Best Way to Pay Off Debt & Build Wealth Fast (That Actually Works)

And we're going to show you through the infinite banking concept how to not only purchase cars going forward and to pay off debt, but we're going to show you how to stop losing money.

A lot of people without a structure tend to ruin things in their life 100% need some an idea what they are to be able to move forward and plod forward successfully.

That's where the mindset and the process of becoming a world banker comes into play.

Here's the thing about buying one of these. A car. No matter how you do it, whether you pay cash, whether you lease, whether you finance, you're losing money faster than a snowman in Florida. You pay cash, poof, money's gone forever. You lease, congratulations, you're essentially renting a car from someone who's laughing all the.

Way to the bank.

And you finance now you're just paying extra to lose money slowly. It's like ripping off a band aid one hair at a time. So what we're going to do, we're going to talk about a totally different game here. We're going to talk about a totally different method. Whether you're purchasing a vehicle, whether you're paying off debt, whether you want to just keep money growing the entire time without actually losing any of it. It's the infinite banking concept. And once you discover how it works in this short video, you'll never look at car payments, you'll never look at your finances in the same way again. So Rich, let's kick it off and to all you viewers, stick with this because I'll tell you, not losing money is a skill set that is often not discussed. And we're going to show you through the infinite banking concept how to not only purchase cars going forward and to pay off debt if that's what you want to do. But we're going to show you how to stop losing money. Rich, what are your insights on that?

Well, I'm a big fan of not losing money. As someone who in the past has lost lots of money through different endeavors, some real estate based, some other investments that I made that probably weren't the greatest, I'm excited about the process of not losing it. Now since I implemented this concept in my life, I could tell you I sleep a lot better at night. Number one, knowing my family's protected, number two, knowing that I have constant accumulation on every single piece of cash value I have attached to an insurance policy every single day. It's a very peaceful, stress free way of life. What's amazing about that is the ability that I can access and tap into it like we're going to describe here in a second to do things like buying cars or paying off third party debt, et cetera. So pretty exciting that we're going to have this conversation. I'm looking forward to doing some demos here, Jay.

Okay, cool. So let's set the stage here. Now let's assume a few things. Let's assume one that, well, let's just do this. We're going to look at, we're going to look at two different car buyers and two completely different futures. But before we do that, let's just set the stage. Let's presume that for the car buyer who's implementing the infinite banking concept that we have at minimum a single dividend paying whole life insurance contract in place, premiums are being paid. We know that the cash value is accumulating on a daily basis. We know that this particular policy owner has readily accessible capital on demand, on his terms and that he can repay policy loans from the life insurance company on his schedule, nobody else's. There's a death benefit associated with the insurance policy, that's a given. And the policy owner has a desire to buy cars and to use the life insurance company's money to make the initial buy and then use his own money to repay the policy loans and be able to re access everything that he repays. So what I'm going to do, I'm going to bring up just a quick slide here because I just want folks to see what you and I are talking about. So let's do this. Let me just share. I gotta blow up the screen. Not quite sure how to do that. There we go. Okay, so Rich, as I go through this, feel free to hop in with me as we jam on this. So we've got two car buyers, two different futures. So we're dealing with Bob, he's age 45 and we're dealing with John, he's the same age. Now, Bob is buying cars the way that we described at the beginning of this video. He's either paying cash, leasing or financing. And for this particular car purchase, he's going to finance it through the car dealership. Now John, he's been implementing the infinite banking concept the past five years. He's ready to go buy his next car. He's going to use a policy loan to do that. Bob has to deal with the terms of the car dealership. So he doesn't have the gold, he doesn't make any of the rules. Whereas John, he's requesting a policy loan. He sets the terms, he makes the rules. Here's the deal. Bob's got a car payment, so he's doling out 12, 17 bucks every single month. John established his own repayment schedule of 1,165 per month. The reason is that when he was sitting down having coffee with Bob, he said, Bob, let's do this. The time's going to fly by anyway, so let's sit down together. After five years, we'll both have the same five year repayment schedule. And let's just see how each of us made out.

We know Bob paid $12,995 in interest over that five year period. John paid $9,912. The difference is Bob paid it to a finance company that he has no ownership interest in. John repaid it to a life insurance company that he co owns already. A very clear distinction, same objective of buying the car. Very clear distinction of outcomes. Bob pays $72,995 over a five year period. John pays $69,912. Rich, I'm going to invite you in for your commentary at the end of this. You're going to love this. Let's fast forward. So first of all, they sat down at the end of year five and Bob said, hey John, how'd you do with this whole infinite banking concept thing? And John says, well, I get to re access everything I repaid plus more. How about you, Bob? And Bob says, I don't have any of the money. I got the car, but the money's gone. Fast Forward to age 85.

Bob gave up the opportunity to earn 476,000 on all that money that he paid just for one car. I've isolated this just to one car. John has $508,000 more in his policy as additional cash value. Bob's Death benefit is zero. John's death benefit is $628,000.

Rich, care to comment?

I do care to comment. I mean it seems to me that the devil's in the details a little bit here, but really it comes down to control. Control is the key element. And one of these individuals had control and the other one didn't. They both got the car, they both needed a car. They made similar payment amounts. Someone was going to get the money anyhow. It was either going to go to the third party lender or bank or the car dealer finance company. The car finance company probably got that block of money from an insurance company anyhow. At least you can read about that in Nelson's book becoming your own banker. But the individual who had the insurance policy and did it that way, he had so many elements of control. Now in your circumstance, Jay, here's, here's what I really recognize. You're giving a high level overview, a summary of the five year period and then you're giving a look forward to the impact of that decision right now at a further period of time in life close to mortality, age, you know, a lot of men are expected according to the statistics that they're going to kick off somewhere around 85. That must be the car that they actually purchased. I guess you're holding up there. I'm hoping it was a little bigger and that they could fit the groceries.

In and that they certainly didn't pay 70,000.

Yes, that's right. But, but here's what I think is really important for our listeners to understand. Yeah, there it's what could have happened in that five year period because life comes up and it rears its ugly head and it kicks you right square in the nuts. Well, what could have happened to each of those individuals? Let's say they lost a job or they lost an income position. Well, that could have really deteriorated their ability to make those car payments. And so the one individual could have said I'm just going to take a pause on car payments with the life company because I totally control that decision. I can literally go into my online banking and I can just turn off an automated monthly payment that I set up on my own and I can take a six month holiday and if I'm committed I'll make up the payments, but I'll do it at my discretion. Whereas the other individual, working with a third party bank, you don't make a couple of those payments. And what's going to happen, you're going to start getting some nasty letters and some phone calls and the creditors are going to start hounding you. And pretty soon some guy named Guido's showing up with a crowbar or a baseball bat and a suit that says, you know, you know, repo man and he's going to drive away with that fancy vehicle and you're never going to see it again and your credit's ruined and you're going backwards, not forwards. So it's what's not on the page, you know, what you've identified. Sure, we can isolate some key elements and all those elements were super amazingly beneficial. But it's what you can't see, it's what's off the page that matters even more. What's the feeling of knowing that you don't have to ever worry about the repo man showing. What's the feeling of knowing that, oh my God, something changed. We, you know, we had to replace the transmission in the wife's car and oh my God, you know, we had a health scare with a member of the family and we had an unexpected hospital bill or we had to get braces for our kid and that was 11 grand. Man, oh man, if only there was a way we could adjust that payment. Well, the infinite banker could do whatever the hell they want because they're in total and absolute control. The power of an unstructured loan is that you get to determine the structure. Now you need the right behavior, you need the right mindset, you need the right coaching, the right knowledge to make sure you're doing that properly so you don't screw it up, because you could still screw it up. You know, one of the things about having no structure or unstructured is that a lot of people without a structure tend to ruin things in their life.

100.

They need some guard rails or at least an idea what they are to be able to move forward and plod forward successfully. So that's where the mindset and the process of becoming your own banker comes into play. Without that element, you could still mess this up. So just because you have the ability to do something doesn't mean you're going to. So that's where you know, the human behavior has a way of, of taking your great analogy or the math you indicated. And it could mess it up if the person doesn't hold true to those elements. If you're going to make a payment anyway, you're going to do it. Who do you want to benefit from the payment? Do you want to benefit some faceless organization with a giant logo in a big building in a downtown core element that's got the word bank on it? Or do you want to benefit all the members of your family who are going to receive one way or another, the value of what you're repaying?

That's such a good point. And the one thing that I wanted to expand on a little bit too. So we remember, right? So Bob, he wasn't practicing the infinite banking concept. He, he certainly had good enough credit. He qualified for financing, he had a payment that he could afford. So he wasn't, he didn't put himself in a, in a bad situation financially. He wanted the car, he got it, he made his payments. But the fact is, is that at the end of the final payment, his 60th payment, he owned a car, but he permanently Transferred all that money away and he would never earn interest on it again. That's just a fundamental truth. It's something that these car examples tend to resonate so well with people because they end up spending more money on these things than they ever saved for retirement. And whereas John, he said, look no different than Robert in that they're both savers. Robert has money set aside, he's a saver, but he's warehousing all that money on the books of someone else's bank. Whereas what John did is he paid premium. So have a look at this, Rich. You're really going to like this. So this is John. So he paid premium. Remember I said he had been practicing the infinite banking concept for five years and decided that he was going to use his policy now as a tool to implement a process. So when he borrowed the money, the 60,000 to go buy the car at the fifth year, he had 80,000 in cash value in the policy. He had more than enough cash value to borrow against. So when he took a loan and borrowed against. Let's see if this annotator is going to work well for me. I'm just going to get a little marker going here and let's see how well this is going to work, Rich. I'm just going to. Here we go. Okay, so you see here that total cash value he borrows against it. He takes a $60,000 loan from the life insurance company. The insurance company placed a lien on the death benefit for the loan balance, not the car. And when he repaid his policy loan. Right, so he was 45 when he bought the car. So right here, actually, that I stand corrected, that was in the fifth year, he had even more cash value. So he repays the loan over the same five year period that Bob repaid the loan. So let's just see.

How things worked out if we go down now. So where are we going to be here, Rich? We're going to be at the 10th year.

Yep.

So how much cash value? Because John, he knew that he possessed the contractual authority to continue paying premium, which he still does. I just wanted to isolate this, to say if he stopped paying premium because he paid the four years of premium, $80,000 plus he paid the five years of policy, loan repayments plus interest. So in total, he put in $149,192. Makes sense. That's clear. So now we go to the 10th year. How much cash value does he have?

106,000.

Almost 107,107 grand. His death benefit? 614,000. How much cash does Bob have.

From car payments?

Nothing.

How much death benefit?

Unless we didn't talk about in the example, like, unless you decided to leave that variable out and he's got something on the sidelines, he's got nothing.

And if Bob wants to go buy a new replacement car at year 10, he's got to go and get approved for the financing again and systematically begin the method of transferring all that money away from him again. Whereas, John, all he needs to do is pick up the phone, call the life insurance company, and say, yeah, would you mind doing me a favor? I'm ready for the next car. I'm going to go and borrow 75k to go get the next car. The insurance company says, no problem. You have more than enough cash value to collateralize that policy loan. We're going to put a lien on your $614,000 death benefit for the loan balance, and you get to control the repayment schedule of that loan. So Bob is saying, wow, we're doing pretty good. And then when Bob passes away, we take him down to age 85, he's no longer here. He was able to finance every single one of these cars that he utilized all the way up to age 85. He left behind in death benefit, $628,000. The cash value was growing at a rate of $22,000 a year, and he stopped putting premium into the contract. And after the fourth policy anniversary, is there anything stupid about John buying cars that way?

Not my opinion. And if he bought a car every five years, which is, you know, ballpark on average, it might not be exactly that. Maybe it'll be 6, maybe it'll be, maybe it'll be 10, depending on how long he limps them around. I mean, that could be seven cars over that time frame.

Let's presume for a second. I'm going to make it even better. Check this out. So, Rich, you're going to love this, because when I put John's deal together, so now we're going to show what actually happens. So let's presume for a moment that John, he decides not only is he going to repay.

What the insurance company called for in the way of simple interest.

He'S going to continue capitalizing his system. He's going to pay the minimum required premium every year after the fourth year, and he views that as his contribution of extra interest, which is not really interest, it's more premium. That's the only thing that grows the policy. So let's see what happened he put in to age 85 a grand total of $330,798. He financed every vehicle that he needed. Let's take him down to age 85.

How much death benefit is there now?

That's a pretty substantial difference. So 1.4 million. One point.

How much cash value?

Oh, 1.1 million. I would say we've got more than double what we had before. It was 508 in the last example when he didn't continue funding or paying himself extra interest. In other words, he, he wasn't, he was being an okay banker, he wasn't being a good banker. He wasn't actually obeying Nelson Nash's principles of paying himself more than necessary so that he could capitalize his system continually for a long term objective.

100%. And the cash value is growing at a rate of 56 plus thousand a year. So if he celebrated his 90th birthday.

How'S he doing in the cash value, death benefit and cash value growth column? If he celebrates his 95th birthday, how's he doing in the cash value, the death benefit and the cash value growth column? Here's the reason, Rich, why that's happening. The total cash value is contractually guaranteed to match the ever increasing death benefit of the policy with no increase in premium ever. It must match by age 100 of the life insured in Canada and 121 of the life insured in America. So every single day that John is aging, what is happening to his cash.

Value, it's going up.

And what is happening every day that he's driving this to the value of this thing going down, Going down. And so he needs the use of these things called cars. He understands that there's only a few ways that he can go about getting them without stealing them. He's got to part ways with money, whether it's cash lease or finance, all of which is a permanent transfer of money away from him, it's gone. But he's not doing that. He just changed the process of who's getting the money and look at how much farther ahead. So if you can do that with cars.

Imagine what life would be like for you. And I'm speaking to you, the viewer. Take a moment and just imagine what would life be like for you if you did that for debt, if you did that for.

Real estate, if you did that for business equipment, if you did that for anything that you would have otherwise paid cash for, leased or financed. Just imagine what life would be like for you. What possibilities does the infinite banking concept open up for you. But you need a good coach, and that's where we come in. At Ascendant Financial across Canada and the United States, we're serving people just like you every single day to not only explore the possibilities that this concept brings to you and to your family, but to take action and actually implement them so that you can realize the same benefits that John is every single day. Stop dealing with depreciating assets and start building wealth through the implementation of the infinite banking concept. Makes sense.

One of the beautiful things you identified, Jay, is the impact of quote, unquote, paying yourself more interest. But that interest is simply a representation of the act of paying more higher, a higher payment, fundamentally. But making sure that that excess is actually being applied strategically to a future objective. It's being applied in this case as premium to keep the machine going. Now, in the example you used, it worked out to about 380 bucks a month of excess. Well, there's a couple of ways that could happen. You know, when you had the two car payments up for the individuals, the third party bank, the payment was a little bit higher anyway. So you could say, you know what, I'll pay a little bit more. I'll pay an extra $200 a month. And he would only been $100 a month more than the other gentleman. And okay, so we're still missing a little bit to fund the rest of that premium. Well, yeah, he can save an extra $182 a month, or he might. There was more loan available there. So what if they also took his family on a vacation and that vacation was, you know, $15,000 and whatever they went to Disneyland or whatever they did, he's got a loan repayment schedule going on for that. Maybe he's paying himself an interest spread in excess to replenish that pool of an extra $182 a month. So it could be a combination of things happening in his life. To equate to the number that you had on the list, which is around $4,500, that is behavior based implementation. Does that mean that he'll have less money available? No, it's the exact opposite. He'll have more money available long term. And he's also being more intentional about his spending habits, which means money isn't disappearing in his life to frivolous things because he's got a committed payment. So multiple things are taking place here. These are not things that you find on a spreadsheet. These are all behavioral based elements. The spreadsheet's just proving what the Impact of that behavior is.

That is precisely correct. Because what you're seeing here, Rich, to add to your points, which are excellent points, that this is just showing what happens when the insurance company is administering the money that it's receiving. That's all that this is showing. So this is not showing you the impact of John's actual behavior. John's behavior is going to create an even better financial outcome. This is just showing paying the total premium, shifting to paying the minimum required premium. We're not showing the loan activity here. I want the viewer to know the outcome in total cash value and total death benefit is only that much better when you take into account the borrowing and repayment of extra interest, which is not really extra interest, it's more premium. This is just the minimum required premium. To your point, If I go to any year, if I go to the 10th year, and John says, Look, I've got 140,000 of total cash value. I only needed 75 to buy the car. We've got extra cash value that we can borrow against to pay off some debt, to take the family on holiday, to consolidate some debt perhaps. Yeah.

And he took 50 grand out. And they paid off their RV and they paid off a credit card and they paid off, you know, a college loan.

Right.

One of the kids, and they took all those payments that were going somewhere else and they redirected the flow of all that energy back to this, this machine called an insurance policy.

And this is just one policy. So John and his family, they have a system of policies. His wife is insured, his kids are insured. So now they have a family banking system, they have a money pool. And from that place they can set about achieving all their financial objectives. Whereas Robert keeps sitting down with John every five years going, what is it that you're doing again?

Insurance? Infinity?

I don't know.

I don't know about that. That seems a little bit finicky.

Like what? What are you talking about?

And I put, I put my money in the market.

So you know what John said? He said, bob, I need you to add this book to your wealth building library. It'll take you less than an afternoon to get it. And Bob purchased it by using the link that's in this description. Bob's got the book now and we courier the book, we don't mail it. Things get lost in the mail. So here's what we need you to do. We need you to get your hands on this book, read it, and then create a one to one conversation, a personalized conversation with the Right person on our team. Don't bring any money to that conversation. So don't come along with any of this stuff. Nobody's going to ask you for any. This is an opportunity to have a great conversation around the possibilities that this concept will open up for you, for your family, for your business, to get your clarifying questions answered, to explore your insights, what you're thinking about, your ideas, to implement the concept. And you'll only ever talk to someone on our team who implements this concept in his or her own life. You will never have a discussion with anyone on our team who's not practicing this process personally in his or her own life. Isn't that good?

And make sure when you show up, if you show up to that meeting and you say, what's this book about? And that indicates that you didn't read the book, you're going to find a lot of dead silence on the other end of that phone pretty quickly. And that's the sound of the phone being hung up on you. So, like, take the initiative and do what you're supposed to do and read the dang book. Like, it's really not that complicated. It's 92 pages. You only actually have to read about 54 of them if you do it the right way and get yourself familiar with what's going on. So that when you're on that conversation, both the individual you're speaking with on our team and you are on a similar wavelength, you can ask questions that are relevant, that make sense, and you can get real answers. Otherwise, you're just kind of wasting your own time. So we'd encourage you not to do that. Now, Jay, one last thing before we end this. I bring that up one more time. I just want to isolate something here that our viewers may not have seen. And let's just look at year five there. So in this example, again, this is the example where we funded four years, we put the maximum allowed in. Now we've made a decision that we're going to pay the minimum in our circumstance. That could be because we're paying ourselves extra payments from the car, and we're being a good steward of our money. But in the example, we're putting in, in premium, $4,585, but the increase in that same year is $8,284. So why on earth, if just you're, you're a rational human being watching this video, how many days, how many, how many times would you want to put $4585 in and make sure that you have a guaranteed output of $8,284.

And the next year that you do it, you know it's going to be better. And the next year you do it, you know it's going to be better. And the next year you do it, you know it's going to be better. Why on earth would you stop putting money in? That would be irrational. So that's why we recommend much like Nelson Nash says in his book, once you get a copy on page 85 happens to be my favorite page. Point number two, Nelson says if you knew at passive income time you would be getting back every single dollar that you put into a system potentially tax free, would you ever object to putting any more in it? Well, logically you wouldn't do that. And that's exactly the power of a system like this. When it's implemented correctly with the right mindset and the right behavior. Take out the right mindset and take out the right behavior and you could screw it all up. So our goal is to coach you so that doesn't happen. So you just need to be working with the right person on our team to make sure that's a reality.

That is such a good point. And Rich, when you went through that calculation of the annual increase, so when you looked at from year four to year five and you tabulated that the annual increase in cash value was greater than the minimum premium that was paid, that's not a result of the fact that he paid the minimum required premium in that fifth year. That's a result of all the financial energy that's built up in the policy up to that point. Because the total cash value is contractually guaranteed to match the total death benefit. In this case, John, being that he's a life insured to age 100, he's a resident of Canada in this example, if this were an American, it would be age 121. But the dynamic, the, the contractual guarantee of daily cash value accumulation is no different. It doesn't recognize any borders. It's going to keep rising every single day. It can't go backward. So here's something that John considered. We'll leave our viewers with this.

He considered that if he could contribute almost unlimited sums, if he knew which he did, that he was paying no tax on the daily buildup, no tax on the death benefit proceeds, no tax on the annual dividends, which once declared are contractually guaranteed to be re to be paid. They can't lose value, they can't be repossessed. He has ready access capital on demand on his terms. He's protecting his livelihood, his investment portfolios, his real estate portfolio. He's protecting all of those things that he worked so hard for from being decimated at the highest levels of taxation. And he gets to control how he finances all the things that he needs throughout the course of his lifetime. Logically, he asked two questions. How much of my money do I not want residing there? And how long can I pay the premium for? Not how soon can I stop? Because, Rich, you just identified it. His policy gets to the point, as every policy that we design does, where the annual increase in cash value far exceeds the minimum premium paid. So logically, when would you ever stop directing capital into an entity where that outcome is occurring and it can't go backward? So, given that you're on YouTube, you just saw another video pop up. That's our invitation to you to continue your journey of learning. Watch that next video. Embrace and receive new knowledge and new growth.

But follow those three steps that we implore you to do. Get your hands on a copy of the book titled Becoming youg Own Banker. Make sure you write down your insights, your clarifying questions, and create a one to one conversation with the right person on our team. You'll be glad you did, Rich. This was a lot of fun. We're practicing banking and I think it just gets to be a point where when I think about a loan, when I borrow money for a vehicle, I was going to have to pay that debt somehow.

Anyhow.

I haven't changed. I was still going to save money or pay money for that vehicle. When our children are old enough to own the contracts, these insurance contracts that we purchased on their lives, our family attorney is already preempted.