in this video we're going to look at the Rockefellers life insurance and trust and not only what they have all in common but how you can learn from the Rockefeller family and very other wealthy individuals that use trust and life insurance some people call this the waterfall method our friend Garrett Gunderson wrote what would the Rockefellers do and change that title to what would billionaires do in fact there's a lot of powerful people that understand the benefits of life insurance but also understand the benefits of trust and make sure that every generation is wealthier and wealthier and so with that I want to turn it over to the one and only Dom roofran who's going to draw this out actually has the drawing out already and I'm excited to dive into this because we did a video a couple years ago on the Rockefeller method slash waterfall method and uh some of our old videos can be cringy at times you're like wow like we are in a closet talking and it's cool like it brings back good memories but I think we can actually share better information and make it cleaner and since this is something that people want to learn more about and rightfully so I'm excited to dive into this man amazing just so you know the strategy behind this and the objective behind this is to keep money in the family for generations and generations to come we always talk about two families we talk about the Vanderbilts and we talk about the Rockefellers The Rockefellers are a family that have kept generational wealth since the 1800s in their family to this day billions and billions and billions of dollars of assets net worth still in their name because they have used this strategy then you have the Vanderbilts on the other side that did not use this strategy who were wealthier than the Rockefellers at one point in time and they now do not have anything to their name their legacy because they did not use a strategy except maybe the University of Vanderbilt the University of Vanderbilt is definitely using the strategy so before we dive into your beautiful drawing I want to just give the concept so that you have a pre-frame when you're looking at at this drawings the concept is each generation like the trust is owning the life insurance and essentially every time someone is Born Into the family they're getting life insurance on their name but it's owned by the trust and so the trust is continuing to fund life insurance and you're going to continue to compound and control your money and so you can use it like the banking strategy but each kid regardless if they're a trained wreck in Life or not that money after they they die that death benefit goes back to the trust and so each generation the trust gets larger and larger and larger this is how some people can use this from a standpoint of um you know having life insurance on multiple Generations you're almost guaranteeing if you do it this way no matter what happens to one of your kids um based on the setup each generation will become wealthy and wealthier and that's why so many people are interested in this because they get the power of infinite Banking and the power of life insurance but the idea of the water waterfall method I.E growing and growing your wealth but Generation generation guaranteed is pretty attractive I love that that was a great overview all right let's jump in all right Caleb did an amazing job of talking about the concept and now we're going to look into how this can practically go into strategy so first and foremost this is not legal advice this is just sharing with you how the strategy Works hey there's three important people when it comes to this concept okay there's going to be the grantor there's going to be the trustee and the beneficiary okay um the grantor is essentially the person that is setting up the trust okay that is the person that is going to pay the premiums to the trust to then pay the premiums for the life insurance policy okay so it's just it sounds kind of complicated but just essentially think of you're the one who sets this up which will likely be you who is watching this video you will then pay dollars to the actual trust which the trustee was then supposed to come in and execute on that which will then pay the premiums to the life insurance company so that's when the dust will essentially be funded so you can see here we have this grantor being pointed to the life insurance trust you can see dollars going into the trust life insurance is inside the trust after that when the grantor dies right because the grantor is the insured the insured dies a death benefit is then paid out when that death benefit is essentially paid out it's going to pay out to the beneficiary which is the trust the trust is essentially dollars are going too funnel to that trust and once the dollar is funneled to that trust those dollars have to be distributed somewhere so where are those dollars going to be distributed to well it's exactly what the grantor the original person who set it up wanted to happen even if they are dead and so to our right over here there's a legal document and it's it's there's a box in it that talks about that says this is how the trust operates so the grantor set up this legal document is saying I want this to operate exactly how I want even if I'm alive or dead dead or alive it doesn't really matter I want the trust to operate in this form or fashion how does that actually happen right who's in charge of that well that's where the trustee comes into play the trustee is the individual who essentially controls the trust who executes on the grant tour's wishes so if the grant towards wishes was to essentially make sure that when the death benefit gets paid out to the trust as the beneficiary that more death benefit more insurance policies are bought on every single person in the family well then that's exactly how it'll be executed so just to summarize grantor pays for policy premiums life insurance when that grantor dies gets paid out to the beneficiary of the trust that trust will then buy more life insurance on more people in the family and then when those people die those death benefits will then go back to the trust as well because the beneficiary of those life insurance policies is also a trust and along the way the cash value was used for assets for income for ways to improve Society way to build bigger better buildings churches is schools give back to charity and so this is how wealth stays within the family because it is all controlled and beneficiary to buy the trust and it is also creditor protected as well due to the fact that it's going to be an irrevocable trust where this cannot be reversed once it is set up by the grantor either I love it I it's one of those things that it can sounds very technical but it's really there's three three people involved there's the person that gets it set up it's the trustee that controls the trust because it could trust could be 100 plus years in the making so they're the ones that are actually looking at the documents and controlling the trust and then there's the the beneficiary or the person that get is getting life insurance the insured and those insured also have to have some type of relationship with the trust and as uh our friend Jeremy would say it's a self-looking ice cream cone and it's just getting it's just compounding and compounding and compounding do you have anything else to say on this because I think I would like to talk about how families regular families that maybe don't want to set up an irrevocable trust could use we call the waterfowl method that's true so when we think of like how how do you practically use this you you may be watching this and you're like okay I get it I want to set this up we would love to serve you we would love to help you and there's ways that you can contact us and learn more about the strategy but you might be watching this and go okay I like the concept of each generation becoming wealthier and wealthier but what we didn't show you in this is there's expenses to maintaining trust and then there's also when you set up irrevocable trust there's some negatives involved and some of the negatives is you're losing some of the flexibility in it and I think this makes sense if you're super wealthy but if you're a family that maybe has a couple million dollars to your name and and there's even some people that are are like are you serious like I don't even have a couple million dollars but I still want to buy into this every generation getting wealthier and wealthier so here's a really practical way that you can do this if your grandparents watching this and you have kids that are married and maybe you have grandchildren and maybe your grandchildren have have kids this is like like this will be a perfect example you are going to most likely die before your kids and your grandchildren and like let's just say you have life insurance and whether you utilize your life insurance throughout your life or not you have a permanent death benefit and that permanent death benefit is is at the top so think of like the top of the waterfall and then maybe you have two two kids that are married okay they both have life insurance with their families maybe they have children and each one of them you buy a life insurance policy when they're little and and it's compounding machines and we'll just keep it three generations for now when when you pass away your death benefit is going to pass down to your kids whether it's in a trust or whether it's them directly let's say that they're utilizing their life insurance policy and they have outstanding loans and they're maybe paying for college or buying assets and maybe they they decide they don't want to pay back the loan during that time but they're getting your death benefit they could number one buy more life insurance save or invest that money or or we what we call backfill their life insurance policies continuing to create a greater generation and that ripple effect or that waterfall method if every if every person did that you might have a son or daughter or you might have a grandchild who is a disaster but if they have life insurance they can only be a disaster for so long and at the end of the day they um they will die and that death benefit will pass on regardless of what they've what they've done with their life now and I don't say that in disrespect obviously everyone is valuable in the eyes of God I'm just more saying this from a standpoint of this is how people can ensure that this is being done now the disadvantage of that of what I just walked you through is it just takes one person to decide oh I don't want to do this the trust mandates you to be able to do this and it's very unlikely long term without something like a trust or like a guiding documents that people will maintain this because early on in life insurance it's not that exciting and you would rather go put your money in other places but when you start seeing the Legacy and Foundation when we talk about it being a foundational asset it really amplifies that over 150 200 years and I'm just saying that from looking into history because we're we're babies when it comes to understanding the true benefit of generational wealth yeah Caleb said it great so in theory if you are somebody who is at the beginning stage of Building Wealth still right the Rockefeller is setting this up they already had lots to protect the generations and generations of high-level wealth if you're somebody who's still building you're still going to want a lot of that control you're going to want to be able to use your dollars to go and invest in other assets to produce more cash flow that you then can set up something of this complexity right and so what he said is a great way to start off is hey let's do the waterfall method without the trust but I think it is important at some point that the people that are waterfall down are educated enough to understand this concept but also to understand money because it's better to teach someone how to fish than give them a fish right because then they can be so well sustained indefinitely and then they can pass that knowledge down to generation so I actually like a saying that I heard once which is you don't necessarily pass down wealth to the Next Generation you pass down education to the Next Generation because you can pass down a bunch of wealth but if that person can squander and lose it all in the blink of an eye within literally a year which is what the Vanderbilts did and so nonetheless the strategy is an amazing strategy definitely makes sense for specific individuals and looking at it from an irrevocable standpoint when it is irrevocable when you're younger I think that's a very big disadvantage as well because life can happen things can happen a bunch of things can happen in your life when you're younger to your older obviously so a revocable trust in that scenario could make a lot of sense but then there's some disadvantages along those as well um with in potential like lack of control or you know credit protection can get into it still because it is revocable and can change so just in summary we talked about the Rockefeller method how they use irrevocable trust we also talked about the waterfowl method and I think we can all agree that this is a really good example of how wealth is more than just the money that you pass on but the values and as we like to say a better wealth intentional living is wealth and so one of the best things you can do regardless of how much money you have and if you if the strategy even makes sense for you is is the values is your grandchildren going to actually know what you stood for and who doesn't have kids um I I want to start thinking about my money in that way and how much more powerful that will be with the ripple effect and I know that being a new father that probably just amplifies the the idea of of life insurance and the Rockefeller method even more yeah 100 and the last thing that I'll say is if this is something that you do want to get set up it's super important that you work with an attorney and it stays specific because there's different state laws per essentially trust and things like that so I would encourage that and then obviously to set up the life insurance that's super important to have that funded appropriately based off your goals and so to work with a professional in that category is also important as well hey we appreciate you watching these videos thank you for subscribing sharing and commenting it really helps other people like be aware of these strategies if you want to learn more about the and asset and life insurance check out the and SF all below [Music] foreign [Music]