Farming and Ranching In Canada WITHOUT The Bank

A lot of farmers, and this is the way it was when I farmed, is the banks had a lien on my livelihood. Not only all elements of my business, but even my home they had a lien on. And that's unique in a lot of times to farming and agriculture. Banking may be the problem, but banking is also the solution.

Now I want to take a minute to introduce my amazing colleague, Dan Allen. Dan grew up on a mixed farm where he was involved in everything from milking cows to raising cattle and hogs, to all the activities of growing cash crop. After high school, Dan studied agriculture before returning to the family farm where he worked for the next 14 years. Now, even though Dan left the family farm to pursue other things in life, the joys and challenges of those years.

Stayed with Dan for the rest of his life, ever since. And Dan is thrilled to be able to support those who produce food. To teach you how to become your own banker, to teach you about the infinite banking concepts so that you can strengthen your business. Dan was introduced to the infinite banking concept, becoming your own Banker in 2013, and he started practicing the concept personally and 2014. And Jason Lowe has been his coach and mentor ever since. Dan actually left his previous career in 2016 and trained to be an authorized infinite banking practitioner. And he's been coaching people to implement the concept ever since 2017. And I can't wait for Dan to take over. But before he does, I also want to introduce our co capital farmer, that is Sarblo Gill. He's an amazing coach as it relates to the process of becoming your own banker. An amazing human being, he coaches and develops good people on our team so that they can be proficient at this process and help more Canadians learn to implement the process of becoming their own banker. So without further ado, excuse me, I'm going to hand the controls over to Dan if you're ready to go. Dan, it's all yours. Take it away.

This next 90 minutes that we're just going to spend time really helping you understand all those things that Vern talked about, like how could you do things differently financially and what difference would it make? So I'm just thrilled to be here and to help you through this journey tonight. And like Vern said, had such a soft spot for farming. I grew up on a farm and it still, every time I get back on the farm, it feels like just a breath of fresh air. And the last time I want to hop in a combine or I do something, it just feels right. So I'm glad that I can be Here. And hopefully through this process we can help you understand a different way of doing things financially for your farm in the next 90 minutes. I'm going to help you with is to gain clarity on one problem. And that problem is the financial problem that you as a farmer or rancher face. And when it comes to how you finance your operation. And we're going to talk about the solution to that problem, that's going to be a key element tonight. What is that solution to the problem? I always go back to what Nelson said. If you understand the problem, the solution will become clear. So by the end of this session, I hope you really have a great understanding of what A the problem is and B, what the solution is. And what I really hope is that you will find that you feel like you've gained something tonight that will help you on your farm or ranch and give you a different way, a better way of financing your operation. And really the goal is about creating a stress free, kind of peaceful way of dealing with financial things. Now I think we've all wondered this question and we all know what the answer to that question is. Well, what's the opposite to being, you know, stress free? Well, I think I've experienced this and maybe you have too. So let's have a look. This is what it feels like. It's not much fun when you get to that position where things are coming apart on you and you just don't know where to go. So we're going to try and correct that problem for you and help you as you go through your journey. When you think about all the energy that you put in to learn how to farm or ranch or whatever agriculture venture you're involved in, you've invested time, whether it's through someone else teaching you or whether going to school or through courses that you've taken and a lot of on the job learning that you've done and you're very good at what you do. And I'm not going to tell you how to grow crops, I'm not going to tell you how to raise livestock or if you're a dairy farmer, I'm not going to tell you how to increase the production out of your cow herd. But what I'm going to teach you and work on teaching you tonight is how to grow capital. And that's really it. To start with, I'm going to talk about who are Nelson Nash's. Now, I don't know how much you know about the concept, but I'm going to tell you this is the, the individual that Discovered this concept. You know, this is a picture of Nelson Nash later in his life. And every time I see this picture, it just takes me back to when I first met him and what an honor it was to hear this man speak about his lifelong journey that he took to help other people understand what he'd learned at one part of his life. So a key element that I wanted to express tonight is that Nelson said this all the time. Everything begins with the way you think. I just want you to think about that. Just think about how everything starts with the way you think. I was just reflecting on some of the things I've done in my life. And what did it start with? Well, first, you know, I had to make the commitment to do it. Then I had to have the courage to go forward and then I had to build the capability. And after I did all those things I got more confident. But you know, when I've reflected on all those things, it always started with the way that I thought. The book that Nelson authored, it's a self published book and this is it. It is the core book that I use to teach and I used to learn and it's just a great resource. And for a self published book it sold over 500,000 copies. Now you might ask, well, why?

Well, the answer is it works. I know it works because I use it in my life all the time. And I want to give you a little glimpse about how it could work for you and the difference it could make. When you think about how things usually get solved, it's usually when someone has a problem and then they discover a way to solve it that wasn't known before. So let's think about that and let's look at what the problem was. Now I don't know if you remember this time or not. I do. Those early 80s. Whoa. And it kind of, you know, as I got thinking about this lately, we're starting to see similar kind of trends as inflation starts to go up. Well, this was kind of a real fun time to be alive and in business when inflation skyrocketed up to 18% in 1980. So that was a bit of an insight as to this problem that Nelson had. And then on top of that, 1981, I remember this interest rates went to 21 and a half percent for prime. So here's the background we Nelson always said a, I wasn't prime, very few people are. So when interest rates went to 21.5% he was probably paying 23 plus percent interest. And the problem was he had $500,000 in debt. You see, Nelson got into real estate investing and he had done some really good real estate investment deals. This period of time happens and Nelson gets caught with 500,000 in debt on his real estate deal. And you know, that put a lot of pressure on him and stress on him financially. And people said to him, well, why don't you just sell your properties? And Nelson would say, well, what fool at those kind of interest rates would pay me what I need for my real estate property? And other people said to Nelson, well, why don't you just declare bankruptcy? Well, Nelson wasn't wired that way. He was a person of integrity. He said, no, I mean, I got myself into this mess and I'm going to get myself out. You see, Nelson was leveraged heavily. And what Nelson always said, that's all great till the lever goes the other way. Well, when interest rates go up to 21.5% prime, the lever's gone the other way. This man started buying dividend paying whole life insurance in his teens. For protection. Yeah, for death protection. He started to buy life insurance for death protection. And over the years he'd accumulated a number of policies and he had them. His brother happened to be a life insurance salesman and he sold Nelson a policy. So Nelson had had him for a reason, it was all about the death protection. But he discovered, and if you read his book, he discovered this when he was down on his knees and he said, you know, God made it clear to me, you have everything you need to get yourself out of the problem you're in. So Nelson started to think about that and resonate about it. And he discovered, and he said, well, you know, I can use these assets that I own and I can start to take over the debt that I owe at the commercial banks. And that is kind of the way the infinite banking concept got started. Nelson started to look at how he could use those products as a platform for a process that we know now as becoming your own banker. So that's how the infinite banking concept got started.

Thirteen years after Nelson started his journey to get himself out of the commercial banks, he did that by 1994, he no longer needed the use of a commercial bank. And he didn't use a commercial bank for anything but the convenience of checking and debit for the rest of his life. And this is a comment that he made, just give him a real different sense how stress free and peaceful he felt once he had the banks out of his life. The problem, that's what we want to start with, that faces you as A farmer or rancher. I grew up in a family farm and yeah, we, we were a real mixed farm. I was just blessed to have that as a place to grow up. As a young person, it taught me all kinds of good things, how to work, you know, and just have responsibility and those kind of key things that were all part of it. And I, as I went through that childhood and those early development years later on, I just started thinking about, you know, what I would like to do is be a farmer and carry on with what I knew. And you know, I like the lifestyle. I enjoyed working with equipment, I loved working with livestock. Found lots of challenging but fun stuff to do, and I loved being outside, and I liked the fact that you could see the fruits of your labor. You know, you got to see results. And that was just something I enjoyed a lot. So as I went through high school and stuff, I said that's what I want to do is I want to, you know, continue on with the family farm and be a farmer. So I planned on going to college and educating myself, and that's what I did. I would have preferred to be into cash cropping, but there just wasn't land available to do that where our family farm was. You see, my older brother, he got the jump on me and he, he bought up whatever land was available around to expand our family farm. So there wasn't nothing left. And so I had to come up with another way to farm. So part of my two years in college, I was thinking about, what am I going to do? What am I going to do as part of that farming operation? And over time, I landed on, I'm going to be a hog farmer. So then I started planning what that would take, designing the barn, coming up with type, what type of operation, all those great things that I got to do at college. And I just took the courses that would help me. You know, vocational agriculture is kind of what I always tell people. It's like you become the jack of all trades and the master of none. So I took things like mechanics. I learned how to burn rods the right way, did a lot of welding, all those kind of things that I could use. I took business, I took engineering, all the elements, nutrition, all those kind of pieces. I took them at school. And you know, when I left school, it was 1978 and I turned 20 in that May and I was ready to set the world on fire. As a farmer, I wasn't scared of work. I was just looking forward to making a difference out there. So I had to find a source of capital. When I was in school, the one thing that I remember was when we started talking about financing, they just. Well, we learned about where you could go to get financing. So for my capital expenditures, I had a loan with farm credit corporation to start my hog farm operation. And I not only built the Barn Starting in 1978, I also built a house. The FCC loan was like 8 1/3% and it was like fixed for 29 years. You're probably aware of that in Canada, those were how the FCC used to lend money. And you could get long terms and fixed interest rates. But the operating loan to, you know, feed, get everything going was at variable rates. And then when I got nicely started.

Interest rates went to 21 and a half percent for prime. And just like Nelson, I wasn't prime, so I was paying 23 plus percent. What did that mean for Dan? Well, what it meant is I had to find a job off the farm just to pay for the debts that I had and the bills that I had. What I wanted to express with you is the pressure, the stress that that high interest rate put on me and the whole family farm. I just seen it and I felt it. Unlike Nelson, I come out of that experience and it goes back to all begins with the way you think. I come out of it thinking the best thing you can do, Dan, is get out of debt. And I started working towards that. And yeah, I did achieve that eventually, but if I'd have known there was a better way, and we're going to talk about that as we get back into it, what did I give up by doing it the way I did it? Because I didn't know what Nelson knew. Farming and ranching comes with all kinds of uncertainty, Things that you can't control. This is one I just had to mention the weather. Now, I don't know what type of operation you have, but there's not too many farming and ranching operations that aren't impacted by the weather, Whether it's too much rain, whether it's not enough rain or flooding. You know, we all remember last year and what happened in the lower mainland part of British Columbia with the volume of rain that they got and the flooding and how it impacted the agricultural businesses in that area. I've been in the combine, you know, where you roll in and in the fall and you go into a bit of a dip and there's nothing there because at some point in time everything got choked out because there was too much water. And we all know what happened with drought. So weather is just a Huge impact for farming and ranching ventures. There are just a ton of things you deal with that provide uncertainty, things you can't control. And I think this one was probably mentioned in that list. So when you think about the markets, I can remember back when the old BSE was a real factor for livestock beef producers in our country and it was really outside of their control. And even lately some of the mad cow disease kind of things that gets floated out there and how countries will stop taking our beef, it's just a lot of things. When you think about how foreign governments can impact our markets, it's just a huge factor. And so much of this is outside of your control. To say nothing of, you know, input costs. Like I've seen where the price of land has gone to. I've seen what the cost of equipment is. Everything costs more and more all the time. And it's just a huge pressure. Like if you think about different areas for different people, this is a different factor. But some areas just the pressure that's on the land that's available drives up the price. And then lately it's the fuel cost. I think you guys probably put that in the chat box. I was just talking to my brother in law this week and he's a farmer and he was just talking about, hey, you know, he'd ordered his fuel for delivery two weeks ago. They couldn't get it to his place because they didn't have enough help to drive their fuel trucks. And he was pretty focused on, you're going to sell that fuel to me at the price it was two weeks ago when it finally did show up because it's such a change recently with that war going on in Ukraine and how it's put pressure on costs. That's just things outside of her control. They're happening all the time. So the problem that we're going to address today is as simple as how you've been financing your farm or ranch. Now there's a, there's a really good quote that I like to share and it's one that Will Rogers had said at some point. And it really comes down to, you know, when you think about it, it's not the problem is what, not what people know, it's what they think they know that just ain't so. And that's one of the key things that, you know, we get conditioned to think away that the way we think and it at times it actually hinders us because we just think we know the answer, but it really isn't so. So today it's time to address the efficiency of financing on your farm or ranch. Now here's something I wanted to share with you. Now I've been around enough to see how things are changed on the farm. I can remember running up and down the field, you know, seeding, and I was just trying not to make that overlap too large. Well now with gps, the technology that's available out there, that's improved the efficiencies so, so much on those types of farming operations. And then when you think about precision seeders, like I can remember seeding canola, well, actually back then they called it rapeseed with a broadcast spreader and now they have these precision seeders. And yeah, when you know and see what the cost of a bag of canola can be for seed, you'd want to have a precision seeder. But the technology that you've started to use in your operations has improved the efficiency. And thankfully, so, because you've had to, to survive, you've had to improve the efficiency and increase your productivity because all those other pressures that are out there, those things that you can't control, gives you a leg up when you can improve your efficiency through technology. So let's talk about addressing the efficiency of how you finance your farm. So you might say, okay, well what's wrong with the way we've been financing our farm or ranch operation? Let's face it, it works like a lot of you have made it work and that's good, that's a great thing. But here's what I want to share with you. You are doing all the work.

Everyone else is getting your money. That's really it. It's about.

Where you, how your money's flowing. You know, you got a lot of money that flows through your operation and you're doing all the work, but who gets that money? So the problem is it's simple as how you bank. You know, when I go back to that one quote we use a lot that Nelson always shared, you know, if you know what the problem is, the solution will become clear. Well, I'm telling you, this is the problem. It's how you bank. It's how you go about financing your operations. Now this is another fact. You're very familiar with the process of banking. You do it all the time. We all do. It is something that we're going to do the rest of our life. We get paid, money goes into our bank account. We use that bank account to pay for the things that we are need. And money's always flowing. So you're already banking that's something you do every day. The problem is you're not controlling it. And there's another thing I learned as I got into life a little further and started to understand this concept. Most people know next to nothing about the process of banking. I go back and I think about when I studied business, agricultural business, in college. We never talked about the process of banking. We just talked about where to get financing and you know, we looked at accounting methods, but we never really understood and I didn't for the longest time how important the process of banking was not only to your life but your well being. It's one of the more important things out there is the process of banking. Now when I put this slide up, I'm kind of glad we're not live because you might be throwing stuff at me because. Yeah, I'm with you. Agricultural agriculture is one of the key cornerstones for our world. Without it, how would we feed the people? Like for me, you know, if I didn't have you doing what you do, I'd have to be out there, you know, planting something, growing something. I'd have to be gathering stuff. Thanks to what you do, I don't have to do that. But one of the things I wanted to understand is banking is the most important business in the world. Without it, everything we know comes to a halt. Well, you might push back and say, well, without food everybody dies. Well, that's true, but I just want you to think about banking and how it's so critical. If money stopped to flow. And it almost happened in 2008 when we had that financial crisis, governments had to step in and get money back in motion. Without banking, everything, again I repeat that everything as we know it would come to a halt. I want you to know that there's only one pool of money in the world. Sure, it's controlled by different organizations, but if you think about it, if you're farming or banking with RBC and you taking money out of your account at RBC and you pay for something and whoever you gave that to, they bank at a credit union or they bank at td, the money's going to go back into the same money system. You've all heard it that you know, money follows the sun when we're sleeping. Money's in motion in other places in the world. So really a key fundamental to remember is there's only really one pool of money. And the banking system, well, what does it do? Well, it pumps money and money has to flow and it, at some point it flows through your hands and mine. So I want you to think about how much money actually flows through your farm or ranch. I think it's an amazing amount. I've seen what it costs to operate farms lately and it's just phenomenal. So why not think about how financially efficient are you with your farm or ranch? And a way to gauge that is like you, if you think about how much of the money that flows through your hands do you keep. Kind of one of a good question to ask yourself. How much do you keep of all that money flowing through your hands? The question I have for you is this, who controls the banking function? One of Nelson's key teaching points is it's all about how much the banking function you control as it relates to your needs. So that's why I wanted to put that out there for a lot of farmers. And this is the way it was when I farmed is the banks had a lien on my livelihood. Not only all elements of my business, but even my home they had a lien on. And that's unique in a lot of times to farming and agriculture. And there's nothing wrong. You know, I don't bash banks because I love their model. You know, they lend with security and I think we can learn something from banks. And hey, you know, banking may be the problem, but banking is also the solution. So I'm not going to bash banks, but it just puts you in a position that, you know, how did that make you feel? And I don't know how that makes you feel because I know how it made me feel. And I'm going to tell you that you can change that narrative because you finance everything you buy.

And whether you know this or not, you either pay interest to someone else or you give up interest you could have earned. Now when I was talking earlier about my story and I got to, you know, the one thing I wished I'd have learned and I know now way back when Nelson figured it out is like when I was paying cash for all those things because I got to a point where I was debt free because that was my focus. That's all. It began with the way I thought I wanted to be debt free. Well, what was I giving up? I was giving up the interest I could have earned. And one thing I want you to know about these two interest costs, there's just no exceptions. Either give up or you pay up when it comes to how we've been taught financially to do things and to finance our businesses. So I wanted to show you a little example. And the top one is kind of Most people get and understand that there's a cost of interest when they borrow money. So up in the top here, I show the debtor and the debtor, you know, where.

When they need money, they go and borrow it from someone else. So they're paying someone else for the use of their pile of money. So they take out the debt, the loan, and they start to pay it back. And they know that as they pay that back, that interest is part of their payment. So they get it all paid off and there's going to be something else that they need. So, so they borrow again and they go through the same process. And this is kind of a cycle. And for some people, the way they finance things all the way through their life, it's the debtor style. They finance it by taking debt, paying interest and paying off the debt to get back to here and they go and do it again and then there's the saver. So this is more like I was when I got past those first few years and being really in debt started to be the saver. And I would save up my money and then when I needed something, say, you know, when I bought a truck, what would happen? Well, my money would go right back to where? To zero. You see these two zeros, one on the top, one on the bottom, it ends up in at the same place. Yeah, I changed the process, I saved it up and then I spent it and bang, I had to start saving again. And what often people don't see is the interest, the opportunity for the interest is because they killed the growth right here at the top of the saving pile, they killed the growth of their money, never going to have access to it again. So there's a cost, even if you're paying cash, there's an opportunity cost. So that's a key thing. I wanted you to learn a key teaching point. And both methods are permanent transfer of money away from you and your business.

So I already mentioned this once, but it's such a key thing that Nelson said and taught. If you understand the problem, you'll know what the solution is. Now I want you to think about over the course of your lifetime. And I don't know how old you are, but all of us that are different stages of life, I want you to think about how much. Think of all the money that's flowed through your farm or your ranch for things like, you know, the mortgages, equipment.

All these things that I'm just listing here. There's no shortage of things that you're spending money for.

And there's going to be a lot. From the time you start farming until you get done farming, there's going to be a huge amount of money that flows through your business. If you added up all the money you've earned and sped up to that, spent up to this point in your life, and it's going to look like more than that, but it'll give you an idea of it. I just ask you, could you write me a check for that amount right now? I know I couldn't. And it was one of those things that just frustrated me as I learned about how I'd lost so much opportunity in life because of the way I was banking. Now, my coach and mentor, Jason Lowe, made this statement and it's such a key statement for you to consider. Have the banking process work for you, right, rather than against you. That's what we're talking about. If you can change the flow of money, there's nothing wrong with being the bank. If you can be the bank and if you can change the flow of money so it's coming towards you and not away from you. Because everything we've been doing and everything we were taught to do when it came to financing was sending your money to somebody else's bank. So the money's flowing away from you. And if you can change that narrative, just like Jason said, wouldn't it be better to have it working for you? And this little picture was the last time I got to see Nelson. It was in February of 2019 at our annual think tank. And I was really blessed to be there with him just a month before he passed away. And just to spend time in his presence was an honor. But I'm gonna give you a little look at. You can hear him say to you. So we're going to show a little video clip.

My oldest daughter works for Auburn University extension service. And I say to Debbie, Deb, you guys are out there teaching farmers today how to grow crops with scientific precision. But every farmer today is highly capitalized. Nowhere are you guys teaching people how to grow their own capital. Let's contrast that with you teaching people how to grow cattle. Cattle consume feed cow chow. If I were a farmer growing cattle and I bought my cow chow off the market, you guys would laugh me out of the county. You need to be growing your own cow chow. Well, don't you need to be growing your own capital?

And see, that's not taking place.

That's not thought of. Pretty powerful. When I hear Nelson speak to that. It's just something we're not taught and I go back to what Vernon said early on.

You're really good at growing crops and you know your business really well. But you know, when it comes to growing capital, that's what we're talking about. And I know Nelson put it so well. I just love the fact that we could share just a moment with Nelson. For you, the objective is to change the flow and keep the money in your banking system versus someone else. That's as simple as it, as it is, change the flow. You're already banking, so we're not going to tell you to do something differently. We're just going to teach you to change how your money's flowing so it flows into your bank system and not someone else. You're going to. You may be thinking, well, how can you do that? Well, I hate to be redundant, but yeah, you do it by becoming your own banker. And why, why is it you want to do this? Well, it's a really short answer to that question. It's all about total and absolute control. That's what you can get with this process. When it comes to the financing needs of your farm or operation over time you can get total and absolute control. Now Nelson had five golden rules and one of those golden rules was think long range. He was a forester, so he thought multi generational. So he always thinking long range and he's saying don't be afraid to capitalize. That was another one of his golden rules. But I really wanted to focus on think long range because a lot of us think, okay, well if I'm going to get total and absolute control, how long is it going to take? Well, I can't answer that question for you. I know if you go into Nelson's book and you read about how long does it take the average person to get control of the banking function as it relates to their needs, he uses terms like 20 years and it's going to vary from person to person and situation to situation. But what I'm going to tell you is that you can achieve this right here. You can get total and absolute control. And we're going to show you the difference that would make. What is the infinite banking concept? I wanted to give you a little background on it and in particular what does it do? Well, this is really a definition. It's privatized banking at the you and me level. To reclaim the banking function in your life, you do it with a very specific design of participating dividend paying, whole life insurance. Now some people hear that word and there is a way they just tune out life insurance well, give us the time to understand this product because this product makes a perfect foundation platform for banking. That's what Nelson discovered. And if you discover that and use that, you can change everything and how you finance your farm. I just wanted to give you a bit of information, like participating dividend paying whole life insurance is nothing new. You know, it's been in Canada longer than any of us have been alive.

And actually before Canada was its own country and the wealthy have been using it for years. If you want to take some time sometime, just Google the Rockefellers and look into how their trust is designed. They've been doing this for years. It worked for my grandparents and it still works today. And when you think about it, what else out there has that kind of a track record? Nothing that I know about. And if you know about something, I'd love if you'd share that with me. So what is the participating part of participating dividend paying whole life insurance mean? You become a co owner, a part owner in that life company, and you participate in the profits generated from every line of business. Now, personally, all the policies that I have for the process of becoming your own banker are all with a mutual company because I want to make sure that I get to share in all the profits that company has and that none of those profits are getting shared with stockholders. So that's why I use a mutual company dividend. So that's how the profits are shared with you. And each year the life company declares a dividend. It is contractually agreed guaranteed, I should say, to be paid to the participating policy owner. And it can never be repossessed or lose value your whole life. You know, one of the key things, one of the key teaching points about this product and why it works so well for the process of banking is that it has to grow cash value every day because the contract is going to state that the cash value has to equal the death benefit by age 100. So in order to do that, it has to grow every day. That's the contract. That's a key element in the contract. Like people will ask me, what's the dividend scale? And I go, well, the dividend scale is icing. But the cake is the fact that you got this contractual agreement, you're the owner of the contract, and it states that the life company has to grow the cash value to equal the death benefit by age 100. That's a huge factor. The policy can't lose value. Now when you think about.

How much is out there right now for financial guarantees, not much.

So this one can help you just with a peaceful way of doing things with certainty. That's what I like about it. Even when I work with people like yourself, it's the certainty that I like. I don't want to set you up with something that may or may not work. I want to set you up with something that I know is going to work. That's what I love about it in a lot of ways, because I use it and because I help other people with it. Unmatched financial security. I haven't found nothing else out there. And when you think about it again, that cash value begins to accumulate immediately and it's contractually guaranteed. Cash values can't go down. There are several tax advantages that come with this product. It grows a death benefit. And what's the key thing about the death benefit? Well, it's a tax free kind of wealth generator for the next generation. Key things about it. So I would like you to be a wealth creator. I'm going to show you a little example. And if you remember back to the one we looked at earlier with the debtor and the saver, this is an example of a wealth creator type of process. So this is be what it looks like if you're using this process in your farm or ranch to make a difference here in Canada. So you pay premiums. And as you pay those premiums, right away you're going to get access to some of the value that's already been built up. And so if you look at this first milestone here, this could be in the first month of having your policy. You could take policy loan out, but maybe you don't have enough for all of your needs, so you're still utilizing someone else to fund the rest of it. But over time, this is what happens. Your capital never leaves your banking system. You don't interrupt the growth of it. It keeps on growing. It grows uninterrupted for the rest of your life. And what happens is as that cash value goes up, you get to a position like this where you go to when you need capital for something. So you, when you access that capital, it's all, you don't have to borrow it from anybody else. You have control. You have ultimate and full control. At this point you're able to take what you need out of your policy or system of policies by taking out a policy loan. So that policy loan, you're not interrupting your growth because you're just using your value as collateral to take that loan out. So you don't interrupt the growth, it keeps on growing. And you can just imagine.

The power that this generates over time. The power of uninterrupted compounding is just huge. And that's the advantage that it provides to you. So you might be thinking, hey, Dan, can you connect me with somebody on the team to really take a look at my situation and show me, you know, how I could become the banker? Well, the answer is yes. We're blessed at Send It Financial to have people just for that. Good IBC practitioners all trained, all using this concept in their life. So we have a call that you can participate in, and it's designed just for that. You can text the word schedule to 780-809-4599. You know, that's as simple as this. And you can reserve a time to talk about this with someone. Now, I hope you're starting to, you know, say, I think I could do this, and I'd like to know how I could do this. And I know you're capable of doing it if that's something that you choose to do to become your own banker. So here's what you can expect from us just based on the fact that you were kind enough to show up here today to learn something, and I give you kudos for that, is we're going to stay in touch via email. And hey, if it doesn't work for you, unsubscribe, you're going to receive an invite to schedule a time. You can get ahead of that by scheduling yourself, but you're gonna get that invite. If we don't hear from you, we're gonna do you the courtesy of just calling you and asking if there's a time where you'd like to speak about this. And if you prefer not to meet, that's okay, too. We just want you to leave happy. So if you're committed to discovering.

How this process could be an advantage for you and your farm, your branch operation, well, it's as simple as, you know, just texting the word schedule to 780-809-4599. Now, we're going to go into one case study. I just wanted to give you an example of how this can work. So we're going to review a case study with you shortly. Now, most farmers and ranchers, how are they financing their businesses today? Well, there's probably three ways when you think about it, and those are either through bank financing, leasing, or cash. The thing I really want you to catch, and I really want you to think about this one, is that it doesn't matter which method you're thinking about. And irrespective of what the interest rates are, there's one thing that I want you to think about. Who is getting all your money? That's the thing I want to think about. So even if you're thinking, well, I got a really great interest rate, your money's still flowing to someone else, they're getting all your money. So in all likelihood, you know, it's not you that's getting that money, it's going towards someone else.

Now, how does that make you feel? Well, I can tell you, and this is something that I experienced when I first started to learn about this concept.

When I realized how much money had flown through my hands that I no longer had access to. This is kind of how it went. I can remember I was watching a DVD in my living room and I got angry and my wife actually said to me, if it's gonna make you angry, shut it off. Because I just started to think about all the lost opportunity that had already gone through my hands. But I can tell you today I'm glad that I changed that narrative. And now this doesn't happen. I don't blow my top anymore because I'm thinking about the money that's left my family and my business because I practice this concept. So I want you to know that there is a better way. And yet it starts with this. And I go back and I got to give kudos to the man Arnelson Nash and this concept. If you finance using the infinite banking concept, we're going to show you what that'll look like. We're going to go through a farm operating loan case study. Before I go through that, I just want to have a, you know, just stopping for a moment for a word of caution because when you start to see numbers, quite often people start to question stuff, well, how did that work? Or how did this work? And often as we go through these case studies, all your answers, your questions are going to be answered as we go through it. So I'm just going to encourage you to just, you know, take in all the stuff that we go through and then if your questions aren't answered, by all means, put them in your Q and A box. So that's just a brief thing I wanted to talk about before we got into the actual case study. Now I want you to meet Marty and Wendy. This is a young couple and they are farming. They're both 38 years young. They have two children under the age of 10. And Wendy is actually a first generation farmer where Marley is a third Wendy is also a schoolteacher. And they're cash crop farmers, so they grow cereal grains and they have some 1700 acres that they farm. They rent some of it and they own some of it. Pretty typical in a lot of cases. Each year for their operating loan, they've been borrowing $500,000 from a commercial bank. And lately they've had a really good interest rate right at 4%. So that's what they've been doing. They also have land payments, they have equipment payments, they have living expenses, and they're just other family debts that they own. They're doing okay, but when you add it all up, it's a big debt load. So, you know, again, they could just choose to go on doing it the way they've been doing it. But because they took the time to understand the infinite banking concept, they wanted to change that. So we're just going to talk about what their objectives were when they started this whole process of the infinite banking concept for their farm. One of their objectives was to expand their farm. First and foremost. Key kind of objective they put out there is they wanted to own and control their annual operating loan in 10 years or less. That would give them total and absolute control over that need, that financial need within their operation. So they'd be starting to control part of their need for finance and they'd have all of that controlled when it came to operating their operating loan. And Wendy, she wants to top teaching in 10 years. They wanted to have funds available for passive income when they get to that time of life that they want to slow down. And I give them credit, they've already started to put away about 30,000 a year into savings. They wanted to have protection on each of them. That was another thing they felt, you know, that was key for them because, you know, one of the things I learned about life is we never have any guarantees and you don't know what could happen. So this is a key thing for them. To protect their family and their farm is to have protection on their lives. They wanted to be able to help their children if they choose to farm in the future. They wanted to be able to help them with the transfer of wealth and knowledge that it will take them and not just the knowledge on how, how to produce and grow crops, but they also want to be able to teach their children about how to finance the things they need in life. Here's what they did. Working together with their coach, they made a commitment to change how they're going to finance their business. They decided to start to save 50,000 a year to obtain their objective using Wendy's salary. And with that, we started a dividend paying whole life insurance policy on each of them for $25,000 annually. What they do each year, and even in the first year, this is what they did. They took a policy loan with the amount they could and they reduced the amount they had to borrow from the commercial bank. So already in year number one, they started to reduce the risk to their farming operation that someone else was controlling all the financing they needed. So they started to transfer that risk away already in year one. So every year as they go through this, they capitalize. Nelson's second golden rule. Don't be afraid to capitalize. And then they use.

The value that they have to take a policy loan and reduce the amount they have to lend from the commercial lender. They pay back their policy.

And they get to make a choice at a time that suits them best. Like they get to say, okay, now when's the best time to sell the grain that I have to sell? And they can choose to do that. They just made a commitment that they were going to do it before the next growing season. So they had the latitude to pay it off in the fall or in the spring before they got going. But they ended up with that kind of control and they were paying it back just no differently than they did with their commercial bank loan, treating it like their own banking system. And with your own banking system, you should be more focused on making sure you pay it back than someone else's system. So you're already doing that. And they didn't change that. They just changed who was getting what portion of it. Now after 10 years, they decided that after 10 years, this is, you know, we're not through those 10 years yet, that they're going to reduce the amount of funding that they're putting into their policy. They're going to drop it down to the required premium. You see, there's flexibility with the way we design these. Yeah, you want to put capital in. You want to put as much capital in as you can, but there's also flexibility. So they kind of timed this 10 year decision with, you know, when Wendy wanted to step away from having that teaching career. So they had the flexibility to do this. So they, in the 11th year, they decided to drop it down to just 12 and a half thousand from the 50 because they could.

So let's take some time and look at the outcome. They were able to own their $500,000 operating loan by the 10th year using their private banking system of policies. In fact, they had access to over a million dollars at age 58. So 20 years out they had over a million dollars of cash value. And at that point they put over just 600 in his premium. Jump out another 10 years and they had over 1.8 is what they'll have in their banking system. And all they would have put in by that point is 743,000. Now, I know you probably want to see the numbers, so let's go look at some of the numbers. Now, this is just both of their policies added together. So you can see a, the 50,000 they were putting in for the first 10 years and how the cash values were going up each year. So this is the first year, you can see the premium 50,000 and the cash value was 42,000 at the end of that year. Now, something I wanted to share with you was let's just look at the third year. So comes the third year, they put in their 50,000. One of the things I want you to see is that by the end of that year, their cash value had grown by 54,000. So already at that early stage, they're starting to get more value than what they put in at the start of that year. They're already starting to see the benefits of how this starts to generate wealth.

So that's one of the things I just wanted you to see in this simple little example. We talked about one of their objectives being 100% control, their operating loan. So if we go look at year number 10, you can see what the cash values are at year 10, almost $600,000. Well, you know, they can borrow up to 90% of that cash value. So that puts them above the 500 they need. So by the time they get to the 10th year, they've achieved that objective. They're now able to control their operating mode. They don't have to go anywhere else. They have, they've reduced the risk altogether. They get the full latitude on when they pay that back and how they, you know, whether they pay it back in November, December, January, February. They get that latitude and it gives them absolute control of that financing need on their farm. We're going to take a look, a closer look at year 10 and things I want you to understand, we already talked about some of these. That's what their cash value was at the end of 10 years. Now, an operating loan, that's what they took from the insurance company at the end of that 10th year for $532,000. Because they could, and, you know, that's 90% of their cash value.

Now the interest rate that that life company charges is 6.2% and some people go 6.2%. Why would you pay 6.2%? Well, again, I want to remind you, as a dividend paying policy owner, you're going to share in the profits of that company. Where do they get their profits from? From a lot of different places. But part of it is the interest that they charge. Now if you think about a lot of us getting together and pooling our money together and we put it in this big pool and then somebody wants to borrow part of it, wouldn't you want them to pay interest and wouldn't you want them to pay interest in a way that it helps all the rest of us? So I have no problem paying 6.2% interest. In fact, I pay my policy loans back.

3% above what the life company charges me. That's another topic. I'm not going to get into it right now, but that's because I know the Life company can put that money to work. And when they do, what do I get to share? I get to share in the dividends. I get to share in the profitability of that Life company. So anyhow, sorry about the rant about the 6.2, but I get that question a lot. So I just wanted to address it. Total interest.

They accrued from year 10 to 11 was $33,000. And so what do they do? They pay it back. They pay it all back. They pay the principal back, they pay the interest back. That's what that looks like. They've actually put back in 565,000 plus dollars into their banking system the next year when they go to use that policy loan for operating costs on their farm or whatever they choose to use it for. This is how much money they could have accessed. So it went up to629. One of the things that I want you to understand, Nelson spoke about it, it's factual. When you pay yourself back every dollar you put back into your system, you're going to get to access again plus more. This is a good look at plus more paid 565. But the cash value at the very next year was up to629. If you think this sounds good, I always tell people, well, hold back here, let's just, let's just compare it to something else. Like what else could you do? Compared to what? Well, I just wanted to compare it to like a bank operating loan. And so if you look at it, you have set up this loan and we all know what that can be like. You have to sit there at some point and negotiate the conditions with someone else. But say you've got this operating loan advance and it's for $500,000. And just like presently, what Marty and Wendy were paying for their interest rate, we're going to use 4%. So annually, if you kept that loan out for a year, that would cost you $20,000. So the total you'd have to pay back would be 520,000. Everybody gets that. That's pretty simple math. Now, how much can they re access? In all likelihood, if your operating loan is structured for 500,000, that's what you're going to get access to. Yeah. You could increase it if you went back to the bank and negotiated that. When you think back to what Marty and Wendy are able to do in the 11th year, they can access more. And it's not like they have to go ask anybody. They don't have to do anything. It's going to be growing their wealth already. So let's just take a look at how the banking loan at the commercial bank compares to the infinite banking concept. And again, we're just repeating these numbers. They paid back 565,000. When you conclude the principal and the interest, the next year, they could take out 629. They had access to that. They didn't have to do nothing different. They had access to that much more than what they had access to the year before. Another thing we want to talk about is just the flexibility that comes with this process. Now, you'll remember that one of the objectives that Marty and Wendy had was to reduce the premiums that they were paying after the 10th year because they, you know, we'd look, you're going to have control of your operating loan in 10 years. Their need for finance isn't going to go away. They have other debts on the farm. They're going to want to, you know, they want to expand their farm at some point. So they committed to keeping on capitalizing their system. They made the choice that it was going to drop down to $12,000 because they lost that income that Wendy was presently generating in her teaching job. So that's fine. That's a decision they made. They had that flexibility. They could have chose to stop paying anything if they wanted to in the 11th year. They could have made that call, but they chose to put in the 12,000. When you look at this, that's the 11th year. That's just that 12,000 that they put in. And we look at the growth, the cash Value growth year over year. Well, that's like for every dollar they put in, they got more than $3 of cash value growth. So when you think about your need for finance and all the things you're going to finance in your life, when would you want to stop putting capital into something that's got this efficient? Because they get more and more efficient. These products get more and more efficient as they mature. So at this point, most people look at it and they go, I'm not going to stop capitalizing. I'm going to keep putting. My money's got to reside somewhere. So why not put it somewhere where you control it? And then you do that, you get this kind of result. I don't know about you, but for me that's something that I just go like, I want that kind of control. I want that ability to generate wealth, create wealth. Nelson talked about that. We take it back. Nobody teaches them, nobody teaches people how to grow capital. This is how you grow capital. This is a clear cut example of growing capital. Yeah, it takes a commitment. If you're going to do this, I can tell you once you decide that this is something you want to do, you have to have the desire, you have to make the commitment to do this. You have to think long range. Now most people look at this and oh, 10 years took 10 years. Well, I can tell you 10 years goes by very quickly. And if you don't do this, that's what I want to think, want you to think about. If you choose not to do this 10 years from now, where are you at? While you don't have any control over your need for finance, someone else still has it. And hey, you may be okay with that. I just wanted to show you tonight what that would cost you if you choose to go that way versus choosing to get control, grow capital. Now I just want to do a bit of a comparison between having that bank loan and using the infinite banking concept. So the first thing was I want to talk about control. Who's got the control? Well, with the bank loan, it's the banker. That's the reality. We've all been there. I sat across the desk from a banker and I got the real sense of who's got the control in that action. That whole conversation. Who had the control? I was just hoping I was going to get the money I needed. Even though I did all my homework, I was hoping I was going to get the answer I wanted because he, or at that time, it was a he had the control. So yeah, ibc you as a policy Owner, you have the control, you get to decide what to use that loan for when you use it. All kinds of control. It's absolute control. You get with that. The interest paid. What happens to the interest paid with a bank loan? Where does that go? It goes to the bank owner. Quite often that's the shareholders with the infinite banking concept who's a go to goes to that pool and gets shared with the policy owners. You would be one of those policy owners, the death benefit. Well now I know at your local bank you can apply for life insurance and they'll give it to you, but that's something separate from your bank loan. With this process you get tax free death benefit and death protection that protects you and your family. And what about the lien? Well, we talked about that earlier with the bank loan, they put it on your assets like, you know, I can remember signing that personal guarantee. I didn't like signing a personal guarantee because that's, you know, they can, anything I do, they have a guarantee that they can use against me. So I didn't like that process at all. But with the infinite banking concept, the lien. So when you take a policy loan, there's a lien put on your death benefit within that policy. Everything is managed within that policy. You don't have to use anything else for collateral. It's all there in that one asset and it is an asset. Those policies are assets. And as a farmer, I know you appreciate assets. What you're doing if you use this process is you're building an ever increasing valued asset to use for your farm. The ultimate result, well over time I think we went through that pretty well. If you use third party lenders, it actually deteriorates your wealth. Yeah, you can still be successful. A lot of people have. All I'm telling you is that if you use this as your foundation for financing things, everything you do financially will be improved. It'll be improved over someone else doing the same thing. If you can control the banking function, you become the wealth builder. A lot of people fixate on the age 65 and they say, okay, it's you know, 65. We've been taught that that's kind of when we step back in life. And I can tell you I don't plan on stepping back at 65 and you know, but some people do. So we just brought this out and I wanted to show you something. At age 65, they would have put 707,000 premium deposits into their banking system. And their cash value at that point was 1.56. That's a pretty good result for them. So if you're thinking about, you know, passive income time, retirement time, this is kind of an opportunity that you would have with something like this if you had this system going for you and your farm and ranch.

You know, one question that we get asked all the time is when can we stop putting money into the policy? So let's address that question now. At 65, with that capitalization, policy can go on its own. There's so much, so many dividends built in. But I want everybody to see this from another vantage point. Not from a scarcity mindset of stopping, but actually from the abundance mindset, from flowing to continue to flow the capital. If this family puts 12,177 as premium at 865, what do you think? You can see them. You can look at the numbers. The cash value growth from 865 to 866. What do you think is that growth? And I've done the math on it. The growth is 82,000, 480. So if they flow money at age 65, they can spend 82,000 just that year from the growth in the policy at no risk. So question regarding when should we stop putting money in? Well, I guess we all know the answer now. Never. Because money has to flow. They may have other sources of revenue or income at that age. Can they not flow the income from those sources as premium and spend way more than what they're putting into the policy at that time? This ties to what Dan just said in terms of Nelson's golden rules. Think long range, don't be afraid to capitalize. And look at the death benefit. If they live a long life, did they do okay financially?

And how much risk is it to them to grow all the cash in the policy? It's all contractually guaranteed. Insurance company is growing the cash to match the death benefit. Crypto goes up, cash value go up. Crypto goes down, cash value go up. Stock market goes up, cash value go up. Stock market goes down, cash value go up, Inflation goes up, cash value go up, Inflation goes down, cash value go up. I guess you get the point. What happens in the system has nothing to do with what happens out there in the financial entertainment world. If they live a long life, they did just fine. If they, God forbid, something happens to them and they become an angel, they have boatload of death benefit. I'll come walking into the family. And family will never have a bad financial year.

So let's just look at how Marty and Wendy did. They could support farm Expansion, they own their operating loan in the time bracket that they set out to do it. They had total and absolute control. And yes, Wendy can stop teaching and spend more time on the farm. They have death benefit in place. God forbid anything happens, we're all going to check out a life. But if God forbid anything happens to them when they're younger, they have great protection in there for the business and for their family. They have access to retirement income. We just looked at that. And one of the key things is the wealth and knowledge transfer to the next generation. Because you know, as they use this process and as their kids are growing up and getting involved, if they get involved in the farm, that's going to be a part of what they learn is how they can control the banking function as it relates to their needs. Key kind of thing, something that I want to do with all of my children, my grandchildren, is teach them, teach them this because no one else does. It's not taught in the schools. So I love the fact that one of Marty and Wendy's objective was is to pass that on. Not only the wealth but the knowledge, because knowledge is wealth. Most important things that I wanted to emphasize for you is how much risk did they take as they did this? How much risk did Marty and Wendy take? Well, their answer is zero. They weren't taking risk. They were using certainty to get them to their objective. That's what I love about this, not about risk. We've all taught that if you want to get to something when it comes to financial, you got to put things. The more risks you take, the more likely you're going to get there. Well, with this infinite banking concept, the answer is you don't have to take risk. You still get to grow capital without taking risk. Now if they can achieve it, so can you. That's as simple as it is. And again we go back to the difference between getting stressed and or staying relaxed financially is who controls the banking function in your life. You don't have to put your money in prison like some people do, that they put it into places where it's locked away for a period of time before they can access it. Well, you don't have to do that. You don't have to rely on someone else and you don't have to be rich to become your own banker. Some of my farming clients are young couples and some of them are putting started because that's what they were comfortable doing. They started at 10,000 a year. Well, I can tell you over time that's going to make a huge difference for their farming operation. They're going to be able to control part of their cost. They already are using it, they're using it already, but they're going to be able to control more and more as they go. So you don't have to be rich to become your own banker. Just start where you can. Now if you like what you heard in this process.

And you want to know if it's going to work for you again, I'm just going to encourage you to schedule that call.

It's not going to cost you anything other than time to have a good conversation with one of us about how this may work for you. Remember the word schedule and text it at 780-809-4599 and just reserve that time. We'll go on if that's what you want to do and have a clarity meeting, really give you clarity on this because in the short time we've been talking about this, I can't describe everything you need to know about the infinite banking concept. Nelson used to take close to 10 hours to do his presentation. So you know, I'm really going to encourage you just to take the time and get clarity. And the other thing I'm going to tell you is if you work with us, a descendant, we're not going to leave you alone and ask you to do it on your own. We're going to give you lifetime mentoring. We have a quarterly group coaching session and in that session we just encourage people to share how they're using it, how the difference is making for them. We have breakout groups. You get to be engaged with other people who are like minded and already practicing the concept. It's a great opportunity for you to learn a little bit more. We've got a lot of resources for you and I just wanted to share some of those with you. So this is one thing I wanted to show you quickly tonight and that's that you know we have a lot of information available for you on this website. It's just a gold mine on the infinite banking concept. You can go and watch, edit, you know, a 90 minute video on the concept by just clicking there. There's all kinds of great information, you know, just who we are, what we do. There's all kinds of things down here like blog articles that are just great for you to watch and look and read and such. And then when you get to knowledge and you can shop at our store and in that store we have a selection of books and this one again is kind of the one place I direct everybody to Go, go and get that book. But there's other books, you know, it's just.

Great resources for you. One of the resources that you know we have is a book.

By Mary Jo Erman. It's called Farming without the Bank. That's something you can get off our website. And I just encourage you to take in that kind of information because Mary Jo wrote that book based on the principles in becoming your own banker, the book Nelson wrote. So all kinds of information available for you on our website. So I encourage you to go there. Now the other thing I'm going to encourage you to do is if you're into watching YouTube videos, this is our YouTube channel, it's called the Banker's Vault. And on it you can get all kinds of content, just all kinds of good information related to this concept. So there's all of lot of opportunities for you to do a lot of educating on your time when it works for you. And another thing, if you're into listening to podcasts or watching podcasts, we've got the podcast, it's called wealth without Bay Street. So if you want to listen to it on Apple or Spotify, that's what you go and find is wealth without Bay Street. And again, all kinds of success stories. You can hear people that are actually using this concept and the difference it's making for them in their lives. I just encourage you to take that opportunity to, you know, to do those things and take in that content. Just a great place to learn. Another thing I wanted to share with you, you don't have to get a policy or a system of policies from us. There's lots of great people out there that are infinite banking practitioners. So I'm going to really make sure and challenge you to make sure they are an infinite banking practitioner that you can work with. And the other thing I always encourage people to ask is make sure they're using it in their life. More importantly is please don't try to do this on your own. You know, you think about anybody that's successful in life, whether it's a professional athlete or whatever it is, they all have coaches, mentors, and I recommend that you get a coach. If all this process did for you was allowed you to keep more money in your family farm or ranch, would it be worth it? And if it created a sense of peace and stress free kind of financial well being over time, would it be worth it? Really? It's like I said earlier, in order for anyone to do this.

It takes commitment. And if you're willing to make that commitment to yourself and change something. Start where you can. You do have options. One of the things we always share with people, the first option is you can do nothing. Well, then nothing changes and your money keeps flowing away from you. You know, you're not growing capital someone else, you're growing capital for someone else, if not for you. So you can get that control back. Now, the second option is to schedule that call. So that's what I'd recommend you do. But again, you get to make that call. And if you're committed, what would you do?

And are you committed? Picture a day where the financial control is in your hands and not in the bank or the government or some risky stock market. That's what you're really hoping to do for your farm or ranch is get control, absolute control, and not someone else. With all the uncertainty you deal with, get some certainty around financing. If you could get to this place where your spouse thanks you over time for what you've done. Now I've had clients reach right out to me and just thank me for what I've already allowed them, helped them, educated them to do in their life. So this is just something that's for real. And when your finances are exactly where you want them to be, you'll know certainly that you have the freedom to travel, to do what you want, to relax when you want to relax, to serve when you want to serve, and you're going to have total and absolute control.