Becoming Your Own Banker | The RESP Alternative for Generational Wealth

It's not about how much money you make, but it's how much money you keep and how hard does that money work for you and how many generations, I repeat, how many generations can you keep it for? Now, that is a powerful statement. So think about that now. Think about how you've received money in your own life.

What impact do you want to leave for your kids? You know, there's lots of different things. We think about what we want to be able to do for our children. Specifically on what I'm looking for is what about setting up your kids financially? What does that really mean to you? What does that look like? What do you want to specifically set up for your kids financially to give them the best possible life, the best chances throughout life. And I want to talk to you about how this showed up for me so you can understand where I'm coming from. So I want to introduce you to this wonderful human being you see on the screen here. His name is Nelson Nash. R. Nelson Nash. That book that I'm holding in my hands, that book called Becoming youg Own Banker completely and totally changed my whole life. That book entered my life in the spring of 2009 and absolutely everything shifted for me. It was really eye opening. In fact, to this point, that book has sold over 500,000 copies worldwide. It's a bestseller. It's self published. Now shooting forward To February of 2012, I was blessed to be able to get to meet Nelson in person and attend my very first session with him where I learned everything that he talks about in his book. And he got to, you know, kind of teach this, this concept in that one on one session. And from that point on, you know, it developed into an amazing relationship where Nelson became my mentor as well as many of the folks on my team. And he has just shaped the lives of so many people in a positive way. Now, there's a couple resources I want you guys to maybe look at here. I've got one called Nelson Nash film.com that. That's this documentary film you'll see. It's available on YouTube, but you can find it that way. Or you could just go to nelson nashfilm.com and it's right there, ready to go for you. That's a one hour documentary film about this man and how he's changed so many people's lives, his mindset and the way that he thinks and what it's done to revolutionize generational thinking. Okay. We have a tribute project we also created to Nelson called Dayof Nelson. That's DayofNelson.com now, unfortunately, Nelson again, dear friend, amazing individual. He left us at 88 revolutions around the sun. Nelson would say so. 88 years old, March of 2019. So it's been, it's been difficult not having him with us, but we're doing our best to try and teach his concept, his message of this thought process to more and more Canadians and really North Americans to help them embrace this so that they can have more financial abundance and be able to do more with the capital and the money that's flowing through their hands, which includes saving for their kids. Now, Nelson really promoted generational thinking. He used a special type of high cash value insurance policy. We'll touch on that very little bit today. We're not going to spend a lot of time on that for our chat today. But he had 49 of these assets that he built up and accumulated over his life. Kind of like a piece of real estate, you know, it's like he had 49 rental properties, but they were actually insurance contracts and they built equity and he was able to use that for many things throughout his life. When Nelson passed away in 2019, there were 17, I repeat, 17 tax free death benefit checks paid to the different people that own policies on him. And after that was all said and done, 28 of those assets, 28 of those cash value policies are still enforced today and they passed on to the next generation. So Nelson was lucky living as long as he did. He got to experience his three children, his many grandchildren and several of his great grandchildren being born and he got to experience them. Being able to see and live certain aspects of his legacy while he was still on planet Earth. It's a very powerful thing. So that generational wealth and freedom is really something that Nelson was able to impart on us and certainly on his family. Now the kids wealth plan is really part of what I refer to as my family banking system. It all stems from this book, becoming your own banker, what we're going to be teaching you today. So we encourage you to get a copy. We'll show you how to do that as we go through this session. But I'm going to talk to you a little bit about my two kids. So you'll see here I've got Nathan. He's the cute little guy in the hello shirt up here. And this is him in the red shirt, of course, practicing in the podcast studio. A little bit older. And down here I have Nora. So in December 26th, Nathan was born and in 2017, Nora was born. She was our little miracle. We Had a complicated pregnancy with our daughter. Many people on the call, maybe you've experienced something like that, or you have a friend or a family member that's had a pregnancy that didn't go the way you anticipated. So we were kind of on pins and needles for that whole period of time. And thankfully she came through, she was fine, she was healthy, everything was great, my wife was fine. And so she's kind of our little miracle now at that point in time when my kids were born, because I had already learned this information from Nelson, I discovered this idea and how I could create this generational aspect. I knew I needed to start saving for my kids and I wanted to do it in the most efficient way where I could retain and maximize, control, have growth and optimize it for. For well beyond the period of time where they might go and get a university education. I wanted something that would be there all the way until their final day on planet Earth. So past the point of time, where I'm even here is really what I was looking for. Now we've accomplished that and we're going to teach you all about that today. I'm going to show you, through examples, the real example I have for my own kids, exactly how we did that. Now I have a video we're going to teach you. I'm going to show you at the end today that was taken this May. This May, we had a family vacation and we had our first family annual family banking meeting where we talk about how we're going to grow the family's wealth, how we're going to work together. And of course, my kids are still very young, so a lot of it they don't understand, but they understand some really core principles. And we're going to talk to you about those principles and how impactful they are. And of course, this is so much greater than just education funding. That's an important thing. We do want to make sure we have funds available for university and college if our kids want to do that. But there's so many more milestone events that happen as our kids age that we really want to make sure we have available. I want to talk to you as we get into what this platform is all about, of, of family banking, of this savings mechanism, this alternative to an rsp. Before we jump into that, it's really important that we need to understand what exactly is happening with our money and how do we use our money today. So I want to do a quick diagram here and I want to talk about how people are buying stuff. How do we accumulate the things of life. And when you think about how you're doing it, as we talk through this example, I want you to also think about your kids and your grandkids. How are they going to be buying things? What are the things that they're going to need throughout their life? So here's what happens. There's two primary ways, two primaries that people buy stuff throughout life. The first thing is, well, we finance it. We go below the zero line and we go and access someone else's pile of money, and we finance it. And then we have to work, work, work, work and work and work all the way back up until we get it paid for back to zero. Then we need to go get something again. And of course, we go and tap into someone else's pile of money. We drop all the way down below here, and then we work and work, work, work, work and work and work all the way just to get back to zero making those payments. We're on that, that treadmill. Okay? Now, there's nothing inherently wrong with this other than that someone else is always getting our money. Now we're going to need to finance things. We need to finance things like, oh, houses, you got to buy cars. We're talking about education. So we need to either save or need to get student loans to help our kids through education, et cetera. There's going to be weddings, there's going to be. They got to buy computers. I mean, there's all number of things, anything you can think of where you need to spend large amounts of capital, we got to get that capital from somewhere. Now, most people, once they get on this track, they continue down that path through much of their life. And a lot of the money that they could be keeping or saving or optimizing for their life is walking out the door. Walking out the door, walking out the door. So part of this process, in this, this wealth plan we're going to talk about is going to help us harness some of that money so that you can use it for more than one generation. Now, there's a second way that people buy stuff, and that's, of course, we save it up. We got to build it up, build it up, build it up. You know, we're saving effectively. We're putting money away on a regular basis. Work, work, work, work, work and work. We save up a bunch of money, then we need to go buy something. And as soon as we go to buy it, boom, the account balance drops to zero, and we got to start all over. So as soon as we do that, we kill the growth potential of our own money instantly, all that hard work that we did to build it up, to build it up, to build it out, boom, it goes right back down to zero. And so then we go back, we start work, work, work, work, work, working away. And what happens again? So maybe that was a car, maybe that was down payment on a house, maybe it was college education for our child. When we build it up, build it up, build it up, build it up. And then boom, that happens again. Now one of the places where this happens in our life, even that people are doing this presently for their kids, is in the resp. We're going to talk a little bit more that there's nothing wrong with that tool. However, we're building up, building it up, building up, building up, building up. And then we got to go pay for education. Those values got to come down, they got to drop. And they can only do the job of one thing. That job is to pay for that education. Once that money is gone, it can never be utilized again. And we've given up not only our ability to have it grow, but our child or our grandchild's ability to have it grow. So we're really making a multi generational decision when we're, when we're deciding how we're going to work with capital. Now what I want to talk to you guys about is the power of what if, what if there was a way where we could just continue having that capital grow and grow and grow as though we never stopped that, stop that impact. We could still go and accomplish buying the things that we need, funding the education, getting the down payment for the house, buying the car. But we could continue having uninterrupted compounded growth on that capital. That is the power of this kids wealth plan. We're going to show you exactly how that works today. So now if this is what's happening in our lives, recognize that the same thing is likely going to happen in your kids lives or your grandkids lives. Now, speaking of kids and the grandkids now, one of my favorite quotes come from Robert Kiyosaki. It's not about how much money you make, but it's how much money you keep and how hard does that money work for you and how many generations, I repeat, how many generations can you keep it for? Now that is a powerful statement. So think about that now. Think about how you've received money in your own life. Think about the money that you've been planning to put aside for your kids or your grandkids and think about how many generations can you imagine having that money maintain and keep in your family line for if you had the power and the ability and a method that would allow you to transfer that wealth in an increasing fashion, each and every generation that passes, what an incredible life could be created for everyone in your family line. That's part of what we're going to be teaching you tonight. So enter the infinite banking concept again. Nelson Nash wrote this book. It's really reshaped and changed everything in my life and I know Roman's going to share his message with you in a little bit. It's a best selling book. It really was the workbook for a ten hour seminar. But the key thing is that we want to get enough in of education for you tonight that you don't have to sit through the whole 10 hours. But your journey of learning isn't done. There'll be more learning that's necessary once we're done. Part of that's going to happen when you book a meeting with one of our coaches. Okay. So we're going to show you how you're able to do that at the end and you'll understand that it's very simple to continue your journey of learning with all the educational material we have. The key thing is we're going to use examples today and they're just a fraction of what's possible. And our goal is to stretch your imagination so you can think more about the possibilities of what your money can do for you. One of the quotes from Nelson's book is that there's no such thing as having too much money in the bank. Wealth must reside somewhere. The goal is to have it in a bank or a banking system that you own and control and you can keep that control across generations. Now this concept has three primary keys. Again, Infinite banking or IBC for short. These are the three keys as I see them. Number one, it's really focused on access and control of money. You have contractual access, there's no restrictions from the government and it gives you peace of mind. You know, Roman's going to tell you a story a little bit later about using a government program and how it gave him some sleepless nights because of what was happening in the marketplace. That's not something we need to worry about here because it's a contract between you and the life company. Number two, we can create uninterrupted compounding on your money because it's a contract. There is a. The way we design these things is that money is constantly growing because it's, it has to. The insurance company is on the hook to make that happen. So it doesn't matter what's happening in the stock market, the crypto market, the real estate market with interest rates. There's a contract with the company. That means there must be constant state, steady and stable growth. Okay. It eliminates a key problem, which is opportunity cost. A lot of people do not reckon with how opportunity cost shows up in their life. And the amount of capital that disappears out of her life, that's all the lost potential of what we could have otherwise earned. The last thing is flexibility. So you can have control over the deposits that you make. You can adjust the contract because it's a contract. Access to what we refer to as policy loans. We're going to talk about that a little bit later. The payment terms of those are unstructured. You use it when you want to use it, how you want to use it with no questions asked again. So that's why the remote control is there, because you want to be able to change the channel when you're ready. When you have the power in your hands, in your financial life, you can do that. Now, we encourage you to get a copy of the book. Here's our colleague Jason, of course CEO of our company. Amazing guy. And many of our teammates are here because of him and his inspiration. I know I certainly am. And there's Nelson. It's true. That book written by him was for awesome people. I think you're awesome because you're here to learn and grow and get better on your financial life in every way possible. It says a lot about the type of people that you are. So you should have received a link by text message if you haven't already. You can always text the word schedule. That's the word SCHEDULE to 780-809-45.99. Just find a time that works for you to meet with one of our coaches. You get a complimentary 50 minute call to check in, ask questions, see if this is a fit for you. And there's so much more that can become of that. It's really amazing when you get to speak with one of our teammates. Now we're going to go over an example using my own kids. I'm going to pick an example, you know, kind of of my son's policy and I'm going to walk you through visually what's going to happen on, on my own kid's life. And I want you to picture what if this was your child or your grandchild? What possibilities could exist for you as we Go through this example. Now, this, this tool is just going to walk us through the power and impact of making deposits into a system over a period of time. Now, in my example, I, as you recall, I talked about my two kids, Nathan and Nora. Now, when I got them started on this process, I got a contract going for them. I had to decide first off, how much was I going to commit to. What was I going to commit to saving regularly to help build up a capital resource for my kids that would help them with education and other things. The difference here between me doing it in this format versus using, say, as an example, an RSP is that if I put the money in the rsp, that money's trapped in there. It's really hard to get back out. In this example, I put more capital in maybe than I would have into a different vehicle because I can still access money to do the things that our kids and I wanted to do throughout life. So an example would be family vacations. So, you know, my kids are still pretty young, so we're excited about being able to do, you know, more and more family vacations. Now, we did one of those very recently, and of course, we used this resource as a way to pay for that vacation. And now we're going to replenish what we've used and we're going to put it back in so we can recycle and use the money again. Now, I started my son Nathan at age 0, and I also started my daughter Nora at age 0. So I'm going to start my example here. And the amount that I'm putting into my son's plan is roughly, it's around $2,000 a year. So I'm just going to use the $200 a month version here. Now, you'll see if I move this slider up and down, you'll see that the green bar down below, it changes and adjusts. And if I go all the way to 500amonth, you can see we reach that peak value there. Okay, so we have people that do these of all kinds of sizes. You know, Roman's going to share his story as well. Everyone's in a different circumstance. The key here I want you to see is the impact of what's happening over the lifespan. Now, in this example, I'm going to commit, in our little program here that we're looking at for 20 years, we're looking at 20 years of consistent deposits. And then I'm going to show you at the end what would happen if we continued depositing beyond that timeframe. All right, so the total contributions for the parent in this situation being me, 48,000 over a 20 year timeframe and we're doing $200 a month.

Okay.

Now I'm starting at age zero, but if my kids were older and I started at age 5 or I started at age 10, I would still be putting in the same contributions. I wouldn't have the same total growth amount because I have less time. Okay. So that's really just a function of time and the power of compounding when if you're Starting at age 10 versus at age 0, you got 10 extra years of growth on the back end. Obviously that's going to have an impact. But wherever you're at, wherever you can start is a place that's powerful as long as you have a true intention and you know what you can do with this program as you build it up. So I'm going to bring this back to age zero. Now what you'll notice is there's several bars here. We're looking at an age 20, age 65, age 75. This is the amount that's accessible for my son in this example at these different ages. Now in my example here, we got these different examples of what's available in the, in the program at different ages. And you'll see from age 65 for my son to age 75, there's a pretty dramatic increase there over that time frame. Again, that's that power of uninterrupted compounding working to our benefit. Now what I'm going to do is I'm going to flip to the next tab here. I've got some tabs on the side and we're going to walk through different milestone ages of the child. So if I go to the second tab, it's going to jump us all the way to age 20. Now, at age 20, we want to see what is available. Well, we have access to about $49,000 inside of this plan. So we've been putting money in. We have access to all the dollars we've contributed. And at this point in time, maybe it's time to start funding education. Maybe my, my son doesn't want to go and get a university degree and he wants to go take a year off and travel the world and become a global citizen, which I think is really just code for he's going to want to go party in Europe or something. But perhaps that's something that's important to him and you want to get that, you know, out of his system before he goes to college or maybe he's got a great business idea for a product or a service and he needs some capital to, for materials or for an invention or he wants to start a business. So there's lots of opportunities that happen for kids. And when we're, when we're in the right kind of a program, we can access capital for those opportunities where we're not restricted by the different rules and regulations that are in place around a government sponsored program. This is not a government program. This is a private contract that you own and control. So at age 20, I wanted to really, really encourage my kids to begin to think about saving early. I'm already saving for them before they even knew it was happening. I want them to continue that on and get into the habit, I repeat, create the habit of saving regularly and repetitiously. So I'm going to encourage them to start taking some capital. And, you know, for my example here, let's say I'll pick $2,500 a year. I want them to start taking some of that and putting it into an annual contribution and begin investing or saving money in some other kind of tool. So there's a couple different things that are here. Maybe I'll get. Robin, why don't you pick one for me? I'll get you to hop on. Pick one from the list. What one should my son start looking at when he's 20 years old?

How about cryptocurrency?

Cryptocurrency. I think he's the kind of guy, he's into video games and stuff. That's probably going to be up his alley at that time. So let's go ahead and pick that. So he's, you know, he's investing in it and I don't know how he's going to do. Maybe he'll earn okay, maybe he, he ends up losing a bunch along the way. And he averages out at 4%, maybe four and a half. The key result is, is that he's going to take 2,500 bucks a year. He's going to get accustomed to the habit. He's going to do that each and every year for 50 years, and that's going to produce a nice little extra nest egg for him. More important than the nest egg is the habit that he's learning because he's starting. He's going to start asset funding early. Okay, safe start asset funding early. Now he has access to 49,000. He's only taking 2,500. If he takes 2,500 and he doesn't put anything back in, is he learning a very good lesson, I would say. No, he has to learn about the cash flow aspect. So what he's going to do is he's going to access what's referred to as a policy loan for $2,500, make his investment or whatever that's going to be, and then he's going to make a savings repayment back to that system and the loan goes back down, it replenishes it, and at the end of the year he can recycle and use that again. So he's got that habit in place and it's going to build up and build up over time. Now I'm going to scoot over to age 30. We're going to go 10 years out. Very common thing for people in this time frame. Something that's getting much more difficult to do in Canada these days, depending on where you live, is buying a home. So if he's starting his own family, maybe he's getting married or he's looking at, you know, having his first children come aboard. Maybe they've already, he's already had them and I'm a grandfather. That would be amazing, super fantastic. And he wants to look at buying a home. Well, he's got about 77,000 available. Plus for the last 10 years he's been building up another savings account. Right. We're not even factoring that in here. So what kind of a house can that get him? Well, if he wants to put 10% down, yeah, he can get about a 700,000, $750,000 house. As soon as he goes up to a higher number, he's not able to put 10% anymore down. You know, he's got to put a lower down payment down. So that, that might be not enough to accomplish buying a house for him at that age. Maybe he needs more resources. The good news is because of what my wife and I have started, we have access to a family banking system. This one tool that we're looking at is just one piece of the overall system. So if he needs a little bit more capital, we'll be able to help him get that accomplished. But he's going to have to return whatever he uses, he's going to have to return to the system because we're trying to teach him how to be a good steward of, of his money. Now, of course, over a good period of time, assuming, you know, kind of the typical Canadian national real estate average of appreciation over that time frame, yeah, that could turn into a pretty decent sized house later on. If we flip over now to age 40, maybe he wants to look at an income property, maybe he wants to do a different kind of investment of some nature or start a business again. He's got access to a good chunk of capital. Now really thing that's important I want you guys to understand here. In my example, how many years did we start funding this thing for 20 years up front. So now that my son is 40 and we started at age zero, no new deposits have gone into this system for 20 years. What if we kept depositing money into it? How much more value would be here and accessible for my son? More important, how much would be accessible for me? We're going to get to that in one more second now. I'm going to jump ahead 10 years. Age 50. Most people are in some of their highest income earning years. You know, you've got some skills, you've got, you've taken some courses, you've, you maybe you got a couple of degrees under your belt and you're, you're generally in a good income earning position at this point in time, which is pretty typical. And you want to start growing and doing some more things. Well, you've got a good amount of capital available put into another type of investment, whatever that is. Maybe it's investment real estate, whatever it is that you know and understand. And if you could grow that again at a reasonable rate, what can you turn that into? So we're stacking these things on top of one another while this core program that the tool that we're using is really just the, the foundation of everything else that we're building on top of it later on. Now I'm going to take a look at something we call the legacy position. So what is the amount of tax free death benefit that this insurance contract has available? My son, what age 20. There's over 437,000 in there. As he grows in these later years of life, it gets to be a pretty high number. Now that means that the next generation, the grandchildren that I don't even have yet because my son is only 6 years old, are already being protected from, from some future event where we both know there's two guarantees in life. One of them's death and the other one's taxes. Okay, well he's going to have a tax free exit at some point in time the day that he's gone and there's going to be a rollover event of tax free money going to the next generation. Very, very impactful what you can create when you have a system like this in place. Now this last Tab is really, really important. And what I really want us to zone in on is this piece that says continuing contributions. So I only put the capital in $200 a month for the first 20 years. But what if I continue to put more money in or my son continued to put more money in? So here we are, starting from that, that 20th year position. What if he continued to fund, let's say 100 bucks a month and he continued doing that all the way until about, you know, age 70 or 75. What would that create? Well, you can see down here in our graph, this dark green bar is when we didn't continue funding and the, the orange bar is what happens if we continue putting money in over and above that. So there's a pretty dramatic difference here where we've created a very substantial increase in what's available. Now, what if we actually continued funding it all the way, 200amonth for that whole time frame? Well, it's really interesting to take a look at. You know, it says grandparent, but in this case it's the parents. It's me. I contributed 48,000. I was going to save for education anyway. I wanted to give my kid a leg up. When I started, I actually used the Canada child benefit to kickstart this plan, you know, early on. And at some point in time when my son takes over, if they contribute all this, the total contributions over that lifespan was only 180,000. But what is our output? Like this was the inputs, this is the output. It's a substantial increase. And on top of that there's also a tax free death benefit that's available. So this is the real power of what we can create when we implement a strategy like this. If you could have implemented something like this, or let me rephrase, if your parents, your parents had implemented something like this in your life and you have one of these when you turn 20 years old, or even when you turn 40 year olds, or even when you turn 65 years old and all of a sudden they handed it to you and say, here you go, junior, this is yours. What would have happened in your life? How would your life be different today? If it would be awesome or amazing? I mean, stress free. You got it. The impact that you just put yourself in that position, recognize how that would feel if it were you. Now imagine you have the power, you have the power to do this for your own children and your grandchildren. It is momentous. What can be done when you understand the power of uninterrupted compounding within this kind of A platform. Now here's one thing I really want to show you guys. I'm going to go down to these, this orange bar and I want to highlight a couple of ages. Now at the time that I started my son's policy, I was about 34 years old. And so I'm going to shoot forward. I'm going to add 35 years onto that. So if we go 35 and 35 takes us to about age 70 for me, everybody with me on that. So my son's about 35 years old and I'm roughly about age 70 in this example. If he keeps funding it or I continue to fund it, which is what's actually going to happen. There's $156,000 of what we call cash value or asset value inside of this platform. So let's, let's think about that for one second. So we've got 155,000 and that's when Richard is at age 70. Now notice if I highlight the next increment, If I go five years out, in fact, let's go 10 years out. So from 35 years to 45 years, there's $284,000. Okay, everybody see that? $284,000. So over the 10 year increment, it goes up to 284,000. Well, that looks to me, and I'm just going to keep it really simple, like about $131,000 total increase over a 10 year period from here to here. Now if that increase happened over 10 years, I'm 70, that takes me up to 80. Could I or my wife not start using some of that financial value for our retirement to supplement our retirement? Now, I've said that I set this all up for my son, but that's not really accurate. I set it up for the family. My son's going to be the ultimate person to benefit, but he's not the only person who gets to benefit. My wife Heather and I will also be benefiting along the whole time frame. And, and we will additionally be able to benefit at passive income time. So I can start implementing a strategy that allows me to take tax free passive income off of this mechanism and still be able to pass it on to my son where he can use it for his own retirement. So everyone gets to benefit from this process. I'm going to literally show you exactly what I'm going to do on my son's policy. The key takeaway here is that my son, by the time he gets out to, you know, this age, he's got A much higher financial value because he's continued to fund it. You know, it's somewhere around the $830,000 mark. And so if I use some of this portion while I'm around, well, eventually dad's going to be gone. And when dad's gone, dad also has insurance and my insurance will be there at that point in my life. So there's going to be a tax free windfall event and my son will be able to replenish his pile of capital so he can use it all over again for all of his needs in retirement. It's a very phenomenal and powerful way of integrating the family's financial life so that everyone benefits and you can be mutually profitable with one another and you don't need to seek outside resources to accomplish the things you want to get done in life. So here's little Nathan. Of course, this is a few years back and this is what I actually set up for him. So the policy said it was about $2,000 a year, not the $200 a month is what about 2,000. There's a minimum portion and there's a flexible portion. So I have a lot of flexibility still with this. When I started this, I used the Canada Child Benefit. Now when I began this process, there was a different government and the amount that we received was about 160amonth and it was just flat and level for everybody. And so since that time, you know, that's changed and it's different for a lot of folks. But that's how I began this contract. Again, Nathan was about 6, 16 days of age when I got his policy in force and I was 34 at the time. Now my goal, my plan is to fund this consistently, my wife and I, for 35 years. That takes me out to age, to age 70, like we talked about. That means I will be putting in about $70,000 of savings over that 35 year time frame. Now when I turn 70 and all the way to age 95, which, when you include 95, that's actually 26 years, not 25 years. I'll be able to take out, just out of my son's policy, about $9,000 a year, tax free as a supplementary income to my other sources of income. It's one bucket. So just imagine you have different sources of income that provide passive income for you when you choose to, you know, have retirement. And we, we'd say we're coming around here too much, but passive income is what our focus is. And in this particular example, we take that over 26 years. That means a total of $234,000 in income that I'll be able to use. My wife and I just off this one tool, not including all of the other things I showed you. My son using it to start beginning his own savings, maybe being able to use it to get a down payment on a house, using it to fund his education, returning capital back to the machine where we're all working together, Family vacations, all the things that we did before my son even turns 18. Ski trips, probably a car that we needed to buy that's going to house, maybe some hockey gear, whatever he decides to get into.

Right.

There's more. And that, of course, is Nora. You remember I showed a picture of Nora earlier. Here's another one. This is a little Nora when she was 16 days of age. There's a little paper click back here. And that is actually the application I submitted to get Nora's first policy. And there is these guys, of course, hanging out in the podcast room with me. So I effectively created almost the exact same application for them. The only difference is that it's a little bit newer. So there's. Nora's hasn't been around as long, and the fact that she's a female versus a male is a slight difference on the starting death benefit, but they're basically the same. So the result of that is if I can get 9,000 of income from Nathan's policy, I'll just times that by two, and I can get basically 18,000 between the two kids combined. That's a pretty healthy supplement to retirement income for 26 years. That's a total of $468,000 that I got out. Yet what did I put in? Well, when I'm gone, the kids can still use it because the policy is still in force. So if dad kicks the bucket and I decide to graduate off planet Earth, I'm no longer here. The kids can still use it. They can become the owner at that time, and they're going to be able to do all the things that I was able to do with it and whatever their imagination can really determine. So let's talk a little bit about this passive income. I want to show this to you. I don't want to get too worked up over the numbers. I just want to walk you through where this came from. So starting at my son's age, 35, so I'm 70, we're going to do 26 years. I'm using a loan where we're actually taking a loan off that policy so we can create A tax free passive income. Now here, walking through passive income. So at age 70, this is where I'm at age 70. It's my son's policy. He's still a young man at that point. You can see there's a little column here that says annual bank loan and that's $9,096. So I said 9,000. But are you guys okay if I take 9,100? You aren't be upset with me if I take a little bit more, right? I don't think Nathan's going to be upset, but I hope you guys aren't upset either. Now I'm doing that for this period of time again, because I'm including age 95, that's actually 26 years. And there's a break right here because this is actually a snapshot of two different pages. So just imagine that there's 26 full years there happening. And at that point in time, here's another really important point I want everyone to understand I'm funding it for the first 35 years because that's my choice. That's what I want to do. How you want to do your system is up to you. That's between you and your coach and how you work it out when you design this. But for me, I want to continue funding it because I plan on using every dollar I put in. I'm going to have my kids take over funding it when I turn 70. So now they're able to contribute more and then they're going to get every dollar they contribute back into the system. Now a key thing I want you to see here, there's a column that says bank loan balance. So you see there's an increasing loan balance that happens here. And at this point in time, I'm 95. So if dad kicks the bucket here, there's an outstanding loan on Nathan's policy. Well, I want to make sure that I can cover that. The way that I'm going to do that is dad already has his other assets and he has insurance that's just like this. I've got way more of this stuff, what you see on the screen than I have for Nathan. So when dad kicks the bucket, a boatload of tax free money is going to show up and there'll be direction that they can pay off the outstanding loan. And it basically resets the whole system back to zero. So if you guys take a look, there's a column that says cash surrender value. And you can see at that point in time there's about 546 grand. Inside of this machine, and it's growing at a pretty good clip. Well, that means all of that financial value will be available for Nathan and a similar amount for Nora. Now, this is all pretty good, Richard. Sounds great. We like what we're seeing here. But what if you want to do more? What if I have more money to deposit? What if I want to get another plan of my kids? Can I do that later? The answer is yes. In fact, that's exactly what I did three months ago. I decided to crank up two new policies that I own and control as another place where I can deposit capital so I can build up my capital resources for all the things I'm already doing in life. And I wanted to get new ones on my kids. So I got two new policies and I started brand new ones on my kids about three months ago. By the way, this is a picture of us in that family banking meeting here earlier this year. So policy two, it's a little bit larger. I decided, not anyone else, not my. Not my advisor, not the insurance company. I and my wife had a discussion. We decided, how much do we want to contribute to a new plan to build up our savings resources for all the things that we're doing in life? And we decided on $3,600 a year. Now, out of that, there's a minimum required amount, and there's a flexible amount. So we always have to fund the minimum. But the flexible portion, we can pick and choose when we're going to fund it throughout the year. So when we have a tax refund or when we have a really good month, or, you know, when the kids aren't in school and we're not paying for daycare, like any of these things that can happen, and we're able to inject that extra capital. The key is that we have a minimum portion and a flexible portion, and the total is 3,600 for the year. Now, Nathan and Nora are now 6 and 4 at this point in time, I'm going to now contribute for 30 years instead of 35, because I want. I want to hit that same age 70 target number. That's $108,000 I'm putting in. And that means that we're going to be able to take out about $12,000 a year from those policies each. So 12,000 from each policy on top of what we could do from the first policy. Now, assuming all that, that means 12,000 times two, of course, is 24 grand a year. So this is, you know, policy two from both kids, an income that my wife And I can take for 26 years. That's an additional 624,000 of income. We deposited 216,000 and we are going to be able to get out this. So this is what we put in 216. This is what we get out and the policy still enforced for the kids. Okay, so let's summarize this. We got policy one and policy two. We put money into each one of them 35 years one's for 30 years. The total parent inputs for each child is about 178,000. The income we have for each, we have 9,000 and 12,000. That's 21 grand total per kid per kid for 26 years. So we take 21 and we times that by two. Which means that the combined total is we're going to be have about $42,000 of annual tax free income potential we can generate off of this savings vehicle that will also accomplish all of the other things I showed you kids. Education, down payment on a home, funding a wedding, down payment on a house, helping invest in other things. All these other things that we want to accomplish for our children and we ourselves want to accomplish. So I'm going to get about three times more out than what I put in and the policy is still in force. So if I pass away and I'm done, the kids, between all policies, four policies, if we combine all of it together, the total asset value for both kids will be about $1.3 million. When dad kicks the bucket at 95, okay, all the outstanding loans will get paid off and a self sustaining system is created. I want to introduce you to my amazing colleague, Roman. Roman gave me two thumbs up as you can see for my presentation here. And now I'm excited to bring Roman and he's going to walk you through his family banking system and some of the unique perspective that he has and what he's been able to put together for his own family. Roman.

Thanks Richard. Let me share my screen. Great, great presentation. Thank you so much. Great value.

I watched this presentation but I really, really enjoyed this presentation so far. So this is my family, not actually exactly all family because right now I have seven children. And this picture was actually taken back before, just one year before I.

Discovered the infinibanking concept. You know, came to Canada. We loved, you know, living here and I was really concerned about, you know, how to save money up for children's education because I knew it is, it is important. So Pushkar family system. So right now we have seven amazing family children and the resp. Plan was started back in 2015. Why? So in the first two years, I didn't really know nothing about educational plans, but I knew that I need to do that. And first of all, I knew that at some point some of them may go to school. Not necessarily all of them, but some of them may need to go to school. I was also concerned about the cost of education in Canada because we all know that it is not cheap, it is not free. Right. So and if you multiply this number by six children at that time, then this number was really huge for me as an immigrant. And when I talked to some financial advisors, actually was sold on the government contribution part. How about government contribution part? Do we factor that in? Do we look at that? I looked at that. I knew that it was great. Right. So I looked at it as a minimum 20% rate of return. In fact, it is not. Because all of this money is not basically guaranteed because all of this money is exposed to market risk. If you invest into resp. And also, what happens, Richard, may I ask you what happens if your children don't really go to school? What happens if they end up not taking this opportunity?

Yeah, a great question. And I mean, if. If you don't go to a qual. Whatever the. They determine as qualified school, then the grant money you don't get to keep. Now if there's been gains on it, you would get to keep that. But the actual grant money has to be. Is designed to be utilized for what they consider an approved education mechanism.

Yeah. Thank you so much, Richard. Yeah, absolutely. So this money can be actually taken away. So not necessarily. This is a 20% rate of return for me. Right. I was also hoping that the money performance can provide stable growth and protection for my investment.

And I looked at the average rate of return as presented by financial advisors, but this number is actually deceitful because this number is averaging not only positive but also negative returns in a specific year. Right. So if you look at an average rate of return.

Especially when there are some negative years, then the average always is higher than, than the actual rate return, than the annualized rate return. And I didn't know any better. Right. So I didn't know any better than resp. The only other option was just to save money in a bank. Right. And I decided to open a family resp plan for my children, for my six children by that time. And the funding source was a government Canada child benefit. So. So not all of it went into the resp plan. I started at $100 per child per month. And Then I just wanted to see how it is performing, how it is growing and if I can predict how much money can we get when the time is right. So this is my plan for the children. As you see, this is my statement. I started this in December 2015 as a family plan for six children. Six children are the beneficiaries. And I was really hoping that this will work. This will be a great source for the children's education when they need to go to college and university. And then I started receiving investment statements from the company and I was really happy about, you know, some positive return, 7%. And at some point I, I started seeing some red, some negative numbers, right? I started seeing some negative numbers. I knew that it will smooth out, it will go back eventually. And I was really hoping that it will work out, but I didn't really have much time, right? And then at some point I saw big dip at about 12%. And I was really concerned, is this the right thing for me to do? Is this the right thing for me to put not only my money into the RESP plan, but also the government contribution money? It is also exposed to the same risk. It is also exposed to the same negative. And then I was concerned, what if the market crashes when my children go to school? These are my main concerns about the RESP account. So first of all, we started relatively late.

For example, compared to Richard, right? Richard started the policies for the children when, when they were.

Small. But he started thinking about, you know, education, about having access to capital at very early stage of life. But for me, my son, my oldest son was actually 10 when, when we started, when we came to Canada. And when we started, he was 10. Now I knew that they will need to borrow money anyways. Even with my contributions, even with my savings, with resp, I knew it would not be enough, right? They would still need to take some students loans from a bank. Let me ask you this question. So what is the chance that all six of my kids, now seven would go to university? All of them? So this is exactly what I was thinking, that not all of my children may even go to school, right? So what happens then? So the dad is actually working hard to put all this money aside and not being able to access it. And I made up not even having them to use this money ever, right? So I'm putting money away, making it inaccessible for a big family. And this was a huge deal for me because you know, for a big family we have lots of expenses, we have lots of things to buy, we have music classes, we have, you know, transportation costs. Our children go to private school first of all. Right, we need to pay for that as well. It is not expensive, but still it is kind of monthly expense that comes out of the bank account. So. And if I send money away, I'm basically locking it up in a prison because I can't really use this money. These were my main concerns about the RESP accounts. I didn't really like it and at some point I decided to actually lower down the contribution. I lowered down from 700 per month. I lowered down to 500 per month and then to 200 per month. Month. Another one, a big one, was that the investment was exposed to volatile markets. Uncertainty about the outcome was. Was there. So I wasn't really sure how much money my, my children will have. And let's say the, the oldest may go to school, but what about the youngest? What. So will they have anything left for them? I wasn't sure about that. And at that time I started looking for different strategies. And one day I came across YouTube video talking about Nelson Nash. I wasn't really sure what it is about infinite banking concept. So I decided to dig deeper to learn more about this. I actually watched Nelson Nash film, documentary film about Nelson Nash about his great personality, about great, great person who discovered the new way to use whole life insurance. I knew about whole life insurance at that time, but I wasn't really sure how to, you know, how to use it. And apparently I was shocked when I read Nelson Nash's book becoming your own banker that you can make it a savings account or a bank with a death benefit attached to it instead of, you know, just buying whole life insurance. So I was really surprised that this existed. And this looked a much, much better alternative versus my RESP account. Even considering the government contribution part. I knew that I would not be getting government contribution part if I if I replaced my RESP account with a new banking machine banking system for my children. But still having access to liquid capital today was far more critical, far more important for me than waiting for seven or 10 years and then having children have access to this capital and then taxable capital and not knowing how much the account will grow. So I was really, really inspired by Nelson's personality. He was a man of faith. I'm also, you know, going to church and I really connected with him personally. I love this man. I wanted to meet with him, but it was too late. Nelson sadly passed away just one year before I discovered the infinibanking concept. I never had a chance to meet Nelson Nash. And that year actually my youngest child was born. And you know, I decided this is a perfect time to start an infinite banking policy for each of my children. And actually decided also to name my youngest child after Nelson Nash. And his name is Rudolph Nelson. And I thought it would be perfect example of someone starting, you know, becoming his own banker at 0.

Years age. And throughout life he will be independent from banks. He will have something very powerful in life. He doesn't know it yet because he's only one year and nine month of age. But dad and mom created something very significant for the whole family and for him as well. So let's look at how we started this banking system. So seven amazing children, one whole hockey team. So we started at 2020. Ages at the policy start were 15, 14, 12, 10, 8, 5 and a newborn. And then my decision was I was going to fund this program for them for 25 years from my age 45 to 70. And then the contribution I was going to do about $100 per month or 1200 per year per child. Altogether the amount I'm putting to these policies is 1200 times 7 children is 18, sorry, $8,400 in deposits per year for all children's policies. I should mention that not only I started policies for them, I also started policies on me, on my wife. This was very important note because you have to actually have a life insurance in place in order to start a policy on your children. But I will be really focusing on the cash value and what is possible to do with only their policies. So let's compare my banking system with resp. So first of all, parents can access policy loans anytime and use their own capital. And it is not in a prison as RESP is. When children turn 18, they have access to capital from a family bank. So not necessarily they have to only have access from their policies. They can tap into my account, my policy, my wife's policy at that time, and they can borrow from anything they want. Not necessarily just for education, not necessarily, you know, for books and tuition and stuff like that, but they can borrow for anything they want. For example, my son Vadim, he just borrowed from the family bank to purchase his digital camera. He's 16 and turning 17 in August. And he read Nelson Nash's book, he loved it. And in fact he also has his own account already. But he tapped into our account, into the children's policies to borrow from it and to purchase a digital camera. And how much more can we achieve if we're not restricted? Richard already mentioned that and I'M super grateful for that because, you know, when you think about all the weddings, all the cars, all the businesses that children can start with this money. So the importance of not being restricted is very, very important. Children, like I mentioned, children can use capital for anything, not just education. Like resp. The account value is designed to grow. It cannot go down. It can never go down in value. So this way we are getting predictable outcome. Right. What else is possible with these policies? So what else is possible with whole life policies versus Resp. Resp. Resp is only for education. If the children don't use it, then the government will take it back. But the policies can be used for something beyond that. Like Richard mentioned today, there is something unseen and something else can be done with these policies. Can these policies be also used to augment passive income for Roman and Natalia? Yeah. And the answer is whopping. Yes. Yes, of course. So let's look at how I, as a parent, can use my system of policies that I built for my first, for my children. Can I use it? Use them personally? Yes, I can. So let's summarize. So I'm putting 8,400 per year. So I'm depositing 25 years of this money into whole life policies for the children. The total deposits is $210,000 from my age 45 to my age 70. So I'm making deposits for 25 years until 2046, and then when I turn 70 this year, after that, the kids will be responsible for paying annual premiums. This is the plan. It may work out, may not. So again, Richard, I know that you wanted to share about what happens if someone, some child says, you know what, I'm not going to be paying for this policy moving forward. So.

What would you do in your family if you got the situation?

Yeah, I mean, I'm a bit of a hardliner when it comes to that, Roman, So thanks for asking. I mean, ultimately, you know, the way I have it set up or how my intent to do it is that if, if my kids, you know, as I walk through, I'm going to pay for it for a certain number of years to age 70, like you're identifying. And then I'm going to ask the kids to pay for it. If, if they don't want to do that or not willing to do that, well, then they're not going to get what I've spent a lifetime building for them because that means they don't have the right mindset that they're not. They're not really switched on with what we're trying to accomplish. And so I would rather go and give all that value to a charity, to a church, to fight cancer research, any of those kind of things that I think are valuable because they've proven themselves not to be a good steward. I want to raise good stewards of the family banking system because if they're not going to manage it well, that means they won't continue it on properly for the next generation. And the next generation.

Absolutely. Thank you so much, Richard, for your comments. Absolutely. There is incentive for them to continue making payments because they will get all of their money back at some point. And if they don't want to do that. Absolutely. So I will do that for them. But then they will not have access to the family banking system. So ages of the kids when I'm 70 are now 25 to 40. So my oldest will be 40, my youngest will be 25. I will maintain control. Me and my wife, we will maintain control over cash values the whole time. What I mean by that is all those opportunities, they will come by, I may take advantage of them. I may, you know, use the cash values from my children's policies to bank with them, to take policy loans, to take those opportunities and replenish my banking system. So the kids future families already will have insurance protection in place. So I did something significant for them. I protected their insurability. I made sure that regardless of their health, they have something in place already.

And this is what happens when I turn 70. I start taking passive income from their policies. I want to emphasize this again. I will be taking passive income from my own policy as well. But I'll only be focusing today on the passive income from children's policies. So $3,500 per policy per year will be coming out as a passive income. And by the way, it is tax free to me as a parent. And basically I will be taking this income for 21 years, total of $25,000. So 3500 times 7 is $25,000 tax free. In 21 years we will spend $525,000 of tax free passive income, me and my wife, only from their policies. So at that time when we start, I'm 70, Natalia, my wife, is 63. So the average income is roughly 3,500 like I already said. And when I pass away, there are more policies on me. Right now I have two more policies on me. They're big policies. And the death benefit when I pass away will be around 8 to 10 million dollars. Absolutely. I will have more policies moving forward but if we only talk about these two policies, then the death benefit will be about 8 to 10 million dollars. I'm also planning to tap into those policies for passive income. And I'm going to spend majority of this money while I'm alive. So there will be tax free legacy for the children as well. So net death benefit after I extracted majority of my money from my policies is going to be $2 million. This $2 million will cover 1 million outstanding debt on my children's policies. So like I said already the total income that I used was $525,000. But the outstanding debt when I am 90 will be around close to $1 million. So the goal is that my death benefit, net death benefit after my passive income is going to cover for this outstanding loan for the kids. And Natalia will also get about $1 million tax free legacy. Basically. So she is at that time when I'm 90, she is 83 and $2 million comes out and takes care of 1 million outstanding. She will still have have 1 million tax free she can use for additional income on top of any government benefits from. So basically she can do anything with this money. And when she passes away, she also has her own policies and net estate value to work with when she passes away. So basically it will be a secondary event for the kids for their legacy as well. Let's look at what is possible after we're gone. So starting at 70 years old, children will be able to start taking passive income. So when each of my child turned 70, basically I calculated how much income can they be taken from the same policies their dad and mom took from their policies already. So this policy is going to be serving second generation already projected passive income for all of them for all seven of them between age 70 and 90, which is 21 years old, including 90 years old as well. Right. Is going to be for the oldest $13,000 per year totaling to $273,000. And for the youngest $27,000 per year totaling to $567,000. Why there's a big difference between them is because the youngest child is going to contribute for longer period of time than the oldest one. By the time they turn 70, the oldest will pay annual premium for 29 years and the youngest will pay his premium for 44 years for 15 more years. That's why his passive income is way higher than the oldest ones. The oldest reaches age 70 much earlier. That is why as well. Let's summarize. So combined passive income for all children over 21 years combined all of them will receive combined total of 10, $2.5 million. That is average of $359,000 per child. And they will also leave a tax free legacy to the third generation of a combined $1.2 million. That is average of $188,000 each. Meaning that this one policy per child will serve, will serve three generations. They will serve me, they will serve my children. And they will also leave a legacy for their children as well. And what is the total deposits made by the kids? And it comes to 470k combined, all seven children combined. For the for the lifespan, let's look at money in. So Money in is 470k, money out is 2.5 million plus 1.2 million. So money in is 470, money out is $3.7 million. That's many, many times more than the money in. And let's summarize what the infinite banking policies created for the next generation. So both families, Roman and Richard created multi generational capital pool for major purchases. Access for opportunities that will appear during their lifetime. Passive income for both parents and children and their grandchildren. Legacy as well, right? Tax free death benefit for third generation. Insulation from stock market and other market risk factors. Safety, security and a peace of mind reduces the cost of wasted premiums over the child's lifespan. Meaning that they don't really need to purchase additional insurance. They don't need to spend money on term insurance and other types of insurance because they're already protected. They have insurance in place. Peaceful, stress free way of life, independency from government programs to solve their problems. So you know, moving from registered account that is really limiting and restricting our ability to access capital and to use our money. Moving from restriction from prison to money that is not limited, that is not in a prison. That is you have absolute ownership, ownership and control over this money makes really big change in our lives. So I'm going to pass it back to Richard.

I'll just carry on here. So this is our process. We call this the infinite wealth plan. And really it's a six kind of step process that we walk people through. Our goal at Ascendant Financial is really to educate and empower. We want our clients to be in the driver's seat of their money. That's the whole focus here. It's not about taking over control of money. It's about giving you more control over your money and giving your family more control over it. So you have a profitable financial strategy that you can control. You know we have Nelson's, obviously his five Rules here, we didn't really get into that. But what I really want to focus on is, is these steps. And we begin at education and empowerment. Part of this session today is about that and we have a whole host of other opportunities and education material that can provide that for you as well. To become your own banker call, please make sure that you schedule that call. Very important that you get that done because you're going to, you can learn a ton there, you can ask questions and it's what's going to help you get set up to meet a coach. Once you meet a coach, you can actually start digging into your circumstances. They can understand your family dynamic and you can ask the questions that are unique to your circumstances. So you need to be able to work one on one with a coach. Now you want to have your custom plan design that's part of, you know, as you're building things with your coach, they'll work with you to figure out based on what's going on with you, how can they build that design up. Then they'll get our client services team initiated to help you get applications up and running. They'll walk you through all that process. And then once you get that first policy, or perhaps you're doing a number of them because you have multiple kids, etc. Then you go ahead and you have your kickoff meeting and that's where the real stuff begins. With our lifetime coaching, access to our membership site and our quarterly group training sessions and all the amazing stuff that we have, our community of like minded people, it's really, really something powerful to be a part of. Now I have a couple of final thoughts I want to leave you guys here again. Remember, if you haven't already done so, go ahead and text the word schedule and so you can get that appointment booked in. But here's a few final thoughts I have for everybody. And I'm going to play a little video here of my daughter Nora. And just imagine when you play this, having conversations like my daughter I'm having with my daughter Nora here at the family banking meeting. Being able to do that with your kids and your grandkids where you can exercise the power of their imagination in a powerful way, in a way that links you together, where conversations about money are actually fun and engaging and, and powerful and they're a learning opportunity and they're a profitable opportunity for everyone involved.

Did you, did we have fun on the family bank meeting? Yes. Did we talk about everything we're grateful for? Yes. Who else did we talk about?

Nelson.

We talked about Nelson. And is that book pretty special? Yes. And you have a copy signed by Nelson, don't you? One day when you're older, you're going to get that copy. Yes. And it's important. Every year we talk about the family bank. Family bank, hurrah.

All right, that was in La Quinta, California, a few months ago. So, yeah, my daughter's a wizard at this. She knows about the family bank. We talk about about it pretty regularly. And she knows that when we take money out of the family bank, like for a vacation and things, we have to put the money back in. And I always ask Nora, I said, nora, why do we have to put the money back in? She says, so we can use it again later. And I give her a big high five and a big hug. And we're locking in those powerful lessons so that they can. They'll be with her for her whole life. This vacation is one stepping stone to lock in the power of what our family bank is doing for her own life. The key thing we want to do here is we want to help you start your journey, to make it a multi generational one. We, you know, there's a saying, I believe it's Ghani, that, you know, be the change you wish to see in the world. Well, I think we want to be the change you wish to see in your financial life. That really starts with you on this call today. It starts with the vision you have and what you want to see, the legacy you want to leave with your kids and your grandkids and how you can. You can be profitable in a lifelong financial strategy that crosses multiple generations. Roman, I appreciate you, man. Thank you for sharing your journey, for sharing your family system with everybody today, being open to what's, what's. What's been true for you, and wow, what incredible power that you're going to be able to generate for those seven kids and as a family. The conversations, your family banking meetings are going to be epic. I mean, I can just imagine all. All you guys are together, There's a big spread of food going on. Everyone just Nelson's book is there. Like, it's going to be a lot of fun. So, you know, thanks for everything you do, man. I really appreciate you.