Becoming Your Own Banker | Multiplying Wealth Through Crypto Mining & Effective Cashflow Management

The only behavior that you can control is your behavior. You can't control the behavior of what happens in the financial world with the stock market, crypto, Bay Street, Wall street, real estate. That is not in your control. But by adding one extra step to what you are already going to do, which is welcome to your educational session on multiplying your wealth through crypto mining and effective cash flow management via the infinite banking concept. Let's dive right in. In today's session, the agenda we're going to cover a brief introduction to crypto and crypto mining. Cover the basics, the ABCs really build a foundation in that world for you. We'll cover some of the terminologies as well that is involved now. After that, we will dive into a case study where you will see an example of one of our clients who used IBC to enhance his returns on crypto mining investing. So we will get into that as well. We're not covering how to build a house, but the reason I have this slide here is we're going to build a foundation. This session is about building a foundation not only in crypto, but also in the infinite banking concept, which you will see later on as we get through the presentation. Questions are going to come up and that's fine, that's fine. Questions is a good thing. Questions help you get more clarity on certain things, which is great. What is cryptocurrency? Cryptocurrency is a digital or virtual currency. It is secured by cryptography. Cryptography is the art of securing information using math and code. This math and code, the art of cryptography, is what makes it nearly impossible for counterfeiting and double spending to occur. Now, what is counterfeiting, you may wonder? Counterfeiting is, as the name suggests, it's to imitate something that is authentic or to duplicate it. And so cryptography solves that problem because it doesn't allow for any cryptocurrency to be replicated or duplicated. Double spending means that the same units of a cryptocurrency could potentially be used twice.

Most cryptocurrencies are decentralized networks based on blockchain technology, which is a distributed ledger that is saved and updated on a network of computers. All right, so let's unpack that sentence. There's a lot going on there. Let's start with distributed ledger. It is essentially a virtual document that records transactions that take place on a particular cryptocurrency network. For example, if I were to give one unit of a cryptocurrency to Sarblo Okay. And it all happens digitally. If I were to send him that, then when Cerblo receives it, that's a transaction that has occurred. That transaction of me sending one unit of a cryptocurrency to Cerblo is then recorded on a document which is called a ledger. And that ledger is stored virtually on a cloud somewhere. That ledger is what makes up the blockchain. The blockchain keeps a track of all the transactions that take place at any given moment in one particular cryptocurrency. So every cryptocurrency has their own blockchain. Now, this ledger, the reason why it is called distributed is because there is no one person or authority or party that controls this ledger. The way to put an analogy to that is if you look at a transaction you may do at a bank, for example, if you were to deposit or withdraw funds, those transactions that you make, that's recorded by the bank on their own left. But the key there is it's controlled by an organization, a third party. Whereas in this case, in the case of cryptocurrencies, there isn't one authority, third party organization that controls it. Hence the term distributed decentralized. A defining feature of cryptocurrencies is that they are generally not issued by any central authority or third parties. There you go. As I mentioned, that is one of the most defining features. There isn't one party or authority that controls it. All right, here are some examples of cryptocurrencies. Some of the common and popular ones that some of you might be aware of is Bitcoin and Ethereum. Those are two of the popular ones. And then there are others as well. And they all have their own individual blockchains, and they all have own individual purpose. Okay? And there's a whole book you can write on each of them, so you can do your own research for years. A taste of examples of some cryptocurrencies. All right, let's talk crypto volatility. So you wouldn't call it a feature, but one thing about crypto is that it's highly volatile. It's a highly volatile asset class. And part of that is it being so new. But it is important to understand that it is volatile. So if you do choose to get into it, you have to know what you're getting into. It's important to do your own research. I'm going to go over a few ways to purchase crypto. The method one, you can buy cryptocurrencies on an exchange. Some examples of an exchange. In this case, you have Kraken and Binance. They are two popular exchanges where you can exchange your currency, your Canadian dollars in our case, or any currency that they allow for, into a cryptocurrency of your choice. It's very similar to how you would purchase stock on a stock market exchange. For example. Method two is selling a product or service in exchange for Bitcoin. This is as simple as writing a newsletter and having a subscription for it and making Bitcoin instead of Canadian dollars. Method three is buying a cryptocurrency miner that produces the cryptocurrency. All right, and so this is the method that we're going to dive in a lot more in the upcoming slides. All right, let's get into crypto mining. So now that we have an idea of what cryptocurrency is, now understanding the mining part will be a little easier. So mining is the process that generates new coins using a miner computer. A miner is essentially like a computer. Now back in the day, you could use your regular laptop or desktop computer to mine coins. But in today's day and age, with the advancement of cryptocurrency, you need more powerful, powerful computers in order to do this. So your laptop would not be able to manage this. You would need something more powerful than that. And so that gave birth to miners which have specific tasks. So here are some examples of miners. On the left is a, what is called a GPU card. Some of you tech who are tech savvy might be familiar. Yes, your laptop has a GPU card, but what this is is a very advanced GPU card that is used primarily for high performance tasks. And cryptocurrency falls under that category. Mining is a high performance task. On the right side you have what is called an ASIC miner. This is a miner used specifically, for example, the one on my screen. It is designed specifically for that purpose to mine Bitcoin. Cryptocurrency mining involves fast decentralized networks of miners around the world that verify and secure the virtual ledgers that we now know, blockchains that are called blockchains that document these cryptocurrency transactions, thus avoiding what I talked about earlier, counterfeiting and double spending. So all the miners job is they're tasked with verifying and securing the ledger, the blockchain. And they do this by solving mathematical problems via code, mathematical algorithms moving on. In return for contributing their processing power in order to secure and verify, the blockchain miners on the network are rewarded with new coins. It's just an exchange that happens. The owners of the miners, they provide the miners on for the network, secure and verify the blockchain on a cryptocurrency network. And then in exchange, they get rewarded with coins of that particular cryptocurrency blockchain. For example, if you were to help secure and verify the bitcoin network, you would be rewarded in bitcoin. And so it's a cycle. The miners maintain and secure the blockchain. The blockchain awards the coins. The coins provide an incentive for the miners to maintain the blockchain. And so this is how the blockchain remains secure every single day, because you will always have miners mining and securing and verifying transactions that occur on a blockchain. The coins acquired by the miner can be exchanged for fiat currency, as I mentioned, Canadian dollars, US Dollars. Okay. And so this can act as a form of profit for the owners of the miner. And of course, there are expenses involved as well. Okay, that was an intro on cryptocurrency and then an intro on cryptocurrency mining. Now what I'm going to dive into is crypto mining investing. I'm going to make sense of that crypto mining investing. So in order to do that, the analogy I'm going to use is real estate investing. So we're going to understand investing in crypto mining through the lens of real estate investing. And some of you might be familiar with real estate investing, some of you might not. So here's a little brief on real estate investing on a very high level. In real estate investing, what you're doing is you're purchasing a house. You find tenants to live in the house. The tenants then pay you rent monthly, and you use a portion of the rent to pay expenses monthly. And so whatever is left over.

Becomes your net profit. Very simple. Now let's connect that to cryptocurrency mining investing. When you invest in cryptocurrency mining, you purchase a miner. So it's physical, just like real estate. Once the miner is fully powered up and connected, it starts securing and verifying the blockchain that it is connected to, as you now know. So this is similar to getting your house rent. The blockchain then rewards the miner for doing the above tasks, similar to when your tenants pay you using your house. The reward is paid in the form of a cryptocurrency. And so you would use a portion of that cryptocurrency to pay monthly expenses of operating the miner. Some of the expenses involved in real estate include your mortgage, your taxes, your insurance, some maintenance costs. When you're operating a miner, the expenses include, one is electricity fees. And that's because the miner needs power. Right. And as I mentioned, it is. It is a quite a powerful computer. So do you think it would need a lot of power? The answer is, yes, it would need a lot of power. And yes, you can mine at your home, but you would need to set it up in a certain way for the power to go through to the miner and for everything, everything else in your house to still work properly. The last thing you want is to burn the entire circuit down. Another option is to have someone else host the miner for you. And there are services out there where they have the infrastructure built to mine certain cryptocurrencies. For example, bitcoin. So if you wanted to mine bitcoin, you can find a service where they will host the miner that you purchase. So they will host it in their facility. And then so in exchange for that, what you would be paying them is a hosting fee. And this would vary depending on the service you choose. And then you would be paying them the electricity fees. So those are the expenses involved in operating a miner. Okay. So once you pay the expenses, whatever is left over becomes your profit, similar to real estate investing. All right, case study time. So now we're gonna dive into an actual example where you will learn how you can multiply wealth through crypto mining and effective cash flow management via the infinite banking concept. We have a client. We are gonna call him Harry. He's age 28, he's an engineer. His income is 100,000 in total. He's currently single and he discovered IBC in 2020 and he lives in Ontario. When he makes financial decisions, he does it based on research and education. He does not depend on someone else's opinion. Harry invested a lot of time educating himself on cryptocurrency and investing options available to him for crypto. Harry chose investing in crypto mining versus cryptocurrency because it resonated with his style of real estate investing. So the miner that Harry chose in this case produces bitcoin. So he chose a bitcoin miner. Now, Harry purchased the crypto miner in 2022. The purchase price was $16,000 at that time. Prices have changed.

The hosting and electricity fees. The cost to Harry to run the miner is $220 per month. So Harry did use a host one of those services to host the miner. And his net profit in month one was $254.58. We want to talk about the options that Harry had to purchase this miner.

So his options available as you can see on your screen. So he could have purchased the miner using cash. He has cash saved in a commercial bank because his income is $100,000. Harry is a saver because he understands without saving he cannot build wealth. You have to set money aside for the very specific objective for high caliber opportunities that are going to come attract. And for Harry, the high caliber opportunity for him was by buying a crypto miner. So he had cash available and he could have taken his cash and he could have bought the miner. Now when we pay cash, there's cost associated with cash. Now people may think that when we pay cash for things, we don't have to pay interest on using our own cash because we're using our own money. But the cost associated with using cash is called loss of interest. Because when you use cash, the money is gone permanently. You cannot reuse that money ever again. And that loss is permanent. It's gone over your lifetime, is gone over your next generation to come. Now the other option that Harry had, he lives in Ontario. He, he owns a property and, and he, he's, he's been paying down the property. Plus there has been appreciation the property. And Harry understands that he can't take the house to heaven, right? So he can smartly use the house today and borrow against the equity that's built into the house via a method called HELOC Home equity line of credit. And then he can borrow money against his equity as a loan from the bank and then go purchase the miner. And in this case Harry, if he uses heloc, he'd be using someone else's money, other people's money, opm and this cost of using someone else's money and that cost is cost of paying interest because bank is going to charge interest. So the third method that we're going to discuss is the process of becoming a banker, the infinite banking concept. And the process of becoming a banker is not about losing interest, it's not about paying interest, it's all about recapturing interest. Now you may not be familiar with the word recapture when it comes to recapturing interest. That's okay because we're going to talk about all that in the slides to come. He has three options and we're going to compare three options. Now our hope is that you will have clarity towards the end on why does it make sense to do it through the process of becoming a banker versus the other two methods which is to pay cash or to borrow someone else's money. In this case, heloc you will see clearly that financial progress is not just based on the decision of where to invest. Investing money is a good way to build wealth, really recognizing that investments have risk associated with it. You will see clearly that financial progress is not just based on the decision of where to invest, but most importantly, how are you going to go about purchasing the investment? Are you going to go about purchasing the investment using your cash? Are you going to go borrow someone else's money to go buy the investment? Or are you going to use the process of becoming a banker? These three methods will produce very different outcomes. The objective will still be accomplished which is to buy the investment. But depending on which method you choose, you could be even ahead in life financially. You all have choices to these methods. You spend cash on investments. You borrowed money to buy investments. You may not have yet be using the process of becoming your banker to buy the investments. All these methods will help you accomplish the objective is this one of these methods would radically transform the that objective in your favor financially. And you're going to see why and how.

Everything that we do in life financially is a measure against how someone else is doing right? If I'm making progress, the real question is what compared to who? If I'm making financial progress, what compared to who? If I'm not making financial progress, what compared to who? Everything is comparative. That's how we determine whether we're making progress or not. And same applies to the methods that we have available to buy things. So whether we use cash, heloc, ibc.

When we have a comparison and then things become clear why one is better than the other. Again, you're going to see us repeat things today because reputation is going to be the best practice to learn. Every decision that you make with the use of money is a financing decision. And here's what I mean by that. You either give up the interest that you could have earned so AKA using cash. So if you have purchased anything using cash, you know now that that money is gone permanently using cash has cost. The cost is called cost of loss opportunity because that money could have been earning interest for you. When you use cash, you give up the opportunity to earn interest. So that's a financing decision. The decision is when you use cash, I'm making a decision that I'm okay not earning interest on that money. The other way that we finance things is is we pay interest on using someone else's money AKA from a bank or third party financing. So it obviously is a financing decision because there's interest associated with it. Now the real question is, is there a better way to finance things in life? Because we already financing everything that you buy, you finance everything. You to pay cash, you lose interest or you borrow money and you pay interest. So if you're financing everything that you buy, is there a better way to finance things so that you radically transform the outcome in your own favor financially? The answer is yes. And that is the process of becoming your own banker. I'm going to talk about that. So option one, Using cash. So Harry, so going back to Harry. So he's 28 years young. He's also an engineer, just like Taran. Taran, former engineer. He makes about $100,000 per year. And the objective for him is to buy Miner. And you know why he's buying the miner? Because he wants the cash flow at from the cryptocurrencies. That's his objective. And he resonates with that kind of style of investing into crypto because he's also a real estate investor. He likes that cash flow strategy. Purchasing a miner using his own cash. The objective is to buy the miner. The cost of buying miner is 16,000 Canadian. Now Harry, he's 28 years young. He's a very young guy. And a projected mortality for a male non smoker and Harry being non smoker, the projected mortality for male is age 85. When he takes his cash which is saved in someone else's bank or rupee, that $16,000 that he has saved is in someone else's bank. When he takes that money and and exchanges that money to go by the miner, he just made a financial decision. The decision is foregoing the ability for that money to earn interest for him over the next 57 years. So from age 28 till age 85, I'm just looking at projected mentality. That money is gone. And Harry has plans to settle in life. So he has a fiance, he's going to settle down. They can have kids, they're going to have a family. When that money is spent on buying the minor, that money is not just gone over his lifetime. Assuming that he lives 85, but that use of money is gone for his next generation to come, their next generation to come, that loss is permanent. But if you just do the math, over his lifetime, assuming that $16,000 could have conservatively earned him 3% per year from age 28 till age 85, the real cost for him to buy that miner is not $16,000. The real cost for him to buy that miner is 88,002, 74. That's basically assuming that 16,000 could have been earning him 3% every year over the next 57 years. When you look at this, when you do the math on the cost of loss opportunity, because many people may be familiar with the cost of loss opportunity, they just may not be understanding this when it comes to the real math. So, so the real cost of buying that miner is 88,002, 74. That's in dollars. But what about the real cost of loss in amount of number of days, a number of months? Because now how many months or days is going to take for him to recover that 88,002, 74. Just say it's going to take him a lot of time, a lot of day just to recover that loss. There's this cost of loss opportunity, there's time value of money. So by paying cash, he's actually going backwards. And this is something that he never saw until he read Nelson's book, that every decision that we make with the use of money is a financing decision. So paying cash may not be the best option for him. If he uses his own cash to buy the miner, he will accomplish his objective of buying the miner. But how much of the cash can he reuse? How much of interest is he going to earn on that money now for how long has he lost the use of that money? All those things have to be factored in to make a decision whether cash is the best way to go about buying things in life. And in this particular case, we're just talking about buying a miner. The option number two is using home equity line of credit, heloc. Now purchasing a miner using HELOC opm, someone else's money, in this case the bank. Now there's interest associated with using someone else's money. Now bank back in the day when he bought that Miner, May of 2022, the HELOCs were just shy of 5%. I'm just going to use 5% here. Now the HELOC is even higher today. The interest rates are going up. Now when we borrow money, in this case a HELOC to buy the miner, his objective will be accomplished. But as he starts to pay back the loan now, so he uses bank's money to go by the miner and now he's taking his money and paying back the loan while all that money is leaving him permanently. Who is getting the money? In this case it's the bank. It's not his family keeping any of that money. The bank controls the transaction. The bank can call that loan in any time. If he's only making interest payments, bank and maybe force him to make principal and interest payments because they control the transaction. The bank owner and the bank owners of the people who have shares in the bank are actually benefiting on the interest payment received from Harry because that interest is non profit for the bank. Harry is not seeing any of the profit again. Now again, how much of that payment that he's going to send away to the bank to borrow bank's money to go by the miner after he's done paying the bank, how much of the money can he re access again? Well if it's a heloc, the only thing that he can re access is the principal. All the interest is gone. He cannot recapture any of that interest is gone forever. Just to simplify Cash and HELOC conceptually and I love this diagram, I saw this diagram on the book called and Asset. If you haven't read the book called the and Asset, there's an and Asset book. You should definitely get a copy of the book. The option one was cash. First thing is if we have to buy things just by paying cash because we don't want to get into debt. While it all begins with our behavior to start saving money, so to be ready to pay for cash we have to save money and that money is saved in someone else's bank. So we saved that money. In this case, Harry worked really hard, months, quarters and years to save that money. And once he had $16,000 and if you would have used his cash of $16,000 to go by, the minor objective would have been accomplished but his cash account would go down to zero. That's the reality. Money is gone. It's not going to own anything for him. The other option for him was to use heloc, which is other people's money. Opm. Now when, when we get heloc, we start in debt because we're starting with borrowed money. So we go into debt. So we are negative. If this is zero, this becomes negative. So we start in debt and then Harry has to work hard to pay down the debt which is in this case the bank. And then once the debt is paid off, he's back at zero because he has no money to show for it. So whether we pay cash with things or whether we use other people's money, now in this case, when it comes to other people's money, there's interest associated with it. We can see how much interest we're going to pay. But when we pay cash for things, we're not going to see the interest because we may not do the math on the cost of loss, opportunity. But whether you pay cash, whether you borrow money from, from HELOC or bank or third party or private lending over the transaction, you're down to zero. It's not one is better than the other. Ultimately, you're down to zero. You have no cash, you have no money to show for it. Whether you buy things using cash or whether you buy things using borrowed money, the money is gone. Whether he uses option one, which is his own cash, or whether he uses option two, which is opm, in this case heloc, other people's money, he will still accomplish his objective. But the money is gone. It will, it's permanently gone. It's been transferred away from his family. He can never reuse that money ever again. Now, is there a better way? And that is what we are going to be teaching you today. That's what you're here for today. Is there a better way? Is there a way that we can enhance what we already are doing today financially? And if we can do that without working any harder, without taking on any risk, without losing access to cash, that would put you in a much better financial position. And that better way is the process of becoming a banker. What if Harry accomplishes his objectives of purchasing the miner, but also radically enhances the financial outcome in his favor by not transferring any of his money away as he would? If you would have opted for option one and two, well, that would certainly put Harry in a better position financial position. And that option is the process of becoming a banker, the infinite banking concept. It's important to understand the tool that we use to implement the process of becoming a banker. And that tool is called a participating dividend paying whole life insurance. Participating dividend paying whole life insurance is just a tool to get the job done. Now you will agree or you may agree with my next statement here that your money needs a warehouse. So wherever your money is sitting today, it's sitting in some sort of warehouse. If you have your money in your wallet, well, that's a warehouse for your money. If your money is inside a toilet tank, that's a warehouse for your money. If your money is in a bank, well, that's a warehouse for your money. If your money is underneath a mattress, that is a warehouse. If you keep your money in vault, well, that's a warehouse. Your money needs a warehouse. It has to sit somewhere. I'm going to talk about a tool called participating dividend paying whole life policy which can become a warehouse of your money. And from that tool you can implement the process of becoming Your banker and finance the things that you need. And it will radically enhance the outcome of that objective in your own favor. So your money needs to sit somewhere. It needs a fair house. So we can talk about participating dividend paying whole life policy. Some attributes around the policy. A participating dividend paying holder policy can help create a peace of mind and unmatch financial security. And here's how. There's something called cash values which begin to accumulate immediately. And these cash values are contractually guaranteed to grow daily. So cash value is your capital in these policies. So as you put money into policies, as premium is going to create access to capital via cash values. And that cash value is your capital. And that cash value can only go up because of certain contractual guarantees in this policy, which I'll explain what those guarantees are. The cash value will only go up. The cash values can never go backwards. If crypto goes down, your cash value still go up. If stock market goes down, your cash value still go up. If the stock market goes jump off the Mount Everest in a doomsday scenario, your cash values will still go up. What happens in the financial market world does not impact your cash value growth. Cash values can only go one way, which is up on the contractual guarantee is that by age 100, total cash values in the policy must match total death benefit. So you always start with a higher death benefit. And the way the policies are designed is your death benefit is a moving target. It increases in value every year going forward. So when death benefit is increasing and the contractor getting tes for the cash values to master that benefit by age 100, so the cash values grow every day and every year going forward, your cash value growth becomes better because your death benefit goes up. So cash values can only go one way, which is up because of insurance companies contractual guarantee that by age 100, cash values must match the total death benefit. You don't have to live till age 100 for that contractual guarantee to be in place. It doesn't matter whether we kick the bucket at age 68, 65, age 80, it doesn't matter. What matters is it's going to match the death benefit by age 100. And if you kick the bucket before that, the family gets the death benefit in the policy. So if you live a long life, you're going to have a lot of cash that you can access in the policy. It could be access for buying crypto miners, it could be access for buying other investments. It could be access for retirement. But if we become an angel, or when we become an angel, our family will get that tax free death benefit which is in the policy on top of cash value now in the policy, the participating dividend paying holder policy as a policy owner. So whoever owns the policy is the policy owner. And the policy owner has easy access to and has full control over the growing pool of financial value of financial energy that, that you can use to take advantage of some high caliber opportunities. And we'll talk about how you can go about doing that, how you can access money from the policy. Now when you are building cash values in the policy, you're not penalized for accessing the cash values early as you are when it comes to some other registered accounts where your money may be sitting today, like RSPS or other financial products. There are several tax advantages, both personally and corporately of owning a policy. Not going to dive into tax advantages, but there certainly are a lot of tax advantages of having money in the policy. Now it provides a growing death benefit which is paid to your named beneficiaries income tax free. So that benefit in Canada is paid income tax free to your named beneficiary when someone has a participating dividend paying whole life policy. And as I mentioned, the, the cash values in the policy keep increasing every day. So if you think about this green slope here, so this green dotted line, this is your cash value. So every single day you age, your cash values increase. All you have to do is just wake up and be one day closer to age 100 and your cash values will increase. So this green line or dotted line, let's assume that's your cash values increasing every day. And let's say you get to this stage and this solid green bubble here, you need to access money from the policy. So one way you can access money from the policy is via a method called a policy loan. And when you access money via a policy loan, there is no qualification, there's no income verification, there's no credit check, there's no consent to repayments. The only thing that insurance company is going to ask you is if you want the money that we're going to send you via loan, do you want that money via check or you want the money electronically deposited in your bank account? That's the only question insurance company is going to ask. And if you access money via something called a policy loan, your cash values in the policy will continue to grow and compound uninterrupted. Because you're accessing insurance company's money, you're not touching your money. So if you access money as a loan, you can pay back the loan on your terms back to the insurance company. So this red step graph, this represents your loan repayment. And once you're done paying back the loan back to the insurance company, you can re access lot more than what you were able to access the first time because you're repaying the loan back into a ever growing pool of capital. And if you keep doing this every time, you are actually a wealth creator. You're building wealth by financing things a little differently because you're financing against your ever growing pool of capital. And God forbid at any time death occurs and there's still a loan outstanding, any outstanding loan is deducted from the death benefit and the family gets the remaining money. And the reason why the cash is increasing every single day, because by age 100, total cash values must match total death benefit and that cash value can be yours. We talked about being a wealth creator buying able to access money as a loan. Now there's two ways. So one is a policy loan, which we talked about in the slide. The other way is you can always withdraw your own cash values. Now again, if you withdraw your own cash value, the cash flow is increasing every single day and you make a withdrawal of your cash value. Well, if you withdraw money from an asset that's growing in value every single day, you're going to kill the growth of the asset. Whereas if you're initiating policy loans against your ever growing cash value, you're not killing the growth of the asset. The asset still continues to grow and compound no matter what. But you can access money via two methods. If you choose to do withdraw, you can, we just don't encourage withdrawal. The process of becoming a banker is about achieving uninterrupted compounding in the policy going forward. So if you access money via withdrawal from an asset that's growing in value every single day, well that asset growth will stop. But if you're accessing capital via a method called policy loan, you will achieve uninterrupted compounding. So your money called cash values will continue to grow no matter what. As you are using insurance companies money to accomplish the objective of buying what you're going to buy. So by flowing money to the system, you're not changing your objective, you're not changing your cash flow. You're you just smarter about making sure that your money is actually compounding and growing. While you're able to access insurance companies money to accomplish the objective of buying the investments, or in this case it could be crypto mining, you could be using it for real estate. Doesn't matter what you need to use money. If you borrow against your growing pool of capital, your cash values will continue to grow and compound uninterrupted. Now here's what a policy loan process looks like. It's a single page document. And the input required on a policy loan document is it needs your name. They need to know who you are. They need to know your policy number. Because you can have multiple policies. They just need to know which policy you want to use to access a loan from. They need to know how much do you need when what you can borrow from the policy is equal to 90% of your cash value. And the other question that they're going to ask you is how do you want to receive that loan? Do you want us to send you a check or you want us to electronically deposit this money in your bank account? Just let us know and we'll do it. Doesn't matter which option you want. We okay doing both ways and then you have to sign and date. So this is what's required to take a loan from the insurance company against a cash value. There's no qualification, no consent to repayment. So if you contrast this method of initiating loans versus how you today are initiating loans, you know which method is easy. Now here's some important facts. The policy that we use is called participating dividend paying whole life policy. So we talked about the cash growth and the death benefit. But this other thing which is in the policy, it's called dividend. And dividend that you receive in the policy is based on, based on the design of the policy, it's based on how much premium you're putting in. So if you put more money into policy, you get more dividends. And dividend is coming from the insurance companies profits that they generate on an annual basis. And the companies that we do business with, they have been paying dividends to policy owners since 1848 without a miss. So when you initiate a policy loan, it does not interrupt your daily cash value growth. So your cash in the policy continues to grow no matter what. When you initiate a policy loan, it does not reduce your death benefit while you're alive. Any outstanding policy loan is deducted from death benefit at death. Provided there's a policy loan outstanding, it doesn't negatively impact your future dividends. So your dividends that you receive on policies, which is one time per year on policy anniversary day, if you have a policy loan outstanding, it doesn't negatively impact your dividends. There are companies out there which would impact your dividends if you have a policy loan outstanding, and we don't work with those companies. A policy loan is private between you and the insurance company and it doesn't show up on credit reports. So if you are initiating loans from the policy, that is just private arrangement between you and the insurance company, it's not going to impact your ability to still borrow money from the bank. If you have to use the bank going forward, add debt. Any outstanding loans are deducted from death benefit.

Now going back to Harry. So Harry discovered the process of becoming a banker in the year 2020. And as Taran explained, Harry doesn't make decisions to get into something, whether it's crypto mining or ibc, just based on someone's opinion. Harry is a researcher. He loves to read. And that's the kind of mindset that we connect all with because we want our clients to educate themselves on what the process becoming a banker is and how it can impact your life going forward. Harry started his policy, his first policy. If I may add that he has multiple policies now, but he started his first policy in the year 2020 and he chose to flow $5,000 per year as premium in the policy. That was his decision. He wanted to get started at 5,000 per year because he was saving a lot more than that in a commercial bank every year. And he said, rather than me continue to save this money in a bank, I just want to take that money and start saving money in the policy. So he's not changing his cash flow to start a policy. He's just changing the address of where the money is sitting to start a policy. So his first premium was 5,000 per year. Now this particular policy, Harry is the owner of the policy and he used his own life to insure. So he. He's the life insured. He's the owner. His starting death benefit in this policy is $126,437. I'm specifying starting death benefit because the way the policy is designed is every year the death benefit increases in value. That death benefit is much more today in 2022 versus when he got started. Now, we talked about the daily cash value growth just in the first year itself. The daily cash value growth in the policy was $2.10 a day. How do we know that number? While we being the advisor on the case, we can look at his values today and then we can look at his values the next day. And that difference is his daily growth. Now, in the first year, 2020, when he started the policy, the daily growth was $2 and $0.10. As of today, the daily growth in the policy is $4 and 20 cents. So you can see the daily growth in the policy increased. And this is what happens in the policy because cash values must match death benefit by age 100. But the death benefit is a moving target. It increases in value every year. So when death benefit increases, it increases the daily growth in the cash value for that year. So as time progresses, as years progresses, his daily growth in the policy will also accelerate.

So we're going to Fast forward to 2022. If you recall that it was in the month of May when Harry made the purchase of the miner. By May 2022, the cash values in his policy was over 8,000. The daily cash value growth in the policy is now $4.20 per day. The policy loan initiated in this case, he was able, Harry was able to use 90% of the 8,000, so 7,200, which he received in about seven days, seven business days. As I mentioned, the minor cost was 16,000. Now the $7,200 in policy loan is obviously less than 16,000. So the rest was funded by cash. So the remaining 8,800 was funded by cash. In this scenario, he was able to control whatever he could control. In this case he chose, he was able to control $7,200 by taking all of the policy loan. The daily interest charged by the insurance company in this case was $1.22. And that's daily. And here's the calculation for those of you who want to do the math. And Harry decided to pay back the policy loans to the insurance company in the amount of $650 per month. How did he put this amount? He got it from earned income and he got it from the profits of the miner.

In this case, Harry decided to pay back his loans at 650amonth. The keyword is Harry decided insurance company didn't force him to get an amortization schedule and stick to it. He can take a vacation from his loan repayment if he wanted to. But if he would have borrowed this money from a third party bank or a finance company as a loan, he had no choice but to stick with that amortization no matter what. So when he is getting the loan from the policy to accomplish his objective of buying things a, he's not interrupting the growth of his cash. Yes, he has to pay interest to the insurance company. But he is in total and absolute control to pay back the loan. And that's the key in this whole scenario. And you're going to see the impact of him paying back the loan back to the insurance company.

Awesome. And so here's a slide that I want everyone to pay attention to. As Sarblo mentioned, the daily cash value growth in the policy is now $4.20 per day. From the previous slide we know that the daily interest charged by the insurance company was $1.22 per day. How are we doing here? The cash value growth on a daily basis is far greater than the interest that the insurance company is charging. So right here this is where Harry is recapturing the cost of interest. And he's doing that because of the way the cash value grows every single day.

We talked about three options of purchasing miner. One was cash and when Harry. If Harry would have opted for cash, he would have accomplished his objective. But use of cash is called losing interest because he's not earning interest on that money. If he would have used this heloc, he would have still accomplished the objective but he would have paid interest. Because HELOC is someone else's money, he has to pay interest. So cash is losing trust. HELOC is pay interest. The process of becoming a banker. As Taran walked us through, you can see his daily growth in the policy is $4.20 and his daily interest charged by the insurance company is $1.22 to use their money. And this interest is at 6.2%. As you can see on the screen, he's recapturing the cost of interest charged by the insurance company which is $1.22 and the growth of his cash values which is $4.22. So if you recall I made a comment that IBC or the process of becoming your banker, the infinite banking concept is all about recapturing interest. And that is how we build financial wealth. You can see that in real time now. The power of using the recapturing method versus the power of using paying interest method or losing interest method. And that interest that Harry is going to pay, that interest is adding more energy, more financial energy to the insurance company. And Harry co owns the insurance company because anybody who has a participating dividend paying whole life policy co owns the business and hence participates in the divisible profits via dividend. So when he's pumping financial energy into his own company, he's making that company much more stronger. Not just for himself but for everybody who owns the policy. And if he is building his cash values higher than what the interest is, how does the interest even matter? Because he's recapturing the interest charged by the insurance company in the growth of.

His policy, his monthly loan repayment was $650. And as I mentioned, that's cash flow from the miner and his earned income. The monthly cash value growth is $126. That' $4.20 per day times an average of 30 days in a month. And we have the monthly interest at $36.60. So the total monthly transaction is the 650 plus the 126 of cash value growth. Taking away the interest, Harry recaptures $739.40. Where else can Harry pay back 650 per month as a loan and get access to $739.40 right away? That's more than what he put in.

You may have some investments or you may be looking at buying crypto and you may have accomplished the objective of buying those investments using maybe debt or OPM someone else's money. Or you may have payments for cars, you may have payments for credit cards, you may have payments for lines of credit, you may have payments off for student loans. You are already making payments today. And then ask yourself this question. When you make that payment, doesn't matter what that payment is. It could be 200, could be 100, it could be 500. How much of that payment are you able to reuse now? And compare that with what is happening when Harry is flowing the money through the process of becoming a banker. In this case, he's making a payment of 650 and he's able to access 739. We all have payments to make. Here's another fact. Payments in life do not end. But if you make those payments differently, then we're financially moving ahead, we're financially moving progress provided we are flowing it through the process of becoming a banker just the way how Harry is. So he pays 650 per month immediately he's got access to 739. So he's building wealth as he's making back payments and he's going to use those that wealth that's building up again for his next investment. And next investment may not be crypto, it may be real estate, it may be private lending. So just think about what's happening on your payments and just compare it with what's happening here. And you can do this too. It took Harry two years to get to where he is today where he's ready to take policy loans and go by the crypto. So can you this process is a long term process because you need money till the end of time. Someone has to finance things for you. That someone should be you. And one question that we get asked all the time is can, can we meet with a authorized Infinite Banking practitioner on your team so that we can have a one on one discussion and see if this is a good fit for us and see how this can be implemented in our life? Well, the answer is yes. All you have to do is text the what schedule to the phone number on your screen, which is 780-809-4599, and you receive a link and click that link and book it. Time that works best for you at that meeting. Don't bring any money. There's, there's nothing to bring to that meeting other than your questions. So gain clarity, see if it's a fit. But to do that, text the word schedule to 780-809-4599 and you'll meet with one of our team members and they're all authorized infinite Banking practitioners and they all practice what they teach.

Awesome. Let's look at the breakdown of the income that Harry generates from the crypto miner from the bitcoin miner. It's a bitcoin miner that produces bitcoin every single day. And again, that's because the miner is securing and verifying the transactions on the bitcoin blockchain. The reward that Harry receives is this amount in bitcoin per day. As of May 2022, Bitcoin's price is 39,000. And as you know, crypto is volatile, so this is an average price. The price definitely fluctuates on a day to day basis. The revenue per day on average was around $15.60 per day. The hosting and electricity costs per day. Now this is a fixed cost, so this is $7.23 per day. And so the total net profit per day, the daily net profit would be $8 30, 37 cents per day. And of course, once again, it would fluctuate based on what bitcoin's price is every single day. So the average total monthly profit based on 39,000 being the price of Bitcoin would be $254.58 per month as of August 2022. So just last month, the bitcoin produced per day remained about the same. So it's the same amount here. However, the price of bitcoin dropped and it dropped to about 26,100 on Aug. 31. It's a little lower now, I believe. Now the revenue per day is $10.44, so it dropped a little bit. The hosting and electricity costs remain the same. So $7.23 per day. So that's Fixed amount, as I mentioned, and your total net Profit now is $3.21 per day. That amounts to $97.63 per day. However, what I want you to pay attention to is once again, the volatility. In May, when he purchased, his monthly profit was 254. In August, when he had the miner running, it was at $97.63. Think about the volatility in relation to how he purchased Miner. So as Arnold Sanash, late great mentor, I should say, his saying is, everything begins with the way that you think. Now there's another quote and the quote goes, most people would rather die than think. And many of them actually do. You see, you cannot control what cryptocurrency is going to do. In what I just showed in the past couple slides, Harry was not in control of Bitcoin's price.

Okay, the price dropped. He was not in control of that. But what he can control.

Is how he is going to buy or how he bought the Miner. As you saw in Harry's case, the cash flow from May to August went down. Once again, Harry cannot control the outcome on Bitcoin, but he did control the way he purchased the Miner. If you ask yourself, how do you think that will make you feel when you sleep at night? Probably a lot better because he was able to control one aspect transaction and that's purchasing the Miner. And this is what reduces his overall risk in the investment, which should help him sleep better at night.

Exactly. Things like crypto and financial markets, these are out of control. We don't control that. You know, even we think it's a good decision. It, you know, it goes up and down, it fluctuates, it's a fact. But if you look at from May till August, he bought the crypto miner using his policies, using the process of becoming a banker. The crypto miner was doing really well in terms of mining the bitcoin. Now crypto miner today is still mining the bitcoin the same way. But it's just that the value of Bitcoin in terms of Canadian dollar has come down, which is producing less cash for him. But irrespective of that, there has been no change when it comes to the process of becoming a banker, which is how he went about financing the miner. He still continued to build wealth in controlling the process. He pays back just over $600 in policy loans and he's got access to $700. So he continues to build wealth no matter what, which is his behavior of making a decision, how he wants to go about buying things. But if you compare and contrast how he bought the Miner versus HELOC versus Cash, he would be stressed today because a the cash is gone and then the outcome for miner is gone. And if you would have used heloc, well guess what, the interest rates went up, he would be paying more to the bank and he's not getting any money back. And plus the outcome for the miner went down. So we can't control, as Theron mentioned, the outcome from the investment, but we can certainly control our behavior of how do we going to go about buying things and that's still going to push it ahead financially. Doesn't matter which option he would pick, whether it's cash, whether it's heloc, whether it's ibc, he would still accomplish his objective. But there's one option that'll put him in a better, stronger financial position. So out of these three options, IBC will not just help him accomplish his objective of purchasing the Miner, but using IBC he will be able to reduce his overall financial risk, build more wealth, irrespective of the fact whether crypto Miner produces the financial outcome that he desires out of the crypto miner, absolutely.

I'm going to leave you all with this. The only behavior that you can control is your behavior. You can't control the behavior of what happens in the financial world with the stock market, crypto, Bay Street, Wall street, real estate that is not in your control. But by adding one extra step to what you are already going to do, to what you're already currently doing financially, which is implementing the process of becoming your own banker, the infinite banking concept, you can reduce the overall financial risk and radically enhance the financial outcome, the overall financial outcome that you expect. If you can implement this process without having to work any harder, taking any additional risk, losing control over the access to money or changing your cash flow, how would that make you feel? Wouldn't that be great? And it doesn't matter where you start. When it comes to the premium amount that you want to put into your policy, that doesn't matter. But when you do start, you will feel really, really good about it.

We have almost 500 five star Google reviews, all these clients, as you can see right in front of you, they are certainly feeling really good about starting the process. It doesn't matter what premium they started at. The only thing that's standing between you and you achieving your goals is you. Nothing happens if nothing happens. So you have an opportunity now to connect with one of our teams to have a one on one discussion. About how this can be implemented in your life, personally, corporately, whether it's for crypto, whether it's for real estate, whether it's for stock financing, doesn't matter. What you need for use of money, if you flow it through the process of becoming your banker, it's going to radically transfer the outcome of that transaction in your favor financially. So take massive action. Book that call. Our team is looking forward to connecting with you. And here is the next step in continuing your journey in discovering how IBC can be best implemented in your life. And all you got to do is text the word schedule to 780-809-4599 and book a call that works best for you, the time that works best for you.

What's the best resource for determining the appropriate monitor for each individual circumstance?

Everyone's best friend, which is Google, right? Yeah. Yeah. Google will definitely give you some resources, but some specific resources. What I would do is I would follow people in that space. Some people to follow, you can find them on Twitter. There's Anthony Pompliano, there's Will Clemente. There is Compass Mining, has a lot of research on mining as well, a lot of information. They have podcasts as well, where you can go to and learn about crypto mining, learn about bitcoin cryptocurrencies, and there's a lot of information on YouTube as well. Um, there's a ton of channels and, and there's even books as well. What I would say is start with Google and then when you start with Google, you're going to fall down the rabbit hole and you take it from there.

Yeah, well, that's great. I kind of passed at the time I got the question. I said, do your research. That's your best thing. And that's what you kind of said is, you know, spend your time educating yourself like that. So here's another good one for the two of you. What are your thoughts? If we're not tech savvy to set up a miner, can we use policy loans just to buy bitcoin?

Yeah, it's a, it's a personal choice and, you know, in my experience, you don't need the know how or the technicality about the miner. You just have to find the right who where you can host the miner and let them do everything else. And you just worry about making sure that you're obtaining the objective using the IBC process. But Tarana, I'll invite you to share your insights on this too.

Yeah, you can most definitely take out a policy loan to purchase A cryptocurrency outright, for sure. You can do that. That's one option. As I mentioned, there's three ways of acquiring cryptocurrency, right? So that's one of the ways. And you can take out a policy loan, as we showed you, to purchase a miner. It all comes down to what you're looking at to achieve and why are you doing that investment. And that comes down from your own research and what you're comfortable with.

When did IBC start?

Oh, Nelson wrote the book titled Becoming a Banker, the unlocked infinite banking Concept in the year 2000. But he had been practicing IBC long before that. But it wasn't until 2000 he wrote the book. But we discovered the process of becoming a banker. And when I say we, I say Jason Low. Fourteen years ago he was invited to do a seminar, Las Vegas of all paces. That session was not titled Becoming a Banker, it was titled very different. But the teaching point was becoming your own banker. And from there onwards he dove into his own research. And then he found Nelson Nash, the pioneer and founder of the process himself. See, the process may be new. The way we teach the process using a participating dividend paying holder policy is, you can call it a new concept. But these policies have been in existence in Canada since 1847. Insurance companies have been growing in cash values for Canadians since 1847 every single day. Insurance companies have been paying dividends to policy owners since 1848, every single year without a miss. Now if that track record of growing cash value and paying dividend is good.

Well, if it's good, then compared to what? Because everything that we do in life is a measure again, how someone else is doing. Yeah, the concept is new. The way we teach and what we teach is definitely new. But the tool has been in existence for over 170 years.

Yeah, I think that did. Thanks, sir Low. So here's a good one. So if Harry were to purchase a miner with a heloc, could not that be considered an investment and thus write off the interest that purchase 100%?

He could. The answer is yes, but. Yeah, which would produce a better outcome? If the objective is to get tax deduction, you can still deduct the interest and policy loans if you wanted to, and you can still achieve that. So there's many ways to do it. And again, we're not, we don't discourage people not to use heloc, not to use cash. We say, hey, if you got access to money, we are HELOC via cash and policy loans will use all access of capital to build your wealth. But the outcome will be better using policy loan all day long.

That's right. And that's what we showed in the example. Harry did not have the entire 16,000 in the form of policy loan. He only had 7,000 or 7,200 I think it was. And so the remaining was funded via cash. And he could have done it via a HELOC as well. So as Sarval said, why not do both?

I think this has been really good. So text award schedule to 780-809-4599 and book a time that works best for you.