Here's The BEST Way To Purchase Stock

Because of that, it allowed us to still make a great return by, in a way, taking less risk because we purchased less shares. Right.

Hi.

If you are into purchasing stock, and let's face it right now, that may not be a good thing to do, but did you see how the stock market's been jumping all over on us? But my colleague Tran and and myself wanted to go through with you today was three methods that you could use to purchase that stock. And hey, guess what? We're going to show you maybe a way that you haven't thought about before that may actually be a better way than the conventional ways that most people fund stock purchases. So that's what's today about. So sit back, buckle in. We're going to go through three methods that you could use to purchase stock. And hey, Tran, what stock are we going to look and talk about today?

All right, we're going to talk about a stock that almost everyone has heard about. I feel like majority of the people have this in their pockets at all times as well. Yes, we are going to be talking about not the iPhone, but the creators of the iPhone, the Apple Apple stock. All right. That's the stock that we are going to refer to in this video.

Yeah, that's right. Because Apple's been pretty successful. So we wanted to pick on one that's, you know, had a good track record. And hey, we're not going to talk about what prices you buy it at and what it's going to grow to. We're just going to talk about how you could purchase Apple stock and a method, the three methods you could actually use to do that. And hey, see which one makes the most sense to you. That's what this is all about. And stick around. At the end, we're going to go through one other key piece of information with you that I think you should know about. So with that, Trent, let's get going. I know you got a nice little spreadsheet you wanted to bring up that we're going to talk about the three methods.

Yes, sir. Let's do this. All right, so I made a little simple spreadsheet here for everyone to see. Kept it simple so that none of us will get overwhelmed by it. As Dan suggested. We're not going to get into the nitty gritty of, you know, the share prices and all of that stuff. We're just going to show you three methods that you could use to purchase stock. And in this case, as we mentioned, Apple is the company that we're going to be looking at. Okay, so let's, let's first dive into the three methods and go through each method together. How does that sound, Dan?

Yeah, that's a great place to start. So why don't we start with cash, and I'll just jump in there on that one. So, hey, if you're going to use cash to purchase stock, what do you got to do? Well, that's a pretty straightforward answer. You got to either save it up or acquire that cash somehow. So most of us, it means taking the time to save up the amount of money that you're going to use to purchase that stock. And so unless you got some rich uncle or someone like that that's gifting you a lump sum of money, that's the process that most of us will go through. We'll save up enough money till we have that money available, and then we're going to go ahead and purchase a stock. So that's the first method. Cash.

Awesome. And so the second method is line of credit. So line of credit, I just kept it as line of credit. It could be secured or unsecured. Secured could be something like a home equity line of credit. For those of you who have homes, you may have built up some equity in the past few years, and you can utilize that in the form of what is called a HELOC or home equity line of credit. You can utilize that for investments. As an example, another form is an unsecured line of credit, which is something you could get based on your income. So you could just go to your local bank and ask them to if they could give you line of credit based on the income that you. You make on a yearly basis. So that's another option. Okay, so that's what a line of credit is. So we're going to show you how you could utilize that investing purposes. In this case, purchasing stock. We're not, we're not suggesting it. We're just showing that this is an option. This is an option that some people tend to take.

Yes, exactly. And the third method we're going to look at is what is called the infinite banking concept. Now, both Taran and I are infinite banking practitioners, and so we are very familiar with that concept and how it works. So if you aren't. And we're just going to give you a little insight as to what is the infinite banking concept. Well, really, at a high level, it's just privatized banking. That's right. So you build equity. And we just happen to use a very specific design of dividend paying, whole life as a warehouse, a Place to warehouse your money and build up your equity, your value. And then with that process, you actually take a policy loan for the things that you need in life. Now the ironic thing or the piece that you really need to know is when you take that policy loan, you haven't stopped the growth of your money. Your money keeps on growing because all you've done is used your equity as collateral for a policy loan. So in the infinite banking concept method that we're going to look at, you're using other people's money. That's right, you are using other people's money. Just like the line of credit, you're using other people's money. That is the same with the infinite banking concept and the warehouse a place you store it is just different. Instead of, you know, having it stored in a commercial bank that you can use. No, you store it in a dividend paying whole life insurance policy at a life company and then they give you access. That's what we teach people to do. And this today we just wanted to show you how all three methods would compare to each other and you know what the different results would be. So I hope that helps you give you just a brief understanding of what the infinite banking concept is. If you don't understand, the other thing we're going to challenge you to do if you don't know about that is just go to watchibc.com there's going to be a link down below that you can get access to 90 minute video. And that video will just give you more in depth information on what the infinite banking concept's all about. So that's just an opportunity you have when you got a minute and take, you know that 90 minutes is set aside Tom, and learn something new. I just encourage you to do so. All right, with that Tran, let's just go through and see what, how it would look if we used all three methods to purchase Apple stock.

Absolutely. Let's do this then. So for the amount used, we are going to be using a simple round figure of 10,000 cash. And we're going to assume that the person in this case got a line of credit of 10,000 is going to utilize all of that. And, and in, in the infinite banking concept method we are going to start a policy for 10,000 as the premium and that's premium on a yearly basis. And immediately when we deposit that premium to the insurance company, we would get access to roughly $5,500. How did we come up with this number? This is just based on experience, on our experience doing this for many years. When it comes to getting a policy that has a premium of 10,000, you roughly get access to about 5,500 immediately. All right, so that's the amounts being used. Next up, we are going to look at the investment return. We're going to assume that Apple going to go up by about 10% in the next year. Okay. Just keep it nice and simple. Next up is loan interest. So this will only apply to a few of the methods, as you will see. So cash, obviously, there's no, there's no interest here that you accrue on it. Now, we're going to keep it simple, of course, opportunity costs and all of that.

But that's a great point. Great point, though, Taran, because most people don't realize that, you know, when they spend cash, they've given up an opportunity for that money to do anything for them anymore. Like, sure, they've invested it. In this case, that money is no longer growing the way it was before. So that's a key point, and we haven't factored that in. Just to keep this simple and go ahead, talk about the line of credit.

Yeah, so the line of credit with today's interest rates, we just kept it at 5%. It looks like it's going up every day sometimes, but it's keeping that 5% for now. And looking at the infinite banking concept method, so when we take out a policy loan, there is interest that is involved. So that interest as of today is 6.2%. So, yes, this is the highest of the three. But let's keep moving forward and you'll see how it all pans out. All right, so moving on to the next column. So we got the gross profit. So this is easy, right? 10% is our return. So 10% on 10,000 is $1,000 in profit. Line of credit would give you the same as well, 1000 profit. Again, this is gross. Okay, and then the Internet banking concept method, because we are using 5500, it would be lower our gross profit from the investment. Okay, Gross profit from the investment would be 550. All right, let's move on to the next column. So this is the interest charged, okay? So this is the actual dollar amount. So based on cash, it's zero. We already talked about that line of credit. It'll be 500. So 5% interest on the 10,000, that's $500 is the dollar amount of interest that you will be charged again annually. And then for the infinite banking concept, the interest you'll be charged is $341 based on the 6.2% on the 5500. Okay. All right, so next up, we looking at the net profit. So the net profit is net after taking out the interest charged. Okay. So with cash, easy peasy. 1000 is your net because there's no interest charged. Line of credit, it would be 500. Right. When you take away the 500 of interest charge. And for the infinite banking concept method, you would be left with a net profit of 209. All right, let's talk about whose capital we're using in each case. So in each case, in the first method, it would be the client in this case, right. The individual in this example, using their own cash, their hard earned cash for this transaction. And then in the line of credit method, you're using someone else's money, other people's money, as the term goes.

Which is the bank. And for the infinite banking concept, as Dan alluded to earlier in the video, you are using the insurance company's money. Okay. Because your money is sitting inside the policy and going back to what Dan said. It is growing every single day. So your money is not being touched, it's not being interrupted. Okay. And that money that I'm referring to is the 10,000 that you use to start your policy gives them a good.

Idea of whose capital is being used. And yeah, that's good to help people understand that because a lot of times we've seen people have thought with the infinite banking concept, that's my money that I'm using. No, it's not. You are using the life insurance company money, and your value has just been used as collateral for that loan because you want your money to stay in there. You want it to keep on growing. That's one of the key attributes of the infinite banking concept, is that your money doesn't stop growing in uninterrupted compounding is, is just a great attribute that comes with the infinite banking concept.

Absolutely. All right, so, and speaking of uninterrupted compounding and the growth that segues into the next column. So right here you will see there's what is called the cash value growth. Obviously, the first two methods don't have this feature because they are not insurance policies, but the infinite banking concept has this. So again, what we did is we just took a look at, based on our experience, how does a $10,000 premium policy grow? How does the cash value grow every single day? What is that dollar amount? And based on our experience, based on doing a number of policies over the years, we determined that Number to be around $3.3 to $4. So we just took arbitrary $3.65 in between both those numbers, and that gives us cash value growth over the year. So over 365 days of $1,332.25. And this right here, Dan, as you know, is the unseen, right? A lot of people do not see this when they learn about this, this concept they get, they get. Most people get stuck on the loan interest rate. Oh, this is the highest loan interest rate. And I mean, even the net profit I'm making is not much. But here is the unseen. This is what's happening in the background because you're not interrupting the growth of your capital.

All right, so great example that you went through with cash value growth, Tran. That's exactly right. And some of the things that, you know, I find that people don't realize is that number that you talked about that cash value growth every day is a number based on the first year of this policy. That's right. The first year it's going to get better the next year. You know, as long as a person utilizes their system the way we teach them, the way it's designed and they keep capitalizing it, that cash value growth will actually get better in the second year than it is in the first year and better in the third year, on and on and on. But again, today, we're just looking at that one year snapshot. Just to give you a sense, when you look at all three, how does it make sense to use the infinite banking concept to achieve your objective of buying stock is, hey, as Tran pointed out, you know, he ended up buying less stock because he had less capital this way to utilize in the first year. And, you know, interest rates were higher. And again, a lot of people fixate on the interest rate. But when a policy is designed properly, your cash value growth every day is going to be greater than the cost of interest every day. So you start to build that tailwind, and that's, you know, just that tailwind behind your financial system that keeps on growing. And that's a key element. When you compare, whatever you're doing, you always have to compare to what. So we're comparing it to using cash, we're comparing it to using the line of credit, to the concept that we teach, which is, you know, the infinite banking concept. So that's a great example. And with that, Tran, let's just look at the next row and what the final outcomes are.

Yeah, yeah. So just piggybacking off what you said there, Dan. What you all are now going to see is the final outcome. And it might surprise you. So when we look at cash, your final outcome is 1000, right? Line of credit, final outcome is 500. But look at the infinite banking concept method. Again. Dan had said we were able to buy less shares above two methods, cash and line of credit, because we had a lower amount in capital to begin with, right? 5,500. But because of that tailwind, because of that cash value growth every single day from the compounding that takes place inside the policy of your money, okay? The final outcome ends up being $1,541.25. And, and that number is derived from the cash value growth plus the net profit, okay? And this is what enables you to get ahead and get ahead faster and it enhances, in this case, the purchasing of a stock. But imagine using this for any investment, okay? And we haven't even talked about taxes yet.

Exactly.

So let's talk about taxes.

For taxes, of course, when you make gains, the CRA or the government, they want their fair share, right? So when it comes to cash, again, we're not getting into the nuances of the actual numbers. We're just going to talk about what amount is going to be taxed, okay? So with cash, guess what? Your entire profit of 1000 is going to be subject to taxes, okay? With the line of credit, 500 is going to be subject to taxes. And yes, you may get the, the, the potential of a, of a deduction because you used a line of credit so you could deduct the 500. But again, we're just keeping it simple. Out of the profit, the 500 is subject to taxes. Pretty good line of credit, good method. But look at infinite banking concept.

It's only $209 that is subject to taxes, okay? So because we purchase less shares, our profit was lower from the purchase of the shares and so we got tax less. So it ended up being that purchasing less shares worked in our favor because of the cash value growth that just kept growing every single day. So because of that, it allowed us to still make a great return by, in a way, taking less risk because we purchase less shares.

Right.

And we haven't even talked about what if it went the other way. But hope that makes sense to everyone. Dan, you wanted to add anything there?

Yeah. So yeah, there's a couple of points and great job of explaining that trend. But when you think about, you know, that $1332 of growth, it's not going to be taxed. You're going to, it's going to stay in the policy, it's going to just keep on creating value there. There's not going to be a taxable event. Whether that's why with the infinite banking concept, the way we've got it shown here, there's $209 of it are taxable. And just like with the line of credit, you know, if you wanted to, you could claim the interest that you paid to create that profit even with the infinite banking concept. So those are options for you. And the other thing is, is that hey, you know, we all know if you saved your cash and it like a tax free savings account, you could get away from the tax but even just drop back to the line before and you know, look at the outcomes. It's still better if you're utilizing the infinite banking concept to grow your wealth. And that's why, you know, when we look at this and whatever stock it is you purchase and it doesn't matter if your rate of return is 10% or 20%, you know, this is all relative, it's all going to work out the same way. It's still going to be an advantage to use this infinite banking concept as your foundation for the things that you do financially in life. And if you do that over time, it just creates more and more wealth for you. And that's why, you know, we teach this, that's what we like about it. It gives people that opportunity to do something. And because we haven't even talked about the other attributes, you come with the infinite banking concept either we haven't, we haven't touched on them. There's a lot of other values that come with it, but it's just a great way to grow your wealth. When you're thinking about buying stock and the three methods that are typically used out there, this is a new one maybe for you, but it's one that's worthwhile to think about. And if you don't know again about how this works and what is the infinite banking concept, we're just going to encourage you to go to watchibc.com and we'll put a link at the bottom that you can get access to. That 90 minute webinar just gives you a little more information. And yeah, that's what I'd like to share with you. And hey, there's one other point Tran that we said we were going to help everybody with one other bit of information that they could take away from our little video today that could help them make a difference in their life. And why don't we Go to there now.

Yeah, yeah, let's talk about that. And it's a great segue because you talked about the other attributes of infinite Banking concept and there is a way to find out about that.

So why don't you show them that?

Certainly. So there is a book and this is kind of the book that we keep as a foundation for teaching and helping people understand the infinite banking concept. That book is titled Becoming youg Own Banker by R. Nelson Ash. And it's a self published book and it sold over 500,000 copies. Now people will always go, well, you know why? Well, it's pretty straightforward. When somebody asks me, you know, why is so many of those copies of books sold? It's because it works. Now both Taran and I use this concept in our life and we can show you how we've used it and how it's made a difference for us. But we know it works and we just again encourage you to go and look at that book, get a copy of it. There's going to be a link down below. You'll get access to a link where you can purchase that book. It's only 92 pages long and it's only about a four hour read. And it's just really a great book. And I know what it was. Nelson Nash, the founder of the infinite Banking concept, he had a 10 hour webinar that was a great webinar. If you ever got a chance to sit in it, you won't anymore because Nelson is no longer with us. But he took that 10 hours and he put it into a book and that's what you get. And it's just a great way to learn about the infinite banking concept. So we've gave you two really good ways to learn about it. One, through the book. Can't go wrong with the book. The second one is that 90 minute video called watchibc.com and hey, next time you go to buy stock, we encourage you to think about, hey, there's more than one way to buy stock.