Becoming Your Own Banker | Create A Cash Flow Confident Business

If you can become all four characters in the financial play, then you will absolutely create a cash confident business. And you're going to create a very stable, certain peaceful, stress free way of life financially. And when you need ready access to money, it'll be on demand and on your terms. The human condition of instant gratification, everybody has experienced that at some point in their lives, right? We deal with instant food, instant coffee. You could order packages from one of the largest E commerce retailers on the planet and have it delivered to your door the same day that you ordered it. So people are very accustomed to this. But when you're thinking about building a cash confident business, if you're actually wanting to go into business, that's one thing. But if you want to go into the banking business, which is a business that everybody should be in, you should be in two businesses. The business that you're in, you earn a living in that business and you should be in the banking business. One of those two businesses is going to be far more profitable. I want you to think about Sam Walton. So Sam Walton was the founder, the late founder of Walmart. When Sam Walton opened up the very First Walmart in 1962, he didn't get out of bed one morning and say, wow, I want to start a business this morning and I want it to be producing billions of dollars in revenue by next Friday. That wasn't his approach. He began with his why. He began with wanting to have a deep understanding of what the customers he wanted to have truly valued. That's where his journey began. In five years after opening, he had 24 locations in one state and they had reached 12 million in annual revenue. If you fast forward to today, the results speak for themselves. So he wasn't in a mode of instant gratification. He was in a mode of consistently developing a deeper understanding of what exactly it is the customers that he wanted to have and the customers that he did have truly valued. And, and then he delivered that over and over and over and over and over again. 11,500 locations, 28 different countries, about 72 different banners that the Walmart enterprise operates under, and just shy of $612 billion in annual revenue. But it all began with a very powerful why. So when you're thinking about getting into business, that's where it should begin for you. Whether it's an actual business where you want to provide value for paying customers or paying clients for goods and services, or it's the banking business that you want to create for yourself, your family, it is a business that's what I want to get across to everybody. Everybody knows who this guy is. Jeff Bezos started Amazon in July 5, 1994, and wake up that morning and say, wow, I want a business that's going to produce billions of dollars in revenue by next Friday. He began with a why? I'm going to solve a problem for the consumer that the consumer doesn't even know they have. How long did it take for Amazon to become profitable? Seven years after opening, stockholders of Amazon got to the point where they wanted Jeff Bezos to be publicly executed because they were thoroughly convinced that this business was never going to be profitable. And the shareholders that stuck with him are doing extremely well financially today because Today Amazon's producing $511 billion in annual revenue. And look how long it took for the business to grow to that level. And so when you're thinking about starting your family banking business and you want to implement this process of becoming your own banker, the infinite banking concept, I want you to remember Sam Walton and Jeff Bezos. I want you to remember their journey. Because the human condition is instant gratification. I want to skip over all of the time, the effort, the study, the work that's required to go from opening the business on day one to having a very durable, profitable business. Don't make that mistake. And there's so many people out there in the marketplace who are sensationalizing the infinite banking concept. And I'm here to tell you that it is ridiculously simple and it does not need to be sensationalized. But your behavior as a policy owner is going to be far more critical than the behavior of the insurance company. Before we can start jumping into the solution of building a cash confident business, you need to have a deep understanding of the problem. Otherwise the solution just won't matter to you. Remember, both of these founders started with a why? Why am I doing this? What is going to drive me in terms of purpose and intention? And they didn't need to be rich to do it. Jeff Bezos was not rich when he began Amazon. He had to borrow money from his parents. Sam Walton was not wealthy when he started Walmart. And so if you think about this from the vantage point of becoming your own banker. When I first started my journey with the process, I'm going into my 16th year, my very first policy was 1400 bucks a month. I wasn't rich. I was very rich in terms of being blessed with family, great friends, but I wasn't rich in the sense of money rich. And fast forward to today. We have 67 policies in our family banking system. My premiums are going to be in excess of 600,000 this year. And we've built a family banking system where we no longer have to rely on a conventional bank for anything other than the convenience of debit. And so this wasn't about getting rich quick, it was about getting rich. Certain, there's a big difference. But I didn't skip over the time and the energy and the work and the study required to build a family banking system that's durable. And that's what we coach our clients to do. People who want instant gratification, we're just not well suited to work with because it's just simply not possible in implementing this process. If you want to do it properly and you want it to be durable, you need to know your why before you begin implementing the family banking system. And you don't have to be rich to do this. You have clients that put in as little as 100 bucks a month for policies on their kids. We have clients that put in multiple six figures a month. And we have clients who are just doing this for their families, for themselves personally. And we have clients who are doing this for their business, their partners, their key people, their joint venture partners, and so much more. And so if you fit within any of that characterization that I just described, we can help you. And this is something that you can do. Think about all the money that's just literally lying out of your bank account every single day for all those things that you need throughout your lifetime. If you were to think of all the money that you've spent up to this point in your life for everything, can you write me a check for that amount of money right now? Absolutely not. Here's the reason why. This is a fireproof bag. Everybody should have fireproof bags. If you have valuables in this bag, there's some emergency cash, okay? And I don't have to go to any bank to get it. And if I was to think about all the things that I'm spending money on. Groceries.

Got fuel, got entertainment.

But.

Taxes, we've got.

More taxes.

All this money, this paper.

That'S just being permanently transferred away from you, you want to keep that money in your family, and you want to gradually and incrementally, not overnight, but you want to gradually and incrementally shield all of that money and keep it in the family, you're going to need the use of money for the rest of your lifetime. Plain and simple. Your money has to reside somewhere. And so you can continue transferring money Away from you continue transferring it away from your business. What do I mean by that? Well, when you pay your bills, when you transact with your debit card, what you thought was at your bank isn't really there. It's just an illusion. Look no further than what's happening with the regional banking crisis and the things that are going on now. The large conventional banks are just fine. They're extremely well capitalized. They're just fine. But the point that I'm trying to make is, is that if you recognize that there's a place where you can store your money, and from that place you get to control how you finance everything that you need in your lifetime, and you're going to keep the tax collector away from it. If you think that that's going to be achieved overnight, it can't be because you didn't get to the situation you're in financially right now overnight. This is going to take time. And believe me, when you're connected with any one of my teammates, they're the very best at this, hands down. And I say that coming from a very biased point of view because I have such deep admiration and respect for all of my teammates. I've seen them in action and they're really good at what they do. These are the things that you need to have a deep understanding of. You can shield money from decimating taxation, you can shield money from unnecessary risk. You can shield your money from any banking crisis. It's just a fact. Regardless of what's happening in the economy or what's happening with inflation, or what's happening happening with interest rates, etcetera, the process of banking is going to continue to go on no matter what. The question is, who is the banker in your life who is controlling that function as it relates to your needs? Because if you already have a business, then you've got an opportunity here. And if you're thinking of starting one, you've got an opportunity here. We're going to put you in a position of total and absolute control. And so if you think about how you finance the things in your life right now, you either pay cash for them, you either lease them, or, or you finance them. That covers about 99.999% of the Canadian public. But each one of these methods of purchasing things in your life involves a permanent transfer of money away from you. Think about it. When you pay cash for something, you build up that money inside of your bank account. You and I both know that your bank is not letting that money sit still. And then when you Buy the thing that you wanted, you permanently transferred all that money away from you. You can't earn interest on it again, you can't spend it again, can't use it again, not only for you, but for every future generation that comes after you. That's called lost opportunity cost. And I've heard a lot of people use those words, but I've seen very few people who actually reckon with it. There are no exceptions to lost opportunity cost. You're either paying interest to someone else to access their pile of money, or you're permanently giving up the interest that your money could have otherwise earned because you're paying cash for things. When you lease something, that's a no purchase payment plan. You just keep making payments, and every payment is someone else's passive income. And so when you hear from accountants, who are wonderful people, think in terms of the tax code, and they say, wow, there's a lot of tax advantages to leasing, especially if you're a business owner. That's absolutely true. That's legitimate advice. But was the person who purchased the thing that you're leasing stupid? Because what they value is the stream of payments. And then when you finance something, think about it from this vantage point. You have to access someone else's money. So you've got to go through lengthy, nosy credit applications, you have to provide personal guarantees, you have to go through credit checks. You got to verify income. Then if you qualify to be a borrower, guess who sets the repayment schedule? The lender. The lender dictates how that money is expected to be repaid and what the terms are. And so when you look at it from that perspective, what you're dealing with is you're dealing with characters in a play. You're dealing with a process called banking. And you're dealing with an absence of control.

You.

And when people do not have control, that manifests itself in either fear or anger. And all of you have experienced some interaction with a banker at some point in your lifetime where you've either been in a position of fear or anger. We practice the process of becoming your own banker. So we don't purchase things the way that you do. We store money inside of an entity. Dividend paying, participating whole life insurance, ideally with a mutual company, meaning there's no stockholders participating. Policy owners own the company. We store money there. And from that place, we control how we finance all the things that we need throughout the course of our lifetime, and we recapture the money. So the money that was being transferred away is money that's flowing Back. It's money that's coming back to the family. And I haven't met a single family yet who has said, wow, we really feel disadvantaged that we have more money coming back to us. We'd rather go back to the old way of doing things. So this is the new way. So when you think of all these things that you would otherwise pay cash for lease or finance, you're simply going to change the process of how, how you go about purchasing these things. Super important to understand who the characters in the play are. You've got the depositor, which all of you are. You are all depositing money onto the books of someone else's bank. All of your employers are also depositors because your paychecks are automatically deposited onto the books of someone else's bank. Then you've got the borrower. The borrower is the most important character in the financial play. Without the borrower, nothing happens, capital doesn't move and, and all of you are borrowers, all experience that. Then you've got the banker. The banker is the individual who sets the terms and how people can gain access to the money and what the repayment schedule is going to look like, what the interest rate's going to be, what the qualification criteria is going to be. And then you've got the bank owner. The bank owner is the character in the play that makes the most money. Understandably. So if you can become all four characters in the financial play, then you will absolutely create a cash confident business. And you're going to create, create a very stable, certain peaceful, stress free way of life financially. And when you need ready access to money, it'll be on demand and on your terms. And then Nelson, God rest his soul, he developed the five golden rules. And I want to share these rules with all of you because they're so critical for you to have success with this process of becoming your own banker. The first golden rule is to think long range. And what Nelson meant by that is he, he meant that you should be thinking three generations past your own. You're going to need the use of money for the rest of your lifetime. The next generation is going to need the use of money for the rest of their lifetime and the generation after that and so on. You want to create a cascading effect where you're creating a system of policies through the family banking system. The second golden rule is don't be afraid to capitalize, meaning don't be afraid to pay premium and don't be afraid to repay your policy loans. Your money has to reside Somewhere. And believe me, 16 years into my journey, I believe there is no better place to have it reside than here. The third golden rule is don't steal the peas. The fourth golden rule is don't do business with banks. Your money must reside somewhere. It should reside inside of dividend paying participating whole life insurance contracts. Ideally with a mutual life company that you co own. And then five is to rethink your thinking. One of the fundamental truths is that most people would rather die than think. It's all about understanding that if the conventional banks. I'm not talking about the banks that are in trouble. I'm talking about the banks that are extremely well capitalized if they are purchasing dividend paying participating whole life insurance contracts by the truckload. I'm talking about billions of dollars in premium and they're not putting any of the depositors money into mutual funds. What does that tell you? Because I'm here to share with you that the top 1% understand this and they do this. And I'm really sick and tired of just addressing the truth. Top 1%. I want to lift other people up so that they can create a peaceful, stress free way of life financially regardless of where they're starting from. When we get the frequently asked question why isn't everybody doing this? The primary reason is that your dealings financially are with the very institutions that don't want you to know about this. Stop and think about that. I haven't met any ultra high net worth person that has ever asked me to work with them. Who has ever asked me about RRSPs, mutual funds or any of those types of financial products. Not one has ever asked me that. They all ask me how much capital can I put into dividend paying participating whole life insurance contracts because they understand that these contracts cannot go backward. The cash value that piles up on a daily basis is contractually guaranteed. The cash value that piles up on a daily basis attracts nobody from the tax collector's office. That build up is shielded from tax. They get to participate in the divisible profits generated by the income the insurance company because they co own the insurance company. And those dividends attract no tax. There's a contractually guaranteed ever increasing death benefit that will be paid exactly when it's needed the most. And that's my definition of the best investment. One that pays the most when it's needed the most. And the death benefit proceeds attract no tax for all of our business owners out there or for anybody who's very active in real estate or for anybody who's really active in generating passive income, the policies are exempt from the passive investment income tax rule. Dividend paying, participating whole life policy is the greatest exemption that exists in our tax code today. And why do you think that the government would place restrictions on how much money can go into one of these instruments? Because it's a bad thing. Because they don't want you shielding all the buildup from tax. So remember, everything begins with the way that we think, and then we have to apply logic to this framework. Business owner who had said, hey, I've got surplus capital in my business right now to the tune of a half a million dollars, and I generate a few extra hundred thousand in surplus every single year. I want to create a second business, and I want that business to be my banking business. But I don't want to change my company's cash flow for the next five years. So I want to stagger this money into a policy. And that's exactly what the business owner did. The business owner didn't skip over the time, the effort, the study. Business owner wanted to know how to become his own banker and how to create this new business where no business existed before. And so through his study, he said, you know what I find really appealing? I said, what's that? He said, for example, take a look at what happened if we isolate this annual buildup of cash value. Let's take a look at what happened. Does everybody see what the annual increase in cash value was from year two to year three? Vern, can you help me with some math here and tell me what that number is?

That answer is 108,349.

Is that more than 100,000?

It is more than 100,000.

Okay, good. He recognized that, too. He didn't need his accountant to help him with that. Okay, yeah, he figured that out on his own. He said, wow, this is really awesome. And I said, well, since you're on that track, why don't you walk me through what happened from year four to year five?

So he was an expert at what Nelson would describe as third grade arithmetic.

Yeah. So can you do the same calculation for me?

And that would be 113, 190.

Is that more than 100?

That is more than 100. In fact, it's more than 108.

Okay, good.

And then after the fifth year, he said, well, here's the deal. I've done some math and I'm prepared to continue putting $24,650.11, not a penny more into this policy each and every year. Can I do that? And what Would the net effect be of doing that so, well, why don't we just do it? The net effect is you're going to have more capital than you put in. Are you okay with that? If you don't want that, then I can book you an appointment with your psychiatrist. But if you're okay with it, let's see what the effect of that is. So, Vern, so how much did money did he say he would put in? Not a penny more. In year six?

$24,650.11.

What was the increase in cash value from year six to year seven?

We have $51,538.

Is that more than 24?

A lot more than 24.

So after that occurred, I asked him, which number do you like? The larger number or the smaller one?

I don't know what he said, but.

I certainly like the number.

He said, I really like the larger one. And I said, well, okay, well, why don't you keep putting that into the policy? Because remember, everything begins with the way that we think. So just help me again with some thinking. If you're going to put 24,006, 50 into the policy and 11 cents and not a penny more, and the annual increase in cash value is going to be more than 50,000, logically, would you ever stop flowing 24,650 and 11 cents through that entity that you own?

If I ever stop, Jason, I want you to drive down to Calgary and just slap me right in the face.

Because whose business is it?

It's my. Well, it's his business.

Okay, so you remember when I was describing Jeff Bezos and Sam Walton, if somebody had explained this to them when they got their businesses off the ground, do you think that their businesses would have accelerated maybe just a little bit quicker?

Absolutely.

You better believe they would. There wasn't instant gratification. I put 100,000 in. The cash value piled up 85,000 3, 40 in the first year. That's not instant gratification. Whenever you crank up a new business, it takes time for that business to achieve profit, Profitability and to become. To go from startup to sustainable to durable. Let's go from year nine to year ten.

Wow. 59, 5, 7, 4.

Okay, is that more than 24?

It absolutely is.

That 24 had to reside somewhere. If he owns his own business, does he want the money residing in someone else's?

I would hope not.

I would hope not as well. And then here's the deal. He says, look, I need to purchase new equipment. So. Well, how much is new? Equipment. He goes, well, every time I go out and get one of these machines that helps pack things, just the machine itself is like 40 grand. And then I got to pay for supplies and I got to pay for all this stuff. I said, okay, well why don't we do this? Why don't we borrow against this accumulating value without interrupting it? He said, what does that even mean? So, well, let's go through an actual example. So you're going to go buy that $40,000 piece of equipment. The insurance company is going to place a lien on the death benefit for the loan balance. Your entire sum of cash value is going to continue increasing every single day without interruption. It cannot go backward. And I said, you like neutral, don't you? He's like, you mean like neutral like the gear in my car? I said, no, like when you neutralize cost as a business owner. I said, well, how much premium did you put in at year four in total?

Total would be 400,000.

What's the total cash value?

$402,000.

Did he neutralize the policy, the expense associated with the policy?

Absolutely.

Okay, is he, do you think he's upset or happy with that?

I would assert that he's happy.

You know what we're doing every single year, every single day is we are adding more tax free surplus to his business, his banking business. And then God forbid, when that day comes, and it will come when he passes away, there's going to be a massive windfall that is also tax free, that's going to show up exactly when it's needed the most. Is there anything stupid about him storing money inside of an entity that he owns and controls?

Well, it's got to go somewhere. It may as well go somewhere that you own and you control.

And that business owner had already piled up that money on the books of someone else's bank. We're going to do a crash course on logic. Knowing that you can store money inside of an entity where you get contractually guaranteed daily growth that cannot go backward. Is that something that you want? Knowing that you can get no taxation on the daily buildup of cash value. Knowing that there's no taxation on the dividends which cannot be repossessed or lose value ever. No taxation on the death benefit proceeds exempt from the passive investment income tax rules. A tax free addition to your corporate surplus if you're a business owner ready access to capital on demand on your terms without reducing the asset's value. So here's my logic based question. We know that our money has to Reside somewhere if we can store it inside of an entity where we get all of these attributes that I just described to you. Here's a question from Captain Obvious. How much money do you not want residing there inside of Nelson Nash's book titled Becoming youg Own Banker? If you have not read this book yet, you need to read this book. You have an opportunity. Buy one for somebody who you think would benefit from the gift of what we do. Here's what Nelson described in the book that is just so powerful. I can't emphasize to you how powerful this is. He talks about how it all reminds him of a phenomenon in physics. He says, I want you to take a pail of water to Seaside and I want you to heat up that water to 210 degrees Fahrenheit. All that you have at 210 degrees is very hot water. But once you get to 212 degrees you have live steam that produces unbelievable power. The steam engine changed the world, but it doesn't happen until you get past 212 degrees. Lots of heat goes into the process up to the boiling point, but the dramatic power comes on suddenly. I want everybody to remember what we looked at together just a moment ago. This is where it clicked for the business owner and he understood what Nelson meant about creating live steam. He puts the pot of hot water onto the stove and he starts heating it up. The premiums are the heat, the energy water is heating up. That's the cash value. He gets to a point right here where he creates live steam. The point at which the annual increase in the total cash value exceeds the input, the premium that's creating live steam. This doesn't happen over overnight. This takes time. The business owner understood that. And look at the position he's in now where every dollar that he puts into this policy is producing far more than a dollar. It cannot go backward. He co owns the lender because he's borrowing money from the life insurance company that he co owns. The loans are unstructured so he sets the repayment schedule. And the entire time. You ever been to a store where there's a sign on the door that says no shirt, no shoes, no service. There's a sign on his banking business front door that says if you are in any way employed by or affiliated with Revenue Canada, you're not welcome here. He's keeping the tax collector away from that accumulation. He's keeping the tax collector away from those dividends. He's keeping the tax collector away from his warehouse wealth. That's what I wanted to share with everybody.

So sending financial we serve Canadians and in us we have our company by the name lifeva serving Americans. We are today in North American company serving North America. And that's just a glimpse of our team at Ascending Financial. In the bottom left hand side, imagine that's you. So you, you think. We all think. And when we think, we imagine. When we start imagining, we have ideas and then we start to strategize on the implementation of these ideas. And we implement those ideas by taking action. Action creates some sort of outcome. Outcome is not good or bad. Outcome is just outcome. And then we go back and rethink again and that process starts or continues no matter what. So everything begins with the way that you think. And one of the principles which is near and dear to us in financial and lifeviva is we empower through education so we have resources available to help people really understand what truly is happening out there in the financial world. And if you know what truly is happening, then you know what to do. But it all starts with how you think. Let's go down to some, some basic stuff. So you have a house, you have a mortgage, you make a mortgage payment. And the first thing before you make a payment, you have to earn an income. So this dollar sign here represents your income. And then a portion of the income goes towards mortgage. And when you make that payment, that money goes directly into the bank. Then you have a car payment and money from the car goes into bank. And this bank is someone else's bank, not your bank. You may buy appliances, you may upgrade appliances. When you pay for appliances, money goes into someone else's bank. You remodel your houses, you do your deck, you do your fencing, whatever it is that you do to add value to your property. When you pay for that, money goes into someone else's bank. You buy furniture, you pay for it. Money goes into someone else's bank. You pay off your credit card for living expenses, that money goes into someone else's bank. Bank. You take families for vacation. And vacation these days are actually becoming pretty expensive. Travel is expensive. And then once you're done paying for all that, it goes into someone else's bank. It doesn't matter which bank, the money ends up, it always ends up in the banking system. There's only one banking system, we just call the bank with different names. You buy investments, bonds, stocks, real estate, whatever it is that you buy as investment. At some point, point that money ends up right back into the bank. Going back to that picture. So now what I've Done is I placed the money right around each transaction. So the moment you use that money to make payments for the things that you need, all that money goes into the bank. And moment that happens, you have less cash confidence because you have none of that money left. And that's what Jason talked about. He says you're doing all the work and someone else is getting up money. And that's the problem. That's why you have lack of cash confidence today. Now, I just looked at an average house mortgage payment. I'm not looking at Ontario payments, I'm looking at Alberta payments. So an average family pays about 30,000 per year for house mortgage. Interest rates have gone up. So payments have gone up. And an average family pays about $10,000 per year for car payments. So if you take 30,000 and you add 10,000, that's about $40,000. And this family is earning about 150,000, $50,000, which is average Canadian North American family income. Now, if you look at how much money are you paying for mortgage and car combined and how much income you're earning over the course of the year, that's 2,000 working hours that you have to exchange to earn that income. But out of that, 40,000 is just going on payments. So technically, 30% of the time that you actually work every year, you working for someone else's bank, that is truly what's happening. If you see that and you don't feel like this person today, I bet after watching that slide, you definitely are going to be lost in terms of, wow, I didn't even realize that that was truly happening. Again, if you don't know what's happening, you don't know what to do. We want to share what truly is happening out in the marketplace so that you can intelligently make a clear decision on what's next for you. And once that happened, once the money leaves your family for the things that you need, this is what happens to your cash confidence. It gets shattered. Your actions today is creating cash confidence for someone else, AKA that someone else is the bank. You're doing all the work, someone else is getting all your money. So in the middle, you're you. That's you right there. And then you have a mortgage payment. And I covered some, but now I'm going to go into more details. Car payment, lines of credit, credit cards, appliances, house remodel, furniture, vacation clothes, property taxes, boat payments, healthcare investments, medication, religious and charitable causes. Cairo physio. What's happened to all that money? When you have less of that money because you have to Use money to buy those goods and services. If you continue to do the way you are, does that add to your cash confidence or does it reduce your cash confidence? You're doing all the work to earn money, but everyone else is getting your money. And if you feel like that today, I can understand your pain because I have been there myself. But again, it's not your fault. It's not your fault because you didn't know anything else. But today, as you're educating yourself, today is when you are actually realizing what truly is happening. Now. What can we do about it? If that's the question that's coming up for you, well, then we can certainly help. But before I dive into what we can do about it, I just want to share this quote. It really helped me rethink my thinking. The quote is having the right answer is not, but having the right question is genius. It's just that sometimes we don't have the right questions and hence we don't get the right answer to the solution. And hence rethinking and thinking about the questions to ask so that you can truly understand what the problem is. It's such an important thing. And here's what you have to do. You just have to have the money coming back to you. That's the solution. That's literally what's going to solve the cash confidence problem that you have today. And if you do that, then, yeah, you're going to feel a little excited about it and you're going to feel a little cash confident. Now, money has to flow to meet your need to purchase the goods and services, investments, etc. When money flows, some sort of banking function has to be used to flow money. Nothing happens to the exchange of money without the function called banking. So banking is necessary, or if I may add, function of banking is necessary, but banks are not. And if you want to have cash confidence, what you have to focus on is how do you control that function called banking in your life? And here's what you have to do. You have to start your banking business. That's the solution. There's no other solution. You got to get into the business. If you have to create a bank like the one that you already know, well, then here's the steps that you have to take. You already are working with some sort of a bank today. It doesn't matter what that bank is, but if you have to create that kind of bank, then here's the steps that you have to follow. First things first is you got to study the business. Now I got Nelson's book open in front of me right here and I'm on page 19. I'm going to read something from Nelson's book. And the topic is creating a bank like the one that you already know about. So step one is you study the business. So you must first study the business so that you have a firm grip and what it is all about and feel that we can run a success in the business. Without this confidence, you're fighting a lost cause because it's a jungle out there. Step number two, to create the bank that you're already familiar with, you must get capital. And Nelson says, next you must get some capital money. And it had better be in the order of millions of millions of dollars. This money must sit in some other bank in a very liquid form. It is earning a very low interest rate. That's step two. Step number three is you gotta get a bank charter. Then you go to the banking commissioner's office and apply for bank charter. Bear in mind that commissioners don't hand out charters all the time. The chance of you getting one at this point is probably less than 100 to 1. There are a lot of other folks that would like to be bankers. You must wait for your turn. And then let's just say you get the bank charter. All that happens. And then you have to buy an expensive building, real estate, which you can call your head office. And then after that you have to start doing marketing. You have to start inducing people to make deposits in your bank because the bank cannot make loans without deposit. But here's the thing. Let's just say you go through all those steps and now it's time to get people to deposit. Here's a question for you. Why would someone trust your new bank when they already have a relationship with someone else's bank? Why would they give you the deposits? And if you can't get deposits, then you cannot run a bank. And all this up until this point, that's going to take a lot of time and a lot of capital to create a bank just the way you already know it. Well then the question is, what's the ultimate. Well, how about. What we're going to talk about today is going to talk about creating your own banking system, which is your own banking business through a dividend paying whole life insurance. Now, before we dive into understanding how we can use a participating dividend paying whole life policy to start your banking business so that you can start controlling the banking function in your life so that you can have the cash flow coming towards you so that you can have that cash confidence. We have to first understand the word cogeneration. And you may have heard about cogeneration, but let's go back and revisit cogeneration. On the left hand side, this is a boiler. Underneath the boiler, let's just say there's this fuel and natural gas that's burning and then there's water going into the boiler. So once the water hits the steam, as Jason mentioned it, you know, it takes time to get to the steam. Then steam goes into the turbines and turbines create or run the generator and generator creates electric electricity. So this business is creating electricity for consuming it. So they have to run their own business. So they need electricity city. But if they consume more than what they need, they can sell it to the power grid and that's co. And that sale happens to the method of co generation. If the business has to sell that extra power into the power grid, they don't need to erect any additional power lines, they don't have to hire any sales force and then they certainly don't have to ask any potential customers if they would like to buy. Because the power lines are already set up by the power line companies. All they have to do is generate it, tap into their system of distribution and distribute the power to public. They don't have to go do any of that extra work. That's co generation, doing things together. So you have to understand how the power distribution system works and simply tie into the established system. And it is much more efficient tapping into existing system rather than trying to do it all by yourself because it saves time, it saves capital, it reduces the time frame and getting things done. Creating your own banking system to the user participating whole life policy is just like cogeneration. Why? Because life insurance companies have everything already set up that you need to implement the banking function in your life. All you got to do is just tap into their resources, their systems. They already have the building, they already have the team members to do all the administrative work for you. They already have all the tech support, they have the distribution channels set up agencies, advisors to go distribute the products and make profit. That's already set up by the insurance company. All you have to do is understand what is going on in such an insurance plan and tap into the system to start controlling the banking function. But the tool that you have to tap into the insurance company, the tool that you use is called participating dividend paying whole life insurance. Because this is the tool that allows you to truly participate as cogeneration and also implement the process of becoming your Own banker. And when you buy a participating dividend paying whole life policy, you're not just buying a contract, you are buying a co ownership in the life insurance company which is a business. And when you buy co ownership in a business, you're rewarded with profit via dividends. Your ownership in business is based on your contribution principles. So the more you contribute as premiums, the bigger the ownership stake you have in the business, the more profits you're going to own. And profit is just one way to benefit by this co generation. But that has nothing to do with becoming a banker. I'm going to touch base on becoming a banker. Earning profit using the system is just one way. The dividend profit that I'm referring to. But I'm going to also talk about how the 2 tool can be used to finance the things. In addition to this, life insurance companies have been in existence in North America over 100 plus years. Some insurance companies go beyond 200 years in North America. Now here's some of the products that insurance companies sell. So term life insurance, participating whole life policy, universal life insurance, group benefit program, savings and retirement program, critical illness disability insurance and long term care. So in exchange for these products which they sell using the distribution channels, in exchange for these products, they collect money, they collect premium and then they deploy that capital to grow their money pool to offset all the risk that they have. So everybody who has a tool like this, who have the products like this with a life insurance company, everybody is contributing to the profits of the insurance company. Because in exchange for these products, insurance companies get money and they deploy that money and they put it to work right away. Insurance company is a business, no different than how your bank deploys money and puts it to work right away. So does the insurance company. So everybody is contributing to their profits. But only participating dividend paying whole life insurance policy owners are also, well only they are sharing the profit from the insurance company. So they are the one participating in the profit, but everybody else contributes the profit. So insurance companies collect that money, they put it to work mostly in fixed income assets. And then when they have profit, after covering all the operating expenses, they pay profit to participating policy owners. So that's one aspect of this particular product which is possible by cogeneration. So if you think about what else. So Jason talked about contractual guarantees. So here's the contractual guarantee from the insurance policy or insurance company on this particular insurance policy. And the contractual guarantee is that by age 100 cash values must match death benefit. You have your family income coming in after expenses, family income Goes into premium and you can see premium 1, 2, 3. Because you have to create a system of policies. It's no different than how banks become profitable. They open more branches. No different than that. When you start one policy, you have more profit in cash flow or you run into windfalls. You just keep expanding your system. The bigger your system becomes, the more co generation you have with insurance company, meaning more dividends, but more you can also control in terms of banking function, which we're going to dive into a case study in a bit. So all these premiums go into your family banking business. Now, since it is life insurance, your premium does one thing and one thing alone. And what it does, it buys life insurance, which is death benefit. The moment death benefit gets created, it accumulates something called cash value. And a policy owner has full access to cash value. And the one way that they can access cash value is via policy loan. What they can borrow as a policy loan is 90% of cash value and it's already pre approved. There's no qualification for the loan. There's no income verification, credit check. There's no even consent to repay the loan. The policy owner has total and absolute control to pay back the loan. Now the contractual guarantee is by age 100, cash values must match the death benefit. So as you continue to put the premium in, the death benefits increase and when death benefit increases, the cash value increases. When cash value increase, the policy loan amount increases and cash values have to increase every day to match the death benefit by age 100. And you can see that happening on my screen. So let's look at a personal family bank. So this is an example of car financing. The car was purchased in October 2019. The price tag was the $35,000. That's what was required to buy the car. The policy with the family banking business was started in March 2017 because this particular family was looking ahead to 2019 and they said, well, we're going to need car by 2019. It's going to cost us $35,000. Okay, how much should I put into the system today to make sure I'm not just able to buy the car in 2019, but every seven years thereafter? Because their objective is to buy cars every seven years and have the money flow flowing towards them on those financing so that they can have cash confidence going forward for the other things that they can deploy capital for. Premium that they chose was 20,000 per year. Now that's what they wanted to get done because they were aggressive in capitalizing the policy back in 2017. Just the first year, when they had started the policy, the daily cash value growth was $12 per day. Again, how do we know what the daily cash value growth is? You look at the numbers. Today we look at the values. Next day, the difference is the daily growth. So cash values are growing every day to match the death benefit by each 100. So daily cash value growth was $12. The starting death benefit was $680,000. So cash value is growing to match that death benefit by age 100. So every day they wake up, the cash values increase, and Fast forward to 2019, October 2019, when they wanted to buy the car, they had about $48,635 in cash value. The daily cash value growth now in 2019 was $20 per day. So it started at $12 just in the first year, and then it became $20. The death benefit had increased to $750,000. And that's how policies are designed. Every year, the death benefit increases, which by virtue accelerates and pulls the cash value growth because the cash value has to master that benefit by age 100. So every day cash values increase. And because we increase the death benefit, every year, it pulls the cash value alongside. Now, the capital required to buy the car was 35,000. Cash value was 48,635. Again, the policy loan is a way to access money. It's one of the ways to access money, which is 90% of the cash value. And the policy was growing in value every day by $20. So they had two ways to access money. One is they could call the insurance company company and say, hey, I need $35,000 to buy the car. And they can literally withdraw 35,000 from the cash value to go buy the car. Insurance company will do that with some calculation in the back end. But if they use their own money to buy the car, then this $20 per day growth will be interrupted. No different than if you withdraw money from a bank checking account to go buy the car. Your car balance goes down. Same thing will happen here. The other way to access money was via policy loan, which is 43,777. They have more than enough money in the policy as a loan to go buy the car, which is $35,000. And policy loan is 90% of cash value. So if they access money as a policy loan, what insurance company would do is they'll use their cash value as collateral for the loan, meaning 4,377 or the 35,000, which. Well, that's the amount of money that they need to buy the car. So if they access $35,000 as a loan, 40th collateral for that loan is going to be the cash value, which is at 48,006, 35, meaning they cannot re access 35,000 off the 48,006, 35 until they repay the loan. But all the cash values would increase every day by $20. That was just back in 2019. As of today, the daily cash value growth is much higher because the death benefit has gone up. So they'll use the cash value as collateral for the loan and they'll put a lien on the death benefit, which is almost $750,000. So the key thing is the lien for the loan is the death benefit in this case. So when they receive 35,000 as a loan from the insurance company, they use their money to go buy the car. They own the car free and clear. The goods and services that we buy using policy loans will own those goods and services free and clear. There is no lien on those goods and services because the lien for the loan is future debt self our future death benefit. And if you use it as a loan, if you borrow money as a loan, all the cash values are still growing every day. Now here's what transpired. So they used policy loan 35,000 to buy the car. Objective accomplished back in 2019. Because it's a loan. That money is not their money. That money is insurance company's money which they lend against the cash values. The interest on that loan is 7%. So if you take 35,000 multiplied by 7% divided by 365, this is the daily interest, $6.70. But the daily growth in the policy is $20 a day. So Jason talked about the word recapture. So the family in this case just recaptured the interest charged by the insurance company in the growth of the policy. So financially they're ahead. And that's their financial tailwind. The daily cash value growth is the financial tailwind pushing ahead. Even after paying the interest, they're still financially ahead. And the interest that they're going to pay back is just going to add more profit to the insurance company, which is their company, because they own the company, which means them and anybody else who has a participating whole life policy will benefit from that interest because it adds to profitability, which adds to dividend. So you can see right here, we just created a financial tailwind. Does anyone know, know how much capital you will need or you will require for opportunities over your lifetime? Imagine you walk into a room and It's a nice clean steel room and you have shelves everywhere. And those shelves are full of money. You start using that money for the goods and services that you need, in the end that all that money is going to be gone. But if you're using that money for the goods and services that you need, but you also replenishing it on your terms, then shelves will never be empty, which means you will never run out of money, which means you will always be able to capitalize on your next opportunity. But if you just keep taking the money and keep spending it and you don't replenish it, then you're not going to have a business like this. After a few years, it's all going to be collapsing. So here's where we create cash confidence by financing things from our own family bank. So when we make a loan repayment of $500, in this case, the family decided they're going to pay back the loan, 500 bucks per month. They're paying the borrowed 35,000. The interest is 7%. It's going to take them seven years to pay off the loan. That's what worked with the schedule. So that's what they said. Now monthly cash value growth is $600. Because the cash value kept growing $20 in 2019. And let's assume there's 30, 30 days in a month. So 20 multiplied by 30 is $600. So that is the cash value growth. Because policy loan never interrupted that. The monthly interest is 201 because the daily interest was $6.70 in 30 days. This is the interest. So if you can see growth is 600, interest is 201. They're recapturing it. They're creating a financial tailwind. So they pay back 500 bucks. So 500 plus 600 minus 201. Because a portion of this loan repayment goes towards the interest, the other portion goes towards the principal. So 500 plus 600 minus 201 is 899. So again the question is, where else can you pay back 500 bucks and create access to 899? And when they did that, it created cash confidence for them. Because by putting the money back on the shelf, this is what they're creating, which means they can capitalize on more future opportunities. That's cash confidence. But they only did that when they created a business called banking using a participating dividend paying whole life policy which had certain attributes which allowed them to do all this. That because they were going to finance the car anyways, they just financed it differently. Using their own banking system, which is someone else's banking system. Now how would you feel when it comes to cash confidence if this was happening for you? For all the payments that you were making, you had access to more than those payments. How would you feel about that? Now this is bank going back to the same example. So we looked at all those payments and you're already making these payments. And before when you made these payments, the bank got all the money reduce your cash confidence. But now, because you're financing things in your family bank and you're still making payments, but all the money that would increase your cash confidence, your cash confidence will increase. Now everyone should be into business. Jason talked about that. One is what you do for work to earn income, you need to provide for your family and portion of the money should be used to create your banking system more the better. Isn't it true all your money is flowing to the books of someone else's bank? The bank sees your money before you do and you're okay with that. So why object to putting all your money into your banking system? It doesn't happen overnight. You have to work towards it and you need a coach to do that. So there's two businesses. One is what you do for work to earn income. The other is banking. And out of these two, banking is the most important one because it helps keep money in the family which creates cash confidence. When you become your own banker by creating your private family banking business, it's a stress free way of living. And the reason why? Because it boosts cash confidence. Have you seen a boomerang? Well, what happens when you throw a boomerang? If you do it this the right way, with a lot of practice, it'll come back to you. So create a boomerang plan for your money so that as you use it, you have a plan for having the money coming back to you so that you can keep recycling it over and over again. But it can only happen if, if you're doing it through the process of becoming a banker, create a money motion plan, not a money plan and have the money motion coming towards you, not away from you. Creating a family banking system needs understanding. Have no doubts about it. That's what you're doing today. You are gaining education and understanding. It requires discipline to implement the idea and it certainly requires coaching. But it can certainly change your life dramatically because it creates cash confidence and it can change your life even beyond your financial fondest dreams. So here's what's required to get started. All you got to do is text the wood schedule to the phone number 780-809-4599 and here's what you can expect as a follow up. We'll stay in touch via email and you can unscript subscribe at any time. So step one is going to be once you text the WOOD schedule to the phone number you are going to be invited to schedule your becoming your banker call which is 15 to 30 minutes. It's just about getting to know each other. See if you can add value to what you you are already presently doing. Personally haven't met any individual who cannot implement this process. Everybody can implement this process. It's just about making sure that you truly are there in terms of understanding to implement the process. So book that call. It's 30 minutes. Just meet and greet. We would certainly advise you to read Nelson's book. And then after that we will book two meetings and we call those meetings the infinite banking meetings. Each meeting is about 60 minutes and in the first meeting we'll dive into understanding, understanding some of the questions that you have, making sure that you have clarity. We'll also understand what are you doing today financially, what are your financial goals so that we understand where you are financially, where you need to go. And then in the second meeting we'll walk you through what your family banking business will look like and how you're going to use it going forward and most importantly how we're going to work with you going forward. So that's the second step. The third step is we will get you through the underwriting process. Because until and unless we go through the underwriting process as we used a lot life insurance tool, it's just a moot point. We have to complete the underwriting process. So we do the application, we do the underwriting. Once the policy is approved, we settle the policy and then way we go immediately we create a client onboarding meeting where we walk you through your portal. You'll see your cash value is growing every single day. We'll execute on the plan that we have put in place on in terms of using your family bank. It's going to work right away. You don't have to wait months or years to get started. It's going to work right away. And then part of a process is to just check in every six months, see how things are. We like to stay in touch. Coaching is very important for us. So we do one on one coaching but we also do quarterly group client coaching session. We pick a topic, we get feedback from our clients, what's on top of their mind that they want us to coach on. So we bring everybody together and we do a couple of hours coaching session. So that's quarterly and it's recorded and everything that we do for clients is recorded and posted in a client exclusive portal which is available to all clients 24, 7, 365. You will get your unique user ID and password to log in and watch all that content. All frequently asked questions on how to get a policy loan, how do I repay policy loan, how do we change beneficiaries, etc. All that is already posted in the client portal. So here's the next step. Take action. Text the Wood Schedule to the phone number 780-809-4599 and book your becoming your banker. Call and let's get started. Let's see how we can add value to what you want to do using your family bank.