Before You Take a Policy Loan WATCH THIS !

If you're going to access money from your banking system. Yeah, we have the great luxury of uninterrupted growth within our policy system because our total cash value in the policy system has to rise to match that total death benefit. Every day that Roman and I take air into our lungs and our family members because they're all insured, our access to capital is increasing. That cash value is growing every day. However, I can go and borrow out as much as I. As much as I have access to, I can keep borrowing it out and borrowing it out, borrowing out. And if I'm not repaying those loans, if I'm not being a responsible banker and setting terms in terms of how I'm going to pay that back, I'm stealing the P's and I could wind up just like the First national bank in Midland, Texas.

Okay, Canada. So you've put in the work, you bought the book, you watched a ton of our content here on the Banker's Vault. You've now met with your coach and you got a policy in place. Okay, so now once you're at that stage, then what, what do you do? How do you actually start to implement the process of becoming your own banker? Track your policy loans, make sure you're being disciplined in following Nelson Nash's golden rules, making sure, most important, you're not stealing the piece. My colleague Roman and I are going to show you today the top tips how to track your banking system. You're going to want to stick around to the end here because we're going to give you some absolute gold. Here we go. Sometimes in life when you set out to do something, you get a little off track, don't you?

Oh, yeah.

How important is accountability? You and I have some confessions to make here on this call, don't we?

Yes, we do.

We have to be honest with our Canadian viewers. And the good news is there's absolutely nothing wrong, Roman. This is a part of life. This is a part of learning and building and growing. You and I have course corrected and we're implementing a lot of discipline here. But why don't you share with our viewers what am I talking about here? What are we confessing today?

When I learned the infinite banking concept, when I started practicing, everything was going very smooth and exciting, and I really enjoyed applying for policy loans and using the insurance company's money. This is amazing. So my money is growing, but while I'm using insurance company's money. But I was really falling short on keeping track of all my loans. Every single policy loan has to Be kept track of. Nelson Nash always said, don't steal the piece from your banking system. And the only way to never steal the piece. As I figured out in my own financial tracker, every loan that I take out has to have a repayment schedule in place. I have a luxury of not doing that. But I can really forget about why I took this loan out in the first place and then forget about repayment schedule, forget about putting more P's on a shelf, meaning putting more money in my banking system. So if I treat my banking system as a, I would say like a revolving line of credit, this is one way of looking at it, then I can actually going back and forth, back and forth, like up and down with my balance that's owing. There is one product on the market many financial advisors are referring to, where you put all your money into one banking account and then you basically borrow from it. You pay your mortgage and then all your income goes in and then all your expenses goes out. But that banking account really is great tool for a bank to promote their banking services. Why? Because if you're not disciplined, you will end up spending all your equity in house. You will spend up all your income. You have to have a repayment schedule in place.

Specifically at a bank, they have these like all in one mortgage products. And the idea, in theory, is a good idea. When you think about the conventional way that people do banking. You want to pay off your mortgage or your line of credit as quickly as possible. Why? Oh, if I pay it off quick, I'll pay less interest and then I won't have that payment anymore to make. But the bank is pretty slick with this product because they understand that most Canadians really don't have a lot of discipline when it comes to their money. So first of all, they're actually convincing you that it's a good idea for you to give them more of your money. They don't have to go out and find new lenders because you've taken your 100% of your paycheck and you've applied it to this mortgage or this line of credit product. So now they've got all of your money, they're putting all of it to work and it's not working for you. All it's doing is saving, quote, saving you a bit of interest. And then you spend a little bit and then you get paid again. The idea is you spend a little bit or less than what you put onto it and hopefully you're beaten down that balance and you pay it off quickly and you're saving know that most Canadians and you save on interest, but we know that most people are spending sadly more than they're making. So they're just going to hover or keep going up and then maybe a little bit down and they go back up and then a little bit down. They don't actually generally make a lot of progress with that unless they're being extremely disciplined. So the first thing is money's not really working for you, it's working for somebody else. What we're doing is very similar. We're shifting that. We're making the banking process work for us. What happens when you become the banker? Just like what Nelson would, would teach us. And I'm going to touch base on not stealing the piece for our viewers to make sure that they're clear about what we're referring to there. In Nelson Nash's book on, I believe it's page 17, Roman, he refers to starting a business which you are both the seller and the consumer. Just like the process of banking, I'm a consumer. I need access to money and loans and I have to use money in my real life. But if I become the banker, well, I'm also the seller. I'm placing the loans as well. Well, that's like a grocery store. That's the grocery store example Nelson uses. If you were going to start a grocery store, you now are the grocery store owner. You're distributing the groceries. Well, you also need groceries. Last time I checked, if you're a human being, you need to eat groceries and live life, right? So Nelson's saying if you owned a grocery store, you wouldn't go and buy groceries from someone else's grocery store because you're giving that energy, that financial dollars to someone else. You're stealing money from your own business because you could be purchasing them, those groceries from your own grocery store to make that money work harder within your own business. Banking is no different. Why on earth would I store my capital, my, my hard earned money at someone else's bank when it gets put to work at that bank? And then I got to jump through hoops to access my own money and then make payments back to them and permanently transfer money away from my family? By implementing the process, becoming your own banker and creating your own warehouse, creating a dividend paying whole life policy system that's structured correctly, ideally with a mutual company, you can use that policy system to perform the banking function. And so when we talk about not stealing the peas, Nelson's talking about if you access groceries from your own grocery store, you gotta actually Go out the front door and pay the retail cost, if not more than what your customers are paying. Because if you go out the back door and you take those groceries out because you've already paid wholesale cost for those groceries, you're actually stealing from your own business. And you don't really realize that a lot of business owners convince themselves that they can use their own products and services and not pay for it. Because, hey, I'm the business owner. I can do what you want, what I want. And this is the discipline that we're exactly what we're talking about right now. I'm running my own banking system, Roman. I can access money out of my own banking system and not pay it back. No one's going to bang on my door and hold me accountable to do that, except for me. Isn't that right?

Yeah, that's absolutely right, Vern. You know, having access to liquidity, having access to capital is great. And in both situations that we just described, you do have access to liquidity all in one account or whatever it is called. You do have access to banks liquidity, you can tap into this debt, but what you're doing, you're actually going more into debt. And you may easily lose control of all your expenses. And let's say you see like a boat on a sale, or you see like a trailer on a sale. Whatever you need for your household, you may say, you know what, I have equity in my house, I can actually tap into that and then, yeah, so I will, you know, save on interest. So I will be still in the positive.

It's not that Roman and I were not paying back our loans because we were paying back loans, but we were being very disorganized or sporadic about it. Oh, hey, I gotta standing.

Yeah. Have up to this point.

Yeah, I got a couple of extra, you know, I got extra money or I had a bit larger income this week than I expected or whatever. Hey, let me just throw that extra money into the policy. And you're just not really tracking, it's kind of going up, it's going down. What you can access, I mean cash flow is always going up, but what you can access, those loan balances, not really tracking it. What Roman and I are talking about here is when you become your own banker right now, if you go, and we're just using that all in one banking system as an example, but if you put your house up as collateral and you get a mortgage and you get one of these all in one banking systems, you are two of the four characters in the Financial play. Most people don't know that there are characters in a financial play and they definitely don't know the roles of those characters. So Roman and I, all of you Canadians watching today, you are a depositor. You earn an income. Money's coming from somewhere, it's got to be deposited. You are also a borrower. And we won't get too far into this, Roman, because there's a ton of content where people can learn more about this. Go to watchibc.com, that's watchibc.com so you can get access to a 90 minute webinar where you can get a high level view of what the process of becoming your own banker is all about. And in that webinar, it'll expand on the grocery store and the characters in the financial play. So you're a borrower. And Nelson taught us that you're always using borrowed money because you're either borrowing money from someone else's bank and you now have to make a payment of interest and principal back to that bank on their terms. So you're either paying interest or you, you use your own cash and you spend that money and you permanently transfer away the opportunity to grow that money. So you're either paying interest or you're giving up interest that you otherwise could have earned. So that's why we say you're always using borrowed money. So you're a depositor, you're a borrower, but you are not the banker and you are not the bank owner. And Roman, the banker is the one who is giving you access to the money on their terms. They're going to tell you what you're going to pay, what the interest rate is and the terms and all of that stuff. And the bank owner is the one getting all of the money and the one who rightfully so, because they're the one who has the cash in the first place. So they're setting all the rules and getting all of the money now by implementing the process of becoming your own banker. And what Roman and I are about to dive into is how we've implemented discipline to be responsible bankers. Because we're depositors, we're borrowers, but we are the banker. So we're the ones issuing the loans to ourselves and our family, and we're the ones setting the terms of those loan repayment schedules. And we're also the bank owner because every penny that we pay back to our system, we get to go back and reuse again. Plus access to cash that's growing every single day. So it's an ever increasing pool of financial value.

Don't forget you need to be an honest banker. If you're just a banker, then you may actually ruin your bank, right? So we've seen many, many banks where bankers don't really treat their.

Capital so they treat it as a free capital. If you treat your capital as the capital that cost money, if you borrow from it, treat it as capital that can otherwise earn income somewhere. When you borrow from your banking system, treat it as.

Fulfilling or replenishing the lost opportunity cost. Charge yourself, be an honest banker. This is a very critical thing to understand because if you're just a banker then it may be is not a good thing just, just to be a banker, but be an honest banker. And that's why Nelson actually introduced this whole idea of the grocery store and the whole idea of paying, paying back yourself with an interest. For me, when, when I, I realized that every single paycheck that I put into the premium, let's say I'm paying my premium. So this money is already set aside. Now I save this money, this capital started compounding every single day. If I treat it as already saved money, already saved capital, then I will treat it. When I access policy loan the same way I will borrow from it with an intention to pay it back and put more money in. If I treat it as a free capital, then I can be borrowing back and going back and forth and lose track of all the repayments and all the loans and all the interest. I don't know what's happening in my banking system. If my accounting in my banking system isn't right, my bank is in danger.

A case that comes to mind is September 1983, First National Bank, Midland, Texas, the richest city in America per capita at the time, had a loan portfolio of $1.5 billion and 26% of those loans were non performing. That is they were not getting paid back. And you know how that happened? It's because those loans, a lot of those loans were issued to the shareholders of the bank. Well, they were the bank owners and the bankers, they were the ones setting the terms and they were not paying back those loans. Now I won't get into all the reasons. You can find this story on page 19, bottom right hand corner of Nelson Nash's book. And if you don't have a copy, certainly go to our bookstore and get yourself a copy. But it's an amazing lesson. What Roman and I are talking about here is if you're going to access money from your banking system, yeah, we have the great luxury of uninterrupted growth within our policy system. Because our total cash value in the policy system has to rise to match that total death benefit. Every day that Roman and I take air into our lungs and our family members because they're all insured, our access to capital is increasing. That cash value is growing every day. However, I can go and borrow out as much as I have access to. I can keep borrowing it out and borrowing it out and borrowing it out. And if I'm not repaying those loans, if I'm not being a responsible banker and setting terms in terms of how I'm going to pay that back, I'm stealing the P's and I could wind up just like the First national bank in Midland, Texas. And if I don't put money into the system, if I'm not being responsible, my banking system can collapse. Because those are non performing loans. Banks like loans because they attract a stream of payments. So be a responsible banker and send payments back to your system, Roman. Show us how we get that done. How do we start to create some structure around that?

When I started my own banking system, I took loans, took out loans, and I was sporadically, I wouldn't say sporadically, I was paying them back, but not on a consistent basis. First of all, because my income wasn't consistent, which is normal, which is okay, but nevertheless I had no repayment schedule in place. I was kind of missing payments, which is also normal, but I wasn't keeping track of how many payments I did and how many payments left. Now I decided to fix that. And what I did is I actually put all the outstanding policy loans in one spreadsheet. I put together all the outstanding policy loans and I decided like when and how I'm going to be paying them off based on the, you know, my income and cash flow that I have. Then a comfortable number of payments and comfortable number of the.

Biweekly payment. So you can, you can structure it either biweekly or monthly. And yeah, if you miss a payment, that's totally fine. When you made a payment, you just mark it here as a payment made. So it just happened today that I paid all of those payments, all those loans back. The I made the payments of. It comes to 1100 something dollars and then every two weeks see it at.

The, you can, Sorry Roman, you can see it at the top there, which is really nice. It shows your total outstanding loans. 27,882.37. And it actually shows the BI weekly payment there. 11, 29, $28.84. So it actually tells you exactly what, what you need to pay back?

Yes. So actually this outstanding loan is already an amount that after I paid off this.

Made this payment, right?

That's the loan balance including the interest. And we're paying back more, right? We're paying back 10% interest on our loans.

Yeah, I'm paying back about. So the loan, the insurance company is charging 6.2% but I'm paying back actually more than, than just 6.2% if you multiply. So let's say this second policy I took out of my oldest son policy, his name is Vadim. So the outstanding balance was 1449,8. So the interest accrued is 171 since I put it in into the tracker. And the first payment was today, August 12, 2022. And then I decided on 24 biweekly payments which is just under one year. And then the last payment will be June 30, 2023. And then the payment is $66.04. The outstanding balance right now is 13.76 because I already made this payment. So one payment is made, 23 left. Gonna be showing two numbers here. So first number is the number of how much I will be paying off this loan, how much piece I will be putting on a shelf. Back on the shelf, right. So multiplying 24 periods times 6604, 24 periods times 6604, this is how much I will end up paying to this policy loan. So outstanding is 1440 and 98 cents. The repayment, all the money that comes back to the system is 158496 cents. Now I wanted to share how much insurance company actually needs. So if you multiply 1440 and 98 cents multiplied by 1.062, which means that the principal plus the interest for the whole year, you will see that insurance company needs back 1530. So my interest, sorry, my outstanding balance is 1440 98. My.

Principal plus the interest is 1530 $0.32. Do you see the difference?

Absolutely.

It's about $54 difference. What is that, Fern? Do you want to expand on that? What do you think that is?

That's where again in Nelson's book, circling back to the grocery store example, he talks about buying cans of peas that wholesale costs 57 cents and they're being sold for retail at 60 cents. So I could fill up my grocery cart and I could again go out the back door and Basically I paid 57 cents for those cans of peas as the business owner. So that would be the principal that Roman had accessed. He's not going to just put back 14, 40 and 98 cents. He's going to put back 15, 30 and 32 cents. But hold on, that's him paying 60 cents. So that's him paying retail cost for the money that he used the capital out of the system. But what he's doing is he's following Nelson Nash's coaching saying don't steal the peas, pay retail. In fact, what would happen if you put 62 cents into the cash register instead of just 60 cents? You got to get Canada that there's a whole lot of capital. Trillions and trillions of dollars is flowing through the commercial banking system right now. And guess who's putting it there? You are. And how hard is that money working for you today? It isn't, it's working for the bank. So Roman and I are sending all of this capital back to the life insurance company which we co own. And if we co own the life insurance company, that life insurance company has a legal obligation to put that money to work to create profit and they're legally bound to share that profit with us in the form of dividends. So every time Roman and I access a loan, if we put $0.62 back in the cash register, that is $1,584.96 instead of $1,498 or 14, 40 and 98 or 15, 30 and 32, we're actually putting a little bit more cash, a little bit more energy, giving the insurance company more capital to work with, to put more money to work, to share with those policyholders. In fact, to me it's an added bonus. That's a no brainer. The banking process is now working for us. But on top of that, Roman, when you pay back $1,584.96, how much of that capital do you and your family get to go back and access again and put to work somewhere else in your real life?

Great question, Vern. I'm glad you asked because I get to access all of this money back as soon as it is in my policy. So I get to access this money again if I need to. So what I will do is I will actually add another line here.

For example, I want to access it to purchase, let's say a new tire for my vehicle, right? So it's about like 200 bucks. I will access this amount from any policy that I have open because I know that on most of my policies I have available loan, loan available. So because of the daily growth. I have access to more and more loan every single day. Plus all this money, all these payments that I'm paying back to my system is immediately re accessible again.

Yeah, 100%. So that's the point that Nelson made in his book too is he said, look, if passive income time came, meaning for a lot of people in Canada refer to passive income time as retirement, but we're talking about passive income here. When passive income time came, if you knew that you would get all of your money that you put into a system back plus more, would you ever object to putting more into the system? And I think it's an absolute no brainer that the answer is no. My tracker is very similar to Roman's, in fact. Thank you, Sean. And it's the exact same tool again. This is a part one of the benefits, the added benefits of being a part of a community working with the ascendant financial team. You're not on your own out there, Canada. There are many, many Canadians right now learning this process and implementing the process of becoming your own banker right now. And we have quarterly coaching sessions where we have hundreds of our clients join. Our entire team is there. We're sharing advanced case studies and actual examples of how to implement and implement the system in your life and how to expand it. And what separates our team from most is that we actually practice what we teach other people. We all have policies, we're all implementing the system, we're all learning and growing right beside you. And I gotta tell you, Roman, implementing this policy, loan tracker, it took my game from here, way up here, like just overnight, instantly. Just like anything else, you can think about something, you can read something, you can learn it. But the minute you actually lace up your cleats and get on the field, you're going to be immediately 100 miles ahead of yourself where you were before when you were just reading the theory of it. So by implementing this practice, Roman and I are both feel extremely empowered today. So we've been doing this now for. Well, I've been, I've been doing it a little bit. Only a few months longer, but it's the exact same process. You can pick it up wherever. Now what Roman was talking about is, yeah, it's easy to think about. This is what I want Canadians to think about. It's easy to go, hey, I know I got to finance a home gym or I need to finance a vehicle. That's what a lot of people think, Roman. They think that this process is all about major expenses. So sometimes when I talk to folks who are a little bit more senior in age, they go, you know, Vern, all my debts are paid off and I'm just kind of in retirement time. And I don't. I think this is good for young people because, you know, they're financing cars and starting businesses and putting their kids through school. I'm not doing any of that. So I don't think this is for me. There's many, many reasons why I think that that's a. Not necessarily a correct statement. But what you got to think about Canada is that you're financing everything that you buy, including your lifestyle. So if you're in passive income time, you're still using money and you're still using banking. And when you spend capital, that growth opportunity is escaping you. So to Roman's point earlier, every penny that we put back in the system, including the interest that accrues. I like this column here, Roman, because this shows me the amount of money that I'm actually recapturing. The amount of interest that I'm recapturing in my system, $3,314.88. That's capital that would have left me or I would have paid to someone else, or that's capital that I would have lost the opportunity to grow by not being the banker. But this is all coming back to my family and coming back to our system whenever we use money. Roman and I are very diligent about tracking what the uses of money are for and not just the major expenses. This is the part about the process of becoming a real banker that many people miss. I'm going to give you an example. I've got this great microphone that I'm talking to you on and the camera that you see me looking at you through. Well, I've got other things that I need to deal with. Yeah, my truck. I'm recapturing all the payments that I used to send to a different finance company. But now that money's coming back, I own the truck outright. But what about going to events with the family? What about my wife's birthday? What about property taxes that I have to pay to the city of Calgary that I live in? What about landscaping projects? What about sending some books out to my clients clients and giving some people gifts. What about gaming for my family? See, these are the expenses that show up that, that are unexpected. You have a certain amount of money that you got to spend every month, and then the kid asks you for, hey, dad, you know, I want to get a video game. Yeah, you spend some money on a Video game. You don't think about the fact that you just spent a hundred bucks on a video game and that that money is gone and it is gone forever. And the only way it's going to come back is if I'm diligent and I put it back. So that's exactly what I'm doing here, Roman. Just like we were talking about earlier. I'm accounting for every single use of money and I'm making sure, even takeout. So if I go to takeout and I buy some food for my family or whatever, I'm going to set up a loan tracker. I'm going to start paying that money back. It's not a lot of money, 260 bucks, but I decided, well, I'm going to make sure that my payments are reasonable for me and my family. I'm going to pay back 23 bucks a month. That's what I chose to do over 12 months. First payment for this new loan comes on August 29th. So this is what Roman's talking about. Here's some of the old loans or the earlier loans I should say that I had that I've already made some payments to. But the ones that are all zeros here, these are all brand new loans. And my payment schedule, they're not due yet. So they're due in a couple of weeks from now. So this is what Roman's talking about. I'm actually going to go through Roman today and I'm going to add up some additional expenses that came up that, you know, just like other people, I use tools, I use my credit card. Right. I'm going to go check out my credit card and I use a policy loan to pay off the credit card. But I'm going to look at those expenses that are above and beyond my regular budget. There was a few things that showed up there, and I'm going to add them to my tracker and I'm going to put a loan reschedule or loan payment in and then I could choose if I want. If I add the loans today, Roman, I don't have to add the first payment to August 29th, do I?

No.

Couldn't I plan for that to be sometime in September 1st if I wanted to?

Of course, yeah, yeah.

Whenever I want, Right?

Yeah. And then it sounds like it's like it's a lot of work or a lot of tracking, but honestly, like, how much time do you do spend, like a month to keep track of all those expenses?

It literally takes me a few minutes, Roman. It took me a little probably Just like it did with you. It took me a few extra minutes to get it started, because when I started my program, I added, I think, 15 loans or something like that, Right? But Canada, you just have to start with one. You get started with your policy. Make sure you're working with a really good coach, Someone like, someone maybe on the Ascendant financial team. All of our teammates are. Are practicing these types of things. Some of the things that Roman does might be a little different than Vern or Sarblo or whatever, but we're all implementing processes and structures, and we have the luxury of benefiting from each other. And sometimes when there's a situation where there's a client maybe has a unique situation, Roman and I will tap a teammate on the shoulder and go, you know, my colleague here has a lot of expense or a lot of experience with that specific scenario, and that person will come in and give us some good guidance around that specific scenario. But when you're working with somebody who actually is practicing the concept, they can walk you through this process. And I have clients right now who have trackers that look like this that have, like, one, maybe two loans on it, and they're just slowly adding another one, adding another one. And really, Roman, when I'm ready to make my payments on that day, I open up my tracker, I make the payment, and I do exactly what you said. I just put a one, a two, a three, a four, whatever number of payment that was. And then everything else automatically updates for me and tracks everything for me, even the renewal dates on some of the loans and the final payment that's got to be made. Ridiculously simple. Takes me a few minutes per month.

Be a responsible and honest banker. Keep track of all your policy loans and recapture all of them. And put more P's on a shelf in your grocery store. Don't forget to pay yourself first. And then you're doing this by keeping track of all your policy loans, not just paying premiums. Paying premiums is great. But also pay yourself first. When you get a paycheck, pay your system first, and then replenish your system that it becomes available to you for new expenses that come up every single day.