Wade Borth - Sage Wealth Strategy

In the final installment of the Tough Money series, Wade Borth and David Zapata conclude their deep dive into building a resilient financial strategy. This episode focuses on aligning your investments with your values, understanding risk, and achieving financial freedom through intentional planning. Learn how liquidity serves as the foundation for managing risk and explore the critical balance between savings and investments. Wade and David also discuss strategies for setting freedom numbers, navigating risk, and creating a framework for long-term financial health. Don’t miss this powerful conversation that ties together the principles of the Tough Money curriculum.

Episode Highlights

08:03 - Snorkel vs. deep dive into financial awareness.
10:53 - Income strategy: Cash flow vs. accumulation.
18:08 - Classifying investments: Short-term, mid-term, and forever.
21:14 - Risk, returns, and noise in asset management.
24:27 - Conversation on defining and managing risk.
30:10 - Liquidity as a hedge against risk.
32:14 - Importance of a balanced financial portfolio.
35:10 - Flexible curriculum for financial education.

Episode Resources

• Connect with Wade Borth
• https://www.sagewealthstrategy.com/
• wade@sagewealthstrategy.com
• Connect with David Zapata
• https://www.linkedin.com/in/bydavidazapata/  

In part three of the Tough Money series, Wade Borth and guest David Zapata explore the vital role of liquidity in building financial resilience. They discuss why having liquid, safe assets is foundational to weathering life’s challenges and seizing opportunities. From understanding what truly counts as liquidity to calculating your "days of liquidity," this episode offers practical insights to align your finances with your values and create a robust financial foundation. Don’t miss this crucial conversation, and stay tuned for part four, where they’ll dive into investments and their relationship with liquidity!

Episode Highlights

04:10 - The vital role of liquidity.
05:06 - Foundation is key to financial health.
07:20 - Smart Money’s focus on reserves.
10:49 - Liquidity vs. perceived liquidity.
13:44 - Days of liquidity: a vital metric.
17:18 - Evaluating your savings environment.
21:08 - Tough money and antifragility.
23:00 - Smart money’s approach to liquidity.
25:36 - Balance between cash and investments.

Episode Resources

• Connect with Wade Borth
• https://www.sagewealthstrategy.com/
• wade@sagewealthstrategy.com
• Connect with David Zapata
• https://www.linkedin.com/in/bydavidazapata/  

In part two of the Tough Money series on the Wade Borth Podcast, Wade and guest David Zapata continue their exploration of building financial resilience by diving into debt strategies. They discuss how to evaluate your relationship with debt, classify it effectively, and make intentional decisions aligned with your values and goals. This episode provides practical insights for creating a thoughtful financial framework, whether you're managing personal or business finances. Don’t miss this engaging conversation, and stay tuned for part three, where they’ll explore liquidity and investments!

Episode Highlights
01:06 - Relationship and exercise analogy with money.
01:35 - Luck or strategic financial decisions.
03:32 - Change as a constant factor in financial management.
06:06 - Rethinking debt and financial education nuances.
08:03 - Understanding debt-to-income ratio (DTI).
10:02 - The importance of aligning spending with values.
12:57 - High-income earners and lifestyle financing challenges.
19:26 - Hierarchy and strategic use of debt.
23:33 - Becoming your financial auditor for better management.

Episode Resources

• Connect with Wade Borth
• https://www.sagewealthstrategy.com/
• wade@sagewealthstrategy.com
• Connect with David Zapata
• https://www.linkedin.com/in/bydavidazapata/ 

In this episode of the Wade Borth Podcast, Wade is joined by frequent guest and colleague David Zapata of Factum Financial to delve into the concept of "Tough Money." They explore the importance of building a stronger, more resilient relationship with your finances by addressing foundational habits, improving financial awareness, and preparing for life’s unexpected events. David shares insights from the Tough Money Workbook, breaking down actionable strategies to help you take control of your financial future. Tune in for practical advice and thought-provoking discussion, and stay tuned for part two, where they’ll tackle debt strategies.

Episode Highlights
05:16 - One plus one equals 11 philosophy.
07:46 - Lack of close relationships with money.
09:13 - Concept of “anti-fragility.”
12:44 - Events that impact money management.
14:41 - Financial pressure as strength.
17:50 - Financial management and tough money.
19:57 - Exercise to track income and expenses.
21:47 - Importance of savings rate.

Episode Resources

• Connect with Wade Borth
• https://www.sagewealthstrategy.com/
• wade@sagewealthstrategy.com 

In this episode of The Wade Borth Podcast, Wade tackles a common question: "Should I take a life insurance policy out on my child?" Wade dives deep into the Infinite Banking Concept (IBC), explaining the benefits of starting policies early, teaching financial stewardship, and ensuring guaranteed insurability. He also addresses misconceptions, explores the importance of a family banking system, and shares insights on maintaining control of policies. Whether you're new to IBC or a seasoned listener, this episode is packed with valuable insights for building generational wealth. Tune in, learn, and take the first step toward financial freedom.

Episode Highlights
01:39 - Should I take a policy out on my child?
03:37 - Teaching financial habits through child policies.
06:06 - Grieving a child’s loss: the financial impact.
09:04 - Insuring children for guaranteed insurability.
11:31 - Family banking system and life insurance.
15:04 - Children learning through policy ownership.
18:51 - Retaining policy ownership within the family.
25:17 - Planning for the next generation’s financial freedom.

Episode Resources

• Connect with Wade Borth
• https://www.sagewealthstrategy.com/
• wade@sagewealthstrategy.com 

In this episode, Wade dives into real-life examples of how clients have harnessed the Infinite Banking Concept (IBC) to take control of their finances and create opportunities. From tackling credit card debt and financing real estate purchases to building cash reserves for business growth, Wade shares inspiring stories of clients who transformed their financial lives by redirecting the flow of money back to systems they own and control. Learn how IBC empowers individuals to eliminate dependency on traditional banks, unlock hidden opportunities, and build long-term financial freedom. Tune in to discover how this powerful strategy can work for you!

Episode Highlights
01:43 - Concept of Taking Control Over Debt
03:34 - Six-Year Journey to Debt Control
04:59 - Premiums as a Gateway to Freedom
05:51 - Using Policies to Finance a Vacation Home
08:31 - Seizing Opportunity with Raw Land
12:00 - 2008 Real Estate Opportunity in Las Vegas
16:47 - Maximizing Retirement Benefits
19:19 - Retaining Key Employees and Accessing Capital
22:16 - Entrepreneurial Resilience During COVID
23:32 - Infinite Banking’s Flexibility

Episode Resources

• Connect with Wade Borth
• https://www.sagewealthstrategy.com/
• wade@sagewealthstrategy.com 

Today, Wade welcomes back one of his favorite guests, David Zapata, to discuss the critical value of unstructured loans and guaranteed lines of credit within the Infinite Banking Concept (IBC). They dive into real-life examples, including Wade's personal experience during the 2008 financial crisis and a recent story from one of David's clients. The conversation emphasizes the importance of controlling your own access to capital, rather than relying on third-party lenders who may pull the plug at any time. This episode is a must-listen for anyone interested in understanding how to secure financial certainty in uncertain times.

Episode Highlights
01:37 - David Zapata shares his insights on guaranteed lines of credit through whole life
insurance.
03:29 - The limited view of borrowing from insurance and its broader benefits.
04:43 - Explanation of life insurance company commitments and guarantees.
06:06 - The three guarantees of whole life insurance explained.
09:09 - The irreplaceable value of guaranteed cash growth.
13:00 - How life insurance companies act as custodians of policy value.
17:02 - Managing access to money versus owning access to money.
19:57 - Discussion on the importance of context and setup in financial planning.
21:59 - Example of a real situation where guaranteed access to capital through whole life
insurance made a difference.
23:50 - Practical implications of losing bank-provided lines of credit unexpectedly.
27:45 - Importance of planning and staging of financial resources.
29:32 - Announcement of the upcoming wealth seminar in Scottsdale.

Episode Resources

• Connect with Wade Borth
• https://www.sagewealthstrategy.com/
• wade@sagewealthstrategy.com
• Connect with David Zapata
• https://www.linkedin.com/in/bydavidazapata 

In this episode of the Wade Borth Podcast, he dives deep into the concept of Economic Value Added (EVA), a topic that Nelson Nash highlighted in his book Becoming Your Own Banker. EVA is often misunderstood, but it's crucial for anyone looking to maximize the value of their capital. Wade explores a key 1993 Fortune magazine article that discusses how major companies like Coca-Cola and Quaker Oats utilized EVA to drive profitability. Join Wade as he breaks down the principles of EVA, its relevance to personal finance, and how understanding the true cost of your capital can lead to better financial decisions.

Episode Highlights
00:24 - Nelson Nash mention - Introduction to Economic Value Added (EVA).
01:02 - Fortune Magazine article - Highlighting the 1993 article by Shawn Tully.
02:02 - Key quote from Nelson - “EVA’s basic premise is, if you understand what’s really happening, you’ll know what to do.”
04:58 - Use of capital - Different interpretations of capital’s value and return.
07:41 - EVA in practice - Managers acting like shareholders.
12:10 - Real profitability - Importance of measuring real profitability of operations.
12:51 - Cost of capital overlooked - Emphasis on recognizing the full cost of capital.
13:59 - Example from CSX - Success through understanding and utilizing EVA.
18:17 - Banks and capital returns - Comparison of banks understanding and getting returns on
their capital.
20:22 - Financial statement gap - Missing equity cost in financial statements.
22:59 - Real estate example - Miscalculating profitability by excluding capital costs.
27:03 - Efficiency in assets - Illustration through CSX’s unutilized resources.
32:56 - Importance to individuals - Treating personal capital with the same seriousness as
businesses do.
35:48 - Practical approach - How to apply EVA principles in personal finance.
39:46 - Quaker case study - Realizing the non-free nature of inventories/capital.
43:34 - Main takeaway - Understanding what is really happening to make informed financial
decisions.
44:05 - Nelson Nash’s legacy - Emphasis on controlling the banking function at an individual
level.

Episode Resources

• Connect with Wade Borth
• https://www.sagewealthstrategy.com/
• wade@sagewealthstrategy.com 

Today's episode brings a little bit of sadness as Wade shares a deeply personal story about the unexpected loss faced by a client, highlighting the importance of life insurance in times of crisis. He discusses how life insurance can provide financial certainty and peace of mind during the most vulnerable moments in life. Wade reflects on the value of planning ahead and how life insurance serves as a critical resource, not just for the living, but for those left behind. Tune in as he explores the real impact of being prepared for the unexpected and why it's a vital conversation for everyone.

Episode Highlights
00:28 - Abandoning initial podcast topic due to client experience.
00:52 - Client’s unexpected loss: husband did not return from hospital.
01:35 - True value of life insurance during clients’ most difficult times.
02:01 - Insurance agent’s role in supporting clients.
02:18 - Insight from One America president Dennis Martin.
02:43 - Contrasting insurance companies vs. money managers during crises.
03:52 - Life insurance alleviates financial burden amid grief.
04:45 - Appreciation for the life insurance industry.
05:04 - Importance of planning and its impact on financial certainty.
06:04 - Real-life example of unforeseen scenarios.
06:27 - Emotional and financial support provided by life insurance.
08:14 - Encouragement to have enough life insurance coverage.

Episode Resources

• Connect with Wade Borth
• https://www.sagewealthstrategy.com/
• wade@sagewealthstrategy.com