Becoming YOUR OWN Banker | Transform Your Banking Practice

Do you believe in compound interest? Name one business that uses compounding to grow its own wealth. Banks. And how does bank grow wealth? By keeping money. Doing what? Because of money to earn compounding, it has to sit still. Then it can compound the very same institution. Business makes us believe that compounding is the best way to create more wealth. The very same institution is not using it. Do they know something that we don't? That's what you're here for today. It's about becoming your own banker. Also, the money that is not in motion isn't worth anything. Money has to flow to meet your needs, purchase the goods and services, including investments that your family needs. So money has to flow. Let's follow the flow of the money. Privileged to be here and share a unique family banking system. And I call it unique because each family bank is uniquely designed to suit the client's needs, whether it's personal needs, corporate needs. Now on Nelson's book, what's the title of the book? Becoming your own banker. Right. You know, what's the two most important words in becoming a banker are your own. That's what it said. It's uniquely designed, customized to everybody's needs. My needs are different. Jason's needs are different. Taran's needs are different. Richard's needs are different. Jonathan's needs are different. It's all unique. We started our journey back in 2016, but a placement agency in Edmonton downtown, David Aplin called me up and they said, hey, you have the most interesting resume. I said, I know I made it.

But I so appreciate the phone call. Like, hey, have you met Jason Low? I was like, I don't know Jason Low. Like, I think you should meet Jason Lowe. Because from your resume, what we see is that you need some guidance, some coaching. You should go meet Jason Low. And that's what I did. I had to wait two months to get into his calendar just to have a first one on one interaction with it. I'm so privileged to be part of ascendant financial life, Eva, and other great things that we're going to build together. But I'm so privileged to be starting right here, sharing my own journey and my own family banking system. So I call it the life plan. Why? Because we use whole life. So I took the life from whole life and I put the plan right next to it. Because how long do you have the need for use of money life plan.

Using the family bank now, may I ask? And I'm going to get some feedback. When you think about the word money, what comes into Your mind's eye. Energy. Perfect. What else? Opportunity. It's a tool. Anything else? Freedom. When you have a lot of it, then stress may be too. Power. Money is what? A medium of exchange. Remember the barter system? You may not remember the barter system, but in the barter system you have to trade goods to get other goods. And then we created this and we called it money. We assign value to money, but the value is in our mind. Knowing that the money has value and it can buy things. It can buy goods, it can buy services. It can pay for things. It can buy investments. That's what money is, right? It's an exchange. It's a medium of exchange. Now, money that's not in motion isn't worth anything. Do you believe in compound interest? Name one business that uses compounding to grow its own wealth. Banks. And how does bank grow wealth? By keeping money. Doing what? Because of money. To earn compounding, it has to sit still. Then it can compound the very same institution. Business makes us believe that compounding is the best way to create more wealth. The very same institution is not using it. Do they know something that we don't? That's what you're here for today. It's about becoming your own banker. Also. The money that is not in motion isn't worth anything. Money has to flow. To meet your needs, purchase the goods and services, including investments that your family needs. So money has to flow. Let's follow the flow of the money. Think about all the things that you're presently spending money on. You don't have to share it, just in your mind's eye. Just think about all the things that you're presently spending money on. You have a picture in your mind of what's happening with the flow of money. What are the things that you're buying? Using your money on a day to day basis. On a weekly basis, bi weekly basis, monthly basis.

This is you. Do you have a mortgage payment? Today.

You pay for your mortgage payment. Objective accomplished. Providing a roof for your family. Which direction is the money flowing? Is it towards you or away from you? When the money flows away from you, is that an asset or liability? Do you want to convert your liabilities to your assets? Then you have to have the money flow towards you versus away from you. Do you have a car payment? Which direction is the money flowing? You have to pay for credit cards and lines of credit. Which direction is the money flowing? Have you ever purchased appliances? When you bought appliances, what happened to all that money? House remodeling. Has anybody remodeled their house? What happened to the money? Furniture money is gone. Vacation money is gone. Clothes money is gone. Property taxes, food, both payment, healthcare, investments, medication, charitable causes, car or physiological. Which way is the money flowing? In your own mind's eye. Add up all the payments that you are presently making on things that you're using your money to buy today. I'll give you 10 seconds to get that number in your mind's eye. How much of that money do you have today? Does it feel like leak? Do you feel like there's a leak in your system today? The reason why there's a leak is because you're familiar with the function called banking. You're doing this all day long because nothing happened to the flow of money without the function called banking. You're doing it all day long. But the issue is how much of that function are you truly controlling today? The more function you control, the more reverse of that money flow is going to be. The more it's going to come back to you and your family and your system versus having to have that money and say goodbye to that money for everything that you're going to buy from now till then. Becoming your banker is all about creating your own private family banking system so that you can control 100% of banking function as it relates to your needs. Show of hands if you're ready to discover this, say yes if you're already implementing it. All right, so if you become your own banker, what happens to the flow of money and how much risk do you have to take to have the money flow back to you?

The only thing you have to do is change how you go about banking and that's it. You can still do exactly what you intend to do with the money. You can still have a house, you can still take your family for vacation. You can buy investments, you can buy food, clothes, do the charitable donations, pay for medical expenses, pay for cars, pay for insurance. But you're just going to change who is now getting the money. Give it your close attention and it can make a radical improvement in your financial future. And we are living proof of it. Clients who are practicing, you can already see it happening. You can see the progress that's happening. You know, we live in a world or in an era of instant coffee, instant coffee, instant tea, instant this, instant that. Do you think there's something called instant gratification?

If there is, please let me know. I've been looking for that for 38 years. There's gratification for sure, but nothing instant. Now, have you ever paid cash for things, goods and Services. I call that losing interest method. Do you know why? Because it's not paying interest anymore. When you pay cash for anything in your life, how much of that money can you reuse again? How much interest can you earn on that money again? So I call it lose interest. It still helps you accomplish your objective, but the money is gone. Have you ever borrowed money from a bank and made a big purchase? House, cars, investments, etc. I call this method paying interest. And why do I call it paying interest? Because you got to pay interest to use someone else's money. So either you lose interest or you pay interest. That's what's been happening most of the time. You're familiar with these two methods. I'm going to make you familiarize with the third method called recapture interest. Because if you truly want to keep the money in the family or your business, and if you truly want to have the money flowing towards you, this is the method. And that's the essence of becoming your own banker. That's the essence of the family banking system called recapture interest. Show of hands. If everybody is familiar with the word recapture interest. If you're not familiar with recapture interest, by end of my talk, you will be familiar with recapture interest and the power it has. All right. Creating life plan using family bank. Now, Grant Cardone. Does anybody folks in the room know Grant Cardone? Heard of Grant Cardone? Follow Grant Cardone. I saw this from Grant Cardone on Twitter. He says people believe what they see, not what they hear. So show it to them. Don't tell them. So I'm going to show you my own family banking system and the power of recapture interest, personal family banking. I'm going to start with exactly what Jason got started with when he talked about car financing. So I'm going to talk about car financing. And here's the reason why. People spend more money financing cars over a lifetime than they would ever save for retirement. Is it a fact? Think about how many cars you have financed in your lifetime so far. And financing means paid cash, traditional bank financing, leasing, and add up all the money that you spend on financing cars, you have that number in your mind roughly approximately someone may have 20 cars. Then you can do the math on 20 times the average cost of the car. That's how much it costs you to buy those cars. Now ask yourself this question. How much money do you have from buying all those cars? If all you want to do with the family banking system is take over the financing function of all the cars that you're going to finance in your Life going forward, I can promise you you're going to be in a very good financial position. And one question that I get asked all the time is, hey, this is really good. Cerebral. Where should we get started? How much should we put into the policy? I said, what's the two most important roads in becoming your own banker? So your own. So you decide how much you want to put in. The more you put in, the more you get. But it doesn't matter how much you put in. You're going to feel really good about putting that money in. Do you know why? Because it's going to work right away. It works immediately. All right. Life plan for Car financing and financial tool. So every strategy needs a financial tool for implementing the process of becoming a banker. Jason talked about it. Folks who are practicing this concept are familiar with it. Folks who are looking into and have been doing some research on this process may have heard about this tool. The tool is called Participating Dividend Paying Whole life policy. So there's these four things in this tool. One is the premium. Premium is your deposit into your family banking system. And you're going to hear me repeat many things today because repetition is going to be a best practice. I got literally 60 minutes to talk today, so I'll be repeating many things because I want to get the message across. Who determines the premium? The insurance company or the policy owner? Because it's about becoming your own banker. There's death benefit. The premium buys death benefit. That's a fact. Because it is life insurance. Because you buy death benefit, certain contractual guarantees kick in from the insurance company right away. The first contractual guarantee is payment of what? In the event of what?

Did you know that we all have our best before dates? We just don't know what that date is. It'll be easy to solve for life insurance if you know exactly the day we're going to become an angel. Because it buys death benefit, it creates cash value because of contractor getting teased. And can a client or anybody who's been practicing this for a few years or has been doing some research. Can anybody share what the contractual guarantee is when it comes to cash values in the policy? Jason talked about it a few times. What must happen to cash values every single day? And why does he have to go up? And what does the contract stipulate? Cash values must grow every day to match the death benefit by age 100. Are you one day closer to age 100? Every day. So does the cash flow need to increase every day? Okay, good. Amazing. You guys are so smart. And then there's dividend. And the reason why we get dividend is because of a participating dividend paying whole life policy. By nature of you owning the policy by you, the owner, by the nature of the policy itself, you participate in the divisible profits generated by the insurance company. You get dividends. Now, when you get dividends, who decides what to do with the dividend? The insurance company, the advisor, or the policy owner?

What can you do with the dividend? What are the options that are available to you?

Take it out in cash. That's one option. 100%. Would you ever choose to do so? No. If the cash values must match the death benefit by age 100 and if you increase the death benefit every year, what happens to the daily cash value growth now?

So shouldn't the dividend buy more death benefit?

And if you need access to the portion of the dividend that the insurance company gave you because you need money to put money to work, let's just say thousand bucks. Rather than taking the dividend out in thousand bucks and interrupt the compounding, won't it make Sense to take $1,000 as a policy loan and still have the money grow in the policy no matter what? So everything begins with what?

Everything begins with how we think.

All right. I bought a Nissan Murano. No boost. I like this car. It's pretty awesome. October 2019, and I picked a red color purposely because I was doing some research. I was like, hey, which color would work with my personality? I really like to work hard. And it said red, so I picked red. So the price tag was $35,000. And here's my life plan to buy a car. So it started in 2017. What I'm showing with you is my third policy. But I've had two policies before that and I'll come to that. So March 2017, I'm looking ahead. I was like, you know what? October 2019 is going to be here. How did the last six months go? Quickly or slowly? What about the six months before that? All right, so I kept that in mind as the time is going to go by anyways, very quickly. But I have to start by thinking differently. I have to rethink my thinking. I have to think about how I think I'm going to buy the car in 2019. I have to be ready to finance the car from my own banking system. So I started my banking system. This premium was $20,000. Where does the money go? I was already saving this money in a commercial bank and the money was already flowing because money has to flow. Remember I chose to redirect this flow of money in my family banking function first in my family bank first. It was my decision to do so because I was already flowing the money. I just chose how to flow it differently. The moment the money goes into family bank, what is the first thing it buys? That's the death benefit. $680,000. I put in 20k, I become an angel. How much does my wife get? I put 20k in a bank, I become an angel. How much does my wife get? $20,000. The value of the account. So if I'm thinking long range, God forbid something happens to me, do you think I'm protecting my family? Okay, a moment. It buys death benefit. What happens in the policy right away? What gets created? In this case, back in 2017, the moment I put 20 came to policy as premium. I had immediate access to cash values of $7,200. And right underneath this, it says daily growth is $12 a day. So immediately the cash value start to grow. And why is it growing? Because cash values must match the death benefit by age 100. And I wake up every day. I get older every day. I'm one day closer to age 100 every day. So what happens to my cash values? And if I don't wake up? The death benefit kicks in. If I live a long life, do you think I'll have a lot of growth in the policy? And if I don't, do you think my family would ever have a bad financial year? It worked both ways, so it's pretty awesome. So, and what I can borrow from cash value is 90% as a policy loan. So you can see right away I had a policy loan access of 6480. That's one day. Remember I talked about instant gratification? How long do I have the need for use of money? So how long should I continue to flow the money through the policy? For as long as I can. Now 2017. Now let's fast forward one year. The objective is to buy this car in 2019. March 2018, one year after. What happened to my cash value and why did it increase? Because it's growing every single day. To match the death benefit by age 100. When my cash value increased, what happened to my loan available? I put another premium. What happened to my death benefit? And when death benefit increased, what happened to the cash value? And what happened to policy loan? How much effort am I doing to make sure that this keeps growing? Who has all the risk to fulfill the contractual guarantee? The insurance company. All I have to do is Just put in my money and that's it. End of second year, March 2019, what happened to my cash values? Loan available went up. I put another premium. What happened to my death benefit? Cash value loan available, death benefit increases every year. Cash values grow every day. Loan available grows every day. Now, do I have enough money in my policy loan available to buy a car now? But I wasn't going to buy the car before October 2019. So I still have a few months, right, because this is March. So from March 2019 till October 2019, what happened to my daily cash value growth? Can I take a policy loan and go buy the car? And whose money will I be using? If I take a policy loan, what happens to my capital called cash values in the policy? Is car an appreciating asset or depreciating asset?

But my money kept growing, so I'm appreciating my money as I'm enjoying the car. Does that make me feel happy? There's two ways to access money. One way is you can take a withdrawal. I can call the insurance company and say, hey, I would like to withdraw the cash. And they'll do the calculation in the end, in the back end and say, yeah, if you want money, here's the money. You withdraw the cash. Now, if I withdraw the cash, what happens to the future growth of my policy? So remember, when you pay cash, you lose interest. And I didn't want to do that. So I took a policy loan. I borrowed money from the insurance company and that policy, the $35,000 that I need to buy the car, I took insurance company's money, bought the car. Did that loan show up on Transunion or Equifax? So can I call? So when I apply for insurance, car insurance, did that even come up for me? No, it's private between me and the insurance company. Now, policy loan did not interrupt the daily growth of my cash. It kept growing $20. Because remember when I started the policy, the daily growth was $12 a day. And now in 2019, it's $20 a day. So that growth didn't stop. But when I'm using someone else's money, is there going to be interest on that money? In this case, insurance company? So 35,000 multiplied by 7.7%. Because in 2019, the policy loan interest was annually. This is my daily interest on the policy loan. How much is it and how much is my growth? How am I doing so far? Remember we talked about recapture interest? The process of becoming a banker is about recapturing interest. I recaptured the interest charged by the insurance company in the growth of my policy. If I say to you, give me $6.70 for every $6.70 you give me, I'll give you 20 bucks. How many times will you give me $6.70 now?

All day long and twice on Sundays.

So the recapture interest. So daily cash value growth is $20, daily interest is $6.70. I'm doing pretty awesome now. Jason said this already.

So I'm going to slash Uber with Lyft.

So I'm a Lyft driver. As I'm driving the car, my cash values keep increasing and I don't have to pick up any customers. That's truly what is happening in the system now. October 1st is when I initiated policy loan. And here's what happens in the back end. So I called the insurance company, I fill out the policy loan document, I request the money. And what they do is they send me the money, $35,000, no questions asked, no qualification, but they put a lien on my death benefit for $35,000. So in case I die and the loan is outstanding, they'll deduct it from my death benefit and the family gets the rest of the. And they used my cash as collateral. I had about more than $48,000 that I could access on October 1st. But the moment I requested policy loan, it's not that my cash value is reduced to 13,635. It's just that 35,000 of my cash value was used as collateral. But all my cash value is still increasing and growing in 2019 by $20 a day. And then they issued me the policy loan and I took insurance company's money and bought the car. This is October 1st. See what happened October 2nd, what happened to my cash values? It was 13,635. Very next day it went up to 13,638. And when my cash values increased, my policy loan increased. Very next day, October 3rd, what happened to my cash values? Very next day, what happened to my cash values? Well, on October 30th, this is how much my cash value access increased to. This is how much I can borrow. Now. October 30th is when I started paying back policy loans because I structured my own loan repayments because who is the banker?

Did insurance company ever call me to say, hey, you got to set an amortization for your policy loan repayment? No, I set it up based on my cash flow. And I called my wife, I said, hey, based on our cash flow, how much can we allocate as a policy loan repayment. And she said, well, we can do 500 bucks easily every month. I said, okay, so we borrowed 35,000 at 7% and we pay back at 500 bucks a month. It's going to take us seven years to pay off the loan, which is perfect because I plan to buy cars every seven years. It worked with my plan very seamlessly. Could that monthly payment be a thousand bucks a month in Covid time, do you think I could have taken a vacation from that payment? But if that payment was owed to someone else's bank, can I call the bank and say, I don't feel like making a payment today?

So is total and absolute control important for you? Then you have to become your own banker. So loan repayment. So we decided to pay policy loan back at 500 bucks per month. Work in our favor, in our cash flow. So 30th of every month is when we're making a loan repayment. And it'll take us seven years to pay off the loan, which is perfect because I keep buying cars every seven years. Now we set the family amortization. We have total and absolute control. So October 30th is when the first loan repayment went back to the insurance company. So the moment my family income was used to pay back the loan to the insurance company, because the money for the policy loan came from insurance company, not from my policy. My policy was used as collateral. The moment I make this loan repayment, what happens to my collateral the very next day? And when collateral goes down, do I gain more access to capture more money or to use more money? Here's the best part.

Of becoming your own banker. And I'm going to give you a monthly snapshot of what is happening. Because we think monthly is easy for us to think on a monthly basis. So $20 per day is the cash value growth. And let's assume 30 days in a month. So how much did my cash flow increase in one month?

Insurance company charging me $6.70 as interest on daily basis. So how much is the interest charged in one month? How much is my loan repayment? I pay back $500. My growth is $600. I subtract the interest. So 500 plus 600 minus 201 is how much I pay back 500. How much can I access? Do you have car payments today?

How much are you creating using your car payments today?

Am I also buying the car? No different than how you're buying the car. I'm banking, so are you. But There's a difference that I'm creating as compared to you, who is not practicing the process of becoming a banker. And the difference is coming because of how we go about financing things. And you finance everything that you buy. Have you heard about this? Because when I heard about it, I thought that's pretty awesome. See, everything that we do in life financially is a measure against how someone else is doing. Would you agree? If you are doing well compared to who? If you're not doing well compared to who, it's always competitive. So if I'm doing well compared to who, compared to someone who is not practicing the process of becoming a banker, that's all I'm doing. I'm just practicing the concept. I'm not changing my cash flow. I'm not changing my goal. Now, how many more loan repayments should I make into this policy if this is the outcome that I create? How much of your loan repayments do you want to funnel it through your policy loans? Now remember we talked about becoming a banker is a process of recapturing interest which allows you to have the money flowing towards your banking system versus someone else's. So I have that happening for my car payment. Am I stressed? I still have that car. You live in Alberta. It's got a crack on the windshield.

So here's a question for you. Will more access to capital upon policy loan repayment take away any of my options? In fact, did it create more opportunity for me because I pay back 500, I can access 899. So remember I said this policy was my third policy, 20,000 per year, which I started exclusively for the purpose of financing cars every seven years. The first two policies were started in 2016. The premium on the first policy was 5,000 per year. The second was 2,400 per year. The premium for these policies came from my rental cash flow. So I used the net cash flow. Someone else was paying me that money. It was flowing through the books of someone else's bank. I just redirected that cash flow into policy as premium. And this came from my earned income. I get this in client meetings all the time. Hey, to do this, you have to be making a lot of money. Where did I get started? At 5006. Second policy. Remember I said when you get started, you're going to feel really good about it? Why? Because it's going to work right away. So it doesn't matter where you start, you're going to feel good about it. But have a coach in place so that he can show you exactly where you should get started so that you don't make the mistake that I did. It took me almost two years to get going with $20,000 per year in policy. My first one was $5,000 because I broke Nelson Nash's second golden rule. Do you remember his second golden rule? Well, do you remember the first golden rule? What's his first golden rule? Think long range. What's the second golden rule? Don't be afraid to capitalize. Do you think I was afraid to capitalize when I got started? Say yes, that's on me. I have my own control on family bank. And I started low, but then I didn't stop after this. So all those premiums go into family bank. All these policies are on me. I'm the life insured. All these policies bought what? Death benefit? When death benefit gets created, what gets created? When cash value gets created, what gets created? And if an opportunity comes up for you to access capital, do you want to take your own money call cash values, or do you want to take a policy loan and then create that wealth? So everyday cash values must match, must grow to mass death benefit. So pay attention to cash values and policy loan. So what happens? Is it good?

And then every year your death benefit increases. Right. And when death benefit increases, what happens to cash value? Point to note, you don't have to live till age 100 for total cash value is to match total death benefit. That's a myth. The contractual guarantee says the cash value will match death benefit. It'll still grow even if you don't make it till age 100. And I get this question all the time, hey, so I have to live till age 100 for this to happen? No, no. You have to just wake up and get one day closer to age 100. And this will happen.

Every day you wake up, you're one day closer to age 100. Cash values increase. Teaching point is, it doesn't matter what happens in the financial world outside the policy, your cash values keep increasing. Have you heard of stock market? Bay Street? What's your podcast called?

All right, so when stock market goes up, what happens to your cash values? When stock market goes down, what happens to your cash value? When crypto goes up, what happens to your cash value? When crypto goes down, what happens to your cash value? When interest rates go up, what happens to cash values? When interest rates go down, what happens to cash value?

So that's boring. That's really boring. Yes.

Because total cash values must match total death benefit by age 100. I think you get the gist now. Can we move on? Okay, good. Will more access to capital. So I asked this question. Will more access to capital after policy loan repayment take away any of your financial options? And you all said no. Any real estate investors in the room? Carissa, can I ask you a question? All right, it's a very simple question. You're a real estate investor, right? So I rent. I have properties that pay me. But where do we stay? We rent. My rental agreement came up for renewal November 2019, right after I bought the car. I had access on the same policy, plus the other policies I had. So, Carissa, I'm your tenant, and I've been with you as a tenant for a few years. I keep the property nice and clean. I pay my rent on time. My rental agreement came up for renewal, and my rent, Carissa, that you are charging me is 1800 bucks a month multiplied by 12. That's 21,600. Easy math, right? That's how much I was paying for rent to provide a roof for my family. And I called Carissa and I said, hey, Carissa, if I pay you the rent for the whole years of rent, is that going to help you financially? If I pay you for the full years of rent, will it help you financially? And I asked Carissa, I said, hey, are you sitting down? Because I'm going to ask you another question. Because she said, yes, absolutely. Perfect. Then what discount are you going to give me? Because I want to make a win win deal. Can an investor like Carissa get money up front and do a lot more with that money versus receiving that money every month? She values that. She values money up front. So she came back and said, cerblo, I'll reduce your rent to 1500 bucks per month if you write me a check for the whole years of rent. So 1500 multiplied by 12 is $18,000. What was my original rent for the year?

What is my new rent? Where did I get this money from? I told Karissa, give me seven business days, equitable, deposit the money into my bank account in 48 hours. I wrote her a check. Whose money did I use to provide for my family a place to stay? What was happening to my cash values? So I was paying 1800 bucks a month, but now I have to only pay her 1,500 bucks a month, because 18,000 divided by 12 is 1500 bucks a month. And I take that money and I pay back my policy loan, 1500 plus interest. What do I do with that arbitrage that I just created for myself?

1800 per month down to $1500 per month. What's my arbitrage now? Investors? Do you understand arbitrage? What's the arbitrage?

$3,600 a year. 300 bucks a month. Here's what I did. Well, I took the insurance company's money. I talked about that. My rent reduced. That's a 20% rate of return just on rent. Did I invest money to get that rate of return? No. I just asked the right question. Sometimes we just don't know what questions to ask. If Carissa would have said she won't say no to me, but if Carissa would have said no to me, I'd have taken that deal somewhere else. That's 20% just on the transaction. And I'm not even factoring in my cash value growth in the dividend. That's on top of that. So the difference I took with approximately 3,000 of that added $6,000 for my own earned income. And I started another policy. I married at that time, so this policy is on my wife. We are diversifying also. The first three policies on me, the fourth one on my wife. The moment I started another policy. What happened to a death benefit in the family bank? Do you think now my cash access is more in the family bank with the start of another policy? Do you think my cash value growth is much more now that I started another policy? Do you think my future dividends are going to be more when I start another policy? More means what? More opportunities? Does having more take away any of your options? So my death benefit went up, my cash value go up, my policy loan go up. And it just keeps happening. It's boring. My daughter was born. We were blessed with daughter. She's wonderful. She's going to be year four next February. The kind of question she asked is just too much. But I still love her. She's amazing. So we started her first policy for $5,000 per year in premium. This is our fifth policy. We were getting about 200 bucks a month as a child tax benefit. Our own taxes were coming back. So I just took that money, added some from our earned income and started a policy for her. Do you think at 30 days of age she could have started a policy for her by herself? Can she do that? No, I can do it as a parent, but she cannot do it for herself. So I did something for her that she cannot. What is Nelson Nash's first golden rule? Think long range. I'm thinking long range. Is that small? 5,000 per year in policy going to produce a lot for her? Going forward and when she's ready to take over the policy, you think I'm just going to give her the policy for free?

This was day zero when she started the policy. Let's just say she's 30 years old. How much premium did I put into policy? 5,000 per year for 30 years. 30 years. Let's just say she's a good steward of family banking system. She comes to me, she's like, I want to take over the policy. I said, great, you can. You got to reimburse me for every money that I put into policy. $150,000. If she doesn't have the money, where do you think I can get the money.

From her policy loans? Well, you promised me you're going to be good steward, right? Well, show me you're a good steward. Pay back your policy loans and then the asset is yours. Would you ever buy a house, pay it off and give it to your kid and say, hey, take good care of it?

Do you think that house would turn out any good? Same applies to this. They have to pay attention. When they pay to it, they will pay attention. Otherwise they won't. And we were blessed to. I'm blessed to have amazing dad. And he said, you know what? I'm going to do exactly what you do. And here's a gift from me. And we start another policy on my daughter. So these two policies, my daughter, the first three on me, the fourth one, the middle one is on my wife. So when we added all those policies into a family banking, we added two more. Now what happened to a death benefit? When death benefit goes up, what goes up? You remember I said I'm going to be repeating many things today. Do you think I was lying? So when death benefit goes up, cash value go up. When cash value goes up, what happens to policy loan and what happens to opportunities? More opportunities come. Cash values increases Policy loan increases Total death benefit increase one time per year. The moment you start a policy, you have an increase in death benefit. Cash values increase every day daily Cash value growth receive more dividends. The more I put in, the more I get. Now when we have readily available access to capital, does the opportunity come strike you? You become an opportunity magnet. Life plan using investments Jan of this year was properties kind of appreciating in Alberta for a long time a lot of real estate investors made a lot of money. So we just got lucky. When we got in this deal January 2022, we did a flip on the property. Opportunity came to me. Real estate deal. There were two people that are Required. I didn't have enough money in my own system. We have to build a system to capitalize on big opportunities. But I had enough to be a second joint partner. So it was two of us. Capital required $180,000 to buy this condo. Purchase price 160,000. Renovation was $20,000. You add these together, that's $180,000. Investment per person is $90,000. So I took my money from where? Where do you think my investor buddy took his money from? He lock.

He still had access to capital. He just used someone else's bank. I used my banks. But the outcome was completely different. We both obtained the same objective, had same access to capital, but we created different outcomes because of the process that we used to obtain the objective. Turnaround time was three months after renovation of the property. And after renovation, we were expecting the fair market value to be 220 to $230,000. So our exit plan was in case we can't flip the property, we can rent it out. That was our exit plan. So we always have the exit in place before we get into it. The capital came from life insurance policy policy loan, $90,000 daily cash value growth $40 per day. Now how do I know what my daily growth in the policy is? I look it up.

I log into my portal today and I log into my portal very next day. The difference is my daily growth. And the daily growth becomes better every year after policy anniversary. That's all I have to do now. Daily interest. So I took that policy loan. And this year, insurance companies interest rated policy loan is 6.2%. I'm not happy about it. So 90,000 multiplied by 6.2% divided by 365. Because the simple interest is charged on daily basis. This is the daily interest. This is my growth. How am I doing when it comes to recapturing the interest? Pretty good. And policy loans are going to be repaid after I sell the property. So who is going to pay back the policy loans?

The investment? When I take policy loans to buy consumer products, cars, vacation, I pay back policy loans. When I take policy loans to buy investments, the investments pay back policy loans. That's how it's supposed to be, right? You're the banker now. Renovation got completed April 2022. There was just small renovation, nothing heavy you have to do. And then we accepted an offer. $220,000. March 2020. Everything just lined up now. We purchased the property, $180,000, sold it for 220. Here was the closing cost that was required on the property. Our gross profit after paying everybody was 33,900 on the deal. And after paying taxes approximately which will come next year. So looking forward to that.

We each end up making $13,000. Policy loan interest was 1395 over three months. The policy growth was how much per day? $40 a day. Right. How many days in three months?

What's 90 times 43,600? Interest is how much? Still doing okay. But I also created what Because I had access to capital, I could have capitalized on opportunity. So net profit after paying the policy loan back is $11,000. So I repaid the policy loan and this was the interest. 1395 Daily Cash Value Growth $3600 over three months. After paying $91,395 for the insurance company immediately just from that loan repayment. I could read once 92,205.

Because I'm recapturing interest. I'm not interrupting the growth of my cash. Where else can I pay back 91,395 and have access to 92,205 without qualifying?

Isn't that good?

And I have dividends and I have death benefit. So the growth that I had was not just from the transaction of the investment itself, but also in the policy itself. Net profit 11,605. I took 10,000 of that. Start another policy. Now I just don't take money from investments. Start a policy. I have a plan in place to sustain the policies also going forward. I want to make sure anything that I take from passive income, I'm able to sustain it going forward. Passive incomes are responsible for these premiums. I can sustain it for my income if I wanted to for a year or so. But I want passive income to pay all those premiums that I'm using my passive income to flow into the policy. Just started with one policy. We all start with.

One. And then up until now, how many do I have? All that money was flowing. Where or where was it going to flow? Through the books of someone else's bank. That's where the money was going to flow. But I changed the flow of money and I flowed it through our family bank, which created death benefit, which produced cash value. And cash value produced what? Policy loan. My death benefit goes up, my cash values go up, cash value go up, Policy loan increases and that message or that stuff happening. The policy continues no matter what. I had some other opportunities to do some private lending in real estate. It was $55,000. It started early 2022. And then these deals are Coming back to me in 2023. So the money has been lent for a year. It was $55,000. Where do you think the money came from? Policy loans, interest charged. So I charged the borrower. I'm the lender. Insurance company gave me money. I'm the bank. I give the money to the borrower. I'm charging 15% interest received back every month. I have $687,000 coming back every month from this deal. 687 interest charged by the insurance company. $9.34 on this policy alone. $112 a month. So again, my question, how am I doing so far?

I'm not even factoring in anything else. The cash value growth and dividends and death benefit daily cash value growth $33 a day. Now you saw $20 in one policy, $40 in the other policy, $33 in this policy. Because I have different policies each policies grow differently. So this growth is from the policy loan from that particular policy. So policy cash value growth is 990 per month. Passive income is 687. Insurance is 112. What's 687 plus? Let's just 1000 bucks. That's 1687. In my family wealth growth. And I have to pay $112 to create it. You think I'm doing okay?

687 minus 112. That's 575. What do you think I'm going to do with that money?

Any guesses?

More policies, more banking systems. So here is my policy. Total premium 56,400. What I'm showing is personal policies. I do things in the corporation also. This is just personal policies. Total loan available as of a week ago. 118,145. Total policy loan outstanding. So those private deals, I still have some loans to pay back on my car. Total death benefit in the family on all policies. $3.4 million daily cash value growth on all policies is 54. I wake up, my wife wakes up, my daughter wake up. We have a great waking up party.

Daily interest on policy loans. So this is the interest on policy loans that's outstanding right now. So how much interest am I recapturing in the growth of my policy? Becoming your own banker is a process of recapturing interest. If you recapture interest, this is what you will create for your family too. But if you are paying cash, you're going to lose interest. If you borrow money, you're going to pay interest. This will never happen. I will leave you with this. Creating family bank needs understanding. Would you agree? That's what we're doing today, right? Requires discipline to implement the idea. And discipline comes with where? With what? Mindset? Thinking. But also coaching. But it can change your life dramatically, even beyond your fondest dreams.