Becoming Your Own Banker | Campus to Cash Flow

When you spend your income, where does your money go? It transfers from your account in someone else's bank to the account of the person or business that you transacted with, which is also in someone else's bank. This is the banking problem. And the fact is, you work hard to make an income, but someone else is getting all your money. So how do you solve this problem? How we could leverage the infinite banking, being a recent graduate, to secure your financial future? We're going to get into a few topics. So one is the transition, that transition from graduating to real world. We're going to talk a little bit about that. We're going to get into the problem with regards to how money flows today in our world. Okay? Then we are going to cover the solution to the problem and then we're going to talk about a case studies. We're going to see a real life example of how we can use the concept of investment banking. Becoming your own banker in our own day to day lives. Even for someone that's just graduating university and college, what is your knowledge level on money today in terms of budgeting, saving, investing? Now, I'm going to introduce you to this gentleman. His name is Nelson Nash. R. Nelson Nash. He has been a mentor to many of us here at Ascendant Financial. Many of my teammates have actually gotten to personally meet with him. I haven't, but I have definitely learned a lot from him. Everything begins with the way that you think. And I want you to imprint it in your mind. Because as we go through, what I'm going to try to get you to do is I'm going to try to get you to rethink your thinking. All right, let's talk about life as a student. What's the life of a student like? You go to class, you do your homework, you do assignments, and then of course you got to do your dreaded exams. Right? That's what our parents think it's like. Right? But, but let's be real, let's be real. What is college university really like? All right, for some of you, you may have experienced this or you got some beer pong. You know, we love the two minute noodles, you know, college noodles the night before the exam. So good, so good for you. Then we got Netflix. A student's life can be stressful. We could be juggling courses, 5, 6 different courses depending on the program you're in. You may have morning classes, late evening classes. I remember having class from 7 to 10 at night. But on a real note, there aren't any real responsibilities. When you are a student, yeah, you got to go to school, but you don't have the real responsibilities that you do when you graduate. As soon as you graduate, you are thrown in the real world, okay? You have to learn to navigate through life. You're pretty much on your own. You got to figure stuff out. There's no one really to help you. You know, maybe you have a mentor in your life and if you do, you know, be grateful for that. You know, it's always good to have someone to help you get you through life. For the most part, we're trying to figure it out on our own. No one really teaches us how this adulting thing works. We gotta figure it out. And in today's world, we actually have it easier. We have the Internet to look up things on how to go about doing things in our day to day lives when we graduate, when we get into the real world, when we have a job, when we have responsibilities. But if you don't, what you tend to end up doing is you tend to end up following what everyone else is doing. When you graduate, you, as I said, you have some real world responsibilities. You may have a job, you may have started a business, you got some bills, expenses to pay. You have some savings and investments that you start making from the income that you receive. Now for many of you, your first paycheck out of university or college is a big deal because that's one of the first times that you're making real money. That's your first real taste of what money is like. But again, we aren't taught what to do with the money you make, right? And so once again, you tend to follow what everyone else is doing. You may use your income to pay expenses and bills that you know. So as soon as your income comes in, you pay the bills, you pay the expenses that you may have. And then if you have anything left over that gets put into savings or investments. Now this is what most people do. Your income comes in and then immediately goes towards expenses, bills, and then some savings and investments. Now let's examine what is happening in that process. What has happened to the money you spend on expenses? What happens to it? I'm talking to the actual dollar amount. The money is gone as soon as you spend it. As soon as you make a transaction with your money, it leaves you, it leaves your control. When you exchange your money for something or anything, you have to transfer that money over in exchange for the thing that you purchased. So I want you to take a second and think about all the or services that you spent or will be spending your money on. Some of the things may be rent, maybe mortgage, student loans, very common thing to have when you graduate. Furniture for the place that you're staying in. Maybe you need to buy a car to travel to that work or career that you're pursuing, or business. Maybe you sign up for a gym membership, you're planning for a vacation coming soon. Maybe you got some taxes to pay, maybe you got to put some money aside for some investments, right? All of these are transactions and I want you to pay attention to the arrows pointing to these transactions. The arrows represent the money and the person in the middle is you. The arrows show that the money is leaving you, it's leaving your control. My question to you is you've probably thought about all the things that you spend money on. Could you write me a check for everything that you spent your hard earned money on? Can you do that? The answer is no, and that's because the money is gone. You see, there's a hidden problem in society that is not talked about a whole lot. So earlier I introduced you to this gentleman, right, AR Nelson Nash. He also wrote this book. All right, so this book is called Becoming your own banker, the infinite Banking Concept. And it was written, authored by R. Nelson Nash. We always encourage anyone that we work with, or just anyone in general, when we come across them and we try to talk to them about this concept, we ask them, have you read this book? And if you haven't read this book, I encourage you to do so. You now know that when you spend your money, that money is gone forever. That money that you spent could have been used to make more money for you, but instead it's gone forever. You lose permanent control of the money that you spend. And that is because there is a banking problem. When you receive your income, where does it go first? So the income that comes in from wherever it is, right, your job, your business, whatever income source, where does it go first? If you set a bank, you're absolutely right. The money comes in and immediately goes to a bank. Now, I say a bank because more specifically, it's someone else's bank that you happen to have an account in. The account is yours, but the bank is not. When you spend your income, where does your money go? Here's what happens. It transfers from your account in someone else's bank to the account of the person or business that you transacted with, which is also in someone else's bank. This is the banking problem. Your income's coming in. It goes through the Books and of someone else's bank. You then access the money for your financial needs, and then it comes back because it goes through the person and the business, and then it goes through the books of someone else's bank again. So that's the way the money flows. And the fact is, you work hard to make an income, but someone else is getting all your money. So how do you solve this problem? Now that we understand the problem, let's see how we could solve it. The way you do it is you have to change the way your money flows. So let's understand the banking function. The banking function has four players, all right? You have the depositor, the borrower, the banker, and the bank owner. The depositor is the person that deposits the money in. Right? Pretty straightforward. Borrower is the person that borrows money. The banker is the person who's at the bank and is the one that could be the bank teller that will gleefully take your money and put it into your account. But it's a der bank. And then you have the bank owner who are the owners and shareholders of this bank. They own these institutions and they generate their income from the transaction and fees that we pay when we deposit money into the banks. And that leads me to my next question. Which players benefit the most? If you are thinking the banker and the bank owner, you're absolutely right. Think about the fees that a bank makes on your money, and then think about the dividends that are paid out to the owners of the banks. When the pandemic happened, the banks were still making money. Why? The process of banking still has to occur. We still have to deposit our money. We still have to withdraw our money. That doesn't change no matter what happens in the world. And they benefit off of that. The banker and the bank owner. So the question is, which players are you currently and most likely currently, you are the depositor and the borrower, but you are not the banker or the bank owner. You need to be all four players in the banking function. You have to take control of the entire banking function in your own hands. And so have you ever wondered why you use a bank to begin with? Because you need a place to store it. You need a warehouse for your money. Your money must reside somewhere. And this is your current warehouse. It's someone else's bank. Now, by establishing your own private family banking system, you can create your own dedicated warehouse for your money. And this would help you become all four players in the banking function. And that is going to allow you to take control of 100% of your banking needs, what else could you use to create your own warehouse for your money? Right. We talked about what you use today, which is a bank, but that's not the most ideal. Now that we understand the banking function and who we need to be. Right, the four players. So what are some other places or warehouses we could store online?

So here are some examples. Okay, so back in the day, you know, mattress was a popular one. Some of us may have a safe at home, but maybe it's not big enough for all your money. Right? And same thing with the wallet. Maybe you could store a couple dollars in there, but not all of it. And then some of you might might choose the toilet. All four options here obviously are not the most ideal place or the ideal warehouse for your money. Always remember though, your money must reside somewhere. And so the warehouse I want to introduce you today is a participating dividend paying old life insurance policy. Now, this type of life insurance policy, it's the tool that we use to warehouse our money so that we can take control of the banking function. So remember, it's the tool that helps us implement the process of becoming your own bank. A dividend paying whole life insurance can help create peace of mind and unmatched financial security. So there's three main components of a dividend paying whole life insurance. You have the premium, you have the death benefit and the cash value. So the premium is the deposit that you make towards the insurance policy. Okay? So it's no different than the deposit you make into someone else's bank. It's that same money, but you're putting it into your own bank through the dividend paying whole life insurance. So your premium is a deposit death benefit. So the death benefit is the payout that you receive when you become an angel. Okay? And you will become an angel. No one knows our lease on life, right? The death benefit is the payout that you receive when that day comes. And then cash value is essentially the present value of the future death benefit. The cash value is something that begins accumulating immediately as soon as you start the policy. And it's contractually guaranteed to grow daily. Now why is it congratulated? Guaranteed to grow daily. You see, with the life insurance policy, it is a contract. It is not an investment of any kind. It's a contract between two parties. It's a unilateral, binding contract. Be exact. And there is a contractual guarantee within these contracts between the insurance company and you, the policy owner. And that contractual guarantee is that by age 100, the death benefit and the cash Value has to be the same. So when you start these policies, your death benefit may start at whatever number it starts at, and your cash value may start down here, depending on how much you put in. And then every single day, that cash value is growing to match the death benefit by age 100. Okay? So that's how your cash value is guaranteed to grow daily. And no matter what happens to the outside world, your cash value can only go one way, and that's up. You get to access the cash value while you're alive. And that's what makes this so great as a tool to use for banking, because you can use the cash value while you're alive to take advantage of any opportunities that you see around you. And trust me, when you start this process, when you go down this path, opportunities start coming knocking at your door. When you access the cash value. Not penalized for anything. You're not penalized for accessing it early. You can access it at any time that you want, okay? It's not like any of the RSP products or other financial products where, you know, there may be a penalty involved, there may be some withholding taxes. None of that, all right? You get to access it, no problem. There are several tax advantages, one of them being that it provides a growing debt benefit which is paid to your beneficiaries of your choosing. And that money is paid tax free. Access to that capital. How can you do it? So there's two ways. One way is you can withdraw it completely. Okay. And the second way is you can access it via what is called a policy loan. And again, I want you to keep an open mind because whenever people hear the word loan, they start thinking differently. Now, if you withdraw, you would be interrupting the compound. And the compounding is what? The compounding of the cash value. So the minute you withdraw that cash value, you deplete it by the amount that you withdraw it by. So now the compounding process has to start over again. So we want to avoid that situation. Because what we want to do is we want to use a policy loan. Because if you use a policy loan, the compounding keeps going. It becomes uninterrupted growth. Because what we do is we borrow against the cash value. We don't borrow the actual cash value. So what we encourage everyone to have the mindset of is to become a wealth creator in terms of your mindset. So looking at the slide, this is a very powerful slide. So please pay attention to this. What you see is on the bottom here is a line. So that black line represents all Every day that you are alive. And the green line, with the green dotted line, I should say that represents your cash value. Now at the end of the green dotted line is the death benefit. Okay? So that's what the cash value, remember, is trying to catch up to. Now what the red lines represent is you accessing a policy loan. So right here you'd be accessing a policy loan. And now when you access that policy loan, you always want to have a method of paying that loan back. So remember, you're not replenishing the money that's in your cash value because you haven't touch the cash value. The cash value is continuing growing. You just borrowed against it. So the policy loan is separate to that. So now you want to have a method of paying back those policy loans and say you choose a method of making those payments. And as you make those payments back, your policy loan goes to zero. And so what happens is you get to re access that same amount again. And so you could do this over and over again and you would always have access to capital without affecting the growth of your money. So here are some important facts to remember when it comes to a policy loan. So with a policy loan, it has no impact to the daily cash value growth. There's no reduction of the death benefit while you're alive. Death benefit is the death benefit that does not reduce, there is no negative impact to the dividends and there's no exposure of loan. So it doesn't show up on any government reports or credit reports. It doesn't show up. It's, it's a completely private loan. And at debt, the outstanding policy loan balance. So say you take out a policy loan and there's a loan balance that simply gets deducted from the overall debt benefit and the remaining that benefit is paid out to beneficiaries. All right, so what is the policy loan process like? So all you got to do is you make a request online. When you get the policy, you get a portal that you can access through the company that we work with. You can make this request online directly. All you need to make this request is your name, your policy number, the amount that you would like to receive, and then you just got to sign and date it. And then no questions asked. And when I say no questions, there's no qualifications, there's no requirements of pay stubs, there's no need to give them a check, your credit history, credit report, none of that. They will give you the loan, no questions asked. And then on top of that, when you got to make these Loan repayments. There is no commitments to these loan repayments. You are in complete control of making these loan repayments back through the policy loan. So what you just witnessed is an alternative way to flow your money. Remember, the process of banking has nothing to do with an investment of any kind nor it has anything to do with a rate of return. It simply gives you more control over the way the money flows. So let's look at a case study. So we have Jordan. He's 22 years old. He's a recent engineering grad. He just landed his first professional job as a junior mechanical engineer. Makes a very reasonable salary for a first time engineer. 60, $60,000 a year. And he's single, currently lives in Ontario. And he learned about IBC in 2022. So Jordan's objectives, he's looking to pay off his student loan debt and he's looking to save and invest for financial freedom. Now as I mentioned, his primary objective is student loan, Right? So let's look at a student loan. So his student loan is a balance of 29,000 or was a balance of 29,000. And his monthly payment was about $305 per month. Now currently what Jordan does is he uses his income to pay off the student debt on a monthly basis every single month. $305 is leaving Jordan's control. Remember, Right. When you spend that money, it's leaving your control. Now if Jordan keeps paying the 305 per month, he will eventually pay off his student loan. He will do that and he will achieve his goal. But the 29,000 that he would have sent as payments over that timeframe is gone forever. He would have lost full control of those $29,000. Just imagine what that $29,000 could do for him. Or maybe you have a loan like that, what could it do for you if you change the way the money flow first, what can you do differently? What can Jordan do differently? First things first, you gotta read the book, right? So in the case of Jordan, he read the book. He read becoming your own banker. He decided to take control of his future financial future. He decided to rethink his thinking. And with an open mind, he read through the book. Jordan understood the problem and therefore he understood the solution. And he decided that he wanted to implement the process of banking in his life. Jordan decided to take control of the banking function by changing where his money resides. And right now, if you liked what you saw and you feel like you can take control like Jordan, I encourage you to take action right away. Text the word schedule to the number on screen. And you will get in touch with a team of ours, the wonderful advisors here at Descendant Financial, and you can get started on your journey as well and taking back control of the money flow into your hands. As I mentioned, Jordan decided to implement this process, so he had to start a policy, right? Because to implement becoming your own banker, you got to use the tool. And that tool is the whole life insurance policy. Jordan's the policy owner. Jordan's the life insured. Now, the premium Jordan wanted to deposit into his banking system is $10,000. So remember this money that Jordan already had and he had it saved in someone else's bank. So all he was doing was changing where that money resides. And he was now putting that money into his own system. Through this policy. His starting debt benefit is about 320,000. And these are real numbers. The daily cash value growth in the first year is $4.20. Now this is too close approximation. And this is based on my experience working with these policies day in, day out. With a policy with 10,000 worth of premium, the cash value growth is about $4.20, give or take. So he started the policy in May 2022. And as soon as he started the policy, he got immediate access to cash value. Based on my experience, by putting the entire 10,000 in as a deposit, he would be able to access about 5,500 in cash value right off the bat. Okay. Within the first 30 days. The way you access the cash value is by taking out a policy loan. And so the immediate loan available, and this is across the board for majority of the policies, is you can access 90% of the cash value via a policy loan. So in the case of Jordan, just to make figures nice and round, that number is 5,000. So the next step, after setting up the policy, Jordan gets that loan available amount of 5,000, and he initiates a policy loan. Just make a request for it on his portal. So now he receives this $5,000 within five to seven business days. What he immediately does is he uses the 5000 to reduce his student loan balance of 29,000. So immediately on day one, his student loan balance drops to 24,000. Now the Daily interest charged by the insurance company is about $0.85 per day. So all I did to come up with that number is I took the 5,000 that he borrowed and I multiplied it by 6.2%. Okay? And then I divided that number by 365 days and that's how I got 85 cents. There's a policy loan repayment that Jordan determined that he's comfortable paying. And again, I want you to pay very close attention to this. He decided that he wanted to use $100 from his earned income for loan repayments. No one told him to put $100. He could have chosen any other amount. He could have chosen whatever timeframe that he wanted to. Even if you wanted to take a break from making those payments, he could have done that. No one is going to come knocking on his door asking for that repayment. Why? Because the insurance company has the best collateral in the world and that's your life. So they know that they're going to get paid. Let's look at what else is happening in the policy. So remember, you took out a policy loan, right? What's happening to the cash value? So it's still growing. So in Jordan's case, the cash value is still growing and it's growing at $4.20 per day. Now, the daily interest, as we mentioned, is $0.85. So if we do $4.20 and we take away the $0.85 in interest per day, his net cash value is $3.35 per day. So the cash value growth recaptures the interest charged. So here is the power of uninterrupted compound. Okay? So we're going to look at it on a monthly basis. So the monthly cash value growth is $4.20 times 30 days, which is $126. The monthly interest on the policy loan is $25.50. That's $0.85 times 30 days. The monthly policy loan repayments that Jordan chose to put back towards his policy loan balance is $100. So the monthly transaction is the $100 plus the 126 in cash value growth minus the interest. So that's $200.50 that he gets to access again. And where else can you pay back $100 per month and immediately get access to $200.50? Now, let's fast forward a year. So let's look at Jordan's progress today, one year later. So his year two premium was 10,000 again, because that's the premium amount that he chose to deposit every single year. So the total premium in in so far over two years is 20,000. His new immediate second year cash value access is another 5500. So this is based on the new 10,000 deposit that has gone in. The new immediate second year loan available is 5090% times the 5500 the loan repaid is 1200. Right. So that's what he repaid back into his system. $100 per month times 12 the previous year. Cash value growth is 1533. So that's the $4.20 times 30 times 12. Previous year interest is $310.25. So now his new total loan available for the second year is $7,422.75. So he initiates a policy loan for that amount and then he immediately uses that amount to reduce the student loan balance further. Now, keep in mind, over that year, he's continued putting the monthly 305 right to sustain the payments required for the student loan. But he had to apply patience, right? He had to give his policy the chance to grow to the level where he could access 7422. And it only took him a year to get there. So he was able to access that amount and then immediately reduce the principal balance to 16,005,77. So within a year's time, Jordan reduced his student loan balance from 29,000 to 16,577. Did Jordan, in this transaction lose control of his money? No. And why is that? Whose money did Jordan use to pay down the student loan? If you said the insurance company's money, you're absolutely right. And where is Jordan's money? If you said it's sitting inside the policy, you're absolutely right. It's growing in the form of the cash value every single day. So here's a visual analogy to hit home on that message of whose money is being used. So on the left you have a swimming pool. On the right side we have a bottle of water. So the swimming pool represents the insurance company's money. And what is the insurance company's money? This is the pool of capital that they have control over. This is everyone's premium deposits, all the profits that they make, it's all controlled in one pool of capital. The bottle of water represents Jordan's policy cash value. Now, when you make a request for a policy loan, the insurance company gives you the money from the swimming pool of capital. And what they do is they do not touch. What they do is they put your cash value as a collateral and then they put a lien on your death benefit. Jordan' cash value in his policy continues growing and compounding occurs uninterrupted. In this example, Jordan took control of his money by taking control of the banking function. Becoming your own banker has nothing to do with an investment or rate of return, but it has everything to do with controlling the way your money flows. Jordan will achieve both his objectives at the same time. Not only was Jordan able to pay off his debt, but he was able to grow his net worth in the form of the cash value at the same time. Did Jordan work any harder? Nope. All he did was change the way the money flowed. He just added more efficiency to what he's already doing. Banking occurs every single day. Whether you like it or not, we are banking every single day. By adding one extra step to what you are already doing financially, which is process of becoming your own banker, you can have total and absolute control over your financial future, reduce financial risk and enhance any financial outcome. I'm not just talking about paying off debt. I'm talking about enhancing investment returns. I'm talking about to the people out there that are into real estate or getting into real estate, or the graduates that have some stocks or some investments. Maybe you're into options trading, maybe you're into crypto, maybe you own some bitcoin, right? You can enhance anything that you're already doing. And you can even reduce the risk associated with those types of investments by just changing the way your money flows. This will increase your cash flow over time. You get to pay off debt while still building wealth. And you never lose control over access to money. It doesn't matter how much premium you start with. What matters is that you start and when you do, you're going to feel so amazing about it. And not only the you today, but the you 10 years, 30 years from now. And here is your next step in continuing your journey on discovering how you can become your own banker. You should have gotten the link and if you don't have that number already, you can save it right now and text the word schedule.