Becoming Your Own Banker | Debt Recapture

Don't change your goals, don't change your cash flow, but change the process. Take your money, put that into your system, become your banker first, and then use your system to deploy the capital. This way you're able to achieve the things that you want to achieve, buy the things that you want to buy without changing any cash flow. But you end up creating a financial tailwind which is going to push you ahead better than what you presently are doing financially. Process of becoming a banker is not about changing goals, changing cash flow. It's about enhancing everything that you're doing today financially. So super excited to share this strategy. This strategy, I can't even remember, like how many hundreds of clients that we've helped successfully implement this strategy for. And this is primarily the reason why clients come to us. That's the essence of becoming your own banker is to be in a position where you can control and own all of your debt. So foundation is going to be understanding becoming your own banker, why you should become your own banker. Because we're going to use the process of becoming a banker to eliminate debt. You're going to hear me use the word recapture a lot today, and you're going to have clarity today, the importance of recapture as it relates to building wealth. And then we're going to do a case study on debt recapture. Debt recapture is not debt elimination. People don't come to us to eliminate debt. People come to us to build wealth while eliminating debt. And then we're going to show some client testimonials, folks who have implemented the process of becoming a banker and they now use the process towards recapturing debt. So we've selected some of the testimonials. We're going to do group Q and A and then we're going to show some action steps for you to implement your own debt recapture plan. Now, when you become your own banker, you will radically enhance anything that you do financially, whether you are eliminating debt. Today we're going to talk about debt recapture. Whether you're investing in real estate or other alternate investments, whether you're growing business, you want to send kids to college, to education, you're setting aside monies for emergency funds, you're financing cars or any sort of equipment that you need for yourself personally or for your business, if you want to learn how to keep taxes away from wealth, estate planning, if you want to talk about intergenerational transfer of wealth or keeping money in the family, and the list goes on and on. It doesn't matter what you are doing presently financially or what you want to do financially going forward, by implementing the process of becoming a banker, you're going to radically improve the outcome of the objective. We're not going to talk about changing goals, we're not going to talk about changing cash flow. We're just going to talk about enhancing everything that you do today financially. Now, there's so much that can be done through the process of becoming a banker. And that's the reason why Nelson called it the infinite banking concept. Because you just cannot put boundaries around infinite. Diving into understanding the foundation of becoming a banker. And before we dive into that, it's important to understand one basic principle. The very first principle that must be understood is that you finance everything that you buy. You, you're either paying interest to someone else. So when you borrowed money from someone else and now you have to make payments back to that entity, that business, that person, well, that's financing, you're financing that transaction, while the other way is you give up the interest that you could have earned when you pay cash. So when you pay cash for things, you're not just paying cash, you're making a financial decision. The decision is not to earn interest on that money ever again. So whether you borrow money and pay interest, or use your cash and buy things, you're losing interest. Either ways you are making a financing decision, you're either paying interest or you're giving up the opportunity to earn interest. It doesn't matter which of these methods you adopt. You're not just permanently transferring your money away from you, but the opportunity of reusing that money is also permanently lost. And this can be avoided by the process of becoming your banker. When you get paid, whether it's active income, whether it's passive income, it's just source of money is coming to you. Where does the money go first? And if you're thinking about it and you think bank, you're absolutely right. That's where the money go for us. It goes into your checking account. Isn't it interesting that the bank sees your money before you see your money? And once the money's in the bank, you use the money to buy the things that you need to make purchases using payment methods which are financing, or you use cash to buy those things. So you are doing all the work to earn that money because you put in the time to earn the money, you put in the time to buy those investments. But by the end of the month, everyone else has received all your money. And that's a problem that we can fix by implementing the process of becoming a banker. The Solution is becoming a banker. Now, we're going to compare two scenarios. Now, the old way versus the new way. Old way is the traditional ways that you're already familiar with paying cash, borrowing money. The new way is the process of becoming a banker. Because once we compare, that's when we can make an intelligent decision. Yes, we are making progress because we have something to compete against. So the old way is you are either borrowing money which is paying interest, or you're using cash to buy the things that you need, which is giving up interest. So that's the old method of financing. The new method of financing is becoming your own banker. And this method works in building wealth and enhancing everything that you do financially going forward for whatever you need money for, because it helps you recapture the interest. You will have full clarity on recapture interest and its importance in building wealth or creating abundance for yourself. So this one slide is basically I've taken this from Nelson's book titled Becoming a Banker. It's from page 17. So let's talk about a family is making maybe 28,000 to $30,000 in income. So the family has a car payment and 20% of whatever they make. So if they earn $1, 20% of that dollar is going towards car payment. Now they have a mortgage and 30% of whatever they make goes towards mortgage. They have living expenses, food, clothes, boat payments, credit card payments, line of credit payments, and all that combined becomes 40% living expenses, the biggest expense that we have on a monthly basis. Now the family is actually setting aside 10% of whatever they make as savings. In reality, most families are not even saving 10%. It's a much lower number. And that's an issue by itself. Now if you look at the red bars, the red bars represent is the interest volume that the family is paying on those things that they are financing. It's not the rate of interest. So when you look at this mortgage, it's not that the mortgage interest rate is 25%. What it means is if the total payment is this, this is the interest portion of that payment. So if 30 cents of every dollar that they earn is going towards mortgage payment out of that dollar, 25 is actually the interest payment of the mortgage. And then you can see the interest payment on the car. So interest volume on the car, which is 5% interest volume on the lines of credit, car payments, et cetera, is also 5%. Now if I add up all these interest volumes, which is the physical dollar in interest paid in those transactions. So five plus 25 plus another five, this comes to about 35% now the family is saving about 10%. So when we save money, that's a decision to make financial progress. Because once we have saving, we can go put that money to work and grow wealth. So if you look at what truly is happening, for every dollar they earn, 10% is safe. That's one step forward. For every dollar they earn, about 35% is just going in interest payments per year. That's three and a half steps backward. So if they operate in the environment in which they're operating, how are they literally making financial progress? Now if they take this 10% saving and go invest it in anything, doesn't matter what they invest in, let's just say they get 100% rate of return in the investment. So now they have taken that 10%. And because they 100% now that 10% becomes 20%, which is fantastic. But 35% is still interest payment per year. So how is that progress even after getting 100% rate of return on investments? One thing that I have realized after reading Nelson's book, and I have read it so many times, one thing that connected with me is we can't get a better rate of return investing into anything without us controlling how we go about financing the things that we need in life. And we can certainly control the financing on the investment also. So 10% saving is one step forward. 35% in interest payments is three and a half steps back. But if they continue to operate in this environment, they are not going to make financial progress. So Edmonton is north compared to Calgary. Calgary is on south side of Alberta, Edmonton is on the north side. Now let's say we are in Calgary today and we have to hop on an airplane to head to Edmonton. So Calgary, basically what it represents is it represents our financial position where we today are financially. So Calgary is where we stand today. And Edmonton, what it represents is where we want to be financially, which is the future that we have to build financially, where we want to be financially. Now, what that hundred miles per hour represents is it represents the 10% saving. When they go up in the air, they are faced with a headwind of 350 miles per hour. And that 350 miles per hour represents the 35 interest payments that they have to make on the things that they finance. If they're in Calgary, the financial destination is Edmonton and they're operating against a strong financial headwind. You'd think they're actually going to make it to their financial destination. No, they're probably going to go backwards, end up in Mexico. Which will be great for location but financially it's just not progress. So this is where we are paying interest. This is where we are working towards a headwind of interest volume and then we're not making any progress. So this represents paying interest. Now here's another way to look at it. Now have you guys seen a pendrow stairs? So this is exactly what the scenario looks like. When we are on a penrose stairs we can see the steps or stairs in front of us and we think that we are actually going up and we're making progress but we just keep going back in circles. That's exactly what's happening when we keep working towards a financial headwind of interest volume. Well, here's another way to describe it. Or trying to get up to escalator which is coming downwards. Here's scenario two where we still in Calgary and we're going to get to Edmonton and we are flying at 100mph but there is no headwind which means we are going to get to Edmonton. But the speed that we're going to get to Edmonton is 100 miles per hour. That's the speed at which we can save money. Remember this 100 miles per hour represents a 10% saving. That's an opportunity cost right there. Because when we save up cash for the things that we need and we use our cash to buy the things that we need. Yes we'll accomplish the objective of buying things. There is no financial headwind because we don't have to pay interest to anybody. But then how much interest we are actually earning on using cash. So I call that losing interest method. Paying cash is this guy who's trying to get up the staircase which is the financial staircase. He will or she will get up the financial staircase. But the speed at which they can get up the financial staircase is the speed at which they can save money. The third method is the method where we still fly to Edmonton. So we haven't changed where we are which is Calgary. Calgary is where we stand financially. So we haven't changed our financial situation. We haven't changed our goals. We still fly to Edmonton but now that we help on the airplane we're flying at 100 miles per hour because the interest is now working in our favor. We have a financial tailwind of 350mph which is the interest volume which was initially working against us. Now it's working in a favor because we have the wind behind us. We are certainly going to get to Edmonton in a much quicker position. Now if the interest is Working in a favor. And I call this the recapture interest method, which is the process of becoming a banker. Now in this situation, if you think about this, 100 miles per hour is the rate at which we can save. Now if this reduces, because life happens, health changes, whatever happens, we still have the interest volume pushing us ahead financially. So no matter what, we will still make progress if we are working in an environment in which we are recapturing interest, meaning the interest is working for us. And when I talk about more of that with the implementation of the process of becoming a banker, because that process enables us to recapture the interest which is basically creating a financial tailwind. And that's what it looks like. If I was to show this. Conceptually, it's like getting on an escalator which is moving up. And even if you're not stepping up on the escalator, it's still going to take you up financially. If you change your behavior, you actually take steps on the escalator, you will quickly go up to your financial destination. But even if you don't take any physical steps upwards escalator will still push you ahead. Now have the interest on things you finance work for you versus against you. Or in other words, become a banker and have the banking function work for you versus against you. Now we talked about all the things that you may be presently doing financially and this is you on the left hand side. So rather than taking all your cash and buying all these things and using your money for all these things, don't change your goals. These goals are important. Don't change your cash flow, but change the process. Take your money, put that into your system, become your banker first, and then use your system to deploy the capital. This way you're able to achieve the things that you want to achieve, buy the things that you want to buy without changing any cash flow. But you end up creating a financial tailwind which is going to push you ahead better than what you're presently doing financially. Process of becoming a banker is not about changing goals, changing cash flow, it's about enhancing everything that you're doing to do financially. So we need a tool to implement a concept. We need a tool to implement a financial strategy. The tool that we use to implement this process is called participating dividend paying whole life insurance. The reason why we use this tool is because this is the perfect tool that has all the attributes which are required to recapture the interest. Now we've been doing this for over a decade, more than 15 years, but we haven't found anything else in the Marketplace which can actually replace the attributes that are required to implement this process. This is the tool which gets the job done in the most effective way. That's where we use it. So create financial tailwind by recapturing the interest using participating dividend paying cold like policy, the tool and the process of becoming a banker are just two different things. Your checking account is a tool to buy the things that you need. Participating dividend paying whole life policy is a tool that's required to finance the things that you need as becoming your own banker. Now let's understand the tool. So participating dividend paying whole life insurance. So there's two components. There's premium, now it's life insurance. So life insurance, you can only put money into life insurance via a premium. Premium is what you want it to be because we are implementing a process called becoming your own banker. You are becoming your own banker. So when you walk into a bank today, you decide how much money you want to put into the bank. The bank doesn't tell you how much money you should be putting in. So no different than that, you decide how much the premium is the more you put into premium. Because premium is how you deposit into your banking system via premium payments. The more you put into premium, the more it creates. Premium is not the problem. Premium is the solution to the problem. It's not about how much least I can put into this. No, no, it's about how much more I can put into it. Because premium is a solution, not problem. Premium is. We also call it capitalization. You know, the more you put, the more you get. And capitalization has to be very, very intentional. Isn't it true today that all your income is flowing to the books of someone else's bank and you're okay with that. But if you create your own banking system, should you not be putting all the money into your own banking system? Something to think about. Death benefit. So again, it's life insurance. There is death benefit aspect. Now death benefit is received tax free by the name beneficiary upon the death of life insured. Financial planning or wealth planning, whatever you want to call it, will be so much easier if you just know the day, the month, the year that we are actually going to leave this planet. Become an angel. And then we can just work backwards and plan while nobody has a lease on life. We don't know how much more days, months, years we have on planet, but we know for sure that one day we are going to pass away. Which means that benefit will be paid no matter what. And it is Paid tax free. Cash value is the third component. Cash value is your capital that you can use while you are alive. That benefit is the capital the that you leave behind for the family when you're gone. Now your capital called cash values grows daily. The contractual guarantees in this policy contract, and one of the contractual guarantees is the total cash value of the policy must equal the total death benefit by age 100. The cash values grow tax free. Cash value is not money. You know, one of the questions that I get asked is okay, how much money I have in the policy? While cash value is capital. Now the last component is dividend. Now when we have a participating dividend paying hold like policy, we just don't own a policy contract. We actually co own the insurance company. And because we co own the insurance company, when insurance company which is a business and when business becomes profitable, they pay dividends to owners of the business. So we share in that profit too. We get the dividends too. Dividends is your share of divisible profit. The more you put as premium, the more ownership share you have in the business. It's all tied directly based on contribution principle. We touched base on that. Now the way we structure policies is in a way that your dividend as you receive it will always be tax free. So that benefit is paid tax free. Cash value growth is tax free. Dividend, when it gets paid based on how we structured it is going to be tax free. Now when taxes go up, tax free becomes even more valuable. The policy is not designed to maximize your profits from the insurance company as dividends. That's not how we design policies. In fact, that may not be the best way to design a policy. The policy is designed to maximize your behavior and your behavior is your premium. We want to give the control in your hands, not in the hands of the insurance company. So your behavior, meaning your premium, would have a direct and bigger impact on growing your system versus the dividend. Let's just agree that your money needs to sit somewhere. Your money needs a warehouse. There's another wonderful book authored by Arnold Sinache. It's called building your warehouse of wealth. Must read. Highly recommended. Your money needs a warehouse. If your money is in your pocket, in your wallet, it's a warehouse. That's basically what it is. Money has to sit somewhere. It needs a warehouse. Now if you can warehouse money in an entity where your capital can never reduce in value, where it grows on daily basis, contractually guaranteed, where financial turmoil in the marketplace cannot impact it negatively, where all growth is tax free, where it's readily Available to access capital, to capitalize on opportunities. How much of your money you don't want residing in an entity like that? We want to put all our money in it. Those are the attributes of a participating dividend bidding whole life policy. Now, family banking is the theme here because it's not about doing a policy, it's about creating a system of policies going forward. Because one policy just cannot get the job done. When you start practicing the concept, you will expand your system of policies. It happens, it happens all the time. Family income after living expense should go into system of policies. And all those policies are part of family bank. When premium goes into policies, it does one thing and one thing alone. It buys death benefit which is paid tax free upon the death of life insured. Because we buy death benefit in a policy like this, death benefit creates access to capital called cash value. Now, cash value is going to grow every day to master death benefit by age 100. The other thing that we get access to is policy loan. Policy loan is 90% of cash value. So when an opportunity comes up for us to deploy capital, we want to use policy loans. We never want to interrupt the growth of our cash value. Let the cash value grow every day to match the death benefit by age 100. Let's borrow against it. So every single day as we age, because cash values must match the death benefit by age 100, the cash values will keep increasing, which will keep giving access to more policy loans. And, and that phenomena continues all the time. And the way we design policies is your death benefit would increase in value once a year. So when death benefit increases in value, it's going to create more cash value growth in the system for us. So cash values must grow every day to match the death benefit by age 100. Now a few points to note. If the stock market jumps off the mountain Everest tomorrow and commits a suicide, the cash value will still increase. So if the stock market goes up, cash values go up. If the stock market goes down, cash values will still go up. Because what happens in the financial market doesn't impact the contractual guarantee in the policy. Crypto goes up, cash value go up, crypto goes down, cash value go up. Cash values have nothing to do with crypto. Interest rates go up, cash values will go up, dividends will go up, interest rates go down, cash value will still go up, cash value goes up. Because of contractual guarantees, which is by age 100, cash value must match the death benefit. You don't have to lift till age 100 to make sure that happens. You just have to Age every day, which you're going to do it anyways. So as you're aging, grow your pool of capital. Now here's a case study on debt recapture. So meet family. So, husband, his name is Glenn. He's 48 years young. He's in IT sales, makes about $160,000 per year as income. Now, his wife Sheila, she's 45, works in the bank and her income is $120,000 per year. Now, Sheila is in a unique situation based on certain things that she does. She's also entitled to bonuses, which is about 20,000 dol per year. And Sheila has been receiving that bonus for quite some time now. Now, here are the debts. There's a mortgage. The balance is $650,000 on the mortgage. The payment that they're making on the mortgage is 4,000amonth. Now, the fair market value of the house is a million bucks. Now, they have a line of credit debt of $50,000. The interest rate is 10%, and they're presently only making a minimum payment of 420 per month. Now, Glenn has a car balance. The car value, the balance is $50,000. The interest rate that he has in the car is 4.45%. The payment is $700 a month, and he's got seven years to go. Sheila has a car balance of $10,000. It was a 0% financing. Her payment is 500 bucks per month and she's got 1.6 years to go. They also have combined credit card debt of $10,000 at 21%, and they're just making interest payments of 175amonth. So that's basically what they have for debt right? Now, it amazes me when someone has a 0% interest on car financing. Like there's no such thing as 0%. Right. The interest is actually built into the car without the mortgage. So let's separate the mortgage from the remaining debt. Line of credit balance, 50K. Glencard, 50K. Sheila, car balance, 10K, credit card, 10K. You can see the interest, the minimum payments, and the remaining amortization. Total debt without the mortgage is $120,000 in total payments per month is 1795 per month. On the cars, the lines of credit, the credit cards, all combined. Here's a question for you. Who owns the debt? Is it the family or the banker? The banker, of course. Now, who controls the debt? Is it the family or the banker? Well, of course, the banker. Now who gets to reuse all the debt payments, the 1795 payments per month that the Family is making. Who is using or reusing all those payments is the family or the banker? If you guess banker, you're right. Now who is doing all the work to actually earn the money to pay down the debt? Is it the family or is it the banker? Well, in this case, it's the family. Family is doing all the work to earn money to pay down the debt. But on whose balance sheet are the debt payments? Assets? You guessed it, banker. You're right. It's liability for the family, but it's asset for the banker. Now who comes out ahead financially on those transactions? It's the banker. The banker always wins. Your debt payments today are someone else's passive income. So here's another way to look at it. You may have a car payment, you may have a house payment, you have appliances payment, house remodel payment, furniture payment, credit card payment, vacation payment, investment payment. All those payments are someone else's passive income, AKA the bank. The whole idea is to get the bank out of the way and for you to become your own bank. This way. All those payments now become your assets. Presently they are working against you because they're liabilities. If you want to convert your assets to liabilities, control the stream of payments coming towards you versus away from you. Now here's a question for you. Is there anything wrong in becoming a banker? And the best kind of banker is you becoming your own banker using the infinite banking concept. Now let's go back to the debts. So these are the debts. We have the lines of credit. We got CAR one, call it car two. And then credit card debts. You can see the interest payments, you can see the monthly payments, you can see the amortization. Which of these debts they should target first? So what should be the sequence of debt paid out? Well, the correct answer is cdba. And how do I determine that? I didn't just get this out of Tenair. There's a strategic tactical reason behind how do we determine cdba. If you're not familiar with this formula, it's called Cash Flow Index. So we don't make a decision on paying down debt based on balance, interest rates, payments. There's a formula that we use and the formula is Cash Flow Index. What? Cash Flow Index is a number. A number is generated. If you take your loan balance and you divide it by the minimum monthly payment that you have on the debt, it's going to spit out a number. And that number is Cash flow index. And once we have that number for all the debts, and then you use this chart. If the number the cash flow index is less than 50. That's the least efficient debt and that's the one that you have to target first. So if your cash flow index number is 20 on one debt and 30 on the other, well you have to start targeting the 21st and then 30. But if the cash flow index number is 120, let's just say, well then that debt is efficient debt and that should be paid off later on. So we work backwards from left all the way to the right. So there's a method behind our madness and that's basically the process that we follow now based on the cash flow index number. So on the right hand side, these are the numbers. The least number was the car two, which is number 20, then it's 57 which is the credit card, then 71 which is car one and then it's the line of credit 119. So basically car two will be paid off first and then credit card debt and then the CAR one and then the line of credit. That's the order and that's how it's determined using cash flow index. Sheila's annual bonus is $20,000. And then that's what they've been using to accelerate the debt payoff. We're going to take this $20,000, which we did, we took the $20,000 for Sheila and we implemented the debt recapture. So that 20k went in as premium quote unquote deposit into her family bank which is the participating dividend paying whole life policy. So that's where they both got started. Now presently Glenn has a life insurance of $1.5 million as a term life insurance. So he has life insurance, but Sheila had no life insurance. So it just made sense to take that 20k for family banking and actually start a policy on Sheila so that we can also get Sheila insured. And that's exactly what we did. So for Sheila, the premium deposit is $20,000 per year. Our objective is to do one thing and one thing alone is to design a system which gives us the more access to capital so that we can use more out of the system to do the things that we want to do with the capital to achieve that outcome. You can see her minimum required premium is 4819 on the policy. The difference between $20,000 and $4819. That's optional, that's not required. Most companies call it deposit option. But that capital is key in capitalizing the policies to get the policy to the stage where for every dollar they put in this premium, they Actually get back more than a dollar back. Her starting debt benefit is $400,000. And I say starting that benefit because you're going to see that the death benefit will keep increasing every year going forward. Her estate protection, her family protection will keep increasing, which is the death benefit. And because the death benefit keeps increasing, it's going to keep growing more and more cash values. Now, this is her system, her policy. So the first column is here. You can see here, 1, 2, 3, her age, cash premium, annual dividend, cash value and death benefit. Now you can see her starting death benefit was $400,000. But every year going forward, you can see the death benefit is increasing in value. So when death benefit increases in value, you can see the second last column is total cash value. The total cash value is also growing and accumulating. And the reason why the cash value is growing is because cash value is chasing the death benefit. Total cash values must match total death benefit by age 100. The more we increase in death benefit, the more we have by proxy increase in cash value. The more we increase in death benefit, the more we get also in dividends. So dividends, cash value, death benefit will increase, but the only thing that will Never increase is $20,000. So five, six, seven years from today, inflation hits 20, 30%. And now insurance companies like, well, it's costing us more to run our operations. They cannot go back to Sheila to offset the same benefits that we promised. Now you have to put more premium in. That just cannot happen. The premium cannot increase. Premium can go down. It just cannot increase. Now something happens in terms of capitalization between year two and three. So I have selected year three. She puts 20k in premium. You can see the cash value growth from year two to year three is $21,603. So we start building momentum right at year three mark. Now let's see what happens with capitalization and power of compounding. Between year 5 and 6, she puts 20k as premium. In year 5, her cash growth is 24,393. From year 5 to year 6. Let's pick another year between year 8 and 9. So year 8, she puts $20,000 as premium. Her cash growth from year 8 to year 9 is $27,986. Do you see the pattern of what's happening? The compounding is happening. Now ask yourself this question. How much risk Sheila actually has to make sure that her cash values keep increasing all day long? Well, who is contractually guaranteeing the cash value growth? Is it Sheila? Is it the Insurance company. Sheila's sole obligation is to just be an honest banker and capitalize her bank. No different than how she has been capitalizing someone else's bank. So continue to put the money in an insurance company will continue to fulfill all the contractual guarantees. All the cash value growth is tax free. That's the benefit payout when that happens, tax free. Dividend is tax free. And all this cash value is her capital. And she can access this capital at any time. Now something also happens at year 9. You can see at year 9 her dividend is 5318. Now her minimum required premium on the policy is 4819. She has the option to put 20k, but her minimum required is 4819. So if she wanted to, which she wouldn't, she has a choice. If she wanted to, she can offset the policy at year nine because dividend is more than enough to cover the minimum premium. And the policy will still grow and compound. No extra capital will come from her pocket, but the policy will still grow and compound. Here's another fact. Nine years from today, Sheila is going to be 53. There is no arguing that, There is no debating. Now if she puts 20k at age 53 through a commercial bank checking account, she can only use $20,000 of that money over the year. But if she puts $20,000 in the policy, she gets to use 27,986 just from the growth based on the 20k that she put in. Does Sheila want to be age 53 with the policy or without the policy? Because she has a choice. Right? Total debt without mortgage is $120,000. Now one thing that we can do today is we can backday setting up our banking system 364 days. So they backdated the policy by 364 days, they put in the 40k. So premium for last year, premium for this year immediately her cash values were 30,817. Now how do I know all this? Because being the advisor and the coach for her on this case, I can actually log into her portal and see what her cash values are. She can see it too. Now the other thing that we can also see is that her Policy loan available is 27,735. Policy loan is insurance company's money which they're willing to lend against her cash values. And the loan to value is 90%. So she has a choice. If she needs access to capital, she can call the insurance company. And there's a way to do this in the back end. Where she can take her cash values out. Or she has a choice. She can keep her cash flows in the policy and it'll grow every single day. And instead of using her capital interrupting the compounding, she actually gets to borrow insurance company's money as a loan. Daily cash value growth is $10 a day. So daily cash value growth is $10 per day. That's happening. Policy loan interest. So if she accesses all that money as a loan, which she did, the interest charge is 6.25%. The daily interest on policy loan is $4.74. Here's the summary. So daily cash value growth is $10 per day. Daily interest in policy loans is $4.74. And here's how the daily interest is calculated. You take your policy loan amount, how much you need, multiply it by 6.2% divided by 365. That is daily interest. If you see what is happening in the transaction here, her daily growth is $10, but the daily interest charges $4.74. And this is where the recapture of the interest is happening. Because Sheila just recaptured the interest charged by the insurance company in the growth of her policy. She has a financial tailwind which is pushing her head financially. Yes, she's got interest, she's got to pay back principal and interest on her terms, but she's accumulating the cash flow growth no matter what. Now we talked about policy loan, how to get a policy loan. So tactical order. So this is the order that we're going to attack the debt. So the car two goes first, then the credit card, then the car one and then line of credit. When Glenn and Sheila started implementing the process, they started taking policy loans to pay off the debt. They decided not to pay the policy loans back until the debts were paid down. It was their decision. They wanted to be just laser focused on paying off debt and eliminating so called the snakes and dragons. That's what Nelson called them, the third party creditors, Snakes and dragons. So they wanted to fire the snakes and dragons from their life and then they wanted to repay the loans back to the system because they want to be an honest banker. This is the debt recapture plan for Glenn and Sheila. So you can see there's months which will track how many months it's going to take for them to pay off the loan. There's premium, there's policy loans. So again they backdated the policy. So immediately they have a policy loan of 27,735. So as they're using insurance companies money, their money is still growing. Right. But let's go through the debt. So you can see I got all the debt types here. The car to the credit card, car one and line of credit. And then you can see the balances on all of these creditors and the interest rates that they are charging and the payments that they're presently making on all those debts. Now let's begin. So let's implement the debt recapture plan. Again. It's recapture because as their policy grows or as they take policy loans, the policy still grows. So they're recapturing the interest, but they're also going to recapture the stream of payments later on once these debts are paid off, once the snakes and dragons are paid off. So they put 40k in, they take out a policy loan for $27,000 right away. Now immediately what they do with this $27,000 is. So this is the money right here which is accessible, which comes from here. They're going to take that money and immediately pay off the car due and the credit card. The balance on this command is $20,000. They have 27,000 to access. They pay these off and the remaining gets applied towards the car loan. So you can see sudden drop in the car loan balance. That's when the remainder of the money went. They're organically paying down the car because they cannot call the car company and say hey I want to take a vacation. They have the obligation to pay it down. So you can see organically that car debt being paid down. Now the line of credit, all they're doing is paying the interest only. So the balance is not getting paid down. They're just maintaining the balance, paying the interest only. Once the first two debts are paid off. These pay of 500 bucks and $175. The creditor doesn't need that money anymore because the debts were paid off. Now they used insurance companies money to pay off the debt. So they're paying down the debt while still maintaining net worth growth. That's called recapture. They're recapturing all that in the growth. Both These payments combined are 675. So they have a segregated account. This is an account that we encourage folks should create in a bank. It's a separate account. It doesn't get commingled with day to day expenses. And this is where they are saving these payments. So you can see the payments are piling up. And by the end of first year, April 2024. So next year the policy got started April. So again they backdated the policy by one year to put 20k for last year, 20k for this year that's 40k in premium. But for next year they just put 20k in because that's the premium. Every year it gives them access to 17,385 as policy loans. They take these policy loans added to the segregated account balance. The total that they can now access is 25,485. Now they take all that 25,485 and they apply that toward the car loan balance. The car loan has been coming down because they've been organically paying it down. So by the end of the year they're able to now pay down the car loan balance by 25,485 using insurance companies money. And then the balance that they own the car is $8,411. While this time the cash flow is growing. So they're building cash value growth, which is positive net worth. But they're reducing third party debt. So building wealth while paying off debt. Now they continue to make those car loan payments. You can see organically they're paying it down. By month 19 they have saved enough money in the segregated account to actually pay off the car loan. Because the car loan balance organ, it got reduced to 3,529. 19 months in, they've paid off three debts and the combined value of three debts is 10 plus 10 plus 50. That's $70,000. 19 months in and three debts are paid off while the cash values are growing. How are they doing so far? So they keep setting money aside into a separate segregated account. No different than how they were doing. They didn't change their behavior. That's happening. So their behavior is critical in making progress. By April 2025, 24 months in, they put another premium 20K. And now they get access to 19,265. You can see previous year the access was 17,385 and now the access is more. You can see the policy is getting better and better. So building more and more networks. And then they take what they can from the policy, add it to the segregated account and now they can access 26,140. And then they take that money and apply that towards the line of credit. Because the only thing that's left is line of credit. So line of credit went down and this is in 24 months they still owe a portion on the line of credit. So they continue to set aside monies in segregated account. That's happening because what's happening is they have the payments freed up from the cars and the Credit cards. But as they're paying down the line of credit, the interest payment that they owe on towards the bank is also reducing. So whatever they save on the interest payments, they're just putting it right back into segregated account. April 2026, they put another premium. This is how much they've saved in the segregated account. This is the policy loan available combined is 38,976. But the line of credit balance is only $22,000. So there's more than enough money to actually pay off the line of credit completely. So in a matter of three years, they have paid off 120,000 in debt. The bank is paid off, Snakes and Dragons are gone and all these payments are now going to be recaptured into this system. And as they paid off the debt, all the cash value kept growing. Now Sheila lives a long life. They're going to have access to a lot of capital to buy and finance the things that they need. But God forbid, if Sheila becomes an angel sooner than later, then the family will still have not a bad financial year because the death benefit will be paid tax free. So Snakes and dragons eliminated in 36 months a total debt of $120,000. Gone in 36 months. If they just stop at paying off debt, if they just stop right here, they will miss the most important step in wealth building. They need to replenish the pool of capital that they have taken from the policies which is called recapture of payments. Now, now why should they recapture the payments? Because insurance company is not going to call for policy loan repayments. If they have any loans outstanding, it'll just be deducted from death benefit. Well, here's the benefit in paying back the loans. Now if you only take monies out from your banking system and you don't replenish it, you just are going to run out of money. So be an honest banker and replenish the money. And here's another reason why you should replenish it. How much money do you think you need over your remaining lifetime? It's hard to put a number on how much more capital do we need? We have no idea. But if you just keep taking money out and we don't put money back in, we are certainly never going to have any more money left. So policy loan balance. So here's how much they took out as a policy loan to pay off 120k in debt. Now interest on policy loan is 3,387. Because they didn't pay any policy loans back over the 36 month period, they were just Focused on eliminating the snakes and dragons. So total loan balance is 87,475. So which is a combination of these two. Now, cash flow in hand is 1795, because those were the payments that they were actually making to someone else's bank. So if they had no objection on paying someone else's bank, why should they object to pay their bank? This payment is now their asset because it's coming back to the system. Before it was leaving them to someone else's bank, it was a liability. This is the best thing they can do, is to convert those liabilities into asset because the asset is a stream of payment. So it'll take them about 4.5 years to pay off the policy. Loan from start to end, $120,000 in debt eliminated and money recaptured in 7.5 years. And if you see what happens in the policy, so, you know, seven and a half years, they got all the money back. And now you look in between year eight and nine, the cash growth from year eight to year nine is 27,986. So here's what happened. They build an asset 27,986, because the premium is 20k, they put 20k, they get more than the money out and the debt is paid off and they have the death benefit and they got access to more capital to do more great things with it. The value is not in eliminating the debt. The value is in recapturing the debt. But recapturing is fun and easy when you become your own banker, because now you have total and absolute control. You decide how much to pay back, when to pay back. You can take a vacation from your payments, but if you owe money to someone else, you can't take a vacation. You can't call the bank and say, hey, I would like to take a vacation on my payment. They don't care. But when you're the banker, you decide that. So when they started the process, yes, they had some net worth in the house, but I'm just talking about net worth from the function called banking. So the net worth was just starting to build, but this red bar was a joint debt that they had. So as I started implementing the process, you can see the cash values kept growing. The net worth just kept getting bigger and bigger, but the debts just kept going down. So what do they have now? They have less stress because they don't owe money to anybody else but their system. And the cash flows are growing, their dividends are growing. The death benefit is there. So less stress because they have full control. Next is more control. Because being in total and absolute control is only possible financially when you are in a position of controlling and owning debt. Monthly cash flow from payments. So 1795 is extra money. Here's what they're going to do. They're going to take that money and crank up more policies. Cash value growth compounding annually for rest of their life. It was annual cash value growth between year eight and nine was 27,986. It's just going to get better every year going forward. Death benefit reached to 80 868,330 started at $400,000. So God forbid she becomes an angel. There's more money coming back to family, access to more capital growing daily. So at year 8 this is how much she has access to cash value. If she now wants to start targeting paying down mortgage or using this for buying real estate investments or anything that she wants, she actually has more money than what she started at. And all the debts are also paid off. And by the way, policy loans are private between you and the insurance company, nobody actually knows you have a loan outstanding. And her net worth also increased which is they created an asset policy while the debt were paid off. So that's the basic method, that's the basic use. Now I'm going to quickly go over the advanced use of the system in advance. Just needs more planning, more discipline. They have a mortgage balance of 650,000. When they started it, the fair market for in the house was a million bucks. And these were all the debt balances, these are all the payments. So all the Debt balances were 120,000 minus the mortgage. And if they add up all the payments, it's 1795amonth. Now that house is sitting, building equity. Now we can't take the house to heaven. If the mortgage is 650 on the house and free market value is a million bucks, can they register a line of credit on the property equal to the debt balance of $120,000? So yes, that's exactly what they did. That's the advanced method. So to register a HELOC home equity line of credit on the property 120k. Now HELOC interest is 7.25%. But HELOC is in trust only payments. So if they move all these debts into HELOC, the monthly payment is 725amonth that the bank needs. So it's not about the interest. You have to be tactical. It's about what is the cash outlay for the family, how much is it Costing from cash outlay on a HELOC it's interest only payments. So instead of $17.95 a month on all those payments, now the payment only required by the bank is 725. So what do you do with the remaining 1070amonth which is the difference between these two numbers? Well think about it. If they funnel additional 1,070amonth through their banking system, what is that going to do for them financially towards achieving their goals? Is it going to create more compounding of cash values, dividends, death benefit which is their wealth for rest of their life? Answer is yes. If they have more access and more growth of capital in their banking system, is that going to accelerate debt pay down because now they can borrow more and pay down the debt even quicker? Well the answer is yes. What is wrong with putting more into your banking system so that you can compound more of your wealth for life and accelerate debt elimination timeline of whatever financial goals that you have for yourself when the above happens, does it take any of your options? Here are your next steps. Schedule a becoming your banker call so that we can have a discussion on how we can implement debt recapture for yourself. Or maybe something else that you want to use a banking system for. If you Google SN8 Financial and I have Edmonton location which is our head office. Now you can see right Here there's about 269 4.9 star reviews for the HQ office here in Edmonton and over 3005 star Google reviews for Toronto. Our objective is to add value for our clients based on their very specific goals. Whether it's debt recapture, whether it's buying real estate, whether it's growing business. Now here's some of the reviews on debt recapture from Klein. So our Forbes says we had a tiny bit of money with one of the big name investment management groups for years. We worked hard, earned a decent income and managed to stock away a tiny bit every month. This is truly an amazing program. It's not a quick rich get but it will make sure that you get rich or wealthy. This is Wayne. My family and I have been working with Cerblo for several years. We are plowing away at a pretty big debt load and some new financial issues along the way. Cerblo and his team have been truly helpful, reduced some of the pressure points and be on banker system have truly helped us during what the world has endured in the last few years. Here's another one from Andrew. I've been participating in the infinite banking concept for over 40 years now and I'm fortunate to Say Jason Lowe is my advisor. Before getting started, I recall bombarding him a lot of questions, which is good. The more questions he asks, the more clarity you're going to have. We don't sell. We're the buyer in the relationship. We want to make sure that we are able to add value. But the decision to implement the process is going to be mutual decision. We're not here to sell anything. Now today I can proudly say that I've paid off all my debts while enjoying the process of becoming a banker. I can't express in words how important powering this process is. Yahima Ascending Financial changed my life and my family life. We paid off our bad debts and we are continuing to access funds from our policies, which puts us on the banking system gate. So here's what you got to do. Schedule a becoming a banker. Call, text it with schedule to 780-809-4599.

You know, you walk through the process and, and then we've got it. Well, does it still make sense to do this for the mortgage?

Definitely it's going to work with the mortgage. It just we have to be tactical in paying off the mortgage because mortgage is a bigger amount. It's an elephant. And we're going to punch it. We're going to punch it tactically so that it makes sense from progress standpoint too. So if you look at Glenn and Sheila, so by the time they reach year eight, the cash values were $179,000. Now when they implement the process, the mortgage balance was $650,000 and they were making a monthly payment of $4,000 a month, which is principal and interest. So fast forward eight years because they had to make those monthly payments to the mortgage. The mortgage balance eight years from today won't be $650,000. It may reduce it down to maybe, I don't know, $500,000. And now they got access to $179,000 in cash values. Can they take a policy loan now and actually put good chunk on their mortgage and reduce their mortgage effectively? The answer is yes. So the mortgage balance by year eight was, let's just say $500,000. And by applying like $180,000, it would reduce it significantly by almost $200,000. It'll probably go down to $300,000. Now they'll be using insurance company's money to pay down the mortgage. Correct. While their cash value still grows, there's a few things that we can do. So if they already have like a re advanceable mortgage set up on the property. So as they pay down the principal, in this case good chunk of money, they automatically regain access to the line of credit. So whatever you pay down on a readvanceable, you regain access and line of credit. So in case an opportunity comes up for you where you're like, I wish I had access to capital to capitalize on this opportunity, then you're not going to be in that position where you're like, I don't have access to capital because it's re advanceable. Where if it's not re advanceable you pay it down, then you may not have access to that capital right now at that time when the mortgage balance goes down to $300,000. Because the objective is to give the bank that laced off your money. Can you call the bank and say, hey Mr. Banker, can you take my $300,000 and re amortize that over 30 years? And if you do that, is the monthly payment still going to be $4,000 a month through the bank? No, it'd probably be half of that. Maybe it'll be 2,000amonth. Then what do we do with a $2,000 saving which the bank doesn't need? You just registered a second mortgage on your property using your bank. If you registered a second mortgage, should you not take that 2,000 in saving and actually back into your system? So you're still going to make the same $4,000 a month payment, but you're just going to change who is going to get a good chunk of that going forward. Now you converted 50% of your payment, which was a liability, into an asset while still having access to capital as a line of credit in case an opportunity comes up.

Why is cash value less than a premium deposit?

The era of instant coffee. We want instant everything, including wealth. Building instant gratification doesn't exist, guys. There's delayed gratification. There's strategy, there's planning, there's building, there's discipline. There's intentional work that has to be done. You're starting an asset from scratch that never existed before. You have to go through the capitalization. But after three years looking at Glenn and Sheila, for every dollar they put in, they have access to $20. Do you think they'll be happy that they actually went through the capitalization phase and actually started the policy? You have to get through, get over that, that hump in an asset where for every dollar you put in, you get access to more than dollar, then everything going forward is a gravy. But you have to get there and that's Your behavior. How long does anybody has the need for use of money? Is it over just three years.

Or is it for life? This is something that's going to stay with you for rest of your life and it's just going to get better and better. What we're looking to get accomplished is you becoming your own banker is quicker to do it through this process which involves a tool called participating dividend paying, corporate policy.

What do I do if I'm not insurable? If you're not insurable, it doesn't mean that you can't implement the process. You certainly can own policies. Still, I don't actually have to be the body, right? I can actually implement the process. I can practice the concept. As long as I have somebody who is an insurable interest in my family or a business or what have you, I can actually own policies on other people's lives. Another great question we got which might help people, especially those that are new to this process, is like, what's the process I got to go through to get a policy? What's it going to look like? What's like all those steps, how soon.

Am I going to be able to.

Get a policy loan? Those kind of things are always good questions that people have if they're new to this concept.

First step in the process is to schedule you becoming a banker. Call. We want to meet with you. Without meeting with you, we can't get started. So. So let's meet, let's get acquainted, let's understand each other. Let's see how we can add value to what you want to get accomplished. That's that first 30 minutes you have questions and it's great. The more you have, the better it is because the more clarity you'll have. And then we have a first IBC meeting which is a 60 minute discussion and we take a deep dive into understanding your financials. Money's coming to the family, money is leaving the family and what your specific goals are. Once we have the clear picture, then the meeting after that we can show you what your plan is and then you'll know exactly how it's going to work.