Exactly How to Build Tax-Free Wealth As A Business Owner

To a webinar on the process of becoming a banker. The infinite banking concept focus for today is business owners. So welcome now in the zoom chat and if you are joining us live on the YouTube you can always send messages in the comment. We have team in the back end replying back on the chat and the Q and A's. But on the zoom, if I may ask all the zoomers, in case you have to share excitement, something that comes up for you as an aha moment, please use the chat to share that. So just to test if we all know where the chat is, may ask everybody to just share quickly. Positive power up. What is positive in your life today? It could be something personal, it could be something professional. So let's start this talk with some positive power up. May I ask everybody to just share in the chat what's positive for you? And if you're on the YouTube, just comment in the YouTube section what's positive for you. So so Doug says family. So Doug, I'm with you. Family is my positive power up all day long. Francisco says being with you guys. Francisco will appreciate you being here today. John says my son's wedding, Kurt had a great marketing meeting. That's fantastic. So someone talks about health. So new life, new driven goals. Roman says my son just turned 18. Congratulations Roman. Newborn daughter Leon. Congratulations. So so so thank you all for sharing. Positive Neil, congratulations on passing the llqp. That's fantastic. Sandy says grandkids. So perfect. So that's chat. Now if you have a question that'll come up for you A I can assure you we've been doing this for about 15 years now. So let's say we've heard a lot of frequently asked questions. So the way my presentation is going to flow today, I'll be answering all the frequently asked questions that do come up. But there's something that I missed. Please post that question in the Q and A section and in my team will answer the question real time. If there's a question that we want to address in a group setting because we always keep time for Q and A as a panelist towards the end then we'll share that question in a group setting for the benefit of the group. But without further ado, let's, let's dive in. So becoming your own banker. The infinite banking concept for business owners. So I'm going to share my screen sukman. May I ask you to confirm if you're able to see my screen? Okay.

Yeah, we can see your screen. Perfect. You can see Nelson's book Exactly. All right, awesome. Thank you. So yes, becoming a banker for business owners now. SNF Financial is our company in Canada, in U.S. we are, we are operating as a brand name Life Eva. So I've been sharing this in my talks and we are so proud and excited to serve folks across the board now. So we operate across North America. We're super excited about it. Now everybody shared the positive power up. So for me, positive power up is being here today, being able to share this message and obviously my family is always my positive power up. Now may ask everybody to share in the chat box if you've read this book and sukman, let's see what comes up. And if you're in the YouTube today, share in the comment section if you read this book.

So we are getting a lot of yeses so far. Okay, perfect. So lots of yeses. That's, that's amazing. Now here's an interesting question. How many of you actually have the book but haven't read the book? So let's get that action in the chat box. Have it. But I haven't read it. All right, well, thank you for being honest. And you know, I've. I bought this book back in 2015 and yes, I confess it was sitting on my bedside table for almost two weeks before I started reading the book. But this book has changed my life. It has changed the life of several thousand clients that we serve. Addison in financial and Life Eva. So if you have a book, you haven't started reading it or if you don't have a book, you haven't bought it, well, you have an opportunity today. That's what Nelson would say. So I'm just going to leave it at that. And if you haven't watched Nelson's documentary, please ease on over to nelson nashfilm.com if I may have one of my colleagues as to share this link in the chat and also please share this link in the YouTube comment. So if you want to get a good glimpse of who Nelson was, the pioneer and the founder of the process of becoming a banker, this is how you do it. Go watch this documentary. I'm sure you'll find something amazing. 100%. Every time I watch it, I get inspired. Now, Nelson always starts his talk by sharing this and he would say everything begins with the way that you think. Think. So a we have to start thinking but in addition to that, we have to actually develop the ability to start thinking differently. And in all the content that we have on the YouTube called the Bankers Vault channel, on our podcast channel Wealth Without Bay street on the books that we provide as additional resources from our website Smart Ca the purpose behind all the content is to help people start thinking differently or start or have help people start developing the ability to think. Because everything begins with the way that we think. Now today's talk is on business owners, so I'm going to dive right into it. Now your business today earns a income called revenue. Now you may be in a business where you have to sell goods to earn that revenue. If you are, for example, if you are in Amazon retail business, you sell goods via Amazon. In exchange for that you own a revenue. Or you may be in a service business like a consultant. And as you provide your time, your good guidance to other folks that you help to serve. In exchange for that you own a revenue. So your business could be earning revenue via goods or services or your business could also be earning revenue through passive income. You may have some passive income investments, stock investments, real estate investments, multifamily. You may own other businesses, right? You may do, you may be doing private lending, things like do that. So those are different ways for business to run an income. Now, income comes into business. Now it, when it comes into business, it ends up in a business checking account in a bank. So your business has a checking account or different than how you have your own personal checking account. So when your business gets paid for the services and goods that the business sells, that's where the money goes. So the bank sees your money before your business actually sees the money. So that's just interesting. I said this in all my talks, that the bank sees your money before you see your money. In this case, the bank sees your business revenue before you see your business revenue. And once the money's in the business, then the business starts to use money for the purpose of.

Paying for the things that the business needs for the purpose of team members, IT support, things like that. So business has payroll. It could be, you could be on the payroll in the business as a business owner. You may have team members on payroll as, as support, you may have contractors, so business has payroll. You may own your property in the business. You may be paying mortgage, you may be paying rent, you have marketing and advertisement expenses. You got equipment financing, you may be leasing equipment. You may, you will have accounting fees for sure. You will have, you may hire some IT consultant to do run your business from computers, from servers, things like that. You will have legal fees to run your business. And there's so many other things that the business is presently spending money on. So monies come into the business monies, leave the business. Now, if you add up all the things that your business is presently spending money on. So team members, business owners, income, income, mortgage, rent, utility, you may have loan repayments, credit card debts, payment to vendors, you may have insurance premiums, tax installments, legal bills, contractor fees, and if you add up all the payments that you have today on a monthly basis. So just think about it, just add in your mind's eye, just close your mind's eye for literally two seconds and just think about all the payments that your business has to make today. Is that a lot of money or is that very little money that the business is responsible for in terms of making payments?

I'm going to be asking a lot of rhetorical questions today. Just a heads up. So again, is it a lot of money that's leaving your business? There's a little bit of money that's leaving your business. I know the answer is it's a lot of money. Takes a lot to get the job done. Most business owners that I meet and I ask them, hey, what's your revenue? And then second question is obviously, hey, what's your operating expense? And based on the nature of the business that they have, it could be anywhere between 30% in terms of operating expenses all the way to up to maybe 60, 70% in operating expenses. A lot of things are required by the business to run the business so that the business can help support everybody who's depending on the business, including you, the shareholder. Right? So a lot of money is leaking the business today on all those things that you see on your screen today. And nothing happens to the flow of money without the function called banking. A function called banking has to be performed for the money to flow if presently all the money is flowing outwards. And the reason why that's happening is because you're familiar with the function called banking. When it comes to your business, you're just not controlling it. And the whole idea today is for your business, in addition to what the business does on a day to day basis to earn revenue. In addition to that, it's for your business today to also become and practice the process of becoming your own banker as a shareholder. Those are the great decisions that you can make on behalf of your business. So don't just be in business of earning revenue, but also be in business of controlling the banking function for the business that you presently have. So the money is retained in the business, not leaving the business.

Now every decision, and this is straight from Nelson's book, and if you are on our webinar for the second time or third time, you will pick up on this. And if you, if this is your first time attending a webinar, hey, congratulations for being here. But we like to repeat things because repetition is the best practice. Every decision that you make with the use of your corporate dollars today is a financing decision. Meaning you either borrowed money from a bank and you use that money to buy the things that the business needs so that you can scale the business and then you have to pay the bank back interest on that loan. So because interest is involved, that's financing decision. The other way for you to buy the things that you need in a business is by paying cash that your business has and you pay cash for the things that the business needs. Then you making a decision as a shared holder on the behalf of the business. The decision is not to earn interest and not to earn interest is also a financing decision because once the cash is paid for the goods and services that the business needs, that money is gone forever. You can never earn any interest in that money for your business. You can never reuse that money again. It's gone, it's permanently lost. So either you pay interest or you give up the opportunity to earn interest. So all day long today you are making a financing decision. You just, just don't know it. And it's not your fault if you don't know it. But it is certainly a problem that you need to fix. And you can fix that by becoming your own banker for the business or your business also becoming your banker in addition to what the business does. Now, here's, here's a thinking exercise now. If today you have to make a plan for your business for the purpose of scaling your business and you have to have that ladder in place, you're going to build that ladder which is the pathway to grow your business. You can see there's three options on the screen. There's option A, option B, option C. If today you have to build a business plan that that ladder, that roadmap, which of these options will you select to grow and scale your business? Option A, where you're running on a incoming escalator, or option B, where it's just a regular ladder. And then you're moving up, but the pace that you can move up is the is based on the effort that you have to put in. The more effort you put in, the quicker you can go up. Or option three is where you build a upgoing escalator as a plan. And even if you just step on that escalator Your business will still scale because of what the escalator does. But if you actually move, if you move forward, take a step forward on the escalator, then you'll get to your goals quicker. So if you had these three options, again, rhetorical question, but I need some participation. Which of these options would you select?

Sirman, what's coming up in the chat? Yeah, sorry, we got all C's. Smart people. Yep. Nobody would ever select a name. Whenever I have asked this question, nobody said, I like the. No, it's usually the B and the C. But between B and C, everybody wants to see. Now, now here's something that I want to disclose now. So option A is, is. Is the way to finance the things that you need in business where paying interest is involved. Because when you pay interest, that interest is not working in your favor, it's working against you. This caught that. It adds to the cost of running the business, which reduces your overall profitability just on the transaction. Now, option B is where you pay cash for things in your business. You're not borrowing any money, you don't have any debt, you're paying cash. So there's no interest that has a headwind. But then the only way that you can scale is, is. Is the. Is based on the pace that you can actually save up money. Because if all you want to do is save up money and, and use your money to buy the things that you need to grow, grow and scale your business, the pace at which you can scale and grow your business is the pace at which you can actually save money if you don't want to get into debt. And the option three is where you don't have a headwind like an option A and you're not paying cash like option B, but you actually have a tailwind pushing ahead because the option C is where you're actually recapturing the interest on the things that you need to finance in your business. And that can only happen when you implement the process of becoming a banker in your business. So everybody agreed, everybody wants option C, which is what I want for you also. And the only way to make that happen is by making sure that you become your own banker. Because by becoming a banker, you get to recapture the interest. And for those who are new, and you may not be familiar with the word recapture interest, that's okay. It will become clear by the end of my talk today.

Now, financial tailwinds. The process of becoming a banker is about recapturing the interest on the things that you financing in your business today. And again, I'm repeating myself. Every decision that you make with the use of money is a financing decision. Now, to implement the process of becoming a banker, there's a tool that's required and you can see on the screen I'm using a Swiss knife as a tool because Swiss knife is a multipurpose tool and no different than that, the tool that we're going to use to implement the process of becoming a banker so you can create that financial tailwind for yourself and your business going forward. The tool is also versatile tool. It's customized to every individual business needs.

Now the tool that we use is called participating dividend paying whole life insurance. Now let me actually ask everybody in attendance today who has heard about participating dividend paying whole life insurance before.

John has heard about it. Tanner, Ryan, Herbert.

We'Re getting some nos. Some, yes, some says I've applied for it, which is fantastic. Congratulations. I hear from YouTube before. Awesome. All right, now, participating dividend paying whole life insurance is a mouthful. So I'm going to break it down for you. We're going to understand the attributes of the tool a bit and then we'll dive into a case study for a business owner. Now the reason why we use this tool is because this is the perfect tool that has all the required attributes to recapture the interest. Remember, to create that option C effect, you have to recapture the interest. And if you recapture the interest, you're going to create a financial tailwind. So this tool has those attributes. That's why we use it. So here's some of the things, some of the attributes of the tool. So the first thing is the premium. Now it is a life insurance product. Now one thing that I should ask everybody is do you presently have an insurance product? Doesn't matter what insurance product. Do you presently have an insurance product?

Yeah, you know, home insurance, car insurance, health insurance, travel insurance, you have it or you may have purchased it. Now one thing is common between all insurance products and that one thing is premium. You have to pay a premium in exchange for that insurance company to promise you the benefit. It's a promise to deliver the benefit in exchange for premium. No different than that even for a participating dividend paying whole life insurance. Because this is like it's an insurance product and more specifically it is life insurance. So premium is there. Now when we talk about this, this, this tool, we're using this tool to implement the process and the process is called becoming your own banker. So to create your own banking system so they can create that financial tailman for your business. You're always moving ahead financially.

You have to put the money into the tool because you're creating a banking system now. Banks need deposits. Your business is presently depositing a lot of money in someone else's bank. And at the end of the year your accountant would say, hey, here's how much money you have retained in your business. My question is, who's actually retaining that business? You or someone else's bank? It shows up on a financial statement, it looks really good. But who is actually retaining that money? You or someone else's bank? You have no objection of someone else's bank retaining your money? Then why should you be objecting retaining your own money inside an entity where you can build your own banking system going forward? So the premium has to be intentional because premium is a solution to the problem. The problem that we're looking to solve is to create a financial tailwind. Now if you are retaining 100 bucks per month and you do that for 12 months in your corporate bank account, at the end of 12 months you'll have $1200. Simple basic math. Now if you end up retaining 200 bucks per month, if you end up setting aside 200 bucks per month in a corporate bank account and you do that for 12 months, you left $2400 retained. So the more you set aside in your bank account for the purpose of setting aside for very specific use, the more you'll have as retained earnings. Same applies to this. The more you put into your system as a premium, the more it'll have generated, accumulated. So you can control more of the banking function as it as the business needs. So premium is intentional and it is what you want it to be. The more you put in, the more you'll have. And premium is the solution to the problem. It's not the problem. Again, we got to change your mindset. It's not about how much lease should I put in to get the most benefit out. It doesn't work like that. It should be all your retained earnings. Technically all retained earnings should be going into the system. And then so capitalization with premium has to be very intentional. And when we design a system, we design it for very specific objective, short term objectives, long term objectives. All right, so that's premium. The the second so called attribute in a participating dividend paying whole life insurance, just because it's a life insurance tool, there is death benefit. So corporation after tax corporate dollars is paying the premium. And all active businesses in Canada up to $500,000 in income qualifies for small business tax deduction, which in Alberta is 10% in Ontario, maybe 12%. It's based on province, but 10 to 12 is the tax. So after tax corporate dollars we put in as premium. And it's a policy that is owned by a business on the shareholder of the business because the business has a beneficial interest in you as a shareholder. So business is paying the premium, business is the owner of the policy and the death benefit is on the shareholder. So God forbid something happens to shareholder, you the shareholder, you die. That death benefit is paid into the business tax free. And we'll talk about from estate planning standpoint how it's, it's effective for the heirs to get that money out on a tax free basis too. All right. So that benefit is received tax free by the named beneficiary upon the death of the life insured. Now I say this in a good humor.

Financial planning or any sort of money planning, you can call it financial planning will be so much easy if, if we know the day, the month, the year that you're actually going to pass away. And then we can just work backwards to create that plan. We don't know what your best before date is. We all have our best before date, we just don't know what the date is. But what is for sure is we all are going to graduate one day. We all are going to become an angel one day. And then this is where the death benefits can come into handy. It's going to be paid tax free into the corporation. And from the corporation is going to be extracted by your estate, by your heirs on a tax free basis also. So corporation paid the premium, not you personally after tax corporate dollars. That's what went into policy as a premium. The death benefit is paid in the corporation and from the corporation it's extracted tax free out. Now the third component which is what we use to implement the process of becoming a banker is cash values. Cash value is the capital that is generated that accumulates in the policy.

So cash value is a capital it grows on daily basis. So inside a corporate owned life insurance policy, the cash flow growth is on daily basis based on insurance companies contractual guarantee. The contractual guarantee basically stipulates that is that by age 100, total cash values of the policy must equal the total death benefit. So if you today you business owner your age 40, every day you wake up, you're one day closer to age 100. So today you're 40, tomorrow you're 40 years and one day and then you're 40 days and two days. So every day you wake up, you one day closer to age 100. Hence because of this contractual guarantee, your cash values just keep increasing every single day. It doesn't matter which way the economy goes. The economy can go sideways, bottom top, stock market can go jump up the amount Everest and commit a suicide. But your cash flows in the policy are contractually guaranteed to grow on a daily basis. The cash value growth is tax free. And the cash value and and I just want to expand on that. Cash value is not money, it's not Canadian dollars. Cash value is capital. What cash value represents, it represents present value of the future death benefit. So if you think about gold, silver, just using those as examples, those are capitals. It has a capital value. But gold and silver can be converted into dollars if you do decide to sell gold and silver, if you do decide to borrow against it. But gold and silver is capital value. So cash value is capital. It grows on daily basis to master that benefit by age 100. But cash value should not be confused with money. It's not money. It can be converted into medium of exchange. When you do decide to do that. All right, the last component is dividend. So whenever someone has or someone owns, in this case the business owns this policy on you. As a business owner or business can also own a policy on the key person in the business.

You participate in the profit generated by the insurance company. So you just don't own a policy. You co own the insurance company. And the insurance company is not a charity. The insurance company is there to be run and operated as a business. And when that business becomes profitable, that profit gets shaped amongst all other participating dividend paying policy owners. Because participating dividend paying policy owners co own the insurance company. And just for trivia, just just want to give you an example. Insurance companies in Canada have been paying dividends since 1848. So if you think about it, we're in 2023. But since 1848 they've been paying dividends. So that's 170 plus year track record of being profitable. Because a business cannot pay dividends if the business is not profitable. So are you aware of any other business that has produced and distributed profit over 170 plus years? If you know please share now. Dividend is the divisible profit from the insurance company. And dividend that you receive inside a policy is based on contribution principle. And your contribution principle, the number one is the premium. The more capital as premium so called deposits that you put into the policy, the more you're going to contribute to the earnings of the insurance company. Hence insurance company is going to Reward you with higher dividends. So it's all based on contribution principle. Dividends structured properly is tax free. So on a corporate owned policy, cash value growth is tax free. Death benefit period is tax free. Dividends structured properly, which is always how we structured it. It's going to be tax free. You guys okay with tax free? Say yes or put in Y for yes. If anybody has an issue with tax free, please let me know. All right, good.

Now let's dive into a case study. Now meet Robin and Seema. Now when they met with us, they had three main objectives that they want to get accomplished as business owner. Three main financial objectives. They had some minor financial goals too, some short term goals. But I'm going to talk about three main financial objectives that they had. Number one was they wanted to be able to finance all the big ticket items as it related to the business. That was their number one goal. And some of the big ticket items, I'm listing those on the screen so you can see the corporate expenses. So think about your corporate expenses. Is that a high percentage of your revenue? And if it is, which, which I know it is. Are you okay having that money come back to your system versus having that money leave your system? Right. Think about that now. So big ticket items, corporate expenses are always there. They also wanted to capitalize on investment opportunities, if any investment opportunities, more business acquisitions, some real estate, whatever they want to do from investment standpoint. They would wanted to be able to access capital to capitalize on investment opportunities and they wanted to create an emergency fund in case something happens. They're able to just access money and business can still keep on running with no issues at all. Now the other biggest concern for every business owner that, that we have met is insuring retirement. You must have heard retirement. I'm talking about insuring retirement. So business owners, if I may ask everybody to just share in the chat here, what is your present insured retirement plan.

Or do you have one? Say why if you have one or n if you don't have one? Our blower getting a lot of no's. Yeah, that's the biggest concern for any business owner because there's no defined contribution plan that someone is putting aside for them. They have to create their own in short retirement program.

Now the last thing is they want to do things tax efficiently and they also wanted to create estate protection. God forbid something happened to either one of them because they have a young family. So these were the three major goals. Now they're consultants, so they have a service based business. The total annual Revenue for the businesses, $750,000. And they've been pretty consistent having this revenue over the last 30 years. Now when you look at what they take out as a owner's compensation, which is the salary and salaries of some of the team members that they have in the business, the operating expenses, their taxes, if you, if you add up all that, it amounts to about $650,000. So out of $750,000, about 650k is used to, to support the business, taxes, people that are dependent on business, etc. Now the difference between 750 and 650 is $100,000. This is what is retained in the business every year. Now that money now is being retained by a commercial bank. So the question is, who is retaining the money? As I asked this question earlier, when you look at those retained earnings statements in your business, who's truly retaining it? Is it your banking system or someone else's banking system? Right. So, so is it their corporation banking system retaining it or someone else's banking system? Now the objective is to move as much as capital as possible from the retained earnings to start their own banking system so that we can achieve those desired financial outcomes. As you saw now between Robin and Seema, Robin is more active in the business, Seema is more in the administrative position. So Robin needed more death benefit. Hence we allocated from that 100k return that they have 100k retained earnings that they have every year. $50,000 of that as premium for Robin and $20,000 per year as premium for, for CEMA. And obviously premium when premium goes into policies, it creates death benefits. You'll see the death benefit. Now the way the policy structured is so combined premium that the business is paying on a corporate owned policy, Robin and CEMA respectively of life insured corporation is on the policy. The total premium is $70,000. So 50 plus 20 is 70k. But the way the policy structured is there is flexibility in the policy premium. Only 26,000 of that 70,000 is so called the required premium. The difference between 70,000 and 26,000 is optional. It is not required. But that optional is required to capitalize the system, to capitalize the banking system. So in case, you know, life happens, because life will happen, then they have the ability to reduce the premium if they wanted to. But they can also bring it back to $70,000 when they're ready to do so. So that's how the policy designed is this.

Flexibility built in from day one. Now starting death benefits, remember for Robin the premium is 50k per year and for SEMA, the premium is 20k per year. So starting death benefit and Robin is $900,000 and starting death benefit on SEMA is $400,000. But again, these are corporate owned policies. So God forbid something was to happen. The death benefit is paid into the corporation and it's extracted out of the corporation. And I'll show you visual on that now. So they have an operating company, as you can see right here. So they have an operating company and they have revenues coming in by selling mostly the services. They have hardly any goods that they sell, mostly services. Now the way the business is structured is so Robin and Seema, they're both directors of the operating company. They don't own the operating company. So because they're directors of the operating company, the operating company can pay them a salary for the time that are putting in to grow the business. But operating company cannot pay them dividends because they don't own the operating company. The operating company is actually owned by their holding company. So there's a holding company on top which owns 100% of the operating company. And then money's revenues come into the operating company and then they pay themselves salary. And the business that is producing the revenue is the operating company. And then Robin has 100% of Class A shares of the holding company and his wife Seema has 100% of Class D shares of the holding company. So if they want to extract any additional money outside their, their income that they're getting from the operating company, they can extract that as, as dividends from the holding company. Holding company can pay the dividends. Operating company cannot pay dividends at the end of the year. So, so actually let's, let's follow the cash flow so revenue comes into the operating company. I'm gonna just try to use a laser pointer. So can you see the laser pointer?

Yeah, it's, it's good. Perfect. So, so revenue is coming into the operating company. Operating company has expenses associated with running the business. Operating company also pays them both salaries. So you can see that. And at the end of the year, whatever is retained in the operating company, that 100k that I showed you, all that money is actually post tax free as a tax free dividend transfer into the holding company. So that end of the year retained earnings is tax free transferred in the holding company. So that money is now held at the holding company that there's no money sitting in the operating company. So legally all that money at the end of the year is inside their holding company.

Now holding company. Because Robin and Sema the only holding company. So holding company has a beneficial interest in Robin and SEMA because the corporation is not going to work if the shareholders die. Shareholders are the one who, who have the vision, who are actually putting all the effort in for, for the holding company to at the end of the year have some retained profits saved up so the holding company can own a policy in Robin and Sema. So the policy that I talked about, the 50k in premium on Robin, it it's owned by his holding company and the 20K premium in SEMA, that's also owned by the holding company. Now when, not if, when that occurs, life insurance company is going to pay that, that benefit tax free into the holding company. And then I'm going to presume, Rob, I'm going to, I'm going to kill Robin for this example. You know, I share this jokingly and, and one of the questions that people ask is hey, how's my spouse A little bit high risk spouse meaning husband a bit high risk. And I say, I said that jokingly say the reason why the spouse is a little bit high risk is because they work so hard to keep their wives happy.

Some of the wives don't like that. But that's ok. I just said this jokingly. All right, so I'm going to kill Robin. So when Robin dies, the death benefit is paid tax free into the holding company. And then from holding company it's extracted by SEMA tax free personally through the capital dividend account. So capital dividend account is a notional account that gets created upon the death of the shareholder and the death benefit proceeds become part of the capital dividend account and it's extracted tax free out by CEMA personally.

Now here's a question for you. Who paid the premium?

In this case the $50,000 per year, who paid the premium? Was it Robin who paid the premium personally or was it the corporation who paid the premium corporately using corporate after tax dollars, the corporation paid the premium. You're right. Now at that. Who is receiving the money tax free?

Spouse. Seema. You're right. So after tax, corporate dollars goes into policy. But that death benefit is received tax free personally. Isn't that good?

So again going back to the picture, this is how it's structured. So you can see $50,000 for Robin. Seema has $20,000 in premium. Starting death benefit on Robin is $90,000. Starting death benefit on CEMA is $400,000. Now do you like tax free?

So on a corporate owned policy, no corporate taxes are paid on daily cash value growth On a corporate owned policy, the dividends structured properly, that's how we do it. There's no tax that the corporation has to pay on the dividend. The policy is not an investment, hence it is shielded from passive income tax rules. Does anybody know what the tax is on passive income.

Share in the chat box, if you know what the tax and passive income and how much it is? 50%. John, you're absolutely right. Passive income taxes are 50%. So the policy is shielded from that because the policy is not an investment. Now the death benefit is also paid tax with the corporation as I just described. So if you like tax free, you're going to love the process of becoming a banker. Now here's the policy design and I'm showing everything cumulatively. Just to keep things really simple. I'm showing everything cumulatively. So you're going to see cumulative premiums, cumulative dividends, cumulative cash values, cumulative death benefit. So the first column is the year and the age. So they both same age. I'm just using this in this as an example just to keep it really simple. They're both same age. Now cash premiums as you can see is 70,000 per year. Now does a cash premium ever go up?

As you can see, the cash premiums will never go up. Now can the premium go down? And if you're thinking yes, the answer is yes, the premium can go down. And the only person or the only individual at the entity that can reduce the premium in this case is the corporation. And the shareholder on behalf of the corporation can make that decision. The premium can never go up or the premium can go down. And insurance companies can force you to reduce the premium. They just can't. Now because it's a participating dividend paying whole life policy.

These two policies are participating in indivisible profits. And you can see the dividends. Now do you see the dividends going up? The answer is yes, that's how we structured the policies.

Now do you see the cash values also increasing in the policy? Every single year the cash flow is increasing. Now the last column is death benefit. What is happening in death benefit as time goes by? Because time is going to go by anyways. So as time goes by, dividends increase. Now who is responsible for dividends? Them or the insurance company?

It's the insurance company. Now who is responsible for cash value accumulation and growth? Them or the insurance company? The insurance company. Now who is responsible for the death benefit? Them or the insurance company? Is the insurance company. The three things that the insurance company is responsible for. Three things. These Columns increased. The only thing that they're responsible for because it's their behavior of deciding how much to put in and for how long to put in that stays the same. That's a great exchange for responsibilities. And the reason why the cash value is increasing is because cash values must match the death benefit by age 100. So if I, if this table, if this was visible to you all the way to age 100, you will see the cash value will be the same as death benefit. Now I'm going to pick very specific year. So year three. Now they are 42. When they started the policy. Three years from today, there are 45. Now here's a fact of life time in this case, three years will go by no matter what. There's no arguing that. And they will be 45. And the question is, and you can help me answer this question, the question is, are they better off being 45 with the policy or without the policy? Because remember, your corporate retained money must sit somewhere. It can sit in a bank, it can sit under a mattress, it can sit in your wallet, you can store it behind your toilet tank. Those are all warehouses of money. This is also warehouse of money. So year three comes along, they're 45, they put 70k as premium. How much did the cash value increase from year two to year three? The growth in cash value from year two to year three is 74,006. 32. So if you think of this like a corporate bank checking account where three years from today they deposit $70,000 and the corporate bank checking account says, well, at the end of the year, Mr. Business Owner, you can spend 74,632.

How excited do you think they're going to be next year to put the $70,000 in? And if this is you, how excited are you going to be to put that $70,000 in where the account allows you to spend $74,000 just in growth for that very year. And here's another question. How much tax did the business actually paid on the growth?

Are you okay putting $70,000 into system like this where you get to access more than what you're putting in so that you can put more of that in more of that money to work to grow the business even more because the other alternate is not to do anything. And year 3 just put 70k in a bank account and all you can spend is $70,000.

So that's year three. And I randomly picked up another year, year six, the day 48. Now they put another $70,000. You can see the growth from year five to year six is 87,002, 76. And I selected another year randomly. Let's just say in this case year nine, they put another $70,000. And growth from year eight to year nine is $106,000. Do you see what's happening inside the system?

That's called compounding. And let me ask you all this question. I'm going to stop the screen here. How much risk does the business owner have to make sure that the cash values keep increasing all day long?

I'm getting a lot of zeros. But if they didn't do this and they ended up using retained earnings for the purpose of investing into something else, not saying investing is good or bad, but would they be taking a lot more risk to achieve the desired outcome as compared to what the policy is going to do for them? And so far I'm just talking about the product itself, the attributes of the product. I haven't even talked about the process of becoming a banker as it relates to their goals.

So let's go back to the financial goals. So number one goal that they had was financing big ticket items, right? So operating expenses is a big ticket item. Let's, let's talk about that. So year five, intentionally capitalizing the system. Remember I said premium has to be intentional. So they're intentionally capitalizing the system because they could have capitalized the $70,000 per year someone else's bank, they could have put all that money in someone else's bank. They just chose to think differently and then chose to put that money into this entity because they understand the money has to sit somewhere. And this is a better place to warehouse money because of the outcome that you just saw from compounding standpoint, uninterrupted compounding for Life. Now year five comes along, their cash values are 357,402 and that benefit is almost $2.1 million. Now, if they need to finance their complete operating expenses now here's how much they are spending on operating expenses. Now they have about $750,000 per year as revenue. They're paying themselves as income about $280,000 to $750,000 minus 280 is $470,000. And by year five, they're able to almost finance all of a majority of their operating expenses, as you can see on your screen. Now, if they need access to money for anything, there's two ways for them to access money. And both way is not going to object. Number one method is they can make a surrender of the Death benefit so that they can withdraw their cash values. Now, if they access money via method called withdraw of cash values, they will still be able to access money and use that money to put to work for whatever they want to use the money for. But then what will happen to the future growth of their banking system, which is this policy? Will that growth continue or will that growth stop? So anybody in favor of continue say yes, and all in favor of stop say no. And just put that in chat box, please.

We're going to make this very attractive. So, so if they withdraw that money at year five to do whatever they need to do, will that growth stop or will it continue?

Yeah, Tanner, you're right. Absolutely right. So no different than if you withdraw money from your bank account, your account balance goes down. Same thing will happen in a system like this. If you withdraw money, money will stop to grow. If they withdraw357,000 in year five, they're back to year one, technically. Now, that's one way to access it. And that's not the way that we encourage. We don't encourage anybody to withdraw money. Because if you believe in compounding, when do you want your money to stop compounding? The answer is never. You always want money to compound. So the way that they can access money, the second method is via policy loans. So at year five, if they need access to capital, they can borrow 90% of the cash value as a policy loan. So 90% of 357,402 is 322,661. And that's a lot of money to finance all the major expenses that the corporation has. And when you access money as a loan, in this case a policy loan, it doesn't interrupt the growth of the cash value because you're borrowing against it. The policy loan is not their money that they're accessing. The policy loan is insurance company's money, which insurance company is willing to lend them against their cash value. So all the money is inside the policy, still compounding and growing uninterrupted. So policy loan is 322,661. And for accessing policy loan, it's a single page document. In fact, nowadays there's not even a document. You just click on request alone in your portal and money will be electronically deposited in your bank account. The only thing that you have to let them know is if you want money electronically deposited in your bank account or you want the money as a check. Those are the only two questions that the insurance company asks. So if they request all this money as a loan, their cash value will be used as collateral, meaning they won't be able to access 322,661 of their cash values until they repay the loan. But all the cash value is still inside the policy, growing every single day. And insurance company will put a lien on the death benefit for the loan. So in case that occurs, then they'll deduct the outstanding loan from the death benefit and the remaining is paid into the corporation tax free. So when they request that loan, money shows up and there is no lean on that money, there is lien on their future debt self for that loan.

Now outstanding policy loans do not impact daily cash value growth because we're borrowing against it. But you got to be careful. They are companies out there where if you take policy loans it may impact your future dividends. And we don't work with those companies.

Now the outstanding policy loans doesn't reduce the death benefit. There's just a lien on the death benefit for a loan. It doesn't negatively impact your future dividends. It doesn't show up on any credit report of any kind that there is a loan inside a business. It's private between your business and insurance company. And at that any outstanding loans gets deducted from death benefit. So insurance companies do not even dictate terms on paying back the policy loan. That is all controlled by the policy owner. So now the policy owner becomes the banker, so the first character in the financial play. So there is a play that's happening here. Most people are not even aware of it. The four characters in the financial play are the depositor, the borrower, the banker and the bank owner. So the policy owner is a depositor because they deposit money as premium into the insurance company. Now they are the borrower because they're requesting policy loans to finance their operating expenses. But they're also the banker, which means they control the repayment terms of the policy loan. And they're also going to be the bank owner, which I'm going to explain in a bit. Because policy loans is not free money. It's a loan from the insurance company. And purpose behind insurance company. Insurance company is a business and purpose behind any business is to produce a profit. But insurance company mandate is to produce profit for policy owners. So they're charged interest on the loan. You're going to see that in a bit. So when policy owners actually pays back principal and interested insurance company, that interest is profit for the business that they co own. And when business becomes profitable, they get Dividends. Hence, the policy owner also becomes a bank owner. So depositor, borrower, banker, and bank owner. When you are all four characters in the financial play, you will definitely create a financial tailwind.

All right, so going back to that example, so we take a policy loan at year five for $322,661, which is insurance company's money, not their money. Current policy loan interest rates are 6.5%. So although the interest is charged on daily basis, so basically 322,661 multiplied by 6.5% divided by 365. So the interest is calculated on a daily basis. A simple interest. But let's assume in this example that the interest was actually outstanding for a full year, meaning they borrowed the money and they didn't pay anything back to the insurance. The principal on interest for the full year. So the interest outstanding at the end of the year is 20,980. Now here's what happens in the policy. The cash value growth from year 5 to year 6. So between year 5 and year 6, the cash value growth is 84,002, 76. So let's just isolate the loan itself. So they took out a policy loan for 322,000. Interest is 20,980 for the year, but the growth is 84,276. And you must, and as you have heard me saying, the whole idea of creating a financial tailwind, having sitting on that escalator that's going to push you ahead no matter what is, is by creating a financial tailwind when you recapture the interest. So you can see in this scenario, they're recapturing the interest. They're outgrowing what the cost of interest is in the growth of the policy.

So today you have to make that transaction. Are you okay making the transaction or the interest is 20,980 and the growth is 84,276. So type in Y for yes and then no. I don't want to do this. This is just too much for me. And I don't want to pay interest because I don't pay interest.

Sorry, Blue, just a lot of yeses in the chat. Absolutely. I've asked this question so many times and I haven't had one guy say, no, this doesn't make sense. So thank you for participating. So interest recapture, that's actual tailwind. So if you recall my first, my first, in my first few slides, I talk about a, a ladder or in this case, an escalator that we can Build for a business where if, even if you stand on the business, you'll still make progress. Well, the only way to do that is, is on the things that you finance. You actually create a financial tailwind. But now if you actually start making physical progress on that escalator, you will make, you will go even quicker. Right? Right. Now have the interest in the things you finance work for you versus against you. Or in other words, become a banker and have the banking function vote for you versus against you. Now, here's an important question. I'm going to ask this question, then I'm going to stop the screen sharing because I want to be right and center seeing everybody's responses. Why will it be important to pay back policy loans? So why should the shareholder or the business owner payback policy loans? So just share in a chat box why you think they should be paying back policy loans? Why?

And if you're in the YouTube, you can just put that in the comment section of YouTube. So why should, why do you think the business owner should be paying back policy loans? So Jeanette says you're paying back into the system that you own. That's right. Right. Roman says so that they can reuse the money again. Kurt, so you can reuse the money again. Don't see the P's, Leon, Robin says to keep using money over and over again. Absolutely. Calvin. Using the money, revolving funds. Matthew. Don't see the P's.

Michael, to exponentially grow policy.

Ryan, you a shareholder in the business. You got it it. Awesome. Well, thank you for participating, guys. That's it.

You know, in time to come. Do you think we're gonna need a lot more capital than what we actually imagine? Do you? So here's another question. Do you truly know how much more capital do you need in your business? As time goes by in the next 5, 10, 15, 20 years, how much more capital do you need? And I have this, I've asked this question many times and not one business owner has come back to say, I need $1.1 million and this much in pennies over my lifetime. And if I get that, I am set for life, they couldn't give me, nobody could give me a definitive answer. Because we don't know. We don't know what's, what's, what's coming. But what we know is we do need a lot of capital going forward. We have a high need for use of capital. So if we just keep taking the money from a system and we keep exploiting it, meaning we just keep taking the money, but we're not being an honest banker and replenishing the money, certainly not going to have money left going forward. Right? And that's upon us because that's our behavior. Insurance companies cannot force us to pay back the policy loan. So becoming your own banker is actually you truly becoming your own banker. You are in the driver's seat from day one.

Now the objective of any business is to do what is not just to earn profit but it's to stay profitable. Again think about it. The objective of any business is not just to run profit but it's actually to stay profitable. So if you, if they just keep taking policy loans all the time and they don't replenish the money back then they are not going to meet their company vision which is to be profitable no matter what. Right? So replenish the money on your terms so that money is back on the shelf to be reused again. And then it's policy owners behavior who's going to create a positive impact. Because the process of banking is controlled by them. Remember they are the four characters. They decide how much to deposit, they decide how much to borrow. They're the banker, they decide how to repay the loan back. And then when they repay the loan back the interest that they're going to pay to the insurance company is going to be more profit for the business that they co own which means more divisible dividends for everybody else. We're all in this game together. There's nobody that insurance company has to share their profit with with. But the interest that you pay into the banks, how much dividends are you getting from it?

So here's the objective to insuring retirement. That's the, that's another objective they had which is one of the most important ones. Now let's assume so they're 42 when they started the banking system. And for this example let's assume that they pay premium till age 65 and after that they stop putting the premium in. Now combined cash values between two policies at that time is $2.8 million. On day one when they had first started the policy, meaning they put that first $70,000 as premium. They had about 45,000 in cash value on day one. But in at age 65 the cash value has increased to $2.8 million. Now combined that benefit at that time is $5.5 million. The starting death benefit between two policies was about 1.3 million. So you can see the cash value has increased significantly. So has the debt benefit because the cash value is changing. The death benefit the more Death benefit we bought in the policy. That's the reason why the cash value has accumulated to them to that amount. Now, premium paid up until this point is $1.6 million. So did they do okay setting aside monies as premium from age 42 all the way to late 65 to to set aside money for the purpose of creating a insured return government? Did they do okay?

Yes, obviously they did okay. Now did they ever lose control over the money from age 42 till age 65.

While they were achieving their goal of setting aside money for passive income, did they ever lose control over their money? They never lost control of the money because all the cash value which was accumulated, they could readily access capital as a policy loan. So they never lost access to capital capital. So which other financial instrument can help them achieve this outcome where they can still set aside money for future retirement at no risk? And at any time from now to retirement, if they need access to capital, they can actually borrow against it without qualifying and still put the money to work while the capital in the policy or in the system still continues to grow. Which other financial vehicle will allow them to do that?

If you know of an alternate, please share.

Now how much risk did the shareholder take to ensure that the cash flow is keep increasing? And everybody answered, literally no risk. You're absolutely right. Now let's compare and contrast because see, everything that we do financially is a measure against how someone else is doing. And that's when we make a decision if, if we should go with option A or option B because we get to compare which one works in our favor. Right. Now we looked at what the policy did. Now let's look at an alternate investment. So rather than setting aside those monies as premium inside a policy and do all the great things that we've talked about so far, let's say if all the objective was to set money aside for future passive income, what would an alternate investment would look like which would match what the policy did?

So total premium from age 42 to age 65 is 1.6 million. So let's say they put in $70,000 every year from age 42 to age 65 in an alternate investment. Now policy cash value. Does anybody remember how much it was at age 65?

Let's see.

Can you put in the chat? Anyone remember 2.8 million? That's right.

Right.

So to match for this alternate investment, to match what the policy did, the alternate investment had to earn them 9% per year.

Every single year from age 42 to age 65, because alternate investments are subjected to passive income taxes. Now, here's a very important question. How much risk will the policy owner have to take to ensure that they actually start? They earn 9% every year without a miss from age 42 to late 65, keeping into mind all the recession and depressions that we've just experienced in the last 10 years.

Is that high probability? Is it low probability?

All right, again, everything begins with how we think, right? So, and the alternate investment will have to earn them 9% per year. And then if death occurs, how much is the death benefit in the alternate investment policy had about $5.5 million in death benefit in addition to 2.8 million in cash value. How much is a death benefit in alternate investment?

Just the value of the account. That's basically it. And how much of the death benefit? So how much of that amount in the investment, if they die, is actually taxable to the heirs or the estate? Because to get that money out, well, guess what, there's going to be tax that's going to be triggered again.

So corporate policies. So we talk about retirement now because one of the goals is to get money for retirement. Now when it comes to retirement, I'm going to just stop the screen sharing here. The objective is to just enjoy life. You know, just live off what they've worked so hard to create. So they're not practicing the process of becoming a banker at retirement. All they want to do is just take the money out every year from age 65. And I'm going to assume that the lifter projected mortality, which is age 90. So they're not practicing banking, which is, which is, they're not taking loans and replenishing the money back. They're just taking money out and, and having a really good time. Now, for this particular thing, for this particular strategy at retirement, I'm just going to pivot a bit and I'm going to explain why I'm doing it this way. And the biggest reason is to take advantage of tax rules as it applies to the corporation. So at retirement, so at age 65, they can pledge their policies also as collateral with a commercial bank. And commercial bank actually loves this policy as collateral more than what they love have real estate as collateral, because commercial banks do 90%. Some banks can do even 100. But let's just use 90 just to be on a conservative side, because commercial banks lend up to 90% on cash values. But if you have a real estate property which is own free and clear the loan to value by collateralizing the real estate with a bank is certainly not 90% right now when it comes to retirement. In this example I'm going to show you very specific strategy just to take advantage of current tax rules. So corporate policies are pledged as collateral with a bank. In exchange for that, bank gives us a secured line of credit against the cash values. Now as cash values go up, because cash values will keep going up, the access to capital as a line of credit will also increase. Now so they're gonna, so the corporation is going to initiate loans from the bank. So loans will come from the bank into the corporation and from the corporation. The shareholders at retirement are going to extract money as either dividend income. Obviously dividend income at that time will make sense, not T4 income. So dividend income, or if they have sharedholder loans that the corporation still owes them, they can also extract the money out tax free as a shareholder loan repayment. So that's what's going to happen. Now for the bank.

The loss in this case is negligible because the cash value is the collateral and cash value is real capital is growing on daily basis. Plus there's that benefit in the policy. So in case that occurs, which it will occur, any outstanding loans and interest that the corporation knows the bank on, the policies will get eliminated using death benefit. Now key points to just keep in mind as I go through this example that they have chosen in this case to capitalize the interest on on the bank loans, they're not paying the bank back any interest, but bank will get paid at that on principal and interest from the death benefit. Now his retirement income. So using what I've just shared with you in terms of just the graph and flow of money, here's what retirement income looks like for both of them. So from age 65 to age 90, shared holder initiates annual loans. So from the bank $130,000 goes tax free into the corporation. And they're doing this purposely because they want to make sure that the money lasts till age 90. So they just, just back, they engineered backwards and said, okay, I want my cash value to last all the way to age 90. Then how much should I extract every year as a loan from the bank to make sure it actually happens. And the reverse engineering math is $130,000. So they're going to initiate loans every year, $130,000. And that money is going to come tax free into the corporation. And from the corporation they're just going to pay themselves. If there's any shareholder loans that the corporation owes them, they'll extract the money tax free a Shareholder loan. But the other way that the money is going to come out as just is div. Income. So the net payout to the shareholder is 75,500 and that happens from age 65 all the way to age 90. So the years of income is 25 years from age 65 to age 90. So the total money that they're able to spend at retirement is 75,500 multiple 25 years. That's $1.9 million. So the, the premiums were 1.6 million. They're able to generate $1.9 million in.

Retirement income from age 65 to age 90. Now here's another question.

Did they get to use personally more dollars or more money than what corporation paid as premium? So Corporation paid in $1.6 million but they received personally $1.9 million. Are they okay with that?

That.

I wouldn't, I know I wouldn't object to that because the corporation did all the work and I benefited from it personally in this case or the shareholder. Now the objective three was a state protection. So so at age 90, let's just say the lifted age 90. So they've, they've lived off the bank money. So bank money came into the corporation from, from there they extracted money as dividends but they haven't paid anything back to the bank. So what happens when that occurs? And here's where the third objective is meant which is estate protection. Now when that occurs, two checks will come from the life insurance policy. Check number one is to pay the bank on any outstanding principal and interest that's, that's there at age 90 because remember they're just taking loans. They weren't paying anything back to the bank. And then check number two, whatever is remaining after that will go into the corporation tax free. And from the corporation that money is extracted tax free. We have capital dividend account we have for, for their state for the years. So that's basically how the money is going to flow. Now let's look at transactionally what happens for Robin and Seema. Now assuming that they both die at age 90, total loan balance with interest was 8.1 million. So 130,000 is what they took, took out as loans into the corporation from the bank every year. And they didn't pay the bank any principal or interest over the next 25 years. So all the principal and interest balance is $8.1 million. Now total death benefit at age 90 is 10.5 million. So as you can see, two checks will come from life insurance. One check to pay the bank 8.1 million. And the remaining will show up tax free into the corporation which is 2.3 million. And that money can be extracted by the estate or is on a tax free basis. Now here is something which is awesome and that's why I'm using the bank in this scenario. Now there is something called a credit to the capital dividend account which is also received and the credit received into the capital dividend account which is the account received to extract the money out at debt. In this case the credit is actually not $2.3 million. That's just the remaining money that showed up in the corporation. The credit received is actually equal to the total death benefit at that time which is 10.5 million. So the CDA credit is 10.5 million but only 2.3 million actually showed up which means they have.

Available CDA credit of $8.2 million just sitting in the corporation. So if they have extra money outside of the policy, those extra monies can also be now extracted tax free because there is a credit limit on capital dividend account.

Are you aware of any other way to match this desired outcome? As I just walked you through with no risk.

Type in Y for yes or N for no.

And if you're not aware of, and if you weren't aware of this, it's not at all that you're not aware of this but you have an opportunity to implement it so that this will work for you exactly how we described it. And here's what you have to do next. You got to just text the word schedule to the phone number on the screen 780-809-4599 and schedule a time with one of our authorized infinite banking practitioners on our team so you can start having discussions exactly what I just walked you through. And your situation may be different. So let's go ahead and schedule the 30 minute call. And you won't, you won't regret meeting with any of our infinite banking practitioners because they're really good at what they do and they're super excited to actually serve people. They want to help people by actually helping them. And it's all validated in a Google reviews. So presently amongst different locations that we have for as an international across Canada we have more than thousand five star Google reviews. This is actually all, this is about three to four months old and in a Toronto location we have 363. In our Edmonton location we have 269. But it's, it's much more today and obviously these five star Google reviews are not there. Because we do a good job of setting a policy. A, we don't sell anything. We want to make sure it's a good fit for you and us before we proceed. But all those reviews are for the value that we're adding from strategies, from implementation, from brainstorming, from continuing coaching that we provide to all our clients.

Jason, are you there?

I'm here.

All right.

I was able to get logged on. I, I had difficulty with.

The zoom platform. Zoom. And I need some relationship counseling.

But, you know, we're figuring it out. It's good to be with you.

Great job. Thank you.

Great job.

Yeah. Well, well, let's get some feedback from the attendees. So scale of 1 to 10, we always want to do that. 10 being this was good use of the time and great value add. Or one is you should be doing something else with your time. So where are we on the scale? And we appreciate the feedback and, and please give exactly what it is.

Oh, it's all tens. Well, and you got a 1 trillion from Calvin.

All right, Calvin, I look forward to meeting you in a couple of weeks.

Well, that'll be his starting premium.

Yeah, it's really good.

Yeah. So just one of the questions that come, come up in client meetings and I would really appreciate, you know, your, your intake on it is, you know, question is, hey, like, I've been working with my accountant and my accountant never mentioned any of this.

Right. So what are your thoughts on that? Or hey, let me run this by my accountant and see what my accountant's interpretation is on, on everything that we, we learn.

Well, I, what comes up for me is that, that when I hear a prospective client say that, it's an indication that there's a trusting relationship there with that person and with their accountant, which is a great thing. I just think it's really important to emphasize.

Areas of specialization. It's really important for me to make sure that I'm communicating with the right, right resource of clarity and information. So I'm not going to go visit my dentist and ask my dentist to let me know whether or not the cardiac surgical procedure that my board certified cardiologist recommended is something that the dentist is in favor of or not. You know, it's, it's super important. And, and great accountants will, will be very proactive in sharing that with their client to say, you know what? That's not my purview. I'm not licensed or designated to provide advice in that space. Let's bring the professional into the conversation so that the accountant can also get their questions answered and make sure that they have clarity. And that's where we find the best connection and the best outcome. Because sometimes that doesn't happen where maybe the accountant might have formulated some opinion without really being designated or licensed to share any of that perspective with a client, because that can end up getting that professional into a lot of hot water.

No different than if we were to take it upon ourselves to try and provide tax advice to a prospective or an existing client. That would be way out of bounds because we're not designated to provide that. So I think it's just really important that, that for all of our business owners who are in attendance, who have great relationships with your accountants to understand that we a. We work with Chartered Accountants, CPAs on a daily basis. We have two Chartered Accountants on our team who connect directly with clients. Chartered accountants, we don't provide chartered accounting services, but we make those professionals available because we always find that, that at some point in the process, it's always good to have one chartered accountant speaking to another if there's an absence of clarity or there still needs to be some additional conversation. So that, that's really my take on it. And over the years, that.

Approach has served us extremely well. Extremely well.

Absolutely. You know, I have a client and you know, their accountants would call this proactively generous, just trying to get, you know, updated numbers on, hey, what was the cash under value on the year end and things like that. And, and those are great because we want to work as a team. Right. We're all here to serve the client. Right. So, but, you know, some, some great questions have come up and you know.

Let'S, you know, one thing, I like.

Any of our business owners in attendance in the chat window, and forgive me Sarblo, if you had asked this question earlier, but for all of our business owners in attendance, just a Y for yes or an N for no if you like having a surplus on your balance sheet.

Lots of yeses.

Always. Okay, good.

Yeah.

Now, is your preference.

For that surplus, is your preference for it to be taxable or non taxable?

That's a good one.

Yeah, it's. And now my next question is how large of a surplus do you want to create? Yeah, so it's, it's just getting very clear on exactly what that number is. This is what I want the surplus to be on the balance sheet. And we want to be as specific as possible with that number. And you said it great earlier when you talked about who's actually retaining retained earnings. It isn't the company. It isn't the business owner. It's the bank where that business has money reside.

All you got to do is change the address.

The money's got to reside somewhere. And so I'll share one more quick thing with you, Sarbo, that I think is really pertinent. So I was speaking to a business owner having this discussion about, you know, there was a terminal tax obligation. It was north of 1.1 million. And if you could borrow money today, if you could borrow money from a commercial bank today, would 9% be a decent rate.

Of interest in. In where interest rates are today, would 9% be a decent rate of interest.

All day long? So we were looking at a policy where we have $100,000 of premium that's going to go into this contract.

And thank you. Calvin made a good point. 7.2 is prime. So 9 is decent. Absolutely. I haven't met anybody who's a prime customer of the bank ever.

I'm.

I'm in my 16th year in practice, and I've served thousands. My point being is that the business owner said, well, if death occurs, God forbid, if that happened prematurely, we have a $1,100,000 terminal tax obligation. We can pay the interest.

You can pay that in installments over a maximum of 10 years.

Well, what is the interest? What is 9% of $1,100,000?

$99,000 a year.

$99,000. So I said, Mr. Business Owner John, you pay the interest, and I'll take care of the principal.

He goes.

He says, what do you mean? I said, well, you pay the interest, right? So you pay the equivalent. So he's going to put 100,000 in premium into the policy. The starting death benefit. The starting Death benefit is 2 million 767 million.

Have we more than covered the principle of that terminal tax obligation?

Oh, yeah.

Think about it. Isn't that good?

Oh, that's. That's awesome.

Yeah, man, this is good.

All right, Jason, is it okay if you dive into some questions that. Yeah, let's do that.

Yeah, let's have some fun.

I would just invite all the colleagues. Hey, guys, just show up and, you know, share some of the questions that have come up and something that we can share for the benefit of everybody else. I know. Capital dividend account. That question has come up. We can certainly answer that or expand on that. But, yeah, please go ahead and share what questions have come up.

Yeah, that's a good one to start with. Servo. We definitely got questions on the cda. People just want a little more clarity about how that works. Well, we got Henry.

Henry, is it okay if I keep calling? So you. Richard calls me a recovering engineer, so I'm going to call you recovering cpa.

Well, my pleasure. I am recovering from being a cpa. Traditional cpaca.

Was there a frame of how that question was asked?

The question was can you expand on the CD account, the capital dividend account and what that is?

Well, one of the amazing privileges of owning a Canadian controlled private corporation, a CCPC in Canada. If you're a Canadian citizen, when you own shares in a company.

What happens with a life insurance policy when a death benefit has occurred? That death benefit will go to the corporation, assuming it's set up properly. And that that will create what's called a capital dividend amount of dollars. That death benefit will transfer.

Roughly the same amount of the death benefit to that capital dividend account. And one of the privileges of being or having a CCPC for Canadian citizens is you can set up and build that pool of that death benefit amount to go to the capital dividend account which then can be set up to draw out of the company in the form of tax free capital dividends. Because normally to get money out of the corporate environment you would have to use salary where you pay income taxes, CPP and ei or maybe not. Or you can take it out in traditional taxable dividends and then when death occurs with the death benefit, a capital dividend amount will be created and that can come out of the company tax free.

Thank you, Henry.

Hopefully whosoever had asked the question, that definitely answers the question.

In the questions guys. Yeah, another one that might not hurt. Touching on servlow is you did a really good job explaining, you know, in Canada after a time you may clarily assign it, but we did get the question about if you take a 90% loan out after your cash value has grown to a great amount, is there any tax implications?

Well, we'll be taking money in that particular case, collateralize with the bank.

Right.

And.

And there's no tax consequences in that case. Yeah, if they did it from their policy, I think is what they were questioning. Yeah, so. So that's a good question. So policies in Canada have something called adjusted cost basis. Now I want to dive into the definition of adjusted cost basis, but it is, we did a. I think there's a YouTube recording and a podcast on it too. So when we surpass the adjusted cost base, anything above adjusted cost base, when we initiate a policy loan loan, it can trigger taxes. Now before I dive into expanding more on it, let's just look at it from CRA's point of view, how they see a policy loan or what truly is a policy loan. A policy loan is literally an advance on your death benefit. You're getting to stage now where you know, just a cost basis, whatever the number is now you've exceeded it and you take a policy loan and it's an advance on death benefit and you're getting more than a district cost basis and you're alive. So CRA steps in and says hey you're alive, you're getting more out and you're spending your death benefit while you're alive. Technically that anything above the adjusted cost base so we'll tax you on that. But when you pay back the policy loans which you can do that on your own terms, repayment of policy loans will replenish that so called death benefit. Then you'll also get tax credits. So ultimately it becomes a wash. Now the process of becoming a banker is not a estate tax scheme. There's legal ways to not pay taxes as I described in this case retirement, you know, collateralizing policy with a bank and for business owners at that time that's the best way to do that because to take advantage of capital dividend account because policy loans. If you take policy loans, your capital dividend account calculation changes completely. Hence I purposely showing bank loans. Now let me ask you this another simple question. And, and I need everybody's participation, all attendees. So if I today write to you a check for $50,000 payable to you money that you did nothing to earn and before you cash the check all you got to do is pay taxes on it. Is anybody on the call going to say yeah I got, I object. I'm not going to take that money because I got to pay tax on it.

If you do just endorse the check to me and I'll cash that thing all day long long.

Yeah, me too. So it's, it's all begins with how we think.

I have1 here SA it says in a corporation with the policy paid be tax tax deductible. That's a really good question to the premium on policy is not tax deductible because all the cash value growth, the dividends and death benefit, all that is tax free. So you can't deduct if there's no tax conses going forward.

Hey, we had another question. It was along the lines of, of is there a minimum amount or the business needs to be profitable in order to do this right? In order to do ibc. There's A lot of angles that you can probably take on it. But I was wondering maybe if you can kind of talk about starting a second business, like being in the banking business and the business that you're in. Yeah, so. So, you know, Nelson says, and he says there's two businesses that we need to be in. One business is the business that we spend time on to generate revenue for business owners or income, if you T4 or income owner. And the second business is banking. And between revenue, business, banking, business, the banking business is much more critical. Now, what's a good starting point? Well, I, I don't know what's a good starting point for you because we haven't met. So here's how we determine what a good starting point is. Book that call text. It would schedule to 780-809-4599. And that is something that we discussed us. And it doesn't matter where you start. You're going to feel good about starting because it's going to work. But if you just start and you don't expand, then that's on you.

Like Jason mentioned, Like what? How much you all like surplus capital? Do you want less surplus capital? You want more surplus capital? So you may start small. It's all relative, right? Small is all relative. Small compared to what you may start where you want to get started. But then as you use the policies to start to recapture some money that's leaving the business, then you will expand. 99% of our clients expand their program within the first year.

It happens all the time.

Go ahead, Roman.

We have another question. Jason and Cerblo from Tanner. Would using a policy loan for business expenses reduce taxable income for the business?

That's a really good question. If the loan proceeds are used to generate a taxable gain or taxable income, then generally speaking, Henry can clarify this. But generally speaking, that would be legitimately deductible provided that.

If you're, if you're accessing the loan and then you want to deduct, you know, the accumulating interest, for example, you cannot deduct something that hasn't legitimately been paid. And so you have to. Again, when you're talking about deduction, deductibility, making sure that those transactions are auditable, that they're tracked, that's where the expertise of your accountant comes into play to say, let's all get on the same page and make sure that this is all being, you know, journal entry. Did I say that right, Henry? Journal entry properly.

And of course, we, you know, we, we get simple Questions like that, where accountants contact us and say we're not quite sure how to journal entry, you know, the, the growth of the policy and how to take a look at this policy loan activity. And you know, we're, we're always happy to spend a few minutes with the accountant. Just bringing them up to speed on that.

Jason, Calvin put an interesting note in the chat box. He says to whoever is thinking about it, there is no charge on booking a call or even on starting a policy.

Thank you for sharing that.

And he's right. He's right. He's speaking the truth.

So let's ask everybody. Hey, who here has booked a call already to have a one on one discussion with a coach on a team?

Hey, how's going Calvin?

Francis goes in the process.

Roman's giving everyone a round of applause.

Hey, we've still got folks hanging out. What, what do they want to talk about?

Jason?

Just, just circling back to that question that Tanner asked. If I read it correctly, he said if I use a policy loan to pay for business expenses, would those expenses still be deductible? I believe that was the question. Right. And so it doesn't really matter where the money comes from if you pay an expense in the business. I'm not a tax professional, by the way, but Henry, correct me if I'm wrong. Like, if I pay an expense in my business, it doesn't really matter where the money comes from that that expense would still be deductible. Right?

That's correct. It all just depends on which source of the pool of capital you're using to pay those expenses. Do I want to use it for my family banking system where there's a growing pool of cash, or do I want to take it from interest, Sorry, my savings account or business checking account. That is a dwindling pool of cash.

Do you want to use the floating fund or the sinking fund?

That's a good one, Vern. I like that.

If the waiter try the steak, he'll be here all day.

I'll just go ahead and share this because there was a couple questions that came in just around hey, like, you know, what should my premium be? Or what's the minimum premium? Or. Or you know, those kinds of questions. And of course, Sarblo did a good job of mentioning this earlier. Like, we don't know your situation well enough to give you a good guidance on that just yet. You. You gotta book that call so we can get to know you better, make sure it's a good fit, and we can give you good guidance but ultimately, if I can comment and team, chime in if you'd like. But instead of thinking of, you know, how low the premium could be to start, Cause it sounds to me like, hey, I want to get started, maybe things are a little bit tight or whatever, what have you, rather than thinking about what I should do or how low I can start, think about what you want to do do or think about what you can do or think about how much of your money is leaving you today and how much of that capital would you want to have flow into your own private system and working for you and your family rather than, you know, flow into somebody else's system? Right. Rather than what can, what should it be? What could it be? Well, what do you want it to be? What can you do for all the.

Business owners in attendance? If, if you think it would be valuable for us to run a few sessions on how to improve the profitability of your business regardless of, of the stage of growth that your business is in right now. If you want some very specific, actionable coaching on how to do that, just, oh, okay, we got a bunch of hearts showing up. Just type Y into the chat window and we'll put that together if there's enough of a demand for it.

I would also add, if there's any particular topics that we can maybe provide in terms of value to how help enhance your business. This is where we get a lot of opportunities to coach many business owners and can share a lot of, you know, best practices or wisdom along the way. And these are topics that we definitely would love to hear.

Yeah, definitely.

Lots of wise, Jason. I gotta get the course going.

Okay, well, let's. I don't know if Moses around or if Devin's around, but if we want to get that up on the calendar, we'll put a couple of sessions together exclusively for business owners and we'll share some very tactical.

Very tactical steps that the business owner can take to drive additional margin, to drive additional, you know, profitability and net income into their business and free up more capital, you know, for the purposes of becoming your own banker, you know, at a corporate level. Absolutely happy to do that. And the business owner, the business owner should also be thinking about the key people that are in their business.

People that are vital to the day to day operation of the company. And business owners love simplicity. So I want to be in a position of total control, but I like ridiculous simplicity because I've got so many things going on inside of the business. You're dealing with people, you're dealing with process, you're dealing with sales, marketing, operations, hr, the list goes on and on. So as it relates to the accumulation of capital, you want this to be really simple. Simple. And we coach you and mentor you through that so that you get to achieve that simplicity. But you get that peace of mind knowing that you're building a surplus on the corporate balance sheet, but you're doing it without triggering any taxable events.

Then we have another question. Jason, if I may.

Yeah.

So Chris is asking, are the dividends tax other dividends? Is taxable income when paid from line of credit from the bank, is it taxable or is it not taxable? I understand it is coming from Starblow's example of taking passive income from the bank.

Oh, I think I understand your question. So when the shareholder has pledged a corporate asset, the policy as collateral.

And the bank, the bank is extending to the corporation an operating line of credit or a term loan or, or something, and then that money's coming out into the hands of the shareholder.

Yes. To the personal is a dividend. To the.

Yeah, there's. There are two different tracks to go down. One of those tracks is the money coming out in the form of a taxable dividend, which is taxable in the hands of the recipient, the shareholder. There is a process of the payment of a shareholder guarantee fee to the corporation. And that is an expanded conversation that's outside the scope of today's webinar. But that is a different track that a person can go down. There's some additional planning that needs to be done and to also make sure that, you know, all of the T's are crossed and the I's are dotted to go down that route where there would not be a taxable event triggered in the hands of the shareholder, but there would be revenue earned by the corporation in the form of a shareholder guarantee fee that the shareholder would have to pay to the corporation every year based on that accumulating loan balance. And so we can have a more personalized conversation with any business owner who wants to explore that option a little bit further as well.

Thank you, Jason.

You're welcome.

Jason, there was another pretty good question here.

Go ahead.

It was what is the difference between your life insurance and the life insurance by Manulife, both whole life insurance.

That's an excellent question. So there's a number of carriers in Canada and the United States that issue dividend paying whole life policies.

And the two types of companies of life companies that issue these policies are either stock companies or mutual companies. So a stock company Would be, in this case, Manulife would be one of many examples of a stock company. And when you're dealing with a stock company, you're dealing with shareholders and the stock company, their primary mandate is to be responsive to the stockholders of the company. Understandably so. That's how a stock company is organized. So in the case of Manulife, their primary mandate is to the stockholder, not to the policy owner. When there's a divisible surplus generated, that divisible surplus is distributed not only in part to the policy owners, but also to the stockholders. So if you look at it from this perspective, with, if you think of putting money into.

An investment that charges a fee, like a management expense ratio, you may have heard that before. Sigman mer. Have you heard that before? You can hang out with the folks on Wall street and Bay street if you use lingo like that. So the mer, if you look at it from this perspective, think about a stockholder receiving a portion of the divisible surplus generated by the stock company. So now there's two people lining up at the buffet. Okay. Make sense so far?

Yep.

Now if you were to add that up over a theoretical 100 year lifespan, is the stockholder getting just a little bit of money or a lot of money?

Stockholders getting a lot of money money.

Is the policy owner getting a little bit or a lot of money?

A little bit.

A lot. They're both getting a lot. Agreed.

Got it. Got it. Yes. Yes. Okay.

When you're dealing with a mutual company, there's no stockholder there. The mutual company is solely responsive to the participating policy owners. Take that out over a 100 year theoretical lifespan.

Yeah.

So who, who, who would you rather have a 100 year relationship with?

With the mutual company? Because they have my interest at, at heart. That's it.

Not only that, just take out a calculator.

Yeah.

Of the portion of that surplus because not 100% of it gets distributed. Even in a mutual company, a portion of it gets set aside as continuing capital surplus.

They're a business, they want a surplus capital. You get it?

Yes, I do. Okay.

So they set aside an ongoing surplus. Where does that come from? Net income.

Right.

And premium. A portion of it.

The part of that surplus that is distributed is distributed solely to the participating policy owners. So when you hear these, you know, financial entertainers out there who talk about, hey, do you realize.

That if you have money in this mutual fund and you're paying Even just a 2% MER fee every year over the course of the next Few decades, you can wipe out more than 30% of your wealth just in fees.

And that same financial entertainer.

Isn'T telling you.

The similarities of what's going on in a stock company that issues participating whole life insurance contracts.

Think about that. Over the course of a theoretical 100 year life span, that is an enormous sum of money. Money.

That the participating policy owners will never see.

Right.

And it doesn't mean that a stock company is bad. That's not the distinction. Is this good or bad? The distinction is what characteristics do each one of these companies have and which resonates best with me. Nelson always said all the time, once you understand what's going on, you'll know exactly what to do.

Isn't that good?

Great.

So is there anything stupid about doing business with a stock company? Absolutely not. But you need to understand what's going on so that you can make the best decision about what you want to do. I know who I want to be in a hundred year relationship with and it's not a stock company.

Got it.

Jason, if I may share a question that came up earlier. And this was to do with, you know, some businesses obviously sit on a pot of cash, right. So the cash flows are not kind of regular for everyone. So the question was to do with, could we upload a policy, you know, with bulk care payments in the initial years and then kind of taper down to normal levels down the line? So if you could just touch upon that. Yeah.

The short answer is that a policy is designed for maximum flexibility. So in any given situation, we want to maximize that flexibility for the policy owner. So if the policy owner says, look, I want to have the ability.

So going back to John, the fellow I was mentioning earlier year, his premiums are 100,000. That's the amount that he has the contractual authority to deposit in any given year. He's only contractually obligated to deposit 23,000. So does that give him a lot of flexibility?

So he could, he could say, look, you know, I'm planning to deposit 100,000 in premium for the first, first 12, 13 years of the contract and then in from the 14th year onward, I might only be depositing 35,000 a year.

Yep.

Hey, you know what, that's your privilege. You have the possess the contractual authority to do that. And so it's very, we, we often use the analogy about a fingerprint. Everyone's fingerprint is unique. And so that's why it's important for us to meet, have that personalized conversation to say, let's, let's build something to last first and foremost. And the premium has to check off two boxes. It's got to be comfortable and it's got to be affordable. If it checks off both of those boxes, you're on the right track. If it doesn't, you've got to retool. You've got to go back and say, okay, which one didn't quite get the check mark? Comfort. I can afford a hundred thousand a year, but it's not quite comfortable for me. Okay, lever it down. Where is it comfortable? And then understand that this is not meant to be accomplished through the device of a single policy.

It's meant to be achieved through the device of a system of policies. And that system gets built over the course of, of time. And that's what we try to communicate.

And, and get across so that people recognize, hey, I don't have to get all of this accomplished in one policy.

That's not the way that Nelson intended this to, to be built out over a period of time. It's meant to be done gradually and incrementally.

Isn't that good?

Absolutely. Thank you.

Surely there's got to be more.

Sarblo said, don't call me Shirley. I didn't mean that for you. So I just meant in general.

We did get the question, Jason, about the 56 year old and whether, you know, if you started then if you're, your policy should be to age 100. I think that's a good question for people to understand.

That's a very good question for people to understand. I always want a system that can accommodate my capital.

And far too often because of again, all of the language and the noise that's out there.

There are very specific uses for predefined time frames of the payment of premium. So if you're just talking about putting a policy in place not for the purposes of implementing the process, but just for the purposes of having coverage, doing a 10 pay policy, doing a policy that can offset as early as possible so that no future premium payments are required.

That serves a purpose. It serves a purpose to achieve an objective. But if you're getting into the banking business, so you're cranking up a business that never existed before, do you want to apply a time frame where that business can no longer receive your capital?

I don't.

Not you. But I'm saying.

If a person thought about it logically to say, okay, I'm gonna, I'm gonna crank up this new business where no business existed before and I want to be able to stop capitalizing that business.

Insert the time frame ten years from now, five years from now, six years from now.

Really.

When. When our prospective clients really understand what's going on, their question for us is not how soon stop paying the premium, it's how long can I pay it for? And unfortunately we can't go any Farther past age 100, unfortunately.

Then they move into can I put more? How can I put more in?

Right, exactly.

And a good point in the chat window. Insurance companies are strong pillars of any economy. Not sure I've heard of an insurance company failing yet. Leon, that's actually a really good point. If you go back just to the most recent of financial crises, not a single life insurance company failed. They're the most financially solvent institutions on the planet. And that's not because.

Of coincidence or luck. It's an engineered outcome. And so if you understand that your money, your capital, it must reside somewhere, there are no exceptions, then what better place to have it reside than here? We talk all the time where we ask if we can tap into logic. Can we tap into each other's logic for a moment? Everyone that we can see on the screen? So let's tap into our logic. If I can become a co owner of a company that's never failed to produce a divisible profit if I'm already a business owner, you've got my undivided attention, okay? I can become a co owner of a company that's never failed to produce a divisible profit. Is that correct? Yes. My ticket to co ownership is premium. And the more premium I put in, the more capital I get out. I'm doing all of this on a tax free basis. I get daily cash value accumulation that can't go backward. Do I like a surplus on my corporate balance sheet that can't go backward? Yes. How big do I want it to be? Do I enjoy receiving dividends that once declared, are contractually guaranteed to be paid? They can't be repossessed and they can't lose value ever. Am I ever going to dislike that?

Do I enjoy the contractual authority of having ready access capital on demand on my terms.

Where each time I gain access to capital, I'm not reducing any of the value of the asset that collateralizes the money I'm getting thing.

So here's the logical question. How much of my capital do I not want residing there?

Zero.

That's the logical response.

And so it's not about how does this compare to insert whatever product you want here year.

It has nothing to do with comparison. It's a Warehouse.

And from that warehouse you can go and do all the other things that you were comparing this to.

Go put your money into all that other stuff if that's what you want to do. Our clients net worth goes up every single day like clockwork.

And clients never call us frustrated about the. That shocker.

Isn't that good.

Today's lesson in logic brought to you by our sponsors at Ascendant Financial, the gold standard in educating North Americans on the process of becoming your own banker. The infinite banking concept. That's actually a pretty good. We gotta get the. Probably record that with a little bit of music and stuff behind it.

Oh, the Googles. Did somebody just put the Googles in the. In the chat window?

Yeah, we got some Google links in there. Oh, good.

Yeah, for everybody who got as much value out of Sarblo's talk as I did, if you'd be kind enough just to click on the Google link that's closest to your geographic location. If there isn't a link closest to your geographic location, then just choose one and when you get there, give us a rating. Give us a rating and share maybe in a sentence or two something about your experience here with Sarblo today, who I just sat here.

Smiling with pride, ear to ear, listening and watching Sarblo do such a great job. So if you felt like you took away some value from today, we would just be so grateful if you took a moment. Because I'll tell you, we get connected to people all the time where we ask them, what was the tipping point? Why did you connect with us now? We've been binging your content. We've read dozens of these Google reviews. So you have no idea how impactful your review could be. That could be the tipping point. Point for somebody to make that connection with us. And so we would be incredibly grateful if you took a moment to leave us a review in exchange for the value that Sarblo provided to you here today.

See, good. Like somebody just typed into the chat window. So much value from all your online content. Thank you so much for sharing. Wish I knew all of this sooner.

It's definitely way more coming, so stay good.

The good news is, is that you can't say that later on. Yeah, because you're here today. Because we hear that all the time. Oh, I wish I would have known about this five years ago. I wish I would have known about this 10 years ago. Well, you can't say that 10 years from now. You're here today. The only thing getting in the way of you having a different outcome 10 years from now is taking the action of creating a time to, to meet with the right person on our team.

And all it requires is an investment. Not of your money, of your time.

So respecting the use of your time.

Book that call. You'll be glad you did. And if you don't get any value from it, just get a hold of Sarblo and he'll donate a million dollars to a charity of your choice and he'll use a policy loan to do it.

It.

I, I'll use policy loans to buy bitcoin and hopefully bitcoins will be able to take care of all that.

All right, well, good. Hey, we still have 38 people.

Listening to us jam. This is great.

Can I share a story, Jason, that I from today?

Yeah, please do.

So I took a drive at lunchtime time and there's one place in the city I live in where somebody puts up, you know, thought provoking thoughts. Every day they change it. And so when I went by that place today, it said, you know what to do, so just do it. And so, you know, because of that, I know what I wanted to do today and I started the action already and just working on, on, on adding some policies to my system on my grandsons because I knew what to do.

I love that. You want to hear another thought provoking question?

Sure.

Okay. Have you ever seen. There's two questions here and this for everybody who's still with us.

Have you ever seen. And just type a Y for yes or an N for no in the chat window. Window. Have you ever seen a fruit tree?

Yes, we have.

What is the last thing to grow on a fruit tree?

Root. Oh.

Think about it.

Just think about it as it relates to everything you heard today day.

A lot of people want the fruit without the tree.

I love it. It's good, it's.

And for anybody. I shared this just earlier today I was having a conversation with a gentleman from Tampa and we were talking about the family and the importance of the family banking system. And I said, you know, the one thing that I would share with folks is that for people who.

Decide not to plant the tree today because they're not the ones that are going to benefit from the shade have missed the point entirely.

And he just said to me, brother, that was so profound.

Let's get those policies going.

Can you share what you shared with me regarding when you were interviewed on hey, why do you drive in Nissan? Why not a Bentley? That was awesome responses and you got to share that today.

I can't remember what I. What I was that. Were we talking about that in Calgary?

Well, yeah, we talked about that a few times.

Okay, well, you share and I'll.

I'll.

I'll add to it. Share it from your perspective.

So we have a choice, right? Choices are choices. They're not good or bad, but the outcome can be bothersome. So if you buy a Nissan, you don't have to work for it.

But.

If you buy a Bentley, then to keep the Bentley, you gotta work to keep the Bentley.

That's right. Think about that.

Nobody cares about your Rolls Royce. Yeah, Nobody. I am perfectly comfortable in my Nissan Altima.

I know that when I wake up tomorrow morning, if I was just being lazy bones and I didn't want to get to work, which, like, you'd have a better chance of getting hit by lightning than catching me in that condition. I know I don't have to go to work for that car.

But if I'm wanting to drive around looking like I'm all that in a bag of chips in that beautiful Rolls Royce of mine that probably cost $9,000 just for an oil change, like, who cares about that stuff? But hey, if that's all the power to you, if that. Not you, Sar. But I mean, in general, if a person wants that, hey, if that's your fancy, hey, that's great. It's just not mine. That kind of stuff just.

Doesn'T make any sense to me at all. If I. But if I was going to buy one.

Then I would use.

Passive income from investments to go and buy it. Not earned income.

The earned income goes into multiplying more money.

Money.

And then that multiplied money can be utilized for whatever it is that, you know, you. You want to. You want to acquire. But so many people do it where they miss that important step. They just take the earned income and they go and spend it on those things. Or they take the earned income and use it as leverage to get access to someone else's money in the form of credit. And then they go and buy that thing. That's depreciating the moment you take ownership of it.

That we, we come across people who are just broke at a different level. You can be irresponsible financially at any level, whether you're making 15 bucks an hour or you're making $15,000 an hour.

You're already 100% disciplined in your own set of habits.

Regardless of what your income level is.

Yeah, what you just say, Jason, I think people just needs to have that message, just sit with them. You're 100 discipline. And in all, what was it you 100 discipline in your habits, in your own.

In your own set of habits.

In your set of habits.

You're already 100 disciplined in them.

Yeah.

It's good. Absolutely. Yep. That's good.

Thanks for having me, team. Today was fun. And to all of our attendees who are still with us, thank you. Thank you for spending your valuable time with us. And again, kudos to Sarblo for doing an exceptional job presenting today. And the content was outstanding. So hats off to you, Sarblo.

Thank you.