Leveraging Life Insurance For Financial Freedom And Legacy With Jim Rachor | 680

MORI 680 | Leveraging Life Insurance


Our last episode discussed using life insurance to create more cash flow. But what are other ways that you can use it to invest, or even set up your own family legacy plan?

Our guest, Jim Rachor, shares how he has used his policies to not only invest, but to create wealth for many generations to come. Find out how he’s doing it!

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Leveraging Life Insurance For Financial Freedom And Legacy With Jim Rachor

Welcome to the show that’s for you. For those of you who work so freaking hard for your money and now want your money start working harder for you now. You want that freedom and cashflow now, not 30 or 40 years from now so you live that life that you love with those that you love. Most importantly, it’s just not about getting rich. It’s about living a rich life because as you’re blessed financially, you have a greater capacity to bless the lives of those around you.

Thank you so much for allowing me to create this ripple effect through your lives. I appreciate you reading. You’ve been sharing and binging. Most importantly, I love the fact that in this new year, you have been looking at trying to get those goals. Thank you to those that have been reaching out to us with questions as well as ways that we can serve you. Thank you so much for doing that. As a reminder, if you haven’t done so already, go to MoneyRipples.com and take the Passive Income Calculator to see how much passive income you can create in the next twelve months or the next year. Check out to see what you can do in 2023.

I’m bringing on a friend here. I’ve been asking him to come on for months because this guy is a rockstar. We’ve got Jim Rachor here. He started in the dental industry and still has ties to that but he’s a philanthropist and has got a great nonprofit out of Guatemala. He does some cool things out of there. Not to mention some of his kids have been adopted from there. He has seven kids. You’re pushing my kid limit right there. Between the two of us, we could have a Guatemalan village together.

I want to bring Jim on because he’s a brilliant financial mind as well. He’s been out of the rat race. He’s financially independent and also has done a lot of creative things with his infinite banking policies that I want to dive into to give you some real application of how he’s been able to do that in his life. Jim, welcome to our show.

Chris, thank you so much. It’s an honor to be on the famous Chris Miles money show. You and I go back probably five years now. I met you at one of our masterminds and we talked about infinite banking right off the bat. You were the first person I knew that could explain it. I was still a baby learning it. You brought it home so thank you for doing that. I appreciate that. It took me about three years to finally get it. I thought, “How come everybody’s not doing this? This is legal.”

I did so much back work on it. I took the Michigan life insurance exam and passed. Ironically, I can sell life insurance but I wanted to make sure it was real and that what you were talking about was real. I appreciate you helping me with that. You and I can talk all day about it. My background is my dad was a financial advisor for 55 years, only in the market. Looking at what’s going on now, it’s pretty scary. I started thinking about alternative investments. The group that you and I are in invest in alternatives like real estate, self-storage and all sorts of things that generate cashflow and the bell went off for me.

When I moved into the alternatives and started marrying it with the infinite banking idea, another bell went off. Before I do any deal, I’m going to overfund my insurance policy, take that collateralized loan out and then put it into another deal. I could supercharge that 10% or 12%, let’s say it’s a hard lending deal, short-term lending deal or even if I was going to buy a turnkey, I would usually run it through the family bankers or the infinite banking structure, gain that 4% or 5%, take it back out tax-free and then put into another investment.

It’s layering every investment I ever did. I’d layer it with the insurance part first, especially now in this in this downturn. The insurance product gives you a guaranteed 4% or 5% as opposed to now in an environment where you have no idea what you’re going to make. You could lose all your money. We did all the infinite banking. All seven of my kids have policies as well so we have thirteen total policies right now. We overfund all of them every year. We take those collateralized loans against that company and then we immediately put them into an alternative type of investment and keep that rolling.

For most all of those policies, the beneficiaries are our family bank, LLC. We have a name for it. As the Rockefellers did, if there’s a death or not, everything trickles into this LLC that we all own. My other big thing is legacy. What’s the legacy play? I’m generation one. My kids are generation two. Generation 3 and 4s, where some of the good and bad happenings. The people that did it well, the Rockefellers and some other families incorporated this infinite banking structure. On top of that, they talked about legacy governance.

My big thing is to teach your kids to be wealthy or have the financial acumen and not hide the dynamite. I’m going down to one of the largest dental schools and talking twice next month. I’ll walk in there and most of those students will have no idea about anything about business or finances. That’s pretty sad. For me, it’s the infinite banking structure, parlayed with alternative investments and then segue into our family bank strategy.

The other layer would be what’s called a family office. All of our kids have LLCs and that’s how we can move money around different deals through our family through a big large business with subsidiary LLCs, which each child is doing deals with. We have joint venture deals going back and forth with different kids and entities. All are on the good side of taxation. To me, that’s the way an estate should be grown in an integrated business structure as opposed to the quintessential estate planning of years ago with generation-skipping tax and all that good stuff.

It all starts with infinite banking and you’re the expert. It was 2017 when you and I talked. I was like, “This is the first person I’ve met who knows what they’re talking about.” I felt good because as I talked to more people and people knew what we were doing. Some of the smartest people I knew would go, “I’ve been doing that for years.” People don’t just talk about it so thank you. That’s my background. That’s where I come from. I’m always looking for something that cashflows that I can put the over funds into.

MORI 680 | Leveraging Life Insurance
Leveraging Life Insurance: An estate should be grown in an integrated business structure as opposed to the quintessential estate planning of years ago, with generations skipping tax and all that good stuff. It all starts with infinite banking.


My goal for my kids is to move from being successful to being significant. We do a lot of work in Guatemala. I was on a call with a feeding center and we have schools. I have two daughters that we adopted from there. Teaching the kids to be significant and find what’s important in life and how to manage money but how to create cashflow so they can realize their freedoms, not when they’re after 40 years of work at General Motors or something like you teaches. Find your freedom now and follow your passion.

I’ll mention one last thing about the kids as we talk about the 777 test. For my kids, I have them write down what’s their 7 passions, 7 things they’re good at and 7 experiences that they’ve had. If you circle things that go together with all 21 of those items, you’re going to probably find a direction that they can follow in their life and they’ll be passionate about.

Don’t leave a legacy but live a legacy because you’re going to leave one anyway. Live your legacy with your kids as you do. You’re at home and not working an 8, 9 or 10-hour job every day and then driving for 1 hour and then trying to meet your kids when they’re in bed. You’re living your legacy with them. I applaud you for that. That’s what I’m trying to do. That’s me in a nutshell.

That is a big nut to crack there. You’re incredible. That’s why I love you so much. We talked about infinite banking and using it with investing and you opened up with that. For you, it’s so much more. It’s about creating that legacy or that Rockefeller type of plan, to be able to have that continuation that goes from generation to generation. We have friends like Eddie Wilson and his grandfather taught him about it. He was somebody who owned a bank and bought policies on people all the time. The banks invest in these policies and then now he has it himself. I didn’t even know that until I brought up the conversation. He’s like, “I’ve been doing that for years.”

It’s that legacy of teaching them. I love that 777 principle you talked about as well or that little practice to help them hone in on what we call divine genius. I love that. You created three potential episodes right there alone. Let’s go into your belief system with this. You mentioned that for you in three years it clicked. You’re taking the path that many people are reading this wanting to become financially independent. You’re already on that path. You introduced infinite banking and said something clicked there. What was that moment? What was that thing that helped you put the pieces together?

For me, it was going back to my dad’s large firm that managed lots of money. A lot of those people in the Wall Street bubble only know one thing. I would say things like, “All the money he manages in one asset class.” They didn’t even get that. I’m like, “Maybe I’m the weirdo.” I started reading books. I joined masterminds and talked to people. Over the course of two years, I’ve read so many books about it that I was educating people about it. I was like, “I’m wasting my time. I got to try to educate people that are managing my money.” They’re like, “What are you talking about?” I’m like, “You don’t know about that?”

I got nervous then I’d read more. What I love about books is they’re frozen in time. If something happened in the ’60s, ’70s and ’80s that person wrote the book and it’s frozen in time and you can go back and read it and see what happened in the financial structure or market that was going on during those times. You could see if things worked. I noticed that people who did the infinite banking, Nash and all those guys came out doing great and better, especially in a downturn.

I started reading about Bank of America, Wells Fargo and a called KeyState Bank back in the day and most of their assets were in insurance. They weren’t even in things that they owned like land. They had more assets than insurance. I see how that happens with some of these big Wall Street companies. They sell their shares to the little people but they take that money and invest it in insurance. It’s been around for hundreds of years. It’s always paid out.

We’re on the precipice of an impending humongous crash in our market. We’ve already seen little blips but it’s coming. I don’t have any money in the market. When 2020 hit and had the COVID problem, I didn’t lose any money. I didn’t lose any principle at all which I would’ve. A lot of my friends have lost half of their money since last November 2021. The baby steps of talking to people, reading books about it and a gazillion people out there selling the product but behind the scenes of what they’re selling, there has to be something solid. It’s infinite banking. It’s just math and all the math work out.

We’re on the precipice of an impending humongous crash in our market. We've already seen little blips, but it's coming. Click To Tweet

I started creating these little formulas like, “What if I overfund $100,000 and take out the collateralized loan tax-free?” I invested in a lending deal or even an asset as I was telling you where I put it into a fractional ownership apartment complex deal. They refinanced the whole deal and got that money all back again. The original $100,000 goes through the insurance policy. I have it back in my hands and it’s making 5% there and 10% in the apartment deal. They refinance my principal back again. I put it into a third deal. I’m super stacking it. I call it in a rocker super stack. My same $100,000 in 3 deals and soon to be 4.

You cannot do that in a stock market. On the back end of those refinance deals, I’m mitigating taxes by getting a deduction on the loan for the refi. I’m able to run it through my family office structure or my home office structure. I can deduct business expenses. It grows and grows. You then start reading how people do it. To me, it was a natural flow but slow because I’m not that smart. I had to sit and do the math and have people correct it.

I got my insurance license because I passed that and I don’t know how. I was like, “I would’ve known about this earlier.” I want to do it with my kids. I thought I was pretty cool with having thirteen policies. I was at lunch with one of our friends, Garrett Gunderson, one time and you were there too and he has 23 or something. Another person that was there that we’re talking to and I won’t use his name but he had 22 or something. Now, how else do you parlay that? There are a million ways. “Do I create a key man insurance for myself in my office?”

This is way better for me than a Roth and IRA. Warren Buffet does it. He doesn’t have any IRAs at all but has got a ton of these policies and some of the life settlement stuff. People don’t talk about it as much. It’s almost weird. Seven years into it and I’m loving it. There’s a living benefit. There’s also a death benefit to it which we always forget about.

In a nutshell, it was doing all the research. When I compared an IRA and infinite banking, infinite banking might be better. Roth and Infinite banking are pretty close but other than that, it’s probably one of the smartest things that I’ve ever come upon. I’ve tried to prove it wrong. The people who don’t do it and don’t understand it, don’t put the time in understand it.

I was going to ask that question. Some of our colleagues say, “It doesn’t make sense. Why would I pay to borrow my own money?” We did an episode on that. Many times, people get hung up on the shorter-term numbers versus what it starts to create after the 5 or 10-year mark when you start to see that momentum build and go beyond what you would do with a savings account or anything else.

In the beginning, the difference between compound interest and a simple interest payback is math that I didn’t know how to do. There’s a margin right there. What’s also cool is once you wash it through the infinite banking insurance policy, it’s litigation-proof for the most part, depending on what state you’re in. It’s credit report proof. We built the house recently and it never showed up anywhere. I was like, “That’s interesting.” There’s asset protection and in most states, it’s credit report proof but you have to check on that. It’s a great way to create a legacy play for your kids who are the beneficiary. We do a lot of that on the internal side of our family office but you can buy and sell them.

There are no deposit limitations like you would for a Roth or anything else. The key is that all I can amalgamate into a family office. I call a family office a little different than if you googled it. You can have $100 but if you can create a structure on the good side before taxation, where you can run a bunch of businesses with your kids and your family with legit LLCs that do business you could have a family bank LLC that you can all can share assets and now when that grows, one of my kids might want to buy a house, they can borrow from our family bank or a down payment for a car that they have to pay it back.

It’s a way to create your bank like the Rothschilds and some of these famous families did. Infinite banking is the backbone of the whole thing. Unfortunately, when somebody dies, it’ll fill the coffers as the Rockefellers did. If you were a Rockefeller eight days later or whatever the day is, you can do it and get an insurance policy. We’ve talked that to our kids and I have a granddaughter right now and she’s all set.

The last question is what are some of your best reads? You mentioned a lot of different books and things you studied. What are some of the best studies or resources that you’d like to go to?

It’s all the infinite banking books. It’s the same concept. I won’t list all of those but you can read those. I usually read 1 book or 2 a week. I’m starting this Family Office Handbook and Getting the Band Back Together by Dr. David Phelps. It talks a little bit about people that are trying to become financially free with passive income and that’s what happened to me.

Also, all the books that everyone likes to read like the Robert Kiyosaki books. I like a book called More Than Money. It’s talking about large and wealthy families and how they managed that. What Would the Rockefellers Do? is another great book and I would read that. I’m a big Tax-Free Wealth guy by Tom Wheelwright. If you have significant income, money or wealth, the first thing you want to do is mitigate taxes. The second thing you want to do is create a castle and make it liability-proof. You want to talk about how to invest it. I’m a big believer now in the alternatives because there’s a safe backend to all those deals as opposed to being in the market. That’s why I like Tom Wheelwright’s book.

MORI 680 | Leveraging Life Insurance
More Than Money: A Guide To Sustaining Wealth and Preserving the Family (Bloomberg)

Garrett Sutton is Robert Kiyosaki’s attorney. I like reading his books about structures. Dr. Larry Pino who’s my attorney and has got a few good books out there about cashflow and integrated structures as well. I would start there. I then would create this thing that mitigates taxes, preserves your principle and is liability protected. You then start your infinite banking.

Those four things are what you want to do. I would call you because you know how to set everything up. You would be the person I would talk to as well. That’s what I would recommend. I’ll probably tell the seniors in dental class whom I’m going to ask as I walk out on stage and say, “What was your favorite business class in school?” There’ll be crickets and it’s sad.

That’s wise counsel, Jim. That’s great. If anybody’s the reader, they’re going to be full for the next several months. That’s perfect. Jim, I appreciate your time and it’s very generous of you. We’ll also tell people how they can reach out to you, connect with you on social media and do things like that as well. The thing is we’re teaching something more than money. This is something that goes much bigger, generational and creates a legacy and not just a living. Make a wonderful prosperous week. We’ll see you later.

Thanks, Chris.


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About Jim Rachor

MORI 680 | Leveraging Life InsuranceDr. James Rachor has been married to Lucinda Rachor for 32 years and is the father of 7 children with 2 of his daughters being adopted from Guatemala. Dr. Rachor attended Michigan State University as an Economics major and in only 3 years was accepted, attended then graduated from the University of Michigan Dental School in 1990, He has been a practicing dentist in Michigan for over 30 years. Dr. Rachor has been to Guatemala more than 80 times serving and directing on various mission trips or other faith-based relief projects. Dr. Rachor serves as one of the Founders and is the President of Transforming Futures Charitable Foundation US and Vice President of Transforming Futures Guatemala.

Dr. Rachor is the founder and director of Carriage Town Dental Network ministries serving the homeless of Flint Michigan. He is the Founder and President of Rachor Dental Care which he recently sold in December in 2021. He is also the Founder and CEO of Smile Mentorship Institute consulting and training young professionals and teaching at the University of Michigan and elsewhere. He has been a speaker at investment and financial conferences as well as many podcasts. He has been the key speaker or podcast interviewee on Money Insights, Carolina Capital, Freedom Founders and Duckett and Ladd CPAs, as well as Brogan Wealth Management to name just a few. He coaches several high-net-worth families and individuals on strategies to preserve capital, mitigate taxation, hedge inflation, and leverage debt while creating family legacy planning.

He has been the Founder and Director of Mobile Smile Institute, as well as is now the President and Founder of Mission James Capital Management Corporation management company; Dr. Rachor also serves on the board of the Rachor Foundation directing and creating educational scholarships opportunities in the Flint Michigan area, as well as on the board of Racvest LLC investment company, and a member of the advisory board of Stromberg Investment Group an alternative investment company in Texas, He also serves as President of Rachor Properties LLC a Real Estate Holding Company, and as Managing Director of JaCinVest Investments LLC , and is the Chief Executive Manager of ASANASH Group LLC, and is Founder and CEO of Mission James Capital Holdings LLC, which owns everything real estate , especially developing, investing and holding quality real estate with ownership in Self Storage, Off Shore Resort property, Apartments, Single Family Homes, Notes and Note Space alternative investments and much more.