123: Infinite Banking, with Kofi Thompson

123: Infinite Banking, with Kofi Thompson

Welcome to the Managing CRE Risk podcast with Jeremy Goodrich. Our guest today is Kofi Thompson, a financial advisor who helps people invest in many different asset types. In our conversation, we focus on the concept of infinite banking, a great way to create your own bank and make interest on your own money. We also learn how Kofi has mitigated real estate risks throughout his REI journey. Learn more about Kofi and his story at shineinsurance.com/managing-commercial-real-estate-risk!

“I get up every single day thinking about who are the lives and people that I can impact that day?”

07:36

At the beginning of our conversation, we discuss 2 of the “Risky 6” questions. Kofi shares some risk-related stories from his journey that can help us understand and manage risk better. 

  1. What’s a risk that you took that changed your life?
    Starting his practice. Kofi left a secure and well-paying 9-5 job to follow his dreams as a financial advisor. It was stressful to take the leap, however, seeing how much impact he had on others’ lives made it all worth it.
  • What is a risk that you’re comfortable with that maybe other people are not as comfortable with?
    Risking his money and cash flow. As opposed to many people, Kofi is comfortable investing most of his money and having a smaller amount of cash in hand. He invests in the stock market, in real estate, and into his business.

“One thing that I practice is to not have an emotional attachment to any one specific asset, even if it’s been doing well for 5, 10, 15, 20 years, and continue to diversify.”

22:22

Kofi is an expert in infinite banking. Infinite banking is a personal finance strategy that leverages a whole life policy as a “personal bank.” This includes taking loans against the policy and growing cash flow through the insurance’s dividends. This creates more liquidity and the investor’s money appreciates at a better rate than in a savings account. 

Infinite banking is a good option for someone who already has the financial capacity for their basic retirement needs and has a passive portfolio. It is a mid to long-term strategy.

Infinite banking has some risks as well. Kofi shares some ways to mitigate these risks.

  • Choose a mutual company that’s not owned by stockholders. So company profits or dividends that are paid by that company will flow to the policyholders and benefit the policyholders.
  • Go for a company that issues dividends because not every single company out there is a dividend-issuing company.
  • Choose a highly rated, stable company.

About our Guest, Kofi Thompson

“My team and I help our clients meet their current financial needs while planning for their future. We work with high-net-worth individuals, business owners, and Real estate investors to address those issues such as reducing taxes and increasing capital through alternative ways of investing and infinite banking strategies.

If you are looking for ways to increase returns while taking on less risk that is something we help our clients with every day. The traditional ways of building wealth could work for most people but are they enough to help you reach your goals? 

If this is a question you asked before it may beneficial for us to connect to see how my team and I can help you get to your goals faster and more efficiently. Feel free to reach out and we’ll make time for you to see how we may be able to help you as well.”

Mentioned in the show:

  1. His LinkedIn
  2. His Instagram
  3. Shineinsurance.com
  4. www.shineinsurance.com/managing-commercial-real-estate-risk
  5. Jeremy’s LinkedIn

Need an instant insurance ballpark for your next Multifamily deal?! Answer 9 simple questions and we’ll give you a sense of what insurance should be. Visit us here for everything you need to know: https://www.shineinsurance.com/ballpark/ 

Special thanks to Kofi Thompson for taking the time to share so many great insights with us

 
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Until the next time, We truly appreciate you listening.

Until the next time, We truly appreciate you listening.

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