Becoming Your Own Banker | Earn Back The Money Spent on Cars

Everything begins with the way that you think. If you were the one controlling that transaction, that financing right now, you can just stretch out your amortization. Even if the rate goes up, your payment can see the same. If you are the one controlling the transaction right now, you can take vacation from those payments and be in a stress free way. But because you're not the one controlling it and interest rates have gone up now it's negatively impacting you. It's not because of just the rates, it's also because you're not the one controlling it. We're going to put you back into the control position when you become your own banker in your life. Remember, everything begins with how you think. The problem is never the problem. The problem is always how we think about the problem. One of the main reasons why we don't have enough money for retirement or to be retirement ready is because of all the money that we spend on buying cars. Now is that a fact? One of the reasons why we don't have enough money in retirement is because of all the money that we spend on financing cars or financing equipment. Now let's do a quick tally. And when you think about the word purchase, what it means is paid cash for it. So if you paid cash for the car that's purchase. If you finance the car that's also purchased. But if you've leased the car that's also purchased. Now everything begins with the way that you think. This is what Nelson has taught us. And this is the biggest lesson that I have learned after spending so much, so much time with Nelson, reading his book. And then he also goes on saying that many people would rather die than think. And in fact most die. That's another fact. Now in the bottom left hand side, if that's you and we think right, it's a good habit to think. So we think. We thinking results in imagination, imagination results in ideas. And ideas don't work if you don't have strategies to implement those ideas. And, and once those strategies are in place, we take action on the strategies. Action creates an outcome. Now outcome is not good or bad. Outcome is just an outcome. And then the whole process of thinking starts again. Now this needs to change. This thinking needs to change if we need to change the outcome in our favor because everything starts right here. So everything begins with how we think. And we're going to do a lot of thinking exercise today. I'm going to set some foundation before we dive into solution mode. What's your biggest asset? Here's your biggest asset. This is one of the biggest asset, it's your ability to think. That's your biggest asset also in addition to everything else that you have shared. So the process of becoming a banker is an exercise. Imagination, logic and reasoning. And all three components have to come together for you to make an intelligent decision of implementing this process in your life, personally or corporately, especially imagination and thinking. So in your own mind's eye, if I invite everybody to start thinking in your own mind's eye, think about your favorite restaurant, a restaurant that you will take your family to for a huge celebration. I just want you to think about what your favorite restaurant is. And I know you have that name in your mind because you've been there several times. Now, why is that restaurant your favorite restaurant? Is it because the food is good? Maybe that's the reason. Maybe you like the ambience, maybe you like the service, maybe combination of all that, and that's how you determine that's your favorite restaurant. Now, as you were thinking about your favorite restaurant, I bet you didn't think about McDonald's as a favorite restaurant, but yet McDonald's is the most successful restaurant on planet Earth. And why is McDonald's the most successful restaurant? Is it because the burgers are so good? The burgers suck. I would say the fries are good. Now, the reason why McDonald's is the most successful restaurant or one of the most successful restaurants, probably more successful than even some Michelin stars out there, because McDonald's did something differently that most restaurant chains don't even think about, right? So it's never what you do. It's everything about how you do it. It's not about what you're going to buy in life. What you're going to buy are the things that you need in life, like food, clothes, vacation, kids, education, retirement cars, grow your business, retirement, cash flow, whatever you need to buy in life, it's essential, you have to buy it. It's not about what you're going to buy in life, it how you're going to go about buying it, that's going to create the difference in your financial growth going forward. The how is the process. So that's why becoming a banker is a process. And that's the process which is going to enhance anything that you do today or that you're going to do going forward financially. So becoming Euro Banker is a process which will radically improve anything that you do financially. Now here's another fun thinking activity. Now, let's assume that you have a gic. Now, GIC stands for Guaranteed Investment Certificate for those who may not be familiar with gic. So basically, when you buy a product called GIC from a bank and you put money into it, you are contractually guaranteed the return of your capital in the gic, plus the interest that the GIC is going to earn over the duration that you pick for your gic, whether it's three years or four years. So let's assume you have a GIC and you have $30,000 in GIC and it's earning you 8% per year, which is really, really good. GIC is not close to earning 8% right now, but let's assume that is happening for you right now. We all have the need for use of capital. So in this case, let's assume that you have the need for $30,000, you need this money to buy something. And here are your options. So option one is you can call the bank and say, I would like to withdraw the $30,000 out of my GIC, which is presently earning 8%, and you can take your money and then go use the money to buy whatever you're going to buy. That's option one. Option two is you can leave your GIC the way it is and Let it earn 8%. And what you do is you use a GIC as collateral. You pledge this as collateral with a private lender and you take a private loan. So the private lender will give you $30,000, which is what you need to use, but the private lender is going to charge you 16%. And then terms are you have to make monthly payment of principal and interest and you have to pay this loan back in four years. So if these are your options, one is use your money which is presently earning 8%. Or option two is use the private loan, $30,000, but then you have to pay 16% on that loan. So which option will you select? Do you want to use your cash or do you want to use private loan? We are trained, our human brain has been trained to make decisions based on rate. And when someone looks at this transaction, they say, well, if I borrow this money at 16% and my GSA is earning 8%, well, I'm going to lose 8%. So I'm not going to take this deal or rather just take my cash and run with it, because this deal just doesn't make any sense. So like, why are you proposing this? Like, maybe you do math differently in Calgary. Well, let's look at the option. So let's assume that you actually selected the option too, where you had the GIC earning 8%, you place that as collateral. And you borrowed money as a loan from the private lender at 16%. So let's do some math. So private loan, so you borrowed that money $30,000. Interest charge is 16%. Loan duration is 48 months. That was a condition. And the monthly payment is $833. Total repaid is 40,028. So basically the interest paid to the private lender is 10,028 on this transaction. This math checks out. If you want to go cross check it, please go for it. Now while this person used the money from the private lender and yes he had to pay 16% but he didn't touch that GIC. So let's see what was happening to GIC. So the money in GIC $30,000 was earning 8%. That never stopped growing the compounding duration over the same time period, 48 months. The account value at the end of 40 years is 41,269. So the interest earned in GIC is 11,269. So if you summarize what happened, interest paid on private loan is 10,028. But interest earned in GIC is 11,269. So the teaching point is GIC at 8% over 48 months actually came out ahead financially beyond the interest that this person had to pay on the private loan. And the private loan was at 16%. But those who selected option one, your mind must be thinking this logic doesn't make sense. How can I earn 8% payback at 16%? That just doesn't make sense from math standpoint. But when you actually do the the calculation it perfectly makes sense. And here's the reason why. The 16% was a loan. And as they were making back a principal and interest payment, the principal was reducing the balance. And because the balance was reducing, the interest was being recalculated on remaining balance. So as they kept paying down the loan, the interest just got recalculated. The GIC was compound interest. So as time went on, they were earning interest on interest. So they overall came out ahead. Right now the teaching point is not hey, go buy GIC at 80% plus that is collateral to get a private loan of 16%. That's not the teaching point. The teaching point is just to get a thinking or imagination going. You know, we're not going to make decisions on rates going forward. We are going to do our calculation and then make an intelligent decision if the deal makes sense. Right? So if you believe in compounding, when do you want your wealth to stop compounding we never want a world to stop compounding. Now we are going to talk a lot about not just compounding. Compounding is something you're familiar with. We're not here to talk about compounding. Compounding is great. What we are here to talk about is the power of uninterrupted compounding. That's where the value is. Uninterrupted compounding growth from now till the end of time. Now, today there's a super duper global equity fund. Now this fund guarantees 25% average rate of return in four years. The keyword that I'm using is guarantee. So if there's a super duper global equity fund guaranteeing 25% average rate of return over four years, are you excited to put some money into it? Hypothetically speaking? Now let's invest $50,000. So we all invest $50,000 into this fund. So the initial investment is 50,000 in the bottom, you'll see the year. So year one, the fund did pretty good. We put in $50,000. The account value increased to 100,000, which is a hundred percent increase in account value. Year two, the fund didn't do that. Great. And we are down to $50,000. We haven't lost money, but the fund didn't do really well. And it's 50% reduction compared to year one. But year three, we go up to $100,000 and now we're super excited. So year three is back to 100k, which means it's 100% increase from year two. But then year four comes along and the fund doesn't do really well and they dropped 50% as compared to year three. So this is what happened in the fund. And let's just do some tally work. So the initial investment was $50,000. The duration was 40 years. The account balance after four years is $50,000. Now, the average rate of return promised was 25%. Now what rate of return did you actually receive on this investment? But what if I say to you the fund actually made an average of 25% over the last four years. And again you're thinking, hey, trouble, I thought you are an engineer. Like what is happening to your math skill. I put in 50k after 4 years, I got 50k. Where is the 25% average rate of return? Well, here's, here's what happens. So first year we have 100% increase in account value. Next year 50% reduction. Third year, 100% increase. Fourth year, 50% reduction. So let's do some math. So first year is 100%. So plus 100, second year is minus 50. Third year is plus 100, fourth year is minus 50. So 100 minus 50 plus 100 minus 50 is 100%. The money was invested for 40 years. So 100 divided by 4 is 25% average rate of return. So what you were promised you got, it just didn't happen. And this is the kind of stuff that happens out there if we work where things are based on average rate of return. See roller coasters. I love roller coasters, but it's great for amusement and experience. Not certainly for, for building wealth, Right. When it comes to building wealth, I prefer to go up using an elevator because I know I will go up. So becoming your own banker is not about addressing a yield in investment. It is about how one finances the things of life, which can certainly include investments. It involves building wealth with certainty and contractual guarantees. And I'm putting that on the screen. Certainty and contractual guarantees. Now think about this. When you borrow money from the bank, how much risk does the bank have in that transaction? So how much risk does a bank have when you go and borrow money from the bank? Let's use an example of borrowing money for real estate purchase. So how much is the risk to the bank on that transaction? None, Neil, 100? None. Because the real estate itself in this example is the collateral for the bank. And then in case we default on the loan, they can garnish our wages, right? So if you borrow that money for investment from the bank, you took the risk, but the bank didn't take the risk. Now let's pick any bank. Now I'm going to, I'm not here bashing banks, but let's just say one of the five big banks, rbc. Now if you go to RBC to borrow money for the purpose of buying real estate, they'll be super excited about it. They'll happily entertain you provided you qualify for the loan. Now if you go to RBC and say, I would like to borrow money to buy RBC stocks that you trade on tsx, RBC will look at you and say, sorry, we don't do that. I'm not going to lend you money even if you want to buy our own stocks, because that's a high risk investment, right? So again, bank. The way the banking business works, banks lend money with security. They do not invest with risk. So the very same institution that believes in the fact that lending money with security is the best way to create financial growth going forward, they make us believe that investing money and taking risks is the best way to get ahead in life financially. So either the bank knows something and they're getting really rich, or they're really stupid and following the same motto. Which one do you think it is? Right. Again, not here to bash banks. Now let's do one more fun thinking activity. When you get paid, where does the money go first? Where do you think the money goes first? In the bank. So the bank's using money before you see your money, Right? It goes in the bank, and then you start using the money to buy the things that you need to buy. You know, we all need to exchange money for the purpose of buying the goods and services that we need to to make. We got to purchase all those goods and services. So beginning of the month, we have a high account balance. But by the end of the month, what happens to your account balance? It goes down. Because you're using your money for the purpose of buying things. Look at this animation. Zook is gone. Now, who did all the work to earn money? You did all the work to earn money. But in the end, who got all of your money? Someone else did. Now, is that a problem? Now if that's a problem, then the solution becomes clear, right? See, we all familiar with the process called banking. The issue is not everybody is controlling it. Now, beginning of the month, we have a pot of gold. Let's just say that's a mortgage payment for the house. And then we have the same thing for the car payment. If you have appliances that we are financing, we got money for the appliances, house, remodel, furniture, you know, credit cards. We pay for credit cards, family vacation, investments. So beginning of the month, we have all that money. And by the end of the month, all that money is transferred away to someone else, in this case the bank. And all these transactions are liabilities now because the money is leaving you. And all we're talking about is for you to get that bank out of the picture. And actually you become your own bank or you become your own private banking system. And if you become your own banking system, if you create your own private family banking system, then all those payments that you are presently making now come back to your system. So now all those payments which were originally liabilities now become assets. Because the asset is not the house, the car, the appliances, the investments. The asset is the stream of payment. And someone has to get those stream of payments. And who better than you to get the payments? So become a banker and have the banking function work for you, which is against you. It doesn't matter what your financial goals are, whether it's to pay off debt, buy real estate, grow business, kids education, emergency funds, buy cars, keep taxes away from wealth, intergenerational transfer of wealth. Rather than taking your money and accomplishing all those objectives, take your money put into your system first and then use your system to go buy the things that you need to buy so that you're always financially making progress and you're always recapturing and recycling the money back into your system. Now here's another question. Who's the biggest thief in the world? Who do you think is the biggest thief in the world today? The government cra. We get that response all the time. Now who here thinks that they are not being taxed enough? Now? Are taxes going down in future tax problem is probably going to get worse. So here's another exercise. Now let's talk about tax free environment and taxable environment. Now let's say you have $20,000 that you're willing to invest per year for next 20 years. And let's assume you're investing that money into something that's going to yield 4% per year. And let's also assume that you're in your 30% marginal tax rate. So if you're operating in a tax free environment, 20,000 per year for next 20 years at 4%, the account value at the end of 20 years would be $220,000. Sorry. That's the interest that you're going to earn on the investment, $220,000. Now if you do the same thing in the taxable environment, you're still doing $20,000 per year for 20 years at 4%. But because you're paying 30% tax, your interest earned at the end of 20 years is going to be $140,000. So tax free will be 220, taxable is 140. Now here's something really interesting. If the taxable environment has to match what the tax free environment did, in this case, the taxable environment has to earn almost 7% to match what the tax free environment did at 4%. Now here's a question for you. When now you have to chase a higher rate of return. 4 versus 7. What comes along with the higher rate of return just to match with the tax free did? What comes when you're chasing a higher rate of return? Now what comes alongside is the risk. So when you chase, high rate of return is not just the high rate of return that you have to chase, it's also the higher risk that you have to manage. And the definition of risk is simple. It's subjecting something or someone to the probability of loss. So higher rates, higher risk, high probability of loss. Yes, it's higher gains too, but it also has high probability of loss. So again, tax free versus taxable. When taxes go up, tax free becomes even more valuable. And why am I talking about tax free? Because that's one of the things that we're able to accomplish is to build our wealth on a tax free basis going forward using the process of becoming a banker. Now, wherever wealth accumulates, someone or some entity will try to steal it. That's a fact. And by the way, CRA has no sense of humor. I have tried it. It doesn't work. I'm still waiting for a birthday card from them. I've given them so much money in taxes. Not once they've sent me a birthday card. Maybe you've received one, I don't know. Now, becoming a banker is protecting your wealth against market losses. Becoming a banker is about protecting your wealth against taxes and fees. Becoming a banker is about protecting your wealth against losses due to interruption of compounding. Nobody talks about this. The biggest erosion of wealth is interruption of compounding in addition to market losses and taxes and fees. So we will protect us from all these three major risks. Now here's another question for you. When you borrow money from the bank, who dictates the repayment terms and conditions of the loan? Is it you, the borrower, or is it the lender, the bank, who dictates the repayment terms? A rhetorical question. Answer is obvious, but again, we got to think so. It's you or the bank, and we know it's the bank who dictates the repayment terms. Now, has increase in interest rates affected your cash flow today? Now was it just your cash flow that was impacted or did it also cause stress, anxiety, fear, confusion, uncertainty and changing plans? Cash flow was not the only thing. Nobody talks about emotions. This is emotionally how it's impacting you today. Now here's something to think about. Is increase in interest rate or inflation the real cause of what you're feeding today? Or is it the lack of control on the financing function, the real cause? Remember, everything begins with the way that you think. If you were the one controlling that transaction, that financing right now, you can just stretch out your amortization. Even if the rate goes up, your payment can see the same. If you're the one controlling the transaction right now, you can take vacation from those payments and be in a stress free way. But because you're not the one controlling it and interest rates have gone up now, it's negatively impacting you. It's not because of just the rates. It's also because of because you're not the one controlling it. We're going to put you back into the control position when you become your own banker in your life. Remember, everything begins with how you think. The problem is never the problem. The problem is always how we think about the problem.

See, as time progresses, interest rates go up and interest rates go down. One thing continues no matter what. Any guesses what that one thing is? Interest rates go up, interest rates go down, market goes up, market goes down. But function called banking continues no matter what. And if you're not the one controlling the banking function in your life, then indefinitely you will negatively be impacted by it going forward. It's not the last time it's going to happen. Right now. Do you want to achieve total and absolute control on finances? Then become your banker in your life. If you want to have total and absolute control when you become the banker in your life, you will radically improve anything that you do financially. The very first principle that must be understood is you finance everything that you buy. And that's a fact. You finance everything that you buy. You either pay interest to someone else. When you borrow money from someone else as a loan, you go to pay interest on it. That's financing on borrowed money. Or you give up the interest that you could have earned when you pay cash for things. Now think about the Cash doesn't mean physical cash. Cash doesn't mean today you got some, I got some USD in front of me. Cash doesn't mean you take this USD and then you go exchange this USD for goods and services. No, cash means debit also. Cash means credit also. And then paying off the credit card. I met with a client the other day and said, hey, when was the last time you paid cash? He's like, I think it was like five years ago when I paid cash. When I met my barber. I said, no, I'm not talking about physical cash. I'm talking about when you used your money to buy the goods and services that you wanted to buy, right? So when you use your money to buy the things that you want to buy, you are making a decision of giving up the interest that you could have earned. And that decision or that losing interest is not just over your lifetime, that's for next generation to come. Because when that cash is used, that money is gone forever. Paying cash is losing interest. Borrowing money via loan is paying interest. Now, who likes free money now? If I give you $5 today. So let's just say I got $5, I'm going to use USD and I take this $5 and I give it to you virtually. I wish I can do that.

I basically have given up the opportunity to reuse that money. Now how much of this money is now working for me? Well, I just gave up the answer. The answer is zero. This money is not working for me anymore because it's been transferred away from me. Now if this money is not working for me, how much interest I can earn on this money bill? The answer is zero. This cost of loss opportunity. So I'm 40 today and let's just say I'm going to live till age 80. That's 40 years. If I just make that one transaction of $5, it's not going to cost me $5. It actually costs me 36 because I could have invested that money and grown that money for rest of my time on planet and converted into 36. So I reduced my net worth in retirement time by $36 by paying $5 in cash. Now if I pay 50 bucks in cash, then I'm reducing my future net worth by 360. And if I pay 500 bucks in cash, I'm reducing my future net worth by 3600. Now if I pay 5000 in cash over the year, I'm reducing my future net worth by 36,000. And if I pay 50,000 in cash, then I have reduced my future net worth by $360,000. So now you can see how paying cash can be financially disadvantaged to you because that's what you are taking away from a future retirement pool of capital. And the more you pay cash, the bigger the problem. And again, nobody talks about this. There are no exceptions to the rule. You either pay interest or you give up the interest. Now it doesn't matter which of these methods you adopt, whether you borrow money or you pay cash, you're not just permanently transferring your money away from you, you. But, but the opportunity of reusing that money is permanently lost. Now do you see that as a problem? Because if you see it as a problem and I have a solution for you. So there's an old way of doing things and then there's a new way of doing things. Obviously the new way is the becoming a banker with the infinite banking concept. The old way is a traditional way of financing and paying cash. So let's look at the old way. So there's two kinds of people that we have. So one is a debtor. A debtor says that I just Cannot save money. The only way for me to buy anything is by just borrowing money, going into debt and making stream of payments back. And the saver says, I hate debt, I just cannot stand paying interest to anybody. So I'm just going to save up the money that I need and I'm going to use my money to buy the things. And I'm going to be better than the debtor because I'm not going to pay interest to anybody because I'm not borrowing money. Well, on top, it's a debtor. So debtor always relies on debt. So they go into debt to buy whatever they have to buy and then they start to make stream of payments back to the lender. And once the stream of payments are made back in full, they've accomplished the objective 100% of paying the debt. And they have the use of the money during this time to buy whatever they have to buy. But once they paid the debt, how much money do they have? And you can see they're back on zero. And then when they're ready to buy something else, they go into debt and they make those payments. And when they're done making those payments, they go back to zero. So again, they've used all that money, they transferred all that money, they got nothing to show for it is zero. And the situation continues. It's always zero. Once they're done paying, right, they accomplish the objective of using someone else's money to buy the things that they want to buy. But once they paid the debt, all the money is gone and they're back zero. Now saver on the other hand says, I don't want to get into debt, so I'm going to save money. So they start at zero and then they start saving money. Now here's something important for you to understand. When someone shared this with me, it was an aha moment for me. Saving money is another way of payment because we're setting aside money deliberately for very specific objective. We are making payments into a savings account for very specific objective. And once we have the money, we'll take all that money, buy the things that we want to buy, and then we start all the process again. Saving is another way of making a payment. You just don't call it a payment. So when you save money, you're saving money or you're making that payment as saving in someone else's bank. And once you have all that money saved, you take all that money, you buy whatever you have to buy, you accomplish the objective of buying whatever we need to buy. But all that Money is gone, you're down to zero again. And next time for anything else you need, you start saving. You start setting aside that money as a payment called saving in someone else's bank. And once you have enough money, you take all that money and you buy the things. Yes, you do accomplish the objective of buying things that you need. But all that money is gone. And if you think about debtor and the saver, is there much difference in the outcome between debtor and the saver? The debtor at is always coming at zero line and the saver is also down to zero line. The debtor knows how much interest the debtor is paying on that loan because it's there on the loan agreement. The issue is saver doesn't know how much interest they're giving up as an opportunity to earn. Because they may have not done the mouth on cost of loss opportunity. But doesn't matter whether someone is a debtor or someone is a saver. Whether you are a debtor or you are a saver with these two methods, whichever method you adopt, yes, you keep getting the use of money to buy the things, but the money is always being transferred away from you, your family, your business, forever. Now here's something from Nelson's book, but it's William Shakespeare. Now he says all the world's a stage and all men and women are merely players, right? You all remember that. Now this is from Nelson's book and he uses Shakespeare's code to actually build on that. And he says most people know there is a financial play going on out there in the financial world, but they don't understand understand it. And worse than that, they can't get the characters in the play straight. So here are the characters. So there are four characters in the financial play presently. Doesn't matter which transaction are you doing. There are four characters that are involved in that transaction. The deposit is the money who deposit. The person who's just deposits the money in the bank and you presently are depositor. Your paycheck goes into bank as a deposit, right? The second person is a borrower. You may have borrowed money from a bank as a loan. The third person is the banker. Now banker is the individual who dictates the terms on the repayments of the loan. So he is the control freak in this transaction, right? Number four is the bank owner. Now the bank owner is the person who receives the profits from the bank. When banks become profitable, the profits may not go to depositor or the borrower, it only goes to the bank owner. So there are four Characters in the financial plate. These are the four characters. And if you want to have the money flowing back to your family, your business forever, you have to become all four characters in the financial play. And we'll definitely talk about that today. Presently you're just a depositor and the borrower. We're going to make you the banker and the bank owner. And you all mentioned that you want to have total and absolute control going forward. So if you want total and absolute control, you have to become all four characters in the financial play. Becoming your banker is not about changing your cash flow. It's not about working any harder. It's not about changing your financial goals. And it certainly doesn't involve losing control over your money. It's all about becoming these four characters in the financial play. Remember, every decision you make with the use of money is a financing decision. Now let's talk about family bank. Now, before we dive into looking at case study on car financing, life cycle of car financing, it's important to get some perspective regarding the tools that we use to implement the process of becoming a banker. So we'll definitely chat about tools because any financial strategy needs a financial tool. Now let's agree. Your money needs a warehouse, right? So if your money is sitting in your wallet, in your pocket, underneath your mattress, behind your dollar tank, it's a warehouse. That's where the money is warehousing, maybe in a checking account, savings account. Your RRSP is a tfsa. It's a warehouse of money. So money needs to sit somewhere. Now if you can warehouse your money inside an entity, capital can never reduce in value, where it grows on daily basis, where financial turmoil in the marketplace doesn't negatively impact its growth, it's shielded from losses. Where all the growth is tax free and where it's readily available to access in case an opportunity shows up. So if you can warehouse your money inside an entity which has these attributes, may I ask how much of your money you don't want residing inside an entity like that? You probably want all your money sitting inside an entity like this, right? Now let me introduce you to that entity. That entity is called Participating Dividend Paying Whole Life insurance. Those are the attributes I just described regarding participating Dividend paying whole life insurance. Now that policy is the tool. Now I'm purposely showing you a Swiss knife on the picture because Swiss knives is a multipurpose tool, no different than how Swissness is a multipurpose tool. It could be used for different things based on how the user or the consumer wants it. The participating dividend paying whole life policy is a multi purpose tool and it can be designed in so many different ways based on your unique needs, based on your unique situation. So it's all customized. That's why it's important to have that one on one discussion with the coach on a team and authorized infinite banking practitioner. And I'll share with you how you can schedule that complimentary, no obligation, no commitment from the call, but you have an opportunity to connect with someone on the team so that you can discuss how this can work for you and your family. Now why this tool? Now the reason why we use this tool is because it allows us to become all four characters as I mentioned, so that we can have total and absolute control. Now this is a perfect tool that has also all the attributes required for recapturing interest. Again I talked about recapturing interest beginning of my talk and I'll share with you the essence of recapturing interest in the case study. Now a participating different paying whole life policy has a few components. So first is premium. Now you may have some sort of insurance product today, whether it's car insurance, crop insurance, health insurance, maybe you do have life insurance also. So one thing that's common in all insurance product is premium because that is what you pay for the insurance company to give you the benefit. So in exchange rate premium, they'll give you the benefit. That same thing applies there. It's, it's premium is there. Now if you think about premium, if I may help you just, you know, rethink your thinking. So think about premium as a deposit into your banking system. So and if it's a deposit into your banking system, then premium is what do you want it to be? If you put a hundred bucks a month in a bank for 12 months, you'll have $1200 at the end of 12 months. Now if you decide to increase that deposit to 200 bucks per month and you do that for 12 months, then you'll have 2400. So you decide how much you want to put in. And based on this example, the more you put in, the more you'll have. Premium is what you want it to be. Now death benefit, it is life insurance and death benefit is just what it is. It is a benefit that is paid on death. When the life insured becomes an angel, that benefit is paid tax free to the named beneficiary. Now the other component is cash values. Now cash value is your capital and you're going to see I go through my presentation that cash values are contractually guaranteed to grow on Daily basis. Every day you wake up, your cash values will increase. So cash value is your capital. Now the last component is dividend. So the word participating dividend paying means by virtue of you owning this policy, you're not just owning a policy contract, you're actually co owning the insurance company business. And insurance company is the business, it's not a charity. And purpose behind any business is to do one thing and one thing alone, which is to be profitable for the owners of the business. So anybody who has a participating dividend paying whole life policy will share indivisible profits from the insurance company. And it's all based on contribution principle. The higher the premiums, the higher the contribution, the higher the dividends. It's all on based relative insurance companies in Canada just for trivia, they have been paying dividends to policy owners, participating dividend paying whole life policy owners since 1848 every single year. Now today we are 2023 and since 1848 they paid dividends. That's over 170 plus year track record of paying dividends. Now think about all the recessions, depressions, the pandemics that we have experienced just in our lifetime, but then expanded to the last hundred plus 170 years. So over all those years they have been profitable because an insurer, a business cannot pay dividends if the business is not profitable. Right. So they must be doing something really good. Now if someone gonna say this also if someone has a million bucks and they say, hey insurance company seems like you do a pretty good job of producing profit, here's a million bucks, I want to share in the profits of the insurance company. Insurance company would say this to you in good humor. They say we don't want a million bucks. If you want to co own the business so that you can get some profits as dividend, all you got to do is buy a participating dividend pay holder policy and that's what it takes to have an ownership stake in the business so that you can get dividends. So again, premium is a deposit, it's what you want it to be. The more you put into your policy as premium, the more compounding on the policy you'll have for the rest of your time on planet earth worth so premium is a deposit. Think like a deposit. Now premium is the solution to the problem. The problem that we're solving is taking over the banking function in your life, personally or corporately. And think about all the money that you owe to someone else, AKA bank. And if it's a lot of money, which means you got to build your system to point where it can control that function for you. And the only way you can accelerate that timeline is actually putting lot of money into the system. It's all relative, right? So again, premium is a solution because it creates a bigger pool of capital to use to control more of banking function going forward. Now premium is a capitalization. So when you put money into it, that's basically capitalization. You're capitalizing your business, you're starting something from scratch that never existed before. So you got to capitalize it. And then capitalization has to be very intentional because when we set up these policies for clients, we are working backwards from a very desired outcome, which means we're working towards a clear financial goal. Financial goal could be, hey guys, I want to be able to access $50,000 a year from today because I'm going to take the $50,000 and go buy an equipment or go buy real estate or go pay off debt. So those are just, that's just an example of clear objective and then working backwards to seeing, okay, how much we can put, how much we should be putting in today to make sure that objective is met.

Now death benefit, like I mentioned, is just what it is. It is benefit. It is received tax free by the name beneficiary upon the debt of insured as say this in good humor. You know, financial planning will be so much easier if you just know the best before date that we have. So if you just know the day, the date that we're going to leave planet, we can just work backwards and create a financial plan. But here's another fact. We all have a best before date stamped on our back. We just don't know what that date is, right? So at some point in future, it's not if, it's when we are all going to die one day. And that's when the death benefit is going to come walking in tax free. And if you live a long life, then you're going to be financially fine because you'll be able to control your banking function over the life cycle of the remaining of your life. So cash value is what you can borrow against as a banker and cash value is basically your capital and it grows on daily basis. So every day you wake up, your cash value goes up and the contractual guarantee is that total cash value of the policy must equal total death benefit by age 100. So for example, if someone buys, let's just say X amount of death benefit on the policy and they're just starting the policy today, every day they wake up the Cash values will increase because by age 100, cash values must match the death benefit. And the way we design policies is that your death benefit actually is a moving target. Every year or in some cases every month, the death benefit increases. And when death benefit increases, it positively increases the cash values even more. So the policy is designed to increase the death benefit because the more death benefit we grow, the bigger the cash value becomes and cash values of capital. And I want to just emphasize the difference between capital and money. Now if you think about gold and silver, now gold and silver are capital assets. It's not money. It can be converted into money or whichever medium of exchange that we have, if we borrow against gold or silver, or if we sell gold and silver. But gold and silver is capital. No different than that. Cash value is capital. And it could be converted into medium of exchange. Whatever the medium of exchange is available on demand and you, the policy owner can actually determine that, not the insurance company. You have full control on it. The cash values grow tax free. And cash value again is not money, it is capital. And it's available on demand to policy owner. Now you can access 90% of cash values via policy loan. And if you access money as a policy loan, your cash values will continue to grow and compound uninterrupted as you're able to access insurance companies money to put their money to work while your money continues to grow in the policy. Right. So the question that I asked earlier is if you believe in compounding, when do you want your money to stop compounding? And everybody said no, never. We never want our money to stop compounding. Hence our preferred mode of accessing capital is always policy loans. We'll talk a little bit more about it. Now, dividends. Now you become the owner. So dividend is basically your share of divisible. Profit from the insurance company is based on contribution principle. The more you put into policy as premium, the more you're going to have as profits from the insurance company with dividend. And when policies are structured properly, that's obviously our number one objective is to structure policies properly to implement this process. Dividends will be tax free provided the policy structure properly. Now policy is not designed to maximize dividends. One question that we get all the time is hey, I want to get the most dividends. That's not the best way to design policies. The policy is designed to grow the death benefit. The bigger the death benefit, the more you grow in the death benefit, the more cash flows you have. The more you grow in the death benefit, the bigger your dividends get. And if you roll those dividends back into policy to increase the death benefit, then it just becomes even better going forward. So the policy is never designed to maximize dividend. Think about dividend as an icing on the cake. You know, do you like cake? I love cake. And I'll eat the cake if there's no icing. But it just makes it better with the icing. Right? So it is, the policy is designed to maximize your behavior. And your behavior is the premium because that's what you control. And it is structured in a way that premium will increase the size of death benefit going forward so that you have more cash value growth and you have more dividends going forward. But it's designed to maximize your behavior, not the insurance company. Now you have family income. Technically, if all your money today is flowing to the books of someone else's bank and you're okay with it, when you become your own banker, should you not be putting all your money into your bank? Well, the answer is yes. But we can't stop there. We get there, we don't stop there. So family income after expenses. Let's just say it goes into policies. And I'm showing just as examples, three policies, maybe husband, wife and a child. Because we want to diversify in life insured, you know, in the family. Nobody, everybody has the best before date. Nobody has a lease on life. So you want to make sure that there is life insurance in the family. So now we create family banking systems. Now, premium in the family banking system does one thing and one thing alone, which is it buys death benefit. The moment it buys death benefit, it creates because of contractual guarantee from the insurance company, there's cash values. And because there's cash value, there's also policy loans. So policy loan is 90% of cash value. And as time progresses, the cash values will keep increasing. And because cash flows are increasing, your access to capital via policy loan will also increase. And cash value is increasing to match the death benefit by age 100. So every day you wake up, your cash flows go up. And the policy is designed to increase the death benefit. So when death benefit goes up, it pulls the cash value even better going forward, the cash value growth becomes better when death benefit increases. Now, points to note, when stock market goes up, cash values go up. When stock market goes down, cash value still goes up because it's inside a contract which has a contractual guarantee that by age 100, cash values must match the death benefit. So stock market can jump off the Mount Everest tomorrow, but the cash values will still go up. Crypto goes up, up, cash value go up. Crypto goes down, cash value go up. Teaching point is whatever what happens outside in the financial world doesn't impact what happens inside the policy. Interest rates go up, cash values go up and trust us, go down, cash value still go up. I think you get the point. Now here's the solution. By becoming your own banker, you become a wealth creator. Think about this green line as a cash value. It's increasing every day as you wake up to match the death benefit by age 100. It and when you need access to capital, you get to borrow against this growing pool of capital as a loan. And then once you borrow this money as a loan a there is no qualification or anything like that to access this money and you can repay the loan on your terms. So when you repay the loan back, you're able to go back to the policy and actually access more than what you had accessed originally. And then at point number two, now if you access money, you repay that loan back on the terms. And now when you're done paying the second loan, you're able to re access more than what you access the second time and the first time because you're paying into a growing pool of capital, you pay back on your terms. You can stretch the amortization to whatever you want to stretch it to and you don't have to qualify for the loan. And the cash flow keeps growing tax free. So let's look at a case study. We talked about car financing. Now before we dive into case study, here's fundamental four steps of banking that I'm going to follow in this case study. So number one is deposit money. So we got to deposit money. You are a depositor. So now we're going to deposit money into our, our banking system. We are premium. So that's the first step. Number two is to borrow money. So because we're going to use the system to buy the car, we're going to borrow money to go buy a car. So that's a borrowed money, that's the borrower. Number two, Number three is we're going to repay the money because we want to be an honest banker. If we have no issue paying someone else's bank, why should we have an issue paying back to the bank? Bank? Now think about this. If you're the banker today, your biggest asset is a stream of payment. And if you start a banking business, you need to have stream of payments coming back. So no different than how you would be paying someone else's bank. Make sure that you pay your bank back because nobody is going to come after you if you don't pay back the loan. You got to be an honest banker.

And then obviously we're going to create profit. It's certainly not going to be profitable if you are not going to be an honest banker. Year. Right. So meet Jack. So Jack, he's 36 and the cars that he's gonna buy. So let's assume that Jack is gonna buy seven cars. The value of each car is $30,000. He's gonna buy seven cars over his lifetime. So from age 36 all the way, I think till age 77, he buys his last car at that time. So his first car he starts at age 37 and his last car, okay, so his last car he purchases at 873. So from age 37 till 873, that's life cycle on car financing. So his objective is to finance cars using the system. He wants to buy seven cars. He wants to keep the money with him going forward. He wants to recapture the stream of payments, no different than how you would have those payments going to someone else's bank. And by doing this, he also wants to accomplish the objective of being retirement ready. So the process is to buy the car. And the byproduct is going to be that he's not just going to have the cars and the stream of payments coming back. He's also going to set him up for success in future when it comes to retirement ready. And you're going to see that. So method of purchase. So he's going to use policy loans now. So when Jax initiates a policy loan to buy the car, may I ask, whose money is it? Is it his own money or is it the insurance company's money? Perfect. Policy loan is insurance company's money. So if you guess insurance company, you're right. His money will be inside the policy, growing every day. Now here's another question. Does Jack need to qualify for the policy loan? Yes or no question. No, he doesn't have to qualify, which is fantastic. Do you have to qualify when you borrow money from a bank to buy a car? Okay. Does policy loan get reported to Equifax or Transunion? Yes or no question. Policy loan doesn't get reported to Equifax or TransUnion. Does your car loan get reported to Equifax and Trust Union? So ask yourself this question. Am I negatively impacted if the loan doesn't get reported to TransUnion, Equifax, or I'm positively going to benefit from it? Are keeping things Private important for you in today's environment? I think so.

Now, who controls the repayment terms of the policy loan? Is it the insurance company or the policy owner? And because it's policy owner, that brings the total and absolute control. Because interest rates can change. But because they have full control and repayment, they're going to manage their cash flow and they're not going to be stressed with negative cash flow going forward because the interest rates have changed. Now here's another question. Does outstanding policy loan balance impact daily cash value growth or future dividends? Absolutely. Now, does outstanding policy loan balance impact death benefit? If your answer is yes, you're right. So at that any outstanding policy loans, they're deducted from the death benefit and the rest is paid to the family tax free. But while they're alive, the death benefit continues to grow. It has no impact because the policy loan outstanding, it's just when death occurs, the net proceeds from death benefit is paid to the named beneficiary, subtracting the policy loan balance. Now, does insurance company charge interest and policy loans? Yeah, you're right. And they should charge interest and policy loans because that's one way for them to make profit. Think about it. If you and me are in business together and I come to you and I say, hey guys, we own this business together, we have a lot of capital in it. I want to access some capital, but I don't want to pay any interest on it. You are going to fire me from the business because I'm beating the purpose behind what the business got started, which is to be profitable. So insurance company says, if you can deploy this capital somewhere else and own a profit for you as the owner, why should we give this money to you for free? Capital has a cost, but you can pay back the loan on your terms. And here's what we're going to do. We're not going to interrupt the growth of your cash values, Right? So four steps of banking. So here's what the client did. He deposited premium. So 20,000 per year. That's what worked for him, 20,000 per year. Now he borrowed money. So car loan is $30,000. So he took $30,000 for each car, he wants to buy seven cars. It was a policy loan and current interest rate is 6.5%. Isn't that lower than the bank today? And then he repaid the loan back as a bank. And what worked for him from his cash flow was a loan repayment of 500 per month, which is 6,000 per year. And that's what he Used to repay the loan and then obviously create profit which you're going to see. And his profit is going to be retirement ready, plus the objective of buying all the seven cars going forward. So let's get started with the first car. Now here's, here's the policy. So you're going to see the policy. Now he is 36 when he's starting. So you can see the first column is year and age. So 1, 2, 3, that's policy year. And then the second is age 36, 37, 38, 39, so on and so forth. The second column is premium. So you can see $20,000 going in for seven years. Now premium as you can see, never goes up. Premium can go down. The policy owner can elect to reduce the premium, but it can never go up. So 10, 15, 20 years from today, if inflation goes up, up and cost of running insurance companies business has gone up, they cannot go back to the policy unit and say, hey, for us to now give you the same benefits, you have to put more premium in because the cost of running the business has gone up. That cannot happen. The premium stays the same, it cannot go up. Now, cash value is their capital. And you can see the cash values are increasing as time progresses. And the reason why the cash value, cash values are increasing is because cash value has to match the total death benefit by age 100. So we've designed the policy to increase the death benefit. Hence the cash value is increasing because cash value and death benefit have to match by age 100. Now year two, he's got about $36,000 in cash value and he's ready to buy his first car. The value of car is $30,000. Initiates a policy loan to buy the car. Now what he can borrow as a policy loan is 90% of the cash value. So you can see there's more than enough cash value to sustain a policy loan of $30,000. When he take the loan for $30,000, insurance company will use his cash value as collateral. They're not going to reduce his cash values. Cash value is just the collateral. All the cash values are going to grow uninterrupted and then they'll put a lien on his death benefit for the policy loan. So in case death occurs and any policy loan was outstanding, they'll deduct the policy loan outstanding from the death benefit and the family gets the remaining money. And this money gets deposited between seven, let's just say five to 10 business days, the money is in his bank. So when he took that money to Go buy the car. He used insurance company's money, but the lien for the loan is his future debt self, his death benefit. So technically, when he used insurance companies made to buy the car, he owns the car free and clear, not using his money, using insurance company's money. And if you own a car in free and clear, then yeah, certainly you can get better rates on the insurance. But if you're paying cash for a car, you may be able to also negotiate a good price. In this case is cash from the insurance company. Now, so he went ahead and paid cash for the car, he's bought the car and now he's being an honest banker and he decides to pay back his loan. So 500 bucks per month, 6,000 per year, and he's going to make a loan repayment for six years. You can see 1, 2, 3, 3, 4, 5, 6. So 6,000 per year for six years. That's 36,000 in loan repayment because he's paying also the interested insurance company, which is 6.5%. He borrowed 30K, he repaid back $36,000. All right, so he's bought the first car, he's repaid the loan. Now let's do some math on the back end to see how much was the cost to him to buy the car using the system and was it worth it.

Now let's calculate cost of buying first car using the process of becoming a banker. Now, cost of buying car in this case is simple. How much money did he pay to the insurance company or how much money did he give the insurance company, which is the premium, because premium is what he paid to the insurance company. And the policy loan repayment is also what he paid to the insurance company. So that's how much money he gave to the insurance company. And then basically cost of buying cars, money in, money out. And money out is what he took out to buy the car as a loan, which is $30,000. So if you do money in minus money out, that basically gives us how much did it cost for him to buy the car using the process of becoming a banker. So let's calculate money in. So money in is the premium for this first seven years. So $20,000 every year for seven years. That's $140,000. That's what he gave the insurance company and then the loan repayment, which is $36,000. So money in is premium plus the loan repayment. So 20,000 multiplied by seven years plus 6,000 multiplied by six years. So total money into the insurance company is 160 $176,000. That's what he gave to the insurance company. Right. Now what he took out from the policy as the policy loan is $30,000 to buy the car. That's the money out. So money in is 176,000, money out is $30,000. So cost of buying a car using the system, 176,000. Minus 30,000, it's $146,000. Right. So everybody is okay with the math. Right? So 146,000 is what costed him to buy the car. Now let's see what happened in the policy. So by year seven, age 42, that's when he's done paying for his car loan. Right. So he started his car loan at age 37, year two, took him six years to pay off the car loan. So at year year 7, age 42, he's done paying for the car. Now let's calculate.

Does this make sense for him to buy the car? Right. So cost of buying cars, 146,000. Money in, money out, which we did. Now how much cash values does he have at the end of year seven when he's done paying for his first car? So cash values at the end of seven years, 153,237. So if I take 153,237 and I divide it by how much it costed him. Let's do some math. So 153, 237 divided by 146, 146,000. And express that as a percentage, it equals to a dollar and 4 cent. So basically for every $1 that he spent on buying cars, he has access to 104% of that dollar. And all he's done is he's just changed the process to buy the car. Now here's a question for you. So Again, for him, every $1 that he spend on car now he can access a $4. For every $1 you spend on buying car today, how much of the money you can re access. So is he financially ahead by buying cars? And all he's doing is changing the process to go buy the car. Now let's get to the second car, because remember, he's gonna buy seven cars. So we talked about the first car. And first car is more like capitalization, right? He's just getting started with his banking business because banking is a business and he just started a business from scratch. And even in the first car, he's still producing a great profit. He had the use of the car, he can still sell the car after seven years to someone else and have that additional profit. But on the transaction of financing, he came out ahead financially while he was just in that capitalization phase. Now let's talk about the second car. Now every few years he's going to buy a car. So every, you know, six years he's going to buy a car. So let's go to policy year eight and he's 43 now, and now he's buying a second car. Now something magical is going to happen when he reaches year 8, age 43. And the magic that happens is you can see there's no premium. But insurance companies need premium from somewhere to keep the policy in place. Otherwise all bets are off. The way the client in this case is paying the premium is actually from the policy itself. So the dividend is paying the premium. Now, whatever is not in the div. And so, for example, if his. I'm just using this as example. If his premium is $5, right, and his dividend is $2, well, dividend is only $2, premium is $5. It's not enough to cover the premium. So the top up comes from his death benefit. So you're going to see that his death benefit gradually starts to go down temporarily just to top up what is not in the dividend to cover the premium. But as time progresses, the dividend will cover the premium and beyond that and the death benefit will start to go up again. So you're going to see that the death benefit in the policy is going down from year eight onwards, which will happen because he's not paying the premium. But what has happened to his cash values are this cash values going down or cash flow is still going up. And the reason why that is happening is because he's not age 100, he's still around age 47, between age 43 and age 47, and hence the cash values will still grow to match the death benefit by age 100. So that contractual guarantee will happen. Now he starts, he buys a second car. So at year eight, he's got 161,000 305,000 in cash value. That's more than enough money to buy a second car because he wants to just stick to $30,000 in car. Car is not really an asset, right? So he just wants to buy what he wants to buy to go from point A to point B. But the real asset is the stream of payments. And because he recaptured the stream of payments in the first car, he came out financially head, he converted that liability into an asset. And let's see what happens in the second car. So he takes out a policy loan for $30,000. And again, insurance company uses his cash value as collateral, puts a lien on the death benefit, which is now $821,000. And he pays back the loan exactly how he did for the first time. So again, he's not changing his objective of buying the car. He's not changing his cash flow to repay the loan. He's just changing the process to get to his objective. So the car loan repayment started at year eight, and by year 12, he's done paying the car loan. Now let's calculate between year 8 and year 9, age 43 to age 44, how much did his cash values increase? So from year 8 to year 9, his cash flow increases 9016.

So year 8 to year 9, year 8 to year 9, cash flow increases 9016. Now let's see how much was a loan repayment to the policy at year eight. So you can see at year eight, he paid back a policy loan of 6,000. But from year eight to year nine, the cash value growth is 9,016. Now here's a question for you. Are you going to be mad at me if you're able to pay back $6,000 and gross $9,000 in cash values? Is that going to bother you if that happens? Right. Something to think about. Now let's talk about cost of buying the second car. And the formula stays the same. Money in minus money out. That's a formula, right? How much we put in, how much we take out. The difference is how much it took as a cost to buy second car. So money in for the second car is just the loan repayment. That's all he paid the insurance company. There was no premium that he paid the insurance company. So his money in is only the $36,000 as loan repayment. So again, money in is premium plus the policy loan repayment. There's no premium. So the only money in is the $36,000. So his money in is $36,000. Now how much is the money out? He took $30,000 to buy the second car. So that's right here. Money out is 30,000. So money in for second car is 36,000. Money out is 30,000. So here's his real cost now to buy his second car, which is $6,000. That's what costed him to buy his second car. Now let's calculate from from year eight till year 12. Because that was a timeline for him to buy this car. And it took him $6,000 as a cost during that time. So let's calculate between year 8 and year 12, how much did his cash value actually increase? His cost is $6,000, but his cash flow increase from year 8 to year 12 is actually 35,420. So are you okay paying $6,000 in cost of buying a car using the System, and grow 35,420 in cash values and still have the car, which you own free and clear as an asset which you can sell if you wanted to? Let me know if this doesn't make logical sense. So Again, cost is $6,000. Time period, year 8 to year 12, age 43 to age 47. The cash flow growth is 35,420. And plus he had a car. Now let's do cumulative, how much was the total cost to buy the first car and the second car? So cumulatively, let's do. Let's do that math. Math. Now, the math is simple, right? Money in minus money out is the cost of buying two cars using the system. So money in for car one and money in for car two, we'll add it together and then we'll subtract it from money out and we'll go back to those calculations again. So again, this was the first car that we went over. So money in was the premium for the first seven years, as you see, and then the loan repayment for the first car, as you saw. So money in for the first car is premium plus the loan, which is $176,000. And money in for the second car is just the loan repayment because there was no premium. So the money in for the second car is 36,000. So total money in for two cars cumulatively is 176,000, plus 36,000, which is $212,000. That's basically how much he paid or gave to the insurance company for two cars using this process. Now the money out for two cars. So 30k for the first car, 30k for the second car. So he took out $60,000 to buy two cars. So again, cost of buying two cars, money in minus money out. So 212,000, minus 60,000, it's $152,000. That's what it cost him to buy two cars. Now let's fast forward to when he's done paying for his second car. So at year 12, age 47, this is when he's done paying for his second car. How much cash value does he have at year 12? So his cash flow is 196,726 right. So this is his cash value. We've captured this. Now his cost of buying two cars cumulatively is $152,000. So if I take 196,726 which is his cash value and divided by $152,000. So 196,726 divided by 152,000 expressed as a percentage, that's a buck 29. So which means for every dollar that he spent on financing two cars from his banking system, he's now able to access 129% of that money. Money again, car is a depreciating asset. He just converted that into an appreciating asset just by changing the process. And let's not forget there's death benefit. So God forbid, as he was driving the car, he took a wrong turn, got hit by a bus, the family would get the death benefit minus the outstanding loan and the family is going to be fine financially also. So again, where are you getting 129% for every dollar that you spend on two cars? Think about that. For every dollar they spend on two cars cumulatively now they get access to one 29. So again, becoming about creator works, this process of becoming a banker works. And it doesn't matter where you get started from premium standpoint, the best thing is it's going to work right away no different than how you saw in this example. Now let's fast over to car number seven, his last car. Now he buys the last car at year 38 when, when he's age 73. Now do you know any 73 year old still driving around and maybe buying cars? I know some people who were that age and they, they bought the car and they told me this was going to be the last car, but I don't agree with that. So client of mine, they started their first policy, husband was age 81 and they met with me and they said we're going to, to build a system for the purpose of buying our last car. They called it the last car. And I said well if insurance company approves you in life insurance policy, you're going to be implanted for a long time. So don't think about this being your last car. But the good thing is we're going to build your system to finance how many cars you need going forward. Right. So this in the expanding the program they took additional three policies on their grandkids. So if someone on the webinar thinks they're too late into this, well, I don't think so. You're not late. It's all about how we think. Now let's Fast forward to 873. So premiums. They haven't paid any premiums after the first seven years. So starting year eight haven't paid any premiums. The policies actually paid the premiums. Now you can see at 873, the cash value has significantly increased to $621,000. So at age 73, the cash flow is a $621,000. And let's just say they want to retire at this time. So did they build a system from age 37 or age 36 all the way to age 73, not just for the purpose of buying cars, but also to be retirement ready? Are they pretty close to retirement ready now? And all they did was build a system for the purpose of buying cars. That's all they did. That benefit now is $977,000. So you can see that that benefit has gone up because the dividend became more than the premium that was required. And then that accelerated the death benefit going forward. So getting closer to projected mortality, they're in a much better, stronger estate protection too for the family, because they started at $490,000 in death benefit, and now the death benefit is almost a million bucks. Right? Plus all the money that they can spend at retirement. So let's buy the last car. What we can do is we're going to actually do a tally on on all the seven cars they have purchased in this system. And the formula hasn't changed. The cost of buying seven cars is basically money in for all the seven cars that they paid to the insurance company and money out for all the seven cars that they have financed from their policy. So money in for all the seven cars. So remember, their premium was paid for the first seven years. So $20,000 per year for seven years. And then they just paid the loan policy loans back on all the seven cars, which was 6,000 per year for six years. That was a loan repayment for each car. And because they bought seven cars, we're going to multiply that by seven. So 140,000 was the premium. And this is how much they paid back as a loan for all seven cars. So total money that they gave the Insurance Co. Is 392,000 for seven cars. To finance everything from the system, that's money in. Now let's calculate money out. So the money out to buy all seven cars. So cost of cars. So 30,000 multiplied by seven. So the money out for seven cars is $210,000. That's how much they took out as policy loans to buy seven cars. So again let's go back to our formula. Formula is money in minus money out. So the cost of buying cars, money in minus money out. So 392,000 minus 210,000. That's 182,000. This is the real cost of buying seven cars using the process of becoming a banker. Now let's go and check how much cash values they have in the policy when they're done buying the last car or paying back the loan on the last car which is the seventh car. So 873 is when they purchased their so called lost car. And by the time 877 came because they took time to pay back policy loans. So at 877 is when they paid their last policy loan back for the car. So this is the cost of buying car $182,000. And then this is their cash value, $751,000. So if I take 751,000 and divided by 182,000, let's see what happens. 751,000 divided by 182,000 thousand. That's if that fraction is 4.12 or 412%. So basically over the life cycle of card financing, using the process of becoming a banker, for every dollar that they spent on cars they have access to 412% of their dollar or for every dollar they created access to $4.12 and retirement ready and that benefit and the use of seven cars. And they probably sold those cars for some value also. So, so that's all the unseen that's happening behind now this transaction over the life cycle of buying cars. Was this transaction similar to what you experienced through the bank, which is stress, anxiety, fear, if the interest rates changes things, changes confusion, uncertainty or change in plan. Or was it actually the complete opposite of all that? Now is there anything wrong with stress free way of living? Is there anything wrong in stress freeway of living? This example wasn't cars. But will the outcome be any different if it was used for financing anything that you need from business equipment standpoint, from investment, for paying off debt, for sending your kids to education, to college and university, for education, the transaction stays the same. I just took one of the most common commodity that everybody needs and everybody relates with so that I created a session on that. But the process is the process. The money could be used for anything that you need money for. The transaction is not going to change life cycle of card financing. Just summarizing it from age 35 to late 77 cost of financing cars $182,000. That's what it costed them. They are retirement ready now. The ability to buy those cars and do all the great things and the cash values are $751,000. So is it okay to spend 182,000, have the use of seven cars, maybe resell those cars and create $751,000 in future capital that could be used for retirement? And all the growth has been tax free. In addition to that, the death benefit is now a million bucks. They live a long life. Do you think they did okay using the process of becoming a banker with the opportunity to just reuse and recycle all the money that's growing and if they die prematurely or if they die at some point, you think the family did okay from the death benefit which was was there on the side measure. So think about it and if they would have financed all those cars somewhere else, would that have created the same outcome that you see presently? They're going to finance cars anyways. They just prioritized it with doing research, educating themselves, working with an authorized infinite banking practitioner to do it through the system. And they weren't. They're not going to do this alone. We're going to be there every step of the way. Coach them, show them if they need to be happy to meet with clients for any strategy session they have the banking function on things you finance work for you versus against you. And as time goes by, economy progresses, economy regresses, stock market goes up, stock market goes down, real estate goes up, real estate goes down, interest rates go up, interest rates go down. One thing continues no matter what. Any guesses what that one thing is is the process called banking that continues no matter what. And someone has to control that banking function in your life and it should be you or who else should it be. The best way to do it is by becoming your own banker. That's the best way to do it. Way of living by taking back control from the banks, from manipulative stock market, from the government. Now if you Google SNN Financial there's different Google location. This is something I picked from Edmonton location in Toronto location. This was actually a few months back so the numbers have increased. So think about this. Can an agency get five star Google reviews for selling life insurance? No. The reason why we get all those amazing reviews and feedback from client is because of the process of becoming a banker which we teach them on once they become a client as and there's no limitation on how many times we have to meet to discuss strategies. We love talking to clients about the implementation of the process and go to any location and just pick any review and you will see real people leaving, real experience working with us. So text the word So I said, hey, we're going to be, we're going to invite you to have that discussion so that you can talk about how this works for you. A do not bring any money to that call. There's no money required. There's no commitment for you to become a client or for us to take you on a client. It's just a meeting for us to meet and answer some of the questions that would have come up for you and see how we can add value to what you want to get accomplished using this process personally and corporately. The best thing that can come out of the meeting is you'll leave the meeting with some more value, right? So text the word schedule to 780-809-4599 and you can select a day, a date and time where you want to meet. It's just that when you meet, make sure that we're going to give you undivided attention but make sure that you also, you know, omnipresent in that meeting. Let's not have any distractions because we want to make sure that meeting is the best use of your time. Virtue is grace. Put this together and make a big smiley face. You deserve a stress free, stronger financial future. Right? So text the word Schedule to 780-809-4599 and Schedule A time that works best for you and myself and my team. We're looking forward to having that discussion with you.