Paying cash can feel like the most responsible financial move you can make, but we’re challenging a belief that trips up a lot of smart savers: cash is not free. When you drain your savings to buy a car, pay tuition, or fund a big purchase, you don’t just avoid interest payments. You also give up future growth and reset your compounding back to zero. That hidden tradeoff is opportunity cost, and it’s one of the most overlooked forces in personal finance.

We walk through the three ways people “finance” everything they buy: borrowing from a lender, paying cash (self-financing), and a third option many listeners have heard us mention before, a properly structured Life Insurance Retirement Plan (LERP), also known as Bank On Yourself or infinite banking concepts. We break down the key mechanics that make this strategy different, including borrowing against cash value rather than from it, how mutual life insurance companies work, and why non-direct recognition can allow your cash value to keep growing even while you use a policy loan for purchases.

We also get practical about the loan side: simple interest versus amortizing loans, what flexibility can mean for business owners with uneven cash flow, and why accountability matters so you don’t sabotage your future retirement planning. Then we share real examples, from funding house flips, to paying for college, to building a high-dollar “cabin” with policy loan draws and repaying it on your own timeline.

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Disclosure: Information contained in this podcast is for entertainment and informational purposes only, and should not be considered as financial advice. Financial Planning and Advisory Services are offered through Prosperity Capital Advisors (“PCA”), an SEC registered investment adviser. Registration as an investment adviser does not imply a certain level of skill or training. Keystone Financial Group and PCA are separate, non- affiliated entities. PCA does not provide tax or legal advice.