Most people focus on what they’re doing with their money.

Very few stop to ask what their money is actually doing.

In this episode of Make Your Wealth Work, Jason and Joe break down one of the most overlooked concepts in personal finance: the idea that your dollar should be doing more than one job at a time.

We walk through how most financial strategies force tradeoffs, growth vs access, control vs returns, and why that creates friction in your long-term plan.

Then we introduce a different way of thinking:

What if your money didn’t have to stop working just because you decided to use it?

This conversation dives into:

1. Why most people unknowingly limit their money’s potential
2. The problem with constantly moving money from one place to another
3. How traditional financial systems force single-use dollars
4. What uninterrupted compounding actually means
5. How to begin thinking about your money as a system, not just accounts

If you’ve ever felt like your money is working… but not working hard enough, this episode will challenge the way you think about every dollar you control.

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Foreign.

Welcome to make youe Wealth Work, a practical show for builders, entrepreneurs and anyone who wants to think like one.

I am JCK Powers here with Joe Pantozzi.

Today we are introducing a big concept that can change how you think about money.

Uninterrupted compounding and the multitasking dollar and the idea of having your dollars do really more than one thing at a time.

And here's the question we want you to think about right out of the gate.

Where is your money sitting right now?

And how many jobs is it actually doing for you today?

Most financial vehicles force a trade off, right?

If you want liquidity, you usually give up guarantees.

If you want growth, you usually give up control or accept market risk.

But there's a place many families overlook where you can combine guarantees and access and legacy and continued growth and all in the same dollar at the same time when it's done correctly.

And so we're going to break down those trade offs on each thing we're talking about today and keep it practical and show you why uninterrupted compounding matters.

Joe, how you doing today?

Wow, that was a mouthful.

I can't wait to hear what you have to say.

This is pretty cool.

That's right.

Let's do this.

Yes, we are.

We've been talking a lot about just the different things that money can do, you know, and where do people warehouse it, where do people put it to grow and store and what's it doing for them?

And are there options right now that people don't know about?

And I talk to clients all the time and I think that's why I always want to talk about this in this kind of setting is people don't know what they don't know, right?

And what if we're taught one way and we don't think beyond that?

We're like, well, the majority is doing this, so therefore that must be correct.

That's normal.

That's a normal way of thinking.

Majority do this, but.

And so I don't have other options.

My work says here we're going to contribute to your retirement account.

And so therefore my only option to build retirement is work and let them contribute.

And I can match it, right?

These kinds of things.

Do we have other options?

You know, so that's kind of what sparked this conversation early on.

And I wanted to really unpack it a little bit today.

Will probably, as you know, we could come up with plenty.

We could talk about this for hours.

And so we'll probably be in a couple episodes on this topic and Unpack it.

So the first thing I think about is I always try to begin with the fundamentals.

And maybe this is a disclaimer that'll help some people.

Just get the heck off this podcast.

It'll save you some time.

And you can just.

And you can just hit the delete button because.

Because this is for people.

And no disrespect for people who just want to have their money sit.

And they call that accumulation theory.

No disrespect, right?

Because if you've accumulated a million dollars and it's sitting in some account earning 1%, you don't care because you've already beat the averages.

You beat Parkinson's law, You're ahead of the curve.

You're ahead of 90% of Americans who have done nothing.

So this is no disrespect to people who just want to accumulate dollars.

Are there negatives to that?

Well, there.

There could be.

It may be that your money sitting is earning less than the impact of inflation, but again, who cares?

You have a million dollars, right?

Whatever the number is.

But this conversation is for people who.

Who want to actively be involved in.

In moving their money around to the most efficient place and creating efficiency, creating income, creating flow of money toward yourself.

So the difference between people who are wealthy and on the wealth track and other people are wealthy people have discovered how to get money to draw toward them instead of having money drawn away from them.

And money can be drawn away from you in any number of ways.

Maybe you spend too much of your time and energy shopping online, and you wind up getting Amazon deliveries every day of the week on these really cool shiny objects.

But you're draining cash flow.

We're talking about people who not only want to build wealth in dollars, but create wealth and value in the areas where you want to create wealth and value.

And we always focus on that.

Our role, and we're, you know, infinite banking thinkers, our role is to help you build a repository, a bucket, a savings account, a capital account of money that you can then collateralize and invest in the things that you love.

Right?

Maybe that thing that you love is the stock market, some kind of a market account, some kind of alternative in investment.

Right.

Crypto or some crazy thing like that.

Some people love accumulating physical gold and keeping it in the safe.

I'm kind of agnostic as to how you want to build your wealth.

You want to build business or businesses, right?

You want to own a portfolio of real estate.

The one thing that's common for people who want to build assets is you must have access to capital.

So we go back to the square one.

What's the best access to capital?

What's the best asset to have available?

Cash.

The question is, how do I get the cash?

Well, I can save it over a period of months and years so that I can deploy it and redirect it where I want it to go.

And we're talking about the multitasking.

These are highfalutin words, right?

Multitasking $.

It's ideal to have your money doing more than one thing.

But if I have my money in savings and I need it, I've gotta take it out and send it someplace else.

That means it left box A and is going to box B.

That's not multitasking.

You're moving money from A to B.

It's only doing one job in one place at one time.

And the premise behind our whole philosophy is we want our dollars to be doing more than one job.

So if we take cash, we're going to spend it, it's going to go someplace else.

If I'm going to instead rely on a super huge, wonderful FICO score and make sure that the lenders all around me are going to lend me money at the most favorable, favorable rates.

What I'm doing is I'm building the asset, the business, the portfolio that I want to build.

But I'm relying on a lender that may or may not raise my rates at any given time, that may or may not pull my credit line at any given time, that may call my loan.

Right?

So what we're doing, we're doing is we, we're giving control up in exchange for access to cash.

So I can either spend cash or I can borrow cash, right?

So we talk about the saver.

The second one is the debtor.

It's kind of a negative connotation, but somebody who has an active line of credit and they're building up their kingdom of finance.

They're setting up lines of credit, one line or 100 lines of credit.

And so what is that credit line doing?

Actually, that credit line is creating a multitasking dollar, but just not for you, because you're having to send interest back to the lender.

And guess what the lender is doing with that interest?

They're relending it, right?

Think about your, your car loan, your car loan payment.

The lender, the finance company is taking that payment and putting it back into another car loan.

They're getting multitasking dollars.

You're not, you're credit, your mortgage, your car loans, your credit Cards, your SBA loans, all your forms of debt, creates a future stream of income for the lender.

And what we're trying to teach people and coach people to do is own the banking function.

So if you're the lender, if you're in the middle taking money in and lending money out, you're the lender, the banker.

You're making all the money.

You're making the lion's share of the money.

Now, if you become that banker.

Heard a book by that name, Becoming your own banker Banking Concept by R. Nelson Nash.

If you become that banker now, you're controlling the banking equation, you're controlling the flows of money in, the flows of money out, and you're actually paying your system back.

And we can talk about that in much more detail multiple times.

Because it takes a while for people to get this, because they've been doing it a different way for 20, 30, 40 years.

And they come to us and they say, you know, I knew that there was something out there, I just didn't know what it was, right?

So people, people find Nelson's book refreshing because it's simple, it works.

It's backed up by economics, by science, by math, by history.

I like that debtor and saver analogy.

Because if you think of.

Even if you think of like a graph visually, how we save for things and it's accumulating and that pile is going up and up and up, and then we spend it on what we're saving, what we saved for, right?

And then we reset to zero, and then we save again for.

I like a car, okay?

We save for the car and we save up for that car.

Save up, save up, save up.

We're going to pay cash for that car.

And then we buy the car, we go back to zero, we immediately start saving again for the next vehicle down the road.

And the debtor, like you said, does the opposite.

You know, the debtor, we say, well, we'll finance it, and we finance it.

So we go down to the negative, and then over time, I'll pay off, pay off, and we get to zero eventually, and then we go finance the next car, reset down.

So it's like an opposite resetting, the saving and the.

The saver and the debtor.

And each time you're constantly going to zero.

And what I loved when I first heard about the infinite banking concept and the vehicle through which to use it was the fact that I didn't have to reset at zero every time after that, and I could reset in the positive every time I'm Resetting.

I actually had more money there than I had before because it was growing along the way in where I was warehousing my money.

So I want to take a minute and let's contrast.

Let's just pick five categories of places we put our money and let's contrast that, Joe, and talk about maybe the top five benefits, for lack of better words.

Right.

The top five ways in which that money can be looked at.

Okay, so for the listeners, let's we're going to talk about cash and savings.

We're going to talk about CDs, we'll talk about market accounts, any market account, anything investment qualified, non qualified, traditional stock market market accounts.

Let's talk about real estate.

And then we'll talk about the very last one, which is what we think is one of the best vehicles out there.

Okay, so cash savings, cash is king, as they say.

Let's talk about, say, Joe, you and I were talking about velocity.

Does it check mark these boxes?

Does it check mark a velocity box, a liquidity box, a collateral value box, a guaranteed growth box, and a market correlation box.

And for listeners, we're actually going to put a graph for this up on the screen for on our YouTube channel.

So you better visualize this a little bit better too.

And we'll probably have a link you can download in the description if you want to download this graphic to just reference and see.

So cash velocity, liquidity, collateral value, guaranteed growth and market correlation.

What do you think, Joe?

So as I said a minute ago, if you move your dollar from box A to box B, you're not creating velocity.

You're not allowing that dollar to do any more than one task at one time.

So you want your money moving in such a way that it's doing more than one thing.

So in a life insurance policy, contrasting that for just a second, my dollar creates cash equity in the policy, cash value in the policy, but it also creates a future death benefit which is kind of on reserve.

It's in escrow, it's going to be paid out 100 years from now.

Right.

And it's also creating tax invisibility.

It's all also creating collateral value.

It's also creating spinning out dividends, so forth.

So trying to give you an idea of what we're talking about here.

Now let's talk about the other aspects.

Can you have money sitting in a savings account?

And back in my day we used to call it a passbook loan.

So you have money in savings and then you go to the bank and you say, can I take A loan against my savings.

The banker says, sure, we're paying you 3% on your savings account this year.

Let's say it's a CD, we're paying you 2% or 3% for the next year, year and a half, two years, whatever the period is, we will give you a loan that's probably a couple of points more than what you're earning in the savings.

So you're going to continue to earn an interest rate on the cash, but we're going to charge you so that you have access.

Now, does the math work?

We can easily show where the math works and what the tipping point is where the math doesn't work.

But the point is, if you're creating more than one benefit from $1, you're making more money.

If you have money sitting, you're making less money.

The person who has the money sitting makes less.

The person who's controlling the banking equation, the banker, the lender, is making more money.

So you want to look for velocity again.

If you're interested in building wealth in a more dynamic way and staying ahead of inflation and staying ahead of your lifestyle, which is probably ahead of inflation, you want to make more money, obviously next year than you made this year, because costs go up everywhere.

So if you have money sitting and it's earning zero, but at least you feel content that the money is safe.

Well, yeah, it's safe, except it's losing three or four or five points a year due to inflation.

So you're able to buy less in the future with that same dollar.

So we want to create velocity.

It's a positive attribute.

We want to create velocity so that we'll have more money,

So we can create velocity with cash.

But then it's tied up.

Right now it's tied up unless you collateralize it, as you just said.

But there's a cost to that.

There is a liquidity component to cash.

Because it's cash, it can have a collateral value just like you might collateralize loans with other things with real estate.

Yep.

Cash does not have a guaranteed growth unless it's in some kind of growth vehicle.

Right.

And there it's a very short period of time.

Right.

You might get a CD for three, four years.

Right.

But it'll be a very modest rate.

And then you gotta come in and renew from square one when those several years are over.

Yep.

So you, for your guaranteed growth, you know, we're kind of lumping cash and CDs into one, one pile here for a second.

But for your guaranteed growth, even if it's a high yield savings account.

Let's say high yield savings account, to get that 3% nowadays, 3, 4%, whatever it is, it has to say there.

So there's a guaranteed growth component, but then you sacrifice liquidity for a minute to get that growth.

So that's what we were talking about at the beginning.

You sacrifice one to get the other.

Okay.

And there is.

And there is.

I'm sorry to interrupt you.

There is liquidity in that cd, but it involves your interrupting, interrupting the growth.

And you're actually going to pay an interest penalty by busting up that CD before its due date.

So, yeah, you can have liquidity, but you're paying a penalty for it.

Right, Right.

So cash and CDs are, are a lot the same.

Right.

Your savings account or put money in the CDs High Yield Savings account.

So they all kind of have the same effect.

You're, you're trading one benefit for another.

If I want guaranteed growth, I sacrifice some liquidity.

If I want 100% liquidity, I probably need to sacrifice something else and so forth.

Now let's bring in where I would say most people in some capacity put their money, qualified accounts.

Let's talk, okay.

Retirement accounts, investment products of some kind, I'm going to play the stock market, etc.

Now, a little caveat is we are not sitting here saying don't put your money into any of these vehicles today.

We're saying we're contrasting the different benefits or different hang ups, understanding what do I lose and what do I gain by putting my money in these different vehicles.

Exactly.

Okay.

Exactly.

All right, so market accounts.

Let's just lump it all into market accounts.

And Joe, I know because we have certain boundaries we need to stay within on that conversation.

I'm going to let you handle the market account conversation.

Sure.

So this, it's a very, it's a very generic conversation, but I'll, I'm going to divide market accounts up into two generic categories.

One is a tax deductible plan, like a 401k, like an IRA, like a pension, like a simple.

You're going to take a tax deduction for the money going in.

And as your money grows and grows and grows over a long period of time, you get to the other end at retirement, 30, 40 years from now, you're going to pay tax on the harvest, as we say, as opposed to the deduction that you're getting on the seed.

So you're getting a small tax deduction on the seed and you're going to pay a Gigantic tax on the harvest.

My bias, red flag alert.

My bias is that you have access to your money.

So my bias would be that you control your money at all times because the person who controls the money makes more money.

If you put your money and lock it up for a long period of time, the people who manage the money may make money.

The people who, who run the companies in which you're investing to buy stocks and so forth are making money.

But you don't have access or liquidity.

You may or may not achieve your financial goal with that market account because you have no idea what the market account will do from now until 30 years from now.

The hope is that markets will be very healthy on the day that you retire.

We're going to hope that you don't have a 30% correction on the day that you retire.

But as far as market accounts are concerned, you have access to liquidity to cash in a market account.

If it's a taxable account, it's called a margin.

So you can set up a margin where you borrow against your market account.

Now, there are some pros and cons to that.

If you are borrowing aggressively, your broker may come back and say, hey, we have a margin call because you borrowed too much money and now the market is adjusted.

We have to have you send us a check for 10, 20, 30, 50, $100,000, whatever it is.

Well, if I had that kind of money in my checking account, I wouldn't be borrowing on margin.

Yeah, but that's the downside.

So no problem.

We'll just sell off some of your securities.

But wait a minute, don't sell them now because the market's down.

Well, we have no choice because we have to settle this margin within the next couple of days in order to keep you at the appropriate loan to value on your margin.

So you can access money in your market account, but there are rules and there are penalties for doing it the wrong way or at the wrong market timing.

Right now, do you have access and liquidity on a taxable account like a 401k?

Yeah, you do.

You could borrow up to $50,000 and no more.

Well, gee, I've got $400,000 in my 401.

Can I borrow against that?

Not really.

Not and pay it back.

I mean, you can declare a hardship.

You can take money to avoid bankruptcy.

You have different exceptions, but those involve tax and penalty.

So just looking at the very narrow area where you can borrow $50,000, you have to agree to have it paid back out of your paycheck.

It's got to be paid back in five years or less.

And you have to pay the rate that is set by your plan sponsor.

That rate could be anything.

It could be 6%, 8%, 10%.

It depends on what your plan sponsor allows.

So it's a very structured type of loan and there are even more details about that.

Suffice to say, it's not a simple process and you're not getting free money.

Right.

It's not the ideal place, especially because of the limits on your access to your own money.

Of course, logic would say, well, why can't I have access to my own money?

Well, because you agreed to give up access for the most part because you wanted a tax deduction.

Right.

So you want to be careful when you're going in these plans that you're going into it with your eyes open.

You're not going into it because your friends and co workers say you should.

Because, because people advertise the wonderful benefits of a tax deduction.

Because the first thing I want you to know is what is your tax bracket?

What if you've got a wife and six kids or a spouse and six kids and you're in a 10% tax bracket?

Who cares about a tax deduction?

So let's look at all the pieces of the puzzle, all the aspects of your finances before we say I'm going to put every dollar I have in my 401k and not have access to it for 30 years.

Right?

Right.

Yeah.

I mean you have your velocity potential.

You have limited liquidity in most of these types of accounts.

Collateral value.

Sure.

Guaranteed growth.

Absolutely not.

And yes, it is market correlated.

Absolutely.

And so you have risk.

Right.

So you trade guarantees for risk.

Right.

In that vehicle.

And so you can't keep all five buckets.

It's not possible in this one.

So the next one just to touch on is real estate.

Real estate has been a very popular way for people to create wealth, create passive income, place their money in real estate in various forms.

I'm not even going to break it down.

There's so many types of real estate investing you can do these days that, that you just need to find what works for you if you're going to get into it.

I love real estate investing.

I've done my fair share of it.

And so I'm not anti real estate investing.

But to talk about, okay, velocity, you know, I could say, well we, we could do velocity.

You could build velocity by continuing to buy properties.

You know, we continue to buy properties, we continue to pay off the properties.

We continue to increase our cash flow, this kind of thing.

So yes, liquidity, you know, limited liquidity.

Definitely not today's liquidity.

Potential access.

Right.

If you're going to go get first lien, HELOC or HELOC or things like that.

If you need immediate lending value that

you're going to or refinancing as people finance real estate.

Yep.

Cash out, refi.

We do.

And there's your former or so.

Right.

Liquidity, Liquidate collateral value.

Yes.

Because you can get other loans based on that.

So it has some collateral value, but it's also dependent on other factors.

Not just that in and of itself.

You know what your credit look like, how much is there, how much is available?

What's the market say your property's worth today?

That dictates today's collateral value.

That could change overnight.

And we've seen it happen.

Guaranteed growth.

Absolutely not.

You do have a reliable.

A projected growth, but there's no guarantee.

Real estate is much like markets where you're dependent on what.

What can the market handle?

What's my property worth today?

I always talk to real estate investors about, let's not confuse what you owe to what it's worth.

Because people say, oh, well, I have.

My property's worth a million.

I say, great.

How much do you owe the bank?

I owe them two dollars.

Great.

If you stop paying that two dollars, how much of that property does the bank own?

100% of it.

Right.

They're not going to say, oh, we're only going to take $2 worth of your property.

They're taking 100% of that puppy until you pay them that $2 remaining.

So you don't actually have control of it until you really have control of it.

Someone else has control of it.

Okay.

And so that's that.

I think real estate's great.

It does have.

It's.

You trade one thing for the other.

Right.

If you want certain benefits, you have to trade off other benefits.

Control is a big one.

The one thing I love about real estate conceptually is that more people are familiar with real estate as an asset than almost anything else, because the vast majority of our clients own a home.

So they may not think about the pieces, parts and how collateralization works, but people generally understand when I buy a house, I make a down payment and then they get a mortgage for 70, 80, 90%.

So the collateral aspect of it is that I own the home kind of, and I'm taking a mortgage and I'm going to pay the mortgage company back a principal and interest Payment over a number of years.

But at the same time, hopefully my property is going to grow.

And I believe that over time, real estate gives you positive growth.

So on the one hand, I have an asset that's growing in value, but I have a mortgage.

Even if it's going down slowly, I'm still paying the mortgage down.

So whether it's the house I live in or a property that I buy for investment, the collateral value is I could borrow against the asset while the asset still grows.

Now, that's a great concept and a very important principle because that leads us into life insurance.

And of course, I spend years and years and years explaining the fundamentals of life insurance and giving clients a peace of mind and a comfort level to say that life insurance policy is an asset.

That, number one, is unique because there's no other financial asset like it on the planet, period, full stop.

Because a life insurance contract has written in it a schedule of dollar values that will take you from today until age 120 with no variations.

So you could look in your contract and see a guaranteed schedule of dollars that's going to be there regardless of what markets do, regardless of what dividends do, because dividends will be over and above the guarantees.

But now, going back to the collateral, this is really important because you can use your life insurance policy and the values inside it as collateral to obtain the most attractive loan at the most attractive rate, at the most attractive terms of any loan ever created.

And what I mean is, generally speaking, the policies issued this year, in the current generation, you could borrow against your cash values at 4%, and the insurance company's gonna send you a bill once a year, not even once a month, once a year for 4% interest only, period.

Well, when do I pay the principal back?

When you want to interest, if you want to, at your own schedule, that's completely under your control.

Well, what if I die?

Well, then the insurance company will take the loan off the death benefit and give your heirs or your family or your beneficiaries the difference.

It's clean and it's simple.

And really, how does life insurance differ in collateral value to the other big two, which is a stock market account in real estate?

Stock market account has that trapdoor called the margin that they can call if they have to.

Real estate has a possibility of appreciation or depreciation But a life insurance policy can only do one thing.

It can only go up in value year after year and there's nothing you can do about it.

So.

And then going back to velocity, well, I, I have the policy, I have the cash values, I have the dividend being credited every year.

And I have access to loans so that I can go and buy or invest in other areas, the things I like to build wealth with.

I love real estate, I can buy real estate.

I love markets, I can invest in markets.

I love some of these alternatives, I can invest in those.

I have a simple asset which represents my capital base, my line of credit, which is an asset.

And then I have the asset that I'm using to build, quote, unquote, real wealth.

Well, and that's utilizing, right, this other.

We've talked about cash and CDs, and we've talked about market accounts and real estate.

And, and here in, by definition, we're talking about properly structured whole life insurance.

And does this check these boxes we've been talking about today?

You know, does it check the velocity box?

Yes, it does.

Does it check the liquidity box?

Yes, it does.

Does it check the collateral value box?

Yes, the guaranteed growth component to it?

Absolutely.

And is it market correlated?

No, there's no market correlation, which is a good thing in this.

And so that is what Joe and I are advocates about is teaching what is called the infinite banking concept.

It is teaching people how to control the banking function.

Like Joe talked about early on, the banking function in your life, how do you control that banking function?

How do you reposition yourself so that you're back in control?

Maybe.

And maybe you've just been doing what the herd is doing, so to speak.

And how do you reposition yourself to go, okay, well, I need to get back in control because things are just getting out of control.

I feel like the further along I go, the less and less control I have.

Even though I think, you know, it just, it sounds confusing to you.

You're like, well, I'm putting my money in these vehicles.

I'm supposed to have control.

But I feel like the more I do this, the less control I have.

Okay?

And that's why I believe utilizing this infinite banking concept in your own life can be wildly advantageous.

Okay?

And with that, we are going to spin off on the next episode and dig deeper into this talk about privatized banking and why this can be a good thing for you and the different aspects of it.

And we'll break down these five pieces and more.

These are just, we picked the top five.

Mm.

And there's so many more pieces connected to it and benefits connected to it that we could easily.

Right.

Sit and have a three hour conversation about it.

But so in the next episode, that's what we're going to unpack.

Great.

One of the things that I think we'll touch on quickly next time is the fact that some folks are concerned, I'll say the word softly concerned about a long term commitment.

So we'll talk about the long term nature of a life insurance policy and we'll compare and contrast that with the long term nature of your financial life.

So the two actually have more in common with each other than you would think.

So we'll talk about long term commitments as well.

That's great.

All right, well, thanks for listening to make youe Wealth Work here with Joe Pantozzi and I'm Jason K. Powers.

Today was all about uninterrupted compounding and the multitasking dollar keeping your dollars working even while you're using them.

That's what we want to do and why most financial vehicles force you to choose between the benefits instead of stacking them.

So if you want help mapping where your money lives and building a system that lets your dollars do more than one job, head on over to Alphaomegawealth.com podcast to connect with Joe or myself and book a call and we'll help you out.

We'll unpack it and just see what it looks like for you in your own life.

If you found this valuable, please follow or subscribe wherever you're listening, leave a quick review and share this episode with one person who needs to hear it.

Until then, we will see you guys next time.