The 7 Rules of Money Found Inside of MPI (ft. Curtis Ray)Feb 01, 2020
The 8 Pillar Solution:
- Money Education: Those who understand it, earn it, those who don’t, pay it
- Life Insurance: A safety net & 100% tax-free
- Legacy Planning: 100% tax-free wealth transfer to your beneficiaries
- Tax-free income: All retirement income is 100% tax-free.
- No Limits or Restrictions: No deposit limits & no penalty for early access
- Lowest Expenses: 75% less than a managed IRA or 401k
- Maximum Security: Safe from stock market losses with full or above-market returns
- Maximum Spendable Income: Income is King in retirement.
Curtis Ray's MPI Interview with Steven Bond:
1:37 What is different from your strategy compared to a typical financial advisor?
3:08 Details about Curtis' Amazon Bestseller
5:32 Top 3 Misconceptions in Financial Advising
10:02 If someone wants to contact you, set up a consultation or learn more about your company--where do they go?
Who is Curtis Ray?
Steven Bond, FIG's co-founder had the chance to interview Curtis Ray before he spoke at our Intermountain Real Estate Investment Summit. Curtis owns Suncor Financial and is the author of "Everyone Ends Up Poor! Why Financial Planning is All Backwards and How to Fix It" an Amazon bestseller.
Curtis spent years researching major financial systems, tax codes & the evolution of money. He created a solution with no risk of stocks, less expense & maximize value to produce up to 400% increase in retirement income.
There are 7 Rules of Money Found Inside of MPI!
I really love teaching about compound interest and financial security.
As you see right here it says financial planning reinvented. So I'm going to be talking about that because it's very, very important. Because of the rules of the game, the rules of money have changed. They have evolved, but yet the traditional financial sector is not involved with it. And so a lot of things I'm going to go over today are probably going to sound really strange, or they're, you're not going to understand it, or you've never heard it before. You're going to wonder why nobody's ever told you this stuff before.
Who am I? My name is Curtis Ray, I'm married with five kids out of Gilbert, Arizona. I'm the owner of Suncor financial, I'm the inventor of a product or a strategy called MPI maximum premium indexing. And that is one of a kind and when I get through it, you guys are going to kind of scratch your head like, wow, this is pretty cool.
I've been able to sell about 1300 books in the last three months. It's Amazon, number one seller, and people are really, really raving over because it's like nothing they've ever read before. It's like nothing anybody's ever seen before. Business Owner I four different businesses, they're all profit-generating. We have revenues in the last 15 years over $75 million and the developer of cheap and grow money theory.
BIG Mistakes in Developing a Financial Strategy:
Everyone always tells you how to make money. If you go from all the different seminars you go to everything is about making money. Your financial security is based on making more money. False. It is about keeping money and growing money. The moment you understand the difference who making money and keeping money, your life is changed forever and everything will change.
Because if you don't, if you only focus on making money, there is a 99% chance that you will be retired on less than $50,000 a year 99% of people retire on less than $50,000 a year because everyone focuses in the wrong place. Growth grows, you know, make money, make money, make money, go for home runs, keep getting more and more home runs. But guess what happens when you go for home runs, you strikeout, and you strike out a lot.
But what if the concept just went for singles, just go for singles over and over and over? And when every single aspect of the game then something really special happens? And that's what I get to do is this book right here. Everyone ends up poor is like no book ever written. Because I call out everyone. I had no horse in the game. For four years. I researched this and I wrote this stupid little thesis called the science of retirement. And I basically broke down the 401k, the IRA, the Roth IRA whole life V wells I Ul's real estate and cash, and I put them side by side. And I said, What if I would have put money in this in 1990? What would it look like in 2015?
To the penny, you know, trying to use leverage features here and doing this and this and kind of just going off to the statistics of the market, and there was this dirty little secret. They all underperform every last one of them. Because they're not designed to produce retirement income. They're designed to produce equity or account value or different things that don't equate to income, income is king. And unless you're focused on income, it will not produce income.
And so I am looking at him like, why does it produce income and there was one glaring thing that always stood out. And it was risk down market risk, and how catastrophic down market risk is, and again that a little bit more later, but once you understand the difference between downmarket and security, you'll never want to go near down markets again, ever.
Everyone Ends Up Poor! Why Financial Planning is All Backwards and How to Fix It
This book talks about limits restrictions, traditional planning, it talks about excessive risk penalty fees taxes, a 4% rule if anyone knows about an IRA or 401k, they're bound by this little rule called the 4% rule shall only withdraw 4% of your account value in retirement or poor. If a million dollars your account only produces a $40,000 income.
A lot of people don't realize that if you had a million dollars in your 401k, and you go to retire, you're only supposed to pull out $40,000 a year and then get taxed on it. So you're living on $35,000 even though you have a million dollars, and no one knows that until they get to retirement because they hide it. financial world doesn't want you to know that because then you'll be pissed off. Like what the heck, I'm a million dollars in my account. I'm getting 35, grand or poor. And that's all I'm telling my book is everyone ends up poor.
Here's another big thing. 95% of small businesses do not last more than 20 years. So if your business is your financial plan, like so many people tell me that all my business is my financial plan. That's my financial plan.
As blockbuster how that worked out for him, Toys R Us Sears, BlackBerry, Kodak I mean these companies that had 90% market share and they didn't end up right because they always reinvested back in the business.
This book talks about compound interest, the greatest discovery ever Albert Einstein said it's the greatest discovery man's ever come up with the greatest invention ever. And so it talks heavily on why compound interest is your key to financial security and nothing else. It is the greatest key to financial security The moment you understand it. And then MPI, everyone goes what's MPI, this is the first secure Leverage System available. And typically, security and leverage are polar opposites. They cannot coexist. They can in one area and only one area and we're going to get into that a little bit. The guy went over a little bit so I got a rush. And so I'm going to put a lot of information on you guys. This is four years of research and development. I wasn't a financial advisor I had I was just recently
On my own time, because I really cared about my family and my future. And so I'm going to give you all this information about 30 minutes, and there's going to be some questions, feel free to reach out to me. Everyone who's in this room right now is going to get a book. Also, many of you want to these books, you go, would you guys like the book now or pass it out at the end? Because if you want to see it and hold it and stuff, Porter if you want to start passing out, that's fine. $2 Okay, cool, because long as you guys want to hear me.
The Problem with Most Systems
Here's the big problem. Most systems, as I said, are focused on making money not keeping money, we need to focus on keeping money and growing that money securely. And then it's available in paperback, Kindle and audible.
So what is MPI?
And I don't want to scare you guys right now because MPI maximum premium indexing is an exclusively designed a life insurance plan. And when I say exclusively designed, it's not the whole life. It's not your V wells, it's all the things that you hear bad things about. It was exclusively designed for one reason and one reason only cash accumulation the most amount of income it produces the most amount of income. It is called a max funded option B MPI that is exclusively designed for the wealthy. The wealthy like the wealthy, US max funded option B, the MPI system because of these five reasons right here, guys, and I can email this presentation to you guys. If anyone wants to reach out and get this presentation. It's available to you guys.
Why a max funded option B MPI life insurance plan. And this is gonna sound really weird. I don't care about the life insurance piece. It is a means to the end. When you understand what's available inside life insurance is secondary. We don't care about it. And this is why one they have tax advantages.
How many people this room is heard have heard of the tax code 7702. Anyone?
This tax code is the only task left in the tax code that is 100%. exempt from capital gains tax and estate tax. There are zero taxes on your growth forever. And it's also tax-exempt from income tax when you're pulling money in retirement is at the absolute lowest expenses possible. Remember when I said we're not doing it for the life insurance.
So what we do is we buy the absolute lowest amount of life insurance required by the IRS code to get the advantages we want. That's how we keep the costs as low as possible. Traditional insurance agents and financial advisors when they're using insurance products, they come in and say we're going to get you the most amount of insurance. They make money on how much insurance they sell you. And so they're always going to try to sell you the absolute most amount of shirts require are available, whatever you're willing to buy, that's what they're going to sell because that's how they get paid.
Well, if we flip the script, now, we're only going to buy the least amount of insurance required by the IRS code so that we get this guy right here hundred percent tax-exempt from capital gains tax and estate tax. How many people care about a state tax? You gotta have $11 million or more to even qualify for that. So not very many people care about that. But how many in this room care about capital gains tax?
How many people don't care about income tax? Hopefully, everyone.
So this is the only IRS code and goes read about it. It's really cool. Few people know about it 770 to a tax-exempt code. This plan also compounds at about seven and a half percent interest on average. Like I said, singles and doubles, we're not going for home runs, we don't need the 1520 rates to return it is seven and a half percent on average. And we're cool with that. And I'm gonna explain why we're cool with that. Most financial advisors insurance age all these people like no you got to go for home runs. You gotta get those big years. Those are yours that protect us from the down years.
You'll get the 30 How you going to survive the negative 25 years or the negative 30 years because we just want to go for singles and doubles and never strikeout. Because inside the MPI plan, there is protection on your money. There is no risk to your principal value 100% of contractual guarantee you'll never lose $1 in a down market. But how you do that is with the vision of singles and doubles wins the game.
You get security is your cornerstone. And if security is your Cornerstone, and you're getting seven and a half instead of 1012 1415, like people are going after, you can maintain that you can maintain seven and a half with no down market risk if you understand the rules of the game.
And then the fun happens secure leverage. If you have no risk to your principal value and you have the ability to leverage guess what happens you can leverage without the risk of leverage in real estate 2008 white all blew up if any was around at that point.
What happened you put a line of credit in the house, then you bought a second house, you pull that credit last house, you bought the third house, you pull a line of credit on that house, and all sudden you have four or 567 houses that all are leveraged. And when the equities in the house are dropped 50% your loan to value ratio was messed up the bank's coming knocking, you have to still pay the interest, you're never going to make it back up over the next eight to 10 years. Because that negative in that negative equity was too much to overcome. But what if you never had risked equity? What what happened in 2008 of all your equities would maintain nothing.
You'd pay some interest for a year like you already agreed to do. And then when 2009 start popping back up your exactly where you were before you started. And that's how secure leverage changes the game and why MPI will change the game.
400% More Retirement Income Than Any Investment
By doing these things right here, it produces up to 400% four times more retirement income than any investment you put into. And that's been checked by actuaries after actually saying this is too simple, Curtis. It's just simple. Security first, who would have thought of that? secure your assets first and then go play the game, then go get your singles and doubles.
So I want to talk a little bit about this task go because it seems like when I talk to real estate agents or real estate, you know, empires and stuff, this is the one they really love. They go way, way, way, way know, to capital gains tax, would you say? How do we do that? I just became 20% richer. Now because he got that type of capital gains tax, and is only found inside of a life insurance policy. It is the last frontier there used to be multiple tax-exempt plans and IRS different codes.
This is the last one. And people have tried to do it. People have tried to get around it. But guess what? tat you know you're going to tax a death benefit of a widow. That's not going to happen. And so it's the lone survivor, and everyone and everyone who sees it take advantage of it. It's mostly billionaires, multimillionaires, politicians. Perfect.
National athletes things that things like people who use the Tesco 77028. But when I saw it, I'm like, okay, it's a state tax proof, great capital gains tax proof, great income tax proof. Well, everyone should know about this, it shouldn't be exclusive for the Uber rich, everyone should take advantage of this.
And how we do how we get associates at the lowest cost is like I said, there, this task code tells you this little thing called mech, modified and dammit contract. That limit's an IRS calculation. I'm a total math nerd. So all I care about is the calculations.
This mech limit says if you buy this much insurance, you can invest this much money and it's 100% tax-exempt for life once it then you have no problems. So guess what? I'm like, Well, I don't have life insurance already.
I don't need more life insurance. So what am I going to do?
I'm going to buy the absolute lowest amount of life insurance required by the code. I go to agents all the time. And I go, Hey, you guys should sell max funded option B, because it makes your client way more money. And guess what they tell me.
I don't make enough money off of it. Why would I do that? I only get paid on how much life insurance I provide to my clients. Why would I sell them the absolute lowest amount of life insurance required by law?
Because it's ethical, I don't know, because we're financial planners. Our job is to produce the absolute best retirement for our clients. And we still get paid well, maybe instead of getting paid $10,000 on signing a policy with some you get paid 1400 bucks.
So a lot of them exactly. Sell them in volume because you're actually offering a better product to your clients. And you're offering all these features. By doing that, the cost of one-third of the nutritional plan when you hear Dave Ramsey's, and the different people saying Watch out for life insurance is too expensive. He's right. They are freaking expensive. Unless you designed it one way, Max funded option B, then it is one third the cost of every other life and plans out there. And by doing that, now you have two thirds more money going into your compounding account, two thirds more growth on that money from expenses and all of a sudden it starts producing really, really crazy results.
And the last thing that life insurance does for you it's got a lot of legal protections from lawsuits. It is very favorable it is very difficult to sue a life insurance policy until it pays out. So it gives you a lot of ways to protect your money. As I said, it's not about making money. It's about keeping money and protecting money and growing money.
So I'm going to talk about how we make it happen. Because we're in a world right now of instant gratification we all want our home runs everyone a man I talked to people all the time even people at this conference and they want the whole run. Well, Curtis, your product doesn't give us home run potential. This is a financial plan. a financial plan is based on security. Your Life has to be based on security if you want your future looks positive. Like I said your business is not your financial plan. Everything eventually collapses unless you build it and security first.
Your Business Is Not a Retirement Account
So the only way to make sure that you've taken care of. And the easiest way the least amount of stress, the least amount of headache, the least amount of management is a little theory from the book called The Richest Man in Babylon. pay yourself first.
It is before everything. It is the number one most important decision you can make in your life right now in this exact moment is every time you make a profit on anything you do, whether you have a full-time job, whether you're doing real estate or this and that is you take a percentage of that money, and you set it aside for your future. The only reason you should be in business and the only reason you should be in real estate and the only reason you should be investing is for one reason making sure your future self is secure. 10, 15, 20 years from now, depending on how old you are and how quickly you got to make this happen.
Everyone goes and reinvest back in their business. They make profits on one house. So what do they do? They buy two houses, and they probably make profits in two houses, they buy four houses and then the market collapse and they lose everything and 10 years down the road. They did all this work and equated to
Nothing. But if they would have bought one house and took 20% of that profit and put away for themselves and compound interest, and then did their real estate deals and all the other investments they have, guess what happens 20 years 10 years later, they have 400,000 $500,000 in this account, compounding.
Now they're secure. That's what it's about. pay yourself first, at least 10% invest in compound interest. Compound Interest is the most powerful force in the whole universe. You will make more money in compound interest and you make in any other investment possible. I'm going to show you why I'm going to show you the theory of compound interest because a lot of people don't fully understand it.
As I said, we're in business to protect our future self. Business cannot be trusted when there's risk associated with it. pay yourself first is the easiest way to financial freedom. It's the easiest way because it's already pre-designed, it already works itself. The good thing about compound interest is it requires no work from you. Zero work and so I say compound interest, the greatest evolve. As I said, it's money growing by itself, without any additional work from you. It just doesn't think to pay yourself first money works for you for life, and no additional effort on your part. It focuses on growth, growth, growth, growth,
We ever hear that saying rich people don't use their own money for anything. That actually makes sense. And by the time I get to the end of this, you're going to fully understand what that means. It means rich people, all they care about is putting their money in growth, things that are going to make them more money.
Because compound interest will make more money than all that debt is secondary. When people are like, Oh, I want to pay off my house first. Wait, what you're gonna pay for your house. Your mortgage is 4%. Heck, I want to extend that out to 100 years if I could, my wife would let me I'd refight 100 years. Because that 4% when I can gain seven and a half, that means I'm losing out at seven, three and a half percent arbitrage because I want to pay off a debt growth. your minds gotta go into growth.
You know, when I, when I meet with people, I say curse, I can't start a financial plan, I can't start getting compound interest because I have debt. And I'm like, that's the equivalent of saying, I can't go workout and drink water until I get skinny. Like, don't focus on the negative because what happens? What happens if you start working out drinking water? What happens to your fat? it diminishes, it gets smaller by itself. So what if you start putting your money into growth and compound interest securely?
What happens to your debt, you know, have grown to pay off your debt, not your principal value because your principal value has to be working for you. Remember, rich people don't use their own money for anything, because they put all their money into growth, and then from growth and other leverage systems, they then do what they need to do, but their money is always capitalizing on the theory of compound interest and the theory of rule of 72. anyone here knows what the rule of 72 is? The rule of 72 is whatever amount of compound interest you're getting. Divide that by 72. And that's how many years it takes to double.
So if you're getting 10% interest, it takes 7.2 years to double your money. You're getting 9% of eight years if you're 8% in nine years. And so that's how you determine how fast My money's going to double. one penny doubled 30 times. Has anybody heard this analogy? one penny compound 30 times how much money $5.3 million.
Never put in more than one penny you put in one penny and let time do its thing. Let compound interest do its thing. It's $5.3 million.
That's why Albert Einstein called it it's the eighth wonder of the world. He who understands it earns it he who doesn't pay it. Are you an earner or payer every decision you make Are you earning or are you paying? Are you interest earned versus interest paid? compound interest I'm going to do a few things and I hope I don't get reamed on this. Rentals versus compound interest.
So I did a 30-year bond...
Let's see what it looks like over 30 years. The National Association of Realtors told me that a 3.7% appreciation rate on houses is the national average over the last 30 years. And 3% is the national average on increased rentals.
So I said What does a rental look like over 30 years, in the first year, you buy a house for 100 grand, you have $100,000 and you buy a house with it. And now you're going to rent it out forever. Or you take $100,000 and put it in compound interest and then do nothing.
Just let it sit. In the first year, you're going to get $12,000 income, let's just say you rented out for 1000 bucks a month right? You get it that you get $12,000 Your house is worth 100 grand, your MPI account is worth 100,000 also because you put 100,000 into it.
At the end of five years, you would have collected with the increases in rentals $63,000 total, your house would now be worth 114,000. So you've got about $180,000 in assets.
This is only worth 131 Hello see real estate's way better than compound interest. Wait for it. Your Ted 137 you've now collected $137,000 of income. Your house is now worth 135. So you got about 270 there's only four to 11 okay? Hey, we're still winning real estates, this is way better. up now. 15 they break even 373 70 you're 2500 655 you're 25 650 1.1 million years 30 830,000 $2 million because compound interest is doubling on itself every six to eight years.
So your hundred thousand went to 200 went to 401 to 800, which 1.6 million went to 3.2 million which is 6.4 million went to 12.7 million because time is a factor here. Compound Interest is your long game. Real Estate should be your short game.
You're in real estate to make deals and make money to fund your compound interest. And the moment you understand that everything in your life changes and this can obviously change really quickly if you start putting in more than 100 grand, this is just 100 grand and never doing anything. And what's also funny about this number right here 570 This doesn't qualify 70 doesn't include all their carpet repairs, countertops, cabinets, default evictions, all the other you know, problems we have with rentals, I had five of them had because they are expensive and they are a bear to manage.
At the end of the day, this maybe only 200,000 or 300,000 that you actually got from it, after you actually had all the expenses of it. This you know how much effort this took from you 00 effort. There is a reason why Albert Einstein said compound interest is the greatest mathematical discovery of all time. He did not say pay off your house is the greatest discovery. He didn't say go do this is the greatest discovery.
He said the simple compound interest is the single greatest discovery of all time.
Now, you guys see how it's 2 million and about 800 and some thousand and equity. If you take your home rental income, pleasure, appreciation, you're about 830,000 versus 2 million. That's a little bit more than double two and a half times more. But what does it mean to income? What's more important having net worth equity or spendable income, spendable income, that should be that you can't spend equity. That's the big flaw to most real estate is most of your money is trapped in equity.
Like Well, I can sell it well that doesn't do any good to spend that in a couple of years. Because it's not growing for you always got to have growth and coming in. So let's look what the differences in this exact scenario in spendable income because at the end of the day what like I said, income is king.
Income is king. So in the first year you got $12,000 in income 1000 buck month you made $12,000 at year five with the appreciation rates per year, you know and MPI, you got no money, you got to put compound interest and just let it grow. You get no money from in the first year at your five year rentals now 13,500 a year. Okay, it's appreciated you're doing good at you know, 10 it's 15,015 18,021 24.
And ultimately, in 30 years, your rental income should be about $29,000 a year at the 3% increase. So it's 2400 bucks a month, 2500 bucks a month, compound interest zero, then 1221 4179 150 $285,000 of compound interest renewed every single year.
And you have $2 million in your account that doesn't touch principal value. That's just the power of compound interest. Why compound interest is the greatest invention the world has ever produced.
Be a Disciple of Einstein. It's all about Compound Interest
I'm a disciple of Einstein, like, I think the theory of compound interest what the world's missing. And it kind of frustrates me that in schools, elementary school, junior high, high school, college, anything, we don't talk about this, you would think that who we dub is one of the smartest human beings on the whole planet who said, the moment you understand compound interest, you'll do everything in your power to put as much money into it as humanly possible. Wouldn't that be something we talk about more often?
Except for it doesn't make the system very much money. When you truly understand how it works, if you get all the money and your money's growing for you, how much does that the world get the system get? Not very much. All these systems are all about, you know, management fees and set you up fees and real estate transaction fees and all the things everyone's got to make a bunch of money. But what if the compound interest just went to you? We set up for you.
And so right here, oops, this is 285,000 is spendable cash or if you retired at 25 years produce this much indefinitely? Are you retired at 20 years that produces that much indefinitely, and all that is 100% tax-free. There are no taxes to any of that. Yes.
This is if you said I want to retire in five years from my MPI account, I can pull out $12,000 a year, every single year for the rest of my life. But it keeps compounding gets bigger and bigger as you wait in this scenario that you know, this is just appreciating. And so by this time, so if you didn't take any money out for this time, that's how much you get, which if you add all this up every single year, you make up in two years, and it's all paid off. And everything at that point is growth.
Well, you can't guarantee anything, there's no guarantee that well, just like real estate on guaranteed stocks are guaranteed, but I'm going to show you why. It averages seven and a half securely, securely, and guaranteed or similar but they're not the same. Because this compound interest is the greatest discovery man's ever come up with the greatest and
Ever, but she is super hot. But she has a very, very ugly, nasty mean little sister. And that is called negative compound interest. Negative compound interest negative equity down markets is so terrible. And few people understand this, that if you gain if you lose 50% equity in a down market, how much equity does it take to build positive to breakeven 100% you lose 50. It takes 100 to double the effect.
So you're making all this money the market I'm getting my home runs, everything's great the market crashes. Look at what happened in the stock market. If you had $100,000 in 2000. And this is stock markets with negative compound interest, the effects of negative compound interest. It's going down, it's going up. It's going down. It's going up. It's going up. It's going down. Look at this 2000 It didn't break even until 2013 years of zero gain because of negative compound interest, even though the financial volume like whoa, we averaged 6% in that time, except for you didn't take account the negative compound interest. And that's why down markets are so catastrophic. And why when you lose equity in the house, we have a house, we have one more rental we're trying to get rid of. It has not broken even yet, since 2007. We bought it to 21 it is worth 207 right now 12 years later of rentals and changing carpets and painting and this and that. It's like, so I told my wife, I just sell, I don't care, I'll take the loss.
Understand the Rules of the Game
I just want to add to my life, let's just do this thing. Just because if you understand the rules of the game and how money works, it becomes simple. They made it complicated on purpose. So you don't understand it. Pay us it's not simple. It's very, very different.
That's why you need an advisor. That's why you need a planner. That's why you need that stuff. So this thing right here is how do we avoid this guy over there asked on how do you secure your money? How do you guarantee it, and it's there is one way to eliminate risk out of your portfolio. One way to eliminate risk out of your cash value and that is a thing called the zero percent floor.
I call it the ultimate feature in my book chapter 11. I believe the zero percent floor the ultimate feature because it is the only thing available that bypasses this risk that basically ships off the ugly little sister to Siberia and says, never be in our life again, we don't want you in our life. And well, as I said, it is very, it's pretty easy to make money. Anyone can make money, but it's very difficult to keep the money because of the negative compound interest. So how do we eliminate it, we guarantee no hits the principal value. You cannot lose in principle value is the key to this zero percent for how you keep your money, no down markets, no stock market hits.
But it's in a little thing called an option. zero percent to 11 and a half. That is everything, singles, and doubles, that's all you get. You'll never have a plus 20 years plus 30 years plus 50 years, you'll never have a negative 30, negative 40 negative 50 years. It is just a simple little zero to 11 and a half. And with that most people say well Curtis, why would you do that? Will you only average seven, seven and a half percent? You're going if you go Trucial s&p 500 index funds will average nine over time you give enough time and that is true.
The 4% Rule
Except for they're not taking consideration negative compound interest and even worth or not take consideration how many people in this room have heard the theory the 4% rule. No one knows what that is. The 4% rule is however much money you have in a 401k IRA when you go to retire, you should only withdraw 4% of it.
If you withdraw any more than 4%, it will run out of money within 23 years. And a lot of us live longer than you know, we retire at 6065. We got to plan on living to 90 now. So your money needs to be left long. If you pull up 4%, there's a 97% chance it'll last for at least 30 years. So that's the role that came up with 4%.
Why the 4% rule is so bad is because when you're younger, in stocks and button stocks and 401k and IRAs, you're aggressive, you're getting a nine to 10% rate of return on your money. And then when you hit about 50 years old, what is your advisor tells you to tell you to do. You take your portfolio from stocks and you convert it to bonds. And now you went from nine to 10% rate of return to three to four. You turned off your compound interest the moment you needed it most. You needed that replenish income ability, they turn it off because they have too much risk built-in.
So when they say curse, you're only getting seven and a half 8% in your portfolio. That sucks. Now we can get nine in an index fund, except for, we get seven and a half to eight in our 20s, or 30s, or 40s, and our 50s and our 60s, or 70s, or 80s, or 90s. So we're getting seven and a half and you're only getting three and a half. in retirement, what's my income, seven and a half, you can take seven and a half every single year and you'll never touch principal value.
They can only take out three to four without touching principle values. So by security first making security the cornerstone of your system, you have now doubled your income on the exact same dollar. It didn't make you more money because you weren't going to make more money by the time you get to 30 years are the same, but you've doubled your income on the exact same dollar because you never had to abide by the risk pyramid.
You never had to allocate you know to take your funds and allocate from stocks to bonds because you're in a secure system that had this zero percent floor, to begin with. That's why this year's percent floor is income-focused. You have to focus on income, aggressive rates return even in retirement.
#1 Income Feature
Bypass the risk pyramid, the number one income feature because you maintain good compound interest, even in retirement, the security of MPs first Cornerstone without security. You can never ever, ever, ever have good income. It's impossible. It's mathematically impossible. But we eliminate the effects of negative compound interest. And now the fun part. So anybody who's asleep Wake Up Now, because this is what you guys all came for how you do secure leverage, because everything I just told you, no one could have told you.
What is MPI?
It's too simple. Secure leverage. As you guys know, leverage is the key to real wealth, if you know how to leverage data is how it really works, it increases your assets up to 400%. If you can leverage correctly, the wealthiest people in the world know that was leverage is success.
Real Estate has mastered leverage. So what I did originally is I took all the different products 401k, Roth IRA, insurance products, real estate, and cash. I said, What do they all do? Well, real estate dominates and leverage. They struggle in income production, but they dominate and leverage so that makes up for their downfall. Cash is secure. It's got a zero percent floor guaranteed cash doesn't lose its got away from inflation. Cash has a zero percent floor.
What does insurance products do? Well, a hundred percent tax-exempt. Okay, I like that. What does a Roth IRA do? Well, post-tax money. So the government can't touch you, they can't tax you on your income after that. And what to 401k is do well, aggressive rates return in the stock market? Let's take all the wealth and put it into one.
This is how we do and truly cool. So if you could leverage without traditional risk of leverage, and this might complicate something OPM other people's money, and it is so simple, you guys should all know the line of credit, you have a house with equity in it, right? What do you do with that equity? Traditionally, when you want to leverage it, you know, you get a line of credit on it. You go to the bank and say, Hey, I would like a line of credit. What did they say? What's your collateral? You go I got 100 grand in equity over in this house. They Okay, what do they do?
They put a lien on the house. They don't touch the house. All they do is put a Hey, for our security reasons. We put a lien on the house, then what do they do? They give you money, real money.
What do you do with that money at that point time? Traditionally you go buy a second house, we're you remodel your house or you do a million other things. But the problem with that is that money you borrowed is now insecure.
The market could dip tomorrow. And now you still owe that loan, you spent the money and you lost your equity that was backing that money. It's a triple whammy that 2008 the world had never seen before when over leverage occurred, and then when the markets dropped 50% we can't rebound from that. But what if you had no risk of your equity? What if you had no risks in your principal value? That's how we do it. Grow money, the cash value is used as collateral. So what if you had 100 grand inside your financial plan? This financial plan has a zero percent guarantee.
I go to the bank and say hey, bank, I want to get a line of credit. Just like I would have with real estate. They go Okay, what's your collateral? I got 100 grand over there. They go. No problem at all. What did they do? They put a lien on it. They didn't touch it. This money is still gaining me seven and a half to 8%. All it has is a lien on it.
Now have zero liquidity, but it's still there gaining me my compound interest. They give me $100,000 what do I do with that money?
What should I do with that money?
Make Money Reinvest it Somewhere
Where should I reinvest it or where should I invest it? Where's the only place that we can invest it that has security on principle value, and gaining more than 4% back into the exact same plan. It's a one-second transaction, I got money.
I have 100 grand here I use it as collateral I get a new 100 grand what I do I put it right back in. I now have $200,000 in account no different than if you had a house you put a line of credit you bought two houses, you have double the asset appreciating for you simultaneously. I have 100 Grand I get 200 Grand I put in I have $200,000 now, all $200,000 is gaining seven half percent interest on average. So gaining me $15,000 of compound interest but I'm paying $4,000 4% interest, so on the borrowed money on gaining a three and a half percent arbitrage spread stock market classes the next day 2008 happens in SK what happens to my $200,000 maintains I do pay interest we have to pay interest on down years we get it, we signed up for the interest payment. But guess what happens when it kicks back up in 2009. And we get 11 and a half percent interest gain. We got 11 and a half on our money and seven and a half on their money.
And over the history of the stock market, we have 100 years of stock market data that says you will average about seven and a half percent in this system alone rates 4%.
So in theory, you can gain a three and a half percent arbitrage spread securely because your principal value is always secure and worst-case scenario in a down market is you pay interest that year, we signed up for the interest we get it some years the money we have to pay interest on it comes out of the cash value. We don't pay it out of pocket, there's no out of the pocket transaction, your 200,000 would actually go to 196 they'll say, hey, you have 4000 bucks for the interest you have it, just take it out cash value, okay?
We contribute as I put here we contribute 10,000 plus $10,000 20,000 new money's getting three and a half percent arbitrage no risk to leverage money and the system is automated.
Your Only Job is to Pay Yourself First
Feed the beast. You pay money, everything else from that point on happens by itself. Compound Interest happens, the leverage feature happens. You need to say hey, this is what we're doing with your money. Okay, cool sign. And then arbitrage is achieved. When I went to an actuary, he told me That's impossible. You cannot produce arbitrage indefinitely, because the market will get saturated.
Too many people get in the game, and then you lose arbitrage. So that's not true. There's one way to do it inside security inside the MPI system. He looked at it two months later said Wow.
This is going to change the world. The rules of money have now evolved. You can now have security and good compound interest like I said singles and doubles I never go for a home run I don't want it people like currencies invest in Bitcoin I so I can lose all my money or steal someone else's money. Because every upmarket requires a down market every downmarket means someone lost a ton and someone gained a ton.
Why not everyone just win. And the richest man in Babylon? Somebody asked that question. Well, can everyone win? No, I'm not there's no there's no way everyone can win. Somebody asked me a winner Someone has to be a loser. That's not true.
There's always a winner there's always a loser because of greed or because of stupidity or this guy invested terribly in this guy invested great. But if everyone just thought of singles and doubles, securely, cell phone, you know autopilot, just make it happen. Take advantage of the greatest mathematical discovery of all time, the greatest invention man's ever come up with if you take advantage of that.
And you make sure security is your Cornerstone It is now easy for everyone to win.
MPI = Maximum Premium Indexing
MPI is long term maximum income, this is your long play. This is not the short play, this is your long play. You will not be billionaire tomorrow doesn't work that way. But you can have a whole lot of security income and 10 years from now, or 15 or 20 or 25 depending on your age.
And it will produce up to four times more income than any other thing you put your money into. If you care about spendable tax-free secure income, this is your long play, because it will outperform a vu variable Universal Life index Universal Life whole life 401k IRA and rentals from from
So MPI is also security on your money. When people ask me curses sounds too good to be true. I'm like, I get it. I lay in bed at night saying this was too easy.
It was too easy. I'm just a guy. I got 36. I'm a CTS and math. So I get it, I understand how numbers work. But I can't be the first person to ever question why everyone ends up poor. I cannot be the first person to say, Why do 99% of people end up on low fixed income, even ones who have rentals and this and that, then that they end up on low fixed income is it because it's not income-focused? tax-free income, capital gains, and inheritance tax-free, that's huge.
MPI and Leverage
That's one of the things MPI high rates of return to leverage. So we start off at seven and a half. But once you start including that leverage, it increases 2% per year, every five years. So by five years, you're getting nine and a half by 10 years, you're getting 11, half, etc, etc. So by the time you get to 2025 3035 40 years down the road, you're at 20 25% compound interest securely. There's nothing like that, even to the point that I'm like, Oh, that looks kind of scary. Like I don't want to say stuff like that, but it's math.
It's objective and how I stress it I don't do averages. I took 1982 2015. And I plugged in real-life rates return through history historical data and said if I would have started 1980 or 1990 or 2000 or 2010 what would exactly look like today to the penny and every single time at a minimum 400% increase on spendable retirement income?
Life Insurance security, as I said, there is a little bit of life insurance is good, you know, but it's not your life insurance plan. Some people may be because you're putting a lot of money and whatever they require you but a normal person comes to me curse I want to invest $10,000 a year, the maximum it's like 300 grand of life insurance.
They're married with four kids. It's like hey, that's probably not enough. Let's get you a term policy also because this is not a life insurance play. But the life insurance pieces a cherry on top. That is just a bonus. But if we maintain that life insurance, everything is tax-exempt from that time simplicity and low expenses who want more simplicity in their life?.....
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