Financial Security With YOUR Family Banking System

40,000Amonth in April, and we'll eclipse 60,000amonth before the end of August. This is all money that would have otherwise flowed. Where would we have made other bank owners more wealthy? Guess who's multiplying that money now and who are they multiplying it for?

Everything that we do financially in our family banking system is accomplished by obeying the principles that Nelson teaches. He wrote the book for you. He didn't write it for anybody in the financial sector. He wrote it for you. And you know someone who would benefit from the gift of reading this book, and you might have a preconceived notion that they don't like to read, they won't read the book. Maybe they won't interpret it the same way as you. You might feel it's too complex or too simple, whatever that is. Please set those aside. Get a copy of this book in the hands of someone that you think would benefit from the gift of this concept. Is that adding up in a real hurry? That's all from shopping at home. All from shopping at home. And this is only the immediate family. If I showed you what we do as a family banking system for the entire family, you wouldn't have believed me if I put the numbers up here. So I'm just showing you the immediate family as Nelson and I having lunch together in Kelowna. And he said to me, what you've done is you've created perpetual motion in your family's financial world. Keep it up. We host annual family banking meetings. Isn't that cool? It was a little bit easier, I think, for us to do that, because ever since 2008, I've been hosting our entire family in our home for dinner every Sunday. I have a fear of loss. I want to spend as much time with my family as I can. And so every Sunday, we sit down to dinner, we break bread, we recharge for the week ahead, we give thanks, we express gratitude, because that fills my heart with joy. When we said we want to have a family banking meeting every year, there weren't any objections to it. You might run into some roadblocks when you get to the time when you suggest this to your family, or maybe you won't. But the key is you got to get together and you have to talk about the process and you have to talk about how you implement it in your family. That's what we do. Nelson re emphasized that you've got to learn how to run a business. That's what this is.

Once you understand the grocery store example, in the Book. What's the key takeaway from the grocery store example? Don't steal the peas. He said. Once you understand the grocery store example, the rest of becoming your own banker is a piece of cake. What do you think we focus on.

In our family banking meeting, especially with the kids? Don't steal the peace. The kids grasp this much quicker than adults do because they have a much higher degree of neuroplasticity. That's why it's so important and advantageous to teach a child a new language at such a young age. Our children are using language like keep the money in the family. When you take out a policy loan, don't steal the piece. You got to repay the loan. This is my beautiful wife, Rebecca. She is administers the family banking system.

Without her, honestly, I wouldn't be standing here talking to you today. She's absolutely incredible and I honor her every chance that I get because it's not easy. When you see the number of policies that we have in our system and what we set about to do, it's not an easy task. And she decided to take on that responsibility in the family. And I just owe her an immense amount of gratitude and respect for the work that she does. And she's also involved in the low family group of companies as well and does a great job. And at the top of page 25, Nelson asks, would you have much of a grocery business if you were the only customer? What's your answer? No. You must build it to the point where you accommodate the needs of others in order to prosper. The same principle applies to banking. Furthermore, I am not describing one life insurance policy. This is to be a system of policies. So this is a picture that was captured. Many of you might have seen this before in one of our webinars or on the YouTubes. This is a picture that was captured at our family banking meeting. All of the children participate in the meeting. They get recognized for their achievements in the family banking system. They get to ask questions. And children can ask some pretty insightful questions that help the adults learn too. We set goals with the kids. We talk about what the family is going to use the system of policies for for the upcoming year, how much money is flowing back to the family system each month and it keeps going up. And I'll show you all of that and so much more. This was our first family vacation since COVID And this was in March in Cancun. And we hosted our family banking meeting at the resort. And you know how people love to go out before the sun rises. And put their towels on the seats near the pool. So I said to my kids, I said, listen, if you get up before mom and dad and you want to go out and get some chairs for poolside.

Don'T put towels on them. Put your family banking shirts on them.

And what do you think happened when I went down to the pool.

What do you think happened with adults that were around, they were asking, excuse me, I'm sorry, I couldn't help but notice, but.

Annual family banking meeting, what is that? And I said, you know, thank you for asking.

May I ask you a question? Sure.

Have you read this book?

That's it? No, I haven't. Are you sure you haven't read this book? No, I haven't. We're going to get you a copy. When a person reads this and they catch it, much like all of you did.

You know that feeling. And it was different for all of you. Something caught you in this book to say, I know that there's something fundamentally wrong with the financial system. I know there's a solution out there. This is what I've been looking for. I need to do this.

That's how lives get changed. One question, one answer.

This is meant to be a system of policies. Nelson said this was not meant to be achieved through the use of one policy. This is meant to be a system that is accumulated incrementally and gradually over a period of time. We had two policies in our system, so one on Rebecca and my life jointly, which we would never do again. And the second was on our firstborn son, Jackson.

As of February 2022, we had 62 policies in our family banking system. 63 as of April. I spoke at an event in Daytona, Florida. It was a money multiplier event. There were hundreds of people there from all across the United States. And I delivered this very same talk at that event. Got a standing ovation there, too.

Each one of our children has five policies on their lives already. Number six is in underwriting at the insurance company right now. And another policy on the life of my wife, Rebecca. So by the time I get back to Edmonton this evening, I'll have an update on the status of those applications and this number may balloon by an additional five policies, bringing us to 68. Now, why would we want to put so many policies in place for our kids? Here's the reason why.

When you have children, policy applications going through, the insurance company's general rule of thumb is that they don't like to see a total death benefit on your child that exceeds 50% of the death benefit on your life. It's not that they won't issue it or they won't approve it, just a general rule of thumb. Like if you're applying for more than 50% that you already have in coverage on your own life, can you help us understand why you're doing that? By the time the patriarch and the matriarch of the family pass away, the total death benefits in their policies have been increasing every single year. They keep going up. And as they keep going up, what can you do to the kids?

You can keep adding more policies on their lives too. Then when you die, the system becomes self sustaining because the tax free death benefit proceeds now take care of their system for the rest of their lives. And their death benefits are going to be a multiple more than what mom and dad ever had. So what can they do for their kids? They can create even bigger policies. Do you see what starts happening? It just gets bigger. Your capacity grows. Total premium in 2009, 16,800. This year to date, 530,489. That premium will eclipse 600,000 before the end of August. This is where I started. You want to learn how to swim? Do you dive into the deep end of the pool or do you wade your way in?

You wade your way in. This is where we are now. Nowhere near the deep end, by the way. We. We have a lot more room to grow. Total death benefit was a half a million in 2009. $30,000,701 in February. 31,045,000 in April. Do you see the growth from February to April? Total cash value was $4,250 in 2009. 2 million in 2000 in February of 2022. 2.335 million in April. Do you think it's much larger in June? Way larger. $300 policy loan for a car seat for my son Jackson in 2009. You could still get a policy loan for less than $500 back then. You can't anymore. Total loan portfolio was 200,000 in February. It's 706,000 as of April. And it's higher again in June. Loan amount available was 3,825 in 2009. At the end of 09, 1.8 million in February. 1.4 million in April because we've accessed more policy loans. But what's happened to our aquarium of capital? So our loan portfolio grew. And what happened to our cash value? It grew as well. Uninterrupted the loan repayments back to our family banking system. Were $330 in 09.26,000amonth in February, 40,000amonth in April and we'll eclipse 60,000amonth before the end of august. This is all money that would have otherwise flowed where? To someone else's bank? Would we have made.

Other bank owners more wealthy? Because they would have taken all that capital and just continued to multiply it over and over and over again. Guess who's multiplying that money now? The life insurance company. And who are they multiplying it for? The owners of the company. And nelson asked the question, would you have much of a grocery store business if you were the only customer who shopped there? So am I like directly helping all of you? And are you all directly helping me? What a great way to be in business. Together. We co own a company, all of us, that has never failed to produce profit. Does that check? A box. An important box. We're paying no tax on the daily accrual of total cash value. The cash value is contractually guaranteed to rise every single day and it cannot go backward. We have a convergence of events going on right now. Taxes, volatility, inflation, loss of benefits, longevity. You can either be harmed by those circumstances or rewarded. You're going to be rewarded. And we're all in it together.

Unilateral, binding contracts that are private.

Private. You're not on the government's radar here. Now, Nelson said. He said windfalls will come in the family banking system. Windfalls will come. He's talking about death benefit. Because what is your mortality? Is there a hundred percent probability that you're going to die someday? You just don't know, right? If you. If you stop by a loblaws on the way home today and you pick up a carton of milk, you can flip it over and look at the best before date. Can't look at your birth certificate and see the best before date. But I promise you the day is going to come. Death will come.

This gentleman that you see here is papa. That's my wife's dad. And papa worked his entire career for the edmonton police service.

Shortly after he retired, I met with him and not only congratulated him on his retirement, but said, you know what, papa? Here's what I'd like to do. I'd like to purchase an insurance contract with you as the life insured. I'll be the policy owner so I'll pay the premium. You don't have to come out of pocket one dimensional.

If you permit me to do that, here's what I promise will Happen. I'm going to utilize the accumulating value. While you're alive, we're going to include your policy in the family banking system when you die, which we don't expect to happen years, because if you get approved, the actuaries think you're going to live a long time. He goes, well, I don't think I'm insurable. I'm type 2 diabetic. I said, well, there's only one way for us to find out. Go through underwriting. And I said, when you die, if we get you approved and we put this policy in place when you die. Nona, Papa's wife, Nona's not going to have another bad financial day for the rest of her life. And we're going to use a portion of the death benefit to put policies in place on all nine of your grandkids and fund them. All that I want in return is to be reimbursed for the premium that I put into the policy. He said, you know what? That sounds like an amazing arrangement. Let's do it. He got approved. So I purchased two policies on him, not one with the expectation that we were going to grow and add to the aquarium of capital for the family banking system for many years to come. A few years later, he was diagnosed day one with cancer, and five weeks later he was gone. He passed away in September of 2020. Now, you have to remember, this is right in the thick of COVID When he was advised that the cancer was inoperable, he wanted to go immediately to hospice. He didn't want to go back home. His pride. He just didn't want to go back home. So we said, okay. So he was admitted to hospice, and when I went to visit him, you had to be in full ppe, right? Like you. You just. It was right out of a science fiction movie. And so my last interaction with Papa was three days before he passed. And I reiterated to him everything that we promised to do. We also had a really good conversation about what, you know, he was resolved in the fact that he was going to pass away. And he was one of the bravest people I've ever met. And we had a good discussion. And then Saturday, that Saturday evening, he passed away. And we honored those promises. Nona is just fine. We take care of everything for her. We told her, you'll never have to shove your driveway, mow your lawn, take care of your garden. We'll be there. We'll help Nona. You're going to be just fine. No debt. The estate is completely debt free. All Nine of the grandkids have been taken care of and I was reimbursed for the premium that I paid. Death will come. And that's a windfall that came back to the family banking system, income tax free. This picture was taken on a family vacation two years before Papa passed. And normally Papa would be seated right here at the head of the table and I'd be seated right next to my wife Rebecca, who doesn't look like she's very happy with the meal she's eating.

But that's where I would be seated. And when we were seated to dinner, all the kids, so my daughters, they always give me a kiss on both cheeks. I've been doing that for as long as I can remember. And all the kids were doing this at dinner. And so papa comes up to me and he says.

You sit here.

And I said, well, Papa, he said, no, you sit here. And then he kind of leans in my ear and he says, you see all the kids? I said, yeah. He said, they love you. And I said, thank you. And he said, you're the godfather of the family now. It's your responsibility to be the leader of the family. You sit here. So that's a duty. And so we teach our kids, we meet as a family, we keep the money in the family. Whereas what's happening out there still to this day.

Is that families are being taught to be divisive. How many of you have heard at some point in your life.

One day you're going to grow up and you're going to move out of the home and start your own family.

Only three or four of you, wow, okay, you're going to have your own bills, you're going to have your own financial obligations. You're going to understand what it's really like. How many of you heard that before? If we were to all stand up and go down the hall and if I said that the room down the hall is filled with ultra high net worth wealthy people and watch, I'm going to ask them the same question. Not one hand in the room would go up.

Because they're taught to keep the money in the family. Circle the wagons. And I've told my kids, I've told my nieces, my nephews, my in laws, I want the mortgages, the business equipment, the cars. Sound familiar? No else's book. I want all of those things financed through the family banking system.

And here's what's going to happen as it relates to our children and to my nieces and nephews. So when our kids are Conceptual enough as young adults to really, truly understand the essence of what's been created for them. They will have already had multiple instances of accessing and repaying policy loans. Are they developing a rhythm? And the language that they're hearing is shop at home for all the things that you need financially. Use the family bank, access the family bank over and over and over again. So our family lawyer who's been with us for 11 years now, he's amazing, he's going to sit down with the kids and he's going to say now that you're young adults and you've had some exposure to this process, I need to familiarize you completely with what your mom and dad have put into place. There is a cumulative death benefit amount on your parents policies of I'm just picking an arbitrary number, it's going to be probably larger than that at that time. Your parents have cumulative death benefit in their insurance contracts of $65 million. They own policies on your lives that have a cumulative death benefit of $26 million.

You're going to need access to money for a wide variety of things throughout your lifetime. Your parents have asked me to meet with you today to give you options because they don't want to force this upon you. They really want to give you the option to opt out. So here are your options. You can shop at home financially for all the things that you need. And when you access a policy loan from the family banking system, you will repay that policy loan at a negotiated time frame. But the interest rate is 10% and it's not subject to negotiation.

Every dollar that you pay back into the family banking system you get to reuse again, including the equivalent of the interest that you paid. And when your parents die, your system will become self sustaining for the rest of your life and for the next generation.

Your other option is that you can shop outside the home. You can go to TD Bank, Scotiabank, RBC. You can finance your homes, your property, etc. Your businesses, etc. Now if you choose that option, your parents will characterize that as theft from the family banking system. And your parents have instructed me to never do business with thieves.

So.

If you were to do that, which it is your choice and privilege to do that.

You will receive none of the death benefit from your parents life insurance contracts when they pass away. And the policies that they own on your life will be transferred in ownership to charitable organizations of their choosing.

Take all the time you need to figure out which option is best for you.

And once you make a decision, we're going to review this memorandum of understanding and we're going to execute that memorandum of understanding. Then we're going to revisit it at every family banking meeting.

I've had a wide variety of responses to sharing that I've had people say, wow, I never even thought about that in my own family banking system. That's, that's a really good approach. I think I'm going to embrace that. I've had other people say that is harsh. The world is harsh.

And I want to teach my children that this is a business. The children may ask, can we take control of our own policies.

If they've demonstrated good stewardship? The answer is yes. But you have to buy them from mom and dad. And the purchase price is all the premium that we've paid because we put these policies in place on your life when you couldn't do it for yourself.

And it's an asset because I meet a lot of parents. My advisor teammates tell me all the time that they meet with parents as well who say, can't wait till our kids are old enough and we can give them to the kids and they can take them over. What do you think will happen to those policies? Some balloon head is going to give your kids the same advice that my dad got. That's what's going to happen. And believe me, I'm going to meet that balloon head someday that gave that advice to my father. Go ahead and cancel the policy, Bob. Surrender it for the cash surrender value. You don't need the death benefit. Go ahead and cancel that policy, Jackson or Caitlin or Charlotte or Anna Grace. Get the cash value. You don't need all that death benefit. You're only 35 years old. What do you need that for? Get the cash value out of there. I told my children, if you ever surrender a life insurance contract from the family banking system, I will haunt you in eternity.

And I'm not kidding. Don't ever even dream at night of terminating very business that you are going to rely upon to provide you with all the guarantees that you're aware of. But don't point the finger at someone else. If you misuse your system, that's on you. You own the business. If you access policy loans and you don't repay them, there's no one else to blame except the reflection that you see in the mirror. Don't abuse it. It's meant to be utilized but it's meant to be well taken care of so that you can show transfer the knowledge first and money second to the next generation and the generation after that and the generation after that.