10 Ways You Can Use Infinite Banking in Canada

Canadians have business or they have personal expenses that need to be paid. I got to pay for my light bill. I got to pay for maybe my.

Mortgage or a line of credit, or.

I have gas and groceries. And all of that money is just flowing anyway. It's already flowing away. So that's the thing, to your point, Dan, that people really, you know, some people, it snaps right away. Some people, they need to get, they view the policy system as like something they got to pay for. And they don't realize that the reality of it is every single dollar that you're presently earning is already flowing to someone else's bank. You're already paying the deposits, you're already making the premium payments. You just don't know it. The banking process is working against you when it can be working for you.

You heard about the process of becoming your own banker, the infinite banking concept in Canada, and you probably heard that you're meant to, you know, recapture the interest that you'd otherwise be sending to banks and finance companies. And that is very powerful and fantastic. However, are we thinking a bit too small? My colleague Dan and I are going to share 10 ways that you can the infinite banking concept in Canada. And this is 10 ways from a list of many, many more. So here we go. Watch to the end.

Yeah, let's start with that first one. Now, this one may or may not resonate with you, but for a lot of people it does, and that's retirement. So you get to a stage in life and thank God I'm a long ways away from that yet where I'm going to start, you know, backing off and just wanted to do things and have income coming in that I don't have to work for specifically. So does the infinite banking work for passive income?

Vern? Absolutely, Dan. This is, this is the beauty of the process of becoming your own banker. I'm, you know, I'm the age that I am today. I may or may not be a few years junior to you, Dan, but I get to start building this policy system today, and I'm building cash in this system. I can access cash from that system to, you know, achieve other objectives in my real life. But I'm not hurting future burn because my policy system is going to continue to grow and compound and just gain more and more strength and momentum. And when I've decided, if I ever decide to your point that I want to scale back and relax a little bit more, and maybe I'm not acquiring as many assets, I can't imagine why you wouldn't want to acquire assets until the day you die. But I'm just sharing that as an example. If I start to decide, you know, I just want to turn the tap on, I want some income coming in, I just want to go and have vacations and enjoy life or what have you, I can certainly use my policy system as my pure source or at least as a supplement if I want to, as income in a very tax efficient manner, can I?

As you're building that pool of money that's going to keep on growing uninterrupted through your life, even though you're leveraging it for things that you know you need or want in life, it's just, it's just like you get to use it like it's like eating your cake. And then if you use it properly the way we coach and teach, then you're going to have access to capital that you can use if you choose to at that time of life, to subsidize whatever other income you have, or as all of your income if you've structured it in that way. So yeah, retirement or passive income, that's an excellent way to use the infinite banking concept.

I can build this policy, use it for passive income. And my policy death benefit, you know, in the contract is going to continue, continue to rise and grow as well. So I can use that capital while I'm alive and benefit from it. And I'll be still building an ever increasing, you know, death benefit so that when I do pass, I'm still going to be able to leave a windfall of capital to my family, take care of any kind of terminal tax liabilities, et cetera and so on. So it's kind of a multitasking your dollars, right?

I don't know about you, Vern, but you know, as I've gone through this winter, we're in winter here in Canada right now as we record this thing. I've been going, man, it would be nice to be somewhere a little warmer for a little while. And you know, the reality of it is, Vern, is, you know, I could use the infinite banking concept to fund my vacation.

You know, they're going to see a trend as we go through this video. It's almost like the infinite banking concept can be used for anything that you're currently using money and banking for today. But you're exactly right, Dan. I mean, what do I do? You know, I use a credit card and, and then I go on the vacation and I enjoy it. And then day six, right before day seven, when I get on the plane I start feeling that anxiety of like, oh, now I got to go back. I got to work real hard. I got to make my minimum payments. I got to pay off that credit card. That doesn't feel very good. Well, option number two is I'm piling up money in somebody else's bank. Then I draw all of it out, and I permanently transfer that financial energy away from my family forever so I can go on vacation. And I'm none the wiser. It's fine. And I come back and I got to get right back to work and pile up that money again. And then life happens. And now I'm forced to use lines of credit or credit card and get my family in trouble. Whereas how. How might I. How might that be different, Dan, if I were going to use the infinite banking concept to fund my vacations?

Just recently, I did a video on how I'm funding a vacation in 2022 right here in Canada. I'm taking my family, my whole family on a vacation, and I did this great little video just to help people understand that. How I'm using.

Policy. Well, part of the infinite banking concept, one of the. One of the pieces in my bank, one of the branches of my bank, I'm using that to fund private lending.

Nice.

And so I'm doing private lending with my policy, and that income that I get from the private lending is going towards my vacation. There really isn't anything you can't use. This. Maybe that's why Nelson called it the infinite banking content.

You're cheating the system. Wait a minute. You started by talking about vacationing, but you're actually accessing values. You're lending that money out. You're creating cash flow. You're flowing that money right back to your system, and it's piling up so that you can later go and make. And go on a vacation with your family. That is amazing, Dan.

Well done. That's exactly what I'm doing. And it's just like, yeah, that is one of the ways you can use the infinite banking concept. Everybody needs to take a break and, and every once in a while, just recharge and get time with your family. So that's a great way to use it. Now, what's one other thing that you can use it for? And it's something that, you know, you and I have both done in life, Vern. And, you know, I bought a lot of vehicles before I knew nothing about the infinite banking concept. So vehicles are one thing that we talk one topic, we catch up on a lot because.

We'Re going to either we've either bought vehicles or we're going to buy more vehicles. That's a typical Canadian. I plan on buying more vehicles. I don't even want to mention how many I've bought already in my lifetime because it's way too many. And so what would be the advantage, Vern, if someone actually purchased a vehicle using the infinite banking concept over, hey, they could lease it, couldn't they? Hey, couldn't they pay cash for it, Vern? Or get that 0% financing? Like, why would this be better?

Canadians just love car payments. They're all about getting new vehicles. Man. It's really interesting now to your point. I know that you're using your policy system to fund vehicle financing or future vehicles. And I actually just Recently, August of 2021, I was able to, you know, I financed a vehicle back in 2019, January. I was paying, you know, painfully paying those vehicle payments and watching the money flow away. Daniel I achieved the objective of getting the vehicle, the reliable vehicle for my family. But the reality of it is I actually didn't own that vehicle until my last payment was going to be made. So I didn't own the vehicle, but I was financing it and sending money away. And that is the problem, is that you're working real hard and someone else is getting all of your money. While I was paying that vehicle, Dan, I was aggressively capitalizing my banking system and building, like you said, the branches of my banking system. We presently have 10 policies in our family system. And I was able to access a policy loan and pay off the vehicle financing five and a half years early. And now I'm the one recapturing all of the payments that I was going to send to someone else anyway, while my cash values continue to grow and compound and my family and I are completely in control of the financing function. And if I wanted to ratchet up my payments, I can. If I want to ratchet the payments down, I can do that too. And when it's all said and done, when I get to maybe that passive income time, I will have had all the vehicles and I'll get all of the money back as well. So that sounds like a pretty darn good deal to me.

That is great. And I know you've got a video out, Vern, that just walks people right through how you did that vehicle purchase and how you are now, you know, own the vehicle and you're still paying yourself back. So that's a great video for people to go and watch. And the other thing that if you as you're watching this if you start to wonder, you know, what is all this infinite banking concept in Canada all about? Well, we're going to encourage you. Just go to, you're going to see a link, it's called watchibc.com and that's like a 90 minute training webinar. Gives you a really good foundation on how this works. So we're going to encourage you to do that when you get time. And we're just going to continue to go on with our list because, hey, we've got a ways to go here, Vern. We can talk about every one of these for a long time. So let's jump into the next one. It's like real estate and you may be a real estate investor and I'm going to bet you you're probably into some sort of real estate, whether it's your own home or if you're actually in business where you have real estate properties, rental properties, and you put those out there for other people to utilize and you gain from the rent that they're paying. Well, you know, the infinite banking concept in real estate investing, what a great fit. What are some of your thoughts you have, Vern, about real estate investing?

Real estate investing in Canada is a major thing that people do to build their assets, build passive income, you know, create more assets. And they want to, a lot of times they want to build a legacy for their family. They want to pass all that on. And that goes back to what I mentioned earlier about the terminal tax liabilities and that death benefit. That's another reason why this death benefit is so important. Because when it pays out that tax, then is either going to come dollar for dollar from the wealth that I've created or it's going to come pennies on the dollar from the life insurance company and that death benefit so I can pass all those assets onto my family tax free. Again, that's another bonus for you. But to your point, hey, I'm the one who decides that I want to buy the property. I'm the one who has to jump through all the hoops to get approved. I got to come up with the down payment, I got to pay the bank first before they'll be willing to consider me. And I'm the one taking all the risk. And now I put the renter in the property and, and who gets paid first, Dan? The bank gets paid first and then I get whatever's left over from after all the expenses and paying the mortgage. So as I'm building my banking system, I can be using it either a as down payments, I can use it sort of as a line of credit to renovate my rental properties. I can accelerate my mortgage pay down so I can pay the mortgage off much quicker so that if I take a 25 year amortization and shrink that down to 10, well, that's 15 years of all that rental income, me getting paid first and that money flowing back to my banking system and giving my family more capital to use to grow our real estate portfolio instead of it getting locked in that property and sent to someone else's bank.

And you know, as you were speaking, you know, one thing that came to mind, I want to be the bank.

I want to be the banker.

Yeah, I want to be the banker in the bank. Like I want that money flowing towards me absolutely. And not towards someone else. And I just thought, well, real estate and you know, I love real estate and I love real estate investing because, hey, people need a roof over their head. That's a given. So it's one of those fundamental foundational ways to create passive income here in Canada. So if you're doing that, hey, we can talk to you about how you could use the infinite banking concept to support that and everything. When you use the infinite banking concept, everything you do is improved financially. If you use it as a foundation, radically improves your results over time. It's really close to RRSP time. Like you've already. We've been inundated with all the ads. I've heard them, you know, RRSPs, RSPs. And people are focused on getting that RSP so that they can reduce the tax, the amount of tax you're going to pay in a year. And you know, Whether you like RRSPs or not, you know, I personally have chosen not to invest in RRSPs anymore. And that's another subject for another day. But some of you really think it's something that you need to do. So when I work with somebody that's got, you know, I just don't. Dan, I got to get my RRSPs. I said, well, there's a great way to buy RRSPs. You want to guess what it is, Vern?

I always tell, you know, I share with clients. I say, look, I'm not, you know, not doing RRSPs as well. I personally have chosen also not to put money in RRSPs for my own reasons. But I don't have to become my own banker or put money into an rsp. I just prioritize my premium deposits. My capital is flowing to my policy system and now I can access money from my system. And just like we talked about the vehicles, retirement or passive income vacations, I can take that money from my policy via policy loan while it continues to grow uninterrupted. And I can make a deposit into my RSP if I want to and get the same tax benefits that I might enjoy today. And hopefully that investment grows and I have more capital that I can access down the road in passive income time. But I just get to choose do I want to use my own hard earned income and put that into the RRSP or do I want to deposit that into my own banking system and then borrow against that and use the life insurance company's money to make that RSP contribution. I pick the ladder. That's just me.

And I just talked to somebody this week who says, yeah, I'm going to go to the bank, commercial bank, and get a loan from our rrsp. I go, oh, you know, you actually have a, a better opportunity. You could actually take a loan against your policy and buy those same RRSPs. And we had a great conversation about how and why that would be better for that particular individual to do just that. So that's an opportunity. One of the ways here in Canada that you can use the infinite banking concept. So next on our list was, and this is another favorite one, I know we all love children, right? Who doesn't like. Well, I guess I can't say that. Who doesn't love children? Like I'm blessed to have them, I'm blessed to have grandchildren, all good stuff. And you know, I just love children. And when you think about one of the things that we're taught out there in our society is that, you know, you got to save up for your children's education. And we're all familiar with registered education savings plans and such. And could you use the infinite banking concept a to supplement that or to replace that? Well, I'm here to tell you I think you can.

This is all about how you go about financing things that you need in your lifetime or you want. And everything that you go about financing at the foundation of it is the function of banking and someone has to control that process. And that someone should be you. So I could choose to put money into my RSP like I mentioned earlier, or into my child's resp if I wanted to. But to Dan's point, is the kid going to go to school? Is that money going to grow? What if I want to use it or access it if my child's 5 years old? I mean, that's what, 13 more years potentially till they're using it? Is there a chance that maybe an expense or two might come up for that child in 13 years? But I've got all that money locked in that resp and I can't access it. And even if they do go to school and the thing dies when school ends and it's just gone. So what Dan and I are encouraging you to do is maybe look at the alternative, which is to start funding this banking system. The policy can be put on my son. I have policies on each of my kids. They have multiple policies. Now I can access money out of that policy to achieve other objectives while they're growing. I don't know, Christmas expenses, maybe they're going to a ski camp or football or hockey or something like that. But I can also access money from that policy system by a policy loan without interrupting the growth. And I could make a resp. Contribution as well, couldn't I? I could get my government grants. I can do all those things. So I get to really enhance, like Dan said, I'm just enhancing everything that I'm already doing financially today. And I'm putting my dollars to work really more than one time. I'm putting them to work in multiple places for the same dollar. Right.

Why do people do that? Well, they want to help their child get ahead in life, give them a chance to, you know, go to school, get educated. And that's a great thing. And I just love the fact that if you use the infinite banking concept to do that because you can get the same outcome using this process and yet it's there for their whole life, for their whole life. You can use that as long as you own it. And then you can turn it over to your child at some point and they get to use that same asset for their whole life. And it just. When you start to think long range, oh, what a difference it makes if you think short term different. But if you're thinking long range and long term value, well, when it comes to child's education and just children, there's no better way, in my opinion, that's just my opinion, to do it than to use the infinite banking concept.

This is something that, you know, lasts the child their entire life. If you're a grandparent, I mean, you can create something for this child that is going to benefit your unborn great grandchildren and maybe even great great grandchildren. So, you know, from beyond the grave, you're making a big impact in your family's life. But the point that I actually wanted to make was this Dan, who owns the contract?

Hey, you own her. I do, I own it.

Is there anything that actually says you have to. Just saying. Is there anything that actually says you have to turn that contract over to the child? Not at all. So I'm systematically transferring my wealth to the next generation in a very tax efficient manner While I maintain 100% of the control until I say so, or until. If that child is a God bless them. But if they're a delinquent, they're going out doing their own thing, or they're doing business with someone else's bank instead of the family bank, I can choose not to turn that policy over or not allow the child to purchase it or whatever I choose to do for our family banking system.

That sounds like control, Vern. And yeah, that's a huge piece of it. And that's why one of the things I love about this process, the control that I get, no matter how I choose to use the infinite banking concept. Let's talk about one other area, Vern. Stocks. You know, I bought stocks. I'm sure you've bought stocks at some point in your life. Maybe, maybe not. Maybe you're smarter than I was and didn't play in the stock market at all. But hey, and what about crypto stocks and crypto? Could you actually use the infinite banking concept to, you know, play in the stock market or, you know, do some cryptocurrency buying and play that stuff out? Well, I think if you've already heard from us, yeah, you could. It becomes a great platform to do other investments like that. You know, people think of stock, it's riskier. Well, you can actually reduce the risk, your exposure to loss. If you're utilizing the infinite banking concept as the way to fund the stocks or crypto. And God help you with crypto, because I have volatility. I watch it, it goes up and it goes down and just whatever you're doing when you get to those pieces, you know, if you're buying stock, I always tell people, do your homework. Really buy something that you know has value and hang onto it long enough to get that value out of it. But I'm not going to coach you to buy stocks. I'm going to just coach you. If you're buying stocks, use this infinite banking concept as a way to fund those purchases.

The infinite banking concept, becoming your own banker in Canada. I mean, everything that you do financially today requires the process of banking. The last time I checked, stocks and cryptos are being purchased with capital, with cash. And that cash has got to come from somewhere. So I know that we've mentioned so much good content. Of course, watchibc.com, we've talked about a couple of videos that you've created. Videos that I've created. I know there's probably a playlist here to my left. One of the great videos is. I can't remember the exact name of it, Dan, but where it's one of our colleagues, Starblow Gill, talks about freezing your rate of return by implementing the process of becoming your own banker. Because I can capitalize the policy. Policy values go up. I access that value, buy a stock or whatever it is, let's assume it does. Well, it's growing and my policy is growing at the exact same time. And isn't this, I'm not a stock expert, but isn't hedging, isn't that a stock word like hedging your investment or hedging your risk or something to that effect? And that's effectively what you talked about. This is a way that you can help mitigate some of your risk when you're taking, you know, investing in stocks and those sort of things.

Now we're finally got to number eight. Boy, it takes us a long time to get through this list of 10 because, you know, like Vern said earlier on, this list is really infinite. But we just have 10 that we're going to go through and we're at number eight. Just in case you're wondering. Not one. I don't know how you feel about this, but this time of the year, again, we start to think about taxes. And really what I wanted to relate this one too is, you know, for some people, especially those that are running businesses out there, they start to, you know, think about their year end and they got, they start to think about, okay, well, what's my tax hit going to be this year? What is that tax burden that I'm going to have? What would it look like if you could use the infinite banking concept for taxes? Well, I'm here to tell you that, you know, that is a great strategy and we work with clients that have that as their strategy. You know, they instead of, you know, they build up equity in a policy and some have done specifically for I'm going to do it for taxes. Then when their tax bill comes due, what do they do? They take a policy loan out. Hey, now they pay their taxes cra. No longer after them. They did what they need to do. You don't want to ever get in trouble with the good old revenue Canada because that's not a fun place to be. So they pay their taxes, and then they start to save up for next year as they earn income. Hey, that's what I do. Every month I get paid, I'm pulling out a portion for taxes. So where would I put that? Well, maybe I pay my policy loan back so that 12 months from now, I've got access to the amount I need for my taxes, plus more. That's the infinite banking concept and how you could utilize it. When it comes to taxes, we don't like talking about taxes, but hey, taxes are real, and we're pretty blessed to be able to, you know, drive down the highways, have access to hospitals, good medical care, and those kind of things. So there is a need for taxes. So when we pay them, why not use the infinite banking concept? Because if you do, your money is going to keep on growing and uninterrupted. Just a great way to make a difference. When you pay your taxes, taxes can.

Be considered a business expense for sure. And, you know, there's, you know, you got liability insurance you got to pay for. You got to insure maybe your vehicles or your equipment. I mean, you've got maybe leasing for a building. I mean, the list goes on and on for the expenses of payroll. The money's got to come from somewhere. And I always say to my clients, I go, look, we got to change our thinking. We're building a private banking system that you own and you control. You're now the banker. So we hear this word loan, and we go, oh, gosh, why would I take a loan? Well, do banks like to issue loans, or do they not want to issue loans? Banks want to issue loans because it creates a stream of payments. So loans to a bank is an asset. And when you become the banker, when you're lending money to you or your business or your family or what have you, well, the money, it attracts a stream of payments that otherwise would have went to someone else. That money's going to flow to your system. Now, here's the question, Dan. Simple example. I say to my clients, I go, vern, why would I use a policy loan for my policy system when I got the cash right here in my bank account? And I go, well, whose cash is it? They go, it's my cash. I go, well, who worked for it? They go, I did. I go, great. You access that money and you do whatever the objective is. Let's say pay for a business expense. Let's say you bleed the bank account dry. Dan, when I wake up tomorrow, what's going to be the balance of that.

Bank account, it's still going to be dry.

It's going to be zero, man. You got it? Now we have this wonderful thing happening, it's called aging. And my cash value has to rise such that it matches my total death benefit by the time I reach age one. So when I access a policy loan, I can pay for a business expense, lease or financing or whatever it is. And all of a sudden I wake up tomorrow, the Lord blessed me with another day of oxygen and my cash value just happens to ratchet up every single day. And it has this funny way of never going backwards. It's pretty magical stuff. So every single day I get access to more and more capital that I wouldn't have access to the day before just because I aged. Now, Dan, without getting into a bunch of fancy numbers, which one of those two pools of capital do you think is more efficient for you to use to pay your expenses?

Well, I hope, I hope I could figure that out, Vern, but I think I'd rather have something there than, you know, drain it, have nothing, next day, still nothing. Or if I took a policy loan and I took my value down to zero and the next day I had something there, I think that's a pretty much a no brainer. I'd rather have one that's building value every day. Absolutely irregardless of whether I have that loan outstanding or not, still building value for me. And that's a huge, you know, plus with this concept. And when people really get to understand that, I think that's, you know, for a lot of people, that's that aha moment, right? I could do that. And they just get to see it and it's all about seeing how this could make a difference and how it works. I always go back to, you know, one of the things that Nelson always said, Nelson Nash, who's the author of the book, you know, Becoming youg Own Banker, he always said that, you know, this can't be taught, it's got to be caught. And I think that things like that, people catch it and they go, hey, I never thought of it that way. That is, you know, that's just a great example of how people can see the difference it could make in their life. And I think you did a great job of sharing that with, you know, business expenses, all, you know, what are they always there. Like, I look at this office that I'm in, you know, it's other people's money, Vern, that I use to pay for the rent in this office. Because I've used a policy loan to cover that expense for my business. So any business expense that you have, if you have a policy or system of policies, and it's infinite banking concept, you can use that to support your business expenses. Now, here's a question I have for you, Vern. So if you can do that for business, what about your personal life?

Man, that's a darn good segue. I was thinking the exact same thing. You know, one quick thing that I'll mention that you had shared earlier, you'd said that you're accessing policy values to do private lending. Well, I'm starting to expand the family banking system and I access the policy loan and I actually lent money to our family construction company to buy out some vehicle financing. And now guess who's recapturing those payments coming right back to the family. So we get to recycle and use that money again. But to your point, I mean, the process of banking exists inside the business and it exists in your personal home. Canadians have business or they have personal expenses that need to be paid. I got to pay for my light bill. I got to pay for maybe my.

Mortgage or a line of credit, or.

I have gas and groceries. And all of that money is just flowing anyway. It's already flowing away. So that's the thing to your point, Dan, that people really, you know, some people, it snaps right away. Some people, they need to get. They view the policy system as like something they gotta pay for. And they don't realize that the reality of it is every single dollar that you're presently earning is already flowing to someone else's bank. You're already paying the deposits, you're already making the premium payments. You just don't know it. The banking process is working against you when it can be working for you. Dan, I think you mentioned this earlier. I do the very similar thing. I can earn my own income and I can use that money to pay for whatever I need to pay for. That's my daughter's fencing, if that's gas or groceries. And again, that money, that energy, the growth potential on that money is being permanently transferred from my family. I will never get it back. I can never grow it. It's gone forever. Whereas I can take that same money. And we have to do this incrementally over time. So go to watchibc.com so that you can learn more about how we actually build the system of policies. We can't flip a switch and become our own banker tomorrow, but I can start to control a portion of the banking function in my life immediately so I can carve out capital, build up that policy system and now I can start accessing either monthly or quarterly loans like you had mentioned earlier, Dan, that you do. I could take a quarterly loan if I'm just pulling a number out of a hat. If my living expenses were $7,000 per month and I had 21,000 plus as a policy loan available within my family system, there is nothing stopping me from accessing that loan, putting it in like a, to a repository account or some sort of. I could, you could chunk it onto your home equity line of credit if you wanted to, which is exactly what I do. I chunk those payments. I put that money on a home equity line of credit instead of sitting in a checking account. So now I'm doing some damage on the principal and bringing down my interest. But now I can use money from the line of credit to pay my business expenses, pay off our credit cards because we use those for living every month and then I leave a surplus there. And then when I earn income, when income lands in my bank account, I have no need for the use of that money. I get to take all of that financial energy and transfer it to companies that I co own so that they can put the money to work to grow more profit to share with me, Dan, and all the other participating policy holders. Isn't that good?

That is so good. And exactly what people can do just in their personal living expenses. And it works so well. And just think about it, when you're at the grocery store, you know the guy behind you or in front of you, he may be using his own money, but you could be using other people's money. If you use the infinite banking concept, it works. And like we talked about earlier, it's infinite. And we just mentioned 10 things today. We could have went on for a long time just talking about other ways that you could use the infinite banking concept here in Canada, but we just kept it to these 10 and you can just tell from the energy we brought to this, it's like we could go on and on. And what we're going to encourage you to do now is just take the time to look at the rest of our content that we got in this channel. It's great content and you can learn a lot from just taking in different videos. So that's what I'm going to encourage you to do. And Vern, anything you want to wrap up about the 10 ways we use the infinite banking concept in Canada?

Well Dan, I added a couple of bonuses in here. And here's one more I got a gentleman waiting for me right now. I'm going to go chat with him about how I'm going to use my policy system to finance a home gym. So the money's going to come from somewhere. So make sure you click the link in the post description below to go to watch IVC. That's watchivc.com to learn more about the infinite banking concept. Becoming your own banker in Canada. And as Dan said, make sure you check out the playlist here to our left and just continue to do your homework. Consume the content.