In this episode, we interview John 'Hutch' Hutchinson about how banks invest their liquid reserves so businesses can learn and adopt the same strategies for their own cash profits.
:00 Opening Remarks:
Steve: I met Hutch in PV
Or Will: We’ve worked together on mutual clients
Hutch is licensed as a financial planner and insurance agent, but he specialized in the unique challenges that business owners face. Business owners have special sections in the tax code, they have a greater need for asset protection, they have additional estate planning considerations, but most importantly liquidity is often the life’s blood of their business.
:45 Introduce episode:
And that’s mainly what Hutch is going to talk about today, how business owners can transform their liquidity, their cash reserves, from the likes of a lazy employee to a star performer who’s wears multiple hats for the business.
1:15 How does the listener benefit?
Ever wonder what to do with your emergency fund or your savings in between buying equipment, inventory, or property? There’s a huge vacuum in the financial planning industry for what to do with money reserved for these purposes. Here’s your 3 choices according to most financial planners:
2:00 Discussion points:
10:00 Tips for improving or overcoming the above challenges:
17:00 Final Take-aways: (2:00 mins) Recap benefits for listeners
The proof is in the pudding that fact that Bank of America and Wells Fargo invest over $20 Billion in these types of products for their cash reserves, more than double that each own in real estate. They’d even do more if they had more key employees to insure. In fact if you type in “Walmart Life Insurance Lawsuit” you see that Walmart liked this idea so much they took out policies on low level employees like cashiers and janitors. You don’t have to do anything illegal. You can be like Walt Disney and insure yourself, or you can legally own policies on your business partners or certain key employees.
20:00 Show ends
Guest Resource Information:
Be Your Own Bank in 5 Simple Steps:
The Top 4 Myths Behind Becoming Your Own Banker:
Indexed Universal Life's (IUL) Pros and Cons Thoroughly Explored: