Breaking Free from Financial Limitations

That's all a policy loan repayment is. You're just replace your pool.

I think we get caught up on the term loan and then we get lost in that term. And we think, oh, it's such a bad thing because of what we are used to when we think about the term loan. But it's not a loan if you change your perspective on it. You're literally just accessing your pool of money and it just so happens that you're taking out a loan against it.

Rethink your thinking, Canada.

That's right.

Loan is a problem because you're not used to being the banker and you're not used to hearing loan. You go, oh, I got to make a payment and send money away from me. Well, when you become the banker, when you send the money back to your system, you're going to send the money somewhere anyway. You may as well send it to your own system.

Exactly.

This is so ridiculously simple, it's crazy. Have you been feeling the pinch lately? Have you seen the price of eggs, man? The costs just keep on going up. The taxes aren't going anywhere ultimately. What about interest rates? 2. See, there's a problem that every Canadian is facing and they don't even recognize that there's a problem. But there's also a solution. But you know, solutions don't matter unless you clearly understand the problem. So my colleague Taran and I are going to dive deep into the problem today, help you better understand the problem, and we're going to give you some resources that will help you implement the solution. Stick around to the end. You're not going to want to miss this. You've been seeing a lot of people lately, right? We've been talking to people about this process called becoming your own banker, the infinite banking concept. And if you want to implement the process of becoming your own banker, one of the things we drill down on with our clients is what we refer to as the problem. Have clients or prospective clients been coming to you at all lately describing the problem to you? Maybe not even knowing it. What type of conversations are you hearing from people lately?

The type of conversations that I begin having my client. They seem to be more on the side of the tool. Oh, how do I get started? How does the numbers work? What's the rate like? How much cash value can I get after these many years? And I gotta slow them down. Hey, let's slow down a bit. We're talking about right now is the tool. But before we dive into the tool, we need to understand the process and to Understand the process. We need to understand the problem. I asked them, what is the problem? And. And most of the time they're not able to properly give me a good constructive answer. I end up having a conversation with them about the problem. So I'm excited to get into that.

Totally hear what you're saying, because everyone's excited about the solution. Why do I want to become my own banker? There's the why, the purpose, obviously, but right now I'm just talking about the why. Well, why is it important? Why would I want to do it? Well, why is because there is a problem. And so let's think about this for a second. Canada, you earn an income. So who's doing the work? You're doing the work. Who is getting all of your money, first of all, before you even see the money? Generally speaking, if you're a T4 Income employee, there's payroll deductions. So you got taxes, you got cpp, you got ei. You might have group benefits, you might have some kind of employer contribution matching program. That sounds wonderful. So you have on paper this income. And he goes, oh, yeah, man, I earn 100,000 bucks a year. Life is good. But what are you actually putting in your pocket, Canada? You're maybe 60,000.

That doesn't sound like pay yourself first. It sounds like let's pay everyone else first and then you get the rest.

Yeah. So part of the problem is a lack of control over where your money's actually going and how that money's being managed. Who has control over the cash? So you're doing all the work and right out of the gate, everyone else is getting all the money. Every dollar that we earn, obviously we need to use it to do things. And. But before we even use it, it has to get deposited. Right. Capital has to reside somewhere and where is residing for people?

Well, generally it's in a bank that we do not own. It's owned by someone else and we just happen to have an account with them. That's generally, for most people, where our money resides.

What do our coaches always tell us to run? What do our mentors tell us? Everything begins with the way that we think. 100%. So, Canada, you've probably heard this before. A person would often rather die than think. Now I'm going to ask you to do something that might be a little painful for you. Okay, let's just slow down. Instant gratification. Instant coffee, Instant messaging. Instant, instant, instant. You have so many different thoughts going on in your head. So many things going on. We barely even have Time to think. I want you just to slow down and actually think about this for a second. Picture in your mind's eye every single dollar, the net income that you've earned up to this point in your lifetime. Think about all of the money that you earned and think about all of the capital, all of the money that the money you earned could have earned. Think about all that money and what it could have grown into. Every dollar that you earn. Tehran. It has energy, right? It has growth.

Absolutely.

Who is harnessing the energy of the growth potential that these hard working Canadians are earning? Who?

Well, it's not the hard working Canadian, it's the person that receives that income or that money. They are the ones benefiting from it. In our example, the bank or whoever else is getting that money, whether that's from the groceries you buy, the cars that you buy, the houses that you buy. Whoever is on the other end of that transaction is earning the money.

The capital is being deposited. Even to your point, even if I go to the grocery store and I buy groceries or I go and buy a piece of real estate and the realtor gets the commission or the owner of the grocery store gets the money. Well, there's only one banking system, right? That realtor and the grocery store owner are still going to take that capital and they're going to flow it right back to the banking system. We are unknowingly and unwillingly capitalizing someone else's bank. We are literally flowing all of the capital that we work hard for and we're flowing it to someone else's bank. And we unknowingly and unwillingly give them permission to do whatever they see fit with that money. Now of course there's rules that they have to follow and all that kind of stuff, but they have the capital and they get. Are they putting that money to work, Toronto, or is it just sitting there collecting dust?

You bet your bottom dollar they are.

In fact, the bank actually has a responsibility to put that money to work, to grow profit because they have owners, they have shareholders.

Shareholders.

So I'm doing all the work, Canada, you're doing all the work. You're sending all of the money to the bank. The bank is then putting that money to work to grow profit, generally speaking, to run like how much of that.

Profit are they sharing with, with you, the depositor?.00005%.

Right. Let's say you get 1%. The bank lends it out at 5% or a million percent. At this point right now, the interest rates are going up, but the Banks lend it, let's say 4 or 5%, they pay you 1%. People think they get the spread, they're getting 4%. Well, some of the videos here will help expand on. The banks are making a heck of a lot more than that because guess what, it's not even their money that they're lending. So if they're using somebody else's money that and they're making interest off that, they're making a heck of a lot more than that. And we're not trying to make the bank sound real evil or any. We're just trying to isolate the fact that there is a problem. And the problem is called banking. Because the money is always flowing away and that money's being put to work and it's not being put to work for you. And then you have to keep on going back to work to try and make more money so you can take advantage of opportunities or just live your life. Right. That's the problem. Money is always flowing away and you don't have control. Let's expand on the problem a little bit. Taran, I'm sure you probably have a story or two that you could share about this.

One example that I can think about was a few years ago I had decided to propose to my now wife and Congratulations.

Congratulations. Thank you.

Thank you very much. And at that time I planned this this proposal. And the only thought that crossed my mind is account for how much cash I need to fund that proposal. And it was around that time when I discovered this process. And so I was faced with this dilemma. I could use my cash to fund this proposal. But then after learning about this concept, I realized that if I funded it with my cash, my cash is gone forever. Because I understood the problem when I discovered process. And then upon understanding that I decided to get started with this right away as soon as I could got my first policy. And then what I did was I was able to use my system and the money within my own system. So I controlled my capital first. And of course it wasn't the entire amount that I was going to put towards a proposal, but I controlled a portion of it and then I borrowed against my policy, my cash values and then I use that along with some cash to then fund this proposal that I had planned. I was able to control some of my capital capital before it left me.

You're able to put that capital to work in a system that's right, you own and you control at a company that you co own, which is ideally speaking we want to use a mutually owned insurance company with the right type of whole life tool. Which is why we tell you, hey, make sure you work with an authorized practitioner. Make sure you go to watchibc.com that's watchibc.com so you can get access to a 90 minute webinar that will help you start to really expand on your understanding of how this process works. But the whole point is the cash that you use to finance the proposal, that cash left and what went with it is the growth opportunity, the opportunity to grow that money. Whereas the other cash, you capitalized your policy system and now that cash is still growing and earning for you today, even though you used it to finance the proposal, Right?

That's right. So I never lost control of the capital and it kept growing for me and now I have access to even more capital that I can use for whatever it is that I want to use.

A lot of times people start hearing about this whole idea of borrowing from their, the value and they go, oh, well, oh well, now I got to pay it back. Well, hold on a second. Isn't money always flowing?

Absolutely. Money's always in motion.

It's always in motion. You're earning income, you use the money, then you earn more and it replaces what you used. You build up savings, you spend it to run. When you spend your savings, don't typically most people start to make a payment. It's a payment. You're paying it back to your savings to build it back up so you can go on your next trip or finance your next thing or whatever. You replenish your savings. That's all a policy loan repayment is. You're just replenishing your pool. So you go back and use the money and what grows, Right.

I think we get caught up on the term loan and then we get lost in that term and we think, oh, it's such a bad thing because of what we are used to when we think about the term loan. But it's not a loan. If you change your perspective on it. You're literally just accessing your pool of money. And it just so happens that you're taking out a loan against it.

Rethink your thinking. Canada.

That's right.

Is a problem because you're not used to being the banker. And that's right, hearing loan, you go, oh, I got to make a payment and send money away from me. Well, when you become the banker, when you send the money back to your system, you're going to send the money somewhere anyway. You may as well send it to your own system.

Exactly.

This is so ridiculously simple, it's crazy. So imagine we had $10,000 built up in some sort of a tool or some kind of a savings account, some sort of warehouse. Let's be really conservative with a savings rate or a rate of return. If it was in some kind of a gia, like a guaranteed investment account, or maybe a G, or some kind of conservative investment, is it fair to say that we might be able to achieve 3%?

At least 3?

Yeah, sure. Yeah. Now, Taran, you're probably going to far outlive this number. Because I know you're a life hacker. I know you're a healthy guy. I know you make that a priority, which is a good thing. The longer you're around, the more wealthy you're going to become. Turan, congratulations. Because it's engineered outcome, it's indestructible.

That's right.

Process. But Statistics Canada says that you're going to be around for probably another 56 years at least. Let's just imagine Canada, okay? We've got $10,000 in this imaginary savings account. It's earning 3% compounded, uninterrupted, for the rest of your lifetime, for the next 56 years. So keep in mind, we're thinking long range here. We're thinking about our future for our own life and our own enjoyment. But I'm also thinking about my kids and my unborn grandkids and my great grandkids. Decisions that Taran and I make today with our policy system are going to dramatically impact the opportunities and the quality of life of the generations that come after us. So you can have that same kind of impact today. So what does this mean? So when. When we make a $10,000 decision today and we spend $10,000 of our own cash, See, we're always seeing the interest that we might pay to somebody else. We go, I don't like that. What we rarely think about is the interest that we otherwise could have earned on our own capital when we spend cash. Let that sink in for a second. The interest that we otherwise could have earned on our own capital when we spend cash if it was put to work in a system that allows your cash to grow every single day uninterrupted. So we make this $10,000 decision today. We're actually making closer, potentially, to a $53,000 decision. We're stealing from our future self. And we're leaving over $43,000 of potential interest on the table. Just by changing the process, changing the way that you think you all of a sudden can put More capital to work and take advantage of that uninterrupted growth. Have you seen the price of eggs? Have you gone to the grocery store? Are our prices likely to run to come down right in the long run?

Probably keep going up.

Yeah. Hopefully they don't go up at the rate that they're right now, but they're.

Probably stabilized a little bit.

And then it'll, over time, it'll likely keep going up. So the cost of living is going to keep rising. Now, right now, interest rates are pretty high and we deal with a lot of real estate investors, don't we? What are those investors telling you lately about their amazing cash flow from all their awesome opportunities, all the hits that.

They'Re taking with the every single rate hike that's been happening. And for those who have variable mortgages, you know the feeling. It's not fun.

See Canada, it's because you're not controlling the banking function. We're all familiar with this process called banking, but someone else is the banker and someone else is dictating the terms. So I have the same issue when I'm talking to folks. Is that their cash flow, hey, it was 2000 last month. Guess what? I'm barely breaking even today. Not last month, but six months ago. I'm barely breaking even today because my home equity line of credit or my unsecured line of credit or my variable rate mortgage is chewing into all my cash flow. And unfortunately, this is what happened to one of these mid-50s couples that I spoke to just last week. They had about four or $500 a month that they were going to get started on the process of becoming your own banker. But because of the cost of food alone, the living expenses, and because of some interest rates on some loans that they had lines of credit, that cash flow has been eaten up. So now they're going to work to find ways that they can, you know, change things around and free up some cash flow to get started. And that's the key, is you got to get started because this is going to happen overnight. The time's going to go by anyway. Now, speaking of time, Taran, this is an amazing story and I'm going to paraphrase it just in the interest of time here, but I got the opportunity to connect with a couple earlier this week. Okay. They started implementing the process of becoming your own banker. Or at least they bought a properly designed dividend paying participating whole life insurance contracts with Mutual Insurance Company about 10 years ago. And they were actually following Nelson Nash's golden rules. They're not afraid to capitalize. They were actually putting a fairly decent amount of capital into their policy system. And so the problem was is they worked with an advisor who was an authorized practitioner through the Nelson Nash Institute. He actually did a very good job for this family, which is great. But he took advantage of some other opportunity. He got out of the business. He's. He sold his book of business. So they. Then what happens in that case, a lot of times is unfortunately, clients often become what's called an orphan client, where they don't have an advisor. But these clients do have an advisor. But he's just more like an insurance guy. And there's nothing wrong with that. He's just not trained. They know more about IBC than he does. So what they were in and out the last 10 years, like, oh, we should be putting this kind of money into these policies. Like, is this really a good thing? And they're not getting the guidance. Right. But they stuck with it. And then guess what? They got lucky enough to hear this company called Ascended Financial, and they started to consume our content for the last while. And they're like, holy smokes. Like, this is what we need, authorized practitioners who can coach us, who can actually put together a program for us to follow, to start gaining momentum on our system and in our life. So these are pretty well to do people. They earn a really good income, but they've been capitalizing policies for 10 years. And I get together with the husband and wife and God bless her, they were so vulnerable. The wife was just sharing with me and she was really upset. She goes, like, vern, we don't know what to do. Like our line of credit balance, they have a blended mortgage, where they have a mortgage and a line of credit. They pay down the mortgage, their line of credit increases. But what they were doing is, oh, let's take advantage of some of that money and using it to pay off other debts and different things. Well, the interest rate was really low. It was no big deal. It was costing them 6, 700 bucks a month. For them, it was not a big deal. Well, guess what? Servicing that line of credit now, servicing that interest has now tripled. She is like, anxious, like, we're never going to get out of debt. We don't know what to do. We just need some help. And I said, hey, would you mind if we took a look at your program? And they said, sure. So what they did was they shared their screen with me. They actually looked in their client portal, their client access portal, where they could see their policy loan balances and they could see their policy loan availabilities. And by the time and he told me that he had a bonus coming up and he said, oh, I'm going to take my bonus, I'm going to pay off some of the line of credit. So it's going to relieve a little pressure. And I said, why don't we just hang on for a moment. Why don't we look at your system? So guess what? One the sixth golden rule, right? Create capacity for windfalls. So they have about $100,000 combined of policy loans outstanding and his bonus is going to be just around 100,000. So you could take the 100,000, you could give it away and give it to someone else's bank and then you would reduce the debt and reduce your interest and that's great. Or you can take that growth potential and first flow it back to the company that you co own so that company can put that money to work to create more future dividends that they're going to share with you. We can backfill the policy. Now if we add up your policy loan, which when you repay that, all of that becomes available for you to use again. Plus what grew. I helped them discover that they had over $320,000 of access to capital in their own policy system, which is basically enough to wipe out the entire line of credit that they have to service so that they can recapture close to $2,000 per month within their policy system. And let me tell you, they thought I was a superhero. I'm not a superhero. The work was already done. All I did was just, just give them some guidance, help them rethink their thinking and then be able to put the plan in place. And they're super excited to do that and they're going to go ahead and expand their program. So I got goosebumps, man, that like we get to do this.

Yeah. And that's a great example of the importance of the behavior of the person putting in the premium. They did that for 10 years. Even though during those 10 years they weren't fully confident about the power process, but they stuck to it and look what happened. That's awesome.

That's exactly it. So the advice is, first of all, binge our content. Okay? Go and binge our content. Go to watchibc.com so you can learn more about the process of becoming your own bank of the infinite banking concept. Make sure you get yourself a copy of this book. Like these are actions that you can take. The first thing, it starts with how you think the next thing is education. And then you got to take action. Get in touch with Taran or one of our amazing teammates. We're more than happy to connect with you and coach you to implement this process so that you can start creating a tailwind on your finances and make a difference for yourself and every generation that comes after you.