look at that together and determine which makes sense. But I wanted to kind of give a reference point because obviously we talk a lot about using the investment optimizer as a place to store cash. And so I wanted to make sure we can kind of delineate pretty clearly what's the what what we're talking about as a differentiator between why I would leave cash on the investment optimizer versus why I might consider utilizing the capital avalanche for my lazy money. Yeah. And we'll get into that a little bit in our example scenarios as well. Really help us to see the difference. Okay, Rod. So the those are the first three key benefits we have two more. Number four is death benefit for estate liquidity. I know everyone's favorite thing to talk about. No, I say that jokingly, but it's it's one of those things that we all know is really important, but just doesn't that fun to deal with and talk about even when it's leaving a legacy to our family. Like that's more intriguing, but we still have to talk about death to get there. So, but we don't want to devalue just the incredible insurance benefit that comes from having a death benefit that can be used for estate liquidity. And again, for most of the people that we talk to, not not necessarily everybody, but for most of the people that we talk to, there is a very high likelihood that they're going to want and potentially you could say even need liquidity from an estate perspective because it's not going to be difficult for a lot of you to get over those the numbers. Even if they don't, even if they stay where they're at, they're not scheduled to, but if they did, if they were, we still have many, many of you who are kind of in that place where you'll be needing and wanting to have liquidity from an estate planning perspective to specifically deal with taxes, estate taxes. And the cool thing is you can you can put the money in the capital avalanche strategy within mind that things we talked about first, the double-digit returns, the income. Yes. That kind of thing. And then when you get down the road and you say, oh, I have these other, I've been able to be successful with the other investing I'm doing or I sold my business and I have, you know, at whatever. And I don't need it for the income purposes. And then it turns a little more into the death benefit state. So in other words, you don't have to make all of those decisions today, but it is a huge benefit for people to the extent that you don't end up taking as much income. Then you have this large death benefit that pays out and helps with those estate planning needs. Well said, well said. So it's a massive, ancillary benefit to the living benefits that we're focusing on through the strategy. And finally, Rod, I thought this one was really important because this is significant that it differentiates from traditional premium financing and that there is, we're doing it all without any outside collateral. So for reference points, one of the challenges that we have that we've had is that we have a lot of clients, a lot of listeners who kind of fit in that mid to high net worth category. And sometimes, well, in order to go into the traditional premium finance space, we have to be at a specific point, like most, most companies like to see a 10 million plus net worth, right? And while a lot of, certainly a lot of you are in that category, we have a lot of people who are wanting to get into the levels of leverage that we can utilize in traditional premium finance, but just aren't quite there from a net worth standpoint. So one of the valuable benefits that we get from the capital avalanches that because of the structure, and we're going to get into this here shortly, but because of the structure, we can create even more, guess that's crazy to say, but we can create even more leverage than we are in traditional premium financing. And we don't necessarily, we don't have to be over that net worth. And the reason is, is because the plan is completely self contained. It doesn't require any outside collateral. It's really just a mathematics and structural difference. And because of that, and really, you know, just to kind of throw it out there, the biggest difference is is the ability to have ongoing money, go money that goes into it for an indefinite amount of time. In all of the other premium financing strategies we've used, Rod, there's a definite timeframe that we're putting money in. So as an example, in the retirement accelerator, we put money in for the first five years, our own money, and then the next five, we've got money coming in from the bank, covering all of it. But then that's the breadth of the timeframe that we're doing. Traditional premium financing the same way, normally we'll do it for 10 years. Well, what makes this so unique is that we're able to do it for an indefinite amount of time, which each year that we continue to put money into it, working off of the arbitrage, it increases our leverage, but it does it in a conservative way, so that we're never getting, you know, out in front of our skis for lack of a better way of saying it. Yeah. Yeah. And in other words, the cash value that we're creating in the policy acting as collateral against the loan is always a bigger number than what that loan balance becomes. So we just always self-contained is the word you use, but it by itself covers all of that collateral need without having to reach out and impact any of our other assets. Yep. And it's really incredible how it does it. Hey, sorry for the interruption. Just wanted to let you know that you can take the F3 assessment right now over at moneyinsights.net. And after the short five minute assessment, you'll get specific recommendations that will help you move from high-income to high-network. Enjoy the rest of the show. So, Rod, let's let's move into some example scenarios next. Before we kind of get into probably what a lot of people are wondering now and that's okay guys, that's really cool. How does it actually work? But let's talk about the kind of primary examples we see as just being a place that people can use. So the first one, Rod, you said you were going to talk about more detail, lazy money. Talk a little bit about how the capital avalanche makes sense from a lazy money perspective. Let's use just a really specific example right because everybody has an emergency fund. Yep. The amount may vary depending on who we are and kind of what kind of things we have going on. But regardless of what that number is, again, most of us that's sitting in a bank account or in a money market account, something that is easily accessible, quickly accessible and yet is safe, right? Yep. Well, we've already kind of hit on those points that this is a safe place and but we still create some liquidity. And so I could literally move the money from my savings account, put it into the policy here for the capital avalanche strategy. It's a mouthful. It's a mouthful. Yeah. I could literally take the money that I have in my emergency fund, move it over into my capital avalanche policy and have most of the liquidity. So admittedly, it's not going to be 100% and immediately, as everybody knows, when we build goodness, as everybody knows, when we build these policies, we have most liquidity, right? 75% to 80% in that first year. Inside of this strategy, you'll get as low as maybe 60% of what you initially put in. Again, we'll get into more detail on that. But the point is that I still maintain the majority of the access, the liquidity that I have on those dollars. And so I can still use it. And I would basically access it in the same way as I would my emergency fund, right? If I have something come up, I need to tap into my emergency fund. I take the money and then I'm going to replenish it as quickly as I can, right? Because I need that to maintain that certain level of access and liquidity. And so it would work exactly the same way inside of the scenario. I would have immediate access to it. We call it checkbook access, right? Checked with those dollars to that equity that I have in the plan. I use it. I replenish it. It works exactly the same way in terms of flow of cash. It just so happens that it's in a place where it's earning me double digit returns while it's sitting there not being used. And so it's much more powerful than the just way that we normally think of it. Yeah. Okay. Well said. So again, a lazy money situation, especially money that has to be there for a special like a long term needs. Then having it utilizing it in conjunction with the capital avalanche makes sense. Because it's just going to generate a significant return while it's still there available and usable. Okay. So next one, Rod, we have a retirement income examples. And we want to give two quick examples here because it really works in a variety of ways. But maybe, maybe, why don't you hit on the lump sum example. And then I'll talk a little bit about how to do it as like a, you know, an alternative to traditional retirement planning situation. Yeah. Sometimes we're running into people who have some sort of liquidity event. Maybe it's, maybe they sold the property. Maybe they sold the portion of their business. Maybe it was an inheritance. And so they have this chunk of cash. And they're saying, Hey, I want to be responsible with this money. I want it to basically add to my retirement planning. And, but, and yet I want to do it in the best way possible. Well, this is a really good way for dollars like that where we can with a, with a single lump sum contribution to the plan create all of the things that we're talking about in terms of the return and the future income. And so when it, as it relates to specifically retirement income planning, it works in either way. And Chris, you can talk about the other scenario here in a second, but, but even in a lump sum type of scenario, we often run into snags when it comes to that, right? Whether we're talking about traditional retirement plans, there are annual limits as to how much we can get into the plan. When we're talking about things like the investment optimizer or retirement accelerator, it's money that's spread out over a period of time that we're funding and not all at once. Well, this is a, a great way. In fact, it's optimized at that level where I'm putting in a one time contribution. And then I get all of the benefits that we're talking about. And I think this is a huge benefit. I mean, how often do we talk to people who have money because of a liquidity event or some other reason, they don't want to be on the hook for putting money in for multiple years, but they want to just, they want to get the leverage benefit that exists inside the policy. So, in this example, of course, you could put it in in a single lump sum and get like rots at all of the value and all the benefits. Now, one of the great benefits here is that it's incredibly flexible. And we could do the exact same thing and have it and happen over multiple years. So, just like a plan that I might be contributing to, you could use it in lieu of a defined benefit plan as an example, right? So, we say a situation where I want to put in $50,000 a year for five years or $100,000 a year for five years, I could do that create multiple policies that are being initially funded by me the first year and then from then on out funded by the bank for the life of the policy. And so, again, by doing that, we're each year being able to create more and more benefit because we're utilizing this kind of concept of conservative leverage that self-contained all to our benefit. And while we're on this topic, it basically is like a Roth, right? So, and then we talk about this in a lot of other places. So, bear with me while I just clarify for anyone for whom this is is relatively new, all of the dollars going into the plan that I'm contributing to the plan are going in after tax. But then it all grows tax deferred, I don't have to pay, I don't get a $10,99 as the account is growing. And then ultimately when we take that out, it all comes back out tax-free. So, that's why I say it's not a Roth, right? Let me misunderstand me, but just tax-wise, it's tax standpoint like a Roth. Yep, yep. And that is important, right? And that's how we like it in general. We generally believe that taxes are likely to go up so if we can pay them now and get those long-term tax-free benefits, that's generally our philosophy. And this is no different. So, but there are some differences in the sense that we don't have all of those limitations and all the other stuff that comes with Roth. So, thanks for pointing that out. It's super important. Okay, so there's a couple of places that we see people looking to put money into real estate deals, but maybe struggling to do so. So, the next example that we want to bring out there is just kind of what we're calling real estate alternative examples. And like I said, there's primarily two places that we're seeing this. And one of them, based on the market, is just people having a hard time finding deals. Now, I get it. If you're like a full-time real estate investor, you're probably still finding great deals. But if you're a passive investor, you know, it seems like there are less of those deals than there have been history, or at least over the last decade. And so, in situations where people are looking for especially passive places to put money, well, the capital avalanche, we believe will produce a similar return to what you'll get into real estate and be completely passive. And so, from that standpoint, it could be a really great alternative for people who are looking for deals, but just struggling to find deals that they feel like makes sense. Yeah, it's a great point. And maybe there's a part B to this, because we often run into people who want to invest in real estate, who like the idea of it. And yet, they're busy people, right? They may be, you know, a physician who's running their own practice, and they have plenty of things to keep them busy without going out and looking for real estate deals. And so, again, they like the idea of investing in it, could be real estate, could be anything else, right? Crypto, you know, plug in any alternative investment into that. And so, they just don't ever really quite get to the place where they're using those funds. They build it up, it sits there, they don't end up using it. Well, this is a great way to get a similar type of return as what we all plan on and hope on getting when we invest in real estate. But again, it's a much more passive way to do it. You're still using leverage, again, a lot of the same principles that we use when we invest in real estate. But it's a way to maybe redirect for people who find themselves in that situation where it was a good idea, but just never get to the place where they can put in the research, put in the time that it takes to get up and going with it. Yep. And this is kind of like a done for you thing. Obviously, there's an investment in the education to understand the concept and have us walk through the map, the back end, so that you can get to, so that anybody can get to a place where they feel confident and comfortable with the actual strategy. But once that's taken place and you're confident in understanding it, then it's kind of just sit back and let it do its thing. And I can start utilizing the cash from it when I want, or I can just kind of let it build and keep building on itself. So from that standpoint, huge amount of flexibility. Okay, so, and like you said, Rod, a really great alternative for people, not just that can't find the deals, but that maybe don't have the time or capacity to find the deals or come up with them and want to and never get around to it. Okay, a couple other quick examples we threw out here, college funding. And this is one that people bring up to us a lot. We don't probably talk about enough. It's certainly a like relevant and simple application for the capital avalanche. Really, anything that we're saving for a for a definitive time frame, let me say that another way, when we have something that we're saving for in the future and we kind of know generally what we're wanting to get out of that, we can kind of back into it in the capital avalanche really easily and say, okay, how much would I have to put in today in order to create that at this point, or it could be how much do I have to put in for the next three or four years in order to create that at this point, but either way, it's really, really a solid and good application, because so much of us are wanting to make sure our kids are getting kids or grandkids are getting to school and obviously the cost of college is just crazy. So anyway, from that standpoint, it's just a really simple and solid application for using it. And earlier, I mentioned it's somewhere between investment optimizer in terms of liquidity and retirement accelerator in terms of that lack of liquidity, so to speak. And so in this case, if you have kids that are 10 years old and so you're thinking, well, in eight years, I'm going to need to be ready to start funding their college, or they're two years old, and in 16 years, I'll be there. We have much more liquidity with this than with the retirement accelerator. And so it's a lot easier to plug in for that scenario than where, you know, where we have that lack of liquidity. So liquidity and flexibility, right? Again, where we have specific timeframes that we kind of have to wait for, and the retirement accelerator, we have to let it cook for five years after the 10 that we put it in. So it's a 15-year-out, 15 years-out, whereas somebody could look at that capital avalanche and feel great about taking income in year eight, right? As an example, or year 28, it's just completely fluid and flexible from that standpoint. Okay, Rod, I think those are all the example scenarios I want to talk about. So let's go ahead and get into the how does it work part of it. And so for this one, I'm just going to set the stage and then I'll turn it over to you. So Rod's going, we put together kind of a power point, and so Rod's actually going to put that up on the screen. So if you're on, if you're checking us out on YouTube or want to, you can go on YouTube and he's actually going to walk through the slides kind of and just step us through how the concept works so we can see it visually. As I mentioned, we're also going to have the deep dive series, part of the series coming up here in the next couple of weeks. And then in addition to that, we're going to have a webinar on the website of Money Insights.net. But again, those are all the ways you can check it out. So with that said, Rod, why don't you give us our overview of the capital apple language? Okay, we'll do. Okay, so this those of you who are seeing this, we have Dr. Z here. And in this example, I have to say every time, Rod, that's like my favorite part about that picture. I'm just jealous. I'm jealous. Okay, sorry about that. So okay, so Dr. Z has a lump sum, okay, that he wants to set aside. We've kind of walked through the benefits and so he's ready to go. So he's going to take that lump sum and put it into a max overfunded life insurance policy. Okay, that sounds so familiar. Yeah, right. And just to clarify, it could be whole life, it could be I.U.L. In this example, we're we're not as picky as we are with some of the other strategies where we say, you know, we really prefer one or the other in this one, it could be either or a combination of both. Okay, so great. Okay, so he puts that lump sum in. And then what we do is we immediately set up a line of credit with a bank. And what that does is it takes the liquidity that we have in year one, like normal 75 to 80% of the cash value or the amount that he put in is now available in the cash value. And so we set up a checkbook access to that through that line of credit with the bank. Okay, so this is all happening in year one. And if you're thinking this sounds familiar to things like the investment optimizer, you're not wrong because it is very similar to this point. But here's where it starts to diverge. Okay, because when we get to year two of funding this policy and beyond all future premiums that go into this, the funding that's happening is happening through that line of credit with the bank. So in other words, Dr. Z's contribution was just that one time amount going in in year one, all future amount funding going into this is happening through this line of credit through the bank. And like Christian said, the beauty of the way this one works is a little bit different than what we talked about previously with premium finance or retirement accelerator is it's not just for 10 years. And in most and real probably in all cases, it's going to continue on for a long time, 20, 30, 40 years because there's no reason not to continue funding this. We have net equity in the planet all times. Again, going back to the comment that we made earlier about my cash value is always bigger than my loan balance. And that makes it, it gives us that flexibility of things we talked about in terms of liquidity and access and whatnot. But it also makes it so that I can continue to fund beyond really as long as I want. And the other thing that it does is depending on the level of equity that I build up and or the amount of liquidity that I want to maintain, I can actually start adding additional policies to that as time goes on. In other words, as the delta that arbitrage between what I'm earning versus what I'm accruing in the interest creates a bigger difference between my value versus what the loan balance is, we can tap into that and start to create additional life insurance policies through additional leverage down the line. And so it is something that that can build. And in a lot of cases, people will choose to do that way. Okay, Rod, I don't want to get too far into the weeds on this, but I'm just going to make a point in case people have been paying close attention here. So in this example, what we're talking about is the one policy example I put one contribution in and then the bank takes it over, but without us even putting in any more money, we could potentially and and will likely be able to add additional policies because of the leverage that we created just by putting the premium dollars into the first into that in that first year. So the reason I the reason I delineate that is because we also talked about using it like something similar to the retirement accelerator where maybe we do it for five years or for 10 years or for three years or whatever that number is. And in that example, we would we would put the initial contribution in for those years and each time purchased the policy, but over time we could add additional policies to that if we wanted to without putting any additional money into it. So I know that's a little bit of an intricacy, but this is leverage that's being built on to it without us having to put any additional dollars of our own into it. Yeah, and I hinted at it. I'll just say it really clearly again, but the whole idea here is that with that initial contribution and then the kinds of benefits, the kinds of returns that we can generate with cash value life insurance, again, whether it's whole life or index universal life, we're creating a larger return than the interest that we're accruing on the loan side. And so we have we create this arbitrage, which makes it so that it creates all of these benefits that we've talked about keeps some level of that checkbook access that liquidity that equity that I can tap into, if I need to, creates this future income and ultimately creates this future death benefit that can be used for that liquidity on that transfer of a state. Okay, Rod, I think that's a really good point to just hit on the arbitrage. And I think one of the things that's really interesting about this concept and premium finance in general is just that it's really not about having to generate a 10 or 15 or 20% return in the underlying investment. Like the key to this concept to the strategy is the math behind it. If I generate 3% and only pay one, then that's plenty of return for me to do exactly what I'm looking for. So when we're when we're putting out these examples with the policy illustrations, well, in a whole life example, we're expecting to get about a 5% return. So that means over the life of it, we just need to make sure we're generating more insider whole life policy than we then we're paying loan, then we're paying an interest to the loan. And that's the concept at its core. And so we can get into and we'll get into details more details on how to kind of mitigate and work through potential issues that might happen from an interest rate standpoint. But if you know the rules, it becomes really easy to especially over a long period of time, you're really just allowing that arbitrage to work in your favor. And again, that's what makes it so unique. It's part of the reason that we can look at it and say, hey, you can get predictable double digit returns. It's because we're not relying on something to buy in and of it or we're not relying on something by itself to just produce those double digit returns because, you know, for the most part, those investments are a few and far between. Yeah, and that spread, right, the spread between what I'm earning versus what I'm accruing on the interest. Historically speaking, on average, I have that positive arbitrage, right? One and a half to two percent is really common. And so maybe what kind of you're referring to is there may be times where if interest rates go up, not just the way they're scheduled to go up over this next little bit, where they're saying, hey, a quarter percent per quarter for the next little bit. But if it's much more quickly, like what happened back in the 70s or whatever, then there might be some reasons why we would need to change things up during that time, where we're expecting maybe a little bit of a negative arbitrage. But again, there are things that we can do to stem that tide and then get back to the place where it is the positive arbitrage. But when taken as a whole, when you spread that out over 15, 20, 30, 40 year time frame of this money just working for us and continuing to work for us, then expecting that average one and a half to two percent spread is not only reasonable, but we feel like pretty conservative. Yeah, I think that's really well said. And I think it's important to remember that concept of compound interest versus simple interest that we go back to, right? So one of the things that makes it unique here is that kind of a worst case scenario is that we utilize the loan inside the policy. And in that situation, we're basically paying an interest the same as what we're earning in the policy. And we know that even that in and of itself creates a positive arbitrage for us. So kind of worst case scenario is that that equal positive arbitrage. And then of course, the majority of the time we expect that we'll have a difference. And even if it's only a couple of percent difference between what we're paying and what we're earning, and that's really the power of the concept. And it can just kind of, it just plows through, it kind of does its thing regardless of what the economic conditions look like. Okay, Rodney, what else did we miss on? What else do we need to hit on in terms of the how? Yeah, so the last thing is just that the income can be turned on whenever you're ready. Oh yeah, and this is important. Glad you, glad you didn't forget about it. Yeah, but and the reason is because like we talk about that we have, we maintain this level of equity in the plan. And so again, we can tap into it at any point. Obviously in those early years, we'll be more careful with it. It might be situations like accessing the emergency fund, and then and then putting money back or whatever. But again, if it's the education and eight years, six, eight years into it, I want to start tapping into it and using that money, not paying it back necessarily. That's fine, right? It works. Yeah, yeah. And I think that's really the flexibility of it in combination with the ability to fund long term. And for it to be self-contained is I think those are all some of the reasons I'm really excited about it. Of course, you know, we've talked probably thousands of people over the last several years about kind of the various strategies that we teach people. And I think what makes me so excited is that this ends up kind of overcoming some of the challenges that some people have had while wanting to get involved with traditional premium finance or with the retirement accelerator. So now there's this opening for people who, you know, maybe they don't feel good about doing it for several years in a row, and they want to just make one single lump sum and know that it's going to do the trick for them. So anyway, or it could be someone who's a little bit older and they don't want to wait 15 years to start retirement income. So there's just a variety of different ways that we think the capital avalanche can be a powerful and useful tool to somebody specifically to our high income earning clients overall financial well-being. And for that reason, Rod, we're just super, super excited about it. Is there anything else that you want to add before we close it up? I think for our high level, that's good. But again, we're going to do a lot more detailed information in the webinars and our deep dive. Yes. Okay. So stay tuned for the deep dive. And for the webinar on the website at moneyinsights.net. Okay, thanks everybody for joining us for today's part one of the capital avalanche series, the unveiling. And you can look forward in the next couple of weeks to our deep dive. So thanks everyone for listening. And we'll talk to you soon. Thank you for listening to the Money Insights podcast to learn more about the financial and business strategies discussed in the show. Please visit moneyinsights.net. The views and opinions expressed on the money insights podcast are not intended to be individual financial, tax, or legal advice. Always consult with the appropriate advisor before making financial decisions. 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