Experience the Benefits of the Infinite Banking System

If you've already demonstrated over a span of, you know, 10, 20 years to put money away diligently and you accumulated some assets, you have readily available access to capital assets, then there's no reason not to look at shifting or adjusting some of those assets into a structure that is what you want to do with your life moving forward. We get interesting kind of commentary and questions and things that come at us from different points, whether it's like on our YouTube channel or on the podcast or it's on an email that we receive or a conversation you're just having with, with a client. And so this is an interesting one, Roman. You've got an individual that really interested in the concept. They're excited by it. They've been doing some research for about six months now. We hear that like, I've been looking at this for like two years or for, for six months or whatever and, and I've watched all your videos and then, you know, we kind of get questions and the questions are like, it sounds like, well, did you really watch any of the videos? We're not really sure. So a person that's making, you know, about $100,000 a year year, they've built up a pretty, you know, decent amount of assets. They have, you know, somewhere between 350, $400,000 worth of assets and you know, registered accounts and TFSA, some RSPs and these kind of things, you know, some cash set aside and wants to get started with the process, but only wants to contribute somewhere like around $2,000 a year, so like less than 200amonth. So it seems like a little bit incongruent when you're making a hundred thousand dollars a year. You've already obviously done something well enough to prove that you have the ability to put money away, to invest it to, to save it in some kind of a traditional financial vehicle, and yet to only want to, you know, I guess not even dip a toe in the water. It's like dipping the tip of your finger, of your toenail, of your pinky toe in the water and then immediately shaking the water off. And so if you want to build a banking system and you want to start to take over the control of the function as it relates to your needs, you have to have some relevance to what's going on in your financial life. The money that's flowing through your hands, and if $100,000, you know, that's gross income, like pre tax income, but you know, you've got 80, $85,000 flowing through your hands to only be contributing a tiny fraction of that is not going to help you get very far. You know, one of my old mentors, Robert Shields, he wrote a book called you don't have to Die to Win. In fact, we're going to be talking about him on our upcoming client coaching event. Bob would say, you know, you get, you put in peanuts, you get access to peanuts, you put in pennies, you get access to pennies, you put in dollars, you get access to dollars. How you push financial energy into the machine is going to help determine how much fuel the machine has to do anything for you. So you can't go and create a bank by putting in, you know, little, little itty bitty bits. And it doesn't mean I don't want to sound like I'm being, I don't want to be a jerk or anything. That's not at all the case. But it's one thing if all of your resources are going to things and you're, you know, there's people that are extremely committed to different, you know, expenses or whatever. Maybe they just bought a property in Toronto and the interest rates just spiked on them and now their mortgage payment went up a thousand dollars a month, like that's going to apply pressure to your life. So there are circumstances where that's the case. But if you've already demonstrated over a span of, you know, 10, 20 years to put money away diligently and you accumulated some assets, you have readily available access to capital assets, then there's no reason not to look at shifting or adjusting some of those assets into a structure. That is what you want to do with your life moving forward. You want to implement a lifelong process about growth and accumulation and consistency, uninterrupted compounding. Plus get a bunch of tax free death benefit. You want to do that, it's okay to put some financial energy in there. And if you want to actually be able to see what results are created, you won't be able to see much of a result. If you put in your little pinky toe and you touch the water with it and pull it back away again, you're not going to really get any quality activity. There is what I'm getting at.

Big portion in this equation actually is created by uncertainty in the markets. Interest rates are going up like crazy. So they have a variable rate and mortgage. So the uncertainty is stopping people from thinking big instead of just flowing all your, not all expenses, at least part of your expenses through your banking system. Some clients are really looking to put only the discretionary income into the policy. And guess what? When you put the only discretionary income into the policy, then policy will be so small you can't really flow your expenses through it, right? Because you want to take advantage of some opportunity to track you down. And the opportunity is like $5,000. And how can you take advantage of that opportunity? You will probably spend your cash that is sitting in the bank, but you will not be able to borrow from it because you didn't create much capital, you didn't create much efficiency in policy to begin with. Your policy is so small that you can't actually take advantage of that. But if you start, if you do it diligently, if you need access to cash, guess what, you have access to cash. If you need to make a payment or expense to pay for, guess what? You can borrow from this policy. It is not an expense. It is not something that you're locking up. It is money readily available for you. You just need to start thinking big. You just need to start doing this.

And we have the advantage of obviously having policies being able to do this for a while, having, I guess, I mean, I don't want to say advanced knowledge, but having maybe just like an accumulation of knowledge over, over time. But we've never bumped into someone who's been like, oh man, I really wish I started my policy smaller. Man, that first policy got. I really wish I made it smaller. That would have been great for me. Like, I've never said that. And I don't mind sharing. Like my very first policy was 4218 or $19 a year. And you know, at the time that was a boatload of money for me. And I was transitioning from a past career and I was in, I was in a career change. But I knew after reading Nelson's book, this is what I needed to be doing with my life. And I wasn't prepared to go and start doing this journey and trying to educate other people that this is what they should be doing. If I wasn't willing to put what for me at that time was a substantial amount of capital or money into the program myself. And I knew it was going to be a long term program. And how we have access to tools that the tool today that we can implement for people versus what I had whatever 12 years ago or is very different. And so the, the policy I can get today, if I did the same $4200, I could kind of tweak it a little bit where, you know, maybe it would be a little bit more robust out of the Gate, but I would much prefer having the one I got 13 years ago because it's got 13 years behind it. I can't replace the time it is mature enough.

Right.

It's not about the biggest, greatest policy, but it does have to do a little bit with commitment. And are you committed to, to taking control of the banking function in your life? If you've gone through Nelson's book once or twice, if you've watched a bunch of our content, it's okay. If you don't want to do this, like no one's going to. We're not going to send a van over to your house with some people with baseball. B. What? You're not going to do infinite banking? What's the matter with you? Like, that's not what's going to happen. You get to make your own decisions. But if you do decide that you've done enough research and this is a path you want to go down, you're not dipping your toe into infinite banking. You're making a lifestyle choice. This is something that's going to become a fundamental aspect of everything that you do financially for the rest of your natural life. And generationally it will have a trickle down impact to the loved ones that surround your life. So it's okay to pay some premium. You know our friend James Nethery in their Banking with Life podcast, we love those guys, James and Ryan, he's like, the premium is the solution, right? It's the thing that solves the problem. So you want to get as much financial energy into there as you can. Structuring it, designing it with a coach, you know, someone like Roman, that's, that's how you, you put that together. But you need to be able to make a decision about, you know, injecting some capital in to get this thing off. The, you can't. Rome wasn't built in a day. But you know, they also just didn't start with, you know, little tiny pebbles. They were moving big boulders around, you know what I mean? So there's a different way of looking at this. And what, what comes up for me, Rome, when we think about this topic, is page 65 of Nelson's book Capitalizing your system and implementation. And there's a few things that I want to highlight here that Nelson talks about. Assuming that you are by now sufficiently convinced that this is a course of action you would like to take.

Take.

The question becomes, how do I get started? The most important word that comes to my mind is desire. Without it, you probably can't do it. Remember Parkinson's Law back in part two. Everyone is already spending all financial resources on what he or she thinks is best. What he or she thinks is best. There's got to be honest introspection at this point and a commitment to get out of financial prison must be a burning desire. So pulling that apart, what Nelson is saying is introspection is, you know, he would talk about the word ruminate. You got to think about it. Think about your thinking. Think about what's going on in your financial life and where can you reprioritize capital? Where can you, you use capital that you're about to go send away? Can you send some of it through a policy and then access money before you send it away so that you've optimized that dollar for longer than your lifespan? Is there, is there flow of money happening through? I can tell you that there is because it's been that case for pretty much everyone we meet. So it is possible. Does it mean that you need to go and get the largest, most ginormous policy on planet Earth? Of course not. But, you know, 1800 bucks on a hundred thousand dollar salary just ain't gonna do it right. And again, it doesn't mean that you couldn't start there, but what real impact are you gonna see? What real value are you gonna create? And plus, there's certain things. You know, Roman, I talk about this with clients all the time. There's little levels of efficiency that you can create in the size of a policy. But one of the reasons people shop at like, like a Costco or a superstore or whatever is because sometimes you can get bulk pricing, you can get more goods or goods of a higher quality at a lower per unit price. The same thing can apply to the design of the tool, the anatomy of the tool, the insurance contract. There are certain little discount levels that are created. We refer to them as price bands. So, you know, as an example, a hundred thousand dollar policy, a starting death benefit, is more efficient than a $99,000 one. You know that if I, if I put it in the tool and I show a hundred thousand and I immediately drop it to 99, the price goes up and the amount you can deposit in flexible premium goes down. So there's a double whammy of efficiency. There's and, and then there's certain levels where that does happen throughout the, the course of things. So if you, if you're putting in the little pinky toe or the toenail in the water, you're, you're not going to reach any of These efficiency levels. And so you're going to have a stunted growth again. You're putting in pennies, you're going to get access to pennies. Follow up thing that Nelson says, the next sentence, this is going to require a change, a change in priorities in life. Recognizing that controlling the banking function personally is the most important thing that can be done in your financial world. If the person's actually read the book now, there's a lot of con, there's a lot of meat and potatoes in this book. It's easy to glaze over certain things. But this is an important page. This page is not for anyone else but the, it's, it's all about you, it's the reader, it's telling you take a serious hard look at how money is flowing through your life and consider how you might have to shift some things around. Because if you want to be your own banker, look, you're not in this for the short term, you're in this for the long term. And you're going to have to incorporate some long term thinking that fact. That's Nelson's first golden rule. You got to think long range.

Creating a system for yourself and for your family does actually change your behavior. When I started my policy, I would never assume that I will save more year later. The way I'm doing this now is actually I'm thinking every time I get paid I think, okay, how much can I set aside in my own, my own system? Whereas earlier when I didn't do that, I wasn't really thinking about, you know, paying myself first, I was thinking about, you know, anything else, any exciting things I could, I could buy in this life and enjoy my life and maybe not necessarily spend my cash. But now I'm thinking if I put it, if I spend it, that's one story that's great. But if I, if I put it in the system and then borrow to enjoy the same things, I'm not changing my cash flow, but at the same time my cash creates more and more and more and more efficiency every single day.

You have perpetual motion on the original dollar, right? So If I have 100 bucks in an account right now and it's just sitting in my account, if I have an ability to inject that hundred bucks into a premium, that hundred bucks is going to buy death benefit and that death benefit is going to be larger than, much larger than a hundred dollars. And that's going to set in motion a constant path of cash accumulation all the way until age 100. I don't care who the body is, I don't care if it's my, my son or my daughter or a policy on me or a policy on my wife. It's irrelevant to me. The contract is by age 100, whoever, whatever the person's age is. Now, by age 100, that cash must grow to accumulate that new number. Which means I've taken a hundred dollars and I've put perpetual motion on it for the rest of that individual's natural life. Now, I might own that contract if it's on my son. It's on his lifespan to age 100, not mine. And so I might not be here to see all that value, but I think my son's gonna be. And if I go early, what would you believe? Dad's already got a whole bunch of tax free death benefit in place and a boatload of money, way greater, far exceeding anything I've contributed to. Premium is going to come up tax free. The Canadian government can't get their hands on to my family. I think that's pretty efficient use of my hundred dollars. Now all you got to do is take that hundred dollars and start adding more zeros onto it. Make it a thousand, make it ten thousand, make it a hundred thousand. But your mindset is the problem, not the hundred dollars.

How does working with a coach if you're not listening to a coach, how does that help you? If a coach tells you, hey, this is how much you need to lift today, will you be asking why so much? I don't think I will make it. Your coach knows how much you can do. It's not because he believes in you or something that he kind of feels about that. Hey, I mean, I have a feeling that he knows exactly what is what is what you do, what you're capable of. And he assigns you different, you know, different weights to lift and different tasks to do based on your coach's experience, based on your coaches, you know, knowledge, background, that you are capable of doing that. And you may be asking 100 questions. How do I, you know, how do I do that? What it takes to do that? Maybe it's too early. Maybe, you know, maybe I have to know something else to do that. No, just, just try that and see and see how that works. If you're not even touching the bar, how can you get a feeling if this is capable or if this is doable or not? Right. So trusting your coach is a very critical component where your coach can help you with your coaches, the background and experience.

There's so much more that goes into, you know, Like I think sometimes people, and I don't, I don't know for sure, but I would venture to guess, especially if someone's new and they're still just discovering this. You know, we, we operate in the financial industry. We have licenses, we have to, you know, we've got to fill in checklists and we have compliance. We have all these things we got to do and obviously, hey, we, we get compensated for what we do. Like any good human being who's out there doing work in their field, you're going to get compensated. And you know, I don't know too many people that will go to work for free without being compensated. In fact, I think they're going to get pretty upset about that. And I, I'm happy to earn a good living doing what I do because I get to do what I love. So I feel very blessed about that. But ultimately all I'm doing is channeling Nelson's message forward because Nelson's not here to do it anymore. And I'm doing it to the best of my ability. It turns out that my ability shifts and changes over time. I feel like my ability gets better and better as I, as I age. Kind of like a fine wine. Of course, I feel, that's how I feel. We all get paid for what we do. And I think sometimes, or maybe there's some resistance from people because they think, you know, oh geez, you know, the insurance guy is going to get paid to sell this product. Well, yeah, because the insurance company has a distribution mechanism. It's the advisor that's the distribution mechanism. If, if there were no advisors, no one would have insurance at all. Right. And so of course we get compensated. And that compensation, it's built into the calculation of the premium r automatically. And we don't design that. It was designed by an engineer, an actuary insurance. They say, look, we, we know in order to ensure Roman's life based on his age and how, you know, his non smoking status and his, you know, his, his family history, it's going to take us $1 to do that for this amount of money. Cool. We're not going to charge $1. We're going to charge a $10 and we're going to take that extra capital. And in that dollar, it includes paying the distribution force, which is advisors, the, the, the frontline people, paying for administrators, paying for our building, the heat, the computer system, the technology, the tax bill paying for all those things is included in that $1. But we're going to charge more than that because we want that Extra capital so that we can over capitalize the pool of money so we could put more money to work to make sure we can plan for rainy day events. Oh, I don't know, like a COVID 19 pandemic that no one planned for, et cetera. So they have this over capitalization effect and that's all baked into to the premium. So I'm just bringing that up because again, some people are there learning this for the first time and they're, you know, you mentioned the coaching. Maybe there's resistance to coaching. But you know, the reality is we all need a coach in life and we need people to help, help us be inspired and help us learn new skills when we're, when we're walking in a brand new territory, you know, you want to make sure that you've got someone with a nice big flashlight so you can see the dark, the, the dark spots where you're going to trip and fall in your face. And I mentioned Bob Shields earlier. He wrote a book called you don't have to die to win. He was Canadian, he lived in St. Catharines in Ontario. He passed a number of years ago. I think it's been about five years. And he passed. I think it was, he was 80, I believe he was 86 or 87 when he passed away. In his book you don't have to die to win, he talked about his formula for success. His formula for success was a person should be doing a minimum of $10,000 a year in annual premium or 25% of gross income. And if you just did that, you'd basically be unstoppable. And he didn't care what your income was. He didn't care if you made 40 grand a year. And he had an example in his book of someone who made 40 grand a year and did a 10k premium. And he explained how they did it and, and he, he had it, you know, he had a map of kind of how that works and you know, whether that is exactly the path that people go. It's not the point. The point is he could, he could demonstrate the power of what that would look like in, in your loan life. Now I did a, we did a session with Bob. We flew him down to Edmonton. This was back in 2000, I think it was 2010 actually. It's. Well, it was like, I'm pretty sure it was September. So we're, we're talking about like 11 years ago. And him and his assistant, it was a great session, Training session was just a small amount of us in the Room. And at that time, he walked us through his very first. One of his very first policies that he got, it was with London Life. And his premium was $198 a year. And the original starting death benefit was 10,000. $10,000 death benefit? Yeah. And then he went through this story on. He had had slides and the story was, hey, take a look. Remember what happened in 1972? Oh, yeah. Canada, Russia, like hockey series. And he's like, oh, cool. I was there. I took a 500 policy loan and I went with two buddies and we showed up and we also got tickets to the opera and all this other stuff, you know. So he told me, he told these stories. Like every two years he was taking out a chunk of money, like 500 bucks here, 500 bucks there. But it was a. It was an amount that was greater than his premium. And he was demonstrating how this machine just kept building and building and building and building. And then he summarized it all and he says, okay, now take a look at my illustration here. And he's like, look at, look at age. You know, my. Right now, at the time of the, at the time of the recording, he was about 81 years of age. He says, hey, look at how much cash value is in there. It was, I can't remember the number. I want to say it was $21,000 or something. He says, now notice it's only, it's only 21,000 going up. Instead of add a zero onto it, what if it was 210,000 going up?

Yeah.

He said, had I got the hundred thousand dollar death benefit policy, my premium wouldn't have been 198 a year. It would have been 1544 a year. So it would have been a discounted value. It would have been times 10. And then he, and then he said, had I had that and had someone coach me on how to do that, I wouldn't have $21,000 in this policy. I'd have like $210,000 in this policy. And it would be growing up at $20,000 a year. Right.

Wow.

So all about the perspective. And he really drilled that home. He was a really powerful lesson. You take lessons from people who lived longer than you guys like Bob Shields and Nelson Nash. And I didn't live Nelson's life, and neither did you, Roman, but we learned his story. In fact, you can go to learnfromnelson.com that's learnfrom nelson.com and you can watch an entire seminar of Nelson as he walks you through stories just like this. And you can hear it from his mouth. When Nelson passed away in 2019, there were 17, I repeat, 17 death benefit checks paid out. And there was also 28 policy contracts or assets that were still in force that were now automatically transfer to family members that Nelson had accumulated or started throughout his lifetime. And in that example, he's created perpetual motion on money that he started with earlier on in his life. Nelson didn't even really truly discover this and start to really hone in on these concepts that he, that he developed until he was about 52 years old, like in the, in the early 80s. So he was already, you know, some people that, we hear people that they're 50 years old, it's like, oh, am I too old for this? I'm like, Nelson wasn't. If Nelson wasn't, I don't think you are. Right.

Yeah, you're no different.

And so I bring this up to say that the impact of that man is it exceeds most things than what most people can do. And the key thing is this. If you had, imagine you had a, you know, Nelson at one time, he had 49 policies and he gave a bunch of them away throughout his lifespan. He was able to, he transitioned over $750,000 in cash value contracts to family members while he was alive.

Wow.

They also gave over a million dollars away over their lifetime to charities and churches while Nelson was alive because he believed he was a giver. He believed in giving and tithing and those kinds of things. And, and then still there's all these death benefit checks that were paid out, plus assets still enforced that are still accumulating when, when their kids, you know, receive these policies, they're receiving an asset that continues to give. It's growing in cash every single day and someone else is going to die. That means there's 28 new tax free exits that are still yet to come from Nelson's legacy, not including the new policies that have been probably been created since, which are probably created from the funding source of Nelson's death benefits. Right. And Nelson's wife Mary, some point in time, Mary's going to graduate and we don't know when it is. I hope it's a ways in a long ways in the future. But when it does happen, there's a bunch of contracts on Mary's life, there's going to be a secondary tax free event that happens for the family. And again, we're talking about this perpetual motion situation and it's really incredible to know that that has happened and it can happen for you.

Yeah. You just need to remember Nelson Nash's five golden rules. And one of them is don't be afraid to capitalize. So if you do, then you will, you will realize it later. But you can't really go back and change your first policy and make it bigger. You can't. You just need to realize that you just lost some potential of growth and you just need to start a new one.

But I see we had a question come in. What's better on these two scenarios? A 10k premium for 5 years, total of 50k in premium versus 10k of Bitcoin for 5 years. What's the end of the 5 years look like? Pros and cons. So, I mean, that's a great question, but the reality is, who knows? Because I don't know what five years looks like from now. I can say one thing. I don't know what the price of bitcoin is. I personally am a little bit bullish on bitcoin. That's just me as an individual. No, no advice or anything there. I just, I have a personal interest in it. But I do know that the money going into the policy will be there. I don't know.

Yes, 100%.

And I also don't know who's. Who's accepting that money at that point in time. I also know that if you put 10k into a policy for 5 years, you can access a bunch of that money in each one of those years. And if you access that money and then you went and bought the same equivalent, whatever appropriate amount of value of bitcoin was.

Right.

You would now have the policy and it would be growing for the rest of time, plus the death benefit. And you would also have bitcoin. You might not have the same amount, but you're probably going to have a pretty good correlation to those two things. Sure. This is never a do this or do that scenario. Everything else you do in your financial life is like that, with the exception of ibc. IBC is do IBC Warehouse Capital, Access Capital. Do the same thing you were going to do anyway, that is by bitcoin.

True advance from the policy. Yeah.

You want to go 100 double down on Bitcoin. Like knock your socks off. Go and do that. Recognize the risk that you're taking, but own it and be. If it all doesn't go well, make sure you understand the situation. But if it doesn't go well, wouldn't you rather make sure that you also have an accumulating pile of asset value in a policy? And if it does go well and you have a big outstanding policy loan. Isn't it easy to go and if you want to get rid of a, you know, point 000001 of a Bitcoin and pay off the policy loan and then you still have all the value it yeah, it would be ludicrous not to think of the advantage of having both of these things working in your life because of the ability to multitask capital. I think people will learn a little bit about again the Importance of page 65 from Nelson's book and that there's a lot you can do and that can be done when you are, when you are getting good coaching and you are, you're you're open to continuing your education process. If something sparks you today, hey, make sure to leave a comment about that. If something, you know, it gets you excited about your own system or increasing your program, that's fantastic because I know for myself I'm always looking for a way to increase the size of my own program.