Enhance Your Investment RETURNS in Canada

Your consumer brain is fighting you on interest rates and all that other stuff.

What matters is who's in a position of control, who's controlling the banking function in your life as it relates to your needs. If you're abdicating that responsibility to someone else, you're not only abdicating the responsibility, you're abdicating the opportunity. And the opportunity is what's going to produce the most result. So focus on a return on results and it is up to you to generate that return on results.

The gentleman that you see here on the screen, this gentleman is the late R. Nelson Nash, my mentor. I was blessed beyond the definition of good fortune to be mentored by Nelson for so many years. And Nelson wrote the book titled Becoming youg Own Banker. Now, this book is a 92 page read. It takes the better part of an afternoon to get through. And Nelson wrote the book for you. He didn't write it for folks like me, he didn't write it for financial professionals in the financial sector. He wrote it for you. And this book will absolutely change your life as it changed mine and as it's changed the lives of our clients coast to coast. Nelson also authored the book titled Building youg Warehouse of wealth and co authored the book titled the Case for ibc, which is short for Infinite Banking Concepts. Now, sadly, Nelson passed away in March of 2019. But prior to his passing, he was able to view the documentary film that I had commissioned on him, which of course all of you would have received a link to@nelsonnashfilm.com and what you'll find. As we're working through today's material, we're going to be supplying you with so many resources for you to tap into. Because we're all about education first and we understand that people learn differently. Some people prefer to learn via audio, some people prefer to learn like what we're doing today on the Zoom platform. Other people prefer to learn by reading. And for you, it might be a combination of all three. So we're going to give you all the resources you need to tap into your preferred method of learning. Now, what Nelson discovered in the early 1980s when interest rates skyrocketed. So we're experiencing rapid growth in inflation at the moment and we know what Nelson had to endure in the early 1980s when inflation skyrocketed and interest rates peaked at 21.5%, and that is if you were a prime customer. Now, Nelson owed a half a million dollars in mortgage debt because he was a very active real estate investor and people were Saying to him, nelson, just sell the real estate. And he thought to himself, what fool is going to buy these properties from me if they know that they have to go and finance it at such high rates of interest, he didn't realize that he had a solution to the problem right in front of him. It took him.

Quite a bit of time, many sleepless nights, a lot of prayer, to find the answer to the problem. And what he had were dividend paying, participating whole life insurance policies that had accumulated a significant amount of cash value that he could borrow against in order to get rid of the commercial banks. So he referred to them as snakes and dragons. And so he would often say, I need to get rid of those snakes and dragons. I had options. I could have filed an assignment in bankruptcy and walked away from those properties. His joint venture partner actually did that. But Nelson had a life insurance policy on that joint venture partner. So even though it took Nelson 13 years to get rid of the commercial banks, by utilizing and implementing this process of becoming your own banker, which he named the infinite banking concept, he was not only able to get rid of those commercial banks, but but sadly, in some point in the future, that joint venture partner who bailed on Nelson during that very difficult time, that joint venture partner passed away. And that policy paid Nelson a significant windfall of death benefit. So Nelson would say to us, he said, do you think that that death benefit erased some of the financial mistakes that I made, not only in this joint venture arrangement, but in other areas that came up during that period of the 1980s? And the answer was absolutely yes. So he was able to get rid of the banks, take control of the financing function as it related to his investment properties, as it related to his financial needs. He maintained ownership of the life insurance policy on his joint venture partner even though the joint venture relationship terminated. He received a tax free windfall of death benefit proceeds when that joint venture partner passed away many years later. And so you're going to see through real examples how you can become your own banker. The problem that we're trying to solve through the implementation of this process is that isn't it true today for all of you that you're earning income from maybe more than one Source? You've got T4 income, rental income, dividend income, maybe a combination of all the above? And isn't it true today that all of that money is flowing through the books of someone else's bank? I say that again, someone else's bank, that money gets directly deposited onto the books of someone else's bank and Then that money sits there, which we all should know that it doesn't sit there. Banks cannot let money sit still while that money is what you think is there, which isn't really there, it's just an illusion. But while it's there, waiting for you to pay your bills, every single transaction that you facilitate involves transferring money away from you. So all the income flowed onto the books of someone else's bank. And then you began the process immediately of transferring all that money away from you for the groceries, the fuel, the mortgages, the unplanned vacancy, the roof that needs to be fixed, the toilets that need to be repaired, and so on. All that financial energy being transferred away. And where does it all end up? It ends up right back on the books of someone else's bank. So you're doing all the work and everyone else is getting all your money. We need to change that. And this process will help you solve that problem. The process of becoming your own banker. It has nothing to do with addressing the yield of an investment, becoming your own banker, the infinite banking process. This is not a product. The concept itself is not a product. It's just a process. So we're not discussing addressing the yield of an investment. We want to talk about radically improving what you're already doing through your investment activities by changing the process. Changing the process. This is all about how you go about financing the things that you need in life, which can certainly include investment. Now, what's really important for all of us to understand is who the characters are in the financial play. Now, most people don't even know that. Understand that there are characters in the financial play, let alone that there is a financial play. I want you to think about four characters, and if you have a pen and paper, I'd like you to write them down. The first character in the play is the depositor. You are all depositors. You are presently flowing all of your capital through the books of someone else's bank. In order to do that, you have to be a depositor. Secondly is the borrower. Now, the borrower is the most important character in the financial play. To make the whole system of capital flow and make the whole system work, you're all borrowers. Even when you pay cash for things, you're still working with borrowed money. Now, the third character in the financial play is the banker. The banker is the character who determines who gets access to someone else's pile of money, what the criteria is to gain access to that pile of money, and what the terms are for repayment. Now, for most of you. You're not the banker as it relates to your needs financially. Someone else and some other organization is performing that function of banking in your life. The fourth character in the financial play is the character who makes the most money, and that is the bank owner. The bank owner. If you think of who that character is, the bank owner is the stockholder of the commercial bank. The stockholder has an expectation of profit. No other expectation other than profit. Steady, consistent, reliable profit. Now my question. Who does the banker work for? The bank owner. Which character in the financial play? Remember the four characters that I just walked through? We have the depositor, the borrower, the banker, and the bank owner. Which character in the financial play makes the most money? Bank owner. If you recognize that someone must perform the function of banking as it relates to your needs.

You'Ve got options. You can continue to be the depositor and the borrower, or you can become all four characters in the financial play just by changing the process. Now, we know that again, if you think about as real estate investors, we need access to capital. We have to have ready access to capital to take advantage of opportunities that track us down. We want access to capital. And the bankers and the bank owners obviously recognize that want. We want to control that access to capital, which presently for all of you, you don't have total and absolute control over access to capital. Even if you're working with first position lines of credit, home equity lines of credit, et cetera. I want you to remember that whomever has the gold makes the rules. And so the banks can change the rules at any time. Now, we want to profit from that access to capital. So let's become all four characters in the financial play. Now, there are different ways of going about financing the things that you need in life. And you'll recollect what I shared earlier when I said the process of becoming your own banker is not about addressing the yield of an investment. It's all about how you go about financing the things that you need in life. So. So let's look at a few common methods of financing. Well, we have folks who like to pay cash for things. So this would be the individual, Perhaps you know someone, or maybe this is even you, where you store your money. Every deposit on the books of someone else's bank is a way to create and multiply capital for them, not for you. So when you save money on the books of someone else's bank because you like paying cash for things, and then you withdraw that money from the bank to go and purchase whatever it is that you wanted to buy, you achieved your objective of purchasing that thing or investing in that thing. But what you gave up control of is the use of that capital permanently. You can't spend it again, you can't earn interest on it again, not only for your generation, but for every generation that comes after you. The second common method of financing is leasing. This is what we like to refer to as the no purchase payment plan. You're continually making payments, but you're never purchasing anything. So if you think about a vehicle, you know, we've all heard, hey, like if you're in business, it's a great, you know, it's a great move from a tax planning perspective to lease your vehicles. Well, my question for you would be, is the person who purchased the vehicle that you're leasing stupid? Of course not. They understand what the real value is and the real value is in the stream of payments. Now the third most common method is financing. Now you're all acutely familiar with this. If you're, especially if you're involved in real estate investing, when you want to take advantage of an opportunity that has tracked you down, you have to go through lengthy nosy credit applications, you have to deal with the gatekeepers at the bank, you have to go through the toll takers, you have to provide personal guarantees, you have to income qualify, credit qualify. You have to agree to a repayment schedule on their terms, not yours, and so on. The fourth method that we're going to dive deeper into is the infinite banking concept method. Now the one thing that changes for real estate investors is who's become the banker. When you implement this process, this is all about where the money's coming from, which in this case the capital is coming from a life insurance company that you become a co owner of, where the money is flowing back to, which in this case is the life insurance company that you become a co owner of and who that money is being put to work for. I want you to think about this very carefully for a moment. When you borrow money from someone else's bank, regardless of the rate, okay? Hey, I can get access to money at prime plus 25 basis points. Excellent. That's actually really good. It means that you've got great credit, you've demonstrated the ability to repay, you've demonstrated the credit worthiness. Excellent, good for you. Now when you access that money and you're bound by whomever has the gold makes all the rules, every single dollar that you repay is being put to work for which character in the financial play? The bank owner. And so if you're transferring financial energy to someone else's system to does the rate matter? You transferred a little less financial energy away from your own family. Well, which, you know, I asked, I was talking to a real estate investor yesterday. He said geez, I got this opportunity, I can take advantage of it. And my interest expense, like by implementing this process is going to be a couple thousand bucks a year. I said yeah. And he said but I'm going to recapture all the money.

And I said okay, well this is going to be several hundred thousand dollars. So which number is bigger, the principal or the interest?

And he said the principal. I said well which one do you want to recapture? Do you want to recapture the bigger number or the smaller number? He said well ideally I'd like to recapture them both. That's what this process will enable you to do. So you got to remember who the characters are in the financial play. I can't emphasize that enough because that is going to help you develop a deeper understanding of the process. We're going to have to get into an arm wrestling match with your consumer brain because your consumer brain is going to fight you on interest rates. The bankers know something that you don't.

And the bank owners definitely know something that you don't.

Commercial banks are making record setting profits in the lowest interest rate in environment that we've ever been in. It's not about the rate folks, it's about the volume. People are lining up from here to your international airport to borrow money from the commercial banks because the rates are so remarkably low. And the bankers and the bank owners know that that's going to produce a much higher volume of interest in the form of capital. And when that financial energy flows back to the bank, they have to deploy it again to multiply it. So let's change that cycle, let's change the flow. The pattern isn't going to change in terms of, you know, what we're buying, right? We're still going to want to buy real estate. We're going to want to take advantage of opportunity. But we are going to change the process. Now I want you to think about this over the course of your lifetime to date. I want you to think about all the money that leaves your family for things like mortgages, investments, vehicles, property, weddings, taxes, tuition, business loans, insurance, personal expenses, business expenses, recreational vehicles, vacations, sports, hobbies, and so much more. Add up all that money you've earned and spent up to this point in your life, could you write me a check for that amount of money right now? Of course the answer is no, because you've transferred all the energy away, you're doing all the work. Everyone else is getting all your money. How does that make you feel? Let's ask Jim Carrey.

He doesn't look very happy, does he? Nice guy, but doesn't look very happy. In this pick, here's the truth. Every decision that you make with the use of money is a financing decision. You're going to hear me say, you're going to hear Sharblow say, you're going to hear Vern say today that you either pay up or you give up. So you either pay interest to access someone else's money, or you permanently give up the interest that your own cash could have otherwise earned. And it's not just for your generation, but for every future generation that comes after you. Now, there are two types of individuals that I want to highlight before we start diving into case studies. The first individual is the debtor. Now, what you can see here, I'll just annotate as we go. What you can see here is that the debtor starts at zero. The debtor goes to someone else's bank and accesses capital. So in this case, a loan. And that loan has a repayment schedule. So the debtor starts off in a negative position. Now, every payment that the debtor is making to work his way down to a zero balance is a deposit into someone else's bank, and your debt is someone else's stream of passive income.

And so when the debtor gets back to zero and the debtor needs to go and purchase the next car, the next investment property and so on, the debtor has to repeat this cycle all over again, all involving a permanent transfer of capital away from the debtor. Now, let's contrast that with the saver. The saver also starts at zero. The saver needs to pile up money on the books of someone else's bank. So every deposit.

Every single deposit becomes someone else's passive income. The saver gets to the point where he or she has enough money piled up on the books of someone else's bank to go and buy that same thing. And the saver ends up right back at zero. So what's the difference between the debtor and the saver? They both ended up at the same place. They're both working with borrowed money.

The debtor is paying interest to access someone else's pile of money. And once the saver withdraws all that capital from the savings account, the saver permanently gives up the opportunity to earn interest on all that money for the rest of his or her life and every generation that comes after.

Just talking about that is frustrating. Just talking about it is frustrating. And the debtor sees the interest, right, because it's part of their payment. The debtor knows, okay, from every payment that I'm making, a portion of that payment is principal, a portion of that payment is interest. The saver doesn't see the interest. They're giving up the opportunity to earn. That's why I want you to develop the ability to rethink your thinking. It's one thing to say it, hey, rethink your thinking. It's another thing to actually develop the ability to do that. You're going to have to rethink your thinking because your consumer brain is going to fight you. And when you understand, after reviewing these examples today.

You will know that you can become your own banker. You will know that you can implement this process. You will know exactly what you can do as it relates to your own personal financial situation to introduce this process which is going to create significant advantage for you financially in all areas of your life. The question is, is there a better way? The answer is absolutely yes. And the solution is to become your own banker. Now, the fundamental truth here is that your money must reside somewhere. So we're going to go through a quick thought experiment and then we're going to go right into case studies. What I want all of you to do is I want you to think about creating the perfect investment. And I want you to just envision, if you just come along with me here, I want you to envision just a clean slate and you can develop the perfect investment. It has to be an asset that has absolutely no drawbacks. And I would like to know.

What does that perfect investment look like to you? What attributes does that perfect investment have? Now, some of the most frequent responses that we receive are things like high rate of return or conservative, no taxes, things of that nature. Now, if you're to take a look at all of these attributes, what I'd like you to consider is, is for your own various assets that you have today. Simply identify which of the features from this list that those assets are doing well on and which of the features they're failing to satisfy. Look at your own personal balance sheet and say, okay, of all the assets that I've got, which features from this list are those assets doing really well on and which of the features are they failing to satisfy? The surprise is that the list of attributes that I just shared accurately, most accurately describes a dividend paying, participating, whole life insurance Contract. Let's break this down real quick. Participating means that you become a part owner of the life insurance company and you participate in the profits generated from every line of business that the insurance company operates in. Now, you may be familiar with a life insurance company and that they provide a wide variety of products to the marketplace. You've got whole life insurance, you've got participating whole life insurance, which is the tool that we use to implement the process of becoming your own banker. You've got term life, critical illness, disability group employment benefits, savings and retirement programs, to name a few. All of those products are engineered to be profitable and you get to be a co owner of that profitable company and you participate in the form of annual dividends. And those dividends, when they're chunked right back into the policy, they trigger zero tax. So another added advantage in addition to that dividend paying means that once a year the board of directors of the insurance company get together and they say, hey, how do we do operating the business this year? Well, we generated a surplus yet again. The carriers that we work with have been generating a profitable surplus every single year since inception, going back to 1847.

Now, when a dividend is declared once a year, it is contractually guaranteed to be paid. It cannot be repossessed and it cannot lose value. The performance of the contract, the guarantees that the insurance company is legally bound to fulfill, those guarantees are not tied to the stock market. They're not tied to real estate cycles, they're not tied to the economy, they're not tied to the pandemic, and so on. That is why year after year, decade after decade, these life carriers remain the most financially solvent institutions on the planet. Now, in addition, whole life means that you're insured for your whole Life. To age 100, the total cash value of the policy must equal the total death benefit by age 100 of the life that is insured. That means that every single day that you're aging closer to 100, cash value is rising and accumulating inside of that contract. And the policy cannot lose value. It cannot go backward. And so when the stock market.

Falls off a cliff, total cash value rises. When real estate increases in value, total cash value rises. When the economy recedes, cash value rises. When a global pandemic literally puts a stranglehold on the economy, cash value rises. The policy cannot go backward now. It begins accumulating on day one, and it is contractually guaranteed to grow every single day thereafter. Cannot go down. You've got easy access to and control over a growing pool of financial value. So as this cash value is accumulating in your policy or, or your system of policies, you can borrow against that accumulation. So you have ready access capital. And when you borrow against that accumulation, it's on your terms. So a policy loan from the life insurance company is an unstructured loan. The policy owner controls the repayment schedule of the loan, not the life insurance company. So I want you to think about all four characters in the financial play. Because when you put a policy in place, you have to pay premium. So you're a depositor. When you need access to capital to take advantage of opportunities like real estate, then you are the borrower who sets the repayment schedule of a loan and who determines access. It's the policy owner. So you're the banker. And when the life insurance company.

Creates a surplus and distributes that in the form of dividends, you, you are the bank owner. So you become all four characters in the financial play. So you're the one that's going to accumulate indestructible wealth and it provides a growing death benefit as well, which is paid to your named beneficiaries income tax free. So I want to encourage all of you to become wealth creators by implementing this process. This green line is representing the daily accumulation of cash value. The red line is the policy owner accessing policy loans and repaying those policy loans on your terms without ever interrupting the daily accumulation of cash value. That is an advantage that I would encourage you to really process. Because when you compare doing that to what everyone else is doing financially, you're going to be in a position of advantage because you're in a position of total control. You have access to money without interrupting any of the growth of your own accumulation of capital. Let's take a moment and let's dive into example number one. I want you to meet Ted. And ted is a 46 year old professional. And what Ted was doing is he was setting aside $40,000 per year. So he was saving money and he was saving it on the books of someone else's bank. And what's interesting, once Ted became aware of everything that you just heard up to this point, Ted recognized that, okay, he could still achieve his objective, which I'm about to share with you, but he understood that he could achieve it just by changing the process. And so what we're going to do is walk through this example and I'll also do a deeper dive into Ted's policy to show you exactly what's going on. So one of his wealth accumulation objectives is Rental real estate. It's not his only wealth accumulation objective. It's one of them. Now, Ted can continue storing his money on the books of someone else's bank, or Ted can create his own banking system just like the one he's already familiar with. So let's help Ted decide which option is more preferable for him. Now, after two years of savings. So what Ted did is he took that $40,000, that financial energy, and he redirected it into a dividend paying, participating whole life insurance contract. So he didn't change his cash flow, he just changed the process of where that financial energy was flowing to. And he recognized that the moment he put that policy in place, he became a co owner of the life insurance company. And he recognized all of the contractual guarantees, all of the attributes of the policy. And he knew that he was much like when you buy real estate, you're buying it for a deferred benefit. He knew that it was going to take him a couple of years to accumulate enough capital for him to borrow against, not to withdraw, but to borrow against. What he had planned on doing prior to the policy is he planned on taking the savings and withdrawing them and going and putting it as a down payment on a piece of real estate. He recognized that that would have involved transferring all the financial energy away. So he decided to put the policy in place in order to achieve the same objective. He delayed the gratification, he deferred the benefit, and now he's ready to go. So what I want to ask all of you, who pays for all the expenses associated with investment real estate? I'm not describing who's responsible for them, but who actually pays them. It's the tenants. Okay, now Ted's purchase options, right? Ted can withdraw his own cash from someone else's bank for the down payment and then mortgage the balance. Or Ted can access a policy loan on demand on his own terms for the down payment without interrupting the daily growth of his own capital. So here are the particulars of the deal. The purchase price of the real estate, 321,000. Down payment 64,200. The mortgage, 256,800. The gross rent, $2,500 monthly. The mortgage payment, 1,085 monthly. The annual income, $16,980. So the gross cash on cash return is 26.44%. Excellent deal. That's a great real estate investment opportunity. So what Ted did by depositing the $40,000 into the policy, and he has no plans to stop saving. He's Going to continue saving money. He's got the cash flow to do that. In year two of his policy, his total cash value was $71,759 and increasing every single day. Guaranteed contractually to rise in value every day. The total Death benefit was 1,057,000, growing annually. The loan amount available was 90% of the total cash value, 64,583. The purchase price, $321,000. He accessed a policy loan for $64,200. And by accessing that policy loan. Remember what I shared with you? When he accessed that policy loan, he did not interrupt any of the growth.

Of his own $71,759. That money is still growing in the policy every day. What the insurance company did is placed a lien on the death benefit for the amount borrowed. And the loan is not reported to Transunion. It's not reported to Equifax. It's a private loan and it's unstructured. So Ted controls the repayment schedule of that loan. And remember, Ted co owns the lender.

I want that to be a mic drop aha moment for all of you. Ted is a co owner of the lender.

So where does Ted want the financial energy flowing to? He wants it coming back to the company that he co owns. He co owns the lender. Now, the annual simple interest on the policy loan is 3980. Now I mark this as deductible, but I say this with a full disclaimer that we are not providing you with any tax advice. We do have two chartered accountants on our team who would be more than happy to provide you with tax advice. But for the purposes of today, I'm indicating that this may be deductible for you, but you should be obviously consulting with your own chartered accountant with someone who's providing you with designated tax advice. Okay? Now in Ted's case was in fact deductible just to share that with all of you. The mortgage 256,800. The gross rent the same. The mortgage payment the same. The annual income 16,980. So rather than flow that through the books of someone else's bank, this is capital that Ted can flow through his own warehouse of wealth so that financial energy can come back versus being flowed away. The gross cash on cash return is 427%. What am I concerned with here? Am I concerned with a cash on cash return or am I concerned with who's in a position of total and absolute control where the Money is flowing to and who that money is being put to work for, I am most concerned with. And so is Ted. Where that money is flowing to, who that money is being put to work for, and for how long. And Ted knows that every dollar that he repays toward that policy loan balance, he gets to reuse again. Because his total cash value never stopped increasing his cash value in year three. So it grew from year two to year three, 71,759 to 114,954. That's a $43,000 increase. In one year, he only deposited 40,000, but yet his total cash value grew 43,000 in that one year. So let's think about that. When would Ted ever want to stop depositing 40,000 into an account that produces far more than 40,000 every single time he makes the deposit? And he co owns the lender.

Naturally he wouldn't want to stop doing that, but he does have the control. He is able to stop doing that. And I'll walk you through how that works. His total death benefit also increased from 1,057,000 to 1,154,000. So his total death benefit grew by 97,200. And remember, the loan, the lien for that loan balance is on the death benefit of the policy, which keeps going up every year. So God forbid, if Ted passed away, the loan balance will be extinguished by the total death benefit, and the remaining total death benefit will be paid to his named beneficiaries income tax free. And his family can use the remaining death benefit proceeds to pay off the remaining mortgage balance and own the asset fully unencumbered. Is there anything stupid about Ted doing this?

The alternative would have been for him to withdraw his savings and transfer all that energy away. He has no daily cash value growth. He doesn't co own the lender. He has no total death benefit. He has no contractually guaranteed daily growth, he has no annual dividends, and so on and so on and so on. So what we did is we changed the process to achieve the objective. We didn't change the objective itself. The death benefit itself collateralizes the policy loan, not the property. So the loan is not registered as a lien on the property. It's registered as a lien on the death benefit of the policy. So let's use our imaginations here. If we fast forward into the future, can Ted refinance that property to take advantage of more real estate investment opportunities without having to worry about debt servicing ratios and all those other things that he has to contend with? Absolutely. Is he going to continue accumulating more cash value every single day that his tenants are residing in the property and paying off the mortgage? So is he going to increase his net worth even more every single day? Does this radically improve his return on this opportunity? Let's talk about the return on the result.

It is remarkably different because he became all four characters in the financial play. He was the depositor, the borrower, the banker, and the bank owner. And he's creating indestructible wealth. If the real estate market declines significantly, is Ted going to foreclose on himself?

Of course not. He's in a position of total control as it relates to that portion of the equity in the property. Can he, in five years from now, can he just take out a policy loan and wipe out the remaining mortgage balance and get rid of the bank altogether? Absolutely. And then he's truly in a position of total and absolute control. He controls the repayment of the loan. His cash value keeps going up. The loans aren't reported to the credit bureaus. His passive investment income tax is zero. These policies are exempt from the passive investment income tax rules. The tax on the daily accrual of cash value is also zero. The tax on the death benefit proceeds zero. And the policy also provides him with a source of insured retirement income. So once he's ready to retire and really enjoy all of that passive income, not only from his real estate investment properties, but the policy itself will provide him with a stream of insured retirement income if it's a corporate owned life insurance contract. Because yes, corporations can own the policy, corporations can pay the premium. Corporations can insure key people in the business, the stockholders. That corporate owned life insurance gives rise to the capital dividend account, and the proceeds from that capital dividend account can be paid to the surviving shareholders in the form of tax free capital dividends. Ted's objective didn't change, folks. What changed is the process that he used to achieve it. Where the money is flowing to and who the money is being put to work for. In order for money to compound, it has to sit still. And motion is a natural law. I don't know if anybody's ever seen stagnant water. As an example, would you ever eat or drink anything that came out of stagnant water? The answer is no. You could really get very sick or even die. And so if water is not in constant motion, what happens to all life on planet Earth dies. If air is not in constant circulation, constant motion, all life on planet Earth dies. If blood stops circulating through your body, you're going to pass away in very short order. If banks don't keep money in constant motion, the whole financial system collapses. And so banks don't use compound interest. Banks either charge it or they pay it. They don't use it. So isn't it interesting that the commercial bank telling you that compound interest is the most effective use of your money, yet they don't use it themselves? Aren't you just a little bit suspicious that you're being manipulated? The bank wants you to hand control of the motion of your money over to them so that they can gain the motion of that money and keep that money in constant motion. Think about your grocery store. If the bread, the butter, the milk, the eggs, if things aren't. The inventory is not in constant motion, It'll. It'll go stale, it'll spoil. So you got to keep capital in motion. But what I want you to understand is the impact that you're creating in your financial life right now. And you may not even be aware of it. If you can either.

Receive a check from Vern right now for a million bucks, and he'll actually write that check. If you want that, if you want that money right now, or if you could take a penny doubling every single day for 31 calendar days, which option would you prefer? Let's see what the net effect of a penny doubling every day for 31 calendar days.

Now, this is a very compressed version of compounding, okay? I want you to see the impact of interrupting it. So on day one, we have a penny. On day 31, we have 10,737,417.

Now, let's presume for a moment that we were going through this exercise, and on the 22nd day, we decided to take all the money out of that account and go and purchase something. Maybe it's a car. We take the 20,972 out and we go buy a car. The very next day, the 23rd calendar day, we start the process of doubling the penny all over again.

On the 31st day, we've got $2.56. So cumulatively, what did we accumulate for that 31 calendar days? The 20,009, 72, plus an additional $2.56. This is what's happening in your life. This is the financial impact that you're creating.

In the time of instant coffee, there's no such thing as instant gratification. There's something as delayed and very certain gratification. But there's no such thing as instant gratification. And as Recent investors, we understand that, we know that. So we are always thinking long range. We are not afraid to capitalize our real estate portfolio and we are not afraid to be coached because we want to do better going forward. Similar to that. The process of becoming a banker is very similar to that mindset because you practice the process. We have to think long range, we have to capitalize our banking system, we have to prioritize the flow of money and we have to be coachable. And one of the things that we do in a firm is we coach. We're not here to say to our clients, here's a policy, good luck, hope you get there. That's not the intention of a relationship. Our relationship going forward is going to be a long term relationship of consistent coaching going forward on how to maximize the use of the policy. The process of becoming a banker for the financial goals that you have for yourself and your family when it comes to real estate investing, investing in general or generally financing, anything for which you need money. Nelson, in his book he uses an example called A Tale of Two Sisters. Now I'm going to use an example called A Tale of Two JV Partners. So there are two JV partners. One is his name, one gentleman, his name is Philip. The other person, his name is Manish. So Philip is an engineer and Manish is a project manager. So now you know what their JV partners, an engineer and project managers like match made in heaven. They both love numbers, they both have great mindset and they collaborate on many great things together. So Philip is an engineer, he's age 38, wife age 39. So he's married and he's got a young daughter, age three. Manish, project manager, he's 39 years young. He's also married his wife, she's 36 years young. And Manish has a daughter age six and a son age one year old. Now they've been in real estate investments since 2014 and they've joint ventured on all real estate investments together. And they did that by using their own money to buy these properties. And certainly the remaining of the financing came from the bank or some private loans. Now good thing about investors are they're coachable, they're willing to learn, they have an open mind. They are not suffering with a human condition called arrival syndrome. And this is and I'm sharing that from Nelson's book. So in his book he talks about human conditions, human behaviors, and one of the human conditions he talks about is called arrival syndrome. He describes an individual who has learned everything that there is to learn today there's no such thing as arrival syndrome, guys. There's always something new to learn every single day. That's why you made a decision to be here. So again congratulations of on taking the time to be with us today. Now they discovered the process of becoming a banker which we also use the other acronym describing it called the infinite banking concept in 2016 after reading Nelson's book. So education is key in understanding the process. That is what we are doing today. So again get a copy of Nelson's book, read through the book. You will be glad that you did.

Now when we met with them in 2016. So here are some high level facts. So a they have some real estate investments. They had borrowed money from the bank. They had no life insurance in place. Total debt was about a million dollars bank loan on investment properties. And these properties were personally owned. Philip, his annual income at that time was $120,000. In Manish his annual income was about $130,000. So they made very similar income and they had very similar goals. That's why they work great together in terms of JV partner and what they want to do for their families from the real estate investment point of view. Now passive cash flow from real estate holdings at that time was about $20,000 per year between the two of them for the properties that they had purchased. Real estate investment goals for them. So they were looking at buying some properties, flipping properties. They were at that time really actively doing the buy and hold for future appreciation and positive cash flow which is something that we all want as real estate investors. And at some point they wanted to do some Burr strategy also. Now ultimate goal for them was obviously to gain cash flow confidence from the investment properties and all these strategies that they want to use in real estate and quit the 9 to 5. That was the ultimate goal. Here's how their IBC journey started. So the first thing that we did for them was to protect them. You know, we insure our real estate portfolio to the level of insurance that the house or the investment needs. We insure our cars to the point where for the value of the car, if you're renting, you're ensuring to cover your rental in case you have a flooding. You know, we go to an extent to even insure our phones and tablets, but we always forget to insure the most important individual and that individual is you. So for them they had no insurance which was a big problem. God forbid something was to happen to either one of them, bank may would have foreclosed on all those properties. And here's another fact, guys, nobody has a lease on life. We all have our best before dates. We just don't know what that date is. So we plan to live a long life. But hey, God forbid something happens. We want to make sure that we are protected. So initially, just to get them started from protection standpoint, Philip opened a policy on Manish, a term in life insurance for a million dollars in death benefit. And that term was good for 10 years because they're looking at 10 year relationship going forward. The good thing is this term can also be renewed for 10, 20 years to come if they wanted to keep that relationship going.

Expanded going forward. So Philip owned a policy on Manish, Philip is the beneficiary of the policy. And the premium that Philip is paying is $416 per year. Manish owns a policy on Philip. So same exactly what Philip did. Manish is doing the same exact thing. He started a policy from $1 million for 10 year term insurance. And for him the premium was $386,000. The difference was a little bit of age. Philip owns a policy in Manish, Philip is the beneficiary, Manish owns a policy in Philip, and Manish is the policy, is the beneficiary of the policy. So if one of them graduates, I'm just going to pick on Philip. $1 million gets paid to Manish on a tax free basis. So death benefit is always paid tax free. Manish will use that money to pay Philip's share of the real estate portfolio to Phillips five because they work well together, but they don't have any intentions of working with their surviving spouses because they don't have a relationship with them. They have a relationship with each other. So by doing it this way, they have protection for each other and each other's family. The premium is 400 bucks a year. To have that simple protection in place on in a JV partnership, this is the quickest way to solve the problem. When they discovered the whole process of becoming a banker, they wanted to get started right away. And again, going back to the things that we've shared today, they're not going to be afraid to capitalize. No different than they're not afraid to capitalize their real estate portfolio. They're not afraid to capitalize their banking system. They're thinking long range. So between the two of them, the premium was 50,000 per year. It was about 25,000 per person. But since then they've also added more policies. So that is where they got started. And the results were instantaneous. They could have used the policy right away, which they did for the things that they personally wanted to finance at that time, like cars, family vacations and things like that as policies kept building. Now what I want to do is I want to actually take you to down to 2022 because they've had this policy in place for five years and sorry, over five years now and then I want to show you what's transpiring for them on one of their real estate flip projects in 2022 when you have readily available pool of capital to access, opportunities will come find you. Or in other words, you will become an opportunity magnet. Opportunities will come track you down. Right now, January 2022, this is a house flip that they're working on today. The property purchase price is $160,000 in Edmonton. There's a little bit of renovation work required, about $20,000. So the total capital required for this project is about $180,000 and plus a little bit of closing cost. Now after the renovation is completed, they are estimating the flip value would be about, you know, the free market value for flip will be between 215 to $230,000. And they can get the innovations done in a matter of three months. So total cash value in their system as of today in 2022 is $215,000. So they've been capitalizing their policies since 2016. So as of today where they are, the total cash values in the policy are $215,000 growing every single day. Based on insurance companies contractual guarantee, which is by age 100, your cash values must match your death benefit. So their capital, their pool of capital keeps increasing in value every single day. Now what they can borrow as a loan against the cash value directly from the insurance company is 90% of the cash value. So they can initiate a loan of 193,500 if they wanted to. But all they need is $180,000 for this project. So outstanding policy loans do not impact daily cash value growth. So their daily cash value growth will keep happening. And I'm going to show you in a bit in their policies, in the system of policies what the daily cash value growth is as of today. It doesn't reduce the death benefit. So if you initiate a policy loan, your debt benefit does not reduce, there's annual increase in your death benefit no matter what. But if that would have happened, the outstanding policy loan will be deducted from the total death benefit and the beneficiary will receive the remaining money. Now the outstanding policy loan Negatively doesn't negatively impact any future dividends. So the companies that we work with and against this is why you have to implement this process with the right team. The companies that would work with insurance companies, when you initiate a policy loan, it doesn't impact negatively future dividends, but they are certain life insurance companies out there where you initiate a policy loan, they will impact your future dividends negatively. Recognizing that there's a policy loan outstanding, the policy loan doesn't show up on credit reports. It's a private loan. Private loan between the insurance company and the policy owner. It's not reported to TransUnion. It's not reported to Equifax. It's private. The collateral for the policy loan is the cash value. The lien for the loan is the death benefit. At debt, any outstanding policy loans will be deducted from the death benefit as I shared, and the family will get the remaining money. So daily cash value growth as of today is $60 per day. Now, how do I know that number? We can log in. So with some insurance companies, we have access to their portal. We can log in and we can check the daily growth on daily basis. I can capture the number today, I can capture the cash value tomorrow. And the difference is the daily growth. And that growth in the policy stays the same during the duration of that policy year. So if the policy started on February 1, so from February 1 of this year till February 1 of next year, that daily growth will not change. But after February 1st, going forward, every year going forward, the daily growth becomes better. So for now, as of 2022, the daily growth is $60 per day. If you multiply it by 30, I'm just considering 30 days in a month. The growth in the cash value is $1,800 a month for them, the policy loan. So they initiated a policy loan of $180,000. So here's the thing that I want to share. So if you're initiating a policy loan for $180,000, about $50,000 of that will be directly deposited in your bank account. The remaining is sent to you via check. Now, policy loan interest. So as of today, with this particular insurance company, the annual interest is 6.2%. Now this is simple interest, guys. And simple interest is charged on daily basis. So if you take 180,000, that's the policy loan that they took out from insurance company to go buy that Property, multiplied by 6.2% divided by 365. So this is the formula right here. 180,000 multiplied by 6.2% divided By 365. This is the daily interest. This is what insurance company is charging them on daily basis on outstanding policy loan. This is the daily interest. But this daily interest doesn't interrupt this daily growth which is $60 per day. So let me ask you all this question. If you give me $30 per day and in exchange for your $30, I will give you $60, how many times would you give me the $30 per day? Now I hope your answer is all day long and twice on Sundays. So the monthly interest on the policy loan is 917 and the monthly cash value growth is $1,800 per month. So they're recapturing the interest charged by the insurance company in the growth of the cash values and the policy. That is why we say the interest doesn't matter. And the interest that they're going to pay to the insurance company is going to add more profit to the money pool, which is more profit for the owners of the business, which two of them are owners, including everybody else who's participating. So that's going to make our future dividends much more stronger. Using policy loan they basically bought the condo free and clear. Because a policy loan didn't show up on TransUnion or Equifax. It was private between them and insurance company that technically owned the condo free and clear. The cash values of the policy was collateral for that loan and the lien is on the death benefit. Now when you're buying condos or investment just like this, the traditional way, using the bank where the collateral is the price property for the bank for that loan and the lien can be your income because if you default on the payments to the bank, they may garnish your income. Whereas with this, the lien is your future debt self your death benefit. Now as policy owners, they 100% control the repayment of the loan principal and interest. They decide what they want to do. Insurance companies cannot dictate the terms to them. So they are the banker. They chose to service just the interest only for now, which was $30 per day, 9, 17amonth. They chose that because it's a flip project. They only need that loan for three months. They're okay just paying three months of interest. Here are their options. After the renovation is complete and if anybody has flipped properties before, you can relate to that. We may not get that price that we want at some point we may want to hold the property for longer time. So they can either flip it if they get the right price in three months or they may Say, you know what, we're not going to get the right place. If you don't get the right place, that's okay. We can do a short term rental, delay the flipping. We control the debt. We can put a tenant, tenant can pay us all the loans back to our system and plus we can make some profit on the cash flow. And when the time is right, we'll flip it. So let's assume that they didn't get the right price and then they have to offer option two, which is the short term rental. And let's see what transpired in the whole deal. Now monthly rent in that area is about 1,600 bucks a month. Condo fee and property tax combined, it's about $300 a month for this condo. The interest that they have to pay to the insurance company per month is 917. So rent is income. So 1,600 minus 300, which they have to cover for property tax and condo fee, minus the 917 that they have to give to the insurance company. That's their positive cash flow by a short term rental. 383 plus if they're going to delay selling the property, there may be a little bit of appreciation in the property. Also, the cash value growth is $1,800 a month. So total increase in monthly net worth or in monthly access to capital again is 2001 83. The growth in the cash values plus the 383 per month, that's 2183. So here's a question for you guys. Have you received a rental income of $1,600 and had an increase in cash access of 2183 in a month? If I gave you $1,600 and you can actually use 2183, how many times do you want me to give you $1,600 a month? Now they had a vision. They understood the process of becoming a banker. They were thinking long range and now it's doing exactly what they worked on towards the capitalization. But here's the thing. They didn't wait until this year to start using the policy. They started using policies the day they actually got started because they were using cash to buy the things that they were saying goodbye to money and they were buying things, but the money was gone. So instead they started using policy loans starting year one to buy the things and they started recapturing all the money. And now in 2022 they can do even more things. And going forward, it's just going to get better. Now here's another thing. Which is the unseen now more opportunities on the same property because they own the condo free and clear. Like I mentioned, policy loan is private. Can they register a HELOC on the property from the bank? If you have a property that you own free or clear, can you go to the bank and register HELOC home equity line of credit? The answer is yes. Now, can they use that HELOC to maybe buy another property? The answer is yes. Now, if they sell the condo that they purchase using policy loans in future when they get the right price, can they pay back policy loans immediately without any penalties? The answer is yes. Can they re access policy loans again and maybe even more than what they've actually repaid back to the policy as a policy loan repayment? Can they re access all that money out again for next investment opportunity? The answer is yes, yes and yes. So basically using the process of becoming a banker, if they were able to register the heloc, they can actually take that HELOC and buy into the property and they have the original property using the policy loan. So by using the process of becoming a banker, they actually ended up buying. They will end up buying two property assets. They'll have two cash flows, they'll have two tax deductions. While none of their money was ever used for any of this because their own money kept growing in the policy every single day, income tax free. And God forbid, in case something happens to either one of them, they will not leave any indebtedness behind to the surviving joint venture or to the family at the same time. If in fact they leave behind properties that are paid for and then those properties will continue to produce cash flow for the family going forward if the unlikely happens. Death, graduation, do any of them leave any indebtedness behind to the family or JV partner? The answer is no. Can they use the policy in future for retirement? So as they are able to use the policies today to finance the things that they need in life, for example investment properties, the policies keep building up for future. Can they use that policy growth in future as a tax free retirement? Cash flow at no risk. Here's a fact. Interest rates go up, cash value go up. Interest rates go down. Cash values go up. Crypto goes up, Cash value go up. Crypto goes down, cash value go up.

One of the most common questions that comes up is Jason, can you connect me with the right person on your team to take a look at my financial situation, show me how to become my own banker? The answer to that question is a resounding yes. Of Course we do. We have a Becoming youg Own Banker call that is designed just for that purpose. And to schedule that call, all that you need to do is text the word schedule to 780-809-4599. That's 780-809-4599. There's no cost associated with having that becoming your own banker call. Don't bring any money to that call. Nobody's going to ask you for any. The process of getting to know the person that you're speaking with on my team, determining whether or not you can establish a basis to work together.

Doing so by making sure that all of your questions, all of your insights are all discussed and addressed before you decide to do anything at all. And just for clarity, we love to share with folks just to level set your expectations that we are the buyers in this process, we're not the sellers. Now what I mean by that is that if you think of any transaction that happens, typically the buyer is the party in the transaction who gets to do the rejecting. And we have to feel like there's a good fit. And of course you do too. But ultimately we're the buyers in that process in order to determine whether or not we have a basis to work together. Now, we haven't met anyone over the years who could not advantage by implementing this process. But as I'm sure you can appreciate, we don't work with everyone that we meet. There really has to be a good fit there. And by connecting with the right person on my team, you can take all the time necessary to establish that. And just having the call in and of itself is going to be a great way for you to explore how this process can be an advantage for you based on how you're structured financially and what your financial objectives are. And there won't be any pressure, nobody's going to back you into a corner and try and sell you a policy or anything like that. Once we both know that there's a good fit, then we move to the stage of engineering your system to make sure that it's put together to help you achieve your objectives. I know, and you should know now that deep down that you're capable of doing this. And here's the follow up that you can expect from us. Frequent and effective communication is something that we pride ourselves on. Now that doesn't work for everybody. Some people don't like talking to people and people don't like talking to them. And so if you're receiving communication from us, you can stop that communication flow at any Time. You can opt out of email. You can discontinue text messaging. You're the one who's in a position of total control over the receipt of that communication. We're going to stay in touch with you via email. You can subscribe at any time. Unsubscribe. Pardon me. You'll receive an invite to schedule a time to meet. And if we don't hear from you, then the right advisor on our team will extend a courtesy call to find a mutually convenient date and time to meet. And if you prefer not to meet, just let us know. And as long as you leave happy, that's okay, too. Let's dive into the family bank. Now, what's really important is that while we're describing how to radically improve what you're already doing financially to generate better returns, to become all four characters in the financial play, I want to share with you the importance of keeping the money in the family. And we educate our clients on this through what we've named the Family Banking System. And this is all about what Nelson described in his book Becoming youg Own Banker when he said, this reminds me of a phenomenon in physics. I want you to take a pail of water down to seaside. I want you right at sea level, and you're going to heat up that water to 210 degrees Fahrenheit. And at that point, all that you have is really hot water. But if you heat it up to 212 degrees Fahrenheit, you have live steam with unbelievable power. And the steam engine changed the world. But it doesn't happen until you get past 212 degrees. There's a lot of heat that goes into the process up to that boiling point. But the dramatic power comes suddenly. Now, you may remember when we walked through.

Ted's example and what I want to demonstrate to you, I want to show you exactly what Nelson is describing as it relates to the phenomenon in physics. What Nelson is describing in heating up the Water, using that example, he's talking about adding financial energy to. To your system. So in this case, what Ted was doing, as I'm outlining in blue, this is Ted heating up the water, okay? He's depositing premium into his system, and he's getting that pot of water to 212 degrees Fahrenheit. So if you look in the first year, all that Ted has is a really hot pot of water. He's put 40,000 in premium into the policy. The insurance company piled up 33,593 in cash value. He has a loan amount available of 30,234. And a total death benefit of 960,000. If we fast forward to year six, then you can see that Ted's premium actually came down. It cannot go up, but it can come down. And in this case, we see that the premium. Oops, let me just go to the field that I want to highlight here. There we go. We can see that the premium comes down to 10,034. But take a look at the annual increase in cash value just in that year. So he pays $10,434 in premium, but the annual increase in cash value just in that year is $19,515. This is a policy that has achieved 212 degrees Fahrenheit. What Ted has at that stage is live steam. And so pick any year thereafter. Take a look at what am I putting in, what am I accumulating. So if we go to year, in this case year 10, Ted deposits the 10,434. The annual increase in cash value just in that year is 23,700. And the process continues. Now, what Sarblo shared earlier around the contractual guarantee is that at age 100, the total cash value and the total death benefit must be the same. So at age 100, we can see that the total cash value and the total death benefit are identical. He's put $699,239 of premium into the policy. The dividends paid alone were $1,652,000,000. The total cash value accumulation, $2,915,000. And throughout the lifetime of that policy, cumulatively, he had access to a loan amount of $2,623,787. If we're able to create this system that gets us to that, that boiling point where the dramatic power comes on very suddenly. I personally could not be convinced to not deposit 10,434 to produce 19,515. It would be illogical for me to start flowing that 10,000 through someone else's bank. I want to keep that money flowing through my system. And with Ted, remember the annual income from that investment property, if he still maintains ownership of that property, he can flow that income through his policy as additional premium. He doesn't just have to deposit the 10,434. He can still deposit 40. So all the additional capital that he's got, it has to reside somewhere. He should be flowing it through his own system, not someone else's. And so I wanted to just show you the power of creating that financial energy when you change the process of where that capital is flowing to. Now, what I want to further demonstrate is I want to show you one of my earlier policies. This is a policy that was created in our family banking system back in 2012. And this photograph that you see was taken when my twin daughters, Caitlin and Charlotte were born. And they were born in that very same year, of course. And the moment that that policy was created, the policy began accumulating. Cash value began growing every single day. And I deposit $20,000 per year into this one policy. Now, in 2013, the first dividend and paid up additions were added to the policy. The reason I use the image of a tree stump is that I want you to see what's happening in terms of the compounding growth of that policy. Now, you've never seen a tree shrink. Mother nature continues to feed it with water, nutrients. The tree just continues to grow. And each ring represents one year of uninterrupted growth. The very same phenomenon is happening inside the policy. In 2014, we took a family vacation and I mean my whole family. Second dividend was paid, paid up, additions were added. 2015, we financed a Honda Odyssey. So we had ready access capital on demand. On our terms. We went and purchased the car. We own the car free and clear. The lien for the loan balance is on the death benefit of the policy. The loan is not registered on our credit bureau. We own the car free and clear. God forbid something would have happened to me, the loan balance would have been paid off and my family would have still owned the vehicle that we used the policy loan to buy in the first place. 2016, the fourth dividend paid up additions added to the policy. Same thing. 2017, we purchased a brand new limited Ford Explorer capital on demand, accessible on our terms. We buy the car, we own it free and clear. We're making payments back to the policy, no different than the payments we would have made to the car finance company. We're just changing the process of who's getting all that money. 2017, 2018, another family vacation. 2019, another family vacation. 2020, dividends paid up, additions continue to be paid every single year. In 2021, I purchased a Nissan Altima right off the lot and used policy loan proceeds to purchase it. So this is what is happening. And now you can see a more recent picture of my twin daughters and I, both of my twin daughters and my other two children. Each one of our children have five policies in place on their lives. And my oldest is 13. So think about where they're going to be when they're my age. I'm 47 years young. Our children will never see a commercial bank for the use of anything other than convenience. Whatever that medium of exchange is, if it's a debit card, if it's cryptocurrency, whatever that is, our children are going to finance everything through the family banking system. Their cars, their property, their real estate, investment opportunities, their business opportunities, etc. It's all going to flow through the family banking system. Now if you think about my own policy example that I shared with you, I'll walk you through some of the questions that will help you continue to develop your thinking around this new way of doing things financially in your life. So how much did the death benefit increase from day one through year ten? Well in this case it was $393,000 of additional death benefit growth. How much tax is due on the daily cash value accumulation and the annual dividends? 0. What was the total cash value accumulation from day one through year 10? 220,948 and rising daily. Did the money for the vacation and cars come out of the policy or from the life insurance company? The life insurance company. All of this money.

Every single penny of this money continues growing inside of my policy every day uninterrupted. That that creates a peaceful, stress free financial way of life for me and my family. And this is just one of the policies in our system. Now who controlled the banking function in the repayment schedule of each loan when we took vacations, purchased the cars? I did. The policy owner who co owns the life carrier? The lender? Me. Who has access to all the loan amounts repaid plus more?

Me.

How much total cash value was ever withdrawn from the policy? The answer is zero. When the life insured dies, will the family get all the money put in plus more? Absolutely. How much tax is due on the payment of the death benefit proceeds? I'll give you one guess.

Zero. Now here's the power of not being afraid to capitalize, not being afraid to put your money into your own system versus continuing to redirect that financial energy to someone else's system. So on day one, the total death benefit of my policy was 721,000. Year 10 it's 1,114,000 and rising every year. The total cash value on day one was 4,500 bucks. In year 10 it's 220,000 rising every day. The loan balance on day one is zero. The loan balance today is also zero. The loan amount available 4,050 on day one. 198,000 today. Now. How much does it cost to dream big? How much does it cost if you don't? It costs everything. Taking action is the only way that you're going to achieve success. And I want to share with everybody the reason that I talk about that is. I grew up in a small mining and forestry community. I was born and raised in Timmins, Ontario. You may be familiar with Shania Twain, country music singing superstar. Her real name's Eileen, by the way. And growing up in that community, especially in the early 1980s, I was just a toddler at that time. My parents constantly argued about money. And so that was the environment that I grew up in. And when interest rates skyrocketed, we practically lost our home on more than one occasion. My father's response to all of that was to go out and work more, to work harder. We didn't have any role models in our life to show us how to keep money, how to multiply money, and more importantly, how to keep that money working for our family. If my parents knew what I know now, their marriage may have remained intact. Neither one of them may have passed away so young and so prematurely. I was in my early 20s when both my parents passed away suddenly and unexpectedly. Neither one of them were life insured, and so there was nothing silver in my home. And I would often growing up, I would try to deal with that trauma that I was going through by dreaming big and projecting myself into a whole different.

World. I would be in my bedroom, and I would just close my eyes and I would picture myself in a, you know, a nice home and open the fridge and there's food in the fridge, and the house is nice and warm, and I don't hear arguing. Those were the things that were going through my mind. And when I was introduced to my mentor and I began to take action because I was determined to change things, my whole life changed. But it all started there. It all started with the desire. There was a desire to change.

And so you can focus in on whatever you choose to focus in on. You can focus on the policy values, you can focus on interest rates. You can focus on where the money's coming from. You can do all of that, but none of that crap matters. If you don't have the desire to take action and make change, none of that matters.

And so I began my journey with this process when I was 32 years young. If I had known this when I was 22, I would have started then, if I had just discovered it today. I would start right now.

You're not too old to do this. Think about the last time you went to your commercial bank to deposit money. The teller didn't ask you how old you are. What the bank wants is the money. And so you can do this too. And it's simple once you know how. But for heaven's sakes, you got to get out of your own way, of your current way of thinking.

Your consumer brain is fighting you on interest rates and all that other stuff.

What matters is who's in a position of control. Who's controlling the banking function in your life as it relates to your needs. If you're abdicating that responsibility to someone else, you're not only abdicating the responsibility, you're abdicating the opportunity. And the opportunity is what's going to produce the most result. So focus on a return on results and it is up to you to generate that return on results. We can show you how to do this, but we're not going to be responsible for you. We're responsible to our clients, not for them. This book titled becoming your own banker. The two most important words in this book are right here, your own. We want you to become independent. We don't want you to develop a dependent relationship with anyone on my team. We're here to encourage you and coach you and mentor you. And we're really good at what we do. But believe me, we will coach you, not coddle you. And so if you have possessed the desire to change, this is your path forward. If you don't, hey, as long as you leave happy today and hopefully you picked up some new knowledge and you got some value out of spending time with us, that's great too. I always talk about setting bigger goals because there's less competition for them. And here's where we are. At the 13th year in our journey, we're now in our 14th year. Total death benefit in our family banking system is $30 million.

Rising every month. We have policies that come up for their anniversaries all the time. We have 62 policies in our family banking system today. Total cash value today is 2,002,000 rising every single day. Our loan balance today is 200,982. And that's an unstructured loan. And there's more loans going through. For some recent investment opportunities that tracked me down. I didn't go out looking for them. They found me and I am able to take advantage of them with the snap of a finger. I don't have to deal with any Lengthy nosy credit applications, any bankers, I don't have to deal with any of that. That's a peaceful way of going about things for me. In addition to that, the loan amount available today is 1.801 million. So I have ready access capital on demand. And what I would say to all of you is that if you are able to coach your children on how to learn this process and more importantly, implement it in their lives. I'll give you a recent example. My nephew Ethan is 16. He recently took out a policy loan from the family banking system to buy his first car. He bought this used Mitsubishi lancer for like 3,600 bucks. He couldn't have been any happier to sign the loan document and to understand that all the money is flowing back to the family. He didn't ask me what the interest rate on the loan was. He didn't ask me what the rate of return was. All he cared about is where the money was flowing to. And kids have a much higher degree of neuroplasticity than adults do. Kids pick up on this much quicker than we do as adults because their head bones haven't been polluted with all that financial noise. What Ethan knows is that he's going to be able to use the family banking system for the rest of his lifetime. My nephew Evan, 13 years young, bought a brand new computer system early in the school year. He delivers papers, he referees hockey games, he makes about 300 bucks a month, pretty good for a 13 year old. He took out a policy loan to finance the purchase of the computer because he understands the importance of keeping the money in the family. We host a meeting once a year. It's our annual family banking meeting and we discuss everything that I'm talking to you about right now. You can teach your family this. So this is not confined to, to your investment activity. This should be expanded to your family so that you can not only continue to accumulate great assets, passive income, cash flowing assets, but you can also transfer those assets to the next generation tax free. And I haven't read a single client's will or estate plan that names Revenue Canada as a beneficiary of anything in their estate yet. What most people don't understand is that the moment you die, and you're all going to die, you're deemed to have disposed of all of your capital property at fair market value at the moment of your death. And so if you trigger a taxable event, where's the money going to come from to pay it? Let the life insurance company pay that bill. For your family, so your family can enjoy everything that you worked so damn hard for. That's the power of this process. Or Sarblo would say, the unseen. The unseen elements of becoming your own banker. The infinite banking concept.

What happens with the policy on the JV partner when the deal is done? So the person's still alive, but maybe.

The deal is done, the policy remains in force, so the policy owner has full contractual authority. And the moment that that policy is put into place. So, Vern, you and I are joint venture partners. Partners. I have a policy in place on your life. And then we already. I always like to say in joint venture discussions, build the divorce before you even get married.

And so you build the divorce before you get married. And you say, okay, we're going to exit this property at year five. The life insurance policy at that point remains in force. So, Vern, we may negotiate in the deal where I say, hey, Vern, you know, at the end of the fifth year, you can buy the policy from me. If you want to take it with you, or if you just want to walk away from the deal with your share of the net realizable equity in the property, then you go ahead, go your direction, I go ahead and go mine. But I am maintaining this policy, and there isn't anything that anyone else can say or do about that. So if you had another partner who came forward and said, hey, I don't want you to have insurance on Vern's life, and I want you to cancel this thing and they call the insurance company. The insurance company is going to say, the policy owner has total contractual authority. We're just the administrator of the contract. We can't change anything. The policy owner is the only party that can make changes. That's a really good question. And that's why Nelson decided to maintain ownership of that policy. Because he bailed out that joint venture partner who bailed on him.

He paid off all that debt, and so he knew that he was going to get reimbursed plus more when that joint venture partner passed away.

Yeah.

So, Jason, as the policy, the contract owner, to your point about building the divorce before the divorce happens, you can actually change or negotiate or move those beneficiaries around as well. If we have a plan in place. Hey, after the deal's done, Jason, we can change how the beneficiary, the death benefits are actually distributed to the as well, right?

Oh, for sure, Absolutely.

Yeah.

Because again, the policy owner has total control over every element of that contract. Access to cash value, named beneficiaries contingent owners, et cetera.

You mentioned when you were a kid, you'd lie down and you'd visualize creating a big life. And I did many of those same things myself. But one of the things that I wanted to do was I wanted to play football. Right. At a professional level, which we know you could do all the right things. You can eat right, you can train, you can go to the best schools. And there is no guarantee that you're going to be playing on the super bowl on Sunday. Right. There's no guarantee. But just imagine for a moment if you could go back and you could visualize whatever life it was that you wanted to achieve, whatever envision, whatever vision you had for yourself. I want to win the Super Bowl. Okay, great. Well, there's no guarantee. But if I create this policy system and I have a big vision for my family, all I really have to do is engineer a system that will help me create that result sometime in the future. As long as I hold up my end of the bargain, as long as I continue to deposit my premium and I'm a responsible banker, the larger system I build, the larger the death benefit I create, the more certainty I'm actually creating in my own life in terms of creating wealth. That hit me like a ton of bricks last night. I thought, holy snap. As long as I hold up my end of the bargain, I'm building an indestructible result.

That's right.

That is a powerful concept to just absorb, you know.

That's right. And no matter what's going on, look at what we've endured as a global civilization. Look at what we've endured these past few years. And regardless of what's going on, the process of banking carries on, no matter what. Yeah.

In fact, the process of banking has thrived throughout this entire pandemic. You get to take advantage of that whole process.

Yeah. And we are blessed beyond the definition of good fortune. To help people see the fundamental truth that someone, some organization, must perform this function as it relates to your needs. It can and it should be you. And we're living proof of that being possible, and what the net effect of that is. And that is a responsibility and a privilege. And to be able to carry on Nelson's message and to be able to share that with Canadians coast to coast is. It's a real privilege. And this process is more caught than it is taught. We can share all the knowledge today, but unless a person catches it, they may just not be ready. Now, maybe they're. Maybe they'll have a period of introspection, and then it might come to them later. We get calls from people all the time. Hey, remember that webinar I was on in November of 2018? Well, I'm ready to go now. I've rethinked my thinking. I'm in a position where I'm ready to proceed. And we ask, what tipped the scale? Why now? And the response is always, always remarkably similar. Well, you never pressured me. You never tried to back me into a corner and compel me to do anything. All you kept doing was answering all my questions. And you nurtured me. You stayed in touch with me over the years.