60. Mortgage Free Using The Infinite Banking Concept – David Klein – Client Series

You are listening to the Wealth Without Bay street podcast, a Canadian guide to building dependable wealth. Join your hosts, Richard Canfield and Jason Lowe as they unlock the secrets to creating financial peace of mind in an uncertain world. Discover the strategies and mindsets to a financial future that you can bank on.

We are just honored to be joined by the one, the only, Dave Klein, who many Wealth Without Bay street listeners have been inquiring about. Very excited to have you with us here on the show today and for listeners who aren't aware, maybe just joining us for the first time. So Dave has been, he has been implementing this process of becoming your own banker, the infinite banking concept, in his life for several years. We are super excited to share his story with all of you today. Dave, let me be the first to welcome you to Wealth Without Bay Street. Thanks for being on the program.

Thanks for the offer. Sorry it took so long to finally make it happen, but yeah, glad to be here.

You're a busy guy, you know, you're a police officer, which. On behalf of all of our listeners, on behalf of everybody here at wealth with LP Street Ascendant Financial, thank you. Thank you sincerely for your selfless sacrifice, your service to the community. We appreciate you very much. Thank you.

I love what I do.

So it's not work when you love it.

Exactly. No, it's, it's fun going in every day and of course gotta help who you can help with, right?

You bet.

Absolutely. And you know, it's. There's no downside to having police officers on your client list who are there, they're there to serve, they're there to help, and just all around great people. We have many clients who are members of police services across the country. And so it's, again, it's just a real honor to have you here. And of course we're joined by my co host, my colleague, my dear friend, Mr. Richard Canfield, hailing from Chilliwack, British Columbia, otherwise known as the wac. Welcome, Richard, to the show.

I'm excited and you know, Dave, I just want to get right into it because, you know, you know, I've heard Jason talk about you a number of times. As a first chance, you and I've had a chance to really connect. And you know, what I understand is that you've been, for how long you've been doing this, it seems like you got exposed to this kind of like over dinner or drinks with some friends and that's how this kind of entered your sphere of influence. Can you walk us through how this book and Nelson's message becoming a banker. How did this come about for you?

Well, the initial, initial introduction is a little bit hazy because it was over some drinks, but it was actually a good friend of mine, he had just met with Jason and was telling us. And there's probably about four or five of us in the room just about this process and how we all need to get on it. And me, along with everyone else in the room were very skeptical.

The one thing that really sticks out from that night is everyone thought by some weirdness that it was some kind of pyramid scheme. And that really, really sticks out. And I was like, I don't know, it sounds really interesting. So the next day I talked with him a little bit more about it and the idea of all just how it can be used in so many different ways and really, really stuck with me. And it didn't come across as a get rich quick scheme or anything like that, but I was very, very skeptical. Just being. It sounded too good to be true, if that makes. Well, of course it makes sense to you guys. So I started doing some research and some more research, and I talked to my friend and he's like, well, just take this book. Jason gave me. The. I got this book from Jason, so take a peek at it. I read through it really, really fast, which is something to be said for me because I'm a very slow reader, but powered through that book and read it twice, actually. And then I was like, this is interesting. So I did some more research online.

Over the course of a few months, and then eventually, like, all right, well, I just got to go kind of straight to the horse's mouth with it. Obviously, Nelson was down in the States at the time, so I couldn't go to him. So there's a business card on the inside of the book, and it was. It was Jason. So I gave him a call and my wife and I met with them and the rest is history.

So, yeah, it's been how many years now? So how many years has this process been changing your life?

We started in August 2014. We got our first two policies and.

Walk us through what you've been able to achieve. And equally as important. Well, let me start here. What do you see now in your life financially as this process has helped you and your family? What do you see now that you didn't see when you first began the process?

Freedom. Honestly, we've been able to do so much just properly implementing ibc.

It's taken a load off of our shoulders. I was never one to really worry A lot about money because I grew up, my. My dad was a employee of cra, so he was very much, pay your bills, don't go deep into credit. Save, save, save RSPs. When TFSAs rolled out, get into those. But all that, like, traditional way of thinking. So we were. I mean, we weren't well off by any stretch, but we weren't struggling financially. We always knew that we would take. The plan was always, we'll take 25 years to pay off a mortgage. We'll take our seven years to pay off a car. We'll do all those kinds of things. And then the idea that we could do it exponentially faster and just more.

The ability to just recoup all that money and use it over and over and over again, it's just.

And you've done this for vehicles, you've done this for property. Maybe give us an example.

So the first thing we did with our policy, probably about two years after we opened up the policy, we had enough money to pay the wife's vehicle loan off. So we paid that off, freeing flir keeping with don't steal from the peas or whatever was there.

We kept all that money and put it all back to the policy. Two years after that, I remember we came in to open up a third policy, and we were both looking at the same vehicle at the same time, our Explorers there. So we were able to purchase a second vehicle outright with a policy loan.

And we've already paid that back. And then in 2019, we were able to actually recoup all the money from our mortgage and we paid off our house.

Amazing.

Yeah. When I opened up the policy, our first two policies, that was the goal. The goal was always, we'll pay off the house and then we'll see. Because then I just. I'm still learning so many things that you can do with this. I didn't fully understand the benefits when I first started. I knew they would be infinite, but they were. Even now, the things that I'm thinking about doing with them are just. They blow my mind. So that was the goal, pay off the house. And even now, what we were paying the mortgage, we're obviously paying back our loan. We'll pay off the house. We'll have repaid our loan two years faster than we would have paid off the mortgage anyways. That's not accelerating things, which of course we have the ability to do. So there's a bump in the road or an opportunity that comes up, then we can slow that down and take advantage of that opportunity, which I really.

Like, so what was the feeling like when you and your wife were you sent in the last check to the traditional bank, the third party bank and you could just wipe your hands and be like, I'm done. Did you have a mortgage burning party?

What did you guys do? We had talked about it.

We were going to have a mortgage burning party. So when I say that we paid off the mortgage in 2019, it wasn't exactly 2019. So what we did was that was the end of our five year term so we had a little bit of money still left going. So we had a HELOC on our house. We paid off, put the outstanding amount in the HELOC and then it was actually 2020. Of course mid Covid when we took out another policy loan to pay off the heloc, we were truly and utterly out of debt. There wasn't a penny of debt in our name, which is an amazing feeling. And the plan in 2019 was when that happened to have a burning party. But obviously with COVID getting in the way, we can't burn anything right now. But when that's all done, we'll celebrate the proper way for sure.

Well, I don't know if you recall this Dave, but when you had shared the news and I literally jumped out of my chair, I was so happy and just so excited for you and for your family and you know, we can share the expression with people where, you know, Nelson told us many years ago, he said what a peaceful, stress free way of life it is when you get the bankers out of your life. What would you say to listeners about that?

It, I can't even, I can't even describe it. It's just such an amazing feeling knowing now that if anything were to happen, I mean obviously it's not, it's not great, but we're not going to lose the house, we're not going to take the cars where it's just opportunity, it's all that's left. There's no more worry. It's very, very freeing.

That's so good.

Yeah, so good. And it happened a lot faster than we ever thought it could. Like when we started the process, I knew it would happen or I just like the idea that we would recapture all the money, we were paying off an interest and everything like that. It never occurred to me that it would happen.

Eight, 10 years faster than it would have conventionally anyways. So cherry on top, I guess.

That's absolutely right. And if you think about now, all of these opportunities that show up, which again, something that Nelson used to say to us is that if you have ready available capital, opportunity will hunt you down. And right before the mics went hot and we started recording today's episode, you were sharing about being able to expand your rental real estate portfolio as a result of being in a position to take advantage of opportunity that tracked you down.

Yeah, very much so. And it was just that by fluke, we came across the ability to come to get four properties. We closed on them yesterday, actually, the other day. We're doing a walkthrough with our new tenants and.

Awesome.

Yeah, it's a really nice feeling. So, I mean, I haven't told you yet this, Jason, but all of that money that we're getting that's coming in will be going towards new policy. So we need to book the time so we can make that happen.

Well, there you have it, folks. That's how these things happen. And again, what we're talking about is, we're talking about the process of becoming your own banker, the infinite banking concept. And Dave, if you think about, you know, a lot of time has gone by since you first initiated this process and if you go back to, if you can and jog your memory to when you were first ready to get started, how did you decide what, where to begin? How did you determine, okay, this is where I'm going to start. This is how much money I'm going to put into my first policy? What was going through your mind at that time?

I think I was in somewhat of a unique situation. So.

12 and a half years ago now, I was in the unfortunate situation of losing someone very, very close to me that we had no life insurance. And in that time, life insurance would have been very, very helpful to us. So being also a police officer and when we first started the process, I was on the streets and working shift work. And, you know, there's some associated dangers that come with that, but there's associated dangers with everything. I always argue. But it was first and foremost as a way to. I took it more from the death benefit aspect of it with the perk of being able to recapture things. We were just starting a new family at the time too, so I wanted to make sure that my family was taken care of with the. I call that like the first priority. But the very, very close second bonus to that was the ability that we could recapture everything. And I thought to myself, well, all of my research that I haven't been able to find any kind of holes in this. And I researched it a lot, wasn't able to find Any kind of holes. And I thought to myself, well, worst case scenario.

I'll go in for the five to seven years or whatever that however long it kind of takes for the amount of money that I've put in to equal my surrender. And if I don't like it, if it's not for me, then I'll take it out and I'm no worse for wear. I thought it was just as safe, if not safer, than throwing my money into the.

GIC or into the stocks or anything like that. So that was. That was where I was coming from with it originally. And then after about a year and a half, when we took that first policy loan out, more research. I don't know how I could do more research, but even now I'm still doing research.

Well, you're a police officer. You have that investigative instinct. It's part of your DNA. And I remember every time we met and we got together and we would always get into really, really good, deep discussions about the process and, and you would always say, hey, you know, if. If I find any holes in this, I'm going to let you know. And I would say, please, yeah, please do. And our. Our conversations. And I'm sharing this for the benefit of our listeners because the one thing that you really embraced, Dave, was rethinking your thinking. And every single time that we connected, your thinking expanded. You were. You were proactively talking about, here's how I'm going to expand the use of my program. These are some other things that I'm thinking about doing. And it just brought a smile to my face every single time.

It was hard, particularly. I welcomed it for sure, but it was hard. Just everyone is just so used to going to a traditional bank. And then, especially with my dad being cra. I'm still trying to talk to him and convince him, and not convince him, but educate him, for lack of a better term. On, well, I understand what you're saying, but what about this? And I believe you can teach an old dog new tricks. I don't know if my dad's in that category at this point in his life, but I'll keep trying, that's for sure.

All right. I love that. And when you talked about acquiring these properties and, hey, that's a signal to get another policy. What's interesting is I remember asking Nelson several times, and every time I asked him this question, he always answered me basically the same way. I said, nelson, how did you know it was time to go and get a new policy? He would say, richard, as soon as my feeble brain could envision doing so. And so you've isolated to Jason's point, rethinking your thinking. This opportunity shows up. You're just closing on four new properties. There's cash flow generation that's happening there.

Boom.

Your brain instantly thinks about, what can I do with that capital?

Bam.

New policy. And that's our brain solving problems internally and creating, you know, connecting these pathways from the research that you've done, the things that are now shown up for you that didn't exist prior to meeting Jason, reading the book. And it's just like. It's like an explosion of a new world of financial advantage that's available to you. And so thank you for sharing that with us, because in our conversations with other folks much like yourself, David, the theme that we're hearing is that the more people read the book, the more people get involved. They take a loan, they do something, they pay it back. The speed at which they're able to get financial accomplishment goes up because they're interacting with the policy. They're interacting with their financial life in a way they'd never done before.

For sure, that makes. Yeah. And we've seen it. So it's funny you say that every time you read the book. So now what I've started to do was every time I read the book, when I start the book, at the very least, sometimes it'll be a week with two young kids, it's a little busy, but I write the date in the front cover and just. I'm very interested to see how many times I can.

That's such a great idea.

Yeah. I'm like, I want to keep track. I want to know how many times I've read this.

So that is such a great idea.

Super good idea. It's funny you mentioned that. I don't have it done that way, but there's certain points. I have dates where I've gone back, and I'm like, wait a second.

I'm re. I'm re.

Highlighting this in a new highlighter because the old one faded. And I'm going to put a date on it now about something else that I. That's popped into my brain. So I have dates in my book as well, just not the way you've got. So I thought, that's really cool. Thank you for sharing that.

Yeah.

They recognize there's something more to this book. Like, people are writing dates in the book. Why are you rereading this book? Like, if everyone's saying it, there's a reason that that's happened. Like, success leaves clues. You know, one of the things that.

We'Re definitely going to want to do, Dave, is invite you to be a guest at an annual Infinite Banking Think Tank conference. So once we get the all clear on Covid and we're able to travel and enjoy the community of practitioners that get together one time per year, the week after super bowl, and there are clients that are literally positioned, lined up, ready to go, who want to share their message and be able to capture that. Because this is really. It's really getting out there. And, you know, it all starts with obviously talking about it, sharing it, but also being able to talk about the specific ways that you've been able to implement this process because it triggers the imagination of people who are researching it. And so on that note, what would you say to people who are at the beginning of their journey, who are just.

Being exposed to the process? What would you share with those folks?

That's a good question. I would say just pick one goal. When we started this, we didn't begin with one policy and think, well, we're going to be become. This is going to create independent freedom. And, you know, we'll end up on a beach somewhere in a cabana, not worrying about anything. We just had the one goal, and that initially was to pay off a car. And then, so we just started. We started with something small, but at the time it didn't seem that small like a car.

It's not a small thing by any stretch, but we started there. And then as soon as we actually got our feet in the door, we got our feet wet in it. We understood that, okay, this has some real power. We can now grow to the size of a new car, and then we can grow to the size of a house. And then now we can grow to the size of four pieces of real estate. And I don't know where we'll be next, but I have a sneaking suspicion we'll find out pretty quick based off of the seven in seven years. Like seven years ago, if you would have told me, we would have been doing everything that we've done with it so far. No way. I wouldn't have believed you whatsoever. So I'm really curious to see where we'll be seven years from now. But it just makes my brain always keep thinking about what could be next. What could be next. And sometimes it's okay to not know. My wife and I talk about this all the time. It's great to plan for the future, but it's also, sometimes you can be Kind of stuck in those plans. So one thing I always know is that we'll need money and I'd much rather have too much of it if there's such a thing, then not enough and go from there.

Nelson said plan is if you're going to live forever, but live as if you're going to die today. So I think you just kind of summarize that in your own words. And one thing I want to for our listeners, I want to highlight a point that I heard here and what Dave is telling us is that the seven year timeframe, well, the time was going to pass anyway. The seven years was going to go by no matter what. And one thing that we can't replace is time. And so if you're listening to this and you're thinking about either this process or learning more about it, take that time to do it. Now get started in the learning journey. You know, Nelson would say that what's the best policy with the one you started? That's right. And if I could go back in time, could I do things differently? Sure I could. But the one that we started is always you have to start someplace and the ability for that time to work for you, your advantage. You think about yourself and your children and your grandchildren down the road, the multi generational links that we can create here. And I'm guessing, you know, Dave, you know, with the kids that you have, you're already starting to your brain reading Nelson's book is starting to think about what about when my kids have kids, what are we going to do differently?

Yeah, they'll definitely, they're not quite at the age where they talk about like the Klein bank or anything like that, but it'll definitely be an education piece for them as early as they can truly understand it.

Well, I'll tell you, you're one of the sharpest examples of following Nelson Nash's five golden rules. Now, for the benefit of people who are tuning in maybe for the first time or just at the beginning of their journey, Nelson Nash had five golden rules. The first golden rule is to think long range, to think three generations past your own. And so by having policies in place not only for yourself to even for your spouse, but also having policies in place for your children, that's a sharp example of following that first golden rule. The second is don't be afraid to capitalize your system. Your money must reside somewhere. And so as you take control of more of this banking function in your life as it relates to your needs and more money's coming back or More money's being created through your real estate investment activities. You recognize your money must reside somewhere. And so if your system is already full, then you've got to expand your system. And the third golden rule is don't steal the peas. And you're obviously practicing that to a very high degree because when you initiate a policy loan, long before you even do that, you already have a plan in place in terms of, okay, here's how I'm going to go about repaying it and getting those P's back on the shelf. The fourth golden rule is don't do business with banks. And so by eliminating more recently prior to this real estate investment portfolio opportunity, by getting rid of the bankers. What a peaceful, stress free way of life that is. And then last but not least is to rethink your thinking and by you documenting every single time you go back and read Nelson's book. I'm not a betting man, but I would wager that you see something each time you go back into the book. You see something that you didn't see the previous time. Would you agree?

For sure. And I think it comes down to where your, where your mind is at when you're reading it. Where you are, your stage of life, what your priorities are at that point. You're going to pull out different things that really resonate and reach out to you at that point. So 100%. Yeah. It's funny, you're talking about don't do business with the banks as much as they were for this real estate stuff. Unnecessary evil. They were also just a giant pain in the butt to say like.

The amount of time I can. It was five different times where I said, do you need anything else from me? We're closing tomorrow. We're closing in two days. Nope, that's everything. An hour later, phone call. Oh, I need this. You know, three hours later. Oh, can you do that? Well, luckily I'm on a day off and I can because otherwise, like does something fall through? Do we not get these properties, all these things? It was.

But I'll be a necessary evil for the amount of money that we need. But the sooner I can get them out of there, the better.

Well, who knows where the next seven years is going to take you and your family as it relates to that specific objective. Maybe we'll have those bankers out of your life by that point as well.

Would be nice. Yeah. And it's as far as our policies and things go, like you were talking about, multi generational. So as soon as the boys were born, we, we had policies for each of them. And at the time when they were both born, the government was offering a certain amount a month in child. It wasn't universal child care benefit at the time, but something along those lines. So we said, we're automatically getting this amount of money in every month. Let's open up a policy for that amount. It's money that we weren't expecting that's coming in. So we put that to use. It's also. It's not a giant amount, but it's also an amount small enough when they turn 18 or whenever we decide that they're going to take over the policy. It's a very manageable amount every year to kind of help it get going. And the amount that I see that they can utilize when they're 18 or 20, if they want to use it for school, if they decide not to go to school, but want to start a business or buy a house or get a vehicle. The idea, and we saw it in my own family, with my sister actually with my parents, were big into resps. We all had resps. Not a giant amount, but enough. And my sister, up to 24 and a half, wasn't going to school. And the government was like, what are you guys doing with this resp? We're going to keep everything that we put in and the interest and you can have what you put back. So. And they were using that for 23 years. Why not let me use it for 23 years and do what I know, what is good for my family at that time. So that's what we've been doing 23 years.

Some. You know, obviously when your kids are at home with you, the most expensive years, because as parents, we plug everything back into our kids for the hockey and the soccers and the skiing and the guitar lessons and the dance lessons and all these things. And so there's the lost opportunity, like, because other. Other money and the cash flow had to be redirected to do all that stuff while they were also putting money into this thing. And yeah, it's growing over here, but it's in a prison. And that prison is locked. It doesn't allow you the accessibility to go do this thing that you need to be doing to develop the memories with your kids. So here's where you're making that change, that adjustment, as many of the parents implementing this process are where the things that you're already chunking money into for your kids that's going to help grow and develop them and the memories and the things that you're going to cherish that they're going to cherish as they age. You have a reservoir that you're building in a warehouse that allows you to help facilitate those things even more. So it's important to understand that, folks, if you're listening in the things that you could do for children and for grandchildren, it's really, in my opinion, it's unmatched. It's really, truly incredible. And then you have. Not only that, you have the advantage of time. Again, we can't get back to time. And so when you now look at the lifespan of 100 years on a child and then the catalyst of that cascading to another generation, the impact that you can create over three generations is unmatched. It's really something truly awesome to behold.

Well, if you think about it too rich, that this, in our view, this is really, truly one of the greatest gifts that you can give to a child. Because what David and his family have done is they've done something for their children that they couldn't do for themselves at that time. And this is a gift that is never going to require batteries. It's never going to end up in a toy graveyard somewhere. It's never going to be too small. This is something that's going to follow your children to every special occasion in their lives, to vehicles, property, all those things. But you're going to be able to share firsthand the stories of how you were able to implement this process and all the special things that you were able to do. And who knows, by the time your children are your age, they may never need to see a commercial bank for the rest of their lives, just by virtue of what you've done for them when they couldn't do it for themselves. Every parent that we talk to who's implemented this process for their children, including yourself, David, we just want to tip our hat to you and say, well done.

Yeah, I think it's the least we can do is to everyone. I think everyone's goal as a parent is try to leave their kids with more than what they had or at the very least leave them in a better situation. So if we can do that for our kids, great. I do think there is something to be said about.

Growing up a certain way and not being overly spoiled by any stretch. But that's definitely not gonna happen with us.

So. Good.

And so think about this. We have a journey that began several years ago, seven plus years ago. And so, David, you were on a trajectory. You were going about things the traditional way, earning money. Money shows up In a bank waiting for you to take care of your bills and your personal financial obligations. All that money's being constantly transferred away. Can't earn interest on it or use it ever again. Putting money away in traditional instruments like registered retirement savings plans, tax free savings accounts, etc. All involving the permanent, you know, not having control of that money, handing control over to someone else who thinks they can do better with it than you can. You stumble upon this process while enjoying some beverages with, with a friend who's sharing this among five, six other people. Skepticism checks in to say, hey, this sounds like it's got to be too good to be true. Your investigative nature takes over and you begin the process of investigating and learning. And you decided to take action. When you did that, your thinking began to change. And then the financial outcomes followed. And it impacted you with vehicles, it impacted you with property. You've got the bankers out of your life for all those personal things. A new opportunity tracked you down. You've got four rental properties that are going to be producing money. You had to invite the bankers back in your life. But it's only temporary. You know that now. And so what an incredible journey to share with other people. And we talk about you on our webinars, we talk about you in our live events. And people are like, who is this David guy? Like, are we ever going to be able to hear from him? And so to be able to put.

The real David Klein in front of our audience has just been real special. We appreciate you.

Thank you for having me. Really appreciate it.

Rich, any closing remarks that you'd like to share with our wealth without Bay street listeners?

I would just encourage folks to leave a comment if you learned something from Dave here about how he implemented the process and you appreciated his story and stuff, because it's really helpful for sharing that with other people. When we share what we learn, we learn it deep and we help others to grow. And much like what David's done with us today by sharing his story, it's going to help so many other people learn not about the process, but about what's possible. We live in the world of possibility. That's what infinite banking does for us. It opens up possibility in your financial life that wasn't there before. And you've basically just literally shown us how that happened exactly in your own life. Now, Dave, we know that even though Marvel movers are every today and there's a few more coming out, not all heroes wear capes. And you might not think of yourself as a hero, but every time you put that badge on and you, you go out there and you help the community the way that you do in your profession. And when you take the impact of infinite banking as you related it to our clients, you're making a huge impact to people. You're making their life better in some way, giving them things to think about. You're protecting the community. So when you think about all that.

Who would you like to be a hero to?

I knew the question was coming and I was hoping the answer would just pop into my head when you asked it to me. Now because I, I mean, obviously I want to be a hero to my family and I don't know if hero is the right word for anyone else out there, but I know that my good friend who introduced this to me, Darrel, I will owe him for the rest of my life. Him passing on this information to me has changed my life, without a doubt. And I'd like to think it will change my families. And then who else knows how that will. The trickle down effect will happen. As far as a hero goes, I'd like to be a hero to my family for sure.

Yeah.

I don't know, it's a weird thing to think about when you think about the hero thing because I think everything that most people do is basically a selfless, just trying to help others. And if that's a hero, then so be it.

Well, there you have it, folks. And David, thank you again sincerely for joining us. Equally as important, thank you for your service. We appreciate all that you do as a member of the police service and one of the most difficult professions that really anybody can enter into. And so we appreciate your sacrifice and respect that you've been generous with your time and joining us today. And for everyone who's listening, if you just look over here, there's going to be an additional recommended videos that we would love for you to continue your journey of learning. And you've heard again another part of our client series, the one, the only, David Klein joining us live and in stereo. So, David, thank you so much again. Give my very best to your family and look forward to connecting with you to get that next policy going.

You bet you. Yeah, we're gonna have to get it going sooner or later. It's the only way to kind of get it, get it working for us. So.

All right, we appreciate you. Thanks for being with us.

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