Becoming Your Own Banker | Enhance Your Investing

Think about the interest. People say, oh, the life insurance company is going to charge me interest on my own money? That doesn't make sense. Well, first of all, it's not your money. Your money is growing every day in the policy. Your capital is growing. You're borrowing the life insurance company's money. They are contractually bound to lend you their money. And I'm a co owner in the life insurance company. Think about this for a second. If you co owned life insurance company and you found out that they were lending money to clients interest free, would you be happy about that? Everything begins with the way that you think. And so that's what we're going to talk about today. We're not going to talk about anything radically different than what you're already doing today. We're just simply slightly changing the process of how you go about doing the things that you're already doing. And everything begins with the way that you think. We want you to think like a banker. Everything you call an asset, they call a liability. Everything you call a liability, the they call an asset. Isn't that interesting? Almost sounds like the definition of a conflict of interest to me. But something to think about. So you got to follow the money. Let's follow the money. Let's. Let's think about this for a second. Now you earn an income today. You're doing all the work, you're taking all the risk. In what direction is the money actually flowing in your life? You see, we have to finance all these things. Of course, you're ambitious people. You want to create wealth. You're leveraging and you're buying assets and you're creating passive income and all those things and all that stuff is really good. But. But you still have to finance appliances and home renovations and maybe have credit cards and lines of credit. You have car payments. We have furniture and vacations. All these things that we need to finance throughout our lifetime. And you can see that the money is flowing in one direction. Jason Lowe, who you may have heard of, he's the founder of Ascendant Financial, he always says, you know, I sit down with a client and I say, hey, Mr. Client, how much income do you earn every year? And the client says, oh, I earn a hundred thousand dollars per year. He says, well, are you really earning a hundred thousand dollars a year or are you just handling a hundred thousand dollars a year? Because that money's just flowing hands and ultimately leaving your family. So picture in your mind's eye all of the payments that you've made in your lifetime up to this point. And think about how much of that money do you have today? How much of those payments do you actually have? And unfortunately it's probably zero, right? So we have these leaks in our life and we need to, we need to find a way to button those leaks up. And that's part of what we're going to talk about today. See, we're all familiar with this process called banking. That's the reason why the money is leaving you is because of banking. What the problem is, is we're just not controlling that function. Right? If you think like a banker, we want to control the process of banking and we want to control the flow and the access to money and ultimately have more capital being put to work so you and your family can do more things with less hard work. So becoming your own banker is all about creating a private family banking system so that you have total and absolute control. You have a hundred percent control over your banking and financing needs. So that we can flip the phenomenon that's happening today. All of the money that's leaving you today, we can and flowing through the books of somebody else's bank. By implementing this process, we eliminate that problem and have that money flow back to our family. Give this your close attention, have an open mind. And if you focus on this and you put in the work that's required to understand the process. Because it is called becoming your own banker, it's not showing up here and buying some product. We're coaching you to implement a process called becoming your own banker. So you pay close attention and it can have a radical improvement on your financial future. Here's a fact. You have to exchange money for the things that you need. Money is money. You need to exchange money for buying a cup of coffee, for buying a vehicle, or to finance an investment. They only take money. So money is money. And there's two methods to acquire the things that you need in life to buy everything that you need. Again, I want to emphasize the fact that when you, when you finance or buy something, we're talking about anything. And it could be a car, an investment, a private loan, whatever you need in life, a stick of gum. There's two methods to go about getting the things that you need. One is you can use your money that you've worked for and pay cash for it. Or you can borrow money from somebody else. Opm. If you do it strategically in a smart way, that might be a good thing to do. But those are the two methods. Here's what happens when you pay cash every time you spend A dollar, you lose the opportunity to earn interest on that dollar. And obviously you when what you do see is that when you borrow money, excuse me, you borrow money, you pay interest on that money. Both of these methods are actually a permanent transfer of wealth away from you and your family. It doesn't matter if you save up the cash and spend the money or if you borrow money and make payments. Both are a permanent transfer away from your family. It looks a little bit like this, unfortunately. Does that look familiar to anybody? Is that what it feels like? Well, maybe, except for the American dollars, but other than that. This slide, I actually, I love this slide. This is one of the slides that I connected with most when I was really start starting to learn again. It doesn't matter what you're going about financing, but let's just use a car, for example. You need a new car and you have an option and you could be a debtor. You can see that there's a zero line here. And when you borrow money from somebody else's bank, you drop below the zero line and then you have to make payments on their terms back to somebody else's bank for five, six, seven years, whatever that is, just so you can get back to zero. And maybe life's improved a little bit and you buy a more expensive vehicle. Now you drop even further below the zero line and you go all the way back up to zero. And you repeat this process throughout your entire life. And then all of a sudden you get to the point where at the end you're left with nothing or maybe a pile of debt. Now the saver, nothing wrong with this because we do the very best we can with the knowledge and resources that we have. But you're saving money right now maybe for. If you're a real estate investor, you have to save money for property taxes and that's coming from the rental revenue. You have to save money for maintenance, you have to save money for vacancies, you have to save money for insurance costs. All that money is being saved in someone else's bank and that bank is putting that money to. Or if you're just saving, let's say for a vehicle, because you say, you know what, I don't like making payments, I don't like paying interest. I'm going to save money and I'm going to pile that money up until I have enough cash to achieve the objective that I want to achieve. And then I'm going to drain my money down and then I'm going to save money up again. If you look at this ladder, doesn't that look. Or these stairs, doesn't that look a lot like a payment? Doesn't look much like what's happening above. And all of a sudden you go through your entire life, you're saving money and you're spending the money. You're saving money, you're spending the money. You're never actually creating momentum on the money. And then you get to the end and you have all the stuff and somebody else has all your money. And that just does not work. The problem is never the problem. The problem is actually how we think about the problem. So when we change our thinking, we can ultimately find more solutions. Let's talk about the problem. Because is it fair to say that you cannot create a solution for anything until you clearly understand the problem? You're able to buy the things that you need, but when you buy the things that you need, the money is actually gone. So you're the one who's actually doing all the work. You're the one who's taking all the risk, but somebody else is getting all of the money. Like think. Think about your rental properties. Think about rental income for a moment. Who's actually getting most of that money? Who has use and control over most of that rental income? It's the bank. The money is permanently transferred away from you and your family. And you can see that we. I highlighted this big forever. It's not just this generation. It's not just your generation. It's every generation that comes after you. The money is gone forever. But the good news is there is a solution. The solution is to create your own private family banking system. The process of becoming your own banker. Why would we want to do that? Well, we want to do it because we know that it works, for one. But this is a term that a lot of people are not familiar with. The reason why we want to do it is because we want to recapture the interest that is presently leaving us today, either through lost opportunity costs from spending our own money, that's a permanent wealth transfer, or from paying interest to other people, which is a permanent wealth transfer. We're going to do a bit of a fun experiment here. I'm not suggesting that you should put money into a GIC. I'm not suggesting that you can find 7% GIC. This is just a hypothetical for us to think about so we can think about how interest actually works and how sometimes numbers can be just a distraction. We have a $30,000 GIC earning 7% per year. Now you have a need for $30,000. Have you ever had a need for $30,000? If you have $30,000 and you don't need it, I will happily take it. I always have a need for $30,000. There's no shortage of things to spend money on. So now in this example, you have a need. Maybe that's a down payment. Maybe you have a large real estate portfolio and you have property taxes, there's a coup. You can use your own cash and you can withdraw the GIC and say goodbye to the 7%. Or you can use a private loan and you can borrow from someone at 12% with a principal and interest payment over a four year term. Now here's the question. Which option are you going to select? So let's first examine the private loan. This is option number two. So we have a $30,000 loan and we have a 12% interest and it's a 48 month payment schedule. It's going to be $790.02 per month is the payment. So the total amount that we've paid is $37,920.72 with 79, 20 and 72 cents is the total interest. Now let's take a look at the GIC. Now we've left the GIC in there earning 7% or whatever investment, the alternate investment at 7% for the same 48 months. And now the total balance of the GIC at the end of that time is actually $39,320. And we have 3,9323 of total interest earned. So which was the better option, was the better option to leave the money in the GIC and let it grow and compound, pay interest to somebody else in this instance, or was it to withdraw the money? Obviously, in my humble opinion, it would be to leave the money. And you probably already know why did we earn more interest at 7% than we paid at 12% is because we're paying 12% on a declining balance and we're earning uninterrupted compounding interest on the gic. So again, the purpose of this exercise was to say, hey, go and borrow money at 12% and save money somewhere or invest money at 7%. It was to get you thinking about the power of uninterrupted growth, uninterrupted compounding on your money. So if we could build a system that could allow you to grow and compound your money day in, day out, year after year, for the rest of your time, while maintaining the ability to borrow against that value without ever interrupting the growth, this is the Potential of what is possible by implementing the process of becoming your own banker. It's just to get you thinking differently. Differently becoming your own banker, unlocking the infinite banking concept or ultimately the family bank. The main objective is to actually keep the money in the family and keep the money working for the family so that we can recapture the interest. We have a third option. We can pay cash and lose interest, we can borrow money and pay interest, or we can recapture the interest within our family banking system. This slide is going to give you a visual of what that looks like. You want to become a wealth creator and you are actually your own best advantage. Because think about this for a second. You are already somebody else's passive income. I'm willing to bet that each and every one of you have some sort of a debt. Whether it's rental, real estate, that mortgage debt, you have your own primary mortgage, maybe you have a car loan, maybe you have a line of credit. Those debts, those liabilities are someone else's asset. So if you're already somebody else's good customer, you're reliable to make payments to somebody else, why not just do what banks do? Why not create your own private banking system so that you can become your own best customer. And if you can become your own best customer, you can do like myself and my teammates and you can expand and build a family bank that goes beyond even my family. I call it the core four. I have myself, my wife and my two kids. We're now expanding our family bank to start to loan money privately to our family members. And you know, we have our own rules and we have our own agreements in place. And you would have your own rules and agreements in place. And sometimes people say to me, gosh, Vernon, I can't believe you lend money to your brother in law. I would never lend money to my brother in law. I said, well, if you wouldn't lend money to your brother in law, there's a good chance that the bank probably wouldn't lend money to your brother in law either. So he wouldn't be a good customer. And that's fine. I have family members that I don't lend money to. But we have in our family we have something called a one strike rule. So if I lend money to somebody in our family and we write up a contract and we have an agreement to have that money paid back in a certain period of time and if they run into trouble, all they have to do is give me a call, we can sit down, we can have a meeting and we can negotiate the terms and push out the payment date. But if I don't get that phone call, much like the bank, the bank's not going to like that when you don't pay them. I don't like it very much when I don't get paid. So I have a one strike rule. If we don't fulfill on our payment agreement, then you don't get to participate in family banking by becoming a wealth creator. What we're now doing is building a system. You can see this green line here is representing the uninterrupted growth on the cash in this system. And this red line, now we're not going below the zero line, that's just a visual. But this red line is much like the other slide. It is you actually borrowing from that system and making repayments back to your own system instead of somebody else's. And you're making these payments back to your system on your terms. But you can see what's happening as you're making payments back to the system. You can see that you have access to an ever increasing pool of financial value. So every single time you make a payment back to your own system, you're able to go back and re access what you've paid back, every single penny, plus what grows. So that's ultimately how to become a wealth creator. Now how do we do all this? Just like anything else, if you're going to build a fence or if you're going to cut some grass, there's certain tools that you need to use. I joke with clients a lot. You may have heard me say this, like you could get out on your hands and knees with a pair of scissors and you could cut your grass and ultimately the objective is to get the grass cut. And you may achieve that objective eventually, but you might want a better tool like a ride on mower or like something with some gas, right? So that's where the tool called a participating dividend paying whole life insurance contract comes into play. The process of becoming your own banker, it's often collapsed with insurance. Becoming your own banker actually has nothing to do with life insurance at all. It's just that the life insurance policy is the best tool designed a very specific way, ideally with what's called a mutual insurance company. This is the best tool that we've been able to find to implement this process. So if you have a better tool in mind, please let us know because we'll start using that tool. But we've been doing this as an organization now for combined 16 years. Nelson discovered this process in the early 1980s and these policies have been around for almost 200 years in Canada and well over 200 years in the United States. So this is the best tool being able to find so far. And here's a couple of reasons why. We'll point out that this is a private contract that you own and you control. And when we're dealing with, with a mutual insurance company, you actually become a co owner in a private business that is profitable. It's the only way for you to become a co owner is by owning one of these dividend paying, participating whole life insurance contracts. And all you have to do is pay premium. Now think of the banking system. Think of, think of building your family bank as building a business. Businesses require study, they require time, effort, energy and capital. So this process is much the same. You get to pay premium and you're the one who chooses what the premium is going to be. And it's very simple. The more premium you pay, the more cash you have access to and the more the system will compound. It is a, I consider it a deposit, but really you're funding your policy system. Now. It is a life insurance contract which means that there's a tax free death benefit that would be received by your named beneficiaries upon the death of the life insured. If you, God forbid, you die early, a lot of cash will pay out a lot more than what you put in. And if you live a long healthy life, then a lot more cash will get paid out. Because we're going to show you later how we actually grow your death benefit to enhance your legacy. We want to make sure that the family never has a bad financial day as long as we're here or after we're gone. This is where we start to implement or think about the banking process. Now this is a private contract that has cash value. Cash value is capital. It's capital that's building. If you're a real estate investor, it's much like equity. It's equity in a home or in this case it's cash value is what it's referred to as. But it's capital that grows inside the policy system every single day that you take air into your lungs. And when I say every single day, I mean every single day. Every single day the cash is going to rise because of a contractual guarantee, not because of some great investment. This is not an investment. This is a warehouse for your capital where you store your capital and you'll know that it will be there and it has an ever increasing financial value. So that cash value is going to rise every single day because of a contractual guarantee which is the total cash value must rise to match the total death benefit. So death benefits here, cash flow is here. Every single day that cash value is rising and it has to match the total death benefit in the life insurance contract. Now because you're a co owner in the life insurance company, you get to participate in the profit that's generated by the life insurance company every single year. The insurance companies will pay a dividend. Now obviously the insurance company has to produce a profit in order to pay the dividend. I don't really think about the dividend. I don't care about the dividend. I'm not buying the policy because the dividend. Dividends are great. I always say I like cake, but I like it better with icing. So the policy is cake and the dividend is just the icing. It's just the icing on top of the cake. If they didn't ever pay a dividend ever again, I would still be putting as much cash in the policy as I possibly can because my behavior is more important than anything the life insurance company is ever going to do. But the point is, is sometimes people confuse the fact. Oh yeah, it's because of the dividend, right? No, the dividend has nothing to do with this. It just makes it a bit better. Now here's the good news. The companies that we use have been paying dividends for 175 straight years in Canada. They've never failed to produce a profit. But yet the general public has been convinced that this is a poor place to save money. It makes absolutely no sense to me. It's very interesting. So the premium deposit, the payment that you make has two components. Now keep in mind, this isn't every life insurance contract. This isn't, hey, this is how life insurance works. We have a very specific way that we design our policies specifically for this process for our clients. So I'm referring to a policy designed optimally for the process of becoming your own bank or the infinite banking concept. Now how it's broken down is it has two components. It has a, what's called a required premium or a minimum premium. You're the one who's going to decide what that required premium is going to be. And then you have the contractual authority, you have a deposit option. There's additional capital that you can deposit into the policy. Completely up to you. And you have discretion over when and how you put that additional deposit into the policy. So what does it look like? What does it actually do? How do we grow death benefits benefit and how do we ultimately grow cash? I'm just using a hypothetical example here of a 45 year old, a person age 45. So you can see down here at the bottom right hand corner, 45 and we have age and then out here we have a hundred because that's when the contract will end. And now you pay premium, at least the required premium. Now when you pay the required premium, you can see that this is just a hypothetical because we're not showing what the premium amount is, but let's say it's a $400,000 starting death benefit. You pay one year's required premium or one month's premium because you can pay annually or monthly, whichever is best for you. You pay one premium, God forbid you get struck by lightning. No less than whatever your total death benefit, your starting death benefit. In this case, 400,000 would be paid out to the family, income tax free. Worst case scenario, you can see that this line here, from day one, cash value is going to start to accumulate and it's going to accumulate on a schedule. Not a rate of return, not an average rate or an average growth or it's a schedule. So if I'm 45 years old and I have a $400,000 death benefit, I'm going to have a growth based on a sched schedule. And the life insurance company works out that schedule. Now you can see here again on the side it says total cash value equals the total death benefit by age 100. Now we have do as in deposit option and D as in dividend. So deposit option and dividends will also come into the policy. So you can see that with this red arrow here. So you paid premium, white arrow deposit option and, and, or, and dividends come in and that deposit option and the dividends are going to purchase something called called paid up additions. Don't be confused by paid up additions. All it is is additional death benefit that was created by a one time single premium payment or a dividend payment that came into the policy. Paid up additions also has its own schedule. There's $30,000 of new paid up insurance paid up, meaning it's a one time single premium. And the paid up addition will also accumulate its own cash value because the total cash value has to rise to match the total death benefit. And now year after year and as you make depos, phenomenon continues. So you can see in this example, by the time I get to the, to the top here, I've been paying premium, my dividends are coming in, they're Growing and compounding as well. My paid up additions are growing and compounding over time. So I think I did this math earlier. I have 470, 520, 580. I have approximately $580,000 of death benefit at this point. And so a lot more death benefit means a lot more cash acceleration because cash flow has to rise match death benefit. And unfortunately I'm aging, so my window of time to age 100 is shrinking. So the insurance is going to accelerate the growth inside the cash value. So this is how we transfer wealth to the next generation and take care of the tax liabilities that are inevitably going to show up, which Henry will expand on later. This is a really powerful slide. To help you understand how the pool works now we'll get a little bit into the banking function. Now this isn't much different than what you're already doing. So you earn an income, family income. And now when we, at least when we first get started in the process, we have to use after expenses dollars. So you're either using cash flow from your monthly budget or you might have a pool of existing liqu savings available that could be shifted over to the policy system as premium. There's many different ways to pay premium, so don't get too hung up on that. Point is as you can see here we have bank number one, premium, bank number two, bank number three. That might be a husband, a wife and a child. Or that might be three business partners. Who knows who that is. We currently have 12 policies in our family system. Each of my family members, myself, my wife and my two children are life insured. Excuse me. And we just added our 12th policy which is on the life of my brother in law to protect some business liability that we have. And that, that is a banking style policy. So we're now using that to implement the system as well. Now here's what happens. These banks are is the family bank. Now first thing that happens is we have death benefit. Death benefit. God forbid one of these life insured passes away, the death benefit will pay out. But death benefit is actually what creates the cash value. So you pay the premium, your premium buys the death benefit. And then the death benefit is what creates the cash value. Because you're the policy owner and you co own the life insurance company. You're the sole owner of the contract. The life insurance company is merely on the hook to fulfill the contract, the contractual agreement. And one of the contractual guarantees is that you have access to up to 90% of the total cash value. So death benefit creates cash, cash Value creates loan availability. And now we know that every single day. If you watch my little graph here, because the cash value has to rise to match the death benefit. Every day, every year that goes by, your cash or your death benefit's growing, thus your cash value is growing. And if your cash value is growing, your loan availability is growing. See that? That's just a visual of exactly how the system works. So you have access to an ever increasing pool of financial value that you can deploy to achieve whatever objective you need or want to achieve. It's really that simple. It doesn't matter what the financial world is doing outside of your system. It doesn't matter if interest rates are going up or there's an economic downturn or the stock market's crashing or real estate's shaky. Your cash value is going up every single day. Again, it's not about, hey, become your banker and don't do anything else. You know, you don't need to do anything else. These policies are so wonderful. No, we're not stopping you from doing any of the things that you want to do. If you're investing in stocks. See, I'll just give you a quick another visual here. You can see this book here.

The policy system is actually what we refer to as an and asset. We're generally used to an or world. Hey, you can go and put your money in a stock or I'm going to become my own banker. I'm going to go put money in cryptos or I'm going to pay off some debt. Right? It's one or the other because you can only use your money once. But this system is all about being able to multitask your dollars and be able to put money into your system and buy your stock. So if your stocks go up, your cash value goes up. If your stocks go down, your cash flow goes up. If your crypto goes up, your cash flow goes up. If your crypto goes down, your cash flow goes up and on and on. What about interest rates? I can't control an interest rate, but I can certainly control the environment through which I bank. Bank. That's what I want to control. I don't worry about all the uncontrollables. I don't stress about it. I focus on what I can control. Because if interest rates go up, my cash value goes up. And if interest rates go down, my cash value goes up. The family bank is all about recapturing the interest. And I'm going to highlight that as I go through here. Keywords are your own. What we want to do is we want to coach you to implement a process so that you have more independence. We don't want you to be dependent upon us. If I go on a family vacation, I don't want you sitting around twiddling your thumbs and waiting until I get back to help you do some banking. We're going to coach you, we're going to train you so you actually know how to run your own system. And we'll always be here to support you and help you get creative and help you expand your system and find new ways to apply the system. But we're going to create, coach you to become your own. The way that I do things within my system or how Tiron does things in his system, or how Sarblo or Henry do things in their system, we're all practicing the same process, but our system is going to look different because every system is unique and we're going to design that system to meet your family's goals. That's the main objective. That's why we need to connect. We need to get to know you, make sure there's a really good connection and a good fit for us to build a strong long term relationship. And we can really clearly understand how you and your family are structured financially and what your specific objectives are. We need to know what your family goals are so that we can help you design a system to help you achieve those goals. Many goals that families have are financing comforts, things like cars and vacations. It's stuff that we all need. Well, you might have existing debts, you might have credit cards, lines of credit, car payments, mortgages. We want to recapture those debts because those debts, those liabilities are someone else's assets. And if those debts lived within my system, the stream of payments that's presently leaving me today to pay off or service those debts would be recaptured within our system and the money stays in the family so we can access it again and take advantage of opportunities. Debt recapture. You also need to finance investments. So again, it doesn't matter at all what the investments are. Today we're going to focus on some real estate investment examples. Examples, but it doesn't matter. Again, if you're doing real estate and, or stocks or cryptos or other types of investments, private lending, we can finance all those opportunities through your family banking system. People want to, you know, create generational wealth. Insurance is a valuable tool to transfer wealth to the next generation because you are going to have to pay terminal tax, you're going to have to pay tax down the road when you pass and you can pay the tax for dollar for dollar out of your own wealth that you worked hard to accumulate, accumulate. Or you can pay the taxes, pennies on the dollar using the life insurance company's money by paying premium. Now what we're going to do now is we're going to meet the Carter family. When I go through this example, I want you to be thinking about money is money. Yeah, I'm talking about financing a vehicle right now. But the same process, the same phenomenon will occur. You could be using it to finance something else. Now let's just talk about a couple of facts about the family because we had to find out some details. The husband, Dave, he is a project manager earning $120,000 per year. And Denise, she works in retail. They're both 40 years old. She earns 60,000 per year. And they have one son, Harry. Now they were introduced to the process of becoming your own banker, the family banking system in 2020 at age 40. And they had some goals. They wanted to take over the banking function for financing cars. You know, it's been said that Canadians will spend far more money on financing cars throughout their lifetime than they will ever save or invest for retirement. Retirement, like let that sink in. That is a scary thing to think about. So just imagine all of the cars that you've had to finance throughout your lifetime or you're going to finance. Imagine if you had that cash sitting in whatever your retirement vehicle is, whatever your passive income warehouse is for that capital. Imagine you could get all that cash back. What would that do for your family? They had a next car purchase coming up in 2022 and then they wanted to also build wealth for retirement keywords here without any risk. It can be done. There's nothing wrong with taking risk. There's nothing wrong with investing. It's myth that we've been taught that you have to take risk in order to grow wealth. It's just simply not true. Think like a banker. Do banks like risk? No. And so are banks really good at turning profit? Are they profitable? Yes. So that's a means of creating wealth. So they don't like risk, but they create a lot of profit. So they're not investing with risk like we're taught to do. They're lending with security. It's very interesting. So it's like, well, why don't I just learn how to do what a bank does does. Wouldn't that be good? They also wanted to create a legacy and they need, they wanted life insurance protection. So here are some facts. $180,000 of income for the family, husband and wife combined, they saved 20 to $25,000 per year. And they had no life insurance. And they already had access. They had a couple hundred thousand dollars worth of cash and some other assets, real estate and things like that. They started a policy in 2020 and they chose $50,000 as their premium. And they deposited that, you see it says for the first two years. Years, that's what they chose to do because they had some cash available, plus they have a certain amount that they're used to saving. So they actually had the option to reduce the premium in the third year down to $20,000. Remember I talked about that base or that required premium and then the optional premium that can go in. So they decided in the first couple years that they would maximize the capitalization and kickstart the policy. And then they had the option to reduce it or continue to deposit more into the policy. The starting death benefit on the husband was a million dollars to protect the family and $500,000 of term insurance. So term insurance is great, it is useful, it's very inexpensive and it creates a lot of death benefit for a low cost. You have that death benefit in place there in case somebody passes. But you can see it says for next family policy, we have the ability to do what's called a policy conversion. So I can convert my term insurance over to whole life with no medical evidence whatsoever. It's contractually guaranteed, I believe, up to age 70. So even if I were not insurable and I had a term insurance policy, I could convert that to a whole life insur insurance contract, assuming the company that your policies with has whole life available. So that's why it says for future policies. Imagine you're renting a home today and you call up your landlord and you decide to buy the home. That's like a conversion, right? And of course there's a whole qualification thing for that. So it might not be a great analogy, but that's what it means. Future policies. So this was the family vehicle they wanted, and the price tag was $85,000. That just makes my skin crawl thinking about it. But each to their own. Normally we have three options. We have the prepayment plan, which is paying cash. We have the post payment plan, which is financing, and we have the never pay it by leasing. So you can, you can lease the vehicle too. But now we have a fourth option which is implementing the family banking system, the process of becoming your own banker. So let's look at what happened for this family in 2022, after paying their premiums, they had $95,000 as a total cash value, a loan availability. They have daily growth inside the policy. And I say daily growth of $32 per day. Think about your various investments or maybe where your warehousing capital today are those investments growing every single day, day in and day out, by $32 per. Not every policy is going to look that way. Some are much higher, some are lower. Every policy is different, every system is different. But $32 per day and it's easy for us to find out what the daily growth is. We just have to log in today and look at the value, log in tomorrow, look at the value, and then deduct those two numbers. Now, the capital required to purchase the vehicle was 85,000. And they had more than enough in their system to do that. The death benefit now went from a million and it's already at 1,424,000. So are we further protecting the in the family? Yes. Are we secure in our legacy down the road? Absolutely. These are some frequently asked questions we get about policy loans. The policy loan does not impact the daily cash value growth. It grows uninterrupted, as if you never touched it. That doesn't affect the death benefit while you're alive. It doesn't negatively impact the dividend. Whatever the dividend was scheduled to be paid out. Whether you have a loan outstanding or not, that same dividend is going to get paid out. This is a private loan. It's between you and the insurance company. It's not going to show up. At Equifax or TransUnion, you are truly the banker. And at death, the outstanding policy loan will be wiped out. It'll be deducted from the death benefit. So if an $85,000 policy loan and have a $1,400,000 death benefit, more than $1.3 million is still going to flow to the family, income tax free. If this life insured were to pass away and they have no outstanding debt, they own the vehicle outright. In 2022, the cash value growth was $32 per day. The policy loan that they initiated was $85,000 and it showed up in seven days. We coach our clients to plan about three weeks ahead for policy loans because generally if you request a loan today, you'll generally have it in a week or so, which is pretty darn good. But that's not a guarantee. It could take longer if the volumes are really high at the insurance company. So you got to plan ahead. The daily interest on the life insurance Loan or the policy loan was $14 3043 cents per day because at the time the interest rate was 6.2%. So $85,000 times.062 divided by three 65 days. That's how it's calculated because they calculate the loan interest based on whatever the balance is today. So as you're paying down the loan, obviously the loan interest would decrease with it. So that'd be 14 a day, which is a heck of a lot smaller than $32 a day. So we're recapturing that interest within the cash value growth because as we pay that back, that interest and the principal we get to go back and access every penny that we pay back to the system. Think about the interest. People say, oh, the life insurance company is going to charge me interest on my own money? That doesn't make sense. Well first of all, it's not your, your money. Your money is growing every day in the policy. Your capital is growing. You're borrowing the life insurance company's money. They are contractually bound to lend you their money. And I'm a co owner in the life insurance company. Think about this for a second. If you co owned life insurance company and you found out that they were lending money to clients interest free, would you be happy about that? We don't want them charging no interest because they have a responsibility, they have a duty of care to put money to work, to grow profit for their owners, which is us. So we co own the lender. I want them charging interest and I happily pay them interest because if I'm not paying it to them, I'm going to pay it to somebody else or I'm going to give it up anyway. So I repay the interest to my own policy system and I get to recapture that interest in the policy growth. Now here's what the family decided to do. Here's the key thing. Decided to pay back the policy loan at $1125 dollars per month. Who decided that? The family decided that because they own the banking system and they co own the lender, they are in total and absolute control of the repayment. They could decide to increase that payment if they wanted to lump sum that payment, decrease that payment or pause it. All together now we're coaching our clients to create a payment schedule or have a plan or an intention to repay the loan. Because if you don't repay your loans to a real, a regular bank, they're not going to be too happy about that. And if banks have a whole lot of non performing loans, that banking system is not going to be around for very long. Your policy won't affect the life insurance company, but your system could collapse if you're not a responsible banker. And we'll talk more about that when we actually meet to do some coaching. But they decided the repayment schedule and they decided to finance it over 96 months. So let's do a little recap here of what actually occurred. So in 2020 22, they had $960 per month of growth or $32 per day times 30 days as the, as the example could be a 31 day month or 28 days or what have you. Now, they paid back $1125. And now here's how we recapture interest. We have $432 of interest that is being charged from the life insurance company. Now, the monthly transaction would look like this. $960 of growth in the policy, $1,100 paid, minus $432 of interest, which we don't have access to while the loan is outstanding. We have access to it once we repay it. So we deduct that from what we have access to. So we pay back 1125, but we can go back and borrow 1653. This is what we call a financial tailwind. Where else can you pay back 1125 and access 1653? Take all the time you need. This is powerful stuff. Think about the Tesla example. What this family did is they planned ahead and they said, hey, I want to buy a vehicle in two years from now. So they capitalize their system and they borrowed from the system and they paid for the vehicle and they repaid that loan. Now, you might already have existing debts outstanding. So this would be the exact same process. You're paying the debts that you currently have, or you're servicing those debts and trying to pay the minimum on those, those debts. So the least amount of money is leaving you while we build up your policy system. And then we're creating cash value, right? So imagine we have family debt and we have payments for that debt. This debt resides with someone else's bank. It is their asset and your liability. And over here, we're building the infinite family banking system. As your cash value grows, do you see the, what's happening to the debt and the payments on those debts? If we structure it correctly, the debt is being reduced, just like the Tesla example. Except in this, this case, we're building up policy and we're servicing the debts. And as we build up policy, we take loan from policy and we lump sum, let's say A line of credit and eliminate that payment. Well, if we eliminate that payment, the debt now is in the policy system and we can take that payment and redirect it to the policy system. So what we're doing is recapturing the interest and recapturing the payments and that growth and we're shifting where the debt resides such so that the cash value continues to grow and the repayments are being recaptured in your system and you accelerate your debt to pay down all by implementing the infinite family banking concept. Here all those payments that are leaving you today flow back to the family banking system and you can build wealth, positive net worth by eliminating your family debt by implementing the family banking system. Man, that was awesome.

The case study that I'll be getting into right now is on an example where we have an investor. So in this case, case Corey. So Corey is 38 years young and he's a full time investor and he gets really excited about generating rates of returns over 20%. He does it through real estate and he's also able to achieve it through the stock and options trading that he does. Corey did the work in terms of researching about IBC and learning about what this concept is all about. And he really understands the long term benefit benefits of ibc. But the one thing that he did mention was as he was going through his learning journey was he was having trouble understanding the short term benefits of IBC or family banking. When you start with this concept and you get to take out these loans against your cash value. He noticed that the amount that he was taking out was in dollar for dollar of what he was putting in. So he was struggling to see that short term benefit. And so for him, he viewed this as a problem. A problem is not the problem. The problem is how we think about the problem with becoming your own banker. It's about improving the outcome by not focusing on what you buy, but on how you go about buying it, how you go about financing that investment. Everything that we do in life financially is a measure against how someone else is, is doing.

Okay?

We're always comparing to see how we're doing because we want to. It has to be relative, right? We have to see how we're doing versus how someone else is doing. And I'm talking specifically about investment returns here. Let's look at an example transaction. Okay, let's see how we can enhance the transactions for Corey by just changing that one step. And that step is the process of how we finance these investments. Okay, so we're not going to change. His objective objective remains the same. He still wants to go about investing and make those nice returns that he's doing. All we're going to do is we're just going to change the process of accomplishing that objective. So what's his objective? As I mentioned earlier, he, he invests in opportunities where the rates of returns he's able to get is 20%, 20% and over. So his current process of investing, this is how he does it, and this is probably how most of you do it today. Okay, you use, he uses his own cash in method one, or in method two, he uses other people's money. So in this case, a home equity line of credit, which a lot of you real estate investors are familiar with. So the rate I chose in method two is 7%, and that's give or take what it is as of today with the interest rates. Okay, so that's the number I chose, but we'll get into that in a second. So in method one, he uses his own cash. We're going to use 20,000 of his own money in this example. Okay, so the 20,000 is invested, earning annual return of 20%. So his gain is 4,000. Okay, very easy math there. Now, in method two, he's using other people's money. The HELOC that I mentioned, we're going to keep the numbers the same. So he's going to borrow 20,000 from his HELOC and he's going to invest that. That's going to yield 20% as well. So the total gain is 4,000. However, we got to account for the interest. And so the interest that I chose, as I said, is 7% on that 20,000. So you're looking at about $1,400 in interest. So the net gain then is simply 4,000 minus the 1,400. So you're left with $2,600 as the net gain. So the two options that I showed you, if you did, if you achieved achieve that, that gain with those two options, you did a fantastic job. You would be pretty happy with yourself.

Right?

That's a pretty generous amount of profits that you were able to generate with the amount that you invested in both options. In both cases, let's look at how we can make those results even better. A lot better. Changing one thing, the process, how we fund that investment. So using the family banking system, we take that 20,000 and instead of getting rid of it by using the CA, we take that 20,000 cash and we use it to capitalize our own system. So that 20,000 becomes the premium that enters into Our banking system to start it. So the starting that benefit Corey would get in exchange for the 20,000 that he deposits is 400,000. So right away, if I, if I pause there for a second. Casey, knock on wood. Something were to happen to Corey the minute he begins his banking system, how much money do you think he would receive if you were to become an angel? If you're thinking 400,000, you're absolutely right, because that benefit is going to pay out the minute Corey becomes an angel.

Okay?

So right away, there is that benefit that kicks in. If he were to become an angel. Contrast that with having the 20,000 sitting in the bank right now where you have it sitting. And if he were to become an angel in that scenario, how much would he be getting? 20,000. All right, so the immediate cash values that start building within his system is 10,333. Okay, so how do I know these numbers? This is from an actual policy. And then the daily cash value growth is approximately $8 per day. Again, this is based on actual policy that we looked at. And also we've been doing this for so many years that we can guesstimate to a close approximation based on how much you're putting in what the daily cash value growth would be in the first year. Now, the immediate loan available to Corey from the insurance company would be $9,300, 90% of CA of the cash value at any given given time. Now, the insurance company is going to charge an interest rate, okay? And so in this, in this case, they're going to charge 6.5% as the interest. The insurance company is in the business of making money, so they got to make a profit. And so that's why what they do is they actually determine what interest rate would be profitable to them, and that's what they charge, okay? And so as of today, that number is 6.5%. Looking at method three, using the family banking system, the policy loan is used as the cash for the investment. So the return is still 20%. The gross profit would be 1,860 in this case. So 20% on the 9.

3.

The interest paid to the insurance company would be $604.50. Okay? That's 9,300 times the 6.5%. The net profit would be 1860 minus the 604 and 50 cents, which will result in $1,255.50 in net gain. If we look of different methods, you may be wondering. Wait, I thought you said family banking would actually enhance the return. Let's look at what's happening? So in method one and two, the final outcome in terms of the volume of the gain was 4,000 and 2,600. Now in the family banking system, the profit was 1284. But that's not the final outcome because we have to consider what is still happening, happening within your policy. So when you've used the policy loan to invest, what else is happening within the policy every single day in that year, the cash value is still growing every single day because you haven't interrupted the growth of the cash value because what you did was you borrowed against it. And whose money did you use? You use the insurance company's money, that is the policy loan. And what the insurance company does is they hold, hold your cash value as collateral, which allows the cash value to still keep growing every single day. And so because you haven't interrupted that growth, that results in a tailwind of $8 per day for 365 days, which is $2,920 by the end of the year in additional cash value growth. So you have to consider that and add that to your final outcome. So if you look at your final outcome now, when you use the family banking system, you are now looking at a total final outcome of 4,000, $4,204, which as you can see is the highest among all three options. You cannot get a better rate of return investing into anything without first controlling the financing function. Using the family banking system, it's all about how you finance something and that thing can be anything. The example that I went over was investments. You can take control of any of these payments where previously in the first two methods the money is leaving you versus if you take control of the financing function, the money stays within you. Now the most common question that we get is can you connect me with someone on our team, on your team to take a look at my financial situation and show me how I can set up our family bank? Absolutely. We are, we are happy to help you set this up in your own life. And so you have a becoming your own banker call design. Just for that reason, one of the advisors on our team, our coaches on our team, would be happy to help you assess your situation and see what's best for you in terms of how you can implement this in your own life. And here's the follow up that you can expect from us. We'll stay in touch via your email. On that note, the emails that you do receive, we are pretty frequent in our emails that we send out. But we promise you it's never Spam. Everything that we send out, we send out value because that's what we believe in. We believe in adding value in every interaction with whether it's our prospects or our clients. You will receive an invite to schedule a time to meet. And if we don't hear from you, the right advisor on our team will extend a courtesy call to find a day and time that works best for you to meet. And if you prefer not to meet, that's fine too. Just let us know. And as long as you leave with a smile on your face, that makes us happy.

Let's go ahead and dive into more examples for investors. So again, we're talking about the family goals here. In this case we're looking at multiplication. We're looking at using the system to finance investment opportunities. Now we just talked about an investment there. And now this one again is just, this is a flip Philip example. So this joint venture team, these two gentlemen here, Philip and Manish, they are joint venture partners and they're what they're going to work on here is a flip. And so just a couple facts about these, these people. Philip's an engineer, he's 38 years young. He has a wife who's 39 and they have a three year old daughter. And Manish is a project manager, he's 39 years old. His wife is 36 and they have a six year old daughter and a one year old son. And so they are real estate investors and they've been investing in real estate since 2000, 2012. They've joined up on each of their investments. They've been working together that long. So they have a great relationship. And here's what's good about Manish and Philip. They are very coachable and they're always willing to learn. And so that's a pretty important aspect when it comes to the process of becoming your own bank of the infinite banking concept. There's no such thing as having arrived in knowledge. And if you feel like you have nothing more to learn as it relates to money or growing wealth, this is all about continuing to learn and grow and learn from each other. We learn from our clients, which is an amazing opportunity. Opportunity. In fact, we now have clients learning from clients. We have clients teaming up and doing joint ventures. It's pretty amazing. So they discovered the process of becoming their own banker, the infinite banking concept, in 2006 and they read Nelson's book. I heard a lot of people asking about the book. That's really key. Even if you're not a reader. It's a Great book to read. It's something to think about. You can read a section four or five pages and then go for a walk or do some work or watch a video, do something different. And then those ideas will percolate in your mind and your imagination will go to work so you, so you can read it over time. You don't have to sit down and slam through it and read it all in an afternoon. So here's some meeting facts that we discovered that they had no life insurance. They had a total debt of $1 million from bank loans for all their investment properties and personally owned properties. Philips annual income 120 and 130 and they have passive income of about $20,000 per year from previous investments that they do. And they do different types of real estate investing. So they do flipping. And that's what this example is about. They also have long term buy and hold strategy for cash flow. And then they also have implemented the BRRRR strategy which I'm a lot I sure a lot of you are familiar with, which I believe stands for buy, renovate, rent, refinance and repeat something to that effect. And then you. They also have gain cash flow the objective of to gain cash flow confidence and quit their 9 to 5 job. That's ultimately the goal, right? Have what I like to refer to as a work optional lifestyle. We don't talk about retirement here at Ascendant. We talk about enjoying passive income time. And so you may want to continue to work or expand or do some project or charity work. It's not about becoming retired and just sitting down and doing nothing. If you ever heard of what happens to a retired airplane, it's not all that attractive. So it's not about retirement. It's about enjoying passive income and having control over your time. Here's their IBC journey. The first thing that we wanted to do is we wanted to protect their families. And so what happened was Philip owns a $1 million 10 year term insurance. Now we haven't talked about term insurance. Term insurance is basically the equivalent of renting insurance. It's really inexpensive and you can get a lot of coverage. They bought a policy for just $416 for per year for a million dollar term policy. And the beneficiary is Philip. Okay, so Philip owns the policy on Manish and vice versa. Manish owns a policy on Philip. If Philip were to graduate, that is pass away, then the $1 million would get paid out to Manish tax free. And Manish will use the money to pay Philip's share of the real estate to Philip's wife to see. Isn't that just smart business? Any business that you're in, think about how is your family actually going to get the money out of the business. I don't think that they could. Let's say it was half and half. Minish would take, let's say 500,000 and either use it to continue to expand his portfolio and invest or pay off the existing debts and let's say 500,000 goes to Philip's wife. Do you think that they, without the life insurance, do they have 500,000 bucks just lying around to pay off Philip's wife? So now you have a whole host of problems if somebody passes away. Putting life insurance in place on business partners or key people in your business is just a smart thing to do. Doesn't have to be whole life. But term insurance is a good way to protect your business in case somebody were to pay pass away. And I would highly recommend also protecting your most valuable asset, which is your ability to earn an income. So you have to get yourself some disability insurance and some critical illness. We have lots of content and things like that on that as well. But we were infinite banking practitioners. But we're all life licensed advisors. So that means we're helping our clients. We're quarterbacking relationships with their tax professionals or their lawyers. We are helping them with estate planning and all things insurance related. So life insurance, disability, critical illness, we can support our clients with, with all those different pieces. Although our focus is the process of becoming our own banker. So they both have a policy on each other and if one passes away, the other would receive the money, pay out the other family members. So that's how that works. They started their banking system in 2016. The total premium for both Philip and manish combined is 50,000. Now here's the good news. Some people might see these numbers, 50,000, 100,000, even 10,000. I want to point out that we have clients that put as little as $2,500 a year, a couple hundred dollars a month into their policy system. And we have clients that put well over a million of dollars into their policy system. So it really depends on where you're at. It's not about building a $50,000 policy or $100,000 policy. If you put 50,000 in versus 10, the system will work harder. If you put 100,000 in, it'll work harder. But if you have 10, great. You start where you can start and you can build it over time when you have readily available pool of capital, an Ever increasing pool of financial value. Access to cash opportunities will definitely find you. They will literally find you. So in 2022, February, they had a house flip. So they were capitalizing their policy system. The property that they purchased at that time in Edmonton was worth 160,000. That was the purchase price and they needed renovation costs of 20,180 plus closing costs. The estimated fair market value of the of the home was somewhere between 215 and 230,000 afterwards. So the total cash value in the policy at that time was 313,000 in their system. And the policy loan available was 181,790% of the total cash value. The capital required was 180,000. So they had more than enough in their system to finance the entire deal. So the daily cash growth combined in the system at that time was $54 per day. Remember as that death benefit's expanding cash value is accelerating in the system. So it may not have started at $54 per day, but at the time it was $54 per day. Policy loan $180,000. And the interest rate at the time was 6.2%. And now the daily interest on that Policy loan was $30.57 per day, $917 a month on $180,000. Loan times by 6.2% divided by 365 using policy loan. They own the condo free and clear. That loan inside the the policy system is not on their credit report. You're already thinking what I'm thinking. Is there anything preventing these two joint venture partners, Philip and Minish, they could go back with their, with their solid income and their good debt ratios and all that stuff, they could go back to the bank. And couldn't they register a line of credit on that, on that condo or on that home if they wanted to. If they weren't flipping it, they decided to hold on to it. Couldn't they just go and borrow money out of that house to purchase more assets and create even more, more cash flow? They absolutely could. You bet. They own it free and clear. So they have total and absolute control over the repayment schedule as well. So they choose to service the interest only for now to keep the policy loan at the level that it was. See, the interest compounds on the loan only one time per year. It's simple interest. But so they wanted to service the interest so that the loan balance stayed at 180,000 and their interest cost was predictable. And keep in mind as they pay back that interest, they actually get to access that Money again, because they own the bank now, they have options. They could flip it if they found the right price. They could do a short term rental and delay flipping it if they wanted. They could do like an Airbnb situation or something. Analysis of a short term rental situation. The rent cash flow would be 1600 per month. Condo fees are $300 per month. So they have interest payment on the insurance policy or the policy loan of $917 per month. So the rent is 6, 1600 minus 300 from the condo fees minus the $917 of interest, which equals $383 is the net cash flow on that short term rental. So the cash value growth is still 1620 per month. So the total increase in their net worth every month is $2003 per month because of the cash value growth plus the rental income. In this scenario, every single month, $2,000 increases their net worth. So for $1,600 of rent, net worth is increasing by $2003. Now for those of you who are real estate investors right now, take some time to absorb that slide. This is what we refer to as the unseen. See, a lot of times we meet with clients and they go, hey, yeah, we want to jump in and show me some numbers. I'd love to see a policy design illustration. I can show you a million different policy designs and you will never see this show up on a of piece policy design because it's unseen. It is your imagination understanding the process and understanding the flow of money and thinking like a banker, you can see that this opportunity exists. But I can't show it to you on a policy design. We're obviously going to take you through and show you the policy design and how it works and all that stuff, but that's not the part. That's the number one concern. The number one concern is making sure that you have the right mindset and that you're how you're structured financially and what your objectives are and that you clearly understand the the problem, which is money is leaving you today and somebody else has total and absolute control over that pool of capital. You're not in control. More opportunity for the same property. More opportunity for the same property because they own the condo free and clear. Can you register a line of credit on that property from the bank? Absolutely. And can that HELOC perhaps purchase another property? Yes, it can. And if they sell the condo, can they pay back the policy loan immediately without penalty? Yes, because they're the banker and the bank owner. They have total and absolute control that's another thing to think about. You need to have capacity for windfalls. If you have a policy system or you don't have a policy system in place or do you have a policy system where your premiums are all paid up, you have no outstanding loans and you, let's say you sell one of your properties or do a refinance and $150,000 shows up in your pocket or in this case a couple hundred thousand bucks. Well, if you have nowhere to store that capital, it's going to be forced to be stored at the corporate commercial bank. So we want to have capacity for windfalls to store our capital within our system. Can they access the policy loan and use it again for their next investment? Absolutely. It would just sit in their policy system and wait for them. Growing at $54 per day, boo hoo. Until the next opportunity tracks them down. See, when you control the financing function, you don't have to have anxiety, you don't have to be in a rush. You can have a peaceful stress free life and you can, you can be patient, you can go look for opportunities. Opportunities. But you can literally wait for opportunities to track you down and take advantage of them on a moment's notice using the process of becoming your own banker. They can own two properties. Two assets have cash flow from two different properties. Tax deductions on the interest payments if they chose to do that while all their money is kept compounding tax free. If the unlikely event of death, because it is unlikely. But if it did occur to any of the joint venture partners, they won't be left with any indebtedness. The families will be be looked after, the partners are taken care of. So nobody's going to be left in trouble. Can you use the policy in future for retirement or passive income time, tax free? Absolutely. There are strategies and processes to get that done. We're not talking about that here today, but this is just again to get you thinking about the options that exist by implementing this process. It doesn't restrict or take away any of your options, it only enhances your options. This is Alan and Jan and Antonio and they're talking about their IBC story. I'm not going to read the whole thing. I'm just going to point out a couple of highlights. They said after three years of building our policies we already acquired enough cash value that we could withdraw. They said withdrawal. But by withdrawal what he actually means is request policy loan because you can withdraw again. But that's not what we want to do because that interrupts the growth Enough money from the policies to pay off bank mortgages on our rental real estate properties 13 years early. So just think about all that rental income that was flowing to the banks to pay the mortgages on those rental properties. Now they own those debts inside their policy system. So 100% of that rental income is flowing where now? Back to the family, back to their bank. It's not being trapped in the real estate, but now those properties are free and clear. So again they have more opportunity to go and access more cash, to go do more things and still get tax deduction and all the rest of it. That was a huge accomplishment knowing that we were now really using IBC as it was intended. For those of you who have children, your kids are going to go and finance cars, they're going to go buy houses, they're going to go finance businesses, they're going to get married. And that money has to come from somewhere. It can come from the commercial bank, their own hard earned cash, or it can come from the family banking system. Our oldest daughter and our son in law decided to purchase their first home. They were able to access loans from her partner policy. They were able to access loans and they have policies on their kids from her policy that we had started and also funds from our policy to buy their first home. So that's the family bank. It may come from some cash, might come from my policy or my son's policy or my wife's policy. It might be 10, 12 policies, it might be 30 policies. But it's one family system. It's one family system. CIBC or TD or Scotia, they have any number of branches. But the fact that there's different branches and different companies, it's all just one banking system. It doesn't matter what country it's in or what, what company or what bank, it's all one banking system. Much like your family bank, it's one system to buy their home as a cash deal with and not have a mortgage from a traditional bank. So they literally became the banker. Currently they are making payments. Now this is key. This is not a handout to your kids. It's still a business and it's still the banking process. If they borrowed the money from a commercial bank, they'd have to have to make a payment. So they're making a payment back to the family system to pay back the loans instead of the bank. Thus the idea of keeping the money in the family. And the reason why kids would want to do that is because if they understand the process, they know that they can continue to come back and borrow even more money from the family to do more things, finance the things that they need in life. And then if things are structured correctly and we have good conversations as a family, the kids are actually going to get way more back out of the system than they ever put into it because of the taxes free windfall that I'm going to leave behind to my kids, or in this case Alan and Janet are going to leave behind to their kids. So all that windfall is going to come back to the kids and the kids will use that capital to continue to service their existing policy system and expand the system and buy more policies for themselves and their own kids and potentially their grandkids. That is indestructible generational wealth. We want to create generational wealth. Well, at ascendant we want to help you create indestructible generational wealth. That is the main important objectives. So the whole idea behind sharing these examples was to help us all understand that we can actually invest less and earn more using ibc.

What we've gone through in terms of family banking today was going through financing family comfort, which is cars, vacations or investments, and talking about it in the components of debts. The last part I wanted to talk about was keeping taxes away from your wealth, especially as it relates to jobs generation. We heard a lot of the importance of everyone building their real estate portfolio and the reason for it was because they wanted to leave, let's say some of the testimonials we were hearing or the stories and success stories where they wanted to leave the corporate world so that they could spend more time with their family. They wanted more freedom or they wanted to get their time back. And so we've showed you how you can use your family banking system while you are alive today to do the things that you are already are you doing. Let's just assume you are a business owner. This is really going to appeal for people, especially if you're corporate business owners or real estate investors with properties and corporations. And so you want to make sure that you actually take really good notes here. You're the management team who produce these results. Now you have a, you're a business owner and you have a business. This is the results that this management team created at that time in 2014-2015, revenues were 282 2.3 and expenses were 280.4 and a profit is 1.9. Pretty straightforward. Revenues higher than expenses and your profit was 1.9. Something changed in 2015-2016. Maybe you were unsatisfied with the profit in your business. So you changed the management team. And when you change the management team, the revenues were 295.5 and expenses were 296.4. And this management team created a loss. You know, it's pretty normal. I mean, if you change a management team, they have to get used to things. So, you know, yeah, maybe there's a loss. The second year, revenue slightly went up to 93.5 and expenses went up also to 312.5, which created a loss of negative 19. The year after, revenues went up 313.6 and expenses went up 332.6, which still created a loss of negative 19. The revenues in 2018 were 332.2. The expenses were 337.8, which created a loss of negative negative 14. In 2019, revenues were 334.1. Expenses were 362.9, which created an even larger loss of 39.4. This management team's track record doesn't look really good so far. And then if we look in 2020 to 2021, revenues were 316.4 and expenses were 628.9 and the loss was 327.7. How would you, would you feel about this if this was your business? What would you do with this management team? Would you keep them or would you fire them? Here's some really, really simple math that a lot of people are aware of. If revenues are less than expenses, and if you have no cash available, then you have to use debt to spend, so you're forced to increase your debt. Well, I have some really bad news for you when it comes to these, these numbers that I just went through with all of you. These numbers are real and they're in billions of dollars. So who is this management team that I'm talking about? The Canadian government. More specifically, the recent one being the Liberal government. Let's dive into this government taxation system. So how serious was this situation, or is this situation and all of this information that you see in front of you is straight from the government in Canada's audited financial, financial statements. So let's take a look at these all together. When the government took over from the Harper government in 2015-2016, just looking at the profit of what was created and the debt that was there at that time, $1 trillion. If you take debt divided by the profit and pay it down bit by bit, that was going to take 538 years to pay. That back this number is so large, it's actually really hard to dive digest. So let's just think about it. Most Canadians live until they are 85 for male and 88 for females. So one generation working and them taxing at the rate that they're taxing is not going to pay this back. You need at least five more generations along that just to pay that off, or five more life cycles just to pay that off. Now, in each of the years afterwards, it was losing money every single year. So I can't even catch calculate how or when that debt would actually get paid off. So if one generation is 25 to 30 years in that first year in the previous Conservative government, that's about 18 generations right there. Now if we translate it to 2020 to 2021, the debt ballooned from 1 trillion to 1.6 trillion. Let's kind of take that back back a little bit. Since Canada has started and they had financial statements with debt, the government had $1 trillion in debt. So that's over a hundred years, 1 trillion in debt. In a short six years that debt went up 600 billion. So who's paying for this debt? It's you and your future generations. So if the main source of revenues from the government is taxing citizens, here's what they are already taxing. Taxing you on income taxes. Every time you are investing your time or spending your time working for your employer or working in your business, you're generating income. That income that you accumulate is what you are building wealth on. That income that you generate and you accumulate the government is taxing you on. So they tax you on income taxes. They tax you on corporate taxes. They tax you on the dividends that you receive from your assets. They tax you on the capital gains that you earn on selling those assets. They tax you on past passive income like interest. But what else do they tax you on when you spend the money? So when you don't even keep the money, you have to spend it. And this is how they'll tax you. They tax you with on your GST and hst. They've introduced and expanded and grew how much they're charging you for carbon taxes. If you have some bad habits like alcohol or smoking as an example, they'll tax you on the sins that you have. They call themselves sin taxes. What about what you have? Well, they're going to tax you on what you have. Like when they recently introduced two years ago the luxury vehicle tax. If you own a car or purchase a car that's over $100,000. It's too much. They want to tax you on that, that property that you have. They want to tax you on that property, those property taxes. Now if you're in Toronto, some of your property taxes are at least 7 to $8,000 and even a property higher than that. So with this load of debt and rise in interest costs, how do you think the government is going to pay you? If they are not making a profit and they have this amount of debt, how will they pay for it? Are you going to tax you more or tax you less? They're just going to tax you more. And not only just you, it's your kids, your grandchildren, your great great grandchildren. They're just going to keep going down that, that chain to pay for the debt. Especially since this government spent already increased $600 billion more than the lifetime of Canadians debt, the government's debt in the past. So this is how you feel. Soon they're probably going to start because it's no longer free. They believe that they're going to start taxing your air. That's why they have all these wonderful carbon taxes. Soon they'll probably tax you on the water, water that you drink. If you've gotten the book becoming your own banker on page 29. One of the really wise things or quotes that I have from Nelson Nash is that the government, lawmakers and bureaucrats who carry out these perversions of law fully understand that they are dealing with a parasite host relationship. They are the parasite, we are the host. And what happens is government is not capable of producing anything. They say that they've created jobs, they say created the policies to incentivize jobs. But the entrepreneurs or the business owners are the ones who are actually creating the jobs. So they are the ones that gets all of the sustenance, what they need in the form of taxes from the productive element of society. So government is the parasite and lives off the productivity of taxpayers, the host. Now, what they may or may not know, I'm pretty sure they do know, is that if the parasite takes all of the produce from, from the host, they actually both die. Now what you also may not know is that the more income you earn in Canada, and you'll hear this, that the more taxes you will pay because you need to have your fair share, as they claim. Here's the proportion of not just income taxes, all of the taxes that you earn in the form of spending is going to the government, 43% of it. So every $1 you, you make 43% of that goes to the government 35.7 goes to clothing, housing and food. And then there's 21.3% in others. This is nationwide for Canada. If you're in Ontario, let's say you have a mortgage right now, if it's variable, fixed, doesn't really matter. But if you look at the volume of interest that you're paying on your debts, if you add up how much you pay in interest, you add up how much you pay in spending and earning, taxes added together, I wouldn't be surprised. And for clients of mine that I've worked with, they're not surprised that maybe over 50% of all of their money is going to someone else. And that is for a lot of people, a problem. Here's a client family of mine that I wanted to introduce to you as it pertains to the family banking system. Obviously this is not their real name, this is not what they look like, but they are husband and wife and they have have two children. What I enjoyed working about working with them, aside from them being a wonderful family and sharing many of their personal milestones with me. Immediately after attending one of these sessions, they took massive personal action. They reached out to help get more information about how this concept can apply specifically to them and after which I've suggested some videos for them to get some more education and learn and of course learn and read the book becoming your own banker from R. Nelson Nash. Once they've gotten their background and their information learning about this, they immediately book that meeting with me to learn how the concepts I shared with them was going to work for them. Now my first impression just starting with them was that they were very eager to take control of building their own private wealth because they were tired of being taken advantage of. They already had an idea that they were working harder, they were earning more income, but a lot of it was not being left behind. Something was wrong, they didn't know what it was. Another part of the of their goals was to build multi generational wealth. So now we understand the context of where it is. They were already struggling currently because of the system and how they were currently doing things and they were looking for different ways to build their wealth so that they could keep more of it for their children. And they don't want their children to go through the same challenges that they're currently going through now. Their situation situation may be similar or different than yours. And this is what I want to stress the importance of why it's important to schedule time with our team members and coaches to make sure that your Specific answers can be, we can give you specific answers to your situation so you have clarity on your situation. So let me tell you a little bit about Harvey. Harvey's 47 and he's a mechanical technician and earns 150,000 as a self employed individual. Now he saves 25,000 per year into his RRSP which he's accumulated so far, 250,000. Jane, age 45 is a teacher and now she earns $100,000 with a school board and she's maxed out her TFSA at 81,500. It's a little bit higher than it is now today, but nonetheless I just wanted to give you a reference of this snapshot when they've met with me. She saves 25,000 per year and because of, of the employer that she's with, she also gets a divine pension with a, with that pension plan that contributes 1,000 per month. They have two children, Shane who's seven and Grace who's five and each have their own resp with 12,000 each for 24,000 in total and they contribute 3,500 each year. Now let's just kind of take a really big summary of what they currently have in terms of assets and maybe you can relate to it. So I just wanted to highlight the first in terms of their asset is principal residence which the cost and what they pay for is 500,000. The fair market value of it at that at the time that we met was 600,000. So unrealized they had $100,000 of a gain if they decided to sell the property. On the property they had a mortgage for 390 with four years left in terms of the term, not the amortization period, the term of it before they had to go through, through renewal. They also expressed to me their concerns with where the interest rates were going. And now if we look back in those couple of years since we met, they were not wrong in terms of their concern. Their down payment on that property at the time was a hundred thousand dollars and the payment that they were making was 1,880 per month. They've also invested in some real estate with property, with the property. One that costed them at the time 200,000 and a fair market value that jumped to 600,000. So their gain on unrealized was 400 and a mortgage of 165 years left on that term and then down payment for 40,716 75 and.

They had a second property for 400500 in terms of fair market value, the gain 1 million mortgage 325, 80 and 1436, 94. All of these details. I just kind of wanted to share with you a real case study of the snapshot that they are in. They look very, very strong as a family. So here's a kind of a quick summary of their wealth, which is 250,000 on the RSP, 81,000 on James TFSA, a principal residence gain of 100,000. Property 400, property 100. Total wealth is 931, 500. And as the current rules that are right now in the Income Income Tax act, well, the TFSA is not taxable at 81, 500. The principal residence is not taxable on the gain of 100,000. So what's exposed for tax in terms of the wealth that they've built is 750,000. Let's take a little bit of a recap of their objectives. So they wanted to build. Well, so Harvey and Jane had enough for their retirement. They wanted to remove their exposure to the temperament of the financial markets. As you can see, especially Harvey is of kind concerned since his RSP has taken a large hit. And just to give you a little bit of transparency, for his 250,000, one of those years took 10% of a hit. So that's a loss of 25,000 in terms of a decrease in value. So he just lost one year of his contributions that he normally made. He wanted to leave as much of their wealth behind for their children. You look at this family and you're wondering, look, they look so strong as a family for financially great assets. They're following exactly what the financial gurus have been sharing with them. But something wasn't right. They were still not getting ahead. Spending was increasing, like at going to the grocery store. Interest rates were starting to rise. It didn't impact them, but they were very concerned about that. So if you're still wondering why they're not getting ahead, here's probably why. There's two other individuals that look like that. They're taking their money away. The bank banking system and the government's system. And guess what's left behind for them? There's one important thing while they're going through their challenges today. There's a ticking time bomb that most people don't actually pay attention to because they're so focused on accumulating and building wealth today that they want to leave behind for their future generation. They often neglect this when they're building wealth because this is something you can't avoid. That's death. And let me ask you this question. What percentage would you put or say that you would pass away? 100%. 100%. Exactly. So you know you are going to pass away. Wouldn't it make sense to reduce your exposure and fix that problem and minimize what could happen to you, what you're passing create tension or stress on your loved ones. And when it comes to someone passing away, there's a financial component that gets involved. And some families get torn apart fighting for their fair share. And guess what? You think it's your family. You also have some unwanted family members that want their fair share of your wealth. And no, it's not this family. It's Uncle Trudeau and Auntie Freeland of the CRA family. And what a lot of you may not not know or you may heard of it in passing is that they've wrote legal rules on the fact that basically everything you own, they're going to get a piece of that. And the determining point is when you pass away, they're going to send some notice telling you that if you, if your death passed away in January 1st to October 31st, they want to be paid April 30th. And what happens if your death was in November 1st to December 31st? Well, they want to get paid six, six months later. Now, before I dive into the mechanics of what it looks like for death and taxes as it relates to death, I want to highlight something. Wherever wealth resides, someone is going to try to steal it. And this is William Sutton's law. So let's talk about the problem. When you become an angel, the government's going to swoop in to ensure that they get their taxes from your wealth in front of you. Lies, death and taxes as a problem. And the name that they call it is called Deemed Disposition. What is deemed Disposition? Well, at death, the government considers all of the capital property that you own, whether it has exchanged hands to someone else. Like when you own a property and you sold it to a third party, that is when a lot of people recognize that they disposed of it or gotten rid of the property. Well, when you pass away, they will call it deemed, meaning they're just going to going to call it, you sold it at that time. So they're going to deem sold at fair market value. Now, if that fair market value that they deem it at is higher than the cost you acquired it for, that creates an exposure that you must pay taxes on that increase and I'm going to say exposure or a liability to the government that you will need to pay taxes on. So the deemed disposition is even when you transfer the property to your children, you're going to need to pay taxes on it. It doesn't mean it's kept in the family. Their children are not actually considered your quote unquote family. So they will want to get paid taxes. So they're going to need to pay taxes on those assets that have built wealth or accumulated value, which is what your whole intention was. And in that deemed disposition, you're going to pay the taxes on it within that year. So remember I told you by April 30, if you passed away before October 31, the government wants to get paid. And the way that they want to get paid is by money. So if everything was tied up in real estate assets that you need to liquidate, then you need to sell them to pay for your tax bill. They accept no substitutes for money. So no building, no equipment, nothing. They want the money. And what if the time that they want the money doesn't align with when you want to sell the property? You don't get a choice. If the property values went down and you want to keep it and let it rise back up, you don't get the choice. They're going to penalize you for it. For the Spectre family, there was a ticking time bomb awaiting for them. And for most people, this is a part that is heavily neglected. So I would say most people have a ticking time bomb relationship related to tax exposure. Here's here how much they would pay if they both passed away. Now, here's approximately how much taxes they already would pay. Let's just assume Harvey lived and worked the full period of that year, while he would have earned 150. And the taxes he would pay on that 150 would be $50,000. So he has, after tax, $100,000. Jane very similarly would have 27,000. So, so together, just under earned income portion would be $77,000. And then some unfortunate event happened. Well, this is what taxes at death would look like. Here's the property that is taxable. There are RRSP. The taxable value is 250. The property first property. In terms of the rental property, the taxable value is 200,000. So remember 600, subtract 200 what they initially bought it for. In terms of the tax rule, half of the capital gains would be taxable. So the full 400. Half of that would be 200. So 200 is taxable property, 2 is taxable value is 50,500. Subtract the 400, 100,000 gain, which makes it 50,000 taxable. So the accumulation of all of the taxes that they would pay added up all together would be 229,018. And so here's their taxable wealth, their income earned 250 taxable wealth on 750 worth of assets. That total taxable wealth is $1 million. So if we look at the taxable base of what their family is exposed for taxes, here's what Spectra family would get after taxes. 693,982 69%. The government, in terms of what they would get would be 31%. So the family got taxed a little bit more than 300,000 thousand for being successful in building wealth and transferring it to their children. So how do most families who neglect proactively planning for this pay for it? They use their existing wealth of assets that they've accumulated to pay for it. And now you may have heard while you're young, get some insurance so it'll protect you against your debt when you pass away and you have this debt. That is one approach to deal with it. Or you don't need to pay for the insurance anymore because you're going to build some so much wealth it'll be enough to pay for those taxes. Well, let's look at it from this standpoint. The RRSP and TFSA minus the taxes they pay on assets is the remaining cash for the family. So if we take the 250 of the RRSP, 81,500 from the TFSA, subtract the taxes that they would pay on the assets portion with 229,000, so that's 102,000 left for the family. The government split could go even higher than 50, 50% because a spectra family did a very good job in diversifying the assets that they've held and didn't concentrate their assets in something like RRSPs, they at least paid less of a share to the government because of the capital gains tax. What if it was all concentrated in the rrsp? The taxes would be even higher. The split with the government would have been even higher. How does it feel that along the way while you are trying to to build and work on your family, trying to serve and provide for your family, that along the way you are building your wealth and each step of the way there is a weight that is that you're carrying that you are getting taxed and taxed and taxed and this was just taxes today. Imagine what taxes would be like in the future. This is not unprecedented in the 1990s, the capital gains tax was 75%, not 50%. If we look at the situation that the government has put themselves in, in terms of how much debt that they owe and the interest that they're paying, at the high interest rates that they're paying right now, the only source of revenues that they have is taxing the citizens. Now that was just the tax problem. Let's talk about another problem. When you qualify for mortgages, for those of you who have qualified for any debt, what do they ask for? They ask you a laundry list of, of information. And some of the laundry list of information that they ask you is how much income and what is your history of your income for the last two years or so on and so forth. Whatever they want, they're gonna, they're gonna get if you want the loan from them. And now in the situation for the Spectra family, for them to get the mortgage that they've got for their principal residence and the rental properties, they needed to both submit their T slips for their income. And the property was used as collateral, but it was based on how much they earn so that they can service the payment. Now what happens when Harvey and Jane are actually not here anymore? What actually happens next? So if I was a bank and I lent money to two people who generated income that was sending their payments to me, that's my asset. And suddenly there's a threat that they would not be able to pay anymore because they're, they're not aligned. The banks are going to feel threatened because where else is the income going to come from? Where else is the cash flow going to come from to fill their asset? It's not going to come from Shane and Grace, who are 7 and 5, so they can't pay for the mortgage. What are they going to do? They're going to immediately demand for the mortgages to be repaid. Now, I know a lot of you who are real estate investors. I'm not sure if you've actually looked into the 99 page documents that come with your, your mortgage. But as part of becoming your own banker, one of the equations that we talk about in terms of the role we want to play is become the banker. Because when you're the banker, you get to set the rules. And so in those mortgage documents, they set rules that basically if they don't feel comfortable, they can ask you to repay loans. And this is just one of those situations that they don't feel comfortable. They know they won't have money to repay the loans. So they're going to Ask for those loans to be be repaid. Let's take a recap of how much their mortgages were. The Spectra family principal residence property 1 and 2 added up to 502,000. So after they took their most liquid assets to pay for the taxes, they have 100200482 left in cash. Well, where is the 582 that is going to come from to pay for the mortgages? The family doesn't have enough money to pay for those mortgages. Mortgages. So the children are actually not even left with a choice. Could you imagine a seven and a five year old or their guardian that they are responsible for needing to go through this? The children are going to end up forced to sell and lose one of the properties that the parents worked very, very hard to work for to cover those mortgages. Now you remember the objective was to leave as much of the wealth behind for their children. Clearly we can see that was not achieved as part of their goals and objectives that they were in terms of their current journey of building wealth. That's why they came to me at Ascendant Financial. They wanted this goal and objective achieved. And as their coach I'm here to help them with that. All of your life's work, your blood, your sweat, your tears, your sacrificed miss ball ball games, hockey practice, dance music recitals that you've missed because you had to take on more shifts because of the rising cost of living or the rising interest rates in bank. Just think about all of those special moments that you've had to miss because you had to work. The banks and the government have built back doors to take away what wealth you've built. So on your journey of building building wealth, you're focused on the front end, on how much you've built. But maybe you've forgotten about the back end, that back door. Because it seems like to me at least you're doing all the hard work, you're providing the fuel, the money that you're sending to the banks, the money that you're sending to the government, it's leaving you, that's fuel to get them wealthier more than you. And something is not right. And so this is the part I wanted to highlight that this is about the systems want you to keep your money within their system so they can keep getting paid. And not enough attention is being focused on keeping the money within your family. It's not about the next best investment, it's not about what's trending right now. It's about keeping focused on keeping the money within, within the family. Most people have this illusion. You know what, I'm just going to keep my costs low with term insurance and not saying that there's anything wrong with term insurance for a lot of clients that I work with and we work with at Ascending Financial term insurance is part of the portfolio of wealth building, but it's not the only thing that should be in the portfolio. What's counterintuitive is death, as we've already agreed. That is it's a permanent problem. You are going to pay, pass away 101% of the time. You're going to pass away. And if you don't pass away prematurely when you get older, the term insurance gets so cost prohibitive that it doesn't even make sense for you to pay for it anymore. And like I said, term insurance can be, when properly used, is powerful. But wouldn't you want a permanent insurance to solve a permanent problem? You may recognize this individual and he had a really famous quote that said everything around you that you call life was made up by people that were no smarter than you. And you can change it, you can influence it, and you can build your own things that other people can use. And this is what the concept of becoming your own banker should be about. Having that control, building your own system so you can flow the money in, work with your family to help them get ahead, using your family's system to help some start them up, whatever your goals and objectives are. So let's talk about some of the solutions. You probably know that the solution is actually really simple. If we eliminate all of the noise that's happening, it's actually really simple. Minimize flowing your money away from you and stop giving your money to the banking system. It's not going to happen overnight, depending on where you are on your financial journey. But at least if you take the first step to get there, start taking the next steps incrementally, one bit at a time. And you will believe this and you will know this, that is absolutely. It's possible. And you know what? Just because of the tool that we use by virtue of you building your own family banking system, it already does some other amazing things like minimizing the government's involvement in your wealth and you can get them out of your life and at most limit them to when you need to use them. Like when you want to use, use them for the ABM machine for debit. Unfortunately, you can't completely not use their infrastructure because just like the government who created the Income Tax act, when you pass away, you must give Money to them in the form. The banks have also cooperating with the government created legal rules that money must flow through them in their infrastructure. So you can avoid it completely, but you can be very mindful of minimizing your involvement and using it. Deemed disposition taxes at death unfortunately can't be avoided. Just like you passing away can't be avoided. And they've written that in. So because they've legally designed for you to pay, here's what you can do if you proactively now you know what's coming ahead. Proactively setting up a plan. You can prevent using your wealth that you built to pay for it. So let's look at at how I worked with the Spectra family to build their banking system. Determined the amount with them, how much they would flow into. Starting their system, implementing and constructing it in a way so that they could keep taxes away from their wealth and have their wealth continue building without needing to sell their assets that they've built. The strategy here was to implement a properly designed participating dividend paying whole life insurance policy with an authorized infinite banking practitioner, which is us. Build the Spectra family banking system without increasing their cash flow commitment. Harvey was already saving 25,000 into another bank. Getting locked. And if you needed to withdraw, you get taxed. I just changed the direction of where he was flowing the money and changed it to his banking system. Jane was doing the same thing. 18,000 was going to TFSA. RESPS was selling 7,000. We just changed the location of it going instead of there to go to the family banking system. Again, this is not to say that they can't put the money back into the RSP, TFSAs or RESPs. But we just changed the sequence of where the money was flowing first. If we look at the family banking system, Harvey and Jane was taking 25,000 of their existing cash flow. I didn't ask them to commit any more than what they were all already sending away for building their future. And all they did was relocate what they were sending to their family bank. That I constructed in the form of four policies. 25,000, 18,000 3,500, 3,500. Remember their family wealth in totality was 931,500. And remember at death they were going to pay in the form of taxes. 306,000. I just rounded the number numbers nicely. And mortgages of 582. Guess what happens in the first year immediately, as soon as they funded their policy, they will have access to cash. There's no waiting. There's just a simple no qualification. Press a button on their portal, request a loan, money is available, they have access to a portion of their cash value, that policy loan. And what gets left set up immediately as soon as they funded the premium is that they've contractually bound the insurance company legally to pay them when they pass away a death benefit of $1.1 million or 1.2 if I want to round it that way. So their wealth would increase 296,000 in year two. This is what it would look like because they're very much understand their system. They're still sending the same 50,000. And this is what happens to to the system. It increases. The cash value goes up. The policy loan that they can access goes up. The death benefit that they're going to leave behind goes up. And because of that increase, the wealth for the family goes up even higher to 424. An extra 424. 024. And let's look at it from a numerical comparison in terms of the total family wealth. If we look at it on the left side, remember that family wealth with no Family bank was 931,500. 500. Here's that's going to be taken by the bank if they passed away too prematurely. There's no way around that situation. They entered into that legal arrangement with the bank already to get those properties. There's no way around that. Here's what the government is going to take in terms of taxes as it pertains to passing away. Again, no way around it. Legal, legal, binding arrangement with the government. But there's one column, one row that I wanted to highlight, which is the death benefit insurance. Insurance of zero. They didn't have any death benefit. So after going through paying everything out, their wealth that is remaining for the families 43,482. So their wealth decreased by 888,018. But if we look at just immediately installing the family banking system, they have death benefit of 1-184-647. If we look at how much they have to pay 888,000. There's a death benefit insurance of 1.2 million for the family. So their wealth actually increases 1228129 or what remains at 1228129. So their increase actually goes up 296, 629. So this is what happens when they have worked with the right team in the case, let's say it's me. So the family gets to keep the arch rrsp. I mean if they want to continue it, they can they have the choice to not that they're forced to, to settle debt or settle liabilities with the government. They get to keep the TFSA, they get to keep properties 1, 2 and their principal residence. The children do not need to have their properties sold to finance the mortgages. Wouldn't that be, isn't that what most people want to leave their children in if that was the requirement? And you know what the best part for the family is that they can actually stress less now. Everything I went through with you was related primarily for the personal environment. And when it comes to building the family banking system, there is the personal family environment, but there's also the corporate environment. So for corporate business owners or real estate investors who own real estate in corporations, while the deemed disposition tax problem at death is even worse with without the family banking system, whether you own a holding company or an operating company or any complex company structure, this problem is actually even higher. And this problem could be where the government is getting 74% of the value of the business in the form of taxes, whereas the family in the corporation asset is only getting 26%. And by implementing the corporate family banking system, this solves multiple problems. First is you can actually buy bypass a 50% passive income tax rule. And so if you had a $50,000 deposit that you were putting towards a family banking system, I know the lines are a little bit thick and it's hard and it looks kind of the same, but over time, the blue line being the cash value, this money is growing tax free in the policy because it doesn't meet the definitions of what the government considers as income. So it doesn't get taxed. Whereas the GIC after taxes you start seeing a really, really big difference. And not only that, that capital is growing and it gains momentum over time. So if we look at a regular banking system on the left side, let's just assume the Spectra family had a corporate banking system at year 30, there's a buildup of 2771725 on both sides and you deposit 50,000. This is that momentum I wanted to to share with you. In the regular banking system we're so used to take what you have, add what you put in which is a 50, it's 28, 21, 725. What about if it's your own family banking system, you've been loyal with them for 30 years, there's a tailwind specific to their tailwind, their cash value goes up 29, 37 to 80. If you have a location where you put money in that increases almost $150,000 more than what you you put in. Would you ever want to bank in a normal banking system anymore that you don't own? And look at the difference, it's 115,000 in this example. So when IBC is implemented in tandem with tax designs, it can change the final outcome of taxes paid to the government at deemed disposition from 26% and 74% going to the government and structure properly along the way. And this is what we at ascendant financial work in collaboration with other strategic partners of ours, we can shrink the possible possibility to 12% going to the government and 88% is retained in the family. Isn't that awesome? People who own corporations, you know you've got to draw a salary or dividend and that gets taxed at your personal tax rate. Well, if you've accumulated significant capital in your corporation when you pass away, how else will you get it up? Well, at death, significant amount, amount of money with the family banking system can be created where you can exit money and get it out of the corporate corporation, bypassing the personal income tax rule. Believe it or not, there are actually rules that allow for this to happen, but it has to be set up properly. Let's say you want to bring your children into the business and you pass away. You can pass on your wealth in the corporation to your children tax free. And they can draw money out in the form of tax free dividends. Tax free without paying taxes on the salary, without paying taxes on dividends. But there's a special dividend called a capital total dividend that can come out and pay them tax free. Wouldn't you want your children, your grandchildren or your future generations to go through having that ability set up for them? So for corporate owners while you are alive, you can bypass the 50% tax, passive income tax rates. You can have a storage of capital with liquidity that you can tap into with a simple button that you press in your portal. And when you go graduate, I want to share something with you. So all of you that you've learned today here recognize that the government has legally imposed rules on you when you pass away. And you will likely pay tax on. You can complain about it, you can protest with the government and hope that they'll make a change. And these are some of the possible consequences that could happen. Or you can start today taking control in your hands and working with the things that you control, which is you. And for the corporate owners, you can have these insurance company pay for your deemed disposition responsibility. You can have your money extend out of your corporation to your children personally, tax free. You can kickstart your journey to build generational wealth. Because family banking is not just a personal or a corporate thing, it's everything. Creating the family banking system needs understanding requires discipline to implement the idea it can change your life dramatically, even beyond your fault. Fondest Dreams so if you're a new client watching this, or if you are learning about what this concept is, or you're an existing client, what are your next steps? Text the words schedule to 780-809-4599 and reserve a day and time that works best for you. We know that it doesn't matter where you start. When it comes to the premium amount, how much money do you want to put towards solving the problem? That is, that is really what it is. Because no matter what, when you start right away, you are going to feel great about it because it is going to work immediately. Now this all sounds great and I want to highlight the importance of not doing this alone. Because when you schedule call, you're going to have an authorized Infinite Banking practitioner meet with you. And not only that, we want to make sure you continue investing in your education. And you have lifetime mentoring opportunities with us, which is quarterly group coaching sessions. We constantly turn out content, whether you your form of content is audio, like our podcast Wealth Without Bay street, whether it's through reading. And we have a wonderful lot of books that are available for people to read. And we have our YouTube channel where you can learn a lot more of our how this concept works with case studies and specific things related to paying off debt, financing cars, investing in real estate, whatever it is, you'll find a plenty amount of resources that we provide. And then there's the powerful option of coaching. This is the part that really sets us different than any insurance advisor or anyone who says they know how to create a policy. Because once you create the policy, there is still the element of using it. Because we want you to be a bank. We don't want your cash sitting there. It's going to grow every single day. That is the thing that it's going to do. But how do banks make money? We want you to be the bank. We want you to become your own banker. Put your money money to work. You do have options. The first option is to do nothing. You've invested a good amount of almost three hours of your time today to come and learn about this concept. And if you do nothing, you're going to continue working your butt off for the banks and everyone else and all your money. You've been informed that the power is in taking control of your money and keeping it within the family. Now if you're happy and content with having your hard earned money leave you to the bank's in the government, that's you. That may be your choice and that's okay, we're not dictators. Or you can take the second option which is schedule your discovery call, take hold of your personal finances and put the control back in your hands. And this time you invested in your education. If you want to return on the time that you invested in the education, then take action. No one's going to lift the phone for you to do it. And if you're an existing client and the content that you've gone through today, investing your time really open your opened your eyes. You may have discovered more ways to keep wealth within the family. You don't have to now think about this on your own. Tap onto your coach's shoulder. Schedule a meeting to start evaluating your family banking system to find out ways where we can help you free out more cash flow to build your banking system. So text them, email them, reach out to them. So if you're committed, what would you do? Picture a day when the the control is in your hands. Not a bank, not the government, not the risky stock market. And when your finances are exactly where you want them to be. And you know with certainty that you have the freedom to travel when you want to travel, relax when you want to relax and serve when you want to serve. Because everything is easy when you know the how. And our CEO Jason says have the banking process work for you. Have the money come for you rather than against you.