June 18, 2025 • 27 mins
What happens when AI makes your business model obsolete in six months, but your money is locked away where you can't touch it?
Jamie built a successful medical transcription service over fifteen years. That is ... until AI-powered tools could do the same work in minutes at one-tenth the cost. She had the vision to pivot and the industry knowledge to succeed, but faced a devastating problem. The problem was that her capital was trapped! It was in retirement accounts that she couldn't access without massive penalties.
In this episode, we explore why traditional financial advice can leave business owners asset-rich but opportunity-poor. This becomes a big problem precisely when AI disruption hits their industry. We also reveal the strategy that's helping smart entrepreneurs not just survive the AI revolution. Some even profit from it while their competitors struggle.
Key Quote: "I had money, but not where I could use it when I needed it most."
What You'll Discover:
- How a medical transcription business owner lost a $150K opportunity to compete with AI (and what she could have done differently)
- Why the accounting firm that embraced AI transformation thrived while similar businesses failed
- The story behind Raj's $2.8M fleet upgrade that cut operating costs by 23% in 18 months
- How to access capital for business pivots without penalties, taxes, or bank approvals
- Why the pace of AI change makes traditional business financing dangerously obsolete
Listen now to discover how to build wealth that works WITH your business evolution instead of against it.
Ready to assess your AI readiness? Check out this week's Wealthy Wednesday for the AI-Ready Business Financial Assessment.
Interested in our Freedom Retreat? Text 'Freedom' to 513-447-6501 to begin the application process.
00:00 Introduction: Facing the AI Revolution
01:43 Meet Jamie: A Business Transformed by AI
04:41 The Financial Strategy for AI Disruption
07:41 Case Study: Michael vs. Roma
15:38 Raj's AI Fleet Transformation
18:27 The Power of Financial Flexibility
21:51 Conclusion: Preparing for the AI Future
Watch On YouTube: https://youtu.be/9MA2VZBs8Wg
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:01):
I didn't see it coming, Jamie told me,
her voice ripe with emotion. It's just
six months our entire business model
became obsolete. Today
we're facing the AI revolution head on.
Revealing how smart business owners are
using a financial strategy that not
only protects them from technological
(00:23):
difficulties, disruptions, but also
positions them to profit from it
when their competitors can't. And
again, AI and your
financial system do connect and
should. We're gonna jump into it today.
In a world where chaos seems to reign
(00:44):
supreme,Where uncertainty lurks around
every corner and financial markets are
now more unpredictable than ever, there's
one place you can turn to to find clarity
and control. Welcome to the Wealth Wisdom
Financial Podcast. Hey, I'm Brandon.
And I'm Amanda. Join us as we dive deep
in the world of personal and business
(01:06):
finance to assist you in navigating
through the chaos and building the
financial future you deserve. We believe
when conventional financial. Thinking
doesn't get you where you want to go. You
need wealth wisdom. So if you're ready to
take control of your financial destiny,
tune in to the Wealth Wisdom Financial
Podcast because in a chaotic world, your
(01:28):
money shouldn't be. Subscribe now and
never miss an episode.
Now, before we drive dive in, be sure you
stay tuned all the way to the end. We
always leave the juiciest, amazing
morsels toward the end of the episode.
Today we're going to be talking about a
reality that's reshaping businesses
across every industry. We're going to
(01:49):
start with introducing you to Jamie.
Jamie built a successful medical
transcription service over 15 years with
22 employees and contracts, hospitals
across three states. Her business was
steady and profitable. Jamie had followed
conventional financial wisdom, maxing out
retirement accounts, keeping six months
of operating expenses in savings
(02:10):
accounts. That maybe had a little bit of
an uptick in interest, but then went
right back down. And reinvesting the
rest of everything else in gradual
business growth, right?All those things.
Then AI powered
transcription tools hit the market.
Suddenly software could transcribe
medical records with 98%
(02:32):
accuracy at 1/10 the
cost and five times the speed of the
human transcriptionist that Jamie used.
Jamie's clients began canceling
contracts, citing budget pressures and
the compelling economics of AI
alternatives. It was like watching a
slow motion car crash, Jamie told us.
I could see what was happening, but I
(02:54):
couldn't react fast enough. Jamie
knew her business needed to pivot
quickly. She considered developing a
platform that would integrate the new AI
tools with human oversight to ensure
quality and compliance, a solution her
research suggested would be marketable.
But bringing this vision to life would
require approximately 150,000 in
(03:14):
development cost and staff retraining and
all those things. Her business
savings, that six months of emergency
fund she was told to keep right in that
little savings account, about $50,000.
Taking on debt seemed risky with
declining revenue too. Who's going to
give her loans when her contracts are
being cancelled?Her personal
(03:36):
retirement accounts?Sure, there was some
money there. She could have used that.
But accessing them would trigger
substantial taxes and penalties. Jamie
was telling us I had money, but not
where I could use it when I needed it
most. Jamie's story highlights A
fundamental challenge for business owners
navigating the A I revolution. The
(03:56):
traditional financial advice we hear
everywhere assumes a stable business
environment with gradual,
predictable changes. Have you ever been
in a business environment with gradual,
predictable changes?
Are you asking me?I'm asking everybody.
No, I don't think so. Right. Our
businesses are up and down and all over
(04:17):
the place. They never feel like gradual,
predictable changes. And yet traditional
financial advice assumes those things. It
assumes also that you can lock away
capital for decades without needing
access to it. It assumes the skills and
business models that make you successful
today or remain relevant tomorrow.
Assumption, assumptions, assumptions. You
(04:37):
know what they say about assumptions. Oh,
that yeah, this is a
G-rated podcast. But the AI
revolution is shattering those
assumptions at an unprecedented pace, and
we're here to help you navigate it.
Jamie's experience points to a crucial
truth in the age of A I. Business owners
need financial strategies that offer
(04:59):
both growth and flexibility. The
conventional approach to building wealth
simply doesn't match the
rapidly evolving reality of the A
I transformed industries that are
happening, I don't know, every
everywhere. Yeah, consider some of these
examples of what's happening across the
business landscape right now. A I is
(05:20):
compressing decades of predicted
technological change into mere years,
like the the speed at which things are
changing is accelerating. The
cost of implementing A I is falling
rapidly while capabilities increase
exponentially. If you have been using A
I for a while, you see how it double
S in capacity in two months and.
(05:43):
Like it's getting cheaper to do things
and software tools are popping up that
are less and less bananas. Third, early
adopters are gaining competitive
advantage that may be insurmountable for
late comers. If you create a tool that
gets smarter as more people use it in six
months from now, if your competitor
creates the same tool, you're going to
have a six month advantage on them and
(06:03):
that might be insurmountable for them or
a little vice versa, right?If you're on
the other side and you wait too long. And
then fourth, business models that seem
rock solid for generations are being
fundamentally disrupted. Just think about
medical transcription or anything that
transcribes that technology has been
around, but the speed at which it gets
better and more accurate and it's going
(06:24):
to replace humans and their transcription
abilities very quickly and and need, you
know, the human part of it has to change.
Now to be clear, I don't think it's going
to replace. people. I think there's
an important part of that. We We thought
about this with the when the computers
came around between '96 and 2000, that
people would be replaced, but I don't
(06:44):
think that's going to happen. But we do
have to understand that it is a seismic
shift happening. Yeah, well, but like I
haven't been invited here, but I've heard
from people who have been invited into
factories on other parts of the worldThat
do have a lot more automation and
technology in them, including A I
that football fields and football fields
(07:06):
and football fields of machines
and no humans to be seen. Yeah, right.
Like we're if you've ever seen the
Matrix, we're living right like that
kind of place and if you're
following conventional traditional.
Financial thinking, you got to know that
has to change somewhat, right?So in this
(07:28):
environment, having your capital locked
up in traditional retirement vehicles
where you can't access it without
significant penalties is like trying to
navigate whitewater Rapids in a boat
anchored to the riverbed, right?
I think you've got a story about somebody
named Michael. Yeah. So Michael, he
owns a small accounting firm focused
(07:48):
on tax preparation for individuals and
small businesses. For years, he
contributed the maximum to his SEP
IRA and keeps his business cash
in conservative, low yield accounts to
maintain liquidity. When advanced
AI tax preparation tools emerged,
Michael recognized both a threat and an
(08:11):
opportunity. The threat is basic tax
preparation was being commoditized.
The opportunity by integrating these AI
tools with personalized tax planning
services, he could evolve his
business into a higher value, more
profitable model. The catch?
Implementing the transition would
(08:32):
require approximately $120,000
for new systems, training,
certifications, and marketing the
enhanced service offerings that he was
creating. Michael had
more than enough in his retirement
account, butWithdrawing early would
trigger significant taxes and penalties.
(08:53):
His business's cash reserves were only
about $70,000 and he'd been
prioritizing retirement contributions
over business liquidity because that's
what you do, uh, what they, what people
say. Michael found himself in a
financial straitjacket of
his own making. His
(09:14):
responsible approach to retirement
planning had left him asset rich but
cash poor as the precious moment
that he needed capital flexibility.
That's he needed access to cash. Now
let me contrast Michael's situation with
Roma's. Roma runs a similar accounting
practice, but had structured her finances
(09:35):
differently after learning about the Bank
on Yourself concept. And she does profit
1st and you know, all the things. While
still contributing smartly to traditional
retirement accounts when it made sense,
Roma redirected a portion of her savings
into a properly structured Bank on
Yourself type policy. In over 7 years,
she built up significant cash value in
(09:56):
this policy. When the same
AI tax preparation tools emerged,
Roma saw the same opportunity Michael
did. Same opportunity. The difference?
She was able to access 125,000
from her policy's cash value through
policy loans without penalty taxes
or any impact on her compound growth.
(10:17):
Within six months, Roma had completely
transformed her business model. Her firm
now offers AI-enhanced tax
services bundled with comprehensive
tax planning. Rather than competing with
the $50 tax software, she
provides $5,000 of tax planning
packages to an expanded client
(10:37):
base, where they know they're not just
getting the AI part, right, what this tax
software could do, they're getting more
thorough, long-term planning. The most
powerful part of her storyRoma's
retirement strategies and savings
continued growing uninterrupted during
this business transformation. The policy
loan she took to fund her business
evolution didn't interrupt the
(10:59):
compounding of her policy's cash value.
This is the paradigm shift successful
business owners are making in the age of
AI, moving from rigid financial
structures that have all these buckets,
right?Like all these things. That compete
with the business needs to flexible
strategies that complement your
business's evolution. Precisely what the
Bank On Yourself approach has been
(11:20):
offering for generations. Stay
tuned after the break. We're going to
talk about some of the objections that a
lot of people have when they first hear
about this.
Ready to take the next step towards
securing your financial future?Whether
(11:41):
you're planning for retirement, saving
for your dream home, or you just want to
make your money work harder for you, the
team at Wealth Wisdom Financial are ready
to assist you. And now it's easier than
ever to see how we might give you a boost
on your financial journey. Schedule a 15
minute discovery call with one of us
today and let's discuss your questions
and your financial goals together. Don't
(12:03):
wait any longer. Your financial freedom
awaits. Schedule your discovery call at
www.wealthwisdomfp.com/call.
Now of course we can hear the objections
forming. Isn't this
(12:24):
just leveraging debt to fund your
business?I mean. That's what
people might think, right?Of course. Um,
couldn't Michael just take out a business
loan instead?It's a valid
question, but it misses a crucial
distinction. When you borrow against a
Bank On Yourself policy's cash value,
you're not creating debt in the
(12:45):
traditional sense. You're using
capital you already own as
collateral on your terms
without applying through a bank
lender, right?So you're able to
access that without having to go through
all kinds of paperwork. Yeah, so I'll get
a little technical here. Let's compare
Roma's policy loan approach
(13:07):
with what would have happened if Michael
had pursued a traditional business loan.
First, there's the approval process. Even
with good credit and a successful
business, Michael would facePiece of
paperwork, financial disclosures,
uncertainty, business loans for pivoting
to new models are particularly hard to
secure because lenders prefer financing
proven concepts rather than business
(13:28):
transformations. In contrast, Roma
accessed her policy's cash value in days,
not weeks, with no application or
approval process. Second, there's the
repayment structure. A business loan
for Michael would require fixed monthly
payments, regardless of how quickly
Michael's business transformation
generated returns. If he missed a
(13:49):
payment, his. credit would suffer while
interest penalties accumulate. Roma,
however, has complete flexibility in her
loan repayment schedule. She can make
large payments when business is strong
and smaller ones during transition
periods. There's no risk of default
because she's borrowing against her own
asset. Third, there's the interest
dynamic. With her traditional loan, every
(14:11):
interest dollar Michael pays enriches the
lender at Michael's expense.
When Rama pays interest on her policy
loan, she's essentially paying herself.
The interest does go back to the
insurance company, which in turn impacts
the dividends her policy can receive.
But what about Jamie from our opening
story?How might her situation have been
different with a Bank On Yourself type
(14:31):
policy?If Jamie had been directing
a portion of her business profits into a
properly structured Bank On Yourself
policy over the years instead of
only traditional retirement accounts and
low yield business savings. She would
have built a significant cash value.
When AI disrupted her business
(14:52):
industry, she could have accessed those
funds to further her platform
development without delay.
Instead of falling behind the
technological curve, she could have led
the integration of AI with human
expertise in her field. Rather than
watching her business decline, she might
have emerged as an innovator in an
(15:14):
AI-enhanced medical documentation
services company. And here's the thing
most business owners don't consider until
it's too late. The pace of technological
change isn't slowing down, it's
accelerating. The business
owners who will thrive in the coming
decades are those who can rapidly deploy
capital to adapt when disruptive
(15:37):
technologies emerge. This brings me to
Raj, who runs a mid-sized trucking
company. For years, Raj had heard
about a I powered fleet management and
advanced driver assistance systems, but
considered them a nice to have rather
than an essential. You know that the
the eventually we'll get to fully, you
(15:57):
know, trucks that drive themselves, we'll
just jump there when it becomes a thing,
right?Like why do all these iterative
things in between?So like most business
owners, he just kept focusing on
immediate issues, you know, fuel costs,
driver recruitment, maintenance schedules
then. The technology leap happened
faster than anyone predicted. Several
larger companies implemented
(16:18):
comprehensive AI fleet systems that
integrated predictive maintenance,
real-time route optimization, automated
load matching, and advanced driver
assistance. Suddenly, Raj
faced a choice. Invest in upgrading his
fleet with these AI technologies or watch
his operating costs remain high while
(16:38):
competitors dropped dramatically.
The investment required was substantial.
This is a trucking industry. We're
talking about big trucks, lots of
expensive technology. For him, it was
$2.8 million to retrofit his
fleet of 30 trucks with the integrated A
I systems and train his team to use them
effectively. But Raj had been building up
(16:59):
cash value and multiple bank on yourself
type policies for over a decade, both
personally and in his business. He had
multiple policies, you know, using them
for lots of different things. He was able
to access $700,000 in policy
loans without disrupting his ongoing cash
value growth. That 700,000 became the 25%
down payment to secure
(17:21):
a $2.1 million equipment loan on
reasonable terms using the banks to his
advantage. It was not an either or. It
was a both and in his situation. And
while competitors struggled to secure
financing with higher interest rates or
they had to sell equity to raise capital,
Raj executed his A I fleet
transformation smoothly. Within
18 months, his company's operating costs
(17:43):
had decreased by 23% through
fuel optimization, reduced maintenance
cost, increased driver retention. More
importantly, his on time delivery rates
improved to 99.2%. Can you
imagine?All the deliveries you get, if
they were on time, 99.2% of the time,
he was able to, you know, broadcast this,
(18:04):
let everybody know about it, prove it,
which allowed him to secure some premium
contracts and capture significant market
share from less adaptable competitors.
Ross told us the technological shift
wasn't the real change. The real change
was having capital ready to deploy when
the shift happened. Most business owners
of great instincts are simply hamstrung
(18:25):
by their financial structures. Now I I
do want to. I was thinking about this as
you were talking. So
people often ask me, well, what can I use?
I mean, this isn't as cool as
putting it in the 401K or in the market
or any of this. And and they ask me,
well, what can I do with my money?
(18:47):
How can I use the policy?And
again, it's it's infinite.
It is a infinite banking strategy. Now
do I know?Trucking?Uh, no. I
see where you're going with this. I'm
excited. But, But I, if I had
the access to capital and you know
trucking, that power is infinite of what
(19:08):
you can do, what you can accomplish. And
a lot of times people are just looking
for the, I don't know, 8, 12%,
whatever that average rate of return is
that, that they say in the world. Um,
but it is infinite. If you understand
your business and your business model,and
you have access to capital to
grow when people are shrinking or doing
(19:30):
all kinds of things, that is powerful.
That is a power play, and I can't even
fathom what that would look like. And And
that's why you have to have somebody, I
think, like us that are business owners
that understand or are thinking,
um I don't know, three-dimensional or
something or something. Yeah, yeah
(19:50):
we're we're not sharing anything. We're
not... Thinking about too, right?There's
been robo-advisors for, you know, a long
time already, and we we know the human
element we bring is really powerful, but
we're still leaning into A I just
thinking about how it could work for us.
I was learning from someone recently, his
name is Perry Marshall, and he said these
words that will forever be ingrained in
(20:11):
my memory. In the age of A I, if you
can imagine it, you can create it.
Like never before. This is so true. I
feel like Walt Disney, right?Like he
imagined something, he would create it.
We're all Walt Disney now, right?Like if
you can imagine it, you can create it.
However, if you don't have the money to
put into it, you don't have the financial
freedom to have the time freedom to make
(20:33):
that imagination real, you're hamstrung.
And so this is the critical insight for
all this whole episode. In the age of AI,
financial agility, financial
flexibility is not just a convenience.
It's not just so want to have. It's not
not just a nice to have. It is a
competitive necessity.
Financial agility is a competitive
(20:55):
necessity and we know nothing better
than the bank on yourself strategy that
helps create financial flexibility in
business owners lives. Yeah, I think
that's that's a mic drop right there. So
the stories of Jamie, of Michael,
and of Roma. Roma, is that her name?Roma,
yeah. And Raj highlight a crucial
(21:15):
truth for business owners navigating the
AI revolution. Your financial strategy
isn't separate from your business
strategy. It's an integral part of it.
It's so interconnected. Traditional
wealth building approaches force business
owners to choose between saving for the
future and maintaining capital
(21:36):
flexibility for today's opportunities and
challenges. They create artificial
barriers between your personal financial
security and your business's
adaptability. And maybe that's bite sign.
I don't know. Maybe. The banking yourself
strategy recognizes the reality that
business owners face in the age of a I.
(21:57):
The ability to deploy capital quickly
when technology shifts may be the
difference between thriving and merely
surviving or worse. Yeah,
and it's not about rejecting traditional
retirement vehicles entirely. It's about
creating a mix. that works for
you and your financial strategy to make
(22:18):
the business the life that you want. The
business owners we work with who've
embraced this kind of approach share
that, you know, this this common idea
that their long-term financial security
and their ability to adapt to
technological change are working
together, not competing with each other.
And if you've been catching this theme
(22:39):
this month, this is episode three in
the series of future-proofing your
business. You'll notice future-proofing
is a lot of connected. If I if you're
watching the video, you can see my hands
are are intertwined. This is what we've
come to at the end of each episode this
month so far and probably next episode.
It's retirement planning and business
growth connected, college planning and
(23:02):
funding and business growth connected, A
I and technology revolution and all of
that and your personal finance connected.
So remember Jamie's story from our from
the very beginning. Jamie ultimately did
secure some private financing for
platform development, but at the cost of
giving up 30% equity in her business,
(23:22):
she successfully transitioned to that A I
integrated service model where there is
an A I to do transcription and then human
oversight to make sure it was accurate.
But much of the financial upside went to
her investors rather than to her and
her family. We don't want you for that
for you. That is not inevitable.
It was the direct result of a financial
(23:42):
strategy that wasn't designed for the
rapidly evolving business landscape that
we now inhabit. But your future can be
different. Your options can be different.
With the bank and yourself strategy,
business owners all over America are
building wealth for the future while
maintaining the capital flexibility to
pivot, adapt, innovate with a I and
(24:02):
whatever else comes in terms of
technology in the future for their
industry. And it eventually will.
change, like every business will probably
change over the next five to 10 years.
Are you ready for it?That's the question.
And what are you going to do to get ready?
Well, and maybe I'll jump in. So I'll
keep going. Okay. What are you going to
do to get ready?So if you're wondering
(24:23):
how the Banking Yourself strategy might
help prepare your business for the AI
revolution, that is not coming, it's
here. We've created something special for
you. This Wednesday, we're sharing the AI
Ready Business Financial
Assessment. that will help you evaluate
current financial structures and identify
(24:43):
potential vulnerabilities and
opportunities. It includes the five
critical questions every business owner
needs to answer about the financial
readiness for AI disruption, plus
a framework for calculating how much
accessible capital you need for your
industry's likely AI transformation.
(25:04):
Just head over to Wealth Wisdom Financial
Community for accessing this resource as
a premium member. You also get access to
a library of resources and our monthly
group coaching call. Bottom line today,
in the age of AI, having your capital
locked up where you can't access it could
be the difference between seizing
opportunities and watching them pass by.
(25:25):
We also want to give you the chance to
seize an opportunity and not let it pass
by. This August, and
shortly from now, maybe like less than
two months from when this episode drops,
we're going to be hosting a freedom
retreat and you're
invited. It's an intimate retreat.
Spaces are limited. And if you're
catching this and you're serious about
(25:46):
using your business to create all the
freedoms, financial freedom, relational
freedom, emotional freedom, mental
freedom, spiritual freedom, time,
freedom, all the things. then text the
word freedom to
513-447-6501.
We'd love to share more. And we do
have some amazing
tools that
(26:09):
complement the use of AI in a private,
restricted way that we're gonna be
bringing to this retreat to help heighten
the human experience. We can't wait to
share those with you. If you're there,
we're gonna be, you know,Helping people
level up on their freedom journey in
whatever is coming next, that next stage
and how you can make sure you're ready
for it. And we might be using AI. No, we
(26:31):
totally are using AI. I just said that.
So text the word freedom to
513-447-6501.
And again, the A I will be used in a
private, secure way to help enhance the
human experience, not detract from it.
And I'm really excited about how that
works. Again, freedom.
Is the word you text. The number is
513-447-6501.
(26:55):
Thanks for joining us. Hit that subscribe
button and live long and
profit. Now the stories in today's
episodes are kind of like Law and Order
fictional, but and they do not depict
any. Actual person. I mean there are
people and and themes that we have and
people that we know that are similar,
(27:16):
but they are not an actual person. The
topics presented in this podcast are for
general information only and not for the
purpose of providing legal, accounting,
AI, investment advice.
I don't know all the advice. Please
consult a professional that knows
artificial intelligence more
(27:36):
and your specific situation and your
specific situation.
I didn't see it coming, Jamie told me,
her voice ripe with emotion. It's just
six months our entire business model
became obsolete. Today
we're facing the AI revolution head on.
Revealing how smart business owners are
using a financial strategy that not
only protects them from technological
(00:23):
difficulties, disruptions, but also
positions them to profit from it
when their competitors can't. And
again, AI and your
financial system do connect and
should. We're gonna jump into it today.
In a world where chaos seems to reign
(00:44):
supreme,Where uncertainty lurks around
every corner and financial markets are
now more unpredictable than ever, there's
one place you can turn to to find clarity
and control. Welcome to the Wealth Wisdom
Financial Podcast. Hey, I'm Brandon.
And I'm Amanda. Join us as we dive deep
in the world of personal and business
(01:06):
finance to assist you in navigating
through the chaos and building the
financial future you deserve. We believe
when conventional financial. Thinking
doesn't get you where you want to go. You
need wealth wisdom. So if you're ready to
take control of your financial destiny,
tune in to the Wealth Wisdom Financial
Podcast because in a chaotic world, your
(01:28):
money shouldn't be. Subscribe now and
never miss an episode.
Now, before we drive dive in, be sure you
stay tuned all the way to the end. We
always leave the juiciest, amazing
morsels toward the end of the episode.
Today we're going to be talking about a
reality that's reshaping businesses
across every industry. We're going to
(01:49):
start with introducing you to Jamie.
Jamie built a successful medical
transcription service over 15 years with
22 employees and contracts, hospitals
across three states. Her business was
steady and profitable. Jamie had followed
conventional financial wisdom, maxing out
retirement accounts, keeping six months
of operating expenses in savings
(02:10):
accounts. That maybe had a little bit of
an uptick in interest, but then went
right back down. And reinvesting the
rest of everything else in gradual
business growth, right?All those things.
Then AI powered
transcription tools hit the market.
Suddenly software could transcribe
medical records with 98%
(02:32):
accuracy at 1/10 the
cost and five times the speed of the
human transcriptionist that Jamie used.
Jamie's clients began canceling
contracts, citing budget pressures and
the compelling economics of AI
alternatives. It was like watching a
slow motion car crash, Jamie told us.
I could see what was happening, but I
(02:54):
couldn't react fast enough. Jamie
knew her business needed to pivot
quickly. She considered developing a
platform that would integrate the new AI
tools with human oversight to ensure
quality and compliance, a solution her
research suggested would be marketable.
But bringing this vision to life would
require approximately 150,000 in
(03:14):
development cost and staff retraining and
all those things. Her business
savings, that six months of emergency
fund she was told to keep right in that
little savings account, about $50,000.
Taking on debt seemed risky with
declining revenue too. Who's going to
give her loans when her contracts are
being cancelled?Her personal
(03:36):
retirement accounts?Sure, there was some
money there. She could have used that.
But accessing them would trigger
substantial taxes and penalties. Jamie
was telling us I had money, but not
where I could use it when I needed it
most. Jamie's story highlights A
fundamental challenge for business owners
navigating the A I revolution. The
(03:56):
traditional financial advice we hear
everywhere assumes a stable business
environment with gradual,
predictable changes. Have you ever been
in a business environment with gradual,
predictable changes?
Are you asking me?I'm asking everybody.
No, I don't think so. Right. Our
businesses are up and down and all over
(04:17):
the place. They never feel like gradual,
predictable changes. And yet traditional
financial advice assumes those things. It
assumes also that you can lock away
capital for decades without needing
access to it. It assumes the skills and
business models that make you successful
today or remain relevant tomorrow.
Assumption, assumptions, assumptions. You
(04:37):
know what they say about assumptions. Oh,
that yeah, this is a
G-rated podcast. But the AI
revolution is shattering those
assumptions at an unprecedented pace, and
we're here to help you navigate it.
Jamie's experience points to a crucial
truth in the age of A I. Business owners
need financial strategies that offer
(04:59):
both growth and flexibility. The
conventional approach to building wealth
simply doesn't match the
rapidly evolving reality of the A
I transformed industries that are
happening, I don't know, every
everywhere. Yeah, consider some of these
examples of what's happening across the
business landscape right now. A I is
(05:20):
compressing decades of predicted
technological change into mere years,
like the the speed at which things are
changing is accelerating. The
cost of implementing A I is falling
rapidly while capabilities increase
exponentially. If you have been using A
I for a while, you see how it double
S in capacity in two months and.
(05:43):
Like it's getting cheaper to do things
and software tools are popping up that
are less and less bananas. Third, early
adopters are gaining competitive
advantage that may be insurmountable for
late comers. If you create a tool that
gets smarter as more people use it in six
months from now, if your competitor
creates the same tool, you're going to
have a six month advantage on them and
(06:03):
that might be insurmountable for them or
a little vice versa, right?If you're on
the other side and you wait too long. And
then fourth, business models that seem
rock solid for generations are being
fundamentally disrupted. Just think about
medical transcription or anything that
transcribes that technology has been
around, but the speed at which it gets
better and more accurate and it's going
(06:24):
to replace humans and their transcription
abilities very quickly and and need, you
know, the human part of it has to change.
Now to be clear, I don't think it's going
to replace. people. I think there's
an important part of that. We We thought
about this with the when the computers
came around between '96 and 2000, that
people would be replaced, but I don't
(06:44):
think that's going to happen. But we do
have to understand that it is a seismic
shift happening. Yeah, well, but like I
haven't been invited here, but I've heard
from people who have been invited into
factories on other parts of the worldThat
do have a lot more automation and
technology in them, including A I
that football fields and football fields
(07:06):
and football fields of machines
and no humans to be seen. Yeah, right.
Like we're if you've ever seen the
Matrix, we're living right like that
kind of place and if you're
following conventional traditional.
Financial thinking, you got to know that
has to change somewhat, right?So in this
(07:28):
environment, having your capital locked
up in traditional retirement vehicles
where you can't access it without
significant penalties is like trying to
navigate whitewater Rapids in a boat
anchored to the riverbed, right?
I think you've got a story about somebody
named Michael. Yeah. So Michael, he
owns a small accounting firm focused
(07:48):
on tax preparation for individuals and
small businesses. For years, he
contributed the maximum to his SEP
IRA and keeps his business cash
in conservative, low yield accounts to
maintain liquidity. When advanced
AI tax preparation tools emerged,
Michael recognized both a threat and an
(08:11):
opportunity. The threat is basic tax
preparation was being commoditized.
The opportunity by integrating these AI
tools with personalized tax planning
services, he could evolve his
business into a higher value, more
profitable model. The catch?
Implementing the transition would
(08:32):
require approximately $120,000
for new systems, training,
certifications, and marketing the
enhanced service offerings that he was
creating. Michael had
more than enough in his retirement
account, butWithdrawing early would
trigger significant taxes and penalties.
(08:53):
His business's cash reserves were only
about $70,000 and he'd been
prioritizing retirement contributions
over business liquidity because that's
what you do, uh, what they, what people
say. Michael found himself in a
financial straitjacket of
his own making. His
(09:14):
responsible approach to retirement
planning had left him asset rich but
cash poor as the precious moment
that he needed capital flexibility.
That's he needed access to cash. Now
let me contrast Michael's situation with
Roma's. Roma runs a similar accounting
practice, but had structured her finances
(09:35):
differently after learning about the Bank
on Yourself concept. And she does profit
1st and you know, all the things. While
still contributing smartly to traditional
retirement accounts when it made sense,
Roma redirected a portion of her savings
into a properly structured Bank on
Yourself type policy. In over 7 years,
she built up significant cash value in
(09:56):
this policy. When the same
AI tax preparation tools emerged,
Roma saw the same opportunity Michael
did. Same opportunity. The difference?
She was able to access 125,000
from her policy's cash value through
policy loans without penalty taxes
or any impact on her compound growth.
(10:17):
Within six months, Roma had completely
transformed her business model. Her firm
now offers AI-enhanced tax
services bundled with comprehensive
tax planning. Rather than competing with
the $50 tax software, she
provides $5,000 of tax planning
packages to an expanded client
(10:37):
base, where they know they're not just
getting the AI part, right, what this tax
software could do, they're getting more
thorough, long-term planning. The most
powerful part of her storyRoma's
retirement strategies and savings
continued growing uninterrupted during
this business transformation. The policy
loan she took to fund her business
evolution didn't interrupt the
(10:59):
compounding of her policy's cash value.
This is the paradigm shift successful
business owners are making in the age of
AI, moving from rigid financial
structures that have all these buckets,
right?Like all these things. That compete
with the business needs to flexible
strategies that complement your
business's evolution. Precisely what the
Bank On Yourself approach has been
(11:20):
offering for generations. Stay
tuned after the break. We're going to
talk about some of the objections that a
lot of people have when they first hear
about this.
Ready to take the next step towards
securing your financial future?Whether
(11:41):
you're planning for retirement, saving
for your dream home, or you just want to
make your money work harder for you, the
team at Wealth Wisdom Financial are ready
to assist you. And now it's easier than
ever to see how we might give you a boost
on your financial journey. Schedule a 15
minute discovery call with one of us
today and let's discuss your questions
and your financial goals together. Don't
(12:03):
wait any longer. Your financial freedom
awaits. Schedule your discovery call at
www.wealthwisdomfp.com/call.
Now of course we can hear the objections
forming. Isn't this
(12:24):
just leveraging debt to fund your
business?I mean. That's what
people might think, right?Of course. Um,
couldn't Michael just take out a business
loan instead?It's a valid
question, but it misses a crucial
distinction. When you borrow against a
Bank On Yourself policy's cash value,
you're not creating debt in the
(12:45):
traditional sense. You're using
capital you already own as
collateral on your terms
without applying through a bank
lender, right?So you're able to
access that without having to go through
all kinds of paperwork. Yeah, so I'll get
a little technical here. Let's compare
Roma's policy loan approach
(13:07):
with what would have happened if Michael
had pursued a traditional business loan.
First, there's the approval process. Even
with good credit and a successful
business, Michael would facePiece of
paperwork, financial disclosures,
uncertainty, business loans for pivoting
to new models are particularly hard to
secure because lenders prefer financing
proven concepts rather than business
(13:28):
transformations. In contrast, Roma
accessed her policy's cash value in days,
not weeks, with no application or
approval process. Second, there's the
repayment structure. A business loan
for Michael would require fixed monthly
payments, regardless of how quickly
Michael's business transformation
generated returns. If he missed a
(13:49):
payment, his. credit would suffer while
interest penalties accumulate. Roma,
however, has complete flexibility in her
loan repayment schedule. She can make
large payments when business is strong
and smaller ones during transition
periods. There's no risk of default
because she's borrowing against her own
asset. Third, there's the interest
dynamic. With her traditional loan, every
(14:11):
interest dollar Michael pays enriches the
lender at Michael's expense.
When Rama pays interest on her policy
loan, she's essentially paying herself.
The interest does go back to the
insurance company, which in turn impacts
the dividends her policy can receive.
But what about Jamie from our opening
story?How might her situation have been
different with a Bank On Yourself type
(14:31):
policy?If Jamie had been directing
a portion of her business profits into a
properly structured Bank On Yourself
policy over the years instead of
only traditional retirement accounts and
low yield business savings. She would
have built a significant cash value.
When AI disrupted her business
(14:52):
industry, she could have accessed those
funds to further her platform
development without delay.
Instead of falling behind the
technological curve, she could have led
the integration of AI with human
expertise in her field. Rather than
watching her business decline, she might
have emerged as an innovator in an
(15:14):
AI-enhanced medical documentation
services company. And here's the thing
most business owners don't consider until
it's too late. The pace of technological
change isn't slowing down, it's
accelerating. The business
owners who will thrive in the coming
decades are those who can rapidly deploy
capital to adapt when disruptive
(15:37):
technologies emerge. This brings me to
Raj, who runs a mid-sized trucking
company. For years, Raj had heard
about a I powered fleet management and
advanced driver assistance systems, but
considered them a nice to have rather
than an essential. You know that the
the eventually we'll get to fully, you
(15:57):
know, trucks that drive themselves, we'll
just jump there when it becomes a thing,
right?Like why do all these iterative
things in between?So like most business
owners, he just kept focusing on
immediate issues, you know, fuel costs,
driver recruitment, maintenance schedules
then. The technology leap happened
faster than anyone predicted. Several
larger companies implemented
(16:18):
comprehensive AI fleet systems that
integrated predictive maintenance,
real-time route optimization, automated
load matching, and advanced driver
assistance. Suddenly, Raj
faced a choice. Invest in upgrading his
fleet with these AI technologies or watch
his operating costs remain high while
(16:38):
competitors dropped dramatically.
The investment required was substantial.
This is a trucking industry. We're
talking about big trucks, lots of
expensive technology. For him, it was
$2.8 million to retrofit his
fleet of 30 trucks with the integrated A
I systems and train his team to use them
effectively. But Raj had been building up
(16:59):
cash value and multiple bank on yourself
type policies for over a decade, both
personally and in his business. He had
multiple policies, you know, using them
for lots of different things. He was able
to access $700,000 in policy
loans without disrupting his ongoing cash
value growth. That 700,000 became the 25%
down payment to secure
(17:21):
a $2.1 million equipment loan on
reasonable terms using the banks to his
advantage. It was not an either or. It
was a both and in his situation. And
while competitors struggled to secure
financing with higher interest rates or
they had to sell equity to raise capital,
Raj executed his A I fleet
transformation smoothly. Within
18 months, his company's operating costs
(17:43):
had decreased by 23% through
fuel optimization, reduced maintenance
cost, increased driver retention. More
importantly, his on time delivery rates
improved to 99.2%. Can you
imagine?All the deliveries you get, if
they were on time, 99.2% of the time,
he was able to, you know, broadcast this,
(18:04):
let everybody know about it, prove it,
which allowed him to secure some premium
contracts and capture significant market
share from less adaptable competitors.
Ross told us the technological shift
wasn't the real change. The real change
was having capital ready to deploy when
the shift happened. Most business owners
of great instincts are simply hamstrung
(18:25):
by their financial structures. Now I I
do want to. I was thinking about this as
you were talking. So
people often ask me, well, what can I use?
I mean, this isn't as cool as
putting it in the 401K or in the market
or any of this. And and they ask me,
well, what can I do with my money?
(18:47):
How can I use the policy?And
again, it's it's infinite.
It is a infinite banking strategy. Now
do I know?Trucking?Uh, no. I
see where you're going with this. I'm
excited. But, But I, if I had
the access to capital and you know
trucking, that power is infinite of what
(19:08):
you can do, what you can accomplish. And
a lot of times people are just looking
for the, I don't know, 8, 12%,
whatever that average rate of return is
that, that they say in the world. Um,
but it is infinite. If you understand
your business and your business model,and
you have access to capital to
grow when people are shrinking or doing
(19:30):
all kinds of things, that is powerful.
That is a power play, and I can't even
fathom what that would look like. And And
that's why you have to have somebody, I
think, like us that are business owners
that understand or are thinking,
um I don't know, three-dimensional or
something or something. Yeah, yeah
(19:50):
we're we're not sharing anything. We're
not... Thinking about too, right?There's
been robo-advisors for, you know, a long
time already, and we we know the human
element we bring is really powerful, but
we're still leaning into A I just
thinking about how it could work for us.
I was learning from someone recently, his
name is Perry Marshall, and he said these
words that will forever be ingrained in
(20:11):
my memory. In the age of A I, if you
can imagine it, you can create it.
Like never before. This is so true. I
feel like Walt Disney, right?Like he
imagined something, he would create it.
We're all Walt Disney now, right?Like if
you can imagine it, you can create it.
However, if you don't have the money to
put into it, you don't have the financial
freedom to have the time freedom to make
(20:33):
that imagination real, you're hamstrung.
And so this is the critical insight for
all this whole episode. In the age of AI,
financial agility, financial
flexibility is not just a convenience.
It's not just so want to have. It's not
not just a nice to have. It is a
competitive necessity.
Financial agility is a competitive
(20:55):
necessity and we know nothing better
than the bank on yourself strategy that
helps create financial flexibility in
business owners lives. Yeah, I think
that's that's a mic drop right there. So
the stories of Jamie, of Michael,
and of Roma. Roma, is that her name?Roma,
yeah. And Raj highlight a crucial
(21:15):
truth for business owners navigating the
AI revolution. Your financial strategy
isn't separate from your business
strategy. It's an integral part of it.
It's so interconnected. Traditional
wealth building approaches force business
owners to choose between saving for the
future and maintaining capital
(21:36):
flexibility for today's opportunities and
challenges. They create artificial
barriers between your personal financial
security and your business's
adaptability. And maybe that's bite sign.
I don't know. Maybe. The banking yourself
strategy recognizes the reality that
business owners face in the age of a I.
(21:57):
The ability to deploy capital quickly
when technology shifts may be the
difference between thriving and merely
surviving or worse. Yeah,
and it's not about rejecting traditional
retirement vehicles entirely. It's about
creating a mix. that works for
you and your financial strategy to make
(22:18):
the business the life that you want. The
business owners we work with who've
embraced this kind of approach share
that, you know, this this common idea
that their long-term financial security
and their ability to adapt to
technological change are working
together, not competing with each other.
And if you've been catching this theme
(22:39):
this month, this is episode three in
the series of future-proofing your
business. You'll notice future-proofing
is a lot of connected. If I if you're
watching the video, you can see my hands
are are intertwined. This is what we've
come to at the end of each episode this
month so far and probably next episode.
It's retirement planning and business
growth connected, college planning and
(23:02):
funding and business growth connected, A
I and technology revolution and all of
that and your personal finance connected.
So remember Jamie's story from our from
the very beginning. Jamie ultimately did
secure some private financing for
platform development, but at the cost of
giving up 30% equity in her business,
(23:22):
she successfully transitioned to that A I
integrated service model where there is
an A I to do transcription and then human
oversight to make sure it was accurate.
But much of the financial upside went to
her investors rather than to her and
her family. We don't want you for that
for you. That is not inevitable.
It was the direct result of a financial
(23:42):
strategy that wasn't designed for the
rapidly evolving business landscape that
we now inhabit. But your future can be
different. Your options can be different.
With the bank and yourself strategy,
business owners all over America are
building wealth for the future while
maintaining the capital flexibility to
pivot, adapt, innovate with a I and
(24:02):
whatever else comes in terms of
technology in the future for their
industry. And it eventually will.
change, like every business will probably
change over the next five to 10 years.
Are you ready for it?That's the question.
And what are you going to do to get ready?
Well, and maybe I'll jump in. So I'll
keep going. Okay. What are you going to
do to get ready?So if you're wondering
(24:23):
how the Banking Yourself strategy might
help prepare your business for the AI
revolution, that is not coming, it's
here. We've created something special for
you. This Wednesday, we're sharing the AI
Ready Business Financial
Assessment. that will help you evaluate
current financial structures and identify
(24:43):
potential vulnerabilities and
opportunities. It includes the five
critical questions every business owner
needs to answer about the financial
readiness for AI disruption, plus
a framework for calculating how much
accessible capital you need for your
industry's likely AI transformation.
(25:04):
Just head over to Wealth Wisdom Financial
Community for accessing this resource as
a premium member. You also get access to
a library of resources and our monthly
group coaching call. Bottom line today,
in the age of AI, having your capital
locked up where you can't access it could
be the difference between seizing
opportunities and watching them pass by.
(25:25):
We also want to give you the chance to
seize an opportunity and not let it pass
by. This August, and
shortly from now, maybe like less than
two months from when this episode drops,
we're going to be hosting a freedom
retreat and you're
invited. It's an intimate retreat.
Spaces are limited. And if you're
catching this and you're serious about
(25:46):
using your business to create all the
freedoms, financial freedom, relational
freedom, emotional freedom, mental
freedom, spiritual freedom, time,
freedom, all the things. then text the
word freedom to
513-447-6501.
We'd love to share more. And we do
have some amazing
tools that
(26:09):
complement the use of AI in a private,
restricted way that we're gonna be
bringing to this retreat to help heighten
the human experience. We can't wait to
share those with you. If you're there,
we're gonna be, you know,Helping people
level up on their freedom journey in
whatever is coming next, that next stage
and how you can make sure you're ready
for it. And we might be using AI. No, we
(26:31):
totally are using AI. I just said that.
So text the word freedom to
513-447-6501.
And again, the A I will be used in a
private, secure way to help enhance the
human experience, not detract from it.
And I'm really excited about how that
works. Again, freedom.
Is the word you text. The number is
513-447-6501.
(26:55):
Thanks for joining us. Hit that subscribe
button and live long and
profit. Now the stories in today's
episodes are kind of like Law and Order
fictional, but and they do not depict
any. Actual person. I mean there are
people and and themes that we have and
people that we know that are similar,
(27:16):
but they are not an actual person. The
topics presented in this podcast are for
general information only and not for the
purpose of providing legal, accounting,
AI, investment advice.
I don't know all the advice. Please
consult a professional that knows
artificial intelligence more
(27:36):
and your specific situation and your
specific situation.
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