DO THIS And Never Worry About Money AGAIN (Canada)

So let's improve the outcome by not focusing on what you are going to buy in life going forward but instead let's focus on how are you going to go about buying it going forward.

So let's meet Corey. So Corey, he's an investor, he's a full time investor, he's age 38. And Corey also gets really excited to earn a rate of return over 20%. So whenever he has an objective to invest money, he's always looking to get the maximum rate of return. In his case he gets really excited at the rate of return is over 20%. So when he met with me, I used 20% as example to demonstrate this teaching point which is exactly what I'm going to be sharing with everybody today. Now Corey, when he came to the session, just like how you guys are attending the session today and he read Nelson's book, he said to me and he was very honest, he's like sharply I understand the long term benefits of ibc. I love it and I want to do it. Can you just help me in understand? Because I'm really struggling with understanding the short term benefits because I see that I don't have access to dollar for dollar in in the first few years because I have to capitalize on banking system and build it to a point where you can do all that and understand all that. I understand there's no such thing as instant gratification. Some things which are worth considering are going to take time but help me understand that. So I used his own example which is the objective for Corey is to do what? Invest money. So let's meet Corey's objective now before we dive into it we have to understand that the problem is not the problem. The problem is how we think about the problem. The problem is not 20% rate of return. The problem is how do we go about achieving the 20% rate of return. What can we change in terms of process? So let's improve the outcome by not focusing on what you are going to buy in life going forward but instead let's focus on how are you going to go about buying it going forward. Everything that we do in life financially is a measure against how someone else is doing. Everything is comparable, right? If you're doing good compared to what, if you're not doing good compared to what, everything is comparable. So is the process of banking is comparable.

Let us see how we can get Corey a better rate of return by changing his process of investing. We are not going to change his objective, we are just going to change his process to accomplish his Objective. And what is his objective? His objective is to continue buying assets that produce 20% rate of return. Now the methods that Corey has been using presently.

And you may be doing this presently, either Corey uses his own cash, which is the method one, so if he finds something which is worth Investing to earn 20%, he may pile up cash in someone else's bank and he wants to use that cash to accomplish the objective. Or the other way is because Corey also has a principal residence and he also has access to money through HELOC, which is OPM, someone else's bank at 3%. So these are the two methods that he's been using. So let's see what he's doing presently. And we're going to compare that with what we are going to be doing via the process of becoming a banker. Once you compare things, then it'll connect with you. So method one and basic simple math, guys, this is simple arithmetic. So using his own cash, so if he takes his 20k of his own money, of his own cash, and he invests into something that's going to produce 20% rate of return over the year, he is going to earn $4,000 in his investment. Pretty straightforward. Method two, he gets to borrow $20,000 as a line of credit from the bank. So he's now using opm, other people's money, in this case line of credit. Now he uses bank's money to invest into 20%. He still earns $4,000, but he has to pay the bank back the interest, the cost of borrowing, which is at 3%, 600 bucks. So his net gain in the transaction is $3,400. So 4,000 minus 600. Now whether he selects method one, which is using his own cash, or selects method two, which is OPM, someone else's money, let's agree that he did pretty good, right? Now let's make it even better for him by changing his process. Again, we're not going to change the objective, we're not going to change his cash flow. We are going to change his process.

By changing one thing, which is the process. So let's dive into this. Let's see how IBCE can make things better for him. IBC, which stands for Infinite Banking. Now he takes his $20,000 of his own money and he capitalizes his banking System. Now that $20,000 goes as premium. Now immediately at his agent where the policy is going to be designed based on his objective, his starting Death benefit is $400,000. Now let's compare immediately if he was to take his $20,000 by the investment. He accomplished the objective, but he has no death benefit. In case something happens to him, the family will get his $20,000 back and the investment return, which is $4,000. But if he takes his $20,000 and buys a policy immediately, he's creating protection from his family, which is $400,000. Tax rate, starting death benefit. And that death benefit is going to increase every year going forward. Now, immediately when he takes his $20,000, he starts a policy right away, his cash values are going to be $10,333. So if I take $20,000 and I put that into his policy today on 30th day, within a month, that's what his cash values are going to be in his policy. Now, in addition to that cash access, the cash value, he is also going to have a daily cash growth in the policy because of insurance companies contractual guarantee that by age 100, his cash values must match his death benefit. So every single day as Corey ages, as he gets one day closer to age 100, his cash and the policy keeps increasing. $8 per day, which is just in the first year. Every year going forward, that daily cash growth will become better. I'm just talking about the first year. Now the loan available. So if his cash values in the policy are $10,333, immediately he can borrow $9,300 as a loan from insurance company. So this $9,300 is 90% of his cash value. So immediately he can borrow money right away, $9,300. Now, this particular insurance company that he has the policy with, their interest rate on policy loan is 6.2% annual interest. Now what he's going to do is, like I said, he's going to change his process. So he took his money, he started a policy. Now he's going to borrow insurance company's money to go by the investment. And let's see if he comes out ahead using this process versus the first two methods. So he uses a policy loan of $9,300 to invest at 20%. Now, when you initiate a policy loan, that money comes from the insurance company. It's not your money, it's insurance company's money. Your money in the policy continues to grow. In his case, he never interrupted the growth of his money. It kept growing $8 per day for that year. A loan on his policy never interrupted his growth. So he's using insurance company's money now to invest at 20%. So $9,300 at 20% over one year, he is going to make 1860 on that investment by using insurance company's money. Now he has to pay the interest to the insurance company at 6.2%. So the interest accumulated over that year is $576. So his net profit from the investment by using insurance company's money is 1,860 minus 576. So his total gain in the investment is 1,284. If you look at the first option which is using his cash, he made 4,000. If you look at the second option which is using HELOC, he made 3,400. Using IBC to buy the investment, he made 12.84. And now you guys must be thinking cerebral. I thought you mentioned this is going to be better for him. But seems like he's behind using his cash or using heloc. He's way behind. Because our mind focuses on numbers, it doesn't focus on the process. Now when he took that loan from the insurance company to go buy the investment, how much of his own cash stopped growing in the policy? So while he used insurance companies money to accomplish the objective of buying the investment, he kept growing his own money in the policy. Let's add that to his overall access to capital. At the end of the year, his access to capital is not just 1284 that he made in the investment but but also the growth that he had in the policy. So let's compare. So like I said, you mentioned, IBC would be better. How is it better? Show us. So here's this snapshot. If he took his cash 20k at 20%, he made $4000. Whose money did he use? It's his money. Once he uses that cash, the money is gone. All he has is the investment. And how do you access money from the investment?

By withdrawing it. And if you withdraw money from the investment, investment stops growing. The other way is to use heloc. So now he's using someone else's money, in this case bank's money 20 ka to go by the investment he still earned 20%. But after paying the interest to the bank he earned 36. His net profit is $3,600. But this is bank's money. So the final outcome if he uses his cash is 4,000. If he uses HELOC which is $3,600. Now the option three, which is IBC, he took $20,000 and he started a policy. And using policy loan he made 1284. But in addition to that, his own money in the policy kept growing at $8 per day. So as he used insurance company's money to make 1284 in the investment, he also ended up making 2,920 in daily growth in his policy over the year because the policy loan did not interrupt the growth of his own money. So in one year using his 20k, he made 1284 in the investment plus 2920 in the policy. So overall he made 4204 in terms of access to money again. And he is just getting started with policy. As time progresses, his loan access is going to be way more than his premium. So if you compare, now using cash is 4,000, using HELOC it's 3,600. And using policy is 4,204. And this is when Corey, this gentleman, he couldn't believe what he saw because he was too focused on numbers. He forgot about the process. He created a tailwind when he ran numbers or ran his money through his policy because he never interrupted the growth of his money. And that daily growth kept pushing him ahead financially. Now it doesn't even stop here. When he took his cash to go buy the investment to earn $4,000, he'll have to pay tax on all that $4,000 if that investment is non registered. When he uses HELOC to go by the investment, he has to pay tax on $3,600. When he uses his policy alone to buy the investment, he only has to pay tax on 1284, which is the money that he used from the insurance company to buy the investment. That growth is the only portion that he has to pay tax on his own growth of capital. In a policy, he never have to pay any because your money in the policy grows tax free. So if you compare all three options, Corey just did not make more money as compared to option two and option three. But he also ended up paying less taxes. So ask yourself this question. What's wrong with this process? If Cody could do it, so could you. Cody needed a coach and we are here to coach him on this process going forward. So again, you can't get a better return. And I'm speaking to you. This is so fundamentally important to understand. This is what resonated with me when I was first introduced to this process myself. You can't get a better rate of return investing into anything without first controlling its financing function. Create your financial tailwind by implementing becoming your own banker in your life, personally and or corporately. For every transaction that you have the need for use of money, someone has to perform the function called banking for you. And that someone should be you.