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  • Stephen Gardner

Chiropractor - Case Study

It's a chiropractors job to get your spine adjusted correctly. When our spine is in proper alignment we feel better, sleep better, heal faster and enjoy life more. The same is true once you get your finances in line.


Believe it or not, there isn't much taught on personal finance during chiropractor schooling. It's all bones and muscles and joints. That's why I love sharing these incredible life insurance contracts with chiropractors. These doctors do amazing things for patient health and I want their money to do amazing things for them.


In this case study, we are going to be reviewing how a chiropractor in Washington got her financial future back in alignment after losing to the stock market and other programs. This doctor is especially interested in the control and predictability these contracts provide since she trusts herself with money more than anyone else.


Until meeting me, she had only been shown traditional insurance contracts. You know the ones built for death benefit and not for living benefits. Once she grasped the difference, the questions on what she could finance kept coming to her mind. The excitement was palpable over the phone. To help you understand a traditional plan and the ones I build, I will share examples of both. The first image will be a traditional plan.


The first thing I want you to notice is how there are no dividends until the end of the 4th year. Also, the total cash value grows at such a slow pace. Lastly, you will see that she has about $97,000 less at age 65 than she would have with the plans I build. Who you work with matters. They should be experienced, knowledgeable and own the program themselves. Otherwise you risk having the blind leading the blind.


Now contrast that with the plan I built for her. You have dividend payments in year 1 and total cash of $8,685. At age 65, the plan is showing $520,012. Don't make a $100,000 mistake working with the wrong person.


As this doctor reviewed the numbers with me, she was excited to have an idea of how much money she would have at age 65. With her other investments, she could only guess where the numbers would end up because her money was subject to loss and taxation.


Now for my favorite part and now her favorite part, too. This woman wanted to start buying cars the smart way. For nearly 20 years she had been buying cars the way the bank taught her. Now she was ready to buy cars the way I taught her. Remember, a properly built life insurance contract is the only financial product that allows you to earn interest in two places at the same time.


When you borrow money from the insurance company, you aren't borrowing your money. You are borrowing theirs so your money continues to earn interest since it is sitting as secured collateral and not taken out of the earning environment. There is real damage in interrupting compounding interest.


With a traditional car loan, the client would be losing money to interest and depreciation on the car. Let's run some real numbers so this becomes crystal clear.


At the end of year 5 of contributing to her insurance plan, this doctor is predicted to have about $59,000. In her case, she just wants a good, reliable car so she goes to the bank to get a $35,000 loan for 5 years paying 5% interest. The bank tells her she will have a payment of $660 a month. If we multiply $660 by the 60 month repayment schedule, she will pay the bank $39,600. This means the full $35,000 is repaid and she paid $4,600 for the interest. On top of that, she believes the car will only be worth $17,000 5 years from now when it has over 100,000 miles on it. Unfortunately that means she lost $22,600 to interest and depreciation. But she has $17,000 to go towards her next car purchase.


Now let's use the exact same time frame, loan amount, and interest, but use her own plan and not a bank. When she borrows the $35,000, her $35,000 of $59,000 will become collateral and she will borrow the actual money from the insurance companies general fund. The difference is, she is paying herself and not the bank so she has possession of the money. This is now money she can use over and over again whereas when you hand money over to the bank for a payment, that money is gone forever.


Since the payment is the same and so is the time frame, we multiply $660 by 60 months for $39,600 back in her possession. Plus, she has a $17,000 car she can sell for a total of $56,600 back in her control. Wouldn't you like to recover the money you spend on cars and have it redirected back into your pocket and not the banks pocket?


Seriously ask yourself, at the end of a 5 year car loan, would I want to have $17,000 in my possession or $56,600? I've been told its a 'no brainer', but until something is pointed out, sometimes we miss it.



Keep in mind that during this 60 month period, her $35,000 continued to grow and compound at 5% uninterrupted. This means the $35,000 has grown internally to $44,669. That's a $9,669 interest increase while paying only $4,600 in interest for the car. That's a marginal difference of $5,069. Compound interest will always crush paid back simple interest.


This is the smart way to buy cars. In the doctors family, she and her husband get new cars every 5 years to avoid wasting money on cars outside of warranty and repairs expenses. So just a few years after she pulls her first car loan and starts paying it back to herself, there is enough money for her husband to take a $35,000 car loan and get his new car. Then he will pay it back to her policy, too. You've seen how one car turns out, now imagine two every 5 years!


Can you mathematically see how this method of controlling your money and purchasing cars could seriously add money to your bottom line and retirement account over time. If you have lost money on every car you have bought up to this point, it's because you are buying the way the banks taught you to buy. There is a better way and now you know.


This woman could also use her plan for real estate, her own building, company equipment, paying off student loans, etc. Once you have the money, you can use it as you please. Plus, if anything happens to this doctor along the way, a large lump sum of tax-free money is paid to her husband or children. Just make sure to pay yourself back during the accumulation phase so you will have that money in your account to use again and when you are ready to use it in retirement.


With this doctors financial plan properly adjusted, she can focus on patient care, building her business and spending time with her family. She plans to be her own best customer on purchases she would have financed anyway.


Let me help you get started on a properly built contract and mentor you on how to recover the money you spend on major purchases in your personal and business life. The control and predictability these plans offer gives incredible peace of mind.

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Stephen Gardner's financial education and investment site.

Stephen teaches about money, finance, getting out of debt and building tax free wealth.